Scotia Private Pools Pinnacle Portfolios Semi-AnnualReport...Scotia Private Short Term Income Pool (Unaudited) STATEMENTS OF FINANCIAL POSITION As at June 30, 2014 December 31, 2013

Scotia Private Pools™ and

Pinnacle PortfoliosSemi-Annual ReportJune 30, 2014

Money Market FundScotia Private Short Term Income Pool

Bond FundsScotia Private Income PoolScotia Private High Yield Income PoolScotia Private American Core-Plus Bond Pool

Balanced FundScotia Private Strategic Balanced Pool

Canadian Equity FundsScotia Private Canadian Value PoolScotia Private Canadian Mid Cap PoolScotia Private Canadian Growth PoolScotia Private Canadian Small Cap Pool

Foreign Equity FundsScotia Private U.S. Value PoolScotia Private U.S. Mid Cap Value PoolScotia Private U.S. Mid Cap Growth PoolScotia Private U.S. Large Cap Growth PoolScotia Private International Equity PoolScotia Private International Small to Mid Cap Value PoolScotia Private Emerging Markets PoolScotia Private Global Equity PoolScotia Private Global Real Estate Pool

Pinnacle PortfoliosPinnacle Income PortfolioPinnacle Balanced PortfolioPinnacle Growth Portfolio

Financial Statements

Money Market Fund3 • Scotia Private Short Term Income Pool

Bond Funds7 • Scotia Private Income Pool14 • Scotia Private High Yield Income Pool23 • Scotia Private American Core-Plus Bond Pool

Balanced Fund37 • Scotia Private Strategic Balanced Pool

Canadian Equity Funds46 • Scotia Private Canadian Value Pool51 • Scotia Private Canadian Mid Cap Pool57 • Scotia Private Canadian Growth Pool62 • Scotia Private Canadian Small Cap Pool

Foreign Equity Funds67 • Scotia Private U.S. Value Pool73 • Scotia Private U.S. Mid Cap Value Pool79 • Scotia Private U.S. Mid Cap Growth Pool85 • Scotia Private U.S. Large Cap Growth Pool91 • Scotia Private International Equity Pool98 • Scotia Private International Small to Mid Cap Value Pool106 • Scotia Private Emerging Markets Pool114 • Scotia Private Global Equity Pool120 • Scotia Private Global Real Estate Pool

The Pinnacle Portfolios128 • Pinnacle Income Portfolio132 • Pinnacle Balanced Portfolio136 • Pinnacle Growth Portfolio

140 Notes to the Financial Statements

150 Management’s Responsibility for Financial Reporting

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Scotia Private Short Term Income Pool (Unaudited)

STATEMENTS OF FINANCIAL POSITIONAs at

June 30,2014

December 31,2013

January 1,2013

ASSETSCurrent assetsInvestments

Non-derivative financial assets $4,346,081 $6,155,880 $8,748,759Cash 89,540 56,626 35,850Accrued investment income 5,897 198 287

4,441,518 6,212,704 8,784,896

LIABILITIESCurrent liabilitiesDistributions payable 42 12 15Accrued expenses 1,985 – –

2,027 12 15

Net Assets attributable to holders ofredeemable units $4,439,491 $6,212,692 $8,784,881

NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS PER SERIES

Pinnacle Series Units $4,207,095 $6,129,532 $8,712,213Series F Units $ 232,396 $ 83,160 $ 72,668

UNITS OUTSTANDINGPinnacle Series Units 420,709 612,953 871,221Series F Units 23,240 8,316 7,267

NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS PER UNIT

Pinnacle Series Units $ 10.00 $ 10.00 $ 10.00Series F Units $ 10.00 $ 10.00 $ 10.00

STATEMENTS OF COMPREHENSIVE INCOMEFor the six month periods ended June 30,

2014 2013

INCOMENet gain (loss) on investments (note 2)

Interest for distribution purposes $ 28,839 $ 39,589

Net gain (loss) on investments 28,839 39,589

Total income (loss) 28,839 39,589

EXPENSESManagement fees (note 5) 252 190Harmonized Sales Tax/Goods and Services Tax 1,861 2,185Audit fees 57 127Independent Review Committee fees 8 20Custodian fees 846 537Filing fees 9,018 9,675Legal fees 43 61Unitholder reporting costs 2,528 4,189Unitholder administration and service fees 13,004 15,581

Total expenses 27,617 32,565Absorbed expenses (14,079) (14,501)

Net expenses 13,538 18,064

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 15,301 $ 21,525

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES

Pinnacle Series Units $ 14,991 $ 21,303Series F Units $ 310 $ 222

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT*

Pinnacle Series Units $ 0.03 $ 0.03Series F Units $ 0.03 $ 0.03

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 478,366 644,785Series F Units 10,065 7,566

* The increase (decrease) in net assets attributable to holders of redeemable units per unitis calculated by dividing the increase (decrease) in net assets attributable to holders ofredeemable units from operations per series by the weighted average units per series.

STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the six month periods ended June 30,

2014 2013

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD

Pinnacle Series Units $ 6,129,532 $ 8,712,213Series F Units 83,160 72,668

6,212,692 8,784,881

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS

Pinnacle Series Units 14,991 21,303Series F Units 310 222

15,301 21,525

DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income

Pinnacle Series Units (14,990) (21,308)Series F Units (310) (217)

(15,300) (21,525)

REDEEMABLE UNIT TRANSACTIONSProceeds from issue

Pinnacle Series Units 913,002 2,425,926Series F Units 151,298 6,000

Reinvested distributionsPinnacle Series Units 14,990 21,255Series F Units 269 217

Payments on redemptionPinnacle Series Units (2,850,429) (6,702,796)Series F Units (2,331) (677)

(1,773,201) (4,250,075)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS

Pinnacle Series Units (1,922,437) (4,255,620)Series F Units 149,236 5,545

(1,773,201) (4,250,075)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD

Pinnacle Series Units 4,207,095 4,456,593Series F Units 232,396 78,213

$ 4,439,491 $ 4,534,806

STATEMENTS OF CASH FLOWSFor the six month periods ended June 30,

2014 2013

CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of

redeemable units $ 15,301 $ 21,525Adjustments For:

Purchases of non-derivative financial assets (9,094,235) (15,274,346)Proceeds from sale of non-derivative financial assets 10,898,278 19,557,506Accrued investment income 57 (3)Accrued expenses 1,985 1,981

Net cash provided by (used in) operating activities 1,821,386 4,306,663

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 1,064,294 2,431,926Amounts paid on redemption of redeemable units (2,852,760) (6,703,473)Distributions to unitholders of redeemable units (6) (63)

Net cash provided by (used in) financing activities (1,788,472) (4,271,610)Net increase (decrease) in cash 32,914 35,053Cash at beginning of period 56,626 35,850

CASH AT END OF PERIOD $ 89,540 $ 70,903

Interest received(1) 31,865 46,134

(1) Classified as operating items.

Portfolio Advisor: 1832 Asset Management L.P.

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

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Scotia Private Short Term Income Pool (Unaudited – Continued)

SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2014FaceValue ($) Issuer

AverageCost ($)

CarryingValue ($)

MONEY MARKET INSTRUMENTS – 97.9%Treasury Bills – 15.5%150,000 Manitoba Hydro

0.00% due Aug. 13, 2014 149,748 149,825540,000 Province of Ontario

0.00% due Jul. 2, 2014 539,568 539,986

689,316 689,811

Promissory Notes – 7.9%350,000 Province of British Columbia

0.00% due from Jul. 7, 2014 to Dec 17, 2014 349,150 349,943

Bearers’ Deposit Notes – 2.2%100,000 Manulife Bank of Canada

0.00% due Apr. 28, 2015 98,605 98,837

Commercial Paper – 14.1%100,000 BCE Inc.

0.00% due Jul. 3, 2014 99,729 99,994125,000 Daimler Canada Finance Inc.

0.00% due Jan. 9, 2015 123,134 124,016100,000 Enbridge Inc.

0.00% due Jul. 11, 2014 99,790 99,967100,000 Honda Canada Finance Inc.

0.00% due Jul. 11, 2014 99,956 99,971100,000 TELUS Corporation

0.00% due Aug. 22, 2014 99,819 99,832100,000 Volkswagen AG

0.00% due Aug. 8, 2014 99,819 99,850

622,247 623,630

Short Term Bonds – 58.2%100,000 American Express Company (Floating Rate)

4.85% due Oct. 3, 2014 100,856 100,856150,000 Bank of Montreal (Floating Rate)

1.35% due Jun. 19, 2015 150,000 150,000150,000 Canadian Imperial Bank of Commerce (Floating Rate)

2.19% due Jan. 16, 2015 150,533 150,533100,000 Fortis, Inc. (Floating Rate)

5.48% due Nov. 28, 2014 101,707 101,707100,000 GE Capital Canada Funding Company (Floating Rate)

4.65% due Feb. 11, 2015 102,024 102,024100,000 Golden Credit Card Trust (Floating Rate)

3.82% due May 15, 2015 102,190 102,190120,000 HSBC Bank USA NA (Floating Rate)

3.86% due May 21, 2015 122,567 122,567100,000 Hydro One Inc. (Floating Rate)

3.13% due Nov. 19, 2014 100,700 100,700200,000 Hydro-Quebec Interest Strip (Floating Rate)

0.00% due Aug. 15, 2014 199,719 199,719150,000 National Bank of Canada (Floating Rate)

1.41% due Sep. 11, 2014 150,000 150,000450,000 Ontario Hydro Residual Strip (Floating Rate)

0.00% due Oct. 17, 2014 448,597 448,597606,000 Province of New Foundland Coupon Strip

(Floating Rate)0.00% due Oct. 17, 2014 604,106 604,106

150,000 Royal Bank of Canada (Floating Rate)1.39% due Sep. 19, 2014 150,000 150,000

FaceValue ($) Issuer

AverageCost ($)

CarryingValue ($)

MONEY MARKET INSTRUMENTS (cont’d)Short Term Bonds (cont’d)100,000 Wells Fargo Company (Floating Rate)

3.97% due Nov. 3, 2014 100,861 100,861

2,583,860 2,583,860

TOTAL INVESTMENT PORTFOLIO 4,343,178 4,346,081

OTHER ASSETS, LESS LIABILITIES – 2.1% 93,410

NET ASSETS – 100.0% 4,439,491

Instruments with a 0.00% stated interest rate are purchased at a discount to face value. Thediscount represents the implied effective interest.



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FUND SPECIFIC NOTESFor the periods indicated in Note 1.

1. The Fund (note 1)i) The Fund’s investment objective is to preserve investment capital while providing interest income and maintaining liquidity by

investing primarily in highly liquid, senior investment grade money market instruments (i.e. federal and provincial treasurybills and bond) and bankers acceptance.

2. Transition to IFRS (note 13)There were no significant adjustments between IFRS and Canadian GAAP impacting the Fund.

3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk

The table below summarizes the Fund’s exposure to interest rate risk by the remaining term to maturity of the Fund’s portfolio ofbond and debenture instruments.

Interest Rate Exposure* June 30, 2014 December 31, 2013 January 1, 2013

Less than 1 year $4,346,081 $6,155,880 $8,748,759

1-3 years – –

3-5 years – – –

5-10 years – – –

> 10 years – – –

Total $4,346,081 $6,155,880 $8,748,759

* Earlier of maturity date or interest reset date. Excludes cash.

ii) Credit risk

The table below summarizes the credit ratings of the bond and debenture instruments, excluding cash and money marketinstruments but including preferred shares, held by the Fund.

June 30, 2014 December 31, 2013 January 1, 2013

Percentage ofTotal Money Market

Instruments (%)Percentage ofNet Assets (%)





Short-Term Rating

R1-High 8.1 7.9 14.1 14.0 21.7 21.6

R1-Middle 22.7 22.3 15.6 15.4 30.8 30.7

R1– Low 9.7 9.5 9.0 8.9 14.8 14.8

Bond Credit Rating

A– to AAA+ 59.5 58.2 61.3 60.8 32.7 32.5

Total 100.0 97.9 100.0 99.1 100.0 99.6

iii) Liquidity risk

The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.


On demandLess than3 months On demand

Less than3 months On demand

Less than3 months

Accounts payable and accrued liabilities $ – $2,027 $ – $12 $ – $15

Redeemable units 4,439,491 – 6,212,692 – 8,784,881 –

$4,439,491 $2,027 $6,212,692 $12 $8,784,881 $15

Redeemable units are redeemable on demand at the holder’s option. However, the Manager does not expect that the contractualmaturity disclosed in the table above will be representative of the actual cash outflows, as holders of these instruments typicallyretain them for a longer term. M

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iv) Concentration risk

Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location,asset type, industry sector or counterparty type. The table below is a summary of the Fund’s concentration risk.

Percentage of Net Assets (%)


Treasury Bills 15.5 13.3 20.4

Promissory Notes 7.9 3.5 26.5

Bankers’ Acceptance – 12.4 3.4

Bearers’ Deposit Notes 2.2 2.4 1.4

Commercial Paper 14.1 6.7 15.3

Short-Term Bonds 58.2 60.8 32.5

v) Fair value classification (note 2)

The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at June 30,2014, December 31, 2013 and January 1, 2013.

June 30, 2014 Level 1 Level 2 Level 3 Total

Money Market Instruments $ – $4,346,081 $ – $4,346,081

December 31, 2013 Level 1 Level 2 Level 3 Total


January 1, 2013 Level 1 Level 2 Level 3 Total


Transfers Between LevelsDuring the period ended June 30, 2014, December 31, 2013 and January 1, 2013, there were no transfers between Level 1 and Level 2.

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Scotia Private Income Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $312,514,393 $291,921,877 $297,436,458Cash 3,781,502 304,293 105,090Accrued investment income 2,086,363 1,774,977 1,618,879Subscriptions receivable 656,727 177,761 21,602

319,038,985 294,178,908 299,182,029

LIABILITIESCurrent liabilitiesPayable for securities purchased – 2,913,854 –Distributions payable 11,623 – –Redemptions payable 344,725 771,294 109,899Accrued expenses 18,580 – –

374,928 3,685,148 109,899


NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES

Pinnacle Series Units $283,571,723 $256,065,876 $251,509,501Series F Units $ 3,189,181 $ 4,957,890 $ 19,368,089Series I Units $ 31,903,153 $ 29,469,994 $ 28,194,540

UNITS OUTSTANDINGPinnacle Series Units 26,449,002 24,308,721 21,510,621Series F Units 288,846 458,770 1,607,255Series I Units 2,965,539 2,787,803 2,405,181

NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT

Pinnacle Series Units $ 10.72 $ 10.53 $ 11.69Series F Units $ 11.04 $ 10.81 $ 12.05Series I Units $ 10.76 $ 10.57 $ 11.72


2014 2013


Interest for distribution purposes $ 4,963,970 $ 5,002,074Net realized gain (loss) on non-derivative financial assets (2,473,174) 17,316,131Change in unrealized appreciation (depreciation) of non-

derivative financial assets 8,149,978 (25,419,634)

Net gain (loss) on investments 10,640,774 (3,101,429)Securities lending 16,064 25,155Other income 1,864 190

Total income (loss) 10,658,702 (3,076,084)

EXPENSESManagement fees (note 5) 12,600 46,115Harmonized Sales Tax/Goods and Services Tax 8,452 11,681Audit fees 3,396 3,847Independent Review Committee fees 488 899Custodian fees 4,350 4,275Filing fees 10,421 10,263Legal fees 2,757 2,926Unitholder reporting costs 5,349 7,366Unitholder administration and service fees 60,501 68,885

Total expenses 108,314 156,257Absorbed expenses (1,701) –

Net expenses 106,613 156,257

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $10,552,089 $ (3,232,341)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES

Pinnacle Series Units $ 9,353,433 $ (2,835,553)Series F Units $ 130,626 $ (83,451)Series I Units $ 1,068,030 $ (313,337)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*

Pinnacle Series Units $ 0.37 $ (0.13)Series F Units $ 0.40 $ 0.07Series I Units $ 0.37 $ 0.13

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 25,479,640 21,714,643Series F Units 329,809 1,113,632Series I Units 2,884,835 2,476,893

* The increase (decrease) in net assets attributable to holders of redeemable units perunit is calculated by dividing the increase (decrease) in net assets attributable toholders of redeemable units from operations per series by the weighted average units perseries.

Portfolio Advisor: Beutel Goodman & Company Ltd.


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Scotia Private Income Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $256,065,876 $251,509,501Series F Units 4,957,890 19,368,089Series I Units 29,469,994 28,194,540

290,493,760 299,072,130


Pinnacle Series Units 9,353,433 (2,835,553)Series F Units 130,626 (83,451)Series I Units 1,068,030 (313,337)

10,552,089 (3,232,341)


Pinnacle Series Units (4,712,525) (4,682,277)Series F Units (40,532) (140,279)Series I Units (539,050) (544,512)

(5,292,107) (5,367,068)


Pinnacle Series Units 40,872,694 25,208,584Series F Units 85,311 750,142Series I Units 1,627,688 1,215,913

Reinvested distributionsPinnacle Series Units 4,691,718 4,645,284Series F Units 35,687 101,768Series I Units 539,049 544,511

Payments on redemptionPinnacle Series Units (22,699,473) (25,604,665)Series F Units (1,979,801) (12,721,393)Series I Units (262,558) (778,501)

22,910,315 (6,638,357)


Pinnacle Series Units 27,505,847 (3,268,627)Series F Units (1,768,709) (12,093,213)Series I Units 2,433,159 124,074

28,170,297 (15,237,766)


Pinnacle Series Units 283,571,723 248,240,874Series F Units 3,189,181 7,274,876Series I Units 31,903,153 28,318,614

$318,664,057 $283,834,364


2014 2013


redeemable units $ 10,552,089 $ (3,232,341)Adjustments For:

Net realized gain (loss) on sale of non-derivativefinancial assets 2,473,174 (17,316,131)

Change in unrealized appreciation (depreciation) onsale of non-derivative financial assets (8,149,978) 25,419,634

Purchases of non-derivative financial assets (157,204,176) (507,645,690)Proceeds from sale of non-derivative financial assets 139,374,609 514,632,223Accrued investment income (311,386) 4,644Accrued expenses 18,580 20,132

Net cash provided by (used in) operating activities (13,247,088) 11,882,471

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 42,106,727 27,026,535Amounts paid on redemption of redeemable units (25,368,400) (38,844,822)Distributions to unitholders of redeemable units (14,030) (52,614)

Net cash provided by (used in) financing activities 16,724,297 (11,870,901)Net increase (decrease) in cash 3,477,209 11,570Cash at beginning of period 304,293 105,090

CASH AT END OF PERIOD $ 3,781,502 $ 116,660

Interest received(1) 4,652,584 5,006,718




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AverageCost ($)

CarryingValue ($)

BOND AND DEBENTURE INSTRUMENTS – 98.1%Federal Bonds – 42.0%

Canada Housing Trust No. 18,210,000 3.15% due Jun. 15, 2015 8,491,473 8,374,291

61,305,000 2.45% due Dec. 15, 2015 62,749,880 62,488,6523,465,000 1.85% due Dec. 15, 2016 3,512,547 3,509,233

Government of Canada59,120,000 1.50% due Aug. 1, 2015 59,511,189 59,434,233

134,265,089 133,806,409

Provincial Bonds – 7.4%Province of Alberta

4,790,000 1.85% due Sep. 1, 2016 4,860,064 4,854,8001,560,000 3.50% due Jun. 1, 2031 1,566,583 1,582,4502,100,000 3.90% due Dec. 1, 2033 2,185,134 2,228,187

110,000 4.50% due Dec. 1, 2040 122,756 128,024Province of British Columbia

100,000 5.40% due Jun. 18, 2035 130,500 127,851205,000 4.95% due Jun. 18, 2040 251,187 253,38190,000 4.30% due Jun. 18, 2042 99,243 101,988

535,000 3.20% due Jun. 18, 2044 464,355 501,797Province of Manitoba

1,750,000 5.20% due Dec. 3, 2015 1,888,476 1,850,441850,000 6.30% due Mar. 5, 2031 1,077,035 1,150,192400,000 5.70% due Mar. 5, 2037 545,120 528,125615,000 4.60% due Mar. 5, 2038 703,850 710,050200,000 4.40% due Mar. 5, 2042 237,080 226,755

3,365,000 4.05% due Sep. 5, 2045 3,533,549 3,637,4824,445,000 3.15% due Sep. 5, 2052 3,914,433 4,036,645

Province of Saskatchewan300,000 4.25% due Dec. 3, 2015 317,910 313,291250,000 4.75% due Jun. 1, 2040 279,744 300,145985,000 3.90% due Jun. 2, 2045 1,018,804 1,051,963

23,195,823 23,583,567

Corporate Bonds – 48.7%Alliance Pipeline LP

174,340 5.55% due Dec. 31, 2023 174,340 193,4781,011,598 7.22% due Dec. 31, 2025 1,011,599 1,229,885

AltaGas Income Trust950,000 4.10% due Mar. 24, 2016 1,003,105 987,490

AltaGas Ltd. (callable)620,000 5.16% due Jan. 13, 2044-(Jul. 13, 2043) 619,250 675,624

AltaLink LP1,715,000 2.98% due Nov. 28, 2022 1,720,403 1,719,601

300,000 5.25% due Sep. 22, 2036 363,000 349,3532,150,000 5.38% due Mar. 26, 2040 2,703,300 2,582,5971,365,000 4.87% due Nov. 15, 2040 1,572,681 1,532,600

500,000 4.46% due Nov. 8, 2041 555,500 527,3011,205,000 3.99% due Jun. 30, 2042 1,144,697 1,178,960

500,000 4.92% due Sep. 17, 2043 549,120 566,8441,010,000 4.45% due Jul. 11, 2053 1,030,045 1,065,378

Bank of Montreal770,000 3.93% due Apr. 27, 2015 806,960 786,189

1,100,000 3.10% due Mar. 10, 2016 1,129,789 1,128,851300,000 3.49% due Jun. 10, 2016 310,470 310,617

Bank of Nova Scotia, The7,085,000 2.25% due May 8, 2015 7,177,235 7,139,2301,300,000 3.61% due Feb. 22, 2016 1,343,030 1,343,3892,800,000 2.60% due Feb. 27, 2017 2,862,975 2,857,736

Canadian Imperial Bank of Commerce100,000 3.30% due Nov. 19, 2014 102,980 100,752875,000 3.10% due Mar. 2, 2015 879,176 885,268

5,590,000 1.75% due Jun. 1, 2016 5,601,333 5,602,644Canadian Utilities Limited

600,000 5.10% due Nov. 18, 2014 635,910 608,459


AverageCost ($)

CarryingValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)

800,000 3.86% due Nov. 14, 2052 790,600 754,641CIBC Capital Trust

4,825,000 2.20% due May 22, 2015 4,885,620 4,861,2052,525,000 3.40% due Jan. 14, 2016 2,605,276 2,596,830

CU Inc.680,000 4.80% due Nov. 22, 2021 742,991 773,493625,000 5.90% due Nov. 20, 2034 796,275 781,491500,000 5.03% due Nov. 20, 2036 589,300 567,872830,000 5.58% due May 26, 2038 1,003,279 1,015,750

1,312,000 4.54% due Oct. 24, 2041 1,312,000 1,405,485975,000 3.81% due Sep. 10, 2042 977,438 925,527

1,025,000 4.72% due Mar. 9, 2043 1,129,300 1,129,4981,800,000 4.95% due Nov. 18, 2050 2,095,100 2,063,976

Duke Energy Corporation225,000 8.50% due Nov. 23, 2015 259,425 245,238

Enbridge Gas Distribution Inc.530,000 5.16% due Sep. 24, 2014 554,473 534,513

1,610,000 4.77% due Dec. 17, 2021 1,873,719 1,825,253700,000 6.90% due Nov. 15, 2032 979,700 958,397

1,000,000 6.16% due Dec. 16, 2033 1,333,880 1,296,187Enbridge Inc.

1,055,000 5.17% due May 19, 2016 1,127,405 1,121,7501,090,000 1.85% due Apr. 24, 2017 1,090,337 1,093,6661,080,000 4.57% due Mar. 11, 2044 1,087,033 1,119,5601,500,000 4.95% due Nov. 22, 2050 1,851,585 1,734,906

Enbridge Pipelines Inc.1,000,000 2.93% due Sep. 8, 2015 1,032,243 1,018,9591,740,000 2.93% due Nov. 30, 2022 1,764,984 1,735,582

550,000 6.35% due Nov. 17, 2023 668,785 688,6061,000,000 5.33% due Apr. 6, 2040 1,246,800 1,195,974

EPCOR Utilities Inc.575,000 6.75% due Mar. 22, 2016 633,075 624,375300,000 6.80% due Jun. 28, 2029 405,450 396,033

1,525,000 5.65% due Nov. 16, 2035 1,744,511 1,834,506500,000 5.75% due Nov. 24, 2039 639,050 619,128

Fortis Inc.270,000 4.25% due Dec. 9, 2041 291,128 275,875

FortisAlberta Inc.1,025,000 5.33% due Oct. 31, 2014 1,086,308 1,038,607

500,000 6.22% due Oct. 31, 2034 671,000 646,418700,000 5.40% due Apr. 21, 2036 866,560 828,766548,000 5.85% due Apr. 15, 2038 728,237 691,569500,000 5.37% due Oct. 30, 2039 622,000 597,078500,000 4.54% due Oct. 18, 2041 558,050 535,091500,000 4.80% due Oct. 27, 2050 597,600 561,149

FortisAlberta Inc. (callable)365,000 4.85% due Sep. 11, 2043-(Mar. 11, 2043) 364,599 410,118

FortisBC Energy Inc.75,000 6.95% due Sep. 21, 2029 106,275 101,383

FortisBC Inc.500,000 5.48% due Nov. 28, 2014 529,150 508,175500,000 5.00% due Nov. 24, 2050 610,750 568,952

Greater Toronto Airports Authority1,800,000 5.00% due Jun. 1, 2015 1,906,887 1,861,327

700,000 4.70% due Feb. 15, 2016 742,414 736,316Hydro One Inc.

500,000 3.13% due Nov. 19, 2014 514,188 503,5453,225,000 2.95% due Sep. 11, 2015 3,320,850 3,288,086

300,000 4.64% due Mar. 3, 2016 315,750 315,7652,205,000 3.20% due Jan. 13, 2022 2,318,892 2,272,5871,100,000 6.35% due Jan. 31, 2034 1,484,600 1,436,6521,000,000 4.89% due Mar. 13, 2037 1,159,350 1,118,7805,505,000 5.49% due Jul. 16, 2040 6,987,197 6,719,212



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AverageCost ($)

CarryingValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)2,500,000 5.00% due Oct. 19, 2046 3,068,500 2,891,041

Hydro Ottawa Holding Inc.1,600,000 4.93% due Feb. 9, 2015 1,679,800 1,634,170

Inter Pipeline Fund425,000 4.90% due Feb. 3, 2020 480,913 473,828203,000 4.97% due Feb. 2, 2021 233,044 227,587500,000 3.78% due May 30, 2022 529,500 520,037

Inter Pipeline Ltd. (callable)815,000 4.64% due May 30, 2044-(Nov. 30, 2043) 815,000 831,752

Lower Mattagami Energy Limited Partnership1,250,000 5.14% due May 18, 2041 1,451,915 1,447,9831,000,000 4.18% due Feb. 23, 2046 1,054,800 1,002,163

NAV Canada200,000 4.40% due Feb. 18, 2021 227,540 222,409500,000 7.40% due Jun. 1, 2027 732,750 699,071

NOVA Gas Transmission Ltd.1,465,000 12.20% due Feb. 28, 2016 1,872,710 1,711,106

Nova Scotia Power Inc.500,000 8.40% due Oct. 23, 2015 577,750 542,110750,000 6.95% due Aug. 25, 2033 976,775 1,027,924200,000 5.67% due Nov. 14, 2035 253,600 241,643

4,000,000 5.61% due Jun. 15, 2040 5,150,400 4,876,802480,000 4.15% due Mar. 6, 2042 467,568 475,297

Pembina Pipeline Corp.835,000 4.81% due Mar. 25, 2044 834,223 866,495

Royal Bank of Canada700,000 2.05% due Jan. 13, 2015 706,790 702,717

3,600,000 3.36% due Jan. 11, 2016 3,714,152 3,701,0111,000,000 3.03% due Jul. 26, 2016 1,029,100 1,027,8035,225,000 3.66% due Jan. 25, 2017 5,482,166 5,469,536

Terasen Gas Inc.100,000 6.50% due May 1, 2034 138,000 132,215500,000 5.90% due Feb. 26, 2035 657,250 623,368500,000 5.80% due May 13, 2038 655,625 627,533

Toronto Hydro Corporation2,600,000 5.54% due May 21, 2040 3,209,783 3,187,264

TransCanada PipeLines Ltd.380,000 11.80% due Nov. 20, 2020 614,612 575,493

2,675,000 8.29% due Feb. 5, 2026 3,951,910 3,824,965500,000 7.31% due Jan. 15, 2027 693,000 665,582945,000 7.90% due Apr. 15, 2027 1,231,541 1,323,565260,000 6.28% due May 26, 2028 302,250 321,332

1,300,000 8.21% due Apr. 25, 2030 1,940,640 1,883,565Union Gas Ltd.

1,500,000 4.64% due Jun. 30, 2016 1,601,580 1,586,2841,000,000 4.85% due Apr. 25, 2022 1,165,500 1,134,300

250,000 8.65% due Nov. 10, 2025 365,975 364,871440,000 5.46% due Sep. 11, 2036 545,380 522,623

2,500,000 5.20% due Jul. 23, 2040 3,090,250 2,906,174Union Gas Ltd. (callable)

2,095,000 4.88% due Jun. 21, 2041 -(Dec. 21, 2040) 2,480,271 2,333,179Vancouver International Airport Authority

500,000 5.02% due Nov. 13, 2015 543,100 524,657Westcoast Energy Inc.

1,715,000 3.28% due Jan. 15, 2016 1,782,641 1,758,543500,000 3.88% due Oct. 28, 2021 540,100 526,043800,000 8.85% due Jul. 21, 2025 1,109,920 1,154,467

1,715,000 7.30% due Dec. 18, 2026 2,360,119 2,272,157675,000 6.75% due Dec. 15, 2027 817,924 859,574


AverageCost ($)

CarryingValue ($)


400,000 7.15% due Mar. 20, 2031 516,120 535,3711,475,000 4.79% due Oct. 28, 2041 1,650,086 1,582,710

157,600,890 155,124,418


OTHER ASSETS, LESS LIABILITIES – 1.9% 6,149,664

NET ASSETS – 100.0% 318,664,057



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1. The Fund (note 1)i) The Fund’s investment objective is to preserve investment capital while seeking to achieve increased income by investing

primarily in a portfolio of Canadian government and corporate bonds, preferred shares of Canadian corporations and loans ofsupranational organizations. The Fund’s investments may also include mortgage-backed securities, mortgage bonds, mortgages,term loans, short-term instruments and cash equivalents. Duration may vary by no more than one year from the duration of theDEX Universe Bond Index.

2. Transition to IFRS (note 13)The following reconciliations between IFRS and Canadian GAAP, as required by IFRS1 and the related explanation of any significantadjustments are as follows:

i) Reconciliations of net assets as previously reported under Canadian GAAP

Equity December 31, 2013 January 1, 2013

Net assets as reported under Canadian GAAP $290,205,849 $298,684,650

Revaluation of Investments at FVTPL 287,911 387,480

Net assets attributable to holders of redeemable units $290,493,760 $299,072,130

ii) Reconciliations of comprehensive income as previously reported under Canadian GAAP

Comprehensive Income June 30, 2014

Comprehensive income as reported under Canadian GAAP $(3,128,347)

Revaluation of Investments at FVTPL (103,994)

Increase (decrease) in net assets attributable to holders of redeemable units $(3,232,341)

The difference in the amounts reported under Canadian GAAP and the amounts reported under IFRS is mainly due to the revaluationof investments at FVTPL upon transition to IFRS.

There were no material adjustments to net assets as of June 30, 2013 and comprehensive income for the period from January 1 toDecember 31, 2013, and therefore a reconciliation has not been provided.




Less than 1 year 29,538,448 50,122,588 $ 23,155,408

1-3 years 172,043,409 142,335,297 31,972,794

3-5 years – – 86,832,319

5-10 years 12,888,296 11,708,137 24,746,019

> 10 years 98,044,240 83,332,038 127,655,932

Total 312,514,393 $287,498,060 $294,362,472

* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying and preferred shares as applicable.

As at June 30, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve andall other variables held constant, Net Assets would have decreased or increased, respectively, by $4,467,680 or approximately 1.4% oftotal Net assets attributable to holders of redeemable units (December 31, 2013 – $3,625,459 or approximately 1.2% Net assetsattributable to holders of redeemable units, January 1, 2013 – $5,976,351 or approximately 2.0% of total Net assets attributable toholders of redeemable units). In practice, actual results may differ from this sensitivity analysis and the difference could be material.

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ii) Credit risk



Percentage ofTotal Bond and

DebentureInstruments (%)

Percentage ofNet assets

attributable toholders of

redeemableunits (%)





redeemableunits (%)





redeemableunits (%)

A– to AAA+ 98.7 96.8 99.4 98.0 93.1 91.6

B– to BBB+ 1.3 1.3 0.6 0.5 6.9 6.8

Total 100.0 98.1 100.0 98.5 100.0 98.4

iii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $374,928 $ – $3,685,148 $ – $109,899


$318,664,057 $374,928 $290,493,760 $3,685,148 $299,072,130 $109,899

Redeemable units are redeemable on demand at the holder’s option. However, the Manager does not expect that the contractualmaturity disclosed in the table above will be representative of the actual cash outflows, as holders of these instruments typicallyretain them for a longer term.





Federal Bonds 42.0 48.5 33.0

Provincial Bonds 7.4 4.2 11.4

Municipal Bonds – – 0.7

Corporate Bonds 48.7 46.3 48.6

Mortgage-Backed Securities – – 4.7

Money Market Instruments – 1.5 1.0

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Bond and Debenture Instruments $ – $312,514,393 $ – $312,514,393



Money Market Instruments – 4,423,817 – 4,423,817

$ – $291,921,877 $ – $291,921,877




$ – $297,436,458 $ – $297,436,458


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Scotia Private High Yield Income Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $843,879,346 $748,931,300 $569,946,010Cash 23,219 7,548 98,148Accrued investment income 10,486,038 10,541,363 8,396,798Subscriptions receivable 2,022,791 521,624 170,326

856,411,394 760,001,835 578,611,282

LIABILITIESCurrent liabilitiesPayable for securities purchased – – 6,079,586Distributions payable 1,086,091 – –Redemptions payable 179,755 321,214 156,211Accrued expenses 113,765 – –

1,379,611 321,214 6,235,797



Pinnacle Series Units $135,434,412 $124,683,620 $120,492,992Series F Units $ 14,714,852 $ 13,233,849 $ 11,195,181Series I Units $421,068,526 $327,520,685 $214,668,154Series M Units $283,813,993 $294,242,467 $226,019,158

UNITS OUTSTANDINGPinnacle Series Units 14,034,477 13,256,227 12,896,125Series F Units 1,452,114 1,355,346 1,154,540Series I Units 43,505,091 34,719,535 22,913,212Series M Units 29,117,159 31,104,735 24,060,230


Pinnacle Series Units $ 9.65 $ 9.40 $ 9.34Series F Units $ 10.13 $ 9.76 $ 9.69Series I Units $ 9.68 $ 9.43 $ 9.37Series M Units $ 9.75 $ 9.46 $ 9.39


2014 2013


Dividends $ 1,728,934 $ 944,159Interest for distribution purposes 21,981,097 20,396,027Net realized gain (loss) on non-derivative financial assets 7,997,045 1,266,852Net realized gain (loss) on currency forwards 2,930,095 –Net gain (loss) foreign exchange (178,340) 150,897Change in unrealized appreciation (depreciation) of

non-derivative financial assets 12,304,820 (4,820,592)

Net gain (loss) on investments 46,763,651 17,937,343Securities lending 68,973 26,046

Total income (loss) 46,832,624 17,963,389

EXPENSESManagement fees (note 5) 498,514 429,867Harmonized Sales Tax/Goods and Services Tax 54,811 51,463Audit fees 9,564 8,059Independent Review Committee fees 1,347 1,969Custodian fees 6,145 4,115Filing fees 9,282 8,926Legal fees 7,602 6,157Unitholder reporting costs 6,786 7,900Unitholder administration and service fees 86,530 88,344Overdraft charges 1,404 423Foreign withholding taxes/tax reclaims 259,340 141,624Transaction costs 38,196 9,305

Total expenses 979,521 758,152

Net expenses 979,521 758,152

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $45,853,103 $17,205,237


Pinnacle Series Units $ 7,092,435 $ 3,218,553Series F Units $ 854,287 $ 417,647Series I Units $20,279,977 $ 6,167,235Series M Units $17,626,404 $ 7,401,802


Pinnacle Series Units $ 0.52 $ 0.26Series F Units $ 0.61 $ 0.35Series I Units $ 0.50 $ 0.23Series M Units $ 0.58 $ 0.27

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 13,611,649 12,590,109Series F Units 1,394,707 1,206,262Series I Units 40,905,561 27,236,608Series M Units 30,484,970 27,454,219


Portfolio Advisor: Guardian Capital LP


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Scotia Private High Yield Income Pool (Unaudited – Continued)


2014 2013

NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – BEGINNING OF PERIOD

Pinnacle Series Units $124,683,620 $120,492,992Series F Units 13,233,849 11,195,181Series I Units 327,520,685 214,668,154Series M Units 294,242,467 226,019,158

759,680,621 572,375,485


Pinnacle Series Units 7,092,435 3,218,553Series F Units 854,287 417,647Series I Units 20,279,977 6,167,235Series M Units 17,626,404 7,401,802

45,853,103 17,205,237

DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLEUNITS

From net investment incomePinnacle Series Units (3,885,878) (3,959,259)Series F Units (354,333) (353,680)Series I Units (12,296,708) (9,258,622)Series M Units (8,576,422) (8,809,330)

(25,113,341) (22,380,891)


Pinnacle Series Units 13,296,165 9,675,064Series F Units 1,295,761 1,292,025Series I Units 103,307,303 68,214,391Series M Units 61,886,926 83,145,649

Reinvested distributionsPinnacle Series Units 3,872,908 3,937,564Series F Units 80,379 84,141Series I Units 12,296,702 9,258,622Series M Units 6,287,764 6,105,927

Payments on redemptionPinnacle Series Units (9,624,838) (15,518,500)Series F Units (395,091) (444,488)Series I Units (30,039,433) (2,396,249)Series M Units (87,653,146) (30,105,677)

74,611,400 133,248,469


Pinnacle Series Units 10,750,792 (2,646,578)Series F Units 1,481,003 995,645Series I Units 93,547,841 71,985,377Series M Units (10,428,474) 57,738,371

95,351,162 128,072,815

NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – END OF PERIOD

Pinnacle Series Units 135,434,412 117,846,414Series F Units 14,714,852 12,190,826Series I Units 421,068,526 286,653,531Series M Units 283,813,993 283,757,529

$855,031,783 $700,448,300


2014 2013

CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders

of redeemable units $ 45,853,103 $ 17,205,237Adjustments For:

Net realized gain (loss) on sale of non-derivativefinancial assets (7,997,045) (1,266,852)

Net realized gain (loss) foreign exchange on cash 178,340 (150,897)Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets (12,304,820) 4,820,592Purchases of non-derivative financial assets (754,222,302) (529,557,052)Proceeds from sale of non-derivative financial assets 679,537,783 397,703,942Transaction costs 38,196 9,305Accrued investment income 55,325 (844,513)Accrued expenses 113,765 99,181

Net cash provided by (used in) operating activities (48,747,655) (111,981,057)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 178,284,988 161,332,850Amounts paid on redemption of redeemable units (127,853,966) (48,026,014)Distributions to unitholders of redeemable units (1,489,356) (1,543,402)

Net cash provided by (used in) financing activities 48,941,666 111,763,434Net gain (loss) foreign exchange on cash (178,340) 150,897Net increase (decrease) in cash 194,011 (217,623)Cash at beginning of period 7,548 98,148


Interest received(1) 20,968,229 19,406,141Dividends received, net of withholding taxes(1) 1,945,500 947,909




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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2014


AverageCost ($)

CarryingValue ($)


Canada Housing Trust No. 15,000,000 2.90% due Jun. 15, 2024 5,068,200 5,093,880

Government of Canada5,000,000 1.25% due Sep. 1, 2018 4,925,750 4,958,714

10,000,000 1.75% due Mar. 1, 2019 10,037,200 10,099,3948,950,000 1.50% due Jun. 1, 2023 8,179,210 8,500,1554,000,000 4.00% due Jun. 1, 2041 4,745,960 4,907,813

32,956,320 33,559,956

Provincial Bonds – 6.4%Province of New Brunswick

13,500,000 4.50% due Feb. 4, 2015 13,892,850 13,774,603Province of Ontario

8,100,000 3.25% due Sep. 8, 2014 8,339,760 8,132,36821,000,000 4.40% due Mar. 8, 2016 22,365,300 22,117,18710,000,000 3.20% due Sep. 8, 2016 10,486,300 10,413,084

55,084,210 54,437,242

Mortgage-Backed Securities – 0.5%Merrill Lynch Financial Assets Inc.

599,000 6.45% due Jun. 12, 2035 296,386 337,441Miramax LLC, Class A

1,000,000 6.25% due Oct. 20, 2015 340,029 355,161Miramax LLC, Class B

3,000,000 10.00% due Apr. 20, 2017 2,718,907 3,014,749

3,355,322 3,707,351

Corporate Bonds – 76.5%ACCO Brands Corp.

