Financial Statements | June 30, 2015

financial GUARDIAN CAPITAL FUNDS statements Guardian Balanced Fund Guardian Balanced Income Fund June 30, 2015 Guardian Canadian Bond Fund Guardian Canadian Equity Fund Guardian Canadian Growth Equity Fund Guardian Canadian Short-Term Investment Fund Guardian Canadian Small/Mid Cap Equity Fund Guardian Equity Income Fund Guardian Fundamental Global Equity Fund Guardian Global Dividend Growth Fund Guardian Global Equity Fund Guardian Growth & Income Fund Guardian High Yield Bond Fund Guardian International Equity Fund Guardian Managed Income Portfolio Guardian Managed Income & Growth Portfolio Guardian Private Wealth Bond Fund Guardian Private Wealth Equity Fund Guardian Short Duration Bond Fund Guardian U.S. Equity Fund

Managed by Guardian Capital LP

Table of Contents

financial statements | June 30, 2015

Management’s Responsibility for Financial Reporting 2

Financial Statements for each of the Guardian Capital Funds, comprising the following: • Schedule of Investment Portfolio • Statements of Net Assets • Statements of Operations • Statements of Changes in Net Assets Attributable to Unitholders • Statements of Cash Flows • Supplementary Schedules to the Notes to the Financial Statements

Guardian Balanced Fund 3 Guardian Balanced Income Fund 9 Guardian Canadian Bond Fund 15 Guardian Canadian Equity Fund 23 Guardian Canadian Growth Equity Fund 29 Guardian Canadian Short-Term Investment Fund 35 Guardian Canadian Small/Mid Cap Equity Fund 41 Guardian Equity Income Fund 47 Guardian Fundamental Global Equity Fund 53 Guardian Global Dividend Growth Fund 59 Guardian Global Equity Fund 65 Guardian Growth & Income Fund 72 Guardian High Yield Bond Fund 78 Guardian International Equity Fund 86 Guardian Managed Income Portfolio 92 Guardian Managed Income & Growth Portfolio 98 Guardian Private Wealth Bond Fund 104 Guardian Private Wealth Equity Fund 110 Guardian Short Duration Bond Fund 116 Guardian U.S. Equity Fund 123 • Notes to Financial Statements 129

1 Management’s Responsibility for Financial Reporting

financial statements | June 30, 2015

August 28, 2015

The accompanying interim financial statements of the Guardian Capital Funds have been prepared by Guardian Capital LP (the “Manager”), in its capacity as Manager and Trustee of the Guardian Capital Funds (collectively, the “Funds”). The Manager is responsible for the information and representations contained in these financial statements, which have been approved by the Board of Directors of the general partner of the Manager, Guardian Capital Inc.

The Manager maintains appropriate procedures and controls to ensure that reliable financial information relating to the Funds is produced. The interim financial statements have been prepared in accordance with International Financial Reporting Standards, and include certain amounts based upon estimates and judgments. The significant accounting policies which the Manager believes are appropriate for the Funds are described in the notes to the financial statements.

These interim financial statements have not been reviewed or audited by the independent auditors of the Funds.

Donald Yi Chief Financial Officer

2 Guardian Balanced Fund

financial statements | June 30, 2015

Guardian Balanced Fund

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015 Number of Shares/ Units/ Average Fair Par Value Security Cost Value

INVESTMENT FUNDS - 99.9% 1,669,863 Guardian Canadian Bond Fund, Series I $ 18,573,044 $ 18,702,464 122,426 Guardian Canadian Equity Fund, Series I 15,865,667 17,046,640 409,607 Guardian Global Dividend Growth Fund, Series I 5,653,393 7,127,154 733,680 Guardian Global Equity Fund, Series I 6,369,022 7,637,614 Total investment funds 46,461,126 50,513,872 Transaction costs - - Total investments - 99.9% 46,461,126 50,513,872

Other net assets - 0.1% 27,842 Net assets attributable to unitholders - 100.0% $ 50,541,714

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

3 Guardian Balanced Fund

financial statements | June 30, 2015

Guardian Balanced Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 124,688 $ 107,961 Investments $ 50,513,872 $ 47,653,326 Interest for distribution purposes 322,280 304,077 Cash, net 62,459 6,016 Net realized gains (losses) on sale of investments 256,454 1,369,726 Due from brokers - - Change in unrealized appreciation Short-term securities - - (depreciation) in value of investments 1,182,210 2,228,220 Subscriptions receivable 25,891 101,847 Net gains (losses) on investments 1,885,632 4,009,984 Interest and dividends receivable - - Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 50,602,222 47,761,189 Net gains (losses) on derivatives - - Securities lending income (Note 10) - - Liabilities Foreign exchange gains (losses) on cash - - Current liabilities Total income (loss) 1,885,632 4,009,984 Bank overdraft - - Due to brokers 56,917 - Operating expenses (Note 4) Redemptions payable - 65,968 Administration fee 11,313 11,730 Distributions payable - - Management fee 6,395 2,542 Accrued expenses due to Manager 3,591 3,264 Independent review committee costs 636 720 Unrealized depreciation on Interest charges 1 - foreign currency contracts - - Transaction costs - - 60,508 69,232 Foreign withholding taxes - - Total operating expenses 18,345 14,992 Net assets attributable to unitholders ("NAV") $ 50,541,714 $ 47,691,957 Increase (decrease) in NAV from operations $ 1,867,287 $ 3,994,992

NAV per series Increase (decrease) in NAV from operations per series Series W $ 879,613 $ 598,310 Series W $ 16,894 $ 20,086 Series I 49,662,101 47,093,647 Series I 1,850,393 3,974,906

NAV per unit per series Increase (decrease) in NAV from operations per unit, per series (Note 3) Series W $ 10.34 $ 10.03 Series W $ 0.23 $ 0.68 Series I 15.34 14.76 Series I 0.57 1.15

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

4 Guardian Balanced Fund

financial statements | June 30, 2015

Guardian Balanced Fund

Financial Statements Statements of Changes in Net Assets Attributable to Unitholders (Unaudited) 2015 2014 2015 2014 2015 2014 For the six months ended June 30 Series W Series W Series I Series I Total Total

NAV, beginning of period $ 598,310 $ 259,860 $ 47,093,647 $ 49,507,914 $ 47,691,957 $ 49,767,774

Increase (decrease) in NAV from operations 16,894 20,086 1,850,393 3,974,906 1,867,287 3,994,992

Distributions to unitholders from: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units 332,395 71,891 3,590,893 7,482,312 3,923,288 7,554,203 Reinvested distributions ------Redemption of units (67,986) (389) (2,872,832) (15,733,382) (2,940,818) (15,733,771) 264,409 71,502 718,061 (8,251,070) 982,470 (8,179,568)

Net increase (decrease) in NAV 281,303 91,588 2,568,454 (4,276,164) 2,849,757 (4,184,576)

NAV, end of period $ 879,613 $ 351,448 $ 49,662,101 $ 45,231,750 $ 50,541,714 $ 45,583,198

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 59,651 26,159 3,189,878 3,405,052 Number of units issued 31,887 6,940 231,455 497,097 Number of units reinvested - - - - 91,538 33,099 3,421,333 3,902,149 Number of units redeemed (6,459) (37) (184,831) (1,019,080)

Units issued and outstanding, end of period 85,079 33,062 3,236,502 2,883,069

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

5 Guardian Balanced Fund

financial statements | June 30, 2015

Guardian Balanced Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 1,867,287 $ 3,994,992 Guardian Balanced Fund (the “Fund”) was formed on July 31, 1995. The primary objective of the Fund is Adjustments for: the achievement of a balance between long-term growth of capital and reasonable income through Foreign exchange (gain) loss on cash - - diversified investments in equity or equity-related securities and in fixed-income securities, either long- Net realized (gains) losses on sale of investments (256,454) (1,369,726) term or short-term. The Fund will invest in mutual or pooled funds managed by the Manager (or an Change in unrealized (appreciation) affiliated company) whose investment holdings help meet the primary objective. Pursuant to an depreciation in value of investments (1,182,210) (2,228,220) amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Series A units Change in unrealized (appreciation) were renamed as Series W units. The address of the Fund and the Manger's principal business office is depreciation in foreign currency contracts - - Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Purchases of investments (3,990,070) (8,920,622) Note 3: Increase (decrease) in NAV from operations per unit per series Proceeds from sale of investments 2,625,105 16,722,868 The weighted average number of units outstanding during the period used to calculate the increase (Increase) decrease in short-term securities, net - - (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in interest and dividends receivable - - For the six months ended June 30 2015 2014 Increase (decrease) in accrued expenses due to Manager 327 688 Series I 3,224,183 3,467,271 Increase (decrease) in distributions payable - - Series W 73,173 29,328 Net cash from (used in) operating activities (936,015) 8,199,980 Note 4: Operating expenses Cash flows from (used in) financing activities The Manager currently charges to the Fund management fees and administration fees, and the Distributions paid, net of reinvested distributions - - annual rates of these fees are as follows: Proceeds from issuance of units 3,999,244 7,540,002 Annual management fee rate 2015 2014 Redemption of units (3,006,786) (15,733,771) Series I 0.00% 0.00% Net cash from (used in) financing activities 992,458 (8,193,769) Series W 1.50% 1.50%

Foreign exchange Annual administration fee rate 2015 2014 Net effect of foreign exchange on cash balances - - Series I 0.04% 0.04% Series W 0.04% 0.04% Net increase (decrease) in cash 56,443 6,211 Cash, net (bank overdraft), beginning of period 6,016 3,069 Note 5: Income taxes Cash, net (bank overdraft), end of period $ 62,459 $ 9,280 The Fund has the following tax losses available to be carried forward and applied against future capital gains or income: Cash activity included in operating activities: As at December 31, 2014 December 31, 2013 Interest received $ 322,280 $ 304,077 Capital losses $ - $ - Interest paid (1) - Non-capital losses - - Dividends received, net of withholding taxes 124,688 107,961 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

6 Guardian Balanced Fund

financial statements | June 30, 2015

Guardian Balanced Fund

Note 8 (a) (ii): Interest rate risk: Investment sectors, as at June 30, 2015 December 31, 2014 The table below summarizes the Fund's exposure to interest rate risk. The term to maturity of the Fund's interest rate sensitive Canadian bond fund 37.0% 37.5% investments are as follows: Canadian equity fund 33.7% 34.9% As at June 30, 2015 December 31, 2014 Global equity fund 29.2% 27.5% Term to maturity: Other net assets (liabilities) 0.1% 0.1% Less than one month $ 316,533 $ 206,999 Total 100.0% 100.0% One to three months 316,393 197,167 Three months to one year 77,136 7,493 Note 8 (d): Credit risk: One to five years 5,384,645 6,186,204 The table below summarizes the Fund's direct and indirect credit risk exposure Over five years 13,249,713 11,286,943 grouped by credit ratings as a percentage of fixed-income securities: Total interest rate sensitive investments $ 19,344,420 $ 17,884,806 Rating, as at June 30, 2015 December 31, 2014 Bonds: Note 8 (a) (ii): Interest sensitivity: AAA 33.1% 33.5% If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held AA 45.6% 37.2% constant, the increase or decrease in the Fund’s NAV would amount to approximately: A 17.8% 20.5% As at June 30, 2015 December 31, 2014 BBB 0.5% - Interest sensitivity $ 349,000 $ 320,000 BB - - % of NAV 0.7% 0.7% B - - CCC - - Note 8 (a) (iii): Other price risk: D - - The table below summarizes the Fund's exposure to other price risk: Unrated - - As at June 30, 2015 December 31, 2014 Short-term securities: Other price risk $ 31,169,452 $ 29,768,520 R-1 High 2.8% 8.7% % of NAV 61.7% 62.4% R-1 Mid 0.2% 0.1% Total 100.0% 100.0% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this would have increased or decreased the Fund's NAV as follows: As at June 30, 2015 December 31, 2014 Change in NAV $ 1,558,000 $ 1,488,000 % of NAV 3.1% 3.1% In practice, the actual trading results could differ, and the difference could be material.

7 Guardian Balanced Fund

financial statements | June 30, 2015

Guardian Balanced Fund

Note 12: Investments in non-consolidated structured entities The summary of significant transfers between levels during the periods are as follows: The Fund has invested in non-consolidated entities ("NCE") and details of these investments are For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to as follows: 30, 2015 Level 2 Level 1 Level 3 Level 2 Total net assets of Fair value of Fund's Equity investments $ - $ - $ - $ - the NCE investment in NCE Fixed-income investments - - - - As at June 30, 2015 Short-term securities - - - - Guardian Canadian Bond Fund, Series I $ 131,212,317 $ 18,702,464 Investment funds - - - - Guardian Canadian Equity Fund, Series I 391,482,384 17,046,640 Derivatives - assets - - - - Guardian Global Dividend Growth Fund, Derivatives - liabilities - - - - Series I 238,202,755 7,127,154 Total $ - $ - $ - $ - Guardian Global Equity Fund, Series I 27,921,132 7,637,614

For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to As at December 31, 2014 30, 2014 Level 2 Level 1 Level 3 Level 2 Guardian Canadian Bond Fund, Series I $ 121,376,720 $ 17,884,806 Equity investments $ - $ - $ - $ - Guardian Canadian Equity Fund, Series I 285,744,692 16,644,594 Fixed-income investments - - - - Guardian Global Dividend Growth Equity Fund, Short-term securities - - - - Series I 215,678,457 6,502,103 Investment funds - - - - Guardian Global Equity Fund, Series I 35,883,619 6,621,823 Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ - $ - $ - $ -

8 Guardian Balanced Income Fund

financial statements | June 30, 2015

Guardian Balanced Income Fund

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015 Number of Shares/ Units/ Average Fair Par Value Security Cost Value

INVESTMENT FUNDS - 100.1% 333,613 Guardian Canadian Bond Fund, Series I $ 3,654,818 $ 3,736,470 188,313 Guardian Equity Income Fund Series I 3,330,243 3,318,082 164,437 Guardian Global Dividend Growth Fund, Series I 2,438,947 2,861,208 Total investment funds 9,424,008 9,915,760 Transaction costs - - Total investments - 100.1% 9,424,008 9,915,760

Other net liabilites - (0.1%) (12,511) Net assets attributable to unitholders- 100.0% $ 9,903,249

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

9 Guardian Balanced Income Fund

financial statements | June 30, 2015

Guardian Balanced Income Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 106,576 $ 46,526 Investments $ 9,915,760 $ 9,250,431 Interest for distribution purposes 65,209 28,323 Cash, net - - Net realized gains (losses) on sale of investments 14,120 4,001 Due from brokers 35,094 - Change in unrealized appreciation Short-term securities - - (depreciation) in value of investments 83,645 235,716 Subscriptions receivable - 50,000 Net gains (losses) on investments 269,550 314,566 Interest and dividends receivable - - Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 9,950,854 9,300,431 Net gains (losses) on derivatives - - Securities lending income (Note 10) - - Liabilities Foreign exchange gains (losses) on cash - - Current liabilities Total income (loss) 269,550 314,566 Bank overdraft 45,192 73,902 Due to brokers - - Operating expenses (Note 4) Redemptions payable 622 - Administration fee 2,188 978 Distributions payable - - Management fee 6,346 2,308 Accrued expenses due to Manager 1,791 1,216 Independent review committee costs 121 62 Unrealized depreciation on Interest charges 20 37 foreign currency contracts - - Transaction costs - - 47,605 75,118 Foreign withholding taxes - - Total operating expenses 8,675 3,385 Net assets attributable to unitholders ("NAV") $ 9,903,249 $ 9,225,313 Increase (decrease) in NAV from operations $ 260,875 $ 311,181

NAV per series Increase (decrease) in NAV from operations per series Series W $ 1,064,003 $ 570,538 Series W $ 4,661 $ 17,233 Series I 8,839,246 8,654,775 Series I 256,214 293,948

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 11.05 $ 10.95 Series W $ 0.07 $ 0.67 Series I 11.49 11.36 Series I 0.34 0.80

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

10 Guardian Balanced Income Fund

financial statements | June 30, 2015

Guardian Balanced Income Fund

NAV, beginning of period $ 570,538 $ 47,146 $ 8,654,775 $ 3,994,889 $ 9,225,313 $ 4,042,035

Increase (decrease) in NAV from operations 4,661 17,233 256,214 293,948 260,875 311,181

Distributions to unitholders from: Income (12,386) - (151,280) - (163,666) - Capital gains ------(12,386) - (151,280) - (163,666) -

Redeemable unit transactions: Proceeds from issuance of units 501,977 396,986 141,350 21,196 643,327 418,182 Reinvested distributions 12,386 - 95,357 - 107,743 - Redemption of units (13,173) - (157,170) (90,276) (170,343) (90,276) 501,190 396,986 79,537 (69,080) 580,727 327,906

Net increase (decrease) in NAV 493,465 414,219 184,471 224,868 677,936 639,087

NAV, end of period $ 1,064,003 $ 461,365 $ 8,839,246 $ 4,219,757 $ 9,903,249 $ 4,681,122

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 52,104 4,559 762,149 374,452 Number of units issued 44,231 37,296 11,925 1,904 Number of units reinvested 1,121 - 8,299 - 97,456 41,855 782,373 376,356 Number of units redeemed (1,159) - (13,260) (8,343)

Units issued and outstanding, end of period 96,297 41,855 769,113 368,013

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

11 Guardian Balanced Income Fund

financial statements | June 30, 2015

Guardian Balanced Income Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 260,875 $ 311,181 Guardian Balanced Income Fund (the “Fund”) was formed on October 22, 2012. The primary objective of Adjustments for: the Fund is to provide long-term growth of capital and income through a diversified investment portfolio of Foreign exchange (gain) loss on cash - - domestic and global dividend paying equity and fixed-income securities. The Fund will invest in mutual or Net realized (gains) losses on sale of investments (14,120) (4,001) pooled funds managed by the Manager (or an affiliated company) whose investment holdings help meet Change in unrealized (appreciation) the primary objective. Pursuant to an amendment to the Fund’s Declaration of Trust, effective September depreciation in value of investments (83,645) (235,716) 16, 2013, the existing Series A units were renamed as Series W units. The initial subscription for Series Change in unrealized (appreciation) W units was made on September 30, 2013. The address of the Fund and the Manager's principal depreciation in foreign currency contracts - - business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Purchases of investments (788,958) (471,714) Proceeds from sale of investments 186,300 67,092 Note 3: Increase (decrease) in NAV from operations per unit per series (Increase) decrease in short-term securities, net - - The weighted average number of units outstanding during the period used to calculate the increase (Increase) decrease in interest and dividends receivable - - (decrease) in NAV from operations per unit per series are as follows: Increase (decrease) in accrued expenses due to Manager 575 683 For the six months ended June 30 2015 2014 Net cash from (used in) operating activities (438,973) (332,475) Series I 761,127 368,749 Series W 66,735 25,589 Cash flows from (used in) financing activities Distributions paid, net of reinvested distributions (55,923) - Note 4: Operating expenses Proceeds from issuance of units 693,327 418,182 The Manager currently charges to the Fund management fees and administration fees, and the annual Redemption of units (169,721) (90,276) rates of these fees are as follows: Net cash from (used in) financing activities 467,683 327,906 Annual management fee rate 2015 2014 Series I 0.00% 0.00% Foreign exchange Series W 1.50% 1.50% Net effect of foreign exchange on cash balances - - Annual administration fee rate 2015 2014 Net increase (decrease) in cash 28,710 (4,569) Series I 0.04% 0.04% Cash, net (bank overdraft), beginning of period (73,902) 5,813 Series W 0.04% 0.04% Cash, net (bank overdraft), end of period $ (45,192) $ 1,244 Note 5: Income taxes Cash activity included in operating activities: The Fund has the following tax losses available to be carried forward and applied against future Interest received $ 65,209 $ 28,323 capital gains or income: Interest paid (20) (37) As at December 31, 2014 December 31, 2013 Dividends received, net of withholding taxes 106,576 46,526 Capital losses $ - $ - Non-capital losses - -

The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - $ -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

12 Guardian Balanced Income Fund

financial statements | June 30, 2015

Guardian Balanced Income Fund

Note 8 (a) (ii): Interest rate risk: Investment sectors, as at June 30, 2015 December 31, 2014 The table below summarizes the Fund's exposure to interest rate risk. The term to maturity of the Fund's interest rate sensitive Canadian bond fund 37.7% 38.0% investments are as follows: Canadian equity fund 33.5% 34.6% As at June 30, 2015 December 31, 2014 Global equity fund 28.9% 27.7% Term to maturity: Other net assets (liabilities) (0.1%) (0.3%) Less than one month $ 59,425 $ 40,494 Total 100.0% 100.0% One to three months 94,615 38,571 Three months to one period 23,067 1,466 Note 8 (d): Credit risk: One to five periods 1,075,771 1,210,178 The table below summarizes the Fund's direct and indirect credit risk exposure Over five periods 2,647,093 2,208,011 grouped by credit ratings as a percentage of fixed-income securities: Total interest rate sensitive investments $ 3,899,971 $ 3,498,720 Rating, as at June 30, 2015 December 31, 2014 Bonds: Note 8 (a) (ii): Interest sensitivity: AAA 32.7% 33.9% If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables AA 45.1% 37.7% held constant, the increase or decrease in the Fund’s NAV would amount to approximately: A 17.6% 20.8% As at June 30, 2015 December 31, 2014 BBB 0.0% - Interest sensitivity $ 70,000 $ 63,000 BB - - % of NAV 0.7% 0.7% B - - CCC - - Note 8 (a) (iii): Other price risk: D - - The table below summarizes the Fund's direct and indirect exposure to other price risk: Unrated - - As at June 30, 2015 December 31, 2014 Short-term securities: Other price risk $ 6,015,789 $ 5,751,711 R-1 High 4.2% 7.3% % of NAV 60.7% 62.3% R-1 Mid 0.4% 0.3% Total 100.0% 100.0% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this would have increased or decreased the Fund's NAV as follows: As at June 30, 2015 December 31, 2014 Change in NAV $ 301,000 $ 288,000 % of NAV 3.0% 3.1% In practice, the actual trading results could differ, and the difference could be material.

13 Guardian Balanced Income Fund

financial statements | June 30, 2015

Guardian Balanced Income Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 10: Securities lending The summary of the fair value hierarchy for the Fund's investments are as follows: The securities lending income, the values of securities on loan, and the value of collateral held for such loans, are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total For the six months ended June 30 2015 2014 Equity investments $ - $ - $ - $ - Fixed-income investments - - - - Securities lending income $ - $ - Short-term securities - - - - Investment funds 9,915,760 - - 9,915,760 As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ - $ - Total $ 9,915,760 $ - $ - $ 9,915,760 Collateral held for securites on loan - - Percentage of total investments 100.0% - - 100.0% Note 11: Related party unitholders As at December 31, 2014 Level 1 Level 2 Level 3 Total Units of the Fund held by affiliates and officers of the Manager, or other investment funds Equity investments $ - $ - $ - $ - managed by the Manager are as follows: Fixed-income investments - - - - As at June 30, 2015 December 31, 2014 Short-term securities - - - - Series I - number of units 110 108 Investment funds 9,250,431 - - 9,250,431 Series I - percentage of issued units 0.0% 0.0% Derivatives - assets - - - - Derivatives - liabilities - - - - Series W - number of units 105 104 Total $ 9,250,431 $ - $ - $ 9,250,431 Series W - percentage of issued units 0.1% 0.0% Percentage of total investments 100.0% - - 100.0% Note 12: Investments in non-consolidated structured entities The Fund has invested in non-consolidated entities ("NCE"), details of these investments are as The summary of significant transfers between levels during the periods are as follows: follows: For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Total net assets of Fair value of Fund's 30, 2015 Level 2 Level 1 Level 3 Level 2 the NCE investment in NCE Equity investments $ - $ - $ - $ - As at June 30, 2015 Fixed-income investments - - - - Guardian Canadian Bond Fund, Series I $ 131,212,317 $ 3,736,470 Short-term securities - - - - Guardian Equity Income Fund, Series I 156,983,926 3,318,082 Investment funds - - - - Guardian Global Dividend Growth Fund, Derivatives - assets - - - - Series I 238,202,755 2,861,208 Derivatives - liabilities - - - - Total $ - $ - $ - $ - As at December 31, 2014 Guardian Canadian Bond Fund, Series I $ 121,376,720 $ 3,498,720 For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Guardian Equity Income Fund, Series I 159,970,664 3,193,122 30, 2014 Level 2 Level 1 Level 3 Level 2 Guardian Global Dividend Growth Fund, Equity investments $ - $ - $ - $ - Series I 215,678,457 2,558,589 Fixed-income investments - - - - Short-term securities - - - - Investment funds - - - - Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ - $ - $ - $ -

14 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

CANADIAN BONDS - 98.6% CORPORATE - Continued FEDERAL & GUARANTEED - 22.3% 575,000 Bank of Montreal * 5,095,000 Canada Housing Trust No. 1 2.84%, June 4, 2020 $ 574,856 $ 602,430 3.35%, December 15, 2020 $ 5,587,479 $ 5,626,199 1,340,000 Bank of Montreal 2,485,000 Canada Housing Trust No. 1 3.40%, April 23, 2021 1,446,959 1,440,357 2.40%, December 15, 2022 2,485,910 2,594,101 670,000 Bank of Montreal 6,925,000 Canada Housing Trust No. 1 * 2.12%, March 16, 2022 669,739 663,558 3.15%, September 15, 2023 7,391,973 7,570,828 2,635,000 Bank of Nova Scotia 785,000 Canada Housing Trust No. 1 2.37%, January 11, 2018 2,590,495 2,702,961 2.90%, June 15, 2024 798,149 839,770 2,545,000 Bank of Nova Scotia 380,000 Government of Canada 2.75%, August 13, 2018 2,536,664 2,648,825 6.46%, December 1, 2021 750,350 760,805 2,010,000 Bank of Nova Scotia 6,460,000 Government of Canada * 2.40%, October 28, 2019 2,016,948 2,071,568 5.75%, June 1, 2033 9,646,329 9,885,994 830,000 Bank of Nova Scotia 800,000 Government of Canada * 2.13%, June 15, 2020 829,768 839,440 5.00%, June 1, 2037 1,163,200 1,175,221 1,330,000 Bank of Nova Scotia 640,000 Government of Canada * 3.27%, January 11, 2021 1,408,869 1,417,886 2.75%, December 1, 2064 785,920 727,968 1,345,000 Bank of Nova Scotia 28,609,310 29,180,886 2.87%, June 4, 2021 1,345,000 1,403,826 PROVINCIAL & GUARANTEED - 34.4% 535,000 Bank of Nova Scotia 975,000 Province of Alberta 2.90%, August 3, 2022 548,172 549,944 2.90%, September 20, 2029 887,494 991,139 400,000 Caisse Centrale Desjardins 500,000 Province of British Columbia 1.75%, March 2, 2020 400,000 398,560 4.70%, December 1, 2017 551,750 546,394 2,460,000 Canadian Imperial Bank of Commerce 945,000 Province of British Columbia 2.22%, March 7, 2018 2,456,976 2,518,624 2.70%, December 18, 2022 989,793 994,246 1,895,000 Canadian Imperial Bank of Commerce 1,965,000 Province of British Columbia 2.35%, June 24, 2019 1,917,020 1,961,009 8.00%, September 8, 2023 2,735,705 2,830,081 610,000 Fairfax Financial Holdings Ltd. 505,000 Province of British Columbia 4.95%, March 3, 2025 604,595 629,582 5.70%, June 18, 2029 706,192 679,094 650,000 National Bank of Canada 1,100,000 Province of British Columbia 1.95%, December 11, 2017 650,000 659,844 6.35%, June 18, 2031 1,474,045 1,591,985 1,055,000 National Bank of Canada 1,080,000 Province of British Columbia 2.40%, October 28, 2019 1,055,306 1,087,308 4.70%, June 18, 2037 1,229,032 1,360,478 515,000 National Bank of Canada 1,980,000 Province of Ontario 1.74%, March 3, 2020 515,000 513,454 1.90%, September 8, 2017 2,029,485 2,027,408 1,350,000 National Bank of Canada 330,000 Province of Ontario 2.11%, March 18, 2022 1,350,000 1,331,641 1.14%, December 3, 2018 331,254 331,853 269,000 Newfoundland & Labrador Hydro 980,000 Province of Ontario 8.40%, February 27, 2026 380,967 411,453 1.09%, August 26, 2019 981,274 982,455 1,870,000 Ontario Electricity Financial Corp. 540,000 Province of Ontario 8.40%, November 6, 2020 2,540,283 2,484,433 4.00%, June 2, 2021 583,697 610,743 1,975,000 Royal Bank of Canada 1,340,000 Province of Ontario 2.36%, September 21, 2017 1,988,900 2,020,980 3.15%, June 2, 2022 1,433,733 1,445,826 3,125,000 Royal Bank of Canada 905,000 Province of Ontario 2.26%, March 12, 2018 3,139,793 3,198,571 2.85%, June 2, 2023 946,178 949,771 545,000 Royal Bank of Canada 17,679,000 Province of Ontario 3.77%, March 30, 2018 557,514 584,220 5.85%, March 8, 2033 24,134,808 24,491,184 1,640,000 Royal Bank of Canada 1,465,000 Province of Saskatchewan 2.77%, December 11, 2018 1,675,929 1,710,735 5.75%, March 5, 2029 1,962,368 1,965,584 470,000 Royal Bank of Canada * 710,000 Province of Saskatchewan 2.35%, December 9, 2019 470,503 483,340 6.35%, January 25, 2030 847,377 1,005,629 3,600,000 Royal Bank of Canada 710,000 Province of Saskatchewan 2.86%, March 4, 2021 3,780,561 3,762,733 6.40%, September 5, 2031 867,403 1,028,873 675,000 Royal Bank of Canada 860,000 Province of Saskatchewan 2.99%, December 6, 2024 675,000 704,254 5.80%, September 5, 2033 1,278,794 1,197,987 940,000 Toronto-Dominion Bank 43,970,382 45,030,730 2.17%, April 2, 2018 940,000 961,327 CORPORATE - 41.9% 1,860,000 Toronto-Dominion Bank 1,435,000 407 International Inc. 2.45%, April 2, 2019 1,860,468 1,927,319 7.13%, July 26, 2040 1,852,349 2,122,981 1,035,000 Toronto-Dominion Bank 1,420,000 Bank of Montreal 2.56%, June 24, 2020 1,032,381 1,071,132 2.24%, December 11, 2017 1,422,783 1,452,575 2,140,000 Toronto-Dominion Bank 3,620,000 Bank of Montreal 2.62%, December 22, 2021 2,168,823 2,198,886 3.21%, September 13, 2018 3,754,743 3,826,892 2,582,000 Toronto-Dominion Bank 5.76%, December 18, 2106 2,814,685 2,839,876 53,972,049 55,202,524 Total Canadian bonds 126,551,741 129,414,140 * Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of the financial statements. 15 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

Schedule of Investment Portfolio (Unaudited) (continued) As at June 30, 2015 Number of Shares/ Units/ Average Fair Par Value Security Cost Value

MORTGAGE-BACKED - 0.3% 760,557 Merrill Lynch Financial Assets Inc. 4.64%, October 12, 2016 $ 347,635 $ 375,099 Total mortgage-backed 347,635 375,099 Transaction costs - - Total investments - 98.9% 126,899,376 129,789,239

SHORT-TERM SECURITIES - 0.4% 47,436 Guardian Canadian Short-Term Investment Fund, Series I 474,363 474,363 Total short-term securities 474,363 474,363

Other net assets - 0.7% 948,715 Net assets attributable to unitholders - 100.0% $ 131,212,317

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

16 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ - $ - Investments $ 129,789,239 $ 117,846,235 Interest for distribution purposes 2,084,416 1,907,085 Cash, net - - Net realized gains (losses) on sale of investments 1,188,158 200,359 Due from brokers - 35,000 Change in unrealized appreciation Short-term securities 474,363 2,776,394 (depreciation) in value of investments (156,126) 2,829,130 Subscriptions receivable 48,820 167,250 Net gains (losses) on investments 3,116,448 4,936,574 Interest and dividends receivable 960,360 799,378 Net realized gains (losses) on foreign currency contracts (265,691) (16,534) Unrealized appreciation on Change in unrealized appreciation foreign currency contracts (Note 2k) - - (depreciation) on foreign currency contracts 88,325 - 131,272,782 121,624,257 Net gains (losses) on derivatives (177,366) (16,534) Securities lending income (Note 10) 2,550 1,509 Liabilities Foreign exchange gains (losses) on cash 160,177 39,886 Current liabilities Total income (loss) 3,101,809 4,961,435 Bank overdraft 52,183 152,458 Due to brokers - - Operating expenses (Note 4) Redemptions payable 2,000 - Administration fee 28,075 24,991 Distributions payable 217 719 Management fee 939 24 Accrued expenses due to Manager 6,065 6,035 Independent review committee costs 1,599 1,689 Unrealized depreciation on Interest charges 72 87 foreign currency contracts (Note 2k) - 88,325 Transaction costs - - 60,465 247,537 Foreign withholding taxes - - Total operating expenses 30,685 26,791 Net assets attributable to unitholders ("NAV") $ 131,212,317 $ 121,376,720 Increase (decrease) in NAV from operations $ 3,071,124 $ 4,934,644

NAV per series Increase (decrease) in NAV from operations per series Series W $ 256,591 $ 95,346 Series W $ 291 $ 116 Series I 130,955,726 121,281,374 Series I 3,070,833 4,934,528

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.35 $ 10.28 Series W $ 0.02 $ 0.27 Series I 11.20 11.11 Series I 0.27 0.47

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

17 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

NAV, beginning of period $ 95,346 $ 1,001 $ 121,281,374 $ 110,784,384 $ 121,376,720 $ 110,785,385

Increase (decrease) in NAV from operations 291 116 3,070,833 4,934,528 3,071,124 4,934,644

Distributions to unitholders: Income (2,946) (112) (2,235,781) (1,910,870) (2,238,727) (1,910,982) Capital gains ------(2,946) (112) (2,235,781) (1,910,870) (2,238,727) (1,910,982)

Redeemable unit transactions: Proceeds from issuance of units 163,060 5,522 10,252,786 8,057,711 10,415,846 8,063,233 Reinvested distributions 2,919 112 2,048,290 1,746,140 2,051,209 1,746,252 Redemption of units (2,079) - (3,461,776) (11,633,609) (3,463,855) (11,633,609) 163,900 5,634 8,839,300 (1,829,758) 9,003,200 (1,824,124)

Net increase (decrease) in NAV 161,245 5,638 9,674,352 1,193,900 9,835,597 1,199,538

NAV, end of period $ 256,591 $ 6,639 $ 130,955,726 $ 111,978,284 $ 131,212,317 $ 111,984,923

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series W Series W Units issued and outstanding, beginning of period 9,277 101 10,918,623 10,410,286 Number of units issued 15,441 544 896,985 739,216 Number of units reinvested 279 11 180,547 160,609 24,997 656 11,996,155 11,310,111 Number of units redeemed (196) - (303,584) (1,061,731)

Units issued and outstanding, end of period 24,801 656 11,692,571 10,248,380

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

18 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

Financial Statements Supplementary Schedules to the Notes to the Financial Statements of Cash Flows (Unaudited) Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 3,071,124 $ 4,934,644 Guardian Canadian Bond Fund (the “Fund”) was formed on January 3, 1997. The primary objective of the Adjustments for: Fund is the provision of a high level of current interest income while at the same time preserving capital Foreign exchange (gain) loss on cash (160,177) (39,886) and seeking opportunities for capital appreciation, primarily through investments in bonds, debentures, Net realized (gains) losses on sale of investments (1,188,158) (200,359) notes or other evidence of indebtedness. Pursuant to an amendment to the Fund’s Declaration of Trust, Change in unrealized (appreciation) effective September 16, 2013, the existing Series A units were renamed as Series W units. The initial depreciation in value of investments 156,126 (2,829,130) subscription for Series W units was made on September 30, 2013. The address of the Fund and the Change in unrealized (appreciation) Manager's principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in foreign currency contracts (88,325) - Note 2 (k): Foreign currency forward contracts Purchases of investments (48,442,639) (33,795,473) The following table is a summary of the currency derivatives of the Fund: Proceeds from sale of investments 37,726,844 36,042,852 CAD equivalent Unrealized gain As at June 30, 2015 USD Maturity Date (Increase) decrease in short-term securities, net 2,302,031 (374,302) of contracts (loss) (Increase) decrease in interest and dividends receivable (160,982) 3,444 Amounts sold $ - $ - $ - Increase (decrease) in accrued expenses due to Manager 30 1,469 Amounts purchased - - - Net cash from (used in) operating activities (6,784,126) 3,743,259 Net gain (loss) $ -

Cash flows from (used in) financing activities CAD equivalent Unrealized gain As at December 31, 2014 USD Maturity Date Distributions paid, net of reinvested distributions (188,020) (164,730) of contracts (loss) Proceeds from issuance of units 10,534,276 8,063,233 Amounts sold $ 400,000 $ 465,836 19-Feb-15 $ (2,236) Redemption of units (3,461,855) (11,626,709) Amounts purchased (2,200,000) (2,463,604) 19-Feb-15 (86,089) Net cash from (used in) financing activities 6,884,401 (3,728,206) Net gain (loss) $ (88,325)

Foreign exchange The Fund uses two counterparties for the dervivatives. The credit rating of the counterparties to the Net effect of foreign exchange on cash balances - (98) agreements was AA, and AA- throughout all periods.

Net increase (decrease) in cash 100,275 14,955 Cash, net (bank overdraft), beginning of period (152,458) (33,872) Cash, net (bank overdraft), end of period $ (52,183) $ (18,917)

Cash activity included in operating activities: Interest received $ 1,923,434 $ 1,910,529 Interest paid (72) (87) Dividends received, net of withholding taxes - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

19 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 2 (k): Offsetting of financial instruments In the normal course of business, the Fund enters into various master netting arrangements or other similar agreements that do not meet the criteria for offsetting in the Statements of Net Assets but still allow for the related amounts to be offset in certain circumstances, such as bankruptcy or termination of the contracts. The following table presents the recognized financial assets and financial liabilities that are offset, or subject to enforceable master netting agreements or other similar agreements but that are not offset, as at June 30, 2015 and December 31, 2014. The “Net” column shows what the impact on the Fund’s Statements of Net Assets would be if all set-off rights were exercised. Financial assets and liabilities Amounts offset Amounts not offset Net Gross assets/ Gross assets/ Net amounts Financial Cash collateral liabilites liabilites offset presented instruments received

As at June 30, 2015 Derivative assets $ - $ - $ - $ - $ - $ -

Derivative liabilities ------

As at December 31, 2014 Derivative assets $ - $ - $ - $ - $ - $ -

Derivative liabilities (88,325) - (88,325) - - (88,325)

The Fund is subject to enforceable master netting arrangements in the form of ISDA agreements with the counterparties to its derivative contracts. Under the terms of certain of these agreements, offsetting of derivative contracts is permitted for same day settlements when contracts with the same counterparty mature simultaneously, and in other cases only in the event of bankruptcy or default of either party to the agreement. The Fund’s arrangements with its brokers also permit offsetting of amounts receivable and payable in respect of securities purchased or sold in the normal course of business.

