Scotiabank · 2018. 7. 20. · Scotia Private Pools® and Pinnacle Portfolios Annual Report...
Transcript of Scotiabank · 2018. 7. 20. · Scotia Private Pools® and Pinnacle Portfolios Annual Report...
Scotia Private Pools®and
Pinnacle PortfoliosAnnual ReportDecember 31, 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 Funds8 • Scotia Private Income Pool15 • Scotia Private High Yield Income Pool25 • Scotia Private American Core-Plus Bond Pool
Balanced Fund40 • Scotia Private Strategic Balanced Pool
Canadian Equity Funds49 • Scotia Private Canadian Value Pool55 • Scotia Private Canadian Mid Cap Pool61 • Scotia Private Canadian Growth Pool67 • Scotia Private Canadian Small Cap Pool
Foreign Equity Funds73 • Scotia Private U.S. Value Pool79 • Scotia Private U.S. Mid Cap Value Pool85 • Scotia Private U.S. Mid Cap Growth Pool91 • Scotia Private U.S. Large Cap Growth Pool97 • Scotia Private International Equity Pool105 • Scotia Private International Small to Mid Cap Value Pool114 • Scotia Private Emerging Markets Pool122 • Scotia Private Global Equity Pool129 • Scotia Private Global Real Estate Pool
The Pinnacle Portfolios137 • Pinnacle Income Portfolio142 • Pinnacle Balanced Portfolio148 • Pinnacle Growth Portfolio
153 Notes to the Financial Statements
165 Management’s Responsibility for Financial Reporting
166 Independent Auditors Report
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Scotia Private Short Term Income Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $5,714,689 $6,155,880 $8,748,759Cash 57,667 56,626 35,850Accrued investment income 178 198 287
5,772,534 6,212,704 8,784,896
LIABILITIESCurrent liabilitiesDistributions payable – 12 15
Net Assets attributable to holders ofredeemable units $5,772,534 $6,212,692 $8,784,881
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $5,682,212 $6,129,532 $8,712,213Series F Units $ 90,322 $ 83,160 $ 72,668
UNITS OUTSTANDINGPinnacle Series Units 568,221 612,953 871,221Series F Units 9,032 8,316 7,267
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 10.00 $ 10.00 $ 10.00Series F Units $ 10.00 $ 10.00 $ 10.00
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Interest for distribution purposes $ 56,613 $ 70,914
Net gain (loss) on investments 56,613 70,914
Securities lending 42 –
Total income (loss) 56,655 70,914
EXPENSESManagement fees (note 5) 547 395Administration fees (note 6) 78 –Harmonized Sales Tax/Goods and Services Tax 4,176 3,141Audit fees 175 1,564Independent Review Committee fees 16 834Custodian fees 1,365 1,452Filing fees 16,276 19,436Legal fees 85 3Unitholder reporting costs 6,639 3,690Unitholder administration and service fees 28,909 23,520
Total expenses 58,266 54,035Absorbed expenses (31,628) (22,513)
Net expenses 26,638 31,522
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 30,017 $ 39,392
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES
Pinnacle Series Units $ 29,388 $ 38,895Series F Units $ 629 $ 497
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT*
Pinnacle Series Units $ 0.06 $ 0.07Series F Units $ 0.06 $ 0.06
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 467,127 573,028Series F Units 10,937 7,853
* 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.
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
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 29,388 38,895Series F Units 629 497
30,017 39,392
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (29,388) (38,895)Series F Units (629) (497)
(30,017) (39,392)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 4,201,485 8,310,094Series F Units 157,298 42,750
Reinvested distributionsPinnacle Series Units 29,391 38,805Series F Units 521 497
Payments on redemptionPinnacle Series Units (4,678,196) (10,931,580)Series F Units (150,657) (32,755)
(440,158) (2,572,189)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units (447,320) (2,582,681)Series F Units 7,162 10,492
(440,158) (2,572,189)
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 5,682,212 6,129,532Series F Units 90,322 83,160
$ 5,772,534 $ 6,212,692
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 30,017 $ 39,392Adjustments For:
Purchases of non-derivative financial assets (20,790,915) (28,535,710)Proceeds from sale of non-derivative financial assets 21,232,106 31,128,588Accrued investment income 20 89
Net cash provided by (used in) operating activities 471,228 2,632,359
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 4,358,783 8,352,844Amounts paid on redemption of redeemable units (4,828,853) (10,964,335)Distributions to unitholders of redeemable units (117) (92)
Net cash provided by (used in) financing activities (470,187) (2,611,583)Net increase (decrease) in cash 1,041 20,776Cash (Bank Indebtedness) at beginning of period 56,626 35,850
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 57,667 $ 56,626
Interest received(1) 56,633 71,003
(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 (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
MONEY MARKET INSTRUMENTS – 99.0%Treasury Bills – 29.4%300,000 Government of Canada
0.00% due Jan. 08, 2015 299,922 299,945Province of Ontario
150,000 0.00% due Feb. 4, 2015 149,781 149,862800,000 0.00% due from Apr. 1, 2015 797,927 797,951
Province of Quebec150,000 0.00% due Jan. 30, 2015 149,828 149,881300,000 0.00% due Feb. 27, 2015 299,286 299,532
1,696,744 1,697,171
Promissory Notes – 24.5%670,000 Alberta Province
0.00% due Jan. 20, 2015 668,505 669,662160,000 Province of British Columbia
0.00% due Apr. 20, 2015 159,458 159,519Province of Nova Scotia
185,000 0.00% due Jan. 20, 2015 184,760 184,905400,000 0.00% due Mar. 30, 2015 398,987 398,999
1,411,710 1,413,085
Bankers’ Acceptances – 1.3%75,000 Royal Bank of Canada
0.00% due Dec. 18, 2015 74,051 74,053
Bearers’ Deposit Notes – 1.7%100,000 Manulife Bank of Canada
0.00% due Apr. 28, 2015 98,605 99,548
Commercial Paper – 5.6%125,000 Daimler Canada Finance Inc.
0.00% due Jan. 09, 2015 123,134 124,959100,000 Enbridge Inc.
0.00% due Jan. 05, 2015 99,698 99,986100,000 Wells Fargo Financial Canada Corporation
0.00% due Nov. 13, 2015 98,769 98,889
321,601 323,834
Short-Term Bonds – 36.5%100,000 407 International Inc. (Floating Rate)
3.88% due Jun. 16, 2015 101,146 101,306150,000 Bank of Montreal (Floating Rate)
1.40% due Jun. 19, 2015 150,000 150,068100,000 Bayerische Motoren Werke AG (Floating Rate)
2.64% due Aug. 10, 2015 100,739 101,765100,000 Caisse Centrale Desjardins (Floating Rate)
1.62% due Oct. 16, 2015 100,217 100,555150,000 Canadian Imperial Bank of Commerce (Floating Rate)
1.51% due Jul. 14, 2016 150,000 150,481150,000 CARDS II Trust (Floating Rate)
3.10% due Sep. 15, 2015 151,799 153,171100,000 GE Capital Canada Funding Company (Floating Rate)
4.65% due Feb. 11, 2015 100,369 102,163100,000 Golden Credit Card Trust (Floating Rate)
3.82% due May 15, 2015 100,923 101,409120,000 HSBC Bank USA NA (Floating Rate)
3.86% due May 21, 2015 121,109 121,621150,000 National Bank of Canada (Floating Rate)
1.38% due Sep. 11, 2015 150,000 150,108225,000 Ontario Hydro (Floating Rate)
0.00% due Aug. 06, 2015 223,523 223,523250,000 Quebec Hydro (Floating Rate)
0.00% due Feb. 15, 2015 249,689 249,688150,000 Royal Bank of Canada (Floating Rate)
1.36% due Sep. 18, 2015 150,000 150,073
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
MONEY MARKET INSTRUMENTS (cont’d)Short-Term Bonds (cont’d)150,000 Toronto-Dominion Bank, The (Floating Rate)
1.47% due Apr. 21, 2016 150,000 150,430100,000 Volkswagen AG (Floating Rate)
2.50% due Jun. 1, 2015 100,431 100,637
2,099,945 2,106,998
TOTAL INVESTMENT PORTFOLIO 5,702,656 5,714,689
OTHER ASSETS, LESS LIABILITIES – 1.0% 57,845
NET ASSETS – 100.0% 5,772,534
Instruments with a 0.00% stated interest rate are purchased at a discount to face value. Thediscount represents the implied effective interest.
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 (Continued)
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 12)There were no adjustments related to the measurement of the assets and liabilities at fair value on transition to IFRS and therefore,the Fund’s transition adjustments are limited to those disclosed in note 12.
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 fixed incomeinstruments.
Interest Rate Exposure* December 31, 2014 December 31, 2013 January 1, 2013
Less than 1 year $5,714,689 $6,155,880 $8,748,759
1-3 years – – –
3-5 years – – –
5-10 years – – –
> 10 years – – –
Total $5,714,689 $6,155,880 $8,748,759
* Earlier of maturity or interest reset date. Excludes cash.
ii) Currency risk
The Fund did not have significant currency risk exposure as at December 31, 2014, December 31, 2013 and January 1, 2013.
iii) Other price risk
The Fund’s significant market risks have been discussed in the previous sections. As at December 31, 2014, December 31, 2013 andJanuary 1, 2013, the investments of this Fund were not subject to significant other price risk as the Fund did not hold any equities orcommodities.
iv) Credit risk
The table below summarizes the credit ratings of any fixed income securities and preferred securities, excluding cash and moneymarket instruments, held by the Fund.
December 31, 2014
Percentage ofTotal Money Market
Instruments (%)Percentage ofNet Assets (%)
Short-Term Rating
R1-High 21.1 20.8
R1-Middle 38.1 37.8
R1-Low 3.9 3.9
Bond Rating
A- to AAA+ 36.9 36.5
Total 100.0 99.0
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The accompanying notes are an integral part of these financial statements.
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Scotia Private Short Term Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $ – $ – $12 $ – $15
Redeemable units 5,772,534 – 6,212,692 – 8,784,881 –
$5,772,534 $ – $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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31,2014
December 31,2013
January 1,2013
Treasury Bills 29.4 13.3 20.4
Promissory Notes 24.5 3.5 26.5
Bankers’ Acceptance 1.3 12.4 3.4
Bearers’ Deposit Notes 1.7 2.4 1.4
Commercial Paper 5.6 6.7 15.3
Short-Term Bonds 36.5 60.8 32.5
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Money Market Instruments $ – $5,714,689 $ – $5,714,689
December 31, 2013 Level 1 Level 2 Level 3 Total
Money Market Instruments $ – $6,155,880 $ – $6,155,880
January 1, 2013 Level 1 Level 2 Level 3 Total
Money Market Instruments $ – $8,748,759 $ – $8,748,759
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
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The accompanying notes are an integral part of these financial statements.
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Scotia Private Short Term Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Series A 10.00 10.00 10.00 10.00
Series F 10.00 10.00 10.00 10.00
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Scotia Private Income Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $327,070,742 $291,921,877 $297,436,458Cash 5,143,571 304,293 105,090Accrued investment income 1,926,976 1,774,977 1,618,879Subscriptions receivable 418,112 177,761 21,602
334,559,401 294,178,908 299,182,029
LIABILITIESCurrent liabilitiesPayable for securities purchased – 2,913,854 –Redemptions payable 112,372 771,294 109,899
112,372 3,685,148 109,899
Net Assets attributable to holders ofredeemable units $334,447,029 $290,493,760 $299,072,130
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $299,668,608 $256,065,876 $251,509,501Series F Units $ 2,793,881 $ 4,957,890 $ 19,368,089Series I Units $ 31,984,540 $ 29,469,994 $ 28,194,540
UNITS OUTSTANDINGPinnacle Series Units 27,579,029 24,308,721 21,510,621Series F Units 250,430 458,770 1,607,255Series I Units 2,933,224 2,787,803 2,405,181
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 10.87 $ 10.53 $ 11.69Series F Units $ 11.16 $ 10.81 $ 12.05Series I Units $ 10.90 $ 10.57 $ 11.72
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Interest for distribution purposes 10,163,533 9,890,029Net realized gain (loss) on non-derivative financial assets (2,795,897) 16,931,405Net gain (loss) foreign exchange 2,868 –Change in unrealized appreciation (depreciation) of non-
derivative financial assets 12,434,854 (29,198,594)
Net gain (loss) on investments 19,805,358 (2,377,160)Securities lending 28,231 46,690Other income 2,568 514
Total income (loss) 19,836,157 (2,329,956)
EXPENSESManagement fees (note 5) 23,246 68,391Administration fees (note 6) 78,620 –Harmonized Sales Tax/Goods and Services Tax 21,299 19,393Audit fees 7,625 7,974Independent Review Committee fees 836 1,738Custodian fees 2,488 6,334Filing fees 12,146 22,456Legal fees 3,890 522Unitholder reporting costs 12,292 7,046Unitholder administration and service fees 88,788 141,805
Total expenses 251,230 275,659Absorbed expenses (2,924) –
Net expenses 248,306 275,659
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $19,587,851 $ (2,605,615)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $17,434,685 $ (2,257,852)Series F Units $ 191,850 $ (120,305)Series I Units $ 1,961,316 $ (227,458)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 0.66 $ (0.10)Series F Units $ 0.64 $ (0.15)Series I Units $ 0.67 $ (0.09)
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 26,264,225 22,184,104Series F Units 300,617 819,640Series I Units 2,908,067 2,518,166
* 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.
The accompanying notes are an integral part of these financial statements.
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Scotia Private Income Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 17,434,685 (2,257,852)Series F Units 191,850 (120,305)Series I Units 1,961,316 (227,458)
19,587,851 (2,605,615)
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (8,850,932) (8,525,710)Series F Units (70,622) (208,881)Series I Units (993,539) (990,578)
From realized gainPinnacle Series Units – (14,965,055)Series F Units – (326,036)Series I Units – (1,714,708)
(9,915,093) (26,730,968)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 75,062,528 60,522,281Series F Units 141,335 1,033,788Series I Units 2,526,188 2,789,513
Reinvested distributionsPinnacle Series Units 8,810,499 23,397,457Series F Units 61,052 441,263Series I Units 993,539 2,705,286
Payments on redemptionPinnacle Series Units (48,854,048) (53,614,746)Series F Units (2,487,624) (15,230,028)Series I Units (1,972,958) (1,286,601)
34,280,511 20,758,213
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 43,602,732 4,556,375Series F Units (2,164,009) (14,410,199)Series I Units 2,514,546 1,275,454
43,953,269 (8,578,370)
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 299,668,608 256,065,876Series F Units 2,793,881 4,957,890Series I Units 31,984,540 29,469,994
$334,447,029 $290,493,760
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 19,587,851 $ (2,605,615)Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets 2,795,897 (16,931,405)
Net realized (gain) loss foreign exchange on cash (2,868) –Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (12,434,854) 29,198,594Purchases of non-derivative financial assets (327,709,073) (638,281,791)Proceeds from sale of non-derivative financial assets 299,285,311 634,443,037Accrued investment income (151,999) (156,098)
Net cash provided by (used in) operating activities (18,629,735) 5,666,722
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 77,489,700 64,189,423Amounts paid on redemption of redeemable units (53,973,552) (69,469,980)Distributions to unitholders of redeemable units (50,003) (186,962)
Net cash provided by (used in) financing activities 23,466,145 (5,467,519)Net realized (gain) loss foreign exchange on cash 2,868 –Net increase (decrease) in cash 4,836,410 199,203Cash (Bank Indebtedness) at beginning of period 304,293 105,090
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 5,143,571 $ 304,293
Interest received(1) 10,011,534 9,733,931
(1) Classified as operating items.
Portfolio Advisor: Beutel Goodman & Company Ltd.
The accompanying notes are an integral part of these financial statements.
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Scotia Private Income Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS – 97.8%Federal Bonds – 39.2%
Canada Housing Trust No. 15,915,000 3.15% due Jun. 15, 2015 6,103,635 5,971,223
28,445,000 2.45% due Dec. 15, 2015 29,113,280 28,820,19214,395,000 2.75% due Dec. 15, 2015 14,723,334 14,624,72418,025,000 2.75% due Jun. 15, 2016 18,510,196 18,449,93510,810,000 1.85% due Dec. 15, 2016 10,951,290 10,956,88220,285,000 2.05% due Jun. 15, 2017 20,627,423 20,680,7645,340,000 1.70% due Dec. 15, 2017 5,367,928 5,397,9108,895,000 2.05% due Jun. 15, 2018 9,021,323 9,083,6745,200,000 2.35% due Dec. 15, 2018 5,322,000 5,371,250
Government of Canada6,160,000 1.50% due Aug. 1, 2015 6,200,524 6,177,9714,755,000 0.88% due Feb. 14, 2017 5,135,175 5,525,525
131,076,108 131,060,050
Provincial Bonds – 10.1%Province of Alberta
3,615,000 1.85% due Sep. 1, 2016 3,667,063 3,658,869325,000 2.55% due Dec. 15, 2022 325,450 332,529660,000 3.50% due Jun. 1, 2031 677,207 705,177
Province of British Columbia1,220,000 2.10% due May 18, 2016 1,342,229 1,445,4391,900,000 1.20% due Apr. 25, 2017 2,042,991 2,214,9061,820,000 2.25% due Mar. 1, 2019 1,854,616 1,871,1262,245,000 2.85% due Jun. 18, 2025 2,265,430 2,303,2221,125,000 5.70% due Jun. 18, 2029 1,474,830 1,501,0521,325,000 6.35% due Jun. 18, 2031 1,862,310 1,907,350
100,000 5.40% due Jun. 18, 2035 130,500 134,69835,000 4.95% due Jun. 18, 2040 42,886 45,951
Province of Manitoba1,750,000 5.20% due Dec. 3, 2015 1,888,476 1,815,1261,670,000 1.85% due Jun. 1, 2017 1,690,207 1,693,3763,830,000 3.30% due Jun. 2, 2024 3,991,098 4,067,942
590,000 4.40% due Sep. 5, 2025 667,649 682,2421,090,000 3.25% due Sep. 5, 2029 1,099,873 1,127,436
650,000 5.70% due Mar. 5, 2037 875,370 903,040435,000 4.60% due Mar. 5, 2038 497,845 531,78640,000 4.40% due Mar. 5, 2042 47,416 48,239
2,900,000 4.05% due Sep. 5, 2045 3,045,258 3,350,109700,000 4.70% due Mar. 5, 2050 865,810 912,570
1,620,000 3.15% due Sep. 5, 2052 1,428,110 1,586,562Province of New Brunswick
1 6.47% due Nov. 30, 2027 1 1Province of Saskatchewan
300,000 4.25% due Dec. 3, 2015 317,910 308,62970,000 3.20% due Jun. 3, 2024 72,752 74,393
250,000 4.75% due Jun. 1, 2040 279,744 319,006160,000 3.90% due Jun. 2, 2045 165,491 182,871
32,618,522 33,723,647
Corporate Bonds – 48.5%Alliance Pipeline LP
163,008 5.55% due Dec. 31, 2023 163,008 179,512993,032 7.22% due Dec. 31, 2025 993,033 1,198,102
AltaGas Ltd. (callable)620,000 5.16% due Jan. 13, 2044-(Jul. 13, 2043) 619,250 667,999
AltaLink LP145,000 2.98% due Nov. 28, 2022 145,457 148,978300,000 5.25% due Sep. 22, 2036 363,000 367,138
2,150,000 5.38% due Mar. 26, 2040 2,703,300 2,702,6521,085,000 4.87% due Nov. 15, 2040 1,250,080 1,281,090
500,000 4.46% due Nov. 8, 2041 555,500 556,8331,875,000 3.99% due Jun. 30, 2042 1,810,188 1,946,824
500,000 4.92% due Sep. 17, 2043 549,120 597,674
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)1,865,000 4.45% due Jul. 11, 2053 1,942,356 2,078,495
Bank of Montreal770,000 3.93% due Apr. 27, 2015 806,960 776,078
1,100,000 3.10% due Mar. 10, 2016 1,129,789 1,119,768300,000 3.49% due Jun. 10, 2016 310,470 307,917
Bank of Nova Scotia, The2,385,000 2.25% due May 8, 2015 2,416,049 2,392,3871,300,000 3.61% due Feb. 22, 2016 1,343,030 1,330,0443,985,000 1.80% due May 9, 2016 3,995,749 3,995,6613,100,000 2.60% due Feb. 27, 2017 3,169,185 3,158,284
Canadian Imperial Bank of Commerce875,000 3.10% due Mar. 2, 2015 879,176 877,509
8,850,000 1.75% due Jun. 1, 2016 8,866,693 8,869,141Canadian Utilities Limited
1,185,000 3.86% due Nov. 14, 2052 1,165,191 1,183,648CIBC Capital Trust
2,325,000 2.20% due May 22, 2015 2,354,211 2,332,4511,120,000 3.40% due Jan. 14, 2016 1,154,596 1,141,261
CU Inc.380,000 4.80% due Nov. 22, 2021 415,201 438,463625,000 5.90% due Nov. 20, 2034 796,275 815,894500,000 5.03% due Nov. 20, 2036 589,300 595,489830,000 5.58% due May 26, 2038 1,003,279 1,065,758
1,312,000 4.54% due Oct. 24, 2041 1,312,000 1,480,642790,000 3.81% due Sep. 10, 2042 791,975 793,329370,000 4.72% due Mar. 9, 2043 407,650 430,160
1,800,000 4.95% due Nov. 18, 2050 2,095,100 2,179,042Cu Inc. (callable)
875,000 4.56% due Nov. 7, 2053-(May 7, 2053) 954,466 994,821Duke Energy Corporation
225,000 8.50% due Nov. 23, 2015 259,425 237,983Enbridge Gas Distribution Inc.
720,000 4.77% due Dec. 17, 2021 837,937 824,255315,000 3.15% due Aug. 22, 2024 314,115 321,097700,000 6.90% due Nov. 15, 2032 979,700 988,158930,000 6.16% due Dec. 16, 2033 1,240,508 1,224,634
Enbridge Inc.1,490,000 1.85% due Apr. 24, 2017 1,491,897 1,497,3452,235,000 4.57% due Mar. 11, 2044 2,299,451 2,203,3981,425,000 4.95% due Nov. 22, 2050 1,759,006 1,707,180
Enbridge Income Fund1,290,000 3.95% due Nov. 19, 2024 1,290,000 1,321,795
Enbridge Pipelines Inc.1,975,000 2.93% due Sep. 8, 2015 2,020,425 1,995,4561,365,000 2.93% due Nov. 30, 2022 1,384,599 1,384,427
550,000 6.35% due Nov. 17, 2023 668,785 691,6751,000,000 5.33% due Apr. 6, 2040 1,246,800 1,223,187
350,000 4.55% due Aug. 17, 2043 381,675 388,432ENMAX Corporation (callable)
455,000 3.81% due Dec. 5, 2024-(Sep. 5, 2024) 455,000 461,436EPCOR Utilities Inc.
575,000 6.75% due Mar. 22, 2016 633,075 610,018300,000 6.80% due Jun. 28, 2029 405,450 408,668
1,525,000 5.65% due Nov. 16, 2035 1,744,511 1,911,785500,000 5.75% due Nov. 24, 2039 639,050 647,745
Export Development Canada1,360,000 1.00% due May 15, 2017 1,473,927 1,580,454
FortisAlberta Inc.500,000 6.22% due Oct. 31, 2034 671,000 674,123700,000 5.40% due Apr. 21, 2036 866,560 867,120500,000 5.37% due Oct. 30, 2039 622,000 625,919900,000 4.54% due Oct. 18, 2041 986,650 1,014,442500,000 4.80% due Oct. 27, 2050 597,600 587,639
Portfolio Advisor: Beutel Goodman & Company Ltd.
The accompanying notes are an integral part of these financial statements.
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Scotia Private Income Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)
FortisAlberta Inc. (callable)365,000 4.85% due Sep. 11, 2043-(Mar. 11, 2043) 364,599 431,962
FortisAlberta, Inc.548,000 5.85% due Apr. 15, 2038 728,237 723,327
FortisBC Energy Inc.75,000 6.95% due Sep. 21, 2029 106,275 104,493
FortisBC Inc.500,000 5.00% due Nov. 24, 2050 610,750 608,084
Greater Toronto Airports Authority1,800,000 5.00% due Jun. 1, 2015 1,906,887 1,826,819
700,000 4.70% due Feb. 15, 2016 742,414 724,858Hydro One Inc.
2,725,000 2.95% due Sep. 11, 2015 2,805,990 2,755,170785,000 4.64% due Mar. 3, 2016 820,275 813,640
2,205,000 3.20% due Jan. 13, 2022 2,318,892 2,322,1711,530,000 6.35% due Jan. 31, 2034 2,058,942 2,090,2011,000,000 4.89% due Mar. 13, 2037 1,159,350 1,175,8435,505,000 5.49% due Jul. 16, 2040 6,987,197 7,065,5542,500,000 5.00% due Oct. 19, 2046 3,068,500 3,046,004
Hydro Ottawa Holding Inc.1,600,000 4.93% due Feb. 9, 2015 1,679,800 1,604,801
Inter Pipeline Fund425,000 4.90% due Feb. 3, 2020 480,913 473,907203,000 4.97% due Feb. 2, 2021 233,044 227,086500,000 3.78% due May 30, 2022 529,500 520,966
Inter Pipeline Ltd. (callable)1,275,000 4.64% due May 30, 2044-(Nov. 30, 2043) 1,284,798 1,316,441
Lower Mattagami Energy Limited Partnership1,250,000 5.14% due May 18, 2041 1,451,915 1,521,2351,000,000 4.18% due Feb. 23, 2046 1,054,800 1,059,372
NAV Canada500,000 7.40% due Jun. 1, 2027 732,750 718,038
NOVA Gas Transmission Ltd.1,465,000 12.20% due Feb. 28, 2016 1,872,710 1,634,821
Nova Scotia Power Inc.500,000 8.40% due Oct. 23, 2015 577,750 525,322
1,050,000 6.95% due Aug. 25, 2033 1,389,575 1,481,451200,000 5.67% due Nov. 14, 2035 253,600 250,854
3,520,000 5.61% due Jun. 15, 2040 4,532,352 4,472,421570,000 4.15% due Mar. 6, 2042 558,828 592,571
Pembina Pipeline Corp.1,410,000 4.81% due Mar. 25, 2044 1,437,864 1,440,169
Royal Bank of Canada700,000 2.05% due Jan. 13, 2015 706,790 700,044
3,600,000 3.36% due Jan. 11, 2016 3,714,152 3,666,2711,000,000 3.03% due Jul. 26, 2016 1,029,100 1,021,1725,225,000 3.66% due Jan. 25, 2017 5,482,164 5,427,367
Terasen Gas Inc.100,000 6.50% due May 1, 2034 138,000 137,758500,000 5.90% due Feb. 26, 2035 657,250 651,329500,000 5.80% due May 13, 2038 655,625 655,133
Toronto Hydro Corporation2,600,000 5.54% due May 21, 2040 3,209,783 3,348,447
Toronto Hydro Corporation (callable)262,000 3.96% due Apr. 9, 2063-(Oct. 9, 2062) 252,568 265,608
TransCanada Corporation1,200,000 3.65% due Nov. 15, 2021 1,271,040 1,276,202
TransCanada PipeLines Limited380,000 11.80% due Nov. 20, 2020 614,612 564,658
1,390,000 7.90% due Apr. 15, 2027 1,859,507 1,930,8891,355,000 6.28% due May 26, 2028 1,641,545 1,696,254
950,000 4.55% due Nov. 15, 2041 1,000,938 1,012,331
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)
TransCanada PipeLines Ltd.2,675,000 8.29% due Feb. 5, 2026 3,951,908 3,852,820
500,000 7.31% due Jan. 15, 2027 693,000 674,0241,300,000 8.21% due Apr. 25, 2030 1,940,640 1,883,302
TransCanada PipeLines Ltd. (callable)175,000 3.69% due Jul. 19, 2023-(Apr. 19, 2023) 182,763 184,401
Union Gas Limited1,500,000 4.64% due Jun. 30, 2016 1,601,580 1,564,7321,000,000 4.85% due Apr. 25, 2022 1,165,500 1,146,082
250,000 8.65% due Nov. 10, 2025 365,975 369,838440,000 5.46% due Sep. 11, 2036 545,380 540,693
2,500,000 5.20% due Jul. 23, 2040 3,090,250 3,026,438Union Gas Ltd. (callable)
2,095,000 4.88% due Jun. 21, 2041-(Dec. 21, 2040) 2,480,271 2,447,987Vancouver International Airport Authority
500,000 5.02% due Nov. 13, 2015 543,100 515,276Westcoast Energy Inc.
1,715,000 3.28% due Jan. 15, 2016 1,782,641 1,741,823500,000 3.88% due Oct. 28, 2021 540,100 532,299800,000 8.85% due Jul. 21, 2025 1,109,920 1,157,275
1,715,000 7.30% due Dec. 18, 2026 2,360,119 2,305,337675,000 6.75% due Dec. 15, 2027 817,924 874,021400,000 7.15% due Mar. 20, 2031 516,120 551,962
1,475,000 4.79% due Oct. 28, 2041 1,650,089 1,636,276
161,638,644 162,287,045
TOTAL INVESTMENT PORTFOLIO 325,333,274 327,070,742
OTHER ASSETS, LESS LIABILITIES – 2.2% 7,376,287
NET ASSETS – 100.0% 334,447,029
Portfolio Advisor: Beutel Goodman & Company Ltd.
The accompanying notes are an integral part of these financial statements.
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Scotia Private Income Pool (Continued)
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 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 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
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) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $(2,506,046)
Revaluation of Investments at FVTPL (99,569)
Increase (decrease) in net assets attributable to holders of redeemable units $(2,605,615)
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
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 fixed incomeinstruments.
Interest Rate Exposure* December 31, 2014 December 31, 2013 January 1, 2013
Less than 1 year $ 74,257,161 $ 50,122,588 $ 23,155,408
1-3 years 110,228,185 142,335,297 31,972,794
3-5 years 16,326,049 – 86,832,319
5-10 years 17,494,274 11,708,137 24,746,019
> 10 years 108,765,073 83,332,038 127,655,932
Total $327,070,742 $287,498,060 $294,362,472
* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying Funds, and preferred shares where applicable.
As at December 31, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curveand all other variables held constant, net assets attributable to holders of redeemable units would have decreased or increased,respectively, by $4,998,858 or approximately 1.5% (December 31, 2013 – $3,625,459 or approximately 1.2%, January 1, 2013 – $5,976,351or approximately 2.0%). In practice, actual results may differ from this sensitivity analysis and the difference could be material.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables also
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The accompanying notes are an integral part of these financial statements.
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Scotia Private Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
illustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 10,766,324 3.2 1,076,632 0.3
iii) Other price risk
The Fund’s significant market risks have been discussed in the previous sections. As at December 31, 2014, December 31, 2013 andJanuary 1, 2013, the investments of this Fund were not subject to significant other price risk as the Fund did not hold any equities orcommodities.
iv) Credit risk
The table below summarizes the credit ratings of any fixed income securities and preferred securities, excluding cash and moneymarket instruments, held by the Fund.
December 31, 2014 December 31, 2013 December 31, 2012
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Bond Rating
A- to AAA+ 98.3 96.2 99.4 98.0 93.1 91.6
B- to BBB+ 1.7 1.6 0.6 0.5 6.9 6.8
Total 100.0 97.8 100.0 98.5 100.0 98.4
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $112,372 $ – $3,685,148 $ – $109,899
Redeemable units 334,447,029 – 290,493,760 – 299,072,130 –
$334,447,029 $112,372 $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.
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The accompanying notes are an integral part of these financial statements.
13
Scotia Private Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Federal Bonds 39.2 48.5 33.0
Provincial Bonds 10.1 4.2 11.4
Municipal Bonds – – 0.7
Corporate Bonds 48.5 46.3 48.6
Mortgage-Backed Securities – – 4.7
Money Market Instruments – 1.5 1.0
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Bond and Debenture Instruments $ – $327,070,742 $ – $327,070,742
December 31, 2013 Level 1 Level 2 Level 3 Total
Bond and Debenture Instruments $ – $287,498,060 $ – $287,498,060
Money Market Instruments – 4,423,817 – 4,423,817
$ – $291,921,877 $ – $291,921,877
January 1, 2013 Level 1 Level 2 Level 3 Total
Bond and Debenture Instruments $ – $294,362,472 $ – $294,362,472
Money Market Instruments – 3,073,986 – 3,073,986
$ – $297,436,458 $ – $297,436,458
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 10.87 10.87 10.53 10.53
Series F 11.16 11.16 10.81 10.81
Series I 10.90 10.90 10.57 10.57
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The accompanying notes are an integral part of these financial statements.
14
Scotia Private High Yield Income Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $897,466,049 $748,931,300 $569,946,010Unrealized gain on currency
forward contracts 3,628,088 – –Cash 13,172 7,548 98,148Accrued investment income 11,956,462 10,541,363 8,396,798Subscriptions receivable 790,973 521,624 170,326
913,854,744 760,001,835 578,611,282
LIABILITIESCurrent liabilitiesPayable for securities purchased – – 6,079,586Redemptions payable 293,508 321,214 156,211Unrealized loss on currency forward
contracts 3,059,918 – –
3,353,426 321,214 6,235,797
Net Assets attributable to holders ofredeemable units $910,501,318 $759,680,621 $572,375,485
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $137,196,265 $124,683,620 $120,492,992Series F Units $ 15,037,425 $ 13,233,849 $ 11,195,181Series I Units $472,739,554 $327,520,685 $214,668,154Series M Units $285,528,074 $294,242,467 $226,019,158
UNITS OUTSTANDINGPinnacle Series Units 14,556,998 13,256,227 12,896,125Series F Units 1,536,581 1,355,346 1,154,540Series I Units 49,991,293 34,719,535 22,913,212Series M Units 30,113,831 31,104,735 24,060,230
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 9.42 $ 9.40 $ 9.34Series F Units $ 9.79 $ 9.76 $ 9.69Series I Units $ 9.46 $ 9.43 $ 9.37Series M Units $ 9.48 $ 9.46 $ 9.39
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends 3,542,798 3,285,646Interest for distribution purposes 47,118,452 42,830,095Net realized gain (loss) on non-derivative financial
assets 11,041,015 3,555,823Net realized gain (loss) on currency forwards 3,847,390 –Net gain (loss) foreign exchange 832,640 492,487Change in unrealized appreciation (depreciation) of
non-derivative financial assets (17,877,915) (1,784,397)Change in unrealized appreciation (depreciation) of
currency forwards 568,170 –
Net gain (loss) on investments 49,072,550 48,379,654Securities lending 270,125 83,569Other income 72 –
Total income (loss) 49,342,747 48,463,223
EXPENSESManagement fees (note 5) 984,098 916,011Administration fees (note 6) 137,986 –Harmonized Sales Tax/Goods and Services Tax 117,794 99,810Audit fees 21,685 19,726Independent Review Committee fees 2,288 784Custodian fees 9,385 10,647Filing fees 11,930 18,345Legal fees 10,640 264Unitholder reporting costs 16,045 6,947Unitholder administration and service fees 125,058 222,258Overdraft charges 1,567 625Foreign withholding taxes/tax reclaims 531,420 492,847Transaction costs 40,913 28,962
Total expenses 2,010,809 1,817,226
Net expenses 2,010,809 1,817,226
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 47,331,938 $46,645,997
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 7,595,579 $ 8,498,232Series F Units $ 690,519 $ 753,968Series I Units $ 21,780,023 $19,551,633Series M Units $ 17,265,817 $17,842,164
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 0.55 $ 0.67Series F Units $ 0.48 $ 0.61Series I Units $ 0.50 $ 0.66Series M Units $ 0.58 $ 0.62
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 13,925,659 12,750,537Series F Units 1,437,846 1,246,156Series I Units 43,498,472 29,835,654Series M Units 29,775,122 28,960,594
* 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: Guardian Capital LP
The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS FROMOPERATIONS
Pinnacle Series Units 7,595,579 8,498,232Series F Units 690,519 753,968Series I Units 21,780,023 19,551,633Series M Units 17,265,817 17,842,164
47,331,938 46,645,997
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLEUNITS
From net investment incomePinnacle Series Units (7,596,712) (7,593,831)Series F Units (704,970) (685,597)Series I Units (24,739,612) (18,620,259)Series M Units (15,856,516) (16,995,432)
From realized gainPinnacle Series Units (54,579) –Series F Units (6,019) –Series I Units (186,098) –Series M Units (112,861) –
(49,257,367) (43,895,119)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 25,188,166 20,866,530Series F Units 2,504,752 2,357,239Series I Units 154,153,323 110,674,147Series M Units 106,052,455 136,510,542
Reinvested distributionsPinnacle Series Units 7,625,650 7,559,361Series F Units 164,578 160,676Series I Units 24,925,710 18,620,259Series M Units 11,919,958 11,844,253
Payments on redemptionPinnacle Series Units (20,245,459) (25,139,664)Series F Units (845,284) (547,618)Series I Units (30,714,477) (17,373,249)Series M Units (127,983,246) (80,978,218)
152,746,126 184,554,258
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 12,512,645 4,190,628Series F Units 1,803,576 2,038,668Series I Units 145,218,869 112,852,531Series M Units (8,714,393) 68,223,309
150,820,697 187,305,136
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – END OF PERIOD
Pinnacle Series Units 137,196,265 124,683,620Series F Units 15,037,425 13,233,849Series I Units 472,739,554 327,520,685Series M Units 285,528,074 294,242,467
$ 910,501,318 $759,680,621
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to
holders of redeemable units $ 47,331,938 $ 46,645,997Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (11,041,015) (3,555,823)
Net realized (gain) loss foreign exchange on cash (832,640) (492,487)Change in unrealized (appreciation) depreciation
on sale of non-derivative financial assets 17,877,915 1,784,397Change in unrealized (appreciation) depreciation
of forward currency contracts (568,170) –Purchases of non-derivative financial assets (1,176,216,994) (997,689,836)Proceeds from sale of non-derivative financial
assets 1,020,804,432 814,367,425Transaction costs 40,913 28,962Accrued investment income (1,415,099) (2,144,565)
Net cash provided by (used in) operating activities (104,018,720) (141,055,930)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 287,629,347 270,057,159Amounts paid on redemption of redeemable units (179,816,172) (123,873,746)Distributions to unitholders of redeemable units (4,621,471) (5,710,570)
Net cash provided by (used in) financing activities 103,191,704 140,472,843Net realized (gain) loss foreign exchange on cash 832,640 492,487Net increase (decrease) in cash (827,016) (583,087)Cash (Bank Indebtedness) at beginning of period 7,548 98,148
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 13,172 $ 7,548
Interest received(1) 44,861,594 41,589,363Dividends received, net of withholding taxes(1) 3,260,849 2,462,267
(1) Classified as operating items.
Portfolio Advisor: Guardian Capital LP
The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS – 82.1%Federal Bonds – 4.2%
Canada Housing Trust No. 15,000,000 2.90% due Jun. 15, 2024 5,068,200 5,276,103
Government of Canada5,000,000 1.25% due Sep. 1, 2018 4,925,750 5,012,982
10,000,000 1.75% due Mar. 1, 2019 10,037,200 10,205,6278,950,000 1.50% due Jun. 1, 2023 8,179,210 8,815,8943,500,000 2.50% due Jun. 1, 2024 3,659,119 3,715,5254,000,000 4.00% due Jun. 1, 2041 4,745,960 5,307,708
36,615,439 38,333,839
Provincial Bonds – 5.0%Province of New Brunswick
13,500,000 4.50% due Feb. 4, 2015 13,892,850 13,534,792Province of Ontario
21,000,000 4.40% due Mar. 8, 2016 22,365,300 21,802,81710,000,000 3.20% due Sep. 8, 2016 10,486,300 10,335,496
46,744,450 45,673,105
Corporate Bonds – 72.9%ACCO Brands Corp.
1,400,000 6.75% due Apr. 30, 2020 1,383,755 1,707,490Ainsworth Lumber Ltd. (callable)
1,800,000 7.50% due Dec. 15, 2017-(2014) 1,806,757 2,162,005AK Steel Corporation (callable)
8,070,000 7.63% due May 15, 2020-(2015) 8,080,863 8,796,4592,000,000 8.38% due Apr. 1, 2022-(2017) 1,783,330 2,147,406
AK Steel Corporation (callable)500,000 7.63% due Oct. 1, 2021-(2017) 548,496 535,279
Alliance Grain Traders Inc.12,000,000 9.00% due Feb. 14, 2018 11,949,375 12,605,000
Allied Nevada Gold Corporation (callable)13,750,000 8.75% due Jun. 01, 2019-(2016) 13,443,760 5,645,888
Amkor Technology Inc.2,500,000 6.38% due Oct. 1, 2022 2,618,653 2,821,777
Armstrong Energy, Inc. (callable)11,875,000 11.75% due Dec. 15, 2019-(2016) 11,296,430 14,528,512
Athabasca Oil Corporation (callable)18,500,000 7.50% due Nov. 19, 2017-(2014) 18,382,500 14,880,938
Bank of Montreal10,000,000 2.24% due Dec. 11, 2017 10,060,400 10,107,928
Bank of Nova Scotia, The (callable)11,000,000 3.04% due Oct. 18, 2024-(2019) 10,837,600 11,276,455
Bank of Nova Scotia, The1,300,000 2.40% due Oct. 28, 2019 1,299,701 1,310,136
Banro Corporation (callable)7,750,000 10.00% due Mar. 1, 2017-(2014) 7,747,676 6,385,633
Baytex Energy Corporation1,000,000 5.13% due Jun. 1, 2021 1,098,378 993,675
Baytex Energy Corporation (callable)6,000,000 6.63% due Jul. 19, 2022-(2017) 6,000,000 5,471,250
Bombardier Inc.2,000,000 7.35% due Dec. 22, 2026 2,025,000 2,108,333
Bristow Group, Inc.1,850,000 6.25% due Oct. 15, 2022-(2017) 1,814,757 2,150,633
Cameco Corporation (callable)4,000,000 4.19% due Jun. 24, 2024-(Mar. 24, 2024) 3,998,400 4,124,148
Canadian Energy Services & TechnologyCorporation (callable)
4,500,000 7.38% due Apr. 17, 2020-(Apr. 17, 2017) 4,500,000 4,348,125Canadian Imperial Bank of Commerce
10,000,000 2.22% due Mar. 7, 2018 9,673,000 10,091,825Canadian International Oil Corporation*
6,796,908 11.00% due May 2, 2016 6,699,409 6,796,908
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)
Cascades, Inc.10,000,000 5.50% due Jul. 15, 2021 10,000,000 9,734,167
CCO Holdings LLC/CCO Holdings CapitalCorporation (callable)
2,350,000 5.25% due Sep. 30, 2022-(Sep. 30, 2017) 2,331,399 2,738,649Centric Health Corp. (callable)
11,500,000 8.63% due Apr. 18, 2018-(Apr. 18, 2016) 11,470,000 9,775,000CenturyLink, Inc.
4,850,000 5.80% due Mar. 15, 2022 5,122,778 5,853,911CHC Helicopter SA (callable)
4,230,000 9.25% due Oct. 15, 2020 -(2015) 4,151,799 4,798,451Citigroup Inc.
9,000,000 4.75% due Feb. 15, 2015 10,218,796 10,465,359Cng Holdings, Inc. (callable)
1,200,000 9.38% due May 15, 2020-(2016) 1,194,303 924,336Connacher Oil & Gas Limited (callable)
3,000,000 8.75% due Aug. 1, 2018-(2015) 2,282,500 1,050,000Connacher Oil and Gas Limited (callable)
6,850,000 8.50% due Aug. 1, 2019-(2015) 6,665,288 2,921,405Cott Beverage Inc. (callable)
6,350,000 6.75% due Jan. 1, 2020-(2017) 7,240,499 7,433,634Data & Audio-Visual Enterprises Holdings Inc.*(callable)
6,507,000 9.5% due Apr. 29, 2018-(2014) 6,457,333 4,515,8583,833,737 15.0% due Sep. 25, 2018-(Jul. 22, 2013) 3,578,510 –
Data & Audio-Visual Enterprises Holdings Inc.*1,558,773 15.5% due Feb. 16, 2015 1,261,435 123,143
DISH DBS Corporation2,500,000 7.75% due May 31, 2015 2,646,852 2,966,3171,000,000 4.63% due Jul. 15, 2017 1,178,476 1,211,2685,000,000 4.25% due Apr. 1, 2018 5,013,554 5,971,9162,350,000 5.00% due Mar. 15, 2023 2,381,402 2,665,806
Dollar General Corporation1,300,000 3.25% due Apr. 15, 2023 1,287,404 1,385,246
DPL Inc. (callable)9,500,000 7.25% due Oct. 15, 2021-(Jul. 15) 10,495,991 11,422,270
El Paso Corporation900,000 7.25% due Jun. 1, 2018 919,889 1,180,549
Fairfax Financial Holdings Limited13,117,000 7.38% due Apr. 15, 2018 15,750,406 17,215,8911,500,000 6.40% due May 25, 2021 1,502,020 1,689,7412,000,000 7.75% due Jul. 15, 2037 1,943,339 2,757,166
First Quantum Minerals Ltd. (callable)4,015,000 6.75% due Feb. 15, 2020-(2017) 3,695,481 4,228,4004,015,000 7.00% due Feb. 15, 2021-(2018) 3,695,481 4,158,509
Fly Leasing Ltd. (callable)7,300,000 6.75% due Dec. 15, 2020-(2016) 8,251,049 8,598,700
Ford Credit Canada Limited5,000,000 2.63% due Nov. 21, 2016 5,044,905 5,058,7328,000,000 4.88% due Feb. 8, 2017 8,592,800 8,456,819
Frontier Communications Corporation1,600,000 8.75% due Apr. 15, 2022 1,655,293 2,107,462
Goldman Sachs Group, Inc.6,500,000 3.38% due Feb. 1, 2018 6,491,420 6,705,903
Golf Town Canada Inc. (callable)12,435,000 10.50% due Jul. 24, 2018-(2015) 12,458,750 11,331,394
Great-West Lifeco Finance (Delaware) LP6,000,000 5.69% due Jun. 21, 2017 6,567,600 6,534,042
Gulfmark Offshore Inc.2,000,000 6.38% due Mar. 15, 2017 1,971,201 1,791,041
Harvest Operations Corp.1,000,000 6.88% due Oct. 1, 2017 1,134,649 1,128,293
Portfolio Advisor: Guardian Capital LP
The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)
Hertz Corp, The (callable)5,706,000 6.25% due Oct. 15, 2022-(2017) 6,506,798 6,723,571
HSBC Bank of Canada5,000,000 2.94% due Jan. 14, 2020 4,895,100 5,151,708
HudBay Minerals, Inc.6,000,000 9.50% due Oct. 1, 2020 6,996,818 6,771,498
Huntington Ingalls Industries Inc. (callable)1,500,000 7.13% due Mar. 15, 2021-(2016) 1,456,597 1,884,531
IAMGOLD Corporation9,900,000 6.75% due Oct. 1, 2020 9,636,373 8,530,521
Iron Mountain Canada Operations ULC(callable)
7,000,000 6.13% due Aug. 15, 2021-(2017) 7,015,000 7,110,833Isle of Capri Casions Inc. (callable)
4,000,000 8.88% due Jun. 15, 2020-(2016) 4,062,398 4,833,469Kodiak Oil & Gas Corporation (callable)
2,040,000 5.50% due Jan. 15, 2021-(2017) 2,317,565 2,385,169Kruger Products LP
4,000,000 8.00% due Aug. 9, 2018 4,000,000 4,241,667Loblaw Companies Limited
5,000,000 3.75% due Mar. 12, 2019 5,243,650 5,281,456Lone 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 8,304,294MEG Energy Corporation (callable)
6,250,000 6.38% due Jan. 30, 2023-(Jul. 30, 2017) 6,343,117 6,554,993MGM Resorts International
1,500,000 6.63% due Dec. 15, 2021 1,727,041 1,861,431Millar Western Forest Products Ltd. (Callable)
10,625,000 8.50% due Apr. 1, 2021-(2016) 8,977,545 12,792,663Morgan Stanley
9,000,000 4.90% due Feb. 23, 2017 9,545,000 9,538,868Navistar International Corporation (callable)
2,000,000 8.25% due Nov. 1, 2021 -(2014) 2,162,940 2,309,597New Gold Inc. (callable)
4,000,000 6.25% due Nov. 15, 2022-(2017) 4,450,227 4,583,962Newalta Corp. (callable)
6,650,000 5.88% due Apr. 1, 2021-(2017) 6,658,000 6,414,479Newalta Corporation (callable)
2,500,000 7.75% due Nov. 14, 2019-(2015) 2,500,000 2,562,709NGPL Pipeco LLC
5,289,000 7.12% due Dec. 15, 2017 6,191,741 6,087,414North American Energy Partners Inc. (callable)
2,847,000 9.13% due Apr. 7, 2017-(2014) 2,809,539 2,858,862NRG Energy, Inc. (callable)
7,372,000 8.25% due Sep. 1, 2020-(2015) 7,321,298 9,118,583NRG Energy, Inc.