1,400,000 6.75% due Apr. 30, 2020 1,383,755 1,575,736Ainsworth Lumber Ltd. (callable)

1,800,000 7.50% due Dec. 15, 2017-(2014) 1,806,757 2,025,946AK Steel Corporation (callable)

8,070,000 7.63% due May 15, 2020-(2015) 8,080,863 8,889,2772,000,000 8.38% due Apr. 1, 2022-(2017) 1,783,330 2,272,388

Alliance Grain Traders Inc.12,000,000 9.00% due Feb. 14, 2018 11,949,375 12,905,000

Allied Nevada Gold Corporation (callable)13,750,000 8.75% due Jun. 01, 2019-(2016) 13,443,760 10,243,750

Amkor Technology Inc.2,500,000 6.38% due Oct. 1, 2022 2,618,653 2,870,490

Armstrong Energy, Inc. (callable)11,875,000 11.75% due Dec. 15, 2019-(2016) 11,361,330 13,650,663

Athabasca Oil Corporation (callable)18,500,000 7.50% due Nov. 19, 2017-(2014) 18,382,500 18,892,123

Bank of Montreal10,000,000 2.24% due Dec. 11, 2017 10,060,400 10,092,702

Bank of Nova Scotia, The (callable)11,000,000 3.04% due Oct. 18, 2024-(2019) 10,837,600 11,281,412

Banro Corporation (callable)7,750,000 10.00% due Mar. 1, 2017-(2014) 7,747,676 6,366,420

Baytex Energy Corporation (callable)6,000,000 6.63% due Jul. 19, 2022-(2017) 6,000,000 6,461,250

Bombardier Inc.2,000,000 7.35% due Dec. 22, 2026 2,025,000 2,103,333

Bristow Group, Inc.1,850,000 6.25% due Oct. 15, 2022-(2017) 1,814,757 2,136,498

Cameco Corporation (callable)4,000,000 4.19% due Jun. 24, 2024-(Mar. 24, 2024) 3,998,400 4,047,639

Canadian Energy Services & TechnologyCorporation (callable)

4,500,000 7.38% due Apr. 17, 2020-(Apr. 17, 2017) 4,500,000 4,798,125


AverageCost ($)

CarryingValue ($)


Canadian Imperial Bank of Commerce10,000,000 2.22% due Mar. 7, 2018 9,673,000 10,075,192

Canadian International Oil Corporation*6,696,462 11.00% due May 2, 2016 6,598,963 6,696,462

Cascades, Inc.10,000,000 5.50% due Jul. 15, 2021 10,000,000 9,988,750

CCO Holdings LLC/CCO Holdings CapitalCorporation (callable)

2,350,000 5.25% due Sep. 30, 2022-(Sep. 30, 2017) 2,331,399 2,555,908Centric Health Corp. (callable)

11,500,000 8.63% due Apr. 18, 2018-(Apr. 18, 2016) 11,470,000 9,890,000CenturyLink, Inc.

4,850,000 5.80% due Mar. 15, 2022 5,122,778 5,415,180CHC Helicopter SA (callable)

4,230,000 9.25% due Oct. 15, 2020-(2015) 4,151,799 4,941,483Citigroup Inc.

9,000,000 4.75% due Feb. 15, 2015 10,218,796 9,853,682Cng Holdings, Inc. (callable)

1,200,000 9.38% due May 15, 2020-(2016) 1,194,303 1,065,782Connacher Oil & Gas Limited (callable)

3,000,000 8.75% due Aug. 1, 2018-(2015) 2,282,500 2,353,125Connacher Oil and Gas Limited (callable)

6,850,000 8.50% due Aug. 1, 2019-(2015) 6,665,288 5,846,331Data & Audio-Visual Enterprises Holdings Inc.*(callable)

6,507,000 9.50% due Apr. 29, 2018-(2014) 6,457,333 4,546,4413,833,737 15.0% due Sep. 25, 2018-(Jul. 22, 2013) 3,578,510 –

Data & Audio-Visual Enterprises Holdings Inc.*1,558,773 15.50% due July 15, 2014 1,261,435 137,172

DISH DBS Corporation2,500,000 7.75% due May 31, 2015 2,646,852 2,832,1631,000,000 4.63% due Jul. 15, 2017 1,178,476 1,144,1955,000,000 4.25% due Apr. 1, 2018 5,013,554 5,567,6172,350,000 5.00% due Mar. 15, 2023 2,381,402 2,570,399

DPL Inc. (callable)9,500,000 7.25% due Oct. 15, 2021-(Jul. 15) 10,495,991 11,186,576

El Paso Corporation900,000 7.25% due Jun. 1, 2018 919,889 1,096,257

Fairfax Financial Holdings Limited13,117,000 7.38% due Apr. 15, 2018 15,750,406 16,080,1991,500,000 6.40% due May 25, 2021 1,502,020 1,704,0012,000,000 7.75% due Jul. 15, 2037 1,943,339 2,544,477

First Quantum Minerals Ltd. (callable)4,015,000 6.75% due Feb. 15, 2020-(2017) 3,695,481 4,433,3174,015,000 7.00% due Feb. 15, 2021-(2018) 3,695,481 4,422,608

Fly Leasing Ltd. (callable)5,300,000 6.75% due Dec. 15, 2020-(2016) 5,934,725 6,050,099

Ford Credit Canada Limited5,000,000 2.63% due Nov. 21, 2016 5,044,905 5,066,9938,000,000 4.88% due Feb. 8, 2017 8,592,800 8,559,876

Frontier Communications Corporation1,600,000 8.75% due Apr. 15, 2022 1,655,293 1,984,339

Goldman Sachs Group, Inc.6,500,000 3.38% due Feb. 1, 2018 6,491,420 6,715,446

Golf Town Canada Inc. (callable)11,750,000 10.50% due Jul. 24, 2018-(2015) 11,773,750 12,124,531

Great-West Lifeco Finance (Delaware) LP6,000,000 5.69% due Jun. 21, 2017 6,567,600 6,624,946

Gulfmark Offshore Inc.2,000,000 6.38% due Mar. 15, 2017 1,971,201 2,229,714

Hertz Corp, The (callable)5,706,000 6.25% due Oct. 15, 2022-(2017) 6,506,798 6,498,341



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AverageCost ($)

CarryingValue ($)


HSBC Bank of Canada5,000,000 2.94% due Jan. 14, 2020 4,895,100 5,113,162

Huntington Ingalls Industries Inc. (callable)1,500,000 7.13% due Mar. 15, 2021-(2016) 1,456,597 1,760,300

IAMGOLD Corporation9,500,000 6.75% due Oct. 1, 2020 9,232,438 9,425,609

Industrial Alliance Insurance & FinancialServices Inc. (callable)

2,250,000 2.80% due May 16, 2024-(2019) 2,248,853 2,267,964Iron Mountain Canada Operations ULC(callable)

7,000,000 6.13% due Aug. 15, 2021-(2017) 7,015,000 7,336,875Isle of Capri Casions Inc. (callable)

4,000,000 8.88% due Jun. 15, 2020-(2016) 4,062,398 4,587,450Kodiak Oil & Gas Corporation (callable)

2,790,000 5.50% due Jan. 15, 2021-(2017) 3,169,611 3,110,451Kruger Products LP

4,000,000 8.00% due Aug. 9, 2018 4,000,000 4,370,833Loblaw Companies Limited

5,000,000 3.75% due Mar. 12, 2019 5,243,650 5,264,970Lone Pine Resources Canada (callable)*

5,900,000 10.38% due Feb. 15, 2017-(2015) 5,967,216 –Magnum Hunter Resources Corporation(callable)

9,000,000 9.75% due May 15, 2020-(2016) 9,068,363 10,705,827MEG Energy Corporation (callable)

6,250,000 6.38% due Jan. 30, 2023-(Jul. 30, 2017) 6,343,117 7,084,542Mercer International Inc. (callable)

1,750,000 9.50% due Dec. 1, 2017-(2014) 1,845,579 2,004,675MetroPCS Communications, Inc. (callable)

2,000,000 7.88% due Sep. 1, 2018-(2014) 2,085,174 2,244,116MGM Resorts International

1,500,000 6.63% due Dec. 15, 2021 1,727,041 1,792,306Millar Western Forest Products Ltd. (callable)

10,625,000 8.50% due Apr. 1, 2021-(2016) 8,977,545 12,128,737Morgan Stanley

9,000,000 4.90% due Feb. 23, 2017 9,545,000 9,656,651Navistar International Corporation (callable)

2,000,000 8.25% due Nov. 1, 2021-(2014) 2,162,940 2,237,715Newalta Corp. (callable)

4,150,000 5.88% due Apr. 1, 2021-(2017) 4,158,000 4,284,875Newalta Corporation (callable)

2,500,000 7.75% due Nov. 14, 2019-(2015) 2,500,000 2,719,792North American Energy Partners Inc. (callable)

2,847,000 9.13% due Apr. 7, 2017-(2014) 2,809,539 2,952,996NOVA Chemicals Corporation (callable)

2,000,000 8.63% due Nov. 1, 2019-(2014) 2,127,235 2,277,722NRG Energy, Inc. (callable)

7,372,000 8.25% due Sep. 1, 2020-(2015) 7,321,298 8,645,824NRG Energy, Inc.

2,500,000 7.63% due Jan. 15, 2018 2,477,168 3,064,843NRL Energy Investments Ltd. (callable)

16,000,000 8.25% due Apr. 13, 2018-(2015) 14,085,000 14,876,040Paramount Resources Ltd. (callable)

8,000,000 8.25% due Dec. 13, 2017-(2014) 8,150,000 8,356,32313,500,000 7.63% due Dec. 4, 2019-(2015) 13,538,405 14,377,500

PBF Holding Co. LLC (callable)7,000,000 8.25% due Feb. 15, 2020-(2016) 6,874,390 8,158,726

Perpetual Energy Inc. (callable)1,220,000 8.75% due Mar. 15, 2018-(2015) 1,061,400 1,217,7136,375,000 8.63% due Feb. 1, 2020-(2016) 6,475,019 7,158,222


AverageCost ($)

CarryingValue ($)


Pilgrim’s Pride Corporation (callable)5,000,000 7.88% due Dec. 15, 2018-(2014) 4,890,584 5,654,565

Postmedia Network Inc. (callable)7,625,500 8.25% due Aug. 16, 2017-(2015) 7,659,466 7,935,286

Precision Drilling Corporation (callable)9,000,000 6.50% due Mar. 15, 2019-(2015) 9,173,125 9,519,450

Quadra FNX Mining Ltd. (callable)1,000,000 7.75% due Jun. 15, 2019-(2015) 972,027 1,148,196

Quebecor Media (callable)2,447,000 7.38% due Jan. 15, 2021-(2016) 2,495,940 2,677,426

Quebecor Media6,750,000 6.63% due Jan. 15, 2023 6,753,938 7,014,375

Reynolds Group Issuer LLC (callable)7,000,000 5.75% due Oct. 15, 2020-(2015) 7,636,231 7,897,348

RioCan Real Estate Investment Trust4,290,000 3.72% due Dec. 13, 2021 4,277,988 4,366,081

River Cree Enterprises (callable)1,750,000 11.00% due Jan. 20, 2021-(2018) 1,749,668 1,900,938

Royal Bank of Canada (callable)5,000,000 2.99% due Dec. 6, 2024-(2019) 4,821,650 5,110,869

Savanna Energy Services Corp. (callable)5,525,000 7.00% due May 25, 2018-(2014) 5,510,135 5,736,792

Sherritt International Corporation10,300,000 8.00% due Nov. 15, 2017 10,583,500 10,702,782

Sherritt International Corporation (callable)12,000,000 7.50% due Sep. 24, 2020-(2019) 11,793,750 12,194,800

Smithfield Foods, Inc. (callable)2,500,000 6.63% due Aug. 15, 2022-(2017) 2,513,998 2,933,834

Sobeys Inc.4,300,000 3.52% due Aug. 8, 2018 4,443,577 4,455,321

Southern Pacific Resource Corporation (callable)6,000,000 8.75% due Jan. 25, 2018-(2015) 5,540,250 4,506,875

Sprint Communications Inc4,000,000 6.00% due Nov. 15, 2022 4,163,560 4,357,202

Taseko Mines Limited (callable)7,700,000 7.75% due Apr. 15, 2019-(2015) 7,552,894 8,276,346

Tervita Corporation (callable)7,500,000 9.75% due Nov. 1, 2019-(2015) 7,356,675 7,781,328

Transcontinental Inc.7,750,000 3.90% due May 13, 2019 7,750,000 7,801,878

Trevali Mining Corporation2,000,000 12.50% due May 30, 2019 1,960,000 1,970,000

Trilogy Energy Trust (callable)7,000,000 7.25% due Dec. 13, 2019-(2015) 7,085,000 7,446,250

United Refining Company (callable)4,074,000 10.50% due Feb. 28, 2018-(2015) 3,958,776 4,753,811

United States Steel Corporation1,900,000 7.38% due Apr. 1, 2020 2,055,861 2,242,383

Verizon Communications Inc.10,000,000 2.50% due Sep. 15, 2016 11,459,266 11,037,030

Videotron Ltd. (callable)6,500,000 5.63% due Jun. 15, 2025-(Mar. 15, 2025) 6,500,000 6,598,583

Wajax Corp. (callable)2,250,000 6.13% due Oct. 23, 2020-(2017) 2,250,000 2,361,563

Wells Fargo Financial Canada Corporation17,250,000 3.04% due Jan. 29, 2021 17,439,578 17,521,405

Wynn Las Vegas LLC / Corporation (callable)5,500,000 4.25% due May 30, 2023-(Feb. 28, 2023) 5,766,956 5,730,948

639,299,112 654,230,778

TOTAL BOND AND DEBENTURE INSTRUMENTS 730,694,964 745,935,327



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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2014FaceValue ($)/Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES – 5.9%Canadian Equities – 0.1%

372,000 Banro Corp. Warrants Mar. 2, 2017* – 3,175520,000 Canadian International Oil Corporation

Warrants May 2, 2016* – –20,700 Data & Audio-Visual Enterprises Holdings Inc.

Warrants*$12.00 Sep. 25, 2018 – –

48,300 Data & Audio-Visual Enterprises Holdings lnc.*Warrants $3.91 Sep. 25, 2018 – –

735,926 Lone Pine Resources Canada Ltd.* – 1,044,211246,400 Trevali Mining Corporation Warrants

Sep. 30, 2014* – 82,027

– 1,129,413

United States – 5.8%735,926 Lone Pine Resources Inc.* – 785

1,116,100 SPDR Barclays Capital High Yield Bond ETF 45,971,334 49,688,323

45,971,334 49,689,108

TOTAL EQUITIES 45,971,334 50,818,521

MONEY MARKET INSTRUMENTS – 5.5%19,820,000 Government of Canada Treasury Bills

0.91% to 0.97% due fromJul. 3, 2014 to Aug. 14, 2014 19,796,520 19,803,607

11,200,000 Province of Ontario Promissory Notes(U.S.) 0.08% to 0.98% due from

Jul. 9, 2014 to Jul. 29, 2014 12,050,698 11,874,3789,420,000 Province of Quebec Promissory Notes

(U.S.) 0.07% to 0.09% due fromJul. 2, 2014 to Jul. 28, 2014 10,209,526 10,049,556

5,060,000 Farm Credit Canada Commercial Paper(U.S.) 0.07% due Jul. 29, 2014 5,483,367 5,397,957

47,540,111 47,125,498



NET ASSETS – 100.0% 855,031,783

* This security is not actively traded and considered illiquid.


The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.

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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns and to provide income as well as capital growth by investing

primarily in high yield, lower rated Canadian corporate bonds, preferred shares and short-term money market securities. TheFund’s investments will have an average duration of 7 years and an average credit rating of single B. The fund’s investmentsmay also include up to 30% high yield, lower rated bonds of U.S. corporations.


(i) Reconciliations of net assets as previously reported under Canadian GAAP



Revaluation of Investments at FVTPL 1,740,645 1,557,934


(ii) Reconciliations of comprehensive income as previously reported under Canadian GAAP


Comprehensive income as reported under Canadian GAAP $16,894,846

Revaluation of Investments at FVTPL 310,391

Increase (decrease) in net assets attributable to holders of redeemable units $17,205,237






Less than 1 year 81,955,118 $ 36,735,208 $ 10,471,934

1-3 years 275,173,074 216,983,308 149,020,415

3-5 years 195,900,354 200,082,011 168,267,998

5-10 years 176,415,133 123,341,784 131,839,796

> 10 years 16,491,648 12,164,720 17,902,211

Total $745,935,327 $589,307,031 $477,502,354

* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying and preferred shares as applicable.

As at June 30, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve andall other variables held constant, net assets attributable to holders of redeemable units would have decreased or increased,respectively, by $6,566,201 or approximately 0.8% of total net assets attributable to holders of redeemable units (December 31,2013 – $5,654,147 or approximately 0.7% net assets attributable to holders of redeemable units, January 1, 2013 – $5,136,050 orapproximately 0.9% of total net assets attributable to holders of redeemable units). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

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ii) Currency risk

The table below indicates the currency to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The table alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.

June 30, 2014

CurrencyNet CurrencyExposure ($)

Percentage ofNet Assets (%)

Impact if Canadiandollar had

strengthened orweakened by 10%


US Dollar 365,599,238 42.8 36,559,924 4.3

December 30, 2013






US Dollar 356,967,783 47.0 35,696,778 4.7

January 1, 2013






US Dollar 268,890,792 47.0 26,889,079 4.7

iii) Other price risk

Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting amarket or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2014,approximately 5.9% (December 31, 2013 – 15.0%, January 1, 2013 – 5.8%) of the Fund’s net assets attributable to holders ofredeemable units were exposed to other price risk. If prices of these investments had decreased or increased by 10%, with all othervariables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased,respectively, by approximately $5,081,852 (December 31, 2013 – $11,393,995, January 1, 2013 – $3,273,996). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.

iv) Credit risk







redeemableunits (%)





redeemableunits (%)





redeemableunits (%)

A– to AAA+ 23.7 20.7 16.0 12.4 7.9 6.6

B– to BBB+ 59.5 51.9 64.7 50.2 69.8 58.2

C– to CCC+ 13.6 11.9 14.2 11.0 16.4 13.7

Unrated 3.2 2.8 5.1 4.0 5.9 4.8

Total 100.0 87.3 100.0 77.6 100.0 83.3BO

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v) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $1,379,611 $ – $321,214 $ – $6,235,797


$855,031,783 $1,379,611 $759,680,621 $312,214 $572,375,485 $6,235,797


vi) Concentration risk




Bond and Debenture Instruments 87.3 77.6 83.3

Equities 5.9 15.0 5.8

Money Market Instruments 5.5 6.0 10.5

vi) Fair value classification (note 2)



Equities $ 49,688,323 $ – $ 1,044,996 $ 50,733,319

Warrants – 85,202 – 85,202

Bond and Debenture Instruments – 734,555,252 11,380,075 745,935,327


$ 49,688,323 $781,765,952 $12,425,071 $843,879,346


Equities $113,954,780 $ – $ – $113,954,780

Warrants – 11,856 – 11,856

Bond and Debenture Instruments – 577,099,280 12,207,751 589,307,031


$113,954,780 $622,768,769 $12,207,751 $748,931,300

January 1 , 2013 Level 1 Level 2 Level 3 Total

Equities $ 32,404,098 $ 40,866 $ – $ 32,444,964

Warrants – 294,997 – $ 294,997

Bond and Debenture Instruments – 477,502,354 – $477,502,354

Money Market Instruments – 59,703,695 – $ 59,703,695

$ 32,404,098 $537,541,912 $ – $569,946,010


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Reconciliation of Level 3 Financial InstrumentsThe following table presents the movement in the Fund’s Level 3 financial instruments for the years ended at June 30,2014, December 31, 2013 and January 1, 2013.


Beginning of period $12,207,751 $ – $ –

Purchases 98,963 9,078,143 –

Sales – – –

Transfers into Level 3 – 8,719,135 –

Transfers out of Level 3 – – –

Net realized gains (losses) – – –

Net change in unrealized appreciation (depreciation)* 118,358 (5,589,526) –

End of period $12,425,071 $12,207,751 $ –

* Net change in unrealized appreciation (depreciation) for Level 3 financial instruments held as at June 30, 2014, December 31, 2013 and January 1, 2013, was $118,358, $(2,011,017) andnil, respectively.

Level 3 Valuation TechniquesAs of June 30, 2014, the significant unobservable inputs and valuation techniques used to determine the fair value measurementscategorized in Level 3 are indicated below:

Valuation Technique Significant Unobservable Inputs June 30, 2014 December 31, 2013 January 1, 2013

Equities Financing Financing price $ 1,044,996 $ – $ –

Bond and Debenture Instruments Grey Market Trade(December 31, 2013 –Financing)

Transaction price (December 31,2013 – Financing price)

6,696,462 6,498,538 –

Bond and Debenture Instruments Internal Fundamental Model Probabilty weighting of residual fairvalue of wireless spectrum 4,546,441 5,693,625 –

Bond and Debenture Instruments Internal Fundamental Model Probabilty weighting of residual fairvalue of wireless spectrum 137,172 15,588 –

$12,425,071 $12,207,751 $ –

If the significant unobservable inputs used in determining the fair value of the Fund’s Level 3 financial instruments decreased orincreased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, byapproximately $621,254 (December 31, 2013 – $610,388), (January 1, 2013 – nil).

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Scotia Private American Core-Plus Bond Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $594,383,466 $420,421,455 $280,896,529Unrealized gain on currency

forward contracts 774,360 27,378 669,099Cash 99,147,772 74,796,818 41,186,145Accrued investment income 3,442,416 2,445,711 1,549,717Receivable for securities sold 15,975,399 5,351,809 2,472,460Subscriptions receivable 143,403 143,092 –

713,866,816 503,186,263 326,773,950

LIABILITIESCurrent liabilitiesPayable for securities purchased 151,842,395 86,584,357 53,341,852Distributions payable 1,150 – –Redemptions payable 42,669 20,383 857Accrued expenses 16,874 – –Unrealized loss on currency

forward contracts 70,830 904,317 357,418

151,973,918 87,509,057 53,700,127



Pinnacle Series Units $ 36,186,946 $ 32,009,024 $ 27,783,584Series F Units $ 148,189 $ 139,095 $ 112,512Series I Units $525,557,763 $383,529,087 $245,177,727

UNITS OUTSTANDINGPinnacle Series Units 3,936,404 3,610,634 3,035,648Series F Units 15,734 15,359 12,033Series I Units 55,522,569 41,999,468 26,003,440




2014 2013


Dividends $ 1 $ 1Interest for distribution purposes 7,589,108 4,705,241Net realized gain (loss) on non-derivative financial assets 14,940,261 4,580,405Net realized gain (loss) on currency forwards 1,178,093 (10,845,065)Net gain (loss) foreign exchange 1,487,030 507,853Change in unrealized appreciation (depreciation) of non-

derivative financial assets (1,181,161) (543,003)Change in unrealized appreciation (depreciation) of

currency forwards 1,580,469 (5,173,322)

Net gain (loss) on investments 25,593,801 (6,767,890)Securities lending 12,406 5,968


EXPENSESManagement fees (note 5) 535 474Harmonized Sales Tax/Goods and Services Tax 6,442 5,122Audit fees 5,762 4,075Independent Review Committee fees 820 996Custodian fees 16,576 10,914Filing fees 8,651 8,281Legal fees 4,643 3,152Unitholder reporting costs 4,509 5,299Unitholder administration and service fees 42,139 37,344Overdraft charges 6,895 2,363Foreign withholding taxes/tax reclaims 32,875 7,488



Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $25,477,667 $ (6,845,860)


Pinnacle Series Units $ 1,703,392 $ (541,411)Series F Units $ 7,079 $ (2,684)Series I Units $23,767,196 $ (6,301,765)


Pinnacle Series Units $ 0.45 $ (0.17)Series F Units $ 0.46 $ (0.19)Series I Units $ 0.46 $ (0.20)

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 3,756,314 3,125,005Series F Units 15,504 13,803Series I Units 51,482,912 31,804,295


Portfolio Advisor: Logan Circle Partners, L.P.


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Scotia Private American Core-Plus Bond Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $ 32,009,024 $ 27,783,584Series F Units 139,095 112,512Series I Units 383,529,087 245,177,727

415,677,206 273,073,823


Pinnacle Series Units 1,703,392 (541,411)Series F Units 7,079 (2,684)Series I Units 23,767,196 (6,301,765)

25,477,667 (6,845,860)


Pinnacle Series Units (491,354) (382,078)Series F Units (1,467) (1,268)Series I Units (7,516,763) (4,548,251)

(8,009,584) (4,931,597)



Reinvested distributionsPinnacle Series Units 489,185 381,619Series F Units 1,180 1,048Series I Units 7,516,761 4,548,251

Payments on redemptionPinnacle Series Units (2,952,689) (2,584,028)Series F Units – (6,178)Series I Units (17,077,825) (1,549,503)

128,747,609 98,720,643


Pinnacle Series Units 4,177,922 934,597Series F Units 9,094 19,110Series I Units 142,028,676 85,989,479

146,215,692 86,943,186



$561,892,898 $360,017,009


2014 2013




Net realized gain (loss) foreign exchange on cash (1,487,030) (507,853)Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets 1,181,161 543,003Change in unrealized appreciation (depreciation) of

forward currency contracts (1,580,469) 5,173,322Purchases of non-derivative financial assets (1,710,564,587) (974,535,419)Proceeds from sale of non-derivative financial assets 1,604,996,124 908,554,294Accrued investment income (996,705) (628,379)Accrued expenses 16,874 11,366


CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 140,770,686 97,565,157Amounts paid on redemption of redeemable units (20,008,228) (4,015,295)Distributions to unitholders of redeemable units (1,308) (342)

Net cash provided by (used in) financing activities 120,761,150 93,549,520Net gain (loss) foreign exchange on cash 1,487,030 507,853Net increase (decrease) in cash 22,863,924 20,733,589Cash at beginning of period 74,796,818 41,186,145

CASH AT END OF PERIOD $ 99,147,772 $ 62,427,587

Interest received(1) 6,559,529 4,069,375




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AverageCost ($)

CarryingValue ($)

BOND AND DEBENTURE INSTRUMENTS – 105.8%Australian Dollar – 0.3%

Morgan Stanley1,590,000 4.75% due Nov. 16, 2018 1,621,407 1,632,221

British Pound – 1.1%KFW 2.0% December 6,2018

800,000 2.00% due Dec. 6, 2018 1,460,985 1,460,985United Kingdom Treasury Gilt

350,000 4.75% due Mar. 7, 2020 690,569 729,215400,000 3.75% due Sep. 7, 2021 795,810 797,824

United Mexican States1,810,000 5.63% due Mar. 19, 2114 3,270,348 3,256,128

6,217,712 6,244,152

European Euro – 1.2%America Movil Sab De CV

1,400,000 3.26% due Jul. 22, 2023 1,905,514 2,243,546Bundesrepublik Deutschland

450,000 4.75% due Jul. 4, 2028 894,344 906,843Federal Republic of Germany

700,000 0.25% due Apr. 13, 2018 942,667 1,026,016Republic of Korea

75,000 4.25% due Dec. 7, 2021 113,400 128,642Republic of Slovenia

850,000 4.00% due Mar. 22, 2018 1,293,093 1,361,042600,000 4.38% due Feb. 6, 2019 945,659 982,529

Vale S.A.125,000 4.38% due Mar. 24, 2018 172,710 204,205

6,267,387 6,852,823

Hungary Forint – 0.4%Hungary Government

98,000,000 6.50% due Jun. 24, 2019 461,922 525,781340,000,000 6.00% due Nov. 24, 2023 1,731,959 1,822,008

2,193,881 2,347,789

Indonesian Rupee – 1.1%Government of Indonesia

7,200,000,000 7.00% due May 15, 2022 833,063 604,4839,000,000,000 5.63% due May 15, 2023 2,989,722 3,077,252

International Finance Corporation120,000,000 7.80% due Jun. 3, 2019 2,175,277 2,227,579

5,998,062 5,909,314

Japanese Yen – 0.2%Eksportfinans ASA

100,000,000 0.72% due Jul. 28, 2016 1,051,526 1,011,225

Mexican Peso – 1.7%America Movil SAB de C.V.

22,000,000 6.00% due Jun. 9, 2019 1,856,920 1,825,314America Movil Sab De CV

33,000,000 8.46% due Dec. 18, 2036 2,541,604 2,705,833Mex Bonos Desarr

30,180,000 6.50% due Jun. 9, 2022 2,659,848 2,638,172Mexican Udibonos

1,090,000 23.09% due Nov. 22, 2035 541,104 560,1893,650,000 20.52% due Nov. 8, 2046 1,795,350 1,764,980

9,394,826 9,494,488

New Zealand Dollar – 2.3%Citigroup Inc.

1,350,000 6.25% due Jun. 29, 2017 1,094,145 1,290,991JPMorgan Chase & Co

2,300,000 4.25% due Nov. 2, 2018 1,991,202 2,059,576


AverageCost ($)

CarryingValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)New Zealand Dollar (cont’d)

KFW2,500,000 3.75% due Jun. 14, 2018 2,311,335 2,263,828

New Zealand Government8,493,000 3.00% due Apr. 15, 2020 7,469,597 7,426,903

12,866,279 13,041,298

Norweigian Krone – 0.1%International Bank for Reconstruction andDevelopment, The

3,000,000 3.75% due May 19, 2017 538,514 547,833

Romanian New Leu – 0.6%Government of Romania

4,000,000 5.60% due Nov. 28, 2018 1,378,459 1,458,8315,910,000 5.85% due Apr. 26, 2023 2,036,196 2,165,615

3,414,655 3,624,446

South African Rand – 0.5%Republic of South Africa

25,000,000 8.25% due Sep. 15, 2017 2,645,166 2,573,969

Swedish Krona – 0.3%Swedish Government

8,350,000 3.50% due Jun. 1, 2022 1,486,041 1,531,409

United States Dollar – 96.0%Access Group Inc. (Floating Rate)

696,191 0.45% due Apr. 27, 2026 709,419 736,690Adjustable Rate Mortgage Trust

39,312 4.91% due Jan. 25, 2036 40,210 40,107African Development Bank

1,000,000 0.75% due Oct. 18, 2016 1,036,154 1,068,934Ally Auto Receivables Trust

487,676 0.52% due May 20, 2015 529,569 520,9072,825,000 0.70% due Dec. 21, 2015 3,139,939 3,019,4913,543,855 0.59% due Jan. 17, 2017 3,873,239 3,788,343

Ally Auto Receivables Trust 2011-11,171,229 2.23% due Mar. 15, 2016 1,300,286 1,258,040

Ally Auto Receivables Trust 2012-35,761,903 0.85% due Aug. 15, 2016 6,358,614 6,166,478

Ally Master Owner Trust2,785,000 1.54% due Sep. 15, 2016 3,082,898 2,980,4192,570,000 1.44% due Feb. 15, 2017 2,673,736 2,759,6733,670,000 1.21% due Jun. 15, 2017 3,965,750 3,938,516

485,000 1.00% due Feb. 15, 2018 486,220 517,075Altria Group, Inc.

130,000 9.95% due Nov. 10, 2038 231,336 230,795807,000 10.20% due Feb. 6, 2039 1,397,768 1,464,565

Amazon.com Inc.570,000 1.20% due Nov. 29, 2017 563,623 604,811

AmeriCredit Automobile Receivables Trust322,520 0.51% due Jan. 8, 2016 358,123 344,335465,652 0.49% due Apr. 8, 2016 501,032 497,149183,108 0.49% due Jun. 8, 2016 192,722 195,412386,926 2.28% due Jun. 8, 2016 382,480 413,514

4,238,159 0.68% due Oct. 11, 2016 4,652,495 4,528,286323,211 0.53% due Nov. 8, 2016 342,497 345,072

1,235,000 0.62% due Jun. 8, 2017 1,339,799 1,318,8064,204,000 0.67% due Jun. 8, 2017 4,637,544 4,490,0786,445,000 0.43% due Oct. 10, 2017 7,033,416 6,875,374

Ameriprise Financial Inc. (callable)320,000 7.52% due Jun. 1, 2066 -(2016) 315,340 378,262

Amgen Inc. (callable)1,320,000 2.20% due May 22, 2019-(Apr. 22, 2019) 1,430,490 1,411,486



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AverageCost ($)

CarryingValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)

Anheuser-Busch InBev Finance Inc.750,000 3.70% due Feb. 1, 2024 830,679 822,944

Anheuser-Busch InBev NV1,557,000 5.38% due Jan. 15, 2020 1,997,400 1,917,729

Anheuser-Busch InBev Worldwide Inc.475,000 8.20% due Jan. 15, 2039 780,628 782,338

Apple Inc.940,000 2.85% due May 6, 2021 1,029,476 1,014,330

ArcelorMittal1,445,000 7.25% due Mar. 1, 2041 1,623,935 1,649,007

AT&T Corporation365,000 8.00% due Nov. 15, 2031 542,026 561,764

AT&T Inc. (callable)630,000 4.80% due Jun. 15, 2044-(Dec. 15, 2043) 685,015 692,302

Baidu, Inc.1,523,000 3.25% due Aug. 6, 2018 1,658,584 1,687,236

Banc of America Commercial Mortgage Inc.144,447 2.75% due Nov. 25, 2033 141,209 149,210

1,795,000 6.42% due Feb. 10, 2051 2,098,545 2,180,549Banc of America CommercialMortgage Trust

437,668 5.50% due Mar. 11, 2041 467,443 469,3911,258,000 5.18% due Oct. 10, 2045 1,422,759 1,410,333

293,696 5.32% due Sep. 10, 2047 306,195 314,5541,545,000 5.79% due Apr. 10, 2049 1,878,767 1,845,303

Banc of America Mortgage Securities(callable)

19,692 2.76% due Oct. 25, 2034-(May 25, 2016) 11,314 20,450265,795 2.79% due Aug. 25, 2035-(Sep. 25, 2021) 225,931 264,63192,857 6.00% due Sep. 25, 2037-(Jan. 25, 2018) 82,863 90,646

Banc of America Mortgage Securities Inc.46,546 5.16% due Dec. 25, 2034 48,809 49,174

Banc of America Mortgage Trust 2005-31,935,631 5.50% due Apr. 25, 2035 2,228,387 2,163,404

Bancolombia S.A.700,000 6.13% due Jul. 26, 2020 825,991 808,894

Bank of America Alternative Loan Trust(callable)

122,070 6.00% due Jun. 25, 2035-(Mar. 25, 2023) 111,782 120,949Bank of America Auto Trust

3,672,700 0.78% due Jun. 15, 2016 3,818,481 3,927,252Bank of America Corporation

985,000 4.75% due Aug. 1, 2015 996,407 1,095,6231,760,000 4.00% due Apr. 1, 2024 1,938,240 1,933,214

BBVA US Senior SAU1,675,000 4.66% due Oct. 9, 2015 1,795,310 1,871,067

Bear Stearns Adjustable Rate MortgageTrust (callable)

717,075 2.96% due Jul. 25, 2034-(Feb. 25, 2016) 721,541 796,595Bear Stearns Asset Backed Securities(Floating Rate)

271,786 0.48% due Dec. 25, 2035 261,215 284,605Bear Stearns Asset Backed Securities Trust

57,413 0.83% due Sep. 25, 2035 58,595 61,439Bear Stearns Commercial MortgageSecurities Trust

590,000 5.12% due Feb. 11, 2041 645,347 644,124Bear Stearns Companies LLC

1,185,000 5.55% due Jan. 22, 2017 1,378,147 1,393,728BellSouth

945,000 7.88% due Feb. 15, 2030 1,353,474 1,357,484


AverageCost ($)

CarryingValue ($)


Bemis Company, Inc.75,000 5.65% due Aug. 1, 2014 81,095 80,353

BHP Billiton Ltd.700,000 3.85% due Sep. 30, 2023 720,985 784,444

Boston Scientific Corporation350,000 6.40% due Jun. 15, 2016 412,564 411,842890,000 6.00% due Jan. 15, 2020 1,130,134 1,107,510

BP Capital Markets PLC1,845,000 3.25% due May 6, 2022 1,931,803 1,997,615

Braskem Finance Ltd.1,460,000 6.45% due Feb. 3, 2024 1,602,097 1,664,186

Capital Auto Receivables Asset Trust1,000,000 1.29% due Apr. 20, 2018 984,092 1,068,331

CareFusion Corporation625,000 6.38% due Aug. 1, 2019 798,726 782,264

Carolina Power & Light Co. (callable)1,155,000 4.10% due Mar. 15, 2043-(Sep. 15, 2042) 1,190,721 1,224,953

CBS Corporation1,770,000 5.75% due Apr. 15, 2020 2,250,440 2,188,603

CD 2005-CD1 Commercial Mortgage Trust170,000 5.40% due Jul. 15, 2044 198,932 189,551

Chesapeake Energy Corporation (callable)(Floating Rate)

1,040,000 3.48% due Apr. 15, 2019-(2015) 1,136,463 1,131,197Chevron Corporation (callable)

1,350,000 3.19% due Jun. 24, 2023-(Mar. 24, 2023) 1,422,198 1,465,436Citicorp Mortgage Securities, Inc. (callable)

264,611 5.75% due Jun. 25, 2036 -(Jul. 25, 2016) 229,013 284,711Citigroup Commercial Mortgage Trust

740,000 5.43% due Oct. 15, 2049 771,999 857,794Citigroup Inc.

1,290,000 5.50% due Sep. 13, 2025 1,517,550 1,543,317CNOOC Finance 2013 Ltd.

920,000 3.00% due May 9, 2023 849,880 926,836Comcast Corporation

580,000 6.50% due Jan. 15, 2015 639,664 639,3221,185,000 3.60% due Mar. 1, 2024 1,311,617 1,306,188

Commercial Mortgage Asset Trust13,824 7.30% due Jan. 17, 2032 14,775 14,792

Commonwealth Edison Company510,000 5.80% due Mar. 15, 2018 564,552 623,783100,000 6.45% due Jan. 15, 2038 122,518 141,145

ConAgra Foods, Inc.265,000 4.95% due Aug. 15, 2020 323,014 315,648650,000 8.25% due Sep. 15, 2030 967,907 975,596

Consumers Energy Company150,000 6.13% due Mar. 15, 2019 170,885 189,151

Continental resources Inc. (callable)1,914,000 5.00% due Sep. 15, 2022-(Mar. 15, 2017) 2,213,716 2,224,427

Corporacion Andina de Fomento549,000 4.38% due Jun. 15, 2022 537,018 596,231

Countrywide Alternative Loan Trust19,719 5.50% due Mar. 25, 2036 26,010 16,658

Countrywide Asset-Backed Certificates115,287 5.53% due Mar. 25, 2029 102,953 119,185

Countrywide Home Loans (callable)37,181 2.50% due Sep. 20, 2034 -(Apr. 20, 2017) 36,065 21,92336,488 6.00% due Mar. 25, 2036-(Jan. 25, 2024) 38,751 35,320

Credit Suisse First Boston MortgageSecurities Corp.

750,000 4.93% due Nov. 15, 2037 777,948 810,488



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AverageCost ($)

CarryingValue ($)


Credit Suisse First Boston MortgageSecurities Corp.

