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DFS GUARANTEED INVESTMENT FUNDS

DFS Guaranteed Investment Funds are established by Desjardins Financial Security Life Assurance Company.

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.


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Financial Information as of June 30, 2015

2015 Semi-Annual Report

desjardinslifeinsurance.comThis Document is also available on our website:

JUNE 2015

Thank you.Thank you for choosing the strength and stability of a company specialized in providing individual insurance and retirement savings products to over five million Canadians, every day, to ensure their financial security.

Thank you for also choosing Desjardins Group, the largest cooperative financial group in Canada, whose financial stability is recognized by the following credit ratings which are comparable, if not superior to those of the five largest Canadian banks and insurance companies:

• Standard and Poor’s A+ • Moody’s Aa2 • Dominion Bond Rating Service AA • Fitch AA-

The Contract and Information Folder contains important information on the DFS Guaranteed Investment Funds. Please read it carefully before investing. DFS Guaranteed Investment Funds is a registered trademark owned by Desjardins Financial Security Life Assurance Company. DFS Guaranteed Investment Funds are established by Desjardins Financial Security Life Assurance Company.

DFS stands for Desjardins Financial Security.


This document is printed on Rolland Enviro paper.

100%

1DFS GUARANTEED INVESTMENT FUNDS


Investment SolutionsDFS GIF – Conservative – Multi-managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4DFS GIF – Moderate – Multi-managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10DFS GIF – Balanced – Multi-managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16DFS GIF – Growth – Multi-managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22DFS GIF – Maximum Growth – Multi-managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Individual FundsIncome

DFS GIF – Money Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36DFS GIF – Income – Beutel Goodman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41DFS GIF – Income – Fiera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Balanced and Asset AllocationDFS GIF – Diversified Income – Quotential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56DFS GIF – Balanced Income – Quotential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61DFS GIF – Canadian Balanced – Fidelity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66DFS GIF – Canadian Balanced – Fiera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71DFS GIF – Canadian Balanced – Bissett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84DFS GIF – Balanced Growth – Quotential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89DFS GIF – Canadian Balanced – CI Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94DFS GIF – Balanced – Ethical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99DFS GIF – Income and Growth – CI Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104DFS GIF – Growth and Income – Northwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109DFS GIF – Global Growth – Northwest Select . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114DFS GIF – Global Balanced – Jarislowsky Fraser . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119DFS GIF – Canadian Asset Allocation – CI Cambridge . . . . . . . . . . . . . . . . . . . . . . . 124DFS GIF – Growth – Quotential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129DFS GIF – Global High Income – Multi-managers . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Canadian EquityDFS GIF – Dividend Income – Bissett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143DFS GIF – Canadian Dividend – Fiera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148DFS GIF – Canadian Dividend – Northwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161DFS GIF – Canadian Equity – Fidelity True North® . . . . . . . . . . . . . . . . . . . . . . . . . . 166DFS GIF – Canadian Equity – Bissett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171DFS GIF – Canadian Equity – Fiera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176DFS GIF – Canadian Equity – Jarislowsky Fraser . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183DFS GIF – Specialty Equity – Northwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188DFS GIF – Small Cap – Bissett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

Foreign EquityDFS GIF – American Equity – MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198DFS GIF – American Equity Value – Desjardins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203DFS GIF – Global Dividend – Desjardins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208DFS GIF – Global Equity – MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213DFS GIF – Global – Fidelity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218DFS GIF – International Equity – MFS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223DFS GIF – International Equity Growth – Desjardins . . . . . . . . . . . . . . . . . . . . . . . . . 228

NOTES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

TABLE OF CONTENTS

What’s a DFS GIF?DFS stands for Desjardins Financial Security.

GIF stands for Guaranteed Investment Fund.

A Guaranteed Investment Fund (GIF), commonly known as “segregated fund“ is an investment fund created and issued exclusively by life insurance companies. It is offered through Contracts which provide maturity and death benefit guarantees.

Is this document available online?Yes, at desjardinslifeinsurance.com/ GIFreports.

Is it possible to opt out of receiving paper copies of this financial report? Yes. Please send a letter to:

Desjardins Financial Security GIF Administration 1 Complexe Desjardins P.O. Box 9000 Montreal, QC H5B 1H5

Or send an email to:

[email protected].

Please include your name, mailing address, telephone number, email address and client number in your request, and indicate whether your request applies to the annual financial report and/or the semi- annual financial report.


Investment Solutions

4 DFS GUARANTEED INVESTMENT FUNDS

DFS GIF – CONSERVATIVE – MULTI-MANAGERS

STATEMENT OF FINANCIAL POSITION

As atJune 30

2015December 31

2014$ $

(unaudited) (audited)

ASSETSCurrent AssetsCash — 527 Investments at fair value through profit

or loss (FVTPL) 6,065,572 2,867,854 Premiums receivable 8,438 9,468 Receivable for securities sold 2,642 —

6,076,652 2,877,849

LIABILITIESCurrent LiabilitiesBank overdraft 2,143 —Accrued expenses 12,020 5,197 Withdrawals payable 29,171 1,178 Payable for securities purchased 7,695 671

51,029 7,046

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS 6,025,623 2,870,803

NET ASSETS PER UNITSeries 6 5.25 5 .18 Series 7 5.28 5 .19

The accompanying notes are an integral part of these financial statements.

STATEMENT OF COMPREHENSIVE INCOME – unauditedPeriods Ended June 30

2015 2014*(6 months) (5 months)

$ $

INCOMEInterest for attribution purposes 64,021 5,817 Dividends 13,221 1,660 Changes in fair value:

Net realized gain (loss) on investments 7,987 (2)Net unrealized gain (loss) on investments (2,765) (900)

82,464 6,575

EXPENSESManagement fees and guarantee charge 54,525 2,256 Operating expenses 5,606 210

60,131 2,466 Withholding taxes 699 —

60,830 2,466

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS 21,634 4,109

DATA PER SERIESSERIES 6Increase (Decrease) in Net Assets

from Operations 15,802 4,092 - per unit 0.02 0 .08

Average number of units 820,642 51,468

SERIES 7Increase (Decrease) in Net Assets

from Operations 5,832 17 - per unit 0.05 0 .08

Average number of units 110,078 200

* Beginning of operations in February 2014.


STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS – unaudited

Periods Ended June 302015 2014*

(6 months) (5 months)$ $

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS, BEGINNING OF PERIOD 2,870,803 —Increase (Decrease) in Net Assets

from operations attributable to contract owners 21,634 4,109

PremiumsSeries 6 2,954,416 736,838 Series 7 597,251 1,001

3,551,667 737,839

WithdrawalsSeries 6 (408,481) (1,564)Series 7 (10,000) —

(418,481) (1,564)

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS, END OF PERIOD 6,025,623 740,384

STATEMENT OF CASH FLOWS – unauditedPeriods Ended June 30

2015 2014*(6 months) (5 months)

$ $

CASH FLOWS FROM/USED IN OPERATING ACTIVITIESIncrease (decrease) in net assets


Adjustments for:Net realized gain (loss) (7,987) 2 Net unrealized gain (loss) 2,765 900

Proceeds from sale/ maturity of investments 258,992 545

Investments purchased (3,451,488) (742,716)Receivable for securities sold (2,642) —Accrued expenses 6,823 1,184 Payable for securities purchased 7,024 15,060

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES (3,164,879) (720,916)

CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 3,552,697 737,764 Amounts paid on withdrawals (390,488) (1,347)

NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 3,162,209 736,417

Increase (decrease) in cash/bank overdraft (2,670) 15,501

Cash (bank overdraft), beginning of period 527 —

CASH (BANK OVERDRAFT), END OF PERIOD (2,143) 15,501

SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest paid — 2

The accompanying notes are an integral part of these financial statements.* Beginning of operations in February 2014.


SCHEDULE OF INVESTMENT PORTFOLIO – unaudited

as at June 30, 2015Number of Units Cost

Fair Value

$ $

INVESTMENT FUNDS (100.7%)Beutel Goodman Income Fund, I-Class 194,513 2,449,547 2,422,439 BlackRock Active Canadian Equity DC Fund 5,349 170,326 162,264 BlackRock CDN US Equity Index Fund, Class D 22,483 348,273 367,078 Desjardins Overseas Equity Growth Fund, I-Class 9,081 170,384 183,212 Desjardins Overseas Equity Value Fund, I-Class 11,980 178,198 179,418 DGIA Canadian Bond Fund 237,035 2,431,041 2,429,189 Fidelity True North® Fund, Series O 3,467 158,897 162,345 Franklin Bissett Canadian Equity Fund, Series O 1,210 162,617 159,627

TOTAL INVESTMENTS 6,069,283 6,065,572

OTHER NET ASSETS (-0.7%) (39,949)

NET ASSETS (100%) 6,025,623


TOP FIVE HOLDINGS OF THE UNDERLYING FUNDS – unaudited

Security Name Percentage of Portfolio

DGIA CANADIAN BOND FUND 40.4%Canada Housing Trust, 1 .95%, June 15, 2019 1 .9%Canada Housing Trust, 1 .85%, December 15, 2016 1 .6%Canada Housing Trust, 2 .35%, December 15, 2018 1 .5%Canada Housing Trust, 2 .05%, June 15, 2018 1 .4%Government of Canada, 5 .75%, June 1, 2033 1 .4%

BEUTEL GOODMAN INCOME FUND 40.2%Canada Housing Trust, 2 .05%, June 15, 2017 8 .7%Canada Housing Trust, 1 .70%, December 15, 2017 7 .4%Canada Housing Trust, 1 .85%, December 15, 2016 6 .1%Canada Housing Trust, 2 .75%, June 15, 2016 4 .2%Canada Housing Trust, 2 .05%, June 15, 2018 3 .0%

BLACKROCK CDN US EQUITY INDEX FUND 6.1%Apple 4 .0%Microsoft Corporation 2 .0%Exxon Mobil Corporation 1 .9%Johnson & Johnson 1 .5%General Electric Company 1 .5%

DESJARDINS OVERSEAS EQUITY GROWTH FUND 3.0%Tencent Holdings 4 .9%Inditex 4 .6%Fiat Chrysler Automobiles 4 .5%Baidu, ADR 4 .3%AIA Group 4 .2%

DFS GIF – CONSERVATIVE – MULTI-MANAGERS (cont.)



DESJARDINS OVERSEAS EQUITY VALUE FUND 3.0%Novartis AG 4 .5%Roche Holding AG 4 .4%Japan Tobacco Inc . 3 .9%British American Tobacco 3 .9%Nestlé 3 .6%

FIDELITY TRUE NORTH ® FUND 2.7%Toronto-Dominion Bank 7 .2%Loblaw Companies 4 .6%Valeant Pharmaceuticals International 4 .1%Manulife Financial Corporation 4 .0%Canadian National Railway Company 3 .1%

BLACKROCK ACTIVE CANADIAN EQUITY DC FUND 2.7%Royal Bank of Canada 6 .5%Toronto-Dominion Bank 6 .3%Valeant Pharmaceuticals International 5 .6%Scotiabank 3 .9%Manulife Financial Corporation 3 .3%

FRANKLIN BISSETT CANADIAN EQUITY FUND 2.6%Brookfield Asset Management 5 .8%Canadian National Railway Company 4 .8%Toronto-Dominion Bank 4 .7%Canadian Imperial Bank of Commerce 4 .5%Royal Bank of Canada 4 .4%

TOP FIVE HOLDINGS OF THE UNDERLYING FUNDS – unaudited (cont.)


NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – unaudited

as at June 30, 2015

STRATEGY IN USING FINANCIAL INSTRUMENTS

Investment Objective

To generate a consistent flow of income with an emphasis on the preservation of capital by investing in a number of different fixed income and equity underlying funds .

The principal risk factors of this Fund are interest rate, foreign currency, credit, sovereign, market, special equities and derivatives risk .

Investment StrategyTo invest in a wide array of underlying funds managed by using a multi-manager approach provided by acclaimed fund managers and sub-advisors .

FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT (Note 7)

Hierarchy of Financial Instruments at Fair Value MeasurementThe following tables categorize the Fund’s financial assets fair value measurement according to a three-level hierarchy . The methodology used for valuing securities is not necessarily an indication of the risk associated with investing in those securities . The fair value measurement is described in the “Significant Accounting Policies“ section of Note 2 .

Investment Fair Value Measurement at the End of the Period, within the Following Levels:

As at June 30, 2015 Level 1 Level 2 Level 3 Total$ $ $ $

Financial Assets at FVTPLInvestment Funds 3,107,041 2,958,531 — 6,065,572 TOTAL 3,107,041 2,958,531 — 6,065,572

As at December 31, 2014 Level 1 Level 2 Level 3 Total$ $ $ $


Transfers between Levels 1 and 2During the periods ended June 30, 2015 and December 31, 2014, there were no transfers of securities between Levels 1 and 2 .

Investments Entities (Note 2)Total values of index-based investments, mortgage-backed securities, asset-backed securities, investment funds and limited partnerships in the table “Investment Fair Value Measurement within the Levels” also represent the fair value of investments in structured entities .

FINANCIAL INSTRUMENTS RISKS (Note 7)

Underlying Funds Risk ManagementMonthly, the investment strategy team compares the Funds’ performance to similar funds as well as to the related benchmarks .Quarterly, this team makes an analysis of the Funds’ performance . This analysis includes among others a review of the securities having obtained a greater or lower performance than forecasts, an evaluation of the strategies used as well as a complete analysis of the sector . It also ensures the compliance with the Funds’ investment policies . Furthermore, it examines thoughtfully any change within the organization, such as the recruitment, the departure of key staff or any structure modification .Annually, this team reviews the practices and processes used by the Funds’ managers through an exhaustive questionnaire and periodic meetings .

Currency RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which may be exposed to currency risk . As a result, the Fund may be exposed to currency risk related to the current underlying funds . Detailed disclosure about the currency risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .

DFS GIF – CONSERVATIVE – MULTI-MANAGERS (cont.)



as at June 30, 2015

Interest Rate RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which may be exposed to interest rate risk . As a result, the Fund may be exposed to interest rate risk related to the current underlying funds . Detailed disclosure about the interest rate risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .

Concentration RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to concentration risk . As a result, the Fund is exposed to concentration risk related to the current underlying funds . Detailed disclosure about the concentration risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .

Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying funds . Detailed disclosure about the price risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s best estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, with all other variables held constant, is as follows:

Change in PriceImpact on Net Assets

Attributable to Contract OwnersJune 30, 2015 December 31, 2014

Benchmarks % $ $FTSE TMX Canada Universe (80%) 1 .00 48,205 22,966S&P/TSX (8%) 3 .00 14,461 6,890S&P 500 (6%) 3 .00 10,846 5,167MSCI EAFE Net (6%) 3 .00 10,846 5,167

In practice, actual trading results may differ from these sensitivity analyses and the differences could be significant .

Credit RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which may be exposed to credit risk . As a result, the Fund may be exposed to credit risk related to the current underlying funds . Detailed disclosure about the credit risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .

Liquidity RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to liquidity risk . As a result, the Fund is exposed to liquidity risk related to the current underlying funds . Detailed disclosure about the liquidity risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .For further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .


DFS GIF – MODERATE – MULTI-MANAGERS



As atJune 30

2015December 31

2014$ $


ASSETSCurrent AssetsCash 63,523 29,728 Investments at fair value through profit


9,422,598 5,383,533

LIABILITIESCurrent LiabilitiesAccrued expenses 18,545 10,249 Withdrawals payable 21,319 2,721 Payable for securities purchased 97,251 9,443

137,115 22,413




2015 2014*(6 months) (5 months)

$ $


Net realized gain (loss) on investments 18,117 28 Net unrealized gain (loss) on investments 32,881 6,434

163,711 21,599


94,221 6,964 Withholding taxes 1,845 —

96,066 6,964




Average number of units 1,351,439 142,371












PremiumsSeries 6 4,441,780 1,425,008 Series 7 967 1,001

4,442,747 1,426,009

WithdrawalsSeries 6 (586,027) (6,509)Series 7 (2) —

(586,029) (6,509)

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS, END OF PERIOD 9,285,483 1,434,135


2015 2014*(6 months) (5 months)

$ $



Adjustments for:Net realized gain (loss) (18,117) (28)Net unrealized gain (loss) (32,881) (6,434)

Proceeds from sale/ maturity of securities 460,873 4,022

Investments purchased (4,232,091) (1,409,037)Receivable for securities sold (5,949) —Accrued expenses 8,296 2,843 Payable for securities purchased 87,808 80,384

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES (3,664,416) (1,313,615)

CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 4,265,642 1,352,005 Amounts paid on withdrawals (567,431) (5,865)

NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 3,698,211 1,346,140

Increase (decrease) in cash/bank overdraft 33,795 32,525

Cash (bank overdraft), beginning of period 29,728 —

CASH (BANK OVERDRAFT), END OF PERIOD 63,523 32,525





as at June 30, 2015

Number of Units Cost

Fair Value

$ $

INVESTMENT FUNDS (98.4%)Beutel Goodman Income Fund, I-Class 237,428 2,986,295 2,956,890 BlackRock Active Canadian Equity DC Fund 14,247 460,062 432,246 BlackRock CDN US Equity Index Fund, Class D 59,941 912,961 978,654 Desjardins Overseas Equity Growth Fund, I-Class 23,912 446,926 482,429 Desjardins Overseas Equity Value Fund, I-Class 31,539 470,612 472,339 DGIA Canadian Bond Fund 289,294 2,958,354 2,964,745 Fidelity True North® Fund, Series O 9,121 417,388 427,072 Franklin Bissett Canadian Equity Fund, Series O 3,182 430,625 419,683


OTHER NET ASSETS (1.6%) 151,425

NET ASSETS (100%) 9,285,483








DFS GIF – MODERATE – MULTI-MANAGERS (cont.)



as at June 30, 2015



To generate income while leaving room for some capital appreciation by investing in a number of different fixed income and equity underlying funds .















DFS GIF – MODERATE – MULTI-MANAGERS (cont.)



as at June 30, 2015


Concentration Risk

As at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to concentration risk . As a result, the Fund is exposed to concentration risk related to the current underlying funds . Detailed disclosure about the concentration risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .




Benchmarks % $ $FTSE TMX Canada Universe (65%) 1 .00 60,356 34,847S&P/TSX (14%) 3 .00 38,999 22,517S&P 500 (10 .5%) 3 .00 29,249 16,888MSCI EAFE Net (10 .5%) 3 .00 29,249 16,888







As atJune 30

2015December 31

2014$ $



or loss (FVTPL) 16,540,092 9,557,197 Premiums receivable 117,823 25,503

16,739,954 9,640,486


109,154 43,803




2015 2014*(6 months) (5 months)

$ $



335,928 42,421

EXPENSESManagement fees and guarantee charge 155,489 12,170 Operating expenses 15,060 1,082


175,327 13,252









DFS GIF – BALANCED – MULTI-MANAGERS








PremiumsSeries 6 6,765,443 2,336,922 Series 7 605,227 1,001

7,370,670 2,337,923


(497,154) (19,944)



2015 2014*(6 months) (5 months)

$ $




Proceeds from sale/ maturity of investments 425,431 65,781

Investments purchased (7,271,075) (2,387,516)Receivable for securities sold — (1,750)Accrued expenses 15,519 5,250 Payable for securities purchased 39,670 2,258




Increase (decrease) in cash/bank overdraft 24,253 (1,251)


CASH (BANK OVERDRAFT), END OF PERIOD 82,039 (1,251)





as at June 30, 2015


Fair Value

$ $

INVESTMENT FUNDS (99.5%)Beutel Goodman Income Fund, I-Class 330,828 4,161,496 4,120,107 BlackRock Active Canadian Equity DC Fund 36,638 1,186,706 1,111,567 BlackRock CDN US Equity Index Fund, Class D 154,344 2,354,049 2,519,961 Desjardins Overseas Equity Growth Fund, I-Class 61,809 1,154,145 1,246,997 Desjardins Overseas Equity Value Fund, I-Class 81,539 1,224,090 1,221,136 DGIA Canadian Bond Fund 403,129 4,124,514 4,131,361 Fidelity True North® Fund, Series O 23,581 1,080,722 1,104,174 Franklin Bissett Canadian Equity Fund, Series O 8,222 1,116,800 1,084,789



NET ASSETS (100%) 16,630,800








DFS GIF – BALANCED – MULTI-MANAGERS (cont.)



as at June 30, 2015



To provide investors with an attractive balance of current income and capital appreciation by investing in a number of different fixed income and equity underlying funds .















DFS GIF – BALANCED – MULTI-MANAGERS (cont.)



as at June 30, 2015











DFS GIF – GROWTH – MULTI-MANAGERS



As atJune 30

2015December 31

2014$ $




10,381,484 5,351,447


87,462 60,966




2015 2014*(6 months) (5 months)

$ $



199,041 41,615



106,221 11,439
















PremiumsSeries 6 5,300,251 1,710,206 Series 7 14,698 1,001

5,314,949 1,711,207


(404,228) (3,267)



2015 2014*(6 months) (5 months)

$ $





Investments purchased (5,108,966) (1,742,691)Accrued expenses 12,373 4,045 Payable for securities purchased 9,082 28,396











as at June 30, 2015


Fair Value

$ $

INVESTMENT FUNDS (99.4%)Beutel Goodman Income Fund, I-Class 143,098 1,799,661 1,782,123 BlackRock Active Canadian Equity DC Fund 29,483 955,845 894,467 BlackRock CDN US Equity Index Fund, Class D 124,410 1,923,118 2,031,243 Desjardins Overseas Equity Growth Fund, I-Class 49,563 941,662 999,931 Desjardins Overseas Equity Value Fund, I-Class 65,451 990,590 980,184 DGIA Canadian Bond Fund 174,357 1,785,904 1,786,847 Fidelity True North® Fund, Series O 18,923 871,659 886,059 Franklin Bissett Canadian Equity Fund, Series O 6,604 896,381 871,267



NET ASSETS (100%) 10,294,022








DFS GIF – GROWTH – MULTI-MANAGERS (cont.)



as at June 30, 2015



To emphasize appreciation of capital while still generating some income by investing in a number of different fixed income and equity underlying funds .


Investment Strategy

To invest in a wide array of underlying funds managed by using a multi-manager approach provided by acclaimed fund managers and sub-advisors .













DFS GIF – GROWTH – MULTI-MANAGERS (cont.)



as at June 30, 2015


Concentration Risk

As at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to concentration risk . As a result, the Fund is exposed to concentration risk related to the current underlying funds . Detailed disclosure about the concentration risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .




Benchmarks % $ $FTSE TMX Canada Universe (35%) 1 .00 36,029 18,517S&P/TSX (26%) 3 .00 80,293 41,266S&P 500 (19 .5%) 3 .00 60,220 30,949MSCI EAFE Net (19 .5%) 3 .00 60,220 30,949



Liquidity RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to liquidity risk . As a result, the Fund is exposed to liquidity risk related to the current underlying funds . Detailed disclosure about the liquidity risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .

For further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .




As atJune 30

2015December 31

2014$ $




1,610,607 1,030,461

LIABILITIESCurrent LiabilitiesAccrued expenses 3,491 2,271 Withdrawals payable 53,992 128 Payable for securities purchased 18,544 209

76,027 2,608




2015 2014*(6 months) (5 months)

$ $



49,809 13,369



17,879 3,601






from Operations 920 27 - per unit 0.24 0 .14



DFS GIF – MAXIMUM GROWTH – MULTI-MANAGERS








PremiumsSeries 6 541,167 465,145 Series 7 — 1,001

541,167 466,146

WithdrawalsSeries 6 (66,370) (1,049)Series 7 — —

(66,370) (1,049)

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS, END OF PERIOD 1,534,580 474,865


2015 2014*(6 months) (5 months)

$ $





Investments purchased (583,991) (471,338)Accrued expenses 1,220 1,103 Payable for securities purchased 18,335 118

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES (489,856) (464,445)

CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 520,633 466,011 Amounts paid on withdrawals (12,506) (1,037)

NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 508,127 464,974

Increase (decrease) in cash/bank overdraft 18,271 529


CASH (BANK OVERDRAFT), END OF PERIOD 20,028 529





as at June 30, 2015


Fair Value

$ $

INVESTMENT FUNDS (102.1%)Beutel Goodman Income Fund, I-Class 12,563 157,247 156,449 BlackRock Active Canadian Equity DC Fund 5,531 179,964 167,800 BlackRock CDN US Equity Index Fund, Class D 23,317 346,662 380,686 Desjardins Overseas Equity Growth Fund, I-Class 9,353 174,192 188,700 Desjardins Overseas Equity Value Fund, I-Class 12,364 187,954 185,163 DGIA Canadian Bond Fund 15,306 155,412 156,857 Fidelity True North® Fund, Series O 3,574 161,515 167,356 Franklin Bissett Canadian Equity Fund, Series O 1,247 167,849 164,550



NET ASSETS (100%) 1,534,580








DFS GIF – MAXIMUM GROWTH – MULTI-MANAGERS (cont.)



as at June 30, 2015



To maximize the appreciation of capital while still generating some income by investing in a number of different fixed income and equity underlying funds .







Financial Assets at FVTPLInvestment Funds 862,218 705,343 — 1,567,561 TOTAL 862,218 705,343 — 1,567,561


Financial Assets at FVTPLInvestment Funds 559,982 466,238 — 1,026,220 TOTAL 559,982 466,238 — 1,026,220






DFS GIF – MAXIMUM GROWTH – MULTI-MANAGERS (cont.)



as at June 30, 2015











Individual Funds


Income

DFS GIF – MONEY MARKET



As atJune 30

2015December 31

2014$ $


ASSETSCurrent AssetsCash — 122,167 Investments at fair value through profit


30,011,231 28,500,886

LIABILITIESCurrent LiabilitiesBank overdraft 47,740 —Accrued expenses 33,886 32,231 Withdrawals payable 259,418 200,985 Payable for securities purchased — 112,980

341,044 346,196


NET ASSETS PER UNITSeries 1 6.64 6 .64 Series 3 6.65 6 .65 Series 5 6.82 6 .81 Series 6 5.02 5 .01 Series 7 5.06 5 .03 Series IGP 10.00 10 .00

STATEMENT OF COMPREHENSIVE INCOME – unauditedSix-month Periods Ended June 30

2015 2014$ $

INCOMEInterest for attribution purposes 380,260 420,997 Revenue from securities lending

and repurchase transactions — 442 Changes in fair value:

Net realized gain (loss) on investments 173,668 (129,996)Net unrealized gain (loss) on investments (319,452) (56,815)

234,476 234,628


201,736 206,637



from Operations (216) (246)- per unit — —



from Operations (1,281) (1,807)- per unit — —




Average number of units 2,899,706 3,481,538

SERIES 6*Increase (Decrease) in Net Assets




from Operations 4,278 13 - per unit 0.02 —


SERIES IGP**Increase (Decrease) in Net Assets

from Operations 388 — - per unit — —

Average number of units 169,430 —

* Beginning of operations in February 2014.** Beginning of operations in November 2014.




Six-month Periods Ended June 302015 2014

$ $

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS, BEGINNING OF PERIOD 28,154,690 29,780,657 Increase (Decrease) in Net Assets


PremiumsSeries 1 600 978 Series 3 461,998 701,081 Series 5 4,196,513 5,133,447 Series 6* 4,704,081 1,319,913 Series 7* 989,659 168,517 Series IGP** 189,807 —

10,542,658 7,323,936

WithdrawalsSeries 1 (69,385) (33,248)Series 3 (330,712) (652,318)Series 5 (5,792,309) (6,631,850)Series 6* (1,524,245) (466,544)Series 7* (982,399) (166,716)Series IGP** (360,851) —

(9,059,901) (7,950,676)


STATEMENT OF CASH FLOWS – unauditedSix-month Periods Ended June 30

2015 2014$ $



Adjustments for:Net realized gain (loss) (173,668) 129,996 Net unrealized gain (loss) 319,452 56,815

Proceeds from sale/ maturity of investments 4,490,006 57,678,447

Investments purchased (5,986,246) (57,069,937)Receivable for securities sold (20,821) —Cash guarantee received

for repurchase transactions — 101,781 Interest, dividends

and other receivables — 108,195 Accrued expenses 1,655 (1,438)Commitments related to repurchase

transactions — (101,781)Payable for securities purchased (112,980) —

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES (1,449,862) 930,069

CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 10,281,423 6,764,014 Amounts paid on withdrawals (9,001,468) (7,918,778)

NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 1,279,955 (1,154,764)

Increase (decrease) in cash/bank overdraft (169,907) (224,695)

Cash (bank overdraft), beginning of period 122,167 205,493

CASH (BANK OVERDRAFT), END OF PERIOD (47,740) (19,202)

SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest received — 529,192





Fair Value

$ $

INVESTMENT FUND (100.0%)DGIA Money Market Fund 3,047,541 28,959,817 29,677,720



NET ASSETS (100%) 29,670,187


TOP 25 HOLDINGS OF THE UNDERLYING FUND – unaudited


Bank of Montreal, Floating Rate, April 10, 2017 8 .5%Manulife Financial Corporation, 4 .079%, August 20, 2015 7 .6%Toronto-Dominion Bank, 3 .367%, November 2, 2020 7 .5%OMERS Realty Corporation, 4 .75%, May 5, 2016 7 .3%Daimler Canada Finance, 2 .23%, April 18, 2016 7 .1%Scotiabank, 3 .61%, February 22, 2016 4 .8%National Bank of Canada, 2 .05%, January 11, 2016 4 .8%National Bank of Canada, 3 .58%, April 26, 2016 4 .4%Canadian Imperial Bank of Commerce, Floating Rate, June 14, 2016 4 .2%Royal Bank of Canada, Floating Rate, November 2, 2020 4 .0%Volkswagen Credit Canada, Floating rate, April 3, 2017 3 .8%BMW Canada, Floating Rate, February 24, 2017 3 .8%Volkswagen Credit Canada, Floating rate, August 19, 2015 3 .4%BMW Canada, 2 .11%, May 26, 2016 2 .9%Manitoba Treasury Bills, August 12, 2015 2 .8%Daimler Canada Finance, 2 .33%, September 14, 2015 2 .7%OMERS Finance Trust, Notes, August 17, 2015 1 .9%Ontario Hydro, Stripped, February 18, 2016 1 .6%Province of Manitoba, Stripped, March 5, 2016 1 .4%CI Investments, 3 .94%, December 14, 2015 1 .4%GE Capital Canada Funding Company, Stripped, June 1, 2016 1 .4%Ontario Treasury Bills, August 12, 2015 1 .4%Province of Ontario, Stripped, July 13, 2016 1 .0%Scotiabank, Floating Rate, March 11, 2016 0 .9%Royal Bank of Canada, Notes, July 31, 2015 0 .9%

Income

DFS GIF – MONEY MARKET (cont.)



as at June 30, 2015


Investment ObjectiveTo provide a higher level of interest income than can normally be obtained from savings accounts, combined with a high level of liquidity and safety of capital .

Investment StrategyTo invest primarily in Canadian government treasury bills and in bankers’ acceptances, which have a maximum maturity of 12 months, and the dollar-weighted average term to maturity of the portfolio does not exceed 180 days .





Financial Assets at FVTPLInvestment Funds — 29 677 720 — 29 677 720 TOTAL — 29 677 720 — 29 677 720


Financial Assets at FVTPLInvestment Funds — 28 327 264 — 28 327 264 TOTAL — 28 327 264 — 28 327 264




Underlying Fund Risk Management Monthly, the investment strategy team compares the Fund’s performance to similar funds as well as to the related benchmarks .Quarterly, this team makes an analysis of the Fund’s performance . This analysis includes among others a review of the securities having obtained a greater or lower performance than forecasts, an evaluation of the strategies used as well as a complete analysis of the sector . It also ensures the compliance with the Fund’s investment policies . Furthermore, it examines thoughtfully any change within the organization, such as the recruitment, the departure of key staff or any structure modification .Annually, this team reviews the practices and processes used by the Fund’s managers through an exhaustive questionnaire and periodic meetings .

Currency RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to currency risk . As a result, the Fund may be exposed to currency risk related to the current underlying fund . Detailed disclosure about the currency risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .



as at June 30, 2015

Interest Rate RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to interest rate risk . As a result, the Fund may be exposed to interest rate risk related to the current underlying fund . Detailed disclosure about the interest rate risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .

Concentration RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to concentration risk . As a result, the Fund is exposed to concentration risk related to the current underlying fund . Detailed disclosure about the concentration risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .

Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s best estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in the benchmark, with all other variables held constant, is as follows:



Benchmark % $ $FTSE TMX Canada 91 Day Treasury Bills 0 .25 74,175 70,387


Credit RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to credit risk . As a result, the Fund may be exposed to credit risk related to the current underlying fund . Detailed disclosure about the credit risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .

Liquidity RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to liquidity risk . As a result, the Fund is exposed to liquidity risk related to the current underlying fund . Detailed disclosure about the liquidity risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .For further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .

Income

DFS GIF – MONEY MARKET (cont.)


Income

DFS GIF – INCOME – BEUTEL GOODMAN



As atJune 30

2015December 31

2014$ $


ASSETSCurrent AssetsCash 11,321 —Investments at fair value through profit

or loss (FVTPL) 48,337,562 52,293,381 Premiums receivable 67,718 38,474 Receivable for securities sold 40,129 50,521

48,456,730 52,382,376

LIABILITIESCurrent LiabilitiesBank overdraft — 18,765 Accrued expenses 80,332 86,878 Withdrawals payable 247,381 116,682 Payable for securities purchased — 19,434

327,713 241,759


NET ASSETS PER UNITSeries 3 7.69 7 .70 Series 5 8.21 8 .18 Series 6 5.16 5 .14 Series 7 5.19 5 .15


2015 2014$ $

INCOMEInterest for attribution purposes 858,918 948,730 Changes in fair value:

Net realized gain (loss) on investments 325,257 (42,430)Net unrealized gain (loss) on investments (437,657) 1,061,348

746,518 1,967,648


503,945 550,032

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS 242,573 1,417,616


from Operations 247 119,362 - per unit — 0 .17



from Operations 245,257 1,292,709 - per unit 0.05 0 .21



from Operations (2,610) 5,531 - per unit (0.01) 0 .07



from Operations (321) 14 - per unit (0.02) 0 .07







$ $


from operations attributable to contract owners 242,573 1,417,616

PremiumsSeries 3 154,370 94,124 Series 5 1,737,523 2,427,191 Series 6* 1,121,443 755,114 Series 7* 130,597 1,001

3,143,933 3,277,430

WithdrawalsSeries 3 (481,644) (650,079)Series 5 (6,550,733) (6,322,143)Series 6* (347,559) (32,908)Series 7* (18,170) —

(7,398,106) (7,005,130)



2015 2014$ $



Adjustments for:Net realized gain (loss) (325,257) 42,430 Net unrealized gain (loss) 437,657 (1,061,348)


Investments purchased (401,262) (569,351)Receivable for securities sold 10,392 84,277 Accrued expenses (6,546) (4,904)Payable for securities purchased (19,434) —

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 4,182,804 3,764,065


NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (4,152,718) (3,697,209)


Cash (bank overdraft), beginning of period (18,765) (81,679)


Income

DFS GIF – INCOME – BEUTEL GOODMAN (cont.)





