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IG AGF Canadian Growth Class Annual Financial Report MARCH 31, 2015

© Copyright Investors Group Inc. 2015 ™ Trademarks owned by IGM Financial Inc. and licensed to its subsidiary corporations.

STATEMENTS OF FINANCIAL POSITION

at March 31, 2015 with comparative figures at March 31, 2014 and April 1, 2013 (in $ 000 except per security amounts)

STATEMENTS OF COMPREHENSIVE INCOME

for the periods ended March 31 (in $ 000 except per security amounts)

IG AGF Canadian Growth Class ANNUAL FINANCIAL STATEMENTS MARCH 31, 2015

Mar. 31 Mar. 31 Apr. 1

2015 2014 2013

Assets

Current assets:

Investments at fair value 29,119 32,843 31,145

Cash and cash equivalents 574 997 915

Accrued interest receivable - - -

Dividends receivable 75 70 79

Accounts receivable for investments sold - 194 427

Accounts receivable for securities issued - - 4

Accounts receivable from the Manager - - 1

Margin on futures contracts - - -

Unrealized gains on derivative contracts 110 9 77

Other assets - - -

29,878 34,113 32,648

Non-current assets:

Taxes recoverable 207 87 64

Other assets - - -

207 87 64

Total assets 30,085 34,200 32,712

Liabilities

Current liabilities:

Bank indebtedness - - -

Accounts payable for investments purchased - 211 354

Accounts payable for securities redeemed - - -

Dividends payable - - -

Accrued expenses and miscellaneous payables - - 9

Dividends payable on investments sold short - - -

Liability for options written - - -

Unrealized losses on derivative contracts 11 - -

Taxes payable - - -

Other liabilities - - -

Total liabilities 11 211 363

Net assets attributable to securityholders 30,074 33,989 32,349

Net assets attributable to securityholders

per security per series

Mar. 31 Mar. 31 Apr. 1 Mar. 31 Mar. 31 Apr. 1

2015 2014 2013 2015 2014 2013

Series A 19.23 19.29 17.20 15,869 21,704 23,118

Series B 18.93 19.01 16.97 808 789 1,378

Series Jdsc 12.99 13.00 11.56 10,399 9,736 7,399

Series Jnl 12.95 12.97 11.54 585 713 454

Series U 11.76 11.63 - 2,413 1,047 -

30,074 33,989 32,349

Increase (decrease) in net assets attributable to securityholders from operations

per security per series

2015 2014 2015 2014

Series A (0.06) 2.09 (29) 2,446

Series B (0.08) 2.04 (2) 108

Series Jdsc (0.01) 1.44 (5) 1,074

Series Jnl (0.02) 1.43 (1) 88

Series U 0.13 1.63 13 91

(24) 3,807

See accompanying notes.

2015 2014

Income:

Dividends 861 902

Interest income 2 2

Other changes in fair value of investments:

Net realized gain (loss) 2,322 2,130

Net unrealized gain (loss) (2,313) 1,668

Income (loss) from derivatives - -

Income (loss) from short selling - -

Securities lending income 10 20

Other 1 9

Total income 883 4,731

Expenses:

Management fees 626 629

Management fee rebates - -

Service fees 95 97

Administration fees 80 78

Commissions and other portfolio transaction costs 60 75

Independent Review Committee costs - -

Other - -

Expenses before amounts absorbed by Manager 861 879

Expenses absorbed by Manager - -

Net expenses 861 879

Increase (decrease) in net assets attributable to securityholders

from operations before tax 22 3,852 Foreign withholding taxes paid (recovered) 46 45

Foreign income taxes paid (recovered) - -

Income tax paid (recovered) - -

Increase (decrease) in net assets attributable to securityholders

from operations (24) 3,807

TOTAL SERIES A SERIES B SERIES Jdsc

2015 2014 2015 2014 2015 2014 2015 2014

Net assets attributable to securityholders, beginning of period 33,989 32,349 21,704 23,118 789 1,378 9,736 7,399

Increase (decrease) in net assets attributable to securityholders resulting from:

Operations (24) 3,807 (29) 2,446 (2) 108 (5) 1,074

Dividends:

Ordinary - - - - - - - -

Capital gains - - - - - - - -

Return of capital - - - - - - - -

Management fee rebates - - - - - - - -

Total dividends - - - - - - - -

Security transactions:

Proceeds from sale of securities 9,543 9,995 2,094 3,373 441 442 4,966 4,580

Proceeds from securities issued on merger - - - - - - - -

Reinvested from dividends - - - - - - - -

Payment on redemption of securities (13,434) (12,162) (7,900) (7,233) (420) (1,139) (4,298) (3,317)

Total security transactions (3,891) (2,167) (5,806) (3,860) 21 (697) 668 1,263

Increase (decrease) in assets attributable to securityholders (3,915) 1,640 (5,835) (1,414) 19 (589) 663 2,337

Net assets attributable to securityholders, end of period 30,074 33,989 15,869 21,704 808 789 10,399 9,736

Increase (decrease) in securities (in thousands):

Securities outstanding, beginning of period 1,125 1,345 42 81 749 640

Add (deduct):

Securities sold 108 194 23 26 379 389

Securities issued on merger - - - - - -

Reinvested from dividends - - - - - -

Securities redeemed (408) (414) (22) (65) (328) (280)

Securities outstanding, end of period 825 1,125 43 42 800 749

STATEMENTS OF CHANGES IN FINANCIAL POSITION

for the periods ended March 31 (in $ 000 except when stated)



SERIES Jnl SERIES U

2015 2014 2015 2014

Net assets attributable to securityholders, beginning of period 713 454 1,047 -

Increase (decrease) in net assets attributable to securityholders resulting from:

Operations (1) 88 13 91

Dividends:

Ordinary - - - -

Capital gains - - - -

Return of capital - - - -

Management fee rebates - - - -

Total dividends - - - -

Security transactions:

Proceeds from sale of securities 223 595 1,819 1,005

Proceeds from securities issued on merger - - - -

Reinvested from dividends - - - -

Payment on redemption of securities (350) (424) (466) (49)

Total security transactions (127) 171 1,353 956

Increase (decrease) in assets attributable to securityholders (128) 259 1,366 1,047

Net assets attributable to securityholders, end of period 585 713 2,413 1,047

Increase (decrease) in securities (in thousands):

Securities outstanding, beginning of period 55 39 90 -

Add (deduct):

Securities sold 17 52 155 95

Securities issued on merger - - - -

Reinvested from dividends - - - -

Securities redeemed (27) (36) (40) (5)

Securities outstanding, end of period 45 55 205 90

STATEMENTS OF CASH FLOWS

for the periods ended March 31 (in $ 000 except when stated)


2015 2014

Cash flows from operating activities

Increase (decrease) in net assets attributable to securityholders from operations (24) 3,807

