As at September 30, 2020

This Interim Management Report of Fund Performance contains financial highlights but does not contain the Interim Financial Reports or Audited Annual Financial Statements of the investment Fund. You can request a copy of the Interim Financial Reports or Annual Financial Statements, at no cost, by contacting your mutual fund sales representative, by calling 514 286-3499, or toll free at 1 866 666-1280, by visiting desjardinsfunds.com and sedar.com, by e-mailing us at [email protected], or by writing us at 2 Complexe Desjardins, P.O. Box 9000, Desjardins Station, Montréal, Québec H5B 1H5. You may also contact us using one of these methods to request a copy of the investment fund’s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure. A NOTE ON FORWARD-LOOKING STATEMENTS

This report may contain forward-looking statements about the Fund, its future performance, strategies or prospects, and possible future Fund actions. The words “may”,“could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective” and similar expressions are intended to identify forward- looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that the predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statements made by the Fund. These factors include but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility. MESSAGE TO INVESTORS

ÉRIC LANDRY HEAD OF OPERATIONS DESJARDINS INVESTMENTS INC.

The 2019-2020 fiscal year ended on September 30, 2020, and I am pleased to share our Annual Management Report of Fund Performance. This document contains relevant information on the Desjardins Funds that you hold: Management Discussion of Fund Performance, Financial Highlights, Past Performance and Portfolio Overview. Overview of the economy and markets The 2019-2020 fiscal year was marked by an exceptional and highly uncertain global economic and health situation. The markets experienced considerable volatility before slowly stabilizing in the second quarter of 2020. The gradual reopening of economies, supported by significant stimulus packages, led to the strong rebound of major stock markets around the world. The pandemic remains the main source of uncertainty for the financial markets. Everything seems to suggest that it will be a few years before we see a return to a certain level of normalcy. New developments that enrich our line of funds Keeping your interests at heart, we proceeded to evolve our Desjardins Funds offering. We focused on the following three areas: 1. responsible investment; 2. evolution of our product range; 3. reduction of management fees. 1. Responsible investment Last March, we launched the Desjardins SocieTerra Diversity Fund. It is the only actively managed Canadian mutual fund focused on diversity and has a global reach. We have also added fossil fuel exclusions to our responsible investment policy. Beginning in June, Desjardins SocieTerra Funds and Portfolios are no longer investing in companies that derive a significant portion of their revenue from activities such as fossil fuel extraction and transportation. Furthermore, we introduced the new SocieTerra Moderate Portfolio to better meet your responsible investment needs. And we proudly celebrated the 30th anniversary of the Desjardins SocieTerra Environment Fund. 2. Evolution of the product range In April, we added the Chorus II 100% Equity Growth Portfolio, and in July, we launched the Desjardins Alt Long/Short Equity Market Neutral ETF Fund. The first aimed to meet a need among Chorus II Portfolio holders while the second provided a tool to manage increased volatility. We also acted diligently and made changes to certain funds, notably by making certain changes to fund managers or by merging funds with similar objectives. Very recently, sixteen Desjardins Funds were launched on the TSX NAVex platform, making Desjardins the largest fund manager on this platform. Desjardins Funds are now more accessible across Canada than they ever were. 3. Management fee reductions New management fee reductions took effect on October 1, 2020. They include fee reductions of up to 20 basis points for 39 Desjardins Funds. The changes reflect our commitment to always offer investment solutions at competitive prices while giving you access to world-class portfolio managers. A 2020-2021 fiscal year characterized by continuity Over the next year, we will stay focused on what really matters to you: access to simple, effective and adaptive investment solutions, tailored to your investor profile, offered at competitive rates, and accessible through online features or your representative. I thank you for the renewed confidence you have shown in us, and reiterate our commitment to always serve you better and to work with your interests at heart.

TRUST FUNDS - BALANCED FUNDS

Desjardins Québec Balanced Fund (A-, T-, I-, C-, R-, F-, S- AND D-CLASS UNITS)