Fair Value

$ $

INVESTMENT FUND (100.4%)Beutel Goodman Income Fund, I-Class 3,881,322 46,835,583 48,337,562



NET ASSETS (100%) 48,129,017




Canada Housing Trust, 2 .05%, June 15, 2017 8 .7%Canada Housing Trust, 1 .70%, December 15, 2017 7 .4%Canada Housing Trust, 1 .85%, December 15, 2016 6 .1%Canada Housing Trust, 2 .75%, June 15, 2016 4 .2%Canada Housing Trust, 2 .05%, June 15, 2018 3 .0%Province of Ontario, 2 .60%, June 2, 2025 2 .7%Canada Housing Trust, 2 .75%, December 15, 2015 2 .3%Province of Ontario, 3 .15%, June 2, 2022 1 .6%Province of Ontario, 3 .50%, June 2, 2024 1 .6%Province of British Columbia, 2 .85%, June 18, 2025 1 .6%Toronto-Dominion Bank, 1 .824%, April 3, 2017 1 .3%Canadian Imperial Bank of Commerce, 2 .22%, March 7, 2018 1 .3%Province of Ontario, 2 .85%, June 2, 2023 1 .2%Province of Manitoba, 2 .45%, June 2, 2025 1 .1%TransCanada Pipelines, 8 .29%, February 5, 2026 1 .1%Nova Scotia Power, 5 .61%, June 15, 2040 1 .1%Westcoast Energy, 3 .28%, January 15, 2016 1 .0%Enbridge, 5 .33%, April 6, 2040 1 .0%Altalink, 5 .381%, March 26, 2040 1 .0%Province of Ontario, 4 .70%, June 2, 2037 1 .0%Royal Bank of Canada, 2 .364%, September 21, 2017 0 .9%Province of British Columbia, 3 .25%, December 18, 2021 0 .8%Province of British Columbia, 6 .35%, June 18, 2031 0 .8%Toronto-Dominion Bank, 2 .563%, June 24, 2020 0 .8%Royal Bank of Canada, 2 .58%, April 13, 2017 0 .8%



as at June 30, 2015


Investment ObjectiveTo provide a high yield and reasonable stability of capital . This Fund will normally provide higher returns and better potential for capital gains and also some variability of performance during periods of rapidly changing interest rates . Income is reinvested to enhance long-term returns through compounding .

Investment StrategyTo include mainly investment grade Canadian federal, provincial government and corporate bonds, debentures, and short-term notes . The Fund may overweight its investment in high quality corporate and provincial issues which tend to perform better over time .





Financial Assets at FVTPLInvestment Funds 48,337,562 — — 48,337,562 TOTAL 48,337,562 — — 48,337,562






Underlying Fund Risk ManagementMonthly, the investment strategy team compares the Fund’s performance to similar funds as well as to the related benchmarks .Quarterly, this team makes an analysis of the Fund’s performance . This analysis includes among others a review of the securities having obtained a greater or lower performance than forecasts, an evaluation of the strategies used as well as a complete analysis of the sector . It also ensures the compliance with the Fund’s investment policies . Furthermore, it examines thoughtfully any change within the organization, such as the recruitment, the departure of key staff or any structure modification .Annually, this team reviews the practices and processes used by the Fund’s managers through an exhaustive questionnaire and periodic meetings .


Income

DFS GIF – INCOME – BEUTEL GOODMAN (cont.)



as at June 30, 2015



Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in the benchmark, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmark, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .



Benchmark % $ $FTSE TMX Canada Universe 1 .00 359,276 378,727





Income

DFS GIF – INCOME – FIERA



As atJune 30

2015December 31

2014$ $


ASSETSCurrent AssetsInvestments at fair value through profit

or loss (FVTPL) 86,597,962 80,835,560 Investments at fair value through profit

or loss (FVTPL) pledged as collateral 16,713,216 28,586,623 Premiums receivable 130,960 203,302 Receivable for securities sold 8,389,622 2,305,571 Cash guarantee received for repurchase

transactions 15,846,248 28,381,328 Interest, dividends and other receivables 495,401 619,634

128,173,409 140,932,018

LIABILITIESCurrent LiabilitiesBank overdraft 87,778 15,642 Accrued expenses 178,552 186,064 Withdrawals payable 451,657 303,797 Payable for securities purchased 5,837,502 2,281,104 Commitments related to repurchase

transactions 15,846,248 28,381,328 22,401,737 31,167,935


NET ASSETS PER UNITSeries 1 10.19 10 .11 Series 3 10.72 10 .63 Series 5 11.23 11 .09 Series 6 5.29 5 .22 Series 7 5.33 5 .24


2015 2014$ $

INCOMEInterest for attribution purposes 1,694,341 2,038,686 Revenue from securities lending

and repurchase transactions 10,058 11,618 Changes in fair value:

Net realized gain (loss) on investments 2,361,082 2,459,402 Net unrealized gain (loss) on investments (1,594,927) 1,731,613

2,470,554 6,241,319


1,111,871 1,233,883

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS 1,358,683 5,007,436








from Operations 1,235,823 4,501,508 - per unit 0.15 0 .45











STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS – unauditedSix-month Periods Ended June 30

2015 2014$ $


from operations attributable to contract owners 1,358,683 5,007,436

PremiumsSeries 1 43,080 198,330 Series 3 402,633 333,763 Series 5 3,201,716 3,593,047 Series 6* 1,726,992 508,396 Series 7* 93,839 1,001

5,468,260 4,634,537

WithdrawalsSeries 1 (180,108) (497,488)Series 3 (1,157,094) (1,780,555)Series 5 (9,137,035) (21,924,164)Series 6* (344,424) (14,223)Series 7* (693) —

(10,819,354) (24,216,430)



2015 2014$ $



Adjustments for:Net realized gain (loss) (2,361,082) (2,459,402)Net unrealized gain (loss) 1,594,927 (1,731,613)


Investments purchased (118,639,939) (120,276,954)Receivable for securities sold (6,084,051) 3,292,693 Cash guarantee received

for repurchase transactions 12,535,080 11,663,119 Interest, dividends and

other receivables 124,233 205,458 Accrued expenses (7,512) (28,397)Commitments related to

repurchase transactions (12,535,080) (11,663,119)Payable for securities purchased 3,556,398 (2,143,910)




Effect of exchange rate changes on foreign cash 74 3

Increase (decrease) in cash/bank overdraft (72,136) 1,003,217



SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest received 1,818,573 2,244,142




as at June 30, 2015 Par Fair Value Cost Value $ $

BONDS (94.8%)

Government of Canada (18.7%)Broadcast Center Trust 7 .530%, 2027-05-01 CAD 190,306 187,781 253,499 Government of Canada 1 .250%, 2017-08-01 CAD 4,245,000 4,306,714 4,312,106 1 .500%, 2023-06-01* CAD 1,799,000 1,803,833 1,802,313 2 .250%, 2025-06-01* CAD 3,008,000 3,125,624 3,162,795 5 .750%, 2033-06-01* CAD 130,000 208,715 198,944 3 .500%, 2045-12-01* CAD 5,647,000 6,983,846 7,112,675 PSP Capital Series 7, 3 .290%, 2024-04-04 CAD 345,000 330,135 371,404 Royal Office Finance Series A, 5 .209%, 2032-11-12 CAD 2,020,105 1,832,094 2,510,619

18,778,742 19,724,355

Provincial Governments and Crown Corporations (33.4%)New Brunswick (F-M) Project Company 6 .470%, 2027-11-30 CAD 486,395 509,485 610,446 Ontario Infrastructure 4 .700%, 2037-06-01 CAD 80,000 71,858 94,630 Ontario School Boards Financing Corporation Series 00A1, 7 .200%, 2025-06-09 CAD 2,628,815 2,805,768 3,341,627 Series 01A3, 6 .550%, 2026-10-19 CAD 1,643 1,683 2,046 Private Placement, Series 06A1, 5 .070%, 2031-04-18 CAD 540,367 484,775 620,350 Ornge Issuer Trust 5 .727%, 2034-06-11 CAD 277,520 254,101 325,279 Province of Alberta 3 .900%, 2033-12-01 CAD 1,440,000 1,360,661 1,623,248 3 .450%, 2043-12-01 CAD 526,000 460,310 556,036 Province of British Columbia 3 .200%, 2044-06-18 CAD 640,000 565,375 651,884 Province of Ontario 4 .400%, 2019-06-02 CAD 1,632,000 1,708,860 1,833,667 3 .150%, 2022-06-02* CAD 1,384,000 1,325,294 1,493,301 2 .850%, 2023-06-02 CAD 8,164,000 7,368,657 8,567,883 3 .500%, 2024-06-02 CAD 3,625,000 3,612,133 3,962,278 2 .600%, 2025-06-02 CAD 2,056,000 2,134,078 2,081,323 3 .500%, 2043-06-02 CAD 302,000 268,752 318,606 3 .450%, 2045-06-02 CAD 1,402,000 1,298,113 1,472,405 Province of Québec 4 .500%, 2019-12-01 CAD 2,990,000 3,142,991 3,402,569 2 .750%, 2025-09-01 CAD 1,133,000 1,197,362 1,158,604 4 .250%, 2043-12-01* CAD 796,000 777,244 943,433 3 .500%, 2045-12-01 CAD 969,000 834,221 1,018,680 TCHC Issuer Trust 4 .877%, 2037-05-11 CAD 287,000 238,639 340,982 Series B, 5 .395%, 2040-02-22 CAD 690,000 637,841 897,769

31,058,201 35,317,046

* Securities pledged as collateral, in part or in whole, through the securities lending program.

DFS GIF – INCOME – FIERA (cont.)

Income




BONDS (cont.)

Municipalities and Semi-Public Institutions (6.7%)Municipality of St-Lambert-de-Lauzon 2 .600%, 2015-11-16 CAD 1,400,000 1,264,211 1,405,362 Société de transport de l’Outaouais 3 .000%, 2015-12-07 CAD 400,000 365,810 402,472 Town of Brome Lake 2 .500%, 2015-11-09 CAD 200,000 179,798 200,955 Town of Rosemère 2 .700%, 2015-11-23 CAD 1,000,000 907,050 1,004,810 Ville de Beloeil 3 .000%, 2015-12-07 CAD 1,000,000 914,480 1,006,210 Ville de Blainville 2 .500%, 2015-11-09 CAD 525,000 471,966 527,515 Ville de Mont-Saint-Hilaire 3 .000%, 2015-11-30 CAD 960,000 875,728 966,163 Ville de Saint-Georges 2 .500%, 2015-11-09 CAD 550,000 494,446 552,597 Ville de Saint-Jérôme 3 .000%, 2015-12-08 CAD 1,013,000 920,138 1,021,092

6,393,627 7,087,176

Corporations (36.0%)Bank of Montreal 2 .960%, 2016-08-02 CAD 955,000 895,190 973,869 2 .390%, 2017-07-12 CAD 1,680,000 1,586,377 1,719,298 2 .240%, 2017-12-11 CAD 1,500,000 1,423,567 1,534,410 3 .120%, (floating rate from 2019-09-19), 2024-09-19* CAD 687,000 672,406 710,827 Blackbird Infrastructure 407 General Partners 1 .713%, (floating rate from 2020-01-08), 2021-10-08 CAD 229,000 227,216 229,043 Caisse centrale Desjardins 2 .443%, 2019-07-17 CAD 1,090,000 1,045,662 1,128,363 Canadian Imperial Bank of Commerce 1 .750%, 2016-06-01 CAD 277,000 265,172 278,798 2 .350%, 2017-10-18* CAD 3,635,000 3,473,468 3,724,439 2 .350%, 2019-06-24 CAD 56,000 53,675 57,951 3 .000%, (floating rate from 2019-10-28), 2024-10-28* CAD 708,000 709,676 729,669 Canadian Utilities 4 .543%, 2041-10-24 CAD 230,000 212,567 254,892 Capital City Link Series A, 4 .386%, 2046-03-31 CAD 847,000 759,585 891,428 Cominar Real Estate Investment Trust Series 9, 4 .164%, 2022-06-01 CAD 645,000 645,000 649,997 CSS (FSCC) Partnership 6 .915%, 2042-07-31 CAD 89,420 101,312 119,389 Enbridge 3 .940%, 2023-06-30 CAD 425,000 401,286 442,794 7 .220%, 2030-07-24 CAD 150,000 157,438 189,382 7 .200%, 2032-06-18 CAD 546,000 646,043 697,407 Health Montréal Collective, Private Placement Series 144A, 6 .721%, 2049-09-30 CAD 1,370,000 1,575,576 1,801,985 Hospital Infrastructure Series A, 5 .439%, 2045-01-31 CAD 630,000 579,728 749,875





Corporations (cont.)Integrated Team Solutions SJHC 5 .946%, 2042-11-30 CAD 205,000 189,479 253,654 North West Redwater Partnership Series A, 3 .200%, 2024-07-22 CAD 505,000 484,491 522,515 Northland Power Series A, 4 .958%, 2032-12-31 CAD 521,745 497,343 593,605 Plenary Properties 6 .288%, 2044-01-31 CAD 847,495 822,428 1,109,071 Reliance Series 2, 5 .187%, 2019-03-15 CAD 394,000 371,084 423,162 Royal Bank of Canada 2 .364%, 2017-09-21 CAD 1,277,000 1,206,719 1,306,730 2 .260%, 2018-03-12 CAD 515,000 486,798 527,124 2 .820%, 2018-07-12 CAD 510,000 487,943 531,368 2 .860%, 2021-03-04 CAD 8,000 7,670 8,362 3 .040%, (floating rate from 2019-07-17), 2024-07-17 CAD 580,000 556,195 600,000 2 .990%, (floating rate from 2019-12-06), 2024-12-06 CAD 1,300,000 1,225,418 1,356,341 2 .480%, (floating rate from 2020-06-04), 2025-06-04 CAD 895,000 894,830 893,342 Scotiabank 2 .370%, 2018-01-11 CAD 1,785,000 1,701,371 1,831,038 2 .242%, 2018-03-22 CAD 916,000 865,789 937,256 3 .270%, 2021-01-11 CAD 1,155,000 1,111,928 1,231,322 2 .898%, (floating rate from 2017-08-03), 2022-08-03 CAD 859,000 819,724 882,994 SNC-Lavalin Innisfree McGill Finance 6 .632%, 2044-06-30 CAD 406,591 429,211 531,265 Teranet Income Fund 5 .754%, 2040-12-17 CAD 780,000 756,023 865,833 6 .100%, 2041-06-17 CAD 964,000 917,870 1,099,711 Toronto-Dominion Bank 2 .447%, 2019-04-02 CAD 1,030,000 987,994 1,067,279 2 .563%, 2020-06-24 CAD 325,000 311,762 336,346 3 .226%, 2024-07-24 CAD 468,000 451,175 488,371 2 .692%, (floating rate from 2020-06-24), 2025-06-24 CAD 516,000 516,000 519,734 4 .779%, (floating rate from 2016-12-14), 2105-12-14 CAD 125,000 91,908 130,721 5 .763%, (floating rate from 2017-12-18), 2106-12-18 CAD 1,906,000 1,986,221 2,096,361 TransCanada PipeLines 6 .890%, 2028-08-07 CAD 500,000 409,578 646,388 8 .050%, 2039-02-17 CAD 278,000 413,856 429,513

34,431,752 38,103,222

TOTAL BONDS 90,662,322 100,231,799


Income




MORTGAGE-BACKED SECURITIES (1.6%)Column Canada Issuer Corporation 4 .934%, 2016-09-15 CAD 322,000 346,941 332,857 Merrill Lynch Financial Assets 4 .826%, 2016-02-12 CAD 400,000 348,884 405,265 4 .642%, 2016-10-12 CAD 670,000 295,844 330,439 Series 2007-CA22, Class A3, 4 .878%, 2017-04-12 CAD 250,000 229,000 263,329 Merrill Lynch Mortgage Loans 4 .711%, 2016-11-12 CAD 1,625,000 269,593 298,490 Real Estate Asset Liquidity Trust 4 .449%, 2016-08-12 CAD 500,000 83,982 93,171

TOTAL MORTGAGE-BACKED SECURITIES 1,574,244 1,723,551

MONEY MARKET SECURITIES (0.7%)Canada Treasury Bills 2015-09-10 CAD 145,000 144,810 144,810 Ontario Treasury Bills 2015-08-19 CAD 550,000 549,280 549,280

TOTAL MONEY MARKET SECURITIES 694,090 694,090

ASSET-BACKED SECURITIES (0.6%)CHIP Mortgage Trust 3 .663%, 2038-09-25 CAD 626,000 598,829 661,738

TOTAL INVESTMENTS (97.7%) 93,529,485 103,311,178

OTHER NET ASSETS (2.3%) 2,460,494

NET ASSETS (100%) 105,771,672




as at June 30, 2015


Investment ObjectiveTo provide above-average interest income with some potential for capital growth by investing primarily in bonds and other interest-bearing instruments of Canadian federal and provincial governments and investment-grade corporations .

Investment StrategyTo place emphasis primarily on medium and long-term maturities . Such maturities normally provide higher returns and better potential for capital gains but also higher variability of performance during periods of rapidly changing interest rates .


Hierarchy of Financial Instruments at Fair Value MeasurementThe following tables categorize the Fund’s financial assets fair value measurement according to a three-level hierarchy . The methodology used for valuing securities is not necessarily an indication of the risk associated with investing in those securities . The fair value measurement is described in the “Significant Accounting Policies” section of Note 2 .



Financial Assets at FVTPLBonds 50,466,932 49,764,867 — 100,231,799 Mortgage-Backed Securities — 1,723,551 — 1,723,551 Asset-Backed Securities — 661,738 — 661,738 Money Market Securities 694,090 — — 694,090 TOTAL 51,161,022 52,150,156 — 103,311,178


Financial Assets at FVTPLBonds 49,751,571 56,464,701 — 106,216,272 Mortgage-Backed Securities — 1,861,862 — 1,861,862 Asset-Backed Securities — 650,031 — 650,031 Money Market Securities 694,018 — — 694,018 TOTAL 50,445,589 58,976,594 — 109,422,183




Currency RiskAs at June 30, 2015 and December 31, 2014, the majority of the Fund’s financial assets and liabilities are denominated in Canadian dollars . As a result, the Fund is not significantly exposed to currency risk .

Interest Rate RiskThe following table summarizes the Fund’s exposure to interest rate risk . It includes the Fund’s financial assets and liabilities at fair value, categorized by the earlier of contractual re-pricing or maturity dates . The table also illustrates the impact on the Net Assets Attributable to Contract Owners, had prevailing interest rates changed by 0 .25%, assuming a parallel shift in the yield curve, with all other variables held constant .


Income



as at June 30, 2015

Less than 1 Year 1 to 5 Years 5 to 10 Years

Greater than 10 Years Total

Impact on Net Assets

Attributable to Contract Owners

$ $ $ $ $ $June 30, 2015 8,377,551 35,114,293 28,126,285 31,605,271 103,223,400 1,855,311

December 31, 2014 7,857,575 48,201,649 18,927,386 34,419,931 109,406,541 1,772,037


Concentration RiskThe following table summarizes the concentration risk, as in percentages of the Net Assets Attributable to Contract Owners:

June 30, 2015 December 31, 2014MARKET SEGMENT % MARKET SEGMENT %Bonds Bonds

Corporations 36 .0 Corporations 40 .7Provincial Governments and Crown Corporations 33 .4 Provincial Governments and Crown Corporations 32 .1Government of Canada 18 .7 Government of Canada 17 .5Municipalities and Semi-Public Institutions 6 .7 Municipalities and Semi-Public Institutions 6 .5

Mortgage-Backed Securities 1 .6 Mortgage-Backed Securities 1 .7Money Market Securities 0 .7 Money Market Securities 0 .6Asset-Backed Securities 0 .6 Asset-Backed Securities 0 .6Other Net Assets 2 .3 Other Net Assets 0 .3TOTAL 100 TOTAL 100

Price RiskThe Fund may trade in financial instruments and take positions in over-the-counter instruments .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in the benchmark, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmark, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .

Change in Price Impact on Net Assets Attributable to

Contract Owners

June 30, 2015 December 31, 2014Benchmark % $ $FTSE TMX Canada Universe 1 .00 1,003,594 1,143,385




as at June 30, 2015

Credit RiskThe Fund’s credit risk is mainly concentrated in fixed-income securities . Their fair values include consideration of the issuers’ creditworthiness and accordingly, represent the Fund’s maximum exposure to credit risk .

The investment grade for Canadian fixed-income securities and money market securities is rated by the Dominion Bond Rating Service (“DBRS”), Standard & Poor’s or Moody’s . The investment grade for foreign fixed-income securities and money market securities is rated by Standard & Poor’s, Moody’s or Fitch . In cases where the credit rating agencies do not agree on a credit rating for fixed-income securities and money market securities, they will be classified following these rules:• If two credit ratings are available, but the ratings are different, the lowest rating is used;• If three credit ratings are available, the most common credit rating is used;• If all three credit rating agencies have different ratings, the middle credit rating is used .The credit rating is then converted to DBRS format . Generally, the greater the credit rating of a security, the lower the probability of it defaulting on its obligations .

Portfolio’s fixed-income securities by credit rating category

Credit rating Percentage of Fixed-Income SecuritiesJune 30, 2015 December 31, 2014

% %AAA 24 24 AA 42 41 A 19 21 BBB 8 7 Not Rated 7 7 TOTAL 100 100

Securities Lending and Repurchase TransactionsAs part of its securities lending and repurchase transactions, the Fund is exposed to counterparty credit risk . The carrying amount of financial assets pledged as collateral for liabilities is:

$June 30, 2015 15,878,198 December 31, 2014 27,220,076

The fair value of the financial assets held as collateral that the fund is permitted to sell or repledge in the absence of default totalled:

$June 30, 2015 10,382,651 December 31, 2014 17,800,940

The fair value of financial assets accepted as collateral which have been sold or repledged totalled:

$June 30, 2015 4,539 December 31, 2014 947,491

These financial assets were received as collateral as part of transactions involving reverse repurchase transactions .

Liquidity RiskFor further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .


Income



as at June 30, 2015

DERECOGNITION OF FINANCIAL ASSETS

Securities lending and repurchase transactionsAs part of transactions involving securities lending or repurchase transactions, the Fund transfers financial assets under terms and conditions providing for their future repurchase . These financial assets remain recognized in the “Investments at fair value through profit or loss pledged as collateral” of the Statement of Financial Position as the Fund retains substantially all the risks and rewards related to these assets .

June 30, 2015 December 31, 2014$ $

Investments at FVTPL pledged as Collateral 16,713,216 28,586,623 Value of Collateral Securities 17,047,481 29,158,490

The Funds require collateral in the form of cash or such other securities as may be acceptable to Desjardins Financial Security and that have an aggregate value of no less than 102% of the loaned securities fair value .

The following table presents the carrying amount and the fair value of financial assets transferred by the Fund but not derecognized as well as the related liabilities recognized in “Commitments related to repurchase transactions” and “Commitments related to securities lending” of the Statement of Financial Position .

Fair Value*June 30, 2015 December 31, 2014

$ $Financial Assets 15,878,198 27,220,076 Related Liabilities 15,842,856 27,434,695

* The fair value equals carrying amount .


DFS GIF – DIVERSIFIED INCOME – QUOTENTIAL

Balanced and Asset Allocation



As atJune 30

2015December 31

2014$ $



or loss (FVTPL) 191,922,358 187,413,795 Premiums receivable 123,405 144,666 Receivable for securities sold — 47,667

192,099,864 187,606,128

LIABILITIESCurrent LiabilitiesBank overdraft — 28,347 Accrued expenses 463,651 450,353 Withdrawals payable 523,936 288,410 Payable for securities purchased 77,631 109,796

1,065,218 876,906


NET ASSETS PER UNITSeries 3 7.30 7 .11Series 5 7.42 7 .22Series 6 5.25 5 .10Series 7 5.29 5 .13


2015 2014$ $

INCOMEInterest for attribution purposes — (847)Changes in fair value:

Net realized gain (loss) on investments 1,797,657 1,882,639 Net unrealized gain (loss) on investments 6,228,614 6,855,728

8,026,271 8,737,520

EXPENSESManagement fees and guarantee charge 2,247,188 2,125,360 Operating expenses 558,861 549,257

2,806,049 2,674,617












from Operations (3,134) 12 - per unit (0.05) 0 .06







$ $



PremiumsSeries 3 569,455 981,206 Series 5 8,399,633 9,216,732 Series 6* 6,843,648 1,754,104 Series 7* 601,340 1,001

16,414,076 11,953,043

WithdrawalsSeries 3 (816,788) (1,359,872)Series 5 (15,724,963) (15,043,312)Series 6* (786,274) (16,392)Series 7* (849) —

(17,328,874) (16,419,576)



2015 2014$ $



Adjustments for:Net realized gain (loss) (1,797,657) (1,882,639)Net unrealized gain (loss) (6,228,614) (6,855,728)


Investments purchased (3,323,278) (1,940,546)Receivable for securities sold 47,667 232,459 Accrued expenses 13,298 6,303 Payable for securities purchased (32,165) 99,134

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 740,459 4,787,865


NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (658,011) (4,493,207)









Fair Value

$ $

INVESTMENT FUND (100.5%)Franklin Quotential Diversified Income Portfolio 25,555,574 153,524,220 191,922,358



NET ASSETS (100%) 191,034,646


TOP HOLDINGS OF THE UNDERLYING FUND – unaudited


Franklin Bissett Core Plus Bond Fund 26 .9%Franklin Bissett Canadian Short Term Bond Fund 10 .0%Templeton Global Bond Fund 9 .4%Cash and Cash Equivalents 7 .2%BMO Mid Federal Bond Index ETF 6 .8%iShares Intermediate Credit Bond ETF 5 .5%Franklin Mutual European Fund 5 .4%Franklin Strategic Income Fund 5 .3%Franklin U .S . Rising Dividends Fund 3 .9%Franklin Bissett Canadian Dividend Fund 3 .2%Templeton Emerging Markets Fund 2 .9%Franklin Bissett Canadian High Dividend Fund 2 .5%Franklin U .S . Core Equity Fund 2 .1%Franklin Global Real Estate Fund 1 .9%WisdomTree Australia & New Zealand Debt ETF 1 .9%WisdomTree Japan Hedged Equity ETF 1 .2%Franklin Bissett Canadian Equity Fund 1 .2%Franklin Japan Fund 1 .0%SPDR Euro Stoxx 50 ETF 0 .9%iShares MSCI Japan ETF 0 .8%

DFS GIF – DIVERSIFIED INCOME – QUOTENTIAL (cont.)




as at June 30, 2015


Investment ObjectiveTo provide a balance of capital growth and interest income by investing primarily in units of an underlying fund in order to gain the desired exposure to the equity and fixed income markets .

Investment StrategyTo emphasize investments in fixed income underlying funds in order to provide income and capital preservation . The Fund also invests, to a lesser extent, in equity underlying funds in order to increase the potential for capital appreciation over a longer investment horizon .















as at June 30, 2015



Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmarks, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .



Benchmarks % $ $FTSE TMX Canada Universe (55%) 1 .00 1,064,834 861,568Barclays Capital Multiverse (Hedged) (25%) 1 .00 484,015 391,622S&P/TSX (15%) 3 .00 871,228 704,919MSCI All Country World Net (5%) 3 .00 290,409 234,973




DFS GIF – DIVERSIFIED INCOME – QUOTENTIAL (cont.)





DFS GIF – BALANCED INCOME – QUOTENTIAL


As atJune 30

2015December 31

2014$ $




259,026,965 251,917,062


1,356,247 1,045,509




2015 2014$ $

INCOMEChanges in fair value:


16,790,882 13,062,474


3,849,919 3,685,135



















$ $




15,131,645 11,101,162

WithdrawalsSeries 3 (1,195,137) (1,491,223)Series 5 (19,854,643) (13,354,796)Series 6* (204,163) (11,826)Series 7* (19,500) (816)

(21,273,443) (14,858,661)



2015 2014$ $





Investments purchased (84,459) (1,086,554)Receivable for securities sold 97,644 289,650 Accrued expenses 21,097 21,004 Payable for securities purchased 88,540 87,466





Cash (bank overdraft), beginning of period 31,643 (162,536)



DFS GIF – BALANCED INCOME – QUOTENTIAL (cont.)





Fair Value

$ $

INVESTMENT FUND (100.4%)Franklin Quotential Balanced Income Portfolio 25,784,084 181,695,061 258,614,364



NET ASSETS (100%) 257,670,718




Franklin Bissett Core Plus Bond Fund 29 .2%Templeton Global Bond Fund 7 .9%Franklin U .S . Core Equity Fund 4 .6%SPDR Euro Stoxx 50 ETF 4 .4%Templeton Asian Growth Fund 4 .3%Franklin Mutual European Fund 4 .2%Franklin Bissett Canadian Equity Fund 4 .2%Franklin Strategic Income Fund 3 .8%Franklin Flex Cap Growth Fund 3 .5%Franklin U .S . Rising Dividends Fund 3 .4%Franklin Bisset All Canadian Focus Fund 3 .4%iShares Intermediate Credit Bond ETF 2 .9%BMO Mid Federal Bond Index ETF 2 .3%Franklin Templeton Canadian Large Cap Fund 2 .2%WisdomTree Japan Hedged Equity ETF 2 .2%iShares MSCI Japan ETF 1 .8%WisdomTree Australia & New Zealand Debt ETF 1 .4%Franklin Bissett Small Cap Fund 1 .4%Franklin European Small-Mid Cap Growth Fund 1 .3%Franklin World Growth Fund 1 .1%Franklin Japan Fund 1 .1%iShares MSCI Japan Small-Cap ETF 0 .9%iShares MSCI China ETF 0 .6%iShares Russell 1000 Value ETF 0 .6%Templeton Frontier Markets Fund 0 .6%



as at June 30, 2015


Investment ObjectiveTo provide a balance of capital growth and interest income by investing primarily in units of an individual underlying fund in order to gain the desired exposure to the equity and fixed income markets .

Investment StrategyTo invest in fixed income underlying funds in order to provide income and capital preservation . The Fund also invests in equity underlying funds in order to increase the potential for capital appreciation over a longer investment horizon .













DFS GIF – BALANCED INCOME – QUOTENTIAL (cont.)




as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (45%) 1 .00 1,181,563 1,189,381Barclays Capital Multiverse (Hedged) (15%) 1 .00 393,854 396,460S&P/TSX (20%) 3 .00 1,575,417 1,585,842MSCI All Country World Net (20%) 3 .00 1,575,417 1,585,842






DFS GIF – CANADIAN BALANCED – FIDELITY



As atJune 30

2015December 31

2014$ $



or loss (FVTPL) 915,155,684 884,369,956 Premiums receivable 1,231,878 265,935 Receivable for securities sold 96,506 201,296

916,657,975 884,941,641

LIABILITIESCurrent LiabilitiesAccrued expenses 2,255,737 2,156,493 Withdrawals payable 2,294,920 1,165,334 Payable for securities purchased 64,034 22,793

4,614,691 3,344,620




2015 2014$ $

INCOMEInterest for attribution purposes 1,245,720 6,541,976 Dividends 12,734,034 5,801,374 Changes in fair value:


65,218,494 66,008,341

EXPENSESManagement fees and guarantee charge 10,908,068 10,295,509 Operating expenses 2,696,597 2,566,594

13,604,665 12,862,103 Withholding taxes 138,413 —

13,743,078 12,862,103



















$ $



PremiumsSeries 3 1,221,685 1,070,070 Series 5 42,001,095 24,500,076 Series 6* 9,726,124 3,124,429 Series 7* 225,509 1,001

53,174,413 28,695,576

WithdrawalsSeries 3 (1,075,222) (1,026,296)Series 5 (70,570,138) (56,662,068)Series 6* (2,552,324) (19,914)Series 7* (5,882) —

(74,203,566) (57,708,278)



2015 2014$ $





Investments purchased (9,006,580) (4,445,834)Receivable for securities sold 104,790 (166,525)Accrued expenses 99,244 82,020 Payable for securities purchased 41,241 (19,692)











Fair Value

$ $

INVESTMENT FUND (100.3%)Fidelity Canadian Balanced Fund, Series O 36,449,780 676,547,196 915,155,684


OTHER NET ASSETS (-0.3%) (3,112,400)

NET ASSETS (100%) 912,043,284




Valeant Pharmaceuticals International 5 .0%Toronto-Dominion Bank 2 .8%Magna International 2 .7%Restaurant Brands International 2 .6%Canadian Pacific Railway 2 .5%Brookfield Asset Management 2 .3%Gildan Activewear 2 .3%Alimentation Couche-Tard 1 .7%CVS Health Corporation 1 .6%Methanex Corporation 1 .6%Spirit Airlines Inc . 1 .5%Loblaw Companies 1 .2%Moody’s Corporation 1 .2%Citigroup 1 .1%Cardinal Health 1 .1%Vermilion Energy 1 .1%Government of Canada, 3 .50%, December 1, 2045 1 .1%Medtronic 1 .0%Allergan 1 .0%West Fraser Timber Company 1 .0%Snap-On 0 .9%Team Health Holdings 0 .9%Intertape Polymer Group 0 .9%Brookfield Property Partners 0 .8%Province of Ontario, 4 .20%, June 2, 2020 0 .8%

DFS GIF – CANADIAN BALANCED – FIDELITY (cont.)




as at June 30, 2015


Investment ObjectiveTo achieve high total investment return using a diversified portfolio targeting long-term capital appreciation and a regular income stream through investment in any kind of equity or fixed-income security or money market instrument . The fundamental Investment Objective is to provide investors with a balanced asset mix with the potential for capital growth .

Investment StrategyTarget fixed asset allocation to deliver superior long-term growth potential and reduced levels of risk . The Fund invests primarily in a mix of Canadian equity securities, investment grade bonds, high yield securities and money market instruments . The equity investment decisions are based on a thorough examination of the company, financial conditions and long-term earnings potential .















as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (40%) 1 .00 3,111,523 2,729,893Merrill Lynch High Yield Master II (10%) 2 .00 1,555,762 1,364,947S&P/TSX Capped (50%) 3 .00 11,668,212 10,237,100




DFS GIF – CANADIAN BALANCED – FIDELITY (cont.)




