Financial Statements

2020 Financial Statements

Bridgehouse Funds

Annual Report Covers Generic Eng_FINAL.indd 3 2018-11-21 1:30 PM This page is intentionally left blank. TABLE OF CONTENTS

Independent Auditor’s Report 4 Brandes Canadian Equity Fund 8 Brandes Canadian Money Market Fund 16 Brandes Corporate Focus Bond Fund 22 Brandes Emerging Markets Value Fund 32 Brandes Global Equity Fund 40 Brandes Global Opportunities Fund 50 Brandes Global Small Cap Equity Fund 58 Brandes International Equity Fund 66 Brandes U.S. Equity Fund 74 Bridgehouse Canadian Bond Fund 82 GQG Partners Global Quality Equity Fund 89 GQG Partners International Quality Equity Fund 96

Lazard Defensive Global Dividend Fund (formerly Lazard Global Managed Volatility Fund) 104 Lazard Global Balanced Income Fund 115 Lazard Global Compounders Fund 129 Lazard International Compounders Fund 139 Morningstar Aggressive Portfolio 146 Morningstar Balanced Portfolio 153 Morningstar Conservative Portfolio 160 Morningstar Growth Portfolio 167 Morningstar Moderate Portfolio 174 Morningstar Strategic Canadian Equity Fund 181 Sionna Canadian Equity Fund 187 Sionna Opportunities Fund 195 Sionna Strategic Income Fund 202 Notes to the Financial Statements 211 Contact Us 219

To the Unitholders and Trustee of

Brandes Canadian Equity Fund Brandes Canadian Money Market Fund Brandes Corporate Focus Bond Fund Brandes Emerging Markets Value Fund Brandes Global Equity Fund Brandes Global Opportunities Fund Brandes Global Small Cap Equity Fund Brandes International Equity Fund Brandes U.S. Equity Fund Bridgehouse Canadian Bond Fund GQG Partners Global Quality Equity Fund GQG Partners International Quality Equity Fund Lazard Defensive Global Dividend Fund (formerly Lazard Global Managed Volatility Fund) Lazard Global Balanced Income Fund Lazard Global Compounders Fund

Lazard International Compounders Fund Morningstar Aggressive Portfolio Morningstar Balanced Portfolio Morningstar Conservative Portfolio Morningstar Growth Portfolio Morningstar Moderate Portfolio Morningstar Strategic Canadian Equity Fund Sionna Canadian Equity Fund Sionna Opportunities Fund

PricewaterhouseCoopers LLP 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2 T: +1 416 863 1133, F: +1 416 365 8215

4 INDEPENDENT AUDITOR’S REPORT Sionna Strategic Income Fund (individually, a Fund)

Our opinion

In our opinion, the accompanying December 31, 2020 financial statements of each Fund present fairly, in all material respects, the financial position of each Fund, its financial performance and its cash flows as at and for the periods indicated in note 1(c) in accordance with International Financial Reporting Standards (IFRS).

What we have audited The financial statements of each Fund comprise:

the statements of financial position as at the period-end dates indicated in note 1(c);

the statements of comprehensive income for the periods indicated in note 1(c);

the statements of changes in net assets attributable to holders of redeemable units for the periods indicated in note 1(c);

the statements of cash flows for the periods indicated in note 1(c); and

the notes to the financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence We are independent of each Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Other information

Management is responsible for the other information of each Fund. The other information comprises the Annual Management Report of Fund Performance of each Fund.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of each Fund, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially

INDEPENDENT AUDITOR’S REPORT 5 inconsistent with the financial statements of each Fund or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements of each Fund in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the ability of each Fund to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate any Fund or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the financial reporting process of each Fund.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole for

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements of each Fund.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements of each Fund, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of each Fund.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

6 INDEPENDENT AUDITOR’S REPORT

based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of each Fund to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence

Fund to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements of each Fund, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants, Licensed Public Accountants

Toronto, Ontario March 18, 2021

INDEPENDENT AUDITOR’S REPORT 7 BRANDES CANADIAN EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 28,484 $ 27,101 Cash 1,857 4,853 Receivable for redeemable unit subscriptions 11 120 Dividends and accrued interest receivable 140 13 30,492 32,087

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 9 140 9 140

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 30,483 $ 31,947 Cost of investments 29,479 28,908

Net assets attributable to holders of redeemable units, Series A $ 24,118 $ 25,585 Number of redeemable units outstanding, Series A 1,181 1,348 Net assets attributable to holders of redeemable units per unit, Series A 20.43 18.98

Net assets attributable to holders of redeemable units, Series D $ 699 $ 756 Number of redeemable units outstanding, Series D 52 61 Net assets attributable to holders of redeemable units per unit, Series D 13.44 12.47

Net assets attributable to holders of redeemable units, Series F $ 5,487 $ 5,443 Number of redeemable units outstanding, Series F 293 311 Net assets attributable to holders of redeemable units per unit, Series F 18.76 17.48

Net assets attributable to holders of redeemable units, Series I $ 179 $ 163 Number of redeemable units outstanding, Series I 6 5 Net assets attributable to holders of redeemable units per unit, Series I 32.21 29.72

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

8 BRANDES CANADIAN EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 599 $ 639 Interest for distribution purposes 83 40 Income distributions received from underlying funds 249 426 Management Fee Rebates income 9 18 Net realized gain (loss) on sale of investments 1,220 693 Net change in unrealized appreciation (depreciation) of investments 812 (1,110) Net gain (loss) on investments 2,972 706

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 3 (2) Net gain (loss) on derivatives 3 (2)

Net realized gain (loss) on foreign currencies (11) - Net change in unrealized appreciation (depreciation) of foreign currencies 2 (2) Total net income (loss) 2,966 702

EXPENSES (note 6) Management fees 498 705 Legal - 1 Audit 4 4 Independent review committee 2 2 Custody and fund accounting 16 16 Filing fees 21 21 Unitholder reporting 4 5 Administration and transfer agent fees 69 83 Foreign withholding taxes 5 11 Transaction costs (note 3) 13 14 632 862 Expenses absorbed (41) (32) Total expenses net of absorption 591 830

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 1,778 $ (76) Series D 67 (15) Series F 512 (40) Series I 18 3 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,375 (128)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 1.41 $ (0.05) Series D 1.35 (0.24) Series F 1.86 (0.10) Series I 3.39 0.61

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

9 BRANDES CANADIAN EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

Amounts in thousands (except for number of units) For the years ended December 31, SERIES A SERIES D SERIES F 2020 2019 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 25,585 $ 31,137 $ 756 $ 438 $ 5,443 $ 7,248

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,778 (76) 67 (15) 512 (40)

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (323) (203) (14) (11) (152) (145) (323) (203) (14) (11) (152) (145)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 1,872 1,821 41 43 998 1,814 Reinvested distributions to holders of redeemable units 322 201 14 11 144 145 Net proceeds/(payments) from/for redeemable units transferred in/(out) (669) (730) - 483 669 247 Payments for redeemable units redeemed (4,447) (6,565) (165) (193) (2,127) (3,826) (2,922) (5,273) (110) 344 (316) (1,620)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (1,467) (5,552) (57) 318 44 (1,805)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 24,118 $ 25,585 $ 699 $ 756 $ 5,487 $ 5,443

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,348,011 1,620,389 60,619 34,740 311,333 406,801 Redeemable units issued for cash 105,599 96,086 3,437 3,401 64,670 99,188 Redeemable units issued for reinvested distributions 16,129 10,620 1,047 922 7,877 8,289 Net redeemable units transferred in/(out) (36,311) (36,921) - 36,864 39,207 13,648 Redeemable units redeemed (252,776) (342,163) (13,116) (15,308) (130,583) (216,593) BALANCE, END OF YEAR 1,180,652 1,348,011 51,987 60,619 292,504 311,333

Amounts in thousands (except for number of units) For the years ended December 31, SERIES I FUND TOTAL 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 163 $ 160 $ 31,947 $ 38,983

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 18 3 2,375 (128)

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (5) (5) (494) (364) (5) (5) (494) (364)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued - - 2,911 3,678 Reinvested distributions to holders of redeemable units 5 5 485 362 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - - Payments for redeemable units redeemed (2) - (6,741) (10,584) 3 5 (3,345) (6,544)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 16 3 (1,464) (7,036)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 179 $ 163 $ 30,483 $ 31,947

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 5,476 5,306 Redeemable units issued for cash - - Redeemable units issued for reinvested distributions 164 170 Net redeemable units transferred in/(out) - - Redeemable units redeemed (82) - BALANCE, END OF YEAR 5,558 5,476

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

10 BRANDES CANADIAN EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 2,375 $ (128)

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (1,220) (693) Unrealized (appreciation) depreciation on foreign cash - 2 Net change in unrealized (appreciation) depreciation of investments (812) 1,110 Reinvested distributions from underlying funds (249) (426) Purchase of investments (6,053) (4,293) Proceeds from sale of investments 6,951 8,720 992 4,292

CHANGE IN NON-CASH WORKING CAPITAL (127) 74

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 3,020 3,605 Distributions to holders of redeemable units (9) (2) Amounts paid on redemption of redeemable units (6,872) (10,487) (3,861) (6,884) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH - (2)

NET INCREASE (DECREASE) IN CASH (2,996) (2,520)

CASH—BEGINNING OF YEAR 4,853 7,373

CASH—END OF YEAR 1,857 4,853

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 467 702 Interest 83 40

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

11 BRANDES CANADIAN EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units and face value)

NUMBER OF AVERAGE FAIR % OF NET SHARES/UNITS SECURITY COST VALUE ASSETS EQUITIES Beverages 58,039 Corby Spirit and Wine Limited Cl. A $ 1,063 $ 981 3.2 78,910 Corby Spirit and Wine Limited Cl. B 1,216 1,270 4.2 2,279 2,251 7.4

Biotechnology 37,952 Knight Therapeutics Inc. 280 203 0.7

Chemicals 10,457 Nutrien Ltd. 470 641 2.1

Communications Equipment 173,882 EXFO, Inc. 758 755 2.5 94,869 Sierra Wireless Inc. 1,806 1,765 5.8 2,564 2,520 8.3

Containers & Packaging 3,541 Winpak, Ltd. 155 152 0.5

Distributors 42,430 Uni-Select Inc. 777 344 1.1

Diversiﬁed Telecommunications Services 21,646 BCE Inc. Series AN 2.17% Preferred 410 287 0.9

Electric Utilities 18,305 Emera Incorporated Series B 1.92% Perpetual Preferred 354 224 0.7

Electronic Equipment, Instruments & Components 48,881 Celestica Inc., Sub. Voting 401 502 1.6

Food Products 49,443 High Liner Foods Inc. 414 549 1.8

Household Durables 81,247 Dorel Industries Inc. Cl. B Sub. Voting 2,516 1,213 4.0

Insurance 2,500 E-L Financial Corporation Limited 1,142 1,914 6.3 1,760 Fairfax Financial Holdings Limited 847 764 2.5 11,186 Manulife Financial Corporation 225 254 0.8 22,981 Power Financial Corporation Series Q 1.68% Preferred 207 269 0.9 22,420 Sun Life Financial Inc. Series 9QR 1.49% Preferred 302 243 0.8 2,723 3,444 11.3

Machinery 98,753 Velan Inc. 1,401 691 2.3

Marine 46,836 Algoma Central Corporation 562 652 2.1

Media 32,480 Shaw Communications Inc. Series B 2.08% Preferred 630 429 1.4

Oil, Gas & Consumable Fuels 104,636 Cameco Corporation 1,201 1,786 5.9 1,847 Chesapeake Energy Corporation 5.75% Convertible Preferred 890 6 - 220,444 Gran Tierra Energy, Inc. 638 102 0.3 42,869 Husky Energy Inc. Series 2 1.81% Preferred 473 394 1.3 28,015 Pason Systems Inc. 226 221 0.7 25,786 TC Energy Corporation Series 4 1.36% Preferred 347 228 0.8 3,775 2,737 9.0

Paper & Forest Products 703,800 Western Forest Products Inc. 916 901 3.0

Textiles, Apparel & Luxury Goods 8,390 Gildan Activewear Inc. 151 299 1.0

Wireless Telecommunications Services 12,486 Rogers Communications Inc. Cl. B 777 741 2.4

Total Equities 21,555 18,780 61.6

Mutual Funds 601,755 Brandes Global Equity Fund Series I 7,256 9,188 30.1

12 BRANDES CANADIAN EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares/units and face value)

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME Corporate USD 2,295,000 Chesapeake Energy Corporation 11.50% Jan 01/2025 668 516 1.7

Total Fixed Income 668 516 1.7

Total Investments 29,479 28,484 93.4 Other Assets Less Liabilities 1,999 6.6 Net Assets Attributable to Holders of Redeemable Units 30,483 100.0

13 BRANDES CANADIAN EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Market Price Risk Essentially all of the assets and liabilities of the Fund are financial instruments. As at December 31, 2020, if the Fund’s benchmark (70% S&P/TSX Composite These financial instruments comprise the following: Index and 30% MSCI World Index) increased or decreased by 10%, with all other variables held constant, the net assets of the Fund would have increased or Portfolio by Industry Exposure decreased, respectively, by approximately $3.0 million (December 31, DEC. 31 DEC. 31 2019—$2.2 million), or 9.9% (December 31, 2019—6.9%) of total net assets. 2020 (%) 2019 (%) This impact is estimated based on the historical correlation between the return of Series I units of the Fund as compared to the return of the Fund’s benchmark(s). Equities Beverages 7.4 7.4 In practice, the historical correlation may not be representative of the future Biotechnology 0.7 0.9 correlation and, accordingly, the impact on net assets could be Capital Markets - 0.6 materially different. Chemicals 2.1 - Communications Equipment 8.3 6.3 Containers & Packaging 0.5 0.5 Foreign Currency Risk Distributors 1.1 1.5 The Fund’s investments are denominated primarily in Canadian dollars, which are Diversified Telecommunications Services 0.9 1.5 not subject to the risk of currency movements. However, the Fund is exposed to Electric Utilities 0.7 0.8 currency fluctuations through its investment in Brandes Global Equity Fund. Electronic Equipment, Instruments & Components 1.6 4.1 Food Products 1.8 0.4 Household Durables 4.0 1.5 Interest Rate Risk Insurance 11.3 10.6 Machinery 2.3 2.5 The substantial majority of the Fund’s financial assets are equity shares which do Marine 2.1 2.0 not pay interest. As a result, the Fund is not subject to significant amounts of risk Media 1.4 1.4 due to fluctuations in the prevailing levels of market interest rates. Oil, Gas & Consumable Fuels 9.0 6.9 Paper & Forest Products 3.0 4.0 Textiles, Apparel & Luxury Goods 1.0 - Credit Risk Wireless Telecommunications Services 2.4 1.5 The Fund enters into foreign exchange contracts to buy and sell currencies for the Mutual Funds 30.1 30.4 purpose of settling foreign securities transactions. These are short term spot Fixed-income securities settlements carried out with approved counterparties. The exposure to credit risk Corporate 1.7 - on these contracts is considered minimal as the transactions are settled and paid Total financial instruments at fair value 93.4 84.8 for upon delivery. Total other assets less liabilities at cost or amortized cost 6.6 15.2 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 SECURITIES LENDING The aggregate market value of all securities loaned by a fund cannot exceed 50% FAIR VALUE MEASUREMENTS of the net assets of the applicable Fund. The Funds receive collateral of at least Below is a summary of the inputs used as at December 31, 2020 and December 102% of the value of the securities on loan. Collateral may comprise of obligations 31, 2019 in valuing the Fund’s investments carried at fair values. of or guaranteed by the Government of Canada, or a province thereof, or by the United States government or its agencies. DECEMBER 31, 2020 QUOTED PRICES SIGNIFICANT As at December 31, 2020 and 2019 the fair value of securities on loan and IN ACTIVE OTHER SIGNIFICANT collateral received was $Nil. MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) OFFSETTING OF FINANCIAL INSTRUMENTS Equities 18,780 - - 18,780 The Fund does not enter into any enforceable master netting arrangement. Mutual Funds 9,188 - - 9,188 Fixed-income securities - 516 - 516 Total Investments 27,968 516 - 28,484

DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 17,375 - - 17,375 Mutual Funds 9,726 - - 9,726 Total Investments 27,101 - - 27,101

During the years ended December 31 2020 and December 31, 2019, there were no signiﬁcant transfers bewteen Level 1 and 2 priced securities.

FINANCIAL INSTRUMENTS RISKS The investment objective of the Brandes Canadian Equity Fund is to achieve long- term capital appreciation by investing primarily in equity securities of Canadian issuers. The Fund may also invest in foreign equity securities primarily through its investment in the Brandes Global Equity Fund.

See “Financial Instrument Risks” of the Brandes Global Equity Fund for disclosure of ﬁnancial instrument risks for this Fund.

14 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES CANADIAN EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % NET ASSETS OF AND PRINCIPAL AS AT AS AT UNDERLYING % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME FUND $ (000) NET ASSETS BUSINESS 2020 2019 Brandes Global Equity Fund Series I 284,083 30.1 Canada 3.2 3.0

The notes at the back of this document are an integral part of these ﬁnancial statements. 15 BRANDES CANADIAN MONEY MARKET FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 9,776 $ 8,641 Cash 88 35 Receivable for redeemable unit subscriptions 53 5 Dividends and accrued interest receivable - 1 9,917 8,682

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 58 - 58 -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 9,859 $ 8,682 Cost of investments 9,776 8,641

Net assets attributable to holders of redeemable units, Series A $ 6,097 $ 5,821 Number of redeemable units outstanding, Series A 610 582 Net assets attributable to holders of redeemable units per unit, Series A 10.00 10.00

Net assets attributable to holders of redeemable units, Series F $ 3,762 $ 2,861 Number of redeemable units outstanding, Series F 376 286 Net assets attributable to holders of redeemable units per unit, Series F 10.00 10.00

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

16 BRANDES CANADIAN MONEY MARKET FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ 65 $ 140 Total net income (loss) 65 140

EXPENSES (note 6) Management fees 88 109 Audit 1 1 Independent review committee 1 - Custody and fund accounting 7 5 Filing fees 24 23 Unitholder reporting 1 1 Administration and transfer agent fees 22 19 144 158 Expenses absorbed (86) (53) Total expenses net of absorption 58 105

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 3 $ 21 Series F 4 14 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 7 35

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.01 $ 0.04 Series F 0.01 0.06

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

17 BRANDES CANADIAN MONEY MARKET FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

Amounts in thousands (except for number of units) For the years ended December 31, SERIES A SERIES F FUND TOTAL 2020 2019 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 5,821 $ 7,133 $ 2,861 $ 2,119 $ 8,682 $ 9,252

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 3 21 4 14 7 35

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (3) (21) (4) (14) (7) (35) (3) (21) (4) (14) (7) (35)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 5,346 3,047 5,974 3,373 11,320 6,420 Reinvested distributions to holders of redeemable units 3 21 4 14 7 35 Net proceeds/(payments) from/for redeemable units transferred in/(out) - (8) - 8 - - Payments for redeemable units redeemed (5,073) (4,372) (5,077) (2,653) (10,150) (7,025) 276 (1,312) 901 742 1,177 (570)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 276 (1,312) 901 742 1,177 (570)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 6,097 $ 5,821 $ 3,762 $ 2,861 $ 9,859 $ 8,682

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 582,041 713,279 286,126 211,927 Redeemable units issued for cash 534,585 304,728 597,370 337,311 Redeemable units issued for reinvested distributions 324 2,060 397 1,364 Net redeemable units transferred in/(out) - (831) - 831 Redeemable units redeemed (507,303) (437,195) (507,655) (265,307) BALANCE, END OF YEAR 609,647 582,041 376,238 286,126

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

18 BRANDES CANADIAN MONEY MARKET FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 7 $ 35

ADJUSTMENTS FOR: Purchase of investments (33,095) (28,929) Proceeds from sale of investments 32,024 29,659 Interest Income (64) (139) (1,128) 626

CHANGE IN NON-CASH WORKING CAPITAL 1 (1)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 11,272 6,421 Amounts paid on redemption of redeemable units (10,092) (7,033) 1,180 (612)

NET INCREASE (DECREASE) IN CASH 53 13

CASH—BEGINNING OF YEAR 35 22

CASH—END OF YEAR 88 35

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Interest 66 139

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

19 BRANDES CANADIAN MONEY MARKET FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for the face value)

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS MONEY MARKET INSTRUMENTS Corporate 560,000 Bank of Montreal 0.24% Feb 09/2021 $ 560 $ 560 5.7 100,000 Bank of Nova Scotia 0.25% Apr 08/2021 100 100 1.0 100,000 Bank of Nova Scotia 0.25% Apr 21/2021 100 100 1.0 100,000 Canadian Imperial Bank of Commerce 0.22% Jan 26/2021 100 100 1.0 569,000 Royal Bank of Canada 0.24% Feb 03/2021 569 569 5.8 1,429 1,429 14.5

Government 1,000,000 Government of Canada Treasury Bills 0.11% Jun 10/2021 999 999 10.1 1,200,000 Government of Canada Treasury Bills 0.11% Jul 15/2021 1,199 1,199 12.2 600,000 Government of Canada Treasury Bills 0.12% Mar 18/2021 600 600 6.1 1,100,000 Government of Canada Treasury Bills 0.13% Apr 22/2021 1,100 1,100 11.1 500,000 Government of Canada Treasury Bills 0.14% Jan 21/2021 500 500 5.1 500,000 Government of Canada Treasury Bills 0.16% Feb 04/2021 500 500 5.1 750,000 Government of Canada Treasury Bills 0.17% Mar 11/2021 750 750 7.6 1,400,000 Province of Ontario Treasury Bills 0.14% Jan 27/2021 1,400 1,400 14.2 1,300,000 Province of Quebec Treasury Bills 0.17% May 07/2021 1,299 1,299 13.2 8,347 8,347 84.7

Total Investments 9,776 9,776 99.2 Other Assets Less Liabilities 83 0.8 Net Assets Attributable to Holders of Redeemable Units 9,859 100.0

20 BRANDES CANADIAN MONEY MARKET FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Credit Risk Essentially all of the assets and liabilities of the Fund are ﬁnancial instruments. At December 31, 2020 and December 31, 2019, the Fund was invested in debt These ﬁnancial instruments comprise the following: securities with the following credit ratings:

Portfolio by Industry Exposure DECEMBER 31, 2020 DECEMBER 31, 2019 DEC. 31 DEC. 31 DEBT SECURITIES % OF TOTAL % OF TOTAL BY CREDIT DEBT % OF DEBT % OF 2020 (%) 2019 (%) RATING* INSTRUMENTS NET ASSETS INSTRUMENTS NET ASSETS Short-term investments AAA/Aaa 72.4 71.8 97.4 96.9 Corporate 14.5 19.8 AA/Aa 27.6 27.4 2.6 2.6 Government 84.7 79.7 Total 100.0 99.2 100.0 99.5 Total ﬁnancial instruments at fair value 99.2 99.5 Total other assets less liabilities at cost or amortized cost 0.8 0.5 *Excludes cash & cash equivalents Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Credit ratings are obtained from Standard & Poor’s, Moody’s and Dominion Bond Rating Service. When more than one rating is obtained for a security, the average rating has been used. FAIR VALUE MEASUREMENTS Below is a summary of the inputs used as at December 31, 2020 and December 31, 2019 in valuing the Fund’s investments carried at fair values. SECURITES LENDING The aggregate market value of all securities loaned by a fund cannot exceed 50% DECEMBER 31, 2020 of the net assets of the applicable Fund. The Funds receive collateral of at least QUOTED PRICES SIGNIFICANT 102% of the value of the securities on loan. Collateral may comprise of obligations IN ACTIVE OTHER SIGNIFICANT of or guaranteed by the Government of Canada, or a province thereof, or by the MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS United States government or its agencies. ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) As at December 31, 2020 and 2019 the fair value of securities on loan and Short-term collateral received was $Nil. investments - 9,776 - 9,776 Total Investments - 9,776 - 9,776

DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Short-term investments - 8,641 - 8,641 Total Investments - 8,641 - 8,641

During the years ended December 31, 2020 and December 31, 2019, there were no signiﬁcant transfers bewteen Level 1 and 2 priced securities.

FINANCIAL INSTRUMENTS RISKS The investment objective of the Brandes Canadian Money Market Fund is to achieve a high level of current income while seeking to protect capital and to maintain liquidity. The Fund invests primarily in Canadian dollar denominated money market instruments.

Foreign Currency Risk The Fund’s investments are denominated entirely in Canadian dollars, the Fund’s functional currency. Therefore, the ﬁnancial instruments in the fund are not subject to signiﬁcant risk of currency movements.

Interest Rate Risk Due to the short-term nature of the debt instruments held by the Fund, and due to the fact that the majority of these instruments are held to maturity, the Fund is not exposed to a signiﬁcant risk that the value of instruments will ﬂuctuate due to changes in prevailing levels of market interest rates. At December 31, 2020 and December 31, 2019, the Fund’s exposure to interest rate risks by remaining term to maturity was as follows:

DECEMBER 31, 2020 DECEMBER 31, 2019 DEBT % OF % OF INSTRUMENTS ($000) NET ASSETS ($000) NET ASSETS Less than 1 year 9,776 99.2 8,641 99.5 Total 9,776 99.2 8,641 99.5

The notes at the back of this document are an integral part of these ﬁnancial statements. 21 BRANDES CORPORATE FOCUS BOND FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 47,926 $ 57,263 Cash 890 181 Receivable for redeemable unit subscriptions 34 862 Receivable from securities sold 822 - Dividends and accrued interest receivable 374 529 Receivable for open foreign currency spot or forward contracts 890 753 50,936 59,588

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 2,133 - Payable for redeemable unit redemptions 415 137 Payable for open foreign currency spot or forward contracts 30 60 2,578 197

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 48,358 $ 59,391 Cost of investments 42,253 51,615

Net assets attributable to holders of redeemable units, Series A $ 8,301 $ 12,744 Number of redeemable units outstanding, Series A 860 1,341 Net assets attributable to holders of redeemable units per unit, Series A 9.65 9.50 Net assets attributable to holders of redeemable units per unit, Series A (USD) 7.58 7.32

Net assets attributable to holders of redeemable units, Series F $ 18,496 $ 18,717 Number of redeemable units outstanding, Series F 1,922 1,975 Net assets attributable to holders of redeemable units per unit, Series F 9.62 9.48 Net assets attributable to holders of redeemable units per unit, Series F (USD) 7.56 7.30

Net assets attributable to holders of redeemable units, Series I $ 261 $ 251 Number of redeemable units outstanding, Series I 30 29 Net assets attributable to holders of redeemable units per unit, Series I 8.84 8.71

Net assets attributable to holders of redeemable units, Series AH $ 3,262 $ 4,227 Number of redeemable units outstanding, Series AH 407 543 Net assets attributable to holders of redeemable units per unit, Series AH 8.02 7.78

Net assets attributable to holders of redeemable units, Series FH $ 6,965 $ 9,355 Number of redeemable units outstanding, Series FH 879 1,217 Net assets attributable to holders of redeemable units per unit, Series FH 7.93 7.69

Net assets attributable to holders of redeemable units, Series IH $ 11,073 $ 14,097 Number of redeemable units outstanding, Series IH 1,361 1,786 Net assets attributable to holders of redeemable units per unit, Series IH 8.14 7.89

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

22 BRANDES CORPORATE FOCUS BOND FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ 1,636 $ 2,444 Management Fee Rebates income 68 74 Net realized gain (loss) on sale of investments 1,027 (811) Net change in unrealized appreciation (depreciation) of investments 25 (284) Net gain (loss) on investments 2,756 1,423

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (340) (1,232) Net change in unrealized appreciation (depreciation) of foreign exchange contracts 167 2,537 Net gain (loss) on derivatives (173) 1,305

Net realized gain (loss) on foreign currencies 33 16 Net change in unrealized appreciation (depreciation) of foreign currencies 1 (33) Total net income (loss) 2,617 2,711

EXPENSES (note 6) Management fees 359 475 Legal - 1 Audit 6 6 Interest expense 1 2 Independent review committee 2 2 Custody and fund accounting 22 22 Filing fees 23 22 Unitholder reporting 3 4 Administration and transfer agent fees 77 90 Foreign withholding taxes 30 58 523 682 Expenses absorbed (19) (4) Total expenses net of absorption 504 678

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 428 $ 147 Series F 659 225 Series I 11 5 Series AH 155 282 Series FH 358 729 Series IH 502 645 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,113 2,033

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.42 $ 0.09 Series F 0.35 0.12 Series I 0.37 0.17 Series AH 0.32 0.39 Series FH 0.34 0.47 Series IH 0.34 0.42

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

23 BRANDES CORPORATE FOCUS BOND FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

Amounts in thousands (except for number of units) For the years ended December 31, SERIES A SERIES F SERIES I 2020 2019 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 12,744 $ 18,332 $ 18,717 $ 15,285 $ 251 $ 245

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 428 147 659 225 11 5

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (142) (386) (362) (531) (7) (10) (142) (386) (362) (531) (7) (10)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 652 860 6,301 12,575 - 1 Reinvested distributions to holders of redeemable units 95 259 206 304 7 10 Net proceeds/(payments) from/for redeemable units transferred in/(out) (609) (343) 588 330 - - Payments for redeemable units redeemed (4,867) (6,125) (7,613) (9,471) (1) - (4,729) (5,349) (518) 3,738 6 11

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (4,443) (5,588) (221) 3,432 10 6

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 8,301 $ 12,744 $ 18,496 $ 18,717 $ 261 $ 251

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,340,889 1,892,768 1,975,038 1,583,624 28,798 27,664 Redeemable units issued for cash 65,389 88,691 640,879 1,307,785 - 56 Redeemable units issued for reinvested distributions 9,721 26,798 21,000 31,500 794 1,078 Net redeemable units transferred in/(out) (60,658) (35,359) 58,737 34,090 - - Redeemable units redeemed (495,060) (632,009) (773,431) (981,961) (57) - BALANCE, END OF YEAR 860,281 1,340,889 1,922,223 1,975,038 29,535 28,798

Amounts in thousands (except for number of units) For the years ended December 31, SERIES AH SERIES FH SERIES IH 2020 2019 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 4,227 $ 6,129 $ 9,355 $ 17,676 $ 14,097 $ 7,911

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 155 282 358 729 502 645

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (49) (138) (161) (366) (332) (441) (49) (138) (161) (366) (332) (441)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 312 732 899 902 660 6,201 Reinvested distributions to holders of redeemable units 44 123 86 230 332 331 Net proceeds/(payments) from/for redeemable units transferred in/(out) (77) (206) 98 219 - - Payments for redeemable units redeemed (1,350) (2,695) (3,670) (10,035) (4,186) (550) (1,071) (2,046) (2,587) (8,684) (3,194) 5,982

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (965) (1,902) (2,390) (8,321) (3,024) 6,186

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 3,262 $ 4,227 $ 6,965 $ 9,355 $ 11,073 $ 14,097

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 543,448 806,142 1,216,854 2,349,357 1,786,121 1,026,712 Redeemable units issued for cash 40,336 94,565 115,756 117,758 81,509 786,924 Redeemable units issued for reinvested distributions 5,732 15,877 11,277 30,055 42,170 42,009 Net redeemable units transferred in/(out) (9,761) (26,587) 12,637 28,541 - - Redeemable units redeemed (173,136) (346,549) (477,881) (1,308,857) (548,935) (69,524) BALANCE, END OF YEAR 406,619 543,448 878,643 1,216,854 1,360,865 1,786,121

24 BRANDES CORPORATE FOCUS BOND FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (CONTINUED)

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 59,391 $ 65,578

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,113 2,033

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (1,053) (1,872) (1,053) (1,872)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 8,824 21,271 Reinvested distributions to holders of redeemable units 770 1,257 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (21,687) (28,876) (12,093) (6,348)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (11,033) (6,187)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 48,358 $ 59,391

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

25 BRANDES CORPORATE FOCUS BOND FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 2,113 $ 2,033

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (1,027) 811 Net change in unrealized (appreciation) depreciation of investments (25) 284 Net change in unrealized (appreciation) depreciation of foreign exchange contracts (167) (2,537) Purchase of investments (29,465) (33,993) Proceeds from sale of investments 41,165 42,388 12,594 8,986

CHANGE IN NON-CASH WORKING CAPITAL 155 208

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 9,652 20,506 Distributions to holders of redeemable units (283) (615) Amounts paid on redemption of redeemable units (21,409) (28,873) (12,040) (8,982)

NET INCREASE (DECREASE) IN CASH 709 212

CASH (BANK INDEBTEDNESS)—BEGINNING OF YEAR 181 (31)

CASH—END OF YEAR 890 181

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Interest 1,761 2,594

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

26 BRANDES CORPORATE FOCUS BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares and face value)

NUMBER OF AVERAGE FAIR % OF NET SHARES SECURITY COST VALUE ASSETS EQUITIES Household Durables 2,894 Urbi, Desarrollos Urbanos, SAB de CV $ 37 $ 2 -

Total Equities 37 2 -

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME Government USD 5,915,000 United States Treasury Bond 2.25% Feb 15/2027 7,339 8,328 17.2 USD 3,100,000 United States Treasury Bond 2.38% May 15/2029 4,564 4,463 9.2 11,903 12,791 26.4

Corporate USD 780,000 Apple Inc. 2.40% May 03/2023 746 1,042 2.2 USD 1,465,000 AT&T Inc. 3.00% Jun 30/2022 1,904 1,931 4.0 USD 985,000 BP Capital Markets PLC 3.51% Mar 17/2025 1,280 1,400 2.9 USD 215,000 Charter Communications Operating, LLC / Charter Communications Operating Capital Corporation 4.91% Jul 23/2025 312 318 0.7 USD 1,527,000 Chesapeake Energy Corporation 11.50% Jan 01/2025 64 343 0.7 USD 1,000,000 Chevron Corporation 2.10% May 16/2021 1,272 1,281 2.6 USD 184,166 Continental Airlines, Inc. Series 2007-1 Cl. A Pass Through Trust 5.98% Oct 19/2023 151 237 0.5 USD 950,000 Exxon Mobil Corporation 2.40% Mar 06/2022 1,282 1,237 2.6 USD 220,000 Fifth Third Bancorp 8.25% Mar 01/2038 200 475 1.0 USD 155,000 FirstEnergy Corp. 7.38% Nov 15/2031 274 282 0.6 USD 325,000 Ford Motor Credit Company LLC 5.88% Aug 02/2021 452 424 0.9 USD 485,000 Iron Mountain Incorporated 4.88% Sep 15/2027 603 647 1.3 USD 1,269,000 JPMorgan Chase & Co. 3.68% Dec 29/2049 1,316 1,616 3.3 USD 839,000 Kinder Morgan, Inc. 4.30% Jun 01/2025 1,024 1,220 2.5 USD 1,000,000 Microsoft Corporation 2.40% Feb 06/2022 1,272 1,300 2.7 USD 485,000 Netﬂix, Inc. 5.38% Feb 01/2021 679 621 1.3 USD 155,000 Occidental Petroleum Corporation 1.67% Aug 15/2022 193 194 0.4 USD 450,000 Occidental Petroleum Corporation 3.50% Jun 15/2025 601 554 1.1 USD 615,000 Pligrim's Pride Corporation 5.75% Mar 15/2025 775 805 1.7 USD 315,000 Prime Security Services Borrower, LLC / Prime Finance, Inc. 5.75% Apr 15/2026 456 440 0.9 USD 815,000 Prime Security Services Borrower, LLC / Prime Finance, Inc. 6.25% Jan 15/2028 1,068 1,116 2.3 USD 805,000 PulteGroup, Inc. 5.50% Mar 01/2026 1,066 1,222 2.5 USD 1,069,000 Range Resources Corporation 5.00% Mar 15/2023 1,348 1,330 2.7 USD 275,000 Sealed Air Corporation 4.00% Dec 01/2027 377 375 0.8 USD 512,550 SLM Private Credit Student Loan Trust 0.46% Dec 16/2041 368 634 1.3 USD 666,053 SLM Private Credit Student Loan Trust 0.51% Jun 15/2039 581 816 1.7 USD 1,330,818 SLM Private Credit Student Loan Trust 0.53% Dec 15/2038 1,014 1,638 3.4 USD 825,000 SLM Private Credit Student Loan Trust 0.65% Sep 15/2033 628 1,031 2.1 USD 60,000 Telecom Italia Capital SA 6.38% Nov 15/2033 95 94 0.2 USD 345,000 Telefonica Emisiones SA 5.46% Feb 16/2021 316 442 0.9 USD 675,000 Tenet Healthcare Corporation 4.88% Jan 01/2026 919 900 1.9 USD 170,000 Tenet Healthcare Corporation 5.13% May 01/2025 232 221 0.5 USD 675,000 The Goldman Sachs Group, Inc. 3.00% Apr 26/2022 905 867 1.8 USD 465,000 Toll Brothers Finance Corp. 4.88% Nov 15/2025 620 667 1.4 USD 2,860,000 USB Capital IX 3.50% Oct 29/2049 2,310 3,588 7.4 USD 840,000 VMware, Inc. 3.90% Aug 21/2027 1,016 1,208 2.5 USD 531,000 Wells Fargo & Company 2.10% Jul 26/2021 685 683 1.4 USD 1,394 Wells Fargo Mortgage Backed Securities Trust Series 2006-AR14 Cl. 1A3 3.09% Oct 25/2036 1 2 - USD 530,000 Wyndham Destinations, Inc. 3.90% Mar 01/2023 664 690 1.4 29,069 33,891 70.1

Total Fixed Income 40,972 46,682 96.5

SHORT-TERM INVESTMENTS USD 974,820 State Street Co. Can U.S. Dollar Call Deposit 1,244 1,242 2.6

Total Investments 42,253 47,926 99.1 Foreign Exchange Contracts (a) 860 1.8 Liabilities Less Other Assets (428) (0.9) Net Assets Attributable to Holders of Redeemable Units 48,358 100.0

27 BRANDES CORPORATE FOCUS BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 15, 2021 CAD 24,025 USD 18,167 1.27425 to 1.33349 $ 890 Jan 15, 2021 USD 2,164 CAD 2,786 0.75138 to 0.78536 (30) $ 860 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; Source—Standard & Poor's Credit Rating Agency

28 BRANDES CORPORATE FOCUS BOND FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO During the years ended December 31, 2020 and December 31, 2019, the Essentially all of the assets and liabilities of the Fund are ﬁnancial instruments. reconciliation of investments measured at fair value using unobservable inputs These ﬁnancial instruments comprise the following: (Level 3) is presented as follows:

Portfolio by Industry Exposure DECEMBER 31, 2020 FIXED-INCOME DEC. 31 DEC. 31 SECURITIES EQUITIES TOTAL 2020 (%) 2019 (%) ($000) ($000) ($000) Equities January 1, 2020 2 - 2 Household Durables - - Purchases - - - Fixed-income securities Sales - - - Corporate 70.1 68.0 Transfer into Level 3 - - - Government 26.4 27.0 Transfer out of Level 3 (2) - (2) Short-term investments 2.6 1.4 Realized gains (losses) - - - Change in unrealized appreciation Total investments 99.1 96.4 (depreciation) - - - Foreign exchange contracts, net 1.8 1.2 December 31, 2020 - - - Total ﬁnancial instruments at fair value 100.9 97.6 Total other assets less liabilities at cost or amortized cost (0.9) 2.4 Total change in unrealized appreciation (depreciation) during the period for Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 assets held at December 31, 2020 - - -

FAIR VALUE MEASUREMENTS DECEMBER 31, 2019 FIXED-INCOME Below is a summary of the inputs used as at December 31, 2020 and December SECURITIES EQUITIES TOTAL 31, 2019 in valuing the Fund’s investments carried at fair values. ($000) ($000) ($000) January 1, 2019 - - - DECEMBER 31, 2020 Purchases - - - QUOTED PRICES SIGNIFICANT Sales (1) - (1) IN ACTIVE OTHER SIGNIFICANT Transfer into Level 3 4 - 4 MARKETS FOR OBSERVABLE UNOBSERVABLE Transfer out of Level 3 - - - IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Realized gains (losses) - - - ($000) ($000) ($000) ($000) Change in unrealized appreciation (depreciation) (1) - (1) Equities 2 - - 2 Fixed-income December 31, 2019 2 - 2 securities - 46,682 - 46,682 Total change in unrealized appreciation Short-term (depreciation) during the year for investments - 1,242 - 1,242 assets held at December 31, 2019 (1) - (1) Total Investments 2 47,924 - 47,926 Foreign Exchange Contracts, Net - 860 - 860 FINANCIAL INSTRUMENTS RISKS The investment objective of the Brandes Corporate Focus Bond Fund is to generate income and capital appreciation by investing primarily in U.S. dollar DECEMBER 31, 2019 denominated corporate fixed income securities, including investment grade and QUOTED PRICES SIGNIFICANT non-investment grade fixed income securities. The Fund may also invest in non- IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE U.S. dollar denominated fixed income securities. IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL The Fund uses derivatives such as forward contracts on the portions of the Fund ($000) ($000) ($000) ($000) that are attributable to the Hedged Series of units to hedge against currency Equities 4 - - 4 risk exposure. Fixed-income securities - 56,441 2 56,443 Short-term Market Price Risk investments - 816 - 816 As at December 31, 2020, if the Fund’s benchmarks (Bloomberg Barclays U.S. Total Investments 4 57,257 2 57,263 Intermediate Credit Index and Bloomberg Barclays U.S. Intermediate Credit Index Foreign Exchange (Hedged)) increased or decreased by 10%, with all other variables held constant, Contracts, Net - 693 - 693 the net assets of the Fund would have increased or decreased, respectively, by approximately $3.9 million (December 31, 2019—$4.9 million), or 8.1% During the years ended December 31, 2020 and December 31, 2019, there were (December 31, 2019—8.2%) of total net assets. This impact is estimated based no significant transfers between Level 1 and 2 priced securities. on the historical correlation between the return of Series I units of the Fund as compared to the return of the Fund’s benchmark. In practice, the historical correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different.

Foreign Currency Risk The tables below indicate the currencies to which the unhedged series of the Fund had signiﬁcant exposure on its ﬁnancial instruments as at December 31, 2020 and December 31, 2019 in Canadian dollar terms.

DECEMBER 31, 2020 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Mexican Peso 1 - - 1 U.S. Dollar 26,815 31 (524) 26,322 Total 26,816 31 (524) 26,323 % of Net Assets 55.5 0.1 (1.1) 54.5

The notes at the back of this document are an integral part of these ﬁnancial statements. 29 BRANDES CORPORATE FOCUS BOND FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 Credit Risk INVESTMENTS CASH OTHER NET TOTAL The Fund’s greatest concentration of credit risk is in its holdings of fixed-income CURRENCY ($000) ($000) ASSETS ($000) ($000) debt instruments. The fair value of debt securities includes consideration of the Mexican Peso 2 - - 2 credit worthiness of the debt issuer. The Fund may hold both investment and U.S. Dollar 30,573 - 283 30,856 non-investment grade debt securities. The maximum credit risk of these Total 30,575 - 283 30,858 investments is their carrying value. At December 31, 2020 and December 31, % of Net Assets 51.5 - 0.5 52.0 2019, the Fund was invested in debt securities with the following credit ratings: DECEMBER 31, 2020 DECEMBER 31, 2019 The following tables summarize the foreign currency risk associated with the DEBT SECURITIES % OF TOTAL % OF TOTAL Hedged Series which is offset by Forward Foreign Currency Contracts. BY CREDIT DEBT % OF DEBT % OF RATING* INSTRUMENTS NET ASSETS INSTRUMENTS NET ASSETS DECEMBER 31, 2020 AAA/Aaa 8.0 7.8 7.3 6.9 Forward AA/Aa 38.6 37.2 38.0 36.1 Foreign A/A 3.0 2.9 5.8 5.6 Currency BBB/Baa 26.3 25.4 27.5 26.1 Contracts outstanding BB/Ba 14.0 13.5 14.0 13.3 OTHER NET in Hedged B/B 9.4 9.0 4.5 4.3 INVESTMENTS CASH ASSETS Series TOTAL CCC/Caa - - 1.4 1.3 CURRENCY ($000) ($000) ($000) ($000) ($000) CC/Ca - - 1.5 1.4 Mexican Peso 1 - - - 1 D 0.7 0.7 - - U.S. Dollar 21,109 25 (413) (20,380) 341 Unrated - - - - Total 21,110 25 (413) (20,380) 342 Total 100.0 96.5 100.0 95.0 % of Net Assets 43.7 0.1 (0.9) (42.2) 0.7 *Excludes cash & cash equivalents Credit ratings are obtained from Standard & Poor’s, Moody’s, and Fitch. When more than one rating is obtained for a security, the highest rating has been used. DECEMBER 31, 2019 Forward The fund enters into foreign exchange contracts to buy and sell currencies for the Foreign Currency purpose of setting foreign securities transactions. These are short term spot Contracts settlements carried out with approved counterparties. The exposure to credit risk outstanding on these contracts is considered minimal as the transactions are settled and paid OTHER NET in Hedged for upon delivery. INVESTMENTS CASH ASSETS Series TOTAL CURRENCY ($000) ($000) ($000) ($000) ($000) For the Hedged series, the Fund uses forward contracts to hedge the foreign Mexican Peso 2 - - - 2 currency exposure on that portion of the Fund associated with the Hedged Series U.S. Dollar 26,686 - 247 (26,649) 284 of units. All of these contracts are with an approved counterparty. Total 26,688 - 247 (26,649) 286 % of Net Assets 44.9 - 0.4 (44.9) 0.4 SECURITIES LENDING As at December 31, 2020, if the Canadian dollar had strengthened or weakened The aggregate market value of all securities loaned by a fund cannot exceed 50% by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all of the net assets of the applicable Fund. The Funds receive collateral of at least other variables held constant, the Fund’s net assets would have decreased or 102% of the value of the securities on loan. Collateral may comprise of obligations increased, respectively, by approximately $0.5 million (December 31, of or guaranteed by the Government of Canada, or a province thereof, or by the 2019—$0.6 million), or 1.0% (December 31, 2019—1.0%) of total net assets. United States government or its agencies. The Fund consists of both Unhedged and Hedged Series. Exposure to currency impact would only affect the Unhedged Series. Approximately 56.0% (December As at December 31, 2020 and 2019 the fair value of securities on loan and 31, 2019—53.4%) of the Fund is invested in the Unhedged Series of units which collateral received was $Nil. has not been hedged with forward exchange contracts. The remaining 44.0% (December 31, 2019—46.6%) of the Fund is invested in the Hedged Series of units which has been hedged with forward exchange contracts and therefore not OFFSETTING OF FINANCIAL INSTRUMENTS subject to significant currency risk. In practice, the actual results may differ from The fund enters into various master netting agreements or other similar this sensitivity analysis and the difference could be material. agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain Interest Rate Risk circumstances, such as bankruptcy or termination of the contracts. The following table presents financial instruments that are offset, or subject to enforceable At December 31, 2020 and December 31, 2019, the Fund’s exposure to interest master netting agreements or other similar agreements but that are not offset, as rate risk by remaining term to maturity was as follows: at December 31, 2020 and December 31, 2019. The ‘Net’ column shows what DECEMBER 31, 2020 DECEMBER 31, 2019 the impact on the Fund’s Statements of Financial Position would be if all set-off rights were exercised. DEBT % OF % OF INSTRUMENTS ($000) NET ASSETS ($000) NET ASSETS DECEMBER 31, 2020 Less than 1 year 4,692 9.7 6,546 11.0 1 to 3 years 8,828 18.3 12,138 20.5 AMOUNTS 3 to 5 years 5,529 11.4 7,382 12.4 PRESENTED IN Greater than 5 years 28,875 59.7 31,193 52.5 THE STATEMENT OF FINANCIAL Total 47,924 99.1 57,259 96.4 POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH At December 31, 2020, if the prevailing interest rates had risen or declined by AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL 0.25% (December 31, 2019—0.25%), assuming a parallel shift in the yield Receivable for open curve, with all other variables held constant, net assets would have decreased or foreign currency increased, respectively, by approximately $0.4 million (December 31, spot or exchange contracts 890 (30) - 860 2019—$0.5 million), or 0.8% (December 31, 2019—0.8%) of total net assets. Payable for open The Fund’s sensitivity to interest rate changes was estimated using the weighted foreign currency average duration of the bonds. In practice, the actual results may differ from this spot or exchange sensitivity analysis and the difference could be material. contracts (30) 30 - -

30 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES CORPORATE FOCUS BOND FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 753 (60) - 693 Payable for open foreign currency spot or exchange contracts (60) 60 - -

The notes at the back of this document are an integral part of these ﬁnancial statements. 31 BRANDES EMERGING MARKETS VALUE FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 219,040 $ 293,395 Cash 1,172 4,442 Receivable for redeemable unit subscriptions 233 1,361 Receivable from securities sold 146 280 Dividends and accrued interest receivable 214 408 Receivable for open foreign currency spot or forward contracts 1 2 220,806 299,888

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 279 1,382 279 1,382

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 220,527 $ 298,506 Cost of investments 249,593 298,313

Net assets attributable to holders of redeemable units, Series A $ 56,653 $ 75,331 Number of redeemable units outstanding, Series A 2,787 3,369 Net assets attributable to holders of redeemable units per unit, Series A 20.33 22.36 Net assets attributable to holders of redeemable units per unit, Series A (USD) 15.96 17.22

Net assets attributable to holders of redeemable units, Series D $ 1,499 $ 1,909 Number of redeemable units outstanding, Series D 141 163 Net assets attributable to holders of redeemable units per unit, Series D 10.63 11.68

Net assets attributable to holders of redeemable units, Series F $ 151,057 $ 192,994 Number of redeemable units outstanding, Series F 6,793 7,886 Net assets attributable to holders of redeemable units per unit, Series F 22.24 24.47 Net assets attributable to holders of redeemable units per unit, Series F (USD) 17.46 18.85

Net assets attributable to holders of redeemable units, Series I $ 11,318 $ 28,272 Number of redeemable units outstanding, Series I 548 1,243 Net assets attributable to holders of redeemable units per unit, Series I 20.64 22.75

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

32 BRANDES EMERGING MARKETS VALUE FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 8,552 $ 11,022 Interest for distribution purposes 8 24 Management Fee Rebates income 384 443 Net realized gain (loss) on sale of investments (7,714) (2,558) Net change in unrealized appreciation (depreciation) of investments (25,635) 28,833 Net gain (loss) on investments (24,405) 37,764

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (40) (24) Net change in unrealized appreciation (depreciation) of foreign exchange contracts (1) 2 Net gain (loss) on derivatives (41) (22)

Other income 608 1,853 Net realized gain (loss) on foreign currencies (211) 37 Net change in unrealized appreciation (depreciation) of foreign currencies 25 (147) Total net income (loss) (24,024) 39,485

EXPENSES (note 6) Management fees 3,419 4,339 Legal - 6 Audit 30 29 Interest expense 3 - Independent review committee 12 12 Custody and fund accounting 152 157 Filing fees 25 29 Unitholder reporting 28 30 Other expenses 5 - Administration and transfer agent fees 495 536 Foreign withholding taxes 1,152 1,331 Capital gain tax 169 - Transaction costs (note 3) 395 230 5,885 6,699 Expenses absorbed (161) (75) Total expenses net of absorption 5,724 6,624

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (7,361) $ 8,286 Series D (169) 128 Series F (18,392) 20,913 Series I (3,826) 3,534 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (29,748) 32,861

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (2.41) $ 2.30 Series D (1.11) 0.76 Series F (2.49) 2.73 Series I (3.67) 2.91

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

33 BRANDES EMERGING MARKETS VALUE FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (7,361) 8,286 (169) 128 (18,392) 20,913

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (575) (1,262) (23) (38) (3,350) (5,042) (575) (1,262) (23) (38) (3,350) (5,042)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 5,350 7,007 268 219 36,784 42,392 Reinvested distributions to holders of redeemable units 572 1,255 23 38 3,225 4,844 Net proceeds/(payments) from/for redeemable units transferred in/(out) (1,464) (2,756) 17 1,382 1,447 1,374 Payments for redeemable units redeemed (15,200) (15,857) (526) (456) (61,651) (33,309) (10,742) (10,351) (218) 1,183 (20,195) 15,301

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (18,678) (3,327) (410) 1,273 (41,937) 31,172

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 56,653 $ 75,331 $ 1,499 $ 1,909 $ 151,057 $ 192,994

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 3,368,712 3,851,651 163,455 59,829 7,886,497 7,253,231 Redeemable units issued for cash 275,517 322,324 26,963 19,288 1,773,367 1,775,145 Redeemable units issued for reinvested distributions 28,643 56,249 2,156 3,285 147,223 198,231 Net redeemable units transferred in/(out) (76,889) (126,124) 1,805 121,295 69,050 57,365 Redeemable units redeemed (809,450) (735,388) (53,376) (40,242) (3,083,261) (1,397,475) BALANCE, END OF YEAR 2,786,533 3,368,712 141,003 163,455 6,792,876 7,886,497

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (3,826) 3,534 (29,748) 32,861

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (735) (1,086) (4,683) (7,428) (735) (1,086) (4,683) (7,428)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 418 884 42,820 50,502 Reinvested distributions to holders of redeemable units 735 1,086 4,555 7,223 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - - Payments for redeemable units redeemed (13,546) (1,202) (90,923) (50,824) (12,393) 768 (43,548) 6,901

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (16,954) 3,216 (77,979) 32,334

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 11,318 $ 28,272 $ 220,527 $ 298,506

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,242,615 1,209,687 Redeemable units issued for cash 21,533 39,416 Redeemable units issued for reinvested distributions 40,345 47,726 Net redeemable units transferred in/(out) - - Redeemable units redeemed (756,111) (54,214) BALANCE, END OF YEAR 548,382 1,242,615

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

34 BRANDES EMERGING MARKETS VALUE FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (29,748) $ 32,861

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 7,714 2,558 Unrealized (appreciation) depreciation on foreign cash - 18 Net change in unrealized (appreciation) depreciation of investments 25,635 (28,833) Net change in unrealized (appreciation) depreciation of foreign exchange contracts 1 (2) Purchase of investments (72,390) (68,033) Proceeds from sale of investments 113,530 56,266 44,742 (5,165)

CHANGE IN NON-CASH WORKING CAPITAL 194 560

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 43,948 49,537 Distributions to holders of redeemable units (128) (205) Amounts paid on redemption of redeemable units (92,026) (49,917) (48,206) (585) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH - (18)

NET INCREASE (DECREASE) IN CASH (3,270) (5,208)

CASH—BEGINNING OF YEAR 4,442 9,650

CASH—END OF YEAR 1,172 4,442

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 7,594 10,251 Interest 8 24

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

35 BRANDES EMERGING MARKETS VALUE FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Hotels, Restaurants & Leisure 482,763 Embraer SA ADR $ 11,648 $ 4,187 1.9 386,000 Galaxy Entertainment Group Limited $ 3,764 $ 3,826 1.7 3,230,200 Genting Berhad 8,234 4,569 2.1 Air Freight & Logistics 1,631,600 Wynn Macau, Limited 4,541 3,496 1.6 95,031 ZTO Express (Cayman), Inc. ADR 2,885 3,529 1.6 16,539 11,891 5.4

Airlines Household Durables 43,661 Copa Holdings SA Cl. A 4,435 4,294 1.9 79,700 Gree Electric Appliances Inc. of Zhuhai Cl. A 1,073 962 0.5 Beverages 86,111 Urbi, Desarrollos Urbanos, SAB de CV 4,271 55 - 30,823 Fomento Economico Mexicano, SAB de 5,344 1,017 0.5 CV (FEMSA) ADR 2,302 2,974 1.3 Industrial Conglomerates Commercial Banks 21,000 Largan Precision Co., Ltd 3,082 3,048 1.4 333,326 Absa Group Limited 3,731 3,471 1.6 93,038 Banco Latinoamericano de Comercio Insurance Exterior SA Cl. E 3,038 1,876 0.9 241,200 AIA Group Limited 3,109 3,743 1.7 288,100 Bangkok Bank PCL 1,606 1,458 0.7 295,500 Ping An Insurance (Group) Company of 185,500 Bangkok Bank PCL NVDR 1,150 934 0.4 China, Ltd. Cl. H 4,128 4,579 2.1 1,574,223 Bank of Philippine Islands 2,847 3,393 1.5 7,237 8,322 3.8 158,639 HDFC Bank Limited 3,122 3,985 1.8 8,367,000 PT Bank Rakyat Indonesia (Persero) Tbk 2,281 3,168 1.4 Internet & Direct Marketing Retail 1,156,021 Sberbank of Russia PJSC 5,111 5,395 2.4 152,800 Alibaba Group Holding Limited 4,612 5,659 2.6 88,890 Shinhan Financial Group Co., Ltd. 4,103 3,359 1.5 703,700 The Siam Commercial Bank Public Company Limited 4,003 2,617 1.2 IT Services 1,489,000 Travelsky Technology Limited Cl. H 4,139 4,581 2.1 30,992 29,656 13.4 Media Commercial Services & Supplies 930,177 China South Publishing & Media Group 1,639,662 Prosegur Cash, SA 4,609 2,035 0.9 Co., Ltd. Warrants 2,301 1,728 0.8 18,698 S1 Corporation 2,009 1,865 0.8 1,308,103 Zee Entertainment Enterprises Limited 4,777 5,118 2.3 6,618 3,900 1.7 7,078 6,846 3.1 Construction Materials Metals & Mining 766,430 Cemex SAB de CV ADR 5,823 5,046 2.3 1,530,542 Alrosa PJSC 1,899 2,603 1.2 19,483 POSCO 6,037 6,200 2.8 Diversified Consumer Services 7,936 8,803 4.0 857,000 Cogna Educacao 3,006 975 0.4 Mortgage Real Estate Investment Trusts (REITs) Diversified Financial Services 571,333 Macquarie Mexico Real Estate 2,884,835 First Pacific Company Limited 2,424 1,181 0.5 Management SA de CV 1,021 1,028 0.5 Diversified Telecommunications Services Multiline Retail 55,750 Hellenic Telecommunications 1,506,500 Lifestyle International Holdings Ltd. 3,091 1,524 0.7 Organization SA (OTE) 630 1,141 0.5 603,716 Indus Towers Limited 1,785 2,426 1.1 84,213 O2 Czech Republic AS 1,479 1,253 0.6 Oil, Gas & Consumable Fuels 12,331,700 PT XL Axiata Tbk 3,922 3,055 1.4 24,618 Lukoil PJSC ADR 1,972 2,143 1.0 227,927 Sistema PJSFC GDR 1,103 2,177 1.0 4,734,000 PetroChina Company Limited Series H 3,530 1,867 0.8 62,700 Telefonica Brasil SA 852 718 0.3 694,600 Petroleo Brasileiro SA - 117,018 Telefonica Brasil SA ADR 2,848 1,319 0.6 Petrobras Preferred 4,033 4,803 2.2 4,573,331 Surgutneftegas PJSC Preferred 3,340 3,286 1.5 12,619 12,089 5.5 1,469,940 Vivo Energy PLC 3,735 2,175 1.0 341,020 YPF Sociedad Anonima ADR 8,969 2,041 0.9 Electric Utilities 25,579 16,315 7.4 22,062,273 Enel Chile SA 2,428 2,187 1.0 1,000,414 Power Grid Corporation of India Ltd. 3,612 3,289 1.5 Semiconductors & Semiconductor Equipment 6,040 5,476 2.5 244,000 Taiwan Semiconductor Manufacturing Company, Ltd. 2,410 5,879 2.7 Equity Real Estate Investment Trusts (REITs) 4,156,289 Fibra Uno Administracion SA de CV 7,402 5,989 2.7 Software 1,952,399 PLA Administradora Industrial S de 26,156 Baidu, Inc. ADR 3,524 7,203 3.3 RL de CV 4,052 3,829 1.7 11,454 9,818 4.4 Specialty Retail 755,000 Luk Fook Holdings (International) Food & Staples Retailing Limited 2,766 2,321 1.1 184,800 Companhia Brasileira de Distribuicao 3,891 3,403 1.5 Technology Hardware, Storage & Peripherals Food Products 188,000 ASUSTeK Computer Inc. 2,110 2,138 0.9 139,687 Adecoagro SA 1,339 1,210 0.5 83,217 Samsung Electronics Co., Ltd. 2,396 7,914 3.6 257,038 Ulker Biskuvi Sanayi AS 1,166 1,015 0.5 109,000 Wiwynn Corporation 3,661 3,486 1.6 2,505 2,225 1.0 8,167 13,538 6.1

Health Care Providers & Services Tobacco 3,089,500 Genertec Universal Medical Group 61,331 KT&G Corporation 7,411 5,981 2.7 Company Limited 3,436 2,938 1.4 797,900 PT Gudang Garam Tbk 3,787 2,966 1.4 1,505,900 Shanghai Pharmaceuticals Holding Co., 11,198 8,947 4.1 Ltd Cl. H 4,280 3,374 1.5 7,716 6,312 2.9 Transportation Infrastructure 4,080,000 China Railway Signal & Communication Corporation Limited Cl. H 3,581 1,744 0.8

36 BRANDES EMERGING MARKETS VALUE FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS Wireless Telecommunications Services 3,380,123 America Movil, SAB de CV Series L $ 3,214 $ 3,135 1.4 409,000 China Mobile Limited 5,413 2,969 1.4 315,729 Empresa Nacional de Telecomunicaciones SA (ENTEL) 3,302 2,495 1.1 11,088,727 Jasmine Broadband Internet Infrastructure Fund 3,963 4,478 2.0 392,790 Mobile TeleSystems PJSC 2,039 2,232 1.0 17,931 15,309 6.9

Total Investments 249,593 219,040 99.3 Foreign Exchange Contracts (a) 1 - Other Assets Less Liabilities 1,486 0.7 Net Assets Attributable to Holders of Redeemable Units 220,527 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 147 EUR 94 1.56835 $ 1 $ 1 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; Source—Standard & Poor's Credit Rating Agency

37 BRANDES EMERGING MARKETS VALUE FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 106,121 187,274 - 293,395 Total Investments 106,121 187,274 - 293,395 Foreign Exchange Contracts, Net - 2 - 2

Bridgehouse Asset Managers subscribes to the services of a third-party valuation service provider to provide fair value adjustments, where applicable, to the prices of foreign securities due to changes in the value of securities in North American markets following the closure of the foreign markets. The parameters used to apply the fair value adjustments are based on observable market data, and as such, the foreign securities are considered Level 2 priced securities.

38 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES EMERGING MARKETS VALUE FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

During the year ended December 31, 2020, $11.8 million were transferred from DECEMBER 31, 2019 Level 1 to Level 2, and $2.5 million were transferred from Level 2 to Level 1. INVESTMENTS CASH OTHER NET TOTAL During the year ended December 31, 2019, $8.0 million were transferred from CURRENCY ($000) ($000) ASSETS ($000) ($000) Level 1 to Level 2 and $9.7 million were transferred from Level 2 to Level 1. Brazilian Real 27,623 - 118 27,741 Chilean Peso 3,956 - - 3,956 Colombian Peso 1,771 - 6 1,777 Czech Koruna 1,193 - - 1,193 FINANCIAL INSTRUMENTS RISKS Euro 8,622 - 2 8,624 The investment objective of the Brandes Emerging Markets Value Fund is to Hong Kong Dollar 48,658 - - 48,658 achieve long-term capital appreciation by investing primarily in the equity Indian Rupee 2,987 - - 2,987 securities of companies located in or active mainly in emerging markets. Indonesian Rupiah 12,725 - - 12,725 Malaysian Ringgit 6,104 - - 6,104 Mexican Peso 23,012 - - 23,012 Market Price Risk New Taiwan Dollar 8,876 - 24 8,900 As at December 31, 2020, if the Fund’s benchmark (MSCI Emerging Markets New Turkish Lira 1,347 - - 1,347 Index) increased or decreased by 10%, with all other variables held constant, the Polish Zloty - - 2 2 Pound Sterling 8,305 - - 8,305 net assets of the Fund would have increased or decreased, respectively, by South African Rand 4,480 - - 4,480 approximately $21.6 million (December 31, 2019—$24.7 million), or 9.8% South Korean Won 39,460 - - 39,460 (December 31, 2019—8.3%) of total net assets. This impact is estimated based Thailand Baht 10,742 - 26 10,768 on the historical correlation between the return of Series I units of the Fund as U.S. Dollar 83,534 1,278 230 85,042 compared to the return of the Fund’s benchmark. In practice, the historical Total 293,395 1,278 408 295,081 correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different. % of Net Assets 98.3 0.4 0.1 98.8

As at December 31, 2020, if the Canadian dollar had strengthened or weakened Foreign Currency Risk by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all The tables below indicate the currencies to which the Fund had significant other variables held constant, the Fund’s net assets would have decreased or exposure on its financial instruments as at December 31, 2020 and December increased, respectively, by approximately $4.4 million (December 31, 31, 2019 in Canadian dollar terms, including the underlying principal of forward 2019—$5.9 million), or 2.0% (December 31, 2019—2.0%) of total net assets. In exchange contracts, if any. practice, the actual results may differ from this sensitivity analysis and the difference could be material. DECEMBER 31, 2020 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Interest Rate Risk Brazilian Real 9,898 - 31 9,929 The substantial majority of the Fund’s financial assets are equity shares which do Chilean Peso 4,682 - - 4,682 not pay interest. As a result, the Fund is not subject to significant amounts of risk Colombian Peso - - - - due to fluctuations in the prevailing levels of market interest rates. Czech Koruna 1,253 - - 1,253 Euro 3,176 - - 3,176 Hong Kong Dollar 43,802 - - 43,802 Credit Risk Indian Rupee 14,819 - 70 14,889 The Fund enters into foreign exchange contracts to buy and sell currencies for the Indonesian Rupiah 9,189 - - 9,189 Malaysian Ringgit 4,569 - - 4,569 purpose of settling foreign securities transactions. These are short term spot Mexican Peso 14,036 - - 14,036 settlements carried out with approved counterparties. The exposure to credit risk New Taiwan Dollar 14,550 - 23 14,573 on these contracts is considered minimal as the transactions are settled and paid New Turkish Lira 1,015 - - 1,015 for upon delivery. Philippine Peso 3,393 - - 3,393 Polish Zloty - - 2 2 Pound Sterling 2,175 - - 2,175 South African Rand 3,471 - - 3,471 SECURITIES LENDING South Korean Won 25,318 - - 25,318 The aggregate market value of all securities loaned by a fund acannot exceed Thailand Baht 9,488 - - 9,488 50% of the net assets of the applicable Fund. The Funds receive collateral of at U.S. Dollar 53,244 (54) 142 53,332 least 102% of the value of the securties on loan. Collateral may comprise of Yuan Renminbi 962 - - 962 obligations of or guaranteed by the Government of Canada, or a province thereof, Total 219,040 (54) 268 219,254 or by the United States government or its agencies.