16,463 5.12% due Dec. 15, 2036 16,611 17,659174,967 4.69% due Apr. 15, 2037 180,974 188,902290,000 5.29% due Aug. 15, 2038 315,653 311,762795,000 5.23% due Dec. 15, 2040 891,974 837,994

CVS Caremark Corporation540,000 3.25% due May 18, 2015 561,001 590,630

DIRECTV Holdings LLC2,275,000 5.00% due Mar. 1, 2021 2,629,051 2,709,205

DIRECTV Holdings LLC (callable)575,000 4.45% due Apr. 1, 2024-(Jan. 1, 2024) 633,423 651,487

Energy Transfer Partners (callable)1,070,000 6.05% due Jun. 1, 2041-(Dec. 1, 2040) 1,220,635 1,287,918

Enterprise Products Operating LLC (callable)805,000 7.03% due Jan. 15, 2068-(2018) 885,038 976,174

Enterprise Products Operating LLC1,775,000 5.25% due Jan. 31, 2020 2,066,941 2,170,433

Export-Import Bank of Korea, The400,000 4.13% due Sep. 9, 2015 412,102 443,630400,000 5.00% due Apr. 11, 2022 403,409 483,101

Express Scripts Holding Company1,470,000 2.25% due Jun. 15, 2019 1,598,510 1,565,4451,400,000 4.13% due Sep. 15, 2020 1,620,131 1,612,523

Express Scripts Holding Company (callable)880,000 3.50% due Jun. 15, 2024-(Mar. 15, 2024) 952,260 932,011

Fannie Mae87,053 5.50% due Sep. 25, 2017 91,220 98,454

754,992 5.26% due May 25, 2020 842,920 900,658262,882 3.51% due Sep. 1, 2020 289,412 297,322

1,480,656 2.73% due Apr. 1, 2022 1,544,622 1,608,385418,324 5.26% due Jun. 1, 2023 523,001 499,95343,445 4.50% due Aug. 25, 2023 40,479 49,620

633,864 3.80% due Sep. 1, 2023 691,132 701,365881,080 4.50% due Sep. 25, 2024 1,035,112 1,005,842118,542 5.00% due Oct. 25, 2024 124,755 136,865250,000 3.24% due Jun. 1, 2026 271,534 270,729

8,439 7.50% due Nov. 25, 2026 12,234 10,263400,000 4.50% due Jun. 25, 2029 461,607 455,412

1,145,530 4.00% due Nov. 25, 2029 1,185,049 1,280,3761,598 7.50% due Jun. 1, 2031 2,562 1,951

1,216,848 3.50% due Jan. 1, 2032 1,307,346 1,362,1282,128 7.50% due Apr. 1, 2032 3,090 2,598

20,632 5.41% due Sep. 26, 2033 23,619 24,0274,476 5.00% due Nov. 1, 2033 5,807 5,1651,773 5.00% due Nov. 1, 2034 2,103 2,0032,029 5.00% due Nov. 1, 2034 2,420 2,282

241,238 5.50% due Sep. 25, 2035 288,774 278,2908,467 5.00% due Jan. 1, 2036 9,395 9,769

674,814 5.50% due Aug. 1, 2037 827,044 808,946757,592 5.50% due Feb. 1, 2038 933,158 908,178554,450 2.50% due May 25, 2041 566,230 589,168

1,153,878 4.00% due Nov. 1, 2041 1,279,735 1,324,5868,930,000 2.50% due Dec. 1, 2099 9,765,930 9,678,795

16,715,000 3.00% due Dec. 1, 2099 17,812,931 17,619,2256,120,000 3.50% due Dec. 1, 2099 7,000,933 6,919,841

34,065,000 3.50% due Dec. 1, 2099 37,870,636 37,415,43113,615,000 4.00% due Dec. 1, 2099 15,584,336 15,415,97317,730,000 4.50% due Dec. 1, 2099 20,811,895 20,490,5119,480,000 5.00% due Dec. 1, 2099 11,391,330 11,230,9774,255,000 5.50% due Dec. 1, 2099 5,168,348 5,083,4652,615,000 6.00% due Dec. 1, 2099 3,202,055 3,140,279


AverageCost ($)

CarryingValue ($)


Fannie Mae Grantor Trust (callable)9,822 9.50% due Jul. 25, 2041-(Aug. 25, 2015) 15,196 12,0163,677 7.50% due Dec. 25, 2041-(Sep. 25, 2018) 5,301 4,732

Fannie Mae Grantor Trust234,994 6.99% due Feb. 19, 2030 266,429 285,572155,906 7.50% due Jun. 19, 2030 177,020 195,672179,278 7.50% due Jul. 25, 2041 211,338 228,101344,028 7.50% due Dec. 25, 2041 377,155 428,891

Fannie Mae Whole Loan (callable)121,840 6.50% due Feb. 25, 2044-(Dec. 25, 2020) 153,643 152,44944,331 6.50% due May 25, 2044-(Oct. 25, 2022) 53,523 55,413

Fannie Mae Whole Loan840,033 7.00% due Jul. 25, 2044 1,008,886 1,034,860793,971 6.00% due Feb. 25, 2047 1,019,186 966,329

Fannie Mae Whole Loan (callable)232,309 7.00% due Feb. 25, 2044-(Jul. 25, 2018) 264,664 289,264

Federal Home Loan Mortgage Corporation10,353 5.00% due Jun. 1, 2018 10,401 11,7537,598 5.00% due Sep. 1, 2033 10,350 8,756

1,415,346 2.50% due May 15, 2041 1,469,855 1,433,829910,160 3.00% due Jan. 15, 2042 962,751 989,648672,118 3.00% due Jul. 1, 2042 697,854 713,844

FHLMC Multifamily Structured Pass ThroughCertificates

985,000 2.86% due Jan. 25, 2021 1,101,059 1,090,786FHLMC Structured Pass Through Securities(callable)

17,942 6.50% due Sep. 25, 2043-(Aug. 25, 2020) 25,833 22,238FHLMC Structured Pass Through Securities

507,868 5.23% due May 25, 2043-(Nov. 25, 2020) 578,175 594,071First Horizon Mortgage Pass-Through Trust(callable)

437,858 2.63% due Dec. 25, 2034-(Oct. 25, 2017) 425,035 464,515Fomento Economico Mexicano S.A.B. deC.V. ADR

395,000 4.38% due May 10, 2043 393,422 399,610Ford Credit Auto Lease Trust

3,975,772 0.57% due Sep. 15, 2015 4,365,198 4,246,164Ford Credit Auto Owner Trust

1,488,597 0.38% due Feb. 15, 2016 1,627,431 1,589,4801,578,362 1.35% due Dec. 15, 2016 1,731,367 1,693,059

Ford Credit Auto Owner Trust 2009-D2,654,412 0.84% due Aug. 15, 2016 2,914,333 2,838,236

Freddie Mac (callable)8,378 7.00% due May 15, 2024-(Feb. 15, 2014) 10,956 10,115

Freddie Mac54,045 1.50% due Mar. 15, 2015 55,133 57,771

980,000 2.00% due Aug. 25, 2016 935,887 1,079,088165,000 4.00% due Aug. 15, 2024 169,225 187,981115,000 5.00% due May 15, 2026 117,625 132,514220,000 4.50% due Nov. 15, 2029 229,963 256,809

1,350,000 4.50% due Apr. 15, 2030 1,535,788 1,556,376351,716 5.00% due May 15, 2033 367,553 398,028114,363 5.00% due Jun. 15, 2033 124,330 132,744381,000 4.50% due Dec. 15, 2033 404,720 428,377377,708 4.00% due Nov. 15, 2036 411,830 427,696428,142 3.00% due May 15, 2041 451,633 463,139633,077 2.00% due Dec. 15, 2041 642,983 665,721

Freeport-McMoRan Copper & Gold Inc.1,735,000 3.10% due Mar. 15, 2020 1,803,162 1,871,223

GCCFC Commercial Mortgage Trust353,466 5.44% due Mar. 10, 2017 405,835 411,970



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AverageCost ($)

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GE Commercial Mortgage Corporation830,000 5.04% due Jul. 10, 2045 917,270 925,387

Genentech, Inc.20,000 4.75% due Jul. 15, 2015 23,495 22,295

General Electric Capital Canada(Floating Rate)

675,000 0.49% due Sep. 15, 2014 656,766 720,375General Electric Capital Corporation

515,000 5.25% due Dec. 6, 2017 583,441 620,597General Electric Company

695,000 4.50% due Mar. 11, 2044 764,188 773,309Georgia-Pacific LLC

1,060,000 8.88% due May 15, 2031 1,592,632 1,690,624Gilead Sciences, Inc. (callable)

2,490,000 4.80% due Apr. 1, 2044-(Oct. 1, 2043) 2,825,746 2,811,577Ginnie Mae II Pool

867,179 4.00% due Apr. 20, 2040 961,364 981,4881,903,200 4.56% due Nov. 1, 2062 2,092,624 2,247,203

GlaxoSmithKline Capital Inc.795,000 6.38% due May 15, 2038 1,111,389 1,098,721

GMAC Commercial Mortgage Securities, Inc.33,709 4.55% due Dec. 10, 2041 35,268 36,031

GMAC Mortgage Corporation Loan Trust(callable)

360,941 4.62% due May 25, 2035-(Nov. 25, 2021) 356,149 379,686Goldman Sachs Group, Inc., The

1,490,000 5.38% due Mar. 15, 2020 1,807,466 1,804,8771,755,000 4.00% due Mar. 3, 2024 1,942,505 1,905,5631,950,000 6.75% due Oct. 1, 2037 2,374,826 2,510,073

895,000 4.80% due Jul. 8, 2044 950,170 950,170Government National Mortgage Association

1,937 7.50% due Feb. 15, 2032 2,825 2,44227,891 7.00% due Dec. 15, 2034 34,118 34,21386,905 4.50% due Jun. 16, 2039 93,702 98,998

225,648 4.00% due Jan. 20, 2040 245,903 251,641175,491 3.50% due Feb. 20, 2040 190,457 189,736

3,174,058 3.50% due Feb. 20, 2040 3,486,842 3,458,741325,000 3.39% due Mar. 16, 2045 339,086 360,473371,813 2.13% due Apr. 16, 2045 373,531 393,911

1,021,700 1.75% due Jul. 16, 2047 1,033,209 1,065,091600,000 3.86% due Oct. 16, 2047 580,855 675,690

1,730,000 4.48% due Sep. 16, 2051 1,904,398 1,997,9142,905,235 5.47% due Nov. 20, 2059 3,254,816 3,326,2562,770,488 5.39% due Dec. 20, 2059 3,121,483 3,178,284

335,875 4.70% due Sep. 20, 2061 373,670 400,112349,982 5.07% due Apr. 20, 2062 408,356 409,929215,367 4.85% due May 20, 2062 250,309 252,183156,316 4.73% due Apr. 20, 2063 178,708 183,988179,320 4.65% due Dec. 1, 2099 198,152 214,38187,136 4.66% due Dec. 1, 2099 96,384 104,195

Government National MortgageAssociation II

256,818 3.50% due Jun. 20, 2040 268,569 291,5943,102,259 4.81% due Feb. 20, 2061 3,627,104 3,614,859

Government National MortgageAssociation II Reverse

329,432 4.50% due Jul. 20, 2061 345,859 389,205311,129 4.70% due Sep. 1, 2061 328,745 370,180

Great Plains Energy Inc. (callable)2,000,000 5.29% due Jun. 15, 2022-(Mar.15, 2022) 2,362,965 2,429,439


AverageCost ($)

CarryingValue ($)


GS Mortgage Securities Corp. IISeries 2005-GG4

825,000 4.78% due Jul.10, 2039 929,572 893,889Hewlett-Packard Company

2,133,000 6.00% due Sep. 15, 2041 2,467,145 2,625,255Homestar Mortgage Acceptance Corporation(callable)

608,577 0.60% due Oct. 25, 2034-(Jun. 25, 2016) 577,961 615,681Honda Auto Receivables Trust

58,380 0.88% due Sep. 21, 2015 61,306 62,386419,368 0.37% due Oct. 16, 2015 471,942 447,772

HSBC USA Inc.380,000 2.38% due Feb. 13, 2015 378,314 410,942

1,600,000 5.00% due Sep. 27, 2020 1,937,634 1,894,920Humana Inc.

820,000 6.45% due Jun. 1, 2016 928,562 965,1841,365,000 8.15% due Jun. 15, 2038 1,977,587 2,110,963

Hyundai Auto Receivables Trust713,059 0.72% due Mar. 15, 2016 756,275 761,644

1,694,075 2.45% due Dec. 15, 2016 1,852,317 1,814,887Hyundai Auto Receivables Trust 2011-B

263,462 1.65% due Feb. 15, 2017 295,342 282,193Hyundai Auto Receivables Trust 2013-A

49,830 0.40% due Dec. 15, 2015 55,095 53,206IndyMac INDX Mortgage Loan Trust(callable)

50,883 4.94% due Dec. 25, 2035-(Jun. 25, 2025) 60,255 44,988International Lease Finance Corporation

2,440,000 4.88% due Apr. 1, 2015 2,674,814 2,675,295Intesa Sanpaolo

3,655,000 2.38% due Jan. 13, 2017 3,999,056 3,959,733JP Morgan & Co

380,000 5.46% due Mar. 15, 2017 440,883 426,702JPMorgan Chase Commercial MortgageSecurities Corp.

419,182 5.81% due May 12, 2016 463,151 479,462485,000 6.85% due Apr. 15, 2035 542,859 524,193196,611 5.19% due Jan. 12, 2037 196,601 210,17427,584 4.70% due Jul. 15, 2042 27,412 29,468

935,000 5.99% due Jun. 15, 2049 1,067,702 1,047,963320,000 5.41% due Jul. 15, 2041 329,755 340,981495,000 6.08% due Feb. 12, 2051 613,756 595,752

JPMorgan Mortgage Trust (callable)110,588 3.21% due Sep. 25, 2035-(Jun. 25, 2018) 122,448 114,65716,369 5.24% due Jul. 25, 2035-(Sep. 25, 2020) 16,440 17,608

JPMorgan Mortgage Trust596,756 2.48% due May 25, 2034 634,349 643,119859,541 2.20% due Jul. 25, 2035 963,227 918,922156,482 2.61% due Oct. 25, 2036 136,293 148,839

Kimberly-Clark Corporation75,000 7.50% due Nov. 1, 2018 90,835 98,775

Kinder Morgan Energy Partners LP (callable)1,710,000 3.50% due Mar. 1, 2021-(Jan. 1, 2021) 1,883,028 1,831,1711,010,000 5.50% due Mar. 1, 2044-(Sep. 1, 2043) 1,110,687 1,152,647

La Paz County Industrial DevelopmentAuthority

1,150,000 7.00% due Mar. 1, 2034 1,196,871 1,214,607LB-UBS Commercial Mortgage Trust

304,586 4.48% due Oct. 15, 2029 326,535 327,3901,639,500 4.79% due Jul. 15, 2040 1,841,061 1,826,619

Lehman Brothers Holdings Inc.40,000 6.88% due May 2, 2018 40,417 4,362



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AverageCost ($)

CarryingValue ($)


Life Technologies Corporation2,490,000 6.00% due Mar. 1, 2020 3,134,576 3,105,341

Lloyds Banking Group plc2,075,000 7.50% due Jun. 27, 2024 2,399,504 2,347,619

Lorillard Tobacco Company2,342,000 6.88% due May 1, 2020 2,999,778 2,975,785

Master Adjustable Rate Mortgages Trust(callable)

12,820 2.45% due Dec. 25, 2033-(Jun. 25, 2014) 11,520 12,761Merrill Lynch Mortgage Investors Trust

101,516 2.57% due Dec. 25, 2034 89,036 107,857Merrill Lynch Mortgage Investors Trust,Series 2005

439,648 0.36% due Feb. 25, 2036 433,274 428,382Merrill Lynch Mortgage Trust

2,729,400 5.11% due Jul. 12, 2038 3,027,228 3,045,234264,169 5.69% due Feb. 12, 2051 274,510 316,297

Merrill Lynch Mortgage Trust 20061,000,000 5.78% due Aug. 12, 2043 1,162,622 1,166,766

MetLife, Inc. (callable)1,495,000 10.75% due Aug. 1, 2039-(2034) 2,314,394 2,556,854

MLCC Mortgage Investors, Inc.96,670 2.11% due May 25, 2036 87,797 101,483

Morgan Stanley440,000 0.71% due Oct. 15, 2015 393,561 469,031

1,430,000 5.00% due Nov. 24, 2025 1,567,965 1,638,884Morgan Stanley Capital I

1,850,000 5.37% due Dec. 15, 2016 2,229,546 2,172,240Morgan Stanley Capital I Trust

261,578 5.83% due Jun. 11, 2042 305,834 311,076705,000 5.20% due Aug. 13, 2042 790,614 779,149

1,254,838 5.77% due Apr. 12, 2049 1,396,922 1,363,981330,913 5.67% due Apr. 15, 2049 408,454 389,145

Morgan Stanley Dean Witter Capital27,488 6.79% due Jul. 15, 2033 27,057 29,545

Mortgage Linked Amort Note1,274,019 2.06% due Jan. 15, 2022 1,431,279 1,365,420

Municipal Electric Authority of Georgia660,000 6.64% due Apr. 1, 2057 716,611 863,153

1,330,000 7.06% due Apr. 1, 2057 1,485,629 1,556,046NCUA Guaranteed Notes

1,686,731 1.84% due Oct. 7, 2020 1,746,369 1,816,293Next Generation Network

225,051 2.40% due Dec. 8, 2020 223,494 243,698Nissan Auto Receivables 2011-B OwnerTrust

433,138 0.95% due Feb. 16, 2016 478,572 463,350Nokia Corporation

615,000 6.63% due May 15, 2039 566,766 718,715Nomura Asset Acceptance Corporation

17,272 4.79% due Mar. 25, 2035 21,671 18,440Nomura Holdings, Inc.

1,970,000 2.00% due Sep. 13, 2016 2,101,020 2,134,279NVR Inc. (callable)

870,000 3.95% due Sep. 15, 2022-(Jun.15, 2022) 871,882 937,760Oracle Corporation

1,010,000 4.30% due Jul. 8, 2034 1,077,517 1,077,086PacifiCorp (callable)

1,520,000 2.95% due Feb. 1, 2022-(Nov.1, 2021) 1,657,915 1,648,756Petrobras Global Finance B.V.

880,000 6.25% due Mar. 17, 2024 974,314 999,710275,000 5.63% due May 20, 2043 273,129 264,875


AverageCost ($)

CarryingValue ($)


Petrobras Global Finance B.V.(Floating Rate)

1,835,000 2.37% due Jan. 15, 2019 1,857,113 1,983,744Petroleos De Venezuela S.A.

450,000 4.90% due Oct. 28, 2014 443,336 477,718Petroleos Mexicanos

1,000,000 8.63% due Feb. 1, 2022 1,344,780 1,346,395Pfizer Inc.

1,980,000 6.20% due Mar. 15, 2019 2,547,492 2,519,571Regency Centers LP

95,000 5.88% due Jun. 15, 2017 98,153 113,723Renaissance Home Equity Loan Trust

156,108 5.61% due May 25, 2036 143,483 132,736168,170 5.68% due Jun. 25, 2037 113,403 90,409

Republic of Hungary2,000,000 5.38% due Mar. 25, 2024 2,198,496 2,301,726

Residential Asset Mortgage Products, Inc.(callable)

296 7.00% due Nov. 25, 2031 418 320Rio Tinto Finance USA PLC

815,000 1.38% due Jun. 17, 2016 826,472 879,020Rio Tinto Limited

1,340,000 3.50% due Mar. 22, 2022 1,461,868 1,467,704Rockwood Specialties Group Inc. (callable)

1,510,000 4.63% due Oct. 15, 2020-(2015) 1,678,468 1,685,448Royal Bank of Scotland

1,480,000 5.13% due May 28, 2024 1,603,824 1,614,257RSB Bondco LLC

50,441 5.72% due Apr. 1, 2018 54,648 55,936Santander Drive Auto Receivables Trust

224,244 0.27% due Jan. 15, 2015 242,374 239,4035,000 2.35% due Nov. 16, 2015 5,337 5,345

24,870 2.66% due Jan. 15, 2016 24,327 26,590120,912 0.47% due Mar. 15, 2016 124,352 129,072

1,716,007 1.08% due Apr. 15, 2016 1,900,430 1,832,8631,029,398 2.72% due May 15, 2016 1,065,128 1,101,358

747,707 0.62% due Jul. 15, 2016 819,898 798,4431,035,881 1.04% due Aug. 15, 2016 1,100,302 1,106,602

236,709 2.09% due Aug. 15, 2016 263,776 253,2421,766,363 0.55% due Sep. 15, 2016 1,895,472 1,886,0042,615,290 0.62% due Jun. 15, 2017 2,860,992 2,792,6592,155,000 0.70% due Sep. 15, 2017 2,321,821 2,302,025

275,000 1.16% due Jan. 15, 2019 271,490 293,792Santander Drive Auto Receivables Trust2012-5

2,392,921 0.83% due Dec. 15, 2016 2,622,220 2,555,884Santander Drive Auto Receivables Trust2013-4

662,828 0.89% due Sep. 15, 2016 724,229 708,222Sequoia Mortgage Trust (callable)

186,550 0.45% due Dec. 20, 2034-(Feb. 20, 2018) 174,509 191,208Sequoia Mortgage Trust (Floating Rate)

579,383 0.69% due Oct. 20, 2034 543,137 604,956SLM Student Loan Trust

1,641,487 0.41% due Mar. 15, 2023 1,580,991 1,737,359Smart Trust

90,389 0.67% due Jun. 14, 2015 93,262 96,4921,860,000 0.97% due Mar. 14, 2017 1,823,719 1,992,616

Sprint Capital Corporation3,285,000 8.75% due Mar. 15, 2032 3,901,513 4,091,758



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AverageCost ($)

CarryingValue ($)


Structured Adjustable Rate Mortgage Loan(callable)

8,934 5.50% due Dec. 25, 2034-(Sep. 25, 2016) 10,774 8,970Structured Asset Mortgage Investments Inc.

577,476 0.84% due May 19, 2035 563,793 566,127Structured Asset Securities Corporation(callable)

240,915 2.65% due Nov. 25, 2033-(Oct. 25, 2020) 233,900 255,269Symantec Corporation (callable)

550,000 2.75% due Jun. 15, 2017-(May 15, 2017) 615,972 603,789TD Ameritrade Holding Corp

460,000 4.15% due Dec. 1, 2014 490,312 498,487Telefonos de Mexico, S.A.B. de C.V.

290,000 5.50% due Jan. 27, 2015 328,133 317,370Tennessee Gas Pipeline

490,000 8.38% due Jun. 15, 2032 656,899 732,015Teva Pharmaceutical Industries Ltd.

1,445,000 2.95% due Dec. 18, 2022 1,512,946 1,486,053Time Warner Cable Inc.

1,575,000 5.00% due Feb. 1, 2020 1,922,273 1,890,104760,000 6.55% due May 1, 2037 985,833 1,012,979

95,000Timken Company, The6.00% due Sep. 15, 2014 104,048 102,407

1,740,000Total Capital SA2.13% due Aug. 10, 2018 1,858,788 1,893,220

2,565,000Transocean Ltd.6.38% due Dec. 15, 2021 3,053,330 3,171,702

355,000Tyco Electronics Group SA6.55% due Oct. 1, 2017 386,475 438,385

10,450,000United States Treasury Notes0.38% due May 31, 2016 11,409,547 11,138,987

1,070,000 0.88% due Jun. 15, 2017 1,157,333 1,142,0185,435,000 1.63% due Jun. 30, 2019 5,783,827 5,799,0191,395,000 2.00% due May 31, 2021 1,501,976 1,477,150

560,000 2.13% due Jun. 30, 2021 597,155 597,25023,670,000 2.50% due May 15, 2024 25,344,897 25,210,8832,830,000 3.63% due Feb. 15, 2044 3,197,598 3,181,700

510,000UnitedHealth Group Incorporated (callable)3.88% due Oct. 15, 2020-(Jul. 15, 2020) 598,616 582,702

665,000Vale Overseas Limited4.38% due Jan. 11, 2022 670,376 728,879

1,990,000 8.25% due Jan. 17, 2034 2,609,082 2,650,963

1,510,000Vale SA5.63% due Sep. 11, 2042 1,403,176 1,584,208

940,000Validus Holdings Ltd.8.88% due Jan. 26, 2040 1,372,893 1,436,986

5,265,000Verizon Communications Inc.5.15% due Sep. 15, 2023 5,968,781 6,344,181

2,230,000 6.55% due Sep. 15, 2043 2,788,777 2,996,537

12,050,000Verizon Communications Inc. (callable)1.48% due Feb. 15, 2054-(2019) 3,346,519 3,328,041

2,204,050Volkswagen Auto Lease Trust0.87% due Jul. 20, 2015 2,344,702 2,356,091

3,165Wachovia Bank Commercial Mortgage Trust5.21% due Dec. 15, 2035 3,337 3,380

600,000 5.27% due Aug. 15, 2041 643,853 640,939

1,775,000Wachovia Capital Trust III5.57% due Mar. 29, 2049 1,835,684 1,843,948

219,093Washington Mutual, Inc.2.42% due Oct. 25, 2033 206,876 239,766

2,055,000Weatherford International Ltd.5.13% due Sep. 15, 2020 2,407,358 2,451,272

FaceValue ($)/Number ofShares Issuer

AverageCost ($)

CarryingValue ($)


1,265,000Wells Fargo & Company4.10% due Jun. 3, 2026 1,386,848 1,374,119

124,322

Wells Fargo Mortgage Backed SecuritiesTrust (callable)6.00% due Jun. 25, 2036-(Sep. 25, 2018) 115,279 129,743

59,360 2.61% due Oct. 25, 2035-(Feb. 25, 2019) 60,790 57,467125,303 2.61% due Sep. 25, 2034-(Oct. 25, 2018) 115,591 136,222113,392 5.02% due Mar. 25, 2036-(Sep. 25, 2015) 116,548 120,33096,540 2.61% due Mar. 25, 2035-(Sep. 25, 2019) 85,295 104,16240,348 2.61% due Jul. 25, 2036-(Nov. 25, 2020) 30,858 43,446

20,111

Wells Fargo Mortgage Backed SecuritiesTrust6.00% due Jul. 25, 2037 20,485 21,895

1,580,000WF-RBS Commercial Mortgage Trust3.66% due Mar. 15, 2047 1,805,889 1,769,309

927,000Williams Partners LP7.25% due Feb. 1, 2017 1,144,725 1,130,703

720,000Williams Partners LP (callable)4.30% due Mar. 4, 2024-(Dec. 4, 2023) 804,718 801,576

360,000Willis Group Holdings Limited4.13% due Mar. 15, 2016 375,769 401,992

1,220,000Wyeth LLC6.45% due Feb. 1, 2024 1,642,063 1,615,484

630,000XL Group Plc5.25% due Sep. 15, 2014 668,068 678,547

580,000Yum! Brands, Inc.4.25% due Sep. 15, 2015 623,218 643,984

536,394,182 539,572,380

TOTAL BOND AND DEBENTUREINSTRUMENTS 590,089,638 594,383,347

EQUITIES – 0.0%3 NRG Energy, Inc. 69 119


Currency Forward Contracts - 0.1% 703,530OTHER ASSETS, LESS LIABILITIES - (5.9)% (33,194,098)

NET ASSETS - 100.0% 561,892,898



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CURRENCY FORWARD CONTRACTS

Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at

June 30, 2014 ($)

Canadian ($)Appreciation/

(Depreciation)

Jul. 31, 2014 Canadian Dollar 521,186,461 U.S. Dollar 487,367,996 520,436,533 749,928Jul. 31, 2014 Norwegian Krone 9,729,864 U.S. Dollar 1,584,694 1,692,692 (406)Jul. 31, 2014 U.S. Dollar 4,351,864 British Pound 2,556,161 4,664,393 (21,612)Jul. 31, 2014 U.S. Dollar 5,161,125 European Euro 3,791,218 5,538,804 (32,664)Jul. 31, 2014 U.S. Dollar 907,842 Japanese Yen 92,297,079 972,039 (3,510)Jul. 31, 2014 U.S. Dollar 9,910,521 New Zealand Dollar 11,325,676 10,548,595 24,432Jul. 31, 2014 U.S. Dollar 2,374,442 South African Rand 25,407,720 2,533,206 (36)Jul. 31, 2014 U.S. Dollar 1,389,149 Swedish Krona 9,366,058 1,494,614 (12,602)

703,530

The currency forward contracts outstanding at June 30, 2014 are placed with a financial institution with a credit rating of A- by Standard & Poor's.



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns and to provide income as well as capital growth by investing

primarily in a portfolio of U.S. government and corporate bonds and mortgage pass through securities. The Fund may invest inthe U.S. dollar denominated emerging markets, non-investment grade debt and non-U.S. investment grade sovereign andcorporate debt. As well, the Fund’s investments may also include short-term instruments, cash equivalents, U.S. denominatedasset-backed securities and mortgage-backed securities. The Fund’s investments in bonds will have an average credit rating ofat least single A.

















Less than 1 year $ 9,237,217 $ 8,223,498 $ 14,447,286

1-3 years 110,822,270 66,270,524 41,228,406

3-5 years 47,793,223 33,968,713 31,436,667

5-10 years 146,000,824 109,293,411 67,916,448

> 10 years 280,529,813 202,665,309 125,867,722

Total $594,383,347 $420,421,455 $280,896,529

* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying funds and preferred shares as applicable.

As at June 30, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve andall other variables held constant, net assets attributable to holders of redeemable units would have decreased or increased,respectively, by $9,362,471 or approximately 1.7% of total Net assets attributable to holders of redeemable units (December 31,2013 – $6,728,192 or approximately 1.6% net assets attributable to holders of redeemable units, January 1, 2013 – $4,266,507 orapproximately 1.6% of total net assets attributable to holders of redeemable units). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

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ii) Currency risk

The table below indicates the currency to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary assets of the Fund. The Fund did not hold any non-monetary items which were exposed to currency risk. The table also illustrates the potential impact on the net assets attributable toholders of redeemable units if the Canadian dollar had strengthened or weakened by 10% in relation to each of the other currencies,with all other variables held constant.

June 30, 2014






US Dollar 140,580,601 25.0 14,058,060 2.5

Mexican Peso 10,553,618 1.9 1,055,362 0.2

Indonesian Rupiah 3,681,735 0.7 368,174 0.1

Romanian New Leu 3,624,446 0.6 362,445 0.1

New Zealand Dollar 2,580,273 0.5 258,027 0.1

Hungary Forint 2,377,835 0.4 237,784 0.0

Norwegian Krone 2,240,525 0.4 224,053 0.0

Indian Rupee 2,227,579 0.4 222,758 0.0

Australian Dollar 1,670,209 0.3 167,021 0.0

British Pound 1,579,760 0.3 157,976 0.0

European Euro 1,314,019 0.2 131,402 0.0

Swedish Krona 83,434 0.0 8,343 0.0

South African Rand 40,763 0.0 4,076 0.0

Japanese Yen 39,186 0.0 3,919 0.0

Total 172,593,983 30.7 17,259,400 3.0

December 31, 2013






U.S. Dollar 33,968,329 8.2 3,396,833 0.8

Mexican Peso 5,464,407 1.3 546,441 0.1


Russian Ruble 3,215,645 0.8 321,565 0.1

Thai Baht 2,975,161 0.7 297,516 0.1

Uruguayan Peso 2,293,380 0.6 229,338 0.1

Hungary Forint 1,786,225 0.4 178,623 0.0

Colombia Peso 1,717,790 0.4 171,779 0.0

Swedish Krona 1,502,946 0.4 150,295 0.0


British Pound 1,051,839 0.3 105,184 0.0

Norwegian Krone 1,029,134 0.2 102,913 0.0

Philippines Peso 1,026,987 0.2 102,699 0.0

South African Rand 848,529 0.2 84,853 0.0

Polish Zloty 751,158 0.2 75,116 0.0

Japanese Yen 76,757 0.0 7,676 0.0

Swiss Franc 8,341 0.0 834 0.0

Australian Dollar (85,637) 0.0 (8,564) 0.0

European Euro (167,782) 0.0 (16,778) 0.0

Total 63,485,818 15.4 6,348,584 1.3 BO

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January 1, 2013






U.S. Dollar 11,572,262 4.2 1,157,226 0.4

Mexican Peso 4,024,405 1.5 402,441 0.2

Hungary Forint 1,835,904 0.7 183,590 0.1

Uruguayan Peso 1,656,994 0.6 165,699 0.1

Colombia Peso 1,178,733 0.4 117,873 0.0


Thai Baht 1,141,846 0.4 114,185 0.0

Chile Peso 868,950 0.3 86,895 0.0

Philippines Peso 749,748 0.3 74,975 0.0

Indonesian Rupiah 631,353 0.2 63,135 0.0

Australian Dollar 536,582 0.2 53,658 0.0

Norwegian Krone 172,297 0.1 17,230 0.0

Peruvian New Sol 168,410 0.1 16,841 0.0

Swedish Krona (15,094) 0.0 (1,509) 0.0

Brazilian Real (27,018) 0.0 (2,702) 0.0

British Pound (82,362) 0.0 (8,236) 0.0

European Euro (89,778) 0.0 (8,978) 0.0

Polish Zloty (503,414) (0.2) (50,341) 0.0

Japanese Yen (1,518,059) (0.6) (151,806) (0.1)

Total 23,463,092 8.6 2,346,309 0.7

iii) Credit risk







redeemableunits (%)





redeemableunits (%)





redeemableunits (%)

A– to AAA+ 69.8 73.8 76.4 77.1 75.8 78.0

B– to BBB+ 27.2 28.8 22.8 23.2 22.6 23.3

C– to CCC+ 0.3 0.3 0.6 0.6 1.2 1.2

D– to DDD+ – – 0.1 0.1 0.1 0.1

Unrated 2.7 2.9 0.1 0.1 0.3 0.3

Total 100.0 105.8 100.0 101.1 100.0 102.9

iv) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $151,903,088 $ – $86,604,740 $ – $53,342,709

Unrealized loss on currency forward contracts – 70,830 – 904,317 – 357,418

Redeemable units 561,892,898 415,677,206 – 273,073,823 –

$561,892,898 $151,973,918 $415,677,206 $87,509,057 $273,073,823 $53,700,127BO

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Bond and Debenture Instruments

Australian Dollar 0.3 0.8 0.4

British Pound 1.1 0.3 0.7

Chile Peso – – 0.3

Columbia Peso – 0.4 0.4

European Euro 1.2 0.8 1.1

Hungarian Forint 0.4 0.4 0.4

Indonesian Rupiah 1.1 0.3 0.2

Japanese Yen 0.2 0.2 0.4

Mexican Peso 1.7 1.5 1.4

New Zealand Dollar 2.3 1.2 0.4

Norwegian Krone 0.1 0.6 0.4

Peruvian Nuevo Sol – – 0.1

Philippine Peso – 0.3 0.3

Romanian New Leu 0.6 – –

Polish Zloty – – 0.7

Russian Ruble – 0.8 –

South African Rand 0.5 0.2 –

Swedish Krona 0.3 0.4 –

Thai Baht – 0.7 0.4

Uruguayan Peso – 0.6 0.6

U.S. Dollar 96.0 91.6 94.7

Equities 0.0 0.0 0.0

Currency Forward Contracts 0.1 (0.2) 0.1




Equities $119 $ – $ – $ 119

Bond and Debenture Instruments – 594,383,347 – 594,383,347

Currency Forward Contracts–Assets – 774,360 – 774,360

119 595,157,707 – 595,157,826

Currency Forward Contracts–Liabilities – (70,830) – (70,830)

$119 $595,086,877 $ – $595,086,996

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Equities $92 $ – $ – $ 92



92 420,448,741 – 420,448,833


$92 $419,544,424 $ – $419,544,516


Equities $69 $ – $ – $ 69



69 281,565,559 – 281,565,628


$69 $281,208,141 $ – $281,208,210


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Scotia Private Strategic Balanced Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $37,509,559 $32,931,949 $32,369,057Cash 120,651 615,581 582,498Accrued investment income 78,184 66,688 84,688Receivable for securities sold – 33,419 –Subscriptions receivable 95,836 – 16,876

37,804,230 33,647,637 33,053,119

LIABILITIESCurrent liabilitiesPayable for securities purchased 9,012 – 1,514Distributions payable 2,555 – –Redemptions payable – 674 7,884Accrued expenses 9,872 – –Unrealized loss on currency

spot contracts – – 4

21,439 674 9,402



Pinnacle Series Units $37,020,735 $33,060,193 $32,715,640Series F Units $ 762,056 $ 586,770 $ 328,077

UNITS OUTSTANDINGPinnacle Series Units 2,133,765 2,022,256 2,218,038Series F Units 43,323 35,496 21,991


Pinnacle Series Units $ 17.35 $ 16.35 $ 14.75Series F Units $ 17.59 $ 16.53 $ 14.92


2014 2013


Dividends $ 288,513 $ 233,852Interest for distribution purposes 182,207 189,460Net realized gain (loss) on non-derivative financial assets 341,202 10,870Net gain (loss) foreign exchange (1,120) 2,921Change in unrealized appreciation (depreciation) of non-

derivative financial assets 1,727,588 371,465Change in unrealized appreciation (depreciation) of

currency spots – (3)

Net gain (loss) on investments 2,538,390 808,565Securities lending 2,976 4,294

Total income (loss) 2,541,366 812,859

EXPENSESManagement fees (note 5) 3,219 2,492Harmonized Sales Tax/Goods and Services Tax 5,119 5,265Audit fees 301 443Independent Review Committee fees 56 99Custodian fees 10,893 6,179Filing fees 7,919 7,635Legal fees 315 335Unitholder reporting costs 3,009 4,463Unitholder administration and service fees 26,041 30,463Foreign withholding taxes/tax reclaims 9,548 2,797Transaction costs 4,209 4,892



Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $2,472,303 $ 749,607


Pinnacle Series Units $2,427,342 $ 741,887Series F Units $ 44,961 $ 7,720


Pinnacle Series Units $ 1.19 $ 0.35Series F Units $ 1.18 $ 0.23

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 2,036,577 2,105,729Series F Units 38,055 33,487


Portfolio Advisor: Gryphon Investment Counsel Inc.


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Scotia Private Strategic Balanced Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $33,060,193 $32,715,640Series F Units 586,770 328,077

33,646,963 33,043,717


Pinnacle Series Units 2,427,342 741,887Series F Units 44,961 7,720

2,472,303 749,607


Pinnacle Series Units (389,227) (405,015)Series F Units (4,444) (4,423)

(393,671) (409,438)



Reinvested distributionsPinnacle Series Units 385,525 404,776Series F Units 3,670 3,764

Payments on redemptionPinnacle Series Units (2,385,026) (4,230,405)

2,057,196 (2,101,603)


Pinnacle Series Units 3,960,542 (1,965,182)Series F Units 175,286 203,748

4,135,828 (1,761,434)



$37,782,791 $31,282,283


2014 2013


redeemable units $ 2,472,303 $ 749,607Adjustments For:

Net realized gain (loss) on sale of non-derivative financialassets (341,202) (10,870)

Net realized gain (loss) foreign exchange on cash 1,120 (2,921)Change in unrealized appreciation (depreciation) on sale

of non-derivative financial assets (1,727,588) (371,465)Change in unrealized appreciation (depreciation) of

currency spot contracts – 3Purchases of non-derivative financial assets (7,412,435) (6,605,329)Proceeds from sale of non-derivative financial assets 4,941,837 8,289,146Transaction costs 4,209 4,892Accrued investment income (11,496) 16,028Accrued expenses 9,872 8,320

Net cash provided by (used in) operating activities (2,063,380) 2,077,411

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 3,957,191 1,736,825Amounts paid on redemption of redeemable units (2,385,700) (4,236,061)Distributions to unitholders of redeemable units (1,921) (509)

Net cash provided by (used in) financing activities 1,569,570 (2,499,745)Net gain (loss) foreign exchange on cash (1,120) 2,921Net increase (decrease) in cash (493,810) (422,334)Cash at beginning of period 615,581 582,498


Interest received(1) 178,427 204,148Dividends received, net of withholding taxes(1) 271,249 232,398




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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2014Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES – 60.8%Canadian Equities – 44.5%Energy – 9.4%

6,340 Calfrac Well Services Ltd. 49,352 126,48313,630 Canadian Natural Resources Ltd. 416,333 668,27917,635 Cenovus Energy Inc. 515,430 609,9951,960 EnCana Corporation 37,385 49,5497,480 Husky Energy Inc. 222,241 257,761

13,226 Lightstream Resources Ltd. 228,469 107,9244,955 MEG Engery Corporation 153,120 192,700

23,945 Suncor Energy, Inc. 802,080 1,089,49819,465 Talisman Energy Inc. 317,672 219,5654,800 Trican Well Service Ltd. 85,562 82,704

11,485 Trinidad Drilling Ltd. 79,715 139,083

2,907,359 3,543,541

Materials – 6.0%2,925 Agrium Inc. 169,622 285,919

16,240 Canexus Corp. 79,256 79,57625,404 First Quantum Minerals Ltd. 522,355 579,71917,620 HudBay Minerals, Inc. 153,100 173,90932,075 Lundin Mining Corporation 242,599 188,28013,520 Potash Corporation of Saskatchewan Inc. 555,266 548,64217,575 Teck Resources Ltd., Class B 459,566 428,127

2,181,764 2,284,172

Industrials – 4.3%21,545 CAE, Inc. 216,664 300,7686,420 Canadian National Railway Company 287,629 445,548

12,525 Finning International Inc. 284,656 373,7469,805 Horizon North Logistics Inc. 78,340 75,1064,140 SNC-Lavalin Group Inc. 199,242 232,3373,180 Stantec Inc. 86,598 210,134

1,153,129 1,637,639

Consumer Discretionary – 4.1%10,535 Gildan Activewear Inc. 217,125 662,3355,145 Magna International Inc. 207,269 590,9556,915 Martinrea International Inc. 74,452 87,6828,230 Quebecor Inc., Class B 90,754 212,499

589,600 1,553,471

Consumer Staples – 2.3%16,580 Alimentation Couche-Tard Inc., Class B 103,666 484,6339,625 Jean Coutu Group (PJC) Inc., The, Class A 125,548 218,1033,425 Loblaw Companies Limited 160,322 163,099

389,536 865,835

Financials – 15.0%10,835 Bank of Montreal 527,872 851,41414,780 Bank of Nova Scotia, The 683,016 1,051,4495,545 Canadian Imperial Bank of Commerce 370,294 538,4207,600 Home Capital Group Inc. 218,741 363,508

22,455 Manulife Financial Corporation 587,229 476,27115,865 Royal Bank of Canada 759,492 1,210,18221,135 Toronto-Dominion Bank, The 833,010 1,160,946

3,979,654 5,652,190

Information Technology – 3.4%21,170 Celestica Inc. 214,886 284,10112,660 CGI Group Inc., Class A 145,015 478,80111,840 Descartes Systems Group Inc., The 139,447 181,0344,630 Open Text Corporation 128,396 237,056

13,970 Pure Technologies Ltd. 70,461 99,886

698,205 1,280,878

TOTAL CANADIAN EQUITIES 11,899,247 16,817,726

Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITES – 16.3%United States – 7.5%Materials – 0.9%

3,035 Dow Chemical Company, The 144,942 166,5731,065 Praxair, Inc. 112,353 150,904

257,295 317,477

Industrials – 2.3%1,940 Danaher Corporation 109,538 162,9051,325 Dover Corporation 87,977 128,5431,880 H.B. Fuller Comapny 55,967 96,4731,335 Honeywell International Inc. 83,889 132,3481,745 Stanley Black & Decker Inc. 157,049 163,4622,250 Wabtec Corporation 86,042 198,190

580,462 881,921

Consumer Discretionary – 0.9%18,680 Office Depot, Inc. 106,206 113,3952,440 TJX Companies, Inc., The 72,460 138,3551,005 Yum! Brands, Inc. 56,787 87,045

235,453 338,795

Health Care – 1.0%1,475 Johnson & Johnson 102,227 164,5751,545 ResMed Inc. 51,880 83,4521,430 Varian Medical Systems, Inc. 92,678 126,838

246,785 374,865

Financials – 1.1%1,740 American Express Company 95,009 176,0811,940 JPMorgan Chase & Co. 86,030 119,1831,915 MetLife, Inc. 111,534 113,469

292,573 408,733

Information Technology – 1.3%1,325 Anixter International Inc. 96,660 141,4352,380 Cognizant Technology Solutions Corporation 84,171 124,1876,280 Corning Incorporated 103,806 147,061

360 Mettler-Toledo International Inc. 62,117 97,270

346,754 509,953

TOTAL UNITED STATES EQUITIES 1,959,322 2,831,744

Belgium – 0.1%495 UCB SA 36,951 44,674

Denmark – 0.0%353 GN Store Nord A/S 10,176 10,790

France – 1.6%1,218 Airbus Group NV 46,053 87,212

959 Atos Origin SA 53,744 85,2851,704 BNP Paribas 106,873 123,340

570 Schneider Electric SA 31,638 57,351562 Technip SA 45,576 65,673719 Teleperformance 28,354 47,057

1,823 Total SA 115,135 140,513

427,373 606,431

Germany – 1.1%527 Adidas-Salomon AG 29,843 56,947

2,278 Deutsche Lufthansa AG 47,936 52,1761,037 Fresenius SE & Co. KGaA 98,105 164,981

527 Lanxess AG 42,212 37,927549 MTU Aero Engines Holding AG 25,697 53,890487 Wacker Chemie AG 61,883 60,001

305,676 425,922



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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITES (cont’d)Hong Kong – 0.5%

9,200 AIA Group Ltd. 49,245 49,39113,900 Kingboard Chemicals Holdings Limited 39,713 30,58344,000 Li & Fung Limited 73,569 69,5265,500 Yue Yuen Industrial (Holdings) Limited 16,811 19,653

179,338 169,153

Japan – 2.5%1,600 Bridgestone Corporation 40,170 59,8231,700 Canon Inc. 61,067 59,3671,100 Hamamatsu Photonics KK 27,733 57,6679,000 Hitachi, Ltd. 65,067 70,4631,300 Honda Motor Co., Ltd. 44,899 48,5142,700 Komatsu Ltd. 54,685 66,9823,900 Kuraray Co., Ltd. 46,129 52,8182,100 Nabtesco Corporation 45,474 49,6201,100 NIDEC Corporation 42,610 72,1552,900 ORIX Corporation 47,233 51,2411,600 Seven & I Holdings Co., Ltd. 46,925 72,0341,300 Stanley Electric Co., Ltd. 28,633 36,2332,100 Terumo Corporation 54,242 50,1939,000 Toray Industries Inc. 64,799 63,2254,000 Toto Ltd. 28,954 57,6201,100 Toyota Motor Corporation 70,768 70,594

769,388 938,549

Netherlands – 1.3%753 Gemalto NV 35,549 83,226

1,096 Heineken NV 78,279 83,9468,933 ING Groep NV 94,644 133,7153,241 Koninklijke Ahold NV 58,739 64,8771,214 Nutreco NV 28,717 57,1901,488 Unilever NV 50,492 69,436

346,420 492,390

Spain – 0.3%639 Industria de Diseno Textil SA 43,926 105,116

Sweden – 0.3%1,310 Hexagon AB 19,142 44,9866,067 Telefonaktiebolaget LM Ericsson, Class B 65,862 78,222

85,004 123,208

Switzerland – 0.7%818 Adecco SA 43,536 71,75884 Dufry AG 15,716 16,29448 Galenica AG 29,182 49,969

1,325 Novartis AG 73,430 128,037

161,864 266,058

United Kingdom – 0.4%15,028 Barclays PLC 59,095 58,3987,424 DS Smith PLC 42,393 37,4681,030 Weir Group PLC, The 26,530 49,190

128,018 145,056

TOTAL FOREIGN EQUITIES 4,453,456 6,159,091

TOTAL EQUITIES 16,352,703 22,976,817


AverageCost ($)

CarryingValue ($)


Government of Canada200,000 1.00% due Nov. 1, 2015 199,698 199,926

2,625,000 2.00% due Jun. 1, 2016 2,685,349 2,669,8961,475,000 1.50% due Mar. 1, 2017 1,490,635 1,488,1472,425,000 4.25% due Jun. 1, 2018 2,607,190 2,688,049

800,000 1.75% due Mar. 1, 2019 806,400 807,9521,550,000 2.75% due Jun. 1, 2022 1,632,520 1,636,2952,050,000 5.75% due Jun. 1, 2029 2,679,350 2,864,771

12,101,142 12,355,036

Corporate Bonds – 0.6%Brilliant Power Funding Corporation

56,395 5.67% due May 31, 2026 60,148 65,364Pearson International Fuel Facilities Corporation

67,410 5.09% due Mar. 9, 2032 67,299 69,749Royal Bank Scotland6.67% due Oct. 15, 2017 82,963 96,262

210,410 231,375

TOTAL BOND AND DEBENTURE INSTRUMENTS 12,311,552 12,586,411


0.90% to 0.94% due fromJul. 31, 2014 to Oct. 23, 2014 1,943,835 1,946,331



NET ASSETS – 100.0% 37,782,791



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns through a combination of capital growth and income by

investing primarily in large capitalization stocks of Canadian corporations and Canadian government bonds. The weighting ofthe Fund’s portfolio will be allocated between asset classes within specified ranges: 40%-80% equities, 20%-60% fixed incomesecurities, and 0%-30% short-term money market securities and cash.









