Unaudited Interim Financial Statements

UNAUDITED INTERIM FINANCIAL STATEMENTS

JUNE 30, 2021

FLEXIFONDS CONSERVATIVE FUND FLEXIFONDS BALANCED FUND FLEXIFONDS GROWTH FUND FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021

TABLE OF CONTENTS

FLEXIFONDS CONSERVATIVE Fund 1

FLEXIFONDS BALANCED Fund 10

FLEXIFONDS GROWTH Fund 19

Notes to the Financial Statements 28

FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 1

STATEMENTS OF FINANCIAL POSITION

AS AT JUNE 30, AS AT DECEMBER 31, 2021 2020

(in Canadian dollars) Notes $ $

ASSETS

Current assets

Cash 311,541 535,293

Investments 4 69,228,586 55,938,843

Subscriptions receivable 324,954 38,707

Accounts receivable for investments sold 269,988 229,046

Financial instruments related to repurchase transactions 1,890,893 5,182,991

Interest, dividends and other assets receivable 246,638 178,684

72 272 600 62,103,564

LIABILITIES

Current liabilities Redemptions payable 8,794 -

Accounts payable for investments purchased 416,688 620,406

Commitments related to repurchase transactions 1,890,893 5,182,991

Accrued expenses 98,609 34,193

2,414,984 5,837,590

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 69,857,616 56,265,974

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT 5 11.03 10.94

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

Approved on behalf of the Board of Directors of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) Manager of the FlexiFonds funds

Claude Séguin and Janie C. Béïque, Directors

FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 2

STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020

(in Canadian dollars) Notes $ $

REVENUES

Interest 353,754 201,339

Dividends 57,477 59,821

Revenues from securities lending activities 951 4,487

Foreign exchange gain (loss) on cash 172 2

Changes in fair value

Net realized gains (losses) on investments (100,637) 140,547

Net unrealized gains (losses) on investments 979,483 369,930

1,291,200 776,126

EXPENSES

Management fees 6 395,721 191,156

Administration fees 6 63,599 31,064

Independent Review Committee fees 14,668 13,403

473,988 235,623

Expenses absorbed by the Manager 6 (14,668) (13,403)

459,320 222,220

Withholding taxes 5,460 -

Transaction costs 2,578 1,205

467,358 223,425

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 823,842 552,701

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

PER UNIT 5 0.14 0.19

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

FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 3

STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020 (in Canadian dollars) $ $ NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS AT BEGINNING 56,265,974 23,510,725

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 823,842 552,701

REDEEMABLE UNIT TRANSACTIONS Issuances 17,615,385 19,030,076 Reinvested distributions - 25,006 Redemptions (4,847,585) (733,679) 12,767,800 18,321,403

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Net investment income - (25,006)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS AT END 69,857 616 42,359,823

NUMBER OF REDEEMABLE UNITS OUTSTANDING Number of redeemable units at beginning 5,144,839 2,278,422 Issuances 1,636,737 1,807,416 Reinvested distributions - 2,339 Redemptions (449,676) (69,571) Number of redeemable units at end 6,331,900 4,018,606

Weighted average number of units outstanding 5,746,823 2,856,480

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

FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 4

STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020 (in Canadian dollars) $ $

OPERATING ACTIVITIES Increase (decrease) in net assets attributable to holders of redeemable units 823,842 552,701

Non-cash items Foreign exchange (gain) loss on cash (172) (2) Changes in fair value (878,846) (510,477)

Changes in non-cash items Accounts receivable for investments sold (40,942) 211,106 Interest, dividends and other assets receivable (67,954) (12,103) Accounts payable for investments purchased (203,718) (233,342) Accrued expenses 64,416 25,070

Proceeds from sale and maturity of investments 9,900,128 5,220,818 Purchases of investments (22,311,025) (23,489,787) (12,714,271) (18,236,016) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 17,329,138 19,030,076 Amounts paid on redemption of redeemable units (4,838,791) (733,679) 12,490,347 18,296,397

Impact of exchange rate changes on cash denominated in foreign currencies 172 2

INCREASE (DECREASE) IN CASH (223,752) 60,383 CASH AT BEGINNING 535,293 69,649 CASH AT END 311,541 130,032 Supplemental information (amounts included in operating activities) Interest received 300,053 166,324 Dividends received, net of withholding taxes 51,019 82,753

The accompanying notes are an integral part of these financial statements. FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 5

SCHEDULE OF INVESTMENT PORTFOLIO AS AT JUNE 30, 2021 FAIR Number of Shares / Cost Fair Value Par Value $ $ Québec (70.4%) Equities (34.9%) Fonds de solidarite FTQ, Class C Shares, Series 1 (29.9%) 392,313 17,568,768 20,874,975 Québec-based Companies1 (5.0%) Air Canada 3,119 69,437 79,533 Alimentation Couche-Tard, Class B 5,673 233,402 258,405 Bank of Montreal 1,219 106,827 154,886 BCE 3,317 193,441 202,768 Bombardier, Class B 38,387 36,271 44,913 Boralex, Class A 1,377 40,142 51,982 BRP 930 52,627 90,210 CAE 2,784 77,444 106,293 Canadian National Railway Company 1,862 248,713 243,531 Cascades 2,040 29,430 31,130 CGI, Class A 1,523 139,410 171,170 Cogeco Communications 438 42,355 53,090 Dollarama 2,748 123,162 155,922 Gildan Activewear 1,372 46,095 62,755 iA Financial Group 1,387 69,902 93,609 Innergex Renewable Energy 2,068 42,638 44,565 Laurentian Bank of Canada 907 39,524 39,627 Lightspeed POS 1,496 61,794 155,210 Metro 2,941 167,667 174,784 Molson Coors Beverage Company, Class B 620 39,205 41,264 National Bank of Canada 3,328 213,861 308,739 Power Corporation of Canada 4,189 111,804 164,125 Québecor, Class B 3,884 122,728 128,405 Richelieu Hardware 1,023 27,847 41,043 Royal Bank of Canada 2,041 202,060 256,329 Saputo Group 2,256 83,035 83,404 SNC-Lavalin Group 1,129 26,296 36,410 TFI International 624 32,244 70,618 Transcontinental, Class A 1,846 29,820 42,975 WSP Global 524 46,143 75,823 2,755,324 3,463,518 Total Québec Equities 20,324,092 24,338,493 Bonds (35.5%) Governments of Québec (35.5%) Province of Québec 2.50%, 2026-09-01 3,530,000 3,760,356 3,739,830 2.75%, 2027-09-01 3,780,000 4,094,046 4,065,384 2.75%, 2028-09-01 3,700,000 4,028,595 3,986,469 2.30%, 2029-09-01 5,045,000 5,332,015 5,255,676 6.00%, 2029-10-01 595,000 813,762 786,021 1.90%, 2030-09-01 6,605,000 6,846,980 6,615,005 2.10%, 2031-05-27 175,000 174,501 177,788 1.50%, 2031-09-01 200,000 189,335 190,960 Total Québec Bonds 25,239,590 24,817,133 Total Québec Securities 45,563,682 49,155,626

Canada (19.2%) Bonds (18.9%) Government of Canada and its Crown Corporations (18.9%) Government of Canada 1.00%, 2027-06-01 875,000 874,102 870,731 2.00%, 2028-06-01 440,000 484,946 464,671 2.25%, 2029-06-01 805,000 904,587 866,716 1.25%, 2030-06-01 2,185,000 2,297,392 2,169,228 0.50%, 2030-12-01 1,995,000 1,895,076 1,839,440 1.50%, 2031-06-01 1,075,000 1,073,978 1,081,178 Canada Housing Trust 1.90%, 2026-09-15 885,000 917,862 913,019 2.35%, 2027-06-15 835,000 895,921 881,841 2.65%, 2028-03-15 1,315,000 1,445,930 1,415,055 2.10%, 2029-09-15 705,000 742,138 730,728 1.75%, 2030-06-15 980,000 1,031,477 983,519 1.10%, 2031-03-15 705,000 653,908 663,135 1.90%, 2031-03-15 300,000 298,776 303,519 Total Canadian Bonds 13,516,093 13,182,780 Money Market Securities (0.3%) Province of Nova Scotia Treasury Bills 2021-07-06 200,000 199,996 199,996 Total Canadian Securities 13,716,089 13,382,776

Equities of Québec-based companies comprise shares included in the IQ-30 Index established by the Institut de recherche en économie contemporaine (“IRÉC”). FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 6