% of Net Assets 99.3 - 0.1 99.4 As at December 31, 2020 and 2019 the fair value of securities on loan and collateral received was $Nil.

OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement.

The notes at the back of this document are an integral part of these ﬁnancial statements. 39 BRANDES GLOBAL EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 280,368 $ 321,141 Cash 1,814 6,795 Receivable for redeemable unit subscriptions 437 225 Receivable from securities sold 1,455 - Dividends and accrued interest receivable 795 737 Receivable for open foreign currency spot or forward contracts 234 60 285,103 328,958

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 349 - Payable for redeemable unit redemptions 624 321 Payable for open foreign currency spot or forward contracts 47 42 1,020 363

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 284,083 $ 328,595 Cost of investments 272,506 299,745

Net assets attributable to holders of redeemable units, Series A $ 182,475 $ 224,377 Number of redeemable units outstanding, Series A 13,186 15,784 Net assets attributable to holders of redeemable units per unit, Series A 13.84 14.22 Net assets attributable to holders of redeemable units per unit, Series A (USD) 10.87 10.95

Net assets attributable to holders of redeemable units, Series D $ 2,699 $ 3,208 Number of redeemable units outstanding, Series D 213 247 Net assets attributable to holders of redeemable units per unit, Series D 12.67 13.00

Net assets attributable to holders of redeemable units, Series F $ 76,003 $ 86,068 Number of redeemable units outstanding, Series F 5,331 5,883 Net assets attributable to holders of redeemable units per unit, Series F 14.26 14.63 Net assets attributable to holders of redeemable units per unit, Series F (USD) 11.20 11.27

Net assets attributable to holders of redeemable units, Series I $ 10,407 $ 10,943 Number of redeemable units outstanding, Series I 682 700 Net assets attributable to holders of redeemable units per unit, Series I 15.27 15.64

Net assets attributable to holders of redeemable units, Series AH $ 5,047 $ 1,818 Number of redeemable units outstanding, Series AH 490 169 Net assets attributable to holders of redeemable units per unit, Series AH 10.30 10.75

Net assets attributable to holders of redeemable units, Series FH $ 7,452 $ 2,181 Number of redeemable units outstanding, Series FH 699 197 Net assets attributable to holders of redeemable units per unit, Series FH 10.66 11.05

Net assets attributable to holders of redeemable units, Series IH $ - $ - Number of redeemable units outstanding, Series IH - - Net assets attributable to holders of redeemable units per unit, Series IH 10.75 11.20

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

40 BRANDES GLOBAL EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 8,513 $ 12,288 Interest for distribution purposes 8 27 Management Fee Rebates income 143 162 Net realized gain (loss) on sale of investments 1,305 10,520 Net change in unrealized appreciation (depreciation) of investments (13,534) 19,179 Net gain (loss) on investments (3,565) 42,176

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 112 (203) Net change in unrealized appreciation (depreciation) of foreign exchange contracts 169 423 Net gain (loss) on derivatives 281 220

Securities lending 10 51 Other income 692 2,676 Net realized gain (loss) on foreign currencies (80) (18) Net change in unrealized appreciation (depreciation) of foreign currencies 17 (157) Total net income (loss) (2,645) 44,948

EXPENSES (note 6) Management fees 4,472 5,649 Legal - 7 Audit 37 36 Interest expense 1 2 Independent review committee 15 15 Custody and fund accounting 128 120 Filing fees 25 26 Unitholder reporting 26 31 Other expenses - 1 Administration and transfer agent fees 533 626 Foreign withholding taxes 838 1,272 Transaction costs (note 3) 119 63 6,194 7,848 Expenses absorbed (62) (1) Total expenses net of absorption 6,132 7,847

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (8,402) $ 24,941 Series D (96) 264 Series F (2,001) 9,526 Series I 3 1,395 Series AH 983 595 Series FH 736 380 Series IH - - TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (8,777) 37,101

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.59) $ 1.47 Series D (0.42) 1.10 Series F (0.36) 1.64 Series I - 1.80 Series AH 2.32 1.92 Series FH 1.72 1.79 Series IH (0.16) 1.86

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

41 BRANDES GLOBAL EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (8,402) 24,941 (96) 264 (2,001) 9,526

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (1,496) (4,380) (40) (77) (1,357) (2,484) (1,496) (4,380) (40) (77) (1,357) (2,484)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 4,791 5,062 11 14 7,494 13,253 Reinvested distributions to holders of redeemable units 1,488 4,367 40 77 1,315 2,374 Net proceeds/(payments) from/for redeemable units transferred in/(out) (3,756) (5,740) - 2,521 1,766 3,240 Payments for redeemable units redeemed (34,527) (44,545) (424) (251) (17,282) (15,603) (32,004) (40,856) (373) 2,361 (6,707) 3,264

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (41,902) (20,295) (509) 2,548 (10,065) 10,306

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 182,475 $ 224,377 $ 2,699 $ 3,208 $ 76,003 $ 86,068

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 15,783,564 18,784,265 246,809 55,579 5,883,477 5,662,630 Redeemable units issued for cash 378,273 370,196 917 1,110 570,693 930,996 Redeemable units issued for reinvested distributions 109,582 305,400 3,200 5,856 93,266 161,276 Net redeemable units transferred in/(out) (332,649) (419,868) - 203,828 133,826 228,083 Redeemable units redeemed (2,753,009) (3,256,429) (37,843) (19,564) (1,350,585) (1,099,508) BALANCE, END OF YEAR 13,185,761 15,783,564 213,083 246,809 5,330,677 5,883,477

Amounts in thousands (except for number of units) For the years ended December 31, SERIES I SERIES AH SERIES FH 2020 2019 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 10,943 $ 12,047 $ 1,818 $ 5,995 $ 2,181 $ 2,450

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 3 1,395 983 595 736 380

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (282) (480) (16) (68) (57) (69) (282) (480) (16) (68) (57) (69)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued - - 657 51 4,920 19 Reinvested distributions to holders of redeemable units 282 480 16 68 56 69 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - 1,990 (62) - 39 Payments for redeemable units redeemed (539) (2,499) (401) (4,761) (384) (707) (257) (2,019) 2,262 (4,704) 4,592 (580)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (536) (1,104) 3,229 (4,177) 5,271 (269)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 10,407 $ 10,943 $ 5,047 $ 1,818 $ 7,452 $ 2,181

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 699,764 838,840 169,160 624,654 197,417 252,407 Redeemable units issued for cash - - 88,699 5,037 540,004 1,778 Redeemable units issued for reinvested distributions 18,661 30,482 1,625 6,355 5,387 6,230 Net redeemable units transferred in/(out) - - 273,484 (5,999) - 3,749 Redeemable units redeemed (36,907) (169,558) (42,843) (460,887) (43,527) (66,747) BALANCE, END OF YEAR 681,518 699,764 490,125 169,160 699,281 197,417

42 BRANDES GLOBAL EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (CONTINUED)

Amounts in thousands (except for number of units) For the years ended December 31, SERIES IH FUND TOTAL 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ $- - $ 328,595 $ 341,586

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS - - (8,777) 37,101

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - - (3,248) (7,558) - - (3,248) (7,558)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued - - 17,873 18,399 Reinvested distributions to holders of redeemable units - - 3,197 7,435 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - (2) Payments for redeemable units redeemed - - (53,557) (68,366) - - (32,487) (42,534)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR - - (44,512) (12,991)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ $- - $ 284,083 $ 328,595

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 34 33 Redeemable units issued for cash - - Redeemable units issued for reinvested distributions 1 1 Net redeemable units transferred in/(out) - - Redeemable units redeemed - - BALANCE, END OF YEAR 35 34

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

43 BRANDES GLOBAL EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (8,777) $ 37,101

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (1,305) (10,520) Unrealized (appreciation) depreciation on foreign cash 11 16 Net change in unrealized (appreciation) depreciation of investments 13,534 (19,179) Net change in unrealized (appreciation) depreciation of foreign exchange contracts (169) (423) Purchase of investments (55,598) (18,878) Proceeds from sale of investments 83,036 61,823 30,732 49,940

CHANGE IN NON-CASH WORKING CAPITAL (58) 83

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 17,661 18,738 Distributions to holders of redeemable units (51) (123) Amounts paid on redemption of redeemable units (53,254) (68,671) (35,644) (50,056) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH (11) (16)

NET INCREASE (DECREASE) IN CASH (4,981) (49)

CASH—BEGINNING OF YEAR 6,795 6,844

CASH—END OF YEAR 1,814 6,795

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 7,617 11,099 Interest 8 27

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

44 BRANDES GLOBAL EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS COMMON STOCK Health Care Providers & Services Aerospace & Defense 74,054 Cardinal Health, Inc. $ 5,608 $ 5,051 1.8 1,157,270 Embraer SA $ 10,902 $ 2,508 0.9 18,636 Cigna Corporation 3,770 4,941 1.7 16,821 General Dynamics Corporation 3,129 3,188 1.1 50,243 CVS Health Corporation 3,966 4,370 1.5 58,789 Textron Inc. 2,208 3,619 1.3 23,794 HCA Healthcare, Inc. 2,613 4,984 1.8 16,239 9,315 3.3 12,631 Laboratory Corporation of America Holdings 2,387 3,274 1.2 Air Freight & Logistics 25,692 McKesson Corporation 4,471 5,691 2.0 11,297 FedEx Corporation 2,168 3,735 1.3 22,815 28,311 10.0

Auto Components Health Care Technology 14,302 Hyundai Mobis Co., Ltd. 3,482 4,287 1.5 131,973 Change Healthcare, Inc. 1,679 3,135 1.1

Automobiles Hotels, Restaurants & Leisure 99,900 Honda Motor Co., Ltd. 3,697 3,589 1.3 3,210,900 Genting Berhad 6,940 4,542 1.6 24,847 Hyundai Motor Co., Ltd. 4,418 5,609 2.0 44,500 Nissan Motor Co., Ltd. 447 307 0.1 Household Durables 8,562 9,505 3.4 24,491 Mohawk Industries, Inc. 2,721 4,396 1.5

Beverages Insurance 9,546 Fomento Economico Mexicano, SAB de 85,806 American International Group, Inc. 5,678 4,137 1.5 CV (FEMSA) ADR 675 921 0.3 125,227 Old Republic International Corporation 2,538 3,144 1.1 8,216 7,281 2.6 Capital Markets 44,675 State Street Corporation 3,105 4,141 1.5 Internet & Direct Marketing Retail 76,147 The Bank of New York 11,800 Alibaba Group Holding Limited ADR 3,930 3,498 1.2 Mellon Corporation 1,909 4,115 1.4 375,031 UBS Group AG 7,265 6,722 2.4 IT Services 12,279 14,978 5.3 33,783 Amdocs Limited 2,477 3,052 1.1

Chemicals Media 82,704 Corteva, Inc. 2,686 4,078 1.4 67,638 Comcast Corporation Cl. A 3,458 4,514 1.6 98,017 Publicis Groupe SA 6,681 6,201 2.2 Commercial Banks 405,207 WPP PLC 8,456 5,589 2.0 911,687 Barclays PLC 3,545 2,328 0.8 18,595 16,304 5.8 319,381 Credit Suisse Group AG 7,403 5,249 1.9 111,940 Erste Group Bank AG 3,071 4,341 1.5 Multi-Utilities 7,848 The PNC Financial Services Group, Inc. 629 1,489 0.5 342,389 Engie SA 7,074 6,681 2.4 46,091 Truist Financial Corporation 2,431 2,813 1.0 128,209 Wells Fargo & Company 8,642 4,928 1.7 Oil, Gas & Consumable Fuels 25,721 21,148 7.4 1,252,354 BP PLC 6,391 5,501 1.9 266,477 Eni SPA 6,155 3,541 1.3 Communications Equipment 256,891 Repsol, SA 4,473 3,294 1.2 714,781 Nokia OYJ 4,967 3,514 1.2 256,891 Repsol, SA, Rights 115 112 - 99,429 Total SE 5,111 5,463 1.9 Construction Materials 22,245 17,911 6.3 73,282 CRH PLC 2,509 3,942 1.4 52,271 HeidelbergCement AG 4,663 4,954 1.7 Pharmaceuticals 7,172 8,896 3.1 336,591 GlaxoSmithKline PLC 8,828 7,840 2.8 47,623 Merck & Co., Inc. 3,409 4,961 1.7 Diversified Financial Services 101,212 Pfizer Inc. 3,131 4,745 1.7 192,938 Bank of America Corporation 3,586 7,447 2.6 63,076 Sanofi 6,244 7,782 2.7 113,703 Citigroup Inc. 3,246 8,929 3.1 21,612 25,328 8.9 18,753 JPMorgan Chase & Co. 2,437 3,035 1.1 9,269 19,411 6.8 Semiconductors & Semiconductor Equipment 25,548 Applied Materials, Inc. 1,522 2,808 1.0 Electrical Equipment 40,986 Emerson Electric Co. 2,592 4,195 1.5 Specialty Retail 22,253 Schneider Electric SE 1,804 4,094 1.4 960,010 Kingfisher PLC 4,875 4,515 1.6 4,396 8,289 2.9 Technology Hardware, Storage & Peripherals Energy Equipment & Services 12,437 Samsung Electronics Co., Ltd. 346 1,183 0.4 140,099 Halliburton Company 3,703 3,372 1.2 72,656 Samsung Electronics Co., Ltd. Preferred 1,378 6,277 2.2 1,724 7,460 2.6 Equity Real Estate Investment Trusts (REITs) 3,243,751 Fibra Uno Administracion SA de CV 5,840 4,674 1.6

Food & Staples Retailing 120,883 Carrefour SA 3,498 2,635 0.9 1,186,389 J Sainsbury PLC 5,955 4,642 1.6 1,246,486 Tesco PLC 6,086 5,007 1.8 938,292 WM Morrison Supermarkets PLC 3,956 2,890 1.0 19,495 15,174 5.3

Food Products 27,922 Ingredion Incorporated 2,682 2,798 1.0

45 BRANDES GLOBAL EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS Tobacco 240,997 Imperial Brands PLC $ 10,848 $ 6,434 2.3 30,747 KT&G Corporation 3,529 2,998 1.1 14,377 9,432 3.4

Wireless Telecommunications Services 223,000 China Mobile Limited 2,368 1,619 0.6

Total Investments 272,506 280,368 98.7 Foreign Exchange Contracts (a) 187 0.1 Other Assets Less Liabilities 3,528 1.2 Net Assets Attributable to Holders of Redeemable Units 284,083 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 201 GBP 116 1.73743 $ - Jan 5, 2021 CAD 1,458 JPY 117,965 0.01236 3 Jan 15, 2021 CAD 532 CHF 368 1.42266 to 1.45652 4 Jan 15, 2021 CAD 2,413 EUR 1,545 1.53818 to 1.57087 10 Jan 15, 2021 CAD 2,188 GBP 1,272 1.68831 to 1.74194 (27) Jan 15, 2021 CAD 93 HKD 546 0.16535 to 0.17125 3 Jan 15, 2021 CAD 364 JPY 29,052 0.01222 to 0.01273 6 Jan 15, 2021 CAD 5,984 USD 4,540 1.27914 to 1.32592 202 Jan 15, 2021 CHF 11 CAD 16 0.68293 to 0.68454 - Jan 15, 2021 EUR 97 CAD 151 0.64052 to 0.64111 - Jan 15, 2021 GBP 61 CAD 106 0.57576 to 0.58032 1 Jan 15, 2021 HKD 118 CAD 20 5.82029 to 6.27273 (1) Jan 15, 2021 JPY 9,695 CAD 122 77.77778 to 79.62471 (2) Jan 15, 2021 USD 198 CAD 264 0.74842 to 0.75060 (12) $ 187 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; —State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

46 BRANDES GLOBAL EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FAIR VALUE MEASUREMENTS Essentially all of the assets and liabilities of the Fund are ﬁnancial instruments. Below is a summary of the inputs used as at December 31, 2020 and December These ﬁnancial instruments comprise the following: 31, 2019 in valuing the Fund’s investments carried at fair values.

The Fund uses derivatives such as forward contracts on the portions of the Fund Portfolio by Country Exposure that are attributable to the Hedged Series of units to hedge against currency DEC. 31 DEC. 31 risk exposure. 2020 (%) 2019 (%) Equities Market Price Risk Austria 1.5 1.5 As at December 31, 2020, if the Fund’s benchmark (MSCI World Index and MSCI Brazil 0.9 2.7 China 0.6 1.2 World Index (Hedged)) increased or decreased by 10%, with all other variables Denmark 1.7 - held constant, the net assets of the Fund would have increased or decreased, Finland 1.2 1.3 respectively, by approximately $31.3 million (December 31, 2019—$31.0 France 11.5 12.7 million), or 11% (December 31, 2019—9.4%) of total net assets. This impact is Hong Kong 1.2 - estimated based on the historical correlation between the return of Series I units Ireland 1.4 1.6 of the Fund as compared to the return of the Fund’s benchmark. In practice, the Italy 1.3 2.7 historical correlation may not be representative of the future correlation and, Japan 1.4 2.7 accordingly, the impact on net assets could be materially different. Malaysia 1.6 1.5 Mexico 1.9 2.2 Netherlands - 1.5 Russia - 0.5 South Korea 7.2 6.1 Spain 1.2 1.4 Switzerland 4.3 3.9 United Kingdom 15.8 18.5 United States 44.0 35.7 Total investments 98.7 97.7 Foreign exchange contracts, net 0.1 - Total ﬁnancial instruments at fair value 98.8 97.7 Total other assets less liabilities at cost or amortized cost 1.2 2.3 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0

The notes at the back of this document are an integral part of these ﬁnancial statements. 47 BRANDES GLOBAL EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Foreign Currency Risk DECEMBER 31, 2019 The tables below indicate the currencies to which the unhedged series of the Forward Fund had signiﬁcant exposure on its ﬁnancial instruments as at December 31, Foreign Currency 2020 and December 31, 2019 in Canadian dollar terms. Contracts outstanding DECEMBER 31, 2020 OTHER NET in Hedged INVESTMENTS CASH OTHER NET TOTAL INVESTMENTS CASH ASSETS Series TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) CURRENCY ($000) ($000) ($000) ($000) ($000) Brazilian Real 2,398 - - 2,398 Brazilian Real 109 - - - 109 Euro 50,298 1 193 50,492 Euro 784 - 1 (782) 3 Hong Kong Dollar 1,548 - - 1,548 Hong Kong Dollar 48 - - (47) 1 Japanese Yen 3,725 - 19 3,744 Japanese Yen 107 - 1 (110) (2) Malaysian Ringgit 4,342 - - 4,342 Malaysian Ringgit 60 - - - 60 Mexican Peso 4,468 - - 4,468 Mexican Peso 87 - - - 87 Pound Sterling 46,546 192 (28) 46,710 Pound Sterling 803 3 (1) (812) (7) South Korean Won 19,458 - - 19,458 South Korean Won 243 - - - 243 Swiss Franc 11,444 - 137 11,581 Swiss Franc 156 - 2 (156) 2 U.S. Dollar 123,805 955 (189) 124,571 U.S. Dollar 1,510 21 5 (1,471) 65 Total 268,032 1,148 132 269,312 Total 3,907 24 8 (3,378) 561 % of Net Assets 94.3 0.4 - 94.7 % of Net Assets 1.2 - - (1.0) 0.2

As at December 31, 2020, if the Canadian dollar had strengthened or weakened DECEMBER 31, 2019 by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all INVESTMENTS CASH OTHER NET TOTAL other variables held constant, the Fund’s net assets would have decreased or CURRENCY ($000) ($000) ASSETS ($000) ($000) increased, respectively, by approximately $5.4 million (December 31, Brazilian Real 8,882 - - 8,882 2019—$6.4 million), or 1.9% (December 31, 2019—1.9%) of total net assets. Euro 63,642 - 93 63,735 The Fund consists of both Unhedged and Hedged Series. Exposure to currency Hong Kong Dollar 3,931 - - 3,931 impact would only affect the Unhedged Series. Approximately 95.6% (December Japanese Yen 8,663 - 41 8,704 31, 2019—98.8%) of the Fund invested is in the Unhedged Series of units which Malaysian Ringgit 4,905 - - 4,905 has not been hedged with forward exchange contracts. The remaining 4.4% Mexican Peso 7,021 - - 7,021 (December 31, 2019—1.2%) of the Fund is invested in the Hedged Series of Pound Sterling 65,199 237 (62) 65,374 South Korean Won 19,761 - - 19,761 units which has been hedged with forward exchange contracts and therefore is Swiss Franc 12,686 - 132 12,818 not subject to significant currency risk. In practice, the actual results may differ U.S. Dollar 122,544 1,724 417 124,685 from this sensitivity analysis and the difference could be material. Total 317,234 1,961 621 319,816 % of Net Assets 96.5 0.6 0.2 97.3 Interest Rate Risk The substantial majority of the Fund’s financial assets are equity shares which do The following tables summarize the foreign currency risk associated with the not pay interest. As a result, the Fund is not subject to significant amounts of risk hedged series which is offset by Forward Foreign Currency Contracts. due to fluctuations in the prevailing levels of market interest rate.

DECEMBER 31, 2020 Forward Credit Risk Foreign The Fund enters into foreign exchange contracts to buy and sell currencies for the Currency purpose of settling foreign securities transactions. These are short term spot Contracts outstanding settlements carried out with approved counterparties. The exposure to credit risk OTHER NET in Hedged on these contracts is considered minimal as the transactions are settled and paid INVESTMENTS CASH ASSETS Series TOTAL for upon delivery. CURRENCY ($000) ($000) ($000) ($000) ($000) Brazilian Real 110 - - - 110 For the Hedged series, the Fund uses forward contracts to hedge the foreign Euro 2,315 - 9 (2,252) 72 currency exposure on that portion of the Fund associated with the Hedged Series Hong Kong Dollar 71 - - (70) 1 of units. All of these contracts are with an approved counterparty. Japanese Yen 171 - 1 (239) (67) Malaysian Ringgit 200 - - - 200 Mexican Peso 206 - - - 206 Pound Sterling 2,142 9 (1) (2,108) 42 SECURITIES LENDING South Korean Won 896 - - - 896 The aggregate market value of all securities loaned by a fund cannot exceed 50% Swiss Franc 527 - 6 (513) 20 of the net assets of the applicable Fund. The Funds receive collateral of at least U.S. Dollar 5,698 44 (9) (5,530) 203 102% of the value of the securities on loan. Collateral may comprise of obligations Total 12,336 53 6 (10,712) 1,683 of or guaranteed by the Government of Canada, or a province thereof, or by the % of Net Assets 4.3 - - (3.8) 0.5 United States government or its agencies. As at December 31, 2020 and 2019, the fair value of securities on loan and collateral received was $Nil.

Reconciliation Between Gross and Net Income from Securities Lending

DECEMBER 31, 2020 % OF GROSS ($000) INCOME Gross Income from Securities Lending 15 100.0 Withholding Tax - - Fees Paid to Securities Lending Agent* 5 33.3 Total Deductions 5 33.3 Net Income from Securities Lending, net of withholding tax 10 66.7

48 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES GLOBAL EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 % OF GROSS ($000) INCOME Gross Income from Securities Lending 73 100.0 Withholding Tax - - Fees Paid to Securities Lending Agent* 22 30.1 Total Deductions 22 30.1 Net Income from Securities Lending, net of withholding tax 51 69.9 *All securities lending agent fees were paid to State Street Bank & Trust Company, Canada.

OFFSETTING OF FINANCIAL INSTRUMENTS The fund enters into various master netting agreements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. The following table presents ﬁnancial instruments that are offset, or subject to enforceable master netting agreements or other similar agreements but that are not offset, as at December 31, 2020 and December 31, 2019. The ‘Net’ column shows what the impact on the Fund’s Statements of Financial Position would be if all set-off rights were exercised.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 234 (47) - 187 Payable for open foreign currency spot or exchange contracts (47) 47 - -

DECEMBER 31, 2019 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 60 (42) - 18 Payable for open foreign currency spot or exchange contracts (42) 42 - -

The notes at the back of this document are an integral part of these ﬁnancial statements. 49 BRANDES GLOBAL OPPORTUNITIES FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 217,308 $ 294,689 Cash 5,701 8,980 Receivable for redeemable unit subscriptions 604 773 Dividends and accrued interest receivable 522 637 224,135 305,079

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 61 - Payable for redeemable unit redemptions 1,084 618 1,145 618

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 222,990 $ 304,461 Cost of investments 255,507 311,095

Net assets attributable to holders of redeemable units, Series A $ 105,856 $ 142,744 Number of redeemable units outstanding, Series A 7,193 9,236 Net assets attributable to holders of redeemable units per unit, Series A 14.72 15.45 Net assets attributable to holders of redeemable units per unit, Series A (USD) 11.56 11.90

Net assets attributable to holders of redeemable units, Series F $ 116,793 $ 161,373 Number of redeemable units outstanding, Series F 8,237 10,799 Net assets attributable to holders of redeemable units per unit, Series F 14.18 14.94 Net assets attributable to holders of redeemable units per unit, Series F (USD) 11.13 11.51

Net assets attributable to holders of redeemable units, Series I $ 341 $ 344 Number of redeemable units outstanding, Series I 25 24 Net assets attributable to holders of redeemable units per unit, Series I 13.69 14.29

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

50 BRANDES GLOBAL OPPORTUNITIES FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 7,614 $ 12,725 Interest for distribution purposes 4 4 Management Fee Rebates income 305 379 Net realized gain (loss) on sale of investments 913 4,496 Net change in unrealized appreciation (depreciation) of investments (21,793) 16,563 Net gain (loss) on investments (12,957) 34,167

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 48 (64) Net gain (loss) on derivatives 48 (64)

Securities lending 12 34 Other income 123 634 Net realized gain (loss) on foreign currencies 185 (53) Net change in unrealized appreciation (depreciation) of foreign currencies 39 (353) Total net income (loss) (12,550) 34,365

EXPENSES (note 6) Management fees 3,787 5,085 Legal - 6 Audit 33 35 Interest expense 4 2 Independent review committee 13 15 Custody and fund accounting 136 147 Filing fees 22 30 Unitholder reporting 22 28 Other expenses - 6 Administration and transfer agent fees 474 591 Foreign withholding taxes 705 1,359 Capital gain tax 1 - Transaction costs (note 3) 161 156 5,358 7,460 Expenses absorbed (54) (9) Total expenses net of absorption 5,304 7,451

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (8,074) $ 11,765 Series F (9,777) 15,115 Series I (3) 34 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (17,854) 26,914

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.97) $ 1.21 Series F (1.04) 1.35 Series I (0.12) 1.49

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

51 BRANDES GLOBAL OPPORTUNITIES FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (8,074) 11,765 (9,777) 15,115 (3) 34

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (1,033) (2,315) (2,350) (4,251) (9) (12) Distribution from net realized gains on portfolio investments (745) (1,096) (1,157) (1,155) (2) (3) (1,778) (3,411) (3,507) (5,406) (11) (15)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 10,485 14,791 20,427 23,435 - - Reinvested distributions to holders of redeemable units 1,766 3,369 3,403 5,294 11 15 Net proceeds/(payments) from/for redeemable units transferred in/(out) (4,175) (3,692) 4,175 3,692 - - Payments for redeemable units redeemed (35,112) (28,568) (59,301) (45,130) - - (27,036) (14,100) (31,296) (12,709) 11 15

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (36,888) (5,746) (44,580) (3,000) (3) 34

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 105,856 $ 142,744 $ 116,793 $ 161,373 $ 341 $ 344

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 9,236,188 10,183,486 10,799,208 11,668,347 24,074 23,018 Redeemable units issued for cash 786,135 976,146 1,537,074 1,594,381 - - Redeemable units issued for reinvested distributions 123,192 215,987 244,900 350,667 837 1,056 Net redeemable units transferred in/(out) (306,968) (244,101) 315,771 251,163 - - Redeemable units redeemed (2,645,950) (1,895,330) (4,660,220) (3,065,350) - - BALANCE, END OF YEAR 7,192,597 9,236,188 8,236,733 10,799,208 24,911 24,074

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 304,461 $ 313,173

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (17,854) 26,914

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (3,392) (6,578) Distribution from net realized gains on portfolio investments (1,904) (2,254) (5,296) (8,832)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 30,912 38,226 Reinvested distributions to holders of redeemable units 5,180 8,678 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (94,413) (73,698) (58,321) (26,794)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (81,471) (8,712)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 222,990 $ 304,461

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

52 BRANDES GLOBAL OPPORTUNITIES FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (17,854) $ 26,914

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (913) (4,496) Unrealized (appreciation) depreciation on foreign cash 1 29 Net change in unrealized (appreciation) depreciation of investments 21,793 (16,563) Purchase of investments (42,021) (45,836) Proceeds from sale of investments 98,583 71,705 59,589 31,753

CHANGE IN NON-CASH WORKING CAPITAL 115 581

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 31,081 38,084 Distributions to holders of redeemable units (116) (154) Amounts paid on redemption of redeemable units (93,947) (73,787) (62,982) (35,857) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH (1) (29)

NET INCREASE (DECREASE) IN CASH (3,279) (3,552)

CASH—BEGINNING OF YEAR 8,980 12,532

CASH—END OF YEAR 5,701 8,980

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 7,024 11,947 Interest 4 4

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

53 BRANDES GLOBAL OPPORTUNITIES FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Food & Staples Retailing 377,399 Embraer SA ADR $ 10,389 $ 3,273 1.5 205,968 Carrefour SA $ 5,229 $ 4,490 2.0 59,200 Companhia Brasileira de Distribuicao 948 1,090 0.5 Auto Components 907,893 J Sainsbury PLC 3,975 3,552 1.6 5,649 Hyundai Mobis Co., Ltd. 1,505 1,693 0.8 63,100 Mitsubishi Shokuhin Co., Ltd. 2,093 2,227 1.0 131,000 Tachi-S Co., Ltd. 2,279 1,900 0.9 558,272 Tesco PLC 2,058 2,243 1.0 3,784 3,593 1.7 927,287 WM Morrison Supermarkets PLC 3,446 2,856 1.3 17,749 16,458 7.4 Automobiles 119,100 Honda Motor Co., Ltd. 4,490 4,279 1.9 Food Products 20,363 Hyundai Motor Company Preferred 2,069 2,118 1.0 17,647 Savencia SA 1,648 1,658 0.7 328,300 Nissan Motor Co., Ltd. 3,649 2,266 1.0 10,208 8,663 3.9 Health Care Equipment & Supplies 22,223 Dragerwerk AG & Co. KGaA Preferred 1,652 2,190 1.0 Beverages 28,395 Fomento Economico Mexicano, SAB de Health Care Providers & Services CV (FEMSA) ADR 2,052 2,740 1.2 41,310 Cardinal Health, Inc. 2,839 2,818 1.3 9,708 Lotte Chilsung Beverage Co., Ltd. 1,903 1,236 0.6 13,976 McKesson Corporation 2,603 3,095 1.4 3,955 3,976 1.8 5,442 5,913 2.7

Biotechnology Health Care Technology 360,909 PDL BioPharma Inc. 1,063 1,138 0.5 120,688 Change Healthcare, Inc. 1,443 2,867 1.3

Capital Markets Hotels, Restaurants & Leisure 32,813 State Street Corporation 2,624 3,041 1.4 2,508,000 Genting Berhad 4,552 3,548 1.6 230,363 UBS Group AG 4,201 4,129 1.8 6,825 7,170 3.2 Household Durables 14,006,548 Consorcio ARA, SAB de CV Series U 5,868 3,425 1.5 Commercial Banks 199,249 Urbi, Desarrollos Urbanos, SAB de CV 2,194 127 0.1 149,790 Banco Latinoamericano de Comercio 8,062 3,552 1.6 Exterior SA Cl. E 3,260 3,020 1.4 372,007 Bankinter SA 1,924 2,568 1.2 Insurance 774,909 Barclays PLC 2,655 1,979 0.9 56,203 American International Group, Inc. 3,695 2,710 1.2 233,183 Credit Suisse Group AG 4,611 3,832 1.7 273,929 Nova Ljubljanska banka d.d. GDR 4,354 3,834 1.7 Machinery 821,192 Sberbank of Russia PJSC 2,645 3,832 1.7 98,000 China Yuchai International Limited 1,748 2,039 0.9 87,960 Wells Fargo & Company 5,087 3,381 1.5 24,536 22,446 10.1 Media 472,596 Atresmedia Corporacion de Medios de Commercial Services & Supplies Comunicacion, SA 4,320 2,117 1.0 1,706,581 De La Rue PLC 7,304 4,986 2.2 203,400 Fuji Media Holdings, Inc. 3,615 2,764 1.2 5,644,428 Mitie Group PLC 8,173 4,028 1.8 89,388 Publicis Groupe SA 6,073 5,655 2.5 15,477 9,014 4.0 308,369 WPP PLC 6,283 4,253 1.9 20,291 14,789 6.6 Communications Equipment 65,030 NETGEAR, Inc. 2,533 3,365 1.5 Mortgage Real Estate Investment Trusts (REITs) 192,689 Sierra Wireless Inc. 3,756 3,585 1.6 1,457,150 Macquarie Mexico Real Estate 6,289 6,950 3.1 Management SA de CV 2,291 2,621 1.2

Construction Materials Multiline Retail 360,588 Cemex SAB de CV ADR 2,974 2,374 1.1 701,120 Marks & Spencer Group PLC 3,773 1,655 0.7

Diversified Financial Services Multi-Utilities 62,221 Citigroup Inc. 3,362 4,886 2.2 209,966 Engie SA 4,312 4,097 1.8 4,886,000 First Pacific Company Limited 4,421 2,001 0.9 Oil, Gas & Consumable Fuels 7,783 6,887 3.1 704,436 BP PLC 4,191 3,094 1.4 192,792 Eni SPA 3,977 2,562 1.1 Diversified Telecommunications Services 467,300 Petroleo Brasileiro SA - 1,442,329 Magyar Telekom Telecommunications Petrobras Preferred 2,433 3,231 1.5 PLC 2,710 2,350 1.1 5,348,476 Surgutneftegas PJSC Preferred 3,818 3,843 1.7 3,051,575 Sistema PJSFC 692 1,513 0.7 5,342,918 Telecom Italia SPA Savings Shares 4,802 3,544 1.6 14,419 12,730 5.7 301,800 Telefonica Brasil SA 4,143 3,456 1.5 Personal Products 12,347 10,863 4.9 86,734 Edgewell Personal Care Company 4,572 3,820 1.7 Electronic Equipment, Instruments & Components Pharmaceuticals 1,988,000 PAX Global Technology Limited 1,065 2,253 1.0 166,552 GlaxoSmithKline PLC 4,250 3,879 1.7 30,727 Sanofi 3,297 3,791 1.7 Energy Equipment & Services 52,200 Taisho Pharmaceutical Holdings Co., 45,648 Halliburton Company 962 1,099 0.5 Ltd. 4,321 4,482 2.0 28,082 Taro Pharmaceutical Industries, Ltd. 2,064 2,626 1.2 Equity Real Estate Investment Trusts (REITs) 13,932 14,778 6.6 3,900,995 Fibra Uno Administracion SA de CV 7,437 5,621 2.5 318,166 Lar Espana Real Estate SOCIMI, SA 2,508 2,311 1.1 Real Estate Management & Development 9,945 7,932 3.6 642,006 LSL Property Services PLC 2,990 3,252 1.5

Specialty Retail 489,538 Kingﬁsher PLC 2,507 2,303 1.0

54 BRANDES GLOBAL OPPORTUNITIES FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS Technology Hardware, Storage & Peripherals 45,509 Samsung Electronics Co., Ltd. $ 1,711 $ 4,328 1.9

Textiles, Apparel & Luxury Goods 35,703 The Swatch Group AG Registered 1,948 2,398 1.1 236,300 TSI Holdings Company, Ltd. 1,711 601 0.2 3,659 2,999 1.3

Tobacco 138,687 Imperial Brands PLC 6,029 3,703 1.7 40,113 KT&G Corporation 4,515 3,911 1.7 10,544 7,614 3.4

Wireless Telecommunications Services 517,500 China Mobile Limited 6,913 3,756 1.7

Total Investments 255,507 217,308 97.5 Foreign Exchange Contracts (a) - - Other Assets Less Liabilities 5,682 2.5 Net Assets Attributable to Holders of Redeemable Units 222,990 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 116 GBP 67 1.73743 $ - Jan 5, 2021 EUR 39 CAD 62 0.64112 - $ - Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; —State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

55 BRANDES GLOBAL OPPORTUNITIES FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Portfolio by Country Exposure Essentially all of the assets and liabilities of the Fund are financial instruments. DEC. 31 DEC. 31 These financial instruments comprise the following: 2020 (%) 2019 (%) Equities Portfolio by Industry Exposure Brazil 5.0 7.2 DEC. 31 DEC. 31 Canada 1.6 1.1 2020 (%) 2019 (%) China 2.6 2.8 France 8.7 8.3 Equities Germany 1.0 1.8 Aerospace & Defense 1.5 3.1 Hong Kong 1.9 0.6 Auto Components 1.7 2.4 Hungary 1.1 1.0 Automobiles 3.9 4.2 Israel 1.2 - Beverages 1.8 0.4 Italy 2.7 2.8 Biotechnology 0.5 1.9 Japan 8.2 8.4 Capital Markets 3.2 2.9 Malaysia 1.6 1.1 Commercial Banks 10.1 9.1 Mexico 7.6 6.6 Commercial Services & Supplies 4.0 2.6 Netherlands - 0.7 Communications Equipment 3.1 2.0 Panama 1.4 1.5 Construction Materials 1.1 0.9 Russia 4.1 4.4 Diversified Financial Services 3.1 3.6 Slovenia 1.7 1.7 Diversified Telecommunications Services 4.9 6.0 South Korea 6.0 6.1 Electronic Equipment, Instruments & Components 1.0 - Spain 3.3 0.8 Energy Equipment & Services 0.5 1.5 Switzerland 4.6 3.5 Equity Real Estate Investment Trusts (REITs) 3.6 2.7 United Kingdom 18.7 17.9 Food & Staples Retailing 7.4 7.2 United States 14.5 18.5 Food Products 0.7 - Health Care Equipment & Supplies 1.0 1.8 Total investments 97.5 96.8 Health Care Providers & Services 2.7 3.6 Foreign exchange contracts, net - - Health Care Technology 1.3 - Total financial instruments at fair value 97.5 96.8 Hotels, Restaurants & Leisure 1.6 1.1 Total other assets less liabilities at cost or amortized cost 2.5 3.2 Household Durables 1.6 1.5 Insurance 1.2 0.9 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Machinery 0.9 2.0 Media 6.6 5.2 Mortgage Real Estate Investment Trusts (REITs) 1.2 1.5 Multiline Retail 0.7 0.9 FAIR VALUE MEASUREMENTS Multi-Utilities 1.8 1.9 Below is a summary of the inputs used as at December 31, 2020 and December Oil, Gas & Consumable Fuels 5.7 5.0 31, 2019 in valuing the Fund’s investments carried at fair values. Personal Products 1.7 1.4 Pharmaceuticals 6.6 8.2 DECEMBER 31, 2020 Real Estate Management & Development 1.5 2.5 QUOTED PRICES SIGNIFICANT Semiconductors & Semiconductor Equipment - 2.2 IN ACTIVE OTHER SIGNIFICANT Specialty Retail 1.0 1.5 MARKETS FOR OBSERVABLE UNOBSERVABLE Textiles, Apparel & Luxury Goods 1.3 0.5 IDENTICAL INPUTS INPUTS Technology Hardware, Storage & Peripherals 1.9 - ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Tobacco 3.4 2.5 ($000) ($000) ($000) ($000) Wireless Telecommunications Services 1.7 2.1 Equities 80,870 136,438 - 217,308 Total investments 97.5 96.8 Total Investments 80,870 136,438 - 217,308 Foreign exchange contracts, net - - Foreign Exchange Total financial instruments at fair value 97.5 96.8 Contracts, Net - - - - Total other assets less liabilities at cost or amortized cost 2.5 3.2 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 128,886 165,803 - 294,689 Total Investments 128,886 165,803 - 294,689 Foreign Exchange Contracts, Net - - - -

During the year ended December 31, 2020, $13.6 million were transferred from Level 1 to Level 2. During the year ended December 31, 2019, $1.1 million were transferred from Level 1 to Level 2 and $20.3 million were transferred from Level 2 to Level 1.

56 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES GLOBAL OPPORTUNITIES FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

FINANCIAL INSTRUMENTS RISKS Credit Risk The investment objective of the Brandes Global Opportunities Fund is to achieve The Fund enters into foreign exchange contracts to buy and sell currencies for the long-term capital appreciation by investing primarily in the equity securities of purpose of settling foreign securities transactions. These are short term spot both Canadian and non-Canadian issuers across the full market capitalization settlements carried out with approved counterparties. The exposure to credit risk spectrum at the time of purchase. on these contracts is considered minimal as the transactions are settled and paid for upon delivery. Market Price Risk As at December 31, 2020, if the Fund’s benchmark (MSCI All Country World SECURITIES LENDING Index) increased or decreased by 10%, with all other variables held constant, the The aggregate market value of all securities loaned by a fund cannot exceed 50% net assets of the Fund would have increased or decreased, respectively, by of the net assets of the applicable Fund. The Funds receive collateral of at least approximately $23.5 million (December 31, 2019—$25.6 million), or 10.6% 102% of the value of the securities on loan. Collateral may comprise of obligations (December 31, 2019—8.4%) of total net assets. In practice, the actual results of or guaranteed by the Government of Canada, or a province thereof, or by the may differ from this sensitivity analysis and the difference could be material. United States government or its agencies.

Foreign Currency Risk As at December 31, 2020 and 2019, the fair value of securities on loan and collateral received was $Nil. The tables below indicate the currencies to which the Fund had signiﬁcant exposure on its ﬁnancial instruments as at December 31, 2020 and December 31, 2019 in Canadian dollar terms, including the underlying principal of forward Reconciliation Between Gross and Net Income from Securities Lending exchange contracts, if any. DECEMBER 31, 2020 DECEMBER 31, 2020 % OF GROSS INVESTMENTS CASH OTHER NET TOTAL ($000) INCOME CURRENCY ($000) ($000) ASSETS ($000) ($000) Gross Income from Securities Lending 17 100.0 Brazilian Real 7,777 - 152 7,929 Withholding Tax - - Euro 38,815 - 117 38,932 Fees Paid to Securities Lending Agent* 5 29.4 Hong Kong Dollar 8,010 - - 8,010 Total Deductions 5 29.4 Hungarian Forint 2,350 - - 2,350 Japanese Yen 18,519 - 24 18,543 Net Income from Securities Lending, net Malaysian Ringgit 3,548 - - 3,548 of withholding tax 12 70.6 Mexican Peso 11,794 - - 11,794 Pound Sterling 41,783 116 4 41,903 South Korean Won 13,287 - - 13,287 DECEMBER 31, 2019 Swiss Franc 10,360 - 49 10,409 % OF GROSS U.S. Dollar 61,065 470 61 61,596 ($000) INCOME Total 217,308 586 407 218,301 Gross Income from Securities Lending 48 100.0 % of Net Assets 97.5 0.3 0.2 98.0 Withholding Tax - - Fees Paid to Securities Lending Agent* 14 29.2 Total Deductions 14 29.2 DECEMBER 31, 2019 Net Income from Securities Lending, net INVESTMENTS CASH OTHER NET TOTAL of withholding tax 34 70.8 CURRENCY ($000) ($000) ASSETS ($000) ($000) Brazilian Real 12,478 - 209 12,687 Euro 46,262 - 89 46,351 Hong Kong Dollar 8,258 - - 8,258 OFFSETTING OF FINANCIAL INSTRUMENTS Hungarian Forint 2,888 - - 2,888 The Fund does not enter into any enforceable master netting arrangement. Japanese Yen 25,658 - 39 25,697 Malaysian Ringgit 3,276 - - 3,276 Mexican Peso 17,213 - - 17,213 Pound Sterling 55,113 169 31 55,313 South Korean Won 18,374 - - 18,374 Swiss Franc 10,647 - - 10,647 U.S. Dollar 92,182 2,456 268 94,906 Total 292,349 2,625 636 295,610 % of Net Assets 96.0 0.9 0.2 97.1

As at December 31, 2020, if the Canadian dollar had strengthened or weakened by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all other variables held constant, the Fund’s net assets would have decreased or increased, respectively, by approximately $4.4 million (December 31, 2019—$5.9 million) or 2.0% (December 31, 2019—1.9%) of total net assets. In practice, the actual results may differ from this sensitivity analysis and the difference could be material.

Interest Rate Risk The substantial majority of the Fund’s financial assets are equity shares which do not pay interest. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates.

The notes at the back of this document are an integral part of these ﬁnancial statements. 57 BRANDES GLOBAL SMALL CAP EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 251,037 $ 218,257 Cash 4,290 16,838 Receivable for redeemable unit subscriptions 187 167 Receivable from securities sold 1,439 199 Dividends and accrued interest receivable 303 236 257,256 235,697

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 874 17 Payable for redeemable unit redemptions 906 322 Payable for open foreign currency spot or forward contracts 8 - 1,788 339

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 255,468 $ 235,358 Cost of investments 276,739 255,923

Net assets attributable to holders of redeemable units, Series A $ 44,457 $ 48,696 Number of redeemable units outstanding, Series A 1,908 2,237 Net assets attributable to holders of redeemable units per unit, Series A 23.31 21.77 Net assets attributable to holders of redeemable units per unit, Series A (USD) 18.30 16.77

Net assets attributable to holders of redeemable units, Series D $ 739 $ 849 Number of redeemable units outstanding, Series D 56 69 Net assets attributable to holders of redeemable units per unit, Series D 13.31 12.35

Net assets attributable to holders of redeemable units, Series F $ 34,066 $ 31,793 Number of redeemable units outstanding, Series F 1,300 1,306 Net assets attributable to holders of redeemable units per unit, Series F 26.20 24.34 Net assets attributable to holders of redeemable units per unit, Series F (USD) 20.57 18.75

Net assets attributable to holders of redeemable units, Series I $ 176,206 $ 154,020 Number of redeemable units outstanding, Series I 5,828 5,517 Net assets attributable to holders of redeemable units per unit, Series I 30.23 27.92

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

58 BRANDES GLOBAL SMALL CAP EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 5,580 $ 6,804 Interest for distribution purposes 583 24 Management Fee Rebates income 155 154 Net realized gain (loss) on sale of investments 5,056 (2,357) Net change in unrealized appreciation (depreciation) of investments 11,964 3,830 Net gain (loss) on investments 23,338 8,455

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 2 (64) Net change in unrealized appreciation (depreciation) of foreign exchange contracts (8) - Net gain (loss) on derivatives (6) (64)

Securities lending - 1 Other income - 3 Net realized gain (loss) on foreign currencies 197 (9) Net change in unrealized appreciation (depreciation) of foreign currencies 67 (373) Total net income (loss) 23,596 8,013

EXPENSES (note 6) Management fees 1,332 1,646 Legal - 2 Audit 9 10 Interest expense 1 - Independent review committee 4 4 Custody and fund accounting 39 47 Filing fees 7 8 Unitholder reporting 9 13 Administration and transfer agent fees 161 198 Foreign withholding taxes 437 620 Transaction costs (note 3) 436 196 2,435 2,744 Expenses absorbed (44) (55) Total expenses net of absorption 2,391 2,689

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 2,281 $ 342 Series D 44 (9) Series F 2,221 759 Series I 16,659 4,232 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 21,205 5,324

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 1.12 $ 0.15 Series D 0.70 (0.14) Series F 1.83 0.58 Series I 2.97 0.78

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

59 BRANDES GLOBAL SMALL CAP EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,281 342 44 (9) 2,221 759

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (54) (139) - (7) (268) (519) Distribution from net realized gains on portfolio investments ------Return of capital - (157) - (1) - - (54) (296) - (8) (268) (519)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 2,862 6,667 36 33 9,157 9,815 Reinvested distributions to holders of redeemable units 54 295 - 8 263 516 Net proceeds/(payments) from/for redeemable units transferred in/(out) (768) (886) - 557 768 329 Payments for redeemable units redeemed (8,614) (11,139) (190) (200) (9,868) (12,572) (6,466) (5,063) (154) 398 320 (1,912)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (4,239) (5,017) (110) 381 2,273 (1,672)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 44,457 $ 48,696 $ 739 $ 849 $ 34,066 $ 31,793

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 2,236,666 2,450,183 68,762 37,723 1,305,966 1,364,958 Redeemable units issued for cash 140,957 323,959 3,091 2,637 406,096 418,264 Redeemable units issued for reinvested distributions 2,738 14,640 3 704 10,820 22,867 Net redeemable units transferred in/(out) (37,220) (39,753) - 43,800 33,081 13,354 Redeemable units redeemed (435,625) (512,363) (16,302) (16,102) (455,902) (513,477) BALANCE, END OF YEAR 1,907,516 2,236,666 55,554 68,762 1,300,061 1,305,966

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 16,659 4,232 21,205 5,324

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (2,545) (3,794) (2,867) (4,459) Distribution from net realized gains on portfolio investments - - - - Return of capital - - - (158) (2,545) (3,794) (2,867) (4,617)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 13,100 5,332 25,155 21,847 Reinvested distributions to holders of redeemable units 2,545 3,794 2,862 4,613 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - - Payments for redeemable units redeemed (7,573) (8,799) (26,245) (32,710) 8,072 327 1,772 (6,250)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 22,186 765 20,110 (5,543)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 176,206 $ 154,020 $ 255,468 $ 235,358

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 5,517,400 5,477,962 Redeemable units issued for cash 543,277 199,719 Redeemable units issued for reinvested distributions 85,435 147,467 Net redeemable units transferred in/(out) - - Redeemable units redeemed (318,092) (307,748) BALANCE, END OF YEAR 5,828,020 5,517,400

The accompanying notes are an integral part of these ﬁnancial statements. 60 BRANDES GLOBAL SMALL CAP EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 21,205 $ 5,324

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (5,056) 2,357 Unrealized (appreciation) depreciation on foreign cash 3 54 Net change in unrealized (appreciation) depreciation of investments (11,964) (3,830) Net change in unrealized (appreciation) depreciation of foreign exchange contracts 8 - Purchase of investments (127,437) (59,964) Proceeds from sale of investments 111,294 65,214 (11,947) 9,155

CHANGE IN NON-CASH WORKING CAPITAL (67) 259

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 25,135 18,631 Distributions to holders of redeemable units (5) (4) Amounts paid on redemption of redeemable units (25,661) (32,653) (531) (14,026) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH (3) (54)

NET INCREASE (DECREASE) IN CASH (12,548) (4,666)

CASH—BEGINNING OF YEAR 16,838 21,504

CASH—END OF YEAR 4,290 16,838

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 5,076 6,443 Interest 583 24 Non-cash purchases arising from fund mergers - 3,597 SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO FINANCING ACTIVITIES Non-cash proceeds from issuance of redeemable units arising from fund mergers - 3,597

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

61 BRANDES GLOBAL SMALL CAP EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Food & Staples Retailing 3,385,300 Embraer SA $ 14,693 $ 7,336 2.9 1,974,973 J Sainsbury PLC $ 8,133 $ 7,727 3.0 8,569 Embraer SA ADR 196 75 - 92,600 Mitsubishi Shokuhin Co., Ltd. 3,168 3,268 1.3 40,687 Textron Inc. 1,462 2,504 1.0 2,553,453 WM Morrison Supermarkets PLC 8,806 7,865 3.1 16,351 9,915 3.9 20,107 18,860 7.4

Auto Components Food Products 100,100 Tachi-S Co., Ltd. 1,809 1,452 0.6 16,651 Binggrae Co., Ltd. 993 1,116 0.4 4,761 Namyang Dairy Products Co., Ltd. 2,617 1,591 0.6 Beverages 1,296,503 Premier Foods PLC 861 2,261 0.9 1,631,543 C&C Group PLC 5,771 6,466 2.5 27,283 Savencia SA 2,329 2,563 1.0 17,649 Lotte Chilsung Beverage Co., Ltd. 3,720 2,246 0.9 6,800 7,531 2.9 9,491 8,712 3.4 Gas Utilities Biotechnology 18,237 Samchully Co., Ltd. 2,146 1,743 0.7 1,171,858 PDL BioPharma Inc. 3,851 3,694 1.4 Health Care Equipment & Supplies Commercial Banks 22,547 Dragerwerk AG & Co. KGaA 1,888 2,129 0.8 98,944 Addiko Bank AG 2,051 1,346 0.5 16,340 Dragerwerk AG & Co. KGaA Preferred 1,404 1,610 0.6 2,204,095 AIB Group Public Limited Company 3,784 5,762 2.2 38,309 LENSAR, Inc. 161 353 0.2 197,625 Banco Latinoamericano de Comercio 3,453 4,092 1.6 Exterior SA Cl. E 3,486 3,984 1.6 1,026,491 Bankia, SA 1,525 2,326 0.9 Health Care Providers & Services 421,439 Bankinter SA 2,203 2,910 1.1 77,298 Triple-S Management Corporation Cl. B 1,762 2,102 0.8 571,600 Concordia Financial Group, Ltd. 2,601 2,567 1.0 287,912 Credito Emiliano SpA 1,721 1,978 0.8 Hotels, Restaurants & Leisure 239,900 Kyushu Financial Group, Inc. 1,509 1,255 0.5 342,908 Elior Group 2,510 2,943 1.1 286,806 Nova Ljubljanska banka d.d. GDR 4,199 4,014 1.6 2,124,100 Genting Berhad 2,442 3,005 1.2 902,200 The Hachijuni Bank, Ltd. 5,139 3,827 1.5 4,952 5,948 2.3 675,600 The Hyakugo Bank, Ltd. 3,205 2,488 1.0 31,423 32,457 12.7 Household Durables 14,340,487 Consorcio ARA, SAB de CV Series U 4,240 3,507 1.4 Commercial Services & Supplies 17,485,618 Desarrolladora Homex, SAB de CV 2,664 46 - 1,473,652 De La Rue PLC 7,067 4,305 1.7 201,391 Dorel Industries Inc. Cl. B Sub. Voting 5,526 3,007 1.2 574,896 G4S PLC 1,547 2,542 1.0 58,913 Taylor Morrison Home Corporation 972 1,924 0.7 7,791,704 Mitie Group PLC 8,100 5,561 2.2 235,247 Urbi, Desarrollos Urbanos, SAB de CV 2,790 150 0.1 16,714 12,408 4.9 16,192 8,634 3.4

Communications Equipment Insurance 107,686 NETGEAR, Inc. 4,088 5,572 2.2 32,869 American National Group, Inc. 3,332 4,024 1.6 276,866 Sierra Wireless Inc. 5,146 5,152 2.0 4,962 National Western Life Group, Inc. Cl. A 1,299 1,304 0.5 9,234 10,724 4.2 4,631 5,328 2.1

Construction & Engineering Machinery 673,047 Balfour Beatty PLC 2,746 3,171 1.2 127,578 China Yuchai International Limited 2,227 2,655 1.0 149,132 Danieli & C. Officine Meccaniche SPA Construction Materials Savings Shares 1,611 2,226 0.9 97,329 Buzzi Unicem SPA Savings Shares 1,415 1,992 0.8 578,600 Komori Corporation 7,626 5,168 2.0 252,747 Cemex SAB de CV ADR 1,054 1,664 0.6 11,464 10,049 3.9 47,478 Vicat SA 2,053 2,536 1.0 4,522 6,192 2.4 Media 842,467 Atresmedia Corporacion de Medios de Diversified Financial Services Comunicacion, SA 5,890 3,773 1.5 11,638,000 First Pacific Company Limited 5,696 4,765 1.9 231,100 Fuji Media Holdings, Inc. 3,899 3,141 1.2 543,147 Zee Entertainment Enterprises Limited 1,361 2,125 0.8 Diversified Telecommunications Services 11,150 9,039 3.5 2,536,700 Magyar Telekom Telecommunications PLC 5,013 4,134 1.6 Mortgage Real Estate Investment Trusts (REITs) 921,296 Macquarie Mexico Real Estate Electric Utilities Management SA de CV 1,217 1,657 0.7 714,750 First Philippine Holdings Corporation 1,176 1,459 0.6 Multiline Retail Electrical Equipment 1,249,739 Marks & Spencer Group PLC 3,221 2,951 1.2 70,400 Futaba Corp. 1,071 776 0.3 Oil, Gas & Consumable Fuels Electronic Equipment, Instruments & Components 211,701 Cameco Corporation 2,404 3,613 1.4 108,795 Park Aerospace Corp. 1,577 1,858 0.7 10,029 Chesapeake Energy Corporation 5.75% 4,831,800 PAX Global Technology Limited 2,838 5,476 2.2 Convertible Preferred 4,067 34 - 4,415 7,334 2.9 127,100 Japan Petroleum Exploration Co., Ltd. 2,848 2,945 1.2 9,319 6,592 2.6 Energy Equipment & Services 39,659 Dril-Quip, Inc. 1,289 1,496 0.6 Personal Products 101,550 Halliburton Company 949 2,444 1.0 136,944 Edgewell Personal Care Company 8,440 6,031 2.3 142,453 Helmerich & Payne, Inc. 2,888 4,202 1.6 118,916 Sarantis SA 477 1,729 0.7 5,126 8,142 3.2 51,866 Societe BIC SA 4,528 3,735 1.5 13,445 11,495 4.5 Equity Real Estate Investment Trusts (REITs) 5,309,633 Fibra Uno Administracion SA de CV 7,905 7,651 3.0 534,962 Lar Espana Real Estate SOCIMI, SA 4,230 3,885 1.5 12,135 11,536 4.5

62 BRANDES GLOBAL SMALL CAP EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS Pharmaceuticals 216,905 Avadel Pharmaceuticals PLC ADR $ 1,762 $ 1,845 0.7 65,804 Eagle Pharmaceuticals, Inc. 3,800 3,903 1.5 118,400 Kissei Pharmaceutical Company, Ltd. 3,619 3,273 1.3 28,958 Taro Pharmaceutical Industries, Ltd. 2,563 2,708 1.1 11,744 11,729 4.6

Real Estate Management & Development 319,721 Countrywide PLC 7,050 2,174 0.8 685,364 LSL Property Services PLC 2,683 3,471 1.4 9,733 5,645 2.2

Specialty Retail 1,078,500 Dickson Concepts (International) Limited 595 669 0.3 48,330,000 Emperor Watch & Jewellery Ltd 1,504 905 0.3 2,099 1,574 0.6

Technology Hardware, Storage & Peripherals 148,100 Funai Electric Co., Ltd. 1,137 748 0.3

Textiles, Apparel & Luxury Goods 1,054,017 Saﬁlo Group SpA 1,166 1,307 0.5 4,843,000 Weiqiao Textile Company, Ltd. Cl. H 2,757 1,360 0.5 3,923 2,667 1.0

Trading Companies & Distributors 283,081 Yellow Cake PLC 939 1,227 0.5

Wireless Telecommunications Services 2,371,000 APT Satellite Holdings Limited 1,498 678 0.3

Total Equities 271,705 247,160 96.8

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME Corporate USD 17,246,000 Chesapeake Energy Corporation 11.50% Jan 01/2025 5,034 3,877 1.5

Total Fixed Income 5,034 3,877 1.5

Total Investments 276,739 251,037 98.3 Foreign Exchange Contracts (a) (8) - Other Assets Less Liabilities 4,439 1.7 Net Assets Attributable to Holders of Redeemable Units 255,468 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 1,435 GBP 826 1.73695 to 1.73695 $ (3) Jan 4, 2021 EUR 225 CAD 352 0.63761 (3) Jan 4, 2021 HUF 61,046 CAD 263 232.34380 (1) Jan 5, 2021 JPY 21,310 CAD 263 80.89900 (1) $ (8) Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; Source—Standard & Poor's Credit Rating Agency

63 BRANDES GLOBAL SMALL CAP EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 143,222 75,035 - 218,257 Total Investments 143,222 75,035 - 218,257 Foreign Exchange Contracts, Net - - - -

During the year ended December 31, 2020, $39.8 million were transferred from Level 1 to Level 2, and $2.3 million were transferred from Level 2 to Level 1. During the year ended December 31, 2019, $2.5 million were transferred from Level 1 to Level 2, and $42.6 million were transferred from Level 2 to Level 1.

64 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES GLOBAL SMALL CAP EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

FINANCIAL INSTRUMENTS RISKS Credit Risk The investment objective of the Brandes Global Small Cap Equity Fund is to The substantial majority of the Fund’s ﬁnancial assets are equity shares which do achieve long-term capital appreciation by investing primarily in equity securities of not pay interest. As a result, exposure to credit risk is considered minimal at Canadian and non-Canadian issuers with small equity market capitalizations at December 31, 2020 and December 31, 2019. the time of purchase.

Market Price Risk SECURITIES LENDING The aggregate market value of all securities loaned by a fund cannot exceed 50% As at December 31, 2020, if the Fund’s benchmark (S&P Developed Small Cap of the net assets of the applicable Fund. The Funds receive collateral of at least Index) increased or decreased by 10%, with all other variables held constant, the 102% of the value of the securities on loan. Collateral may comprise of obligations net assets of the Fund would have increased or decreased, respectively, by of or guaranteed by the Government of Canada, or a province thereof, or by the approximately $20.6 million (December 31, 2019—$16.4 million), or 8.1% United States government or its agencies. (December 31, 2019—7.0%) of total net assets. This impact is estimated based on the historical correlation between the return of Series I units of the Fund as As at December 31, 2020 and 2019 the fair value of securities on loan and compared to the return of the Fund’s benchmark. In practice, the historical collateral received was $Nil. correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different. Reconciliation Between Gross and Net Income from Securities Lending

Foreign Currency Risk DECEMBER 31, 2019 The tables below indicate the currencies to which the Fund had signiﬁcant % OF GROSS exposure on its ﬁnancial instruments as at December 31, 2020 and December ($000) INCOME 31, 2019 in Canadian dollar terms, including the underlying principal of forward Gross Income from Securities Lending 2 100.0 exchange contracts, if any. Withholding Tax - - Fees Paid to Securities Lending Agent* 1 50.0 DECEMBER 31, 2020 Total Deductions 1 50.0 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Net Income from Securities Lending, net of withholding tax 1 50.0 Brazilian Real 7,336 - (1) 7,335 Euro 48,763 2 89 48,854 *All securities lending agent fees were paid to State Street Bank & Trust Company, Canada. Hong Kong Dollar 13,854 - 14 13,868 Hungarian Forint 4,134 - - 4,134 Indian Rupee 2,125 - - 2,125 Japanese Yen 30,908 - - 30,908 OFFSETTING OF FINANCIAL INSTRUMENTS Malaysian Ringgit 3,005 - - 3,005 The Fund does not enter into any enforceable master netting arrangement. Mexican Peso 13,011 - - 13,011 Philippine Peso 1,459 - - 1,459 Pound Sterling 49,720 - 166 49,886 South Korean Won 6,697 - - 6,697 U.S. Dollar 67,018 858 35 67,911 Total 248,030 860 303 249,193 % of Net Assets 97.1 0.3 0.1 97.5

DECEMBER 31, 2019 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Brazilian Real 10,878 - (1) 10,877 Euro 27,184 2 145 27,331 Hong Kong Dollar 10,437 - 14 10,451 Hungarian Forint 4,722 - - 4,722 Japanese Yen 35,450 - - 35,450 Mexican Peso 13,653 - - 13,653 Philippine Peso 1,263 - - 1,263 Pound Sterling 48,278 3 45 48,326 South Korean Won 7,653 - - 7,653 U.S. Dollar 52,602 3,552 143 56,297 Total 212,120 3,557 346 216,023 % of Net Assets 90.1 1.5 0.1 91.7

As at December 31, 2020, if the Canadian dollar had strengthened or weakened by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all other variables held constant, the Fund’s net assets would have decreased or increased, respectively, by approximately $5.0 million (December 31, 2019—$4.3 million), or 2.0% (December 31, 2019—1.8%) of total net assets. In practice, the actual results may differ from this sensitivity analysis and the difference could be material.