2,500,000 7.63% due Jan. 15, 2018 2,477,168 3,192,671NRL Energy Investments Ltd. (callable)
21,500,000 8.25% due Apr. 13, 2018-(2015) 18,918,125 18,570,625Paramount Resources Ltd. (callable)
8,000,000 8.25% due Dec. 13, 2017-(2014) 8,150,000 7,785,33313,500,000 7.63% due Dec. 4, 2019-(2015) 13,538,405 12,813,750
PBF Holding Co. LLC (callable)7,000,000 8.25% due Feb. 15, 2020-(2016) 6,874,390 8,145,004
Perpetual Energy Inc. (callable)1,220,000 8.75% due Mar. 15, 2018-(2015) 1,061,400 1,172,7252,500,000 8.75% due Jul. 23, 2019-(Jul 23, 2016) 2,500,000 2,383,333
Petrobakken Energy Ltd. (callable)6,375,000 8.63% due Feb. 1, 2020-(2016) 6,475,019 5,215,707
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)
Postmedia Network Inc. (callable)7,393,536 8.25% due Aug. 16, 2017-(2015) 7,426,469 7,684,656
Precision Drilling Corporation (callable)9,000,000 6.50% due Mar. 15, 2019-(2015) 9,173,125 8,388,397
Quadra FNX Mining Ltd. (callable)1,000,000 7.75% due Jun. 15, 2019-(2015) 972,027 1,198,213
Quebecor Media (callable)2,447,000 7.38% due Jan. 15, 2021-(2016) 2,495,940 2,612,173
Quebecor Media6,750,000 6.63% due Jan. 15, 2023 6,753,938 6,997,500
Reynolds Group Issuer LLC (callable)7,000,000 5.75% due Oct. 15, 2020-(2015) 7,636,231 8,372,868
RioCan Real Estate Investment Trust4,290,000 3.72% due Dec. 13, 2021 4,277,988 4,422,590
River Cree Enterprises (callable)1,750,000 11.00% due Jan. 20, 2021-(2018) 1,749,668 1,859,375
Royal Bank of Canada (callable)5,000,000 2.99% due Dec. 6, 2024-(2019) 4,821,650 5,114,202
Savanna Energy Services Corp. (callable)5,525,000 7.00% due May 25, 2018-(2014) 5,510,135 5,230,333
Shaw Communications Inc.8,000,000 4.35% due Jan. 31, 2024 8,426,000 8,505,858
Sherritt International Corporation5,153,211 8.00% due Nov. 15, 2017 5,295,049 5,121,003
Sherritt International Corporation (callable)10,250,000 7.88% due Oct. 11, 2022-(2018) 9,966,250 9,677,708
Sherritt International Corporation (callable)4,434,329 7.50% due Sep. 24, 2020-(2019) 4,369,946 4,232,937
Smithfield Foods, Inc. (callable)2,500,000 6.63% due Aug. 15, 2022-(2017) 2,513,998 3,039,051
Sobeys Inc.4,300,000 3.52% due Aug. 8, 2018 4,443,577 4,453,883
Southern Pacific Resource Corporation(callable)
6,000,000 8.75% due Jan. 25, 2018-(2015) 5,540,250 765,000Sprint Corporation
7,000,000 7.25% due Sep. 15, 2021 8,285,040 8,103,901Superior Plus LP (callable)
7,500,000 6.50% due Dec. 9, 2021-(2017) 7,500,000 7,378,125Taseko Mines Limited (callable)
7,700,000 7.75% due Apr. 15, 2019-(2015) 7,552,894 8,042,242Tervita Corporation (callable)
7,500,000 9.75% due Nov. 1, 2019-(2015) 7,356,675 4,982,883Transcontinental Inc.
7,000,000 3.90% due May 13, 2019 7,000,000 7,103,969Trevali Mining Corporation
2,000,000 12.50% due May 30, 2019 1,960,000 1,967,378Trilogy Energy Trust (callable)
7,000,000 7.25% due Dec. 13, 2019-(2015) 7,085,000 6,673,333United Refining Company (callable)
4,074,000 10.50% due Feb. 28, 2018-(2015) 3,958,776 4,987,896United States Steel Corporation
1,900,000 7.38% due Apr. 1, 2020 2,055,861 2,327,494Verizon Communications Inc.
6,856,000 2.50% due Sep. 15, 2016 7,856,473 8,137,572Videotron Ltd. (callable)
6,500,000 5.63% due Jun. 15, 2025-(Mar. 15, 2025) 6,500,000 6,489,167Wajax Corp. (callable)
2,250,000 6.13% due Oct. 23, 2020-(2017) 2,250,000 2,271,563Wells Fargo Financial Canada Corporation
15,250,000 3.04% due Jan. 29, 2021 15,417,598 15,694,074
Portfolio Advisor: Guardian Capital LP
The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014FaceValue ($)/Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)
Wynn Las Vegas LLC / Corporation (callable)5,500,000 4.25% due May 30, 2023-(Feb. 28, 2023) 5,766,958 6,096,179
679,465,191 663,008,130
TOTAL BOND AND DEBENTUREINSTRUMENTS 762,825,080 747,015,074
EQUITIES – 6.2%Canadian Equities – 0.1%
520,000 Canadian International Oil CorporationWarrants May 2, 2016* – –
735,926 Lone Pine Resources Canada Ltd.* – 782,804372,000 Banro Corp. Warrants Mar. 2, 2017* – 130246,400 Trevali Mining Corporation Warrants Sep. 30,
2014* – 62,80720,700 Data & Audio-Visual Enterprises Holdings Inc.
Warrants* $12.00 Sep. 25, 2018 – –48,300 Data & Audio-Visual Enterprises Holdings lnc.*
Warrants $3.91 Sep. 25, 2018 – –
– 845,741
United States – 6.1%1,241,100 SPDR Barclays Capital High Yield Bond ETF 51,547,404 55,609,691
735,926 Lone Pine Resources Inc.* – 854
51,547,404 55,610,545
TOTAL EQUITIES 51,547,404 56,456,286
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
MONEY MARKET INSTRUMENTS – 10.3%52,959,000 Government of Canada Treasury Bills
0.86% to 0.96% due fromJan. 5, 2015 to Mar. 12, 2015 52,874,088 52,909,416
11,600,000 Province of Quebec Treasury Bills0.08% to 1.00% due fromJan. 20, 2015 to Feb. 13, 2015 11,975,633 12,087,421
1,385,000 Province of Alberta Promissory Notes0.97% due Jan. 27, 2015 1,382,687 1,384,045
1,730,000 Province of British Columbia Promissory Notes(US) 0.09% due Mar. 25, 2015 2,014,022 2,007,247
1,675,000 Canadian Wheat Board Commercial Paper(US) 0.05% due Jan. 30, 2015 1,948,668 1,943,758
5,270,000 Farm Credit Canada Commercial Paper(US) 0.04% to 0.05% due from 5,915,812 6,115,617
15,915,000 Province of Ontario Commercial Paper(US) 0.06% to 0.99% due from Jan. 5, 2015 to
Feb. 10, 2015 17,455,218 17,547,185
93,566,128 93,994,689
TOTAL INVESTMENT PORTFOLIO 907,938,612 897,466,049
Currency Forward Contracts – 0.1% 568,170OTHER ASSETS, LESS LIABILITIES – 1.3% 12,467,099
NET ASSETS – 100.0% 910,501,318
* This security is not actively traded and considered illiquid.
CURRENCY FORWARD CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation/
(Depreciation)
Feb. 19, 2015 Canadian Dollar 43,508,237 U.S. Dollar 38,400,000 44,665,705 (1,157,468)Feb. 19, 2015 U.S. Dollar 38,400,000 Canadian Dollar 43,282,752 43,183,647 1,379,426Feb. 20, 2015 Canadian Dollar 70,983,441 U.S. Dollar 62,660,000 72,885,890 (1,902,450)Feb. 20, 2015 U.S. Dollar 62,660,000 Canadian Dollar 70,631,605 70,468,061 2,248,662
568,170
The currency forward contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.
Portfolio Advisor: Guardian Capital LP
The accompanying notes are an integral part of these financial statements.
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-For equities, all common shares unless otherwise noted.
Scotia Private High Yield Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $757,939,976 $570,817,551
Revaluation of Investments at FVTPL 1,740,645 1,557,934
Net assets attributable to holders of redeemable units $759,680,621 $572,375,485
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $46,463,286
Revaluation of Investments at FVTPL 182,711
Increase (decrease) in net assets attributable to holders of redeemable units $46,645,997
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
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 fixed incomeinstruments.
Interest Rate Exposure* December 31, 2014 December 31, 2013 January 1, 2013
Less than 1 year 131,776,149 $ 36,735,208 $ 10,471,934
1-3 years 277,024,411 216,983,308 149,020,415
3-5 years 143,361,190 200,082,011 168,267,998
5-10 years 178,190,950 123,341,784 131,839,796
> 10 years 16,662,374 12,164,720 17,902,211
Total 747,015,074 $589,307,031 $477,502,354
* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying Funds, and preferred shares where applicable.
As at December 31, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curveand all other variables held constant, net assets attributable to holders of redeemable units would have decreased or increased,respectively, by $7,794,689 or approximately 0.9% (December 31, 2013 – $5,654,147 or approximately 0.7%, January 1, 2013 – $5,136,050or approximately 0.9%). In practice, actual results may differ from this sensitivity analysis and the difference could be material.
ii) Currency risk
The tables below indicates the currency to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables also
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Scotia Private High Yield Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
illustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
Currency
NetCurrencyExposure
($)Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 377,956,625 41.5 37,795,663 4.2
December 31, 2013
Currency
NetCurrencyExposure
($)Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 356,967,783 47.0 35,696,778 4.7
January 1, 2013
Currency
NetCurrencyExposure
($)Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 268,901,972 47.0 26,890,197 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 December 31,2014, approximately 6.2% (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 $5,645,629 (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
The table below summarizes the credit ratings of any fixed income securities and preferred securities, excluding cash and moneymarket instruments, held by the Fund.
Percentage ofTotal Fixed IncomeInstruments (%)
Percentage ofNet Assets (%)
A- to AAA+ 22.7 18.6
B- to BBB+ 63.2 51.9
C- to CCC+ 10.9 8.9
Unrated 3.2 2.6
Total 100.0 82.0
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The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 December 31, 2012
On DemandLess than3 months On Demand
Less than3 months On Demand
Less than3 months
Accounts Payable and accrued liabilities $ – $ 293,508 $ – $321,214 $ – $6,235,797
Unrealized loss currency forward contracts – 3,059,918 – – – –
Redeemable units 910,501,318 – 759,680,621 – 572,375,485 –
$910,501,318 $3,353,426 $759,680,621 $321,214 $572,375,485 $6,235,797
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Bond and Debenture Instruments 82.1 77.6 83.3
Equities 6.2 15.0 5.8
Money Market Instruments 10.3 6.0 10.5
Currency Forward Contracts 0.1 – –
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $ 55,609,691 $ – $ 783,658 $ 56,393,349
Warrants – 62,937 – 62,937
Money Market Instruments – 93,994,689 – 93,994,689
Bond and Debenture Instruments – 735,579,165 11,435,909 747,015,074
Currency Forward Contracts – Assets – 3,628,088 – 3,628,088
55,609,691 833,264,879 12,219,567 901,094,137
Currency Forward Contracts – Liabilities – (3,059,918) – (3,059,918)
$ 55,609,691 $830,204,961 $12,219,567 $898,034,219
December 31, 2013 Level 1 Level 2 Level 3 Total
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
Money Market Instruments – 45,657,633 – 45,657,633
$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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The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
Reconciliation of Level 3 Financial InstrumentsThe following tables presents the movement in the Fund’s Level 3 financial instruments for the periods ended at December 31, 2014,December 31, 2013 and January 1, 2013.
December 31, 2014 December 31, 2013 January 1, 2013
Beginning of period $12,207,751 $ – $ –
Purchases 199,409 9,078,143 –
Sales – – –
Transfers into Level 3 5,967,216 8,719,135 –
Transfers out of Level 3 – – –
Net realized gains (losses) – – –
Net change in unrealized appreciation (depreciation)* (6,154,809) (5,589,527) –
End of period $12,219,567 $12,207,751 $ –
* Net change in unrealized appreciation (depreciation) for Level 3 financial instruments held as at December 31, 2014, December 31, 2013 and January 1, 2013, was $(6,154,809),$(2,011,017) and nil, respectively.
Level 3 Valuation TechniquesThe significant unobservable inputs and valuation techniques used to determine the fair value measurements categorized in Level 3are indicated below:
Valuation Technique Significant Unobservable Input December 31, 2014 December 31, 2013 January 1, 2013
Bond and Debenture Instruments Fair value based on transaction price Transaction price $ – $ 6,498,538 $ –
Bond and Debenture Instruments Internal Fundamental Model Probability weighting 4,639,001 5,709,213 –
Bond and Debenture Instruments Grey Market Trade Transaction price 6,796,908 – –
Equities Comparable performance based model Peer group price performance 783,658 – –
Equities Financing Financing price – – –
Equities Grey market trade Transaction price – – –
Warrant Broker quote Broker quoted price – – –
$12,219,567 $12,207,751 $ –
The significant unobservable inputs used in the valuation techniques used to estimate the fair values of level 3 investments can varyconsiderably over time to time depending on company specific factors and economic or market conditions. A 10% increase ordecrease in the results of applying these valuation techniques, with all other variables held consistent, would have resulted in anincrease or decrease, respectively, in net assets of approximately $1,221,967 (December 31, 2013 - $1,220,775, January 1, 2013 - nil).
4. Offsetting of Financial Assets and Liabilities (note 2)The following table presents offsetting of financial assets and liabilities and collateral amounts that would occur if future events,such as bankruptcy or termination of contracts were to arise. No amounts were offset in the financial statements.
December 31, 2014
Financial assets – by typeGross amount
of assetsMaster netting
offsetCollateralpledged Net Amount
Future contracts $ – $ – $ – $ –
Currency spot contracts – – – –
Currency forward contracts 3,628,088 (3,059,918) – 568,170
Swap contracts – – – –
Total $3,628,088 $(3,059,918) $ – $568,170
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The accompanying notes are an integral part of these financial statements.
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Scotia Private High Yield Income Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
Financial liabilities – by typeGross amountof liabilities
Master nettingoffset
Collateralpledged Net Amount
Future contracts $ – $ – $ – $ –
Currency spot contracts – – – –
Currency forward contracts 3,059,918 (3,059,918) – –
Swap contracts – – – –
Total $3,059,918 $(3,059,918) $ – $ –
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 9.42 9.42 9.40 9.40
Series F 9.79 9.79 9.76 9.76
Series I 9.46 9.46 9.43 9.43
Series M 9.48 9.48 9.46 9.46
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The accompanying notes are an integral part of these financial statements.
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Scotia Private American Core-Plus Bond Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $679,432,581 $420,421,455 $280,896,529Unrealized gain on currency
forward contracts 526,380 27,378 669,099Cash 65,872,456 74,796,818 41,186,145Accrued investment income 3,771,538 2,445,711 1,549,717Receivable for securities sold 12,467,836 5,351,809 2,472,460Subscriptions receivable 174,510 143,092 –
762,245,301 503,186,263 326,773,950
LIABILITIESCurrent liabilitiesPayable for securities purchased 133,885,686 86,584,357 53,341,852Redemptions payable 3,524 20,383 857Unrealized loss on currency forward
contracts 10,848 904,317 357,418
133,900,058 87,509,057 53,700,127
Net Assets attributable to holders ofredeemable units $628,345,243 $415,677,206 $273,073,823
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $ 39,874,459 $ 32,009,024 $ 27,783,584Series F Units $ 131,023 $ 139,095 $ 112,512Series I Units $588,339,761 $383,529,087 $245,177,727
UNITS OUTSTANDINGPinnacle Series Units 4,290,006 3,610,634 3,035,648Series F Units 13,801 15,359 12,033Series I Units 61,446,382 41,999,468 26,003,440
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 9.29 $ 8.86 $ 9.15Series F Units $ 9.49 $ 9.05 $ 9.35Series I Units $ 9.57 $ 9.13 $ 9.43
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Interest for distribution purposes $ 17,016,081 $ 10,812,851Net realized gain (loss) on non-derivative financial assets 36,150,880 5,763,752Net realized gain (loss) on currency forwards (42,582,294) (18,161,401)Net gain (loss) foreign exchange (9,858,731) (4,831,468)Change in unrealized appreciation (depreciation) of non-
derivative financial assets 29,755,388 975,653Change in unrealized appreciation (depreciation) of
currency forwards 1,392,471 (1,188,620)
Net gain (loss) on investments 31,873,795 (6,629,233)Securities lending 34,884 13,196Net realized (gain) loss foreign exchange on cash 9,125,392 5,228,846Other income 192 2,082
Total income (loss) 41,034,263 (1,385,109)
EXPENSESManagement fees (note 5) 1,073 1,002Administration fees (note 6) 86,649 –Harmonized Sales Tax/Goods and Services Tax 17,618 10,920Audit fees 13,213 10,130Independent Review Committee fees 1,449 1,120Custodian fees 13,484 29,170Filing fees 11,073 16,965Legal fees 6,655 4,640Unitholder reporting costs 9,749 4,460Unitholder administration and service fees 61,365 97,934Overdraft charges 6,966 2,543Foreign withholding taxes/tax reclaims 28,309 4,695
Total expenses 257,603 183,579Absorbed expenses (1,991) (2,056)
Net expenses 255,612 181,523
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 40,778,651 $ (1,566,632)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 2,644,697 $ (119,742)Series F Units $ 9,649 $ (1,224)Series I Units $ 38,124,305 $ (1,445,666)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 0.67 $ (0.04)Series F Units $ 0.63 $ (0.08)Series I Units $ 0.69 $ (0.04)
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 3,937,576 3,292,785Series F Units 15,273 14,532Series I Units 55,059,104 35,299,759
* 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: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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Scotia Private American Core-Plus Bond Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 2,644,697 (119,742)Series F Units 9,649 (1,224)Series I Units 38,124,305 (1,445,666)
40,778,651 (1,566,632)
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (1,002,029) (805,443)Series F Units (2,840) (2,715)Series I Units (15,512,688) (9,693,198)
(16,517,557) (10,501,356)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 11,612,995 9,206,933Series F Units 2,302 34,492Series I Units 185,598,444 155,095,604
Reinvested distributionsPinnacle Series Units 997,854 804,529Series F Units 2,343 2,208Series I Units 15,512,688 9,693,198
Payments on redemptionPinnacle Series Units (6,388,082) (4,860,837)Series F Units (19,526) (6,178)Series I Units (18,912,075) (15,298,578)
188,406,943 154,671,371
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 7,865,435 4,225,440Series F Units (8,072) 26,583Series I Units 204,810,674 138,351,360
212,668,037 142,603,383
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 39,874,459 32,009,024Series F Units 131,023 139,095Series I Units 588,339,761 383,529,087
$628,345,243 $415,677,206
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to
holders of redeemable units $ 40,778,651 $ (1,566,632)Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (36,150,880) (5,763,752)
Net unrealized (gain) loss foreign exchange oncash (8,663,024) (4,689,875)
Change in unrealized (appreciation) depreciationon sale of non-derivative financial assets (29,755,388) (975,653)
Change in unrealized (appreciation) depreciation offorward currency contracts (1,392,471) 1,188,620
Purchases of non-derivative financial assets (3,415,540,421) (2,028,269,089)Proceeds from sale of non-derivative financial
assets 3,262,620,865 1,925,846,724Accrued investment income (1,325,827) (895,994)
Net cash provided by (used in) operating activities (189,428,495) (115,125,651)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 197,182,324 164,193,937Amounts paid on redemption of redeemable units (25,336,542) (20,146,067)Distributions to unitholders of redeemable units (4,673) (1,421)
Net cash provided by (used in) financing activities 171,841,109 144,046,449Net unrealized (gain) loss foreign exchange on cash 8,663,024 4,689,875Net increase (decrease) in cash (17,587,386) 28,920,798Cash (Bank Indebtedness) at beginning of period 74,796,818 41,186,145
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 65,872,456 $ 74,796,818
Interest received(1) 15,690,254 9,916,857
(1) Classified as operating items.
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS – 108.1%Australian Dollar – 0.2%
Morgan Stanley1,590,000 4.75% due Nov. 16, 2018 1,621,407 1,562,912
British Pound – 0.8%KFW
1,800,000 2.00% due Dec. 6, 2018 3,332,383 3,357,631United Mexican States
1,090,000 5.63% due Mar. 19, 2114 1,969,436 1,978,247
5,301,819 5,335,878
European Euro – 0.7%America Movil Sab De CV
1,400,000 3.26% due Jul. 22, 2023 1,905,514 2,292,096Bundesrepublik Deutschland
900,000 4.75% due Jul. 4, 2028 1,821,437 1,896,664Republic of Korea
75,000 4.25% due Dec. 7, 2021 113,400 127,513Vale S.A.
125,000 4.38% due Mar. 24, 2018 172,710 189,595
4,013,061 4,505,868
India Rupee – 0.6%European Bank Reconstruction &Development
70,000,000 5.00% due May 28, 2015 1,229,106 1,283,673International Finance Corporation
120,000,000 7.80% due Jun. 3, 2019 2,175,277 2,444,161
3,404,383 3,727,834
Indonesian Rupiah – 0.1%Government of Indonesia
7,200,000,000 7.00% due May 15, 2022 833,063 644,011
Malaysian Ringgit – 0.2%Government of Malaysia
4,000,000 3.65% due Oct. 31, 2019 1,363,634 1,316,260
Mexican Peso – 1.1%America Movil SAB de C.V.
22,000,000 6.00% due Jun. 9, 2019 1,856,920 1,719,905Mex Bonos Desarr
30,180,000 6.50% due Jun. 9, 2022 2,659,848 2,495,02530,500,000 7.75% due May 29, 2031 2,844,336 2,734,043
7,361,104 6,948,973
New Zealand Dollar – 1.5%Citigroup Inc.
1,350,000 6.25% due Jun. 29, 2017 1,094,145 1,253,804Goldman Sachs Group, Inc., The
3,310,000 5.20% due Dec. 17, 2019 2,967,086 3,015,841JPMorgan Chase & Co
2,300,000 4.25% due Nov. 2, 2018 1,991,202 2,025,549KFW
2,500,000 3.75% due Jun. 14, 2018 2,311,335 2,225,014
8,363,768 8,520,208
Swedish Krona – 0.2%Swedish Government
8,350,000 3.50% due Jun. 1, 2022 1,486,041 1,503,392
Thai Baht – 0.2%Government of Thailand
41,400,000 3.88% due Jun. 13, 2019 1,473,778 1,550,488
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar – 102.5%
Access Group Inc. (Floating Rate)1,302,404 0.68% due Aug. 25, 2037 1,336,477 1,376,969
312,723 0.45% due Apr. 27, 2026 318,665 362,253Access Group, Inc., Series 2008-1
2,773,357 1.22% due Jul. 1, 2038 3,072,617 3,160,453Access Group, Inc., Series 2008-1(Floating Rate)
2,527,492 1.22% due Jul. 1, 2038 2,800,221 2,896,789Adjustable Rate Mortgage Trust (callable)
35,878 5.03% due Jan. 25, 2036 36,697 39,991Advanced Micro Devices Inc.
1,670,000 7.50% due Aug. 15, 2022 1,876,722 1,756,766African Development Bank
1,000,000 0.75% due Oct. 18, 2016 1,036,154 1,155,789Albemarle Corporation (callable)
1,180,000 4.15% due Dec. 1, 2024-(Sep. 1, 2024) 1,328,428 1,404,1691,000,000 5.45% due Dec. 1, 2044-(Jun. 1, 2044) 1,144,526 1,252,031
Ally Auto Receivables Trust1,465,057 0.70% due Dec. 21, 2015 1,628,385 1,701,783
555,000 1.21% due Jul. 15, 2016 643,386 645,3794,820,786 0.59% due Jan. 17, 2017 5,259,546 5,598,9761,734,872 0.63% due May 15, 2017 1,943,327 2,015,964
Ally Auto Receivables Trust 2011-1221,216 2.23% due Mar. 15, 2016 245,592 257,224
Ally Auto Receivables Trust 2012-32,735,824 0.85% due Aug. 15, 2016 3,019,149 3,178,175
Ally Master Owner Trust2,570,000 1.44% due Feb. 15, 2017 2,673,736 2,987,3203,670,000 1.21% due Jun. 15, 2017 3,965,750 4,273,4692,370,000 1.00% due Feb. 15, 2018 2,662,275 2,757,674
Altria Group, Inc.130,000 9.95% due Nov. 10, 2038 231,336 262,508807,000 10.20% due Feb. 6, 2039 1,397,768 1,642,681
Amazon.com Inc.570,000 1.20% due Nov. 29, 2017 563,623 661,258
Amazon.com Inc. (callable)1,505,000 3.80% due Dec. 5, 2024-(Sep. 5, 2024) 1,709,943 1,791,626
American Airlines 2014-1 Class B PassThrough Trust
885,000 4.38% due Oct. 1, 2022 1,005,247 1,054,354American Express Company (callable)
925,000 3.63% due Dec. 5, 2024-(Nov. 4, 2024) 1,049,791 1,085,305AmeriCredit Automobile Receivables Trust
1,187,047 0.68% due Oct. 11, 2016 1,303,096 1,378,580137,754 0.53% due Nov. 8, 2016 149,584 159,963
1,728,963 0.62% due Jun. 8, 2017 1,899,328 2,007,8735,123,382 0.67% due Jun. 8, 2017 5,634,602 5,950,626
885,112 0.57% due Jul. 10, 2017 995,155 1,027,840615,000 1.59% due Jul. 10, 2017 680,434 716,091
6,445,000 0.44% due Oct. 10, 2017 7,033,416 7,481,5482,218,663 0.61% due Oct. 10, 2017 2,444,545 2,574,458
570,000 1.07% due Mar. 8, 2018 648,052 661,687Ameriprise Financial Inc. (callable)
320,000 7.52% due Jun. 1, 2066-(2016) 315,340 397,818Anheuser-Busch InBev NV
1,557,000 5.38% due Jan. 15, 2020 1,997,400 2,048,303Anheuser-Busch InBev Worldwide Inc.
475,000 8.20% due Jan. 15, 2039 780,628 864,095Apple Inc.
650,000 2.85% due May 6, 2021 711,872 773,739
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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27
Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
ArcelorMittal1,265,000 7.25% due Mar. 1, 2041 1,421,645 1,476,638
Avago Technologies Ltd.1,343,250 3.75% due May 6, 2021 1,450,145 1,556,569
Baidu, Inc.1,523,000 3.25% due Aug. 6, 2018 1,658,584 1,808,414
Banc of America Commercial Mortgage Inc.134,157 2.62% due Nov. 25, 2033 131,150 154,331
1,494,927 6.24% due Feb. 10, 2051 1,747,728 1,922,240Banc of America Commercial MortgageTrust
1,258,000 5.18% due Oct. 10, 2045 1,422,759 1,499,512234,697 5.32% due Sep. 10, 2047 244,685 273,309
1,545,000 5.62% due Apr. 10, 2049 1,878,767 1,942,573Banc of America Mortgage Securities(callable)
59,506 2.73% due Oct. 25, 2034-(May 25, 2016) 55,494 66,172242,894 2.69% due Aug. 25, 2035-(Sep. 25, 2021) 206,465 255,18483,405 6.00% due Sep. 25, 2037-(Jan. 25, 2018) 74,428 88,834
Banc of America Mortgage Securities Inc.41,431 2.62% due Dec. 25, 2034 43,445 46,097
Banc of America Mortgage Trust 2005-31,552,215 5.50% due Apr. 25, 2035 1,786,981 1,866,106
Bancolombia S.A.700,000 6.13% due Jul. 26, 2020 825,991 855,812
Bank of America Alternative Loan Trust(callable)
105,083 6.00% due Jun. 25, 2035-(Mar. 25, 2023) 96,227 118,119Bank of America Auto Trust
1,017,857 0.78% due Jun. 15, 2016 1,058,259 1,182,478Bank of America Corporation
985,000 4.75% due Aug. 1, 2015 996,407 1,169,0491,760,000 4.20% due Aug. 26, 2024 1,931,314 2,110,7231,250,000 4.25% due Oct. 22, 2026 1,402,652 1,452,037
Barclays Bank PLC1,115,000 2.75% due Nov. 8, 2019 1,262,241 1,293,876
BBVA US Senior SAU1,675,000 4.66% due Oct. 9, 2015 1,795,310 1,995,081
Bear Stearns Adjustable Rate MortgageTrust (callable)
655,002 2.96% due Jul. 25, 2034-(Feb. 25, 2016) 659,081 762,953Bear Stearns Asset Backed Securities(Floating Rate)
199,559 0.49% due Dec. 25, 2035 191,797 231,273Bear Stearns Commercial MortgageSecurities Trust
217,958 5.12% due Feb. 11, 2041 238,404 254,186Bear Stearns Companies LLC
1,350,000 5.55% due Jan. 22, 2017 1,581,837 1,693,077BellSouth
945,000 7.88% due Feb. 15, 2030 1,353,474 1,468,194Boston Scientific Corporation
1,875,000 6.00% due Jan. 15, 2020 2,403,669 2,459,118BP Capital Markets PLC
855,000 3.25% due May 6, 2022 895,226 980,179Braskem Finance Ltd.
1,335,000 6.45% due Feb. 3, 2024 1,472,286 1,568,358Brazilian Government International Bond
700,000 5.00% due Jan. 27, 2045 738,848 789,931Capital Auto Receivables Asset Trust
1,405,000 1.29% due Apr. 20, 2018 1,425,349 1,631,406
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
CareFusion Corporation805,000 6.38% due Aug. 1, 2019 1,033,307 1,080,701
Carmax Auto Owner Trust776,370 0.60% due Oct. 16, 2017 882,131 900,922
Carolina Power & Light Co. (callable)1,155,000 4.10% due Mar. 15, 2043-(Sep. 15, 2042) 1,190,721 1,410,998
CD 2005-CD1 Commercial Mortgage Trust170,000 5.23% due Jul. 15, 2044 198,932 202,653445,000 5.23% due Jul. 15, 2044 513,837 528,175
CD 2007-CD4 Commercial Mortgage Trust1,335,000 5.37% due Dec. 11, 2049 1,559,921 1,614,472
Chesapeake Energy Corporation1,380,000 6.63% due Aug. 15, 2020 1,703,881 1,719,058
Chesapeake Energy Corporation (callable)(Floating Rate)
1,040,000 3.48% due Apr. 15, 2019-(2015) 1,136,463 1,181,783Chevron Corporation (callable)
1,350,000 3.19% due Jun. 24, 2023-(Mar. 24, 2023) 1,422,198 1,604,122Chrysler Group LLC
1,246,778 3.50% due May 24, 2017 1,346,835 1,441,977Citicorp Mortgage Securities, Inc. (callable)
247,338 5.75% due Jun. 25, 2036-(Jul. 25, 2016) 214,063 291,854Citigroup Commercial Mortgage Trust
640,000 4.96% due May 15, 2043 731,190 748,801CNOOC Finance 2013 Ltd.
920,000 3.00% due May 9, 2023 849,880 1,010,436Comcast Corporation
580,000 6.50% due Jan. 15, 2015 639,664 674,3671,325,000 6.95% due Aug. 15, 2037 2,016,958 2,166,806
COMM Mortgage Trust215,000 5.21% due Jun. 10, 2044 246,908 254,786
1,240,000 3.84% due Sep. 10, 2047 1,400,849 1,520,184405,000 3.94% due Nov. 10, 2047 468,843 488,103
Commercial Mortgage Asset Trust4,180 6.89% due Jan. 17, 2032 4,467 4,850
Commonwealth Edison Company700,000 5.80% due Mar. 15, 2018 810,486 916,426100,000 6.45% due Jan. 15, 2038 122,518 160,554
ConAgra Foods, Inc.265,000 4.95% due Aug. 15, 2020 323,014 340,115570,000 8.25% due Sep. 15, 2030 848,780 954,543
Corporacion Andina de Fomento549,000 4.38% due Jun. 15, 2022 537,018 687,206
Countrywide Alternative Loan Trust18,376 5.50% due Mar. 25, 2036 24,239 17,703
Countrywide Asset-Backed Certificates99,286 5.53% due Mar. 25, 2029 88,664 111,993
Countrywide Home Loans (callable)36,511 2.46% due Sep. 20, 2034-(Apr. 20, 2017) 35,415 25,91933,636 6.00% due Mar. 25, 2036-(Jan. 25, 2024) 35,722 37,209
Credit Suisse First Boston MortgageSecurities Corp.
290,000 5.28% due Aug. 15, 2038 315,653 337,749795,000 5.23% due Dec. 15, 2040 891,974 915,122940,000 5.23% due Dec. 15, 2040 1,068,413 1,107,677
Credit Suisse Mortgage Trust460,000 5.54% due Jan. 15, 2049 536,393 572,750
CVS Caremark Corporation540,000 3.25% due May 18, 2015 561,001 633,220
Deutsche Bank AG (callable)1,140,000 7.50% due Dec. 29, 2049-(Apr. 30, 2025) 1,288,560 1,295,363
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
DIRECTV Holdings LLC (callable)1,825,000 4.45% due Apr. 1, 2024-(Jan. 1, 2024) 2,095,548 2,231,342
Discover Card Execution Note Trust3,150,000 0.81% due Aug. 15, 2017 3,410,836 3,659,338
Discover Financial Services (callable)1,070,000 3.95% due Nov. 6, 2024-(Aug. 6, 2024) 1,214,678 1,251,885
Dish DBS Corp1,425,000 6.75% due Jun. 1, 2021 1,735,664 1,789,262
Energy Transfer Partners (callable)1,070,000 6.05% due Jun. 1, 2041-(Dec. 1, 2040) 1,220,635 1,361,366
Enterprise Products Operating LLC (callable)535,000 3.75% due Feb. 15, 2025-(Nov. 15, 2024) 594,835 623,865805,000 7.03% due Jan. 15, 2068-(2018) 885,038 1,015,195
Enterprise Products Operating LLC1,775,000 5.25% due Jan. 31, 2020 2,066,941 2,284,450
Export-Import Bank of Korea, The400,000 4.13% due Sep. 9, 2015 412,102 474,764400,000 5.00% due Apr. 11, 2022 403,409 527,601
Express Scripts Holding Company1,400,000 4.13% due Sep. 15, 2020 1,620,131 1,719,236
Fannie Mae64,213 5.50% due Sep. 25, 2017 67,287 78,158
1,466,299 2.73% due Apr. 1, 2022 1,529,645 1,737,678413,307 5.26% due Jun. 1, 2023 516,729 538,39137,537 4.50% due Aug. 25, 2023 34,974 46,481
361,534 3.65% due Sep. 1, 2023 405,178 455,567629,727 3.80% due Sep. 1, 2023 686,621 770,974
1,010,000 3.02% due Aug. 25, 2024 1,149,822 1,201,343754,980 4.50% due Sep. 25, 2024 886,968 934,220101,813 5.00% due Oct. 25, 2024 107,149 127,527248,131 3.24% due Jun. 1, 2026 269,503 301,333
7,495 7.50% due Nov. 25, 2026 10,865 9,943361,074 4.50% due Jun. 25, 2029 416,685 451,526
1,036,140 4.00% due Nov. 25, 2029 1,071,886 1,280,1101,464 7.50% due Jun. 1, 2031 2,347 1,952
1,803,940 3.50% due Jan. 1, 2032 1,976,050 2,210,9812,096 7.50% due Apr. 1, 2032 3,044 2,7933,262 5.00% due Nov. 1, 2033 4,232 4,1761,749 5.00% due Nov. 1, 2034 2,074 2,1431,992 5.00% due Nov. 1, 2034 2,377 2,431
201,640 5.50% due Sep. 25, 2035 241,374 251,6856,166 5.00% due Jan. 1, 2036 6,842 7,669
597,149 5.50% due Aug. 1, 2037 731,859 778,5771,098,533 5.50% due Feb. 1, 2038 1,383,910 1,433,490
468,889 2.50% due May 25, 2041 478,851 550,6651,056,260 4.00% due Nov. 1, 2041 1,171,469 1,312,6061,405,000 2.00% due Dec. 25, 2042 1,357,140 1,524,6228,930,000 2.50% due 2.5% due Dec. 25, 2028 10,502,951 10,557,546
15,140,000 3.0% due Dec. 25, 2043 17,400,111 17,782,6812,665,000 3.50% due Dec. 1, 2099 3,254,764 3,267,172
17,875,000 4.00% due Dec. 1, 2099 21,857,650 22,139,22817,469,000 4.50% due Dec. 1, 2099 21,747,170 22,005,4014,605,000 5.00% due Dec. 1, 2099 5,818,727 5,904,3824,255,000 5.50% due Dec. 1, 2099 5,443,445 5,523,519
Fannie Mae Grantor Trust225,126 6.99% due Feb. 19, 2030 255,241 295,858151,168 7.50% due Jun. 19, 2030 171,640 205,04220,580 5.41% due Sep. 26, 2033 23,560 26,242
226,819 7.50% due Jul. 25, 2041 275,647 312,8909,253 9.50% due Jul. 25, 2041-(Aug. 25, 2015) 14,316 13,443
320,556 7.50% due Dec. 25, 2041 351,423 430,575
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
3,489 7.50% due Dec. 25, 2041-( Sep. 25, 2018) 5,030 4,864Fannie Mae Whole Loan (callable)
204,243 7.00% due Feb. 25, 2044-(Jul. 25, 2018) 232,690 279,934113,111 6.50% due Feb. 25, 2044-(Dec. 25, 2020) 142,635 153,18741,316 6.50% due May 25, 2044-(Oct. 25, 2022) 49,883 55,942
Fannie Mae Whole Loan811,758 7.00% due Jul. 25, 2044 974,927 1,119,083746,645 6.00% due Feb. 25, 2047 958,435 984,824
Federal Home Loan Bank11,305,289 4.00% due Aug. 1, 2044 13,362,715 14,077,131
Federal Home Loan Mortgage Corporation8,225 5.00% due Jun. 1, 2018 8,262 10,0856,386 5.00% due Sep. 1, 2033 8,699 8,006
1,318,248 2.50% due May 15, 2041 1,369,017 1,530,887782,727 3.00% due Jan. 15, 2042 827,954 927,178642,231 3.00% due Jul. 1, 2042 666,823 754,871
Federal National Mortgage Association25,730,000 3.50% due Dec. 1, 2099 30,534,255 31,133,2762,615,000 6.00% due Dec. 1, 2099 3,390,933 3,440,590
FHLMC Structured Pass Through Securities(callable)
16,700 6.50% due Sep. 25, 2043-(Aug. 25, 2020) 24,044 22,287FHLMC Structured Pass Through Securities
481,294 5.23% due May 25, 2043-(Nov. 25, 2020) 547,923 623,544Fifth Third Bancorp
1,200,000 2.88% due Oct. 1, 2021 1,304,907 1,401,926First Data Corporation
1,500,000 3.66% due Mar. 24, 2018 1,609,286 1,709,742First Horizon Mortgage Pass-Through Trust(callable)
408,515 2.63% due Dec. 25, 2034-(Oct. 25, 2017) 396,551 470,535Ford Credit Auto Lease Trust
2,861,240 0.60% due Mar. 15, 2016 3,283,997 3,323,476Ford Credit Auto Owner Trust
1,756,809 0.48% due Nov. 15, 2016 1,985,803 2,040,475793,072 1.35% due Dec. 15, 2016 869,952 922,983505,000 0.46% due Jul. 15, 2017 587,841 586,493967,591 0.55% due Jul. 15, 2017 1,087,761 1,124,317
Ford Credit Auto Owner Trust 2009-D727,791 0.84% due Aug. 15, 2016 799,057 845,510
Freddie Mac (callable)7,596 7.00% due May 15, 2024-(Feb. 15, 2014) 9,933 9,921
Freddie Mac7,720 1.50% due Mar. 15, 2015 7,875 8,967
980,000 2.00% due Aug. 25, 2016 935,887 1,163,137165,000 4.00% due Aug. 15, 2024 169,225 208,586107,401 5.00% due May 15, 2026 109,852 134,912220,000 4.50% due Nov. 15, 2029 229,963 287,481
2,545,000 4.50% due Apr. 15, 2030 3,009,601 3,170,012329,833 5.00% due May 15, 2033 347,565 405,973101,093 5.00% due Jun. 15, 2033 109,903 127,874381,000 4.50% due Dec. 15, 2033 404,720 479,109354,583 4.00% due Nov. 15, 2036 386,615 432,943398,770 3.00% due May 15, 2041 420,649 473,600577,714 2.00% due Dec. 15, 2041 586,754 659,993
Freeport-McMoRan Copper & Gold Inc.(callable)
800,000 4.55% due Nov. 14, 2024-(Aug. 14, 2024) 909,178 908,3861,335,000 5.40% due Nov. 14, 2034-(May 14, 2034) 1,511,283 1,517,681
GCCFC Commercial Mortgage Trust512,082 5.44% due Mar. 10, 2017 595,753 634,585
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
GE Commercial Mortgage Corporation830,000 5.04% due Jul. 10, 2045 917,270 984,451
Genentech, Inc.20,000 4.75% due Jul. 15, 2015 23,495 23,703
General Electric Capital Corporation515,000 5.25% due Dec. 6, 2017 583,441 662,203
General Electric Company695,000 4.50% due Mar. 11, 2044 764,188 897,919
General Mills, Inc.1,340,000 1.40% due Oct. 20, 2017 1,514,262 1,549,959
General Motors Financial Company, Inc.1,110,000 5.00% due Apr. 1, 2035 1,293,718 1,346,086
Georgia-Pacific LLC1,060,000 8.88% due May 15, 2031 1,592,632 1,930,413
Gilead Sciences, Inc.640,000 3.50% due Feb. 1, 2025 723,162 767,632705,000 4.50% due Feb. 1, 2045 795,011 880,019
Gilead Sciences, Inc. (callable)740,000 4.80% due Apr. 1, 2044-(Oct. 1, 2043) 839,780 963,481
Ginnie Mae II Pool747,459 4.00% due Apr. 20, 2040 828,641 909,565
1,937,326 4.56% due Nov. 1, 2062 2,130,148 2,459,285GlaxoSmithKline Capital Inc.
795,000 6.38% due May 15, 2038 1,111,389 1,232,674GMAC Mortgage Corporation Loan Trust(callable)
327,640 4.57% due May 25, 2035-(Nov. 25, 2021) 323,291 375,102Goldman Sachs Group, Inc., The
1,075,000 2.55% due Oct. 23, 2019 1,210,380 1,252,9861,075,000 6.35% due Feb. 15, 2034 1,463,697 1,477,7791,695,000 6.75% due Oct. 1, 2037 2,157,574 2,462,8051,060,000 4.80% due Jul. 8, 2044 1,124,449 1,310,733
Government National Mortgage Association1,792 7.50% due Feb. 15, 2032 2,613 2,433
25,431 7.00% due Dec. 15, 2034 31,108 33,90878,031 4.50% due Jun. 16, 2039 84,133 95,843
196,613 4.00% due Jan. 20, 2040 214,261 235,614181,721 3.50% due Feb. 20, 2040 199,016 211,790
2,723,565 3.50% due Feb. 20, 2040 2,991,955 3,198,232325,000 3.39% due Mar. 16, 2045 339,086 387,946600,000 3.86% due Oct. 16, 2047 580,855 729,097
1,730,000 4.37% due Sep. 16, 2051 1,904,398 2,158,0032,588,758 5.47% due Nov. 20, 2059 2,900,258 3,174,9232,559,243 5.39% due Dec. 20, 2059 2,883,475 3,142,010
337,114 5.07% due Apr. 20, 2062 393,342 423,944210,243 4.85% due May 20, 2062 244,354 264,307153,140 4.73% due Apr. 20, 2063 175,076 193,492606,092 4.68% due Aug. 20, 2064 741,862 757,709369,162 4.79% due Sep. 20, 2064 451,792 462,303176,652 4.65% due Dec. 1, 2099 195,204 226,94379,881 4.66% due Dec. 1, 2099 88,360 102,495
Government National MortgageAssociation II
253,968 3.50% due Jun. 20, 2040 265,589 317,6313,009,305 4.81% due Feb. 20, 2061 3,518,423 3,762,020
Great Plains Energy Inc. (callable)2,000,000 5.29% due Jun. 15, 2022-(Mar. 15, 2022) 2,362,965 2,647,650
GS Mortgage Securities Corp. IISeries 2005-GG4
825,000 4.78% due Jul. 10, 2039 929,572 963,078
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
GS Mortgage Securities Trust 2014-GC26565,000 4.51% due Nov. 10, 2047 647,306 674,430
Hewlett-Packard Company870,000 3.75% due Dec. 1, 2020 1,006,076 1,043,919
Hologic Inc.970,321 3.25% due Aug. 1, 2019 1,043,179 1,119,016
Homestar Mortgage Acceptance Corporation(callable)
513,740 0.62% due Oct. 25, 2034-(Jun. 25, 2016) 487,896 581,188Honda Auto Receivables Trust
2,914 0.37% due Oct. 16, 2015 3,279 3,3841,380,000 0.97% due Apr. 16, 2018 1,557,728 1,603,700
Hospira, Inc.2,145,000 5.20% due Aug. 12, 2020 2,575,716 2,687,038
HSBC Holdings PLC (callable)880,000 6.38% due Dec. 29, 2049-(Sep. 17, 2024) 992,150 1,040,916
HSBC USA Inc.380,000 2.38% due Feb. 13, 2015 378,314 441,697
1,600,000 5.00% due Sep. 27, 2020 1,937,634 2,041,592Humana Inc. (callable)
950,000 4.95% due Oct. 1, 2044-(Apr. 1, 2044) 1,037,454 1,155,021Hyundai Auto Receivables Trust
4,526,985 0.56% due Jul. 17, 2017 5,084,505 5,258,595Hyundai Auto Receivables Trust 2011-B
45,277 1.65% due Feb. 15, 2017 50,755 52,643IndyMac INDX Mortgage Loan Trust(callable)
46,798 4.80% due Dec. 25, 2035-(Jun. 25, 2025) 55,417 44,247Intesa Sanpaolo
3,655,000 2.38% due Jan. 13, 2017 3,999,056 4,278,433JP Morgan & Co
1,265,000 5.46% due Mar. 15, 2017 1,497,166 1,533,458Jp Morgan Chase Comm Mort4.911% 071542
470,000 4.91% due Jul. 15, 2042 529,402 558,439JPMorgan Chase & Co.
1,105,000 3.88% due Sep. 10, 2024 1,196,863 1,291,524JPMorgan Chase Commercial Mortgage
545,000 4.99% due Sep. 12, 2037 604,811 643,058JPMorgan Chase Commercial MortgageSecurities Corp.
331,457 6.80% due Apr. 15, 2035 370,999 387,000232 4.70% due Jul. 15, 2042 231 271
935,000 5.79% due Jun. 15, 2049 1,067,702 1,134,95671,010 5.19% due Jan. 12, 2037 71,006 82,315
390,000 5.20% due Jul. 15, 2041 409,833 451,503410,073 5.81% due May 12, 2016 453,086 500,863495,000 5.88% due Feb. 12, 2051 613,756 634,091
JPMorgan Mortgage Trust (callable)96,667 2.54% due Sep. 25, 2035-(Jun. 25, 2018) 107,034 108,18014,699 5.24% due Jul. 25, 2035-(Sep. 25, 2020) 14,763 17,082
JPMorgan Mortgage Trust490,185 2.47% due May 25, 2034 521,064 590,953749,973 2.23% due Jul. 25, 2035 840,442 870,286150,830 2.54% due Oct. 25, 2036 131,370 153,184
Kimberly-Clark Corporation75,000 7.50% due Nov. 1, 2018 90,835 105,366
Kinder Morgan, Inc. (callable)1,255,000 4.30% due Jun. 1, 2025-(Mar. 1, 2025) 1,411,390 1,466,152
La Paz County Industrial DevelopmentAuthority
765,000 7.00% due Mar. 1, 2034 796,179 886,715
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
LB-UBS Commercial Mortgage Trust1,639,500 4.79% due Jul. 15, 2040 1,841,061 1,936,939
515,000 4.90% due Jul. 15, 2040 590,379 599,281Lehman Brothers Holdings Inc.
40,000 6.88% due May 02, 2018 40,417 4,745Life Technologies Corporation
2,490,000 6.00% due Mar. 1, 2020 3,134,576 3,300,586Lloyds Banking Group plc
1,665,000 7.50% due Jun. 27, 2024 1,925,385 1,971,084Lorillard Tobacco Company
1,412,000 6.88% due May 1, 2020 1,808,577 1,938,391MacDermic Inc.
1,989,899 4.00% due Jun. 7, 2020 2,145,854 2,268,143Master Adjustable Rate Mortgages Trust(callable)
12,562 2.45% due Dec. 25, 2033-(Jun. 25, 2014) 11,287 13,959MASTR Adjustable Rate Mortgage Trust
635,052 2.63% due Feb. 25, 2036 664,802 719,583Medtronic, Inc. (callable)
1,230,000 2.75% due Apr. 1, 2023-(Jan. 1, 2023) 1,325,032 1,404,822Merrill Lynch Mortgage Investors Trust
86,725 2.52% due Dec. 25, 2034 76,063 99,847Merrill Lynch Mortgage Investors Trust,Series 2005
920,457 0.38% due Feb. 25, 2036 944,051 1,003,532Merrill Lynch Mortgage Trust
2,729,400 5.11% due Jul. 12, 2038 3,027,228 3,225,329202,864 5.69% due Feb. 12, 2051 210,805 257,504
Merrill Lynch Mortgage Trust 20061,000,000 5.78% due Aug. 12, 2043 1,162,622 1,235,186
MetLife, Inc. (callable)1,800,000 10.75% due Aug. 1, 2039-(2034) 2,849,641 3,412,282
Morgan Stanley440,000 0.71% due Oct. 15, 2015 393,561 507,603
1,185,000 3.70% due Oct. 23, 2024 1,334,647 1,410,1461,445,000 4.35% due Sep. 8, 2026 1,590,954 1,698,760
Morgan Stanley Bank of America MerrillLynch Trust 2014-C199
1,135,000 3.10% due Dec. 15, 2047 1,337,291 1,359,451Morgan Stanley Capital I
1,850,000 5.37% due Dec. 15, 2016 2,229,546 2,269,830Morgan Stanley Capital I Trust
367,314 5.65% due Jun. 11, 2042 434,467 463,791705,000 5.20% due Aug. 13, 2042 790,614 832,107555,000 5.49% due Mar. 12, 2044 617,197 665,108
1,230,766 5.59% due Apr. 12, 2049 1,370,123 1,438,962299,291 5.67% due Apr. 15, 2049 369,422 374,129
Morgan Stanley Dean Witter Capital19,243 6.79% due Jul. 15, 2033 18,941 22,424
Mortgage Linked Amort Note2.06% 011522
1,055,588 2.06% due Jan. 15, 2022 1,185,885 1,246,549Municipal Electric Authority of Georgia
660,000 6.64% due Apr. 1, 2057 716,611 1,016,1721,500,000 7.06% due Apr. 1, 2057 1,698,121 2,054,079
NCUA Guaranteed Notes1,099,115 1.84% due Oct. 7, 2020 1,137,977 1,283,323
Next Generation Network202,896 2.40% due Dec. 8, 2020 201,492 237,356
Nissan Auto Lease Trust6,740,000 0.74% due Sep. 17, 2018 7,545,327 7,830,898
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
Nissan Auto Receivables 2011-A OwnerTrust
1,780,260 1.94% due Sep. 15, 2017 2,019,922 2,074,612Nissan Auto Receivables 2011-B OwnerTrust
116,865 0.95% due Feb. 16, 2016 129,124 135,821Nokia Corporation
1,910,000 6.63% due May 15, 2039 2,101,088 2,467,118Nomura Asset Acceptance Corporation
9,610 4.79% due Mar. 25, 2035 12,058 11,167Nomura Holdings, Inc.