Note 3: Increase (decrease) in NAV from operations per unit per series Note 5: Income taxes The weighted average number of units outstanding during the period used to calculate the The Fund has the following tax losses available to be carried forward and applied against increase (decrease) in NAV from operations per unit per series are as follows: future capital gains or income: For the six months ended June 30 2015 2014 As at December 31, 2014 December 31, 2013 Series I 11,302,497 10,496,518 Capital losses $ - $ - Series W 17,210 434 Non-capital losses - -

Note 4: Operating expenses The losses expire on the following dates: The Manager currently charges to the Fund management fees and administration fees, and the annual Amount expiring Date of expiry rates of these fees are as follows: Non-capital losses $ - - Annual management fee rate 2015 2014 Series I 0.00% 0.00% Series W 1.00% 1.00%

Annual administration fee rate 2015 2014 Series I 0.04% 0.04% Series W 0.04% 0.04%

20 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ - $ - $ - - Australia - - GBP - - - - Brazil - - Euro - - - - Canada 98.9% 97.1% Other currencies - - - - China - - Net currency exposure $ - $ - $ - - France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ 2,138,739 $ (2,084,850) $ 53,889 0.0% Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ 2,138,739 $ (2,084,850) $ 53,889 0.0% Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, this would Taiwan - - have increased or decreased the Fund's NAV as follows: United Kingdom - - Currency exposure June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ - $ 3,000 Other countries - - % of NAV - 0.0% Short-term securities 0.4% 2.3% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 0.7% 0.6% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The table below summarizes the Fund's exposure to interest rate risk. The term to maturity of the Fund's interest rate sensitive investments are as follows: As at June 30, 2015 December 31, 2014 Investment sectors, as at June 30, 2015 December 31, 2014 Term to maturity: Canadian bonds Less than one month $ 159,165 $ 1,396,087 Federal and guaranteed 22.3% 26.6% One to three months 253,416 1,329,775 Provincial and guaranteed 34.4% 29.8% Three months to one year 61,782 50,533 Corporate 41.9% 40.4% One to five years 37,504,322 41,722,352 Mortgage-backed securities 0.3% 0.3% Over five years 92,284,917 76,123,882 Short-term securities 0.4% 2.3% Total interest rate sensitive investments $ 130,263,602 $ 120,622,629 Other net assets (liabilities) 0.7% 0.6% Total 100.0% 100.0% Note 8 (a) (ii): Interest sensitivity: If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held Note 8 (d): Credit risk: constant, the increase or decrease in the Fund’s NAV would amount to approximately: The table below summarizes the Fund's credit risk exposure grouped by credit As at June 30, 2015 December 31, 2014 ratings as a percentage of NAV: Interest sensitivity $ 2,451,000 $ 2,170,000 Rating, as at June 30, 2015 December 31, 2014 % of NAV 1.9% 1.8% Bonds: AAA 34.0% 35.9% Note 8 (a) (iii): Other price risk: AA 46.8% 39.8% The table below summarizes the Fund's exposure to other price risk: A 18.3% 22.0% As at June 30, 2015 December 31, 2014 BBB 0.5% - Other price risk $ - $ - BB - - % of NAV - - B - - CCC - - If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this D - - would have increased or decreased the Fund's NAV as follows: Unrated - - As at June 30, 2015 December 31, 2014 Short-term securities: Change in NAV $ - $ - R-1 High 0.3% 2.3% % of NAV - - R-1 Mid 0.1% 0.0% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

21 Guardian Canadian Bond Fund

financial statements | June 30, 2015

Guardian Canadian Bond Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 10: Securities lending The following is a summary of the fair value hierarchy for the Fund's investments: The securities lending income, the values of securities on loan, and the value of collateral held for such loans, are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total For the six months ended June 30 2015 2014 Equity investments $ - $ - $ - $ - Fixed-income investments - 129,789,239 - 129,789,239 Securities lending income $ 2,550 $ 1,509 Short-term securities 474,363 - - 474,363 Investment funds - - - - As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ 12,960,938 $ 19,685,990 Total $ 474,363 $ 129,789,239 $ - $ 130,263,602 Collateral held for securites on loan 13,608,986 20,670,292 Percentage of total investments 0.4% 99.6% - 100.0% Note 11: Related party unitholders Units of the Fund held by affiliates and officers of the Manager, or other investment funds As at December 31, 2014 Level 1 Level 2 Level 3 Total managed by the Manager are as follows: Equity investments $ - $ - $ - $ - As at June 30, 2015 December 31, 2014 Fixed-income investments - 117,846,235 - 117,846,235 Short-term securities 639,653 2,136,741 - 2,776,394 Series I - number of units 21,546 - Investment funds - - - - Series I - percentage of issued units 0.2% 0.0% Derivatives - assets - - - - Derivatives - liabilities - (88,325) - (88,325) Series W - number of units 106 104 Total $ 639,653 $ 119,894,651 $ - $ 120,534,304 Series W - percentage of issued units 0.4% 1.0% Percentage of total investments 0.5% 99.5% - 100.0% Note 12: Investments in non-consolidated structured entities The Fund has invested in non-consolidated entities ("NCE") and details of these investments are The summary of significant transfers between levels during the periods are as follows: as follows: For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Total net assets of Fair value of Fund's 30, 2015 Level 2 Level 1 Level 3 Level 2 the NCE investment in NCE Equity investments $ - $ - $ - $ - As at June 30, 2015 Fixed-income investments - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 474,363 Short-term securities - - - - Investment funds - - - - As at December 31, 2014 Derivatives - assets - - - - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 639,653 Derivatives - liabilities - - - - Total $ - $ - $ - $ -

For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to 30, 2014 Level 2 Level 1 Level 3 Level 2 Equity investments $ - $ - $ - $ - Fixed-income investments - - - - Short-term securities - - - - Investment funds - - - - Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ - $ - $ - $ -

22 Guardian Canadian Equity Fund

financial statements | June 30, 2015

Guardian Canadian Equity Fund

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015

Number of Number of Shares/ Units/ Average Fair Shares/ Units/ Average Fair Par Value Security Cost Value Par Value Security Cost Value

EQUITY INVESTMENTS - 98.1% INFORMATION TECHNOLOGY - 3.1% CONSUMER DISCRETIONARY - 11.7% 245,000 CGI Group Inc. $ 8,927,500 $ 11,968,250 223,600 Gildan Activewear Inc. * $ 4,990,732 $ 9,277,164 175,400 Magna International Inc. 6,014,608 12,295,540 MATERIALS - 12.1% 146,400 Quebecor Inc., Class B * 4,113,604 4,570,608 107,500 Agnico Eagle Mines Ltd. 4,196,514 3,811,950 367,000 Shaw Communications Inc., Class B * 9,301,087 9,982,400 64,000 Agrium Inc. 5,412,933 8,471,680 205,750 Thomson Reuters Corp. 8,759,167 9,785,470 98,200 Franco-Nevada Corp. 4,987,710 5,849,774 33,179,198 45,911,182 199,000 Goldcorp Inc. 5,838,776 4,033,730 CONSUMER STAPLES - 7.1% 103,800 Methanex Corp. * 5,081,212 7,236,936 173,700 Alimentation Couche Tard Inc., Class B 3,583,418 9,280,791 206,900 Silver Wheaton Corp. 4,899,320 4,479,321 86,800 Empire Co. Ltd., Class A 7,065,345 7,635,796 365,200 Teck Resources Ltd., Class B * 9,232,658 4,521,175 109,200 George Weston Ltd. 8,975,320 10,713,612 131,100 West Fraser Timber Co. Ltd. 7,250,375 8,997,393 19,624,083 27,630,199 46,899,498 47,401,959 ENERGY - 16.4% ROYALTY AND INCOME TRUST UNITS - 3.4% 233,052 Cameco Corp. 4,782,490 4,164,639 265,000 H&R Real Estate Investment Trust 6,378,447 5,946,600 297,000 Canadian Natural Resources Ltd. 10,983,028 10,068,300 272,100 RioCan REIT * 7,244,225 7,284,117 599,614 Cenovus Energy Inc. 14,515,033 11,974,292 13,622,672 13,230,717 167,152 Enbridge Inc. 7,978,767 9,763,348 TELECOMMUNICATION SERVICES - 2.9% 193,900 ShawCor Ltd. 7,862,430 7,094,801 104,900 Rogers Communications Inc., Class B 3,630,681 4,647,070 334,460 Suncor Energy Inc. 10,486,664 11,505,424 157,200 TELUS Corp. 5,849,418 6,764,316 190,854 TransCanada Corp. 9,667,803 9,687,749 9,480,099 11,411,386 66,276,215 64,258,553 UTILITIES - 2.9% FINANCIALS - 29.6% 326,100 Fortis Inc. 11,569,977 11,439,588 141,100 Bank of Montreal 9,042,497 10,442,811 Total equity investments 323,303,841 383,928,437 282,232 Bank of Nova Scotia 15,128,100 18,195,498 Transaction costs (246,246) - 350,737 Brookfield Asset Management Inc., Class A 11,206,956 15,306,163 Total investments - 98.1% 323,057,595 383,928,437 132,900 CI Financial Corp. 4,545,867 4,465,440 106,800 Intact Financial Corp. 6,011,381 9,269,172 SHORT-TERM SECURITIES - 2.3% 574,500 Manulife Financial Corp. 10,906,100 13,334,145 898,755 Guardian Canadian Short-Term Investment 246,100 Royal Bank of Canada 13,762,210 18,797,118 Fund, Series I 8,987,547 8,987,547 130,800 Sun Life Financial Inc. 5,200,280 5,454,360 Total short-term securities 8,987,547 8,987,547 389,404 Toronto-Dominion Bank 16,195,604 20,653,988 91,998,995 115,918,695 Other net liabilites - (0.4%) (1,433,600) INDUSTRIALS - 8.9% Net assets attributable to unitholders- 100.0% $ 391,482,384 672,800 CAE Inc. 8,492,588 10,004,536 189,000 Canadian National Railway Co. 8,983,955 13,619,340 310,800 Finning International Inc. 6,821,483 7,300,692 42,000 MacDonald Dettwiler & Associates Ltd. 3,806,025 3,833,340 28,104,051 34,757,908

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

23 Guardian Canadian Equity Fund

financial statements | June 30, 2015

Guardian Canadian Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 4,040,052 $ 3,674,205 Investments $ 383,928,437 $ 275,047,045 Interest for distribution purposes 30,994 39,177 Cash, net 27,547 243,620 Net realized gains (losses) on sale of investments 8,325,068 5,422,284 Due from brokers - - Change in unrealized appreciation Short-term securities 8,987,547 10,361,690 (depreciation) in value of investments (16,333,391) 21,221,002 Subscriptions receivable 39,082 45,718 Net gains (losses) on investments (3,937,277) 30,356,668 Interest and dividends receivable 530,703 477,072 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 393,513,316 286,175,145 Net gains (losses) on derivatives - - Securities lending income (Note 10) 8,495 8,633 Liabilities Foreign exchange gains (losses) on cash 7,130 (292) Current liabilities Total income (loss) (3,921,652) 30,365,009 Bank overdraft - - Due to brokers 1,966,269 364,991 Operating expenses (Note 4) Redemptions payable 200 17,559 Administration fee 288,644 245,623 Distributions payable - - Management fee 457 98 Accrued expenses due to Manager 64,463 47,903 Independent review committee costs 3,828 3,900 Unrealized depreciation on Interest charges 41 214 foreign currency contracts - - Transaction costs 154,428 41,358 2,030,932 430,453 Foreign withholding taxes - - Total operating expenses 447,398 291,193 Net assets attributable to unitholders ("NAV") $ 391,482,384 $ 285,744,692 Increase (decrease) in NAV from operations $ (4,369,050) $ 30,073,816

NAV per series Increase (decrease) in NAV from operations per series Series W $ 91,362 $ 37,289 Series W $ (2,573) $ 1,170 Series I 391,391,022 285,707,403 Series I (4,366,477) 30,072,646

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.44 $ 10.48 Series W $ (0.48) $ 1.07 Series I 139.24 138.61 Series I (1.91) 15.31

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

24 Guardian Canadian Equity Fund

financial statements | June 30, 2015

Guardian Canadian Equity Fund

NAV, beginning of period $ 37,289 $ 11,151 $ 285,707,403 $ 265,687,468 $ 285,744,692 $ 265,698,619

Increase (decrease) in NAV from operations (2,573) 1,170 (4,366,477) 30,072,646 (4,369,050) 30,073,816

Distributions to unitholders: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units 56,888 - 131,845,182 7,539,928 131,902,070 7,539,928 Reinvested distributions ------Redemption of units (242) - (21,795,086) (15,423,801) (21,795,328) (15,423,801) 56,646 - 110,050,096 (7,883,873) 110,106,742 (7,883,873)

Net increase (decrease) in NAV 54,073 1,170 105,683,619 22,188,773 105,737,692 22,189,943

NAV, end of period $ 91,362 $ 12,321 $ 391,391,022 $ 287,876,241 $ 391,482,384 $ 287,888,562

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 3,559 1,090 2,061,213 1,978,064 Number of units issued 5,215 - 906,241 53,436 Number of units reinvested - - - - 8,774 1,090 2,967,454 2,031,500 Number of units redeemed (23) - (156,503) (108,007)

Units issued and outstanding, end of period 8,751 1,090 2,810,951 1,923,493

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

25 Guardian Canadian Equity Fund

financial statements | June 30, 2015

Guardian Canadian Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ (4,369,050) $ 30,073,816 Guardian Canadian Equity Fund (the “Fund”) was formed on December 1, 1985 . The primary objective Adjustments for: of the Fund is the achievement of long-term growth of capital while maintaining steady current dividend Foreign exchange (gain) loss on cash (7,130) 292 income, primarily through the investment in common shares or other equity-related investments issued by Net realized (gains) losses on sale of investments (8,325,068) (5,422,284) Canadian companies. Pursuant to an amendment to the Fund’s Declaration of Trust, effective September Change in unrealized (appreciation) 16, 2013, the existing Series A units were renamed as Series W units. The initial subscription for Series depreciation in value of investments 16,333,391 (21,221,002) W units was made on September 30, 2013. The address of the Fund and the Manager's principal Change in unrealized (appreciation) business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in foreign currency contracts - - Purchases of investments (171,941,696) (15,581,493) Note 3: Increase (decrease) in NAV from operations per unit per series Proceeds from sale of investments 56,659,661 21,140,275 The weighted average number of units outstanding during the period used to calculate the increase (Increase) decrease in short-term securities, net 1,374,143 (969,177) (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in interest and dividends receivable (53,631) (134,932) For the six months ended June 30 2015 2014 Increase (decrease) in accrued expenses due to Manager 16,560 6,079 Series I 2,281,831 1,964,127 Net cash from (used in) operating activities (110,312,820) 7,891,574 Series W 5,346 1,090

Cash flows from (used in) financing activities Note 4: Operating expenses Distributions paid, net of reinvested distributions - - The Manager currently charges to the Fund management fees and administration fees, and the annual Proceeds from issuance of units 131,908,706 7,315,602 rates of these fees are as follows: Redemption of units (21,812,687) (15,422,501) Annual management fee rate 2015 2014 Net cash from (used in) financing activities 110,096,019 (8,106,899) Series I 0.00% 0.00% Series W 1.50% 1.50% Foreign exchange Net effect of foreign exchange on cash balances 728 (179) Annual administration fee rate 2015 2014 Series I 0.16% 0.16% Net increase (decrease) in cash (216,073) (215,504) Series W 0.16% 0.16% Cash, net (bank overdraft), beginning of period 243,620 (57,159) Cash, net (bank overdraft), end of period $ 27,547 $ (272,663) Note 5: Income taxes The Fund has the following tax losses available to be carried forward and applied against future capital Cash activity included in operating activities: gains or income: Interest received $ 30,994 $ 39,177 As at December 31, 2014 December 31, 2013 Interest paid (41) (214) Capital losses $ - $ - Dividends received, net of withholding taxes 3,986,421 3,808,809 Non-capital losses - -

The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

26 Guardian Canadian Equity Fund

financial statements | June 30, 2015

Guardian Canadian Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 158,096 $ - $ 158,096 0.0% Australia - - GBP - - - - Brazil - - Euro - - - - Canada 98.1% 96.3% Other currencies - - - - China - - Net currency exposure $ 158,096 $ - $ 158,096 0.0% France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ - $ - $ - - Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ - $ - $ - - Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Taiwan - - this would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ 8,000 $ - Other countries - - % of NAV 0.0% - Short-term securities 2.3% 3.6% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) (0.4%) 0.1% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 11.7% 13.4% Consumer staples 7.1% 6.5% Note 8 (a) (iii): Other price risk: Energy 16.4% 18.3% The table below summarizes the Fund's exposure to other price risk: Financials 29.6% 28.4% As at June 30, 2015 December 31, 2014 Health care - - Other price risk $ 383,928,437 $ 275,047,045 Industrials 8.9% 9.0% % of NAV 98.1% 96.3% Information technology 3.1% 3.0% Materials 12.1% 10.8% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, Royalty and income trust units 3.4% 2.0% this would have increased or decreased the Fund's NAV as follows: Telecommunication services 2.9% 2.5% As at June 30, 2015 December 31, 2014 Utilities 2.9% 2.4% Change in NAV $ 19,196,000 $ 13,752,000 Short-term securities 2.3% 3.6% % of NAV 4.9% 4.8% Other net assets (liabilities) (0.4%) 0.1% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

Note 8 (d): Credit risk: The Fund is exposed to credit risk through its investments in investment grade short-term securities, and in a mutual fund which holds investments in investment-grade short-term securities.

27 Guardian Canadian Equity Fund

financial statements | June 30, 2015

Guardian Canadian Equity Fund

The summary of significant transfers between levels during the periods are as follows: Note 12: Investments in non-consolidated structured entities For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to The Fund has invested in non-consolidated entities ("NCE") and details of these investments are 30, 2015 Level 2 Level 1 Level 3 Level 2 as follows: Equity investments $ - $ - $ - $ - Total net assets of Fair value of Fund's Fixed-income investments - - - - the NCE investment in NCE Short-term securities - - - - As at June 30, 2015 Investment funds - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 8,987,547 Derivatives - assets - - - - Derivatives - liabilities - - - - As at December 31, 2014 Total $ - $ - $ - $ - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 10,361,690

28 Guardian Canadian Growth Equity Fund

financial statements | June 30, 2015

Guardian Canadian Growth Equity Fund

EQUITY INVESTMENTS - 94.6% HEALTH CARE - 1.3% CONSUMER DISCRETIONARY - 12.6% 65,000 Catamaran Corp. $ 3,317,650 $ 4,961,450 84,700 AutoCanada Inc. * $ 6,017,512 $ 3,498,110 225,300 BRP Inc. 6,578,268 6,576,507 INDUSTRIALS - 6.7% 93,200 Dollarama Inc. 3,205,274 7,055,240 2,659,900 Bombardier Inc., Class B * 6,154,506 5,984,775 352,208 Gildan Activewear Inc. * 7,419,223 14,613,110 510,800 CAE Inc. 7,173,351 7,595,596 187,200 Imax Corp. 4,896,359 9,416,395 179,900 Canadian National Railway Co. 10,682,806 12,963,595 124,500 Magna International Inc. 3,873,618 8,727,450 24,010,663 26,543,966 31,990,254 49,886,812 INFORMATION TECHNOLOGY - 9.7% CONSUMER STAPLES - 7.7% 270,400 CGI Group Inc. * 9,380,589 13,209,040 225,543 Alimentation Couche Tard Inc., Class B 4,153,296 12,050,762 20,100 Constellation Software Inc. 2,393,505 9,966,786 153,800 Loblaw Cos. Ltd. 7,549,900 9,701,704 513,300 Mitel Networks Corp. 6,437,167 5,687,364 370,900 Maple Leaf Foods Inc. 5,199,436 8,786,621 186,900 Open Text Corp. 8,131,395 9,481,437 16,902,632 30,539,087 26,342,656 38,344,627 ENERGY - 15.9% MATERIALS - 11.1% 775,100 Canadian Energy Services & Technology Corp. * 5,083,655 5,580,720 682,200 First Quantum Minerals Ltd. 12,497,660 11,140,326 348,155 Canadian Natural Resources Ltd. 12,611,470 11,802,455 332,487 Goldcorp Inc. 9,595,108 6,739,511 203,500 Enbridge Inc. 9,310,773 11,886,435 712,600 HudBay Minerals Inc. 6,617,279 7,411,040 472,390 MEG Energy Corp. * 13,891,970 9,636,756 1,309,200 New Gold Inc. * 9,210,638 4,385,820 613,700 NuVista Energy Ltd. 5,825,305 4,105,653 188,400 Silver Wheaton Corp. 4,196,632 4,078,770 254,000 Paramount Resources Ltd., Class A 9,214,518 7,289,800 152,200 West Fraser Timber Co. Ltd. 8,190,893 10,445,486 158,100 Pembina Pipeline Corp. 6,947,831 6,382,497 50,308,210 44,200,953 371,000 Seven Generations Energy Ltd. * 7,590,396 6,054,720 Total equity investments 328,732,457 373,816,218 70,475,918 62,739,036 Transaction costs (404,917) - FINANCIALS - 29.6% Total investments - 94.6% 328,327,540 373,816,218 275,300 Bank of Montreal 22,747,006 20,374,953 351,205 Bank of Nova Scotia 21,089,769 22,642,186 SHORT-TERM SECURITIES - 5.6% 181,300 CI Financial Corp. 6,036,532 6,091,680 2,216,497 Guardian Canadian Short-Term Investment 436,700 Element Financial Corp. 5,431,688 8,624,825 Fund, Series I 22,164,966 22,164,966 5,700 FirstService Corp. 182,480 197,904 Total short-term securities 22,164,966 22,164,966 188,700 IGM Financial Inc. 9,554,277 7,506,486 110,385 Intact Financial Corp. 6,860,010 9,580,314 Other net liabilites - (0.3%) (1,155,547) 697,000 Manulife Financial Corp. * 12,199,673 16,177,370 Net assets attributable to unitholders- 99.9% $ 394,825,637 478,970 Toronto-Dominion Bank 21,283,039 25,404,569 105,384,474 116,600,287

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

29 Guardian Canadian Growth Equity Fund

financial statements | June 30, 2015

Guardian Canadian Growth Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 3,522,046 $ 3,230,335 Investments $ 373,816,218 $ 386,745,370 Interest for distribution purposes 73,592 64,123 Cash, net 18,046 - Net realized gains (losses) on sale of investments 17,337,365 10,894,413 Due from brokers - 295,000 Change in unrealized appreciation Short-term securities 22,164,966 17,851,399 (depreciation) in value of investments (4,371,031) 29,270,251 Subscriptions receivable 17,516 79,064 Net gains (losses) on investments 16,561,972 43,459,122 Interest and dividends receivable 329,888 339,890 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 396,346,634 405,310,723 Net gains (losses) on derivatives - - Securities lending income (Note 10) 29,201 17,739 Liabilities Foreign exchange gains (losses) on cash 22,582 (193) Current liabilities Total income (loss) 16,613,755 43,476,668 Bank overdraft - 290,287 Due to brokers 1,444,614 - Operating expenses (Note 4) Redemptions payable 2,000 - Administration fee 402,435 351,757 Distributions payable - 4,229 Management fee 1,313 172 Accrued expenses due to Manager 74,383 74,917 Independent review committee costs 5,372 4,847 Unrealized depreciation on Interest charges 75 544 foreign currency contracts - - Transaction costs 200,747 140,756 1,520,997 369,433 Foreign withholding taxes - - Total operating expenses 609,942 498,076 Net assets attributable to unitholders ("NAV") $ 394,825,637 $ 404,941,290 Increase (decrease) in NAV from operations $ 16,003,813 $ 42,978,592

NAV per series Increase (decrease) in NAV from operations per series Series W $ 194,214 $ 89,034 Series W $ 4,383 $ 2,356 Series I 394,631,423 404,852,256 Series I 15,999,430 42,976,236

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 11.25 $ 10.91 Series W $ 0.31 $ 1.30 Series I 30.94 29.76 Series I 1.21 3.67

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

30 Guardian Canadian Growth Equity Fund

financial statements | June 30, 2015

Guardian Canadian Growth Equity Fund

NAV, beginning of period $ 89,034 $ 1,078 $ 404,852,256 $ 319,007,384 $ 404,941,290 $ 319,008,462

Increase (decrease) in NAV from operations 4,383 2,356 15,999,430 42,976,236 16,003,813 42,978,592

Distributions to unitholders from: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units 101,084 31,169 20,866,640 37,954,337 20,967,724 37,985,506 Reinvested distributions - - 4,229 - 4,229 - Redemption of units (287) (130) (47,091,132) (23,232,597) (47,091,419) (23,232,727) 100,797 31,039 (26,220,263) 14,721,740 (26,119,466) 14,752,779

Net increase (decrease) in NAV 105,180 33,395 (10,220,833) 57,697,976 (10,115,653) 57,731,371

NAV, end of period $ 194,214 $ 34,473 $ 394,631,423 $ 376,705,360 $ 394,825,637 $ 376,739,833

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 8,160 101 13,602,828 11,106,937 Number of units issued 9,128 2,808 683,006 1,267,785 Number of units reinvested - - 358 - 17,288 2,909 14,286,192 12,374,722 Number of units redeemed (25) (10) (1,530,421) (738,094)

Units issued and outstanding, end of period 17,263 2,899 12,755,771 11,636,628

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

31 Guardian Canadian Growth Equity Fund

financial statements | June 30, 2015

Guardian Canadian Growth Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 16,003,813 $ 42,978,592 Guardian Canadian Growth Equity Fund (the “Fund”) was formed on July 31, 1986. The primary objective Adjustments for: of the Fund is the achievement of long-term growth of capital, primarily through the investment in the Foreign exchange (gain) loss on cash (22,582) 193 Canadian issuers with a growth orientation that are reasonably priced within the market. Pursuant to an Net realized (gains) losses on sale of investments (17,337,365) (10,894,413) amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Series A units Change in unrealized (appreciation) were renamed as Series W units. The initial subscription for Series W units was made on September 30, depreciation in value of investments 4,371,031 (29,270,251) 2013. The address of the Fund and the Manager's principal business office is Suite 3100, 199 Bay Change in unrealized (appreciation) Street, Toronto, Ontario, M5L 1E8. depreciation in foreign currency contracts - - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (47,966,946) (64,318,239) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments 75,625,628 44,464,545 (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in short-term securities, net (4,313,567) 2,180,877 For the six months ended June 30 2015 2014 (Increase) decrease in interest and dividends receivable 10,002 (254,685) Series I 13,244,986 11,713,373 Increase (decrease) in accrued expenses due to Manager (534) 13,123 Series W 14,239 1,806 Net cash from (used in) operating activities 26,369,480 (15,100,258) Note 4: Operating expenses Cash flows from (used in) financing activities The Manager currently charges to the Fund management fees and administration fees, and the annual Distributions paid, net of reinvested distributions - - rates of these fees are as follows: Proceeds from issuance of units 21,029,272 37,906,440 Annual management fee rate 2015 2014 Redemption of units (47,089,419) (23,226,601) Series I 0.00% 0.00% Net cash from (used in) financing activities (26,060,147) 14,679,839 Series W 1.50% 1.50%

Foreign exchange Annual administration fee rate 2015 2014 Net effect of foreign exchange on cash balances (1,000) (31) Series I 0.18% 0.18% Series W 0.18% 0.18% Net increase (decrease) in cash 308,333 (420,450) Cash, net (bank overdraft), beginning of period (290,287) 9,778 Note 5: Income taxes Cash, net (bank overdraft), end of period $ 18,046 $ (410,672) The Fund has the following tax losses available to be carried forward and applied against future capital gains or income: Cash activity included in operating activities: As at December 31, 2014 December 31, 2013 Interest received $ 73,592 $ 64,123 Capital losses $ - $ 1,242,679 Interest paid (75) (544) Non-capital losses - - Dividends received, net of withholding taxes 3,532,048 2,970,432 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

32 Guardian Canadian Growth Equity Fund

financial statements | June 30, 2015

Guardian Canadian Growth Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 25,718 $ - $ 25,718 0.0% Australia - - GBP - - - - Brazil - - Euro - - - - Canada 94.7% 95.5% Other currencies - - - - China - - Net currency exposure $ 25,718 $ - $ 25,718 0.0% France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ - $ - $ - - Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ - $ - $ - $ - Spain - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, this Taiwan - - would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ 1,000 $ - Other countries - - % of NAV 0.0% - Short-term securities 5.6% 4.4% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) (0.3%) 0.1% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 12.6% 13.5% Consumer staples 7.7% 7.6% Note 8 (a) (iii): Other price risk: Energy 15.9% 16.1% The table below summarizes the Fund's exposure to other price risk: Financials 29.6% 28.2% As at June 30, 2015 December 31, 2014 Health care 1.3% 3.6% Other price risk $ 373,816,218 $ 386,745,370 Industrials 6.7% 6.1% % of NAV 94.7% 95.5% Information technology 9.7% 9.0% Materials 11.1% 11.4% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this Royalty and income trust units - - would have increased or decreased the Fund's NAV as follows: Telecommunication services - - As at June 30, 2015 December 31, 2014 Utilities - - Change in NAV $ 18,691,000 $ 19,337,000 Short-term securities 5.6% 4.4% % of NAV 4.7% 4.8% Other net assets (liabilities) (0.3%) 0.1% In practice, the actual trading results could differ, and the difference could be material. Total 99.9% 100.0%

33 Guardian Canadian Growth Equity Fund

financial statements | June 30, 2015

Guardian Canadian Growth Equity Fund

The summary of significant transfers between levels during the periods are as follows: Note 12: Investments in non-consolidated structured entities For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to The Fund has invested in non-consolidated entities ("NCE") and details of these investments are 30, 2015 Level 2 Level 1 Level 3 Level 2 as follows: Equity investments $ 9,416,395 $ - $ - $ - Total net assets of Fair value of Fund's Fixed-income investments - - - - the NCE investment in NCE Short-term securities - - - - As at June 30, 2015 Investment funds - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 22,164,966 Derivatives - assets - - - - Derivatives - liabilities - - - - As at December 31, 2014 Total $ 9,416,395 $ - $ - $ - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 17,851,399

34 Guardian Canadian Short-Term Investment Fund

financial statements | June 30, 2015

Guardian Canadian Short-Term Investment Fund

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015 Number of Number of Shares/ Units/ Amortized Fair Shares/ Units/ Amortized Fair Par Value Security Cost Value Par Value Security Cost Value

CANADIAN SHORT-TERM INVESTMENTS - 95.2% BANKERS' ACCEPTANCES - Continued TREASURY BILLS - 49.1% 10,700,000 Royal Bank of Canada 20,400,000 Government of Canada 0.83%, September 2, 2015 $ 10,684,620 $ 10,684,620 0.57%, July 2, 2015 $ 20,399,681 $ 20,399,681 7,100,000 Toronto-Dominion Bank 9,200,000 Government of Canada 0.83%, July 20, 2015 7,096,943 7,096,943 0.58%, July 6, 2015 9,199,264 9,199,264 6,000,000 Toronto-Dominion Bank 16,400,000 Government of Canada * 0.84%, August 7, 2015 5,994,894 5,994,894 0.55%, July 16, 2015 16,396,123 16,396,123 8,000,000 Toronto-Dominion Bank 25,300,000 Government of Canada 0.85%, September 15, 2015 7,985,857 7,985,857 0.47%, August 13, 2015 25,283,126 25,283,126 4,800,000 Toronto-Dominion Bank 10,600,000 Government of Canada 0.88%, November 2, 2015 4,785,704 4,785,704 0.65%, August 27, 2015 10,589,441 10,589,441 115,070,521 115,070,521 11,500,000 Government of Canada * PROMISSORY NOTES - 8.5% 0.58%, September 10, 2015 11,486,238 11,486,238 12,000,000 Province of Alberta 10,000,000 Government of Canada * 0.74%, July 28, 2015 11,993,425 11,993,425 0.48%, September 24, 2015 9,988,870 9,988,870 8,000,000 Province of British Columbia 12,675,000 Government of Canada * 0.69%, July 10, 2015 7,998,644 7,998,644 0.66%, October 8, 2015 12,652,350 12,652,350 6,000,000 Province of British Columbia 10,000,000 Government of Canada * 0.74%, September 1, 2015 5,992,471 5,992,471 0.63%, November 5, 2015 9,977,997 9,977,997 25,984,540 25,984,540 8,800,000 Province of Ontario Total Canadian short-term investments 291,296,899 291,296,899 1.04%, July 8, 2015 8,798,254 8,798,254 3,500,000 Province of Ontario CANADIAN BONDS - 4.8% 0.64%, August 12, 2015 3,497,428 3,497,428 CORPORATE - 4.8% 7,500,000 Province of Ontario 5,000,000 Bank of Nova Scotia, FRN 0.76%, November 25, 2015 7,477,140 7,477,140 1.35%, September 18, 2015 5,002,887 5,002,887 4,500,000 Province of Quebec 5,000,000 Canadian Imperial Bank of Commerce, FRN 0.75%, August 14, 2015 4,495,926 4,495,926 1.06%, January 15, 2016 5,000,000 5,000,000 150,241,838 150,241,838 5,000,000 Royal Bank of Canada, FRN BANKERS' ACCEPTANCES - 37.6% 1.07%, September 18, 2015 5,000,000 5,000,000 9,700,000 Bank of Nova Scotia Total Canadian bonds 15,002,887 15,002,887 0.83%, July 23, 2015 9,695,159 9,695,159 Total investments - 100.0% 306,299,786 306,299,786 13,840,000 Bank of Nova Scotia 0.85%, September 18, 2015 13,814,744 13,814,744 Other net assets - 0.0% 115,643 5,200,000 Canadian Imperial Bank of Commerce Net assets attributable to unitholders- 100.0% $ 306,415,429 0.84%, July 8, 2015 5,199,167 5,199,167 6,000,000 Canadian Imperial Bank of Commerce 0.83%, July 20, 2015 5,997,413 5,997,413 6,000,000 Canadian Imperial Bank of Commerce 0.83%, August 5, 2015 5,995,217 5,995,217 6,000,000 Canadian Imperial Bank of Commerce 0.83%, August 17, 2015 5,993,602 5,993,602 9,100,000 Bank of Montreal 0.88%, August 27, 2015 9,087,975 9,087,975 5,000,000 Bank of Montreal 0.84%, September 2, 2015 4,992,765 4,992,765 3,000,000 Bank of Montreal 0.84%, September 28, 2015 2,993,868 2,993,868 5,000,000 Bank of Montreal 0.85%, September 30, 2015 4,989,442 4,989,442 6,700,000 Royal Bank of Canada 0.84%, August 19, 2015 6,692,468 6,692,468 3,075,000 Royal Bank of Canada 0.84%, August 31, 2015 3,070,683 3,070,683

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

35 Guardian Canadian Short-Term Investment Fund

financial statements | June 30, 2015

Guardian Canadian Short-Term Investment Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ - $ - Investments $ 306,299,786 $ 253,817,101 Interest for distribution purposes 1,067,994 1,135,368 Cash, net 110,240 1,272 Net realized gains (losses) on sale of investments - - Due from broker - - Change in unrealized appreciation - Subscriptions receivable - - (depreciation) in value of investments - - Interest and dividends receivable 6,148 5,343 Net gains (losses) on investments 1,067,994 1,135,368 Unrealized appreciation on Net realized gains (losses) on foreign currency contracts - - foreign currency contracts - - Change in unrealized appreciation 306,416,174 253,823,716 (depreciation) on foreign currency contracts - - Net gains (losses) on derivatives - - Liabilities Securities lending income (Note 10) 14,405 8,750 Current liabilities Foreign exchange gains (losses) on cash - - Bank overdraft - - Total income (loss) 1,082,399 1,144,118 Due to broker - - Redemptions payable - - Operating expenses (Note 4) Distributions payable - 543 Administration fee 27,143 24,141 Accrued expenses due to Manager 745 6,987 Management fee 176 93 Unrealized depreciation on Independent review committee costs 3,122 2,908 foreign currency contracts - - Interest charges 2,652 400 745 7,530 Transaction costs (Note 5) - - Foreign withholding taxes - - Total operating expenses 33,093 27,542 Net assets attributable to unitholders ("NAV") $ 306,415,429 $ 253,816,186 Increase (decrease) in NAV from operations $ 1,049,306 $ 1,116,576

NAV per series Increase (decrease) in NAV from operations per series Series W $ 124,813 $ 56,488 Series W $ 116 $ 63 Series I 306,290,616 253,759,698 Series I 1,049,190 1,116,513

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.00 $ 10.00 Series W $ 0.02 $ 0.02 Series I 10.00 10.00 Series I 0.04 0.05

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

36 Guardian Canadian Short-Term Investment Fund

financial statements | June 30, 2015

Guardian Canadian Short-Term Investment Fund

NAV, beginning of period $ 56,488 $ 1,002 $ 253,759,698 $ 197,884,023 $ 253,816,186 $ 197,885,025

Increase (decrease) in NAV from operations 116 63 1,049,190 1,116,513 1,049,306 1,116,576

Distributions to unitholders: Income (113) (60) (1,049,180) (1,116,510) (1,049,293) (1,116,570) Capital gains ------(113) (60) (1,049,180) (1,116,510) (1,049,293) (1,116,570)

Redeemable unit transactions: Proceeds from issuance of units 71,209 47,675 588,187,843 551,065,340 588,259,052 551,113,015 Reinvested distributions 113 60 1,049,180 1,116,510 1,049,293 1,116,570 Redemption of units (3,000) - (536,706,115) (534,665,052) (536,709,115) (534,665,052) 68,322 47,735 52,530,908 17,516,798 52,599,230 17,564,533

Net increase (decrease) in NAV 68,325 47,738 52,530,918 17,516,801 52,599,243 17,564,539

NAV, end of period $ 124,813 $ 48,740 $ 306,290,616 $ 215,400,824 $ 306,415,429 $ 215,449,564

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 5,649 100 25,375,969 19,788,402 Number of units issued 7,121 4,768 58,818,785 55,106,534 Number of units reinvested 11 6 104,918 111,651 12,781 4,874 84,299,672 75,006,587 Number of units redeemed (300) - (53,670,611) (53,466,505)

Units issued and outstanding, end of period 12,481 4,874 30,629,061 21,540,082

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

37 Guardian Canadian Short-Term Investment Fund

financial statements | June 30, 2015

Guardian Canadian Short-Term Investment Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 1,049,306 $ 1,116,576 Guardian Canadian Short-Term Investment Fund (the “Fund”) was formed on January 28, 2009 and Adjustments for: commenced operations on February 3, 2009. The objective of the Fund is the preservation of capital Foreign exchange (gain) loss on cash - - together with earning income, through investments in high quality, short-term fixed-income securities. Net realized (gains) losses on sale of investments - - Pursuant to an amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Change in unrealized (appreciation) Series A units were renamed as Series W units. The address of the Fund and the Manager's principal depreciation in value of investments - - business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) depreciation in foreign currency contracts - - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (729,666,251) (596,681,393) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments 677,183,566 580,313,287 (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in interest and dividends receivable (805) 11,169 For the six months ended June 30 2015 2014 Increase (decrease) in accrued expenses due to Manager (6,242) 2,987 Series I 25,177,767 21,999,946 Net cash from (used in) operating activities (51,440,426) (15,237,374) Series W 6,446 2,657

Cash flows from (used in) financing activities Note 4: Operating expenses Distributions paid, net of reinvested distributions (543) - The Manager currently charges to the Fund management fees and administration fees, and the annual Proceeds from issuance of units 588,259,052 551,113,015 rates of these fees are as follows: Redemption of units (536,709,115) (534,665,052) Annual management fee rate 2015 2014 Net cash from (used in) financing activities 51,549,394 16,447,963 Series I 0.00% 0.00% Series W 0.50% 0.50% Foreign exchange Net effect of foreign exchange on cash balances - - Annual administration fee rate 2015 2014 Series I 0.02% 0.02% Net increase (decrease) in cash 108,968 1,210,589 Series W 0.02% 0.02% Cash, net (bank overdraft), beginning of period 1,272 875,511 Cash, net (bank overdraft), end of period $ 110,240 $ 2,086,100 Note 5: Income taxes The Fund has the following tax losses available to be carried forward and applied against future capital Cash activity included in operating activities: gains or income: Interest received $ 1,067,189 $ 1,146,537 As at December 31, 2014 December 31, 2013 Interest paid (2,652) (400) Capital losses $ 196 $ 196 Dividends received, net of withholding taxes - - Non-capital losses - -

The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

38 Guardian Canadian Short-Term Investment Fund

financial statements | June 30, 2015

Guardian Canadian Short-Term Investment Fund

Note 8 (a) (ii): Interest sensitivity: Note 8 (d): Credit risk: If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held The table below summarizes the Fund's credit risk exposure grouped by credit constant, the decrease or increase in the Fund’s NAV would amount to approximately: ratings as a percentage of fixed-income securities: As at June 30, 2015 December 31, 2014 Rating, as at June 30, 2015 December 31, 2014 Interest sensitivity $ 107,000 $ 76,000 Bonds: % of NAV 0.0% 0.0% AAA - - AA 4.8% 3.9% Note 8 (a) (iii): Other price risk: A - - The table below summarizes the Fund's exposure to other price risk: BBB - - As at June 30, 2015 December 31, 2014 BB - - Other price risk $ - $ - B - - % of NAV - - CCC - - D - - If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this Unrated - - would have increased or decreased the Fund's NAV as follows: Short-term securities: As at June 30, 2015 December 31, 2014 R-1 High 87.2% 88.5% Change in NAV $ - $ - R-1 Mid 8.0% 7.6% % of NAV - - Total 100.0% 100.0% In practice, the actual trading results could differ, and the difference could be material.