Adjustments for:

Net realized loss (gain) on investments (2,322) (2,130)

Change in net unrealized loss (gain) on investments 2,313 (1,668)

Purchases of investments (20,418) (21,709)

Proceeds from sale and maturity of investments 24,041 23,968

Change in accrued interest receivable - -

Change in dividends receivable (5) 9

Change in accounts receivable from managers and others - 1

Change in other assets - -

Dividends paid on investments sold short - -

Change in accrued liabilities - (9)

Change in taxes recoverable (120) (23)

Change in margin on futures contracts - -

Change in liability for options written - -

Net cash provided by (used in) operating activities 3,465 2,246

Cash flows from financing activities:

Proceeds from securities issued 9,543 9,999

Proceeds from securities issued on merger - -

Payments on redemption of securities (13,434) (12,162)

Dividends paid net of reinvestments - -

Net cash provided by (used in) financing activities (3,891) (2,163)

Increase (decrease) in cash and cash equivalents (426) 83

Cash and cash equivalents at beginning of period 997 915

Effect of exchange rate fluctuations on cash and cash equivalents 3 (1)

Cash and cash equivalents, end of period 574 997

Cash 574 997

Cash equivalents - -

Bank indebtedness - -

574 997

Supplementary disclosures on cash flow from operating activities:

Dividends received net of withholding taxes 812 866

Interest received net of withholding taxes 2 2

Interest paid - -


1 The issuer of this security is related to the Manager of the Fund.

EQUITIESAbbVie Inc. United States Health Care 8,600 560 638Agrium Inc. Canada Materials 3,200 323 422The Bank of Nova Scotia Canada Financials 9,919 452 630Barrick Gold Corp. Canada Materials 11,700 273 162BlackPearl Resources Inc. Canada Energy 137,600 485 125Brookfield Asset Management Inc. Class A limited voting Canada Financials 8,217 220 557Brookfield Infrastructure Partners LP Canada Utilities 9,878 345 570Calfrac Well Services Ltd. Canada Energy 29,400 413 245Canadian Energy Services & Technology Corp. Canada Energy 14,300 83 77Canadian Imperial Bank of Commerce Canada Financials 7,300 579 670Canadian National Railway Co. Canada Industrials 6,700 500 568Canadian Natural Resources Ltd. Canada Energy 13,215 466 513Canadian Utilities Ltd. Class A non-voting Canada Utilities 7,500 304 298Capstone Mining Corp. Canada Materials 42,800 123 52Catamaran Corp. United States Health Care 2,844 35 214CGI Group Inc. Class A Sub. voting Canada Information Technology 10,809 143 581Cisco Systems Inc. United States Information Technology 16,000 432 558CSX Corp. United States Industrials 14,900 410 625Eaton Corp. PLC United States Industrials 7,400 594 637ECI Exploration and Mining Inc. Canada Materials 13,530 15 -ECI Exploration and Mining Inc. Purchase Warrants Canada Materials 6,765 - -EMC Corp. United States Information Technology 17,700 607 573Enbridge Inc. Canada Energy 9,818 245 599EOG Resources Inc. United States Energy 2,900 308 337Estrella International Energy Services Ltd. Purchase Warrants Exp. 06-25-2015 Argentina Energy 19,734 - -Evertz Technologies Ltd. Canada Information Technology 3,900 70 68Finning International Inc. Canada Industrials 11,200 333 264First Quantum Minerals Ltd. Canada Materials 20,400 433 313Fortis Inc. Canada Utilities 7,000 261 270General Electric Co. United States Industrials 11,000 319 346Gibson Energy Inc. Canada Energy 21,271 435 553Gildan Activewear Inc. Canada Consumer Discretionary 7,800 252 291Highland Therapeutics Inc. Canada Health Care 8,700 24 110Highland Therapeutics Inc. Private Placement Canada Health Care 847 4 11Highland Therapeutics Inc. Private Placement Class A Canada Health Care 644 5 8Imperial Tobacco Group PLC United Kingdom Consumer Staples 8,000 314 445IMRIS Inc. Canada Health Care 6,365 35 8InfraReDx Inc. Pfd. United States Health Care 57,000 36 34Intact Financial Corp. Canada Financials 6,307 369 602J2 Global Communications Inc. United States Information Technology 2,400 210 200Keyera Corp. Canada Energy 7,300 574 615Kinder Morgan Inc. United States Energy 11,400 469 607Las Vegas Sands Corp. United States Consumer Discretionary 8,600 631 599Lazard Ltd. Class A United States Financials 9,600 611 639Loblaw Companies Ltd. Canada Consumer Staples 7,800 449 483LyondellBasell Industries NV Class A United States Materials 6,000 517 667Major Drilling Group International Inc. Canada Materials 3,500 34 24Manulife Financial Corp. Canada Financials 28,200 609 607Monadelphous Group Ltd. Australia Industrials 24,719 522 238MTN Group Ltd. South Africa Telecommunication Services 25,600 503 547National Bank of Canada Canada Financials 10,000 417 462Oracle Corp. United States Information Technology 10,500 467 574Pason Systems Inc. Canada Energy 7,500 145 150Perrigo Co. PLC United States Health Care 3,200 532 671Philip Morris International Inc. United States Consumer Staples 5,300 520 506

1 Power Corp. of Canada Sub. voting Canada Financials 7,305 220 245Precision Drilling Corp. Canada Energy 48,400 445 389Pyrogenesis Canada Inc. Canada Industrials 48,771 38 24Randgold Resources Ltd. United Kingdom Materials 400 36 35Rock-Tenn Co. Class A United States Materials 5,300 298 433Royal Bank of Canada Canada Financials 7,703 352 587Saputo Inc. Canada Consumer Staples 8,562 170 298Schlumberger Ltd. United States Energy 5,000 570 528Secure Energy Services Inc. Canada Energy 18,200 399 294Shaw Communications Inc. Class B non-voting Canada Consumer Discretionary 9,300 217 264ShawCor Ltd. Canada Energy 10,349 343 364Silver Wheaton Corp. Canada Materials 7,200 182 173Spectris PLC United Kingdom Information Technology 14,500 565 588Suncor Energy Inc. Canada Energy 11,928 419 441T. Rowe Price Group Inc. United States Financials 6,300 627 646Tahoe Resources Inc. United States Materials 18,400 316 255

SCHEDULE OF INVESTMENTS

as at March 31, 2015

IG AGF Canadian Growth ClassANNUAL FINANCIAL STATEMENTS MARCH 31, 2015

No. of Units, Average Fair Shares, or Cost Value Country Sector Par Value ($ 000) ($ 000)

No. of Units, Average Fair Shares, or Cost Value Country Sector Par Value ($ 000) ($ 000)