DFS GIF – CANADIAN BALANCED – FIERA



As atJune 30

2015December 31

2014$ $




or loss (FVTPL) pledged as collateral 30,450,779 37,183,179 Premiums receivable 422,012 129,363 Receivable for securities sold 2,457,170 547,234 Cash guarantee received for

repurchase transactions 21,206,459 13,930,968 Interest, dividends and other receivables 321,233 328,300

218,307,878 208,408,669

LIABILITIESCurrent LiabilitiesBank overdraft 5,074 —Accrued expenses 433,998 425,664 Withdrawals payable 282,034 118,102 Payable for securities purchased 2,460,128 553,776 Commitments related to repurchase

transactions 21,206,459 13,930,968 24,387,693 15,028,510




2015 2014$ $

INCOMEInterest for attribution purposes 733,640 780,587 Dividends 1,575,531 1,456,932 Revenue from securities lending

and repurchase transactions 13,300 12,420 Foreign exchange gain (loss) on cash 9,204 2 Changes in fair value:


11,184,712 16,530,909


2,640,920 2,555,002 Withholding taxes 79,288 59,436 Commissions and other portfolio

transaction costs 85,773 113,456 2,805,981 2,727,894




Average number of units 929,553 1,082,012


















$ $




9,072,159 4,334,277

WithdrawalsSeries 1 (939,738) (795,041)Series 3 (1,795,698) (2,579,822)Series 5 (13,998,020) (11,724,128)Series 6* (172,211) (392)Series 7* (5,197) —

(16,910,864) (15,099,383)



2015 2014$ $



Adjustments for:Foreign exchange gain (loss)

on cash (9,204) (2)Net realized gain (loss) (6,769,196) (5,469,743)Net unrealized gain (loss) (2,083,841) (8,811,225)


Investments purchased (174,581,731) (161,153,341)Receivable for securities sold (1,909,936) 642,645 Cash guarantee received

for repurchase transactions (7,275,491) 2,689,777 Interest, dividends and

other receivables 7,067 (40,152)Accrued expenses 8,334 8,366 Commitments related to

repurchase transactions 7,275,491 (2,689,777)Payable for securities purchased 1,906,352 685,549




Effect of exchange rate changes on foreign cash 4,106 (836)




SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIES

Interest received 752,860 793,654 Dividends received, net of withholding taxes 909,703 826,314 Interest paid 4 —


DFS GIF – CANADIAN BALANCED – FIERA (cont.)




as at June 30, 2015

Number Fair of Shares Cost Value $ $

EQUITIES (41.8%)

Energy (7.6%)Canadian Natural Resources 75,127 2,590,394 2,547,557 Cenovus Energy 84,435 1,846,255 1,686,167 Enbridge 41,567 2,343,682 2,427,928 Freehold Royalties 79,400 1,429,200 1,281,516 Peyto Exploration & Development Corporation 31,683 980,637 967,282 PrairieSky Royalty 28,401 845,363 894,916 Suncor Energy 69,431 2,491,172 2,388,426 Tourmaline Oil Corp . 27,389 1,142,193 1,027,635TransCanada Corporation 31,800 1,833,146 1,614,168

15,502,042 14,835,595

Materials (5.5%)Agnico Eagle Mines 38,611 1,326,026 1,369,146 Agrium 6,600 841,822 873,642 CCL Industries, Class B 10,661 874,532 1,633,265 First Quantum Minerals 89,110 1,394,587 1,455,166 Franco-Nevada Corporation 18,760 1,029,697 1,117,533 Potash Corporation of Saskatchewan* 14,816 578,107 573,083 Tahoe Resources 159,533 2,680,154 2,415,330 West Fraser Timber Co . 16,644 837,973 1,142,278

9,562,898 10,579,443

Industrials (3.4%)ATS Automation Tooling Systems 134,158 1,696,588 2,051,276 Canadian National Railway Company 39,534 2,171,500 2,848,820 Canadian Pacific Railway* 8,523 1,308,534 1,704,770

5,176,622 6,604,866

Consumer Discretionary (2.4%)Dollarama 26,030 1,120,037 1,970,471 Gildan Activewear* 62,952 1,588,925 2,611,878

2,708,962 4,582,349

Consumer Staples (3.1%)Alimentation Couche-Tard, Class B 33,379 980,384 1,783,440 Loblaw Companies 66,127 3,332,773 4,171,291

4,313,157 5,954,731

Health Care (2.1%)Valeant Pharmaceuticals International 14,568 3,606,118 4,036,356

Financials (16.0%)CI Financial 71,762 2,256,865 2,411,203 Element Financial Corporation 66,691 876,631 1,317,147 Element Financial Corporation, Subscription Receipts 124,875 2,122,875 2,446,301 Intact Financial Corporation 15,830 1,194,236 1,373,886 Manulife Financial Corporation 177,564 3,658,564 4,121,260 Power Financial Corporation* 38,703 1,252,017 1,388,277 RioCan Real Estate Investment Trust* 36,500 1,089,671 977,105




as at June 30, 2015


CANADIAN EQUITIES (cont.)

Financials (16.0%) (cont.)Royal Bank of Canada 86,241 5,534,508 6,587,088 Scotiabank 77,299 4,626,034 4,983,467 Toronto-Dominion Bank 103,662 4,413,614 5,498,232

27,025,015 31,103,966

Information Technology (1.1%)CGI Group, Class A* 45,789 1,477,404 2,236,793

Telecommunication Services (0.6%)TELUS Corporation 26,414 1,098,543 1,136,594

TOTAL EQUITIES 70,470,761 81,070,693

Number of Units

INVESTMENT FUND (25.0%)Fiera Global Equity Fund 3,119,805 33,037,148 48,386,484

Par Value

BONDS (20.3%)

Government of Canada (5.5%)Broadcast Center Trust 7 .530%, 2027-05-01 CAD 216,110 234,213 287,871 Government of Canada 1 .500%, 2017-02-01* CAD 1,193,000 1,210,663 1,212,155 1 .250%, 2017-08-01 CAD 3,945,000 3,998,655 4,007,364 2 .250%, 2025-06-01* CAD 839,000 876,595 882,176 5 .750%, 2033-06-01* CAD 31,000 49,770 47,441 3 .500%, 2045-12-01* CAD 2,527,000 3,143,049 3,182,881 PSP Capital Series 7, 3 .290%, 2024-04-04 CAD 120,000 119,939 129,184 Royal Office Finance

Series A, 5 .209%, 2032-11-12 CAD 725,752 719,590 901,976

10,352,474 10,651,048

Provincial Governments and Crown Corporations (6.9%)Ontario Infrastructure 4 .700%, 2037-06-01 CAD 70,000 70,093 82,801Ontario School Boards Financing Corporation Series 00A1, 7 .200%, 2025-06-09 CAD 352,750 427,921 448,400 Series 04A1, 5 .483%, 2029-11-26 CAD 403,271 430,376 483,149 Private Placement, Series 06A1, 5 .070%, 2031-04-18 CAD 385,976 385,976 443,106 Province of Alberta 3 .900%, 2033-12-01 CAD 325,000 323,567 366,358 3 .450%, 2043-12-01 CAD 361,000 335,289 381,614 Province of British Columbia 3 .200%, 2044-06-18* CAD 236,000 218,064 240,382






as at June 30, 2015

Par Fair Value Cost Value $ $

BONDS (cont.)

Provincial Governments and Crown Corporations (6.9%) (cont.)Province of Ontario 4 .400%, 2019-06-02 CAD 451,000 508,882 506,730 4 .000%, 2021-06-02 CAD 24,000 26,238 27,144 3 .150%, 2022-06-02* CAD 1,606,000 1,635,362 1,732,834 2 .850%, 2023-06-02 CAD 2,787,000 2,744,091 2,924,876 3 .500%, 2024-06-02* CAD 982,000 1,040,912 1,073,367 2 .600%, 2025-06-02 CAD 799,000 829,028 808,841 3 .500%, 2043-06-02 CAD 141,000 131,378 148,753 3 .450%, 2045-06-02* CAD 588,000 551,255 617,528 Province of Quebec 4 .500%, 2019-12-01* CAD 1,110,000 1,228,858 1,263,161 3 .500%, 2022-12-01 CAD 612,000 638,452 674,164 2 .750%, 2025-09-01* CAD 314,000 329,800 321,096 4 .250%, 2043-12-01 CAD 233,000 238,436 276,156 3 .500%, 2045-12-01 CAD 437,000 421,028 459,405 TCHC Issuer Trust 4 .877%, 2037-05-11 CAD 59,000 59,000 70,097 Series B, 5 .395%, 2040-02-22 CAD 110,000 112,200 143,123

12,686,206 13,493,085

Corporations (7.9%)Bank of Montreal 3 .490%, 2016-06-10 CAD 46,000 48,351 47,033 2 .960%, 2016-08-02 CAD 450,000 459,240 458,891 2 .390%, 2017-07-12 CAD 531,000 532,638 543,421 3 .979%, (floating rate from 2016-07-08), 2021-07-08 CAD 437,000 458,038 448,120 3 .120%, (floating rate from 2019-09-19), 2024-09-19* CAD 259,000 261,085 267,983 Blackbird Infrastructure 407 General Partners 1 .713%, (floating rate from 2020-01-08), 2021-10-08 CAD 77,000 76,400 77,014 British Columbia Ferry Services 5 .021%, 2037-03-20 CAD 70,000 70,000 82,408 Caisse centrale Desjardins 3 .502%, 2017-10-05* CAD 100,000 105,390 104,877 2 .443%, 2019-07-17 CAD 310,000 322,214 320,911 Canadian Imperial Bank of Commerce 1 .750%, 2016-06-01 CAD 473,000 472,636 476,071 2 .350%, 2017-10-18 CAD 872,000 878,474 893,455 3 .150%, (floating rate from 2015-11-02), 2020-11-02 CAD 748,000 756,981 752,333 3 .000%, (floating rate from 2019-10-28), 2024-10-28 CAD 210,000 213,738 216,427 Canadian Utilities 4 .543%, 2041-10-24 CAD 83,000 87,263 91,983 Capital City Link Series A, 4 .386%, 2046-03-31 CAD 182,000 181,662 191,546 Capital Desjardins Series G, 5 .187%, 2020-05-05 CAD 160,000 184,640 182,562 Series F, 5 .541%, (floating rate from 2016-06-01), 2021-06-01 CAD 130,000 136,019 134,814 Cominar Real Estate Investment Trust Series 9, 4 .164%, 2022-06-01 CAD 245,000 245,000 246,898 CSS (FSCC) Partnership 6 .915%, 2042-07-31 CAD 18,670 23,963 24,927




as at June 30, 2015


BONDS (cont.)Enbridge 3 .940%, 2023-06-30 CAD 120,000 120,000 125,024 7 .200%, 2032-06-18 CAD 229,000 284,550 292,502 Greater Toronto Airports Authority Series 99-1, 6 .450%, 2029-07-30 CAD 127,906 140,288 161,998 Health Montréal Collective, Private Placement Series 144A, 6 .721%, 2049-09-30 CAD 512,000 623,060 673,443 Hospital Infrastructure Series A, 5 .439%, 2045-01-31 CAD 155,000 154,998 184,493 Integrated Team Solutions SJHC 5 .946%, 2042-11-30 CAD 55,000 55,388 68,053 North West Redwater Partnership Series A, 3 .200%, 2024-07-22 CAD 195,000 195,135 201,763 Northland Power Series A, 4 .958%, 2032-12-31 CAD 155,088 155,098 176,448 Plenary Health Care Partnerships Humber 4 .895%, 2039-05-31 CAD 130,000 130,000 144,828 Plenary Properties 6 .288%, 2044-01-31 CAD 315,812 376,044 413,286 Reliance Series 1, 4 .574%, 2017-03-15 CAD 69,000 69,000 71,285 Series 2, 5 .187%, 2019-03-15 CAD 149,000 149,000 160,028 Royal Bank of Canada 2 .364%, 2017-09-21* CAD 710,000 702,201 726,530 2 .260%, 2018-03-12* CAD 202,000 205,828 206,756 2 .860%, 2021-03-04 CAD 211,000 210,973 220,538 3 .040%, (floating rate from 2019-07-17), 2024-07-17 CAD 106,000 105,981 109,655 2 .990%, (floating rate from 2019-12-06), 2024-12-06 CAD 629,000 631,019 656,260 2 .480%, (floating rate from 2020-06-04), 2025-06-04 CAD 335,000 334,936 334,380 Scotiabank 2 .370%, 2018-01-11 CAD 321,000 319,058 329,279 2 .242%, 2018-03-22 CAD 678,000 678,000 693,733 3 .270%, 2021-01-11 CAD 325,000 351,302 346,476 2 .898%, (floating rate from 2017-08-03), 2022-08-03 CAD 512,000 517,363 526,302 SNC-Lavalin Innisfree McGill Finance 6 .632%, 2044-06-30 CAD 136,193 158,242 177,954 Teranet Income Fund 5 .754%, 2040-12-17 CAD 90,000 90,000 99,904 6 .100%, 2041-06-17 CAD 477,000 530,626 544,151 Toronto-Dominion Bank 3 .226%, 2024-07-24* CAD 309,000 310,620 322,450 2 .692%, (floating rate from 2020-06-24), 2025-06-24 CAD 196,000 196,000 197,418 4 .779%, (floating rate from 2016-12-14), 2105-12-14 CAD 200,000 210,660 209,154 5 .763%, (floating rate from 2017-12-18), 2106-12-18 CAD 1,085,000 1,209,077 1,193,364 TransCanada PipeLines

8 .050%, 2039-02-17 CAD 104,000 168,454 160,681

14,896,633 15,289,810

TOTAL BONDS 37,935,313 39,433,943






as at June 30, 2015


MONEY MARKET SECURITIES (12.6%)

Canada Treasury Bills 2015-07-30 CAD 2,445,000 2,442,042 2,442,042 2015-08-13* CAD 9,465,000 9,454,129 9,454,129 2015-08-27 CAD 870,000 868,851 868,851 2015-09-10* CAD 3,130,000 3,125,934 3,125,934 Province of Alberta, notes 2015-07-10 CAD 2,500,000 2,498,150 2,498,150 Province of British Columbia, notes 2015-07-27 CAD 1,500,000 1,498,185 1,498,185 Province of Nova Scotia, notes 2015-08-17 CAD 4,525,000 4,519,344 4,519,344

TOTAL MONEY MARKET SECURITIES 24,406,635 24,406,635

MORTGAGE-BACKED SECURITIES (0.2%)

Merrill Lynch Financial Assets 4 .826%, 2016-02-12 CAD 100,000 87,221 101,316 4 .642%, 2016-10-12 CAD 400,000 176,762 197,277 Series 2007-CA22, Class A3, 4 .878%, 2017-04-12 CAD 50,000 45,800 52,666 Merrill Lynch Mortgage Loans 4 .711%, 2016-11-12 CAD 200,000 32,927 36,737 Real Estate Asset Liquidity Trust 4 .449%, 2016-08-12 CAD 100,000 16,796 18,634

TOTAL MORTGAGE-BACKED SECURITIES 359,506 406,630

ASSET-BACKED SECURITIES (0.1%)

CHIP Mortgage Trust 3 .663%, 2038-09-25 CAD 186,000 186,000 196,619

PORTFOLIO TRANSACTION COSTS INCLUDED IN THE SECURITIES’ COST (38,160) —


OTHER NET ASSETS (-0.0%) 19,181

NET ASSETS (100%) 193,920,185

* Securities pledged as collateral, in part or in whole, through the securities lending program.The accompanying notes are an integral part of these financial statements.

TOP FIVE HOLDINGS OF THE UNDERLYING FUND – unaudited


FIERA GLOBAL EQUITY FUND 25.0%Moody’s Corporation 4 .5%Becton, Dickinson and Company 3 .7%Johnson & Johnson 3 .4%Wells Fargo & Company 3 .2%US Bancorp 3 .2%



as at June 30, 2015


Investment ObjectiveTo provide investors with a balance of capital growth and interest income by investing primarily in Canadian fixed-income and equity securities .

Investment StrategyTo provide such a balance by investing a portion of its assets in the common shares of medium and large cap Canadian corporations and the remainder in Canadian government and Canadian investment-grade corporate bonds and other interest-bearing instruments .





Financial Assets at FVTPLEquities 81,070,693 — — 81,070,693 Bonds 22,769,479 16,664,464 — 39,433,943 Investment Funds — 48,386,484 — 48,386,484 Mortgage-Backed Securities — 406,630 — 406,630 Asset-Backed Securities — 196,619 — 196,619 Money Market Securities 24,406,635 — — 24,406,635 TOTAL 128,246,807 65,654,197 — 193,901,004


Financial Assets at FVTPLEquities 80,447,407 — — 80,447,407 Bonds 22,904,527 15,597,683 — 38,502,210 Investment Funds — 47,679,417 — 47,679,417 Mortgage-Backed Securities — 434,583 — 434,583 Asset-Backed Securities — 193,141 — 193,141 Money Market Securities 26,138,786 — — 26,138,786 TOTAL 129,490,720 63,904,824 — 193,395,544


Classification of Level 3As at June 30, 2015, the Fund has no financial instruments classified within Level 3 .

As at December 31, 2014, the Fund has financial instruments requiring Level 3 valuation . Fair value measurements are derived from valuation techniques . The substitution of one or more data from these techniques by one or several reasonably possible assumptions should not result in significant changes in the fair value of these investments . The following table explains the classification of fair value within Level 3:

December 31, 2014 Financial instruments Fair value $ Valuation techniques Unobservable inputs Range

Protective Products of America — Discounting of cash flows Recovery rate —





as at June 30, 2015

Reconciliation of Level 3 Fair Value MeasurementThe following table summarizes a reconciliation of movements on Level 3 financial instruments between the beginning and end of the period:

December 31, 2014 Equities$

Balance, Beginning of Year — Proceeds from sale of investments 768,768 Investments purchased — Net realized gain (loss) — Net unrealized gain (loss) (768,768)Transfers to (from) Level 3 —

Balance, End of Year —

Change in Net Unrealized Gain (Loss) of the Year for Securities Held as at December 31, 2014 —

Certain securities classified Level 3 entailed restrictions . In April 2014, these securities valued at approximately $769,000 were transfered from Level 3 to Level 1 following the expiration of the restrictions .

Investments in Entities (Note 2)Total values of index-based investments, mortgage-backed securities, asset-backed securities, investment funds and limited partnerships in the table “Investment Fair Value Measurement within the Levels” also represent the fair value of investments in structured entities .


Currency RiskAs at June 30, 2015 and December 31, 2014, part of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to currency risk . As a result, the Fund may be exposed to currency risk related to the current underlying fund . Detailed disclosure about the currency risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .As at June 30, 2015 and December 31, 2014, the majority of the Fund’s financial assets and liabilities are denominated in Canadian dollars . As a result, the Fund is not significantly exposed to currency risk .

Interest Rate RiskPart of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to interest rate risk . As a result, the Fund may be exposed to interest rate risk related to the current underlying fund . Detailed disclosure about the interest rate risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The following table summarizes the Fund’s exposure to interest rate risk . It includes the Fund’s financial assets and liabilities at fair value, categorized by the earlier of contractual re-pricing or maturity dates . The table also illustrates the impact on the Net Assets Attributable to Contract Owners, had prevailing interest rates changed by 0 .25%, assuming a parallel shift in the yield curve, with all other variables held constant .



as at June 30, 2015



Impact on Net Assets Attributable to Contract

Owners$ $ $ $ $ $

June 30, 2015 25,913,128 16,222,529 10,164,135 12,138,961 64,438,753 721,053

December 31, 2014 27,398,680 16,778,275 9,545,391 11,623,634 65,345,980 668,950


Concentration RiskPart of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to concentration risk . As a result, the Fund is exposed to concentration risk related to the current underlying fund . Detailed disclosure about the concentration risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The following table summarizes the concentration risk, as in percentages of the Net Assets Attributable to Contract Owners:

June 30, 2015 December 31, 2014MARKET SEGMENT % MARKET SEGMENT %Equities Equities

Financials 16 .0 Financials 14 .4Energy 7 .6 Energy 8 .1Materials 5 .5 Materials 4 .3Industrials 3 .4 Industrials 4 .1Consumer Staples 3 .1 Consumer Discretionary 3 .6Consumer Discretionary 2 .4 Consumer Staples 3 .0Health Care 2 .1 Information Technology 2 .0Information Technology 1 .1 Telecommunication Services 1 .5Telecommunication Services 0 .6 Health Care 0 .6

Investment Funds 25 .0 Investment Funds 24 .7Bonds Bonds

Corporations 7 .9 Corporations 7 .3Provincial Governments and Crown Corporations 6 .9 Provincial Governments and Crown Corporations 6 .8Government of Canada 5 .5 Government of Canada 5 .8

Money Market Securities 12 .6 Money Market Securities 13 .5Mortgage-Backed Securities 0 .2 Mortgage-Backed Securities 0 .2Asset-Backed Securities 0 .1 Asset-Backed Securities 0 .1TOTAL 100 TOTAL 100





as at June 30, 2015

Price RiskThe Fund may trade in financial instruments and take positions in traded and over-the-counter instruments .Part of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmarks, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .

Change in Price Impact on Net Assets Attributable to Contract Owners

June 30, 2015 December 31, 2014Benchmarks % $ $FTSE TMX Canada 91 Day Treasury Bills (10%) 0 .25 48,702 50,705FTSE TMX Canada Universe (30%) 1 .00 584,422 608,463S&P/TSX Capped (40%) 3 .00 2,337,688 2,433,852MSCI World Net (20%) 3 .00 1,168,844 1,216,926


Credit RiskPart of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to credit risk . As a result, the Fund may be exposed to credit risk related to the current underlying fund . Detailed disclosure about the credit risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Fund’s credit risk concentration is separated between fixed-income and money market securities . Their fair values include consideration of the issuers’ creditworthiness and accordingly, represent the Fund’s maximum exposure to credit risk .The investment grade for Canadian fixed-income securities and money market securities is rated by the Dominion Bond Rating Service (“DBRS”), Standard & Poor’s or Moody’s . The investment grade for foreign fixed-income securities and money market securities is rated by Standard & Poor’s, Moody’s or Fitch . In cases where the credit rating agencies do not agree on a credit rating for fixed-income securities and money market securities, they will be classified following these rules:• If two credit ratings are available, but the ratings are different, the lowest rating is used;• If three credit ratings are available, the most common credit rating is used;• If all three credit rating agencies have different ratings, the middle credit rating is used .The credit rating is then converted to DBRS format . Generally, the greater the credit rating of a security, the lower the probability of it defaulting on its obligations .

Portfolio’s fixed-income securities by credit rating category


% %AAA 31 33 AA 38 37A 24 24BBB 7 6TOTAL 100 100



as at June 30, 2015

Portfolio’s money market securities by credit rating category

Credit rating Percentage of Money Market SecuritiesJune 30, 2015 December 31, 2014

% %R-1 (High) 81 100 R-1 (Middle) 19 — TOTAL 100 100


$June 30, 2015 21,180,624 December 31, 2014 13,331,416


$June 30, 2015 13,894,928 December 31, 2014 8,737,913


$June 30, 2015 98 December 31, 2014 465,093


Liquidity RiskAs at June 30, 2015 and December 31, 2014, part of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to liquidity risk . As a result, the Fund is exposed to liquidity risk related to the current underlying fund . Detailed disclosure about the liquidity risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .For further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .





as at June 30, 2015



June 30, 2015 December 31, 2014$ $





$ $Financial Assets 21,180,624 13,331,416 Related Liabilities 21,201,919 13,466,296





As atJune 30

2015December 31

2014$ $




217,517,698 227,518,055

LIABILITIESCurrent LiabilitiesBank overdraft 80,357 —Accrued expenses 502,090 516,062 Withdrawals payable 408,171 436,491 Payable for securities purchased 70,319 226,820

1,060,937 1,179,373




2015 2014$ $

INCOMEInterest for attribution purposes 2,262 (1,468)Dividends 75,390 —Changes in fair value:

Net realized gain (loss) on investments 4,061,046 958,686 Net unrealized gain (loss) on investments 1,435,734 14,208,153

5,574,432 15,165,371


3,106,102 2,944,174 Withholding taxes 2,262 —

3,108,364 2,944,174












from Operations 12,309 (288)- per unit 0.03 (0 .04)



DFS GIF – CANADIAN BALANCED – BISSETT






$ $



PremiumsSeries 3 277,151 1,321,680 Series 5 5,969,689 19,555,409 Series 6* 6,768,704 3,460,723 Series 7* 966,558 251,001

13,982,102 24,588,813

WithdrawalsSeries 3 (1,174,074) (1,879,804)Series 5 (23,008,168) (11,652,420)Series 6* (2,064,530) (6,322)Series 7* (83,319) (750)

(26,330,091) (13,539,296)



2015 2014$ $



Adjustments for:Net realized gain (loss) (4,061,046) (958,686)Net unrealized gain (loss) (1,435,734) (14,208,153)


Investments purchased (3,346,343) (13,496,251)Receivable for securities sold (45,430) 51,010 Accrued expenses (13,972) 61,015 Payable for securities purchased (156,501) 57,082

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 12,080,659 (10,937,949)


NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (12,251,557) 11,029,354




SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest paid — 1,468





Fair Value

$ $

INVESTMENT FUND (100.3%)Franklin Bissett Canadian Balanced Fund, Series O 4,917,620 167,222,352 217,162,083



NET ASSETS (100%) 216,456,761




Franklin Bissett Canadian Equity Fund 18 .1%Franklin Bissett Core Plus Bond Fund 12 .7%Franklin Bissett Corporate Bond Fund 11 .5%Franklin Bissett Microcap Fund 5 .5%Franklin Bissett Small Cap Fund 5 .4%Franklin Mutual Global Discovery Fund 4 .7%Templeton EAFE Developed Markets Fund 4 .7%Franklin U .S . Rising Dividends Fund 4 .5%Franklin Bissett U .S . Focus Fund 4 .5%Franklin Bissett Canadian Short Term Bond Fund 4 .0%Franklin Bissett Canadian Dividend Fund 3 .6%Franklin Bisset All Canadian Focus Fund 3 .6%Franklin Strategic Income Fund 3 .3%Templeton Global Bond Fund 3 .3%Franklin Bissett Canadian High Dividend Fund 2 .8%Franklin Bissett Monthly Income And Growth Fund 2 .5%Templeton Global Smaller Companies Fund 2 .5%Templeton Emerging Markets Fund 2 .0%Cash and Cash Equivalents 0 .8%

DFS GIF – CANADIAN BALANCED – BISSETT (cont.)




as at June 30, 2015


Investment ObjectiveTo provide investors with a balance of current income and long-term capital appreciation primarily through the investment in Canadian fixed-income and equity securities .

Investment StrategyTo provide such an opportunity by investing in a diversified portfolio of Bissett mutual funds . The underlying funds may invest in foreign securities .




June 30, 2015 Level 1 Level 2 Level 3 Total$ $ $ $











as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (35%) 1 .00 633,602 751,941Barclays Capital U .S . Aggregate Bond (2 .5%) 1 .00 45,257 53,710J .P . Morgan Global Government Bond (2 .5%) 1 .00 45,257 53,710S&P/TSX Small Cap (5%) 3 .00 271,544 322,260S&P/TSX (32 .5%) 3 .00 1,765,036 2,094,692S&P 500 (10%) 3 .00 543,088 644,521MSCI EAFE Net (10%) 3 .00 543,088 644,521MSCI Emerging Markets Net (2 .5%) 3 .00 135,772 161,130




DFS GIF – CANADIAN BALANCED – BISSETT (cont.)





As atJune 30

2015December 31

2014$ $



or loss (FVTPL) 540,185,832 517,888,640 Premiums receivable 725,129 283,275 Receivable for securities sold — 454,301

540,967,282 518,626,216

LIABILITIESCurrent LiabilitiesBank overdraft — 101,925 Accrued expenses 1,342,469 1,274,020 Withdrawals payable 1,107,338 946,605 Payable for securities purchased 205,628 —

2,655,435 2,322,550




2015 2014$ $



40,123,747 28,229,786

EXPENSESManagement fees and guarantee charge 6,474,120 6,054,118 Operating expenses 1,609,065 1,525,945

8,083,185 7,580,063















DFS GIF – BALANCED GROWTH – QUOTENTIAL






$ $




28,965,084 16,540,885

WithdrawalsSeries 3 (1,539,604) (928,889)Series 5 (36,889,746) (21,787,992)Series 6* (563,295) (6,946)Series 7* (4,820) —

(38,997,465) (22,723,827)



2015 2014$ $





Investments purchased (8,549,146) (5,525,344)Receivable for securities sold 454,301 (18,762)Accrued expenses 68,449 56,720 Payable for securities purchased 205,628 77,229









DFS GIF – BALANCED GROWTH – QUOTENTIAL (cont.)





Fair Value

$ $

INVESTMENT FUND (100.3%)Franklin Quotential Balanced Growth Portfolio 47,013,562 349,959,157 540,185,832


OTHER NET ASSETS (-0.3%) (1,873,985)

NET ASSETS (100%) 538,311,847




Franklin Bissett Core Plus Bond Fund 19 .8%Franklin U .S . Core Equity Fund 6 .1%SPDR Euro Stoxx 50 ETF 5 .9%Templeton Asian Growth Fund 5 .8%Franklin Mutual European Fund 5 .7%Franklin Bissett Canadian Equity Fund 5 .6%Templeton Global Bond Fund 5 .4%Franklin Flex Cap Growth Fund 4 .7%Franklin U .S . Rising Dividends Fund 4 .5%Franklin Bisset All Canadian Focus Fund 4 .5%Franklin Templeton Canadian Large Cap Fund 3 .0%WisdomTree Japan Hedged Equity ETF 2 .9%Franklin Strategic Income Fund 2 .6%iShares MSCI Japan ETF 2 .4%iShares Intermediate Credit Bond ETF 2 .0%Franklin Bissett Small Cap Fund 1 .8%Franklin European Small-Mid Cap Growth Fund 1 .8%BMO Mid Federal Bond Index ETF 1 .6%Franklin World Growth Fund 1 .5%Franklin Japan Fund 1 .5%iShares MSCI Japan Small-Cap ETF 1 .2%WisdomTree Australia & New Zealand Debt ETF 0 .9%iShares MSCI China ETF 0 .8%iShares Russell 1000 Value ETF 0 .8%Templeton Frontier Markets Fund 0 .7%



as at June 30, 2015



Investment StrategyTo emphasize investments in equity underlying funds in order to increase the potential for capital appreciation over a longer investment horizon . The Fund also invests, to a lesser extent, in fixed income underlying funds in order to provide stability .




June 30, 2015 Level 1 Level 2 Level 3 Total$ $ $ $







Underlying Fund Risk ManagementMonthly, the investment strategy team compares the Fund’s performance to similar funds as well as to the related benchmarks . Quarterly, this team makes an analysis of the Fund’s performance . This analysis includes among others a review of the securities having obtained a greater or lower performance than forecasts, an evaluation of the strategies used as well as a complete analysis of the sector . It also ensures the compliance with the Fund’s investment policies . Furthermore, it examines thoughtfully any change within the organization, such as the recruitment, the departure of key staff or any structure modification . Annually, this team reviews the practices and processes used by the Fund’s managers through an exhaustive questionnaire and periodic meetings .


DFS GIF – BALANCED GROWTH – QUOTENTIAL (cont.)




as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (30%) 1 .00 1,604,954 1,660,942Barclays Capital Multiverse (Hedged) (10%) 1 .00 534,985 553,647S&P/TSX (30%) 3 .00 4,814,861 4,982,827MSCI All Country World Net (30%) 3 .00 4,814,861 4,982,827





DFS GIF – CANADIAN BALANCED – CI SIGNATURE




As atJune 30

2015December 31

2014$ $




110,739,172 97,005,831

LIABILITIESCurrent LiabilitiesBank overdraft — 5,623 Accrued expenses 273,681 232,154 Withdrawals payable 332,331 85,733 Payable for securities purchased 88,396 336,784

694,408 660,294


NET ASSETS PER UNITSeries 5 6.81 6 .69 Series 6 5.47 5 .37 Series 7 5.51 5 .39


2015 2014$ $

INCOMEInterest for attribution purposes — (4,706)Changes in fair value:

Net realized gain (loss) on investments 256,856 400,241 Net unrealized gain (loss) on investments 2,864,259 6,629,906

3,121,115 7,025,441

EXPENSESManagement fees and guarantee charge 1,226,170 954,221 Operating expenses 344,192 298,519

1,570,362 1,252,740
















$ $



PremiumsSeries 5 10,830,363 3,492,480 Series 6* 8,904,148 1,076,025 Series 7* 690,527 1,001

20,425,038 4,569,506

WithdrawalsSeries 5 (7,151,627) (5,047,420)Series 6* (1,082,988) (14,967)Series 7* (41,949) —

(8,276,564) (5,062,387)



2015 2014$ $



Adjustments for:Net realized gain (loss) (256,856) (400,241)Net unrealized gain (loss) (2,864,259) (6,629,906)


Investments purchased (13,361,281) (1,699,049)Receivable for securities sold 698 25,305 Accrued expenses 41,527 16,103 Payable for securities purchased (248,388) (67,577)



NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 12,575,753 (526,598)



CASH (BANK OVERDRAFT), END OF PERIOD 8,686 445

SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest paid — 4,706





Fair Value

$ $

INVESTMENT FUND (100.4%)Signature Canadian Balanced Fund, Class I 10,855,692 100,616,481 110,510,946



NET ASSETS (100%) 110,044,764




Scotiabank 3 .9%Toronto-Dominion Bank 3 .5%Royal Bank of Canada 3 .5%Canadian National Railway Company 1 .8%Province of Quebec, 4 .50%, December 1, 2019 1 .4%Apple 1 .3%Alimentation Couche-Tard 1 .3%Citigroup 1 .2%Province of Ontario, 4 .20%, June 2, 2020 1 .2%Province of Quebec, 2 .75%, September 1, 2025 1 .2%Government of Canada, 2 .75%, June 1, 2022 1 .1%UBS Group AG 1 .1%Government of Canada, 5 .75%, June 1, 2033 1 .0%AstraZeneca 1 .0%Novartis AG 1 .0%Power Corporation of Canada 1 .0%NXP Semiconductor 1 .0%Province of Ontario, 3 .50%, June 2, 2024 0 .9%Roche Holding AG 0 .9%Province of Ontario, 2 .10%, September 8, 2018 0 .9%Enbridge 0 .8%Province of Quebec, 4 .25%, December 1, 2021 0 .8%JPMorgan Chase & Company 0 .8%Province of Quebec, 3 .75%, September 1, 2024 0 .8%EnCana Corporation 0 .7%

DFS GIF – CANADIAN BALANCED – CI SIGNATURE (cont.)




as at June 30, 2015


Investment ObjectiveTo provide investors with an attractive balance of current income and capital appreciation by investing primarily in a combination of Canadian equity and equity-related securities and fixed income securities .

Investment StrategyFor the equity portion, the Fund invests primarily in companies providing a stable income or consistent dividends . For the income portion, the portfolio advisor selects high-quality fixed income securities, including bank loans and floating rate debt instruments but may choose to shift the weighting of the portion of the Fund held in bonds with longer terms to maturity depending on the expected fluctuations in interest rates . The Fund may also invest in foreign securities as well as warrants and derivatives, the latter to aid in hedging against potential losses resulting from changes in the prices of the securities that the Fund has invested in as well as any exposure from foreign currencies .














as at June 30, 2015







Benchmarks % $ $FTSE TMX Canada Universe (40%) 1 .00 356,818 336,005S&P/TSX (30%) 3 .00 802,840 756,012MSCI All Country World Net (30%) 3 .00 802,840 756,012




DFS GIF – CANADIAN BALANCED – CI SIGNATURE (cont.)