39 Guardian Canadian Short-Term Investment Fund

financial statements | June 30, 2015

Guardian Canadian Short-Term Investment Fund

The summary of significant transfers between levels during the periods are as follows: For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to 30, 2015 Level 2 Level 1 Level 3 Level 2 Equity investments $ - $ - $ - $ - Fixed-income investments - - - - Short-term securities - - - - Investment funds - - - - Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ - $ - $ - $ -

40 Guardian Canadian Small/Mid Cap Equity Fund

financial statements | June 30, 2015

Guardian Canadian Small/Mid Cap Equity Fund

EQUITY INVESTMENTS - 95.1% INFORMATION TECHNOLOGY - 11.1% CONSUMER DISCRETIONARY - 16.3% 7,200 Avigilon Corp. $ 118,192 $ 121,248 5,600 Dorel Industries Inc., Class B $ 175,062 $ 187,096 63,800 BSM Technologies Inc. 154,868 63,800 17,100 Easyhome Ltd. 230,410 333,450 50,000 COM DEV International Ltd. 192,779 288,500 19,400 Performance Sports Group Ltd. 186,055 436,112 17,100 Computer Modelling Group Ltd. 120,198 216,486 20,600 Perk.com Inc., Subscription Receipt 128,750 128,750 7,700 Information Services Corp. 113,486 115,500 29,000 Sirius XM Canada Holdings Inc. * 158,515 154,570 16,992 Mitel Networks Corp. 164,672 188,271 13,100 Stingray Digital Group Inc. 81,875 94,975 410,700 Sensio Technologies Inc. 99,529 82,140 11,000 Whistler Blackcomb Holdings Inc. 142,646 216,700 9,600 Urthecast Corp. 43,319 37,824 11,500 Yellow Pages Ltd. 223,471 214,245 21,800 UrtheCast Corp., Subscription Receipt 87,200 85,892 1,326,784 1,765,898 1,094,243 1,199,661 ENERGY - 13.4% MATERIALS - 17.9% 38,800 Bellatrix Exploration Ltd. * 212,663 112,908 12,200 Altius Minerals Corp. * 171,004 176,290 24,600 Birchcliff Energy Ltd. 200,189 171,462 120,400 Capstone Mining Corp. 285,760 146,888 82,200 Ithaca Energy Inc. 157,206 86,310 175,000 Constellation Copper Corp. 72,625 - 50,600 Pine Cliff Energy Ltd. 72,074 72,864 24,100 New Gold Inc. 111,404 80,735 14,209 Storm Resources Ltd. 53,981 67,490 8,780 Osisko Gold Royalties Ltd. 143,427 138,022 193,400 Tidewater Midstream and Infrastructure Ltd., 49,800 Polaris Minerals Corp. 186,162 104,580 Subscription Receipt 261,090 320,221 30,000 Primero Mining Corp. 194,856 146,100 41,060 TORC Oil & Gas Ltd. * 441,169 357,222 144,466 RB Energy Inc. 181,728 - 26,800 Western Energy Services Corp. 209,766 155,172 263,200 Romarco Minerals Inc. 198,328 111,860 34,265 Yangarra Resources Ltd. 106,631 43,860 33,500 Sandstorm Gold Ltd. * 152,959 123,615 37,900 Yoho Resources Inc. 75,736 15,539 14,400 Stella-Jones Inc. 199,939 597,888 39,200 Yoho Resources Inc., Rights (16Oct15) 24,696 16,072 169,100 Stornoway Diamond Corp. 118,101 138,662 20,867 Zargon Oil & Gas Inc. * 213,790 52,794 76,650 Stornoway Diamond Corp., Warrants (July 8, 2016) - 8,048 2,028,991 1,471,914 162,500 Torex Gold Resources Inc. 209,229 183,625 FINANCIALS - 23.3% 2,225,522 1,956,313 11,900 Callidus Capital Corp. 179,819 166,005 TELECOMMUNICATION SERVICES - 1.4% 6,400 Canadian Western Bank * 178,178 184,128 46,500 Axia NetMedia Corp. 130,044 152,520 4,800 Colliers International Group Inc. 112,511 229,440 Total equity investments 9,565,594 10,354,767 18,000 Element Financial Corp. 131,106 355,500 Transaction costs - - 5,700 Equitable Group Inc. * 186,468 349,239 Total investments - 95.1% 9,565,594 10,354,767 4,800 FirstService Corp. 70,569 166,656 6,500 GDI Integrated Facility Services Inc. 104,000 125,970 SHORT-TERM SECURITIES - 8.0% 8,100 Genworth MI Canada Inc. * 205,808 265,680 87,282 Guardian Canadian Short-Term Investment 21,600 Killam Properties Inc. * 198,600 220,104 Fund, Series I 872,821 872,821 43,000 Tricon Capital Group Inc. * 286,823 469,130 Total short-term securities 872,821 872,821 1,653,882 2,531,852 HEALTH CARE - 3.9% Other net liabilites - (3.1%) (341,285) 51,200 Merus Labs International Inc. 89,080 150,528 Net assets attributable to unitholders- 100.0% $ 10,886,303 15,300 Regal Lifestyle Communities Inc. 147,464 183,447 131,100 Trimel Pharmaceuticals Corp. 137,042 89,148 373,586 423,123 INDUSTRIALS - 7.8% 7,100 Black Diamond Group Ltd. 109,494 124,321 7,000 Lumenpulse Inc. 121,208 105,280 34,500 People Corp. 100,540 154,905 9,600 Stantec Inc. 196,391 350,400 5,500 Wajax Corp. * 204,909 118,580 732,542 853,486

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

41 Guardian Canadian Small/Mid Cap Equity Fund

financial statements | June 30, 2015

Guardian Canadian Small/Mid Cap Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 92,224 $ 119,401 Investments $ 10,354,767 $ 9,368,530 Interest for distribution purposes 2,465 1,334 Cash, net 16,049 35,092 Net realized gains (losses) on sale of investments 267,424 71,891 Due from brokers - - Change in unrealized appreciation Short-term securities 872,821 515,364 (depreciation) in value of investments 165,366 1,093,372 Subscriptions receivable 2,160 - Net gains (losses) on investments 527,479 1,285,998 Interest and dividends receivable 16,779 26,368 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 11,262,576 9,945,354 Net gains (losses) on derivatives - - Securities lending income (Note 10) 2,327 1,640 Liabilities Foreign exchange gains (losses) on cash - (17) Current liabilities Total income (loss) 529,806 1,287,621 Bank overdraft - - Due to brokers 369,932 30,000 Operating expenses (Note 4) Redemptions payable 3,884 - Administration fee 12,675 12,271 Distributions payable - - Management fee 159 10 Accrued expenses due to Manager 2,457 2,256 Independent review committee costs 132 143 Unrealized depreciation on Interest charges - 13 foreign currency contracts - - Transaction costs 10,915 6,243 376,273 32,256 Foreign withholding taxes - - Total operating expenses 23,881 18,680 Net assets attributable to unitholders ("NAV") $ 10,886,303 $ 9,913,098 Increase (decrease) in NAV from operations $ 505,925 $ 1,268,941

NAV per series Increase (decrease) in NAV from operations per series Series W $ 35,708 $ 14,440 Series W $ 185 $ 131 Series I 10,850,595 9,898,658 Series I 505,740 1,268,810

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.44 $ 10.02 Series W $ 0.09 $ 1.28 Series I 30.06 28.64 Series I 1.42 3.95

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

42 Guardian Canadian Small/Mid Cap Equity Fund

financial statements | June 30, 2015

Guardian Canadian Small/Mid Cap Equity Fund

NAV, beginning of period $ 14,440 $ 1,092 $ 9,898,658 $ 9,489,384 $ 9,913,098 $ 9,490,476

Increase (decrease) in NAV from operations 185 131 505,740 1,268,810 505,925 1,268,941

Distributions to unitholders: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units 21,083 - 794,607 380,920 815,690 380,920 Reinvested distributions ------Redemption of units - - (348,410) (43,949) (348,410) (43,949) 21,083 - 446,197 336,971 467,280 336,971

Net increase (decrease) in NAV 21,268 131 951,937 1,605,781 973,205 1,605,912

NAV, end of period $ 35,708 $ 1,223 $ 10,850,595 $ 11,095,165 $ 10,886,303 $ 11,096,388

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 1,440 102 345,662 315,138 Number of units issued 1,979 - 27,044 12,174 Number of units reinvested - - - - 3,419 102 372,706 327,312 Number of units redeemed - - (11,750) (1,396)

Units issued and outstanding, end of period 3,419 102 360,956 325,916

The accompanyingThe accompanying notes notes and their and supplementarytheir supplementary schedules schedules are an are integral an integral part of part the of financial these financial statements. statements.

43 Guardian Canadian Small/Mid Cap Equity Fund

financial statements | June 30, 2015

Guardian Canadian Small/Mid Cap Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 505,925 $ 1,268,941 Guardian Canadian Small/Mid Cap Equity Fund (the “Fund”) was formed on January 3, 1997. The primary Adjustments for: objective of the Fund is to achieve above-average, long-term capital appreciation by investing primarily in Foreign exchange (gain) loss on cash - 17 common shares or other equity-related securities of medium to smaller capitalization Canadian Net realized (gain) loss on sale of investments (267,424) (71,891) companies. Pursuant to an amendment to the Fund’s Declaration of Trust, effective September 16, 2013, Change in unrealized (appreciation) the existing Series A units were renamed as Series W units. The address of the Fund and the Manager's depreciation in value of investments (165,366) (1,093,372) principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) Note 3: Increase (decrease) in NAV from operations per unit per series depreciation in foreign currency contracts - - The weighted average number of units outstanding during the period used to calculate the increase Purchases of investments (1,824,376) (2,106,131) (decrease) in NAV from operations per unit per series are as follows: Proceeds from sale of investments 1,610,861 1,404,205 For the six months ended June 30 2015 2014 (Increase) decrease in short-term securities, net (357,457) 293,673 Series I 356,362 321,395 (Increase) decrease in interest and dividends receivable 9,589 845 Series W 1,956 102 Increase (decrease) in accrued expenses due to Manager 201 367 Net cash from (used in) operating activities (488,047) (303,346) Note 4: Operating expenses The Manager currently charges to the Fund management fees and administration fees, and the annual Cash flows from (used in) financing activities rates of these fees are as follows: Distributions paid, net of reinvested distributions - - Annual management fee rate 2015 2014 Proceeds from issuance of units 813,530 380,920 Series I 0.00% 0.00% Redemption of units (344,526) (43,949) Series W 1.50% 1.50% Net cash from (used in) financing activities 469,004 336,971 Annual administration fee rate 2015 2014 Foreign exchange Series I 0.22% 0.22% Net effect of foreign exchange on cash balances - - Series W 0.22% 0.22%

Net increase (decrease) in cash (19,043) 33,625 Note 5: Income taxes Cash, net (bank overdraft), beginning of period 35,092 2,138 The Fund has the following tax losses available to be carried forward and applied against future capital Cash, net (bank overdraft), end of period $ 16,049 $ 35,763 gains or income: As at December 31, 2014 December 31, 2013 Cash activity included in operating activities: Capital losses $ 6,207,414 $ 6,043,817 Interest received $ 2,465 $ 1,334 Non-capital losses - - Interest paid - (13) Dividends received, net of withholding taxes 101,813 120,019 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

44 Guardian Canadian Small/Mid Cap Equity Fund

financial statements | June 30, 2015

Guardian Canadian Small/Mid Cap Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ - $ - $ - - Australia - - GBP - - - - Brazil - - Euro - - - - Canada 95.1% 94.5% Other currencies - - - - China - - Net currency exposure $ - $ - $ - - France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ - $ - $ - - Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ - $ - $ - - Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, this Taiwan - - would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ - $ - Other countries - - % of NAV - - Short-term securities 8.0% 5.2% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) (3.1%) 0.3% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 16.3% 15.5% Consumer staples - - Note 8 (a) (iii): Other price risk: Energy 13.4% 11.0% The table below summarizes the Fund's exposure to other price risk: Financials 23.3% 21.6% As at June 30, 2015 December 31, 2014 Health care 3.9% 3.3% Other price risk $ 10,354,767 $ 9,368,530 Industrials 7.8% 9.7% % of NAV 95.1% 94.5% Information technology 11.1% 12.7% Materials 17.9% 19.3% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this Royalty and income trust units - - would have increased or decreased the Fund's NAV as follows: Telecommunication services 1.4% 1.4% As at June 30, 2015 December 31, 2014 Utilities - - Change in NAV $ 518,000 $ 468,000 Short-term securities 8.0% 5.2% % of NAV 4.8% 4.7% Other net assets (liabilities) (3.1%) 0.3% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

45 Guardian Canadian Small/Mid Cap Equity Fund

financial statements | June 30, 2015

Guardian Canadian Small/Mid Cap Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement The summary of the fair value hierarchy for the Fund's investments are as follows: The following table is a reconciliation of the opening balance to the closing balance for As at June 30, 2015 Level 1 Level 2 Level 3 Total instruments at level 3: Equity investments $ 8,931,011 $ 422,185 $ 128,750 $ 9,481,946 Equity investments Fixed-income investments - - - - For the six months ended June 30, 2015 June 30, 2014 Short-term securities 872,821 - - 872,821 Balance, beginning of period $ - $ - Investment funds - - - - Purchases 255,826 - Derivatives - assets - - - - Sales - - Derivatives - liabilities - - - - Net transfers in/out - - Total $ 9,803,832 $ 422,185 $ 128,750 $ 10,354,767 Gains (losses) Percentage of total investments 94.7% 4.1% 1.2% 100.0% Realized 140 - Unrealized (127,216) - As at December 31, 2014 Level 1 Level 2 Level 3 Total Balance, end of period $ 128,750 $ - Equity investments $ 9,366,811 $ 1,719 $ - $ 9,368,530 Fixed-income investments - - - - The equity investments classified as level 3 were valued based on quotations provided by dealers Short-term securities 515,364 - - 515,364 active in trading these investments. The value of the investment is based on an estimate of the Investment funds - - - - enterprise value of the investee company less the value of any debts of that company. The Derivatives - assets - - - - enterprise value of these equity investments is an estimate of the economic value of the present Derivatives - liabilities - - - - value of the future cashflows of the investee company. The present value will vary based on Total $ 9,882,175 $ 1,719 $ - $ 9,883,894 changes in the future cashflows of the investee company which are dependent on interest rates Percentage of total investments 100.0% 0.0% - 100.0% and several other factors including natural resource prices. Note 10: Securities lending The summary of significant transfers between levels during the periods are as follows: The securities lending income, the values of securities on loan, and the value of collateral held for For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to such loans, are as follows: 30, 2015 Level 2 Level 1 Level 3 Level 2 For the six months ended June 30 2015 2014 Equity investments $ - $ - $ - $ - Fixed-income investments - - - - Securities lending income $ 2,327 $ 1,640 Short-term securities - - - - Investment funds - - - - As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ 2,442,942 $ 2,023,759 Total $ - $ - $ - $ - Collateral held for securites on loan 2,565,095 2,124,954

For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Note 11: Related party unitholders 30, 2014 Level 2 Level 1 Level 3 Level 2 Units of the Fund held by affiliates and officers of the Manager, or other investment funds Equity investments $ - $ - $ - $ - managed by the Manager are as follows: Fixed-income investments - - - - As at June 30, 2015 December 31, 2014 Short-term securities - - - - Series I - number of units 2,965 896 Investment funds - - - - Series I - percentage of issued units 0.8% 0.0% Derivatives - assets - - - - Derivatives - liabilities - - - - Series W - number of units 104 104 Total $ - $ - $ - $ - Series W - percentage of issued units 3.2% 7.0%

As at December 31, 2014 Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 515,364

46 Guardian Equity Income Fund

financial statements | June 30, 2015

Guardian Equity Income Fund

EQUITY INVESTMENTS - 94.7% CONSUMER DISCRETIONARY - 7.1% INFORMATION TECHNOLOGY - 2.2% 89,050 Cineplex Inc. $ 3,043,490 $ 4,187,131 87,900 DH Corp. $ 2,196,363 $ 3,508,968 130,300 Shaw Communications Inc., Class B * 3,023,258 3,544,160 72,000 Thomson Reuters Corp. 2,432,575 3,424,320 MATERIALS - 3.5% 8,499,323 11,155,611 30,400 Agrium Inc. 2,990,772 4,024,048 CONSUMER STAPLES - 1.5% 100,650 Labrador Iron Ore Royalty Corp. * 2,711,558 1,435,268 97,800 The North West Co., Inc. 2,189,271 2,421,528 5,702,330 5,459,316 ROYALTY AND INCOME TRUST - 20.6% ENERGY - 25.5% 40,700 Allied Properties Real Estate Investment Trust * 1,415,666 1,442,408 113,400 AltaGas Ltd. 3,953,743 4,313,736 60,800 Boardwalk REIT 3,507,847 3,443,104 156,150 ARC Resources Ltd. * 3,921,581 3,341,610 132,596 Brookfield Property Partners LP 2,775,886 3,662,302 188,950 Baytex Energy Corp. 6,621,527 3,671,299 110,200 Brookfield Renewable Energy Partners LP 3,059,786 4,092,828 238,300 Cenovus Energy Inc. 6,496,419 4,758,851 100,450 Canadian Apartment Properties REIT * 1,985,225 2,772,420 130,300 Crescent Point Energy Corp. 4,828,058 3,339,589 109,100 Canadian REIT * 4,443,149 4,631,295 41,950 Enbridge Inc. 2,307,697 2,450,300 306,150 Chartwell Retirement Residences * 2,767,404 3,514,602 109,900 Keyera Corp. 2,933,998 4,582,830 163,200 H&R Real Estate Investment Trust 3,516,579 3,662,208 116,850 Mullen Group Ltd. 2,628,473 2,384,909 192,350 RioCan REIT * 4,733,988 5,149,210 107,900 Pembina Pipeline Corp. 3,537,165 4,355,923 28,205,530 32,370,377 99,300 Peyto Exploration & Development Corp. 2,545,731 3,031,628 TELECOMMUNICATION SERVICES - 5.9% 71,200 Vermilion Energy Inc. 3,741,373 3,841,240 102,050 Manitoba Telecom Services Inc. 3,175,289 2,848,216 43,515,765 40,071,915 148,750 TELUS Corp. 4,931,898 6,400,712 FINANCIALS - 24.0% 8,107,187 9,248,928 90,550 Bank of Nova Scotia 5,299,946 5,837,758 UTILITIES - 2.0% 39,850 Canadian Imperial Bank of Commerce 3,289,678 3,668,990 195,550 Northland Power Inc. * 3,268,908 3,093,601 72,200 CI Financial Corp. 2,391,632 2,425,920 Total equity investments 135,838,111 148,590,620 49,000 Intact Financial Corp. 3,158,676 4,252,710 Transaction costs (110,997) - 261,000 Manulife Financial Corp. 4,216,388 6,057,810 Total investments - 94.7% 135,727,114 148,590,620 87,900 Power Corp. of Canada * 2,428,503 2,807,526 79,750 Royal Bank of Canada 5,047,609 6,091,305 SHORT-TERM SECURITIES - 4.9% 121,350 Toronto-Dominion Bank 5,299,849 6,436,404 773,519 Guardian Canadian Short-Term Investment 31,132,281 37,578,423 Fund, Series I 7,735,191 7,735,191 INDUSTRIALS - 2.4% Total short-term securities 7,735,191 7,735,191 41,600 Progressive Waste Solutions Ltd. 902,085 1,393,600 75,250 Westshore Terminals Investment Corp. 2,119,068 2,288,353 Other net assets - 0.4% 658,115 3,021,153 3,681,953 Net assets attributable to unitholders - 100.0% $ 156,983,926

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

47 Guardian Equity Income Fund

financial statements | June 30, 2015

Guardian Equity Income Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 2,950,434 $ 2,735,141 Investments $ 148,590,620 $ 150,679,225 Interest for distribution purposes 30,248 32,319 Cash, net 126,368 271,476 Net realized gains (losses) on sale of investments (631,214) 1,106,798 Due from brokers - - Change in unrealized appreciation Short-term securities 7,735,191 8,129,933 (depreciation) in value of investments (2,301,961) 10,581,022 Subscriptions receivable 45,662 671,713 Net gains (losses) on investments 47,507 14,455,280 Interest and dividends receivable 530,616 617,449 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 157,028,457 160,369,796 Net gains (losses) on derivatives - - Securities lending income (Note 10) 15,744 14,619 Liabilities Foreign exchange gains (losses) on cash 1,015 (130) Current liabilities Total income (loss) 64,266 14,469,769 Bank overdraft - - Due to brokers - 359,943 Operating expenses (Note 4) Redemptions payable 6,892 71 Administration fee 200,161 165,996 Distributions payable 449 1,328 Management fee 9,868 4,141 Accrued expenses due to Manager 37,190 37,790 Independent review committee costs 2,074 1,884 Unrealized depreciation on Interest charges 28 21 foreign currency contracts - - Transaction costs 27,954 25,256 44,531 399,132 Foreign withholding taxes 319 101 Total operating expenses 240,404 197,399 Net assets attributable to unitholders ("NAV") $ 156,983,926 $ 159,970,664 Increase (decrease) in NAV from operations $ (176,138) $ 14,272,370

NAV per series Increase (decrease) in NAV from operations per series Series W $ 1,165,640 $ 1,155,540 Series W $ (12,631) $ 55,871 Series I 155,818,286 158,815,124 Series I (163,507) 14,216,499

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 12.02 $ 12.25 Series W $ (0.13) $ 1.32 Series I 17.62 17.96 Series I (0.02) 1.92

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

48 Guardian Equity Income Fund

financial statements | June 30, 2015

Guardian Equity Income Fund

NAV, beginning of period $ 1,155,540 $ 147,547 $ 158,815,124 $ 122,888,658 $ 159,970,664 $ 123,036,205

Increase (decrease) in NAV from operations (12,631) 55,871 (163,507) 14,216,499 (176,138) 14,272,370

Distributions to unitholders from: Income (11,505) (7,672) (2,783,538) (2,311,234) (2,795,043) (2,318,906) Capital gains ------(11,505) (7,672) (2,783,538) (2,311,234) (2,795,043) (2,318,906)

Redeemable unit transactions: Proceeds from issuance of units 144,068 643,171 7,328,181 16,143,876 7,472,249 16,787,047 Reinvested distributions 11,210 7,552 2,784,712 2,311,234 2,795,922 2,318,786 Redemption of units (121,042) (3,571) (10,162,686) (3,342,655) (10,283,728) (3,346,226) 34,236 647,152 (49,793) 15,112,455 (15,557) 15,759,607

Net increase (decrease) in NAV 10,100 695,351 (2,996,838) 27,017,720 (2,986,738) 27,713,071

NAV, end of period $ 1,165,640 $ 842,898 $ 155,818,286 $ 149,906,378 $ 156,983,926 $ 150,749,276

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 94,357 12,241 8,843,027 6,990,020 Number of units issued 11,497 51,851 401,147 887,978 Number of units reinvested 919 593 155,714 123,388 106,773 64,685 9,399,888 8,001,386 Number of units redeemed (9,762) (286) (557,010) (182,045)

Units issued and outstanding, end of period 97,011 64,399 8,842,878 7,819,341

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

49 Guardian Equity Income Fund

financial statements | June 30, 2015

Guardian Equity Income Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ (176,138) $ 14,272,370 Guardian Equity Income Fund (the “Fund”) was formed on February 14, 2003. The principal objective of Adjustments for: the Fund is the achievement of a high level of stable income with an attractive total return by investing Foreign exchange (gain) loss on cash (1,015) 130 primarily in Canadian dividend-paying equity investments, income trust units and other flow-through Net realized (gains) losses on sale of investments 631,214 (1,106,798) securities. Pursuant to an amendment to the Fund’s Declaration of Trust, effective September 16, 2013, Change in unrealized (appreciation) the existing Series A units were renamed as Series W units. The address of the Fund and the Manager's depreciation in value of investments 2,301,961 (10,581,022) principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) Note 3: Increase (decrease) in NAV from operations per unit per series depreciation in foreign currency contracts - - The weighted average number of units outstanding during the period used to calculate the increase Purchases of investments (12,200,208) (22,785,933) (decrease) in NAV from operations per unit per series are as follows: Proceeds from sale of investments 10,995,860 7,724,945 For the six months ended June 30 2015 2014 (Increase) decrease in short-term securities, net 394,742 (482,319) Series I 8,917,795 7,416,284 (Increase) decrease in interest and dividends receivable 86,833 (91,934) Series W 98,318 42,446 Increase (decrease) in accrued expenses due to Manager (600) 8,264 Net cash from (used in) operating activities 2,032,649 (13,042,297) Note 4: Operating expenses The Manager currently charges to the Fund management fees and administration fees, and the annual Cash flows from (used in) financing activities rates of these fees are as follows: Distributions paid, net of reinvested distributions - (120) Annual management fee rate 2015 2014 Proceeds from issuance of units 8,098,300 16,528,215 Series I 0.00% 0.00% Redemption of units (10,276,907) (3,344,034) Series W 1.50% 1.50% Net cash from (used in) financing activities (2,178,607) 13,184,061 Annual administration fee rate 2015 2014 Foreign exchange Series I 0.22% 0.22% Net effect of foreign exchange on cash balances 850 (187) Series W 0.22% 0.22%

Net increase (decrease) in cash (145,108) 141,577 Note 5: Income taxes Cash, net (bank overdraft), beginning of period 271,476 23,470 The Fund has the following tax losses available to be carried forward and applied against future capital Cash, net (bank overdraft), end of period $ 126,368 $ 165,047 gains or income: As at December 31, 2014 December 31, 2013 Cash activity included in operating activities: Capital losses $ 972,548 $ 2,384,934 Interest received $ 30,248 $ 32,319 Non-capital losses - - Interest paid (28) (21) Dividends received, net of withholding taxes 3,036,948 2,643,106 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

50 Guardian Equity Income Fund

financial statements | June 30, 2015

Guardian Equity Income Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 33,209 $ - $ 33,209 0.0% Australia - - GBP - - - - Bermuda 4.9% 4.7% Euro - - - - Canada 89.8% 89.5% Other currencies - - - - China - - Net currency exposure $ 33,209 $ - $ 33,209 0.0% France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ - $ - $ - - Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ - $ - $ - - Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, this Taiwan - - would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ 2,000 $ - Other countries - - % of NAV 0.0% - Short-term securities 4.9% 5.1% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 0.4% 0.7% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 7.1% 7.2% Consumer staples 1.5% 1.6% Note 8 (a) (iii): Other price risk: Energy 25.5% 25.7% The table below summarizes the Fund's exposure to other price risk: Financials 24.0% 24.6% As at June 30, 2015 December 31, 2014 Health care - - Other price risk $ 148,590,620 $ 150,679,225 Industrials 2.4% 2.4% % of NAV 94.7% 94.2% Information technology 2.2% 1.7% Materials 3.5% 3.4% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this Royalty and income trust units 20.6% 19.4% would have increased or decreased the Fund's NAV as follows: Telecommunication services 5.9% 5.7% As at June 30, 2015 December 31, 2014 Utilities 2.0% 2.5% Change in NAV $ 7,430,000 $ 7,534,000 Short-term securities 4.9% 5.1% % of NAV 4.7% 4.7% Other net assets (liabilities) 0.4% 0.7% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

51 Guardian Equity Income Fund

financial statements | June 30, 2015

Guardian Equity Income Fund

Supplementary Schedules to the Notes to the Financial Statements (unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 10: Securities lending The summary of the fair value hierarchy for the Fund's investments are as follows: The securities lending income, the values of securities on loan, and the value of collateral held for such loans, are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total For the six months ended June 30 2015 2014 Equity investments $ 148,590,620 $ - $ - $ 148,590,620 Fixed-income investments - - - - Securities lending income $ 15,744 $ 14,619 Short-term securities 7,735,191 - - 7,735,191 Investment funds - - - - As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ 31,477,207 $ 34,519,238 Total $ 156,325,811 $ - $ - $ 156,325,811 Collateral held for securites on loan 33,051,071 36,245,208 Percentage of total investments 100.0% - - 100.0% Note 11: Related party unitholders As at December 31, 2014 Level 1 Level 2 Level 3 Total Units of the Fund held by affiliates and officers of the Manager, or other investment funds Equity investments $ 150,679,225 $ - $ - $ 150,679,225 managed by the Manager are as follows: Fixed-income investments - - - - As at June 30, 2015 December 31, 2014 Short-term securities 8,129,933 - - 8,129,933 Investment funds - - - - Series I - number of units 39,545 7,267 Derivatives - assets - - - - Series I - percentage of issued units 0.4% 0.0% Derivatives - liabilities - - - - Total $ 158,809,158 $ - $ - $ 158,809,158 Series W - number of units - - Percentage of total investments 100.0% - - 100.0% Series W - percentage of issued units - -

The summary of significant transfers between levels during the periods are as follows: Note 12: Investments in non-consolidated structured entities For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to The Fund has invested in non-consolidated entities ("NCE") and details of these investments are 30, 2015 Level 2 Level 1 Level 3 Level 2 as follows: Equity investments $ - $ - $ - $ - Total net assets of Fair value of Fund's Fixed-income investments - - - - the NCE investment in NCE Short-term securities - - - - As at June 30, 2015 Investment funds - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 7,735,191 Derivatives - assets - - - - Derivatives - liabilities - - - - As at December 31, 2014 Total $ - $ - $ - $ - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 8,129,933

52 Guardian Fundamental Global Equity Fund

financial statements | June 30, 2015

Guardian Fundamental Global Equity Fund

EQUITY INVESTMENTS - 94.1% INDUSTRIALS - 6.1% CONSUMER DISCRETIONARY - 23.8% 7,132 Assa Abloy AB $ 149,947 $ 167,510 5,912 Hennes & Mauritz AB $ 285,518 $ 283,938 1,582 FANUC Corp. 357,554 404,808 1,543 LVMH Moet Hennessy Louis Vuitton SA 303,739 337,301 507,501 572,318 310 The Priceline Group Inc. 426,040 445,604 INFORMATION TECHNOLOGY - 30.9% 2,302 Tiffany & Co. 253,333 263,828 2,910 Automatic Data Processing Inc. 270,793 291,476 2,015 Ulta Salon Cosmetics & Fragrance Inc. 304,535 388,540 6,864 Cognizant Technology Solutions Corp. 441,949 523,504 4,524 Yum! Brands Inc. 425,033 508,773 2,288 Dassault Systemes SA 187,455 207,575 1,998,198 2,227,984 4,065 Gemalto NV 425,514 451,686 CONSUMER STAPLES - 9.9% 712 Google Inc., Class A 469,049 480,042 3,431 Colgate-Palmolive Co. 265,780 280,180 9,023 Intertek Group PLC 423,721 434,045 3,366 Nestle SA 293,921 303,519 4,329 Mastercard Inc. 420,823 505,218 3,178 Reckitt Benckiser Group PLC 323,165 342,441 2,639,304 2,893,546 882,866 926,140 Total equity investments 7,900,532 8,816,052 FINANCIALS - 6.7% Transaction costs (10,885) - 1,683 CME Group Inc. 169,415 195,533 Total Investments - 94.1% 7,889,647 8,816,052 3,207 Moody's Corp. 373,541 432,250 542,956 627,783 Other net assets - 5.9% 554,030 HEALTH CARE - 16.7% Net assets attributable to unitholders - 100.0% $ 9,370,082 2,215 Essilor International SA 293,617 329,682 4,002 Novo Nordisk A/S 232,689 272,080 3,782 Stryker Corp. 397,510 451,249 3,383 UnitedHealth Group Inc. 405,891 515,270 1,329,707 1,568,281

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

53 Guardian Fundamental Global Equity Fund

financial statements | June 30, 2015

Guardian Fundamental Global Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statement of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six-months ended June 30 2015

Assets Income Current assets Dividends $ 57,405 Investments $ 8,816,052 $ 3,827,118 Interest for distribution purposes 8 Cash 467,414 169,191 Net realized gains (losses) on sale of investments 84,662 Due from brokers - - Change in unrealized appreciation Short-term securities - - (depreciation) in value of investments 579,208 Subscriptions receivable 82,200 - Net gains (losses) on investments 721,283 Interest and dividends receivable 6,037 6,144 Net realized gains (losses) on foreign currency contracts - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - 9,371,703 4,002,453 Net gains (losses) on derivatives - Foreign exchange gains (losses) on cash (5,408) Liabilities Total income (loss) 715,875 Current liabilities Bank overdraft - - Operating expenses (Note 4) Due to brokers - - Administration fee 6,199 Redemptions payable - - Management fee 85 Distributions payable 15 - Independent review committee costs - Accrued expenses due to Manager 1,606 802 Interest charges 6 Unrealized depreciation on Transaction costs 7,622 foreign currency contracts - - Foreign withholding taxes 10,429 1,621 802 Total operating expenses 24,341 Net assets attributable to unitholders ("NAV") $ 9,370,082 $ 4,001,651 Increase (decrease) in NAV from operations $ 691,534

NAV per series Increase (decrease) in NAV from operations per series Series W $ 25,572 $ - Series W $ 572 Series I 9,344,510 4,001,651 Series I 690,962

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.23 $ - Series W $ 0.23 Series I 12.75 10.96 Series I 1.51

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

54 Guardian Fundamental Global Equity Fund

financial statements | June 30, 2015

Guardian Fundamental Global Equity Fund

Financial Statements Statement of Changes in Net Assets Attributable to Unitholders (Unaudited) 2015 2015 2015 For the six-months ended June 30 Series W Series I Total

NAV, beginning of period $ - $ 4,001,651 $ 4,001,651

Increase (decrease) in NAV from operations 572 690,962 691,534

Distributions to unitholders: Income (32) (40,041) (40,073) Capital gains - - - (32) (40,041) (40,073)

Redeemable unit transactions: Proceeds from issuance of units 25,000 4,651,912 4,676,912 Reinvested distributions 32 40,026 40,058 Redemption of units - - - 25,032 4,691,938 4,716,970

Net increase (decrease) in NAV 25,572 5,342,859 5,368,431

NAV, end of period $ 25,572 $ 9,344,510 $ 9,370,082

Change in units (Note 3) 2015 2015 Series W Series I Units issued and outstanding, beginning of period - 365,158 Number of units issued 2,500 364,779 Number of units reinvested 3 3,138 2,503 733,075 Number of units redeemed - -

Units issued and outstanding, end of period 2,503 733,075

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

55 Guardian Fundamental Global Equity Fund

financial statements | June 30, 2015

Guardian Fundamental Global Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statement of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six-months ended June 30 2015 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 691,534 Guardian Fundamental Global Equity Fund (the “Fund”) was formed on July 31, 2014. The primary Adjustments for: objective of the Fund is the achievement of long-term capital appreciation through security Foreign exchange (gain) loss on cash 5,408 selection in global securities markets. The address of the Fund and the Manager's principal Net realized (gain) loss on sale of investments (84,662) business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) depreciation in value of investments (579,208) Note 3: Increase (decrease) in NAV from operations per unit per series Change in unrealized (appreciation) The weighted average number of units outstanding during the period used to calculate the increase depreciation in foreign currency contracts (decrease) in NAV from operations per unit per series are as follows: Purchases of investments (4,702,519) For the six-months ended June 30 2015 Proceeds from sale of investments 372,047 Series I 457,777 (Increase) decrease in short-term securities, net - Series W 2,500 (Increase) decrease in interest and dividends receivable 107 Increase (decrease) in accrued expenses due to Manager 804 Note 4: Operating expenses Increase (decrease) in distributions payable - The Manager currently charges to the Fund management fees and administration fees, and the annual Net cash from (used in) operating activities (4,296,489) rates of these fees are as follows: Annual management fee rate 2015 Cash flows from (used in) financing activities Series I 0.00% Distributions paid, net of reinvested distributions - Series W 1.50% Proceeds from issuance of units 4,594,712 Redemption of units - Annual administration fee rate 2015 Net cash from (used in) financing activities 4,594,712 Series I 0.22% Series W 0.22% Foreign exchange Net effect of foreign exhchange on cash balances - Note 5: Income taxes The Fund has the following tax losses available to be carried forward and applied against future capital Net increase (decrease) in cash 298,223 gains or income: Cash, beginning of period 169,191 As at December 31, 2014 Cash, end of period $ 467,414 Capital losses $6,620 Non-capital losses - Cash activity included in operating activities: Interest received $ 8 The losses expire on the following dates: Interest paid (6) Amount expiring Date of expiry Dividends received, net of withholding taxes 47,083 Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

56 Guardian Fundamental Global Equity Fund

financial statements | June 30, 2015

Guardian Fundamental Global Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 3,412 $ - $ 3,412 0.0% Denmark 2.9% 5.7% GBP - - - - France 9.3% 9.7% Euro - - - - Japan 4.3% 3.5% Other currencies 3,950 - 3,950 0.0% Netherlands 4.8% 2.6% Net currency exposure $ 7,362 $ - $ 7,362 0.0% Sweden 4.8% 4.4% Switzerland 3.2% 3.6% Financial Instruments United Kingdom 8.3% 8.0% As at December 31, 2014 Derivatives Total % of NAV excluding derviatives United States of America 56.5% 58.1% USD $ 96,648 $ - $ 96,648 2.4% Other countries - - GBP - - - - Short-term securities - - Euro - - - - Other net assets (liabilities) 5.9% 4.4% Other currencies - - - - Total 100.0% 100.0% Net currency exposure $ 96,648 $ - $ 96,648 2.4% Investment sectors, as at June 30, 2015 December 31, 2014 If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Consumer discretionary 23.8% 22.0% this would have increased or decreased the Fund's NAV as follows: Consumer staples 9.9% 10.9% As at June 30, 2015 December 31, 2014 Energy - - Currency exposure $ - $ 5,000 Financials 6.7% 10.0% % of NAV 0.0% 0.1% Health care 16.7% 19.2% In practice, the actual trading results could differ, and the difference could be material. Industrials 6.1% 9.5% Information technology 30.9% 24.0% Note 8 (a) (ii): Interest rate risk: Materials - - The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Royalty and income trust units - - significant to the Fund as the Fund invests predominantly in equity securities. Telecommunication services - - Utilities - - Note 8 (a) (iii): Other price risk: Short-term securities - - The table below summarizes the Fund's exposure to other price risk: Other net assets (liabilities) 5.9% 4.4% As at June 30, 2015 December 31, 2014 Total 100.0% 100.0% Other price risk $ 8,816,052 $ 3,827,118 % of NAV 94.1% 95.6% Note 8 (d): Credit risk: This risk is not considered to be significant to the Fund as the Fund invests If the prices on stock exchanges for the equity investments held by the Fund increased or decreased by 5%, with all other predominantly in equity securities. variables held constant, this would have increased or decreased the Fund's NAV as follows: As at June 30, 2015 December 31, 2014 Change in NAV $ 441,000 $ 191,000 % of NAV 4.7% 4.8% In practice, the actual trading results could differ, and the difference could be material.