EQUITIES (continued)

SCHEDULE OF INVESTMENTS (continued)



Teck Resources Ltd. Class B Canada Materials 19,100 521 332Teranga Gold Corp. Canada Materials 13,465 35 9Toromont Industries Ltd. Canada Industrials 9,738 233 319The Toronto-Dominion Bank Canada Financials 9,544 289 517Tourmaline Oil Corp. Canada Energy 12,600 502 483U.S. Geothermal Inc. United States Utilities 55,622 82 34U.S. Geothermal Inc. Purchase Warrants Exp. 09-16-2015 United States Utilities 7,711 - -Victrex PLC United Kingdom Materials 16,000 395 564Xilinx Inc. United States Information Technology 13,700 688 734 25,957 29,119COMMISSIONS AND OTHER PORTFOLIO TRANSACTION COSTS (39) -TOTAL INVESTMENTS 25,918 29,119

Net Assets (see Schedule 1):Total investments 29,119Cash and cash equivalents 574Unrealized gains on forward currency contracts (see Schedule 2) 110Unrealized losses on forward currency contracts (see Schedule 2) (11)Other net assets (liabilities) 282 30,074


% of net asset value

BY ASSET TYPE

Equities 96.8Cash and cash equivalents 1.9Other net assets (liabilities) 1.3Total 100.0

BY REGION

Canada 52.0United States 36.8United Kingdom 5.4Europe ex U.K. 1.8Pacific ex Japan 0.8 96.8

BY SECTOR

Energy 21.0Financials 20.5Information Technology 12.9Materials 11.5Industrials 10.0Consumer Staples 5.8Health Care 5.6Utilities 3.9Consumer Discretionary 3.8Telecommunication Services 1.8 96.8



BY ASSET TYPE

Equities 96.6Cash and cash equivalents 2.9Other net assets (liabilities) 0.5Total 100.0

BY REGION

Canada 57.5United States 29.1United Kingdom 5.8Pacific ex Japan 2.2Europe ex U.K. 2.0 96.6

BY SECTOR

Energy 31.8Financials 19.0Materials 14.7Industrials 8.1Information Technology 7.6Consumer Staples 6.2Consumer Discretionary 3.6Telecommunication Services 2.0Utilities 2.0Health Care 1.6 96.6

as at April 1, 2013


BY ASSET TYPE

Equities 96.3 Cash and cash equivalents 2.8Other net assets (liabilities) 0.9Total 100.0

BY REGION

Canada 63.8United States 25.6United Kingdom 6.0Pacific ex Japan 0.7Europe ex U.K. 0.2 96.3

BY SECTOR

Energy 27.6Financials 18.9Materials 14.0Consumer Staples 11.0Information Technology 8.6Consumer Discretionary 5.7Industrials 4.2Telecommunication Services 3.2Health Care 1.9Utilities 1.2 96.3

Schedule 1 - Asset Composition


Schedule 2 – Forward Currency Contracts


Currency to Contract Currency to Current Unrealized Unrealized Counterparty Settlement be received costs be delivered fair value gains losses credit rating date (000) (CAD$ 000) (000) (CAD$ 000) (CAD$ 000) (CAD$ 000)

A 05-19-2015 868 CAD 868 463 GBP 870 - (2) AA 05-19-2015 343 CAD 343 178 GBP 335 8 - A 04-20-2015 454 CAD 454 361 USD 457 - (3) A 04-20-2015 122 CAD 122 98 USD 124 - (2) A 04-20-2015 1,911 CAD 1,911 1,496 USD 1,895 16 - AA 04-20-2015 300 CAD 300 240 USD 304 - (4) AA 04-20-2015 83 CAD 83 65 USD 82 1 - A 04-21-2015 4,177 CAD 4,177 3,261 USD 4,131 46 - AA 04-21-2015 1,357 CAD 1,357 1,062 USD 1,346 11 - A 04-22-2015 1,213 CAD 1,213 950 USD 1,203 10 - A 05-19-2015 30 GBP 56 56 CAD 56 - - A 04-21-2015 361 USD 451 451 CAD 458 7 - A 04-21-2015 238 USD 297 297 CAD 301 4 - A 04-21-2015 204 USD 255 255 CAD 258 3 - A 04-21-2015 240 USD 300 300 CAD 304 4 - 110 (11)

Note: Credit ratings are based on DBRS, Standard & Poor’s or Moody’s ratings.

IG AGF Canadian Growth ClassNOTES TO THE ANNUAL FINANCIAL STATEMENTS MARCH 31, 2015

1. ORGANIZATION OF THE CORPORATION, THE FUND, FISCAL PERIODS AND GENERAL INFORMATION

(a) Organization of the Corporation and the Fund

Investors Group Corporate Class Inc. (the Corporation) is a mutual fund corporation incorporated under the laws of Canada on July 17, 2002. The address of the Corporation’s registered office is 447 Portage Avenue, Winnipeg, Manitoba, Canada. The Fund is a class of shares of the Corporation. The Corporation is authorized to issue an unlimited number of common shares and mutual fund shares. If issued, Series P and Z shares are only available for purchase by other Investors Group Funds or other qualified investors. All series generally share in the operations of the Fund on a pro rata basis except for items that can be specifically attributed to one or more series. Dividends for each series may vary, partly due to the differences in expenses between the series.

(b) Financial Periods

The Statements of Financial Position are presented as at March 31, 2015, March 31, 2014, and April 1, 2013. The Statements of Comprehensive Income, Statements of Changes in Financial Position and Statements of Cash Flows are for the periods ended March 31, 2015 and March 31, 2014. The Schedule of Investments is presented as at March 31, 2015. Where a Fund or series of a Fund was established during either period, the information for the Fund or series is provided from inception date.

(c) General information

I.G. Investment Management, Ltd. is the Manager of the Fund. I.G. Investment Management, Ltd. and/or I.G. International Management Limited acts as Portfolio Advisor(s) to the Fund. In some cases, I.G. Investment Management (Hong Kong) Limited has been engaged as sub-advisor to provide investment services to the Fund. The Fund is distributed by Investors Group Financial Services Inc. and Investors Group Securities Inc. (collectively, the Distributors). These companies are, indirectly, wholly owned subsidiaries of IGM Financial Inc.

IGM Financial Inc. is a subsidiary of Power Financial Corp. and Power Corporation of Canada. Power Financial Corp. also owns a majority of Great-West Lifeco Inc. and its related companies and, therefore, those companies are considered affiliates of the Manager and the Distributors. The Fund may invest in certain securities within the Power Group of Companies, subject to certain governance criteria, and these holdings, as at the end of the period, have been identified on the Schedule of Investments for the Fund. Any transactions during the period were executed through market intermediaries and under prevailing market terms and conditions.

