Purpose Global Resource Fund Purpose Global Innovators Fund Purpose Special Opportunities Fund Purpose Enhanced Premium Yield Fund Purpose Global Bond Class

PURPOSE GLOBAL RESOURCE FUND PURPOSE GLOBAL INNOVATORS FUND PURPOSE SPECIAL OPPORTUNITIES FUND PURPOSE ENHANCED PREMIUM YIELD FUND PURPOSE GLOBAL BOND CLASS

UNAUDITED INTERIM FINANCIAL STATEMENTS For the financial period ended April 30, 2021 PURPOSE MUTUAL FUNDS LIMITED

TABLE OF CONTENTS NOTICE TO SHAREHOLDERS Notice to shareholders Purpose Investments Inc., the Manager of Purpose Global Resource Fund, Purpose Global Innovators Fund, Purpose Special Opportunities Fund, Purpose Enhanced Purpose Global Premium Yield Fund, Purpose ResourceGlobal Bond Class, (collectively, the “Funds”), Fund 1 Purpose Global appoints independent auditorsInnovators to audit the Fund’s annual Financial Statements. Fund 8 Purpose Special Under Canadian securitiesOpportunities laws (National Instrument 81-106), if an auditor hasFund 16 not reviewed the interim Financial Statements, this must be disclosed in an Purpose Enhanced accompanying notice.Premium The Fund’s independent auditor has not performedYield a review Fund 24 Purpose Global of these interim Financial StatementsBond in accordance with the standards established Class 32 by the Chartered Professional Accountants of Canada. Notes to the financial statements 42 Corporate information Back cover

2021 INTERIM REPORT PURPOSE GLOBAL RESOURCE FUND

INTERIM FINANCIAL STATEMENTS (unaudited)

STATEMENTS OF FINANCIAL POSITION (unaudited) As at: April 30, October 31, 2021 2020 ($) ($) Assets Investments: Non-derivative financial assets 13,514,696 9,891,873 Cash and cash equivalents – 262,759 Cash held at broker for margin 39,687 43,016 Receivables: Dividends 7,540 7,826 Investment securities sold 100,239 184,000 Prepaid expenses 21,416 24,080 Derivative assets: Warrants 25,016 72,182 Total assets 13,708,594 10,485,736 Liabilities Investments sold short – 57,256 Bank overdraft 212,349 – Payables: Management fees (note 5) 51,934 45,353 Distributions – 3,073 Independent review committee fees (note 5) 3,053 788 Other accrued liabilities 92,018 58,558 Capital shares redeemed 4,479 13,340 Investment securities purchased – 49,852 Total liabilities 363,833 228,220 Net assets attributable to holders of redeemable shares 13,344,761 10,257,516 Net assets attributable to holders of redeemable shares per series Series A 163,594 154,448 Series B 6,373,203 5,121,621 Series F 6,144,032 4,505,596 Series L 663,932 475,851 Total 13,344,761 10,257,516 Number of shares outstanding (note 4) Series A 107,470 140,001 Series B 5,391,884 5,977,019 Series F 4,473,938 4,584,910 Series L 396,927 399,127 Net assets attributable to holders of redeemable shares per share Series A 1.52 1.10 Series B 1.18 0.86 Series F 1.37 0.98 Series L 1.67 1.19 The accompanying notes are an integral part of the financial statements.

Approved on behalf of the Board of Directors of Purpose Mutual Funds Limited.

Som Seif Douglas Hall Director Director June 29, 2021

2021 INTERIM REPORT 1 PURPOSE GLOBAL RESOURCE FUND

STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Income Increase (decrease) in net assets attributable to holders of Net gains (losses) on investments and derivatives: redeemable shares per series (note 8) Dividend income 145,875 168,800 Series A 64,402 (52,318) Interest income for distribution purposes – 76 Series B 2,173,481 (1,308,391) Net realized gain (loss) on sale of non-derivative financial Series F 2,008,611 (1,186,202) assets 81,650 (3,767,750) Series L 211,488 (127,607) Net change in unrealized appreciation (depreciation) on Total 4,457,982 (2,674,518) non‑derivative financial assets 4,495,084 1,085,614 Average number of shares outstanding for the period per Net change in unrealized appreciation (depreciation) series (note 8) on warrants (47,166) 53,818 Series A 121,581 172,599 Net gains (losses) on investments and derivatives 4,675,443 (2,459,442) Series B 5,638,175 5,957,022 1, 2 Securities lending 17,551 10,407 Series F 4,515,543 4,852,725 Foreign exchange gain (loss) on cash (13,510) 15,082 Series L 395,514 420,129 Total revenue 4,679,484 (2,433,953) Increase (decrease) in net assets attributable to holders of Expenses redeemable shares per share (note 8) Management fees (note 5) 138,746 141,893 Series A 0.53 (0.30) Custodian and fund accounting fees 59,664 51,321 Series B 0.39 (0.22) Transaction costs (note 9) 22,015 62,283 Series F 0.44 (0.24) Audit fees 13,432 13,545 Series L 0.53 (0.30) Legal fees 12,606 5,158 Unitholder reporting 5,833 – (1) Securities lending: Withholding taxes (tax reclaims) (note 7) 2,879 1,966 The value of securities loaned and collateral received from securities lending as at April 30 is as follows: Independent review committee fees (note 5) 2,265 773 April 30, 2021 April 30, 2020 Interest and bank charges 801 241 Value of securities loaned 2,009,998 1,491,644 Stock borrow fees 399 – Value of collateral received 2,116,403 1,575,336 Dividend expenses on short positions – 4,269 (2) Securities lending Income The table below shows a reconciliation of the gross amount generated from the securities lending transactions Other expenses (note 5) 3,125 1,130 of the Fund to the revenue from the securities lending disclosed in the Statement of Comprehensive Income. Total expenses 261,765 282,579 April 30, 2021 April 30, 2020 Expenses waived/absorbed by the Manager (40,263) (42,014) $ % $ % Net expenses 221,502 240,565 Gross securities lending income 29,460 1.0 17,624 100.0 Increase (decrease) in net assets attributable to holders of Withholding taxes (210) (0.0) (186) (1.1) redeemable shares 4,457,982 (2,674,518) Agent fees (11,698) (0.4) (7,031) (39.9) Securities lending income 17,551 0.6 10,407 59.0 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 2 PURPOSE GLOBAL RESOURCE FUND

STATEMENTS OF CHANGES IN FINANCIAL POSITION (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Series A Series F Net assets attributable to holders of redeemable shares at beginning of period 154,448 268,781 Net assets attributable to holders of redeemable shares at beginning of period 4,505,596 6,473,758 Increase (decrease) in net assets attributable to holders of redeemable shares 64,402 (52,318) Increase (decrease) in net assets attributable to holders of redeemable shares 2,008,611 (1,186,202) Redeemable share transactions Redeemable share transactions Exchange of redeemable shares (34,381) (12,363) Proceeds from issuance of redeemable shares 87,465 – Payments for redemption of redeemable shares (20,715) (52,526) Exchange of redeemable shares 34,381 (60,145) Reinvestment of distributions 7,982 10,537 Payments for redemption of redeemable shares (471,858) (823,787) Net increase (decrease) from redeemable share transactions (47,114) (54,352) Reinvestment of distributions 217,074 229,782 Distributions paid or payable to shareholders of redeemable shares Net increase (decrease) from redeemable share transactions (132,938) (654,150) From investment income (8,142) – Distributions paid or payable to shareholders of redeemable shares Return of capital – (11,612) From investment income (237,237) – Total distributions to holders of redeemable shares (8,142) (11,612) Return of capital – (253,655) Net increase (decrease) in net assets attributable to holders of Total distributions to holders of redeemable shares (237,237) (253,655) redeemable shares 9,146 (118,282) Net increase (decrease) in net assets attributable to holders of Net assets attributable to holders of redeemable shares at end of period 163,594 150,499 redeemable shares 1,638,436 (2,094,007) Net assets attributable to holders of redeemable shares at end of period 6,144,032 4,379,751 Series B Net assets attributable to holders of redeemable shares at beginning of period 5,121,621 7,148,481 Series L Increase (decrease) in net assets attributable to holders of redeemable shares 2,173,481 (1,308,391) Net assets attributable to holders of redeemable shares at beginning of period 475,851 670,129 Redeemable share transactions Increase (decrease) in net assets attributable to holders of redeemable shares 211,488 (127,607) Proceeds from issuance of redeemable shares 41,632 4,019 Redeemable share transactions Exchange of redeemable shares 16,901 58,879 Payments for redemption of redeemable shares (23,122) (83,152) Payments for redemption of redeemable shares (967,159) (1,001,208) Reinvestment of distributions 20,541 21,825 Reinvestment of distributions 280,888 296,284 Net increase (decrease) from redeemable share transactions (2,581) (61,327) Net increase (decrease) from redeemable share transactions (627,738) (642,026) Distributions paid or payable to shareholders of redeemable shares Distributions paid or payable to shareholders of redeemable shares From investment income (20,826) – From investment income (294,161) – Return of capital – (21,951) Return of capital – (311,548) Total distributions to holders of redeemable shares (20,826) (21,951) Total distributions to holders of redeemable shares (294,161) (311,548) Net increase (decrease) in net assets attributable to holders of Net increase (decrease) in net assets attributable to holders of redeemable shares 188,081 (210,885) redeemable shares 1,251,582 (2,261,965) Net assets attributable to holders of redeemable shares at end of period 663,932 459,244 Net assets attributable to holders of redeemable shares at end of period 6,373,203 4,886,516 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 3 PURPOSE GLOBAL RESOURCE FUND

STATEMENTS OF CASH FLOWS (unaudited) For the periods ended: April 30, April 30, 2021 2020 ($) ($)

Cash Flows from Operating Activities Increase (decrease) in net assets attributable to holders of redeemable shares 4,457,982 (2,674,518) Adjustments for: Foreign exchange loss (gain) on cash 13,510 (1,450) Purchase of investments (5,799,173) (19,024,980) Proceeds from sale of investments 6,707,721 21,061,594 Net realized loss (gain) on sale of investments (81,650) 3,767,750 Net change in unrealized depreciation (appreciation) in value of investments (4,495,084) (1,085,614) Net change in unrealized depreciation (appreciation) on warrants 47,166 (53,818) Net change in non-cash working capital balances 45,712 781 Transaction costs (note 9) 22,015 62,283 918,199 2,052,028

Cash Flows from Financing Activities Proceeds from issuance of shares 129,097 4,019 Share exchanges 16,901 (13,629) Payments for shares redeemed (1,491,714) (1,995,241) Distribution to holders, net of reinvestments (34,081) (40,338) (1,379,797) (2,045,189)

Foreign exchange gain (loss) on cash (13,510) 1,450 Net increase (decrease) in cash and cash equivalents (461,598) 6,839 Cash and cash equivalents, at beginning of period 262,759 284,126 Cash and cash equivalents, at end of period (212,349) 292,415 Interest received (paid) – 76 Dividends received (paid), net of withholding taxes 143,482 169,996 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 4 PURPOSE GLOBAL RESOURCE FUND

SCHEDULE OF INVESTMENTS (unaudited) As at April 30, 2021 Number of Number of Shares/Units/ Average Cost Fair Value Shares/Units/ Average Cost Fair Value Par Value ($) ($) Par Value ($) ($) Equities – 101.27% Materials – 24.67% Energy – 65.50% Agnico Eagle Mines Ltd. 3,056 169,246 234,762 *Andora Energy Corp. 332,107 236,440 16,605 Aldebaran Resources Inc. 13,999 2,100 7,000 ARC Resources Ltd. 53,500 362,870 413,555 Altius Renewable Royalties Corp. 6,780 74,580 68,139 Canadian Natural Resources Ltd. 14,550 517,455 542,861 B2Gold Corp. 13,600 112,948 80,512 Enbridge Inc. 8,000 422,587 379,280 Calibre Mining Corp. 108,350 65,010 217,784 EOG Resources Inc. 3,166 466,944 286,569 Chantrell Ventures Corp. 64,500 250,260 163,185 Equinor ASA ADR 11,000 255,641 274,063 Excellon Resources Inc. 14,321 75,901 47,259 *EverGen Infrastructure Corp. 100,000 500,000 800,000 Franco-Nevada Corp. 2,253 204,121 385,781 Hess Midstream L.P. 1,000 26,303 27,447 Ivanhoe Mines Ltd., Class 'A' 40,563 131,894 351,681 HollyFrontier Corp. 16,450 603,440 707,683 K92 Mining Inc. 50,000 129,410 401,000 Keyera Corp. 7,950 242,326 223,474 *Minecore Inc. 3,583,213 2,687,410 – MEG Energy Corp. 78,000 349,893 529,620 Nobel29 Resources Corp. 200,000 80,000 148,000 NexGen Energy Ltd. 75,000 223,500 348,000 Nutrien Ltd. 5,000 268,700 339,250 Parex Resources Inc. 17,100 291,939 395,865 *Ocean Harvest Technology Inc. 20,833 – – Pembina Pipeline Corp. 3,750 117,247 142,275 Osisko Gold Royalties Ltd. 10,000 160,126 148,400 Pioneer Natural Resources Co. 2,400 599,488 453,792 Osisko Mining Inc. 39,758 159,088 127,623 Scorpio Tankers Inc 6,250 136,802 139,355 Regulus Resources Inc 42,000 79,800 31,080 Spartan Delta Corp. 17,758 53,725 78,135 Teck Resources Limited, Class 'B' 20,800 626,731 541,008 Topaz Energy Corp. 31,900 434,063 462,231 *Veris Gold Corp. 673,000 – – Tourmaline Oil Corp. 33,800 500,918 896,376 5,277,325 3,292,464 Valero Energy Corp. 2,100 142,117 190,907 Utilities – 6.40% Vine Energy Inc. 4,700 67,808 73,946 Greenlane Renewables Inc. 204,000 198,841 359,040 Whitecap Resources Inc. 252,500 764,563 1,358,450 Innergex Renewable Energy Inc. 3,400 88,672 71,400 7,316,069 8,740,489 Northland Power Inc. 10,000 422,300 423,400 Financials – 2.69% 709,813 853,840 Arctos NorthStar Acquisition Corp. 1,000 12,587 12,304 Total Equities – 101.27% 14,005,552 13,514,523 DHC Acquisition Corp. 1,000 12,619 12,230 Money Market Funds – 0.00% Hudson Executive Investment Corp III 1,000 12,511 12,298 Purpose High Interest Savings ETF 1 50 50 *Imperial Helium Corp. 800,000 200,000 200,000 Purpose US Cash ETF 1 105 123 Kismet Acquisition Three Corp. 1,000 12,677 12,255 155 173 Kismet Acquisition Two Corp. 1,000 12,619 12,242 Total Money Market Funds – 0.00% 155 173 NightDragon Acquisition Corp. 1,000 12,619 12,365 Total Long Positions – 101.27% 14,005,707 13,514,696 Northern Star Investment Corp. III 1,000 12,620 12,291 Transaction Costs (note 9) (15,702) – Northern Star Investment Corp. IV 1,000 12,620 12,267 Total Investments – 101.27% 13,990,005 13,514,696 Orion Acquisition Corp. 1,000 12,620 12,292 Warrants (Schedule 1) – 0.19% 25,016 SilverBox Engaged Merger Corp. 1,000 12,726 12,322 Cash and Cash Equivalents – (1.59%) (212,349) TCW Special Purpose Acquisition Corp. 2,000 25,239 24,534 Margin – 0.30% 39,687 Velocity Acquisition Corp. 1,000 12,587 12,230 Other Assets, Less Liabilities – (0.17)% (22,289) 364,044 359,630 Net Assets – 100.00% 13,344,761 Industrials – 2.01% *Private securities classified as Level 3. Legend Power Systems Inc. 60,000 48,300 51,600 The accompanying notes are an integral part of the financial statements. *Oil Reserve Inc. 2,666,667 1 – Xebec Adsorption Inc. 50,000 290,000 216,500 338,301 268,100

SCHEDULE 1 – WARRANTS For the period ended April 30, 2021 Strike Price Shares Cost Fair Value Security Expiry Date ($) Currency or units ($) ($) Ascendant Resources Inc. March 7, 2022 1.25 CAD 197,500 21,359 4,444 Excellon Resources Inc. August 27, 2021 7.00 CAD 7,161 – 662 O3 Mining Inc. July 5, 2022 4.46 CAD 64,500 – 3,130 Osisko Development Corp. May 25, 2022 10.00 CAD 6,700 – 6,532 Troilus Gold Corp. June 23, 2022 1.50 CAD 75,000 – 10,248 21,359 25,016

2021 INTERIM REPORT 5 PURPOSE GLOBAL RESOURCE FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE GLOBAL RESOURCE FUND (unaudited)

A) INVESTMENT OBJECTIVES (NOTE 2) The following is a summary of the inputs used as of October 31, 2020 in valuing The Purpose Global Resource Fund seeks to provide current income and the Fund’s financial assets and financial liabilities carried at fair value: long-term capital appreciation by investing primarily in a diversified portfolio Level 1 Level 2 Level 3 Total of North American resource equity and income securities, including dividend ($) ($) ($) ($) paying or distribution paying North American resource equity and income Financial assets securities such as common shares, income trust units, convertible bonds, and, Equities 9,269,606 – 117,105 9,386,712 to a lesser extent, interest-bearing securities such as corporate bonds. The Fund Exchange Traded Funds 505,161 – – 505,161 may, from time to time, engage in the short-selling of securities that the Manager of the Fund believes are overvalued. Warrants 5,490 66,692 – 72,182 Total financial assets 9,780,257 66,692 117,105 9,964,055 B) REDEEMABLE PARTICIPATING SHARES (NOTE 4) Changes in outstanding shares during the periods ended April 30, 2021 and Financial liabilities October 31, 2020 are summarized as follows: Equities 57,256 – – 57,256 Number of Shares Total financial liabilities 57,256 – – 57,256 Series A Series B Series F Series L Total financial assets and liabilities 9,723,001 66,692 117,105 9,906,799 Shares Shares Shares Shares Outstanding, October 31, 2019 186,926 6,396,351 5,175,665 447,194 The following table reconciles the Fund’s Level 3 fair value measurements for the periods ended April 30, 2021 and October 31, 2020. Issued – 74,565 10,521 – Reinvested 16,131 637,188 427,995 33,755 2021 2020 Redeemed (63,056) (1,131,085) (1,029,271) (81,822) ($) ($) Outstanding, October 31, 2020 140,001 5,977,019 4,584,910 399,127 Beginning of period 117,105 33,211 Issued – 47,820 86,343 – Acquisitions 700,000 100,500 Reinvested 5,626 254,039 169,741 13,205 Sales (100,500) – Redeemed (38,157) (886,994) (367,056) (15,405) Net change in unrealized 300,000 (16,606) Outstanding, April 30, 2021 107,470 5,391,884 4,473,938 396,927 End of period 1,016,605 117,105

C) MANAGEMENT FEES, SERVICE FEES AND OTHER E) FINANCIAL RISKS (NOTE 11) EXPENSES (NOTE 5) Market price risk Annual Management Fee If equity securities prices had increased or decreased by 5% as at April 30, (% of Net Asset Value of each share) 2021, with all other variables held constant, the Fund’s net assets would Series Management Fee have increased or decreased, respectively, by approximately $0.7 million Series A Shares* 1.90% (October 31, 2020 – $0.5 million). In practice, actual results may differ from this sensitivity analysis and the difference could be material. Series B Shares* 1.90% Series F Shares 0.90% Interest rate risk Series L Shares 0.90% As at April 30, 2021 and October 31, 2020, the Fund had no significant exposure * Includes a service fee at an annual rate of 1.00% of the daily average Net Asset Value toof debt the instruments.Series A shares and Series B shares. Currency risk D) FAIR VALUE INVESTMENTS (NOTE 10) The table below summarizes the Fund’s direct exposure to foreign currencies as at April 30, 2021, including the fair value of currency contracts that are used to The following is a summary of the inputs used as of April 30, 2021 in valuing the hedge the foreign currency risk: Fund’s financial assets and financial liabilities carried at fair value: Fair Value Forward Net Level 1 Level 2 Level 3 Total Excluding Forward Currency Currency ($) ($) ($) ($) Currency Contracts Contracts Exposure % of Financial assets Currency ($) ($) ($) Net Assets Equities 12,497,918 – 1,016,605 13,514,523 US Dollar 2,394,526 – 2,394,526 18.0 Funds 173 – – 173 Net exposure 2,394,526 – 2,394,526 18.0 Warrants – 25,016 – 25,016 Total financial assets 12,498,091 25,016 1,016,605 13,539,712 The table below summarizes the Fund’s direct exposure to foreign currencies as Total financial assets and liabilities 12,498,091 25,016 1,016,605 13,539,712 at October 31, 2020, including the fair value of currency contracts that are used to hedge the foreign currency risk: Fair Value Forward Net Excluding Forward Currency Currency Currency Contracts Contracts Exposure % of Currency ($) ($) ($) Net Assets US Dollar 1,333,559 – 1,333,559 13.0 Net exposure 1,333,559 – 1,333,559 13.0

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 6 PURPOSE GLOBAL RESOURCE FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE GLOBAL RESOURCE FUND (unaudited) (continued)

$0.1 million (October 31, 2020 – $0.1 million). In practice, actual results may differ from this sensitivity analysis and the difference could be material. Credit risk As at April 30, 2021 and October 31, 2020 the Fund was primarily invested in equity securities and had no significant exposure to credit risk, except for forward and futures contracts where the risk is considered minimal as the counterparties both have a high credit rating.