Comprehensive income as reported under Canadian GAAP $743,629


Increase (decrease) in net assets attributable to holders of redeemable units $749,607






Less than 1 year $ – $ – $ –

1-3 years 4,357,969 5,899,962 6,225,453

3-5 years 3,592,263 2,759,424 76,262

5-10 years 1,636,295 805,659 3,817,068

> 10 years 2,999,884 2,859,529 3,343,877

Total $12,586,411 $12,324,574 $13,462,660

* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying funds, and preferred shares as applicable.

As at June 30, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve andall other variables held constant, Net Assets would have decreased or increased, respectively, by $194,491 or approximately 0.5% oftotal Net assets attributable to holders of redeemable units (December 31, 2013 – $161,279 or approximately 0.5% Net assetsattributable to holders of redeemable units, January 1, 2013 – $196,266 or approximately 0.6% of total Net assets attributable toholders of redeemable units). In practice, actual results may differ from this sensitivity analysis and the difference could be material.

ii) Currency risk

The table below indicates the currency to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The table also

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illustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.

June 30, 2014






US Dollar 2,836,715 7.5 283,672 0.8

European Euro 1,687,132 4.5 168,713 0.5

Japanese Yen 944,118 2.5 94,412 0.3

Swiss Franc 275,542 0.7 27,554 0.1

Hong Kong Dollar 172,393 0.5 17,239 0.1

British Pound 145,855 0.4 14,586 0.0

Swedish Krona 123,643 0.3 12,364 0.0

Danish Krone 10,790 0.0 1,079 0.0

Total 6,196,188 16.4 619,619 1.8

December 31, 2013






US Dollar 2,355,068 7.0 235,507 0.7

European Euro 1,598,870 4.8 159,887 0.5

Japanese Yen 790,485 2.3 79,049 0.2

Swiss Franc 248,399 0.7 24,840 0.1

Hong Kong Dollar 167,094 0.5 16,709 0.1

Swedish Krona 101,004 0.3 10,100 0.0

British Pound 98,786 0.3 9,879 0.0


Total 5,377,548 16.0 537,755 1.6

January 1, 2013






US Dollar 1,715,126 5.2 171,513 0.5

European Euro 1,293,197 3.9 129,320 0.4

Japanese Yen 551,956 1.7 55,196 0.2

Swiss Franc 181,894 0.6 18,189 0.1

Hong Kong Dollar 178,632 0.5 17,863 0.1

British Pound 130,816 0.4 13,082 0.0

Swedish Krona 126,296 0.4 12,630 0.0


Total 4,195,382 12.8 419,538 1.3


Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting amarket or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2014,approximately 60.8% (December 31, 2013 – 59.9%, January 1, 2013 – 55.0%) of the Fund’s net assets attributable to holders ofredeemable units were exposed to other price risk. If prices of these investments had decreased or increased by 10%, with all othervariables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased,

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respectively, by approximately $2,297,682 (December 31, 2013 – $2,014,168, January 1, 2013 – $1,808,402). In practice, actual resultswill differ from this sensitivity analysis and the difference could be material.

i) Credit risk







redeemableunits (%)





redeemableunits (%)





redeemableunits (%)

A– to AAA+ 99.2 33.0 99.3 36.4 99.4 40.6

B– to BBB+ 0.8 0.3 0.7 0.3 0.6 0.2

Total 100.0 33.3 100.0 36.7 100.0 40.8

ii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $21,439 $ – $674 $ – $9,398

Unrealized loss on currency spot contracts – – – – – 4


$37,782,791 $21,439 $33,646,963 $674 $33,043,717 $9,402


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Scotia Private Strategic Balanced Pool (Unaudited –Continued)


iii) Concentration risk




Canadian Equities

Energy 9.4 9.3 9.7

Materials 6.0 5.6 6.5

Industrials 4.3 3.6 3.4

Consumer Discretionary 4.1 3.8 3.3

Consumer Staples 2.3 2.0 1.5

Financials 15.0 15.2 13.5

Information Technology 3.4 3.9 2.6

Telecommunication Services – 0.5 1.6

United States Equities 7.5 7.0 5.2

Australia Equities – 0.1 0.1

Belgium Equities 0.1 0.1 –

Denmark Equities 0.0 – –

France Equities 1.6 1.3 1.3

Germany Equities 1.1 1.3 1.0

Hong Kong Equities 0.4 0.5 0.5

Italy Equities – 0.1 0.1

Japan Equities 2.5 2.4 1.7

Netherlands Equities 1.3 1.6 1.3

Spain Equities 0.3 0.3 0.3

Sweden Equities 0.3 0.3 0.4

Switzerland Equities 0.7 0.7 0.6

United Kingdom Equities 0.4 0.3 0.4

Bond and Debenture Instruments 33.3 36.7 40.8


iv) Fair value classification (note 2)



Equities $19,649,470 $ 3,327,347 $ – $22,976,817



$19,649,470 $17,860,089 $ – $37,509,559


Equities $17,135,716 $ 3,022,477 $ – $20,158,193


Money Market Instruments – 449,182 – 449,182

$17,135,716 $15,796,233 $ – $32,931,949

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Equities $15,625,935 $ 2,481,782 $ – $18,107,717



15,625,935 16,743,122 – 32,369,057

Currency Spot Contracts – Liabilities (4) – – (4)

$15,625,931 $16,743,122 $ – $32,369,053


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Scotia Private Canadian Value Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $128,327,817 $113,949,384 $95,278,305Cash 5,975 22,893 97,377Accrued investment income 454,048 343,081 358,751Subscriptions receivable 282,089 72,091 25,456

129,069,929 114,387,449 95,759,889

LIABILITIESCurrent liabilitiesRedemptions payable 47,220 119,519 21,638Accrued expenses 15,113 – –

62,333 119,519 21,638



Pinnacle Series Units $116,761,045 $102,750,821 $85,710,109Series F Units $ 744,763 $ 647,289 $ 486,971Series I Units $ 11,501,788 $ 10,869,820 $ 9,541,171

UNITS OUTSTANDINGPinnacle Series Units 5,082,033 5,009,436 4,641,593Series F Units 32,805 31,767 26,528Series I Units 489,417 518,352 505,435




2014 2013


Dividends $ 1,835,306 $ 1,473,011Interest for distribution purposes 10,999 6,256Net realized gain (loss) on non-derivative financial assets 2,672,204 2,832,588Net gain (loss) foreign exchange – (91)Change in unrealized appreciation (depreciation) of non-

derivative financial assets 9,463,186 (5,873,671)

Net gain (loss) on investments 13,981,695 (1,561,907)Securities lending 1,932 7,154Other income – 260


EXPENSESManagement fees (note 5) 3,330 2,721Harmonized Sales Tax/Goods and Services Tax 6,852 8,290Audit fees 1,256 1,259Independent Review Committee fees 191 297Custodian fees 2,215 2,452Filing fees 8,604 8,281Legal fees 1,078 983Unitholder reporting costs 4,807 6,724Unitholder administration and service fees 56,981 64,226Overdraft charges – 96Foreign withholding taxes/tax reclaims – 2,226Transaction costs 25,546 24,017


Net expenses 109,672 120,061

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $13,873,955 $(1,674,554)


Pinnacle Series Units $12,510,581 $(1,506,219)Series F Units $ 73,876 $ (14,802)Series I Units $ 1,289,498 $ (153,533)


Pinnacle Series Units $ 2.47 $ (0.32)Series F Units $ 2.33 $ (0.49)Series I Units $ 2.52 $ (0.30)

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 5,056,356 4,683,031Series F Units 31,664 29,968Series I Units 511,682 507,207


Portfolio Advisor: Scheer, Rowlett & Associates Investment Management Ltd.


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Scotia Private Canadian Value Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $102,750,821 $85,710,109Series F Units 647,289 486,971Series I Units 10,869,820 9,541,171

114,267,930 95,738,251


Pinnacle Series Units 12,510,581 (1,506,219)Series F Units 73,876 (14,802)Series I Units 1,289,498 (153,533)

13,873,955 (1,674,554)


Pinnacle Series Units 11,486,348 10,997,767Series F Units 49,065 119,978Series I Units 197,900 398,009

Payments on redemptionPinnacle Series Units (9,986,705) (7,790,212)Series F Units (25,467) (64,809)Series I Units (855,430) (281,027)

865,711 3,379,706


Pinnacle Series Units 14,010,224 1,701,336Series F Units 97,474 40,367Series I Units 631,968 (36,551)

14,739,666 1,705,152



$129,007,596 $97,443,403


2014 2013




Net realized gain (loss) foreign exchange on cash – 91Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets (9,463,186) 5,873,671Purchases of non-derivative financial assets (25,629,082) (27,722,031)Proceeds from sale of non-derivative financial assets 23,360,493 22,867,085Transaction costs 25,546 24,017Accrued investment income (110,967) (23,922)Accrued expenses 15,113 13,534

Net cash provided by (used in) operating activities (600,332) (3,474,697)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 11,523,306 11,495,492Amounts paid on redemption of redeemable units (10,939,901) (8,093,488)Distributions to unitholders of redeemable units 9 –

Net cash provided by (used in) financing activities 583,414 3,402,004Net gain (loss) foreign exchange on cash – (91)Net increase (decrease) in cash (16,918) (72,693)Cash at beginning of period 22,893 97,377


Interest received(1) 10,967 6,258Dividends received, net of withholding taxes(1) 1,724,370 1,446,861




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AverageCost ($)

CarryingValue ($)

EQUITIES – 98.2%Energy – 24.9%

28,300 Cameco Corporation 542,097 592,319174,200 Canadian Natural Resources Ltd. 4,497,861 8,541,026166,100 Cenovus Energy Inc. 4,644,180 5,745,39942,100 MEG Engery Corporation 1,367,337 1,637,269

113,700 Precision Drilling Corporation 982,796 1,718,007228,364 Suncor Energy, Inc. 5,937,247 10,390,562259,700 Talisman Energy Inc. 2,972,031 2,929,41633,870 Trican Well Service Ltd. 459,606 583,580

21,403,155 32,137,578

Materials – 14.2%46,100 Agrium Inc. 3,576,650 4,506,275

179,800 Barrick Gold Corporation 6,978,532 3,513,292462,000 Capstone Mining Corp. 1,159,038 1,187,34074,600 Lundin Mining Corporation 356,403 437,90279,600 Major Drilling Group International Inc. 647,547 618,49259,500 Potash Corporation of Saskatchewan Inc. 2,320,743 2,414,510

518,600 Sherritt International Corporation 1,881,529 2,240,352137,200 Teck Resources Ltd., Class B 4,761,973 3,342,192

21,682,415 18,260,355

Industrials – 4.7%87,800 Canadian National Railway Company 2,629,567 6,093,320

Consumer Discretionary – 5.9%3,800 Canadian Tire Corporation, Limited, Class A 217,126 389,006

40,400 Gildan Activewear Inc. 1,106,848 2,539,94831,500 Magna International Inc. 1,639,932 3,618,09046,700 RONA inc. 562,896 536,11614,500 Thomson Reuters Corporation 508,892 563,325

4,035,694 7,646,485

Consumer Staples – 1.6%103,700 Maple Leaf Foods Inc. 1,186,163 2,059,482

Financials – 40.1%171,600 Bank of Nova Scotia, The 7,114,446 12,207,62487,700 Canadian Imperial Bank of Commerce 5,641,040 8,515,67018,800 Element Financial Corp. 251,326 253,424

153,380 Manulife Financial Corporation 3,134,075 3,253,19050,800 National Bank of Canada 1,949,480 2,299,208

144,100 Royal Bank of Canada 6,790,657 10,991,94862,000 Sun Life Financial Inc. 2,091,673 2,431,640

215,600 Toronto-Dominion Bank, The 6,151,354 11,842,908

33,124,051 51,795,612

Information Technology – 0.2%22,800 Celestica Inc. 193,012 305,976

Telecommunication Services – 5.3%12,400 BCE Inc. 419,630 600,16065,800 Rogers Communications, Inc., Class B 2,287,756 2,825,45286,600 TELUS Corporation 1,870,985 3,444,082

4,578,371 6,869,694

Utilities – 0.7%33,300 Capital Power Corporation 716,507 878,121

Exchange-traded Funds – 0.5%29,100 iShares S&P/TSX 60 Index Fund 600,537 633,216

TOTAL EQUITIES 90,149,472 126,679,839


AverageCost ($)

CarryingValue ($)


0.00% to 0.93% due from Jul. 31, 2014 toAug. 28, 2014 1,647,067 1,647,978



NET ASSETS – 100.0% 129,007,596



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns through capital growth by investing primarily in securities of

Canadian corporations. The Fund’s investments may also include up to 15% cash and cash equivalents.














3. Risks Associated with Financial Instruments (note 4)i) Other price risk


ii) Liquidity risk




Less than3 months

Ondemand

Less than3 months

Accounts payable and accrued liabilities $ – $62,333 $ – $119,519 $ – $21,638


$129,007,596 $62,333 $114,267,930 $119,519 $95,738,251 $21,638


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Energy 24.9 22.7 21.6

Materials 14.2 14.9 21.3






Telecommunication Services 5.3 6.3 7.5

UtilitiesExchange-traded Funds

0.70.5

0.5–

––





Equities $126,679,839 $ – $ – $126,679,839


$126,679,839 $1,647,978 – $128,327,817


Equities $112,101,389 $ – $ – $112,101,389


$112,101,389 $1,847,995 $ – $113,949,384


Equities $ 94,978,406 $ – $ – $ 94,978,406


$ 94,978,406 $ 299,899 $ – $ 95,278,305


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Scotia Private Canadian Mid Cap Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $57,206,651 $52,918,495 $40,646,248Cash – 62,765 42,419Accrued investment income 82,506 78,439 62,799Receivable for securities sold 977,952 – –Subscriptions receivable 79,602 37,567 13,190

58,346,711 53,097,266 40,764,656

LIABILITIESCurrent liabilitiesBank indebtedness 37,618 – –Payable for securities purchased 711,104 292,945 –Redemptions payable 48,524 67,820 4,897Accrued expenses 10,384 – –

807,630 360,765 4,897








2014 2013

INCOMEDividends $ 509,107 $ 398,152Interest for distribution purposes 4,604 1,413Capital gains distributions received (4,441) 7,112Net realized gain (loss) on non-derivative financial assets 6,818,337 1,928,224Net gain (loss) foreign exchange (6) –Change in unrealized appreciation (depreciation) of non-

derivative financial assets 1,018,319 2,056,008

Net gain (loss) on investments 8,345,920 4,390,909Securities lending 8,503 6,629Other income 65 –


EXPENSESManagement fees (note 5) 1,028 471Harmonized Sales Tax/Goods and Services Tax 4,753 5,584Audit fees 509 576Independent Review Committee fees 86 128Custodian fees 2,870 2,518Filing fees 8,605 8,281Legal fees 488 427Unitholder reporting costs 4,328 6,417Unitholder administration and service fees 36,712 41,323Overdraft charges 111 364Foreign withholding taxes/tax reclaims 1,768 –Transaction costs 50,477 48,706


Net expenses 110,390 112,981


INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES

Pinnacle Series Units $7,326,536 $3,793,190Series F Units $ 30,149 $ 8,292Series I Units $ 887,413 $ 483,075

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*

Pinnacle Series Units $ 3.41 $ 1.65Series F Units $ 3.24 $ 1.40Series I Units $ 3.50 $ 1.71



Portfolio Advisor: Connor, Clark & Lunn Investment Management Ltd.


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Scotia Private Canadian Mid Cap Pool (Unaudited – Continued)


2014 2013

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIODPinnacle Series Units $46,937,672 $36,120,917Series F Units 178,925 67,818Series I Units 5,619,904 4,571,024

52,736,501 40,759,759



8,244,098 4,284,557




(3,441,518) (2,060,461)



4,802,580 2,224,096



$57,539,081 $42,983,855


2014 2013


redeemable units $ 8,244,098 $ 4,284,557Adjustments For:

Net realized gain (loss) on sale of non-derivative financialassets (6,818,337) (1,928,224)

Net realized gain (loss) foreign exchange on cash 6 –Change in unrealized appreciation (depreciation) on sale

of non-derivative financial assets (1,018,319) (2,056,008)Purchases of non-derivative financial assets (24,149,702) (19,789,501)Proceeds from sale of non-derivative financial assets 27,087,932 21,440,345Transaction costs 50,477 48,706Accrued investment income (4,067) (10,949)Accrued expenses 10,384 9,303


CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 4,083,618 2,156,142Amounts paid on redemption of redeemable units (7,586,467) (4,189,826)

Net cash provided by (used in) financing activities (3,502,849) (2,033,684)Net gain (loss) foreign exchange on cash (6) –Net increase (decrease) in cash (100,377) (35,455)Cash at beginning of period 62,765 42,419

CASH AT END OF PERIOD $ (37,618) $ 6,964





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AverageCost ($)

CarryingValue ($)


62,670 Canelson Drilling Inc. 389,731 512,01441,133 Cardinal Energy Ltd. 475,582 740,39415,900 Crescent Point Energy Corp. 746,658 751,91136,400 DeeThree Exploration Ltd. 338,397 414,96024,600 Gibson Energy Inc. 616,543 837,38422,915 Kelt Exploration Ltd. 186,757 348,9955,800 Mullen Group Limited 144,949 178,176

50,600 North American Energy Partners Inc. 432,630 434,65491,900 Parex Resources Inc. 977,044 1,153,3459,300 Peyto Exploration & Development Corporation 226,439 374,8839,900 PrairieSky Royalty Ltd. 277,200 384,120

45,700 Precision Drilling Corporation 466,609 690,527124,660 Raging River Exploration Inc. 324,071 1,352,561

2,300 Secure Energy Services Inc. 46,682 53,93516,000 ShawCor Ltd. 838,598 949,44041,611 Spartan Energy Corp. 62,261 168,10842,100 Tourmaline Oil Corp. 1,484,825 2,368,54645,744 Trinidad Drilling Ltd. 521,480 553,9606,100 Vermilion Energy, Inc. 302,537 452,925

36,226 Whitecap Resources, Inc. 348,579 596,642

9,207,572 13,317,480

Materials – 14.2%57,245 Alamos Gold Inc. 831,936 617,6747,900 CCL Industries Inc., Class B 322,404 811,725

40,700 First Majestic Silver Corp. 712,223 469,27119,200 Franco-Nevada Corporation 1,080,555 1,176,00050,500 Interfor Corporation 559,826 750,93527,000 Intertape Polymer Group Inc. 337,741 319,680

241,718 Lundin Mining Corporation 1,136,089 1,418,88518,032 Methanex Corporation 1,141,003 1,189,57151,500 Tahoe Resources Inc. 1,001,645 1,438,910

7,123,422 8,192,651

Industrials – 10.6%42,800 Aecon Group Inc. 615,276 725,46064,300 ATS Automation Tooling Systems Inc. 567,930 1,003,72367,600 CAE, Inc. 928,815 943,69622,880 Heroux-Devtek Inc. 193,019 256,48522,600 Progressive Waste Solutions Ltd. 507,043 619,01423,004 Russel Metals Inc. 643,844 789,2673,880 Stantec Inc. 159,111 256,390

43,600 WesternOne Inc. 334,848 346,18413,400 WestJet Airlines Ltd. 341,684 351,08021,400 WSP Global Inc. 757,792 808,706

5,049,362 6,100,005

Consumer Discretionary – 14.7%27,000 Amaya Gaming Group Inc. Subscription Receipts

Restricted* 540,000 540,0007,100 AutoCanada Inc. 216,560 561,113

15,975 BRP Inc. 449,806 420,1435,300 Cogeco Cable Inc. 281,972 313,177

16,200 Dollarama Inc. 1,117,578 1,423,17026,500 Gildan Activewear Inc. 797,490 1,666,05536,000 Harwoods Distribution Inc. 275,961 405,00017,200 IMAX Corporation 392,561 520,98820,200 Linamar Corporation 293,189 1,271,59059,700 Martinrea International Inc. 586,956 756,99637,700 SunOpta Inc. 366,197 566,631

5,318,270 8,444,863

Consumer Staples – 2.9%57,000 Alimentation Couche-Tard Inc., Class B 650,934 1,666,110


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Health Care – 0.4%

44,800 Knight Therapeutics Inc. 235,200 241,920

Financials – 22.1%18,800 Artis Real Estate Investment Trust 302,864 296,1008,300 Boardwalk Real Estate Investment Trust 489,825 541,658

34,817 Brookfield Property Partners LP 708,095 776,07124,708 Canadian Western Bank 750,210 985,6029,700 CI Financial Corporation 309,789 339,985

12,100 Davis + Henderson Income Corporation 268,086 375,705500 E-L Financial Corporation Limited 247,594 350,500

79,687 Element Financial Corp. 536,663 1,074,18111,400 Element Financial Corp. Subscription Receipts 145,350 152,87418,800 FirstService Corporation 812,559 1,016,70430,000 Gluskin Sheff + Associates Inc. 529,749 955,20018,300 IGM Financial, Inc. 854,087 934,76433,200 Industrial Alliance Insurance and Financial

Services Inc. 1,242,116 1,552,43216,300 Intact Financial Corporation 1,035,593 1,199,3549,400 Onex Corporation 471,421 620,588

15,800 Power Financial Corporation 411,025 524,7188,984 TMX Group Inc. 412,852 528,708

65,200 Tricon Capital Group Inc 386,188 513,124

9,914,066 12,738,268

Information Technology – 7.8%32,688 Avigilon Corporation 431,525 777,6483,400 Constellation Software Inc. 672,814 924,664

26,000 Descartes Systems Group Inc., The 373,057 397,54022,200 Halogen Software Inc. 310,800 178,26610,200 MacDonald, Dettwiler and Associates Ltd. 728,972 888,72619,660 Open Text Corporation 649,572 1,006,59284,870 Sandvine Corporation 220,723 305,532

3,387,463 4,478,968

Telecommunication Services – 0.3%28,700 Canadian Satellite Radio Holdings Inc. 241,937 200,900

Utilities – 3.2%18,600 Brookfield Infrastructure Partners LP 490,924 828,25827,400 Capital Power Corporation 625,262 722,5387,764 Pattern Energy Group Inc. 195,279 274,690

1,311,465 1,825,486



NET ASSETS – 100.0% 57,539,081




CA

NA

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53



1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns through capital growth by investing primarily in stocks of small

and medium capitalization Canadian corporations.














3. Risks Associated with Financial Instruments (note 4)

i) Other price risk

Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting amarket or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2014,approximately 99.4% (December 31, 2013 – 98.9%, January 1, 2013 – 99.2%) of the Fund’s net assets attributable to holders ofredeemable units were exposed to other price risk. If prices of these investments had decreased or increased by 10%, with all othervariables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased,respectively, by approximately $5,720,665 (December 31, 2013 – $5,194,238, January 1, 2013 – $4,030,467). In practice, actual resultswill differ from this sensitivity analysis and the difference could be material.

ii) Liquidity risk





Less than3 months



$57,539,081 $807,630 $52,736,501 $360,765 $40,759,759 $4,897


CA

NA

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Canadian Equities

Energy 23.2 20.2 21.4

Materials 14.2 9.8 16.6




Health Care 0.4 – –



Telecommunication Services 0.3 – 3.2

Utilities 3.2 2.0 3.7

Money Market Instruments – 1.4 0.5

vi) Fair value classification (note 2)



Equities $56,666,651 $ – $540,000 $57,206,651


Equities $51,877,142 $ – $ – $51,877,142

Warrants – 292,945 – 292,945


$51,877,142 $1,041,353 $ – $52,918,495


Equities $40,446,729 $ – $ – $40,446,729


$40,446,729 $ 199,519 $ – $40,646,248


CA

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55




Reconciliation of Level 3 Financial InstrumentsThe following table presents the movement in the Fund’s Level 3 financial instruments for the years ended at June 30,2014, December 31, 2013 and January 1, 2013.


Beginning of period $ – $ – $ –

Purchases 540,000 – –

Sales – – –

Transfers into Level 3 – – –

Transfers out of Level 3 – – –

Net realized gains (losses) – – –

Net change in unrealized appreciation (depreciation)* – – –

End of period $540,000 $ – $ –

* Net change in unrealized appreciation (depreciation) for Level 3 financial instruments held as at June 30, 2014, December 31, 2013 and January 1, 2013, was $0, nil and nil, respectively.

Level 3 Valuation TechniquesAs of June 30, 2014, the significant unobservable inputs and valuation techniques used to determine the fair value measurementscategorized in Level 3 are indicated below:

Fair Value Valuation Technique Significant Unobservable Inputs

Equities $540,000 Fair value at cost Purchase price

The Fund did not hold any level 3 financial instruments as of December 31, 2013 and January 1, 2013.

If the significant unobservable inputs used in determining the fair value of the Fund’s Level 3 financial instruments decreased orincreased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, byapproximately $27,000 (December 31, 2013 nil), (January 1, 2013 – nil).

CA

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56


Scotia Private Canadian Growth Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $306,516,677 $258,408,870 $170,394,122Cash 153,577 121,379 76,114Accrued investment income 363,298 231,406 306,742Receivable for securities sold 654,368 – –Subscriptions receivable 815,333 80,352 43,434

308,503,253 258,842,007 170,820,412

LIABILITIESCurrent liabilitiesPayable for securities purchased 3,620,778 – –Redemptions payable 52,538 120,208 24,230Accrued expenses 18,955 – –

3,692,271 120,208 24,230



Pinnacle Series Units $118,190,881 $105,923,774 $ 89,119,816Series F Units $ 1,229,110 $ 1,065,853 $ 565,484Series I Units $185,390,991 $151,732,172 $ 81,110,882





2014 2013


Dividends $ 2,901,710 $ 2,084,208Interest for distribution purposes 34,810 24,688Net realized gain (loss) on non-derivative financial assets 7,307,716 (1,276,751)Net gain (loss) foreign exchange 143 2,484Change in unrealized appreciation (depreciation) of non-



Other income 82 260


EXPENSESManagement fees (note 5) 5,648 3,044Harmonized Sales Tax/Goods and Services Tax 8,388 8,876

Audit fees 3,001 2,374Independent Review Committee fees 434 571Custodian fees 8,371 6,192Filing fees 8,602 8,281Legal fees 2,459 1,837Unitholder reporting costs 5,241 6,864Unitholder administration and service fees 63,129 67,882Overdraft charges – 21Transaction costs 95,743 68,461


Net expenses 200,005 172,932

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $31,700,717 $ 7,889,562


Pinnacle Series Units $12,848,541 $ 3,970,795Series F Units $ 126,064 $ 21,743Series I Units $18,726,112 $ 3,897,024





Portfolio Advisor: Manulife Asset Management


CA

NA

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57

Scotia Private Canadian Growth Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $105,923,774 $ 89,119,816Series F Units 1,065,853 565,484Series I Units 151,732,172 81,110,882

258,721,799 170,796,182

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITSFROM OPERATIONS


31,700,717 7,889,562



Payments on redemptionPinnacle Series Units (10,251,998) (7,587,490)Series F Units (92,011) (67,736)Series I Units (20,850,972) (350,505)

14,388,466 24,517,257

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS


46,089,183 32,406,819


Pinnacle Series Units 118,190,881 94,620,377Series F Units 1,229,110 591,362Series I Units 185,390,991 107,991,262

$304,810,982 $203,203,001


2014 2013



Net realized gain (loss) on sale of non-derivativefinancial assets (7,307,716) 1,276,751

Net realized gain (loss) foreign exchange on cash (143) (2,484)Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets (21,646,587) (7,213,269)Purchases of non-derivative financial assets (263,114,930) (448,201,881)Proceeds from sale of non-derivative financial assets 246,832,093 421,641,625Transaction costs 95,743 68,461Accrued investment income (131,892) (15,395)Accrued expenses 18,955 15,564



Net cash provided by (used in) financing activities 13,585,815 24,507,810Net gain (loss) foreign exchange on cash 143 2,484Net increase (decrease) in cash 32,055 (33,256)Cash at beginning of period 121,379 76,114






CA

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AverageCost ($)

CarryingValue ($)


327,250 Canadian Natural Resources Ltd. 13,050,232 16,045,068197,090 Cenovus Energy Inc. 6,442,016 6,817,343114,390 Crescent Point Energy Corp. 4,755,044 5,409,503198,740 EnCana Corporation 5,013,358 5,024,14772,800 Imperial Oil Ltd. 3,221,365 4,093,544

121,450 Peyto Exploration & Development Corporation 4,143,605 4,895,650198,760 Precision Drilling Corporation 1,976,785 3,003,26440,820 ShawCor Ltd. 1,802,002 2,422,259

377,920 Suncor Energy, Inc. 14,033,359 17,195,36077,120 Tourmaline Oil Corp. 3,050,118 4,338,771

251,950 Whitecap Resources, Inc. 3,772,550 4,149,617

61,260,434 73,394,526

Materials – 6.3%33,450 Agrium Inc. 3,150,749 3,269,738

264,500 First Quantum Minerals Ltd. 5,513,871 6,035,89076,010 Franco-Nevada Corporation 3,563,617 4,655,61347,700 Methanex Corporation 1,870,987 3,146,76939,750 West Fraser Timber Co., Ltd. 1,330,188 2,055,473

15,429,412 19,163,483

Industrials – 9.6%226,550 Canadian National Railway Company 9,023,402 15,722,570155,470 SNC-Lavalin Group Inc. 7,158,707 8,724,976183,030 WestJet Airlines Ltd. 3,477,655 4,795,386

19,659,764 29,242,932

Consumer Discretionary – 10.9%212,570 Aimia Inc 3,464,894 3,970,80820,610 AutoCanada Inc. 1,607,639 1,628,80893,250 BRP Inc. 2,608,917 2,452,47552,290 Dollarama Inc. 2,483,058 4,593,67788,570 Gildan Activewear Inc. 3,752,599 5,568,39699,050 IMAX Corporation 2,741,008 3,000,225

104,660 Magna International Inc. 5,551,094 12,021,248

22,209,209 33,235,637

Consumer Staples – 6.2%295,690 Alimentation Couche-Tard Inc., Class B 4,166,249 8,643,019108,700 Loblaw Companies Limited 5,088,855 5,176,29477,980 Saputo Inc. 3,741,022 4,985,261

12,996,126 18,804,574

Health Care – 5.5%127,000 Catamaron Corporation 6,326,858 5,984,24079,750 Valeant Pharmaceuticals International, Inc. 4,674,798 10,761,465

11,001,656 16,745,705

Financials – 29.0%205,590 Bank of Nova Scotia, The 10,800,035 14,625,673132,580 Brookfield Asset Management Inc., Class A 4,542,955 6,232,586170,510 CI Financial Corporation 5,262,754 5,976,376338,910 Element Financial Corp. 4,163,968 4,568,507106,890 Home Capital Group Inc. 2,907,619 5,112,549103,550 Intact Financial Corporation 5,809,250 7,619,209140,430 Royal Bank of Canada 8,744,791 10,712,000257,250 Sun Life Financial Inc. 8,449,240 10,089,345428,730 Toronto-Dominion Bank, The 17,135,880 23,550,134

67,816,492 88,486,379

Number ofShares/FaceValue ($) Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Information Technology – 6.2%

175,410 CGI Group Inc., Class A 4,363,504 6,634,00621,920 Constellation Software Inc. 2,587,354 5,961,363

160,690 Descartes Systems Group Inc., The 2,407,280 2,456,95074,520 Open Text Corporation 2,471,378 3,815,424

11,829,516 18,867,743

TOTAL EQUITIES 222,202,609 297,940,979


0.95% due Dec. 4, 2014 5,972,820 5,975,7712,600,000 Banner Trust Commercial Paper

1.02% due Jul. 2, 2014 2,599,855 2,599,927

8,572,675 8,575,698


OTHER ASSETS, LESS LIABILITIES – (0.6)% (1,705,695)

NET ASSETS – 100.0% 304,810,982



CA

NA

DIA

NE

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ITY

FUN

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59



1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns through capital growth by investing primarily in stocks of large

and medium capitalization Canadian corporations. The Fund’s investments may also include up to 15% cash and cashequivalents.

2. Transition to IFRS (note 13)

The following reconciliations between IFRS and Canadian GAAP, as required by IFRS1 and the related explanation of any significantadjustments are as follows:













3. Risks Associated with Financial Instruments (note 4)i) Currency risk







US Dollar 44,655 0.0 4,466 0.0

ii) Other price risk

Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting amarket or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2014,approximately 97.8% (December 31, 2013 – 97.7%, January 1, 2013 – 97.9%) of the Fund’s net assets attributable to holders ofredeemable units were exposed to other price risk. If prices of these investments had decreased or increased by 10%, with all othervariables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased,respectively, by approximately $29,794,098 (December 31, 2013 – $25,238,002, January 1, 2013 – $16,673,224). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.C

AN

AD

IAN

EQ

UIT

YFU

ND

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60




iii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $3,692,271 $ – $120,208 $ – $24,230


$304,810,982 $3,692,271 $258,721,799 $120,208 $170,796,182 $24,230




Percentage of Net Assets (%)June 30, 2014 December 31, 2013 January 1, 2013

Energy 24.1 19.0 22.9





Health Care 5.5 5.6 4.0







Equities $297,940,979 – $ – $298,940,979


$297,940,979 $8,575,698 $ – $306,516,677


Equities $252,733,347 $ – $ – $252,733,347


$252,733,347 5,675,523 $ – $258,408,870


Equities $167,084,296 $ – $ – $167,084,296


$167,084,296 3,309,826 $ – $170,394,122


CA

NA

DIA

NE

QU

ITY

FUN

DS

61


Scotia Private Canadian Small Cap Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $467,666,733 $383,326,330 $233,873,987Cash 14,385,180 11,183,951 112,956Accrued investment income 925,969 938,485 638,988Receivable for securities sold 83,744 792,176 310,161Subscriptions receivable 1,850,422 66,808 34,170

484,912,048 396,307,750 234,970,262

LIABILITIESCurrent liabilitiesPayable for securities purchased 536,680 235,868 2,422,860Redemptions payable 39,041 48,125 9,755Accrued expenses 20,780 – –

596,501 283,993 2,432,615



Pinnacle Series Units $ 65,602,264 $ 61,592,518 $ 46,711,853Series F Units $ 1,378,421 $ 879,131 $ 428,022Series I Units $417,334,862 $333,552,108 $185,397,772





2014 2013


Dividends $ 5,243,884 $ 3,094,374Interest for distribution purposes 60,356 69,266Capital gains distributions received – 5,776Net realized gain (loss) on non-derivative financial assets 45,820,246 (7,584,020)Change in unrealized appreciation (depreciation) of non-

derivative financial assets (252,365) 39,418,938



EXPENSESManagement fees (note 5) 5,085 2,373Harmonized Sales Tax/Goods and Services Tax 8,320 8,123Audit fees 4,779 3,478Independent Review Committee fees 683 808Custodian fees 7,866 5,647Filing fees 8,985 8,281Legal fees 3,868 2,609Unitholder reporting costs 5,578 6,806Unitholder administration and service fees 66,290 66,937Overdraft charges – 22Transaction costs 318,991 70,409


Net expenses 429,252 173,959



Pinnacle Series Units $ 7,397,538 $ 6,309,830Series F Units $ 108,750 $ 60,194Series I Units $42,969,901 $28,493,864





Portfolio Advisor: Van Berkom and Associates Inc.


CA

NA

DIA

NE

QU

ITY

FUN

DS

62

Scotia Private Canadian Small Cap Pool (Unaudited – Continued)


2014 2013



396,023,757 232,537,647



50,476,189 34,863,888



Payments on redemptionPinnacle Series Units (8,072,567) (5,846,086)Series F Units (157,763) (11,038)Series I Units (29,440,252) (960,104)

37,815,601 33,289,736



88,291,790 68,153,624



$484,315,547 $300,691,271


2014 2013




Change in unrealized appreciation (depreciation) on saleof non-derivative financial assets 252,365 (39,418,938)

Purchases of non-derivative financial assets (121,511,970) (74,224,234)Proceeds from sale of non-derivative financial assets 83,429,701 37,876,620Transaction costs 318,991 70,409Accrued investment income 12,516 (38,040)Accrued expenses 20,780 15,406



Net cash provided by (used in) financing activities 36,022,903 33,168,629Net increase (decrease) in cash 3,201,229 (102,240)Cash at beginning of period 11,183,951 112,956






CA

NA

DIA

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63



AverageCost ($)

CarryingValue ($)

EQUITIES – 96.6%Canadian Equities – 96.6%Energy – 19.9%

839,600 Calfrac Well Services Ltd. 14,075,528 16,750,020233,697 Canadian Energy Services & Technology

Corporation 1,631,557 7,810,154488,900 Canyon Services Group Inc 6,018,835 9,240,210335,900 Enerflex Ltd. 5,113,851 6,825,488519,800 Kelt Exploration Ltd. 4,445,525 7,916,55412,600 Kelt Exploration Ltd. Restricted* 146,160 189,142

560,500 Mullen Group Limited 15,697,500 17,218,560884,000 NuVista Energy Ltd. 6,647,982 10,563,800213,800 Peyto Exploration & Development Corporation 6,277,766 8,618,278744,000 Savanna Energy Services Corp. 5,791,787 6,286,800711,548 ZCL Composites Inc. 4,095,929 4,810,062

69,942,420 96,229,068

Materials – 14.8%601,100 Canam Group Inc., Class A 6,220,369 8,054,740228,900 CCL Industries Inc., Class B 17,353,667 23,519,475338,600 Interfor Corporation 5,361,868 5,034,982934,100 Major Drilling Group International Inc. 6,907,639 7,257,957521,832 Stella-Jones Inc. 5,954,098 15,289,678494,271 Winpak Ltd. 7,066,879 12,554,483

48,864,520 71,711,315

Industrials – 23.9%874,500 ATS Automation Tooling Systems Inc. 10,342,768 13,650,945340,750 Cervus Equipment Corp. 7,461,542 7,217,085926,402 Contrans Group, Inc., Class A 9,752,185 13,238,285451,856 DirectCash Payments Inc. 8,513,579 6,800,433969,400 Exco Technologies Ltd. 8,195,002 10,682,788

2,045,900 Horizon North Logistics Inc. 14,485,845 15,671,594231,584 Richelieu Hardware Ltd. 6,487,873 11,231,824207,058 Stantec Inc. 6,030,474 13,682,393419,700 Toromont Industries Ltd. 9,866,556 11,042,307331,200 WSP Global Inc. 9,047,848 12,516,048

90,183,672 115,733,702

Consumer Discretionary – 5.6%599,800 Bauer Performance Sports Ltd. 7,349,511 11,012,328246,100 Leon’s Furniture Ltd. 3,552,495 3,568,450683,400 Martinrea International Inc. 8,184,800 8,665,512134,040 MTY Food Group Inc. 1,869,836 4,048,008

20,956,642 27,294,298

Consumer Staples – 5.5%654,800 Alimentation Couche-Tard Inc., Class B 17,823,323 19,139,804308,522 High Liner Foods Inc. 4,363,430 7,497,085

22,186,753 26,636,889

Health Care – 0.5%194,200 Knight Therapeutics Inc. 1,073,604 1,048,68075,700 New Look Eyewear Inc. 1,431,245 1,588,565

2,504,849 2,637,245

Financials – 9.9%281,473 Canadian Western Bank 6,669,185 11,227,958185,314 Equitable Group Inc. 5,814,495 11,306,007292,364 Equity Financial Holdings, Inc. 3,019,410 3,025,967411,163 FirstService Corporation 13,004,757 22,235,695

28,507,847 47,795,627

Information Technology – 14.7%1,206,500 5N Plus Inc. 4,638,549 4,922,520

729,300 Absolute Software Corporation 5,082,217 5,032,1702,341,017 COM DEV International Ltd. 9,217,728 9,996,143

545,291 Descartes Systems Group Inc., The 3,466,330 8,337,499


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Canadian Equities (cont’d)Information Technology (cont’d)

538,917 Enghouse Systems Limited 14,248,843 19,233,94869,570 Evertz Technologies Limited 1,062,949 1,213,997

189,500 MacDonald, Dettwiler and Associates Ltd. 15,248,730 16,511,13530,300 Mediagrif Interactive Technologies Inc. 605,526 589,335

336,959 Solium Capital Inc. 1,283,055 2,621,541284,371 Sylogist Ltd. 717,747 2,621,901

55,571,674 71,080,189

Telecommunication Services – 1.8%1,221,200 Canadian Satellite Radio Holdings Inc. 9,420,470 8,548,400



NET ASSETS – 100.0% 484,315,547




CA

NA

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and medium capitalization Canadian corporations. The Fund’s investments may also include up to 15% cash and cashequivalents.





