dynamic value annual

annual REPORTPeriod ended June 30, 2011

ANALYSTS CHOICE INVESTMENT FUND COMPANY OF THE YEAR 2010

ADVISORS CHOICE INVESTMENT FUND COMPANY OF THE YEAR 2010

2010 ADVISORS AnD AnAlyStS CHOICE InVEStmEnt FUnD COmPAny OF tHE yEAR

TABLE OF CONTENTSBoard of Governors Report Management Responsibility for Financial Reporting DYNAMIC TRUST FUNDS Dynamic Blue Chip Funds Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund) Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund) Dynamic Equity Income Funds Dynamic Dividend Fund Dynamic Dividend Income Fund Dynamic Energy Income Fund Dynamic Equity Income Fund Dynamic Small Business Fund Dynamic Strategic Yield Fund Dynamic Fixed Income Funds Dynamic Advantage Bond Fund Dynamic Canadian Bond Fund Dynamic Dollar-Cost Averaging Fund Dynamic High Yield Bond Fund Dynamic Money Market Fund Dynamic Real Return Bond Fund Dynamic Short Term Bond Fund Dynamic Power Funds Dynamic Power American Currency Neutral Fund Dynamic Power American Growth Fund Dynamic Power Balanced Fund Dynamic Power Canadian Growth Fund Dynamic Power Global Growth Fund Dynamic Power Small Cap Fund Dynamic Specialty Funds Dynamic Diversified Real Asset Fund Dynamic Financial Services Fund (formerly Dynamic Focus+ Wealth Management Fund) Dynamic Focus+ Resource Fund Dynamic Global Infrastructure Fund Dynamic Global Real Estate Fund Dynamic Precious Metals Fund Dynamic Strategic Portfolios Dynamic Strategic All Income Portfolio Dynamic Strategic Growth Portfolio Dynamic Value Funds Dynamic American Value Fund Dynamic Canadian Dividend Fund Dynamic Dividend Value Fund Dynamic European Value Fund Dynamic Far East Value Fund Dynamic Global Asset Allocation Fund (formerly Dynamic Global Value Balanced Fund) Dynamic Global Discovery Fund Dynamic Global Dividend Value Fund Dynamic Global Value Fund Dynamic Protected Dividend Value Fund Dynamic Protected Global Value Fund Dynamic Value Balanced Fund Dynamic Value Fund of Canada DynamicEdge Trust Portfolios DynamicEdge Balanced Portfolio DynamicEdge Balanced Growth Portfolio DynamicEdge Equity Portfolio DynamicEdge Growth Portfolio DynamicEdge 2020 Portfolio 1 2 DynamicEdge 2025 Portfolio DynamicEdge 2030 Portfolio Dynamic Aurion Funds Dynamic Aurion Total Return Bond Fund 3 13 19 27 36 43 51 59 68 76 84 89 99 104 109 116 121 127 139 147 152 158 165 172 181 187 197 204 207 211 218 224 231 238 246 253 261 269 279 284 290 301 308 313 318 323 328 DYNAMIC CORPORATE CLASS FUNDS Corporate Class Blue Chip Funds Dynamic Blue Chip Balanced Class (formerly Dynamic Focus+ Balanced Class) Corporate Class Equity Income Funds Dynamic Dividend Income Class Dynamic Strategic Yield Class Corporate Class Fixed Income Funds Dynamic Advantage Bond Class Dynamic Money Market Class Corporate Class Power Funds Dynamic Power American Growth Class Dynamic Power Balanced Class Dynamic Power Canadian Growth Class Dynamic Power Global Balanced Class Dynamic Power Global Growth Class Dynamic Power Global Navigator Class Corporate Class Value Funds Dynamic American Value Class Dynamic Canadian Dividend Class Dynamic Canadian Value Class Dynamic EAFE Value Class Dynamic Global Discovery Class Dynamic Global Dividend Value Class Dynamic Global Value Class Dynamic Value Balanced Class Corporate Class Specialty Funds Dynamic Emerging Markets Class Dynamic Strategic Energy Class (formerly Dynamic Global Energy Class) Dynamic Strategic Gold Class DynamicEdge Corporate Class Portfolios DynamicEdge Balanced Class Portfolio DynamicEdge Balanced Growth Class Portfolio DynamicEdge Equity Class Portfolio DynamicEdge Growth Class Portfolio DynamicEdge 2020 Class Portfolio DynamicEdge 2025 Class Portfolio DynamicEdge 2030 Class Portfolio Dynamic Aurion Corporate Class Funds Dynamic Aurion Canadian Equity Class Dynamic Aurion Tactical Balanced Class Dynamic Aurion Total Return Bond Class Dynamic Global Fund Corporation Dynamic Managed Portfolios DMP Canadian Dividend Class DMP Canadian Value Class DMP Global Value Class DMP Power Canadian Growth Class DMP Power Global Growth Class DMP Resource Class DMP Value Balanced Class Dynamic Managed Portfolios Ltd. Notes to the Financial Statements Independent Auditors Report 332 336 340

346 352 360 370 379 384 389 401 409 413 420 427 433 439 446 454 461 469 478 489 496 503 508 513 518 523 528 532 536 540 546 553 560 563 568 573 578 583 588 596 602 604 648

BOARD OF GOVERNORS REPORT

Goodman & Company, Investment Counsel Ltd., as manager (in such capacity, the Manager) and trustee (in such capacity, the Trustee) of your fund, recognizes that its business rests on a foundation of trust. For this reason the Manager has, since 1996, provided investors with the benefit of an independent governance body (the Board of Governors) to oversee the operations of the funds managed by the Manager (the Funds), including your investment. The function of the Board of Governors is to represent the interests of investors in the Funds and to act in an advisory capacity to the Manager and Trustee of the Funds. This responsibility is expressed in the Board of Governors mandate to: help protect the interests of the securityholders of the Funds; oversee the operations of the Funds such that they are managed in the best interests of the securityholders; and act in an advisory role to the Manager and Trustee of the Funds. The members of the Board of Governors are: Mr. Ronald Singer (Chairman), Mr. Richard Crowe (Vice-Chairman), Mr. Alain Benedetti, Mr. Brahm Gelfand, Mr. Simon Hitzig, Mr. Garth MacRae and Mr. Robert Ruggles. Mr. Singer is a retired partner of Hyde Houghton, Chartered Accountants. Mr. Crowe is retired and formerly President, Portfolio Manager and a founding partner of Senecal and Associates Investment Counsel. Mr. Benedetti is a retired Vice-Chairman and Canadian Area Managing Partner of Ernst & Young LLP. Mr. Gelfand is counsel at Lapointe Rosenstein Marchand Melan on L.L.P., a law firm. Mr. Hitzig is president of Accord Financial Ltd., a financial services firm. Mr. MacRae is a chartered accountant, a director c of Dundee Corporation, a former director of DundeeWealth Inc. and has held various positions within the Dundee organization since 1987. Mr. Ruggles is a retired investment counsel and portfolio manager and a founding partner of Ruggles & Crysdale Inc., which subsequently merged with Guardian Capital Group Ltd., an investment counseling firm. A majority of the members of the Board of Governors are independent of management. In 2007, pursuant to new regulatory requirements, the Manager appointed an Independent Review Committee (the IRC) to review and provide recommendations or approval, as required, regarding certain conflict of interest matters referred to it by the Manager. Upon completion of and as a consequence of the acquisition of DundeeWealth Inc. by The Bank of Nova Scotia in February 2011, the IRC was dismantled in accordance with the requirements of National Instrument 81-107 Independent Review Committee for Investment Funds and then promptly reconstituted with the same members as before. The IRC currently consists of four members, all of whom are also members of the Board of Governors. The IRC is comprised of Mr. Brahm Gelfand (Chair), Mr. Alain Benedetti, Mr. Ronald Singer and Mr. Richard Crowe. The IRC and the Board of Governors are two distinct bodies. In order to carry out its mandate effectively, the Board of Governors has formed the following committees: The Audit Committee: This committee reviews the financial statements and the management report of fund performance of the Funds, provides the independent auditors of the Funds with a means to raise any unresolved issues with management and provides the auditors the vehicle to maintain their independence. The Audit Committee is comprised of Mr. Alain Benedetti (Chair), Mr. Simon Hitzig, Mr. Brahm Gelfand and Mr. Garth MacRae. The Fund Review Committee: This committee is responsible for overseeing, among other things, fund performance, certain activities of the portfolio managers, soft dollar arrangements and execution costs. The Fund Review Committee is comprised of Mr. Robert Ruggles (Chair), Mr. Ronald Singer and Mr. Richard Crowe. The Governance Committee: This committee deals with, among other things, succession planning, member evaluation and education, member selection and appointment, code of ethics, compliance with laws and regulations, whistleblowing mechanism and ongoing developments with securities regulations relating to the Manager and the investment industry. The Governance Committee is comprised of Mr. Alain Benedetti (Chair), Mr. Richard Crowe and Mr. Ronald Singer. Representatives from the portfolio management team of the Manager regularly report to the Board of Governors on the operations of the Funds to ensure that the stated mandate of each Fund is being followed. Senior management, including representatives of the Managers Compliance Committee and its Internal Auditor, periodically report to the Board of Governors on the controls that the Manager has in place to protect the Funds assets and to review and discuss the following: compliance with the Managers Code of Ethics; appropriate resolution of potential or perceived conflicts of interest; internal controls over financial reporting; the accuracy of daily net asset value calculations; and compliance with regulatory requirements.

