IG BlackRock International Equity Fund

Annual Management Report of Fund Performance FOR THE PERIOD ENDED MARCH 31, 2021

CAUTION REGARDING FORWARD-LOOKING STATEMENTS This Annual Management Report of Fund Performance contains financial highlights but does not This report may contain forward-looking statements that reflect our current contain the complete annual financial statements of the . You may obtain a copy expectations or forecasts of future events. Forward-looking statements include of the annual financial statements, at no cost, by calling 1-888-746-6344 (1-800-661-4578 if you statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “intends”, “plans”, live in ) or by writing to us at 447 Portage Avenue, Winnipeg, Manitoba, R3B 3H5 (2001, “believes”, “estimates”, “preliminary”, “typical” and other similar expressions. boulevard Robert-Bourassa, bureau 2000, (Quebec), H3A 2A6 if you live in Quebec), or In addition, these statements may relate to future corporate actions, future by visiting the SEDAR website at www.sedar.com. financial performance of a fund or a security and their future investment strategies and prospects. Forward-looking statements are inherently subject to, Securityholders may also contact us using one of these methods to request a copy of the investment among other things, risks, uncertainties and assumptions that could cause actual events, results, performance or prospects to differ materially from those expressed fund’s interim financial report, proxy voting policies and procedures, proxy voting disclosure record in, or implied by, these forward-looking statements. These risks, uncertainties or quarterly portfolio disclosure. For more information, please refer to the Fund’s Simplified and assumptions include, without limitation, general economic, political Prospectus, Annual Information Form and Fund Facts, which may also be obtained, at no cost, using and market factors in North America and internationally, interest and foreign any of the methods outlined above. exchange rates, the volatility of global equity and capital markets, business competition, technological change, changes in government regulations, changes For the Fund’s current net asset values per security and for more recent information on general in securities laws and regulations, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, outbreaks of disease or pandemics market events, please visit our website at www.ig.ca (such as COVID-19), and the ability of manager to attract or retain key employees. References to “Consultant” or “Consultants” mean “Representative” or “Representatives” in Quebec. The foregoing list of important risks, uncertainties and assumptions is not exhaustive. Please consider these and other factors carefully and do not place undue reliance on forward-looking statements. The forward-looking information contained in this report is current only as of the date of this report. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

© Copyright Investors Group Inc. 2021 TM Trademarks, including IG Wealth Management, are owned by IGM Financial Inc. and licensed to its subsidiary corporations. IG BlackRock International Equity Fund ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE MARCH 31, 2021