1,970,000 2.00% due Sep. 13, 2016 2,101,020 2,308,366Numericable U.S. LLC
804,231 4.50% due Apr. 23, 2020 870,394 931,641695,769 4.50% due Apr. 23, 2020 753,009 805,997
NVR Inc. (callable)1,290,000 3.95% due Sep. 15, 2022-(Jun. 15, 2022) 1,341,232 1,565,815
O’Reilly Automotive, Inc.560,000 3.80% due Sep. 1, 2022 638,050 668,673
Oracle Corporation1,170,000 2.25% due Oct. 8, 2019 1,247,345 1,366,968
PacifiCorp (callable)1,520,000 2.95% due Feb. 1, 2022-(Nov. 1, 2021) 1,657,915 1,790,943
Perrigo Company PLC (callable)395,000 3.90% due Dec. 15, 2024-(Sep. 15, 2024) 444,138 463,663
Petroleos Mexicanos1,000,000 8.63% due Feb. 1, 2022 1,344,780 1,424,6781,285,000 6.38% due Jan. 23, 2045 1,701,107 1,707,671
Pfizer Inc.1,980,000 6.20% due Mar. 15, 2019 2,547,492 2,680,066
PNC Bank, N.A.1,160,000 3.30% due Oct. 30, 2024 1,302,765 1,375,240
Regency Centers LP95,000 5.88% due Jun. 15, 2017 98,153 121,350
Renaissance Home Equity Loan Trust155,177 5.61% due May 25, 2036 142,628 146,101167,049 5.68% due Jun. 25, 2037 112,647 109,139
Republic Of Chile3,320,000 3.13% due Mar. 27, 2025 3,752,709 3,829,379
Republic of Hungary1,200,000 5.38% due Mar. 25, 2024 1,319,098 1,512,707
Residential Asset Mortgage Products, Inc.(callable)
243 7.00% due Nov. 25, 2031 344 285Rio Tinto Finance USA PLC
815,000 1.38% due Jun. 17, 2016 826,472 950,255Rockwood Specialties Group Inc. (callable)
1,510,000 4.63% due Oct. 15, 2020-(2015) 1,678,468 1,808,916Royal Bank of Scotland
1,480,000 5.13% due May 28, 2024 1,603,824 1,745,857RSB Bondco LLC
34,288 5.72% due Apr. 1, 2018 37,147 40,842Santander Drive Auto Receivables Trust
30,503 2.09% due Aug. 15, 2016 33,991 35,4342,444,891 1.83% due Mar. 15, 2017 2,812,700 2,841,5611,137,083 0.62% due Jun. 15, 2017 1,243,910 1,320,5342,764,351 0.66% due Jun. 15, 2017 3,029,242 3,210,4291,207,393 0.70% due Sep. 15, 2017 1,300,858 1,402,4743,985,775 0.70% due Oct. 16, 2017 4,443,196 4,629,2951,775,000 1.16% due Jan. 15, 2019 1,968,442 2,062,4871,050,000 1.82% due May 15, 2019 1,148,241 1,218,902
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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31
Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
Santander Drive Auto ReceivablesTrust 2012-5
62,189 0.83% due Dec. 15, 2016 68,148 72,219Seagate HDD Cayman
905,000 4.75% due Jun. 1, 2023 1,027,676 1,090,196Sequoia Mortgage Trust (callable)
133,327 0.47% due Dec. 20, 2034-(Feb. 20, 2018) 124,721 149,482Sequoia Mortgage Trust (Floating Rate)
529,859 0.69% due Oct. 20, 2034 496,711 599,654SLM Student Loan Trust
1,390,101 0.42% due Mar. 15, 2023 1,338,869 1,604,841Smart Trust
1,446,501 0.97% due Mar. 14, 2017 1,418,286 1,683,412Sprint Capital Corporation
3,285,000 8.75% due Mar. 15, 2032 3,901,513 3,734,100Structured Adjustable Rate Mortgage Loan(callable)
7,920 2.59% due Dec. 25, 2034-(Sep. 25, 2016) 9,552 8,483Structured Asset Mortgage Investments Inc.
526,565 0.84% due May 19, 2035 514,089 589,711Structured Asset Securities Corporation(callable)
196,097 2.59% due Nov. 25, 2033-(Oct. 25, 2020) 190,387 220,903Sunguard Availability Service Capital Inc.
1,318,358 6.00% due Mar. 31, 2019 1,412,042 1,370,071Symantec Corporation (callable)
550,000 2.75% due Jun. 15, 2017-(May 15, 2017) 615,972 648,667Telefonos de Mexico, S.A.B. de C.V.
290,000 5.50% due Jan. 27, 2015 328,133 337,444Tennessee Gas Pipeline
490,000 8.38% due Jun. 15, 2032 656,899 769,633Teva Pharmaceutical Finance IV B.V.
1,110,000 3.65% due Nov. 10, 2021 1,295,025 1,322,680Time Warner Cable Inc.
1,225,000 5.00% due Feb. 1, 2020 1,492,354 1,571,261965,000 4.88% due Mar. 15, 2020 1,166,889 1,236,397
1,400,000 6.55% due May 1, 2037 1,884,757 2,089,439Total Capital SA
1,740,000 2.13% due Aug. 10, 2018 1,858,788 2,032,228Transocean Ltd.
505,000 6.38% due Dec. 15, 2021 601,143 544,359Twenty-First Century Fox Inc.
815,000 6.40% due Dec. 15, 2035 1,198,017 1,243,133Tyco Electronics Group SA
355,000 6.55% due Oct. 1, 2017 386,475 465,123United States Treasury Notes
4,960,000 0.50% due Nov. 30, 2016 5,652,367 5,744,2643,455,000 1.00% due Dec. 15, 2017 3,997,776 4,001,818
13,112,500 1.50% due Nov. 30, 2019 14,857,619 15,127,7652,370,000 2.00% due Oct. 31, 2021 2,689,260 2,760,1002,455,000 1.88% due Nov. 30, 2021 2,788,640 2,836,185
26,285,000 2.25% due Nov. 15, 2024 29,644,661 30,758,3619,105,000 3.13% due Aug. 15, 2044 10,511,719 11,405,553
UnitedHealth Group Incorporated (callable)990,000 3.88% due Oct. 15, 2020-(Jul. 15, 2020) 1,164,917 1,231,106
Vale Overseas Limited665,000 4.38% due Jan. 11, 2022 670,376 741,783
1,990,000 8.25% due Jan. 17, 2034 2,609,082 2,746,463Vale SA
885,000 5.63% due Sep. 11, 2042 822,391 962,285Validus Holdings Ltd.
940,000 8.88% due Jan. 26, 2040 1,372,893 1,525,561
FaceValue ($)/Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)
Verizon Communications Inc.5,265,000 5.15% due Sep. 15, 2023 5,968,790 6,772,4021,130,000 6.55% due Sep. 15, 2043 1,646,388 1,687,250
Verizon Communications Inc. (callable)12,050,000 1.48% due Feb. 15, 2054-(2019) 3,346,519 3,668,699
795,000 4.40% due Nov. 1, 2034-(May 1, 2034) 877,813 923,098Volkswagen Auto Loan Enhanced Trust
869,233 0.85% due Aug. 22, 2016 948,202 1,010,502Wachovia Capital Trust III (callable)
1,775,000 5.57% due Oct. 17, 2014 (Mar/29/2049) 1,835,684 1,991,823Walgreens Boots Alliance Inc. (callable)
945,000 3.80% due Nov. 18, 2024-(Aug. 18, 2024) 1,077,210 1,122,342640,000 4.80% due Nov. 18, 2044-(May 18, 2044) 731,111 791,544
WaMu Mortgage Pass-Through Certificates(Floating Rate)
419,731 2.30% due Aug. 25, 2033 485,833 483,327Washington Mutual, Inc.
197,792 2.42% due Oct. 25, 2033 186,762 234,435Watson Pharmaceuticals, Inc.
1,915,000 3.25% due Oct. 1, 2022 2,092,501 2,172,693Weather Channel TL 2L 06/20/20
1,200,000 7.00% due Jun. 26, 2020 1,299,154 1,339,218Weatherford International Ltd.
2,055,000 5.13% due Sep. 15, 2020 2,407,358 2,331,532Wells Fargo & Company
1,265,000 4.10% due Jun. 3, 2026 1,386,848 1,509,7281,085,000 4.65% due Nov. 4, 2044 1,209,116 1,314,938
Wells Fargo Mortgage Backed SecuritiesTrust (callable)
111,995 2.61% due Sep. 25, 2034-(Oct. 25, 2018) 103,314 131,37485,225 2.61% due Mar. 25, 2035-(Sep. 25, 2019) 75,298 99,36054,843 2.61% due Oct. 25, 2035-(Feb. 25, 2019) 56,164 56,147
118,880 6.00% due Jun. 25, 2036-(Sep. 25, 2018) 110,233 132,98196,915 5.02% due Mar. 25, 2036-(Sep. 25, 2015) 99,613 111,03937,282 2.61% due Jul. 25, 2036-(Nov. 25, 2020) 28,513 40,956
Wells Fargo Mortgage Backed SecuritiesTrust
17,641 6.00% due Jul. 25, 2037 17,969 19,919WF-RBS Commercial Mortgage Trust
1,580,000 3.66% due Mar. 15, 2047 1,805,889 1,921,899Williams Partners LP
927,000 7.25% due Feb. 1, 2017 1,144,725 1,195,520Willis Group Holdings Limited
360,000 4.13% due Mar. 15, 2016 375,769 430,903World Financial Network Credit Card MasterTrust
1,930,000 1.54% due Aug. 15, 2021 2,192,080 2,238,406Yum! Brands, Inc.
580,000 4.25% due Sep. 15, 2015 623,218 688,697
608,980,146 643,816,663
TOTAL BOND AND DEBENTUREINSTRUMENTS 644,202,204 679,432,487
EQUITIES – 0.0%3 NRG Energy, Inc. 69 94
TOTAL INVESTMENT PORTFOLIO 644,202,273 679,432,581
Currency Forward Contracts – 0.1% 515,532OTHER ASSETS, LESS LIABILITIES – (8.2%) (51,602,870)
NET ASSETS – 100.0% 628,345,243
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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32
Scotia Private American Core-Plus Bond Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
CURRENCY FORWARD CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation /(Depreciation)
Jan. 30, 2015 Canadian Dollar 572,794,397 U.S. Dollar 492,216,152 572,284,472 509,925Jan. 30, 2015 U.S. Dollar 1,378,872 Australian Dollar 1,696,649 1,604,181 (4,005)Jan. 30, 2015 U.S. Dollar 4,911,538 Mexican Peso 72,350,886 5,683,369 16,455Jan. 30, 2015 U.S. Dollar 1,193,965 Swedish Krona 9,366,058 1,392,435 (6,843)
515,532
The currency forward contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A- by Standard & Poor’s.
Portfolio Advisor: Logan Circle Partners, L.P.
The accompanying notes are an integral part of these financial statements.
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33
Scotia Private American Core-Plus Bond Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $415,211,502 $272,767,768
Revaluation of Investments at FVTPL 465,704 306,055
Net assets attributable to holders of redeemable units $415,677,206 $273,073,823
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $(1,726,281)
Revaluation of Investments at FVTPL 159,649
Increase (decrease) in net assets attributable to holders of redeemable units $(1,566,632)
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
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 fixed incomeinstruments.
Interest Rate Exposure* December 31, 2014 December 31, 2013 January 1, 2013
Less than 1 year $ 11,125,215 $ 8,223,498 $ 14,447,286
1-3 years 112,808,944 66,270,524 41,228,406
3-5 years 72,762,107 33,968,713 31,436,667
5-10 years 151,593,803 109,293,411 67,916,448
> 10 years 331,142,418 202,665,309 125,867,722
Total $679,432,487 $420,421,455 $280,896,529
* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying Funds, and preferred shares where applicable.
As at December 31, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yieldcurve and all other variables held constant, net assets attributable to holders of redeemable units would have decreased orincreased, respectively, by $10,151,236 or approximately 1.6% (December 31, 2013 – $6,728,192 or approximately 1.6%, January 1,2013 – $4,266,507 or approximately 1.6%). In practice, actual results may differ from this sensitivity analysis and the difference couldbe material.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoB
ON
DFU
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The accompanying notes are an integral part of these financial statements.
34
Scotia Private American Core-Plus Bond Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
illustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 145,526,842 23.2 14,552,684 2.3
New Zealand Dollar 8,520,208 1.4 852,021 0.1
British Pound 5,482,455 0.9 548,246 0.1
European Euro 4,626,438 0.7 462,644 0.1
Indian Rupee 3,727,835 0.6 372,784 0.1
Thai Baht 1,550,488 0.2 155,049 –
Mexican Peso 1,490,727 0.2 149,073 –
Malaysian Ringgit 1,316,260 0.2 131,626 –
Indonesian Rupiah 644,011 0.1 64,401 –
Swedish Krona 110,957 – 11,096 –
Hungary Forint 2 – – –
Australian Dollar (41,268) – (4,127) –
Total 172,954,955 27.5 17,295,497 2.7
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 107,499,762 25.9 10,749,976 2.6
Mexican Peso 6,293,388 1.5 629,339 0.2
New Zealand Dollar 4,961,418 1.2 496,142 0.1
Russian Ruble 3,215,645 0.8 321,565 0.1
Thai Baht 2,995,727 0.7 299,573 0.1
Uraguayan Peso 2,293,380 0.6 229,338 0.1
Hungary Forint 1,860,740 0.4 186,074 –
Colombia Peso 1,717,790 0.4 171,779 –
Swedish Krona 1,502,946 0.4 150,295 –
Indonesian Rupiah 1,214,712 0.3 121,471 –
British Pound 1,056,019 0.3 105,602 –
Norwegian Krone 1,029,134 0.2 102,913 –
Philippines Peso 1,026,987 0.2 102,699 –
South African Rand 848,528 0.2 84,853 –
Polish Zloty 751,268 0.2 75,127 –
Japanese Yen 76,757 – 7,676 –
Swiss Franc 8,341 – 834 –
Turkish Lira 0 – – –
Australian Dollar (49,842) – (4,984) –
European Euro (82,010) – (8,201) –
Total 138,220,691 33.3 13,822,071 3.2
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The accompanying notes are an integral part of these financial statements.
35
Scotia Private American Core-Plus Bond Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 50,137,851 18.4 5,013,785 1.8
Mexican Peso 5,302,211 1.9 530,221 0.2
Hungary Forint 2,446,223 0.9 244,622 0.1
Uraguayan Peso 1,656,994 0.6 165,699 0.1
Colombia Peso 1,178,733 0.4 117,873 –
Thai Baht 1,162,416 0.4 116,242 –
New Zealand Dollar 1,161,334 0.4 116,133 –
Chile Peso 868,950 0.3 86,895 –
Philippines Peso 749,748 0.3 74,975 –
Indonesian Rupiah 631,353 0.2 63,135 –
Australian Dollar 536,582 0.2 53,658 –
Norwegian Krone 207,144 0.1 20,714 –
Peruvian New Sol 168,410 0.1 16,841 –
Polish Zloty 73,472 – 7,347 –
Swiss Franc 7,612 – 761 –
South African Rand 683 – 68 –
Turkish Lira 0 – – –
Swedish Krona (15,053) – (1,505) –
Brazilian Real (27,018) – (2,702) –
British Pound (49,393) – (4,939) –
European Euro (85,597) – (8,560) –
Japanese Yen (1,518,057) (0.6) (151,806) (0.1)
Total 64,594,597 23.6 6,459,457 2.1
iii) Other price risk
The Fund’s significant market risks have been discussed in the previous sections. As at December 31, 2014, December 31, 2013 andJanuary 1, 2013, the investments of this Fund were not subject to significant other price risk as the Fund did not hold any significantequities or commodities.
iv) Credit risk
The table below summarizes the credit ratings of any fixed income securities and preferred securities, excluding cash and moneymarket instruments, held by the Fund.
December 31, 2014 December 31, 2013 December 31, 2012
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Bond Rating
A- to AAA+ 73.7 79.7 76.4 77.1 75.8 78.0
B- to BBB+ 25.9 28 22.8 23.2 22.6 23.3
C- to CCC+ 0.4 0.4 0.6 0.6 1.2 1.2
D- to DDD+ – – 0.1 0.1 0.1 0.1
Unrated – – 0.1 0.1 0.3 0.3
Total 100.0 108.1 100.0 101.1 100.0 102.9
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The accompanying notes are an integral part of these financial statements.
36
Scotia Private American Core-Plus Bond Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $133,889,210 $ – $86,604,740 $ – $53,342,709
Unrealized loss on currency forward contracts – 10,848 – 904,317 – 357,418
Redeemable units 628,345,243 – 415,677,206 – 273,073,823 –
$628,345,243 $133,900,058 $415,677,206 $87,509,057 $273,073,823 $53,700,127
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Bond and Debenture Instruments
Australian Dollar 0.2 0.8 0.4
British Pound 0.8 0.3 0.7
Chile Peso – – 0.3
Columbia Peso – 0.4 0.4
European Euro 0.7 0.8 1.1
Hungarian Forint – 0.4 0.4
India Rupee 0.6 – –
Indonesian Rupiah 0.1 0.3 0.2
Japanese Yen – 0.2 0.4
Malaysian Ringgit 0.2 – –
Mexican Peso 1.1 1.5 1.4
New Zealand Dollar 1.5 1.2 0.4
Norwegian Krone – 0.6 0.4
Peruvian Nuevo Sol – – 0.1
Philippine Peso – 0.3 0.3
Polish Zloty – – 0.7
Russian Ruble – 0.8 –
South African Rand – 0.2 –
Swedish Krona 0.2 0.4 –
Thai Baht 0.2 0.7 0.4
Uraguayan Peso – 0.6 0.6
U.S. Dollar 102.5 91.6 94.7
Equities 0.0 0.0 0.0
Currency Forward Contracts 0.1 (0.2) 0.1
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The accompanying notes are an integral part of these financial statements.
37
Scotia Private American Core-Plus Bond Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $94 $ – $ – $ 94
Bond and Debenture Instruments – 679,432,487 – 679,432,487
Currency Forward Contracts – Assets – 526,380 – 526,380
94 679,958,867 – 679,958,961
Currency Forward Contracts – Liabilities – (10,848) – (10,848)
$94 $679,948,019 $ – $679,948,113
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $92 $ – $ – $ 92
Bond and Debenture Instruments – 420,421,363 – 420,421,363
Currency Forward Contracts – Assets – 27,378 – 27,378
92 420,448,741 – 420,448,833
Currency Forward Contracts – Liabilities – (904,317) – (904,317)
$92 $419,544,424 $ – $419,544,516
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $69 $ – $ – $ 69
Bond and Debenture Instruments – 280,896,460 – 280,896,460
Currency Forward Contracts – Assets – 669,099 – 669,099
69 281,565,559 – 281,565,628
Currency Forward Contracts – Liabilities – (357,418) – (357,418)
$69 $281,208,141 $ – $281,208,210
Transfer Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)The following table presents offsetting of financial assets and liabilites and collateral amounts that would occur if future events, suchas bankruptcy or termination of contracts were to arise. No amounts were offset in the financial statements.
December 31, 2014
Financial assets – by typeGross amount
of assetsMaster netting
offsetCollateralpledged Net Amount
Currency forward contracts $526,380 $(6,843) $ – $519,537
Swap contracts – – – –
Total $526,380 $(6,843) $ – $519,537
Financial liabilities – by typeGross amountof liabilities
Master nettingoffset
Collateralpledged Net Amount
Currency forward contracts $ 10,848 $(6,843) $ – $ 4,005
Swap contracts – – – –
Total $ 10,848 $(6,843) $ – $ 4,005
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The accompanying notes are an integral part of these financial statements.
38
Scotia Private American Core-Plus Bond Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
Financial assets – by typeGross amount
of assetsMaster netting
offsetCollateralpledged Net Amount
Currency forward contracts $ 27,378 $ (27,378) $ – $ –
Swap contracts – – – –
Total $ 27,378 $ (27,378) $ – $ –
Financial liabilities – by typeGross amountof liabilities
Master nettingoffset
Collateralpledged Net Amount
Currency forward contracts $904,317 $ (27,378) $ – $876,939
Swap contracts – – – –
Total $904,317 $ (27,378) $ – $876,939
January 1, 2013
Financial assets – by typeGross amount
of assetsMaster netting
offsetCollateralpledged Net Amount
Currency forward contracts $669,099 $(249,300) $ – $419,799
Swap contracts – – – –
Total $669,099 $(249,300) $ – $419,799
Financial liabilities – by typeGross amountof liabilities
Master nettingoffset
Collateralpledged Net Amount
Currency forward contracts $357,418 $(249,300) $ – $108,118
Swap contracts – – – –
Total $357,418 $(249,300) $ – $108,118
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 9.29 9.29 8.86 8.86
Series F 9.49 9.49 9.05 9.05
Series I 9.57 9.57 9.13 9.13
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The accompanying notes are an integral part of these financial statements.
39
Scotia Private Strategic Balanced Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $42,190,689 $32,931,949 $32,369,057Unrealized gain on currency spot
contracts 1 – –Cash 277,601 615,581 582,498Accrued investment income 84,930 66,688 84,688Receivable for securities sold 4,275 33,419 –Subscriptions receivable 38,800 – 16,876
42,596,296 33,647,637 33,053,119
LIABILITIESCurrent liabilitiesPayable for securities purchased 2,140,284 – 1,514Redemptions payable 119 674 7,884Unrealized loss on currency spot
contracts – – 4
2,140,403 674 9,402
Net Assets attributable to holders ofredeemable units $40,455,893 $33,646,963 $33,043,717
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $40,072,429 $33,060,193 $32,715,640Series F Units $ 383,464 $ 586,770 $ 328,077
UNITS OUTSTANDINGPinnacle Series Units 2,315,056 2,022,256 2,218,038Series F Units 21,880 35,496 21,991
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 17.31 $ 16.35 $ 14.75Series F Units $ 17.53 $ 16.53 $ 14.92
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 531,597 $ 448,899Interest for distribution purposes 385,059 373,442Net realized gain (loss) on non-derivative financial assets 1,314,808 569,345Net gain (loss) foreign exchange (484) 1,964Change in unrealized appreciation (depreciation) of non-
derivative financial assets 672,979 2,819,786Change in unrealized appreciation (depreciation) of currency
spots 1 4
Net gain (loss) on investments 2,903,960 4,213,440Securities lending 6,079 8,580Other income 68 98
Total income (loss) 2,910,107 4,222,118
EXPENSESManagement fees (note 5) 6,736 5,344Administration fees (note 6) 43,361 –Harmonized Sales Tax/Goods and Services Tax 12,256 10,078Audit fees 898 548Independent Review Committee fees 100 934Custodian fees 9,264 24,183Filing fees 10,213 15,377Legal fees 452 42Unitholder reporting costs 5,475 4,178Unitholder administration and service fees 38,204 52,842Overdraft charges – 1Foreign withholding taxes/tax reclaims 15,420 6,731Transaction costs 17,043 9,457
Total expenses 159,422 129,715Absorbed expenses (2,274) (2,555)
Net expenses 157,148 127,160
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $2,752,959 $4,094,958
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES
Pinnacle Series Units $2,710,045 $4,031,748Series F Units $ 42,914 $ 63,210
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*
Pinnacle Series Units $ 1.26 $ 1.95Series F Units $ 1.10 $ 1.83
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 2,156,191 2,065,555Series F Units 38,903 34,451
* 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: Gryphon Investment Counsel Inc.
The accompanying notes are an integral part of these financial statements.
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Scotia Private Strategic Balanced Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Pinnacle Series Units $33,060,193 $32,715,640Series F Units 586,770 328,077
33,646,963 33,043,717
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 2,710,045 4,031,748Series F Units 42,914 63,210
2,752,959 4,094,958
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (765,846) (718,455)Series F Units (7,189) (7,686)
(773,035) (726,141)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 11,142,867 2,838,965Series F Units 131,099 196,687
Reinvested distributionsPinnacle Series Units 758,220 717,789Series F Units 5,931 6,482
Payments on redemptionPinnacle Series Units (6,833,050) (6,525,494)Series F Units (376,061) –
4,829,006 (2,765,571)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 7,012,236 344,553Series F Units (203,306) 258,693
6,808,930 603,246
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 40,072,429 33,060,193Series F Units 383,464 586,770
$40,455,893 $33,646,963
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 2,752,959 $ 4,094,958Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (1,314,808) (569,345)
Net realized (gain) loss foreign exchange on cash 484 (1,964)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (672,979) (2,819,786)Change in unrealized (appreciation) depreciation of
currency spot contracts (1) (4)Purchases of non-derivative financial assets (22,079,364) (10,118,707)Proceeds from sale of non-derivative financial assets 16,960,796 12,900,556Transaction costs 17,043 9,457Accrued investment income (18,242) 18,000
Net cash provided by (used in) operating activities (4,354,112) 3,513,165
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 11,235,166 3,052,528Amounts paid on redemption of redeemable units (7,209,666) (6,532,704)Distributions to unitholders of redeemable units (8,884) (1,870)
Net cash provided by (used in) financing activities 4,016,616 (3,482,046)Net realized (gain) loss foreign exchange on cash (484) 1,964Net increase (decrease) in cash (337,496) 31,119Cash (Bank Indebtedness) at beginning of period 615,581 582,498
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 277,601 $ 615,581
Interest received(1) 372,941 384,918Dividends received, net of withholding taxes(1) 510,052 448,692
(1) Classified as operating items.
Portfolio Advisor: Gryphon Investment Counsel Inc.
The accompanying notes are an integral part of these financial statements.
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Scotia Private Strategic Balanced Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
CANADIAN EQUITIES – 43.0%Energy – 6.5%
16,800 Canadian Natural Resources Ltd. 558,809 603,45622,040 Cenovus Energy Inc. 641,694 528,2992,085 EnCana Corporation 40,872 33,7147,970 Husky Energy Inc. 239,062 219,175
14,091 Lightstream Resources Ltd. 223,761 16,7685,275 MEG Engery Corporation 165,786 103,1267,005 Mullen Group Limited 172,865 149,277
24,780 Suncor Energy, Inc. 865,833 914,3825,110 Trican Well Service Ltd. 89,147 28,4638,990 Trinidad Drilling Ltd. 65,617 46,748
3,063,446 2,643,408
Materials – 4.8%1,445 Agrium Inc. 91,260 158,950
17,300 Canexus Corp. 83,703 56,39829,839 First Quantum Minerals Ltd. 609,716 492,64217,140 HudBay Minerals, Inc. 152,118 173,45731,225 Lundin Mining Corporation 229,735 178,60714,400 Potash Corporation of Saskatchewan Inc. 586,925 591,40818,720 Teck Resources Ltd., Class B 482,719 297,274
2,236,176 1,948,736
Industrials – 4.8%16,755 CAE, Inc. 176,655 252,6658,050 Canadian National Railway Company 421,728 644,1616,460 Finning International Inc. 152,318 162,986
23,370 Horizon North Logistics Inc. 172,126 61,6978,085 Newalta Corp. 166,600 142,6196,375 SNC-Lavalin Group Inc. 322,816 282,4766,775 Stantec Inc. 110,205 216,3265,710 WSP Global Inc. 198,835 199,051
1,721,283 1,961,981
Consumer Discretionary – 4.5%2,050 Dollarama Inc. 92,200 121,7708,520 Gildan Activewear Inc. 220,834 559,7645,645 Magna International Inc. 320,887 710,649
14,820 Martinrea International Inc. 169,807 153,6838,765 Quebecor Inc., Class B 114,222 279,954
917,950 1,825,820
Consumer Staples – 3.4%3,050 AGT Food and Ingredients Inc. 84,156 83,997
17,660 Alimentation Couche-Tard Inc., Class B 169,191 859,8657,415 Jean Coutu Group (PJC) Inc., The, Class A 105,897 209,9193,645 Loblaw Companies Limited 173,265 226,610
532,509 1,380,391
Financials – 15.1%11,535 Bank of Montreal 609,404 947,94615,745 Bank of Nova Scotia, The 777,272 1,044,0505,910 Canadian Imperial Bank of Commerce 419,561 590,0548,100 Home Capital Group Inc. 254,463 388,719
23,915 Manulife Financial Corporation 612,169 530,43516,905 Royal Bank of Canada 876,485 1,356,45522,515 Toronto-Dominion Bank, The 932,778 1,249,806
4,482,132 6,107,465
Information Technology – 3.9%22,550 Celestica Inc. 235,058 307,80813,485 CGI Group Inc., Class A 199,325 597,25112,610 Descartes Systems Group Inc., The 153,911 217,523
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
CANADIAN EQUITIES (cont’d)Information Technology (cont’d)
4,940 Open Text Corporation 154,715 333,99314,880 Pure Technologies Ltd. 79,935 109,963
822,944 1,566,538
TOTAL CANADIAN EQUITIES 13,776,440 17,434,339
FOREIGN EQUITIES – 17.1%United States – 8.4%Materials – 1.2%
2,470 Cytec Industries Inc. 134,984 132,3433,210 Dow Chemical Company, The 156,786 169,8131,125 Praxair, Inc. 123,648 169,200
415,418 471,356
Industrials – 2.2%2,055 Danaher Corporation 125,031 204,4031,035 Dover Corporation 63,479 86,1441,410 Honeywell International Inc. 96,424 163,5321,850 Stanley Black & Decker Inc. 170,648 206,2222,380 Wabtec Corporation 108,786 239,989
564,368 900,290
Consumer Discretionary – 1.0%2,170 Royal Caribbean Cruises Ltd. 166,940 207,5822,585 TJX Companies, Inc., The 89,412 205,732
256,352 413,314
Health Care – 1.2%1,685 Gilead Sciences, Inc. 202,696 184,3191,560 Johnson & Johnson 118,020 189,3111,635 ResMed Inc. 59,851 106,397
380,567 480,027
Financials – 1.2%1,840 American Express Company 110,939 198,6382,055 JPMorgan Chase & Co. 97,037 149,2782,025 MetLife, Inc. 118,745 127,112
326,721 475,028
Information Technology – 1.6%2,520 Cognizant Technology Solutions Corporation 96,605 154,0026,640 Corning Incorporated 114,961 176,692
380 Mettler-Toledo International Inc. 72,650 133,5142,255 Tyco Electronics Ltd. 140,934 165,586
425,150 629,794
TOTAL UNITED STATES EQUITIES 2,368,576 3,369,809
Belgium – 0.1%622 UCB SA 48,941 54,769
Denmark – 0.1%2,165 GN Store Nord A/S 56,880 54,693
France – 1.5%1,492 Airbus Group NV 63,520 85,9801,170 Atos Origin SA 70,028 107,4241,916 BNP Paribas 121,640 130,637
730 Schneider Electric SA 44,383 61,544838 Technip SA 68,697 58,060808 Teleperformance 34,287 63,742
1,663 Total SA 105,237 99,485
507,792 606,872
Portfolio Advisor: Gryphon Investment Counsel Inc.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Strategic Balanced Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
FOREIGN EQUITIES (cont’d)Germany – 1.0%
3,546 Deutsche Lufthansa AG 70,990 68,9013,497 Fresenius SE & Co. KGaA 119,030 211,881
617 MTU Aero Engines Holding AG 32,055 62,507637 Wacker Chemie AG 80,302 81,076
302,377 424,365
Hong Kong – 0.4%13,000 AIA Group Ltd. 72,821 83,081
144,000 Global Brands Group Holding Ltd. 37,415 32,66814,400 Kingboard Chemicals Holdings Limited 40,228 28,040
150,464 143,789
Japan – 2.6%2,000 Bridgestone Corporation 55,866 80,6571,200 Canon Inc. 42,958 44,232
600 Daikin Industries, Ltd. 42,902 44,9091,200 Hamamatsu Photonics KK 32,582 66,545
10,000 Hitachi, Ltd. 73,159 84,9171,000 Honda Motor Co., Ltd. 34,769 33,7473,000 Komatsu Ltd. 62,121 77,1832,500 Nabtesco Corporation 56,102 69,6511,200 NIDEC Corporation 49,632 90,328
800 Nitto Denko Corporation 46,726 51,9194,500 ORIX Corporation 71,053 65,2831,800 Seven & I Holdings Co., Ltd. 55,392 75,3482,400 Terumo Corporation 62,101 63,432
10,000 Toray Industries Inc. 72,071 92,9443,000 Toto Ltd. 21,715 40,4941,200 Toyota Motor Corporation 77,123 86,843
856,272 1,068,432
Netherlands – 0.8%1,232 Heineken NV 89,221 101,547
10,043 ING Groep NV 111,848 150,8734,223 Koninklijke Ahold NV 76,049 87,099
277,118 339,519
Spain – 0.3%3,592 Industria de Diseno Textil SA 55,650 119,416
Sweden – 0.4%1,473 Hexagon AB 24,480 52,8698,384 Telefonaktiebolaget LM Ericsson, Class B 96,676 117,847
121,156 170,716
Switzerland – 0.9%1,217 Adecco SA 73,069 96,731
304 Dufry AG 54,495 52,28854 Galenica AG 34,508 49,628
1,510 Novartis AG 93,458 161,128
255,530 359,775
Number ofShares/FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
FOREIGN EQUITIES (cont’d)United Kingdom – 0.6%
23,287 Barclays PLC 93,546 101,59614,946 DS Smith PLC 78,818 86,4361,645 Weir Group PLC, The 51,078 54,639
223,442 242,671
TOTAL FOREIGN EQUITIES 5,224,198 6,954,826
TOTAL EQUITIES 19,000,638 24,389,165
BOND AND DEBENTURE INSTRUMENTS – 31.6%Federal Bonds – 31.0%
Government of Canada1,475,000 1.50% due Mar. 1, 2017 1,490,635 1,491,0532,125,000 1.25% due Mar. 1, 2018 2,131,333 2,132,6372,425,000 4.25% due Jun. 1, 2018 2,607,190 2,676,721
800,000 1.75% due Mar. 1, 2019 806,400 816,4502,250,000 2.75% due Jun. 1, 2022 2,378,580 2,429,7442,050,000 5.75% due Jun. 1, 2029 2,679,350 2,980,289
12,093,488 12,526,894
Corporate Bonds – 0.6%Brilliant Power Funding Corporation
54,723 5.67% due May 31, 2026 58,365 64,360Pearson International Fuel Facilities Corporation
66,244 5.09% due Mar. 9, 2032 66,135 70,917Royal Bank Scotland
86,000 6.67% due Oct. 5, 2017 82,963 95,030
207,463 230,307
TOTAL BOND AND DEBENTURE INSTRUMENTS 12,300,951 12,757,201
MONEY MARKET INSTRUMENTS – 12.5%5,050,000 Government of Canada
0.88% to 0.96% due fromJan. 5, 2015 to Apr. 23, 2015 5,040,961 5,044,323
TOTAL INVESTMENT PORTFOLIO 36,342,550 42,190,689
Currency Spot Contracts – 0.0% 1OTHER ASSETS, LESS LIABILITIES – (4.2)% (1,734,797)
NET ASSETS – 100.0% 40,455,893
CURRENCY SPOT CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation/
(Depreciation)
Jan. 2, 2015 Canadian Dollar 4,276 Hong Kong Dollar 28,565 4,275 1
The currency spot contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.
Portfolio Advisor: Gryphon Investment Counsel Inc.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Strategic Balanced Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $33,627,978 $33,017,485
Revaluation of Investments at FVTPL 18,985 26,232
Net assets attributable to holders of redeemable units $33,646,963 $33,043,717
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $4,102,205
Revaluation of Investments at FVTPL (7,247)
Increase (decrease) in net assets attributable to holders of redeemable units $4,094,958
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
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 fixed incomeinstruments.
Interest Rate Exposure* December 31, 2014 December 31, 2013 January 1, 2013
Less than 1 year $ – $ – $ –
1-3 years 1,586,083 5,899,962 6,225,453
3-5 years 5,625,809 2,759,424 76,262
5-10 years 2,429,744 805,659 3,817,068
> 10 years 3,115,565 2,859,529 3,343,877
Total $12,757,201 $12,324,574 $13,462,660
* Earlier of maturity or interest reset date. Excludes cash, money market instruments, underlying Funds, and preferred shares where applicable.
As at December 31, 2014, had the prevailing interest rates increased or decreased by 0.25%, assuming a parallel shift in the yieldcurve and all other variables held constant, net assets attributable to holders of redeemable units would have decreased orincreased, respectively, by $252,768 or approximately 0.6% (December 31, 2013 – $161,279 or approximately 0.5%, January 1, 2013 –$196,266 or approximately 0.6%). In practice, actual results may differ from this sensitivity analysis and the difference could bematerial.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables also
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Scotia Private Strategic Balanced Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
illustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 3,634,996 9.0 363,500 0.9
European Euro 1,546,011 3.8 154,601 0.4
Japanese Yen 1,068,704 2.6 106,870 0.3
Swiss Franc 359,775 0.9 35,978 0.1
British Pound 242,671 0.6 24,267 0.1
Swedish Krona 170,716 0.4 17,072 0.0
Hong Kong Dollar 139,513 0.3 13,951 0.0
Danish Krone 54,693 0.1 5,469 0.0
Total 7,217,079 17.7 721,708 1.8
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 2,395,164 7.1 239,516 0.7
European Euro 1,600,348 4.8 160,035 0.5
Japanese Yen 791,533 2.4 79,153 0.2
Swiss Franc 248,399 0.7 24,840 0.1
Hong Kong Dollar 167,094 0.5 16,709 0.0
Swedish Krona 101,004 0.3 10,100 0.0
British Pound 99,022 0.3 9,902 0.0
Australian Dollar 17,842 0.1 1,784 0.0
Total 5,420,405 16.2 542,039 1.5
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 1,761,949 5.3 176,195 0.5
European Euro 1,294,458 3.9 129,446 0.4
Japanese Yen 552,225 1.7 55,222 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
Australian Dollar 17,465 0.1 1,747 0.0
Total 4,243,733 12.9 424,374 1.3
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 December 31,2014, approximately 60.1% (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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The accompanying notes are an integral part of these financial statements.
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Scotia Private Strategic Balanced Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
respectively, by approximately $2,438,917 (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.
iv) Credit risk
The table below summarizes the credit ratings of any fixed income securities and preferred securities, excluding cash and moneymarket instruments, held by the Fund.
December 31, 2014 December 31, 2013 December 31, 2012
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Percentage ofTotal Bond and
DebentureInstruments (%)
Percentage ofNet assets
attributable toholders of
redeemableunits (%)
Bond Rating
A- to AAA+ 99.3 31.4 99.3 36.4 99.4 40.6
B- to BBB+ 0.7 0.2 0.7 0.3 0.6 0.2
Total 100.0 31.6 100.0 36.7 100.0 40.8
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $2,140,403 $ – $674 $ – $9,398
Unrealized loss on currency spot contracts – – – – – 4
Redeemable units 40,455,893 – 33,646,963 – 33,043,717 –
$40,455,893 $2,140,403 $33,646,963 $674 $33,043,717 $9,402
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.
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Scotia Private Strategic Balanced Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Canadian Equities
Energy 6.5 9.3 9.7
Materials 4.8 5.6 6.5
Industrials 4.8 3.6 3.4
Consumer Discretionary 4.5 3.8 3.3
Consumer Staples 3.4 2.0 1.5
Financials 15.1 15.2 13.5
Information Technology 3.9 3.9 2.6
Telecommunication Services – 0.5 1.6
United States Equities 8.4 7.0 5.2
Australia Equities – 0.1 0.1
Belgium Equities 0.1 0.1 –
Denmark Equities 0.1 – –
France Equities 1.5 1.3 1.3
Germany Equities 1.0 1.3 1.0
Hong Kong Equities 0.4 0.5 0.5
Italy Equities – 0.1 0.1
Japan Equities 2.6 2.4 1.7
Netherlands Equities 0.8 1.6 1.3
Spain Equities 0.3 0.3 0.3
Sweden Equities 0.4 0.3 0.4
Switzerland Equities 0.9 0.7 0.6
United Kingdom Equities 0.6 0.3 0.4
Bond and Debenture Instruments 31.6 36.7 40.8
Money Market Instruments 12.5 1.3 2.4
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $20,804,148 $ 3,585,017 $ – $24,389,165
Money Market Instruments – 5,044,323 – 5,044,323
Bond and Debenture Instruments – 12,757,201 – 12,757,201
Currency Spot Contracts – Assets 1 – – 1
$20,804,149 $21,386,541 $ – $42,190,690
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $17,135,716 $ 3,022,477 $ – $20,158,193
Bond and Debenture Instruments – 12,324,574 – 12,324,574
Money Market Instruments – 449,182 – 449,182
$17,135,716 $15,796,233 $ – $32,931,949
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The accompanying notes are an integral part of these financial statements.
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Scotia Private Strategic Balanced Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $15,625,935 $ 2,481,782 $ – $18,107,717
Bond and Debenture Instruments – 13,462,660 – 13,462,660
Money Market Instruments – 798,680 – 798,680
15,625,935 16,743,122 – 32,369,057
Currency Spot Contracts – Liabilities (4) – – (4)
$15,625,931 $16,743,122 $ – $32,369,053
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 17.31 17.31 16.35 16.35
Series F 17.53 17.53 16.53 16.53
BA
LAN
CE
DFU
ND
The accompanying notes are an integral part of these financial statements.
48
Scotia Private Canadian Value Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $129,127,626 $113,949,384 $95,278,305Cash 10,391 22,893 97,377Accrued investment income 386,618 343,081 358,751Subscriptions receivable 142,293 72,091 25,456
129,666,928 114,387,449 95,759,889
LIABILITIESCurrent liabilitiesRedemptions payable 26,560 119,519 21,638
Net Assets attributable to holders ofredeemable units $129,640,368 $114,267,930 $95,738,251
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $118,037,195 $102,750,821 $85,710,109Series F Units $ 571,764 $ 647,289 $ 486,971Series I Units $ 11,031,409 $ 10,869,820 $ 9,541,171
UNITS OUTSTANDINGPinnacle Series Units 5,666,390 5,009,436 4,641,593Series F Units 27,547 31,767 26,528Series I Units 517,950 518,352 505,435
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 20.83 $ 20.51 $ 18.46Series F Units $ 20.76 $ 20.38 $ 18.35Series I Units $ 21.30 $ 20.97 $ 18.88
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 3,566,459 $ 2,987,015Interest for distribution purposes 24,183 19,494Net realized gain (loss) on non-derivative financial assets 3,940,829 2,192,971Net gain (loss) foreign exchange – (224)Change in unrealized appreciation (depreciation) of non-
derivative financial assets (2,184,314) 9,058,045
Net gain (loss) on investments 5,347,157 14,257,301Securities lending 4,489 12,698Other income 209 1,301
Total income (loss) 5,351,855 14,271,300
EXPENSESManagement fees (note 5) 6,904 5,719Administration fees (note 6) 65,787 –Harmonized Sales Tax/Goods and Services Tax 17,380 13,468Audit fees 3,004 2,559Independent Review Committee fees 331 1,068Custodian fees 2,670 3,118Filing fees 11,092 16,778Legal fees 1,531 13Unitholder reporting costs 11,134 6,320Unitholder administration and service fees 84,203 116,809Overdraft charges 142 96Foreign withholding taxes/tax reclaims 1,109 3,528Transaction costs 54,557 58,605
Total expenses 259,844 228,081Absorbed expenses (1,888) (1,860)
Net expenses 257,956 226,221
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 5,093,899 $14,045,079
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 4,526,429 $12,609,037Series F Units $ 19,791 $ 68,745Series I Units $ 547,679 $ 1,367,297
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 0.88 $ 2.64Series F Units $ 0.62 $ 2.28Series I Units $ 1.09 $ 2.69
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 5,152,544 4,771,018Series F Units 31,858 30,191Series I Units 502,882 508,544
* 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: Scheer, Rowlett & Associates Investment Management Ltd.
The accompanying notes are an integral part of these financial statements.
CA
NA
DIA
NE
QU
ITY
FUN
DS
49
Scotia Private Canadian Value Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 4,526,429 12,609,037Series F Units 19,791 68,745Series I Units 547,679 1,367,297
5,093,899 14,045,079
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (2,944,788) (2,515,766)Series F Units (6,743) (9,921)Series I Units (287,669) (278,325)
(3,239,200) (2,804,012)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 28,896,256 21,521,640Series F Units 66,479 189,257Series I Units 917,900 590,609
Reinvested distributionsPinnacle Series Units 2,935,750 2,511,322Series F Units 5,777 9,322Series I Units 287,669 278,325
Payments on redemptionPinnacle Series Units (18,127,273) (17,085,521)Series F Units (160,829) (97,085)Series I Units (1,303,990) (629,257)
13,517,739 7,288,612
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 15,286,374 17,040,712Series F Units (75,525) 160,318Series I Units 161,589 1,328,649
15,372,438 18,529,679
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 118,037,195 102,750,821Series F Units 571,764 647,289Series I Units 11,031,409 10,869,820
$129,640,368 $114,267,930
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 5,093,899 $ 14,045,079Adjustments For:
Net realized (gain) loss on sale of non-derivative financialassets (3,940,829) (2,192,971)
Net realized (gain) loss foreign exchange on cash – 224Change in unrealized (appreciation) depreciation on sale
of non-derivative financial assets 2,184,314 (9,058,045)Purchases of non-derivative financial assets (71,410,043) (55,308,695)Proceeds from sale of non-derivative financial assets 57,933,759 47,830,026Transaction costs 54,557 58,605Accrued investment income (43,537) 15,670
Net cash provided by (used in) operating activities (10,127,880) (4,610,107)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 29,810,433 22,254,871Amounts paid on redemption of redeemable units (19,685,051) (17,713,982)Distributions to unitholders of redeemable units (10,004) (5,042)
Net cash provided by (used in) financing activities 10,115,378 4,535,847Net realized (gain) loss foreign exchange on cash – (224)Net increase (decrease) in cash (12,502) (74,260)Cash (Bank Indebtedness) at beginning of period 22,893 97,377
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 10,391 $ 22,893
Interest received(1) 24,184 19,504Dividends received, net of withholding taxes(1) 3,521,813 2,999,147
(1) Classified as operating items.
Portfolio Advisor: Scheer, Rowlett & Associates Investment Management Ltd.
The accompanying notes are an integral part of these financial statements.
CA
NA
DIA
NE
QU
ITY
FUN
DS
50
Scotia Private Canadian Value Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 95.6%Energy – 18.6%
30,600 Cameco Corporation 585,557 582,930188,700 Canadian Natural Resources Ltd. 5,085,263 6,778,10436,100 Canyon Services Group Inc 539,532 324,539
179,900 Cenovus Energy Inc. 5,022,335 4,312,20362,200 MEG Engery Corporation 2,087,068 1,216,010
182,200 Precision Drilling Corporation 1,733,069 1,286,332247,464 Suncor Energy, Inc. 6,690,951 9,131,42236,770 Trican Well Service Ltd. 489,940 204,80946,800 Trinidad Drilling Ltd. 330,472 243,360
22,564,187 24,079,709
Materials – 12.6%40,200 Agrium Inc. 3,186,617 4,422,000
194,800 Barrick Gold Corporation 7,176,986 2,438,896500,600 Capstone Mining Corp. 1,237,438 1,016,218
9,000 Domtar Corporation 356,909 420,120195,500 Lundin Mining Corporation 971,668 1,118,26086,300 Major Drilling Group International Inc. 691,629 492,77357,300 Potash Corporation of Saskatchewan Inc. 2,222,105 2,353,311
577,400 Sherritt International Corporation 2,066,129 1,732,200148,800 Teck Resources Ltd., Class B 4,958,201 2,362,944
22,867,682 16,356,722
Industrials – 5.9%95,200 Canadian National Railway Company 3,203,320 7,617,904
Consumer Discretionary – 6.6%1,500 Canadian Tire Corporation, Limited, Class A 85,708 184,110
35,600 Gildan Activewear Inc. 1,154,871 2,338,92036,200 Magna International Inc. 2,226,048 4,557,21850,600 RONA inc. 616,499 700,81015,700 Thomson Reuters Corporation 558,255 735,859
4,641,381 8,516,917
Consumer Staples – 1.7%111,500 Maple Leaf Foods Inc. 1,337,018 2,170,905
Financials – 42.8%183,500 Bank of Nova Scotia, The 8,002,045 12,167,88494,400 Canadian Imperial Bank of Commerce 6,345,177 9,424,89638,400 Element Financial Corp. 513,774 542,976
196,980 Manulife Financial Corporation 4,060,912 4,369,01655,000 National Bank of Canada 2,165,611 2,719,200
151,600 Royal Bank of Canada 7,541,977 12,164,38483,400 Sun Life Financial Inc. 2,944,880 3,496,128
191,900 Toronto-Dominion Bank, The 5,833,347 10,652,369
37,407,723 55,536,853
Information Technology – 0.3%24,700 Celestica Inc. 215,066 337,155
Telecommunication Services – 5.5%13,300 BCE Inc. 464,336 708,62470,800 Rogers Communications, Inc., Class B 2,500,917 3,198,03677,200 TELUS Corporation 1,770,369 3,233,908
4,735,622 7,140,568
Utilities – 0.6%31,400 Capital Power Corporation 709,161 816,400
Exchange-traded Funds – 1.0%60,900 iShares S&P/TSX 60 Index Fund 1,318,510 1,307,523
TOTAL EQUITIES 98,999,670 123,880,656
FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
MONEY MARKET INSTRUMENTS – 4.0%5,250,000 Government of Canada Treasury Bills
0.00% to 0.93% due from Jan. 5, 2015 toMar. 26, 2015 5,245,571 5,246,970
TOTAL INVESTMENT PORTFOLIO 104,245,241 129,127,626
OTHER ASSETS, LESS LIABILITIES – 0.4% 512,742
NET ASSETS – 100.0% 129,640,368
Portfolio Advisor: Scheer, Rowlett & Associates Investment Management Ltd.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
CA
NA
DIA
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QU
ITY
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DS
51
Scotia Private Canadian Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $114,197,160 $95,559,780
Revaluation of Investments at FVTPL 70,770 178,471
Net assets attributable to holders of redeemable units $114,267,930 $95,738,251
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $14,152,780
Revaluation of Investments at FVTPL (107,701)
Increase (decrease) in net assets attributable to holders of redeemable units $14,045,079
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest Rate Risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency Risk
The Fund did not have significant currency risk exposure as at December 31, 2014, December 31, 2013 and January 1, 2013.