SCHEDULE OF INVESTMENT PORTFOLIO AS AT JUNE 30, 2021 FAIR Number of Shares / Cost Fair Value Par Value $ $ United States (5.8%) Equities (5.8%) Akamai Technologies 814 101,365 117,653 Alphabet, Class C 43 95,368 133,594 Amphenol, Class A 1,074 79,055 91,076 Ball 1,490 159,971 149,644 Becton, Dickinson and Company 540 168,197 162,788 Booking Holdings 40 101,494 108,494 Cognizant Technology Solutions, Class A 1,623 143,419 139,342 Cooper Companies 174 71,759 85,472 CVS Health 1,436 118,334 148,529 Discovery, Class A 2,504 75,939 95,229 Discovery, Class C 1,355 47,627 48,676 Elanco Animal Health 3,895 147,124 167,492 Fiserv 1,466 192,573 194,246 Fortive 1,151 94,983 99,504 Global Payments 580 136,916 134,835 Henry Schein 908 78,064 83,505 Honeywell International 466 104,608 126,708 International Flavors & Fragrances 752 123,420 139,268 Microsoft 668 199,282 224,320 Middleby 994 135,750 213,484 Nike, Class B 784 119,486 150,141 PepsiCo 500 90,744 91,836 Thermo Fisher Scientific 365 208,003 228,249 United Parcel Service, Class B 736 158,341 189,741 UnitedHealth Group 462 192,287 229,330 Visa, Class A 743 206,546 215,354 Wabtec 1,615 147,202 164,761 Walt Disney Company 625 112,692 136,178 Total U.S. Equities 3,610,549 4,069,449

International (3.7%) Equities (3.7%) Air Water 6,500 121,909 123,876 Coca-Cola HBC 2,268 80,156 101,659 Compagnie Financière Richemont 707 65,212 106,039 Danone 974 82,735 84,996 Diageo 2,044 90,418 121,305 Essilor International 333 58,059 76,180 Fresenius SE & Co. 2,833 168,177 183,199 Grifols 4,065 139,144 136,468 Heineken 904 109,322 135,798 Kerry Group, Class A 491 84,120 85,016 Linde 471 155,675 168,471 LVMH Moët Hennessy Louis Vuitton 147 95,231 142,886 MTU Aero Engines Holdings 325 80,716 99,792 Nestlé 644 99,859 99,411 Nidec 1,300 142,407 186,757 Pernod Ricard 348 78,008 95,754 Prudential 5,521 117,855 130,030 Reckitt Benckiser Group 754 93,729 82,708 Reed Elsevier 3,009 88,810 99,014 SAP 713 143,395 124,545 Sodexo 611 58,613 70,679 STERIS 414 87,508 105,872 Terumo 1,200 65,289 60,280 Total International Equities 2,306,347 2,620,735

Total Investments (99.1%) 65,196,667 69,228,586

Cash and other net assets components (0.9%) 629,030

Net Assets (100.0%) 69,857,616

As at June 30, 2021, the fair value of securities sold under repurchase agreements was $1,854,483. These securities are bonds. These transactions were conducted between June 25, 2021 and June 28, 2021 and they mature between July 9, 2021 and July 12, 2021. The fair value of collateral received, which is mainly comprised of cash, was $1,892,409. The repurchase price payable is $1,890,893.

The accompanying notes are an integral part of these financial statements. FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 7

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

INVESTMENT OBJECTIVES

The assets of the FlexiFonds Conservative Fund (the “Fund”) are primarily invested in government bonds, Class C shares of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the “Class C shares of the Fonds de solidarité FTQ”) and, to a lesser extent, in global shares and shares of Québec-based companies, mainly those with a large market capitalization listed on a stock exchange. The Fund aims to provide income and modest long-term capital growth while contributing to the stimulation of Québec’s economy by prioritizing assets related to Québec’s economy. The maximum exposure to foreign investments is 15%.

FINANCIAL INSTRUMENTS RISKS

As a portion of the Fund is invested in Class C shares of the Fonds de solidarité FTQ, the Fund is indirectly exposed to the concentration, liquidity, credit and market risks arising from the financial assets and liabilities held by this financial instrument. Only the direct exposure to risks arising from financial instruments held by the Fund is disclosed.

CONCENTRATION RISK

The following table summarizes the Fund’s direct concentration risk, as a percentage of the Fund’s net assets attributable to holders of redeemable units:

(in %) June 30, 2021 December 31, 2020 Québec Equities Class C shares of the Fonds de solidarité FTQ 29.9 30.0 Equities of Québec-based companies 5.0 5.0 Bonds of the Government of Québec 35.5 34.8 Canada Bonds of the Government of Canada and its crown corporations 18.9 19.9 Money market securities 0.3 United States Equities 5.8 5.8 International Equities 3.7 3.9 Cash and other net assets components 0.9 0.6

CREDIT RISK

The following table presents the fair value of bonds directly held by the Fund by issuer credit rating:

(in $) June 30, 2021 December 31, 2020 AAA 13,182,780 11,211,566 AA 24,817,133 19,603,205 37,999,913 30,814,771

Credit ratings were obtained from recognized rating agencies.

FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 8

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

CURRENCY RISK

The following table presents, in Canadian dollars, the foreign currencies to which the Fund is directly and significantly exposed: June 30, 2021 December 31, 2020 (in $ and in %) Fair value % of net assets Fair value % of net assets U.S. dollar 4,069,449 5.8 3,256,362 5.8 Other 2,620,735 3.7 2,208,686 3.9 6,690,184 9.5 5,465,048 9.7

As at June 30, 2021 if the Canadian dollar had appreciated or depreciated by 10% against any other foreign currencies, with all other variables held constant, the Fund’s net assets attributable to holders of redeemable units and comprehensive income would have decreased or increased by approximately $669,018 (December 31, 2020: $546,505).

INTEREST RATE RISK

The following table presents the bonds’ direct exposure to interest rate risk, based on fair value, categorized by the earlier of contractual re-pricing or maturity dates as well as the impact of a 1% increase or decrease in market interest rates, with all other variables held constant, on the Fund’s net assets attributable to holders of redeemable units and comprehensive income.

(in $) June 30, 2021 December 31, 2020 5 to 10 years 37,808,953 30,814,771 10 to 15 years 190,960 37,999,913 30,814,771 1% increase or decrease in market interest rates 2,697,775 2,232,364

PRICE RISK

The following table presents the Fund’s direct exposure to price risk arising from holding securities listed on stock exchanges as well as the impact of a 10% increase or decrease in listed share prices, with all other variables held constant, on the Fund’s net assets attributable to holders of redeemable units and comprehensive income.

(in $) June 30, 2021 December 31, 2020 Fair value 10,153,702 8,258,372 10% increase or decrease in listed share prices 1,015,370 825,837

LIQUIDITY RISK

As at June 30, 2021 and December 31, 2020, the Fund’s investments comprise mainly financial instruments that are traded in an active market, such as equities and bonds, and can usually be readily disposed of. The Fund’s investments also comprise Class C shares of the Fonds de solidarité FTQ. The Fonds de solidarité FTQ has a liquidity risk management policy to limit the risks of being unable to satisfy the requests to redeem Class C shares of the Fonds de solidarité FTQ submitted by the Fund.

FLEXIFONDS CONSERVATIVE FUND Unaudited Interim Financial Statements as at June 30, 2021 9

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

FAIR VALUE HIERARCHY TABLE

The following table presents investments by fair value hierarchy level:

(in $) Level 1 Level 2 Total June 30, 2021 Financial assets at fair value through profit or loss (“FVTPL”) Equities 10,153,702 10,153,702 Class C shares of the Fonds de solidarité FTQ 20,874,975 20 874,975 Bonds 37,999,913 37,999,913 Money market securities 199,996 199,996 10,153,702 59,074,884 69,228,586 December 31, 2020 Financial assets at fair value through profit or loss (“FVTPL”) Equities 8,258,372 8,258,372 Class C shares of the Fonds de solidarité FTQ 16,865,700 16,865,700 Bonds 30,814,771 30,814,771 8,258,372 47,680,471 55,938,843

During the six-month period ended June 30, 2021 and the year ended December 31, 2020 there were no transfers of financial instruments between levels.