F) INTEREST IN UNDERLYING FUNDS The Fund invests in redeemable shares of other investment fund (“underlying funds”) to gain exposure to the investment objectives and strategies of the underlying funds. One underlying fund is generally financed through the capital invested by the Fund, along with other investors, which entitles shareholders to a proportionate share of the underlying fund’s net assets. The Fund does not provide additional financial or other support to the underlying funds. All underlying funds were established in and carry out their operations in Canada. The Fund’s interests in underlying funds are reported at fair value in “Investments” in its Statements of Financial Position and in its Schedule of Investments, which represents the Fund’s maximum exposure to financial loss. April 30, 2021 October 31, 2020 % of Ownership % of Ownership Underlying Funds Net Assets Interest % Net Assets Interest % Purpose High Interest Savings ETF 0.0 0.0 4.9 0.0 Purpose US Cash Fund 0.0 0.0 0.0 0.0

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 7 PURPOSE GLOBAL INNOVATORS FUND

INTERIM FINANCIAL STATEMENTS (unaudited)

STATEMENTS OF FINANCIAL POSITION (unaudited) As at: April 30, October 31, April 30, October 31, 2021 2020 2021 2020 ($) ($) ($) ($) Assets Net assets attributable to holders of redeemable shares per series Investments: ETF Shares 3,018,412 2,558,743 Non-derivative financial assets 63,002,154 46,524,977 Series A 29,583,090 27,262,668 Cash and cash equivalents 357,357 91,200 Series B 8,187,879 7,217,509 Cash held at broker for margin 1,075,509 1,165,765 Series F 23,991,604 11,178,247 Receivables: Total 64,780,985 48,217,167 Dividends 10,240 15,315 Number of shares outstanding (note 4) Interest 6,719 74,171 ETF Shares 100,000 100,000 Capital shares sold 211,750 520,274 Series A 1,089,769 1,178,238 Investment securities sold – 1,030,188 Series B 300,797 311,128 Prepaid expenses 10,142 21,107 Series F 803,306 441,518 Refundable tax 6,856 7,431 Net assets attributable to holders of redeemable shares per share Derivative assets: ETF Shares 30.18 25.59 Warrants 398,202 168,035 Series A 27.15 23.14 Unrealized gain on forward currency contracts 210,781 – Series B 27.22 23.20 Total assets 65,289,710 49,618,463 Series F 29.87 25.32 Liabilities The accompanying notes are an integral part of the financial statements. Payables: Management fees (note 5) 95,748 87,992 Approved on behalf of the Board of Directors of Purpose Mutual Funds Limited. Independent review committee fees (note 5) 3,041 691 Other accrued liabilities (note 5) 11,277 – Capital shares redeemed 94,659 56,675 Investment securities purchased 304,000 1,019,082 Som Seif Douglas Hall Derivative liabilities: Director Director Unrealized loss on forward currency contracts – 236,856 June 29, 2021 Total liabilities 508,725 1,401,296 Net assets attributable to holders of redeemable shares 64,780,985 48,217,167

2021 INTERIM REPORT 8 PURPOSE GLOBAL INNOVATORS FUND

STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Income Increase (decrease) in net assets attributable to holders of redeemable shares Net gains (losses) on investments and derivatives: per series (note 8) Dividend income 96,879 102,133 ETF Shares 459,669 164,256 Interest income for distribution purposes (11,018) 60,789 Series A 4,752,005 2,145,012 Net realized gain (loss) on sale of non-derivative financial assets 6,748,392 1,960,002 Series B 1,217,659 496,004 Net realized gain (loss) on currency forward contracts 745,879 (1,100,823) Series F 2,069,554 420,806 Net realized gain (loss) on options – 29,658 Series X – 5,297 Net change in unrealized appreciation (depreciation) on non-derivative Total 8,498,887 3,231,375 financial assets 1,097,266 2,512,596 Average number of shares outstanding for the period per series (note 8) Net change in unrealized appreciation (depreciation) on currency ETF Shares 100,000 100,000 forward contracts 447,637 (108,975) Series A 1,129,822 1,427,917 Net change in unrealized appreciation (depreciation) on warrants 230,167 192,267 Series B 302,078 341,363 Net gains (losses) on investments and derivatives 9,355,202 3,647,647 Series F 686,697 238,381 Foreign exchange gain (loss) on cash (140,278) 86,785 Series X – 2,552 Total revenue 9,214,924 3,734,432 Increase (decrease) in net assets attributable to holders of redeemable shares Expenses per share (note 8) Management fees (note 5) 724,357 496,989 ETF Shares 4.60 1.64 Transaction costs (note 9) 62,858 62,062 Series A 4.21 1.50 Custodian and fund accounting fees 42,214 23,831 Series B 4.03 1.45 Audit fees 13,308 6,416 Series F 3.01 1.77 Legal fees 12,894 2,443 Series X – 2.08 Withholding taxes (note 7) 10,671 4,450 The accompanying notes are an integral part of the financial statements. Operating fees 8,127 – Unitholder reporting 5,975 – Independent review committee fees (note 5) 2,350 1,966 Interest and bank charges 1,365 5,090 Dividend expenses on short positions – 229 Stock borrow fees – 2,668 Other expenses (note 5) 1,300 1,870 Total expenses 885,419 608,014 Expenses waived/absorbed by the Manager (169,382) (104,957) Net expenses 716,037 503,057 Increase (decrease) in net assets attributable to holders of redeemable shares 8,498,887 3,231,375

2021 INTERIM REPORT 9 PURPOSE GLOBAL INNOVATORS FUND

2021 INTERIM REPORT 10 PURPOSE GLOBAL INNOVATORS FUND

STATEMENTS OF CASH FLOWS (unaudited) For the periods ended: April 30, April 30, 2021 2020 ($) ($)

Cash Flows from Operating Activities Increase (decrease) in net assets attributable to holders of redeemable shares 8,498,887 3,231,375 Adjustments for: Foreign exchange loss (gain) on cash 91,398 (67,322) Purchase of investments (56,617,744) (60,321,348) Proceeds from sale of investments 48,238,473 69,629,687 Proceeds to settlement of foreign exchange forward contracts 745,879 (1,100,823) Net realized loss (gain) on sale of investments (6,748,392) (1,960,002) Net realized loss (gain) on sale of options – (29,658) Net realized loss (gain) on sale of forward currency contracts (745,879) 1,100,823 Net change in unrealized depreciation (appreciation) in value of investments (1,097,266) (2,512,596) Net change in unrealized depreciation (appreciation) in value of forward currency contracts (447,637) 108,975 Net change in unrealized depreciation (appreciation) on warrants (230,167) (192,267) Net change in non-cash working capital balances 105,450 (26,756) Transaction costs (note 9) 62,858 62,062 Increase (decrease) in cash margin 90,256 (65,494) (8,053,884) 7,856,656

Cash Flows from Financing Activities Proceeds from redeemable shares issued 15,120,932 64,423 Share exchanges (56,634) (302,411) Payments for shares redeemed (6,652,859) (7,162,645) 8,411,439 (7,400,633)

Foreign exchange gain (loss) on cash (91,398) 67,322 Net increase (decrease) in cash and cash equivalents 357,555 456,023 Cash and cash equivalents, at beginning of period 91,200 7,353 Cash and cash equivalents, at end of period 357,357 530,698 Interest received (paid) 56,434 80,811 Dividends received (paid), net of withholding taxes 91,283 84,032 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 11 PURPOSE GLOBAL INNOVATORS FUND

SCHEDULE OF INVESTMENTS (unaudited) As at April 30, 2021 Number of Number of Shares/Units/ Average Cost Fair Value Shares/Units/ Average Cost Fair Value Par Value ($) ($) Par Value ($) ($) Long Positions – 97.26% Information Technology – 62.17% Equities – 95.55% Advanced Micro Devices Inc. 12,600 1,102,909 1,264,073 Communication Services – 5.59% Analog Devices Inc. 5,360 1,051,663 1,009,055 Activision Blizzard Inc. 13,110 840,416 1,469,450 Anaplan Inc. 11,280 711,330 827,036 Airbnb Inc. 3,670 899,399 779,091 Atlassian Corp. PLC, Class 'A' 5,880 1,155,961 1,716,942 *Axion Ventures Inc. 200,000 200,000 40,000 Avalara Inc. 3,670 692,258 639,251 Emerge Commerce Ltd. 622,100 698,690 690,568 Carebook Technologies Inc. 80,000 200,000 100,000 Leaf Mobile Inc. 1,334,000 300,150 626,980 *Coinsquare Ltd. 19,330 300,002 100,000 QYOU Media Inc. 31,795 6,435 13,354 Coupa Software Inc. 1,700 581,191 562,174 2,945,090 3,619,443 Crowdstrike Holdings Inc. 8,880 587,688 2,275,856 Consumer Discretionary – 7.84% Datadog Inc. 6,000 683,762 632,545 Aptiv PLC 4,700 310,983 831,253 DocuSign Inc. 5,802 1,184,533 1,589,903 Chewy Inc. 4,500 576,774 440,945 Dynatrace Inc. 13,160 671,439 841,779 Chinook Therapeutics Inc. 17,320 324,099 382,135 Elastic NV 6,390 506,725 947,382 *Cooltech Corp. 27,342 100,104 3,361 Guild Esports PLC 2,500,000 242,010 276,559 DraftKings Inc. 26,230 1,326,272 1,826,753 *HighMark Innovations Inc. 400,000 304,000 304,000 MercadoLibre Inc. 390 947,554 753,078 Lam Research Corp. 1,880 709,857 1,433,737 Pinduoduo Inc. ADR 3,600 665,496 592,632 LivePerson Inc. 14,570 705,937 978,711 *Tiidal Gaming Group Inc. 500,000 250,000 250,000 Marvell Technology Inc. 13,000 740,940 722,408 4,501,282 5,080,157 Mastercard Inc., Class 'A' 2,350 1,042,696 1,103,581 Consumer Staples – 0.67% Micron Technology Inc. 17,390 1,750,678 1,839,739 Crumbs Bake Shop Inc. 3,407 16 159 *Mobidia Technology Inc., Class 'A', Series '3' 301,946 1,699 – FansUnite Entertainment Inc. 287,894 63,840 230,315 *Mobidia Technology Inc., Class 'A', Series '5' 178,600 1,022 – *Freshlocal Solutions Inc. 27,000 202,500 202,500 MongoDB Inc. 2,630 715,642 961,588 266,356 432,974 *NVG Canada Finco Inc. 500,000 500,000 500,000 Financials – 1.37% NVIDIA Corp. 1,930 1,172,180 1,424,257 Nebula Caravel Acquisition Corp. 73,100 997,175 890,422 NXP Semiconductors NV 4,420 695,357 1,045,877 Okta Inc. 2,070 582,182 686,209 Health Care – 17.28% ON Semiconductor Corp. 28,210 1,263,197 1,352,299 Amgen Inc. 1,520 448,134 447,721 *Opera Event Inc. 184,723 254,730 245,988 CB2 Insights Inc. 387,500 460,200 620,000 *OverActive Media Corp. 134,000 301,500 301,500 Dicerna Pharmaceuticals Inc. 25,204 759,986 966,251 *PESA Corp. 787,280 15,746 – Gilead Sciences Inc. 9,836 884,637 767,347 *PMML CORP. 529,412 229,257 221,247 Greenbrook TMS Inc. 15,380 249,925 202,708 *Quisitive Technology Solutions Inc. 150,000 225,000 225,000 HLS Therapeutics Inc. 40,000 541,200 778,000 *Reciprocity Corp. 250,000 250,000 25,000 *Hydrx Pharms Ltd. 137,000 548,000 54,800 ServiceNow Inc. 1,880 1,281,069 1,170,121 Intra-Cellular Therapies Inc. 16,980 583,892 718,587 Shopify Inc., Class 'A' 1,030 1,356,737 1,497,087 Ionis Pharmaceuticals Inc. 12,370 780,349 651,060 *Simply Digital Technologies 210,000 210,000 210,000 kneat.com inc. 140,000 420,000 418,600 Skillz Inc. 20,000 657,172 430,694 *MagicMed Industries Inc. 400,000 200,000 200,000 Snowflake Inc. 4,330 1,442,725 1,232,573 Medicenna Therapeutics Corp. 89,150 425,246 396,718 Sprout Social Inc. 12,220 760,461 995,690 Merck & Co. Inc. 6,732 743,382 616,461 Square Inc., Class 'A' 2,820 982,196 848,596 MindBeacon Holdings Inc. 6,250 50,000 38,125 *Swarmio Media Holdings Inc. 571,429 200,000 200,000 NGM Biopharmaceuticals Inc. 12,810 420,226 432,999 Trade Desk Inc. (The) 940 950,663 842,646 Numinus Wellness Inc. 391,180 380,002 410,739 Twilio Inc. 4,890 1,365,914 2,210,678 *Panaxia Pharmaceutical Industries 691,987 454,696 273,958 Unity Software Inc. 11,190 1,334,478 1,397,151 Profound Medical Corp. 21,310 225,689 476,705 Visa Inc., Class 'A' 3,850 1,046,434 1,105,259 Stem Inc. 26,330 1,000,309 821,710 Wellteq Digital Health Inc. 833,300 249,990 162,494 *Synaptive Medical Units 193,738 431,821 416,733 Wishpond Technologies Ltd. 541,000 690,750 946,750 Veeva Systems Inc., Class 'A' 2,440 980,417 847,103 Zscaler Inc. 3,760 678,033 867,198 Vertex Pharmaceuticals Inc. 2,390 653,434 640,999 34,339,713 40,270,633 11,641,545 11,197,324 Materials – 0.63% Industrials – 0.00% Cematrix Corp. 750,000 300,000 405,000 *iON Worldwide LLC 147,714 – Total Equities – 95.55% 55,639,857 62,394,867

2021 INTERIM REPORT 12 PURPOSE GLOBAL INNOVATORS FUND

SCHEDULE OF INVESTMENTS (unaudited) (continued) As at April 30, 2021 Number of Shares/Units/ Average Cost Fair Value Par Value ($) ($) Money Market Funds – 0.77% Purpose High Interest Savings ETF 9,560 478,168 478,018 Purpose US Cash ETF 170 22,814 20,896 Total Money Market Funds – 0.77% 500,982 498,914 Fixed Income – 0.94% Canadian Corporate Bonds – 0.94% *Cricket Media Inc., 5.00%, 2025/09/21 22,593 100,000 – *Crumbs Bake Shop Inc. 325,000 – – *Eqitrade Ltd., Convertible Debenture, 8.00%, 2024/02/17 300,000 300,000 300,000 *Ivanhoe Energy Inc. 100,000 – – *Sabio Mobile, Convertible Note, 7.00%, 2021/12/31 250,000 315,500 307,287 715,500 607,287 Total Fixed Income – 0.94% 715,500 607,287 Total Long Positions – 97.26% 56,355,357 63,002,154 Transaction Costs (note 9) (27,110) – Total Investments – 97.26% 56,328,247 63,002,154 Net Unrealized Gain (Loss) on Forward Contracts (Schedule 1) – 0.33% 210,781 Warrants (Schedule 2) – 0.61% 398,202 Cash and Cash Equivalents – 0.55% 357,357 Cash Held at Broker for Margin – 1.66% 1,075,509 Other Assets, Less Liabilities – (0.41%) (263,018) Net Assets – 100.00% 64,780,985 *Private securities classified as Level 3. The accompanying notes are an integral part of the financial statements.

SCHEDULE 1 – FORWARD FOREIGN CURRENCY CONTRACT For the period ended April 30, 2021 S&P Credit Rating Settlement Currency Par Value Currency Par Value Forward Current Unrealized Gain Counterparty for Counterparty Date Buys ($) Sells ($) Rate Rate (Loss) ($) Canadian Imperial Bank of Commerce A-1 2021-05-21 CAD 14,606,094 USD (14,395,313) 1.247105 0.8140 210,781 210,781

SCHEDULE 2 – WARRANTS For the period ended April 30, 2021 Strike Price Shares Cost Fair Value Security Expiry Date ($) Currency or units ($) ($) Carebook Technologies Inc., Warrants, 2022/10/01 October 1, 2022 3.13 CAD 40,000 – 22,696 Cematrix Corp., Warrants, 2023/04/22 April 22, 2023 0.45 CAD 375,000 – 95,695 *Eqitrade Ltd., Warrants, 2026/02/17 February 17, 2026 3.00 CAD 130,500 – – HLS Therapeutics Inc., Warrants, 2021/08/11 August 11, 2021 10.13 USD 3,502 – 40,127 *MagicMed Industries Inc., Warrants, 2022/12/18 December 18, 2022 0.75 CAD 200,000 – – mCloud Technologies Corp. January 14, 2025 5.40 CAD 68,750 – 37,690 Numinus Wellness Inc., Warrants, 2022/12/29 December 29, 2022 0.90 CAD 95,590 – 57,845 Numinus Wellness Inc., Warrants, 2023/03/19 March 19, 2023 1.75 CAD 100,000 – 49,466 Profound Medical Corp., Warrants, 2023/03/20 March 20, 2023 14.00 CAD 5,500 – 55,310 *Synaptive Medical Units, Warrants, 2022/01/23 January 23, 2022 3.75 USD 96,869 – – Wellteq Digital Health Inc., Warrants, 2023/03/19 March 19, 2023 0.45 CAD 416,650 – 39,373 398,202 *Private securities classified as Level 3.

2021 INTERIM REPORT 13 PURPOSE GLOBAL INNOVATORS FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE GLOBAL INNOVATORS FUND (unaudited)

A) INVESTMENT OBJECTIVES (NOTE 2) The following is a summary of the inputs used as of October 31, 2020 in valuing The Purpose Global Innovators Fund seeks to provide shareholders with long the Fund’s financial assets and financial liabilities carried at fair value: term capital growth through the selection, management and strategic sector Level 1 Level 2 Level 3 Total rotation and trading of global positions in equity, debt and derivative securities. ($) ($) ($) ($) The Fund may have exposure to all sectors of the economy, with the ability to Financial assets focus its assets in specific industry sectors and asset classes based on analysis of Equities 43,211,767 – 2,946,226 46,157,993 business cycles, industry sectors and market outlook. The Fund will be global in Fixed income – – 300,000 300,000 nature and invest in small, medium and large cap companies. Funds 66,985 – – 66,985 B) REDEEMABLE PARTICIPATING SHARES (NOTE 4) Warrants – 168,035 – 168,035 Changes in outstanding shares during the periods ended April 30, 2021 and Total financial assets 43,278,752 168,035 3,246,226 46,693,012 October 31, 2020 are summarized as follows: Financial liabilities Number of Shares Forward currency contracts – 236,856 – 236,856 ETF Series A Series B Series F Series X Shares Shares Shares Shares Shares Total financial liabilities – 236,856 – 236,856 Outstanding, October 31, 2019 100,000 1,623,270 325,246 274,643 3,175 Total financial assets and liabilities 43,278,752 (68,821) 3,246,226 46,456,156 Issued – 1,972 52,740 240,975 – The following table reconciles the Fund’s Level 3 fair value measurements for the Redeemed – (447,004) (66,858) (74,100) (3,175) periods ended April 30, 2021 and October 31, 2020: Outstanding, October 31, 2020 100,000 1,178,238 311,128 441,518 – Issued – 669 19,570 492,424 – 2021 2020 ($) ($) Redeemed – (89,138) (29,901) (130,636) – Beginning of period 3,246,226 3,385,189 Outstanding, April 30, 2021 100,000 1,089,769 300,797 803,306 – Acquisitions 4,538,120 2,195,655 Dispositions (3,317,812) (1,898,234) C) MANAGEMENT FEES, SERVICE FEES AND OTHER Net transfers – 40,000 EXPENSES (NOTE 5) Net change in realized 1,698 254,634 Annual Management Fee Net change in unrealized (86,858) (731,018) (% of Net Asset Value of each share) End of period 4,381,374 3,246,226 Series Management Fee ETF Shares 1.00% Series A Shares* 2.00% E) FINANCIAL RISKS (NOTE 11) Series B Shares* 2.00% Market price risk Series F Shares 1.00% If equity securities prices had increased or decreased by 5% as at April 30, * Includes a service fee at an annual rate of 1.% of the daily average Net Asset Value 2021,of the withSeries all otherA shares, variables Series heldB constant, the Fund’s net assets would have shares and Series X shares. increased or decreased, respectively, by approximately $3.1 million (October 31, 2020 – $2.3 million). In practice, actual results may differ from this sensitivity analysis and the difference could be material. D) FAIR VALUE INVESTMENTS (NOTE 10) Interest rate risk The following is a summary of the inputs used as of April 30, 2021 in valuing the As at April 30, 2021 and October 31, 2020 the Fund had exposure to debt Fund’s financial assets and financial liabilities carried at fair value: instruments by maturity as follows: Level 1 Level 2 Level 3 Total ($) ($) ($) ($) April 30, 2021 October 31, 2020 Financial assets Maturity $ % $ % Equities 58,121,866 – 3,774,087 61,895,953 Less than 1 year 307,287 51.00 – – Fixed income – – 607,287 607,287 1 to 3 years 300,000 49.00 300,000 100.0 Funds 498,914 – – 498,914 Total exposure 607,287 100.00 300,000 100.0 Warrants – 398,202 – 398,202 Forward currency contracts – 210,781 – 210,781 Total financial assets 58,620,780 608,983 4,381,374 63,611,137 Total financial assets and liabilities 58,620,780 608,983 4,381,374 63,611,137

