december 2013 - the co-operators

Co-operators Life Insurance CompanyPooled Investment Funds

Financial Statements

December 31, 2013


Table of Contents

Auditor's Report 1Board Approval 3

Co-operators Balanced Fund 4Co-operators Canadian Equity Fund 9Co-operators Canadian Fixed Income Fund 12Co-operators Canadian Resource Fund 16Co-operators Money Market Fund 19Co-operators U.S. Equity Fund 22Co-operators U.S. Growth Fund 25Co-operators AGF Clean Environment Equity Fund 28Co-operators AGF Social Values Balanced Fund 30Co-operators AGF Social Values Equity Fund 32Co-operators Acuity Social Values Global Equity Fund 34Co-operators Bissett Canadian Dividend Fund 36Co-operators Ethical Balanced Fund 38Co-operators Ethical Canadian Equity Fund 40Co-operators Ethical International Equity Fund 42Co-operators Ethical Select Balanced Portfolio 44Co-operators Ethical Select Growth Portfolio 46Co-operators Ethical Select Conservative Portfolio 48Co-operators Ethical Select Income Portfolio 50Co-operators Fidelity Canadian Bond Fund 52Co-operators Fidelity Global Fund 54Co-operators Fidelity True North® Fund 56Co-operators Mawer Balanced Fund 58Co-operators Mawer Canadian Equity Fund 60Co-operators Mawer International Equity Fund 62Co-operators Trimark Canadian Bond Fund 64Co-operators Trimark Canadian Class Fund 66Co-operators Trimark Global Fundamental Equity Fund 68Co-operators Trimark Government Plus Income Fund 70Co-operators Aggressive Balanced Fund 72Co-operators Conservative Balanced Fund 75Co-operators Aggressive Portfolio 78Co-operators Conservative Portfolio 81Co-operators Moderate Portfolio 84Co-operators Very Aggressive Portfolio 87Co-operators Very Conservative Portfolio 90Co-operators SRI Aggressive Portfolio 93Co-operators SRI Moderate Portfolio 95 Co-operators SRI Very Aggressive Portfolio 97

Notes to the Financial Statements 99

Effective March 1, 2012, Acuity Funds Ltd. amalgamated with its affiliate AGF Investments Inc. The amalgamated entity, AGF Investments Inc., continues as the manager of the funds previously managed by Acuity Funds Ltd.BlackRock® is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission.Fidelity Investments® and True North® are registered trademarks of FMR LLC.Franklin Bissett Investment Management is part of Franklin Templeton Investments Corp.Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. Trimark®, Knowing pays® and all associated trademarks are trademarks of Invesco Canada Ltd. © Invesco Canada Ltd., 2013Northwest Funds, NEI Investments and Ethical Funds are divisions of Northwest & Ethical Investments. Northwest Funds, NEI Investments andEthical Funds are registered marks and trademarks are owned by Northwest & Ethical Investments L.P.Phillips, Hager & North Investment Management® is a division of RBC Global Asset Management Inc., an indirect, wholly-owned subsidiary of Royal Bank of Canada. RBC GAM Inc. is the manager and the principal portfolio adviser for the Phillips, Hager & North (PH&N) Funds.

PricewaterhouseCoopers LLP, Chartered Accountants Richardson Building, One Lombard Place, Suite 2300, Winnipeg, Manitoba, Canada R3B 0X6 T: +1 204 926 2400, F: +1 204 944 1020, www.pwc.com/ca “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

February 12, 2014 Independent Auditor’s Report To the Unitholders of Co-operators Life Insurance Company Pooled Investment Funds (collectively the Funds) We have audited the accompanying financial statements of each of the Funds, which comprise the statements of net assets as at December 31, 2013 and the statements of operations and changes in net assets for the year then ended, and the related notes, which comprise a summary of significant accounting policies and other explanatory information for each of the Pooled Investment Funds of Co-operators Life Insurance Company listed below. Co-operators Balanced Fund Co-operators Fidelity Global Fund Co-operators Canadian Equity Fund Co-operators Fidelity True North® Fund Co-operators Canadian Fixed Income Fund Co-operators Mawer Balanced Fund Co-operators Canadian Resource Fund Co-operators Mawer Canadian Equity Fund Co-operators Money Market Fund Co-operators Mawer International Equity Fund Co-operators U.S. Equity Fund Co-operators Trimark Canadian Bond Fund Co-operators U.S. Growth Fund Co-operators Trimark Canadian Class Fund Co-operators AGF Clean Environment Equity Fund Co-operators Trimark Global Fundamental Equity Co-operators AGF Social Values Balanced Fund Co-operators Trimark Government Plus Income Fund Co-operators AGF Social Values Equity Fund Co-operators Aggressive Balanced Fund Co-operators Acuity Social Values Global Equity Fund Co-operators Conservative Balanced Fund Co-operators Bissett Canadian Dividend Fund Co-operators Aggressive Portfolio Co-operators Ethical Balanced Fund Co-operators Conservative Portfolio Co-operators Ethical Canadian Equity Fund Co-operators Moderate Portfolio Co-operators Ethical International Equity Fund Co-operators Very Aggressive Portfolio Co-operators Ethical Select Balanced Portfolio Co-operators Very Conservative Portfolio Co-operators Ethical Select Growth Portfolio Co-operators SRI Aggressive Portfolio Co-operators Ethical Select Conservative Portfolio Co-operators SRI Moderate Portfolio Co-operators Ethical Select Income Portfolio Co-operators SRI Very Aggressive Portfolio Co-operators Fidelity Canadian Bond Fund

In addition, we have audited the statements of investment portfolios as at December 31, 2013 for the following funds: Co-operators Balanced Fund Co-operators Money Market Fund Co-operators Canadian Equity Fund Co-operators U.S. Equity Fund Co-operators Canadian Fixed Income Fund Co-operators U.S. Growth Fund Co-operators Canadian Resource Fund Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements of each of the Funds in accordance with Canadian generally accepted accounting principles, 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. Auditor’s responsibility Our responsibility is to express an opinion on the financial statements of each of the Funds based on each of our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in each of our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements of each of the Funds present fairly, in all material respects, the financial position of each of the Funds as at December 31, 2013 and the investment portfolio of each of the Funds listed in the second paragraph above as at December 31, 2013 and the results of each of their operations and the changes in each of their net assets for the year then ended in accordance with Canadian generally accepted accounting principles. Chartered Accountants

2


Board ApprovalStatements of Net AssetsAs at December 31, 2013 with comparatives at December 31, 2012

Statements of OperationsFor the year or period ended December 31, 2013 with comparatives for December 31, 2012

Statements of Changes in Net AssetsFor the year or period ended December 31, 2013 with comparatives for December 31, 2012

Statements of Investment PortfolioCo-operators Balanced FundCo-operators Canadian Equity FundCo-operators Canadian Fixed Income FundCo-operators Canadian Resource FundCo-operators Money Market FundCo-operators U.S. Equity FundCo-operators U.S. Growth Fund

Top Holdings of Underlying FundsCo-operators AGF Clean Environment Equity FundCo-operators AGF Social Values Balanced FundCo-operators AGF Social Values Equity FundCo-operators Bissett Canadian Dividend FundCo-operators Ethical Balanced FundCo-operators Ethical Canadian Equity FundCo-operators Ethical International Equity FundCo-operators Ethical Select Balanced PortfolioCo-operators Ethical Select Growth PortfolioCo-operators Ethical Select Conservative PortfolioCo-operators Ethical Select Income PortfolioCo-operators Fidelity Canadian Bond FundCo-operators Fidelity Global FundCo-operators Fidelity True North® Fund Co-operators Mawer Balanced FundCo-operators Mawer Canadian Equity FundCo-operators Mawer International Equity FundCo-operators Aggressive Balanced FundCo-operators Conservative Balanced FundCo-operators Aggressive PortfolioCo-operators Conservative PortfolioCo-operators Moderate PortfolioCo-operators Very Aggressive PortfolioCo-operators Very Conservative Portfolio

Notes to the Financial Statements

Approved by the Board of Directors

Director Director

3


Co-operators Balanced FundFund managed by Addenda Capital Inc.

Statement of Net Assets Statement of Changes in Net AssetsAs at December 31 For the years ended December 31

2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 16 165 Net assets at beginning of year 127,388 122,908 Short-term notes 3,359 1,345 Investment Income receivable 335 409 Increase (decrease) in net assets from operations 11,907 7,021 Bonds and debentures 37,996 47,190 Stocks 64,635 78,601 Transactions with unitholders

106,341 127,710 Unitholders' contributions 8,438 11,879 Unitholders' withdrawals (40,784) (11,933)

Liabilities Transfers (to) from other funds (780) (2,487) Payments for investments purchased - 160 Net increase (decrease) from unitholders' transactions (33,126) (2,541) Payables for management and audit fees (note 7) 172 162

172 322 Net assets at end of year 106,169 127,388 Net assets 106,169 127,388

Statement of Operations

For the years ended December 312013 2012

($000's) ($000's)Investment Income

Dividend income 1,520 1,863 Interest income - bonds and debentures 1,510 1,787 Interest income - short term notes 30 29 Foreign exchange gain (loss) (211) (221) Other income 9 8

2,858 3,466

ExpensesManagement fees (notes 7 and 9) 1,809 1,898 Audit, legal and other fees (note 9) 28 42 Transaction costs 108 75

1,945 2,015

Net investment income (loss) 913 1,451

Gains (losses) on investmentsRealized gains (losses) 4,647 1,975 Unrealized gains (losses) 6,347 3,595

10,994 5,570

Increase (decrease) in net assets from operations 11,907 7,021

4


Co-operators Balanced Fund

Statement of Investment PortfolioAs at December 31, 2013

Shares or Average Fair Shares or Average FairPar Value Investment Cost ($) Value ($) Par Value Investment Cost ($) Value ($)

CASH AND CASH EQUIVALENTS CORPORATE4,086 CANADIAN DOLLAR 4,086 4,086 COMMUNICATION 1.56%

11,556 US DOLLARS 12,278 12,278 REGULAR BONDS15,642 16,364 16,364 90,000 BELL ALIANT,3.540%,2020-06-12 90,000 88,565

70,000 BELL CANADA,3.250%,2020-06-17 69,948 68,510SHORT TERM NOTES 345,000 BELL CANADA,4.700%,2023-09-11 354,957 351,896DISCOUNT NOTES 3.17% 520,000 ROGERS COMM INC,5.340%,2021-03-22 566,137 565,676

3,375,000 CANADA T BILLS T/B,DISC.%,2014-06-05 3,359,412 3,359,412 70,000 ROGERS COMM INC,6.680%,2039-11-04 69,928 81,4663,375,000 3,359,412 3,359,412 20,000 SHAW COMMUNICATIONS,5.650%,2019-10-01 22,252 22,004

110,000 SHAW COMMUNICATIONS,5.500%,2020-12-07 110,773 119,962BONDS AND DEBENTURES 130,000 TELUS CORP,3.350%,2024-04-01 118,909 118,999CANADA 45,000 TELUS CORP,4.400%,2043-04-01 44,895 39,676FEDERAL GOVERNMENT 9.81% 125,000 TELUS CORP,5.150%,2043-11-26 124,375 124,138REGULAR BONDS 1,525,000 1,572,174 1,580,892

850,000 CANADA GOVT,2.500%,2015-06-01 871,299 867,34950,000 CANADA GOVT,3.000%,2015-12-01 51,860 51,769 MAPLES

200,000 CANADA GOVT,1.250%,2018-03-01 193,852 195,542 75,000 AT&T INC,3.825%,2020-11-25 75,000 75,030680,000 CANADA GOVT,4.250%,2018-06-01 754,978 749,482800,000 CANADA GOVT,1.250%,2018-09-01 777,802 775,072 ENERGY 1.29%500,000 CANADA GOVT,3.500%,2020-06-01 546,802 537,880 REGULAR BONDS395,000 CANADA GOVT,2.750%,2022-06-01 408,116 397,702 274,091 ALLIANCE PIPELINE,7.217%,2025-12-31 273,984 323,815

80,000 CANADA GOVT,2.500%,2024-06-01 77,800 77,279 25,000 ALTAGAS LTD,3.570%,2023-06-12 24,981 23,565120,000 CANADA GOVT,5.750%,2033-06-01 170,015 164,687 115,000 CAPITAL POWER LP,4.600%,2015-12-01 114,963 119,681275,000 CANADA GOVT,5.000%,2037-06-01 399,190 355,570 90,000 CU INC,4.722%,2043-09-09 90,000 91,671350,000 CANADA GOVT,4.000%,2041-06-01 417,732 398,132 40,000 CU INC,4.558%,2053-11-07 40,000 39,184290,000 CANADA GOVT,3.500%,2045-12-01 305,680 304,523 75,000 ENBRIDGE INC,3.940%,2023-06-30 75,000 73,930

2,225,000 CANADA HOUSING TRST,3.150%,2014-06-15 2,251,015 2,246,360 140,000 ENBRIDGE INC,5.750%,2039-09-02 139,861 157,345125,000 CANADA HOUSING TRST,1.850%,2016-12-15 125,523 126,500 105,000 ENBRIDGE INC,4.240%,2042-08-27 104,929 94,731525,000 CANADA HOUSING TRST,1.700%,2017-12-15 513,392 521,351 90,000 ENBRIDGE PIPEL. INC.,8.200%,2024-02-15 127,514 120,404900,000 CANADA HOUSING TRST,3.350%,2020-12-15 930,589 938,871 85,000 INTER PIPELINE LTD,3.448%,2020-07-20 85,000 84,754375,000 CANADA POST CORP,4.360%,2040-07-16 431,924 409,916 114,352 NORTH BATTLEFORD PWR,4.958%,2032-12-31 114,360 115,886

95,000 MUSKRAT FALLS,3.630%,2029-06-01 96,614 95,900 10,000 SUNCOR ENERGY INC,5.390%,2037-03-26 9,972 10,543499,576 PEOPLES TR 96502893,4.000%,2016-01-01 471,866 522,392 65,000 TRANSCANADA PIPELINE,8.050%,2039-02-17 107,315 95,131360,000 PSP CAPITAL INC,2.940%,2015-12-03 364,159 369,500 15,000 TRANSCANADA PIPELINE,4.550%,2041-11-15 14,928 14,664180,000 PSP CAPITAL INC,2.260%,2017-02-16 179,950 182,284 1,243,443 1,322,807 1,365,304115,000 PSP CAPITAL INC,3.030%,2020-10-22 114,956 115,202

9,989,576 10,455,114 10,403,263 FINANCIAL PRODUCTS 6.09%REGULAR BONDS

PROVINCIAL AND GUARANTEED 11.26% 190,000 AMERICAN EXPRESS CDA,3.600%,2016-06-03 200,011 197,534REGULAR BONDS 165,000 BANK NOVA SCOTIA FF,2.898%,2022-08-03 165,544 166,873

550,000 55 SCHOOL BOARD TR,5.900%,2033-06-02 578,194 640,860 240,000 BANK NOVA SCOTIA FF,3.036%,2024-10-18 241,189 236,986190,000 BC PROV,8.000%,2023-09-08 281,413 261,060 170,000 BANK OF MONTREAL,3.400%,2021-04-23 169,866 169,461420,000 BC PROV,6.350%,2031-06-18 594,674 548,344 225,000 BANK OF MONTREAL FF,3.979%,2021-07-08 229,241 234,754135,000 BC PROV,4.700%,2037-06-18 140,156 149,373 50,000 BANK OF NOVA SCOTIA,2.242%,2018-03-22 50,000 49,281360,000 CADILLAC FAIRVIEW FT,3.640%,2018-05-09 359,957 377,719 160,000 BMO CAP TRUST FF,10.221%,2107-12-31 214,432 209,141370,000 CADILLAC FAIRVIEW FT,4.310%,2021-01-25 369,383 398,335 40,000 CAISSE CENTRALE DES,2.795%,2018-11-19 40,000 39,804485,000 CDP FINANCIAL FRN,1.725%,2015-07-15 486,665 486,862 150,000 CAP DESJ.INC FF,5.541%,2021-06-01 162,479 162,156

1,175,000 FINANCEMENT QUEBEC,1.668%,2018-06-01 1,180,401 1,185,763 40,000 CAP DESJARDINS,5.187%,2020-05-05 40,000 43,990250,000 FINANCEMENT QUEBEC,2.450%,2019-12-01 249,378 246,150 70,000 CIBC CAP TRUST FF,10.250%,2108-06-30 93,830 96,064200,000 MANITOBA PROV,4.400%,2025-09-05 229,888 212,162 65,000 CIBC FF,3.150%,2020-11-02 66,996 66,353185,000 MANITOBA PROV,4.650%,2040-03-05 183,762 200,779 55,000 DAIMLER CANADA FIN,2.280%,2017-02-17 54,999 55,046230,000 NEW BRUNSWICK PROV,4.800%,2041-06-03 223,657 250,215 130,000 EMPIRE LIFE INS,2.870%,2023-05-31 130,000 128,258215,000 NEWFOUNDLAND PROV,4.500%,2037-04-17 246,647 225,939 95,000 FORD CREDIT CANADA,3.700%,2018-08-02 95,000 97,112200,000 NOVA SCOTIA PROV,5.800%,2033-06-01 269,460 244,948 90,000 GE CAP CAN FUNDING,2.420%,2018-05-31 89,996 89,042135,000 ONT SCHL FIN,5.700%,2017-10-11 141,214 151,575 50,000 GE CAP CAN FUNDING,3.550%,2019-06-11 49,887 51,434365,000 ONT STRAT INFRA FIN,4.600%,2015-06-01 369,721 381,053 95,000 GENWORTH MI CDA,5.680%,2020-06-15 94,953 103,461

75,000 ONTARIO PROV,2.850%,2023-06-02 70,914 70,877 125,000 HSBC BANK CANADA,2.572%,2015-11-23 125,000 126,774860,000 ONTARIO PROV,6.500%,2029-03-08 1,119,771 1,108,153 105,000 IGM FINANCIAL,7.350%,2019-04-08 104,941 125,430780,000 ONTARIO PROV,4.650%,2041-06-02 858,045 841,183 50,000 JOHN DEERE CANADA,2.650%,2018-07-16 49,994 49,904450,000 ONTARIO PROV FRN,1.428%,2018-12-03 449,683 449,852 290,000 MANULIFE FIN CORP FF,7.405%,2108-12-31 305,936 344,725195,000 OPB FINANCE TRUST,3.890%,2042-07-04 194,864 172,947 40,000 MANULIFE FINL CORP,5.161%,2015-06-26 43,280 41,974

1,740,000 QUEBEC PROV,3.000%,2023-09-01 1,740,184 1,649,433 55,000 MANULIFE FINL CORP,5.505%,2018-06-26 60,932 60,894145,000 QUEBEC PROV,8.500%,2026-04-01 210,887 209,178 145,000 NBC ASSET TRUST FF,7.235%,2049-06-30 167,590 169,382500,000 QUEBEC PROV,6.250%,2032-06-01 692,768 630,455 80,000 RBC CAPITAL TRUST FF,6.821%,2049-06-30 80,000 92,702350,000 QUEBEC PROV,5.000%,2038-12-01 421,567 388,178 320,000 ROYAL BANK CDA,5.950%,2014-06-18 347,503 326,165450,000 QUEBEC PROV FRN,1.460%,2018-12-19 450,000 450,000 255,000 ROYAL BANK CDA,2.364%,2017-09-21 256,973 254,288

11,010,000 12,113,253 11,931,393 125,000 ROYAL BANK CDA,2.890%,2018-10-11 124,989 125,335230,000 ROYAL BANK CDA FF,3.180%,2020-11-02 230,666 234,899

MUNICIPAL 1.72% 165,000 ROYAL BANK CDA FF,2.990%,2024-12-06 165,000 162,332REGULAR BONDS 120,000 SUN LIFE CAP TRUST,5.863%,2108-12-31 120,000 134,376

305,000 BC MUNI FINANCE,4.150%,2021-06-01 336,906 323,962 290,000 SUN LIFE FIN INC FF,4.950%,2036-06-01 301,920 307,371185,000 CITY OF TORONTO,3.900%,2023-09-29 184,469 185,844 255,000 TD CAPITAL SECUR. FF,7.243%,2049-12-31 255,171 302,794200,000 MONTREAL PQ,5.000%,2018-12-01 222,860 220,466 70,000 TD CAPITAL TRUST FF,10.000%,2108-06-30 97,240 95,971100,000 SOUTH COAST BC TRAN,4.450%,2044-06-09 99,768 99,463 35,000 TMX GROUP,3.253%,2018-10-03 35,000 35,171480,000 TORONTO ON,4.500%,2019-12-02 478,517 521,433 115,000 TORONTO DOMINION BK,2.433%,2017-08-15 115,000 115,298455,000 YORK ON,4.000%,2021-06-30 498,091 475,125 75,000 VW CREDIT CDA,2.200%,2016-10-11 74,923 75,378

1,725,000 1,820,611 1,826,293 50,000 VW CREDIT CDA,2.450%,2017-11-14 49,911 49,841

5





REGULAR BONDS (CONTINUED) 24,460 ENSIGN ENERGY SERVCS,0.470%,COMMON 375,944 408,23765,000 WELLS FARGO FIN CDA,2.944%,2019-07-25 65,000 64,582 7,150 KEYERA CORP,2.400%,COMMON 329,393 455,956

160,000 WELLS FARGO FIN CDA,3.460%,2023-01-24 160,000 154,344 22,050 LEGACY OIL+GAS,0.000%,COMMON 251,312 135,1675,300,000 5,525,392 5,646,680 14,900 PEMBINA PIPELINE,1.680%,COMMON 485,631 557,409

5,840 SHAWCOR LTD,0.500%,COMMON 167,922 248,083MAPLES 77,590 SUNCOR ENERGY INC,0.800%,COMMON 2,812,367 2,887,124

100,000 GOLDMAN SACHS GROUP,3.375%,2018-02-01 99,868 101,078 22,136 TALISMAN ENERGY INC,0.270%,COMMON 348,189 273,158305,000 GREAT WEST LIFECO FF,5.691%,2067-06-21 335,146 333,733 11,360 TOURMALINE OIL CORP,0.000%,COMMON 393,941 507,224150,000 JPMORGAN CHASE & CO,2.920%,2017-09-19 151,046 150,857 29,480 TRANSCANADA CORP,1.840%,COMMON 1,231,240 1,429,190145,000 MET LIFE GLOB FUND,2.624%,2015-04-10 145,665 146,581 5,260 TRILOGY ENERGY CORP,0.420%,COMMON 152,498 145,176

75,000 MET LIFE GLOB FUND,3.027%,2020-06-11 75,000 73,342 424,486 11,736,783 12,939,463775,000 806,725 805,591

MATERIALS 5.33%INDUSTRIAL PRODUCTS 0.66% 5,540 AGRIUM INC,3.000%,COMMON 506,624 538,211REGULAR BONDS 16,680 CANFOR CORPORATION,0.000%,COMMON 332,069 443,188

55,000 ALIMENTATION COUCHE-,3.899%,2022-11-01 55,247 51,424 5,020 CCL INDUSTRIES INC,0.860%,CLASS B NON VTG 343,641 397,23360,000 BMW CANADA INC,2.390%,2017-11-27 59,997 59,733 18,900 FIRST QUANTUM MNRL,0.173%,COMMON 321,801 361,36850,000 BRASCAN CORP,5.950%,2035-06-14 48,040 50,292 32,900 GOLDCORP INC,0.600%,COMMON 862,046 756,371

105,000 BROOKFIELD ASSET MMT,5.040%,2024-03-08 104,958 105,554 52,510 INTL FOREST PRODUCTS,0.000%,CLASS A SUB VT 510,129 702,05985,000 CAMECO CORP,3.750%,2022-11-14 84,993 79,665 2,850 METHANEX CORP,0.800%,COMMON 81,330 178,52440,000 LOBLAW COS LTD,3.748%,2019-03-12 40,000 40,802 126,300 NEW GOLD INC,0.000%,COMMON 813,586 698,438

105,000 LOBLAW COS LTD,6.150%,2035-01-29 110,818 112,210 4,600 SILVER WHEATON,0.360%,COMMON 117,120 98,578120,000 RELIANCE LP,4.574%,2017-03-15 120,000 125,210 6,390 STELLA JONES INC,0.200%,COMMON 144,948 174,128

75,000 SOBEYS INC,3.520%,2018-08-08 74,969 75,640 10,170 WEST FRASER TIMBER,0.560%,COMMON 836,955 1,050,662695,000 699,022 700,530 27,000 YAMANA GOLD INC,0.260%,COMMON 284,398 246,780

308,860 5,154,647 5,645,540INFRASTRUCTURE 1.68%REGULAR BONDS INDUSTRIALS 3.04%

65,000 407 EAST DEV GROUP,2.813%,2016-12-18 65,000 66,070 24,860 CDN NATL RAILWAY,0.860%,COMMON 817,963 1,505,024165,000 407 INTERNATIONAL,5.750%,2036-02-14 164,789 184,025 2,853 CDN PACIFIC RAILWAY,1.400%,COMMON 136,185 458,049

75,000 407 INTERNATIONAL,4.680%,2053-10-07 74,987 75,045 3,800 GENIVAR,1.500%,COMMON 119,801 119,852105,000 ALTALINK LP,3.668%,2023-11-06 105,000 102,389 10,760 SNC-LAVALIN GROUP,0.920%,COMMON 438,858 513,467

45,000 ALTALINK LP,4.922%,2043-09-17 45,000 46,981 23,340 TOROMONT INDS LTD,0.520%,COMMON 462,217 621,544280,000 GREATER TOR AIRPORT,5.960%,2019-11-20 279,935 324,520 65,613 1,975,024 3,217,936

85,000 HEALTH MTL COLL LP,6.721%,2049-09-30 85,000 101,90160,000 HOSP. INF. PART(NOH),5.439%,2045-01-31 59,999 64,003 CONSUMER DISCRETIONARY 3.58%

170,000 HYDRO ONE INC,4.590%,2043-10-09 169,973 169,864 5,030 CDN TIRE CORP,1.750%,CLASS A NON VTG 300,594 500,28455,000 LOWER MATTAGAMI ENER,4.944%,2043-09-21 55,000 57,324 10,270 DOLLARAMA,0.560%,COMMON 318,996 903,24735,000 LOWER MATTAGAMI ENER,4.176%,2046-02-23 35,000 31,996 9,360 DOREL INDUSTRIES INC,1.200%,CLASS B SUB VTG 360,023 377,86375,000 PLENARY HEALT HUMBER,4.895%,2039-05-31 75,000 75,683 14,160 GILDAN ACTIVEWEAR,0.432%,COMMON 579,985 801,456

300,000 SNC-LAVALIN MCGILL,6.632%,2044-06-30 300,000 349,293 20,740 SHAW COMMUNICATIONS,1.020%,CLASS B NON V 443,913 535,92250,000 TORONTO HYDRO,4.490%,2019-11-12 56,920 53,987 16,760 THOMSON REUTERS CORP,1.300%,COMMON 615,919 673,082

1,565,000 1,571,603 1,703,081 76,320 2,619,430 3,791,854

MAPLES CONSUMER STAPLES 0.21%75,000 NATL GRID ELECT TRAN,2.730%,2017-09-20 75,000 75,192 3,120 EMPIRE LTD,1.040%,CLASS A NON VTG 172,686 225,826

REAL ESTATE 0.83% HEALTH CARE 1.10%REGULAR BONDS 9,360 VALEANT PHARMACEUTIC,0.380%,COMMON 694,203 1,166,443

85,000 BANKERS HALL LP,4.377%,2023-11-20 85,000 84,176158,404 BROOKFIELD OFFICE PR,3.244%,2020-01-09 158,404 155,847 FINANCIALS 16.84%

70,000 CHOICE PRO REIT,3.554%,2018-07-05 70,000 70,812 33,320 BANK OF NOVA SCOTIA,2.480%,COMMON 1,952,203 2,212,448105,000 FIRST CAP REALTY,3.900%,2023-10-30 106,254 97,475 45,590 BROOKFIELD ASSET MGT,0.800%,CLASS A LTD VT 1,283,676 1,873,749155,000 OMERS REALTY CORP,3.358%,2023-06-05 155,000 147,510 23,150 CDN IMP BANK COMMERC,3.840%,COMMON 1,701,522 2,099,705242,353 SCOTIA PLAZA,3.210%,2019-06-15 242,353 239,237 8,790 CDN WESTERN BANK,0.760%,COMMON 242,760 339,646

80,000 SEC LP AND ARCI LTD,5.188%,2033-08-29 80,000 80,176 31,060 ELEMENT FINANCIAL,0.000%,COMMON 366,871 434,219895,757 897,011 875,233 9,180 INTACT FINANCIAL,1.760%,COMMON 541,615 636,725

83,530 MANULIFE FINCL CORP,0.520%,COMMON 1,546,345 1,749,954SECURITIZATION 0.95% 10,600 POWER FINANCIAL CORP,1.400%,COMMON 388,687 381,388REGULAR BONDS 38,490 ROYAL BANK CDA,2.680%,COMMON 1,914,830 2,747,416

375,000 CCIC 2006 WEM-A2,4.934%,2016-09-01 374,986 401,396 15,910 SUN LIFE FNCL INC,1.440%,COMMON 597,499 596,784115,000 IMSCI 2012-2 A2,3.254%,2022-06-12 116,931 109,322 47,730 TORONTO DOMINION BK,3.440%,COMMON 2,808,137 4,777,295165,355 MLFA 2007-CAN23-A2,5.255%,2017-05-12 163,579 176,077 347,350 13,344,145 17,849,329300,000 SCHOONER TR 2007-8 B,5.198%,2017-06-01 293,121 320,850955,355 948,617 1,007,645 INFORMATION TECHNOLOGY 1.92%

30,480 CGI GROUP INC,0.000%,CLASS A SUB VTG 691,673 1,082,65035,829,131 TOTAL BONDS AND DEBENTURES 37,882,329 37,996,127 48,420 DESCARTES SYSTEMS,0.000%,COMMON 442,080 687,080