SECURITIES LENDING

The following table presents the fair value of securities loaned in securities lending activities and collateral received:

(in $) June 30, 2021 December 31, 2020 Fair value of securities loaned 2,652,561 671,099 Fair value of securities received as collateral 2,705,612 684,521

Reconciliation of revenues from securities lending activities

The following table shows a reconciliation of the total income generated from securities lending activities and the revenue disclosed in the Fund’s Statement of Comprehensive Income:

June 30, 2021 June 30, 2020 $ % $ % Total revenues 1,585 100 7,478 100 Net revenues received by the Fund 951 60 4,487 60 Net revenues received by Desjardins Trust Inc. 634 40 2,991 40

FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 10

STATEMENTS OF FINANCIAL POSITION

AS AT JUNE 30, AS AT DECEMBER 31, 2021 2020

(in Canadian dollars) Notes $ $

ASSETS

Current assets

Cash 1,582,873 763,975

Investments 4 70,975,436 39,823,041

Subscriptions receivable 1,037,513 69,331

Accounts receivable for investments sold 1,934,329 1,010,592

Financial instruments related to repurchase transactions 1,078,522 4,114,915

Interest, dividends and other assets receivable 216,023 112,696

76,824,696 45,894,550

LIABILITIES

Current liabilities

Redemptions payable 10,744 -

Accounts payable for investments purchased 2,687,229 1,732,710

Commitments related to repurchase transactions 1,078,522 4,114,915

Accrued expenses 97,937 23,992

3,874,432 5,871,617

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 72,950,264 40,022,933

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT 5 11.33 11.07

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

Approved on behalf of the Board of Directors of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) Manager of the FlexiFonds funds

Claude Séguin and Janie C. Béïque, Directors

FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 11

STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020

(in Canadian dollars) Notes $ $

REVENUES

Interest 243,352 87,062

Dividends 113,900 69,386

Revenues from securities lending activities 806 2,286

Foreign exchange gain (loss) on cash (3,750) 3

Changes in fair value

Net realized gains (losses) on investments (108,621) 76,442

Net unrealized gains (losses) on investments 2,028,537 (49,123)

2,274,224 186,056

EXPENSES

Management fees 6 354,915 112,256

Administration fees 6 57,040 18,447

Independent Review Committee fees 12,922 7,884

424,877 138,587

Expenses absorbed by the Manager 6 (12,922) (7,884)

411,955 130,703

Withholding taxes 10,711 -

Transaction costs 12,224 1,307

434,890 132,010

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1,839,334 54,046

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

PER UNIT 5 0.36 0.03

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

FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 12

STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020 (in Canadian dollars) $ $

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS AT BEGINNING 40,022,933 14,329,575

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1,839,334 54,046

REDEEMABLE UNIT TRANSACTIONS Issuances 33,977,385 11,266,815 Reinvested distributions - 21,251 Redemptions (2,889,388) (812,933) 31,087,997 10,475,133

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Net investment income - (21,251)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS AT END 72,950,264 24,837,503

NUMBER OF REDEEMABLE UNITS OUTSTANDING Number of redeemable units at beginning 3,616,615 1,369,459 Issuances 3,087,328 1,077,642 Reinvested distributions - 2,014 Redemptions (262,651) (77,973) Number of redeemable units at end 6,441,292 2,371,142

Weighted average number of units outstanding 5,041,610 1,705,333

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

FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 13

STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020 (in Canadian dollars) $ $

OPERATING ACTIVITIES Increase (decrease) in net assets attributable to holders of redeemable units 1,839,334 54,046

Non-cash items Foreign exchange (gain) loss on cash 3,750 (3) Changes in fair value (1,919,916) (27,319)

Changes in non-cash items Accounts receivable for investments sold (923,737) (349,990) Interest, dividends and other assets receivable (103,327) 14,181 Accounts payable for investments purchased 954,519 272,684 Accrued expenses 73,945 13,266

Proceeds from sale and maturity of investments 12,461,378 2,966,064 Purchases of investments (41,693,857) (13,091,901) (29,307,911) (10,148,972) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 33,009,203 11,266,815 Amounts paid on redemption of redeemable units (2,878,644) (812,933) 30,130,559 10,453,882

Impact of exchange rate changes on cash denominated in foreign currencies (3,750) 3

INCREASE (DECREASE) IN CASH 818,898 304,913 CASH AT BEGINNING 763,975 91,421 CASH AT END 1,582,873 396,334 Supplemental information (amounts included in operating activities) Interest received 162,197 73,412 Dividends received, net of withholding taxes 92,804 97,087

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

FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 14

SCHEDULE OF INVESTMENT PORTFOLIO AS AT JUNE 30, 2021

Number of Shares / Cost Fair Value Par Value $ $ Québec (69.4%) Equities (39.4%) Fonds de solidarite FTQ, Class C Shares, Series 1 (29.6%) 406,060 18,909,525 21,606,453 Québec-based Companies1 (9.8%) Air Canada 6,459 150,998 164,704 Alimentation Couche-Tard, Class B 11,748 489,748 535,121 Bank of Montreal 2,524 244,830 320,699 BCE 6,873 398,746 420,146 Bombardier, Class B 79,493 75,918 93,007 Boralex, Class A 2,852 98,941 107,663 BRP 1,925 139,589 186,725 CAE 5,764 178,598 220,070 Canadian National Railway Company 3,855 520,647 504,195 Cascades 4,225 61,646 64,474 CGI, Class A 3,154 305,493 354,478 Cogeco Communications 907 93,445 109,937 Dollarama 5,690 275,522 322,851 Gildan Activewear 2,840 102,776 129,902 iA Financial Group 2,872 161,770 193,831 Innergex Renewable Energy 4,284 94,268 92,320 Laurentian Bank of Canada 1,878 81,822 82,050 Lightspeed POS 3,097 184,380 321,314 Metro 6,091 348,442 361,988 Molson Coors Beverage Company, Class B 1,284 81,315 85,456 National Bank of Canada 6,892 489,891 639,371 Power Corporation of Canada 8,675 255,021 339,886 Québecor, Class B 8,043 257,775 265,902 Richelieu Hardware 2,117 68,142 84,934 Royal Bank of Canada 4,227 444,102 530,869 Saputo Group 4,671 173,239 172,687 SNC-Lavalin Group 2,338 58,226 75,400 TFI International 1,292 88,224 146,216 Transcontinental, Class A 3,822 70,746 88,976 WSP Global 1,085 111,300 157,000 6,105,560 7,172,172 Total Québec Equities 25,015,085 28,778,625 Bonds (29.7%) Governments of Québec (29.7%) Province of Québec 2.50%, 2026-09-01 3,060,000 3,271,003 3,241,892 2.75%, 2027-09-01 3,195,000 3,480,745 3,436,217 2.75%, 2028-09-01 3,125,000 3,413,976 3,366,950 2.30%, 2029-09-01 4,555,000 4,818,426 4,745,214 6.00%, 2029-10-01 305,000 414,473 402,918 1.90%, 2030-09-01 5,950,000 6,080,872 5,959,013 2.10%, 2031-05-27 150,000 149,572 152,390 1.50%, 2031-09-01 335,000 318,635 319,858 Total Québec Bonds 21,947,702 21,624,452 Money Market Securities (0.3%) Province of Québec Treasury Bills 2021-07-30 250,000 249,972 249,972 Total Québec Securities 47,212,759 50,653,049

Canada (9.6%) Bonds (9.6%) Government of Canada and its Crown Corporations (9.6%) Government of Canada 1.00%, 2027-06-01 320,000 323,647 318,439 2.00%, 2028-06-01 250,000 274,786 264,017 2.25%, 2029-06-01 385,000 422,982 414,516 1.25%, 2030-06-01 865,000 906,982 858,756 0.50%, 2030-12-01 1,325,000 1,245,431 1,221,683 1.50%, 2031-06-01 520,000 519,125 522,988 Canada Housing Trust 1.90%, 2026-09-15 635,000 659,973 655,104 2.35%, 2027-06-15 600,000 642,197 633,658 2.65%, 2028-03-15 825,000 904,152 887,772 2.10%, 2029-09-15 365,000 386,750 378,320 1.75%, 2030-06-15 555,000 571,686 556,993 1.10%, 2031-03-15 125,000 116,032 117,577 1.90%, 2031-03-15 170,000 169,306 171,994 Total Canadian Securities 7,143,049 7,001,817

1.Equities of Québec-based companies comprise shares included in the IQ-30 Index established by the Institut de recherche en économie contemporaine (“IRÉC”). FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 15