Revaluation of Investments at FVTPL 1,412,016 1,372,116









3. Risks Associated with Financial Instruments (note 4)i) Other price risk


ii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $596,501 $ – $283,993 $ – $2,432,615


$484,315,547 $596,501 $396,023,757 $283,993 $232,537,647 $2,432,615


CA

NA

DIA

NE

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ITY

FUN

DS

65







Investment Category June 30, 2014 December 31, 2013 January 1, 2013

Energy 19.9 16.1 17.0

Materials 14.8 13.6 9.3




Health Care 0.5 – 5.3



Telecommunication Services 1.8 2.8 –

Money Market Instruments – – 3.1




Equities $467,666,733 $ – $ – $467,666,733


Equities $383,326,330 $ – $ – $383,326,330


Equities $226,294,285 $ – $ – $226,294,285

Warrants – 321,027 – 321,027


$226,294,285 $7,579,702 $ – $233,873,987


CA

NA

DIA

NE

QU

ITY

FUN

DS

66


Scotia Private U.S. Value Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $241,315,982 $421,169,644 $247,647,944Cash 6,660,818 16,534,636 11,842,076Accrued investment income 237,196 594,770 369,605Subscriptions receivable 1,254,008 92,053 299,527

249,468,004 438,391,103 260,159,152

LIABILITIESCurrent liabilitiesRedemptions payable 65,198 50,207 9,277Accrued expenses 16,857 – –Unrealized loss on currency spot

contracts – – 107

82,055 50,207 9,384








2014 2013

INCOMENet gain (loss) on investments (note 2)Dividends $ 6,840,696 $ 3,606,240

Interest for distribution purposes 2,140 618Net realized gain (loss) on non-derivative financial assets 58,476,941 8,356,496Net gain (loss) foreign exchange 332,632 877,057Change in unrealized appreciation (depreciation) of non-

derivative financial assets (55,489,930) 33,706,288Change in unrealized appreciation (depreciation) of currency

spots – 107



EXPENSESManagement fees (note 5) 3,639 1,098Harmonized Sales Tax/Goods and Services Tax 7,947 8,716Audit fees 3,466 3,850Independent Review Committee fees 493 934Custodian fees 4,091 2,855Filing fees 8,600 8,281Legal fees 2,766 2,995Unitholder reporting costs 5,327 7,060Unitholder administration and service fees 63,475 73,328Overdraft charges 4 –Foreign withholding taxes/tax reclaims 418,086 508,513Transaction costs 221,870 164,341


Net expenses 738,624 780,392

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 9,441,521 $45,809,696


Pinnacle Series Units $ 2,804,399 $ 7,775,127Series F Units $ 24,897 $ 30,078Series I Units $ 6,612,225 $38,004,491





Portfolio Advisor: Herndon Capital Management, LLC


FOR

EIG

NE

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ITY

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67

Scotia Private U.S. Value Pool (Unaudited – Continued)


2014 2013



438,340,896 260,149,768



9,441,521 45,809,696



Payments on redemptionPinnacle Series Units (7,140,480) (4,823,532)Series F Units (38,340) (11,091)Series I Units (243,175,585) (2,086,019)

(198,396,468) 38,128,958



Series I Units (190,655,070) 72,895,330

(188,954,947) 83,938,654



$ 249,385,949 $344,088,422


2014 2013




Net realized gain (loss) foreign exchange on cash (332,632) (877,057)Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets 55,489,930 (33,706,288)Change in unrealized appreciation (depreciation) of

currency spot contracts – (107)Purchases of non-derivative financial assets (136,288,636) (158,651,514)Proceeds from sale of non-derivative financial assets 318,907,438 122,214,213Transaction costs 221,870 164,341Accrued investment income 357,574 (162,730)Accrued expenses 16,857 16,035

Net cash provided by (used in) operating activities 189,336,981 (33,549,907)


Net cash provided by (used in) financing activities (199,543,431) 38,214,145Net gain (loss) foreign exchange on cash 332,632 877,057Net increase (decrease) in cash (10,206,450) 4,664,238Cash at beginning of period 16,534,636 11,842,076


Interest received(1) 2,153 621Dividends received, net of withholding taxes(1) 6,780,172 2,934,994




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AverageCost ($)

CarryingValue ($)

EQUITIES – 96.8%Energy – 20.1%49,754 Apache Corporation 4,363,029 5,340,11349,219 Chevron Corporation 5,772,825 6,852,97961,524 ConocoPhillips 4,845,323 5,626,05837,984 Continental Resource, Inc. 4,185,659 6,404,28447,614 Exxon Mobil Corporation 4,165,472 5,111,44272,224 Marathon Petroleum Corporation 4,275,330 6,016,99795,229 Oasis Petroleum Inc. 4,579,170 5,678,14174,949 PBF Energy Inc. 2,491,212 2,130,91449,754 SM Energy Company 4,300,163 4,465,35449,588 Southwestern Energy Company 2,534,372 2,405,761

41,512,555 50,032,043

Materials – 6.7%17,654 CF Industries Holdings, Inc. 3,036,760 4,530,64856,174 LyondellBasell Industries NV, Class A 4,609,000 5,851,18412,839 NewMarket Corporation 3,541,218 5,370,83729,424 Southern Copper Corporation 1,037,985 953,343

12,224,963 16,706,012

Industrials – 10.1%5,884 Caterpillar Inc. 567,995 682,064

14,979 Copa Holdings SA, Class A 2,378,359 2,278,31592,554 Joy Global Inc. 5,345,010 6,081,95940,124 Lockheed Martin Corporation 3,922,546 6,878,32154,034 Rockwell Collins, Inc. 4,323,408 4,504,46743,334 United Parcel Service, Inc., Class B 3,875,277 4,746,056

20,412,595 25,171,182

Consumer Discretionary – 7.2%74,463 Coach, Inc. 3,901,914 2,716,08058,314 Ross Stores, Inc. 4,626,600 4,114,094

110,744 TJX Companies, Inc., The 4,162,905 6,279,51856,174 Yum! Brands, Inc. 3,702,688 4,865,349

16,394,107 17,975,041

Consumer Staples – 8.7%133,214 Altria Group, Inc. 4,050,883 5,958,34788,809 Campbell Soup Company 3,754,033 4,340,30483,994 Colgate-Palmolive Company 5,379,018 6,107,29413,374 Kellogg Company 933,038 937,41048,684 Philip Morris International Inc. 3,728,773 4,377,633

17,845,745 21,720,988

Health Care – 8.8%34,774 AmerisourceBergen Corporation 2,480,283 2,695,58456,709 Baxter International Inc. 4,269,568 4,373,23735,844 Endo Pharmaceuticals Holdings Inc. 2,621,372 2,677,57428,889 Gilead Sciences, Inc. 2,506,844 2,555,302

116,629 Mylan Inc. 4,295,825 6,415,37934,774 United Therapeutics Corporation 3,513,473 3,282,855

19,687,365 21,999,931

Financials – 19.7%98,439 Aflac, Inc. 5,135,969 6,537,465

126,862 American Capital Agency Corporation 3,411,055 3,168,369150,334 Apartment Investment & Management Company 4,274,683 5,175,580119,839 CBOE Holdings Inc. 4,247,629 6,291,50399,509 Discover Financial Services 3,994,645 6,579,862

108,604 Eaton Vance Corp. 3,659,929 4,381,39959,919 McGraw-Hill Companies, Inc., The 3,318,862 5,307,65227,284 Moody’s Corporation 2,444,697 2,551,16274,899 Nationstar Mortgage Holdings Inc. 2,531,963 2,898,58794,159 Waddell & Reed Financial, Inc. 4,279,481 6,287,379

37,298,913 49,178,958


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Information Technology – 13.5%28,000 Accenture PLC, Class A 2,506,428 2,414,08778,644 Apple Inc. 4,980,052 7,796,94327,819 International Business Machines Corporation 4,793,659 5,378,664

132,144 Microsoft Corporation 4,043,477 5,878,76869,014 Western Digital Corporation 3,360,194 6,795,818

287,294 Western Union Company 5,089,485 5,314,697

24,773,295 33,578,977

Telecommunication Services – 1.0%48,149 Verizon Communications Inc. 2,476,379 2,512,137

Utilities – 1.0%147,124 AES Corporation, The 2,303,881 2,440,713



NET ASSETS – 100.0% 249,385,949



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1. The Fund (note 1)

i) The Fund’s investment objective is to achieve long-term returns through capital growth by investing primarily in stocks of largecapitalization U.S. corporations. The Fund’s investments may also include up to 15% cash and cash equivalents and some largecapitalization non-U.S. securities.
















June 30, 2014






US Dollar 247,199,757 99.1 24,719,976 9.9

December 31, 2013






US Dollar 421,169,643 96.1 42,116,964 9.6

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January 1, 2013






US Dollar 248,177,260 95.4 24,817,726 9.5



iii) Liquidity risk





Less than3 months


Payable for currency forward contracts – – – – – 107


$249,385,949 $82,055 $438,340,896 $50,207 $260,149,768 $9,384






Energy 20.1 23.0 22.6








Utilities 1.0 1.0 –

Telecommunication Services 1.0 – –

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Equities $241,315,982 $ – $ – $241,315,982


Equities $421,169,644 $ – $ – $421,169,644


Equities $247,647,944 $ – $ – $247,647,944

Currency Spot Contracts – Liabilities (107) – – (107)

$247,647,837 $ – $ – $247,647,837


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Scotia Private U.S. Mid Cap Value Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $24,281,010 $24,967,060 $17,812,375Cash 1,671,178 1,355,224 768,968Accrued investment income 18,040 15,144 10,904Subscriptions receivable 12,468 37,165 10,251

25,982,696 26,374,593 18,602,498

LIABILITIESCurrent liabilitiesPayable for securities purchased – 445,139 86,172Redemptions payable 2,171 11,379 18,095Accrued expenses 13,627 – –

15,798 456,518 104,267



Pinnacle Series Units $10,501,694 $10,556,154 $ 7,848,434Series F Units $ 246,352 $ 127,477 $ 59,053Series I Units $ 144,594 $ 137,659 $ 120,359Series M Units $15,074,258 $15,096,785 $10,470,385

UNITS OUTSTANDINGPinnacle Series Units 775,088 818,376 861,149Series F Units 18,400 9,964 6,515Series I Units 10,607 10,607 13,129Series M Units 1,118,227 1,175,086 1,152,768




2014 2013


Dividends $ 222,741 $ 156,280Interest for distribution purposes 667 502Net realized gain (loss) on non-derivative financial assets 6,170,885 1,254,700Net gain (loss) foreign exchange (18,272) 38,834Change in unrealized appreciation (depreciation) of non-

derivative financial assets (4,914,151) 2,301,265

Net gain (loss) on investments 1,461,870 3,751,581Securities lending 180 14


EXPENSESManagement fees (note 5) 42,144 31,801Harmonized Sales Tax/Goods and Services Tax 6,719 6,309Audit fees 171 316Independent Review Committee fees 41 61Custodian fees 3,844 4,896Filing fees 10,125 8,926Legal fees 233 198Unitholder reporting costs 2,835 4,896Unitholder administration and service fees 15,017 17,117Foreign withholding taxes/tax reclaims 18,249 20,897Transaction costs 65,578 15,936


Net expenses 162,666 103,547



Pinnacle Series Units $ 530,207 $1,549,015Series F Units $ 6,665 $ 13,578Series I Units $ 6,935 $ 22,641Series M Units $ 755,577 $2,062,814



WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 786,310 855,967Series F Units 12,976 7,755Series I Units 10,607 12,157Series M Units 1,136,018 1,148,329


Portfolio Advisor: Hahn Capital Management, LLC


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Scotia Private U.S. Mid Cap Value Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $10,556,154 $ 7,848,434Series F Units 127,477 59,053Series I Units 137,659 120,359Series M Units 15,096,785 10,470,385

25,918,075 18,498,231


Pinnacle Series Units 530,207 1,549,015Series F Units 6,665 13,578Series I Units 6,935 22,641Series M Units 755,577 2,062,814

1,299,384 3,648,048


Pinnacle Series Units 651,317 941,846Series F Units 117,156 13,389Series I Units – 1,504Series M Units 2,606,807 1,326,185

Payments on redemptionPinnacle Series Units (1,235,984) (1,063,405)Series F Units (4,946) –Series I Units – (23,003)Series M Units (3,384,911) (1,453,933)

(1,250,561) (257,417)


Pinnacle Series Units (54,460) 1,427,456Series F Units 118,875 26,967Series I Units 6,935 1,142Series M Units (22,527) 1,935,066

48,823 3,390,631


Pinnacle Series Units 10,501,694 9,275,890Series F Units 246,352 86,020Series I Units 144,594 121,501Series M Units 15,074,258 12,405,451

$25,966,898 $21,888,862


2014 2013




Net realized gain (loss) foreign exchange on cash 18,272 (38,834)Change in unrealized appreciation (depreciation) on sale

of non-derivative financial assets 4,914,151 (2,301,265)Purchases of non-derivative financial assets (30,003,000) (8,605,636)Proceeds from sale of non-derivative financial assets 31,435,068 8,865,153Transaction costs 65,578 15,936Accrued investment income (2,896) (6,743)Accrued expenses 13,627 10,701

Net cash provided by (used in) operating activities 1,569,299 332,661


Net cash provided by (used in) financing activities (1,235,073) (224,742)Net gain (loss) foreign exchange on cash (18,272) 38,834Net increase (decrease) in cash 334,226 107,919Cash at beginning of period 1,355,224 768,968


Interest received(1) 754 413Dividends received, net of withholding taxes(1) 201,509 128,730




FOR

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AverageCost ($)

CarryingValue ($)

EQUITIES – 93.5%United States – 93.5%Energy – 13.9%49,746 Denbury Resources Inc. 912,026 979,6999,687 Kinder Morgan Management LLC 766,255 815,7074,632 Pioneer Natural Resources Company 978,976 1,135,639

27,388 Weatherford International Ltd. 581,105 672,034

3,238,362 3,603,079

Materials – 5.6%6,618 Albemarle Corporation 490,178 504,819

12,180 Reliance Steel & Aluminum Co. 950,105 957,804

1,440,283 1,462,623

Industrials – 24.2%4,481 Chart Industries, Inc. 347,831 395,543

29,296 Convanta Holding Corporation 592,437 644,15324,481 Hexcel Corporation 1,115,362 1,068,5989,694 IDEX Corporation 791,529 835,016

13,842 Jacobs Engineering Group, Inc. 879,764 786,80323,907 Quanta Services, Inc. 909,707 881,9683,346 Roper Industries, Inc. 505,989 521,208

12,950 Wabtec Corporation 1,055,316 1,140,693

6,197,935 6,273,982

Consumer Discretionary – 13.4%10,670 Carter’s Inc. 861,346 784,6494,468 Mohawk Industries, Inc. 671,006 659,4238,221 Nordstrom, Inc. 554,185 595,7845,210 PVH Corporation 647,963 648,096

11,365 Ross Stores, Inc. 854,122 801,809

3,588,622 3,489,761

Consumer Staples – 3.4%16,813 Kroger Co., The 850,768 886,353

Health Care – 3.3%18,223 CareFusion Corporation 638,894 862,217

Financials – 26.5%13,728 CB Richard Ellis Group, Inc. 433,222 469,24819,021 CIT Group, Inc. 900,376 929,09312,515 Euronet Worldwide, Inc. 636,528 644,08211,899 First Republic Bank 666,026 698,06719,624 HCC Insurance Holdings, Inc. 999,064 1,024,59942,946 Host Hotels & Resorts Inc. 1,005,834 1,008,4297,648 PartnerRe Ltd. 885,590 892,093

13,026 SEI Investments Company 461,390 455,39711,213 Waddell & Reed Financial, Inc. 817,292 748,738

6,805,322 6,869,746

Information Technology – 3.2%13,601 Agilent Technologies, Inc. 742,504 833,249



NET ASSETS – 100.0% 25,966,898



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and medium capitalization companies located in the U.S. The Fund’s investments may also include up to 15% cash and cashequivalents and some non-U.S. securities.










evaluation of Investments at FVTPL 12,014






June 30, 2014






US Dollar 25,819,847 99.4 2,581,985 9.9

December 30, 2013






US Dollar 24,967,059 96.3 2,496,706 9.6

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January 1, 2013






US Dollar 17,812,374 96.3 1,781,237 9.6



iii) Liquidity risk





Less than3 months



$25,966,898 $15,798 $25,918,075 $456,518 $18,498,231 $104,267






United States Equities

Energy 13.9 8.3 7.4








Utilities – 7.5 8.9

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Equities $24,281,010 $ – $ – $24,281,010


Equities $24,967,060 $ – $ – $24,967,060


Equities $17,812,375 $ – $ – $17,812,375


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78


Scotia Private U.S. Mid Cap Growth Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $136,061,536 $104,441,280 $58,447,621Cash 6,448,513 3,733,190 3,370,717Accrued investment income 28,706 19,011 3,200Receivable for securities sold 273,500 355,890 –Subscriptions receivable 329,473 69,747 29,658

143,141,728 108,619,118 61,851,196

LIABILITIESCurrent liabilitiesPayable for securities purchased 1,505,591 1,617,462 –Redemptions payable 17,780 16,060 24,162Accrued expenses 16,230 – –

1,539,601 1,633,522 24,162



Pinnacle Series Units $ 11,533,422 $ 10,720,021 $ 7,397,334Series F Units $ 126,177 $ 88,281 $ 45,216Series I Units $115,653,534 $ 82,428,637 $43,280,594Series M Units $ 14,288,994 $ 13,748,657 $11,103,890

UNITS OUTSTANDINGPinnacle Series Units 499,091 477,061 449,479Series F Units 5,656 4,056 2,825Series I Units 4,946,698 3,634,890 2,607,812Series M Units 620,691 613,846 677,042




2014 2013


Dividends $ 615,611 $ 162,842Interest for distribution purposes 946 1,249Net realized gain (loss) on non-derivative financial assets 5,564,334 12,044,709Net gain (loss) foreign exchange (86,013) 121,606Change in unrealized appreciation (depreciation) of non-

derivative financial assets (2,130,541) (503,408)Net gain (loss) on investments 3,964,337 11,826,998Securities lending 10,423 9,503


EXPENSESManagement fees (note 5) 38,691 32,836Harmonized Sales Tax/Goods and Services Tax 8,401 8,845Audit fees 1,281 950Independent Review Committee fees 196 218Custodian fees 4,410 4,700Filing fees 9,293 8,926Legal fees 1,114 730Unitholder reporting costs 3,293 5,039Unitholder administration and service fees 37,857 41,058Overdraft charges 21 –Foreign withholding taxes/tax reclaims 92,498 21,417Transaction costs 58,915 68,822Total expenses 255,970 193,541Absorbed expenses (13,647) (28,325)

Net expenses 242,323 165,216



Pinnacle Series Units $ 314,164 $ 1,325,083Series F Units $ 3,001 $ 8,653Series I Units $ 3,020,624 $ 8,379,946Series M Units $ 394,648 $ 1,957,603



WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 481,787 447,382Series F Units 4,567 3,103Series I Units 4,250,987 2,806,854Series M Units 610,080 664,186


Portfolio Advisor: William Blair & Company L.L.C.


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Scotia Private U.S. Mid Cap Growth Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $ 10,720,021 $ 7,397,334Series F Units 88,281 45,216Series I Units 82,428,637 43,280,594Series M Units 13,748,657 11,103,890

106,985,596 61,827,034


Pinnacle Series Units 314,164 1,325,083Series F Units 3,001 8,653Series I Units 3,020,624 8,379,946Series M Units 394,648 1,957,603

3,732,437 11,671,285



Payments on redemptionPinnacle Series Units (1,380,518) (921,918)Series F Units (1,382) –Series I Units (5,329,024) (53,502)Series M Units (2,481,906) (1,865,757)

30,884,094 7,714,335


Pinnacle Series Units 813,401 1,473,044

Series F Units 37,896 15,075Series I Units 33,224,897 16,050,471Series M Units 540,337 1,847,030

34,616,531 19,385,620



$141,602,127 $81,212,654


2014 2013




Net realized gain (loss) foreign exchange on cash 86,013 (121,606)Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets 2,130,541 503,408Purchases of non-derivative financial assets (73,997,850) (95,922,385)Proceeds from sale of non-derivative financial assets 45,722,991 86,474,143Transaction costs 58,915 68,822Accrued investment income (9,695) (7,102)Accrued expenses 16,230 12,196



Net cash provided by (used in) financing activities 30,626,088 7,642,388Net gain (loss) foreign exchange on cash (86,013) 121,606Net increase (decrease) in cash 2,801,336 (1,723,560)Cash at beginning of period 3,733,190 3,370,717






FOR

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AverageCost ($)

CarryingValue ($)

EQUITIES – 96.1%Energy – 6.5%11,700 Concho Resources Inc. 1,746,309 1,803,66834,980 FMC Technologies, Inc. 2,026,985 2,279,03311,318 Helemerich & Payne, Inc. 955,017 1,401,61920,570 Range Resources Corporation 1,707,840 1,908,12520,800 Whiting Petroleum Corporation 1,319,015 1,780,451

7,755,166 9,172,896

Materials – 4.9%20,576 Airgas, Inc. 2,170,231 2,390,73623,790 Cytec Industries Inc. 2,030,640 2,676,22917,030 International Flavors & Fragrances Inc. 1,828,459 1,894,604

6,029,330 6,961,569

Industrials – 14.1%37,185 Ametek Inc. 1,606,619 2,073,98849,600 Equifax Inc. 3,301,501 3,838,50547,460 Fastenal Company 2,360,791 2,505,80912,090 Jacobs Engineering Group, Inc. 712,485 687,21635,500 Old Dominion Freight Line Inc. 2,056,674 2,411,76127,440 Robert Half International, Inc. 1,401,609 1,397,55628,370 Stericycle, Inc. 3,213,076 3,584,15911,910 TransDigm Group Inc. 1,924,843 2,125,23412,480 United Rental, Inc. 1,402,310 1,395,003

17,979,908 20,019,231

Consumer Discretionary – 18.0%34,011 BorgWarner, Inc. 2,341,906 2,365,3932,520 Chipotle Mexican Grill, Inc. 1,115,576 1,592,939

32,199 Dollar General Corp. 1,763,229 1,970,40062,150 Fortune Brands Home & Security Inc. 2,880,825 2,647,54519,370 Fossil, Inc. 2,124,604 2,159,891

103,717 Genpact Limited 1,935,644 1,939,70130,690 Harley-Davidson, Inc. 1,868,592 2,287,00020,670 Marriott International Inc., Class A 1,403,608 1,413,51824,210 O’Reilly Automotive, Inc. 2,894,497 3,889,75830,560 Six Flags Entertainment Corporation 1,356,699 1,388,06850,057 Williams-Sonoma, Inc 3,275,676 3,834,353

22,960,856 25,488,566

Consumer Staples – 6.8%39,530 Church & Dwight Co., Inc. 2,788,219 2,949,96925,855 Green Mountain Coffee Roasters 2,027,705 3,437,16432,770 Mead Johnson Nutrition Company 2,723,541 3,257,282

7,539,465 9,644,415

Health Care – 16.0%28,350 Align Technology Inc. 1,605,269 1,694,93930,874 BioMarin Pharmaceutical Inc. 2,082,973 2,049,06632,640 Catamaran Corporation 1,712,535 1,537,73755,490 Healthsouth Corporation 1,816,230 2,123,484

120,243 HMS Holdings Corporation 3,085,716 2,618,21717,792 Idexx Laboratories Inc. 1,852,452 2,535,34226,270 Medivation Inc. 2,157,340 2,160,25312,610 Salix Pharmaceuticals, Ltd. 1,292,282 1,659,42334,850 Sirona Dental Systems, Inc. 2,572,567 3,065,83618,980 Techne Corporation 1,873,619 1,874,43040,310 Zoetis Inc. 1,419,098 1,387,761

21,470,081 22,706,488

Financials – 6.7%15,240 Affiliated Managers Group, Inc. 2,847,267 3,318,49749,194 LPL Financial Holdings Inc. 2,212,196 2,610,48227,440 Portfolio Recovery Associates, Inc. 1,709,679 1,742,70113,447 Signature Bank 1,246,806 1,810,168

8,015,948 9,481,848


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Information Technology – 20.4%44,340 Akamai Technologies, Inc. 2,080,973 2,888,38714,560 Amphenol Corporation 1,187,226 1,496,48025,161 ANSYS, Inc. 2,218,130 2,035,23510,664 CoStar Group Inc. 1,425,903 1,799,48021,190 FactSet Research Systems Inc. 2,339,258 2,719,11343,624 Gartner Inc., Class A 3,028,406 3,280,61948,630 Guidewire Software Inc. 2,189,021 2,109,47626,270 IPG Photonics Corporation 1,859,333 1,928,19740,368 NeuStar Inc. 1,769,124 1,120,59278,660 Pandora Media Inc. 2,134,897 2,475,59150,710 Red Hat, Inc. 2,824,609 2,989,01918,668 Solarwinds Inc. 910,460 769,95086,084 Vantiv, Inc. 2,836,655 3,085,775

26,803,995 28,697,914

Telecommunication Services – 2.7%35,630 SBA Communications Corp., Class A 3,497,552 3,888,609



NET ASSETS – 100.0% 141,602,127



FOR

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81




and medium capitalization companies traded on U.S. stock exchanges. The Fund’s investments may also include up to 15% cashand cash equivalents.
















June 30, 2014






US Dollar 142,347,115 100.5 14,234,712 10.1

December 30, 2013






US Dollar 104,441,280 97.6 10,444,128 9.8

FOR

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82




January 1, 2013






US Dollar 58,447,622 94.5 5,844,762 9.5



iii) Liquidity risk




Less than3 months

Ondemand

Less than3 months

Accounts payable and accrued liabilities $ – $1,539,601 $ – $1,633,522 $ – $24,162


$141,602,127 $1,539,601 $106,985,596 $1,633,522 $61,827,034 $24,162







Energy 6.5 4.2 8.8





Health Care 16.0 10.8 16.3



Telecommunication Services 2.7 4.2 –

FOR

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83







Equities $136,061,536 $ – $ – $136,061,536


Equities $104,441,280 $ – $ – $104,441,280


Equities $ 58,447,621 $ – $ – $ 58,447,621


FOR

EIG

NE

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ITY

FUN

DS

84


Scotia Private U.S. Large Cap Growth Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $54,919,179 $53,219,185 $37,941,991Cash 1,912,839 1,059,255 392,017Accrued investment income 20,299 38,605 29,202Receivable for securities sold – – 11,768Subscriptions receivable 79,905 45,080 3,359

56,932,222 54,362,125 38,378,337

LIABILITIESCurrent liabilitiesPayable for securities purchased – – 228,418Redemptions payable 63,678 65,930 6,561Accrued expenses 12,475 – –

76,153 65,930 234,979








2014 2013


Dividends $ 324,990 $ 322,778Interest for distribution purposes 714 362Net realized gain (loss) on non-derivative financial assets 10,543,020 2,398,681Net gain (loss) foreign exchange 25,725 33,301Change in unrealized appreciation (depreciation) of non-

derivative financial assets (8,068,440) 3,559,735

Net gain (loss) on investments 2,826,009 6,314,857Securities lending 201 1,412


EXPENSESManagement fees (note 5) 1,886 713Harmonized Sales Tax/Goods and Services Tax 5,947 7,179Audit fees 525 576Independent Review Committee fees 88 128Custodian fees 8,433 12,560Filing fees 8,690 8,281Legal fees 501 422Unitholder reporting costs 4,394 6,293Unitholder administration and service fees 41,320 46,351Overdraft charges – 89Foreign withholding taxes/tax reclaims 49,287 44,279Transaction costs 22,132 10,569


Net expenses 141,812 134,561



Pinnacle Series Units $ 2,454,295 $5,617,859Series F Units $ 14,943 $ 19,865Series I Units $ 215,160 $ 543,984





Portfolio Advisor: Polen Capital Management, LLC


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Scotia Private U.S. Large Cap Growth Pool (Unaudited – Continued)


2014 2013



54,296,195 38,143,358



2,684,398 6,181,708




(124,524) 1,136,051



2,559,874 7,317,759



$56,856,069 $45,461,117


2014 2013




Net realized gain (loss) foreign exchange on cash (25,725) (33,301)Change in unrealized appreciation (depreciation) on

sale of non-derivative financial assets 8,068,440 (3,559,735)Purchases of non-derivative financial assets (48,579,406) (15,165,143)Proceeds from sale of non-derivative financial assets 49,331,860 14,452,894Transaction costs 22,132 10,569Accrued investment income 18,306 (8,368)Accrued expenses 12,475 11,921

Net cash provided by (used in) operating activities 989,460 (508,137)


Net cash provided by (used in) financing activities (161,601) 1,154,878Net gain (loss) foreign exchange on cash 25,725 33,301Net increase (decrease) in cash 827,859 646,741Cash at beginning of period 1,059,255 392,017


Interest received(1) 648 351Dividends received, net of withholding taxes(1) 294,075 270,142




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AverageCost ($)

CarryingValue ($)

EQUITIES – 96.6%United States – 92.3%Industrials – 6.5%33,480 Fastenal Company 1,678,346 1,767,6897,042 W.W. Grainger, Inc. 1,905,668 1,910,267

3,584,014 3,677,956

Consumer Discretionary – 16.2%39,166 NIKE, Inc., Class B 3,265,474 3,239,738

859 priceline.com Incorporated 1,160,451 1,102,45735,854 Starbucks Corporation 2,760,877 2,959,84733,474 TJX Companies, Inc., The 2,265,281 1,898,077

9,452,083 9,200,119

Health Care – 16.4%81,258 Abbott Laboratories 3,316,809 3,544,32028,265 Allergan, Inc. 3,260,617 5,098,9722,347 Regeneron Pharmaceuticals, Inc. 829,851 707,275

7,407,277 9,350,567

Financials – 4.0%25,339 T. Rowe Price Group Inc. 2,231,248 2,281,845

Information Technology – 49.2%30,387 Accenture PLC, Class A 2,636,353 2,619,88823,863 Apple Inc. 1,151,782 2,365,83226,754 Automatic Data Processing, Inc. 2,281,644 2,262,84714,438 FactSet Research Systems Inc. 1,672,907 1,852,69225,178 Gartner Inc., Class A 1,875,810 1,893,4403,955 Google Inc. Class A 3,732,603 2,466,9493,955 Google Inc. Class C 51,025 2,427,329

13,827 MasterCard, Inc., Class A 725,438 1,083,77981,322 Oracle Corporation 3,068,090 3,516,31344,021 QUALCOMM, Inc. 3,243,219 3,719,52716,592 Visa Inc. 3,795,279 3,729,810

24,234,150 27,938,406

Foreign Equities – 4.3%Switzerland – 4.3%29,812 Nestle SA 2,549,959 2,470,286



NET ASSETS – 100.0% 56,856,069



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns through capital growth by investing primarily in large

capitalization stocks of U.S. corporations. The Fund’s investments may also include up to 15% cash and cash equivalents andsome non-U.S. securities.
















June 30, 2014






US Dollar 56,701,779 99.7 5,670,178 10.0

December 31, 2013






US Dollar 53,219,185 98.0 5,321,919 9.8

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January 1, 2013






US Dollar 37,941,991 99.5 3,794,199 10.0



iii) Liquidity risk





Less than3 months



$56,856,069 $76,153 $54,296,195 $65,930 $38,143,358 $234,979






Canadian Equities – – 0.9


Energy – 5.2 4.6

Materials – 3.8 3.1



Consumer Staples – 10.7 13.9

Health Care 16.4 12.6 12.0



Telecommunication Services – – 3.3

Utilities – – 0.3

Index Unit – 0.2 0.6

Foreign Equities 4.3 – –

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Equities $54,919,179 $ – $ – $54,919,179


Equities $53,219,185 $ – $ – $53,219,185


Equities $37,941,991 $ – $ – $37,941,991


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Scotia Private International Equity Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013



spot contracts 17,474 – 242Cash 37,867,419 44,657,517 23,780,282Accrued investment income 573,003 230,717 297,943Receivable for securities sold 1,993,243 1,442,418 1,498,736Subscriptions receivable 2,925,569 143,590 304,614

523,803,981 773,869,590 449,638,158

LIABILITIESCurrent liabilitiesPayable for securities purchased 15,536,060 1,177,821 1,196,779Redemptions payable 41,121 118,592 17,235Accrued expenses 26,879 – –Unrealized loss on currency spot

contracts 8,568 11,440 10,378

15,612,628 1,307,853 1,224,392








2014 2013


Dividends $ 11,806,935 $ 8,132,530Interest for distribution purposes 190,232 310,552Net realized gain (loss) on non-derivative financial

assets 80,856,634 8,965,712Net gain (loss) foreign exchange (457,270) (197,327)Change in unrealized appreciation (depreciation) of

non-derivative financial assets (99,373,050) 19,424,078Change in unrealized appreciation (depreciation) of

currency spots 20,346 9,697

Net gain (loss) on investments (6,956,173) 36,645,242Securities lending 65,143 149,443

Total income (loss) (6,891,030) 36,794,685

EXPENSESManagement fees (note 5) 4,101 2,389Harmonized Sales Tax/Goods and Services Tax 12,163 12,613Audit fees 6,315 6,450Independent Review Committee fees 887 1,576Custodian fees 37,893 39,135Filing fees 8,595 8,281Legal fees 4,988 5,032Unitholder reporting costs 5,835 7,247Unitholder administration and service fees 75,195 85,672Foreign withholding taxes/tax reclaims 1,146,882 1,026,684Transaction costs 393,177 229,432

Total expenses 1,696,031 1,424,511Absorbed expenses (1,186) (1,565)

Net expenses 1,694,845 1,422,946

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ (8,585,875) $35,371,739


Pinnacle Series Units $ (438,360) $ 3,453,035Series F Units $ (10,473) $ 30,568Series I Units $ (8,137,042) $31,888,136


Pinnacle Series Units $ (0.09) $ 0.70Series F Units $ (0.15) $ 0.63Series I Units $ (0.19) $ 0.69



Portfolio Advisor: Thornburg Investment Management, Inc.


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Scotia Private International Equity Pool (Unaudited – Continued)


2014 2013



772,561,737 448,413,766

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITSFROM OPERATIONS

Pinnacle Series Units (438,360) 3,453,035Series F Units (10,473) 30,568Series I Units (8,137,042) 31,888,136

(8,585,875) 35,371,739




(255,784,509) 98,110,196

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS

Pinnacle Series Units 2,265,783 2,373,798Series F Units 61,408 111,876Series I Units (266,697,575) 130,996,261

(264,370,384) 133,481,935



$ 508,191,353 $581,895,701


2014 2013


of redeemable units $ (8,585,875) $ 35,371,739Adjustments For:


Net realized gain (loss) foreign exchange on cash 457,270 197,327Change in unrealized appreciation (depreciation) on


currency spot contracts (20,346) (9,697)Purchases of non-derivative financial assets (205,545,074) (181,112,885)Proceeds from sale of non-derivative financial assets 447,410,970 99,397,411Transaction costs 393,177 229,432Accrued investment income (342,286) (814,064)Accrued expenses 26,879 24,540



Net cash provided by (used in) financing activities (258,643,959) 94,687,658Net gain (loss) foreign exchange on cash (457,270) (197,327)Net increase (decrease) in cash (6,332,828) 19,581,671Cash at beginning of period 44,657,517 23,780,282






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AverageCost ($)

CarryingValue ($)

EQUITIES – 94.6%Belgium – 1.6%

65,396 Anheuser-Busch InBev NV 7,083,186 8,018,924

Brazil – 0.5%60,161 Embraer SA-ADR SA ADR 1,951,917 2,337,213

Denmark – 2.6%268,544 Novo Nordisk A/S, Class B 6,980,881 13,224,558

Finland – 1.1%120,236 Kone Oyj 5,409,538 5,355,750

France – 10.6%112,497 Accor SA 6,453,877 6,236,61638,968 Air Liquide SA 4,819,785 5,612,57053,002 Compagnie Generale des Etablissements

Michelin, Class B 4,836,777 6,764,40861,797 LVMH Moet Hennessy Louis Vuitton SA 9,762,801 12,699,371

116,041 Publicis Groupe 7,451,213 10,508,937159,306 Total SA 11,723,393 12,278,980

45,047,846 54,100,882

Germany – 4.8%75,512 Adidas-Salomon AG 6,840,909 8,159,761

112,743 Deutsche Bank AG 5,202,468 4,231,582114,654 Fresenius Medical Care AG & Co. KGaA 7,559,304 8,230,93348,184 SAP AG 3,101,540 3,970,305

22,704,221 24,592,581

Hong Kong – 8.8%1,989,942 AIA Group Ltd. 8,632,190 10,683,233

914,883 China Mobile Limited 10,024,174 9,475,619343,264 Hong Kong Exchanges & Clearing Limited 5,991,508 6,835,970336,500 HSBC Holdings PLC Ord 3,367,834 3,642,741

1,016,024 Sands China Ltd. 8,658,943 8,188,004349,486 Tencent Holdings Limited 5,508,670 5,701,463

42,183,319 44,527,030

Italy – 1.3%1,992,876 Intesa Sanpaolo SpA 5,170,423 6,554,115

Japan – 13.6%40,887 FANUC Corp. 6,162,134 7,537,961

180,923 Japan Tobacco Inc. 6,551,211 7,049,217676,389 Kubota Corporation 10,043,291 10,252,154248,901 Mitsubishi Estate Company Ltd. 7,138,447 6,569,733

1,126,641 Mitsubishi UFJ Financial Group, Inc. 6,476,326 7,383,5911,698,346 Mitsui Trust Holdings Inc. 8,819,982 8,297,493

77,346 SOFTBANK Corp. 4,364,865 6,139,438244,564 Toyota Motor Corporation 11,399,572 15,695,007

60,955,828 68,924,594

Netherlands – 4.3%77,344 ASML Holding NV 5,878,713 7,678,869

710,866 ING Groep NV 9,143,456 10,640,69499,883 Koninklijke Philips Electronics NV 3,485,936 3,377,902

18,508,105 21,697,465

Spain – 2.9%144,857 Amadeus Global Travel Distribution SA 5,232,044 6,366,753634,708 Banco Bilbao Vizcaya Argentaria, SA 7,974,781 8,620,272

13,206,825 14,987,025

Sweden – 2.3%162,531 Hennes & Mauritz AB, Class B 5,905,535 7,566,955141,888 Svenska Cellulosa AB SCA, Class B 4,329,653 3,940,156

10,235,188 11,507,111


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Switzerland – 12.0%

44,832 Holcim Ltd. 4,368,532 4,204,209128,160 Julius Baer Group Ltd. 4,832,041 5,637,443176,057 Nestle SA 12,975,801 14,552,505152,011 Novartis AG 10,719,498 14,689,13039,589 Roche Holdings AG 10,178,862 12,602,419

488,079 UBS AG 10,876,541 9,540,938

53,951,275 61,226,644

Taiwan – 1.7%386,278 Taiwan Semiconductor Manufacturing

Company Ltd. ADR 7,829,926 8,814,823

United Kingdom – 18.8%749,982 Aviva PLC 7,069,815 7,011,260788,019 BT Group PLC 5,521,695 5,530,494211,652 Burberry Group PLC 4,446,332 5,724,581174,404 Carnival PLC 6,739,114 7,019,962322,724 Compass Group PLC 4,726,912 6,009,945512,772 Experian PLC 9,907,991 9,238,860

1,631,103 Kingfisher PLC 7,610,053 10,678,823164,762 Liberty Global PLC 7,440,576 7,439,725258,015 Pearson PLC 4,501,680 5,431,835137,591 Reckitt Benkiser Group PLC 9,311,538 12,800,255

29,114,984 Rolls-Royce Group PLC* 53,901 53,155131,169 SABMiller PLC 5,314,081 8,107,085277,216 Standard Chartered PLC 6,552,310 6,043,440182,688 WPP Group PLC 3,192,608 4,243,667

82,388,606 95,333,087

United States – 7.7%100,973 Accenture PLC, Class A 7,051,143 8,705,62844,439 Actavis Inc. 10,365,405 10,523,29236,007 Baidu, Inc. 4,829,945 7,176,12485,042 Ensco PLC 4,865,810 5,041,69761,817 Schlumberger Limited 4,831,353 7,778,730

31,943,656 39,225,471


Currency Spot Contracts – 0.0% 8,906OTHER ASSETS, LESS LIABILITIES – 5.4% 27,755,174

NET ASSETS – 100.0% 508,191,353




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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2014CURRENCY SPOT CONTRACTS


June 30, 2014 ($)


(Depreciation)

Jun. 30, 2014 European Euro 347,913 Canadian Dollar 506,269 506,270 1,959Jul. 2, 2014 British Pound 277,473 Canadian Dollar 504,043 504,044 2,533Jul. 2, 2014 Canadian Dollar 505,074 European Euro 345,664 504,943 131Jul. 2, 2014 Canadian Dollar 498,949 U.S. Dollar 466,805 498,010 939Jul. 2, 2014 Canadian Dollar 495,140 European Euro 340,265 497,056 (1,916)Jul. 2, 2014 Canadian Dollar 494,175 Hong Kong Dollar 3,583,221 493,234 941Jul. 2, 2014 Swiss Franc 421,083 Canadian Dollar 503,990 503,991 2,557Jul. 2, 2014 European Euro 224,063 Canadian Dollar 327,058 327,059 251Jul. 2, 2014 U.S. Dollar 1,587,285 Canadian Dollar 1,694,062 1,694,060 (667)Jul. 3, 2014 British Pound 972,346 Canadian Dollar 1,771,877 1,771,881 3,316Jul. 3, 2014 Swiss Franc 1,330,165 Canadian Dollar 1,597,834 1,597,840 2,301Jul. 3, 2014 Swiss Franc 421,124 Canadian Dollar 506,829 506,831 (233)Jul. 3, 2014 Danish Krone 1,509,474 Canadian Dollar 295,548 295,555 188Jul. 3, 2014 European Euro 1,620,468 Canadian Dollar 2,365,429 2,365,433 1,734Jul. 3, 2014 European Euro 349,852 Canadian Dollar 511,208 511,209 (147)Jul. 3, 2014 Hong Kong Dollar 14,649,511 Canadian Dollar 2,019,717 2,019,731 (3,212)Jul. 3, 2014 Japanese Yen 225,854,866 Canadian Dollar 2,380,645 2,380,887 (2,393)Jul. 3, 2014 Swedish Krona 1,873,286 Canadian Dollar 298,333 298,326 625

8,906

The currency spot contracts outstanding at June 30, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.

Portfolio Adviser: Thornburg Investment Management, Inc.


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capitalization stocks of companies in Europe, Australia and the Far East. The Fund may invest up to 15% of its assets in cashand cash equivalents and up to 10% of its assets in securities of issuers in emerging markets.
