2,740 OPEN TEXT CORP,1.200%,COMMON 239,205 267,150STOCKS 81,640 1,372,958 2,036,880CANADIAN COMMON STOCKSENERGY 12.21% TELECOMMUNICATION SERVICES 1.76%

15,910 BONAVISTA ENERGY,0.840%,COMMON 418,944 220,990 4,630 MANITOBA TELECOM,1.700%,COMMON 152,409 137,41814,330 CAMECO CORP,0.400%,COMMON 289,560 315,833 16,040 ROGERS COMMUNICATION,1.740%,CLASS B NON 474,224 771,04353,690 CDN NATURAL RES,0.800%,COMMON 1,815,682 1,928,008 26,280 TELUS CORP,1.440%,COMMON 727,119 960,79722,550 CENOVUS ENERGY,0.968%,COMMON 592,515 685,520 46,950 1,353,752 1,869,25825,690 CRESCENT POINT ENRGY,2.760%,COMMON 936,836 1,058,94216,360 ENBRIDGE INC,1.400%,COMMON 295,993 758,613 1,363,699 TOTAL CANADIAN COMMON STOCKS 38,423,628 48,742,52921,500 ENCANA CORPORATION,0.280%,COMMON 432,120 411,72534,230 ENERFLEX LTD,0.300%,COMMON 406,696 513,108

6





FOREIGN STOCKS (INCLUDING U.S.) U.S. - FINANCIALS 2.39%U.S - ENERGY 0.96% 2,145 AFLAC INC,1.480%,COMMON 133,764 152,219

1,209 APACHE CORP,0.800%,COMMON 121,298 110,382 3,302 AMERICAN EXPRESS CO,0.920%,COMMON 153,760 318,2802,292 CHEVRON CORP,4.000%,COMMON 233,938 304,187 2,107 BERKSHIRE HATHAWAY,0.000%,CLASS B 164,046 265,3293,088 EXXON MOBIL CORP,2.520%,COMMON 248,851 332,037 2,777 FRANKLIN RES INC,0.480%,COMMON 98,671 170,3061,031 NATIONAL OILWELL VAR,1.040%,COMMON 73,829 87,109 807 GOLDMAN SACHS GROUP,2.200%,COMMON 120,452 151,9891,916 SCHLUMBERGER LTD,1.250%,COMMON 132,790 183,441 5,620 JPMORGAN CHASE & CO,1.520%,COMMON 270,331 349,1399,536 810,706 1,017,156 1,885 PNC FINL SVCS GRP,1.760%,COMMON 116,208 155,358

1,319 PRICE T ROWE GRP,1.520%,COMMON 72,769 117,384U.S - MATERIALS 0.36% 3,990 STATE STREET CORP,1.040%,COMMON 206,100 311,170

1,215 DU PONT E I DE NEMOU,1.800%,COMMON 58,545 83,872 3,312 US BANCORP DEL,0.920%,COMMON 107,583 142,1321,773 MONSANTO CO,1.720%,COMMON 144,136 219,558 1,417 WADDELL & REED FINL,1.120%,CLASS A 39,468 98,057

548 PRAXAIR INC,2.400%,COMMON 71,408 75,704 6,326 WELLS FARGO & CO,1.200%,COMMON 213,812 305,0833,536 274,089 379,134 35,007 1,696,964 2,536,446

U.S. - INDUSTRIALS 1.74% U.S - INFORMATION TECHNOLOGY 3.27%1,100 3M COMPANY,3.420%,COMMON 88,663 163,894 2,367 ADOBE SYSTEMS INC,0.025%,COMMON 84,194 150,5694,566 CSX CORP,0.600%,COMMON 89,378 139,526 2,182 AKAMAI TECH INC,0.000%,COMMON 63,180 109,3812,610 DANAHER CORP,0.100%,COMMON 100,567 214,058 553 ALLIANCE DATA SYSTEM,0.000%,COMMON 66,530 154,494

810 DEERE & CO,2.040%,COMMON 60,598 78,601 2,019 AMPHENOL CORPORATION,0.800%,CLASS A 71,384 191,2861,124 FEDEX CORP,0.600%,COMMON 92,736 171,709 1,089 APPLE INC,12.200%,COMMON 231,079 648,9045,791 GENERAL ELECTRIC CO,0.880%,COMMON 170,399 172,467 953 AUTOMATIC DATA PROC,1.740%,COMMON 41,602 81,8053,235 HONEYWELL INTL INC,1.800%,COMMON 147,094 314,056 1,536 AVAGO TECHNOLOGIES,1.000%,COMMON 51,802 86,3331,685 SENSATA TECHNOLOGIES,0.000%,COMMON 58,325 69,375 4,617 CISCO SYSTEMS INC,0.680%,COMMON 114,291 110,0811,879 TYCO INTL LTD,0.640%,COMMON 37,550 81,914 2,022 COGNIZANT TECH SOLNS,0.000%,CLASS A 85,579 216,9641,041 UNION PAC CORP,3.160%,COMMON 102,052 185,785 6,496 EMC CORP MASS,0.400%,COMMON 128,358 173,5852,073 UNITED TECHNOLOGIES,2.195%,COMMON 169,727 250,608 7,532 INTEL CORP,0.900%,COMMON 165,564 207,671

25,914 1,117,089 1,841,993 2,111 INTUIT,0.760%,COMMON 78,419 171,1598,140 MICROSOFT CORP,1.120%,COMMON 276,093 323,636

U.S. - CONSUMER DISCRETIONARY 2.29% 6,828 ORACLE CORP,0.480%,COMMON 135,300 277,6392,652 BED BATH & BEYOND,0.000%,COMMON 173,879 226,237 3,486 QUALCOMM INC,1.400%,COMMON 166,084 274,9765,725 CBS CORPORATION,0.480%,CLASS B 124,077 387,536 1,226 VISA INC,1.600%,CLASS A 94,984 290,0294,878 NIKE INC,0.960%,CLASS B 130,011 407,685 53,157 1,854,443 3,468,512

258 PRICELINE COM INC,0.000%,COMMON 80,913 318,5582,113 TARGET CORPORATION,1.720%,COMMON 115,228 142,045 U.S. - OTHER 0.22%6,933 TJX COMPANIES INC,0.580%,COMMON 125,332 469,455 1,181 SPDR S&P 500 ETF TR,3.351%,UNITS SER 1 S&P 162,182 231,5761,522 TUPPERWARE BRANDS,2.480%,COMMON 104,339 152,8674,010 WALT DISNEY CO,0.860%,COMMON 178,419 325,469 206,647 TOTAL FOREIGN STOCKS (INCLUDING U.S) 8,917,001 15,892,016

28,091 1,032,198 2,429,8521,570,346 TOTAL STOCKS 47,340,629 64,634,545

U.S. - CONSUMER STAPLES 1.36%3,309 CHURCH & DWIGHT INC,1.120%,COMMON 88,243 233,028 40,790,119 TOTAL INVESTMENTS 88,598,734 106,006,4486,965 COCA-COLA CO,1.120%,COMMON 184,006 305,559 ACCRUED INCOME 334,660 334,6602,645 COLGATE PALMOLIVE CO,1.360%,COMMON 112,278 183,232 PAYABLES - MANAGEMENT AND AUDIT FEES (172,008) (172,008)2,370 COSTCO WHSL CORP,1.240%,COMMON 160,248 299,657 NET ASSETS 88,761,386 106,169,1002,201 CVS CAREMARK CORP,1.100%,COMMON 104,063 167,3471,787 HORMEL FOODS CORP,0.800%,COMMON 53,721 85,745 1.00 US = 1.062500 CA 31 DEC 13 1,925 PEPSICO INC,2.270%,COMMON 128,446 169,618

21,202 831,005 1,444,186

U.S. - HEALTH CARE 2.40%1,565 ALLERGAN INC,0.200%,COMMON 121,638 184,7053,575 AMERISOURCE-BERGEN,0.940%,COMMON 106,299 267,1066,057 EXPRESS SCRIPTS HLDG,0.000%,COMMON 184,841 451,9708,504 GILEAD SCIENCES INC,0.000%,COMMON 184,049 678,8373,052 JOHNSON & JOHNSON,2.640%,COMMON 215,951 296,9712,031 STRYKER CORP,1.220%,COMMON 111,183 162,1044,239 THERMO FISHER SCI,0.600%,COMMON 214,364 501,468

29,023 1,138,325 2,543,161

7


Co-operators Balanced FundFinancial Highlights (unaudited)For the years ended December 31

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's performance for thepast 5 years.

The Fund's Net Asset Value per Unit

2013 2012 2011 2010 2009Net Asset Value per Unit (note 8)

Segment 1 Group Retirement Products 251.47 227.13 218.01 225.36 207.03 Segment 3 Group Retirement - Investment Mgmt Only - 209.42 195.93 198.84 179.17 Segment 4 Versatile Asset® Participants 401.90 362.77 345.25 356.34 326.18 Segment 5 Versatile Asset® II Participants 184.55 167.05 159.44 165.02 151.46 Segment 6 Versatile Asset® III Participants 169.43 153.72 147.05 152.54 140.30 Segment 7 Versatile Asset® IV Participants 182.69 164.90 156.92 161.95 148.23 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 161.43 146.41 140.01 145.21 133.55 Segment 9 Versatile Portfolios™ Participants (No-Load) 159.22 144.61 138.49 143.83 132.48 Segment 10 Co-operators Group Retirement Income Product 112.68 101.27 - - - Segment 11 Versatile Portfolios™ TFSA 138.59 125.86 120.52 125.16 115.29 Segment 12 Versatile Portfolios™ Education Savings Plan 130.82 118.21 112.63 116.38 106.63

Ratios and Supplemental Data

2013 2012 2011 2010 2009Net assets (note 5)

Segment 1 Group Retirement Products 65,672,069 57,381,902 54,184,459 54,741,564 48,949,945 Segment 3 Group Retirement - Investment Mgmt Only - 31,515,159 27,263,648 24,924,830 18,595,816 Segment 4 Versatile Asset® Participants 22,270,857 21,993,929 25,527,141 27,737,609 27,921,780 Segment 5 Versatile Asset® II Participants 7,433,330 7,134,257 8,292,739 9,190,108 9,264,650 Segment 6 Versatile Asset® III Participants 373,572 431,401 451,038 479,228 482,202 Segment 7 Versatile Asset® IV Participants 81,399 78,089 82,402 85,040 84,680 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 7,484,432 6,676,780 5,018,356 3,881,712 2,827,736 Segment 9 Versatile Portfolios™ Participants (No-Load) 2,115,869 1,755,752 1,837,096 1,423,767 882,702 Segment 10 Co-operators Group Retirement Income Product 16,342 14,686 - - - Segment 11 Versatile Portfolios™ TFSA 479,731 335,279 276,981 154,560 60,806 Segment 12 Versatile Portfolios™ Education Savings Plan 340,936 248,679 125,187 75,789 10,258

Number of units outstandingSegment 1 Group Retirement Products 261,153 252,638 248,545 242,910 236,436 Segment 3 Group Retirement - Investment Mgmt Only - 150,487 139,149 125,351 103,792 Segment 4 Versatile Asset® Participants 55,415 60,628 73,938 77,841 85,601 Segment 5 Versatile Asset® II Participants 40,279 42,706 52,013 55,690 61,168 Segment 6 Versatile Asset® III Participants 2,205 2,806 3,067 3,142 3,437 Segment 7 Versatile Asset® IV Participants 446 474 525 525 571 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 46,364 45,602 35,842 26,731 21,174 Segment 9 Versatile Portfolios™ Participants (No-Load) 13,289 12,141 13,265 9,899 6,663 Segment 10 Co-operators Group Retirement Income Product 145 145 - - - Segment 11 Versatile Portfolios™ TFSA 3,462 2,664 2,298 1,235 527 Segment 12 Versatile Portfolios™ Education Savings Plan 2,606 2,104 1,111 651 96

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.24% 2.24% 2.25% 2.20% 2.14%Segment 5 Versatile Asset® II Participants 2.52% 2.53% 2.54% 2.47% 2.40%Segment 6 Versatile Asset® III Participants 2.76% 2.77% 2.77% 2.69% 2.61%Segment 7 Versatile Asset® IV Participants 2.23% 2.23% 2.24% 2.19% 2.14%Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2.73% 2.73% 2.74% 2.68% 2.61%Segment 9 Versatile Portfolios™ Participants (No-Load) 2.87% 2.88% 2.89% 2.84% 2.77%Segment 11 Versatile Portfolios™ TFSA 2.86% 2.87% 2.89% 2.84% 2.77%Segment 12 Versatile Portfolios™ Education Savings Plan 2.35% 2.36% 2.36% 2.30% 2.25%

Portfolio turnover rate (note 10) 68.40% 80.00% 90.60% 104.00% 149.20%

8


Co-operators Canadian Equity FundFund managed by Addenda Capital Inc.


2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 77 15 Net assets at beginning of year 107,788 119,607 Short-term notes 2,231 2,256 Investment Income receivable 248 277 Increase (decrease) in net assets from operations 15,151 5,613 Stocks 115,893 105,462

118,449 108,010 Fund of funds rebalancing (note 2) (1,559) (14,069)

Liabilities Transactions with unitholdersPayables for management and audit fees (note 7) 255 222 Unitholders' contributions 13,143 13,948

Unitholders' withdrawals (12,670) (14,492) Net assets 118,194 107,788 Transfers (to) from other funds (3,659) (2,819)

Net increase (decrease) from unitholders' transactions (3,186) (3,363)

Statement of Operations Net assets at end of year 118,194 107,788 For the years ended December 31

2013 2012($000's) ($000's)

Investment IncomeDividend income 2,955 3,140 Interest income - short term notes 23 23 Other income 7 14

2,985 3,177

ExpensesManagement fees (notes 7 and 9) 2,716 3,005 Audit, legal and other fees (note 9) 22 32 Transaction costs 176 145

2,914 3,182

Net investment income (loss) 71 (5)

Gains (losses) on investmentsRealized gains (losses) 653 1,921 Unrealized gains (losses) 14,427 3,697

15,080 5,618


9


Co-operators Canadian Equity Fund



CASH AND CASH EQUIVALENTS CONSUMER DISCRETIONARY 7.65%76,854 CANADIAN DOLLAR 76,854 76,854 11,900 CDN TIRE CORP 719,735 1,183,57476,854 76,854 76,854 24,400 DOLLARAMA 789,399 2,145,980

22,700 DOREL INDUSTRIES INC 872,182 916,399SHORT TERM NOTES 33,600 GILDAN ACTIVEWEAR 1,381,759 1,901,760DISCOUNT NOTES 1.89% 49,500 SHAW COMMUNICATIONS 1,067,240 1,279,080

2,240,000 CANADA T BILLS T/B 2,230,414 2,230,414 40,200 THOMSON REUTERS CORP 1,479,297 1,614,4322,240,000 2,230,414 2,230,414 182,300 6,309,612 9,041,225

STOCKS CONSUMER STAPLES 0.45%CANADIAN COMMON STOCKS 7,300 EMPIRE LTD 410,212 528,374ENERGY 26.10%

38,100 BONAVISTA ENERGY 1,010,545 529,209 HEALTH CARE 2.35%34,100 CAMECO CORP 689,365 751,564 22,300 VALEANT PHARMACEUTIC 1,671,958 2,779,026

128,200 CDN NATURAL RES 4,267,139 4,603,66253,808 CENOVUS ENERGY 1,433,596 1,635,763 FINANCIALS 36.01%61,400 CRESCENT POINT ENRGY 2,200,473 2,530,908 79,800 BANK OF NOVA SCOTIA 4,680,627 5,298,72038,900 ENBRIDGE INC 722,419 1,803,793 108,900 BROOKFIELD ASSET MGT 3,116,171 4,475,79051,108 ENCANA CORPORATION 1,060,929 978,718 55,500 CDN IMP BANK COMMERC 4,122,035 5,033,85081,800 ENERFLEX LTD 979,675 1,226,182 20,900 CDN WESTERN BANK 576,721 807,57658,400 ENSIGN ENERGY SERVCS 904,822 974,696 74,300 ELEMENT FINANCIAL 879,422 1,038,71416,900 KEYERA CORP 791,568 1,077,713 21,800 INTACT FINANCIAL 1,289,623 1,512,04852,400 LEGACY OIL+GAS 579,921 321,212 199,800 MANULIFE FINCL CORP 4,019,540 4,185,81035,400 PEMBINA PIPELINE 1,154,415 1,324,314 25,400 POWER FINANCIAL CORP 931,385 913,89213,500 SHAWCOR LTD 393,268 573,480 90,200 ROYAL BANK CDA 4,479,269 6,438,476

185,500 SUNCOR ENERGY INC 6,786,660 6,902,456 38,200 SUN LIFE FNCL INC 1,505,478 1,432,88252,774 TALISMAN ENERGY INC 835,525 651,231 114,200 TORONTO DOMINION BK 6,643,224 11,430,27827,300 TOURMALINE OIL CORP 956,961 1,218,945 829,000 32,243,495 42,568,03670,000 TRANSCANADA CORP 2,940,654 3,393,60012,600 TRILOGY ENERGY CORP 365,403 347,760 INFORMATION TECHNOLOGY 4.10%

1,012,190 28,073,338 30,845,206 72,400 CGI GROUP INC 1,655,149 2,571,648115,800 DESCARTES SYSTEMS 1,070,981 1,643,202

MATERIALS 11.13% 6,520 OPEN TEXT CORP 569,228 635,70013,040 AGRIUM INC 1,192,822 1,266,836 194,720 3,295,358 4,850,55040,000 CANFOR CORPORATION 797,520 1,062,80011,700 CCL INDUSTRIES INC 802,341 925,821 TELECOMMUNICATION SERVICES 3.78%44,900 FIRST QUANTUM MNRL 764,516 858,488 10,900 MANITOBA TELECOM 358,595 323,51278,700 GOLDCORP INC 2,062,722 1,809,313 38,500 ROGERS COMMUNICATION 1,157,077 1,850,695

125,000 INTL FOREST PRODUCTS 1,224,521 1,671,250 62,600 TELUS CORP 1,742,844 2,288,6562,400 METHANEX CORP 70,641 150,336 112,000 3,258,516 4,462,863

301,300 NEW GOLD INC 1,941,309 1,666,18911,100 SILVER WHEATON 282,646 237,873 3,248,007 TOTAL CANADIAN COMMON STOCKS 92,173,297 115,893,02515,140 STELLA JONES INC 342,377 412,56524,200 WEST FRASER TIMBER 1,998,091 2,500,102 5,564,861 TOTAL INVESTMENTS 94,480,565 118,200,29364,400 YAMANA GOLD INC 678,367 588,616 ACCRUED INCOME 248,018 248,018

731,880 12,157,873 13,150,189 PAYABLES - MANAGEMENT AND AUDIT FEES (254,598) (254,598)NET ASSETS 94,473,985 118,193,713

INDUSTRIALS 6.49%59,100 CDN NATL RAILWAY 1,967,070 3,577,914 1.00 US = 1.062500 CA 31 DEC 13

6,817 CDN PACIFIC RAILWAY 350,913 1,094,4698,900 GENIVAR 280,586 280,706

25,800 SNC-LAVALIN GROUP 1,047,767 1,231,17655,700 TOROMONT INDS LTD 1,106,599 1,483,291

156,317 4,752,935 7,667,556

10


Co-operators Canadian Equity FundFinancial Highlights (unaudited)For the years ended December 31


The Fund's Net Asset Value per Unit 2013 2012 2011 2010 2009

Net Asset Value per Unit (note 8)Segment 1 Group Retirement Products 269.90 245.89 246.47 284.17 264.13 Segment 2 Seed Money - - - 593.54 517.89 Segment 3 Group Retirement - Investment Mgmt Only 122.43 105.87 99.65 111.40 97.76 Segment 4 Versatile Asset® Participants 407.48 367.21 332.53 386.30 346.81 Segment 5 Versatile Asset® II Participants 238.19 210.27 198.52 226.11 202.03 Segment 6 Versatile Asset® III Participants 185.79 164.20 156.21 178.22 159.23 Segment 7 Versatile Asset® IV Participants 207.31 181.09 172.24 194.47 172.29 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 176.19 155.22 148.85 169.60 151.57 Segment 9 Versatile Portfolios™ Participants (No-Load) 162.45 143.90 136.83 156.42 140.05 Segment 10 Co-operators Group Retirement Income Product 105.61 91.36 86.18 96.52 84.82 Segment 11 Versatile Portfolios™ TFSA 150.50 132.88 127.44 145.35 130.01 Segment 12 Versatile Portfolios™ Education Savings Plan 125.98 110.65 105.70 120.01 106.91

Ratios and Supplemental Data 2013 2012 2011 2010 2009

Net assets (note 5)Segment 1 Group Retirement Products 24,682,732 21,723,633 20,318,793 22,629,649 20,154,757 Segment 2 Seed Money - - - 957,198 835,192 Segment 3 Group Retirement - Investment Mgmt Only 2,368,488 2,121,640 1,983,808 2,082,561 1,885,777 Segment 4 Versatile Asset® Participants 21,102,051 21,630,264 25,219,912 30,654,809 28,617,252 Segment 5 Versatile Asset® II Participants 15,376,576 14,833,230 16,312,141 19,557,474 18,568,444 Segment 6 Versatile Asset® III Participants 814,561 837,925 894,510 1,054,908 1,003,549 Segment 7 Versatile Asset® IV Participants 118,352 102,238 131,067 204,636 186,708 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 36,622,633 32,094,288 37,943,121 35,828,950 29,314,688 Segment 9 Versatile Portfolios™ Participants (No-Load) 9,860,204 8,997,665 11,785,289 11,910,150 9,689,723 Segment 10 Co-operators Group Retirement Income Product 3,904,155 3,132,433 2,793,481 2,140,249 1,658,076 Segment 11 Versatile Portfolios™ TFSA 2,417,312 1,789,101 1,835,001 1,200,449 431,253 Segment 12 Versatile Portfolios™ Education Savings Plan 1,038,970 740,993 586,478 402,459 89,161

Number of units outstandingSegment 1 Group Retirement Products 91,451 88,346 82,440 79,635 76,307 Segment 2 Seed Money - - - 1,613 1,613 Segment 3 Group Retirement - Investment Mgmt Only 19,345 20,041 19,907 18,694 19,289 Segment 4 Versatile Asset® Participants 51,787 58,905 75,842 79,355 82,515 Segment 5 Versatile Asset® II Participants 64,555 70,543 82,170 86,495 91,911 Segment 6 Versatile Asset® III Participants 4,384 5,103 5,726 5,919 6,303 Segment 7 Versatile Asset® IV Participants 571 565 761 1,052 1,084 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 207,862 206,767 254,909 211,257 193,401 Segment 9 Versatile Portfolios™ Participants (No-Load) 60,698 62,528 86,130 76,141 69,189 Segment 10 Co-operators Group Retirement Income Product 36,969 34,286 32,416 22,175 19,548 Segment 11 Versatile Portfolios™ TFSA 16,062 13,464 14,399 8,259 3,317 Segment 12 Versatile Portfolios™ Education Savings Plan 8,247 6,697 5,548 3,354 834



11


Co-operators Canadian Fixed Income FundFund managed by Addenda Capital Inc.


2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 80 12 Net assets at beginning of year 116,571 88,526 Short-term notes 3,301 1,509 Receivables from investments sold 78 414 Increase (decrease) in net assets from operations (4,390) 1,890 Investment Income receivable 662 590 Bonds and debentures 114,605 115,078 Fund of funds rebalancing (note 2) 8,742 7,113

118,726 117,603 Transactions with unitholders

Liabilities Unitholders' contributions 22,853 22,785 Payments for investments purchased - 780 Unitholders' withdrawals (15,572) (12,474) Payables for management and audit fees (note 7) 266 252 Transfers (to) from other funds (9,744) 8,731

266 1,032 Net increase (decrease) from unitholders' transactions (2,463) 19,042 Net assets 118,460 116,571

Net assets at end of year 118,460 116,571

Statement of OperationsFor the years ended December 31

2013 2012($000's) ($000's)

Investment IncomeInterest income - bonds and debentures 4,269 3,676 Interest income - short term notes 24 22 Foreign exchange gain (loss) 47 - Other income 4 3

4,344 3,701

ExpensesManagement fees (notes 7 and 9) 3,031 2,656 Audit, legal and other fees (note 9) 19 28

3,050 2,684

Net investment income (loss) 1,294 1,017

Gains (losses) on investmentsRealized gains (losses) (1,371) 1,560 Unrealized gains (losses) (4,313) (687)

(5,684) 873

Increase (decrease) in net assets from operations (4,390) 1,890

12


Co-operators Canadian Fixed Income Fund



CASH AND CASH EQUIVALENTS CORPORATE80,206 CANADIAN DOLLAR 80,206 80,206 COMMUNICATION 3.94%80,206 80,206 80,206 REGULAR BONDS

390,000 BELL ALIANT,3.540%,2020-06-12 390,000 383,780SHORT TERM NOTES 280,000 BELL CANADA,3.250%,2020-06-17 279,790 274,042DISCOUNT NOTES 2.80% 1,220,000 BELL CANADA,4.700%,2023-09-11 1,255,147 1,244,387

3,315,000 CANADA T BILLS T/B,2014-06-05 3,300,546 3,300,546 625,000 ROGERS COMM INC,5.340%,2021-03-22 679,925 679,8993,315,000 3,300,546 3,300,546 255,000 ROGERS COMM INC,6.680%,2039-11-04 264,611 296,769

70,000 SHAW COMMUNICATIONS,5.650%,2019-10-01 77,881 77,013BONDS AND DEBENTURES 445,000 SHAW COMMUNICATIONS,5.500%,2020-12-07 464,057 485,299CANADA 170,000 TELUS CORP,3.600%,2021-01-26 169,516 169,067FEDERAL GOVERNMENT 26.62% 405,000 TELUS CORP,3.350%,2024-04-01 370,428 370,729REGULAR BONDS 195,000 TELUS CORP,4.400%,2043-04-01 194,548 171,930

2,175,000 CANADA GOVT,2.500%,2015-06-01 2,229,088 2,219,392 270,000 TELUS CORP,5.150%,2043-11-26 268,650 268,137250,000 CANADA GOVT,3.000%,2015-12-01 259,298 258,843 4,325,000 4,414,553 4,421,052525,000 CANADA GOVT,1.250%,2018-03-01 508,862 513,298855,000 CANADA GOVT,4.250%,2018-06-01 948,375 942,364 MAPLES

1,075,000 CANADA GOVT,1.250%,2018-09-01 1,040,935 1,041,503 225,000 AT&T INC,3.825%,2020-11-25 225,000 225,090455,000 CANADA GOVT,3.750%,2019-06-01 511,510 493,925885,000 CANADA GOVT,3.500%,2020-06-01 977,952 952,048 ENERGY 3.44%

1,490,000 CANADA GOVT,2.750%,2022-06-01 1,542,188 1,500,192 REGULAR BONDS260,000 CANADA GOVT,2.500%,2024-06-01 252,850 251,157 250,000 ALLIANCE PIPELINE,4.928%,2019-12-16 250,000 265,490400,000 CANADA GOVT,5.750%,2033-06-01 566,251 548,956 155,047 ALLIANCE PIPELINE,7.217%,2025-12-31 159,293 183,175

1,050,000 CANADA GOVT,5.000%,2037-06-01 1,524,370 1,357,629 100,000 ALTAGAS LTD,3.570%,2023-06-12 99,925 94,2591,620,000 CANADA GOVT,4.000%,2041-06-01 1,948,201 1,842,782 305,000 CAPITAL POWER LP,4.600%,2015-12-01 304,902 317,413

800,000 CANADA GOVT,3.500%,2045-12-01 842,268 840,064 310,000 CU INC,4.722%,2043-09-09 310,000 315,7579,200,000 CANADA HOUSING TRST,3.150%,2014-06-15 9,305,884 9,288,319 240,000 CU INC,3.857%,2052-11-14 240,000 205,606

225,000 CANADA HOUSING TRST,1.850%,2016-12-15 225,941 227,700 130,000 CU INC,4.558%,2053-11-07 130,000 127,3491,625,000 CANADA HOUSING TRST,1.700%,2017-12-15 1,589,071 1,613,706 200,000 ENBRIDGE INC,3.940%,2023-06-30 200,000 197,1461,175,000 CANADA HOUSING TRST,4.100%,2018-12-15 1,293,148 1,278,212 425,000 ENBRIDGE INC,5.750%,2039-09-02 447,483 477,6572,200,000 CANADA HOUSING TRST,3.350%,2020-12-15 2,275,041 2,295,018 425,000 ENBRIDGE INC,4.240%,2042-08-27 424,711 383,4351,055,000 CANADA POST CORP,4.360%,2040-07-16 1,255,848 1,153,231 170,000 ENBRIDGE PIPEL. INC.,8.200%,2024-02-15 240,859 227,429

285,000 MUSKRAT FALLS,3.630%,2029-06-01 289,842 287,699 150,000 INTER PIPELINE CORR.,5.033%,2015-02-02 150,126 155,090614,863 PEOPLES TR 96502893,4.000%,2016-01-01 582,231 642,944 275,000 INTER PIPELINE LTD,3.448%,2020-07-20 275,000 274,203

1,125,000 PSP CAPITAL INC,2.940%,2015-12-03 1,144,867 1,154,689 362,945 NORTH BATTLEFORD PWR,4.958%,2032-12-31 362,970 367,811360,000 PSP CAPITAL INC,2.260%,2017-02-16 359,899 364,568 90,000 SUNCOR ENERGY INC,5.390%,2037-03-26 89,738 94,883360,000 PSP CAPITAL INC,3.030%,2020-10-22 359,863 360,634 150,000 TRANSCANADA PIPELINE,8.050%,2039-02-17 247,650 219,533