MANAGEMENT DISCUSSION OF FUND PERFORMANCE The outbreak of the COVID-19 pandemic in February tipped the global economy toward a severe recession and brought back high volatility on financial markets. This Investment Objective and Strategies resurgence of volatility had a negative impact on the portfolio’s returns. As for Canadian equity, the health care, energy, real estate and financial sectors The objective of this Fund is to provide a reasonable income return and long-term underperformed over the period. The lacklustre performance of energy, real estate and capital appreciation through a portfolio comprised of Québec securities. Consequently, financials is directly related to the pandemic, which triggered a major economic the Fund invests in various equity or debt securities of Québec-based issuers, as well downturn. as term deposits in Québec-based financial institutions. For the management of fixed-income securities, the portfolio manager favours a Recent Developments management style that takes into account all of the risk factors associated with this type of security. For the management of equity securities, the portfolio manager Over the period, the S&P 500 performed well, while the S&P/TSX dipped slightly. But invests in securities of companies whose head office and principal decision-making the 12-month period had two distinct stages. From October 2019 to the end of centre are located in Québec. February 2020, the S&P/TSX climbed 8.85%, and then plunged 8.16% between March and the end of September 2020. The fluctuations in the S&P 500 and the S&P/TSX The Fund may use derivatives for hedging and non-hedging purposes. It may also were caused by the COVID-19 pandemic, which severely affected businesses and led engage in securities lending, repurchase and reverse repurchase transactions. to substantial earnings revisions. Risk Both the S&P 500 and the S&P/TSX presented similar profiles in terms of their sectoral components. Industries that did well during the pandemic, such as information Please note that no change taking place during the fiscal year had a material impact technology, consumer staples and gold mining, posted the strongest returns. on the overall risk linked to an investment in securities issued by this Fund.Said risk Unlike previous crises, the current situation began as a matter of public health, not the remains true to its description in the Simplified Prospectus as at March 31, 2020. economy. Consequently, the portfolio manager believes it will be hard for markets to Furthermore, the Fund is still intended for investors with a low to medium tolerance for sustain a recovery unless there’s at least some good news about the spread of the risk. virus that would make it possible to lift economic restrictions. Results of Operations Meanwhile, uncertainty has been fuelled by the U.S. presidential election, as well as the pandemic’s second wave and its impact on the global economic recovery. As of September 30, 2020, the Desjardins Québec Balanced Fund (A-Class units) Expectations that a vaccine will be discovered and additional fiscal stimulus posted a -1.46% return, compared to 3.81% for its benchmark, composed of the S&P/ implemented nevertheless offer some hope for next year. In light of these factors, the TSX Composite Index (Total return – 60%) and the FTSE Canada Mid-Term Overall portfolio manager is cautiously optimistic. Although potential returns are limited by Bond Index (40%). The S&P/TSX Composite Index (Total return) posted a -0.03% already-high multiples, low interest rates have resulted in a lack of alternative return for the same period. As opposed to the benchmark, the Fund’s performance is investment options, forcing investors to retain or expand their positions in Canadian net of fees and expenses. Please refer to the “Past Performance” section for the and U.S. equity. details of returns by class and to the “Other Material Information” section for more information on the benchmarks. Performance differences between classes of units are At present, investors don’t seem too concerned by the pandemic’s negative impact on mainly due to management fees charged to each class. corporate earnings for this year. Instead, they’re focusing more on analysts’ positive revisions and expectations of higher earnings for next year. But uncertainty over the Asset allocation, especially the underweight to Canadian bonds and overweight to end of the income support program for workers affected by the public health crisis is Canadian equity, detracted from returns, while security selection bolstered nevertheless having an impact, while volatility has increased and stock prices have performance. fallen in recent weeks. Consequently, risks taken with respect to asset allocation Consumer discretionary, utilities and health care contributed the most to the portfolio’s remain limited over the short and medium term. returns. The portfolio manager is maintaining its focus on defensive stocks and high-quality Within these sectors, BRP and Boralex were the top contributors to performance. The large-cap equity. underweight to underperforming Hexo also had a positive impact. Mr. Jacques Gagnon's term as Chair of the Independent Review Committee ("IRC") In contrast, the information technology and communication services sectors detracted ended on December 31, 2019 and was replaced by Mr. Jean-Pierre Duguay as Chair from relative performance. of the IRC. Mr. Claude Caty was appointed as a member of the IRC effective Within these sectors, Lightspeed and Cogeco Communications were the top detractors January 1, 2020. to performance. The allocation to corporate and municipal bonds bolstered returns during the period, while the allocation to preferred shares caused the portfolio to lose value within fixed income. Tactical adjustments away from the target allocations were limited over the period. The Fund maintained a slight overweight to Canadian equity and underweight to Canadian bonds over the first six months of the period. With growth prospects challenged by the COVID-19 pandemic, the portfolio manager reversed its positions by slightly underweighting equity to set aside some cash for the rest of the year. The portfolio manager overweighted the communication services sector by increasing its holdings in Cogeco Communications and Cogeco, among others. It also underweighted consumer discretionary by reducing its positions in Dollarama and BRP. The portfolio manager added positions in Cogeco Communications and Air Canada, and sold off its holdings in Power Corporation of Canada and Dollarama. There were no major changes to the portfolio during the period. Corporate bonds were slightly overweighted.