57 Guardian Fundamental Global Equity Fund

financial statements | June 30, 2015

Guardian Fundamental Global Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 11: Related party unitholders The following is a summary of the fair value hierarchy for the Fund's investments: Units of the Fund held by affiliates and officers of the Manager, or other investment funds managed by the Manager are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total As at June 30, 2015 December 31, 2014 Equity investments $ 8,816,052 $ - $ - $ 8,816,052 Fixed-income investments - - - - Series I - number of units 147,988 135,873 Short-term securities - - - - Series I - percentage of issued units 20.4% 37.0% Investment funds - - - - Derivatives - assets - - - - Series W - number of units 2,503 - Derivatives - liabilities - - - - Series W - percentage of issued units 100.0% 0.0% Total $ 8,816,052 $ - $ - $ 8,816,052 Percentage of total investments 100.0% - - 100.0%

As at December 31, 2014 Level 1 Level 2 Level 3 Total Equity investments $ 3,827,118 $ - $ - $ 3,827,118 Fixed-income investments - - - - Short-term securities - - - - Investment funds Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ 3,827,118 $ - $ - $ 3,827,118 Percentage of total investments 100.0% - - 100.0%

Significant transfers between levels during the period are as follows: For the six-months ended June Level 1 to Level 2 to Level 2 to Level 3 to 30, 2015 Level 2 Level 1 Level 3 Level 2 Equity investments $ - $ - $ - $ - Fixed-income investments - - - - Short-term securities - - - - Investment funds - - - - Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ - $ - $ - $ -

58 Guardian Global Dividend Growth Fund

financial statements | June 30, 2015

Guardian Global Dividend Growth Fund

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015 Number of Number of Shares/ Units/ Average Fair Shares/ Units/ Average Fair Par Value Security Cost Value Par Value Security Cost Value EQUITY INVESTMENTS - 99.3% HEALTH CARE - Continued CONSUMER DISCRETIONARY - 8.5% 16,736 Merck & Co. Inc. $ 1,040,228 $ 1,189,504 14,228 Daimler AG $ 1,416,220 $ 1,615,788 38,668 Novartis AG, ADR * 3,604,074 4,747,389 39,089 Fuji Heavy Industries Ltd. 1,783,898 1,797,853 45,805 Pfizer Inc. 1,522,643 1,917,429 8,993 Genuine Parts Co. 858,612 1,005,185 82,000 Sonic Healthcare Ltd. 1,351,318 1,681,482 11,498 Macy's Inc. 647,446 968,514 31,783 Teva Pharmaceutical Industries Ltd., ADR 1,974,845 2,345,067 20,012 McDonald's Corp. 2,109,505 2,375,237 22,075,483 29,344,246 22,167 Newell Rubbermaid Inc. 755,020 1,137,699 INDUSTRIALS - 12.9% 54,710 ProSiebenSat.1 Media AG 2,577,758 3,371,382 236,869 BAE Systems PLC 1,936,396 2,098,433 41,323 Regal Entertainment Group, Class A * 1,240,155 1,078,745 55,911 CSX Corp. 1,459,861 2,279,047 80,163 Six Flags Entertainment Corp. 3,709,585 4,488,584 14,326 Emerson Electric Co. 852,751 991,386 27,761 VF Corp. 2,145,262 2,417,074 4,513 FANUC Corp. 1,186,112 1,154,805 17,243,461 20,256,061 229,692 Ferrovial SA 3,966,313 6,214,455 CONSUMER STAPLES - 13.7% 24,801 General Dynamics Corp. 2,722,548 4,387,138 61,149 Altria Group Inc. 1,985,606 3,733,876 40,760 Illinois Tool Works Inc. 2,752,375 4,670,920 28,057 Anheuser-Busch InBev NV, ADR * 3,409,246 4,226,817 15,444 Lockheed Martin Corp. 2,374,544 3,584,363 21,885 British American Tobacco PLC, ADR 2,503,645 2,957,654 48,409 Republic Services Inc. 2,431,005 2,367,296 22,245 Dr. Pepper Snapple Group Inc. 1,064,090 2,024,570 211,200 Sydney Airport * 935,510 1,009,246 61,200 Imperial Tobacco Group PLC 2,898,057 3,685,386 31,618 Waste Management Inc. 1,543,761 1,829,604 10,640 Kimberly-Clark Corp. 1,242,909 1,407,659 22,161,176 30,586,693 46,900 Nestle SA 3,286,594 4,229,063 INFORMATION TECHNOLOGY - 9.5% 16,324 Philip Morris International Inc. 1,483,899 1,633,847 44,913 Apple Inc. 4,328,315 7,032,813 46,786 Reynolds American Inc. 2,776,941 4,360,907 24,917 Automatic Data Processing Inc. 1,399,020 2,495,775 14,004 The Procter & Gamble Co. 1,213,510 1,367,898 16,456 Cisco Systems Inc. 611,806 564,154 58,397 Unilever NV 2,662,975 3,050,388 25,278 DH Corp. 684,658 1,009,098 24,527,472 32,678,065 30,394 Intel Corp. 906,358 1,154,114 ENERGY - 8.2% 49,414 Microsoft Corp. 2,154,531 2,723,665 45,742 BP PLC 2,400,104 2,281,989 49,771 Seagate Technology PLC 1,954,806 2,951,500 15,623 Chevron Corp. 1,831,056 1,881,610 108,336 STMicroelectronics NV 1,211,069 1,098,251 16,571 ConocoPhillips 977,699 1,270,459 56,498 Texas Instruments Inc. 2,300,037 3,633,269 49,600 ENI SpA 1,421,132 1,098,404 15,550,600 22,662,639 15,701 Exxon Mobil Corp. 1,656,472 1,630,886 MATERIALS - 5.5% 20,025 Keyera Corp. 487,447 835,043 20,888 Air Products & Chemicals Inc. 2,303,053 3,568,216 50,802 Kinder Morgan Inc. 2,700,115 2,434,848 40,609 BASF SE * 4,458,184 4,452,422 53,624 Pembina Pipeline Corp. 1,805,065 2,164,801 42,178 Dow Chemical Co. 1,713,409 2,694,476 20,700 Royal Dutch Shell PLC, A-Shares 826,488 726,091 19,081 LyondellBasell Industries NV, Class A 2,454,666 2,466,030 43,597 The Williams Cos. Inc. 2,759,139 3,123,674 10,929,312 13,181,144 35,200 Total SA * 2,100,814 2,133,378 TELECOMMUNICATION SERVICES - 9.3% 18,965,531 19,581,183 109,388 AT&T Inc. * 4,175,798 4,850,824 FINANCIALS - 14.2% 103,000 Deutsche Telekom AG 1,845,789 2,213,621 75,600 Australia & New Zealand Banking Group Ltd. 2,128,707 2,335,886 88,800 Proximus 3,538,695 3,911,998 103,964 AXA SA * 2,264,918 3,272,692 7,100 Swisscom AG 4,532,570 4,970,009 80,222 BioMed Realty Trust Inc. 2,199,834 1,936,970 496,400 Telstra Corp., Ltd. 2,591,476 2,924,651 125,686 Daiwa Securities Group Inc. 1,165,655 1,176,161 57,741 Verizon Communications Inc. 3,190,749 3,359,977 44,547 JPMorgan Chase & Co. 2,893,018 3,768,467 19,875,077 22,231,080 202,800 Legal & General Group PLC 494,773 991,084 UTILITIES - 5.2% 199,487 Mitsubishi UFJ Financial Group Inc. 1,750,249 1,790,665 25,516 Ameren Corp. 1,125,957 1,200,318 5,300 Muenchener Rueckversicherungs AG * 1,351,940 1,172,224 25,847 Duke Energy Corp. 2,029,533 2,278,824 37,312 Prudential PLC, ADR * 1,382,353 2,262,039 13,693 Entergy Corp. 1,215,535 1,205,204 25,589 Royal Bank of Canada 2,049,197 1,954,488 204,800 National Grid PLC 2,718,886 3,286,065 116,400 Skandinaviska Enskilda Banken AB 1,439,367 1,856,457 142,600 SSE PLC 3,966,619 4,300,595 53,924 Spirit Realty Capital Inc. 598,534 651,001 11,056,530 12,271,006 77,121 Swedbank AB 2,411,089 2,243,006 Total equity investments 191,157,723 236,455,465 9,051 The Goldman Sachs Group Inc. 2,375,529 2,359,278 Transaction costs (178,287) - 62,224 Wells Fargo & Co. 2,755,487 4,368,941 Total investments - 99.3% 190,979,436 236,455,465 49,400 Westpac Banking Corp. 1,512,431 1,523,989 28,773,081 33,663,348 SHORT-TERM SECURITIES - 0.0% HEALTH CARE - 12.3% 47 Guardian Canadian Short-Term Investment 46,928 AbbVie Inc. * 2,832,235 3,936,494 Fund, Series I 470 470 25,400 AstraZeneca PLC 1,415,503 2,004,331 Total short-term securities 470 470 12,540 Bayer AG 1,604,803 2,190,039 20,538 GlaxoSmithKline PLC, ADR * 1,123,915 1,067,938 Other net assets - 0.7% 1,746,820 39,599 Johnson & Johnson 3,294,156 4,818,186 Net assets attributable to unitholders- 100.0% $ 238,202,755 37,254 Medtronic PLC 2,311,763 3,446,387

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

59 Guardian Global Dividend Growth Fund

financial statements | June 30, 2015

Guardian Global Dividend Growth Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 5,456,048 $ 4,114,296 Investments $ 236,455,465 $ 211,850,635 Interest for distribution purposes 4,386 8,929 Cash, net 273,544 170,430 Net realized gains (losses) on sale of investments 6,469,377 1,989,429 Due from brokers 47 - Change in unrealized appreciation Short-term securities 470 3,219,657 (depreciation) in value of investments 5,154,257 7,136,588 Subscriptions receivable 766,426 264,443 Net gains (losses) on investments 17,084,068 13,249,242 Interest and dividends receivable 823,498 409,893 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 238,319,450 215,915,058 Net gains (losses) on derivatives - - Securities lending income (Note 10) 36,115 43,934 Liabilities Foreign exchange gains (losses) on cash 154,174 31,153 Current liabilities Total income (loss) 17,274,357 13,324,329 Bank overdraft - - Due to broker - 170,000 Operating expenses (Note 4) Redemptions payable 44,902 4,471 Administration fee 287,285 210,132 Distributions payable 4,958 2,532 Management fee 75,498 48,790 Accrued expenses due to Manager 66,835 59,598 Independent review committee costs 2,832 2,485 Unrealized depreciation on - - Interest charges 3,632 1,579 foreign currency contracts - - Transaction costs 61,106 68,098 116,695 236,601 Foreign withholding taxes 906,527 663,643 Total operating expenses 1,336,880 994,727 Net assets attributable to unitholders ("NAV") $ 238,202,755 $ 215,678,457 Increase (decrease) in NAV from operations $ 15,937,477 $ 12,329,602

NAV per series Increase (decrease) in NAV from operations per series Series W $ 9,508,438 $ 6,964,197 Series W $ 414,844 $ 336,320 Series I 228,694,317 208,714,260 Series I 15,522,633 11,993,282

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 14.64 $ 13.87 Series W $ 0.73 $ 0.78 Series I 17.40 16.47 Series I 1.18 1.08

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

60 Guardian Global Dividend Growth Fund

financial statements | June 30, 2015

Guardian Global Dividend Growth Fund

NAV, beginning of period $ 6,964,197 $ 4,781,187 $ 208,714,260 $ 157,897,738 $ 215,678,457 $ 162,678,925

Increase (decrease) in NAV from operations 414,844 336,320 15,522,633 11,993,282 15,937,477 12,329,602

Distributions to unitholders: Income (88,462) (52,319) (4,074,902) (3,016,591) (4,163,364) (3,068,910) Capital gains ------(88,462) (52,319) (4,074,902) (3,016,591) (4,163,364) (3,068,910)

Redeemable unit transactions: Proceeds from issuance of units 2,593,926 1,567,157 29,817,248 19,999,377 32,411,174 21,566,534 Reinvested distributions 87,882 52,302 4,018,740 2,998,200 4,106,622 3,050,502 Redemption of units (463,949) (703,971) (25,303,662) (7,417,757) (25,767,611) (8,121,728) 2,217,859 915,488 8,532,326 15,579,820 10,750,185 16,495,308

Net increase (decrease) in NAV 2,544,241 1,199,489 19,980,057 24,556,511 22,524,298 25,756,000

NAV, end of period $ 9,508,438 $ 5,980,676 $ 228,694,317 $ 182,454,249 $ 238,202,755 $ 188,434,925

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 502,043 384,791 12,671,058 10,718,006 Number of units issued 172,435 121,594 1,667,849 1,294,254 Number of units reinvested 5,945 4,006 227,785 192,883 680,423 510,391 14,566,692 12,205,143 Number of units redeemed (30,796) (54,155) (1,421,037) (476,963)

Units issued and outstanding, end of period 649,627 456,236 13,145,655 11,728,180

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

61 Guardian Global Dividend Growth Fund

financial statements | June 30, 2015

Guardian Global Dividend Growth Fund

Financial Statements Supplementary Schedules to the Notes to the Financial Statements of Cash Flows (Unaudited) Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 15,937,477 $ 12,329,602 Guardian Global Dividend Growth Fund (the “Fund”) was formed on May 31, 2010. The primary objective Adjustments for: of the Fund is the achievement of attractive dividend income coupled with long-term growth of capital, Foreign exchange (gain) loss on cash (154,174) (31,153) primarily through investment in a portfolio of equity or equity-related securities of issuers with business Net realized (gains) losses on sale of investments (6,469,377) (1,989,429) operations located throughout the world. Pursuant to an amendment to the Fund’s Declaration of Trust, Change in unrealized (appreciation) effective September 16, 2013, the existing Series A units were renamed as Series W units. The address depreciation in value of investments (5,154,257) (7,136,588) of the Fund and the Manager's principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, Change in unrealized (appreciation) M5L 1E8. depreciation in foreign currency contracts - - Purchases of investments (49,635,060) (40,563,244) Note 3: Increase (decrease) in NAV from operations per unit per series Proceeds from sale of investments 36,635,669 24,985,261 The weighted average number of units outstanding during the period used to calculate the increase (Increase) decrease in short-term securities, net 3,219,187 (438,866) (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in interest and dividends receivable (413,605) (220,397) For the six months ended June 30 2015 2014 Increase (decrease) in accrued expenses due to Manager 7,237 8,616 Series I 13,113,556 11,130,018 Net cash from (used in) operating activities (6,026,903) (13,056,198) Series W 571,011 430,848

Cash flows from (used in) financing activities Note 4: Operating expenses Distributions paid, net of reinvested distributions (54,316) (18,408) The Manager currently charges to the Fund management fees and administration fees, and the annual Proceeds from issuance of units 31,909,191 21,347,084 rates of these fees are as follows: Redemption of units (25,727,180) (8,105,357) Annual management fee rate 2015 2014 Net cash from (used in) financing activities 6,127,695 13,223,319 Series I 0.00% 0.00% Series W 1.60% 1.60% Foreign exchange Net effect of foreign exchange on cash balances 2,322 (421) Annual administration fee rate 2015 2014 Series I 0.22% 0.22% Net increase (decrease) in cash 103,114 166,700 Series W 0.22% 0.22% Cash, net (bank overdraft), beginning of period 170,430 25,447 Cash, net (bank overdraft), end of period $ 273,544 $ 192,147 Note 5: Income taxes The Fund has the following tax losses available to be carried forward and applied against future Cash activity included in operating activities: capital gains or income: Interest received $ 4,386 $ 8,929 As at December 31, 2014 December 31, 2013 Interest paid (3,632) (1,579) Capital losses $ - $ 486,279 Dividends received, net of withholding taxes 4,135,916 3,231,202 Non-capital losses - -

The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

62 Guardian Global Dividend Growth Fund

financial statements | June 30, 2015

Guardian Global Dividend Growth Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 914,040 $ - $ 914,040 0.4% Australia 3.9% 4.9% GBP 150,362 - 150,362 0.1% Belgium 3.4% 3.1% Euro 20,907 - 20,907 0.0% Bermuda - - Other currencies 124,204 - 124,204 0.0% Canada 2.5% 2.9% Net currency exposure $ 1,209,513 $ - $ 1,209,513 0.5% Finland - - France 2.3% 3.2% Financial Instruments Germany 6.3% 4.6% As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Ireland 2.6% 1.8% USD $ 3,186,337 $ - $ 3,186,337 1.5% Israel 1.0% 1.0% GBP 55,789 - 55,789 0.0% Italy 0.5% 0.5% Euro 9,668 - 9,668 0.0% Japan 2.6% - Other currencies - - - - Netherlands 2.8% 1.0% Net currency exposure $ 3,251,794 $ - $ 3,251,794 1.5% Spain 2.6% 3.1% Sweden 1.7% 1.2% If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Switzerland 5.9% 6.3% this would have increased or decreased the Fund's NAV as follows: United Kingdom 10.6% 10.2% As at June 30, 2015 December 31, 2014 United States of America 50.6% 54.4% Currency exposure $ 60,000 $ 163,000 Other countries - - % of NAV 0.0% 0.1% Short-term securities 0.0% 1.5% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 0.7% 0.3% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 8.5% 7.0% Consumer staples 13.7% 15.4% Note 8 (a) (iii): Other price risk: Energy 8.2% 6.4% The table below summarizes the Fund's exposure to other price risk: Financials 14.2% 14.2% As at June 30, 2015 December 31, 2014 Health care 12.3% 13.0% Other price risk $ 236,455,465 $ 211,850,635 Industrials 12.9% 10.8% % of NAV 99.3% 98.2% Information technology 9.5% 11.0% Materials 5.5% 3.5% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, Royalty and income trust units - - this would have increased or decreased the Fund's NAV as follows: Telecommunication services 9.3% 8.7% As at June 30, 2015 December 31, 2014 Utilities 5.2% 8.2% Change in NAV $ 11,823,000 $ 10,593,000 Short-term securities 0.0% 1.5% % of NAV 5.0% 4.9% Other net assets (liabilities) 0.7% 0.3% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

63 Guardian Global Dividend Growth Fund

financial statements | June 30, 2015

Guardian Global Dividend Growth Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 10: Securities lending The summary of the fair value hierarchy for the Fund's investments are as follows: The securities lending income, the values of securities on loan, and the value of collateral held for such loans, are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total For the six months ended June 30 2015 2014 Equity investments $ 236,455,465 $ - $ - $ 236,455,465 Fixed-income investments - - - - Securities lending income $ 36,115 $ 43,934 Short-term securities 470 - - 470 Investment funds - - - - As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ 24,123,844 $ 14,289,761 Total $ 236,455,935 $ - $ - $ 236,455,935 Collateral held for securites on loan 25,330,041 15,004,257 Percentage of total investments 100.0% 0.0% - 100.0% Note 11: Related party unitholders As at December 31, 2014 Level 1 Level 2 Level 3 Total Units of the Fund held by affiliates and officers of the Manager, or other investment funds Equity investments $ 211,850,635 $ - $ - $ 211,850,635 managed by the Manager are as follows: Fixed-income investments - - - - As at June 30, 2015 December 31, 2014 Short-term securities 274,616 2,945,041 - 3,219,657 Investment funds - - - - Series I - number of units 32,869 11,363 Derivatives - assets - - - - Series I - percentage of issued units 0.3% 0.0% Derivatives - liabilities - - - - Series W - number of units - - Total $ 212,125,251 $ 2,945,041 $ - $ 215,070,292 Series W - percentage of issued units - - Percentage of total investments 98.6% 1.4% - 100.0% Note 12: Investments in non-consolidated structured entities The Fund has invested in non-consolidated entities ("NCE") and details of these investments are The summary of significant transfers between levels during the periods are as follows: as follows: For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Total net assets of Fair value of Fund's 30, 2015 Level 2 Level 1 Level 3 Level 2 the NCE investment in NCE Equity investments $ - $ - $ - $ - As at June 30, 2015 Fixed-income investments - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 470 Short-term securities - - - - Investment funds - - - - As at December 31, 2014 Derivatives - assets - - - - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 274,616 Derivatives - liabilities - - - - Total $ - $ - $ - $ -

64 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

EQUITY INVESTMENTS - 95.7% HEALTH CARE - 13.0% CONSUMER DISCRETIONARY - 12.2% 1,409 Aetna Inc. $ 198,607 $ 224,211 2,161 AutoNation Inc. $ 165,925 $ 169,914 1,341 Amgen Inc. 213,394 257,020 5,205 Comcast Corp., Class A 326,864 390,802 1,251 Becton Dickinson and Co. 219,814 221,231 2,900 Daimler AG 281,917 329,336 1,294 Cigna Corp. 126,016 261,711 2,348 Dollarama Inc. 162,945 177,744 1,070 Edwards Lifesciences Corp. 154,040 190,265 2,783 Lennar Corp., Class A * 165,440 177,336 3,830 Gilead Sciences Inc. 451,496 559,828 11,300 NHK Spring Co. Ltd. 167,059 155,527 3,678 Johnson & Johnson 472,622 447,519 22,900 Nissan Motor Co. Ltd. 245,002 297,894 6,300 Novo Nordisk A/S 446,725 428,312 5,000 Persimmon PLC 136,541 193,890 1,827 Quest Diagnostics Inc. * 162,380 165,413 8,000 Sekisui House Ltd. 116,092 158,673 3,700 Sanofi SA * 454,090 454,156 46,800 Taylor Wimpey PLC 166,444 170,730 2,684 UnitedHealth Group Inc. 293,959 408,804 4,227 The Goodyear Tire & Rubber Co. 165,480 159,108 3,193,143 3,618,470 3,844 The Walt Disney Co. 503,146 547,765 INDUSTRIALS - 10.6% 1,000 Volkswagen AG 286,903 288,709 1,700 Adecco SA 167,728 172,369 5,500 WPP PLC 164,644 153,993 2,500 Airbus Group NV 216,653 202,395 3,054,402 3,371,421 2,052 Alaska Air Group Inc. 95,034 165,059 CONSUMER STAPLES - 9.8% 2,500 Boskalis Westminster NV 135,884 152,666 2,547 Archer-Daniels-Midland Co. 151,984 153,331 2,347 Chicago Bridge & Iron Co. NV * 143,283 146,623 1,643 Costco Wholesale Corp. 258,768 277,037 950 Cummins Inc. * 165,781 155,596 3,438 CVS Health Corp. 280,554 450,164 1,189 FedEx Corp. 234,107 252,943 4,000 Imperial Tobacco Group PLC 198,549 240,875 1,157 General Dynamics Corp. 199,019 204,666 6,200 Nestle SA 609,813 559,066 11,800 ITOCHU Corp. 198,743 194,674 6,200 NH Foods Ltd. 111,774 176,740 7,400 Mitsubishi Corp. 154,606 203,246 2,873 The Kroger Co. 189,167 260,080 20,500 Obayashi Corp. 166,209 186,776 3,099 Tyson Foods Inc. 144,656 164,934 2,004 PACCAR Inc. 152,333 159,646 5,500 Unilever PLC 303,833 294,811 1,492 Raytheon Co. 196,159 178,223 58,100 Wilmar International Ltd. 170,340 176,692 3,392 Southwest Airlines Co. 66,037 140,128 2,419,438 2,753,730 9,400 Sumitomo Electric Industries Ltd. 152,813 181,933 ENERGY - 7.1% 3,727 Trinity Industries Inc. * 171,970 122,979 4,649 Atwood Oceanics Inc. * 176,156 153,460 1,282 United Rentals Inc. 165,370 140,238 29,100 BP PLC 255,436 240,057 2,781,729 2,960,160 4,233 Canadian Natural Resources Ltd. 185,898 143,499 INFORMATION TECHNOLOGY - 13.8% 5,882 Exxon Mobil Corp. 627,259 610,972 5,739 Apple Inc. 431,692 898,656 5,800 Neste Oil OYJ 153,857 184,434 2,846 Broadcom Corp. 166,211 182,948 6,700 Repsol SA * 161,090 146,789 7,700 Brother Industries Ltd. 136,735 136,225 1,700 Tesoro Corp. 149,298 179,150 1,400 Cap Gemini SA * 156,166 154,569 6,711 Transocean Ltd. * 167,032 135,060 10,679 Cisco Systems Inc. 399,028 366,104 2,414 Valero Energy Corp. 138,901 188,662 6,177 Corning Inc. 148,932 152,152 2,014,927 1,982,083 1,063 F5 Networks Inc. 165,589 159,717 FINANCIALS - 19.0% 5,308 Facebook Inc. 413,673 568,346 17,000 3i Group PLC 130,531 172,400 11,000 Infineon Technologies AG 160,683 170,304 3,500 Ageas SA 164,393 168,235 10,300 Konica Minolta Inc. 165,230 150,171 9,200 AXA SA * 257,338 289,608 1,660 Lam Research Corp. * 166,506 168,593 2,647 Bank of Montreal 208,622 195,904 4,300 SAP SE, ADR 396,504 374,438 2,894 Berkshire Hathaway Inc., Class B 535,294 491,769 1,484 Skyworks Solutions Inc. 68,307 192,867 54,500 BOC Hong Kong Holdings Ltd. 294,026 283,483 3,233 Total System Services Inc. 165,146 168,594 8,600 Credit Agricole SA * 162,881 159,585 3,140,402 3,843,684 762 Everest Re Group Ltd. * 150,398 173,150 MATERIALS - 3.9% 9,300 ING Groep NV 188,119 191,591 6,500 Boliden AB 125,099 147,776 3,400 Investor AB 167,619 158,024 2,120 CF Industries Holdings Inc. 161,435 170,131 6,028 JPMorgan Chase & Co. 493,761 509,940 2,612 Dow Chemical Co 148,743 166,864 4,600 MS&AD Insurance Group Holdings Inc. 177,596 178,954 1,726 Eastman Chemical Co. 165,998 176,308 8,718 Old Republic International Corp. * 165,652 170,117 1,304 LyondellBasell Industries NV, Class A * 165,466 168,529 1,010 PartnerRe Ltd. 165,254 162,031 2,432 The Mosaic Co. 160,642 142,248 1,755 Prudential Financial Inc. 183,892 191,760 2,900 Voestalpine AG * 146,938 150,589 4,876 Royal Bank of Canada 367,816 372,429 1,074,321 1,122,445 2,700 Societe Generale SA * 159,269 157,255 ROYALTY AND INCOME TRUST UNITS - 0.7% 5,000 Sumitomo Mitsui Financial Group Inc. 216,947 278,483 2,273 Health Care REIT Inc. 216,002 186,241 13,600 Sun Hung Kai Properties Ltd. 211,355 275,078 500 Swiss Life Holding AG 156,105 143,006 TELECOMMUNICATION SERVICES - 3.3% 2,100 Swiss Re AG 233,667 232,143 8,400 Nippon Telegraph & Telephone Corp. 294,496 379,963 1,273 The Goldman Sachs Group Inc. 324,729 331,826 9,270 Verizon Communications Inc. 524,629 539,426 5,115,264 5,286,771 819,125 919,389

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements. 65 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

Schedule of Investment Portfolio (Unaudited) (continued) As at June 30, 2015 Number of Shares/ Units/ Average Fair Par Value Security Cost Value

UTILITIES - 2.3% 8,800 Electricite de France SA $ 288,104 $ 244,822 5,279 Exelon Corp. * 223,717 207,076 3,351 PG&E Corp. 225,909 205,413 737,730 657,311 Total equity investments 24,566,483 26,701,705 Transaction costs (22,693) - Total investments - 95.7% 24,543,790 26,701,705

SHORT-TERM SECURITIES - 3.2% 48,540 Guardian Canadian Short-Term Investment Fund, Series I 485,396 485,396 345,000 Province of Ontario 0.09%, July 09, 2015 420,757 430,696 Total short-term securities 906,153 916,092

Other net assets - 1.1% 303,335 Net assets attributable to unitholders- 100.0% $ 27,921,132

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

66 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 435,128 $ 599,043 Investments $ 26,701,705 $ 35,234,760 Interest for distribution purposes 713 4,505 Cash, net 65,592 39,681 Net realized gains (losses) on sale of investments 3,239,128 2,008,630 Due from brokers - - Change in unrealized appreciation Short-term securities 916,092 517,652 (depreciation) in value of investments (381,333) 175,118 Subscriptions receivable 137,068 25,231 Net gains (losses) on investments 3,293,636 2,787,296 Interest and dividends receivable 108,579 94,740 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 27,929,036 35,912,064 Net gains (losses) on derivatives - - Securities lending income (Note 10) 4,016 3,945 Liabilities Foreign exchange gains (losses) on cash 78,406 (5,239) Current liabilities Total income (loss) 3,376,058 2,786,002 Bank overdraft - - Due to brokers - 20,000 Operating expenses (Note 4) Redemptions payable 1,551 - Administration fee 33,912 42,132 Distributions Payable - - Management fee 406 232 Accrued expenses due to Manager 6,353 8,445 Independent review committee costs 482 411 Unrealized depreciation on Interest charges 864 267 foreign currency contracts - - Transaction costs 37,877 62,548 7,904 28,445 Foreign withholding taxes 68,585 72,045 Total operating expenses 142,126 177,635 Net assets attributable to unitholders ("NAV") $ 27,921,132 $ 35,883,619 Increase (decrease) in NAV from operations $ 3,233,932 $ 2,608,367

NAV per series Increase (decrease) in NAV from operations per series Series W $ 49,046 $ 43,684 Series W $ 5,362 $ 401 Series I 27,872,086 35,839,935 Series I 3,228,570 2,607,966

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 11.12 $ 9.90 Series W $ 1.22 $ 0.14 Series I 10.41 9.20 Series I 1.20 0.70

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

67 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

NAV, beginning of period $ 43,684 $ 1,120 $ 35,839,935 $ 31,534,025 $ 35,883,619 $ 31,535,145

Increase (decrease) in NAV from operations 5,362 401 3,228,570 2,607,966 3,233,932 2,608,367

Distributions to unitholders from: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units - 39,804 1,757,895 3,261,338 1,757,895 3,301,142 Reinvested distributions - - - - - Redemption of units - - (12,954,314) (3,013,701) (12,954,314) (3,013,701) - 39,804 (11,196,419) 247,637 (11,196,419) 287,441

Net increase (decrease) in NAV 5,362 40,205 (7,967,849) 2,855,603 (7,962,487) 2,895,808

NAV, end of period $ 49,046 $ 41,325 $ 27,872,086 $ 34,389,628 $ 27,921,132 $ 34,430,953

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 4,411 119 3,895,823 3,624,640 Number of units issued - 3,981 171,034 355,548 Number of units reinvested - - - - 4,411 4,100 4,066,857 3,980,188 Number of units redeemed - - (1,390,561) (320,959)

Units issued and outstanding, end of period 4,411 4,100 2,676,296 3,659,229

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

68 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 3,233,932 $ 2,608,367 Guardian Global Equity Fund (the “Fund”) was formed on July 10, 1998 . The primary objective of the Adjustments for: Fund is the achievement of long-term growth of capital, primarily through the investment in a portfolio of Foreign exchange (gain) loss on cash (78,406) 5,239 equity or equity-related securities of issuers with business operations located throughout the world. Net realized (gains) losses on sale of investments (3,239,128) (2,008,630) Pursuant to an amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Change in unrealized (appreciation) Series A units were renamed as Series W units. The initial subscription for Series W units was made on depreciation in value of investments 381,333 (175,118) September 30, 2013. The address of the Fund and the Manager's principal business office is Suite 3100, Change in unrealized (appreciation) 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in foreign currency contracts - - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (21,224,565) (32,825,972) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments 32,662,854 31,841,248 (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in short-term securities, net (398,440) 425,516 For the six months ended June 30 2015 2014 (Increase) decrease in interest and dividends receivable (13,839) 285 Series I 2,701,255 3,735,057 Increase (decrease) in accrued expenses due to Manager (2,092) (4,307) Series W 4,411 2,769 Net cash from (used in) operating activities 11,321,649 (133,372) Note 4: Operating expenses Cash flows from (used in) financing activities The Manager currently charges to the Fund management fees and administration fees, and the annual Distributions paid, net of reinvested distributions - - rates of these fees are as follows: Proceeds from issuance of units 1,646,058 3,296,519 Annual management fee rate 2015 2014 Redemption of units (12,952,763) (2,936,888) Series I 0.00% 0.00% Net cash from (used in) financing activities (11,306,705) 359,631 Series W 1.50% 1.50%

Foreign exchange Annual administration fee rate 2015 2014 Net effect of foreign exchange on cash balances 10,967 (950) Series I 0.22% 0.22% Series W 0.22% 0.22% Net increase (decrease) in cash 25,911 225,309 Cash, net (bank overdraft), beginning of period 39,681 128 Note 5: Income taxes Cash, net (bank overdraft), end of period $ 65,592 $ 225,437 The Fund has the following tax losses available to be carried forward and applied against future capital gains or income: Cash activity included in operating activities: As at December 31, 2014 December 31, 2013 Interest received $ 713 $ 4,505 Capital losses $ - $ - Interest paid (864) (267) Non-capital losses - - Dividends received, net of withholding taxes 352,704 527,283 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

69 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 477,454 $ - $ 477,454 1.7% Australia - - GBP 9,224 - 9,224 0.0% Austria 0.5% 0.6% Euro - - - - Belgium 0.6% - Other currencies 20,253 - 20,253 0.1% Bermuda 1.2% 1.3% Net currency exposure $ 506,931 $ - $ 506,931 1.8% Canada 3.1% 3.4% Denmark 1.5% - Financial Instruments Finland 0.7% 2.0% As at December 31, 2014 Derivatives Total % of NAV excluding derviatives France 5.4% 3.3% USD $ 422,982 $ - $ 422,982 1.2% Germany 4.1% 5.2% GBP - - - - Hong Kong 2.0% 1.3% Euro - - - - Israel - 1.5% Other currencies - - - - Italy - 0.6% Net currency exposure $ 422,982 $ - $ 422,982 1.2% Japan 9.8% 8.2% Jersey 0.6% - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, this Liberia - 0.7% would have increased or decreased the Fund's NAV as follows: Netherlands 3.0% 1.8% As at June 30, 2015 December 31, 2014 Norway - - Currency exposure $ 25,000 $ 21,000 Singapore 0.6% 1.8% % of NAV 0.1% 0.1% South Korea - - In practice, the actual trading results could differ, and the difference could be material. Spain 0.5% - Sweden 1.1% 2.6% Note 8 (a) (ii): Interest rate risk: Switzerland 4.4% 1.8% The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be United Kingdom 4.8% 6.8% significant to the Fund as the Fund invests predominantly in equity securities. United States of America 51.8% 55.3% Other countries - - Note 8 (a) (iii): Other price risk: Short-term securities 3.2% 1.4% The table below summarizes the Fund's exposure to other price risk: Other net assets (liabilities) 1.1% 0.4% As at June 30, 2015 December 31, 2014 Total 100.0% 100.0% Other price risk $ 26,701,705 $ 35,234,760 % of NAV 95.7% 98.2% Investment sectors, as at June 30, 2015 December 31, 2014 Consumer discretionary 12.2% 13.8% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this Consumer staples 9.8% 10.9% would have increased or decreased the Fund's NAV as follows: Energy 7.1% 7.2% As at June 30, 2015 December 31, 2014 Financials 19.0% 19.4% Change in NAV $ 1,335,000 $ 1,762,000 Health care 13.0% 11.4% % of NAV 4.8% 4.9% Industrials 10.6% 11.0% In practice, the actual trading results could differ, and the difference could be material. Information technology 13.8% 14.7% Materials 3.9% 4.4% Royalty and income trust units 0.7% - Telecommunication services 3.3% 2.7% Utilities 2.3% 2.7% Short-term securities 3.2% 1.4% Other net assets (liabilities) 1.1% 0.4% Total 100.0% 100.0%