June 30, 2014






European Euro 138,522,944 27.3 13,852,294 2.7

British Pound 90,169,284 17.7 9,016,928 1.8

Japanese Yen 71,607,922 14.1 7,160,792 1.4

Swiss Franc 63,835,306 12.6 6,383,531 1.3

US Dollar 59,257,414 11.7 5,925,741 1.2

Hong Kong Dollar 46,053,529 9.1 4,605,353 0.9

Danish Krone 13,520,113 2.7 1,352,011 0.3

Swedish Krona 11,805,437 2.3 1,180,544 0.2

Total 494,771,949 97.5 49,477,194 9.8

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December 31, 2013






European Euro 189,200,012 24.5 18,920,001 2.5Japanese Yen 140,518,554 18.2 14,051,855 1.8British Pound 134,708,496 17.4 13,470,850 1.7US Dollar 74,339,182 9.6 7,433,918 1.0Swiss Franc 69,034,550 8.9 6,903,455 0.9Hong Kong Dollar 60,003,879 7.8 6,000,388 0.8Swedish Krona 28,955,895 3.7 2,895,590 0.4Danish Krone 19,748,629 2.6 1,974,863 0.3South Korean Won 5,924,234 0.8 592,423 0.1Brazilian Real 3,074,733 0.4 307,473 0.0Mexican Peso 2,628,222 0.3 262,822 0.0

Total 728,136,386 94.2 72,813,639 9.4

January 1, 2013






European Euro 111,149,674 24.8 11,114,967 2.5British Pound 92,813,529 20.7 9,281,353 2.1US Dollar 55,973,834 12.5 5,597,383 1.3Hong Kong Dollar 43,605,325 9.7 4,360,533 1.0Japanese Yen 41,904,224 9.3 4,190,422 0.9Swiss Franc 34,444,303 7.7 3,444,430 0.8Swedish Krona 17,192,510 3.8 1,719,251 0.4Danish Krone 11,924,476 2.7 1,192,448 0.3Brazilian Real 5,576,716 1.2 557,672 0.1South Korean Won 4,578,955 1.0 457,896 0.1Mexican Peso 4,361,096 1.0 436,110 0.1

Total 423,524,642 94.4 42,352,464 9.4



iii) Liquidity risk



On demandLess than 3

months On demandLess than3 months On demand

Less than3 months

Accounts payable and accrued liabilities $ – $15,604,060 $ – $1,296,413 $ – $1,214,014Unrealized loss on currency spot contracts – 8,568 – 11,440 – 10,378Redeemable units 508,191,353 – 772,561,737 – 448,413,766 –

$508,191,353 $15,612,628 $772,561,737 $1,307,853 $448,413,766 $1,224,392


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Argentina – 0.4 –

Belgium 1.6 1.5 –

Brazil 0.5 0.9 3.0

China – 0.8 1.4

Denmark 2.6 2.6 2.7

Finland 1.1 1.0 –

France 10.6 8.4 9.0

Germany 4.8 7.2 15.1

Hong Kong 8.8 7.0 8.3

Italy 1.3 1.9 –

Israel – – 1.5

Japan 13.6 18.0 9.3

Mexico – 0.3 1.0

Netherlands 4.3 3.8 1.1

South Korea – 0.8 1.0

Spain 2.9 2.1 –

Sweden 2.3 3.8 4.1

Switzerland 12.0 8.9 7.7

Taiwan 1.7 0.7 –

United Kingdom 18.8 17.4 21.2

United States 7.7 6.7 8.1

Currency Spot Contracts 0.0 0.0 0.0




Equities $57,817,232 $422,610,041 $ – $480,427,273

Currency Forward Contracts – Assets 17,474 – – 17,474

57,834,706 422,610,041 – 480,444,747

Currency Forward Contracts – Liabilities (8,568) – – (8,568)

$57,826,138 $422,610,041 $ – $480,436,179


Equities $80,140,193 $647,255,155 $ – $727,395,348

Currency Spot Contracts – Liabilities (11,440) – – (11,440)

$80,128,753 $647,255,155 $ – $727,383,908


Equities $65,425,358 $358,330,983 $ – $423,756,341

Currency Spot Contracts – Assets 242 – – 242

$65,425,600 $358,330,983 $ – $423,756,583

Currency Spot Contracts – Liabilities (10,378) – (10,378)

$65,415,222 $358,330,983 $ – $423,746,205


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Scotia Private International Small to Mid Cap Value Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $34,939,414 $33,225,426 $27,348,226Unrealized gain on currency spot

contracts 37 148 –Cash 339,420 301,105 158,755Accrued investment income 36,109 25,485 27,365Receivable for securities sold 153,357 – –Subscriptions receivable 49,286 164,318 1,733

35,517,623 33,716,482 27,536,079

LIABILITIESCurrent liabilitiesPayable for securities purchased 130,884 – –Redemptions payable 31,683 17,862 4,942Accrued expenses 16,153 – –Unrealized loss on currency

spot contracts 1 – –

178,721 17,862 4,942








2014 2013


Dividends $ 545,846 $ 500,546Interest for distribution purposes 595 1,390Capital gains distributions received (617) 1,854Net realized gain (loss) on non-derivative financial assets 2,668,297 2,384,081Net gain (loss) foreign exchange (13,673) (9,119)Change in unrealized appreciation (depreciation) of non-

derivative financial assets (145,841) 1,209,729Change in unrealized appreciation (depreciation) of

currency spots (113) (132)



EXPENSESManagement fees (note 5) 2,343 730Harmonized Sales Tax/Goods and Services Tax 7,970 9,376Audit fees 283 407Independent Review Committee fees 54 87Custodian fees 36,989 41,621Filing fees 8,606 8,281Legal fees 308 291Unitholder reporting costs 4,356 6,290Unitholder administration and service fees 35,791 40,124Overdraft charges 730 1,043Foreign withholding taxes/tax reclaims 57,137 56,937Transaction costs 23,258 22,382


Net expenses 171,073 154,001



Pinnacle Series Units $2,657,281 $3,603,418Series F Units $ 27,867 $ 19,044Series I Units $ 200,428 $ 315,177





Portfolio Advisor: Munder Capital Management


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Scotia Private International Small to Mid Cap Value Pool (Unaudited – Continued)


2014 2013



33,698,620 27,531,137



2,885,576 3,937,639




(1,245,294) (3,044,404)


Pinnacle Series Units 915,862 983,768Series F Units 686,691 35,906Series I Units 37,729 (126,439)

1,640,282 893,235



$35,338,902 $28,424,372


2014 2013





sale of non-derivative financial assets 145,841 (1,209,729)Change in unrealized appreciation (depreciation) of

currency spot contracts 113 132Purchases of non-derivative financial assets (12,497,653) (10,131,429)Proceeds from sale of non-derivative financial assets 13,260,391 12,967,431Transaction costs 23,258 22,382Accrued investment income (10,624) (11,907)Accrued expenses 16,153 11,334



Net cash provided by (used in) financing activities (1,116,443) (3,036,416)Net gain (loss) foreign exchange on cash (13,673) (9,119)Net increase (decrease) in cash 51,988 174,475Cash at beginning of period 301,105 158,755


Interest received(1) 642 1,402Dividends received, net of withholding taxes(1) 478,038 431,690




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AverageCost ($)

CarryingValue ($)

EQUITIES – 98.9%CANADIAN EQUITIES – 9.1%Energy – 3.0%

35,533 Bankers Petroleum Ltd. 119,447 242,33510,765 Birchcliff Energy Ltd. 109,672 151,78724,772 Gran Tierra Energy, Inc. 142,189 214,7732,647 Parkland Fuel Corporation 44,197 54,422

19,775 Raging River Exploration Inc. 126,326 214,5599,871 Whitecap Resources, Inc. 88,850 162,575

630,681 1,040,451

Materials – 1.8%4,686 Canfor Corporation 73,150 109,465

29,785 Nevsun Resources Ltd. 122,239 119,14082,721 OceanGold Corporation 180,135 273,8074,172 Stella-Jones Inc. 124,535 122,240

500,059 624,652

Industrials – 1.6%2,278 AG Growth International, Inc. 104,628 108,0003,799 Black Diamond Group Ltd. 84,187 130,3822,930 Stantec Inc. 99,486 193,6145,812 TransForce, Inc. 142,995 142,801

431,296 574,797

Consumer Discretionary – 0.3%20,357 Entertainment One Ltd 134,174 115,056

Financials – 1.5%4,827 Canadian Apartment Properties Real Estate

Investment Trust 85,911 110,3456,899 Gluskin Sheff + Associates Inc. 160,030 219,6644,122 Home Capital Group Inc. 84,452 197,155

330,393 527,164

Information Technology – 0.4%551 Constellation Software Inc. 100,500 149,850

Utilities – 0.5%6,609 Capital Power Corporation 141,754 174,279

TOTAL CANADIAN EQUITIES 2,268,857 3,206,249

FOREIGN EQUITIES – 89.8%Australia – 4.9%

20,051 Aristocrat Leisure Ltd. 110,555 106,190113,089 Beach Energy Limited 132,849 191,30217,551 BlueScope Steel Limited 116,694 95,65420,049 Challenger Financial Services Group Limited 86,350 150,00048,462 CSR Ltd. 173,024 170,09873,589 Drillsearch Energy Ltd. 95,429 108,15733,279 Echo Entertainment Group Ltd. 106,489 105,15331,476 G8 Education Limited 139,857 145,61017,210 iiNET Limited 63,654 126,65924,064 Independence Group NL 107,873 105,47630,113 Investa Office Fund 87,120 103,03613,991 IOOF Holdings Limited 120,156 118,19924,200 Primary Health Care Ltd. 81,578 110,49335,501 RCR Tomlinson Limited 78,020 100,034

1,499,648 1,736,061

Austria – 0.8%23,795 Duluxgroup Ltd. 122,569 135,5671,538 Flughafen Wien AG 98,556 152,788

221,125 288,355

Belgium – 0.3%551 Kinepolis 43,720 111,595


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)Denmark – 1.1%

1,828 Jyske Bank AS 75,696 110,7001,896 Pandora AS 30,747 155,1924,128 Topdanmark AS 70,461 134,125

176,904 400,017

Finland – 0.9%5,665 Huhtamaki OYJ 76,243 157,928

25,108 Sponda OYJ 129,864 142,905

206,107 300,833

France – 6.6%2,689 Alten SA 155,149 136,2621,683 Cap Gemini SA 145,009 128,2311,311 Eiffage SA 108,704 95,0295,650 Establissements Maurel et Prom 102,362 103,2241,842 Fonciere des Regions 146,466 212,9651,837 Imerys SA 131,859 165,3842,616 Ingenico SA 96,009 242,8843,981 Korian-Medica 165,004 162,2495,122 Mercialys 124,104 127,3482,982 Nexity SA 138,946 146,0064,621 Teleperformance 194,545 302,4342,525 Valeo SA 176,761 361,2314,388 Zodiac Aerospace 149,478 158,326

1,834,396 2,341,573

Germany – 6.9%8,399 Alstria Office Real Estate Investment Trust AG 93,711 118,6682,206 Bilfinger Berger SE 182,417 268,1732,707 Deutsche Euroshop AG 102,199 142,7104,659 Duerr AG 104,537 441,0945,676 Freenet AG 74,631 192,6281,930 Hannover Rueckversicherung AG 89,053 185,553

15,111 Infineon Technologies AG 137,111 201,524924 Krones AG 83,911 97,718

2,037 Leoni AG 179,379 172,97312,576 SAF-Holland SA 149,123 211,6395,389 Stroeer Media AG 118,521 127,1376,984 TUI AG 89,663 125,4233,129 United Internet AG 158,379 147,074

1,562,635 2,432,314

Hong Kong – 2.5%25,200 Dah Sing Financial Group 126,302 142,23332,000 Great Eagle Holdings Limited 100,735 124,93979,200 Man Wah Holdings Limited 143,290 135,01730,000 Melco International Development Ltd. 88,382 97,079

201,000 PAX Global Technology Ltd. 139,091 140,82242,500 Techtronic Industries Company Ltd. 98,999 145,45482,000 Towngas China Company Limited 61,144 103,134

757,943 888,678

Italy – 3.3%15,443 Amplifon SpA 113,135 103,5016,692 Banca Generali SpA 84,547 196,4717,635 Brembo SpA 95,007 297,360

18,978 Credito Emiliano SpA 97,585 181,0146,885 Gtech Spa 137,497 179,516

11,589 Recordati SpA 99,082 207,883

626,853 1,165,745

Japan – 17.6%10,200 CKD Corporation 123,925 105,08460,000 Clarion Co., Ltd. 100,335 171,58632,000 DAIHEN Corporation 152,506 159,703



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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)Japan (cont’d)

11,600 Doutor Nichires Holdings Co., Ltd. 217,800 219,3603,100 Dr. Ci:Labo Co., Ltd. 125,250 124,987

22,288 Ebara Corp 122,327 150,55426,000 Fujikura Ltd. 121,540 135,2899,000 Hitachi Kokusai Electric Inc. 118,365 133,2272,900 JAFCO Co., Ltd. 157,568 135,713

20,000 Japan Aviation Electronics Industry, Limited. 190,632 460,12413,000 Kagoshima Bank, Ltd., The 109,984 93,7665,100 Komeri Co., Ltd. 153,168 142,119

14,000 Kyowa Exeo Corporation 156,736 212,85314,000 Makino Milling Machine Co., Ltd. 132,824 128,8689,600 Matsui Securities Co. Ltd. 98,534 104,2013,500 Message Co., Ltd. 141,274 142,469

14,300 Net One Systems Co., Ltd. 119,365 105,9613,900 Nihon Kohden Corporation 77,411 208,5934,500 NS Solutions Corporation 110,851 131,233

103 Orix JREIT Inc. 97,223 154,1282,200 PIGEON CORPORATION 52,463 123,8831,900 Relo Holdings Inc. 70,538 130,803

12,000 San-In Godo Bank, Ltd., The 108,265 95,12536,000 SANKYU INC. 174,324 194,75933,000 Sanwa Shutter Corporation 165,672 247,9451,800 Sawai Pharmaceutical Co. Ltd. 113,502 113,330

15,000 Seino Transportation Co. Ltd. 144,088 182,12218,000 Shiga Bank, Ltd., The 125,074 115,8275,600 Sohgo Security Services Company Ltd. 108,811 143,494

13,400 Sumitomo Forestry Co., Ltd. 116,002 174,69539,000 Sumitomo Osaka Cement Company Ltd. 129,547 158,3916,300 Sun Frontier Fudousan Co., Ltd. 105,338 81,053

37,200 Takara Leben Co., Ltd. 125,911 143,7437,700 Tokai Rika Co., Ltd. 129,908 165,1987,000 Tokyo Ohka Kogyo Co., Ltd. 157,864 178,3934,700 Tokyo Seimitsu Co., Ltd. 80,888 90,2644,700 TS Tech Co Ltd. 139,859 146,090

28,000 Tsubakimoto Chain Co. 193,863 246,7294,500 Tsuruha Holdings Inc. 122,059 265,119

4,991,594 6,216,781

Netherlands – 1.6%4,543 Aalberts Industries NV 105,875 158,1093,528 ASM International NV 125,911 155,965

29,930 PostNL NV 155,265 150,6341,150 Wereldhave NV 102,375 114,069

489,426 578,777

New Zealand – 0.7%27,775 Fisher & Paykel Healthcare Corporation Ltd. 111,492 123,253

108,928 Meridian Energy Ltd. 111,031 126,162

222,523 249,415

Norway – 1.4%80,448 BW Offshore Ltd. 111,296 125,9514,993 Leroy Seafood Group ASA 158,162 194,525

17,960 SpareBank 1 SMN 131,559 169,501

401,017 489,977

Singapore – 1.6%72,000 CWT Ltd. 104,258 107,33430,000 M1 Ltd/Singapore 81,185 90,093

117,000 Mapletree Industrial Trust 136,823 143,16949,000 OSIM International Ltd. 60,186 112,812

152,000 Starhill Global REIT 108,266 107,183

490,718 560,591


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)South Korea – 4.0%

2,920 Boryung Pharmaceutical Co., Ltd. 141,202 137,1202,500 Daesang Corporation 109,412 120,9115,840 DGB Financial Group Inc. 98,915 93,3301,210 Fila Korea Ltd. 94,297 122,6224,146 Hansae Co., Ltd. 115,161 119,5171,713 Hanssem Co. Ltd. 112,610 140,4761,593 KEPCO Plant Service & Engineering Co., Ltd. 112,311 116,203

904 LG Innotek Co., Ltd. 111,288 138,15788 Lotte Chilsung Beverage Co., Ltd. 119,693 161,597

4,850 Seah Besteel Corp. 144,889 165,9124,863 SL Corp. 112,331 115,391

1,272,109 1,431,236

Spain – 2.1%25,754 Bankinter, S.A. 147,298 214,61611,073 Distribuidora Internacional de Alimentacion SA 86,308 108,6363,991 Obrascon Huarte Lain SA 134,089 186,6282,399 Red Electrica Corp SA 128,507 234,433

496,202 744,313

Sweden – 2.6%5,085 Bilia AB 134,914 164,333

29,581 Cloetta AB 99,860 107,63317,072 Fastighets AB Balder, Series B 97,734 246,35612,185 Lindab International AB 161,771 152,3886,950 Trelleborg AB 104,921 157,5894,920 Wihlborgs Fastigheter AB 72,458 100,504

671,658 928,803

Switzerland – 8.6%2,745 Actelion Ltd. 129,544 370,1772,494 Adecco SA 206,418 218,7843,060 Aryzta AG 175,081 308,957

638 Bucher Industries AG 121,238 233,66711,418 Clariant, AG 223,979 238,573

265 Georg Fischer AG 153,531 202,552115 Givaudan SA 145,553 204,657195 Helvetia Holding AG 69,007 95,521191 Kaba Holding AG 92,694 100,715293 Kuoni Reisen Holding AG 92,930 120,868

17,033 Logitech International SA 137,683 236,582952 Lonza Group AG 86,972 110,566

12,378 OC Oerlikon Corporation AG 104,220 191,293471 Straumann Holding AG 90,856 116,294

1,080 Swiss Life Holding AG 112,056 273,257

1,941,762 3,022,463

United Kingdom – 19.8%7,241 APR Energy PLC 106,589 85,938

27,835 Ashtead Group PLC 107,784 444,1185,453 Babcock International Group plc 61,145 115,693

59,919 Barratt Developments PLC 128,148 408,09933,586 Beazley PLC 120,498 155,10611,839 Berendsen PLC 91,874 211,83910,181 Bodycote PLC 72,319 127,79623,713 Britvic PLC 214,168 314,7237,624 Close Brothers Group PLC 167,590 177,693

14,333 Countrywide PLC 128,976 134,4945,742 Dialog Semiconductor plc 148,741 212,283

152,273 Dixons Group PLC 136,537 138,28532,975 DS Smith PLC 115,239 166,4193,269 Go-Ahead Group PLC 115,022 141,994

51,320 Hansteen Holdings PLC 84,837 96,320



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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United Kingdom (cont’d)

43,042 Henderson Group PLC 137,711 189,4357,147 Hikma Pharmaceuticals PLC 113,476 218,772

52,983 Howden Joinery Group PLC 46,512 299,22612,834 Inchcape PLC 56,067 148,41612,214 International Personal Finance 69,436 131,43613,155 Investec PLC 120,949 129,46938,593 ITV PLC 46,358 125,3779,170 Jazztel PLC 44,217 139,651

11,357 Keller Group PLC 144,249 190,80910,478 Lancashire Holdings Ltd. 102,061 125,2143,524 London Stock Exchange Group plc 83,718 129,010

17,854 Mondi PLC 165,302 345,68332,266 Moneysupermarket.com 99,584 110,82028,765 Pace PLC 110,543 187,33737,246 Paragon Group Companies PLC 85,869 239,46567,390 Petra Diamonds Ltd. 196,667 231,49111,237 Playtech PLC 146,291 126,32010,612 Restaurant Group PLC 96,738 116,822


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United Kingdom (cont’d)

23,276 Senior PLC 59,420 120,34614,541 SOCO International plc 71,609 109,5367,552 Synergy Health PLC 97,873 194,358

21,245 Tui Travel PLC 128,297 154,19413,016 Unite Group PLC 56,780 93,54629,935 United Drug PLC 145,951 187,756

4,225,145 6,975,289

United States – 2.5%8,905 AerCap Holdings NV 169,604 435,1135,967 iShares MSCI EAFE Index Fund 447,381 435,236

616,985 870,349


Currency Spot Contracts – 0.0% 36OTHER ASSETS, LESS LIABILITIES – 1.1% 399,452

NET ASSETS – 100.0% 35,338,902

CURRENCY SPOT CONTRACTS


June 30, 2014 ($)


(Depreciation)

Jul. 2, 2014 Japanese Yen 4,800,000 Canadian Dollar 50,545 50,551 (1)Jul. 2, 2014 Singapore Dollar 27,000 Canadian Dollar 23,064 23,064 36Jul. 2, 2014 Swedish Krona 62,000 New Zealand Dollar 10,592 9,893 1

36




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-For equities, all common shares unless otherwise noted.



1. The Fund (note 1)i) The Fund’s investment objective is to achieve long term returns through capital growth by investing in stocks of small and

medium capitalization corporations in Europe, Australia and the Far East.
















June 30, 2014






European Euro 8,186,158 23.2 818,616 2.3

British Pound 6,797,958 19.2 679,796 1.9

Japanese Yen 6,311,022 17.9 631,102 1.8

Swiss Franc 3,023,937 8.6 302,394 0.9


South Korean Won 1,431,238 4.1 143,124 0.4

Swedish Krona 938,821 2.7 93,882 0.3

US Dollar 895,804 2.5 89,580 0.3

Hong Kong Dollar 889,599 2.5 88,960 0.3

Singapore Dollar 587,707 1.7 58,771 0.2

Norwegian Krone 499,843 1.4 49,984 0.1

Danish Krone 400,105 1.1 40,011 0.1

New Zealand Dollar 240,503 0.7 24,050 0.1

Total 32,075,830 90.9 3,207,584 9.2

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December 31, 2013






European Euro 7,767,024 23.0 776,702 2.3British Pound 7,094,688 21.1 709,469 2.1Japanese Yen 6,133,356 18.2 613,336 1.8Swiss Franc 2,770,374 8.2 277,037 0.8South Korean Won 1,595,052 4.7 159,505 0.5Australian Dollar 1,559,825 4.6 155,983 0.5Swedish Krona 781,941 2.3 78,194 0.2Hong Kong Dollar 666,784 2.0 66,678 0.2US Dollar 624,167 1.9 62,417 0.2Danish Krone 545,625 1.6 54,563 0.2Norwegian Krone 486,464 1.4 48,646 0.1Singapore Dollar 416,375 1.2 41,638 0.1New Zealand Dollar 116,684 0.3 11,668 0.0

Total 30,558,359 90.5 3,055,836 9.1

January 1, 2013






European Euro 6,500,285 23.6 650,029 2.4British Pound 5,464,761 19.8 546,476 2.0Japanese Yen 4,630,858 16.8 463,086 1.7Australian Dollar 2,336,819 8.5 233,682 0.9Swiss Franc 2,227,476 8.1 222,748 0.8South Korean Won 1,210,480 4.4 121,048 0.4Danish Krone 525,681 1.9 52,568 0.2Norwegian Krone 485,054 1.8 48,505 0.2Singapore Dollar 421,139 1.5 42,114 0.2Swedish Krona 413,831 1.5 41,383 0.2Hong Kong Dollar 317,315 1.2 31,732 0.1US Dollar 246,366 0.9 24,637 0.1

Total 24,780,065 90.0 2,478,007 9.0



iii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $178,720 $ – $17,862 $ – $4,942Payable for currency spot contracts – 1 – – – –Redeemable units 35,338,902 – $33,698,620 – $27,531,137 –

$35,338,902 $178,721 $33,698,620 $17,862 $27,531,137 $4,942

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Summary of Investment Portfolio


Investment Category June 30, 2014 December 31, 2013 January, 1, 2013

Australia 4.9 4.3 8.1Austria 0.8 0.8 1.9Belgium 0.3 0.5 0.8Bermuda – – 0.4Cayman Island – – 0.4Canada 9.1 7.8 9.6Denmark 1.1 1.7 1.9Finland 0.9 1.7 1.9France 6.6 6.3 6.3Germany 6.9 7.0 6.8Hong Kong 2.5 2.0 1.2Israel – – 0.2Italy 3.3 3.6 3.3Japan 17.6 17.9 16.4Netherlands 1.6 1.6 1.6New Zealand 0.7 0.4 –Norway 1.4 1.4 1.4Singapore 1.6 1.2 1.5South Korea 4.0 5.0 4.8Spain 2.1 2.0 1.4Sweden 2.6 2.3 1.5Switzerland 8.6 8.2 7.0United Kingdom 19.8 21.4 20.5United States 2.5 1.5 0.4Currency Spot Contracts 0.0 0.0 –




Equities $3,961,542 $30,977,872 $ – $34,939,414

Currency Forward Contracts – Assets 37 – – 37

3,961,579 30,977,872 – 34,939,451

Currency Forward Contracts – Liabilities (1) – – (1)

$3,961,578 $30,977,872 $ – $34,939,450


Equities $3,269,480 $29,955,946 $ – $33,225,426


$3,269,628 $29,955,946 $ – $33,225,574


Equities $2,814,527 $24,533,699 $ – $27,348,226


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Scotia Private Emerging Markets Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013



spot contracts – – 1,235Cash 4,492,521 12,151,192 5,209,842Accrued investment income 947,022 174,586 102,511Receivable for securities sold – – 331,556Subscriptions receivable 420,745 188,235 18,812

152,217,089 217,741,099 133,347,168

LIABILITIESCurrent liabilitiesPayable for securities purchased – – 235,601Redemptions payable 17,404 38,835 7,146Accrued expenses 22,235 – –Unrealized loss on currency spot

contracts – – 917

39,639 38,835 243,664



Pinnacle Series Units $ 30,754,921 $ 26,472,471 $ 22,168,661Series I Units $108,891,098 $171,564,468 $ 95,036,876Series M Units $ 12,531,431 $ 19,665,325 $ 15,897,967

UNITS OUTSTANDINGPinnacle Series Units 3,241,336 2,922,260 2,481,754Series I Units 11,321,112 18,695,803 10,505,631Series M Units 1,326,490 2,173,362 1,779,549


Pinnacle Series Units $ 9.49 $ 9.06 $ 8.93Series I Units $ 9.62 $ 9.18 $ 9.05Series M Units $ 9.45 $ 9.05 $ 8.93


2014 2013


Dividends $ 2,574,866 $ 1,849,637Interest for distribution purposes 54,618 178,476Net realized gain (loss) on non-derivative financial

assets 4,588,423 (5,063,006)Net gain (loss) foreign exchange (617,701) (145,340)Change in unrealized appreciation (depreciation) of

non-derivative financial assets 652,746 (6,899,409)Change in unrealized appreciation (depreciation) of

currency spots – 205

Net gain (loss) on investments 7,252,952 (10,079,437)Securities lending 25,447 6,161


EXPENSESManagement fees (note 5) 55,481 54,877Harmonized Sales Tax/Goods and Services Tax 12,240 17,778Audit fees 1,834 1,880Independent Review Committee fees 269 450Custodian fees 63,149 97,095Filing fees 9,196 8,281Legal fees 1,511 1,464Unitholder reporting costs 6,260 7,964Unitholder administration and service fees 21,046 21,719Overdraft charges 1,514 –Foreign withholding taxes/tax reclaims 259,306 142,340Transaction costs 562,592 133,416

Total expenses 994,398 487,264Absorbed expenses – (20,471)

Net expenses 994,398 466,793

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 6,284,001 $(10,540,069)


Pinnacle Series Units $ 1,366,594 $ (1,520,408)Series I Units $ 4,253,033 $ (7,826,933)Series M Units $ 664,374 $ (1,192,728)


Pinnacle Series Units $ 0.44 $ (0.59)Series I Units $ 0.31 $ (0.64)Series M Units $ 0.38 $ (0.66)

WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 3,131,053 2,585,913Series I Units 13,505,985 12,279,825Series M Units 1,754,621 1,803,774


Portfolio Advisor: Lee Munder Capital Group


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Scotia Private Emerging Markets Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $ 26,472,471 $ 22,168,661Series I Units 171,564,468 95,036,876Series M Units 19,665,325 15,897,967

217,702,264 133,103,504


Pinnacle Series Units 1,366,594 (1,520,408)Series I Units 4,253,033 (7,826,933)Series M Units 664,374 (1,192,728)

6,284,001 (10,540,069)


Pinnacle Series Units 4,658,213 3,516,162Series I Units 33,329,088 40,893,538Series M Units 4,080,699 3,071,106

Payments on redemptionPinnacle Series Units (1,742,357) (1,668,303)Series I Units (100,255,491) (121,751)Series M Units (11,878,967) (5,018,234)

(71,808,815) 40,672,518


Pinnacle Series Units 4,282,450 327,451Series I Units (62,673,370) 32,944,854Series M Units (7,133,894) (3,139,856)

(65,524,814) 30,132,449


Pinnacle Series Units 30,754,921 22,496,112Series I Units 108,891,098 127,981,730Series M Units 12,531,431 12,758,111

$ 152,177,450 $163,235,953


2014 2013


of redeemable units $ 6,284,001 $(10,540,069)Adjustments For:



sale of non-derivative financial assets (652,746) 6,899,409Change in unrealized appreciation (depreciation) of

currency spot contracts – (205)Purchases of non-derivative financial assets (274,795,770) (66,656,523)Proceeds from sale of non-derivative financial assets 338,344,631 24,963,745Transaction costs 562,592 133,416Accrued investment income (772,436) (751,360)Accrued expenses 22,235 26,148



Net cash provided by (used in) financing activities (72,062,755) 40,386,287Net gain (loss) foreign exchange on cash (617,701) (145,340)Net increase (decrease) in cash (7,040,970) (330,806)Cash at beginning of period 12,151,192 5,209,842


Interest received(1) 59,167 175,365Dividends received, net of withholding taxes(1) 1,538,577 959,048




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AverageCost ($)

CarryingValue ($)

EQUITIES – 96.2%Foreign Equities – 96.2%United States – 9.2%Exchange-Traded Funds – 2.8%

20,124 iPath MSCI India Index ETN 1,199,384 1,478,58888,644 iShares MSCI India ETF 2,396,345 2,812,031

3,595,729 4,290,619

Index Units – 3.3%109,968 iShares MSCI Emerging Market Index 4,891,344 5,074,056

Energy – 0.4%13,793 Tatneft OAO 536,091 576,849

Consumer Staples – 1.4%158,629 Ambev SA 1,204,069 1,191,40117,658 Companhia Brasileira de Distribuicao Grupo Pao

de Acucar ADR 806,293 872,784

2,010,362 2,064,185

Information Technology – 0.7%87,461 Wipro Limited 1,229,886 1,109,428

Utilities – 0.6%51,788 Enersis SA 843,797 931,791

TOTAL UNITED STATES EQUITIES 13,107,209 14,046,928

Brazil – 7.2%118,300 Banco do Brasil SA 1,254,278 1,419,287137,700 Braskem S.A. 1,257,625 936,708136,400 Cyrela Brazil Realty SA 935,812 910,084171,400 Gerdau SA, Preference 1,358,836 1,070,790159,000 Hypermarcas SA 1,226,274 1,477,702334,900 JBS SA 1,334,841 1,228,81978,100 Porto Seguro SA 1,230,574 1,201,312

351,300 Suzano Papel E Celulose Sa 1,477,350 1,422,981107,062 Vale SA ADR, Preference 1,468,911 1,357,492

11,544,501 11,025,175

China – 4.3%2,230,000 Agricultural Bank of China Limited 1,118,131 1,050,0384,961,000 Bank of China Ltd., Class H 2,388,796 2,371,3361,064,000 China Railway Construction Corporation, Class H 1,064,366 999,7592,224,000 Chongqing Rural Commercial Bank Co., Ltd. 1,096,481 1,096,7951,461,392 Industrial and Commercial Bank of China Ltd.,

Class H 1,026,151 986,325

6,693,925 6,504,253

Hong Kong – 10.3%1,494,000 Angang Steel Company Limited, Class H 1,033,438 1,028,4831,747,000 China CITIC Bank Corporation Limited 1,205,595 1,130,4241,780,494 China Construction Bank Corporation, Class H 1,442,479 1,437,212

123,500 China Mobile Limited 1,343,324 1,279,1132,407,000 China Power International Development Limited 925,137 1,014,3011,528,000 China Resources Cement Holding Limited 1,110,044 1,023,263

708,000 Cosco Pacific Ltd. 1,028,639 1,047,7002,380,000 Evergrande Real Estate Group Limited 1,075,248 986,0658,541,000 GOME Electrical Appliances Holding Limited 1,677,856 1,493,0151,044,829 Huaneng Power International Inc., Class H 1,142,662 1,258,7627,775,000 REXLot Holdings Limited 1,177,577 973,826

449,500 Shimao Property Holdings Limited 1,113,104 881,396134,000 Tencent Holdings Limited 2,399,170 2,186,056

16,674,273 15,739,616

India – 3.4%33,555 ICICI Bank Limited ADR 1,355,391 1,786,32653,754 Reliance Industries Ltd. GDR 1,676,974 1,930,09735,803 Tata Motors Limited 976,191 1,491,951

4,008,556 5,208,374


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Foreign Equities (cont’d)Indonesia – 4.2%

1,962,100 INRdofood Sukses Makmur Tbk PT 1,201,824 1,182,7121,747,200 P.T. Bank Rakyat Indonesia (Persero) Tbk 1,333,596 1,622,757

10,779,500 PT Adaro Energy Tbk 1,070,205 1,139,3893,166,900 PT Bank Negara Indonesia (Persero) Tbk 1,098,062 1,357,8505,210,500 PT Perusahaan Perkebunan London Sumatra

Indonesia Tbk 1,129,508 1,085,130

5,833,195 6,387,838

Malaysia – 3.3%436,000 AMMB Holdings Berhad 1,062,365 1,031,436725,900 DiGi.Com Berhad 1,260,838 1,381,988546,500 IJM Corporation Berhad 1,053,566 1,218,103755,500 Malaysia Building Society Berhad 555,576 544,856

1,613,340 YTL Power International Berhad 961,366 788,141

4,893,711 4,964,524

Mexico – 3.4%2,228,600 America Movil SAB de CV 2,398,518 2,464,376

108,800 Gruma, S.A.B. de C.V. 994,426 1,389,475177,800 Grupo Aeroportuario del Pacifico SAB de CV 1,074,295 1,287,031

4,467,239 5,140,882

Philippines – 3.2%1,582,000 Alliance Global Group, Inc. 978,682 1,125,575

548,860 BDO Unibank, Inc. 1,199,468 1,255,031510,890 Metropolitan Bank & Trust Company 931,517 1,092,075351,410 Universal Robina Corporation 1,230,498 1,326,174

4,340,165 4,798,855

Poland – 0.8%92,042 Powszechna Kasa Oszczednosci Bank Polski SA 1,340,272 1,218,808

Russia – 2.9%216,847 Gazprom 2,133,408 2,016,15420,573 OAO LUKOIL, Sponsored ADR 1,383,143 1,312,946

100,099 Sberbank of Russia 1,281,722 1,086,059

4,798,273 4,415,159

South Africa – 10.3%51,915 African Rainbow Minerals Ltd. 1,003,551 972,460

105,125 Barloworld Limited 1,073,060 1,067,64674,219 Exxaro Resources Limited 1,108,957 1,031,37386,173 Liberty Holdings Ltd. 1,087,552 1,123,585

174,198 Mediclinic International Ltd. 1,317,696 1,427,25852,419 Mondi Ltd. 954,614 1,019,740

108,184 MTN Group Limited 2,080,947 2,428,403497,207 Netcare Ltd. 1,271,076 1,431,45120,138 Sasol Ltd. 1,063,369 1,277,243

247,833 Steinhoff International Holdings Limited 1,174,273 1,470,57041,817 Tiger Brands Ltd. 1,211,900 1,286,08984,855 Vodacom Group Limited 1,100,867 1,118,741

14,447,862 15,654,559

South Korea – 17.4%724 Amorepacific Corporation 750,949 1,163,165

4,593 E-Mart Co Ltd. 1,229,557 1,116,26518,877 Hankook Tire Co. Ltd. 1,225,839 1,201,78632,379 Hanwha Corppration 1,230,085 875,11040,532 Hynix Semiconductor Inc. 1,605,418 2,073,77710,915 Hyundai Hysco Co., Ltd. 850,927 775,86110,227 Hyundai Motor Company 2,056,638 2,473,79986,708 Industrial Bank of Korea 1,089,899 1,233,7911,754 KCC Corp. 878,930 1,141,664

38,290 LG Display Co., Ltd. 1,016,381 1,286,24916,284 LG Electronics Inc. 1,316,480 1,275,29614,473 LS Corp. 1,234,342 1,130,85451,894 Nexen Tire Corporation 864,452 845,114



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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Foreign Equities (cont’d)South Korea (cont’d)

4,486 Samsung Electronics Co., Ltd. 4,996,796 6,256,46429,799 Shinhan Financial Group Co., Ltd. 1,231,535 1,472,7584,937 SK Corportaion 916,452 950,0554,683 SK Telecom Co. Ltd. 1,087,406 1,168,900

23,582,086 26,440,908

Taiwan – 9.9%1,096,000 Advanced Semiconductor Engineering Inc. 1,115,011 1,520,1732,489,000 Au Optronics Corp. 855,026 1,124,138

183,000 Catcher Technology Co. Ltd. 1,360,634 1,820,285466,000 Cheng Uei Precision Industry Co., Ltd. 1,115,605 973,423701,000 Hon Hai Precision Industry Co., Ltd. 2,094,994 2,503,104687,000 Pou Chen Corporation 1,036,222 881,815561,000 Ruentex Development Co., Ltd. 1,098,017 1,083,675524,818 Taiwan Semiconductor Manufacturing

Company Ltd. 1,640,467 2,357,501737,000 Uni-President Enterprises Corp. 1,389,606 1,411,535

2,570,000 United Microelectronics Corporation 1,174,410 1,371,846

12,879,992 15,047,495

Thailand – 2.7%7,234,900 Hemaraj Land and Developement Public Co. 918,148 899,835

194,200 PTT Exploration and Production PublicCompany Limited 1,050,269 1,071,049

504,735 PTT Global Chemical PCL 1,204,223 1,120,3709,042,600 Quality Houses Public Company Limited 809,115 1,052,871

3,981,755 4,144,125

Turkey – 3.2%810,531 Eregli Demir ve Celik Fabrikalari TAS (Erdemir) 1,059,703 1,546,747

1,134,884 Kardemir Karabuk Demir Celik San. ve Tic 998,250 1,120,016283,898 Turk Hava Yollari Anonim Ortakligi 1,120,022 927,720184,157 Turkcell IletisimHizmetleri AS ADR 1,042,316 1,228,562

4,220,291 4,823,045

United Kingdom – 0.5%153,124 Commercial International Bank Egypt SAE 887,311 796,257



NET ASSETS – 100.0% 152,177,450



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long term returns through capital growth by investing primarily in equity and

equity-related securities of companies located in emerging markets and emerging industries of any market.
