2. BASIS OF PREPARATION AND PRESENTATION

These annual financial statements (financial statements) have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These are the Fund’s first annual financial statements prepared in accordance with IFRS and accordingly, IFRS 1 First-time Adoption of International Financial Reporting Standards has been applied.The Fund adopted IFRS on April 1, 2014, as required by Canadian securities legislation and the Canadian Accounting Standards Board. Previously, the Fund prepared its financial statements in accordance with Canadian generally accepted accounting principles as defined in Part V of the Chartered Professional Accountants Canada (CPA Canada) Handbook (Canadian GAAP).All IFRS standards in effect at March 31, 2015, have been applied retrospectively and consistently in presenting the Fund’s opening IFRS Statement of Financial Position at April 1, 2013 and throughout all periods presented, as if these policies had always been in effect. A summary of the Fund’s significant accounting policies under IFRS is presented in Note 3.These financial statements are presented in Canadian dollars, which is the Fund’s functional currency, and rounded to the nearest thousand unless otherwise indicated. These financial statements are prepared on a going concern basis using the historical cost basis, except for financial assets and liabilities that have been measured at fair value.These financial statements were authorized for issue by the Manager on June 4, 2015.The preparation of these financial statements under IFRS resulted in changes to accounting policies as compared with the most recent annual financial statements prepared in accordance with Canadian GAAP. Notes 11 and 13 disclose the impact of the transition to IFRS on the Fund’s reported financial position and financial performance, including the nature and effect of significant changes in accounting policies from those used in the Fund’s financial statements for the year ended March 31, 2014 prepared under Canadian GAAP.Standards issued but not yet effective for the current accounting year are described in Note 3.

3. SIGNIFICANT ACCOUNTING POLICIES

(a) Financial Instruments

Investments include financial assets and liabilities such as debt and equity securities, open-ended investment funds and derivatives. The Fund has elected to apply IFRS 9 Financial Instruments (IFRS 9) on adoption of IFRS and has applied the standard retrospectively to April 1, 2013. Upon initial recognition, financial instruments are classified as fair value through profit or loss (FVTPL). All financial assets and liabilities are recognized in the Statement of Financial Position when the Fund becomes a party to the contractual requirements of the instrument. Financial instruments are derecognized when the right to receive cash flows from the instrument has expired or the Fund has transferred substantially all risks and rewards of ownership. As such, investment purchase and sale transactions are recorded as of the trade date.

Financial instruments are subsequently measured as FVTPL with changes in fair value recognized in the Statement of Comprehensive Income.

The cost of investments is based on the weighted average cost of investments and excludes commissions and other portfolio transaction costs, which are separately reported in the Statement of Comprehensive Income. Realized gains and losses on disposition, including foreign exchange gains or losses on such investments, are determined based on the average cost of investments. Gains and losses arising from changes in the fair value of the investments are included in the Statement of Comprehensive Income for the period in which they arise.

The Fund accounts for its holdings in unlisted open-ended investment funds at FVTPL. The Fund has concluded that unlisted open-ended investment funds in which it invests do not meet the definition of structured entities. The Fund’s investment in unlisted open-ended funds, if any, is presented in the Schedule of Investments at fair value which represents the Fund’s maximum exposure on these investments.

(b) Fair value measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s valuation policies are as follows:

(i) Equity securities, fixed-income securities and other investment funds

Fair value for securities listed on a public securities exchange or traded on an over-the- counter market is determined as the last traded market price or close price recorded by the security exchange on which the security is principally traded, where the close price falls within the bid-ask spread of the security. In situations where the last traded market price is not within the bid-ask spread, the Manager selects the point within the bid-ask spread that is most representative of fair value.

Investments in securities of another investment fund are valued at the net asset value per security calculated in accordance with the offering documents of such investment fund or as reported by that fund’s manager.

Unlisted or non-exchange traded securities, or securities for which a last traded market price is unavailable or securities for which market quotations are, in the Manager’s opinion, inaccurate, unreliable or not reflective of all available material information, are valued at their estimated fair value, determined by using appropriate and accepted industry valuation techniques including valuation models. The estimated fair value of a security determined using valuation models requires the use of inputs and assumptions based on observable market data including volatility and other applicable rates or prices. In limited circumstances, the estimated fair value of a security may be determined using valuation techniques that are not supported by observable market data.

(ii) Futures and swaps contracts

Futures and swaps contracts are valued at the gain or loss that would be realized upon closure of the contract. The values for such contracts fluctuate and are best determined at the settlement price established each day by the board of trade or exchange on which the contracts are traded.

Margin accounts represent margin deposits held with brokers in respect of open exchange-traded futures and swaps contracts. Any change in the variation margin requirement is settled daily. Margin paid or deposited in respect of futures contracts or swaps is reflected as a receivable at fair value in the Statements of Financial Position. Unrealized gains or losses are reported in the Statements of Comprehensive Income until the Fund closes out the contract or the contract expires.

(iii) Forward contracts

Forward contracts, including forward currency contracts, are valued at the gain or loss that would arise as a result of closing the position at the reporting date.

(iv) Options contracts

Premiums received from writing options are included in the Statements of Financial Position as a liability and subsequently adjusted daily to fair value. If a written option expires unexercised, the premium received is recognized as a realized gain. If a written call option is exercised, the difference between the proceeds of the sale plus the value of the premium and the cost of the security is recognized as a realized gain or loss. If a written put option is exercised, the cost of the security acquired is the exercise price of the option less the premium received.

(c) Cash and cash equivalents

Cash and cash equivalents includes cash on deposit with banks and short term investments that are readily convertible to cash, are subject to an insignificant risk of changes in value, and are used by the Fund in the management of short-term commitments. Cash and cash equivalents are reported at fair value which closely approximates their amortized cost due to their nature of being highly liquid and having short terms to maturity. Bank overdraft positions are presented as bank indebtedness in current liabilities in the Statements of Financial Position.

(d) Currency

All amounts are expressed in Canadian dollars. Foreign currency amounts have been expressed in Canadian dollars on the following bases:

(i) Fair value of investments and other assets and liabilities at the rate of exchange at the end of the period.

(ii) Income, expenses, purchases and sales of investments at the rate of exchange on the dates of such transactions.

(e) Income recognition

Interest income from interest bearing investments is recognized using the effective interest method. Dividends are accrued as of the ex-dividend date. Dividend income and distributions from open-ended investment funds are recognized when the Fund’s right to receive payment is established which is typically on the ex-dividend or distribution date. Distributions received from income trusts and open-ended funds are included in interest income, dividend income or capital gains, as appropriate, based on the best information available to the Manager. Due to the nature of these investments, actual allocations could vary from this information.