70 Guardian Global Equity Fund

financial statements | June 30, 2015

Guardian Global Equity Fund

The summary of significant transfers between levels during the periods are as follows: Note 12: Investments in non-consolidated structured entities For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to The Fund has invested in non-consolidated entities ("NCE") and details of these investments are 30, 2015 Level 2 Level 1 Level 3 Level 2 as follows: Equity investments $ - $ - $ - $ - Total net assets of Fair value of Fund's Fixed-income investments - - - - the NCE investment in NCE Short-term securities - - - - As at June 30, 2015 Investment funds - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 485,396 Derivatives - assets - - - - Derivatives - liabilities - - - - As at December 31, 2014 Total $ - $ - $ - $ - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 123,880

71 Guardian Growth & Income Fund

financial statements | June 30, 2015

Guardian Growth & Income Fund

EQUITY INVESTMENTS - 85.6% INDUSTRIALS - 6.0% CONSUMER DISCRETIONARY - 10.2% 600 Canadian National Railway Co. $ 32,822 $ 43,235 750 Cineplex Inc. $ 24,216 $ 35,265 1,900 CAE Inc. 26,420 28,253 550 Dollarama Inc. 17,791 41,634 700 Progressive Waste Solutions Ltd. 18,907 23,450 900 Gildan Activewear Inc. 25,833 37,341 78,149 94,938 850 Quebecor Inc., Class B 22,627 26,537 MATERIALS - 6.8% 750 Shaw Communications Inc., Class B 16,342 20,400 250 Agrium Inc. 22,859 33,093 106,809 161,177 1,500 Goldcorp Inc. 47,937 30,404 CONSUMER STAPLES - 2.2% 900 Labrador Iron Ore Royalty Corp. 23,704 12,834 552 Loblaw Cos. Ltd. 26,628 34,841 450 West Fraser Timber Co. Ltd. 23,199 30,884 117,699 107,215 ENERGY - 23.3% ROYALTY AND INCOME TRUST UNITS - 4.7% 950 AltaGas Ltd. 32,974 36,138 400 Boardwalk REIT 25,404 22,652 1,050 ARC Resources Ltd. 25,235 22,470 650 Canadian REIT 28,045 27,593 1,200 Baytex Energy Corp. 41,882 23,316 2,000 Chartwell Retirement Residences 18,649 22,960 1,050 Cameco Corp. 20,858 18,764 72,098 73,205 850 Canadian Natural Resources Ltd. 26,282 28,815 TELECOMMUNICATION SERVICES - 3.1% 1,850 Cenovus Energy Inc. 52,001 36,945 1,150 TELUS Corp. 36,720 49,485 950 Crescent Point Energy Corp. 39,888 24,348 350 Enbridge Inc. 19,211 20,444 UTILITIES - 2.7% 1,000 Keyera Corp. 26,125 41,700 600 Fortis Inc. 20,181 21,048 950 Mullen Group Ltd. 21,510 19,390 1,400 Northland Power Inc. 21,750 22,148 700 Pembina Pipeline Corp. 20,413 28,259 41,931 43,196 650 Peyto Exploration & Development Corp. 21,941 19,845 Total equity investments 1,211,288 1,351,822 750 Suncor Energy Inc. 24,531 25,800 Transaction costs (956) - 400 Vermilion Energy Inc. 22,145 21,580 Total investments - 85.6% 1,210,332 1,351,822 394,996 367,814 FINANCIALS - 26.6% SHORT-TERM SECURITIES - 5.0% 1,150 Bank of Nova Scotia 63,742 74,140 7,890 Guardian Canadian Short-Term Investment 500 Brookfield Asset Management Inc., Class A 22,811 21,820 Fund, Series I 78,897 78,897 450 Canadian Imperial Bank of Commerce 34,815 41,432 Total short-term securities 78,897 78,897 750 CI Financial Corp. 24,852 25,200 400 Intact Financial Corp. 24,799 34,716 Other net assets - 9.4% 147,873 2,400 Manulife Financial Corp. 33,438 55,703 Net assets attributable to unitholders- 100.0% $ 1,578,592 700 Power Financial Corp. 18,913 25,109 850 Royal Bank of Canada 51,403 64,923 1,450 Toronto-Dominion Bank 61,485 76,908 336,258 419,951

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

72 Guardian Growth & Income Fund

financial statements | June 30, 2015

Guardian Growth & Income Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 23,622 $ 22,081 Investments $ 1,351,822 $ 1,279,152 Interest for distribution purposes 199 170 Cash, net 11,383 5,873 Net realized gains (losses) on sale of investments 14,229 12,369 Due from brokers - - Change in unrealized appreciation Short-term securities 78,897 53,705 (depreciation) in value of investments (45,660) 105,337 Subscriptions receivable 150,000 - Net gains (losses) on investments (7,610) 139,957 Interest and dividends receivable 3,942 4,066 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 1,596,044 1,342,796 Net gains (losses) on derivatives - - Securities lending income (Note 10) - - Liabilities Foreign exchange gains (losses) on cash 1 - Current liabilities Total income (loss) (7,609) 139,957 Bank overdraft - - Due to brokers 17,066 - Operating expenses (Note 4) Redemptions payable - - Administration fee 1,613 1,476 Distributions payable - - Management fee 518 10 Accrued expenses due to Manager 386 286 Independent review committee costs 18 18 Unrealized depreciation on Interest charges - - foreign currency contracts - - Transaction costs (Note 5) 233 190 17,452 286 Foreign withholding taxes - - Total operating expenses 2,382 1,694 Net assets attributable to unitholders ("NAV") $ 1,578,592 $ 1,342,510 Increase (decrease) in NAV from operations $ (9,991) $ 138,263

NAV per series Increase (decrease) in NAV from operations per series Series W $ 60,150 $ 1,117 Series W $ (1,399) $ 106 Series I 1,518,442 1,341,393 Series I (8,592) 138,157

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.56 $ 10.79 Series W $ (0.25) $ 1.04 Series I 11.42 11.66 Series I (0.07) 1.23

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

73 Guardian Growth & Income Fund

financial statements | June 30, 2015

Guardian Growth & Income Fund

NAV, beginning of period $ 1,117 $ 1,072 $ 1,341,393 $ 1,263,616 $ 1,342,510 $ 1,264,688

Increase (decrease) in NAV from operations (1,399) 106 (8,592) 138,157 (9,991) 138,263

Distributions to unitholders: Income (484) (15) (20,224) (19,566) (20,708) (19,581) Capital gains ------(484) (15) (20,224) (19,566) (20,708) (19,581)

Redeemable unit transactions: Proceeds from issuance of units 70,732 - 185,641 538 256,373 538 Reinvested distributions 484 15 20,224 19,566 20,708 19,581 Redemption of units (10,300) - - (400) (10,300) (400) 60,916 15 205,865 19,704 266,781 19,719

Net increase (decrease) in NAV 59,033 106 177,049 138,295 236,082 138,401

NAV, end of period $ 60,150 $ 1,178 $ 1,518,442 $ 1,401,911 $ 1,578,592 $ 1,403,089

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 103 101 115,075 111,812 Number of units issued 6,507 - 16,139 47 Number of units reinvested 46 2 1,747 1,630 6,656 103 132,961 113,489 Number of units redeemed (958) - - (34)

Units issued and outstanding, end of period 5,698 103 132,961 113,455

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

74 Guardian Growth & Income Fund

financial statements | June 30, 2015

Guardian Growth & Income Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ (9,991) $ 138,263 Guardian Growth & Income Fund (the “Fund”) was formed on September 30, 2012. The primary objective Adjustments for: of the Fund is the achievement of a balance of stable income generation and capital appreciation by Foreign exchange (gain) loss on cash (1) - investing primarily in Canadian dividend-paying equity investments, income trusts and other flow-throw Net realized (gains) losses on sale of investments (14,229) (12,369) securities. Pursuant to an amendment to the Fund’s Declaration of Trust, effective September 16, 2013, Change in unrealized (appreciation) the existing Series A units were renamed as Series W units. The initial subscription for Series W units depreciation in value of investments 45,660 (105,337) was made on September 30, 2013. The address of the Fund and the Manager's principal business office Change in unrealized (appreciation) is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in foreign currency contracts - - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (159,560) (102,926) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments 72,525 106,066 (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in short-term securities, net (25,192) (28,168) For the six months ended June 30 2015 2014 (Increase) decrease in interest and dividends receivable 124 (603) Series I 116,710 112,264 Increase (decrease) in accrued expenses due to Manager 100 47 Series W 5,671 102 Net cash from (used in) operating activities (90,564) (5,027) Note 4: Operating expenses Cash flows from (used in) financing activities The Manager currently charges to the Fund management fees and administration fees, and the annual Distributions paid, net of reinvested distributions - - rates of these fees are as follows: Proceeds from issuance of units 106,373 538 Annual management fee rate 2015 2014 Redemption of units (10,300) (400) Series I 0.00% 0.00% Net cash from (used in) financing activities 96,073 138 Series W 1.50% 1.50%

Foreign exchange Annual administration fee rate 2015 2014 Net effect of foreign exchange on cash balances 1 - Series I 0.20% 0.20% Series W 0.20% 0.20% Net increase (decrease) in cash 5,510 (4,889) Cash, net (bank overdraft), beginning of period 5,873 25,773 Note 5: Income taxes Cash, net (bank overdraft), end of period $ 11,383 $ 20,884 The Fund has the following tax losses available to be carried forward and applied against future capital gains or income: Cash activity included in operating activities: As at December 31, 2014 December 31, 2013 Interest received $ 199 $ 170 Capital losses $ 4,916 $ - Interest paid - - Non-capital losses - - Dividends received, net of withholding taxes 23,746 21,478 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

75 Guardian Growth & Income Fund

financial statements | June 30, 2015

Guardian Growth & Income Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 348 $ - $ 348 0.0% Australia - - GBP - - - - Brazil - - Euro - - - - Canada 85.6% 95.3% Other currencies - - - - China - - Net currency exposure $ 348 $ - $ 348 0.0% France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ - $ - $ - - Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ - $ - $ - - Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Taiwan - - this would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ - $ - Other countries - - % of NAV 0.0% 0.0% Short-term securities 5.0% 4.0% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 9.4% 0.7% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 10.2% 11.4% Consumer staples 2.2% 2.3% Note 8 (a) (iii): Other price risk: Energy 23.3% 26.3% The table below summarizes the Fund's exposure to other price risk: Financials 26.6% 29.7% As at June 30, 2015 December 31, 2014 Health care - - Other price risk $ 1,351,822 $ 1,279,152 Industrials 6.0% 7.5% % of NAV 85.6% 95.3% Information technology - - Materials 6.8% 6.8% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, Royalty and income trust units 4.7% 5.2% this would have increased or decreased the Fund's NAV as follows: Telecommunication services 3.1% 3.4% As at June 30, 2015 December 31, 2014 Utilities 2.7% 2.7% Change in NAV $ 68,000 $ 64,000 Short-term securities 5.0% 4.0% % of NAV 4.3% 4.8% Other net assets (liabilities) 9.4% 0.7% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

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Guardian Growth & Income Fund

Note 12: Investments in non-consolidated structured entities The summary of significant transfers between levels during the periods are as follows: The Fund has invested in non-consolidated entities ("NCE") and details of these investments are For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to as follows: 30, 2015 Level 2 Level 1 Level 3 Level 2 Total net assets of Fair value of Fund's Equity investments $ - $ - $ - $ - the NCE investment in NCE Fixed-income investments - - - - As at June 30, 2015 Short-term securities - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 78,897 Investment funds - - - - Derivatives - assets - - - - As at December 31, 2014 Derivatives - liabilities - - - - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 53,705 Total $ - $ - $ - $ -

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Guardian High Yield Bond Fund

CANADIAN BONDS - 53.0% CORPORATE - Continued CORPORATE - 53.0% 2,075,000 USD Millar Western Forest Products Ltd. 1,500,000 AGT Food & Ingredients Inc. 8.50%, April 1, 2021 $ 1,889,823 $ 2,506,352 9.00%, February 14, 2018 $ 1,492,500 $ 1,610,938 500,000 USD New Gold Inc. 2,350,000 Athabasca Oil Corp. 6.25%, November 15, 2022 553,792 619,546 7.50%, November 19, 2017 2,344,063 2,153,188 2,000,000 Newalta Corp. 1,000,000 AutoCanada Inc. 5.88%, April 1, 2021 2,000,000 2,007,918 5.63%, May 25, 2021 1,000,000 1,001,250 1,000,000 USD Norbord Inc. 500,000 Bank of Nova Scotia 6.25%, April 15, 2023 1,264,207 1,270,303 2.40%, October 28, 2019 499,885 515,315 149,000 North American Energy Partners Inc. 1,500,000 USD Banro Corp. 9.13%, April 7, 2017 149,000 148,131 10.00%, March 1, 2017 1,497,828 1,374,081 4,250,000 NRL Energy Investments Ltd. 1,000,000 USD Baytex Energy Corp. 8.25%, April 13, 2018 3,485,803 3,203,438 6.75%, February 17, 2021 1,052,004 1,249,495 1,000,000 USD Paramount Resources Ltd. 500,000 USD Baytex Energy Corp. 6.88%, June 30, 2023 1,215,893 1,257,818 5.13%, June 1, 2021 549,189 588,334 1,500,000 Perpetual Energy Inc. 850,000 Bombardier Inc. 8.75%, July 23, 2019 1,500,000 1,349,063 7.35%, December 22, 2026 793,375 837,250 750,000 River Cree Enterprises LP 1,000,000 Canadian Energy Services & Technology Corp. 11.00%, January 20, 2021 789,375 783,281 7.38%, April 17, 2020 1,000,000 1,010,625 1,250,000 Savanna Energy Services Corp. 1,061,363 Canadian International Oil Corp. 7.00%, May 25, 2018 1,247,500 1,140,625 11.00%, May 2, 2016 1,046,363 1,045,443 2,000,000 Shaw Communications Inc. 2,500,000 Cascades Inc. 4.35%, January 31, 2024 2,106,500 2,136,551 5.50%, July 15, 2021 2,470,000 2,479,375 1,000,624 Sherritt International Corp. 1,494,000 Centric Health Corp. 8.00%, November 15, 2018 1,000,624 984,364 8.63%, April 18, 2018 1,452,559 1,247,490 341,102 Sherritt International Corp. 1,075,971 Data & Audio Visual Enterprises Holdings Inc. 7.50%, September 24, 2020 326,605 323,905 15.00%, September 25, 2018 1,075,971 215,194 1,000,000 Sherritt International Corp. 1,250,000 Data & Audio Visual Enterprises Wireless Inc. 7.88%, October 11, 2022 980,000 925,833 9.50%, April 29, 2018 1,250,000 1,062,500 1,000,000 Southern Pacific Resource Corp. 406,633 Data & Audio Visual Enterprises Wireless, Private Placement 0.00%, January 25, 2018 950,000 47,500 0.00%, September 30, 2099 329,067 406,633 2,500,000 Superior Plus LP 900,000 USD Fairfax Financial Holdings Ltd. 6.50%, December 9, 2021 2,500,000 2,604,167 7.38%, April 15, 2018 928,815 1,254,892 1,000,000 USD Taseko Mines Ltd. 1,000,000 USD Fairfax Financial Holdings Ltd. 7.75%, April 15, 2019 993,016 958,189 7.75%, July 15, 2037 972,141 1,411,722 1,000,000 Transcontinental Inc. 517,000 USD First Quantum Minerals Ltd. 3.90%, May 13, 2019 1,000,000 1,045,533 6.75%, February 15, 2020 567,951 627,701 1,500,000 Trevali Minining Corp. 517,000 USD First Quantum Minerals Ltd. 12.50%, May 30, 2019 1,470,000 1,455,000 7.00%, February 15, 2021 567,951 620,440 1,750,000 Wells Fargo Canada Corp. 250,000 USD First Quantum Minerals Ltd. 3.04%, January 29, 2021 1,769,233 1,838,109 7.25%, May 15, 2022 271,639 299,239 Total Canadian bonds 64,768,107 63,831,774 1,500,000 Ford Credit Canada Ltd. 2.63%, November 21, 2016 1,509,623 1,521,748 UNITED STATES BONDS - 34.8% 2,000,000 Ford Credit Canada Ltd. CORPORATE - 34.8% 4.88%, February 8, 2017 2,148,200 2,102,511 1,500,000 USD AK Steel Corp. 1,500,000 Ford Credit Canada Ltd. 7.63%, May 15, 2020 1,490,326 1,568,372 2.94%, February 19, 2019 1,526,250 1,553,574 1,785,192 USD Allied Nevada Gold Corp. 1,395,000 GFL Environmental Corp. 12.00%, March 12, 2016 2,245,879 2,228,732 7.50%, June 18, 2018 1,370,089 1,411,566 2,375,000 Allied Nevada Gold Corp. 600,000 USD GFL Environmental Corp. 8.75%, June 1, 2019 2,170,428 463,125 7.88%, April 1, 2020 761,825 771,545 1,000,000 USD Amkor Technology Inc. 2,000,000 Golf Town Canada Inc. 6.38%, October 1, 2022 1,048,175 1,268,742 10.50%, July 24, 2018 1,880,000 1,580,000 1,000,000 USD Armstrong Energy Inc. 1,500,000 USD HudBay Minerals Inc. 11.75%, December 15, 2019 954,710 895,766 9.50%, October 1, 2020 1,747,281 1,994,407 1,000,000 USD CCO Holdings LLC 1,500,000 USD IAMGOLD Corp. 5.25%, September 30, 2022 991,852 1,232,849 6.75%, October 1, 2020 1,458,180 1,577,735 450,000 USD CHC Helicopter SA 1,000,000 Iron Mountain Canada Operations ULC 9.25%, October 15, 2020 442,652 411,522 6.13%, August 15, 2021 1,000,000 1,038,750 1,000,000 USD CNG Holdings Inc. 1,000,000 Kruger Products LP 9.38%, May 15, 2020 955,556 911,372 8.00%, August 9, 2018 1,000,000 1,046,458 1,690,000 USD Cott Beverages Inc. 2,000,000 USD Lightstream Resources Ltd. 6.75%, January 1, 2020 2,005,196 2,194,285 8.63%, February 1, 2020 2,013,987 1,616,749

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian High Yield Bond Fund

Schedule of Investment Portfolio (Unaudited) (continued) As at June 30, 2015 Number of Number of Shares/ Units/ Average Fair Shares/ Units/ Average Fair Par Value Security Cost Value Par Value Security Cost Value

CORPORATE - Continued COMMON STOCKS - 0.3% 1,000,000 USD DISH DBS Corp. 72,000 Banro Corp., Warrants (02Mar17) $ - $ - 4.25%, April 1, 2018 $ 1,035,848 $ 1,273,424 80,000 Canadian International Oil Corp. 1,000,000 USD DISH DBS Corp. Warrants (31Dec49) - - 5.88%, November 15, 2024 1,289,454 1,202,425 73,538 Connacher Oil and Gas Ltd. 1,364,732 143,399 500,000 USD DPL Inc. 18,000 Data & Audio Visual Enterprises Holdings Inc., 7.25%, October 15, 2021 553,988 661,681 Warrants (25Sep18) - - 1,000,000 USD Frontier Communications Corp. 13,000 Insight Health Services Holdings 434,614 - 8.75%, April 15, 2022 1,259,979 1,262,687 62,366 Lone Pine Resources Canada Ltd., 1,000,000 USD Huntington Ingalls Industries Inc. Class A, Private Placement 248,804 103,477 7.13%, March 15, 2021 961,008 1,329,605 500,000 Lone Pine Resources Canada Ltd., 138,000 USD Iron Mountain Inc. Class C, Private Placement - 1 8.38%, August 15, 2021 147,374 178,317 62,366 Lone Pine Resources Canada Ltd., 850,000 USD JBS USA LLC / JBS USA Finance Inc. Private Placement 248,805 78 5.75%, June 15, 2025 1,039,120 1,051,583 184,800 Trevali Mining Corp., Warrants (30May19) - 60,614 350,000 USD Kinder Morgan Inc. Total common stocks 2,296,955 307,569 7.25%, June 1, 2018 356,763 493,126 1,000,000 USD Magnum Hunter Resources Corp. EXCHANGE TRADED FUNDS - 7.0% 9.75%, May 15, 2020 983,255 1,123,610 65,000 iShares iBoxx $ High Yield Corporate 1,500,000 USD Midcontinent Express Pipeline LLC Bond ETF 7,462,594 7,206,082 6.70%, September 15, 2019 2,052,119 2,035,119 25,000 SPDR Barclays Capital High Yield 1,000,000 Morgan Stanley Bond ETF 1,106,149 1,199,453 4.90%, February 23, 2017 1,077,500 1,054,682 Total exchange-traded funds 8,568,743 8,405,535 1,000,000 USD NGPL PipeCo LLC Transaction costs (2,158) - 7.12%, December 15, 2017 1,182,147 1,285,909 Total investments - 95.1% 116,035,985 114,292,690 1,000,000 USD NRG Energy Inc. 8.25%, September 1, 2020 979,061 1,310,878 SHORT-TERM SECURITIES - 2.7% 750,000 USD NRG Energy Inc. 330,043 Guardian Canadian Short-Term Investment 6.25%, May 1, 2024 900,453 934,000 Fund, Series I 3,300,427 3,300,427 1,000,000 USD PBF Holding Co. LLC Total short-term securities 3,300,427 3,300,427 8.25%, February 15, 2020 981,410 1,326,483 1,350,000 USD Reynolds Group Issuer Inc. Forward currency contracts - 0.3% 382,377 5.75%, October 15, 2020 1,754,401 1,731,763 Other net assets - 1.9% 2,270,134 2,000,000 USD Rockies Express Pipeline LLC Net assets attributable to unitholders- 100.0% $120,245,628 6.00%, January 15, 2019 2,636,763 2,615,513 400,000 USD Smithfield Foods Inc. 6.63%, August 15, 2022 402,317 534,963 2,000,000 USD Sprint Corp. 7.25%, September 15, 2021 2,410,777 2,440,730 500,000 The Goldman Sachs Group Inc. 3.38%, February 1, 2018 499,340 521,762 210,000 USD United Refining Co. 10.50%, February 28, 2018 198,371 275,874 1,000,000 USD United States Steel Corp. 7.38%, April 1, 2020 1,082,569 1,310,878 546,000 USD Verizon Communications Inc. 2.50%, September 15, 2016 624,826 692,921 800,000 USD Verizon Communications Inc. 2.00%, November 01, 2016 1,036,141 1,009,191 2,525,000 USD Wynn Las Vegas LLC 4.25%, May 30, 2023 2,654,580 2,915,923 Total United States bonds 40,404,338 41,747,812

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian High Yield Bond Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ - $ 45 Investments $ 114,292,690 $ 91,043,462 Interest for distribution purposes 3,855,691 3,408,994 Cash, net 387,644 349,456 Net realized gains (losses) on sale of investments (415,150) 1,445,236 Due from brokers - - Change in unrealized appreciation Short-term securities 3,300,427 17,379,656 (depreciation) in value of investments 1,758,833 792,319 Subscriptions receivable 46,041 94,788 Net gains (losses) on investments 5,199,374 5,646,594 Interest and dividends receivable 1,885,109 1,642,884 Net realized gains (losses) on foreign currency contracts (859,804) 354,859 Unrealized appreciation on Change in unrealized appreciation foreign currency contracts (Note 2k) 382,377 74,931 (depreciation) on foreign currency contracts 307,446 - 120,294,288 110,585,177 Net gains (losses) on derivatives (552,358) 354,859 Securities lending income (Note 10) - 333 Liabilities Foreign exchange gains (losses) on cash 683,822 61,373 Current liabilities Total income (loss) 5,330,838 6,063,159 Bank overdraft - - Due to brokers - 60,000 Operating expenses (Note 4) Redemptions payable 26,779 3,198 Administration fee 112,731 92,099 Distributions payable 207 3,202 Management fee 3,147 479 Accrued expenses due to Manager 21,674 20,502 Independent review committee costs 1,458 1,473 Unrealized depreciation on Interest charges 810 55 foreign currency contracts (Note 2k) - - Transaction costs 1,630 2,755 48,660 86,902 Foreign withholding taxes 26,666 7 Total operating expenses 146,442 96,868 Net assets attributable to unitholders ("NAV") $ 120,245,628 $ 110,498,275 Increase (decrease) in NAV from operations $ 5,184,396 $ 5,966,291

NAV per series Increase (decrease) in NAV from operations per series Series W $ 492,068 $ 396,857 Series W $ 16,623 $ (55) Series I 119,753,560 110,101,418 Series I 5,167,773 5,966,346

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 9.69 $ 9.61 Series W $ 0.37 $ (0.01) Series I 10.31 10.21 Series I 0.46 0.70

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian High Yield Bond Fund

NAV, beginning of period $ 396,857 $ 18,154 $ 110,101,418 $ 98,281,297 $ 110,498,275 $ 98,299,451

Increase (decrease) in NAV from operations 16,623 (55) 5,167,773 5,966,346 5,184,396 5,966,291

Distributions to unitholders from: Income (12,837) (4,238) (4,277,741) (3,301,631) (4,290,578) (3,305,869) Capital gains ------(12,837) (4,238) (4,277,741) (3,301,631) (4,290,578) (3,305,869)

Redeemable unit transactions: Proceeds from issuance of units 99,634 224,357 8,088,496 18,598,704 8,188,130 18,823,061 Reinvested distributions 12,256 4,238 4,277,741 3,289,790 4,289,997 3,294,028 Redemption of units (20,465) - (3,604,127) (21,205,574) (3,624,592) (21,205,574) 91,425 228,595 8,762,110 682,920 8,853,535 911,515

Net increase (decrease) in NAV 95,211 224,302 9,652,142 3,347,635 9,747,353 3,571,937

NAV, end of period $ 492,068 $ 242,456 $ 119,753,560 $ 101,628,932 $ 120,245,628 $ 101,871,388

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 41,309 1,812 10,778,887 9,298,859 Number of units issued 10,324 21,339 775,539 1,671,635 Number of units reinvested 1,248 411 410,495 299,122 52,881 23,562 11,964,921 11,269,616 Number of units redeemed (2,107) - (346,985) (1,972,028)

Units issued and outstanding, end of period 50,774 23,562 11,617,936 9,297,588

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian High Yield Bond Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 5,184,396 $ 5,966,291 Guardian High Yield Bond Fund (the “Fund”) was formed on May 1, 1999. The primary objective of the Adjustments for: Fund is to generate a high level of interest income by investing predominantly in high-yield bonds and Foreign exchange (gain) loss on cash (683,822) (61,373) debentures issued primarily by Canadian corporations and other Canadian entities, as well as other Net realized (gains) losses on sale of investments 415,150 (1,445,236) securities, such as high-yield bonds, offered in the non- Canadian marketplace. Pursuant to an Change in unrealized (appreciation) amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Series A units depreciation in value of investments (1,758,833) (792,319) were renamed as Series W units. The initial subscription for series W units was made on September 30, Change in unrealized (appreciation) 2013. The address of the Fund and the Manager's principal business office is Suite 3100, 199 Bay Street, depreciation in foreign currency contracts (307,446) - Toronto, Ontario, M5L 1E8. Purchases of investments (33,132,389) (37,814,745) Proceeds from sale of investments 11,850,666 35,478,267 Note 2 (k): Foreign currency forward contracts (Increase) decrease in short-term securities, net 14,079,229 1,437,427 The following table is a summary of the currency derivatives of the Fund: (Increase) decrease in interest and dividends receivable (242,225) 5,006 CAD equivalent Unrealized gain As at June 30, 2015 USD Maturity Date Increase (decrease) in accrued expenses due to Manager 1,172 1,176 of contracts (loss) Net cash from (used in) operating activities (4,594,102) 2,774,494 Amounts sold $ 5,580,000 $ 6,876,401 15-Jul-15 $ 91,415 Amounts purchased (5,580,000) (6,968,918) 15-Jul-15 1,060 Cash flows from (used in) financing activities Amounts sold 15,560,000 19,166,964 16-Jul-15 263,276 Distributions paid, net of reinvested distributions (3,576) (11,841) Amounts purchased (15,560,000) (19,457,002) 16-Jul-15 26,626 Proceeds from issuance of units 8,236,877 18,721,732 Net gain (loss) $ 382,377 Redemption of units (3,601,011) (21,291,463) Net cash from (used in) financing activities 4,632,290 (2,581,572) CAD equivalent Unrealized gain As at December 31, 2014 USD Maturity Date of contracts (loss) Foreign exchange Amounts sold $ 5,000,000 $ 5,665,135 19-Feb-15 $ 161,504 Net effect of foreign exchange on cash balances - (411) Amounts purchased (5,000,000) (5,635,775) 19-Feb-15 (132,196) Amounts sold 8,140,000 9,221,277 20-Feb-15 262,592 Net increase (decrease) in cash 38,188 192,511 Amounts purchased (8,140,000) (9,175,571) 20-Feb-15 (216,969) Cash, net (bank overdraft), beginning of period 349,456 119,330 Net gain (loss) $ 74,931 Cash, net (bank overdraft), end of period $ 387,644 $ 311,841 The credit rating of the counterparty to the agreements was AA throughout all periods. Cash activity included in operating activities: Interest received $ 3,586,800 $ 3,414,000 Interest paid (810) (55) Dividends received, net of withholding taxes - 38

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Financial assets and liabilities Amounts offset Amounts not offset Net Gross assets/ Gross assets/ Net amounts Financial Cash collateral liabilites liabilites offset presented instruments received

As at June 30, 2015 Derivative assets $ 382,377 $ - $ 382,377 $ - $ - $ 382,377

Derivative liabilities ------

As at December 31, 2014 Derivative assets $ 424,096 $ (349,165) $ 74,931 $ - $ - $ 74,931

Derivative liabilities (349,165) 349,165 - - - -

Note 3: Increase (decrease) in NAV from operations per unit per series Note 5: Income taxes The weighted average number of units outstanding during the period used to calculate the The Fund has the following tax losses available to be carried forward and applied increase (decrease) in NAV from operations per unit per series are as follows: against future capital gains or income: For the six months ended June 30 2015 2014 As at December 31, 2014 December 31, 2013 Series I 11,230,211 8,538,881 Capital losses $ - $ - Series W 44,583 6,385 Non-capital losses - -

Note 4: Operating expenses The losses expire on the following dates: The Manager currently charges to the Fund management fees and administration fees, and Amount expiring Date of expiry the annual rates of these fees are as follows: Non-capital losses $ - - Annual management fee rate 2015 2014 Series I 0.00% 0.00% Series W 1.30% 1.30%

Annual administration fee rate 2015 2014 Series I 0.18% 0.18% Series W 0.18% 0.18%

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Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 69,300,702 $ 382,377 $ 69,683,079 58.0% Australia - - GBP - - - - Brazil - - Euro - - - - Canada 53.2% 57.1% Other currencies - - - - China - - Net currency exposure $ 69,300,702 $ 382,377 $ 69,683,079 58.0% France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ 51,064,815 $ 74,931 $ 51,139,746 46.3% Japan - - GBP - - - - Luxembourg - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ 51,064,815 $ 74,931 $ 51,139,746 46.3% Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, this would Taiwan - - have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America 41.9% 25.3% Currency exposure $ 3,484,000 $ 2,557,000 Other countries - - % of NAV 2.9% 2.3% Short-term securities 2.7% 15.7% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 2.2% 1.9% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The table below summarizes the Fund's exposure to interest rate risk. The term to maturity of the Fund's interest rate sensitive Investment sectors, as at June 30, 2015 December 31, 2014 investments are as follows: Canadian bonds 53.0% 57.1% As at June 30, 2015 December 31, 2014 United States bonds 34.8% 24.2% Term to maturity: Common stocks 0.3% 0.1% Less than one month $ 1,107,406 $ 6,260,109 Exchange traded funds 7.0% 1.0% One to three months 1,763,165 11,798,224 Short-term securities 2.7% 15.7% Three months to one year 3,704,031 1,420,965 Other net assets (liabilities) 2.2% 1.9% One to five years 54,059,331 39,514,242 Total 100.0% 100.0% Over five years 48,246,080 48,154,887 Exchange traded funds 8,405,535 - Note 8 (d): Credit risk: Total interest rate sensitive investments $ 117,285,548 $ 107,148,427 The table below summarizes the Fund's credit risk exposure grouped by credit ratings as a percentage of fixed-income securities: Note 8 (a) (ii): Interest sensitivity: Rating, as at June 30, 2015 December 31, 2014 If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held Bonds: constant, the increase or decrease in the Fund’s NAV would amount to approximately: AAA - - As at June 30, 2015 December 31, 2014 AA 0.5% 2.4% Interest sensitivity $ 1,072,000 $ 960,000 A 3.1% 4.6% % of NAV 0.9% 0.9% BBB 16.7% 12.3% BB 24.0% 22.4% Note 8 (a) (iii): Other price risk: B 39.0% 25.5% As at June 30, 2015 and December 31, 2014 other price risk was negligible as the Fund has no significant exposure to investments CCC 3.7% 10.0% subject to market fluctuations. D - - Unrated 10.0% 6.6% Short-term securities: R-1 High 2.8% 11.6% R-1 Mid 0.2% 4.6% Total 100.0% 100.0%