DFS GIF – BALANCED – ETHICAL



As atJune 30

2015December 31

2014$ $




8,091,299 7,642,747

LIABILITIESCurrent LiabilitiesBank overdraft 11,765 278 Accrued expenses 19,781 18,620 Withdrawals payable 6,525 7,452 Payable for securities purchased — 982

38,071 27,332




2015 2014$ $


Net realized gain (loss) on investments 68,525 69,781 Net unrealized gain (loss) on investments 126,181 474,376

194,706 543,417


117,244 112,834






from Operations (714) 3,211 - per unit (0.01) 0 .20










$ $



PremiumsSeries 5 327,359 373,723 Series 6* 570,603 120,923 Series 7* — 1,001

897,962 495,647

WithdrawalsSeries 5 (394,636) (964,016)Series 6* (142,975) (152)Series 7* — —

(537,611) (964,168)



2015 2014$ $



Adjustments for:Net realized gain (loss) (68,525) (69,781)Net unrealized gain (loss) (126,181) (474,376)


Investments purchased (704,134) (226,734)Receivable for securities sold (7,128) 14,624 Accrued expenses 1,161 (165)Payable for securities purchased (982) (29,088)

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES (361,528) 539,387


NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 350,041 (470,248)


Cash (bank overdraft), beginning of period (278) (68,897)

CASH (BANK OVERDRAFT), END OF PERIOD (11,765) 242



DFS GIF – BALANCED – ETHICAL (cont.)





Fair Value

$ $

INVESTMENT FUND (100.2%)NEI Ethical Balanced Fund, Series I 589,957 6,970,274 8,067,907



NET ASSETS (100%) 8,053,228




Government of Canada, 1 .50%, June 1, 2023 9 .6%Element Financial Corporation 3 .6%Tesla Motors 3 .2%Skyworks Solutions 3 .1%Royal Bank of Canada, 2 .98%, May 7, 2019 2 .9%Government of Canada, 4 .00%, June 1, 2041 2 .9%Manulife Financial Corporation 2 .8%Dollarama 2 .7%Apple 2 .6%Regeneron Pharmaceuticals 2 .5%Toronto-Dominion Bank 2 .5%Royal Bank of Canada 2 .4%Boyd Group Income Fund 2 .3%Toronto-Dominion Bank, 2 .171%, April 2, 2018 2 .2%Methanex Corporation 2 .0%Visa 2 .0%McDonald’s Corporation 2 .0%Intesa Sanpaolo 1 .7%Canadian Natural Resources, 2 .89%, August 14, 2020 1 .7%Biogen Idec Inc . 1 .7%Magna International 1 .7%Suncor Energy 1 .7%JPMorgan Chase & Company 1 .6%Scotiabank, 2 .37%, January 11, 2018 1 .6%Scotiabank, 2 .242%, March 22, 2018 1 .6%



as at June 30, 2015


Investment ObjectiveTo provide the investor with long term returns and a high level of current income by investing primarily in a mix of Canadian and American equities and fixed income investments .

Investment StrategyThe allocation to each of the Fund’s asset classes is actively managed . For the Fund’s Canadian equity portion, securities are selected using a growth-at-a-reasonable-price (GARP) approach, which stresses valuation criteria and fundamental analysis . Global equities are identified by both risk and return criteria . The fixed-income portion employs sector management, maturity strategies, and limited rate-anticipation strategies . The Fund follows a socially responsible approach to investing .













DFS GIF – BALANCED – ETHICAL (cont.)




as at June 30, 2015



Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .As at June 30, 2015 and December 31, 2014, the Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmarks, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .



Benchmarks % $ $FTSE TMX Canada Universe (50%) 1 .00 36,241 38,398S&P/TSX (40%) 3 .00 86,979 92,156MSCI World Net (10%) 3 .00 21,745 23,039






DFS GIF – INCOME AND GROWTH – CI SIGNATURE



As atJune 30

2015December 31

2014$ $


ASSETSCurrent AssetsCash 836 7,085 Investments at fair value through profit


69,519,983 58,556,919


404,010 295,443




2015 2014$ $


Net realized gain (loss) on investments 1,443,858 900,210 Net unrealized gain (loss) on investments (83,027) 2,013,077

2,364,471 3,743,942


990,767 706,313
















$ $



PremiumsSeries 5 6,617,045 6,561,784 Series 6* 8,141,097 1,286,132 Series 7* 397,527 176,001

15,155,669 8,023,917

WithdrawalsSeries 5 (5,020,712) (1,725,674)Series 6* (616,060) (5,984)Series 7* (38,104) —

(5,674,876) (1,731,658)



2015 2014$ $



Adjustments for:Net realized gain (loss) (1,443,858) (900,210)Net unrealized gain (loss) 83,027 (2,013,077)


Investments purchased (12,369,442) (7,973,388)Receivable for securities sold (4,744) (35,568)Accrued expenses 30,309 26,784 Payable for securities purchased 40,586 (111,009)






CASH (BANK OVERDRAFT), END OF PERIOD 836 (24,194)





Fair Value

$ $

INVESTMENT FUND (100.2%)Signature Income & Growth Fund, Class I 6,832,654 65,032,560 69,283,109



NET ASSETS (100%) 69,115,973




Scotiabank 4 .0%Toronto-Dominion Bank 3 .7%Royal Bank of Canada 3 .7%Canadian National Railway Company 1 .5%Citigroup 1 .2%Singapore Telecommunications Ltd 1 .2%UBS Group AG 1 .1%Alimentation Couche-Tard 1 .1%Power Corporation of Canada 1 .0%Apple 1 .0%AstraZeneca 1 .0%Novartis AG 0 .9%Enbridge 0 .8%JPMorgan Chase & Company 0 .8%Telstra Corporation Ltd 0 .8%Roche Holding AG 0 .8%NXP Semiconductor 0 .8%Bristol-Myers Squibb Company 0 .7%Province of Quebec, 4 .50%, December 1, 2019 0 .7%Telefonica Deutschland 0 .7%Total SA 0 .7%Province of Ontario, 4 .20%, June 2, 2020 0 .7%Loblaw Companies 0 .6%Thermo Fisher Scientific 0 .6%Nestlé SA 0 .6%

DFS GIF – INCOME AND GROWTH – CI SIGNATURE (cont.)




as at June 30, 2015


Investment ObjectiveThe objective of this Fund is to provide a steady flow of current income while preserving capital by obtaining exposure primarily to equity, equity related and fixed income securities of Canadian issuers .

Investment StrategyThe Fund invests in a combination of equity, fixed income and derivatives . Broadly diversified by sector and style, preferred and common shares make up portions of the Fund’s investments in equity securities . The fixed income portion of the Fund’s investments is comprised of high-yielding government and corporate bonds, debentures and notes, including some securities that are unrated or have credit ratings below investment grade . The Fund may also invest in real estate investment trusts (REITs), royalty trusts, income trusts and other similar high yielding instruments .















as at June 30, 2015



Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s best estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, with all other variables held constant, is as follows:



Benchmarks % $ $FTSE TMX Canada Universe (15%) 1 .00 103,674 87,392Merrill Lynch High Yield Master II (15%) 2 .00 207,348 174,784S&P/TSX Composite High Dividend (10%) 3 .00 207,348 174,784S&P/TSX (30%) 3 .00 622,044 524,353MSCI All Country World Net (30%) 3 .00 622,044 524,353




DFS GIF – INCOME AND GROWTH – CI SIGNATURE (cont.)




DFS GIF – GROWTH AND INCOME – NORTHWEST



As atJune 30

2015December 31

2014$ $




156,356,926 156,107,663


741,014 700,118




2015 2014$ $

INCOMEDividends 2 519 657 8 490 588 Changes in fair value:

Net realized gain (loss) on investments 2 451 644 808 861 Net unrealized gain (loss) on investments 2 368 064 861 407

7 339 365 10 160 856


2,334,946 2,174,843 Withholding taxes 96,913 112,933

2,431,859 2,287,776



















$ $




9,035,177 11,429,585

WithdrawalsSeries 3 (338,319) (188,294)Series 5 (12,286,962) (7,151,816)Series 6* (1,105,233) (16,718)Series 7* (3,802) —

(13,734,316) (7,356,828)



2015 2014$ $



Adjustments for:Net realized gain (loss) (2,451,644) (808,861)Net unrealized gain (loss) (2,368,064) (861,407)


Investments purchased (4,473,840) (13,758,179)Receivable for securities sold — 5,556 Accrued expenses 6,600 38,874 Payable for securities purchased (76,838) 52,360








DFS GIF – GROWTH AND INCOME – NORTHWEST (cont.)





Fair Value

$ $

INVESTMENT FUND (100.1%)NEI Northwest Growth and Income Fund, Series I 23,867,102 114,033,950 155,828,309



NET ASSETS (100%) 155,615,912




NEI Northwest Global Equity Fund 34 .4%NEI Canadian Bond Fund 20 .8%Canadian Imperial Bank of Commerce 4 .0%Toronto-Dominion Bank 3 .9%Manulife Financial Corporation 3 .1%TELUS Corporation 3 .0%Québecor 2 .8%BCE 2 .5%Onex Corporation 2 .2%Sun Life Financial 2 .2%Granite Real Estate Investment Trust 2 .1%Rogers Communications 2 .0%Thomson Reuters Corporation 1 .9%Colliers International Group 1 .9%Bombardier 1 .8%FirstService Corporation 1 .7%Ensign Resource Service Group 1 .5%H&R Real Estate Investment Trust 1 .2%Pason Systems 1 .0%Birchcliff Energy Ltd 0 .8%Vermilion Energy 0 .8%Equitable Group 0 .7%Extendicare 0 .7%TMX Group 0 .7%Badger Daylighting 0 .6%



as at June 30, 2015


Investment ObjectiveTo provide a consistent stream of income and capital appreciation by investing primarily in a mix of Canadian equities and fixed-income securities .

Investment StrategyTo invest in a diversified portfolio consisting primarily of a balance of large cap equity and investment grade fixed-income securities issued principally by Canadian issuers .







Financial Assets at FVTPLInvestment Funds 155,523,963 — — 155,523,963TOTAL 155,523,963 — — 155,523,963






DFS GIF – GROWTH AND INCOME – NORTHWEST (cont.)




as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (25%) 1 .00 302,186 333,592S&P/TSX (55%) 3 .00 1,994,429 2,201,707MSCI World Net (20%) 3 .00 725,247 800,621






DFS GIF – GLOBAL GROWTH – NORTHWEST SELECT



As atJune 30

2015December 31

2014$ $




79,077,599 72,990,664


419,942 370,318




2015 2014$ $


Net realized gain (loss) on investments 886,772 900,689 Net unrealized gain (loss) on investments 4,147,190 3,691,156

5,033,962 4,591,845


1,230,595 1,129,271



















$ $




6,733,738 3,218,123

WithdrawalsSeries 3 (390,071) (888,271)Series 5 (3,959,230) (2,961,084)Series 6* (146,647) (971)Series 7* (3,846) —

(4,499,794) (3,850,326)



2015 2014$ $



Adjustments for:Net realized gain (loss) (886,772) (900,689)Net unrealized gain (loss) (4,147,190) (3,691,156)


Investments purchased (3,778,807) (1,783,133)Receivable for securities sold (6,667) 11,405 Accrued expenses 19,199 10,831 Payable for securities purchased 3,271 (42,675)



NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES 2,213,681 (547,238)








Fair Value

$ $

INVESTMENT FUND (100.2%)NEI Select Global Growth Portfolio, Series I 6,502,738 55,315,610 78,819,038



NET ASSETS (100%) 78,657,657




NEI Ethical Global Equity Fund 12 .2%NEI Northwest Global Equity Fund 12 .2%NEI Global Total Return Bond Fund 12 .1%NEI Ethical International Equity Fund 11 .0%NEI Northwest U .S . Dividend Fund 10 .9%NEI Northwest Macro Canadian Asset Allocation Fund 9 .4%NEI Northwest Specialty Equity Fund 8 .2%NEI Northwest Emerging Markets Fund 6 .9%NEI Canadian Bond Fund 5 .1%NEI Northwest Canadian Equity Fund 5 .1%NEI Northwest Canadian Dividend Fund 5 .0%NEI Northwest Specialty Global High Yield Bond Fund 3 .1%Cash and Cash Equivalents -1 .2%

DFS GIF – GLOBAL GROWTH – NORTHWEST SELECT (cont.)




as at June 30, 2015


Investment ObjectiveTo provide a balance of capital growth and interest income by investing primarily in units of individual underlying funds in order to gain the desired exposure to the equity and fixed income markets .

Investment StrategyTo emphasize investments in equity underlying funds in order to increase the potential for capital appreciation over a longer investment horizon . The Fund also invests, to a lesser extent, in fixed income underlying funds in order to provide income and capital preservation .

FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT (NOTE 7)














as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (30%) 1 .00 244,633 259,340S&P/TSX (14%) 3 .00 342,487 363,077MSCI World Net (56%) 3 .00 1,369,947 1,452,307




DFS GIF – GLOBAL GROWTH – NORTHWEST SELECT (cont.)




DFS GIF – GLOBAL BALANCED – JARISLOWSKY FRASER



As atJune 30

2015December 31

2014$ $




158,088,840 153,314,244

LIABILITIESCurrent LiabilitiesAccrued expenses 382,059 364,080 Withdrawals payable 385,048 393,494 Payable for securities purchased — 172,235

767,107 929,809




2015 2014$ $

INCOMEInterest for attribution purposes 946,943 976,867 Dividends 1,417,372 1,245,689 Changes in fair value:


8,304,891 8,921,087


2,306,896 2,158,407 Withholding taxes 112,481 51,679

2,419,377 2,210,086












$ $



PremiumsSeries 3 651,555 531,588 Series 5 11,430,277 9,539,623

12,081,832 10,071,211

WithdrawalsSeries 3 (753,755) (1,341,542)Series 5 (12,276,293) (8,819,333)

(13,030,048) (10,160,875)



2015 2014$ $





Investments purchased (10,018,616) (4,411,626)Receivable for securities sold (25,198) 23,676 Accrued expenses 17,979 23,070 Payable for securities purchased (172,235) —

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 797,295 (91,717)


NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (1,113,165) 67,236




DFS GIF – GLOBAL BALANCED – JARISLOWSKY FRASER (cont.)





Fair Value

$ $

INVESTMENT FUND (100.0%)Jarislowsky Fraser Global Balanced Fund 11,790,359 116,428,788 157,284,340



NET ASSETS (100%) 157,321,733




Jarislowsky Fraser International Pooled Fund 20 .5%Toronto-Dominion Bank 1 .6%Jarislowsky Fraser Special Equity Fund 1 .5%Government of Canada, 3 .50%, December 1, 2045 1 .5%Royal Bank of Canada 1 .3%Scotiabank 1 .3%Jarislowsky Fraser Special Bond Fund 1 .2%Province of Ontario, 2 .85%, June 2, 2023 1 .0%Microsoft Corporation 1 .0%Fiserv 1 .0%Government of Canada, 4 .00%, June 1, 2041 0 .9%Toronto-Dominion Bank, Floating Rate, December 14, 2105 0 .9%CVS Caremark Corporation 0 .9%Suncor Energy 0 .9%Bank of Montreal, Floating Rate, April 21, 2021 0 .8%Canadian National Railway Company 0 .8%Enbridge 0 .8%Walgreens Boots Alliance 0 .8%Manulife Financial Corporation 0 .8%Time Warner Cable 0 .8%MetLife Global Funding, 2 .682%, April 16, 2019 0 .8%Government of Canada, 5 .75%, June 1, 2029 0 .8%Province of Manitoba, 4 .05%, September 5, 2045 0 .8%Canadian Natural Resources 0 .7%Metro 0 .7%



as at June 30, 2015


Investment ObjectiveTo provide investors with an opportunity to achieve a high rate of return by investing in a diversified portfolio consisting of a balance of equity and fixed-income securities of issuers located throughout the world .

Investment StrategyTo provide such an opportunity through a diversified portfolio consisting of a balance of mainly large cap equity and mainly investment grade fixed-income securities of issuers located throughout the world .





Financial Assets at FVTPLInvestment Funds — 157,284,340 — 157,284,340 TOTAL — 157,284,340 — 157,284,340







Currency RiskAs at June 30, 2015 and December 31, 2014, the majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which may be exposed to currency risk . As a result, the Fund may be exposed to currency risk related to the current underlying fund . Detailed disclosure about the currency risk on the underlying fund can be obtained from Desjardins Financial Security (see Note7) .

DFS GIF – GLOBAL BALANCED – JARISLOWSKY FRASER (cont.)




as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada 91 Day Treasury Bills (6%) 0 .25 22,374 20,534FTSE TMX Canada Universe (40%) 1 .00 596,645 547,570S&P/TSX (22%) 3 .00 984,464 903,491S&P 500 (16%) 3 .00 715,973 657,084MSCI EAFE Net (16%) 3 .00 715,973 657,084






DFS GIF – CANADIAN ASSET ALLOCATION – CI CAMBRIDGE



As atJune 30

2015December 31

2014$ $




8,532,976 6,717,435


56,027 20,015




2015 2014$ $

INCOMEDividends 32,062 26,556 Changes in fair value:


343,352 373,947


110,171 69,112
















$ $



PremiumsSeries 5 816,100 2,061,579 Series 6* 1,501,807 500,991 Series 7* 2,000 1,001

2,319,907 2,563,571

WithdrawalsSeries 5 (640,789) (409,047)Series 6* (132,770) (3,210)Series 7* — —

(773,559) (412,257)



2015 2014$ $










Cash (bank overdraft), beginning of period 2,001 (1)






Fair Value

$ $

INVESTMENT FUND (100.2%)Cambridge Canadian Asset Allocation Corporate Class, I Shares 471,328 7,670,913 8,498,043



NET ASSETS (100%) 8,476,949




Cambridge Bond Fund 19 .0%Brookfield Infrastructure Partners 4 .0%Tourmaline Oil Corporation 3 .8%George Weston 3 .3%US Bancorp 3 .2%Brookfield Asset Management 2 .8%CGI Group 2 .5%Thomson Reuters Corporation 2 .4%Franco-Nevada Corporation 2 .3%Walgreens Boots Alliance 2 .2%ITC Holdings 2 .0%Prologis 1 .9%PrairieSky Royalty Ltd 1 .6%Teledyne Technologies 1 .6%H&R Block 1 .5%Union Pacific Corporation 1 .5%EnCana Corporation 1 .5%Computer Sciences 1 .4%Ecolab 1 .3%Google 1 .2%Electronic Arts 1 .2%Dollar Tree Stores Inc . 1 .1%Allison Transmission Holdings Inc . 1 .1%Amgen 1 .0%Six Flags Entertainment 1 .0%

DFS GIF – CANADIAN ASSET ALLOCATION – CI CAMBRIDGE (cont.)




as at June 30, 2015


Investment ObjectiveThe objective of this Fund is to achieve a superior total investment return directly or indirectly, in a combination of primarily equity and fixed income securities of Canadian companies . Indirect investments may include convertible securities, derivatives, equity-related securities and securities of other mutual funds .

Investment StrategyThe Fund is actively managed with a disciplined bottom-up selection process . The strategy uses exposure in equity, fixed income instruments and cash and cash equivalents to achieve the Fund objective . The investments in each asset class will vary dependent on market conditions . The Canadian fixed income securities portion of the portfolio will consist mainly of high quality government and corporate bonds while foreign securities can make up part of the equity portion of the portfolio .















as at June 30, 2015



Price RiskThe majority of the Net Assets Attributable to Contract Owners are invested in an underlying fund which is exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying fund . Detailed disclosure about the price risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s best estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, with all other variables held constant, is as follows:



Benchmarks % $ $FTSE TMX Canada Universe (40%) 1 .00 33,908 26,790S&P/TSX (60%) 3 .00 152,585 120,554




DFS GIF – CANADIAN ASSET ALLOCATION – CI CAMBRIDGE (cont.)




DFS GIF – GROWTH – QUOTENTIAL



As atJune 30

2015December 31

2014$ $




62,684,093 59,874,997

LIABILITIESCurrent LiabilitiesBank overdraft 1,995 5,487 Accrued expenses 169,618 160,416 Withdrawals payable 59,407 63,227 Payable for securities purchased 23,361 473

254,381 229,603




2015 2014$ $



5,537,944 3,359,870


1,018,736 976,216



















$ $



PremiumsSeries 3 74,311 329,238 Series 5 804,953 1,423,004 Series 6* 1,363,159 66,895 Series 7* 3,146 1,001

2,245,569 1,820,138

WithdrawalsSeries 3 (371,738) (578,119)Series 5 (3,428,688) (2,599,200)Series 6* (180,033) (70)Series 7* — —

(3,980,459) (3,177,389)



2015 2014$ $





Investments purchased (808,249) (870,231)Receivable for securities sold 18,016 7,652 Accrued expenses 9,202 7,562 Payable for securities purchased 22,888 (918)






CASH (BANK OVERDRAFT), END OF PERIOD (1,995) (648)

SUPPLEMENTAL INFORMATION ON CASH FLOWSInterest paid — 384


DFS GIF – GROWTH – QUOTENTIAL (cont.)





Fair Value

$ $

INVESTMENT FUND (100.3%)Franklin Quotential Growth Portfolio 5,527,167 34,969,768 62,622,806



NET ASSETS (100%) 62,429,712




Franklin Bissett Core Plus Bond Fund 11 .0%Franklin U .S . Core Equity Fund 7 .5%Templeton Asian Growth Fund 6 .6%SPDR Euro Stoxx 50 ETF 6 .6%Franklin Mutual European Fund 6 .3%Franklin Bissett Canadian Equity Fund 5 .8%Franklin Flex Cap Growth Fund 5 .8%Franklin U .S . Rising Dividends Fund 5 .5%Franklin Bisset All Canadian Focus Fund 4 .6%WisdomTree Japan Hedged Equity ETF 3 .3%Franklin Templeton Canadian Large Cap Fund 3 .1%Templeton Global Bond Fund 3 .0%Franklin Mutual Global Discovery Fund 2 .9%iShares MSCI Japan ETF 2 .7%Franklin World Growth Fund 2 .6%Templeton International Stock Fund 2 .1%Franklin European Small-Mid Cap Growth Fund 2 .0%Franklin Bissett Small Cap Fund 1 .9%Franklin Japan Fund 1 .7%Franklin Strategic Income Fund 1 .4%iShares MSCI Japan Small-Cap ETF 1 .4%iShares Intermediate Credit Bond ETF 1 .1%iShares Russell 1000 Value ETF 1 .0%iShares MSCI China ETF 0 .9%BMO Mid Federal Bond Index ETF 0 .9%



as at June 30, 2015



Investment StrategyTo emphasize investments in a diversified mix of equity underlying funds in order to increase the potential for capital appreciation over a longer investment horizon . The Fund also invests, to a lesser extent, in fixed income underlying funds in order to provide income and capital preservation .













DFS GIF – GROWTH – QUOTENTIAL (cont.)




as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (15%) 1 .00 93,328 96,012Barclays Capital Multiverse (Hedged) (5%) 1 .00 31,109 32,004S&P/TSX (35%) 3 .00 653,294 672,086MSCI All Country World Net (45%) 3 .00 839,949 864,111






DFS GIF – GLOBAL HIGH INCOME – MULTI-MANAGERS



As atJune 30

2015December 31

2014$ $




or loss (FVTPL) pledged as collateral 3,235,000 5,056,814 Premiums receivable 61,190 13,484 Receivable for securities sold 66,658 50,283 Cash guarantee received for

repurchase transactions — 92,977 Interest, dividends and other receivables 72,436 56,914

23,323,427 23,292,578

LIABILITIESCurrent LiabilitiesAccrued expenses 54,327 52,116 Withdrawals payable 11,381 11,437 Payable for securities purchased 98,107 151,384 Commitments related to

repurchase transactions — 92,977 163,815 307,914




2015 2014$ $

INCOMEInterest for attribution purposes 119,770 118,661 Dividends 452,972 245,959 Revenue from securities lending and

repurchase transactions 1,512 2,624 Foreign exchange gain (loss) on cash 153 (72)Changes in fair value:

Net realized gain (loss) on investments 346,469 565,810 Net unrealized gain (loss) on investments (458,265) 1,251,594

462,611 2,184,576


339,132 301,971 Withholding taxes 31,888 —Commissions and other portfolio

transaction costs 9,989 6,809 381,009 308,780












from Operations 6 63 - per unit — 0 .32







$ $



PremiumsSeries 3 484,879 293,173 Series 5 1,580,168 1,711,150 Series 6* 679,694 262,861 Series 7* 2,000 1,001

2,746,741 2,268,185

WithdrawalsSeries 3 (661,998) (529,444)Series 5 (1,878,882) (929,782)Series 6* (112,515) (893)Series 7* — —

(2,653,395) (1,460,119)



2015 2014$ $




on cash (153) 72 Net realized gain (loss) (346,469) (565,810)Net unrealized gain (loss) 458,265 (1,251,594)


Investments purchased (5,978,204) (4,154,292)Receivable for securities sold (16,375) (248,584)Cash guarantee received for

repurchase transactions 92,977 —Interest, dividends and other

receivables (15,522) (8,111)Accrued expenses 2,211 6,529 Commitments related to

repurchase transactions (92,977) —Payable for securities purchased (53,277) 279,618

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 12,014 (844,590)



Effect of exchange rate changes on foreign cash (60) (121)




SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest received 14,596 11,604 Dividends received,

net of withholding taxes 271,594 237,042 Interest paid 3 20




as at June 30, 2015


EQUITIES (49.5%)

CANADIAN EQUITIES (46.9%)

Energy (13.6%)ARC Resources* 19,200 469,204 410,880 Baytex Energy Corp .* 7,800 142,101 151,554 Crescent Point Energy* 17,225 682,191 441,477 Husky Energy* 11,375 302,242 271,749 Inter Pipeline 14,025 356,888 402,518 Pembina Pipeline Corporation 10,912 434,029 440,517 Vermilion Energy 8,483 468,100 457,658 Whitecap Resources 44,125 497,979 581,568

3,352,734 3,157,921

Materials (2.1%)Agrium 3,225 362,495 426,893 Chemtrade Logistics Income Fund 2,944 60,210 59,763

422,705 486,656

Industrials (2.6%)Russel Metals 9,700 264,295 220,481 WSP Global* 9,350 267,599 367,548

531,894 588,029

Consumer Discretionary (1.1%)Thomson Reuters Corporation 5,126 166,578 243,793

Financials (18.9%)Canadian Apartment Properties Real Estate Investment Trust 6,393 161,765 176,447 Canadian Imperial Bank of Commerce* 7,918 672,921 729,010 Cominar Real Estate Investment Trust, Class U 28,800 524,368 510,624 IGM Financial* 9,050 424,617 360,009 Power Financial Corporation 19,356 706,665 694,300 RioCan Real Estate Investment Trust* 15,550 405,803 416,274 Royal Bank of Canada 8,025 549,723 612,950 Scotiabank 13,500 882,201 870,345

4,328,063 4,369,959

Telecommunication Services (5.9%)BCE* 16,616 882,881 881,645 Manitoba Telecom Services 4,850 157,455 135,364 TELUS Corporation 8,300 323,697 357,149

1,364,033 1,374,158

Utilities (2.7%)Capital Power Corporation 11,190 244,762 241,033 Superior Plus Corp . 30,775 397,078 386,534

641,840 627,567

TOTAL CANADIAN EQUITIES 10,807,847 10,848,083


DFS GIF – GLOBAL HIGH INCOME – MULTI-MANAGERS (cont.)




as at June 30, 2015


FOREIGN EQUITIES (2.6%)

Bermuda Brookfield Renewable Power 16,500 533,897 612,808

TOTAL EQUITIES 11,341,744 11,460,891

Number of Units

INVESTMENT FUNDS (49.6%)

BlackRock® CDN Global Developed Real Estate Index Fund, Class D 552,716 7,981,312 8,520,944 NEI Northwest Specialty Global High Yield Bond Fund, Series I 356,273 2,879,620 2,973,706

TOTAL INVESTMENT FUNDS 10,860,932 11,494,650

Par Value


Canada Treasury Bills 2015-09-10 CAD 55,000 54,938 54,938




NET ASSETS (100%) 23,159,612




as at June 30, 2015



BLACKROCK CDN GLOBAL DEVELOPED REAL ESTATE INDEX FUND 36.8%

Simon Property Group 4 .3 %Mitsubishi Estate Company 2 .2 %Sun Hung Kai Properties 2 .2 %Public Storage 2 .2 %Mitsui Fudosan Company 2 .1 %

NEI NORTHWEST SPECIALTY GLOBAL HIGH YIELD BOND FUND 12.8%

General Motors Corporation, 4 .875%, October 2, 2023 1 .7 %VRX Escrow Corporation, 5 .875%, May 15, 2023 1 .3 %Sprint Corporation, 7 .25%, September 15, 2021 1 .2 %Consolidated Energy, 6 .75%, October 15, 2019 1 .2 %Fiat Chrysler Automobiles, 5 .25%, April 15, 2023 1 .2 %





as at June 30, 2015


Investment ObjectiveTo actively manage a diversified portfolio of income generating securities .

Investment StrategyTo invest primarily in global real estate investment trusts, income trusts and other securities issued by Canadian and non-Canadian governments, financial institutions and companies .





Financial Assets at FVTPLEquities 11,460,891 — — 11,460,891 Investment Funds 2,973,706 8,520,944 — 11,494,650 Money Market Securities 54,938 — — 54,938 TOTAL 14,489,535 8,520,944 — 23,010,479


Financial Assets at FVTPLEquities 11,500,470 — — 11,500,470 Index-Based Investments 70,851 — — 70,851 Investment Funds 2,947,032 8,325,746 — 11,272,778 Money Market Securities 179,695 — — 179,695 TOTAL 14,698,048 8,325,746 — 23,023,794




Currency RiskAs at June 30, 2015 and December 31, 2014, part of the Net Assets Attributable to Contract Owners are invested in underlying funds which may be exposed to currency risk . As a result, the Fund may be exposed to currency risk related to the current underlying funds . Detailed disclosure about the currency risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .As at June 30, 2015 and December 31, 2014, the majority of the Fund’s financial assets and liabilities are denominated in Canadian dollars . As a result, the Fund is not significantly exposed to currency risk .



as at June 30, 2015

Interest Rate RiskAs at June 30, 2015 and December 31, 2014, part of the Net Assets Attributable to Contract Owners are invested in underlying funds which may be exposed to interest rate risk . As a result, the Fund may be exposed to interest rate risk related to the current underlying funds . Detailed disclosure about the interest rate risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .As at June 30, 2015 and December 31, 2014, the majority of the Fund’s financial assets and liabilities are non-interest bearing . As a result, the Fund is not subject to significant amounts of risk arising from fluctuations in the prevailing levels of market interest rates .

Concentration RiskPart of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to concentration risk . As a result, the Fund is exposed to concentration risk related to the current underlying funds . Detailed disclosure about the concentration risk on the underlying fund can be obtained from Desjardins Financial Security (see Note 7) .The following table summarizes the concentration risk, as in percentages of the Net Assets Attributable to Contract Owners:

June 30, 2015MARKET SEGMENT %Canadian Equities

Financials 18 .9 Energy 13 .6 Telecommunication Services 5 .9 Utilities 2 .7 Industrials 2 .6 Materials 2 .1 Consumer Discretionary 1 .1

Foreign Equities 2 .6 Investment Funds 49 .6 Money Market Securities 0 .2 Other Net Assets 0 .7 TOTAL 100

December 31, 2014MARKET SEGMENT %Canadian Equities

Financials 16 .7Energy 15 .3Telecommunication Services 4 .8Materials 3 .1Utilities 3 .1Consumer Discretionary 2 .5Industrials 2 .4Information Technology 0 .9

Foreign Equities 1 .3Investment Funds 49 .0Money Market Securities 0 .8Index-Based Investments 0 .3Other Net Assets (0 .2)TOTAL 100





as at June 30, 2015

Price RiskThe Fund may trade in financial instruments and take positions in traded and over-the-counter instruments .Part of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to price risk . As a result, the Fund is exposed to price risk related to the current underlying funds . Detailed disclosure about the price risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmarks, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .



Benchmarks % $ $Barclays Capital U .S . High Yield 2% Issuer

Capped Bond (15%) 2 .00 66,486 69,499S&P/TSX Composite High Dividend (50%) 3 .00 332,429 347,497FTSE EPRA/NAREIT Developed Net (35%) 3 .00 232,700 243,248


Credit RiskAs at June 30, 2015 and December 31, 2014, part of the Net Assets Attributable to Contract Owners are invested in underlying funds which may be exposed to credit risk . As a result, the Fund may be exposed to credit risk related to the current underlying funds . Detailed disclosure about the credit risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .As at June 30, 2015 and December 31, 2014, the Fund had no significant investments in either fixed-income securities, money market securities and derivative financial instruments . As a result, the Fund is not significantly exposed to credit risk .


$June 30, 2015 —December 31, 2014 89,870


$June 30, 2015 —December 31, 2014 58,320


$June 30, 2015 1,211 December 31, 2014 3,104


Liquidity RiskAs at June 30, 2015 and December 31, 2014, part of the Net Assets Attributable to Contract Owners are invested in underlying funds which are exposed to liquidity risk . As a result, the Fund is exposed to liquidity risk related to the current underlying funds . Detailed disclosure about the liquidity risk on the underlying funds can be obtained from Desjardins Financial Security (see Note 7) .For further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .



as at June 30, 2015



June 30, 2015 December 31, 2014$ $





$ $Financial Assets — 89 870 Related Liabilities — 89 876





DFS GIF – DIVIDEND INCOME – BISSETT

Canadian Equity



As atJune 30

2015December 31

2014$ $




130,392,198 146,357,461

LIABILITIESCurrent LiabilitiesBank overdraft 11,542 —Accrued expenses 333,982 362,421 Withdrawals payable 423,921 51,325 Payable for securities purchased — 22,157

769,445 435,903




2015 2014$ $

INCOMEDividends 1,674,651 1,635,502 Changes in fair value:


(1,706,270) 10,092,029


2,106,656 2,194,335

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS (3,812,926) 7,897,694


from Operations (867,069) 1,772,952 - per unit (0.33) 0 .59



from Operations (2,793,316) 6,091,235 - per unit (0.32) 0 .65













$ $


from operations attributable to contract owners (3,812,926) 7,897,694

PremiumsSeries 3 865,761 1,618,696 Series 5 4,342,637 9,127,662 Series 6* 1,326,776 1,587,103 Series 7* 107,831 401,001

6,643,005 12,734,462

WithdrawalsSeries 3 (3,846,614) (5,348,650)Series 5 (14,564,766) (7,769,833)Series 6* (501,827) (13,832)Series 7* (215,677) (750)

(19,128,884) (13,133,065)



2015 2014$ $





Investments purchased (1,723,432) (5,082,677)Receivable for securities sold (362,145) (16,929)Accrued expenses (28,439) 23,947 Payable for securities purchased (22,157) 76,659

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 12,064,227 413,784


NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (12,080,147) (430,714)





DFS GIF – DIVIDEND INCOME – BISSETT (cont.)