3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(f) Securities lending and repurchase transactions

The Fund may be permitted to enter into securities lending, repurchase and reverse repurchase transactions as set out in the Fund’s Simplified Prospectus. These transactions involve the temporary exchange of securities for collateral with a commitment to deliver the same securities on a future date. Income is earned from these transactions in the form of fees paid by the counterparty and, in certain circumstances, interest paid on cash or securities held as collateral. Income earned from these transactions is recognized on the accrual basis and included in the Statements of Comprehensive Income. All the counterparties have a sufficient, approved credit rating and the value of cash or securities held as collateral must be at least 102% of the fair value of the securities loaned, sold or purchased. The value of securities loaned and collateral received from securities lending as of the end of the periods, if applicable, is disclosed in Note 13. Collateral received is comprised of debt obligations of the Government of Canada and other countries, Canadian provincial and municipal governments, and financial institutions.

(g) Redeemable securities

The Fund’s redeemable securities entitle securityholders the right to redeem their interest in the Fund for cash equal to their proportionate share of the net asset value of the Fund, amongst other contractual rights. These redeemable securities involve multiple contractual obligations on the part of the Fund and therefore meet the criteria for classification as financial liabilities. The Fund’s obligation for net assets attributable to securityholders is measured at FVTPL, with fair value being the redemption amount as of the reporting date.

(h) Commissions and other portfolio transaction costs

Commissions and other portfolio transaction costs are costs incurred to acquire, dispose or otherwise transact financial assets or liabilities. They include fees and commissions paid to agents, exchanges, brokers and dealers, and other intermediaries.

(i) Increase (decrease) in net assets attributable to securityholders from operations

Increase (decrease) in net assets attributable to securityholders from operations per security for a series in the Statement of Comprehensive Income represents the weighted average increase (decrease) in net assets attributable to securityholders from operations for the series, per security outstanding during the period.

(j) Offsetting

Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. In the normal course of business, the Fund enters into various master netting agreements or similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts.

Note 13 presents the amounts, if any, that are subject to master netting arrangements or other similar agreements and the net impact to the Statements of Financial Position if all such rights were exercised.

(k) Mergers

The Fund applies the acquisition method of accounting for Fund mergers. Under this method, one of the Funds in each merger is identified as the acquiring Fund, and is referred to as the Continuing Fund, and the other Fund involved in the merger is referred to as the Terminated Fund. This identification is based on the comparison of the relative net asset values of the Funds as well as consideration of the continuation of such aspects of the Continuing Fund as: investment advisors; investment objectives and practices; type of portfolio securities; and management fees and expenses.

(l) Future accounting changes

Amendment to Applying the Consolidation Exception to Investment Entities

In December 2014, the IASB issued a narrow-scope amendment called Investment Entities: Applying the Consolidation Exception amendments to IFRS 10 Consolidated Financial Statement, IAS 28 Investments in Associates and Joint Ventures and IFRS 12 Disclosure of Interests in Other Entities. The amendment clarifies the application of the exemption from presenting consolidated financial statements that is available to investments entities under IFRS 10 Consolidated Financial Statements. The amendment is effective for annual periods beginning on or after January 1, 2016. The Fund is assessing the implications, if any, on the Fund’s financial statements.

4. USE OF ACCOUNTING JUDGMENTS AND ESTIMATES

The preparation of financial statements in accordance with IFRS requires judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities at the reporting date and the reported amounts of income and expenses during the period. However, existing circumstances and assumptions may change due to market changes or circumstances arising beyond the control of the Fund. Such changes are reflected in the assumptions when they occur. The following discusses the most significant accounting judgments and estimates made in preparing the financial statements:(a) Functional Currency

The Fund’s functional and presentation currency is the Canadian dollar, which is the currency considered to most faithfully represent the economic effects of the Fund’s underlying transactions, events and conditions taking into consideration the manner in which securities are issued and redeemed and how returns and performance by the fund are measured.

(b) Classification of financial instruments

In classifying and measuring financial instruments held by the Fund, the Manager is required to make significant judgments in order to determine the most appropriate classification in accordance with IFRS 9. The Manager has assessed the Fund’s business model, the manner in which all financial assets and financial liabilities are managed and performance evaluated as a group on a fair value basis, and concluded that FVTPL in accordance with IFRS 9 provides the most appropriate measurement and presentation of the Fund’s financial assets and financial liabilities.

(c) Estimations of Fair Value

The Fund may, from time to time, hold financial instruments that are not quoted in active markets, such as unlisted securities or private securities. To estimate fair value, the Manager uses valuation techniques that make use of observable data, to the extent practicable. The Fund categorizes the fair value of its assets and liabilities into three categories, which are differentiated based on the observable nature of the inputs and extent of estimation required.

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly. Examples of Level 2 valuations include quoted prices for similar securities, quoted prices on inactive markets and from recognized investment dealers, and the application of factors derived from observable data to non-North American quoted prices in order to estimate the impact of differences in market closing times. The estimated fair values for these securities may be different from the values that would have been used had a ready market for the investment existed.

Level 3 – Inputs that are not based on observable market data. Various valuation techniques are utilized, depending on each situation. These methods and procedures may include, but are not limited to, performing comparisons with prices of comparable or similar securities, obtaining relevant information from issuers and/or other analytical data relating to the investment, and recent arm’s length transactions. Key inputs and assumptions used are usually security specific and may include estimated discount rates, credit risk, volatility, correlations, and future cash flows. Changes in key inputs and assumptions could affect the reported fair value of these financial instruments held by the Fund. The estimated fair values for these securities may be significantly different from the values that would have been used had a ready market for the investment existed.

See Note 13 for the fair value classifications of the Fund.

(d) Structured entities

In determining whether unlisted open-ended investment funds in which the Fund invests, but that it does not consolidate, meet the definition of a structured entity, the Manager is required to make significant judgments about whether the Underlying Funds have the typical characteristics of a structured entity. The Manager has assessed the characteristics of the Underlying Funds and has concluded that they do not meet the definition of a structured entity because the Fund does not have contracts or financing arrangements with the Underlying Funds and does not have an ability to influence the activities of the Underlying Funds or the return it receives from its investment.

5. MANAGEMENT FEES AND OTHER EXPENSES

(a) Each series of the Fund will incur expenses that can be specifically attributed to that series. Common expenses of the Fund are allocated across the series of the Fund on a pro rata basis. Common expenses of the Corporation are allocated across the Funds on a pro rata basis.

(b) The Manager provides or arranges for the provision of investment and advisory services for a management fee. See Note 13 for the annual rates paid (as a percent of average assets) by the Fund.

(c) The Fund pays the Manager an administration fee and in return the Manager will bear the operating expenses of the Fund, other than certain specified Fund costs. See Note 13 for the annual rates paid (as a percent of average assets) by the Fund.