The notes at the back of this document are an integral part of these ﬁnancial statements. 65 BRANDES INTERNATIONAL EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 111,118 $ 132,717 Cash 9 6,921 Receivable for redeemable unit subscriptions 189 526 Receivable from securities sold 287 - Dividends and accrued interest receivable 342 388 111,945 140,552

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 140 390 Payable for open foreign currency spot or forward contracts 1 - 141 390

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 111,804 $ 140,162 Cost of investments 129,039 146,332

Net assets attributable to holders of redeemable units, Series A $ 36,323 $ 47,472 Number of redeemable units outstanding, Series A 2,745 3,389 Net assets attributable to holders of redeemable units per unit, Series A 13.23 14.01 Net assets attributable to holders of redeemable units per unit, Series A (USD) 10.39 10.79

Net assets attributable to holders of redeemable units, Series D $ 1,208 $ 1,431 Number of redeemable units outstanding, Series D 108 121 Net assets attributable to holders of redeemable units per unit, Series D 11.16 11.82

Net assets attributable to holders of redeemable units, Series F $ 57,453 $ 40,583 Number of redeemable units outstanding, Series F 4,151 2,782 Net assets attributable to holders of redeemable units per unit, Series F 13.84 14.59 Net assets attributable to holders of redeemable units per unit, Series F (USD) 10.87 11.23

Net assets attributable to holders of redeemable units, Series I $ 16,820 $ 50,676 Number of redeemable units outstanding, Series I 1,162 3,241 Net assets attributable to holders of redeemable units per unit, Series I 14.47 15.64

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

66 BRANDES INTERNATIONAL EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 3,769 $ 8,462 Interest for distribution purposes 7 11 Management Fee Rebates income 38 36 Net realized gain (loss) on sale of investments (7,665) (2,126) Net change in unrealized appreciation (depreciation) of investments (4,306) 10,406 Net gain (loss) on investments (8,157) 16,789

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 287 (107) Net change in unrealized appreciation (depreciation) of foreign exchange contracts (1) - Net gain (loss) on derivatives 286 (107)

Securities lending 10 71 Other income 266 1,216 Net realized gain (loss) on foreign currencies (152) 31 Net change in unrealized appreciation (depreciation) of foreign currencies 23 (117) Total net income (loss) (7,724) 17,883

EXPENSES (note 6) Management fees 1,220 1,472 Legal - 2 Audit 12 11 Interest expense 1 1 Independent review committee 5 4 Custody and fund accounting 58 47 Filing fees 17 15 Unitholder reporting 16 13 Other expenses - 1 Administration and transfer agent fees 243 219 Foreign withholding taxes 418 937 Transaction costs (note 3) 143 95 2,133 2,817 Expenses absorbed (111) (44) Total expenses net of absorption 2,022 2,773

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (3,102) $ 3,569 Series D (71) 81 Series F 1,275 3,386 Series I (7,848) 8,074 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (9,746) 15,110

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (1.02) $ 0.97 Series D (0.62) 0.56 Series F 0.33 1.13 Series I (4.08) 1.40

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

67 BRANDES INTERNATIONAL EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (3,102) 3,569 (71) 81 1,275 3,386

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (333) (1,213) (21) (52) (894) (1,506) (333) (1,213) (21) (52) (894) (1,506)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 1,165 982 55 1 25,100 7,120 Reinvested distributions to holders of redeemable units 332 1,209 21 52 870 1,420 Net proceeds/(payments) from/for redeemable units transferred in/(out) (218) (2,533) (47) 1,360 265 1,173 Payments for redeemable units redeemed (8,993) (10,551) (160) (637) (9,746) (20,544) (7,714) (10,893) (131) 776 16,489 (10,831)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (11,149) (8,537) (223) 805 16,870 (8,951)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 36,323 $ 47,472 $ 1,208 $ 1,431 $ 57,453 $ 40,583

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 3,388,541 4,182,438 121,088 55,456 2,781,994 3,547,875 Redeemable units issued for cash 93,387 70,859 5,814 41 2,095,406 487,921 Redeemable units issued for reinvested distributions 25,397 85,280 1,874 4,352 63,700 96,279 Net redeemable units transferred in/(out) (17,895) (181,974) (4,722) 115,815 20,869 80,566 Redeemable units redeemed (743,967) (768,062) (15,806) (54,576) (811,283) (1,430,647) BALANCE, END OF YEAR 2,745,463 3,388,541 108,248 121,088 4,150,686 2,781,994

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (7,848) 8,074 (9,746) 15,110

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (1,106) (4,363) (2,354) (7,134) (1,106) (4,363) (2,354) (7,134)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 2,940 22,130 29,260 30,233 Reinvested distributions to holders of redeemable units 1,047 3,387 2,270 6,068 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - - Payments for redeemable units redeemed (28,889) (64,225) (47,788) (95,957) (24,902) (38,708) (16,258) (59,656)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (33,856) (34,997) (28,358) (51,680)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 16,820 $ 50,676 $ 111,804 $ 140,162

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 3,241,141 5,727,381 Redeemable units issued for cash 226,641 1,410,713 Redeemable units issued for reinvested distributions 81,808 217,180 Net redeemable units transferred in/(out) - - Redeemable units redeemed (2,387,498) (4,114,133) BALANCE, END OF YEAR 1,162,092 3,241,141

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

68 BRANDES INTERNATIONAL EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (9,746) $ 15,110

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 7,665 2,126 Unrealized (appreciation) depreciation on foreign cash - 10 Net change in unrealized (appreciation) depreciation of investments 4,306 (10,406) Net change in unrealized (appreciation) depreciation of foreign exchange contracts 1 - Purchase of investments (40,770) (15,872) Proceeds from sale of investments 50,111 74,893 11,567 65,861

CHANGE IN NON-CASH WORKING CAPITAL 46 154

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 29,597 29,770 Distributions to holders of redeemable units (84) (1,066) Amounts paid on redemption of redeemable units (48,038) (97,270) (18,525) (68,566) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH - (10)

NET INCREASE (DECREASE) IN CASH (6,912) (2,561)

CASH—BEGINNING OF YEAR 6,921 9,482

CASH—END OF YEAR 9 6,921

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 3,397 7,679 Interest 7 11

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

69 BRANDES INTERNATIONAL EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Insurance 173,726 Embraer SA ADR $ 4,235 $ 1,507 1.3 221,090 Aegon NV $ 1,497 $ 1,122 1.0 49,731 MS&AD Insurance Group Holdings, Inc. 1,759 1,927 1.7 Auto Components 15,391 Swiss Re AG 1,292 1,846 1.7 6,527 Hyundai Mobis Co., Ltd. 1,580 1,956 1.7 4,548 4,895 4.4

Automobiles Media 45,200 Honda Motor Co., Ltd. 1,726 1,624 1.5 47,261 Publicis Groupe SA 2,952 2,990 2.7 134,700 Nissan Motor Co., Ltd. 1,341 930 0.8 203,735 WPP PLC 3,764 2,810 2.5 20,411 Renault SA 1,255 1,137 1.0 6,716 5,800 5.2 4,322 3,691 3.3 Metals & Mining Beverages 3,751 POSCO 1,049 1,194 1.1 469,500 Ambev SA 1,372 1,808 1.6 15,064 Anheuser-Busch InBev SA/NV 980 1,338 1.2 Multiline Retail 18,038 Fomento Economico Mexicano, SAB de 654,605 Marks & Spencer Group PLC 3,299 1,546 1.4 CV (FEMSA) ADR 1,377 1,740 1.6 3,729 4,886 4.4 Multi-Utilities 115,183 Engie SA 2,633 2,248 2.0 Biotechnology 58,946 Grifols, SA Cl. B Preferred 1,444 1,406 1.3 Oil, Gas & Consumable Fuels 573,868 BP PLC 3,190 2,521 2.3 Building Products 202,415 Eni SPA 3,855 2,690 2.4 29,909 Compagnie de Saint-Gobain 1,299 1,751 1.6 292,900 Petroleo Brasileiro SA - Petrobras Preferred 1,086 2,025 1.8 Capital Markets 149,562 Repsol, SA 2,707 1,918 1.7 146,341 UBS Group AG 2,732 2,623 2.3 149,562 Repsol, SA, Rights 67 65 0.1 2,360,577 Surgutneftegas PJSC Preferred 1,486 1,696 1.5 Chemicals 35,320 Total SE 2,064 1,941 1.7 20,526 BASF SE 1,879 2,065 1.8 14,455 12,856 11.5

Commercial Banks Personal Products 787,600 Barclays PLC 3,236 2,011 1.8 13,567 Societe BIC SA 1,376 977 0.9 28,530 BNP Paribas SA 1,407 1,917 1.7 160,598 Credit Suisse Group AG 3,561 2,639 2.4 Pharmaceuticals 25,634 Hana Financial Group Inc. 768 1,040 0.9 123,493 GlaxoSmithKline PLC 3,277 2,876 2.6 681,948 Intesa Sanpaolo SPA 2,243 2,052 1.8 9,048 Novartis AG 1,051 1,084 1.0 324,700 Mitsubishi UFJ Financial Group, Inc. 3,197 1,831 1.7 18,217 Sanoﬁ 1,923 2,248 2.0 40,098 Sumitomo Mitsui Trust Holdings, Inc. 2,637 1,575 1.4 15,150 Taisho Pharmaceutical Holdings Co., 17,049 13,065 11.7 Ltd. 1,441 1,301 1.2 90,637 Takeda Pharmaceutical Company Commercial Services & Supplies Limited 4,291 4,177 3.7 34,009 Dai Nippon Printing Co., Ltd. 1,137 779 0.7 11,983 11,686 10.5 253,917 G4S PLC 921 1,123 1.0 2,058 1,902 1.7 Specialty Retail 274,600 Kingﬁsher PLC 1,245 1,292 1.2 Communications Equipment 113,765 Nokia OYJ 736 559 0.5 Technology Hardware, Storage & Peripherals 121,000 ASUSTeK Computer Inc. 1,392 1,376 1.2 Construction Materials 358,407 Cemex SAB de CV ADR 2,423 2,360 2.1 Textiles, Apparel & Luxury Goods 25,786 CRH PLC 883 1,387 1.2 902 The Swatch Group AG Bearer Shares 380 312 0.3 26,666 HeidelbergCement AG 2,131 2,527 2.3 25,823 The Swatch Group AG Registered 1,867 1,735 1.5 5,437 6,274 5.6 2,247 2,047 1.8

Diversified Financial Services Tobacco 1,844,000 First Pacific Company Limited 2,062 755 0.7 55,105 Imperial Brands PLC 2,304 1,471 1.3 13,746 KT&G Corporation 1,584 1,341 1.2 Diversified Telecommunications Services 3,888 2,812 2.5 118,067 Orange SA 2,391 1,789 1.6 180,821 Telecom Italia SPA 102 107 0.1 Wireless Telecommunications Services 3,271,887 Telecom Italia SPA Savings Shares 4,835 2,170 1.9 199,000 China Mobile Limited 2,334 1,444 1.3 7,328 4,066 3.6

Equity Real Estate Investment Trusts (REITs) Total Investments 129,039 111,118 99.4 2,185,486 Fibra Uno Administracion SA de CV 3,586 3,149 2.8 Foreign Exchange Contracts (a) (1) - Food & Staples Retailing Other Assets Less Liabilities 687 0.6 117,015 Carrefour SA 2,914 2,551 2.3 Net Assets Attributable to Holders of 516,450 J Sainsbury PLC 2,399 2,021 1.8 Redeemable Units 111,804 100.0 459,619 Tesco PLC 2,029 1,846 1.7 429,716 WM Morrison Supermarkets PLC 1,775 1,323 1.2 9,117 7,741 7.0

Food Products 24,500 DANONE SA 2,045 2,052 1.8

Household Products 12,208 Henkel AG & Co. KGaA 1,236 1,497 1.3

70 BRANDES INTERNATIONAL EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 333 GBP 192 1.73695 to 1.73743 $ (1) $ (1) Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; —State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

71 BRANDES INTERNATIONAL EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Portfolio by Industry Exposure DECEMBER 31, 2020 DEC. 31 DEC. 31 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT 2020 (%) 2019 (%) MARKETS FOR OBSERVABLE UNOBSERVABLE Equities IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Aerospace & Defense 1.3 1.9 ($000) ($000) ($000) ($000) Auto Components 1.7 2.1 Automobiles 3.3 3.8 Equities 8,821 102,297 - 111,118 Beverages 4.4 - Total Investments 8,821 102,297 - 111,118 Biotechnology 1.3 - Building Products 1.6 2.1 Foreign Exchange Capital Markets 2.3 2.1 Contracts, Net - (1) - (1) Chemicals 1.8 1.4 Commercial Banks 11.7 11.4 Commercial Services & Supplies 1.7 2.6 DECEMBER 31, 2019 Communications Equipment 0.5 1.1 QUOTED PRICES SIGNIFICANT Construction Materials 5.6 3.0 IN ACTIVE OTHER SIGNIFICANT Diversified Financial Services 0.7 0.8 MARKETS FOR OBSERVABLE UNOBSERVABLE Diversified Telecommunications Services 3.6 4.7 IDENTICAL INPUTS INPUTS Equity Real Estate Investment Trusts (REITs) 2.8 2.7 ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Electrical Equipment - 1.0 ($000) ($000) ($000) ($000) Food & Staples Retailing 7.0 7.2 Equities 16,815 115,902 - 132,717 Food Products 1.8 - Total Investments 16,815 115,902 - 132,717 Household Products 1.3 - Insurance 4.4 4.4 Foreign Exchange Media 5.2 4.3 Contracts, Net - - - - Metals & Mining 1.1 0.7 Multiline Retail 1.4 1.7 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Multi-Utilities 2.0 2.3 service provider to provide fair value adjustments, where applicable, to the prices Oil, Gas & Consumable Fuels 11.5 9.4 Personal Products 0.9 0.8 of foreign securities due to changes in the value of securities in North American Pharmaceuticals 10.5 12.3 markets following the closure of the foreign markets. The parameters used to Semiconductors & Semiconductor Equipment - 1.0 apply the fair value adjustments are based on observable market data, and as Specialty Retail 1.2 1.8 such, the foreign securities are considered Level 2 priced securities. Technology Hardware, Storage & Peripherals 1.2 1.4 Textiles, Apparel & Luxury Goods 1.8 1.3 During the year ended December 31, 2020, $4.3 million were transferred from Tobacco 2.5 1.9 Level 1 to Level 2. During the year ended December 31, 2019, $5.7 million were Wireless Telecommunications Services 1.3 3.5 transferred from Level 2 to Level 1. Total investments 99.4 94.7 Foreign exchange contracts, net - - Total financial instruments at fair value 99.4 94.7 FINANCIAL INSTRUMENTS RISKS Total other assets less liabilities at cost or amortized cost 0.6 5.3 The investment objective of the Brandes International Equity Fund is to achieve Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 long-term capital appreciation by investing primarily in the equity securities of non-Canadian issuers and non-U.S. issuers whose equity market capitalizations exceed $1 billion at the time of purchase. Portfolio by Country Exposure DEC. 31 DEC. 31 Market Price Risk 2020 (%) 2019 (%) As at December 31, 2020, if the Fund’s benchmark (MSCI EAFE Index) increased Equities or decreased by 10%, with all other variables held constant, the net assets of the Belgium 1.2 - Fund would have increased or decreased, respectively, by approximately $12.3 Brazil 4.7 3.5 million (December 31, 2019—$12.1 million), or 11.0% (December 31, China 1.3 1.6 Denmark 2.3 - 2019—8.6%) of total net assets attributable to holders of redeemable units. This Finland 0.5 1.1 impact is estimated based on the historical correlation between the return of France 19.3 17.4 Series I units of the Fund as compared to the return of the Fund’s benchmark. In Germany 3.1 1.4 practice, the historical correlation may not be representative of the future Hong Kong 0.7 0.8 correlation and, accordingly, the impact on net assets could be Ireland 1.2 1.6 materially different. Italy 6.2 6.5 Japan 12.7 14.2 Mexico 6.5 5.0 Netherlands 1.0 2.2 Russia 1.5 3.1 South Korea 4.9 5.2 Spain 3.1 1.7 Switzerland 9.2 6.9 Taiwan 1.2 1.4 United Kingdom 18.8 21.1 Total investments 99.4 94.7 Foreign exchange contracts, net - - Total financial instruments at fair value 99.4 94.7 Total other assets less liabilities at cost or amortized cost 0.6 5.3 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0

72 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES INTERNATIONAL EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Foreign Currency Risk Reconciliation Between Gross and Net Income from Securities Lending The tables below indicate the currencies to which the Fund had signiﬁcant exposure on its ﬁnancial instruments as at December 31, 2020 and December DECEMBER 31, 2020 31, 2019 in Canadian dollar terms, including the underlying principal of forward % OF GROSS exchange contracts, if any. ($000) INCOME Gross Income from Securities Lending 14 100.0 DECEMBER 31, 2020 Withholding Tax - - INVESTMENTS CASH OTHER NET TOTAL Fees Paid to Securities Lending Agent* 4 28.6 CURRENCY ($000) ($000) ASSETS ($000) ($000) Total Deductions 4 28.6 Brazilian Real 3,833 41 1 3,875 Net Income from Securities Lending, net Euro 41,118 - 143 41,261 of withholding tax 10 71.4 Hong Kong Dollar 2,200 - - 2,200 Japanese Yen 14,142 - 9 14,151 Mexican Peso 3,149 - - 3,149 New Taiwan Dollar 1,376 - - 1,376 DECEMBER 31, 2019 Pound Sterling 22,227 46 25 22,298 % OF GROSS South Korean Won 5,530 - - 5,530 ($000) INCOME Swiss Franc 10,240 - 118 10,358 Gross Income from Securities Lending 101 100.0 U.S. Dollar 7,303 - - 7,303 Withholding Tax - - Total 111,118 87 296 111,501 Fees Paid to Securities Lending Agent* 30 29.7 Total Deductions 30 29.7 % of Net Assets 99.4 0.1 0.3 99.8 Net Income from Securities Lending, net of withholding tax 71 70.3 DECEMBER 31, 2019 *All securities lending agent fees were paid to State Street Bank & Trust Company, Canada. INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Brazilian Real 2,180 - 79 2,259 OFFSETTING OF FINANCIAL INSTRUMENTS Euro 41,063 - 71 41,134 The Fund does not enter into any enforceable master netting arrangement. Hong Kong Dollar 3,244 - - 3,244 Japanese Yen 19,972 - 17 19,989 Mexican Peso 5,036 - - 5,036 New Taiwan Dollar 1,944 - - 1,944 Pound Sterling 31,832 68 67 31,967 South Korean Won 7,273 - - 7,273 Swiss Franc 9,601 - 76 9,677 U.S. Dollar 10,572 636 78 11,286 Total 132,717 704 388 133,809 % of Net Assets 94.7 0.5 0.3 95.5

As at December 31, 2020, if the Canadian dollar had strengthened or weakened by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all other variables held constant, the Fund’s net assets would have decreased or increased, respectively, by approximately $2.2 million (December 31, 2019—$2.7 million), or 2.0% (December 31, 2019—1.9%) of total net assets. In practice, the actual results may differ from this sensitivity analysis and the difference could be material.

Credit Risk The Fund enters into foreign exchange contracts to buy and sell currencies for the purpose of settling foreign securities transactions. These are short term spot settlements carried out with approved counterparties. The exposure to credit risk on these contracts is considered minimal as the transactions are settled and paid for upon delivery.

SECURITIES LENDING The aggregate market value of all securities loaned by a fund cannot exceed 50% of the net assets of the applicable Fund. The Funds receive collateral of at least 102% of the value of the securities on loan. Collateral may comprise of obligations of or guaranteed by the Government of Canada, or a province thereof, or by the United States government or its agencies.

As at December 31, 2020 and 2019, the fair value of securities on loan and collateral received was $Nil.

The notes at the back of this document are an integral part of these ﬁnancial statements. 73 BRANDES U.S. EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 71,446 $ 81,222 Cash 677 2,206 Receivable for redeemable unit subscriptions 93 39 Dividends and accrued interest receivable 100 119 Receivable for open foreign currency spot or forward contracts 296 227 72,612 83,813

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 82 54 Payable for open foreign currency spot or forward contracts 20 14 102 68

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 72,510 $ 83,745 Cost of investments 54,946 61,056

Net assets attributable to holders of redeemable units, Series A $ 43,124 $ 50,037 Number of redeemable units outstanding, Series A 2,472 2,956 Net assets attributable to holders of redeemable units per unit, Series A 17.44 16.93 Net assets attributable to holders of redeemable units per unit, Series A (USD) 13.70 13.04

Net assets attributable to holders of redeemable units, Series F $ 20,938 $ 24,596 Number of redeemable units outstanding, Series F 1,043 1,270 Net assets attributable to holders of redeemable units per unit, Series F 20.07 19.36 Net assets attributable to holders of redeemable units per unit, Series F (USD) 15.76 14.91

Net assets attributable to holders of redeemable units, Series I $ 497 $ 472 Number of redeemable units outstanding, Series I 22 22 Net assets attributable to holders of redeemable units per unit, Series I 22.12 21.29

Net assets attributable to holders of redeemable units, Series AH $ 485 $ 449 Number of redeemable units outstanding, Series AH 35 34 Net assets attributable to holders of redeemable units per unit, Series AH 13.67 13.37

Net assets attributable to holders of redeemable units, Series FH $ 7,466 $ 8,191 Number of redeemable units outstanding, Series FH 515 580 Net assets attributable to holders of redeemable units per unit, Series FH 14.49 14.11

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

74 BRANDES U.S. EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 1,690 $ 2,035 Interest for distribution purposes 4 14 Management Fee Rebates income 80 122 Net realized gain (loss) on sale of investments 4,776 7,161 Net change in unrealized appreciation (depreciation) of investments (3,666) 5,832 Net gain (loss) on investments 2,884 15,164

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (70) (419) Net change in unrealized appreciation (depreciation) of foreign exchange contracts 63 753 Net gain (loss) on derivatives (7) 334

Other income 13 23 Net realized gain (loss) on foreign currencies (11) (45) Net change in unrealized appreciation (depreciation) of foreign currencies 8 (54) Total net income (loss) 2,887 15,422

EXPENSES (note 6) Management fees 1,141 1,499 Legal - 2 Audit 10 10 Independent review committee 4 4 Custody and fund accounting 35 33 Filing fees 24 25 Unitholder reporting 6 7 Administration and transfer agent fees 130 150 Foreign withholding taxes 235 296 Transaction costs (note 3) 15 10 1,600 2,036 Expenses absorbed (22) (6) Total expenses net of absorption 1,578 2,030

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 689 $ 7,696 Series F 437 3,819 Series I 25 76 Series AH 39 87 Series FH 119 1,714 Series IH - - TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,309 13,392

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.25 $ 2.39 Series F 0.39 2.87 Series I 1.17 3.40 Series AH 1.19 2.51 Series FH 0.22 2.59 Series IH 0.72 2.95

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

75 BRANDES U.S. EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 689 7,696 437 3,819 25 76

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (68) (19) (123) - (7) - Return of capital - (59) - (28) - - (68) (78) (123) (28) (7) -

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 1,540 1,730 1,024 2,779 - - Reinvested distributions to holders of redeemable units 69 78 117 28 7 - Net proceeds/(payments) from/for redeemable units transferred in/(out) (752) (704) 690 704 - - Payments for redeemable units redeemed (8,391) (10,250) (5,803) (4,530) - - (7,534) (9,146) (3,972) (1,019) 7 -

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (6,913) (1,528) (3,658) 2,772 25 76

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 43,124 $ 50,037 $ 20,938 $ 24,596 $ 497 $ 472

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 2,955,551 3,536,512 1,270,331 1,323,529 22,164 22,164 Redeemable units issued for cash 99,727 108,590 63,173 156,347 - - Redeemable units issued for reinvested distributions 4,395 4,948 5,921 1,560 318 - Net redeemable units transferred in/(out) (46,746) (44,765) 36,829 39,401 - - Redeemable units redeemed (540,693) (649,734) (332,948) (250,506) - - BALANCE, END OF YEAR 2,472,234 2,955,551 1,043,306 1,270,331 22,482 22,164

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 39 87 119 1,714 - -

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (1) (59) (6) - - Return of capital - - - (10) - - - (1) (59) (16) - -

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 62 - 73 147 - - Reinvested distributions to holders of redeemable units - 1 58 16 - - Net proceeds/(payments) from/for redeemable units transferred in/(out) 51 - 11 - - - Payments for redeemable units redeemed (116) (93) (927) (2,114) - - (3) (92) (785) (1,951) - -

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 36 (6) (725) (253) - -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 485 $ 449 $ 7,466 $ 8,191 $ $- -

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 33,557 41,144 580,367 732,518 30 30 Redeemable units issued for cash 5,541 - 5,172 11,743 - - Redeemable units issued for reinvested distributions 37 95 4,104 1,258 - - Net redeemable units transferred in/(out) 5,144 - 770 - - - Redeemable units redeemed (8,823) (7,682) (75,128) (165,152) - - BALANCE, END OF YEAR 35,456 33,557 515,285 580,367 30 30

76 BRANDES U.S. EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (CONTINUED)

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 83,745 $ 82,684

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,309 13,392

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (257) (26) Return of capital - (97) (257) (123)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 2,699 4,656 Reinvested distributions to holders of redeemable units 251 123 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (15,237) (16,987) (12,287) (12,208)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (11,235) 1,061

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 72,510 $ 83,745

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

77 BRANDES U.S. EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 1,309 $ 13,392

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (4,776) (7,161) Unrealized (appreciation) depreciation on foreign cash 3 10 Net change in unrealized (appreciation) depreciation of investments 3,666 (5,832) Net change in unrealized (appreciation) depreciation of foreign exchange contracts (63) (753) Purchase of investments (12,957) (7,925) Proceeds from sale of investments 23,843 21,527 11,025 13,258

CHANGE IN NON-CASH WORKING CAPITAL 19 28

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 2,645 4,670 Distributions to holders of redeemable units (6) - Amounts paid on redemption of redeemable units (15,209) (17,024) (12,570) (12,354) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH (3) (10)

NET INCREASE (DECREASE) IN CASH (1,529) 922

CASH—BEGINNING OF YEAR 2,206 1,284

CASH—END OF YEAR 677 2,206

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 1,474 1,767 Interest 4 14

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

78 BRANDES U.S. EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Household Durables 7,341 General Dynamics Corporation $ 1,370 $ 1,391 1.9 8,664 Mohawk Industries, Inc. $ 886 $ 1,555 2.1 21,793 Textron Inc. 959 1,342 1.9 51,668 Taylor Morrison Home Corporation 1,412 1,688 2.3 2,329 2,733 3.8 2,298 3,243 4.4

Air Freight & Logistics Insurance 4,646 FedEx Corporation 1,035 1,536 2.1 23,869 American International Group, Inc. 1,479 1,151 1.6 13,756 Loews Corporation 681 789 1.1 Beverages 65,541 Old Republic International Corporation 1,298 1,645 2.3 3,259 PepsiCo, Inc. 246 615 0.8 3,458 3,585 5.0

Biotechnology Interactive Media & Services 4,490 Gilead Sciences, Inc. 400 333 0.5 451 Alphabet Inc. Cl. C 481 1,006 1.4

Capital Markets IT Services 22,936 Morgan Stanley Series A 20,889 Amdocs Limited 1,197 1,887 2.6 4.00% Preferred 707 729 1.0 10,665 Cognizant Technology Solutions 14,840 State Street Corporation 1,026 1,376 1.9 Corp. Cl. A 783 1,113 1.5 27,849 The Bank of New York 1,980 3,000 4.1 Mellon Corporation 865 1,505 2.1 24,457 The Goldman Sachs Group, Inc. Series Media D 4.00% Preferred 663 786 1.1 37,332 Comcast Corporation Cl. A 1,771 2,491 3.4 3,261 4,396 6.1 20,185 Fox Corporation Cl. B 941 743 1.0 20,637 Omnicom Group Inc. 1,857 1,639 2.2 Chemicals 4,569 4,873 6.6 35,001 Corteva, Inc. 1,174 1,726 2.4 9,659 Westlake Chemical Corporation 760 1,004 1.4 Oil, Gas & Consumable Fuels 1,934 2,730 3.8 12,859 Chevron Corporation 1,447 1,383 1.9 38,137 World Fuel Services Corporation 1,458 1,513 2.1 Commercial Banks 2,905 2,896 4.0 3,998 The PNC Financial Services Group, Inc. 329 758 1.0 27,010 Truist Financial Corporation 978 1,649 2.3 Pharmaceuticals 36,995 U.S. Bancorp Series B 3.50% Preferred 1,112 1,167 1.6 7,829 Johnson & Johnson 1,088 1,569 2.2 34,570 Wells Fargo & Company 2,067 1,329 1.8 15,842 Merck & Co., Inc. 825 1,650 2.3 4,486 4,903 6.7 30,216 Pﬁzer Inc. 1,013 1,417 1.9 2,926 4,636 6.4 Communications Equipment 16,305 Cisco Systems, Inc. 647 929 1.3 Road & Rail 1,850 AMERCO 921 1,070 1.5 Diversiﬁed Financial Services 54,729 Bank of America Corporation 1,001 2,113 2.9 Semiconductors & Semiconductor Equipment 29,317 Citigroup Inc. 1,137 2,302 3.2 8,135 Applied Materials, Inc. 430 894 1.2 8,454 JPMorgan Chase & Co. 382 1,368 1.9 10,314 Micron Technology, Inc. 647 988 1.4 2,520 5,783 8.0 1,077 1,882 2.6

Electric Utilities Software 9,544 ALLETE, Inc. 676 753 1.0 2,354 Microsoft Corporation 68 667 0.9 15,818 Oracle Corporation 546 1,303 1.8 Electrical Equipment 614 1,970 2.7 13,890 Emerson Electric Co. 929 1,422 2.0 14,555 Johnson Controls International PLC 667 863 1.2 1,596 2,285 3.2 Total Investments 54,946 71,446 98.5 Electronic Equipment, Instruments & Components Foreign Exchange Contracts (a) 276 0.4 23,310 Avnet, Inc. 1,141 1,042 1.4 Other Assets Less Liabilities 788 1.1 33,594 Flex Ltd. 341 769 1.1 Net Assets Attributable to Holders of 1,482 1,811 2.5 Redeemable Units 72,510 100.0

Energy Equipment & Services 40,040 Halliburton Company 1,311 964 1.3 (a) Foreign Exchange Contracts Equity Real Estate Investment Trusts (REITs) SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED 4,710 Mid-America Apartment Communities, DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Inc. 736 760 1.0 Jan 4, 2021 CAD 7 USD 6 1.27150 $ - 1.30070 to Food Products Jan 15, 2021 CAD 8,099 USD 6,127 1.32591 296 14,229 Ingredion Incorporated 1,473 1,426 2.0 0.74855 to Jan 15, 2021 USD 337 CAD 450 0.75060 (20) Health Care Providers & Services $ 276 23,337 Cardinal Health, Inc. 1,925 1,592 2.2 5,551 Cigna Corporation 1,420 1,472 2.0 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; 18,414 CVS Health Corporation 1,727 1,601 2.2 —State Street Trust Company Canada; Rating AA-; 8,231 HCA Healthcare, Inc. 928 1,724 2.4 Source—Standard & Poor's Credit Rating Agency 6,060 Laboratory Corporation of America Holdings 1,067 1,571 2.2 9,783 McKesson Corporation 1,835 2,167 3.0 8,902 10,127 14.0

Health Care Technology 50,566 Change Healthcare, Inc. 683 1,201 1.7

79 BRANDES U.S. EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

FAIR VALUE MEASUREMENTS The following tables summarize the foreign currency risk associated with the Below is a summary of the inputs used as at December 31, 2020 and December hedged series which is offset by Forward Foreign Currency Contracts. 31, 2019 in valuing the Fund’s investments carried at fair values. DECEMBER 31, 2020 DECEMBER 31, 2020 Forward QUOTED PRICES SIGNIFICANT Foreign IN ACTIVE OTHER SIGNIFICANT Currency MARKETS FOR OBSERVABLE UNOBSERVABLE Contracts IDENTICAL INPUTS INPUTS outstanding ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL OTHER NET in Hedged ($000) ($000) ($000) ($000) INVESTMENTS CASH ASSETS Series TOTAL CURRENCY ($000) ($000) ($000) ($000) ($000) Equities 71,446 - - 71,446 U.S. Dollar 7,834 27 10 (7,373) 498 Total Investments 71,446 - - 71,446 Total 7,834 27 10 (7,373) 498 Foreign Exchange Contracts, Net - 276 - 276 % of Net Assets 10.8 - - (10.2) 0.6

DECEMBER 31, 2019 DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT Forward IN ACTIVE OTHER SIGNIFICANT Foreign MARKETS FOR OBSERVABLE UNOBSERVABLE Currency IDENTICAL INPUTS INPUTS Contracts ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL outstanding ($000) ($000) ($000) ($000) OTHER NET in Hedged INVESTMENTS CASH ASSETS Series TOTAL Equities 81,222 - - 81,222 CURRENCY ($000) ($000) ($000) ($000) ($000) Total Investments 81,222 - - 81,222 U.S. Dollar 8,380 69 12 (8,207) 254 Foreign Exchange Total 8,380 69 12 (8,207) 254 Contracts, Net - 213 - 213 % of Net Assets 10.0 0.1 - (9.8) 0.3 During the years ended December 31, 2020 and December 31, 2019, there were no signiﬁcant transfers bewteen Level 1 and 2 priced securities.

80 The notes at the back of this document are an integral part of these ﬁnancial statements. BRANDES U.S. EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

As at December 31, 2020, if the Canadian dollar had strengthened or weakened DECEMBER 31, 2019 by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all AMOUNTS other variables held constant, the Fund’s net assets would have decreased or PRESENTED IN increased, respectively, by approximately $1.3 million (December 31, THE STATEMENT 2019—$1.5 million), or 1.8% (December 31, 2019—1.8%) of total net assets. OF FINANCIAL The Fund consists of both Unhedged and Hedged Series. Exposure to currency POSITION AMOUNTS ELIGIBLE FOR OFFSET NET impact would only affect the Unhedged Series. Approximately 89.0% (December FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH 31, 2019—89.7%) of the Fund is invested in the Unhedged Series of units which AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL has not been hedged with forward exchange contracts. The remaining 11.0% Receivable for open foreign currency (December 31, 2019—10.3%) of the Fund is invested in the Hedged Series of spot or exchange units which has been hedged with forward exchange contracts and therefore is contracts 227 (14) - 213 not subject to significant currency risk. In practice, the actual results may differ Payable for open from this sensitivity analysis and the difference could be material. foreign currency spot or exchange contracts (14) 14 - - Interest Rate Risk The substantial majority of the Fund’s financial assets are equity shares which do not pay interest. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates.

For the hedged series the Fund uses forward contracts to hedge the foreign currency exposure on that portion of the Fund associated with the Hedged Series of units. All of these contracts are with an approved counterparty.

As at December 31, 2020 and 2019 the fair value of securities on loan and collateral received was $Nil.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 296 (20) - 276 Payable for open foreign currency spot or exchange contracts (20) 20 - -

The notes at the back of this document are an integral part of these ﬁnancial statements. 81 BRIDGEHOUSE CANADIAN BOND FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 31,578 $ 36,605 Cash 614 8 Receivable for redeemable unit subscriptions - 8 Dividends and accrued interest receivable 130 154 32,322 36,775

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 600 - 600 -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 31,722 $ 36,775 Cost of investments 30,023 35,824

Net assets attributable to holders of redeemable units, Series A $ 5,760 $ 4,432 Number of redeemable units outstanding, Series A 522 430 Net assets attributable to holders of redeemable units per unit, Series A 11.03 10.31

Net assets attributable to holders of redeemable units, Series F $ 4,263 $ 5,564 Number of redeemable units outstanding, Series F 384 536 Net assets attributable to holders of redeemable units per unit, Series F 11.09 10.38

Net assets attributable to holders of redeemable units, Series I $ 21,699 $ 26,779 Number of redeemable units outstanding, Series I 1,970 2,599 Net assets attributable to holders of redeemable units per unit, Series I 11.01 10.30

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

82 BRIDGEHOUSE CANADIAN BOND FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ 853 $ 1,103 Management Fee Rebates income 1 - Net realized gain (loss) on sale of investments 1,363 988 Net change in unrealized appreciation (depreciation) of investments 774 930 Total net income (loss) 2,991 3,021

EXPENSES (note 6) Management fees 60 60 Audit 1 1 Independent review committee 1 - Custody and fund accounting 5 4 Filing fees 6 5 Unitholder reporting 1 1 Administration and transfer agent fees 19 20 93 91 Expenses absorbed (12) (7) Total expenses net of absorption 81 84

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 393 $ 261 Series F 401 402 Series I 2,116 2,274 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,910 2,937

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.85 $ 0.61 Series F 0.95 0.68 Series I 0.99 0.77

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

83 BRIDGEHOUSE CANADIAN BOND FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 393 261 401 402 2,116 2,274

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (76) (72) (96) (130) (608) (831) (76) (72) (96) (130) (608) (831)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 2,018 974 553 775 2,950 - Reinvested distributions to holders of redeemable units 55 44 31 28 607 831 Net proceeds/(payments) from/for redeemable units transferred in/(out) (10) (108) 10 108 - - Payments for redeemable units redeemed (1,052) (1,700) (2,200) (1,980) (10,145) (11,250) 1,011 (790) (1,606) (1,069) (6,588) (10,419)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 1,328 (601) (1,301) (797) (5,080) (8,976)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 5,760 $ 4,432 $ 4,263 $ 5,564 $ 21,699 $ 26,779

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 429,771 508,805 536,115 639,228 2,599,187 3,617,898 Redeemable units issued for cash 185,533 94,246 50,259 74,585 272,761 - Redeemable units issued for reinvested distributions 5,108 4,363 2,899 2,661 56,454 81,351 Net redeemable units transferred in/(out) (895) (10,432) 890 10,369 - - Redeemable units redeemed (97,204) (167,211) (205,776) (190,728) (958,043) (1,100,062) BALANCE, END OF YEAR 522,313 429,771 384,387 536,115 1,970,359 2,599,187

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 36,775 $ 47,149

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,910 2,937

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (780) (1,033) (780) (1,033)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 5,521 1,749 Reinvested distributions to holders of redeemable units 693 903 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (13,397) (14,930) (7,183) (12,278)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (5,053) (10,374)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 31,722 $ 36,775

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

84 BRIDGEHOUSE CANADIAN BOND FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 2,910 $ 2,937

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (1,363) (988) Net change in unrealized (appreciation) depreciation of investments (774) (930) Purchase of investments (38,098) (39,609) Proceeds from sale of investments 45,262 51,844 Amortization income - (1) 7,937 13,253

CHANGE IN NON-CASH WORKING CAPITAL 24 76

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 5,529 1,741 Distributions to holders of redeemable units (87) (130) Amounts paid on redemption of redeemable units (12,797) (14,993) (7,355) (13,382)

NET INCREASE (DECREASE) IN CASH 606 (53)

CASH—BEGINNING OF YEAR 8 61

CASH—END OF YEAR 614 8

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Interest 877 1,179

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

85 BRIDGEHOUSE CANADIAN BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for face value)

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME Federal Government 339,000 Canada Housing Trust No. 1 0.45% Mar 15/2025 $ 339 $ 341 1.1 378,000 Canada Housing Trust No. 1 0.95% Jun 15/2025 384 384 1.2 302,000 Canada Housing Trust No. 1 1.50% Dec 15/2021 303 306 1.0 398,000 Canada Housing Trust No. 1 1.95% Dec 15/2025 424 424 1.3 1,074,000 Canada Housing Trust No. 1 2.35% Sep 15/2023 1,133 1,132 3.6 1,995,000 Canada Housing Trust No. 1 2.40% Dec 15/2022 2,046 2,078 6.5 500,000 Canada Housing Trust No. 1 2.55% Dec 15/2023 533 532 1.7 603,000 Canada Housing Trust No. 1 2.90% Jun 15/2024 657 653 2.0 749,000 Government of Canada 0.50% Sep 01/2025 753 753 2.4 212,000 Government of Canada 2.00% Dec 01/2051 252 255 0.8 94,000 Government of Canada 5.00% Jun 01/2037 151 152 0.5 6,975 7,010 22.1

Provincial Government 378,000 Province of Alberta 2.55% Jun 01/2027 412 415 1.3 241,000 Province of Alberta 3.05% Dec 01/2048 232 281 0.9 118,000 Province of Alberta 3.10% Jun 01/2050 126 140 0.4 289,000 Province of Alberta 3.50% Jun 01/2031 324 345 1.1 82,000 Province of British Columbia 2.95% Dec 18/2028 84 94 0.3 497,000 Province of British Columbia 2.95% Jun 18/2050 523 607 1.9 70,000 Province of Manitoba 2.85% Sep 05/2046 65 79 0.3 114,000 Province of Manitoba 3.20% Mar 05/2050 125 139 0.4 134,000 Province of Nova Scotia 4.40% Jun 01/2042 153 188 0.6 243,000 Province of Ontario 1.90% Dec 02/2051 233 238 0.8 502,000 Province of Ontario 2.40% Jun 02/2026 539 544 1.7 130,000 Province of Ontario 2.60% Jun 02/2025 139 141 0.4 421,000 Province of Ontario 2.65% Dec 02/2050 472 481 1.5 931,000 Province of Ontario 2.80% Jun 02/2048 972 1,083 3.4 1,565,000 Province of Ontario 2.85% Jun 02/2023 1,658 1,658 5.2 588,000 Province of Ontario 3.45% Jun 02/2045 631 749 2.4 606,000 Province of Ontario 3.50% Jun 02/2024 670 667 2.1 140,000 Province of Quebec 2.75% Sep 01/2025 149 153 0.5 327,000 Province of Quebec 3.10% Dec 01/2051 359 411 1.3 674,000 Province of Quebec 3.50% Dec 01/2048 744 888 2.8 544,000 Province of Quebec 6.25% Jun 01/2032 765 817 2.6 57,000 Province of Saskatchewan 2.75% Dec 02/2046 55 64 0.2 188,000 Province of Saskatchewan 3.10% Jun 02/2050 210 226 0.7 9,640 10,408 32.8

Corporate 71,000 407 International Inc. 3.65% Sep 08/2044 71 85 0.3 119,000 AltaLink, LP 3.99% Jun 30/2042 134 149 0.5 447,000 Bank of Montreal 2.28% Jul 29/2024 453 470 1.5 169,000 Bank of Montreal 2.85% Mar 06/2024 171 180 0.6 28,000 Bell Canada Inc. 2.50% May 14/2030 28 29 0.1 95,000 Bell Canada Inc. 3.35% Mar 12/2025 103 104 0.3 72,000 Bell Canada Inc. 3.50% Sep 30/2050 69 76 0.2 130,000 Brookﬁeld Infrastructure Finance ULC 2.86% Sep 01/2032 130 134 0.4 498,000 Canadian Imperial Bank of Commerce 2.43% Jun 09/2023 504 519 1.6 118,000 Canadian Imperial Bank of Commerce 3.29% Jan 15/2024 118 127 0.4 90,000 Canadian Natural Resources, Ltd. 1.45% Nov 16/2023 90 91 0.3 129,000 Choice Properties Limited Partnership 3.60% Sep 20/2021 133 131 0.4 163,000 Choice Properties Real Estate Investment Trust 2.85% May 21/2027 163 174 0.6 127,000 Choice Properties Real Estate Investment Trust 3.56% Sep 09/2024 133 138 0.4 165,000 Choice Properties Real Estate Investment Trust 4.18% Mar 08/2028 165 190 0.6 72,000 Enbridge Gas Inc. 3.65% Apr 01/2050 86 88 0.3 251,000 Enbridge Inc. 3.19% Dec 05/2022 263 263 0.8 198,000 Enbridge Inc. 3.20% Jun 08/2027 207 216 0.7 499,000 Enbridge Inc. 5.38% Sep 27/2077 494 530 1.7 270,000 Enbridge Pipelines Inc. 4.13% Aug 09/2046 269 308 1.0 385,000 Federated Co-operatives Limited 3.92% Jun 17/2025 383 414 1.3 149,000 Federation des Caisses Desjardins du Quebec 2.42% Oct 04/2024 149 157 0.5 134,000 Federation des Caisses Desjardins du Quebec 2.86% May 26/2030 134 143 0.5 230,000 Greater Toronto Airports Authority 1.54% May 03/2028 230 235 0.7 94,000 Greater Toronto Airports Authority 2.75% Oct 17/2039 95 99 0.3 61,000 Great-West Lifeco Inc. 2.98% Jul 08/2050 61 63 0.2 40,000 Heathrow Funding Limited 3.66% Jan 13/2033 40 42 0.1 214,000 Heathrow Funding Limited 3.78% Sep 04/2032 220 231 0.7 120,000 Honda Canada Finance Inc. 1.34% Mar 17/2026 120 121 0.4 511,000 HSBC Bank Canada 2.25% Sep 15/2022 511 526 1.7 425,000 HSBC Bank Canada 2.54% Jan 31/2023 436 442 1.4 244,000 HSBC Bank Canada 3.25% Sep 15/2023 260 260 0.8 254,000 Manulife Financial Corporation 2.24% May 12/2030 254 265 0.8 87,000 Metropolitan Life Global Funding I 3.39% Apr 09/2030 87 98 0.3 225,000 Muskrat Falls / Labrador Transmission Assets Funding Trust 3.83% Jun 01/2037 252 296 0.9 157,000 Muskrat Falls / Labrador Transmission Assets Funding Trust 3.86% Dec 01/2048 188 223 0.7 147,000 National Bank of Canada 1.57% Aug 18/2026 147 150 0.5 368,000 North West Redwater Partnership / NWR Financing Co., Ltd. 4.25% Jun 01/2029 408 435 1.4 130,000 North West Redwater Partnership / NWR Financing Co., Ltd. 4.35% Jan 10/2039 130 153 0.5 260,000 Pembina Pipeline Corporation 3.71% Aug 11/2026 281 288 0.9 44,000 Pembina Pipeline Corporation 4.67% May 28/2050 44 50 0.2

86 BRIDGEHOUSE CANADIAN BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for face value)

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME (continued) Corporate 148,000 Royal Bank of Canada 2.09% Jun 30/2030 $ 148 $ 153 0.5 456,000 Royal Bank of Canada 3.30% Sep 26/2023 488 488 1.5 432,937 Royal Ofﬁce Finance LP 5.21% Nov 12/2037 521 566 1.8 339,000 SmartCentres Real Estate Investment Trust 2.76% Jun 23/2021 340 342 1.1 69,000 SmartCentres Real Estate Investment Trust 3.19% Jun 11/2027 69 74 0.2 99,000 SmartCentres Real Estate Investment Trust 3.73% Jul 22/2022 99 104 0.3 132,000 TELUS Corporation 2.75% Jul 08/2026 141 142 0.5 135,000 The 55 Ontario School Board Trust 5.90% Jun 02/2033 173 195 0.6 293,000 The Bank of Nova Scotia 1.83% Apr 27/2022 285 299 0.9 100,000 The Bank of Nova Scotia 2.16% Feb 03/2025 103 105 0.3 371,000 The Bank of Nova Scotia 2.38% May 01/2023 378 386 1.2 186,000 The Bank of Nova Scotia 2.49% Sep 23/2024 186 197 0.6 230,000 The Toronto-Dominion Bank 1.13% Dec 09/2025 230 231 0.7 308,000 The Toronto-Dominion Bank 3.01% May 30/2023 308 326 1.0 145,000 Thomson Reuters Corp. 2.24% May 14/2025 151 152 0.5 389,000 TransCanada PipeLines Limited 3.80% Apr 05/2027 396 439 1.4 181,000 TransCanada PipeLines Limited 4.18% Jul 03/2048 181 202 0.6 89,000 TransCanada PipeLines Limited 4.35% Jun 06/2046 92 102 0.3 174,000 TransCanada Trust 4.65% May 18/2077 174 179 0.6 68,000 Verizon Communications Inc. 3.63% May 16/2050 67 75 0.2 90,000 VW Credit Canada, Inc. 1.50% Sep 23/2025 90 91 0.3 294,000 Wells Fargo & Company 2.49% Feb 18/2027 290 311 1.0 93,000 Wells Fargo & Company 2.51% Oct 27/2023 93 97 0.3 195,000 Wells Fargo & Company 2.98% May 19/2026 191 211 0.7 13,408 14,160 44.6

Total Fixed Income 30,023 31,578 99.5

Total Investments 30,023 31,578 99.5 Other Assets Less Liabilities 144 0.5 Net Assets Attributable to Holders of Redeemable Units 31,722 100.0

87 BRIDGEHOUSE CANADIAN BOND FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Interest Rate Risk Essentially all of the assets and liabilities of the Fund are ﬁnancial instruments. At December 31, 2020 and December 31, 2019, the Fund’s exposure to interest These ﬁnancial instruments comprise the following: rate risk by remaining term to maturity was as follows:

Portfolio by Industry Exposure DECEMBER 31, 2020 DECEMBER 31, 2019 DEC. 31 DEC. 31 DEBT % OF % OF INSTRUMENTS ($000) NET ASSETS ($000) NET ASSETS 2020 (%) 2019 (%) Less than 1 year 779 2.5 251 0.7 Fixed-income securities 1 to 3 years 9,200 29.0 12,228 33.2 Corporate 44.6 44.9 3 to 5 years 5,883 18.5 5,225 14.2 Federal Government 22.1 28.6 Greater than 5 years 15,716 49.5 18,901 51.4 Provincial Government 32.8 25.7 Short-term investments - 0.3 Total 31,578 99.5 36,605 99.5 Total ﬁnancial instruments at fair value 99.5 99.5 Total other assets less liabilities at cost or amortized cost 0.5 0.5 At December 31, 2020, if the prevailing interest rates had risen or declined by Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 0.25% (December 31, 2019—0.25%), assuming a parallel shift in the yield curve, with all other variables held constant, net assets would have decreased or increased, respectively, by approximately $0.6 million (December 31, 2019—$0.7 million), or 1.9% (December 31, 2019—1.9%) of total net assets. FAIR VALUE MEASUREMENTS The Fund’s sensitivity to interest rate changes was estimated using the weighted Below is a summary of the inputs used as at December 31, 2020 and December average duration of the bonds. In practice, the actual results may differ from this 31, 2019 in valuing the Fund’s investments carried at fair values. sensitivity analysis and the difference could be material.

DECEMBER 31, 2020 QUOTED PRICES SIGNIFICANT Credit Risk IN ACTIVE OTHER SIGNIFICANT At December 31, 2020 and December 31, 2019, the Fund was invested in debt MARKETS FOR OBSERVABLE UNOBSERVABLE securities with the following credit ratings: IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) DECEMBER 31, 2020 DECEMBER 31, 2019 DEBT SECURITIES % OF TOTAL % OF TOTAL Fixed-income BY CREDIT DEBT % OF DEBT % OF securities - 31,578 - 31,578 RATING* INSTRUMENTS NET ASSETS INSTRUMENTS NET ASSETS Total Investments - 31,578 - 31,578 AAA/Aaa 27.9 27.7 34.8 34.5 AA/Aa 33.0 32.9 35.7 35.4 A/A 19.6 19.5 16.4 16.3 DECEMBER 31, 2019 BBB/Baa 19.5 19.4 13.1 13.0 QUOTED PRICES SIGNIFICANT Total 100.0 99.5 100.0 99.2 IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE *Excludes cash & cash equivalents IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Credit ratings are obtained from Standard & Poor’s, Moody’s and Dominion Bond ($000) ($000) ($000) ($000) Rating Service. When more than one rating is obtained for a security, the average Fixed-income rating has been used. securities - 36,490 - 36,490 Short-term investments - 115 - 115 Total Investments - 36,605 - 36,605 SECURITIES LENDING The aggregate market value of all securities loaned by a fund cannot exceed 50% During the years ended December 31, 2020 and December 31, 2019, there were of the net assets of the applicable Fund. The Funds receive collateral of at least no signiﬁcant transfers between Level 1 and 2 priced securities. 102% of the value of the securities on loan. Collateral may comprise of obligations of or guaranteed by the Government of Canada, or a province thereof, or by the United States government or its agencies.

FINANCIAL INSTRUMENTS RISKS As at December 31, 2020 and 2019 the fair value of securities on loan and The fundamental investment objective of the Bridgehouse Canadian Bond Fund is collateral received was $Nil. to achieve long-term capital appreciation and income by investing primarily in high-quality Canadian ﬁxed income securities. OFFSETTING OF FINANCIAL INSTRUMENTS Market Price Risk The Fund does not enter into any enforceable master netting arrangement. As at December 31, 2020, if the Fund’s benchmark (FTSE Canada Universe Bond Index) increased or decreased by 10% (December 31, 2019—10%), with all other variables held constant, the net assets of the Fund would have increased or decreased, respectively, by approximately $3.1 million (December 31, 2019—$3.2 million), or 9.7% (December 31, 2019—8.6%) of total net assets. In practice, the historical correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different.

Foreign Currency Risk The Fund’s investments are denominated primarily in Canadian dollars, which is the Fund’s functional currency. Therefore, the ﬁnancial instruments in the Fund are not subject to signiﬁcant risk of currency movements.

88 The notes at the back of this document are an integral part of these ﬁnancial statements. GQG PARTNERS GLOBAL QUALITY EQUITY FUND STATEMENT OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020

ASSETS CURRENT ASSETS Investments $ 104,392 Cash 7,346 Receivable for redeemable unit subscriptions 146 Receivable from securities sold 678 Dividends and accrued interest receivable 11 Receivable for open foreign currency spot or forward contracts 9 112,582

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 5,279 Payable for redeemable unit redemptions 41 Payable for open foreign currency spot or forward contracts 10 5,330

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 107,252 Cost of investments 105,407

Net assets attributable to holders of redeemable units, Series A $ 5,264 Number of redeemable units outstanding, Series A 555 Net assets attributable to holders of redeemable units per unit, Series A 9.48 Net assets attributable to holders of redeemable units per unit, Series A (USD) 7.44

Net assets attributable to holders of redeemable units, Series F $ 10,815 Number of redeemable units outstanding, Series F 1,138 Net assets attributable to holders of redeemable units per unit, Series F 9.50 Net assets attributable to holders of redeemable units per unit, Series F (USD) 7.46

Net assets attributable to holders of redeemable units, Series I $ 91,173 Number of redeemable units outstanding, Series I 9,569 Net assets attributable to holders of redeemable units per unit, Series I 9.53 Net assets attributable to holders of redeemable units per unit, Series I (USD) 7.48

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

89 GQG PARTNERS GLOBAL QUALITY EQUITY FUND STATEMENT OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the period ended December 31, 2020

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 87 Management Fee Rebates income 1 Net realized gain (loss) on sale of investments (3,043) Net change in unrealized appreciation (depreciation) of investments (1,015) Net gain (loss) on investments (3,970)

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (232) Net change in unrealized appreciation (depreciation) of foreign exchange contracts (1) Net gain (loss) on derivatives (233)

Net realized gain (loss) on foreign currencies 101 Net change in unrealized appreciation (depreciation) of foreign currencies 12 Total net income (loss) (4,090)

EXPENSES (note 6) Management fees 27 Audit 1 Custody and fund accounting 1 Unitholder reporting 1 Administration and transfer agent fees 16 Foreign withholding taxes 14 Transaction costs (note 3) 73 133 Expenses absorbed (15) Total expenses net of absorption 118

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (152) Series F (275) Series I (3,781) TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (4,208)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.51) Series F (0.46) Series I (0.59)

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

90 GQG PARTNERS GLOBAL QUALITY EQUITY FUND STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

Amounts in thousands (except for number of units) For the period ended December 31, SERIES A SERIES F SERIES I FUND TOTAL 2020 2020 2020 2020 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF PERIOD $- $- $- $-

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (152) (275) (3,781) (4,208)

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (1) (17) (18) - (1) (17) (18)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 5,464 11,275 94,954 111,693 Reinvested distributions to holders of redeemable units - 1 17 18 Net proceeds/(payments) from/for redeemable units transferred in/(out) (15) 15 - - Payments for redeemable units redeemed (33) (200) - (233) 5,416 11,091 94,971 111,478

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE PERIOD 5,264 10,815 91,173 107,252

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF PERIOD $ 5,264 $ 10,815 $ 91,173 $ 107,252

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of period - - - Redeemable units issued for cash 560,284 1,157,206 9,567,483 Redeemable units issued for reinvested distributions - 147 1,775 Net redeemable units transferred in/(out) (1,542) 1,541 - Redeemable units redeemed (3,440) (20,921) - BALANCE, END OF PERIOD 555,302 1,137,973 9,569,258

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

91 GQG PARTNERS GLOBAL QUALITY EQUITY FUND STATEMENT OF CASH FLOWS

Amounts in thousands For the period ended December 31, 2020

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (4,208)

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 3,043 Net change in unrealized (appreciation) depreciation of investments 1,015 Net change in unrealized (appreciation) depreciation of foreign exchange contracts 1 Purchase of investments (125,330) Proceeds from sale of investments 21,481 (103,998)

CHANGE IN NON-CASH WORKING CAPITAL (11)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 111,547 Amounts paid on redemption of redeemable units (192) 111,355

NET INCREASE (DECREASE) IN CASH 7,346

CASH—BEGINNING OF YEAR -

CASH—END OF YEAR 7,346

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 62

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

92 GQG PARTNERS GLOBAL QUALITY EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Pharmaceuticals 4,731 Lockheed Martin Corporation $ 2,333 $ 2,139 2.0 12,329 AbbVie Inc. $ 1,666 $ 1,682 1.6 27,876 AstraZeneca PLC 3,825 3,538 3.3 Automobiles 16,984 AstraZeneca PLC ADR 1,125 1,081 1.0 4,510 Volkswagen AG Preferred 1,047 1,073 1.0 16,266 Bristol-Myers Squibb Company 1,320 1,285 1.2 7,690 Eli Lilly and Company 1,602 1,654 1.5 Capital Markets 4,417 Novartis AG 527 529 0.5 27,475 Morgan Stanley 2,253 2,398 2.2 39,726 Novo Nordisk A/S Cl. B 3,664 3,528 3.3 13,729 13,297 12.4 Chemicals 8,348 Air Liquide SA 1,724 1,742 1.6 Semiconductors & Semiconductor Equipment 22,654 Advanced Micro Devices Incorporated 2,549 2,646 2.5 Commercial Banks 162,991 Banco Bilbao Vizcaya Argentaria SA 1,019 1,028 1.0 Software 272,704 Banco Santander, SA 1,138 1,083 1.0 5,626 Adobe Inc. 3,650 3,583 3.3 16,583 BNP Paribas SA 1,138 1,114 1.0 21,065 Microsoft Corporation 6,027 5,967 5.6 32,919 Sberbank of Russia PJSC ADR 609 608 0.6 5,513 Salesforce.com, Inc. 1,795 1,563 1.4 3,904 3,833 3.6 6,020 ServiceNow, Inc. 4,134 4,220 3.9 15,606 15,333 14.2 Diversiﬁed Financial Services 88,973 Bank of America Corporation 3,290 3,435 3.2 Technology Hardware, Storage & Peripherals 6,351 NVIDIA Corporation 4,579 4,224 3.9 Electric Utilities 553 Samsung Electronics Co., Ltd. GDR 1,149 1,285 1.2 168,476 Enel SPA 2,014 2,182 2.0 5,728 5,509 5.1

Electrical Equipment 4,477 Schneider Electric SE 845 824 0.8 Total Investments 105,407 104,392 97.3 Equity Real Estate Investment Trusts (REITs) Foreign Exchange Contracts (a) (1) - 1,952 Equinix, Inc. 2,005 1,775 1.7 Other Assets Less Liabilities 2,861 2.7 Net Assets Attributable to Holders of Food Products Redeemable Units 107,252 100.0 28,167 Nestlé SA 4,296 4,239 4.0

Health Care Equipment & Supplies (a) Foreign Exchange Contracts 28,619 Abbott Laboratories 4,049 3,991 3.7 SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED Health Care Providers & Services DATE CURRENCY CURRENCY PRICE GAIN (LOSS) 4,281 Humana Inc. 2,381 2,237 2.1 0.16496 to 9,761 UnitedHealth Group Incorporated 4,225 4,359 4.1 Jan 4, 2021 CAD 681 HKD 4,126 0.16496 $ 3 6,606 6,596 6.2 Jan 4, 2021 CAD 19 USD 15 1.27150 - 0.68990 to Household Products Jan 4, 2021 CHF 525 CAD 761 0.68990 (6) 22,241 The Procter & Gamble Company 4,124 3,941 3.7 0.63629 to Jan 4, 2021 EUR 183 CAD 288 0.63629 (3) Insurance 0.78647 to 49,241 Ping An Insurance (Group) Company of Jan 4, 2021 USD 2,674 CAD 3,401 0.78647 6 China, Ltd. Cl. H 780 763 0.7 0.64193 to 15,699 The Progressive Corporation 1,978 1,977 1.8 Jan 5, 2021 EUR 189 CAD 295 0.64193 (1) 2,758 2,740 2.5 Jan 5, 2021 USD 82 CAD 105 0.78649 - $ (1) Interactive Media & Services 1,843 Alphabet Inc. Cl. C 3,953 4,112 3.8 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; Source—Standard & 10,305 Facebook, Inc. Cl. A 3,653 3,585 3.3 Poor's Credit Rating Agency 3,822 Pinterest, Inc. Cl. A 278 321 0.3 24,389 Tencent Holdings Limited 2,328 2,234 2.1 10,212 10,252 9.5

Internet & Direct Marketing Retail 1,644 Amazon.com, Inc. 7,094 6,819 6.4

IT Services 6,108 MasterCard Incorporated Cl. A 2,689 2,777 2.6 6,422 PayPal Holdings, Inc. 1,775 1,915 1.8 10,997 Visa Inc. Cl. A 2,914 3,063 2.8 7,378 7,755 7.2

Metals & Mining 44,184 Vale SA ADR 941 943 0.9

Multi-Utilities 11,966 CMS Energy Corp. 922 930 0.9

93 GQG PARTNERS GLOBAL QUALITY EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Bridgehouse Asset Managers subscribes to the services of a third-party valuation Essentially all of the assets and liabilities of the Fund are financial instruments. service provider to provide fair value adjustments, where applicable, to the prices These financial instruments comprise the following: of foreign securities due to changes in the value of securities in North American markets following the closure of the foreign markets. The parameters used to Portfolio by Industry Exposure apply the fair value adjustments are based on observable market data, and as DEC. 31 such, the foreign securities are considered Level 2 priced securities. 2020 (%) During the period ended December 31, 2020, there were no significant transfers Equities between Level 1 and 2. Aerospace & Defense 2.0 Automobiles 1.0 Capital Markets 2.2 Chemicals 1.6 FINANCIAL INSTRUMENTS RISKS Commercial Banks 3.6 The investment objective of the GQG Partners Global Quality Equity Fund is to Diversified Financial Services 3.2 seek long term capital appreciation by investing primarily in the equity securities Electric Utilities 2.0 of issuers based around the globe. Electrical Equipment 0.8 Equity Real Estate Investment Trusts (REITs) 1.7 Food Products 4.0 Market Price Risk Health Care Equipment & Supplies 3.7 Health Care Providers & Services 6.2 As at December 31, 2020, if the Fund’s benchmark (MSCI All Country World Household Products 3.7 Index) increased or decreased by 10%, with all other variables held constant, the Insurance 2.5 net assets of the Fund would have increased or decreased, respectively, by Interactive Media & Services 9.5 approximately $10.4 million or 9.7% of total net assets. This impact is estimated Internet & Direct Marketing Retail 6.4 based on the historical correlation between the return of Series I units of the Fund IT Services 7.2 as compared to the return of the Fund’s benchmark. In practice, the historical Metals & Mining 0.9 correlation may not be representative of the future correlation and, accordingly, Multi-Utilities 0.9 the impact on net assets could be materially different. Pharmaceuticals 12.4 Semiconductors & Semiconductor Equipment 2.5 Software 14.2 Technology Hardware, Storage & Peripherals 5.1 Foreign Currency Risk The tables below indicate the currencies to which the Fund had significant Total investments 97.3 exposure on its financial instruments as at December 31, 2020 in Canadian dollar Foreign exchange contracts, net - terms, including the underlying principal of forward exchange contracts, if any. Total financial instruments at fair value 97.3 Total other assets less liabilities at cost or amortized cost 2.7 DECEMBER 31, 2020 Total Net Assets Attributable to Holders of Redeemable Units 100.0 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Danish Krone 3,528 - - 3,528 Portfolio by Country Exposure Euro 9,046 - - 9,046 Hong Kong Dollar 2,998 - - 2,998 DEC. 31 Pound Sterling 3,538 - - 3,538 2020 (%) Swiss Franc 4,768 - - 4,768 Equities U.S. Dollar 80,514 19 (442) 80,091 Brazil 0.9 Total 104,392 19 (442) 103,969 China 2.8 Denmark 3.3 % of Net Assets 97.3 - (0.4) 96.9 France 3.4 Germany 1.0 As at December 31, 2020, if the Canadian dollar had strengthened or weakened Italy 2.0 by 2% in relation to all foreign currencies, with all other variables held constant, Russia 0.6 the Fund’s net assets would have decreased or increased, respectively, by South Korea 1.2 Spain 2.0 approximately $2.1 million or 1.9% of total net assets. In practice, the actual Switzerland 4.5 results may differ from this sensitivity analysis and the difference could United Kingdom 4.3 be material. United States 71.3 Total investments 97.3 Foreign exchange contracts, net - Interest Rate Risk The substantial majority of the Fund’s financial assets are equity shares which do Total financial instruments at fair value 97.3 not pay interest. As a result, the Fund is not subject to significant amounts of risk Total other assets less liabilities at cost or amortized cost 2.7 due to fluctuations in the prevailing levels of market interest rate. Total Net Assets Attributable to Holders of Redeemable Units 100.0

Credit Risk The Fund enters into foreign exchange contracts to buy and sell currencies for the FAIR VALUE MEASUREMENTS purpose of settling foreign securities transactions. These are short term spot Below is a summary of the inputs used as at December 31, 2020 in valuing the settlements carried out with approved counterparties. The exposure to credit risk Fund’s investments carried at fair values. on these contracts is considered minimal as the transactions are settled and paid for upon delivery. DECEMBER 31, 2020 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 80,515 23,877 - 104,392 Total Investments 80,515 23,877 - 104,392 Foreign Exchange Contracts, Net - (1) - (1)

94 The notes at the back of this document are an integral part of these ﬁnancial statements. GQG PARTNERS GLOBAL QUALITY EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

OFFSETTING OF FINANCIAL INSTRUMENTS The fund enters into various master netting agreements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. The following table presents ﬁnancial instruments that are offset, or subject to enforceable master netting agreements or other similar agreements but that are not offset, as at December 31, 2020. The ‘Net’ column shows what the impact on the Fund’s Statements of Financial Position would be if all set-off rights were exercised.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 9 (9) - - Payable for open foreign currency spot or exchange contracts (10) 9 - (1)

The notes at the back of this document are an integral part of these ﬁnancial statements. 95 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND STATEMENT OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020

ASSETS CURRENT ASSETS Investments $ 24,049 Cash 1,617 Receivable for redeemable unit subscriptions 32 Receivable from securities sold 70 Dividends and accrued interest receivable 12 Receivable for open foreign currency spot or forward contracts 1 25,781

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 1,169 Payable for open foreign currency spot or forward contracts 5 1,174

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 24,607 Cost of investments 23,502

Net assets attributable to holders of redeemable units, Series A $ 425 Number of redeemable units outstanding, Series A 43 Net assets attributable to holders of redeemable units per unit, Series A 9.99 Net assets attributable to holders of redeemable units per unit, Series A (USD) 7.84

Net assets attributable to holders of redeemable units, Series F $ 9,664 Number of redeemable units outstanding, Series F 965 Net assets attributable to holders of redeemable units per unit, Series F 10.01 Net assets attributable to holders of redeemable units per unit, Series F (USD) 7.86

Net assets attributable to holders of redeemable units, Series I $ 14,518 Number of redeemable units outstanding, Series I 1,446 Net assets attributable to holders of redeemable units per unit, Series I 10.04 Net assets attributable to holders of redeemable units per unit, Series I (USD) 7.88

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

96 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND STATEMENT OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the period ended December 31, 2020

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 15 Management Fee Rebates income 1 Net realized gain (loss) on sale of investments (307) Net change in unrealized appreciation (depreciation) of investments 547 Net gain (loss) on investments 256

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (2) Net change in unrealized appreciation (depreciation) of foreign exchange contracts (4) Net gain (loss) on derivatives (6)

Net realized gain (loss) on foreign currencies (42) Net change in unrealized appreciation (depreciation) of foreign currencies 4 Total net income (loss) 212

EXPENSES (note 6) Management fees 8 Audit 1 Custody and fund accounting 2 Unitholder reporting 1 Administration and transfer agent fees 10 Foreign withholding taxes 1 Transaction costs (note 3) 39 62 Expenses absorbed (12) Total expenses net of absorption 50

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 1 Series F (2) Series I 163 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 162

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.05 Series F (0.01) Series I 0.33

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

97 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1 (2) 163 162

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Return of capital - (1) - (1) - (1) - (1)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 424 9,682 14,370 24,476 Reinvested distributions to holders of redeemable units - 1 - 1 Payments for redeemable units redeemed - (16) (15) (31) 424 9,667 14,355 24,446

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE PERIOD 425 9,664 14,518 24,607

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF PERIOD $ 425 $ 9,664 $ 14,518 $ 24,607

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of period - - - Redeemable units issued for cash 42,533 966,448 1,447,324 Redeemable units issued for reinvested distributions - 116 - Redeemable units redeemed - (1,575) (1,505) BALANCE, END OF PERIOD 42,533 964,989 1,445,819

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

98 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND STATEMENT OF CASH FLOWS

Amounts in thousands For the period ended December 31, 2020

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 162

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 307 Net change in unrealized (appreciation) depreciation of investments (547) Net change in unrealized (appreciation) depreciation of foreign exchange contracts 4 Purchase of investments (25,450) Proceeds from sale of investments 2,740 (22,784)

CHANGE IN NON-CASH WORKING CAPITAL (12)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 24,444 Amounts paid on redemption of redeemable units (31) 24,413

NET INCREASE (DECREASE) IN CASH 1,617

CASH—BEGINNING OF YEAR -

CASH—END OF YEAR 1,617

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 2

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

99 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Air Freight & Logistics Insurance 1,734 DSV Panalpina A/S $ 364 $ 371 1.5 1,081 Aon PLC Cl. A $ 286 $ 291 1.2 630 Muenchener Rueckversicherungs- Automobiles Gesellschaft AG 231 238 0.9 1,527 Volkswagen AG Preferred 349 363 1.5 23,752 Ping An Insurance (Group) Company of China, Ltd. Cl. H 367 368 1.5 Beverages 884 897 3.6 1,149 Pernod Ricard SA 281 281 1.1 418 Pernod Ricard SA ADR 19 20 0.1 Interactive Media & Services 300 301 1.2 97 Alphabet Inc. Cl. A 216 217 0.9 101 Alphabet Inc. Cl. C 227 225 0.9 Biotechnology 6,351 Tencent Holdings Limited 613 582 2.4 1,615 Genmab A/S 802 834 3.4 1,056 1,024 4.2 1,225 Genmab A/S ADR 58 63 0.2 860 897 3.6 Internet & Direct Marketing Retail 2,632 JD.com, Inc. ADR 298 295 1.2 Capital Markets 1 Meituan Cl. B - - - 4,529 London Stock Exchange Group PLC 655 712 2.9 298 295 1.2 1,605 London Stock Exchange Group PLC ADR 59 64 0.3 714 776 3.2 Internet Software & Services 373 Mercadolibre Inc. 735 796 3.2 Chemicals 3,683 Air Liquide SA 779 769 3.1 IT Services 1,972 Accenture PLC Cl. A 638 656 2.7 Commercial Banks 76 Adyen NV 205 225 0.9 56,672 Banco Bilbao Vizcaya Argentaria SA 348 358 1.4 558 Capgemini SE 111 110 0.4 86,634 Banco Santander, SA 349 344 1.4 1,368 Visa Inc. Cl. A 367 381 1.6 5,326 BNP Paribas SA 368 358 1.5 1,321 1,372 5.6 22,106 Credit Agricole SA 359 356 1.4 10,998 ICICI Bank Limited ADR 204 208 0.8 Life Sciences Tools & Services 318,107 Industrial and Commercial Bank of 507 Lonza Group AG 412 416 1.7 China Limited Cl. H 256 260 1.1 1,589 KBC Group NV 146 141 0.6 Metals & Mining 17,039 Sberbank of Russia PJSC ADR 311 315 1.3 61,746 Glencore PLC 242 249 1.0 2,341 2,340 9.5 32,271 Vale SA ADR 638 689 2.8 880 938 3.8 Communications Equipment 23,062 Telefonaktiebolaget LM Ericsson Series Personal Products B 358 350 1.4 882 L'Oréal SA 416 428 1.8 347 L'Oreal SA ADR 31 34 0.1 Diversiﬁed Consumer Services 4,230 Unilever PLC 327 326 1.3 3,752 Evolution Gaming Group AB 424 481 1.9 774 788 3.2 183 Evolution Gaming Group AB ADR 19 23 0.1 443 504 2.0 Pharmaceuticals 8,060 AstraZeneca PLC 1,077 1,023 4.2 Diversiﬁed Telecommunications Services 1,137 AstraZeneca PLC ADR 78 72 0.3 15,611 Cellnex Telecom, SA 1,254 1,193 4.8 3,076 Novartis AG 367 369 1.5 830 Novo Nordisk A/S ADR 77 74 0.3 Electric Utilities 10,556 Novo Nordisk A/S Cl. B 940 937 3.8 43,335 Enel SPA 546 561 2.3 2,539 2,475 10.1 2,692 Enel SPA ADR 32 35 0.1 578 596 2.4 Semiconductors & Semiconductor Equipment 1,990 ASML Holding NV 1,129 1,227 5.0 Electrical Equipment 160 ASML Holding NV NY Shares 79 99 0.4 2,501 Schneider Electric SE 448 460 1.9 3,883 Taiwan Semiconductor Manufacturing 713 Schneider Electric SE ADR 24 26 0.1 Company, Ltd. ADR 492 539 2.2 472 486 2.0 1,700 1,865 7.6

Entertainment Technology Hardware, Storage & Peripherals 5,517 NetEase, Inc. 127 134 0.5 669 NVIDIA Corporation 463 445 1.8 994 NetEase, Inc. ADR 117 122 0.5 351 Samsung Electronics Co., Ltd. GDR 707 816 3.3 244 256 1.0 1,170 1,261 5.1

Food Products Tobacco 5,825 Nestlé SA 852 877 3.6 12,806 British American Tobacco PLC 610 605 2.5

Health Care Equipment & Supplies 4,534 Abbott Laboratories 633 632 2.6 Total Investments 23,502 24,049 97.7 Hotels, Restaurants & Leisure Foreign Exchange Contracts (a) (4) - 281 Flutter Entertainment Public Limited Other Assets Less Liabilities 562 2.3 Company 69 74 0.3 Net Assets Attributable to Holders of Redeemable Units 24,607 100.0 Household Durables 2,226 Sony Corporation 272 286 1.2

Independent Power And Renewable Electricity Producers 11,747 Algonquin Power & Utilities Corp. 241 246 1.0

100 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 70 HKD 424 0.16496 to 0.16496 $ - Jan 4, 2021 CHF 107 CAD 156 0.68990 to 0.68990 (1) Jan 4, 2021 EUR 131 CAD 207 0.63629 to 0.63630 (2) Jan 4, 2021 GBP 33 CAD 58 0.57458 to 0.57458 - Jan 4, 2021 HKD 311 CAD 51 6.06204 to 6.06216 - Jan 4, 2021 USD 229 CAD 291 0.78647 to 0.78648 - Jan 5, 2021 EUR 92 CAD 144 0.64193 to 0.64193 - Jan 5, 2021 HKD 1,149 CAD 189 6.06307 to 6.08000 (1) $ (4) Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; Source—Standard & Poor's Credit Rating Agency

101 GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FAIR VALUE MEASUREMENTS Essentially all of the assets and liabilities of the Fund are ﬁnancial instruments. Below is a summary of the inputs used as at December 31, 2020 in valuing the These ﬁnancial instruments comprise the following: Fund’s investments carried at fair values.