SCHEDULE OF INVESTMENT PORTFOLIO AS AT JUNE 30, 2021

Number of Shares / Cost Fair Value Par Value $ $ United States (11.1%) Equities (11.1%) Akamai Technologies 1,639 206,354 236,897 Alphabet, Class C 84 198,362 260,974 Amphenol, Class A 2,133 164,751 180,881 Ball 2,972 324,668 298,485 Becton, Dickinson and Company 1,069 333,236 322,259 Booking Holdings 77 203,401 208,851 Cognizant Technology Solutions, Class A 3,230 294,226 277,311 Cooper Companies 344 150,599 168,978 CVS Health 2,850 247,646 294,782 Discovery, Class A 5,043 194,757 191,790 Discovery, Class C 2,696 94,729 96,850 Elanco Animal Health 7,755 297,526 333,478 Fiserv 2,917 398,020 386,505 Fortive 2,288 193,421 197,797 Global Payments 1,155 279,894 268,508 Henry Schein 1,806 156,773 166,090 Honeywell International 928 223,917 252,329 International Flavors & Fragrances 1,498 246,911 277,424 Microsoft 1,330 397,435 446,624 Middleby 1,976 311,287 424,392 Nike, Class B 1,560 251,094 298,749 PepsiCo 993 178,718 182,386 Thermo Fisher Scientific 725 421,953 453,372 United Parcel Service, Class B 1,464 318,989 377,419 UnitedHealth Group 913 394,525 453,200 Visa, Class A 1,475 406,449 427,519 Wabtec 3,214 301,548 327,889 Walt Disney Company 1,245 246,998 271,266 Total U.S. Equities 7,438,187 8,083,005

International (7.2%) Equities (7.2%) Air Water 12,900 252,796 245,847 Coca-Cola HBC 4,511 170,205 202,197 Compagnie Financière Richemont 1,404 147,231 210,578 Danone 1,938 165,223 169,120 Diageo 4,037 193,103 239,584 Essilor International 663 123,114 151,673 Fresenius SE & Co. 5,632 332,992 364,200 Grifols 8,102 279,143 271,996 Heineken 1,800 230,420 270,394 Kerry Group, Class A 980 166,671 169,686 Linde 935 312,185 334,439 LVMH Moët Hennessy Louis Vuitton 293 212,172 284,800 MTU Aero Engines Holdings 645 175,450 198,049 Nestlé 1,277 193,006 197,125 Nidec 2,700 350,378 387,881 Pernod Ricard 690 161,170 189,858 Prudential 10,992 250,016 258,883 Reckitt Benckiser Group 1,498 178,716 164,318 Reed Elsevier 5,994 182,231 197,237 SAP 1,423 265,925 248,566 Sodexo 1,213 126,605 140,317 STERIS 822 183,212 210,210 Terumo 2,600 135,829 130,607 Total International Equities 4,787,793 5,237,565

Total Investments (97.3%) 66,581,788 70,975,436

Cash and other net assets components (2.7%) 1,974,828

Net Assets (100.0%) 72,950,264

As at June 30, 2021, the fair value of securities sold under repurchase agreements was $1,056,859. These securities are bonds. These transactions were conducted June 25, 2021 and they mature July 9, 2021. The fair value of collateral received, which is mainly comprised of cash, was $1,078,490. The repurchase price payable is $1,078,522.

The accompanying notes are an integral part of these financial statements. FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 16

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

INVESTMENT OBJECTIVES

The assets of the FlexiFonds Balanced Fund (the “Fund”) are primarily invested in Class C Shares of the Fonds de solidarité FTQ, in government bonds and, to a lesser extent, in global shares and shares of Québec-based companies, mainly those with a large market capitalization listed on a stock exchange. The Fund aims to provide a balance between income and capital growth over the long term while contributing to the stimulation of Québec’s economy by prioritizing assets related to Québec’s economy. The maximum exposure to foreign investments is 25%.

FINANCIAL INSTRUMENTS RISKS

CONCENTRATION RISK

The following table summarizes the Fund’s direct concentration risk, as a percentage of the Fund’s net assets attributable to holders of redeemable units:

(in %) June 30, 2021 December 31, 2020 Québec Equities Class C shares of the Fonds de solidarité FTQ 29.6 30.0 Equities of Québec-based companies 9.8 9.9 Bonds of the Government of Québec 29.7 30.9 Money market securities 0.3 Canada Bonds of the Government of Canada and its crown corporations 9.6 10.4 United States Equities 11.1 10.9 International Equities 7.2 7.4 Cash and other net assets components 2.7 0.5

CREDIT RISK

The following table presents the fair value of bonds securities directly held by the Fund by issuer credit rating:

(in $) June 30, 2021 December 31, 2020 AAA 7,001,817 4,152,345 AA 21,624,452 12,357,063 28,626,269 16,509,408

Credit ratings were obtained from recognized rating agencies. FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 17

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

CURRENCY RISK

The following table presents, in Canadian dollars, the foreign currencies to which the Fund is directly and significantly exposed: June 30, 2021 December 31, 2020 (in $ and in %) Fair value % of net assets Fair value % of net assets U.S. dollar 8,083,005 11.1 4,387,958 10.9 Other 5,237,565 7.2 2,965,809 7.4 13,320,570 18.3 7,353,767 18.3

INTEREST RATE RISK

(in $) June 30, 2021 December 31, 2020 5 to 10 years 28,306,411 16,509,408 10 to 15 years 319,858 28,626,269 16,509,408 1% increase or decrease in market interest rates 2,022,181 1,187,240

PRICE RISK

(in $) June 30, 2021 December 31, 2020 Fair value 20,492,742 11,323,770 10% increase or decrease in listed share prices 2,049,274 1,132,377

LIQUIDITY RISK

FLEXIFONDS BALANCED FUND Unaudited Interim Financial Statements as at June 30, 2021 18

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

FAIR VALUE HIERARCHY TABLE

The following table presents investments by fair value hierarchy level:

(in $) Level 1 Level 2 Total June 30, 2021 Financial assets at fair value through profit or loss (“FVTPL”) Equities 20,492,742 20,492,742 Class C shares of the Fonds de solidarité FTQ 21,606,453 21,606,453 Bonds 28,626,269 28,626,269 Money market securities 249,972 249,972 20,492,742 50,482,694 70,975,436 December 31, 2020 Financial assets at fair value through profit or loss (“FVTPL”) Equities 11,323,770 11,323,770 Class C shares of the Fonds de solidarité FTQ 11,989,863 11,989,863 Bonds 16,509,408 16,509,408 11,323,770 28,499,271 39,823,041

During the six-month period ended June 30, 2021 and the year ended December 31, 2020 there were no transfers of financial instruments between levels.

SECURITIES LENDING

The following table presents the fair value of securities loaned in securities lending activities and collateral received:

(in $) June 30, 2021 December 31, 2020 Fair value of securities loaned 1,972,924 364,854 Fair value of securities received as collateral 2,012,383 372,151

Reconciliation of revenues from securities lending activities

The following table shows a reconciliation of the total income generated from securities lending activities and the revenue disclosed in the Fund’s Statement of Comprehensive Income:

June 30, 2021 June 30, 2020 $ % $ % Total revenues 1,343 100 3,810 100 Net revenues received by the Fund 806 60 2,286 60 Net revenues received by Desjardins Trust Inc. 537 40 1,524 40

FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 19

STATEMENTS OF FINANCIAL POSITION

AS AT JUNE 30, AS AT DECEMBER 31, 2021 2020

(in Canadian dollars) Notes $ $

ASSETS

Current assets

Cash 1,554,830 368,286

Investments 4 42,873,742 21,698,148

Subscriptions receivable 228,351 24,019

Accounts receivable for investments sold 815,877 238,895

Financial instruments related to repurchase transactions 1,853,265 1,777,180

Interest, dividends and other assets receivable 110,623 54,286

47,436,688 24,160,814

LIABILITIES

Current liabilities

Redemptions payable 4,890 -

Accounts payable for investments purchased 1,412,755 541,367

Commitments related to repurchase transactions 1,853,265 1,777,180

Accrued expenses 58,528 12,933

3,329,438 2,331,480

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 44,107,250 21,829,334

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT 5 11.70 11.22

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

Approved on behalf of the Board of Directors of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) Manager of the FlexiFonds funds

Claude Séguin and Janie C. Béïque, Directors

FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 20

STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020

(in Canadian dollars) Notes $ $

REVENUES

Interest 105,638 48,318

Dividends 98,295 68,148

Revenues from securities lending activities 436 1,320

Foreign exchange gain (loss) on cash (3,339) 3

Changes in fair value

Net realized gains (losses) on investments (45,721) 38,990

Net unrealized gains (losses) on investments 1,809,027 (255,145)

1,964,336 (98,366)

EXPENSES

Management fees 6 203,898 82,620

Administration fees 6 32,769 13,733

Independent Review Committee fees 7,334 4,993

244,001 101,346

Expenses absorbed by the Manager 6 (7,334) (4,993)

236,667 96,353

Withholding taxes 9,355 -

Transaction costs 11,724 939

257,746 97,292

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1,706,590 (195,658)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

PER UNIT 5 0.60 (0.15)

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

FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 21

STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020 (in Canadian dollars) $ $ NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS AT BEGINNING 21,829,334 12,150,848

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1,706,590 (195,658)

REDEEMABLE UNIT TRANSACTIONS Issuances 22,256,041 3,357,072 Reinvested distributions - 13,539 Redemptions (1,684,715) (401,350) 20,571,326 2,969,261