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 December 31,2014, approximately 95.6% (December 31, 2013 – 98.1%, 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 $12,388,066 (December 31, 2013 – $11,203,062, January 1, 2013 – $9,479,994). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit Rate Risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
52
Scotia Private Canadian Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months
Ondemand
Less than3 months
Accounts payable and accrued liabilities $ – $26,560 $ – $119,519 $ – $21,638
Redeemable units 129,640,368 – 114,267,930 – 95,738,251 –
$129,640,368 $26,560 $114,267,930 $119,519 $95,738,251 $21,638
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Energy 18.6 22.7 21.6
Materials 12.6 14.9 21.3
Industrials 5.9 4.3 3.8
Consumer Discretionary 6.6 5.8 8.2
Consumer Staples 1.7 1.5 1.4
Financials 42.8 41.9 34.5
Information Technology 0.3 0.2 0.9
Telecommunication Services 5.5 6.3 7.5
Utilities 0.6 0.5 –
Exchange-traded Funds 1.0 – –
Money Market Instruments 4.0 1.6 0.3
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $123,880,656 $ – $ – $123,880,656
Money Market Instruments – 5,246,970 – 5,246,970
$123,880,656 $5,246,970 $ – $129,127,626
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $112,101,389 $ – $ – $112,101,389
Money Market Instruments – 1,847,995 – 1,847,995
$112,101,389 $1,847,995 $ – $113,949,384
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $ 94,978,406 $ – $ – $ 94,978,406
Money Market Instruments – 299,899 – 299,899
$ 94,978,406 $ 299,899 $ – $ 95,278,305
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
53
Scotia Private Canadian Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
Transfer Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 20.83 20.83 20.51 20.51
Series F 20.76 20.76 20.38 20.38
Series I 21.30 21.30 20.97 20.97
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
54
Scotia Private Canadian Mid Cap Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $56,919,676 $52,918,495 $40,646,248Cash 88,034 62,765 42,419Accrued investment income 115,912 78,439 62,799Receivable for securities sold 62,355 – –Subscriptions receivable 100,263 37,567 13,190
57,286,240 53,097,266 40,764,656
LIABILITIESCurrent liabilitiesPayable for securities purchased 145,497 292,945 –Redemptions payable 10,847 67,820 4,897
156,344 360,765 4,897
Net Assets attributable to holders ofredeemable units $57,129,896 $52,736,501 $40,759,759
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $50,729,497 $46,937,672 $36,120,917Series F Units $ 184,132 $ 178,925 $ 67,818Series I Units $ 6,216,267 $ 5,619,904 $ 4,571,024
UNITS OUTSTANDINGPinnacle Series Units 2,561,565 2,242,982 2,357,831Series F Units 9,364 8,643 4,459Series I Units 308,097 264,099 293,473
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 19.80 $ 20.92 $ 15.32Series F Units $ 19.66 $ 20.70 $ 15.21Series I Units $ 20.18 $ 21.27 $ 15.58
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 990,767 $ 868,740Interest for distribution purposes 33,959 16,219Capital gains distributions received (3,902) 9,194Net realized gain (loss) on non-derivative financial assets 9,548,544 5,784,080Net gain (loss) foreign exchange (6) –Change in unrealized appreciation (depreciation) of non-
derivative financial assets (4,637,487) 8,564,773
Net gain (loss) on investments 5,931,875 15,243,006Securities lending 12,290 11,841Other income 65 300
Total income (loss) 5,944,230 15,255,147
EXPENSESManagement fees (note 5) 2,206 1,198Administration fees (note 6) 45,175 –Harmonized Sales Tax/Goods and Services Tax 12,392 8,940Audit fees 1,346 895Independent Review Committee fees 147 934Custodian fees 5,516 5,265Filing fees 11,097 16,768Legal fees 689 1,230Unitholder reporting costs 9,664 5,907Unitholder administration and service fees 54,331 71,706Overdraft charges 301 902Foreign withholding taxes/tax reclaims 3,132 352Transaction costs 119,538 93,696
Total expenses 265,534 207,793Absorbed expenses (2,069) (2,189)
Net expenses 263,465 205,604
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 5,680,765 $15,049,543
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 5,026,318 $13,368,055Series F Units $ 16,779 $ 39,298Series I Units $ 637,668 $ 1,642,190
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 2.34 $ 5.87Series F Units $ 1.73 $ 5.81Series I Units $ 2.54 $ 5.98
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 2,147,891 2,278,728Series F Units 9,701 6,766Series I Units 250,586 274,585
* 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: Connor, Clark & Lunn Investment Management Ltd.
The accompanying notes are an integral part of these financial statements.
CA
NA
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ITY
FUN
DS
55
Scotia Private Canadian Mid Cap Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Pinnacle 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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 5,026,318 13,368,055Series F Units 16,779 39,298Series I Units 637,668 1,642,190
5,680,765 15,049,543
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (796,883) (619,015)Series F Units (864) (1,423)Series I Units (105,797) (83,342)
From realized gain – –Pinnacle Series Units (6,515,310) –Series F Units (24,700) –Series I Units (779,427) –
(8,222,981) (703,780)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 9,221,466 6,958,571Series F Units 49,425 92,604Series I Units 708,385 202,898
Reinvested distributionsPinnacle Series Units 7,279,491 617,660Series F Units 18,898 1,177Series I Units 885,224 83,342
Payments on redemptionPinnacle Series Units (10,423,257) (9,508,516)Series F Units (54,331) (20,549)Series I Units (749,690) (796,208)
6,935,611 (2,369,021)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 3,791,825 10,816,755Series F Units 5,207 111,107Series I Units 596,363 1,048,880
4,393,395 11,976,742
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 50,729,497 46,937,672Series F Units 184,132 178,925Series I Units 6,216,267 5,619,904
$ 57,129,896 $52,736,501
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 5,680,765 $ 15,049,543Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (9,548,544) (5,784,080)
Net realized (gain) loss foreign exchange on cash 6 –Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets 4,637,487 (8,564,773)Purchases of non-derivative financial assets (56,443,859) (43,757,623)Proceeds from sale of non-derivative financial assets 57,024,394 46,033,478Transaction costs 119,538 93,696Accrued investment income (37,473) (15,640)
Net cash provided by (used in) operating activities 1,432,314 3,054,601
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 9,916,580 7,229,696Amounts paid on redemption of redeemable units (11,284,251) (10,262,350)Distributions to unitholders of redeemable units (39,368) (1,601)
Net cash provided by (used in) financing activities (1,407,039) (3,034,255)Net realized (gain) loss foreign exchange on cash (6) –Net increase (decrease) in cash 25,275 20,346Cash (Bank Indebtedness) at beginning of period 62,765 42,419
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 88,034 $ 62,765
Interest received(1) 33,955 16,162Dividends received, net of withholding taxes(1) 950,166 852,805
(1) Classified as operating items.
Portfolio Advisor: Connor, Clark & Lunn Investment Management Ltd.
The accompanying notes are an integral part of these financial statements.
CA
NA
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ITY
FUN
DS
56
Scotia Private Canadian Mid Cap Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 96.4%Energy – 17.7%
42,841 Cardinal Energy Ltd. 611,768 578,78218,800 Crescent Point Energy Corp. 786,482 505,90832,400 Gibson Energy Inc. 845,095 880,95692,041 Kelt Exploration Ltd. 977,411 644,28710,400 Keyera Corp. 825,771 843,12856,800 Painted Pony Petroleum Ltd 634,760 525,40083,800 Parex Resources Inc. 892,936 635,2048,000 Peyto Exploration & Development Corporation 202,003 267,760
16,300 PrairieSky Royalty Ltd. 513,804 498,78077,700 Precision Drilling Corporation 712,656 548,562
139,060 Raging River Exploration Inc. 529,114 1,020,70089,400 RMP Energy Inc. 509,532 409,45261,100 Secure Energy Services Inc. 1,170,937 1,036,86720,300 ShawCor Ltd. 1,062,636 860,72036,400 TORC Oil & Gas Ltd. 404,196 280,280
100,400 Western Energy Services Corp. 917,852 603,404
11,596,953 10,140,190
Materials – 11.3%47,445 Alamos Gold Inc. 689,513 393,7943,700 CCL Industries Inc., Class B 150,999 465,719
69,100 Eldorado Gold Corporation 571,740 489,22822,400 Franco-Nevada Corporation 1,289,924 1,281,50430,600 HudBay Minerals, Inc. 346,294 309,67268,500 Interfor Corporation 861,354 1,503,57431,300 Intertape Polymer Group Inc. 404,467 582,493
109,718 Lundin Mining Corporation 537,613 627,5879,432 Methanex Corporation 596,763 503,386
60,200 Yamana Gold Inc. 295,559 282,338
5,744,226 6,439,295
Industrials – 9.0%63,400 ATS Automation Tooling Systems Inc. 568,787 982,70071,000 CAE, Inc. 979,043 1,070,68019,000 Lumenpulse Inc. 357,272 311,60026,300 Progressive Waste Solutions Ltd. 622,287 918,65914,104 Russel Metals Inc. 394,747 365,29417,400 WestJet Airlines Ltd. 534,115 580,46426,800 WSP Global Inc. 952,575 934,248
4,408,826 5,163,645
Consumer Discretionary – 12.6%8,600 Aimia Inc 123,959 125,6467,900 AutoCanada Inc. 267,825 351,550
13,875 BRP Inc. 390,677 335,9147,500 Cineplex, Inc. 308,406 336,225
10,600 Cogeco Cable Inc. 605,396 759,38430,500 Dollarama Inc. 1,062,705 1,811,6997,900 Gildan Activewear Inc. 237,742 519,030
31,400 Harwoods Distribution Inc. 240,699 361,72815,800 IMAX Corporation 360,609 566,58822,661 Linamar Corporation 560,991 1,607,79831,612 SunOpta Inc. 327,359 434,981
4,486,368 7,210,543
Consumer Staples – 9.6%72,418 Alimentation Couche-Tard Inc., Class B 1,301,547 3,526,03213,200 Empire Company Limited, Class A 1,044,418 1,156,58441,570 Maple Leaf Foods Inc. 799,564 809,368
3,145,529 5,491,984
Number ofShares/FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Health Care – 1.6%
10,400 Concordia Healthcare Corporation 455,901 486,2005,200 Endo International PLC 425,116 439,088
881,017 925,288
Financials – 23.4%9,400 Allied Properties Real Estate Investment Trust 352,624 351,936
22,100 Artis Real Estate Investment Trust 338,908 313,3787,600 Boardwalk Real Estate Investment Trust 446,100 467,704
33,917 Brookfield Property Partners LP 679,475 897,10526,300 Callidus Capital Corporation 563,710 460,25015,200 Calloway Real Estate Investment Trust 403,199 414,96020,800 CI Financial Corporation 691,092 671,63211,200 Davis + Henderson Income Corporation 248,146 410,70484,887 Element Financial Corp. 635,591 1,200,30218,900 FirstService Corporation 825,650 1,120,39220,700 Gluskin Sheff + Associates Inc. 365,526 573,18337,000 Great-West Lifeco Inc. 1,215,141 1,242,83016,700 IGM Financial, Inc. 779,413 773,37713,900 Industrial Alliance Insurance and Financial
Services Inc. 524,592 617,57717,400 Intact Financial Corporation 1,130,350 1,458,99023,640 Milestone Apartments Real Estate Investment
Trust 269,349 288,88134,600 Power Financial Corporation 1,059,980 1,251,82813,800 RioCan Real Estate Investment Trust 363,954 364,73453,700 Tricon Capital Group Inc 318,073 468,264
11,210,873 13,348,027
Information Technology – 8.1%11,900 CGI Group Inc., Class A 470,959 527,0513,100 Constellation Software Inc. 613,448 1,070,864
28,500 Descartes Systems Group Inc., The 415,789 491,6258,300 MacDonald, Dettwiler and Associates Ltd. 593,183 788,085
20,560 Open Text Corporation 734,588 1,390,06298,770 Sandvine Corporation 264,795 322,978
3,092,762 4,590,665
Utilities – 3.1%14,400 Brookfield Infrastructure Partners LP 380,566 700,56026,800 Capital Power Corporation 614,030 696,80013,064 Pattern Energy Group Inc. 381,219 366,315
1,375,815 1,763,675
TOTAL EQUITIES 45,942,369 55,073,312
MONEY MARKET INSTRUMENTS – 3.2%1,850,000 Government of Canada Treasury Bills
0.89% to 0.91% due fromFeb. 26, 2015 to Apr. 9, 2015 1,845,735 1,846,364
TOTAL INVESTMENT PORTFOLIO 47,788,104 56,919,676
OTHER ASSETS, LESS LIABILITIES – 0.4% 210,220
NET ASSETS – 100.0% 57,129,896
Portfolio Advisor: Connor, Clark & Lunn Investment Management Ltd.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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57
Scotia Private Canadian Mid Cap Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $52,508,794 $40,617,700
Revaluation of Investments at FVTPL 227,707 142,059
Net assets attributable to holders of redeemable units $52,736,501 $40,759,759
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $14,963,895
Revaluation of Investments at FVTPL 85,648
Increase (decrease) in net assets attributable to holders of redeemable units $15,049,543
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The Fund did not have significant currency risk exposure as at December 31, 2014, December 31, 2013 and January 1, 2013.
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 December 31,2014, approximately 96.4% (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 $5,507,331 (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.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
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The accompanying notes are an integral part of these financial statements.
58
Scotia Private Canadian Mid Cap Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $156,344 $ – $360,765 $ – $4,897
Redeemable units 57,129,896 – 52,736,501 – 40,759,759 –
$57,129,896 $156,344 $52,736,501 $360,765 $40,759,759 $4,897
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Canadian Equities
Energy 17.7 20.2 21.4
Materials 11.3 9.8 16.6
Industrials 9.0 11.9 9.9
Consumer Discretionary 12.6 15.6 11.9
Consumer Staples 9.6 4.4 3.5
Health Care 1.6 – –
Financials 23.4 25.0 23.8
Information Technology 8.1 10.0 5.2
Telecommunication Services – – 3.2
Utilities 3.1 2.0 3.7
Money Market Instruments 3.2 1.4 0.5
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $55,073,312 $ – $ – $55,073,312
Money Market Instruments – 1,846,364 – 1,846,364
$55,073,312 $1,846,364 $ – $56,919,676
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $51,877,142 $ – $ – $51,877,142
Warrants – 292,945 – 292,945
Money Market Instruments – 748,408 – 748,408
$51,877,142 $1,041,353 $ – $52,918,495
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $40,446,729 $ – $ – $40,446,729
Money Market Instruments – 199,519 – 199,519
$40,446,729 $ 199,519 $ – $40,646,248
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The accompanying notes are an integral part of these financial statements.
59
Scotia Private Canadian Mid Cap Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 19.80 19.80 20.92 20.92
Series F 19.66 19.66 20.70 20.70
Series I 20.18 20.18 21.27 21.27
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The accompanying notes are an integral part of these financial statements.
60
Scotia Private Canadian Growth Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $331,274,656 $258,408,870 $170,394,122Cash 70,558 121,379 76,114Accrued investment income 227,549 231,406 306,742Subscriptions receivable 134,991 80,352 43,434
331,707,754 258,842,007 170,820,412
LIABILITIESCurrent liabilitiesPayable for securities purchased 485,309 – –Redemptions payable 41,159 120,208 24,230
526,468 120,208 24,230
Net Assets attributable to holders ofredeemable units $331,181,286 $258,721,799 $170,796,182
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $122,999,468 $105,923,774 $ 89,119,816Series F Units $ 1,112,085 $ 1,065,853 $ 565,484Series I Units $207,069,733 $151,732,172 $ 81,110,882
UNITS OUTSTANDINGPinnacle Series Units 8,150,701 7,754,708 7,818,029Series F Units 73,051 77,444 49,041Series I Units 13,518,636 10,946,464 7,013,282
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 15.09 $ 13.66 $ 11.40Series F Units $ 15.22 $ 13.76 $ 11.53Series I Units $ 15.32 $ 13.86 $ 11.56
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 5,742,427 $ 4,812,541Interest for distribution purposes 77,196 57,268Net realized gain (loss) on non-derivative financial assets 12,262,841 (3,593,845)Net gain (loss) foreign exchange 3,838 2,159Change in unrealized appreciation (depreciation) of non-
derivative financial assets 14,959,215 42,707,738
Net gain (loss) on investments 33,045,517 43,985,861Securities lending 24,808 36,551
Other income 195 411
Total income (loss) 33,070,520 44,022,823
EXPENSESManagement fees (note 5) 11,901 6,955Administration fees (note 6) 94,144 –Harmonized Sales Tax/Goods and Services Tax 22,459 15,830
Audit fees 7,051 5,855Independent Review Committee fees 773 1,215Custodian fees 8,622 16,042Filing fees 11,084 16,764Legal fees 3,541 3,548Unitholder reporting costs 12,235 6,501Unitholder administration and service fees 93,366 133,234Overdraft charges – 21Transaction costs 183,837 123,021
Total expenses 449,013 328,986Absorbed expenses (1,694) (1,777)
Net expenses 447,319 327,209
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $32,623,201 $43,695,614
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $13,241,313 $19,509,424Series F Units $ 117,785 $ 137,556Series I Units $19,264,103 $24,048,634
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 1.70 $ 2.50Series F Units $ 1.48 $ 2.47Series I Units $ 1.63 $ 2.68
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 7,773,715 7,814,184Series F Units 79,828 55,757Series I Units 11,793,479 8,967,391
* 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: Manulife Asset Management
The accompanying notes are an integral part of these financial statements.
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61
Scotia Private Canadian Growth Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – BEGINNING OF PERIOD
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 UNITS FROMOPERATIONS
Pinnacle Series Units 13,241,313 19,509,424Series F Units 117,785 137,556Series I Units 19,264,103 24,048,634
32,623,201 43,695,614
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLEUNITS
From net investment incomePinnacle Series Units (1,947,409) (1,801,325)Series F Units (5,115) (11,395)Series I Units (3,505,501) (2,725,597)
(5,458,025) (4,538,317)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 22,709,050 15,969,149Series F Units 202,235 465,062Series I Units 58,110,980 48,987,161
Reinvested distributionsPinnacle Series Units 1,941,651 1,798,407Series F Units 4,562 10,229Series I Units 3,505,501 2,725,597
Payments on redemptionPinnacle Series Units (18,868,911) (18,671,697)Series F Units (273,235) (101,083)Series I Units (22,037,522) (2,414,505)
45,294,311 48,768,320
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 17,075,694 16,803,958Series F Units 46,232 500,369Series I Units 55,337,561 70,621,290
72,459,487 87,925,617
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – END OF PERIOD
Pinnacle Series Units 122,999,468 105,923,774Series F Units 1,112,085 1,065,853Series I Units 207,069,733 151,732,172
331,181,286 258,721,799
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 32,623,201 $ 43,695,614Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (12,262,841) 3,593,845
Net realized (gain) loss foreign exchange on cash (3,838) (2,159)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (14,959,215) (42,707,738)Purchases of non-derivative financial assets (699,366,015) (848,760,205)Proceeds from sale of non-derivative financial assets 654,023,758 799,736,330Transaction costs 183,837 123,021Accrued investment income 3,857 75,336
Net cash provided by (used in) operating activities (39,757,256) (44,245,956)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 80,967,626 65,384,454Amounts paid on redemption of redeemable units (41,258,718) (21,091,307)Distributions to unitholders of redeemable units (6,311) (4,084)
Net cash provided by (used in) financing activities 39,702,597 44,289,063Net realized (gain) loss foreign exchange on cash 3,838 2,159Net increase (decrease) in cash (54,659) 43,106Cash (Bank Indebtedness) at beginning of period 121,379 76,114
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 70,558 $ 121,379
Interest received(1) 77,421 56,959Dividends received, net of withholding taxes(1) 5,746,059 4,888,186
(1) Classified as operating items.
Portfolio Advisor: Manulife Asset Management
The accompanying notes are an integral part of these financial statements.
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62
Scotia Private Canadian Growth Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 97.5%Energy – 14.7%
311,310 Canadian Natural Resources Ltd. 12,405,711 11,182,255274,870 EnCana Corporation 6,754,388 4,444,64893,650 Imperial Oil Ltd. 4,306,631 4,687,183
131,810 Peyto Exploration & Development Corporation 4,501,337 4,411,681162,910 PrairieSky Royalty Ltd. 5,910,727 4,985,046130,400 Seven Generations Energy Ltd. 2,530,267 2,280,69644,300 ShawCor Ltd. 1,975,196 1,878,320
403,660 Suncor Energy, Inc. 15,107,878 14,895,054
53,492,135 48,764,883
Materials – 6.9%36,300 Agrium Inc. 3,443,041 3,993,000
364,440 First Quantum Minerals Ltd. 7,844,264 6,016,90482,490 Franco-Nevada Corporation 3,943,106 4,719,253
701,990 Lundin Mining Corporation 4,008,447 4,015,38374,910 Methanex Corporation 3,776,986 3,997,947
23,015,844 22,742,487
Industrials – 12.1%199,690 Canadian National Railway Company 8,509,846 15,979,19446,110 Canadian Pacific Railway Limited 9,095,880 10,317,113
133,020 SNC-Lavalin Group Inc. 6,145,562 5,894,116238,930 WestJet Airlines Ltd. 5,223,236 7,970,705
28,974,524 40,161,128
Consumer Discretionary – 13.6%269,080 Aimia Inc 4,409,240 3,931,25944,820 AutoCanada Inc. 3,134,895 1,994,490
101,200 BRP Inc. 2,806,145 2,450,052109,870 Dollarama Inc. 2,849,867 6,526,278148,590 Gildan Activewear Inc. 7,715,271 9,762,363108,310 IMAX Corporation 3,014,452 3,883,99792,920 Magna International Inc. 5,376,217 11,697,699
108,630 Restaurant Brands International Inc. 4,670,439 4,942,665
33,976,526 45,188,803
Consumer Staples – 7.3%234,000 Alimentation Couche-Tard Inc., Class B 3,710,399 11,393,460130,690 Loblaw Companies Limited 6,631,547 8,124,997129,640 Saputo Inc. 3,199,515 4,527,029
13,541,461 24,045,486
Health Care – 7.0%120,960 Catamaron Corporation 6,176,375 7,272,11596,320 Valeant Pharmaceuticals International, Inc. 7,081,869 16,020,906
13,258,244 23,293,021
Financials – 30.2%223,140 Bank of Nova Scotia, The 11,998,105 14,796,413156,180 Brookfield Asset Management Inc., Class A 5,820,722 9,092,800185,070 CI Financial Corporation 5,743,531 5,975,910436,030 Element Financial Corp. 5,458,998 6,165,464116,030 Home Capital Group Inc. 3,357,253 5,568,280112,390 Intact Financial Corporation 6,480,244 9,423,902184,470 Royal Bank of Canada 12,680,837 14,801,873224,130 Sun Life Financial Inc. 7,490,200 9,395,530444,660 Toronto-Dominion Bank, The 18,287,309 24,683,073
77,317,199 99,903,245
Number ofShares/FaceValue ($) Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Information Technology – 5.7%
190,380 CGI Group Inc., Class A 4,952,637 8,431,93021,890 Constellation Software Inc. 2,888,173 7,561,682
176,760 Descartes Systems Group Inc., The 2,660,716 3,049,110
10,501,526 19,042,722
TOTAL EQUITIES 254,077,459 323,141,775
MONEY MARKET INSTRUMENTS – 2.5%7,100,000 Government of Canada Treasury Bills
0.95% to 1.00% due fromJan. 8, 2015 to Jul. 30, 2015 7,070,949 7,082,911
1,050,000 Banner Trust Commercial Paper1.04% due Jan. 2, 2015 1,049,940 1,049,970
8,120,889 8,132,881
TOTAL INVESTMENT PORTFOLIO 262,198,348 331,274,656
OTHER ASSETS, LESS LIABILITIES – 0.0% (93,370)
NET ASSETS – 100.0% 331,181,286
Portfolio Advisor: Manulife Asset Management
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
CA
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63
Scotia Private Canadian Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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 12)
The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $258,368,472 $170,444,125
Revaluation of Investments at FVTPL 353,327 352,057
Net assets attributable to holders of redeemable units $258,721,799 $170,796,182
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $43,694,344
Revaluation of Investments at FVTPL 1,270
Increase (decrease) in net assets attributable to holders of redeemable units $43,695,614
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 48,575 0.0 4,858 0.0
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 44,468 0.0 4,447 0.0
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The accompanying notes are an integral part of these financial statements.
64
Scotia Private Canadian Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 41,589 0.0 4,159 0.0
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 December 31,2014, approximately 97.6% (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 $32,314,178 (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.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $526,468 $ – $120,208 $ – $24,230
Redeemable units 331,181,286 – 258,721,799 – 170,796,182 –
$331,181,286 $526,468 $258,721,799 $120,208 $170,796,182 $24,230
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)December 31, 2014 December 31, 2013 January 1, 2013
Energy 14.7 19.0 22.9
Materials 6.9 6.9 20.6
Industrials 12.1 9.7 9.4
Consumer Discretionary 13.6 11.6 5.8
Consumer Staples 7.3 7.1 5.5
Health Care 7.0 5.6 4.0
Financials 30.2 31.0 24.0
Information Technology 5.7 6.8 5.7
Money Market Instruments 2.5 2.2 1.9 CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
65
Scotia Private Canadian Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $323,141,775 $ – $ – $323,141,775
Money Market Instruments – 8,132,881 – 8,132,881
$323,141,775 $8,132,881 $ – $331,274,656
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $252,733,347 $ – $ – $252,733,347
Money Market Instruments – 5,675,523 – 5,675,523
$252,733,347 5,675,523 $ – $258,408,870
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $167,084,296 $ – $ – $167,084,296
Money Market Instruments – 3,309,826 – 3,309,826
$167,084,296 3,309,826 $ – $170,394,122
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 15.09 15.09 13.66 13.66
Series F 15.22 15.22 13.76 13.76
Series I 15.32 15.32 13.86 13.86
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
66
Scotia Private Canadian Small Cap Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $513,548,058 $383,326,330 $233,873,987Cash 23,877,360 11,183,951 112,956Accrued investment income 1,255,729 938,485 638,988Receivable for securities sold – 792,176 310,161Subscriptions receivable 123,282 66,808 34,170
538,804,429 396,307,750 234,970,262
LIABILITIESCurrent liabilitiesPayable for securities purchased 222,432 235,868 2,422,860Redemptions payable 16,117 48,125 9,755
238,549 283,993 2,432,615
Net Assets attributable to holdersof redeemable units $538,565,880 $396,023,757 $232,537,647
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLEUNITS PER SERIES
Pinnacle Series Units $ 66,574,081 $ 61,592,518 $ 46,711,853Series F Units $ 1,875,278 $ 879,131 $ 428,022Series I Units $470,116,521 $333,552,108 $185,397,772
UNITS OUTSTANDINGPinnacle Series Units 2,112,990 1,896,165 1,882,608Series F Units 58,109 26,365 16,758Series I Units 14,422,203 9,927,139 7,230,922
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLEUNITS PER UNIT
Pinnacle Series Units $ 31.51 $ 32.48 $ 24.81Series F Units $ 32.27 $ 33.34 $ 25.54Series I Units $ 32.60 $ 33.60 $ 25.64
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 10,530,056 $ 6,875,833Interest for distribution purposes 151,881 113,154Capital gains distributions received – 7,242Net realized gain (loss) on non-derivative financial assets 54,232,521 44,882,559Net gain (loss) foreign exchange – (4,322)Change in unrealized appreciation (depreciation) of non-
derivative financial assets (25,580,993) 66,788,511
Net gain (loss) on investments 39,333,465 118,662,977Securities lending 64,036 74,908
Total income (loss) 39,397,501 118,737,885
EXPENSESManagement fees (note 5) 14,142 5,635Administration fees (note 6) 100,404 –Harmonized Sales Tax/Goods and Services Tax 23,307 14,861Audit fees 11,224 8,871Independent Review Committee fees 1,224 1,117Custodian fees 9,554 12,675Filing fees 11,077 18,302Legal fees 5,605 4,414Unitholder reporting costs 12,872 6,616Unitholder administration and service fees 97,716 144,330Overdraft charges – 22Transaction costs 543,466 823,818
Total expenses 830,591 1,040,661Absorbed expenses (1,693) (2,494)
Net expenses 828,898 1,038,167
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 38,568,603 $117,699,718
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 5,828,278 $ 19,685,517Series F Units $ 44,544 $ 208,094Series I Units $ 32,695,781 $ 97,806,107
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 3.17 $ 10.97Series F Units $ 1.12 $ 11.17Series I Units $ 2.92 $ 11.69
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 1,838,234 1,794,193Series F Units 39,657 18,622Series I Units 11,186,003 8,367,888
* 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: Van Berkom and Associates Inc.
The accompanying notes are an integral part of these financial statements.
CA
NA
DIA
NE
QU
ITY
FUN
DS
67
Scotia Private Canadian Small Cap Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Pinnacle Series Units $ 61,592,518 $ 46,711,853Series F Units 879,131 428,022Series I Units 333,552,108 185,397,772
396,023,757 232,537,647
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 5,828,278 19,685,517Series F Units 44,544 208,094Series I Units 32,695,781 97,806,107
38,568,603 117,699,718
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (1,135,514) (928,913)Series F Units (19,835) (8,544)Series I Units (8,977,097) (5,584,826)
From realized gainPinnacle Series Units (6,364,867) (4,807,818)Series F Units (180,389) (68,565)Series I Units (45,061,434) (25,763,565)
(61,739,136) (37,162,231)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 10,764,075 9,463,877Series F Units 1,294,331 322,969Series I Units 135,264,384 69,426,783
Reinvested distributionsPinnacle Series Units 7,486,637 5,727,778Series F Units 188,911 73,659Series I Units 54,038,531 31,348,391
Payments on redemptionPinnacle Series Units (11,597,046) (14,259,776)Series F Units (331,415) (76,504)Series I Units (31,395,752) (19,078,554)
165,712,656 82,948,623
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 4,981,563 14,880,665Series F Units 996,147 451,109Series I Units 136,564,413 148,154,336
142,542,123 163,486,110
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 66,574,081 61,592,518Series F Units 1,875,278 879,131Series I Units 470,116,521 333,552,108
$538,565,880 $396,023,757
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 38,568,603 $ 117,699,718Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (54,232,521) (44,882,559)
Net realized (gain) loss foreign exchange on cash – 4,322Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets 25,580,993 (66,788,511)Purchases of non-derivative financial assets (210,630,646) (261,941,597)Proceeds from sale of non-derivative financial assets 109,295,720 220,667,499Transaction costs 543,466 823,818Accrued investment income (317,244) (299,497)
Net cash provided by (used in) operating activities (91,191,629) (34,716,807)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 147,266,316 79,180,991Amounts paid on redemption of redeemable units (43,356,221) (33,376,464)Distributions to unitholders of redeemable units (25,057) (12,403)
Net cash provided by (used in) financing activities 103,885,038 45,792,124Net realized (gain) loss foreign exchange on cash – (4,322)Net increase (decrease) in cash 12,693,409 11,075,317Cash (Bank Indebtedness) at beginning of period 11,183,951 112,956
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 23,877,360 $ 11,183,951
Interest received(1) 130,965 108,477Dividends received, net of withholding taxes(1) 10,233,728 6,581,013
(1) Classified as operating items.
Portfolio Advisor: Van Berkom and Associates Inc.
The accompanying notes are an integral part of these financial statements.
CA
NA
DIA
NE
QU
ITY
FUN
DS
68
Scotia Private Canadian Small Cap Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 95.4%Canadian Equities – 95.4%Energy – 13.4%
986,700 Calfrac Well Services Ltd. 16,264,737 9,876,867720,291 Canadian Energy Services & Technology
Corporation 1,799,373 4,573,848594,200 Canyon Services Group Inc 7,381,872 5,341,858468,900 Enerflex Ltd. 7,301,888 7,685,271895,750 Kelt Exploration Ltd. 7,897,962 6,270,250605,300 Mullen Group Limited 16,583,888 12,898,943
1,041,300 NuVista Energy Ltd. 8,249,955 7,716,033230,700 Peyto Exploration & Development Corporation 6,906,755 7,721,529
1,311,400 Savanna Energy Services Corp. 10,278,433 4,432,532920,648 ZCL Composites Inc. 5,492,292 5,579,127
88,157,155 72,096,258
Materials – 17.5%805,300 Canam Group Inc., Class A 8,766,838 9,124,049260,000 CCL Industries Inc., Class B 20,952,631 32,726,199301,900 Interfor Corporation 4,782,165 6,626,705
1,191,100 Major Drilling Group International Inc. 8,753,970 6,801,181603,632 Stella-Jones Inc. 8,497,789 19,762,912568,471 Winpak Ltd. 9,234,069 19,038,094
60,987,462 94,079,140
Industrials – 20.9%1,010,200 ATS Automation Tooling Systems Inc. 12,333,178 15,658,100
400,350 Cervus Equipment Corp. 8,717,832 8,243,207555,256 DirectCash Payments Inc. 10,145,249 10,799,729
1,128,400 Exco Technologies Ltd. 9,966,473 13,303,8362,535,010 Horizon North Logistics Inc. 16,133,566 6,692,426
259,284 Richelieu Hardware Ltd. 7,937,349 14,779,188476,416 Stantec Inc. 8,174,908 15,211,963492,500 Toromont Industries Ltd. 11,859,913 14,041,175390,500 WSP Global Inc. 11,181,351 13,612,830
96,449,819 112,342,454
Consumer Discretionary – 7.0%702,100 Bauer Performance Sports Ltd. 9,278,565 14,842,394500,390 Leon’s Furniture Ltd. 7,370,984 8,956,981831,600 Martinrea International Inc. 9,882,922 8,623,692157,640 MTY Food Group Inc. 2,667,197 5,314,044
29,199,668 37,737,111
Consumer Staples – 8.0%681,900 Alimentation Couche-Tard Inc., Class B 19,178,545 33,201,711439,022 High Liner Foods Inc. 7,238,488 9,948,239
26,417,033 43,149,950
Health Care – 1.1%532,000 Knight Therapeutics Inc. 2,839,787 3,681,44089,600 New Look Eyewear Inc. 1,735,956 2,063,936
4,575,743 5,745,376
Financials – 10.5%348,773 Canadian Western Bank 9,274,518 11,422,316214,914 Equitable Group Inc. 7,752,096 14,113,402329,004 Equity Financial Holdings, Inc. 3,330,810 3,405,191469,263 FirstService Corporation 16,422,572 27,817,910
36,779,996 56,758,819
Information Technology – 15.4%1,698,700 5N Plus Inc. 6,181,571 4,195,7891,266,200 Absolute Software Corporation 8,846,748 10,281,5442,748,887 COM DEV International Ltd. 10,778,585 10,968,059
655,491 Descartes Systems Group Inc., The 5,216,915 11,307,220613,117 Enghouse Systems Limited 17,157,971 25,438,224217,000 MacDonald, Dettwiler and Associates Ltd. 17,567,968 20,604,150
65,749,758 82,794,986
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Canadian Equities (cont’d)Telecommunication Services – 1.6%
1,459,400 Canadian Satellite Radio Holdings Inc. 10,907,444 8,843,964
TOTAL INVESTMENT PORTFOLIO 419,224,078 513,548,058
OTHER ASSETS, LESS LIABILITIES – 4.6% 25,017,822
NET ASSETS – 100.0% 538,565,880
Portfolio Advisor: Van Berkom and Associates Inc.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
CA
NA
DIA
NE
QU
ITY
FUN
DS
69
Scotia Private Canadian Small Cap Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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. The Fund’s investments may also include up to 15% cash and cashequivalents.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $394,611,741 $231,165,531
Revaluation of Investments at FVTPL 1,412,016 1,372,116
Net assets attributable to holders of redeemable units $396,023,757 $232,537,647
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $117,659,818
Revaluation of Investments at FVTPL 39,900
Increase (decrease) in net assets attributable to holders of redeemable units $117,699,718
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The Fund did not have significant currency risk exposure as at December 31, 2014, December 31, 2013 and January 1, 2013.
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 December 31,2014, approximately 95.4% (December 31, 2013 – 96.8%, January 1, 2013 – 97.5%) 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 $51,354,806 (December 31, 2013 – $38,191,431, January 1, 2013 – $22,524,320). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
70
Scotia Private Canadian Small Cap Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $238,549 $ – $283,993 $ – $2,432,615
Redeemable units 538,565,880 – 396,023,757 – 232,537,647 –
$538,565,880 $238,549 $396,023,757 $283,993 $232,537,647 $2,432,615
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Energy 13.4 16.1 17.0
Materials 17.5 13.6 9.3
Industrials 20.9 25.1 22.9
Consumer Discretionary 7.0 6.4 4.2
Consumer Staples 8.0 2.9 3.4
Health Care 1.1 – 5.3
Financials 10.5 13.6 25.1
Information Technology 15.4 16.3 10.3
Telecommunication Services 1.6 2.8 –
Money Market Instruments – – 3.1
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $513,548,058 $ – $ – $513,548,058
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $383,326,330 $ – $ – $383,326,330
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $226,294,285 $ – $ – $226,294,285
Warrants – 321,027 – 321,027
Money Market Instruments – 7,258,675 – 7,258,675
$226,294,285 $7,579,702 $ – $233,873,987
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
71
Scotia Private Canadian Small Cap Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 31.50 31.51 32.48 32.48
Series F 32.27 32.27 33.34 33.34
Series I 32.59 32.60 33.60 33.60
CA
NA
DIA
NE
QU
ITY
FUN
DS
The accompanying notes are an integral part of these financial statements.
72
Scotia Private U.S. Value Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $273,518,113 $421,169,644 $247,647,944Cash 13,453,411 16,534,636 11,842,076Accrued investment income 176,325 594,770 369,605Receivable for securities sold 2,021,035 – –Subscriptions receivable 167,302 92,053 299,527
289,336,186 438,391,103 260,159,152
LIABILITIESCurrent liabilitiesRedemptions payable 62,026 50,207 9,277Unrealized loss on currency spot
contracts – – 107
62,026 50,207 9,384
Net Assets attributable to holders ofredeemable units $289,274,160 $438,340,896 $260,149,768
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $ 77,202,015 $ 67,585,773 $ 45,946,389Series F Units $ 453,184 $ 624,065 $ 148,840Series I Units $211,618,961 $370,131,058 $214,054,539
UNITS OUTSTANDINGPinnacle Series Units 5,054,050 4,446,873 4,078,416Series F Units 29,449 41,087 13,167Series I Units 13,496,390 23,742,449 18,530,517
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 15.28 $ 15.20 $ 11.27Series F Units $ 15.39 $ 15.19 $ 11.30Series I Units $ 15.68 $ 15.59 $ 11.55
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 9,339,312 $ 8,068,923Interest for distribution purposes 2,789 1,674Net realized gain (loss) on non-derivative financial assets 59,330,495 21,657,740Net gain (loss) foreign exchange 413,894 205,045Change in unrealized appreciation (depreciation) of
non-derivative financial assets (42,827,548) 86,393,073Change in unrealized appreciation (depreciation) of
currency spots – 107
Net gain (loss) on investments 26,258,942 116,326,562Securities lending 65,629 67,989Net realized (gain) loss foreign exchange on cash 793,790 759,471
Total income (loss) 27,118,361 117,154,022
EXPENSESManagement fees (note 5) 7,061 3,042Administration fees (note 6) 78,373 –Harmonized Sales Tax/Goods and Services Tax 20,431 15,909Audit fees 6,863 10,106Independent Review Committee fees 779 1,125Custodian fees 5,477 7,019Filing fees 11,074 16,753Legal fees 3,666 4,652Unitholder reporting costs 12,220 6,740Unitholder administration and service fees 92,072 158,833Overdraft charges 172 –Foreign withholding taxes/tax reclaims 758,998 1,140,191Transaction costs 294,011 286,496
Total expenses 1,291,197 1,650,866Absorbed expenses (1,879) (2,017)
Net expenses 1,289,318 1,648,849
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 25,829,043 $115,505,173
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 7,196,327 $ 18,542,321Series F Units $ 63,987 $ 99,599Series I Units $ 18,568,729 $ 96,863,253
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 1.63 $ 4.37Series F Units $ 1.44 $ 4.41Series I Units $ 1.39 $ 4.54
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 4,417,025 4,240,085Series F Units 44,306 22,592Series I Units 13,357,909 21,315,916
* 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: Herndon Capital Management, LLC
The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Value Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – BEGINNING OF PERIOD
Pinnacle Series Units $ 67,585,773 $ 45,946,389Series F Units 624,065 148,840Series I Units 370,131,058 214,054,539
438,340,896 260,149,768
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS FROMOPERATIONS
Pinnacle Series Units 7,196,327 18,542,321Series F Units 63,987 99,599Series I Units 18,568,729 96,863,253
25,829,043 115,505,173
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLEUNITS
From net investment incomePinnacle Series Units (2,329,688) (956,350)Series F Units (6,476) (5,321)Series I Units (6,772,246) (5,887,744)
From realized gain – –Pinnacle Series Units (4,804,052) (881,769)Series F Units (28,654) (7,061)Series I Units (13,181,716) (4,818,273)
(27,122,832) (12,556,518)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 13,554,303 13,815,654Series F Units 174,316 392,934Series I Units 67,176,929 87,948,415
Reinvested distributionsPinnacle Series Units 7,114,408 1,836,409Series F Units 31,148 11,632Series I Units 19,953,962 10,706,017
Payments on redemptionPinnacle Series Units (11,115,056) (10,716,881)Series F Units (405,202) (16,558)Series I Units (244,257,755) (28,735,149)
(147,772,947) 75,242,473
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 9,616,242 21,639,384Series F Units (170,881) 475,225Series I Units (158,512,097) 156,076,519
(149,066,736) 178,191,128
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – END OF PERIOD
Pinnacle Series Units 77,202,015 67,585,773Series F Units 453,184 624,065Series I Units 211,618,961 370,131,058
$ 289,274,160 $438,340,896
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 25,829,043 $ 115,505,173Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (59,330,495) (21,657,740)
Net unrealized (gain) loss foreign exchange on cash (985,961) (773,219)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets 42,827,548 (86,393,073)Change in unrealized (appreciation) depreciation of
currency spot contracts — (107)Purchases of non-derivative financial assets (233,413,458) (306,044,799)Proceeds from sale of non-derivative financial assets 395,252,890 240,287,416Transaction costs 294,011 286,496Accrued investment income 418,445 (225,165)
Net cash provided by (used in) operating activities 170,892,023 (59,015,018)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 80,830,299 102,364,477Amounts paid on redemption of redeemable units (255,766,194) (39,427,658)Distributions to unitholders of redeemable units (23,314) (2,460)
Net cash provided by (used in) financing activities (174,959,209) 62,934,359Net unrealized (gain) loss foreign exchange on cash 985,961 773,219Net increase (decrease) in cash (4,067,186) 3,919,341Cash (Bank Indebtedness) at beginning of period 16,534,636 11,842,076
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 13,453,411 $ 16,534,636
Interest received(1) 2,834 1,632Dividends received, net of withholding taxes(1) 8,998,715 6,703,609
(1) Classified as operating items.
Portfolio Advisor: Herndon Capital Management, LLC
The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Value Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 94.6%Energy – 20.7%87,093 Apache Corporation 7,511,755 6,334,128
189,969 Atwood Oceanics, Inc. 8,582,586 6,254,405104,629 ConocoPhillips 8,101,236 8,385,377146,271 Continental Resource, Inc. 7,131,129 6,511,49552,022 Exxon Mobil Corporation 4,642,658 5,580,42778,910 Marathon Petroleum Corporation 4,935,516 8,263,70975,927 Oasis Petroleum Inc. 3,148,991 1,457,390
130,256 Oil States International, Inc. 8,152,837 7,395,58478,326 SM Energy Company 7,202,878 3,506,809
105,214 Valero Energy Corporation 5,639,458 6,043,975
65,049,044 59,733,299
Materials – 7.0%19,289 CF Industries Holdings, Inc. 3,514,723 6,100,75983,224 LyondellBasell Industries NV, Class A 6,995,395 7,667,58014,028 NewMarket Corporation 4,064,885 6,569,245
14,575,003 20,337,584
Industrials – 11.1%54,360 Caterpillar Inc. 6,049,052 5,772,24114,028 Copa Holdings SA, Class A 2,226,841 1,687,52843,839 Lockheed Martin Corporation 4,682,346 9,798,27359,036 Rockwell Collins, Inc. 4,777,607 5,787,81647,346 United Parcel Service, Inc., Class B 4,349,371 6,108,22240,916 Verisk Analytics, Inc. 2,711,832 3,041,279
24,797,049 32,195,359
Consumer Discretionary – 7.5%63,712 Ross Stores, Inc. 5,105,232 6,969,355
120,996 TJX Companies, Inc., The 4,861,760 9,629,69261,374 Yum! Brands, Inc. 4,141,163 5,188,692
14,108,155 21,787,739
Consumer Staples – 8.0%145,546 Altria Group, Inc. 4,699,431 8,321,98145,235 Campbell Soup Company 2,065,557 2,310,83391,770 Colgate-Palmolive Company 5,970,552 7,367,05353,191 Philip Morris International Inc. 4,163,548 5,027,744
16,899,088 23,027,611
Health Care – 4.7%48,321 Gilead Sciences, Inc. 4,599,954 5,285,758
127,425 Mylan Inc. 4,947,330 8,335,787
9,547,284 13,621,545
Financials – 21.6%107,552 Aflac, Inc. 5,749,785 7,624,871164,250 Apartment Investment & Management Company 4,825,460 7,081,220130,933 CBOE Holdings Inc. 4,939,222 9,636,499108,721 Discover Financial Services 4,652,019 8,262,897118,658 Eaton Vance Corp. 4,095,979 5,636,15265,466 McGraw-Hill Companies, Inc., The 3,852,899 6,757,80557,867 Moody’s Corporation 5,518,559 6,434,069
153,144 Nationstar Mortgage Holdings Inc. 5,552,433 5,010,014102,875 Waddell & Reed Financial, Inc. 4,774,183 5,947,815
43,960,539 62,391,342
Information Technology – 12.1%85,924 Apple Inc. 5,858,303 11,006,488
144,377 Microsoft Corporation 4,685,548 7,782,65275,403 Western Digital Corporation 4,090,276 9,686,796
313,888 Western Union Company 5,624,351 6,524,004
20,258,478 34,999,940
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Telecommunication Services – 1.0%
52,607 Verizon Communications Inc. 2,724,808 2,855,015
Utilities – 0.9%160,743 AES Corporation, The 2,521,241 2,568,679
TOTAL INVESTMENT PORTFOLIO 214,440,689 273,518,113
OTHER ASSETS, LESS LIABILITIES – 5.4% 15,756,047
NET ASSETS – 100.0% 289,274,160
Portfolio Advisor: Herndon Capital Management, LLC
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private U.S. Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $438,297,118 $260,106,686
Revaluation of Investments at FVTPL 43,778 43,082
Net assets attributable to holders of redeemable units $438,340,896 $260,149,768
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $115,504,477
Revaluation of Investments at FVTPL 696
Increase (decrease) in net assets attributable to holders of redeemable units $115,505,173
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 286,871,524 99.2 28,687,152 10.0
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 437,604,280 99.8 43,760,428 10.0
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 259,390,021 99.7 25,939,002 10.0
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 December 31,2014, approximately 94.6% (December 31, 2013 – 96.1%, January 1, 2013 – 95.2%) 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 $27,351,811 (December 31, 2013 – $42,112,587, January 1, 2013 – $24,760,486). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit Risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $62,026 $ – $50,207 $ – $9,277
Payable for currency forward contracts – – – – – 107
Redeemable units 289,274,160 – 438,340,896 – 260,149,768 –
$289,274,160 $62,026 $438,340,896 $50,207 $260,149,768 $9,384
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Energy 20.7 23.0 22.6
Materials 7.0 5.3 6.9
Industrials 11.1 10.1 10.2
Consumer Discretionary 7.5 9.8 10.6
Consumer Staples 8.0 10.1 7.9
Health Care 4.7 6.5 10.8
Financials 21.6 17.0 18.2
Information Technology 12.1 13.3 8.0
Utilities 0.9 1.0 –
Telecommunication Services 1.0 – –
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $273,518,113 $ – $ – $273,518,113
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $421,169,644 $ – $ – $421,169,644
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $247,647,944 $ – $ – $247,647,944
Currency Spot Contracts – Liabilities (107) – – (107)
$247,647,837 $ – $ – $247,647,837
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 15.28 15.28 15.20 15.20
Series F 15.39 15.39 15.19 15.19
Series I 15.68 15.68 15.59 15.59
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Value Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $28,213,299 $24,967,060 $17,812,375Cash 1,626,443 1,355,224 768,968Accrued investment income 33,309 15,144 10,904Subscriptions receivable 61,669 37,165 10,251
29,934,720 26,374,593 18,602,498
LIABILITIESCurrent liabilitiesPayable for securities purchased – 445,139 86,172Redemptions payable 32,303 11,379 18,095
32,303 456,518 104,267
Net Assets attributable to holders ofredeemable units $29,902,417 $25,918,075 $18,498,231
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $12,234,412 $10,556,154 $ 7,848,434Series F Units $ 216,440 $ 127,477 $ 59,053Series I Units $ 119,986 $ 137,659 $ 120,359Series M Units $17,331,579 $15,096,785 $10,470,385
UNITS OUTSTANDINGPinnacle Series Units 915,292 818,376 861,149Series F Units 16,309 9,964 6,515Series I Units 8,657 10,607 13,129Series M Units 1,300,385 1,175,086 1,152,768
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 13.37 $ 12.90 $ 9.11Series F Units $ 13.27 $ 12.79 $ 9.06Series I Units $ 13.86 $ 12.98 $ 9.17Series M Units $ 13.33 $ 12.85 $ 9.08
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 595,302 $ 318,744Interest for distribution purposes 1,242 1,539Net realized gain (loss) on non-derivative financial assets 5,929,994 3,428,546Net gain (loss) foreign exchange (6,882) (25,290)Change in unrealized appreciation (depreciation) of non-
derivative financial assets (2,691,898) 4,170,335
Net gain (loss) on investments 3,827,758 7,893,874Securities lending 260 82Net realized (gain) loss foreign exchange on cash 79,666 66,725
Total income (loss) 3,907,684 7,960,681
EXPENSESManagement fees (note 5) 88,083 69,676Administration fees (note 6) 24,992 –Harmonized Sales Tax/Goods and Services Tax 15,472 11,269Audit fees 636 152Independent Review Committee fees 69 842Custodian fees 6,828 4,807Filing fees 13,054 20,016Legal fees 325 590Unitholder reporting costs 5,568 3,216Unitholder administration and service fees 21,970 29,602Overdraft charges 1 –Foreign withholding taxes/tax reclaims 39,144 42,172Transaction costs 74,639 30,379
Total expenses 290,781 212,721Absorbed expenses (4,648) (3,864)
Net expenses 286,133 208,857
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 3,621,551 $7,751,824
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES
Pinnacle Series Units $ 1,466,822 $3,264,221Series F Units $ 26,867 $ 31,740Series I Units $ 6,359 $ 44,799Series M Units $ 2,121,503 $4,411,064
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*
Pinnacle Series Units $ 1.85 $ 3.88Series F Units $ 1.74 $ 3.76Series I Units $ 0.64 $ 3.94Series M Units $ 1.84 $ 3.86
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 792,550 841,074Series F Units 15,464 8,442Series I Units 9,862 11,364Series M Units 1,153,563 1,144,237
* 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: Hahn Capital Management, LLC
The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Value Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 1,466,822 3,264,221Series F Units 26,867 31,740Series I Units 6,359 44,799Series M Units 2,121,503 4,411,064
3,621,551 7,751,824
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (168,689) (71,857)Series F Units (1,690) (442)Series I Units (534) (980)Series M Units (208,413) (84,691)
From realized gainPinnacle Series Units (942,156) –Series F Units (16,811) –Series I Units (4,268) –Series M Units (1,333,974) –
(2,676,535) (157,970)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 2,127,438 2,553,504Series F Units 117,751 37,798Series I Units 118,169 1,504Series M Units 5,479,396 3,704,544
Reinvested distributionsPinnacle Series Units 1,108,356 71,662Series F Units 18,091 442Series I Units 4,802 980Series M Units 1,535,119 82,146
Payments on redemptionPinnacle Series Units (1,913,513) (3,109,810)Series F Units (55,245) (1,114)Series I Units (142,201) (29,003)Series M Units (5,358,837) (3,486,663)
3,039,326 (174,010)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 1,678,258 2,707,720Series F Units 88,963 68,424Series I Units (17,673) 17,300Series M Units 2,234,794 4,626,400
3,984,342 7,419,844
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 12,234,412 10,556,154Series F Units 216,440 127,477Series I Units 119,986 137,659Series M Units 17,331,579 15,096,785
$29,902,417 $25,918,075
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 3,621,551 $ 7,751,824Adjustments For:
Net realized (gain) loss on sale of non-derivative financialassets (5,929,994) (3,428,546)
Net unrealized (gain) loss foreign exchange on cash (77,312) (67,887)Change in unrealized (appreciation) depreciation on sale
of non-derivative financial assets 2,691,898 (4,170,335)Purchases of non-derivative financial assets (34,250,211) (17,723,908)Proceeds from sale of non-derivative financial assets 33,722,290 18,496,692Transaction costs 74,639 30,379Accrued investment income (18,165) (4,240)
Net cash provided by (used in) operating activities (165,304) 883,979
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 7,818,250 6,270,436Amounts paid on redemption of redeemable units (7,448,872) (6,633,306)Distributions to unitholders of redeemable units (10,167) (2,740)
Net cash provided by (used in) financing activities 359,211 (365,610)Net unrealized (gain) loss foreign exchange on cash 77,312 67,887Net increase (decrease) in cash 193,907 518,369Cash (Bank Indebtedness) at beginning of period 1,355,224 768,968
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 1,626,443 $ 1,355,224
Interest received(1) 1,397 1,351Dividends received, net of withholding taxes(1) 537,838 272,520
(1) Classified as operating items.