Canadian Equity




Fair Value

$ $

INVESTMENT FUND (100.3%)Franklin Bissett Dividend Income Fund, Series O 3,229,245 102,534,863 129,976,711



NET ASSETS (100%) 129,622,753




Canadian Imperial Bank of Commerce 3 .7%Royal Bank of Canada 3 .2%Toronto-Dominion Bank 3 .1%Power Financial Corporation 3 .0%Scotiabank 3 .0%Bank of Montreal 2 .8%National Bank of Canada 2 .6%Enbridge 2 .6%Enbridge Income Fund Holdings Inc . 2 .3%Thomson Reuters Corporation 2 .3%IGM Financial 2 .2%Canadian National Railway Company 1 .8%Kraft Foods Inc . 1 .7%Mullen Group Ltd 1 .6%Keyera Corporation 1 .6%ARC Resources 1 .5%Wells Fargo & Company 1 .5%JPMorgan Chase & Company 1 .5%Russel Metals 1 .4%General Electric Company 1 .4%Johnson & Johnson 1 .4%Pfizer 1 .3%Capital Power Corporation 1 .3%Fortis 1 .3%Merck & Company 1 .3%



as at June 30, 2015


Investment ObjectiveTo provide the investor with a consistent return through investment in dividend paying common shares and preferred shares .

Investment StrategyTo invest in a diversified portfolio of large cap Canadian issuer preferred shares and common shares as well as common shares of large cap United States issuers with long histories of dividend growth . From time to time the Fund also invests in investment grade interest-bearing securities to a maximum of 25% of the total assets of the Fund .













DFS GIF – DIVIDEND INCOME – BISSETT (cont.)

Canadian Equity



as at June 30, 2015






Benchmarks % $ $FTSE TMX Canada Universe (15%) 1 .00 178,420 163,315S&P/TSX Preferred Share (5%) 3 .00 178,420 163,315S&P/TSX (60%) 3 .00 2,141,044 1,959,779S&P 500 (20%) 3 .00 713,681 653,260





DFS GIF – CANADIAN DIVIDEND – FIERA

Canadian Equity



As atJune 30

2015December 31

2014$ $




or loss (FVTPL) pledged as collateral 16,587,041 22,579,386 Premiums receivable 32,090 80,260 Receivable for securities sold 148,615 2,462,303 Cash guarantee received for

repurchase transactions 459,105 269,986 Interest, dividends and other receivables 248,847 254,995

114,455,849 130,797,257

LIABILITIESCurrent LiabilitiesBank overdraft — 209,544 Accrued expenses 241,440 264,896 Withdrawals payable 338,456 129,730 Payable for securities purchased 62,216 1,312,457 Commitments related to

repurchase transactions 459,105 269,986 1,101,217 2,186,613




2015 2014$ $

INCOMEInterest for attribution purposes 28,209 61,298 Dividends 2,088,802 2,542,707 Revenue from securities lending and

repurchase transactions 9,159 9,426 Foreign exchange gain (loss) on cash 30 (463)Changes in fair value:

Net realized gain (loss) on investments 869,516 4,370,942 Net unrealized gain (loss) on investments (6,687,607) 5,527,414

(3,691,891) 12,511,324


1,529,451 1,699,198 Commissions and other portfolio

transaction costs 68,203 97,764 1,597,654 1,796,962






















$ $



PremiumsSeries 1 24,541 451,397 Series 3 357,477 414,641 Series 5 1,531,073 1,626,523 Series 6* 475,832 175,475 Series 7* — 1,001

2,388,923 2,669,037

WithdrawalsSeries 1 (433,768) (763,208)Series 3 (2,336,295) (2,526,774)Series 5 (9,497,605) (8,855,772)Series 6* (87,722) (1,177)Series 7* — —

(12,355,390) (12,146,931)



2015 2014$ $




on cash (30) 463 Net realized gain (loss) (869,516) (4,370,942)Net unrealized gain (loss) 6,687,607 (5,527,414)


Investments purchased (34,091,255) (73,507,813)Receivable for securities sold 2,313,688 (1,493,137)Cash guarantee received for

securities lending — 713,869 Cash guarantee received for

repurchase transactions (189,119) 4,466 Interest, dividends and other

receivables 6,148 (89,858)Accrued expenses (23,456) 3,470 Commitments related to

securities lending — (713,869)Commitments related to

repurchase transactions 189,119 (4,466)Payable for securities purchased (1,250,241) 2,225,948




Effect of exchange rate changes on foreign cash 541 (959)




SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest received 26,519 67,573 Dividends received,

net of withholding taxes 2,095,393 2,441,796 Interest paid 36 291




as at June 30, 2015


EQUITIES (98.0%)

PREFERRED SHARES (29.6%)

Energy (5.1%)AltaGas Series A, 5 .000%, (floating rate from 2015-09-30), 2049-09-30 23,900 597,947 434,263 Enbridge Series 3, 4 .000%, (floating rate from 2019-09-01), Perpetual* 23,200 567,537 413,192 Series 7, 4 .400%, (floating rate from 2019-01-03), Perpetual 20,600 521,977 404,790 Series 13, 4 .400%, (floating rate from 2020-06-01), Perpetual 4,900 122,451 99,225 Series B, 4 .000%, (floating rate from 2017-06-01), Perpetual 13,500 342,360 237,600 Series H, 4 .000%, (floating rate from 2018-09-01), Perpetual* 12,900 325,166 217,494 Series P, 4 .000%, (floating rate from 2019-03-01), Perpetual 25,500 646,893 471,495 Series R, 4 .000%, (floating rate from 2019-06-01), Perpetual 29,400 742,316 545,370 Pembina Pipeline Corporation Series 1, 4 .250%, (floating rate from 2018-12-01), Perpetual 24,400 530,729 451,400 Series 7, 4 .500%, (floating rate from 2019-12-01), Perpetual 20,200 498,067 429,250 TransCanada Corp . Series 1, 3 .266%, (floating rate from 2019-12-31), Perpetual 31,100 757,387 634,751 Series 2, floating rate, Perpetual 23,500 572,302 438,510 Series 5, 4 .400%, (floating rate from 2016-01-30), Perpetual 30,600 757,710 500,310 TransCanada PipeLines Series 3, floating rate, Perpetual* 30,883 710,282 460,157

Series 7, 4 .400%, (floating rate from 2019-04-30), Perpetual 2,472 61,529 54,878

7,754,653 5,792,685

Financials (19.1%)Bank of Montreal Series 17, 2 .669%, (floating rate from 2018-08-25), 2049-12-31 15,050 385,686 362,705 Series 25, 3 .900%, (floating rate from 2016-08-25), Perpetual* 12,300 304,726 289,542 Series 27, 4 .000%, (floating rate from 2019-05-25), Perpetual* 44,400 1,099,413 1,032,300 Series 29, 3 .900%, (floating rate from 2019-08-25), Perpetual* 21,200 530,845 482,300 Series 31, 3 .800%, (floating rate from 2019-11-25), Perpetual 11,300 282,864 254,250 Series 33, 3 .800%, (floating rate from 2020-08-25), Perpetual 35,100 866,816 868,725 Brookfield Asset Management Series 34, 4 .200%, (floating rate rate from 2019-03-31), Perpetual 4,948 123,949 106,926 Brookfield Office Properties Series AA, 4 .750%, (floating rate from 2019-12-31), Perpetual* 37,500 937,201 772,875 Series H, 5 .750%, (floating rate from 2015-08-03), Convertible, Perpetual 25,795 663,674 646,165 Canadian Imperial Bank of Commerce Series 39, 3 .900%, (floating rate from 2019-07-31), Perpetual 83,000 2,097,887 1,913,150 Series 41, 3 .750%, (floating rate from 2020-01-31), Perpetual 37,900 898,799 855,024 Canadian Western Bank Series 5, 4 .400%, (floating rate from 2019-04-30), Perpetual* 11,600 290,957 274,572 Dundee Corporation Series 4, 5 .000%, Perpetual 8,200 146,365 142,762 Fairfax Financial Holdings Series M, 4 .750%, (floating rate from 2020-03-31), Perpetual 3,900 95,199 93,210 Great-West Lifeco Series F, 5 .900%, Perpetual* 29,600 754,402 756,280 Series N, 3 .650%, (floating rate from 2015-12-31), Perpetual 19,400 339,306 331,740 Series P, 5 .400%, 2049-12-31 25,000 627,280 636,500


DFS GIF – CANADIAN DIVIDEND – FIERA (cont.)

Canadian Equity



as at June 30, 2015


PREFERRED SHARES (cont.)

Financials (cont.)

Manulife Financial Corporation Series 2, 4 .650%, Perpetual 24,400 538,441 552,904 Series 11, 4 .000%, (floating rate from 2018-03-19), Perpetual* 5,200 131,035 128,960 Series 13, 3 .800%, Perpetual 7,700 178,678 173,250 Series 15, Class 1, 3 .900%, Perpetual 4,300 94,039 97,008 Series 19, 3 .800%, (floating rate from 2020-03-19), Perpetual 6,100 152,554 138,348 Power Financial Corporation Series S, 4 .800%, Perpetual 14,600 329,384 349,816 RioCan Real Estate Investment Trust Series A, 5 .250%, (floating rate from 2016-03-31), Perpetual 23,600 557,642 470,820 Royal Bank of Canada Series AD, 4 .500%, (floating rate from 2015-08-04), Perpetual 23,200 586,788 588,584 Series AZ, 4 .000%, (floating rate from 2019-05-24), Perpetual 30,500 752,398 715,225 Series BB, 3 .900%, Perpetual 43,200 1,096,062 991,440 Series BD, 3 .600%, (floating rate from 2020-05-24), Perpetual 31,300 784,825 774,675 Series BF, 3 .600%, (floating rate from 2020-11-24), Perpetual 21,400 521,090 522,374 Series BH, 4 .900%, (floating rate from 2020-11-24), Perpetual 12,900 319,546 324,048 Series W, 4 .900%, (floating rate from 2015-08-03), Convertible, Perpetual 43,600 1,084,334 1,094,796 Scotiabank Series 14, 4 .500%, Perpetual 17,700 452,491 451,350 Series 15, 4 .500%, Perpetual 43,100 1,067,740 1,103,360 Series 16, 5 .250%, Perpetual 14,900 384,976 385,314 Series 18, 5 .000%, Perpetual 15,700 402,162 397,053 Sun Life Financial Series 1, 4 .750%, Perpetual 30,600 686,856 722,160 Toronto-Dominion Bank 3 .900%, Perpetual* 9,700 228,823 223,100 Series 3, 3 .800%, (floating rate from 2019-07-31), Perpetual* 42,700 1,069,804 984,235 Series T, 2 .624%, (floating rate from 2018-07-31), Perpetual 9,500 238,960 229,140 Series Z, floating rate, Perpetual 18,000 458,530 433,980

22,562,527 21,670,966

Telecommunication Services (2.0%)BCE Series AD, floating rate, Perpetual* 14,800 315,301 259,148 Series AE, floating rate, Perpetual 40,100 943,361 696,537 Series AG, 4 .500%, (floating rate from 2016-05-01), Perpetual 31,700 688,875 543,655 Series AI, 4 .150%, (floating rate from 2016-08-01), Perpetual 23,700 469,272 406,692 Series AM, 4 .850%, (floating rate from 2016-03-31), Perpetual 12,000 276,602 207,000 Series S, floating rate, Perpetual 12,400 277,842 215,388

2,971,253 2,328,420




as at June 30, 2015


PREFERRED SHARES (cont.)

Utilities (3.4%)Algonquin Power & Utilities Corp . Series A, 4 .500%, (floating rate from 2018-12-31), Perpetual 4,100 101,803 83,025 Canadian Utilities Series 4, 3 .800%, Perpetual 4,900 118,633 80,605 Series AA, 4 .900%, Perpetual 22,218 547,729 532,565 Series CC, 4 .500%, Perpetual 17,900 430,144 394,695 Series Y, 4 .000%, (floating rate from 2017-06-01), 2049-12-31* 6,600 160,167 163,680 Emera Series A, 4 .400%, (floating rate from 2015-08-15), Perpetual 15,700 329,371 262,190 Series C, 4 .100%, (floating rate from 2018-08-15), Perpetual* 7,700 176,899 170,632 Fortis Series J, 4 .750%, Perpetual 16,100 394,204 379,638 Series K, 4 .000%, (floating rate from 2019-01-03), Perpetual* 22,500 534,210 483,075 Series M, 4 .100%, (floating rate from 2019-12-01), Perpetual 29,800 747,835 711,326 Northland Power Series 1, 5 .250%, (floating rate from 2015-09-30), Perpetual 20,800 407,680 344,240 Valener Series A, 4 .350%, Perpetual 8,600 223,063 208,034

4,171,738 3,813,705

TOTAL PREFERRED SHARES 37,460,171 33,605,776

COMMON SHARES (68.4%)

Energy (12.7%)ARC Resources* 42,800 947,820 915,920 Canadian Natural Resources 105,000 3,472,713 3,560,550 Enbridge* 43,700 2,303,056 2,552,517 Enerplus Corporation* 90,000 2,250,688 986,400 Suncor Energy 116,324 3,511,823 4,001,546 Veresen 15,500 321,507 302,250 Vermilion Energy 13,504 519,913 728,541 Whitecap Resources 100,600 1,059,645 1,325,908

14,387,165 14,373,632

Materials (5.9%)Agrium 20,880 1,667,991 2,763,886 AuRico Gold 163,400 1,288,997 583,338 First Quantum Minerals 108,100 1,794,689 1,765,273 Goldcorp 80,100 2,702,102 1,623,627

7,453,779 6,736,124

Industrials (6.8%)Canadian National Railway Company 54,800 1,782,528 3,948,888 Finning International 59,300 1,465,457 1,392,957 Russel Metals 37,300 1,037,693 847,829 WSP Global* 40,000 1,431,763 1,572,400

5,717,441 7,762,074



Canadian Equity



as at June 30, 2015


COMMON SHARES (cont.)

Consumer Discretionary (6.8%)Gildan Activewear* 73,800 1,091,307 3,061,962 Magna International, Class A 38,256 2,210,511 2,681,746 Quebecor, Class B* 32,800 856,026 1,024,016 Thomson Reuters Corporation* 19,900 694,631 946,444

4,852,475 7,714,168

Consumer Staples (3.0%)Empire Company, Class A 11,800 895,541 1,038,046 Loblaw Companies 37,800 1,917,511 2,384,424

2,813,052 3,422,470

Financials (27.2%)Brookfield Asset Management, Class A* 54,600 2,377,285 2,382,744 Canadian Imperial Bank of Commerce* 22,800 2,288,609 2,099,196 CI Financial 21,232 671,151 713,395 Cominar Real Estate Investment Trust, Class U* 59,177 1,078,803 1,049,208 IGM Financial* 25,600 1,380,270 1,018,368 Intact Financial Corporation 25,300 1,484,089 2,195,787 Manulife Financial Corporation 192,000 4,129,390 4,456,320 Royal Bank of Canada 81,066 4,436,910 6,191,821 Scotiabank 81,700 4,084,344 5,267,199 Toronto-Dominion Bank 102,208 3,448,341 5,421,112

25,379,192 30,795,150

Information Technology (1.3%)Open Text Corporation 28,200 1,442,333 1,430,586

Telecommunication Services (2.2%)TELUS Corporation 57,000 1,594,715 2,452,710

Utilities (2.5%)Fortis 46,500 1,402,512 1,631,220 Superior Plus Corp . 92,800 1,287,415 1,165,569

2,689,927 2,796,789

TOTAL COMMON SHARES 66,330,079 77,483,703

TOTAL EQUITIES 103,790,250 111,089,479




as at June 30, 2015



Canada Treasury Bills 2015-08-13* CAD 170,000 169,803 169,803 2015-08-27 CAD 1,155,000 1,153,510 1,153,510

TOTAL MONEY MARKET SECURITIES 1,323,313 1,323,313

BONDS (0.9%)

Government of Canada (0.3%)Government of Canada 1 .500%, 2017-02-01 CAD 29,000 29,430 29,466 1 .250%, 2017-08-01 CAD 100,000 101,369 101,581 2 .500%, 2024-06-01* CAD 55,000 58,044 59,098 2 .250%, 2025-06-01* CAD 13,000 13,538 13,669 3 .500%, 2045-12-01* CAD 48,000 59,580 60,458 PSP Capital Series 7, 3 .290%, 2024-04-04* CAD 5,000 4,997 5,383 Royal Office Finance Series A, 5 .209%, 2032-11-12 CAD 23,811 26,529 29,592

293,487 299,247

Provincial Governments and Crown Corporations (0.3%)Ontario Infrastructure 4 .700%, 2037-06-01 CAD 15,000 15,020 17,743 Ontario School Boards Financing Corporation Series 04A1, 5 .483%, 2029-11-26 CAD 29,329 31,300 35,138 Private Placement, Series 06A1, 5 .070%, 2031-04-18 CAD 38,598 38,598 44,311 Province of Alberta 3 .900%, 2033-12-01 CAD 15,000 14,934 16,909 3 .450%, 2043-12-01 CAD 5,000 4,551 5,286 Province of British Columbia 3 .200%, 2044-06-18* CAD 5,000 4,620 5,093 Province of Ontario 3 .150%, 2022-06-02* CAD 11,000 11,035 11,869 2 .850%, 2023-06-02 CAD 70,000 67,291 73,463 3 .500%, 2024-06-02* CAD 3,000 3,076 3,279 3 .450%, 2045-06-02 CAD 6,000 5,686 6,301 Province of Quebec 4 .500%, 2019-12-01* CAD 35,000 38,703 39,829 3 .500%, 2022-12-01* CAD 39,000 40,481 42,961 2 .750%, 2025-09-01* CAD 4,000 4,187 4,090 4 .250%, 2043-12-01 CAD 9,000 9,210 10,667 TCHC Issuer Trust Series B, 5 .395%, 2040-02-22 CAD 20,000 20,000 26,022

308,692 342,961



Canadian Equity



as at June 30, 2015


BONDS (cont.)

Corporations (0.3%)Bank of Montreal 2 .390%, 2017-07-12 CAD 8,000 8,149 8,187 2 .240%, 2017-12-11 CAD 5,000 4,995 5,115 3 .979%, (floating rate from 2016-07-08), 2021-07-08* CAD 15,000 15,617 15,382 3 .120%, (floating rate from 2019-09-19), 2024-09-19* CAD 7,000 7,071 7,243 Caisse Centrale Desjardins 2 .795%, 2018-11-19 CAD 10,000 10,068 10,437 2 .443%, 2019-07-17 CAD 10,000 10,000 10,352 Canadian Imperial Bank of Commerce 2 .350%, 2017-10-18* CAD 26,000 26,541 26,640 2 .350%, 2019-06-24 CAD 3,000 2,997 3,104 3 .000%, (floating rate from 2019-10-28), 2024-10-28* CAD 7,000 7,067 7,214 Canadian Utilities 4 .543%, 2041-10-24 CAD 2,000 2,119 2,216 Capital City Link Series A, 4 .386%, 2046-03-31 CAD 7,000 7,000 7,367 Cominar Real Estate Investment Trust Series 9, 4 .164%, 2022-06-01* CAD 5,000 5,000 5,039 CSS (FSCC) Partnership 6 .915%, 2042-07-31 CAD 4,913 6,306 6,560 Health Montréal Collective, Private Placement Series 144A, 6 .721%, 2049-09-30 CAD 13,000 15,267 17,099 Hospital Infrastructure Series A, 5 .439%, 2045-01-31 CAD 10,000 10,000 11,903 Integrated Team Solutions SJHC 5 .946%, 2042-11-30 CAD 5,000 5,035 6,187 North West Redwater Partnership Series A, 3 .200%, 2024-07-22 CAD 5,000 4,992 5,173 Northland Power Series A, 4 .958%, 2032-12-31 CAD 4,787 4,787 5,446 Plenary Health Care Partnerships Humber 4 .895%, 2039-05-31 CAD 10,000 10,000 11,141 Reliance Series 1, 4 .574%, 2017-03-15 CAD 7,000 7,000 7,232 Series 2, 5 .187%, 2019-03-15 CAD 4,000 4,000 4,296 Royal Bank of Canada 2 .260%, 2018-03-12* CAD 10,000 10,256 10,235 2 .820%, 2018-07-12 CAD 10,000 9,998 10,419 3 .040%, (floating rate from 2019-07-17), 2024-07-17 CAD 5,000 4,999 5,172 2 .990%, (floating rate from 2019-12-06), 2024-12-06 CAD 21,000 21,068 21,910 2 .480%, (floating rate from 2020-06-04), 2025-06-04 CAD 10,000 9,998 9,981 Scotiabank 2 .370%, 2018-01-11* CAD 26,000 25,990 26,671 2 .242%, 2018-03-22 CAD 10,000 10,000 10,232 3 .270%, 2021-01-11 CAD 8,000 8,000 8,529 SNC-Lavalin Innisfree McGill Finance 6 .632%, 2044-06-30 CAD 3,976 4,558 5,196





as at June 30, 2015


Corporations (cont.)Teranet Income Fund 6 .100%, 2041-06-17 CAD 12,000 12,346 13,689 Toronto-Dominion Bank 2 .447%, 2019-04-02 CAD 5,000 5,000 5,181 3 .226%, 2024-07-24* CAD 5,000 5,000 5,218 2 .692%, (floating rate from 2020-06-24), 2025-06-24 CAD 5,000 5,000 5,036 4 .779%, (floating rate from 2016-12-14), 2105-12-14 CAD 20,000 21,448 20,915 5 .763%, (floating rate from 2017-12-18), 2106-12-18 CAD 25,000 27,235 27,497

354,907 369,214

TOTAL BONDS 957,086 1,011,422

ASSET-BACKED SECURITIES (0.0%)CHIP Mortgage Trust 3 .663%, 2038-09-25 CAD 6,000 6,000 6,343

MORTGAGE-BACKED SECURITIES (0.0%)Real Estate Asset Liquidity Trust 4 .449%, 2016-08-12 CAD 10,000 1,680 1,865




NET ASSETS (100%) 113,354,632


Canadian Equity



as at June 30, 2015


Investment ObjectiveTo provide the investor with a balance of capital growth and dividend income through investments primarily in large, financially stable corporations .

Investment StrategyTo emphasize investments in high-yield preferred shares and a core, limited-turnover portfolio of common shares . The investment approach benefits investors due to the preferential tax treatment on dividends received and the deferral of realized gains generated on common shares .





Financial Assets at FVTPLEquities 111,089,479 — — 111,089,479 Bonds 562,759 448,663 — 1,011,422 Mortgage-Backed Securities — 1,865 — 1,865 Asset-Backed Securities — 6,343 — 6,343 Money Market Securities 1,323,313 — — 1,323,313 TOTAL 112,975,551 456,871 — 113,432,422


Financial Assets at FVTPLEquities 126,723,095 — — 126,723,095 Bonds 590,465 405,580 — 996,045 Mortgage-Backed Securities — 4,343 — 4,343 Asset-Backed Securities — 6,230 — 6,230 TOTAL 127,313,560 416,153 — 127,729,713







as at June 30, 2015

Interest Rate RiskThe following table summarizes the Fund’s exposure to interest rate risk . It includes the Fund’s financial assets and liabilities at fair value, categorized by the earlier of contractual re-pricing or maturity dates . The table also illustrates the impact on the Net Assets Attributable to Contract Owners, had prevailing interest rates changed by 0 .25%, assuming a parallel shift in the yield curve, with all other variables held constant .



Impact on Net Assets


$ $ $ $ $ $June 30, 2015 1,458,083 431,190 233,681 354,757 2,477,711 18,429

December 31, 2014 (175,499) 421,823 216,370 334,379 797,073 17,877


Concentration Risk

The following table summarizes the concentration risk, as in percentages of the Net Assets Attributable to Contract Owners:

June 30, 2015MARKET SEGMENT %Equities

Financials 46 .3 Energy 17 .8 Industrials 6 .8 Consumer Discretionary 6 .8 Materials 5 .9 Utilities 5 .9 Telecommunication Services 4 .2 Consumer Staples 3 .0 Information Technology 1 .3

Money Market Securities 1 .2 Bonds 0 .9Other Net Assets (0 .1)TOTAL 100

December 31, 2014MARKET SEGMENT %Equities

Financials 46 .1Energy 19 .2Industrials 7 .1Consumer Discretionary 5 .7Materials 5 .5Utilities 5 .4Telecommunication Services 4 .5Consumer Staples 3 .1Information Technology 1 .9

Bonds 0 .8Other Net Assets 0 .7TOTAL 100


Canadian Equity



as at June 30, 2015

Price RiskThe Fund may trade in financial instruments and take positions in traded and over-the-counter instruments .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in benchmarks, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmarks, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .



June 30, 2015 December 31, 2014Benchmarks % $ $FTSE TMX Canada Universe (5%) 1 .00 61,889 70,624S&P/TSX Dividend (60%) 3 .00 2,228,019 2,542,474BMO 50 Preferred Share (35%) 3 .00 1,299,678 1,483,110


Credit RiskThe Fund’s credit risk is mainly concentrated in fixed-income securities . Their fair values include consideration of the issuers’ creditworthiness and accordingly, represent the Fund’s maximum exposure to credit risk .The investment grade for Canadian fixed-income securities and money market securities is rated by the Dominion Bond Rating Service (“DBRS”), Standard & Poor’s or Moody’s . The investment grade for foreign fixed-income securities and money market securities is rated by Standard & Poor’s, Moody’s or Fitch . In cases where the credit rating agencies do not agree on a credit rating for fixed-income securities and money market securities, they will be classified following these rules:• If two credit ratings are available, but the ratings are different, the lowest rating is used;• If three credit ratings are available, the most common credit rating is used;• If all three credit rating agencies have different ratings, the middle credit rating is used .The credit rating is then converted to DBRS format . Generally, the greater the credit rating of a security, the lower the probability of it defaulting on its obligations .

Portfolio’s Fixed-Income Securities by Credit Rating Category


% %AAA 33 36 AA 35 34 A 26 24 BBB 6 6 TOTAL 100 100


$June 30, 2015 460,000 December 31, 2014 258,446


$June 30, 2015 300,810 December 31, 2014 169,327



as at June 30, 2015


$June 30, 2015 401 December 31, 2014 9,013


Liquidity RiskFor further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .

DERECOGNITION OF FINANCIAL ASSETSSecurities lending and repurchase transactionsAs part of transactions involving securities lending or repurchase transactions, the Fund transfers financial assets under terms and conditions providing for their future repurchase . These financial assets remain recognized in the “Investments at fair value through profit or loss pledged as collateral” of the Statement of Financial Position as the Fund retains substantially all the risks and rewards related to these assets .

June 30, 2015 December 31, 2014$ $





$ $Financial Assets 460,000 258,446 Related Liabilities 459,007 260,981



Canadian Equity


DFS GIF – CANADIAN DIVIDEND – NORTHWEST

Canadian Equity



As atJune 30

2015December 31

2014$ $




19,861,539 18,153,870


84,143 55,618




2015 2014$ $



206,933 1,333,217


307,209 222,103

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS (100,276) 1,111,114













DFS GIF – CANADIAN DIVIDEND – NORTHWEST (cont.)

Canadian Equity



$ $


from operations attributable to contract owners (100,276) 1,111,114

PremiumsSeries 5 3,807,969 4,309,489 Series 6* 897,640 243,293 Series 7* — 216,001

4,705,609 4,768,783

WithdrawalsSeries 5 (2,790,291) (1,510,327)Series 6* (135,898) (310)Series 7* — —

(2,926,189) (1,510,637)



2015 2014$ $



Adjustments for:Net realized gain (loss) (136,015) (61,468)Net unrealized gain (loss) 157,228 (1,088,248)

Proceeds from sale/ maturity of investments 1,071,963 411,912

Investments purchased (2,778,182) (3,660,614)Receivable for securities sold (1,133) —Accrued expenses 5,397 11,411 Payable for securities purchased 13,152 186,457











Fair Value

$ $

INVESTMENT FUND (100.0%)NEI Northwest Canadian Dividend Fund, Series I 1,160,721 17,810,888 19,772,076



NET ASSETS (100%) 19,777,396




Toronto-Dominion Bank 8 .7%Royal Bank of Canada 7 .3%Scotiabank 7 .2%Rogers Communications 5 .9%Canadian Imperial Bank of Commerce 5 .3%Cenovus Energy 4 .2%Verizon Communications 3 .9%Kellogg Company 3 .9%Power Financial Corporation 3 .8%Eli Lilly and Company 3 .5%Baxter International 3 .4%Canadian Natural Resources 3 .4%Magna International 3 .4%Atea 3 .4%Symantec Corporation 3 .4%Manulife Financial Corporation 3 .1%Merck & Company 2 .9%Baxalta 2 .9%Potash Corporation of Saskatchewan 2 .8%Thomson Reuters Corporation 2 .4%Molson Coors Canada 2 .4%Intact Financial Corporation 2 .0%Parker Hannifin Corporation 2 .0%SNC-Lavalin Group 1 .7%Finning International 1 .7%



as at June 30, 2015


Investment ObjectiveThe objective of this Fund is to achieve a balance between high dividend income and capital growth by investing mainly in a diversified portfolio of blue chip Canadian common stocks and, to a lesser extent, in high-yield preferred stocks and interest bearing securities .

Investment StrategyThe Fund invests in primarily blue-chip common stocks but may also invest in preferred stocks, bonds, purchase warrants and rights, royalty trusts and income trusts with preference given to capital growth while still providing a high regular level of income . Quality liquid corporations whose management has built shareholder value over time not to mention a proven ability to generate free cash flow, supporting growth and profitability as well as providing management with the ability to make strategic acquisitions, buy back stock and pay increasing dividends are preferred investments for this Fund . While equity securities including preferred stocks providing stable income are favoured, any small, mid and large capitalization Canadian corporations in a variety of industries meeting these criteria will be considered .












DFS GIF – CANADIAN DIVIDEND – NORTHWEST (cont.)

Canadian Equity



as at June 30, 2015







Benchmark % $ $S&P/TSX 3 .00 593,322 542,948





® Fidelity True North is a registered trademark of FMR Corp .The accompanying notes are an integral part of these financial statements.


As atJune 30

2015December 31

2014$ $




29,445,882 26,660,731


139,683 137,465




2015 2014$ $


Net realized gain (loss) on investments 375,813 287,595 Net unrealized gain (loss) on investments 338,164 1,762,110

713,977 2,049,204


451,020 360,487












from Operations (6 316) 48 - per unit (0,11) 0,24

Average number of units 55 783 200


DFS GIF – CANADIAN EQUITY – FIDELITY TRUE NORTH®

Canadian Equity


* Beginning of operations in February 2014.® Fidelity True North is a registered trademark of FMR Corp .



$ $




6,072,160 3,207,609

WithdrawalsSeries 3 (180,488) (219,840)Series 5 (2,681,542) (1,885,468)Series 6* (686,805) (28,844)Series 7* (3,349) —

(3,552,184) (2,134,152)



2015 2014$ $



Adjustments for:Net realized gain (loss) (375,813) (287,595)Net unrealized gain (loss) (338,164) (1,762,110)


Investments purchased (3,444,432) (1,928,829)Receivable for securities sold — (21,369)Accrued expenses 9,064 8,389 Payable for securities purchased (2,597) (17,122)




Increase (decrease) in cash/bank overdraft 27,075 (34)








Fair Value

$ $

INVESTMENT FUND (99.6%)Fidelity True North ® Fund, Series O 623,668 22,613,765 29,203,159



NET ASSETS (100%) 29,306,199




Toronto-Dominion Bank 7 .2%Loblaw Companies 4 .6%Valeant Pharmaceuticals International 4 .1%Manulife Financial Corporation 4 .0%Canadian National Railway Company 3 .1%Gildan Activewear 3 .0%Alimentation Couche-Tard 2 .9%Suncor Energy 2 .8%Enbridge 2 .7%Power Corporation of Canada 2 .7%Rogers Communications 2 .5%CGI Group 2 .5%Metro 2 .2%Royal Bank of Canada 2 .2%Catamaran Corporation 1 .8%Fairfax Financial Holdings 1 .6%Magna International 1 .6%SNC-Lavalin Group 1 .4%Empire Company 1 .4%Intact Financial Corporation 1 .3%Restaurant Brands International 1 .3%Open Text Corporation 1 .3%Bombardier 1 .3%Constellation Software 1 .3%Canadian Natural Resources 1 .2%

DFS GIF – CANADIAN EQUITY – FIDELITY TRUE NORTH® (cont.)

Canadian Equity



as at June 30, 2015


Investment ObjectiveTo achieve strong long-term capital growth by investing primarily in equity securities of Canadian companies that have a history of strong capital growth over the long-term . The fundamental investment objective of this Fund is to achieve long-term capital appreciation while still emphasizing the preservation of capital by investing primarily in Canadian equity securities .

Investment StrategyTo invest primarily in small, medium and large Canadian companies . The Fund may also invest in a limited portion of foreign securities . The Fund may also use, to a lesser degree, derivatives such as options, futures, forward contracts and swaps to protect against losses caused by changes in stock prices or exchange rates .















as at June 30, 2015






Benchmark % $ $S&P/TSX Capped 3 .00 504,358 490,871




DFS GIF – CANADIAN EQUITY – FIDELITY TRUE NORTH® (cont.)

Canadian Equity


DFS GIF – CANADIAN EQUITY – BISSETT

Canadian Equity



As atJune 30

2015December 31

2014$ $




35,160,182 39,326,317

LIABILITIESCurrent LiabilitiesAccrued expenses 97,932 105,574 Withdrawals payable 31,454 16,882 Payable for securities purchased — 4,460

129,386 126,916




2015 2014$ $

INCOMEDividends 162,428 —Changes in fair value:

Net realized gain (loss) on investments 1,403,052 564,321 Net unrealized gain (loss) on investments (1,921,087) 4,004,762

(355,607) 4,569,083


619,419 626,404

















DFS GIF – CANADIAN EQUITY – BISSETT (cont.)