30,064,863 31,833,783 31,428,873 155,000 TRANSCANADA PIPELINE,4.550%,2041-11-15 154,258 151,5253,892,991 4,086,915 4,057,761

PROVINCIAL AND GUARANTEED 30.81%REGULAR BONDS FINANCIAL PRODUCTS 18.17%

1,350,000 55 SCHOOL BOARD TR,5.900%,2033-06-02 1,612,719 1,573,020 REGULAR BONDS795,000 BC PROV,8.000%,2023-09-08 1,178,077 1,092,330 550,000 AMERICAN EXPRESS CDA,3.600%,2016-06-03 578,791 571,808800,000 BC PROV,6.350%,2031-06-18 1,134,793 1,044,464 680,000 BANK NOVA SCOTIA FF,2.898%,2022-08-03 682,151 687,717755,000 BC PROV,4.700%,2037-06-18 876,313 835,385 730,000 BANK NOVA SCOTIA FF,3.036%,2024-10-18 733,748 720,831690,000 CADILLAC FAIRVIEW FT,3.240%,2016-01-25 689,881 713,722 980,000 BANK OF MONTREAL,3.400%,2021-04-23 979,226 976,892685,000 CADILLAC FAIRVIEW FT,3.640%,2018-05-09 684,918 718,716 640,000 BANK OF MONTREAL FF,3.979%,2021-07-08 653,568 667,744710,000 CADILLAC FAIRVIEW FT,4.310%,2021-01-25 708,833 764,372 250,000 BANK OF NOVA SCOTIA,2.242%,2018-03-22 250,000 246,403

1,550,000 CDP FINANCIAL FRN,1.725%,2015-07-15 1,551,743 1,555,952 300,000 BMO CAP TRUST FF,10.221%,2107-12-31 402,060 392,1394,500,000 FINANCEMENT QUEBEC,1.668%,2018-06-01 4,518,909 4,541,219 150,000 CAISSE CENTRALE DES,2.795%,2018-11-19 150,000 149,2671,000,000 FINANCEMENT QUEBEC,2.450%,2019-12-01 997,510 984,600 465,000 CAP DESJ.INC FF,5.541%,2021-06-01 503,683 502,684

460,000 MANITOBA PROV,4.400%,2025-09-05 528,644 487,973 185,000 CAP DESJARDINS,5.187%,2020-05-05 191,035 203,452715,000 MANITOBA PROV,4.650%,2040-03-05 772,931 775,982 220,000 CIBC CAP TRUST FF,10.250%,2108-06-30 295,129 301,915700,000 NEW BRUNSWICK PROV,4.800%,2041-06-03 754,331 761,523 440,000 CIBC FF,3.150%,2020-11-02 453,508 449,156475,000 NEWFOUNDLAND PROV,4.500%,2037-04-17 546,016 499,168 255,000 DAIMLER CANADA FIN,2.330%,2015-09-14 255,583 257,012625,000 NOVA SCOTIA PROV,5.800%,2033-06-01 842,063 765,463 180,000 DAIMLER CANADA FIN,2.280%,2017-02-17 179,996 180,151275,000 ONT SCHL FIN,5.700%,2017-10-11 287,658 308,765 405,000 EMPIRE LIFE INS,2.870%,2023-05-31 405,000 399,573615,000 ONT STRAT INFRA FIN,4.600%,2015-06-01 622,410 642,048 305,000 FORD CREDIT CANADA,3.700%,2018-08-02 305,000 311,780

2,940,000 ONTARIO PROV,6.500%,2029-03-08 3,828,046 3,788,337 285,000 GE CAP CAN FUNDING,2.420%,2018-05-31 284,986 281,9652,550,000 ONTARIO PROV,4.650%,2041-06-02 2,866,793 2,750,022 150,000 GE CAP CAN FUNDING,3.550%,2019-06-11 149,660 154,3021,375,000 ONTARIO PROV FRN,1.428%,2018-12-03 1,374,032 1,374,546 100,000 GE CAP CAN FUNDING,5.680%,2019-09-10 116,877 113,652

625,000 OPB FINANCE TRUST,3.890%,2042-07-04 622,524 554,319 135,000 GENWORTH MI CDA,5.680%,2020-06-15 134,933 147,0234,505,000 QUEBEC PROV,3.000%,2023-09-01 4,497,376 4,270,514 350,000 HSBC BANK CANADA,2.572%,2015-11-23 350,000 354,967

445,000 QUEBEC PROV,8.500%,2026-04-01 647,204 641,961 250,000 IGM FINANCIAL,7.350%,2019-04-08 249,860 298,6431,830,000 QUEBEC PROV,6.250%,2032-06-01 2,532,015 2,307,465 350,000 JOHN DEERE CANADA,2.650%,2018-07-16 349,955 349,3281,145,000 QUEBEC PROV,5.000%,2038-12-01 1,391,552 1,269,897 785,000 MANULIFE FIN CORP FF,7.405%,2108-12-31 861,100 933,1371,350,000 QUEBEC PROV FRN,1.460%,2018-12-19 1,350,000 1,350,000 220,000 MANULIFE FINL CORP,5.161%,2015-06-26 236,210 230,855

33,465,000 37,417,291 36,371,763 150,000 MANULIFE FINL CORP,5.505%,2018-06-26 166,179 166,074400,000 NBC ASSET TRUST FF,7.235%,2049-06-30 463,500 467,260

MUNICIPAL 4.00% 175,000 RBC CAPITAL TRUST FF,6.821%,2049-06-30 175,000 202,787REGULAR BONDS 650,000 ROYAL BANK CDA,5.950%,2014-06-18 705,868 662,526

640,000 BC MUNI FINANCE,4.150%,2021-06-01 706,950 679,789 770,000 ROYAL BANK CDA,2.364%,2017-09-21 775,960 767,852590,000 CITY OF TORONTO,3.900%,2023-09-29 588,307 592,690 440,000 ROYAL BANK CDA,2.890%,2018-10-11 439,960 441,179135,000 MONTREAL PQ,5.000%,2018-12-01 150,431 148,815 495,000 ROYAL BANK CDA FF,3.180%,2020-11-02 498,092 505,544445,000 SOUTH COAST BC TRAN,4.450%,2044-06-09 443,968 442,610 700,000 ROYAL BANK CDA FF,2.990%,2024-12-06 700,000 688,680995,000 TORONTO ON,4.500%,2019-12-02 991,925 1,080,888 225,000 SUN LIFE CAP TRUST,5.863%,2108-12-31 225,000 251,955960,000 YORK ON,4.000%,2021-06-30 1,038,162 1,002,461 210,000 SUN LIFE FIN INC FF,4.800%,2035-11-23 209,498 219,624810,000 YORK ON,4.000%,2032-05-31 831,433 772,084 905,000 SUN LIFE FIN INC FF,4.950%,2036-06-01 941,477 959,210

4,575,000 4,751,176 4,719,337 500,000 TD BANK FF,5.763%,2106-12-18 562,260 554,670

13


Co-operators Canadian Fixed Income Fund



REGULAR BONDS (CONTINUED) MAPLES980,000 TD CAPITAL SECUR. FF,7.243%,2049-12-31 980,908 1,163,680 225,000 NATL GRID ELECT TRAN,2.730%,2017-09-20 225,000 225,576115,000 TD CAPITAL TRUST FF,10.000%,2108-06-30 159,376 157,667110,000 TMX GROUP,3.253%,2018-10-03 110,000 110,537 REAL ESTATE 2.15%375,000 TORONTO DOMINION BK,2.433%,2017-08-15 375,000 375,971 REGULAR BONDS390,000 VW CREDIT CDA,2.200%,2016-10-11 389,981 391,966 275,000 BANKERS HALL LP,4.377%,2023-11-20 275,000 272,335140,000 VW CREDIT CDA,2.450%,2017-11-14 139,751 139,555 376,209 BROOKFIELD OFFICE PR,3.244%,2020-01-09 376,209 370,137210,000 WELLS FARGO FIN CDA,2.944%,2019-07-25 210,000 208,650 375,000 CHOICE PRO REIT,3.554%,2018-07-05 375,000 379,350535,000 WELLS FARGO FIN CDA,3.460%,2023-01-24 535,000 516,088 320,000 FIRST CAP REALTY,3.900%,2023-10-30 323,821 297,066

17,835,000 18,514,869 18,833,871 485,000 OMERS REALTY CORP,3.358%,2023-06-05 485,000 461,565504,095 SCOTIA PLAZA,3.210%,2019-06-15 504,094 497,612

MAPLES 255,000 SEC LP AND ARCI LTD,5.188%,2033-08-29 255,000 255,561320,000 GOLDMAN SACHS GROUP,3.375%,2018-02-01 319,578 323,450 2,590,304 2,594,124 2,533,626700,000 GREAT WEST LIFECO FF,5.691%,2067-06-21 769,188 765,946430,000 JPMORGAN CHASE & CO,2.920%,2017-09-19 432,997 432,455 SECURITIZATION 1.82%245,000 MET LIFE GLOB FUND,2.624%,2015-04-10 247,045 247,671 REGULAR BONDS600,000 MET LIFE GLOB FUND,3.850%,2016-01-12 626,460 622,182 975,000 CCIC 2006 WEM-A2,4.934%,2016-09-01 984,982 1,043,629230,000 MET LIFE GLOB FUND,3.027%,2020-06-11 230,000 224,915 350,000 IMSCI 2012-2 A2,3.254%,2022-06-12 355,877 332,721

2,525,000 2,625,268 2,616,619 305,907 MLFA 2007-CAN23-A2,5.255%,2017-05-12 302,355 325,742200,000 SCHOONER TR 2006-5 B,4.800%,2016-02-01 199,996 207,942

INDUSTRIAL PRODUCTS 1.92% 225,000 SCHOONER TR 2006-6 C,5.046%,2016-09-01 224,987 233,021REGULAR BONDS 2,055,907 2,068,197 2,143,055

185,000 ALIMENTATION COUCHE-,3.899%,2022-11-01 185,830 172,973190,000 BMW CANADA INC,2.390%,2017-11-27 189,991 189,155 108,064,065 TOTAL BONDS AND DEBENTURES 115,547,354 114,605,319155,000 BRASCAN CORP,5.950%,2035-06-14 148,922 155,904335,000 BROOKFIELD ASSET MMT,5.040%,2024-03-08 334,866 336,769 111,459,271 TOTAL INVESTMENTS 118,928,106 117,986,071190,000 CAMECO CORP,3.750%,2022-11-14 189,985 178,076 ACCRUED INCOME 662,238 662,238125,000 LOBLAW COS LTD,3.748%,2019-03-12 125,000 127,505 RECEIVABLES - INVESTMENTS SOLD 78,347 78,347230,000 LOBLAW COS LTD,6.150%,2035-01-29 242,459 245,794 PAYABLES - MANAGEMENT AND AUDIT FEES (266,304) (266,304)400,000 RELIANCE LP,4.574%,2017-03-15 400,000 417,363 NET ASSETS 119,402,387 118,460,352300,000 SOBEYS INC,3.520%,2018-08-08 299,877 302,559

2,110,000 2,116,930 2,126,098 1.00 US = 1.062500 CA 31 DEC 13

MAPLES135,000 MOLSON COORS BREWING,3.950%,2017-10-06 134,575 139,926

INFRASTRUCTURE 4.23%REGULAR BONDS

175,000 407 EAST DEV GROUP,2.813%,2016-12-18 175,000 177,881300,000 407 INTERNATIONAL,5.750%,2036-02-14 314,239 334,590240,000 407 INTERNATIONAL,4.680%,2053-10-07 239,957 240,144335,000 ALTALINK LP,3.668%,2023-11-06 335,000 326,669155,000 ALTALINK LP,4.922%,2043-09-17 155,000 161,82595,000 GREATER TOR AIRPORT,5.260%,2018-04-17 109,977 105,290

750,000 GREATER TOR AIRPORT,5.960%,2019-11-20 749,828 869,250250,000 HEALTH MTL COLL LP,6.721%,2049-09-30 250,000 299,710150,000 HOSP. INF. PART(NOH),5.439%,2045-01-31 149,999 160,008535,000 HYDRO ONE INC,4.590%,2043-10-09 534,913 534,572185,000 LOWER MATTAGAMI ENER,4.944%,2043-09-21 185,000 192,81680,000 LOWER MATTAGAMI ENER,4.176%,2046-02-23 80,000 73,134

200,000 PLENARY HEALT HUMBER,4.895%,2039-05-31 200,000 201,820405,000 POWERSTREAM INC,3.958%,2042-07-30 405,000 358,312485,000 SNC-LAVALIN MCGILL,6.632%,2044-06-30 485,000 564,690150,000 TORONTO HYDRO,4.490%,2019-11-12 170,760 161,961

4,490,000 4,539,673 4,762,672

14


Co-operators Canadian Fixed Income FundFinancial Highlights (unaudited)For the years ended December 31


The Fund's Net Asset Value per Unit 2013 2012 2011 2010 2009

Net Asset Value per Unit (note 8)Segment 1 Group Retirement Products 172.33 194.21 197.12 181.92 180.89 Segment 2 Seed Money - - - 382.44 359.93 Segment 3 Group Retirement - Investment Mgmt Only 130.50 133.25 129.27 120.04 113.60 Segment 4 Versatile Asset® Participants 214.40 242.44 220.79 201.89 194.87 Segment 5 Versatile Asset® II Participants 153.47 162.39 158.24 148.17 143.06 Segment 6 Versatile Asset® III Participants 135.94 141.88 139.70 131.75 126.96 Segment 7 Versatile Asset® IV Participants 155.02 159.46 155.01 144.63 137.54 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 130.93 136.59 134.29 126.98 122.39 Segment 9 Versatile Portfolios™ Participants (No-Load) 132.94 138.34 137.22 130.19 126.10 Segment 10 Co-operators Group Retirement Income Product 129.18 132.71 128.61 119.62 113.39 Segment 11 Versatile Portfolios™ TFSA 113.37 118.48 116.50 110.33 106.49 Segment 12 Versatile Portfolios™ Education Savings Plan 113.72 118.12 115.77 109.08 104.84


Net assets (note 5)Segment 1 Group Retirement Products 12,565,252 11,274,232 9,671,387 8,710,136 7,456,099 Segment 2 Seed Money - - - 1,766,301 1,662,345 Segment 3 Group Retirement - Investment Mgmt Only 4,473,360 4,059,870 2,949,945 2,736,215 2,418,944 Segment 4 Versatile Asset® Participants 10,661,044 13,335,516 10,766,345 10,743,420 9,549,807 Segment 5 Versatile Asset® II Participants 7,793,935 9,071,697 8,270,150 8,564,315 8,102,295 Segment 6 Versatile Asset® III Participants 757,358 803,858 836,535 790,869 799,915 Segment 7 Versatile Asset® IV Participants 82,582 84,454 140,861 149,870 163,807 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 51,238,093 48,934,828 36,749,091 32,881,374 26,313,511 Segment 9 Versatile Portfolios™ Participants (No-Load) 18,111,463 18,845,970 12,346,518 11,763,408 8,690,285 Segment 10 Co-operators Group Retirement Income Product 7,165,570 5,759,815 4,604,537 3,355,599 2,781,401 Segment 11 Versatile Portfolios™ TFSA 4,339,501 3,459,933 1,711,667 1,046,479 358,321 Segment 12 Versatile Portfolios™ Education Savings Plan 1,421,264 1,081,089 582,188 358,281 92,570

Number of units outstandingSegment 1 Group Retirement Products 72,914 58,052 49,063 47,879 41,219 Segment 2 Seed Money - - - 4,619 4,619 Segment 3 Group Retirement - Investment Mgmt Only 34,278 30,469 22,819 22,794 21,293 Segment 4 Versatile Asset® Participants 49,726 55,006 48,763 53,214 49,006 Segment 5 Versatile Asset® II Participants 50,786 55,865 52,262 57,799 56,636 Segment 6 Versatile Asset® III Participants 5,571 5,666 5,988 6,003 6,300 Segment 7 Versatile Asset® IV Participants 533 530 909 1,036 1,191 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 391,353 358,252 273,654 258,959 215,003 Segment 9 Versatile Portfolios™ Participants (No-Load) 136,240 136,226 89,975 90,354 68,917 Segment 10 Co-operators Group Retirement Income Product 55,468 43,401 35,801 28,052 24,531 Segment 11 Versatile Portfolios™ TFSA 38,277 29,202 14,693 9,485 3,365 Segment 12 Versatile Portfolios™ Education Savings Plan 12,498 9,152 5,029 3,285 883



15


Co-operators Canadian Resource FundFund managed by Addenda Capital Inc.


2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 16 63 Net assets at beginning of year 32,390 32,323 Short-term notes 662 528 Investment Income receivable 75 65 Increase (decrease) in net assets from operations (1,828) (1,554) Stocks 28,133 31,802

28,886 32,458 Fund of funds rebalancing (note 2) 224 154 Liabilities

Transactions with unitholdersPayables for management and audit fees (note 7) 63 68 Unitholders' contributions 2,925 4,623

Unitholders' withdrawals (2,764) (3,531) Net assets 28,823 32,390 Transfers (to) from other funds (2,124) 375

Net increase (decrease) from unitholders' transactions (1,963) 1,467

Statement of Operations Net assets at end of year 28,823 32,390



Dividend income 777 727 Interest income - short term notes 9 10 Other income 4 3

790 740

ExpensesManagement fees (notes 7 and 9) 721 816 Audit, legal and other fees (note 9) 7 10 Transaction costs 125 65

853 891

Net investment income (loss) (63) (151)

Gains (losses) on investmentsRealized gains (losses) (3,644) (972) Unrealized gains (losses) 1,879 (431)

(1,765) (1,403)

Increase (decrease) in net assets from operations (1,828) (1,554)

16


Co-operators Canadian Resource Fund


Shares or Average FairPar Value Investment Cost ($) Value ($)

CASH AND CASH EQUIVALENTS15,939 CANADIAN DOLLAR 15,939 15,93915,939 15,939 15,939

SHORT TERM NOTES DISCOUNT NOTES 2.30%

665,000 CANADA T BILLS T/B,2014-06-05 662,197 662,197 665,000 662,197 662,197

STOCKSCANADIAN COMMON STOCKS ENERGY 61.24%

5,000 BAYTEX ENERGY CORP 140,541 208,0508,000 BONAVISTA ENERGY 228,873 111,1206,930 BONTERRA ENERGY CORP 266,534 375,190

12,500 CAMECO CORP 254,229 275,50056,820 CDN NATURAL RES 1,944,190 2,040,40634,820 CENOVUS ENERGY 1,093,668 1,058,52832,451 CRESCENT POINT ENRGY 972,334 1,337,63017,410 ENBRIDGE INC 660,392 807,30231,580 ENCANA CORPORATION 923,646 604,75726,520 ENERFLEX LTD 354,612 397,53521,740 ENSIGN ENERGY SERVCS 373,889 362,84112,900 IMPERIAL OIL LTD 590,247 606,42917,300 INTER PIPELINE LTD 340,265 446,859

4,780 KEYERA CORP 241,848 304,82127,100 LEGACY OIL+GAS 348,518 166,12342,300 PEMBINA PIPELINE 1,360,043 1,582,443

7,300 SHAWCOR LTD 210,312 310,10469,130 SUNCOR ENERGY INC 2,371,652 2,572,32737,000 TALISMAN ENERGY INC 704,750 456,58014,600 TOURMALINE OIL CORP 544,777 651,89042,800 TRANSCANADA CORP 2,073,924 2,074,944

4,100 TRILOGY ENERGY CORP 119,086 113,16012,500 VERMILION ENERGY INC 532,673 779,000

545,581 16,651,003 17,643,539

MATERIALS 36.41%10,380 AGRIUM INC 962,051 1,008,417

101,250 ARGONAUT GOLD INC 594,198 537,63842,830 CANFOR CORPORATION 797,801 1,137,993

5,500 CCL INDUSTRIES INC 369,658 435,215124,790 DETOUR GOLD CORP 1,381,191 510,391

18,600 DOMINION DIAMOND CRP 274,429 279,37235,600 FIRST QUANTUM MNRL 605,691 680,67239,710 GOLDCORP INC 1,053,653 912,93348,260 INTL FOREST PRODUCTS 517,796 645,23663,600 LUNDIN MINING CORP 279,808 291,288

4,590 METHANEX CORP 142,900 287,518133,080 NEW GOLD INC 853,118 735,932

26,410 SILVER WHEATON 665,252 565,9666,300 STELLA JONES INC 117,507 171,675

11,400 WEST FRASER TIMBER 913,602 1,177,73414,900 WINPAK LTD 310,946 333,76085,060 YAMANA GOLD INC 870,564 777,448

772,260 10,710,165 10,489,188

1,317,841 TOTAL CANADIAN COMMON STOCKS 27,361,168 28,132,727

1,998,780 TOTAL INVESTMENTS 28,039,304 28,810,863ACCRUED INCOME 75,403 75,403PAYABLES - MANAGEMENT AND AUDIT FEES (62,784) (62,784) NET ASSETS 28,051,923 28,823,482

17


Co-operators Canadian Resource FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 281.26 299.15 329.10 392.25 331.32 Segment 3 Group Retirement - Investment Mgmt Only 119.81 125.66 129.78 153.32 124.94 Segment 4 Versatile Asset® Participants 254.63 268.58 279.99 334.30 275.31 Segment 5 Versatile Asset® II Participants 249.37 262.64 274.13 328.45 272.24 Segment 6 Versatile Asset® III Participants 215.28 225.36 236.40 283.56 234.63 Segment 7 Versatile Asset® IV Participants 276.50 292.53 304.73 363.09 298.26 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 225.88 240.47 252.16 302.38 249.93 Segment 9 Versatile Portfolios™ Participants (No-Load) 222.14 237.10 249.00 299.07 247.60 Segment 11 Versatile Portfolios™ TFSA 126.79 135.18 141.93 170.45 141.13 Segment 12 Versatile Portfolios™ Education Savings Plan 100.38 106.49 111.24 132.92 109.48


2013 2012 2011 2010 2009Net assets (note 5)

Segment 1 Group Retirement Products 4,272,891 4,675,991 4,677,072 5,367,796 4,413,362 Segment 3 Group Retirement - Investment Mgmt Only 541,146 488,003 440,274 487,309 426,249 Segment 4 Versatile Asset® Participants 2,334,800 3,025,065 3,665,493 4,407,400 3,442,757 Segment 5 Versatile Asset® II Participants 1,993,945 2,626,050 3,264,994 3,460,657 2,759,474 Segment 6 Versatile Asset® III Participants 109,694 202,198 216,172 274,297 230,404 Segment 7 Versatile Asset® IV Participants 1,276 1,161 1,107 1,317 1,469 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 14,421,701 15,146,244 13,460,157 11,352,656 6,852,707 Segment 9 Versatile Portfolios™ Participants (No-Load) 3,578,526 4,740,480 5,289,942 4,484,144 2,934,114 Segment 11 Versatile Portfolios™ TFSA 1,391,776 1,366,013 1,226,035 714,669 213,259 Segment 12 Versatile Portfolios™ Education Savings Plan 220,469 202,349 145,054 86,103 8,698

Number of units outstandingSegment 1 Group Retirement Products 15,192 15,631 14,212 13,685 13,321 Segment 3 Group Retirement - Investment Mgmt Only 4,517 3,883 3,392 3,178 3,412 Segment 4 Versatile Asset® Participants 9,169 11,263 13,091 13,184 12,505 Segment 5 Versatile Asset® II Participants 7,996 9,999 11,910 10,536 10,136 Segment 6 Versatile Asset® III Participants 510 897 914 967 982 Segment 7 Versatile Asset® IV Participants 5 4 4 4 5 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 63,846 62,987 53,380 37,544 27,418 Segment 9 Versatile Portfolios™ Participants (No-Load) 16,109 19,994 21,244 14,994 11,850 Segment 11 Versatile Portfolios™ TFSA 10,977 10,105 8,638 4,193 1,511 Segment 12 Versatile Portfolios™ Education Savings Plan 2,196 1,900 1,304 648 79

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.23% 2.24% 2.24% 2.19% 2.14%Segment 5 Versatile Asset® II Participants 2.52% 2.53% 2.53% 2.47% 2.41%Segment 6 Versatile Asset® III Participants 2.76% 2.76% 2.76% 2.68% 2.62%Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2.73% 2.73% 2.74% 2.67% 2.62%Segment 9 Versatile Portfolios™ Participants (No-Load) 2.87% 2.88% 2.88% 2.83% 2.77%Segment 11 Versatile Portfolios™ TFSA 2.86% 2.86% 2.88% 2.83% 2.77%Segment 12 Versatile Portfolios™ Education Savings Plan 2.35% 2.35% 2.35% 2.29% 2.25%


18


Co-operators Money Market FundFund managed by Addenda Capital Inc.


2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 11 7 Net assets at beginning of year 8,253 8,659 Short-term notes 4,775 4,918 Investment Income receivable 34 30 Increase (decrease) in net assets from operations 3 (20) Bonds and debentures 4,558 3,307

9,378 8,262 Fund of funds rebalancing (note 2) 66 29

Liabilities Transactions with unitholdersPayables for management and audit fees (note 7) 11 9 Unitholders' contributions 2,008 1,951

Unitholders' withdrawals (1,425) (2,503) Net assets 9,367 8,253 Transfers (to) from other funds 462 137

Net increase (decrease) from unitholders' transactions 1,045 (415)

Statement of Operations Net assets at end of year 9,367 8,253 For the years ended December 31

2013 2012($000's) ($000's)

Investment IncomeInterest income - bonds and debentures 100 88 Interest income - short term notes 60 59

160 147

ExpensesManagement fees (notes 7 and 9) 112 127 Audit, legal and other fees (note 9) 3 4

115 131

Net investment income (loss) 45 16

Gains (losses) on investmentsRealized gains (losses) (21) (32) Unrealized gains (losses) (21) (4)

(42) (36)

Increase (decrease) in net assets from operations 3 (20)

19


Co-operators Money Market Fund


Shares or Average FairPar Value Investment Cost ($) Value ($)

CASH AND CASH EQUIVALENTS10,713 CANADIAN DOLLAR 10,713 10,71310,713 10,713 10,713

SHORT TERM NOTES DISCOUNT NOTES 51.10%

500,000 BANNER TR ABCP D/N,2014-05-15 496,950 496,950760,000 CANADA T BILLS T/B,2014-06-05 756,468 756,468

1,010,000 CANADA T BILLS T/B,2014-10-23 1,001,163 1,001,163 500,000 CANADA T BILLS T/B,2014-12-18 495,135 495,135250,000 CDN MAS.TRS ABCP D/N,2014-05-09 248,428 248,428600,000 CONCENTRA FIN CA D/N,2014-09-26 588,678 588,678600,000 PRIME TRST ABCP D/N,2014-03-03 596,154 596,154600,000 RIDGE TRST ABCP D/N,2014-12-17 591,912 591,912

4,820,000 4,774,888 4,774,888

BONDS AND DEBENTURESCANADACORPORATEFINANCIAL PRODUCTS 36.96%REGULAR BONDS

500,000 BANK NOVA SCOTIA FRN,1.358%,2014-09-10 500,000 500,215600,000 BANK OF MONTREAL FRN,3.160%,2014-06-20 600,000 600,066600,000 CAISSE CENT. DES FRN,1.440%,2014-05-23 600,000 600,078600,000 DAIMLER CANADA FIN,1.370%,2014-04-14 608,880 602,742500,000 NATIONAL BK CDA FRN,5.190%,2014-02-25 500,000 500,085650,000 ROYAL BANK CDA FRN,4.804%,2014-09-19 650,000 650,455

3,450,000 3,458,880 3,453,641

INDUSTRIAL PRODUCTS 5.36%REGULAR BONDS

500,000 SHOPPERS DRUG MART,0.000%,2014-01-20 516,035 500,590

SECURITIZATION 6.46%REGULAR BONDS

600,000 BROADWAY CR CARD TR,0.000%,2014-03-17 614,568 604,020

4,550,000 TOTAL BONDS AND DEBENTURES 4,589,483 4,558,251

9,380,713 TOTAL INVESTMENTS 9,375,084 9,343,852ACCRUED INCOME 34,360 34,360PAYABLES - MANAGEMENT AND AUDIT FEES (11,046) (11,046)NET ASSETS 9,398,398 9,367,166

1.00 US = 1.062500 CA 31 DEC 13

20


Co-operators Money Market FundFinancial Highlights (unaudited)For the years ended December 31


The Fund's Net Asset Value per Unit2013 2012 2011 2010 2009

Net Asset Value per Unit (note 8)Segment 1 Group Retirement Products 125.20 126.49 127.05 127.07 128.32 Segment 2 Seed Money - - - 103.01 102.12 Segment 3 Group Retirement - Investment Mgmt Only 104.58 103.73 102.45 100.97 100.99 Segment 4 Versatile Asset® Participants 128.38 127.91 127.84 128.35 129.36 Segment 5 Versatile Asset® II Participants 117.85 117.67 117.98 118.80 120.07 Segment 6 Versatile Asset® III Participants 104.38 105.00 105.74 106.95 108.37 Segment 7 Versatile Asset® IV Participants 120.85 120.26 119.73 119.13 119.05 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 105.18 105.05 105.48 106.46 107.86 Segment 9 Versatile Portfolios™ Participants (No-Load) 104.36 104.35 104.69 105.63 107.05 Segment 10 Group Retirement Income Product 99.33 - - - - Segment 11 Versatile Portfolios™ TFSA 97.02 96.93 97.57 98.64 100.07 Segment 12 Versatile Portfolios™ Education Savings Plan 99.15 98.50 98.46 98.89 99.72


Net assets (note 5)Segment 1 Group Retirement Products 5,274,348 4,610,172 4,321,120 3,942,374 3,742,033 Segment 2 Seed Money - - - 8,436 8,364 Segment 3 Group Retirement - Investment Mgmt Only 363,000 391,303 624,617 2,350,197 2,055,370 Segment 4 Versatile Asset® Participants 261,453 515,502 611,805 885,254 1,547,600 Segment 5 Versatile Asset® II Participants 431,233 546,379 911,133 1,142,810 1,374,695 Segment 6 Versatile Asset® III Participants 34,849 42,016 43,048 102,058 107,140 Segment 7 Versatile Asset® IV Participants 196,418 202,745 283,681 289,010 322,780 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 1,911,663 1,395,873 1,104,948 1,013,044 1,638,694 Segment 9 Versatile Portfolios™ Participants (No-Load) 456,305 362,906 592,887 887,013 1,641,993 Segment 10 Group Retirement Income Product 140,025 - - - - Segment 11 Versatile Portfolios™ TFSA 130,688 50,907 44,642 87,787 124,784 Segment 12 Versatile Portfolios™ Education Savings Plan 167,524 135,793 121,757 42,437 15,598

Number of units outstandingSegment 1 Group Retirement Products 42,127 36,447 34,010 31,025 29,161 Segment 2 Seed Money - - - 82 82 Segment 3 Group Retirement - Investment Mgmt Only 3,471 3,772 6,097 23,275 20,353 Segment 4 Versatile Asset® Participants 2,037 4,030 4,786 6,897 11,963 Segment 5 Versatile Asset® II Participants 3,659 4,643 7,723 9,620 11,449 Segment 6 Versatile Asset® III Participants 334 400 407 954 989 Segment 7 Versatile Asset® IV Participants 1,625 1,686 2,369 2,426 2,711 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 18,175 13,288 10,476 9,515 15,193 Segment 9 Versatile Portfolios™ Participants (No-Load) 4,372 3,478 5,663 8,397 15,339 Segment 10 Group Retirement Income Product 1,410 - - - - Segment 11 Versatile Portfolios™ TFSA 1,347 525 458 890 1,247 Segment 12 Versatile Portfolios™ Education Savings Plan 1,690 1,379 1,237 429 156


Portfolio turnover rate (note 10) - - - - -

21


Co-operators U.S. Equity FundFund managed by Addenda Capital Inc.