For the year ended March 31, 2021, the Series U securities returned Management Discussion of 29.5% (after deducting fees and expenses paid by the Fund). In Fund Performance comparison, the MSCI EAFE (Net) Index returned 28.8%. JUNE 8, 2021 Stocks in developed markets outside North America advanced over the period. Improved economic activity, coupled with continued This management discussion of Fund performance presents views of the government and central bank stimulus, supported equity markets portfolio management team about the significant factors and developments even as some European countries entered COVID-19 lockdowns in during the past year that have affected the Fund’s performance and outlook. late March 2021. Although Australia and many European countries outperformed, U.K. equities underperformed despite the signing of Please read the Caution Regarding Forward-looking Statements located on a trade and co-operation agreement between the United Kingdom the first page of this document. and the European Union in December 2020. Asian markets generally Investment Objective and Strategies underperformed. Currency movements reduced returns in Canadian dollar terms. The Fund aims to provide long-term capital growth by investing primarily in a diversified selection of large-capitalization equity Within the MSCI EAFE (Net) Index, Austria, Sweden and the securities from Europe, Australia, Asia and the Far East. The Fund aims Netherlands were the strongest-performing countries in Canadian to achieve this exposure by investing primarily in Underlying Funds dollar terms, while Switzerland, Portugal and New Zealand were and/or directly in equity securities. the weakest. The materials, consumer discretionary and information technology sectors were the strongest performers, while health care, Risk consumer staples and energy were the weakest. The risks of the Fund remain as discussed in the Fund’s Simplified As at March 31, 2021, substantially all the net assets of the Fund were Prospectus. invested in BlackRock – IG International Equity Pool (the Underlying The Fund is suitable for long-term investors looking for capital growth Fund). who have a medium tolerance for risk. The Underlying Fund outperformed the index, with stock selection in the financials sector and an underweight position and stock selection Results of Operations in the health care sector contributing to performance. Stock selection CHANGES IN NET ASSETS in Japan and France also contributed. Stock selection in the materials The Fund’s net assets increased by over 940% during the period to sector detracted from performance, as did stock selection in Denmark $33.6 million. This change was comprised primarily of gains from and Germany. operations of $3.5 million and an increase of $26.9 million due to net securityholder activity. This level of securityholder activity relative to The Fund marginally increased holdings in the consumer discretionary net assets is often typical in recently launched funds. The Manager does sector and reduced investments in the health care sector toward the end not believe that this level of activity had a material impact on the Fund’s of the period. operations. Recent Developments FEES AND EXPENSES The portfolio management team of the Underlying Fund expects equity The management expense ratios (MERs) for all series are generally markets to continue to benefit from the reopening of economies in the similar to the MERs for the period ended March 31, 2020. Total wake of lockdowns and other measures taken to combat COVID-19. expenses paid vary period to period mainly as a result of changes in However, it believes that in many cases a return to economic growth average assets in each series. has already been factored into share prices and that equity markets INVESTMENT PERFORMANCE could become more volatile. Consequently, the team has been refining In accordance with National Instrument 81-106, the following its investment approach to more closely monitor price fluctuations of comparison to one or more market indices has been included to help you individual stocks relative to the market and overall market volatility. The understand the Fund’s performance relative to the general performance Fund is overweight in value-oriented stocks compared to growth stocks of the markets. However, the portfolio management team cautions that and to stocks that are sensitive to market momentum. the Fund’s mandate may be different from the index or indices shown. For a description of the index or indices, see Annual Compound Returns. Other Developments Also, it is important to note that investors cannot invest in an index. COVID-19 Indirect investments in an index are available; however, there are fees Governments worldwide have enacted various measures in seeking to and transaction costs and other variables that will impact returns when combat the spread of the COVID-19 virus. These measures have led investing in these products. Index returns included in the comparison to significant volatility in equity markets and material disruption to below do not reflect these costs and variables. In addition, unlike the businesses globally, resulting in an economic slowdown. index, this Fund may be subject to valuation adjustments as outlined in Ongoing uncertainty regarding the duration and long-term impact of the Fund’s valuation policies as it relates to non-North American equities the pandemic and the implementation of vaccination programs, as well held either directly or indirectly by the Fund. A fair value adjustment as the efficacy of government and central bank monetary and fiscal can either positively or negatively impact the Fund’s rate of return. interventions, may continue to affect the Fund’s performance in future For longer-term performance of the Fund, see the Past Performance periods. section of this report. IG BlackRock International Equity Fund ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE MARCH 31, 2021

Related Party Transactions Management Fees I.G. , Ltd. is the Manager, Trustee and Portfolio Advisor of the Fund. The Fund is only available for purchase The Fund pays a management fee, and this fee, paid by each series, is by other IG Wealth Management Funds and is not available for calculated as a percentage of the of the series at the close purchase by retail investors. The Manager, Portfolio Advisor and of each business day (see Series Information for rates payable by each Trustee are, indirectly, wholly owned subsidiaries of IGM Financial Inc. series). The management fee in Series U is used for investment advisory The Fund paid a management fee to the Manager and Portfolio Advisor and management services. for management and portfolio advisory services (see Management Fees). Securityholders in Series U pay the Distributor an advisory fee The Fund also paid the Manager an administration fee and in exchange (separate from the management fee) directly. This fee is not included in the Manager paid the operating costs and expenses of the Fund, except the Fund’s expenses. Distribution-related services were paid for out of for certain specified costs. the advisory fee and other revenue sources. The Trustee is responsible for the overall direction of the affairs of the Fund. The Fund paid the Trustee a fee for its services. See Series Information for the annual rates paid by each series (as a percent of average net assets) for these fees. Securityholders in Series U also pay an advisory fee directly to the Distributors. This fee is not included in the Fund’s expenses. During the period, the Fund invested substantially all of its assets in another IG Wealth Management Fund. There is no duplication of fees incurred by the Fund in connection with these investments. IG BlackRock International Equity Fund ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE MARCH 31, 2021