111 DESJARDINS QUÉBEC BALANCED FUND

Related Party Transactions Desjardins Securities Inc. (DSI) is an entity belonging to the same group as the Manager, DSI is a broker responsible for security transactions on behalf of the Fund. Desjardins Investments Inc. is the Fund’s Manager pursuant to the administration During the period, the amounts paid in commission by the Fund to DSI are: agreement. The Manager ensures the daily administration of the Fund. It provides the Fund or makes sure the Fund is provided with all services (accounting, custody, SEPTEMBER 30 SEPTEMBER 30 portfolio management, record maintenance, transfer agent) required to function 2020 2019 properly. The Fund pays management fees to the Manager, which are calculated on a $ $ daily basis with the net asset value of the Fund and paid weekly. These fees are COMMISSIONS PAID 87,148 52,917 shown in the “Management Fees” section of this Report. Management and Accrued expenses payable (receivable) to the Fund’s Manager are: administrative fees presented in the Statement of Comprehensive Income were incurred with the Manager of the Desjardins Funds. SEPTEMBER 30 SEPTEMBER 30 2020 2019 Desjardins Trust Inc., an entity belonging to the same group as the Manager, is the $ $ Fund’s trustee and custodian. As the Fund’s trustee, Desjardins Trust Inc. fees are EXPENSES PAYABLE (RECEIVABLE) 367,294 242,838 paid by the Manager. The custodian fees of Desjardins Trust Inc. are paid by the Manager and are established based on market conditions. Desjardins Global Asset Management Inc. (DGAM) is the portfolio manager of the Fund. DGAM is an entity belonging to the same group as the Manager. DGAM’s fees are entirely paid by the Manager.

FINANCIAL HIGHLIGHTS

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five periods, as applicable.

Net Assets per Unit (1) Beginning of operations in June 1987 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

A-CLASS $ $ $ $ $ $ Net assets, beginning of period — 24.20 22.85 22.78 21.78 20.65 Increase (decrease) from operations: Income(3) — 0.55 0.55 0.55 0.56 0.55 Realized gains (losses)(3) — 0.79 1.36 0.10 0.16 0.43 Unrealized gains (losses) — (1.21) 0.21 (0.05) 0.82 1.12 Expenses — (0.52) (0.54) (0.53) (0.53) (0.50) Total increase (decrease) from operations(2) — (0.39) 1.58 0.07 1.01 1.60

Distributions: From income (excluding dividends) — — — — — — From dividends — 0.27 0.28 — — 0.03 From underlying funds' distribution(3) — — — — — — From capital gains — 0.77 — — — 0.42 Return of capital — — — — — — Total Distributions(4) — 1.04 0.28 — — 0.45

Net Assets, End of Period — 22.84 24.20 22.85 22.78 21.78

Net Assets per Unit (1) Beginning of operations in December 2002 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

T-CLASS $ $ $ $ $ $ Net assets, beginning of period — 10.16 10.05 10.65 10.80 10.63 Increase (decrease) from operations: Income(3) — 0.23 0.23 0.25 0.27 0.28 Realized gains (losses)(3) — 0.33 0.58 0.05 0.08 0.23 Unrealized gains (losses) — (0.54) 0.09 (0.01) 0.38 0.55 Expenses — (0.22) (0.23) (0.24) (0.25) (0.25) Total increase (decrease) from operations(2) — (0.20) 0.67 0.05 0.48 0.81

Distributions: From income (excluding dividends) — — — — — — From dividends — 0.01 — 0.01 0.01 0.03 From underlying funds' distribution(3) — — — — — — From capital gains — 0.33 — — — 0.21 Return of capital — 0.26 0.59 0.64 0.62 0.39 Total Distributions(4) — 0.60 0.59 0.65 0.63 0.63

Net Assets, End of Period — 9.39 10.16 10.05 10.65 10.80

112 DESJARDINS QUÉBEC BALANCED FUND

Net Assets per Unit (1) Beginning of operations in June 2017 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017

I-CLASS $ $ $ $ $ Net assets, beginning of period — 11.23 10.43 10.16 10.00 Increase (decrease) from operations: Income(3) — 0.25 0.25 0.25 0.06 Realized gains (losses)(3) — 0.37 0.63 0.05 0.07 Unrealized gains (losses) — (0.57) 0.08 (0.02) 0.03 Expenses — (0.01) (0.01) — — Total increase (decrease) from operations(2) — 0.04 0.95 0.28 0.16

Distributions: From income (excluding dividends) — 0.14 0.09 — — From dividends — 0.19 0.11 — — From underlying funds' distribution(3) — — — — — From capital gains — 0.36 — — — Return of capital — — — — — Total Distributions(4) — 0.69 0.20 — —

Net Assets, End of Period — 10.64 11.23 10.43 10.16

Net Assets per Unit (1) Beginning of operations in November 2013 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

C-CLASS $ $ $ $ $ $ Net assets, beginning of period — 13.83 13.05 12.99 12.40 11.74 Increase (decrease) from operations: Income(3) — 0.32 0.32 0.32 0.32 0.32 Realized gains (losses)(3) — 0.45 0.78 0.06 0.09 0.20 Unrealized gains (losses) — (0.72) 0.12 (0.08) 0.48 0.70 Expenses — (0.29) (0.29) (0.29) (0.28) (0.26) Total increase (decrease) from operations(2) — (0.24) 0.93 0.01 0.61 0.96