The Director, Internal Audit, provides reports to the Audit Committee of the Board of Governors and provides independent oversight and reports on the operations of the Manager that affect the Funds. In addition, the Manager has formed a committee called the Oversight Committee for Sub-Advisors and Portfolio Solutions which is responsible for monitoring and evaluating sub-advisors. The Oversight Committee periodically reports to the Board of Governors. The purpose and function of the Board of Governors continues to evolve over time in response to changing market conditions and investment fund legislation and regulations.-1-

Dynamic FundsMANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying financial statements of the Funds (as defined in Note 1(a)) have been prepared by Goodman & Company, Investment Counsel Ltd., in its capacity as manager (the Manager) of the Funds, and have been approved by the Boards of Directors of Dynamic Global Fund Corporation (DGFC) and Dynamic Managed Portfolios Ltd. (DMPL), with respect to the Funds that are corporate funds (the Corporate Funds), and by the Board of Directors of Goodman & Company, Investment Counsel Ltd., in its capacity as trustee (the Trustee) of the Funds, with respect to the Funds that are trust funds (the Trust Funds). The Boards of Directors of DGFC and DMPL, with respect to the Corporate Funds, and the Board of Directors of the Trustee, with respect to the Trust Funds, are responsible for the information and representations contained in these financial statements and the management report of fund performance. The Manager maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include certain amounts that are based on estimates and judgements made by the Manager. The significant accounting policies which the Manager believes are appropriate for the Funds are described in Note 2 to the financial statements. The Boards of Directors of DGFC and DMPL, with respect to the Corporate Funds, and the Board of Directors of the Trustee, with respect to the Trust Funds, have delegated responsibility for oversight of the financial reporting process to the Board of Governors for the Funds. The Audit Committee of the Board of Governors is responsible for reviewing the financial statements and the management report of fund performance and recommending them to the Boards of Directors of DGFC, DMPL and the Trustee for approval, in addition to meeting with management, internal auditors and external auditors to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues. PricewaterhouseCoopers LLP are the external auditors of the Funds, appointed by the unitholders. They have audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express to the unitholders their opinion on the financial statements. Their report is set out herein.

17SEP200913251692DAVID GOODMAN President and Chief Executive Officer Goodman & Company, Investment Counsel Ltd. September 13, 2011

16FEB201014125164JOHN PEREIRA Executive Vice President and Chief Financial Officer Goodman & Company, Investment Counsel Ltd.

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6DEC201011575525

ANNUAL FINANCIAL STATEMENTSYear Ended June 30, 2011

Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENT OF INVESTMENTSAs at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

BONDS AND DEBENTURES (32.0%) Canadian Bonds and Debentures (31.3%) Federal (13.0%) Canada Housing Trust, 1.247% Jun. 15 13 Canada Housing Trust, 1.422% Sep. 15 15, Series 34 Government of Canada, 3.00% Jun. 01 14 Government of Canada, 2.00% Dec. 01 14 Government of Canada, 3.00% Dec. 01 15 Government of Canada, 2.75% Sep. 01 16 Government of Canada, 4.00% Jun. 01 17 Government of Canada, 3.75% Jun. 01 19 Government of Canada, 3.50% Jun. 01 20 Government of Canada, 3.25% Jun. 01 21 Government of Canada, 5.75% Jun. 01 29 Government of Canada, 4.00% Jun. 01 41 Provincial (7.1%) Financement-Qu bec, 5.25% Jun. 01 34 e Province of British Columbia, 4.10% Dec. 18 19 Province of British Columbia, 3.70% Dec. 18 20 Province of British Columbia, 4.80% Jun. 15 21 Province of British Columbia, 5.70% Jun. 18 29 Province of Nova Scotia, 4.15% Nov. 25 19 Province of Ontario, 1.428% Apr. 12 16 Province of Ontario, 4.20% Mar. 08 18 Province of Ontario, 4.40% Jun. 02 19 Province of Ontario, 4.20% Jun. 02 20 Province of Ontario, 4.00% Jun. 02 21 Province of Ontario, 4.60% Jun. 02 39 Province of Quebec, 4.50% Dec. 01 20 Province of Quebec, 4.25% Dec. 01 21 Province of Saskatchewan, 5.75% Mar. 05 29 Corporate (11.2%) 407 International Inc., 4.30% May 26 21, Series 10-A3 AltaGas Income Trust, 7.42% Apr. 29 14 AltaGas Income Trust, 6.94% Jun. 29 16 AltaGas Income Trust, 5.49% Mar. 27 17 AltaGas Ltd., 4.10% Mar. 24 16, Series 5 AltaGas Ltd., 4.60% Jan. 15 18 AltaLink, L.P., 5.43% Jun. 05 13, Series 03-2 Barrick North America Finance LLC, 4.40% May 30 21 Baytex Energy Corp., 6.75% Feb. 17 16, Series B Bell Canada, 3.60% Dec. 02 15 Bell Canada, 3.65% May 19 16, Series M-23 Bell Canada, 4.40% Mar. 16 18, Series M-22 Brookfield Asset Management Inc., 8.95% Jun. 02 14 Brookfield Asset Management Inc., 5.30% Mar. 01 21 Brookfield Renewable Power Fund, 5.14% Oct. 13 20 Cadillac Fairview Finance Trust, 3.24% Jan. 25 16 Centra Gas Ontario Inc., 8.65% Oct. 19 18 CI Investments Inc., 3.94% Dec. 14 15

9,556 13,851 41,468 23,474 27,355 13,369 5,239 10,169 3,986 1,247 2,974 542

$9,561 13,917 42,408 23,077 27,869 13,664 5,525 10,899 4,152 1,260 3,793 586 156,711 2,739 2,988 14,311 638 5,557 1,459 8,697 4,253 10,225 3,779 15,808 1,420 4,375 1,601 7,583 85,433 1,235 995 3,467 3,225 2,439 1,945 1,070 3,528 704 4,112 1,788 5,034 744 3,857 4,937 3,314 2,660 2,976

$9,559 13,915 42,807 23,493 28,239 13,601 5,660 10,792 4,134 1,262 3,877 587 157,926 2,794 2,978 14,411 650 5,597 1,497 8,696 4,201 10,395 3,917 16,016 1,517 4,406 1,628 7,712 86,415 1,252 986 3,451 3,323 2,469 1,970 1,059 3,467 706 4,168 1,800 5,116 741 3,879 4,972 3,360 2,640 3,012

2,530 2,864 14,436 600 4,700 1,442 8,715 3,964 9,801 3,778 15,818 1,460 4,184 1,586 6,402

USD USD

1,235 889 3,049 3,127 2,447 1,950 997 3,612 705 4,119 1,789 5,035 646 3,859 4,968 3,314 2,046 2,975

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

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Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENT OF INVESTMENTS (contd)As at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

BONDS AND DEBENTURES (32.0%) (contd) Canadian Bonds and Debentures (31.3%) (contd) Corporate (11.2%) (contd) CU Inc., 6.80% Aug. 13 19 Emera Inc., 4.10% Oct. 20 14, Series F Emera Inc., 4.83% Dec. 02 19, Series G Enbridge Gas Distribution Inc., 4.04% Nov. 23 20 Enbridge Inc., 5.17% May 19 16 Enbridge Inc., 4.26% Feb. 01 21 EnCana Corporation, 5.80% Jan. 18 18 First Capital Realty Inc., 5.85% Jan. 31 17, Series H First Capital Realty Inc., 4.95% Nov. 30 18, Series K First Capital Realty Inc., 5.60% Apr. 30 20, Series M Greater Toronto Airports Authority, 4.85% Jun. 01 17 H&R Real Estate Investment Trust, 4.778% Jul. 27 16, Series D Institutional Mortgage Securities Canada Inc., 4.697% Feb. 12 21, Series 2011-1, Class A2 Inter Pipeline (Corridor) Inc., 4.897% Feb. 03 20, Series C Inter Pipeline Fund, 4.967% Feb. 02 21 Interprovincial Pipeline Ltd., 8.20% Feb. 15 24, Series K Lower Mattagami Energy Limited Partnership, 4.331% May 18 21 OMERS Realty Corporation, 5.48% Dec. 31 12, Series A Pembina Pipeline Corporation, 4.89% Mar. 29 21 Rogers Communications Inc., 5.80% May 26 16 Rogers Communications Inc., 4.70% Sep. 29 20 Rogers Communications Inc., 5.34% Mar. 22 21 Shaw Communications Inc., 6.50% Jun. 02 14 Shaw Communications Inc., 5.50% Dec. 07 20 Suncor Energy Inc., 5.80% May 22 18 TELUS Corporation, 3.65% May 25 16 TELUS Corporation, 5.05% Jul. 23 20, Series CH Thomson Reuters Corporation, 4.35% Sep. 30 20 Union Gas Limited, 11.50% Aug. 28 15, Series 1990 Veresen Inc., 5.60% Jul. 28 14 Vermilion Energy Inc., 6.50% Feb. 10 14 Vid otron Lt e, 6.875% Jun. 15 16 e e Viterra Inc., 8.50% Jul. 07 12 Viterra Inc., 6.406% Feb. 16 21, Series 2011-1 Westcoast Energy Inc., 3.28% Jan. 15 16 Foreign Bonds and Debentures (0.7%) Australia (0.1%) Sydney Airport Finance Company Pty Ltd, 4.602% Jul. 27 18, Restricted South Korea (0.2%) Korea Gas Corporation, 4.58% May 12 16 United States (0.4%) Anheuser-Busch InBev Worldwide Inc., 3.65% Jan. 15 16 EQUITIES (65.2%) Canada (31.3%) ARC Resources Ltd. Barrick Gold Corporation Brampton Brick Limited, Class A, Subordinated Voting Canadian Natural Resources Limited Canadian Oil Sands Limited Cenovus Energy Inc. Crescent Point Energy Corp. EnCana Corporation Goldcorp Inc. High Liner Foods Incorporated