2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 92 673 Net assets at beginning of year 11,313 6,170 Investment Income receivable 21 8 Stocks 20,306 10,862 Increase (decrease) in net assets from operations 5,392 779

20,419 11,543 Fund of funds rebalancing (note 2) (1,231) 1,889

LiabilitiesPayments for investments purchased - 211 Transactions with unitholdersPayables for management and audit fees (note 7) 40 19 Unitholders' contributions 4,149 904

40 230 Unitholders' withdrawals (1,440) (688) Net assets 20,379 11,313 Transfers (to) from other funds 2,196 2,259

Net increase (decrease) from unitholders' transactions 4,905 2,475

Statement of Operations Net assets at end of year 20,379 11,313



Dividend income 210 128 Foreign exchange gain (loss) 16 (35) Other income 4 -

230 93


354 169


Gains (losses) on investmentsRealized gains (losses) 366 54 Unrealized gains (losses) 5,150 801

5,516 855

Increase (decrease) in net assets from operations 5,392 779

22


Co-operators U.S. Equity Fund



CASH AND CASH EQUIVALENTS U.S. - HEALTH CARE 16.37%(3,629) CANADIAN DOLLAR (3,629) (3,629) 2,030 ALLERGAN INC 176,241 239,58690,141 US DOLLARS 95,775 95,775 4,642 AMERISOURCE-BERGEN 185,738 346,82786,512 92,146 92,146 8,014 EXPRESS SCRIPTS HLDG 330,305 598,000

11,256 GILEAD SCIENCES INC 406,541 898,516STOCKS 3,940 JOHNSON & JOHNSON 300,769 383,377FOREIGN STOCKS (INCLUDING U.S.) 2,627 STRYKER CORP 153,119 209,674U.S - ENERGY 6.32% 5,606 THERMO FISHER SCI 365,786 663,183

1,510 APACHE CORP 136,722 137,864 38,115 1,918,499 3,339,1632,910 CHEVRON CORP 324,971 386,2063,960 EXXON MOBIL CORP 344,009 425,799 U.S. - FINANCIALS 15.81%1,310 NATIONAL OILWELL VAR 92,759 110,682 2,720 AFLAC INC 170,774 193,0232,380 SCHLUMBERGER LTD 172,265 227,866 4,222 AMERICAN EXPRESS CO 237,514 406,958

12,070 1,070,726 1,288,417 2,650 BERKSHIRE HATHAWAY 238,945 333,7083,550 FRANKLIN RES INC 149,363 217,713

U.S - MATERIALS 2.38% 1,040 GOLDMAN SACHS GROUP 159,259 195,8721,586 DU PONT E I DE NEMOU 78,190 109,483 7,185 JPMORGAN CHASE & CO 353,603 446,3632,260 MONSANTO CO 203,031 279,866 2,360 PNC FINL SVCS GRP 152,628 194,507

700 PRAXAIR INC 91,398 96,702 1,650 PRICE T ROWE GRP 104,036 146,8424,546 372,619 486,051 5,051 STATE STREET CORP 278,123 393,915

4,264 US BANCORP DEL 143,577 182,987U.S. - INDUSTRIALS 11.35% 1,800 WADDELL & REED FINL 61,283 124,561

1,390 3M COMPANY 127,678 207,102 8,065 WELLS FARGO & CO 296,015 388,9505,908 CSX CORP 125,030 180,534 44,557 2,345,120 3,225,3993,260 DANAHER CORP 162,629 267,3671,047 DEERE & CO 87,126 101,599 U.S - INFORMATION TECHNOLOGY 21.93%1,440 FEDEX CORP 133,351 219,983 3,040 ADOBE SYSTEMS INC 118,892 193,3807,250 GENERAL ELECTRIC CO 207,761 215,919 2,730 AKAMAI TECH INC 95,603 136,8513,830 HONEYWELL INTL INC 219,946 371,818 717 ALLIANCE DATA SYSTEM 104,923 200,3112,160 SENSATA TECHNOLOGIES 75,366 88,931 2,530 AMPHENOL CORPORATION 131,138 239,7002,340 TYCO INTL LTD 59,823 102,011 1,431 APPLE INC 525,001 852,6921,365 UNION PAC CORP 163,283 243,609 1,227 AUTOMATIC DATA PROC 66,430 105,3252,623 UNITED TECHNOLOGIES 234,119 317,098 2,030 AVAGO TECHNOLOGIES 72,303 114,099

32,613 1,596,112 2,315,971 6,016 CISCO SYSTEMS INC 136,106 143,4362,620 COGNIZANT TECH SOLNS 147,433 281,131

U.S. - CONSUMER DISCRETIONARY 15.53% 8,472 EMC CORP MASS 188,036 226,3883,438 BED BATH & BEYOND 233,069 293,289 9,610 INTEL CORP 213,136 264,9667,566 CBS CORPORATION 255,165 512,157 2,787 INTUIT 140,207 225,9686,429 NIKE INC 268,375 537,312 10,457 MICROSOFT CORP 362,742 415,757

333 PRICELINE COM INC 200,568 411,162 8,710 ORACLE CORP 220,965 354,1652,765 TARGET CORPORATION 165,935 185,875 4,510 QUALCOMM INC 253,052 355,7499,118 TJX COMPANIES INC 300,401 617,408 1,540 VISA INC 187,305 364,3111,985 TUPPERWARE BRANDS 148,307 199,370 68,427 2,963,272 4,474,2295,072 WALT DISNEY CO 264,180 411,666

36,706 1,836,000 3,168,239 U.S. - OTHER 0.86%890 SPDR S&P 500 ETF TR 167,004 174,515

U.S. - CONSUMER STAPLES 8.99%4,374 CHURCH & DWIGHT INC 183,961 308,028 265,156 TOTAL FOREIGN STOCKS (INCLUDING U.S) 13,554,863 20,306,4649,170 COCA-COLA CO 296,904 402,2933,320 COLGATE PALMOLIVE CO 164,490 229,993 351,668 TOTAL INVESTMENTS 13,647,009 20,398,6102,770 COSTCO WHSL CORP 240,039 350,232 ACCRUED INCOME 20,843 20,8432,832 CVS CAREMARK CORP 144,923 215,324 PAYABLES - MANAGEMENT AND AUDIT FEES (40,481) (40,481)2,276 HORMEL FOODS CORP 76,002 109,208 NET ASSETS 13,627,371 20,378,9722,490 PEPSICO INC 179,192 219,402

27,232 1,285,511 1,834,480 1.00 US = 1.062500 CA 31 DEC 13

23


Co-operators U.S. Equity FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 189.03 130.92 122.25 121.69 115.29 Segment 3 Group Retirement - Investment Mgmt Only 146.86 102.07 90.61 89.21 83.20 Segment 4 Versatile Asset® Participants 206.26 144.87 129.89 129.22 121.66 Segment 5 Versatile Asset® II Participants 74.58 52.55 47.26 47.16 44.52 Segment 6 Versatile Asset® III Participants 137.03 97.46 87.65 87.49 82.98 Segment 7 Versatile Asset® IV Participants 145.50 102.44 92.32 91.77 86.52 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 135.61 95.46 85.81 85.75 81.27 Segment 9 Versatile Portfolios™ Participants (No-Load) 135.50 97.61 89.49 88.67 83.43 Segment 10 Group Retirement Income Product 141.02 - - - - Segment 11 Versatile Portfolios™ TFSA 173.79 122.78 110.80 110.91 105.09 Segment 12 Versatile Portfolios™ Education Savings Plan 187.24 131.63 118.19 117.70 110.94


2013 2012 2011 2010 2009Net assets (note 5)

Segment 1 Group Retirement Products 4,863,823 3,550,551 2,491,009 2,454,136 2,191,319 Segment 3 Group Retirement - Investment Mgmt Only 1,280,843 1,154,999 516,637 523,313 474,506 Segment 4 Versatile Asset® Participants 2,457,877 1,634,436 1,277,401 1,382,469 1,407,752 Segment 5 Versatile Asset® II Participants 2,303,642 1,687,409 943,097 930,795 969,556 Segment 6 Versatile Asset® III Participants 115,302 123,613 62,344 67,580 66,184 Segment 7 Versatile Asset® IV Participants 17,546 13,057 6,083 10,377 10,344 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 6,760,936 2,365,417 680,648 468,995 322,082 Segment 9 Versatile Portfolios™ Participants (No-Load) 1,900,442 499,418 148,355 139,036 109,615 Segment 10 Group Retirement Income Product 6,633 - - - - Segment 11 Versatile Portfolios™ TFSA 573,330 225,561 34,920 11,612 3,522 Segment 12 Versatile Portfolios™ Education Savings Plan 100,160 55,244 11,158 3,696 357

Number of units outstandingSegment 1 Group Retirement Products 25,731 27,119 20,376 20,167 19,007 Segment 3 Group Retirement - Investment Mgmt Only 8,721 11,315 5,702 5,866 5,703 Segment 4 Versatile Asset® Participants 11,917 11,282 9,835 10,699 11,571 Segment 5 Versatile Asset® II Participants 30,889 32,112 19,957 19,739 21,779 Segment 6 Versatile Asset® III Participants 841 1,268 711 772 798 Segment 7 Versatile Asset® IV Participants 121 127 66 113 120 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 49,854 24,779 7,932 5,469 3,963 Segment 9 Versatile Portfolios™ Participants (No-Load) 14,025 5,116 1,658 1,568 1,314 Segment 10 Group Retirement Income Product 47 - - - - Segment 11 Versatile Portfolios™ TFSA 3,299 1,837 315 105 34 Segment 12 Versatile Portfolios™ Education Savings Plan 535 420 94 31 3



24


Co-operators U.S. Growth FundFund managed by Addenda Capital Inc.


2013 2012 2013 2012($000's) ($000's) ($000's) ($000's)

AssetsCash and cash equivalents 14 (479) Net assets at beginning of year 701 3,059 Receivables from investments sold - 493 Investment Income receivable - 1 Increase (decrease) in net assets from operations 236 306 Stocks 728 688

742 703 Fund of funds rebalancing (note 2) - (2,109)

Liabilities Transactions with unitholdersPayables for management and audit fees (note 7) 1 2 Unitholders' contributions 102 646

Unitholders' withdrawals (39) (368) Net assets 741 701 Transfers (to) from other funds (259) (833)

Net increase (decrease) from unitholders' transactions (196) (555)

Statement of Operations Net assets at end of year 741 701 For the years ended December 31

2013 2012($000's) ($000's)

Investment IncomeDividend income 8 47 Foreign exchange gain (loss) (6) (132)

2 (85)


15 88


Gains (losses) on investmentsRealized gains (losses) 120 929 Unrealized gains (losses) 129 (450)

249 479

Increase (decrease) in net assets from operations 236 306

25


Co-operators U.S. Growth Fund



CASH AND CASH EQUIVALENTS U.S. - HEALTH CARE 16.35%10,255 CANADIAN DOLLAR 10,255 10,255 129 ALLERGAN INC 11,396 15,225

3,186 US DOLLARS 3,385 3,385 170 AMERISOURCE-BERGEN 10,055 12,70213,441 13,640 13,640 280 EXPRESS SCRIPTS HLDG 11,555 20,893

454 GILEAD SCIENCES INC 17,548 36,240STOCKS 80 JOHNSON & JOHNSON 5,708 7,784FOREIGN STOCKS (INCLUDING U.S.) 65 STRYKER CORP 3,454 5,188U.S - ENERGY 3.80% 196 THERMO FISHER SCI 10,122 23,187

40 APACHE CORP 3,929 3,652 1,374 69,838 121,219100 CHEVRON CORP 12,589 13,272

20 NATIONAL OILWELL VAR 1,387 1,690 U.S. - FINANCIALS 4.66%100 SCHLUMBERGER LTD 8,156 9,574 80 AFLAC INC 4,990 5,677260 26,061 28,188 100 AMERICAN EXPRESS CO 4,699 9,639

29 GOLDMAN SACHS GROUP 4,317 5,462U.S - MATERIALS 4.30% 40 PNC FINL SVCS GRP 2,434 3,297

70 DU PONT E I DE NEMOU 3,425 4,832 20 PRICE T ROWE GRP 1,026 1,78060 ECOLAB INC 5,775 6,647 50 STATE STREET CORP 2,555 3,899

120 MONSANTO CO 11,516 14,860 100 WELLS FARGO & CO 3,393 4,82340 PRAXAIR INC 5,212 5,526 419 23,414 34,577

290 25,928 31,865U.S - INFORMATION TECHNOLOGY 27.30%

U.S. - INDUSTRIALS 11.37% 81 ADOBE SYSTEMS INC 2,987 5,15335 3M COMPANY 2,397 5,215 65 AKAMAI TECH INC 1,719 3,258

318 CSX CORP 6,283 9,717 35 ALLIANCE DATA SYSTEM 4,329 9,778115 DANAHER CORP 4,715 9,432 85 AMPHENOL CORPORATION 3,499 8,053

30 DEERE & CO 2,429 2,911 56 APPLE INC 18,258 33,36960 DOVER CORP 3,213 6,154 80 AUTODESK INC 2,784 4,27765 FEDEX CORP 7,021 9,930 20 AUTOMATIC DATA PROC 860 1,717

120 HONEYWELL INTL INC 5,770 11,649 111 AVAGO TECHNOLOGIES 4,022 6,239120 SENSATA TECHNOLOGIES 3,164 4,941 121 CISCO SYSTEMS INC 2,853 2,885

75 TYCO INTL LTD 1,975 3,270 165 COGNIZANT TECH SOLNS 8,855 17,70549 UNION PAC CORP 5,382 8,745 525 EMC CORP MASS 12,824 14,029

102 UNITED TECHNOLOGIES 8,512 12,330 20 F5 NETWORKS INC 1,405 1,9311,089 50,861 84,294 6 GOOGLE INC 2,894 7,140

280 INTEL CORP 6,461 7,720U.S. - CONSUMER DISCRETIONARY 17.25% 93 INTUIT 3,483 7,540

173 BED BATH & BEYOND 11,057 14,758 430 MICROSOFT CORP 13,961 17,096280 CBS CORPORATION 6,147 18,954 330 ORACLE CORP 7,998 13,418110 DISH NETWORK CORP 3,390 6,767 205 QUALCOMM INC 10,670 16,170236 NIKE INC 6,925 19,724 90 SALESFORCE.COM 795 5,277

16 PRICELINE COM INC 1,719 19,756 83 VISA INC 10,279 19,63471 TARGET CORPORATION 3,783 4,773 2,881 120,936 202,389

305 TJX COMPANIES INC 9,137 20,65390 TUPPERWARE BRANDS 6,178 9,039 U.S. - TELECOMMUNICATION SERVICES 0.64%

166 WALT DISNEY CO 8,001 13,473 110 COGENT COMM GROUP IN 1,520 4,7211,447 56,337 127,897

U.S. - OTHER 3.88%U.S. - CONSUMER STAPLES 8.62% 315 ISHARES 22,864 28,760

110 CHURCH & DWIGHT INC 3,049 7,746220 COCA-COLA CO 6,068 9,652 9,088 TOTAL FOREIGN STOCKS (INCLUDING U.S) 438,673 727,843

94 COLGATE PALMOLIVE CO 3,993 6,512103 COSTCO WHSL CORP 9,686 13,023 22,529 TOTAL INVESTMENTS 452,313 741,483146 CVS CAREMARK CORP 8,141 11,101 ACCRUED INCOME 475 475

91 HORMEL FOODS CORP 2,691 4,366 PAYABLES - MANAGEMENT AND AUDIT FEES (1,049) (1,049)50 PEPSICO INC 3,456 4,406 NET ASSETS 451,739 740,90989 UNITED NAT FOODS INC 3,830 7,127

903 40,914 63,933 1.00 US = 1.062500 CA 31 DEC 13

26


Co-operators U.S. Growth FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 98.14 77.03 65.75 63.81 57.79 Segment 3 Group Retirement - Investment Mgmt Only - - 97.01 94.75 86.73 Segment 4 Versatile Asset® Participants - - 62.21 61.53 56.84 Segment 5 Versatile Asset® II Participants - - 60.44 59.93 55.53 Segment 6 Versatile Asset® III Participants - - 90.02 89.17 82.82 Segment 7 Versatile Asset® IV Participants - - 97.39 96.27 89.10 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 90.45 89.46 83.12 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 96.13 95.52 93.36 Segment 11 Versatile Portfolios™ TFSA - - 123.34 122.48 113.91 Segment 12 Versatile Portfolios™ Education Savings Plan - - 125.54 124.02 114.73


2013 2012 2011 2010 2009Net assets (note 5)

Segment 1 Group Retirement Products 740,967 701,219 988,195 943,632 832,822 Segment 3 Group Retirement - Investment Mgmt Only - - 569,956 576,373 535,598 Segment 4 Versatile Asset® Participants - - 241,685 244,282 223,525 Segment 5 Versatile Asset® II Participants - - 459,088 421,402 430,446 Segment 6 Versatile Asset® III Participants - - 34,048 39,465 36,213 Segment 7 Versatile Asset® IV Participants - - 7,468 7,810 7,718 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 620,287 334,073 171,073 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 102,254 77,627 30,055 Segment 11 Versatile Portfolios™ TFSA - - 30,846 10,044 4,031 Segment 12 Versatile Portfolios™ Education Savings Plan - - 5,813 1,099 121

Number of units outstandingSegment 1 Group Retirement Products 7,550 9,103 15,029 14,789 14,411 Segment 3 Group Retirement - Investment Mgmt Only - - 5,875 6,083 6,175 Segment 4 Versatile Asset® Participants - - 3,885 3,970 3,932 Segment 5 Versatile Asset® II Participants - - 7,596 7,032 7,752 Segment 6 Versatile Asset® III Participants - - 378 443 437 Segment 7 Versatile Asset® IV Participants - - 77 81 87 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 6,858 3,734 2,058 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 1,064 813 322 Segment 11 Versatile Portfolios™ TFSA - - 250 82 35 Segment 12 Versatile Portfolios™ Education Savings Plan - - 46 9 1

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants - - 2.29% 2.24% 2.24%Segment 5 Versatile Asset® II Participants - - 2.58% 2.52% 2.50%Segment 6 Versatile Asset® III Participants - - 2.81% 2.74% 2.71%Segment 7 Versatile Asset® IV Participants - - 2.56% 2.50% 2.50%Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 2.78% 2.73% 2.71%Segment 9 Versatile Portfolios™ Participants (No-Load) - - 2.93% 2.88% 2.87%Segment 11 Versatile Portfolios™ TFSA - - 2.93% 2.89% 2.87%Segment 12 Versatile Portfolios™ Education Savings Plan - - 2.40% 2.34% 2.34%


27


See accompanying notes to the financial statements

Co-operators AGF Clean Environment Equity FundUnderlying fund managed by AGF Investments Inc.


2013 2012 2013 2012Fund of funds (note 2) ($000's) ($000's) Fund of funds (note 2) ($000's) ($000's)

Assets Net assets at beginning of year 69 796 Investment in investment fund units 90 69

Increase (decrease) in net assets from operations 21 75 Liabilities

Payables - - Fund of funds rebalancing (note 2) - 88

Net assets 90 69 Transactions with unitholdersUnitholders' contributions 1 183 Unitholders' withdrawals (1) (561)

Statement of Operations Transfers (to) from other funds - (512) For the years ended December 31 Net increase (decrease) from unitholders' transactions - (890)

2013 2012Fund of funds (note 2) ($000's) ($000's) Net assets at end of year 90 69

Investment incomeDistribution from underlying fund - -

Expenses

Management fees (note 9) 2 29


Gains (losses) on investmentsRealized and unrealized gains (losses) 23 104


Top Holdings of Underlying Fund (unaudited)As at December 31, 2013

AGF Clean Environment Equity Fund

Pentair Inc. 4.56% Acuity Brands Inc. 2.81%Johnson Controls Inc. 4.48% ViXS Systems Inc. 2.63%Thermo Fisher Scientific Inc. 4.42% Siemens AG 2.58%Praxair Inc. 4.02% Koninklijke Philips NV 2.57%Cummins Inc. 3.96% ABB Ltd. 2.56%Secure Energy Services Inc. 3.76% United Natural Foods Inc. 2.33%Xylem Inc. 3.72% MasTec Inc. 2.32%Trimble Navigation Ltd. 3.71% AltaGas Ltd. 2.29%Whole Foods Market Inc. 3.46% Cascades Inc. 2.14%OSRAM Licht AG 3.42% Newalta Corp. 2.08%Pall Corp. 3.37% Cree Inc. 2.07%Quanta Services Inc. 3.15% Abengoa SA 1.97%CLARCOR Inc. 2.88%

28



Co-operators AGF Clean Environment Equity Fund Financial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 127.47 102.10 91.12 104.98 - Segment 2 Seed Money 192.42 148.64 129.89 149.20 141.42 Segment 4 Versatile Asset® Participants - - 119.61 140.76 136.53 Segment 5 Versatile Asset® II Participants - - 118.27 139.70 136.03 Segment 6 Versatile Asset® III Participants - - 118.19 139.75 136.10 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 118.33 139.76 136.05 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 117.79 139.34 135.85 Segment 11 Versatile Portfolios™ TFSA - - 117.84 139.32 135.83 Segment 12 Versatile Portfolios™ Education Savings Plan - - 99.47 116.65 112.74


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 17,615 13,409 10,507 9,896 - Segment 2 Seed Money 72,580 56,066 220,814 253,637 240,411 Segment 4 Versatile Asset® Participants - - 34,724 23,989 14,228 Segment 5 Versatile Asset® II Participants - - 48,543 33,067 14,078 Segment 6 Versatile Asset® III Participants - - 1,229 2,188 845 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 293,100 289,571 65,951 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 124,802 49,902 25,775 Segment 11 Versatile Portfolios™ TFSA - - 55,771 35,171 16,244 Segment 12 Versatile Portfolios™ Education Savings Plan - - 6,356 5,017 1,287

Number of units outstandingSegment 1 Group Retirement Products 138 131 115 94 - Segment 2 Seed Money 377 377 1,700 1,700 1,700 Segment 4 Versatile Asset® Participants - - 290 170 104 Segment 5 Versatile Asset® II Participants - - 410 237 103 Segment 6 Versatile Asset® III Participants - - 10 16 6 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 2,477 2,072 485 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 1,060 358 190 Segment 11 Versatile Portfolios™ TFSA - - 473 252 120 Segment 12 Versatile Portfolios™ Education Savings Plan - - 64 43 11

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants - - 4.09% 3.99% 3.89%Segment 5 Versatile Asset® II Participants - - 4.50% 4.37% 4.25%Segment 6 Versatile Asset® III Participants - - 4.51% 4.38% 4.25%Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 4.47% 4.36% 4.25%Segment 9 Versatile Portfolios™ Participants (No-Load) - - 4.60% 4.51% 4.41%Segment 11 Versatile Portfolios™ TFSA - - 4.60% 4.52% 4.41%Segment 12 Versatile Portfolios™ Education Savings Plan - - 3.70% 3.60% 3.52%


29



Co-operators AGF Social Values Balanced FundUnderlying fund managed by AGF Investments Inc.



Assets Net assets at beginning of year 221 5,262 Investment in investment fund units 224 223

Increase (decrease) in net assets from operations 22 (29) Liabilities

Payables 1 2 Fund of funds rebalancing (note 2) - 119

Net assets 223 221 Transactions with unitholdersUnitholders' contributions 6 937 Unitholders' withdrawals (3) (1,265)

Statement of Operations Transfers (to) from other funds (23) (4,803) For the years ended December 31 Net increase (decrease) from unitholders' transactions (20) (5,131)


Investment incomeDistribution from underlying fund 3 30

ExpensesManagement fees (note 9) 6 201





AGF Social Values Balanced Fund

Cash & Cash Equivalents 3.94% Enbridge Inc. 1.45%Royal Bank of Canada 2.66% Newalta Corp. 1.42%Bank of Nova Scotia 2.64% Suncor Energy Inc. 1.42%Toronto-Dominion Bank 2.28% Phillips 66 1.41%Canadian Imperial Bank of Commerce 2.17% United Natural Foods Inc. 1.40%Secure Energy Services Inc. 1.96% Canada Housing Trust 2.05% June 15, 2018 1.33%Bank of Montreal 1.94% Canada Housing Trust 1.85% December 15, 2016 1.31%AltaGas Ltd. 1.84% LyondellBasell Industries NV 1.29%CSX Corp. 1.65% Just Energy Group Inc. 6.00% June 30, 2017 1.25%Johnson Controls Inc. 1.62% AMETEK Inc. 1.21%GLV Inc. 1.54% Canadian Hydro Developers Inc. 7.03% June 11, 2018 1.19%Ross Stores Inc. 1.54% Descartes Systems Group Inc. 1.19%Int'l Bank for Reconstruction & Development 1.70% Apr 30, 2015 1.50%

30



Co-operators AGF Social Values Balanced Fund Financial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 111.85 103.02 101.69 108.46 - Segment 2 Seed Money 172.71 155.68 151.20 157.91 140.79 Segment 4 Versatile Asset® Participants - - 136.39 145.87 133.04 Segment 5 Versatile Asset® II Participants - - 134.94 144.76 132.52 Segment 6 Versatile Asset® III Participants - - 134.76 144.74 132.51 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 134.94 144.78 132.51 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 134.32 144.34 132.30 Segment 11 Versatile Portfolios™ TFSA - - 134.30 144.32 132.30 Segment 12 Versatile Portfolios™ Education Savings Plan - - 114.43 121.94 110.80


2012 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 165,232 169,150 158,204 160,686 - Segment 2 Seed Money 57,630 51,945 130,560 268,439 239,350 Segment 4 Versatile Asset® Participants - - 225,689 155,944 57,143 Segment 5 Versatile Asset® II Participants - - 273,761 133,308 43,338 Segment 6 Versatile Asset® III Participants - - 136,090 121,570 91,131 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 2,555,063 1,689,962 599,455 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 1,098,978 498,637 60,843 Segment 11 Versatile Portfolios™ TFSA - - 562,191 410,869 55,827 Segment 12 Versatile Portfolios™ Education Savings Plan - - 121,903 91,014 10,866

Number of units outstandingSegment 1 Group Retirement Products 1,477 1,642 1,556 1,482 - Segment 2 Seed Money 334 334 863 1,700 1,700 Segment 4 Versatile Asset® Participants - - 1,655 1,069 430 Segment 5 Versatile Asset® II Participants - - 2,029 921 327 Segment 6 Versatile Asset® III Participants - - 1,010 840 688 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 18,935 11,672 4,524 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 8,182 3,455 460 Segment 11 Versatile Portfolios™ TFSA - - 4,186 2,847 422 Segment 12 Versatile Portfolios™ Education Savings Plan - - 1,065 746 98



31



Co-operators AGF Social Values Equity FundUnderlying fund managed by AGF Investments Inc.