Portfolio Advisor: Hahn Capital Management, LLC
The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Value Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 94.4%United States – 94.4%Energy – 6.7%
15,663 Kinder Morgan Inc/Delaware 490,543 769,0634,291 Pioneer Natural Resources Company 912,402 741,227
36,357 Weatherford International Ltd. 799,584 483,100
2,202,529 1,993,390
Materials – 4.8%7,124 Albemarle Corporation 526,107 496,911
13,162 Reliance Steel & Aluminum Co. 1,025,461 935,866
1,551,568 1,432,777
Industrials – 22.9%4,843 Chart Industries, Inc. 373,501 192,298
41,440 Convanta Holding Corporation 881,104 1,058,48323,455 Hexcel Corporation 1,066,522 1,129,3358,789 IDEX Corporation 720,785 793,937
14,958 Jacobs Engineering Group, Inc. 941,575 775,32731,458 Quanta Services, Inc. 1,198,369 1,036,4313,616 Roper Industries, Inc. 550,755 655,974
12,082 Wabtec Corporation 995,772 1,218,295
6,728,383 6,860,080
Consumer Discretionary – 17.7%11,530 Carter’s Inc. 934,470 1,167,9866,879 Mohawk Industries, Inc. 1,029,247 1,239,9688,884 Nordstrom, Inc. 606,248 818,4994,871 PVH Corporation 606,963 724,517
12,282 Ross Stores, Inc. 928,597 1,343,509
4,105,525 5,294,479
Consumer Staples – 4.7%18,885 Kroger Co., The 986,828 1,407,225
Health Care – 4.4%19,226 CareFusion Corporation 691,360 1,323,977
Financials – 27.1%14,836 CB Richard Ellis Group, Inc. 472,651 589,68716,392 CIT Group, Inc. 783,601 909,57813,524 Euronet Worldwide, Inc. 694,426 861,63112,859 First Republic Bank 719,536 777,77817,391 HCC Insurance Holdings, Inc. 891,247 1,080,45446,410 Host Hotels & Resorts Inc. 1,091,802 1,281,0298,264 PartnerRe Ltd. 961,628 1,093,731
17,434 SEI Investments Company 638,475 810,09311,937 Waddell & Reed Financial, Inc. 858,380 690,149
7,111,746 8,094,130
Information Technology – 6.1%17,043 Agilent Technologies, Inc. 950,661 809,72525,427 Keysight Technologies Inc. 884,109 997,516
1,834,770 1,807,241
TOTAL INVESTMENT PORTFOLIO 25,212,709 28,213,299
OTHER ASSETS, LESS LIABILITIES – 5.6% 1,689,118
NET ASSETS – 100.0% 29,902,417
Portfolio Advisor: Hahn Capital Management, LLC
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private U.S. Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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 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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $25,914,864 $18,493,333
Revaluation of Investments at FVTPL 3,211 4,898
Net assets attributable to holders of redeemable units $25,918,075 $18,498,231
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $7,753,511
Revaluation of Investments at FVTPL (1,687)
Increase (decrease) in net assets attributable to holders of redeemable units $7,751,824
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicate the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrate the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 29,772,704 99.6 2,977,270 10.0
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 26,160,414 100.9 2,616,041 10.1
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 18,510,744 100.1 1,851,074 10.0
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 December 31,2014, approximately 94.4% (December 31, 2013 – 96.3%, January 1, 2013 – 96.3%) 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 $2,821,330 (December 31, 2013 – $2,496,385, January 1, 2013 – $1,780,748). In practice, actual resultswill differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $32,303 $ – $456,518 $ – $104,267
Redeemable units 29,902,417 – 25,918,075 – 18,498,231 –
$29,902,417 $32,303 $25,918,075 $456,518 $18,498,231 $104,267
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
United States Equities
Energy 6.7 8.3 7.4
Materials 4.8 9.4 5.4
Industrials 22.9 14.3 15.3
Consumer Discretionary 17.7 16.2 16.6
Consumer Staples 4.7 2.0 3.9
Health Care 4.4 10.4 8.1
Financials 27.1 14.9 18.9
Information Technology 6.1 13.3 11.8
Utilities – 7.5 8.9 FOR
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $28,213,299 $ – $ – $28,213,299
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $24,967,060 $ – $ – $24,967,060
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $17,812,375 $ – $ – $17,812,375
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 13.37 13.37 12.90 12.90
Series F 13.27 13.27 12.79 12.79
Series I 13.86 13.86 12.98 12.98
Series M 13.33 13.33 12.85 12.85
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Growth Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $167,760,628 $104,441,280 $58,447,621Cash 6,087,938 3,733,190 3,370,717Accrued investment income 23,976 19,011 3,200Receivable for securities sold 226,431 355,890 –Subscriptions receivable 85,326 69,747 29,658
174,184,299 108,619,118 61,851,196
LIABILITIESCurrent liabilitiesPayable for securities purchased 243,600 1,617,462 –Redemptions payable 19,217 16,060 24,162
262,817 1,633,522 24,162
Net Assets attributable to holders ofredeemable units $173,921,482 $106,985,596 $61,827,034
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $ 14,814,476 $ 10,720,021 $ 7,397,334Series F Units $ 142,998 $ 88,281 $ 45,216Series I Units $141,774,132 $ 82,428,637 $43,280,594Series M Units $ 17,189,876 $ 13,748,657 $11,103,890
UNITS OUTSTANDINGPinnacle Series Units 558,534 477,061 449,479Series F Units 5,594 4,056 2,825Series I Units 5,291,209 3,634,890 2,607,812Series M Units 650,459 613,846 677,042
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 26.52 $ 22.47 $ 16.46Series F Units $ 25.56 $ 21.77 $ 16.01Series I Units $ 26.79 $ 22.68 $ 16.60Series M Units $ 26.43 $ 22.40 $ 16.40
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 1,060,080 $ 600,550Interest for distribution purposes 1,670 2,820Net realized gain (loss) on non-derivative financial assets 14,858,462 14,889,912Net gain (loss) foreign exchange (83,344) 17,466Change in unrealized appreciation (depreciation) of non-
derivative financial assets 10,680,381 10,470,291
Net gain (loss) on investments 26,517,249 25,981,039Securities lending 10,799 16,617Net realized (gain) loss foreign exchange on cash 384,561 136,368Other income – 600
Total income (loss) 26,912,609 26,134,624
EXPENSESManagement fees (note 5) 82,423 69,239Administration fees (note 6) 45,890 –Harmonized Sales Tax/Goods and Services Tax 20,275 15,795Audit fees 3,301 2,012Independent Review Committee fees 361 940Custodian fees 11,681 7,635Filing fees 11,975 18,230Legal fees 1,628 1,719Unitholder reporting costs 7,098 3,447Unitholder administration and service fees 55,867 75,748Overdraft charges 21 –Foreign withholding taxes/tax reclaims 159,168 87,041Transaction costs 113,547 101,175
Total expenses 513,235 382,981Absorbed expenses (26,198) (36,780)
Net expenses 487,037 346,201
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $26,425,572 $25,788,423
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 2,131,703 $ 2,767,832Series F Units $ 21,300 $ 19,629Series I Units $21,678,322 $19,106,368Series M Units $ 2,594,247 $ 3,894,594
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 4.23 $ 6.11Series F Units $ 4.17 $ 5.64Series I Units $ 4.58 $ 6.22Series M Units $ 4.14 $ 6.07
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 503,583 453,113Series F Units 5,108 3,478Series I Units 4,736,001 3,069,713Series M Units 626,502 641,412
* 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: William Blair & Company L.L.C.
The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Growth Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 2,131,703 2,767,832Series F Units 21,300 19,629Series I Units 21,678,322 19,106,368Series M Units 2,594,247 3,894,594
26,425,572 25,788,423
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (12,238) (16,601)Series I Units (687,737) (467,688)Series M Units – (678)
(699,975) (484,967)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 4,221,275 2,519,750Series F Units 36,448 24,572Series I Units 44,796,197 21,499,427Series M Units 5,359,496 3,295,285
Reinvested distributionsPinnacle Series Units 12,237 16,601Series I Units 687,737 467,688Series M Units – 659
Payments on redemptionPinnacle Series Units (2,258,522) (1,964,895)Series F Units (3,031) (1,136)Series I Units (7,129,024) (1,457,752)Series M Units (4,512,524) (4,545,093)
41,210,289 19,855,106
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 4,094,455 3,322,687Series F Units 54,717 43,065Series I Units 59,345,495 39,148,043Series M Units 3,441,219 2,644,767
66,935,886 45,158,562
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 14,814,476 10,720,021Series F Units 142,998 88,281Series I Units 141,774,132 82,428,637Series M Units 17,189,876 13,748,657
$173,921,482 $106,985,596
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 26,425,572 $ 25,788,423Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (14,858,462) (14,889,912)
Net unrealized (gain) loss foreign exchange on cash (412,942) (144,657)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (10,680,381) (10,470,291)Purchases of non-derivative financial assets (153,983,009) (132,805,383)Proceeds from sale of non-derivative financial assets 114,844,554 113,332,324Transaction costs 113,547 101,175Accrued investment income (4,965) (15,811)
Net cash provided by (used in) operating activities (38,556,086) (19,104,132)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 54,397,837 27,298,945Amounts paid on redemption of redeemable units (13,899,944) (7,976,978)Distributions to unitholders of redeemable units (1) (19)
Net cash provided by (used in) financing activities 40,497,892 19,321,948Net unrealized (gain) loss foreign exchange on cash 412,942 144,657Net increase (decrease) in cash 1,941,806 217,816Cash (Bank Indebtedness) at beginning of period 3,733,190 3,370,717
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 6,087,938 $ 3,733,190
Interest received(1) 1,914 2,734Dividends received, net of withholding taxes(1) 895,703 497,784
(1) Classified as operating items.
Portfolio Advisor: William Blair & Company L.L.C.
The accompanying notes are an integral part of these financial statements.
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86
Scotia Private U.S. Mid Cap Growth Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 96.5%Energy – 3.7%
13,970 Concho Resources Inc. 2,018,979 1,617,16128,350 FMC Technologies, Inc. 1,665,035 1,541,0408,020 Pioneer Natural Resources Company 1,320,794 1,385,374
21,460 Range Resources Corporation 1,755,385 1,331,13314,800 Whiting Petroleum Corporation 955,639 566,787
7,715,832 6,441,495
Materials – 1.1%15,969 International Flavors & Fragrances Inc. 1,741,790 1,878,030
Industrials – 16.3%56,005 Ametek Inc. 2,689,051 3,420,61448,830 Equifax Inc. 3,413,596 4,583,51544,800 Old Dominion Freight Line Inc. 2,854,394 4,036,52317,500 Rockwell Collins, Inc. 1,709,796 1,715,67836,080 Stericycle, Inc. 4,314,928 5,488,41617,560 The Middleby Corporation 1,742,643 2,019,49215,070 Towers Watson & Company, Class A 1,755,406 1,979,1957,520 TransDigm Group Inc. 1,275,066 1,712,966
46,150 Verisk Analytics, Inc. 3,263,052 3,430,321
23,017,932 28,386,720
Consumer Discretionary – 24.1%55,111 BorgWarner, Inc. 3,663,504 3,513,11057,469 Dollar General Corp. 3,598,722 4,714,16554,200 Fortune Brands Home & Security Inc. 2,530,646 2,847,434
116,347 Genpact Limited 2,187,969 2,555,93421,990 Limited Brands, Inc. 1,777,141 2,207,80423,650 Manpower Inc. 2,055,769 1,870,97737,210 Marriott International Inc., Class A 2,672,801 3,369,49820,090 Michael Kors Holdings Limited 1,728,794 1,750,91023,240 O’Reilly Automotive, Inc. 3,057,874 5,194,95021,160 Polaris Industries Inc 3,498,766 3,713,86629,590 Ross Stores, Inc. 2,740,166 3,236,80345,090 Six Flags Entertainment Corporation 2,000,731 2,257,90152,267 Williams-Sonoma, Inc 3,607,957 4,590,422
35,120,840 41,823,774
Consumer Staples – 9.4%30,970 Church & Dwight Co., Inc. 2,244,456 2,832,47719,285 Green Mountain Coffee Roasters 1,960,205 2,963,02435,810 Mead Johnson Nutrition Company 3,154,820 4,177,55626,130 Monster Beverage Corporation 2,988,873 3,285,58178,884 Sprouts Farmers Market Inc. 2,626,155 3,110,686
12,974,509 16,369,324
Health Care – 14.8%34,980 Align Technology Inc. 2,028,155 2,269,62037,064 BioMarin Pharmaceutical Inc. 2,743,564 3,890,279
114,013 HMS Holdings Corporation 2,904,855 2,797,07013,002 Idexx Laboratories Inc. 1,465,706 2,237,21317,560 Mallinckrodt PLC 1,710,383 2,017,04617,640 Medivation Inc. 1,570,176 2,039,13242,860 MEDNAX, Inc. 2,772,501 3,289,23327,790 Sirona Dental Systems, Inc. 2,182,851 2,817,70016,242 Techne Corporation 1,617,565 1,741,62852,660 Zoetis Inc. 2,026,695 2,628,417
21,022,451 25,727,338
Financials – 8.1%23,260 Affiliated Managers Group, Inc. 4,691,842 5,726,46457,984 LPL Financial Holdings Inc. 2,654,350 2,997,78036,960 Portfolio Recovery Associates, Inc. 2,335,586 2,484,73119,537 Signature Bank 2,089,445 2,855,844
11,771,223 14,064,819
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Information Technology – 16.5%
47,625 Akamai Technologies, Inc. 2,459,409 3,479,71512,464 CoStar Group Inc. 1,930,010 2,656,10344,734 Gartner Inc., Class A 3,259,829 4,371,64954,470 Guidewire Software Inc. 2,492,064 3,200,43622,750 IPG Photonics Corporation 1,625,725 1,977,9855,140 Mettler-Toledo International Inc. 1,742,398 1,805,949
55,918 NeuStar Inc. 2,252,789 1,804,01674,190 Pandora Media Inc. 1,992,538 1,535,11436,920 Red Hat, Inc. 2,099,428 2,962,340
126,384 Vantiv, Inc. 4,288,929 4,974,986
24,143,119 28,768,293
Telecommunication Services – 2.5%33,460 SBA Communications Corp., Class A 3,417,551 4,300,835
TOTAL INVESTMENT PORTFOLIO 140,925,247 167,760,628
OTHER ASSETS, LESS LIABILITIES – 3.5% 6,160,854
NET ASSETS – 100.0% 173,921,482
Portfolio Advisor: William Blair & Company L.L.C.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private U.S. Mid Cap Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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 companies traded on U.S. stock exchanges. The Fund’s investments may also include up to 15% cashand cash equivalents.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $106,966,217 $61,802,973
Revaluation of Investments at FVTPL 19,379 24,061
Net assets attributable to holders of redeemable units $106,985,596 $61,827,034
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $25,793,105
Revaluation of Investments at FVTPL (4,682)
Increase (decrease) in net assets attributable to holders of redeemable units $25,788,423
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 173,782,664 99.9 17,378,266 10.0
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 108,053,851 101.0 10,805,385 10.1
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The accompanying notes are an integral part of these financial statements.
88
Scotia Private U.S. Mid Cap Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 61,548,163 99.5 6,154,816 10.0
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 December 31,2014, approximately 96.5% (December 31, 2013 – 97.6%, January 1, 2013 – 94.5%) 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 $16,776,063 (December 31, 2013 – $10,442,190, January 1, 2013 – $5,842,356). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months
Ondemand
Less than3 months
Accounts payable and accrued liabilities $ – $262,817 $ – $1,633,522 $ – $24,162
Redeemable units 173,921,482 – 106,985,596 – 61,827,034 –
$173,921,482 $262,817 $106,985,596 $1,633,522 $61,827,034 $24,162
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
United States
Energy 3.7 4.2 8.8
Materials 1.1 4.2 2.0
Industrials 16.3 15.8 17.3
Consumer Discretionary 24.1 23.9 15.4
Consumer Staples 9.4 6.3 8.5
Health Care 14.8 10.8 16.3
Financials 8.1 7.1 5.5
Information Technology 16.5 21.1 20.7
Telecommunication Services 2.5 4.2 – FOR
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The accompanying notes are an integral part of these financial statements.
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Scotia Private U.S. Mid Cap Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $167,760,628 $ – $ – $167,760,628
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $104,441,280 $ – $ – $104,441,280
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $ 58,447,621 $ – $ – $ 58,447,621
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 26.52 26.52 22.47 22.47
Series F 25.56 25.56 21.77 21.77
Series I 26.79 26.79 22.68 22.68
Series M 26.43 26.43 22.40 22.40
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The accompanying notes are an integral part of these financial statements.
90
Scotia Private U.S. Large Cap Growth Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $68,653,135 $53,219,185 $37,941,991Cash 1,592,787 1,059,255 392,017Accrued investment income 24,278 38,605 29,202Receivable for securities sold – – 11,768Subscriptions receivable 151,790 45,080 3,359
70,421,990 54,362,125 38,378,337
LIABILITIESCurrent liabilitiesPayable for securities purchased – – 228,418Redemptions payable 13,401 65,930 6,561
13,401 65,930 234,979
Net Assets attributable to holders ofredeemable units $70,408,589 $54,296,195 $38,143,358
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $64,914,322 $49,795,968 $34,681,655Series F Units $ 505,596 $ 314,499 $ 109,258Series I Units $ 4,988,671 $ 4,185,728 $ 3,352,445
UNITS OUTSTANDINGPinnacle Series Units 4,530,986 4,393,127 4,201,942Series F Units 35,558 27,924 13,263Series I Units 346,444 367,599 404,494
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 14.33 $ 11.33 $ 8.25Series F Units $ 14.22 $ 11.26 $ 8.24Series I Units $ 14.40 $ 11.39 $ 8.29
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 927,976 $ 702,025Interest for distribution purposes 1,507 727Net realized gain (loss) on non-derivative financial assets 12,610,621 5,711,248Net gain (loss) foreign exchange 40,196 (11,383)Change in unrealized appreciation (depreciation) of
non-derivative financial assets 1,595,896 8,839,884
Net gain (loss) on investments 15,176,196 15,242,501Securities lending 335 2,133Net realized (gain) loss foreign exchange on cash 198,312 68,237
Total income (loss) 15,374,843 15,312,871
EXPENSESManagement fees (note 5) 4,389 2,020Administration fees (note 6) 58,766 –Harmonized Sales Tax/Goods and Services Tax 15,389 10,708Audit fees 1,375 920Independent Review Committee fees 153 912Custodian fees 9,819 13,374Filing fees 11,231 16,983Legal fees 703 1,110Unitholder reporting costs 10,086 5,791Unitholder administration and service fees 61,254 80,381Overdraft charges – 339Foreign withholding taxes/tax reclaims 95,621 94,909Transaction costs 26,525 22,024
Total expenses 295,311 249,471Absorbed expenses (2,462) (2,296)
Net expenses 292,849 247,175
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $15,081,994 $15,065,696
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES
Pinnacle Series Units $13,804,503 $13,754,000Series F Units $ 112,134 $ 67,333Series I Units $ 1,165,357 $ 1,244,363
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*
Pinnacle Series Units $ 3.16 $ 3.20Series F Units $ 3.13 $ 3.28Series I Units $ 3.16 $ 3.22
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 4,372,868 4,294,122Series F Units 35,826 20,515Series I Units 368,360 386,189
* 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: Polen Capital Management, LLC
The accompanying notes are an integral part of these financial statements.
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91
Scotia Private U.S. Large Cap Growth Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Pinnacle Series Units $ 49,795,968 $34,681,655Series F Units 314,499 109,258Series I Units 4,185,728 3,352,445
54,296,195 38,143,358
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 13,804,503 13,754,000Series F Units 112,134 67,333Series I Units 1,165,357 1,244,363
15,081,994 15,065,696
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (647,567) (463,467)Series F Units (1,088) (1,710)Series I Units (59,706) (45,715)
(708,361) (510,892)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 11,659,739 9,347,301Series F Units 154,321 172,803Series I Units 576,723 206,814
Reinvested distributionsPinnacle Series Units 645,419 462,731Series F Units 991 1,485Series I Units 59,706 45,715
Payments on redemptionPinnacle Series Units (10,343,740) (7,986,252)Series F Units (75,261) (34,670)Series I Units (939,137) (617,894)
1,738,761 1,598,033
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 15,118,354 15,114,313Series F Units 191,097 205,241Series I Units 802,943 833,283
16,112,394 16,152,837
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 64,914,322 49,795,968Series F Units 505,596 314,499Series I Units 4,988,671 4,185,728
$ 70,408,589 $54,296,195
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 15,081,994 $ 15,065,696Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (12,610,621) (5,711,248)
Net unrealized (gain) loss foreign exchange on cash (202,648) (71,744)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (1,595,896) (8,839,884)Purchases of non-derivative financial assets (60,170,803) (40,214,382)Proceeds from sale of non-derivative financial assets 58,916,844 39,249,646Transaction costs 26,525 22,024Accrued investment income 14,327 (9,403)
Net cash provided by (used in) operating activities (540,278) (509,295)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 12,284,074 9,685,197Amounts paid on redemption of redeemable units (11,410,667) (8,579,447)Distributions to unitholders of redeemable units (2,245) (961)
Net cash provided by (used in) financing activities 871,162 1,104,789Net unrealized (gain) loss foreign exchange on cash 202,648 71,744Net increase (decrease) in cash 330,884 595,494Cash (Bank Indebtedness) at beginning of period 1,059,255 392,017
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 1,592,787 $ 1,059,255
Interest received(1) 1,441 705Dividends received, net of withholding taxes(1) 846,748 597,735
(1) Classified as operating items.
Portfolio Advisor: Polen Capital Management, LLC
The accompanying notes are an integral part of these financial statements.
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92
Scotia Private U.S. Large Cap Growth Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 97.5%United States – 93.9%Industrials – 5.6%33,620 Fastenal Company 1,685,374 1,855,5967,162 W.W. Grainger, Inc. 1,938,589 2,118,512
3,623,963 3,974,108
Consumer Discretionary – 25.2%39,826 NIKE, Inc., Class B 3,323,394 4,442,23810,498 O’Reilly Automotive, Inc. 1,726,434 2,346,6692,840 priceline.com Incorporated 3,749,210 3,759,399
36,464 Starbucks Corporation 2,813,205 3,472,05746,597 TJX Companies, Inc., The 3,113,325 3,708,509
14,725,568 17,728,872
Health Care – 19.3%82,628 Abbott Laboratories 3,380,777 4,316,94614,236 Allergan, Inc. 1,657,582 3,515,13720,259 Celgene Corporation 2,670,094 2,629,8856,542 Regeneron Pharmaceuticals, Inc. 2,287,637 3,114,605
9,996,090 13,576,573
Information Technology – 43.8%30,897 Accenture PLC, Class A 2,681,766 3,202,28724,263 Apple Inc. 1,196,449 3,107,98427,204 Automatic Data Processing, Inc. 2,322,887 2,632,00414,678 FactSet Research Systems Inc. 1,706,484 2,397,50325,608 Gartner Inc., Class A 1,910,639 2,502,5534,025 Google Inc. Class A 3,778,064 2,478,7125,975 Google Inc. Class C 1,275,344 3,650,041
14,057 MasterCard, Inc., Class A 744,832 1,405,94582,702 Oracle Corporation 3,131,381 4,316,01416,872 Visa Inc. 3,861,738 5,133,850
22,609,584 30,826,893
Foreign Equities – 3.6%Switzerland – 3.6%30,082 Nestle SA 2,572,793 2,546,689
TOTAL INVESTMENT PORTFOLIO 53,527,998 68,653,135
OTHER ASSETS, LESS LIABILITIES – 2.5% 1,755,454
NET ASSETS – 100.0% 70,408,589
Portfolio Advisor: Polen Capital Management, LLC
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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93
Scotia Private U.S. Large Cap Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $54,287,083 $38,135,606
Revaluation of Investments at FVTPL 9,112 7,752
Net assets attributable to holders of redeemable units $54,296,195 $38,143,358
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $15,064,336
Revaluation of Investments at FVTPL 1,360
Increase (decrease) in net assets attributable to holders of redeemable units $15,065,696
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 70,076,699 99.5 7,007,670 10.0
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 54,200,397 99.8 5,420,040 10.0
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The accompanying notes are an integral part of these financial statements.
94
Scotia Private U.S. Large Cap Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 38,244,527 100.3 3,824,453 10.0
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 December 31,2014, approximately 97.5% (December 31, 2013 – 98.0%, January 1, 2013 – 99.5%) 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 $6,865,314 (December 31, 2013 – $5,321,007, January 1, 2013 – $3,793,424). In practice, actual resultswill differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $13,401 $ – $65,930 $ – $234,979
Redeemable units 70,408,589 – 54,296,195 – 38,143,358 –
$70,408,589 $13,401 $54,296,195 $65,930 $38,143,358 $234,979
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.
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The accompanying notes are an integral part of these financial statements.
95
Scotia Private U.S. Large Cap Growth Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Canadian Equities – – 0.9
United States Equities
Energy – 5.2 4.6
Materials – 3.8 3.1
Industrials 5.6 14.0 11.4
Consumer Discretionary 25.2 19.0 14.9
Consumer Staples – 10.7 13.9
Health Care 19.3 12.6 12.0
Financials – 4.8 4.2
Information Technology 43.8 27.7 30.9
Telecommunication Services – – 3.3
Utilities – – 0.3
Index Unit – 0.2 0.6
Foreign Equities 3.6 – –
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $68,653,135 $ – $ – $68,653,135
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $53,219,185 $ – $ – $53,219,185
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $37,941,991 $ – $ – $37,941,991
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 14.33 14.33 11.34 11.33
Series F 14.22 14.22 11.26 11.26
Series I 14.40 14.40 11.39 11.39
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The accompanying notes are an integral part of these financial statements.
96
Scotia Private International Equity Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $573,875,204 $727,395,348 $423,756,341Unrealized gain on currency spot
contracts 5,173 – 242Cash 30,399,832 44,657,517 23,780,282Accrued investment income 244,513 230,717 297,943Receivable for securities sold 126,680 1,442,418 1,498,736Subscriptions receivable 212,664 143,590 304,614
604,864,066 773,869,590 449,638,158
LIABILITIESCurrent liabilitiesPayable for securities purchased 4,098,314 1,177,821 1,196,779Redemptions payable 17,924 118,592 17,235Unrealized loss on currency spot
contracts – 11,440 10,378
4,116,238 1,307,853 1,224,392
Net Assets attributable to holdersof redeemable units $600,747,828 $772,561,737 $448,413,766
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLEUNITS PER SERIES
Pinnacle Series Units $ 67,945,732 $ 58,232,198 $ 47,353,123Series F Units $ 746,697 $ 778,502 $ 430,791Series I Units $532,055,399 $713,551,037 $400,629,852
UNITS OUTSTANDINGPinnacle Series Units 5,833,723 5,004,030 5,034,866Series F Units 63,610 66,466 45,397Series I Units 44,408,986 59,631,634 41,441,228
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLEUNITS PER UNIT
Pinnacle Series Units $ 11.65 $ 11.64 $ 9.41Series F Units $ 11.74 $ 11.71 $ 9.49Series I Units $ 11.98 $ 11.97 $ 9.67
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 13,379,778 $ 11,939,736Interest for distribution purposes 370,406 573,787Net realized gain (loss) on non-derivative financial
assets 101,574,535 23,823,477Net gain (loss) foreign exchange 748,745 (267,460)Change in unrealized appreciation (depreciation) of
non-derivative financial assets (105,066,394) 105,860,197Change in unrealized appreciation (depreciation) of
currency spots 16,613 (1,304)
Net gain (loss) on investments 11,023,683 141,928,433Securities lending 77,778 167,818Net realized (gain) loss foreign exchange on cash (1,338,696) 137,660Other income – 1,044
Total income (loss) 9,762,765 142,234,955
EXPENSESManagement fees (note 5) 8,154 5,785Administration fees (note 6) 129,554 –Harmonized Sales Tax/Goods and Services Tax 32,481 24,163Audit fees 13,144 17,727Independent Review Committee fees 1,474 1,270Custodian fees 65,093 72,751Filing fees 11,055 16,775Legal fees 6,823 7,554Unitholder reporting costs 13,343 6,962Unitholder administration and service fees 108,777 207,923Foreign withholding taxes/tax reclaims 1,972,567 1,227,274Transaction costs 883,871 473,584
Total expenses 3,246,336 2,061,768Absorbed expenses (1,933) (1,959)
Net expenses 3,244,403 2,059,809
Increase (decrease) in Net Assets attributable to holdersof redeemable units from operations $ 6,518,362 $140,175,146
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS FROMOPERATIONS PER SERIES
Pinnacle Series Units $ 1,196,057 $ 11,792,187Series F Units $ 4,883 $ 128,869Series I Units $ 5,317,422 $128,254,090
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS FROMOPERATIONS PER UNIT*
Pinnacle Series Units $ 0.23 $ 2.39Series F Units $ 0.07 $ 2.35Series I Units $ 0.13 $ 2.54
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 5,292,357 4,928,908Series F Units 70,258 54,816Series I Units 41,671,799 50,491,128
* 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: Thornburg Investment Management, Inc.
The accompanying notes are an integral part of these financial statements.
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Scotia Private International Equity Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – BEGINNING OF PERIOD
Pinnacle Series Units $ 58,232,198 $ 47,353,123Series F Units 778,502 430,791Series I Units 713,551,037 400,629,852
772,561,737 448,413,766
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS FROMOPERATIONS
Pinnacle Series Units 1,196,057 11,792,187Series F Units 4,883 128,869Series I Units 5,317,422 128,254,090
6,518,362 140,175,146
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLEUNITS
From net investment incomePinnacle Series Units (1,008,528) (745,180)Series F Units (3,468) (5,087)Series I Units (9,011,303) (10,500,258)
(10,023,299) (11,250,525)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 16,838,080 9,053,521Series F Units 151,186 247,384Series I Units 184,828,195 207,713,804
Reinvested distributionsPinnacle Series Units 1,005,890 744,276Series F Units 3,208 4,881Series I Units 9,011,303 10,500,258
Payments on redemptionPinnacle Series Units (8,317,965) (9,965,729)Series F Units (187,614) (28,336)Series I Units (371,641,255) (23,046,709)
(168,308,972) 195,223,350
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 9,713,534 10,879,075Series F Units (31,805) 347,711Series I Units (181,495,638) 312,921,185
(171,813,909) 324,147,971
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – END OF PERIOD
Pinnacle Series Units 67,945,732 58,232,198Series F Units 746,697 778,502Series I Units 532,055,399 713,551,037
$ 600,747,828 $772,561,737
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 6,518,362 $ 140,175,146Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (101,574,535) (23,823,477)
Net unrealized (gain) loss foreign exchange on cash (35,342) (156,571)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets 105,066,394 (105,860,197)Change in unrealized (appreciation) depreciation of
currency spot contracts (16,613) 1,304Purchases of non-derivative financial assets (539,927,377) (377,345,848)Proceeds from sale of non-derivative financial assets 693,308,022 202,954,291Transaction costs 883,871 473,584Accrued investment income (13,796) 67,226
Net cash provided by (used in) operating activities 164,208,986 (163,514,542)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 201,748,387 217,175,734Amounts paid on redemption of redeemable units (380,247,502) (32,939,417)Distributions to unitholders of redeemable units (2,898) (1,111)
Net cash provided by (used in) financing activities (178,502,013) 184,235,206Net unrealized (gain) loss foreign exchange on cash 35,342 156,571Net increase (decrease) in cash (14,293,027) 20,720,664Cash (Bank Indebtedness) at beginning of period 44,657,517 23,780,282
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 30,399,832 $ 44,657,517
Interest received(1) 374,372 557,980Dividends received, net of withholding taxes(1) 11,389,449 10,795,495
(1) Classified as operating items.
Portfolio Advisor: Thornburg Investment Management, Inc.
The accompanying notes are an integral part of these financial statements.
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Scotia Private International Equity Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 95.5%Brazil – 1.6%
334,088 Itau Unibanco Holding SA ADR 5,054,908 5,044,081720,656 Kroton Educacional SA 5,604,579 4,820,197
10,659,487 9,864,278
Denmark – 2.4%300,720 Novo Nordisk A/S, Class B 9,710,028 14,765,538
France – 11.1%202,049 Accor SA 10,844,683 10,503,950
3,359 Hermes International 1,355,575 1,389,69068,873 LVMH Moet Hennessy Louis Vuitton SA 11,315,223 12,636,66664,138 Pernod Ricard SA 8,190,181 8,251,15683,291 Publicis Groupe 5,523,973 6,921,65255,914 Renault SA 4,966,635 4,740,792
163,101 Safran SA 11,680,140 11,647,573183,644 Total SA 13,320,813 10,986,041
67,197,223 67,077,520
Germany – 1.3%86,801 Fresenius Medical Care AG & Co. KGaA 5,889,599 7,537,400
Hong Kong – 8.7%3,102,934 AIA Group Ltd. 15,342,460 19,830,3051,072,925 China Mobile Limited 12,600,659 14,628,637
861,656 Galaxy Entertainment Group Limited 6,008,245 5,566,899298,621 Hong Kong Exchanges & Clearing Limited 5,549,721 7,624,321270,421 Tencent Holdings Limited 4,385,009 4,503,252
43,886,094 52,153,414
India – 2.7%1,205,775 ICICI Bank Limited ADR 14,194,844 16,161,891
Italy – 1.1%2,006,502 Intesa Sanpaolo SpA 5,430,899 6,734,763
Japan – 10.3%377,846 Kubota Corporation 5,738,948 6,367,428121,623 Nippon Telegraph and Telephone Corporation 8,652,216 7,262,964272,033 Olympus Corporation 10,736,236 11,123,777362,508 Sony Corporation 8,846,498 8,564,764170,881 Tokyo Electron Limited 12,476,892 15,048,944184,890 Toyota Motor Corporation 9,244,566 13,380,386
55,695,356 61,748,263
Netherlands – 6.9%73,463 Altice S.A. 5,044,483 6,726,18461,938 ASML Holding NV 5,126,073 7,699,339
1,230,223 ING Groep NV 17,495,682 18,481,258250,566 Koninklijke Philips Electronics NV 8,468,815 8,441,205
36,135,053 41,347,986
South Korea – 0.5%65,343 Korea Electric Power Corporation 3,089,772 2,934,874
Spain – 3.6%205,434 Amadeus IT Holding SA, Class A 7,767,313 9,471,697
1,142,710 Banco Bilbao Vizcaya Argentaria, SA 14,459,533 12,478,255
22,226,846 21,949,952
Sweden – 2.3%151,370 Hennes & Mauritz AB, Class B 5,719,727 7,287,642258,609 Svenska Cellulosa AB SCA, Class B 7,461,123 6,481,971
13,180,850 13,769,613
Switzerland – 11.0%166,213 Holcim Ltd. 14,606,221 13,694,432168,026 Julius Baer Group Ltd. 6,797,577 8,896,799103,115 Nestle SA 7,715,118 8,769,883140,459 Novartis AG 10,871,206 14,987,966
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Switzerland (cont’d)
19,554 Roche Holdings AG 5,179,389 6,149,341666,652 UBS Group AG 14,414,975 13,296,162
59,584,486 65,794,583
United Kingdom – 23.3%1,050,411 Aviva PLC 9,834,309 9,133,959
381,985 BG Group PLC 6,081,581 5,900,4141,881,369 BT Group PLC 13,085,070 13,552,812
223,548 Burberry Group PLC 4,963,934 6,573,371741,175 Compass Group PLC 12,448,787 14,660,031653,095 Experian PLC 12,482,347 12,784,00593,516 Indivior PLC 202,441 252,700
3,362,690 ITV PLC 12,652,216 12,999,9952,338,637 Kingfisher PLC 11,679,258 14,301,302
284,856 Liberty Global PLC 9,577,189 15,970,0517,998,137 Lloyds Banking Group PLC 10,994,313 10,960,347
93,516 Reckitt Benkiser Group PLC 6,797,595 8,754,667113,844 Rio Tinto PLC 6,961,946 6,086,766132,910 SABMiller PLC 5,842,113 7,982,179
123,603,099 139,912,599
United States – 8.7%68,692 Actavis Inc. 17,062,785 20,539,04420,565 Baidu, Inc. 2,963,325 5,440,644
304,331 Nielsen Holdings N.V. 14,725,888 15,790,460104,445 Schlumberger Limited 9,387,882 10,352,382
44,139,880 52,122,530
TOTAL INVESTMENT PORTFOLIO 514,623,516 573,875,204
Currency Spot Contracts – 0.0% 5,173OTHER ASSETS, LESS LIABILITIES – 4.5% 26,867,451
NET ASSETS – 100.0% 600,747,828
Portfolio Advisor: Thornburg Investment Management, Inc.
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private International Equity Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014CURRENCY SPOT CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation/
(Depreciation)
Jan. 2, 2015 British Pound 2,149,041 Canadian Dollar 3,882,672 3,882,673 4,320Jan. 5, 2015 British Pound 116,836 Canadian Dollar 211,081 211,081 241Jan. 5, 2015 Canadian Dollar 127,292 European Euro 90,229 126,680 612
5,173
The currency spot contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.
Portfolio Adviser: Thornburg Investment Management, Inc.
The accompanying notes are an integral part of these financial statements.
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Scotia Private International Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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 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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $772,540,030 $448,292,324
Revaluation of Investments at FVTPL 21,707 121,442
Net assets attributable to holders of redeemable units $772,561,737 $448,413,766
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $140,274,881
Revaluation of Investments at FVTPL (99,735)
Increase (decrease) in net assets attributable to holders of redeemable units $140,175,146
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
European Euro 144,520,938 24.1 14,452,094 2.4
British Pound 128,036,302 21.3 12,803,630 2.1
US Dollar 89,298,553 14.9 8,929,855 1.5
Swiss Franc 65,794,583 11.0 6,579,458 1.1
Japanese Yen 61,748,263 10.3 6,174,826 1.0
Hong Kong Dollar 52,153,418 8.7 5,215,342 0.9
Danish Krone 14,765,538 2.5 1,476,554 0.2
Swedish Krona 13,769,613 2.3 1,376,961 0.2
Brazilian Real 4,820,197 0.8 482,020 0.1
South Korean Won 2,934,874 0.5 293,487 0.0
Total 577,842,279 96.4 57,784,227 9.5
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Scotia Private International Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
European Euro 189,307,427 24.5 18,930,743 2.5
Japanese Yen 140,547,934 18.2 14,054,793 1.8
British Pound 134,817,455 17.5 13,481,745 1.7
U.S. Dollar 74,339,183 9.6 7,433,918 1.0
Swiss Franc 69,034,550 8.9 6,903,455 0.9
Hong Kong Dollar 60,003,880 7.8 6,000,388 0.8
Swedish Krona 28,955,895 3.7 2,895,589 0.4
Danish Krone 19,748,629 2.6 1,974,863 0.3
Korean Won 5,924,234 0.8 592,423 0.1
Brazilian Real 3,074,733 0.4 307,473 0.0
Mexican Peso 2,628,222 0.3 262,822 0.0
Total 728,382,142 94.3 72,838,212 9.5
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
European Euro 111,154,535 24.8 11,115,453 2.5
British Pound 92,911,608 20.7 9,291,161 2.1
U.S. Dollar 55,973,833 12.5 5,597,383 1.2
Hong Kong Dollar 43,605,325 9.7 4,360,533 1.0
Japanese Yen 41,904,224 9.3 4,190,422 0.9
Swiss Franc 34,444,303 7.7 3,444,430 0.8
Swedish Krona 17,192,511 3.8 1,719,251 0.4
Danish Krone 11,924,476 2.7 1,192,448 0.3
Brazilian Real 5,576,716 1.2 557,672 0.1
Korean Won 4,578,963 1.0 457,896 0.1
Mexican Peso 4,361,096 1.0 436,110 0.1
Total 423,627,590 94.4 42,362,759 9.5
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 December 31,2014, approximately 95.5% (December 31, 2013 – 94.2%, January 1, 2013 – 94.5%) 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 $57,387,520 (December 31, 2013 – $72,737,364, January 1, 2013 – $42,363,490). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
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Scotia Private International Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $4,116,238 $ – $1,296,413 $ – $1,214,014Unrealized loss on currency spot contracts – – – 11,440 – 10,378Redeemable units 600,747,828 – 772,561,737 – 448,413,766 –
$600,747,828 $4,116,238 $772,561,737 $1,307,853 $448,413,766 $1,224,392
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Argentina – 0.4 –
Belgium – 1.5 –
Brazil 1.6 0.9 3.0
China – 0.8 1.4
Denmark 2.4 2.6 2.7
Finland – 1.0 –
France 11.1 8.4 9.0
Germany 1.3 7.2 15.1
Hong Kong 8.7 7.0 8.3
India 2.7 – –
Italy 1.1 1.9 –
Israel – – 1.5
Japan 10.3 18.0 9.3
Mexico – 0.3 1.0
Netherlands 6.9 3.8 1.1
South Korea 0.5 0.8 1.0
Spain 3.6 2.1 –
Sweden 2.3 3.8 4.1
Switzerland 11.0 8.9 7.7
Taiwan – 0.7 –
United Kingdom 23.3 17.4 21.2
United States 8.7 6.7 8.1
Currency Spot Contracts 0.0 0.0 0.0
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Scotia Private International Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $89,298,548 $484,576,656 $ – $573,875,204
Currency Spot Contracts – Assets 5,173 – – 5,173
$89,303,721 $484,576,656 $ – $573,880,377
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $77,065,460 $650,329,888 $ – $727,395,348
Currency Spot Contracts – Liabilities (11,440) – – (11,440)
$77,054,020 $650,329,888 $ – $727,383,908
Juanuary 1, 2013 Level 1 Level 2 Level 3 Total
Equities $65,425,358 $358,330,983 $ – $423,756,341
Currency Spot Contracts – Assets 242.00 – – 242.00
$65,425,600 $358,330,983 $ – $423,756,583
Currency Spot Contracts – Liabilities (10,378) – – (10,378)
$65,415,222 $358,330,983 $ – $423,746,205
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 11.65 11.65 11.64 11.64
Series F 11.74 11.74 11.71 11.71
Series I 11.98 11.98 11.97 11.97
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Scotia Private International Small to Mid Cap Value Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $36,948,323 $33,225,426 $27,348,226Unrealized gain on currency spot
contracts – 148 –Cash 457,571 301,105 158,755Accrued investment income 19,139 25,485 27,365Subscriptions receivable 38,152 164,318 1,733
37,463,185 33,716,482 27,536,079
LIABILITIESCurrent liabilitiesRedemptions payable 11,696 17,862 4,942
Net Assets attributable to holders ofredeemable units $37,451,489 $33,698,620 $27,531,137
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $34,167,903 $31,163,533 $25,170,538Series F Units $ 874,340 $ 237,245 $ 117,455Series I Units $ 2,409,246 $ 2,297,842 $ 2,243,144
UNITS OUTSTANDINGPinnacle Series Units 1,525,769 1,498,610 1,705,567Series F Units 38,926 11,345 7,894Series I Units 106,204 109,111 150,134
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 22.39 $ 20.79 $ 14.76Series F Units $ 22.46 $ 20.91 $ 14.88Series I Units $ 22.69 $ 21.06 $ 14.94
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 832,109 $ 751,011Interest for distribution purposes 1,872 2,751Capital gains distributions received (437) 2,425Net realized gain (loss) on non-derivative financial assets 4,265,295 5,117,930Net gain (loss) foreign exchange (11,509) 6,585Change in unrealized appreciation (depreciation) of
non-derivative financial assets (1,615,287) 5,201,914Change in unrealized appreciation (depreciation) of
currency spots (148) 148
Net gain (loss) on investments 3,471,895 11,082,764Securities lending 3,433 3,685Net realized (gain) loss foreign exchange on cash (10,016) (18,094)
Total income (loss) 3,465,312 11,068,355
EXPENSESManagement fees (note 5) 7,021 1,705Administration fees (note 6) 60,158 –Harmonized Sales Tax/Goods and Services Tax 16,821 14,723Audit fees 843 433Independent Review Committee fees 92 890Custodian fees 36,188 66,736Filing fees 11,098 16,738Legal fees 432 11Unitholder reporting costs 10,027 5,789Unitholder administration and service fees 53,250 69,250Overdraft charges 866 1,363Foreign withholding taxes/tax reclaims 92,069 75,863Transaction costs 46,033 45,127
Total expenses 334,898 298,628Absorbed expenses (8,987) (24,008)
Net expenses 325,911 274,620
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 3,139,401 $10,793,735
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES
Pinnacle Series Units $ 2,886,370 $ 9,923,041Series F Units $ 27,596 $ 60,641Series I Units $ 225,435 $ 810,053
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*
Pinnacle Series Units $ 2.00 $ 6.35Series F Units $ 0.88 $ 6.34Series I Units $ 2.18 $ 6.48
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 1,439,699 1,561,599Series F Units 31,466 9,569Series I Units 103,469 124,932
* 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: Munder Capital Management
The accompanying notes are an integral part of these financial statements.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Pinnacle Series Units $31,163,533 $25,170,538Series F Units 237,245 117,455Series I Units 2,297,842 2,243,144
33,698,620 27,531,137
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 2,886,370 9,923,041Series F Units 27,596 60,641Series I Units 225,435 810,053
3,139,401 10,793,735
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (491,146) (489,825)Series F Units (9,036) (2,900)Series I Units (44,665) (45,856)
(544,847) (538,581)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 6,511,732 4,636,503Series F Units 728,533 67,117Series I Units 119,137 42,100
Reinvested distributionsPinnacle Series Units 489,265 488,982Series F Units 8,804 2,697Series I Units 44,665 45,856
Payments on redemptionPinnacle Series Units (6,391,851) (8,565,706)Series F Units (118,802) (7,765)Series I Units (233,168) (797,455)
1,158,315 (4,087,671)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 3,004,370 5,992,995Series F Units 637,095 119,790Series I Units 111,404 54,698
3,752,869 6,167,483
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 34,167,903 31,163,533Series F Units 874,340 237,245Series I Units 2,409,246 2,297,842
$37,451,489 $33,698,620
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 3,139,401 $ 10,793,735Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (4,265,295) (5,117,930)
Net unrealized (gain) loss foreign exchange on cash (6,564) 3,011Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets 1,615,287 (5,201,914)Change in unrealized (appreciation) depreciation of
currency spot contracts 148 (148)Purchases of non-derivative financial assets (25,628,736) (21,669,457)Proceeds from sale of non-derivative financial assets 24,509,814 26,066,974Transaction costs 46,033 45,127Accrued investment income 6,346 1,880
Net cash provided by (used in) operating activities (583,566) 4,921,278
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 7,485,568 4,583,135Amounts paid on redemption of redeemable units (6,749,987) (9,358,006)Distributions to unitholders of redeemable units (2,113) (1,046)
Net cash provided by (used in) financing activities 733,468 (4,775,917)Net unrealized (gain) loss foreign exchange on cash 6,564 (3,011)Net increase (decrease) in cash 149,902 145,361Cash (Bank Indebtedness) at beginning of period 301,105 158,755
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 457,571 $ 301,105
Interest received(1) 1,827 2,687Dividends received, net of withholding taxes(1) 746,431 677,092
(1) Classified as operating items.