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Net investment income - (13,539)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS AT END 44,107,250 14,910,912

NUMBER OF REDEEMABLE UNITS OUTSTANDING Number of redeemable units at beginning 1,946,150 1,144,684 Issuances 1,973,370 320,980 Reinvested distributions - 1,292 Redemptions (149,431) (38,251) Number of redeemable units at end 3,770,089 1,428,705

Weighted average number of units outstanding 2,823,061 1,273,838

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

FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 22

STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30

2021 2020 (in Canadian dollars) $ $

OPERATING ACTIVITIES Increase (decrease) in net assets attributable to holders of redeemable units 1,706,590 (195,658)

Non-cash items Foreign exchange (gain) loss on cash 3,339 (3) Changes in fair value (1,763,306) 216,155

Changes in non-cash items Accounts receivable for investments sold (576,982) 10,493 Interest, dividends and other assets receivable (56,337) 37,847 Accounts payable for investments purchased 871,388 6,283 Accrued expenses 45,595 4,197

Proceeds from sale and maturity of investments 9,518,927 1,852,062 Purchases of investments (28,931,215) (4,842,862) (19,182,001) (2,911,486) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 22,051,709 3,357,072 Amounts paid on redemption of redeemable units (1,679,825) (401,350) 20,371,884 2,955,722

Impact of exchange rate changes on cash denominated in foreign currencies (3,339) 3

INCREASE (DECREASE) IN CASH 1,186,544 44,239 CASH AT BEGINNING 368,286 34,881 CASH AT END 1,554,830 79,120 Supplemental information (amounts included in operating activities) Interest received 66,052 49,168 Dividends received, net of withholding taxes 78,883 105,090

The accompanying notes are an integral part of these financial statements. FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 23

SCHEDULE OF INVESTMENT PORTFOLIO AS AT JUNE 30, 2021

Number of Shares / Cost Fair Value Par Value $ $ Québec (69.8%) Equities (44.8%) Fonds de solidarite FTQ, Class C Shares, Series 1 (29.9%) 247,800 11,409,827 13,185,438

Québec-based Companies1 (14.9%) Air Canada 5,917 142,362 150,884 Alimentation Couche-Tard, Class B 10,763 450,130 490,255 Bank of Montreal 2,313 233,642 293,890 BCE 6,299 367,691 385,058 Bombardier, Class B 72,824 69,961 85,204 Boralex, Class A 2,613 90,704 98,641 BRP 1,764 133,190 171,108 CAE 5,281 170,438 201,629 Canadian National Railway Company 3,532 476,644 461,950 Cascades 3,871 56,513 59,071 CGI, Class A 2,890 284,633 324,807 Cogeco Communications 831 86,427 100,726 Dollarama 5,213 254,232 295,786 Gildan Activewear 2,602 99,515 119,015 iA Financial Group 2,631 152,627 177,566 Innergex Renewable Energy 3,925 85,532 84,584 Laurentian Bank of Canada 1,721 74,992 75,190 Lightspeed POS 2,838 177,119 294,442 Metro 5,580 316,272 331,619 Molson Coors Beverage Company, Class B 1,176 77,325 78,268 National Bank of Canada 6,315 461,736 585,843 Power Corporation of Canada 7,951 242,342 311,520 Québecor, Class B 7,368 238,438 243,586 Richelieu Hardware 1,940 62,966 77,833 Royal Bank of Canada 3,873 415,790 486,410 Saputo Group 4,280 161,762 158,232 SNC-Lavalin Group 2,142 54,553 69,080 TFI International 1,183 84,630 133,880 Transcontinental, Class A 3,502 66,589 81,527 WSP Global 994 104,319 143,827 5,693,074 6,571,431 Total Québec Equities 17,102,901 19,756,869 Bonds (24.7%) Governments of Québec (24.7%) Province of Québec 2.50%, 2026-09-01 1,555,000 1,660,938 1,647,432 2.75%, 2027-09-01 1,750,000 1,898,711 1,882,122 2.75%, 2028-09-01 1,570,000 1,704,932 1,691,556 2.30%, 2029-09-01 2,205,000 2,313,888 2,297,080 6.00%, 2029-10-01 245,000 333,394 323,656 1.90%, 2030-09-01 2,900,000 2,937,198 2,904,393 2.10%, 2031-05-27 75,000 74,786 76,195 1.50%, 2031-09-01 75,000 70,835 71,610 Total Québec Bonds 10,994,682 10,894,044 Money Market Securities (0.3%) Province of Quebec Treasury Bills 2021-07-30 150,000 149,983 149,983 Total Québec Securities 28,247,566 30,800,896

Canada (0.3%) Money Market Securities (0.3%) Province of Alberta Treasury Bills 2021-07-27 125,000 124,986 124,986

Equities of Québec-based companies comprise shares included in the IQ-30 Index established by the Institut de recherche en économie contemporaine (“IRÉC”). FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 24

SCHEDULE OF INVESTMENT PORTFOLIO AS AT JUNE 30, 2021

Number of Shares / Cost Fair Value Par Value $ $

United States (16.4%) Equities (16.4%) Akamai Technologies 1,448 183,167 209,290 Alphabet, Class C 70 166,098 217,478 Amphenol, Class A 1,924 149,518 163,157 Ball 2,675 291,590 268,657 Becton, Dickinson and Company 963 298,547 290,304 Booking Holdings 68 181,519 184,440 Cognizant Technology Solutions, Class A 2,898 263,604 248,807 Cooper Companies 308 135,780 151,295 CVS Health 2,570 225,478 265,821 Discovery, Class A 4,460 173,127 169,618 Discovery, Class C 2,419 85,022 86,899 Elanco Animal Health 6,987 267,897 300,453 Fiserv 2,627 361,536 348,080 Fortive 2,060 174,840 178,086 Global Payments 1,040 252,546 241,774 Henry Schein 1,627 141,640 149,629 Honeywell International 816 199,004 221,876 International Flavors & Fragrances 1,344 222,290 248,904 Microsoft 1,197 358,212 401,962 Middleby 1,779 286,928 382,081 Nike, Class B 1,405 225,951 269,066 PepsiCo 894 160,953 164,202 Thermo Fisher Scientific 656 379,149 410,224 United Parcel Service, Class B 1,318 289,645 339,780 UnitedHealth Group 822 357,938 408,029 Visa, Class A 1,330 367,196 385,492 Wabtec 2,894 271,994 295,243 Walt Disney Company 1,124 226,118 244,902 Total U.S. Equities 6,697,287 7,245,549

International (10.7%) Equities (10.7%) Air Water 11,600 227,873 221,072 Coca-Cola HBC 4,068 155,321 182,341 Compagnie Financière Richemont 1,261 135,346 189,131 Danone 1,745 149,054 152,278 Diageo 3,641 176,532 216,083 Essilor International 594 111,522 135,888 Fresenius SE & Co. 5,065 300,503 327,534 Grifols 7,308 251,320 245,340 Heineken 1,621 208,838 243,505 Kerry Group, Class A 879 148,844 152,198 Linde 841 282,367 300,816 LVMH Moët Hennessy Louis Vuitton 260 192,242 252,723 MTU Aero Engines Holdings 580 159,156 178,090 Nestlé 1,146 172,704 176,903 Nidec 2,400 310,186 344,783 Pernod Ricard 618 145,731 170,047 Prudential 9,908 229,077 233,352 Reckitt Benckiser Group 1,345 159,594 147,535 Reed Elsevier 5,398 164,753 177,625 SAP 1,283 237,792 224,111 Sodexo 1,093 116,109 126,435 STERIS 739 165,560 188,984 Terumo 2,300 118,843 115,537 Total International Equities 4,319,267 4,702,311

Total Investments (97.2%) 39,389,106 42,873,742

Cash and other net assets components (2.8%) 1,233,508

Net Assets (100.0%) 44,107,250

As at June 30, 2021, the fair value of securities sold under repurchase agreements was $1,852,163. These securities are bonds. These transactions were conducted June 28, 2021 and they mature July 5, 2021. The fair value of collateral received, which is mainly comprised of cash, was $1,889,207. The repurchase price payable is $1,853,265.

The accompanying notes are an integral part of these financial statements. FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 25

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

INVESTMENT OBJECTIVES

The assets of the FlexiFonds Growth Fund (the “Fund”) are primarily invested in Class C Shares of the Fonds de solidarité FTQ, in global shares and, to a lesser extent, in shares of Québec-based companies, mainly those with a large market capitalization listed on a stock exchange. The Fund also invests in Québec government bonds. The Fund aims to provide long-term capital growth and, to a lesser extent, income while contributing to the stimulation of Québec’s economy by prioritizing assets related to Québec’s economy. The maximum exposure to foreign investments is 35%.