Portfolio by Industry Exposure DECEMBER 31, 2020 DEC. 31 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT 2020 (%) MARKETS FOR OBSERVABLE UNOBSERVABLE Equities IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Air Freight & Logistics 1.5 ($000) ($000) ($000) ($000) Automobiles 1.5 Beverages 1.2 Equities 7,709 16,340 - 24,049 Biotechnology 3.6 Total Investments 7,709 16,340 - 24,049 Capital Markets 3.2 Chemicals 3.1 Foreign Exchange Commercial Banks 9.5 Contracts, Net - (4) - (4) Communications Equipment 1.4 Diversified Consumer Services 2.0 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Diversified Telecommunications Services 4.8 service provider to provide fair value adjustments, where applicable, to the prices Electric Utilities 2.4 of foreign securities due to changes in the value of securities in North American Electrical Equipment 2.0 Entertainment 1.0 markets following the closure of the foreign markets. The parameters used to Food Products 3.6 apply the fair value adjustments are based on observable market data, and as Health Care Equipment & Supplies 2.6 such, the foreign securities are considered Level 2 priced securities. Hotels, Restaurants & Leisure 0.3 Household Durables 1.2 During the period ended December 31, 2020, there were no significant transfers Independent Power and Renewable Electricity Producers 1.0 between Level 1 and 2. Insurance 3.6 Interactive Media & Services 4.2 Internet & Direct Marketing Retail 1.2 Internet Software & Services 3.2 FINANCIAL INSTRUMENTS RISKS IT Services 5.6 The investment objective of the GQG Partners International Quality Equity Life Sciences Tools & Services 1.7 Fund is to seek long term capital appreciation by investing primarily in the Metals & Mining 3.8 equity securities of non-U.S. issuers, which may include issuers from Personal Products 3.2 emerging markets. Pharmaceuticals 10.1 Semiconductors & Semiconductor Equipment 7.6 Technology Hardware, Storage & Peripherals 5.1 Market Price Risk Tobacco 2.5 As at December 31, 2020, if the Fund’s benchmark (MSCI All Country World ex- Total investments 97.7 USA Index) increased or decreased by 10%, with all other variables held Foreign exchange contracts, net - constant, the net assets of the Fund would have increased or decreased, Total financial instruments at fair value 97.7 respectively, by approximately $2.4 million or 9.8% of total net assets. This Total other assets less liabilities at cost or amortized cost 2.3 impact is estimated based on the historical correlation between the return of Total Net Assets Attributable to Holders of Redeemable Units 100.0 Series I units of the Fund as compared to the return of the Fund’s benchmark. In practice, the historical correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be Portfolio by Country Exposure materially different. DEC. 31 2020 (%) Foreign Currency Risk Equities The tables below indicate the currencies to which the Fund had significant Argentina 3.2 exposure on its financial instruments as at December 31, 2020 in Canadian dollar Belgium 0.6 terms, including the underlying principal of forward exchange contracts, if any. Brazil 2.8 DECEMBER 31, 2020 Canada 1.0 INVESTMENTS CASH OTHER NET TOTAL China 7.2 CURRENCY ($000) ($000) ASSETS ($000) ($000) Denmark 9.2 France 11.5 Danish Krone 2,142 - - 2,142 Germany 2.4 Euro 7,738 - - 7,738 India 0.8 Hong Kong Dollar 1,344 - - 1,344 Ireland 3.0 Japanese Yen 286 - - 286 Italy 2.4 Pound Sterling 2,664 - 8 2,672 Japan 1.2 Swedish Krona 831 - - 831 Netherlands 6.3 Swiss Franc 1,661 - - 1,661 Russia 1.3 U.S. Dollar 7,137 - (58) 7,079 South Korea 3.3 Total 23,803 - (50) 23,753 Spain 7.6 Sweden 3.4 % of Net Assets 96.7 - (0.2) 96.5 Switzerland 7.8 Taiwan 2.2 As at December 31, 2020, if the Canadian dollar had strengthened or weakened United Kingdom 12.7 by 2% in relation to all foreign currencies, with all other variables held constant, United States 7.8 the Fund’s net assets would have decreased or increased, respectively, by Total investments 97.7 approximately $0.5 million or 1.9% of total net assets. In practice, the actual Foreign exchange contracts, net - results may differ from this sensitivity analysis and the difference could Total financial instruments at fair value 97.7 be material. Total other assets less liabilities at cost or amortized cost 2.3 Total Net Assets Attributable to Holders of Redeemable Units 100.0 Interest Rate Risk The substantial majority of the Fund’s financial assets are equity shares which do not pay interest. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rate.

102 The notes at the back of this document are an integral part of these ﬁnancial statements. GQG PARTNERS INTERNATIONAL QUALITY EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

OFFSETTING OF FINANCIAL INSTRUMENTS The fund enters into various master netting agreements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. The following table presents ﬁnancial instruments that are offset, or subject to enforceable master netting agreements or other similar agreements but that are not offset, as at December 31, 2020. The ‘Net’ column shows what the impact on the Fund’s Statements of Financial Position would be if all set-off rights were exercised.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 1 (1) - - Payable for open foreign currency spot or exchange contracts (5) 1 - (4)

The notes at the back of this document are an integral part of these ﬁnancial statements. 103 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund) STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 44,079 $ 25,556 Cash 180 715 Receivable for redeemable unit subscriptions 54 5 Dividends and accrued interest receivable 242 40 Receivable for open foreign currency spot or forward contracts 56 23 44,611 26,339

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 1 6 Payable for open foreign currency spot or forward contracts 16 4 17 10

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 44,594 $ 26,329 Cost of investments 44,433 23,312

Net assets attributable to holders of redeemable units, Series A $ 33,083 $ 13,626 Number of redeemable units outstanding, Series A 3,078 1,086 Net assets attributable to holders of redeemable units per unit, Series A 10.75 12.55 Net assets attributable to holders of redeemable units per unit, Series A (USD) 8.44 9.67

Net assets attributable to holders of redeemable units, Series F $ 10,091 $ 10,047 Number of redeemable units outstanding, Series F 904 781 Net assets attributable to holders of redeemable units per unit, Series F 11.16 12.87 Net assets attributable to holders of redeemable units per unit, Series F (USD) 8.77 9.91

Net assets attributable to holders of redeemable units, Series I $ - $ 1,494 Number of redeemable units outstanding, Series I - 121 Net assets attributable to holders of redeemable units per unit, Series I 10.83 12.35

Net assets attributable to holders of redeemable units, Series AH $ 1,032 $ 368 Number of redeemable units outstanding, Series AH 106 31 Net assets attributable to holders of redeemable units per unit, Series AH 9.77 11.70

Net assets attributable to holders of redeemable units, Series FH $ 387 $ 794 Number of redeemable units outstanding, Series FH 38 65 Net assets attributable to holders of redeemable units per unit, Series FH 10.16 12.16

Net assets attributable to holders of redeemable units, Series IH $ 1 $ - Number of redeemable units outstanding, Series IH - - Net assets attributable to holders of redeemable units per unit, Series IH 9.79 11.43

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

104 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund) STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 1,500 $ 606 Interest for distribution purposes - 1 Management Fee Rebates income 34 24 Net realized gain (loss) on sale of investments (233) 1,335 Net change in unrealized appreciation (depreciation) of investments (2,598) 1,601 Net gain (loss) on investments (1,297) 3,567

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 75 (45) Net change in unrealized appreciation (depreciation) of foreign exchange contracts 21 78 Net gain (loss) on derivatives 96 33

Other income 7 - Net realized gain (loss) on foreign currencies (31) 16 Net change in unrealized appreciation (depreciation) of foreign currencies 18 (1) Total net income (loss) (1,207) 3,615

EXPENSES (note 6) Management fees 652 337 Audit 9 3 Interest expense 2 - Independent review committee 4 1 Custody and fund accounting 42 32 Filing fees 26 24 Unitholder reporting 11 2 Administration and transfer agent fees 171 40 Foreign withholding taxes 193 78 Transaction costs (note 3) 86 28 1,196 545 Expenses absorbed (147) (39) Total expenses net of absorption 1,049 506

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (1,187) $ 1,541 Series F (842) 1,142 Series I (159) 210 Series AH 5 56 Series FH (73) 160 Series IH - - TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (2,256) 3,109

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.47) $ 1.55 Series F (0.84) 1.73 Series I (3.26) 1.85 Series AH 0.06 1.95 Series FH (1.01) 2.25 Series IH (0.29) 2.18

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

105 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund) STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (1,187) 1,541 (842) 1,142 (159) 210

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (255) (24) (220) (99) (16) (30) Distribution from net realized gains on portfolio investments (433) (439) (44) (290) - (74) Return of capital (714) - (260) - (2) - (1,402) (463) (524) (389) (18) (104)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 33,062 3,280 9,024 2,820 - - Reinvested distributions to holders of redeemable units 1,064 425 402 330 16 99 Net proceeds/(payments) from/for redeemable units transferred in/(out) (274) (435) 274 435 - - Payments for redeemable units redeemed (11,806) (1,673) (8,290) (1,547) (1,333) - 22,046 1,597 1,410 2,038 (1,317) 99

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 19,457 2,675 44 2,791 (1,494) 205

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 33,083 $ 13,626 $ 10,091 $ 10,047 $ $- 1,494

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,085,501 958,670 780,626 623,917 121,003 112,974 Redeemable units issued for cash 3,000,098 262,130 794,231 218,497 31 - Redeemable units issued for reinvested distributions 97,699 33,708 35,820 25,521 1,495 8,029 Net redeemable units transferred in/(out) (25,053) (34,858) 24,258 34,091 - - Redeemable units redeemed (1,080,543) (134,149) (730,986) (121,400) (122,498) - BALANCE, END OF YEAR 3,077,702 1,085,501 903,949 780,626 31 121,003

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 5 56 (73) 160 - -

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (18) - (25) (15) - - Distribution from net realized gains on portfolio investments (38) (15) (10) (10) - - Return of capital (6) - (11) - - - (62) (15) (46) (25) - -

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 1,104 61 1,897 140 - - Reinvested distributions to holders of redeemable units 50 14 35 21 1 - Net proceeds/(payments) from/for redeemable units transferred in/(out) - (24) - 24 - - Payments for redeemable units redeemed (433) (19) (2,220) (352) - - 721 32 (288) (167) 1 -

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 664 73 (407) (32) 1 -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 1,032 $ 368 $ 387 $ 794 $ 1 $ -

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 31,439 28,707 65,273 79,271 38 36 Redeemable units issued for cash 113,245 5,362 187,024 11,781 30 - Redeemable units issued for reinvested distributions 5,065 1,186 3,526 1,671 4 2 Net redeemable units transferred in/(out) - (2,103) - 2,069 - - Redeemable units redeemed (44,129) (1,713) (217,713) (29,519) - - BALANCE, END OF YEAR 105,620 31,439 38,110 65,273 72 38

106 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund) STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (CONTINUED)

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 26,329 $ 20,617

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (2,256) 3,109

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (534) (168) Distribution from net realized gains on portfolio investments (525) (828) Return of capital (993) - (2,052) (996)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 45,087 6,301 Reinvested distributions to holders of redeemable units 1,568 889 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (24,082) (3,591) 22,573 3,599

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 18,265 5,712

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 44,594 $ 26,329

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

107 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund) STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (2,256) $ 3,109

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 233 (1,335) Net change in unrealized (appreciation) depreciation of investments 2,598 (1,601) Net change in unrealized (appreciation) depreciation of foreign exchange contracts (21) (78) Purchase of investments (90,123) (25,938) Proceeds from sale of investments 74,335 24,088 (15,234) (1,755)

CHANGE IN NON-CASH WORKING CAPITAL (202) (2)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 39,472 6,308 Distributions to holders of redeemable units (484) (107) Amounts paid on redemption of redeemable units (24,087) (4,027) 14,901 2,174

NET INCREASE (DECREASE) IN CASH (535) 417

CASH—BEGINNING OF YEAR 715 298

CASH—END OF YEAR 180 715

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 1,105 526 Interest - 1 Non-cash purchases arising from fund mergers 5,566 - SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO FINANCING ACTIVITIES Non-cash proceeds from issuance of redeemable units arising from fund mergers 5,566 -

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

108 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund)

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Diversified Telecommunications Services 1,215 Lockheed Martin Corporation $ 648 $ 549 1.2 11,464 AT&T Inc. $ 493 $ 420 1.0 729 Northrop Grumman Corporation 339 283 0.6 2,591 BCE Inc. 150 141 0.3 1,417 Sturm Ruger & Company Inc. 117 118 0.3 33,089 Koninklijke (Royal) KPN NV 112 128 0.3 1,104 950 2.1 9,075 Orange SA 145 137 0.3 5,410 Proximus SA 151 136 0.3 Auto Components 991 Swisscom AG 683 679 1.5 3,000 Bridgestone Corp. 136 125 0.3 3,063 Telenet Group Holding NV 166 167 0.4 183 O'Reilly Automotive, Inc. 112 106 0.2 4,357 Telenor ASA 89 94 0.2 1,652 TELUS Corporation 37 42 0.1 248 231 0.5 8,351 Verizon Communications Inc. 632 625 1.4 Beverages 2,658 2,569 5.8 29,031 Orkla ASA 369 375 0.8 2,870 PepsiCo, Inc. 518 542 1.2 Electric Utilities 980 Ameren Corp. 96 97 0.2 887 917 2.0 21,100 Chubu Electric Power Co., Inc. 380 324 0.7 15,000 CLP Holdings Limited 192 177 0.4 Biotechnology 1,036 Consolidated Edison Inc. 112 95 0.2 3,688 Gilead Sciences, Inc. 378 273 0.6 10,700 Electric Power Development Co., Ltd. 254 188 0.4 229 IDEXX Laboratories, Inc. 116 146 0.3 1,539 Entergy Corporation 211 196 0.4 77 Mettler Toledo International 3,429 Evergy, Inc. 249 242 0.6 Incorporated 98 112 0.3 930 Eversource Energy 114 103 0.2 442 Vertex Pharmaceuticals Inc. 158 133 0.3 2,057 Exelon Corporation 108 111 0.3 750 664 1.5 2,073 Fortis Inc. 109 108 0.3 14,676 Iberdrola SA 248 268 0.6 Building Products 1,809 Portland General Electric Company 112 99 0.2 381 Lennox International Inc. 145 133 0.3 7,500 The Chugoku Electric Power Co. Inc. 121 112 0.3 18,300 The Kansai Electric Power Capital Markets Company, Incorporated 251 220 0.5 472 CME Group Inc. Cl. A 110 109 0.2 25,900 Tohoku Electric Power Co., Inc. 349 272 0.6 69,300 Daiwa Securities Group Inc. 407 402 0.9 2,906 2,612 5.9 4,907 Flow Traders 214 207 0.5 4,313 The Bank of New York Electronic Equipment, Instruments & Components Mellon Corporation 213 233 0.5 3,000 FUJIFILM Holdings Corporation 206 202 0.5 944 951 2.1 Equity Real Estate Investment Trusts (REITs) Chemicals 747 American Tower Corporation 224 214 0.5 5,715 Yara International ASA 297 302 0.7 518 Crown Castle International Corp. 113 105 0.2 9,784 Easterly Government Properties, Inc. 310 282 0.6 Commercial Banks 1,829 Extra Space Storage Inc. 263 270 0.6 39,600 Japan Post Bank Co., Ltd. 409 415 0.9 60 Industrial & Infrastructure Fund 14,810 Mizuho Financial Group, Inc. 262 239 0.5 Investment Corp. 132 141 0.3 24,100 Resona Holdings, Inc. 121 108 0.2 31 Japan Logistics Fund, Inc. 117 116 0.3 13,380 Standard Chartered PLC 110 108 0.2 60 LaSalle LOGIPORT REIT 127 123 0.3 22,900 The Hachijuni Bank, Ltd. 114 97 0.2 655 Mid-America Apartment Communities, 1,016 967 2.0 Inc. 112 106 0.2 777 Public Storage, Inc. 209 229 0.5 Commercial Services & Supplies 57,465 Waypoint REIT 136 154 0.4 6,000 Dai Nippon Printing Co., Ltd. 167 137 0.3 1,743 1,740 3.9 5,345 Republic Services, Inc. 630 656 1.5 1,341 Waste Management, Inc. 190 201 0.4 Food & Staples Retailing 987 994 2.2 6,827 Axfood AB Series B 202 203 0.5 7,341 Coles Group Limited 102 130 0.3 Communications Equipment 2,955 Empire Company Limited Cl. A 114 103 0.2 5,922 Cisco Systems, Inc. 366 338 0.7 86,575 J Sainsbury PLC 297 339 0.8 975 Motorola Solutions, Inc. 218 211 0.5 1,500 Jardine Matheson Holdings Limited 105 107 0.2 899 QUALCOMM Incorporated 98 174 0.4 12,999 Koninklijke Ahold Delhaize NV 444 467 1.1 682 723 1.6 4,100 Loblaw Companies Limited 264 257 0.6 6,000 Seven & I Holdings Co., Ltd. 278 270 0.6 5,593 The Kroger Co. 252 226 0.5 Construction & Engineering 2,809 Walmart Inc. 476 516 1.2 9,035 Kandenko Co., Ltd. 116 98 0.2 1,740 Weis Markets, Inc. 121 106 0.2 9,100 Obayashi Corporation 115 100 0.2 2,655 2,724 6.2 231 198 0.4 Food Products Containers & Packaging 6,000 Ajinomoto Co., Inc. 139 173 0.4 1,594 AptarGroup, Inc. 249 278 0.6 2,759 Campbell Soup Co. 185 170 0.4 4,557 Silgan Holdings Inc. 203 215 0.5 5,256 Flowers Foods, Inc. 167 151 0.3 452 493 1.1 4,525 General Mills, Inc. 378 339 0.8 1,143 George Weston Limited 114 109 0.2 Diversified Consumer Services 4,996 Hormel Foods Corporation 321 297 0.7 4,145 Service Corporation International 266 259 0.6 4,996 Kellogg Co. 439 396 0.9 1,503 The Hershey Company 274 292 0.6 Diversified Financial Services 1,523 Viscofan, SA 136 137 0.3 4,600 Orix Corporation 74 90 0.2 2,153 2,064 4.6 4,328 Plus500 Ltd. 113 109 0.3 61,000 Singapore Exchange Limited 526 546 1.2 Gas Utilities 3,226 Virtu Financial, Inc. Cl. A 99 103 0.2 823 Atmos Energy Corporation 108 100 0.2 812 848 1.9 3,337 National Fuel Gas Company 191 175 0.4 7,500 Osaka Gas Co., Ltd. 203 196 0.4 1,478 Southwest Gas Holdings, Inc. 123 114 0.3 625 585 1.3

109 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund)

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Health Care Equipment & Supplies Metals & Mining 1,661 Coloplast A/S Series B $ 366 $ 323 0.7 5,136 BHP Group PLC $ 137 $ 173 0.4 422 Danaher Corporation 116 119 0.3 9,874 Fortescue Metals Group Limited 119 227 0.5 7,696 Fisher & Paykel Healthcare 2,758 Newmont Corporation 231 210 0.5 Corporation Limited 206 233 0.5 1,191 Rio Tinto Limited 113 133 0.3 688 675 1.5 600 743 1.7

Health Care Providers & Services Mortgage Real Estate Investment Trusts (REITs) 1,492 Cardinal Health, Inc. 105 102 0.2 1,448 Equity Lifestyle Properties, Inc. 111 117 0.3 3,325 CVS Health Corporation 290 289 0.6 795 DaVita Inc. 85 119 0.3 Multiline Retail 552 McKesson Corporation 116 122 0.3 290 Costco Wholesale Corporation 117 139 0.3 1,067 Quest Diagnostics Incorporated 171 162 0.4 1,716 Dollar General Corp. 440 460 1.0 339 UnitedHealth Group Incorporated 139 151 0.3 1,610 Target Corporation 259 362 0.8 906 945 2.1 816 961 2.1

Hotels, Restaurants & Leisure Multi-Utilities 518 Domino's Pizza, Inc. 273 253 0.6 25,130 AGL Energy Limited 385 295 0.7 1,048 McDonald's Corporation 311 286 0.7 1,343 CMS Energy Corp. 114 104 0.2 3,000 McDonald's Holdings Company (Japan), 3,642 MDU Resources Group, Inc. 115 122 0.3 Ltd. 235 185 0.4 25,435 National Grid PLC 400 383 0.9 3,100 Sankyo Company, Limited 101 107 0.2 1,143 Sempra Energy 190 185 0.4 920 831 1.9 867 WEC Energy Group, Inc. 113 102 0.2 2,179 Xcel Energy Inc. 185 185 0.4 Household Durables 1,502 1,376 3.1 16,800 DCM Holdings Co., Ltd. 282 245 0.5 Oil, Gas & Consumable Fuels Household Products 4,541 Royal Dutch Shell PLC Cl. A 110 101 0.2 2,475 Clorox Company 686 637 1.5 4,586 Colgate-Palmolive Company 456 499 1.1 Pharmaceuticals 3,371 Kimberly-Clark Corporation 659 579 1.3 2,642 AbbVie Inc. 332 361 0.8 4,297 The Procter & Gamble Company 674 761 1.7 1,509 AmerisourceBergen Corporation 194 188 0.4 2,475 2,476 5.6 4,054 Bristol-Myers Squibb Company 345 320 0.7 1,716 Eli Lilly and Company 347 369 0.8 Independent Power And Renewable Electricity Producers 3,568 Johnson & Johnson 721 715 1.6 724 DTE Energy Company 112 112 0.3 5,618 Merck & Co., Inc. 599 585 1.3 4,938 Novartis AG 587 592 1.4 Industrial Conglomerates 6,583 Novo Nordisk A/S Cl. B 588 585 1.3 421 3M Company 89 94 0.2 11,449 Pﬁzer Inc. 596 537 1.2 198 W.W. Grainger, Inc. 105 103 0.2 1,191 Roche Holding AG 577 528 1.2 3,947 Viatris Inc. 85 94 0.2 194 197 0.4 518 Zoetis Inc. Cl. A 113 109 0.3 Insurance 5,084 4,983 11.2 2,697 CNA Financial Corporation 125 134 0.3 945 Hanover Insurance Group Inc. 140 141 0.3 Real Estate Management & Development 9,000 MS&AD Insurance Group Holdings, Inc. 336 348 0.8 1,500 Daito Trust Construction Co., Ltd. 203 179 0.4 2,057 NN Group NV 110 113 0.3 30,000 Hysan Development Company, Limited 118 140 0.3 7,361 Old Republic International Corporation 176 185 0.4 22,500 Sun Hung Kai Properties Limited 371 366 0.8 1,524 The Progressive Corporation 159 192 0.4 692 685 1.5 3,000 Tokio Marine Holdings, Inc. 178 197 0.4 1,224 1,310 2.9 Software 1,372 Cadence Design Systems Inc. 165 238 0.6 IT Services 533 Electronic Arts Inc. 89 98 0.2 518 Accenture PLC Cl. A 141 172 0.4 838 Microsoft Corporation 215 237 0.5 2,764 Booz Allen Hamilton Holding Corp. Cl. A 292 307 0.7 290 Synopsys Inc. 78 96 0.2 701 Broadridge Financial Solutions Inc. 136 137 0.3 3,000 Trend Micro Incorporated 241 220 0.5 991 ExlService Holdings, Inc. 107 107 0.2 788 889 2.0 1,219 Jack Henry & Associates, Inc. 303 252 0.6 4,968 Western Union Company 143 139 0.3 Specialty Retail 1,122 1,114 2.5 784 Best Buy Co., Inc. 85 99 0.2 7,600 K's Holdings Corporation 126 135 0.3 Machinery 594 The Home Depot, Inc. 225 201 0.5 407 Cummins Inc. 93 118 0.2 503 Tractor Supply Company 90 90 0.2 1,360 Graco Inc. 118 125 0.3 526 525 1.2 7,432 Husqvarna AB Series B 112 123 0.3 2,377 PACCAR Inc. 272 261 0.6 Technology Hardware, Storage & Peripherals 3,216 Valmet OYJ 110 118 0.3 739 Apple Inc. 81 125 0.3 705 745 1.7 Tobacco Media 4,221 Altria Group, Inc. 229 220 0.5 213 Charter Communications, Inc. Cl. A 176 179 0.4 4,938 Imperial Brands PLC 127 132 0.3 935 Cogeco Communications Inc. 93 92 0.2 1,112 Philip Morris International Inc. 119 117 0.3 5,117 Comcast Corporation Cl. A 281 341 0.8 475 469 1.1 3,200 Fuji Media Holdings, Inc. 43 44 0.1 1,311 Omnicom Group Inc. 109 104 0.2 Trading Companies & Distributors 10,538 Quebecor Inc. Cl. B 335 345 0.8 7,600 Itochu Corporation 261 278 0.6 7,330 Shaw Communications Inc. Cl. B 171 164 0.4 6,100 Mitsubishi Corporation 178 192 0.4 3,581 The Interpublic Group of 3,100 MITSUI & Co., Ltd. 64 72 0.2 Companies, Inc. 110 107 0.2 503 542 1.2 1,318 1,376 3.1

110 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund)

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS Transportation Infrastructure 1,500 East Japan Railway Company $ 160 $ 127 0.3

Water Utilities 1,707 California Water Service Group 110 117 0.3

Wireless Telecommunications Services 12,100 KDDI Corporation 466 457 1.0 6,970 Rogers Communications Inc. Cl. B 422 413 0.9 142,001 Vodafone Group PLC 274 297 0.7 1,162 1,167 2.6

Total Investments 44,433 44,079 98.8 Foreign Exchange Contracts (a) 40 0.1 Other Assets Less Liabilities 475 1.1 Net Assets Attributable to Holders of Redeemable Units 44,594 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 2 EUR 1 1.55878 $ - Jan 4, 2021 CAD 6 GBP 4 1.74044 - Jan 4, 2021 CAD 5 USD 4 1.27483 - Jan 15, 2021 AUD 44 CAD 42 1.02785 to 1.06396 1 Jan 15, 2021 CAD 71 AUD 75 0.94950 to 0.95624 (2) Jan 15, 2021 CAD 68 CHF 47 1.43630 to 1.45383 - Jan 15, 2021 CAD 43 DKK 205 0.20720 to 0.21069 - Jan 15, 2021 CAD 81 EUR 52 1.53982 to 1.56720 - Jan 15, 2021 CAD 82 GBP 48 1.70093 to 1.74121 (1) Jan 15, 2021 CAD 35 HKD 203 0.16810 to 0.17101 1 Jan 15, 2021 CAD 391 JPY 31,133 0.01237 to 0.01257 7 Jan 15, 2021 CAD 40 NOK 276 0.14344 to 0.14491 (1) Jan 15, 2021 CAD 12 NZD 13 0.86667 to 0.92593 - Jan 15, 2021 CAD 13 SEK 88 0.14904 to 0.15426 - Jan 15, 2021 CAD 21 SGD 22 0.95877 to 0.97547 - Jan 15, 2021 CAD 1,129 USD 853 1.27495 to 1.32591 44 Jan 15, 2021 CHF 9 CAD 13 0.68158 to 0.69774 - Jan 15, 2021 DKK 67 CAD 14 4.77801 to 4.83207 - Jan 15, 2021 EUR 14 CAD 21 0.63735 to 0.64793 - Jan 15, 2021 GBP 17 CAD 29 0.57431 to 0.58751 - Jan 15, 2021 HKD 72 CAD 12 5.87429 to 6.06770 - Jan 15, 2021 JPY 13,933 CAD 173 79.41252 to 81.47651 (2) Jan 15, 2021 NOK 111 CAD 16 6.80513 to 7.17529 1 Jan 15, 2021 NZD 5 CAD 5 1.08696 to 1.15083 - Jan 15, 2021 SEK 22 CAD 3 6.43791 to 6.71257 - Jan 15, 2021 SGD 4 CAD 4 1.02443 to 1.04512 - Jan 15, 2021 USD 217 CAD 285 0.74859 to 0.78356 (8) $ 40 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; —State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

111 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund)

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Portfolio by Country Exposure Essentially all of the assets and liabilities of the Fund are financial instruments. DEC. 31 DEC. 31 These financial instruments comprise the following: 2020 (%) 2019 (%) Equities Portfolio by Industry Exposure Australia 2.3 4.6 DEC. 31 DEC. 31 Belgium 0.7 0.4 2020 (%) 2019 (%) Canada 4.0 8.6 China - 0.2 Equities Denmark 2.0 0.7 Aerospace & Defense 2.1 2.6 Finland 0.3 - Airlines - 1.6 France 0.3 1.0 Auto Components 0.5 0.7 Germany - 1.3 Beverages 2.0 2.1 Hong Kong 1.5 - Biotechnology 1.5 0.5 Ireland 0.4 - Building Products 0.3 - Israel 0.3 1.2 Capital Markets 2.1 1.0 Italy - 1.3 Chemicals 0.7 0.3 Japan 15.3 13.5 Commercial Banks 2.0 3.9 Netherlands 2.4 1.4 Commercial Services & Supplies 2.2 3.4 New Zealand 0.5 - Communications Equipment 1.6 0.9 Norway 1.7 1.0 Construction & Engineering 0.4 0.3 Puerto Rico - 0.3 Construction Materials - 0.2 Singapore 1.4 0.5 Consumer Finance - 0.2 Spain 0.9 1.5 Containers & Packaging 1.1 0.5 Sweden 0.8 0.8 Distributors - 0.3 Switzerland 4.1 4.4 Diversified Consumer Services 0.6 0.2 United Kingdom 3.2 3.0 Diversified Financial Services 1.9 1.8 United States 56.7 51.4 Diversified Telecommunications Services 5.8 2.6 Electric Utilities 5.9 2.9 Total investments 98.8 97.1 Electrical Equipment - 0.3 Foreign exchange contracts, net 0.1 0.1 Electronic Equipment, Instruments & Components 0.5 1.1 Total financial instruments at fair value 98.9 97.2 Entertainment - 0.2 Total other assets less liabilities at cost or amortized cost 1.1 2.8 Equity Real Estate Investment Trusts (REITs) 3.9 5.3 Food & Staples Retailing 6.2 4.1 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Food Products 4.6 2.7 Gas Utilities 1.3 0.6 Health Care Equipment & Supplies 1.5 0.9 Health Care Providers & Services 2.1 3.1 FAIR VALUE MEASUREMENTS Hotels, Restaurants & Leisure 1.9 2.3 Below is a summary of the inputs used as at December 31, 2020 and December Household Durables 0.5 1.1 31, 2019 in valuing the Fund’s investments carried at fair values. Household Products 5.6 2.5 Independent Power And Renewable Electricity Producers 0.3 0.7 DECEMBER 31, 2020 Industrial Conglomerates 0.4 1.1 QUOTED PRICES SIGNIFICANT Insurance 2.9 6.6 IN ACTIVE OTHER SIGNIFICANT Internet Software & Services - 0.3 MARKETS FOR OBSERVABLE UNOBSERVABLE IT Services 2.5 1.0 IDENTICAL INPUTS INPUTS Leisure Products - 0.3 ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Machinery 1.7 0.4 ($000) ($000) ($000) ($000) Media 3.1 1.8 Equities 27,826 16,253 - 44,079 Metals & Mining 1.7 3.7 Total Investments 27,826 16,253 - 44,079 Mortgage Real Estate Investment Trusts (REITs) 0.3 - Multiline Retail 2.1 1.9 Foreign Exchange Multi-Utilities 3.1 2.7 Contracts, Net - 40 - 40 Oil, Gas & Consumable Fuels 0.2 1.7 Personal Products - 0.7 Pharmaceuticals 11.2 9.8 DECEMBER 31, 2019 Real Estate Management & Development 1.5 1.1 QUOTED PRICES SIGNIFICANT Road & Rail - 0.8 IN ACTIVE OTHER SIGNIFICANT Semiconductors & Semiconductor Equipment - 1.2 MARKETS FOR OBSERVABLE UNOBSERVABLE Software 2.0 1.9 IDENTICAL INPUTS INPUTS Specialty Retail 1.2 4.0 ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Technology Hardware, Storage & Peripherals 0.3 - ($000) ($000) ($000) ($000) Textiles, Apparel & Luxury Goods - 1.9 Equities 16,345 9,211 - 25,556 Thrifts & Mortgage Finance - 0.2 Tobacco 1.1 0.3 Total Investments 16,345 9,211 - 25,556 Trading Companies & Distributors 1.2 - Foreign Exchange Transportation Infrastructure 0.3 1.1 Contracts, Net - 19 - 19 Water Utilities 0.3 0.4 Wireless Telecommunications Services 2.6 1.3 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Total investments 98.8 97.1 service provider to provide fair value adjustments, where applicable, to the prices Foreign exchange contracts, net 0.1 0.1 of foreign securities due to changes in the value of securities in North American Total financial instruments at fair value 98.9 97.2 markets following the closure of the foreign markets. The parameters used to Total other assets less liabilities at cost or amortized cost 1.1 2.8 apply the fair value adjustments are based on observable market data, and as Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 such, the foreign securities are considered Level 2 priced securities.

During the year ended December 31, 2020, $0.2 million were transferred from Level 1 to Level 2 and $0.4 million were transferred from Level 2 to Level 1. During the year ended December 31, 2019, $0.1 million were transferred from Level 2 to Level 1.

112 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund)

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

FINANCIAL INSTRUMENTS RISKS The following table summarizes the foreign currency risk associated with the The investment objective of the Lazard Defensive Global Dividend Fund (formerly hedged series which is offset by Forward Foreign Currency Contracts. Lazard Global Managed Volatility Fund) were to achieve long-term capital appreciation by investing primarily in the equity securities of issuers based around DECEMBER 31, 2020 the globe. Effective February 28, 2020, the investment strategies of the Fund Forward Foreign were modified to factor in a company’s ability to pay sustainable and attractive Currency levels of dividends. Contracts outstanding OTHER NET in Hedged INVESTMENTS CASH ASSETS Series TOTAL Market Price Risk CURRENCY ($000) ($000) ($000) ($000) ($000) As at December 31, 2020, If the Fund's benchmark (MSCI World Index and MSCI Australian Dollar 30 - - (30) - World Index (Hedged)) for these securities had increased or decreased by 10%, Danish Krone 29 - - (29) - with all other variables held constant, the net assets of the Fund would have Euro 60 - 3 (59) 4 increased or decreased, respectively, by approximately $4.4 million (December Hong Kong Dollar 22 - - (22) - 31, 2019—$2.6 million) or 9.9% (December 31, 2019—9.7%)of total net assets. Japanese Yen 221 - - (212) 9 This impact is estimated based on the historical correlation between the return of New Zealand Dollar 7 - - (7) - Series I units of the Fund as compared to the return of the Fund’s benchmark. In Norwegian Krone 25 - - (25) - practice, the historical correlation may not be representative of the future Pound Sterling 52 - - (54) (2) correlation and, accordingly, the impact on net assets could be Singapore Dollar 17 - - (17) - Swedish Krona 10 - - (10) - materially different. Swiss Franc 57 - 2 (55) 4 U.S. Dollar 816 - 1 (809) 8 Foreign Currency Risk Total 1,346 - 6 (1,329) 23 The tables below indicate the currencies to which the unhedged series of the % of Net Assets 3.0 - - (3.0) - Fund had significant exposure on its financial instruments as at December 31, 2020 and December 31, 2019 in Canadian dollar terms. DECEMBER 31, 2019 DECEMBER 31, 2020 Forward INVESTMENTS CASH OTHER NET TOTAL Foreign CURRENCY ($000) ($000) ASSETS ($000) ($000) Currency Contracts Australian Dollar 910 1 2 913 outstanding Danish Krone 879 - 5 884 OTHER NET in Hedged Euro 1,819 2 95 1,916 INVESTMENTS CASH ASSETS Series TOTAL Hong Kong Dollar 661 - - 661 CURRENCY ($000) ($000) ($000) ($000) ($000) Japanese Yen 6,714 - 3 6,717 Australian Dollar 62 - - (61) 1 New Zealand Dollar 225 - - 225 Danish Krone 8 - - (8) - Norwegian Krone 746 - 8 754 Euro 76 - - (75) 1 Pound Sterling 1,589 6 8 1,603 Israeli Shekel 10 - - (10) - Singapore Dollar 528 - - 528 Japanese Yen 155 - - (155) - Swedish Krona 315 - - 315 Norwegian Krone 11 - - (11) - Swiss Franc 1,742 - 49 1,791 Pound Sterling 34 - - (34) - U.S. Dollar 24,832 11 45 24,888 Singapore Dollar 3 - - (3) - Total 40,960 20 215 41,195 Swedish Krona 8 - - (8) - % of Net Assets 91.9 - 0.5 92.4 Swiss Franc 53 - - (51) 2 U.S. Dollar 607 - 1 (581) 27 Total 1,027 - 1 (997) 31 DECEMBER 31, 2019 % of Net Assets 3.9 - - (3.8) 0.1 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) As at December 31, 2020, if the Canadian dollar had strengthened or weakened Australian Dollar 1,335 - - 1,335 by 2% in relation to all foreign currencies, with all other variables held constant, Danish Krone 178 - - 178 the Fund’s net assets would have decreased or increased, respectively, by Euro 1,651 - 9 1,660 approximately $0.8 million (December 31, 2019—$0.4 million), or 1.8% Israeli Shekel 224 - - 224 Japanese Yen 3,359 - 3 3,362 (December 31, 2019—1.5%) of total net assets. The Fund consists of both Norwegian Krone 247 - - 247 Unhedged and Hedged Series. Exposure to currency impact would only affect the Pound Sterling 743 - 2 745 Unhedged Series. Approximately 96.8% (December 31, 2019—95.6%) of the Singapore Dollar 72 - - 72 Fund is invested in the Unhedged Series of units which has not been hedged with Swedish Krona 181 - - 181 forward exchange contracts. The remaining 3.2% (December 31, 2019—4.4%) Swiss Franc 1,145 (2) 8 1,151 of the Fund is invested in the Hedged Series of units which has been hedged with U.S. Dollar 13,137 1 15 13,153 forward exchange contracts and therefore is not subject to significant currency Total 22,272 (1) 37 22,308 risk. In practice, the actual results may differ from this sensitivity analysis and the % of Net Assets 84.6 - 0.1 84.7 difference could be material.

The notes at the back of this document are an integral part of these ﬁnancial statements. 113 LAZARD DEFENSIVE GLOBAL DIVIDEND FUND (formerly Lazard Global Managed Volatility Fund)

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

For the hedged series, the Fund uses forward contracts to hedge the foreign The number of units issued and the fair value of assets acquired by the currency exposure on that portion of the Fund associated with the Hedged Series Continuing Fund as at May 22, 2020 were as follows: of units. All of these contracts are with an approved counterparty. Series Units of Discontinuing Fund Fair Value of Net SECURITIES LENDING Number of Units Assets Acquired by Series Units of Series Units of Issued by the the Continuing Fund The aggregate market value of all securities loaned by a fund cannot exceed 50% Discontinuing Fund Continuing Fund Continuing Fund ($000) of the net assets of the applicable Fund. The Funds receive collateral of at least 102% of the value of the securities on loan. Collateral may comprise of obligations Series A Series A 2,927,729 32,227 of or guaranteed by the Government of Canada, or a province thereof, or by the Series F Series F 730,944 8,290 Series I Series I 31 - United States government or its agencies. Series AH Series AH 85,309 823 Series FH Series FH 152,190 1,534 As at December 31, 2020 and 2019 the fair value of securities on loan and Series IH Series IH 29 - collateral received was $Nil. The ﬁnancial statements of the Continuing Fund do not include the operating results of the Discontinuing Fund prior to the merger date of May 22, 2020. OFFSETTING OF FINANCIAL INSTRUMENTS The fund enters into various master netting agreements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. The following table presents ﬁnancial instruments that are offset, or subject to enforceable master netting agreements or other similar agreements but that are not offset, as at December 31, 2020 and December 31, 2019. The ‘Net’ column shows what the impact on the Fund’s Statements of Financial Position would be if all set-off rights were exercised.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 56 (16) - 40 Payable for open foreign currency spot or exchange contracts (16) 16 - -

DECEMBER 31, 2019 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 23 (4) - 19 Payable for open foreign currency spot or exchange contracts (4) 4 - -

SIGNIFICANT EVENTS On May 22, 2020, the Lazard Global Equity Income Fund (the “Discontinued Fund”) merged with the Fund (the “Continuing Fund”). Pursuant to this transaction, the Continuing Fund acquired all of the net assets of the Discontinued Fund at fair value in exchange for units in the equivalent series of the Continuing Fund. The value of the units issued in connection with this merger was equal to the market value of the net assets transferred from the Discontinued Fund as at May 22, 2020. This merger was effected on a taxable deferred basis. The Discontinued Fund was terminated and wound-up after the merger was completed.

114 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD GLOBAL BALANCED INCOME FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 27,328 $ 25,307 Cash 387 500 Receivable for redeemable unit subscriptions 5 - Receivable from securities sold 69 28 Dividends and accrued interest receivable 147 119 Receivable for open foreign currency spot or forward contracts 311 85 28,247 26,039

LIABILITIES CURRENT LIABILITIES Payable for securities purchased - 23 Payable for redeemable unit redemptions 1 2 Payable for open foreign currency spot or forward contracts 277 61 278 86

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 27,969 $ 25,953 Cost of investments 26,399 24,175

Net assets attributable to holders of redeemable units, Series A $ 17,591 $ 14,268 Number of redeemable units outstanding, Series A 1,762 1,399 Net assets attributable to holders of redeemable units per unit, Series A 9.99 10.20 Net assets attributable to holders of redeemable units per unit, Series A (USD) 7.84 7.86

Net assets attributable to holders of redeemable units, Series F $ 10,378 $ 6,327 Number of redeemable units outstanding, Series F 994 601 Net assets attributable to holders of redeemable units per unit, Series F 10.44 10.53 Net assets attributable to holders of redeemable units per unit, Series F (USD) 8.20 8.11

Net assets attributable to holders of redeemable units, Series I $ - $ 5,358 Number of redeemable units outstanding, Series I - 503 Net assets attributable to holders of redeemable units per unit, Series I 10.65 10.66

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

115 LAZARD GLOBAL BALANCED INCOME FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 334 $ 435 Interest for distribution purposes 351 281 Income distributions received from underlying funds - 93 Management Fee Rebates income 25 22 Net realized gain (loss) on sale of investments 699 981 Net change in unrealized appreciation (depreciation) of investments (203) 1,061 Net gain (loss) on investments 1,206 2,873

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 111 66 Net change in unrealized appreciation (depreciation) of foreign exchange contracts 11 97 Net gain (loss) on derivatives 122 163

Other income 31 - Net realized gain (loss) on foreign currencies (173) - Net change in unrealized appreciation (depreciation) of foreign currencies (1) (4) Total net income (loss) 1,185 3,032

EXPENSES (note 6) Management fees 379 332 Audit 4 2 Interest expense 1 - Independent review committee 2 1 Custody and fund accounting 30 26 Filing fees 18 16 Unitholder reporting 5 1 Administration and transfer agent fees 77 33 Foreign withholding taxes 44 51 Transaction costs (note 3) 18 13 578 475 Expenses absorbed (67) (24) Total expenses net of absorption 511 451

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 417 $ 1,319 Series F 358 647 Series I (101) 615 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 674 2,581

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.26 $ 0.98 Series F 0.43 1.14 Series I (0.50) 1.26

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

116 LAZARD GLOBAL BALANCED INCOME FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 417 1,319 358 647 (101) 615

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (77) (514) (143) (319) (69) (378) Distribution from net realized gains on portfolio investments (163) - (41) - (15) - Return of capital (408) (30) (154) - - - (648) (544) (338) (319) (84) (378)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 7,907 3,874 6,452 787 1,260 - Reinvested distributions to holders of redeemable units 594 462 239 185 73 331 Net proceeds/(payments) from/for redeemable units transferred in/(out) (967) (108) 967 108 - - Payments for redeemable units redeemed (3,980) (4,043) (3,627) (1,225) (6,506) (205) 3,554 185 4,031 (145) (5,173) 126

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 3,323 960 4,051 183 (5,358) 363

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 17,591 $ 14,268 $ 10,378 $ 6,327 $ $- 5,358

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,398,565 1,379,203 600,866 616,654 502,786 491,118 Redeemable units issued for cash 800,631 385,271 632,449 74,720 121,491 - Redeemable units issued for reinvested distributions 60,112 45,977 23,237 17,708 7,038 30,904 Net redeemable units transferred in/(out) (97,666) (10,679) 93,966 10,307 - - Redeemable units redeemed (400,019) (401,207) (356,357) (118,523) (631,284) (19,236) BALANCE, END OF YEAR 1,761,623 1,398,565 994,161 600,866 31 502,786

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 25,953 $ 24,447

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 674 2,581

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (289) (1,211) Distribution from net realized gains on portfolio investments (219) - Return of capital (562) (30) (1,070) (1,241)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 15,619 4,661 Reinvested distributions to holders of redeemable units 906 978 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (14,113) (5,473) 2,412 166

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 2,016 1,506

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 27,969 $ 25,953

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

117 LAZARD GLOBAL BALANCED INCOME FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 674 $ 2,581

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (699) (981) Unrealized (appreciation) depreciation on foreign cash 1 - Net change in unrealized (appreciation) depreciation of investments 203 (1,061) Net change in unrealized (appreciation) depreciation of foreign exchange contracts (11) (97) Reinvested distributions from underlying funds - (93) Purchase of investments (37,505) (21,222) Proceeds from sale of investments 35,918 22,036 Amortization income (1) (4) (1,420) 1,159

CHANGE IN NON-CASH WORKING CAPITAL (28) 83

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 15,614 4,673 Distributions to holders of redeemable units (164) (263) Amounts paid on redemption of redeemable units (14,114) (5,483) 1,336 (1,073) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH (1) -

NET INCREASE (DECREASE) IN CASH (113) 169

CASH—BEGINNING OF YEAR 500 331

CASH—END OF YEAR 387 500

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 281 472 Interest 332 276

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

118 LAZARD GLOBAL BALANCED INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS EQUITIES Communications Equipment Aerospace & Defense 3,264 Cisco Systems, Inc. $ 186 $ 186 0.7 361 Lockheed Martin Corporation $ 184 $ 163 0.6 64 Motorola Solutions, Inc. 15 14 0.1 74 Northrop Grumman Corporation 33 29 0.1 632 QUALCOMM Incorporated 84 123 0.4 910 Raytheon Technologies Corp. 77 83 0.3 285 323 1.2 94 Sturm Ruger & Company Inc. 8 8 - 302 283 1.0 Construction & Engineering 600 Kandenko Co., Ltd. 7 7 - Air Freight & Logistics 2,100 Obayashi Corporation 27 23 0.1 791 United Parcel Service, Inc. Cl. B 170 170 0.6 34 30 0.1 1,800 Yamato Holdings Co., Ltd. 58 58 0.2 228 228 0.8 Consumer Finance 420 American Express Company 58 65 0.2 Auto Components 2,200 Bridgestone Corp. 97 92 0.3 Containers & Packaging 323 Continental AG 47 61 0.2 101 AptarGroup, Inc. 16 18 0.1 1,113 Magna International Inc. 76 100 0.4 299 Silgan Holdings Inc. 13 14 0.1 12 O'Reilly Automotive, Inc. 8 7 - 29 32 0.2 228 260 0.9 Diversified Consumer Services Automobiles 377 Evolution Gaming Group AB 34 48 0.2 162 Tesla, Inc. 121 146 0.5 272 Service Corporation International 18 17 - 52 65 0.2 Beverages 1,905 Orkla ASA 24 25 0.1 Diversified Financial Services 884 PepsiCo, Inc. 159 167 0.6 2,460 Bank of America Corporation 83 95 0.4 807 The Coca-Cola Company 51 56 0.2 472 JPMorgan Chase & Co. 61 76 0.3 234 248 0.9 834 MetLife, Inc. 40 50 0.2 153 Moodys Corporation 55 57 0.2 Biotechnology 1,700 Orix Corporation 30 33 0.1 242 Gilead Sciences, Inc. 25 18 0.1 283 Plus500 Ltd. 7 7 - 204 IDEXX Laboratories, Inc. 110 130 0.5 4,000 Singapore Exchange Limited 34 36 0.1 17 Mettler Toledo International 214 Virtu Financial, Inc. Cl. A 7 7 - Incorporated 24 24 0.1 317 361 1.3 175 Seagen, Inc. 39 39 0.1 29 Vertex Pharmaceuticals Inc. 10 9 - Diversified Telecommunications Services 208 220 0.8 732 AT&T Inc. 30 27 0.1 170 BCE Inc. 10 9 - Building Products 2,195 Koninklijke (Royal) KPN NV 7 8 - 354 Compagnie de Saint-Gobain 19 21 0.1 602 Orange SA 10 9 - 25 Lennox International Inc. 10 8 - 355 Proximus SA 10 9 - 29 29 0.1 64 Swisscom AG 44 44 0.2 201 Telenet Group Holding NV 11 11 0.1 Capital Markets 289 Telenor ASA 6 6 - 1,805 3i Group PLC 28 36 0.1 85 TELUS Corporation 2 2 - 31 CME Group Inc. Cl. A 7 7 - 1,626 Verizon Communications Inc. 122 122 0.5 4,400 Daiwa Securities Group Inc. 26 26 0.1 252 247 0.9 322 Flow Traders 14 14 0.1 220 S&P Global, Inc. 101 92 0.3 Electric Utilities 283 The Bank of New York 65 Ameren Corp. 6 6 - Mellon Corporation 14 15 0.1 1,300 Chubu Electric Power Co., Inc. 23 20 0.1 190 190 0.7 1,000 CLP Holdings Limited 13 12 - 68 Consolidated Edison Inc. 7 6 - Chemicals 700 Electric Power Development Co., Ltd. 16 12 - 369 Akzo Nobel NV 51 50 0.2 101 Entergy Corporation 14 13 0.1 140 Avery Dennison Corporation 21 28 0.1 225 Evergy, Inc. 16 16 0.1 700 Nitto Denko Corp. 65 80 0.3 61 Eversource Energy 8 7 - 157 RPM International, Inc. 17 18 0.1 135 Exelon Corporation 7 7 - 1,382 Yara International ASA 73 73 0.3 136 Fortis Inc. 7 7 - 2,630 Iberdrola SA 45 48 0.2 227 249 1.0 120 Portland General Electric Company 7 7 - 500 The Chugoku Electric Power Co. Inc. 8 8 - Commercial Banks 1,200 The Kansai Electric Power 12,617 Banca Farmafactoring SPA 96 97 0.4 Company, Incorporated 17 14 0.1 1,490 Citizens Financial Group, Inc. 46 68 0.2 1,700 Tohoku Electric Power Co., Inc. 23 18 0.1 1,738 Fifth Third Bancorp 54 61 0.2 2,600 Japan Post Bank Co., Ltd. 27 27 0.1 217 201 0.7 970 Mizuho Financial Group, Inc. 17 16 0.1 1,600 Resona Holdings, Inc. 8 7 - Electrical Equipment 878 Standard Chartered PLC 6 7 - 2,256 ABB, Ltd. 61 81 0.3 1,500 The Hachijuni Bank, Ltd. 7 6 - 93 Generac Holdings, Inc. 26 27 0.1 274 Schneider Electric SE 44 50 0.2 261 289 1.0 131 158 0.6 Commercial Services & Supplies 400 Dai Nippon Printing Co., Ltd. 11 9 - Electronic Equipment, Instruments & Components 344 Republic Services, Inc. 41 42 0.2 200 FUJIFILM Holdings Corporation 13 14 0.1 88 Waste Management, Inc. 12 14 0.1 600 Hitachi, Ltd. 27 30 0.1 64 65 0.3 40 44 0.2

Entertainment 572 Nintendo Co., Ltd. ADR 41 59 0.2

119 LAZARD GLOBAL BALANCED INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS EQUITIES (continued) Hotels, Restaurants & Leisure Equity Real Estate Investment Trusts (REITs) 34 Domino's Pizza, Inc. $ 18 $ 17 0.1 49 American Tower Corporation $ 15 $ 14 0.1 66 McDonald's Corporation 20 18 0.1 1,293 Brixmor Property Group Inc. 20 27 0.1 200 McDonald's Holdings Company (Japan), 34 Crown Castle International Corp. 7 7 - Ltd. 16 12 - 642 Easterly Government Properties, Inc. 20 19 0.1 6,400 Sands China, Ltd. 35 35 0.1 120 Extra Space Storage Inc. 17 18 0.1 200 Sankyo Company, Limited 6 7 - 1,928 Gaming and Leisure Properties, Inc. 93 104 0.4 527 Starbucks Corporation 62 72 0.3 4,188 Goodman Group 75 78 0.3 157 161 0.6 4 Industrial & Infrastructure Fund Investment Corp. 9 9 - Household Durables 2 Japan Logistics Fund, Inc. 8 8 - 181 D.R. Horton, Inc. 17 16 - 4 LaSalle LOGIPORT REIT 8 8 - 1,100 DCM Holdings Co., Ltd. 19 16 0.1 43 Mid-America Apartment Communities, 489 Leggett & Platt, Incorporated 23 27 0.1 Inc. 7 7 - 3,300 Sekisui House, Ltd. 82 86 0.3 894 PotlatchDeltic Corporation 43 57 0.2 141 145 0.5 51 Public Storage, Inc. 14 15 0.1 3,812 Waypoint REIT 9 10 - Household Products 345 381 1.4 159 Clorox Company 44 41 0.1 294 Colgate-Palmolive Company 29 32 0.1 Food & Staples Retailing 500 Kao Corporation 51 49 0.2 448 Axfood AB Series B 13 13 - 695 Kimberly-Clark Corporation 134 119 0.4 487 Coles Group Limited 7 9 - 894 The Procter & Gamble Company 150 159 0.6 194 Empire Company Limited Cl. A 7 7 - 408 400 1.4 5,681 J Sainsbury PLC 20 22 0.1 100 Jardine Matheson Holdings Limited 7 7 - Independent Power And Renewable Electricity Producers 3,721 Koninklijke Ahold Delhaize NV 136 134 0.5 48 DTE Energy Company 7 7 - 270 Loblaw Companies Limited 17 17 0.1 1,800 Seven & I Holdings Co., Ltd. 77 81 0.3 Industrial Conglomerates 367 The Kroger Co. 17 15 0.1 27 3M Company 6 6 - 714 Walmart Inc. 132 131 0.5 106 W.W. Grainger, Inc. 51 55 0.2 113 Weis Markets, Inc. 8 7 - 57 61 0.2 441 443 1.6 Insurance Food Products 171 Allianz SE 45 53 0.2 400 Ajinomoto Co., Inc. 9 12 0.1 177 CNA Financial Corporation 8 9 - 171 Campbell Soup Co. 11 11 - 1,652 Gjensidige Forsikring ASA 43 47 0.2 341 Flowers Foods, Inc. 11 10 - 62 Hanover Insurance Group Inc. 9 9 - 553 General Mills, Inc. 46 41 0.2 3,200 MS&AD Insurance Group Holdings, Inc. 121 124 0.4 75 George Weston Limited 7 7 - 135 NN Group NV 7 7 - 316 Hormel Foods Corporation 21 19 0.1 483 Old Republic International Corporation 12 12 - 318 Kellogg Co. 28 25 0.1 468 Sun Life Financial Inc. 25 27 0.1 649 Mondelez International Inc. Cl. A 45 48 0.2 100 The Progressive Corporation 11 13 0.1 202 The Hershey Company 37 39 0.1 200 Tokio Marine Holdings, Inc. 11 13 0.1 512 Unilever PLC 40 39 0.1 292 314 1.1 101 Viscofan, SA 9 9 - 264 260 0.9 Interactive Media & Services 121 Alphabet Inc. Cl. C 246 270 1.0 Gas Utilities 400 DIP Corporation 12 13 - 54 Atmos Energy Corporation 7 7 - 865 Facebook, Inc. Cl. A 281 301 1.1 219 National Fuel Gas Company 12 11 - 539 584 2.1 500 Osaka Gas Co., Ltd. 14 13 0.1 97 Southwest Gas Holdings, Inc. 8 8 - Internet & Direct Marketing Retail 41 39 0.1 91 Amazon.com, Inc. 361 377 1.3

Health Care Equipment & Supplies Internet Software & Services 109 Coloplast A/S Series B 23 21 0.1 781 eBay Inc. 54 50 0.2 28 Danaher Corporation 8 8 - 2,216 Fisher & Paykel Healthcare IT Services Corporation Limited 65 67 0.2 266 Accenture PLC Cl. A 71 88 0.3 500 Medtronic Public Limited Company 66 75 0.3 578 Amdocs Limited 46 52 0.2 93 Quidel Corporation 31 21 0.1 175 Booz Allen Hamilton Holding Corp. Cl. A 19 19 0.1 114 West Pharmaceutical Services, Inc. 43 41 0.1 46 Broadridge Financial Solutions Inc. 9 9 - 236 233 0.8 65 ExlService Holdings, Inc. 7 7 - 80 Jack Henry & Associates, Inc. 20 17 0.1 Health Care Providers & Services 183 Square, Inc. Cl. A 50 51 0.2 1,107 Cardinal Health, Inc. 78 75 0.3 326 Western Union Company 9 9 - 210 CVS Health Corporation 18 18 0.1 231 252 0.9 52 DaVita Inc. 6 8 - 45 Humana Inc. 25 24 0.1 Leisure Products 68 Laboratory Corporation of America 295 Hasbro, Inc. 29 35 0.1 Holdings 18 18 0.1 928 Nautilus, Inc. 21 22 0.1 36 McKesson Corporation 7 8 - 70 Quest Diagnostics Incorporated 11 11 - 50 57 0.2 388 UnitedHealth Group Incorporated 161 173 0.6 324 335 1.2