Canadian Equity



$ $



PremiumsSeries 3 479,443 756,174 Series 5 804,108 2,875,048 Series 6* 697,892 716,731 Series 7* 650 1,001

1,982,093 4,348,954

WithdrawalsSeries 3 (2,282,543) (2,243,614)Series 5 (2,375,483) (1,010,746)Series 6* (517,643) (9,231)Series 7* (3) —

(5,175,672) (3,263,591)



2015 2014$ $



Adjustments for:Net realized gain (loss) (1,403,052) (564,321)Net unrealized gain (loss) 1,921,087 (4,004,762)


Investments purchased (816,013) (2,122,668)Receivable for securities sold (88,621) (133,618)Accrued expenses (7,642) 14,819 Payable for securities purchased (4,460) (11,583)











Fair Value

$ $

INVESTMENT FUND (100.0%)Franklin Bissett Canadian Equity Fund, Series O 265,592 24,195,987 35,039,558



NET ASSETS (100%) 35,030,796




Brookfield Asset Management 5 .8%Canadian National Railway Company 4 .8%Toronto-Dominion Bank 4 .7%Canadian Imperial Bank of Commerce 4 .5%Royal Bank of Canada 4 .4%Scotiabank 4 .0%Bank of Montreal 3 .9%Enbridge 3 .9%Restaurant Brands International 3 .6%MacDonald, Dettwiler and Associates Ltd 2 .9%Canadian Pacific Railway 2 .9%Onex Corporation 2 .7%Power Corporation of Canada 2 .6%Thomson Reuters Corporation 2 .6%Power Financial Corporation 2 .5%Alimentation Couche-Tard 2 .5%Metro 2 .3%Saputo Group 2 .1%Home Capital Group Inc . 2 .0%Agrium 1 .9%TransCanada Corporation 1 .9%Keyera Corporation 1 .7%Canadian Natural Resources 1 .5%Atco Ltd 1 .5%Toromont Industries Ltd 1 .4%



as at June 30, 2015


Investment ObjectiveThe fundamental investment objective of this Fund is to achieve long-term capital appreciation while continuing to emphasize the preservation of capital by investing primarily in Canadian equity securities .

Investment StrategyTo invest primarily in mid to large cap Canadian equity securities of growth-oriented companies . The Fund may also have a foreign equity component .









Transfers between Levels 1 and 2Total values of index-based investments, mortgage-backed securities, asset-backed securities, investment funds and limited partnerships in the table “Investment Fair Value Measurement within the Levels” also represent the fair value of investments in structured entities .




DFS GIF – CANADIAN EQUITY – BISSETT (cont.)

Canadian Equity



as at June 30, 2015






Benchmark % $ $S&P/TSX 3 .00 885,641 870,636





DFS GIF – CANADIAN EQUITY – FIERA

Canadian Equity


As atJune 30

2015December 31

2014$ $




or loss (FVTPL) pledged as collateral 7,466,734 8,689,071 Premiums receivable 5,698 9,845 Cash guarantee received for repurchase

transactions 1,875,741 —Interest, dividends and other receivables 53,542 46,007

41,797,156 41,889,829

LIABILITIESCurrent LiabilitiesAccrued expenses 110,090 110,823 Withdrawals payable 89,600 47,237 Commitments related to repurchase

transactions 1,875,741 —2,075,431 158,060


NET ASSETS PER UNITSeries 1 11.04 10 .71 Series 3 12.16 11 .76 Series 5 12.80 12 .34 Series 6 5.54 5 .34 Series 7 5.58 5 .37 Series IGP 10.40 10 .01


2015 2014$ $

INCOMEInterest for attribution purposes 9,027 8,552 Dividends 461,708 393,672 Revenue from securities lending and

repurchase transactions 3,464 2,620 Changes in fair value:

Net realized gain (loss) on investments 1,972,362 1,850,978 Net unrealized gain (loss) on investments (294,128) 2,979,374

2,152,433 5,235,196 EXPENSESManagement fees and guarantee charge 531,226 501,760 Operating expenses 144,055 144,514

675,281 646,274 Commissions and other portfolio

transaction costs 37,895 49,991 713,176 696,265

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS 1,439,257 4,538,931 DATA PER SERIESSERIES1Increase (Decrease) in Net Assets


Average number of units 1,465,251 1,690,372 SERIES 3Increase (Decrease) in Net Assets


Average number of units 1,219,426 1,394,589 SERIES 5Increase (Decrease) in Net Assets


Average number of units 435,696 475,548 SERIES 6*Increase (Decrease) in Net Assets


Average number of units 72,709 12,644 SERIES 7*Increase (Decrease) in Net Assets


Average number of units 8,557 200 SERIES IGP**Increase (Decrease) in Net Assets

from Operations 197,798 —- per unit 0.47 —

Average number of units 424,091 —

The accompanying notes are an integral part of these financial statements.* Beginning of operations in February 2014.

** Beginning of operations in November 2014.





$ $



PremiumsSeries 1 215,917 112,045 Series 3 298,793 284,428 Series 5 273,473 250,792 Series 6* 234,475 122,137 Series 7* — 1,001 Series IGP** 9,857 —

1,032,515 770,403

WithdrawalsSeries 1 (1,353,554) (1,506,702)Series 3 (1,481,816) (1,416,665)Series 5 (553,863) (544,391)Series 6* (35,216) (451)Series 7* (2,028) —Series IGP** (1,055,339) —

(4,481,816) (3,468,209)



2015 2014$ $



Adjustments for:Net realized gain (loss) (1,972,362) (1,850,978)Net unrealized gain (loss) 294,128 (2,979,374)


Investments purchased (29,646,531) (26,661,900)Cash guarantee received for

repurchase transactions (1,875,741) —Interest, dividends and other

receivables (7,535) (28,009)Accrued expenses (733) 4,842 Commitments related to repurchase

transactions 1,875,741 —Payable for securities purchased — 613,140


CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 1,036,662 768,293 Amounts paid on withdrawals (4,439,453) (3,407,827)






SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest received 7,202 4,354 Dividends received, net of

withholding taxes 454,055 365,909 Interest paid 2 —




as at June 30, 2015


CANADIAN EQUITIES (98.5%)

Energy (18.1%)Canadian Natural Resources 36,295 1,343,897 1,230,763 Cenovus Energy 40,752 893,363 813,817 Enbridge 19,900 1,114,935 1,162,359 Freehold Royalties 41,100 739,800 663,354 Peyto Exploration & Development Corporation 15,189 459,345 463,720 PrairieSky Royalty 13,989 424,954 440,793 Suncor Energy 33,444 1,211,139 1,150,474 Tourmaline Oil Corp . 13,178 556,180 494,439 TransCanada Corporation 15,100 870,542 766,476

7,614,155 7,186,195

Materials (12.9%)Agnico Eagle Mines 18,997 646,199 673,634 Agrium 3,300 420,911 436,821 CCL Industries, Class B 4,814 369,896 737,505 First Quantum Minerals 42,475 661,562 693,617 Franco-Nevada Corporation* 8,277 453,278 493,061 Potash Corporation of Saskatchewan* 7,200 273,334 278,496 Tahoe Resources 81,396 1,367,453 1,232,335 West Fraser Timber Co . 8,116 419,455 557,001

4,612,088 5,102,470

Industrials (8.1%)ATS Automation Tooling Systems* 66,650 842,855 1,019,078 Canadian National Railway Company 19,122 958,800 1,377,931 Canadian Pacific Railway* 4,133 608,649 826,683

2,410,304 3,223,692

Consumer Discretionary (5.5%)Dollarama 12,133 487,646 918,468 Gildan Activewear* 30,386 748,392 1,260,715

1,236,038 2,179,183

Consumer Staples (7.3%)Alimentation Couche-Tard, Class B 15,932 601,180 851,247 Loblaw Companies 32,481 1,605,971 2,048,901

2,207,151 2,900,148

Health Care (4.7%)Valeant Pharmaceuticals International 6,782 1,674,990 1,879,089


DFS GIF – CANADIAN EQUITY – FIERA (cont.)

Canadian Equity



as at June 30, 2015


CANADIAN EQUITIES (cont.)

Financials (37.8%)CI Financial 33,467 1,056,129 1,124,491 Element Financial Corporation 32,109 410,748 634,153 Element Financial Corporation, Subscription Receipts 68,335 1,161,695 1,338,683 Intact Financial Corporation 7,299 541,412 633,480 Manulife Financial Corporation 85,254 1,856,338 1,978,745 Power Financial Corporation* 19,384 624,313 695,304 RioCan Real Estate Investment Trust* 18,100 540,351 484,537 Royal Bank of Canada 41,421 2,791,422 3,163,736 Scotiabank 37,597 2,328,454 2,423,879 Toronto-Dominion Bank 47,589 2,433,975 2,524,121

13,744,837 15,001,129

Information Technology (2.7%)CGI Group, Class A* 22,309 696,668 1,089,795

Telecommunication Services (1.4%)TELUS Corporation 12,688 525,732 545,965

TOTAL CANADIAN EQUITIES 34,721,963 39,107,666

Par Value


Canada Treasury Bills* 2015-09-10 CAD 720,000 719,075 719,075




NET ASSETS (100%) 39,721,725




as at June 30, 2015


Investment ObjectiveTo provide investors with long-term capital growth by investing primarily in Canadian equity securities .

Investment StrategyTo invest primarily in the common shares of medium and large cap Canadian securities of growth-oriented companies .





Financial Assets at FVTPLEquities 39,107,666 — — 39,107,666 Money Market Securities 719,075 — — 719,075 TOTAL 39,826,741 — — 39,826,741


Financial Assets at FVTPLEquities 41,115,942 — — 41,115,942 Money Market Securities 664,089 — — 664,089 TOTAL 41,780,031 — — 41,780,031




Interest Rate RiskAs at June 30, 2015 and December 31, 2014, the majority of the Fund’s financial assets and liabilities are non-interest bearing . As a result, the Fund is not subject to significant amounts of risk arising from fluctuations in the prevailing levels of market interest rates .


Canadian Equity



as at June 30, 2015

Concentration RiskThe following table summarizes the concentration risk, as in percentages of the Net Assets Attributable to Contract Owners:

June 30, 2015MARKET SEGMENT %Equities

Financials 37 .8 Energy 18 .1 Materials 12 .9 Industrials 8 .1 Consumer Staples 7 .3 Consumer Discretionary 5 .5 Health Care 4 .7 Information Technology 2 .7 Telecommunication Services 1 .4

Money Market Securities 1 .8 Other Net Assets (0 .3)TOTAL 100

Price RiskThe Fund may trade in financial instruments and take positions in traded and over-the-counter instruments .The Manager’s estimate of the impact on Net Assets Attributable to Contract Owners as a result of a reasonably possible change in the benchmark, using a historical beta coefficient (a measure of the sensitivity of a security in comparison to the market) between the Fund’s return as compared to the return of the Fund’s benchmark, with all other variables held constant, is included in the following table . A 36-month regression analysis has been utilized to estimate the historical beta coefficient . The regression analysis uses data based on the monthly returns of the Fund .



Benchmark % $ $S&P/TSX Capped 3 .00 1,082,517 1,258,028


December 31, 2014MARKET SEGMENT %Equities

Financials 34 .0Energy 18 .8Materials 10 .3Industrials 9 .5Consumer Discretionary 8 .6Consumer Staples 7 .4Information Technology 4 .9Telecommunication Services 3 .6Health Care 1 .4

Money Market Securities 1 .6Other Net Assets (0 .1)TOTAL 100



as at June 30, 2015

Credit RiskAs at June 30, 2015 and December 31, 2014, the Fund had no significant investments in either fixed-income securities, money market securities and derivative financial instruments . As a result, the Fund is not significantly exposed to credit risk .


$June 30, 2015 1,837,792 December 31, 2014 —


$June 30, 2015 1,229,048 December 31, 2014 —

Liquidity Risk

For further information on maturity of financial liabilities and liquidity risk management of the Fund, please refer to Note 7 “Financial Instruments Disclosures” .



June 30, 2015 December 31, 2014$ $





$ $Financial Assets 1,837,792 — Related Liabilities 1,875,339 —



Canadian Equity


DFS GIF – CANADIAN EQUITY – JARISLOWSKY FRASER

Canadian Equity



As atJune 30

2015December 31

2014$ $




170,073,852 188,741,757

LIABILITIESCurrent LiabilitiesBank overdraft 328,916 150,757 Accrued expenses 423,442 450,052 Withdrawals payable 380,421 63,885

1,132,779 664,694




2015 2014$ $

INCOMEInterest for attribution purposes 21,965 —Dividends 2,337,529 2,434,436 Changes in fair value:


(2,437,028) 16,948,406


2,664,759 2,745,689












$ $




1,672,477 2,392,807

WithdrawalsSeries 3 (783,070) (641,062)Series 5 (14,923,610) (9,579,528)

(15,706,680) (10,220,590)



2015 2014$ $





Investments purchased (18,760,682) (1,885,060)Receivable for securities sold (137,448) 30,336 Accrued expenses (26,610) 22,083







SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESInterest paid 562 —

DFS GIF – CANADIAN EQUITY – JARISLOWSKY FRASER (cont.)

Canadian Equity




Fair Value

$ $

INVESTMENT FUND (100.5%)Jarislowsky Fraser Canadian Equity Fund 5,226,664 159,916,817 169,835,740



NET ASSETS (100%) 168,941,073




Toronto-Dominion Bank 7 .9%Jarislowsky Fraser Special Equity Fund 7 .6%Royal Bank of Canada 6 .7%Scotiabank 6 .3%Suncor Energy 4 .3%Canadian National Railway Company 4 .2%Enbridge 4 .1%Manulife Financial Corporation 4 .1%Metro 3 .8%Canadian Natural Resources 3 .7%Loblaw Companies 3 .4%Thomson Reuters Corporation 3 .4%Cenovus Energy 2 .8%Canadian Tire Corporation 2 .8%SNC-Lavalin Group 2 .6%Open Text Corporation 2 .4%Intact Financial Corporation 2 .4%Great-West Lifeco 2 .3%Cameco Corporation 1 .8%Industrial Alliance, Insurance and Financial Services 1 .7%Gildan Activewear 1 .7%CGI Group 1 .6%Vermilion Energy 1 .6%Stantec 1 .6%Pembina Pipeline Corporation 1 .6%



as at June 30, 2015


Investment ObjectiveTo achieve long-term capital appreciation while continuing to emphasize the preservation of capital by investing primarily in large cap Canadian equity securities .

Investment StrategyTo invest primarily in Canadian equity securities in areas of the Canadian economy where superior rates of growth are expected .













DFS GIF – CANADIAN EQUITY – JARISLOWSKY FRASER (cont.)

Canadian Equity



as at June 30, 2015






Benchmark % $ $S&P/TSX 3 .00 3,532,715 3,776,676





DFS GIF – SPECIALTY EQUITY – NORTHWEST

Canadian Equity



As atJune 30

2015December 31

2014$ $




18,314,309 20,139,608


97,097 92,249




2015 2014$ $


Net realized gain (loss) on investments 147,623 365,108 Net unrealized gain (loss) on investments 301,641 2,430,103

449,264 2,795,211


322,513 387,592



















$ $



PremiumsSeries 3 70,891 100,343 Series 5 1,389,004 1,254,203 Series 6* 443,929 130,698 Series 7* — 1,001

1,903,824 1,486,245

WithdrawalsSeries 3 (578,335) (493,340)Series 5 (3,120,939) (1,908,702)Series 6* (161,448) (149)Series 7* — —

(3,860,722) (2,402,191)



2015 2014$ $



Adjustments for:Net realized gain (loss) (147,623) (365,108)Net unrealized gain (loss) (301,641) (2,430,103)


Investments purchased (319,772) (661,972)Receivable for securities sold (482) (37,775)Accrued expenses (3,226) 4,470 Payable for securities purchased 1,977 (32,638)











Fair Value

$ $

INVESTMENT FUND (100.2%)NEI Northwest Specialty Equity Fund, Series I 1,018,991 17,032,160 18,249,828



NET ASSETS (100%) 18,217,212




Home Capital Group Inc . 6 .3%Western Forest Products 3 .9%Gluskin Sheff & Associates 3 .6%Descartes Systems Group 3 .6%Alaris Royalty Corporation 3 .5%Parex Resources 3 .2%Performance Sports Group 3 .2%Industrial Alliance, Insurance and Financial Services 3 .0%Premium Brands Holdings Corporation 3 .0%Black Diamond Inc . 2 .9%Fortuna Silver Mines 2 .8%High Liner Foods 2 .8%Osisko Gold Royalties 2 .7%Callidus Capital Corporation 2 .6%Winpak Ltd 2 .6%Primero Mining Corporation 2 .4%Lassonde Industries Inc . 2 .4%Stella-Jones 2 .3%Metro 2 .3%Cogeco Cable 2 .3%Boyd Group Income Fund 2 .2%Advantage Oil & Gas 2 .2%Major Drilling Group International 2 .1%TransGlobe Energy Corporation 2 .0%Canadian Energy Services & Technology Corporation 1 .9%

DFS GIF – SPECIALTY EQUITY – NORTHWEST (cont.)

Canadian Equity



as at June 30, 2015


Investment ObjectiveTo achieve capital appreciation over the longer term by investing primarily in the equity of smaller, fast growing Canadian companies with small market capitalizations under a billion dollars .

Investment StrategyTo invest primarily in common shares and other equity securities issued by companies that are financially strong and have distinct competitive advantages at relative valuations .















as at June 30, 2015






Benchmarks % $ $S&P/TSX Small Cap (60%) 3 .00 281,782 299,241S&P/TSX Completion (40%) 3 .00 187,855 199,494




DFS GIF – SPECIALTY EQUITY – NORTHWEST (cont.)

Canadian Equity


DFS GIF – SMALL CAP – BISSETT

Canadian Equity



As atJune 30

2015December 31

2014$ $




21,762,769 25,350,305

LIABILITIESCurrent LiabilitiesBank overdraft 11,989 3,863 Accrued expenses 62,171 70,384 Withdrawals payable 45,355 32,042 Payable for securities purchased — 13,860

119,515 120,149




2015 2014$ $



(278,198) 2,542,181


387,552 476,031



















$ $



PremiumsSeries 3 114,665 454,663 Series 5 689,574 3,173,331 Series 6* 637,436 459,295 Series 7* 650 101,001

1,442,325 4,188,290

WithdrawalsSeries 3 (1,394,414) (1,417,630)Series 5 (2,488,821) (1,155,838)Series 6* (391,880) (8,168)Series 7* (88,362) —

(4,363,477) (2,581,636)



2015 2014$ $



Adjustments for:Net realized gain (loss) (442,984) (329,592)Net unrealized gain (loss) 721,182 (2,212,645)


Investments purchased (442,631) (2,345,340)Receivable for securities sold (19,687) (6,413)Accrued expenses (8,213) 12,210 Payable for securities purchased (13,860) (2,202)









DFS GIF – SMALL CAP – BISSETT (cont.)

Canadian Equity



as at June 30, 2015


Fair Value

$ $

INVESTMENT FUND (100.3%)Franklin Bissett Small Cap Fund, Series O 264,217 19,265,178 21,700,178



NET ASSETS (100%) 21,643,254




Equitable Group 6 .0%Canam Group 5 .5%Leon’s Furniture Ltd 4 .7%Richelieu Hardware Ltd 4 .6%RONA 4 .1%Transat A .T . Inc . 3 .9%Advantage Oil & Gas 3 .7%Transcontinental 3 .6%Indigo Books & Music Inc . 3 .6%Reitmans (Canada) Ltd 3 .0%Xtreme Drilling and Coil Services Corporation 2 .8%Winpak Ltd 2 .8%Horizon North Logistics Inc . 2 .8%Trican Well Service Ltd 2 .7%Westaim Corporation, Warrants, February 20, 2049 2 .7%ZCL Composites Inc . 2 .3%NuVista Energy Ltd 2 .3%Trinidad Drilling 2 .0%Major Drilling Group International 2 .0%CanElson Drilling 1 .9%Delphi Energy Corporation 1 .7%AGF Management Ltd 1 .6%Granite Real Estate Inc . 1 .5%Home Capital Group Inc . 1 .5%Storm Resources Ltd 1 .5%



as at June 30, 2015


Investment ObjectiveTo provide investors with long-term capital appreciation . The Fund invests mainly in shares of Canadian companies with small to medium market capitalizations which are expected to provide above-average returns .

Investment StrategyTo be fully diversified at all times to compensate for the volatility inherent in investing in small capitalization equities .













DFS GIF – SMALL CAP – BISSETT (cont.)

Canadian Equity



as at June 30, 2015






Benchmark % $ $S&P/TSX Small Cap 3 .00 424,892 459,043







As atJune 30

2015December 31

2014$ $




16,775,434 13,344,537


107,849 50,222




2015 2014$ $

INCOMEInterest for attribution purposes 79 15 Dividends 138,307 93,940 Changes in fair value:


1,330,779 532,577


246,252 175,036 Withholding taxes 20,095 11,723

266,347 186,759

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS 1,064,432 345,818














DFS GIF – AMERICAN EQUITY – MFS

Foreign Equity





$ $


from operations attributable to contract owners 1,064,432 345,818


3,958,980 2,250,295

WithdrawalsSeries 3 (682,111) (410,516)Series 5 (868,518) (497,298)Series 6* (99,513) (1,749)Series 7* — —

(1,650,142) (909,563)



2015 2014$ $

CASH FLOWS FROM/USED IN OPERATING ACTIVITIESIncrease (decrease) in Net Assets



Proceeds from sale/ maturity of investments 1,816,874 860,921



CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 3,916,780 2,256,510 Amounts paid on withdrawals (1,633,686) (892,978)



Cash (bank overdraft), beginning of period 5,768 770

CASH (BANK OVERDRAFT), END OF PERIOD 30,619 (481)





Fair Value

$ $

INVESTMENT FUND (100.1%)MFS U .S . Equity Core Fund 1,013,128 12,406,983 16,684,659



NET ASSETS (100%) 16,667,585




JPMorgan Chase & Company 3 .3%Visa 2 .7%Danaher Corporation 2 .6%Walt Disney Company 2 .1%Wells Fargo & Company 2 .1%Goldman Sachs Group 2 .0%Johnson & Johnson 2 .0%American Express Company 2 .0%EMC Corporation 2 .0%United Technologies Corporation 2 .0%Comcast Corporation 1 .9%Thermo Fisher Scientific 1 .9%Bank of America Corporation 1 .9%Time Warner Cable 1 .8%American Tower Corporation 1 .8%Cognizant Technology Solutions Corporation 1 .8%Valeant Pharmaceuticals International 1 .8%Honeywell International 1 .7%Accenture 1 .7%Mastercard Inc . 1 .7%Google 1 .6%Fidelity National Information Services Inc . 1 .6%EOG Resources 1 .6%BlackRock Inc . 1 .6%Newell Rubbermaid 1 .6%

DFS GIF – AMERICAN EQUITY – MFS (cont.)

Foreign Equity



as at June 30, 2015


Investment ObjectiveTo outperform the S&P 500 .

Investment StrategyTo invest mainly in large cap equity securities of corporations located in the United States .











Underlying Fund Risk ManagementMonthly, the investment strategy team compares the Fund’s performance to similar funds as well as to the related benchmarks . Quarterly, this team makes an analysis of the Fund’s performance . This analysis includes among others a review of the securities having obtained a greater or lower performance than forecasts, an evaluation of the strategies used as well as a complete analysis of the sector . It also ensures the compliance with the Fund’s investment policies . Furthermore, it examines thoughtfully any change within the organization, such as the recruitment, the departure of key staff or any structure modification . Annually, this team reviews the practices and processes used by the Fund’s managers through an exhaustive questionnaire and periodic meetings .





as at June 30, 2015





Benchmark % $ $S&P 500 3 .00 489,380 407,780




DFS GIF – AMERICAN EQUITY – MFS (cont.)

Foreign Equity




As atJune 30

2015December 31

2014$ $




19,674,193 14,765,749


134,661 195,375




2015 2014$ $

INCOMEInterest for attribution purposes — 1,673 Dividends 241,693 —Changes in fair value:


1,238,093 795,585



308,456 174,126


















DFS GIF – AMERICAN EQUITY VALUE – DESJARDINS

Foreign Equity





$ $




5,828,379 2,516,501

WithdrawalsSeries 1 (116,987) (102,783)Series 3 (498,414) (178,384)Series 5 (951,451) (347,011)Series 6* (191,604) (356)Series 7* (30,402) —

(1,788,858) (628,534)



2015 2014$ $





Investments purchased (4,912,390) (2,290,793)Receivable for securities sold (14,036) 3,613 Accrued expenses 13,403 7,171 Payable for securities purchased (74,456) 22,551









DFS GIF – AMERICAN EQUITY VALUE – DESJARDINS (cont.)

Foreign Equity




Fair Value

$ $

INVESTMENT FUND (99.9%)Desjardins American Equity Value Fund, I-Class 863,717 15,126,066 19,527,768



NET ASSETS (100%) 19,539,532




Wells Fargo & Company 3 .7%Merck & Company 3 .5%Exxon Mobil Corporation 3 .5%JPMorgan Chase & Company 3 .3%Chevron Corporation 3 .2%Bank of America Corporation 2 .6%Cisco Systems 2 .4%Cash and Cash Equivalents 2 .4%Citigroup 2 .3%CVS Health Corporation 2 .0%Microsoft Corporation 1 .9%Intel Corporation 1 .8%UnitedHealth Group 1 .7%Verizon Communications 1 .6%Prudential Financial 1 .6%Pfizer 1 .6%Mondelez International Inc . 1 .6%AstraZeneca 1 .5%EOG Resources 1 .5%Comcast Corporation 1 .4%Lowe’s Companies 1 .4%Cardinal Health 1 .4%ACE Ltd 1 .4%PNC Financial Services Group 1 .4%Eversource Energy 1 .4%



as at June 30, 2015


Investment ObjectiveTo provide investors with long-term capital growth by investing primarily in U .S . equities .

Investment StrategyTo invest primarily in the common shares of high quality, publicly traded mid to large United States companies across a wide range of market sectors .







Financial Assets at FVTPLInvestment Funds 14,545,283 — — 14,545,283TOTAL 14,545,283 — — 14,545,283







DFS GIF – AMERICAN EQUITY VALUE – DESJARDINS (cont.)

Foreign Equity



as at June 30, 2015





Benchmark % $ $Russell 1000 Value 3 .00 546,063 445,790







As atJune 30

2015December 31

2014$ $




12,007,948 8,069,460


70,390 27,063




2015 2014$ $

INCOMEDividends 22,174 —Changes in fair value:


337,688 413,035



153,242 68,097






from Operations (1,440) 2,058 - per unit — 0 .05






DFS GIF – GLOBAL DIVIDEND – DESJARDINS

Foreign Equity





$ $



PremiumsSeries 5 2,593,526 2,003,184 Series 6* 2,150,956 487,884 Series 7* 209,864 1,001

4,954,346 2,492,069

WithdrawalsSeries 5 (1,019,466) (305,654)Series 6* (205,667) (7,781)Series 7* (18,498) —

(1,243,631) (313,435)



2015 2014$ $





Investments purchased (4,015,667) (2,246,092)Receivable for securities sold (25,677) (10,831)Accrued expenses 10,260 6,181 Payable for securities purchased (3,224) 13,248











Fair Value

$ $

INVESTMENT FUND (100.3%)Desjardins Global Dividend Fund, I-Class 653,958 10,854,933 11,975,281



NET ASSETS (100%) 11,937,558




Cash and Cash Equivalents 3 .1%Reynolds American 2 .5%AT&T 1 .9%Vodafone Group plc 1 .9%BCE 1 .8%National Grid 1 .8%Altria Group Inc . 1 .8%Philip Morris International 1 .7%Imperial Tobacco Group plc 1 .7%Swisscom 1 .7%Kinder Morgan 1 .7%Verizon Communications 1 .6%Health Care REIT 1 .6%Duke Energy Corporation 1 .5%Muenchener Rueckversicherung 1 .5%Royal Dutch Shell 1 .5%SSE 1 .5%Total SA 1 .4%Telstra Corporation Ltd 1 .4%GlaxoSmithKline plc 1 .4%Ameren Corporation 1 .4%Rogers Communications 1 .4%United Utilities 1 .4%CenturyLink 1 .4%Terna - Rete Elettricita Nazionale 1 .4%

DFS GIF – GLOBAL DIVIDEND – DESJARDINS (cont.)

Foreign Equity



as at June 30, 2015


Investment ObjectiveThe objective of this Fund is to provide dividend income and long term capital appreciation through the investment in equity and equity related securities of companies around the world, including, when deemed appropriate, emerging markets .

Investment StrategyIn order to achieve its investment objective, the Fund invests in companies with high dividend yields and whose management teams optimize their balance sheets through the redemption of shares or reducing debt or by opting to increase cash flows sufficiently to allow for the opportunity for dividend growth . Companies are selected which show stable or high profit growth, a lower than average debt in comparison to their industry average and whose securities are traded at a reasonable price in relation to other companies with similar characteristics . Equity related securities such as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) may be used to gain exposure to a particular stock or sector .















as at June 30, 2015






Benchmark % $ $MSCI World Net 3 .00 358 127 241 272




DFS GIF – GLOBAL DIVIDEND – DESJARDINS (cont.)

Foreign Equity


DFS GIF – GLOBAL EQUITY – MFS

Foreign Equity



As atJune 30

2015December 31

2014$ $



or loss (FVTPL) 25,425,619 23,205,563 Premiums receivable 8,331 25 Receivable for securities sold 1,526 —

25,466,083 23,237,944

LIABILITIESCurrent LiabilitiesAccrued expenses 61,654 56,001 Withdrawals payable 4,534 301 Payable for securities purchased 5,179 6,898

71,367 63,200




2015 2014$ $

INCOMEInterest for attribution purposes 34 37 Dividends 284,453 293,488 Changes in fair value:

Net realized gain (loss) on investments 390,286 260,576 Net unrealized gain (loss) on investments 2,319,276 595,633

2,994,049 1,149,734



397,962 354,340






from Operations 2,560,451 790,108 - per unit 0.45 0 .13













$ $



PremiumsSeries 3 43,187 13,527 Series 5 269,024 340,685 Series 6* 365,653 24,132 Series 7* — 1,001

677,864 379,345

WithdrawalsSeries 3 (11,449) (4,680)Series 5 (1,039,559) (888,251)Series 6* (2,971) (28)Series 7* — —

(1,053,979) (892,959)



2015 2014$ $



Adjustments for:Net realized gain (loss) (390,286) (260,576)Net unrealized gain (loss) (2,319,276) (595,633)


Investments purchased (675,876) (564,648)Receivable for securities sold (1,526) 12,771 Accrued expenses 5,653 2,606 Payable for securities purchased (1,719) —

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 378,439 533,412

CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 669,558 369,117 Amounts paid on withdrawals (1,049,746) (902,598)

NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (380,188) (533,481)

Increase (decrease) in cash/bank overdraft (1,749) (69)




DFS GIF – GLOBAL EQUITY – MFS (cont.)

Foreign Equity




Fair Value

$ $

INVESTMENT FUND (100.1%)MFS Global Research Fund 1,288,253 16,235,647 25,425,619



NET ASSETS (100%) 25,394,716




Danaher Corporation 1 .5%Novartis AG 1 .4%Exxon Mobil Corporation 1 .3%Allergan 1 .3%Wells Fargo & Company 1 .3%Roche Holding AG 1 .2%BG Group 1 .2%JPMorgan Chase & Company 1 .2%Biogen Idec Inc . 1 .1%Visa 1 .1%Google 1 .1%CVS Health Corporation 1 .1%UBS Group AG 1 .1%HSBC Holdings plc 1 .1%Time Warner 1 .0%CMS Energy Corporation 1 .0%Twenty-First Century Fox Inc . 1 .0%Valeant Pharmaceuticals International 1 .0%Nestlé SA 1 .0%KDDI Corporation 1 .0%American Express Company 1 .0%AIA Group 1 .0%Thermo Fisher Scientific 1 .0%Abbott Laboratories 0 .9%American International Group 0 .9%



as at June 30, 2015


Investment ObjectiveTo achieve long-term capital growth by investing primarily in equity securities .

Investment StrategyTo control the level of volatility of return relative to the overall stock markets by maintaining strong geographic diversification and by investing in attractively-valued securities . The Fund will primarily invest in common stocks of American, European, and Asian corporations .













DFS GIF – GLOBAL EQUITY – MFS (cont.)

Foreign Equity



as at June 30, 2015






Benchmark % $ $MSCI All Country World Net 3 .00 754,398 861,608




RECONCILIATION OF NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS (“NET ASSET”) PER UNIT AS PER THE FINANCIAL STATEMENTS WITH NET ASSET VALUE PER UNIT FOR PURPOSES OTHER THAN THE FINANCIAL STATEMENTS

As a result of new information received in January 2015, the Net Asset per unit as per the financial statements was adjusted to consider the new information . This created a difference between the Net Asset per unit as per financial statements and the Net Asset Value per unit for purposes other than the financial statements .

As at December 31, 2014

For the Series 3, the Net Asset per unit as per the financial statements is 3 .86 (the Net Asset Value per unit for purposes other than the financial statements is 3 .88) .





DFS GIF – GLOBAL – FIDELITY

Foreign Equity



As atJune 30

2015December 31

2014$ $




35,154,177 32,096,474


218,694 94,196




2015 2014$ $


Net realized gain (loss) on investments 1,298,259 487,278 Net unrealized gain (loss) on investments 3,963,803 960,320

5,262,062 1,447,598


572,847 506,515






from Operations 4,342,077 871,305 - per unit 1.00 0 .19






$ $




1,835,020 1,427,115

WithdrawalsSeries 3 (381,550) (270,639)Series 5 (3,209,480) (1,354,539)

(3,591,030) (1,625,178)



2015 2014$ $



Adjustments for:Net realized gain (loss) (1,298,259) (487,278)Net unrealized gain (loss) (3,963,803) (960,320)


Investments purchased (762,385) (1,111,088)Receivable for securities sold (11,388) (15,255)Accrued expenses 9,173 4,885 Payable for securities purchased 14,777 (127)










Fair Value

$ $

INVESTMENT FUND (100.2%)Fidelity Global Fund, Series O 660,886 19,535,982 34,997,817



NET ASSETS (100%) 34,935,483




Aetna Inc . 2 .8%JPMorgan Chase & Company 2 .6%Walt Disney Company 2 .5%Comcast Corporation 2 .5%Citigroup 2 .2%Nitto Denko Corporation 2 .1%Google 2 .0%Microsoft Corporation 1 .9%Lowe’s Companies 1 .8%eBay 1 .8%KDDI Corporation 1 .8%Holcim AG 1 .7%MS&AD Insurance Group Holdings Inc . 1 .7%Mylan 1 .7%Morgan Stanley 1 .6%Airbus Group 1 .6%ING Groep NV 1 .5%Time Warner 1 .5%Marathon Petroleum Corporation 1 .4%Bridgestone Corporation 1 .4%Cooper Companies 1 .4%ORIX Corporation 1 .3%Clariant AG 1 .3%Lam Research Corporation 1 .2%ON Semiconductor 1 .2%

DFS GIF – GLOBAL – FIDELITY (cont.)

Foreign Equity



as at June 30, 2015


Investment ObjectiveTo achieve long-term capital growth by investing primarily in equity securities of companies anywhere in the world while remaining diversified with respect to major geographic regions, capitalizations, sectors, styles, and individual holdings .