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 14 PURPOSE GLOBAL INNOVATORS FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE GLOBAL INNOVATORS FUND (unaudited) (continued)

Currency risk F) INTEREST IN UNDERLYING FUNDS The table below summarizes the Fund’s direct exposure to foreign currencies as The Fund invests in redeemable shares of other investment fund (“underlying at April 30, 2021, including the fair value of currency contracts that are used to funds”) to gain exposure to the investment objectives and strategies of the hedge the foreign currency risk: underlying funds. One underlying fund is generally financed through the capital invested by the Fund, along with other investors, which entitles shareholders Fair Value Forward Net Excluding Forward Currency Currency to a proportionate share of the underlying fund’s net assets. The Fund does Currency Contracts Contracts Exposure % of not provide additional financial or other support to the underlying funds. Currency ($) ($) ($) Net Assets All underlying funds were established in and carry out their operations in US Dollar 54,118,218 (14,395,313) 39,722,905 61.3 Canada. The Fund’s interests in underlying funds are reported at fair value in Net exposure 54,118,218 (14,395,313) 39,722,905 61.3 “Investments” in its Statements of Financial Position and in its Schedule of Investments, which represents the Fund’s maximum exposure to financial loss. The table below summarizes the Fund’s direct exposure to foreign currencies as April 30, 2021 October 31, 2020 at October 31, 2020, including the fair value of currency contracts that are used % of Ownership % of Ownership to hedge the foreign currency risk: Underlying Funds Net Assets Interest % Net Assets Interest % Fair Value Forward Net Purpose High Interest Savings ETF 0.7 0.0 0.1 0.0 Excluding Forward Currency Currency Purpose US Cash Fund 0.0 0.0 0.1 0.0 Currency Contracts Contracts Exposure % of Currency ($) ($) ($) Net Assets British Pound 258,900 – 258,900 0.5 US Dollar 41,195,902 (15,602,883) 25,593,020 53.1 Net exposure 41,454,802 (15,602,883) 25,851,920 54

If the Canadian dollar weakened or strengthened by 5% as at April 30, 2021 in relation to the US dollar, with all other variables held constant, the Fund’s net assets would have increased or decreased, respectively, by approximately $2.0 million (October 31, 2020 – $1.3 million). In practice, actual results may differ from this sensitivity analysis and the difference could be material. Credit risk The Fund’s main exposure to credit risk is: (a) their trading of listed securities – the risk of default is considered minimal as all transactions are settled and paid for upon delivery using approved brokers and (b) the Fund may enter into derivative contracts to hedge their exposure to foreign currencies. The unrealized gain (loss) on outstanding contracts with counterparties represents the maximum credit exposure. These contracts are carried out with counterparties with a credit rating of at least “A-”. The exposure to credit risk on these contracts is considered minimal as there are few contracts outstanding at any one time and the transactions are settled and paid for upon delivery. The Fund may engage in securities lending transactions. The credit risk related to securities lending transactions is limited by the fact that the value of the securities held as collateral by the Fund in connection with these transactions is at least 105% of the fair value of the securities loaned. The collateral and loaned securities are marked to market on each business day. Further information regarding the collateral and securities on loan can be found in the footnotes to the Statements of Comprehensive Income. As at April 30, 2021 and October 31, 2020 the Fund invested in debt instruments with the following Standard & Poor’s credit ratings: April 30, 2020 October 31, 2020 Net Exposure % of Net Exposure % of Bond Ratings ($) Net Assets ($) Net Assets Unrated 607,287 0.9 300,000 0.6 Total 607,287 0.9 300,000 0.6 Portfolio concentration risk The Manager manages the risk through diversification and a thorough understanding of each investment in the portfolio.

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 15 PURPOSE SPECIAL OPPORTUNITIES FUND

INTERIM FINANCIAL STATEMENTS (unaudited)

STATEMENTS OF FINANCIAL POSITION (unaudited) As at: April 30, October 31, 2021 2020 ($) ($) Assets Investments: Non-derivative financial assets 27,518,367 21,017,229 Cash and cash equivalents 570,509 – Receivables: Dividends 2,291 2,879 Capital shares sold 60,865 246 Investment securities sold 484,944 803,341 Prepaid expenses – 13,861 Derivative assets: Warrants 346,295 166,568 Total assets 28,983,271 22,004,124 Liabilities Investments sold short – 265,050 Bank overdraft – 717,714 Payables: Management fees (note 5) 79,753 58,157 Independent review committee fees (note 5) 10,777 9,484 Other accrued liabilities (note 5) 67,415 100,030 Investment securities purchased 959,124 – Capital shares redeemed 90,349 17,119 Total liabilities 1,207,418 1,167,554 Net assets attributable to holders of redeemable shares 27,775,853 20,836,570 Net assets attributable to holders of redeemable shares per series Series A 11,733,228 8,841,284 Series B 6,262,647 4,600,625 Series F 3,716,020 2,621,133 Series X 1,110,450 810,591 Series Y 4,953,508 3,962,937 Total 27,775,853 20,836,570 Number of shares outstanding (note 4) Series A 4,164,932 4,863,298 Series B 2,223,578 2,530,960 Series F 1,131,563 1,244,335 Series X 366,040 415,566 Series Y 1,613,675 2,011,400 Net assets attributable to holders of redeemable shares per share Series A 2.82 1.82 Series B 2.82 1.82 Series F 3.28 2.11 Series X 3.03 1.95 Series Y 3.07 1.97 The accompanying notes are an integral part of the financial statements.

Approved on behalf of the Board of Directors of Purpose Mutual Funds Limited.

Som Seif Douglas Hall Director Director June 29, 2021

2021 INTERIM REPORT 16 PURPOSE SPECIAL OPPORTUNITIES FUND

STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Income Increase (decrease) in net assets attributable to holders of Net gains (losses) on investments and derivatives: redeemable shares per series (note 8) Dividend income 97,942 180,516 Series A 4,607,530 (3,230,203) Net realized gain (loss) on sale of non-derivative financial assets 2,121,571 (38,882,277) Series B 2,459,804 (1,718,726) Net change in unrealized appreciation (depreciation) on Series F 1,401,394 (934,625) non‑derivative financial assets 9,019,325 31,598,807 Series X 430,331 (296,245) Net change in unrealized appreciation (depreciation) Series Y 2,129,622 (1,410,489) on warrants 346,445 125,432 Total 11,028,681 (7,590,288) Net gains (losses) on investments and derivatives 11,585,283 (6,977,522) Average number of shares outstanding for the period per series Securities lending income 1, 2 29,974 58,383 (note 8) Foreign exchange gain (loss) on cash (25,379) 4,294 Series A 4,473,425 5,991,763 Total revenue 11,589,878 (6,914,845) Series B 2,397,264 3,134,820 Expenses Series F 1,163,491 1,500,700 Management fees (note 5) 326,975 339,668 Series X 388,169 516,701 Transaction costs (note 9) 147,558 155,684 Series Y 1,855,599 2,407,898 Custodian and fund accounting fees 39,517 136,727 Increase (decrease) in net assets attributable to holders of Audit fees 13,628 1,500 redeemable shares per share (note 8) Legal fees 12,790 1,958 Series A 1.03 (0.54) Interest and bank charges 6,274 18 Series B 1.03 (0.55) Stock borrow fees 4,907 – Series F 1.20 (0.62) Unitholder reporting 2,881 361 Series X 1.11 (0.57) Withholding taxes 1,694 – Series Y 1.15 (0.59) Independent review committee fees (note 5) 1,294 2,968 Operating fees 1,040 18,153 (1) Securities lending: The value of securities loaned and collateral received from securities lending as at April 30 is as follows: Recordkeeping fees – 18,406 April 30, 2021 April 30, 2020 Other expenses (note 5) 2,639 – Value of securities loaned 2,296,288 2,101,166 Total expenses 561,197 675,443 Value of collateral received 2,437,447 2,367,009 Increase (decrease) in net assets attributable to holders of redeemable shares 11,028,681 (7,590,288) (2) Securities lending Income The table below shows a reconciliation of the gross amount generated from the securities lending transactions of the Fund to the revenue from the securities lending disclosed in the Statement of Comprehensive Income. April 30, 2021 April 30, 2020 $ % $ % Gross securities lending income 53,837 100.0 98,113 100.0 Withholding taxes (3,885) (7.2) (812) (0.8) Agent fees (19,978) (37.1) (38,918) (39.7) Securities lending income 29,974 55.7 58,383 59.5 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 17 PURPOSE SPECIAL OPPORTUNITIES FUND

STATEMENTS OF CHANGES IN FINANCIAL POSITION (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Series A Series X Net assets attributable to holders of redeemable shares at beginning of period 8,841,284 12,784,106 Net assets attributable to holders of redeemable shares at beginning of period 810,591 1,173,138 Increase (decrease) in net assets attributable to holders of redeemable shares 4,607,530 (3,230,203) Increase (decrease) in net assets attributable to holders of redeemable shares 430,331 (296,245) Redeemable share transactions Redeemable share transactions Proceeds from issuance of redeemable shares 22,460 38,934 Exchange of redeemable shares (37,550) (9,568) Exchange of redeemable shares (173,650) (41,038) Payments for redemption of redeemable shares (92,922) (178,745) Payments for redemption of redeemable shares (1,564,396) (1,890,390) Net increase (decrease) from redeemable share transactions (130,472) (188,313) Net increase (decrease) from redeemable share transactions (1,715,586) (1,892,494) Net increase (decrease) in net assets attributable to holders of Net increase (decrease) in net assets attributable to holders of redeemable shares 299,859 (484,558) redeemable shares 2,891,944 (5,122,697) Net assets attributable to holders of redeemable shares at end of period 1,110,450 688,580 Net assets attributable to holders of redeemable shares at end of period 11,733,228 7,661,409 Series Y Series B Net assets attributable to holders of redeemable shares at beginning of period 3,962,937 5,422,896 Net assets attributable to holders of redeemable shares at beginning of period 4,600,625 6,651,112 Increase (decrease) in net assets attributable to holders of redeemable shares 2,129,622 (1,410,489) Increase (decrease) in net assets attributable to holders of redeemable shares 2,459,804 (1,718,726) Redeemable share transactions Redeemable share transactions Exchange of redeemable shares (942) – Proceeds from issuance of redeemable shares 188,587 166,117 Payments for redemption of redeemable shares (1,138,109) (521,742) Exchange of redeemable shares 23,637 20,980 Net increase (decrease) from redeemable share transactions (1,139,051) (521,742) Payments for redemption of redeemable shares (1,010,006) (1,037,042) Net increase (decrease) in net assets attributable to holders of Net increase (decrease) from redeemable share transactions (797,782) (849,945) redeemable shares 990,571 (1,932,231) Net increase (decrease) in net assets attributable to holders of Net assets attributable to holders of redeemable shares at end of period 4,953,508 3,490,665 redeemable shares 1,662,022 (2,568,671) The accompanying notes are an integral part of the financial statements. Net assets attributable to holders of redeemable shares at end of period 6,262,647 4,082,441

Series F Net assets attributable to holders of redeemable shares at beginning of period 2,621,133 3,716,158 Increase (decrease) in net assets attributable to holders of redeemable shares 1,401,394 (934,625) Redeemable share transactions Proceeds from issuance of redeemable shares 311,220 156,969 Exchange of redeemable shares 79,809 7,560 Payments for redemption of redeemable shares (697,536) (854,169) Net increase (decrease) from redeemable share transactions (306,507) (689,640) Net increase (decrease) in net assets attributable to holders of redeemable shares 1,094,887 (1,624,265) Net assets attributable to holders of redeemable shares at end of period 3,716,020 2,091,893

2021 INTERIM REPORT 18 PURPOSE SPECIAL OPPORTUNITIES FUND

STATEMENTS OF CASH FLOWS (unaudited) For the periods ended: April 30, April 30, 2021 2020 ($) ($)

Cash Flows from Operating Activities Increase (decrease) in net assets attributable to holders of redeemable shares 11,028,681 (7,590,288) Adjustments for: Foreign exchange loss (gain) on cash 43 (1,050) Purchase of investments (43,515,113) (22,086,901) Proceeds from sale of investments 49,186,502 25,703,098 Net realized loss (gain) on sale of investments (2,121,571) 38,882,277 Net change in unrealized depreciation (appreciation) in value of investments (9,019,325) (31,598,807) Net change in unrealized depreciation (appreciation) on warrants (346,445) (125,432) Net change in non-cash working capital balances 4,723 80,352 Transaction costs (note 9) 147,558 154,865 5,365,053 3,418,114

Cash Flows from Financing Activities Proceeds from issuance of shares 461,648 361,720 Share exchanges (108,696) (22,066) Payments for shares redeemed (4,429,739) (4,505,356) (4,076,787) (4,165,702)

Foreign exchange gain (loss) on cash (43) 1,050 Net increase (decrease) in cash and cash equivalents 1,288,266 (747,588) Cash and cash equivalents, at beginning of period (717,714) 803,250 Cash and cash equivalents, at end of period 570,509 56,712 Dividends received (paid), net of withholding taxes 96,836 203,012 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 19 PURPOSE SPECIAL OPPORTUNITIES FUND

SCHEDULE OF INVESTMENTS (unaudited) As at April 30, 2021 Number of Number of Shares/Units/ Average Cost Fair Value Shares/Units/ Average Cost Fair Value Par Value ($) ($) Par Value ($) ($) Long Positions – 99.07% Industrials – 1.45% Equities – 96.22% Eguana Technologies Inc. 446,200 178,480 173,795 Communication Services – 1.37% *Maverick Logistica SA 5,000 – – Snap Inc. 5,000 372,395 379,930 Parkit Enterprise Inc. 50,000 34,585 79,000 Parkit Enterprise Inc., Restricted Share 100,000 95,000 150,100 Consumer Discretionary – 4.76% 308,065 402,895 Advance Auto Parts Inc. 900 174,720 221,424 Information Technology – 7.27% *Cooltech Corp. 136,712 500,520 16,804 ASML Holding NV, ADR 500 388,810 398,306 DraftKings Inc. 10,000 727,794 696,436 Microsoft Corp. 1,420 443,363 440,153 Jamieson Wellness Inc. 10,000 366,654 385,800 Okta Inc. 1,000 252,137 331,502 1,769,688 1,320,464 Quarterhill Inc. 22,030 52,652 56,617 Energy – 40.73% Shopify Inc., Class 'A'. 250 351,303 362,725 ARC Resources Ltd. 52,700 403,980 407,371 Western Digital Corp. 5,000 414,922 434,074 Canadian Natural Resources Ltd. 17,500 671,326 652,925 1,903,187 2,023,377 Cuda Oil & Gas Inc. 75,000 99,777 5,625 Materials – 18.29% *Lilis Energy Inc. 412,288 516,231 – AirBoss of America Corp. 20,000 652,233 820,000 *Manitok Energy Inc. 27,361 – – Altius Renewable Royalties Corp. 11,420 125,620 114,771 MEG Energy Corp. 25,000 180,297 169,750 Artemis Gold Inc. 50,000 266,000 290,500 NexGen Energy Ltd. 53,890 242,505 250,049 Barrick Gold Corp. 15,000 411,000 392,850 Parex Resources Inc. 9,938 83,678 230,065 First Quantum Minerals Ltd. 10,000 274,353 283,300 Petro Rio SA 354,100 3,090,696 7,307,383 Fortuna Silver Mines Inc. 25,000 200,000 185,000 Scorpio Tankers Inc. 10,000 329,551 222,968 MAG Silver Corp. 5,000 114,686 105,800 TeraGo Inc. 60,000 399,999 338,400 Montage Gold Corp. 266,960 294,156 226,916 Topaz Energy Corp. 39,230 525,590 568,443 New Gold Inc. 75,000 162,435 151,500 Tourmaline Oil Corp. 16,300 265,382 432,276 Nobel29 Resources Corp. 50,000 20,000 37,000 Trican Well Service Ltd. 174,525 377,551 368,248 Nutrien Ltd. 7,500 510,307 508,875 Whitecap Resources Inc. 66,713 574,437 358,916 Omai Gold Mines Corp. 517,160 109,250 87,917 7,761,000 11,312,419 Prime Mining Corp. 69,110 220,105 208,989 Financials – 13.94% Roxgold Inc. 90,000 165,621 183,600 BGP Acquisition Corp. 49,500 424,446 411,704 Solaris Resources Inc. 107,538 – 1,070,003 Brookfield Asset Management Inc., Class 'A' 10,000 503,900 560,300 Titan Mining Corp. 750,000 964,923 412,500 Charles Schwab Corp. (The) 3,251 154,482 281,316 4,490,689 5,079,521 DRI Healthcare Trust 34,280 435,322 331,394 Total Equities – 96.22% 22,019,715 26,727,600 ECN Capital Corp. 42,620 218,657 351,189 Exchange Traded Funds – 2.85% Evercore Inc. 4,500 619,611 775,084 iShares US Home Construction ETF 2,500 191,625 224,996 Intact Financial Corp. 2,500 357,600 408,450 Purpose High Interest Savings ETF 11,315 565,989 565,771 Trisura Group Ltd. 5,760 430,587 755,078 757,614 790,767 3,144,605 3,874,515 Total Exchange Traded Funds – 2.85% 757,614 790,767 Health Care – 8.41% Total Long Positions – 99.07% 22,777,329 27,518,367 Andlauer Healthcare Group Inc. 10,000 381,593 374,100 Transaction Costs (note 9) (29,674) – Curaleaf Holdings Inc. 25,000 320,750 433,750 Total Investments – 99.07% 22,747,655 27,518,367 Dicerna Pharmaceuticals Inc. 5,320 155,791 203,954 Warrants (Schedule 1) – 1.25% 346,295 HLS Therapeutics Inc. 20,000 270,600 389,000 Cash and Cash Equivalents – 2.05% 570,509 Intra-Cellular Therapies Inc. 4,500 154,856 190,438 Other Assets, Less Liabilities – (2.37%) (659,318) Ionis Pharmaceuticals Inc. 2,330 165,469 122,633 Net Assets – 100.00% 27,775,853 Medicenna Therapeutics Corp. 20,130 96,020 89,578 *Private securities classified as Level 3. MJardin Group, Inc. 370,355 37,499 27,777 The accompanying notes are an integral part of the financial statements. Spectral Medical Inc. 136,377 81,826 72,280 Stem Inc. 4,000 206,146 124,833 Verano Holdings Corp. 11,000 316,857 243,540 Zymeworks Inc. 1,566 82,679 62,596 2,270,086 2,334,479

2021 INTERIM REPORT 20 PURPOSE SPECIAL OPPORTUNITIES FUND

SCHEDULE OF INVESTMENTS (unaudited) (continued) As at April 30, 2021

SCHEDULE 1 – WARRANTS For the period ended April 30, 2021 Strike Price Shares Cost Fair Value Security Expiry Date ($) Currency or units ($) ($) Carebook Technologies Inc., Warrants, 2022/10/01 October 1, 2022 3.13 CAD 20,000 – 11,348 CLS Holdings Inc., Warrants, 2022/01/08 January 8, 2022 0.65 CAD 3,666,663 – 172,700 Harvest Health & Recreation Inc., Warrant, 2023/04/28 April 28, 2023 3.05 CAD 42,687 – 70,776 Marathon Gold Corp., Warrants, 2021/05/26 May 26, 2021 1.90 CAD 46,262 – 27,389 Osisko Development Corp., Warrants, 2022/05/25 May 25, 2022 10.00 CAD 13,400 – 13,064 Osisko Mining Inc., Warrants, 2021/12/23 December 23, 2021 5.25 CAD 2,955 – 209 Prime Mining Corp., Warrants, 2024/04/27 April 27, 2024 5.00 CAD 9,555 – 13,124 Spectral Medical Inc., Warrants, 2022/06/17 June 17, 2022 0.75 CAD 68,188 – 5,462 Trevali Mining Corp. 2022/06/02 June 2, 2022 0.23 CAD 259,255 – 16,852 Troilus Gold Corp., Warrants, 2022/06/23 June 23, 2022 1.50 CAD 112,500 – 15,372 346,295 *Private securities classified as Level 3.