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Guardian High Yield Bond Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement The following is a summary of the fair value hierarchy for the Fund's investments: The remainder of the investments were valued using a valuation technique which compares the As at June 30, 2015 Level 1 Level 2 Level 3 Total expected cash flows from the sale of the assets by the investee against observed sales of simliar Equity investments $ 143,399 $ - $ 164,170 $ 307,569 assets. If the price of these assets were to increase or decrease by 5%, with all other variables Exchange traded funds 8,405,535 - - 8,405,535 unadjusted, the value of the investment would increase by approximately $84,000 (December 31, Fixed-income investments - 97,122,958 8,456,628 105,579,586 2014 - $64,000). Short-term securities 3,300,427 - - 3,300,427 Investment funds - - - - Equity investments Derivatives - assets - 382,377 - 382,377 For the six months ended June 30, 2015 June 30, 2014 Derivatives - liabilities - - - - Balance, beginning of period $ 156,688 $ - Total $ 11,849,361 $ 97,505,335 $ 8,620,798 $ 117,975,494 Purchases - - Percentage of total investments 10.0% 82.7% 7.3% 100.0% Sales - - Net transfers in/out - - As at December 31, 2014 Level 1 Level 2 Level 3 Total Gains (losses) Equity investments $ - $ - $ 156,688 $ 156,688 Realized - - Exchange traded funds 1,118,003 - - 1,118,003 Unrealized 7,482 - Fixed-income investments - 86,007,202 3,761,569 89,768,771 Balance, end of period $ 164,170 $ - Short-term securities 10,471,890 6,907,766 - 17,379,656 Investment funds - - - - The equity investments classified as level 3 were valued based on quotations provided by dealers Derivatives - assets - 74,931 - 74,931 active in trading these investments. The value of the investment is based on an estimate of the Derivatives - liabilities - - - - enterprise value of the investee company less the value of any debts of that company. The Total $ 11,589,893 $ 92,989,899 $ 3,918,257 $ 108,498,049 enterprise value of these equity investments is an estimate of the economic value of the present Percentage of total investments 10.7% 85.7% 3.6% 100.0% value of the future cashflows of the investee company. The present value will vary based on changes in the future cashflows of the investee company which are dependent on interest rates The summary of significant transfers between levels during the periods are as follows: and several other factors including natural resource prices. For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to 30, 2015 Level 2 Level 1 Level 3 Level 2 Note 10: Securities lending Equity investments $ - $ - $ - $ - The securities lending income, the values of securities on loan, and the value of collateral held for Exchange traded funds - - - - such loans, are as follows: Fixed-income investments - - - - For the six months ended June 30 2015 2014 Short-term securities - - - - Investment funds - - - - Securities lending income $ - $ 333 Derivatives - assets - - - - Derivatives - liabilities - - - - As at June 30, 2015 December 31, 2014 Total $ - $ - $ - $ - Value of securities on loan $ - $ - For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Collateral held for securites on loan - - 30, 2014 Level 2 Level 1 Level 3 Level 2 Equity investments $ - $ - $ - $ - Note 11: Related party unitholders Exchange traded funds - - - - Units of the Fund held by affiliates and officers of the Manager, or other investment funds Fixed-income investments - - 2,690,250 - managed by the Manager are as follows: Short-term securities - - - - As at June 30, 2015 December 31, 2014 Investment funds - - - - Derivatives - assets - - - - Series I - number of units 60,824 22,009 Derivatives - liabilities - - - - Series I - percentage of issued units 0.5% 0.0% Total $ - $ - $ 2,690,250 $ - Series W - number of units 116 112 The following tables are reconciliations of the opening balances to the closing balances for instruments at level 3: Series W - percentage of issued units 0.2% 0.0% Fixed-income investments For the six months ended June 30, 2015 June 30, 2014 Note 12: Investments in non-consolidated structured entities Balance, beginning of period $ 3,761,569 $ 545,632 The Fund has invested in non-consolidated entities ("NCE") and details of these investments are Purchases 2,512,328 3,640,427 as follows: Sales (240,481) - Total net assets of Fair value of Fund's Net transfer in/out 2,690,250 - the NCE investment in NCE Gains (losses) As at June 30, 2015 Realized (10,283) - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 3,300,427 Unrealized (256,755) (421,477) Balance, end of period $ 8,456,628 $ 3,764,582 As at December 31, 2014 Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 10,471,890 The fixed income investments classified as level 3 were valued using unadjusted quotations from dealers active in pricing these securities. The fair value will vary based on changes in the expected future cashflows from the investment and the assumed interest rates which incorporate an assumed credit risk premium, and several other factors If the interest rate assumption (the significant input) was increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held constant, the decrease or increase in the fair value of these fixed income securities would amount to approximately $17,000 (December 31, 2014 - $13,000) The actual trading results may differ and the difference could be material. 85 Guardian International Equity Fund

financial statements | June 30, 2015

Guardian International Equity Fund

EQUITY INVESTMENTS - 96.7% INDUSTRIALS - 10.7% CONSUMER DISCRETIONARY - 12.5% 4,800 Adecco SA $ 474,102 $ 486,688 13,800 Daimler AG $ 1,349,709 $ 1,567,183 14,500 Airbus Group NV * 1,253,947 1,173,893 24,700 Fuji Heavy Industries Ltd. 761,971 1,136,047 200 AP Moeller - Maersk A/S 462,064 438,198 105,400 Nissan Motor Co. Ltd. 1,147,208 1,371,092 22,300 Babcock International Group PLC 479,949 472,875 31,900 Sekisui House Ltd. 487,875 632,707 6,809 Chicago Bridge & Iron Co. NV * 430,979 425,377 135,600 Taylor Wimpey PLC 291,446 494,679 58,800 ITOCHU Corp. 804,517 970,070 22,000 Toyota Motor Corp. 1,648,268 1,841,243 89,800 Marubeni Corp. 694,145 643,450 4,100 Volkswagen AG * 953,650 1,183,707 40,500 Mitsubishi Corp. 905,970 1,112,361 23,800 WPP PLC 710,026 666,368 43,500 Mitsui & Co. Ltd. 640,653 737,848 7,350,153 8,893,026 19,600 SKF AB, B-Shares 617,024 557,665 CONSUMER STAPLES - 11.2% 15,600 Toyota Tsusho Corp. 447,457 522,848 11,300 British American Tobacco PLC 691,673 757,682 7,210,807 7,541,273 19,600 Imperial Tobacco Group PLC 1,003,717 1,180,286 INFORMATION TECHNOLOGY - 5.8% 33,856 Koninklijke Ahold NV 718,321 791,193 5,200 Cap Gemini SA * 370,936 574,113 25,900 Nestle SA 2,353,002 2,335,453 16,800 FUJIFILM Holdings Corp. 475,348 749,642 20,400 Svenska Cellulosa AB SCA, B-Shares 548,477 647,033 20,600 Ibiden Co. Ltd. 476,577 435,064 26,400 Unilever PLC 1,396,458 1,415,091 29,800 Konica Minolta Inc. 473,967 434,474 21,300 Wesfarmers Ltd. * 903,920 797,723 115,100 NEC Corp. 393,798 435,677 7,615,568 7,924,461 17,100 SAP SE, ADR 1,577,360 1,489,046 ENERGY - 6.6% 3,767,986 4,118,016 135,800 BP PLC 1,193,907 1,120,268 MATERIALS - 5.3% 15,000 Neste Oil OYJ 331,617 476,985 51,000 Asahi Kasei Corp. 445,848 523,200 12,600 OMV AG 469,224 432,567 17,800 Boliden AB 337,885 404,679 24,300 Repsol SA 596,997 532,383 204,400 Kobe Steel Ltd. 312,058 429,600 27,200 Royal Dutch Shell PLC, B-Shares 1,093,954 965,039 28,600 Kuraray Co. Ltd. * 477,127 436,821 19,471 Transocean Ltd. * 390,866 391,856 45,100 Rexam PLC 481,930 488,803 22,100 Woodside Petroleum Ltd. * 829,003 725,894 39,300 Stora Enso OYJ * 490,945 505,402 4,905,568 4,644,992 7,800 Umicore SA 478,965 461,453 FINANCIALS - 23.8% 7,600 Yara International ASA 440,863 492,533 44,400 3i Group PLC 335,951 450,268 3,465,621 3,742,491 11,900 Ageas SA 561,838 571,999 TELECOMMUNICATION SERVICES - 5.6% 7,800 Allianz SE * 1,457,246 1,515,753 75,300 BT Group PLC 650,622 665,608 45,200 AXA SA * 1,189,581 1,422,855 12,800 Elisa OYJ 475,041 506,203 92,000 Barclays PLC 471,090 470,558 50,800 KDDI Corp. 1,260,390 1,531,052 200 Cheung Kong Property Holdings Ltd. 1,407 2,071 601,000 PCCW Ltd. 487,704 448,109 200 CK Hutchinson Holdings Ltd. 2,371 3,668 31,500 Telenor ASA 884,251 858,756 22,500 CNP Assurances 439,144 468,848 3,758,008 4,009,728 35,600 Credit Agricole SA * 636,998 660,607 UTILITIES - 2.9% 22,100 Danske Bank A/S 796,045 810,999 21,600 Electricite de France SA * 699,425 600,926 160,900 Federation Centres 479,590 450,830 79,800 Enel SpA 462,452 451,122 28,100 Hong Kong Exchanges and Clearing Ltd. 1,391,208 1,238,084 21,300 SSE PLC 682,194 642,375 57,800 ING Groep NV 1,174,690 1,190,750 26,200 United Utilities Group PLC 373,262 458,864 177,400 Intesa Sanpaolo SpA 728,915 802,494 2,217,333 2,153,287 92,600 Legal & General Group PLC 455,060 452,537 Total equity investments 64,910,647 68,740,767 35,200 Lend Lease Group 535,588 507,663 Transaction costs (133,321) - 60,400 Mitsubishi UFJ Financial Group Inc. 386,162 542,171 Total investments - 96.7% 64,777,326 68,740,767 23,300 MS&AD Insurance Group Holdings Inc. 894,752 906,439 439,000 New World Development Co. Ltd. 756,708 716,854 SHORT-TERM SECURITIES - 2.8% 31,200 ORIX Corp. 614,862 579,669 76,499 Guardian Canadian Short-Term Investment 194,000 Shinsei Bank Ltd. 476,755 488,894 Fund, Series I 764,987 764,987 16,000 Societe Generale SA * 967,855 931,881 1,000,000 Province of Ontario 2,100 Swiss Life Holding AG 636,980 600,625 0.09%, July 09, 2015 1,221,426 1,248,394 10,600 Swiss Re AG 929,399 1,171,768 Total short-term securities 1,986,413 2,013,381 16,320,195 16,958,285 HEALTH CARE - 12.3% Other net assets - 0.5% 336,608 9,400 Bayer AG 1,705,190 1,641,656 Net assets attributable to unitholders- 100.0% $ 71,090,756 31,100 Daiichi Sankyo Co. Ltd. 586,269 718,377 5,800 Essilor International SA * 748,021 863,275 16,297 Novartis AG 1,913,494 2,006,183 25,500 Novo Nordisk A/S 1,512,470 1,733,643 14,600 Sanofi SA * 1,833,964 1,792,074 8,299,408 8,755,208

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements. 86 Guardian International Equity Fund

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Guardian International Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 1,838,946 $ 1,686,515 Investments $ 68,740,767 $ 59,741,632 Interest for distribution purposes 1,257 10,490 Cash, net 85,141 156,988 Net realized gains (losses) on sale of investments 6,205,134 5,117,303 Due from brokers - - Change in unrealized appreciation Short-term securities 2,013,381 489,504 (depreciation) in value of investments 1,214,631 (2,873,920) Subscriptions receivable 31,392 - Net gains (losses) on investments 9,259,968 3,940,388 Interest and dividends receivable 235,978 125,352 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 71,106,659 60,513,476 Net gains (losses) on derivatives - - Securities lending income (Note 10) 25,800 26,399 Liabilities Foreign exchange gains (losses) on cash 67,521 (5,880) Current liabilities Total income (loss) 9,353,289 3,960,907 Bank overdraft - - Due to brokers - 80,000 Operating expenses (Note 4) Redemptions payable - - Administration fee 83,262 70,829 Distributions payable - - Management fee 333 11 Accrued expenses due to Manager 15,903 14,090 Independent review committee costs 809 823 Unrealized depreciation on - - Interest charges 937 - foreign currency contracts - - Transaction costs 160,315 219,300 15,903 94,090 Foreign withholding taxes 317,801 293,216 Total operating expenses 563,457 584,179 Net assets attributable to unitholders ("NAV") $ 71,090,756 $ 60,419,386 Increase (decrease) in NAV from operations $ 8,789,832 $ 3,376,728

NAV per series Increase (decrease) in NAV from operations per series Series W $ 57,257 $ 30,618 Series W $ 3,683 $ 56 Series I 71,033,499 60,388,768 Series I 8,786,149 3,376,672

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 11.33 $ 9.97 Series W $ 1.04 $ 0.54 Series I 8.44 7.36 Series I 1.06 0.47

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

87 Guardian International Equity Fund

financial statements | June 30, 2015

Guardian International Equity Fund

NAV, beginning of period $ 30,618 $ 1,104 $ 60,388,768 $ 55,860,596 $ 60,419,386 $ 55,861,700

Increase (decrease) in NAV from operations 3,683 56 8,786,149 3,376,672 8,789,832 3,376,728

Distributions to unitholders from: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units 22,956 - 5,662,925 4,915,929 5,685,881 4,915,929 Reinvested distributions ------Redemption of units - - (3,804,343) (3,965,283) (3,804,343) (3,965,283) 22,956 - 1,858,582 950,646 1,881,538 950,646

Net increase (decrease) in NAV 26,639 56 10,644,731 4,327,318 10,671,370 4,327,374

NAV, end of period $ 57,257 $ 1,160 $ 71,033,499 $ 60,187,914 $ 71,090,756 $ 60,189,074

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series W Series W Units issued and outstanding, beginning of period 3,070 104 8,204,101 7,253,977 Number of units issued 1,983 - 673,555 608,885 Number of units reinvested - - - - 5,053 104 8,877,656 7,862,862 Number of units redeemed - - (458,905) (492,561)

Units issued and outstanding, end of period 5,053 104 8,418,751 7,370,301

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

88 Guardian International Equity Fund

financial statements | June 30, 2015

Guardian International Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 8,789,832 $ 3,376,728 Guardian International Equity Fund (the “Fund”) was formed on January 3, 1997. The primary objective of Adjustments for: the Fund is the achievement of long-term growth of capital, primarily through investments in equity and Foreign exchange (gain) loss on cash (67,521) 5,880 equity-related securities of issuers outside North America. Pursuant to an amendment to the Fund’s Net realized (gains) losses on sale of investments (6,205,134) (5,117,303) Declaration of Trust, effective September 16, 2013, the existing Series A units were renamed as Series Change in unrealized (appreciation) W units. The initial subscription for Series W units was made on September 30, 2013. The address of depreciation in value of investments (1,214,631) 2,873,920 the Fund and the Manager's principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, Change in unrealized (appreciation) M5L 1E8. depreciation in foreign currency contracts - - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (50,929,980) (56,225,119) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments 49,303,308 54,717,654 (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in short-term securities, net (1,523,877) (498,447) For the six months ended June 30 2015 2014 (Increase) decrease in interest and dividends receivable (110,626) (79,473) Series I 8,258,029 7,252,568 Increase (decrease) in accrued expenses due to Manager 1,813 1,809 Series W 3,537 104 Net cash from (used in) operating activities (1,956,816) (944,351) Note 4: Operating expenses Cash flows from (used in) financing activities The Manager currently charges to the Fund management fees and administration fees, and the annual Distributions paid, net of reinvested distributions - - rates of these fees are as follows: Proceeds from issuance of units 5,654,489 4,903,220 Annual management fee rate 2015 2014 Redemption of units (3,804,343) (3,965,283) Series I 0.00% 0.00% Net cash from (used in) financing activities 1,850,146 937,937 Series W 1.50% 1.50%

Foreign exchange Annual administration fee rate 2015 2014 Net effect of foreign exchange on cash balances 34,823 447 Series I 0.22% 0.22% Series W 0.22% 0.22% Net increase (decrease) in cash (71,847) (5,967) Cash, net (bank overdraft), beginning of period 156,988 20,149 Note 5: Income taxes Cash, net (bank overdraft), end of period $ 85,141 $ 14,182 The Fund has the following tax losses available to be carried forward and applied against future capital gains or income: Cash activity included in operating activities: As at December 31, 2014 December 31, 2013 Interest received $ 1,257 $ 10,490 Capital losses $ - $ - Interest paid (937) - Non-capital losses - - Dividends received, net of withholding taxes 1,410,519 1,313,826 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

89 Guardian International Equity Fund

financial statements | June 30, 2015

Guardian International Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 1,290,357 $ - $ 1,290,357 1.8% Australia 3.4% 5.2% GBP 71,639 - 71,639 0.1% Austria 0.6% - Euro (6) - (6) 0.0% Belgium 1.4% 3.5% Other currencies 95,968 - 95,968 0.1% Cayman Islands - - Net currency exposure $ 1,457,958 $ - $ 1,457,958 2.0% Denmark 4.1% 1.1% Finland 2.1% 2.7% Financial Instruments France 10.2% 9.8% As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Germany 10.5% 9.6% USD $ 452,307 $ - $ 452,307 0.7% Hong Kong 3.3% 1.3% GBP 15,554 - 15,554 0.0% Israel - 2.0% Euro 19,169 - 19,169 0.0% Italy 1.7% 0.7% Other currencies 12,628 - 12,628 0.0% Japan 24.4% 22.3% Net currency exposure $ 499,658 $ - $ 499,658 0.7% Jersey 0.9% - Netherlands 5.1% 2.6% If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, New Zealand - 1.4% this would have increased or decreased the Fund's NAV as follows: Norway 1.9% 1.4% As at June 30, 2015 December 31, 2014 Singapore - 3.0% Currency exposure $ 73,000 $ 25,000 South Korea - - % of NAV 0.1% 0.0% Spain 0.7% 0.7% In practice, the actual trading results could differ, and the difference could be material. Sweden 2.3% 4.4% Switzerland 9.8% 9.5% Note 8 (a) (ii): Interest rate risk: United Kingdom 14.3% 17.7% The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be United States of America - - significant to the Fund as the Fund invests predominantly in equity securities. Other countries - - Short-term securities 2.8% 0.8% Note 8 (a) (iii): Other price risk: Other net assets (liabilities) 0.5% 0.3% The table below summarizes the Fund's exposure to other price risk: Total 100.0% 100.0% As at June 30, 2015 December 31, 2014 Other price risk $ 68,740,767 $ 59,741,632 Investment sectors, as at June 30, 2015 December 31, 2014 % of NAV 96.7% 98.9% Consumer discretionary 12.5% 13.3% Consumer staples 11.2% 10.9% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, Energy 6.6% 7.0% this would have increased or decreased the Fund's NAV as follows: Financials 23.8% 26.3% As at June 30, 2015 December 31, 2014 Health care 12.3% 10.3% Change in NAV $ 3,437,000 $ 2,987,000 Industrials 10.7% 12.4% % of NAV 4.8% 4.9% Information technology 5.8% 4.4% In practice, the actual trading results could differ, and the difference could be material. Materials 5.3% 6.0% Royalty and income trust units - - Telecommunication services 5.6% 5.0% Utilities 2.9% 3.3% Short-term securities 2.8% 0.8% Other net assets (liabilities) 0.5% 0.3% Total 100.0% 100.0%

90 Guardian International Equity Fund

financial statements | June 30, 2015

Guardian International Equity Fund

As at December 31, 2014 Level 1 Level 2 Level 3 Total Note 11: Related party unitholders Equity investments $ 59,741,632 $ - $ - $ 59,741,632 Units of the Fund held by affiliates and officers of the Manager, or other investment funds Fixed-income investments - - - - managed by the Manager are as follows: Short-term securities 84,136 405,368 - 489,504 As at June 30, 2015 December 31, 2014 Investment funds - - - - Derivatives - assets - - - - Series I - number of units 1,473 1,168 Derivatives - liabilities - - - - Series I - percentage of issued units 0.0% 0.0% Total $ 59,825,768 $ 405,368 $ - $ 60,231,136 Percentage of total investments 99.3% 0.7% - 100.0% Series W - number of units 115 115 Series W - percentage of issued units 2.4% 4.0% The summary of significant transfers between levels during the periods are as follows: For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Note 12: Investments in non-consolidated structured entities 30, 2015 Level 2 Level 1 Level 3 Level 2 The Fund has invested in non-consolidated entities ("NCE") and details of these investments are Equity investments $ - $ - $ - $ - as follows: Fixed-income investments - - - - Total net assets of Fair value of Fund's Short-term securities - - - - the NCE investment in NCE Investment funds - - - - As at June 30, 2015 Derivatives - assets - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 764,987 Derivatives - liabilities - - - - Total $ - $ - $ - $ - As at December 31, 2014 Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 84,136 For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to 30, 2014 Level 2 Level 1 Level 3 Level 2 Equity investments $ - $ - $ - $ - Fixed-income investments - - - - Short-term securities - - - - Investment funds - - - - Derivatives - assets - - - - Derivatives - liabilities - - - - Total $ - $ - $ - $ -

91 Guardian Managed Income Portfolio

financial statements | June 30, 2015

Guardian Managed Income Portfolio

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015 Number of Shares/ Units/ Average Fair Par Value Security Cost Value

INVESTMENT FUNDS - 100.2% 4,697 Guardian Canadian Bond Fund, Series I $ 53,677 $ 52,605 26 Guardian Canadian Equity Fund, Series I 3,750 3,599 1,417 Guardian Equity Income Fund, Series I 26,477 24,961 298 Guardian Fundamental Global Equity Fund, Series I 3,761 3,803 1,482 Guardian Global Dividend Growth Fund, Series I 26,530 25,783 2,423 Guardian High Yield Bond Fund, Series I 25,127 24,984 Guardian Short Duration Bond Fund, 1,183 Series I 12,079 12,055 Total investment funds 151,401 147,790 Transaction costs - - Total investments - 100.2% 151,401 147,790

Other net liabilities - (0.2%) (322) Net assets attributable to unitholders - 100.0% $ 147,468

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

92 Guardian Managed Income Portfolio

financial statements | June 30, 2015

Guardian Managed Income Portfolio

Financial Statements Statement of Net Assets (Unaudited) Statement of Operations (Unaudited) As at June 30, 2015 For the period April 21, 2015 to June 30, 2015

Assets Income Current assets Dividends $ 628 Investments $ 147,790 Interest for distribution purposes 773 Cash, net - Net realized gains (losses) on sale of investments - Due from brokers - Change in unrealized appreciation Short-term securities - (depreciation) in value of investments (3,611) Subscriptions receivable - Net gains (losses) on investments (2,210) Interest and dividends receivable - Net realized gains (losses) on foreign currency contracts - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - (depreciation) on foreign currency contracts - 147,790 Net gains (losses) on derivatives - Securities lending income - Liabilities Foreign exchange gains (losses) on cash - Current liabilities Total income (loss) (2,210) Bank overdraft - Due to brokers - Operating expenses (Note 4) Redemptions payable - Administration fee 12 Distributions payable - Management fee 310 Accrued expenses due to Manager 322 Independent review committee costs - Unrealized depreciation on Interest charges - foreign currency contracts - Transaction costs - 322 Foreign withholding taxes - Total operating expenses 322 Net assets attributable to unitholders ("NAV") $ 147,468 Increase (decrease) in NAV from operations $ (2,532)

NAV per series Increase (decrease) in NAV from operations per series Series W $ 49,098 Series W $ (902) Series C 49,113 Series C (887) Series I 49,257 Series I (743)

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 9.72 Series W $ (0.18) Series C 9.72 Series C (0.18) Series I 9.85 Series I (0.15)

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

93 Guardian Managed Income Portfolio

financial statements | June 30, 2015

Guardian Managed Income Portfolio

Financial Statements Statement of Changes in Net Assets Attributable to Unitholders (Unaudited) 2015 2015 2015 2015 For the period April 21, 2015 to June 30, 2015 Series W Series C Series I Total

NAV, beginning of period $ - $ - $ - $ -

Increase (decrease) in NAV from operations (902) (887) (743) (2,532)

Distributions to unitholders from: Income (299) (316) - (615) Capital gains - - - - Return of capital (203) (186) - (389) (502) (502) - (1,004)

Redeemable unit transactions: Proceeds from issuance of units 50,000 50,000 50,000 150,000 Reinvested distributions 502 502 - 1,004 Redemption of units - - - - 50,502 50,502 50,000 151,004

Net increase (decrease) in NAV 49,098 49,113 49,257 147,468

NAV, end of period $ 49,098 $ 49,113 $ 49,257 $ 147,468

Change in units (Note 3) 2015 2015 2015 Series W Series C Series I Units issued and outstanding, beginning of period - - - Number of units issued 5,000 5,000 5,000 Number of units reinvested 51 51 - 5,051 5,051 5,000 Number of units redeemed - - -

Units issued and outstanding, end of period 5,051 5,051 5,000

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

94 Guardian Managed Income Portfolio

financial statements | June 30, 2015

Guardian Managed Income Portfolio

Financial Statements Supplementary Schedules to the Notes to the Statement of Cash Flows (Unaudited) April 21, 2015 to Financial Statements (Unaudited) For the period June 30, 2015 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ (2,532) Guardian Managed Income Portfolio (the “Fund”) was formed on April 20, 2015. The primary objective of Adjustments for: the Fund is to provide a conservative balanced portfolio that emphasizes income generation, with some Foreign exchange (gain) loss on cash - level of growth of capital, through diversified investments in equity and fixed-income securities. The Fund Net realized (gains) losses on sale of investments - invests in securities of other investment funds managed by the Manager, and may also invest in other Change in unrealized (appreciation) securities, including exchange traded funds, to achieve its objectives. The address of the Fund and the depreciation in value of investments 3,611 Manager’s principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) depreciation in foreign currency contracts - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (151,401) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments - (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in short-term securities, net - April 21, 2015 to For the period (Increase) decrease in interest and dividends receivable - June 30, 2015 Increase (decrease) in accrued expenses due to Manager 322 Series W 5,022 Net cash from (used in) operating activities (150,000) Series C 5,022 Series I 5,000 Cash flows from (used in) financing activities Distributions paid, net of reinvested distributions - Note 4: Operating expenses Proceeds from issuance of units 150,000 The Manager currently charges to the Fund management fees and administration fees, and the annual Redemption of units - rates of these fees are as follows: Net cash from (used in) financing activities 150,000 Annual management fee rate 2015 Series W 1.50% Foreign exchange Series C 1.35% Net effect of foreign exchange on cash balances - Series I 0.00%

Net increase (decrease) in cash - Annual administration fee rate 2015 Cash, net (bank overdraft), beginning of period - Series W 0.04% Cash, net (bank overdraft), end of period $ - Series C 0.04% Series I 0.04% Cash activity included in operating activities: Interest received $ 773 Note 5: Income taxes Interest paid - The Fund has the following tax losses available to be carried forward and applied against future capital Dividends received, net of withholding taxes 628 gains or income: As at December 31, 2014 Capital losses $ - Non-capital losses -

The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Managed Income Portfolio

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's direct and indirect net exposure to currency risk. This includes both monetary and The tables below summarize the Fund's direct and indirect exposure to non-monetary items: countries and investment sectors, as a percentage of NAV: Financial Instruments Countries, as at June 30, 2015 As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Australia 0.7% USD $ 14,506 $ 79 $ 14,585 9.9% Belgium 0.6% GBP 16 - 16 0.0% Bermuda 3.2% Euro 2 - 2 0.0% Canada 67.3% Other currencies 15 - 15 0.0% Finland 0.2% Net currency exposure $ 14,539 $ 79 $ 14,618 9.9% France 0.4% Germany 1.1% If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Ireland 0.5% this would have increased or decreased the Fund's NAV as follows: Israel 0.2% As at June 30, 2015 Italy 0.2% Currency exposure $ 1,000 Japan 0.6% % of NAV 0.7% Netherlands 0.5% In practice, the actual trading results could differ, and the difference could be material. Spain 0.6% Sweden 0.4% Note 8 (a) (ii): Interest rate risk: Switzerland 1.0% The table below summarizes the Fund's direct and indirect exposure to interest rate risk. The term to maturity of the United Kingdom 2.1% Fund's interest rate sensitive investments are as follows: United States of America 17.3% As at June 30, 2015 Other countries 0.1% Term to maturity: Short-term securities 2.0% Less than one month $ 1,034 Other net assets (liabilities) 1.0% One to three months 1,646 Total 100.0% Three months to one year 1,510 One to five years 35,940 Investment sectors, as at June 30, 2015 Over five years 50,827 Bond funds 60.8% Total interest rate sensitive investments $ 90,957 Canadian equity funds 19.3% Global equity funds 20.1% Note 8 (a) (ii): Interest sensitivity: Other net assets (liabilities) (0.2%) If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables Total 100.0% held constant, the increase or decrease in the Fund’s NAV would amount to approximately: As at June 30, 2015 Note 8 (d): Credit risk: Interest sensitivity $ 1,000 The table below summarizes the Fund's direct and indirect credit risk exposure % of NAV 0.7% grouped by credit ratings as a percentage of fixed-income securities: Rating, as at June 30, 2015 Note 8 (a) (iii): Other price risk: Bonds: The table below summarizes the Fund's direct and indirect exposure to Other Price Risk: AAA 23.1% As at June 30, 2015 AA 31.3% Other price risk $ 56,833 A 16.4% % of NAV 38.5% BBB 6.1% BB 6.2% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held B 10.0% constant, this would have increased or decreased the Fund's NAV as follows: CCC 0.9% As at June 30, 2015 D - Change in NAV $ 3,000 Unrated 2.6% % of NAV 2.0% Short-term securities: In practice, the actual trading results could differ, and the difference could be material. R-1 High 3.1% R-1 Mid 0.3% Total 100.0%

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Guardian Managed Income Portfolio

The summary of significant transfers between levels during the period are as follows: Note 11: Related party unitholders For the period April 21, 2015 to Level 1 to Level 2 to Level 2 to Level 3 to Units of the Fund held by affiliates and officers of the Manager, or other June 30, 2015 Level 2 Level 1 Level 3 Level 2 investment funds managed by the Manager are as follows: Equity investments $ - $ - $ - $ - As at June 30, 2015 Fixed-income investments - - - - Series C - number of units 5,051 Short-term securities - - - - Series C - percentage of issued units 100% Investment funds - - - - Derivatives - assets - - - - Series I - number of units 5,000 Derivatives - liabilities - - - - Series I - percentage of issued units 100% Total $ - $ - $ - $ - Series W - number of units 5,051 Series W - percentage of issued units 100%

Note 12: Investments in non-consolidated structured entities The Fund has invested in non-consolidated entities ("NCE") and details of these investments are as follows: Total net assets of Fair value of Fund's the NCE investment in NCE As at June 30, 2015 Guardian Canadian Bond Fund, Series I $ 131,212,317 $ 52,605 Guardian Canadian Equity Fund, Series I 391,482,384 3,599 Guardian Equity Income Fund, Series I 156,983,926 24,961 Guardian Fundamental Global Equity Fund, Series I 9,370,082 3,803 Guardian Global Dividend Growth Fund, Series I 238,202,755 25,783 Guardian High Yield Bond Fund, Series I 120,245,628 24,984 Guardian Short Duration Bond Fund, Series I 29,464,447 12,055

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Guardian Managed Income & Growth Portfolio

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015 Number of Shares/ Units/ Average Fair Par Value Security Cost Value

INVESTMENT FUNDS - 100.2% 5,932 Guardian Canadian Bond Fund, Series I $ 66,982 $ 66,437 267 Guardian Canadian Equity Fund, Series I 38,000 37,178 4,213 Guardian Equity Income Fund, Series I 76,603 74,229 2,986 Guardian Fundamental Global Equity Fund, Series I 38,102 38,073 4,324 Guardian Global Dividend Growth Fund, Series I 76,731 75,244 6,500 Guardian High Yield Bond Fund, Series I 67,033 67,018 1,872 Guardian Short Duration Bond Fund, Series I 19,111 19,074 Total investment funds 382,562 377,253 Transaction costs - - Total investments - 100.2% 382,562 377,253

Other net liabilities - (0.2%) (594) Net assets attributable to unitholders - 100.2% $ 376,659

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Managed Income & Growth Portfolio

Financial Statements Statement of Net Assets (Unaudited) Statement of Operations (Unaudited) April 21, 2015 to As at June 30, 2015 For the period June 30, 2015

Assets Income Current assets Dividends $ 1,409 Investments $ 377,253 Interest for distribution purposes 885 Cash, net - Net realized gains (losses) on sale of investments - Due from brokers - Change in unrealized appreciation Short-term securities - (depreciation) in value of investments (5,310) Subscriptions receivable 80,000 Net gains (losses) on investments (3,016) Interest and dividends receivable - Net realized gains (losses) on foreign currency contracts - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - (depreciation) on foreign currency contracts - 457,253 Net gains (losses) on derivatives - Securities lending income - Liabilities Foreign exchange gains (losses) on cash - Current liabilities Total income (loss) (3,016) Bank overdraft - Due to brokers 80,268 Operating expenses (Note 4) Redemptions payable - Administration fee 15 Distributions payable - Management fee 310 Accrued expenses due to Manager 326 Independent review committee costs - Unrealized depreciation on Interest charges - foreign currency contracts - Transaction costs - 80,594 Foreign withholding taxes - Total operating expenses 325 Net assets attributable to unitholders ("NAV") $ 376,659 Increase (decrease) in NAV from operations $ (3,341)

NAV per series Increase (decrease) in NAV from operations per series Series W $ 48,974 Series W $ (1,026) Series C 48,990 Series C (1,010) Series I 278,695 Series I (1,305)

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 9.70 Series W $ (0.20) Series C 9.70 Series C (0.20) Series I 9.83 Series I (0.16)

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Managed Income & Growth Portfolio

Financial Statements Statement of Changes in Net Assets Attributable to Unitholders (Unaudited) 2015 2015 2015 2015 For the period April 21, 2015 to June 30, 2015 Series W Series C Series I Total

NAV, beginning of period $ - $ - $ - $ -

Increase (decrease) in NAV from operations (1,026) (1,010) (1,305) (3,341)

Distributions to unitholders from: Income (222) (238) - (460) Capital gains - - - - Return of capital (280) (264) - (544) (502) (502) - (1,004)

Redeemable unit transactions: Proceeds from issuance of units 50,000 50,000 280,000 380,000 Reinvested distributions 502 502 - 1,004 Redemption of units - - - - 50,502 50,502 280,000 381,004

Net increase (decrease) in NAV 48,974 48,990 278,695 376,659

NAV, end of period $ 48,974 $ 48,990 $ 278,695 $ 376,659

Change in units (Note 3) 2015 2015 2015 Series W Series C Series I Units issued and outstanding, beginning of period - - - Number of units issued 5,000 5,000 28,355 Number of units reinvested 51 51 - 5,051 5,051 28,355 Number of units redeemed - - -

Units issued and outstanding, end of period 5,051 5,051 28,355

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Managed Income & Growth Portfolio

Financial Statements Supplementary Schedules to the Notes to the Statement of Cash Flows (Unaudited) April 21, 2015 to Financial Statements (Unaudited) For the period June 30, 2015 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ (3,341) Guardian Managed Income & Growth Portfolio (the “Fund”) was formed on April 20, 2015. The primary Adjustments for: objective of the Fund is toprovide a balanced portfolio that emphasizes growth of capital, with some level Foreign exchange (gain) loss on cash - of income generation, through diversified investments in equity and fixed-income securities. The Fund Net realized (gains) losses on sale of investments - invests in securities of other investment funds managed by the Manager, and may also invest in other Change in unrealized (appreciation) securities, including exchange traded funds, to achieve its objectives. The address of the Fund and the depreciation in value of investments 5,310 Manager’s principal business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) depreciation in foreign currency contracts - Note 3: Increase (decrease) in NAV from operations per unit per series Purchases of investments (302,295) The weighted average number of units outstanding during the period used to calculate the increase Proceeds from sale of investments - (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in short-term securities, net - April 21, 2015 to For the period (Increase) decrease in interest and dividends receivable - June 30, 2015 Increase (decrease) in accrued expenses due to Manager 326 Series W 5,022 Net cash from (used in) operating activities (300,000) Series C 5,022 Series I 8,279 Cash flows from (used in) financing activities Distributions paid, net of reinvested distributions - Note 4: Operating expenses Proceeds from issuance of units 300,000 The Manager currently charges to the Fund management fees and administration fees, and Redemption of units - the annual rates of these fees are as follows: Net cash from (used in) financing activities 300,000 Annual management fee rate 2015 Series W 1.50% Foreign exchange Series C 1.35% Net effect of foreign exchange on cash balances - Series I 0.00%

Net increase (decrease) in cash - Annual administration fee rate 2015 Cash, net (bank overdraft), beginning of period - Series W 0.04% Cash, net (bank overdraft), end of period $ - Series C 0.04% Series I 0.04% Cash activity included in operating activities: Interest received $ 885 Note 5: Income taxes Interest paid - The Fund has the following tax losses available to be carried forward and applied against future Dividends received, net of withholding taxes 1,409 capital gains or income: As at December 31, 2014 Capital losses $ - Non-capital losses -

The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Managed Income & Growth Portfolio

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's direct and indirect net exposure to currency risk. This includes both monetary and The tables below summarize the Fund's direct and indirect exposure to non-monetary items: countries and investment sectors, as a percentage of NAV: Financial Instruments Countries, as at June 30, 2015 As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Australia 0.8% USD $ 38,958 $ 213 $ 39,171 10.4% Belgium 0.7% GBP 47 - 47 0.0% Bermuda 10.6% Euro 7 - 7 0.0% Canada 49.6% Other currencies 55 - 55 0.0% Finland 0.9% Net currency exposure $ 39,067 $ 213 $ 39,280 10.4% France 0.5% Germany 1.3% If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Ireland 0.5% this would have increased or decreased the Fund's NAV as follows: Israel 0.2% As at June 30, 2015 Italy 0.5% Currency exposure $ 2,000 Japan 1.0% % of NAV 0.5% Netherlands 0.6% In practice, the actual trading results could differ, and the difference could be material. Spain 1.0% Sweden 0.7% Note 8 (a) (ii): Interest rate risk: Switzerland 1.2% The table below summarizes the Fund's direct and indirect exposure to interest rate risk. The term to maturity of the Fund's United Kingdom 3.0% interest rate sensitive investments are as follows: United States of America 23.2% As at June 30, 2015 Other countries 0.3% Term to maturity: Short-term securities 2.1% Less than one month $ 2,712 Other net assets (liabilities) 1.3% One to three months 4,318 Total 100.0% Three months to one year 3,633 One to five years 65,676 Investment sectors, as at June 30, 2015 Over five years 80,702 Bond funds 40.5% Total interest rate sensitive investments $ 157,041 Canadian equity funds 29.6% Global equity funds 30.1% Note 8 (a) (ii): Interest sensitivity: Other net assets (liabilities) (0.2%) If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables Total 100.0% held constant, the increase or decrease in the Fund’s NAV would amount to approximately: As at June 30, 2015 Note 8 (d): Credit risk: Interest sensitivity $ 4,000 The table below summarizes the Fund's direct and indirect credit risk exposure % of NAV 1.1% grouped by credit ratings as a percentage of fixed-income securities: Rating, as at June 30, 2015 Note 8 (a) (iii): Other price risk: Bonds: The table below summarizes the Fund's direct and indirect exposure to Other Price Risk: AAA 17.7% As at June 30, 2015 AA 24.1% Other price risk $ 220,212 A 13.7% % of NAV 58.5% BBB 8.3% BB 9.7% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, B 15.7% this would have increased or decreased the Fund's NAV as follows: CCC 1.5% As at June 30, 2015 D - Change in NAV $ 11,000 Unrated 4.0% % of NAV 2.9% Short-term securities: In practice, the actual trading results could differ, and the difference could be material. R-1 High 4.8% R-1 Mid 0.5% Total 100.0%

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Guardian Managed Income & Growth Portfolio

Note 12: Investments in non-consolidated structured entities The Fund has invested in non-consolidated entities ("NCE") and details of these investments are as follows: Total net assets of Fair value of Fund's the NCE investment in NCE As at June 30, 2015 Guardian Canadian Bond Fund, Series I $ 131,212,317 $ 66,437 Guardian Canadian Equity Fund, Series I 391,482,384 37,178 Guardian Equity Income Fund, Series I 156,983,926 74,229 Guardian Fundamental Global Equity Fund, Series I 9,370,082 38,073 Guardian Global Dividend Growth Fund, Series I 238,202,755 75,244 Guardian High Yield Bond Fund, Series I 120,245,628 67,018 Guardian Short Duration Bond Fund, Series I 29,464,447 19,074

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financial statements | June 30, 2015

Guardian Private Wealth Bond Fund

CANADIAN BONDS - 79.3% CORPORATE - Continued CORPORATE - 79.3% 1,250,000 Sun Life Financial Inc. 1,000,000 American Express Canada Credit Corp. 4.57%, August 23, 2021 $ 1,364,875 $ 1,419,379 3.60%, June 3, 2016 $ 1,033,025 $ 1,021,914 1,250,000 TELUS Corp. 1,000,000 Bank of Montreal 5.05%, December 4, 2019 1,359,825 1,413,813 4.61%, September 10, 2025 1,104,900 1,161,568 1,250,000 TELUS Corp. 1,750,000 Bell Canada 3.75%, January 17, 2025 1,273,100 1,286,890 3.35%, March 22, 2023 1,679,600 1,787,662 1,250,000 Thomson Reuters Corp. 1,250,000 BMW Canada Inc. 4.35%, September 30, 2020 1,312,900 1,373,896 2.88%, August 9, 2016 1,273,325 1,272,749 1,000,000 TMX Group Ltd. 1,000,000 Brookfield Asset Management Inc. 3.25%, October 3, 2018 1,038,300 1,057,660 5.04%, March 8, 2024 1,007,060 1,104,113 1,500,000 Toronto-Dominion Bank 1,250,000 Calloway REIT 2.17%, April 2, 2018 1,485,800 1,534,032 4.05%, July 27, 2020 1,278,125 1,338,166 1,000,000 Toronto-Dominion Bank 1,000,000 Canadian Imperial Bank of Commerce 3.23%, July 24, 2024 1,013,500 1,043,529 2.35%, October 18, 2017 994,340 1,024,605 1,500,000 TransCanada PipeLines Ltd. 1,000,000 Canadian Tire Corp. Ltd. 3.65%, November 15, 2021 1,577,075 1,620,394 6.25%, April 13, 2028 1,150,980 1,225,736 Total Canadian Bonds 36,686,123 37,815,825 300,000 Element Financial Corp. 5.13%, June 30, 2019 321,823 384,435 FOREIGN BONDS - 19.4% 200,000 Element Financial Corp. CORPORATE - 19.4% 4.25%, June 30, 2020 213,360 219,450 1,500,000 AT&T Inc. 1,250,000 Emera Inc. 3.83%, November 25, 2020 1,554,000 1,601,076 4.83%, December 2, 2019 1,373,305 1,401,651 1,500,000 Anheuser-Busch InBev Finance Inc. 1,250,000 Enbridge Inc. 3.38%, January 25, 2023 1,482,725 1,553,104 4.77%, September 2, 2019 1,382,530 1,372,989 1,750,000 BHP Billiton Finance Ltd. 1,250,000 Enbridge Inc. 3.23%, May 15, 2023 1,715,625 1,771,848 3.19%, December 5, 2022 1,257,025 1,254,232 1,000,000 BP Capital Markets PLC 750,000 Genworth MI Canada Inc. * 2.74%, February 24, 2017 1,023,200 1,021,207 4.24%, April 1, 2024 787,125 773,794 1,000,000 Heathrow Funding Ltd. 1,250,000 George Weston Ltd. 3.25%, May 21, 2025 1,009,200 1,003,717 4.12%, June 17, 2024 1,283,775 1,315,333 1,250,000 JPMorgan Chase & Co. 1,250,000 Great-West Lifeco Inc. 2.92%, September 19, 2017 1,264,000 1,290,381 4.65%, August 13, 2020 1,368,850 1,414,643 1,000,000 Morgan Stanley * 1,500,000 Inter Pipeline Ltd. 3.13%, August 5, 2021 998,100 1,028,608 3.78%, May 30, 2022 1,544,750 1,584,361 Total foreign bonds 9,046,850 9,269,941 1,000,000 Kellogg Canada Inc. Transaction costs (140) - 2.05%, May 23, 2017 1,001,700 1,010,743 Total investments - 98.7% 45,732,833 47,085,766 1,000,000 Loblaw Cos. Ltd. 4.86%, September 12, 2023 1,004,500 1,123,735 SHORT-TERM SECURITIES - 0.4% 1,250,000 Manitoba Telecom Services Inc. 19,258 Guardian Canadian Short-Term Investment 4.59%, October 1, 2018 1,354,800 1,354,657 Fund, Series I 192,577 192,577 1,250,000 Metro Inc. Total short-term securities 192,577 192,577 3.20%, December 01, 2021 1,324,625 1,298,138 1,250,000 Rogers Communications Inc. Other net assets - 0.9% 406,414 5.34%, March 22, 2021 1,408,945 1,436,408 Net assets attributable to unitholders- 100.0% $ 47,684,757 1,000,000 Royal Bank of Canada 4.93%, July 16, 2025 1,112,280 1,185,150

* Denotes all or part of securities on loan.