Distributions: From income (excluding dividends) — — — — — — From dividends — 0.16 0.16 — — 0.03 From underlying funds' distribution(3) — — — — — — From capital gains — 0.44 — — — 0.24 Return of capital — — — — — — Total Distributions(4) — 0.60 0.16 — — 0.27

Net Assets, End of Period — 13.06 13.83 13.05 12.99 12.40

Net Assets per Unit (1) Beginning of operations in November 2013 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

R-CLASS $ $ $ $ $ $ Net assets, beginning of period — 10.16 10.04 10.63 10.77 10.58 Increase (decrease) from operations: Income(3) — 0.23 0.23 0.25 0.27 0.28 Realized gains (losses)(3) — 0.34 0.58 0.05 0.08 0.21 Unrealized gains (losses) — (0.48) 0.09 (0.05) 0.40 0.63 Expenses — (0.21) (0.21) (0.22) (0.24) (0.24) Total increase (decrease) from operations(2) — (0.12) 0.69 0.03 0.51 0.88

Distributions: From income (excluding dividends) — — — — — — From dividends — 0.02 0.02 0.03 0.03 0.04 From underlying funds' distribution(3) — — — — — — From capital gains — 0.30 — — — 0.20 Return of capital — 0.28 0.57 0.62 0.60 0.39 Total Distributions(4) — 0.60 0.59 0.65 0.63 0.63

Net Assets, End of Period — 9.42 10.16 10.04 10.63 10.77

113 DESJARDINS QUÉBEC BALANCED FUND

Net Assets per Unit (1) Beginning of operations in November 2013 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

F-CLASS $ $ $ $ $ $ Net assets, beginning of period — 14.52 13.57 13.37 12.63 11.84 Increase (decrease) from operations: Income(3) — 0.33 0.33 0.33 0.33 0.33 Realized gains (losses)(3) — 0.47 0.82 0.06 0.10 0.12 Unrealized gains (losses) — (0.81) 0.25 (0.08) 0.50 0.75 Expenses — (0.15) (0.16) (0.15) (0.15) (0.14) Total increase (decrease) from operations(2) — (0.16) 1.24 0.16 0.78 1.06

Distributions: From income (excluding dividends) — — — — — 0.01 From dividends — 0.22 0.19 — — 0.03 From underlying funds' distribution(3) — — — — — — From capital gains — 0.46 — — — 0.23 Return of capital — — — — — — Total Distributions(4) — 0.68 0.19 — — 0.27

Net Assets, End of Period — 13.81 14.52 13.57 13.37 12.63

Net Assets per Unit (1) Beginning of operations in November 2013 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

S-CLASS $ $ $ $ $ $ Net assets, beginning of period — 10.69 10.45 10.94 10.96 10.82 Increase (decrease) from operations: Income(3) — 0.25 0.21 0.26 0.28 0.29 Realized gains (losses)(3) — 0.35 0.61 0.05 0.08 0.09 Unrealized gains (losses) — (0.58) 0.08 0.07 0.41 0.97 Expenses — (0.11) (0.12) (0.12) (0.12) (0.13) Total increase (decrease) from operations(2) — (0.09) 0.78 0.26 0.65 1.22

Distributions: From income (excluding dividends) — — — 0.01 0.03 0.02 From dividends — 0.13 0.09 0.13 0.12 0.13 From underlying funds' distribution(3) — — — — — — From capital gains — 0.33 — — — 0.23 Return of capital — 0.27 0.52 0.53 0.50 0.41 Total Distributions(4) — 0.73 0.61 0.67 0.65 0.79

Net Assets, End of Period — 9.92 10.69 10.45 10.94 10.96

114 DESJARDINS QUÉBEC BALANCED FUND

Net Assets per Unit (1) Beginning of operations in May 2018 MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018

D-CLASS $ $ $ $ Net assets, beginning of period — 10.76 10.09 10.00 Increase (decrease) from operations: Income(3) — 0.24 0.25 0.11 Realized gains (losses)(3) — 0.35 0.60 0.05 Unrealized gains (losses) — (0.57) 0.08 (0.05) Expenses — (0.15) (0.15) (0.05) Total increase (decrease) from operations(2) — (0.13) 0.78 0.06

Distributions: From income (excluding dividends) — — — — From dividends — 0.19 0.14 — From underlying funds' distribution(3) — — — — From capital gains — 0.34 — — Return of capital — — — — Total Distributions(4) — 0.53 0.14 —