Portfolio Advisor: Munder Capital Management
The accompanying notes are an integral part of these financial statements.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 98.7%CANADIAN EQUITIES – 8.3%Energy – 2.2%
36,823 Bankers Petroleum Ltd. 125,376 120,04311,155 Birchcliff Energy Ltd. 113,373 87,23216,209 Cardinal Energy Ltd. 290,544 218,9847,210 Enerflex Ltd. 126,401 118,172
25,671 Gran Tierra Energy, Inc. 147,275 114,49320,493 Raging River Exploration Inc. 132,491 150,419
935,460 809,343
Materials – 1.6%4,856 Canfor Corporation 77,456 143,932
30,866 Nevsun Resources Ltd. 126,511 138,28085,725 OceanGold Corporation 187,731 173,1654,323 Stella-Jones Inc. 129,408 141,535
521,106 596,912
Industrials – 1.8%20,275 Air Canada 176,082 240,6647,164 Stantec Inc. 146,989 228,7456,320 TransForce, Inc. 157,409 187,009
480,480 656,418
Consumer Discretionary – 0.8%1,975 Cogeco Cable Inc. 120,283 141,489
25,570 Entertainment One Ltd 161,749 148,333
282,032 289,822
Health Care – 0.3%2,524 Concordia Healthcare Corporation 105,914 117,997
Financials – 1.2%5,002 Canadian Apartment Properties Real Estate
Investment Trust 87,772 125,7005,876 Gluskin Sheff + Associates Inc. 137,596 162,7063,531 Home Capital Group Inc. 76,167 169,453
301,535 457,859
Utilities – 0.4%5,181 Capital Power Corporation 111,950 134,706
TOTAL CANADIAN EQUITIES 2,738,477 3,063,057
FOREIGN EQUITIES – 90.4%Australia – 4.8%
20,779 Aristocrat Leisure Ltd. 115,216 128,6538,745 Bank of Queensland Limited 106,024 100,362
169,976 Beach Energy Limited 227,836 168,89850,222 CSR Ltd. 178,964 183,81539,518 Echo Entertainment Group Ltd. 130,540 140,56732,619 G8 Education Limited 145,511 128,10452,941 Independence Group NL 242,422 220,35931,206 Investa Office Fund 89,501 107,04422,643 IOOF Holdings Limited 197,661 189,64921,216 M2 Telecommunications Group Ltd. 162,838 162,52625,078 Primary Health Care Ltd. 85,369 111,33236,790 RCR Tomlinson Limited 81,520 76,48076,797 STW Communications Group Ltd. 110,830 70,179
1,874,232 1,787,968
Belgium – 1.0%2,360 Kinepolis 39,565 110,8562,547 Melexis NV 127,547 133,1215,014 Mobistar SA 125,117 137,735
292,229 381,712
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)Denmark – 0.9%
1,965 Pandora AS 36,925 184,9604,277 Topdanmark AS 75,611 161,432
112,536 346,392
Finland – 0.4%26,019 Sponda OYJ 134,570 132,221
France – 7.6%2,252 Alten SA 129,072 111,7332,659 Atos Origin SA 218,904 244,1377,772 Euronext NV 230,444 290,4511,909 Fonciere des Regions 153,265 204,960
16,698 Havas SA 148,775 158,1751,903 Imerys SA 137,051 162,8262,711 Ingenico SA 106,407 330,4974,054 Korian-Medica 108,468 171,8425,308 Mercialys 128,608 137,3762,630 Nexity SA 121,920 115,4414,157 Saft Groupe S.A. 167,663 145,9834,788 Teleperformance 205,736 377,7182,616 Valeo SA 187,923 378,064
2,044,236 2,829,203
Germany – 6.1%8,704 Alstria Office Real Estate Investment Trust AG 97,934 125,6312,182 Deutsche Euroshop AG 83,213 110,8654,828 Duerr AG 117,473 496,5665,882 Freenet AG 80,502 195,6452,000 Hannover Rueckversicherung AG 95,221 210,489
957 Krones AG 87,150 108,4891,082 MTU Aero Engines Holding AG 108,162 109,614
15,555 SAF-Holland SA 195,027 242,3567,200 Stroeer Media AG 160,546 248,7386,328 TUI AG 81,897 121,6953,242 United Internet AG 163,406 170,5816,158 VTG AG 133,828 158,618
1,404,359 2,299,287
Hong Kong – 2.8%26,000 Dah Sing Financial Group 131,747 175,09333,000 Great Eagle Holdings Limited 104,463 124,24082,000 Man Wah Holdings Limited 148,219 156,731
208,000 PAX Global Technology Ltd. 146,120 247,862254,811 Shun Tak Holdings Ltd. 149,674 136,386142,000 Sound Global Ltd. 182,521 190,741
862,744 1,031,053
Italy – 3.5%31,058 Amplifon SpA 214,425 213,36132,613 Anima Holding S.p.A. 205,540 190,5997,912 Brembo SpA 105,016 307,654
23,390 Credito Emiliano SpA 141,446 204,5247,135 Gtech Spa 144,041 185,207
12,009 Recordati SpA 106,585 216,628
917,053 1,317,973
Japan – 18.1%13,900 CKD Corporation 163,785 152,53444,000 Clarion Co., Ltd. 77,132 158,66737,000 DAIHEN Corporation 174,217 216,43012,000 Doutor Nichires Holdings Co., Ltd. 224,748 199,38523,097 Ebara Corp 127,131 108,89913,000 Fuji Oil Co., Ltd. 224,765 193,32242,000 Fujikura Ltd. 205,918 198,989
Portfolio Advisor: Munder Capital Management
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)Japan (cont’d)
24,100 Haseko Corporation 206,009 224,9149,000 Hitachi Kokusai Electric Inc. 118,365 146,8723,000 JAFCO Co., Ltd. 161,723 119,127
21,000 Japan Aviation Electronics Industry, Limited. 213,526 534,4113,700 K’s Holdings Corporation 111,693 113,033
13,000 Kagoshima Bank, Ltd., The 109,984 94,81314,500 Kyowa Exeo Corporation 163,516 179,77426,000 Makino Milling Machine Co., Ltd. 232,760 224,1369,900 Matsui Securities Co. Ltd. 101,487 99,8483,600 Message Co., Ltd. 145,083 114,6475,300 Nihon Kohden Corporation 159,931 302,731
29 Nippon Accommodations Fund Inc. 119,370 132,7965,300 NS Solutions Corporation 136,885 165,0702,300 PIGEON CORPORATION 59,167 155,7492,000 Relo Holdings Inc. 77,967 164,790
12,000 San-In Godo Bank, Ltd., The 108,265 104,83124,000 SANKYU INC. 116,628 113,57734,200 Sanwa Shutter Corporation 174,448 276,56619,000 Seino Transportation Co. Ltd. 185,387 221,80119,000 Shiga Bank, Ltd., The 130,667 117,6554,300 Sohgo Security Services Company Ltd. 84,194 119,971
13,900 Sumitomo Forestry Co., Ltd. 121,859 158,06440,000 Sumitomo Osaka Cement Company Ltd. 132,978 132,58410,800 Sun Frontier Fudousan Co., Ltd. 162,001 114,98348,500 Takara Leben Co., Ltd. 170,966 243,0929,200 Tokai Rika Co., Ltd. 163,827 224,2797,300 Tokyo Ohka Kogyo Co., Ltd. 166,522 259,2255,800 Tokyo Seimitsu Co., Ltd. 104,020 135,5354,900 TS Tech Co Ltd. 144,748 133,186
29,000 Tsubakimoto Chain Co. 202,330 268,1532,500 Yaoko Co., Ltd. 173,906 166,814
5,657,908 6,791,253
Netherlands – 1.8%5,749 Aalberts Industries NV 154,381 197,0713,656 ASM International NV 130,901 178,611
31,017 PostNL NV 160,421 133,8934,487 TKH Group NV 160,983 165,080
606,686 674,655
New Zealand – 0.4%28,783 Fisher & Paykel Healthcare Corporation Ltd. 116,373 162,535
Norway – 1.8%14,580 Borregaard ASA 107,176 125,44483,369 BW Offshore Ltd. 115,238 96,9835,174 Leroy Seafood Group ASA 165,776 219,402
24,806 SpareBank 1 SMN 200,271 223,712
588,461 665,541
Portugal – 0.3%37,235 Redes Energeticas Nacionais SA 140,889 125,704
Singapore – 1.3%99,000 CWT Ltd. 145,730 138,59131,000 M1 Ltd/Singapore 84,256 97,984
121,000 Mapletree Industrial Trust 141,922 157,058158,000 Starhill Global REIT 112,512 110,640
484,420 504,273
South Korea – 3.6%2,029 BGF Retail Co., Ltd. 144,052 163,5983,182 Boryung Pharmaceutical Co., Ltd. 146,100 135,0744,296 Hansae Co., Ltd. 121,530 180,700
978 Hanssem Co. Ltd. 66,884 117,719
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)South Korea (cont’d)
2,940 KIWOOM Securities Co., Ltd. 151,741 142,5455,030 Seah Besteel Corp. 151,574 148,3024,142 SKC Co., Ltd. 148,652 116,1666,722 SL Corp. 155,322 123,7409,349 Sungwoo Hitech Co., Ltd. 163,747 114,9866,576 Tovis Co., Ltd. 124,109 113,465
1,373,711 1,356,295
Spain – 1.3%26,689 Bankinter, S.A. 156,093 246,9142,486 Red Electrica Corp SA 136,847 253,215
292,940 500,129
Sweden – 3.7%1,608 Axfood AB 106,771 111,1145,269 Bilia AB 140,263 184,7958,985 Boliden AB 165,906 166,152
17,692 Fastighets AB Balder, Series B 106,165 288,3352,861 Indutrade AB 128,442 131,9634,710 Loomis AB, Class B 145,614 158,461
13,627 Nobia AB 127,534 141,4985,697 Trelleborg AB 86,730 111,3645,098 Wihlborgs Fastigheter AB 75,847 107,998
1,083,272 1,401,680
Switzerland – 7.7%2,844 Actelion Ltd. 142,214 379,6333,171 Aryzta AG 185,460 282,7016,126 Clariant, AG 119,940 119,357
234 Flughafen Zuerich AG 164,253 182,002275 Georg Fischer AG 159,979 200,756119 Givaudan SA 152,734 246,881202 Helvetia Holding AG 72,658 111,157
2,106 Julius Baer Group Ltd. 111,433 111,51017,651 Logitech International SA 146,484 277,0141,975 Lonza Group AG 211,926 258,249
12,827 OC Oerlikon Corporation AG 110,412 186,256741 Straumann Holding AG 161,488 215,995
1,119 Swiss Life Holding AG 121,806 306,816
1,860,787 2,878,327
United Kingdom – 20.6%15,531 Ashtead Group PLC 67,717 318,63762,095 Barratt Developments PLC 144,646 524,73734,805 Beazley PLC 126,272 178,9427,071 Berendsen PLC 57,198 139,910
10,550 Bodycote PLC 76,475 122,84321,719 Britvic PLC 198,006 262,64117,365 Cineworld Group PLC 117,573 129,6287,900 Close Brothers Group PLC 174,621 211,4275,950 Dialog Semiconductor plc 155,805 244,049
21,475 Direct Line Insurance Group PLC 121,268 112,40232,295 Dixons Carphone PLC 209,129 269,93526,307 DS Smith PLC 92,910 152,1393,387 Go-Ahead Group PLC 120,410 150,519
20,438 Greggs PLC 223,701 269,23579,351 Hansteen Holdings PLC 136,586 154,4367,406 Hikma Pharmaceuticals PLC 122,259 263,563
54,907 Howden Joinery Group PLC 58,323 396,20416,417 Inchcape PLC 100,276 213,22717,351 Interserve PLC 190,437 173,16514,274 Investec PLC 132,795 138,37639,994 ITV PLC 51,491 154,615
Portfolio Advisor: Munder Capital Management
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United Kingdom (cont’d)
18,948 Keller Group PLC 261,261 298,35676,548 Man Group PLC 172,798 219,79618,502 Mondi PLC 177,177 346,17229,809 Pace PLC 116,450 185,58938,598 Paragon Group Companies PLC 94,301 289,08286,698 Petra Diamonds Ltd. 265,239 302,31414,513 Playtech PLC 188,997 180,6473,963 Provident Financial PLC 151,281 175,0433,854 Renishaw PLC 121,494 135,612
24,121 Senior PLC 63,548 131,0053,589 Travis Perkins PLC 110,659 119,9096,608 TUI AG 100,502 123,225
18,338 Unite Group PLC 98,756 154,19331,022 United Drug PLC 152,371 214,63516,606 William Hill PLC 107,824 108,3715,839 WS Atkins plc 139,753 143,196
5,000,309 7,707,775
United States – 2.7%5,615 AerCap Holdings NV 112,067 252,9584,055 Canadian Solar Inc. 159,120 113,8348,845 iShares MSCI EAFE Index Fund 629,914 624,498
901,101 991,290
TOTAL INVESTMENT PORTFOLIO 28,487,293 36,948,323
OTHER ASSETS, LESS LIABILITIES – 1.3% 503,166
NET ASSETS – 100.0% 37,451,489
Portfolio Adviser: Munder Capital Management
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $33,688,501 $27,524,344
Revaluation of Investments at FVTPL 10,119 6,793
Net assets attributable to holders of redeemable units $33,698,620 $27,531,137
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $10,790,409
Revaluation of Investments at FVTPL 3,326
Increase (decrease) in net assets attributable to holders of redeemable units $10,793,735
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
European Euro 8,511,007 22.7 851,101 2.3
British Pound 7,650,321 20.4 765,032 2.0
Japanese Yen 6,823,728 18.2 682,373 1.8
Swiss Franc 2,881,844 7.7 288,184 0.8
Australian Dollar 1,796,411 4.8 179,641 0.5
Swedish Krona 1,401,680 3.7 140,168 0.4
South Korean Won 1,356,296 3.6 135,630 0.4
Hong Kong Dollar 1,043,325 2.8 104,333 0.3
US Dollar 1,013,647 2.7 101,365 0.3
Norwegian Krone 668,284 1.8 66,828 0.2
Singapore Dollar 508,372 1.4 50,837 0.1
Danish Krone 346,392 0.9 34,639 0.1
New Zealand Dollar 164,046 0.4 16,405 0.0
Total 34,165,353 91.1 3,416,536 9.2
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Scotia Private International Small to Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
European Euro 7,773,192 23.1 777,319 2.3
British Pound 7,095,478 21.1 709,548 2.1
Japanese Yen 6,134,328 18.2 613,433 1.8
Swiss Franc 2,770,510 8.2 277,051 0.8
Korean Won 1,595,052 4.7 159,505 0.5
Australian Dollar 1,559,979 4.6 155,998 0.5
Swedish Krona 781,964 2.3 78,196 0.2
Hong Kong Dollar 666,863 2.0 66,686 0.2
U.S. Dollar 627,244 1.9 62,724 0.2
Danish Krone 567,427 1.7 56,743 0.2
Norwegian Krone 486,539 1.4 48,654 0.1
Singapore Dollar 416,451 1.2 41,645 0.1
New Zealand Dollar 116,858 0.3 11,686 0.0
Total 30,591,885 90.7 3,059,188 9.0
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
European Euro 6,504,764 23.6 650476 2.4
British Pound 5,520,156 20.1 552016 2.0
Japanese Yen 4,631,126 16.8 463113 1.7
Australian Dollar 2,336,972 8.5 233697 0.8
Swiss Franc 2,227,534 8.1 222753 0.8
Korean Won 1,210,480 4.4 121048 0.4
Danish Krone 525,714 1.9 52571 0.2
Norwegian Krone 485,107 1.8 48511 0.2
Singapore Dollar 422,596 1.5 42260 0.2
Swedish Krona 413,899 1.5 41390 0.2
Hong Kong Dollar 317,349 1.2 31735 0.1
U.S. Dollar 247,892 0.9 24789 0.1
New Zealand Dollar 32 0.0 3 0.0
Total 24,843,621 90.3 2,484,362 9.1
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 December 31,2014, approximately 98.7% (December 31, 2013 – 98.6%, January 1, 2013 – 99.3%) 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 $3,694,832 (December 31, 2013 – $3,321,531, January 1, 2013 – $2,734,143 ). In practice, actual resultswill differ from this sensitivity analysis and the difference could be material.
iv) Credit Rate Risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $11,696 $ – $17,862 $ – $4,942Payable for currency spot contracts – – – – – –Redeemable units 37,451,489 – $33,698,620 – $27,531,137 –
$37,451,489 $11,696 $33,698,620 $17,862 $27,531,137 $4,942
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Australia 4.8 4.3 8.1Austria – 0.8 1.9Belgium 1.0 0.5 0.8Bermuda – – 0.4Cayman Island – – 0.4Canada 8.3 7.8 9.6Denmark 0.9 1.7 1.9Finland 0.4 1.7 1.9France 7.6 6.3 6.3Germany 6.1 7.0 6.8Hong Kong 2.8 2.0 1.2Israel – – 0.2Italy 3.5 3.6 3.3Japan 18.1 17.9 16.4Netherlands 1.8 1.6 1.6New Zealand 0.4 0.4 –Norway 1.8 1.4 1.4Portugal 0.3 – –Singapore 1.3 1.2 1.5South Korea 3.6 5.0 4.8Spain 1.3 2.0 1.4Sweden 3.7 2.3 1.5Switzerland 7.7 8.2 7.0United Kingdom 20.6 21.4 20.5United States 2.7 1.5 0.4Currency Spot Contracts – 0.0 –
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $3,906,012 $33,042,311 $ – $36,948,323
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $3,269,480 $29,955,946 $ – $33,225,426
Currency Spot Contracts – Assets 148 – – 148
$3,269,628 $29,955,946 $ – $33,225,574
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The accompanying notes are an integral part of these financial statements.
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Scotia Private International Small to Mid Cap Value Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $2,814,527 $24,533,699 $ – $27,348,226
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pinnacle Series 22.39 22.39 20.79 20.79
Series F 22.46 22.46 20.91 20.91
Series I 22.69 22.69 21.06 21.06
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Scotia Private Emerging Markets Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $168,539,051 $205,227,086 $127,683,212Unrealized gain on currency spot
contracts 73 – 1,235Cash 6,045,269 12,151,192 5,209,842Accrued investment income 277,091 174,586 102,511Receivable for securities sold 32,929 – 331,556Subscriptions receivable 96,457 188,235 18,812
174,990,870 217,741,099 133,347,168
LIABILITIESCurrent liabilitiesPayable for securities purchased 2,413,079 – 235,601Redemptions payable 22,084 38,835 7,146Unrealized loss on currency spot
contracts 2,495 – 917
2,437,658 38,835 243,664
Net Assets attributable to holders ofredeemable units $172,553,212 $217,702,264 $133,103,504
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $ 33,606,228 $ 26,472,471 $ 22,168,661Series I Units $125,313,384 $171,564,468 $ 95,036,876Series M Units $ 13,633,600 $ 19,665,325 $ 15,897,967
UNITS OUTSTANDINGPinnacle Series Units 3,479,000 2,922,260 2,481,754Series I Units 12,805,973 18,695,803 10,505,631Series M Units 1,411,761 2,173,362 1,779,549
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 9.66 $ 9.06 $ 8.93Series I Units $ 9.79 $ 9.18 $ 9.05Series M Units $ 9.66 $ 9.05 $ 8.93
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 4,590,781 $ 3,356,560Interest for distribution purposes 122,143 344,661Net realized gain (loss) on non-derivative financial assets 7,308,957 (5,612,082)Net gain (loss) foreign exchange 319,937 (65,916)Change in unrealized appreciation (depreciation) of
non-derivative financial assets 2,938,278 10,301,622Change in unrealized appreciation (depreciation) of
currency spots (2,422) (318)
Net gain (loss) on investments 15,277,674 8,324,527Securities lending 57,838 14,409Net realized (gain) loss foreign exchange on cash (1,040,158) (105,159)
Total income (loss) 14,295,354 8,233,777
EXPENSESManagement fees (note 5) 102,880 110,269Administration fees (note 6) 61,770 –Harmonized Sales Tax/Goods and Services Tax 25,632 20,925Audit fees 3,981 4,694Independent Review Committee fees 442 954Custodian fees 72,546 75,099Filing fees 11,937 17,887Legal fees 2,067 2,698Unitholder reporting costs 13,992 8,990Unitholder administration and service fees 31,010 54,237Overdraft charges 2,568 –Foreign withholding taxes/tax reclaims 594,877 423,669Transaction costs 703,298 293,209
Total expenses 1,627,000 1,012,631Absorbed expenses – (1,960)
Net expenses 1,627,000 1,010,671
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $12,668,354 $ 7,223,106
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES
Pinnacle Series Units $ 2,622,874 $ 861,508Series I Units $ 8,908,826 $ 6,283,553Series M Units $ 1,136,654 $ 78,045
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT*
Pinnacle Series Units $ 0.81 $ 0.31Series I Units $ 0.71 $ 0.43Series M Units $ 0.73 $ 0.04
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 3,222,200 2,736,228Series I Units 12,626,651 14,539,769Series M Units 1,562,594 1,786,726
* 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: Lee Munder Capital Group
The accompanying notes are an integral part of these financial statements.
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Scotia Private Emerging Markets Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 2,622,874 861,508Series I Units 8,908,826 6,283,553Series M Units 1,136,654 78,045
12,668,354 7,223,106
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (728,462) (324,698)Series I Units (2,941,029) (2,327,171)Series M Units (202,133) (141,716)
(3,871,624) (2,793,585)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 7,981,473 8,252,710Series I Units 45,190,031 73,023,740Series M Units 7,446,193 11,074,977
Reinvested distributionsPinnacle Series Units 727,106 324,243Series I Units 2,941,029 2,327,171Series M Units 195,263 126,097
Payments on redemptionPinnacle Series Units (3,469,234) (4,809,953)Series I Units (100,349,941) (2,779,701)Series M Units (14,607,702) (7,370,045)
(53,945,782) 80,169,239
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 7,133,757 4,303,810Series I Units (46,251,084) 76,527,592Series M Units (6,031,725) 3,767,358
(45,149,052) 84,598,760
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 33,606,228 26,472,471Series I Units 125,313,384 171,564,468Series M Units 13,633,600 19,665,325
$ 172,553,212 $217,702,264
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 12,668,354 $ 7,223,106Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (7,308,957) 5,612,082
Net unrealized (gain) loss foreign exchange on cash (121,591) (34,245)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (2,938,278) (10,301,622)Change in unrealized (appreciation) depreciation of
currency spot contracts 2,422 318Purchases of non-derivative financial assets (335,531,561) (136,429,127)Proceeds from sale of non-derivative financial assets 384,143,683 63,377,539Transaction costs 703,298 293,209Accrued investment income (102,505) (72,075)
Net cash provided by (used in) operating activities 51,514,865 (70,330,815)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 60,709,475 92,182,004Amounts paid on redemption of redeemable units (118,443,628) (14,928,010)Distributions to unitholders of redeemable units (8,226) (16,074)
Net cash provided by (used in) financing activities (57,742,379) 77,237,920Net unrealized (gain) loss foreign exchange on cash 121,591 34,245Net increase (decrease) in cash (6,227,514) 6,907,105Cash (Bank Indebtedness) at beginning of period 12,151,192 5,209,842
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 6,045,269 $ 12,151,192
Interest received(1) 126,350 339,441Dividends received, net of withholding taxes(1) 3,889,192 2,866,036
(1) Classified as operating items.
Portfolio Advisor: Lee Munder Capital Group
The accompanying notes are an integral part of these financial statements.
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Scotia Private Emerging Markets Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 97.6%Foreign Equities – 97.6%United States – 7.8%Exchange-traded Funds – 2.6%
11,293 iPath MSCI India Index ETN 673,059 912,797104,571 iShares MSCI India ETF 2,946,203 3,651,551
3,619,262 4,564,348
Index Units – 4.0%151,648 iShares MSCI Emerging Market Index 6,897,074 6,914,529
Consumer Staples – 0.5%19,389 Companhia Brasileira de Distribuicao Grupo Pao
de Acucar ADR 891,087 828,707
Information Technology – 0.7%96,035 Wipro Limited 1,343,776 1,263,266
TOTAL UNITED STATES EQUITIES 12,751,199 13,570,850
Brazil – 8.6%150,200 Banco Bradesco SA, Preference 2,426,283 2,331,187129,900 Banco do Brasil SA 1,394,330 1,333,996151,100 Braskem S.A. 1,359,327 1,135,41635,700 Companhia Energetica de Sao Paulo, Preference,
Series B 407,063 417,85474,100 Cyrela Brazil Realty SA 503,101 354,40362,300 Empresa Bras De Aeronautica SA 647,542 666,35673,900 Hypermarcas SA 571,724 537,091
173,600 Itau Unibanco Holding SA, Preference 2,658,544 2,620,194367,700 JBS SA 1,483,117 1,797,48385,700 Porto Seguro SA 1,338,037 1,128,477
312,900 Suzano Papel E Celulose Sa 1,322,674 1,536,203117,558 Vale SA ADR, Preference 1,583,201 990,450
15,694,943 14,849,110
China – 7.0%2,448,000 Agricultural Bank of China Limited 1,229,894 1,426,9105,447,000 Bank of China Ltd., Class H 2,645,552 3,539,5071,149,000 China Railway Construction Corporation, Class H 1,155,119 1,693,9782,442,000 Chongqing Rural Commercial Bank Co., Ltd. 1,218,921 1,759,7974,352,392 Industrial and Commercial Bank of China Ltd.,
Class H 3,018,946 3,669,531
9,268,432 12,089,723
Hong Kong – 13.9%1,642,000 Angang Steel Company Limited, Class H 1,152,680 1,614,2541,919,000 China CITIC Bank Corporation Limited 1,331,190 1,779,5391,955,494 China Construction Bank Corporation, Class H 1,586,452 1,847,143
189,500 China Mobile Limited 2,707,238 2,583,7102,642,000 China Power International Development Limited 1,045,399 1,547,3992,222,000 China Railway Group Ltd. 1,377,434 2,113,9471,678,000 China Resources Cement Holding Limited 1,225,073 1,256,034
702,000 Citic Pacific Ltd. 1,426,224 1,382,7722,613,000 Evergrande Real Estate Group Limited 1,178,379 1,222,8879,378,000 GOME Electrical Appliances Holding Limited 1,826,919 1,589,9621,148,829 Huaneng Power International Inc., Class H 1,277,180 1,800,231
493,500 Shimao Property Holdings Limited 1,217,714 1,273,549147,400 Tencent Holdings Limited 2,632,684 2,454,615
1,162,000 Tianjin Developement Holdings Ltd. 1,179,723 992,751378,000 Zhejiang Expressway Co. Ltd. Class H 528,833 509,880
21,693,122 23,968,673
India – 3.4%149,271 ICICI Bank Limited ADR 1,243,132 2,000,78959,024 Reliance Industries Ltd. GDR 1,860,998 1,925,10439,313 Tata Motors Limited 1,149,343 1,929,608
4,253,473 5,855,501
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Foreign Equities (cont’d)Indonesia – 3.1%
1,892,600 INRdofood Sukses Makmur Tbk PT 1,161,750 1,197,41111,836,200 PT Adaro Energy Tbk 1,184,695 1,149,9943,477,400 PT Bank Negara Indonesia (Persero) Tbk 1,253,157 1,970,5105,721,300 PT Perusahaan Perkebunan London Sumatra
Indonesia Tbk 1,223,653 1,003,641
4,823,255 5,321,556
Malaysia – 3.3%797,100 DiGi.Com Berhad 1,403,664 1,626,888216,000 Hong Leong Bank Berhad 1,082,924 1,003,332301,100 IJM Corporation Berhad 587,733 656,675556,300 Telekom Malaysia Berhad 1,355,513 1,266,331
2,209,600 YTL Corporation Berhad 1,205,682 1,163,365
5,635,516 5,716,591
Mexico – 4.7%2,447,100 America Movil SAB de CV 2,680,970 3,165,461
177,200 Arca Continental SAB de CV 1,419,507 1,299,414526,200 Compartamos SAB de CV 1,261,234 1,228,353195,200 Grupo Aeroportuario del Pacifico SAB de CV 1,204,695 1,424,954290,800 Grupo Comercial Chedraui, S.A. de C.V. 1,150,764 981,855
7,717,170 8,100,037
Philippines – 1.6%446,240 BDO Unibank, Inc. 983,001 1,265,207300,520 Universal Robina Corporation 1,073,384 1,517,230
2,056,385 2,782,437
Poland – 0.8%21,581 PKP Cargo SA 585,666 588,67156,109 Polski Koncern Naftowy Orlen SA 833,424 893,665
1,419,090 1,482,336
Russia – 2.3%336,105 Gazprom 3,182,676 1,766,92172,673 Mining and Metallurgical Company Norilsk Nickel 1,406,749 1,193,08422,590 OAO LUKOIL, Sponsored ADR 1,496,879 1,005,369
6,086,304 3,965,374
South Africa – 7.5%115,430 Barloworld Limited 1,174,333 1,104,052296,400 Gold Fields Limited 1,419,961 1,556,57881,693 Liberty Holdings Ltd. 1,032,695 1,005,725
191,276 Mediclinic International Ltd. 1,475,719 1,918,286118,790 MTN Group Limited 2,327,753 2,615,439456,490 Netcare Ltd. 1,188,248 1,731,071303,488 Sappi Ltd. 1,396,563 1,284,07145,917 Tiger Brands Ltd. 1,345,371 1,687,297
11,360,643 12,902,519
South Korea – 12.2%21,930 Dongbu Insurance Co., Ltd. 1,432,058 1,277,4315,042 E-Mart Co Ltd. 1,336,150 1,083,339
20,728 Hankook Tire Co. Ltd. 1,331,073 1,150,12135,553 Hanwha Corppration 1,326,607 1,168,42611,984 Hyundai Hysco Co., Ltd. 939,382 921,91111,229 Hyundai Motor Company 2,264,688 1,988,18795,209 Industrial Bank of Korea 1,229,635 1,414,06542,040 LG Display Co., Ltd. 1,149,493 1,484,65517,879 LG Electronics Inc. 1,432,810 1,114,42815,892 LS Corp. 1,332,177 911,1025,319 Mando Corporation 1,058,965 1,025,301
39,268 Nexen Tire Corporation 648,909 527,6722,801 Samsung Electronics Co., Ltd. 3,159,497 3,926,706
32,718 Shinhan Financial Group Co., Ltd. 1,383,315 1,531,019
Portfolio Advisor: Lee Munder Capital Group
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Emerging Markets Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Foreign Equities (cont’d)South Korea (cont’d)
5,420 SK Corportaion 1,002,332 936,77837,631 SL Corp. 905,658 692,717
21,932,749 21,153,858
Taiwan – 12.4%1,203,000 Advanced Semiconductor Engineering Inc. 1,260,744 1,657,1212,733,000 Au Optronics Corp. 975,719 1,605,301
201,000 Catcher Technology Co. Ltd. 1,542,404 1,792,572425,000 Cheng Uei Precision Industry Co., Ltd. 1,006,320 766,665415,000 Chicony Electronics Co., Ltd. 1,466,084 1,335,714
1,903,000 China Airlines Ltd. 870,497 1,007,604454,000 Fubon Financial Holding Co Ltd 832,814 836,613862,360 Hon Hai Precision Industry Co., Ltd. 2,364,776 2,755,416
1,091,000 King Yuan Electronics Co., Ltd. 1,137,696 1,013,768561,000 Pou Chen Corporation 835,151 783,719312,000 Ruentex Development Co., Ltd. 607,849 574,778
2,493,000 Taishin Financial Holding Co., Ltd. 1,376,236 1,184,942576,818 Taiwan Semiconductor Manufacturing
Company Ltd. 1,882,847 2,949,297857,820 Uni-President Enterprises Corp. 1,533,062 1,566,608
2,822,000 United Microelectronics Corporation 1,298,796 1,513,394
18,990,995 21,343,512
Thailand – 3.8%7,943,500 Hemaraj Land and Developement Public Co. 1,020,844 1,232,354
203,000 Kasikornbank Public Company Limited 1,513,904 1,637,429213,300 PTT Exploration and Production Public Company
Limited 1,149,638 839,890
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Foreign Equities (cont’d)Thailand (cont’d)
8,742,100 Quality Houses Public Company Limited 815,316 1,123,178260,700 Siam Commercial Bank Public Company
Limited 1,678,914 1,672,023
6,178,616 6,504,874
Turkey – 3.9%747,140 Eregli Demir ve Celik Fabrikalari TAS (Erdemir) 1,019,117 1,654,644994,561 Kardemir Karabuk Demir Celik San. ve Tic 827,291 1,007,377311,730 Turk Hava Yollari Anonim Ortakligi 1,221,483 1,483,787202,211 Turkcell IletisimHizmetleri AS ADR 1,158,524 1,432,345459,043 Turkiye Vakiflar Bankasi T.A.O. 1,148,204 1,111,672
5,374,619 6,689,825
United Kingdom – 1.3%168,136 Commercial International Bank Egypt SAE 993,270 1,286,64133,611 Tatneft OAO 1,350,439 955,634
2,343,709 2,242,275
TOTAL INVESTMENT PORTFOLIO 157,580,220 168,539,051
Currency Spot Contracts – 0.0% (2,422)OTHER ASSETS, LESS LIABILITIES – 2.4% 4,016,583
NET ASSETS – 100.0% 172,553,212
CURRENCY SPOT CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation/
(Depreciation)
Jan. 2, 2015 Canadian Dollar 377 Polish Zloty 1,149 376 1Jan. 5, 2015 Canadian Dollar 32,625 Polish Zloty 99,329 32,552 72Jan. 5, 2015 U.S. Dollar 2,079,350 Canadian Dollar 2,415,581 2,415,575 (2,495)
(2,422)
The currency spot contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.
Portfolio Advisor: Lee Munder Capital Group
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Emerging Markets Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $217,163,220 $133,086,908
Revaluation of Investments at FVTPL 539,044 16,596
Net assets attributable to holders of redeemable units $217,702,264 $133,103,504
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $6,700,659
Revaluation of Investments at FVTPL 522,447
Increase (decrease) in net assets attributable to holders of redeemable units $7,223,106
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
Hong Kong Dollar 36,058,448 20.9 3,605,845 2.1
US Dollar 31,098,155 18.0 3,109,816 1.8
Taiwan Dollar 21,673,371 12.6 2,167,337 1.3
South Korean Won 21,153,857 12.3 2,115,386 1.2
Brazilian Real 13,858,659 8.0 1,385,866 0.8
South African Rand 12,902,519 7.5 1,290,252 0.7
Mexican Peso 8,100,039 4.7 810,004 0.5
Turkish Lira 6,689,825 3.9 668,983 0.4
Thai Baht 6,504,875 3.8 650,488 0.4
Malaysian Ringgit 5,716,590 3.3 571,659 0.3
Indonesian Rupiah 5,321,556 3.1 532,156 0.3
Philippines Peso 2,782,437 1.6 278,244 0.2
Polish Zloty 1,449,510 0.8 144,951 0.1
Total 173,309,841 100.5 17,330,987 10.1
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Scotia Private Emerging Markets Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 72,531,023 33.3 7,253,102 3.3
Korean Won 33,672,324 15.5 3,367,232 1.5
Hong Kong Dollar 24,549,093 11.3 2,454,909 1.1
South African Rand 20,351,183 9.3 2,035,118 0.9
Taiwan Dollar 18,983,797 8.7 1,898,380 0.9
Brazilian Real 9,001,374 4.1 900,137 0.4
Indonesian Rupiah 6,827,964 3.1 682,796 0.3
Thai Baht 5,780,295 2.7 578,030 0.3
Turkish Lira 3,887,397 1.8 388,740 0.2
Malaysian Ringgit 3,780,285 1.7 378,029 0.2
Mexican Peso 3,478,311 1.6 347,831 0.2
European Euro 3,051,888 1.4 305,189 0.1
Philippines Peso 196,484 0.1 19,648 –
Polish Zloty 5 – 1 –
Total 206,091,423 94.6 20,609,142 9.4
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 40,683,189 30.6 4,068,319 3.1
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
South African Rand 12,419,212 9.3 1,241,921 0.9
Taiwan Dollar 8,722,337 6.6 872,234 0.7
Brazilian Real 6,746,165 5.1 674,616 0.5
Mexican Peso 4,046,114 3.0 404,611 0.3
Thai Baht 3,830,941 2.9 383,094 0.3
Indonesian Rupiah 3,683,386 2.8 368,339 0.3
Turkish Lira 3,669,993 2.8 366,999 0.3
Malaysian Ringgit 1,579,896 1.2 157,990 0.1
European Euro 1,440,346 1.1 144,035 0.1
Israel Shekel 1,241,016 0.9 124,102 0.1
Polish Zloty 1,088,839 0.8 108,884 0.1
Czech Koruna 935,219 0.7 93,522 0.1
Total 128,012,788 96.3 12,801,280 9.8
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 December 31,2014, approximately 97.6% (December 31, 2013 – 94.3%, January 1, 2013 – 95.9%) 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 $16,853,905 (December 31, 2013 – $20,468,804, January 1, 2013 – $12,766,662). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
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Scotia Private Emerging Markets Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $2,435,163 $ – $38,835 $ – $242,747
Unrealized loss on currency spot contracts – 2,495 – – – 917
Redeemable units 172,553,212 – 217,702,264 – 133,103,504 –
$172,553,212 $2,437,658 $217,702,264 $38,835 $133,103,504 $243,664
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Canada – 1.7 0.4
United States 7.8 9.3 8.0
Brazil 8.6 10.7 11.0
Cayman Islands – – 0.6
China 7.0 4.1 4.4
Columbia – 0.9 0.7
Czech Republic – – 0.7
Hong Kong 13.9 8.6 7.6
India 3.4 5.4 2.7
Indonesia 3.1 3.1 2.8
Israel – – 0.9
Malaysia 3.3 1.7 1.2
Mexico 4.7 1.6 4.3
Netherlands – – 1.0
Philippines 1.6 0.1 1.0
Poland 0.8 – 0.8
Portugal – 1.4 1.2
Russia 2.3 5.3 7.9
South Africa 7.5 5.6 6.5
South Korea 12.2 16.0 17.3
Taiwan 12.4 8.3 6.0
Thailand 3.8 2.7 2.9
Turkey 3.9 1.8 2.8
United Kingdom 1.3 6.0 4.2
Currency Spot Contract – – 0.0
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Scotia Private Emerging Markets Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $29,364,024 $139,175,027 $ – $168,539,051
Currency Spot Contracts – Assets 73 – – 73
29,364,097 139,175,027 – 168,539,124
Currency Spot Contracts – Liabilities (2,495) – – (2,495)
$29,361,602 $139,175,027 $ – $168,536,629
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $65,704,767 $139,319,523 $ – $205,024,290
Warrants – 202,796 – 202,796
$65,704,767 $139,522,319 $ – $205,227,086
December 31, 2012 Level 1 Level 2 Level 3 Total
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 $ – $127,683,530
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Assets Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 9.66 9.66 9.06 9.06
Series I 9.78 9.79 9.18 9.18
Series M 9.66 9.66 9.05 9.05
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STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $442,245,871 $500,354,156 $330,200,331Unrealized gain on currency spot
contracts – 18,337 –Cash 17,746,811 17,293,021 10,504,412Accrued investment income 127,667 174,515 44,277Receivable for securities sold – 1,880,677 –Subscriptions receivable 68,280 75,786 444,489
460,188,629 519,796,492 341,193,509
LIABILITIESCurrent liabilitiesPayable for securities purchased 403,891 1,094,680 3,451,650Redemptions payable 52,129 32,321 9,574Unrealized loss on currency spot
contracts 418 3,263 15,024
456,438 1,130,264 3,476,248
Net Assets attributable to holders ofredeemable units $459,732,191 $518,666,228 $337,717,261
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $ 49,975,086 $ 41,992,617 $ 34,576,146Series F Units $ 929,451 $ 450,021 $ 356,557Series I Units $408,827,654 $476,223,590 $302,784,558
UNITS OUTSTANDINGPinnacle Series Units 2,517,971 2,433,412 2,580,008Series F Units 46,987 26,072 26,575Series I Units 20,273,395 27,173,176 22,253,165
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 19.85 $ 17.26 $ 13.40Series F Units $ 19.78 $ 17.26 $ 13.41Series I Units $ 20.17 $ 17.53 $ 13.61
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 5,483,063 $ 6,788,521Interest for distribution purposes 126,443 73,512Net realized gain (loss) on non-derivative financial assets 87,156,594 7,900,842Net gain (loss) foreign exchange 607,513 62,839Change in unrealized appreciation (depreciation) of
non-derivative financial assets (28,714,053) 102,419,563Change in unrealized appreciation (depreciation) of currency
spots (15,492) 30,098
Net gain (loss) on investments 64,644,068 117,275,375Securities lending 18,186 7,829Net realized (gain) loss foreign exchange on cash (396,834) (183,653)
Total income (loss) 64,265,420 117,099,551
EXPENSESManagement fees (note 5) 6,483 3,986Administration fees (note 6) 108,984 –Harmonized Sales Tax/Goods and Services Tax 25,201 17,838Audit fees 9,581 12,487Independent Review Committee fees 1,073 1,076Custodian fees 25,444 44,871Filing fees 11,067 16,761Legal fees 4,927 5,524Unitholder reporting costs 12,414 6,807Unitholder administration and service fees 95,538 170,759Overdraft charges 63 –Foreign withholding taxes/tax reclaims 813,193 832,441Transaction costs 153,646 84,509
Total expenses 1,267,614 1,197,059Absorbed expenses (1,938) (1,984)
Net expenses 1,265,676 1,195,075
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 62,999,744 $115,904,476
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES
Pinnacle Series Units $ 6,687,454 $ 9,879,559Series F Units $ 93,880 $ 102,328Series I Units $ 56,218,410 $105,922,589
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*
Pinnacle Series Units $ 2.77 $ 4.01Series F Units $ 2.66 $ 3.87Series I Units $ 2.87 $ 4.14
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 2,416,556 2,461,486Series F Units 35,312 26,417Series I Units 19,557,748 25,591,500
* 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: Harding Loevner LP
The accompanying notes are an integral part of these financial statements.
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Scotia Private Global Equity Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Pinnacle Series Units $ 41,992,617 $ 34,576,146Series F Units 450,021 356,557Series I Units 476,223,590 302,784,558
518,666,228 337,717,261
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 6,687,454 9,879,559Series F Units 93,880 102,328Series I Units 56,218,410 105,922,589
62,999,744 115,904,476
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (386,099) (367,230)Series F Units (2,394) (454)Series I Units (4,283,592) (5,459,887)
(4,672,085) (5,827,571)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 8,620,024 4,460,771Series F Units 596,985 106,107Series I Units 102,716,685 111,118,135
Reinvested distributionsPinnacle Series Units 384,864 366,574Series F Units 2,252 419Series I Units 4,248,780 5,459,887
Payments on redemptionPinnacle Series Units (7,323,774) (6,923,203)Series F Units (211,293) (114,936)Series I Units (226,296,219) (43,601,692)
(117,261,696) 70,872,062
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 7,982,469 7,416,471Series F Units 479,430 93,464Series I Units (67,395,936) 173,439,032
(58,934,037) 180,948,967
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 49,975,086 41,992,617Series F Units 929,451 450,021Series I Units 408,827,654 476,223,590
$ 459,732,191 $518,666,228
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 62,999,744 $ 115,904,476Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (87,156,594) (7,900,842)
Net unrealized (gain) loss foreign exchange on cash (78,923) (3,605)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets 28,714,053 (102,419,563)Change in unrealized (appreciation) depreciation of
currency spot contracts 15,492 (30,098)Purchases of non-derivative financial assets (165,917,179) (113,144,128)Proceeds from sale of non-derivative financial assets 283,504,247 48,988,552Transaction costs 153,646 84,509Accrued investment income 46,848 (130,238)
Net cash provided by (used in) operating activities 122,281,334 (58,650,937)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 111,941,200 116,053,716Amounts paid on redemption of redeemable units (233,811,478) (50,617,084)Distributions to unitholders of redeemable units (36,189) (691)
Net cash provided by (used in) financing activities (121,906,467) 65,435,941Net unrealized (gain) loss foreign exchange on cash 78,923 3,605Net increase (decrease) in cash 374,867 6,785,004Cash (Bank Indebtedness) at beginning of period 17,293,021 10,504,412
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 17,746,811 $ 17,293,021
Interest received(1) 123,862 69,850Dividends received, net of withholding taxes(1) 4,719,298 5,829,505
(1) Classified as operating items.
Portfolio Advisor: Harding Loevner LP
The accompanying notes are an integral part of these financial statements.
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Scotia Private Global Equity Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 96.2%Australia – 0.8%
53,100 Cochlear Limited 3,409,984 3,892,043
France – 5.4%43,840 Air Liquide SA 4,660,622 6,276,299
123,456 Dassault Systemes SA 5,904,686 8,717,47937,500 Essilor International SA 4,165,289 4,843,39125,100 L’Oreal SA 3,340,647 4,889,327
18,071,244 24,726,496
Germany – 2.1%21,010 Linde AG 4,375,748 4,546,83364,400 SAP AG ADR 4,829,086 5,205,361
9,204,834 9,752,194
Hong Kong – 3.0%1,613,300 AIA Group Ltd. 6,984,959 10,310,318
599,200 Sands China Ltd. 4,564,448 3,382,454
11,549,407 13,692,772
India – 1.3%103,400 HDFC Bank Ltd-ADR 3,604,604 6,092,164
Indonesia – 1.0%3,786,700 PT Bank Central Asia Tbk 3,221,293 4,623,796
Japan – 9.1%115,400 ABC-Mart, Inc. 4,569,002 6,489,43036,300 FANUC Corp. 5,433,590 6,952,442
167,207 Kakaku.com Inc. 2,682,249 2,789,75314,543 Keyence Corporation 4,175,187 7,475,530
221,600 M3, Inc. 1,873,680 4,276,46174,700 Monotaro Co., Ltd. 1,983,303 1,739,150
199,418 Stanley Electric Co., Ltd. 5,051,839 5,002,253244,700 Unicharm Corporation 4,045,882 6,833,736
29,814,732 41,558,755
Spain – 1.6%52,800 Grifolis SA 2,354,886 2,438,699
146,300 Industria de Diseno Textil SA 3,201,695 4,863,755
5,556,581 7,302,454
Sweden – 1.7%655,205 Elekta AB, Class B 8,975,613 7,761,185
Switzerland – 7.3%37,470 Lonza Group AG 2,711,485 4,899,545
142,500 Nestle SA 8,905,060 12,063,79821,000 Roche Holdings AG 6,705,365 6,604,07933,800 Sonova Holdings AG 3,764,229 5,748,9578,430 Swatch Group AG, Class B 3,785,010 4,343,161
25,871,149 33,659,540
Turkey – 1.1%1,118,530 Turkiye Garanti Bankasi ADR 5,289,438 5,153,260
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)United Kingdom – 2.8%
71,551 Aggreko PLC 1,986,046 1,934,533235,500 Standard Chartered PLC 5,654,148 4,098,544286,400 WPP Group PLC 4,049,019 6,895,180
11,689,213 12,928,257
United States – 59.0%33,500 3M Co. 3,539,741 6,389,376
102,500 Abbott Laboratories 3,405,245 5,355,170110,125 DaVita, Inc. 7,716,281 9,679,54956,700 American Express Company 3,894,872 6,121,06083,200 Citrix Systems, Inc. 5,367,118 6,160,102
111,200 MasterCard, Inc., Class A 8,396,582 11,121,93690,600 AbbVie Inc. 5,347,456 6,880,427
125,800 ARM Holdings PLC, ADR 4,170,261 6,763,00995,400 BorgWarner, Inc. 3,965,152 6,081,37654,600 Bunge Limited 3,763,543 5,757,807
105,800 Colgate-Palmolive Company 5,341,512 8,493,345189,000 eBay Inc. 7,460,400 12,309,01777,865 Emerson Electric Co. 4,200,228 5,576,69569,100 Exxon Mobil Corporation 6,241,281 7,412,39248,300 F5 Networks, Inc. 4,834,781 7,312,823
144,100 First Republic Bank 5,947,707 8,715,90117,660 Google Inc. Class A 12,524,603 10,875,54362,700 Grifols, S.A. 2,407,782 2,473,21929,325 IMS Health Holdings Inc. 881,374 872,569
112,900 Informatica Corporation 4,287,345 4,996,45164,100 IPG Photonics Corporation 4,503,023 5,573,137
143,200 JPMorgan Chase & Co. 6,739,515 10,402,233116,600 Lazard Ltd. 4,072,049 6,769,755202,480 Microsoft Corporation 6,889,840 10,914,69974,260 Monsanto Company 7,208,450 10,292,296
133,400 NIKE, Inc., Class B 8,230,201 14,879,58920,200 Polo Ralph Lauren Corporation 3,226,805 4,341,34728,920 Praxair, Inc. 2,980,630 4,349,57946,500 Procter & Gamble Company, The 3,297,483 4,916,84864,580 Roper Industries, Inc. 8,988,086 11,715,383
115,100 Schlumberger Limited 9,056,089 11,408,48469,600 SVB Financial Group 5,554,233 9,375,040
140,600 Trimble Navigation Ltd. 3,973,507 4,330,42167,200 Verisk Analytics, Inc. 5,019,725 4,994,96338,700 Waters Corporation 4,416,228 5,060,372
195,400 Wells Fargo & Company 6,925,891 12,431,042
194,775,019 271,102,955
TOTAL INVESTMENT PORTFOLIO 331,033,111 442,245,871
Currency Spot Contracts – (0.0)% (418)OTHER ASSETS, LESS LIABILITIES – 3.8% 17,486,738
NET ASSETS – 100.0% 459,732,191
CURRENCY SPOT CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation/
(Depreciation)
Jan. 2, 2015 U.S. Dollar 62,954 Canadian Dollar 73,077 73,077 (19)Jan. 5, 2015 U.S. Dollar 285,079 Canadian Dollar 331,233 331,232 (399)
(418)
The currency spot contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.