104 Guardian Private Wealth Bond Fund

financial statements | June 30, 2015

Guardian Private Wealth Bond Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ - $ - Investments $ 47,085,766 $ 44,306,971 Interest for distribution purposes 827,195 715,019 Cash, net 7,972 82,588 Net realized gains (losses) on sale of investments 123,400 11,699 Due from brokers - - Change in unrealized appreciation Short-term securities 192,577 815,057 (depreciation) in value of investments 359,309 1,320,265 Subscriptions receivable - 29,490 Net gains (losses) on investments 1,309,904 2,046,983 Interest and dividends receivable 406,434 392,977 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 47,692,749 45,627,083 Net gains (losses) on derivatives - - Securities lending income (Note 10) 652 636 Liabilities Foreign exchange gains (losses) on cash - - Current liabilities Total income (loss) 1,310,556 2,047,619 Bank overdraft - - Due to brokers - 80,000 Operating expenses (Note 4) Redemptions payable 3,000 41,738 Administration fee 25,913 21,681 Distributions payable - 248 Management fee 396 365 Accrued expenses due to Manager 4,992 4,945 Independent review committee costs 597 566 Unrealized depreciation on Interest charges 5 3 foreign currency contracts - - Transaction costs - 140 7,992 126,931 Foreign withholding taxes - - Total operating expenses 26,911 22,755 Net assets attributable to unitholders ("NAV") $ 47,684,757 $ 45,500,152 Increase (decrease) in NAV from operations $ 1,283,645 $ 2,024,864

NAV per series Increase (decrease) in NAV from operations per series Series W $ 69,802 $ 69,908 Series W $ 1,613 $ 3,556 Series I 47,614,955 45,430,244 Series I 1,282,032 2,021,308

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.73 $ 10.61 Series W $ 0.25 $ 0.56 Series I 10.48 10.36 Series I 0.29 0.52

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

105 Guardian Private Wealth Bond Fund

financial statements | June 30, 2015

Guardian Private Wealth Bond Fund

NAV, beginning of period $ 69,908 $ 76,795 $ 45,430,244 $ 37,150,225 $ 45,500,152 $ 37,227,020

Increase (decrease) in NAV from operations 1,613 3,556 1,282,032 2,021,308 1,283,645 2,024,864

Distributions to unitholders: Income (807) (658) (800,277) (692,558) (801,084) (693,216) Capital gains ------(807) (658) (800,277) (692,558) (801,084) (693,216)

Redeemable unit transactions: Proceeds from issuance of units - - 4,382,311 4,087,373 4,382,311 4,087,373 Reinvested distributions 807 658 800,277 692,425 801,084 693,083 Redemption of units (1,719) (79,332) (3,479,632) (1,935,197) (3,481,351) (2,014,529) (912) (78,674) 1,702,956 2,844,601 1,702,044 2,765,927

Net increase (decrease) in NAV (106) (75,776) 2,184,711 4,173,351 2,184,605 4,097,575

NAV, end of period $ 69,802 $ 1,019 $ 47,614,955 $ 41,323,576 $ 47,684,757 $ 41,324,595

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 6,589 7,712 4,385,667 3,730,450 Number of units issued - - 411,751 399,286 Number of units reinvested 74 65 75,806 67,507 6,663 7,777 4,873,224 4,197,243 Number of units redeemed (159) (7,680) (329,767) (188,670)

Units issued and outstanding, end of period 6,504 97 4,543,457 4,008,573

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

106 Guardian Private Wealth Bond Fund

financial statements | June 30, 2015

Guardian Private Wealth Bond Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015 Note 1: Formation of the Fund: Cash flows from operating activities Guardian Private Wealth Bond Fund (the “Fund”) was formed on March 29, 2012. The primary objective Increase (decrease) in NAV from operations $ 1,283,645 $ 2,024,864 of the Fund is the generation of an above-average income stream, through the investment in investment Adjustments for: grade corporate bonds, debentures, notes or other evidences of indebtedness. Pursuant to an Foreign exchange (gain) loss on cash - - amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Series A units Net realized (gains) losses on sale of investments (123,400) (11,699) were renamed as Series W units. The address of the Fund and the Manager's principal business office is Change in unrealized (appreciation) Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in value of investments (359,309) (1,320,265) Note 3: Increase (decrease) in NAV per unit per series Change in unrealized (appreciation) The weighted average number of units outstanding during the period used to calculate the increase depreciation in foreign currency contracts (decrease) in NAV from operations per unit per series are as follows: Purchases of investments (4,737,084) (10,777,975) For the six months ended June 30 2015 2014 Proceeds from sale of investments 2,360,750 7,936,700 Series I 4,462,709 3,864,705 (Increase) decrease in short-term securities, net 622,480 186,378 Series W 6,522 6,344 (Increase) decrease in interest and dividends receivable (13,457) (43,994) Increase (decrease) in accrued expenses due to Manager 47 678 Note 4: Operating expenses Net cash from (used in) operating activities (966,328) (2,005,313) The Manager currently charges to the Fund management fees and administration fees, and the annual rates of these fees are as follows: Cash flows from (used in) financing activities Annual management fee rate 2015 2014 Distributions paid, net of reinvested distributions - (133) Series I 0.00% 0.00% Proceeds from issuance of units 4,411,801 3,876,020 Series W 1.00% 1.00% Redemption of units (3,520,089) (1,961,710) Net cash from (used in) financing activities 891,712 1,914,177 Annual administration fee rate 2015 2014 Series I 0.10% 0.10% Foreign exchange Series W 0.10% 0.10% Net effect of foreign exchange on cash balances - - Note 5: Income taxes Net increase (decrease) in cash (74,616) (91,136) The Fund has the following tax losses available to be carried forward and applied against future capital Cash, net (bank overdraft), beginning of period 82,588 4,469 gains or income: Cash, net (bank overdraft), end of period $ 7,972 $ (86,667) As at December 31, 2014 December 31, 2013 Capital losses $ 190,078 $ 190,078 Cash activity included in operating activities: Non-capital losses - - Interest received $ 813,738 $ 671,025 Interest paid (5) (3) The losses expire on the following dates: Dividends received, net of withholding taxes - - Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

107 Guardian Private Wealth Bond Fund

financial statements | June 30, 2015

Guardian Private Wealth Bond Fund

Note 8 (a) (ii): Interest sensitivity: Note 8 (d): Credit risk: If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held The table below summarizes the Fund's credit risk exposure grouped by credit constant, the increase or decrease in the Fund’s NAV would amount to approximately: ratings as a percentage of fixed-income securities: As at June 30, 2015 December 31, 2014 Rating, as at June 30, 2015 December 31, 2014 Interest sensitivity $ 643,000 $ 613,000 Bonds: % of NAV 1.3% 1.3% AAA - - AA 8.0% 7.7% Note 8 (a) (iii): Other price risk: A 45.2% 50.6% The table below summarizes the Fund's exposure to other price risk: BBB 45.1% 39.2% As at June 30, 2015 December 31, 2014 BB - - Other price risk $ - $ - B - - % of NAV - - CCC - - D - - If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, Unrated 1.3% 0.7% this would have increased or decreased the Fund's NAV as follows: Short-term securities: As at June 30, 2015 December 31, 2014 R-1 High 0.4% 1.7% Change in NAV $ - $ - R-1 Mid 0.0% 0.1% % of NAV - - Total 100.0% 100.0% In practice, the actual trading results could differ, and the difference could be material.

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financial statements | June 30, 2015

Guardian Private Wealth Bond Fund

The summary of significant transfers between levels during the periods are as follows: Note 12: Investments in non-consolidated structured entities For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to The Fund has invested in non-consolidated entities ("NCE") and details of these investments are 30, 2015 Level 2 Level 1 Level 3 Level 2 as follows: Equity investments $ - $ - $ - $ - Total net assets of Fair value of Fund's Fixed-income investments - - - - the NCE investment in NCE Short-term securities - - - - As at June 30, 2015 Investment funds - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 192,577 Derivatives - assets - - - - As at December 31, 2014 Derivatives - liabilities - - - - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 815,057 Total $ - $ - $ - $ -

109 Guardian Private Wealth Equity Fund

financial statements | June 30, 2015

Guardian Private Wealth Equity Fund

Schedule of Investment Portfolio (Unaudited) As at June 30, 2015

Number of Number of Shares/ Units/ Average Fair Shares/ Units/ Average Fair Par Value Security Cost Value Par Value Security Cost Value

EQUITY INVESTMENTS - 89.7% INDUSTRIALS - 8.2% CONSUMER DISCRETIONARY - 5.2% 10,000 ABB Ltd., ADR * $ 248,515 $ 260,677 10,000 Cineplex Inc. $ 368,564 $ 470,200 1,500 Canadian National Railway Co. 339,409 648,540 1,900 McDonald's Corp. 203,709 225,512 9,000 Emerson Electric Co. 321,125 316,599 2,500 The Home Depot Inc. 135,794 346,852 4,575 Siemens AG 231,777 285,200 9,500 Thomson Reuters Corp. 358,698 451,820 2,250 The Boeing Co. 207,280 259,779 1,066,765 1,494,384 18,000 Toromont Industries Ltd. 394,486 562,320 CONSUMER STAPLES - 8.3% 1,742,592 2,333,115 2,500 British American Tobacco PLC 327,734 337,863 INFORMATION TECHNOLOGY - 6.2% 18,000 Metro Inc. 276,167 603,360 2,800 Apple Inc. 123,561 438,445 3,500 Nestle SA, ADR 238,489 315,310 12,000 Corning Inc. 271,761 295,584 3,000 PepsiCo. Inc. 295,296 349,592 6,000 Microsoft Corp. 309,360 330,716 13,500 Saputo Inc. 306,379 407,835 4,000 QUALCOMM Inc. 327,453 312,763 7,000 Unilever PLC, ADR * 343,215 375,435 2,500 SAP SE, ADR * 151,322 219,197 1,787,280 2,389,395 7,500 Taiwan Semiconductor ENERGY - 11.3% Manufacturing Co. Ltd., ADR 110,604 212,643 4,000 BP PLC, ADR 196,479 199,553 1,294,061 1,809,348 11,750 Canadian Natural Resources Ltd. 419,752 398,325 MATERIALS - 7.6% 2,000 Chevron Corp. 269,008 240,877 3,450 Agrium Inc. 256,382 456,677 4,000 Conoco Phillips 320,818 306,671 3,000 BASF SE, ADR 287,735 332,064 12,000 Enbridge Inc. 389,115 700,920 6,000 BHP Billiton Ltd., ADR * 368,991 304,948 3,500 Halliburton Co. 194,023 188,198 3,250 EI du Pont de Nemours & Co. 181,700 259,476 19,000 Mullen Group Ltd. 417,187 387,790 3,000 LyondellBasell Industries NV, Class A 291,904 387,720 3,500 Royal Dutch Shell PLC, ADR 299,085 249,110 11,500 Potash Corp. of Saskatchewan Inc. 441,986 444,820 11,500 Suncor Energy Inc. 438,032 395,600 1,828,698 2,185,705 3,000 Total SA, ADR 150,548 184,160 TELECOMMUNICATION SERVICES - 6.4% 3,094,047 3,251,204 7,300 AT&T Inc. * 264,284 323,719 FINANCIALS - 25.8% 7,000 BCE Inc. 277,363 371,420 38,736 Banco Santander SA 361,396 339,005 3,750 BT Group PLC, ADR 157,303 331,886 14,600 Bank of Nova Scotia 865,615 941,262 9,250 Rogers Communications Inc., Class B 374,207 409,775 750 BlackRock Inc. 145,007 323,955 9,250 TELUS Corp. 273,950 398,028 14,250 Brookfield Asset Management Inc. 341,871 621,870 1,347,107 1,834,828 7,000 Canadian Imperial Bank of Commerce 653,770 644,490 UTILITIES - 5.0% 8,305 Deutsche Bank AG 333,002 312,712 3,250 Duke Energy Corp. 219,247 286,539 5,750 HSBC Holdings PLC 271,448 321,674 4,200 Edison International 208,380 291,434 6,300 Intact Financial Corp. 407,949 546,777 14,000 Emera Inc. * 439,371 550,760 4,500 JPMorgan Chase & Co. 203,779 380,679 4,000 National Grid PLC, ADR 255,221 322,451 20,000 Power Corp. of Canada * 588,348 638,800 1,122,219 1,451,184 11,650 Royal Bank of Canada 755,206 889,827 Total equity investments 20,635,607 25,816,038 1,250 The Goldman Sachs Group Inc. 212,718 325,831 Transaction costs (14,111) - 14,000 Toronto-Dominion Bank 571,701 742,560 Total investments - 89.7% 20,621,496 25,816,038 5,500 Wells Fargo & Co. 325,448 386,172 6,037,258 7,415,614 SHORT-TERM SECURITIES - 9.4% 125,000 Government of Canada HEALTH CARE - 5.7% 0.55%, July 6, 2015 124,989 124,989 4,000 Baxter International Inc. 334,657 349,218 257,066 Guardian Canadian Short-Term Investment 6,000 GlaxoSmithKline PLC 281,535 311,989 Fund, Series I 2,570,664 2,570,664 3,000 Johnson & Johnson 350,618 365,023 Total short-term securities 2,695,653 2,695,653 3,950 Sanofi SA, ADR 145,755 244,252 2,500 UnitedHealth Group Inc. 203,015 380,779 Other net assets - 0.9% 251,413 1,315,580 1,651,261 Net assets attributable to unitholders - 100.0% $ 28,763,104

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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financial statements | June 30, 2015

Guardian Private Wealth Equity Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 442,355 $ 294,784 Investments $ 25,816,038 $ 21,978,829 Interest for distribution purposes 11,465 8,482 Cash, net 89,894 - Net realized gains (losses) on sale of investments 301,597 476,323 Due from brokers 20,016 - Change in unrealized appreciation Short-term securities 2,695,653 2,878,925 (depreciation) in value of investments 347,965 458,999 Subscriptions receivable 58,966 8,900 Net gains (losses) on investments 1,103,382 1,238,588 Interest and dividends receivable 102,112 65,624 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 28,782,679 24,932,278 Net gains (losses) on derivatives - - Securities lending income (Note 10) 873 572 Liabilities Foreign exchange gains (losses) on cash 7,425 (1,400) Current liabilities Total income (loss) 1,111,680 1,237,760 Bank overdraft - 774,837 Due to brokers - 165,895 Operating expenses (Note 4) Redemptions payable 11,995 3,571 Administration fee 32,033 23,008 Distributions payable 980 742 Management fee 3,000 140 Accrued expenses due to Manager 6,600 5,597 Independent review committee costs 310 279 Unrealized depreciation on Interest charges 279 13 foreign currency contracts - - Transaction costs 2,873 3,337 19,575 950,642 Foreign withholding taxes 31,785 25,434 Total operating expenses 70,280 52,211 Net assets attributable to unitholders ("NAV") $ 28,763,104 $ 23,981,636 Increase (decrease) in NAV from operations $ 1,041,400 $ 1,185,549

NAV per series Increase (decrease) in NAV from operations per series Series W $ 360,238 $ 334,640 Series W $ 12,030 $ (712) Series I 28,402,866 23,646,996 Series I 1,029,370 1,186,261

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 11.86 $ 11.49 Series W $ 0.41 $ (0.46) Series I 13.55 13.12 Series I 0.52 0.74

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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financial statements | June 30, 2015

Guardian Private Wealth Equity Fund

NAV, beginning of period $ 334,640 $ 1,092 $ 23,646,996 $ 18,431,090 $ 23,981,636 $ 18,432,182

Increase (decrease) in NAV from operations 12,030 (712) 1,029,370 1,186,261 1,041,400 1,185,549

Distributions to unitholders: Income (1,622) - (360,016) - (361,638) - Capital gains ------(1,622) - (360,016) - (361,638) -

Redeemable unit transactions: Proceeds from issuance of units 17,864 155,172 5,226,316 2,897,313 5,244,180 3,052,485 Reinvested distributions 1,622 - 360,016 - 361,638 - Redemption of units (4,296) - (1,499,816) (1,247,690) (1,504,112) (1,247,690) 15,190 155,172 4,086,516 1,649,623 4,101,706 1,804,795

Net increase (decrease) in net assets attributable to unitholders 25,598 154,460 4,755,870 2,835,884 4,781,468 2,990,344

NAV, end of period $ 360,238 $ 155,552 $ 28,402,866 $ 21,266,974 $ 28,763,104 $ 21,422,526

Change in units 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 29,128 102 1,802,787 1,535,946 Number of units issued 1,460 13,744 374,529 233,938 Number of units reinvested 137 - 26,786 (101,257) 30,725 13,846 2,204,102 1,668,627 Number of units redeemed (356) - (107,609) -

Units issued and outstanding, end of period 30,369 13,846 2,096,493 1,668,627

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

112 Guardian Private Wealth Equity Fund

financial statements | June 30, 2015

Guardian Private Wealth Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 1,041,400 $ 1,185,549 Guardian Private Wealth Equity Fund (the “Fund”) was formed on January 1, 2006, and was formerly Adjustments for: known as Guardian Canadian Plus Equity Fund. The primary objective of the Fund is the achievement of Foreign exchange (gain) loss on cash (7,425) 1,400 long-term capital appreciation through security selection in the Canadian and global markets. Pursuant to Net realized (gains) losses on sale of investments (301,597) (476,323) an amendment to the Fund's Declaration of Trust, effective September 16, 2013 the Fund adopted its Change in unrealized (appreciation) current name and the exisiting Series A units were renamed as Series W Units. The initial subscription depreciation in value of investments (347,965) (458,999) for Series W units was made at that time. The address of the Fund and the Manager's principal business Change in unrealized (appreciation) office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in foreign currency contracts - Purchases of investments (4,145,317) (3,677,736) Note 3: Increase (decrease) in NAV from operations per unit per series Proceeds from sale of investments 778,224 1,960,787 The weighted average number of units outstanding during the period used to calculate the increase (Increase) decrease in short-term securities, net 183,272 (557,663) (decrease) in NAV from operations per unit per series are as follows: (Increase) decrease in interest and dividends receivable (36,488) (15,552) For the six months ended June 30 2015 2014 Increase (decrease) in accrued expenses due to Manager 1,003 982 Series I 1,974,418 1,609,824 Increase (decrease) in distributions payable 238 - Series W 29,445 1,545 Net cash from (used in) operating activities (2,834,655) (2,037,555) Note 4: Operating expenses Cash flows from (used in) financing activities The Manager currently charges to the Fund management fees and administration fees, and the annual Distributions paid, net of reinvested distributions - - rates of these fees are as follows: Proceeds from issuance of units 5,194,114 3,041,937 Annual management fee rate 2015 2014 Redemption of units (1,495,688) (1,045,115) Series I 0.00% 0.00% Net cash from (used in) financing activities 3,698,426 1,996,822 Series W 1.50% 1.50%

Foreign exchange Annual administration fee rate 2015 2014 Net effect of foreign exchange on cash balances 960 (30) Series I 0.22% 0.22% Series W 0.22% 0.22% Net increase (decrease) in cash 864,731 (40,763) Cash, net (bank overdraft), beginning of period (774,837) 63,730 Note 5: Income taxes Cash, net (bank overdraft), end of period $ 89,894 $ 22,967 The Fund has the following tax losses available to be carried forward and applied against future capital gains or income: Cash activity included in operating activities: As at December 31, 2014 December 31, 2013 Interest received $ 11,485 $ 8,479 Capital losses $ 606,576 $ 754,152 Interest paid (279) (13) Non-capital losses - - Dividends received, net of withholding taxes 374,062 253,801 The losses expire on the following dates: Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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financial statements | June 30, 2015

Guardian Private Wealth Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ 111,706 $ - $ 111,706 0.4% Australia 1.1% 1.0% GBP - - - - Brazil - - Euro - - - - Canada 44.2% 45.8% Other currencies - - - - China - - Net currency exposure $ 111,706 $ - $ 111,706 0.4% France 1.4% 1.6% Germany 4.1% 4.2% Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ 24,666 $ - $ 24,666 0.1% Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands 1.3% 1.2% Other currencies - - - - South Korea - - Net currency exposure $ 24,666 $ - $ 24,666 0.1% Spain 1.2% 1.1% Switzerland 2.0% 2.0% If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Taiwan 0.7% 0.8% this would have increased or decreased the Fund's NAV as follows: United Kingdom 8.6% 8.7% As at June 30, 2015 December 31, 2014 United States of America 25.1% 25.3% Currency exposure $ 6,000 $ 1,000 Other countries - - % of NAV 0.0% 0.0% Short-term securities 9.4% 12.0% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 0.9% (3.7%) Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. Because of the short-term nature of its Investment sectors, as at June 30, 2015 December 31, 2014 investments, this risk is not considered to be significant to the Fund. Consumer discretionary 5.2% 6.2% Consumer staples 8.3% 8.3% Note 8 (a) (iii): Other price risk: Energy 11.3% 12.3% The table below summarizes the Fund's exposure to other price risk: Financials 25.8% 26.1% As at June 30, 2015 December 31, 2014 Health care 5.7% 5.1% Other price risk $ 25,816,038 $ 21,978,829 Industrials 8.2% 8.7% % of NAV 89.8% 91.6% Information technology 6.2% 6.3% Materials 7.6% 7.4% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, Royalty and income trust units - - this would have increased or decreased the Fund's NAV as follows: Telecommunication services 6.4% 6.0% As at June 30, 2015 December 31, 2014 Utilities 5.0% 5.3% Change in NAV $ 1,291,000 $ 1,099,000 Short-term securities 9.4% 12.0% % of NAV 4.5% 4.6% Other net assets (liabilities) 0.9% (3.7%) In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

Note 8 (d): Credit risk: The Fund is exposed to credit risk through its investments in investment grade short-term securities, and investment in a mutual fund which holds investments in investment-grade short-term securities.

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financial statements | June 30, 2015

Guardian Private Wealth Equity Fund

Note 12: Investments in non-consolidated structured entities The summary of significant transfers between levels during the periods are as follows: The Fund has invested in non-consolidated entities ("NCE"), details of these investments are as For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to follows: 30, 2015 Level 2 Level 1 Level 3 Level 2 Total net assets of Fair value of Fund's Equity investments $ - $ - $ - $ - the NCE investment in NCE Fixed-income investments - - - - As at June 30, 2015 Short-term securities - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 2,570,664 Investment funds - - - - As at December 31, 2014 Derivatives - assets - - - - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 1,934,105 Derivatives - liabilities - - - - Total $ - $ - $ - $ -

115 Guardian Short Duration Bond Fund

financial statements | June 30, 2015

Guardian Short Duration Bond Fund

CANADIAN BONDS - 92.6% CORPORATE - Continued FEDERAL & GUARANTEED - 21.4% 300,000 Kellogg Canada Inc. 1,128,000 Canada Housing Trust No. 1 2.05%, May 23, 2017 $ 299,940 $ 303,223 1.85%, December 15, 2016 $ 1,142,644 $ 1,147,702 1,060,000 National Bank of Canada 1,455,000 Canada Housing Trust No. 1 2.70%, December 15, 2016 1,085,440 1,082,403 1.70%, December 15, 2017 1,469,406 1,488,558 910,000 National Bank of Canada 330,000 Canada Housing Trust No. 1 2.40%, October 28, 2019 910,260 937,867 2.05%, June 15, 2018 333,759 341,630 652,000 National Bank of Canada 1,395,000 Canada Housing Trust No. 1 3.26%, April 11, 2022 662,523 671,815 2.35%, December 15, 2018 1,468,605 1,461,437 745,000 Royal Bank of Canada 1,755,000 Canada Housing Trust No. 1 2.36%, September 21, 2017 765,860 762,344 2.65%, March 15, 2022 1,852,350 1,868,668 730,000 Royal Bank of Canada 6,266,764 6,307,995 2.82%, July 12, 2018 746,440 760,585 CORPORATE - 71.2% 1,256,000 Royal Bank of Canada 250,000 Bank of Montreal 3.18%, November 2, 2020 1,282,646 1,263,536 2.39%, July 12, 2017 253,575 255,848 1,105,000 Sun Life Financial Inc. 1,059,000 Bank of Montreal 5.59%, January 30, 2023 1,222,075 1,215,851 3.21%, September 13, 2018 1,074,653 1,119,525 845,000 Toronto-Dominion Bank 1,000,000 Bank of Montreal 2.17%, April 2, 2018 845,664 864,171 3.98%, July 8, 2021 1,034,850 1,025,446 1,540,000 Toronto-Dominion Bank 700,000 Bank of Nova Scotia 2.45%, April 2, 2019 1,543,706 1,595,737 2.75%, August 13, 2018 713,888 728,557 20,782,232 20,981,304 550,000 Bank of Nova Scotia Total Canadian bonds 27,048,996 27,289,299 2.40%, October 28, 2019 555,698 566,847 Transaction costs - - 1,170,000 Bank of Nova Scotia Total investments - 92.6% 27,048,996 27,289,299 2.13%, June 15, 2020 1,169,672 1,183,307 2,415,000 Caisse Centrale Desjardins SHORT-TERM SECURITIES - 6.8% 1.75%, March 2, 2020 2,396,670 2,406,306 199,237 Guardian Canadian Short-Term Investment 862,000 Canadian Imperial Bank of Commerce Fund, Series I 1,992,367 1,992,367 1.75%, June 1, 2016 854,975 867,596 Total short-term securities 1,992,367 1,992,367 1,870,000 Canadian Imperial Bank of Commerce 2.35%, October 18, 2017 1,925,165 1,916,011 Other net assets - 0.6% 182,781 1,000,000 Fairfax Financial Holdings Ltd. Net assets attributable to unitholders- 100.0% $ 29,464,447 7.50%, August 19, 2019 1,170,520 1,172,783 268,000 Hydro One Inc. 2.78%, October 9, 2018 268,012 281,546

* Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Short Duration Bond Fund

Financial Statements Statements of Net Assets (Unaudited) Statements of Operations (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ - $ - Investments $ 27,289,299 $ 27,164,983 Interest for distribution purposes 375,219 287,743 Cash, net 2,391 8,873 Net realized gains (losses) on sale of investments 161,659 47,851 Due from brokers - - Change in unrealized appreciation Short-term securities 1,992,367 785,838 (depreciation) in value of investments 117,026 39,350 Subscriptions receivable 14,187 - Net gains (losses) on investments 653,904 374,944 Interest and dividends receivable 182,226 121,225 Net realized gains (losses) on foreign currency contracts (15,640) - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 29,480,470 28,080,919 Net gains (losses) on derivatives (15,640) - Securities lending income (Note 10) - - Liabilities Foreign exchange gains (losses) on cash (3,324) - Current liabilities Total income (loss) 634,940 374,944 Bank overdraft - - Due to brokers - - Operating expenses (Note 4) Redemptions payable 14,730 - Administration fee 6,132 4,448 Distributions payable - - Management fee - 2 Accrued expenses due to Manager 1,293 1,260 Independent review committee costs 372 - Unrealized depreciation on Interest charges 9 26 foreign currency contracts - - Transaction costs - - 16,023 1,260 Foreign withholding taxes - - Total operating expenses 6,513 4,476 Net assets attributable to unitholders ("NAV") $ 29,464,447 $ 28,079,659 Increase (decrease) in NAV from operations $ 628,427 $ 370,468

NAV per series Increase (decrease) in NAV from operations per series Series W $ 1,022 $ 1,006 Series W $ 16 $ (4) Series I 29,463,425 28,078,653 Series I 628,411 370,472

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.04 $ 9.94 Series W $ 0.16 $ (0.04) Series I 10.19 10.10 Series I 0.22 0.18

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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Guardian Short Duration Bond Fund

NAV, beginning of period $ 1,006 $ - $ 28,078,653 $ 16,666,059 $ 28,079,659 $ 16,666,059

Increase (decrease) in NAV from operations 16 (4) 628,411 370,472 628,427 370,468

Distributions to unitholders: Income (8) (6) (368,741) (283,605) (368,749) (283,611) Capital gains ------(8) (6) (368,741) (283,605) (368,749) (283,611)

Redeemable unit transactions: Proceeds from issuance of units - 1,000 2,887,399 10,714,031 2,887,399 10,715,031 Reinvested distributions 8 6 368,741 283,605 368,749 283,611 Redemption of units - - (2,131,038) (1,587,890) (2,131,038) (1,587,890) 8 1,006 1,125,102 9,409,746 1,125,110 9,410,752

Net increase (decrease) in net assets attributable to unitholders 16 996 1,384,772 9,496,613 1,384,788 9,497,609

Net assets attributable to unitholders, end of period $ 1,022 $ 996 $ 29,463,425 $ 26,162,672 $ 29,464,447 $ 26,163,668

Change in units (Note 3) 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 102 - 2,781,035 1,660,988 Number of units issued - 100 281,957 1,056,720 Number of units reinvested 0 1 36,185 28,092 102 101 3,099,177 2,745,800 Number of units redeemed - - (208,400) (156,596)

Units issued and outstanding, end of period 102 101 2,890,777 2,589,204

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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financial statements | June 30, 2015

Guardian Short Duration Bond Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (Unaudited) Financial Statements (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 628,427 $ 370,468 Guardian Short Duration Bond Fund (the “Fund”) was formed on August 30, 2013. The primary objectives Adjustments for: of the Fund are the provision of current interest income while at the same time preserving capital and Foreign exchange (gain) loss on cash 3,324 - seeking opportunities for capital appreciation, through investment in bonds, debentures, notes, or other Net realized (gains) losses on sale of investments (161,659) (47,851) evidence of indebtedness. The address of the Fund and the Manager's principal business office is Suite Change in unrealized (appreciation) 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. depreciation in value of investments (117,026) (39,350) Change in unrealized (appreciation) Note 2 (k): Foreign currency forward contracts depreciation in foreign currency contracts - - The following table is a summary of the currency derivatives of the Fund: Purchases of investments (21,680,253) (22,207,890) CAD equivalent Unrealized gain As at June 30, 2015 USD Maturity Date Proceeds from sale of investments 21,831,298 12,505,128 of contracts (loss) (Increase) decrease in short-term securities, net (1,206,529) 337,609 Amounts sold $ - $ - $ - (Increase) decrease in interest and dividends receivable (61,001) (5,968) Amounts purchased - - - Increase (decrease) in accrued expenses due to Manager 33 285 Net gain (loss) $ - Net cash from (used in) operating activities (763,386) (9,087,569) CAD equivalent Unrealized gain As at December 31, 2014 USD Maturity Date Cash flows from (used in) financing activities of contracts (loss) Distributions paid, net of reinvested distributions - - Amounts sold $ - $ - $ - Proceeds from issuance of units 2,873,212 10,697,532 Amounts purchased - - - Redemption of units (2,116,308) (1,573,233) Net gain (loss) $ - Net cash from (used in) financing activities 756,904 9,124,299 The credit rating of the counterparty to the agreements was AA throughout all periods. Foreign exchange Net effect of foreign exchange on cash balances - -

Net increase (decrease) in cash (6,482) 36,730 Cash, net (bank overdraft), beginning of period 8,873 (33,285) Cash, net (bank overdraft), end of period $ 2,391 $ 3,445

Cash activity included in operating activities: Interest received $ 314,218 $ 281,775 Interest paid (9) (26) Dividends received, net of withholding taxes - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

119 Guardian Short Duration Bond Fund

financial statements | June 30, 2015

Guardian Short Duration Bond Fund

As at June 30, 2015 Derivative assets $ - $ - $ - $ - $ - $ -

Derivative liabilities - $ - - - - -

As at December 31, 2014 Derivative assets $ - $ - $ - $ - $ - $ -

Derivative liabilities - $ - - - - -

Note 3: Increase (decrease) in NAV from operations per unit per series Note 5: Income taxes The weighted average number of units outstanding during the period used to calculate the The Fund has the following tax losses available to be carried forward and applied against increase (decrease) in NAV from operations per unit per series are as follows: future capital gains or income: For the six months ended June 30 2015 2014 As at December 31, 2014 December 31, 2013 Series I 2,831,584 2,069,154 Capital losses $ - $ - Series W 101 100 Non-capital losses - -

Annual administration fee rate 2015 2014 Series I 0.04% 0.04% Series W 0.04% 0.04%

120 Guardian Short Duration Bond Fund

financial statements | June 30, 2015

Guardian Short Duration Bond Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 USD $ - $ - $ - - Australia - - GBP - - - - Brazil - - Euro - - - - Canada 92.6% 96.7% Other currencies - - - - China - - Net currency exposure $ - $ - $ - - France - - Germany - - Financial Instruments Hong Kong - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Indonesia - - USD $ - $ - $ - - Ireland - - GBP - - - - Japan - - Euro - - - - Netherlands - - Other currencies - - - - South Korea - - Net currency exposure $ - $ - $ - - Sweden - - Switzerland - - If the foreign currencies increased or decreased by 5% in relation to the Canadian dollar, with all other variables held constant, Taiwan - - this would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America - - Currency exposure $ - $ - Other countries - - % of NAV - - Short-term securities 6.8% 2.8% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 0.6% 0.5% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The table below summarizes the Fund's exposure to interest rate risk. The term to maturity of the Fund's interest rate sensitive Investment sectors, as at June 30, 2015 December 31, 2014 investments are as follows: Canadian bonds As at June 30, 2015 December 31, 2014 Federal and guaranteed 21.4% 33.4% Term to maturity: Corporate 71.2% 63.3% Less than one month $ 668,507 $ 292,041 Foreign bonds - - One to three months 1,064,369 431,873 Short-term securities 6.8% 2.8% Three months to one year 1,127,086 672,040 Other net assets (liabilities) 0.6% 0.5% One to five years 20,376,388 23,398,231 Total 100.0% 100.0% Over five years 6,045,316 3,156,636 Total interest rate sensitive investments $ 29,281,666 $ 27,950,821 Note 8 (d): Credit risk: The table below summarizes the Fund's credit risk exposure grouped by credit Note 8 (a) (ii): Interest sensitivity: ratings as a percentage of fixed-income securities: If interest rates increased or decreased by 0.25%, assuming a parallel shift in the yield curve and with all other variables held Rating, as at June 30, 2015 December 31, 2014 constant, the increase or decrease in the Fund’s NAV would amount to approximately: Bonds: As at June 30, 2015 December 31, 2014 AAA 21.5% 33.5% Interest sensitivity $ 205,000 $ 196,000 AA 25.8% 17.8% % of NAV 0.7% 0.7% A 35.1% 42.4% BBB 10.8% 3.5% Note 8 (a) (iii): Other price risk: BB - - The table below summarizes the Fund's exposure to other price risk: B - - As at June 30, 2015 December 31, 2014 CCC - - Other price risk $ - $ - D - - % of NAV - - Unrated - - Short-term securities: If the prices on stock exchanges for the equity investments held by the Fund increased or decreased by 5%, with all other R-1 High 6.3% 2.6% variables held constant, this would have increased or decreased the Fund's NAV as follows: R-1 Mid 0.5% 0.2% As at June 30, 2015 December 31, 2014 Total 100.0% 100.0% Change in NAV $ - $ - % of NAV - - In practice, the actual trading results could differ, and the difference could be material.