FINANCIAL INSTRUMENTS RISKS

CONCENTRATION RISK

The following table summarizes the Fund’s direct concentration risk, as a percentage of the Fund’s net assets attributable to holders of redeemable units:

(in %) June 30, 2021 December 31, 2020 Québec Equities Class C shares of the Fonds de solidarité FTQ 29.9 30.0 Equities of Québec-based companies 14.9 14.9 Bonds of the Government of Québec 24.7 25.7 Money market securities 0.3 Canada Money market securities 0.3 United States Equities 16.4 17.3 International Equities 10.7 11.5 Cash and other net assets components 2.8 0.6

CREDIT RISK

The following table presents the fair value of bonds directly held by the Fund by issuer credit rating:

(in $) June 30, 2021 December 31, 2020 AA 10,894,044 5,613,308

Credit ratings were obtained from recognized rating agencies. FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 26

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

CURRENCY RISK

The following table presents, in Canadian dollars, the foreign currencies to which the Fund is directly and significantly exposed: June 30, 2021 December 31, 2020 (in $ and in %) Fair value % of net assets Fair value % of net assets U.S. dollar 7,245,549 16.4 3,773,225 17.3 Euro 2,508,965 5.7 1,297,882 5.9 Other 2,193,346 5.0 1,214,269 5.6 11,947,860 27.1 6,285,376 28.8

INTEREST RATE RISK

(in $) June 30, 2021 December 31, 2020 5 to 10 years 10,822,434 5,613,308 71,610 10,894,044 5,613,308 1% increase or decrease in market interest rates 758,821 393,271

PRICE RISK

(in $) June 30, 2021 December 31, 2020 Fair value 18,519,291 9,537,642 10% increase or decrease in listed share prices 1,851,929 953,764

LIQUIDITY RISK

FLEXIFONDS GROWTH FUND Unaudited Interim Financial Statements as at June 30, 2021 27

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION ON FINANCIAL INSTRUMENTS (SEE NOTE 4)

FAIR VALUE HIERARCHY TABLE

The following table presents investments by fair value hierarchy level:

(in $) Level 1 Level 2 Total June 30, 2021 Financial assets at fair value through profit or loss (“FVTPL”) Equities 18,519,291 18,519,291 Class C shares of the Fonds de solidarité FTQ 13,185,438 13,185,438 Bonds 10,894,044 10,894,044 Money market securities 274,969 274,969 18,519,291 24,354,451 42 873,742 December 31, 2020

Financial assets at fair value through profit or loss (“FVTPL”) Equities 9,537,642 9,537,642 Class C shares of the Fonds de solidarité FTQ 6,547,198 6,547,198 Bonds 5,613,308 5,613,308 9,537,642 12,160,506 21,698,148

During the six-month period ended June 30, 2021 and the year ended December 31, 2020 there were no transfers of financial instruments between levels.

SECURITIES LENDING

The following table presents the fair value of securities loaned in securities lending activities and collateral received:

(in $) June 30, 2021 December 31, 2020 Fair value of securities loaned 818,575 471,056 Fair value of securities received as collateral 834,946 480,477

Reconciliation of revenues from securities lending activities

The following table shows a reconciliation of the total income generated from securities lending activities and the revenue disclosed in the Fund’s Statement of Comprehensive Income:

June 30, 2021 June 30, 2020 $ % $ % Total revenues 727 100 2,200 100 Net revenues received by the Fund 436 60 1,320 60 Net revenues received by Desjardins Trust Inc. 291 40 880 40

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 28

NOTES TO THE FINANCIAL STATEMENTS

1. GENERAL INFORMATION

The FlexiFonds funds (the “Funds”) are mutual fund trusts created in accordance with the laws of Québec under a declaration of trust dated May 28, 2019. The Funds began operating on June 4, 2019. The Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the “Manager” or the “Fonds de solidarité FTQ”) acts as the manager of the Funds. Its head office, which is also the place of business of the Funds, is located at 545 Crémazie Boulevard East, Suite 200, Montréal, Québec, Canada, H2M 2W4. Desjardins Trust Inc. acts as the trustee of the Funds and Addenda Capital Inc., as their portfolio manager.

2. SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). They were approved by the Board of Directors of the Manager on August 26, 2021.

FINANCIAL INSTRUMENTS - RECOGNITION AND DERECOGNITION

Financial instruments are recognized at fair value at the transaction date, which is the date on which the order to buy or sell is executed. A financial asset is derecognized when the contractual rights to the cash flows from the financial asset have expired or the Funds have transferred substantially all the risks and reward of ownership of the financial asset. A financial liability is derecognized when the contractual obligation is discharged, is cancelled or expires. Cost is determined using the average cost method. Average cost does not include amortization of premiums or discounts on fixed- income securities. Transaction costs, such as brokerage commission, incurred when the Funds purchase or sell securities are recognized as an expense under Transaction costs.

FINANCIAL INSTRUMENTS – CLASSIFICATION

Financial assets and liabilities at fair value through profit or loss (FVTPL) Since the Funds’ investments are managed and their performance is evaluated on a fair value basis in accordance with an investment strategy set out in their Simplified Prospectus, Investments are classified as at FVTPL. The Funds’ obligation for net assets attributable to holders of redeemable units is a financial liability and is measured at the redemption amount, which approximates fair value at the reporting date. Financial assets and liabilities at amortized cost All other financial assets and liabilities are classified as at amortized cost, namely Cash, Subscriptions receivable, Accounts receivable for investments sold, Interest, dividends and other assets receivable, Accounts payable for investments purchased and Accrued expenses. Given the short-term nature and maturity of these assets and liabilities, their carrying amount approximates their fair value.

FINANCIAL INSTRUMENTS – FAIR VALUE MEASUREMENT

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. The fair value of financial instruments traded in an active market is based on market closing price at the reporting date. The Funds use the closing price for financial instruments when such price falls within the bid-ask spread. When the closing price is not within the bid- ask spread, the Manager determines the point within the bid-ask price that is most representative of fair value based on the specific facts and circumstances.

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 29

NOTES TO THE FINANCIAL STATEMENTS

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FINANCIAL INSTRUMENTS – FAIR VALUE MEASUREMENT (CONTINUED)

Equities Equities are recorded at the closing price on the recognized stock exchange on which the corresponding security is principally traded. Money Market Securities Money market securities are recorded at cost includind accrued interest, which closely approximates fair value. Bonds Bonds are measured using closing prices obtained from recognized securities dealers. Class C shares of the Fonds de solidarité FTQ Net assets per Class C share of the Fonds de solidarité FTQ are established twice a year, as at May 31 and November 30, based on audited financial statements, and the value prevailing for a six-month period is published on or about June 30 and December 31, respectively. Exceptionally, the Fonds de solidarité FTQ could remeasure net assets per Class C share at another date. Class C shares of the Fonds de solidarité FTQ are recorded at the prevailing value, adjusted if needed.

SECURITIES LENDING AND REPURCHASE TRANSACTIONS

The Funds may enter into securities lending and repurchase transactions through the securities lending program of Desjardins Trust Inc., the Funds’ custodian. Securities loaned and sold under repurchase agreements are not derecognized in the Statement of Financial Position as substantially all the risks and rewards of ownership of the securities are retained by the Funds. To limit the risk that the counterparty fails to fulfill its obligations, the Funds obtain collateral representing at least 102% of the contract amount, determined daily based on the previous business day’s fair value of the securities loaned or sold under repurchase agreements. Securities received as collateral in securities lending transactions are not recognized in the Statement of Financial Position as substantially all the risks and rewards of ownership of the securities have not been transferred to the Funds. Repurchase transactions are recognized as secured borrowing transactions and are recorded at the repurchase price determined by the commitment, which approximates their fair value. Revenues generated through Desjardins Trust Inc.’s securities lending program are shared by the Funds and Desjardins Trust Inc. using the rate presented in the “Notes to the financial statements – Specific information on financial instruments” section pertaining to each Fund. Revenues generated by securities lending activities and repurchase transactions are presented under Revenues from securities lending activities in the Statement of Comprehensive Income.

REVENUE RECOGNITION

Interest Interest income is recognized as it is earned. The Funds do not amortize premiums paid or discounts received on fixed-income securities. Dividends Dividends are recognized on the ex-dividend date. Foreign dividend income is recognized on a gross basis. Changes in fair value Net realized and unrealized gains and losses on investments are calculated based on the cost determined using the average cost method.