2021 INTERIM REPORT 21 PURPOSE SPECIAL OPPORTUNITIES FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE SPECIAL OPPORTUNITIES FUND (unaudited)

A) INVESTMENT OBJECTIVES (NOTE 2) The following is a summary of the inputs used as of October 31, 2020 in valuing The Purpose Special Opportunities Fund seeks to provide shareholders capital the Fund’s financial assets and financial liabilities carried at fair value: appreciation through the investment in equity securities of companies whose Level 1 Level 2 Level 3 Total product, service or management team the Manager believes can realize value and ($) ($) ($) ($) growth. The Manager may rely on “top down” fundamental research to identify Financial assets equity securities of companies in a particular industry or sector, but portfolio Equities 20,177,255 – 835,225 21,012,479 diversification will be driven primarily from the Fund’s investments, as opposed to targeting sector weights. Exchange traded funds 4,750 – – 4,750 Warrants – 166,568 – 166,568 B) REDEEMABLE PARTICIPATING SHARES (NOTE 4) Total financial assets 20,182,005 166,568 835,225 21,183,797 Changes in outstanding shares during the periods ended April 30, 2021 and October 31, 2020 are summarized as follows: Financial liabilities Number of Shares Equities 265,050 – – 265,050 Series A Series B Series F Series X Series Y Total financial liabilities 265,050 – – 265,050 Shares Shares Shares Shares Shares Total financial assets and liabilities 19,916,955 166,568 835,225 20,918,747 Outstanding, October 31, 2019 6,472,880 3,367,082 1,641,982 556,299 2,539,528 The following table reconciles the Fund’s Level 3 fair value measurements for the Issued 46,504 192,231 139,867 – – periods ended April 30, 2021 and October 31, 2020: Redeemed (1,656,086) (1,028,353) (537,514) (140,733) (528,128) Outstanding, October 31, 2020 4,863,298 2,530,960 1,244,335 415,566 2,011,400 2021 2020 Issued 20,470 106,103 129,415 573 5,033 ($) ($) Redeemed (718,836) (413,485) (242,186) (50,099) (402,758) Beginning of period 835,225 37,871 Outstanding, April 30, 2021 4,164,932 2,223,578 1,131,564 366,040 1,613,675 Acquisitions – 301,003 Dispositions (827,940) (35,232) Net transfers 516,231 – C) MANAGEMENT FEES, SERVICE FEES AND OTHER Net change in realized – 35,232 EXPENSES (NOTE 5) Net change in unrealized (506,713) 496,351 Annual Management Fee (% of Net Asset Value of each share) End of period 16,804 835,225 Series Management Fee Series A Shares* 2.50% E) FINANCIAL RISKS (NOTE 11) Series B Shares* 2.50% Market price risk Series F Shares 1.50% If equity securities prices had increased or decreased by 5% as at April 30, Series X Shares* 2.00% 2021, with all other variables held constant, the Fund’s net assets would have increased or decreased, respectively, by approximately $1.3 million (October 31, Series Y Shares* 2.00% 2020 – $1.0 million). In practice, actual results may differ from this sensitivity * Includes a service fee at an annual rate of 1.00% of the daily average Net Asset Value of the Series A shares and Series B shares and 0.50% of the Series X shares and Series Y shares. analysis and the difference could be material. Interest rate risk D) FAIR VALUE INVESTMENTS (NOTE 10) As at April 30, 2021 and October 31, 2020, the Fund had no significant exposure The following is a summary of the inputs used as of April 30, 2021 in valuing the to debt instruments. Fund’s financial assets and financial liabilities carried at fair value: Currency risk Level 1 Level 2 Level 3 Total The table below summarizes the Fund’s direct exposure to foreign currencies as ($) ($) ($) ($) at April 30, 2021, including the fair value of currency contracts that are used to Financial assets hedge the foreign currency risk: Equities 26,710,796 – 16,804 26,727,600 Fair Value Forward Net Exchange traded funds 790,767 – – 790,767 Excluding Forward Currency Currency Warrants – 346,295 – 346,295 Currency Contracts Contracts Exposure % of Total financial assets 27,501,563 346,295 16,804 27,864,662 Currency ($) ($) ($) Net Assets Total financial assets and liabilities 27,501,563 346,295 16,804 27,864,662 Brazilian Real 7,307,383 – 7,307,383 26.3 US Dollar 5,882,410 – 5,882,410 21.2 Net exposure 13,189,793 – 13,189,793 47.5

The table below summarizes the Fund’s direct exposure to foreign currencies as at October 31, 2020, including the fair value of currency contracts that are used to hedge the foreign currency risk: Fair Value Forward Net Excluding Forward Currency Currency Currency Contracts Contracts Exposure % of Currency ($) ($) ($) Net Assets Brazilian Real 2,561,938 – 2,561,938 12.3 US Dollar 4,004,446 – 4,004,446 19.2 Net exposure 6,566,384 – 6,566,384 31.5

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 22 PURPOSE SPECIAL OPPORTUNITIES FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE SPECIAL OPPORTUNITIES FUND (unaudited) (continued)

If the Canadian dollar weakened or strengthened by 5% as at April 30, 2021, with all other variables held constant, the Fund’s net assets would have increased or decreased, respectively, by approximately $0.7 million (October 31, 2020 – $0.3 million). In practice, actual results may differ from this sensitivity analysis and the difference could be material. Credit risk As at April 30, 2021 and October 31, 2020 the Fund was primarily holding ETF units of Purpose High Interest Saving Fund which primarily holds cash and term deposits with Canadian Financial Institutions, the credit quality of which is disclosed in the Fund’s Management Report of Fund Performance. Portfolio concentration risk The Manager manages the risk through diversification and a thorough understanding of each investment in the portfolio.

F) INTEREST IN UNDERLYING FUNDS The Fund invests in redeemable shares of other investment fund (“underlying funds”) to gain exposure to the investment objectives and strategies of the underlying funds. One underlying fund is generally financed through the capital invested by the Fund, along with other investors, which entitles shareholders to a proportionate share of the underlying fund’s net assets. The Fund does not provide additional financial or other support to the underlying funds. All underlying funds were established in and carry out their operations in Canada. The Fund’s interests in underlying funds are reported at fair value in “Investments” in its Statements of Financial Position and in its Schedule of Investments, which represents the Fund’s maximum exposure to financial loss. April 30, 2021 October 31, 2020 % of Ownership % of Ownership Underlying Funds Net Assets Interest % Net Assets Interest % iShares US Home Construction ETF 0.8 0.0 – – Purpose High Interest Savings ETF 2.0 0.0 0.0 0.0

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 23 PURPOSE ENHANCED PREMIUM YIELD FUND

INTERIM FINANCIAL STATEMENTS (unaudited)

STATEMENTS OF FINANCIAL POSITION (unaudited) As at: April 30, October 31, April 30, October 31, 2021 2020 2021 2020 ($) ($) ($) ($) Assets Net assets attributable to holders of redeemable shares per series Investments: ETF Shares 3,960,099 2,843,715 Non-derivative financial assets 31,301,743 32,363,912 Series A 1,872,898 2,367,528 Cash and cash equivalents 4,259,443 4,246,903 Series B 4,072,888 4,435,515 Receivables: Series F 19,168,720 20,302,459 Dividends 14,595 20,623 Series I 1,572,622 1,495,258 Refundable tax 489 530 Series UB 96,663 100,813 Derivative assets: Series UF 798,787 858,940 Unrealized gain on forward currency contracts 39,923 – Series MC 3,455,136 3,755,392 Total assets 35,616,193 36,631,968 Series MU 17,073 15,765 Liabilities Total 35,014,886 36,175,385 Other accrued liabilities (note 5) 170,631 103,410 Number of shares outstanding (note 4) Payables: ETF Shares 200,000 150,000 Management fees (note 5) 73,736 79,096 Series A 411,559 540,999 Independent review committee fees (note 5) 23,862 21,653 Series B 899,483 1,018,747 Dividends 24,421 24,421 Series F 3,957,887 4,378,213 Capital shares redeemed 28,943 4,891 Series I 305,161 303,534 Investment securities purchased – 7,995 Series UB 14,417 15,453 Derivative liabilities: Series UF 117,935 130,940 Options written at fair value 279,714 157,604 Series MC 1,271,237 1,443,122 Unrealized loss on forward currency contracts – 57,513 Series MU 12,440 11,858 Total liabilities 601,307 456,583 Net assets attributable to holders of redeemable shares per share Net assets attributable to holders of redeemable shares 35,014,886 36,175,385 ETF Shares 19.80 18.96 Series A 4.55 4.38 Series B 4.53 4.35 Series F 4.84 4.64 Series I 5.15 4.93 Series UB 6.70 6.52 Series UF 6.77 6.56 Series MC 2.72 2.60 Series MU 1.37 1.33 The accompanying notes are an integral part of the financial statements.

Approved on behalf of the Board of Directors of Purpose Mutual Funds Limited.

Som Seif Douglas Hall Director Director June 29, 2021

2021 INTERIM REPORT 24 PURPOSE ENHANCED PREMIUM YIELD FUND

STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Income Increase (decrease) in net assets attributable to holders of redeemable shares Net gains (losses) on investments and derivatives: per series (note 8) Dividend income 116,787 347,455 ETF Shares 293,171 (309,018) Interest income for distribution purposes – 7,669 Series A 169,120 (148,830) Net realized gain (loss) on sale of non-derivative financial assets 338,671 (2,497,813) Series B 330,510 (263,756) Net realized gain (loss) on currency forward contracts 290,529 (39,889) Series F 1,561,338 (1,169) Net realized gain (loss) on options 2,036,911 1,480,689 Series I 124,953 (66,269) Net change in unrealized appreciation (depreciation) on non-derivative Series UB 7,441 (5,142) financial assets 285,808 (490,913) Series UF 68,635 (51,694) Net change in unrealized appreciation (depreciation) on currency Series MC 292,113 (186,523) forward contracts 97,436 49,197 Series MU 1,308 (687) Net change in unrealized appreciation (depreciation) on options 314,091 74,016 Total 2,848,589 (1,033,088) Net gains (losses) on investments and derivatives 3,480,233 (1,069,589) Average number of shares outstanding for the period per series (note 8) Foreign exchange gain (loss) on cash (349,549) 194,966 ETF Shares 176,796 112,088 Total revenue 3,130,684 (874,623) Series A 490,558 730,636 Expenses Series B 971,055 1,043,220 Management fees (note 5) 256,886 200,755 Series F 4,073,601 1,831,609 Custodian and fund accounting fees 38,552 1,363 Series I 304,255 301,025 Legal fees 17,442 2,082 Series UB 14,443 14,991 Transaction costs (note 9) 17,195 17,470 Series UF 128,436 133,461 Audit fees 10,917 793 Series MC 1,364,153 1,636,575 Withholding taxes (note 7) 6,691 9,098 Series MU 12,117 10,937 Unitholder reporting 5,853 – Increase (decrease) in net assets attributable to holders of redeemable shares Independent review committee fees (note 5) 2,209 958 per share (note 8) Interest and bank charges 755 – ETF Shares 1.66 (2.76) Other expenses (note 5) 30,318 4,281 Series A 0.34 (0.20) Total expenses 386,818 235,602 Series B 0.34 (0.25) Expenses waived/absorbed by the Manager (104,723) (77,137) Series F 0.38 – Net expenses 282,095 158,465 Series I 0.41 (0.22) Increase (decrease) in net assets attributable to holders of redeemable shares 2,848,589 (1,033,088) Series UB 0.52 (0.34) Series UF 0.53 (0.39) Series MC 0.21 (0.11) Series MU 0.11 (0.06) The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 25 PURPOSE ENHANCED PREMIUM YIELD FUND

STATEMENTS OF CHANGES IN FINANCIAL POSITION (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) ETF Shares Series F Net assets attributable to holders of redeemable shares at beginning of period 2,843,715 1,504,479 Net assets attributable to holders of redeemable shares at beginning of period 20,302,459 5,272,782 Increase (decrease) in net assets attributable to holders of redeemable shares 293,171 (309,018) Increase (decrease) in net assets attributable to holders of redeemable shares 1,561,338 (1,169) Redeemable share transactions Redeemable share transactions Proceeds from issuance of redeemable shares 2,911,608 3,719,180 Proceeds from issuance of redeemable shares 796,554 15,533,217 Payments for redemption of redeemable shares (1,967,342) (2,068,535) Exchange of redeemable shares 57,168 58,373 Net increase (decrease) from redeemable share transactions 944,266 1,650,645 Payments for redemption of redeemable shares (3,464,387) (1,433,453) Distributions paid or payable to shareholders of redeemable shares Reinvestment of distributions 613,871 251,307 Return of capital (121,053) (76,765) Net increase (decrease) from redeemable share transactions (1,996,794) 14,409,444 Total distributions to holders of redeemable shares (121,053) (76,765) Distributions paid or payable to shareholders of redeemable shares Net increase (decrease) in net assets attributable to holders of Return of capital (698,283) (341,221) redeemable shares 1,116,384 1,264,862 Total distributions to holders of redeemable shares (698,283) (341,221) Net assets attributable to holders of redeemable shares at end of period 3,960,099 2,769,341 Net increase (decrease) in net assets attributable to holders of redeemable shares (1,133,739) 14,067,054 Series A Net assets attributable to holders of redeemable shares at end of period 19,168,720 19,339,836 Net assets attributable to holders of redeemable shares at beginning of period 2,367,528 3,963,472 Increase (decrease) in net assets attributable to holders of redeemable shares 169,120 (148,830) Series I Redeemable share transactions Net assets attributable to holders of redeemable shares at beginning of period 1,495,258 1,559,836 Proceeds from issuance of redeemable shares – 21,200 Increase (decrease) in net assets attributable to holders of redeemable shares 124,953 (66,269) Exchange of redeemable shares (8,246) 9,684 Redeemable share transactions Payments for redemption of redeemable shares (612,175) (926,098) Reinvestment of distributions 8,265 7,674 Reinvestment of distributions 36,347 64,394 Net increase (decrease) from redeemable share transactions 8,265 7,674 Net increase (decrease) from redeemable share transactions (584,074) (830,820) Distributions paid or payable to shareholders of redeemable shares Distributions paid or payable to shareholders of redeemable shares Return of capital (55,854) (55,262) Return of capital (79,676) (118,905) Total distributions to holders of redeemable shares (55,854) (55,262) Total distributions to holders of redeemable shares (79,676) (118,905) Net increase (decrease) in net assets attributable to holders of Net increase (decrease) in net assets attributable to holders of redeemable shares 77,364 (113,857) redeemable shares (494,630) (1,098,555) Net assets attributable to holders of redeemable shares at end of period 1,572,622 1,445,979 Net assets attributable to holders of redeemable shares at end of period 1,872,898 2,864,917 Series UB Series B Net assets attributable to holders of redeemable shares at beginning of period 100,813 106,464 Net assets attributable to holders of redeemable shares at beginning of period 4,435,515 4,935,040 Increase (decrease) in net assets attributable to holders of redeemable shares 7,441 (5,142) Increase (decrease) in net assets attributable to holders of redeemable shares 330,510 (263,756) Redeemable share transactions Redeemable share transactions Payments for redemption of redeemable shares (8,900) – Proceeds from issuance of redeemable shares 109,353 817,562 Reinvestment of distributions 1,990 1,914 Exchange of redeemable shares 8,246 (80,925) Net increase (decrease) from redeemable share transactions (6,910) 1,914 Payments for redemption of redeemable shares (766,502) (967,026) Distributions paid or payable to shareholders of redeemable shares Reinvestment of distributions 112,551 117,440 Return of capital (4,681) (5,157) Net increase (decrease) from redeemable share transactions (536,352) (112,949) Total distributions to holders of redeemable shares (4,681) (5,157) Distributions paid or payable to shareholders of redeemable shares Net increase (decrease) in net assets attributable to holders of Return of capital (156,785) (171,118) redeemable shares (4,150) (8,385) Total distributions to holders of redeemable shares (156,785) (171,118) Net assets attributable to holders of redeemable shares at end of period 96,663 98,079 Net increase (decrease) in net assets attributable to holders of redeemable shares (362,627) (547,823) Net assets attributable to holders of redeemable shares at end of period 4,072,888 4,387,217

2021 INTERIM REPORT 26 PURPOSE ENHANCED PREMIUM YIELD FUND

STATEMENTS OF CHANGES IN FINANCIAL STATEMENTS OF CASH FLOWS (unaudited) POSITION (unaudited) (continued) For the periods ended: For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Series UF Cash Flows from Operating Activities Net assets attributable to holders of redeemable shares at beginning of period 858,940 769,668 Increase (decrease) in net assets attributable to holders of redeemable shares 2,848,589 (1,033,088) Increase (decrease) in net assets attributable to holders of redeemable shares 68,635 (51,694) Adjustments for: Redeemable share transactions Foreign exchange loss (gain) on cash 349,549 (2,026) Proceeds from issuance of redeemable shares 127,590 213,625 Proceeds to settlement of foreign exchange forward contracts 290,529 (39,889) Payments for redemption of redeemable shares (234,284) (57,258) Purchase of investments (12,398,801) (54,162,438) Reinvestment of distributions 19,034 21,167 Proceeds from sale of investments 16,533,372 41,907,557 Net increase (decrease) from redeemable share transactions (87,660) 177,534 Net realized loss (gain) on sale of investments (338,671) 2,497,813 Distributions paid or payable to shareholders of redeemable shares Net realized loss (gain) on options (2,036,911) (1,480,689) Return of capital (41,128) (45,816) Net realized loss (gain) on sale of forward currency contracts (290,529) 39,889 Total distributions to holders of redeemable shares (41,128) (45,816) Net change in unrealized depreciation (appreciation) in value of investments (285,808) 490,913 Net increase (decrease) in net assets attributable to holders of redeemable shares (60,153) 80,024 Net change in unrealized depreciation (appreciation) in value of forward currency contracts (97,436) (49,197) Net assets attributable to holders of redeemable shares at end of period 798,787 849,692 Net change in unrealized depreciation (appreciation) on options (314,091) (74,016) Net change in non-cash working capital balances 70,139 (31,263) Series MC Transaction costs (note 9) 17,195 16,272 Net assets attributable to holders of redeemable shares at beginning of period 3,755,392 4,847,860 4,347,126 (11,920,162) Increase (decrease) in net assets attributable to holders of redeemable shares 292,113 (186,523) Redeemable share transactions Cash Flows from Financing Activities Exchange of redeemable shares – (36,647) Proceeds from issuance of shares 3,945,103 20,911,362 Payments for redemption of redeemable shares (573,245) (740,736) Share exchanges 57,168 (49,515) Reinvestment of distributions 112,038 133,367 Payments for shares redeemed (7,602,783) (6,133,449) Net increase (decrease) from redeemable share transactions (461,207) (644,016) Distribution to holders, net of reinvestments (384,525) (362,660) Distributions paid or payable to shareholders of redeemable shares (3,985,037) 14,365,738 Return of capital (131,162) (157,489) Total distributions to holders of redeemable shares (131,162) (157,489) Foreign exchange gain (loss) on cash (349,549) 2,026 Net increase (decrease) in net assets attributable to holders of Net increase (decrease) in cash and cash equivalents 362,089 2,445,576 redeemable shares (300,256) (988,028) Cash and cash equivalents, at beginning of period 4,246,903 2,188,367 Net assets attributable to holders of redeemable shares at end of period 3,455,136 3,859,832 Cash and cash equivalents, at end of period 4,259,443 4,635,969 Interest received (paid) – 7,669 Series MU Dividends received (paid), net of withholding taxes 116,124 362,098 Net assets attributable to holders of redeemable shares at beginning of period 15,765 15,474 The accompanying notes are an integral part of the financial statements. Increase (decrease) in net assets attributable to holders of redeemable shares 1,308 (687) Redeemable share transactions Reinvestment of distributions 791 761 Net increase (decrease) from redeemable share transactions 791 761 Distributions paid or payable to shareholders of redeemable shares Return of capital (791) (761) Total distributions to holders of redeemable shares (791) (761) Net increase (decrease) in net assets attributable to holders of redeemable shares 1,308 (687) Net assets attributable to holders of redeemable shares at end of period 17,073 14,787 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 27 PURPOSE ENHANCED PREMIUM YIELD FUND

SCHEDULE 1 – FORWARD FOREIGN CURRENCY CONTRACT For the period ended April 30, 2021 S&P Credit Rating Settlement Currency Par Value Currency Par Value Forward Current Unrealized Gain Counterparty for Counterparty Date Buys ($) Sells ($) Rate Rate (Loss) ($) CIBC World Markets Inc. A-1 2021-05-28 CAD 4,710,480 USD (4,670,557) 1.239600 0.8140 39,923 39,923

SCHEDULE 2 – OPTIONS For the period ended April 30, 2021 Written Put Options USD Number of Contracts Strike Price (USD) Expiry Date Premium Received (CAD) Fair Value (CAD) Alibaba Group Holding Ltd. (4) 220.00 2021-05-22 (2,317) (1,524) Alphabet Inc. (2) 2,220.00 2021-05-22 (14,782) (2,345) Apple Inc. (9) 128.00 2021-05-22 (3,159) (1,825) Bank Of America Corp. (20) 37.00 2021-05-08 (2,042) (74) Bank Of America Corp. (135) 36.50 2021-05-22 (10,262) (1,659) Best Buy Co. Inc. (49) 114.00 2021-05-22 (15,136) (11,263) BHP Group Ltd. (10) 67.50 2021-05-22 (811) (461) Booking Holdings Inc. (1) 2,250.00 2021-05-22 (7,656) (2,212) Cabot Oil & Gas Corp. (95) 17.00 2021-05-08 (2,897) (6,656) Cabot Oil & Gas Corp. (270) 15.00 2021-05-22 (7,241) (3,319) CF Industries Holdings Inc. (45) 42.50 2021-05-08 (5,613) (691) Comcast Corp. (40) 52.00 2021-05-08 (4,839) (197) Comerica Inc. (85) 65.00 2021-05-22 (18,684) (1,567) Delta Air Lines Inc. (115) 42.00 2021-05-22 (14,834) (3,110)