121 Guardian Short Duration Bond Fund

financial statements | June 30, 2015

Guardian Short Duration Bond Fund

Supplementary Schedules to the Notes to the Financial Statements (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 10: Securities lending The summary of the fair value hierarchy for the Fund's investments are as follows: The securities lending income, the values of securities on loan, and the value of collateral held for such loans, are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total For the six months ended June 30 2015 2014 Equity investments $ - $ - $ - $ - Fixed-income investments - 27,289,299 - 27,289,299 Securities lending income $ - $ - Short-term securities 1,992,367 - - 1,992,367 Investment funds - - - - As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ - $ - Total $ 1,992,367 $ 27,289,299 $ - $ 29,281,666 Collateral held for securites on loan - - Percentage of total investments 6.8% 93.2% - 100.0% Note 11: Related party unitholders Units of the Fund held by affiliates and officers of the Manager, or other investment funds As at December 31, 2014 Level 1 Level 2 Level 3 Total managed by the Manager are as follows: Equity investments $ - $ - $ - $ - As at June 30, 2015 December 31, 2014 Fixed-income investments - 27,164,983 - 27,164,983 Short-term securities 785,838 - - 785,838 Series I - number of units - - Investment funds - - - - Series I - percentage of issued units - - Derivatives - assets - - - - Derivatives - liabilities - - - - Series W - number of units 102 101 Total $ 785,838 $ 27,164,983 $ - $ 27,950,821 Series W - percentage of issued units 100.0% 100.0% Percentage of total investments 2.8% 97.2% - 100.0% Note 12: Investments in non-consolidated structured entities The Fund has invested in non-consolidated entities ("NCE") and details of these investments are The summary of significant transfers between levels during the six months are as follows: as follows: For the six months ended June Level 1 to Level 2 to Level 2 to Level 3 to Total net assets of Fair value of Fund's 30, 2015 Level 2 Level 1 Level 3 Level 2 the NCE investment in NCE Equity investments $ - $ - $ - $ - As at June 30, 2015 Fixed-income investments - - - - Guardian Canadian Short-Term Investment Fund $ 306,415,429 $ 1,992,367 Short-term securities - - - - Investment funds - - - - As at December 31, 2014 Derivatives - assets - - - - Guardian Canadian Short-Term Investment Fund $ 253,816,186 $ 785,838 Derivatives - liabilities - - - - Total $ - $ - $ - $ -

122 Guardian U.S. Equity Fund

financial statements | June 30, 2015

Guardian U.S. Equity Fund

Schedule of Investment Portfolio (In United States Dollars) (Unaudited) As at June 30, 2015 Number of Number of Shares/ Units/ Average Fair Shares/ Units/ Average Fair Par Value Security Cost Value Par Value Security Cost Value

EQUITY INVESTMENTS - 98.8% INDUSTRIALS - 10.6% CONSUMER DISCRETIONARY - 14.1% 2,341 Alaska Air Group Inc. $ 97,076 $ 150,831 2,057 AMC Networks Inc., Class A $ 156,996 $ 168,365 1,381 Cummins Inc. * 194,064 181,173 2,601 AutoNation Inc. 160,605 163,811 2,684 Fluor Corp. 157,049 142,279 4,701 Best Buy Co. Inc. * 148,287 153,300 2,501 GATX Corp. 147,436 132,928 8,944 Comcast Corp., Class A 441,625 537,892 1,812 General Dynamics Corp. 253,660 256,742 1,222 Dillard's Inc., Class A 143,753 128,542 2,552 PACCAR Inc. 169,717 162,843 5,959 DR Horton Inc. 161,882 163,038 2,393 Raytheon Co. 255,411 228,962 2,958 Foot Locker Inc. 140,559 198,216 5,438 Southwest Airlines Co. 126,272 179,943 5,787 General Motors Co. 216,534 192,881 2,958 Spirit Aerosystems Holdings Inc. 159,669 163,015 5,451 Lowe's Cos. Inc. 358,087 365,053 3,480 The Boeing Co. 490,054 482,745 3,108 Michael Kors Holdings Ltd. * 242,276 130,816 4,601 Trinity Industries Inc. * 179,722 121,604 5,877 The Goodyear Tire & Rubber Co. 156,608 177,192 2,744 United Continental Holdings Inc. 182,093 145,459 5,862 The Walt Disney Co. 537,752 669,089 1,527 United Rentals Inc. 155,821 133,796 8,117 Twenty-First Century Fox Inc. 279,298 264,168 2,568,044 2,482,320 3,144,262 3,312,363 INFORMATION TECHNOLOGY - 23.2% CONSUMER STAPLES - 8.3% 2,419 Accenture PLC, A-Shares 217,203 234,111 10,390 Altria Group Inc. 537,142 508,175 692 Alliance Data Systems Corp. 208,019 202,022 2,094 Costco Wholesale Corp. 292,561 282,816 8,717 Apple Inc. 673,829 1,093,330 4,877 CVS Health Corp. 301,737 511,500 1,512 Avago Technologies Ltd. 197,091 200,990 2,346 Dr. Pepper Snapple Group Inc. 147,479 171,023 16,041 Cisco Systems Inc. 470,189 440,485 4,440 The Kroger Co. 217,116 321,944 3,311 Cognizant Technology Solutions Corp. 215,190 202,269 3,752 Tyson Foods Inc. 161,526 159,948 7,998 Corning Inc. 164,035 157,801 1,657,561 1,955,406 1,319 DST Systems Inc. 159,031 166,168 ENERGY - 7.7% 2,500 Electronic Arts Inc. 109,073 166,250 4,656 Atwood Oceanics Inc. * 160,071 123,105 1,243 F5 Networks Inc. 157,917 149,595 4,183 Chevron Corp. 440,095 403,534 5,840 Facebook Inc. 405,619 500,868 7,218 Exxon Mobil Corp. 642,347 600,538 769 Google Inc., Class C 414,442 400,272 3,802 FMC Technologies Inc. 156,452 157,745 2,126 IAC/InterActiveCorp. 158,125 169,357 2,122 Helmerich & Payne Inc. * 153,769 149,431 4,736 Intel Corp. 157,397 144,045 1,860 Tesoro Corp. 138,527 157,003 1,978 Lam Research Corp. * 123,075 160,910 3,356 Valero Energy Corp. 201,036 210,086 8,157 Microsoft Corp. 353,461 360,132 1,892,297 1,801,442 4,547 NetApp Inc. 161,038 143,503 FINANCIALS - 12.1% 3,242 QUALCOMM Inc. 230,951 203,046 3,908 Berkshire Hathaway Inc., Class B 572,695 531,918 1,536 Skyworks Solutions Inc. 67,948 159,898 6,550 Citigroup Inc. 332,585 361,822 3,777 Total System Services Inc. 158,405 157,765 902 Everest Re Group Ltd. * 145,704 164,173 4,802,038 5,412,817 7,711 Fifth Third Bancorp 161,709 160,543 MATERIALS - 3.4% 15,243 Huntington Bancshares Inc. 161,541 172,398 5,016 Dow Chemical Co. 247,657 256,669 8,362 JPMorgan Chase & Co. 535,641 566,609 2,060 LyondellBasell Industries NV, Class A 208,556 213,251 10,268 Old Republic International Corp. * 159,521 160,489 3,390 The Mosaic Co. 178,785 158,822 1,886 The Goldman Sachs Group Inc. 387,468 393,778 2,333 Westlake Chemical Corp. 173,240 160,020 5,632 Wells Fargo & Co. 289,237 316,744 808,238 788,762 2,746,101 2,828,474 ROYALTY AND INCOME TRUST UNITS - 1.0% HEALTH CARE - 13.9% 3,484 Health Care REIT Inc. 268,948 228,655 2,364 Aetna Inc. 269,826 301,315 2,314 AmerisourceBergen Corp. 266,240 246,071 TELECOMMUNICATION SERVICES - 3.0% 2,355 Amgen Inc. 385,208 361,541 14,970 Verizon Communications Inc. 725,620 697,752 1,835 Becton Dickinson and Co. 259,492 259,896 628 Biogen Idec Inc. 212,839 253,674 UTILITIES - 1.5% 3,070 Cardinal Health Inc. 264,229 256,806 3,247 Consolidated Edison Inc. * 193,558 187,936 1,744 Cigna Corp. 161,168 282,528 2,488 Entergy Corp. 188,692 175,404 1,270 Edwards Lifesciences Corp. 159,180 180,886 382,250 363,340 5,945 Gilead Sciences Inc. 553,949 696,040 Total equity investments 21,967,890 23,146,858 2,846 Johnson & Johnson 283,307 277,371 Transaction costs (6,981) - 2,198 Quest Diagnostics Inc. * 157,093 159,399 Total investments - 98.8% 21,960,909 23,146,858 2,972,531 3,275,527 SHORT-TERM SECURITIES - 1.1% 175,000 Province of Ontario 0.07%, July 09, 2015 174,996 174,996 90,000 Province of Quebec 1.11%, July 14, 2015 89,994 89,994 Total short-term securities 264,990 264,990

Other net assets - 0.1% 32,683 Net assets attributable to unitholders- 100.0% $ 23,444,531 * Denotes all or part of securities on loan. The accompanying notes and their supplementary schedules are an integral part of these financial statements. 123 Guardian U.S. Equity Fund

financial statements | June 30, 2015

Guardian U.S. Equity Fund

Financial Statements Statements of Net Assets (in United States Dollars) (Unaudited) Statements of Operations (in United States Dollars) (Unaudited) As at June 30, 2015 December 31, 2014 For the six months ended June 30 2015 2014

Assets Income Current assets Dividends $ 214,110 $ 148,518 Investments $ 23,146,858 $ 24,696,367 Interest for distribution purposes 111 164 Cash, net 32,803 - Net realized gains (losses) on sale of investments 1,456,349 659,766 Due from brokers - - Change in unrealized appreciation Short-term securities 264,990 929,866 (depreciation) in value of investments (794,973) 692,898 Subscriptions receivable 8,628 - Net gains (losses) on investments 875,597 1,501,346 Interest and dividends receivable 19,903 25,120 Net realized gains (losses) on foreign currency contracts - - Unrealized appreciation on Change in unrealized appreciation foreign currency contracts - - (depreciation) on foreign currency contracts - - 23,473,182 25,651,353 Net gains (losses) on derivatives - - Securities lending income (Note 10) 355 841 Liabilities Foreign exchange gains (losses) on cash - - Current liabilities Total income (loss) 875,952 1,502,187 Bank overdraft - 89 Due to brokers - - Operating expenses (Note 4) Redemptions payable 26,842 - Administration fee 28,184 19,382 Distributions payable - - Management fee 11 10 Accrued expenses due to Manager 1,809 5,500 Independent review committee costs 285 204 Unrealized depreciation on - - Interest charges 187 13 foreign currency contracts - - Transaction costs 11,997 13,947 28,651 5,589 Foreign withholding taxes 30,825 21,045 Total operating expenses 71,489 54,601 Net assets attributable to unitholders ("NAV") $ 23,444,531 $ 25,645,764 Increase (decrease) in NAV from operations $ 804,463 $ 1,447,586

NAV per series Increase (decrease) in NAV from operations per series Series W $ 1,216 $ 1,188 Series W $ 28 $ 83 Series I 23,443,315 25,644,576 Series I 804,435 1,447,503

NAV per unit per series Increase (decrease) in NAV from operations per unit per series (Note 3) Series W $ 10.00 $ 9.77 Series W $ 0.23 $ 0.72 Series I 11.08 10.73 Series I 0.37 0.92

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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financial statements | June 30, 2015

Guardian U.S. Equity Fund

Financial Statements Statements of Changes in Net Assets Attributable to Unitholders (In United States Dollars) (Unaudited) 2015 2014 2015 2014 2015 2014 For the six months ended June 30 Series W Series W Series I Series I Total Total

NAV, beginning of period $ 1,188 $ 1,084 $ 25,644,576 $ 15,272,668 $ 25,645,764 $ 15,273,752

Increase (decrease) in NAV from operations 28 83 804,435 1,447,503 804,463 1,447,586

Distributions to unitholders: Income ------Capital gains ------

Redeemable unit transactions: Proceeds from issuance of units - - 1,692,966 2,778,955 1,692,966 2,778,955 Reinvested distributions ------Redemption of units - - (4,698,662) (1,347,795) (4,698,662) (1,347,795) - - (3,005,696) 1,431,160 (3,005,696) 1,431,160

Net increase (decrease) in net assets attributable to unitholders 28 83 (2,201,261) 2,878,663 (2,201,233) 2,878,746

Net assets attributable to unitholders, end of period $ 1,216 $ 1,167 $ 23,443,315 $ 18,151,331 $ 23,444,531 $ 18,152,498

Change in units 2015 2014 2015 2014 Series W Series W Series I Series I Units issued and outstanding, beginning of period 121 115 2,390,170 1,487,954 Number of units issued - - 153,305 265,632 Number of units reinvested - - - - 121 115 2,543,475 1,753,586 Number of units redeemed - - (428,025) (127,448)

Units issued and outstanding, end of period 121 115 2,115,450 1,626,138

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

125 Guardian U.S. Equity Fund

financial statements | June 30, 2015

Guardian U.S. Equity Fund

Financial Statements Supplementary Schedules to the Notes to the Statements of Cash Flows (In United States Dollars) (Unaudited) Financial Statements (In United States Dollars) (Unaudited) For the six months ended June 30 2015 2014 June 30, 2015

Cash flows from operating activities Note 1: Formation of the Fund: Increase (decrease) in NAV from operations $ 804,463 $ 1,447,586 Guardian U.S. Equity Fund (the “Fund”) was formed on November 28, 1995. The primary objective of the Adjustments for: Fund is the achievement of long-term growth of capital, primarily through investment in equity and equity- Foreign exchange (gain) loss on cash - - related securities of issuers whose principal business operations are located in the United States. Net realized (gains) losses on sale of investments (1,456,349) (659,766) Pursuant to an amendment to the Fund’s Declaration of Trust, effective September 16, 2013, the existing Change in unrealized (appreciation) Series A units were renamed as Series W units. The address of the Fund and the Manager's principal depreciation in value of investments 794,973 (692,898) business office is Suite 3100, 199 Bay Street, Toronto, Ontario, M5L 1E8. Change in unrealized (appreciation) Note 3: Increase (decrease) in NAV from operations per unit per series depreciation in foreign currency contracts - - The weighted average number of units outstanding during the period used to calculate the increase Purchases of investments (17,111,532) (17,502,673) (decrease) in NAV from operations per unit per series are as follows: Proceeds from sale of investments 19,322,417 15,904,694 For the six months ended June 30 2015 2014 (Increase) decrease in short-term securities, net 664,876 154,996 Series I 2,177,753 1,571,464 (Increase) decrease in interest and dividends receivable 5,217 (69) Series W 121 115 Increase (decrease) in accrued expenses due to Manager (3,691) 734 Increase (decrease) in distributions payable - - Note 4: Operating expenses Net cash from (used in) operating activities 3,020,374 (1,347,396) The Manager currently charges to the Fund management fees and administration fees, and the annual rates of these fees are as follows: Cash flows from (used in) financing activities Annual management fee rate 2015 2014 Distributions paid, net of reinvested distributions - - Series I 0.00% 0.00% Proceeds from issuance of units 1,684,338 2,767,428 Series W 1.50% 1.50% Redemption of units (4,671,820) (1,347,993) Net cash from (used in) financing activities (2,987,482) 1,419,435 Annual administration fee rate 2015 2014 Series I 0.22% 0.22% Foreign exchange Series W 0.22% 0.22% Net effect of foreign exchange on cash balances - - Note 5: Income taxes Net increase (decrease) in cash 32,892 72,039 The Fund has the following tax losses available to be carried forward and applied against future capital Cash, net (bank overdraft), beginning of period (89) 9,311 gains or income: Cash, net (bank overdraft), end of period $ 32,803 $ 81,350 As at December 31, 2014 December 31, 2013 Capital losses $ - $ - Cash activity included in operating activities: Non-capital losses - - Interest received $ 111 $ 162 Interest paid (187) (13) The losses expire on the following dates: Dividends received, net of withholding taxes 188,502 127,406 Amount expiring Date of expiry Non-capital losses $ - -

The accompanying notes and their supplementary schedules are an integral part of these financial statements.

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financial statements | June 30, 2015

Guardian U.S. Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (In United States Dollars) (Unaudited) June 30, 2015 Note 8 (a) (i): Currency risk: Note 8 (b): Concentration risk: The tables below summarize the Fund's net exposure to currency risk. This include both monetary and non-monetary items: The tables below summarize the Fund's exposure to countries and investment Financial Instruments sectors, as a percentage of NAV: As at June 30, 2015 Derivatives Total % of NAV excluding derviatives Countries, as at June 30, 2015 December 31, 2014 CAD $ - $ - $ - - Australia - - GBP - - - - Bermuda 0.7% 1.4% Euro - - - - British Virgin Islands 0.6% 0.9% Other currencies - - - - Canada - - Net currency exposure $ - $ - $ - - China - - France - - Financial Instruments Germany - - As at December 31, 2014 Derivatives Total % of NAV excluding derviatives Hong Kong - - CAD $ - $ - $ - - Ireland 1.0% - GBP - - - - Japan - - Euro - - - - Netherlands 0.9% - Other currencies - - - - Singapore 0.9% - Net currency exposure $ - $ - $ - - Sweden - - Switzerland - 1.6% If the foreign currencies increased or decreased by 5% in relation to the U.S. dollar, with all other variables held constant, this Taiwan - - would have increased or decreased the Fund's NAV as follows: United Kingdom - - As at June 30, 2015 December 31, 2014 United States of America 94.7% 92.4% Currency exposure $ - $ - Other countries - - % of NAV - - Short-term securities 1.1% 3.6% In practice, the actual trading results could differ, and the difference could be material. Other net assets (liabilities) 0.1% 0.1% Total 100.0% 100.0% Note 8 (a) (ii): Interest rate risk: The Fund is exposed to interest rate risk through its investments in short-term securities. This risk is not considered to be Investment sectors, as at June 30, 2015 December 31, 2014 significant to the Fund as the Fund invests predominantly in equity securities. Consumer discretionary 14.1% 14.7% Consumer staples 8.3% 10.9% Note 8 (a) (iii): Other price risk: Energy 7.7% 7.5% The table below summarizes the Fund's exposure to other price risk: Financials 12.1% 11.9% As at June 30, 2015 December 31, 2014 Health care 13.9% 11.8% Other price risk $ 23,146,858 $ 24,696,367 Industrials 10.6% 10.6% % of NAV 98.8% 96.3% Information technology 23.2% 22.1% Materials 3.4% 3.0% If the prices for the equity investments held by the Fund increased or decreased by 5%, with all other variables held constant, this Royalty and income trust units 1.0% - would have increased or decreased the Fund's NAV as follows: Telecommunication services 3.0% 2.0% As at June 30, 2015 December 31, 2014 Utilities 1.5% 1.8% Change in NAV $ 1,157,000 $ 1,235,000 Short-term securities 1.1% 3.6% % of NAV 4.9% 4.8% Other net assets (liabilities) 0.1% 0.1% In practice, the actual trading results could differ, and the difference could be material. Total 100.0% 100.0%

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financial statements | June 30, 2015

Guardian U.S. Equity Fund

Supplementary Schedules to the Notes to the Financial Statements (In United States Dollars) (Unaudited) June 30, 2015 Note 9: Classification of financial instruments for fair value measurement Note 10: Securities lending The following is a summary of the fair value hierarchy for the Fund's investments: The securities lending income, the values of securities on loan, and the value of collateral held for such loans, are as follows: As at June 30, 2015 Level 1 Level 2 Level 3 Total For the six months ended June 30 2015 2014 Equity investments $ 23,146,858 $ - $ - $ 23,146,858 Fixed-income investments - - - - Securities lending income $ 355 $ 841 Short-term securities - 264,990 - 264,990 Investment funds - - - - As at June 30, 2015 December 31, 2014 Derivatives - assets - - - - Derivatives - liabilities - - - - Value of securities on loan $ 1,869,632 $ 1,383,381 Total $ 23,146,858 $ 264,990 $ - $ 23,411,848 Collateral held for securites on loan 1,963,118 1,452,552 Percentage of total investments 98.9% 1.1% - 100.0% Note 11: Related party unitholders As at December 31, 2014 Level 1 Level 2 Level 3 Total Units of the Fund held by affiliates and officers of the Manager, or other investment funds Equity investments $ 24,696,367 $ - $ - $ 24,696,367 managed by the Manager are as follows: Fixed-income investments - - - - As at June 30, 2015 December 31, 2014 Short-term securities - 929,866 - 929,866 Investment funds - - - - Series I - number of units 1,993 5,589 Derivatives - assets - - - - Series I - percentage of issued units 0.1% 0.0% Derivatives - liabilities - - - - Total $ 24,696,367 $ 929,866 $ - $ 25,626,233 Series W - number of units 122 121 Percentage of total investments 96.4% 3.6% - 100.0% Series W - percentage of issued units 100.0% 100.0%

128 Guardian Capital Funds

NOTES TO FINANCIAL STATEMENTS | June 30, 2015 GUARDIAN CAPITAL FUNDS NOTES TO FINANCIAL STATEMENTS

1. The Funds

These notes accompany and form part of the attached financial statements of each of the Guardian Capital Funds (a “Fund”, or the “Funds”). The Funds are governed by a Master Declaration of Trust (the “Declaration of Trust”), and Guardian Capital LP (the “Manager”) is the manager and trustee of each Fund. Information regarding each Fund’s formation, and certain other supplementary information pertaining to each Fund, is contained in the Supplementary Schedules to the Notes to the Financial Statements of each Fund (“the Supplementary Schedules”) which accompany and form part of each Fund’s financial statements.

2. Significant accounting policies:

a) Basis of presentation The financial statements have been prepared in compliance with International Financial Reporting Standards (“IFRS”), which comprises standards and interpretations approved by either the International Accounting Standards Board (“IASB”), the IFRS Interpretations Committee or their predecessors.

The financial statements are presented in Canadian dollars, which is the Funds’ functional currency, with the exception of the Guardian U.S. Equity Fund, in which the financial statements are prepared in U.S. dollars, which is such Fund’s functional currency. The financial statements have been prepared on a going concern basis and on the historical cost basis, except for financial instruments at fair value through the profit or loss, which are measured at fair value.

The financial statements have been authorized for issue by the Manager on August 28, 2015.

b) Critical accounting estimates and judgements:

The preparation of financial statements requires the Manager to use judgment in establishing and applying the Funds’ accounting policies, and to make estimates and assumptions which affect the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. The most significant areas where the Manager has used estimates and applied judgment are as follows:

(i) Estimates Determination of the fair value of investments which do not have quoted market prices:

Information about how the Funds determine fair value is described in Note 2(e). Information about assumptions and estimates associated with the determination of fair value of financial instruments with significant unobservable inputs that have significant risks of actual values being materially different are included in Note 9.

(ii) Judgements Designation of financial instruments:

As the Funds invest in securities, a judgement is made to determine whether certain investments are Held for Trading (“HFT”). If securities are acquired for the purpose of selling in the near term or there is evidence of short term profit taking, they are considered to be HFT.

c) Subsidiaries: Each Fund is considered to be an investment entity and, as such, if it has subsidiaries or joint ventures it will account for them at fair value through the profit or loss (“FVTPL”), with the exception of any subsidiaries or joint ventures which provide services related to such Fund’s investment activities, which are consolidated.

The Funds currently do not have any subsidiaries or joint ventures.

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2. Significant accounting policies (continued)

d) Financial instruments: The Funds classify their financial instruments as follows:

FVTPL:  HFT: derivative financial instruments, securities sold short and securities acquired for the purpose of selling in the near term, or for which there is evidence of short-term profit taking are considered to be HFT.

 Designated upon initial recognition as FVTPL: all other investments in equity and debt securities.

Amortized cost:  Loans and receivables: cash, balances due from brokers and other receivables.

 Other liabilities – balances due to brokers, redeemable units and other payables.

The Funds recognize financial instruments at fair value upon initial recognition, plus transaction costs in the case of financial instruments not measured at FVTPL. Purchases and sales of financial instruments are recognized at their trade date. Under the amortized cost method, financial assets and liabilities reflect the amount required to be received or paid, discounted, when appropriate, at the contract’s effective interest rate. Amortized cost substantially equals the fair value of these financial instruments due to their short term nature. Each Fund’s obligation for net assets attributable to unitholders is presented at the redemption amount, which approximates fair value.

e) Fair value measurement: Fair value is the price that would be received on the sale of an asset or paid to retire a liability in an orderly transaction between market participants at the measurement date. When available, the Funds measure the fair value of a financial instrument using the close of trading prices within the bid-ask spread in an active market for that instrument. A market is regarded as active if quoted prices are readily and regularly available and represent actual and regularly occurring market transactions on an arm’s length and orderly basis.

Securities listed upon a recognized public stock exchange are valued at last traded market price for both financial assets and liabilities where the last traded price falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the point within the bid-ask spread that is most representative of fair value, based on the specific facts and circumstances.

Fixed income securities are valued at the mean of the bid and ask prices received from recognized investment dealers.

Investment funds are valued at the closing net asset value per unit reported by the administrators of such funds.

If a market for a financial instrument is not active, or a security is not listed upon a recognized stock exchange, the Funds establish fair value using valuation techniques. Valuation techniques include using recent arm’s length transactions between knowledgeable, willing parties, reference to the current fair value of other instruments that are substantially the same, discounted cash flow analyses and other models. The selected technique makes maximum use of market inputs, relies as little as possible on estimates specific to such Fund, incorporates all factors that market participants would consider in setting a price and is consistent with accepted methodologies for pricing financial instruments. Inputs to valuation techniques reasonably represent market expectations and measures of risk-return factors inherent in the financial instruments.

The carrying values of cash, subscriptions receivable, interest receivable, payable for investments purchased, redemptions payable, distributions payable, accrued liabilities and each Fund’s obligation for NAV substantially equals their fair values due to their short-term nature.

f) Net assets attributable to unitholders (“NAV”): NAV represent the various series of redeemable units issued by each Fund (“Units”). The Units represent financial liabilities of each Fund and are presented at their redemption amounts. Units do not meet the criteria to be classified as equity if they impose on the Funds the obligation to deliver cash other than on redemption. As each Fund must distribute its taxable income to unitholders annually and has provided unitholders the option to receive distributions in cash, the Units do not meet the criteria to be classified as equity.

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2. Significant accounting policies (continued)

g) Impairment of financial assets: At each reporting date, each Fund assesses whether there is objective evidence that any financial asset at amortized cost is impaired. If such evidence exists, such Fund recognizes an impairment loss as the difference between the amortized cost of the financial asset and the present value of the estimated future cash flows, discounted using the instrument’s original effective interest rate. Impairment losses are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized.

h) Income recognition: Total income (loss) includes dividends, interest for distribution purposes, net realized gains (losses) on sale of investments, changes in unrealized appreciation (depreciation) in value of investments, distributions received from investment trusts, net realized gains (losses) on foreign currency contracts, change in unrealized appreciation (depreciation) on foreign currency contracts, foreign exchange gains (losses) on cash, and securities lending income.

Dividend income is recognized on the ex-dividend date. The interest for distribution purposes represents the coupon interest received by the Funds, accounted for on an accrual basis. The Funds do not amortize premiums paid or discounts received on the purchase of fixed income securities, except for zero coupon fixed income securities which are amortized on a straight line basis over the term to maturity. Net realized gains (losses) on sale of investments and change in unrealized appreciation (depreciation) in investments are determined on an average cost basis. Distributions received from investment trust units are recorded as dividends, interest for distribution purposes, net realized gains (losses) on sale of investments or a return of capital, based on the best information available to the Manager. Due to the nature of those investments, actual allocations could vary from this information. Amounts recorded as a return of capital reduce the tax cost of those investments. Net realized gains (losses) on foreign currency contracts represent the amount realized on closing out such derivative contracts. Changes in unrealized appreciation (depreciation) in foreign currency contracts represents, for such instruments that continue to be held, the gains (losses) which would result if such contracts were closed out on the valuation date. Securities lending income is accrued daily over the period the securities are loaned.

Net gains (losses) on investments and derivative contracts, as defined in IFRS 7, include the following items:

 HFT: net realized gains (losses) on foreign currency contracts, change in unrealized appreciation (depreciation) of foreign currency contracts, dividend expense on securities sold short, interest expense paid on securities sold short, net realized gains (losses) on sale of securities sold short, and change in unrealized appreciation (depreciation) in value of securities sold short.

 All other FVTPL investments: dividend income, interest income for distribution purposes, net realized gains (losses) on sale of investments, change in unrealized appreciation (depreciation) in value of investments and distributions received from investment trusts.

i) Expenses: All expenses are recognized in the Statements of Operations on an accrual basis. Brokerage commissions and other transaction costs are expensed in the period incurred, and are reported as “Transaction costs” in the Statements of Operations.

j) Foreign currency balances and transactions: The fair values of investments and other assets and liabilities in foreign currencies are converted into Canadian dollars at the rates of exchange prevailing on each valuation date. Purchases and sales of investments, income and expenses are converted at the rates of exchange prevailing on the respective dates of such transactions. Foreign exchange gains (losses) on completed transactions are included in net realized gains (losses) on sale of investments and unrealized gains (losses) are included in change in unrealized appreciation (depreciation) in value of investments.

k) Offsetting: Financial assets and liabilities are offset and the net amount is reported in the Statements of Net Assets of a Fund when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously.

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2. Significant accounting policies (continued)

l) Future changes in accounting policies: The final version of IFRS 9, Financial instruments, was issued by the IASB in July, 2014, and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantially reformed approach to hedge accounting. The new single principle-based approach for determining the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. The new model also results in

a single impairment model being applied to all financial instruments, which will require more timely recognition of expected credit losses.

IFRS 9 is effective for annual periods beginning on or after January 1, 2018, but is available for early adoption. The Funds are in the process of assessing the impact of IFRS 9.

3. Units:

All Funds are authorized to issue Series W and Series I Units, and certain funds are authorized to issue Series C Units. Each Fund may issue an unlimited number of such Fund’s Units of each series, which are redeemable at NAV per unit for the series at the unitholder’s option, in accordance with the provisions of the Declaration of Trust. There are certain minimum purchase amounts for each series of Units. The changes in the number of issued Units are disclosed in the Statements of Changes in Net Assets Attributable to Unitholders.

The capital of each Fund consists of the NAV. In accordance with each Fund’s investment objectives and the risk management policies stated in Note 8, each Fund invests its capital in appropriate investments.

The increase (decrease) in NAV from operations per Unit of a Series for each Fund is calculated by dividing the increase (decrease) in NAV from operations of the Series by the weighted average number of units of the Series outstanding during the period. The weighted average number of Units outstanding for each Fund is disclosed in each Fund’s Supplementary Schedules.

4. Operating expenses:

Each Fund’s operating expenses consist of the management fee and administration fee paid to the Manager as described below, interest charges, fees and expenses of the Independent Review Committee, transaction costs, foreign withholding taxes when applicable, any new costs related to regulatory or legal requirements imposed upon the Fund, the HST on all of these expenses, and any income taxes to which the Fund may be subject. Management and administration fees as reported in the Statements of Operations are due to the Manager.

The NAV of each Fund attributable to Series W and Series C Units is subject to a management fee charged to the Fund and payable to the Manager. The Series I Units are not subject to a management fee. Management fees in respect of Series I Units are agreed upon directly by the unitholders and the Manager and are paid by the unitholders to the Manager outside the Fund.

The Manager charges to each Fund an administration fee at a fixed annual rate, based on the daily average NAV of the Fund. In return for the administration fee, the Manager provides key management personnel to the Fund, and pays certain variable operating expenses of the Fund, including audit, custody, transfer agency, fund accounting, filing, unitholder reporting, legal, other related expenses, and HST on these expenses. The administration fee rate paid by each Fund is disclosed in each Fund’s Supplementary Schedules.

The management and administration fees, which are considered to be related party transactions, are accrued daily and are payable monthly in arrears.

5. Income taxes:

The Funds qualify as unit trusts (and certain Funds qualify as mutual fund trusts) under the provisions of the Income Tax Act (Canada) and, as such, each Fund is not subject to income taxes on its net taxable capital gains and its net income for the period, if it distributes such gains and income (less any applicable losses carried forward) to its unitholders. As required by the Declaration of Trust, the taxable income of each Fund is allocated and distributed annually to its unitholders so as to eliminate any income taxes otherwise payable by the Funds. As a result, each Fund does not record a provision for Canadian income taxes. In addition, each Fund does not record the benefit of any income tax losses carried forward.

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5. Income taxes (continued):

The Funds may incur foreign withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are disclosed separately as an expense in the Statements of Operations.

The amounts of any tax losses available to be carried forward and applied against future capital gains or income by each Fund are disclosed in each Fund’s Supplementary Schedules.

6. Soft dollar transactions:

Soft dollar transactions represent formal pre-arranged commitments whereby a portion of the brokerage commissions paid by a Fund are allocated according to a pre-determined formula as payment for certain products or services other than order execution.

There were no soft dollar transactions in any Funds for the periods ending June 30, 2015 and 2014.

7. Distributions:

Distributions to unitholders by each Fund are made on a periodic basis, and reported in the Statements of Changes in Net Assets Attributable to Unitholders. Unitholders have the option to receive distributions in cash or reinvest the distributions into additional Units of that Fund.

8. Financial risk management:

Each Fund’s financial instruments consist principally of cash, short-term securities and investments. As a result, each Fund is exposed to various types of financial risks that are associated with its investment strategies, financial instruments and the markets in which it invests. The most significant financial risks include market risk, which includes currency risk, interest rate risk and other price risk, concentration risk, liquidity risk and credit risk.

For risk management purposes the Manager looks through its underlying Funds to the risks of the investments held by those underlying Funds.

These risks and related risk management practices employed by the Funds, and where applicable the underlying Funds, are discussed below:

a) Market risk

(i) Currency risk The Funds may hold assets and liabilities that are denominated in currencies other than the functional currency of the Fund. Such Funds may therefore be exposed to currency risk, as the value of the net assets denominated in other currencies will fluctuate due to changes in exchange rates. The currency risk of each Fund is disclosed in each Fund’s Supplementary Schedules.

(ii) Interest rate risk The Funds may be exposed to interest rate risk directly through their investments in fixed-income securities and indirectly through investments in other Funds which hold fixed-income securities, including the Guardian Canadian Short-Term Investment Fund. Details of the interest rate risk for each Fund are disclosed in each Fund’s Supplementary Schedules.

(iii) Other price risk Other price risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market prices. The investments of the Funds are subject to price fluctuations and the risks inherent in financial markets. The Manager moderates this risk through a careful selection of securities within specified limits as outlined in the investment policies of each Fund, and through diversification of the investment portfolios.

The Manager monitors each Fund’s overall market positions on a daily basis, and positions are maintained within established ranges. The other price risk of each Fund is disclosed in each Fund’s Supplementary Schedules.

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8. Financial risk management (continued):

b) Concentration risk

The Funds are exposed to the possible risks inherent in the concentration of the investment portfolios in a small number of industries, countries and other investment sectors. The Manager moderates this risk through diversification of investment sectors it invests in, and a careful selection of securities in each investment sector within established ranges, as outlined in the investment policies of each Fund. The concentration risk of each Fund is disclosed in each Fund’s Supplementary Schedules.

c) Liquidity risk The Funds are exposed to daily cash needs related to the redemption of Units, and to the discharge of financial obligations related to their daily operations. The ability to meet these needs is managed, directly or indirectly through its underlying Funds, by retaining sufficient cash within each Fund, and investing mainly in securities which are considered readily realizable and highly liquid. The Funds are subject to securities regulations which limit the amount of illiquid investments it may hold. In addition, the Fund may borrow from the Custodian on a short-term basis at the Canadian or United States bank prime rate plus 2.0%. All liabilities of the Funds are short-term in nature and are due within 60 days.

d) Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge its obligation and cause the other party to incur a financial loss. The Funds may be exposed to credit risk through their holding of debt securities and investment funds which hold debt securities, and dealings with counterparties to the over-the-counter derivative instruments held by the Funds.

9. Classification of financial instruments for fair value measurements:

Each Fund’s financial instruments are recorded at fair value, and have been categorized based upon a fair value hierarchy, which is as follows: Level 1 – quoted market prices; Level 2 – internal models using observable market information as inputs; and, Level 3 – internal models without observable market information inputs. The fair values of each Fund’s financial instruments as categorized within the fair value hierarchy have been disclosed in each Fund’s Supplementary Schedules, accompanied by a schedule of significant transfers between these levels.

a) Investment funds Each Fund’s investments in other investment funds are classified as Level 1, as the investment funds are actively traded and a reliable price is observable.

b) Equity investments Each Fund’s equity investments are classified as Level 1 when the investment is actively traded and a reliable price is observable. Certain of the Funds’ equity investments do not trade frequently and, therefore, observable prices may not be available. In such cases, fair value is determined using observable market data (e.g., transactions for similar securities of the same issuer), and the fair value is classified as Level 2, unless the determination of fair values requires significant unobservable data, in which case the measurement is classified as Level 3.

(c) Bonds and short-term securities Bonds include primarily government and corporate bonds and mortgage-backed securities, which are valued using market bid and ask prices where available. The inputs that are significant to valuation are generally observable, and therefore the Funds’ bonds and short-term securities have been classified as Level 2.

10. Securities lending:

Each Fund may enter into a securities lending agreement under which securities loaned earn for the Fund securities lending income at market rates. The Funds which have entered into securities lending agreements have done so with their custodian, which has a credit rating of AA- (2013, AA). The securities lending arrangements are revolving, and can be terminated at any time by the borrowers, the custodian or the Fund. The Funds will receive collateral of at least 105% of the value of the securities on loan, which will generally comprise obligations guaranteed by the Government of Canada or a province thereof, or other governments with appropriate credit ratings. In the event that a loaned security is not returned to the custodian, the custodian may, at its option, either restore a security identical to the loaned security, or pay to the Fund the value of the collateral up to but not exceeding the market value of the loaned security on the date on which the loaned security was to have been returned (“Valuation Date”). If the collateral is not sufficient to allow the custodian to pay such market value to the Fund, the custodian shall indemnify the Fund for the difference between the fair value of the security and the value of such collateral on the Valuation Date. 134

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10. Securities lending (continued):

The securities lending income, the value of the securities on loan, and the collateral received for such loans, are disclosed in each Fund’s Supplementary Schedules.

11. Related party unitholders:

Units of each of the Funds held by affiliates and officers of the Manager, or other investment funds managed by the Manager, are disclosed in each Fund’s Supplementary Schedules.

12. Investments in non-consolidated structured entities:

The Funds may, from time to time, invest in investment funds, exchange-traded funds, mortgage-related and other asset backed securities and other investments which may be considered to be non-consolidated structured entities. The Fund provides no support to these structured entities beyond its investment in these entities. The maximum exposure to loss for each Fund is limited to the amount presented in the Schedule of Investments for each such investment.

13. Financial statement review:

These financial statements have not been reviewed by the Fund’s auditors.

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Guardian Capital LP Suite 3100, Commerce Court West, 199 Bay Street, Toronto, Ontario M5L 1E8 T: 1.866.718.6517 | F: 416.364.2067

You can find more information about each Fund in the Fund’s Simplified Prospectus, each Fund’s Fund Facts and Management Report of Fund Performance, once available, and Financial Statements. For a free copy of these documents, call us toll free at 1-866-718-6517 or ask your investment advisor. You may find these documents and other information about the Funds, such as information circulars and material contracts, at www.guardiancapitallp.com or at www.sedar.com.