Net Assets, End of Period — 10.18 10.76 10.09 (1) This information is derived from the Fund’s audited annual financial statements. The net assets per unit presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. (2) Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of units outstanding over the period. (3) From September 30, 2016, distributions from underlying funds are presented separately. Previously, those amounts were split between the different types of revenues. Revenue and realized gains (losses) were revised, if applicable. (4) Distributions were paid in cash or reinvested in additional units of the Fund. Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

A-CLASS Total net asset value (’000s of $) — 474,002 500,506 492,370 498,197 398,626 Number of redeemable units outstanding — 20,753,360 20,681,804 21,543,255 21,871,352 18,301,952 Management expense ratio (%) (1) — 2.25 2.24 2.28 2.36 2.36 Management expense ratio before waivers and absorptions (%) — 2.25 2.24 2.28 2.36 2.36 Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 21.98 Net asset value per unit ($) — 22.84 24.20 22.85 22.78 21.78

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

T-CLASS Total net asset value (’000s of $) — 29,150 33,892 35,348 38,077 39,306 Number of redeemable units outstanding — 3,103,094 3,337,055 3,516,487 3,574,705 3,637,831 Management expense ratio (%) (1) — 2.25 2.25 2.28 2.36 2.36 Management expense ratio before waivers and absorptions (%) — 2.25 2.25 2.28 2.36 2.36 Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 21.98 Net asset value per unit ($) — 9.39 10.16 10.05 10.65 10.80

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017

I-CLASS Total net asset value (’000s of $) — 3,478 3,755 4,139 4,736 Number of redeemable units outstanding — 326,889 334,490 396,641 465,893 Management expense ratio (%) (2) — — — — — Management expense ratio before waivers and absorptions (%) — — — — — Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 Net asset value per unit ($) — 10.64 11.23 10.43 10.16

115 DESJARDINS QUÉBEC BALANCED FUND

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

C-CLASS Total net asset value (’000s of $) — 21,372 22,970 20,911 16,482 7,935 Number of redeemable units outstanding — 1,636,314 1,660,742 1,602,696 1,268,974 639,797 Management expense ratio (%) (1) — 2.16 2.14 2.16 2.22 2.19 Management expense ratio before waivers and absorptions (%) — 2.16 2.14 2.16 2.22 2.19 Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 21.98 Net asset value per unit ($) — 13.06 13.83 13.05 12.99 12.40

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

R-CLASS Total net asset value (’000s of $) — 125 199 213 204 188 Number of redeemable units outstanding — 13,309 19,629 21,206 19,188 17,421 Management expense ratio (%) (1) — 2.10 2.09 2.13 2.20 2.22 Management expense ratio before waivers and absorptions (%) — 2.10 2.09 2.13 2.20 2.22 Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 21.98 Net asset value per unit ($) — 9.42 10.16 10.04 10.63 10.77

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

F-CLASS Total net asset value (’000s of $) — 8,394 6,900 4,609 3,907 986 Number of redeemable units outstanding — 607,797 475,202 339,570 292,319 78,111 Management expense ratio (%) (1) — 1.07 1.07 1.10 1.16 1.14 Management expense ratio before waivers and absorptions (%) — 1.07 1.07 1.10 1.16 1.14 Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 21.98 Net asset value per unit ($) — 13.81 14.52 13.57 13.37 12.63

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018 SEPT. 30, 2017 SEPT. 30, 2016

S-CLASS Total net asset value (’000s of $) — 103 109 59 125 79 Number of redeemable units outstanding — 10,400 10,183 5,604 11,393 7,200 Management expense ratio (%) (1) — 1.04 1.06 1.06 1.10 1.16 Management expense ratio before waivers and absorptions (%) — 1.04 1.06 1.06 1.10 1.16 Trading expense ratio (%) (3) — 0.05 0.06 — 0.01 0.01 Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 22.43 21.98 Net asset value per unit ($) — 9.92 10.69 10.45 10.94 10.96

Ratios and Supplemental Data

MARCH 31 2020 SEPT. 30, 2020 SEPT. 30, 2019 SEPT. 30, 2018

D-CLASS Total net asset value (’000s of $) — 5,382 5,763 5,192 Number of redeemable units outstanding — 528,515 535,374 514,696 Management expense ratio (%) (1) — 1.39 1.39 1.39 Management expense ratio before waivers and absorptions (%) — 1.39 1.39 1.39 Trading expense ratio (%) (3) — 0.05 0.06 — Portfolio turnover rate (%) (4) — 51.36 40.54 23.97 Net asset value per unit ($) — 10.18 10.76 10.09 (1) Management expense ratio is based on total expenses (including applicable taxes, but excluding commissions and other portfolio transaction costs and excluding withholding taxes) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. (2) Management expense ratio relating to I-Class units is based on total expenses (including applicable taxes, but excluding commissions and other portfolio transaction costs and excluding withholding taxes, as well as management fees paid to the Manager, which may differ from one investor to another, as they are negotiated by each one of them directly with the Manager) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. (4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio manager 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. The higher a fund’s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund.