2021 INTERIM REPORT 28 PURPOSE ENHANCED PREMIUM YIELD FUND

SCHEDULE OF INVESTMENTS (unaudited) (continued) As at April 30, 2021

Written Put Options USD Number of Contracts Strike Price (USD) Expiry Date Premium Received (CAD) Fair Value (CAD) Delta Air Lines Inc. (15) 45.00 2021-05-08 (2,267) (442) Eaton Corporation PLC (42) 133.00 2021-05-22 (12,146) (5,679) EOG Resources Inc. (40) 62.50 2021-05-22 (7,479) (1,524) EOG Resources Inc. (45) 67.00 2021-05-08 (12,646) (1,272) Facebook Inc. (7) 290.00 2021-05-22 (7,437) (542) Facebook Inc. (13) 275.00 2021-05-08 (10,199) (128) Home Depot Inc. (The) (19) 290.00 2021-05-08 (6,030) (304) Humana Inc. (13) 405.00 2021-05-08 (11,424) (1,478) International Paper Co. (40) 52.00 2021-05-08 (4,990) (615) International Paper Co. (65) 54.00 2021-05-22 (8,139) (1,997) JPMorgan Chase & Co. (39) 145.00 2021-05-22 (11,524) (3,356) Las Vegas Sands Corp. (100) 56.00 2021-05-22 (22,167) (5,777) Lennar Corp. (58) 97.00 2021-05-22 (17,870) (7,129) Morgan Stanley (70) 74.00 2021-05-08 (13,424) (344) Newmont Corp. (10) 57.50 2021-05-08 (1,361) (68) Phillips 66 (35) 70.00 2021-05-22 (6,590) (1,828) salesforce.com Inc. (11) 220.00 2021-05-22 (4,999) (2,542) Southern Copper Corp. (80) 70.00 2021-05-22 (25,500) (28,516) Synchrony Financial (100) 38.00 2021-05-22 (15,674) (2,151) Synchrony Financial (45) 39.00 2021-05-08 (7,310) (553) Taiwan Semiconductor Manufacturing Co. Ltd. (9) 111.00 2021-05-22 (2,625) (1,117) Target Corp. (28) 200.00 2021-05-22 (14,984) (12,734) Teladoc Health Inc. (13) 160.00 2021-05-22 (6,055) (3,340) Uber Technologies Inc. (90) 54.00 2021-05-22 (27,957) (27,656) Uber Technologies Inc. (15) 51.50 2021-05-08 (3,813) (1,788) Visa Inc., Class 'A' (26) 217.50 2021-05-22 (13,422) (2,269) Vistra Corp. (355) 16.00 2021-05-22 (7,300) (10,909) (395,605) (162,961)

Written Call Options USD Number of Contracts Strike Price (USD) Expiry Date Premium Received (CAD) Fair Value (CAD) Alibaba Group Holding Ltd. (20) 247.50 2021-05-22 (7,676) (5,630) BHP Group Ltd. (65) 75.00 2021-05-22 (9,368) (7,111) CF Industries Holdings Inc. (75) 47.00 2021-05-22 (14,594) (27,886) Comcast Corp. (60) 55.50 2021-05-22 (7,740) (10,399) Ishares 20+ Year Treasury Bond ETF (40) 142.50 2021-05-22 (5,967) (1,917) Johnson & Johnson (23) 172.50 2021-05-22 (3,692) (452) Nextera Energy Inc. (70) 82.50 2021-05-22 (12,297) (1,635) Phillips 66 (40) 78.00 2021-05-22 (10,558) (20,650) Procter & Gamble Co. (The) (16) 142.00 2021-05-22 (1,620) (275) salesforce.com Inc. (14) 235.00 2021-05-22 (6,486) (5,713) Taiwan Semiconductor Manufacturing Co. Ltd. (40) 124.00 2021-05-22 (6,270) (4,179) Teladoc Inc. (19) 197.50 2021-05-22 (12,249) (2,125) Verizon Communications Inc. (35) 60.00 2021-05-22 (2,263) (602) Vertex Pharmaceuticals Inc. (25) 235.00 2021-05-22 (18,090) (9,219) Walt Disney Co. (The) (29) 192.50 2021-05-22 (10,947) (11,585) Xtrackers Harvest CSI 300 China A-Shares ETF (120) 40.00 2021-05-22 (6,550) (7,375) (136,367) (116,753) (531,972) (279,714)

2021 INTERIM REPORT 29 PURPOSE ENHANCED PREMIUM YIELD FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE ENHANCED PREMIUM YIELD FUND (unaudited)

A) INVESTMENT OBJECTIVES (NOTE 2) D) FAIR VALUE INVESTMENTS (NOTE 10) The Purpose Enhanced Premium Yield Fund seeks to provide shareholders with The following is a summary of the inputs used as of April 30, 2021 in valuing the long-term capital appreciation and high monthly income by investing in equity Fund’s financial assets and financial liabilities carried at fair value: markets including by (a) writing cash covered put options to receive premiums Level 1 Level 2 Level 3 Total and reduce the net cost of acquiring securities and (b) directly investing in ($) ($) ($) ($) equity securities and writing call options on these securities to receive dividends Financial assets and premiums. To achieve its investment objectives, the fund will use various Options 8,905,653 – – 8,905,653 portfolio selection strategies to invest in (a) a broad range of equity securities Equities 22,396,090 – – 22,396,090 and cash in order to create long term value, generate regular income and reduce risk over the investment period and (b) a broad range of derivative instruments Forward currency contracts – 39,923 – 39,923 in compliance with Canadian securities laws to enhance portfolio income, Total financial assets 31,301,743 39,923 – 31,341,666 offer long-term capital appreciation and preserve capital. Financial liabilities B) REDEEMABLE PARTICIPATING SHARES (NOTE 4) Options 279,714 – – 279,714 Changes in outstanding shares during the periods ended April 30, 2021 and Total financial liabilities 279,714 – – 279,714 October 31, 2020 are summarized as follows: Total financial assets and liabilities 31,022,029 39,923 – 31,061,952 Number of Shares The following is a summary of the inputs used as of October 31, 2020 in valuing ETF Series A Series B Series F Series I the Fund’s financial assets and financial liabilities carried at fair value: Shares Shares Shares Shares Shares Outstanding, October 31, 2019 75,000 848,951 1,063,184 1,075,801 300,378 Level 1 Level 2 Level 3 Total Issued 350,000 6,777 234,753 3,809,923 – ($) ($) ($) ($) Reinvested dividends – 26,020 53,410 197,154 3,156 Financial assets Redeemed (275,000) (340,749) (332,600) (704,665) – Equities 5,422,505 – – 5,422,505 Outstanding, October 31, 2020 150,000 540,999 1,018,747 4,378,213 303,534 Funds 26,941,407 – – 26,941,407 Issued 150,000 – 26,267 179,393 – Total financial assets 32,363,912 – – 32,363,912 Reinvested dividends – 8,083 25,148 128,461 1,627 Redeemed (100,000) (137,523) (170,679) (728,180) – Financial liabilities Outstanding, April 30, 2021 200,000 411,559 899,483 3,957,887 305,161 Options 157,604 – – 157,604 Forward currency contracts – 57,513 – 57,513 Series UB Series UF Series MC Series MU Total financial liabilities 157,604 57,513 – 215,117 Shares Shares Shares Shares Total financial assets and liabilities 32,206,308 (57,513) – 32,148,795 Outstanding, October 31, 2019 14,875 108,150 1,762,694 10,709 Issued – 29,516 – – During the periods ended April 30, 2021 and October 31, 2020, there were no Reinvested dividends 586 6,224 97,087 1,149 transfers of assets between Level 1, Level 2 and Level 3. Redeemed (8) (12,950) (416,659) – E) FINANCIAL RISKS (NOTE 11) Outstanding, October 31, 2020 15,453 130,940 1,443,122 11,858 Market price risk Issued – 19,057 – – If equity securities prices had increased or decreased by 5% as at April 30, Reinvested dividends 299 2,837 41,786 582 2021, with all other variables held constant, the Fund’s net assets would have Redeemed (1,335) (34,899) (213,671) – increased or decreased, respectively, by approximately $1.1 million (October 31, Outstanding, April 30, 2021 14,417 117,935 1,271,237 12,440 2020 – $0.3 million). In practice, actual results may differ from this sensitivity analysis and the difference could be material. C) MANAGEMENT FEES, SERVICE FEES AND OTHER Interest rate risk EXPENSES (NOTE 5) As at April 30, 2021 and October 31, 2020, the Fund had no significant exposure Annual Management Fee to debt instruments. (% of Net Asset Value of each share) Series Management Fee ETF Shares 0.75% Series A Shares* 1.75% Series B Shares* 1.75% Series F Shares 0.75% Series I Shares negotiable up to 0.75%; paid directly to the Manager Series UB Shares* 1.75% Series UF Shares 0.75% Series MC Shares 0.75% Series MU Shares 0.75% * Includes a service fee at an annual rate of 1.00% of the daily average Net Asset Value of the Series A shares, Series B shares and Series UB shares.

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 30 PURPOSE ENHANCED PREMIUM YIELD FUND

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE ENHANCED PREMIUM YIELD FUND (unaudited) (continued)

Currency risk The table below summarizes the Fund’s direct exposure to foreign currencies as at April 30, 2021, including the fair value of currency contracts that are used to hedge the foreign currency risk: Fair Value Forward Net Excluding Forward Currency Currency Currency Contracts Contracts Exposure % of Currency ($) ($) ($) Net Assets US Dollar 14,705,752 (4,670,557) 10,035,195 28.6 Net exposure 14,705,752 (4,670,557) 10,035,195 28.6

The table below summarizes the Fund’s direct exposure to foreign currencies as at October 31, 2020, including the fair value of currency contracts that are used to hedge the foreign currency risk: Fair Value Forward Net Excluding Forward Currency Currency Currency Contracts Contracts Exposure % of Currency ($) ($) ($) Net Assets US Dollar 8,673,775 (5,062,246) 3,611,529 10.0 Net exposure 8,673,775 (5,062,246) 3,611,529 10.0

F) INTEREST IN UNDERLYING FUNDS The Fund invests in redeemable shares of other investment fund (“underlying funds”) to gain exposure to the investment objectives and strategies of the underlying funds. One underlying fund is generally financed through the capital invested by the Fund, along with other investors, which entitles shareholders to a proportionate share of the underlying fund’s net assets. The Fund does not provide additional financial or other support to the underlying funds. All underlying funds were established in and carry out their operations in Canada. The Fund’s interests in underlying funds are reported at fair value in “Investments” in its Statements of Financial Position and in its Schedule of Investments, which represents the Fund’s maximum exposure to financial loss. April 30, 2021 October 31, 2020 % of Ownership % of Ownership Underlying Funds Net Assets Interest % Net Assets Interest % iShares 20+ Year Treasury Bond ETF 2.0 0.0 0.6 0.0 iShares MSCI Emerging Markets ETF 1.7 0.0 0.0 0.0 Purpose High Interest Savings ETF 60.4 1.2 73.9 1.2

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 31 PURPOSE GLOBAL BOND CLASS

INTERIM FINANCIAL STATEMENTS (unaudited)

STATEMENTS OF FINANCIAL POSITION (unaudited) As at: April 30, October 31, 2021 2020 ($) ($) Assets Investments: Non-derivative financial assets 224,294,727 167,717,723 Cash and cash equivalents 1,544,084 1,453,182 Receivables: Dividends 677,030 528,440 Capital shares sold 737,034 1,020,311 Prepaid expenses 21,212 8,739 Total assets 227,274,087 170,728,395 Liabilities Payables: Management fees (note 5) 68,265 41,509 Independent review committee fees (note 5) 3,046 1,639 Other accrued liabilities (note 5) 132,507 79,615 Dividends 91,833 63,238 Capital shares redeemed 332,412 336,239 Total liabilities 628,063 522,240 Net assets attributable to holders of redeemable shares 226,646,024 170,206,155 Net assets attributable to holders of redeemable shares per series ETF Shares 30,805,421 20,558,483 Series A 355,340 489,628 Series B 28,089,807 22,069,821 Series F 166,692,375 126,410,561 Series I 703,081 677,662 Total 226,646,024 170,206,155 Number of shares outstanding (note 4) ETF Shares 1,550,000 1,075,000 Series A 41,725 59,497 Series B 3,297,987 2,665,926 Series F 18,322,071 14,507,077 Series I 77,265 77,265 Net assets attributable to holders of redeemable shares per share ETF Shares 19.87 19.12 Series A 8.52 8.23 Series B 8.52 8.28 Series F 9.10 8.71 Series I 9.10 8.77 The accompanying notes are an integral part of the financial statements.

Approved on behalf of the Board of Directors of Purpose Mutual Funds Limited.

Som Seif Douglas Hall Director Director June 29, 2021

2021 INTERIM REPORT 32 PURPOSE GLOBAL BOND CLASS

STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the periods ended: April 30, April 30, April 30, April 30, 2021 2020 2021 2020 ($) ($) ($) ($) Income Increase (decrease) in net assets attributable to holders of Net gains (losses) on investments and derivatives: redeemable shares per series (note 8) Distributions from underlying funds 3,662,796 3,066,990 ETF Shares 1,265,911 (1,764,646) Net realized gain (loss) on sale of non-derivative financial assets – (2,098,280) Series A 24,514 (63,125) Net change in unrealized appreciation (depreciation) on non- Series B 1,071,422 (1,314,825) derivative financial assets 7,644,537 (6,890,249) Series F 8,551,313 (3,037,520) Net gains (losses) on investments and derivatives 11,307,333 (5,921,539) Series I 38,261 (37,518) Securities lending income 1, 2 969 793 Total 10,951,421 (6,217,634) Total revenue 11,308,302 (5,920,746) Average number of shares outstanding for the period per series Expenses (note 8) Management fees (note 5) 629,417 292,994 ETF Shares 1,273,481 1,125,549 Custodian and fund accounting fees 99,697 134,604 Series A 48,505 134,590 Transaction costs (note 9) 6,353 1,500 Series B 2,996,049 2,250,712 Independent review committee fees (note 5) 1,406 1,414 Series F 16,508,233 5,647,208 Interest and bank charges 154 – Series I 77,265 77,265 Audit fees – 13,840 Increase (decrease) in net assets attributable to holders of redeemable shares per share (note 8) Legal fees – 5,270 ETF Shares 0.99 (1.57) Other expenses (note 5) 904 1,240 Series A 0.51 (0.47) Total expenses 737,931 450,862 Series B 0.36 (0.58) Expenses waived/absorbed by the Manager (381,050) (153,974) Series F 0.52 (0.54) Net expenses 356,881 296,888 Series I 0.50 (0.49) Increase (decrease) in net assets attributable to holders of redeemable shares 10,951,421 (6,217,634) (1) Securities lending: The value of securities loaned and collateral received from securities lending as at April 30 is as follows: April 30, 2021 April 30, 2020 Value of securities loaned 445,510 40,285 Value of collateral received 468,323 42,327 (2) Securities lending Income The table below shows a reconciliation of the gross amount generated from the securities lending transactions of the Fund to the revenue from the securities lending disclosed in the Statements of Comprehensive Income. April 30, 2021 April 30, 2020 $ % $ % Gross securities lending income 1,612 166.4 1,322 166.7 Agent fees (643) (66.4) (529) (66.7) Securities lending income 969 100.0 793 100.0 The accompanying notes are an integral part of the financial statements.

2021 INTERIM REPORT 33 PURPOSE GLOBAL BOND CLASS

Series B Net assets attributable to holders of redeemable shares at beginning of period 22,069,821 11,737,334 Increase (decrease) in net assets attributable to holders of redeemable shares 1,071,422 (1,314,825) Redeemable share transactions Proceeds from issuance of redeemable shares 7,404,125 14,725,897 Exchange of redeemable shares 612,980 33,906 Payments for redemption of redeemable shares (2,922,753) (3,100,946) Reinvestment of distributions 330,349 218,606 Net increase (decrease) from redeemable share transactions 5,424,701 11,877,463 Distributions paid or payable to shareholders of redeemable shares Return of capital (476,137) (316,826) Total distributions to holders of redeemable shares (476,137) (316,826) Net increase (decrease) in net assets attributable to holders of redeemable shares 6,019,986 10,245,812 Net assets attributable to holders of redeemable shares at end of period 28,089,807 21,983,146

2021 INTERIM REPORT 34 PURPOSE GLOBAL BOND CLASS

STATEMENTS OF CASH FLOWS (unaudited) SCHEDULE OF INVESTMENTS (unaudited) For the periods ended: As at April 30, 2021 April 30, April 30, Number of 2021 2020 Shares/Units/ Average Cost Fair Value ($) ($) Par Value ($) ($) Long Positions – 98.92% Cash Flows from Operating Activities Exchange Traded Funds – 98.92% Increase (decrease) in net assets attributable to holders of redeemable shares 10,951,421 (6,217,634) Purpose Global Bond Fund 11,573,157 216,293,329 224,294,727 Adjustments for: Total Exchange Traded Funds – 98.92% 216,293,329 224,294,727 Purchase of investments (48,976,965) (96,138,845) Total Long Positions – 98.92% 216,293,329 224,294,727 Proceeds from sale of investments 38,145 37,846,202 Transaction Costs (note 9) (28,054) – Net realized loss (gain) on sale of investments – 2,098,280 Total Investments – 98.92% 216,265,275 224,294,727 Net change in unrealized depreciation (appreciation) in value of investments (7,644,537) 6,890,249 Cash and Cash Equivalents – 0.68% 1,544,084 Net change in non-cash working capital balances (80,008) (218,705) Other Assets, Less Liabilities – 0.40% 807,213 Transaction costs (note 9) 6,353 1,500 Net Assets – 100.00% 226,646,024 (45,705,591) (55,738,953) The accompanying notes are an integral part of the financial statements.