374 455 2,759 1,600 2,136 2,527 3,171 1,399 6,312 2,329 341 1,680 1,581 365 3,156 1,061 2,254 5,000 1,751 1,032 3,835 4,642 612 3,154 4,735 1,949 5,729 3,355 1,342 4,519 1,137 1,002 1,745 1,344 3,769

$440 471 2,907 1,595 2,359 2,526 3,424 1,468 6,343 2,332 354 1,683 1,581 373 3,150 1,436 2,255 5,321 1,751 1,127 3,833 4,646 674 3,142 5,159 1,942 5,714 3,418 1,822 4,823 1,154 1,002 1,887 1,357 3,770 135,269

$451 472 2,869 1,605 2,318 2,509 3,549 1,491 6,289 2,358 367 1,709 1,621 381 3,258 1,434 2,277 5,264 1,795 1,128 3,739 4,674 667 3,156 5,280 1,958 5,821 3,373 1,774 4,791 1,156 1,007 1,881 1,413 3,795 136,001

1,770 2,225 4,233

1,770 2,225 4,229

1,769 2,253 4,295

1,075,224 1,166,100 827,800 788,500 1,161,000 73,000 926,102 1,109,800 478,100 1,345,473

18,870 25,633 8,862 18,133 41,020 2,556 26,818 33,727 21,026 11,965

26,848 50,924 3,518 31,784 32,253 2,651 41,119 32,961 22,241 21,406


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Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENT OF INVESTMENTS (contd)As at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

EQUITIES (65.2%) (contd) Canada (31.3%) (contd) Infinity Income Trust* Ivanhoe Nickel & Platinum Ltd., Restricted* Potash Corporation of Saskatchewan Inc. Royal Bank of Canada Viterra Inc. Westshore Terminals Investment Corporation, Units Ireland (1.6%) Accenture PLC, Class A Netherlands (1.2%) Gemalto NV Switzerland (3.5%) ABB Ltd. Compagnie Financi` re Richemont SA e United States (27.6%) 3M Company Allied Nevada Gold Corp. American Natural Energy Corporation, Restricted Apple Inc. Bank of America Corporation Baxter International Inc. Ecolab Inc. Emerson Electric Co. Fiserv, Inc. JPMorgan Chase & Co. Procter & Gamble Company (The) Starwood Hotels & Resorts Worldwide, Inc. Symantec Corporation United Parcel Service, Inc., Class B Visa Inc., Class A AVERAGE COST AND FAIR VALUE OF INVESTMENTS (97.2%) TRANSACTION COSTS (0.0%) (Note 2) TOTAL AVERAGE COST AND FAIR VALUE OF INVESTMENTS (97.2%) UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS (0.1%) UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTS (0.0%) UNREALIZED GAIN (LOSS) ON OTHER DERIVATIVES (0.0%) CASH AND CASH EQUIVALENTS (BANK OVERDRAFT) (2.7%) Canadian Foreign Short-Term Investments Bank of Montreal, Term Deposit, 1.00%, Jul. 04 11 Bank of Nova Scotia, Term Deposit, 0.95%, Jul. 04 11 OTHER NET ASSETS (LIABILITIES) (0.0%) NET ASSETS (100.0%)

50,000 121,332 541,371 499,300 2,709,000 1,172,400

$ 804 18,992 27,909 29,402 10,261 295,978 16,940 14,648 26,251 4,843 31,094 33,891 21,304 714 8,589 36,307 8,256 17,262 8,449 19,919 41,557 34,616 5,769 17,831 25,967 25,175 305,606 1,049,903 (325) 1,049,578 862 635

$1 2,123 29,727 27,457 28,228 27,962 381,203 19,916 15,034 37,672 4,966 42,638 36,137 52,202 162 18,993 23,525 9,109 18,518 7,542 21,284 37,266 32,597 5,437 18,918 26,343 27,527 335,560 1,183,010 1,183,010 1,446 (1) (14) 862 619 13,946 17,046 32,473 54 $1,216,968

341,900 326,200 1,507,700 78,700

395,200 1,542,600 1,051,096 58,700 2,228,100 158,400 340,800 139,100 352,500 944,700 532,200 100,600 995,900 374,600 338,800

13,946 17,046

13,946 17,046 32,489 54 $1,082,121

Average cost or fair values of some securities may include non-zero amounts that are rounded to zero. Where applicable, distributions received from holdings as a return of capital are used to reduce the adjusted cost base of the securities in the portfolio. * These securities have no quoted market values and are valued using valuation techniques.


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Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENT OF INVESTMENTS (contd)As at June 30, 2011

Schedule of Derivative Instruments (Note 2)Unrealized Gain on Forward Currency Contracts:Counterparty Credit Rating Delivery Currency Par Value Currency Par Value Date Bought (Local-000s) Sold (Local-000s) Contract Price Market Price Unrealized Gain (000s)

Barclays Bank PLC Barclays Bank PLC Barclays Bank PLC

A+ A+ A+

27-Jul-11 27-Jul-11 27-Jul-11

CAD CAD CAD

25,497 8,212 215,640

(CHF) (EUR) (USD)

(22,166) (5,858) (222,100)

0.869 0.713 1.030

0.872 0.714 1.036

$77 9 1,360 $1,446

Unrealized Loss on Forward Currency Contracts:Counterparty Credit Rating Delivery Currency Par Value Currency Par Value Date Bought (Local-000s) Sold (Local-000s) Contract Price Market Price Unrealized Loss (000s)

Barclays Bank PLC

A+

27-Jul-11

EUR

650

(CAD)

(911)

1.402

1.400

$(1) $(1)

Unrealized Gain (Loss) on Other Derivatives:Credit Rating Termination Date Notional Amount Variable Rate % Unrealized Gain (Loss) (000s)

Credit-default Swaps

Counterparty

MARKIT CDX.NA.IG.15 MARKIT CDX.NA.HY.16

Bank of America Merrill Lynch Bank of America Merrill Lynch

A A

20-Dec-15 20-Jun-16

USD 1,132,367 USD 1,138,134

1.000 1.000

(10) (4) (14)

Portfolio ConcentrationAs a Percentage of Net Assets (%) June 30, 2011 June 30, 2010

BONDS AND DEBENTURES Canadian Bonds and Debentures Federal Provincial Corporate Foreign Bonds and Debentures Australia South Korea United States EQUITIES Canada Ireland Netherlands Switzerland United States CASH AND CASH EQUIVALENTS (BANK OVERDRAFT)

32.0 13.0 7.1 11.2 0.1 0.2 0.4 65.2 31.3 1.6 1.2 3.5 27.6 2.7

31.5 28.0 2.3 1.2 62.5 36.8 3.5 22.2 6.8


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Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)DISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTSAs at June 30, 2011

Risk ManagementDynamic Blue Chip Balanced Fund (the Fund) aims to maximize returns and provide long-term growth of capital consistent with preserving capital and providing income by investing primarily in a full range of equity and fixed income securities. The investment activities of the Fund expose it to a variety of financial risks (for a general discussion of these risks see Note 7 of the financial statements). The Statement of Investments of the Fund groups the securities held by asset type, geographic region and/or market segment. The Manager seeks to minimize potential adverse effects of these risks on the Funds performance by employing and overseeing professional and experienced portfolio advisors that regularly monitor the Funds optimal asset mix and market events, as well as diversify the investment portfolio within the constraints of the investment objective. To assist in managing risks, the Manager has established and maintains a governance structure that oversees the Funds investment activities and monitors compliance with the Funds stated investment objectives and guidelines. Significant risks that are relevant to the Fund are discussed below. Credit Risk Credit risk is the risk that a counterparty to a financial instrument will fail to discharge a commitment that it has entered into with the Fund. The fair value of a financial instrument takes into account the credit rating of its issuer, and accordingly, represents the maximum credit risk exposure of the Fund. Credit risk arising on debt instruments is mitigated by investing primarily in rated instruments issued by approved counterparties. Credit ratings are reviewed regularly by the Manager. In instances where a holdings credit rating were to fall below the approved rating, the Manager would take appropriate action. As at June 30, 2011 and June 30, 2010, the Fund invested in debt instruments and derivatives, as applicable, with the following credit ratings:Percentage of Net Assets Credit Ratings* June 30, 2011 June 30, 2010

AAA Aa2 AA A+ A A2 A BBB+ Baa1 BBB BBB Baa3 BB BB Total* Excludes cash.

16.3 0.1 5.1 2.0 0.4 0.2 2.0 3.5 0.2 3.1 0.6 0.8 0.1 0.2 34.6

28.3 8.4 (0.2) 0.3 0.7 0.1 37.6

Interest Rate Risk The following table summarizes the Funds exposure to interest rate risks as at June 30, 2011 and June 30, 2010.Fair Value (in 000s) Maturity Date* June 30, 2011 June 30, 2010

3 months or less Over 3 months to 1 year Over 1 year to 5 years Over 5 years Total* Earlier of maturity date or interest reset date. Excludes cash and overdrafts.

$63,162 147,337 209,152 $419,651

$83,787 299,320 69,071 $452,178

If prevailing interest rates had been raised or lowered by 1%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $21,488,000 (June 30, 2010 $15,886,000). In practice, actual results will differ from this sensitivity analysis as the components of the Funds portfolio are not identical to the components of the market and the difference could be material.


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Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)DISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (contd)As at June 30, 2011

Other Price Risk Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting a market or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2011, approximately 65% (June 30, 2010 62%) of the Funds net assets were exposed to other price risk. If prices of these investments had decreased or increased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $39,717,000 (June 30, 2010 $36,909,000). In practice, actual results will differ from this sensitivity analysis and the difference could be material. Currency Risk The Fund held financial instruments denominated in currencies other than the Canadian dollar, the functional currency, including the underlying principal amounts of forward currency contracts and foreign cash and cash equivalents, if applicable. Therefore the Fund is exposed to currency risk as the value of the securities denominated in other currencies will fluctuate due to changes in foreign exchange rates. Major currencies the Fund had exposure to as at June 30, 2011 and June 30, 2010 are as follows:Percentage of Net Assets Currency June 30, 2011 June 30, 2010

US Dollar Swiss Franc Euro Total

8.0 1.5 0.6 10.1

6.2 1.2 7.4

If the Canadian dollar strengthened or weakened by 1% in relation to all other currencies, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $1,234,000 (June 30, 2010 $877,000). In practice, actual results will differ from this sensitivity analysis and the difference could be material.