Portfolio Advisor: Harding Loevner LP
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Global Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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 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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $518,574,046 $337,676,061
Revaluation of Investments at FVTPL 92,182 41,200
Net assets attributable to holders of redeemable units $518,666,228 $337,717,261
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $115,853,494
Revaluation of Investments at FVTPL 50,982
Increase (decrease) in net assets attributable to holders of redeemable units $115,904,476
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 301,090,805 65.5 30,109,081 6.5
Japanese Yen 41,558,755 9.0 4,155,876 0.9
European Euro 36,578,734 8.0 3,657,873 0.8
Swiss Franc 21,595,742 4.7 2,159,574 0.5
Hong Kong Dollar 13,692,772 3.0 1,369,277 0.3
British Pound 12,928,257 2.8 1,292,826 0.3
Swedish Krona 7,761,185 1.7 776,119 0.2
Indonesian Rupiah 4,623,796 1.0 462,380 0.1
Australian Dollar 3,892,043 0.8 389,204 0.1
Total 443,722,089 96.5 44,372,210 9.7 FOR
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Scotia Private Global Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 343,462,303 66.2 34,346,230 6.6
Japanese Yen 38,398,299 7.4 3,839,830 0.7
European Euro 35,352,430 6.8 3,535,243 0.7
British Pound 30,069,825 5.8 3,006,982 0.6
Swiss Franc 26,258,079 5.1 2,625,808 0.5
Hong Kong Dollar 11,890,129 2.3 1,189,013 0.2
South African Rand 5,242,408 1.0 524,241 0.1
Australian Dollar 3,944,192 0.8 394,419 0.1
Indonesian Rupiah 3,345,125 0.6 334,513 0.1
Swedish Krona 1,170,553 0.2 117,055 –
Total 499,133,343 96.2 49,913,334 9.6
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 214,998,594 63.7 21,499,859 6.4
Japanese Yen 33,438,929 9.9 3,343,893 1.0
European Euro 21,782,756 6.4 2,178,276 0.6
British Pound 18,301,231 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
Australian Dollar 5,719,233 1.7 571,923 0.2
South African Rand 4,539,906 1.3 453,991 0.1
Swedish Krona 4,094,946 1.2 409,495 0.1
Indonesian Rupiah 3,003,884 0.9 300,388 0.1
Total 333,666,918 98.7 33,366,692 9.8
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 December 31,2014, approximately 96.2% (December 31, 2013 – 96.5%, January 1, 2013 – 97.8%) 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 $44,224,587 (December 31, 2013 – $50,026,197, January 1, 2013 – $33,015,913). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
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Scotia Private Global Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On DemandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $456,020 $ – $1,127,001 $ – $3,461,224
Unrealized loss on currency spot contracts – 418 – 3,263 – 15,024
Redeemable units 459,732,191 – 518,666,228 – 337,717,261 –
$459,732,191 $456,438 $518,666,228 $1,130,264 $337,717,261 $3,476,248
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Australia 0.8 0.8 1.7
France 5.4 5.0 4.4
Germany 2.1 – –
Hong Kong 3.0 2.3 3.4
India 1.3 1.5 2.2
Indonesia 1.0 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 1.6 1.3 1.5
Sweden 1.7 0.2 1.2
Switzerland 7.3 7.9 8.0
Turkey 1.1 0.7 1.3
United Kingdom 2.8 5.8 5.4
United States 59.0 58.8 52.7
Currency Spot Contracts (0.0) 0.0 –
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $299,617,538 $142,628,333 $ – $442,245,871
Currency Spot Contracts – Liabilities (418) (418)
$299,617,120 $142,628,333 $ – $442,245,453
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Scotia Private Global Equity Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013 Level 1 Level 2 Level 3 Total
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
Currency Spot Contracts – Liabilities (3,263) – – (3,263)
$343,394,241 $156,974,989 $ – $500,369,230
January 1, 2013 Level 1 Level 2 Level 3 Total
Equities $210,538,815 $119,661,516 $ – $330,200,331
Currency Spot Contracts – Liabilities (15,024) – – (15,024)
$210,523,791 $119,661,516 $ – $330,185,307
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Assets Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pinnacle Series 19.85 19.85 17.26 17.26
Series F 19.78 19.78 17.26 17.26
Series I 20.17 20.17 17.53 17.53
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Scotia Private Global Real Estate Pool
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $267,004,346 $308,129,693 $217,952,621Unrealized gain on currency spot
contracts 42 857 1,696Cash 5,181,558 9,461,775 3,952,943Accrued investment income 999,957 1,149,915 724,217Receivable for securities sold 140,005 93,365 1,195,241Subscriptions receivable 212,684 174,099 109,397
273,538,592 319,009,704 223,936,115
LIABILITIESCurrent liabilitiesPayable for securities purchased 129,714 4,572,929 660,454Redemptions payable 92,291 89,510 31,182Unrealized loss on currency spot
contracts – 6,794 5,629
222,005 4,669,233 697,265
Net Assets attributable to holders ofredeemable units $273,316,587 $314,340,471 $223,238,850
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Pinnacle Series Units $143,567,068 $112,443,887 $101,993,993Series F Units $ 1,676,634 $ 438,545 $ 188,962Series I Units $128,072,885 $201,458,039 $121,055,895
UNITS OUTSTANDINGPinnacle Series Units 8,307,585 7,800,285 7,691,069Series F Units 100,026 31,254 14,601Series I Units 7,146,893 13,478,887 8,805,446
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Pinnacle Series Units $ 17.28 $ 14.42 $ 13.26Series F Units $ 16.76 $ 14.03 $ 12.94Series I Units $ 17.92 $ 14.95 $ 13.75
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $10,114,858 $ 7,898,470Interest for distribution purposes 134,693 246,472Capital gains distributions received 53,393 26,880Net realized gain (loss) on non-derivative financial assets 28,174,868 10,500,934Net gain (loss) foreign exchange 99,337 (44,660)Change in unrealized appreciation (depreciation) of
non-derivative financial assets 19,231,632 9,918,734Change in unrealized appreciation (depreciation) of
currency spots 5,979 (2,004)
Net gain (loss) on investments 57,814,760 28,544,826Securities lending 16,321 19,971Net realized (gain) loss foreign exchange on cash (175,459) (17,416)Other income – 82
Total income (loss) 57,655,622 28,547,463
EXPENSESManagement fees (note 5) 11,907 3,389Administration fees (note 6) 66,834 –Harmonized Sales Tax/Goods and Services Tax 19,318 13,004Audit fees 5,927 7,434Independent Review Committee fees 657 1,181Custodian fees 34,145 22,479Filing fees 11,080 16,780Legal fees 3,060 4,343Unitholder reporting costs 11,340 6,421Unitholder administration and service fees 67,626 113,599Overdraft charges 12 –Foreign withholding taxes/tax reclaims 1,124,587 884,761Transaction costs 231,764 257,798
Total expenses 1,588,257 1,331,189Absorbed expenses (2,018) (2,209)
Net expenses 1,586,239 1,328,980
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $56,069,383 $27,218,483
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES
Pinnacle Series Units $27,323,475 $11,313,836Series F Units $ 226,801 $ 22,969Series I Units $28,519,107 $15,881,678
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT*
Pinnacle Series Units $ 3.46 $ 1.54Series F Units $ 3.01 $ 0.94Series I Units $ 3.89 $ 1.47
WEIGHTED AVERAGE NUMBER OF UNITSPinnacle Series Units 7,887,850 7,340,811Series F Units 75,240 24,483Series I Units 7,322,475 10,770,515
* 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: CBRE Clarion Securities
The accompanying notes are an integral part of these financial statements.
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Scotia Private Global Real Estate Pool (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
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
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Pinnacle Series Units 27,323,475 11,313,836Series F Units 226,801 22,969Series I Units 28,519,107 15,881,678
56,069,383 27,218,483
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Pinnacle Series Units (4,835,976) (2,269,667)Series F Units (45,202) (5,547)Series I Units (4,431,381) (4,195,802)
(9,312,559) (6,471,016)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Pinnacle Series Units 21,953,443 23,258,795Series F Units 1,209,939 267,096Series I Units 31,182,773 72,113,006
Reinvested distributionsPinnacle Series Units 4,817,724 2,264,470Series F Units 41,365 4,450Series I Units 4,431,381 4,195,802
Payments on redemptionPinnacle Series Units (18,135,485) (24,117,540)Series F Units (194,814) (39,385)Series I Units (133,087,034) (7,592,540)
(87,780,708) 70,354,154
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Pinnacle Series Units 31,123,181 10,449,894Series F Units 1,238,089 249,583Series I Units (73,385,154) 80,402,144
(41,023,884) 91,101,621
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Pinnacle Series Units 143,567,068 112,443,887Series F Units 1,676,634 438,545Series I Units 128,072,885 201,458,039
$ 273,316,587 $314,340,471
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders
of redeemable units $ 56,069,383 $ 27,218,483Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (28,174,868) (10,500,934)
Net unrealized (gain) loss foreign exchange on cash (163,308) (18,446)Change in unrealized (appreciation) depreciation on
sale of non-derivative financial assets (19,231,632) (9,918,734)Change in unrealized (appreciation) depreciation of
currency spot contracts (5,979) 2,004Purchases of non-derivative financial assets (107,012,677) (151,419,367)Proceeds from sale of non-derivative financial assets 190,822,904 86,418,517Transaction costs 231,764 257,798Accrued investment income 149,958 (425,698)
Net cash provided by (used in) operating activities 92,685,545 (58,386,377)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 54,307,569 95,574,195Amounts paid on redemption of redeemable units (151,414,551) (31,691,137)Distributions to unitholders of redeemable units (22,088) (6,294)
Net cash provided by (used in) financing activities (97,129,070) 63,876,763Net unrealized (gain) loss foreign exchange on cash 163,308 18,446Net increase (decrease) in cash (4,443,525) 5,490,386Cash (Bank Indebtedness) at beginning of period 9,461,775 3,952,943
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 5,181,558 $ 9,461,775
Interest received(1) 137,997 241,456Dividends received, net of withholding taxes(1) 9,136,925 6,593,027
(1) Classified as operating items.
Portfolio Advisor: CBRE Clarion Securities
The accompanying notes are an integral part of these financial statements.
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Scotia Private Global Real Estate Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES – 97.7%Australia – 5.6%
824,000 Federation Centres NPV on Stapled Security 1,850,647 2,227,181606,630 Goodman Group 2,520,965 3,247,775374,468 Investa Office Fund 1,086,585 1,284,516
1,980,803 Mirvac Group 3,117,608 3,322,262398,127 Scentre Group 2,035,159 1,314,756703,236 Stockland 2,716,834 2,728,254128,449 Westfield Corporation 892,989 1,090,648
14,220,787 15,215,392
Canadian Equities – 0.7%21,300 Boardwalk Real Estate Investment Trust 1,184,989 1,310,80217,030 Canadian Real Estate Investment Trust 631,042 779,804
1,816,031 2,090,606
France – 2.0%17,064 ICADE 1,550,195 1,585,37158,955 Klepierre 2,396,668 2,946,36236,610 Mercialys 854,914 947,498
4,801,777 5,479,231
Germany – 1.8%29,700 Deutsche Wohnen AG-Br 822,545 818,77645,695 LEG Immobilien AG 2,994,208 3,977,510
3,816,753 4,796,286
Hong Kong – 7.1%396,668 China Overseas Land & Investment Limited 1,319,912 1,358,659283,600 Hang Lung Properties Limited 1,017,583 917,297403,800 Hongkong Land Holdings Limited 2,751,663 3,154,061383,600 Link Real Estate Investment Trust, The 2,127,229 2,779,126
1,411,000 New World Development Company Limited 1,894,525 1,873,144403,100 Sun Hung Kai Properties Limited 5,883,505 7,074,39518,841 Sun Hung Kai Properties Limited Warrants
Apr. 22, 2016 55,269629,900 Swire Properties Limited 1,948,871 2,157,523
16,943,288 19,369,474
Japan – 13.1%856 GLP J-REIT 954,873 1,100,806793 Japan Hotel REIT Investment Corporation 508,317 589,225448 Japan Real Estate Investment Corporation 2,180,549 2,502,098
1,364 Japan Retail Fund Investment Corporation 2,645,531 3,338,120232 Kenedix Realty Investment Corporation 901,403 1,511,441
319,223 Mitsubishi Estate Company Ltd. 7,369,603 7,840,510308,600 Mitsui Fudosan Co., Ltd. 7,633,188 9,632,100
572 Nippon Prologis REIT Inc. 1,143,219 1,439,08579,000 NTT Urban Development Corporation 989,978 919,676
729 Orix JREIT Inc. 1,004,999 1,184,28193,400 Sumitomo Realty & Development Co., Ltd. 3,625,885 3,692,37949,000 Tokyo Tatemono Co. Ltd. 303,210 414,124
940 United Urban Investment Corporation 1,235,249 1,713,468
30,496,004 35,877,313
Luxembourg – 0.8%82,238 GAGFAH SA 1,489,047 2,134,933
Netherlands – 2.5%13,269 Corio NV 618,764 751,34420,122 Eurocommercial Properties NV 809,627 990,373
221,740 Nieuwe Steen Investments NV 1,257,398 1,145,71213,738 Unibail-Rodamco SE 3,263,539 4,074,003
5,949,328 6,961,432
Singapore – 3.4%1,354,700 Capitacommercial Trust 1,343,889 2,080,8731,001,600 Capitaland Limited 2,841,811 2,887,775
Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)Singapore (cont’d)
1,302,200 Global Logistic Properties Limited 2,686,411 2,826,064858,800 Suntec Real Estate Investment Trust 1,243,767 1,473,084
8,115,878 9,267,796
Sweden – 0.4%72,023 Hufvudstaden AB, Class A 967,075 1,085,068
Switzerland – 0.5%12,996 PSP Swiss Property AG 1,188,482 1,298,344
United Kingdom – 7.1%314,932 British Land Company PLC 3,469,240 4,390,41448,300 Derwent London PLC 1,385,229 2,617,972
207,580 Great Portland Estates PLC 1,514,616 2,753,073263,667 Hammerson PLC 2,093,007 2,859,822261,525 Land Securities Group PLC 3,742,477 5,430,648189,823 Safestore Holdings PLC 523,448 796,25361,147 Unite Group PLC 468,762 514,149
13,196,779 19,362,331
United States – 52.7%248,700 American Realty Capital Properties Inc. 3,280,153 2,611,97133,778 AvalonBay Communities, Inc. 4,637,005 6,406,13986,000 BioMed Realty Trust Inc. 1,854,528 2,149,75019,680 Boston Properties, Inc. 1,894,923 2,939,09688,800 Brandywine Realty Trust 1,325,863 1,646,77376,900 Brixmor Property Group Inc. 1,818,895 2,218,11557,260 Cousins Properties, Inc. 785,673 758,85941,800 DCT Industrial Trust Inc. 1,411,050 1,730,793
191,500 Developers Diversified Realty Corporation 2,824,187 4,080,23793,900 Douglas Emmett, Inc. 2,292,345 3,097,490
150,400 Duke Realty Corporation 2,429,427 3,525,682107,715 Equity Residential Real Estate Investment Trust 6,139,277 8,983,33420,295 Essex Property Trust, Inc. 3,426,586 4,866,725
182,600 General Growth Properties, Inc. 3,447,100 5,960,93598,288 Health Care Real Estate Investment Trust, Inc. 5,847,887 8,631,14061,400 Healthcare Realty Trust Inc. 1,490,611 1,946,67354,400 Healthcare Trust of America Inc. 1,328,211 1,703,27526,620 Highwoods Properties, Inc. 920,337 1,367,91670,400 Hilton Worldwide Holdings Inc. 1,752,762 2,131,526
272,397 Host Hotels & Resorts Inc. 4,567,600 7,518,81555,200 Kilroy Realty Corporation 2,674,773 4,426,82692,654 Kimco Realty Corporation 1,760,121 2,703,170
103,800 Lexington Realty Trust 1,158,774 1,322,64619,500 Liberty Property Trust 690,343 851,55540,763 Macerich Company, The 2,120,809 3,944,082
114,700 Paramount Group Inc. 2,325,816 2,481,15128,100 Pebblebrook Hotel Trust 747,416 1,487,99233,300 Post Properties, Inc. 1,555,179 2,271,140
155,706 ProLogis 5,697,854 7,775,36215,284 Public Storage Real Estate Investment Trust 1,888,040 3,280,28752,500 Ramco-Gershenson Properties Trust 878,988 1,141,75548,665 Simon Property Group, Inc. 6,252,690 10,296,33942,910 SL Green Realty Corp. 3,153,142 5,929,069
198,500 Spirit Realy Capital, Inc. 2,339,199 2,738,964129,000 Strategic Hotels & Resorts Inc. 1,469,845 1,980,58525,000 Sun Communities, Inc. 1,402,772 1,755,39672,600 Sunstone Hotel Investors, Inc. 880,048 1,391,00225,587 Tanger Factory Outlet Centers, Inc. 841,568 1,097,47719,500 Taubman Centers Inc 1,321,012 1,730,039
133,300 UDR Inc 3,493,796 4,767,676
Portfolio Advisor: CBRE Clarion Securities
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Global Real Estate Pool (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofShares Issuer
AverageCost ($)
CarryingValue ($)
EQUITIES (cont’d)United States (cont’d)
46,980 Vornado Realty Trust Real Estate InvestmentTrust 4,129,072 6,418,383
100,255,677 144,066,140
TOTAL INVESTMENT PORTFOLIO 203,256,906 267,004,346
Currency Spot Contracts – 0.0% 42OTHER ASSETS, LESS LIABILITIES – 2.3% 6,312,199
NET ASSETS – 100.0% 273,316,587
CURRENCY SPOT CONTRACTS
Settlement Date Currency To Be Received Contractual Amount Currency To Be Delivered Contractual AmountCanadian Value as at
December 31, 2014 ($)
Canadian ($)Appreciation/
(Depreciation)
Jan. 2, 2015 Canadian Dollar 10,333 European Euro 7,330 10,291 42
The currency spot contracts outstanding at December 31, 2014 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.
Portfolio Advisor: CBRE Clarion Securities
The accompanying notes are an integral part of these financial statements. -For equities, all common shares unless otherwise noted.
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Scotia Private Global Real Estate Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)The following reconciliation between IFRS and Canadian GAAP, as required by IFRS 1, and the related explanations of anysignificant adjustments are as follows:
(i) Reconciliation of nets assets as previously reported under Canadian GAAP as at:
Equity December 31, 2013 January 1, 2013
Net assets as reported under Canadian GAAP $314,302,660 $223,175,829
Revaluation of Investments at FVTPL 37,811 63,021
Net assets attributable to holders of redeemable units $314,340,471 $223,238,850
(ii) Reconciliation of comprehensive income as previously reported under Canadian GAAP as at:
Comprehensive Income December 31, 2013
Comprehensive income as reported under Canadian GAAP $27,243,693
Revaluation of Investments at FVTPL (25,210)
Increase (decrease) in net assets attributable to holders of redeemable units $27,218,483
The difference in the amounts reported under IFRS is mainly due to revaluation of investments at FVTPL upon transition to IFRS.
3. Risks Associated with Financial Instruments (note 4)i) Interest Rate Risk
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant exposure to interest rate risk as itsassets and liabilities were substantially non-interest bearing or were invested in short term fixed income instruments with term tomaturity of less than 90 days, for the applicable periods.
ii) Currency risk
The tables below indicates the currencies to which the Fund had significant exposure, net of the impact of foreign currency forwardcontracts and foreign currency spot contracts, if any, based on the monetary and non-monetary assets of the Fund. The tables alsoillustrates the potential impact on the net assets attributable to holders of redeemable units if the Canadian dollar had strengthenedor weakened by 10% in relation to each of the other currencies, with all other variables held constant.
December 31, 2014
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweakened by 10%
Percentage ofNet Assets (%)
US Dollar 147,372,643 53.9 14,737,264 5.4
Japanese Yen 35,877,313 13.1 3,587,731 1.3
British Pound 19,362,330 7.1 1,936,233 0.7
European Euro 19,361,590 7.1 1,936,159 0.7
Hong Kong Dollar 16,278,767 6.0 1,627,877 0.6
Australian Dollar 15,215,393 5.6 1,521,539 0.6
Singapore Dollar 9,267,794 3.4 926,779 0.3
Swiss Franc 1,298,344 0.5 129,834 0.0
Swedish Krona 1,085,068 0.4 108,507 0.0
Total 265,119,242 97.1 26,511,923 9.6
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Scotia Private Global Real Estate Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 151,987,605 48.4 15,198,761 4.8
Japanese Yen 54,895,421 17.5 5,489,542 1.7
European Euro 25,583,171 8.1 2,558,317 0.8
Hong Kong Dollar 21,406,115 6.8 2,140,611 0.7
Australian Dollar 19,493,575 6.2 1,949,358 0.6
British Pound 19,352,930 6.2 1,935,293 0.6
Singapore Dollar 9,428,689 3.0 942,869 0.3
Swedish Krona 2,331,052 0.7 233,105 0.1
Swiss Franc 1,706,176 0.5 170,618 0.1
Total 306,184,734 97.4 30,618,474 9.7
January 1, 2013
CurrencyNet CurrencyExposure ($)
Percentage ofNet Assets (%)
Impact if Canadiandollar had
strengthened orweaked by 10%
Percentage ofNet Assets (%)
U.S. Dollar 99,565,749 44.6 9,956,575 4.5
Japanese Yen 27,309,826 12.2 2,730,983 1.2
Hong Kong Dollar 24,104,285 10.8 2,410,429 1.1
Australian Dollar 21,496,734 9.6 2,149,673 1.0
British Pound 12,829,790 5.7 1,282,979 0.6
European Euro 12,401,013 5.6 1,240,101 0.6
Singapore Dollar 10,045,710 4.5 1,004,571 0.4
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 –
Total 211,441,273 94.7 21,144,128 9.6
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 December 31,2014, approximately 97.7% (December 31, 2013 – 98.0%, January 1, 2013 – 97.6%) 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 $26,700,435 (December 31, 2013 – $30,809,188, January 1, 2013 – $21,788,960). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.
iv) Credit risk
The Fund had no significant exposure to debt instruments or preferred securities as at December 31, 2014, December 31, 2013 andJanuary 1, 2013. In addition, all investment transactions are executed by brokers with an approved credit rating. As such, the risk ofdefault on transactions with counterparties and brokers is considered minimal. In instances where the credit rating were to fallbelow the approved rating, the Manager would take appropriate action.
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Scotia Private Global Real Estate Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
v) Liquidity risk
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $222,005 $ – $4,662,439 $ – $691,636
Unrealized loss on currency spot contracts – – – 6,794 – 5,629
Redeemable units 273,316,587 – 314,340,471 – 223,238,850 –
$273,316,587 $222,005 $314,340,471 $4,669,233 $223,238,850 $697,265
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.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, 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 (%)
December 31, 2014 December 31, 2013 January 1, 2013
Australia 5.6 6.1 9.7
Brazil – – 0.2
Canada 0.7 1.9 2.8
France 2.0 2.7 4.5
Germany 1.8 0.7 0.8
Hong Kong 7.1 7.6 12.1
Japan 13.1 17.5 12.0
Luxembourg 0.8 – –
Netherlands 2.5 4.8 0.3
Singapore 3.4 2.9 4.5
Sweden 0.4 0.7 0.8
Switzerland 0.5 0.5 0.7
United Kingdom 7.1 6.2 5.7
United States 52.7 46.4 43.5
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Equities $146,156,746 $120,792,331 $ – $266,949,077
Warrants – 55,269 – 55,269
Currency Spot Contracts – Assets 42 – – 42
$146,156,788 $120,847,600 $ – $267,004,388
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Scotia Private Global Real Estate Pool (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013 Level 1 Level 2 Level 3 Total
Equities $152,086,715 $156,042,978 $ – $308,129,693
Currency Spot Contracts – Assets 857 – – 857
152,087,572 156,042,978 – 308,130,550
Currency Spot Contracts – Liabilities (6,794) – – (6,794)
$152,080,778 $156,042,978 $ – $308,123,756
January 1, 2013 Level 1 Level 2 Level 3 Total
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
Currency Spot Contracts – Liabilities (5,629) – – (5,629)
$103,415,964 $114,532,724 $ – $217,948,688
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The Fund did not hold any interests in Underlying Funds as at December 31, 2014, December 31, 2013 and January 1, 2013.
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pricing NAVper unit ($)
IFRS net assetsper unit ($)
Pinnacle Series 17.28 17.28 14.42 14.42
Series F 16.76 16.76 14.03 14.03
Series I 17.92 17.92 14.95 14.95
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Pinnacle Income Portfolio
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $12,902,775 $13,272,894 $14,396,439Cash 119,792 250,269 –Accrued investment income 124 57 140Receivable for securities sold – 9,000 240,996Subscriptions receivable 1,016 527 404
13,023,707 13,532,747 14,637,979
LIABILITIESCurrent liabilitiesBank indebtedness – – 65,051Redemptions payable – 938 –
– 938 65,051
Net Assets attributable to holders ofredeemable units $13,023,707 $13,531,809 $14,572,928
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER SERIES
Series A Units $13,023,707 $13,531,809 $14,572,928
UNITS OUTSTANDINGSeries A Units 1,081,558 1,186,415 1,313,218
NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITSPER UNIT
Series A Units $ 12.04 $ 11.41 $ 11.10
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 109,213 $ 86,330Interest for distribution purposes 309,560 362,734Capital gains distributions received 32,461 355,592Net realized gain (loss) on non-derivative financial assets 274,188 340,341Change in unrealized appreciation (depreciation) of non-
derivative financial assets 436,834 (218,185)
Net gain (loss) on investments 1,162,256 926,812
Total income (loss) 1,162,256 926,812
EXPENSESManagement fees (note 5) 244,324 264,576Administration fees (note 6) 7,009 –Harmonized Sales Tax/Goods and Services Tax 26,283 27,732Audit fees 317 74Independent Review Committee fees 35 864Custodian fees 1,272 423Filing fees 9,781 14,678Legal fees 166 38Unitholder reporting costs 4,432 4,226Unitholder administration and service fees 3,820 5,708Overdraft charges 209 276Foreign withholding taxes/tax reclaims 7,710 6,425
Total expenses 305,358 325,020
Net expenses 305,358 325,020
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 856,898 $ 601,792
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES
Series A Units $ 856,898 $ 601,792
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT*
Series A Units $ 0.77 $ 0.48
WEIGHTED AVERAGE NUMBER OF UNITSSeries A Units 1,111,486 1,263,862
* 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.
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Series A Units $13,531,809 $14,572,928
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Series A Units 856,898 601,792
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLE UNITSFrom net investment income
Series A Units (113,437) (122,484)From realized gain
Series A Units (16,784) (87,157)
(130,221) (209,641)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Series A Units 1,468,566 1,161,382Reinvested distributions
Series A Units 124,285 201,211Payments on redemption
Series A Units (2,827,630) (2,795,863)
(1,234,779) (1,433,270)
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Series A Units (508,102) (1,041,119)
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Series A Units $13,023,707 $13,531,809
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 856,898 $ 601,792Adjustments For:
Net realized (gain) loss on sale of non-derivative financialassets (274,188) (340,341)
Change in unrealized (appreciation) depreciation on saleof non-derivative financial assets (436,834) 218,185
Purchases of non-derivative financial assets (596,013) (1,180,403)Proceeds from sale of non-derivative financial assets 1,686,154 2,658,100Accrued investment income (67) 83
Net cash provided by (used in) operating activities 1,235,950 1,957,416
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 1,468,077 1,161,259Amounts paid on redemption of redeemable units (2,828,568) (2,794,924)Distributions to unitholders of redeemable units (5,936) (8,431)
Net cash provided by (used in) financing activities (1,366,427) (1,642,096)Net increase (decrease) in cash (130,477) 315,320Cash (Bank Indebtedness) at beginning of period 250,269 (65,051)
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 119,792 $ 250,269
Interest received(1) 309,493 362,817Dividends received, net of withholding taxes(1) 101,503 79,905
(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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Pinnacle Income Portfolio (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofUnits Issuer
AverageCost ($)
CarryingValue ($)
FIXED INCOME FUNDS – 68.9%199,210 Scotia Private American Core-Plus Bond
Pool Series I 1,673,678 1,907,398130,674 Scotia Private High Yield Income Pool Series I 1,160,988 1,235,624534,851 Scotia Private Income Pool Series I 5,890,834 5,832,176
8,725,500 8,975,198
CANADIAN EQUITY FUNDS – 11.0%68,432 Scotia Private Canadian Growth Pool Series I 829,598 1,048,19717,636 Scotia Private Canadian Value Pool Series I 314,361 375,608
1,143,959 1,423,805
FOREIGN EQUITY FUNDS – 19.2%13,110 Scotia Private Emerging Markets Pool Series I 127,537 128,26619,339 Scotia Private Global Equity Pool Series I 234,975 389,98360,198 Scotia Private Global Real Estate Pool Series I 648,808 1,078,59917,353 Scotia Private International Small to Mid Cap
Value Pool Series I 258,460 393,65332,734 Scotia Private U.S. Value Pool Series I 317,509 513,271
1,587,289 2,503,772
TOTAL INVESTMENT PORTFOLIO 11,456,748 12,902,775
OTHER ASSETS, LESS LIABILITIES – 0.9% 120,932
NET ASSETS – 100.0% 13,023,707
Portfolio Advisor: 1832 Asset Management L.P.
The accompanying notes are an integral part of these financial statements.
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Pinnacle Income Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)There were no adjustments related to the measurement of the assets and liabilities at fair value on transition to IFRS and therefore,the Fund’s transition adjustments are limited to those disclosed in note 12.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
The Fund invests in underlying funds, which are exposed to interest rate risk. As at December 31, 2014, had the prevailing interestrates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and all other variables held constant, net assetsattributable to holders of redeemable units would have decreased or increased, respectively, by $125,255 or approximately 1.0%(December 31, 2013 – $112,534 or approximately 0.8%, January 1, 2013 – $170,594 or approximately 1.2%). In practice, actual resultsmay 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.
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 December 31,2014, approximately 30.2% (December 31, 2013 – 29.9%, January 1, 2013 – 30.5%) of the Fund’s net assets attributable to holders ofredeemable units were invested in Underlying Funds which were exposed to other price risk. If prices of these investments haddecreased or increased by 10%, with all other variables held constant, net assets attributable to holders of redeemable units of theFund would have decreased or increased, respectively, by approximately $392,758 (December 31, 2013 – $403,863, January 1, 2013 –$444,467). In practice, actual results will differ 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
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $ – $ – $938 $ – $65,051
Redeemable units 13,023,707 – 13,531,809 – 14,572,928 –
$13,023,707 $ – $13,531,809 $938 $14,572,928 $65,051
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. T
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Pinnacle Income Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, geographical location, asset type,industry sector or counterparty type. The table(s) below is a summary of the Fund’s concentration risk.
Percentage of Net Assets (%)
December 31, 2014 December 31, 2013 January 1, 2013
Fixed Income Funds 68.9 68.2 68.3
Canadian Equity Funds 11.0 11.0 11.1
Foreign Equity Funds 19.2 18.9 19.4
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Mutual Funds $12,902,775 $ – $ – $12,902,775
December 31, 2013 Level 1 Level 2 Level 3 Total
Mutual Funds $13,272,894 $ – $ – $13,272,894
January 1, 2013 Level 1 Level 2 Level 3 Total
Mutual Funds $14,396,439 $ – $ – $14,396,439
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The following tables provide information about the Fund’s interest in Underlying Funds as at December 31, 2014, December 31, 2013and January 1, 2013.
December 31, 2014
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $172,517,483 $ 128,266 1.0
Scotia Private Income Pool Series I 334,449,630 5,832,176 44.8
Scotia Private High Yield Income Pool Series I 910,438,382 1,235,624 9.5
Scotia Private American Core-Plus Bond Pool Series I 628,345,246 1,907,398 14.6
Scotia Private Canadian Value Pool Series I 129,640,369 375,608 2.9
Scotia Private Canadian Growth Pool Series I 331,181,286 1,048,197 8.0
Scotia Private U.S. Value Pool Series I 289,278,933 513,271 3.9
Scotia Private International Small to Mid Cap ValuePool Series I 37,451,491 393,653 3.0
Scotia Private Global Equity Pool Series I 459,739,970 389,983 3.0
Scotia Private Global Real Estate Pool Series I 273,276,031 1,078,599 8.4
$12,902,775 99.1
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Pinnacle Income Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $217,679,760 $ 131,757 1.0
Scotia Private Income Pool Series I 290,512,432 5,937,841 43.9
Scotia Private High Yield Income Pool Series I 759,668,764 1,318,909 9.7
Scotia Private American Core-Plus Bond Pool Series I 415,613,441 1,977,519 14.6
Scotia Private Canadian Value Pool Series I 114,267,931 406,517 3.0
Scotia Private Canadian Growth Pool Series I 258,721,799 1,082,072 8.0
Scotia Private U.S. Value Pool Series I 438,348,429 538,302 4.0
Scotia Private International Small to Mid Cap ValuePool Series I 33,697,742 403,782 3.0
Scotia Private Global Equity Pool Series I 518,669,821 403,871 3.0
Scotia Private Global Real Estate Pool Series I 314,362,180 1,072,324 7.9
$13,272,894 98.1
January 1, 2013
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $133,105,189 $ 164,425 1.1
Scotia Private Income Pool Series I 299,079,913 6,399,841 43.9
Scotia Private High Yield Income Pool Series I 572,230,047 1,420,684 9.7
Scotia Private American Core-Plus Bond Pool Series I 273,056,501 2,131,246 14.6
Scotia Private Canadian Value Pool Series I 95,733,037 467,711 3.2
Scotia Private Canadian Growth Pool Series I 170,764,724 1,146,655 7.9
Scotia Private U.S. Value Pool Series I 260,145,009 592,528 4.1
Scotia Private International Small to Mid Cap ValuePool Series I 27,531,072 469,558 3.2
Scotia Private Global Equity Pool Series I 337,699,478 459,128 3.2
Scotia Private Global Real Estate Pool Series I 223,229,954 1,144,663 7.9
$14,396,439 98.8
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Series A 12.04 12.04 11.41 11.41T
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Pinnacle Balanced Portfolio
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $82,854,868 $76,380,393 $61,565,200Cash 27,518 385,621 404,935Accrued investment income 190 268 283Receivable for securities sold 40,000 45,600 –Subscriptions receivable 75,967 12,157 11,270
82,998,543 76,824,039 61,981,688
LIABILITIESCurrent liabilitiesPayable for securities purchased – 86,000 –Redemptions payable 13,509 2,018 117,908
13,509 88,018 117,908
Net Assets attributable to holders ofredeemable units $82,985,034 $76,736,021 $61,863,780
NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS PER SERIES
Series A Units $82,985,034 $76,736,021 $61,863,780
UNITS OUTSTANDINGSeries A Units 6,273,642 6,226,172 5,597,961
NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS PER UNIT
Series A Units $ 13.23 $ 12.32 $ 11.05
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $1,240,588 $ 923,434Interest for distribution purposes 1,175,298 1,094,169Capital gains distributions received 1,106,759 1,515,783Net realized gain (loss) on non-derivative financial assets 1,463,887 951,079Change in unrealized appreciation (depreciation) of non-
derivative financial assets 3,060,985 4,993,632
Net gain (loss) on investments 8,047,517 9,478,097Other income 189 –
Total income (loss) 8,047,706 9,478,097
EXPENSESManagement fees (note 5) 1,711,263 1,396,603Administration fees (note 6) 23,867 –Harmonized Sales Tax/Goods and Services Tax 163,035 135,108Audit fees 1,608 1,635Independent Review Committee fees 216 973Custodian fees (178) 317Filing fees 1,853 15,280Legal fees 925 7,607Unitholder reporting costs 5,821 5,265Unitholder administration and service fees 20,814 23,668Overdraft charges 96 167Foreign withholding taxes/tax reclaims 74,462 53,023
Total expenses 2,003,782 1,639,646Absorbed expenses (300) –
Net expenses 2,003,482 1,639,646
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $6,044,224 $7,838,451
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES
Series A Units $6,044,224 $7,838,451
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT*
Series A Units $ 0.96 $ 1.37
WEIGHTED AVERAGE NUMBER OF UNITSSeries A Units 6,287,191 5,717,492
* 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: 1832 Asset Management L.P.
The accompanying notes are an integral part of these financial statements.
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Pinnacle Balanced Portfolio (Continued)
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – BEGINNING OF PERIOD
Series A Units $ 76,736,021 $ 61,863,780
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Series A Units 6,044,224 7,838,451
DISTRIBUTIONS TO UNITHOLDERS OF REDEEMABLEUNITSFrom net investment income
Series A Units (382,900) (358,501)
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Series A Units 11,975,909 17,760,769
Reinvested distributionsSeries A Units 377,619 354,371
Payments on redemptionSeries A Units (11,765,839) (10,722,849)
587,689 7,392,291
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Series A Units 6,249,013 14,872,241
NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS – END OF PERIOD
Series A Units $ 82,985,034 $ 76,736,021
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 6,044,224 $ 7,838,451Adjustments For:
Net realized (gain) loss on sale of non-derivativefinancial assets (1,463,887) (951,079)
Change in unrealized (appreciation) depreciation onsale of non-derivative financial assets (3,060,985) (4,993,632)
Purchases of non-derivative financial assets (9,202,416) (6,017,923)Proceeds from sale of non-derivative financial assets 7,172,413 5,421,464Accrued investment income 78 15
Net cash provided by (used in) operating activities (510,573) 1,297,296
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 11,912,099 9,526,260Amounts paid on redemption of redeemable units (11,754,348) (10,838,739)Distributions to unitholders of redeemable units (5,281) (4,130)
Net cash provided by (used in) financing activities 152,470 (1,316,610)Net increase (decrease) in cash (358,103) (19,314)Cash (Bank Indebtedness) at beginning of period 385,621 404,935
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 27,518 $ 385,621
Interest received(1) 1,175,376 1,094,184Dividends received, net of withholding taxes(1) 1,166,126 870,411
(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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Pinnacle Balanced Portfolio (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofUnits Issuer
AverageCost ($)
CarryingValue ($)
FIXED INCOME FUNDS – 39.2%854,168 Scotia Private High Yield Income Pool Series I 7,973,149 8,076,844
2,240,350 Scotia Private Income Pool Series I 24,650,717 24,429,443
32,623,866 32,506,287
CANADIAN EQUITY FUNDS – 30.0%577,641 Scotia Private Canadian Growth Pool Series I 7,312,635 8,847,954237,720 Scotia Private Canadian Mid Cap Pool Series I 3,448,304 4,796,31885,024 Scotia Private Canadian Small Cap Pool Series I 1,964,438 2,771,141
399,778 Scotia Private Canadian Value Pool Series I 7,384,134 8,514,557
20,109,511 24,929,970
FOREIGN EQUITY FUNDS – 30.6%167,777 Scotia Private Emerging Markets Pool Series I 1,640,215 1,641,444125,934 Scotia Private Global Equity Pool Series I 1,636,342 2,539,593476,350 Scotia Private Global Real Estate Pool Series I 6,405,598 8,534,946317,354 Scotia Private International Equity Pool Series I 3,462,075 3,802,09175,302 Scotia Private International Small to Mid Cap
Value Pool Series I 1,213,145 1,708,226248,548 Scotia Private U.S. Large Cap Growth Pool Series I 1,799,305 3,578,845230,452 Scotia Private U.S. Value Pool Series I 2,594,573 3,613,466
18,751,252 25,418,611
TOTAL INVESTMENT PORTFOLIO 71,484,628 82,854,868
OTHER ASSETS, LESS LIABILITIES – 0.2% 130,166
NET ASSETS – 100.0% 82,985,034
Portfolio Adviser: 1832 Asset Management L.P.
The accompanying notes are an integral part of these financial statements.
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Pinnacle Balanced Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)There were no adjustments related to the measurement of the assets and liabilities at fair value on transition to IFRS and therefore,the Fund’s transition adjustments are limited to those disclosed in note 12.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
The Fund invests in underlying funds, which are exposed to interest rate risk. As at December 31, 2014, had the prevailing interestrates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and all other variables held constant, net assetsattributable to holders of redeemable units would have decreased or increased, respectively, by $442,501 or approximately 0.5%(December 31, 2013 – $337,885 or approximately 0.4%, January 1, 2013 – $426,104 or approximately 0.7%). In practice, actual resultsmay 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.
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 December 31,2014, approximately 60.6% (December 31, 2013 – 61.4%, January 1, 2013 – 60.2%) of the Fund’s net assets attributable to holders ofredeemable units were invested in Underlying Funds which were exposed to other price risk. If prices of these investments haddecreased or increased by 10%, with all other variables held constant, net assets attributable to holders of redeemable units of theFund would have decreased or increased, respectively, by approximately $5,034,858 (December 31, 2013 – $4,713,256, January 1,2013 – $3,720,838). In practice, actual results will differ 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
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $13,509 $ – $88,018 $ – $117,908
Redeemable units 82,985,034 – 76,736,021 – 61,863,780 –
$82,985,034 $13,509 $76,736,021 $88,018 $61,863,780 $117,908
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. T
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Pinnacle Balanced Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, geographical location, asset type,industry sector or counterparty type. The table(s) below is a summary of the Fund’s concentration risk.
Percentage of Net Assets (%)
December 31, 2014 December 31, 2013 January 1, 2013
Fixed Income Funds 39.2 38.1 39.0
Canadian Equity Funds 30.0 31.0 24.7
Foreign Equity Funds 30.6 30.4 35.0
vii) Fair value classification (note 2)
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Mutual Funds $82,854,868 $ – $ – $82,854,868
December 31, 2013 Level 1 Level 2 Level 3 Total
Mutual Funds $76,380,393 $ – $ – $76,380,393
January 1, 2013 Level 1 Level 2 Level 3 Total
Mutual Funds $61,565,200 $ – $ – $61,565,200
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The following tables provide information about the Fund’s interest in Underlying Funds as at December 31, 2014, December 31, 2013and January 1, 2013.
December 31, 2014
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $172,517,483 $ 1,641,444 2.0
Scotia Private Income Pool Series I 334,449,630 24,429,443 29.4
Scotia Private High Yield Income Pool Series I 910,438,382 8,076,844 9.7
Scotia Private Canadian Value Pool Series I 129,640,369 8,514,557 10.3
Scotia Private Canadian Growth Pool Series I 331,181,286 8,847,954 10.7
Scotia Private Canadian Small Cap Pool Series I 538,492,305 2,771,141 3.3
Scotia Private Canadian Mid Cap Pool Series I 57,129,896 4,796,318 5.8
Scotia Private U.S. Value Pool Series I 289,278,933 3,613,466 4.3
Scotia Private U.S. Large Cap Growth Pool Series I 70,405,342 3,578,845 4.3
Scotia Private International Equity Pool Series I 600,735,759 3,802,091 4.6
Scotia Private International Small to Mid Cap ValuePool Series I 37,451,491 1,708,226 2.0
Scotia Private Global Equity Pool Series I 459,739,970 2,539,593 3.1
Scotia Private Global Real Estate Pool Series I 273,276,031 8,534,946 10.3
$82,854,868 99.8
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Pinnacle Balanced Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $217,679,760 $ 1,510,986 2.0
Scotia Private Income Pool Series I 290,512,432 21,932,912 28.6
Scotia Private High Yield Income Pool Series I 759,668,764 7,314,925 9.5
Scotia Private Canadian Value Pool Series I 114,267,931 8,333,996 10.9
Scotia Private Canadian Growth Pool Series I 258,721,799 8,333,012 10.9
Scotia Private Canadian Small Cap Pool Series I 396,023,757 2,566,411 3.3
Scotia Private Canadian Mid Cap Pool Series I 52,724,440 4,571,951 6.0
Scotia Private U.S. Value Pool Series I 438,348,429 3,365,076 4.4
Scotia Private U.S. Large Cap Growth Pool Series I 54,297,013 3,374,276 4.4
Scotia Private International Equity Pool Series I 772,556,193 3,568,318 4.7
Scotia Private International Small to Mid Cap ValuePool Series I 33,697,742 1,583,918 2.1
Scotia Private Global Equity Pool Series I 518,669,821 2,356,762 3.1
Scotia Private Global Real Estate Pool Series I 314,362,180 7,567,850 9.9
$76,380,393 99.8
January 1, 2013
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $133,105,189 $ 1,326,259 2.1
Scotia Private Income Pool Series I 299,079,913 18,279,247 29.5
Scotia Private High Yield Income Pool Series I 572,230,047 6,077,572 9.8
Scotia Private Canadian Value Pool Series I 95,733,037 6,403,066 10.4
Scotia Private Canadian Growth Pool Series I 170,764,724 6,374,818 10.3
Scotia Private Canadian Small Cap Pool Series I 232,574,170 2,045,146 3.3
Scotia Private Canadian Mid Cap Pool Series I 40,759,759 3,531,739 5.7
Scotia Private U.S. Value Pool Series I 260,145,009 2,587,084 4.2
Scotia Private U.S. Large Cap Growth Pool Series I 38,142,399 2,540,459 4.1
Scotia Private International Equity Pool Series I 448,297,693 2,861,352 4.6
Scotia Private International Small to Mid Cap ValuePool Series I 27,531,072 1,326,598 2.1
Scotia Private Global Equity Pool Series I 337,699,478 1,944,645 3.1
Scotia Private Global Real Estate Pool Series I 223,229,954 6,267,215 10.1
$61,565,200 99.3
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Series A 13.23 13.23 12.32 12.32
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Pinnacle Growth Portfolio
STATEMENTS OF FINANCIAL POSITIONAs at
December 31,2014
December 31,2013
January 1,2013
ASSETSCurrent assetsInvestments
Non-derivative financial assets $12,274,317 $11,890,494 $7,587,965Cash 150,908 225,255 77,844Accrued investment income 168 76 66Receivable for securities sold – 10,400 23,999Subscriptions receivable 15,886 9,131 175
12,441,279 12,135,356 7,690,049
LIABILITIESCurrent liabilitiesPayable for securities purchased – 7,000 –
Net Assets attributable to holders ofredeemable units $12,441,279 $12,128,356 $7,690,049
NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS PER SERIES
Series A Units $12,441,279 $12,128,356 $7,690,049
UNITS OUTSTANDINGSeries A Units 900,654 945,071 695,476
NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS PER UNIT
Series A Units $ 13.81 $ 12.83 $ 11.06
STATEMENTS OF COMPREHENSIVE INCOMEFor the periods ended December 31,
2014 2013
INCOMENet gain (loss) on investments (note 2)
Dividends $ 229,182 $ 187,804Interest for distribution purposes 92,166 79,838Capital gains distributions received 231,357 147,495Net realized gain (loss) on non-derivative financial assets 233,747 265,628Change in unrealized appreciation (depreciation) of non-
derivative financial assets 492,298 1,044,031
Net gain (loss) on investments 1,278,750 1,724,796
Total income (loss) 1,278,750 1,724,796
EXPENSESManagement fees (note 5) 298,388 214,710Administration fees (note 6) 6,738 –Harmonized Sales Tax/Goods and Services Tax 30,690 22,723Audit fees (55) 1,245Independent Review Committee fees 33 849Custodian fees 203 418Filing fees 14,891 2,207Legal fees 110 1,383Unitholder reporting costs 3,720 4,220Unitholder administration and service fees 4,696 2,994Overdraft charges 100 90Foreign withholding taxes/tax reclaims 10,826 8,328
Total expenses 370,340 259,167Absorbed expenses – (944)
Net expenses 370,340 258,223
Increase (decrease) in Net Assets attributable to holders ofredeemable units from operations $ 908,410 $1,466,573
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES
Series A Units $ 908,410 $1,466,573
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT*
Series A Units $ 0.99 $ 1.94
WEIGHTED AVERAGE NUMBER OF UNITSSeries A Units 916,972 756,156
* 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.
STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the periods ended December 31,
2014 2013
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – BEGINNING OF PERIOD
Series A Units $12,128,356 $ 7,690,049
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS
Series A Units 908,410 1,466,573
REDEEMABLE UNIT TRANSACTIONSProceeds from issue
Series A Units 1,392,236 4,915,420Payments on redemption
Series A Units (1,987,723) (1,943,686)
(595,487) 2,971,734
INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS
Series A Units 312,923 4,438,307
NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS – END OF PERIOD
Series A Units $12,441,279 $12,128,356
STATEMENTS OF CASH FLOWSFor the periods ended December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of
redeemable units $ 908,410 $ 1,466,573Adjustments For:
Net realized (gain) loss on sale of non-derivative financialassets (233,747) (265,628)
Change in unrealized (appreciation) depreciation on saleof non-derivative financial assets (492,298) (1,044,031)
Purchases of non-derivative financial assets (851,852) (977,220)Proceeds from sale of non-derivative financial assets 1,197,474 1,958,875Accrued investment income (92) (10)
Net cash provided by (used in) operating activities 527,895 1,138,559
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 1,385,481 952,538Amounts paid on redemption of redeemable units (1,987,723) (1,943,686)
Net cash provided by (used in) financing activities (602,242) (991,148)Net increase (decrease) in cash (74,347) 147,411Cash (Bank Indebtedness) at beginning of period 225,255 77,844
CASH (BANK INDEBTEDNESS) AT END OF PERIOD $ 150,908 $ 225,255
Interest received(1) 92,074 79,828Dividends received, net of withholding taxes(1) 218,356 179,476
(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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Pinnacle Growth Portfolio (Continued)
SCHEDULE OF INVESTMENT PORTFOLIOAs at December 31, 2014Number ofUnits Issuer
AverageCost ($)
CarryingValue ($)
FIXED INCOME FUNDS – 19.4%73,661 Scotia Private High Yield Income Pool Series I 675,992 696,525
158,023 Scotia Private Income Pool Series I 1,745,709 1,723,132
2,421,701 2,419,657
CANADIAN EQUITY FUNDS – 48.7%144,442 Scotia Private Canadian Growth Pool Series I 1,893,727 2,212,47652,469 Scotia Private Canadian Mid Cap Pool Series I 816,916 1,058,62119,927 Scotia Private Canadian Small Cap Pool Series I 502,977 649,475
100,536 Scotia Private Canadian Value Pool Series I 1,910,499 2,141,245
5,124,119 6,061,817
FOREIGN EQUITY FUNDS – 30.5%24,914 Scotia Private Emerging Markets Pool Series I 235,832 243,75018,963 Scotia Private Global Equity Pool Series I 272,113 382,41170,369 Scotia Private Global Real Estate Pool Series I 978,640 1,260,82346,661 Scotia Private International Equity Pool Series I 456,445 559,02610,864 Scotia Private International Small to Mid Cap
Value Pool Series I 187,478 246,44939,027 Scotia Private U.S. Large Cap Growth Pool Series I 324,167 561,95534,339 Scotia Private U.S. Value Pool Series I 409,405 538,429
2,864,080 3,792,843
TOTAL INVESTMENT PORTFOLIO 10,409,900 12,274,317
OTHER ASSETS, LESS LIABILITIES – 1.4% 166,962
NET ASSETS – 100.0% 12,441,279
Portfolio Advisor: 1832 Asset Management L.P.