Cash Flows from Financing Activities HOLDINGS OF THE UNDERLYING FUND Proceeds from issuance of shares 73,030,711 94,640,047 PURPOSE GLOBAL BOND FUND Share exchanges 535,317 (405,075) SCHEDULE OF INVESTMENTS PORTFOLIO (unaudited) Payments for shares redeemed (26,757,512) (39,033,294) As at April 30, 2021 Distribution to holders, net of reinvestments (1,012,023) (611,872) 45,796,493 54,589,806 Number of Shares/Units/ Average Cost Fair Value Par Value ($) ($) Net increase (decrease) in cash and cash equivalents 90,902 (1,149,147) Exchange Traded Funds – 2.27% Cash and cash equivalents, at beginning of period 1,453,182 1,395,907 Purpose Floating Rate Income Fund 600,000 6,087,314 5,166,117 Cash and cash equivalents, at end of period 1,544,084 246,760 Purpose US Preferred Share Fund, Preferred 200,000 4,712,410 4,585,959 Interest received (paid), net of withholding taxes 3,514,206 2,788,078 10,799,724 9,752,076 The accompanying notes are an integral part of the financial statements. Total Exchange Traded Funds – 2.27% 10,799,724 9,752,076 Equities – 0.37% United States Preferred Equities – 0.37% Financials – 0.37% GMAC Capital Trust I, Series '2', Preferred, Callable 50,000 1,547,789 1,575,770 1,547,789 1,575,770 Total United States Preferred Equities – 0.37% 1,547,789 1,575,770 Total Equities – 0.37% 1,547,789 1,575,770 Fixed Income – 70.12% International Fixed Income – 26.99% Investment Grade – 26.99% Accor SA, Perpetual, 2.625%, 2169/04/03 1,000,000 1,332,349 1,431,720 AerCap Ireland Capital DAC / AerCap Global Aviation Trust, Callable, 1.75%, 2026/01/30 3,000,000 3,665,568 3,616,310 Aercap Ireland Capital DAC / Aercap Global Aviation Trust, Callable, 4.50%, 2023/09/15 1,000,000 1,346,793 1,323,737 AerCap Ireland Capital DAC / AerCap Global Aviation Trust, Callable, 4.625%, 2027/10/15 2,000,000 2,630,231 2,739,155 Aimco, Series '19-10X', Floating Rate, Callable, Class 'A', 3.62%, 2032/07/22 1,000,000 1,350,650 1,229,821 Alcoa Nederland Holding BV, 5.5%, 2027/12/15 3,000,000 4,053,000 3,999,611 Apidos CLO XXXI, Floating Rate, 5.65%, 2031/04/15 1,000,000 1,322,482 1,229,150 Aramark International Finance Sarl, Callable, 3.125%, 2025/04/01 2,000,000 3,008,351 2,993,039 Ares CLO Ltd., Series '19-51X', Floating Rate, Callable, Class 'C', 5.27%, 2031/04/15 250,000 330,637 307,463 Ares CLO Ltd., Series '19-51X', Floating Rate, Callable, Class 'D', 6.44%, 2031/04/15 500,000 661,275 614,565 Ares CLO Ltd., Series '19-52X', Floating Rate, Callable, Class 'C', 5.35%, 2031/04/22 250,000 328,988 308,227 Ares CLO Ltd., Series '19-52X', Floating Rate, Callable, Class 'D', 6.64%, 2031/04/22 250,000 328,988 307,284 Ares CLO Ltd., Series '19-53X', Floating Rate, Callable, Class 'C', 5.25%, 2031/04/24 500,000 668,175 614,573 Ares XLII Clo Ltd., Floating Rate, 7.148%, 2028/01/22 1,000,000 1,291,007 1,221,274 Atrium XII, Floating Rate, 4.753%, 2027/04/22 1,000,000 1,276,811 1,207,796

2021 INTERIM REPORT 35 PURPOSE GLOBAL BOND CLASS

SCHEDULE OF INVESTMENTS (unaudited) (continued) As at April 30, 2021 HOLDINGS OF THE UNDERLYING FUND PURPOSE GLOBAL BOND FUND SCHEDULE OF INVESTMENTS PORTFOLIO (unaudited) (continued) As at April 30, 2021 Number of Number of Shares/Units/ Average Cost Fair Value Shares/Units/ Average Cost Fair Value Par Value ($) ($) Par Value ($) ($) Avis Budget Finance PLC, Callable, 4.75%, 2026/01/30 2,000,000 3,081,146 3,013,432 Octagon Investment Partners 39 Ltd., Floating Rate, 4.92%, Avolon Holdings Funding Ltd., Callable, 4.25%, 2026/04/15 2,000,000 2,618,545 2,622,658 2030/10/20 2,000,000 2,559,961 2,479,080 Ballyrock CLO 2019-2 Ltd., Floating Rate, 3.33%, 2030/11/20 1,000,000 1,276,550 1,231,696 OHA Loan Funding 2016-1 Ltd., Floating Rate, 4.135%, 2033/01/20 800,000 1,058,720 983,805 Banco Santander SA, Perpetual, 7.5%, 2167/05/08 400,000 554,009 543,592 Palmer Square Loan Funding Ltd., Class 'D', Series '20-1A', Barclays PLC, Callable, 2.852%, 2026/05/07 500,000 712,021 647,540 Floating Rate, 5.07%, 2028/02/20 1,000,000 1,232,816 1,215,031 Barclays PLC, Perpetual, 6.125%, 2168/12/15 2,375,000 3,160,179 3,231,793 Palmer Square Loan Funding Ltd., Class 'D', Series '20-1X', BlueMountain CLO XXV Ltd., Class 'D', Series '19-25X', Floating Rate, 5.07%, 2028/02/20 500,000 616,432 595,875 Floating Rate, 3.79%, 2032/07/15 1,250,000 1,602,375 1,538,905 Palmer Square Loan Funding Ltd., Floating Rate, 2.692%, BNP Paribas SA, Callable, 6.625%, 2168/09/25 200,000 283,687 270,966 2026/08/15 2,000,000 2,259,894 2,394,079 BNP Paribas SA, Callable, 7.38%, 2049/12/29 1,000,000 1,523,578 1,435,162 Palmer Square Loan Funding Ltd., Floating Rate, 3.885%, BNP Paribas SA, Perpetual, 4.5%, 2169/08/25 500,000 634,014 614,037 2026/08/15 500,000 657,100 615,561 BP Capital Markets PLC, Perpetual, 3.625, 2169/06/22 2,000,000 3,049,126 3,223,502 Petroleos Mexicanos, Callable, 5.95%, 2031/01/28 645,000 840,678 766,520 California Street CLO IX LP, 3.93%, 2028/10/16 500,000 636,608 616,111 Petroleos Mexicanos, Floating Rate, 3.827%, 2022/03/11 1,000,000 1,292,422 1,246,960 CIFC Funding 2018-III Ltd., Floating Rate, 2031/07/18 1,500,000 1,860,340 1,842,803 Repsol International Finance BV, Perpetual, 4.247%, 2168/12/11 385,000 581,408 627,001 CIFC Funding 2019-II Ltd., Floating Rate, 2034/04/17 500,000 625,875 614,943 Royal Bank of Scotland Group PLC, Perpetual, 6%, CIFC Funding 2019-II Ltd., Floating Rate, 4.18%, 2033/01/16 1,600,000 2,109,728 1,981,466 2168/09/29 375,000 522,471 511,035 CIFC Funding Ltd., Series '19-2X', Floating Rate, Callable, Skandinaviska Enskilda Banken AB, Variable Rate, Perpetual, Class 'C', 5.08%, 2030/04/17 250,000 332,350 307,287 5.13%, 2168/05/13 400,000 548,241 523,802 CIFC Funding Ltd., Series '19-2X', Floating Rate, Callable, Symphony CLO XXII Ltd., Floating Rate, 4.464%, 2033/04/18 500,000 656,525 615,481 Class 'D', 6.25%, 2030/04/17 3,250,000 4,319,393 3,994,737 Takeda Pharmaceutical Co. Ltd., Callable, 3.175%, Comision Federal de Electricidad, Callable, 3.348%, 2050/07/09 750,000 1,025,812 877,443 2031/02/09 1,500,000 1,919,325 1,778,393 TechnipFMC PLC, Callable, 6.50%, 2026/02/01 1,290,000 1,687,499 1,692,933 Credit Suisse Group AG , Callable, Perpetual, 6.38%, 2049/12/31 1,000,000 1,427,815 1,337,506 TICP CLO VII Ltd., Floating Rate, 4.71%, 2033/04/15 500,000 662,475 614,568 Credit Suisse Group AG, Perpetual, 5.25%, 2170/02/11 500,000 667,040 639,926 TICP CLO XV Ltd., Floating Rate, 4.785%, 2033/04/20 500,000 656,525 614,878 Dryden Senior Loan Fund, Series '18-55X', Floating Rate, Trestles CLO III Ltd., Floating Rate, 4.887%, 2033/01/20 500,000 652,050 611,240 Callable, Class 'D', 5.52%, 2031/04/15 1,000,000 1,310,967 1,229,853 UBS Group AG , Callable, Perpetual, 6.88%, 2049/12/31 1,700,000 2,498,031 2,380,737 Elmwood CLO II Ltd., Floating Rate, 2034/04/20 500,000 628,850 615,480 UBS Group AG, Perpetual, 4.375%, 2169/08/10 2,000,000 2,550,228 2,455,252 Elmwood CLO IV Ltd., Floating Rate, 4.33%, 2033/04/15 2,000,000 2,602,246 2,463,725 United Group BV, Callable, 4%, 2027/11/15 2,000,000 3,097,550 2,933,693 Flatiron CLO 17 Ltd., Floating Rate, 3.25%, 2030/05/15 2,250,000 2,877,188 2,776,676 Vivion Investments Sarl, 3%, 2024/08/08 1,200,000 1,658,145 1,738,122 Galaxy XV CLO Ltd., 3.24%, 2030/10/15 500,000 623,304 616,910 Vodafone Group PLC, Callable, 3%, 2080/08/27 2,000,000 3,118,707 3,062,937 Imperial Brands Finance PLC, Callable, 3.125%, 2024/07/26 700,000 937,401 908,279 Voya CLO 2019-2 Ltd., Callable , Floating Rate, 5.953%, ING Groep NV, Variable Rate, Perpetual, 5.75%, 2166/12/31 500,000 690,041 678,015 2032/07/20 1,500,000 1,949,362 1,846,920 Intelsat Jackson Holdings SA , Callable, 8.00%, 2024/02/15 1,000,000 1,356,909 1,272,674 Voya CLO Ltd., Class 'D', Series '19-4X', Floating Rate, 4.07%, 2033/01/15 1,050,000 1,351,580 1,298,875 InterContinental Hotels Group PLC, Callable 1.625%, 2024/10/08 1,000,000 1,553,398 1,541,509 Voya CLO Ltd., Class 'E', Series '19-2X', Floating Rate, 6.82%, 2032/07/20 500,000 637,578 616,986 IPD 3 BV, Callable, 5.5%, 2025/12/01 1,000,000 1,560,673 1,537,047 Ypso Finance BIS SA, Callable, 6.0%, 2028/02/15 2,000,000 2,499,941 2,445,257 Jaguar Land Rover Automotive PLC, Callable, 5.875%, 2028/01/15 1,150,000 1,474,185 1,435,644 119,417,826 115,800,384 Jay Park CLO Ltd,Callable, Floating Rate, 4.616%, Total International Fixed Income – 26.99% 119,417,826 115,800,384 2027/10/20 1,000,000 1,261,025 1,229,720 United States Fixed Income – 43.13% Kayne CLO 7 Ltd., Floating Rate, 4.357%, 2033/04/17 1,000,000 1,321,850 1,231,846 Investment Grade – 43.13% Kayne CLO III Ltd., Floating Rate, 5.95%, 2032/04/15 500,000 659,938 613,115 Air Lease Corp. Callable, 3.00%, 2030/02/01 890,000 974,080 1,093,634 Lloyds Banking Group PLC, Variable Rate, Perpetual, 7.500%, Air Lease Corp., Variable Rate, Perpetual, 4.65%, 2049/12/31 1,206,000 1,766,387 1,678,159 2049/12/31 1,750,000 2,167,617 2,199,410 Mexico Government International Bond, Callable, 4.5%, Ally Financial Inc., Callable, 5.80%, 2025/05/01 460,000 641,544 660,510 2050/01/31 500,000 635,576 627,764 Ally Financial Inc., Perpetual, 4.7%, 2049/12/31 3,000,000 3,759,300 3,747,187 Milos CLO Ltd., Floating Rate, 3.885%, 2030/10/20 500,000 664,575 614,879 Altria Group Inc., Callable, 3.7%, 2051/02/04 550,000 613,191 610,582 Natwest Group PLC, Callable, 3.032%, 2035/11/28 500,000 598,073 600,040 Altria Group Inc., Callable, 4.8%, 2029/02/14 1,200,000 1,766,941 1,678,626 Niagara Park CLO Ltd., Series '19-1X', Floating Rate, Callable, American Airlines Group Inc., 5%, 2022/06/01 3,000,000 3,686,855 3,664,403 Class 'A', 3.75%, 2032/07/17 1,000,000 1,347,750 1,230,754 American Airlines Inc. / AAdvantage Loyalty IP Ltd., 5.75%, NXP BV / NXP Funding LLC / NXP USA Inc., Callable, 3.4%, 2029/04/20 2,380,000 3,003,322 3,138,198 2030/05/01 500,000 692,376 657,358 Amgen Inc., Callable, 3.375%, 2050/02/21 600,000 752,557 732,773 OCP CLO, Class 'D', Series '2019-17X', Floating Rate, 4.22%, 2029/07/20 1,500,000 1,993,954 1,846,686 Anheuser-Busch InBev Worldwide Inc., Callable, 4.75%, 2029/01/23 500,000 748,969 721,458

2021 INTERIM REPORT 36 PURPOSE GLOBAL BOND CLASS

SCHEDULE OF INVESTMENTS (unaudited) (continued) As at April 30, 2021 HOLDINGS OF THE UNDERLYING FUND PURPOSE GLOBAL BOND FUND SCHEDULE OF INVESTMENTS PORTFOLIO (unaudited) (continued) As at April 30, 2021 Number of Number of Shares/Units/ Average Cost Fair Value Shares/Units/ Average Cost Fair Value Par Value ($) ($) Par Value ($) ($) Antero Midstream Partners L.P. / Antero Midstream Finance Freeport-McMoRan Inc., Callable, 4.625%, 2030/08/01 2,000,000 2,721,800 2,716,422 Corp., Callable, 7.875%, 2026/05/15 1,000,000 1,304,300 1,341,310 Frontier Communications Corp., Callable, 5.875%, Apache Corp., Callable, 4.875%, 2027/11/15 1,820,000 2,437,799 2,364,006 2027/10/15 1,000,000 1,330,697 1,307,508 AssuredPartners Inc., Callable, 7.00%, 2025/08/15 1,000,000 1,327,600 1,257,420 Frontier Communications Corp., Callable, 6.75%, 2029/05/01 2,000,000 2,640,097 2,601,545 AT&T Inc., Callable, 4.50%, 2048/03/09 1,198,000 1,818,023 1,615,843 General Electric Co., Callable, 4.25%, 2040/05/01 500,000 691,121 686,826 Avis Budget Car Rental LLC / Avis Budget Finance Inc., General Electric Co., Series 'D', Variable Rate, Perpetual, Callable, 5.375%, 2029/03/01 1,080,000 1,371,222 1,383,900 5.00%, 2049/12/31 1,000,000 1,257,106 1,169,991 Bank of America Corp., Callable, 4.30%, 2168/07/28 3,525,000 4,589,385 4,468,152 General Motors Co., 6.80%, 2027/10/1 750,000 1,047,637 1,159,376 Bank of New York Mellon Corp. (The), Series 'E', Variable General Motors Financial Co. Inc., Perpetual, 5.7%, Rate, Perpetual, 4.95%, 2167/12/20 1,000,000 1,331,640 1,227,767 2169/03/30 2,000,000 2,631,300 2,753,296 BAT Capital Corp., Callable, 3.984%, 2050/09/25 550,000 628,846 623,638 Genesis Energy L.P. / Genesis Energy Finance Corp., Callable, BAT Capital Corp., Callable, 4.906%, 2030/04/02 1,000,000 1,620,277 1,386,939 8%, 2027/01/15 1,195,000 1,522,012 1,515,095 BMW US Capital LLC, Callable, 4.15%, 2030/04/09 500,000 795,221 710,235 Goldman Sachs Group Inc. (The) 3,000,000 3,855,582 3,720,637 Boeing Co. (The), 2.196%, 2026/02/04 3,000,000 3,838,650 3,691,947 Goldman Sachs Group Inc. (The), Callable, 4.4%, 2168/08/10 500,000 656,724 635,212 Boeing Co. (The), Callable, 5.93%, 2060/05/01 1,750,000 2,435,912 2,808,438 Goodyear Tire & Rubber Co. (The), Callable, 9.5%, 2025/05/31 1,000,000 1,414,122 1,387,403 Broadcom Inc., Callable, 3.75%, 2051/02/15 550,000 643,718 653,496 Harvest Midstream I L.P., Callable, 7.5%, 2028/09/01 1,330,000 1,765,575 1,766,172 Broadcom Inc., Callable, 5%, 2030/04/15 1,000,000 1,404,920 1,416,510 HCA Inc., Callable, 4.13%, 2029/06/15 975,000 1,339,099 1,332,691 Calpine Corp., Callable, 5%, 2031/02/01 1,465,000 1,957,093 1,776,044 HCA Inc., Callable, 5.25%, 2049/06/15 400,000 601,007 606,579 Carnival Corp., Callable, 5.75%, 2027/03/01 3,145,000 3,995,251 4,080,724 Hilcorp Energy I L.P. / Hilcorp Finance Co., Callable, 5.75%, Carpenter Technology Corp., Callable, 6.375%, 2028/07/15 1,460,000 1,985,089 1,968,813 2029/02/01 1,750,000 2,218,213 2,193,721 Charles Schwab Corp. (The), Perpetual, 5.375%, 2168/09/01 500,000 701,750 684,883 Huntington Bancshares Inc., Series 'E', Variable Rate, Charter Communications Operating LLC / Charter Perpetual, 5.70%, 2023/04/15 1,500,000 1,945,999 1,908,255 Communications Operating Capital, Callable, 4.8%, Iron Mountain Inc., Callable, 5.625%, 2032/07/15 3,295,000 4,496,100 4,280,963 2050/03/01 1,750,000 2,537,909 2,370,608 JPMorgan Chase & Co., Callable, 4.6%, 2168/08/01 3,500,000 4,609,405 4,441,841 Citigroup Inc., Callable, 4.7%, 2168/07/30 3,500,000 4,607,271 4,389,894 JPMorgan Chase & Co., Series 'I', Variable Rate, Perpetual, Citigroup Inc., Series 'Q', Variable Rate, Perpetual, 5.95%, 6.14%, 2049/12/31 511,000 679,690 630,765 2166/12/31 1,000,000 1,333,033 1,233,452 Kinder Morgan Inc., Callable, 5.55%, 2045/06/01 425,000 626,877 636,885 CMS Energy Corp., Callable, 3.75%, 2050/12/01 3,000,000 3,909,705 3,719,715 Kraft Heinz Foods Co., Callable, 4.875%, 2049/10/01 1,630,000 2,217,327 2,300,777 CommScope Inc., Callable, 7.125%, 2028/07/01 2,460,000 3,419,910 3,276,098 Las Vegas Sands Corporation , Callable, 3.2%, 2024/08/08 700,000 946,549 902,815 DCP Midstream Operating L.P., Callable, 5.6%, 2044/04/01 225,000 250,634 284,856 Magellan Midstream Partners L.P., Callable, 3.95%, DCP Midstream Operating L.P., Callable, 5.625%, 2027/07/15 1,885,000 2,557,568 2,535,216 2050/03/01 500,000 608,572 624,467 Dell International LLC / EMC Corp., Callable, 6.2%, Marathon Oil Corp., Callable, 4.40%, 2027/07/15 475,000 655,116 651,502 2030/07/15 1,000,000 1,411,961 1,545,199 Mariner CLO 2015-1 LLC, Floating Rate, 3.985%, 2029/04/20 500,000 665,900 617,886 Delta Air Lines Inc. / SkyMiles IP Ltd., 4.75%, 2028/10/20 1,500,000 1,977,075 2,025,347 Marriott International Inc., Callable, 4.625%, 2030/06/15 1,000,000 1,368,896 1,380,403 Delta Air Lines Inc., 7.00%, 2025/05/01 965,000 1,354,378 1,379,511 MetLife Inc., Series 'C', Floating Rate, Perpetual, 5.25%, Delta Air Lines, Series '2007-1', Callable, Class 'A', 6.82%, 2167/12/15 332,000 445,727 409,098 2024/02/10 101,088 145,682 130,675 Metropolitan Transportation Authority, Callable, 5%, Diamondback Energy Inc., Callable, 4.4%, 2051/03/24 500,000 631,641 648,103 2033/11/15 1,000,000 1,453,899 1,592,621 Discovery Communications LLC, Callable, 4.90%, 2026/03/11 750,000 1,103,246 1,054,492 Mileage Plus Holdings LLC / Mileage Plus Intellectual DISH Network Corp., 3.375%, 2026/08/15 2,000,000 2,572,281 2,593,507 Property Assets Ltd, Callable, 6.5%, 2027/06/20 1,645,000 2,216,139 2,217,171 Edison International, Perpetual, 5.375%, 2069/09/15 1,000,000 1,261,950 1,274,715 MPLX L.P., Callable, 4.13%, 2027/03/01 475,000 646,491 650,150 Encore Capital Group Inc., Callable, Floating Rate, MPLX L.P., Callable,Floating Rate, 3.202%, 2022/09/09 1,000,000 1,310,973 1,229,801 2028/01/15 1,000,000 1,536,474 1,514,084 Mylan Inc., Callable, 4.55%, 2028/04/15 1,000,000 1,466,034 1,395,208 Energy Transfer Operating L.P., Callable, 5.0%, 2050/05/15 1,800,000 2,473,703 2,337,073 NCL Finance Ltd., Callable, 6.125%, 2028/03/15 1,320,000 1,734,053 1,711,211 EPR Properties, Callable, 3.75%, 2029/08/15 585,000 674,754 699,639 New Fortress Energy Inc., Callable, 6.5%, 2026/09/30 2,125,000 2,672,612 2,668,819 EPR Properties, Callable, 4.5%, 2027/06/01 85,000 107,420 107,633 Occidental Petroleum Corp., Callable, 5.5%, 2025/12/01 2,400,000 3,076,560 3,174,894 EPR Properties, Callable, 4.95%, 2028/04/15 330,000 405,019 424,294 Occidental Petroleum Corporation, Callable, 2.9%, EQM Midstream Partners L.P., Callable, 4.125%, 2026/12/01 1,000,000 1,169,136 1,243,365 2024/08/15 2,000,000 2,517,025 2,455,227 Expedia Group Inc., Callable, 2.95%, 2031/03/15 2,000,000 2,513,190 2,446,985 Pacific Gas & Electric Co., Callable, 3.5%, 2050/08/01 575,000 619,964 615,280 Exxon Mobil Corp., Callable, 3.452%, 2051/04/15 750,000 1,039,612 941,738 Plains All American Pipeline L.P. / PAA Finance Corp., Fairfax India Holdings Corp., Callable, 5%, 2028/02/26 1,000,000 1,251,150 1,224,000 Callable, 4.65%, 2025/10/15 1,000,000 1,445,836 1,363,484 Fiserv Inc., Callable, 2.65%, 2030/06/01 750,000 1,049,313 939,041 Realogy Group LLC / Realogy Co-Issuer Corp., Callable, 7.625%, 2025/06/15 1,000,000 1,358,697 1,344,708 Ford Motor Co., 4.75%, 2043/01/15 1,000,000 1,041,485 1,243,746 Royal Caribbean Cruises Ltd., Callable, 5.5%, 2028/04/01 1,375,000 1,729,200 1,774,501 Ford Motor Co., Callable, 9.625%, 2030/04/22 1,000,000 1,455,360 1,725,426 Sabine Pass Liquefaction LLC, Callable, 4.50%, 2030/05/15 500,000 700,826 697,329 Ford Motor Credit Co LLC, Callable, 4%, 2030/11/13 4,000,000 5,205,600 5,027,666