116 DESJARDINS QUÉBEC BALANCED FUND

Management Fees I-CLASS

Management fees payable to the Manager by the Desjardins Québec Balanced Fund 15 are calculated daily on the net asset value of the Fund at an annual rate of 1.80%. These fees are paid weekly. The major services paid by the management fees expressed as an approximate 9.56 percentage of said management fees may be summarized as follows: 10 • Administration of the Fund, investment portfolio management and 0.70 % profit margin • Dealer compensation 1.00 % 5 • Marketing expenses 0.10 % 2.65 1.65 0.78 PAST PERFORMANCE 0 Performance data assumes that all distributions of each class of the Fund for the 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 periods shown were reinvested in additional Fund units. However, it does not take into * Beginning of operations in June 2017. account purchases, redemptions, investments or other optional charges, and returns C-CLASS would be lower if it did.

20 The past performance of each class of the Fund is not necessarily indicative of future performance.

15 Annual Performance (%) 9.45 A-CLASS 10 8.04 7.67 7.26

20 4.73 5 14.69

15 12.86 0.45 0

10 -1.36 7.84 7.50 7.13 -5 4.58 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5 3.48 3.85 * Beginning of operations in November 2013. 0.34 R-CLASS 0

15 -1.46

-5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9.42 10 * Beginning of operations in June 1987. 7.99 7.64 7.30 T-CLASS 4.75 5 20

0.49 14.69

15 12.85 0 -1.31

10 7.84 7.54 7.14 -5 4.58 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5 3.48 3.85 * Beginning of operations in November 2013. 0.34 F-CLASS 0

15 -1.46

-5 10.49 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9.16 10 8.79 8.40 * Beginning of operations in December 2002. 5.84 5

1.54

0 -0.29

-5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 * Beginning of operations in November 2013.

117 DESJARDINS QUÉBEC BALANCED FUND

S-CLASS The Annual Compound Returns table compares the performance of each class of the Fund with one or several indices, which include reinvested income, but do not include 15 management and trading expenses.

10.49 Annual Compound Returns (%) SINCE 10 10 8.87 9.11 8.42 YEARS OR 5.90 SINCE INCEPTI 5 1 YEAR 3 YEARS 5 YEARS ON

1.57 A-CLASS A-Class Units -1.46 1.93 3.62 5.97 0 S&P/TSX Composite Index (Total return) -0.03 4.26 7.16 5.80 -0.27 Blended index* 3.81 5.27 6.14 5.53 T-CLASS T-Class Units -1.46 1.94 3.62 5.98 -5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 S&P/TSX Composite Index (Total return) -0.03 4.26 7.16 5.80 Blended index* 3.81 5.27 6.14 5.53 * Beginning of operations in November 2013. I-CLASS D-CLASS I-Class Units 0.78 4.26 4.45 S&P/TSX Composite Index (Total return) -0.03 4.26 5.09 15 Blended index* 3.81 5.27 5.37 C-CLASS C-Class Units -1.36 2.05 3.76 5.21

10 8.09 S&P/TSX Composite Index (Total return) -0.03 4.26 7.16 5.92 Blended index* 3.81 5.27 6.14 5.64 R-CLASS 5 R-Class Units -1.31 2.09 3.78 5.22 S&P/TSX Composite Index (Total return) -0.03 4.26 7.16 5.92 0.87 Blended index* 3.81 5.27 6.14 5.64 0 F-CLASS -0.61 F-Class Units -0.29 3.15 4.86 6.33 S&P/TSX Composite Index (Total return) -0.03 4.26 7.16 5.92 Blended index* 3.81 5.27 6.14 5.64 -5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 S-CLASS * Beginning of operations in May 2018. S-Class Units -0.27 3.18 4.88 6.35 S&P/TSX Composite Index (Total return) -0.03 4.26 7.16 5.92 These graphs present the annual performance of each class of the Fund for each fiscal Blended index* 3.81 5.27 6.14 5.64 year shown and illustrate the evolution of each class of the Fund from one year to the D-CLASS next. The last column shows the total performance of each class of the Fund for the D-Class Units -0.61 3.41 interim period ended September 30, 2020. These graphs also indicate, in percentage S&P/TSX Composite Index (Total return) -0.03 3.45 terms, how the value of an investment made on the first day of each fiscal year would Blended index* 3.81 5.42 have evolved as of the last day of that fiscal year or interim period. Returns may differ * The combined index is comprised as follows: from one category to another for a number of reasons, including if the category was S&P/TSX Composite Index (Total return) for 60% not issued and outstanding for the entire period under review and because of the FTSE Canada Mid-Term Overall Bond Index for 40% different levels of management fees and expenses. S&P/TSX Composite Index (Total return) The S&P/TSX Composite Index (Total return) is a capitalization-weighted index designed to measure market activity of stocks listed on the TSX. The index is the principal broad market measure for the Canadian equity markets. FTSE Canada Mid-Term Overall Bond Index A sub-index of the FTSE Canada Universe Bond Index, the FTSE Canada Mid-Term Overall Bond Index is designed to be a broad measure of the Canadianinvestment- grade fixed-income market. The index includes bonds with remaining effective terms greater than five years and less or equal to ten years. Please refer to the “Other Material Information” section for more information on the benchmark(s). Comparison with the Index As of September 30, 2020, the Desjardins Québec Balanced Fund (A-Class units) posted a -1.46% return, compared to 3.81% for its benchmark, composed of the S&P/ TSX Composite Index (Total return – 60%) and the FTSE Canada Mid-Term Overall Bond Index (40%). The S&P/TSX Composite Index (Total return) posted a -0.03% return for the same period. As opposed to the benchmark, the Fund’s performance is net of fees and expenses. Please refer to the “Past Performance” section for the details of returns by class and to the “Other Material Information” section for more information on the benchmarks. Performance differences between classes of units are mainly due to management fees charged to each class.