120 LAZARD GLOBAL BALANCED INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Machinery Professional Services 250 Cummins Inc. $ 65 $ 72 0.2 1,636 RELX PLC $ 51 $ 51 0.2 99 FANUC Corporation 23 31 0.1 88 Graco Inc. 8 8 - Real Estate Management & Development 493 Husqvarna AB Series B 7 8 - 100 Daito Trust Construction Co., Ltd. 13 12 0.1 767 Kennametal Inc. 33 36 0.1 2,000 Hysan Development Company, Limited 8 9 - 156 PACCAR Inc. 18 17 0.1 4,000 Sun Hung Kai Properties Limited 66 65 0.2 501 Toromont Industries, Ltd. 33 45 0.2 87 86 0.3 1,231 Valmet OYJ 44 45 0.2 231 262 0.9 Road & Rail 99 J.B. Hunt Transport Services, Inc. 18 17 0.1 Marine 11,000 SITC International Holdings Company Semiconductors & Semiconductor Equipment Limited 22 30 0.1 204 Advanced Micro Devices Incorporated 22 24 0.1 683 Applied Materials, Inc. 51 75 0.2 Media 75 ASM International NV 16 21 0.1 14 Charter Communications, Inc. Cl. A 12 12 - 387 Texas Instruments Incorporated 63 81 0.3 414 Cogeco Communications Inc. 39 40 0.2 152 201 0.7 325 Comcast Corporation Cl. A 17 21 0.1 200 Fuji Media Holdings, Inc. 3 3 - Software 86 Omnicom Group Inc. 7 7 - 117 Adobe Inc. 74 75 0.3 2,702 ProSiebenSat.1 Media SE 46 58 0.2 1,320 Cadence Design Systems Inc. 173 229 0.8 694 Quebecor Inc. Cl. B 22 23 0.1 35 Electronic Arts Inc. 6 6 - 481 Shaw Communications Inc. Cl. B 12 11 - 505 Intuit Inc. 211 244 0.9 792 The Interpublic Group of 1,670 Microsoft Corporation 424 473 1.7 Companies, Inc. 20 24 0.1 238 ServiceNow, Inc. 151 167 0.6 178 199 0.7 954 Synopsys Inc. 244 315 1.1 200 Trend Micro Incorporated 16 15 0.1 Metals & Mining 75 Zoom Video Communications, Inc. Cl. A 43 32 0.1 337 BHP Group PLC 9 11 - 1,342 1,556 5.6 1,111 Centerra Gold Inc. 15 16 0.1 11,254 Fortescue Metals Group Limited 156 259 0.9 Specialty Retail 796 Kirkland Lake Gold Ltd. 50 42 0.2 228 Best Buy Co., Inc. 28 29 0.1 181 Newmont Corporation 15 14 0.1 1,473 Dollarama Inc. 79 76 0.3 307 Rio Tinto Limited 28 34 0.1 820 Industria de Diseno Textil, SA 31 33 0.1 404 Rio Tinto PLC 29 39 0.1 500 K's Holdings Corporation 8 9 - 302 415 1.5 87 Lowe's Companies, Inc. 16 18 0.1 378 The Home Depot, Inc. 131 128 0.4 Mortgage Real Estate Investment Trusts (REITs) 19 The Sherwin-Williams Company 18 18 0.1 95 Equity Lifestyle Properties, Inc. 7 8 - 296 Tractor Supply Company 52 53 0.2 363 364 1.3 Multiline Retail 19 Costco Wholesale Corporation 8 9 - Technology Hardware, Storage & Peripherals 110 Dollar General Corp. 28 29 0.1 3,783 Apple Inc. 479 639 2.3 675 Target Corporation 126 152 0.6 99 NVIDIA Corporation 67 66 0.2 162 190 0.7 546 705 2.5

Multi-Utilities Tobacco 1,649 AGL Energy Limited 25 19 0.1 1,324 Altria Group, Inc. 73 69 0.2 88 CMS Energy Corp. 7 7 - 1,435 Imperial Brands PLC 36 39 0.1 2,791 Engie SA 43 55 0.2 3,900 Japan Tobacco Inc. 98 101 0.4 239 MDU Resources Group, Inc. 8 8 - 227 Philip Morris International Inc. 24 24 0.1 4,879 National Grid PLC 76 73 0.3 231 233 0.8 75 Sempra Energy 12 12 0.1 57 WEC Energy Group, Inc. 7 7 - Trading Companies & Distributors 143 Xcel Energy Inc. 12 12 - 500 Itochu Corporation 17 18 0.1 190 193 0.7 400 Mitsubishi Corporation 12 13 - 200 MITSUI & Co., Ltd. 4 5 - Oil, Gas & Consumable Fuels 33 36 0.1 12,500 ENEOS Holdings, Inc. 56 57 0.2 372 Gaztransport Et Technigaz SA 38 46 0.2 Transportation Infrastructure 2,945 Royal Dutch Shell PLC Cl. A 54 65 0.2 100 East Japan Railway Company 10 8 - 251 Total SE 12 14 0.1 511 Valero Energy Corporation 45 37 0.1 Water Utilities 205 219 0.8 112 California Water Service Group 7 8 - Pharmaceuticals 1,134 AbbVie Inc. 141 155 0.6 99 AmerisourceBergen Corporation 13 12 - 838 Bristol-Myers Squibb Company 69 66 0.2 588 Eli Lilly and Company 114 127 0.4 2,183 GlaxoSmithKline PLC 58 51 0.2 668 Johnson & Johnson 132 134 0.5 2,144 Merck & Co., Inc. 230 223 0.8 1,194 Novartis AG 139 143 0.5 2,573 Novo Nordisk A/S Cl. B 231 229 0.8 1,583 Pﬁzer Inc. 81 74 0.3 366 Roche Holding AG 171 162 0.6 2,049 Viatris Inc. 46 49 0.2 34 Zoetis Inc. Cl. A 7 7 - 1,432 1,432 5.1

121 LAZARD GLOBAL BALANCED INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS Wireless Telecommunications Services 1,300 KDDI Corporation $ 50 $ 49 0.2 71,800 NetLink NBN Trust 68 67 0.2 445 Rogers Communications Inc. Cl. B 26 26 0.1 6,900 SoftBank Corp. 111 110 0.4 20,027 Vodafone Group PLC 39 42 0.2 294 294 1.1

Total Equities 13,359 14,398 51.5

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME Government USD 70,000 African Development Bank 0.75% Apr 03/2023 99 90 0.3 NOK 1,000,000 City of Oslo 0.91% May 06/2026 141 149 0.5 NOK 1,000,000 City of Oslo 2.35% Sep 04/2024 149 156 0.6 CAD 73,000 City of Vancouver 2.90% Nov 20/2025 78 81 0.3 CZK 6,050,000 Czech Republic 2.00% Oct 13/2033 390 385 1.4 USD 45,000 European Bank for Reconstruction and Development 1.63% Sep 27/2024 65 60 0.2 CAD 80,000 European Investment Bank 1.13% Sep 16/2021 80 81 0.3 USD 200,000 Government of Bermuda 3.72% Jan 25/2027 282 287 1.0 RON 465,000 Government of Romania 4.00% Oct 27/2021 148 151 0.5 RON 465,000 Government of Romania 4.75% Feb 24/2025 153 161 0.6 CAD 65,000 International Bank for Reconstruction & Development 1.90% Jan 16/2025 68 68 0.2 CAD 225,000 International Bank for Reconstruction & Development 2.50% Aug 03/2023 236 238 0.8 AUD 130,000 International Bank for Reconstruction & Development 2.90% Nov 26/2025 134 142 0.5 USD 105,000 International Finance Corporation 2.13% Apr 07/2026 156 145 0.5 AUD 115,000 International Finance Corporation 2.70% Mar 15/2023 111 119 0.4 USD 200,000 Japan International Cooperation Agency 2.13% Oct 20/2026 289 274 1.0 EUR 80,000 Kingdom of Spain 1.20% Oct 31/2040 129 138 0.5 USD 200,000 Nederlandse Waterschapsbank NV 0.50% Dec 02/2025 259 255 0.9 AUD 135,000 New South Wales Treasury Corporation 1.25% Nov 20/2030 132 133 0.5 USD 30,000 New York State Urban Development Corp. 3.90% Mar 15/2033 45 44 0.2 NZD 235,000 New Zealand Local Government Funding Agency Limited 4.50% Apr 15/2027 248 263 0.9 CAD 190,000 Province of British Columbia 4.70% Jun 18/2037 269 271 1.0 CAD 190,000 Province of Quebec 1.85% Feb 13/2027 201 202 0.7 USD 100,000 Province of Quebec 2.50% Apr 20/2026 148 140 0.5 AUD 135,000 Queensland Treasury Corporation 1.25% Mar 10/2031 130 133 0.5 EUR 100,000 Republic of Chile 0.83% Jul 02/2031 151 163 0.6 CLP 90,000,000 Republic of Chile 2.30% Oct 01/2028 154 162 0.6 USD 200,000 Republic of Chile 3.13% Jan 21/2026 302 283 1.0 CLP 65,000,000 Republic of Chile 4.50% Mar 01/2026 132 134 0.5 EUR 80,000 Republic of Italy 1.45% Mar 01/2036 132 134 0.5 USD 200,000 Republic of Panama 4.00% Sep 22/2024 297 282 1.0 PLN 320,000 Republic of Poland 2.50% Jul 25/2027 120 121 0.4 PLN 400,000 Republic of Poland 2.75% Oct 25/2029 155 156 0.6 SGD 165,000 Republic of Singapore 3.38% Sep 01/2033 202 203 0.7 USD 20,000 State of California 4.50% Apr 01/2033 32 31 0.1 USD 35,000 State of California 7.50% Apr 01/2034 76 74 0.3 USD 60,000 State of California 7.55% Apr 01/2039 140 134 0.5 USD 100,000 State of Georgia Municipal Bond 2.38% Feb 01/2027 140 137 0.5 GBP 100,000 Tesco Corporate Treasury Services PLC 2.75% Apr 27/2030 190 194 0.7 EUR 40,000 The Republic of Hungary 1.75% Jun 05/2035 69 69 0.2 HUF 32,300,000 The Republic of Hungary 2.50% Oct 24/2024 148 147 0.5 HUF 28,410,000 The Republic of Hungary 2.75% Dec 22/2026 133 131 0.5 HUF 31,790,000 The Republic of Hungary 3.00% Oct 27/2027 149 149 0.5 GBP 31,000 United Kingdom Treasury 1.50% Jul 22/2047 63 64 0.2 GBP 75,000 United Kingdom Treasury 1.75% Sep 07/2037 150 155 0.5 GBP 35,000 United Mexican States 6.75% Feb 06/2024 67 72 0.3 MXN 1,820,000 United Mexican States 7.50% Jun 03/2027 132 133 0.5 USD 200,000 United States Treasury Bond 2.88% Aug 15/2028 322 296 1.1 7,596 7,590 27.1

Corporate USD 7,000 ABB Finance (USA) Inc. 4.38% May 08/2042 12 12 - USD 100,000 Adobe Inc. 2.30% Feb 01/2030 147 138 0.5 USD 105,000 Alphabet Inc. 1.10% Aug 15/2030 140 132 0.5 USD 80,000 Amazon.com, Inc. 3.15% Aug 22/2027 125 116 0.4 USD 106,000 American Express Company 3.00% Oct 30/2024 154 148 0.5 USD 90,000 Apple Inc. 3.00% Jun 20/2027 131 128 0.5 USD 90,000 Asian Development Bank 2.13% Mar 19/2025 132 123 0.4 USD 50,000 Bank of America Corporation 1.49% May 19/2024 70 65 0.2 USD 98,000 Bank of America Corporation 3.50% May 17/2022 139 126 0.4 GBP 35,000 BMW Finance NV 0.88% Aug 16/2022 58 62 0.2 USD 170,000 Canadian Imperial Bank of Commerce 0.95% Oct 23/2025 224 220 0.8 AUD 104,000 Citigroup Inc. 1.58% May 04/2021 96 102 0.4 USD 104,000 Constellation Brands, Inc. 4.25% May 01/2023 156 144 0.5 EUR 200,000 Daimler AG 0.00% Jul 03/2024 301 311 1.1

122 LAZARD GLOBAL BALANCED INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS FIXED INCOME (continued) Corporate USD 65,000 Dell International LLC / EMC Corp. 5.30% Oct 01/2029 100 102 0.4 CAD 150,000 Export Development Canada 1.80% Sep 01/2022 154 154 0.6 USD 45,000 HCA Inc. 5.00% Mar 15/2024 67 65 0.2 IDR 770,000,000 Inter-American Development Bank 7.88% Mar 14/2023 75 75 0.3 CAD 230,000 John Deere Financial Inc. 2.41% Jan 14/2025 239 245 0.9 USD 89,000 Johnson & Johnson 3.63% Mar 03/2037 145 139 0.5 USD 110,000 JPMorgan Chase & Co 3.54% May 01/2028 165 160 0.6 USD 59,000 Kimberly-Clark Corporation 3.20% Apr 25/2029 93 87 0.3 CAD 130,000 McDonald's Corporation 3.13% Mar 04/2025 136 141 0.5 USD 80,000 Microsoft Corporation 3.50% Nov 15/2042 131 126 0.4 USD 83,000 Morgan Stanley 3.63% Jan 20/2027 126 121 0.4 AUD 145,000 New South Wales Treasury Corporation 3.00% Feb 20/2030 153 166 0.6 USD 115,000 PepsiCo, Inc. 2.88% Oct 15/2049 168 164 0.6 USD 95,000 Pﬁzer Inc. 2.63% Apr 01/2030 143 135 0.5 CAD 140,000 Rogers Communications Inc. 3.25% May 01/2029 150 156 0.6 USD 98,000 Schneider Electric SE 2.95% Sep 27/2022 140 130 0.5 USD 30,000 Sealed Air Corporation 4.88% Dec 01/2022 43 40 0.1 USD 53,000 Service Corporation International 4.63% Dec 15/2027 76 72 0.3 USD 100,000 Starbucks Corporation 4.45% Aug 15/2049 161 168 0.6 AUD 140,000 Telstra Corporation Limited 4.00% Sep 16/2022 135 146 0.5 USD 109,000 The Goldman Sachs Group, Inc. 3.63% Jan 22/2023 159 148 0.5 USD 75,000 The Home Depot, Inc. 5.88% Dec 16/2036 151 145 0.5 USD 105,000 The Procter & Gamble Company 1.20% Oct 29/2030 133 134 0.5 USD 100,000 Toyota Motor Credit Corporation 2.15% Feb 13/2030 142 137 0.5 USD 100,000 Unilever Capital Corporation 3.25% Mar 07/2024 145 138 0.5 USD 55,000 United Rentals (North America), Inc. 4.88% Jan 15/2028 78 75 0.3 USD 96,000 Verizon Communications Inc. 3.88% Feb 08/2029 151 144 0.5 5,444 5,340 19.1

Total Fixed Income 13,040 12,930 46.2

Total Investments 26,399 27,328 97.7 Foreign Exchange Contracts (a) 34 0.1 Other Assets Less Liabilities 607 2.2 Net Assets Attributable to Holders of Redeemable Units 27,969 100.0

123 LAZARD GLOBAL BALANCED INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 2 CHF 1 1.44477 $ - Jan 4, 2021 CAD 5 DKK 25 0.21094 to 0.21095 - Jan 4, 2021 CAD 7 EUR 4 1.56776 - Jan 4, 2021 CAD 5 GBP 3 1.73612 to 1.74044 - Jan 4, 2021 CAD 15 JPY 1,218 0.01234 to 0.01234 - Jan 4, 2021 CAD 34 USD 27 1.27180 to 1.27483 - Jan 5, 2021 CAD 1 SGD 1 0.96283 - Jan 20, 2021 AUD 116 CAD 111 1.02857 to 1.04600 3 Jan 20, 2021 CAD 953 AUD 991 0.94121 to 0.96442 (19) Jan 20, 2021 CAD 22 CHF 15 1.44579 - Jan 20, 2021 CAD 58 CNH 300 0.19436 - Jan 20, 2021 CAD 570 EUR 366 1.55504 to 1.56010 1 Jan 20, 2021 CAD 540 GBP 314 1.70610 to 1.74010 (7) Jan 20, 2021 CAD 293 JPY 23,115 0.01262 to 0.01269 8 Jan 20, 2021 CAD 68 MXN 1,057 0.06423 - Jan 20, 2021 CAD 22 NOK 155 0.13971 (1) Jan 20, 2021 CAD 354 NZD 400 0.88456 to 0.88487 (13) Jan 20, 2021 CAD 301 PLN 863 0.34200 to 0.35032 7 Jan 20, 2021 CAD 203 SGD 212 0.95633 to 0.95670 (2) Jan 20, 2021 CAD 7,490 USD 5,698 1.27369 to 1.33761 234 Jan 20, 2021 CHF 119 CAD 174 0.68622 to 0.68629 (2) Jan 20, 2021 CHF 84 USD 92 0.91182 3 Jan 20, 2021 CHF 45 USD 51 0.88869 - Jan 20, 2021 CNH 1,465 USD 215 6.80000 to 6.81590 13 Jan 20, 2021 EUR 354 CAD 550 0.63711 to 0.64501 - Jan 20, 2021 EUR 142 USD 167 0.84561 to 0.85152 8 Jan 20, 2021 EUR 95 USD 115 0.82707 to 0.83675 2 Jan 20, 2021 GBP 187 CAD 320 0.57162 to 0.58724 5 Jan 20, 2021 JPY 116,313 CAD 1,462 79.53550 to 79.56007 (28) Jan 20, 2021 JPY 4,755 USD 45 105.19730 1 Jan 20, 2021 MXN 258 CAD 16 16.43869 1 Jan 20, 2021 NZD 117 CAD 107 1.09824 to 1.10076 1 Jan 20, 2021 PLN 671 CAD 233 2.87575 to 2.87717 (5) Jan 20, 2021 RUB 1,426 USD 19 75.82650 - Jan 20, 2021 SEK 173 CAD 26 6.66472 1 Jan 20, 2021 SGD 172 CAD 167 1.03089 to 1.03100 (1) Jan 20, 2021 THB 592 USD 19 31.31300 1 Jan 20, 2021 USD 2,885 CAD 3,794 0.74743 to 0.78305 (119) Jan 20, 2021 USD 179 CHF 163 1.09841 (7) Jan 20, 2021 USD 183 JPY 19,196 0.00954 (3) Jan 20, 2021 USD 101 PLN 389 0.25691 to 0.26097 (5) Jan 20, 2021 USD 110 SGD 150 0.73003 (5) Jan 22, 2021 CAD 437 CZK 7,669 0.05689 to 0.05888 (18) Jan 22, 2021 CAD 421 HUF 99,173 0.00424 to 0.00431 (4) Jan 22, 2021 CAD 197 NOK 1,392 0.14121 to 0.14535 (10) Jan 22, 2021 CAD 92 RON 290 0.31592 to 0.31734 (1) Jan 22, 2021 CZK 2,178 CAD 129 16.88870 - Jan 22, 2021 EUR 76 RON 375 0.20367 (1) Jan 22, 2021 HUF 16,553 CAD 71 232.14280 - Jan 22, 2021 RON 112 CAD 36 3.14526 - Jan 22, 2021 USD 47 NOK 423 0.11049 (3) Feb 16, 2021 CAD 153 USD 117 1.30745 4 Feb 16, 2021 COP 56,850 USD 16 3621.00000 1 Feb 16, 2021 USD 185 CLP 143,314 0.00125 to 0.00131 (21) Feb 25, 2021 KRW 81,854 USD 73 1116.87998 2 Mar 4, 2021 CAD 51 CNH 257 0.19826 1 Mar 4, 2021 CNH 1,367 USD 200 6.67238 to 6.84070 12 $ 34 Notes: Counterparty—Citibank NA; Rating A+; —HSBC Holdings PLC; Rating A+; —JPMorgan Chase & Co.; Rating A+; —Morgan Stanley; Rating BBB+; —State Street Bank and Trust Co.; Rating AA-; —State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

124 LAZARD GLOBAL BALANCED INCOME FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Portfolio by Country Exposure Essentially all of the assets and liabilities of the Fund are financial instruments. DEC. 31 DEC. 31 These financial instruments comprise the following: 2020 (%) 2019 (%) Country Portfolio by Industry Exposure Australia 4.3 3.0 DEC. 31 DEC. 31 Belgium 0.1 0.2 2020 (%) 2019 (%) Bermuda 1.0 1.1 Canada 7.2 20.0 Equities Chile 2.7 0.4 Aerospace & Defense 1.0 1.2 Czech Republic 1.4 1.3 Air Freight & Logistics 0.8 - Denmark 0.9 0.5 Airlines - 0.7 Finland 0.2 - Auto Components 0.9 0.2 France 1.3 1.9 Automobiles 0.5 0.1 Germany 1.9 2.2 Beverages 0.9 1.0 Hong Kong 0.3 0.1 Biotechnology 0.8 0.3 Hungary 1.7 1.7 Building Products 0.1 - Ireland 0.6 0.8 Capital Markets 0.7 0.6 Israel - 0.3 Chemicals 1.0 0.8 Italy 0.9 1.6 Commercial Banks 1.0 2.6 Ivory Coast (Cote D'Ivoire) 0.3 - Commercial Services & Supplies 0.3 1.0 Japan 6.2 5.2 Communications Equipment 1.2 0.5 Luxembourg 0.3 0.4 Construction & Engineering 0.1 0.1 Macau 0.1 0.1 Consumer Finance 0.2 0.2 Mexico 0.8 0.3 Containers & Packaging 0.2 - Netherlands 2.0 1.0 Distributors - 0.1 New Zealand 1.1 1.0 Diversified Consumer Services 0.2 0.1 Norway 1.7 1.6 Diversified Financial Services 1.3 1.2 Panama 1.0 1.1 Diversified Telecommunications Services 0.9 1.0 Philippines 0.4 1.1 Electric Utilities 0.7 1.8 Poland 1.0 1.3 Electrical Equipment 0.6 0.3 Portugal - 0.1 Electronic Equipment, Instruments & Components 0.2 0.4 Romania 1.1 0.9 Entertainment 0.2 0.3 Singapore 1.0 0.6 Equity Real Estate Investment Trusts (REITs) 1.4 1.8 Spain 0.8 0.7 Food & Staples Retailing 1.6 1.1 Switzerland 1.6 1.6 Food Products 0.9 0.6 Sweden 0.2 0.1 Gas Utilities 0.1 0.2 United Kingdom 3.1 2.7 Health Care Equipment & Supplies 0.8 0.4 United States 50.5 41.7 Health Care Providers & Services 1.2 1.2 Short-term investments - 0.9 Hotels, Restaurants & Leisure 0.6 0.8 Household Durables 0.5 0.4 Total investments 97.7 97.5 Household Products 1.4 1.0 Foreign exchange contracts, net 0.1 0.1 Independent Power and Renewable Electricity Producers - 0.1 Total financial instruments at fair value 97.8 97.6 Industrial Conglomerates 0.2 0.5 Total other assets less liabilities at cost or amortized cost 2.2 2.4 Insurance 1.1 2.4 Interactive Media & Services 2.1 0.2 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Internet & Direct Marketing Retail 1.3 0.2 Internet Software & Services 0.2 - IT Services 0.9 1.2 Leisure Products 0.2 - FAIR VALUE MEASUREMENTS Machinery 0.9 0.3 Below is a summary of the inputs used as at December 31, 2020 and December Marine 0.1 - 31, 2019 in valuing the Fund’s investments carried at fair values. Media 0.7 1.0 Metals & Mining 1.5 1.4 DECEMBER 31, 2020 Mortgage Real Estate Investment Trusts (REITs) - - QUOTED PRICES SIGNIFICANT Multiline Retail 0.7 0.8 IN ACTIVE OTHER SIGNIFICANT Multi-Utilities 0.7 0.9 MARKETS FOR OBSERVABLE UNOBSERVABLE Oil, Gas & Consumable Fuels 0.8 1.3 IDENTICAL INPUTS INPUTS Personal Products - 0.4 ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Pharmaceuticals 5.1 4.4 ($000) ($000) ($000) ($000) Professional Services 0.2 - Equities 10,074 4,324 - 14,398 Real Estate Management & Development 0.3 0.5 Fixed-income Road & Rail 0.1 0.1 securities - 12,930 - 12,930 Semiconductors & Semiconductor Equipment 0.7 0.9 Total Investments 10,074 17,254 - 27,328 Software 5.6 1.9 Specialty Retail 1.3 1.6 Foreign Exchange Technology Hardware, Storage & Peripherals 2.5 1.4 Contracts, Net - 34 - 34 Textiles, Apparel & Luxury Goods - 0.7 Tobacco 0.8 0.5 Trading Companies & Distributors 0.1 0.2 Transportation Infrastructure - 0.2 Water Utilities - - Wireless Telecommunications Services 1.1 0.5 Fixed-income securities Corporate 19.1 14.9 Government 27.1 24.9 Mutual Funds - 11.2 Short-term investments - 0.9 Total investments 97.7 97.5 Foreign exchange contracts, net 0.1 0.1 Total financial instruments at fair value 97.8 97.6 Total other assets less liabilities at cost or amortized cost 2.2 2.4 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0

The notes at the back of this document are an integral part of these ﬁnancial statements. 125 LAZARD GLOBAL BALANCED INCOME FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 Foreign Currency Risk QUOTED PRICES SIGNIFICANT The tables below indicate the currencies to which the Fund had signiﬁcant IN ACTIVE OTHER SIGNIFICANT exposure on its ﬁnancial instruments as at December 31, 2020 and December MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS 31, 2019 in Canadian dollar terms, including the underlying principal of forward ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL exchange contracts, if any. ($000) ($000) ($000) ($000) Equities 8,012 3,837 - 11,849 DECEMBER 31, 2020 Mutual Funds 2,895 - - 2,895 INVESTMENTS CASH OTHER NET TOTAL Fixed-income CURRENCY ($000) ($000) ASSETS ($000) ($000) securities - 10,326 - 10,326 Australian Dollar 1,351 - (853) 498 Short-term Brazilian Real - - 2 2 investments 237 - 237 Chilean Peso 295 - (255) 40 Total Investments 10,907 14,400 - 25,307 Colombian Peso - - 21 21 Foreign Exchange Czech Koruna 385 - (324) 61 Contracts, Net - 24 - 24 Danish Krone 250 - - 250 Euro 1,719 - 484 2,203 Hong Kong Dollar 152 - - 152 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Hungarian Forint 427 - (353) 74 service provider to provide fair value adjustments, where applicable, to the prices Indonesian Rupiah 75 - 4 79 of foreign securities due to changes in the value of securities in North American Japanese Yen 1,382 - 976 2,358 markets following the closure of the foreign markets. The parameters used to Mexican Peso 133 - (50) 83 apply the fair value adjustments are based on observable market data, and as New Russian Ruble - - 24 24 New Zealand Dollar 330 - (257) 73 such, the foreign securities are considered Level 2 priced securities. Norwegian Krone 456 - (291) 165 Polish Zloty 277 - (194) 83 During the year ended December 31, 2020, $0.1 million were transferred from Pound Sterling 978 1 (212) 767 Level 1 to Level 2. During the year ended December 31, 2019, $0.0 million were Romanian Leu 312 - (169) 143 transferred from Level 2 to Level 1. Singapore Dollar 306 - (181) 125 South Korean Won - - 96 96 Swedish Krona 70 - 27 97 FINANCIAL INSTRUMENTS RISKS Swiss Franc 430 - 110 540 Thailand Baht - - 25 25 The fundamental investment objective of the Lazard Global Balanced Income U.S. Dollar 15,909 255 (3,936) 12,228 Fund is to achieve long-term capital appreciation and to generate income by Yuan Renminbi - - 445 445 investing primarily in the equity and debt securities of issuers based around the Total 25,237 256 (4,861) 20,632 globe. By combining equity and debt and periodically readjusting allocations, the Fund seeks to create a lower volatility pattern of returns when compared to % of Net Assets 90.2 0.9 (17.4) 73.7 global equities.

Market Price Risk As at December 31, 2020, if the Fund's benchmark (25% MSCI All Country World Index, 25% Bloomberg Barclays Global Aggregate Bond Index, 25% MSCI All Country World Index (Hedged), 25% Bloomberg Barclays Global Aggregate Bond Index (Hedged)) for these securities increased or decreased by 10%, with all other variables held constant, the net assets of the Fund would have increased or decreased, respectively, by approximately $1.3 million (December 31, 2019—$1.4 million), or 4.7% (December 31, 2019—5.5%) of total net assets. This impact is estimated based on the historical correlation between the return of Series I units of the Fund as compared to the return of the Fund’s benchmark. In practice, the historical correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different.

126 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD GLOBAL BALANCED INCOME FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 At December 31, 2020, if the prevailing interest rates had risen or declined by INVESTMENTS CASH OTHER NET TOTAL 0.25% (December 31, 2019—0.25%), assuming a parallel shift in the yield CURRENCY ($000) ($000) ASSETS ($000) ($000) curve, with all other variables held constant, net assets would have increased or Australian Dollar 1,256 - (599) 657 decreased, respectively, by approximately $0.2 million (December 31, Brazilian Real 129 1 9 139 2019—$0.04 million), or 0.7% (December 31, 2019—0.2%) of total net assets. Chilean Peso 95 - (88) 7 The Fund’s sensitivity to interest rate changes was estimated using the weighted Colombian Peso - - 11 11 average duration of the bonds. In practice, the actual results may differ from this Czech Koruna 343 - 3 346 sensitivity analysis and the difference could be material. Danish Krone 131 - - 131 Dominican Peso 25 - 1 26 Egyptian Pound 40 6 - 46 Euro 1,333 - 555 1,888 Credit Risk Ghanaian cedi - 1 - 1 The Fund invested directly in debt securities and indirectly through its investment Hong Kong Dollar 338 - - 338 in the Lazard Emerging Markets Multi-Asset Fund as at December 31, 2019. After Hungarian Forint 345 - (304) 41 the Lazard Emerging Markets Multi-Asset Fund merged with the Fund on May 22, Indian Rupee - - 46 46 2020, the Fund invested directly in debt securities only as at December 31, 2020. Indonesian Rupiah 118 10 5 133 The credit ratings were as follow: Israeli Shekel 45 - 5 50 Japanese Yen 1,034 - 885 1,919 DECEMBER 31, 2020 DECEMBER 31, 2019 Kazakhstan Tenge - - 16 16 DEBT SECURITIES % OF TOTAL % OF TOTAL Kenyan Shilling - - 5 5 BY CREDIT DEBT % OF DEBT % OF Malaysian Ringgit 41 - - 41 RATING* INSTRUMENTS NET ASSETS INSTRUMENTS NET ASSETS Mexican Peso 357 - (190) 167 AAA/Aaa 24.0 11.1 33.8 14.1 New Russian Ruble 15 - 36 51 AA/Aa 17.9 8.3 13.4 5.6 New Taiwan Dollar 151 - - 151 A/A 33.5 15.4 25.6 10.7 New Zealand Dollar 387 - (306) 81 BBB/Baa 21.0 9.7 18.3 7.6 Norwegian Krone 426 - (92) 334 BB/Ba 1.5 0.7 1.9 0.8 Peruvian Sol 14 - 30 44 B/B - - 1.2 0.5 Philippine Peso 22 - 12 34 CCC/Caa - - 0.1 0.1 Polish Zloty 349 8 (288) 69 CC/Ca - - 0.3 0.1 Pound Sterling 1,079 2 (327) 754 D - - - - Romanian Leu 222 - (110) 112 Unrated 2.1 1.0 5.4 2.3 Singapore Dollar 124 - 31 155 South African Rand 16 - 5 21 Total 100.0 46.2 100.0 41.8 South Korean Won 272 - 70 342 *Excludes cash & cash equivalents Swedish Krona 24 - 24 48 Swiss Franc 392 - 38 430 Credit ratings are obtained from Standard & Poor’s, Moody’s and Dominion Bond Thailand Baht - - 15 15 U.S. Dollar 13,347 397 (3,824) 9,920 Rating Service. When more than one rating is obtained for a security, the average Uganda Shilling - - 7 7 rating has been used. Ukrainian Hryvnia 4 - - 4 Uruguayan Peso - - 19 19 Yuan Renminbi - - 26 26 SECURITIES LENDING Total 22,474 425 (4,274) 18,625 The aggregate market value of all securities loaned by a fund cannot exceed 50% % Net Assets 86.6 1.6 (16.5) 71.7 of the net assets of the applicable Fund. The Funds receive collateral of at least 102% of the value of the securities on loan. Collateral may comprise of obligations As at December 31, 2020, if the Canadian dollar had strengthened or weakened of or guaranteed by the Government of Canada, or a province thereof, or by the by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all United States government or its agencies. other variables held constant, the Fund’s net assets would have decreased or As at December 31, 2020 and 2019 the fair value of securities on loan and increased, respectively, by approximately $0.4 million (December 31, collateral received was $Nil. 2019—$0.4 million), or 1.5% (December 31, 2019—1.4%) of total net assets. In practice, the actual results may differ from this sensitivity analysis and the difference could be material. OFFSETTING OF FINANCIAL INSTRUMENTS The fund enters into various master netting agreements or other similar Interest Rate Risk agreements that do not meet the criteria for offsetting in the Statements of The Fund had direct interest rate exposure through its portfolio holdings and Financial Position but still allow for the related amounts to be set off in certain indirect interest exposure through its investment in the Lazard Emerging Markets circumstances, such as bankruptcy or termination of the contracts. The following Multi-Asset Fund as at December 31, 2019. After the Lazard Emerging Markets table presents ﬁnancial instruments that are offset, or subject to enforceable Multi-Asset Fund merged with the Fund on May 22, 2020, the Fund had direct master netting agreements or other similar agreements but that are not offset, as interest rate exposure only through its portfolio holdings as at December 31, at December 31, 2020 and December 31, 2019. The ‘Net’ column shows what 2020. The exposure to interest rate risk by remaining term to maturity was the impact on the Fund’s Statements of Financial Position would be if all set-off as follow: rights were exercised.

DECEMBER 31, 2020 DECEMBER 31, 2019 DECEMBER 31, 2020 DEBT % OF % OF AMOUNTS INSTRUMENTS ($000) NET ASSETS ($000) NET ASSETS PRESENTED IN Less than 1 year 334 1.2 1,209 4.7 THE STATEMENT 1 to 3 years 1,472 5.2 1,932 7.4 OF FINANCIAL 3 to 5 years 2,879 10.3 2,107 8.1 POSITION AMOUNTS ELIGIBLE FOR OFFSET NET Greater than 5 years 8,245 29.5 6,016 23.2 FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH Total 12,930 46.2 11,264 43.4 AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 311 (258) - 53 Payable for open foreign currency spot or exchange contracts (277) 258 - (19)

The notes at the back of this document are an integral part of these ﬁnancial statements. 127 LAZARD GLOBAL BALANCED INCOME FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2019 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 85 (55) - 30 Payable for open foreign currency spot or exchange contracts (61) 55 - (6)

SIGNIFICANT EVENTS On May 22, 2020, the Lazard Emerging Markets Multi-Asset Fund (the “Discontinued Fund”) merged with the Fund (the “Continuing Fund”). Pursuant to this transaction, the Continuing Fund acquired all of the net assets of the Discontinued Fund at fair value in exchange for units in the equivalent series of the Continuing Fund. The value of the units issued in connection with this merger was equal to the market value of the net assets transferred from the Discontinued Fund as at May 22, 2020. This merger was effected on a taxable deferred basis. The Discontinued Fund was terminated and wound-up after the merger was completed.

The number of units issued and the fair value of assets acquired by the Continuing Fund as at May 22, 2020 were as follows:

Series Units of Discontinuing Fund Fair Value of Net Number of Units Assets Acquired by Series Units of Series Units of Issued by the the Continuing Fund Discontinuing Fund Continuing Fund Continuing Fund ($000) Series A Series A 417,185 4,100 Series F Series F 420,763 4,290 Series I Series I 121,491 1,260

The ﬁnancial statements of the Continuing Fund do not include the operating results of the Discontinuing Fund prior to the merger date of May 22, 2020.

128 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD GLOBAL COMPOUNDERS FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 71,539 $ 32,631 Cash 2,166 1,584 Receivable for redeemable unit subscriptions 255 154 Dividends and accrued interest receivable 45 24 Receivable for open foreign currency spot or forward contracts 29 17 74,034 34,410

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 159 80 Payable for open foreign currency spot or forward contracts 6 2 165 82

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 73,869 $ 34,328 Cost of investments 54,044 26,591

Net assets attributable to holders of redeemable units, Series A $ 29,564 $ 12,881 Number of redeemable units outstanding, Series A 1,637 853 Net assets attributable to holders of redeemable units per unit, Series A 18.06 15.11 Net assets attributable to holders of redeemable units per unit, Series A (USD) 14.18 11.64

Net assets attributable to holders of redeemable units, Series F $ 43,282 $ 20,539 Number of redeemable units outstanding, Series F 2,294 1,315 Net assets attributable to holders of redeemable units per unit, Series F 18.87 15.61 Net assets attributable to holders of redeemable units per unit, Series F (USD) 14.81 12.02

Net assets attributable to holders of redeemable units, Series I $ 1 $ - Number of redeemable units outstanding, Series I - - Net assets attributable to holders of redeemable units per unit, Series I 19.05 15.61

Net assets attributable to holders of redeemable units, Series AH $ 746 $ 547 Number of redeemable units outstanding, Series AH 42 36 Net assets attributable to holders of redeemable units per unit, Series AH 17.88 15.18

Net assets attributable to holders of redeemable units, Series FH $ 275 $ 361 Number of redeemable units outstanding, Series FH 15 23 Net assets attributable to holders of redeemable units per unit, Series FH 18.44 15.49

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

129 LAZARD GLOBAL COMPOUNDERS FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 511 $ 404 Interest for distribution purposes 1 2 Management Fee Rebates income 91 90 Net realized gain (loss) on sale of investments (214) 444 Net change in unrealized appreciation (depreciation) of investments 11,455 5,387 Net gain (loss) on investments 11,844 6,327

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 26 (23) Net change in unrealized appreciation (depreciation) of foreign exchange contracts 8 57 Net gain (loss) on derivatives 34 34

Net realized gain (loss) on foreign currencies (83) (19) Net change in unrealized appreciation (depreciation) of foreign currencies 6 (6) Total net income (loss) 11,801 6,336

EXPENSES (note 6) Management fees 620 367 Legal - 1 Audit 7 3 Independent review committee 3 1 Custody and fund accounting 44 31 Filing fees 24 24 Unitholder reporting 4 3 Administration and transfer agent fees 99 52 Foreign withholding taxes 57 32 Transaction costs (note 3) 16 8 874 522 Expenses absorbed (40) (43) Total expenses net of absorption 834 479

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 4,005 $ 1,979 Series F 6,803 3,682 Series I 1 - Series AH 112 141 Series FH 45 55 Series IH 1 - TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 10,967 5,857

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 3.26 $ 2.94 Series F 3.65 3.26 Series I 3.44 3.42 Series AH 2.92 3.75 Series FH 2.08 3.81 Series IH 3.27 4.10

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

130 LAZARD GLOBAL COMPOUNDERS FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 4,005 1,979 6,803 3,682 1 -

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (23) - (17) - - Return of capital (39) (18) (50) (29) - - (39) (41) (50) (46) - -

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 14,775 5,526 20,706 6,536 - - Reinvested distributions to holders of redeemable units 39 41 50 46 - - Net proceeds/(payments) from/for redeemable units transferred in/(out) (198) (72) 198 72 - - Payments for redeemable units redeemed (1,899) (1,272) (4,964) (4,096) - - 12,717 4,223 15,990 2,558 - -

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 16,683 6,161 22,743 6,194 1 -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 29,564 $ 12,881 $ 43,282 $ 20,539 $ 1 $ -

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 852,520 556,030 1,315,464 1,160,790 31 31 Redeemable units issued for cash 921,133 391,404 1,268,547 447,136 - - Redeemable units issued for reinvested distributions 2,434 2,963 3,001 3,179 - - Net redeemable units transferred in/(out) (12,149) (5,395) 11,689 5,263 - - Redeemable units redeemed (127,188) (92,482) (304,627) (300,904) - - BALANCE, END OF YEAR 1,636,750 852,520 2,294,074 1,315,464 31 31

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 112 141 45 55 1 -

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (1) - - - - Return of capital (2) (1) (1) (1) - - (2) (2) (1) (1) - -

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 162 18 100 178 - - Reinvested distributions to holders of redeemable units 2 2 1 1 - - Net proceeds/(payments) from/for redeemable units transferred in/(out) ------Payments for redeemable units redeemed (75) (79) (231) - - - 89 (59) (130) 179 - -

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 199 80 (86) 233 1 -

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 746 $ 547 $ 275 $ 361 $ 1 $ -

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 36,055 40,345 23,269 10,897 31 31 Redeemable units issued for cash 10,861 1,320 6,357 12,335 - - Redeemable units issued for reinvested distributions 104 179 41 37 - - Net redeemable units transferred in/(out) ------Redeemable units redeemed (5,261) (5,789) (14,774) - - - BALANCE, END OF YEAR 41,759 36,055 14,893 23,269 31 31

131 LAZARD GLOBAL COMPOUNDERS FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (CONTINUED)

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 34,328 $ 21,660

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 10,967 5,857

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (41) Return of capital (92) (49) (92) (90)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 35,743 12,258 Reinvested distributions to holders of redeemable units 92 90 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (7,169) (5,447) 28,666 6,901

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 39,541 12,668

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 73,869 $ 34,328

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

132 LAZARD GLOBAL COMPOUNDERS FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 10,967 $ 5,857

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 214 (444) Unrealized (appreciation) depreciation on foreign cash - 5 Net change in unrealized (appreciation) depreciation of investments (11,455) (5,387) Net change in unrealized (appreciation) depreciation of foreign exchange contracts (8) (57) Purchase of investments (32,110) (11,112) Proceeds from sale of investments 4,443 5,942 (27,949) (5,196)

CHANGE IN NON-CASH WORKING CAPITAL (21) 9

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 35,642 12,127 Amounts paid on redemption of redeemable units (7,090) (5,379) 28,552 6,748 NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH - (5)

NET INCREASE (DECREASE) IN CASH 582 1,556

CASH—BEGINNING OF YEAR 1,584 28

CASH—END OF YEAR 2,166 1,584

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 433 381 Interest 1 2

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

133 LAZARD GLOBAL COMPOUNDERS FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Beverages Personal Products 17,949 The Coca-Cola Company $ 1,196 $ 1,254 1.7 873 LG Household & Health Care, Ltd. $ 1,363 $ 1,659 2.2 4,828 The Estee Lauder Companies Inc. Cl. A 1,195 1,637 2.2 Biotechnology 2,558 3,296 4.4 3,978 Genmab A/S 1,210 2,053 2.8 Pharmaceuticals Building Products 6,980 AmerisourceBergen Corporation 811 869 1.2 43,758 ASSA ABLOY AB Series B 1,246 1,378 1.9 10,704 Zoetis Inc. Cl. A 1,633 2,256 3.0 2,444 3,125 4.2 Capital Markets 1,013 Partners Group Holding AG 1,031 1,515 2.0 Professional Services 6,169 S&P Global, Inc. 1,986 2,583 3.5 44,836 RELX PLC 1,339 1,395 1.9 3,017 4,098 5.5 53,300 SMS Co., Ltd. 1,501 2,602 3.5 11,872 Wolters Kluwer NV 1,159 1,275 1.7 Chemicals 3,999 5,272 7.1 8,165 Symrise AG 1,040 1,382 1.9 Semiconductors & Semiconductor Equipment Commercial Banks 16,073 Taiwan Semiconductor Manufacturing 24,487 HDFC Bank Limited ADR 1,754 2,253 3.0 Company, Ltd. ADR 1,088 2,232 3.0 18,294 National Bank of Canada 1,131 1,311 1.8 2,885 3,564 4.8 Software 3,563 Check Point Software Technologies, Ltd. 523 603 0.8 Commercial Services & Supplies 4,532 Intuit Inc. 1,509 2,193 3.0 7,195 Verisk Analytics, Inc. Cl. A 1,363 1,902 2.6 6,221 Microsoft Corporation 1,328 1,762 2.4 3,360 4,558 6.2 Diversiﬁed Financial Services 11,369 Intercontinental Exchange, Inc. 1,304 1,669 2.3 Specialty Retail 27,633 Dollarama Inc. 1,111 1,434 1.9 Electrical Equipment 11,000 Workman Co., Ltd. 1,263 1,195 1.6 9,990 AMETEK, Inc. 1,108 1,539 2.1 2,374 2,629 3.5 3,685 Rockwell Automation Inc. 886 1,177 1.6 1,994 2,716 3.7

Electronic Equipment, Instruments & Components Total Investments 54,044 71,539 96.8 9,689 Amphenol Corp. Cl. A 1,205 1,614 2.2 Foreign Exchange Contracts (a) 23 - 14,950 Hexagon AB Series B 1,067 1,747 2.3 Other Assets Less Liabilities 2,307 3.2 2,272 3,361 4.5 Net Assets Attributable to Holders of Redeemable Units 73,869 100.0 Entertainment 19,600 Toei Animation Co., Ltd. 1,223 1,958 2.7

Food & Staples Retailing 39,907 Clicks Group, Ltd. 770 874 1.2

Health Care Equipment & Supplies 3,064 Thermo Fisher Scientiﬁc Inc. 1,320 1,817 2.5

Health Care Providers & Services 6,770 IQVIA Holdings Inc. 1,210 1,545 2.1

Industrial Conglomerates 4,985 Honeywell International Inc. 1,023 1,350 1.8

Insurance 7,561 Aon PLC Cl. A 1,839 2,034 2.7 55,398 Prudential PLC 1,265 1,297 1.8 3,104 3,331 4.5

Interactive Media & Services 1,424 Alphabet Inc. Cl. A 2,387 3,179 4.3 16,800 Tencent Holdings Limited 1,114 1,539 2.1 3,501 4,718 6.4

Internet & Direct Marketing Retail 3,900 Alibaba Group Holding Limited ADR 970 1,156 1.6

IT Services 8,998 Accenture PLC Cl. A 2,168 2,993 4.0 8,427 Visa Inc. Cl. A 1,758 2,348 3.2 3,926 5,341 7.2

Leisure Products 5,700 Shimano Inc. 1,324 1,699 2.3

Machinery 5,820 Nordson Corporation 1,147 1,489 2.0 1,496 Rational AG 1,176 1,772 2.4 2,323 3,261 4.4

134 LAZARD GLOBAL COMPOUNDERS FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares)

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 USD 2 EUR 2 1.22204 $ - Jan 15, 2021 CAD 23 CHF 16 1.43182 to 1.45404 - Jan 15, 2021 CAD 36 DKK 171 0.20657 to 0.21094 - Jan 15, 2021 CAD 97 EUR 62 1.54878 to 1.57008 1 Jan 15, 2021 CAD 24 GBP 14 1.68933 to 1.73819 - Jan 15, 2021 CAD 27 HKD 160 0.16400 to 0.17299 1 Jan 15, 2021 CAD 118 JPY 9,405 0.01235 to 0.01277 2 Jan 15, 2021 CAD 50 SEK 332 0.14942 to 0.15540 (2) Jan 15, 2021 CAD 720 USD 545 1.27135 to 1.32591 25 Jan 15, 2021 CHF 2 CAD 3 0.68720 to 0.69205 - Jan 15, 2021 DKK 39 CAD 8 4.74719 to 4.83908 - Jan 15, 2021 EUR 12 CAD 19 0.63802 to 0.64339 - Jan 15, 2021 GBP 4 CAD 7 0.57407 to 0.58730 - Jan 15, 2021 HKD 37 CAD 6 5.84044 to 6.08333 - Jan 15, 2021 JPY 1,505 CAD 19 79.45369 to 81.41264 - Jan 15, 2021 SEK 61 CAD 9 6.47774 to 6.70185 - Jan 15, 2021 USD 86 CAD 113 0.74850 to 0.78282 (4) $ 23 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; —State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

135 LAZARD GLOBAL COMPOUNDERS FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Portfolio by Industry Exposure DECEMBER 31, 2020 DEC. 31 DEC. 31 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT 2020 (%) 2019 (%) MARKETS FOR OBSERVABLE UNOBSERVABLE Equities IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Aerospace & Defense - 3.4 ($000) ($000) ($000) ($000) Beverages 1.7 2.1 Biotechnology 2.8 1.9 Equities 50,119 21,420 - 71,539 Building Products 1.9 1.5 Total Investments 50,119 21,420 - 71,539 Capital Markets 5.5 6.7 Chemicals 1.9 1.8 Foreign Exchange Commercial Banks 4.8 5.9 Contracts, Net - 23 - 23 Commercial Services & Supplies 2.6 2.3 Diversified Financial Services 2.3 2.3 Electrical Equipment 3.7 3.8 DECEMBER 31, 2019 Electronic Equipment, Instruments & Components 4.5 1.8 QUOTED PRICES SIGNIFICANT Entertainment 2.7 2.2 IN ACTIVE OTHER SIGNIFICANT Food & Staples Retailing 1.2 1.6 MARKETS FOR OBSERVABLE UNOBSERVABLE Health Care Equipment & Supplies 2.5 2.2 IDENTICAL INPUTS INPUTS Health Care Providers & Services 2.1 3.6 ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Hotels, Restaurants & Leisure - 3.2 ($000) ($000) ($000) ($000) Industrial Conglomerates 1.8 1.9 Equities 22,937 9,694 - 32,631 Internet & Direct Marketing Retail 1.6 - Total Investments 22,937 9,694 - 32,631 Insurance 4.5 6.8 Interactive Media & Services 6.4 5.9 Foreign Exchange IT Services 7.2 7.8 Contracts, Net - 15 - 15 Leisure Products 2.3 1.2 Life Sciences Tools & Services - 1.5 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Machinery 4.4 2.1 service provider to provide fair value adjustments, where applicable, to the prices Personal Products 4.4 - Pharmaceuticals 4.2 3.1 of foreign securities due to changes in the value of securities in North American Professional Services 7.1 6.9 markets following the closure of the foreign markets. The parameters used to Semiconductors & Semiconductor Equipment 3.0 2.0 apply the fair value adjustments are based on observable market data, and as Software 6.2 5.8 such, the foreign securities are considered Level 2 priced securities. Specialty Retail 3.5 3.8 Total investments 96.8 95.1 During the year ended December 31, 2020, $1.3 million were transferred from Foreign exchange contracts, net - - Level 2 to Level 1. During the year ended December 31, 2019, $0.5 million were Total financial instruments at fair value 96.8 95.1 transferred from Level 2 to Level 1. Total other assets less liabilities at cost or amortized cost 3.2 4.9 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 FINANCIAL INSTRUMENTS RISKS The investment objective of the Lazard Global Compounders Fund is to achieve Portfolio by Country Exposure long-term capital appreciation by investing primarily in the equity securities of both Canadian and non-Canadian issuers whose equity market capitalizations DEC. 31 DEC. 31 exceed $1 billion at the time of purchase. 2020 (%) 2019 (%) Equities The Fund uses derivatives such as forward contracts on the portions of the Fund Canada 3.7 4.2 that are attributable to the Hedged Series of units to hedge against currency China 2.1 - risk exposure. Denmark 2.8 1.9 Germany 4.3 1.8 Hong Kong 1.6 1.8 Market Price Risk India 3.0 3.7 As at December 31, 2020, if the Fund’s benchmark (MSCI All Country World Ireland 4.0 4.4 Israel 0.8 0.8 Index) increased or decreased by 10%, with all other variables held constant, the Japan 10.1 6.5 net assets of the Fund would have increased or decreased, respectively, by Netherlands 1.7 3.4 approximately $7.2 million (December 31, 2019—$3.3 million) or 9.7% South Africa 1.2 2.7 (December 31, 2019—9.5%) of total net assets. This impact is estimated based South Korea 2.2 - on the historical correlation between the return of Series I units of the Fund as Sweden 4.2 3.3 compared to the return of the Fund’s benchmark. In practice, the historical Switzerland 2.0 2.8 correlation may not be representative of the future correlation and, accordingly, Taiwan 3.0 2.0 the impact on net assets could be materially different. United Kingdom 6.4 5.8 United States 43.7 50.0 Total investments 96.8 95.1 Foreign exchange contracts, net - - Total financial instruments at fair value 96.8 95.1 Total other assets less liabilities at cost or amortized cost 3.2 4.9 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0

136 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD GLOBAL COMPOUNDERS FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Foreign Currency Risk DECEMBER 31, 2019 The table below indicates the currencies to which the unhedged series of the Forward Fund had significant exposure on its financial instruments as at December 31, Foreign Currency 2020 and December 31, 2019 in Canadian dollar terms. Contracts outstanding DECEMBER 31, 2020 OTHER NET in Hedged INVESTMENTS CASH OTHER NET TOTAL INVESTMENTS CASH ASSETS Series TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) CURRENCY ($000) ($000) ($000) ($000) ($000) Danish Krone 2,025 - - 2,025 Danish Krone 17 - - (16) 1 Euro 5,742 3 1 5,746 Euro 64 - - (66) (2) Hong Kong Dollar 1,518 - - 1,518 Hong Kong Dollar 16 - - (16) - Japanese Yen 7,352 - 5 7,357 Japanese Yen 59 - - (59) - Pound Sterling 1,279 - - 1,279 Pound Sterling 35 - - (35) - South African Rand 862 - - 862 South African Rand 24 - - - 24 South Korean Won 1,636 1 - 1,637 Swedish Krona 30 - - (29) 1 Swedish Krona 3,083 - - 3,083 Swiss Franc 25 - - (24) 1 Swiss Franc 1,494 - 9 1,503 U.S. Dollar 554 12 - (555) 11 U.S. Dollar 42,853 68 16 42,937 Total 824 12 - (800) 36 Total 67,844 72 31 67,947 % of Net Assets 2.4 - - (2.3) 0.1 % of Net Assets 91.8 0.1 - 91.9 As at December 31, 2020, if the Canadian dollar had strengthened or weakened by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all DECEMBER 31, 2019 other variables held constant, the Fund’s net assets would have decreased or INVESTMENTS CASH OTHER NET TOTAL increased, respectively, by approximately $1.4 million (December 31, CURRENCY ($000) ($000) ASSETS ($000) ($000) 2019—$0.6 million) or 1.9% (December 31, 2019—1.7%) of total net assets. Danish Krone 636 - - 636 The Fund consists of both Unhedged and Hedged Series. Exposure to currency Euro 2,366 6 5 2,377 impact would only affect the Unhedged Series. Approximately 98.6% (December Hong Kong Dollar 591 - - 591 31, 2019—97.4%) of the Fund is invested in the Unhedged Series of units which Japanese Yen 2,175 11 2 2,188 has not been hedged with forward exchange contracts. The remaining 1.4% Pound Sterling 1,292 7 - 1,299 (December 31, 2019—2.6%) of the Fund is invested in the Hedged Series of South African Rand 887 - - 887 Swedish Krona 1,091 - - 1,091 units which has been hedged with forward exchange contracts and therefore is Swiss Franc 926 - 4 930 not subject to significant currency risk. In practice, the actual results may differ U.S. Dollar 20,394 446 6 20,846 from this sensitivity analysis and the difference could be material. Total 30,358 470 17 30,845 % of Net Assets 88.5 1.4 - 89.9 Interest Rate Risk The substantial majority of the Fund’s financial assets are equity shares which do The following table summarizes the foreign currency risk associated with the not pay interest. As a result, the Fund is not subject to significant amounts of risk hedged series which is offset by Forward Foreign Currency Contracts. due to fluctuations in the prevailing levels of market interest rate.

DECEMBER 31, 2020 Forward Credit Risk Foreign The Fund enters into foreign exchange contracts to buy and sell currencies for the Currency purpose of settling foreign securities transactions. These are short term spot Contracts outstanding settlements carried out with approved counterparties. The exposure to credit risk OTHER NET in Hedged on these contracts is considered minimal as the transactions are settled and paid INVESTMENTS CASH ASSETS Series TOTAL for upon delivery. CURRENCY ($000) ($000) ($000) ($000) ($000) Danish Krone 28 - - (27) 1 For the Hedged series, the Fund uses forward contracts to hedge the foreign Euro 81 - - (77) 4 currency exposure on that portion of the Fund associated with the Hedged Series Hong Kong Dollar 21 - - (20) 1 of units. All of these contracts are with an approved counterparty. Japanese Yen 103 - - (98) 5 Pound Sterling 18 - - (18) - South African Rand 12 - - - 12 South Korean Won 23 - - - 23 SECURITIES LENDING Swedish Krona 43 - - (42) 1 The aggregate market value of all securities loaned by a fund cannot exceed 50% Swiss Franc 21 - - (20) 1 of the net assets of the applicable Fund. The Funds receive collateral of at least U.S. Dollar 601 1 - (585) 17 102% of the value of the securities on loan. Collateral may comprise of obligations Total 951 1 - (887) 65 of or guaranteed by the Government of Canada, or a province thereof, or by the % of Net Assets 1.3 - - (1.2) 0.1 United States government or its agencies. As at December 31, 2020 and 2019 the fair value of securities on loan and collateral received was $Nil.

The notes at the back of this document are an integral part of these ﬁnancial statements. 137 LAZARD GLOBAL COMPOUNDERS FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 29 (6) - 23 Payable for open foreign currency spot or exchange contracts (6) 6 - -

DECEMBER 31, 2019 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts 17 (2) - 15 Payable for open foreign currency spot or exchange contracts (2) 2 - -

138 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD INTERNATIONAL COMPOUNDERS FUND STATEMENT OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020

ASSETS CURRENT ASSETS Investments $ 10,454 Cash 455 Receivable for redeemable unit subscriptions 28 Dividends and accrued interest receivable 6 10,943

LIABILITIES CURRENT LIABILITIES Payable for securities purchased 210 Payable for redeemable unit redemptions 14 Payable for open foreign currency spot or forward contracts 1 225

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 10,718 Cost of investments 9,516

Net assets attributable to holders of redeemable units, Series A $ 1,507 Number of redeemable units outstanding, Series A 130 Net assets attributable to holders of redeemable units per unit, Series A 11.56 Net assets attributable to holders of redeemable units per unit, Series A (USD) 9.08

Net assets attributable to holders of redeemable units, Series F $ 6,873 Number of redeemable units outstanding, Series F 591 Net assets attributable to holders of redeemable units per unit, Series F 11.63 Net assets attributable to holders of redeemable units per unit, Series F (USD) 9.13

Net assets attributable to holders of redeemable units, Series I $ 2,338 Number of redeemable units outstanding, Series I 200 Net assets attributable to holders of redeemable units per unit, Series I 11.67

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

139 LAZARD INTERNATIONAL COMPOUNDERS FUND STATEMENT OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the period ended December 31, 2020

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 31 Management Fee Rebates income 3 Net realized gain (loss) on sale of investments 12 Net change in unrealized appreciation (depreciation) of investments 938 Net gain (loss) on investments 984

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (19) Net change in unrealized appreciation (depreciation) of foreign exchange contracts (1) Net gain (loss) on derivatives (20)

Net realized gain (loss) on foreign currencies 14 Total net income (loss) 978

EXPENSES (note 6) Management fees 20 Audit 1 Custody and fund accounting 7 Administration and transfer agent fees 8 Foreign withholding taxes 4 Transaction costs (note 3) 12 52 Expenses absorbed (11) Total expenses net of absorption 41

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 111 Series F 487 Series I 339 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 937

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 1.56 Series F 1.63 Series I 1.69

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

140 LAZARD INTERNATIONAL COMPOUNDERS FUND STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 111 487 339 937

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (2) - (2) Distribution from net realized gains on portfolio investments (1) (2) (4) (7) (1) (4) (4) (9)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 1,396 6,438 1,999 9,833 Reinvested distributions to holders of redeemable units 1 4 4 9 Payments for redeemable units redeemed - (52) - (52) 1,397 6,390 2,003 9,790

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE PERIOD 1,507 6,873 2,338 10,718

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF PERIOD $ 1,507 $ 6,873 $ 2,338 $ 10,718

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of period - - - Redeemable units issued for cash 130,240 595,295 199,940 Redeemable units issued for reinvested distributions 135 324 324 Redeemable units redeemed - (4,642) - BALANCE, END OF PERIOD 130,375 590,977 200,264

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

141 LAZARD INTERNATIONAL COMPOUNDERS FUND STATEMENT OF CASH FLOWS

Amounts in thousands For the period ended December 31, 2020

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 937

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (12) Unrealized (appreciation) depreciation on foreign cash 1 Net change in unrealized (appreciation) depreciation of investments (938) Net change in unrealized (appreciation) depreciation of foreign exchange contracts 1 Purchase of investments (9,446) Proceeds from sale of investments 152 (9,305)

CHANGE IN NON-CASH WORKING CAPITAL (6)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 9,805 Amounts paid on redemption of redeemable units (38) 9,767 NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH (1)

NET INCREASE (DECREASE) IN CASH 455

CASH—BEGINNING OF PERIOD -

CASH—END OF PERIOD 455

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 21

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

142 LAZARD INTERNATIONAL COMPOUNDERS FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Aerospace & Defense Semiconductors & Semiconductor Equipment 8,288 CAE Inc. $ 198 $ 292 2.7 620 ASML Holding NV $ 325 $ 382 3.5 3,989 Taiwan Semiconductor Manufacturing Beverages Company, Ltd. ADR 423 554 5.2 5,001 Diageo PLC 234 252 2.4 748 936 8.7

Biotechnology Software 672 Genmab A/S 321 347 3.2 1,106 Check Point Software Technologies, Ltd. 176 187 1.8 1,377 SAP SE 258 227 2.1 Building Products 434 414 3.9 8,172 ASSA ABLOY AB Series B 246 257 2.4 272 Geberit AG 203 217 2.0 Specialty Retail 449 474 4.4 3,882 Dollarama Inc. 191 201 1.9 3,268 Industria de Diseno Textil, SA 122 132 1.2 Capital Markets 1,700 Workman Co., Ltd. 203 185 1.7 1,847 London Stock Exchange Group PLC 272 290 2.7 516 518 4.8 240 Partners Group Holding AG 315 359 3.4 587 649 6.1 Textiles, Apparel & Luxury Goods 393 LVMH Moet Hennessy Louis Vuitton SE 256 313 2.9 Chemicals 1,375 Symrise AG 232 233 2.2 Total Investments 9,516 10,454 97.5 Commercial Banks 4,329 HDFC Bank Limited ADR 315 399 3.7 Foreign Exchange Contracts (a) (1) - 2,655 National Bank of Canada 175 190 1.8 Other Assets Less Liabilities 265 2.5 490 589 5.5 Net Assets Attributable to Holders of Redeemable Units 10,718 100.0 Electrical Equipment 1,847 Legrand SA 199 210 2.0 (a) Foreign Exchange Contracts Electronic Equipment, Instruments & Components SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED 2,245 Hexagon AB Series B 212 262 2.4 DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Entertainment Jan 4, 2021 DKK 217 CAD 46 4.74106 $ (1) 3,900 Toei Animation Co., Ltd. 304 390 3.6 Jan 4, 2021 HKD 255 CAD 42 6.06002 - Jan 4, 2021 JPY 5,213 CAD 64 80.99900 - Food & Staples Retailing Jan 4, 2021 NOK 74 CAD 11 6.71498 - 10,613 Clicks Group, Ltd. 198 232 2.2 Jan 4, 2021 SEK 209 CAD 33 6.41103 - Jan 4, 2021 ZAR 171 CAD 15 11.44806 - Health Care Equipment & Supplies $ (1) 872 Coloplast A/S Series B 182 170 1.6 4,356 Demant A/S 182 219 2.0 Notes: Counterparty—State Street Bank and Trust Co.; Rating AA-; Source—Standard & 364 389 3.6 Poor's Credit Rating Agency

Household Products 2,900 PIGEON Corporation 165 152 1.4

Insurance 16,000 AIA Group Limited 216 248 2.3 1,106 Aon PLC Cl. A 292 298 2.8 6,192 Gjensidige Forsikring ASA 168 176 1.7 6,120 Prudential PLC 127 143 1.3 803 865 8.1

Interactive Media & Services 2,838 Scout24 AG 315 295 2.7 4,300 Tencent Holdings Limited 402 394 3.7 717 689 6.4

Internet & Direct Marketing Retail 1,078 Alibaba Group Holding Limited ADR 380 319 3.0

Leisure Products 5,195 Shimano Inc. ADR 149 156 1.5

Machinery 221 Rational AG 203 262 2.4 3,586 Toromont Industries, Ltd. 279 320 3.0 482 582 5.4

Pharmaceuticals 2,879 Dechra Pharmaceuticals PLC 157 173 1.6

Professional Services 1,891 Intertek Group PLC 186 186 1.7 7,927 RELX PLC 240 247 2.3 8,100 SMS Co., Ltd. 302 395 3.7 1,765 Wolters Kluwer NV 193 190 1.8 921 1,018 9.5

143 LAZARD INTERNATIONAL COMPOUNDERS FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FAIR VALUE MEASUREMENTS Essentially all of the assets and liabilities of the Fund are ﬁnancial instruments. Below is a summary of the inputs used as at December 31, 2020 in valuing the These ﬁnancial instruments comprise the following: Fund’s investments carried at fair values.