Financial InstrumentsFair Value Hierarchy The following table summarizes the fair value hierarchy of the Funds financial assets and liabilities (financial instruments) as at June 30, 2011 and June 30, 2010. Further details of the required disclosures are provided in Note 8 of the financial statements.June 30, 2011 (In 000s) Level 1 Level 2 Level 3 Total Level 1 June 30, 2010 Level 2 Level 3 Total

Equities Preferred shares Bonds and debentures Underlying funds Warrants Purchased options Total Investments Short-term investments Derivative assets Derivative liabilities Total Financial Instruments

$734,555 734,555 $734,555

$57,672 388,659 446,331 30,992 1,446 (15) $478,754

$2,124 $794,351 388,659 2,124 1,183,010 30,992 1,446 (15) $2,124 $1,215,433

$695,890 695,890 $695,890

$40,952 372,371 76 413,399 79,807 2,083 (8,871) $486,418

$63 $736,905 372,371 1,198 1,274 1,261 1,110,550 79,807 2,083 (8,871) $1,261 $1,183,569

Transfers Between Levels During the periods ended June 30, 2011 and June 30, 2010, there were no transfers between Level 1 and Level 2.


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Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)DISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (contd)As at June 30, 2011

Reconciliation of Level 3 Financial Instruments The following table presents the movement in the Funds Level 3 financial instruments for the period ended June 30, 2011 and June 30, 2010.June 30, 2011 (In 000s) Equities Other Total Equities June 30, 2010 Other Total

Beginning of period Purchases Sales Transfers into Level 3 Transfers out of Level 3 Net realized gains (losses) Net change in unrealized appreciation (depreciation)* End of period*

$1,261 863 $2,124

$ $

$1,261 863 $2,124

$8,783 (7,970) 448 $1,261

$ $

$8,783 (7,970) 448 $1,261

Net change in unrealized appreciation (depreciation) for Level 3 financial instruments held as at June 30, 2011 and June 30, 2010, was $1,318,000 and $448,000, respectively.

The net realized gains (losses) in the table above are reflected in the Statement of Operations in Net realized gain (loss) on sale of investments. The net change in unrealized appreciation (depreciation) relates to those financial instruments held by the Fund as at June 30, 2011 and June 30, 2010, and are reflected in the Statement of Operations in Change in unrealized appreciation (depreciation) in value of investments. If the significant unobservable inputs used in determining fair value of the Funds Level 3 financial instruments decreased or increased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $106,000 (June 30, 2010 $63,000).


-9-

Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENTS OF NET ASSETSAs at (in 000s of Canadian dollars except number of units and per unit amounts) June 30, 2011 June 30, 2010

STATEMENTS OF OPERATIONSFor the periods ended (Note 1) (in 000s of Canadian dollars except per unit amounts) June 30, 2011 June 30, 2010

Assets Investments, at fair value* Cash and short-term investments Margin deposited on derivatives Unrealized gain on forward currency contracts Unrealized gain on other derivatives Receivable for investment securities sold Subscriptions receivable Accrued interest, dividends and other Liabilities Bank overdraft Unrealized loss on forward currency contracts Unrealized loss on other derivatives Liability for written options Payable for investment securities purchased Redemptions payable Management fee payable Accrued expenses Distributions payable to unitholders Net assets representing unitholders equity (Note 5) *Investments, at average cost Net assets per series Series A Series F Series FT Series G Series I Series O Series T

$1,183,010 32,373 100 1,446 14,340 1,372 4,068 1,236,709 1 14 14,973 2,463 2,040 249 19,741

$1,110,550 80,347 2,083 1,012 2,850 1,196,842 8,871 2,149 1,981 194 2 13,197

Investment income Interest Dividends Income (loss) on derivatives Foreign withholding taxes Expenses (Note 4) Management fees Directors and trustees fees Independent Review Committee fees Unitholder reporting costs Unitholder administration costs Custodian fees and bank charges Audit fees Legal fees Filing fees Transaction costs (Note 2) Expenses absorbed by the Manager Net investment income (loss) Realized and unrealized gain (loss) on investments Net realized gain (loss) on sale of investments Net realized and change in unrealized foreign exchange gain (loss) Change in unrealized derivatives gain (loss) Change in unrealized appreciation (depreciation) in value of investments Net gain (loss) on investments Increase (decrease) in net assets from operations

$18,266 13,668 17 (658) 31,293 25,543 20 1 183 1,690 142 34 15 46 643 28,317 28,317 2,976

$20,945 11,155 (549) 31,551 24,292 25 1 201 1,958 140 36 13 61 854 27,581 27,581 3,970

$1,216,968 $1,183,645 $1,049,578 $995,631

88,948 6,165 8,219 18,513 121,845 $124,821

67,354 15,297 (2,784) 28,077 107,944 $111,914

$736,082 $1,101,910 12,537 9,361 6 n/a 381,858 n/a 21,358 19,517 41,835 31,618 23,292 21,239 $1,216,968 $1,183,645

Number of units outstanding (Note 5) Series A Series F Series FT Series G Series I Series O Series T Net assets per unit (Note 2) Series A Series F Series FT Series G Series I Series O Series T

58,171,966 94,192,712 1,710,830 1,377,991 523 n/a 30,155,409 n/a 3,549,620 3,385,954 3,868,599 3,191,214 5,215,054 5,007,658 $12.65 $7.33 $10.65 $12.66 $6.02 $10.81 $4.47 $11.70 $6.79 n/a n/a $5.76 $9.91 $4.24

Increase (decrease) in net assets from operations per series Series A Series F Series FT Series G Series I Series O Series T

$121,602 1,123 1 (6,861) 2,487 4,256 2,213 $124,821

$103,913 801 n/a n/a 6,379 (938) 1,759 $111,914

Increase (decrease) in net assets from operations per unit (Note 2) Series A Series F Series FT Series G Series I Series O Series T

$1.52 $0.74 $1.11 $(0.30) $0.73 $1.25 $0.44

$1.07 $0.61 n/a n/a $0.83 $(0.83) $0.37


- 10 -

Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENTS OF CHANGES IN NET ASSETSFor the periods ended (Note 1) All Series (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars) June 30, 2011 Series A June 30, 2010

Net assets, beginning of period Increase (decrease) in net assets from operations Distributions to unitholders From net investment income From net realized gain on investments From return of capital Capital transactions Proceeds from issue Reinvested distributions Payments on redemption Increase (decrease) in net assets Net assets, end of period

$1,183,645 124,821 (1,652) (27,611) (1,004) (30,267)

$1,152,300 111,914 (4,054) (844) (4,898)


$1,101,910 121,602 (28) (25,323) (25,351)

$1,081,423 103,913 (3,225) (3,225)

538,514 182,193 28,575 4,057 (628,320) (261,921) (61,231) (75,671) 33,323 31,345 $1,216,968 $1,183,645

100,183 134,226 24,596 3,130 (586,858) (217,557) (462,079) (80,201) (365,828) 20,487 $736,082 $1,101,910

Series F (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars)

Series FT June 30, 2011


$9,361 1,123 (129) (263) (392) 4,362 374 (2,291) 2,445 3,176 $12,537

$7,255 801 (64) (64) 3,164 60 (1,855) 1,369 2,106 $9,361


$ 1 5 5 6 $6

Series G (in 000s of Canadian dollars) June 30, 2011 (in 000s of Canadian dollars) June 30, 2011

Series I June 30, 2010


$ (6,861) (392) (392) 415,129 382 (26,400) 389,111 381,858 $381,858


$19,517 2,487 (805) (824) (1,629) 4,928 1,562 (5,507) 983 1,841 $21,358

$45,528 6,379 (610) (610) 5,741 602 (38,123) (31,780) (26,011) $19,517


- 11 -

Dynamic Blue Chip Balanced Fund (formerly Dynamic Focus+ Balanced Fund)STATEMENTS OF CHANGES IN NET ASSETS (contd)For the periods ended (Note 1) Series O (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars) June 30, 2011 Series T June 30, 2010


$31,618 4,256 (689) (704) (1,393) 9,268 1,393 (3,307) 7,354 10,217 $41,835

$ (938) 33,130 (574) 32,556 31,618 $31,618


$21,239 2,213 (1) (497) (612) (1,110) 4,639 268 (3,957) 950 2,053 $23,292

$18,094 1,759 (155) (844) (999) 5,932 265 (3,812) 2,385 3,145 $21,239


- 12 -

6DEC201011575525


Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund)STATEMENT OF INVESTMENTSAs at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

EQUITIES (92.8%) Canada (46.5%) ARC Resources Ltd. Barrick Gold Corporation Brampton Brick Limited, Class A, Subordinated Voting Canadian Natural Resources Limited Canadian Oil Sands Limited Cenovus Energy Inc. Crescent Point Energy Corp. EnCana Corporation Goldcorp Inc. High Liner Foods Incorporated Infinity Income Trust* Osisko Mining Corporation Potash Corporation of Saskatchewan Inc. Royal Bank of Canada Viterra Inc. Westshore Terminals Investment Corporation, Units Ireland (3.0%) Accenture PLC, Class A Netherlands (1.7%) Gemalto NV Switzerland (5.0%) ABB Ltd. Compagnie Financi` re Richemont SA e United States (36.6%) 3M Company Allied Nevada Gold Corp. Apple Inc. Bank of America Corporation Baxter International Inc. Ecolab Inc. Emerson Electric Co. Fiserv, Inc. JPMorgan Chase & Co. Procter & Gamble Company (The) Starwood Hotels & Resorts Worldwide, Inc. Symantec Corporation United Parcel Service, Inc., Class B Visa Inc., Class A AVERAGE COST AND FAIR VALUE OF INVESTMENTS (92.8%)