FUNCTIONAL CURRENCY AND FOREIGN CURRENCY TRANSLATION

The Canadian dollar is the functional currency and the reporting currency of the Funds. The Funds’ subscriptions and redemptions are denominated in Canadian dollars. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at each valuation date. Purchases and sales of securities, as well as revenues and expenses, denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the transaction dates. Foreign exchange gains and losses relating to cash are presented under Foreign exchange gain (loss) on cash, while those relating to other financial instruments are presented under Changes in fair value in the Statement of Comprehensive Income. .

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 30

NOTES TO THE FINANCIAL STATEMENTS

SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

INVESTMENT ENTITY

The Funds meet the definition of investment entity in IFRS 10 - Consolidated Financial Statements and, consequently, they recognize and measure their investments, including investments in structured entities, at FVTPL.

INCOME TAXES

Under the Income Tax Act (Canada) and the Taxation Act (Québec) (hereinafter collectively referred to as the “Tax Act”), the Funds are considered as mutual fund trusts. All of the Funds’ net income for tax purposes and sufficient net capital gains realized in any year are distributed to holders of redeemable units, such that no income tax is payable by the Funds. As a result, the Funds do not recognize income taxes and, therefore, the tax benefit of capital and non-capital losses, if any, has not been reflected as a deferred income tax asset in the Statement of Financial Position. The Funds currently incur withholding taxes imposed by certain foreign countries on investment income and capital gains. Such income and gains are recognized on a gross basis and the related withholding taxes are shown in the Statement of Comprehensive Income.

ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED

As at the date of authorization of these financial statements, new standards and amendments to existing standards had been issued by the International Accounting Standards Board (“IASB”) but were not effective. None of them is likely to have a significant impact on recognition and disclosures for the Funds.

3. ACCOUNTING ESTIMATES AND CRITICAL JUDGMENTS

The preparation of financial statements in accordance with IFRS requires using accounting estimates and judgment when applying certain accounting policies. The following paragraph addresses the significant judgments made by the Manager in applying the Funds’ accounting policies that could have a material impact on the financial statements.

REDEEMABLE UNITS

Under IAS 32 - Financial Instruments: Presentation, redeemable units must be classified as liabilities in the Statement of Financial Position unless all the criteria for classifying them as equity instruments are met. As the Funds’ units do not meet the criteria in IAS 32 for being classified as equity instruments, they are presented as financial liabilities under Net assets attributable to holders of redeemable units in the Statement of Financial Position.

4. FINANCIAL INSTRUMENT DISCLOSURES

FINANCIAL INSTRUMENT RISK MANAGEMENT

As a result of their activities, the Funds are exposed to various financial instrument risks, namely concentration risk, liquidity risk, credit risk and market risk (including price risk, currency risk and interest rate risk). The Manager is responsible for risk management, establishing investment policies as well as selecting and monitoring the portfolio manager. The overall risk management for the Funds is intended to maximize the returns earned for the level of risk to which the Funds are exposed and minimize the potential negative impact on financial performance. All investments are exposed to impairment risk. The Manager validates monthly the performance analysis provided by the portfolio manager and the performance analysis is presented quarterly to the Manager’s Financial Assets Management Committee. The Manager also ensures that the Funds’ investment policy is adhered to and prepares a compliance report that is presented quarterly to the Manager’s Financial Assets Management Committee. Tables detailing the risk exposures and sensitivity analyses for each of the Fund’s specific risks are presented in the “Notes to the financial statements – Specific information on financial instruments” section. The sensitivity analyses presented may differ from actual results, and differences could be material. As a portion of the Fund is invested in Class C shares of the Fonds de solidarité FTQ, the Fund is indirectly exposed to the concentration, liquidity, credit and market risks arising from the financial assets and liabilities held by this financial instrument. Only the direct exposure to risks arising from financial instruments held by the Fund is disclosed.

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 31

NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL INSTRUMENT DISCLOSURES (CONTINUED)

FINANCIAL INSTRUMENT RISK MANAGEMENT (CONTINUED)

Uncertainty remains as to how the COVID-19 pandemic will evolve and what its potential impact will be in the coming months on financial instrument risks, mainly market risk, and changes in the fair value of the Funds’ net assets.

CONCENTRATION RISK

Concentration risk arises because of the concentration of exposures with the same issuer or within the same category, whether it is geographical location or industry sector. When a mutual fund invests a large part of its assets in securities issued by one or a few issuers, there is concentration risk. If it holds significant investments in a limited number of issuers, the mutual fund will be less diversified and may be subject to greater volatility from changes in the market value of the securities of such issuers. The Canadian securities regulatory authorities have adopted rules and restrictions regarding investments by mutual funds. Among these restrictions is an investment limit of 10% of the value of the mutual fund in a single issuer. However, if certain conditions are met, mutual funds may be authorized to invest more than 10% of their net assets in the securities of a single issuer. The Funds obtained an exemption from the restriction set out in Regulation 81-102 (the “Exemption”) to allow them to invest 30% of their net assets in Class C shares of the Fonds de solidarité FTQ. It should be noted that investing a significant portion of the Funds’ net assets in Class C shares of the Fonds de solidarité FTQ is part of the Funds’ investment objectives. Thus, the Funds’ net assets may be less diversified than other mutual funds that have not obtained this Exemption. In addition, such concentration may make the Funds’ net asset value more volatile and may reduce the liquidity of their investment portfolios. In addition, since the Funds are intended to stimulate the Québec economy, they prioritize holding investments related to Québec’s economy. Such investments represent a target allocation of 70% of their investments, thus exposing them to a geographic concentration risk. For each of the Funds, investments related to Québec’s economy comprise Class C shares of the Fonds de solidarité FTQ representing 30% of total investments, and the remaining 40% comprises, depending on the type of FlexiFonds Fund, bonds issued or guaranteed by the Government of Québec and shares of companies with a large market capitalization listed on a stock exchange from various sectors of the Québec economy and replicating the Québec IQ-30 Index.

LIQUIDITY RISK

Liquidity risk is the risk that a Fund will have difficulty meeting its obligations related to financial liabilities, including the redemption of units. It refers to how quickly and easily an asset may be sold at a fair price and converted into cash, so that the Fund may satisfy redemption requests. In accordance with the investment objectives, the Funds may invest 30% of their net assets in Class C shares of the Fonds de solidarité FTQ. Since the Class C shares of the Fonds de solidarité FTQ may represent a material proportion of the Funds’ net assets, the liquidity of the Class C shares of the Fonds de solidarité FTQ may have a considerable impact on the liquidity of the Funds’ units. The management of the liquidity risks resulting from the Class C Shares of the Fonds de solidarité FTQ is integrated into the governance structure of the Fonds de solidarité FTQ and taken into account by the Fonds de solidarité FTQ, its Board of Directors and the Board’s committees, which are mandated to provide oversight for managing risks arising from the operations of the Fonds de solidarité FTQ. The Fonds de solidarité FTQ has a policy for the management of liquidity risks that requires the monitoring of and compliance with specific liquidity ratios designed to limit the risk that the Fonds de solidarité FTQ might be unable to satisfy its short-term commitments and redemption requests for Class C shares of the Fonds de solidarité FTQ submitted by the Funds, including an escalation process upon reaching certain ratio thresholds. The Funds’ investments other than Class C shares of the Fonds de solidarité FTQ are essentially investments traded in an active market, such as shares and bonds, which can readily be disposed of by the Funds.

CREDIT RISK

Credit risk is the possibility that an issuer of bonds or other fixed-income securities is unable to pay interest on the investment or repay principal upon maturity. The Funds’ exposure to credit risk is limited since the fixed-income securities they hold comprise bonds issued or guaranteed by the Government of Québec and the Government of Canada, including their agencies and corporations, and supranational entities.