Assets Net assets at beginning of year 57 2,288 Investment in investment fund units 74 58

Increase (decrease) in net assets from operations 18 (87) Liabilities

Payables - 1 Fund of funds rebalancing (note 2) - 876

Net assets 74 57 Transactions with unitholdersUnitholders' contributions - 652 Unitholders' withdrawals - (1,779)

Statement of Operations Transfers (to) from other funds (1) (1,893) For the years ended December 31 Net increase (decrease) from unitholders' transactions (1) (3,020)





Gains (losses) on investmentsRealized and unrealized gains (losses) 19 (18)



AGF Social Values Equity Fund

Cash & Cash Equivalents 4.29% Swedbank AB 2.60%Pfizer Inc. 4.14% Legal and General Group PLC 2.57%Deutsche Post AG 3.36% Western Digital Corp. 2.41%Texas Instruments Inc. 3.11% Allianz SE 2.34%AmerisourceBergen Corp. 3.10% AT&T Inc. 2.31%Lowe's Companies Inc. 3.09% BT Group PLC 2.30%Continental AG 3.06% General Electric Co. 2.22%Total SA 2.95% Westpac Banking Corp. 2.19%MasterCard Inc. 2.91% Toronto-Dominion Bank 2.17%Johnson Controls Inc. 2.83% Aflac Inc. 2.17%Whole Foods Market Inc. 2.73% Illinois Tool Works Inc. 2.15%Best Buy Co. Inc. 2.64% Union Pacific Corp. 2.14%Sumitomo Mitsui Financial Group Inc. 2.61%

32



Co-operators AGF Social Values Equity Fund Financial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products - 96.43 101.82 115.31 - Segment 2 Seed Money 218.00 166.34 163.42 183.77 158.50 Segment 4 Versatile Asset® Participants - - 145.10 167.05 147.33 Segment 5 Versatile Asset® II Participants - - 143.47 165.82 146.77 Segment 6 Versatile Asset® III Participants - - 143.45 165.80 146.75 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 143.48 165.81 146.75 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 142.90 165.34 146.53 Segment 11 Versatile Portfolios™ TFSA - - 142.28 164.67 146.37 Segment 12 Versatile Portfolios™ Education Savings Plan - - 113.30 129.96 114.19


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products - 611 21,593 20,468 - Segment 2 Seed Money 73,512 56,091 160,501 312,405 269,449 Segment 4 Versatile Asset® Participants - - 250,495 100,272 31,219 Segment 5 Versatile Asset® II Participants - - 171,400 64,394 16,105 Segment 6 Versatile Asset® III Participants - - 2,633 3,536 1,866 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 801,809 622,984 70,797 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 610,314 297,761 50,199 Segment 11 Versatile Portfolios™ TFSA - - 242,818 85,826 12,641 Segment 12 Versatile Portfolios™ Education Savings Plan - - 26,923 16,205 3,766

Number of units outstandingSegment 1 Group Retirement Products - 6 212 177 - Segment 2 Seed Money 337 337 982 1,700 1,700 Segment 4 Versatile Asset® Participants - - 1,726 600 212 Segment 5 Versatile Asset® II Participants - - 1,195 388 110 Segment 6 Versatile Asset® III Participants - - 18 21 13 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 5,588 3,757 482 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 4,271 1,801 343 Segment 11 Versatile Portfolios™ TFSA - - 1,707 521 86 Segment 12 Versatile Portfolios™ Education Savings Plan - - 238 125 33



33



Co-operators Acuity Social Values Global Equity Fund (note 11)Underlying fund managed by AGF Investments Inc.

Statement of Net Assets Statement of Changes in Net AssetsAs at December 31 For the periods ended December 31


Assets Net assets at beginning of year - 1,547 Investment in investment fund units - -

Increase (decrease) in net assets from operations - 102 Liabilities

Payables - - Fund of funds rebalancing (note 2) - (1,083)

Net assets - - Transactions with unitholdersUnitholders' contributions - 106 Unitholders' withdrawals - (264)

Statement of Operations Transfers (to) from other funds - (408) For the periods ended December 31 Net increase (decrease) from unitholders' transactions - (566)

2013 2012Fund of funds (note 2) ($000's) ($000's) Net assets at end of year - -


ExpensesManagement fees (note 9) - 26

Net investment income (loss) - (26)

Gains (losses) on investmentsRealized and unrealized gains (losses) - 128

Increase (decrease) in net assets from operations - 102

34



Co-operators Acuity Social Values Global Equity Fund Financial Highlights (unaudited)For the periods ended December 31




Segment 1 Group Retirement Products - - - 132.10 - Segment 2 Seed Money - - 114.75 120.13 112.98 Segment 4 Versatile Asset® Participants - - 106.15 113.84 109.54 Segment 5 Versatile Asset® II Participants - - 104.96 113.00 109.15 Segment 6 Versatile Asset® III Participants - - 104.99 113.03 109.15 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 105.00 113.03 109.15 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 104.57 112.67 108.87 Segment 11 Versatile Portfolios™ TFSA - - 104.55 112.67 108.97 Segment 12 Versatile Portfolios™ Education Savings Plan - - 108.75 116.18 111.36


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products - - - 957 - Segment 2 Seed Money - - 66,086 204,215 192,069 Segment 4 Versatile Asset® Participants - - 84,518 51,315 11,900 Segment 5 Versatile Asset® II Participants - - 72,816 45,641 14,252 Segment 6 Versatile Asset® III Participants - - 34,088 31,249 23,631 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 770,114 583,880 193,243 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 305,176 161,818 87,699 Segment 11 Versatile Portfolios™ TFSA - - 180,086 130,033 25,335 Segment 12 Versatile Portfolios™ Education Savings Plan - - 33,920 24,546 3,967

Number of units outstandingSegment 1 Group Retirement Products - - - 7 - Segment 2 Seed Money - - 576 1,700 1,700 Segment 4 Versatile Asset® Participants - - 796 451 109 Segment 5 Versatile Asset® II Participants - - 694 404 131 Segment 6 Versatile Asset® III Participants - - 325 276 216 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 7,335 5,166 1,771 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 2,918 1,436 806 Segment 11 Versatile Portfolios™ TFSA - - 1,722 1,154 232 Segment 12 Versatile Portfolios™ Education Savings Plan - - 312 211 36


Portfolio turnover rate (note 10) - - 15.00% 44.00% 47.00%

35



Co-operators Bissett Canadian Dividend Fund (note 11)Underlying fund managed by Franklin Templeton Investments



Assets Net assets at beginning of year 518 - Investment in investment fund units 10,668 519


Payables 27 1 Transactions with unitholdersUnitholders' contributions 5,364 25

Net assets 10,641 518 Unitholders' withdrawals (479) - Transfers (to) from other funds 4,316 478

Net increase (decrease) from unitholders' transactions 9,201 503 Statement of OperationsFor the periods ended December 31 Net assets at end of year 10,641 518

2013 2012Fund of funds (note 2) ($000's) ($000's)







Franklin Bissett Canadian Dividend Fund (formerly Bissett Canadian Dividend Fund)

The Toronto-Dominion Bank 5.34% ARC Resources Ltd. 3.00%Canadian Imperial Bank of Commerce 5.28% Canexus Corp. 2.96%Power Financial Corp. 5.19% BCE Inc. 2.84%Bank of Nova Scotia 4.89% Baytex Energy Corp. 2.70%Thomson Reuters Corp. 4.60% Enbridge Inc. 2.59%Royal Bank of Canada 4.44% Mullen Group Ltd. 2.30%IGM Financial Inc. 4.31% Fortis Inc. 2.13%Crescent Point Energy Corp. 4.04% Bird Construction Inc. 2.00%North West Co. Inc. 4.00% Labrador Iron Ore Royalty Corp. 1.71%Bank of Montreal 3.87% Bonavista Energy Corp. 1.66%National Bank of Canada 3.66% Rogers Communications Inc., B 1.45%TransCanada Corp. 3.65% Wajax Corp. 1.44%Russel Metals Inc. 3.51%

36



Co-operators Bissett Canadian Dividend FundFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money 125.68 106.33 - - - Segment 4 Versatile Asset® Participants 117.33 101.63 - - - Segment 5 Versatile Asset® II Participants 117.24 101.62 - - - Segment 6 Versatile Asset® III Participants 117.00 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 116.97 101.59 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 116.86 101.57 - - - Segment 11 Versatile Portfolios™ TFSA 116.88 101.58 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 117.55 101.66 - - -


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money 62,047 51,973 - - - Segment 4 Versatile Asset® Participants 1,102,891 220,884 - - - Segment 5 Versatile Asset® II Participants 768,953 10,183 - - - Segment 6 Versatile Asset® III Participants 147,891 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 5,467,909 186,465 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 2,584,033 12,578 - - - Segment 11 Versatile Portfolios™ TFSA 437,726 29,718 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 69,169 5,993 - - -

Number of units outstandingSegment 2 Seed Money 494 489 - - - Segment 4 Versatile Asset® Participants 9,400 2,173 - - - Segment 5 Versatile Asset® II Participants 6,559 100 - - - Segment 6 Versatile Asset® III Participants 1,264 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 46,745 1,835 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 22,113 124 - - - Segment 11 Versatile Portfolios™ TFSA 3,745 293 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 588 59 - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.82% 2.82% - - - Segment 5 Versatile Asset® II Participants 2.89% 2.89% - - - Segment 6 Versatile Asset® III Participants 3.08% - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 3.09% 3.09% - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.18% 3.18% - - - Segment 11 Versatile Portfolios™ TFSA 3.17% 3.16% - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.66% 2.65% - - -

Portfolio turnover rate (note 10) 25.63% 33.20% - - -

The Co-operators Bissett Canadian Dividend Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable.

37



Co-operators Ethical Balanced Fund (note 11) Underlying fund managed by NEI Investments



Assets Net assets at beginning of year 670 - Investment in investment fund units 839 672


Payables 2 2 Transactions with unitholdersUnitholders' contributions 370 1

Net assets 837 670 Unitholders' withdrawals (67) (5) Transfers (to) from other funds (165) 670

Net increase (decrease) from unitholders' transactions 138 666 Statement of OperationsFor the periods ended December 31 Net assets at end of year 837 670


Investment incomeDistribution from underlying fund - 1






NEI Ethical Balanced Fund

Government of Canada, 1.500%, 2023-06-01 7.90% Toronto-Dominion Bank, 2.171%, 2018-04-02 2.00%Cash & Short Term Notes 5.00% Pembina Pipeline Corporation 1.90%Government of Canada, Series A875, 1.250%, 2018-03-01 5.00% CI Financial 1.80%Government of Canada, 4.000%, 2041-06-01 3.50% AmerisourceBergen Corporation 1.80%Sun Life Financial 2.80% Dollarama 1.70%Royal Bank of Canada, 2.980%, 2019-05-07 2.50% DHX Media 1.70%CVS Caremark Corporation 2.30% Toronto-Dominion Bank 1.60%Canadian Imperial Bank of Commerce, 2.350%, 2017-10-18 2.20% Apple 1.60%Bank of Montreal, 2.240%, 2017-12-11 2.20% Google, Class A 1.60%Manulife Financial Corporation 2.10% LyondellBasell Industries, Class A 1.60%Element Financial Corporation 2.00% Cineplex 1.60%Citigroup 2.00% Crescent Point Energy 1.60%Bank of America Corporation 2.00%

38



Co-operators Ethical Balanced FundFinancial Highlights (unaudited)For the periods ended December 31




Segment 1 Group Retirement Products 105.88 - - - - Segment 2 Seed Money 104.16 98.83 - - - Segment 4 Versatile Asset® Participants 101.90 98.89 - - - Segment 5 Versatile Asset® II Participants 101.81 98.88 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 101.58 98.84 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 101.48 98.83 - - - Segment 11 Versatile Portfolios™ TFSA 101.50 98.83 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 102.09 98.92 - - -


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 43 - - - - Segment 2 Seed Money 26,039 24,706 - - - Segment 4 Versatile Asset® Participants 16,882 30,702 - - - Segment 5 Versatile Asset® II Participants 51,831 7,797 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 600,996 418,094 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 110,942 127,893 - - - Segment 11 Versatile Portfolios™ TFSA 27,897 58,799 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2,684 2,269 - - -

Number of units outstandingSegment 1 Group Retirement Products 1 - - - - Segment 2 Seed Money 250 250 - - - Segment 4 Versatile Asset® Participants 166 310 - - - Segment 5 Versatile Asset® II Participants 509 79 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 5,917 4,230 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 1,093 1,294 - - - Segment 11 Versatile Portfolios™ TFSA 275 595 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 26 23 - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.93% 2.93% - - - Segment 5 Versatile Asset® II Participants 3.00% 3.00% - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 3.20% 3.20% - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.29% 3.29% - - - Segment 11 Versatile Portfolios™ TFSA 3.28% 3.27% - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.77% 2.76% - - -


The Co-operators Ethical Balanced Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable.

39



Co-operators Ethical Canadian Equity Fund (note 11)Formerly Co-operators Ethical Canadian Dividend FundUnderlying fund managed by NEI Investments






Net assets 1,177 170 Unitholders' withdrawals (37) - Transfers (to) from other funds 558 155

Net increase (decrease) from unitholders' transactions 855 162 Statement of OperationsFor the periods ended December 31 Net assets at end of year 1,177 170








NEI Ethical Canadian Equity Fund (formerly NEI Ethical Canadian Dividend Fund)

Suncor Energy 6.00% Canadian Utilities, Class A 3.30%Cash & Short Term Notes 5.80% Empire Company, Class A 3.10%Canadian Tire Corporation, Class A 5.30% Gibson Energy 3.10%Toronto-Dominion Bank 5.30% Power Financial Corporation 3.10%Canadian National Railway Company 4.50% Industrial Alliance Insurance and Financial Services 3.10%Scotiabank 4.20% National Bank of Canada 2.70%Canadian Natural Resources 4.20% TELUS Corporation 2.70%ATCO, Class I 4.00% Genworth MI Canada 2.70%CGI Group, Class A 4.00% Rogers Communications, Class B 2.60%Open Text Corporation 3.60% Home Capital Group 2.50%Domtar Corporation 3.60% Toromont Industries 2.00%Ensign Resource Service Group 3.60% Barrick Gold Corporation 2.00%Metro 3.50%

40



Co-operators Ethical Canadian Equity FundFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money 132.36 105.27 - - - Segment 4 Versatile Asset® Participants 128.77 104.77 - - - Segment 5 Versatile Asset® II Participants 128.67 104.75 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 128.37 104.72 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 128.25 104.70 - - - Segment 11 Versatile Portfolios™ TFSA 128.27 104.70 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 129.01 104.80 - - -


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money 66,179 52,637 - - - Segment 4 Versatile Asset® Participants 49,941 21,115 - - - Segment 5 Versatile Asset® II Participants 82,382 4,241 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 669,447 58,561 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 236,629 24,532 - - - Segment 11 Versatile Portfolios™ TFSA 60,616 6,691 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 12,303 2,538 - - -

Number of units outstandingSegment 2 Seed Money 500 500 - - - Segment 4 Versatile Asset® Participants 388 202 - - - Segment 5 Versatile Asset® II Participants 640 40 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 5,215 559 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 1,845 234 - - - Segment 11 Versatile Portfolios™ TFSA 473 64 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 95 24 - - -



The Co-operators Ethical Canadian Equity Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable.

41



Co-operators Ethical International Equity Fund (note 11)Underlying fund managed by NEI Investments





Payables 1 - Transactions with unitholdersUnitholders' contributions 58 40

Net assets 259 102 Unitholders' withdrawals (14) - Transfers (to) from other funds 71 59



Investment incomeDistribution from underlying fund 4 -

ExpensesManagement fees (note 9) 5 -

Net investment income (loss) (1) -




NEI Ethical International Equity Fund

BNP Paribas 3.60% Denso Corporation 2.00%MISUMI Group 3.00% Industria de Diseno Textil 2.00%AIA Group 2.90% HSBC Holdings 2.00%Roche Holding 2.90% Cheung Kong (Holdings) 1.90%ORIX Corporation 2.70% MGM China Holdings 1.90%Compass Group 2.70% Daikin Industries 1.90%Sumitomo Mitsui Financial Group 2.50% CSL 1.90%Baidu, ADR 2.50% Sampo, Series A 1.80%Ryanair Holdings, ADR 2.50% WPP 1.80%Bayerische Motoren Werke (BMW) 2.50% Capgemini 1.80%Vinci 2.20% SECOM Co. 1.80%Compagnie Financière Richemont 2.10% Berkeley Group Holdings 1.70%Fuji Heavy Industries 2.00%

42



Co-operators Ethical International Equity FundFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money 131.38 103.79 - - - Segment 4 Versatile Asset® Participants 127.69 103.35 - - - Segment 5 Versatile Asset® II Participants 127.58 103.33 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 127.30 - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 127.18 103.29 - - - Segment 11 Versatile Portfolios™ TFSA 127.20 103.29 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 127.93 - - - -


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money 65,691 51,893 - - - Segment 4 Versatile Asset® Participants 469 380 - - - Segment 5 Versatile Asset® II Participants 51,494 4,188 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 58,496 - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 70,259 44,763 - - - Segment 11 Versatile Portfolios™ TFSA 12,149 761 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 250 - - - -

Number of units outstandingSegment 2 Seed Money 500 500 - - - Segment 4 Versatile Asset® Participants 4 4 - - - Segment 5 Versatile Asset® II Participants 404 41 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 460 - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 552 433 - - - Segment 11 Versatile Portfolios™ TFSA 96 7 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2 - - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 3.38% 3.37% - - - Segment 5 Versatile Asset® II Participants 3.45% 3.44% - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 3.64% - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.73% 3.72% - - - Segment 11 Versatile Portfolios™ TFSA 3.71% 3.71% - - - Segment 12 Versatile Portfolios™ Education Savings Plan 3.21% - - - -


The Co-operators Ethical International Equity Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable.

43



Co-operators Ethical Select Balanced Portfolio (note 11)Formerly Co-operators Ethical Select Canadian Balanced PortfolioUnderlying fund managed by NEI Investments



Assets Net assets at beginning of year 3,269 - Investment in investment fund units 3,798 3,277



Net assets 3,787 3,269 Unitholders' withdrawals (304) (143) Transfers (to) from other funds (203) 3,349

Net increase (decrease) from unitholders' transactions 132 3,219 Statement of OperationsFor the periods ended December 31 Net assets at end of year 3,787 3,269




Net investment income (loss) (42) 2




NEI Ethical Select Balanced Portfolio (formerly NEI Ethical Select Canadian Balanced Portfolio)

NEI Global Total Return Bond Fund, Series I 14.50% NEI Ethical Global Dividend Fund, Series I 9.20%NEI Ethical American Multi-Strategy Fund, Series I 12.10% NEI Ethical Global Equity Fund, Series I 8.90%NEI Canadian Bond Fund, Series I 11.50% NEI Ethical International Equity Fund, Series I 8.00%NEI Ethical Balanced Fund, Series I 9.90% NEI Ethical Special Equity Fund, Series I 4.90%NEI Ethical Canadian Equity Fund, Series I 9.90% Cash and Cash Equivalents 1.50%NEI Income Fund, Series I 9.60%

44



Co-operators Ethical Select Balanced PortfolioFinancial Highlights (unaudited)For the periods ended December 31




Segment 1 Group Retirement Products 105.08 - - - - Segment 2 Seed Money 115.81 101.57 - - - Segment 4 Versatile Asset® Participants 112.80 101.19 - - - Segment 5 Versatile Asset® II Participants 112.71 101.18 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 112.46 101.15 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 112.35 101.13 - - - Segment 11 Versatile Portfolios™ TFSA 112.37 101.13 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 113.01 101.22 - - -


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 987 - - - - Segment 2 Seed Money 28,953 25,391 - - - Segment 4 Versatile Asset® Participants 116,945 112,066 - - - Segment 5 Versatile Asset® II Participants 22,367 18,117 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2,110,191 1,743,462 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 776,918 770,917 - - - Segment 11 Versatile Portfolios™ TFSA 526,233 451,420 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 204,000 147,183 - - -

Number of units outstandingSegment 1 Group Retirement Products 9 - - - - Segment 2 Seed Money 250 250 - - - Segment 4 Versatile Asset® Participants 1,037 1,107 - - - Segment 5 Versatile Asset® II Participants 198 179 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 18,764 17,237 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 6,915 7,623 - - - Segment 11 Versatile Portfolios™ TFSA 4,683 4,464 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 1,805 1,454 - - -



The Co-operators Ethical Select Balanced Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable.

45



Co-operators Ethical Select Growth Portfolio (note 11)Formerly Co-operators Ethical Select Canadian Growth PortfolioUnderlying fund managed by NEI Investments



Assets Net assets at beginning of year 1,043 - Investment in investment fund units 1,410 1,046



Net assets 1,406 1,043 Unitholders' withdrawals (16) (7) Transfers (to) from other funds 18 1,011

Net increase (decrease) from unitholders' transactions 181 1,020 Statement of OperationsFor the periods ended December 31 Net assets at end of year 1,406 1,043


Investment incomeDistribution from underlying fund 4 -






NEI Ethical Select Canadian Growth Portfolio (formerly NEI Ethical Select Canadian Growth Portfolio)

NEI Ethical American Multi-Strategy Fund, Series I 15.00% NEI Ethical International Equity Fund, Series I 9.10%NEI Ethical Canadian Equity Fund, Series I 13.60% NEI Ethical Special Equity Fund, Series I 5.90%NEI Ethical Global Dividend Fund, Series I 12.10% NEI Income Fund, Series I 4.80%NEI Ethical Global Equity Fund, Series I 11.90% NEI Canadian Bond Fund, Series I 4.80%NEI Ethical Balanced Fund, Series I 11.80% Cash and Cash Equivalents 1.40%NEI Global Total Return Bond Fund, Series I 9.60%

46



Co-operators Ethical Select Growth PortfolioFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money 121.03 102.06 - - - Segment 4 Versatile Asset® Participants 117.66 101.65 - - - Segment 5 Versatile Asset® II Participants 117.56 101.64 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 117.30 101.61 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 117.19 101.59 - - - Segment 11 Versatile Portfolios™ TFSA 117.21 101.60 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 117.88 101.68 - - -


2012 2012 2011 2010 2009Net assets

Segment 2 Seed Money 60,515 51,028 - - - Segment 4 Versatile Asset® Participants 112,349 92,050 - - - Segment 5 Versatile Asset® II Participants 39,852 31,248 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 946,047 691,173 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 157,638 117,747 - - - Segment 11 Versatile Portfolios™ TFSA 70,341 48,497 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 19,240 11,445 - - -

Number of units outstandingSegment 2 Seed Money 500 500 - - - Segment 4 Versatile Asset® Participants 955 906 - - - Segment 5 Versatile Asset® II Participants 339 307 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 8,065 6,802 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 1,345 1,159 - - - Segment 11 Versatile Portfolios™ TFSA 600 477 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 163 113 - - -



The Co-operators Ethical Select Growth Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable.

47



Co-operators Ethical Select Conservative Portfolio (note 11)Underlying fund managed by NEI Investments




Increase (decrease) in net assets from operations 11 - Liabilities

Payables 1 - Transactions with unitholdersUnitholders' contributions 142 5

Net assets 329 65 Unitholders' withdrawals (50) - Transfers (to) from other funds 161 60




ExpensesManagement fees (note 9) 6 -


Gains (losses) on investmentsRealized and unrealized gains (losses) 10 (1)

Increase (decrease) in net assets from operations 11 -


NEI Ethical Select Conservative Portfolio

NEI Canadian Bond Fund, Series I 24.10% NEI Ethical American Multi-Strategy Fund, Series I 7.30%NEI Income Fund, Series I 17.40% NEI Ethical International Equity Fund, Series I 6.20%NEI Global Total Return Bond Fund, Series I 13.50% NEI Ethical Global Dividend Fund, Series I 5.20%NEI Ethical Balanced Fund, Series I 10.20% NEI Ethical Global Equity Fund, Series I 5.10%NEI Ethical Canadian Equity Fund, Series I 10.20% Cash and Cash Equivalents 0.80%

48



Co-operators Ethical Select Conservative PortfolioFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money 108.49 101.00 - - - Segment 5 Versatile Asset® II Participants 105.59 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 105.35 - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 105.25 100.57 - - - Segment 11 Versatile Portfolios™ TFSA 105.27 - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 105.87 100.65 - - -


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money 54,245 50,499 - - - Segment 5 Versatile Asset® II Participants 86,461 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 129,896 - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 29,800 2,545 - - - Segment 11 Versatile Portfolios™ TFSA 22,652 - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 5,997 11,915 - - -

Number of units outstandingSegment 2 Seed Money 500 500 - - - Segment 5 Versatile Asset® II Participants 819 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 1,233 - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 283 25 - - - Segment 11 Versatile Portfolios™ TFSA 215 - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 57 118 - - -

Management expense ratio (note 9)Segment 5 Versatile Asset® II Participants 2.93% - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 3.20% - - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.29% 3.29% - - - Segment 11 Versatile Portfolios™ TFSA 3.28% - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.77% 2.76% - - -


The Co-operators Ethical Select Conservative Portfolio only came into existence in 2012 and therefore comparative information for prior years isunavailable.

49



Co-operators Ethical Select Income Portfolio (note 11)Underlying fund managed by NEI Investments





Payables 4 - Transactions with unitholdersUnitholders' contributions 1,363 -

Net assets 1,351 117 Unitholders' withdrawals (52) - Transfers (to) from other funds (86) 116

Net increase (decrease) from unitholders' transactions 1,225 116 Statement of OperationsFor the periods ended December 31 Net assets at end of year 1,351 117





Gains (losses) on investmentsRealized and unrealized gains (losses) 12 -



NEI Ethical Select Income Portfolio

NEI Canadian Bond Fund, Series I 39.60% NEI Ethical Global Dividend Fund, Series I 13.20%NEI Income Fund, Series I 21.80% NEI Ethical Canadian Equity Fund, Series I 7.00%NEI Global Total Return Bond Fund, Series I 17.90% Cash and Cash Equivalents 0.50%

50



Co-operators Ethical Select Income PortfolioFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money 103.59 101.12 - - - Segment 4 Versatile Asset® Participants 100.90 100.74 - - - Segment 5 Versatile Asset® II Participants 100.82 100.73 - - - Segment 6 Versatile Asset® III Participants 100.61 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 100.59 100.70 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 100.49 - - - - Segment 11 Versatile Portfolios™ TFSA 100.51 - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 101.09 - - - -


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money 51,793 50,559 - - - Segment 4 Versatile Asset® Participants 11,294 11,277 - - - Segment 5 Versatile Asset® II Participants 45,899 45,861 - - - Segment 6 Versatile Asset® III Participants 995 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 26,899 9,146 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 1,194,416 - - - - Segment 11 Versatile Portfolios™ TFSA 9,789 - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 10,063 - - - -

Number of units outstandingSegment 2 Seed Money 500 500 - - - Segment 4 Versatile Asset® Participants 112 112 - - - Segment 5 Versatile Asset® II Participants 455 455 - - - Segment 6 Versatile Asset® III Participants 10 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 267 91 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 11,885 - - - - Segment 11 Versatile Portfolios™ TFSA 97 - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 100 - - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.88% 2.87% - - - Segment 5 Versatile Asset® II Participants 2.95% 2.94% - - - Segment 6 Versatile Asset® III Participants 3.13% - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 3.15% 3.21% - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.24% - - - - Segment 11 Versatile Portfolios™ TFSA 3.22% - - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.72% - - - -


The Co-operators Ethical Select Income Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable.