118 DESJARDINS QUÉBEC BALANCED FUND

PORTFOLIO OVERVIEW Top 25 Positions (Long Positions)* NET ASSET Net Asset Value Mix (%) Net Asset Value Mix (%) VALUE % As at September 30, 2019 As at September 30, 2020 1 Province of Québec, 2.500%, 2026-09-01 8.7 2 Province of Québec, 2.750%, 2028-09-01 8.2 3 Province of Québec, 2.300%, 2029-09-01 6.4 4 Province of Québec, 2.750%, 2027-09-01 5.3 5 Alimentation Couche-Tard, Class B 4.1 6 Province of Québec, 1.900%, 2030-09-01 4.1 7 Canadian National Railway Company 3.9 8 WSP Global 3.6 9 National Bank of Canada 3.3 10 CGI, Class A 3.2 11 BCE 3.2 12 Dollarama 3.2 13 Saputo Group 3.0 l 59.6 Equities 14 Power Corporation of Canada 3.0 Industrials 58.7 Equities 16.3 l 15 Québecor, Class B 2.9 11.4 Financials 13.7 Industrials 16 Metro 2.8 10.1 Consumer Staples 9.9 Consumer Staples 7.7 Consumer Discretionary 9.4 Financials 17 iA Financial Group 2.4 5.5 Communication Services 7.7 Communication Services 18 Gildan Activewear 2.2 3.7 Information Technology 6.8 Consumer Discretionary 19 Cash and Cash Equivalents 2.0 1.9 Materials 4.7 Information Technology 20 SNC-Lavalin Group 1.8 1.9 Utilities 3.1 Utilities 21 CAE 1.8 0.9 Real Estate 3.0 Materials 22 Boralex, Class A 1.6 0.2 Health Care 0.4 Real Estate 23 Stella-Jones 1.6 l 37.5 Canadian Bonds l 39.3 Canadian Bonds 24 Air Canada 1.6 34.1 Provincial Governments and 32.8 Provincial Governments and Crown Corporations Crown Corporations 25 Lightspeed POS 1.5 2.0 Municipalities and Semi- 3.2 Municipalities and Semi- Total 85.4 Public Institutions Public Institutions *There is no short position in this Fund. 1.4 Corporations 3.3 Corporations l 2.9 Cash and Cash Equivalents l 2.0 Cash and Cash Equivalents The Portfolio Overview may change due to ongoing Fund transactions. You can request copies of the quarterly update and other information regarding the Desjardins Funds, at no cost: Geographic Allocation (%) Geographic Allocation (%) As at September 30, 2019 As at September 30, 2020 • by contacting your representative; or • by calling 514 286-3499, or toll free at 1 866 666-1280; or • at desjardinsfunds.com; by e-mail, at [email protected]; or • through Desjardins Investments Inc. Desjardins Funds Customer Service 2 Complexe Desjardins P.O. Box 9000, Desjardins Station Montréal, Québec H5B 1H5

OTHER MATERIAL INFORMATION

l 97.1 Canada l 98.0 Canada A-Class units of this Fund are offered to all investors. The Fund’s investment portfolio l 2.9 Cash and Cash Equivalents l 2.0 Cash and Cash Equivalents is the same for all its unit classes. T-Class units of this Fund provide a monthly cash distribution consisting of net income, a non-taxable return of capital or a combination of both. They were designed for investors who wish to have an additional tax-advantaged income to complement their income from other sources. The Fund’s investment portfolio is the same for all its unit classes. I-Class units of this Fund are offered to large investors who make the required minimum investment. The Fund’s investment portfolio is the same for all its unit classes. C-Class units of this Fund are offered to investors who purchase units using an initial sales charge option, a deferred sales charge option or a low load sales charge option. These units are offered only if the investor’s dealer has reached a security agreement with the Fund’s Manager. The Fund’s investment portfolio is the same for all its unit classes. R-Class units of this Fund are offered to investors who purchase units using an initial sales charge option, a deferred sales charge option or a low load sales charge option. R-Class units provide a monthly cash distribution consisting of net income, a non- taxable return of capital or a combination of both. They were designed for investors who wish to have an additional tax-advantaged income to complement their income from other sources. These units are offered only if the investor’s dealer has reached a security agreement with the Fund’s Manager. The Fund’s investment portfolio is the same for all its unit classes.