618,318 527,200 252,820 405,000 592,200 40,100 485,255 587,100 248,000 576,000 100,000 1,315,340 286,386 268,400 1,411,400 600,000

$10,780 14,894 3,287 14,697 19,068 1,404 13,895 17,935 10,308 5,095 6,695 10,897 15,109 15,859 3,473 163,396 11,539 7,486 14,080 2,585 16,665 17,865 5,930 4,481 19,731 4,998 9,077 4,448 11,310 22,068 19,465 3,161 10,336 16,149 14,995 164,014 363,100

$15,439 23,023 1,074 16,326 16,451 1,456 21,545 17,437 11,537 9,164 1 19,664 15,725 14,759 14,707 14,310 212,618 13,567 7,688 20,004 2,650 22,654 19,010 7,655 11,227 13,179 5,515 9,759 3,974 12,149 20,039 17,934 2,983 10,905 16,308 16,448 167,085 423,612

232,900 166,800 800,600 42,000

207,900 226,200 34,700 1,248,200 95,900 179,600 73,300 201,200 508,000 292,800 55,200 574,100 231,900 202,400


- 13 -

Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund)STATEMENT OF INVESTMENTS (contd)As at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

TRANSACTION COSTS (0.0%) (Note 2) TOTAL AVERAGE COST AND FAIR VALUE OF INVESTMENTS (92.8%) UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS (0.2%) UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTS (0.0%) UNREALIZED GAIN (LOSS) ON OTHER DERIVATIVES (0.0%) CASH AND CASH EQUIVALENTS (BANK OVERDRAFT) (7.0%) Canadian Foreign Short-Term Investments Bank of Montreal, Term Deposit, 1.00%, Jul. 04 11 Bank of Nova Scotia, Term Deposit, 0.95%, Jul. 04 11 OTHER NET ASSETS (LIABILITIES) (0.0%) NET ASSETS (100.0%)

$(310) 362,790 516 218 14,031 17,148 14,031 17,148 31,913 503 $395,206

$ 423,612 793 516 212 14,031 17,148 31,907 503 $456,815

Average cost or fair values of some securities may include non-zero amounts that are rounded to zero. Where applicable, distributions received from holdings as a return of capital are used to reduce the adjusted cost base of the securities in the portfolio. * These securities have no quoted market values and are valued using valuation techniques.

Schedule of Derivative Instruments (Note 2)Unrealized Gain on Forward Currency Contracts:Counterparty Credit Rating Delivery Currency Par Value Currency Par Value Date Bought (Local-000s) Sold (Local-000s) Contract Market Price Price Unrealized Gain (000s)

Barclays Bank PLC Barclays Bank PLC Barclays Bank PLC

A+ 27-Jul-11 A+ 27-Jul-11 A+ 27-Jul-11

CAD CAD CAD

13,578 4,193 118,588

(CHF) (EUR) (USD)

(11,804) (2,991) (122,140)

0.869 0.713 1.030

0.872 0.714 1.036

$41 4 748 $793

Unrealized Loss on Forward Currency Contracts:Counterparty Credit Rating Delivery Currency Par Value Currency Par Value Date Bought (Local-000s) Sold (Local-000s) Contract Market Price Price Unrealized Loss (000s)

Barclays Bank PLC

A+

27-Jul-11

EUR

350

(CAD)

(491)

1.402

1.400

$0 $0


EQUITIES Canada Ireland Netherlands Switzerland United States CASH AND CASH EQUIVALENTS (BANK OVERDRAFT)

92.8 46.5 3.0 1.7 5.0 36.6 7.0

80.4 48.2 7.9 24.3 20.4


- 14 -

Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund)DISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTSAs at June 30, 2011

Risk ManagementDynamic Blue Chip Equity Fund (the Fund) aims to achieve long-term capital growth by investing primarily in equity securities of businesses around the world. At any point in time, a substantial position of the funds assets may be held in one asset class or country depending on the portfolio advisors view of capital markets. The investment activities of the Fund expose it to a variety of financial risks (for a general discussion of these risks see Note 7 of the financial statements). The Statement of Investments of the Fund groups the securities held by asset type, geographic region and/or market segment. The Manager seeks to minimize potential adverse effects of these risks on the Funds performance by employing and overseeing professional and experienced portfolio advisors that regularly monitor the Funds optimal asset mix and market events, as well as diversify the investment portfolio within the constraints of the investment objective. To assist in managing risks, the Manager has established and maintains a governance structure that oversees the Funds investment activities and monitors compliance with the Funds stated investment objectives and guidelines. Significant risks that are relevant to the Fund are discussed below. Credit Risk The Fund had no significant exposure to debt instruments or derivatives as at June 30, 2011 and June 30, 2010. In addition, all investment transactions are executed by brokers with an approved credit rating. As such the risk of default on transactions with counterparties and brokers related to purchase and sale of securities is considered minimal. In instances where the credit rating were to fall below the approved rating, the Manager would take appropriate action. Interest Rate Risk The majority of the Funds financial assets and liabilities were non-interest bearing as at June 30, 2011 and June 30, 2010. Accordingly, the Fund is not directly subject to significant risk due to fluctuations in the prevailing levels of market interest rates. Other Price Risk Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting a market or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2011, approximately 93% (June 30, 2010 80%) of the Funds net assets were exposed to other price risk. If prices of these investments had decreased or increased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $21,181,000 (June 30, 2010 $14,786,000). In practice, actual results will differ from this sensitivity analysis and the difference could be material. Currency Risk The Fund held financial instruments denominated in currencies other than the Canadian dollar, the functional currency, including the underlying principal amounts of forward currency contracts and foreign cash and cash equivalents, if applicable. Therefore the Fund is exposed to currency risk as the value of the securities denominated in other currencies will fluctuate due to changes in foreign exchange rates. Major currencies the Fund had exposure to as at June 30, 2011 and June 30, 2010 are as follows:Percentage of Net Assets Currency June 30, 2011 June 30, 2010


12.4 2.1 0.9 15.4

7.6 3.1 10.7

If the Canadian dollar strengthened or weakened by 1% in relation to all other currencies, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $703,000 (June 30, 2010 $391,000). In practice, actual results will differ from this sensitivity analysis and the difference could be material.


- 15 -

Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund)DISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (contd)As at June 30, 2011



$393,269 393,269 $393,269

$30,342 30,342 31,179 793 $62,314

$1 1 $1

$423,612 423,612 31,179 793 $455,584

$266,624 266,624 $266,624

$29,060 25 29,085 74,627 835 (4,012) $100,535

$3 3 $3

$295,687 25 295,712 74,627 835 (4,012) $367,162

Transfers Between Levels During the periods ended June 30, 2011 and June 30, 2010, there were no transfers between Level 1 and Level 2. Reconciliation of Level 3 Financial Instruments The following table presents the movement in the Funds Level 3 financial instruments for the period ended June 30, 2011 and June 30, 2010.June 30, 2011 (In 000s) Equities Other Total Equities June 30, 2010 Other Total

Beginning of period Purchases Sales Transfers into Level 3 Transfers out of Level 3 Net realized gains (losses) Net change in unrealized appreciation (depreciation)* End of period

$3 (2) $1

$ $

$3 (2) $1

$2,023 (1,993) (27) $3

$ $

$2,023 (1,993) (27) $3

* Net change in unrealized appreciation (depreciation) for Level 3 financial instruments held as at June 30, 2011 and June 30, 2010, was $(2,000) and $(27,000), respectively.

The net realized gains (losses) in the table above are reflected in the Statement of Operations in Net realized gain (loss) on sale of investments. The net change in unrealized appreciation (depreciation) relates to those financial instruments held by the Fund as at June 30, 2011 and June 30, 2010, and are reflected in the Statement of Operations in Change in unrealized appreciation (depreciation) in value of investments. If the significant unobservable inputs used in determining fair value of the Funds Level 3 financial instruments decreased or increased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately nil (June 30, 2010 nil).