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 32

NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL INSTRUMENT DISCLOSURES (CONTINUED)

MARKET RISK

The Funds’ investments are exposed to market risk, which is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk comprises the three risks described below, namely currency risk, interest rate risk and price risk. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Funds may invest in securities denominated in a currency other than the Canadian dollar. If the Canadian dollar increases (appreciates) against another currency, the investment denominated in that currency will lose value. On the other hand, when the Canadian dollar drops (depreciates) against another currency, the investment denominated in that currency will increase in value. Such exchange rate fluctuations may affect the value of the Funds. The Funds may use derivative instruments to reduce risks related to exchange rate fluctuations. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate risk occurs when a mutual fund invests in interest-bearing financial instruments, such as bonds and other fixed-income securities. Generally, the value of fixed-income securities will tend to drop when interest rates rise. If interest rates fall, the value of fixed-income securities will tend to increase. Changes in interest rates can also affect the value of equity securities. Price risk Price risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market price, other than those arising from currency risk or interest rate risk. The Funds are exposed to price risk since they hold listed shares. The maximum risk to which these financial instruments are exposed is equal to their fair value. The Funds are also exposed to changes in value of Class C shares of the Fonds de solidarité FTQ as their value is updated every six months. As mentioned previously, the tables on price risk exposure do not include the change in value of Class C shares of the Fonds de solidarité FTQ. The development of the COVID-19 pandemic could lead to greater volatility in fair value of listed shares in the coming months and in value of Class C shares of the Fonds de solidarité FTQ in the coming six-month periods.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Classification in hierarchy levels of financial instruments measured at fair value The fair value measurement of financial instruments is determined using the following three hierarchy levels: . Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; . Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; . Level 3: Inputs that are unobservable for the asset or liability. The classification in one of the hierarchy levels is determined upon the initial fair value measurement of the financial instrument and is reviewed each reporting period. Any transfers between hierarchy levels are measured at fair value at the beginning of the year. A table detailing investments by fair value hierarchy level at the reporting date for each of the Funds is presented in the “Notes to the financial statements – Specific information on financial instruments”. The main investments are classified in hierarchy levels as follows: Equities These financial instruments are classified in Level 1 when the security is actively traded and a reliable price is observable. Certain shares may not trade frequently and therefore observable prices may not be available. In such cases, fair value is determined using observable market data and the fair value is classified in Level 2. If the determination of fair value uses significant unobservable data, then it is classified in Level 3.

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 33

NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL INSTRUMENT DISCLOSURES (CONTINUED)

FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

Classification in hierarchy levels of financial instruments measured at fair value (CONTINUED)

Bonds and money market securities These financial instruments are classified in Level 2, as their fair value is based on a closing price obtained from recognized securities brokers. Class C shares of the Fonds de solidarité FTQ Class C shares of the Fonds de solidarité FTQ are not traded in an active market since they can solely be traded between the Fonds de solidarité FTQ and the Funds pursuant to a Rebalancing Policy applied by the portfolio manager. As their fair value corresponds to subscription and redemption prices prevailing at measurement date, these shares are classified in Level 2.

5. NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

AUTHORIZED UNITS

The Funds may issue an unlimited number of Series 1 units offered on an ongoing basis. The units grant their holders the same rights and privileges. Each unit entitles its holder to one vote on matters the holder has a voting right, as well as to participate equally in distributions made by the Funds and, on liquidation of a Fund, in the assets of such Fund, net of liabilities. The number of redeemable units outstanding as at June 30, 2021 and December 31, 2020 is presented below the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.

CAPITAL MANAGEMENT

Outstanding units represent the Funds’ capital. In accordance with their investment objectives and strategies, the Funds aim to invest the sums received upon the issuance of units in appropriate investments, while maintaining sufficient liquidity to satisfy redemption requests. The Funds are generally not subject to specific requirements regarding their capital.

DISTRIBUTIONS TO UNITHOLDERS

The Funds can distribute income quarterly in March, June, September and December, and distribute capital gains annually in December. Distributions are made in units of the Funds at the Funds’ current net asset value.

VALUATION OF UNITS

The net asset value per redeemable unit is calculated each day the Toronto Stock Exchange is open for trading and corresponds to the net asset value of the Fund divided by the number of redeemable units outstanding. The purchase, switch or redemption of a redeemable unit is carried at the net asset value on the valuation day of the redeemable unit.

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO REDEEMABLE UNITS PER UNIT

The increase (decrease) in net assets attributable to holders of redeemable units per unit presented in the Statement of Comprehensive Income represents the increase (decrease) in net assets attributable to holders of redeemable units divided by the weighted average number of units outstanding during the year. The weighted average number of units outstanding during the six-month periods ended June 30, 2021 and 2020 is presented below the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 34

NOTES TO THE FINANCIAL STATEMENTS

6. RELATED PARTY TRANSACTIONS

MANAGEMENT AND ADMINISTRATION FEES

The investment and administration activities of the Funds are managed by the Manager, the Fonds de solidarité FTQ. The Funds pay to the Manager annual management fees at a fixed rate before taxes of 1.12% (1.28% after taxes) of the Funds’ net asset value. Management fees cover, without limitation, the portfolio manager’s fees, the commercialization and marketing expenses of the Funds as well expenses attributable to other services offered by the Manager to the Funds. In addition, the Funds pay to the Manager administration fees at a fixed rate before taxes of 0.18% (0.21% after taxes) of the Funds’ net asset value. In consideration of the administration fees, the Manager pays certain operating expenses of the Funds including, without limitation, legal fees, auditing fees, custodianship fees, transfer agent and registrar fees, fees related to accounting and the valuation of the Funds, trustee services fees relating to registered plans, filing fees as well as the costs related to the preparation and distribution of financial reports, simplified prospectuses, annual information forms, fund facts, and other communication to investors regarding the Funds. Operating expenses that remain the direct responsibility of the Funds include, more particularly, fees and expenses payable in connection with the Independent Review Committee, sales taxes and taxes when applied. The Manager may, for certain years and in certain cases, assume a portion of the Funds other operating expenses. Operating expenses assumed by the Manager are presented under Expenses absorbed by the Manager in the Statement of Comprehensive Income. Management and administration fees paid to the Manager by the Funds as well as expenses absorbed by the Manager for the six-month periods ended June 30, 2021 and 2020 are detailed as follows: Expenses absorbed by (in $) Management fees Administration fees the Manager June 30, 2021 FlexiFonds Conservative 395,721 63,599 14,668 FlexiFonds Balanced 354,915 57,040 12,922 FlexiFonds Growth 203,898 32,769 7,334 June 30, 2020 FlexiFonds Conservative 191,156 31,064 13,403 FlexiFonds Balanced 112,256 18,447 7,884 FlexiFonds Growth 82,620 13,733 4,993

DEALER COMPENSATION FROM MANAGEMENT FEES

The principal distributor, FlexiFonds de solidarité FTQ inc., a wholly-owned subsidiary of the Fonds de solidarité FTQ, receives from the Manager fees for services rendered in connection with the distribution of the Funds’ units. These fees are paid from management fees and correspond to 55% of management fees. This compensation, provided for in a principal distributor agreement between the Fonds de solidarité FTQ and FlexiFonds de solidarité FTQ inc., allows the principal distributor to cover its operating expenses (including expenses in connection with salaries, rents, insurance, marketing and communications) and to maintain working capital in accordance with the regulation. There is no trailing commission paid by the Manager or a member of the Funds’ organization to FlexiFonds de solidarité FTQ inc.

FLEXIFONDS FUND Unaudited Interim Financial Statements as at June 30, 2021 35

NOTES TO THE FINANCIAL STATEMENTS

RELATED PARTY TRANSACTIONS (CONTINUED)

INVESTMENT IN CLASS C SHARES OF THE FONDS DE SOLIDARITÉ FTQ

In accordance with the investment objectives and strategies of the Funds, 30% of their net assets is invested in Class C shares of the Fonds de solidarité FTQ. Transactions on Class C shares of the Fonds de solidarité FTQ are carried out by the portfolio manager, Addenda Capital Inc., by application of the Funds’ Rebalancing Policy, at the value of the Class C share of the Fonds de solidarité FTQ prevailing at the time of the transaction. The Funds’ investments in Class C shares of the Fonds de solidarité FTQ are detailed as follows:

(in number of shares and in $) Number of shares Fair value June 30, 2021 FlexiFonds Conservative 392,313 20,874,975 FlexiFonds Balanced 406,060 21,606,453 FlexiFonds Growth 247,800 13,185,438 December 31, 2020 FlexiFonds Conservative 343,427 16,865,700 FlexiFonds Balanced 244,143 11,989,863 FlexiFonds Growth 133,317 6,547,198

CONTRIBUTIONS

The Manager made contributions to launch the Funds. The number of units of the Funds held by Manager is detailed as follows:

(in number of units and in %) Number of units held Net asset % June 30, 2021 FlexiFonds Conservative 2,042,324 32.3 FlexiFonds Balanced 1,027,139 15.9 FlexiFonds Growth 1,042,396 27.6 December 31, 2020 FlexiFonds Conservative 2,042,324 39,7 FlexiFonds Balanced 1,027,139 28,4 FlexiFonds Growth 1,042,396 53,6

7. INCOME TAXES

Under the Income Tax Act, mutual funds trust may claim a refund of the capital gains tax. A mathematical formula that takes into account units redeemed during the year is utilized to maximize the claim in order to retain capital gains in the Funds and minimize income taxes payable by unitholders. Capital losses can be carried forward indefinitely and deducted against future capital gains. Non-capital losses can be carried forward up to 20 years and deducted against future investment income and capital gains.

LOSS CARRY FORWARD

As at December 31, 2020, the Funds had no capital or non-capital losses that could be carried forward.