The accompanying notes are an integral part of these financial statements.
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Pinnacle Growth Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
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.
2. Transition to IFRS (note 12)There were no adjustments related to the measurement of the assets and liabilities at fair value on transition to IFRS and therefore,the Fund’s transition adjustments are limited to those disclosed in note 12.
3. Risks Associated with Financial Instruments (note 4)i) Interest rate risk
The Fund invests in underlying funds, which are exposed to interest rate risk. As at December 31, 2014, had the prevailing interestrates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and all other variables held constant, net assetsattributable to holders of redeemable units would have decreased or increased, respectively, by $32,464 or approximately 0.3%(December 31, 2013 – $26,190 or approximately 0.2%, January 1, 2013 – $25,333 or approximately 0.3%). In practice, actual resultsmay 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.
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 December 31,2014, approximately 79.2% (December 31, 2013 – 79.1%, January 1, 2013 – 79.3%) of the Fund’s net assets attributable to holders ofredeemable units were invested in Underlying Funds which were exposed to other price risk. If prices of these investments haddecreased or increased by 10%, with all other variables held constant, net assets attributable to holders of redeemable units of theFund would have decreased or increased, respectively, by approximately $985,466 (December 31, 2013 – $959,578, January 1, 2013 –$609,564). In practice, actual results will differ 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
The table below summarizes the Fund’s financial liabilities based on the remaining period to the contractual maturity date.
December 31, 2014 December 31, 2013 January 1, 2013
On demandLess than3 months On demand
Less than3 months On demand
Less than3 months
Accounts payable and accrued liabilities $ – $ – $ – $7,000 $ – $ –
Redeemable units 12,441,279 – 12,128,356 – 7,690,049 –
$12,441,279 $ – $12,128,356 $7,000 $7,690,049 $ –
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.T
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Pinnacle Growth Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
vi) Concentration risk
Concentration risk arises as a result of the concentration of exposures within the same category, geographical location, asset type,industry sector or counterparty type. The table(s) below is a summary of the Fund’s concentration risk.
Percentage of Net Assets (%)
December 31, 2014 December 31, 2013 January 1, 2013
Fixed Income Funds 19.4 18.9 19.4
Canadian Equity Funds 48.7 48.6 49.1
Foreign Equity Funds 30.5 30.5 30.2
The tables below illustrate the classification of the Fund’s financial instruments within the fair value hierarchy as at December 31,2014, December 31, 2013 and January 1, 2013.
December 31, 2014 Level 1 Level 2 Level 3 Total
Mutual Funds $12,274,317 $ – $ – $12,274,317
December 31, 2013 Level 1 Level 2 Level 3 Total
Mutual Funds $11,890,494 $ – $ – $11,890,494
January 1, 2013 Level 1 Level 2 Level 3 Total
Mutual Funds $ 7,587,965 $ – $ – $ 7,587,965
Transfers Between LevelsDuring the periods ended December 31, 2014 and December 31, 2013, there were no transfers between Level 1 and Level 2.
4. Offsetting of Financial Assets and Liabilities (note 2)As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund did not enter into any agreement whereby the financialinstruments were eligible for offset.
5. Interest in Underlying Funds (note 2)The following tables provide information about the Fund’s interest in Underlying Funds as at December 31, 2014, December 31, 2013and January 1, 2013.
December 31, 2014
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $172,517,483 $ 243,750 2.0
Scotia Private Income Pool Series I 334,449,630 1,723,132 13.8
Scotia Private High Yield Income Pool Series I 910,438,382 696,525 5.6
Scotia Private Canadian Value Pool Series I 129,640,369 2,141,245 17.2
Scotia Private Canadian Growth Pool Series I 331,181,286 2,212,476 17.8
Scotia Private Canadian Small Cap Pool Series I 538,492,305 649,475 5.2
Scotia Private Canadian Mid Cap Pool Series I 57,129,896 1,058,621 8.5
Scotia Private U.S. Value Pool Series I 289,278,933 538,429 4.3
Scotia Private U.S. Large Cap Growth Pool Series I 70,405,342 561,955 4.5
Scotia Private International Equity Pool Series I 600,735,759 559,026 4.5
Scotia Private International Small to Mid Cap ValuePool Series I 37,451,491 246,449 2.0
Scotia Private Global Equity Pool Series I 459,739,970 382,411 3.1
Scotia Private Global Real Estate Pool Series I 273,276,031 1,260,823 10.1
$12,274,317 98.6
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Pinnacle Growth Portfolio (Continued)
FUND SPECIFIC NOTESFor the periods indicated in Note 1.
December 31, 2013
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $217,679,760 $ 237,518 2.0
Scotia Private Income Pool Series I 290,512,432 1,601,348 13.2
Scotia Private High Yield Income Pool Series I 759,668,764 693,366 5.7
Scotia Private Canadian Value Pool Series I 114,267,931 2,126,476 17.5
Scotia Private Canadian Growth Pool Series I 258,721,799 2,116,244 17.4
Scotia Private Canadian Small Cap Pool Series I 396,023,757 617,482 5.1
Scotia Private Canadian Mid Cap Pool Series I 52,724,440 1,033,552 8.5
Scotia Private U.S. Value Pool Series I 438,348,429 504,394 4.2
Scotia Private U.S. Large Cap Growth Pool Series I 54,297,013 504,587 4.2
Scotia Private U.S. Mid Cap Value Pool Series I 25,917,835 137,659 1.1
Scotia Private International Equity Pool Series I 772,556,193 537,989 4.4
Scotia Private International Small to Mid Cap ValuePool Series I 33,697,742 238,764 2.0
Scotia Private Global Equity Pool Series I 518,669,821 356,233 2.9
Scotia Private Global Real Estate Pool Series I 314,362,180 1,184,882 9.8
$11,890,494 98.0
January 1, 2013
Underlying FundNet asset value ofunderlying fund
Investmentfair value
% of NetAssets
Scotia Private Emerging Markets Pool Series I $133,105,189 $ 165,306 2.1
Scotia Private Income Pool Series I 299,079,913 1,043,920 13.6
Scotia Private High Yield Income Pool Series I 572,230,047 448,410 5.8
Scotia Private Canadian Value Pool Series I 95,733,037 1,356,315 17.6
Scotia Private Canadian Growth Pool Series I 170,764,724 1,349,775 17.6
Scotia Private Canadian Small Cap Pool Series I 232,574,170 402,694 5.2
Scotia Private Canadian Mid Cap Pool Series I 40,759,759 666,648 8.7
Scotia Private U.S. Value Pool Series I 260,145,009 320,914 4.2
Scotia Private U.S. Large Cap Growth Pool Series I 38,142,399 321,828 4.2
Scotia Private International Equity Pool Series I 448,297,693 349,959 4.6
Scotia Private International Small to Mid Cap ValuePool Series I 27,531,072 163,178 2.1
Scotia Private Global Equity Pool Series I 337,699,478 239,015 3.1
Scotia Private Global Real Estate Pool Series I 223,229,954 760,003 9.9
$7,587,965 98.7
6. Comparison of Net Asset Value per Unit and Net Assets per Unit (note 2)The table below provides a comparison of the IFRS net assets per unit and Pricing NAV per unit. The primary reason for thedifference between the IFRS net assets per unit and Pricing NAV per unit is described in Note 2. There were no material differencesbetween the IFRS net assets per unit and Pricing NAV per unit as at January 1, 2013 and are hence not presented.
December 31, 2014 December 31, 2013
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Pricing NAVper unit ($)
IFRSnet assetsper unit ($)
Series A 13.81 13.81 12.83 12.83
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Notes to the Financial StatementsFor the years indicated in Note 1.
1. The Funds1832 Asset Management L.P., a wholly owned subsidiary of theBank of Nova Scotia (“Scotiabank”), is the manager andtrustee of the Funds. In this document, “we”, “us”, “our”, the“Manager”, the “Trustee”, and “1832 Asset Management” referto 1832 Asset Management L.P. The registered office of theFunds is 1 Adelaide St. E, 28th Floor, Toronto, Ontario.
The funds presented in these financial statements are eitheropen-ended mutual fund trusts (“Trust Funds” or “Portfolios”).We refer to a Trust Fund, or a Portfolio, as a “Fund” andcollectively, as the “Funds”.
All of the Scotia Private Pools and Pinnacle Portfoliospresented in these financial statements are open ended mutualfund trusts established under the laws of the Province ofOntario pursuant to an Amended and Restated MasterDeclaration of Trust (“Declaration of Trust”) datedNovember 24, 2011, as amended from time to time.
The Schedule of Investment Portfolio for each of the Funds isas at December 31, 2014. The Statements of Financial Positionare as at December 31, 2014, December 31, 2013 andJanuary, 1, 2013, and the Statements of ComprehensiveIncome, Changes in Net Assets Attributable to Holders ofRedeemable Units and Cash Flows are for the years endedDecember 31, 2014 and 2013. Throughout this document,reference to the reporting period refers to the reporting perioddescribed above.
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 and authorized for issue on March 6, 2015.
The investment objectives for each of the Funds are providedin the respective Fund’s “Fund Specific Notes”. The inceptiondate for each Fund is as follows:
Scotia Private Pools Inception Date
Scotia Private American Core-Plus Bond Pool January 28, 2002
Scotia Private Canadian Growth Pool September 3, 1997
Scotia Private Canadian Mid Cap Pool January 28, 2002
Scotia Private Canadian Small Cap Pool September 3, 1997
Scotia Private Canadian Value Pool September 3, 1997
Scotia Private Emerging Markets Pool September 8, 2010
Scotia Private Global Equity Pool September 3, 1997
Scotia Private Global Real Estate Pool January 28, 2002
Scotia Private High Yield Income Pool September 3, 1997
Scotia Private Income 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 Short Term Income Pool September 3, 1997
Scotia Private Strategic Balanced Pool September 3, 1997
Scotia Private U.S. Large Cap Growth Pool January 18, 2001
Scotia Private U.S. Mid Cap Growth Pool September 3, 1997
Scotia Private U.S. Mid Cap Value Pool January 28, 2002
Scotia Private U.S. Value Pool September 3, 1997
Pinnacle Portfolios
Pinnacle Balanced Portfolio April 22, 2005
Pinnacle Growth Portfolio April 22, 2005
Pinnacle Income Portfolio April 22, 2005
Each of the Funds may offer one or more Series of securities:Pinnacle Series/Series A units, Series F units, Series I units,and Series M units. Each Series of a Fund is authorized to issuean unlimited number of units, which are redeemable at theoption of the unitholder at their respective net asset value nextdetermined following receipt of the sell order by the Fund.Each Series of units of a Fund is intended for differentinvestors. A description of each Series of units is providedbelow:
• 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.
• Series F units are generally available to investors who havefee-based accounts.
• 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.
The Manager has Guidelines for Business Conduct (the“Code”) which applies to all of its employees. The Code is inplace to protect the interest of all of the Manager’s clients. TheCode provides policies governing the conduct of businessincluding conflicts of interest, privacy issues andconfidentiality.
2. Summary of Significant Accounting PoliciesThese financial statements have been prepared in compliancewith International Financial Reporting Standards (“IFRS”) aspublished by the International Accounting Standards Board(IASB). The Funds adopted this basis of accounting in 2014 asrequired by Canadian securities legislation and the CanadianAccounting Standards Board. Previously, the Funds preparedtheir financial statements in accordance with Canadiangenerally accepted accounting principles as defined in Part Vof the CPA Handbook (Canadian GAAP). The Funds haveconsistently 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 of
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significant changes in accounting policies from those used inthe Funds’ financial statements for the year endedDecember 31, 2013 prepared under Canadian GAAP.
(a) Classification of Redeemable Units Issued by the Fund
The Funds’ outstanding redeemable units qualify as “puttableinstruments” as required by the International AccountingStandard 32: Financial Instruments: Presentation (“IAS 32”)which states that units or shares of an entity that include acontractual obligation for the issuer to repurchase or redeemthem for cash or another financial asset should be classified as“puttable instruments” or financial liability. Certain Fundsissue different types of units that are equally subordinated buthave different features. In addition, the Funds have acontractual obligation to distribute any taxable incomeannually that allows the unitholders to request cash paymentfor any distributions or dividends paid. These features violatecriteria that are required in order for the redeemable units tobe presented as equity under IAS 32. Consequently, the Funds’outstanding redeemable units are classified as financialliabilities in these financial statements.
(b) 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.
• 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 Funds’ 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.
(c) Financial instruments
The Funds recognize financial instruments at fair value uponinitial recognition, plus transaction costs in the case offinancial instruments measured at amortized cost. The Funds’investments and derivative assets and liabilities are measuredat fair value through profit or loss (FVTPL) includinginvestments in securities which have been designated atFVTPL and derivatives which are classified as held for trading.Purchases and sales of financial assets are recognized at theirtrade date.
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.
(d) 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’ accounting policies for measuring the fair value ofits investments and derivatives are identical to those used inmeasuring its net asset value for transactions with unitholdersin accordance with Part 14 of National Instrument 81-106Investment Funds for Continuous Disclosure (“NI 81-106”),except where the last traded market price for financial assetsand liabilities are not within the bid-ask spread as describedabove. A comparison of the net assets per unit in theStatements of Financial position in accordance to IFRS (“IFRSNAV”) and the net assets per unit calculated in accordance toNI 81-106 (“Pricing NAV”) are presented in the “Fund SpecificNotes” for each Fund.
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 use a variety of methods and make assumptions that arebased 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 fairvalue measurements included in the financial statements ofthe Funds, including level 3 measurements. The Managerobtains pricing from a third party pricing vendor, which ismonitored and reviewed by the valuation team daily. At eachfinancial reporting date, the Manager reviews and approves alllevel 3 fair value measurements. The Funds also have aValuation Committee which includes the Chief FinancialOfficer, members of the finance team, as well as members ofthe portfolio management and compliance teams. Thecommittee meets quarterly to perform detailed reviews of thevaluations of investments held by the Funds.
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 based oninformation provided by an independent pricing source.
(ii) Fixed income securities, including bonds andmortgage-backed securities, are valued using modelswith inputs including interest rate curves, creditspreads and volatilities.
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(iii) Short-term debt instruments are carried at amortizedcost, which approximates fair value.
(iv) Mortgages are valued at their fair value using theprevailing rate of return on new mortgages of similartype and term.
(v) 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.
(vi) 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.
(vii) 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.
(viii) 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 futures contracts” or“Index futures contract income”. Amounts receivable(payable) on settlement of futures contracts arereflected in the Statements of Financial Position as“Margin deposited on futures” which includes the anymargin cash held in relations to the futures account.
(ix) 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 includedas a 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 of
Comprehensive Income. When a written call option isexercised, the Fund will record a realized loss if thecost of closing the transaction exceeds the premiumreceived; the Fund will record a realized gain if thepremium received is greater than the amount paid forclosing the transaction. When a written put isexercised, the cost of the security purchased is reducedby the premiums received at the time the option waswritten.
(x) A forward equity accumulator contract(“accumulator”) is an agreement between two parties(a Fund and the counterparty) that require thecounterparty to sell shares of the specified underlyingsecurity at a predetermined strike price to the Fund(the buyer). A Fund buys a forward accumulator on theexpectation that a certain stock will trade within aspecific price range during the term of the contract.This range is bound by the strike price and a maximumprice (usually a knock-out that triggers termination ifthe underlying price goes above this threshold).
The buyer has an obligation to purchase the underlyingshares acquired by the counterparty with periodicsettlement as specified in the contract. The sharesacquired are included in the Statements of FinancialPosition in “Investments”, and the change in value ofthe accumulator contract is included in the Statementsof Financial Position in “Unrealized gain (loss) onaccumulator contracts” and in the Statements ofComprehensive Income in “Change in unrealizedappreciation (depreciation) of accumulator contracts”.When a forward equity accumulator contract is closedout, gains or losses are realized and included in theStatements of Comprehensive Income in “Net realizedgain (loss) on accumulator contracts”.
(xi) Financial assets and liabilities other than investmentsecurities are valued at cost or amortized cost. Thesebalances are short-term in nature; therefore, theircarrying values approximate fair values.
(e) Investment transactions and income recognition
Investment transactions are accounted for on a trade datebasis. The cost of an investment security (excludingtransaction costs), realized gains/losses and unrealized gain/losses is determined on an average cost basis. Transactioncosts, such as brokerage commissions incurred in theacquisition or disposal investment securities are shown asexpenses in the Statements of Comprehensive Income.
Dividend income and distributions from underlying funds arerecognized on the ex-dividend date. Distributions receivedfrom income trusts are recognized based on the nature of theunderlying components such as dividend income, interestincome, capital gains, and return of capital by applyingprevious year characterizations reported by the trust ascurrent year characterizations are not available until thefollowing year.
Interest for distribution purposes represents the couponinterest received by the Funds, recognized on an accrual basis.The Funds do not amortize premiums paid or discountsreceived on the purchase of fixed income securities except for
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zero coupon bonds which are amortized on a straight line basis.Realized gain or loss on the sale of short-term debt instrumentsare recorded as an adjustment to interest income.
Income, realized gain (loss) and unrealized gain (loss) areallocated among the Series on a pro rata basis.
(f) Functional and presentation currency and foreign exchangetranslation
The functional and presentation currency of the Funds is theCanadian dollar. Canadian dollars is the currency of primaryeconomic environment in which the Funds operate or wheremixed indicators exist in the primary environment, theCanadian dollar is the currency in which they raise capital.
Any other currency other than functional currency representsforeign currency to the Funds. Amounts denominated inforeign currencies are converted into the functional currencyas 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.
(g) 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 ofunits, the increase or decrease in net assets attributable toholders of redeemable units from operations for the periodattributable to each Series divided by the weighted averagenumber of units outstanding for the corresponding Seriesduring the period.
(h) Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount ispresented in the Statements of Financial Position only when aFund has a legal right to offset the amounts and it intendseither to settle on a net basis or to realize the asset and settlethe liability simultaneously. Income and expenses arepresented on a net basis only when permitted under IFRS, forgains and losses arising from a group of similar transactions,such as gains and losses from financial instruments at fairvalue through profit or loss. Financial assets and liabilities thatare subject to master netting or comparable agreements andthe related potential effect of offsetting are disclosed in therespective Fund’s “Fund Specific Notes”.
(i) Investments in unconsolidated structured entities
Certain Funds invest in mutual funds managed by the Manageror by third party investment managers. The relevant Fundsconsider all investments in other funds (“Underlying Funds”)to be investments in unconsolidated structured entities. TheseFunds invest in Underlying Funds whose objectives will assistthe Funds in achieving their primary objectives and whoseinvestment strategy does not include the use of leverage. The
Underlying Funds finance their operations by issuingredeemable units or shares which are puttable at the holder’soption, and entitle the holder to a proportional stake in therespective fund’s net assets. The Funds hold redeemableshares or units in each of its Underlying Funds.
The change in fair value of each Underlying Fund is included inthe Statements of Comprehensive Income in ‘Change inunrealized appreciation (depreciation) of non-derivativefinancial assets’.
The Funds’ investments in Underlying Funds are subject to theterms and conditions of the respective Underlying Funds’offering documentation and are susceptible to market pricerisk arising from uncertainties about future values of thoseUnderlying Funds. The exposure to investments in UnderlyingFunds at fair value is disclosed in the Fund’s “Fund SpecificNotes”. These investments are included in non-derivativefinancial assets in the Statements of Financial Position. TheFunds’ maximum exposure to loss from its interests inUnderlying Funds is equal to the total carrying value of itsinvestments in Underlying Funds.
3. Significant accounting judgments andestimatesThe preparation of financial statements requires managementto use judgment in applying its accounting policies and tomake estimates and assumptions about the future. Theseestimates are made based on information available as at thedate of issuance of the financial statements. Actual resultscould materially differ from those estimates. The followingdiscusses the most significant accounting judgments andestimates that the Funds have made in preparing the financialstatements:
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 fairvalues 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 theFunds, 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, Financial Instruments:Recognition and Measurement. The most significant judgmentsmade include the determination that certain financialinstruments are held-for-trading and that the fair value optioncan be applied to those which are not.
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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 thatincludes monitoring compliance with investment restrictionsto ensure that the Funds are being managed in accordancewith the Funds’ stated investment objectives, strategies andsecurities 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 risk(i) 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 itsinvestments 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 Fund’s may invest in monetary and non-monetary assetsdenominated in currencies other than their functionalcurrency. Currency risk is the risk that the value of foreigninvestments will fluctuate due to changes in the foreignexchange rates of those currencies in relation to a Fund’sfunctional currency. Other financial assets (includingdividends and interest receivable and receivable forinvestments sold) and financial liabilities that aredenominated in foreign currencies do not expose the Funds tosignificant currency risk. Funds may enter into foreignexchange forward contracts or currency futures contracts forhedging purposes to reduce their foreign currency riskexposure.
(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 riskor currency risk) caused by factors specific to a security, itsissuer or all factors affecting a market or a market segment.Exposure to other price risk is mainly in equities andcommodities. The maximum risk resulting from these financialinstruments is equivalent to their fair value, except for writtenoptions and futures contracts sold, where possible losses canbe unlimited.
(iv) Credit riskCredit risk is the risk that the counterparty to a financialinstrument will fail to discharge an obligation or commitmentthat it has entered into with the Funds. A Fund’s investment indebt instruments represents the main concentration of creditrisk. The fair value of debt instruments includes considerationof the creditworthiness of the issuer, and accordingly,represents the maximum credit risk exposure to the Funds.Credit risk may also exist in relation to counterparties toderivatives. All the transactions in listed securities are settledor paid upon delivery using approved brokers. The risk ofdefault is considered minimal, as delivery of securities sold isonly made once the broker has received payment. Payment isonly made on a purchase once the securities have beenreceived 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.
(a) Liquidity risk
The Funds’ exposure to liquidity risk arises primarily from thedaily cash redemption of units. The Funds primarily invest insecurities that are traded in active markets and can be readilydisposed of. In addition, the Funds aim to retain sufficient cashand cash equivalent positions to maintain liquidity. The Fundsmay, 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.
(b) 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”.
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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
Pinnacle SeriesUnits or Series A Series F Units Series M Units
Scotia Private Pools
Scotia Private American
Core-Plus Bond Pool – 0.75% –
Scotia Private Canadian
Growth Pool – 1.00% –
Scotia Private Canadian Mid
Cap Pool – 1.00% –
Scotia Private Canadian
Small Cap Pool – 1.00% –
Scotia Private Canadian
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% –
Scotia Private High Yield
Income Pool – 0.75% 0.30%
Scotia Private Income Pool – 0.70% –
Scotia Private International
Equity Pool – 1.00% –
Scotia Private International
Small to Mid Cap Value Pool – 1.00% –
Scotia Private Short Term
Income Pool – 0.50% –
Scotia Private Strategic
Balanced Pool – 1.00% –
Scotia Private U.S. Large Cap
Growth Pool – 1.00% –
Scotia Private U.S. Mid Cap
Growth Pool – 0.80% 0.55%
Scotia Private U.S. Mid Cap
Value Pool – 0.80% 0.55%
Scotia Private U.S. Value Pool – 1.00% –
Pinnacle Portfolios
Pinnacle Balanced Portfolio 2.10% – –
Pinnacle Growth Portfolio 2.40% – –
Pinnacle Income Portfolio 1.85% – –
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 were loweredfrom 1.00% to 0.80%.
6. Fixed Administration FeesEffective August 22, 2014, the Manager began paying certainoperating expenses of the Funds. These expenses includeregulatory filing fees and other day-to-day operating expensesincluding, but not limited to, transfer agency andrecordkeeping, accounting and fund valuation costs, custodyfees, audit and legal fees, administration costs, bank charges,costs of preparing and distributing annual and semi-annualreports, prospectuses, annual information forms, Fund Factsand statements, investor communications and continuousdisclosure materials. The Manager is not obligated to pay anyother expense, cost or fee, including those arising from newgovernment or regulatory requirements relating to theforegoing expenses, costs and fees. In return, each Series of theFunds pays a fixed administration fee to the Manager (the“Fixed Administration fee”). Up to December 31, 2016, theFixed Administration Fee payable by each Series of the Fundsare subject to a transitional adjustment payment, details ofwhich are presented in the Fund’s simplified prospectus. TheFixed Administration Fee is calculated and accrued daily andpaid monthly.
In addition to the Fixed Administration Fee, each Series of theFunds pays certain operating expenses directly (“Other FundCosts”.). These include the costs and expenses related to theIRC of the Funds, costs associated with the conversion to IFRSand the ongoing audit costs associated with compliance withIFRS, any new fees introduced by a securities regulator orother government authority that is based on the assets or othercriteria of the Funds, any transaction costs, including all feesand costs related to derivatives, and any borrowing costs, andtaxes (including, but not limited to, GST or HST, asapplicable). Refer to the simplified prospectus of the Funds formore details on Other Fund Costs. Other Fund Costs will beallocated among the Funds and each Series of the Fund isallocated its own expenses and its proportionate share of theseexpenses that are common to all Series.
Prior to August 22, 2014, the Funds were responsible foroperating expenses relating to the carrying on of its business.Each Series of the Funds were allocated its own expenses andits proportionate share of the Fund’s expenses that arecommon to all Series. Operating expenses may include legalfees and other costs incurred in order to comply with legal andregulatory requirements and policies, audit fees, custodial fees,taxes, unitholder communication costs, IRC fees and otheradministration costs. Examples of other administrative costsinclude departmental expenses incurred and paid by theManager which support the daily operation of the Funds.
The Manager, at its’ sole discretion, absorbs operatingexpenses otherwise payable by certain Series. The absorbedexpenses are reflected in the Statements of ComprehensiveIncome.
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The Administration Fee is calculated and accrued daily and paid monthly. The maximum annual rates of the administration fee,which are a percentage of the net asset value for each series of units of each Fund, are as follows:
Scotia Private Pools Series A Units Series Pinnacle Units Series Advisor Units Series F Units Series I Units Series M Units
Scotia Private American Core-Plus Bond Pool – 0.18 – 0.10 0.03 –
Scotia Private Canadian Growth Pool – 0.15 – 0.10 0.04 –
Scotia Private Canadian Mid Cap Pool – 0.24 – 0.10 0.08 –
Scotia Private Canadian Small Cap Pool – 0.22 – 0.10 0.03 –
Scotia Private Canadian Value Pool – 0.15 – 0.10 0.05 –
Scotia Private Emerging Markets Pool – 0.23 – – 0.07 0.09
Scotia Private Global Equity Pool – 0.31 – 0.10 0.04 –
Scotia Private Global Real Estate Pool – 0.11 – 0.10 0.03 –
Scotia Private High Yield Income Pool – 0.11 – 0.05 0.03 0.03
Scotia Private Income Pool – 0.07 – 0.08 0.03 –
Scotia Private International Equity Pool – 0.24 – 0.10 0.04 –
Scotia Private International Small to Mid Cap
Value Pool – 0.50 – 0.10 0.10 –
Scotia Private Short Term Income Pool – – – – – –
Scotia Private Strategic Balanced Pool – 0.30 – 0.10 – –
Scotia Private U.S. Large Cap Growth Pool – 0.27 – 0.10 0.07 –
Scotia Private U.S. Mid Cap Growth Pool – 0.50 – 0.10 0.04 0.05
Scotia Private U.S. Mid Cap Value Pool – 0.49 – 0.10 0.10 0.08
Scotia Private U.S. Value Pool – 0.21 – 0.10 0.03 –
Pinnacle Portfolios
Pinnacle Balanced Portfolio 0.08 – – – – –
Pinnacle Growth Portfolio 0.15 – – – – –
Pinnacle Income Portfolio 0.15 – – – – –
Administration service expense paid to the Manager for the ofperiod from January 1, 2014 to August 21, 2014 and for the yearended December 31, 2013 are presented below:
Scotia Private Pools August 21, 2014 December 31, 2013
Scotia Private Short Term Income Pool 418 1,059
Scotia Private Income Pool 15,687 47,804
Scotia Private High Yield Income Pool 41,888 115,971
Scotia Private American Core-Plus Bond
Pool 26,017 61,444
Scotia Private Global Real Estate Pool 12,139 46,182
Scotia Private Strategic Balanced Pool 2,104 5,584
Scotia Private Canadian Value Pool 6,697 17,846
Scotia Private Canadian Mid Cap Pool 3,186 8,164
Scotia Private Canadian Growth Pool 14,375 37,457
Scotia Private Canadian Small Cap Pool 22,240 55,657
Scotia Private U.S. Value Pool 14,701 62,271
Scotia Private U.S. Mid Cap Value Pool 1,459 3,888
Scotia Private U.S. Large Cap Growth
Pool 3,311 8,380
Scotia Private U.S. Mid Cap Growth
Pool 6,739 15,191
Scotia Private International Equity Pool 26,552 107,048
Scotia Private International Small to Mid
Cap Value Pool 2,202 5,438
Scotia Private Emerging Markets Pool 8,100 30,551
Scotia Private Global Equity Pool 19,484 75,632
Pinnacle Portfolios
Pinnacle Income Portfolio 669 2,272
Pinnacle Balanced Portfolio 4,056 11,545
Pinnacle Growth Portfolio 634 1,724
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 Private
Pools’ simplified prospectus. Each Series of the Funds incursthe expenses which are directly attributable to that Series.Common expenses of the Funds are allocated on a pro ratabasis to each Series of the Funds based on its respective NAV.
7. 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 Funds and entitles the unitholder toa proportionate undivided interest in the Net Asset Value ofthe Funds. Unitholders are entitled to distributions whendeclared. Distributions on units of a Fund are reinvested inadditional units of the Fund or at the option of the unitholder,paid in cash. The Funds’ capital is managed in accordance witheach of the Funds’ investment objectives, policies andrestrictions, as outlined in the Funds’ prospectus. The Fundshave no specific restrictions or specific capital requirementson the subscriptions or redemptions of units, other thanminimum subscription 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.
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For the years ended December 31, 2014 and 2014, the following number of units were issued, re-invested and redeemed:
December 2014 December 2013
Scotia Private PoolsOpeningUnits
UnitsIssued
UnitsReinvested
UnitsRedeemed (i)
EndingUnits
OpeningUnits
UnitsIssued
UnitsReinvested
UnitsRedeemed (i)
EndingUnits
Scotia Private American Core-Plus Bond
Pool
Pinnacle Series Units 3,610,634 1,266,398 108,843 695,869 4,290,006 3,035,648 1,022,064 89,986 537,064 3,610,634
Series F Units 15,359 248 250 2,056 13,801 12,033 3,737 242 653 15,359
Series I Units 41,999,468 19,803,843 1,642,545 1,999,474 61,446,382 26,003,440 16,613,367 1,052,869 1,670,207 41,999,468
Scotia Private Canadian Growth Pool
Pinnacle Series Units 7,754,708 1,542,511 130,241 1,276,759 8,150,701 7,818,029 1,310,924 133,704 1,507,949 7,754,708
Series F Units 77,444 13,725 303 18,421 73,051 49,041 36,005 755 8,357 77,444
Series I Units 10,946,464 3,903,490 231,669 1,562,987 13,518,636 7,013,282 3,915,232 199,672 181,722 10,946,464
Scotia Private Canadian Mid Cap Pool
Pinnacle Series Units 2,242,982 407,427 369,392 458,236 2,561,565 2,357,831 394,541 30,134 539,524 2,242,982
Series F Units 8,643 2,190 965 2,434 9,364 4,459 5,359 58 1,233 8,643
Series I Units 264,099 31,793 44,094 31,889 308,097 293,473 10,664 3,999 44,037 264,099
Scotia Private Canadian Small Cap Pool
Pinnacle Series Units 1,896,165 311,923 240,559 335,657 2,112,990 1,882,608 321,141 178,667 486,251 1,896,165
Series F Units 26,365 35,341 5,924 9,521 58,109 16,758 9,989 2,238 2,620 26,365
Series I Units 9,927,139 3,752,870 1,678,429 936,235 14,422,203 7,230,922 2,320,302 945,348 569,433 9,927,139
Scotia Private Canadian Value Pool
Pinnacle Series Units 5,009,436 1,339,034 142,400 824,480 5,666,390 4,641,593 1,134,657 125,303 892,117 5,009,436
Series F Units 31,767 3,044 281 7,545 27,547 26,528 10,074 468 5,303 31,767
Series I Units 518,352 43,189 13,648 57,239 517,950 505,435 31,192 13,584 31,859 518,352
Scotia Private Emerging Markets Pool
Pinnacle Series Units 2,922,260 847,884 75,817 366,961 3,479,000 2,481,754 945,992 36,362 541,848 2,922,260
Series I Units 18,695,803 4,836,502 302,743 11,029,075 12,805,973 10,505,631 8,230,723 257,638 298,189 18,695,803
Series M Units 2,173,362 790,758 20,362 1,572,721 1,411,761 1,779,549 1,240,195 14,155 860,537 2,173,362
Scotia Private Global Equity Pool
Pinnacle Series Units 2,433,412 469,805 19,254 404,500 2,517,971 2,580,008 291,702 21,558 459,856 2,433,412
Series F Units 26,072 32,384 113 11,582 46,987 26,575 7,073 25 7,601 26,072
Series I Units 27,173,176 5,565,242 209,222 12,674,245 20,273,395 22,253,165 7,321,959 316,180 2,718,128 27,173,176
Scotia Private Global Real Estate Pool
Pinnacle Series Units 7,800,285 1,363,439 278,728 1,134,867 8,307,585 7,691,069 1,632,913 158,898 1,682,595 7,800,285
Series F Units 31,254 78,898 2,466 12,592 100,026 14,601 19,227 321 2,895 31,254
Series I Units 13,478,887 1,896,280 247,247 8,475,521 7,146,893 8,805,446 4,896,698 283,964 507,221 13,478,887
Scotia Private High Yield Income Pool
Pinnacle Series Units 13,256,227 2,588,402 790,910 2,078,541 14,556,998 12,896,125 2,210,625 808,348 2,658,871 13,256,227
Series F Units 1,355,346 248,200 16,439 83,404 1,536,581 1,154,540 239,877 16,543 55,614 1,355,346
Series I Units 34,719,535 15,810,414 2,578,020 3,116,676 49,991,293 22,913,212 11,663,520 1,985,672 1,842,869 34,719,535
Series M Units 31,104,735 10,828,415 1,228,355 13,047,674 30,113,831 24,060,230 14,331,585 1,259,528 8,546,608 31,104,735
Scotia Private Income Pool
Pinnacle Series Units 24,308,721 6,988,960 820,863 4,539,515 27,579,029 21,510,621 5,312,930 2,168,123 4,682,953 24,308,721
Series F Units 458,770 12,835 5,543 226,718 250,430 1,607,255 87,016 39,668 1,275,169 458,770
Series I Units 2,787,803 234,867 92,255 181,701 2,933,224 2,405,181 244,608 249,788 111,774 2,787,803
Scotia Private International Equity Pool
Pinnacle Series Units 5,004,030 1,462,265 85,555 718,127 5,833,723 5,034,866 863,955 65,614 960,405 5,004,030
Series F Units 66,466 13,039 271 16,166 63,610 45,397 23,387 427 2,745 66,466
Series I Units 59,631,634 15,488,857 745,148 31,456,653 44,408,986 41,441,228 19,354,207 900,251 2,064,052 59,631,634
Scotia Private International Small to Mid
Cap Value Pool
Pinnacle Series Units 1,498,610 294,809 21,783 289,433 1,525,769 1,705,567 260,902 24,079 491,938 1,498,610
Series F Units 11,345 32,527 391 5,337 38,926 7,894 3,775 132 456 11,345
Series I Units 109,111 5,593 1,963 10,463 106,204 150,134 2,421 2,230 45,674 109,111
Scotia Private Short Term Income Pool
Pinnacle Series Units 612,953 420,149 2,939 467,820 568,221 871,221 831,009 3,881 1,093,158 612,953
Series F Units 8,316 15,730 52 15,066 9,032 7,267 4,274 50 3,275 8,316
Scotia Private Strategic Balanced Pool
Pinnacle Series Units 2,022,256 648,638 44,187 400,025 2,315,056 2,218,038 185,195 46,841 427,818 2,022,256
Series F Units 35,496 7,615 342 21,573 21,880 21,991 13,086 419 – 35,496
160
December 2014 December 2013
Scotia Private PoolsOpeningUnits
UnitsIssued
UnitsReinvested
UnitsRedeemed (i)
EndingUnits
OpeningUnits
UnitsIssued
UnitsReinvested
UnitsRedeemed (i)
EndingUnits
Scotia Private U.S. Large Cap Growth Pool
Pinnacle Series Units 4,393,127 940,684 44,991 847,816 4,530,986 4,201,942 971,677 41,417 821,909 4,393,127
Series F Units 27,924 13,220 70 5,656 35,558 13,263 17,821 134 3,294 27,924
Series I Units 367,599 46,365 4,141 71,661 346,444 404,494 21,897 4,073 62,865 367,599
Scotia Private U.S. Mid Cap Growth Pool
Pinnacle Series Units 477,061 178,168 461 97,156 558,534 449,479 128,203 747 101,368 477,061
Series F Units 4,056 1,668 – 130 5,594 2,825 1,288 – 57 4,056
Series I Units 3,634,890 1,928,927 25,634 298,242 5,291,209 2,607,812 1,074,056 20,846 67,824 3,634,890
Series M Units 613,846 228,361 – 191,748 650,459 677,042 170,200 30 233,426 613,846
Scotia Private U.S. Mid Cap Value Pool
Pinnacle Series Units 818,376 154,328 83,643 141,055 915,292 861,149 233,691 5,644 282,108 818,376
Series F Units 9,964 8,856 1,375 3,886 16,309 6,515 3,512 35 98 9,964
Series I Units 10,607 8,307 350 10,607 8,657 13,129 161 77 2,760 10,607
Series M Units 1,175,086 403,972 116,179 394,852 1,300,385 1,152,768 335,375 6,495 319,552 1,175,086
Scotia Private U.S. Value Pool
Pinnacle Series Units 4,446,873 847,163 460,993 700,979 5,054,050 4,078,416 1,054,223 123,410 809,176 4,446,873
Series F Units 41,087 11,143 2,003 24,784 29,449 13,167 28,371 782 1,233 41,087
Series I Units 23,742,449 4,126,158 1,259,696 15,631,913 13,496,390 18,530,517 6,471,934 701,431 1,961,433 23,742,449
Pinnacle Portfolios
Pinnacle Balanced Portfolio
Series A Units 6,226,172 928,031 28,601 909,162 6,273,642 5,597,961 1,526,772 29,031 927,592 6,226,172
Pinnacle Growth Portfolio
Series A Units 945,071 102,665 – 147,082 900,654 695,476 414,091 – 164,496 945,071
Pinnacle Income Portfolio
Series A Units 1,186,415 123,754 10,333 238,944 1,081,558 1,313,218 102,619 17,693 247,115 1,186,415
(i) Included in units redeemed are redemptions related to payments of the Pinnacle Program Fee, where applicable.
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.
8. 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 tounitholders but will reduce the adjusted cost base of the unitsheld.
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, 2014.
Scotia Private PoolsYear ofexpiry
Non-CapitalLoss $
CapitalLoss $
Scotia Private American Core-Plus Bond Pool – – 4,382,957
Scotia Private Canadian Growth Pool – – 43,364,317
Scotia Private Canadian Mid Cap Pool – – –
Scotia Private Canadian Small Cap Pool – – –
Scotia Private Canadian Value Pool – – 11,302,854
Scotia Private Emerging Markets Pool – – 9,489,586
Scotia Private Global Equity Pool – – 2,512,777
Scotia Private Global Real Estate Pool – – 22,085,312
Scotia Private High Yield Income Pool – – –
Scotia Private Income Pool – – 2,923,770
Scotia Private International Equity Pool – – 2,058,308
Scotia Private International Small to Mid Cap
Value Pool – – 22,459,045
Scotia Private Short Term Income Pool – – –
Scotia Private Strategic Balanced Pool – – 10,242,854
Scotia Private U.S. Large Cap Growth Pool – – 4,892,476
Scotia Private U.S. Mid Cap Growth Pool – – 31,552,634
Scotia Private U.S. Mid Cap Value Pool – – –
Scotia Private U.S. Value Pool – – –
Pinnacle Portfolios
Pinnacle Balanced Portfolio – – 764,960
Pinnacle Growth Portfolio 2030 204,326 1,294,211
2032 2,849 –
Pinnacle Income Portfolio – – –
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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.
9. 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 December 31, 2014 and 2013 are set out below.
Fund 2014 2013
Scotia Private American Core-Plus Bond Pool $ – $ –
Scotia Private Canadian Growth Pool 8,862 3,650
Scotia Private Canadian Mid Cap Pool 4,553 –
Scotia Private Canadian Small Cap Pool 65,445 46,221
Scotia Private Canadian Value Pool – –
Scotia Private Emerging Markets Pool 130,340 65,340
Scotia Private Global Equity Pool 24,104 62,981
Scotia Private Global Real Estate Pool 36,512 40,197
Scotia Private High Yield Income Pool – –
Scotia Private Income Pool – –
Scotia Private International Equity Pool 18,532 15,060
Scotia Private International Small to Mid Cap Value Pool 22,696 22,869
Scotia Private Short Term Income Pool – –
Scotia Private Strategic Balanced Pool – –
Scotia Private U.S. Large Cap Growth Pool – –
Scotia Private U.S. Mid Cap Growth Pool 2,265 23,577
Scotia Private U.S. Mid Cap Value Pool 8,779 5,012
Scotia Private U.S. Value Pool 53,147 50,854
For client brokerage commissions paid to related parties,please refer to Note 11(c) for more information.
10. 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 market
value 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 December 31,2014, December 31, 2013 and January 1, 2013 are as follows:
As at December 31, 2014
FundsMarket value ofsecurities on loan
Market value ofcollateral received
Scotia Private American Core-Plus Bond
Pool $31,973,802 $34,012,716
Scotia Private Canadian Growth Pool 12,052,136 12,736,364
Scotia Private Canadian Mid Cap Pool 3,069,705 3,240,715
Scotia Private Canadian Small Cap Pool 52,744,395 55,839,710
Scotia Private Canadian Value Pool 2,593,838 2,741,761
Scotia Private Emerging Markets Pool 3,432,385 3,628,332
Scotia Private Global Real Estate Pool 48,156 50,967
Scotia Private Income Pool 32,651,592 34,302,804
Scotia Private International Equity Pool 2,881,865 3,038,915
Scotia Private International Small to
Mid Cap Value Pool 153,232 161,632
Scotia Private Strategic Balanced Pool 6,773,267 7,153,999
Scotia Private U.S. Mid Cap Growth
Pool 398,515 423,927
Scotia Private U.S. Mid Cap Value Pool 447,175 475,690
Scotia Private U.S. Value Pool 9,523,636 10,066,879
As at December 31, 2013
FundsMarket value ofsecurities on loan
Market value ofcollateral received
Scotia Private American Core-Plus Bond
Pool $11,951,233 $12,561,784
Scotia Private Canadian Growth Pool 12,759,035 13,384,756
Scotia Private Canadian Mid Cap Pool 4,756,043 4,980,189
Scotia Private Canadian Small Cap Pool 69,479,168 72,820,203
Scotia Private Canadian Value Pool 1,416,936 1,480,094
Scotia Private Emerging Markets Pool 6,328,447 6,602,530
Scotia Private Global Real Estate Pool 4,028,919 4,210,871
Scotia Private High Yield Income Pool 58,535,593 61,472,698
Scotia Private Income Pool 56,409,222 59,133,241
Scotia Private International Equity Pool 8,384,667 8,755,047
Scotia Private International Small to
Mid Cap Value Pool 335,735 353,631
Scotia Private Strategic Balanced Pool 5,768,399 6,058,302
Scotia Private U.S. Large Cap Growth
Pool 71,795 74,677
Scotia Private U.S. Mid Cap Growth
Pool 3,852,806 4,025,375
Scotia Private U.S. Mid Cap Value Pool 6,325 6,618
Scotia Private U.S. Value Pool 3,119,027 3,265,089
162
As at January 1, 2013
FundsMarket value ofsecurities on loan
Market value ofcollateral received
Scotia Private American Core-Plus Bond
Pool $ 9,110,358 $ 9,570,772
Scotia Private Canadian Growth Pool 7,658,388 8,221,123
Scotia Private Canadian Mid Cap Pool 6,939,494 7,358,939
Scotia Private Canadian Small Cap Pool 16,522,840 17,718,369
Scotia Private Canadian Value Pool 1,348,020 1,444,471
Scotia Private Emerging Markets Pool 2,304,905 2,535,133
Scotia Private Global Real Estate Pool 4,551,135 4,747,190
Scotia Private High Yield Income Pool 47,876,776 50,831,198
Scotia Private Income Pool 73,982,228 77,869,418
Scotia Private International Small to
Mid Cap Value Pool 394,115 428,983
Scotia Private Strategic Balanced Pool 8,748,010 9,537,691
Scotia Private U.S. Large Cap Growth
Pool 279,857 309,623
Scotia Private U.S. Mid Cap Growth
Pool 307,589 337,073
Scotia Private U.S. Value Pool 12,155,040 12,728,331
11. 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 Statements of ComprehensiveIncome. Administration service expenses are disclosed inNote 6.
(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.
(c) The Funds may also invest in securities issued byScotiabank and execute portfolio transactions through SCI.The brokerage fees paid to related parties for the years endedDecember 31, 2014 and 2013 are as follows:
2014 2013
Funds Scotia Capital Inc.
Scotia Private Canadian Growth Pool $15,484 $11,789
Scotia Private Canadian Mid Cap Pool 5,175 5,794
Scotia Private Canadian Small Cap Pool 49,499 78,096
Scotia Private Canadian Value Pool 8,109 10,608
Scotia Private Strategic Balanced Pool 899 631
Scotia Private U.S. Large Cap Growth Pool – 50
(d) As at December 31, 2014, December 31, 2013 andJanuary 1, 2013, certain Funds invested in Funds managed bythe Manager. The holdings are disclosed in the Schedule ofInvestment Portfolio, as applicable.
(e) 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 the
Funds is reflected in the Statements of Comprehensive Incomein “Interest for distribution purposes” in the Income section.
12. Transition to IFRSThe effect of each of the Funds’ transition to IFRS is summarized inthis 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 cashor another financial asset be classified as financial liability.The Funds’ units do not meet the criteria in IAS 32 forclassification as equity based on this criteria and therefore,have been reclassified as financial liabilities on transition toIFRS.
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.
163
13. Future Accounting StandardsThe final version of IFRS 9, Financial Instruments, was issuedby the IASB in July 2014 and will replace IAS 39 FinancialInstruments: Recognition and Measurement. IFRS 9 introducesa model for classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantiallyreformed approach to hedge accounting. The new single,principle based approach for determining the classification offinancial assets is driven by cash flow characteristics and thebusiness model in which an asset is held. The new model alsoresults in a single impairment model being applied to allfinancial instruments, which will require more timelyrecognition of expected credit losses. It also includes changesin respect of own credit risk in measuring liabilities elected tobe measured at fair value, so that gains caused by thedeterioration of an entity’s own credit risk on such liabilitiesare no longer recognized in profit or loss. IFRS 9 is effective forannual periods beginning on or after January 1, 2018, howeveris available for early adoption. In addition, the own creditchanges can be early applied in isolation without otherwisechanging the accounting for financial instruments The Fundsare in the process of assessing the impact of IFRS 9 and havenot yet determined when they will adopt the new standard.
164
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 International Financial Reporting Standards (“IFRS”) 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.
PricewaterhouseCoopers LLP is the external auditor of the Funds, appointed by theTrustee of the Funds. The auditor of the Funds has audited the financial statementsin accordance with the Canadian generally accepted auditing standards to enable it toexpress to the securityholders its opinion on the financial statements. The auditor’sreport is set out herein.
Jordy ChilcottCo-President1832 Asset Management L.P.
Michel MartilChief Financial Officer1832 Asset Management L.P.
March 6, 2015
165
Independent Auditor’s Report
To the Unitholders and Trustee of:Scotia Private Short Term Income PoolScotia Private Income PoolScotia Private High Yield Income PoolScotia Private American Core-Plus Bond PoolScotia Private Strategic Balanced PoolScotia Private Canadian Value PoolScotia Private Canadian Mid Cap PoolScotia Private Canadian Growth PoolScotia Private Canadian Small Cap PoolScotia Private U.S. Value PoolScotia Private U.S. Large Cap Growth PoolScotia Private U.S. Mid Cap Value PoolScotia Private U.S. Mid 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 PoolPinnacle Income PortfolioPinnacle Balanced PortfolioPinnacle Growth Portfolio(collectively the Funds)
We have audited the accompanying financial statements of eachof the Funds, which comprise the statements of financialposition as at December 31, 2014 and 2013 and January 1, 2013and the statements of comprehensive income, changes in netassets attributable to holders of redeemable units and cashflows for the years ended December 31, 2014 and 2013, and therelated notes, which comprise a summary of significantaccounting policies and other explanatory information.
Management’s responsibility for the financialstatements
Management is responsible for the preparation and fairpresentation of these financial statements in accordance withInternational Financial Reporting Standards, and for suchinternal control as management determines is necessary toenable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financialstatements of each of the Funds based on our audits. Weconducted our audits in accordance with Canadian generallyaccepted auditing standards. Those standards require that wecomply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.
An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of materialmisstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparationand fair presentation of the financial statements in order todesign audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinionon the effectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained in each ofour audits is sufficient and appropriate to provide a basis forour audit opinion.
Opinion
In our opinion, the financial statements of each of the Fundspresent fairly, in all material respects, the financial position ofeach of the Funds as at December 31, 2014 and 2013 andJanuary 1, 2013 and the financial performance and the cashflows of each of the Funds for the years ended December 31,2014 and 2013 in accordance with International FinancialReporting Standards.
Chartered Professional Accountants,Licensed Public AccountantsToronto, OntarioMarch 9, 2015
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SM54D 909811E-1 (03/15)
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.