June 30, 2014






South Korean Won 26,440,911 17.4 2,644,091 1.7

US Dollar 25,853,636 17.0 2,585,364 1.7

Hong Kong Dollar 22,260,847 14.6 2,226,085 1.5

South African Rand 15,654,557 10.3 1,565,456 1.0

Taiwan Dollar 15,419,033 10.1 1,541,903 1.0

Brazilian Real 9,667,683 6.4 966,768 0.6


Mexican Peso 5,140,882 3.4 514,088 0.3

Malaysian Ringgit 4,964,524 3.3 496,452 0.3

Turkish Lira 4,823,045 3.2 482,305 0.3

Philippines Peso 4,798,855 3.2 479,886 0.3

Thai Baht 4,144,125 2.7 414,413 0.3

Polish Zloty 1,218,814 0.8 121,881 0.1

Total 146,774,750 96.6 14,677,476 9.5

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December 31, 2013






US Dollar 72,147,870 33.1 7,214,787 3.3

South Korean Won 33,672,324 15.5 3,367,232 1.6

Hong Kong Dollar 24,530,114 11.3 2,453,011 1.1


Taiwan Dollar 17,925,644 8.2 1,792,564 0.8

Brazilian Real 9,001,374 4.1 900,137 0.4


Thai Baht 5,780,295 2.7 578,030 0.3

Turkish Lira 3,887,397 1.8 388,740 0.2


Mexican Peso 3,478,311 1.6 347,831 0.2

European Euro 3,051,888 1.4 305,189 0.1

Philippines Peso 196,484 0.1 19,648 0.0

Total 204,590,030 93.9 20,459,002 9.4

January 1, 2013






US Dollar 40,055,937 30.1 4,005,594 3.0

South Korean Won 22,496,561 16.9 2,249,656 1.7

Hong Kong Dollar 15,429,576 11.6 1,542,958 1.2


Taiwan Dollar 7,946,282 6.0 794,628 0.6

Brazilian Real 6,776,142 5.1 677,614 0.5

Mexican Peso 4,046,114 3.0 404,611 0.3

Thai Baht 3,830,941 2.9 383,094 0.3


Turkish Lira 3,669,993 2.8 366,999 0.3


European Euro 1,418,851 1.1 141,885 0.1

Israel Shekel 1,223,084 0.9 122,308 0.1

Polish Zloty 1,088,839 0.8 108,884 0.1

Czech Koruna 935,219 0.7 93,522 0.1

Total 126,600,033 95.2 12,660,003 9.6



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iii) Liquidity risk





Less than3 months


Unrealized loss on currency spot contracts – – – – – 917


$152,177,450 $39,639 $217,702,264 $38,835 $133,103,504 $243,664






Canada – 1.7 0.4


Brazil 7.2 10.7 11.0

Cayman Islands – – 0.6

China 4.3 4.1 4.4

Columbia – 0.9 0.7

Czech Republic – – 0.7

Hong Kong 10.3 8.6 7.6

India 3.4 5.4 2.7

Indonesia 4.2 3.1 2.8

Israel – – 0.9

Malaysia 3.3 1.7 1.2

Mexico 3.4 1.6 4.3

Netherlands – – 1.0

Philippines 3.2 0.1 –

Poland 0.8 – 0.8

Portugal – 1.4 1.2

Russia 2.9 5.3 7.9

South Africa 10.3 5.6 6.5

South Korea 17.4 16.0 17.3

Taiwan 9.9 8.3 6.0

Thailand 2.7 2.7 2.9

Turkey 3.2 1.8 2.8


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Equities $35,094,390 $111,262,411 $ – $146,356,801


Equities $78,184,452 $126,839,838 $ – $205,024,290

Warrants – 202,796 – 202,796

$78,184,452 $127,042,634 $ – $205,227,086


Equities $42,088,669 $ 85,594,543 $ – $127,683,212

Currency Spot Contracts – Assets 1,235 – – $ 1,235

42,089,904 85,594,543 – $127,684,447

Currency Spot Contracts – Liabilities (917) – – $ (917)

$42,088,987 $ 85,594,543 $ – $127,683,530


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Scotia Private Global Equity Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $369,326,638 $500,354,156 $330,200,331Unrealized gain on currency spot

contracts – 18,337 –Cash 10,334,248 17,293,021 10,504,412Accrued investment income 250,013 174,515 44,277Receivable for securities sold 2,688,582 1,880,677 –Subscriptions receivable 279,056 75,786 444,489

382,878,537 519,796,492 341,193,509

LIABILITIESCurrent liabilitiesPayable for securities purchased 4,267,539 1,094,680 3,451,650Redemptions payable 28,803 32,321 9,574Accrued expenses 19,722 – –Unrealized loss on currency spot

contracts 1,467 3,263 15,024

4,317,531 1,130,264 3,476,248








2014 2013


Dividends $ 3,936,665 $ 3,836,345Interest for distribution purposes 68,837 31,371Net realized gain (loss) on non-derivative financial assets 63,876,042 4,756,640Net gain (loss) foreign exchange 234,916 (63,904)Change in unrealized appreciation (depreciation) of non-

derivative financial assets (44,647,690) 29,268,448Change in unrealized appreciation (depreciation) of currency

spots (16,541) 15,174



EXPENSESManagement fees (note 5) 2,758 1,962Harmonized Sales Tax/Goods and Services Tax 8,952 9,942Audit fees 4,452 4,870Independent Review Committee fees 631 1,187Custodian fees 18,491 27,554Filing fees 8,598 8,281Legal fees 3,557 3,770Unitholder reporting costs 5,441 7,142Unitholder administration and service fees 65,602 75,935Overdraft charges 63 –Foreign withholding taxes/tax reclaims 584,908 617,645Transaction costs 96,216 41,894


Net expenses 798,455 798,647



Pinnacle Series Units $ 2,357,549 $ 3,468,507Series F Units $ 30,528 $ 35,898Series I Units $ 20,277,301 $33,548,819





Portfolio Advisor: Harding Loevner LP


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Scotia Private Global Equity Pool (Unaudited – Continued)


2014 2013



518,666,228 337,717,261



22,665,378 37,053,224




(162,770,600) 57,801,201


Pinnacle Series Units 2,037,148 1,795,414Series F Units 185,413 17,193Series I Units (142,327,783) 93,041,818

(140,105,222) 94,854,425



$ 378,561,006 $432,571,686


2014 2013




Net realized gain (loss) foreign exchange on cash (234,916) 63,904Change in unrealized appreciation (depreciation) on


currency spot contracts 16,541 (15,174)Purchases of non-derivative financial assets (78,703,497) (87,846,448)Proceeds from sale of non-derivative financial assets 231,228,104 21,673,942Transaction costs 96,216 41,894Accrued investment income (75,498) (252,032)Accrued expenses 19,722 18,671



Net cash provided by (used in) financing activities (162,977,387) 56,788,489Net gain (loss) foreign exchange on cash 234,916 (63,904)Net increase (decrease) in cash (7,193,689) (6,498,617)Cash at beginning of period 17,293,021 10,504,412






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AverageCost ($)

CarryingValue ($)

EQUITIES – 97.6%Australia – 0.8%

47,100 Cochlear Limited 3,008,307 2,925,180

France – 5.6%38,940 Air Liquide SA 4,477,507 5,608,53755,828 Dassault Systemes SA 5,056,979 7,655,17533,300 Essilor International SA 3,685,089 3,771,59922,800 L’Oreal SA 2,921,762 4,194,142

16,141,337 21,229,453

Hong Kong – 3.3%1,471,900 AIA Group Ltd. 6,146,998 7,902,065

548,000 Sands China Ltd. 4,193,434 4,416,260

10,340,432 12,318,325

India – 1.2%93,200 HDFC Bank Ltd-ADR 3,059,417 4,655,327

Indonesia – 0.9%3,357,900 PT Bank Central Asia Tbk 2,751,822 3,321,983

Japan – 9.1%104,300 ABC-Mart, Inc. 3,939,711 5,963,24832,500 FANUC Corp. 4,716,195 5,991,72797,672 Kakaku.com Inc. 1,602,166 1,829,72813,143 Keyence Corporation 3,512,429 6,133,190

283,700 M3, Inc. 2,089,118 4,813,79466,900 Monotaro Co., Ltd. 1,748,877 1,974,280

113,428 Stanley Electric Co., Ltd. 3,058,051 3,161,38874,100 Unicharm Corporation 3,505,326 4,716,809

24,171,873 34,584,164

Spain – 1.2%26,560 Industria de Diseno Textil SA 2,770,561 4,369,140

Sweden – 1.0%292,905 Elekta AB, Class B 4,781,863 3,970,591

Switzerland – 8.1%33,570 Lonza Group AG 2,231,216 3,898,859

128,600 Nestle SA 7,747,798 10,656,06919,200 Roche Holdings AG 6,126,791 6,111,96130,600 Sonova Holdings AG 3,219,354 4,982,7197,630 Swatch Group AG, Class B 3,320,263 4,916,230

22,645,422 30,565,838

Turkey – 1.1%1,021,430 Turkiye Garanti Bankasi ADR 4,868,638 4,304,360

United Kingdom – 5.6%64,151 Aggreko PLC 1,759,173 1,931,137

104,100 Shire PLC 3,702,657 8,707,662213,000 Standard Chartered PLC 5,168,734 4,643,501259,000 WPP Group PLC 3,429,402 6,016,322

14,059,966 21,298,622


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)United States – 59.7%

29,000 3M Co. 2,788,392 4,431,64793,100 Abbott Laboratories 2,966,478 4,060,84645,180 Allergan, Inc. 4,920,494 8,150,41750,300 American Express Company 3,253,646 5,090,156

114,900 ARM Holdings PLC, ADR 3,631,342 5,545,56184,100 BorgWarner, Inc. 3,218,912 5,848,97649,600 Bunge Limited 3,313,051 4,002,54375,200 Citrix Systems, Inc. 4,775,143 5,018,20082,500 Cognizant Technology Solutions Corporation 3,131,324 4,304,81595,900 Colgate-Palmolive Company 4,625,670 6,972,99298,625 DaVita, Inc. 6,780,494 7,609,363

168,000 eBay Inc. 6,227,580 8,972,28371,765 Emerson Electric Co. 3,765,204 5,078,76746,400 Exxon Mobil Corporation 3,840,531 4,981,11743,700 F5 Networks, Inc. 4,231,074 5,195,47790,600 First Republic Bank 3,146,552 5,315,14115,730 Google Inc. Class A 11,301,660 9,811,658

100,200 Informatica Corporation 3,819,079 3,810,92252,933 IPG Photonics Corporation 3,693,474 3,885,240

127,400 JPMorgan Chase & Co. 5,707,097 7,826,753102,900 Lazard Ltd. 3,288,041 5,660,19250,600 MasterCard, Inc., Class A 3,379,809 3,966,098

181,280 Microsoft Corporation 5,831,780 8,064,71150,000 Monsanto Company 4,114,615 6,652,869

119,000 NIKE, Inc., Class B 6,904,352 9,843,45618,100 Polo Ralph Lauren Corporation 2,850,038 3,102,24233,900 Praxair, Inc. 3,310,846 4,803,41040,100 Procter & Gamble Company, The 2,701,973 3,361,061

183,400 Qiagen N.V. 3,377,947 4,783,88858,680 Roper Industries, Inc. 8,029,954 9,140,618

104,100 Schlumberger Limited 7,756,293 13,099,40476,050 Sigma-Aldrich Corporation 5,217,520 8,233,46362,900 SVB Financial Group 4,734,545 7,825,760

127,000 Trimble Navigation Ltd. 3,486,811 5,006,34834,600 Waters Corporation 3,951,034 3,854,452

222,500 Wells Fargo & Company 7,395,455 12,472,809

165,468,210 225,783,655


Currency Spot Contracts – (0.0)% (1,467)OTHER ASSETS, LESS LIABILITIES – 2.4% 9,235,835

NET ASSETS – 100.0% 378,561,006

CURRENCY SPOT CONTRACTS


June 30, 2014 ($)


(Depreciation)

Jul. 2, 2014 Canadian Dollar 2,687,451 U.S. Dollar 2,520,115 2,688,582 (1,131)Jul. 2, 2014 Japanese Yen 34,964,170 Canadian Dollar 368,276 368,314 (104)Jul. 2, 2014 U.S. Dollar 291,292 Canadian Dollar 310,809 310,809 (44)Jul. 3, 2014 Japanese Yen 15,905,159 Canadian Dollar 167,670 167,687 (189)

(1,467)




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capitalization stocks of companies in North America, Europe, Australia and the Far East. The Fund may invest up to 10% of itsassets in securities of issuers in emerging markets and up to 15% of its assets in cash and cash equivalents.
















June 30, 2014






US Dollar 246,762,930 65.2 24,676,293 6.5

Japanese Yen 35,718,424 9.4 3,571,842 0.9

European Euro 25,817,203 6.8 2,581,720 0.7

British Pound 21,413,255 5.7 2,141,326 0.6

Swiss Franc 20,002,909 5.3 2,000,291 0.5

Hong Kong Dollar 12,379,837 3.3 1,237,984 0.3

Swedish Krona 3,970,591 1.0 397,059 0.1



Total 372,312,312 98.4 37,231,231 9.8

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December 31, 2013






US Dollar 343,792,596 66.3 34,379,260 6.6

Japanese Yen 38,398,299 7.4 3,839,830 0.7

European Euro 35,314,671 6.8 3,531,467 0.7

British Pound 30,069,825 5.8 3,006,983 0.6

Swiss Franc 26,258,079 5.1 2,625,808 0.5

Hong Kong Dollar 11,890,129 2.3 1,189,013 0.2

South African Rand 5,242,408 1.0 524,241 0.1



Swedish Krona 1,170,554 0.2 117,055 0.0

Total 499,425,878 96.3 49,942,588 9.6

January 1, 2013






US Dollar 214,874,814 63.6 21,487,481 6.4

Japanese Yen 33,438,930 9.9 3,343,893 1.0

European Euro 21,780,490 6.4 2,178,049 0.6

British Pound 18,301,230 5.4 1,830,123 0.5

Swiss Franc 16,323,084 4.8 1,632,308 0.5

Hong Kong Dollar 11,464,357 3.4 1,146,436 0.3


South African Rand 4,539,906 1.3 453,991 0.1

Swedish Krona 3,975,430 1.2 397,543 0.1


Total 333,411,104 98.6 33,341,110 9.9



iii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $4,316,064 $ – $1,127,001 $ – $3,461,224

Unrealized loss on currency spot contracts – 1,467 – 3,263 – 15,024


$378,561,006 $4,317,531 $518,666,228 $1,130,264 $337,717,261 $3,476,248

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Australia 0.8 0.8 1.7

France 5.6 5.0 4.4

Hong Kong 3.3 2.3 3.4

India 1.2 1.5 2.2

Indonesia 0.9 0.7 0.9

Japan 9.1 7.8 9.8

Mexico – 1.8 2.2

Netherlands – 0.4 1.2

Russia – 0.5 0.7

South Africa – 1.0 1.2

Spain 1.2 1.3 1.5

Sweden 1.0 0.2 1.2


Turkey 1.1 0.7 1.3



Currency Spot Contracts (0.0) 0.0 –




Equities $245,399,411 $123,927,227 $ – $369,326,638


$245,397,944 $123,927,227 $ – $369,325,171


Equities $343,379,167 $156,974,989 $ – $500,354,156

Currency Spot Contracts – Assets 18,337 – – 18,337

343,397,504 156,974,989 – 500,372,493


$343,394,241 $156,974,989 $ – $500,369,230


Equities $210,538,815 $119,661,516 $ – $330,200,331


$210,523,791 $119,661,516 $ – $330,185,307


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Scotia Private Global Real Estate Pool (Unaudited)


June 30,2014

December 31,2013

January 1,2013



spot contracts – 857 1,696Cash 6,107,027 9,461,775 3,952,943Accrued investment income 808,407 1,149,915 724,217Receivable for securities sold 58,792 93,365 1,195,241Subscriptions receivable 689,249 174,099 109,397

232,660,860 319,009,704 223,936,115

LIABILITIESCurrent liabilitiesPayable for securities purchased – 4,572,929 660,454Redemptions payable 76,112 89,510 31,182Accrued expenses 19,059 – –Unrealized loss on currency

spot contracts – 6,794 5,629

95,171 4,669,233 697,265


NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLEUNITS PER SERIES

Pinnacle Series Units $126,997,605 $112,443,887 $101,993,993Series F Units $ 1,560,601 $ 438,545 $ 188,962Series I Units $104,007,483 $201,458,039 $121,055,895





2014 2013


Dividends $ 6,386,897 $ 4,034,590Interest for distribution purposes 57,415 –Capital gains distributions received 44,560 20,189Net realized gain (loss) on non-derivative financial assets 23,621,417 7,845,808Net gain (loss) foreign exchange (51,488) (39,954)Change in unrealized appreciation (depreciation) of non-

derivative financial assets (193,964) 4,183,479Change in unrealized appreciation (depreciation) of

currency spots 5,937 3,213



EXPENSESManagement fees (note 5) 3,675 1,339Harmonized Sales Tax/Goods and Services Tax 8,026 10,685Audit fees 2,745 3,041Independent Review Committee fees 394 735Custodian fees 25,643 44,839Filing fees 8,601 8,281Legal fees 2,222 2,364Unitholder reporting costs 4,978 6,872Unitholder administration and service fees 46,269 52,955Overdraft charges 12 58Foreign withholding taxes/tax reclaims 622,402 446,435Transaction costs 138,664 151,842


Net expenses 862,344 727,707



Pinnacle Series Units $13,115,746 $ 7,032,993Series F Units $ 63,094 $ 7,351Series I Units $15,844,513 $ 8,295,971





Portfolio Advisor: CBRE Clarion Securities


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Scotia Private Global Real Estate Pool (Unaudited – Continued)


2014 2013


Pinnacle Series Units $ 112,443,887 $101,993,993Series F Units 438,545 188,962Series I Units 201,458,039 121,055,895

314,340,471 223,238,850



29,023,353 15,336,315




(110,798,135) 19,425,797


Pinnacle Series Units 14,553,718 (3,515,916)Series F Units 1,122,056 139,189Series I Units (97,450,556) 38,138,839

(81,774,782) 34,762,112



$ 232,565,689 $258,000,962


2014 2013





sale of non-derivative financial assets 193,964 (4,183,479)Change in unrealized appreciation (depreciation) of

currency spot contracts (5,937) (3,213)Purchases of non-derivative financial assets (53,113,402) (73,515,940)Proceeds from sale of non-derivative financial assets 154,996,142 54,146,866Transaction costs 138,664 151,842Accrued investment income 341,508 (44,263)Accrued expenses 19,059 19,574



Net cash provided by (used in) financing activities (111,326,682) 19,365,253Net gain (loss) foreign exchange on cash (51,488) (39,954)Net increase (decrease) in cash (3,303,260) 3,467,101Cash at beginning of period 9,461,775 3,952,943


Interest received(1) 61,124 –Dividends received, net of withholding taxes(1) 6,102,295 3,543,893




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AverageCost ($)

CarryingValue ($)

EQUITIES – 96.7%Australia – 6.2%

630,300 Federation Centres NPV on Stapled Security 1,361,106 1,578,471563,830 Goodman Group 2,301,780 2,865,934337,268 Investa Office Fund 977,054 1,154,008

1,652,903 Mirvac Group 2,535,496 2,969,303505,042 Scentre Group 1,632,863 1,625,726611,179 Stockland 2,306,393 2,386,333254,403 Westfield Corporation 2,694,853 1,830,853

13,809,545 14,410,628

Canada – 1.6%18,400 Boardwalk Real Estate Investment Trust 988,851 1,200,78417,030 Canadian Real Estate Investment Trust 631,057 783,21067,400 RioCan Real Estate Investment Trust 1,764,849 1,840,694

3,384,757 3,824,688

France – 3.1%8,435 Fonciere des Regions 695,510 975,2207,450 Gecina SA 992,003 1,159,1138,419 ICADE 752,847 962,457

60,879 Klepierre 2,459,746 3,309,71828,530 Mercialys 638,771 709,341

5,538,877 7,115,849

Germany – 0.9%30,120 LEG Immobilien AG 1,790,326 2,164,623

Hong Kong – 5.9%359,800 Hongkong Land Holdings Limited 2,432,995 2,560,609282,200 Link Real Estate Investment Trust, The 1,269,225 1,619,912463,000 New World Development Company Limited 588,011 562,789265,350 Sino Land Company Limited 406,535 466,615340,100 Sun Hung Kai Properties Limited 4,841,171 4,977,67418,841 Sun Hung Kai Properties Limited

Warrants Apr. 22, 2016 – 26,246577,900 Swire Properties Limited 1,783,495 1,801,992207,326 Wharf Holdings Limited, The 1,430,961 1,593,494

12,752,393 13,609,331

Japan – 14.4%99 Activia Properties Inc. 756,576 928,972

580 GLP J-REIT 624,378 693,02048,340 Hulic Company Limited 620,301 681,946

448 Japan Real Estate Investment Corporation 2,180,549 2,785,1371,328 Japan Retail Fund Investment Corporation 2,570,229 3,187,496

208 Kenedix Realty Investment Corporation 759,673 1,207,446223,223 Mitsubishi Estate Company Ltd. 4,847,257 5,891,963242,600 Mitsui Fudosan Co., Ltd. 5,431,611 8,752,363

575 Nippon Prologis REIT Inc. 1,084,582 1,431,208472 Orix JREIT Inc. 628,431 706,294

101,500 Sumitomo Realty & Development Co., Ltd. 3,674,801 4,659,297107,000 Tokyo Tatemono Co. Ltd. 662,112 1,058,251

940 United Urban Investment Corporation 1,235,249 1,619,145

25,075,749 33,602,538

Luxembourg – 0.8%91,938 GAGFAH SA 1,622,865 1,785,680

Netherlands – 4.0%12,340 Corio NV 567,343 672,45417,622 Eurocommercial Properties NV 685,315 926,934

197,340 Nieuwe Steen Investments NV 1,120,342 1,325,99220,756 Unibail-Rodamco SE 4,576,765 6,434,906

6,949,765 9,360,286

Singapore – 2.7%1,264,700 Capitacommercial Trust 1,219,359 1,839,879

124,000 Capitaland Limited 347,840 339,504


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Singapore (cont’d)

1,202,200 Global Logistic Properties Limited 2,447,346 2,777,259865,800 Suntec Real Estate Investment Trust 1,246,411 1,340,563

5,260,956 6,297,205

Sweden – 1.0%71,006 Castellum AB 999,989 1,341,92314,500 Fabege AB 206,512 218,66555,923 Hufvudstaden AB, Class A 745,144 836,370

1,951,645 2,396,958

Switzerland – 0.6%13,217 PSP Swiss Property AG 1,200,768 1,327,032

United Kingdom – 6.9%226,654 British Land Company PLC 2,298,395 2,904,44450,200 Derwent London PLC 1,401,729 2,452,241

195,165 Great Portland Estates PLC 1,329,030 2,302,835210,431 Hammerson PLC 1,525,193 2,226,194276,695 Land Securities Group PLC 3,875,357 5,227,722106,900 Safestore Holdings PLC 194,688 425,86861,147 Unite Group PLC 468,762 439,464

11,093,154 15,978,768

United States – 48.6%17,800 American Homes 4 Rent Cl A 300,106 337,261

214,100 American Realty Capital Properties Inc. 2,930,967 2,862,00630,878 AvalonBay Communities, Inc. 4,169,445 4,683,22277,100 BioMed Realty Trust Inc. 1,640,476 1,795,60626,670 Boston Properties, Inc. 2,544,076 3,361,84774,000 Brandywine Realty Trust 1,091,379 1,232,75441,500 Brixmor Property Group Inc. 879,333 1,017,200

160,500 DCT Industrial Trust Inc. 1,363,454 1,405,792150,100 Developers Diversified Realty Corporation 2,084,795 2,823,16273,900 Douglas Emmett, Inc. 1,713,574 2,224,868

130,500 Duke Realty Corporation 2,041,138 2,528,30497,055 Equity Residential Real Estate Investment Trust 5,328,489 6,523,20920,695 Essex Property Trust, Inc. 3,490,243 4,081,3099,300 Extended Stay America, Inc. 219,270 229,7865,174 Federal Realty Investment Trust 490,368 667,243

175,200 General Growth Properties, Inc. 3,253,146 4,403,64424,425 HCP, Inc. Real Estate Investment Trust 975,044 1,077,88085,088 Health Care Real Estate Investment Trust, Inc. 4,957,756 5,688,93458,100 Healthcare Realty Trust Inc. 1,429,214 1,575,63168,200 Healthcare Trust of America Inc. 795,082 876,01923,100 Highwoods Properties, Inc. 763,352 1,033,82475,000 Hilton Worldwide Holdings Inc. 1,711,238 1,864,318

265,497 Host Hotels & Resorts Inc. 4,271,425 6,234,22450,500 Kilroy Realty Corporation 2,377,448 3,355,38992,654 Kimco Realty Corporation 1,776,710 2,271,523

111,200 Lexington Realty Trust 1,260,869 1,306,15654,200 Liberty Property Trust 1,873,798 2,194,10140,763 Macerich Company, The 2,120,809 2,902,16923,700 Pebblebrook Hotel Trust 556,863 934,50833,300 Post Properties, Inc. 1,555,179 1,899,223

120,376 ProLogis 4,152,237 5,276,90014,384 Public Storage Real Estate Investment Trust 1,716,106 2,628,84736,600 Ramco-Gershenson Properties Trust 595,633 648,9569,600 Realty Income Corporation 435,212 455,092

47,700 Senior Housing Properties Trust 1,249,170 1,236,08649,945 Simon Property Group, Inc. 6,160,304 8,860,02440,010 SL Green Realty Corp. 2,779,061 4,668,417

198,500 Spirit Realy Capital, Inc. 2,339,199 2,405,70176,200 Strategic Hotels & Resorts Inc. 675,563 951,95172,600 Sunstone Hotel Investors, Inc. 880,048 1,156,37717,387 Tanger Factory Outlet Centers, Inc. 504,852 648,669



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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)United States (cont’d)

19,500 Taubman Centers Inc 1,321,012 1,576,597126,400 UDR Inc 3,283,005 3,860,74642,680 Vornado Realty Trust Real Estate Investment

Trust 3,643,741 4,859,06524,972 Washington Prime Group Inc. 560,676 499,259

90,260,865 113,123,799



NET ASSETS – 100.0% 232,565,689



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term returns through income and capital growth, by investing primarily in

U.S., Canadian and non-North American real estate stocks and real estate investment trusts (REITs). The Fund’s investmentsmay consist of up to 40% Canadian securities, up to 100% REITs, up to 100% foreign content, and up to 15% cash and cashequivalents.
















June 30, 2014






US Dollar 115,749,050 49.8 11,574,905 5.0

Japanese Yen 33,954,831 14.6 3,395,483 1.5

European Euro 20,502,555 8.8 2,050,256 0.9

British Pound 15,978,769 6.9 1,597,877 0.7

Australian Dollar 14,410,628 6.2 1,441,063 0.6

Hong Kong Dollar 11,048,722 4.8 1,104,872 0.5

Singapore Dollar 6,297,204 2.7 629,720 0.3

Swedish Krona 2,396,958 1.0 239,696 0.1

Swiss Franc 1,327,032 0.6 132,703 0.1

Total 221,665,749 95.4 22,166,575 9.7FOR

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December 31, 2013






US Dollar 151,855,056 48.3 15,185,506 4.8

Japanese Yen 54,838,987 17.4 5,483,899 1.7

European Euro 25,525,583 8.1 2,552,558 0.8

Hong Kong Dollar 21,341,382 6.8 2,134,138 0.7


British Pound 19,352,930 6.2 1,935,293 0.6

Singapore Dollar 9,428,689 3.0 942,869 0.3

Swedish Krona 2,331,052 0.7 233,105 0.1

Swiss Franc 1,706,176 0.5 170,618 0.1

Total 305,873,430 97.2 30,587,343 9.7

January 1, 2013






US Dollar 99,424,447 44.5 9,942,445 4.5

Japanese Yen 27,270,884 12.2 2,727,088 1.2

Hong Kong Dollar 23,991,643 10.7 2,399,164 1.1


British Pound 12,828,543 5.7 1,282,854 0.6

European Euro 12,401,013 5.6 1,240,101 0.6

Singapore Dollar 10,045,710 4.5 1,004,571 0.5

Swedish Krona 1,845,589 0.8 184,559 0.1

Swiss Franc 1,452,965 0.7 145,297 0.1

Brazilian Real 389,612 0.2 38,961 0.0

Total 211,147,140 94.5 21,114,714 9.5



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iii) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $95,171 $ – $4,662,439 $ – $691,636

Unrealized loss on currency spot contracts – – – 6,794 – 5,629


$232,565,689 $95,171 $314,340,471 $4,669,233 $223,238,850 $697,265






Australia 6.2 6.1 9.7

Brazil – – 0.2

Canada 1.6 1.9 2.8

France 3.1 2.7 4.5

Germany 0.9 0.7 0.8

Hong Kong 5.9 7.6 12.1

Japan 14.4 17.5 12.0

Luxembourg 0.8 – –

Netherlands 4.0 4.8 0.3

Singapore 2.7 2.9 4.5

Sweden 1.0 0.7 0.8







Equities $116,948,487 $108,022,652 $ – $224,971,139

Warrants – 26,246 – 26,246

$116,948,487 $108,048,898 $ – $224,997,385


Equities $152,086,715 $156,042,978 $ – $308,129,693


152,087,572 156,042,978 – 308,130,550


$152,080,778 $156,042,978 $ – $308,123,756

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Equities $103,419,897 $114,532,724 $ – $217,952,621

Currency Spot Contracts – Assets 1,696 – – 1,696

103,421,593 114,532,724 – 217,954,317


$103,415,964 $114,532,724 $ – $217,948,688


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Pinnacle Income Portfolio (Unaudited)(formerly, Pinnacle Balanced Income Portfolio)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $13,040,802 $13,272,894 $14,396,439Cash 75,796 250,269 –Accrued investment income 29 57 140Receivable for securities sold – 9,000 240,996Subscriptions receivable 20,000 527 404

13,136,627 13,532,747 14,637,979

LIABILITIESCurrent liabilitiesBank indebtedness – – 65,051Redemptions payable – 938 –Accrued expenses 25,176 – –

25,176 938 65,051



Series A Units $13,111,451 $13,531,809 $14,572,928

UNITS OUTSTANDINGSeries A Units 1,098,050 1,186,415 1,313,218


Series A Units $ 11.94 $ 11.41 $ 11.10


2014 2013


Income from underlying funds $ 171,341 $ 204,245Net realized gain (loss) on non-derivative financial assets 167,567 118,742Change in unrealized appreciation (depreciation) of non-

derivative financial assets 429,169 (59,773)

Net gain (loss) on investments 768,077 263,214

Total income (loss) 768,077 263,214

EXPENSESManagement fees (note 5) 123,527 133,561Harmonized Sales Tax/Goods and Services Tax 13,018 14,299Audit fees 71 217Independent Review Committee fees 21 45Custodian fees 327 300Filing fees 7,574 7,170Legal fees 120 335Unitholder reporting costs 2,784 3,918Unitholder administration and service fees 2,666 3,052Overdraft charges 198 44


Net expenses 150,306 162,941

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 617,771 $ 100,273


Series A Units $ 617,771 $ 100,273


Series A Units $ 0.54 $ 0.08

WEIGHTED AVERAGE NUMBER OF UNITSSeries A Units 1,147,348 1,304,025



2014 2013


Series A Units $13,531,809 $14,572,928


Series A Units 617,771 100,273


Series A Units 681,194 863,345Payments on redemption

Series A Units (1,719,323) (1,186,372)

(1,038,129) (323,027)


Series A Units (420,358) (222,754)


Series A Units $13,111,451 $14,350,174


2014 2013




Change in unrealized appreciation (depreciation) on saleof non-derivative financial assets (429,169) 59,773

Purchases of non-derivative financial assets (174,396) (586,579)Proceeds from sale of non-derivative financial assets 1,012,224 992,001Accrued investment income 28 69Accrued expenses 25,176 24,799

Net cash provided by (used in) operating activities 884,067 471,594

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 661,721 860,749Amounts paid on redemption of redeemable units (1,720,261) (1,159,081)

Net cash provided by (used in) financing activities (1,058,540) (298,332)Net increase (decrease) in cash (174,473) 173,262Cash at beginning of period 250,269 (65,051)


Interest received(1) 167,898 69Dividends received, net of withholding taxes(1) 3,471 –




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Pinnacle Income Portfolio (Unaudited – Continued)(formerly, Pinnacle Balanced Income Portfolio)

SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2014Number ofUnits Issuer

AverageCost ($)

CarryingValue ($)

FIXED INCOME FUNDS – 69.6%207,890 Scotia Private American Core-Plus Bond Pool

Series I 1,743,371 1,968,863131,356 Scotia Private High Yield Income Pool Series I 1,162,535 1,273,273547,071 Scotia Private Income Pool Series I 6,026,901 5,886,208

8,932,807 9,128,344

CANADIAN EQUITY FUNDS – 11.1%68,263 Scotia Private Canadian Growth Pool Series I 806,770 1,061,88216,761 Scotia Private Canadian Value Pool Series I 293,295 393,915

1,100,065 1,455,797

FOREIGN EQUITY FUNDS – 18.8%13,398 Scotia Private Emerging Markets Pool Series I 130,337 128,85920,666 Scotia Private Global Equity Pool Series I 249,328 383,11562,431 Scotia Private Global Real Estate Pool Series I 656,903 1,042,12517,014 Scotia Private International Small to Mid Cap

Value Pool Series I 247,465 390,50431,490 Scotia Private U.S. Value Pool Series I 285,535 512,058

1,569,568 2,456,661



NET ASSETS – 100.0% 13,111,451



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1. The Fund (note 1)i) The Fund’s investment objective is to generate current income and long-term capital growth, with a bias towards income. The

Fund is an asset allocation fund that allocates your investment between four asset classes: bonds, Canadian equities, foreignequities and equities of real estate companies. The majority of the Fund will be invested in bonds with the balance invested inequities which will include Canadian and foreign equities and may include equities of real estate companies and real estateinvestment trusts.



As at June 30, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve andall other variables held constant, Net Assets would have decreased or increased, respectively, by $118,323 or approximately 0.9% oftotal Net assets attributable to holders of redeemable units (December 31, 2013 – $112,534 or approximately 0.8% Net assetsattributable to holders of redeemable units, January 1, 2013 – $170,594 or approximately 1.2%of total Net assets attributable toholders of redeemable units). In practice, actual results may differ from this sensitivity analysis and the difference could be material.

ii) Currency risk

The Fund could be exposed to indirect currency risk to the extent that the underlying funds held financial instruments that weredenominated in a currency other than its functional currency.


Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting amarket or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2014,approximately 29.9% (December 31, 2013 – 29.9%, January 1, 2013 – 30.5%) of the Fund’s net assets attributable to holders ofredeemable units were exposed to other price risk. If prices of these investments had decreased or increased by 10%, with all othervariables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased,respectively, by approximately $391,246 (December 31, 2013 – $403,863, January 1, 2013 – $444,467). In practice, actual results willdiffer from this sensitivity analysis and the difference could be material.

iv) Credit risk

The Fund could be exposed to indirect credit risk to the extent that the underlying funds invested in debt instruments andderivatives.

v) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $25,176 $ – $938 $ – $65,051


$13,111,451 $25,176 $13,531,809 $938 $14,572,928 $65,051


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Fixed Income Funds 69.6 68.2 68.3

Canadian Equity Funds 11.1 11.0 11.1

Foreign Equity Funds 18.8 18.9 19.4

vii) Fair value classification (note 2)



Mutual Funds $13,040,802 $ – $ – $13,040,802


Mutual Funds $13,272,894 $ – $ – $13,272,894


Mutual Funds $14,396,439 $ – $ – $14,396,439


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Pinnacle Balanced Portfolio (Unaudited)(formerly, Pinnacle Conservative Balanced Growth Portfolio)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $82,039,840 $76,380,393 $61,565,200Cash 454,763 385,621 404,935Accrued investment income 166 268 283Receivable for securities sold – 45,600 –Subscriptions receivable 38,035 12,157 11,270

82,532,804 76,824,039 61,981,688

LIABILITIESCurrent liabilitiesPayable for securities purchased – 86,000 –Redemptions payable 17,327 2,018 117,908Accrued expenses 164,627 – –

181,954 88,018 117,908



Series A Units $82,350,850 $76,736,021 $61,863,780

UNITS OUTSTANDINGSeries A Units 6,287,393 6,226,172 5,597,961


Series A Units $ 13.10 $ 12.32 $ 11.05


2014 2013

INCOMENet gain(loss on investments (note2)



Net gain (loss) on investments 5,809,209 2,587,920Other income 112 –


EXPENSESManagement fees (note 5) 837,178 652,242Harmonized Sales Tax/Goods and Services Tax 79,127 66,938Audit fees 746 818Independent Review Committee fees 128 193Custodian fees 309 607Filing fees 5,792 7,170Legal fees 699 1,640Unitholder reporting costs 3,345 4,738Unitholder administration and service fees 14,045 14,777Overdraft charges 11 110


Net expenses 941,380 749,233



Series A Units $4,867,941 $1,838,687



WEIGHTED AVERAGE NUMBER OF UNITSSeries A Units 6,304,225 5,557,937



2014 2013


Series A Units $76,736,021 $61,863,780


Series A Units 4,867,941 1,838,687


Series A Units 6,866,166 4,580,512

Payments on redemptionSeries A Units (6,119,278) (6,613,837)

746,888 (2,033,325)


Series A Units 5,614,829 (194,638)


Series A Units $82,350,850 $61,669,142


2014 2013




Change in unrealized appreciation (depreciation) on saleof non-derivative financial assets (4,408,386) (1,508,337)

Purchases of non-derivative financial assets (3,486,168) (1,720,137)Proceeds from sale of non-derivative financial assets 2,953,372 3,639,399Accrued investment income 102 218Accrued expenses 164,627 113,505

Net cash provided by (used in) operating activities (667,177) 1,850,088


Net cash provided by (used in) financing activities 736,319 (2,101,227)Net increase (decrease) in cash 69,142 (251,139)Cash at beginning of period 385,621 404,935






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Pinnacle Balanced Portfolio (Unaudited – Continued)(formerly, Pinnacle Conservative Balanced Growth Portfolio)


AverageCost ($)

CarryingValue ($)

FIXED INCOME FUNDS – 39.4%832,947 Scotia Private High Yield Income Pool Series I 7,753,255 8,074,003

2,260,893 Scotia Private Income Pool Series I 24,897,075 24,326,082

32,650,330 32,400,085

CANADIAN EQUITY FUNDS – 30.6%569,597 Scotia Private Canadian Growth Pool Series I 7,124,693 8,860,477194,539 Scotia Private Canadian Mid Cap Pool Series I 2,516,201 4,817,72472,245 Scotia Private Canadian Small Cap Pool Series I 1,545,560 2,731,573

375,447 Scotia Private Canadian Value Pool Series I 6,830,869 8,823,791

18,017,323 25,233,565

FOREIGN EQUITY FUNDS – 29.6%169,852 Scotia Private Emerging Markets Pool Series I 1,660,753 1,633,617130,570 Scotia Private Global Equity Pool Series I 1,686,542 2,420,556492,224 Scotia Private Global Real Estate Pool Series I 6,540,201 8,216,401305,001 Scotia Private International Equity Pool Series I 3,313,606 3,622,98871,393 Scotia Private International Small to Mid Cap

Value Pool Series I 1,116,952 1,638,561288,425 Scotia Private U.S. Large Cap Growth Pool Series I 2,063,871 3,448,203210,682 Scotia Private U.S. Value Pool Series I 2,272,621 3,425,864

18,654,546 24,406,190



NET ASSETS – 100.0% 82,350,850



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve a balance of long-term capital growth and current income. The Fund is an asset

allocation fund that allocates your investment between four asset classes: bonds, equities of real estate companies, Canadianequities and foreign equities. The majority of the Fund will be invested in equities which will include Canadian and foreignequities and equities of real estate companies and real estate investment trusts. The equities allocation will have a slight focuson Canadian equities. In addition, a significant allocation of the Fund will be invested in bonds.




ii) Currency risk




iv) Credit risk


v) Liquidity risk





Less than3 months



$82,350,850 $181,954 $76,736,021 $88,018 $61,863,780 $117,908


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Mutual Funds $82,039,840 $ – $ – $82,039,840


Mutual Funds $76,380,393 $ – $ – $76,380,393


Mutual Funds $61,565,200 $ – $ – $61,565,200


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Pinnacle Growth Portfolio (Unaudited)(formerly, Pinnacle Conservative Growth Portfolio)


June 30,2014

December 31,2013

January 1,2013


Non-derivative financial assets $12,667,562 $11,890,494 $7,587,965Cash 103,437 225,255 77,844Accrued investment income 83 76 66Receivable for securities sold – 10,400 23,999Subscriptions receivable 115 9,131 175

12,771,197 12,135,356 7,690,049

LIABILITIESCurrent liabilitiesPayable for securities purchased – 7,000 –Accrued expenses 31,601 – –

31,601 7,000 –



Series A Units $12,739,596 $12,128,356 $7,690,049

UNITS OUTSTANDINGSeries A Units 922,494 945,071 695,476


Series A Units $ 13.81 $ 12.83 $ 11.06


2014 2013



derivative financial assets 956,251 253,255

Net gain (loss) on investments 1,085,452 385,636

Total income (loss) 1,085,452 385,636

EXPENSESManagement fees (note 5) 147,323 90,725Harmonized Sales Tax/Goods and Services Tax 15,001 10,373Audit fees 141 131Independent Review Committee fees 20 24Custodian fees 353 579Filing fees 9,038 7,170Legal fees 100 230Unitholder reporting costs 2,590 3,909Unitholder administration and service fees 2,920 3,134Overdraft charges 22 51


Net expenses 177,508 116,326

Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 907,944 $269,310


Series A Units $ 907,944 $269,310



WEIGHTED AVERAGE NUMBER OF UNITSSeries A Units 929,071 673,517



2014 2013


Series A Units $12,128,356 $7,690,049


Series A Units 907,944 269,310


Series A Units 788,890 329,235Payments on redemption

Series A Units (1,085,594) (969,710)

(296,704) (640,475)


Series A Units 611,240 (371,165)


Series A Units $12,739,596 $7,318,884


2014 2013




Change in unrealized appreciation (depreciation) on sale ofnon-derivative financial assets (956,251) (253,255)

Purchases of non-derivative financial assets (116,222) (124,112)Proceeds from sale of non-derivative financial assets 377,452 785,475Accrued investment income (7) 51Accrued expenses 31,601 17,115

Net cash provided by (used in) operating activities 165,870 597,564

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 797,906 329,310Amounts paid on redemption of redeemable units (1,085,594) (967,460)

Net cash provided by (used in) financing activities (287,688) (638,150)Net increase (decrease) in cash (121,818) (40,586)Cash at beginning of period 225,255 77,844






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Pinnacle Growth Portfolio (Unaudited – Continued)(formerly, Pinnacle Conservative Growth Portfolio)


AverageCost ($)

CarryingValue ($)

FIXED INCOME FUNDS – 19.1%75,697 Scotia Private High Yield Income Pool Series I 693,147 733,754

157,574 Scotia Private Income Pool Series I 1,742,311 1,695,421

2,435,458 2,429,175

CANADIAN EQUITY FUNDS – 50.3%149,213 Scotia Private Canadian Growth Pool Series I 1,948,799 2,321,11745,558 Scotia Private Canadian Mid Cap Pool Series I 665,202 1,128,24317,855 Scotia Private Canadian Small Cap Pool Series I 429,241 675,08897,209 Scotia Private Canadian Value Pool Series I 1,829,428 2,284,626

4,872,670 6,409,074

FOREIGN EQUITY FUNDS – 30.1%26,322 Scotia Private Emerging Markets Pool Series I 248,999 253,16420,326 Scotia Private Global Equity Pool Series I 290,404 376,82675,717 Scotia Private Global Real Estate Pool Series I 1,042,137 1,263,89944,960 Scotia Private International Equity Pool Series I 436,466 534,06410,663 Scotia Private International Small to Mid Cap

Value Pool Series I 182,909 244,73342,306 Scotia Private U.S. Large Cap Growth Pool Series I 348,387 505,77910,607 Scotia Private U.S. Mid Cap Value Pool Series I 123,128 144,58931,134 Scotia Private U.S. Value Pool Series I 358,634 506,259

3,031,064 3,829,313



NET ASSETS – 100.0% 12,739,596



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1. The Fund (note 1)i) The Fund’s investment objective is to achieve long-term capital growth and provide some current income. The Fund is an asset

allocation fund that allocates your investment between four asset classes: bonds, equities of real estate companies, Canadianequities and foreign equities. The Fund will be principally invested in equities which will include a significant position inCanadian equities and smaller positions in foreign equities and equities of real estate companies and real estate investmenttrusts. Approximately 20% of the Fund will be invested in bonds.





Revaluation of Investments at FVTPL – –




Comprehensive income as reported under Canadian GAAP $269,310

Revaluation of Investments at FVTPL –

Increase (decrease) in net assets attributable to holders of redeemable units $269,310




ii) Currency risk



Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting amarket or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2014,approximately 80.4% (December 31, 2013 – 79.1%, January 1, 2013 – 79.3%) of the Fund’s net assets attributable to holders ofredeemable units were exposed to other price risk. If prices of these investments had decreased or increased by 10%, with all othervariables held constant, net assets attributable to holders of redeemable units of the Fund would have decreased or increased,respectively, by approximately $1,023,838 (December 31, 2013 – $ 959,578, January 1, 2013 – $ 609,564). In practice, actual resultswill differ from this sensitivity analysis and the difference could be material.

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iv) Credit risk


v) Liquidity risk





Less than3 months

Accounts payable and accrued liabilities $ – $31,601 $ – $7,000 $ – $ –


$12,739,596 $31,601 $12,128,356 $7,000 $7,690,049 $ –












Mutual Funds $12,667,562 $ – $ – $12,667,562


Mutual Funds $11,890,494 $ – $ – $11,890,494


Mutual Funds $ 7,587,965 $ – $ – $ 7,587,965


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Notes to the Financial StatementsFor the years indicated in Note 1.

1. The FundsAll of the Scotia Private Pools and Pinnacle Portfoliospresented in these financial statements (individually, a “Fund”and collectively, the “Funds”) are open-ended mutual fundtrusts established under the laws of the Province of Ontariopursuant to an Amended and Restated Master Declaration ofTrust (“Declaration of Trust”) dated as at November 24, 2011,as amended from time to time. The address of the Funds’registered office is 1 Adelaide St. E, 28th Floor, Toronto,Ontario.

The inception date for each Fund is as follows:

Scotia Private Short Term Income Pool September 3, 1997

Scotia Private Income Pool September 3, 1997

Scotia Private High Yield Income Pool September 3, 1997

Scotia Private American Core-Plus Bond Pool January 28, 2002

Scotia Private Strategic Balanced Pool September 3, 1997

Scotia Private Canadian Value Pool September 3, 1997

Scotia Private Canadian Mid Cap Pool January 28, 2002

Scotia Private Canadian Growth Pool September 3, 1997

Scotia Private Canadian Small Cap Pool September 3, 1997

Scotia Private U.S. Value Pool September 3, 1997

Scotia Private U.S. Mid Cap Value Pool January 28, 2002

Scotia Private U.S. Large Cap Growth Pool January 18, 2001

Scotia Private U.S. Mid Cap Growth Pool September 3, 1997

Scotia Private International Equity Pool September 3, 1997

Scotia Private International Small to Mid Cap Value Pool January 28, 2002

Scotia Private Emerging Markets Pool September 8, 2010

Scotia Private Global Equity Pool September 3, 1997

Scotia Private Global Real Estate Pool

(the “Scotia Private Pools”)

January 28, 2002

Pinnacle Income Portfolio

(formerly, Pinnacle Balanced Income Portfolio)

April 22, 2005

Pinnacle Balanced Portfolio

(formerly, Pinnacle Conservative Balanced Growth Portfolio)

April 22, 2005

Pinnacle Growth Portfolio

(formerly, Pinnacle Conservative Growth Portfolio)

(the “Pinnacle Portfolios”)

April 22, 2005

The investment objectives and strategies for each of the Fundsare provided in the respective Fund’s “Fund Specific Notes”.

The Schedule of Investment Portfolio of each of the Funds is asat June 30, 2014. The Statements of Financial Position are as atJune 30, 2014, December 31, 2013 and January, 1, 2013, and theStatements of Comprehensive Income, Changes in Net AssetsAttributable to Holders of Redeemable Units and Cash Flowsare for the six-month periods ended June 30, 2014 and 2013.Throughout this document, reference to periods refers to thereporting periods described above.