51



Co-operators Fidelity Canadian Bond FundUnderlying fund managed by Fidelity Investments Canada ULC



Assets Net assets at beginning of year 23,785 36,426 Investment in investment fund units 25,281 23,845

Increase (decrease) in net assets from operations (886) 786 Liabilities

Payables 65 60 Fund of funds rebalancing (note 2) 1,304 (16,829)

Net assets 25,216 23,785 Transactions with unitholdersUnitholders' contributions 5,591 8,019 Unitholders' withdrawals (4,043) (5,512)

Statement of Operations Transfers (to) from other funds (535) 895 For the years ended December 31 Net increase (decrease) from unitholders' transactions 1,013 3,402

2013 2012Fund of funds (note 2) ($000's) ($000's) Net assets at end of year 25,216 23,785

Investment incomeDistribution from underlying fund 866 1,292

ExpensesManagement fees (note 9) 740 1,157 Audit, legal and other fees (note 9) 2 6

742 1,163


Gains (losses) on investmentsRealized and unrealized gains (losses) (1,010) 657

Increase (decrease) in net assets from operations (886) 786


Fidelity Canadian Bond Fund

Canada Govt 1.5% 9/01/17 3.70% Quebec Province 4.25% 12/01/43 0.89%Ontario Prov 2.85% 6/02/23 3.21% Royal Bank of Canada 2.26% 3/18 0.87%Canada Govt 2.5% 06/01/24 2.36% Bank of Montreal CD+40 3/15 0.84%Canada Housing 2.05% 6/17 2.34% Can Imperial Bank 4.11/VAR 4/20 0.79%Quebec Province 5% 12/01/41 2.08% Bank of Montreal 2.24% 12/11/17 0.74%Ontario Prov 4.2% 6/2/20 1.71% Ontario Province 4.65% 6/02/41 0.71%Canada Housing 2.65% 3/22 1.55% Quebec Province 4.5% 12/01/20 0.64%Canada Housing 3MC+5 9/15/16 1.42% Ontario Prov 1.9% 9/08/17 0.62%Quebec Prov 4.25% 12/01/21 1.33% Toronto Dom 5.763/VAR 12/2106 0.61%Royal Bank of Canada 2.364% 9/21/17 1.10% Ontario Prov 3CDOR+15 0.60%Canada Housing 2.35% 9/15/23 1.07% Prov of New Brunswick 3.55% 6/3/43 0.58%Ontario Prov 3.5% 6/02/43 1.01% Canada Housing 3.8 6/15/21 0.57%Quebec Province 3% 9/01/23 0.93%

52



Co-operators Fidelity Canadian Bond FundFinancial Highlights (unaudited)For the years ended December 31




Segment 2 Seed Money - - - 147.41 137.28 Segment 4 Versatile Asset® Participants 135.60 140.36 137.83 129.36 123.63 Segment 5 Versatile Asset® II Participants 131.27 136.07 134.14 126.27 121.01 Segment 6 Versatile Asset® III Participants 128.60 133.57 132.39 124.87 119.99 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 129.50 134.64 132.17 124.55 119.57 Segment 9 Versatile Portfolios™ Participants (No-Load) 131.28 136.52 135.65 128.18 123.45 Segment 11 Versatile Portfolios™ TFSA 113.57 118.14 116.45 109.93 105.69 Segment 12 Versatile Portfolios™ Education Savings Plan 113.67 117.71 115.56 108.56 103.86


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money - - - 737 686 Segment 4 Versatile Asset® Participants 1,990,307 1,990,401 3,265,705 3,173,630 2,507,693 Segment 5 Versatile Asset® II Participants 854,459 882,704 1,556,314 1,707,524 1,436,424 Segment 6 Versatile Asset® III Participants 82,472 68,142 129,221 133,054 100,117 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 14,496,119 14,080,994 21,498,156 18,984,039 15,831,629 Segment 9 Versatile Portfolios™ Participants (No-Load) 6,116,935 5,533,560 8,622,097 8,122,711 6,071,276 Segment 11 Versatile Portfolios™ TFSA 1,429,440 1,028,096 1,063,690 645,938 222,867 Segment 12 Versatile Portfolios™ Education Savings Plan 246,389 200,733 290,798 177,600 35,422

Number of units outstandingSegment 2 Seed Money - - - 5 5 Segment 4 Versatile Asset® Participants 14,677 14,181 23,694 24,534 20,284 Segment 5 Versatile Asset® II Participants 6,509 6,487 11,602 13,523 11,870 Segment 6 Versatile Asset® III Participants 641 510 976 1,066 834 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 111,937 104,581 162,655 152,421 132,404 Segment 9 Versatile Portfolios™ Participants (No-Load) 46,595 40,532 63,563 63,369 49,179 Segment 11 Versatile Portfolios™ TFSA 12,587 8,702 9,135 5,876 2,109 Segment 12 Versatile Portfolios™ Education Savings Plan 2,168 1,705 2,516 1,636 341



53



Co-operators Fidelity Global FundUnderlying fund managed by Fidelity Investments Canada ULC




Increase (decrease) in net assets from operations 2,450 1,670 Liabilities

Payables 30 22 Fund of funds rebalancing (note 2) (619) (17,537)

Net assets 10,894 8,560 Transactions with unitholdersUnitholders' contributions 1,465 3,366 Unitholders' withdrawals (683) (2,823)

Statement of Operations Transfers (to) from other funds (279) 183 For the years ended December 31 Net increase (decrease) from unitholders' transactions 503 726



ExpensesManagement fees (note 9) 303 711 Audit, legal and other fees (note 9) 1 4

304 715


Gains (losses) on investmentsRealized and unrealized gains (losses) 2,596 2,164



Fidelity Global Fund

Apple Inc 3.76% Ebay Inc 1.29%Google Inc A 3.49% Capital One Financial Corp 1.23%Gilead Sciences Inc 1.91% United Parcel Service Inc Cl B 1.23%Qualcomm Inc 1.85% Viacomm Inc Cl B 1.17%Philip Morris Intl Inc 1.74% CVS Caremark Corp 1.14%Home Depot Inc 1.66% Honeywell Intl Inc 1.06%Pepsico Inc 1.61% Merck & Co Inc 0.97%TJX Companies Inc 1.58% McDonalds Corp 0.90%Oracle Corp 1.44% Fedex Corp 0.89%Ashland Inc 1.43% Occidental Petroleum Corp 0.89%JPMorgan Chase & Co 1.41% Medtronic Inc 0.88%Express Scripts Hldg Co 1.39% Apache Corp 0.84%United Technologies Corp 1.38%

54



Co-operators Fidelity Global Fund Financial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 96.02 74.78 67.73 74.26 71.60 Segment 2 Seed Money - - - 113.84 108.38 Segment 3 Group Retirement - Investment Mgmt Only 120.31 91.88 81.88 88.63 84.74 Segment 4 Versatile Asset® Participants 120.06 93.48 86.68 95.06 92.08 Segment 5 Versatile Asset® II Participants 121.33 94.48 86.45 95.17 92.51 Segment 6 Versatile Asset® III Participants 116.72 90.59 82.53 90.99 88.51 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 118.63 92.39 84.82 93.56 91.06 Segment 9 Versatile Portfolios™ Participants (No-Load) 125.31 97.84 89.78 99.22 96.79 Segment 11 Versatile Portfolios™ TFSA 155.51 121.54 111.03 122.60 119.50 Segment 12 Versatile Portfolios™ Education Savings Plan 152.36 118.37 107.53 118.15 114.56


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 426,831 285,204 273,534 333,525 274,034 Segment 2 Seed Money - - - 569 542 Segment 3 Group Retirement - Investment Mgmt Only 528,745 372,453 153,463 146,517 123,374 Segment 4 Versatile Asset® Participants 1,033,780 794,962 2,237,700 2,496,270 2,225,402 Segment 5 Versatile Asset® II Participants 975,979 829,315 1,618,286 1,837,115 1,600,843 Segment 6 Versatile Asset® III Participants 54,437 40,210 136,439 139,598 124,174 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 6,034,918 4,899,733 14,339,209 14,092,420 11,595,651 Segment 9 Versatile Portfolios™ Participants (No-Load) 1,332,877 1,030,785 4,088,475 4,222,235 3,516,529 Segment 11 Versatile Portfolios™ TFSA 310,215 189,336 612,593 404,032 153,541 Segment 12 Versatile Portfolios™ Education Savings Plan 196,486 118,165 241,385 169,789 33,272

Number of units outstandingSegment 1 Group Retirement Products 4,445 3,814 4,039 4,491 3,827 Segment 2 Seed Money - - - 5 5 Segment 3 Group Retirement - Investment Mgmt Only 4,395 4,054 1,874 1,653 1,456 Segment 4 Versatile Asset® Participants 8,611 8,504 25,815 26,260 24,169 Segment 5 Versatile Asset® II Participants 8,044 8,778 18,720 19,303 17,305 Segment 6 Versatile Asset® III Participants 466 444 1,653 1,534 1,403 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 50,870 53,035 169,055 150,630 127,343 Segment 9 Versatile Portfolios™ Participants (No-Load) 10,637 10,536 45,539 42,556 36,333 Segment 11 Versatile Portfolios™ TFSA 1,995 1,558 5,517 3,295 1,285 Segment 12 Versatile Portfolios™ Education Savings Plan 1,290 998 2,245 1,437 290



55



Co-operators Fidelity True North® FundUnderlying fund managed by Fidelity Investments Canada ULC





Payables 97 74 Fund of funds rebalancing (note 2) (1,302) (3,623)


Statement of Operations Transfers (to) from other funds 103 (969) For the years ended December 31 Net increase (decrease) from unitholders' transactions 2,493 547


Investment incomeDistribution from underlying fund 1,017 533


993 967

Net investment income (loss) 24 (434)




Fidelity True North® Fund

Toronto-Dominion Bank 7.86% Enbridge Inc 1.97%Alimentation Couch Cl B Sub Vtg 4.32% Rogers Comm Inc Cl B Non Vtg 1.68%Royal Bank of Canada 4.32% Bombardier Inc Cl B Sub Vtg 1.67%Shoppers Drug Mart Corp 4.13% Tourmaline Oil Corp 1.66%Manulife Financial Corp (Cana) 3.78% Metro Inc 1.58%Suncor Energy Inc 3.24% Fairfax Finl Hldgs Ltd Sub Vtg 1.56%Canadian Natl Railway Co 3.21% Keyera Corp 1.46%CGI Groupe Inc Cl A Sub Vtg 3.20% Google Inc A 1.39%Power Corp of Canada Sub Vtg 3.08% SNC-Lavalin Grp Inc 1.29%Valeant Pharmaceuticals Intl 2.78% MacDonald Dettw & Asc Ltd 1.27%Canadian Natl Resources Ltd 2.17% Loblaw Cos Ltd 1.21%Open Text Corporation 2.07% Cenovus Energy Inc 1.20%Gildan Activewear Inc 1.99%

56



Co-operators Fidelity True North® FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 123.61 101.50 94.21 102.17 91.86 Segment 2 Seed Money - - - 219.68 192.63 Segment 3 Group Retirement - Investment Mgmt Only 114.19 92.35 84.50 91.25 80.40 Segment 4 Versatile Asset® Participants 224.62 184.53 171.20 187.33 167.32 Segment 5 Versatile Asset® II Participants 220.17 181.38 169.08 185.79 166.35 Segment 6 Versatile Asset® III Participants 204.24 168.36 157.86 173.64 155.77 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 216.59 178.58 166.76 183.46 164.59 Segment 9 Versatile Portfolios™ Participants (No-Load) 206.25 169.97 158.50 174.36 156.29 Segment 10 Group Retirement Income Product 125.94 - - - - Segment 11 Versatile Portfolios™ TFSA 173.74 143.44 133.97 147.59 132.55 Segment 12 Versatile Portfolios™ Education Savings Plan 143.97 118.32 110.07 120.77 108.00


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 4,715,004 3,463,822 2,990,698 3,003,573 2,372,585 Segment 2 Seed Money - - - 1,098 963 Segment 3 Group Retirement - Investment Mgmt Only 1,263,308 935,907 370,568 348,855 264,821 Segment 4 Versatile Asset® Participants 3,100,677 2,527,482 2,971,197 3,291,747 2,810,752 Segment 5 Versatile Asset® II Participants 2,439,915 1,905,911 2,206,866 2,390,710 2,088,130 Segment 6 Versatile Asset® III Participants 293,092 255,320 263,141 273,439 251,391 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 18,715,835 15,309,302 15,905,160 16,184,519 13,077,868 Segment 9 Versatile Portfolios™ Participants (No-Load) 5,274,442 4,198,853 4,766,158 4,762,070 3,972,257 Segment 10 Group Retirement Income Product 6,007 - - - - Segment 11 Versatile Portfolios™ TFSA 1,158,770 736,554 735,488 528,235 214,257 Segment 12 Versatile Portfolios™ Education Savings Plan 540,313 368,223 283,643 213,701 45,296

Number of units outstandingSegment 1 Group Retirement Products 38,143 34,127 31,744 29,399 25,828 Segment 2 Seed Money - - - 5 5 Segment 3 Group Retirement - Investment Mgmt Only 11,064 10,135 4,385 3,823 3,294 Segment 4 Versatile Asset® Participants 13,804 13,697 17,355 17,572 16,799 Segment 5 Versatile Asset® II Participants 11,082 10,508 13,052 12,868 12,552 Segment 6 Versatile Asset® III Participants 1,435 1,516 1,667 1,575 1,614 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 86,411 85,729 95,378 88,220 79,456 Segment 9 Versatile Portfolios™ Participants (No-Load) 25,573 24,703 30,070 27,312 25,416 Segment 10 Group Retirement Income Product 48 - - - - Segment 11 Versatile Portfolios™ TFSA 6,670 5,135 5,490 3,579 1,616 Segment 12 Versatile Portfolios™ Education Savings Plan 3,753 3,112 2,577 1,770 419



57



Co-operators Mawer Balanced FundUnderlying fund managed by Mawer Investment Management Ltd.



Assets Net assets at beginning of year 810 103 Investment in investment fund units 10,553 812


Payables 25 2 Transactions with unitholdersUnitholders' contributions 3,711 13

Net assets 10,528 810 Unitholders' withdrawals (317) (2) Transfers (to) from other funds 5,345 664

Net increase (decrease) from unitholders' transactions 8,739 675 Statement of OperationsFor the years ended December 31 Net assets at end of year 10,528 810








Mawer Balanced Fund (formerly Mawer Canadian Balanced Retirement Savings Fund)

Mawer Canadian Bond Fund Class O 30.57% Canadian Treasury Bill Jan 16, 2014 0.94%Mawer US Equity Fund Class O 20.84% Canadian Treasury Bill Feb 27, 2014 0.51%Mawer International Equity Fund Class O 15.54% Mawer Canadian Money Market Fund Class O 0.20%Mawer Canadian Equity Fund Class O 13.08% Canadian Treasury Bill Mar 27, 2014 0.18%Mawer Global Small Cap Fund Class O 9.09% Canadian Treasury Bill Mar 13, 2014 0.03%Mawer New Canada Fund Class O 6.06% Canadian Treasury Bill Jan 09, 2014 0.01%Canadian Treasury Bill Feb 13, 2014 2.94% Canadian Dollar 0.01%

58



Co-operators Mawer Balanced FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 112.82 109.02 - - - Segment 2 Seed Money 139.29 115.46 - - - Segment 4 Versatile Asset® Participants 121.44 103.01 - - - Segment 5 Versatile Asset® II Participants 121.34 103.00 - - - Segment 6 Versatile Asset® III Participants 121.09 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 121.06 102.96 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 120.93 102.94 - - - Segment 10 Co-operators Group Retirement Income Product 125.48 - - - - Segment 11 Versatile Portfolios™ TFSA 120.95 102.94 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 121.67 103.05 - - -


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 333,157 2,748 - - - Segment 2 Seed Money 139,288 115,458 102,623 - - Segment 4 Versatile Asset® Participants 859,181 8,573 - - - Segment 5 Versatile Asset® II Participants 489,684 14,014 - - - Segment 6 Versatile Asset® III Participants 8,211 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 6,658,894 565,525 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 1,491,938 83,503 - - - Segment 10 Co-operators Group Retirement Income Product 23,122 - - - - Segment 11 Versatile Portfolios™ TFSA 446,350 20,033 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 78,657 552 - - -

Number of units outstandingSegment 1 Group Retirement Products 2,953 25 - - - Segment 2 Seed Money 1,000 1,000 1,000 - - Segment 4 Versatile Asset® Participants 7,075 83 - - - Segment 5 Versatile Asset® II Participants 4,036 136 - - - Segment 6 Versatile Asset® III Participants 68 - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 55,006 5,493 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 12,337 811 - - - Segment 10 Co-operators Group Retirement Income Product 184 - - - - Segment 11 Versatile Portfolios™ TFSA 3,690 195 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 646 5 - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.71% 2.71% - - - Segment 5 Versatile Asset® II Participants 2.78% 2.78% - - - Segment 6 Versatile Asset® III Participants 2.96% - - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2.98% 2.98% - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.07% 3.07% - - - Segment 11 Versatile Portfolios™ TFSA 3.06% 3.05% - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.55% 2.54% - - -


The Co-operators Mawer Balanced Fund only came into existence in 2011 and therefore comparative information for prior years is unavailable.

59



Co-operators Mawer Canadian Equity Fund (note 11)Formerly Co-operators Mawer Equity Large Cap FundUnderlying fund managed by Mawer Investment Management Ltd.



Assets Net assets at beginning of year 28,487 98 Investment in investment fund units 38,794 28,560


Payables 103 73 Fund of funds rebalancing (note 2) (2,897) 25,052


Statement of Operations Transfers (to) from other funds 1,928 1,438 For the years ended December 31 Net increase (decrease) from unitholders' transactions 6,011 2,157



ExpensesManagement fees (note 9) 1,038 113 Audit, legal and other fees (note 9) 2 -

1,040 113


Gains (losses) on investmentsRealized and unrealized gains (losses) 7,266 657



Mawer Canadian Equity Fund

Toronto-Dominion Bank 4.99% Manulife Financial Corp 2.76%Constellation Software Inc 4.97% First Capital Realty Inc 2.62%Bank of Nova Scotia 4.66% Rogers Communications Inc 2.57%Royal Bank of Canada 4.34% ONEX Corp 2.57%Canadian National Railway Co 4.27% Valeant Pharmaceuticals International Inc 2.55%Brookfield Asset Management Inc CL A 3.92% Enbridge Inc 2.31%Canadian Treasury Bill Feb 13, 2014 3.87% Bank of Montreal 2.25%TELUS Corp 3.43% Aimia Inc 2.07%Power Corp of Canada 3.19% Cogeco Cable Inc 2.03%Industrial Alliance Insurance & Financial Services Inc 2.98% Loblaw Cos Ltd 1.83%Cineplex Inc. 2.96% Canadian Pacific Railway Ltd 1.73%CI Financial Corp 2.87% Toromont Industries Ltd 1.69%Saputo Inc 2.77%

60



Co-operators Mawer Canadian Equity FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 117.83 106.65 93.91 - - Segment 2 Seed Money 140.84 111.54 98.18 - - Segment 4 Versatile Asset® Participants 128.04 103.91 - - - Segment 5 Versatile Asset® II Participants 127.75 103.83 - - - Segment 6 Versatile Asset® III Participants 127.39 103.83 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 127.55 103.87 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 127.38 103.84 - - - Segment 11 Versatile Portfolios™ TFSA 127.40 103.86 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 128.12 103.95 - - -


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 143,525 4,120 208 - - Segment 2 Seed Money 140,843 111,537 98,177 - - Segment 4 Versatile Asset® Participants 2,999,722 2,372,973 - - - Segment 5 Versatile Asset® II Participants 2,324,755 1,836,047 - - - Segment 6 Versatile Asset® III Participants 220,822 143,774 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 23,745,091 17,539,277 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 6,789,690 5,120,135 - - - Segment 11 Versatile Portfolios™ TFSA 1,644,756 936,335 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 681,937 422,773 - - -

Number of units outstandingSegment 1 Group Retirement Products 1,218 39 2 - - Segment 2 Seed Money 1,000 1,000 1,000 - - Segment 4 Versatile Asset® Participants 23,429 22,837 - - - Segment 5 Versatile Asset® II Participants 18,197 17,683 - - - Segment 6 Versatile Asset® III Participants 1,733 1,385 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 186,167 168,854 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 53,305 49,306 - - - Segment 11 Versatile Portfolios™ TFSA 12,911 9,015 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 5,323 4,067 - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.71% 2.71% 2.49% - - Segment 5 Versatile Asset® II Participants 2.78% 2.78% 0.37% - - Segment 6 Versatile Asset® III Participants 2.96% 2.96% - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2.98% 2.98% - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.07% 3.07% - - - Segment 11 Versatile Portfolios™ TFSA 3.06% 3.06% - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.55% 2.55% - - -


The Co-operators Mawer Canadian Equity Fund only came into existence in 2011 and therefore comparative information for prior years is unavailable.

61



Co-operators Mawer International Equity Fund (note 11)Formerly Co-operators Mawer World Investment FundUnderlying fund managed by Mawer Investment Management Ltd.



Assets Net assets at beginning of year 30,801 97 Investment in investment fund units 40,159 30,882


Payables 109 81 Fund of funds rebalancing (note 2) (2,893) 28,542


Statement of Operations Transfers (to) from other funds 1,753 (361) For the years ended December 31 Net increase (decrease) from unitholders' transactions 5,233 363



ExpensesManagement fees (note 9) 1,113 127 Audit, legal and other fees (note 9) 2 -

1,115 127





Mawer International Equity Fund (formerly Mawer World Investment Fund)

BASF SE 3.18% Gazit-Globe Ltd. 2.05%Roche Holding AG 3.16% Getinge AB 2.05%Deutsche Boerse AG 3.06% Anheuser-Busch InBev NV 2.04%Rolls-Royce Holdings PLC 2.73% Canadian Treasury Bill Feb 13, 2014 1.98%Reckitt Benckiser Group 2.44% Smith & Nephew PLC 1.97%AON PLC 2.38% BMW AG Preference Share 1.97%Halma PLC 2.35% DCC PLC 1.85%DBS Group Holdings Ltd 2.25% GlaxoSmithKline PLC 1.85%Kerry Group PLC 2.25% Melrose Industries PLC 1.82%Jardine Matheson Holdings Ltd. 2.23% LVMH Moet Hennessy Louis Vuitton 1.77%Novartis AG ADR 2.22% Aalberts Industries NV 1.77%Meda AB 2.09% Standard Chartered PLC 1.69%Catlin Group Ltd 2.07%

62



Co-operators Mawer International Equity FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 115.78 109.74 91.25 - - Segment 2 Seed Money 144.64 116.89 96.81 - - Segment 4 Versatile Asset® Participants 127.40 105.51 - - - Segment 5 Versatile Asset® II Participants 127.17 105.48 - - - Segment 6 Versatile Asset® III Participants 126.80 105.45 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 126.95 105.46 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 126.78 105.44 - - - Segment 11 Versatile Portfolios™ TFSA 126.79 105.44 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 127.48 105.51 - - -


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 106,803 2,746 201 - - Segment 2 Seed Money 144,643 116,886 96,811 - - Segment 4 Versatile Asset® Participants 3,378,425 2,550,897 - - - Segment 5 Versatile Asset® II Participants 2,390,901 1,866,025 - - - Segment 6 Versatile Asset® III Participants 235,431 151,555 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 24,523,708 19,159,441 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 6,845,808 5,459,379 - - - Segment 11 Versatile Portfolios™ TFSA 1,680,229 1,009,097 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 744,447 485,148 - - -

Number of units outstandingSegment 1 Group Retirement Products 922 25 2 - - Segment 2 Seed Money 1,000 1,000 1,000 - - Segment 4 Versatile Asset® Participants 26,518 24,176 - - - Segment 5 Versatile Asset® II Participants 18,800 17,690 - - - Segment 6 Versatile Asset® III Participants 1,857 1,437 - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 193,183 181,678 - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 53,999 51,777 - - - Segment 11 Versatile Portfolios™ TFSA 13,252 9,570 - - - Segment 12 Versatile Portfolios™ Education Savings Plan 5,840 4,598 - - -

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants 2.88% 2.88% - - - Segment 5 Versatile Asset® II Participants 2.95% 2.95% - - - Segment 6 Versatile Asset® III Participants 3.13% 3.13% - - - Segment 8 Versatile Portfolios™ Participants (Back-end Load) 3.15% 3.15% - - - Segment 9 Versatile Portfolios™ Participants (No-Load) 3.24% 3.24% - - - Segment 11 Versatile Portfolios™ TFSA 3.22% 3.22% - - - Segment 12 Versatile Portfolios™ Education Savings Plan 2.72% 2.72% - - -


The Co-operators Mawer International Equity Fund only came into existence in 2011 and therefore comparative information for prior years is unavailable.

63



Co-operators Trimark Canadian Bond Fund (note 11)Underlying fund managed by Invesco Trimark Ltd.






Net assets - - Transactions with unitholdersUnitholders' contributions - 5,261 Unitholders' withdrawals - (4,299)

Statement of Operations Transfers (to) from other funds - (2,081) For the periods ended December 31 Net increase (decrease) from unitholders' transactions - (1,119)


Investment incomeDistribution from underlying fund - 1,188

ExpensesManagement fees (note 9) - 992 Audit, legal and other fees (note 9) - 5

- 997

Net investment income (loss) - 191



64



Co-operators Trimark Canadian Bond FundFinancial Highlights (unaudited)For the periods ended December 31




Segment 2 Seed Money - - - 145.48 135.69 Segment 4 Versatile Asset® Participants - - 131.77 126.15 120.09 Segment 5 Versatile Asset® II Participants - - 128.44 123.29 117.74 Segment 6 Versatile Asset® III Participants - - 127.00 122.08 116.82 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 126.37 121.43 116.16 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 129.55 124.78 119.78 Segment 11 Versatile Portfolios™ TFSA - - 115.24 110.89 106.23 Segment 12 Versatile Portfolios™ Education Savings Plan - - 115.35 110.44 105.27


2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money - - - 727 678 Segment 4 Versatile Asset® Participants - - 2,921,850 2,840,066 2,387,661 Segment 5 Versatile Asset® II Participants - - 1,609,078 1,702,848 1,401,583 Segment 6 Versatile Asset® III Participants - - 123,284 127,523 96,951 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 20,771,235 18,761,326 15,697,898 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 8,327,144 7,873,252 5,892,043 Segment 11 Versatile Portfolios™ TFSA - - 1,040,679 629,234 211,324 Segment 12 Versatile Portfolios™ Education Savings Plan - - 283,419 176,829 35,197

Number of units outstandingSegment 2 Seed Money - - - 5 5 Segment 4 Versatile Asset® Participants - - 22,173 22,513 19,883 Segment 5 Versatile Asset® II Participants - - 12,528 13,812 11,904 Segment 6 Versatile Asset® III Participants - - 971 1,045 830 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 164,363 154,499 135,140 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 64,280 63,096 49,190 Segment 11 Versatile Portfolios™ TFSA - - 9,031 5,674 1,989 Segment 12 Versatile Portfolios™ Education Savings Plan - - 2,457 1,601 334



65



Co-operators Trimark Canadian Class Fund (note 11)Underlying fund managed by Invesco Trimark Ltd.




Increase (decrease) in net assets from operations - 2,005 Liabilities


Net assets - - Transactions with unitholdersUnitholders' contributions - 2,725 Unitholders' withdrawals - (2,831)

Statement of Operations Transfers (to) from other funds - (1,976) For the periods ended December 31 Net increase (decrease) from unitholders' transactions - (2,082)


Investment incomeDistribution from underlying fund - 1,505


- 862


Gains (losses) on investmentsRealized and unrealized gains (losses) - 1,362

Increase (decrease) in net assets from operations - 2,005

66



Co-operators Trimark Canadian Class FundFinancial Highlights (unaudited)For the periods ended December 31






2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money - - - 830 738 Segment 4 Versatile Asset® Participants - - 2,769,337 3,136,650 2,792,668 Segment 5 Versatile Asset® II Participants - - 1,983,179 2,249,033 1,986,454 Segment 6 Versatile Asset® III Participants - - 150,267 160,978 143,574 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 18,144,093 17,674,986 14,731,342 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 6,067,671 6,189,534 5,053,291 Segment 11 Versatile Portfolios™ TFSA - - 800,408 518,076 192,439 Segment 12 Versatile Portfolios™ Education Savings Plan - - 282,390 194,709 39,147

Number of units outstandingSegment 2 Seed Money - - - 5 5 Segment 4 Versatile Asset® Participants - - 22,551 22,201 21,847 Segment 5 Versatile Asset® II Participants - - 16,340 16,033 15,606 Segment 6 Versatile Asset® III Participants - - 1,296 1,202 1,180 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 151,037 127,107 116,556 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 55,502 48,707 43,625 Segment 11 Versatile Portfolios™ TFSA - - 7,186 4,013 1,638 Segment 12 Versatile Portfolios™ Education Savings Plan - - 2,777 1,660 368



67



Co-operators Trimark Global Fundamental Equity Fund (note 11)Underlying fund managed by Invesco Trimark Ltd.




Increase (decrease) in net assets from operations - 1,733 Liabilities


Net assets - - Transactions with unitholdersUnitholders' contributions - 986 Unitholders' withdrawals - (1,328)

Statement of Operations Transfers (to) from other funds - (997) For the periods ended December 31 Net increase (decrease) from unitholders' transactions - (1,339)




- 491


Gains (losses) on investmentsRealized and unrealized gains (losses) - 2,224

Increase (decrease) in net assets from operations - 1,733

68



Co-operators Trimark Global Fundamental Equity FundFinancial Highlights (unaudited)For the periods ended December 31






2013 2012 2011 2010 2009Net assets

Segment 2 Seed Money - - - 521 493 Segment 4 Versatile Asset® Participants - - 1,709,173 1,949,510 1,807,703 Segment 5 Versatile Asset® II Participants - - 1,428,083 1,614,240 1,476,872 Segment 6 Versatile Asset® III Participants - - 97,287 100,547 94,771 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 10,256,733 10,464,411 8,768,372 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 2,805,603 2,999,790 2,685,520 Segment 11 Versatile Portfolios™ TFSA - - 385,257 268,994 112,439 Segment 12 Versatile Portfolios™ Education Savings Plan - - 189,648 142,815 30,067

Number of units outstandingSegment 2 Seed Money - - - 5 5 Segment 4 Versatile Asset® Participants - - 20,147 22,474 21,589 Segment 5 Versatile Asset® II Participants - - 16,869 18,572 17,567 Segment 6 Versatile Asset® III Participants - - 1,202 1,208 1,174 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 123,613 122,685 106,010 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 31,322 32,542 30,028 Segment 11 Versatile Portfolios™ TFSA - - 3,719 2,523 1,086 Segment 12 Versatile Portfolios™ Education Savings Plan - - 1,651 1,214 265



69



Co-operators Trimark Government Plus Income Fund (note 11)Underlying fund managed by Invesco Trimark Ltd.




Increase (decrease) in net assets from operations - (25) Liabilities


Net assets - - Transactions with unitholdersUnitholders' contributions - 748 Unitholders' withdrawals - (622)

Statement of Operations Transfers (to) from other funds - (259) For the periods ended December 31 Net increase (decrease) from unitholders' transactions - (133)


Investment incomeDistribution from underlying fund - 184



Gains (losses) on investmentsRealized and unrealized gains (losses) - (48)

Increase (decrease) in net assets from operations - (25)

70



Co-operators Trimark Government Plus Income FundFinancial Highlights (unaudited)For the periods ended December 31




Segment 4 Versatile Asset® Participants - - 114.21 112.52 110.79 Segment 5 Versatile Asset® II Participants - - 111.68 110.38 109.02 Segment 6 Versatile Asset® III Participants - - 109.57 108.57 107.48 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 109.99 108.95 107.89 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 115.24 114.04 112.90 Segment 11 Versatile Portfolios™ TFSA - - 103.31 102.46 101.61 Segment 12 Versatile Portfolios™ Education Savings Plan - - 104.15 102.84 101.58


2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants - - 350,032 430,967 505,781 Segment 5 Versatile Asset® II Participants - - 169,125 198,101 186,520 Segment 6 Versatile Asset® III Participants - - 7,758 8,217 15,553 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 3,397,206 2,869,312 2,595,930 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 1,586,634 1,482,467 1,138,553 Segment 11 Versatile Portfolios™ TFSA - - 163,745 101,270 39,428 Segment 12 Versatile Portfolios™ Education Savings Plan - - 38,783 20,831 4,443

Number of units outstandingSegment 4 Versatile Asset® Participants - - 3,065 3,830 4,565 Segment 5 Versatile Asset® II Participants - - 1,514 1,795 1,711 Segment 6 Versatile Asset® III Participants - - 71 76 145 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 30,887 26,336 24,062 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 13,768 12,999 10,085 Segment 11 Versatile Portfolios™ TFSA - - 1,585 988 388 Segment 12 Versatile Portfolios™ Education Savings Plan - - 372 203 44



71



Co-operators Aggressive Balanced FundUnderlying funds managed by Addenda Capital Inc.