Portfolio by Industry Exposure DECEMBER 31, 2020 DEC. 31 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT 2020 (%) MARKETS FOR OBSERVABLE UNOBSERVABLE Equities IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Aerospace & Defense 2.7 ($000) ($000) ($000) ($000) Beverages 2.4 Biotechnology 3.2 Equities 3,600 6,854 - 10,454 Building Products 4.4 Total Investments 3,600 6,854 - 10,454 Capital Markets 6.1 Chemicals 2.2 Foreign Exchange Commercial Banks 5.5 Contracts, Net - (1) - (1) Electrical Equipment 2.0 Electronic Equipment, Instruments & Components 2.4 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Entertainment 3.6 service provider to provide fair value adjustments, where applicable, to the prices Food & Staples Retailing 2.2 of foreign securities due to changes in the value of securities in North American Health Care Equipment & Supplies 3.6 Household Products 1.4 markets following the closure of the foreign markets. The parameters used to Insurance 8.1 apply the fair value adjustments are based on observable market data, and as Interactive Media & Services 6.4 such, the foreign securities are considered Level 2 priced securities. Internet & Direct Marketing Retail 3.0 Leisure Products 1.5 During the period ended December 31, 2020, there were no significant transfers Machinery 5.4 between Level 1 and 2. Pharmaceuticals 1.6 Professional Services 9.5 Semiconductors & Semiconductor Equipment 8.7 Software 3.9 FINANCIAL INSTRUMENTS RISKS Specialty Retail 4.8 The investment objective of the Lazard International Compounders Fund is to Textiles, Apparel & Luxury Goods 2.9 achieve long-term capital appreciation by investing primarily in the equity Total investments 97.5 securities of non-U.S. issuers, including those from emerging markets. The Fund Foreign exchange contracts, net - invests solely in what Lazard calls "Compounders", the world's leading companies Total financial instruments at fair value 97.5 that can generate, and sustain, the highest levels of financial productivity (i.e. Total other assets less liabilities at cost or amortized cost 2.5 return on equity, return on capital, and cashflow return on investment). Total Net Assets Attributable to Holders of Redeemable Units 100.0 Market Price Risk As at December 31, 2020, if the Fund’s benchmark (MSCI All Country World ex- Portfolio by Country Exposure U.S. Index) increased or decreased by 10%, with all other variables held DEC. 31 constant, the net assets of the Fund would have increased or decreased, 2020 (%) respectively, by approximately $1.0 million or 9.8% of total net assets. This Equities impact is estimated based on the historical correlation between the return of Canada 9.4 Series I units of the Fund as compared to the return of the Fund’s benchmark. In China 3.7 practice, the historical correlation may not be representative of the future Denmark 6.8 correlation and, accordingly, the impact on net assets could be France 4.9 materially different. Germany 9.4 Hong Kong 5.3 India 3.7 Foreign Currency Risk Israel 1.8 The tables below indicate the currencies to which the Fund had significant Japan 11.9 Netherlands 5.3 exposure on its financial instruments as at December 31, 2020 in Canadian dollar Norway 1.7 terms, including the underlying principal of forward exchange contracts, if any. South Africa 2.2 Spain 1.2 DECEMBER 31, 2020 Sweden 4.8 INVESTMENTS CASH OTHER NET TOTAL Switzerland 5.4 CURRENCY ($000) ($000) ASSETS ($000) ($000) Taiwan 5.2 Danish Krone 736 - - 736 United Kingdom 14.8 Euro 2,490 - - 2,490 Total investments 97.5 Hong Kong Dollar 642 - - 642 Foreign exchange contracts, net - Japanese Yen 1,122 - 1 1,123 Norwegian Krone 176 - 1 177 Total financial instruments at fair value 97.5 Pound Sterling 1,044 - - 1,044 Total other assets less liabilities at cost or amortized cost 2.5 South African Rand 232 - - 232 Total Net Assets Attributable to Holders of Redeemable Units 100.0 Swedish Krona 520 - - 520 Swiss Franc 576 - - 576 U.S. Dollar 1,912 688 2 2,602 Total 9,450 688 4 10,142 % of Net Assets 88.2 6.4 - 94.6

As at December 31, 2020, if the Canadian dollar had strengthened or weakened by 2% in relation to all foreign currencies, with all other variables held constant, the Fund’s net assets would have decreased or increased, respectively, by approximately $0.2 million or 1.9% of total net assets. In practice, the actual results may differ from this sensitivity analysis and the difference could be material.

144 The notes at the back of this document are an integral part of these ﬁnancial statements. LAZARD INTERNATIONAL COMPOUNDERS FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

OFFSETTING OF FINANCIAL INSTRUMENTS The fund enters into various master netting agreements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. The following table presents ﬁnancial instruments that are offset, or subject to enforceable master netting agreements or other similar agreements but that are not offset, as at December 31, 2020. The ‘Net’ column shows what the impact on the Fund’s Statements of Financial Position would be if all set-off rights were exercised.

DECEMBER 31, 2020 AMOUNTS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION AMOUNTS ELIGIBLE FOR OFFSET NET FINANCIAL ASSETS GROSS ASSETS/ FINANCIAL CASH AND LIABILITIES LIABILITIES INSTRUMENTS COLLATERAL Receivable for open foreign currency spot or exchange contracts - - - - Payable for open foreign currency spot or exchange contracts (1) - - (1)

The notes at the back of this document are an integral part of these ﬁnancial statements. 145 MORNINGSTAR AGGRESSIVE PORTFOLIO STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 3,020 $ 5,554 Cash 42 85 Receivable for redeemable unit subscriptions 1 8 Income distribution receivable from underlying funds 8 30 3,071 5,677

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 1 1 1 1

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 3,070 $ 5,676 Cost of investments 2,766 5,342

Net assets attributable to holders of redeemable units, Series A $ 1,680 $ 2,182 Number of redeemable units outstanding, Series A 146 202 Net assets attributable to holders of redeemable units per unit, Series A 11.51 10.78

Net assets attributable to holders of redeemable units, Series F $ 1,193 $ 3,314 Number of redeemable units outstanding, Series F 99 297 Net assets attributable to holders of redeemable units per unit, Series F 12.03 11.15

Net assets attributable to holders of redeemable units, Series I $ 197 $ 180 Number of redeemable units outstanding, Series I 17 17 Net assets attributable to holders of redeemable units per unit, Series I 11.55 10.70

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

146 MORNINGSTAR AGGRESSIVE PORTFOLIO STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Income distributions received from underlying funds $ 108 $ 134 Management Fee Rebates income 1 1 Net realized gain (loss) on sale of investments (216) 90 Capital gains distributions received from underlying funds 24 36 Net change in unrealized appreciation (depreciation) of investments 42 704 Net gain (loss) on investments (41) 965

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (1) (1) Net gain (loss) on derivatives (1) (1)

Net realized gain (loss) on foreign currencies (1) 2 Total net income (loss) (43) 966

EXPENSES (note 6) Management fees 55 72 Audit 1 1 Custody and fund accounting 5 5 Filing fees 19 19 Unitholder reporting - 1 Administration and transfer agent fees 8 11 Foreign withholding taxes 4 4 Transaction costs (note 3) 4 5 96 118 Expenses absorbed (25) (26) Total expenses net of absorption 71 92

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 78 $ 290 Series F (209) 555 Series I 17 29 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (114) 874

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.46 $ 1.41 Series F (1.16) 1.96 Series I 0.99 1.75

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

147 MORNINGSTAR AGGRESSIVE PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 78 290 (209) 555 17 29

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - - (2) (3) (3) (3) - - (2) (3) (3) (3)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 274 1,441 688 2,477 1 - Reinvested distributions to holders of redeemable units - - 3 3 2 3 Net proceeds/(payments) from/for redeemable units transferred in/(out) (1) (85) 1 85 - - Payments for redeemable units redeemed (853) (1,122) (2,602) (4,140) - - (580) 234 (1,910) (1,575) 3 3

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (502) 524 (2,121) (1,023) 17 29

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 1,680 $ 2,182 $ 1,193 $ 3,314 $ 197 $ 180

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 202,386 179,112 297,249 457,962 16,776 16,495 Redeemable units issued for cash 27,336 141,327 62,256 228,616 100 - Redeemable units issued for reinvested distributions 20 23 150 256 201 281 Net redeemable units transferred in/(out) (114) (8,268) 110 8,050 - - Redeemable units redeemed (83,674) (109,808) (260,593) (397,635) - - BALANCE, END OF YEAR 145,954 202,386 99,172 297,249 17,077 16,776

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 5,676 $ 6,146

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (114) 874

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (5) (6) (5) (6)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 963 3,918 Reinvested distributions to holders of redeemable units 5 6 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (3,455) (5,262) (2,487) (1,338)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (2,606) (470)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 3,070 $ 5,676

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

148 MORNINGSTAR AGGRESSIVE PORTFOLIO STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (114) $ 874

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 216 (90) Net change in unrealized (appreciation) depreciation of investments (42) (704) Reinvested distributions from underlying funds (64) (183) Purchase of investments (1,890) (2,569) Proceeds from sale of investments 4,314 3,766 2,420 1,094

CHANGE IN NON-CASH WORKING CAPITAL 22 (24)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 970 3,940 Amounts paid on redemption of redeemable units (3,455) (5,261) (2,485) (1,321)

NET INCREASE (DECREASE) IN CASH (43) (251)

CASH—BEGINNING OF YEAR 85 336

CASH—END OF YEAR 42 85

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 33 29

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

149 MORNINGSTAR AGGRESSIVE PORTFOLIO

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units)

NUMBER OF AVERAGE FAIR % OF NET SHARES/UNITS SECURITY COST VALUE ASSETS EQUITIES Canadian—Exchange-Traded Funds 4,493 Vanguard FTSE Canada Index ETF $ 154 $ 166 5.4

Canadian—Mutual Funds 1,017 Franklin Bissett Canadian Equity Fund Series O 156 160 5.2 8,391 Mackenzie Ivy Canadian Fund Series O 153 153 5.0 8,177 Pender Value Fund Class O 122 158 5.1 431 471 15.3

Canadian—Pooled Funds 12,281 Galibier Canadian Equity Pool Fund 181 191 6.2

Global—Exchange-Traded Funds 3,131 iShares Global Energy ETF 82 81 2.7 890 iShares MSCI EAFE Value ETF 50 53 1.7 2,360 iShares MSCI Europe Financials ETF 47 53 1.7 937 iShares MSCI Germany ETF 32 38 1.2 832 iShares MSCI Mexico ETF 37 46 1.5 294 iShares MSCI South Korea ETF 21 32 1.1 2,441 iShares MSCI United Kingdom ETF 97 91 3.0 3,903 JPMorgan BetaBuilders Japan ETF 122 139 4.5 1,720 Schwab Fundamental Emerging Markets Large Company Index ETF 62 62 2.0 550 595 19.4

Global—Mutual Funds 6,642 Black Creek International Equity Fund Class I 141 133 4.3 14,859 Canoe Defensive International Equity Fund Series OX 185 165 5.4 6,271 Capital Group Global Equity Fund (Canada) Series I 232 315 10.3 10,753 CC&L Global Alpha Fund Series I 118 126 4.1 676 739 24.1

Global—Pooled Funds 4,310 Invesco Select Emerging Markets Pool Series I 63 77 2.5

United States—Exchange-Traded Funds 2,106 Global X MLP & Energy Infrastructure ETF 84 72 2.4 127 Vanguard Consumer Staples ETF 25 28 0.9 834 Vanguard Financials ETF 63 77 2.5 591 Vanguard Mid-Cap Value ETF 76 90 2.9 614 Vanguard S&P 500 Index ETF (CAD-hedged) 35 39 1.3 283 306 10.0

United States—Mutual Funds 11,291 Beutel Goodman American Equity Fund Class I 199 202 6.6 1,145 TD U.S. Blue Chip Equity Fund Series O 60 85 2.8 1,561 TD U.S. Mid-Cap Growth Fund Series O 62 78 2.5 321 365 11.9

Total Equities 2,659 2,910 94.8

Fixed Income Canadian—Mutual Funds 4,742 Leith Wheeler Core Bond Fund Series A 53 54 1.8 4,801 TD Canadian Bond Fund Series O 54 56 1.8 107 110 3.6

Total Investments 2,766 3,020 98.4 Other Assets Less Liabilities 50 1.6 Net Assets Attributable to Holders of Redeemable Units 3,070 100.0

150 MORNINGSTAR AGGRESSIVE PORTFOLIO

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Market Price Risk Essentially all of the assets and liabilities of the Fund are financial instruments. As at December 31, 2020, if the Fund’s benchmark (67% MSCI All Country World These financial instruments comprise the following: ex-Canada Index, 28% S&P/TSX Capped Composite Index, 3% FTSE Canada Universe Bond Index, 2% FTSE Canada 91 Day T-Bill Index) increased or Portfolio by Industry Exposure decreased by 10%, with all other variables held constant, the net assets of the DEC. 31 DEC. 31 Fund would have increased or decreased, respectively, by approximately $0.3 2020 (%) 2019 (%) million (December 31, 2019—$0.6 million), or 9.8% (December 31, Exchange-Traded Funds—Canadian Equities 5.4 5.4 2019—9.8%) of total net assets. In practice, the actual results may differ from Exchange-Traded Funds—Global Equities 19.4 8.8 this sensitivity analysis and the difference could be material. Exchange-Traded Funds—U.S. Equities 10.0 8.4 Mutual Funds—Canadian Bonds 3.6 7.0 Mutual Funds—Canadian Equities 15.3 16.3 Foreign Currency Risk Mutual Funds—Global Equities 24.1 34.0 The tables below indicate the currencies to which the Fund had significant Mutual Funds—U.S. Equities 11.9 7.2 exposure on its financial instruments as at December 31, 2020 and December Pooled Funds—Canadian Equities 6.2 7.0 31, 2019 in Canadian dollar terms, including the underlying principal of forward Pooled Funds—Global Equities 2.5 3.8 exchange contracts, if any. The Fund may also have indirect foreign currency risk Total financial instruments at fair value 98.4 97.9 through its investments in underlying funds. Total other assets less liabilities at cost or amortized cost 1.6 2.1 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 DECEMBER 31, 2020 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Portfolio by Country Exposure U.S. Dollar 863 2 - 865 DEC. 31 DEC. 31 Total 863 2 - 865 2020 (%) 2019 (%) % of Net Assets 28.1 0.1 - 28.2 Country Canada—Exchange-Traded Funds 5.4 5.4 Canada—Mutual Funds 18.9 23.3 DECEMBER 31, 2019 Canada—Pooled Funds 6.2 7.0 INVESTMENTS CASH OTHER NET TOTAL Global—Exchange-Traded Funds 19.4 8.8 CURRENCY ($000) ($000) ASSETS ($000) ($000) Global—Mutual Funds 24.1 34.0 U.S. Dollar 923 - - 923 Global—Pooled Funds 2.5 3.8 U.S.—Exchange-Traded Funds 10.0 8.4 Total 923 - - 923 U.S.—Mutual Funds 11.9 7.2 % of Net Assets 16.3 - - 16.3 Total financial instruments at fair value 98.4 97.9 Total other assets less liabilities at cost or amortized cost 1.6 2.1 As at December 31, 2020, if the Canadian dollar had strengthened or weakened Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all other variables held constant, the Fund’s net assets would have decreased or increased, respectively, by approximately $0.02 million (December 31, 2019—$0.0 million), or 0.6% (December 31, 2019—0.3%) of total net assets. In FAIR VALUE MEASUREMENTS practice, the actual results may differ from this sensitivity analysis and the Below is a summary of the inputs used as at December 31, 2020 and December difference could be material. 31, 2019 in valuing the Fund’s investments carried at fair values.

DECEMBER 31, 2020 Interest Rate Risk QUOTED PRICES SIGNIFICANT The majority of the Fund’s assets and liabilities were non-interest bearing as at IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE December 31, 2020 and December 31, 2019. However, the Fund may be IDENTICAL INPUTS INPUTS exposed to indirect interest rate risk in the event that an Underlying Fund holds ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL interest-bearing ﬁnancial instruments. ($000) ($000) ($000) ($000) Mutual Funds 1,685 - - 1,685 Pooled Funds 268 - - 268 Credit Risk Exchange-Traded The Fund had no signiﬁcant direct investments in debt securities or derivatives as Funds 1,067 - - 1,067 at December 31, 2020 and December 31, 2019. However, the Fund may be Total Investments 3,020 - - 3,020 exposed to indirect credit risk in the event that an Underlying Fund holds debt instruments or derivatives. The Fund enters into foreign exchange contracts to buy and sell currencies for the purpose of settling foreign securities transactions. DECEMBER 31, 2019 These are short term spot settlements carried out with approved counterparties. QUOTED PRICES SIGNIFICANT The exposure to credit risk on these contracts is considered minimal as the IN ACTIVE OTHER SIGNIFICANT transactions are settled and paid for upon delivery. MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) OFFSETTING OF FINANCIAL INSTRUMENTS Mutual Funds 3,656 - - 3,656 The Fund does not enter into any enforceable master netting arrangement. Pooled Funds 610 - - 610 Exchange-Traded Funds 1,288 - - 1,288 Total Investments 5,554 - - 5,554

FINANCIAL INSTRUMENTS RISKS The fundamental investment objective of the Morningstar Aggressive Portfolio is to achieve long-term capital appreciation by investing primarily in a diverse mix of other mutual funds and exchange traded funds that invest in Canadian and global equity securities with limited exposure to ﬁxed income securities.

The notes at the back of this document are an integral part of these ﬁnancial statements. 151 MORNINGSTAR AGGRESSIVE PORTFOLIO

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF NET ASSETS OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % UNDERLYING AND PRINCIPAL AS AT AS AT FUND % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME ($000) NET ASSETS BUSINESS 2020 2019 Beutel Goodman American Equity Fund Class I 1,771,765 6.6 Canada 0.01 0.02 Black Creek International Equity Fund Class I 1,097,293 4.3 Canada 0.01 0.03 Canoe Defensive International Equity Fund Series OX 397,038 5.4 Canada 0.04 - Capital Group Global Equity Fund (Canada) Series I 11,148,486 10.3 Canada - 0.01 CC&L Global Alpha Fund Series I 36,681 4.1 Canada 0.34 0.48 Franklin Bissett Canadian Equity Fund Series O 2,629,824 5.2 Canada 0.01 0.01 Galibier Canadian Equity Pool Fund 718,484 6.2 Canada 0.03 0.11 Global X MLP & Energy Infrastructure ETF 726,224 2.4 United States 0.01 0.01 Invesco Select Emerging Markets Pool Series I 69,872 2.5 Canada 0.11 0.27 iShares Global Energy ETF 1,269,763 2.7 United States 0.01 - iShares MSCI EAFE Value ETF 9,196,973 1.7 United States - - iShares MSCI Europe Financials ETF 1,323,752 1.7 United States - - iShares MSCI Germany ETF 3,292,790 1.2 United States - - iShares MSCI Mexico ETF 1,655,435 1.5 United States - - iShares MSCI South Korea ETF 9,297,481 1.1 United States - - iShares MSCI United Kingdom ETF 3,650,324 3.0 United States - - JPMorgan BetaBuilders Japan ETF 7,996,555 4.5 United States - - Leith Wheeler Core Bond Fund Series A 186,796 1.8 Canada 0.03 0.09 Mackenzie Ivy Canadian Fund Series O 721,182 5.0 Canada 0.02 0.03 Pender Value Fund Class O 280,790 5.1 Canada 0.06 0.09 Schwab Fundamental Emerging Markets Large Company Index ETF 4,596,477 2.0 United States - - TD Canadian Bond Fund Series O 15,699,892 1.8 Canada - 0.02 TD U.S. Blue Chip Equity Fund Series O 9,910,670 2.8 Canada - 0.01 TD U.S. Mid-Cap Growth Fund Series O 3,124,439 2.5 Canada - - Vanguard Consumer Staples ETF 8,363,917 0.9 United States - - Vanguard Financials ETF 9,861,510 2.5 United States - - Vanguard FTSE Canada Index ETF 748,785 5.4 Canada 0.02 0.05 Vanguard Mid-Cap Value ETF 26,992,043 2.9 United States - - Vanguard S&P 500 Index ETF (CAD-hedged) 3,684,627 1.3 Canada - -

152 The notes at the back of this document are an integral part of these ﬁnancial statements. MORNINGSTAR BALANCED PORTFOLIO STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 82,858 $ 85,439 Cash 1,646 2,032 Receivable for redeemable unit subscriptions 113 349 Income distribution receivable from underlying funds 146 233 84,763 88,053

LIABILITIES CURRENT LIABILITIES Payable for securities purchased - 180 Payable for redeemable unit redemptions 72 232 72 412

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 84,691 $ 87,641 Cost of investments 76,837 82,371

Net assets attributable to holders of redeemable units, Series A $ 37,139 $ 40,338 Number of redeemable units outstanding, Series A 3,285 3,815 Net assets attributable to holders of redeemable units per unit, Series A 11.30 10.57

Net assets attributable to holders of redeemable units, Series F $ 25,018 $ 25,749 Number of redeemable units outstanding, Series F 2,195 2,413 Net assets attributable to holders of redeemable units per unit, Series F 11.40 10.67

Net assets attributable to holders of redeemable units, Series I $ 22,534 $ 21,554 Number of redeemable units outstanding, Series I 2,003 2,049 Net assets attributable to holders of redeemable units per unit, Series I 11.25 10.52

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

153 MORNINGSTAR BALANCED PORTFOLIO STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ 1 $ 6 Income distributions received from underlying funds 2,394 2,488 Management Fee Rebates income 18 14 Net realized gain (loss) on sale of investments 1,142 275 Capital gains distributions received from underlying funds 684 227 Net change in unrealized appreciation (depreciation) of investments 2,952 7,421 Net gain (loss) on investments 7,191 10,431

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (2) - Net gain (loss) on derivatives (2) -

Net realized gain (loss) on foreign currencies (31) 14 Total net income (loss) 7,158 10,445

EXPENSES (note 6) Management fees 933 932 Legal - 1 Audit 9 7 Independent review committee 3 3 Custody and fund accounting 27 21 Filing fees 17 20 Unitholder reporting 4 4 Administration and transfer agent fees 106 101 Foreign withholding taxes 62 52 Transaction costs (note 3) 60 38 1,221 1,179 Expenses absorbed (27) (19) Total expenses net of absorption 1,194 1,160

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 2,220 $ 3,812 Series F 1,791 2,891 Series I 1,953 2,582 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 5,964 9,285

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.63 $ 1.06 Series F 0.77 1.21 Series I 1.00 1.31

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

154 MORNINGSTAR BALANCED PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 2,220 3,812 1,791 2,891 1,953 2,582

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (40) (167) (321) (389) (464) (515) Distribution from net realized gains on portfolio investments - - - - (31) (50) (40) (167) (321) (389) (495) (565)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 6,315 13,475 5,366 9,586 1,523 2,972 Reinvested distributions to holders of redeemable units 40 164 270 335 496 565 Net proceeds/(payments) from/for redeemable units transferred in/(out) (285) (573) 285 573 - - Payments for redeemable units redeemed (11,449) (6,942) (8,122) (8,794) (2,497) (2,026) (5,379) 6,124 (2,201) 1,700 (478) 1,511

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (3,199) 9,769 (731) 4,202 980 3,528

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 37,139 $ 40,338 $ 25,018 $ 25,749 $ 22,534 $ 21,554

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 3,814,541 3,211,939 2,413,495 2,244,701 2,049,386 1,903,196 Redeemable units issued for cash 599,753 1,321,551 502,043 931,584 145,749 290,436 Redeemable units issued for reinvested distributions 3,534 15,521 23,759 31,337 44,019 53,500 Net redeemable units transferred in/(out) (28,582) (55,701) 27,490 54,752 - - Redeemable units redeemed (1,103,832) (678,769) (772,027) (848,879) (235,762) (197,746) BALANCE, END OF YEAR 3,285,414 3,814,541 2,194,760 2,413,495 2,003,392 2,049,386

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 87,641 $ 70,142

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 5,964 9,285

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (825) (1,071) Distribution from net realized gains on portfolio investments (31) (50) (856) (1,121)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 13,204 26,033 Reinvested distributions to holders of redeemable units 806 1,064 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (22,068) (17,762) (8,058) 9,335

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (2,950) 17,499

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 84,691 $ 87,641

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

155 MORNINGSTAR BALANCED PORTFOLIO STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 5,964 $ 9,285

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (1,142) (275) Net change in unrealized (appreciation) depreciation of investments (2,952) (7,421) Reinvested distributions from underlying funds (1,938) (1,984) Purchase of investments (36,503) (31,418) Proceeds from sale of investments 44,936 22,929 8,365 (8,884)

CHANGE IN NON-CASH WORKING CAPITAL 87 (153)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 13,440 26,085 Distributions to holders of redeemable units (50) (57) Amounts paid on redemption of redeemable units (22,228) (17,586) (8,838) 8,442

NET INCREASE (DECREASE) IN CASH (386) (595)

CASH—BEGINNING OF YEAR 2,032 2,627

CASH—END OF YEAR 1,646 2,032

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 852 1,068 Interest 1 6

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

156 MORNINGSTAR BALANCED PORTFOLIO

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units)

Canadian—Pooled Funds FIXED INCOME 201,436 Galibier Canadian Equity Pool Fund 2,839 3,139 3.7 Canadian—Exchange-Traded Funds 265,864 BMO Aggregate Bond Index ETF 4,165 4,437 5.2 Global—Exchange-Traded Funds 43,538 BMO Real Return Bond Index ETF 770 855 1.0 54,471 iShares Global Energy ETF 1,414 1,409 1.7 13,901 iShares MSCI EAFE Value ETF 771 836 1.0 4,935 5,292 6.2 46,748 iShares MSCI Europe Financials ETF 922 1,044 1.2 20,799 iShares MSCI Germany ETF 712 842 1.0 Canadian—Mutual Funds 15,625 iShares MSCI Mexico ETF 697 855 1.0 462,207 Beutel Goodman Corporate/Provincial 44,504 iShares MSCI United Kingdom ETF 1,786 1,660 2.0 Active Bond Fund Class I 2,499 2,547 3.0 71,125 JPMorgan BetaBuilders Japan ETF 2,167 2,536 3.0 174,779 Beutel Goodman Short Term Bond Fund 47,011 Schwab Fundamental Emerging Markets Class I 1,639 1,686 2.0 Large Company Index ETF 1,688 1,692 2.0 629,711 Leith Wheeler Core Bond Fund Series A 6,804 7,209 8.5 144,409 Leith Wheeler High Yield Bond Fund 1,225 1,269 1.5 10,157 10,874 12.9 599,804 TD Canadian Bond Fund Series O 6,545 6,958 8.2 Global—Mutual Funds 18,712 19,669 23.2 128,172 Black Creek International Equity Fund Class I 2,607 2,564 3.0 Global—Exchange-Traded Funds 309,477 Canoe Defensive International Equity 18,334 iShares J.P. Morgan EM Local Currency Fund Series OX 3,632 3,425 4.0 Bond ETF 1,076 1,057 1.3 115,702 Capital Group Global Equity Fund 7,062 iShares J.P. Morgan USD Emerging (Canada) Series I 4,138 5,811 6.9 Markets Bond ETF 1,044 1,042 1.2 10,377 11,800 13.9 2,120 2,099 2.5

Global—Pooled Funds Global—Mutual Funds 106,021 Invesco Select Emerging Markets Pool 178,099 Pimco Monthly Income Fund Series I 2,512 2,541 3.0 Series I 1,512 1,898 2.2 280,201 Templeton Global Bond Fund Series O 3,388 3,168 3.8 5,900 5,709 6.8 United States—Exchange-Traded Funds 40,315 Global X MLP & Energy Total Fixed Income 31,667 32,769 38.7 Infrastructure ETF 1,534 1,384 1.6 3,699 Vanguard Consumer Staples ETF 706 819 1.0 16,128 Vanguard Financials ETF 1,213 1,496 1.8 6,885 Vanguard Mid-Cap Value ETF 913 1,043 1.2 33,791 Vanguard S&P 500 Index ETF (CAD-hedged) 1,929 2,129 2.5 Total Investments 76,837 82,858 97.8 6,295 6,871 8.1 Other Assets Less Liabilities 1,833 2.2 Net Assets Attributable to Holders of Redeemable Units 84,691 100.0

157 MORNINGSTAR BALANCED PORTFOLIO

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FINANCIAL INSTRUMENTS RISKS Essentially all of the assets and liabilities of the Fund are financial instruments. The fundamental investment objective of the Morningstar Balanced Portfolio is to These financial instruments comprise the following: achieve a combination of long-term capital appreciation and income by investing primarily in a diverse mix of mutual funds and exchange traded funds that invest Portfolio by Industry Exposure in Canadian and global fixed-income and equity securities. DEC. 31 DEC. 31 2020 (%) 2019 (%) Market Price Risk Exchange-Traded Funds—Canadian Bonds 6.2 8.2 As at December 31, 2020, if the Fund’s benchmark (42% MSCI All Country World Exchange-Traded Funds—Canadian Equities 4.4 4.4 Exchange-Traded Funds—Global Bonds 2.5 2.0 ex-Canada Index, 30% FTSE Canada Universe Bond Index, 18% S&P/TSX Exchange-Traded Funds—Global Equities 12.9 6.1 Capped Composite Index, 8% FTSE World Government Bond Index, 2% FTSE Exchange-Traded Funds—U.S. Equities 8.1 7.8 Canada 91 Day T-Bill Index) increased or decreased by 10%, with all other Mutual Funds—Canadian Bonds 23.2 23.4 variables held constant, the net assets of the Fund would have increased or Mutual Funds—Canadian Equities 6.4 7.6 decreased, respectively, by approximately $8.3 million (December 31, Mutual Funds—Global Bonds 6.8 7.5 2019—$8.5 million), or 9.8% (December 31, 2019—9.7%) of total net assets. In Mutual Funds—Global Equities 13.9 18.7 practice, the actual results may differ from this sensitivity analysis and the Mutual Funds—U.S. Equities 7.5 4.4 difference could be material. Pooled Funds—Canadian Equities 3.7 4.2 Pooled Funds—Global Equities 2.2 3.2 Total financial instruments at fair value 97.8 97.5 Foreign Currency Risk Total other assets less liabilities at cost or amortized cost 2.2 2.5 The tables below indicate the currencies to which the Fund had significant Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 exposure on its financial instruments as at December 31, 2020 and December 31, 2019 in Canadian dollar terms, including the underlying principal of forward exchange contracts, if any. The Fund may also have indirect foreign currency risk Portfolio by Country Exposure through its investments in underlying funds. DEC. 31 DEC. 31 2020 (%) 2019 (%) DECEMBER 31, 2020 INVESTMENTS CASH OTHER NET TOTAL Country CURRENCY ($000) ($000) ASSETS ($000) ($000) Canada—Exchange-Traded Funds 10.6 12.6 U.S. Dollar 17,716 32 2 17,750 Canada—Mutual Funds 29.6 31.0 Canada—Pooled Funds 3.7 4.2 Total 17,716 32 2 17,750 Global—Exchange-Traded Funds 15.4 8.1 % of Net Assets 20.9 - - 20.9 Global—Mutual Funds 20.7 26.2 Global—Pooled Funds 2.2 3.2 U.S.—Exchange-Traded Funds 8.1 7.8 U.S.—Mutual Funds 7.5 4.4 DECEMBER 31, 2019 INVESTMENTS CASH OTHER NET TOTAL Total financial instruments at fair value 97.8 97.5 CURRENCY ($000) ($000) ASSETS ($000) ($000) Total other assets less liabilities at cost or amortized cost 2.2 2.5 U.S. Dollar 11,686 2 - 11,688 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Total 11,686 2 - 11,688 % of Net Assets 13.3 - - 13.3 FAIR VALUE MEASUREMENTS As at December 31, 2020, if the Canadian dollar had strengthened or weakened Below is a summary of the inputs used as at December 31, 2020 and December by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all 31, 2019 in valuing the Fund’s investments carried at fair values. other variables held constant, the Fund’s net assets would have decreased or DECEMBER 31, 2020 increased, respectively, by approximately $0.4 million (December 31, QUOTED PRICES SIGNIFICANT 2019—$0.2 million), or 0.4% (December 31, 2019—0.3%) of total net assets. In IN ACTIVE OTHER SIGNIFICANT practice, the actual results may differ from this sensitivity analysis and the MARKETS FOR OBSERVABLE UNOBSERVABLE difference could be material. IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Interest Rate Risk Mutual Funds 48,968 - - 48,968 The majority of the Fund’s assets and liabilities were non-interest bearing as at Pooled Funds 5,037 - - 5,037 December 31, 2020 and December 31, 2019. However, the Fund may be Exchange-Traded Funds 28,853 - - 28,853 exposed to indirect interest rate risk in the event that an Underlying Fund holds interest-bearing financial instruments. Total Investments 82,858 - - 82,858

Credit Risk DECEMBER 31, 2019 The Fund had no signiﬁcant direct investments in debt securities or derivatives as QUOTED PRICES SIGNIFICANT at December 31, 2020 and December 31, 2019. However, the Fund may be IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE exposed to indirect credit risk in the event that an Underlying Fund holds debt IDENTICAL INPUTS INPUTS instruments or derivatives. The Fund enters into foreign exchange contracts to ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL buy and sell currencies for the purpose of settling foreign securities transactions. ($000) ($000) ($000) ($000) These are short term spot settlements carried out with approved counterparties. Mutual Funds 53,992 - - 53,992 The exposure to credit risk on these contracts is considered minimal as the Pooled Funds 6,544 - - 6,544 transactions are settled and paid for upon delivery. Exchange-Traded Funds 24,903 - - 24,903 Total Investments 85,439 - - 85,439 OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement.

158 The notes at the back of this document are an integral part of these ﬁnancial statements. MORNINGSTAR BALANCED PORTFOLIO

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF NET ASSETS OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % UNDERLYING AND PRINCIPAL AS AT AS AT FUND % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME ($000) NET ASSETS BUSINESS 2020 2019 Beutel Goodman American Equity Fund Class I 1,771,765 4.7 Canada 0.23 0.17 Beutel Goodman Corporate/Provincial Active Bond Fund Class I 78,290 3.0 Canada 3.25 4.11 Beutel Goodman Short Term Bond Fund Class I 103,507 2.0 Canada 1.63 1.98 Black Creek International Equity Fund Class I 1,097,293 3.0 Canada 0.23 0.26 BMO Aggregate Bond Index ETF 5,464,396 5.2 Canada 0.08 0.12 BMO Real Return Bond Index ETF 151,226 1.0 Canada 0.57 1.12 Canoe Defensive International Equity Fund Series OX 397,038 4.0 Canada 0.86 - Capital Group Global Equity Fund (Canada) Series I 11,148,486 6.9 Canada 0.05 0.07 Franklin Bissett Canadian Equity Fund Series O 2,629,824 3.2 Canada 0.10 0.10 Galibier Canadian Equity Pool Fund 718,484 3.7 Canada 0.44 1.05 Global X MLP & Energy Infrastructure ETF 726,224 1.6 United States 0.19 0.14 Invesco Select Emerging Markets Pool Series I 69,872 2.2 Canada 2.72 3.57 iShares Global Energy ETF 1,269,763 1.7 United States 0.11 - iShares J.P. Morgan EM Local Currency Bond ETF 677,432 1.3 United States 0.16 0.12 iShares J.P. Morgan USD Emerging Markets Bond ETF 24,496,742 1.2 United States - - iShares MSCI EAFE Value ETF 9,196,973 1.0 United States 0.01 - iShares MSCI Europe Financials ETF 1,323,752 1.2 United States 0.08 - iShares MSCI Germany ETF 3,292,790 1.0 United States 0.03 - iShares MSCI Mexico ETF 1,655,435 1.0 United States 0.05 - iShares MSCI United Kingdom ETF 3,650,324 2.0 United States 0.05 0.04 JPMorgan BetaBuilders Japan ETF 7,996,555 3.0 United States 0.03 0.04 Leith Wheeler Core Bond Fund Series A 186,796 8.5 Canada 3.86 3.75 Leith Wheeler High Yield Bond Fund 6,699 1.5 Canada 18.95 - Mackenzie Ivy Canadian Fund Series O 721,182 3.2 Canada 0.38 0.41 Pimco Monthly Income Fund Series I 20,458,617 3.0 Canada 0.01 0.01 Schwab Fundamental Emerging Markets Large Company Index ETF 4,596,477 2.0 United States 0.04 - TD Canadian Bond Fund Series O 15,699,892 8.2 Canada 0.04 0.64 TD U.S. Blue Chip Equity Fund Series O 9,910,670 1.5 Canada 0.01 0.04 TD U.S. Mid-Cap Growth Fund Series O 3,124,439 1.3 Canada 0.03 - Templeton Global Bond Fund Series O 654,924 3.8 Canada 0.48 0.32 Vanguard Consumer Staples ETF 8,363,917 1.0 United States 0.01 0.02 Vanguard Financials ETF 9,861,510 1.8 United States 0.02 - Vanguard FTSE Canada Index ETF 748,785 4.4 Canada 0.50 0.57 Vanguard Mid-Cap Value ETF 26,992,043 1.2 United States - - Vanguard S&P 500 Index ETF (CAD-hedged) 3,684,627 2.5 Canada 0.06 -

The notes at the back of this document are an integral part of these ﬁnancial statements. 159 MORNINGSTAR CONSERVATIVE PORTFOLIO STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 16,931 $ 13,043 Cash 559 171 Receivable for redeemable unit subscriptions 109 9 Income distribution receivable from underlying funds 37 39 17,636 13,262

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 105 11 105 11

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 17,531 $ 13,251 Cost of investments 16,161 12,867

Net assets attributable to holders of redeemable units, Series A $ 10,123 $ 7,708 Number of redeemable units outstanding, Series A 949 766 Net assets attributable to holders of redeemable units per unit, Series A 10.66 10.07

Net assets attributable to holders of redeemable units, Series F $ 7,231 $ 5,380 Number of redeemable units outstanding, Series F 682 537 Net assets attributable to holders of redeemable units per unit, Series F 10.60 10.02

Net assets attributable to holders of redeemable units, Series I $ 177 $ 163 Number of redeemable units outstanding, Series I 17 16 Net assets attributable to holders of redeemable units per unit, Series I 10.49 9.91

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

160 MORNINGSTAR CONSERVATIVE PORTFOLIO STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ - $ 1 Income distributions received from underlying funds 442 425 Management Fee Rebates income 4 3 Net realized gain (loss) on sale of investments 164 81 Capital gains distributions received from underlying funds 128 19 Net change in unrealized appreciation (depreciation) of investments 594 405 Net gain (loss) on investments 1,332 934

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts 3 (1) Net gain (loss) on derivatives 3 (1)

Net realized gain (loss) on foreign currencies (6) 2 Total net income (loss) 1,329 935

EXPENSES (note 6) Management fees 169 146 Audit 2 1 Independent review committee 1 1 Custody and fund accounting 9 8 Filing fees 20 20 Unitholder reporting 1 1 Administration and transfer agent fees 26 22 Foreign withholding taxes 4 4 Transaction costs (note 3) 11 10 243 213 Expenses absorbed (26) (24) Total expenses net of absorption 217 189

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 556 $ 353 Series F 542 381 Series I 14 12 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,112 746

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.70 $ 0.53 Series F 0.83 0.60 Series I 0.87 0.75

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

161 MORNINGSTAR CONSERVATIVE PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 556 353 542 381 14 12

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (92) (83) (135) (139) (5) (5) (92) (83) (135) (139) (5) (5)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 4,748 4,254 4,519 4,957 - - Reinvested distributions to holders of redeemable units 78 74 113 124 5 5 Net proceeds/(payments) from/for redeemable units transferred in/(out) (91) (96) 91 96 - - Payments for redeemable units redeemed (2,784) (1,931) (3,279) (4,631) - - 1,951 2,301 1,444 546 5 5

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 2,415 2,571 1,851 788 14 12

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 10,123 $ 7,708 $ 7,231 $ 5,380 $ 177 $ 163

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 765,600 535,275 536,997 477,780 16,413 15,937 Redeemable units issued for cash 458,623 425,644 442,879 494,089 - - Redeemable units issued for reinvested distributions 7,310 7,337 10,704 12,346 452 476 Net redeemable units transferred in/(out) (8,695) (9,620) 8,692 9,561 - - Redeemable units redeemed (273,615) (193,036) (317,063) (456,779) - - BALANCE, END OF YEAR 949,223 765,600 682,209 536,997 16,865 16,413

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 13,251 $ 9,880

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,112 746

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (232) (227) (232) (227)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 9,267 9,211 Reinvested distributions to holders of redeemable units 196 203 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (6,063) (6,562) 3,400 2,852

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 4,280 3,371

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 17,531 $ 13,251

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

162 MORNINGSTAR CONSERVATIVE PORTFOLIO STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 1,112 $ 746

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (164) (81) Net change in unrealized (appreciation) depreciation of investments (594) (405) Reinvested distributions from underlying funds (409) (254) Purchase of investments (8,216) (8,691) Proceeds from sale of investments 5,495 5,651 (2,776) (3,034)

CHANGE IN NON-CASH WORKING CAPITAL 2 (33)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 9,167 9,254 Distributions to holders of redeemable units (36) (24) Amounts paid on redemption of redeemable units (5,969) (6,551) 3,162 2,679

NET INCREASE (DECREASE) IN CASH 388 (388)

CASH—BEGINNING OF YEAR 171 559

CASH—END OF YEAR 559 171

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 152 211 Interest - 1

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

163 MORNINGSTAR CONSERVATIVE PORTFOLIO

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units)

NUMBER OF AVERAGE FAIR % OF NET SHARES/UNITS SECURITY COST VALUE ASSETS EQUITIES Canadian—Mutual Funds 28,048 Mackenzie Ivy Canadian Fund Series O $ 474 $ 512 2.9

Canadian—Pooled Funds 38,317 Galibier Canadian Equity Pool Fund 524 597 3.4

Global—Exchange-Traded Funds 5,667 iShares MSCI EAFE Value ETF 314 341 1.9 4,833 JPMorgan BetaBuilders Japan ETF 147 172 1.0 2,396 Schwab Fundamental Emerging Markets Large Company Index ETF 86 86 0.5 547 599 3.4

Global—Mutual Funds 10,884 Black Creek International Equity Fund Class I 205 218 1.2 11,826 Canoe Defensive International Equity Fund Series OX 132 131 0.8 9,606 Capital Group Global Equity Fund (Canada) Series I 354 482 2.8 691 831 4.8

Global—Pooled Funds 7,208 Invesco Select Emerging Markets Pool Series I 100 129 0.7

United States—Exchange-Traded Funds 3,521 Global X MLP & Energy Infrastructure ETF 127 121 0.7 4,103 Vanguard S&P 500 Index ETF (CAD-hedged) 234 258 1.5 361 379 2.2

United States—Mutual Funds 21,779 Beutel Goodman American Equity Fund Class I 374 389 2.2

Total Equities 3,071 3,436 19.6

FIXED INCOME Canadian—Exchange-Traded Funds 139,347 BMO Aggregate Bond Index ETF 2,214 2,325 13.2 35,497 BMO Real Return Bond Index ETF 637 697 4.0 31,555 Vanguard Canadian Short-Term Bond Index ETF 755 773 4.4 3,606 3,795 21.6

Canadian—Mutual Funds 157,015 Beutel Goodman Corporate/Provincial Active Bond Fund Class I 833 865 4.9 142,499 Beutel Goodman Short Term Bond Fund Class I 1,344 1,375 7.9 173,651 Leith Wheeler Core Bond Fund Series A 1,910 1,988 11.3 39,256 Leith Wheeler High Yield Bond Fund 334 345 2.0 168,012 TD Canadian Bond Fund Series O 1,855 1,949 11.1 6,276 6,522 37.2

Global—Exchange-Traded Funds 5,979 iShares J.P. Morgan EM Local Currency Bond ETF 349 344 2.0 2,255 iShares J.P. Morgan USD Emerging Markets Bond ETF 332 333 1.9 681 677 3.9

Global—Mutual Funds 105,870 Pimco Monthly Income Fund Series I 1,481 1,511 8.6 87,568 Templeton Global Bond Fund Series O 1,046 990 5.7 2,527 2,501 14.3

Total Fixed Income 13,090 13,495 77.0

Total Investments 16,161 16,931 96.6 Other Assets Less Liabilities 600 3.4 Net Assets Attributable to Holders of Redeemable Units 17,531 100.0

164 MORNINGSTAR CONSERVATIVE PORTFOLIO

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Market Price Risk Essentially all of the assets and liabilities of the Fund are financial instruments. As at December 31, 2020, if the Fund’s benchmark (54% FTSE Canada Universe These financial instruments comprise the following: Bond Index, 16% FTSE World Government Bond Index, 14% MSCI All Country World ex-Canada Index, 10% FTSE Canada 91 Day T-Bill Index, 6% S&P/TSX Portfolio by Industry Exposure Capped Composite Index) increased or decreased by 10%, with all other variables DEC. 31 DEC. 31 held constant, the net assets of the Fund would have increased or decreased, 2020 (%) 2019 (%) respectively, by approximately $1.7 million (December 31, 2019—$1.3 million), Exchange-Traded Funds—Canadian Bonds 21.6 25.3 or 9.7% (December 31, 2019—9.8%) of total net assets. In practice, the actual Exchange-Traded Funds—Global Bonds 3.9 3.0 results may differ from this sensitivity analysis and the difference could Exchange-Traded Funds—Global Equities 3.4 1.0 be material. Exchange-Traded Funds—U.S. Equities 2.2 3.7 Mutual Funds—Canadian Bonds 37.2 37.1 Mutual Funds—Canadian Equities 2.9 1.8 Foreign Currency Risk Mutual Funds—Global Bonds 14.3 15.7 The tables below indicate the currencies to which the Fund had significant Mutual Funds—Global Equities 4.8 5.8 exposure on its financial instruments as at December 31, 2020 and December Mutual Funds—U.S. Equities 2.2 - 31, 2019 in Canadian dollar terms, including the underlying principal of forward Pooled Funds—Canadian Equities 3.4 3.5 exchange contracts, if any. The Fund may also have indirect foreign currency risk Pooled Funds—Global Equities 0.7 1.5 through its investments in underlying funds. Total financial instruments at fair value 96.6 98.4 Total other assets less liabilities at cost or amortized cost 3.4 1.6 DECEMBER 31, 2020 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) U.S. Dollar 1,397 2 - 1,399 Portfolio by Country Exposure Total 1,397 2 - 1,399 DEC. 31 DEC. 31 % of Net Assets 8.0 - - 8.0 2020 (%) 2019 (%) Country Canada—Exchange-Traded Funds 21.6 25.3 DECEMBER 31, 2019 Canada—Mutual Funds 40.1 38.9 INVESTMENTS CASH OTHER NET TOTAL Canada—Pooled Funds 3.4 3.5 CURRENCY ($000) ($000) ASSETS ($000) ($000) Global—Exchange-Traded Funds 7.3 4.0 U.S. Dollar 826 - - 826 Global—Mutual Funds 19.1 21.5 Global—Pooled Funds 0.7 1.5 Total 826 - - 826 U.S.—Exchange-Traded Funds 2.2 3.7 % of Net Assets 6.2 - - 6.2 U.S.—Mutual Funds 2.2 - Total financial instruments at fair value 96.6 98.4 As at December 31, 2020, if the Canadian dollar had strengthened or weakened Total other assets less liabilities at cost or amortized cost 3.4 1.6 by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 other variables held constant, the Fund’s net assets would have decreased or increased, respectively, by approximately $0.03 million (December 31, 2019—$0.0 million), or 0.2% (December 31, 2019—0.1%) of total net assets. In FAIR VALUE MEASUREMENTS practice, the actual results may differ from this sensitivity analysis and the Below is a summary of the inputs used as at December 31, 2020 and December difference could be material. 31, 2019 in valuing the Fund’s investments carried at fair values. Interest Rate Risk DECEMBER 31, 2020 The majority of the Fund’s assets and liabilities were non-interest bearing as at QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT December 31, 2020 and December 31, 2019. However, the Fund may be MARKETS FOR OBSERVABLE UNOBSERVABLE exposed to indirect interest rate risk in the event that an Underlying Fund holds IDENTICAL INPUTS INPUTS interest-bearing financial instruments. ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Mutual Funds 10,755 - - 10,755 Credit Risk Pooled Funds 726 - - 726 The Fund had no significant direct investments in debt securities or derivatives as Exchange-Traded Funds 5,450 - - 5,450 at December 31, 2020 and December 31, 2019. However, the Fund may be exposed to indirect credit risk in the event that an Underlying Fund holds debt Total Investments 16,931 - - 16,931 instruments or derivatives. The Fund enters into foreign exchange contracts to buy and sell currencies for the purpose of settling foreign securities transactions. These are short term spot settlements carried out with approved counterparties. DECEMBER 31, 2019 The exposure to credit risk on these contracts is considered minimal as the QUOTED PRICES SIGNIFICANT transactions are settled and paid for upon delivery. IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement. Mutual Funds 8,001 - - 8,001 Pooled Funds 665 - - 665 Exchange-Traded Funds 4,377 - - 4,377 Total Investments 13,043 - - 13,043

FINANCIAL INSTRUMENTS RISKS The fundamental investment objective of the Morningstar Conservative Portfolio is to preserve value and achieve modest long-term capital appreciation and income by investing primarily in a diverse mix of other mutual funds and exchange traded funds that invest in Canadian and global ﬁxed-income and equity securities.

The notes at the back of this document are an integral part of these ﬁnancial statements. 165 MORNINGSTAR CONSERVATIVE PORTFOLIO

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF NET ASSETS OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % UNDERLYING AND PRINCIPAL AS AT AS AT FUND % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME ($000) NET ASSETS BUSINESS 2020 2019 Beutel Goodman American Equity Fund Class I 1,771,765 2.2 Canada 0.02 - Beutel Goodman Corporate/Provincial Active Bond Fund Class I 78,290 4.9 Canada 1.11 1.04 Beutel Goodman Short Term Bond Fund Class I 103,507 7.9 Canada 1.33 1.21 Black Creek International Equity Fund Class I 1,097,293 1.2 Canada 0.02 0.02 BMO Aggregate Bond Index ETF 5,464,396 13.2 Canada 0.04 0.04 BMO Real Return Bond Index ETF 151,226 4.0 Canada 0.46 0.69 Canoe Defensive International Equity Fund Series OX 397,038 0.8 Canada 0.03 - Capital Group Global Equity Fund (Canada) Series I 11,148,486 2.8 Canada - - Galibier Canadian Equity Pool Fund 718,484 3.4 Canada 0.08 0.13 Global X MLP & Energy Infrastructure ETF 726,224 0.7 United States 0.02 0.01 Invesco Select Emerging Markets Pool Series I 69,872 0.7 Canada 0.18 0.25 iShares J.P. Morgan EM Local Currency Bond ETF 677,432 2.0 United States 0.05 0.03 iShares J.P. Morgan USD Emerging Markets Bond ETF 24,496,742 1.9 United States - - iShares MSCI EAFE Value ETF 9,196,973 1.9 United States - - JPMorgan BetaBuilders Japan ETF 7,996,555 1.0 United States - - Leith Wheeler Core Bond Fund Series A 186,796 11.3 Canada 1.06 0.74 Leith Wheeler High Yield Bond Fund 6,699 2.0 Canada 5.15 - Mackenzie Ivy Canadian Fund Series O 721,182 2.9 Canada 0.07 0.03 Pimco Monthly Income Fund Series I 20,458,617 8.6 Canada 0.01 0.01 Schwab Fundamental Emerging Markets Large Company Index ETF 4,596,477 0.5 United States - - TD Canadian Bond Fund Series O 15,699,892 11.1 Canada 0.01 0.13 Templeton Global Bond Fund Series O 654,924 5.7 Canada 0.15 0.07 Vanguard Canadian Short-Term Bond Index ETF 1,209,819 4.4 Canada 0.06 0.08 Vanguard S&P 500 Index ETF (CAD-hedged) 3,684,627 1.5 Canada 0.01 -

166 The notes at the back of this document are an integral part of these ﬁnancial statements. MORNINGSTAR GROWTH PORTFOLIO STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 22,624 $ 23,038 Cash 602 287 Receivable for redeemable unit subscriptions 20 286 Income distribution receivable from underlying funds 51 99 23,297 23,710

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 5 278 5 278

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 23,292 $ 23,432 Cost of investments 20,540 22,124

Net assets attributable to holders of redeemable units, Series A $ 13,797 $ 11,031 Number of redeemable units outstanding, Series A 1,213 1,032 Net assets attributable to holders of redeemable units per unit, Series A 11.38 10.69

Net assets attributable to holders of redeemable units, Series F $ 9,304 $ 12,225 Number of redeemable units outstanding, Series F 809 1,135 Net assets attributable to holders of redeemable units per unit, Series F 11.50 10.77

Net assets attributable to holders of redeemable units, Series I $ 191 $ 176 Number of redeemable units outstanding, Series I 17 16 Net assets attributable to holders of redeemable units per unit, Series I 11.39 10.64

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

167 MORNINGSTAR GROWTH PORTFOLIO STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ - $ 2 Income distributions received from underlying funds 642 678 Management Fee Rebates income 6 6 Net realized gain (loss) on sale of investments 101 54 Capital gains distributions received from underlying funds 171 98 Net change in unrealized appreciation (depreciation) of investments 1,170 2,814 Net gain (loss) on investments 2,090 3,652

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (12) - Net gain (loss) on derivatives (12) -

Net realized gain (loss) on foreign currencies 3 5 Total net income (loss) 2,081 3,657

EXPENSES (note 6) Management fees 346 328 Audit 3 3 Independent review committee 1 1 Custody and fund accounting 13 11 Filing fees 20 21 Unitholder reporting 2 2 Administration and transfer agent fees 41 41 Foreign withholding taxes 21 17 Transaction costs (note 3) 20 9 467 433 Expenses absorbed (29) (26) Total expenses net of absorption 438 407

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 1,040 $ 1,337 Series F 587 1,887 Series I 16 26 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,643 3,250

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.84 $ 1.31 Series F 0.62 1.50 Series I 0.94 1.58

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

168 MORNINGSTAR GROWTH PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,040 1,337 587 1,887 16 26

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (2) (9) (78) (157) (4) (4) (2) (9) (78) (157) (4) (4)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 5,062 3,810 2,873 2,821 - - Reinvested distributions to holders of redeemable units 2 9 73 151 3 4 Net proceeds/(payments) from/for redeemable units transferred in/(out) (83) (295) 83 295 - - Payments for redeemable units redeemed (3,253) (2,605) (6,459) (5,433) - - 1,728 919 (3,430) (2,166) 3 4

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 2,766 2,247 (2,921) (436) 15 26

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 13,797 $ 11,031 $ 9,304 $ 12,225 $ 191 $ 176

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,032,095 939,781 1,134,905 1,343,675 16,485 16,141 Redeemable units issued for cash 506,370 376,717 274,948 275,795 - - Redeemable units issued for reinvested distributions 174 810 6,374 14,004 282 344 Net redeemable units transferred in/(out) (7,722) (29,279) 7,623 28,944 - - Redeemable units redeemed (318,102) (255,934) (615,090) (527,513) - - BALANCE, END OF YEAR 1,212,815 1,032,095 808,760 1,134,905 16,767 16,485

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 23,432 $ 21,595

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,643 3,250

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (84) (170) (84) (170)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 7,935 6,631 Reinvested distributions to holders of redeemable units 78 164 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (9,712) (8,038) (1,699) (1,243)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (140) 1,837

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 23,292 $ 23,432

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

169 MORNINGSTAR GROWTH PORTFOLIO STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 1,643 $ 3,250

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (101) (54) Net change in unrealized (appreciation) depreciation of investments (1,170) (2,814) Reinvested distributions from underlying funds (450) (670) Purchase of investments (12,246) (6,425) Proceeds from sale of investments 14,381 7,438 2,057 725

CHANGE IN NON-CASH WORKING CAPITAL 48 (75)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 8,201 6,454 Distributions to holders of redeemable units (6) (6) Amounts paid on redemption of redeemable units (9,985) (7,765) (1,790) (1,317)

NET INCREASE (DECREASE) IN CASH 315 (667)

CASH—BEGINNING OF YEAR 287 954

CASH—END OF YEAR 602 287

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 237 240 Interest - 2

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

170 MORNINGSTAR GROWTH PORTFOLIO

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units)

NUMBER OF AVERAGE FAIR % OF NET NUMBER OF AVERAGE FAIR % OF NET SHARES/UNITS SECURITY COST VALUE ASSETS SHARES/UNITS SECURITY COST VALUE ASSETS EQUITIES United States—Mutual Funds Canadian—Exchange-Traded Funds 77,896 Beutel Goodman American Equity Fund 33,691 Vanguard FTSE Canada Index ETF $ 1,117 $ 1,242 5.3 Class I $ 1,325 $ 1,390 6.0 5,444 TD U.S. Blue Chip Equity Fund Series O 273 406 1.7 Canadian—Mutual Funds 10,501 TD U.S. Mid-Cap Growth Fund Series O 414 525 2.3 5,429 Franklin Bissett Canadian Equity Fund 2,012 2,321 10.0 Series O 817 853 3.7 59,573 Mackenzie Ivy Canadian Fund Series O 1,058 1,088 4.7 Total Equities 16,380 18,324 78.7 48,890 Pender Value Fund Class O 713 945 4.0 2,588 2,886 12.4 FIXED INCOME Canadian—Pooled Funds Canadian—Exchange-Traded Funds 69,756 Galibier Canadian Equity Pool Fund 979 1,087 4.7 44,995 BMO Aggregate Bond Index ETF 701 751 3.2 Global—Exchange-Traded Funds Canadian—Mutual Funds 19,147 iShares Global Energy ETF 499 495 2.1 41,810 Beutel Goodman Short Term Bond Fund 4,751 iShares MSCI EAFE Value ETF 264 286 1.2 Class I 393 403 1.7 12,795 iShares MSCI Europe Financials ETF 253 286 1.2 81,014 Leith Wheeler Core Bond Fund Series A 886 927 4.0 5,686 iShares MSCI Germany ETF 194 230 1.0 19,740 Leith Wheeler High Yield Bond Fund 168 174 0.7 4,229 iShares MSCI Mexico ETF 189 231 1.0 76,868 TD Canadian Bond Fund Series O 850 892 3.8 1,100 iShares MSCI South Korea ETF 79 121 0.5 18,250 iShares MSCI United Kingdom ETF 726 681 2.9 2,297 2,396 10.2 25,927 JPMorgan BetaBuilders Japan ETF 786 924 4.0 14,459 Schwab Fundamental Emerging Markets Global—Exchange-Traded Funds Large Company Index ETF 519 520 2.3 4,010 iShares J.P. Morgan EM Local Currency 3,509 3,774 16.2 Bond ETF 235 231 1.0 1,933 iShares J.P. Morgan USD Emerging Markets Bond ETF 285 286 1.2 Global—Mutual Funds 37,957 Black Creek International Equity Fund 520 517 2.2 Class I 780 759 3.3 89,896 Canoe Defensive International Equity Global—Mutual Funds Fund Series OX 1,074 995 4.3 28,403 Pimco Monthly Income Fund Series I 399 405 1.8 41,005 Capital Group Global Equity Fund 20,428 Templeton Global Bond Fund Series O 243 231 1.0 (Canada) Series I 1,481 2,059 8.8 642 636 2.8 40,183 CC&L Global Alpha Fund Series I 427 472 2.0 3,762 4,285 18.4 Total Fixed Income 4,160 4,300 18.4

Global—Pooled Funds 32,222 Invesco Select Emerging Markets Pool Series I 469 577 2.5

United States—Exchange-Traded Funds Total Investments 20,540 22,624 97.1 12,596 Global X MLP & Energy Other Assets Less Liabilities 668 2.9 Infrastructure ETF 482 432 1.9 Net Assets Attributable to Holders of 987 Vanguard Consumer Staples ETF 187 219 0.9 Redeemable Units 23,292 100.0 5,045 Vanguard Financials ETF 379 468 2.0 4,129 Vanguard Mid-Cap Value ETF 527 626 2.7 6,466 Vanguard S&P 500 Index ETF (CAD-hedged) 369 407 1.7 1,944 2,152 9.2

171 MORNINGSTAR GROWTH PORTFOLIO

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FINANCIAL INSTRUMENTS RISKS Essentially all of the assets and liabilities of the Fund are financial instruments. The fundamental investment objective of the Morningstar Growth Portfolio is to These financial instruments comprise the following: achieve long-term capital appreciation by investing primarily in a diverse mix of other mutual funds and exchange traded funds that invest in Canadian and global Portfolio by Industry Exposure equity and fixed income securities. DEC. 31 DEC. 31 2020 (%) 2019 (%) Market Price Risk Exchange-Traded Funds—Canadian Bonds 3.2 5.0 As at December 31, 2020, if the Fund’s benchmark (56% MSCI All Country World Exchange-Traded Funds—Canadian Equities 5.3 5.5 Exchange-Traded Funds—Global Bonds 2.2 2.0 ex-Canada Index, 24% S&P/TSX Capped Composite Index, 14% FTSE Canada Exchange-Traded Funds—Global Equities 16.2 7.8 Universe Bond Index, 4% FTSE World Government Bond Index, 2% FTSE Exchange-Traded Funds—U.S. Equities 9.2 7.7 Canada 91 Day T-Bill Index) increased or decreased by 10%, with all other Mutual Funds—Canadian Bonds 10.2 11.5 variables held constant, the net assets of the Fund would have increased or Mutual Funds—Canadian Equities 12.4 13.8 decreased, respectively, by approximately $2.3 million (December 31, Mutual Funds—Global Bonds 2.8 3.1 2019—$2.3 million), or 9.7% (December 31, 2019—9.8%) of total net assets. In Mutual Funds—Global Equities 18.4 26.9 practice, the actual results may differ from this sensitivity analysis and the Mutual Funds—U.S. Equities 10.0 5.2 difference could be material. Pooled Funds—Canadian Equities 4.7 6.0 Pooled Funds—Global Equities 2.5 3.8 Total financial instruments at fair value 97.1 98.3 Foreign Currency Risk Total other assets less liabilities at cost or amortized cost 2.9 1.7 The tables below indicate the currencies to which the Fund had significant Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 exposure on its financial instruments as at December 31, 2020 and December 31, 2019 in Canadian dollar terms, including the underlying principal of forward exchange contracts, if any. The Fund may also have indirect foreign currency risk Portfolio by Country Exposure through its investments in underlying funds. DEC. 31 DEC. 31 2020 (%) 2019 (%) DECEMBER 31, 2020 INVESTMENTS CASH OTHER NET TOTAL Country CURRENCY ($000) ($000) ASSETS ($000) ($000) Canada—Exchange-Traded Funds 8.5 10.5 U.S. Dollar 6,036 13 1 6,050 Canada—Mutual Funds 22.6 25.3 Canada—Pooled Funds 4.7 6.0 Total 6,036 13 1 6,050 Global—Exchange-Traded Funds 18.4 9.8 % of Net Assets 25.9 0.1 - 26.0 Global—Mutual Funds 21.2 30.0 Global—Pooled Funds 2.5 3.8 U.S.—Exchange-Traded Funds 9.2 7.7 U.S.—Mutual Funds 10.0 5.2 DECEMBER 31, 2019 INVESTMENTS CASH OTHER NET TOTAL Total financial instruments at fair value 97.1 98.3 CURRENCY ($000) ($000) ASSETS ($000) ($000) Total other assets less liabilities at cost or amortized cost 2.9 1.7 U.S. Dollar 3,712 1 - 3,713 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Total 3,712 1 - 3,713 % of Net Assets 15.8 - - 15.8 FAIR VALUE MEASUREMENTS As at December 31, 2020, if the Canadian dollar had strengthened or weakened Below is a summary of the inputs used as at December 31, 2020 and December by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all 31, 2019 in valuing the Fund’s investments carried at fair values. other variables held constant, the Fund’s net assets would have decreased or DECEMBER 31, 2020 increased, respectively, by approximately $0.1 million (December 31, QUOTED PRICES SIGNIFICANT 2019—$0.1 million), or 0.5% (December 31, 2019—0.3%) of total net assets. In IN ACTIVE OTHER SIGNIFICANT practice, the actual results may differ from this sensitivity analysis and the MARKETS FOR OBSERVABLE UNOBSERVABLE difference could be material. IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Interest Rate Risk Mutual Funds 12,524 - - 12,524 The majority of the Fund’s assets and liabilities were non-interest bearing as at Pooled Funds 1,664 - - 1,664 December 31, 2020 and December 31, 2019. However, the Fund may be Exchange-Traded Funds 8,436 - - 8,436 exposed to indirect interest rate risk in the event that an Underlying Fund holds interest-bearing financial instruments. Total Investments 22,624 - - 22,624

Credit Risk DECEMBER 31, 2019 The Fund had no signiﬁcant direct investments in debt securities or derivatives as QUOTED PRICES SIGNIFICANT at December 31, 2020 and December 31, 2019. However, the Fund may be IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE exposed to indirect credit risk in the event that an Underlying Fund holds debt IDENTICAL INPUTS INPUTS instruments or derivatives. The Fund enters into foreign exchange contracts to ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL buy and sell currencies for the purpose of settling foreign securities transactions. ($000) ($000) ($000) ($000) These are short term spot settlements carried out with approved counterparties. Mutual Funds 14,173 - - 14,173 The exposure to credit risk on these contracts is considered minimal as the Pooled Funds 2,293 - - 2,293 transactions are settled and paid for upon delivery. Exchange-Traded Funds 6,572 - - 6,572 Total Investments 23,038 - - 23,038 OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement.