Other Fund costs include taxes (including but not limited to GST/HST and income tax), transaction costs related to the purchase and sale of investments and derivatives, interest and borrowing costs, and Independent Review Committee (IRC) costs.

(d) The Fund may pay the Distributors a service fee to compensate them for providing or arranging for the provision of services to the Fund. See Note 13 for the annual rates paid (as a percent of average assets) by the Fund.

(e) An advisory fee is charged by the Distributors for investment advice and administrative services related to Series U and Tu, if issued. The advisory fee is payable monthly directly by investors in Series U and Tu, and not by the Fund.

(f) GST/HST paid by the Fund on its expenses is not recoverable. In these financial statements, reference to GST/HST includes QST (Québec sales tax), as applicable.

(g) Other expenses are comprised of interest and borrowing charges and other miscellaneous expenses.

(h) The Manager may, at its discretion, pay certain expenses of the Fund so the Fund’s performance remains competitive; however, there is no assurance that this will occur in the future. Any expenses absorbed by the Manager during the periods have been identified in the Statements of Comprehensive Income.


6. INCOME TAXES

The Corporation qualifies as a mutual fund corporation under the provisions of the Income Tax Act (Canada). As a mutual fund corporation, the Corporation computes its net income (loss) and net capital gains (losses) for income tax purposes as a single entity, not on a fund-by-fund basis. Therefore, net loss for income tax purposes of one Fund in the Corporation may be used to offset net income for tax purposes of another Fund in the Corporation to reduce the total net income for tax purposes of the Corporation as a whole. The Corporation maintains a December year end for tax purposes.The general income tax rules associated with a public corporation also apply to a mutual fund corporation with the exception that income taxes payable on capital gains are refundable on a formula basis when issued shares of the Corporation are redeemed or capital gain dividends are paid. The Corporation is subject to a refundable tax of one-third of dividends received from certain taxable Canadian corporations. This tax is refundable at the rate of $1 for every $3 of ordinary dividends paid. To the extent there is net income for tax purposes from other sources (such as interest and foreign income), it is taxed at the full general corporate rate before the general rate reductions. In the event that there is an overall net loss for tax purposes for the Corporation, this loss can be carried back three years or forward to a subsequent year and used to reduce taxes payable for those years.As of the end of the last taxation year, the Corporation had no capital losses available to offset future capital gains.The Corporation and the Fund follow the asset and liability method of accounting for income taxes whereby deferred income tax assets and liabilities reflect the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred income tax assets and liabilities are measured based on the enacted or substantively enacted tax rates which are expected to be in effect when the underlying items of income or expense are expected to be realized.Temporary differences between the carrying value of assets and liabilities for accounting and tax purposes give rise to deferred income tax assets and liabilities. Where the fair value of investments exceeds their cost, a deferred tax liability arises. This deferred tax liability for refundable taxes payable is offset with the refund expected upon payment of capital gains dividends. Where the cost of investments exceeds their fair value, a deferred tax asset is generated. A full valuation allowance is taken to offset this asset given the uncertainty that such deferred assets will ultimately be realized by the Fund.

7. COMMISSIONS AND OTHER PORTFOLIO TRANSACTION COSTS

The total brokerage commissions incurred by the Fund in connection with portfolio transactions for the periods, together with other transaction charges, is disclosed in the Statements of Comprehensive Income. Brokerage business is allocated to brokers based on the best net result for the Fund. Subject to this criteria, commissions may be paid to brokerage firms which provide (or pay for) certain services, other than order execution, which may include investment research, analysis and reports, and databases or software in support of these services. Where applicable and ascertainable, the value of third-party services that were paid for by brokers during the periods is disclosed in Note 13. The value of certain proprietary services provided by brokers cannot be reasonably estimated.

8. GUARANTEES AND INDEMNITIES

Agreements between the individual members of the Fund’s IRC and the Manager, on behalf of the Fund, provides for the indemnification of each IRC member by the Fund from and against liabilities and costs in respect of any action or suit against the member by reason of being or having been a member of the IRC, provided that the member acted honestly and in good faith with a view to the best interest of the Fund, or, in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, that they had reasonable grounds for believing that his/her conduct was lawful. No claims with respect to such occurrences have been made and, as such, no amount has been recorded in these financial statements with respect to these indemnifications.

9. CAPITAL MANAGEMENT

The capital structure of the Fund consists of redeemable securities in multiple series. The net capital received by the Fund is managed in accordance with the investment objective and strategies of the Fund and to maintain adequate liquidity to meet securityholder redemption requests. The Fund is not subject to externally imposed capital requirements and has no legal restrictions on the issue or redemption of securities beyond those included in the Fund’s prospectus. Securities issued, reinvested and redeemed during the periods are reflected in the Statements of Changes in Financial Position.

10. FINANCIAL INSTRUMENT RISK

The Fund’s investment activities expose it to a variety of financial risks. See the Schedule of Investments for additional information about the securities held by the Fund as at the end of the periods.(a) Liquidity risk

The Fund is exposed to daily cash redemptions of redeemable securities. The securities are redeemable on demand at the option of the securityholder at the current net asset value per security. In accordance with securities regulations, the Fund must maintain at least 90% of its assets in liquid investments (i.e. investments that are traded in an active market and can be readily sold). In addition, the Fund retains sufficient cash and short-term investments to maintain adequate liquidity. The Fund also has the ability to borrow up to 5% of its net assets for the purposes of funding redemptions.

(b) Currency risk

Currency risk is the risk that financial instruments which are denominated or exchanged in a currency other than the Canadian dollar, which is the Fund’s functional currency, will fluctuate due to changes in exchange rates. Generally, foreign denominated investments increase in value when the value of the Canadian dollar (relative to foreign currencies) falls. Conversely, when the value of the Canadian dollar rises relative to foreign currencies, the value of foreign denominated investments fall.

Note 13 indicates the foreign currencies, if applicable, to which the Fund had significant exposure, including the amount of forward currency contracts in Canadian dollar terms. Other financial assets and liabilities (including dividends and interest receivable, and receivables/payables for investments sold/purchased) that are denominated in foreign currencies do not expose the Fund to significant currency risk.

(c) Interest rate risk

Interest rate risk arises on interest-bearing financial instruments such as bonds. The Fund is exposed to the risk that the value of interest-bearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. Generally, these securities increase in value when interest rates fall and decrease in value when interest rates rise. Cash and cash equivalents and other money market instruments are short term in nature and are not generally subject to significant amounts of interest rate risk. Note 13 summarizes the Fund’s exposure, if significant, to interest rate risk.

(d) Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. Note 13 summarizes the Fund’s exposure, if significant, to credit risk.

All transactions in listed securities are settled/paid for upon delivery using approved third-party brokers. The risk of default is considered minimal, as delivery of investments sold by the Fund is only made once the broker has received payment. Payment is made by the Fund on a purchase only once the investments have been received by the broker.