Increase (decrease) in net assets from operations 2,030 866 Liabilities

Payables 33 27 Transactions with UnitholdersUnitholders' contributions 2,104 1,415

Net assets 20,428 17,814 Unitholders' withdrawals (1,514) (1,393) Transfers (to) from other funds (6) 114

Net increase (decrease) from unitholders' transactions 584 136 Statement of OperationsFor the years ended December 31 Net assets at end of year 20,428 17,814




345 314



Increase (decrease) in net assets from operations 2,030 866

72



Co-operators Aggressive Balanced FundUnderlying funds managed by Addenda Capital Inc.

Portfolio MixAs at December 31

Investment 2013 2012

Co-operators Canadian Equity Fund 35.04% 35.04%Co-operators Canadian Fixed Income Fund 36.00% 35.83%Co-operators Canadian Resource Fund 8.01% 8.06%Co-operators Money Market Fund 2.00% 1.99%Co-operators U.S. Equity Fund 18.95% 19.08%

100.00% 100.00%

Top Holdings of Underlying Funds (unaudited)As at December 31, 2013

Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund

Toronto Dominion Bank 9.66% Canada Housing Trust, 3.150%, 2014-06-15 7.86%Suncor Energy Inc. 5.84% Financement Quebec, FRN, 2018-06-01 3.84%Royal Bank of Canada 5.44% Province of Quebec, 3.00%, 2023-09-01 3.61%Bank of Nova Scotia 4.48% Province of Ontario, 6.500%, 2029-03-08 3.21%Canadian Imperial Bank of Commerce 4.26% Government of Canada T Bills, 2014-06-05 2.79%

Co-operators Canadian Resource Fund Co-operators Money Market Fund

Suncor Energy Inc. 8.92% Government of Canada T Bills, Due 2014-10-23 10.71%Transcanada Corp. 7.20% Government of Canada T Bills, Due 2014-06-05 8.10%Canadian Natural Resources Inc. 7.08% Royal Bank of Canada FRN 2013-09-19 6.96%Pembina Pipeline 5.49% Broadway Cr Card Tr, 4.804%, 2014-03-17 6.47%Crescent Point Energy 4.64% Daimler Canada Fin, 3.160% 2014-04-14 6.45%

Co-operators U.S. Equity Fund

Gilead Sciences Inc. 4.40%Apple Inc. 4.18%Thermo Fisher Sci 3.25% TJX Companies Inc 3.03%Express Scripts Inc. 2.93%

73



Co-operators Aggressive Balanced FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 186.27 166.58 159.02 162.56 148.88 Segment 3 Group Retirement - Investment Mgmt Only 135.17 121.09 114.62 116.71 105.64 Segment 4 Versatile Asset® Participants 199.54 180.65 172.66 177.23 161.88 Segment 5 Versatile Asset® II Participants 193.15 175.37 168.08 173.02 158.45 Segment 6 Versatile Asset® III Participants 172.03 156.54 150.39 155.16 142.39 Segment 7 Versatile Asset® IV Participants 187.85 169.79 162.00 166.00 151.38 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 164.60 149.74 143.80 148.33 136.12 Segment 9 Versatile Portfolios™ Participants (No-Load) 162.25 147.81 142.16 146.84 134.95 Segment 11 Versatile Portfolios™ TFSA 142.60 129.89 124.91 129.01 118.58 Segment 12 Versatile Portfolios™ Education Savings Plan 132.24 119.86 114.68 117.85 107.75


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 6,597,063 5,856,697 5,048,719 4,858,790 3,973,557 Segment 3 Group Retirement - Investment Mgmt Only 6,758,278 6,054,476 5,730,971 5,835,543 5,282,248 Segment 4 Versatile Asset® Participants 1,227,894 999,174 1,066,484 1,346,099 1,189,834 Segment 5 Versatile Asset® II Participants 2,364,831 2,159,546 2,354,609 2,637,371 2,640,276 Segment 6 Versatile Asset® III Participants 211,507 192,577 207,356 261,708 233,361 Segment 7 Versatile Asset® IV Participants 15,935 14,403 13,742 16,373 18,423 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2,446,379 1,987,638 1,939,034 1,411,235 684,079 Segment 9 Versatile Portfolios™ Participants (No-Load) 608,380 391,755 357,023 291,814 203,980 Segment 11 Versatile Portfolios™ TFSA 150,314 124,260 81,995 33,398 23,337 Segment 12 Versatile Portfolios™ Education Savings Plan 47,134 33,456 12,392 1,394 1,217

Number of units outstandingSegment 1 Group Retirement Products 35,416 35,159 31,749 29,889 26,690 Segment 3 Group Retirement - Investment Mgmt Only 50,000 50,000 50,000 50,000 50,000 Segment 4 Versatile Asset® Participants 6,154 5,531 6,177 7,595 7,350 Segment 5 Versatile Asset® II Participants 12,243 12,315 14,009 15,243 16,663 Segment 6 Versatile Asset® III Participants 1,229 1,230 1,379 1,687 1,639 Segment 7 Versatile Asset® IV Participants 85 85 85 99 122 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 14,862 13,274 13,484 9,514 5,026 Segment 9 Versatile Portfolios™ Participants (No-Load) 3,750 2,650 2,511 1,987 1,511 Segment 11 Versatile Portfolios™ TFSA 1,054 957 656 259 197 Segment 12 Versatile Portfolios™ Education Savings Plan 356 279 108 12 11



74



Co-operators Conservative Balanced FundUnderlying funds managed by Addenda Capital Inc.






Net assets 8,082 6,941 Unitholders' withdrawals (1,050) (575) Transfers (to) from other funds 342 363

Net increase (decrease) from unitholders' transactions 579 976 Statement of OperationsFor the years ended December 31 Net assets at end of year 8,082 6,941




168 141




75



Co-operators Conservative Balanced FundUnderlying funds managed by Addenda Capital Inc.



Co-operators Canadian Equity Fund 30.04% 30.09%Co-operators Canadian Fixed Income Fund 54.00% 53.85%Co-operators Money Market Fund 3.99% 3.99%Co-operators U.S. Equity Fund 11.97% 12.07%

100.00% 100.00%




Co-operators Money Market Fund Co-operators U.S. Equity Fund

Government of Canada T Bills, Due 2014-10-23 10.71% Gilead Sciences Inc. 4.40%Government of Canada T Bills, Due 2014-06-05 8.10% Apple Inc. 4.18%Royal Bank of Canada FRN 2013-09-19 6.96% Thermo Fisher Sci 3.25%Broadway Cr Card Tr, 4.804%, 2014-03-17 6.47% TJX Companies Inc 3.03%Daimler Canada Fin, 3.160% 2014-04-14 6.45% Express Scripts Inc. 2.93%

76



Co-operators Conservative Balanced FundFinancial Highlights (unaudited)For the years ended December 31




Segment 1 Group Retirement Products 177.34 164.80 158.48 156.65 148.87 Segment 4 Versatile Asset® Participants 185.80 173.92 166.75 166.14 154.78 Segment 5 Versatile Asset® II Participants 180.22 169.17 162.66 162.53 151.82 Segment 6 Versatile Asset® III Participants 157.26 147.95 142.58 142.79 133.66 Segment 7 Versatile Asset® IV Participants 173.70 162.07 154.89 153.83 142.87 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 149.31 140.43 135.29 135.44 126.78 Segment 9 Versatile Portfolios™ Participants (No-Load) 147.29 138.72 133.83 134.18 125.78 Segment 10 Co-operators Group Retirement Income Product 109.17 - - - - Segment 11 Versatile Portfolios™ TFSA 133.44 125.66 121.22 121.53 113.94 Segment 12 Versatile Portfolios™ Education Savings Plan 127.25 119.24 114.44 114.17 -


2013 2012 2011 2010 2009Net assets

Segment 1 Group Retirement Products 2,854,639 2,851,357 2,340,322 1,925,565 1,699,974 Segment 4 Versatile Asset® Participants 547,728 614,009 474,073 535,839 450,846 Segment 5 Versatile Asset® II Participants 686,785 727,805 666,927 713,003 770,797 Segment 6 Versatile Asset® III Participants 219,437 201,348 175,839 162,931 163,914 Segment 7 Versatile Asset® IV Participants 2,901 2,707 16,883 20,315 22,802 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 2,779,465 1,818,491 1,555,614 882,351 714,508 Segment 9 Versatile Portfolios™ Participants (No-Load) 650,022 543,257 395,870 243,563 130,540 Segment 10 Co-operators Group Retirement Income Product 55,413 - - - - Segment 11 Versatile Portfolios™ TFSA 185,348 92,832 52,822 52,534 15,224 Segment 12 Versatile Portfolios™ Education Savings Plan 100,169 89,554 28,559 8,244 -

Number of units outstanding Segment 1 Group Retirement Products 16,097 17,302 14,767 12,292 11,419 Segment 4 Versatile Asset® Participants 2,948 3,530 2,843 3,225 2,913 Segment 5 Versatile Asset® II Participants 3,811 4,302 4,100 4,387 5,077 Segment 6 Versatile Asset® III Participants 1,395 1,361 1,233 1,141 1,226 Segment 7 Versatile Asset® IV Participants 17 17 109 132 160 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 18,616 12,949 11,498 6,514 5,636 Segment 9 Versatile Portfolios™ Participants (No-Load) 4,413 3,916 2,958 1,815 1,038 Segment 10 Co-operators Group Retirement Income Product 508 - - - - Segment 11 Versatile Portfolios™ TFSA 1,389 739 436 432 134 Segment 12 Versatile Portfolios™ Education Savings Plan 787 751 250 72 -



77



Co-operators Aggressive PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.






Net assets 53,834 41,380 Unitholders' withdrawals (3,746) (3,536) Transfers (to) from other funds (565) (1,867)

Net increase (decrease) from unitholders' transactions 5,147 584 Statement of OperationsFor the years ended December 31 Net assets at end of year 53,834 41,380



ExpensesManagement fees (note 9) 1,500 1,271 Audit, legal and other fees (note 9) 5 8

1,505 1,279




78



Co-operators Aggressive PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.



Co-operators BlackRock Universe Bond Index Fund 9.96% 9.96%Co-operators BlackRock US Equity Index Fund 10.00% 10.05%Co-operators Canadian Equity Fund 20.03% 20.04%Co-operators Canadian Fixed Income Fund 10.00% 9.96%Co-operators Fidelity Global Fund 9.97% 10.04%Co-operators Fidelity True North® Fund 10.00% 10.01%Co-operators Mawer Canadian Equity Fund 15.06% 14.98%Co-operators Mawer International Equity Fund 14.98% 14.96%

100.00% 100.00%


Co-operators BlackRock Universe Bond Index Fund Co-operators BlackRock US Equity Index Fund

Government of Canada 3.75%, 2019-06-01 1.46% Apple Inc. 3.00%Government of Canada 4.00%, 2041-06-01 1.32% Exxon Mobile Corporation 2.62%Government of Canada 5.00%, 2037-06-01 1.25% Ishares Core S&P 500 ETF 1.90%Government of Canada 5.75%, 2033-06-01 1.20% Google Inc Class A 1.87%Government of Canada 3.50%, 2020-06-01 1.08% Microsoft Corporation 1.69%



Co-operators Fidelity Global Fund Co-operators Fidelity True North® Fund

Apple Inc 3.76% Toronto-Dominion Bank 7.86%Google Inc A 3.49% Alimentation Couch Cl B Sub Vtg 4.32%Gilead Sciences Inc 1.91% Royal Bank of Canada 4.32%Qualcomm Inc 1.85% Shoppers Drug Mart Corp 4.13%Philip Morris Intl Inc 1.74% Manulife Financial Corp (Cana) 3.78%

Co-operators Mawer Canadian Equity Fund Co-operators Mawer International Equity Fund

Toronto-Dominion Bank 4.99% BASF SE 3.18%Constellation Software Inc 4.97% Roche Holding AG 3.16%Bank of Nova Scotia 4.66% Deutsche Boerse AG 3.06%Royal Bank of Canada 4.34% Rolls-Royce Holdings PLC 2.73%Canadian National Railway Co 4.27% Reckitt Benckiser Group 2.44%

79



Co-operators Aggressive PortfolioFinancial Highlights (unaudited)For the years ended December 31




Segment 4 Versatile Asset® Participants 161.51 138.24 127.76 137.88 129.07 Segment 5 Versatile Asset® II Participants 160.27 137.50 127.42 135.45 127.14 Segment 6 Versatile Asset® III Participants 153.87 132.31 122.90 133.43 125.50 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 156.11 134.19 124.59 133.82 125.85 Segment 9 Versatile Portfolios™ Participants (No-Load) 154.00 132.56 123.25 132.55 124.85 Segment 11 Versatile Portfolios™ TFSA 147.97 127.35 118.38 120.68 113.68 Segment 12 Versatile Portfolios™ Education Savings Plan 138.81 118.88 109.98 113.63 106.48


2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants 4,998,367 4,082,933 3,849,485 5,399,821 4,178,520 Segment 5 Versatile Asset® II Participants 3,596,711 3,300,892 3,062,801 2,500,767 2,152,999 Segment 6 Versatile Asset® III Participants 294,250 245,250 269,289 263,964 174,242 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 34,639,134 25,913,482 23,632,247 33,775,712 25,817,181 Segment 9 Versatile Portfolios™ Participants (No-Load) 7,446,920 6,018,561 5,595,536 12,044,423 8,415,350 Segment 11 Versatile Portfolios™ TFSA 1,704,882 1,118,193 1,011,773 1,268,771 395,240 Segment 12 Versatile Portfolios™ Education Savings Plan 1,153,869 700,756 429,858 269,508 29,977

Number of units outstandingSegment 4 Versatile Asset® Participants 30,947 29,534 30,130 39,163 32,373 Segment 5 Versatile Asset® II Participants 22,442 24,007 24,037 18,462 16,934 Segment 6 Versatile Asset® III Participants 1,912 1,854 2,191 1,978 1,388 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 221,888 193,113 189,678 252,406 205,137 Segment 9 Versatile Portfolios™ Participants (No-Load) 48,357 45,404 45,401 90,867 67,404 Segment 11 Versatile Portfolios™ TFSA 11,522 8,781 8,547 10,513 3,477 Segment 12 Versatile Portfolios™ Education Savings Plan 8,312 5,895 3,909 2,372 282



80



Co-operators Conservative PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.






Net assets 75,028 64,130 Unitholders' withdrawals (9,179) (8,300) Transfers (to) from other funds (109) (419)

Net increase (decrease) from unitholders' transactions 6,658 1,735 Statement of OperationsFor the years ended December 31 Net assets at end of year 75,028 64,130


Investment incomeDistribution from underlying fund 1,441 1,942


2,106 1,958




81



Co-operators Conservative PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.



Co-operators BlackRock Universe Bond Index Fund 25.00% 24.95%Co-operators BlackRock US Equity Index Fund 9.96% 10.07%Co-operators Canadian Equity Fund 10.01% 10.04%Co-operators Canadian Fixed Income Fund 25.00% 24.96%Co-operators Fidelity Canadian Bond Fund 10.00% 9.98%Co-operators Mawer Canadian Equity Fund 10.04% 10.01%Co-operators Mawer International Equity Fund 9.99% 9.99%

100.00% 100.00%






Co-operators Fidelity Canadian Bond Fund Co-operators Mawer Canadian Equity Fund

Canada Govt 1.5% 9/01/17 3.70% Toronto-Dominion Bank 4.99%Ontario Prov 2.85% 6/02/23 3.21% Constellation Software Inc 4.97%Canada Govt 2.5% 06/01/24 2.36% Bank of Nova Scotia 4.66%Canada Housing 2.05% 6/17 2.34% Royal Bank of Canada 4.34%Quebec Province 5% 12/01/41 2.08% Canadian National Railway Co 4.27%

Co-operators Mawer International Equity Fund

BASF SE 3.18%Roche Holding AG 3.16%Deutsche Boerse AG 3.06%Rolls-Royce Holdings PLC 2.73%Reckitt Benckiser Group 2.44%

82



Co-operators Conservative PortfolioFinancial Highlights (unaudited)For the years ended December 31






2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants 4,497,869 4,225,895 5,320,802 5,399,821 4,178,520 Segment 5 Versatile Asset® II Participants 2,487,686 2,297,135 2,216,865 2,500,767 2,152,999 Segment 6 Versatile Asset® III Participants 402,963 308,868 276,131 263,964 174,242 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 46,852,569 40,217,732 36,729,412 33,775,712 25,817,181 Segment 9 Versatile Portfolios™ Participants (No-Load) 15,491,321 13,220,045 12,268,238 12,044,423 8,415,350 Segment 11 Versatile Portfolios™ TFSA 4,070,901 2,989,145 2,038,338 1,268,771 395,240 Segment 12 Versatile Portfolios™ Education Savings Plan 1,224,292 871,239 494,713 269,508 29,977

Number of units outstanding Segment 4 Versatile Asset® Participants 29,523 29,549 38,979 39,163 32,373 Segment 5 Versatile Asset® II Participants 16,733 16,440 16,579 18,462 16,934 Segment 6 Versatile Asset® III Participants 2,770 2,254 2,101 1,978 1,388 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 320,863 292,480 278,585 252,406 205,137 Segment 9 Versatile Portfolios™ Participants (No-Load) 107,552 97,331 94,072 90,867 67,404 Segment 11 Versatile Portfolios™ TFSA 31,031 24,166 17,166 10,513 3,477 Segment 12 Versatile Portfolios™ Education Savings Plan 9,767 7,408 4,403 2,372 282



83



Co-operators Moderate PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.






Net assets 98,497 84,735 Unitholders' withdrawals (10,859) (11,370) Transfers (to) from other funds (134) (3,273)

Net increase (decrease) from unitholders' transactions 4,277 (3,279) Statement of OperationsFor the years ended December 31 Net assets at end of year 98,497 84,735




2,861 2,676

Net investment income (loss) (1,108) (527)



84



Co-operators Moderate PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.



Co-operators BlackRock Universe Bond Index Fund 20.00% 19.95%Co-operators BlackRock US Equity Index Fund 9.96% 10.06%Co-operators Canadian Equity Fund 15.02% 15.05%Co-operators Canadian Fixed Income Fund 20.00% 19.94%Co-operators Fidelity True North® Fund 10.00% 10.02%Co-operators Mawer Canadian Equity Fund 10.04% 10.00%Co-operators Mawer International Equity Fund 14.98% 14.98%

100.00% 100.00%






Co-operators Fidelity True North® Fund Co-operators Mawer Canadian Equity Fund

Toronto-Dominion Bank 7.86% Toronto-Dominion Bank 4.99%Alimentation Couch Cl B Sub Vtg 4.32% Constellation Software Inc 4.97%Royal Bank of Canada 4.32% Bank of Nova Scotia 4.66%Shoppers Drug Mart Corp 4.13% Royal Bank of Canada 4.34%Manulife Financial Corp (Cana) 3.78% Canadian National Railway Co 4.27%



85



Co-operators Moderate PortfolioFinancial Highlights (unaudited)For the years ended December 31






2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants 7,812,226 7,177,082 7,815,997 7,923,866 7,439,436 Segment 5 Versatile Asset® II Participants 6,576,713 5,488,240 5,552,497 6,244,219 5,600,098 Segment 6 Versatile Asset® III Participants 429,153 453,475 479,691 532,098 489,400 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 61,609,459 53,523,158 51,159,823 50,557,003 42,992,104 Segment 9 Versatile Portfolios™ Participants (No-Load) 15,961,799 14,190,027 15,321,385 16,090,114 15,419,022 Segment 11 Versatile Portfolios™ TFSA 3,838,190 2,336,794 1,834,815 1,201,216 511,208 Segment 12 Versatile Portfolios™ Education Savings Plan 2,269,572 1,566,589 952,492 743,360 173,880

Number of units outstandingSegment 4 Versatile Asset® Participants 48,792 49,839 57,802 56,708 57,176 Segment 5 Versatile Asset® II Participants 42,154 39,042 41,953 45,527 43,732 Segment 6 Versatile Asset® III Participants 2,862 3,348 3,753 4,008 3,940 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 403,113 387,925 393,082 374,108 340,050 Segment 9 Versatile Portfolios™ Participants (No-Load) 105,873 104,115 119,007 120,197 122,935 Segment 11 Versatile Portfolios™ TFSA 27,532 18,545 15,418 9,708 4,409 Segment 12 Versatile Portfolios™ Education Savings Plan 17,191 13,193 8,535 6,438 1,616



86



Co-operators Very Aggressive PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.






Net assets 20,610 15,954 Unitholders' withdrawals (1,370) (2,614) Transfers (to) from other funds 61 (350)

Net increase (decrease) from unitholders' transactions 1,062 (831) Statement of OperationsFor the years ended December 31 Net assets at end of year 20,610 15,954




599 513




87



Co-operators Very Aggressive PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.



Co-operators BlackRock Canadian Equity Index Fund 10.01% 10.01%Co-operators BlackRock US Equity Index Fund 14.94% 15.05%Co-operators Canadian Equity Fund 20.04% 20.02%Co-operators Fidelity Global Fund 9.96% 10.02%Co-operators Fidelity True North® Fund 15.00% 15.00%Co-operators Mawer Canadian Equity Fund 15.07% 14.96%Co-operators Mawer International Equity Fund 14.98% 14.94%

100.00% 100.00%


Co-operators BlackRock Canadian Equity Index Fund Co-operators BlackRock US Equity Index Fund

Royal Bank of Canada 6.14% Apple Inc. 3.00%Toronto-Dominion Bank 5.50% Exxon Mobile Corporation 2.62%Bank of Nova Scotia 4.79% Ishares Core S&P 500 ETF 1.90%Suncor Energy Inc. 3.31% Google Inc Class A 1.87%Canadian National Railway Co 3.01% Microsoft Corporation 1.69%

Co-operators Canadian Equity Fund Co-operators Fidelity Global Fund

Toronto Dominion Bank 9.66% Apple Inc 3.76%Suncor Energy Inc. 5.84% Google Inc A 3.49%Royal Bank of Canada 5.44% Gilead Sciences Inc 1.91%Bank of Nova Scotia 4.48% Qualcomm Inc 1.85%Canadian Imperial Bank of Commerce 4.26% Philip Morris Intl Inc 1.74%

Co-operators Fidelity True North® Fund Co-operators Mawer Canadian Equity Fund

Toronto-Dominion Bank 7.86% Toronto-Dominion Bank 4.99%Alimentation Couch Cl B Sub Vtg 4.32% Constellation Software Inc 4.97%Royal Bank of Canada 4.32% Bank of Nova Scotia 4.66%Shoppers Drug Mart Corp 4.13% Royal Bank of Canada 4.34%Manulife Financial Corp (Cana) 3.78% Canadian National Railway Co 4.27%



88



Co-operators Very Aggressive PortfolioFinancial Highlights (unaudited)For the years ended December 31






2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants 1,984,155 1,668,345 1,729,701 2,020,976 1,898,719 Segment 5 Versatile Asset® II Participants 2,132,080 1,599,782 1,754,950 1,930,188 1,587,702 Segment 6 Versatile Asset® III Participants 155,532 72,401 63,745 63,740 58,067 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 12,231,862 9,760,945 8,838,427 9,423,927 7,522,479 Segment 9 Versatile Portfolios™ Participants (No-Load) 3,121,145 2,182,806 2,566,236 2,747,382 2,513,399 Segment 11 Versatile Portfolios™ TFSA 616,672 406,439 331,254 240,488 104,019 Segment 12 Versatile Portfolios™ Education Savings Plan 368,195 263,221 182,308 159,633 28,658

Number of units outstandingSegment 4 Versatile Asset® Participants 11,771 12,059 13,661 14,448 14,821 Segment 5 Versatile Asset® II Participants 12,615 11,507 13,755 13,655 12,232 Segment 6 Versatile Asset® III Participants 954 539 516 464 460 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 73,919 71,567 70,481 67,698 58,728 Segment 9 Versatile Portfolios™ Participants (No-Load) 19,122 16,203 20,690 19,927 19,782 Segment 11 Versatile Portfolios™ TFSA 3,919 3,130 2,771 1,810 850 Segment 12 Versatile Portfolios™ Education Savings Plan 2,570 2,237 1,692 1,339 262



89



Co-operators Very Conservative PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.




Increase (decrease) in net assets from operations 646 1,537 Liabilities


Net assets 64,076 59,304 Unitholders' withdrawals (12,951) (9,708) Transfers (to) from other funds 1,012 1,267

Net increase (decrease) from unitholders' transactions 4,126 3,801 Statement of OperationsFor the years ended December 31 Net assets at end of year 64,076 59,304




1,864 1,738



Increase (decrease) in net assets from operations 646 1,537

90



Co-operators Very Conservative PortfolioUnderlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and MawerInvestment Management Ltd.



Co-operators BlackRock Universe Bond Index Fund 30.00% 29.97%Co-operators BlackRock US Equity Index Fund 4.98% 5.04%Co-operators Canadian Equity Fund 5.01% 5.03%Co-operators Canadian Fixed Income Fund 30.00% 29.97%Co-operators Fidelity Canadian Bond Fund 20.00% 19.98%Co-operators Mawer Canadian Equity Fund 5.02% 5.01%Co-operators Mawer International Equity Fund 4.99% 5.00%

100.00% 100.00%






Co-operators Fidelity Canadian Bond Fund Co-operators Mawer Canadian Equity Fund

Canada Govt 1.5% 9/01/17 3.70% Toronto-Dominion Bank 4.99%Ontario Prov 2.85% 6/02/23 3.21% Constellation Software Inc 4.97%Canada Govt 2.5% 06/01/24 2.36% Bank of Nova Scotia 4.66%Canada Housing 2.05% 6/17 2.34% Royal Bank of Canada 4.34%Quebec Province 5% 12/01/41 2.08% Canadian National Railway Co 4.27%



91



Co-operators Very Conservative PortfolioFinancial Highlights (unaudited)For the years ended December 31






2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants 3,188,812 3,608,691 3,231,662 3,434,384 2,869,920 Segment 5 Versatile Asset® II Participants 1,443,173 1,549,901 1,612,031 1,750,272 1,292,084 Segment 6 Versatile Asset® III Participants 127,945 105,394 69,018 73,634 37,610 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 37,708,950 35,401,267 31,398,760 26,612,075 23,969,468 Segment 9 Versatile Portfolios™ Participants (No-Load) 17,206,020 15,705,099 15,706,321 14,026,423 10,390,044 Segment 11 Versatile Portfolios™ TFSA 3,983,988 2,547,963 1,625,083 927,921 301,126 Segment 12 Versatile Portfolios™ Education Savings Plan 416,962 386,172 323,255 169,826 44,333

Number of units outstandingSegment 4 Versatile Asset® Participants 22,189 25,454 23,544 25,460 22,520 Segment 5 Versatile Asset® II Participants 10,393 11,300 12,108 13,339 10,396 Segment 6 Versatile Asset® III Participants 960 799 537 581 312 Segment 8 Versatile Portfolios™ Participants (Back-end Load) 274,848 260,724 237,767 204,075 193,675 Segment 9 Versatile Portfolios™ Participants (No-Load) 127,120 117,080 120,222 108,576 84,616 Segment 11 Versatile Portfolios™ TFSA 33,015 21,308 13,956 8,059 2,751 Segment 12 Versatile Portfolios™ Education Savings Plan 3,534 3,320 2,868 1,531 423



92



Co-operators SRI Aggressive Portfolio (note 11)Underlying funds managed by AGF Investments Inc.





Payables - - Transactions with UnitholdersUnitholders' contributions - 480

Net assets - - Unitholders' withdrawals - (777) Transfers (to) from other funds - (1,047)

Net increase (decrease) from unitholders' transactions - (1,344) Statement of OperationsFor the periods ended December 31 Net assets at end of year - -


Investment income Distribution from underlying fund - 2





93



Co-operators SRI Aggressive PortfolioFinancial Highlights (unaudited)For the years ended December 31






2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants - - 127,647 65,366 4,038 Segment 5 Versatile Asset® II Participants - - 63,375 48,297 21,919 Segment 6 Versatile Asset® III Participants - - 1,595 1,738 1,605 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 756,471 610,805 112,050 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 234,930 93,031 41,983 Segment 11 Versatile Portfolios™ TFSA - - 120,554 77,235 38,574 Segment 12 Versatile Portfolios™ Education Savings Plan - - 26,192 16,466 7,167

Number of units outstandingSegment 4 Versatile Asset® Participants - - 993 469 31 Segment 5 Versatile Asset® II Participants - - 499 349 171 Segment 6 Versatile Asset® III Participants - - 13 13 13 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 5,950 4,411 877 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 1,855 674 329 Segment 11 Versatile Portfolios™ TFSA - - 953 560 302 Segment 12 Versatile Portfolios™ Education Savings Plan - - 232 135 64



94



Co-operators SRI Moderate Portfolio (note 11)Underlying funds managed by AGF Investments Inc.






Net assets - - Unitholders' withdrawals - (895) Transfers (to) from other funds - (3,929)

Net increase (decrease) from unitholders' transactions - (4,120) Statement of OperationsFor the periods ended December 31 Net assets at end of year - -


Investment income Distribution from underlying fund - 19





95



Co-operators SRI Moderate PortfolioFinancial Highlights (unaudited)For the years ended December 31






2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants - - 157,142 115,803 48,732 Segment 5 Versatile Asset® II Participants - - 178,064 127,282 37,207 Segment 6 Versatile Asset® III Participants - - 168,902 150,758 112,846 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 1,902,724 1,557,692 676,345 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 1,005,705 524,707 48,246 Segment 11 Versatile Portfolios™ TFSA - - 541,382 444,980 45,562 Segment 12 Versatile Portfolios™ Education Savings Plan - - 128,790 96,974 9,008

Number of units outstandingSegment 4 Versatile Asset® Participants - - 1,209 833 381 Segment 5 Versatile Asset® II Participants - - 1,386 923 292 Segment 6 Versatile Asset® III Participants - - 1,315 1,093 884 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 14,805 11,291 5,301 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 7,860 3,815 379 Segment 11 Versatile Portfolios™ TFSA - - 4,232 3,236 358 Segment 12 Versatile Portfolios™ Education Savings Plan - - 1,136 802 81



96



Co-operators SRI Very Aggressive Portfolio (note 11)Underlying funds managed by AGF Investments Inc.