- 16 -

Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund)STATEMENTS OF NET ASSETSAs at (in 000s of Canadian dollars except number of units and per unit amounts) June 30, 2011 June 30, 2010


Assets Investments, at fair value* Cash and short-term investments Margin deposited on derivatives Unrealized gain on forward currency contracts Unrealized gain on other derivatives Receivable for investment securities sold Subscriptions receivable Accrued interest, dividends and other Liabilities Bank overdraft Unrealized loss on forward currency contracts Unrealized loss on other derivatives Liability for written options Payable for investment securities purchased Redemptions payable Management fee payable Accrued expenses Distributions payable to unitholders Net assets representing unitholders equity (Note 5) *Investments, at average cost Net assets per series Series A Series F Series G Series I Series O

$423,612 31,907 793 1,648 553 904 459,417 1,616 537 384 65 2,602 $456,815 $362,790

$295,712 75,046 835 762 757 373,112 4,012 544 377 49 4,982 $368,130 $263,049


$2,068 6,599 (310) 8,357 4,863 4 1 47 436 17 20 4 23 291 5,706 5,706 2,651

$2,951 5,329 (338) 7,942 4,698 5 1 49 481 14 20 3 25 313 5,609 5,609 2,333

17,715 3,010 3,970 28,159 52,854 $55,505

15,165 8,238 (954) 19,438 41,887 $44,220

$161,001 4,530 53,797 234 237,253 $456,815

$211,089 3,066 n/a 443 153,532 $368,130

Number of units outstanding (Note 5) Series A Series F Series G Series I Series O Net assets per unit (Note 2) Series A Series F Series G Series I Series O

12,073,406 17,746,129 572,825 436,743 4,026,489 n/a 36,076 73,819 33,147,626 24,274,978 $13.34 $7.91 $13.36 $6.49 $7.16 $11.89 $7.02 n/a $5.99 $6.32

Increase (decrease) in net assets from operations per series Series A Series F Series G Series I Series O

$30,073 513 (1,991) 59 26,851 $55,505

$28,236 361 n/a 67 15,556 $44,220

Increase (decrease) in net assets from operations per unit (Note 2) Series A Series F Series G Series I Series O

$1.96 $1.00 $(0.67) $1.15 $0.94

$1.49 $0.87 n/a $0.87 $0.78


- 17 -

Dynamic Blue Chip Equity Fund (formerly Dynamic Focus+ Equity Fund)STATEMENTS OF CHANGES IN NET ASSETSFor the periods ended (Note 1) All Series (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars) June 30, 2011 Series A June 30, 2010


$368,130 55,505 (2,561) (6,126) (8,687) 132,239 8,654 (99,026) 41,867 88,685 $456,815

$305,071 44,220 (2,380) (2,380) 63,376 2,376 (44,533) 21,219 63,059 $368,130


$211,089 30,073 (3,045) (3,045) 7,816 3,013 (87,945) (77,116) (50,088) $161,001

$210,940 28,236 (306) (306) 9,631 302 (37,714) (27,781) 149 $211,089


Series G June 30, 2011


$3,066 513 (23) (57) (80) 2,416 79 (1,464) 1,031 1,464 $4,530

$2,364 361 (27) (27) 820 27 (479) 368 702 $3,066


$ (1,991) 58,622 (2,834) 55,788 53,797 $53,797

Series I (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars) June 30, 2011

Series O June 30, 2010


$443 59 (7) (9) (16) 16 (268) (252) (209) $234

$414 67 (12) (12) 10 12 (48) (26) 29 $443


$153,532 26,851 (2,531) (3,015) (5,546) 63,385 5,546 (6,515) 62,416 83,721 $237,253

$91,353 15,556 (2,035) (2,035) 52,915 2,035 (6,292) 48,658 62,179 $153,532


- 18 -

6DEC201011575525


Dynamic Dividend FundSTATEMENT OF INVESTMENTSAs at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

EQUITIES (90.0%) Canadian Equities Income Trusts (6.4%) Business Trusts (1.1%) Keg Royalties Income Fund (The) Pizza Pizza Royalty Income Fund Real Estate Investment Trusts (5.3%) Calloway Real Estate Investment Trust Dundee Real Estate Investment Trust, Series A H&R Real Estate Investment Trust, Stapled Units Australia (2.0%) BHP Billiton Limited, Sponsored ADR Canada (58.5%) ARC Resources Ltd. Astral Media Inc., Class A, Non-Voting Bank of Nova Scotia (The) Baytex Energy Corp. BCE Inc. Bonavista Energy Corporation Brookfield Asset Management Inc., Class A Canadian Helicopters Group Inc. Canadian National Railway Company Canadian Natural Resources Limited Crescent Point Energy Corp. Enbridge Inc. Enerplus Corporation First Capital Realty Inc. Innergex Renewable Energy Inc. Pembina Pipeline Corporation Pengrowth Energy Corporation Rogers Communications Inc., Class B Royal Bank of Canada Suncor Energy Inc. TELUS Corporation Thomson Reuters Corporation Toronto-Dominion Bank (The) TransCanada Corporation Vermilion Energy Inc. Whistler Blackcomb Holdings Inc. Ireland (2.1%) Accenture PLC, Class A Italy (1.8%) Terna SPA Switzerland (2.1%) ABB Ltd. United States (17.1%) Air Products and Chemicals, Inc. Emerson Electric Co. ITC Holdings Corp. JPMorgan Chase & Co.

195,000 395,000

$2,060 3,771 5,831 6,996 4,330 5,480 16,806 10,969 3,949 14,700 24,553 9,605 9,232 3,611 5,802 4,744 5,484 17,887 9,302 16,470 10,681 5,427 6,819 3,402 10,449 11,002 19,406 15,957 7,178 12,938 16,282 13,028 5,547 3,496 266,951 10,898 8,730 9,014 7,954 10,842 9,291 14,892

$2,570 3,527 6,097 13,493 4,601 10,810 28,904 10,945 5,547 13,656 30,566 11,998 14,183 4,691 9,377 12,110 5,967 16,648 10,624 20,091 11,441 5,790 10,921 3,549 10,689 12,392 20,401 15,494 8,840 13,018 22,056 15,055 9,753 3,373 318,230 11,650 9,995 11,369 8,108 10,844 11,768 13,215

536,483 142,285 501,641

120,000 222,159 367,000 527,000 228,887 375,000 165,000 293,500 509,700 77,500 413,000 239,283 642,512 375,859 352,000 1,095,430 140,000 883,385 325,600 371,000 411,208 166,602 360,000 269,700 356,754 191,757 291,300

200,000 2,230,000 455,000 88,000 200,000 170,000 335,000


- 19 -

Dynamic Dividend FundSTATEMENT OF INVESTMENTS (contd)As at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

EQUITIES (90.0%) (contd) United States (17.1%) (contd) McDonalds Corporation Norfolk Southern Corporation Northeast Utilities PepsiCo, Inc. Philip Morris International Inc. Southern Company (The) AVERAGE COST AND FAIR VALUE OF INVESTMENTS (90.0%) TRANSACTION COSTS (0.0%) (Note 2) TOTAL AVERAGE COST AND FAIR VALUE OF INVESTMENTS (90.0%) UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS (0.3%) UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTS (0.0%) UNREALIZED GAIN (LOSS) ON OTHER DERIVATIVES (0.0%) CASH AND CASH EQUIVALENTS (BANK OVERDRAFT) (9.4%) Canadian Foreign Short-Term Investments Bank of Montreal, Term Deposit, 1.00%, Jul. 04 11 Bank of Nova Scotia, Term Deposit, 0.95%, Jul. 04 11 OTHER NET ASSETS (LIABILITIES) (0.3%) NET ASSETS (100.0%)

176,500 83,000 225,000 40,100 39,900 412,000

$13,118 5,188 6,054 2,786 2,720 15,474 88,319 417,518 (405) 417,113 1,122 1,893

$14,344 5,994 7,633 2,721 2,568 16,040 93,235 490,425 490,425 1,817 (16) 1,122 1,893 21,634 26,442 51,091 1,004 $544,321

21,634 26,442

21,634 26,442 51,091 1,004 $469,208

Average cost or fair values of some securities may include non-zero amounts that are rounded to zero. Where applicable, distributions received from holdings as a return of capital are used to reduce the adjusted cost base of the securities in the portfolio.


Barclays Bank PLC Credit Suisse Securities (USA) LLC TD Waterhouse Canada Inc. TD Waterhouse Canada Inc. TD Waterhouse Canada Inc.

A+ 27-Jul-11 A 27-Jul-11 AA 17-Aug-11 AA 17-Aug-11 AA 17-Aug-11

CAD CAD CAD CAD CAD

7,543 7,834 6,513 80,779 7,488

(CHF) (EUR) (USD) (USD) (USD)

(6,557) (5,585) (6,695) (81,943) (7,706)

0.869 0.713 1.028 1.014 1.029

0.872 0.714 1.036 1.036 1.036

$23 13 51 1,680 50 $1,817


Barclays Bank PLC Credit Suisse Securities (USA) LLC TD Waterhouse Canada Inc.

A+ 27-Jul-11 A 27-Jul-11 AA 17-Aug-11

CHF EUR CAD

326 437 664

(CAD) (CAD) (EUR)

(382) (617) (476)

1.172 1.411 0.717

1.147 1.400 0.714

$(8) (5) (3) $(16)


- 20 -

Dynamic Dividend FundSTATEMENT OF INVESTMENTS (contd)As at June 30, 2011


EQUITIES Australia Canada Ireland Israel Italy Switzerland United States Canadian Equities Income Trusts Business Trusts Oil & Gas Royalty Trusts Real Estate Investment Trusts CASH AND CASH EQUIVALENTS (BANK OVERDRAFT)

90.0 2.0 58.5 2.1 1.8 2.1 17.1 1.1 5.3 9.4

82.8 47.8 1.9 1.5 3.0 14.0 2.4 7.7 4.5 17.0


- 21 -

Dynamic Dividend FundDISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTSAs at June 30, 2011

Risk ManagementDynamic Dividend Fund (the Fund) seeks to maximize dividend income through investment primarily in preferred and equity securities of Canadian companies. The investment activities of the Fund expose it to a variety of financial risks (for a general discussion of these risks see Note 7 of the financial statements). The Statement of Investments of the Fund groups the securities held by asset type, geographic region and/or market segment. The Manager seeks to minimize potential adverse effects of these risks on the Funds performance by employing and overseeing professional and experienced portfolio advisors that regularly monitor the Funds optimal asset mix and market events, as well as diversify the investment portfolio within the constraints of the investment objective. To assist in managing risks, the Manager has established and maintains a governance structure that oversees the Funds investment activities and monitors compliance with the Funds stated investment objectives and guidelines. Significant risks that are relevant to the Fund are discussed below. Credit Risk The Fund had no significant exposure to debt instruments or derivatives as at June 30, 2011 and June 30, 2010. In addition, all investment transactions are executed by brokers with an approved credit rating. As such the risk of default on transactions with counterparties and brokers related to purchase and sale of securities is considered minimal. In instances where the credit rating were to fall below the approved rating, the Manager would take appropriate action. Interest Rate Risk The majority of the Funds financial assets and liabilities were non-interest bearing as at June 30, 2011 and June 30, 2010. Accordingly, the Fund is not directly subject to significant risk due to fluctuations in the prevailing levels of market interest rates. Other Price Risk Other price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting a market or a market segment. Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2011, approximately 90% (June 30, 2010 83%) of the Funds net assets were exposed to other price risk. If prices of these investments had decreased or increased by 5%, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $24,521,000 (June 30, 2010 $18,852,000). In practice, actual results will differ from this sensitivity analysis and the difference could be material. Currency Risk The Fund held financial instruments denominated in currencies other than the Canadian dollar, the functional currency, including the underlying principal amounts of forward currency contracts and foreign cash and cash equivalents, if applicable. Therefore the Fund is exposed to currency risk as the value of the securities denominated in other currencies will fluctuate due to changes in foreign exchange rates. Major currencies the Fund had exposure to as at June 30, 2011 and June 30, 2010 are as follows:Percentage of Net Assets Currency June 30, 2011 June 30, 2010


4.5 0.8 0.4 5.7

3.9 1.1 0.1 5.1

If the Canadian dollar strengthened or weakened by 1% in relation to all other currencies, with all other variables held constant, net assets of the Fund would have decreased or increased, respectively, by approximately $312,000 (June 30, 2010 $231,000). In practice, actual results will differ from this sensitivity analysis and the difference could be material.