172 The notes at the back of this document are an integral part of these ﬁnancial statements. MORNINGSTAR GROWTH PORTFOLIO

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF NET ASSETS OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % UNDERLYING AND PRINCIPAL AS AT AS AT FUND % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME ($000) NET ASSETS BUSINESS 2020 2019 Beutel Goodman American Equity Fund Class I 1,771,765 6.0 Canada 0.08 0.05 Beutel Goodman Short Term Bond Fund Class I 103,507 1.7 Canada 0.39 0.53 Black Creek International Equity Fund Class I 1,097,293 3.3 Canada 0.07 0.10 BMO Aggregate Bond Index ETF 5,464,396 3.2 Canada 0.01 0.02 Canoe Defensive International Equity Fund Series OX 397,038 4.3 Canada 0.25 - Capital Group Global Equity Fund (Canada) Series I 11,148,486 8.8 Canada 0.02 0.02 CC&L Global Alpha Fund Series I 36,681 2.0 Canada 1.29 1.00 Franklin Bissett Canadian Equity Fund Series O 2,629,824 3.7 Canada 0.03 0.03 Galibier Canadian Equity Pool Fund 718,484 4.7 Canada 0.15 0.40 Global X MLP & Energy Infrastructure ETF 726,224 1.9 United States 0.06 0.04 Invesco Select Emerging Markets Pool Series I 69,872 2.5 Canada 0.83 1.11 iShares Global Energy ETF 1,269,763 2.1 United States 0.04 - iShares J.P. Morgan EM Local Currency Bond ETF 677,432 1.0 United States 0.03 0.03 iShares J.P. Morgan USD Emerging Markets Bond ETF 24,496,742 1.2 United States - - iShares MSCI EAFE Value ETF 9,196,973 1.2 United States - - iShares MSCI Europe Financials ETF 1,323,752 1.2 United States 0.02 - iShares MSCI Germany ETF 3,292,790 1.0 United States 0.01 - iShares MSCI Mexico ETF 1,655,435 1.0 United States 0.01 - iShares MSCI South Korea ETF 9,297,481 0.5 United States - - iShares MSCI United Kingdom ETF 3,650,324 2.9 United States 0.02 0.01 JPMorgan BetaBuilders Japan ETF 7,996,555 4.0 United States 0.01 0.02 Leith Wheeler Core Bond Fund Series A 186,796 4.0 Canada 0.50 0.52 Leith Wheeler High Yield Bond Fund 6,699 0.7 Canada 2.59 - Mackenzie Ivy Canadian Fund Series O 721,182 4.7 Canada 0.15 0.14 Pender Value Fund Class O 280,790 4.0 Canada 0.34 0.31 Pimco Monthly Income Fund Series I 20,458,617 1.8 Canada - - Schwab Fundamental Emerging Markets Large Company Index ETF 4,596,477 2.3 United States 0.01 - TD Canadian Bond Fund Series O 15,699,892 3.8 Canada 0.01 0.09 TD U.S. Blue Chip Equity Fund Series O 9,910,670 1.7 Canada - 0.01 TD U.S. Mid-Cap Growth Fund Series O 3,124,439 2.3 Canada 0.02 - Templeton Global Bond Fund Series O 654,924 1.0 Canada 0.04 0.02 Vanguard Consumer Staples ETF 8,363,917 0.9 United States - 0.01 Vanguard Financials ETF 9,861,510 2.0 United States - - Vanguard FTSE Canada Index ETF 748,785 5.3 Canada 0.17 0.19 Vanguard Mid-Cap Value ETF 26,992,043 2.7 United States - - Vanguard S&P 500 Index ETF (CAD-hedged) 3,684,627 1.7 Canada 0.01 -

The notes at the back of this document are an integral part of these ﬁnancial statements. 173 MORNINGSTAR MODERATE PORTFOLIO STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 19,551 $ 17,676 Cash 329 322 Receivable for redeemable unit subscriptions 88 10 Income distribution receivable from underlying funds 47 59 20,015 18,067

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 13 7 13 7

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 20,002 $ 18,060 Cost of investments 18,300 17,160

Net assets attributable to holders of redeemable units, Series A $ 10,368 $ 9,249 Number of redeemable units outstanding, Series A 947 898 Net assets attributable to holders of redeemable units per unit, Series A 10.95 10.30

Net assets attributable to holders of redeemable units, Series F $ 8,916 $ 8,162 Number of redeemable units outstanding, Series F 807 786 Net assets attributable to holders of redeemable units per unit, Series F 11.05 10.39

Net assets attributable to holders of redeemable units, Series I $ 718 $ 649 Number of redeemable units outstanding, Series I 65 63 Net assets attributable to holders of redeemable units per unit, Series I 10.99 10.32

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

174 MORNINGSTAR MODERATE PORTFOLIO STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Interest for distribution purposes $ - $ 1 Income distributions received from underlying funds 540 532 Management Fee Rebates income 3 3 Net realized gain (loss) on sale of investments 86 51 Capital gains distributions received from underlying funds 168 13 Net change in unrealized appreciation (depreciation) of investments 735 1,058 Net gain (loss) on investments 1,532 1,658

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (3) - Net gain (loss) on derivatives (3) -

Net realized gain (loss) on foreign currencies (2) 2 Total net income (loss) 1,527 1,660

EXPENSES (note 6) Management fees 231 200 Audit 3 2 Independent review committee 1 1 Custody and fund accounting 11 8 Filing fees 19 21 Unitholder reporting 1 1 Administration and transfer agent fees 31 26 Foreign withholding taxes 9 7 Transaction costs (note 3) 12 7 318 273 Expenses absorbed (26) (24) Total expenses net of absorption 292 249

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 577 $ 671 Series F 602 680 Series I 56 60 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,235 1,411

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.63 $ 0.83 Series F 0.76 0.97 Series I 0.89 1.04

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

175 MORNINGSTAR MODERATE PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 577 671 602 680 56 60

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (53) (84) (125) (136) (16) (17) (53) (84) (125) (136) (16) (17)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 3,183 3,628 2,404 3,322 123 157 Reinvested distributions to holders of redeemable units 52 82 106 123 16 17 Net proceeds/(payments) from/for redeemable units transferred in/(out) (200) (100) 200 100 - - Payments for redeemable units redeemed (2,440) (1,347) (2,433) (2,388) (110) (21) 595 2,263 277 1,157 29 153

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 1,119 2,850 754 1,701 69 196

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 10,368 $ 9,249 $ 8,916 $ 8,162 $ 718 $ 649

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 897,775 671,487 785,911 673,825 62,831 47,526 Redeemable units issued for cash 305,937 362,455 228,820 324,641 12,166 15,710 Redeemable units issued for reinvested distributions 4,835 7,940 9,639 11,851 1,496 1,671 Net redeemable units transferred in/(out) (19,594) (9,863) 19,368 9,757 - - Redeemable units redeemed (242,198) (134,244) (236,520) (234,163) (11,155) (2,076) BALANCE, END OF YEAR 946,755 897,775 807,218 785,911 65,338 62,831

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 18,060 $ 13,313

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,235 1,411

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (194) (237) (194) (237)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 5,710 7,107 Reinvested distributions to holders of redeemable units 174 222 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (4,983) (3,756) 901 3,573

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 1,942 4,747

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 20,002 $ 18,060

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

176 MORNINGSTAR MODERATE PORTFOLIO STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 1,235 $ 1,411

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (86) (51) Net change in unrealized (appreciation) depreciation of investments (735) (1,058) Reinvested distributions from underlying funds (466) (365) Purchase of investments (8,896) (6,679) Proceeds from sale of investments 8,308 3,299 (640) (3,443)

CHANGE IN NON-CASH WORKING CAPITAL 12 (48)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 5,632 7,103 Distributions to holders of redeemable units (20) (15) Amounts paid on redemption of redeemable units (4,977) (3,750) 635 3,338

NET INCREASE (DECREASE) IN CASH 7 (153)

CASH—BEGINNING OF YEAR 322 475

CASH—END OF YEAR 329 322

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 202 228 Interest - 1

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

177 MORNINGSTAR MODERATE PORTFOLIO

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units)

NUMBER OF AVERAGE FAIR % OF NET SHARES/UNITS SECURITY COST VALUE ASSETS EQUITIES Canadian—Exchange-Traded Funds 13,196 Vanguard FTSE Canada Index ETF $ 428 $ 487 2.4

Canadian—Mutual Funds 37,826 Mackenzie Ivy Canadian Fund Series O 668 691 3.5

Canadian—Pooled Funds 63,275 Galibier Canadian Equity Pool Fund 887 986 4.9

Global—Exchange-Traded Funds 9,167 iShares Global Energy ETF 236 237 1.2 4,094 iShares MSCI EAFE Value ETF 225 246 1.2 6,626 iShares MSCI Europe Financials ETF 129 148 0.7 3,675 iShares MSCI Germany ETF 128 149 0.8 1,840 iShares MSCI Mexico ETF 82 101 0.5 5,242 iShares MSCI United Kingdom ETF 198 196 1.0 11,171 JPMorgan BetaBuilders Japan ETF 342 398 2.0 4,154 Schwab Fundamental Emerging Markets Large Company Index ETF 149 149 0.8 1,489 1,624 8.2

Global—Mutual Funds 20,131 Black Creek International Equity Fund Class I 401 403 2.0 41,012 Canoe Defensive International Equity Fund Series OX 472 454 2.3 26,249 Capital Group Global Equity Fund (Canada) Series I 954 1,318 6.6 1,827 2,175 10.9

Global—Pooled Funds 8,341 Invesco Select Emerging Markets Pool Series I 121 149 0.7

United States—Exchange-Traded Funds 5,427 Global X MLP & Energy Infrastructure ETF 203 186 0.9 850 Vanguard Consumer Staples ETF 163 188 1.0 2,177 Vanguard Financials ETF 166 202 1.0 7,960 Vanguard S&P 500 Index ETF (CAD-hedged) 454 502 2.5 986 1,078 5.4

United States—Mutual Funds 41,953 Beutel Goodman American Equity Fund Class I 722 748 3.7

Total Equities 7,128 7,938 39.7

FIXED INCOME Canadian—Exchange-Traded Funds 146,146 BMO Aggregate Bond Index ETF 2,296 2,439 12.2 20,514 BMO Real Return Bond Index ETF 365 403 2.0 14,184 Vanguard Canadian Short-Term Bond Index ETF 338 347 1.7 2,999 3,189 15.9

Canadian—Mutual Funds 145,186 Beutel Goodman Corporate/Provincial Active Bond Fund Class I 762 800 4.0 108,086 Beutel Goodman Short Term Bond Fund Class I 1,014 1,043 5.2 170,168 Leith Wheeler Core Bond Fund Series A 1,844 1,948 9.8 34,021 Leith Wheeler High Yield Bond Fund 289 299 1.5 163,395 TD Canadian Bond Fund Series O 1,780 1,895 9.5 5,689 5,985 30.0

Global—Exchange-Traded Funds 4,320 iShares J.P. Morgan EM Local Currency Bond ETF 254 249 1.2 1,669 iShares J.P. Morgan USD Emerging Markets Bond ETF 247 247 1.2 501 496 2.4

Global—Mutual Funds 73,427 Pimco Monthly Income Fund Series I 1,033 1,047 5.2 79,214 Templeton Global Bond Fund Series O 950 896 4.5 1,983 1,943 9.7

Total Fixed Income 11,172 11,613 58.0

Total Investments 18,300 19,551 97.7 Other Assets Less Liabilities 451 2.3 Net Assets Attributable to Holders of Redeemable Units 20,002 100.0

178 MORNINGSTAR MODERATE PORTFOLIO

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FINANCIAL INSTRUMENTS RISKS Essentially all of the assets and liabilities of the Fund are financial instruments. The fundamental investment objective of the Morningstar Moderate Portfolio is to These financial instruments comprise the following: achieve long-term capital appreciation by investing primarily in a diverse mix of other mutual funds and exchange traded funds that invest in Canadian and global Portfolio by Industry Exposure equity and fixed income securities. DEC. 31 DEC. 31 2020 (%) 2019 (%) Market Price Risk Exchange-Traded Funds—Canadian Bonds 15.9 17.9 As at December 31, 2020, if the Fund’s benchmark (43% FTSE Canada Universe Exchange-Traded Funds—Canadian Equities 2.4 2.5 Exchange-Traded Funds—Global Bonds 2.4 2.0 Bond Index, 28% MSCI All Country World ex-Canada Index, 12% FTSE World Exchange-Traded Funds—Global Equities 8.2 2.9 Government Bond Index, 12% S&P/TSX Capped Composite Index, 5% FTSE Exchange-Traded Funds—U.S. Equities 5.4 5.5 Canada 91 Day T-Bill Index) increased or decreased by 10%, with all other Mutual Funds—Canadian Bonds 30.0 30.0 variables held constant, the net assets of the Fund would have increased or Mutual Funds—Canadian Equities 3.5 3.6 decreased, respectively, by approximately $2.0 million (December 31, Mutual Funds—Global Bonds 9.7 10.5 2019—$1.8 million), or 9.8% (December 31, 2019—9.8%) of total net assets. In Mutual Funds—Global Equities 10.9 15.5 practice, the actual results may differ from this sensitivity analysis and the Mutual Funds—U.S. Equities 3.7 - difference could be material. Pooled Funds—Canadian Equities 4.9 5.0 Pooled Funds—Global Equities 0.7 2.5 Total financial instruments at fair value 97.7 97.9 Foreign Currency Risk Total other assets less liabilities at cost or amortized cost 2.3 2.1 The tables below indicate the currencies to which the Fund had significant Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 exposure on its financial instruments as at December 31, 2020 and December 31, 2019 in Canadian dollar terms, including the underlying principal of forward exchange contracts, if any. The Fund may also have indirect foreign currency risk Portfolio by Country Exposure through its investments in underlying funds. DEC. 31 DEC. 31 2020 (%) 2019 (%) DECEMBER 31, 2020 INVESTMENTS CASH OTHER NET TOTAL Country CURRENCY ($000) ($000) ASSETS ($000) ($000) Canada—Exchange-Traded Funds 18.3 20.4 U.S. Dollar 2,696 4 2 2,702 Canada—Mutual Funds 33.5 33.6 Canada—Pooled Funds 4.9 5.0 Total 2,696 4 2 2,702 Global—Exchange-Traded Funds 10.6 4.9 % of Net Assets 13.5 - - 13.5 Global—Mutual Funds 20.6 26.0 Global—Pooled Funds 0.7 2.5 U.S.—Exchange-Traded Funds 5.4 5.5 U.S.—Mutual Funds 3.7 - DECEMBER 31, 2019 INVESTMENTS CASH OTHER NET TOTAL Total financial instruments at fair value 97.7 97.9 CURRENCY ($000) ($000) ASSETS ($000) ($000) Total other assets less liabilities at cost or amortized cost 2.3 2.1 U.S. Dollar 1,425 - 2 1,427 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Total 1,425 - 2 1,427 % of Net Assets 7.9 - - 7.9 FAIR VALUE MEASUREMENTS As at December 31, 2020, if the Canadian dollar had strengthened or weakened Below is a summary of the inputs used as at December 31, 2020 and December by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all 31, 2019 in valuing the Fund’s investments carried at fair values. other variables held constant, the Fund’s net assets would have decreased or DECEMBER 31, 2020 increased, respectively, by approximately $0.1 million (December 31, QUOTED PRICES SIGNIFICANT 2019—$0.0 million), or 0.3% (December 31, 2019—0.2%) of total net assets. In IN ACTIVE OTHER SIGNIFICANT practice, the actual results may differ from this sensitivity analysis and the MARKETS FOR OBSERVABLE UNOBSERVABLE difference could be material. IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Interest Rate Risk Mutual Funds 11,542 - - 11,542 The majority of the Fund’s assets and liabilities were non-interest bearing as at Pooled Funds 1,135 - - 1,135 December 31, 2020 and December 31, 2019. However, the Fund may be Exchange-Traded Funds 6,874 - - 6,874 exposed to indirect interest rate risk in the event that an Underlying Fund holds interest-bearing financial instruments. Total Investments 19,551 - - 19,551

Credit Risk DECEMBER 31, 2019 The Fund had no signiﬁcant direct investments in debt securities or derivatives as QUOTED PRICES SIGNIFICANT at December 31, 2020 and December 31, 2019. However, the Fund may be IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE exposed to indirect credit risk in the event that an Underlying Fund holds debt IDENTICAL INPUTS INPUTS instruments or derivatives. The Fund enters into foreign exchange contracts to ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL buy and sell currencies for the purpose of settling foreign securities transactions. ($000) ($000) ($000) ($000) These are short term spot settlements carried out with approved counterparties. Mutual Funds 10,772 - - 10,772 The exposure to credit risk on these contracts is considered minimal as the Pooled Funds 1,352 - - 1,352 transactions are settled and paid for upon delivery. Exchange-Traded Funds 5,552 - - 5,552 Total Investments 17,676 - - 17,676 OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement.

The notes at the back of this document are an integral part of these ﬁnancial statements. 179 MORNINGSTAR MODERATE PORTFOLIO

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF NET ASSETS OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % UNDERLYING AND PRINCIPAL AS AT AS AT FUND % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME ($000) NET ASSETS BUSINESS 2020 2019 Beutel Goodman American Equity Fund Class I 1,771,765 3.7 Canada 0.04 - Beutel Goodman Corporate/Provincial Active Bond Fund Class I 78,290 4.0 Canada 1.02 1.13 Beutel Goodman Short Term Bond Fund Class I 103,507 5.2 Canada 1.01 1.12 Black Creek International Equity Fund Class I 1,097,293 2.0 Canada 0.04 0.04 BMO Aggregate Bond Index ETF 5,464,396 12.2 Canada 0.04 0.04 BMO Real Return Bond Index ETF 151,226 2.0 Canada 0.27 0.46 Canoe Defensive International Equity Fund Series OX 397,038 2.3 Canada 0.11 - Capital Group Global Equity Fund (Canada) Series I 11,148,486 6.6 Canada 0.01 0.01 Galibier Canadian Equity Pool Fund 718,484 4.9 Canada 0.14 0.25 Global X MLP & Energy Infrastructure ETF 726,224 0.9 United States 0.03 0.02 Invesco Select Emerging Markets Pool Series I 69,872 0.7 Canada 0.21 0.57 iShares Global Energy ETF 1,269,763 1.2 United States 0.02 - iShares J.P. Morgan EM Local Currency Bond ETF 677,432 1.2 United States 0.04 0.03 iShares J.P. Morgan USD Emerging Markets Bond ETF 24,496,742 1.2 United States - - iShares MSCI EAFE Value ETF 9,196,973 1.2 United States - - iShares MSCI Europe Financials ETF 1,323,752 0.7 United States 0.01 - iShares MSCI Germany ETF 3,292,790 0.8 United States - - iShares MSCI Mexico ETF 1,655,435 0.5 United States 0.01 - iShares MSCI United Kingdom ETF 3,650,324 1.0 United States 0.01 - JPMorgan BetaBuilders Japan ETF 7,996,555 2.0 United States - 0.01 Leith Wheeler Core Bond Fund Series A 186,796 9.8 Canada 1.04 0.86 Leith Wheeler High Yield Bond Fund 6,699 1.5 Canada 4.46 - Mackenzie Ivy Canadian Fund Series O 721,182 3.5 Canada 0.10 0.08 Pimco Monthly Income Fund Series I 20,458,617 5.2 Canada 0.01 - Schwab Fundamental Emerging Markets Large Company Index ETF 4,596,477 0.8 United States - - TD Canadian Bond Fund Series O 15,699,892 9.5 Canada 0.01 0.15 Templeton Global Bond Fund Series O 654,924 4.5 Canada 0.14 0.07 Vanguard Canadian Short-Term Bond Index ETF 1,209,819 1.7 Canada 0.03 0.05 Vanguard Consumer Staples ETF 8,363,917 1.0 United States - - Vanguard Financials ETF 9,861,510 1.0 United States - - Vanguard FTSE Canada Index ETF 748,785 2.4 Canada 0.06 0.07 Vanguard S&P 500 Index ETF (CAD-hedged) 3,684,627 2.5 Canada 0.01 -

180 The notes at the back of this document are an integral part of these ﬁnancial statements. MORNINGSTAR STRATEGIC CANADIAN EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 29,916 $ 34,965 Cash 1,152 766 Receivable for redeemable unit subscriptions 82 20 Dividend and accrued interest receivable 91 95 31,241 35,846

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 34 67 34 67

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 31,207 $ 35,779 Cost of investments 27,788 32,153

Net assets attributable to holders of redeemable units, Series A $ 13,142 $ 14,921 Number of redeemable units outstanding, Series A 1,035 1,210 Net assets attributable to holders of redeemable units per unit, Series A 12.70 12.33

Net assets attributable to holders of redeemable units, Series D $ 225 $ 260 Number of redeemable units outstanding, Series D 18 21 Net assets attributable to holders of redeemable units per unit, Series D 12.68 12.31

Net assets attributable to holders of redeemable units, Series F $ 17,222 $ 20,012 Number of redeemable units outstanding, Series F 1,349 1,612 Net assets attributable to holders of redeemable units per unit, Series F 12.77 12.42

Net assets attributable to holders of redeemable units, Series I $ 618 $ 586 Number of redeemable units outstanding, Series I 49 48 Net assets attributable to holders of redeemable units per unit, Series I 12.73 12.34

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

181 MORNINGSTAR STRATEGIC CANADIAN EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 937 $ 1,108 Interest for distribution purposes - 2 Management Fee Rebates income 5 2 Net realized gain (loss) on sale of investments 1,190 (416) Net change in unrealized appreciation (depreciation) of investments (684) 6,760 Total net income (loss) 1,448 7,456

EXPENSES (note 6) Management fees 330 394 Legal - 1 Audit 5 4 Independent review committee 2 2 Custody and fund accounting 17 15 Filing fees 21 24 Unitholder reporting 4 5 Administration and transfer agent fees 76 85 Transaction costs (note 3) 19 28 474 558 Expenses absorbed (35) (29) Total expenses net of absorption 439 529

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ 304 $ 2,681 Series D 1 45 Series F 672 4,101 Series I 32 100 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 1,009 6,927

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ 0.27 $ 2.00 Series D 0.05 2.11 Series F 0.44 2.24 Series I 0.67 2.16

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

182 MORNINGSTAR STRATEGIC CANADIAN EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 304 2,681 1 45 672 4,101

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (58) (95) (3) (4) (289) (397) (58) (95) (3) (4) (289) (397)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 1,137 1,533 38 16 3,765 3,392 Reinvested distributions to holders of redeemable units 54 88 3 4 251 347 Net proceeds/(payments) from/for redeemable units transferred in/(out) (596) (698) - 2 596 695 Payments for redeemable units redeemed (2,620) (3,550) (74) (45) (7,785) (10,431) (2,025) (2,627) (33) (23) (3,173) (5,997)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (1,779) (41) (35) 18 (2,790) (2,293)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 13,142 $ 14,921 $ 225 $ 260 $ 17,222 $ 20,012

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 1,209,681 1,426,979 21,152 23,106 1,611,631 2,108,610 Redeemable units issued for cash 94,863 130,401 3,362 1,308 326,788 285,535 Redeemable units issued for reinvested distributions 4,219 7,096 238 346 19,609 27,884 Net redeemable units transferred in/(out) (49,373) (57,867) - 213 48,702 56,769 Redeemable units redeemed (224,416) (296,928) (6,983) (3,821) (657,991) (867,167) BALANCE, END OF YEAR 1,034,974 1,209,681 17,769 21,152 1,348,739 1,611,631

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS 32 100 1,009 6,927

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (13) (13) (363) (509) (13) (13) (363) (509)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued - - 4,940 4,941 Reinvested distributions to holders of redeemable units 13 13 321 452 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - (1) Payments for redeemable units redeemed - - (10,479) (14,026) 13 13 (5,218) (8,634)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 32 100 (4,572) (2,216)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 618 $ 586 $ 31,207 $ 35,779

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 47,528 46,497 Redeemable units issued for cash - - Redeemable units issued for reinvested distributions 1,033 1,031 Net redeemable units transferred in/(out) - - Redeemable units redeemed - - BALANCE, END OF YEAR 48,561 47,528

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

183 MORNINGSTAR STRATEGIC CANADIAN EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ 1,009 $ 6,927

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (1,190) 416 Net change in unrealized (appreciation) depreciation of investments 684 (6,760) Purchase of investments (9,533) (17,205) Proceeds from sale of investments 15,088 26,208 6,058 9,586

CHANGE IN NON-CASH WORKING CAPITAL 4 48

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 4,878 4,998 Distributions to holders of redeemable units (42) (57) Amounts paid on redemption of redeemable units (10,512) (14,002) (5,676) (9,061)

NET INCREASE (DECREASE) IN CASH 386 573

CASH—BEGINNING OF YEAR 766 193

CASH—END OF YEAR 1,152 766

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 941 1,156 Interest - 2

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

184 MORNINGSTAR STRATEGIC CANADIAN EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS Commercial Banks Specialty Retail 9,380 Bank of Montreal $ 898 $ 908 2.9 17,540 Dollarama Inc. $ 761 $ 910 2.9 8,193 Canadian Imperial Bank of Commerce 916 891 2.9 12,367 National Bank of Canada 750 886 2.8 Wireless Telecommunications Services 8,419 Royal Bank of Canada 827 880 2.8 14,995 Rogers Communications Inc. Cl. B 902 889 2.8 12,852 The Toronto-Dominion Bank 921 924 3.0 4,312 4,489 14.4 Total Investments 27,788 29,916 95.9 Commercial Services & Supplies 47,867 Transcontinental Inc. Cl. A 975 982 3.1 Other Assets Less Liabilities 1,291 4.1 Net Assets Attributable to Holders of Containers & Packaging Redeemable Units 31,207 100.0 62,726 Cascades Inc. 856 913 2.9 15,340 CCL Industries Inc. Cl. B 886 886 2.8 1,742 1,799 5.7

Diversiﬁed Financial Services 51,872 CI Financial Corp. 1,102 818 2.6 7,226 TMX Group Limited 605 919 3.0 1,707 1,737 5.6

Diversiﬁed Telecommunications Services 16,029 BCE Inc. 894 873 2.8

Energy Equipment & Services 123,495 Enerﬂex, Ltd. 724 810 2.6 67,560 North American Construction Group, Ltd. 925 841 2.7 1,649 1,651 5.3

Equity Real Estate Investment Trusts (REITs) 62,898 H&R Real Estate Investment Trust 1,168 836 2.7

Food & Staples Retailing 21,285 Alimentation Couche-Tard Inc. Cl. B 908 923 2.9 25,623 Empire Company Limited Cl. A 788 892 2.9 1,696 1,815 5.8

Food Products 9,371 George Weston Limited 943 891 2.9

Independent Power And Renewable Electricity Producers 20,146 Northland Power Inc. 645 920 2.9

Insurance 15,531 Sun Life Financial Inc. 814 879 2.8

IT Services 9,451 CGI Inc. 726 954 3.1

Machinery 9,993 Toromont Industries, Ltd. 548 891 2.9

Media 9,596 Cogeco Communications Inc. 750 939 3.0

Metals & Mining 12,004 Kirkland Lake Gold Ltd. 617 631 2.0 35,182 Torex Gold Resources, Inc. 641 672 2.2 1,258 1,303 4.2

Multi-Utilities 23,233 ATCO, Ltd. Cl. I 1,044 848 2.7

Oil, Gas & Consumable Fuels 22,110 Enbridge Inc. 1,014 900 2.9 15,474 TC Energy Corporation 895 801 2.6 1,909 1,701 5.5

Professional Services 23,191 Stantec Inc. 759 957 3.1

Road & Rail 6,407 Canadian National Railway Company 671 897 2.9

Software 566 Constellation Software Inc. 497 935 3.0 13,820 Enghouse Systems Limited 696 852 2.7 15,886 Open Text Corporation 722 919 2.9 1,052 Topicus.com, Inc. - 49 0.2 1,915 2,755 8.8

185 MORNINGSTAR STRATEGIC CANADIAN EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO Market Price Risk Essentially all of the assets and liabilities of the Fund are financial instruments. As at December 31, 2020, if the Fund’s benchmark (S&P/TSX Composite Index) These financial instruments comprise the following: increased or decreased by 10%, with all other variables held constant, the net assets of the Fund would have increased or decreased, respectively, by Portfolio by Industry Exposure approximately $3.0 million (December 31, 2019—$3.5 million) or 9.6% DEC. 31 DEC. 31 (December 31, 2019—9.8%) of total net assets. This impact is estimated based 2020 (%) 2019 (%) on the historical correlation between the return of Series I units of the Fund as compared to the return of the Fund’s benchmark(s). In practice, the historical Equities Aerospace & Defense - 3.3 correlation may not be representative of the future correlation and, accordingly, Commercial Banks 14.4 16.2 the impact on net assets could be materially different. Commercial Services & Supplies 3.1 3.4 Containers & Packaging 5.7 3.2 Diversified Financial Services 5.6 6.5 Foreign Currency Risk Diversified Telecommunications Services 2.8 3.2 The Fund’s investments are denominated primarily in Canadian dollars, which are Energy Equipment & Services 5.3 3.2 not subject to the risk of currency movements. Equity Real Estate Investment Trusts (REITs) 2.7 3.3 Food & Staples Retailing 5.8 6.4 Food Products 2.9 - Interest Rate Risk Independent Power And Renewable Electricity Producers 2.9 3.3 The substantial majority of the Fund’s financial assets are equity shares which do Insurance 2.8 3.3 not pay interest. As a result, the Fund is not subject to significant amounts of risk IT Services 3.1 - Machinery 2.9 3.3 due to fluctuations in the prevailing levels of market interest rates at December Media 3.0 3.3 31, 2020 and December 31, 2019. Metals & Mining 4.2 - Multi-Utilities 2.7 3.3 Oil, Gas & Consumable Fuels 5.5 9.8 Credit Risk Professional Services 3.1 3.3 The substantial majority of the Fund’s financial assets are equity shares which do Road & Rail 2.9 6.4 not pay interest. As a result, exposure to credit risk is considered minimal at Software 8.8 6.4 December 31, 2020 and December 31, 2019. Specialty Retail 2.9 3.3 Wireless Telecommunications Services 2.8 3.3 Total financial instruments at fair value 95.9 97.7 Total other assets less liabilities at cost or amortized cost 4.1 2.3 SECURITES LENDING The aggregate market value of all securities loaned by a fund cannot exceed 50% Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 of the net assets of the applicable Fund. The Funds receive collateral of at least 102% of the value of the securities on loan. Collateral may comprise of obligations of or guaranteed by the Government of Canada, or a province thereof, or by the FAIR VALUE MEASUREMENTS United States government or its agencies. Below is a summary of the inputs used as at December 31, 2020 and December As at December 31, 2020 and 2019 the fair value of securities on loan and 31, 2019 in valuing the Fund’s investments carried at fair values. collateral received was $Nil. DECEMBER 31, 2020 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT OFFSETTING OF FINANCIAL INSTRUMENTS MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS The Fund does not enter into any enforceable master netting arrangement. ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 29,867 49 - 29,916 Total Investments 29,867 49 - 29,916

DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Equities 34,965 - - 34,965 Total Investments 34,965 - - 34,965

During the years ended December 31, 2020 and December 31, 2019, there were no signiﬁcant transfers bewteen Level 1 and 2 priced securities.

FINANCIAL INSTRUMENTS RISKS The investment objective of the Morningstar Strategic Canadian Equity Fund is to achieve long-term capital appreciation by investing primarily in equity securities of Canadian issuers.

186 The notes at the back of this document are an integral part of these ﬁnancial statements. SIONNA CANADIAN EQUITY FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 231,916 $ 305,273 Cash 440 510 Receivable for redeemable unit subscriptions 158 302 Receivable from securities sold - 51 Dividends and accrued interest receivable 780 729 233,294 306,865

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 381 334 381 334

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 232,913 $ 306,531 Cost of investments 196,858 261,554

Net assets attributable to holders of redeemable units, Series A $ 119,437 $ 158,643 Number of redeemable units outstanding, Series A 8,303 10,439 Net assets attributable to holders of redeemable units per unit, Series A 14.38 15.20

Net assets attributable to holders of redeemable units, Series D $ 1,865 $ 2,162 Number of redeemable units outstanding, Series D 159 175 Net assets attributable to holders of redeemable units per unit, Series D 11.70 12.33

Net assets attributable to holders of redeemable units, Series F $ 105,045 $ 139,607 Number of redeemable units outstanding, Series F 6,764 8,493 Net assets attributable to holders of redeemable units per unit, Series F 15.53 16.44

Net assets attributable to holders of redeemable units, Series I $ 6,566 $ 6,119 Number of redeemable units outstanding, Series I 396 350 Net assets attributable to holders of redeemable units per unit, Series I 16.57 17.50

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

187 SIONNA CANADIAN EQUITY FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 8,457 $ 9,890 Interest for distribution purposes 29 169 Management Fee Rebates income 232 283 Net realized gain (loss) on sale of investments (13,727) 12,957 Net change in unrealized appreciation (depreciation) of investments (8,661) 33,044 Net gain (loss) on investments (13,670) 56,343

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (1) - Net gain (loss) on derivatives (1) -

Other income 27 140 Net realized gain (loss) on foreign currencies (2) - Net change in unrealized appreciation (depreciation) of foreign currencies 3 (6) Total net income (loss) (13,643) 56,477

EXPENSES (note 6) Management fees 3,466 4,663 Legal - 7 Audit 33 35 Independent review committee 14 15 Custody and fund accounting 99 95 Filing fees 21 21 Unitholder reporting 21 25 Administration and transfer agent fees 451 573 Foreign withholding taxes 12 10 Transaction costs (note 3) 152 69 4,269 5,513 Expenses absorbed (23) - Total expenses net of absorption 4,246 5,513

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (9,140) $ 25,815 Series D (79) 222 Series F (7,427) 23,205 Series I (1,243) 1,722 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (17,889) 50,964

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.98) $ 2.24 Series D (0.46) 1.28 Series F (0.98) 2.59 Series I (3.08) 3.50

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

188 SIONNA CANADIAN EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (9,140) 25,815 (79) 222 (7,427) 23,205

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (1,114) (1,109) (28) (20) (2,420) (2,685) (1,114) (1,109) (28) (20) (2,420) (2,685)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 3,155 5,452 - 2 12,671 10,008 Reinvested distributions to holders of redeemable units 1,107 1,101 28 20 2,366 2,641 Net proceeds/(payments) from/for redeemable units transferred in/(out) (1,053) (3,663) - 2,030 1,053 1,633 Payments for redeemable units redeemed (32,161) (37,182) (218) (240) (40,805) (31,006) (28,952) (34,292) (190) 1,812 (24,715) (16,724)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (39,206) (9,586) (297) 2,014 (34,562) 3,796

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 119,437 $ 158,643 $ 1,865 $ 2,162 $ 105,045 $ 139,607

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 10,438,853 12,774,118 175,367 13,969 8,492,665 9,534,914 Redeemable units issued for cash 230,680 372,513 - 143 869,850 627,533 Redeemable units issued for reinvested distributions 77,291 72,160 2,384 1,595 153,084 159,961 Net redeemable units transferred in/(out) (77,654) (258,446) - 180,034 71,385 104,293 Redeemable units redeemed (2,365,961) (2,521,492) (18,392) (20,374) (2,823,300) (1,934,036) BALANCE, END OF YEAR 8,303,209 10,438,853 159,359 175,367 6,763,684 8,492,665

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (1,243) 1,722 (17,889) 50,964

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (200) (241) (3,762) (4,055) (200) (241) (3,762) (4,055)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 8,115 244 23,941 15,706 Reinvested distributions to holders of redeemable units 200 241 3,701 4,003 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - - - Payments for redeemable units redeemed (6,425) (6,185) (79,609) (74,613) 1,890 (5,700) (51,967) (54,904)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR 447 (4,219) (73,618) (7,995)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 6,566 $ 6,119 $ 232,913 $ 306,531

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 349,633 674,142 Redeemable units issued for cash 466,520 13,778 Redeemable units issued for reinvested distributions 12,097 13,702 Net redeemable units transferred in/(out) - - Redeemable units redeemed (432,002) (351,989) BALANCE, END OF YEAR 396,248 349,633

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

189 SIONNA CANADIAN EQUITY FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (17,889) $ 50,964

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 13,727 (12,957) Net change in unrealized (appreciation) depreciation of investments 8,661 (33,044) Purchase of investments (129,657) (103,247) Proceeds from sale of investments 180,700 156,790 Amortization income (23) (156) 55,519 58,350

CHANGE IN NON-CASH WORKING CAPITAL (51) 353

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 24,085 15,646 Distributions to holders of redeemable units (61) (52) Amounts paid on redemption of redeemable units (79,562) (74,594) (55,538) (59,000)

NET INCREASE (DECREASE) IN CASH (70) (297)

CASH—BEGINNING OF YEAR 510 807

CASH—END OF YEAR 440 510

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 8,394 10,233 Interest 29 169

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

190 SIONNA CANADIAN EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS EQUITIES Specialty Retail Auto Components 111,967 Dollarama Inc. $ 4,335 $ 5,809 2.5 29,366 Magna International Inc. $ 2,105 $ 2,646 1.1 Wireless Telecommunications Services Building Products 165,504 Rogers Communications Inc. Cl. B 10,160 9,808 4.2 127,931 Stella-Jones Inc. 5,420 5,921 2.5 Total Equities 192,161 227,218 97.6 Chemicals 104,358 Methanex Corporation 4,562 6,104 2.6 106,885 Nutrien Ltd. 5,111 6,546 2.8 9,673 12,650 5.4

Commercial Banks 171,377 Royal Bank of Canada 16,549 17,924 7.7 189,712 The Bank of Nova Scotia 10,854 13,052 5.6 243,964 The Toronto-Dominion Bank 10,971 17,546 7.5 38,374 48,522 20.8

Diversiﬁed Financial Services 233,949 Brookﬁeld Asset Management Inc. Cl. A 6,071 12,310 5.3 67,316 IGM Financial Inc. 2,600 2,323 1.0 8,671 14,633 6.3

Diversiﬁed Telecommunications Services 349,832 TELUS Corporation 5,501 8,819 3.8

Electric Utilities 62,967 Brookﬁeld Renewable Partners LP 1,112 3,460 1.5

Energy Equipment & Services 240,990 PrairieSky Royalty, Ltd. 5,411 2,432 1.0

Equity Real Estate Investment Trusts (REITs) 126,839 Allied Properties Real Estate Investment Trust 5,052 4,798 2.1

Food & Staples Retailing 205,901 Alimentation Couche-Tard Inc. Cl. B 5,847 8,932 3.8 57,076 Metro Inc. 2,308 3,242 1.4 8,155 12,174 5.2

Food Products 232,218 Saputo Inc. 9,215 8,274 3.6

Hotels, Restaurants & Leisure 87,822 Restaurant Brands International Inc. 6,327 6,835 2.9

Insurance 12,537 Fairfax Financial Holdings Limited 6,538 5,439 2.3 29,667 Intact Financial Corporation 1,984 4,471 1.9 200,732 Manulife Financial Corporation 4,518 4,547 2.0 13,040 14,457 6.2

IT Services 91,148 CGI Inc. 6,936 9,205 4.0

Metals & Mining 16,904 Franco-Nevada Corporation 3,066 2,698 1.2

Multi-Utilities 62,873 Brookﬁeld Infrastructure Partners LP 2,410 3,960 1.7

Oil, Gas & Consumable Fuels 171,942 Canadian Natural Resources, Ltd. 4,559 5,260 2.3 217,723 Pembina Pipeline Corporation 7,843 6,553 2.8 378,634 Suncor Energy Inc. 9,600 8,084 3.5 200,723 TC Energy Corporation 11,766 10,387 4.5 33,768 30,284 13.1

Road & Rail 89,341 Canadian National Railway Company 8,736 12,502 5.4 16,603 Canadian Paciﬁc Railway Limited 4,694 7,331 3.1 13,430 19,833 8.5

191 SIONNA CANADIAN EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares and face value)

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS SHORT-TERM INVESTMENTS 4,700,000 Government of Canada Treasury Bills 0.14% May 20/2021 $ 4,697 $ 4,698 2.0

Total Investments 196,858 231,916 99.6 Foreign Exchange Contracts (a) - - Other Assets Less Liabilities 997 0.4 Net Assets Attributable to Holders of Redeemable Units 232,913 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 6 USD 4 1.27150 $ - $ - Notes: Counterparty—State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

192 SIONNA CANADIAN EQUITY FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO FINANCIAL INSTRUMENTS RISKS Essentially all of the assets and liabilities of the Fund are financial instruments. The investment objective of the Sionna Canadian Equity Fund is to achieve long- These financial instruments comprise the following: term capital appreciation by investing primarily in the equity securities of Canadian issuers. The Fund may also invest in foreign equity securities. Portfolio by Industry Exposure DEC. 31 DEC. 31 2020 (%) 2019 (%) Market Price Risk As at December 31, 2020, if the Fund’s benchmark (S&P/TSX Composite Index) Equities increased or decreased by 10%, with all other variables held constant, the net Auto Components 1.1 - assets of the Fund would have increased or decreased, respectively, by Building Products 2.5 3.1 Chemicals 5.4 3.8 approximately $22.5 million (December 31, 2019—$30.6 million), or 9.7% Commercial Banks 20.8 18.9 (December 31, 2019—10.0%) of total net assets. This impact is estimated based Diversified Financial Services 6.3 9.1 on the historical correlation between the return of Series I units of the Fund as Diversified Telecommunications Services 3.8 3.0 compared to the return of the Fund’s benchmark(s). In practice, the historical Electric Utilities 1.5 2.8 correlation may not be representative of the future correlation and, accordingly, Energy Equipment & Services 1.0 3.0 the impact on net assets could be materially different. Equity Real Estate Investment Trusts (REITs) 2.1 - Food & Staples Retailing 5.2 6.7 Food Products 3.6 3.7 Foreign Currency Risk Hotels, Restaurants & Leisure 2.9 2.1 Currency risk arises from financial instruments that are denominated in a Insurance 6.2 12.3 IT Services 4.0 1.5 currency other than the Canadian dollar, which is the Fund’s functional currency. Machinery - 2.9 The Fund is exposed to the risk that the value of securities denominated in other Media - 2.1 currencies will fluctuate due to changes in exchange rates. Metals & Mining 1.2 - Multi-Utilities 1.7 2.7 The tables below indicate the currencies to which the Fund had significant Oil, Gas & Consumable Fuels 13.1 14.7 exposure on its financial instruments as at December 31, 2020 and December Road & Rail 8.5 4.1 31, 2019 in Canadian dollar terms including the underlying principal of forward Specialty Retail 2.5 1.6 exchange contracts, if any. Wireless Telecommunications Services 4.2 - Short-term investments 2.0 1.5 DECEMBER 31, 2020 Total investments 99.6 99.6 INVESTMENTS CASH OTHER NET TOTAL Foreign exchange contracts, net - - CURRENCY ($000) ($000) ASSETS ($000) ($000) Total financial instruments at fair value 99.6 99.6 Euro - - 31 31 Total other assets less liabilities at cost or amortized cost 0.4 0.4 Swiss Franc - - 3 3 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 U.S. Dollar - 6 114 120 Total - 6 148 154 % of Net Assets - - 0.1 0.1 FAIR VALUE MEASUREMENTS Below is a summary of the inputs used as at December 31, 2020 and December 31, 2019 in valuing the Fund’s investments carried at fair values. DECEMBER 31, 2019 INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) DECEMBER 31, 2020 QUOTED PRICES SIGNIFICANT Euro - - 30 30 IN ACTIVE OTHER SIGNIFICANT Swiss Franc - 3 6 9 MARKETS FOR OBSERVABLE UNOBSERVABLE U.S. Dollar - 85 (15) 70 IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Total - 88 21 109 ($000) ($000) ($000) ($000) % of Net Assets - - - - Equities 227,218 - - 227,218 Short-term As at December 31, 2020, if the Canadian dollar had strengthened or weakened investments - 4,698 - 4,698 by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all Total Investments 227,218 4,698 - 231,916 other variables held constant, the Fund’s net assets would have decreased or Foreign Exchange increased, respectively, by approximately $Nil million (December 31, 2019—$Nil Contracts, Net - - - - million), or Nil% (December 31, 2019—Nil%) of total net assets. In practice, the actual results may differ from this sensitivity analysis and the difference could be material. DECEMBER 31, 2019 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT Interest Rate Risk MARKETS FOR OBSERVABLE UNOBSERVABLE The substantial majority of the Fund’s financial assets are equity shares which do IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL not pay interest. As a result, the Fund is not subject to significant amounts of risk ($000) ($000) ($000) ($000) due to fluctuations in the prevailing levels of market interest rates. Equities 300,767 - - 300,767 Short-term investments - 4,506 - 4,506 Credit Risk The Fund enters into foreign exchange contracts to buy and sell currencies for the Total Investments 300,767 4,506 - 305,273 purpose of settling foreign securities transactions. These are short term spot Foreign Exchange settlements carried out with approved counterparties. The exposure to credit risk Contracts, Net - - - - on these contracts is considered minimal as the transactions are settled and paid for upon delivery. During the years ended December 31, 2020 and December 31, 2019, there were no significant transfers between Level 1 and 2 priced securities.

The notes at the back of this document are an integral part of these ﬁnancial statements. 193 SIONNA CANADIAN EQUITY FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

As at December 31, 2020 and 2019 the fair value of securities on loan and collateral received was $Nil.

OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement.

194 The notes at the back of this document are an integral part of these ﬁnancial statements. SIONNA OPPORTUNITIES FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 62,580 $ 71,973 Cash 120 210 Receivable for redeemable unit subscriptions 54 33 Receivable from securities sold - 147 Dividends and accrued interest receivable 203 124 62,957 72,487

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 58 44 58 44

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 62,899 $ 72,443 Cost of investments 57,928 64,131

Net assets attributable to holders of redeemable units, Series A $ 29,586 $ 33,731 Number of redeemable units outstanding, Series A 2,197 2,429 Net assets attributable to holders of redeemable units per unit, Series A 13.47 13.89

Net assets attributable to holders of redeemable units, Series F $ 33,219 $ 38,617 Number of redeemable units outstanding, Series F 2,353 2,682 Net assets attributable to holders of redeemable units per unit, Series F 14.12 14.40

Net assets attributable to holders of redeemable units, Series I $ 94 $ 95 Number of redeemable units outstanding, Series I 6 6 Net assets attributable to holders of redeemable units per unit, Series I 15.80 15.91

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

195 SIONNA OPPORTUNITIES FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 1,163 $ 1,122 Interest for distribution purposes 25 41 Management Fee Rebates income 61 63 Net realized gain (loss) on sale of investments 674 2,044 Net change in unrealized appreciation (depreciation) of investments (3,190) 7,792 Net gain (loss) on investments (1,267) 11,062

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (13) (32) Net gain (loss) on derivatives (13) (32)

Other income 68 3 Net realized gain (loss) on foreign currencies (15) 17 Net change in unrealized appreciation (depreciation) of foreign currencies 1 (2) Total net income (loss) (1,226) 11,048

EXPENSES (note 6) Management fees 958 942 Legal - 1 Audit 9 8 Independent review committee 4 3 Custody and fund accounting 28 21 Filing fees 20 21 Unitholder reporting 6 8 Administration and transfer agent fees 127 144 Foreign withholding taxes 53 53 Transaction costs (note 3) 45 16 1,250 1,217 Expenses absorbed (20) (33) Total expenses net of absorption 1,230 1,184

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (1,037) $ 4,249 Series F (1,418) 5,608 Series I (1) 7 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (2,456) 9,864

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.44) $ 1.97 Series F (0.57) 2.20 Series I (0.11) 1.86

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

196 SIONNA OPPORTUNITIES FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (1,037) 4,249 (1,418) 5,608 (1) 7

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Return of capital (20) (18) (40) (43) - - (20) (18) (40) (43) - -

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 2,960 14,291 4,809 15,974 - 88 Reinvested distributions to holders of redeemable units 20 18 40 43 - - Net proceeds/(payments) from/for redeemable units transferred in/(out) (258) (488) 258 488 - - Payments for redeemable units redeemed (5,810) (3,211) (9,047) (7,209) - - (3,088) 10,610 (3,940) 9,296 - 88

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (4,145) 14,841 (5,398) 14,861 (1) 95

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 29,586 $ 33,731 $ 33,219 $ 38,617 $ 94 $ 95

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 2,428,964 1,609,775 2,682,346 1,974,502 6,014 30 Redeemable units issued for cash 246,820 1,101,436 375,979 1,201,083 - 5,984 Redeemable units issued for reinvested distributions 1,611 1,403 3,073 3,185 - - Net redeemable units transferred in/(out) (19,957) (37,463) 19,128 36,277 - - Redeemable units redeemed (460,275) (246,187) (727,534) (532,701) - - BALANCE, END OF YEAR 2,197,163 2,428,964 2,352,992 2,682,346 6,014 6,014

Amounts in thousands (except for number of units) For the years ended December 31, FUND TOTAL 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ 72,443 $ 42,646

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (2,456) 9,864

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Return of capital (60) (61) (60) (61)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 7,769 30,353 Reinvested distributions to holders of redeemable units 60 61 Net proceeds/(payments) from/for redeemable units transferred in/(out) - - Payments for redeemable units redeemed (14,857) (10,420) (7,028) 19,994

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (9,544) 29,797

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 62,899 $ 72,443

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

197 SIONNA OPPORTUNITIES FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (2,456) $ 9,864

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments (674) (2,044) Net change in unrealized (appreciation) depreciation of investments 3,190 (7,792) Purchase of investments (38,233) (25,286) Proceeds from sale of investments 45,276 21,619 Amortization income (19) (43) 7,084 (3,682)

CHANGE IN NON-CASH WORKING CAPITAL (79) (61)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 7,748 14,412 Amounts paid on redemption of redeemable units (14,843) (10,501) (7,095) 3,911

NET INCREASE (DECREASE) IN CASH (90) 168

CASH—BEGINNING OF YEAR 210 42

CASH—END OF YEAR 120 210

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 1,031 1,008 Interest 25 41 Non-cash purchases arising from fund mergers - 16,082 SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO FINANCING ACTIVITIES Non-cash proceeds from issuance of redeemable units arising from fund mergers - 16,082

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

198 SIONNA OPPORTUNITIES FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares and face value)

NUMBER AVERAGE FAIR % OF NET NUMBER AVERAGE FAIR % OF NET OF SHARES SECURITY COST VALUE ASSETS OF SHARES SECURITY COST VALUE ASSETS EQUITIES Specialty Retail Automobiles 6,060 Ulta Beauty, Inc. $ 1,829 $ 2,216 3.5 11,494 CarMax, Inc. $ 1,042 $ 1,383 2.2 Textiles, Apparel & Luxury Goods Beverages 53,012 Tapestry, Inc. 1,515 2,098 3.3 722,954 Ambev SA ADR 3,619 2,817 4.5 10,333 Diageo PLC ADR 1,972 2,090 3.3 Total Equities 55,729 60,381 96.0 5,591 4,907 7.8

Commercial Banks 40,625 Wells Fargo & Company 2,399 1,561 2.5

Containers & Packaging FACE AVERAGE FAIR % OF NET 51,866 Winpak, Ltd. 2,240 2,221 3.5 VALUE SECURITY COST VALUE ASSETS SHORT-TERM INVESTMENTS Diversified Financial Services 2,200,000 Government of Canada Treasury Bills 12,004 Berkshire Hathaway Inc. Cl. B 2,994 3,545 5.7 0.13% May 20/2021 $ 2,199 $ 2,199 3.5 77,985 Brookfield Asset Management Inc. Cl. A 2,896 4,104 6.5 4,002 Moodys Corporation 848 1,479 2.4 6,738 9,128 14.6 Total Investments 57,928 62,580 99.5 Other Assets Less Liabilities 319 0.5 Diversified Telecommunications Services 110,177 TELUS Corporation 2,638 2,778 4.4 Net Assets Attributable to Holders of Redeemable Units 62,899 100.0 Electrical Equipment 7,134 IPG Photonics Corporation 1,452 2,033 3.2

Electronic Equipment, Instruments & Components 10,145 PerkinElmer Inc. 1,051 1,854 2.9

Food & Staples Retailing 61,981 Alimentation Couche-Tard Inc. Cl. B 2,129 2,689 4.3 22,823 Metro Inc. 1,031 1,296 2.1 55,854 Walgreens Boots Alliance, Inc. 3,725 2,837 4.5 6,885 6,822 10.9

Health Care Providers & Services 30,140 Fresenius Medical Care AG & Co. KGaA ADR 1,623 1,595 2.5

Hotels, Restaurants & Leisure 26,273 Restaurant Brands International Inc. 1,955 2,045 3.3

Insurance 4,400 Fairfax Financial Holdings Limited 2,748 1,909 3.0

Interactive Media & Services 646 Alphabet Inc. Cl. C 1,031 1,441 2.3

IT Services 18,572 Tucows Inc. Cl. A 1,409 1,754 2.8

Machinery 52,683 Badger Daylighting, Ltd. 1,768 2,004 3.2

Multiline Retail 4,543 Dollar General Corp. 722 1,217 1.9

Multi-Utilities 40,960 Brookﬁeld Infrastructure Partners LP 1,874 2,580 4.1

Oil, Gas & Consumable Fuels 36,634 Canadian Natural Resources, Ltd. 1,221 1,120 1.8 50,451 TC Energy Corporation 3,006 2,611 4.2 4,227 3,731 6.0

Real Estate Management & Development 14,904 The Howard Hughes Corporation 1,791 1,498 2.4

Road & Rail 18,819 Canadian National Railway Company 1,989 2,634 4.2

Software 199,239 Computer Modelling Group, Ltd. 1,212 972 1.5

199 SIONNA OPPORTUNITIES FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

SUMMARY OF INVESTMENT PORTFOLIO DECEMBER 31, 2019 Essentially all of the assets and liabilities of the Fund are financial instruments. QUOTED PRICES SIGNIFICANT These financial instruments comprise the following: IN ACTIVE OTHER SIGNIFICANT MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS Portfolio by Industry Exposure ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL DEC. 31 DEC. 31 ($000) ($000) ($000) ($000) 2020 (%) 2019 (%) Equities 69,333 - - 69,333 Short-term Equities investments - 2,640 - 2,640 Automobiles 2.2 3.4 Beverages 7.8 7.7 Total Investments 69,333 2,640 - 71,973 Chemicals - 2.0 Foreign Exchange Commercial Banks 2.5 2.9 Contracts, Net - - - - Containers & Packaging 3.5 3.5 Diversified Financial Services 14.6 13.9 Diversified Telecommunications Services 4.4 - Bridgehouse Asset Managers subscribes to the services of a third-party valuation Electrical Equipment 3.2 3.1 service provider to provide fair value adjustments, where applicable, to the prices Electronic Equipment, Instruments & Components 2.9 - of foreign securities due to changes in the value of securities in North American Energy Equipment & Services - 2.5 markets following the closure of the foreign markets. The parameters used to Food & Staples Retailing 10.9 11.3 apply the fair value adjustments are based on observable market data, and as Health Care Providers & Services 2.5 - such, the foreign securities are considered Level 2 priced securities. Hotels, Restaurants & Leisure 3.3 2.3 Insurance 3.0 3.4 During the years ended December 31, 2020 and December 31, 2019, there were Interactive Media & Services 2.3 3.5 no significant transfers between Level 1 and 2 priced securities. IT Services 2.8 3.1 Machinery 3.2 3.5 Media - 3.8 Multiline Retail 1.9 2.1 FINANCIAL INSTRUMENTS RISKS Multi-Utilities 4.1 5.0 The fundamental investment objective of the Sionna Opportunities Fund is to Oil, Gas & Consumable Fuels 6.0 2.7 achieve long-term capital appreciation by investing primarily in the equity Real Estate Management & Development 2.4 7.5 securities of Canadian issuers. The Fund may also invest in foreign Road & Rail 4.2 - Software 1.5 2.6 equity securities. Specialty Retail 3.5 2.5 Textiles, Apparel & Luxury Goods 3.3 3.4 Short-term investments 3.5 3.7 Market Price Risk As at December 31, 2020, if the Fund's benchmark (50% S&P/TSX Composite Total investments 99.5 99.4 Foreign exchange contracts, net - - Index and 50% S&P 500 Index) increased or decreased by 10%, with all other variables held constant, the net assets of the Fund would have increased or Total financial instruments at fair value 99.5 99.4 Total other assets less liabilities at cost or amortized cost 0.5 0.6 decreased, respectively, by approximately $5.8 million (December 31, 2019—$6.1 million), or 9.2% (December 31, 2019—8.4%) of total net assets. Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 This impact is estimated based on the historical correlation between the return of Series I units of the Fund as compared to the return of the Fund’s benchmark(s). In practice, the historical correlation may not be representative of the future Portfolio by Country Exposure correlation and, accordingly, the impact on net assets could be DEC. 31 DEC. 31 materially different. 2020 (%) 2019 (%) Equities Brazil 4.5 3.5 Foreign Currency Risk Canada 48.9 51.6 The tables below indicate the currencies to which the Fund had significant Germany 2.5 - exposure on its financial instruments as at December 31, 2020 and December United Kingdom 3.3 4.2 31, 2019 in Canadian dollar terms, including the underlying principal of forward United States 36.8 36.4 exchange contracts, if any. Short-term investments 3.5 3.7 Total investments 99.5 99.4 DECEMBER 31, 2020 Foreign exchange contracts, net - - INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) Total financial instruments at fair value 99.5 99.4 Total other assets less liabilities at cost or amortized cost 0.5 0.6 U.S. Dollar 29,665 - 90 29,755 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 Total 29,665 - 90 29,755 % of Net Assets 47.2 - 0.1 47.3

FAIR VALUE MEASUREMENTS DECEMBER 31, 2019 Below is a summary of the inputs used as at December 31, 2020 and December INVESTMENTS CASH OTHER NET TOTAL 31, 2019 in valuing the Fund’s investments carried at fair values. CURRENCY ($000) ($000) ASSETS ($000) ($000)

DECEMBER 31, 2020 U.S. Dollar 31,928 - 64 31,992 QUOTED PRICES SIGNIFICANT Total 31,928 - 64 31,992 IN ACTIVE OTHER SIGNIFICANT % of Net Assets 44.1 - 0.1 44.2 MARKETS FOR OBSERVABLE UNOBSERVABLE IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL As at December 31, 2020, if the Canadian dollar had strengthened or weakened ($000) ($000) ($000) ($000) by 2% (December 31, 2019—2%) in relation to all foreign currencies, with all Equities 60,381 - - 60,381 other variables held constant, the Fund’s net assets would have increased or Short-term decreased, respectively, by approximately $0.6 million (December 31, investments - 2,199 - 2,199 2019—$0.6 million), or 0.9% (December 31, 2019—0.9%) of total net assets. In Total Investments 60,381 2,199 - 62,580 practice, the actual results may differ from this sensitivity analysis and the difference could be material.

200 The notes at the back of this document are an integral part of these ﬁnancial statements. SIONNA OPPORTUNITIES FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

As at December 31, 2020 and 2019 the fair value of securities on loan and collateral received was $Nil.

OFFSETTING OF FINANCIAL INSTRUMENTS The Fund does not enter into any enforceable master netting arrangement.