2021 INTERIM REPORT 37 PURPOSE GLOBAL BOND CLASS

SCHEDULE 1 – FORWARD FOREIGN CURRENCY CONTRACTS For the period ended April 30, 2021 S&P Credit Rating Settlement Currency Par Value Currency Par Value Forward Current Unrealized Gain Counterparty for Counterparty Date Buys ($) Sells ($) Rate Rate (Loss) ($) CIBC World Markets A-1 2021-05-28 CAD 364,698,779 USD 290,301,709 0.7960 0.8140 7,888,368 CIBC World Markets A-1 2021-05-28 CAD 6,156,042 USD 4,900,000 0.7960 0.8140 133,442 CIBC World Markets A-1 2021-05-28 CAD 4,413,395 USD 3,500,000 0.7930 0.8140 111,539 CIBC World Markets A-1 2021-05-28 CAD 4,027,648 USD 3,200,000 0.7950 0.8140 94,522 CIBC World Markets A-1 2021-05-28 CAD 2,512,760 USD 2,000,000 0.7960 0.8140 54,556 CIBC World Markets A-1 2021-05-28 CAD 2,062,253 USD 1,650,000 0.8000 0.8140 34,234 CIBC World Markets A-1 2021-05-28 CAD 1,378,795 USD 1,100,000 0.7980 0.8140 26,783 Citibank N.A., New York A-1 2021-07-19 CAD 3,505,636 USD 2,806,939 0.8010 0.8140 56,022 JPMorgan Chase Bank, New York A 2021-07-19 GBP 1,000,000 USD 1,387,867 1.3880 1.3810 (8,018) Citibank N.A., New York A-1 2021-07-19 USD 2,625,151 CAD 3,292,373 1.2540 1.2290 (66,170) Citibank N.A., New York A-1 2021-07-19 USD 461,256 CAD 579,073 1.2550 1.2290 (12,209) JPMorgan Chase Bank, New York A 2021-07-19 USD 18,214,275 EUR 15,193,452 0.8340 0.8300 (100,208) JPMorgan Chase Bank, New York A 2021-07-19 USD 1,380,760 GBP 1,000,000 0.7240 0.7240 (716) 8,212,145

SCHEDULE 2 – OPTIONS For the period ended April 30, 2021 Written Put Options USD Number of Contracts Strike Price (USD) Expiry Date Premium Received (CAD) Fair Value (CAD) iShares iBoxx High Yield Corporate Bond ETF (2500) 80.00 2021-05-22 (109,602) (803) iShares iBoxx High Yield Corporate Bond ETF (2500) 82.00 2021-06-19 (90,850) (64,052) (200,452) (64,855)

2021 INTERIM REPORT 38 PURPOSE GLOBAL BOND CLASS

SCHEDULE 3 – SWAP AGREEMENTS As of April 30, 2021 Fair Value of Unrealized Gain (Loss) Security Notional Shares Notional Shares on Swap Agreement iShares Short Duration High Yield Corporate Bond ETF 13,811,250 244,605 244,605 SPDR Bloomberg Barclays Short Term High Yield Bond ETF 13,530,000 394,695 394,695 SPDR Bloomberg Barclays Short Term High Yield Bond ETF 13,665,000 45,803 45,803 685,103 685,103

2021 INTERIM REPORT 39 PURPOSE GLOBAL BOND CLASS

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE GLOBAL BOND CLASS (unaudited)

A) INVESTMENT OBJECTIVES (NOTE 2) D) FAIR VALUE INVESTMENTS (NOTE 10) The Purpose Global Bond Class seeks to provide shareholders with exposure The following is a summary of the inputs used as of April 30, 2021 in valuing the to a diversified portfolio of corporate, government or other bonds, and debt Fund’s financial assets and financial liabilities carried at fair value: instruments or debt-like securities, of investment grade and non-investment Level 1 Level 2 Level 3 Total grade North American and/or international issuers. This could include ($) ($) ($) ($) investments in corporate bonds, notes, floating rate notes, convertible Financial assets bonds, preferred shares, bank loans, government bonds or other income Exchange traded funds 224,294,727 – – 224,294,727 producing securities. Total financial assets 224,294,727 – – 224,294,727 The investment objectives of the Fund are to achieve a positive total return Total financial assets and liabilities 224,294,727 – – 224,294,727 (including through both capital appreciation and distributions) in diverse market environments over time by tactically allocating its assets primarily among a The following is a summary of the inputs used as of October 31, 2020 in valuing broad range of government and corporate investment grade fixed income the Fund’s financial assets and financial liabilities carried at fair value: securities from around the world. Level 1 Level 2 Level 3 Total B) REDEEMABLE PARTICIPATING SHARES (NOTE 4) ($) ($) ($) ($) Changes in outstanding shares during the periods ended April 30, 2021 and Financial assets October 31, 2020 are summarized as follows: Exchange traded funds 167,717,723 – – 167,717,723 Total financial assets 167,717,723 – – 167,717,723 Number of Shares Total financial assets and liabilities 167,717,723 – – 167,717,723 ETF Series A Series B Series F Series I Shares Shares Shares Shares Shares During the periods ended April 30, 2021 and October 31, 2020, there were no Outstanding, October 31, 2019 825,000 145,647 1,387,855 3,205,692 77,265 transfers of assets between Level 1, Level 2 and Level 3. Issued 1,000,000 7,765 2,625,886 14,849,686 – Reinvested – 2,598 56,054 278,087 – E) FINANCIAL RISKS (NOTE 11) Redeemed (750,000) (96,513) (1,403,869) (3,826,388) – Market price risk Outstanding, October 31, 2020 1,075,000 59,497 2,665,926 14,507,077 77,265 If equity securities prices had increased or decreased by 5% as at April 30, Issued 500,000 – 934,341 6,152,199 – 2021, with all other variables held constant, the Fund’s net assets would Reinvested – 557 38,523 260,060 – have increased or decreased, respectively, by approximately $11.2 million Redeemed (25,000) (18,329) (340,803) (2,597,265) – (October 31, 2020 – $8.4 million). In practice, actual results may differ from this Outstanding, April 30, 2021 1,550,000 41,725 3,297,987 18,322,071 77,265 sensitivity analysis and the difference could be material. Interest rate risk C) MANAGEMENT FEES, SERVICE FEES AND OTHER As at April 30, 2021 and October 31, 2020 the Fund was indirectly invested in EXPENSES (NOTE 5) debt instruments through Its investments in mutual funds and is therefore exposed to interest risk. Further information about the mutual fund is available Annual Management Fee (% of Net Asset Value of each share) at www.sedar.com. Series Management Fee Currency risk ETF Shares 0.50% The Fund’s main exposure to foreign currency risk arises from investment in the Series A Shares* 1.00% underlying fund(s). Series B Shares* 1.00% The table below summarizes the underlying fund(s)’ direct exposure to foreign Series F Shares 0.50% currencies as at April 30, 2021, including the fair value of currency contracts that Series I Shares negotiable up to 0.50%; paid directly to the Manager are used to hedge the foreign currency risk of the underlying fund(s): * Includes a service fee at an annual rate of 0.50% of the daily average Net Asset Value of the Series A shares andFair Value Forward Net Series B shares. Excluding Forward Currency Currency Currency Contracts Contracts Exposure % of Currency ($) ($) ($) Net Assets British Pound 21,115 – 21,115 0.0 Euro 12,648,631 (11,756,366) 892,264 0.4 United States Dollar 206,122,670 (185,189,513) 20,933,158 9.2 Net exposure 218,792,416 (196,945,879) 21,846,536 9.6

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 40 PURPOSE GLOBAL BOND CLASS

NOTES TO THE FINANCIAL STATEMENTS – SPECIFIC INFORMATION – PURPOSE GLOBAL BOND CLASS (unaudited) (continued)

The table below summarizes the underlying fund(s)’ direct exposure to foreign F) INTEREST IN UNDERLYING FUNDS currencies as at October 31, 2020, including the fair value of currency contracts The Fund invests in redeemable shares of other investment fund (“underlying that are used to hedge the foreign currency risk of the underlying fund(s): funds”) to gain exposure to the investment objectives and strategies of the underlying funds. One underlying fund is generally financed through the capital Fair Value Forward Net invested by the Fund, along with other investors, which entitles shareholders Excluding Forward Currency Currency Currency Contracts Contracts Exposure % of to a proportionate share of the underlying fund’s net assets. The Fund does Currency ($) ($) ($) Net Assets not provide additional financial or other support to the underlying funds. Euro 14,097,499 (13,959,479) 138,020 0.1 All underlying funds were established in and carry out their operations in US Dollar 155,655,647 (137,577,706) 18,077,941 10.6 Canada. The Fund’s interests in underlying funds are reported at fair value in Net exposure 169,753,146 (151,537,185) 18,215,961 10.7 “Investments” in its Statements of Financial Position and in its Schedule of Investments, which represents the Fund’s maximum exposure to financial loss. If the Canadian dollar weakened or strengthened by 5% as at April 30, 2021 April 30, 2021 October 31, 2020 in relation to the US dollar, with all other variables held constant, the Fund’s % of Ownership % of Ownership net assets would have increased or decreased, respectively, by approximately Underlying Funds Net Assets Interest % Net Assets Interest % $1.1 million (October 31, 2020 – $0.9 million). In practice, actual results may Purpose Global Bond Fund 99.0 52.3 98.5 53.1 differ from this sensitivity analysis and the difference could be material. Credit risk The Fund’s main exposure to credit risk arises from investment in the underlying fund(s). The underlying fund(s)’ main exposure to credit risk is: (a) their trading of listed securities – the risk of default is considered minimal as all transactions are settled and paid for upon delivery using approved brokers and (b) the Fund may enter into derivative contracts to hedge their exposure to foreign currencies. The unrealized gain (loss) on outstanding contracts with counterparties represents the maximum credit exposure. These contracts are carried out with counterparties with a credit rating of at least “A-”. The exposure to credit risk on these contracts is considered minimal as there are few contracts outstanding at any one time and the transactions are settled and paid for upon delivery. The Fund may engage in securities lending transactions. The credit risk related to securities lending transactions is limited by the fact that the value of the securities held as collateral by the Fund in connection with these transactions is at least 105% of the fair value of the securities loaned. The collateral and loaned securities are marked to market on each business day. Further information regarding the collateral and securities on loan can be found in the footnotes to the Statements of Comprehensive Income. As at April 30, 2021 and October 31, 2020 the Fund invested in debt instruments through its investments with the underlying funds with the following Standard & Poor’s credit ratings: April 30, 2021 October 31, 2020 % of Total % of % of Total % of Bond Ratings Bonds Net Assets Bonds Net Assets AAA 1.2 0.8 1.9 1.3 AA 0.3 0.2 0.6 0.4 A 1.6 1.1 6.4 4.6 BBB 44.4 30.8 47.2 33.9 BB 28.6 19.9 23.5 16.9 B 12.0 8.3 6.1 4.4 Below BBB- 9.6 6.6 8.5 6.1 Unrated 2.3 1.6 5.8 4.2 Total 100.0 69.4 100.0 71.9

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 41 PURPOSE MUTUAL FUNDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (unaudited)

1. THE FUNDS the financial statements and disclosure of contingent liabilities. However, Purpose Global Resource Fund, Purpose Global Innovators Fund, Purpose Special uncertainty about these assumptions and estimates could result in outcomes Opportunities Fund, Purpose Enhanced Premium Yield Fund, and Purpose Global that could require a material adjustment to the carrying amount of the asset or Bond Class (the “Funds”, and individually a “Fund”) are classes of shares of liability affected in future periods. Purpose Mutual Funds Limited (the “Company”), which is currently governed by Purpose has concluded that the Funds met the additional characteristics of an Canada Business Corporations Act articles of amalgamation under the effective investment entity within IFRS 10, Consolidated Financial Statements. on January 26, 2016 as amended May 12, 2017, January 5, 2018, January 25, 2018 and March 5, 2018, and is the “umbrella” corporation for the Funds. Each The financial statements have been presented in Canadian dollars, which is the class of shares (“Share Class”) of the Company (other than common shares of Funds’ functional currency. the Company) is a separate mutual fund having specific investment objectives FINANCIAL INSTRUMENTS and is specifically referable to a separate portfolio of investments (“portfolio”). IFRS 9 – Financial Instruments Each Share Class is divided into separate Series of shares (“shares”). On July 24, 2014, the IASB issued the new financial instrument standard, The manager of the Funds is Purpose Investments Inc. (the “Manager” or IFRS 9 – Financial Instruments (“IFRS 9”). IFRS 9 prescribes requirements for “Purpose”). The registered office of the Funds is located at 130 Adelaide Street recognition and measurement of financial instruments, including impairment, West, Suite 3100, Toronto, Ontario, M5H 3P5. derecognition, and hedge accounting. Financial instruments include financial The following table sets out the Company’s Funds and their Investment assets and liabilities such as debt and equity securities, open-ended investment Sub-Advisors (collectively, the “Investment Sub-Advisors”) and the date of funds and derivatives. commencement of operations of each fund: The company adopted IFRS 9 in each Fund’s financial statements for the annual Date of commencement period beginning November 1, 2018. On initial adoption of IFRS 9, there was Fund Investment sub-advisor of operations no impact to the financial statements of the Fund. Upon initial recognition, Purpose Global Resource Fund N/A June 22, 2006 financial instruments are classified as fair value through profit or loss (“FVTPL”). Purpose Global Innovators Fund N/A July 8, 2011 All financial instruments are recognized in the Statements of Financial Position Purpose Special Opportunities Fund N/A December 1, 2009 when the Fund becomes a party to the contractual requirements of the Purpose Enhanced Premium Yield Fund Neuberger Berman Breton Hill ULC November 4, 2014 instrument. Financial assets are derecognized when the right to receive cash Purpose Global Bond Class Neuberger Berman December 10, 2013 flows from the instrument has expired or the Fund has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognized when Each Fund may have an unlimited number of series of shares and may issue an the obligation is discharged, cancelled and expires. As such, investment unlimited number of shares of each series. All series of shares of each fund are purchase and sale transactions are recorded as of the trade date. Financial redeemable at the shareholders’ option. Each series is intended for different instruments are subsequently measured at FVTPL with changes in fair value type of investors. recognized in the Statements of Comprehensive Income – Net unrealized gain (loss). Each Fund’s financial statements include the Schedule of Investments at April 30, 2021 and the Statements of Financial Position at April 30, 2021 and Cash and Cash Equivalents October 31, 2020, the Statements of Comprehensive Income, Statements of Cash and cash equivalents are comprised of cash and short-term investments. Changes in Financial Position and Statements of Cash Flows for the periods Loans and receivables ended April 30, 2021 and 2020 (the “financial statements”). Loans and receivables are non-derivative financial assets with fixed or These financial statements were approved for issuance by the Manager on determinable payments that are not quoted in an active market. The Funds June 29, 2021. include in this category amounts relating to receivables in respect of amounts receivable for portfolio securities sold and other short-term receivables. 2. INVESTMENT OBJECTIVES Other financial liabilities The purpose of each Fund is to invest the assets attributable to that Fund This category includes all financial liabilities, other than those classified as fair in accordance with the investment objectives attributable to that Fund. value through profit or loss. The Funds include in this category amounts relating The investment objectives for each Fund are set out in note A in the Specific to payables in respect of amounts payable for portfolio securities purchased and Information for each Fund. other accrued liabilities.

3. SUMMARY OF SIGNIFICANT A financial asset or a financial liability is recognized when a Fund becomes a ACCOUNTING POLICIES party to the contractual provisions of the instrument. Purchases or sales of financial assets that require delivery of assets within the time frame generally BASIS OF PREPARATION established by regulation or convention in the market place (regular way trades) These financial statements have been prepared in accordance with International are recognized on the trade date. Financial Reporting Standards (“IFRS”) as issued by the International Accounting Premiums received from writing options are included in derivative liabilities and Standards Board (“IASB”). subsequently measured at fair value on the Statements of Financial Position as The financial statements have been prepared on a going concern basis using initial reductions in the value of investments. Premiums received from writing the historical cost convention. However, each Fund is an investment entity and options that expire unexercised are recorded as realized gains and reported primarily all financial assets and financial liabilities are measured at fair value in as Net gain (loss) on sale of investments and derivatives on the Statements accordance with IFRS. Accordingly, the Funds’ accounting policies for measuring of Comprehensive Income. For a closing transaction, if the cost of closing the the fair value of investments and derivatives are consistent with those used in transaction exceeds the premium received, the Fund will record a realized loss measuring the Net Asset Value for transactions with shareholders. or, if the premium received at the time the option was written is greater than the amount paid, the Fund will record a realized gain and are reported as Net gain In applying IFRS, management may make estimates and assumptions that affect (loss) on sale of investments and derivatives. If a written put option is exercised, the reported amounts of assets, liabilities, income and expenses during the the cost for the security delivered is reduced by the premiums received at the reporting periods. Actual results may differ from such estimates. The preparation time the option was written. of the Fund’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts recognized in

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 42 PURPOSE MUTUAL FUNDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (unaudited) (continued)

Valuation of financial instruments are valued based on the difference between the contract forward rate and the Financial assets and financial liabilities at fair value through profit or loss forward bid rate (for currency held) or the forward ask rate (for currency sold are recorded in the Statements of Financial Position at fair value upon initial short) on the valuation date. Upon the closing of a contract, the gain or loss is recognition. All transaction costs such as brokerage commissions, incurred in included in the Statements of Comprehensive Income. the purchase and sale of securities for such instruments are recognized directly Valuation of future contracts in profit or loss. Loans and receivables and other financial liabilities (other than The margin deposits with brokers relating to futures contracts are included those classified as fair value through profit and loss) are measured initially at in cash held at broker for margin on the Statements of Financial Position. Any their fair value plus any directly attributable incremental costs of acquisition change in the margin requirement is settled daily and is included in cash held or issue. at broker for margin on the Statements of Financial Position. After initial measurement, the Funds measure financial instruments that Any difference between the settlement value at the close of business on each are classified as fair value through profit or loss, at fair value. Subsequent valuation date and the settlement value at the close of business on the previous changes in the fair value of those financial instruments are recorded in valuation date is recorded as net change in unrealized appreciation (depreciation) unrealized appreciation (depreciation) on investments. The applicable in value of futures contracts on the Statements of Comprehensive Income. period change in unrealized appreciation (depreciation) on investments is included on the Statements of Comprehensive Income. The average cost of Valuation of options portfolio investments represents the sum of the average cost of each portfolio When any option is written by any Fund, the premium received by the Fund will investment. For the purposes of determining the average cost of each portfolio be reflected as a liability that will be valued at an amount equal to the current investment, the purchase price of the portfolio investment acquired by a Fund fair value of the option that would have the effect of closing the position. Any is added to the average cost of the particular portfolio investment immediately difference resulting from revaluation shall be treated as an unrealized gain or prior to the purchase. The average cost of a portfolio investment is reduced by loss on investment; the liability shall be deducted in arriving at the net assets the number of shares or units sold multiplied by the average cost of the portfolio attributable to holders of redeemable shares of the Fund. The securities that are investment at the time of the sale. The average cost per share or unit of each the subject of a written option, if any, will be valued in the manner described portfolio investment sold is determined by dividing the average cost of the above for listed securities. portfolio investment by the number of shares or units held immediately prior Valuation of Margin to the sale transaction. Transaction costs incurred in portfolio transactions are Margin paid or deposited in respect of futures contracts and forward contracts excluded from the average cost of investments and are recognized immediately will be included in cash held at broker for margin, and margin consisting of in net income and are presented as a separate expense item in the financial assets other than cash will be noted as held as collateral. statements. Realized gains and losses from the sale of portfolio investments are Other derivatives and margin are fair valued in a manner that the Manager also calculated based on the average costs, excluding transaction costs, of the determines to represent their fair value. related investment. Valuation of Warrants The Funds’ obligation for net assets attributable to holders of redeemable Unlisted warrants are valued using the Black Scholes option valuation model. shares is presented at the redemption amount before discount. The model factors in the time value of money and volatility. The Funds measure their financial instruments, such as equities, bonds and Other financial assets and liabilities other interest-bearing investments and derivatives, at fair value at each reporting All trade receivables and other accounts receivable are designated as date. Fair value is the price that would be received to sell an asset or paid to receivables. They are recorded at amortized cost, which approximates their transfer a liability in an orderly transaction between market participants at the fair value. Similarly, all trade payables and accrued expenses are designated as measurement date. The fair value measurement is based on the presumption financial liabilities and are recorded at amortized cost, which approximates their that the transaction to sell the asset or transfer the liability takes place either in fair value. the principal market for the asset or liability. The fair values of each specific type of investment and derivative are determined INCOME RECOGNITION in the following manner: Interest income for distribution purposes Portfolio Investments The interest income for distribution purposes shown on the Statements of Portfolio investments listed on recognized public securities exchanges are Comprehensive Income represents the interest received by the Fund accounted valued using their last traded market price on the securities exchange when for on an accrual basis. The Funds do not amortize premiums paid or discounts the price falls within the day’s bid-ask spread. In the circumstance when the received on the purchase of fixed income securities except for zero coupon close or last traded price falls outside of the bid-ask spread, then fair value is bonds which are amortized on a straight-line basis. The interest income for determined by using bid price for long positions and ask price for short positions distribution purposes is the tax basis of calculating the interest received and or a different point within the bid-ask spread that management determines to which is subject to tax. be more representative of fair value. Dividend revenue Derivatives Dividend revenue is recognized when the Fund’s right to receive the payment Derivative instruments are financial contracts that derive their value from is established. Dividend revenue is presented gross of any non-recoverable underlying changes in equity prices, interest rates, foreign exchange rates or withholding taxes, which are disclosed separately in the Statements of other financial or commodity prices or indices. Derivative instruments are either Comprehensive Income. regulated exchange-traded contracts or negotiated over-the-counter contracts. Securities lending The Fund may use these instruments for trading purposes, as well to manage The Fund may lend portfolio securities in order to earn additional revenue the Funds’ risk exposure. from fees paid by the counterparty, which is included on the Statements of Derivatives are measured at fair value. Realized and unrealized gains and losses Comprehensive Income. These transactions involve the temporary exchange are recorded in the Statements of Comprehensive Income. of qualified securities as collateral with a commitment to deliver the same securities on a future date. Valuation of forward currency contracts The Funds may enter into forward currency contracts for hedging purposes or The market value of the loaned securities is determined on the close of any to establish an exposure to a particular currency. Forward currency contracts valuation date and any additional required collateral is delivered to the Fund