Summary of Investment Portfolio Summary of Composition of the Portfolio % of net assets The largest positions of the Underlying Fund (up to 25) at the end of PORTFOLIO ALLOCATION the period, and the major asset classes in which the Underlying Fund Equities 98.4 was invested, are indicated below in addition to direct positions, if any. Cash and cash equivalents 1.4 This summary of investment portfolio may change due to ongoing Other net assets (liabilities) 0.3 portfolio transactions. The summary of investment portfolio will be Total 100.0 updated as at the end of the next quarter. Please see the front page for REGIONAL ALLOCATION information about how it can be obtained. Europe ex U.K. 45.9 The Management Report of Fund Performance, Prospectus, Financial Japan 24.6 Statements and other information for the Underlying Fund are Pacific ex Japan 13.3 United Kingdom 12.3 available upon request, and at no cost, by using one of the methods United States 1.6 located on the front of this document. Middle East and Africa 0.7 98.4 Summary of Top 25 Long Positions SECTOR ALLOCATION % of net assets Financials 18.3 Nestle SA Reg. 1.8 Consumer Discretionary 15.8 Roche Holding AG Genusscheine 1.4 Industrials 14.7 Cash and cash equivalents 1.4 Consumer Staples 10.6 MSCI EAFE Index Futures 1.2 Information Technology 9.8 Novo Nordisk AS B 1.1 Health Care 9.0 Kering 1.1 Materials 7.5 AstraZeneca PLC 1.1 Communication Services 5.9 Compagnie Financiere Richemont SA 1.1 Energy 3.2 SAP AG 1.1 Other 3.6 BHP Billiton Ltd. 1.0 98.4 ASML Holding NV 1.0 Westpac Banking Corp. 1.0 Keyence Corp. 1.0 Recruit Holdings Co. Ltd. 0.9 Beiersdorf AG 0.9 Series Information Royal Dutch Shell PLC Class A 0.9 Aegon NV 0.8 Schneider Electric SE 0.8 Date Siemens AG 0.8 operations Management Service Administration Trustee AIA Group Ltd. 0.8 Series commenced fee (%) fee (%) fee (%) fee (%) Dassault Systemes SA 0.8 Series U 01/13/2020 0.85 - 0.18 0.05 SoftBank Group Corp. 0.8 Royal Dutch Shell PLC Class B 0.8 The fee rates in the table above are rounded to two decimals. Sumitomo Mitsui Financial Group Inc. 0.7 HSBC Holdings PLC 0.7 Inception dates of the series are shown if within 10 years. 25.0

Summary of Top 25 Short Positions % of net assets n/a -

IG BlackRock International Equity Fund ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE MARCH 31, 2021

Past Performance Annual Compound Returns The following table compares the historical annual compound returns It is important to remember that past performance doesn’t necessarily for each series with the index (or indices) shown below, for the periods indicate future performance. The returns presented below: shown ending March 31, 2021. • assume that all distributions, except for fee rebates, are reinvested into For a discussion of the Fund’s recent performance relative to the index the Fund; (or indices), see Results of Operations. • do not include sales charges, income taxes, optional expenses or advisory fees payable directly by securityholders in certain series, that reduce returns; Since (%) 1 yr 3 yrs 5 yrs 10 yrs inception • show performance based on Canadian dollar returns; and • show performance for each of the past 10 financial years, or since the Series U 29.5 n/a n/a n/a 4.3 series started. Financial years are for the 12 months ended March 31. MSCI EAFE (Net) Index 28.8 n/a n/a n/a 5.9 Inception dates within these periods are shown in Series Information. The MSCI EAFE (Europe, Australasia, Far East) (Net) Index represents large- and mid-cap equity performance across 21 developed markets, excluding the United States and Canada. Net total returns are calculated after the deduction of Year-by-Year Returns withholding tax from the foreign income and dividends of its constituents. These bar charts show how much an investment in securities made on the first day of each financial year would have increased or decreased by the end of the respective period. For the first year of a series, the percentage shown will be the actual return of the series from its inception date. The charts illustrate how the Fund’s performance has changed over time.