The notes at the back of this document are an integral part of these ﬁnancial statements. 201 SIONNA STRATEGIC INCOME FUND STATEMENTS OF FINANCIAL POSITION

Amounts in thousands (except for per unit amounts); All amounts expressed in Canadian dollars, unless otherwise noted As at December 31, 2020 2019

ASSETS CURRENT ASSETS Investments $ 108,917 $ 136,964 Cash 1,364 1,370 Receivable for redeemable unit subscriptions 167 63 Receivable from securities sold - 278 Dividends and accrued interest receivable 337 295 110,785 138,970

LIABILITIES CURRENT LIABILITIES Payable for redeemable unit redemptions 125 98 125 98

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 110,660 $ 138,872 Cost of investments 107,533 132,782

Net assets attributable to holders of redeemable units, Series A $ 89,790 $ 113,428 Number of redeemable units outstanding, Series A 5,655 6,664 Net assets attributable to holders of redeemable units per unit, Series A 15.88 17.02

Net assets attributable to holders of redeemable units, Series F $ 19,851 $ 24,443 Number of redeemable units outstanding, Series F 1,165 1,360 Net assets attributable to holders of redeemable units per unit, Series F 17.04 17.97

Net assets attributable to holders of redeemable units, Series I $ 1,019 $ 1,001 Number of redeemable units outstanding, Series I 55 52 Net assets attributable to holders of redeemable units per unit, Series I 18.48 19.11

Approved on behalf of Brandes Investment Partners & Co. (Fund Manager)

Carol Lynde Oliver Murray Director Director

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

202 SIONNA STRATEGIC INCOME FUND STATEMENTS OF COMPREHENSIVE INCOME

Amounts in thousands (except for per unit amounts) For the years ended December 31, 2020 2019

INCOME NET GAIN (LOSS) ON INVESTMENTS Dividends $ 3,401 $ 3,240 Interest for distribution purposes 18 41 Income distributions received from underlying funds 940 1,015 Management Fee Rebates income 151 126 Net realized gain (loss) on sale of investments (1,087) 6,387 Net change in unrealized appreciation (depreciation) of investments (2,798) 2,423 Net gain (loss) on investments 625 13,232

NET GAIN (LOSS) ON DERIVATIVES Net realized gain (loss) on foreign exchange contracts (8) (29) Net gain (loss) on derivatives (8) (29)

Securities lending - 2 Other income 46 199 Net realized gain (loss) on foreign currencies 31 14 Net change in unrealized appreciation (depreciation) of foreign currencies 5 (11) Total net income (loss) 699 13,407

EXPENSES (note 6) Management fees 2,089 2,072 Legal - 3 Audit 16 17 Independent review committee 7 7 Custody and fund accounting 50 37 Filing fees 20 20 Unitholder reporting 10 20 Other expenses - 4 Administration and transfer agent fees 228 337 Foreign withholding taxes 145 133 Transaction costs (note 3) 48 58 2,613 2,708 Expenses absorbed (13) (128) Total expenses net of absorption 2,600 2,580

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS Series A $ (1,719) $ 7,580 Series F (201) 1,792 Series I 19 92 Series AN - 1,123 Series FN - 240 TOTAL INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (1,901) 10,827

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Series A $ (0.28) $ 1.43 Series F (0.16) 1.66 Series I 0.36 2.19 Series AN - 1.68 Series FN - 1.57

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

203 SIONNA STRATEGIC INCOME FUND STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS (1,719) 7,580 (201) 1,792 19 92

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income (1,560) (1,266) (622) (518) (34) (25) Return of capital (4,750) (3,522) (671) (505) (16) (10) (6,310) (4,788) (1,293) (1,023) (50) (35)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued 4,171 78,153 1,110 18,237 - 501 Reinvested distributions to holders of redeemable units 5,545 4,249 999 812 49 34 Net proceeds/(payments) from/for redeemable units transferred in/(out) (872) 13,532 872 4,053 - - Payments for redeemable units redeemed (24,453) (19,610) (6,079) (5,740) - - (15,609) 76,324 (3,098) 17,362 49 535

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR (23,638) 79,116 (4,592) 18,131 18 592

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ 89,790 $ 113,428 $ 19,851 $ 24,443 $ 1,019 $ 1,001

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year 6,664,076 2,178,934 1,360,426 383,302 52,377 23,721 Redeemable units issued for cash 267,357 4,604,935 63,422 1,027,794 - 26,844 Redeemable units issued for reinvested distributions 363,974 253,397 61,653 46,142 2,774 1,812 Net redeemable units transferred in/(out) (55,081) 795,334 51,773 228,326 - - Redeemable units redeemed (1,585,138) (1,168,524) (372,642) (325,138) - - BALANCE, END OF YEAR 5,655,188 6,664,076 1,164,632 1,360,426 55,151 52,377

Amounts in thousands (except for number of units) For the years ended December 31, SERIES AN SERIES FN FUND TOTAL 2020 2019 2020 2019 2020 2019 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, BEGINNING OF YEAR $ $- 14,297 $ $- 2,903 $ 138,872 $ 58,233

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS - 1,123 - 240 (1,901) 10,827

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS Distribution from net investment income - (8) - (9) (2,216) (1,826) Return of capital - - - - (5,437) (4,037) - (8) - (9) (7,653) (5,863)

CAPITAL TRANSACTIONS Proceeds from redeemable units issued - 135 - 35 5,281 97,061 Reinvested distributions to holders of redeemable units - 8 - 9 6,593 5,112 Net proceeds/(payments) from/for redeemable units transferred in/(out) - (14,579) - (3,006) - - Payments for redeemable units redeemed - (976) - (172) (30,532) (26,498) - (15,412) - (3,134) (18,658) 75,675

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FOR THE YEAR - (14,297) - (2,903) (28,212) 80,639

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS, END OF YEAR $ $- - $ $- - $ 110,660 $ 138,872

REDEEMABLE UNITHOLDERS' EQUITY REDEEMABLE UNITS ISSUED AND OUTSTANDING Balance, beginning of year - 904,507 - 174,476 Redeemable units issued for cash - 8,103 - 1,996 Redeemable units issued for reinvested distributions - 488 - 510 Net redeemable units transferred in/(out) - (854,462) - (167,191) Redeemable units redeemed - (58,636) - (9,791) BALANCE, END OF YEAR - - - -

The accompanying notes are an integral part of these ﬁnancial statements. 204 SIONNA STRATEGIC INCOME FUND STATEMENTS OF CASH FLOWS

Amounts in thousands For the years ended December 31, 2020 2019

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS $ (1,901) $ 10,827

ADJUSTMENTS FOR: Net realized (gain) loss on sale of investments 1,087 (6,387) Unrealized (appreciation) depreciation on foreign cash - 2 Net change in unrealized (appreciation) depreciation of investments 2,798 (2,423) Reinvested distributions from underlying funds (940) (1,015) Purchase of investments (41,289) (50,285) Proceeds from sale of investments 66,683 61,356 Amortization income (14) (35) 26,424 12,040

CHANGE IN NON-CASH WORKING CAPITAL (42) (178)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of redeemable units 5,177 16,031 Distributions to holders of redeemable units (1,060) (751) Amounts paid on redemption of redeemable units (30,505) (26,440) (26,388) (11,160) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON CASH - (2)

NET INCREASE (DECREASE) IN CASH (6) 700

CASH—BEGINNING OF YEAR 1,370 670

CASH—END OF YEAR 1,364 1,370

SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO OPERATING ACTIVITIES Dividends, net of foreign withholding taxes 3,214 2,927 Interest 18 43 Non-cash purchases arising from fund mergers - 80,997 SUPPLEMENTAL CASH FLOW INFORMATION RELATING TO FINANCING ACTIVITIES Non-cash amounts paid on redemption of redeemable units arising from fund mergers - 80,997

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

205 SIONNA STRATEGIC INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 Amounts in thousands (except for number of shares/units and face value)

NUMBER OF AVERAGE FAIR % OF NET NUMBER OF AVERAGE FAIR % OF NET SHARES/UNIT SECURITY COST VALUE ASSETS SHARES/UNIT SECURITY COST VALUE ASSETS EQUITIES Food Products Aerospace & Defense 4,346 Ingredion Incorporated $ 420 $ 436 0.4 2,153 General Dynamics Corporation $ 389 $ 408 0.4 48,367 Saputo Inc. 1,978 1,723 1.6 2,398 2,159 2.0 Auto Components 5,928 Magna International Inc. 482 534 0.5 Health Care Providers & Services 10,117 Cardinal Health, Inc. 673 690 0.6 Automobiles 5,871 CVS Health Corporation 470 511 0.5 16,600 Honda Motor Co., Ltd. 624 589 0.5 1,143 1,201 1.1

Beverages Hotels, Restaurants & Leisure 51,502 Andrew Peller Limited Cl. A 534 540 0.5 327,200 Genting Berhad 606 462 0.4 6,134 Coca-Cola FEMSA, SAB de CV ADR 340 360 0.3 120,922 Pizza Pizza Royalty Corp. 1,200 1,112 1.0 1,143 PepsiCo, Inc. 196 216 0.2 30,271 Restaurant Brands International Inc. 2,458 2,356 2.1 1,070 1,116 1.0 4,264 3,930 3.5

Building Products Insurance 31,577 Stella-Jones Inc. 1,362 1,461 1.3 3,274 Fairfax Financial Holdings Limited 1,895 1,420 1.3 41,726 Fairfax Financial Holdings Limited Capital Markets Series C 4.71% Preferred 761 722 0.7 5,643 State Street Corporation 509 523 0.5 12,570 Intact Financial Corporation 1,341 1,894 1.7 8,186 The Bank of New York 43,116 Manulife Financial Corporation 970 977 0.9 Mellon Corporation 510 443 0.4 19,465 Old Republic International Corporation 426 489 0.4 44,416 UBS Group AG 797 796 0.7 3,963 Swiss Re AG 461 475 0.4 1,816 1,762 1.6 5,854 5,977 5.4

Chemicals Media 4,266 BASF SE 256 429 0.4 7,656 Comcast Corporation Cl. A 414 511 0.5 23,877 Methanex Corporation 993 1,397 1.3 13,835 Publicis Groupe SA 907 877 0.8 1,249 1,826 1.7 72,418 WPP PLC 1,144 1,008 0.9 2,465 2,396 2.2 Commercial Banks 34,546 Credit Suisse Group AG 604 566 0.5 Multi-Utilities 37,088 Royal Bank of Canada 3,720 3,879 3.5 36,318 Brookfield Infrastructure Partners LP 1,655 2,287 2.1 46,386 The Bank of Nova Scotia 3,166 3,191 2.9 46,372 Engie SA 923 903 0.8 1,695 The PNC Financial Services Group, Inc. 312 322 0.3 2,578 3,190 2.9 49,028 The Toronto-Dominion Bank 3,309 3,526 3.2 8,493 Truist Financial Corporation 506 519 0.4 Oil, Gas & Consumable Fuels 17,327 Wells Fargo & Company 1,059 666 0.6 163,167 BP PLC 1,278 724 0.6 12,676 12,669 11.4 37,425 Canadian Natural Resources, Ltd. 1,091 1,145 1.0 40,784 Eni SPA 923 542 0.5 Communications Equipment 50,204 Pembina Pipeline Corporation 2,099 1,511 1.4 69,924 Nokia OYJ 482 343 0.3 52,410 Suncor Energy Inc. 1,508 1,119 1.0 44,081 TC Energy Corporation 2,760 2,281 2.1 Diversified Financial Services 14,386 Total SE 966 790 0.7 9,253 Citigroup Inc. 878 727 0.7 10,625 8,112 7.3 31,601 IGM Financial Inc. 1,125 1,090 1.0 2,354 JPMorgan Chase & Co. 310 381 0.3 Pharmaceuticals 2,313 2,198 2.0 36,389 GlaxoSmithKline PLC 998 850 0.8 3,420 Johnson & Johnson 652 685 0.6 Diversified Telecommunications Services 7,004 Merck & Co., Inc. 752 730 0.7 48,800 Telefonica Brasil SA 682 556 0.5 14,748 Pfizer Inc. 820 691 0.6 105,782 TELUS Corporation 2,487 2,667 2.4 7,777 Sanofi 908 952 0.9 3,169 3,223 2.9 5,900 Takeda Pharmaceutical Company Limited 282 273 0.2 Electric Utilities 4,412 4,181 3.8 51,522 Brookfield Renewable Partners LP 1,009 2,831 2.6 4,394,017 Enel Chile SA 534 435 0.4 Road & Rail 1,543 3,266 3.0 16,665 Canadian National Railway Company 1,783 2,332 2.1

Electrical Equipment Software 4,221 Emerson Electric Co. 403 432 0.4 124,352 Computer Modelling Group, Ltd. 742 607 0.5 2,379 Schneider Electric SE 266 438 0.4 669 870 0.8 Specialty Retail 146,996 Kingﬁsher PLC 661 692 0.6 Equity Real Estate Investment Trusts (REITs) 28,601 Allied Properties Real Estate Technology Hardware, Storage & Peripherals Investment Trust 1,151 1,082 1.0 9,002 Samsung Electronics Co., Ltd. Preferred 382 777 0.7 545,559 Fibra Uno Administracion SA de CV 1,042 786 0.7 2,193 1,868 1.7 Tobacco 9,585 British American Tobacco PLC 467 452 0.4 Food & Staples Retailing 29,786 Imperial Brands PLC 1,146 796 0.7 138,227 J Sainsbury PLC 537 543 0.5 5,116 KT&G Corporation 576 498 0.4 13,698 Metro Inc. 684 778 0.7 2,189 1,746 1.5 110,823 Tesco PLC 484 446 0.4 94,777 WM Morrison Supermarkets PLC 361 293 0.3 2,066 2,060 1.9

206 SIONNA STRATEGIC INCOME FUND

SCHEDULE OF INVESTMENT PORTFOLIO AS AT DECEMBER 31, 2020 (CONTINUED) Amounts in thousands (except for number of shares/units and face value)

NUMBER OF AVERAGE FAIR % OF NET SHARES/UNIT SECURITY COST VALUE ASSETS Wireless Telecommunications Services 43,500 China Mobile Limited $ 553 $ 316 0.3 36,231 Rogers Communications Inc. Cl. B 2,281 2,147 1.9 2,834 2,463 2.2

Total Equities 74,433 73,956 66.8

Mutual Funds 1,359,634 Brandes Corporate Focus Bond Fund Series IH 10,734 11,063 10.0 1,970,327 Bridgehouse Canadian Bond Fund Series I 20,167 21,699 19.6 Total Mutual Funds 30,901 32,762 29.6

FACE AVERAGE FAIR % OF NET VALUE SECURITY COST VALUE ASSETS SHORT-TERM INVESTMENTS 2,200,000 Government of Canada Treasury Bills 0.13% May 20/2021 $ 2,199 $ 2,199 2.0

Total Investments 107,533 108,917 98.4 Foreign Exchange Contracts (a) - - Other Assets Less Liabilities 1,743 1.6 Net Assets Attributable to Holders of Redeemable Units 110,660 100.0

(a) Foreign Exchange Contracts SETTLEMENT PURCHASED SOLD CONTRACT UNREALIZED DATE CURRENCY CURRENCY PRICE GAIN (LOSS) Jan 4, 2021 CAD 26 GBP 15 1.73743 $ - Jan 4, 2021 CAD 1 USD 1 1.27150 - $ - Notes: Counterparty—State Street Trust Company Canada; Rating AA-; Source—Standard & Poor's Credit Rating Agency

207 SIONNA STRATEGIC INCOME FUND

FUND SPECIFIC NOTES The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Portfolio by Industry Exposure DECEMBER 31, 2020 DEC. 31 DEC. 31 QUOTED PRICES SIGNIFICANT IN ACTIVE OTHER SIGNIFICANT 2020 (%) 2019 (%) MARKETS FOR OBSERVABLE UNOBSERVABLE Equities IDENTICAL INPUTS INPUTS ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL Aerospace & Defense 0.4 - ($000) ($000) ($000) ($000) Auto Components 0.5 - Automobiles 0.5 0.5 Equities 73,956 - - 73,956 Beverages 1.0 0.2 Mutual Funds 32,762 - - 32,762 Building Products 1.3 1.4 Short-term Capital Markets 1.6 2.6 investments - 2,199 - 2,199 Chemicals 1.7 0.9 Total Investments 106,718 2,199 - 108,917 Commercial Banks 11.4 9.4 Communications Equipment 0.3 0.3 Foreign Exchange Diversified Financial Services 2.0 4.3 Contracts, Net - - - - Diversified Telecommunications Services 2.9 2.8 Electric Utilities 3.0 2.9 Electrical Equipment 0.8 1.0 DECEMBER 31, 2019 Energy Equipment & Services - 2.5 QUOTED PRICES SIGNIFICANT Equity Real Estate Investment Trusts (REITs) 1.7 1.2 IN ACTIVE OTHER SIGNIFICANT Food & Staples Retailing 1.9 1.8 MARKETS FOR OBSERVABLE UNOBSERVABLE Food Products 2.0 1.7 IDENTICAL INPUTS INPUTS Health Care Providers & Services 1.1 1.2 ASSETS (LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL ($000) ($000) ($000) ($000) Hotels, Restaurants & Leisure 3.5 2.9 Insurance 5.4 6.5 Equities 93,135 - - 93,135 Machinery - 1.2 Mutual Funds 40,875 - - 40,875 Media 2.2 2.6 Short-term Multiline Retail - 0.2 investments - 2,954 - 2,954 Multi-Utilities 2.9 3.2 Total Investments 134,010 2,954 - 136,964 Oil, Gas & Consumable Fuels 7.3 7.9 Pharmaceuticals 3.8 3.6 Foreign Exchange Road & Rail 2.1 - Contracts, Net - - - - Semiconductors & Semiconductor Equipment - 0.6 Software 0.5 1.3 Bridgehouse Asset Managers subscribes to the services of a third-party valuation Specialty Retail 0.6 0.7 service provider to provide fair value adjustments, where applicable, to the prices Technology Hardware, Storage & Peripherals 0.7 - of foreign securities due to changes in the value of securities in North American Tobacco 1.5 1.3 markets following the closure of the foreign markets. The parameters used to Wireless Telecommunications Services 2.2 0.4 Mutual Funds 29.6 29.4 apply the fair value adjustments are based on observable market data, and as Short-term investments 2.0 2.1 such, the foreign securities are considered Level 2 priced securities. Total investments 98.4 98.6 During the years ended December 31, 2020 and December 31, 2019, there were Foreign exchange contracts, net - - no significant transfers bewteen Level 1 and 2 priced securities. Total financial instruments at fair value 98.4 98.6 Total other assets less liabilities at cost or amortized cost 1.6 1.4 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0 FINANCIAL INSTRUMENTS RISKS The investment objective of the Sionna Strategic Income Fund (formerly Sionna Canadian Balanced Fund) is to achieve long-term capital appreciation and Portfolio by Country Exposure income by investing primarily in the equity securities of both Canadian companies DEC. 31 DEC. 31 and high-quality Canadian government and corporate fixed-income securities. 2020 (%) 2019 (%) The Fund may also invest in foreign companies and high-quality U.S. government Equities and corporate fixed-income securities. Allocations vary from time to time, but Brazil 0.5 0.9 have historically been in the range of 40 to 45% Canadian Equity, 30 to 35% Canada 61.9 61.8 Fixed Income and 25% Global Equity. Chile 0.4 0.4 China 0.3 0.4 Finland 0.3 0.3 Market Price Risk France 3.6 3.5 As at December 31, 2020, if the Fund’s benchmark (45% S&P/TSX Composite Germany 0.4 - Index, 25% MSCI World Index, 20% FTSE Canada Universe Bond Index and 10% Italy 0.5 0.6 Japan 0.7 0.5 Bloomberg Barclays U.S. Intermediate Credit Index (Hedged)) increased or Malaysia 0.4 0.4 decreased by 10%, with all other variables held constant, the net assets of the Mexico 1.0 0.8 Fund would have increased or decreased, respectively, by approximately $7.4 Netherlands - 0.4 million (December 31, 2019—$9.3 million), or 6.7% (December 31, South Korea 1.1 1.0 2019—6.7%) of total net assets. This impact is estimated based on the historical Switzerland 1.6 1.3 correlation between the return of Series I units of the Fund as compared to the United Kingdom 5.2 5.7 return of the Fund’s benchmark(s). In practice, the historical correlation may not United States 18.5 18.5 be representative of the future correlation and, accordingly, the impact on net Short-term Investments 2.0 2.1 assets could be materially different. Total investments 98.4 98.6 Foreign exchange contracts, net - - Total financial instruments at fair value 98.4 98.6 Total other assets less liabilities at cost or amortized cost 1.6 1.4 Total Net Assets Attributable to Holders of Redeemable Units 100.0 100.0

208 The notes at the back of this document are an integral part of these ﬁnancial statements. SIONNA STRATEGIC INCOME FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

Foreign Currency Risk Credit Risk The tables below indicate the currencies to which the Fund had signiﬁcant At December 31, 2020 and December 31, 2019, the Fund was invested in debt exposure on its ﬁnancial instruments as at December 31, 2020 and December securities principally through its investment in Bridgehouse Canadian Bond Fund 31, 2019 in Canadian dollar terms, including the underlying principal of forward and Brandes Corporate Focus Bond Fund. exchange contracts, if any. At December 31, 2020 and December 31, 2019, the Fund was invested in debt DECEMBER 31, 2020 securities with the following credit ratings: INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) DECEMBER 31, 2020 DECEMBER 31, 2019 Brazilian Real 556 - 24 580 DEBT SECURITIES % OF TOTAL % OF TOTAL Chilean Peso 435 - - 435 BY CREDIT DEBT % OF DEBT % OF RATING* INSTRUMENTS NET ASSETS INSTRUMENTS NET ASSETS Euro 5,273 1 49 5,323 Hong Kong Dollar 316 - - 316 AAA/Aaa 21.3 6.2 25.5 7.4 Japanese Yen 862 - 3 865 AA/Aa 34.9 10.1 36.5 10.5 Malaysian Ringgit 462 - - 462 A/A 14.1 4.1 12.9 3.7 Mexican Peso 786 - - 786 BBB/Baa 21.8 6.4 17.9 5.2 Pound Sterling 5,804 26 2 5,832 BB/Ba 4.6 1.4 4.7 1.4 South Korean Won 1,275 - - 1,275 B/B 3.1 0.9 1.5 0.4 Swiss Franc 1,838 - 25 1,863 CCC/Caa - - 0.5 0.1 U.S. Dollar 9,737 55 37 9,829 CC/Ca - - 0.5 0.1 D 0.2 0.1 - - Total 27,344 82 140 27,566 Total 100.0 29.2 100.0 28.8 % of Net Assets 24.7 0.1 0.1 24.9 *Excludes cash & cash equivalents

Credit ratings are obtained from Standard & Poor’s, Moody’s and Dominion Bond DECEMBER 31, 2019 Rating Service. When more than one rating is obtained for a security, the average INVESTMENTS CASH OTHER NET TOTAL CURRENCY ($000) ($000) ASSETS ($000) ($000) rating has been used. Brazilian Real 1,298 - 19 1,317 The Fund enters into foreign exchange contracts to buy and sell currencies for the Chilean Peso 554 - - 554 Euro 6,048 - 28 6,076 purpose of settling foreign securities transactions. These are short term spot Hong Kong Dollar 562 - - 562 settlements carried out with approved counterparties. The exposure to credit risk Japanese Yen 763 - 6 769 on these contracts is considered minimal as the transactions are settled and paid Malaysian Ringgit 557 - - 557 for upon delivery. Mexican Peso 1,137 - - 1,137 Pound Sterling 8,500 35 (8) 8,527 South Korean Won 1,267 - - 1,267 Swiss Franc 1,772 - 18 1,790 SECURITIES LENDING U.S. Dollar 11,674 226 68 11,968 The aggregate market value of all securities loaned by a fund cannot exceed 50% of the net assets of the applicable Fund. The Funds receive collateral of at least Total 34,132 261 131 34,524 102% of the value of the securities on loan. Collateral may comprise of obligations % of Net Assets 24.6 0.2 0.1 24.9 of or guaranteed by the Government of Canada, or a province thereof, or by the United States government or its agencies. As at December 31, 2020, if the Canadian dollar had strengthened or weakened by 2% (December 31, 2019—2%), in relation to all foreign currencies, with all As at December 31, 2020 and 2019, the fair value of securities on loan and other variables held constant, the Fund’s net assets would have decreased or collateral received was $Nil. increased, respectively, by approximately $0.6 million (December 31, 2019—$0.7 million), or 0.5% (December 31, 2019—0.5%) of total net assets. Reconciliation Between Gross and Net Income from Securities Lending

Interest Rate Risk DECEMBER 31, 2019 As at December 31, 2020 and December 31, 2019, the Fund has interest rate % OF GROSS ($000) INCOME exposure through its investment in the Bridgehouse Canadian Bond Fund and Brandes Corporate Focus Bond Fund. Gross Income from Securities Lending 3 100.0 Withholding Tax - - At December 31, 2020 and December 31, 2019, the Fund’s exposure to interest Fees Paid to Securities Lending Agent* 1 33.3 rate risk through these investments by remaining term to maturity was as follows: Total Deductions 1 33.3 Net Income from Securities Lending, net DECEMBER 31, 2020 DECEMBER 31, 2019 of withholding tax 2 66.7 DEBT % OF % OF INSTRUMENTS ($000) NET ASSETS ($000) NET ASSETS *All securities lending agent fees were paid to State Street Bank & Trust Company, Canada. Less than 1 year 3,805 3.5 4,691 3.3 1 to 3 years 8,313 7.5 11,785 8.5 3 to 5 years 5,289 4.7 5,557 4.0 OFFSETTING OF FINANCIAL INSTRUMENTS Greater than 5 years 17,356 15.7 21,168 15.2 The Fund does not enter into any enforceable master netting arrangement. Total 34,763 31.4 43,201 31.0

At December 31, 2020, if the prevailing interest rates had risen or declined by 0.25% (December 31, 2019—0.25%), assuming a parallel shift in the yield curve, with all other variables held constant, net assets would have decreased or increased, respectively, by approximately $0.5 million (December 31, 2019—$0.6 million), or 0.5% (December 31, 2019—0.4%) of total net assets. The Fund’s sensitivity to interest rate changes was estimated using the weighted average duration of the bonds. In practice, the actual results may differ from this sensitivity analysis and the difference could be material.

The notes at the back of this document are an integral part of these ﬁnancial statements. 209 SIONNA STRATEGIC INCOME FUND

FUND SPECIFIC NOTES (CONTINUED) The information herein is provided as a fund speciﬁc supplement to note 3(k) and 4 to the ﬁnancial statements.

STRUCTURED ENTITIES DISCLOSURE

COUNTRY OF ESTABLISHMENT OWNERSHIP % OWNERSHIP % NET ASSETS OF AND PRINCIPAL AS AT AS AT UNDERLYING % OF PLACE OF DEC. 31 DEC. 31 UNDERLYING FUND NAME FUND $ (000) NET ASSETS BUSINESS 2020 2019 Brandes Corporate Focus Bond Fund Series IH 48,358 10.0 Canada 22.9 23.7 Bridgehouse Canadian Bond Fund Series I 31,722 19.6 Canada 68.4 72.8

210 The notes at the back of this document are an integral part of these ﬁnancial statements. NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2020

1. THE FUNDS FUND DATE OF INCEPTION Morningstar Balanced Series A, Series F, Series I May 17, 2017 (a) All of the funds (the Funds) listed below are open-ended mutual fund trusts, Portfolio Morningstar Conservative created by declarations of trust under the laws of the Province of Ontario. Series A, Series F, Series I May 17, 2017 Brandes Investment Partners & Co., operating as Bridgehouse Asset Portfolio Managers (collectively, Bridgehouse or the Manager) is the manager and Morningstar Growth Series A, Series F, Series I May 17, 2017 trustee of the Funds. The address of the Fund’s registered office is 33 Yonge Portfolio Street, Suite 300, Toronto, Ontario M5E 1G4. These financial statements Morningstar Moderate Series A, Series F, Series I May 17, 2017 were authorized for issue by Bridgehouse on March 18, 2021. Portfolio Morningstar Strategic Series A, Series D, Series F, September 16, 2016 (b) The objective of each Fund is to pool and manage money contributed by Canadian Equity Fund Series I investors (the “unitholders”) with similar investment goals. The Funds may Sionna Canadian Equity Series A, Series F, Series I December 29, 2006 invest in equities, fixed income securities, derivatives, underlying funds or Fund some combination thereof according to their investment objectives and Series D May 12, 2014 strategies. Investments may be held for income or capital appreciation or Sionna Opportunities Fund1 Series A, Series F, Series I May 13, 2014 both. Unitholders share the fund’s income, expenses, and any gains or losses Sionna Strategic Income Series A2, Series F2, Series I July 2, 2002 a fund makes on its investments generally in proportion to the value of the Fund2 securities they own. The Funds may earn interest, or other amounts taxed as ordinary income (including income from securities lending activities),

dividends, capital gains or a combination of these on its investments. The 1 Funds’ investment objective is to provide long-term capital growth by The Brandes Global Balanced Fund, the Sionna Monthly Income Fund and following the investment guidelines provided in their offering memorandum. the Sionna Diversified Income Fund were merged into the Sionna Strategic Income Fund on May 3, 2019. The Sionna Canadian Small Cap Equity Fund was merged into Sionna Opportunities Fund on May 3, 2019. The Brandes U.S. Small Cap Equity Fund was merged into the Brandes Global Small Cap FUND DATE OF INCEPTION Equity Fund on August 23, 2019. The Lazard Global Equity Income Fund Brandes Canadian Equity Series A, Series F, Series I July 2, 2002 was merged into the Lazard Defensive Global Dividend Fund (formerly Lazard Fund Global Managed Volatility Fund), and the Lazard Emerging Markets Multi- Series D May 12, 2014 Asset Fund was merged into the Lazard Global Balanced Income Fund on Brandes Canadian Money Series A July 2, 2002 May 22, 2020. All costs and expenses associated with the mergers were Market Fund borne by the Manager. See fund specific notes for further details. Series F November 12, 2002 Brandes Corporate Focus 2 Effective April 12, 2019, the following changes were made to the Sionna Series A, Series F, Series I Bond Fund Canadian Balanced Fund: the name was changed to Sionna Strategic Series AH, Series FH, Series IH January 19, 2007 Income Fund; Series AN and Series FN were re-designated to Series A and Brandes Emerging Markets Series F respectively; and the investment strategies were enhanced to include Series A, Series F, Series I July 2, 2002 Value Fund dividend paying companies. Effective May 15, 2019, the distribution policy of Series D May 12, 2014 the Sionna Strategic Income Fund was changed from quarterly to monthly. Brandes Global Equity Series A, Series F, Series I July 2, 2002 3 Effective February 28, 2020, the following changes were made to the Lazard Fund Global Managed Volatility Fund: the name was changed to Lazard Defensive Series D May 12, 2014 Global Dividend Fund; and the investment strategies were modified to factor Series AH, Series FH, Series IH April 23, 2015 in a company’s ability to pay sustainable and attractive levels of dividends. Brandes Global Series A, Series F, Series I June 29, 2012 Effective March 15, 2020, the distribution policy of the Lazard Defensive Opportunities Fund Global Dividend Fund's (formerly Lazard Global Managed Volatility Fund) was Brandes Global Small Cap Series A, Series F, Series I July 2, 2002 changed from quarterly to monthly. Equity Fund1 Series D May 12, 2014 4 Effective November 27, 2020, a U.S. dollar purchase option was added to Brandes International Series A, Series F and Series I securities of the Fund. Series A, Series F, Series I July 2, 2002 Equity Fund Series D May 12, 2014 (c) The “Statements of Financial Position” for each fund are as at December 31, 2020 and December 31, 2019 as applicable. The “Statements of Brandes U.S. Equity Fund Series A, Series F, Series I July 2, 2002 Comprehensive Income”, “Statements of Changes in Net Assets Attributable Series AH, Series FH, Series IH April 23, 2015 to Holders of Redeemable Units” and “Statements of Cash Flows” for each Bridgehouse Canadian Series A, Series F, Series I November 4, 2014 fund are for the years ended December 31, 2020 and 2019 as applicable, Bond Fund except for funds established during the year, in which case the information GQG Partners Global for that Fund is provided for the period from inception of the Fund to 4 Series A, Series F, Series I September 30, 2020 Quality Equity Fund December 31 of the applicable year. The “Schedule of Investment Portfolio” GQG Partners International Series A, Series F, Series I September 30, 2020 for each Fund is as at December 31, 2020. Quality Equity Fund4 Lazard Defensive Global (d) The different series of all Funds are intended for different kinds of investors. Dividend Fund (formerly Series A, Series F, Series I September 9, 2015 Lazard Global Managed Series A and Series AH units are available to all retail investors. Volatility Fund)3 Lazard Global Balanced Series AN units were available to any retail investor in the Sionna Strategic Series A, Series F, Series I November 4, 2014 Income Fund1 Income Fund and the Sionna Monthly Income Fund who resided in a Lazard Global Harmonized Sales Tax (“HST”) non-participating province unless Series A, Series F, Series I Compounders Fund Bridgehouse otherwise determines that an investor’s relevant address for HST Series AH, Series FH, Series IH May 9, 2016 purposes is in an HST participating province. HST participating province Lazard International refers to the provinces of Ontario, Quebec, Nova Scotia, New Brunswick, Series A, Series F, Series I July 2, 2020 Compounders Fund Prince Edward Island or Newfoundland and Labrador or any other province that in the future begins to apply the HST. Sionna Strategic Income Fund Morningstar Aggressive Series A, Series F, Series I May 17, 2017 Portfolio Series AN units were redesignated to Series A on April 12, 2019. The Sionna Monthly Income Fund was merged into the Sionna Strategic Income Fund on May 3, 2019, with Series AN units merging into Series A units.

NOTES TO THE FINANCIAL STATEMENTS 211 Series D Units are available to investors who acquire units through a discount As at the dates indicated below, Bridgehouse held investments at market brokerage account or another type of account satisfactory to Bridgehouse value, in the Funds as follows: and whose Dealer has signed an agreement with us. If Series D units are transferred to a Dealer or another type of account with a financial intermediary with whom Bridgehouse does not have an agreement regarding DECEMBER 31 DECEMBER 31 Series D units, the Series D units may be redeemed or may be switched by 2020 2019 us to an equivalent value of Series A units of the same Fund. FUND ($) ($) Brandes Canadian Equity Fund 1,499 1,348 Series F and Series FH units are available to all investors who participate in Brandes Canadian Money Market Fund 2,488,951 581 fee-based programs through an investment dealer and whose investment Brandes Corporate Focus Bond Fund 639 612 dealer has signed an agreement with Bridgehouse. Brandes Emerging Markets Value Fund 1,086 1,160 Series FN units were offered by the Sionna Strategic Income Fund and the Brandes Global Equity Fund 1,982 2,014 Sionna Monthly Income Fund. Series FN units were available to any investor Brandes Global Opportunities Fund 460 464 who resides in an HST non-participating province, provided the investor Brandes Global Small Cap Equity Fund 2,185 1,995 participates in fee-based programs through an investment dealer and whose Brandes International Equity Fund 869 896 dealer has signed an agreement with Bridgehouse, unless Bridgehouse Brandes U.S. Equity Fund 2,001 1,921 otherwise determines that an investor’s relevant address for HST purposes is Bridgehouse Canadian Bond Fund 356 324 in an HST participating province. Sionna Strategic Income Fund Series FN GQG Partners Global Quality Equity Fund 142,931 - units were redesignated to Series F on April 12, 2019. The Sionna Monthly Income Fund was merged into the Sionna Strategic Income Fund on May 3, GQG Partners International Quality Equity Fund 150,617 - Lazard Defensive Global Dividend Fund (formerly 2019, with Series FN units merging into Series F units. 3,861 759,539 Lazard Global Managed Volatility Fund) Series I and Series IH units are for large investors with minimum investments Lazard Global Balanced Income Fund 2,353 2,664,213 who have entered a Series I Subscription Agreement with Bridgehouse. Lazard Global Compounders Fund 5,635 4,707 Lazard International Compounders Fund 1,169,335 - The Hedged Series (Series AH, Series FH and Series IH) of units are Morningstar Aggressive Portfolio 196,792 180,131 intended for investors in the Hedged Series Funds, namely the Brandes Morningstar Balanced Portfolio 189,248 173,065 Corporate Focus Bond Fund, the Brandes Global Equity Fund, the Brandes U.S. Equity Fund, the Lazard Defensive Global Dividend Fund (formerly Morningstar Conservative Portfolio 177,518 163,178 Lazard Global Managed Volatility Fund) and the Lazard Global Compounders Morningstar Growth Portfolio 191,637 176,051 Fund, who wish to gain exposure to foreign securities, but wish to minimize Morningstar Moderate Portfolio 183,255 168,145 exposure to fluctuations in foreign currency. Morningstar Strategic Canadian Equity Fund 622,507 590,411 Sionna Canadian Equity Fund 1,735 1,791 The Unhedged Series (Series A, Series D, Series F and Series I) of units are Sionna Opportunities Fund 1,067 1,074 intended for investors in the Brandes Corporate Focus Bond Fund, the Sionna Strategic Income Fund 541,169 530,794 Brandes Global Equity Fund, the Brandes U.S. Equity Fund, the Lazard Defensive Global Dividend Fund (formerly Lazard Global Managed Volatility Fund) and the Lazard Global Compounders Fund who wish to gain exposure to foreign securities and also wish to be exposed to fluctuations in foreign 2. BASIS OF PRESENTATION currency. These financial statements have been prepared in accordance with International As the foreign currency exposure of the portion of each of the Brandes Financial Reporting Standards (IFRS). In accordance with IFRS 9 Financial Corporate Focus Bond Fund, the Brandes Global Equity Fund, the Brandes Instrument, assets are carried at amortized cost, fair value, with changes in fair U.S Equity Fund, the Lazard Defensive Global Dividend Fund (formerly value recognized in profit and loss (FVTPL) or fair value through other Lazard Global Managed Volatility Fund) and the Lazard Global Compounders comprehensive income (FVOCI) based on the entity's business model for Fund that is attributable to the Unhedged Series of units is not hedged, the managing financial assets and the contractual cash flow characteristics of the return on these units is based on both the performance of the Fund’s financial assets. portfolio investments and the performance of the foreign currency in which these investments were purchased relative to the Canadian dollar. The Funds business model is one in which financial assets are managed with the objective of realizing cash flows through the sale of assets. Decisions are made The Hedged Series of units of each of these five Hedged Series Funds will based on the assets’ fair values and assets are managed to realize these fair have a return that is based primarily on the performance of the portion of the values. This business model is aligned with a FVTPL classification and particular Hedged Series Fund’s portfolio investments that has been hedged measurement category. The Funds classify all investment and derivative financial because the developed markets foreign currency exposure will be hedged instruments at FVTPL and measure them at Fair Value. Debt securities are using derivative instruments such as foreign currency forward contracts for measured at FVTPL under IFRS 9 as the Funds do not hold the assets to collect the portions of the Fund that are attributable to the Hedged Series of units. contractual cash flows based on its business model. Collection of the contractual cash flows is not integral to achieving the Funds' business model objective but is In determining the value of a particular Hedged Series Fund that will be instead incidental to it. attributed to each of the Hedged Series and Unhedged Series of units, the value of the Fund’s portfolio holdings, other than the value of any foreign Loans as well as trade receivables are held to collect contractual cash flows and currency hedging derivatives less related Fund expenses, will be determined give rise to cash flows representing solely payments of principal and interest. and divided among all series of units of the Fund on a pro rata basis. The Thus, the Funds will continue to be measure these at amortized cost under IFRS value of any foreign currency hedging derivatives will be allocated only to the 9. Hedged Series of units of the Fund on a pro rata basis, and any expenses or liabilities related to the foreign currency hedging will also be allocated only to The classification and measurement of liabilities remains generally unchanged the Hedged Series of units of the Fund on a pro rata basis. with the exception of liabilities recorded at FVTPL. For these liabilities, fair value changes attributable to changes in the entity's own credit risk are to be presented (e) To establish the Funds, Bridgehouse made an initial investment of $150,000 in other comprehensive income unless they affect amounts recorded in income. in each of the Funds, other than the Brandes Corporate Focus Bond Fund, the Brandes Global Opportunities Fund, the Lazard Global Balanced Income Fund, the Lazard Global Compounders Fund, the Lazard Defensive Global Dividend Fund (formerly Lazard Global Managed Volatility Fund), the Lazard International Compounders Fund where Bridgehouse made initial investments of $5,000,000, $3,000,000, $500,000, $2,000,000 $1,000,000 and $1,000,000 respectively. Bridgehouse, as the initial investor, cannot redeem its investment until an additional $500,000 has been received from other investors in each of the respective Funds. All of the Funds have now reached that threshold.

212 NOTES TO THE FINANCIAL STATEMENTS 3. SIGNIFICANT ACCOUNTING POLICIES (c) Recognition and classification of financial instruments—Financial instruments include financial assets and liabilities such as debt and equity securities, (a) Accounting estimates——The preparation of financial statements requires the open-ended investment funds and derivatives, cash and other receivables Manager to make judgments, estimates and assumptions that affect the and payables. The Funds classify and measure financial instruments in reported amounts of assets, liabilities, income and expenses. The following accordance with IFRS 9 Financial Instruments (IFRS 9). Upon initial discusses the most significant accounting judgments and estimates that the recognition, financial assets and financial liabilities are recognized at fair Funds have made in preparing the financial statements. The most significant value. Subsequently, investment and derivatives are classified at FVTPL and uses of judgments, estimates and assumptions are to classify financial all other financial assets and liabilities are carried at amortized cost. instruments held by the Funds and to determine the fair value of financial All financial instruments including regular way purchases and sales of instruments. The Funds hold financial instruments that may not be quoted in financial assets are initially recorded at fair value on the trade date i.e., the active markets, including derivatives. Fair values of such instruments are date that the Funds commit to purchase or sell the asset. The subsequent determined using valuation techniques and may be determined using measurement of all financial instruments depends on the initial classification. reputable pricing sources (such as pricing agencies) or indicative prices from market makers. Broker quotes as obtained from the pricing sources may be The Funds recognize all financial instruments at fair value upon initial indicative and not executable or binding. Where no market data is available, recognition, plus transaction costs in the case of financial instruments the Funds may value positions using its own models, which are usually based measured at amortized cost. on valuation methods and techniques generally recognized as standard within the industry. The models used to determine fair values are validated The funds accounting policies for measuring the fair value of its investments and periodically reviewed by experienced personnel of the Manager, and derivatives are identical to those used in measuring their net asset value independent of the party that created them. The models used for private (“NAV”) for the purpose of processing unitholder transactions in accordance equity securities are based mainly on earnings multiples, or similar risk with Section 14.2 of National Instrument 81-106 ("NI 81-106"). companies adjusted for a lack of marketability as appropriate. Gains and losses arising from changes in fair value of financial instruments Models use observable data, to the extent practicable. However, areas such designated at FVTPL are included directly in the “Statements of as credit risk (both own and counterparty), volatilities and correlations require Comprehensive Income” and are reported as “Net change in unrealized the Manager to make estimates. Changes in assumptions about these factors appreciation (depreciation) of investments”, and “Net realized gain (loss) on could affect the reported fair values of financial instruments. The Funds investments”. consider observable data to be market data that is readily available, regularly distributed and updated, reliable and verifiable, not proprietary, and provided Dividend income from financial assets at FVTPL is recognized in the by independent sources that are actively involved in the relevant market. “Statements of Comprehensive Income” within dividend income on the ex- Actual results may differ from these estimates. dividend date right to receive payments is established. Interest on debt securities at FVTPL is recognized in the "Statements of Comprehensive IFRS 9 requires that an entity recognize a loss allowance for expected credit Income" within "Interest for distribution purposes" and is recognized daily on losses on financial assets which are measured at amortized costs or FVOCI. an accrual basis. Financial assets held by the Fund which are measured at FVTPL will not be subject to the new impairment requirements. Loans and receivables—Non-derivative financial assets which are not measured at fair value are designated as loans and receivables, provided the With respect to loans and receivables, the Funds considers both historical financial asset has fixed or determinable payments and is not quoted in an analysis and forward looking information in determining any expected credit active market. Loans and receivables are stated on the “Statements of loss. As at the financial statement date, all loans and receivables are due to Financial Position” at amortized cost less any allowance for credit losses. be settled within the short term. The Funds considers the probability of Accrued interest is recorded in “Accrued investment income” on the default to be close to zero as these instruments have a low risk of default and “Statements of Financial Position”. the counterparties have a strong capacity to meet their contractual obligation in the near term. Given the limited exposure of the Fund to credit risk, no loss The Funds classify “Cash”, “Receivable for redeemable unit subscriptions”, allowance has been recognized as any such impairment will not have a “Receivable from securities sold”, “Dividends and accrued interest significant impact on the financial statements. receivable” and “Accounts receivable—other” as loans and receivables and measured at amortized cost. (b) Translation of foreign currencies—The Funds’ functional and presentation currency is Canadian dollars (d) Impairment of financial assets—At each reporting period, the Funds assess whether there is objective evidence that a financial asset at amortized cost is (i) Monetary assets and liabilities AND any financial assets and liabilities at impaired. If such evidence exists, the Funds recognize an impairment loss as FVTPL denominated in foreign currencies are translated into Canadian the difference between the amortized cost of the financial asset and the dollars at the rate of exchange prevailing at the “Statements of Financial present value of the estimated future cash flows, discounted using the Position” date. instrument’s original effective interest rate. An impaired asset is written off when collection efforts are no longer expected to yield further benefits. (ii) Purchases and sales of investments, investment income and expenses Impairment losses on a financial asset at amortized cost are reversed in denominated in foreign currencies are translated into Canadian dollars at subsequent periods if the loss decreases and the decrease can be related the rate of exchange prevailing on the respective dates of such objectively to an event occurring after the impairment was recognized. transactions. (e) Derecognition of financial instruments— (iii) Realized and unrealized foreign currency gains (losses) on investments classified as FVTPL are included in the “Statements of Comprehensive (i) Financial assets—Financial assets are derecognized when the rights to Income” as part of “Net realized gain (loss) on sale of investments” and receive cash flows from the financial assets have expired or when the “Net change in unrealized appreciation (depreciation) of investments”, Funds have transferred substantially all the risks and rewards of respectively. ownership. If the Fund neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, it derecognizes the (iv) Realized and unrealized foreign currency gains (losses) on non- financial asset if it no longer has control over the asset. In transfers investment assets, liabilities and investment income denominated in where control over the asset is retained, the Fund continues to recognize foreign currencies are included in the “Statements of Comprehensive the asset to the extent of its continuing involvement. The extent of the Income” as “Net realized gain (loss) on foreign currencies” and “Net Funds continuing involvement is determined by the extent to which they change in unrealized appreciation (depreciation) of foreign currencies”, are exposed to changes in the value of the asset. respectively. (ii) Financial liabilities—Financial liabilities are derecognized when (v) Realized and unrealized currency gains (losses) on foreign currency contractual obligations are met, revoked or have expired. Gains and contracts are included in the “Statements of Comprehensive Income” losses on derecognition of all financial liabilities are calculated as the under “Net realized gain (loss) on foreign exchange contracts” and “Net difference between settlement proceeds, net of transaction costs, and change in unrealized appreciation (depreciation) of foreign exchange the liability’s carrying value and are recorded on the “Statements of contracts”, respectively. Comprehensive Income”.

NOTES TO THE FINANCIAL STATEMENTS 213 (f) Redeemable units—Redeemable units are redeemable at the unitholders’ Mortgage-related securities are created from pools of residential or option and are classiﬁed as ﬁnancial liabilities represented by “Net assets commercial mortgage loans, including mortgage loans made by savings and attributable to holders of redeemable units” on the “Statements of Financial loan institutions, mortgage bankers, commercial banks and others. Asset- Position”. The liabilities arising from the redeemable units are carried at the backed securities are created from many types of assets, including auto redemption amount. Redeemable units are issued and redeemed based on loans, credit card receivables, home equity loans, and student loans. the net asset value per unit of a series of the Fund (“NAVPU”) at the date of issue or redemption. NAVPU is computed by dividing the NAV of a series by The fair value of such securities as at December 31, 2020 and 2019 the total number of outstanding units of the series. The NAVPU is calculated represents the maximum exposure to losses at that date. The change in fair as of the close of each day that the Toronto Stock Exchange is open for value of mortgage related and other asset backed securities are included in trading. NAV is the value of the total assets of a series less the value of the the "Statements of Comprehensive Income" in "Net change in unrealized total liabilities on each valuation day, in accordance with “NI 81-106”. appreciation (depreciation) of investments".

The calculations of the NAV and net assets attributable to holders of (k) Fair value measurement and disclosure— redeemable units are both based on the closed or last traded prices of investment securities. Calculating the net assets of the Funds in accordance (i) Fair value estimation—Fair value is the price that would be received to with IFRS allows the Funds to, among other things, use a price between the sell an asset or paid to transfer a liability in an orderly transaction last bid-ask spread, which most represents fair value for the purposes of between market participants at the measurement date and in the valuation of a security. In circumstances where the last traded price is not principal market, or in its absence, the most advantageous market to within the bid-ask spread, for IFRS purposes the Manager will determine the which the Funds have access. point within the bid-ask spread that is the most representative of the fair The fair value of financial instruments as at the financial reporting date is value of the security based on the specific facts and circumstances at hand. determined as follows: In case a reliable or timely value is not available, the fair value for IFRS purposes will be estimated using certain valuation techniques on such basis a. Financial instruments held that are traded in an active market are and in such manner as may be determined by the Manager. Under IFRS, IAS valued based on the quoted market prices at the close of trading on 32 requires that units of the Funds which include a contractual obligation for the reporting date. The Funds use the last traded market prices for the issuer to repurchase or redeem them for cash or another financial asset both financial assets and financial liabilities where the last traded be classified as a financial liability. The Funds’ units do not meet the criteria price falls within that day’s bid-ask spread. In circumstances where in IAS 32 for classification as equity and therefore, are classified as financial the last traded price is not within the bid-ask spread, the Manager liabilities. determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and (g) Derivative transactions—The Funds are permitted by Canada’s securities law circumstances. to use derivative instruments to achieve its investment objectives as set out in the Funds’ simplified prospectus. Derivative instruments are valued daily b. Financial instruments held that are not traded in an active market using normal exchange reporting sources for exchange-traded derivatives are valued primarily based on the results of valuation techniques and specific broker enquiry for over-the-counter derivatives. All derivatives using observable market inputs, on such basis and in such manner are carried as assets when fair value is positive and as liabilities when fair established by the Manager. value is negative and are reported on the “Statements of Financial Position” as "Receivable or Payable, for open foreign currency spot or forward c. Bonds and similar securities are valued based on the closing contracts." quotation received from recognized investment dealers.

(h) Transaction costs—Transaction costs are incremental costs that are directly d. Foreign exchange forward contracts are valued based on the attributable to the acquisition, issue or disposal of an investment. These costs difference between the value of the contract on the valuation date include fees and commissions paid to agents, advisors, brokers and dealers. and the value on the date the contract was originated. Transaction costs incurred in the purchase and sale of securities designated at FVTPL and HFT are expensed and are included in “Transaction costs” on (ii) Fair value hierarchy—IFRS requires disclosures relating to fair value the “Statements of Comprehensive Income”. measurements using a three-level fair value hierarchy that reflects the significance of the inputs used in measuring fair values. (i) Offsetting financial instruments—The Funds enter into various master netting agreements or other similar agreements that do not meet the criteria for The three levels of the fair value hierarchy are: offsetting in the "Statements of Financial Position", but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or Level 1—Quoted prices from an active market for identical assets and termination of the contracts. liabilities.

(j) Investments in associates, joint ventures, subsidiaries and unconsolidated Level 2—Inputs other than quoted prices that are directly or indirectly structured entities—Subsidiaries are all entities, including investments in observable. other investment entities, over which the Funds have control. The Funds Level 3—Inputs that are unobservable for the asset and liability. control an entity when they are exposed to, or have the rights to, variable returns from involvement with the entity and have the ability to affect those The Fund recognizes transfer into and out of the fair value hierarchy returns through its power over the entity. The Funds have determined that levels as of the date of the event or change in circumstances giving rise they are investment entities and, as such, account for subsidiaries, if any, at to the transfer. FVTPL. Associates and joint ventures are investments over which the Funds have significant influence or joint control, which, if any, are designated at The carrying values of cash, subscriptions receivable, interest receivable, FVTPL. A structured entity is an entity that has been designed so that voting payable for investments purchased, redemptions payable, distributions or similar rights are not the dominant factors in deciding who controls the payable, accrued liabilities and the Fund’s obligation for net assets entity, or when voting rights relate to administrative tasks only and the attributable to unitholders substantially equals their fair values due to relevant activities are directed by means of contractual arrangements. The their short-term nature. Fair values are classified as Level 1 when the Manager has determined that the underlying funds held by the Funds related security or derivative is actively traded and a quoted price is typically meet the definition of structured entities. The Funds account for available. If an instrument classified as Level 1 subsequently ceases to their investments in unconsolidated structured entities at FVTPL. Disclosures be actively traded, it is transferred out of Level 1. In such cases, regarding the Funds’ investments in associates, joint ventures, subsidiaries instruments are reclassified into Level 2, unless the measurement of its and unconsolidated structured entities, as applicable, are included in the fair value requires the use of significant unobservable inputs, in which Fund Specific Notes. case it is classified as Level 3.

Certain Funds invest in mortgage-related and other asset-backed securities. a. Equities/ETFs—The Fund’s equity/ETF positions are classified as These securities include mortgage pass-through securities, collateralized Level 1 when the security is actively traded and a reliable price is mortgage obligations, commercial mortgage-backed securities, asset-backed observable. In cases where the Funds' equities/ETFs may not be securities, collateralized debt obligations and other securities that directly or frequently traded and therefore observable prices may not be indirectly represent a participation in, or are secured by and payable from, available. In such cases, fair value is determined using observable mortgage loans on real property. The debt and equity securities issued by market data (e.g. transactions for similar securities of the same these securities may include tranches with varying levels of subordination. issuer) and the fair value is classified as Level 2, unless the These securities may provide a monthly payment which consists of both determination of fair values requires significant unobservable data, interest and principal payments. in which case the measurement is classified as Level 3.

214 NOTES TO THE FINANCIAL STATEMENTS b. Bonds and short-term investments—Bonds including primarily See the Fund Specific Notes for consideration of the financial risks inherent in the government and corporate bonds, which are valued using models financial instruments held by each Fund. with inputs including interest rate curves, credit spreads and volatilities. The inputs that are significant to valuation are generally observable and therefore the Fund’s bonds and short-term Market Price Risk investments have been classified as Level 2. Market price risk arises primarily from uncertainties about future market prices of the instruments held (other than those arising from interest rate risk or currency c. Mutual funds—The Fund’s mutual fund positions are classified as risk). Market price fluctuations may be caused by factors specific to an individual Level 1 as the investment funds are redeemable on a daily basis investment, or all factors affecting all securities traded in a market or industry and reliable prices are observable. sector. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. d. Derivative assets and liabilities—Derivative assets and liabilities consist of foreign currency forward contracts which are valued based primarily on the contract notional amount, the difference Currency Risk between the contract rate and the forward market rate for the same Currency risk arises from financial instruments that are denominated in a currency, interest rates and credit spreads. Contracts for which currency other than the Canadian dollar, which is each Fund’s functional counterparty credit spreads are observable and reliable, or which currency. Those Funds holding securities in foreign countries are exposed to the the credit-related inputs are determined not to be significant to fair risk that the value of securities denominated in other currencies will fluctuate due value, are classified as Level 2. to changes in exchange rates. (l) Securities lending—The Funds qualify to lend portfolio securities from time to time in order to earn additional income. The Fund receives collateral in the Interest Rate Risk form of cash or qualified non-cash instruments having a market value equal Interest rate risk arises from the possibility that changes in interest rates will affect to at least 102% of the market value of the securities loaned during the future cash flows or fair values of financial instruments. When a Fund invests in period. The Funds have the right to sell the non-cash collateral if the interest-bearing financial instruments such as bonds it is exposed to the risk that borrower defaults on its obligations under the transaction. The market value the values or cash flows of those fixed-rate debt instruments will fluctuate due to of the loaned securities is determined at the close of each business day and changes in prevailing levels of market interest rates. any additional required collateral is delivered to the Funds on the following business day. Cash collateral is invested in cash equivalents. The loaned securities continue to be included in “Investments” on the “Statements of Credit Risk Financial Position”. The non-cash collateral pledged by the borrower and the The Funds are exposed to credit risk, which is the risk that one party to a financial related obligation of the Funds to return such collateral are not reported on instrument will cause a financial loss for the other party by failing to discharge an the “Statements of Financial Position” and the “Schedule of Investment obligation. The majority of the credit risk to which the Funds are exposed arises Portfolio”. from its investments in debt securities.

Income on securities lending transactions is accrued with the passage of time The Funds are also exposed to counterparty credit risk on forward contracts. The and is included in “Securities lending” on the “Statements of Comprehensive counterparty credit risk for forward contracts is managed by using counterparties Income”. with minimum credit ratings from Standard & Poor’s of A, limiting the term of forward contracts to 365 days, and limiting mark-to-market exposure to any one (m) Increase (decrease) in net assets attributable to holders of redeemable units counterparty to 10% of the net assets attributable to holders of redeemable units. per unit—“Increase (decrease) in net assets attributable to holders of redeemable units per unit” in the “Statements of Comprehensive Income” All transactions in listed securities are settled or paid upon delivery using represents the increase (decrease) in net assets attributable to holders of approved brokers. The credit risk related to the associated receivables is redeemable units to each series of units for the period divided by the considered limited, as delivery of securities sold is only made once the broker has weighted average number of units outstanding in that series during the received payment. Payment is made on a purchase once the securities have been period. received by the broker. The trade will fail if either party fails to meet its obligation. However, there are risks involved in dealing with custodians or prime brokers who settle trades and in rare circumstances, the securities and other assets deposited 4. FINANCIAL INSTRUMENT RISKS with the custodian or broker may be exposed to credit risk with regard to such parties. In addition, there may be practical problems or time delays associated In the normal course of business each Fund is exposed to a variety of financial with enforcing the Funds’ rights to their assets in the case of an insolvency of risks: market risk (comprised of market price risk, currency risk and interest rate such party. risk), credit risk and liquidity risk. The value of investments in a Fund’s portfolio can fluctuate on a daily basis as a result of changes in interest rates, market and The Funds also engage in securities lending transactions. The credit risk related economic conditions and factors specific to individual securities within the Fund. to securities lending transactions is limited by the fact that the value of cash or The level of risk depends on the Fund’s investment objectives and the type of securities held as collateral by the Funds in connection with these transactions is securities it invests in. at least 102 percent of the fair value of the securities loaned. The collateral and loaned securities are marked to market on each business day. Bridgehouse, the Manager of the Funds, seeks to manage those risks by employing professional and experienced portfolio advisors. Bridgehouse also manages risk by monitoring the functions delegated to the portfolio advisor and Liquidity Risk ensuring that portfolio management activities are carried out in compliance with Each Fund is exposed to daily cash redemptions of redeemable units. In each Fund’s stated investment objective and strategies and applicable securities accordance with securities regulations, each Fund must maintain at least 85% of regulations. its assets in liquid investments (i.e., investments that are traded in an active market and that can be readily sold). The Funds also have the ability to borrow up The recent outbreak of the novel coronavirus, first detected in December 2019, to 5% of their net assets for the purposes of funding redemptions. No such rapidly became a pandemic and has resulted in disruptions to the economies of borrowings occurred during the period. Other financial assets and liabilities are many nations, individual companies and the markets in general, the impact of generally short term in nature and are not generally exposed to liquidity risk. which cannot necessarily be foreseen at the present time. This has created closed borders, quarantines, supply chain disruptions and general anxiety, negatively impacting global markets in an unforeseeable manner. The impact of the novel coronavirus and other such future infectious diseases in certain regions or countries may be greater or less due to the nature or level of their public health response or due to other factors. Health crises caused by the recent coronavirus outbreak or future infectious diseases may exacerbate other pre-existing political, social and economic risks in certain countries. The impact of such health crises may be quick, severe and of unknowable duration. This pandemic and other epidemics and pandemics that may arise in the future could result in continued volatility in the financial markets and lead to increased levels of Fund redemptions, which could have a negative impact on the Funds and could adversely affect a Fund’s performance.

NOTES TO THE FINANCIAL STATEMENTS 215 5. REDEEMABLE UNITS Units of the Funds are offered for sale on a continuous basis and may be purchased or redeemed at the NAVPU of a particular series. The NAVPU is The units issued and outstanding represent the capital of each Fund. Each Fund calculated on every valuation date (any day on which the Toronto Stock Exchange is authorized to issue an unlimited number of units and series without par value. is open for trading). The NAVPU of a series for the purposes of purchases or Units are issued and redeemed at their current NAVPU at the option of the redemptions is computed by dividing the NAV of a series (that is, the total assets unitholder. The Funds have no restrictions or specific capital requirements on the attributable to the series less the liabilities attributable to the series) by the total purchases and redemptions of units, other than minimum purchase number of units of the series outstanding at such time. requirements. The number of units of each series outstanding, as well as the The NAV for each series of units of a Fund for purposes of unitholder purchases, changes in each Fund’s redeemable units during the period, is disclosed in the switches and redemptions is calculated in accordance with the valuation “Statements of Changes In Net Assets Attributable to Holders of Redeemable principles set out in the Funds’ simplified prospectus and annual information form Units.” Bridgehouse manages the capital of the Funds in accordance with the and generally uses last trade price to fair value investments traded in an active Funds’ investment objectives, including managing their liquidity in order to meet market. The Net Assets for each series of units of a Fund that is presented in redemptions. these financial statements is at close or last traded prices for actively traded securities for financial reporting purposes.

6. MANAGEMENT FEES AND OTHER EXPENSES

(a) Bridgehouse provides investment management, distribution and administrative services to the Funds, which includes the provision of key management personnel. In consideration for the services provided, Bridgehouse receives a monthly management fee based on the daily average Net Asset Value Attributable to Holders of Redeemable Units of each series.

The management fee differs among Funds and among series of units as outlined in the table below. Management fees for Series I and Series IH units are negotiated and paid directly by the investor, not by the Fund. The management fees for Series I and IH units will not exceed the Series A management fees, as applicable, of the Funds.

SERIES (%) FUNDS A D F AH FH Brandes Canadian Equity Fund 1.85 1.10 0.85 - - Brandes Canadian Money Market Fund 1.25 - 1.00 - - Brandes Corporate Focus Bond Fund 1.10 - 0.60 1.15 0.65 Brandes Emerging Markets Value Fund 2.20 1.45 1.20 - - Brandes Global Equity Fund 1.85 1.10 0.85 1.90 0.90 Brandes Global Opportunities Fund 2.00 - 1.00 - - Brandes Global Small Cap Equity Fund 2.20 1.45 1.20 - - Brandes International Equity Fund 1.85 1.10 0.85 - - Brandes U.S. Equity Fund 1.85 - 0.85 1.90 0.90 Bridgehouse Canadian Bond Fund 0.80 - 0.30 - - GQG Partners Global Quality Equity Fund 1.80 - 0.80 - - GQG Partners International Quality Equity Fund 1.80 - 0.80 - - Lazard Defensive Global Dividend Fund (formerly Lazard 1.70 - 0.70 1.75 0.75 Global Managed Volatility Fund) Lazard Global Balanced Income Fund 1.65 - 0.65 - - Lazard Global Compounders Fund 1.70 - 0.70 1.75 0.75 Lazard International Compounders Fund 1.70 - 0.70 - - Morningstar Aggressive Portfolio 1.85 - 0.85 - - Morningstar Balanced Portfolio 1.75 - 0.75 - - Morningstar Conservative Portfolio 1.35 - 0.60 - - Morningstar Growth Portfolio 1.80 - 0.80 - - Morningstar Moderate Portfolio 1.55 - 0.70 - - Morningstar Strategic Canadian Equity Fund 1.50 0.65 0.50 - - Sionna Canadian Equity Fund 1.80 1.05 0.80 - - Sionna Opportunities Fund 1.90 - 0.90 - - Sionna Strategic Income Fund 1.80 - 0.80 - -

Effective April 12, 2019, the management fees were reduced as follows: - Series FH units: from 1.25% to 0.90%

Sionna Strategic Income Fund Effective May 13, 2019, the management fees were reduced as follows: - Series A units: from 1.90% to 1.80% Lazard Defensive Global Dividend Fund (formerly Lazard Global - Series F units: from 0.9% to 0.80% Managed Volatility Fund) Effective May 13, 2019, the management fees were reduced as follows: - Series A units: from 1.90% to 1.70% - Series AH units: from 1.95% to 1.75% Brandes Canadian Equity Fund - Series F units: from 0.90% to 0.70% - Series A units: from 2.20% to 1.85% - Series FH units: from 0.95% to 0.75% - Series D units: from 1.45% to 1.10% - Series F units: from 1.20% to 0.85% Effective January 15, 2020, the management fees were reduced as follows:

Effective May 13, 2019, the management fees were reduced as follows: Lazard Global Compounders Fund - Series A units: from 1.90% to 1.70% Brandes U.S. Equity Fund - Series AH units: from 1.95% to 1.75% - Series A units: from 2.20% to 1.85% - Series F units: from 0.90% to 0.70% - Series AH units: from 2.25% to 1.90% - Series FH units: from 0.95% to 0.75% - Series F units: from 1.20% to 0.85%

216 NOTES TO THE FINANCIAL STATEMENTS Effective July 2, 2020, the management fees were reduced as follows: As at the most recent taxation year end of December 15, 2020 (December 31, 2020 for Brandes Canadian Money Market Fund), the Funds had the following Lazard Global Balanced Income Fund capital losses available, which may be carried forward indeﬁnitely to reduce future - Series A units: from 1.80% to 1.65% realized capital gains. - Series F units: from 0.80% to 0.65%

(b) In addition to management fees, the Funds are responsible for the payment CAPITAL LOSSES of all expenses relating to their operations. Operating expenses incurred by FUND ($) the Funds may include applicable taxes (including GST or HST/QST), Brandes Canadian Equity Fund 74,200,315 accounting, legal, audit, costs relating to the Funds’ Independent Review Brandes Corporate Focus Bond Fund 6,120,419 Committee, trustee, custodial, administrative costs, investor servicing costs Brandes Emerging Markets Value Fund 10,966,458 and costs of regulatory reporting and prospectuses filing. Brandes Global Equity Fund 1,299,122,121 Each Fund and series is responsible for the payment of operating expenses Brandes Global Small Cap Equity Fund 74,702,456 that can be specifically attributed to that Fund and series. Common operating Brandes International Equity Fund 250,376,696 expenses of the Funds are allocated among the series based on the average Brandes U.S. Equity Fund 44,939,521 number of unitholders or the average daily Net Asset Value of each series, Bridgehouse Canadian Bond Fund 42,150 depending on the type of operating expenses being allocated. All operating Lazard Global Compounders Fund 910,241 expenses of Series I and Series IH are the responsibility of Bridgehouse. Morningstar Strategic Canadian Equity Fund 983,908 Sionna Canadian Equity Fund 52,692,667 (c) At its sole discretion, Bridgehouse waives management fees or absorbs GQG Partners Global Quality Equity Fund 1,698,600 expenses of certain Funds. The expenses absorbed are shown on the “Statements of Comprehensive Income.” Such waivers and absorptions can GQG Partners International Quality Equity Fund 109,338 be terminated at any time without notice. Morningstar Aggressive Portfolio 152,473 Sionna Strategic Income Fund 568,708 (d) In some cases Bridgehouse may effectively reduce the management fee and/or operating expenses (referred to here-in as the "Cost") for investors in certain Funds. For example, Bridgehouse may reduce the Cost for early Non-capital losses for income tax purposes may be carried forward for up to investors, for large investors or for Employee Related Accounts. Such twenty years and applied against capital gains realized and net income in future reductions in the Cost are only available on the Front-End Sales Charge years. As at the most recent taxation year of December 15, 2020 (December 31, Option of Series A, Series AH and Series AN securities and Series F, Series 2020 for Brandes Canadian Money Market Fund), the Funds had the following FH and Series FN securities. A Series of the Fund pays an amount equal to non-capital losses available: this reduction in Cost to the security holder as a special management fee distribution. Refer to Bridgehouse's most recently filed simplified prospectus for more details. NON-CAPITAL LOSSES FUND ($) (e) On May 15, 2017, Bridgehouse announced the Greystone Global Equity Fund Introductory Pricing Program to reduce the cost of the Fund. Following GQG Partners International Quality Equity Fund 2,509 the name changes, unitholders in eligible Series of the Lazard Global Lazard Global Compounders Fund 216,395 Compounders Fund (formerly, the Greystone Global Equity Fund) , who were eligible for and participated in the Greystone Global Equity Fund Introductory Pricing Program (the GGEF Pricing Program), will continue to benefit from 8. BROKER COMMISSIONS the fee reductions under the GGEF Pricing program. Transaction costs and commissions paid to brokers in connection with portfolio transactions for the periods ended December 31, 2020 and 2019 are disclosed in 7. INCOME TAX the “Statements of Comprehensive Income” of each Fund. Brokerage business is allocated to brokers based on an assessment as to which broker can provide the All Funds are governed under the provisions of the Income Tax Act (Canada). Funds with the best results. Subject to these criteria, Bridgehouse may allocate Accordingly, each Fund is subject to tax on its net investment income and net business to brokers that provide or pay for, in addition to transaction execution, realized capital gains, which is not paid or payable to its unitholders as at the end investment research, statistical or other similar services which may or may not be of the taxation year. It is the intention of each Fund to distribute all of its net used by Bridgehouse in its investment decision making process. investment income and sufficient net realized capital gains so that the Fund will not be subject to income taxes. As a result, the Funds do not record income Bridgehouse estimates the value of the investment research services by taxes. Since the Funds do not record income taxes, the tax benefit of capital and commission sharing arrangement brokers as follows: non-capital losses and other temporary differences have not been reflected in the "Statements of Financial Position" as deferred income tax assets or liabilities. Each Fund has a tax year end of December 15, except for the Brandes Canadian 2020 SOFT 2019 SOFT Money Market Fund, which has a December 31 year end. Capital losses are DOLLAR DOLLAR available to be carried forward indefinitely and applied against future net capital COMMISSION COMMISSION gains. Non-capital losses may be carried forward for twenty years. FUND ($) ($) Brandes Canadian Equity Fund 466 667 The Funds may currently incur withholding taxes imposed by certain countries on Brandes Emerging Markets Value Fund 65,555 40,175 investment income and capital gains. Such income and gains are recorded on a Brandes Global Equity Fund 11,446 4,629 gross basis and the related withholding taxes are shown as a separate expense in Brandes Global Opportunities Fund 17,460 21,372 the "Statements of Comprehensive Income". Brandes Global Small Cap Equity Fund 41,009 23,173 Brandes International Equity Fund 12,509 9,166 Brandes U.S. Equity Fund 2,070 1,604 Lazard Defensive Global Dividend Fund (formerly 11,816 6,391 Lazard Global Managed Volatility Fund) Lazard Global Balanced Income Fund 2,078 2,056 Lazard Global Compounders Fund 2,637 1,567 Lazard International Compounders Fund 400 - Sionna Canadian Equity Fund 12,149 9,382 Sionna Opportunities Fund 1,696 129 Sionna Strategic Income Fund 4,107 3,626

NOTES TO THE FINANCIAL STATEMENTS 217 9. SECURITIES LENDING In January, 2020, Plaintiff in the Committee Action appealed the dismissal and the case remains on appeal. In the Individual Creditor Action, in July 2020, The Funds, other than the Morningstar Conservative Portfolio, Morningstar plaintiffs ﬁled a writ of certiorari seeking review by the Supreme Court of the Moderate Portfolio, Morningstar Balanced Portfolio, Morningstar Growth Portfolio, Second Circuit’s dismissal of their claims. The Supreme Court has yet to decide Morningstar Aggressive Portfolio, GQG Partners Global Quality Equity Fund, GQG whether it will hear the appeal. Partners International Quality Equity Fund have entered into a securities lending Brandes U.S. Equity Fund had approximately 27,000 shares of Tribune program with their custodian, State Street Bank & Trust Company, Canada. The repurchased by the company in 2007 for total proceeds of approximately U.S. fair value of securities on loan, fair value of collateral received, collateral % of $900,000. It is too soon to predict the outcome of the appeal and writ, but the securities on loan as at December 31, 2020 and 2019 and reconciliation between Manager expects that any appeals or claims against the Brandes U.S. Equity gross and net income from securities lending for the periods ended December 31, Fund will continue to be contested. 2020 and 2019 can be found in the Fund Speciﬁc Notes of the respective Funds. Other than with respect to the foregoing, the Manager is not aware of any material litigation outstanding, threatened or pending by or against the Funds. 10. CONTINGENT LIABILITIES

Brandes US Equity Fund is a named defendant, along with thousands of other entities and individuals, in a claim brought by creditors of a U.S. company, Tribune Company, in connection with the tendering or converting of shares of such company in a leveraged buyout. This multi-district proceeding consists of two main consolidated actions (the “Committee Action” and the “Individual Creditor Action”), but all claims against the non-insider defendants, including Brandes US Equity Fund, have been dismissed in both actions, subject to the exercise of appellate rights as referred to below.

218 NOTES TO THE FINANCIAL STATEMENTS CONTACTING US

Brandes Investment Partners & Co. (BIPCo), operating as Bridgehouse Asset Managers® (Bridgehouse), is the manager of the Bridgehouse Funds. Bridgehouse has hired Brandes Investment Partners, L.P. (BIPLP), Sionna Investment Managers Inc., TD Asset Management Inc. (TDAM), Lazard Asset Management (Canada) Inc., Morningstar Associates Inc. and GQG Partners LLC as portfolio sub-advisors in respect of the Bridgehouse Funds. BIPCo and BIPLP are affiliates. Units of the Bridgehouse Funds are available through registered dealers only and are not available through Bridgehouse.

Brandes Investment Partners®

CONTACT US 219 Bridgehouse Asset Managers | www.bridgehousecanada.com 33 Yonge Street | Suite 300 | Toronto, ON | M5E 1G4 | 416.306.5700 | 888.861.9998

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