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 43 PURPOSE MUTUAL FUNDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (unaudited) (continued) on the next business day. The securities on loan continue to be included on the TAXES Schedule of Investments and are included in the total value on the Statements Uncertainties exist with respect to the interpretation of complex tax regulations of Financial Position in investments at fair value. and changes in tax laws on foreign withholding tax. Given the wide range of international investments, differences arising between the actual investment IFRS 15 – Revenue Recognition income and the assumptions made, or future changes to such assumptions The Company has adopted IFRS 15 in each Fund’s financial statements for the could necessitate future adjustments to tax expense already recorded. The Fund annual period beginning November 1, 2018. Since each Fund of the Company establishes provisions, based on reasonable estimate for possible consequences meets the definition of an investment entity, the revenues earned during the of audits by the tax authorities of the respective countries in which it invests. The year are considered investment income. Investment income is not in scope amounts of such provisions are based on various factors, such as experience of of IFRS 15, and therefore, the application of the new standard had no overall previous tax audits and differing interpretations of tax regulations by the taxable impact on the Company’s financial statements. entity and the responsible tax authority. Such differences of interpretation REDEEMABLE PARTICIPATING SHARES may arise on a wide variety of issues depending on the conditions prevailing in the respective investment’s domicile. As the Funds assess the probability Redeemable participating shares are classified as financial liabilities and are for litigation and subsequent cash outflow with respect to taxes as remote, no redeemable at the shareholder’s option at prices based on the Fund’s NAV per contingent liability has been recognized. share at the time of redemption. The amounts are continuously measured at their redemption value prior to discounts. The Fund’s shares do not meet the 4. REDEEMABLE PARTICIPATING SHARES criteria in IAS 32 for classification as equity and therefore, have been reclassified The Company is authorized to issue an unlimited number of classes of non- and presented as a financial liability. cumulative, redeemable, convertible, non-voting shares, and one class of voting FOREIGN CURRENCY TRANSLATIONS common shares which are owned by the Manager. The shares are redeemable and transferable. Each share of a series entitles the holder to the same rights Transactions during the year, including purchases and sales of securities, and privileges in relation to any other shareholder of that series. Shareholders income and expenses, are translated into Canadian dollars at the rate of are entitled to vote at all meetings of all shareholders and at all meetings of exchange prevailing on the date of the transaction. Assets and liabilities shareholders of the same series as the shares held. All shares rank equally with denominated in foreign currencies are retranslated at the functional currency respect to the payment of distributions. The realized and unrealized gains or rate of exchange at the reporting date. losses and income and common expenses of the Fund are allocated on each CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS valuation date to the shareholders in proportion to the respective prior day net The key assumptions concerning the future and other key sources of estimation asset value of each series of shares at the date on which the allocation is made. uncertainty at the reporting date, which have a significant risk of causing a All series specific expenses do not require an allocation. material adjustment to the carrying amounts of assets and liabilities within the Common shares next financial year, are discussed below. The Fund based the assumptions and The Company has issued 100 common shares for 100. The common shares estimates on parameters available when the financial statements were prepared. may vote at all shareholder meetings, except at a meeting of a class or However, existing circumstances and assumptions about future developments series of shares. However, the common shares have no rights to dividends may change due to market changes or circumstances arising beyond the control or distributions. of the Fund. Such changes are reflected in the assumptions when they occur. ETF Shares and Mutual Fund Shares Fair value of financial instruments The Funds have issued ETF shares and mutual fund shares as set out below: When the fair values of financial assets and financial liabilities recorded in the Fund ETF Series Mutual Fund Series Statements of Financial Position cannot be derived from active markets, their Purpose Global Resource Fund N/A Series A, Series B, Series F, Series L fair value is determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable Purpose Global Innovators Fund TSX: PINV Series A, Series B, Series F markets where possible, but where this is not feasible, estimation is required Purpose Special Opportunities Fund N/A Series A, Series B, Series F, Series X, Series Y in establishing fair values. The estimates include consideration of liquidity and Purpose Enhanced Premium Yield Fund TSX: PAYF Series A, Series B, Series F, Series I, model inputs related to items such as credit risk (both own and counterparty’s), Series UB, Series UF, Series MC, Series MU correlation and volatility. Changes in assumptions about these factors could Purpose Global Bond Class TSX: IGB Series A, Series B, Series F, Series I affect the reported fair value of financial instruments in the Statements of ETF shares and Mutual Fund shares of one Fund may be switched to another Financial Position and the level where the instruments are disclosed in the fair Fund’s series of shares, and between Series subject to various restrictions, value hierarchy. The models are tested for validity by calibrating to prices from including that ETF shares may not switch to Mutual Fund shares and vice versa. any observable current market transactions in the same instrument (without modification or repackaging) when available. ETF shares may be redeemed on any trading day at 95% of their closing Classification and measurement of investments and application price on the TSX, however, they will generally be able to sell ETF shares at the of the fair value option market price through a registered broker or dealer. Mutual Fund shares may be In classifying and measuring financial instruments held by the Fund, Purpose redeemed daily, subject to certain minimum amounts, by sending a redemption is required to make significant judgements in order to determine the most request to the shareholder’s registered broker or dealer. appropriate classification in accordance with IFRS 9. Purpose has assessed 5. MANAGEMENT FEES, SERVICE FEES AND the Fund’s business model, the manner in which all financial instruments are OTHER EXPENSES managed and performance evaluated as a group on a fair value basis, and concluded that FVTPL in accordance with IFRS 9 provides the most appropriate MANAGEMENT FEES measurement and presentation of the Fund’s financial instruments. Each Fund pays the Manager a management fee for portfolio management and distribution services, as well as oversight of portfolio sub-advisory services. The management fee is based on the average daily net asset value of the shares of the applicable series. The management fee, plus applicable HST, is accrued daily and paid monthly in arrears. The Funds can invest in underlying funds managed

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 44 PURPOSE MUTUAL FUNDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (unaudited) (continued) by the Manager or an affiliate of the Manager or by third parties in which case the a gross basis and the related withholding taxes are shown as a separate expense Manager cannot charge management fees to both the Funds and the underlying in the Statements of Comprehensive Income. funds where that would result in the duplication of a fee for the same services. 8. INCREASE (DECREASE) IN NET ASSETS FROM The Manager may, from time to time in its discretion, waive all or a portion OPERATIONS ATTRIBUTABLE TO HOLDERS OF of the management fee charged at any given time. In addition, the Manager REDEEMABLE SHARES PER SHARE may reduce the management fee borne by certain shareholders who have signed an agreement with the Manager. The Funds will pay out the amount Increase (decrease) in net assets from operations attributable to holders of the reduction in the form of a management fee distribution to the eligible of redeemable shares per share of each series is calculated by dividing the shareholder. increase (decrease) in net assets attributable to holders of redeemable shares from operations (excluding distributions), as reported in the Statements of Holders of Series I shares and Series UI shares of Purpose Enhanced Premium Comprehensive Income, by the weighted average number of shares in issue Yield Fund and Purpose Global Bond Class pay a negotiated management fee during the related period. directly to the Manager of up to 0.75% for Series I shares and Series UI shares of Purpose Enhanced Premium Yield Fund, and up to 0.50% for Series I shares 9. BROKERAGE COMMISSIONS of Purpose Global Bond Class, plus any additional amounts for administrative The Investment Sub-Advisor makes decisions, including the selection of markets expenses up to 0.05% per annum of the NAV of such series of shares and any and dealers and the negotiation of commissions, with respect to the purchase additional expenses as may be agreed to by the holder and the Manager. and sale of portfolio securities, certain derivative products (including futures) and the execution of portfolio transactions. Commissions paid to brokers in SERVICE FEE connection with portfolio transactions are included in transaction costs in the The Manager pays quarterly, from the management fee, a service fee to the Funds’ Statements of Comprehensive Income. Brokerage business is allocated dealer of each holder of Series A shares, Series B shares, Series UB shares, based on which broker can deliver to the Funds the best trade execution. Series X shares, and Series Y shares. The service fee is equal to 1.00% per annum of the aggregate Net Asset Value of the Series A shares, Series B shares, Series UB Soft dollar arrangements are when trades are allocated to brokers that provide shares, Series X shares, and Series Y shares, with the exception of Series X shares or pay for, in addition to transaction execution, investment research, statistical and Series Y shares of Purpose Special Opportunities Fund, which is 0.50% per or other similar services. Any soft dollar commissions are identified in the annum of the aggregate Net Asset Value of the Series X or Series Y shares of referenced footnote on the Statements of Comprehensive Income and refer to Purpose Special Opportunities Fund held. amounts paid to dealers.

6. INTERESTS IN UNDERLYING FUNDS 10. FAIR VALUE INVESTMENTS The Funds may invest in other investment funds (“underlying funds”). IFRS 13 requires disclosures relating to fair value measurements using a three- Where applicable, a Fund’s interests in underlying funds are reported in its level fair value hierarchy. The level within which the fair value measurement is Schedule of Investment Portfolio at fair value, which represent the Fund’s categorized in its entirety is determined on the basis of the lowest level input maximum exposure on these investments. Investment income earned from that is significant to the fair value measurement. Assessing the significance of underlying funds is included in net gains on investments in the Statements of a particular input requires judgement, considering factors specific to the asset Comprehensive Income. The Funds do not provide any additional significant or liability. The Funds’ hierarchy for disclosing the fair value of its financial financial or other support to underlying funds. instruments is based on the inputs summarized below: The interest in underlying funds is included in the Fund-Specific Notes. • Level 1 – valuation based on quoted prices (unadjusted) observed in active markets for identical assets or liabilities. 7. INCOME TAXES AND WITHHOLDING TAXES • Level 2 – valuation techniques based on inputs that are quoted prices of The Company qualifies and intends to continue to qualify as a mutual fund similar instruments in active markets; quoted prices for identical or similar corporation under the Income Tax Act (Canada). Mutual fund corporations are instruments in markets that are not active; inputs other than quoted prices used in a valuation model that are observable for that instrument; and generally subject to tax in the same manner as other public corporations except inputs that are derived from or corroborated by observable market data by that income taxes payable on realized capital gains are refundable on a formula correlation or other means. basis when shares of the Company are redeemed or capital gains dividends are • Level 3 – valuation techniques with significant unobservable market inputs. paid by the Company to its shareholders. For assets and liabilities that are recognized in the financial statements on a The Company is subject to a special tax at the rate of 38 1/3% on taxable recurring basis, the Fund determines whether transfers have occurred between dividends received from taxable Canadian corporations. This tax is refundable to levels in the hierarchy by re-assessing the categorization (based on the lowest the Company upon the payment of taxable dividends to its shareholders at the level input that is significant to the fair value measurement as a whole) at the rate of 1 of tax for every $2.61 of dividends paid. beginning of each reporting period. Although the Company is comprised of a number of separate Funds, it must The Funds’ fair value hierarchy classification of its assets and liabilities is compute its income and net capital gains for tax purposes as a single entity. included in Fair value measurements in the Fund-Specific Notes. The Company has established a policy to determine how it will allocate income and capital gains in a tax-efficient manner among the Funds in a way that is fair, 11. FINANCIAL RISKS consistent and reasonable for shareholders. In the normal course of business, the Funds are exposed to a variety of financial As at October 31, 2020, the Company had $39.9 million (October 31, 2019 risks: market price risk, interest rate risk, currency risk, portfolio concentration – $51.8 million) of non-capital losses expiring between 2035 and 2037 and risk, credit risk and liquidity risk. The Funds’ primary risk management objective capital losses of $224.1 million (October 31, 2019 – $186.7 million) for income is to protect earnings and cash flow and, ultimately, shareholder value. Risk tax purposes. Capital losses may be carried forward indefinitely to be applied management strategies, as discussed below, are designed and implemented against future capital gains. Non-capital losses may be utilized to reduce taxable to ensure the Funds’ risks and related exposures are consistent with their income over the twenty years following the year in which they arise. objectives and risk tolerance. The Company may incur withholding taxes imposed by certain countries on Most of the Funds’ risks are derived from their investments. The value of the investment income and capital gains. Such income and gains are recorded on investments within the Funds’ portfolios can fluctuate on a daily basis as a result

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 45 PURPOSE MUTUAL FUNDS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (unaudited) (continued) of changes in interest rates, economic conditions, commodity prices, and the Liquidity risk market and company news related to speciﬁc securities held by a Fund. The Liquidity risk is the risk of not being able to meet the Funds’ cash requirements investments are made in accordance with the Funds’ risk management policies. in a timely manner and includes the risk of not being able to liquidate assets The policies establish investment objectives, strategies, criteria and restrictions. at reasonable prices. This risk mainly arises from the Funds’ exposure to daily The objectives of these policies are to identify and mitigate investment risk redemptions. Sufficient notification is required for redemption requests to allow through a disciplined investment process and the appropriate structuring of the Manager to sell investments to raise cash to fund redemptions. In addition, each transaction. Each Funds’ financial risk disclosure is included in the Fund- the Funds retain sufficient cash positions to meet their daily cash requirements. Specific Notes. All liabilities are due within three months. Market price risk COVID-19 Global Pandemic Market price risk arises primarily from uncertainties about the future market On March 11, 2020, the World Health Organization declared COVID-19 a global prices of instruments held. Market price fluctuations may be caused by factors pandemic. The pandemic resulted in unprecedented actions by governments specific to an individual investment, or factors affecting all securities traded in around the world to curtail the spread of the disease. These events have resulted a market or industry sector. All investments present a risk of loss of capital. The in a high level of uncertainty and volatility in the financial markets in addition maximum risk resulting from financial instruments is equivalent to their fair to disruptions to businesses worldwide. The pandemic has had an enormous value. There is a significant exposure to market price risk arising from investment impact on consumers in all sectors. Governments have responded with fiscal in equity securities. measures to curtail the adverse effects of the pandemic, though the outcome and timeframe remains highly unpredictable and as such, the financial impact Interest rate risk cannot be estimated. Fluctuation in security prices, larger bid/ask spreads and Interest rate risk arises from interest-bearing financial instruments where the lower liquidity caused by the pandemic may impact valuation of investments, values of those instruments fluctuate due to changes in market interest rates. classification of fair value hierarchy, and assumptions by the Manager to make Currency risk accounting estimates. The Manager continues to closely monitor the impact of Currency risk arises from financial instruments that are denominated in the COVID-19 pandemic and its effects on the Fund’s risk exposures. a currency other than the Canadian dollar, which is the Funds’ functional currency. The Funds are exposed to the risk that the value of financial 12. CAPITAL MANAGEMENT instruments denominated in other currencies will fluctuate due to changes in The Funds considers their capital to consist of their issued and outstanding exchange rates. Forward currency contracts and options may be utilized by the shares. The Funds are not subject to externally imposed capital requirements Funds to hedge against currency fluctuations. The Funds’ exposure to currency and have no legal restrictions on the issue, repurchase or resale of redeemable risk relates primarily to cash and investments which are denominated in foreign shares beyond those included in the Funds’ prospectus. The capital received currencies, primarily US dollars. by a Fund is managed to achieve its investment objective of the Fund while Portfolio concentration risk maintaining liquidity to satisfy shareholder redemptions. Concentration indicates the relative sensitivity of the Fund’s performance The Funds manage their capital in accordance with their investment objectives to developments affecting a particular industry or geographical location. and strategies and the risk management practices outlined in note 11 while Concentrations of risk arise when a number of financial instruments or maintaining sufficient liquidity to meet distributions and redemptions. In order contracts are entered into with the same counterparty, or where a number of to manage its capital structure, the Funds may adjust the amount of dividends counterparties are engaged in similar business activities, or activities in the paid to shareholders. same geographical region, or have similar economic features that would cause Changes in the shares issued and outstanding of each series of each Fund for the their ability to meet contractual obligations to be similarly affected by changes periods ended April 30, 2021 and October 31, 2020 as applicable are reported in in economic, political or other conditions. Fund‑Specific note B, Redeemable Participating shares. The Manager manages the risk through diversification and a thorough understanding of each investment in the portfolio. 13. DIVIDENDS Credit risk The Funds expect to pay cash dividends of excess income as indicated below: Credit risk is the risk that a counterparty to a financial instrument fails to Purpose Global Resource Fund Monthly discharge an obligation or commitment it has entered into with a Fund. Purpose Global Innovators Fund Annually, if any The Funds’ main exposure to credit risk is: (a) their trading of listed securities – Purpose Special Opportunities Fund Annually, if any the risk of default is considered minimal as all transactions are settled and paid Purpose Enhanced Premium Yield Fund Monthly for upon delivery using approved brokers; (b) their investment in debt securities Purpose Global Bond Class Monthly through exchange traded funds because the issuer of an instrument that the exchange traded fund invests in may be unable to make interest payments A special year-end dividend will be paid where the Company has net taxable or repay the principal amount on maturity. The concentration of credit risk of capital gains or where the Company needs to pay a dividend in order to recover investments in debt instruments is minimal since the Funds invest in a variety refundable tax. of debt instruments issued by numerous issuers included in an exchange 14. RELATED PARTY TRANSACTIONS traded fund and (c) the Funds may enter into derivative contracts to hedge their exposure to foreign currencies. The unrealized gain (loss) on outstanding Purpose is deemed to be a related party as Manager of the Funds. Please refer contracts with counterparties represents the maximum credit exposure. These to note 5 above for fees paid to Purpose. At the inception of the Funds, the contracts are carried out with counterparties with a credit rating of at least “A-”. manager purchased shares of each Fund. The exposure to credit risk on these contracts is considered minimal as there are The Manager has appointed the Independent Review Committee (“IRC”) as few contracts outstanding at any one time and the transactions are settled and required by National Instruments 81-107 Independent Review Committee for paid for upon delivery. Investment Funds. The mandate of the IRC is to review, and provide input on, the Manager’s written policies and procedures that deal with conflict of interest matters in respect of the Funds. The fees for services rendered to the Funds are reported in the Statements of Comprehensive Income.

APRIL 30, 2021 AND OCTOBER 31, 2020 2021 INTERIM REPORT 46 CORPORATE INFORMATION

MANAGER BOARD OF DIRECTORS AND Purpose Investments Inc. INDEPENDENT REVIEW COMMITTEE 130 Adelaide Street West OF PURPOSE MUTUAL FUNDS LIMITED Suite 3100, P.O. Box 109 Toronto, ON M5H 3P5 SOM SEIF Chief Executive Officer, Chairman of the Board of Directors AUDITOR and Director Ernst & Young LLP EY Tower DOUGLAS G. HALL 100 Adelaide Street West, P.O. Box 1 Director, Chair of the Independent Review Committee Toronto, ON M5H 0B3 RANDALL C. BARNES CUSTODIAN Director, Member of the Independent Review Committee CIBC Mellon Trust Company JEAN M. FRASER 1 York Street, Suite 700 Director, Member of the Independent Review Committee Toronto, ON M5J 0B6

REGISTRAR AND TRANSFER AGENT TSX Trust Company OFFICERS AND DIRECTORS OF 100 Adelaide Street West, Suite 301 PURPOSE INVESTMENTS INC. Toronto, ON M5H 4H1

SHAREHOLDER AND RECORDKEEPING SOM SEIF CIBC Mellon Global Securities Company Chief Executive Officer, Chairman of the Board of Directors 1 York Street, Suite 700 and Director Toronto, ON M5J 0B6 VLADIMIR TASEVSKI TORONTO STOCK EXCHANGE LISTING Chief Operating Officer, Interim Chief Compliance Officer Ticker Symbols: and Director Purpose Global Innovators Fund PINV JEFF BOUGANIM Purpose Enhanced Premium Yield Fund PAYF Chief Financial Officer, Director Purpose Global Bond Class IGB

Purpose Investments Inc. T 416 583-3850 www.purposeinvest.com 130 Adelaide St. W, Suite 3100 TF 877 789-1517 [email protected] P.O. Box 109, Toronto, ON M5H 3P5 F 416 583-3851