Investment StrategyTo invest primarily in the common shares and other equity investments of companies with attractive relative valuations located in many countries .















as at June 30, 2015






Benchmark % $ $MSCI All Country World Net 3 .00 1,030,804 912,713




DFS GIF – GLOBAL – FIDELITY (cont.)

Foreign Equity


DFS GIF – INTERNATIONAL EQUITY – MFS

Foreign Equity



As atJune 30

2015December 31

2014$ $



or loss (FVTPL) 12,177,720 11,123,562 Premiums receivable 15,272 1,041 Receivable for securities sold 21,113 634 Interest, dividends and other receivables 330 333

12,217,285 11,149,237

LIABILITIESCurrent LiabilitiesAccrued expenses 34,102 31,234 Withdrawals payable 49,616 112 Payable for securities purchased 2,148 910

85,866 32,256




2015 2014$ $

INCOMEInterest for attribution purposes 267 (23)Changes in fair value:

Net realized gain (loss) on investments 332,534 222,572 Net unrealized gain (loss) on investments 1,407,731 219,628

1,740,532 442,177



203,964 202,721












from Operations 1,711 —- per unit 0.08 —










$ $



PremiumsSeries 1 74,280 42,627 Series 3 198,623 165,220 Series 5 505,455 268,900 Series 6* 260,291 12,640 Series 7* 58,000 1,001

1,096,649 490,388

WithdrawalsSeries 1 (135,618) (106,408)Series 3 (918,275) (702,463)Series 5 (564,616) (432,374)Series 6* (270) (3)Series 7* — —

(1,618,779) (1,241,248)



2015 2014$ $



Adjustments for:Net realized gain (loss) (332,534) (222,572)Net unrealized gain (loss) (1,407,731) (219,628)


Investments purchased (676,673) (500,620)Receivable for securities sold (20,479) (30,148)Interest, dividends and other

receivables 3 4,375 Accrued expenses 2,868 (42)Payable for securities purchased 1,238 (976)

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES 466,040 729,079

CASH FLOWS FROM/USED IN FINANCING ACTIVITIESPremium payments 1,082,418 490,707 Amounts paid on withdrawals (1,569,275) (1,244,804)

NET CASH FLOWS FROM/USED IN FINANCING ACTIVITIES (486,857) (754,097)

Effect of exchange rate changes on foreign cash — (64)




SUPPLEMENTAL INFORMATION ON CASH FLOWS FROM/USED IN OPERATING ACTIVITIESDividends received, net of

withholding taxes — 4,375


DFS GIF – INTERNATIONAL EQUITY – MFS (cont.)

Foreign Equity




Fair Value

$ $

INVESTMENT FUND (100.4%)MFS International Equity Fund 926,063 9,004,245 12,177,720



NET ASSETS (100%) 12,131,419




Bayer AG 3 .8%Nestlé 3 .4%Compass Group plc 3 .1%WPP Group plc 3 .0%UBS Group AG 2 .6%Roche Holding AG 2 .5%Hoya Corporation 2 .5%ING Groep NV 2 .3%Taiwan Semiconductor Manufacturing Company 2 .3%AIA Group 2 .3%Yum! Brands 2 .2%Air Liquide 2 .2%Honda Motor Company Ltd 2 .2%Denso Corporation 2 .2%Pernod-Ricard SA 2 .2%Groupe Danone 2 .1%Reckitt Benckiser Group plc 2 .1%Novartis AG 2 .1%Schneider Electric 2 .1%HSBC Holdings plc 2 .1%DBS Group Holdings Ltd 1 .8%SAP SE 1 .8%Akzo Nobel NV 1 .7%Moet Hennessy Louis Vuitton 1 .7%Diageo plc 1 .7%



as at June 30, 2015


Investment ObjectiveThe fundamental investment objective of this Fund is to provide investors with long-term capital growth based on an internationally diversified equity portfolio by investing primarily in Europe and the Far East .

Investment StrategyTo invest its assets primarily in the common shares of large corporations with attractive relative valuations located in many countries .














DFS GIF – INTERNATIONAL EQUITY – MFS (cont.)

Foreign Equity



as at June 30, 2015





Benchmark % $ $MSCI EAFE Net 3 .00 396,556 338,426




RECONCILIATION OF NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS (“NET ASSET”) PER UNIT AS PER THE FINANCIAL STATEMENTS WITH NET ASSET VALUE PER UNIT FOR PURPOSES OTHER THAN THE FINANCIAL STATEMENTS

As a result of new information received in January 2015, the Net Asset per unit as per the financial statements was adjusted to consider the new information . This created a difference between the Net Asset per unit as per financial statements and the Net Asset Value per unit for purposes other than the financial statements .

As at December 31, 2014







DFS GIF – INTERNATIONAL EQUITY GROWTH – DESJARDINS

Foreign Equity



As atJune 30

2015December 31

2014$ $


ASSETSCurrent AssetsCash 560 496 Investments at fair value through profit

or loss (FVTPL) 2,308,855 1,869,392 Premiums receivable 4,251 85

2,313,666 1,869,973

LIABILITIESCurrent LiabilitiesAccrued expenses 5,961 4,656 Withdrawals payable 247 195 Payable for securities purchased 195 85

6,403 4,936




2015 2014$ $


Net realized gain (loss) on investments 28,303 14,714 Net unrealized gain (loss) on investments 225,734 (11,813)

278,753 16,788



34,805 20,228

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO CONTRACT OWNERS 243,948 (3,440)


from Operations 165,205 (1,797)- per unit 0.90 (0 .01)



from Operations 76,024 (1,617)- per unit 0.59 (0 .09)










$ $

NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS, BEGINNING OF PERIOD 1,865,037 936,456 Increase (Decrease) in Net Assets

from operations attributable to contract owners 243,948 (3,440)

PremiumsSeries 5 204,812 294,995 Series 6* 182,519 191,978 Series 7* — 1,001

387,331 487,974

WithdrawalsSeries 5 (113,555) (97,459)Series 6* (75,498) (108)Series 7* — —

(189,053) (97,567)



2015 2014$ $


from operations attributable to contract owners 243,948 (3,440)

Adjustments for:Net realized gain (loss) (28,303) (14,714)Net unrealized gain (loss) (225,734) 11,813

Proceeds from sale/ maturity of securities 162,215 86,584

Investments purchased (347,641) (471,667)Accrued expenses 1,305 1,094 Payable for securities purchased 110 (5,421)

NET CASH FLOWS FROM/USED IN OPERATING ACTIVITIES (194,100) (395,751)



Increase (decrease) in cash/bank overdraft 64 (4,930)

Cash (bank overdraft), beginning of period 496 5,440

CASH (BANK OVERDRAFT), END OF PERIOD 560 510





Fair Value

$ $

INVESTMENT FUND (100.1%)Desjardins Overseas Equity Growth Fund, I-Class 114,441 1,925,844 2,308,855



NET ASSETS (100%) 2,307,263




Tencent Holdings 4 .9%Inditex 4 .6%Fiat Chrysler Automobiles 4 .5%Baidu, ADR 4 .3%AIA Group 4 .2%Softbank Corporation 3 .6%Rolls-Royce Holdings 3 .3%Rakuten 3 .0%Alibaba Group Holding 2 .9%Atlas Copco 2 .7%ARM Holdings 2 .7%Prudential Financial 2 .6%Unicredit 2 .6%L’Oréal 2 .6%Banco Popular Espanol 2 .6%Svenska Handelsbanken 2 .2%Cash and Cash Equivalents 2 .2%Investment AB Kinnevik 2 .2%SMC Corporation 2 .1%Syngenta 2 .1%Novo Nordisk 2 .0%Hong Kong Exchanges & Clearing 1 .6%Compagnie Financière Richemont 1 .5%Kering 1 .5%MercadoLibre 1 .4%

DFS GIF – INTERNATIONAL EQUITY GROWTH – DESJARDINS (cont.)

Foreign Equity



as at June 30, 2015


Investment ObjectiveThe objective of this Fund is to achieve long term capital growth by investing in equity and equity related securities of companies located or operating outside of North America, while when appropriate, also investing in equity and equity related securities of companies located or operating in emerging markets .

Investment StrategyInvestment decisions are backed by extensive research and analysis with preference given to those companies that can sustain above average growth in earnings and cash flow and whose securities are traded at a reasonable price . The investment approach involves a bottom-up, stock driven approach to country and sector allocation and more specifically, those companies with sustainable competitive advantages and strong management teams operating in a favourable market background and display solid financial characteristics .














as at June 30, 2015







Benchmark % $ $MSCI EAFE Net 3 .00 69,218 55,951




NOTES TO THE FINANCIAL STATEMENTS – unaudited


Six-months Periods ended June 30, 2015 and 2014

1. ESTABLISHMENT OF THE FUNDSThe Desjardins Financial Security Guaranteed Investment Funds (the “Funds“) consist of thirty-nine Funds established by Desjardins Financial Security Life Assurance Company (“Desjardins Financial Security“ or the “Company“) in respect of individual variable insurance contracts issued under the Desjardins Financial Security Guaranteed Investment Funds Plan – Helios, Helios 2 and the Millennia III Plan . The assets of each Fund are segregated from the Company’s other assets and are owned by Desjardins Financial Security . The Funds are not separate legal entities . The Company’s head office is located at 200, rue des Commandeurs, Lévis, Québec, Canada G6V 6R2 .The Funds were established on the following dates by resolutions of the Board of Directors:

Series 1 Series 3 Series 5 Series 6 Series 7 Series IGP

INVESTMENTS SOLUTIONSConservative – Multi-managers — — — Feb . 24, 2014 Feb . 24, 2014 —Moderate – Multi-managers — — — Feb . 24, 2014 Feb . 24, 2014 —Balanced – Multi-managers — — — Feb . 24, 2014 Feb . 24, 2014 —Growth – Multi-managers — — — Feb . 24, 2014 Feb . 24, 2014 —Maximum Growth – Multi-managers — — — Feb . 24, 2014 Feb . 24, 2014 —

INDIVIDUAL FUNDSIncomeMoney Market Nov . 15, 1995 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 Nov . 7, 2014Income – Beutel Goodman — Apr . 17, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Income – Fiera Nov . 15, 1995 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Balanced and Asset AllocationDiversified Income – Quotential — Oct . 30, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Balanced Income – Quotential — Oct . 30, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian Balanced – Fidelity — Dec . 1, 2008 Dec . 1, 2008 Feb . 24, 2014 Feb . 24, 2014 —Canadian Balanced – Fiera Nov . 15, 1995 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian Balanced – Bissett — Dec . 5, 2005 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Balanced Growth – Quotential — Dec . 11, 2006 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian Balanced – CI Signature — — May 3, 2010 Feb . 24, 2014 Feb . 24, 2014 —Balanced – Ethical — — May 3, 2010 Feb . 24, 2014 Feb . 24, 2014 —Income and Growth – CI Signature — — Sept . 24, 2012 Feb . 24, 2014 Feb . 24, 2014 —Growth and Income – Northwest — Dec . 11, 2006 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Global Growth – Northwest Select — Jan . 14, 2002 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Global Balanced – Jarislowsky Fraser — Nov . 17, 2003 Oct . 29, 2007 — — —Canadian Asset Allocation – CI Cambridge — — Sept . 24, 2012 Feb . 24, 2014 Feb . 24, 2014 —Growth – Quotential — Oct . 30, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Global High Income – Multi-managers — Mar . 12, 2007 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian EquityDividend Income – Bissett — Apr . 17, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian Dividend – Fiera Dec . 16, 1997 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian Dividend – Northwest — — Sept . 24, 2012 Feb . 24, 2014 Feb . 24, 2014 —Canadian Equity – Fidelity True North® — Dec . 1, 2008 Dec . 1, 2008 Feb . 24, 2014 Feb . 24, 2014 —Canadian Equity – Bissett — Apr . 17, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Canadian Equity – Fiera Nov . 15, 1995 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 Nov . 7, 2014Canadian Equity – Jarislowsky Fraser — Dec . 5, 2005 Oct . 29, 2007 — — —Specialty Equity – Northwest — Dec . 11, 2006 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Small Cap – Bissett — Apr . 17, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Foreign EquityAmerican Equity – MFS — Apr . 17, 2000 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —American Equity Value – Desjardins Nov . 15, 1995 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Global Dividend – Desjardins — — Sept . 24, 2012 Feb . 24, 2014 Feb . 24, 2014 —Global Equity – MFS — Dec . 1, 2008 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —Global – Fidelity — Nov . 17, 2003 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —International Equity – MFS Nov . 15, 1995 Dec . 14, 1998 Oct . 29, 2007 Feb . 24, 2014 Feb . 24, 2014 —International Equity Growth – Desjardins — — Sept . 24, 2012 Feb . 24, 2014 Feb . 24, 2014 —

The interim financial statements (“financial statements“) of the Funds are presented in Canadian dollars (CAD), the Funds’ functional and presentation currency .

NOTES TO THE FINANCIAL STATEMENTS – unaudited


2. BASIS OF PRESENTATION

International Financial Reporting Standards (“IFRS“)These financial statements have been prepared in compliance with International Financial Reporting Standards (“IFRS“), applicable to the preparation of financial statements . The Funds adopted this basis of accounting in 2014, as required by Canadian securities legislation and the Canadian Accounting Standards Board .

Statement of Compliance The policies applied in these financial statements are based on IFRS published and adopted as of September 18, 2015, the date on which financial statements have been approved for publication by the Audit and Risk Management Committee of the Company .

Significant Accounting PoliciesThe significant measurement and presentation policies applied to prepare these financial statements are described below .

Financial Assets and LiabilitiesThe Funds’ financial assets consist primarily of investments in non-derivative financial instruments and derivative financial instruments presented in the Schedule of Investment Portfolio . Financial liabilities consist primarily of derivative financial instruments . Financial assets and liabilities are recognized on the date the Funds become a party to the contractual provisions of the instrument, namely the trade date .

Classification of Financial InstrumentsThe Funds classify their financial assets and liabilities in the following categories:Financial assets at fair value through profit or loss (“FVTPL“): • Held for trading: derivative financial instruments;• Designated at FVTPL: all other investments including equity and fixed-income securities .Financial assets at amortized cost:• Loans and receivables: cash and all other receivables .Financial liabilities at FVTPL:• Held for trading: derivative financial instruments and short positions .Financial liabilities at amortized cost:• Bank overdraft and all other payables .A financial instrument is designated at FVTPL if it eliminates or significantly reduces a measurement or a recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases .The Funds’ obligation concerning net assets attributable to holders of redeemable units is recorded at the redemption amount that approximates fair value . The accounting policies used to measure the fair value of investments and derivatives are identical to those used in measuring the net asset value for transactions with contract owners except where the closing price for financial assets and liabilities is not within the bid-ask spread .As at June 30, 2015 and December 31, 2014, there were no differences between the Funds’ net asset value per unit for transactions and their net assets attributable to contract owners of redeemable units in accordance with IFRS, except for the DFS GIF – Global Equity – MFS and the DFS GIF – International Equity – MFS as at December 31, 2014 .

Determination of the Fair Value of Financial InstrumentsFair value is the price that would be received from selling an asset or paid to transfer a liability in an ordinary transaction between market participants at the valuation date . The fair value of financial assets and liabilities traded in active markets are based on quoted market prices at the close of trading on the valuation date and there is little subjectivity in its determination . The Funds use the closing price for both financial assets and financial liabilities where this price falls within the bid-ask spread . In circumstances where the closing price is not within the bid-ask spread, the Company determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances . The fair value of financial assets and liabilities that are not traded in an active market, including over-the-counter derivatives, is determined using valuation techniques . The Funds use a variety of methods and make assumptions that are based on existing market conditions at each valuation date . Valuation techniques include the use of comparable recent arm’s length transactions, the fair value of other instruments that are substantially the same, discounted cash flow analysis, option pricing models and others commonly used by market participants and which make the maximum use of observable inputs . Refer to Note 7, “Financial Instruments Disclosures” for further information about the Funds’ fair value measurements .LiquidityCash (bank overdraft) is measured at cost, which closely approximates fair value .Money Market SecuritiesMoney market securities are recorded at cost, together with accrued interest, which closely approximates fair value .Equities and Index-Based InvestmentsEquity and index-based investments securities are recorded at the closing price of the accredited stock exchange on which the corresponding security is principally traded . Non-rated warrants are valued with a recognized valuation model, including Black & Scholes .

NOTES TO THE FINANCIAL STATEMENTS – unaudited (cont.)


Bonds, Mortgage-Backed Securities and Asset-Backed SecuritiesBonds, mortgage-backed securities and asset-backed securities are valued based on prices obtained from recognized securities dealers .Investment FundsUnits of underlying funds are generally valued based on the net asset value per unit provided by the underlying fund’s manager at the end of each valuation day .Derivative Financial InstrumentsCertain Funds may use an array of derivative financial instruments such as foreign currency forward and futures contracts for hedging purposes or purposes other than hedging, or both . The fair value of derivative financial instruments is presented without taking into account the impact of legally binding master netting agreements .

Foreign Currency Forward Contracts and Forward ContractsThe fair value of these instruments corresponds to the gains or losses that would result from the contract close-out on the valuation date; this value is recorded in “Unrealized appreciation (depreciation) on derivatives“ in the Statement of Financial Position .

Futures ContractsFutures contracts are valued at fair value and are settled daily through brokers acting as intermediaries . Any amounts receivable (payable) from the settlement of futures contracts are recorded in “Receivable (Payable) on futures contracts“ in the Statement of Financial Position .Valuation of Unlisted Securities and Other Investments When the valuation principles of the aforementioned investments are not appropriate, fair value is determined according to the Company’s best estimates, based on established valuation procedures and on prevailing market conditions on each valuation date . These procedures cover, among others, securities no longer traded, securities issued by private corporations and illiquid securities . For further information, refer to Note 3 “Critical Accounting Judgments, Estimates and Assumptions“ .

Investment TransactionsInvestment transactions are accounted for on the trade date . Cost is determined on an average cost basis except for money market securities, for which the cost is determined using the First In First Out method . The average cost does not include amortization of premiums or discounts on fixed-income securities with the exception of stripped bonds . Transaction costs, such as brokerage commissions, incurred in the purchase and sale of securities by the Funds are recognized in the Statement of Comprehensive Income . The difference between the unrealized appreciation (depreciation) of investments at the beginning and at the end of the period is included in “Net unrealized gain (loss) on investments“ in the Statement of Comprehensive Income . On disposal of an investment, the difference between the fair value and the cost of the investment is included in “Net realized gain (loss) on investments“ in the Statement of Comprehensive Income .

Offsetting Financial Assets and Financial LiabilitiesFinancial assets and liabilities are offset in the Statement of Financial Position for the Funds only when there is:• a legally enforceable and unconditional right to offset the recognized amounts and;• an intention to settle on a net amount, or to close-out the asset and settle the liability simultaneously .The Funds have a legally enforceable and unconditional right to offset a financial asset and liability when they meet the following criteria:• the right is enforceable in the normal course of business and;• the right is enforceable in the event of default, insolvency or bankruptcy .Over-the-counter derivatives, securities lending, repurchase transactions and receivable for securities sold and payable for securities purchased that are subject to master netting or similar agreements do not meet the criteria for offsetting in the Statement of Financial Position, as they give a right to a set-off that is enforceable only in the event of default, insolvency or bankruptcy . Exchange-traded derivatives traded through brokers that are also subject to master netting agreements do not meet the criteria for offsetting, as they give a right to a set-off that is only enforceable in the normal course of business .In conclusion, the Funds cannot offset the amounts in the Statement of Financial Position, as the conditions mentioned above have not been met .

Other Assets and LiabilitiesMargin deposited on derivatives, receivable on futures contracts, premiums receivable, receivable for securities sold, and interest, dividends and other receivables are classified as loans and receivables and are recorded at cost .Similarly, overdraft on margin deposited on derivatives, accrued expenses, payable on futures contracts, withdrawals payable, payable for securities purchased, interest, dividends and others payables, as well as distributions payable, are classified as financial liabilities and recorded at cost . Given their short term maturity, their carrying amount approximates their fair value .

Securities Lending and Repurchase Transactions Certain Funds may enter into securities lending and repurchase transactions through the securities lending program of the Funds’ custodian, Desjardins Trust Inc . (Trust) .The loaned securities and repurchased securities are not derecognized in the Statement of Financial Position as substantially all the risks and advantages of ownership of these securities is kept by the Company . To limit the risk that the counterparty fails to fulfill its obligations, the Funds obtain collateral, representing at least 102% of the contract amount, determined daily based on the fair value of the previous business day’s loaned securities or repurchase transactions . Securities received as collateral in securities lending transactions are not recognized in the Statement of Financial Position as substantially all the risks and advantages of ownership of


these securities have not been transferred to the Funds . Cash guarantees received for securities lending and repurchase transactions are recognized as financial assets in “Cash guarantee received for securities lending“ and/or “Cash guarantee received for repurchase transactions“, as appropriate in the Statement of Financial Position . A liability representing the obligation to return the securities is recognized in “Commitments related to securities lending” and/or “Commitments related to repurchase transactions”, as appropriate .Revenue generated through the securities lending program is recognized at a predetermined rate . This revenue is included in “Revenue from securities lending and repurchase transactions“ in the Statement of Comprehensive Income .For further information regarding the Funds authorized to engage in repurchase and securities lending transactions, please refer to the “Notes to the Financial Statements – Specific Information“ pertaining to each Fund .

IncomeInterest for attribution purposes from investments in debt securities and presented in the Statement of Comprehensive Income is recognized as it is earned . The Funds do not amortize premiums paid or discounts received on the purchase of debt securities except for stripped bonds, which are amortized on a straight line basis . Dividends are recognized as income on the ex-dividend date . Interest and dividend distributions received from underlying funds are recorded at the date of distribution . Distributions received from income and royalty trust investments are classified as income, capital gains or return of capital based on amounts reported by the management of these trusts . If such specific information is not available, the Company will determine the split at its discretion . Foreign income is accounted for on a gross amount received and is included in the income section in the Statement of Comprehensive Income .On derivative contract close-out, the gains and losses from derivatives held for hedging purposes are included in “Net realized gain (loss) on derivatives“ in the Statement of Comprehensive Income . Gains and losses from derivatives held for purposes other than hedging are included in “Net income (loss) from derivative financial instruments“ in the Statement of Comprehensive Income .

Foreign Currency TranslationThe Funds’ premiums and withdrawals are denominated in Canadian dollars . Foreign currency assets and liabilities denominated in a foreign currency are translated into the functional currency at the exchange rate on each valuation date . Purchases and sales of securities, as well as income and expenses denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates . Foreign exchange gains and losses relating to cash are presented as “Foreign exchange gain (loss) on cash“ and those relating to other financial assets and liabilities are presented within “Net realized gain (loss) on investments“ and “Net unrealized gain (loss) on investments“ in the Statement of Comprehensive Income .

Increase (Decrease) in Net Assets per Unit from Operations Attributable to Contract Owners The increase (decrease) in net assets per unit from operations attributable to Contract Owners, presented in the Statement of Comprehensive Income is calculated by dividing the increase (decrease) in net assets from operations attributable to Contract Owners per unit by the average number of units outstanding during the period .

Taxation

Under the Income Tax Act (Canada), each Fund is treated as a segregated fund trust . The Fund’s income, as well as gains or losses realized, if any, are allocated to Contract Owners on a regular basis . In the case of interest that accumulates in a registered account, Contract Owners will not receive annual tax slips . However, any amount paid to Contract Owners or former Contract Owners may be subject to be taxed in their hands . On the other hand, interest that accumulates in a non-registered account, Contract Owners will receive an annual tax slip for any income, gains or losses allocated . Under current tax laws, Funds do not pay income taxes, with the exception of foreign tax withholdings that may apply .

In certain circumstances, to avoid double taxation to the Contract Owners, the Funds adjust the cost of the investments held to properly reflect the adjusted cost base for tax purposes .

Investment in Entities

The Funds meet the definition of IFRS 10, Consolidated Financial Statements, of investment entities and account for their investments in underlying funds at FVTPL .

According to IFRS 12, Disclosure of Interests in Other Entities, the Funds must disclose specific information on their investments in other entities, as Subsidiaries, Associates and Structured Entities .SubsidiariesAn entity, including investments in any other investment entity, is considered as a subsidiary when it is controlled by another entity . The Fund controls an entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and through its power over the entity .AssociatesAssociates are investments in entities over which the Fund exercises significant influence without, however, exercising control .Structured EntitiesStructured Entities are conceived in a way that the right to vote and other similar rights are not determining factors in who exercises control . The Company has determined that its investments in underlying funds, index-based investments, asset-backed securities and mortgage-backed securities are Structured Entities, unless the specified relationship is different .

Refer to the section “Notes to the Financial Statements – Specific Information“ pertaining to each Fund for more information on these entities .



Accounting Standards Issued but not yet AppliedIn November 2009, IFRS 9, Financial Instruments, was issued and subsequently amended in October 2010 . This was the first phase of the project on classification and measurement of financial assets and liabilities . IFRS 9 will replace IAS 39, Financial Instruments: Recognition and Measurement . IFRS 9 has been completed in three phases, including minor amendments to classification and measurement of financial assets and liabilities, impairment of financial assets, and general hedge accounting . Accounting for macro hedging has been removed from IFRS 9 and is expected to be issued as a separate standard . The effective date will be January 1, 2018 with early adoption permitted . The Manager is currently assessing the impact of the adoption of these amendments on the financial statements .

3. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of financial statements requires the Management of the Company to use judgment in applying its accounting policies and to make estimates and assumptions about the future . Actual results may differ from these estimates . The following discusses the most significant accounting judgments and estimates that the Funds have made in preparing the financial statements .

Fair Value Measurement of Derivatives and Securities not Quoted in an Active Market

The Funds may hold financial instruments that are not quoted in active markets, including derivatives . Fair value is determined based on models that make maximum use of observable inputs and rely as little as possible on unobservable inputs . The Funds consider the data observable if that market data is readily available, distributed or updated on a regular basis, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market . The models used to determine fair values are validated and periodically reviewed by experienced personnel of the Company .

When no quoted prices are available, the fair value is estimated using present value or other valuation methods, which are influenced by the assumptions used concerning the amount and timing of estimated future cash flows and discount rates, which reflect varying degrees of risk, including liquidity risk, credit risk, and risks related to interest rates, exchange rates, and price and rate volatility .

The calculation of the fair values may differ given the role that judgment plays in applying the acceptable estimation and valuation techniques . Estimated fair value reflects market conditions on a given date and for this reason, it may not be representative of future fair values . Refer to Note 2, “Basis of Presentation“ for further information on fair value measurement of financial instruments .

Classification and Measurement of Investments and Application of the Fair Value Option

In classifying and measuring financial instruments held by the Funds, the Company is required to make significant judgments about whether or not the business of the Funds is to invest on a total return basis for the purpose of applying the fair value option for financial assets under IAS 39. The most significant judgment lies in determining if certain investments are held-for-trading, and whether the fair value option can be applied to those that are not . For further information on financial instruments, refer to Note 2, “Basis of Presentation“ .

4. NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS

Structure of the Funds and the Units attributedThe Funds are wholly owned assets of Desjardins Financial Security, which have been segregated from the Company’s other assets . Except for instances where the Company has acquired an interest in a Fund, the Funds’ assets may only be used to pay benefits under the Contracts .Each Fund has a series of units, which are attributed to Contracts for the purpose of determining the value of benefits to the units attributable to those Contracts . A Contract Owner acquires no direct claim on the units or assets of a Fund by purchasing a Contract but only the benefits that are provided under the Contract .Units within the same series of Funds have the same net asset value per unit . Subject to the Company’s administrative rules, Contract Owners have the right to make transactions under their Contracts such as premiums, withdrawals and switches between units of Funds . As a result of these transactions, units are attributed to and withdrawn from the Contract based on each Contract’s terms and conditions or as provided by law . Since the Contract Owner does not own units of a Fund, ownership of units cannot be sold or transferred to another party . There are no voting rights associated with the units of the Fund .

Classification of Units Attributable to Contract OwnersUnder IFRS, IAS 32, Financial Instruments: Presentation, requires that units or shares of an entity which include a contractual obligation for the issuer to repurchase or redeem them for cash or another financial asset be classified as financial liability . Since the units of the Funds do not meet the criteria in IAS 32 for classification as equity, they are presented as financial liabilities .The Funds issue series of units to Contract Owners that include a contractual obligation for the issuer to repurchase or redeem them for cash or another financial asset . These series of units attributable to Contract Owners have different characteristics and are therefore classified as financial liabilities .

Valuation of the UnitsThe units of a Fund are valued according to the administrative rules established by the Company and in accordance with the Contract and all laws and regulations applicable to the Funds .These units differ with respect to redemption charges and management fees charged to each series (See Note 5) . The net asset value per unit is determined on each market day by dividing the net assets attributable to Contract Owners by its outstanding units .


Series of units availableThe Desjardins Financial Security Guaranteed Investment Funds Plan, the Millennia III Plan, and the Imperial Growth Plan, as well as the various Contract versions offered under each of these Plans, offers different Series providing different guarantees and provisions as well as varying Management Expense Ratios (MERs) .Series 1: This Series was offered under the Millennia III Plan through two different Contracts: the Millennia lll and Millennia lll – New Era Contracts . The Millennia III Plan was offered from November 15, 1995 to October 28, 2007 .Series 3: This Series was offered under the Millennia III Plan through two different Contracts: the Millennia lll – Classic and Millennia lll – New Era Contracts . The Millennia III Plan was offered from November 15, 1995 to October 28, 2007 .Series 5: This Series was offered under the Desjardins Financial Security Guaranteed Investment Funds Plan through the Helios Contract . The Desjardins Financial Security Guaranteed Investment Funds Plan was first offered starting on October 29, 2007 and currently, the only Contract available is the Helios2 Contract .Series 6: This Series is offered under the Desjardins Financial Security Guaranteed Investment Funds Plan through the Helios2 Contract . The Desjardins Financial Security Guaranteed Investment Funds Plan was first offered starting on October 29, 2007 and currently, the only Contract available is the Helios2 Contract .Series 7: This Series is offered under the Desjardins Financial Security Guaranteed Investment Funds Plan through the Helios2 Contract . The Desjardins Financial Security Guaranteed Investment Funds Plan was first offered starting on October 29, 2007 and currently, the only Contract available is the Helios2 Contract .Series IGP: This Series was offered under the Imperial Growth Plan through the three remaining Contracts (C71, C81, and C88) . The Imperial Growth Plan was offered pre-1995 .