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Dynamic Dividend FundDISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (contd)As at June 30, 2011



$469,061 469,061 $469,061

$21,364 21,364 48,076 1,817 (16) $71,241

$ $

$490,425 490,425 48,076 1,817 (16) $540,302

$356,327 356,327 (9) $356,318

$20,722 20,722 76,070 1,162 (4,582) $93,372

$ $

$377,049 377,049 76,070 1,162 (4,591) $449,690

Transfers Between Levels During the periods ended June 30, 2011 and June 30, 2010, there were no transfers between Level 1 and Level 2.


- 23 -

Dynamic Dividend FundSTATEMENTS OF NET ASSETSAs at (in 000s of Canadian dollars except number of units and per unit amounts) June 30, 2011 June 30, 2010


Assets Investments, at fair value* Cash and short-term investments Margin deposited on derivatives Unrealized gain on forward currency contracts Unrealized gain on other derivatives Receivable for investment securities sold Subscriptions receivable Accrued interest, dividends and other Liabilities Bank overdraft Unrealized loss on forward currency contracts Unrealized loss on other derivatives Liability for written options Payable for investment securities purchased Redemptions payable Management fee payable Accrued expenses Distributions payable to unitholders Net assets representing unitholders equity (Note 5) *Investments, at average cost Net assets per series Series A Series F Series G Series I Series O Series T

$490,425 51,091 1,817 20 805 1,716 545,874 16 1,001 439 97 1,553 $544,321 $417,113

$377,049 77,425 1,162 3,029 1,100 1,331 461,096 4,582 9 432 859 387 66 1 6,336 $454,760 $344,777


$3,327 14,443 (516) 17,254 5,258 6 1 63 584 52 22 5 27 1,051 7,069 7,069 10,185

$4,294 10,768 (410) 14,652 4,862 8 1 66 647 38 22 4 31 1,006 6,685 6,685 7,967

33,015 253 5,221 41,040 79,529 $89,714

11,792 7,015 1,259 24,621 44,687 $52,654

$263,066 6,137 92,170 1,018 164,851 17,079 $544,321

$327,280 4,961 n/a 1,092 106,067 15,360 $454,760

Number of units outstanding (Note 5) Series A Series F Series G Series I Series O Series T Net assets per unit (Note 2) Series A Series F Series G Series I Series O Series T

28,454,453 41,236,407 895,732 844,907 9,965,897 n/a 163,516 204,676 26,849,995 20,144,801 3,758,043 3,777,911 $9.25 $6.85 $9.25 $6.22 $6.14 $4.54 $7.94 $5.87 n/a $5.34 $5.27 $4.07

Increase (decrease) in net assets from operations per series Series A Series F Series G Series I Series O Series T

$60,080 1,045 924 195 24,679 2,791 $89,714

$40,358 590 n/a 122 10,125 1,459 $52,654

Increase (decrease) in net assets from operations per unit (Note 2) Series A Series F Series G Series I Series O Series T

$1.66 $1.15 $0.12 $1.12 $1.06 $0.74

$0.92 $0.71 n/a $0.65 $0.59 $0.42


- 24 -

Dynamic Dividend FundSTATEMENTS OF CHANGES IN NET ASSETSFor the periods ended (Note 1) All Series (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars) June 30, 2011 Series A June 30, 2010


$454,760 89,714 (9,598) (5,497) (15,095) 173,511 13,635 (172,204) 14,942 89,561 $544,321

$421,378 52,654 (8,829) (5,519) (14,348) 68,761 12,979 (86,664) (4,924) 33,382 $454,760


$327,280 60,080 (5,256) (2,371) (7,627) 30,534 6,882 (154,083) (116,667) (64,214) $263,066

$330,348 40,358 (5,888) (3,425) (9,313) 29,303 8,418 (71,834) (34,113) (3,068) $327,280


Series G June 30, 2011


$4,961 1,045 (113) (40) (153) 1,749 129 (1,594) 284 1,176 $6,137

$4,935 590 (96) (42) (138) 1,122 124 (1,672) (426) 26 $4,961


$ 924 (902) (902) 97,352 844 (6,048) 92,148 92,170 $92,170

Series I (in 000s of Canadian dollars) June 30, 2011 June 30, 2010 (in 000s of Canadian dollars) June 30, 2011

Series O June 30, 2010


$1,092 195 (30) (9) (39) 335 39 (604) (230) (74) $1,018

$942 122 (30) (13) (43) 299 34 (262) 71 150 $1,092


$106,067 24,679 (4,018) (1,369) (5,387) 40,082 5,386 (5,976) 39,492 58,784 $164,851

$72,855 10,125 (2,641) (1,343) (3,984) 33,523 3,984 (10,436) 27,071 33,212 $106,067


- 25 -

Dynamic Dividend FundSTATEMENTS OF CHANGES IN NET ASSETS (contd)For the periods ended (Note 1) Series T (in 000s of Canadian dollars) June 30, 2011 June 30, 2010


$15,360 2,791 (181) (806) (987) 3,459 355 (3,899) (85) 1,719 $17,079

$12,298 1,459 (174) (696) (870) 4,514 419 (2,460) 2,473 3,062 $15,360


- 26 -

6DEC201011575525


Dynamic Dividend Income FundSTATEMENT OF INVESTMENTSAs at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

BONDS AND DEBENTURES (36.7%) Canadian Bonds and Debentures (30.3%) Corporate (30.3%) AltaGas Income Trust, 7.42% Apr. 29 14 AltaGas Income Trust, 6.94% Jun. 29 16 AltaGas Income Trust, 5.49% Mar. 27 17 AltaGas Ltd., 4.60% Jan. 15 18 Baytex Energy Corp., 6.75% Feb. 17 16, Series B Bell Canada, 3.60% Dec. 02 15 Bell Canada, 4.40% Mar. 16 18, Series M-22 Bell Canada, 4.95% May 19 21, Series M-24 Brookfield Asset Management Inc., 8.95% Jun. 02 14 Brookfield Asset Management Inc., 5.29% Apr. 25 17 Brookfield Asset Management Inc., 5.30% Mar. 01 21 Brookfield Renewable Power Fund, 6.132% Nov. 30 16 Brookfield Renewable Power Fund, 5.14% Oct. 13 20 Calloway Real Estate Investment Trust, 5.37% Oct. 12 16, Series B Canadian Natural Resources Limited, 4.95% Jun. 01 15 CI Investments Inc., 3.94% Dec. 14 15 Emera Inc., 4.83% Dec. 02 19, Series G Enbridge Inc., 4.53% Mar. 09 20 EnCana Corporation, 5.80% Jan. 18 18 First Capital Realty Inc., 5.36% Jan. 31 14, Series E First Capital Realty Inc., 5.50% Sep. 30 17 First Capital Realty Inc., 4.95% Nov. 30 18, Series K Greater Toronto Airports Authority, 4.70% Feb. 15 16 Greater Toronto Airports Authority, 4.85% Jun. 01 17 H&R Real Estate Investment Trust, 4.778% Jul. 27 16, Series D Holloway Lodging Real Estate Investment Trust, 8.00% Aug. 01 11, Restricted Inter Pipeline (Corridor) Inc., 4.897% Feb. 03 20, Series C Inter Pipeline Fund, 4.967% Feb. 02 21 Interprovincial Pipeline Ltd., 8.20% Feb. 15 24, Series K Maritimes & Northeast Pipeline LP, 4.34% Nov. 30 19 Merrill Lynch Financial Assets Inc., 4.823% Feb. 12 37, Series 2005-Canada 15, Class A-2 OMERS Realty CTT Holdings Inc., 4.75% May 05 16 Pembina Pipeline Corporation, 4.89% Mar. 29 21 Rogers Communications Inc., 4.70% Sep. 29 20 Rogers Communications Inc., 5.34% Mar. 22 21 Schooner Trust, 4.719% Apr. 12 15, Series 2005-3, Class A-2 Shaw Communications Inc., 6.50% Jun. 02 14 Shaw Communications Inc., 5.65% Oct. 01 19 Shaw Communications Inc., 5.50% Dec. 07 20 Suncor Energy Inc., 5.80% May 22 18 TELUS Corporation, 4.95% Mar. 15 17, Series CD TELUS Corporation, 5.05% Dec. 04 19, Series CG TELUS Corporation, 5.05% Jul. 23 20, Series CH Thomson Reuters Corporation, 4.35% Sep. 30 20 Veresen Inc., 5.60% Jul. 28 14 Vid otron Lt e, 6.875% Jun. 15 16 e e Viterra Inc., 5.95% Aug. 01 20 Viterra Inc., 6.406% Feb. 16 21, Series 2011-1