Assets Net assets at beginning of year - 548 Investment in investment fund units - -



Net assets - - Unitholders' withdrawals - (615) Transfers (to) from other funds - (218)

Net increase (decrease) from unitholders' transactions - (565) Statement of OperationsFor the periods ended December 31 Net assets at end of year - -


Investment income Distribution from underlying fund - -





97



Co-operators SRI Very Aggressive PortfolioFinancial Highlights (unaudited)For the years ended December 31




Segment 4 Versatile Asset® Participants - - 122.98 139.63 - Segment 5 Versatile Asset® II Participants - - 121.59 138.60 130.57 Segment 6 Versatile Asset® III Participants - - - 138.60 130.57 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 121.67 138.65 130.61 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 121.14 138.22 130.39 Segment 11 Versatile Portfolios™ TFSA - - 121.15 138.22 130.41 Segment 12 Versatile Portfolios™ Education Savings Plan - - 106.70 120.69 112.87


2013 2012 2011 2010 2009Net assets

Segment 4 Versatile Asset® Participants - - 24,853 13,077 - Segment 5 Versatile Asset® II Participants - - 40,536 3,822 880 Segment 6 Versatile Asset® III Participants - - - 2,239 2,109 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 324,029 217,280 51,481 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 82,560 46,278 35,926 Segment 11 Versatile Portfolios™ TFSA - - 75,030 24,330 9,230 Segment 12 Versatile Portfolios™ Education Savings Plan - - 982 952 80

Number of units outstandingSegment 4 Versatile Asset® Participants - - 202 94 - Segment 5 Versatile Asset® II Participants - - 333 28 7 Segment 6 Versatile Asset® III Participants - - - 16 16 Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 2,663 1,567 394 Segment 9 Versatile Portfolios™ Participants (No-Load) - - 682 335 276 Segment 11 Versatile Portfolios™ TFSA - - 619 176 71 Segment 12 Versatile Portfolios™ Education Savings Plan - - 9 8 1

Management expense ratio (note 9)Segment 4 Versatile Asset® Participants - - 4.03% 3.93% 3.83%Segment 5 Versatile Asset® II Participants - - 4.44% 4.32% 4.20%Segment 6 Versatile Asset® III Participants - - - 4.32% 4.20%Segment 8 Versatile Portfolios™ Participants (Back-end Load) - - 4.41% 4.30% 4.20%Segment 9 Versatile Portfolios™ Participants (No-Load) - - 4.55% 4.46% 4.36%Segment 11 Versatile Portfolios™ TFSA - - 4.54% 4.46% 4.36%Segment 12 Versatile Portfolios™ Education Savings Plan - - 3.65% 3.54% 3.47%


98

Co-operators Life Insurance Company Pooled Investment Funds Notes to the Financial Statements For the periods ended December 31, 2013 and 2012 1. Description of the funds

The Pooled Fund Accounts (the Funds) are established as segregated funds by Co-operators Life Insurance Company (the Company). The Company is the sole issuer of the individual variable insurance contracts providing for investment in each Fund.

Segregated funds consist of a specified group of assets that are segregated from the other assets of the Company. The fair value of these assets determines the aggregate liability of the Company in respect of the arrangements it supports. Segments of the Funds represent various options available to the unitholders with separate terms and assets notionally separated for valuation purposes. The segments represented in these financial statements are as follows:

Segment 1- Group Retirement Products - unitholders are groups that are provided a full service plan, including investment management and full administrative services. Segment 2 - Seed Money - sole unitholder is the Company which provides seed capital upon the inception of new funds. Segment 3 - Group Retirement Products - unitholders are groups that are provided investment management services only. Segment 4 - Versatile Asset® Participants - unitholders are individual contractholders. Segment 5 - Versatile Asset® II Participants - unitholders are individual contractholders. Segment 6 - Versatile Asset® III Participants - unitholders are individual contractholders. Segment 7 - Versatile Asset® IV Participants - unitholders are individual contractholders. Segment 8 - Versatile Portfolios™ Participants - unitholders are individual contractholders of an individual variable insurance contract with a back-end load option. Segment 9 - Versatile Portfolios™ Participants - unitholders are individual contractholders of an individual variable insurance contract with a no-load option. Segment 10 - Co-operators Group Retirement Income Product – unitholders are retired employees of the Company. Segment 11 - Versatile Portfolios™ Tax Free Savings Account – unitholders are individual contractholders of an individual variable insurance contract. Segment 12 - Versatile Portfolios™ Education Savings Plan – unitholders are individual contractholders of an individual variable insurance contract.

The Funds statements include two types of funds. The asset based funds directly hold investment assets which include cash, short-term notes, bonds and debentures, and stocks. The fund of funds are segregated funds which invest entirely in units of one or more underlying funds. Contributions, withdrawals and transfers from or to the unitholders between funds are used to acquire or redeem units in the Funds. The unit value is determined by dividing the market value of the fund, reduced by applicable fees and expenses, by the total number of units outstanding in the Funds. The Funds are open-ended with the value of the assets held in each Fund described for reporting purposes by reference to notional units (units) of the Fund. Such units represent simply a means of measuring the liability of the Company to the unitholder in respect of the Fund. Transactions with unitholders occur at the notional net asset value per unit. The investment portfolios within each fund are professionally managed by:

Addenda Capital Inc. (Addenda) AGF Investments Inc. (formerly Acuity Investment Management Inc.) BlackRock Asset Management Canada Limited Fidelity Investments Canada ULC Franklin Templeton Investments Invesco Trimark Ltd. Mawer Investment Management Ltd. NEI Investments

All fund managers are independent of the Company with the exception of Addenda, a significantly-controlled subsidiary of the Co-operators Group of Companies.

99

Co-operators Life Insurance Company Pooled Investment Funds


2. Fund of funds

Fund of funds are segregated funds that invest solely in underlying segregated funds, underlying pooled funds or underlying mutual funds.

Each fund of funds has a target portfolio mix of underlying funds. As each underlying fund moves separately in the market, the portfolio mix will shift due to market changes. On a weekly basis, units of the underlying funds are bought or sold to bring the fund back to its target portfolio mix. These actions are shown as Fund of funds rebalancing on the Statement of Changes in Net Assets.

As the fund of funds’ assets are invested in underlying funds, the fund of funds pay their portion of the management fees and operating expenses of the underlying fund. All such charges are included in the management expense ratio of the fund of funds.

3. Summary of significant accounting policies

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP) as set out in Part V of the Canadian Institute of Chartered Accountants (CICA) Handbook. The significant accounting policies used in the preparation of these financial statements are described below. Valuation of investments

Accounting standards comprising CICA Handbook section 3855 “Financial Instruments – Recognition and Measurement” requires that the fair value of financial instruments which are actively traded be measured based on the bid price for the security, where available. The Funds are not regulated by the Canadian Securities Administrators (CSA); however, their policies reflect industry practices. The CSA passed measures, effective September 8, 2008, which required GAAP to be followed in the financial statements, but also provides for the use of the closing prices to determine the unit value used for purchase and redemption of units, consistent with existing practices. The Funds follow this industry practice. A reconciliation of the trading net asset value and GAAP net asset value as stated in the financial statements has been provided in Note 5. Asset based funds

Investments are designated as held for trading in accordance with CICA section 3855 “Financial Instruments – Recognition and Measurement”, and therefore, are recorded at fair value. The fair value of investments traded in active markets is based on quoted market prices at the close of trading on the reporting date. The quoted market price used for investments held by the pooled investment funds is the current bid price. The fair value of investments that are not traded in an active market is determined by using various valuation techniques. Short-term notes are valued at cost. The cost of short-term notes together with accrued interest approximates their fair value. Bonds and debentures are valued at their fair value based on the closing bid price from available public quotations of recognized dealers. Stocks are valued at their closing bid market value based on major securities exchange listings. There are no assets that are valued by other than quoted values.

Fund of funds

Investments in underlying funds are carried at the quoted market value of the units of the underlying funds held.

Foreign Currency

Monetary assets and liabilities in foreign currencies are translated into Canadian dollars at the closing rate of exchange on the valuation date. Purchases and sales of investments, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. Investment transactions and income recognition

Investment transactions are accounted for on the trade date, and realized gains and losses from such transactions are calculated on an average cost basis. Unrealized gains and losses are calculated by the change in fair value compared to the change in average cost. Dividend income is recorded on the ex-dividend date. Interest income is recognized pro rata over the term of the investment net of the amortization of the premium or discount.

100


Notes to the Financial Statements 3. Summary of significant accounting policies (continued)

Earnings The earnings of each segregated fund are re-invested in the Fund, and result in higher unit values. Transaction costs

Brokerage commissions incurred in the purchase or sale of investments in the Funds are included in transaction costs and are expensed in the period incurred. Funds that invest only in units of an underlying investment fund are not subject to transaction costs. Tax status

The Funds are deemed to be inter-vivos trusts under the provisions of the Income Tax Act (Canada). Income of a segregated fund is deemed to be payable to the unitholders and therefore the segregated funds will not have taxable income. In addition, capital gains and losses are deemed to be those of the unitholders and not of the Funds. Realized gains or losses may be reduced by the amount of gains or losses realized by unitholders on the redemption of their investments. As a result, no provision for income tax is required in the financial statements of the Funds.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. The fair value of investments is a financial statement component subject to management judgement and estimates. Actual results could differ from these estimates. Changes in estimates are recorded in the accounting period in which they are determined.

4. Future change in accounting policies In 2008, the Canadian Accounting Standards Board confirmed that Canadian publicly accountable enterprises will be required to adopt International Financial Reporting Standards (IFRS) by 2011 to replace Canadian generally accepted accounting principles (Canadian GAAP). The Funds meets the definition of a publicly accountable enterprise. In December 2011, The Canadian Accounting Standards Board announced a further extension of the option to defer the adoption of IFRS for segregated funds of life insurance enterprises until 2014. The Funds plan to adopt IFRS for the fiscal year beginning January 1, 2014.

5. Reconciliation of trading net asset value to GAAP net asset value

The difference between trading net asset value used for unitholder valuations and GAAP net asset value reflected in the financial statements as at December 31 is as follows (in thousands of dollars, except per unit figures):

Trading Section GAAP Trading Section GAAP Trading GAAP Trading GAAPnet asset 3855 net asset net asset 3855 net asset net asset net asset net asset net asset

value adjustment value value adjustment value value value value valueCo-operators Balanced Fund 106,269$ (100)$ 106,169$ 127,566$ (178)$ 127,388$ 249.83$ 249.60$ 222.86$ 222.55$ Co-operators Canadian Equity Fund 118,306 (112) 118,194 108,003 (215) 107,788 210.53 210.33 190.40 190.02 Co-operators Canadian Fixed Income Fund 118,609 (149) 118,460 116,711 (140) 116,571 139.93 139.75 149.28 149.10 Co-operators Canadian Resource Fund 28,866 (43) 28,823 32,474 (84) 32,390 221.17 220.84 237.62 237.01 Co-operators Money Market Fund 9,368 (1) 9,367 8,254 (1) 8,253 116.73 116.73 118.50 118.49 Co-operators U.S. Equity Fund 20,381 (2) 20,379 11,310 3 11,313 139.61 139.60 98.02 98.05 Co-operators U.S. Growth Fund 741 - 741 701 - 701 98.14 98.13 77.03 77.05

as at December 31, 2013 as at December 31, 2012 December 31, 2013 December 31, 2012

Net assets Net assetsNet assets Net assets per unit as at per unit as at

101

Co-operators Life Insurance Company Pooled Investment Funds Notes to the Financial Statements N 6. Financial risk management

There are several types of risk to which a segregated fund or an underlying fund may be subject. These include credit risk, market risk and liquidity risk. The Company sets the risk management policy for those funds managed by Addenda. A segregated fund which invests in the units of an underlying fund will be subject to the same investment risks as the underlying fund. Risks for funds managed by other than Addenda will be subject to the risk management policy of the fund manager of the underlying fund. To understand those risks and how they are managed, unitholders should consult the financial statements of those underlying funds.

The Funds are also exposed to operational risks such as custody risk. Custody risk is the risk of loss of securities held in custody occasioned by the insolvency or negligence of the custodian. Although an appropriate legal framework is in place that eliminates the risk of loss of value of the securities held by the custodian, in the event of its failure, the ability of the Fund to transfer the securities might be temporarily impaired. The risk management policy for Addenda is outlined below. To minimize exposure to financial risk, the following investments and practices are prohibited: a) Short sales; b) Margin trading; c) Commodities; d) Lending money, except in connection with the acquisition of publicly distributed bonds, debentures or other

corporate or government obligations; and e) Use of derivatives for speculation.

Credit risk Credit risk refers to the risk of financial loss from the failure of a counterparty/debtor to honour its obligation to the Funds. The Funds are exposed to credit risk principally through investments in fixed income securities. There is an increased chance of credit risk when there is a concentration of investments made in entities in similar industry sectors, in the same geographical area or within a single entity. The investment policy manages credit risk on the bond portfolio by setting portfolio limits for composition, issuer type, bond quality, single issuer, corporate sector, and general guidelines for geographic exposure. The bond portfolio remains very high quality. The percentage of bonds rated A or better are:

2013 2012Co-operators Balanced Fund 90.3% 90.1%Co-operators Canadian Fixed Income Fund 90.9% 91.1% Short-term securities are only purchased from an approved list of investments within single issuer and quality limits (R-1 by Dominion Bond Rating Service). Bonds, debentures, notes and mortgage-backed securities are eligible to be purchased in the Canadian bond portfolio. Units or warrants are eligible only if they convert to any of the items mentioned above. There is no limit for Canadian bonds rated BBB or better, Canadian bonds rated BB or lower are not purchased unless they are convertible to the above mentioned items. The bond investments in the securities of one issuer will not be more than 10% of the total fair value of the fund unless guaranteed by the Government of Canada or one of the provinces of Canada. U.S. bonds, debentures and notes are eligible to be purchased if rated A or better by Moody’s Investor Service or Standard & Poor’s. Credit risk is also minimized through the use of guarantees. The guarantor will provide the investor with the applicable investment return, per the agreement. There is, however, still a risk that the guarantor will not be able to fulfill the guarantee. The Company’s credit risk exposure is the carrying value of the invested assets. Investments in Canadian equities will only be made in shares which are publicly traded on a prescribed Canadian stock exchange, relatively liquid, and for which material information is attainable. Convertibles, warrants, rights, receipts or units are allowed to be purchased as long as the underlying security is stocks. Investments in U. S. equities will be in shares listed on the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or National Association of Securities Dealers Automated Quotation System (NASDAQ). Convertibles, warrants, rights, receipts or units will be allowed to be purchased as long as the underlying security is a qualified stock. Investments in Global equities will be in shares listed on stock exchanges anywhere in the world. This primarily includes, but is not limited to the Toronto Stock Exchange (TSX), NYSE, NASDAQ, AMEX, Frankfurt Stock Exchange, London Stock Exchange, Paris Stock Exchange, Tokyo Stock

102


Notes to the Financial Statements 6. Financial risk management (continued)

Credit risk (continued) Exchange, and Singapore Stock Exchange. Convertibles, warrants, rights, receipts or units will be allowed to be purchased as long as the underlying security is a qualified stock. A single stock investment will not be more than 10% of the fair value of all stocks held by the Fund and no more than 10% of any class of the outstanding voting securities of a single issuer may be acquired. The Funds may use derivatives, such as options, forwards, and futures to hedge against potential loss. The Funds may also use derivatives for non-hedging purposes in order to invest indirectly in securities or financial markets, to gain exposure to other currencies and to provide protection for the Funds’ assets. Any use of derivatives will be consistent with the investment objectives of the Funds and will comply with Canadian securities regulations. The Funds will not use derivatives for speculation. These practices are put in place to minimize the Funds’ exposure to risk due to: the risk that changes in the value of a hedging instrument will not match those of the investment being hedged; a market may not exist when the Funds want to close out their position in a derivative; the Funds could experience a loss if the other party to a derivative is unable to fulfil its obligations and the Funds could experience a loss if they have an open position in certain derivatives with a dealer who goes bankrupt. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of three types of risks: a) Equity Risk

Equity risk is where fluctuations in the value of equity securities affects the level and timing of recognition of gains and losses on securities held, and causes changes in realized and unrealized gains and losses. Historically, stock fair values have produced gains and losses over the short-term, but well diversified portfolios have gained in aggregate value over the long term.

The following table represents the fair value of stocks, the percentage of the fair value of stocks in total investments, and the estimated effect on net assets of a 10% movement in stock markets with all other variables held constant (in thousands of dollars):

2013 2012 2013 2012 2013 2012Co-operators Balanced Fund 64,635$ 78,601$ 60.97% 61.82% 6,463$ 7,860$ Co-operators Canadian Equity Fund 115,893 105,462 98.05% 97.89% 11,589 10,546 Co-operators Canadian Resource Fund 28,133 31,802 97.65% 98.18% 2,813 3,180 Co-operators U.S. Equity Fund 20,306 10,862 99.55% 95.93% 2,031 1,086 Co-operators U.S. Growth Fund 728 688 98.16% 97.97% 73 69

Fair valuePercentage of total

investmentsEffect of 10% movement on

net assets

b) Foreign Exchange Risk

Foreign exchange risk represents the risk that the Funds incur losses due to exposure to foreign currency fluctuations. The Funds’ foreign exchange risk is related to its stock holdings. A 10% change in the value of the United States dollar would affect the net assets by (in thousands of dollars):

2013 2012Co-operators Balanced Fund 1,589$ 1,814$ Co-operators U.S. Equity Fund 2,031 1,086 Co-operators U.S. Growth Fund 73 69 c) Interest Rate Risk

Interest rate risk is the potential for financial loss arising from changes in interest rates. This risk arises when the asset cash flows do not coincide with the cash flows arising from the liabilities, as this may result in the need to either sell assets to meet portfolio payments and expenses or reinvest excess asset cash flows under unfavorable interest environments.

103


Notes to the Financial Statements 6. Financial risk management (continued)

c) Interest Rate Risk (continued)

The value of a fund that invests in fixed income securities, such as bonds, treasury bills and commercial paper, is directly affected by changes in the general level of interest rates. As interest rates increase, the price of these types of securities tends to fall. Conversely, if interest rates fall, the price of fixed income securities increases. As a result, funds that invest in certain fixed income securities can experience gains or losses during periods of changing interest rates. Many kinds of fixed income securities have prepayment terms which allow the issuer to repay the principal prior to maturity. During periods of falling interest rates, the Funds may be compelled to unexpectedly reinvest in securities with lower interest rates. The impact on the net assets of the Funds from a 1% move in interest rate would be (in thousands of dollars):

2013 2012Co-operators Balanced Fund 2,473$ 3,300$ Co-operators Canadian Fixed Income Fund 7,534 8,091 Co-operators Money Market Fund 40 24 The following table represents the exposure to debt instruments by maturity date as at December 31, 2013 (in thousands of dollars):

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012Co-operators Balanced Fund 5,931$ 3,635$ 7,725$ 9,540$ 8,189$ 7,788$ 8,658$ 13,487$ 10,852$ 14,085$ Co-operators Canadian Equity Fund 2,231 2,256 - - - - - - - - Co-operators Canadian Fixed Income Fund 13,252 5,852 23,020 26,769 24,444 17,760 23,202 31,204 33,988 35,001 Co-operators Canadian Resource Fund 662 528 - - - - - - - - Co-operators Money Market Fund 9,333 8,226 - - - - - - - -

Less than 1 year 1 - 3 years 4 - 5 years than 10 years6 - 10 yearsGreater

Liquidity risk Liquidity risk is the risk of having insufficient cash resources to meet financial obligations without raising funds at unfavourable rates or selling assets on a forced basis. The Funds are exposed to liquidity risk due to the possibility of daily cash redemptions of units, redemption of units in an illiquid market and the risk of fund managers not having the liquidity for payout. The Funds mitigate this risk by investing in liquid investments that are traded in an active market and can be readily disposed.

7. Related party transactions

The Company provided capital to seed these funds at inception. At December 31, the Company held the following units in the funds:

2013 2012 2013 2012Co-operators AGF Clean Environment Equity Fund 377 377 Co-operators Ethical Select Balanced Portfolio 250 250 Co-operators AGF Social Values Balanced Fund 334 334 Co-operators Ethical Select Growth Portfolio 500 500 Co-operators AGF Social Values Equity Fund 337 337 Co-operators Ethical Select Conservative Portfolio 500 500 Co-operators Bissett Canadian Dividend Fund 494 489 Co-operators Ethical Select Income Portfolio 500 500 Co-operators Ethical Balanced Fund 250 250 Co-operators Mawer Balanced Fund 1,000 1,000 Co-operators Ethical Canadian Equity Fund 500 500 Co-operators Mawer Canadian Equity Fund 1,000 1,000 Co-operators Ethical International Equity Fund 500 500 Co-operators Mawer International Equity Fund 1,000 1,000

104



7. Related party transactions (continued)

The Company ensures the daily administration of the Funds and provides the Funds, or ensures the Funds are provided, with all services required to function properly. During the years ended December 31, the Funds paid the Company for management services which are in the normal course of operations and are established at terms and conditions using available market information as follows (in thousands of dollars):

Paid Payable Paid PayableCo-operators Balanced Fund 1,644$ 172$ 1,737$ 162$ Co-operators Canadian Equity Fund 2,469 255 2,784 222 Co-operators Canadian Fixed Income Fund 2,772 266 2,405 252 Co-operators Canadian Resource Fund 661 63 747 68 Co-operators Money Market Fund 101 11 118 9 Co-operators U.S. Equity Fund 297 40 137 19 Co-opeartors U.S. Growth Fund 10 1 75 2

7,954$ 808$ 8,003$ 734$

2013 2012

8. Trading net asset value per unit

The trading net asset value is calculated for each segment by dividing the trading net asset value by the number of units outstanding. The trading net asset value per unit is determined as of the close of each business day. The units of the funds are sold and redeemable at the current trading net asset value per unit at the option of the unitholder.

9. Management expense ratio

Each fund is responsible for the payment of all third party expenses relating to its operations, including but not limited to, legal, accounting, audit, trustee, custodial fees and costs of regulatory documentation.

Management fees cover the charges incurred by the Funds for the investment and administration of the segregated funds, and are calculated based on the net asset value of the segregated funds. The management expense ratio is calculated by dividing all fees, charges and other expenses paid or payable by the segregated fund (plus taxes), during the financial year by the average net asset value of the segregated fund. Management Expense Ratios are calculated for Individual Retirement and Investment Services only.

10. Portfolio turnover rate 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 year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. The portfolio turnover rate is disclosed in the first full year after the underlying fund’s inception. The company may not have a fiscal year end of December 31, therefore the reported portfolio rates are not necessarily as at December 31. The portfolio turnover ratio is not required to be disclosed for money market funds.

105

Co-operators Life Insurance Company Pooled Investment Funds Notes to the Financial Statements 11. Commencement and termination of funds

The Co-operators Acuity Social Values Global Equity Fund ceased operations on May 25, 2012. Effective July 3, 2012, the following Fund names were changed: Co-operators Mawer Equity Large Cap Fund was renamed Co-operators Mawer Canadian Equity Fund, and Co-operators Mawer World Investment Fund was renamed Co-operators Mawer International Equity Fund. During the fourth quarter of 2012, the following funds ceased operations: Co-operators Trimark Canadian Bond Fund Co-operators Trimark Canadian Class Fund Co-operators Trimark Global Fundamental Equity Fund Co-operators Trimark Government Plus Income Fund Co-operators SRI Aggressive Portfolio Co-operators SRI Moderate Portfolio Co-operators SRI Very Aggressive Portfolio During the fourth quarter of 2012, the following funds were introduced: Co-operators Bissett Canadian Dividend Fund Co-operators Ethical Balanced Fund Co-operators Ethical Canadian Dividend Fund Co-operators Ethical International Equity Fund Co-operators Ethical Select Canadian Balanced Portfolio Co-operators Ethical Select Canadian Growth Portfolio Co-operators Ethical Select Conservative Portfolio Co-operators Ethical Select Income Portfolio

Effective June 13, 2013, the following Fund names were changed: Co-operators Ethical Canadian Dividend Fund was renamed Co-operators Ethical Canadian Equity Fund. Co-operators Ethical Select Canadian Balanced Portfolio was renamed Co-operators Ethical Select Balanced Portfolio, Co-operators Ethical Select Canadian Growth Portfolio was renamed Co-operators Ethical Select Growth Portfolio, and

12. Fair value estimation

Investments - measured at fair value

The Fund is responsible for determining the fair value of its investment portfolio by utilizing market-driven measurements obtained from active markets where available, by considering other observable and unobservable inputs and by employing valuation techniques that make use of current market data. Assets and liabilities recorded at fair value in the statement of net assets are measured and classified in a hierarchy consisting of three levels for disclosure purposes. The three levels are based on the significance and reliability of the inputs to the respective valuation techniques. The input levels are defined as follows: Level 1 - Quoted prices Level 1 – Quoted prices represents unadjusted quoted prices for identical instruments exchanged in active markets. The fair value is determined based on quoted prices in active markets obtained from external pricing sources. The investments classified within Level 1 are valued at the bid price recorded by the securities exchanges on which such investments are principally traded at the financial reporting date. Securities not traded on the valuation date are valued at the last recorded bid price used on the previous valuation day if the former is not available. Assets measured at fair value and classified as Level 1 include cash and cash equivalents and stocks. Level 2 - Significant other observable inputs Level 2 – Significant other observable inputs includes directly or indirectly observable inputs other than quoted prices for identical instruments exchanged in active markets. These inputs include quoted prices for similar instruments exchanged in active markets; quoted prices for identical or similar instruments exchanged in inactive markets; inputs other than quoted prices that are observable for the instruments, such as interest rates and yield curves, volatilities, prepayment spreads, loss severities, credit risks and default rates where available; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Investment funds classified in Level 2 were fair valued using the net asset value of the investment fund, as reported by the respective investee fund administrator. For these investment funds management believes the Fund could have redeemed its investment at the net asset value per unit at the financial statement date. Assets measured at fair value and classified as Level 2 include short-term notes, bonds, foreign equities, and other investments.

106

Co-operators Life Insurance Company Pooled Investment Funds Notes to the Financial Statements

12. Fair value estimation (continued)

Level 3 - Significant unobservable inputs Level 3 – Significant unobservable inputs includes inputs that are not based on observable market data. Management is required to use its own assumptions regarding unobservable inputs as there is little, if any, market activity in these assets or liabilities or related observable inputs that can be corroborated at the measurement date. Unobservable inputs require significant management judgement or estimation to make certain projections and assumptions about the information that would be used by market participants in pricing assets or liabilities. To verify pricing, the Company assesses the reasonability of the fair values by comparing to industry accepted valuation models, to movements in credit spreads and to recent transaction prices for similar assets where available. The Funds did not hold any investments classified within Level 3 during the years ended December 31, 2013 or 2012.

The following table summarizes the inputs used as at December 31 in valuing the Fund’s investments at fair value.

2013 2012 2013 2012 2013 2012 2013 2012

Co-operators Balanced FundCash and cash equivalents 16$ 165$ -$ -$ -$ -$ 16$ 165$ Short-term notes - - 3,359 1,345 - - 3,359 1,345 Bonds and debentures - - 37,996 47,190 - - 37,996 47,190 Stocks 48,743 60,462 15,892 18,139 - - 64,635 78,601

48,759$ 60,627$ 57,247$ 66,674$ -$ -$ 106,006$ 127,301$

Co-operators Canadian Equity FundCash and cash equivalents 77$ 15$ -$ -$ -$ -$ 77$ 15$ Short-term notes - - 2,231 2,256 - - 2,231 2,256 Stocks 115,893 105,462 - - - - 115,893 105,462

115,970$ 105,477$ 2,231$ 2,256$ -$ -$ 118,201$ 107,733$

Co-operators Canadian Fixed Income FundCash and cash equivalents 80$ 12$ -$ -$ -$ -$ 80$ 12$ Short-term notes - - 3,301 1,509 - - 3,301 1,509 Bonds and debentures - - 114,605 115,078 - - 114,605 115,078

80$ 12$ 117,906$ 116,587$ -$ -$ 117,986$ 116,599$

Co-operators Canadian Resource FundCash and cash equivalents 16$ 63$ -$ -$ -$ -$ 16$ 63$ Short-term notes - - 662 528 - - 662 528 Stocks 28,133 31,802 - - - - 28,133 31,802

28,149$ 31,865$ 662$ 528$ -$ -$ 28,811$ 32,393$

Co-operators Money Market FundCash and cash equivalents 11$ 7$ -$ -$ -$ -$ 11$ 7$ Short-term notes - - 4,775 4,918 - - 4,775 4,918 Bonds and debentures - - 4,558 3,307 - - 4,558 3,307

11$ 7$ 9,333$ 8,225$ -$ -$ 9,344$ 8,232$

Co-operators U.S. Equity FundCash and cash equivalents 92$ 673$ -$ -$ -$ -$ 92$ 673$ Stocks - - 20,306 10,862 - - 20,306 10,862

92$ 673$ 20,306$ 10,862$ -$ -$ 20,398$ 11,535$

Co-opeartors U.S. Growth FundCash and cash equivalents 14$ (479)$ -$ -$ -$ -$ 14$ (479)$ Stocks - - 728 688 - - 728 688

14$ (479)$ 728$ 688$ -$ -$ 742$ 209$

Level 1 Level 2 Level 3 Fair Value Total

All Fund of funds investment in investment funds units have been classified as Level 2. During the years ended December 31, 2013 and 2012, there were no financial assets transferred between Level 1, Level 2 or Level 3.

107

december 2013 - the co-operators

Documents