The Manager and trustee (where applicable) of the Funds is1832 Asset Management L.P. (the “Manager”).

The Manager has Guidelines for Business Conduct (the “Code”)which applies to all of its employees. The Code is in place toprotect the interest of all of the Manager’s clients. The Codeprovides policies governing the conduct of business includingconflicts of interest, privacy issues and confidentiality.

These financial statements were approved by the Board ofDirectors of 1832 Asset Management G.P. Inc., as generalpartner for and on behalf of 1832 Asset Management L.P., in itscapacity as trustee (the “Trustee”) of the Funds andauthorized for issue on August 11, 2014.

Each of the Funds may offer one or more Series of securities:Pinnacle Series/Series A units, Series F units, Series I units, andSeries M units. Each Series of a Fund is authorized to issue anunlimited number of units, which are redeemable at the optionof the unitholder at their respective net asset value nextdetermined following receipt of the sell order by the Fund. EachSeries of units of a Fund is intended for different investors. Adescription of each Series of units is provided below:

• Series A units are only available through ScotiaMcLeod orotherwise permitted by the Manager,

• Pinnacle Series units are only available to investors whoparticipate in the Pinnacle program, through ScotiaMcLeodadvisors or as otherwise permitted by the Manager.

• Series F units are generally available to investors who havefee-based accounts with ScotiaMcLeod.

• Series I units are available to eligible institutional investorsand other qualified investors. Series I units are currentlyonly available through the Manager.

• Series M units are available to investors who have signed adiscretionary investment management agreement with theManager or Scotiatrust.

2. Summary of Significant Accounting PoliciesThese financial statements have been prepared in compliancewith International Financial Reporting Standards (IFRS)applicable to the preparation of interim financial statements,including IAS 34, Interim Financial Reporting and IFRS 1,First-time Adoption of International Financial ReportingStandards. The Funds adopted this basis of accounting in 2014as required by Canadian securities legislation and theCanadian Accounting Standards Board. Previously, the Fundsprepared their financial statements in accordance withCanadian generally accepted accounting principles as definedin Part V of the CPA Handbook (Canadian GAAP). The Fundshave consistently applied the accounting policies used in thepreparation of their opening IFRS statements of financialposition at January 1, 2013 and throughout all periodspresented, as if these policies had always been in effect. The“Fund Specific Notes” include disclosures of the impact of thetransition to IFRS on the Fund’s reported financial position,financial performance, including the nature and effect ofsignificant changes in accounting policies from those used inthe Funds’ financial statements for the year endedDecember 31, 2013 prepared under Canadian GAAP.

The policies applied in these interim financial statements arebased on IFRS issued and outstanding as of June 30, 2014. Any

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subsequent changes to IFRS that are given effect in the Fund’sannual financial statements for the year ending December 31,2014 could result in restatement of these interim financialstatements, including the transition adjustments recognized ontransition to IFRS.

(a) Financial instrument disclosures

Financial instrument disclosures include a three level fairvalue hierarchy which provides information about the relativeobservability of inputs to the fair value measurement offinancial assets and liabilities. The levels are defined asfollows:

• Level 1: Fair value is based on unadjusted quoted prices inactive markets for identical assets or liabilities;

• Level 2: Fair value is based on inputs other than unadjustedquoted prices included in Level 1 that are observable for theassets or liabilities, either directly or indirectly; and

• Level 3: Fair value is based on at least one significant non-observable input that is not supported by market data forthe financial assets or liabilities.

The three level fair value hierarchy, transfers between levelsand a reconciliation of level 3 financial instruments aredisclosed in the respective Fund’s “Fund Specific Notes”.

The Fund’s policy is to recognize transfers into and out of thefair value hierarchy levels as of the date of the event or changein circumstances giving rise to the transfer.

(b) Financial instruments

The Funds recognize financial instruments at fair value uponinitial recognition, plus transaction costs in the case offinancial instruments not measured at fair value through profitor loss (FVTPL). Purchases and sales of financial assets arerecognized at their trade date. The Funds’ investments andderivative assets and liabilities are measured at FVTPL.

The Funds’ obligation for net assets attributable to holders ofredeemable units is presented at the redemption amount. Allother financial assets and liabilities are measured at amortizedcost. These balances are short-term in nature and, therefore,their carrying values approximate fair value.

(c) Fair value measurement

Fair value is the price that would be received to sell an asset orpaid to transfer a liability in an orderly transaction betweenmarket participants at the measurement date. The fair value offinancial assets and liabilities traded in active markets (suchas publicly traded derivatives and marketable securities) arebased on quoted market prices at the close of trading on thereporting date. The Funds use the last traded market price forboth financial assets and financial liabilities where the lasttraded price falls within that day’s bid-ask spread. Incircumstances where the last traded price is not within thebid-ask spread, the Manager determines the point within thebid-ask spread that is most representative of fair value basedon the specific facts and circumstances. The Funds’ accountingpolicies for measuring the fair value of its investments andderivatives are identical to those used in measuring its netasset value (NAV) for transactions with unitholders, except

where the last traded market price for financial assets andliabilities are not within the bid-ask spread.

The fair value of financial assets and liabilities that are nottraded in an active market, including over the-counterderivatives, is determined using valuation techniques. TheFunds uses a variety of methods and makes assumptions thatare based on market conditions existing at each reporting date.Valuation techniques include the use of comparable recentarm’s length transactions, reference to other instruments thatare substantially the same, discounted cash flow analysis,option pricing models and others commonly used by marketparticipants and which make the maximum use of observableinputs.

The Manager is responsible for performing the fair valuemeasurements included in the financial statements of theFunds, including level 3 measurements. The Manager obtainspricing from a third party pricing vendor, which is monitoredand reviewed by the valuation team daily. At each financialreporting date, the Manager reviews and approves all level 3fair value measurements. The Funds also have a ValuationCommittee which includes the Chief Financial Officer andmembers of the finance team, as well as members of theportfolio management and compliance teams. The committeemeets quarterly to perform detailed reviews of the valuations ofinvestments held by the Fund.

The fair value of financial assets and liabilities as at thefinancial reporting period end dates are determined as follows:

(i) North American equities are valued at the closingmarket price recorded by the security exchange onwhich the security is principally traded. Non-NorthAmerican equities are valued at fair value provided byan independent pricing source.

(ii) Fixed income securities, including bonds andmortgage-backed securities, are valued using modelswith inputs including interest rate curves, creditspreads and volatilities.

(iii) Short-term debt instruments are carried at FVTPL,which approximates cost plus accrued interest.

(iv) Investments in underlying funds are valued based onthe Net Asset Value per unit provided by the underlyingfund’s manager at the end of each valuation date.

(v) Open forward currency contracts are valued at the gainor loss that would arise as a result of closing theposition on the valuation date. The unrealized gain orloss, for the period is reflected in the Statements ofComprehensive Income as “Change in unrealizedappreciation (depreciation) of currency forwards”.Realized gains or losses on forward currency contractswould arise as a result of the closing of a position onthe settlement date. The net realized gain or loss isreported as “Net realized gain (loss) on currencyforwards” in the Statements of Comprehensive Income.

(vi) Unlisted warrants are valued using the Black-Scholesoption valuation model. The model factors in the timevalue of money and the volatility inputs significant tosuch valuation.

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(vii) Futures contracts are valued at their close prices forfinancial reporting purposes at the close of business oneach valuation date of the reporting period. Anydifference between the settlement value at the close ofbusiness on the current valuation date and that of theprevious valuation date is settled into cash daily andrecorded in the Statements of Comprehensive Incomeas “Net realized gain (loss) on future contracts” or“Index futures contract income”. Amounts receivable(payable) on settlement of futures contracts arereflected in the Statements of Financial Position as“Receivable for (Payable for) futures contracts”.

(viii) Options are valued at their close price as reported bythe principal exchange or over-the-counter market onwhich the contract is traded. Any difference resultingfrom revaluation at the reporting date is treated asunrealized appreciation (depreciation) of investments.

Premiums paid for purchased call and put options areincluded in options purchased in the Statements ofFinancial Position. When a purchased option expires,the Fund will realize a loss in the amount of the cost ofthe option. For the closing transaction of the purchasedput options, the Fund will realize a gain or lossdepending on whether the proceeds are greater or lessthan the premium paid at the time of purchase. When apurchased call option is exercised, the cost of securitypurchased is increased by the premium paid at thetime of purchase.

Premiums received from writing options are included asa liability for written options in the Statements ofFinancial Position. When a written option expiresunexercised, premiums received from writing optionsare recorded as income on the Statements ofComprehensive Income. When a written call option isexercised, the Fund will record a realized loss if the costof closing the transaction exceeds the premium received;the Fund will record a realized gain if the premiumreceived is greater than the amount paid for closing thetransaction. When a written put is exercised, the cost ofthe security purchased is reduced by the premiumsreceived at the time the option was written.

(ix) Gold bullion is carried at FVTPL and based on the pricequote provided by an independent pricing source.

(d) Investment transactions and income recognition

Investment transactions are accounted for on a trade datebasis. Transaction costs directly attributable to the acquisitionor disposal of an investment are expensed and are included in“Transaction costs” in the Statements of ComprehensiveIncome. The investment cost of a security represents theamount paid and is determined on an average cost basisexcluding transaction costs.

Dividend income and distributions from underlying funds arerecognized on the ex-dividend date.

Interest for distribution purposes is recognized on an accrualbasis based on the coupon rate. The Fund does not amortizepremiums paid or discounts received on the purchase of fixedincome securities except for zero coupon bonds which areamortized on a straight line basis.

Distributions received from income trusts are recognized based onthe nature of the underlying components such as dividend income,interest income, capital gains, and return of capital by applyingprevious year characterizations reported by the trust as currentyear characterizations are not available until the following year.

Realized gain or loss on the sale of short-term debt instrumentsare recorded as an adjustment to interest income fordistribution purposes.

Income, realized gain (loss) and unrealized gain (loss) areallocated among the Series on a pro rata basis.

(e) Functional currency and foreign exchange translation

The reporting currency for the Funds is the Canadian dollar,which is the functional currency and the currency in whichsubscriptions and redemptions of units are primarilydenominated. Any currency other than functional currencyrepresents foreign currency to the Funds.

Amounts denominated in foreign currencies are converted intothe functional currency as follows:

(i) fair value of investments, forward and spot currencycontracts and other assets and liabilities at the rates ofexchange prevailing as at the valuation date; and

(ii) purchase and sale of investments and investmentincome at the rates of exchange prevailing on therespective dates of such transactions.

Foreign exchange gain (loss) on purchases and sales of foreigncurrencies are included in “Net realized gain (loss) on foreignexchange” in the Statements of Comprehensive Income.

(f) Increase (decrease) in net assets attributable to holders ofredeemable units per unit

“Increase (decrease) in net assets attributable to holders ofredeemable units per unit” is disclosed in the Statements ofComprehensive Income and represents, for each Series of units,the increase or decrease in net assets attributable to holders ofredeemable units from operations for the period attributable toeach Series divided by the weighted average number of unitsoutstanding for the corresponding Series during the period.

(g) Cash

Cash is comprised of cash on deposit and is stated at fair value.

3. Significant accounting judgments, estimatesand assumptionsThe preparation of financial statements requires management touse judgment in applying its accounting policies and to makeestimates and assumptions about the future. These estimates aremade based on information available as at the date of issuance ofthe financial statements. Actual results could materially differfrom those estimates. The following discusses the mostsignificant accounting judgments and estimates that the Fundhas made in preparing the financial statements:

Fair value measurement of derivatives and securities not quoted in anactive marketKey areas of estimation, where the Manager has made complexor subjective judgments, include the determination of fair

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values of financial instruments and derivatives that are notquoted in an active market. The use of valuation techniques forfinancial instruments and derivatives that are not quoted in anactive market requires the Manager to make assumptions thatare based on market conditions existing as at the date of thefinancial statements. Changes in these assumptions as a resultof changes in market conditions could affect the reported fairvalue of financial instruments and derivatives.

Classification and measurement of investments and application of thefair value optionIn classifying and measuring financial instruments held by theFund, the Manager is required to make significant judgmentsabout whether or not the business of the Funds is to invest on atotal return basis for the purpose of applying the fair valueoption for financial assets under IAS 39, “FinancialInstruments: recognition and measurement”. The mostsignificant judgments made include the determination thatcertain financial instruments are held-for-trading and that thefair value option can be applied to those which are not.

The Funds have designated their investments in equity, debtsecurities at fair value through profit or loss. Derivatives arecategorized as held for trading and transfers measured atFVTPL.

4. Discussion of Financial Instrument RiskEach Fund’s investment activities expose it to a variety offinancial risks: market risk (including interest rate risk,currency risk, and other price risk), credit risk and liquidityrisk. Each Fund’s investment practices include portfoliomonitoring to ensure compliance with stated investmentguidelines. The Manager seeks to minimize potential adverseeffects of risks on each Fund’s performance by employing andoverseeing professional and experienced portfolio advisors thatregularly monitor each Fund’s securities and financial marketdevelopments. The risks are measured using a method thatreflects the expected impact on the results and Net Assetsattributable to holders of redeemable units of the Funds fromreasonably possible changes in the relevant risk variables.

The Manager maintains a risk management practice that includesmonitoring compliance with investment restrictions to ensure thatthe Funds are being managed in accordance with the Funds’stated investment objectives, strategies and securities regulations.

Some Funds invest in underlying funds. These Funds areindirectly exposed to market risk, credit risk, and liquidity riskin the event that the underlying funds invest in financialinstruments that are subject to those risks.

A Fund’s exposure to market risk, credit risk and liquidity risk,where applicable, is disclosed in the respective Fund’s “FundSpecific Notes”. Where the exposure to a particular risk is notdisclosed, the Manager has assessed the potential impact ofthat risk to be not significant.

(a) Market riski) Interest rate riskInterest rate risk arises from the possibility that changes ininterest rates will affect the future cash flows or the fair valuesof interest-bearing financial instruments. Each Fund’sexposure to interest rate risk is concentrated in its

investments in debt securities (such as bonds and debentures)and interest rate derivative instruments, if any. Short-terminvestments and other assets and liabilities are short-term innature and/or non-interest bearing and are not subject to asignificant amount of interest rate risk due to fluctuations inthe prevailing levels of market interest rates.

ii) Currency riskThe Funds may invest in monetary assets denominated incurrencies other than its functional currency. Currency risk isthe risk that the value of foreign investments will fluctuate dueto changes in the foreign exchange rates of those currencies inrelation to the Fund’s functional currency. Other financialassets (including dividends and interest receivable andreceivable for investments sold) and financial liabilities thatare denominated in foreign currencies do not expose the Fundto significant currency risk.

Funds may enter into foreign exchange forward contracts orcurrency futures contracts for hedging purposes to reducetheir foreign currency risk exposure.

iii) Other price riskOther price risk is the risk that the fair value of a Fund’sfinancial instruments will fluctuate as a result of changes inmarket prices (other than those arising from interest rate risk orcurrency risk) caused by factors specific to a security, its issueror all factors affecting a market or a market segment. Exposureto other price risk is mainly in equities and commodities. Themaximum risk resulting from these financial instruments isequivalent to their fair value, except for written options andfuture contracts sold, where possible losses can be unlimited.

(b) Credit risk

Credit risk is the risk that the counterparty to a financialinstrument will fail to discharge an obligation or commitment thatit has entered into with the Fund. Where the Fund invests in debtinstruments, this represents the main concentration of credit risk.The fair value of debt instruments includes consideration of thecreditworthiness of the issuer, and accordingly, represents themaximum credit risk exposure to the Fund. Credit risk may alsoexist in relation to counterparties to futures, swaps and forwardcurrency contracts. The risk of default is considered minimal, asdelivery of securities sold is only made once the broker hasreceived payment. Payment is only made on a purchase once thesecurities have been received by the broker.

The credit ratings reported for counterparties to debtinstruments are Standard & Poor’s credit rating or Standard &Poor’s equivalent for credit ratings from other approved ratingagencies. In addition, custody and derivative transactions arecarried out by counterparties that have a Standard & Poor’scredit rating of A or higher.

A Fund may enter into securities lending transactions withcounterparties whereby the Fund temporarily exchangessecurities for collateral with a commitment by the counterpartyto deliver the same securities on a future date. Credit riskassociated with these transactions is considered minimal as allcounterparties have approved credit rating and the marketvalue of cash or securities held as collateral must be at least104% of the fair value of the securities loaned as at the end ofeach trading day.

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(c) Liquidity risk

The Fund’s exposure to liquidity risk arises primarily from thedaily cash redemption of units. The Fund primarily invests insecurities that are traded in active markets and can be readilydisposed of. In addition, the Fund aims to retain sufficient cashand cash equivalent positions to maintain liquidity. The Fundmay, from time to time, enter into over-the-counter derivativecontracts or invest in securities that are not traded in an activemarket and may be illiquid. Illiquid securities are identified inthe respective Fund’s Schedule of Investment Portfolio.

(d) Concentration risk

Concentrations of risk arise from financial instruments thathave similar characteristics and are affected similarly bychanges in economic or other conditions. The identificationand disclosure of risks concentration is provided in therespective Fund’s “Fund Specific Notes”.

5. Management FeesEach Fund pays the Manager a management fee with respect toeach series of units, other than Series I units, for providinggeneral management services. The management fees cover thecosts of managing the Fund, arranging for investment analysis,recommendations and investment decision making for thefund, arranging for distribution of the Funds, marketing andpromotion of the funds and providing or arranging for otherservices. Management fees for Series I units of a Fund arenegotiated and paid directly by the investor, not by the Fund,and will not exceed 1.25% on Money Market and Bond Fundsand 2.5% on all other Funds. The Funds’ management fees arecalculated daily and payable monthly on the first business dayof the following calendar month. The Manager is entitled to amaximum annual management fee, exclusive of sales taxes, asfollows:

% of Net Asset Value

Series A Units Series F Units Series M Units

Scotia Private Short Term

Income Pool – 0.50% –

Scotia Private Income Pool – 0.70% –

Scotia Private High Yield

Income Pool – 0.75% 0.30%

Scotia Private American

Core-Plus Bond Pool – 0.75% –

Scotia Private Strategic

Balanced Pool – 1.00% –

Scotia Private Canadian

Value Pool – 1.00% –

Scotia Private Canadian Mid

Cap Pool – 1.00% –


Growth Pool – 1.00% –


Small Cap Pool – 1.00% –

Scotia Private U.S. Value

Pool – 1.00% –

Scotia Private U.S. Mid Cap

Value Pool – 1.00% 0.55%

Scotia Private U.S. Large

Cap Growth Pool – 1.00% –

% of Net Asset Value

Series A Units Series F Units Series M Units

Scotia Private U.S. Mid Cap

Growth Pool – 1.00% 0.55%

Scotia Private International

Equity Pool – 1.00% –

Scotia Private International

Small to Mid Cap Value

Pool – 1.00% –

Scotia Private Emerging

Markets Pool – – 0.70%

Scotia Private Global Equity

Pool – 1.00% –

Scotia Private Global Real

Estate Pool – 1.00% –

Pinnacle Portfolios

Pinnacle Income Portfolio 1.85% – –

Pinnacle Balanced Portfolio 2.10% – –

Pinnacle Growth Portfolio 2.40% – –

Management fees disclosed for the Pinnacle Portfolios areinclusive of the management fees charged to the underlyingfunds. There is no duplication of fees.

No management fees are charged by the Manager in respect ofthe Pinnacle Series units of the Scotia Private Pools.

Effective August 22, 2014, the management fee rate for Series Funits of Scotia Private U.S. Mid Cap Value Pool and Series Funits of Scotia Private U.S. Mid Cap Growth Pool will belowered from 1.00% to 0.80%.

6. Redeemable UnitsUnits issued and outstanding represent the capital of eachFund. Each of the Funds may issue an unlimited number ofunits. Each unit is redeemable at the option of the unitholderin accordance with the Declaration of Trust, ranks pari passuwith all other units of the Fund and entitles the unitholder to aproportionate undivided interest in the Net Asset Value of theFund. Unitholders are entitled to distributions when declared.Distributions on units of a Fund are reinvested in additionalunits of the Fund or at the option of the unitholder, paid incash. The Funds’ capital is managed in accordance with each ofthe Funds’ investment objectives, policies and restrictions, asoutlined in the Funds’ prospectus. The Funds have no specificrestrictions or specific capital requirements on thesubscriptions or redemptions of units, other than minimumsubscription requirements.

The units of each Series of the Funds are issued and redeemedat their NAV per unit of each Series which is determined as ofthe close of business on each day that the Toronto StockExchange is open for trading. The NAV per unit is calculated bydividing the Net Assets per Series by the total number ofoutstanding units of each Series.

Classification of Redeemable Units Issued by the FundThe Funds’ units do not meet the criteria in IAS 32 forclassification as equity and therefore, have been classified asfinancial liabilities. The Funds’ outstanding units include acontractual obligation to distribute any net income and net

144

realized capital gains annually in cash (at the request of theunitholder), therefore the ongoing redemption feature is notthe units’ only contractual obligation. In addition, certainFunds have multiple features across the different series of the

fund. Consequently, the Funds’ outstanding redeemable unitsare classified as financial liabilities in accordance with therequirements of International Accounting Standard 32Financial Instruments: Presentation.”

For the periods ended June 30, 2014 and 2013, the following numbers of units were issued, re-invested and redeemed:

2014 2013

FundsUnitsIssued

UnitsReinvested

UnitsRedeemed (i)

UnitsIssued

UnitsReinvested

UnitsRedeemed (i)

Scotia Private Short Term Income Pool

Pinnacle Series Units 91,299 1,500 285,043 242,593 2,126 670,280

Series F Units 15,130 27 233 600 22 68

Scotia Private Income Pool

Pinnacle Series Units 3,823,109 439,069 2,121,897 2,161,899 403,442 2,195,309

Series F Units 7,777 3,253 180,954 62,457 8,539 1,059,524

Series I Units 151,885 50,270 24,419 104,324 47,166 66,524

Scotia Private High Yield Income Pool

Pinnacle Series Units 1,363,310 398,721 983,781 1,016,413 419,301 1,633,783

Series F Units 127,624 7,967 38,823 131,013 8,627 45,035

Series I Units 10,570,955 1,261,902 3,047,301 7,156,728 983,354 251,309

Series M Units 6,296,475 643,147 8,927,198 8,685,380 646,683 3,149,333

Scotia Private American Core-Plus Bond Pool


Series F Units 248 127 – 3,036 114 653

Series I Units 14,529,417 800,963 1,807,279 9,935,890 490,254 165,827

Scotia Private Strategic Balanced Pool


Series F Units 7,615 212 – 13,086 249 –

Scotia Private Canadian Value Pool

Pinnacle Series Units 536,784 – 464,187 598,257 – 418,416

Series F Units 2,261 – 1,223 6,471 – 3,588

Series I Units 9,194 – 38,129 21,627 – 14,600

Scotia Private Canadian Mid Cap Pool


Series F Units 1,874 – 328 2,026 – 1,113

Series I Units 1,382 – 25,383 124 – 23,904

Scotia Private Canadian Growth Pool


Series F Units 8,965 – 6,366 6,065 – 5,713

Series I Units 2,459,551 – 1,487,530 1,955,300 – 29,014

Scotia Private Canadian Small Cap Pool

Pinnacle Series Units 136,291 136,292 236,194 91,532 – 219,917

Series F Units 15,286 – 4,703 1,750 – 387

Series I Units 1,994,381 – 884,387 1,364,390 – 34,447

Scotia Private U.S. Value Pool


Series F Units 10,115 – 2,404 9,916 – 848

Series I Units 2,865,080 – 15,569,459 2,893,231 – 156,815

Scotia Private U.S. Mid Cap Value Pool


Series F Units 8,813 – 377 1,426 – –

Series I Units – – – 161 – 2,238

Series M Units 195,167 – 252,026 130,496 – 143,222

Scotia Private U.S. Mid Cap Growth Pool


Series F Units 1,662 – 62 380 – –

Series I Units 1,540,722 – 228,914 419,526 – 2,874

Series M Units 114,616 – 107,771 95,921 – 102,789

Scotia Private U.S. Large Cap Growth Pool


Series F Units 12,896 – 1,027 4,911 – 1,166

Series I Units 22,320 – 21,931 14,788 – 44,875

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2014 2013

FundsUnitsIssued

UnitsReinvested

UnitsRedeemed (i)

UnitsIssued

UnitsReinvested

UnitsRedeemed (i)

Scotia Private International Equity Pool


Series F Units 8,836 – 2,652 9,818 – 1,736

Series I Units 9,267,394 – 31,276,875 9,990,934 – 297,190

Scotia Private International Small to Mid Cap Value Pool


Series F Units 30,187 – 770 1,525 – 412

Series I Units 332 – 7,678 1,927 – 28,946

Scotia Private Emerging Markets Pool


Series I Units 3,644,997 – 11,019,688 4,618,584 – 13,174

Series M Units 447,570 – 1,294,442 347,062 – 594,854

Scotia Private Global Equity Pool


Series F Units 17,085 – 8,146 2,057 – 3,258

Series I Units 3,274,089 – 12,434,705 4,363,402 – 277,734

Scotia Private Global Real Estate Pool

Pinnacle Series Units 705,291 – 614,276 445,282 – 1,173,003

Series F Units 74,461 – 5,556 11,112 – 1,813

Series I Units 1,138,711 – 8,386,631 2,140,577 – 93,154

Pinnacle Income Portfolio

Series A Units 58,352 – 146,717 76,471 – 104,734

Pinnacle Balanced Portfolio

Series A Units 540,909 – 479,688 403,230 – 580,605

Pinnacle Growth Portfolio

Series A Units 59,407 – 81,984 34,313 – 51,276

(i) Included in units redeemed are redemptions related to payments of the Pinnacle Program Fee, where applicable.

7. Operating ExpensesEach Fund is responsible for operating expenses relating to thecarrying on of its business. Each series of a Fund is allocatedits own expenses and its proportionate share of the Fund’sexpenses that are common to all series. Operating expensesmay include legal fees and other costs incurred in order tocomply with legal and regulatory requirements and policies,audit fees, custodial fees, taxes, brokerage commissions,unitholder communication costs and other administrationcosts. Examples of other administrative costs includedepartmental expenses incurred and paid by the Managerwhich support the daily operation of the funds. Administrationservice expenses paid to the Manager for the periods endedJune 30, 2014 and 2013 are as follows:

Fund 2014 2013

Scotia Private Short Term Income Pool $ 290 $ 381

Scotia Private Income Pool 11,749 11,704

Scotia Private High Yield Income Pool 31,831 25,342

Scotia Private American Core-Plus Bond Pool 19,449 12,722

Scotia Private Global Real Estate Pool 9,231 9,646

Scotia Private Strategic Balanced Pool 1,513 1,499

Scotia Private Canadian Value Pool 4,908 4,277

Scotia Private Canadian Mid Cap Pool 2,322 1,983

Scotia Private Canadian Growth Pool 10,578 7,750

Scotia Private Canadian Small Cap Pool 16,371 10,718

Scotia Private U.S. Value Pool 11,499 12,372

Scotia Private U.S. Mid Cap Value Pool 1,079 931

Scotia Private U.S. Large Cap Growth Pool 2,410 2,043

Scotia Private U.S. Mid Cap Growth Pool 4,893 3,121

Fund 2014 2013

Scotia Private International Equity Pool $20,358 $20,490

Scotia Private International Small to Mid Cap Value Pool 1,580 1,462

Scotia Private Emerging Markets Pool 6,226 5,803

Scotia Private Global Equity Pool 14,797 15,515

Pinnacle Income Portfolio 511 578

Pinnacle Balanced Portfolio 3,057 2,509

Pinnacle Growth Portfolio 476 316

The ratio of operating expenses (excluding taxes, interest andbrokerage commissions) expressed as a percentage of theaverage daily NAV of the respective Fund is referred to as theoperating expense ratio. The operating expense ratio ofPinnacle Series of each Scotia Private Pool may not exceed0.50% on an annualized basis as specified in the Scotia PrivatePools’ simplified prospectus. Each Series of the Funds incursthe expenses which are directly attributable to that Series.Common expenses of the Fund are allocated on a pro rata basisto each Series of the Fund based on its respective NAV.

The Manager, at its’ sole discretion, absorbs operatingexpenses otherwise payable by certain Series. The absorbedexpenses are reflected in the Statements of ComprehensiveIncome.

Effective August 22, 2014, the Manager pays the operatingexpenses of the Fund, other than other fund costs (as definedbelow) and taxes (the “Operating Expenses”), in exchange forthe payment by the fund of an annual fixed rate administrationfee (the “Administration Fee”) with respect to each series ofthe Fund, subject to a transitional adjustment payment up toDecember 31, 2016, the details of which are presented in the

146

fund’s simplified prospectus. The Operating Expenses payableby the Manager include, but are not limited to, legal fees andother costs incurred in order to comply with legal andregulatory requirements and policies, audit fees, taxes,unitholder communication costs and other administrativecosts.

In addition to the Administration Fee, the fund also pays “otherfund costs”, which include the costs and expenses related tothe IRC of the funds, costs associated with the conversion toInternational Financial Reporting Standards (“IFRS”) and theongoing audit costs associated with compliance with IFRS, thecost of any government or regulatory requirements imposedcommencing after May 14, 2014, and any new types of costs,expenses or fees not incurred prior to May 14, 2014, includingthose related to external services that were not commonlycharged in the Canadian mutual fund industry as of May 14,2014, any fee introduced after May 14, 2014 by a securitiesregulator or other government authority that is based on theassets or other criteria of the Funds, any transaction costs,including all fees and costs related to derivatives, and anyborrowing costs (collectively, “other fund costs”), and taxes(including, but not limited to, GST or HST, as applicable).

The Administration Fee is equal to a specified percentage ofthe net asset value of each series of the Fund, calculated andpaid in the same manner as the management fees for the fund.

Prior to August 22, 2014, the Fund was responsible for itsOperating Expenses, which comprise a portion of themanagement expense ratio of the series of the Fund.

8. Pinnacle Program FeeEach Pinnacle Series unitholder of the Scotia Private Pools hasagreed to pay, on a quarterly basis, a negotiated asset based feefor all services in respect of their respective investment in theScotia Private Pools. These fees are paid directly toScotiaMcLeod by redemption of units held in the Scotia PrivatePools, unless otherwise determined by ScotiaMcLeod.

9. Income TaxesThe Funds qualify as mutual fund trusts under the Income TaxAct (Canada). The Funds are not subject to tax on theirincome, including net realized capital gains that are paid orpayable to their unitholders. Each of the Funds distributessufficient amounts of its net investment income, including netrealized capital gains, less the amount retained to enable eachFund to utilize any available tax losses or tax creditattributable to redemptions during the period to its unitholderssuch that no income tax will be paid or payable by the Funds.Such net investment income, including net realized capitalgains are taxable in the hands of the unitholders. Accordingly,no provision for income taxes has been recorded in thesefinancial statements.

In certain circumstances, the Funds may distribute a return ofcapital. A return of capital is generally not taxable to unitholdersbut will reduce the adjusted cost base of the units held.

Losses Carried ForwardCapital losses may be carried forward indefinitely to reducefuture net realized capital gains. Non-capital losses for incometax purposes may be carried forward for up to twenty years andapplied against all sources of income. The following Fundshave capital and/or non-capital losses carried forward as atDecember 15, 2013.

FundYear ofexpiry

Non-CapitalLoss $

CapitalLoss $

Scotia Private High Yield Income Pool – – 15,534,095

Scotia Private American Core-Plus Bond Pool – – 11,061,967

Scotia Private Strategic Balanced Pool – – 10,777,531

Scotia Private Canadian Value Pool – – 12,374,238

Scotia Private Canadian Mid Cap Pool – – 1,315,387

Scotia Private Canadian Growth Pool – – 47,804,048

Scotia Private U.S. Mid Cap Value Pool – – 3,852,035

Scotia Private U.S. Large Cap Growth Pool – – 15,695,832

Scotia Private U.S. Mid Cap Growth Pool – – 42,357,257

Scotia Private International Equity Pool – – 66,580,653

Scotia Private International Small to Mid Cap Value Pool – – 25,339,016

Scotia Private Emerging Markets Pool – – 11,070,646

Scotia Private Global Equity Pool – – 31,548,759

Scotia Private Global Real Estate Pool – – 22,085,312

Pinnacle Balanced Portfolio – – 1,463,209

Pinnacle Growth Portfolio 2030 204,326 1,315,057

2032 2,849 –

Since the Funds do not record income taxes, the tax benefit ofcapital and non-capital losses have not been reflected in theStatements of Financial Position as a deferred income taxasset.

Withholding TaxesThe Funds currently incur withholding taxes imposed bycertain countries on investment income and capital gains.Such income and gains are recorded on a gross basis and therelated withholding taxes are shown as a separate expense inthe Statements of Comprehensive Income.

10. Client Brokerage CommissionsClient brokerage commissions are arrangements pursuant towhich products or services, other than the execution ofportfolio securities transactions, are obtained by a portfolioadviser from or through a broker-dealer in exchange fordirecting client securities transactions to the broker-dealer.The ascertainable client brokerage commission arrangementsin connection with investment portfolio transactions for theperiods ended June 30, 2014 and 2013 are set out below.

Fund 2014 2013

Scotia Private Canadian Mid Cap Pool $ 1,114 $ –



Scotia Private U.S. Value Pool 39,425 15,208

Scotia Private U.S. Mid Cap Value Pool 6,859 2,922

Scotia Private U.S. Mid Cap Growth Pool 974 23,330

Scotia Private International Equity Pool 7,049 6,906

Scotia Private International Small to Mid Cap Value Pool 11,671 11,274

Scotia Private Emerging Markets Pool 103,518 21,977

Scotia Private Global Equity Pool 8,447 24,296


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For client brokerage commissions paid to related parties,please refer to Note 12(b) for more information.

11. Securities LendingSome of the Funds may enter into securities lendingtransactions under a securities lending program with theircustodian, The Bank of Nova Scotia (“Scotiabank) (creditrating of A+ by Standard & Poor’s). These transactions involvethe temporary exchange of securities for collateral with acommitment to return the same securities to the Fund on afuture date. The income earned from these securities lendingtransactions is recorded in the Statements of ComprehensiveIncome. The fair value of the securities lent and collateral heldis determined on a daily basis. The securities lendingarrangement can be terminated by the borrower, the securitieslending agent or the Fund at any time. The aggregate marketvalue of all securities loaned by a Fund cannot exceed 50% ofthe Net Assets of the Fund.

The Funds receive collateral of at least 104% of the value of thesecurities on loan. Collateral is received in the form of debtobligations of the Government of Canada, a Canadianprovincial government, the government of the United States ofAmerica, certain financial institutions or other qualifiedsecurities, and is not included in the Schedule of InvestmentPortfolio. The aggregate market value of the securities on loanand the collateral received by the Funds as at June 30,2014, December 31, 2013 and January 1, 2013 are as follows:

As at June 30, 2014

FundsMarket value ofsecurities on loan

Market value ofcollateral received

Scotia Private Short Term Income Pool $ 101,078 $ 107,818

Scotia Private Income Pool 71,899,017 78,208,949

Scotia Private High Yield Income Pool 103,086,842 108,914,968

Scotia Private American Core-Plus Bond

Pool 28,217,224 29,919,035

Scotia Private Strategic Balanced Pool 5,580,189 5,939,008

Scotia Private Canadian Value Pool 910,562 2,862,711

Scotia Private Canadian Mid Cap Pool 7,547,004 8,589,450

Scotia Private Canadian Growth Pool 7,762,069 9,248,255

Scotia Private Canadian Small Cap Pool 37,380,536 67,568,708

Scotia Private U.S. Value Pool 8,527,522 9,021,331


Scotia Private U.S. Large Cap Growth

Pool 322,595 340,454

Scotia Private U.S. Mid Cap Growth

Pool 363,234 385,800

Scotia Private International Equity Pool 25,697 26,866

Scotia Private International Small to

Mid Cap Value Pool 456,849 937,787

Scotia Private Emerging Markets Pool 3,427,417 3,594,930

Scotia Private Global Equity Pool 3,849,264 4,062,361


As at December 31, 2013



Scotia Private Income Pool $56,409,222 $59,133,241



Pool 11,951,233 12,561,784

As at December 31, 2013



Scotia Private Strategic Balanced Pool $ 5,768,399 $ 6,058,302

Scotia Private Canadian Value Pool 1,416,936 1,480,094







Pool 71,795 74,677


Pool 3,852,806 4,025,375

Scotia Private International Equity Pool 8,384,667 8,755,047




Scotia Private Global Real Estate Pool 4,028,919 4,210,871

As at January 1, 2013



Scotia Private Income Pool $73,982,228 $77,869,418



Pool 9,110,358 9,570,772

Scotia Private Strategic Balanced Pool 8,748,010 9,537,691

Scotia Private Canadian Value Pool 1,348,020 1,444,471






Pool 279,857 309,623


Pool 307,589 337,073




Scotia Private Global Real Estate Pool 4,551,135 4,747,190

12. Related Party Transactions(a) The Manager is a wholly-owned subsidiary of Scotiabankand a related party to the Funds. The Manager earns fees foracting as trustee and manager of the Funds. In addition,Scotiabank is the custodian of the Funds and earns a fee forproviding custody and related services. The management fees,administration fees and custodian fees are disclosed inseparate line items in the Statement of ComprehensiveIncome. Administration service expenses are disclosed inNote 7.

(b) Units of the Funds are distributed through brokers anddealers which include Scotia Securities Inc., Scotia CapitalInc. (“SCI”) (including ScotiaMcLeod and Scotia iTRADE, eacha division of SCI), and HollisWealth Advisory Services Inc., allwholly-owned subsidiaries of Scotiabank and related parties tothe Manager.

148

The Funds may also invest in securities issued by Scotiabankand execute portfolio transactions through SCI. The brokeragefees paid to related parties for the periodss ended June 30,2014 and 2013 are as follows:

2014 2013

Funds Scotia Capital Inc.

Scotia Private Strategic Balanced Pool $ 345 $ 423

Scotia Private Canadian Value Pool 3,915 4,288

Scotia Private Canadian Mid Cap Pool 906 2,609



Scotia Private U.S. Large Cap Growth Pool – 50

(c) As at June 30, 2014, December 31, 2013 and January 1,2013, certain Funds invested in units of the Funds managed bythe Manager. The holdings are disclosed in the Schedule ofInvestment Portfolio, as applicable.

(d) The Manager received approval from the IndependentReview Committee to invest the Funds’ overnight cash withScotiabank with interest paid by Scotiabank to the Fundsbased on prevailing market rates. The interest earned by theFunds is reflected in the Statements of Comprehensive Incomein “Interest for distribution purposes” in the Income section.

13. Transition to IFRSThe effect of each of the Funds’ transition to IFRS issummarized in this note as follows:

Transition electionsThe only voluntary exemption adopted by the Funds upontransition was the ability to designate a financial asset orliability at fair value through profit and loss upon transition toIFRS. All financial assets or liabilities designated at FVTPLupon transition were previously valued at fair value underCanadian GAAP as required by Accounting Guideline 18,Investment Companies.

Statement of cash flowsUnder Canadian GAAP, the Funds were exempt from providinga statement of cash flows. IAS 1 requires that a complete set offinancial statements include a statement of cash flows for thecurrent and comparative periods, without exception.

Reconciliations and explanation of any significant adjustmentsThe following reconciliations between IFRS and CanadianGAAP, as required by IFRS 1 for each Fund are disclosed in therespective Fund’s “Fund Specific Notes”.

• Statement of financial position reconciliation as previouslyreported under Canadian GAAP to IFRS

• Statement of comprehensive income reconciliation aspreviously reported under Canadian GAAP to IFRS

Classification of redeemable units issued by the FundsUnder Canadian GAAP, the Funds accounted for theirredeemable units as equity. Under IFRS, IAS 32 requires thatunits or shares of an entity which include a contractualobligation for the issuer to repurchase or redeem them for cash

or another financial asset be classified as financial liability.The Funds’ units do not meet the criteria in IAS 32 forclassification as equity and therefore, have been reclassified asfinancial liabilities on transition to IFRS.

Revaluation of investments at FVTPLUnder Canadian GAAP, the Funds measured the fair values ofinvestments in accordance with Section 3855, FinancialInstruments – Recognition and Measurement, which requiredthe use of bid prices for long positions and ask prices for shortpositions, to the extent such prices were available. Under IFRS,the funds measure the fair values of its investments using theguidance in IFRS 13, Fair Value Measurement (IFRS 13),which requires that if an asset or a liability has a bid price andan ask price, then its fair value is to be based on a price withinthe bid-ask spread that is most representative of fair value. Italso allows the use of mid-market pricing or other pricingconventions that are used by market participants as a practicalexpedient for fair value measurements within a bid-ask spread.As a result, upon adoption of IFRS an adjustment wasrecognized to adjust for the carrying amount of the Funds’investments.

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Management’sResponsibilityforFinancialReporting

The accompanying financial statements of the Funds (as defined in Note 1) havebeen prepared by 1832 Asset Management L.P. in its capacity as manager(the “Manager”) of the Funds and have been approved by the Board of Directors of1832 Asset Management G.P. Inc., as general partner for and on behalf of 1832 AssetManagement L.P., in its capacity as trustee (the “Trustee”) of the Funds. The Board ofDirectors of 1832 Asset Management G.P. Inc., as general partner for and on behalf of1832 Asset management L.P is responsible for the information and representationscontained in these financial statements and the management report of fundperformance.

The Manager maintains appropriate processes to ensure that relevant and reliablefinancial information is produced. The financial statements have been prepared inaccordance with Canadian generally accepted accounting principles and includecertain amounts that are based on estimates and judgments made by the Manager.The significant accounting policies which the Manager believes are appropriate forthe Funds are described in Note 2 to the financial statements.

The Finance Committee of the Board of Directors of 1832 Asset Management G.P. Inc.is responsible for reviewing the financial statements and the management report offund performance and recommending them to the Board of Directors of 1832 AssetManagement G.P. Inc. for approval, in addition to meeting with management, internalauditors and external auditors to discuss internal controls over the financial reportingprocess, auditing matters and financial reporting issues.

Jordy Chilcott

Co-President

1832 Asset Management L.P.

Stephen Morson

Chief Financial Officer

1832 Asset Management L.P.

August 11, 2014

150

SM54D 9098E (08/14)

For more information about Scotia Private Pools™ and Pinnacle Portfolios:

visit:www.scotiabank.com/scotiaprivatepoolswww.scotiabank.com/pinnacleportfolios

call:1-800-268-9269 (English)1-800-387-5004 (French)

write:1832 Asset Management L.P.

1 Adelaide Street East 28th Floor

Toronto, OntarioM5C 2V9

® Registered trademark of The Bank of Nova Scotia, used under licence.™ Trademark of The Bank of Nova Scotia, used under licence.

Documents

Scotia Private Pools Pinnacle Portfolios Semi-AnnualReport...Scotia Private Short Term Income Pool (Unaudited) STATEMENTS OF FINANCIAL POSITION As at June 30, 2014 December 31, 2013