USD

1,975 1,765 4,050 1,552 1,625 4,762 2,753 3,551 4,582 1,361 1,631 2,691 3,914 10,011 1,401 3,752 3,873 2,496 13,302 7,726 12,175 1,256 4,747 1,992 2,441 6,100 625 3,171 360 6,852 14,535 3,794 2,680 6,850 3,292 5,775 5,195 3,114 2,391 1,946 9,173 8,488 2,269 3,733 5,537 800 681 780

$2,242 2,005 4,106 1,551 1,623 4,759 2,752 3,538 5,413 1,420 1,630 2,717 3,917 9,975 1,525 3,754 3,978 2,496 12,170 7,745 11,731 1,262 5,055 2,157 2,445 6,100 638 3,167 487 6,956 14,802 4,049 2,680 6,867 3,331 5,738 5,180 3,126 2,382 2,163 9,549 8,479 2,263 3,754 5,647 800 643 780

$2,190 1,998 4,304 1,568 1,626 4,819 2,797 3,551 5,258 1,419 1,639 2,949 3,917 10,390 1,502 3,799 4,027 2,555 14,887 8,087 12,510 1,251 5,079 2,147 2,483 6,107 653 3,274 486 7,045 15,317 4,077 2,747 6,679 3,315 6,066 5,662 3,197 2,393 2,170 9,683 8,697 2,305 3,753 5,871 804 668 820

USD


- 27 -

Dynamic Dividend Income FundSTATEMENT OF INVESTMENTS (contd)As at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

BONDS AND DEBENTURES (36.7%) (contd) Canadian Bonds and Debentures (30.3%) (contd) Corporate (30.3%) (contd) Westcoast Energy Inc., 4.57% Jul. 02 20 Foreign Bonds and Debentures (6.4%) United States (6.4%) Altria Group, Inc., 9.70% Nov. 10 18 Anheuser-Busch InBev Worldwide Inc., 3.65% Jan. 15 16 Anheuser-Busch InBev Worldwide Inc., 7.75% Jan. 15 19 Anheuser-Busch InBev Worldwide Inc., 6.875% Nov. 15 19 Boston Properties Limited Partnership, 5.625% Nov. 15 20 Comcast Corporation, 9.455% Nov. 15 22 Simon Property Group, L.P., 10.35% Apr. 01 19 Simon Property Group, L.P., 5.65% Feb. 01 20 Time Warner Cable Inc., 8.25% Apr. 01 19 EQUITIES (57.3%) Canadian Preferred Equities (4.3%) Brookfield Properties Corporation, 6.00% Class AAA, Series F Brookfield Properties Corporation, 5.75% Class AAA, Series H Brookfield Properties Corporation, 5.20% Class AAA, Series I Brookfield Properties Corporation, 5.20% Class AAA, Series K Canadian Equities Income Trusts (10.1%) Business Trusts (2.7%) DATA Group Income Fund (The) Keg Royalties Income Fund (The) Pizza Pizza Royalty Income Fund Real Estate Investment Trusts (6.4%) Calloway Real Estate Investment Trust Dundee Real Estate Investment Trust, Series A H&R Real Estate Investment Trust, Stapled Units Utility Trusts (1.0%) Inter Pipeline Fund, L.P., Class A Units Canada (38.0%) ARC Resources Ltd. Bank of Nova Scotia (The) Baytex Energy Corp. BCE Inc. Bonavista Energy Corporation Brookfield Asset Management Inc., Class A Brookfield Infrastructure Partners L.P., Units Canadian National Railway Company Enbridge Inc. Enerplus Corporation First Capital Realty Inc. Innergex Renewable Energy Inc. NAL Energy Corporation Pembina Pipeline Corporation

4,020

$4,035 205,582

$4,135 212,676

USD USD USD USD USD USD USD USD

10,512 3,997 3,640 3,733 3,023 2,910 4,315 2,591 2,707

13,816 3,995 4,363 4,335 3,049 3,948 5,767 2,746 3,336 45,355

13,320 4,056 4,416 4,378 3,114 3,903 5,759 2,699 3,255 44,900

275,000 307,500 307,500 293,000

7,114 8,041 8,042 7,237 30,434

6,944 7,869 7,706 7,401 29,920

738,400 461,000 957,000

7,227 4,308 9,138 20,673 14,436 5,696 10,218 30,350 5,105 4,566 16,199 13,730 9,906 6,710 4,666 3,554 7,430 15,578 13,737 7,072 9,015 7,311 4,420

3,965 6,076 8,546 18,587 23,247 6,107 15,567 44,921 6,989 7,210 18,560 17,251 15,317 6,397 10,863 3,968 8,084 19,732 14,902 10,105 15,169 6,604 4,611

924,315 188,826 722,363

441,202 288,760 320,000 329,088 405,000 225,000 340,000 165,000 105,000 631,026 489,549 614,305 1,521,479 599,238 181,900


- 28 -

Dynamic Dividend Income FundSTATEMENT OF INVESTMENTS (contd)As at June 30, 2011 Par Value (000s)/ Number of Shares/Units Average Cost (000s) Fair Value (000s)

EQUITIES (57.3%) (contd) Canada (38.0%) (contd) Pengrowth Energy Corporation Rogers Communications Inc., Class B Royal Bank of Canada TELUS Corporation Toronto-Dominion Bank (The) TransCanada Corporation Whistler Blackcomb Holdings Inc. United States (4.9%) JPMorgan Chase & Co. Norfolk Southern Corporation Northeast Utilities PepsiCo, Inc. Philip Morris International Inc. AVERAGE COST AND FAIR VALUE OF INVESTMENTS (94.0%) TRANSACTION COSTS (0.0%) (Note 2) TOTAL AVERAGE COST AND FAIR VALUE OF INVESTMENTS (94.0%) UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS (0.1%) UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTS (0.0%) UNREALIZED GAIN (LOSS) ON OTHER DERIVATIVES (0.0%) CASH AND CASH EQUIVALENTS (BANK OVERDRAFT) (5.2%) Canadian Foreign Short-Term Investments Bank of Montreal, Term Deposit, 1.00%, Jul. 04 11 Bank of Nova Scotia, Term Deposit, 0.95%, Jul. 04 11 OTHER NET ASSETS (LIABILITIES) (0.7%) NET ASSETS (100.0%)

1,144,625 421,500 383,400 217,208 353,300 272,499 393,600

$13,554 13,945 18,878 9,197 23,189 9,527 4,723 216,907 10,145 6,947 8,318 3,592 3,485 32,487 586,893 (313) 586,580 2,513 4,505

$13,850 16,042 21,083 11,525 28,893 11,499 4,558 266,223 8,876 7,872 10,719 3,509 3,289 34,265 658,481 658,481 808 (51) (12) 2,513 4,432 13,190 16,121 36,256 5,538 $701,020

225,000 109,000 316,000 51,700 51,100

13,190 16,121

13,190 16,121 36,329 5,538 $628,447

Average cost or fair values of some securities may include non-zero amounts that are rounded to zero. Where applicable, distributions received from holdings as a return of capital are used to reduce the adjusted cost base of the securities in the portfolio.


CIBC World Markets Inc. TD Waterhouse Canada Inc.

A+ 27-Jul-11 AA 17-Aug-11

CAD CAD

44,598 27,453

(USD) (USD)

(45,981) (27,848)

1.031 1.014

1.036 1.036

$237 571 $808


CIBC World Markets Inc.

A+

27-Jul-11

USD

2,742

(CAD)

(2,697)

0.983

0.965

$(51) $(51)


- 29 -

Dynamic Dividend Income FundSTATEMENT OF INVESTMENTS (contd)As at June 30, 2011

Unrealized Gain (Loss) on Other Derivatives:Futures Contract Number of Contracts Bought (Sold) Price Delivery Date Notional Cost (000s) Fair Value (000s) Unrealized Gain (Loss) (000s)

Government of Canada 10 Year Futures Bonds, Sep. 21 11 United States Treasury 10 Year Futures Bonds, Sep. 21 11

(27) (3)

CAD 124.6576 USD 123.2344

21-Sep-11 21-Sep-11

$(3,366) (357) $(3,723)

$(3,348) (354) $(3,702)

$18 3 $21Unrealized Gain (Loss) (000s)

Credit-default Swap

Counterparty

Credit Rating

Termination Date

Notional Amount

Variable Rate %

MARKIT CDX.NA.IG.15 MARKIT CDX.NA.HY.16

Bank of America Merrill Lynch Bank of America Merrill Lynch

A A

20-Dec-15 20-Jun-16

USD 2,674,693 USD 2,688,317

1.000 1.000

$(23) (10) $(33) $(12)

Total Unrealized Gain (Loss) on Other Derivatives


BONDS AND DEBENTURES Canadian Bonds and Debentures Federal Corporate Foreign Bonds and Debentures United States EQUITIES Canadian Preferred Equities Canada United States Canadian Equities Income Trusts Business Trusts Oil & Gas Royalty Trusts Real Estate Investment Trusts Utility Trusts CASH AND CASH EQUIVALENTS (BANK OVERDRAFT)

36.7 30.3 6.4 57.3 4.3 38.0 4.9 2.7 6.4 1.0 5.2

45.3 5.6 35.4 4.3 50.1 5.3 23.9 6.9 4.0 4.0 4.9 1.1 4.8


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Dynamic Dividend Income FundDISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTSAs at June 30, 2011

Risk ManagementDynamic Dividend Income Fund (the Fund) aims to achieve moderate income through investment primarily in preferred and equity securities of Canadian companies. The Fund invests primarily in securities of distribution paying

dynamic value annual

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