The carrying amount of investments represents the maximum credit risk exposure. The carrying amount of other assets also represents the maximum credit risk exposure, as they will be settled in the short term.

The Fund may enter into securities lending transactions with counterparties whereby the Fund temporarily exchanges securities for collateral with a commitment by the counterparty to deliver the same securities on a future date. Credit risk associated with these transactions is considered minimal as all counterparties have a sufficient, approved credit rating and the value of cash or securities held as collateral must be at least 102% of the fair value of the investments loaned.

(e) Other price risk

Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate or currency risk), whether caused by factors specific to an individual investment, its issuer or other factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The Manager moderates this risk through a careful selection of securities and other financial instruments within the parameters of the investment strategies. Except for certain derivative contracts, the maximum risk resulting from financial instruments is equivalent to their fair value. The maximum risk of loss on certain derivative contracts such as forwards, swaps, options written and futures contracts is equal to their notional values. However, these instruments are generally used within the overall investment management process to manage the risk from the underlying investments and do not typically increase the overall risk of loss to the Fund. Note 13 summarizes the Fund’s exposure, if significant, to other price risk.


11. TRANSITION TO IFRS

The effect of the transition to IFRS from Canadian GAAP is summarized as follows:(a) Transition elections

The only voluntary exemption adopted by the Fund upon transition was the ability to designate financial assets or financial liabilities at FVTPL upon transition to IFRS. All financial assets upon transition were previously carried at fair value under Canadian GAAP as required by Accounting Guideline 18, Investment Companies.

(b) Revaluation of investments

Under Canadian GAAP, the fair value of investments was generally based on bid prices for long positions and ask prices for short positions. Under IFRS, the fair value of investments is generally measured using last traded market prices, which is consistent with how the daily net asset value per security is measured for securityholder transactions. As a result, on adoption of IFRS, adjustments to the reported fair values of investments were necessary at April 1, 2013 and March 31, 2014. Reconciliations of net assets and comprehensive income previously reported under Canadian GAAP to IFRS are disclosed in Note 13.

(c) Classification of redeemable securities of the Fund

Under Canadian GAAP, the Fund accounted for redeemable securities as equity. Under IFRS, IAS 32 Financial Instruments: Presentation, requires that securities of an entity which include a contractual obligation for the issuer to repurchase or redeem them for cash or another financial asset be classified as a financial liability if certain additional criteria are not met. The Fund’s redeemable securities do not meet the criteria in IAS 32 for classification as equity and therefore, have been reclassified as financial liabilities on transition to IFRS. Other than presentation, there was no impact to the net assets of the Fund.

(d) Statement of Cash Flows

Under Canadian GAAP, the Fund was exempt from providing a Statement of Cash Flows. IAS 1 Presentation of Financial Statements, requires that a complete set of financial statements include a statement of cash flows for the current and comparative periods, and prepared in accordance with IAS 7 Statement of Cash Flows.

(e) Comparative figures

Certain prior period comparative amounts have been reclassified to conform to the current period’s presentation under IFRS.

12. OTHER INFORMATION

(a) Abbreviations

Foreign currencies, if any, are presented in these financial statements using the following abbreviated currency codes:

Currency Code Description

Currency Code Description

AUD Australian dollars MXN Mexican peso

BRL Brazilian real MYR Malaysian ringgit

CAD Canadian dollars NGN Nigerian naira

CHF Swiss franc NOK Norwegian krona

CLP Chilean peso NTD New Taiwan dollar

CNY Chinese yuan NZD New Zealand dollars

COP Colombian peso PEN Peruvian nuevo sol

DKK Danish krone PHP Philippine peso

EUR Euro PLN Polish zloty

GBP United Kingdom pounds RON Romanian leu

HKD Hong Kong dollars RUB Russian ruble

HUF Hungarian forint SEK Swedish krona

IDR Indonesian rupiah SGD Singapore dollars

ILS Israeli sheqel THB Thailand baht

INR Indian rupee TRL Turkish lira

JPY Japanese yen USD United States dollars

KOR South Korean won ZAR South African rand

(b) Additional information available

A copy of the Fund’s current Simplified Prospectus, Annual Information Form and/or Management Report of Fund Performance, will be provided, without charge, by writing to: Investors Group Financial Services Inc., 447 Portage Avenue, Winnipeg, Manitoba, R3B 3H5 or, in Québec, 2001, Robert-Bourassa Boulevard , Bureau 2000, Montréal, Québec, H3A 2A6, or by calling toll-free 1-888-746-6344 (in Québec 1-800-661-4578).

13. FUND SPECIFIC INFORMATION

(a) Fund and series information

Date Deferred operations sales Management Service Administration Series commenced1 charge (%) fee (%) fee (%) fee (%)Series A n/a up to 5.50 1.85 0.30 0.22Series B n/a - 1.85 0.40 0.22Series JDSc n/a up to 5.50 1.60 0.30 0.22Series JNL n/a - 1.60 0.40 0.22Series U July 12, 2013 - 0.85 - 0.221 If within the financial periods ended March 31, 2015.

(b) Commissions

for the 12 months to ($ 000)

March 31, 2015 4

March 31, 2014 2

(c) Securities lending

Value of Value of securities collateral ($ 000) loaned received

March 31, 2015 3,304 3,489

March 31, 2014 3,889 4,088

April 1, 2013 4,352 4,591

(d) Financial instrument risk

i) Risk management

The Manager seeks to minimize potential adverse effects of financial instrument risks on the Fund’s performance by employing professional, experienced portfolio advisors, daily monitoring of the Fund’s positions and market events, diversifying the investment portfolio within the constraints of the investment objective, and periodically may use derivatives to mitigate certain risk exposures. To assist in managing risk, the Manager also maintains a governance structure that oversees the Fund’s investment activities and monitors compliance with the Fund’s stated investment strategy and securities regulations.

The Fund invests primarily in the common shares of large- and medium-capitalization Canadian corporations that have above-average growth potential.

ii) Currency risk

The tables below indicate the foreign currencies to which the Fund had significant exposure in Canadian dollar terms. The tables also illustrate the potential impact to the Fund’s net assets had the Canadian dollar strengthened or weakened by 5% relative to all foreign currencies, all other variables held constant. In practice, the actual trading results may differ and the difference could be material.