119 DESJARDINS QUÉBEC BALANCED FUND

F-Class units of this Fund are offered to investors who compensate their dealer on a Neither S&P, its affiliates nor their third-party licensors guarantee the adequacy, “fee for service” basis, who have a dealer-sponsored wrap account or who pay their accuracy, timeliness or completeness of the Index or any other data included therein or dealer an annual fee and where the dealer does not receive trailing commissions. any communications, including but not limited to, oral or written communications These units are offered only if the investor’s dealer has reached a security agreement (including electronic communications) with respect thereto. S&P, its affiliates and their with the Fund’s Manager. The Fund’s investment portfolio is the same for all its unit third-party licensors shall not be subject to any damages or liability for any errors, classes. omissions or delays therein. S&P makes no express or implied warranties, and S-Class units of this Fund are offered to investors who compensate their dealer on a expressly disclaims all warranties of merchantability or fitness for a particular purpose “fee for service” basis, who have a dealer-sponsored wrap account or who pay their or use with respect to the brands, the Index or any data included therein. Without dealer an annual fee and where the dealer does not receive trailing commissions. S- limiting any of the foregoing, in no event whatsoever shall S&P, its affiliates or their Class units provide a monthly cash distribution consisting of net income, a non-taxable third-party licensors be liable for any indirect, special, incidental, punitive or return of capital or a combination of both. They were designed for investors who wish consequential damages, including but not limited to, loss of profits, trading losses, lost to have an additional tax-advantaged income to complement their income from other time or goodwill, even if they have been advised of the possibility of such damages, sources. These units are offered only if the investor’s dealer has reached a security whether in contract, tort, strict liability or otherwise. agreement with the Fund’s Manager. The Fund’s investment portfolio is the same for all its unit classes. D-Class units of this Fund are offered to investors who purchase their units through Disnat Online Brokerage or an account with a discount broker and who compensate the discount broker’s firm on a “fee for service” basis; the discount broker’s firm receives lower trailing commissions from the Manager for these units. These units are offered on a no-load basis, that means no initial sales charge and no deferred sales charge. However, the broker executing the transaction may charge the investor execution fees for any transaction on such securities. These execution fees can be negotiated between the investor and the discount broker. The investor should refer to the agreement entered with his or her discount broker for more information. These units are offered only if the investor’s discount brokerage firm has reached a security agreement with the Manager. FTSE Global Debt Capital Markets Inc (FTSE GDCM), FTSE International Limited (FTSE) and the London Stock Exchange Group companies (the Exchange, together with FTSE GDCM, FTSE and the Exchange, the “Licensor Parties”). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Canada Universe Bond Index (the Index) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE GDCM and all copyright in the Index values and constituent lists vests in FTSE GDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein. FTSE® is a trademark of the FTSE International Limited and is used by FTSE GDCM under licence. S&P Indices are trademarks of the Standard & Poor’s Financial Services LLC (S&P). This Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s, a division of the Standard & Poor’s Financial Services LLC (S&P). Standard & Poor’s makes no representations with regard to the Fund’s relevance. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s, a division of the Standard & Poor’s Financial Services LLC (S&P) or its third-party licensors. Neither S&P nor its third-party licensors makes any representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in generally or in the Fund particularly or the ability of the S&P/TSX Composite Index (the Index) to track general stock market performance. S&P’s and its third-party licensor’s only relationship to Desjardins Investments Inc. is the licensing of certain trademarks and trade names of S&P and the third-party licensors and of the Index which is determined, composed and calculated by S&P or its third-party licensors without regard to Desjardins Investments Inc. or the Fund. S&P and its thirdparty licensors have no obligation to take the needs of Desjardins Investments Inc. or the owners of the Fund into consideration in determining, composing or calculating the Index. Neither S&P nor its third-party licensors is responsible for and has not participated in the determination of the prices and amount of the Fund or the timing of the issuance or sale of the Fund or in the determination or calculation of the equation by which the Fund is to be converted into cash. S&P has no obligation or liability in connection with the administration, marketing or trading of the Fund.

120 Desjardins Investments Inc. Desjardins Funds Customer Service 514 286-3499 (for the Montréal area) 1 866 666-1280 [email protected] desjardinsfunds.com