Number of UnitsThe number of units outstanding in each Fund as at June 30, 2015 and 2014 and the number of units attributed to and withdrawn from Contracts during each period are as follows:

Outstanding Units Attributed Units Withdrawn Units2015 2014 2015 2014 2015 2014

INVESTMENT SOLUTIONSConservative – Multi-managers

Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,030,128 145,592 556,231 145,903 76,389 311Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,254 200 114,197 200 1,861 —

Moderate – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,683,835 281,040 825,828 282,319 108,804 1,279Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,666 200 176 200 — —

Balanced – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,883,075 460,616 1,243,279 464,571 62,865 3,955Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,391 200 110,083 200 28,869 —

Growth – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,793,394 338,342 957,026 338,982 74,382 640Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,206 200 2,650 200 544 —

Maximum Growth – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,722 92,404 96,680 92,611 12,100 207Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,854 200 — 200 — —

INDIVIDUAL FUNDS Income Money Market

Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,332 91,620 90 147 10,442 5,000Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,468 609,351 69,454 105,267 49,698 97,944Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,740,578 3,475,028 615,655 754,584 849,957 974,970Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 958,703 170,674 937,180 263,983 303,672 93,309Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,885 360 195,972 33,637 194,544 33,277Series IGP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,300 — 18,985 — 36,035 —

Income – Beutel Goodman Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589,218 684,422 19,734 12,417 61,700 85,969Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,995,863 5,901,328 208,938 304,171 785,417 791,534Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467,182 143,849 213,294 150,367 65,243 6,518Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,174 200 25,049 200 3,501 —




Income – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287,760 340,917 4,190 20,276 17,526 50,858Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716,079 892,434 36,906 32,485 107,066 173,613Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,112,588 9,315,273 282,085 336,776 806,183 2,055,102Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740,554 97,904 323,606 100,699 64,581 2,795Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,771 200 17,543 200 131 —

Balanced and Asset Allocation Diversified Income – Quotential

Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 897,027 969,050 77,594 139,835 110,811 194,086Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,904,178 24,355,016 1,125,554 1,307,389 2,105,696 2,128,978Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,633,077 345,218 1,287,564 348,468 148,142 3,250Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,513 200 112,373 200 160 —

Balanced Income – Quotential Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,530,408 1,692,419 88,912 129,177 175,438 239,365Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,318,029 36,925,414 1,509,426 1,279,821 2,883,100 2,105,669Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,516,437 331,636 660,509 334,005 37,178 2,369Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394,601 102,317 106,074 102,479 3,556 162

Canadian Balanced – Fidelity Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,146,291 1,157,398 131,679 128,630 117,493 123,420Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,265,987 99,438,117 4,452,320 2,914,338 7,475,089 6,713,802Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,747,466 611,830 1,729,630 615,728 464,280 3,898Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,646 200 39,890 200 1,042 —

Canadian Balanced – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 878,930 1,043,883 6,128 18,953 94,002 87,968Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,768,615 2,010,049 67,851 45,556 164,965 264,094Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,218,178 15,414,201 461,203 341,315 1,230,791 1,156,701Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815,983 52,687 500,386 52,763 30,638 76Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,690 200 36,471 200 915 —

Canadian Balanced – Bissett Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,084,208 1,304,367 39,026 191,656 164,114 272,331Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,563,062 28,655,510 817,842 2,794,760 3,140,031 1,659,276Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,236,803 675,989 1,294,923 677,220 394,379 1,231Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,125 48,319 185,051 48,463 15,762 144

Balanced Growth – Quotential Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,059,313 2,394,696 119,721 83,527 241,716 161,391Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,091,352 82,791,216 3,127,836 2,105,533 5,670,090 3,699,194Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,857,135 731,774 1,372,259 733,153 102,946 1,379Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,655 200 53,461 200 870 —

Canadian Balanced – CI SignatureSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,572,606 13,124,472 1,572,463 562,324 1,041,937 806,300Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,990,194 206,856 1,601,972 209,801 195,308 2,945Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235,145 200 123,129 200 7,566 —

Balanced – Ethical Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,336,703 1,400,372 59,156 71,849 71,341 185,379Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,995 23,827 107,122 23,857 26,818 30Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,861 200 — 200 — —

Income and Growth – CI SignatureSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,482,858 7,871,415 1,032,579 1,118,169 782,050 290,247Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,575,219 249,628 1,481,505 250,784 111,430 1,156Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,454 33,725 74,367 33,725 7,154 —

Growth and Income – Northwest Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,641 519,868 18,132 52,462 57,677 33,378Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,433,388 25,118,776 782,603 1,691,965 2,003,618 1,245,485Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,668,694 284,623 751,504 287,877 205,678 3,254Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,153 200 16,460 200 700 —

Global Growth – Northwest Select Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574,366 686,674 11,723 13,535 53,464 130,304Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,941,339 9,238,039 448,619 359,260 511,719 416,832



Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,025,238 111,329 566,636 111,520 26,726 191Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,106 200 16,821 200 708 —

Global Balanced – Jarislowsky Fraser Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,053,668 1,150,815 81,575 74,208 94,367 186,239Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,240,212 18,823,371 1,385,634 1,291,918 1,487,572 1,187,562

Canadian Asset Allocation – CI CambridgeSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845,968 815,817 120,007 334,495 94,026 66,338Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486,828 97,914 268,747 98,533 23,808 619Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,203 200 356 200 — —

Growth – Quotential Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497,872 598,996 12,171 60,678 61,219 106,670Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,249,569 10,136,916 129,472 258,215 553,014 468,941Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,340 13,353 240,360 13,367 31,840 14Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,455 200 558 200 — —

Global High Income – Multi-managers Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322,211 357,340 76,772 51,369 103,978 90,474Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,153,441 3,255,405 246,209 293,964 290,540 157,587Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298,192 50,424 123,262 50,593 20,592 169Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,143 200 358 200 — —

Canadian Equity Dividend Income – Bissett

Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,471,360 2,843,575 74,993 142,085 332,146 470,395Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,309,592 9,349,794 363,862 788,142 1,220,709 667,734Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 991,509 304,507 255,035 307,151 96,975 2,644Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,797 75,996 20,978 76,138 41,171 142

Canadian Dividend – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408,139 478,515 2,392 42,792 42,128 74,021Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,388 2,051,040 31,741 37,454 207,875 228,468Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,154,695 9,280,975 134,151 146,490 832,423 795,710Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,657 33,962 92,410 34,187 17,151 225Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,958 200 — 200 — —

Canadian Dividend – NorthwestSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,516,978 2,280,384 527,317 647,984 385,178 224,765Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341,269 46,618 161,584 46,677 24,351 59Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,864 40,237 — 40,237 — —

Canadian Equity – Fidelity True North®

Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,599 98,147 28,103 18,324 17,476 23,679Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,173,575 2,252,264 202,818 255,693 254,669 200,017Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 927,118 119,366 576,622 124,968 122,092 5,602Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,180 200 69,063 200 588 —

Canadian Equity – Bissett Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,547,399 1,797,438 40,393 66,154 191,887 195,840Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,240,536 1,383,578 64,621 248,086 191,546 85,832Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,905 136,525 129,329 138,246 98,000 1,721Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,866 200 122 200 1 —

Canadian Equity – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,409,536 1,631,096 19,206 10,979 120,756 149,728Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,173,232 1,350,440 24,503 25,667 121,480 127,785Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427,238 466,604 21,494 21,782 43,699 47,540Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,109 23,752 43,059 23,838 6,452 86Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,311 200 — 200 356 —Series IGP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377,145 — 947 — 100,292 —

Canadian Equity – Jarislowsky Fraser Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765,030 975,069 13,697 21,364 112,765 98,689Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,384,677 26,045,909 218,674 339,838 2,059,575 1,419,554




Specialty Equity – NorthwestSeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617,035 746,760 11,246 15,273 92,592 72,819Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,051,139 2,419,060 214,321 180,235 480,108 272,217Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,529 25,445 94,655 25,474 34,441 29Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,054 200 — 200 — —

Small Cap – Bissett Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531,398 658,606 6,704 24,690 82,763 75,936Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635,678 790,296 39,555 166,311 142,995 59,602Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384,526 84,901 136,653 86,419 83,349 1,518Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,172 18,788 139 18,788 18,526 —

Foreign EquityAmerican Equity – MFS

Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 681,682 785,221 36,421 49,100 108,615 79,346Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,453,389 1,273,742 312,475 272,014 131,286 91,924Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418,187 105,699 252,396 106,045 16,434 346Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,229 200 18,347 200 — —

American Equity Value – DesjardinsSeries 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318,598 335,708 17,601 18,481 15,620 16,932Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368,851 384,817 43,676 15,457 61,097 27,117Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,330,455 963,919 383,321 289,482 116,918 51,958Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 472,978 60,604 310,407 60,674 31,259 70Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,101 14,820 46,576 14,820 5,310 —

Global Dividend – DesjardinsSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,044,820 761,886 327,702 298,433 128,944 44,980Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663,894 93,482 368,453 94,990 35,484 1,508Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,052 200 35,497 200 3,227 —

Global Equity – MFS Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,444 42,688 10,086 3,747 2,717 1,281Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,585,406 5,852,657 61,317 91,934 239,729 239,011Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,142 4,854 62,809 4,860 514 6Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,940 200 — 200 — —

Global – Fidelity Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345,277 392,245 31,050 15,990 53,155 45,407Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,277,398 4,551,874 217,734 216,998 442,233 219,678

International Equity – MFSSeries 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,582 378,961 11,668 7,487 21,369 18,764Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823,862 985,106 30,272 28,283 140,134 119,981Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583,974 619,959 71,810 43,610 81,528 69,994Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,298 2,545 46,414 2,546 48 1Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,532 200 10,175 200 — —

International Equity Growth – DesjardinsSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,615 158,813 25,450 40,641 14,402 13,642Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,782 39,100 33,057 39,122 13,456 22Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,150 200 — 200 — —

5. MANAGEMENT FEES AND OTHER EXPENSES

Management feesIn return for investment management, Desjardins Financial Security is paid a management fee from the Funds based on the net asset value of the Funds’ units attributable to each series of units and calculated daily .The management fees, as a percentage of the daily average net assets, are as follows:


Series 1 Series 3 Series 5 Series 6 Series 7 Series IGP% % % % % %

INVESTMENT SOLUTIONSConservative – Multi-managers — — — 1 .95 1 .50 —Moderate – Multi-managers — — — 2 .00 1 .55 —Balanced – Multi-managers — — — 2 .00 1 .55 —Growth – Multi-managers — — — 2 .05 1 .60 —Maximum Growth – Multi-managers — — — 2 .05 1 .60 —

INDIVIDUAL FUNDSIncomeMoney Market 0 .75 0 .75 0 .75 0 .80 0 .35 1 .30Income – Beutel Goodman — 1 .82 1 .05 1 .35 0 .90 —Income – Fiera 1 .50 1 .38 1 .09 1 .35 0 .90 —Balanced and Asset AllocationDiversified Income – Quotential — 1 .90 1 .96 2 .20 1 .75 —Balanced Income – Quotential — 1 .90 1 .96 2 .15 1 .70 —Canadian Balanced – Fidelity — 2 .02 2 .02 2 .20 1 .75 —Canadian Balanced – Fiera 2 .00 1 .65 1 .68 2 .00 1 .55 —Canadian Balanced – Bissett — 1 .95 1 .75 2 .00 1 .55 —Balanced Growth – Quotential — 1 .90 1 .96 2 .15 1 .70 —Canadian Balanced – CI Signature — — 1 .89 2 .15 1 .70 —Balanced – Ethical — — 1 .88 2 .20 1 .75 —Income and Growth – CI Signature — — 2 .20 2 .20 1 .75 —Growth and Income – Northwest — 2 .22 2 .03 2 .20 1 .75 —Global Growth – Northwest Select — 2 .33 2 .10 2 .30 1 .85 —Global Balanced – Jarislowsky Fraser — 2 .10 1 .69 — — —Canadian Asset Allocation – CI Cambridge — — 2 .20 2 .05 1 .60 —Growth – Quotential — 2 .15 2 .21 2 .20 1 .75 —Global High Income – Multi-managers — 1 .70 1 .96 2 .10 1 .65 —Canadian EquityDividend Income – Bissett — 2 .06 1 .75 2 .15 1 .70 —Canadian Dividend – Fiera 1 .50 1 .13 1 .59 2 .05 1 .60 —Canadian Dividend – Northwest — — 2 .20 2 .15 1 .70 —Canadian Equity – Fidelity True North ® — 2 .02 2 .02 2 .25 1 .80 —Canadian Equity – Bissett — 2 .18 1 .75 2 .10 1 .65 —Canadian Equity – Fiera 2 .00 1 .63 1 .59 1 .95 1 .50 1 .80Canadian Equity – Jarislowsky Fraser — 2 .15 1 .69 — — —Specialty Equity – Northwest — 2 .35 2 .16 2 .40 1 .95 —Small Cap – Bissett — 2 .25 2 .01 2 .40 1 .95 —Foreign EquityAmerican Equity – MFS — 2 .25 1 .71 2 .15 1 .70 —American Equity Value – Desjardins 2 .00 1 .69 2 .06 2 .10 1 .65 —Global Dividend – Desjardins — — 2 .20 2 .20 1 .75 —Global Equity – MFS — 1 .78 1 .78 2 .25 1 .80 —Global – Fidelity — 2 .30 2 .23 — — —International Equity – MFS 2 .00 1 .95 1 .69 2 .25 1 .80 —International Equity Growth – Desjardins — — 2 .20 2 .20 1 .75 —

Operating expensesIn addition to management fees, a charge is applied to each Fund for operating and administrative expenses relating to the Fund . Each Fund is also responsible for all applicable taxes, including Goods and Services Tax (“GST“) and Harmonized Sales Tax (“HST“) if any, and all brokerage commissions incurred by a Fund in buying and selling investments on behalf of a Fund .



Management Expense RatiosSome expenses (audit fees, legal fees, custodial fees, marketing costs, etc . ) have been absorbed by the Company . Management expense ratios for all the Funds would be nine basis points higher if these expenses had been charged to the Funds . The Company does not intend to change its method of allocating costs .The management expense ratios for the period ended June 30, 2015 and for each of the past five years, which includes management, guarantee and operating expenses, are as follows*:

June 30 2015

December 31 2014

December 31 2013

December 31 2012

December 31 2011

December 31 2010

% % % % % %INVESTMENT SOLUTIONSConservative – Multi-managers

Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4900 2 .5100** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0100 2 .0100** — — — —

Moderate – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5100 2 .5400** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9000 2 .0700** — — — —

Balanced – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5700 2 .5700** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1300 2 .1300** — — — —

Growth – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6800 2 .6800** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1800 2 .1800** — — — —

Maximum Growth – Multi-managersSeries 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7100 2 .7100** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2400 2 .2400** — — — —

INDIVIDUAL FUNDSIncomeMoney Market***

Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7200 1 .7200 1 .7200 1 .5500 1 .5500 1 .5500Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7200 1 .7300 1 .7200 1 .5500 1 .5500 1 .5500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3900 1 .3900 1 .4000 1 .2500 1 .2500 1 .2500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1000 1 .1100** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6300 0 .6300** — — — —Series IGP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6600 1 .6700** — — — —

Income – Beutel Goodman***Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8600 2 .8700 2 .8600 2 .5500 2 .5500 2 .5500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9600 1 .9700 1 .9700 1 .7500 1 .7500 1 .7500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7500 1 .7500** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3200 1 .3200** — — — —

Income – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9300 2 .9400 2 .9300 2 .6500 2 .6500 2 .6500Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6100 2 .6200 2 .6100 2 .3300 2 .3300 2 .3300Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9600 1 .9600 1 .9500 1 .7500 1 .7500 1 .7500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7900 1 .8000** — — — — Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3100 1 .3200** — — — —

Balanced and Asset AllocationDiversified Income – Quotential

Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1300 3 .1400 3 .1500 2 .8000 2 .8000 2 .8000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9200 2 .9200 2 .9200 2 .6000 2 .6000 2 .6000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6800 2 .7200** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2700 2 .3000** — — — —

Balanced Income – QuotentialSeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2000 3 .2000 3 .2000 2 .8500 2 .8500 2 .8500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9500 2 .9500 2 .9400 2 .6000 2 .6000 2 .6000


June 30 2015

December 31 2014

December 31 2013

December 31 2012

December 31 2011

December 31 2010

% % % % % %Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7500 2 .7400** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3000 2 .3000** — — — —

Canadian Balanced – FidelitySeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4100 3 .4100 3 .4000 3 .0000 3 .0000 3 .0000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9600 2 .9600 2 .9600 2 .6500 2 .6500 2 .6500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8200 2 .8300** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3400 2 .3600** — — — —

Canadian Balanced – Fiera***Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8300 3 .8200 3 .8200 3 .4000 3 .4000 3 .4000Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2000 3 .1900 3 .1900 2 .8500 2 .8500 2 .8500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5500 2 .5500 2 .5500 2 .3000 2 .3000 2 .3000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5900 2 .6000** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1200 2 .1300** — — — —

Canadian Balanced – Bissett Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1700 3 .1900 3 .1800 2 .8500 2 .8500 2 .8500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7700 2 .7700 2 .7700 2 .5000 2 .5000 2 .5000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5900 2 .6100** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1000 2 .0000** — — — —

Balanced Growth – QuotentialSeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2700 3 .2700 3 .2900 2 .9500 2 .9500 2 .9500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9700 2 .9700 2 .9700 2 .6500 2 .6500 2 .6500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7900 2 .8000** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3600 2 .3600** — — — —

Canadian Balanced – CI SignatureSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9900 2 .9900 2 .9900 2 .6800 2 .6800 2 .6800**Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7800 2 .7700** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3400 2 .3600** — — — —

Balanced – Ethical Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9500 2 .9500 2 .9600 2 .6800 2 .6800 2 .6800**Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7900 2 .8700** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3600 2 .3600** — — — —

Income and Growth – CI SignatureSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0500 3 .0700 3 .0700 2 .7500** — —Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8500 2 .8400** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3200 2 .4700** — — — —

Growth and Income – Northwest Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6400 3 .6400 3 .6400 3 .2200 3 .2200 3 .2200Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9400 2 .9400 2 .9400 2 .6500 2 .6500 2 .6500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8700 2 .8600** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4100 2 .4100** — — — —

Global Growth – Northwest Select Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8500 3 .8500 3 .8600 3 .4300 3 .4300 3 .4300Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1200 3 .1200 3 .1200 2 .8000 2 .8000 2 .8000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9800 3 .0200** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5900 2 .5900** — — — —

Global Balanced – Jarislowsky Fraser Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4000 3 .4000 3 .4000 3 .0000 3 .0000 3 .0000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8500 2 .8600 2 .8600 2 .5500 2 .5500 2 .5500

Canadian Asset Allocation – CI CambridgeSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8900 2 .9100 2 .9500 2 .6500** — —Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6800 2 .6900** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3000 2 .3000** — — — —

Growth – QuotentialSeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6100 3 .6200 3 .6100 3 .2000 3 .2000 3 .2000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2200 3 .2100 3 .2100 2 .8500 2 .8500 2 .8500



June 30 2015

December 31 2014

December 31 2013

December 31 2012

December 31 2011

December 31 2010

% % % % % %Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9200 2 .9300** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4700 2 .4700** — — — —

Global High Income – Multi-managers Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0600 3 .0600 3 .0700 2 .7000 2 .7000 2 .7000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7500 2 .7500 2 .7500 2 .4500 2 .4500 2 .4500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7000 2 .7800** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3600 2 .3600** — — — —

Canadian EquityDividend Income – Bissett


Canadian Dividend – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2500 3 .2500 3 .2500 2 .9200 2 .9200 2 .9200Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6000 2 .6000 2 .6100 2 .3500 2 .3500 2 .3500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4400 2 .4400 2 .4400 2 .2000 2 .2000 2 .2000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6200 2 .6300** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2400 2 .2400** — — — —

Canadian Dividend – NorthwestSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0800 3 .0800 3 .0900 2 .7000** — —Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8500 2 .9000** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4100 2 .4100** — — — —

Canadian Equity – Fidelity True North®


Canadian Equity – BissettSeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5900 3 .5900 3 .5900 3 .2000 3 .2000 3 .2000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9700 2 .9800 2 .9800 2 .7000 2 .7000 2 .7000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7900 2 .8300** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4100 2 .4100** — — — —

Canadian Equity – Fiera Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8200 3 .8200 3 .8200 3 .4200 3 .4200 3 .4200Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1800 3 .1800 3 .1700 2 .8500 2 .8500 2 .8500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5400 2 .5400 2 .5400 2 .3000 2 .3000 2 .3000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6700 2 .6700** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2400 2 .2400** — — — —Series IGP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1700 2 .2200** — — — —

Canadian Equity – Jarislowsky Fraser Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5800 3 .5900 3 .5900 3 .2000 3 .2000 3 .2000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9100 2 .9200 2 .9100 2 .6000 2 .6000 2 .6000

Specialty Equity – Northwest Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8300 3 .8300 3 .8300 3 .4000 3 .4000 3 .4000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2700 3 .2800 3 .2900 2 .9000 2 .9000 2 .9000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2100 3 .2400** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7600 2 .7600** — — — —

Small Cap – BissettSeries 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7400 3 .7500 3 .7500 3 .3700 3 .3700 3 .3700Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1300 3 .1300 3 .1300 2 .8500 2 .8500 2 .8500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1200 3 .1500** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5600 2 .7600** — — — —


June 30 2015

December 31 2014

December 31 2013

December 31 2012

December 31 2011

December 31 2010

% % % % % %Foreign EquityAmerican Equity – MFS***


American Equity Value – DesjardinsSeries 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8100 3 .8200 3 .8200 3 .4100 3 .4100 3 .4100Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2300 3 .2400 3 .2400 2 .9000 2 .9000 2 .9000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0600 3 .0700 3 .0800 2 .7500 2 .7500 2 .7500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7900 2 .7600** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2500 2 .4100** — — — —

Global Dividend – DesjardinsSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7900 2 .7800 2 .9000 2 .5500** — —Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8300 2 .8600** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4700 2 .4700** — — — —

Global Equity – MFS***Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3900 3 .3900 3 .4700 3 .0500 3 .0500 3 .0500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9200 2 .9200 2 .9200 2 .6000 2 .6000 2 .6000Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9500 3 .0000** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5300 2 .5300** — — — —

Global – Fidelity Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7600 3 .7600 3 .7700 3 .4000 3 .4000 3 .4000Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2700 3 .2700 3 .2800 2 .9500 2 .9500 2 .9500

International Equity – MFS***Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8300 3 .8500 3 .8500 3 .5000 3 .5000 3 .5000Series 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6400 3 .6500 3 .6500 3 .2500 3 .2500 3 .2500Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7600 2 .7600 2 .7700 2 .4500 2 .4500 2 .4500Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0500 3 .0300** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5900 2 .5900** — — — —

International Equity Growth – DesjardinsSeries 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1100 3 .1000 3 .2200 2 .8000** — —Series 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9200 2 .9400** — — — —Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5300 2 .5300** — — — —

* Starting in 2013, management expense ratios include all applicable sales taxes (sales taxes not included before 2013) .** Annualized . *** The management expense ratios for these Funds include underlying fund managers’ fees, ranging from 0 .01 to 0 .05% .

6. RELATED PARTY TRANSACTIONSThe Funds pay management fees to the Company, which are presented in the Statement of Comprehensive Income . Those fees are calculated on a daily basis with the net asset value of the Fund and paid monthly at the annual rate specified in Note 5 .Some Funds have investments in underlying funds from related parties .As at June 30, 2015 and December 31, 2014, the Company had the following seed capital investments:

June 30, 2015 December 31, 2014$ $

Conservative – Multi-managers 141,426 139,434 Moderate – Multi-managers 169,539 166,098 Balanced – Multi-managers 197,576 192,131 Growth – Multi-managers 227,983 220,331 Maximum Growth – Multi-managers 256,239 245,692



June 30, 2015 December 31, 2014$ $

Money Market 54,224 54,250 Income – Beutel Goodman 31,786 31,814 Income – Fiera 41,734 41,425 Diversified Income – Quotential 30,213 29,420 Balanced Income – Quotential 27,767 26,440 Canadian Balanced – Fidelity 37,472 35,477 Canadian Balanced – Fiera 39,780 38,354 Canadian Balanced – Bissett 130,110 129,086 Balanced Growth – Quotential 26,002 24,518 Canadian Balanced – CI Signature 231,244 227,133 Balanced – Ethical 186,804 184,848 Income and Growth – CI Signature 217,407 212,195 Growth and Income – Northwest 266,785 259,529 Global Growth – Northwest Select 30,128 28,721 Canadian Asset Allocation – CI Cambridge 232,039 223,803 Growth – Quotential 24,740 23,032 Global High Income – Multi-managers 278,598 278,126 Dividend Income – Bissett 44,515 45,911 Canadian Dividend – Fiera 38,934 40,888 Canadian Dividend – Northwest 240,966 242,009 Canadian Equity – Fidelity True North ® 157,017 155,445 Canadian Equity – Bissett 44,398 45,719 Canadian Equity – Fiera 84,215 81,710 Specialty Equity – Northwest 285,959 284,620 Small Cap – Bissett 68,672 70,727 American Equity – MFS 25,725 23,878 American Equity Value – Desjardins 763,208 718,756 Global Dividend – Desjardins 260,242 250,239 Global Equity – MFS 226,428 205,012 International Equity – MFS 26,873 23,122 International Equity Growth – Desjardins 276,185 244,116

The related parties transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties .

7. FINANCIAL INSTRUMENTS DISCLOSURES

DFS Preliminary Information The net assets of the DFS Guaranteed Investment Funds are held by the Company on behalf of all Contract Owners . These Funds are not separate legal entities . The Contract Owners do not own any of the assets of the Funds nor own an interest in the Funds . However, the financial instrument risks resulting from the Funds are assumed by the Contract Owners . The segregated fund’s value may increase or decrease according to market fluctuations .Moreover, the Funds are offered with a deposit guarantee of 75 to 100% that protects the deposits until specific maturity dates .For the Fund of funds, details regarding the top holdings of the underlying fund(s) are shown in the appendix of the Schedule of Investment Portfolio .

Hierarchy of Financial Instruments at Fair ValueThe fair value measurement of financial instruments is determined using the following three levels of the fair value hierarchy:• Level 1 – Measurement based on quoted prices (unadjusted) in active markets for identical assets or liabilities;• Level 2 – Valuation techniques based primarily on observable market data;• Level 3 – Valuation techniques not based primarily on observable market data .If inputs of different levels are used to measure the fair value of an asset or liability, the classification within the hierarchy is based on the lowest level input that is significant to the fair value measurement .


Measurement MonitoringThe Company is responsible for establishing the fair value measurements included in the Funds’ financial statements, including Level 3 measurements . The Company obtains prices from a pricing agency, monitors and analyzes these prices on a daily basis . A measurement monitoring committee established by the Company ensures that appropriate operating procedures and a proper monitoring structure are in place and followed . Monthly monitoring reports are prepared and sent to each member for approval . The measurement monitoring committee verifies the measurements on a monthly basis . On a quarterly basis, this committee examines and approves the Level 3 measurements after obtaining confirmation of the measurements from each portfolio manager, as needed . The committee signs off on any adjustments made to prices or estimates provided by the pricing agency .

Classification within the Fair Value Hierarchy A change in the fair value measurement method could result in a transfer between levels . The Funds’ policy is to record the impacts of transfers between levels on the date of the event or change in circumstances behind the transfer .The following types of investments may be classified Level 3 if their prices are no longer based on observable inputs .

a) Money Market SecuritiesMoney market securities primarily include public sector and corporate securities, which are valued using models with inputs including interest rate curves, credit spreads and volatilities . The inputs that are significant to valuation are generally observable . Public sector money market securities guaranteed by the federal and provincial government have been classified as Level 1 . Other money market securities have been classified as Level 2 .

b) EquitiesEquities are classified as Level 1 when the security is actively traded and a reliable price is observable . Certain equities do not trade frequently and therefore observable prices may not be available . In such cases, fair value is determined using observable market data and the fair value is classified as Level 2, unless the determination of fair value requires significant unobservable data, in which case the measurement is classified as Level 3 . Unlisted warrants are generally classified as Level 2 .

c) Index-Based InvestmentsIndex-based Investments are classified as Level 1 when the security is actively traded and a reliable price is observable .

d) BondsPublic sector bonds guaranteed by the federal and provincial government are classified as Level 1 . Corporate bonds, which are valued using models with inputs including interest rate curves, credit spreads and volatilities are usually classified as Level 2 .

e) Mortgage-backed Securities and Asset-backed SecuritiesMortgage-backed securities and asset-backed securities consist primarily of corporate securities, which are valued using models with inputs including interest rate curves, credit spreads and volatilities . Since the inputs that are significant to valuation are generally observable, mortgage-backed securities and asset-backed securities are usually classified as Level 2 .

f) Investment FundsPublic investment funds are classified as Level 1 when their prospectus is unrestricted and their price is reliable and observable . Since some investment funds are not public, their price is determined using observable market data and fair value is classified as Level 2, unless the measurement of fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3 .

g) Derivative Financial InstrumentsDerivative instruments consist of foreign currency forward contracts for which counterparty credit spreads are observable and reliable or for which the credit-related inputs are determined to be significant to fair value, are classified as Level 2 .Detailed information concerning the fair value hierarchy of each Fund is available in their respective “Notes to the Financial Statements – Specific Information“ . For securities classified as Level 3, the valuation techniques and assumptions are also presented in their respective “Notes to the Financial Statements – Specific Information“ .

Management of Risks Arising from Financial Instruments During the course of their activities, the Funds are exposed to a variety of risks associated with financial instruments such as market risk (including currency risk, interest rate risk and price risk), concentration risk, credit risk and liquidity risk . The overall strategy of the Funds’ risk management focuses on the unpredictability of financial markets and optimizes the Funds’ financial performance, in accordance with the risk level established for the Fund . Most investments involve a risk of loss .For the purpose of the financial statements, certain risks detailed in the Contract and Information Folder are associated with other risks . The market risk, the special equity risk and the sovereign risk are presented under price risk . The credit risk and the derivatives risk are presented under credit risk .In accordance with the Funds’ investment policy, the Company monitors the Funds’ risks on a quarterly basis .

Market RiskMarket risk is the risk that the fair value or cash flows associated with a financial instrument will fluctuate because of a change in the relevant risk variables, such as interest rates and equity prices . The Funds’ market risk is managed through diversification of the investment portfolio’s exposure ratio . The return on investments held by the Funds is monitored by the Company on a monthly basis and reviewed by the investment committee on a quarterly basis .



Currency RiskCurrency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in foreign exchange rates . Currency risk is composed of monetary items (usually including cash, receivable amounts in foreign currency, and investments in fixed-income and money market securities) and non-monetary items (usually including investments in equities and investment funds) . The non-monetary assets are classified according to the currency of which the security was purchased .The Funds are exposed to the currency risk in holding assets and/or liabilities denominated in currencies other than the Canadian dollar, the Funds’ functional currency, as the value of the securities denominated in other currencies will fluctuate according to the prevailing exchange rates . The Funds may enter into foreign currency forward contracts to reduce their exposure to currency risk .The Funds’ exposure to currency risk is shown based on the carrying value of financial assets and financial liabilities (including the notional amount of foreign currency forward contracts and foreign currency futures, if any) . If the Canadian dollar decreases in relation to foreign currencies, the value of foreign investments increases . Conversely, if the value of the Canadian dollar increases, the value of foreign investments decreases .

Interest Rate RiskInterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates .Interest rate risk occurs when an investment fund invests in interest-bearing financial instruments . Generally, the value of these securities increases if interest rates decrease, and decreases if interest rates increase . The Company manages this risk by calculating and monitoring the average effective duration of the portfolio of these securities . The Funds hold a limited amount of cash subject to variable interest rates, which expose them to cash flow interest rate risk .

Price RiskPrice risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices, other than those arising from currency risk or interest rate risk .The Company manages this risk by carefully selecting securities and other financial instruments, in accordance with defined limits . The maximum risk resulting from financial instruments is determined by the fair value or contract value of the financial instruments . The Funds’ overall market positions are monitored on a monthly basis by the Company and reviewed on a quarterly basis by the investment committee . The Funds’ financial instruments are exposed to price risk arising from uncertainties about the future prices of instruments .

Concentration RiskConcentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location or industry sector . For Funds with an international investment strategy, the concentration by geographic location will be presented according to, among other things, the country of incorporation or region . For Funds with a domestic investment strategy, the concentration by industry sector will be presented according to, among other things, their investments in finance, healthcare or energy sectors, etc .

Credit RiskCredit risk is the risk that the financial instrument counterparty will be unable to pay the full amount maturity .

Financial Instrument TransactionsThe Funds are exposed to credit risk . The Funds’ and counterparty’s respective credit risk are taken into account when determining the fair value of financial assets and liabilities . Transactions are settled or paid on delivery using approved brokers . The risk of default is considered limited as delivery of the securities sold is made once the broker has received payment . Payment is made on a purchase once the securities have been received by the broker . The trade will fail if either party fails to meet its obligations . However, there are risks involved in dealing with custodians or prime brokers who settle trades and, in rare circumstances, the securities and other assets deposited with the custodian or broker may be exposed to credit risk with regard to such parties . In addition, there may be practical problems or time delays associated with enforcing the Funds’ rights to their assets in the case of an insolvency of any such party .Derivative financial instruments are financial contracts whose value depends on underlying assets, including interest rates and foreign exchange rates . The vast majority of derivative financial instruments is negotiated by mutual agreement between the Funds and its counterparties, and include foreign currency forward contracts, swaps and options . Other transactions are carried out as part of trades and mainly consist of futures contracts .

Securities Lending and Repurchase TransactionsSecurities lending and repurchase transactions expose the Funds to credit risk . These transactions are governed by Investment Industry Regulatory Organization of Canada participation agreements . The Funds also use netting agreements with counterparties to mitigate credit risk and require a percentage of collateralization (a pledge) on these transactions . The Funds only accept pledges from counterparties that comply with the eligibility criteria defined in their policies . These criteria promote quick realization, if necessary, of collateral in case of default . The collateral received and given by the Funds are mainly cash and government securities . Further information on assets pledged and received as collateral is presented in the “Notes to the Financial Statements – Specific Information“ pertaining to each Fund .


Liquidity RiskLiquidity risk is the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities .The Funds are exposed to daily cash redemptions of units . Most of their assets are therefore invested in liquid investments (i .e . investments that are traded in an active market and that can be readily disposed of) . Some Funds may invest in derivatives, debt securities and unlisted equity investments that are not traded in an active market . As a result, some Funds may not be able to quickly liquidate their investments at amounts approximating their fair values, or be able to respond to specific effects such as deterioration in the creditworthiness of any particular issuer . Units attributable to Contract Owners are redeemable on demand . However, the Company does not expect that the contractual maturity disclosed will be representative of the actual cash outflows, as Contract Owners of the instruments typically retain them for a longer period .The majority of the remaining liabilities are due within the next 3 months . Balances due within 12 months equal their carrying balances as the impact of discounting is not significant .

Management of Risks from Units Attributable to Contract OwnersUnits attributed and outstanding are considered as the Funds’ capital . The Funds are not subject to specific capital requirements on the premiums and withdrawals, other than certain minimum deposit requirements . Contract Owners are entitled to require payment of the net asset value per unit for all or any of the units they hold by giving a written notice to the Company . Units attributable to Contract Owners are redeemable for cash equal to a pro rata share of the Funds’ net asset value . Additional InformationFor further information regarding the hierarchy of financial instruments at fair value measurement and risk exposure of each Fund, please refer to the “Notes to the Financial Statements – Specific Information“ pertaining to each Fund . Details on risks and various documents on underlying funds (detailed description of each Fund’s investment policy and, where applicable, the investment policy and/or prospectus and financial statements of the underlying fund(s)) are available upon request by writing to the Company at its address:1 Complexe DesjardinsP .O . Box 9000Montreal, QCH5B 1H5

8. EVENTS SUBSEQUENT TO THE DATE OF THE STATEMENT OF FINANCIAL POSITIONFunds’ Name changesIn October 2015, the Company will make modifications to the Fund names for the following Funds:

OLD FUND NAME NEW FUND NAMEDFS GIF – Diversified Income – Quotential DFS GIF – Diversified Income – Franklin QuotentialDFS GIF – Balanced Income – Quotential DFS GIF – Balanced Income – Franklin QuotentialDFS GIF – Canadian Balanced – Bissett DFS GIF – Canadian Balanced – Franklin BissettDFS GIF – Balanced Growth – Quotential DFS GIF – Balanced Growth – Franklin QuotentialDFS GIF – Growth – Quotential DFS GIF – Growth – Franklin QuotentialDFS GIF – Dividend Income – Bissett DFS GIF – Dividend Income – Franklin BissettDFS GIF – Canadian Equity – Bissett DFS GIF – Canadian Equity – Franklin BissettDFS GIF – Small Cap – Bissett DFS GIF – Small Cap – Franklin BissettDFS GIF – Income – Fiera DFS GIF – Income – Fiera CapitalDFS GIF – Canadian Balanced – Fiera DFS GIF – Canadian Balanced – Fiera CapitalDFS GIF – Canadian Equity – Fiera DFS GIF – Canadian Equity – Fiera CapitalDFS GIF – Growth and Income – Northwest DFS GIF – Growth and Income – NEI NorthwestDFS GIF – Canadian Dividend – Northwest DFS GIF – Canadian Dividend – NEI NorthwestDFS GIF – Specialty Equity – Northwest DFS GIF – Specialty Equity – NEI NorthwestDFS GIF – Global Growth – Northwest Select DFS GIF – Global Growth – NEI Select



Launch of new Funds in Series 5, 6 and 7 In October 2015, the following Funds will be added to the series listed below:

FUND NAME NEW SERIESDFS GIF – Canadian Equity – Jarislowsky Fraser Series 6 and 7DFS GIF – Global Balanced – Jarislowsky Fraser Series 6 and 7DFS GIF – Conservative – Multi-managers Series 5DFS GIF – Moderate – Multi-managers Series 5DFS GIF – Balanced – Multi-managers Series 5DFS GIF – Growth – Multi-managers Series 5DFS GIF – Maximum Growth – Multi-managers Series 5

Closing of FundsIn October 2015, the Company will close the following Funds:

FUND NAME

DFS GIF – Canadian Dividend – FieraDFS GIF – Income – Beutel GoodmanDFS GIF – Global High Income – Multi-managersDFS GIF – Balanced – EthicalDFS GIF – Global – Fidelity

On July 7, 2015, the Company ceased to accept additional deposits for these Funds .


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DFS Guaranteed Investment Funds are established by Desjardins Financial Security Life Assurance Company.



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Financial Information as of June 30, 2015

2015 Semi-Annual Report

desjardinslifeinsurance.comThis Document is also available on our website:

JUNE 2015

Thank you.Thank you for choosing the strength and stability of a company specialized in providing individual insurance and retirement savings products to over five million Canadians, every day, to ensure their financial security.

Thank you for also choosing Desjardins Group, the largest cooperative financial group in Canada, whose financial stability is recognized by the following credit ratings which are comparable, if not superior to those of the five largest Canadian banks and insurance companies:

• Standard and Poor’s A+ • Moody’s Aa2 • Dominion Bond Rating Service AA • Fitch AA-

The Contract and Information Folder contains important information on the DFS Guaranteed Investment Funds. Please read it carefully before investing. DFS Guaranteed Investment Funds is a registered trademark owned by Desjardins Financial Security Life Assurance Company. DFS Guaranteed Investment Funds are established by Desjardins Financial Security Life Assurance Company.

DFS stands for Desjardins Financial Security.


This document is printed on Rolland Enviro paper.

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thank you. - desjardins life insurance · 2015. 11. 20. · montreal, qc h5b 1h5 or send an email...

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