Series U

45% 29.5 30%

15%

0%

–15% –18.7 –30% Mar-20 Mar-21 IG BlackRock International Equity Fund ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE MARCH 31, 2021

Financial Highlights

The following tables show selected key financial information about Ratios and Supplemental Data the Fund and are intended to help you understand the Fund’s financial performance for each of the fiscal periods presented below. If during the Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31 Series U 2021 2020 2019 2018 2017 period a series was established or reinstated, “period” represents the period Total net asset value from inception or reinstatement to the end of that fiscal period. Series ($000’s) 33,617 3,229 n/a n/a n/a inception or reinstatement dates can be found under Series Information. Number of securities outstanding (000’s) 3,323 397 n/a n/a n/a

1 Management Net Assets per Security expense ratio (%)1 1.18 1.18 n/a n/a n/a Management expense Series U Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31 ratio before waivers (in $) 2021 2020 2019 2018 2017 or absorptions (%) 1.18 1.18 n/a n/a n/a Net assets, Trading expense beginning of period 8.13 10.00 n/a n/a n/a ratio (%)2 0.32 0.51 n/a n/a n/a Increase (decrease) Portfolio turnover from operations: rate (%)3 3.30 0.72 n/a n/a n/a Total revenue 0.30 - n/a n/a n/a Net asset value Total expenses (0.11) (0.02) n/a n/a n/a per security ($) 10.12 8.13 n/a n/a n/a Realized gains (losses) for the period 0.37 - n/a n/a n/a Unrealized gains (losses) for the period 1.34 (1.85) n/a n/a n/a 1 Management expense ratio (MER) is based on total expenses, excluding commissions and other portfolio transaction Total increase costs, income taxes, and withholding taxes, for the stated period and is expressed as an annualized percentage of daily (decrease) from average net assets during the period, except as noted. In the period a series is established, the MER is annualized operations2 1.90 (1.87) n/a n/a n/a from the date of inception to the end of the period. Where a Fund directly or indirectly via derivative contract invests in securities of another fund (including exchange-traded funds or ETFs), the MERs presented for the Fund include Distributions: the portion of MERs of the other fund(s) attributable to this investment. Any income distributions received from ETFs From net investment income managed by affiliates of the Manager, with the intention of offsetting fees paid within those ETFs but which are not (excluding Canadian dividends) (0.18) - n/a n/a n/a considered to be duplicative fees under regulatory requirements, are treated as waived expenses for MER purposes. From Canadian dividends - - n/a n/a n/a Certain expenses that are non-recurring and/or otherwise uncertain as to their future timing and amount have not been From capital gains (0.22) - n/a n/a n/a annualized. Return of capital - - n/a n/a n/a 2 The trading expense ratio (TER) represents total commissions and other portfolio transaction costs incurred as an Total annual annualized percentage of daily average net assets during the period. Where a Fund invests in securities of another fund distributions3 (0.40) - n/a n/a n/a (including exchange-traded funds or ETFs), the TERs presented for the Fund include the portion of TERs of the other fund(s) attributable to this investment. Net assets 3 at period end 10.12 8.13 n/a n/a n/a The Fund’s portfolio turnover rate indicates how actively the Fund’s Portfolio Advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. Generally, the higher a Fund’s portfolio turnover rate in a period, the greater the trading costs payable by it in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There 1 These calculations are prescribed by securities regulations and are not intended to be a reconciliation between opening is not necessarily a relationship between a high turnover rate and the performance of a Fund. Transactions incurred to and closing net assets per security. This information is derived from the Fund’s audited annual financial statements. The realign the Fund’s portfolio after a fund merger, if any, are excluded from the portfolio turnover rate. net assets per security presented in the financial statements may differ from the net asset value per security calculated for fund pricing purposes. An explanation of these differences, if any, can be found in the Notes to Financial Statements. 2 Net asset value and distributions are based on the actual number of securities outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of securities outstanding over the financial period. In the period a series is established, the financial information is provided from the date of inception to the end of the period. 3 Distributions were paid in cash, reinvested in additional securities of the Fund, or both.