March 31, 2015

Cash Forward and cash currency Net Impact on Investments equivalents contracts exposure* net assets Currency ($ 000) ($ 000) ($ 000) ($ 000) ($ 000)

United States dollars 11,053 205 (8,221) 3,037 United Kingdom pounds 1,632 - (1,149) 483 Other currencies 785 63 - 848

Total 13,470 268 (9,370) 4,368 218

As percent of net assets (%) 14.5 0.7

March 31, 2014


United States dollars 9,906 (2) - 9,904 United Kingdom pounds 1,963 299 (2,155) 107 Other currencies 1,439 22 - 1,461

Total 13,308 319 (2,155) 11,472 574


*includes both monetary and non-monetary financial instruments.


ii) Currency risk (continued)

April 1, 2013


United States dollars 8,292 139 (5,219) 3,212 United Kingdom pounds 1,928 482 (2,076) 334 Other currencies 299 230 - 529

Total 10,519 851 (7,295) 4,075 203


*includes both monetary and non-monetary financial instruments.

iii) Interest rate risk

As at March 31, 2015, March 31, 2014 and April 1, 2013, the Fund did not have a significant exposure to interest rate risk.

iv) Credit risk

As at March 31, 2015, March 31, 2014 and April 1, 2013, the Fund did not have a significant exposure to credit risk.

v) Other price risk

For this Fund, the most significant exposure to other price risk arises from its investment in equity securities. The table below illustrates the potential increase or decrease in the Fund’s net assets, had the prices on the respective stock exchanges for these securities increased or decreased by 10%, all other variables held constant. In practice, the actual trading results may differ and the difference could be material.

Increase by 10% Decrease by 10%

Impact on net assets ($ 000) (%) ($ 000) (%)

March 31, 2015 2,912 9.7 2,912 9.7

March 31, 2014 3,284 9.7 3,284 9.7

April 1, 2013 3,115 9.6 3,115 9.6

vi) Offsetting of financial assets and financial liabilities

The table below presents the recognized financial assets and financial liabilities that are subject to master netting arrangements or other similar agreements and the net impact on the Fund’s Statements of Financial Position if all set-off rights were exercised.

($ 000)

Gross amount presented in the Statement of

Financial Position Set-off amounts Net

March 31, 2015

Financial assets 110 (8) 102

Financial liabilities (11) 8 (3)

March 31, 2014

Financial assets 9 - 9

Financial liabilities - - -

April 1, 2013

Financial assets 77 - 77

Financial liabilities - - -



(d) Financial instrument risk

The tables below summarize the fair value of the Fund’s investments using the fair value categories described in Note 4.

as at March 31, 2015 ($ 000) Level 1 Level 2 Level 3 Total

Fixed income - - - - Equities 28,956 - 163 29,119

Total investments 28,956 - 163 29,119 Short-term investments - - - - Derivative assets - 110 - 110 Derivative liabilities - (11) - (11)

Total 28,956 99 163 29,218

as at March 31, 2014 ($ 000) Level 1 Level 2 Level 3 Total

Fixed income - - - - Equities 32,713 - 130 32,843

Total investments 32,713 - 130 32,843 Short-term investments - - - - Derivative assets - 9 - 9 Derivative liabilities - - - -

Total 32,713 9 130 32,852

as at April 1, 2013 ($ 000) Level 1 Level 2 Level 3 Total

Fixed income - - - - Equities 31,080 1 64 31,145

Total investments 31,080 1 64 31,145 Short-term investments - - - - Derivative assets - 77 - 77 Derivative liabilities - - - -

Total 31,080 78 64 31,222

In accordance with the Fund’s valuation policy, the Fund applies fair value adjustment factors to the quoted market prices for non-North American equities when North American intraday stock market movements exceed predetermined tolerances. The adjustment factors are applied in order to estimate the impact on fair values of events occurring between the close of the non-North American stock markets and the close of business for the Fund. If fair value adjustment factors are applied, non-North American equities are classified as Level 2. Consequently, during the periods, non-North American equities frequently transferred between Level 1 (unadjusted quoted market prices) and Level 2 (adjusted market prices). As at March 31, 2015, these securities were classified as Level 1 (March 31, 2014 and April 1, 2013 – Level 1). Other than as described above, there were no significant transfers between Level 1 and Level 2.


13. FUND SPECIFIC INFORMATION (continued)

(e) Fair value of investments

The tables below reconcile the investments measured at fair value using unobservable inputs (Level 3). Transfers in and out of Level 3 are determined as of the date of the change in circumstances that caused the transfer. The Manager has assessed the effect of changing the inputs into Level 3 valuations to reasonably possible alternatives and determined that they would not have a significant impact on the net assets attributable to securityholders of the Fund.

for the 12 months ended March 31, 2015 ($ 000) Fixed Income Equities Total

Balance – beginning of period - 130 130 Purchases - - - Sales - - - Net transfers in (out) - 1 1 Gains (losses) during the period:

Realized - - - Unrealized - 32 32

Balance – end of period - 163 163

Unrealized gains (losses) during the period attributable to securities held at end of period - 32 32

During the period, transfers into Level 3 were primarily due to a change in valuation of unlisted warrants to incorporate an unobserved input into the valuation model (previously Level 2).

for the 12 months ended March 31, 2014 ($ 000) Fixed Income Equities Total

Balance – beginning of period - 64 64 Purchases - 17 17 Sales - - - Net transfers in (out) - - - Gains (losses) during the period:




for the 12 months ended April 1, 2013 ($ 000) Fixed Income Equities Total

Balance – beginning of period - 54 54 Purchases - 4 4 Sales - - - Net transfers in (out) - - - Gains (losses) during the period:




(f) Transition to IFRS

The tables below reconcile the net assets and comprehensive income as previously reported under Canadian GAAP to IFRS.

Net Assets ($ 000)as at

March 31, 2014as at

April 1, 2013

Net assets as reported under Canadian GAAP 33,970 32,322

Revaluation of investments at FVTPL 19 27

Net assets attributable to securityholders 33,989 32,349

Comprehensive Income ($ 000)for the year ended

March 31, 2014

Net increase (decrease) in net assets from operations as reported under Canadian GAAP 3,815

Revaluation of investments at FVTPL (8)

Increase (decrease) in net assets attributable to securityholders from operations 3,807



(e) Fair value of investments (continued)

Independent Auditor’s Report MARCH 31, 2015

TO THE SECURITYHOLDERS OF IG AGF CANADIAN GROWTH CLASS (THE “FUND”)

We have audited the accompanying financial statements of the Fund, which comprise the statements of financial position as at March 31, 2015, March 31, 2014 and April 1, 2013, and the statements of comprehensive income, changes in financial position and cash flows for the periods ended March 31, 2015 and March 31, 2014, as indicated in note 1, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, 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 these financial statements based on 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 the audits 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, we consider 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 our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2015, March 31, 2014 and April 1, 2013, and its financial performance and cash flows for the periods ended March 31, 2015 and March 31, 2014, as indicated in note 1, in accordance with International Financial Reporting Standards.

Chartered Accountants

June 4, 2015

Winnipeg, Canada

ig agf canadian growth class - investors group · statements of financial position at march 31,...

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