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® Registered trade-mark of The Bank of Nova Scotia, used under licence.

™ Trade-mark of The Bank of Nova Scotia, used under licence.

The ScotiaFunds are managed by Scotia Asset Management L.P. Scotia Securities Inc. and Scotia Captial Inc. are corporate entities separate from, although wholly-owned by, The Bank of Nova Scotia. ScotiaMcLeod and ScotiaMcLeod Direct Investing and Scotia iTRADE are divisions of Scotia Capital Inc. Member CIPF.

“Standard & Poor’s®”, “S&P®”, and “S&P 500” are trademarks of The McGraw-Hill Companies and have been licensed for use by The Bank of Nova Scotia and its subsidiary companies. “TSX” is a trademark of The Toronto Stock Exchange and has been licensed for use by The Bank of Nova Scotia and its subsidiary companies. The Nasdaq 100 Index is published by the Nasdaq Stock Market, Inc. The Nasdaq Stock Market, Inc. has no connection with Scotia Securities Inc. and has not passed upon the merits of investing in the Scotia Mutual Funds.

June 30, 2010

Investing for the long termScotiaFunds Semi-Annual Reportto Unitholders

Economic Transition –Everything Seems to be Changing at Once

T he financial market turmoil surrounding the bailout ofGreece and sovereign debt problems in other European

nations probably won’t trigger the dreaded ‘double dip’.Neither will the big problems still confronting the U.S. housingand commercial real estate sectors. However, the legacy ofeconomic and financial challenges confronting many countriesand industries suggests that we will experience a rocky road torecovery – a journey that won’t be taking us back to the worldthat existed before the recession began.

The pathways from recession to recovery have been quitedifferent in Canada and the United States. Domestic economicconditions have been more resilient here than in the U.S., inlarge part because of the world-class strength of our financialsector and relatively better household, corporate andgovernment balance sheets. Canada has regained roughlythree out of four of the net jobs lost during the recessioncompared with about one in ten in the United States.Canadian home prices are near record levels at a time whenaverage prices in major U.S. urban centres are still nearly 30%below the peaks reached during the sub-prime financingmania. However, during the downturn, Canadian exports facedheavy headwinds because of the nose dive in U.S.-bound salesand the plunge in commodity prices. While the revival ofglobal growth has partially reversed this deterioration, exportrevenues are still only three-quarters of the levels reachedduring the height of the commodity boom in mid-2008. Therise in the loonie towards parity against the U.S. dollar hasdampened both sales and earnings.

As Canada and the U.S. move from recovery into renewedexpansion in 2011, growth is at risk of slowing materially.Governments here and in many countries will begin takingaction to substantially reduce their deficits; borrowing costs willbe rising from recent historic lows and the cyclical boost frominventory rebuilding will have run its course. Initiatives beingdiscussed by many governments to tax financial institutions,increase bank capital requirements and tighten credit practicesmay also diminish global growth prospects. The negativefallout from these initiatives would be less in Canada becauseof the inherent strengths of our banking and regulatorysystems and Ottawa’s decision to reject a new bank tax.

Canada’s fortuitous position as a resource-rich country in aresource-short world should help sustain our position as a topperformer among the major developed economies. But withU.S. growth slowing and both Europe and Japan stuck in lowgear for the foreseeable future, this won’t be a hard race towin. Over the next decade, international economic locomotionwill come increasingly from powerhouses such as China, Indiaand Brazil. Their influence on world trade and financial markets

also will grow substantially. In recognition of this globaleconomic transition, major international policy discussions anddecision-making have broadened beyond G8 nations.Beginning with the Toronto G20 Summit, this larger group ofnations is now officially recognized as the ‘premier forum forinternational economic cooperation’.

The changing global landscape is already having a big impacton Canada. We have lost bragging rights as top foreignsupplier to the U.S. market to China. At the same time,demand from China and other emerging markets hasunderpinned global commodity prices and the earnings ofCanadian resource producers. Rapidly rising incomes in thesehigh-growth countries are also fuelling an extraordinaryexpansion in their domestic demand. China, which hasreplaced Japan as the second-largest purchaser of Canadianexports, sells – and produces – more cars and trucks than theU.S., Canada and Mexico combined. Successfully tapping intothese new opportunities hinges on the willingness of Canadianbusinesses to explore unfamiliar markets and our ability toidentify niche products and services where our skills andresources provide a unique competitive edge.

The outperformance of emerging nations has significantconsequences with respect to energy use and the environmentthat will ultimately trigger a big transition in the way weproduce and distribute goods and services. China is already thelargest and fastest-growing car market in the world and reliesheavily on coal-fired power to generate its escalating energyrequirements. The trillions of dollars that will be spent over thenext decade to boost energy efficiency, contain GHG emissionsand improve air and water quality will spawn an array of newbusinesses and technologies. The number of ‘green’ jobscreated in Canada and other developed nations will likelyexceed those lost in traditional manufacturing by a widemargin.

As the economic importance of emerging nations andenvironmental initiatives gathers force, Canada and most otherdeveloped nations also will begin to experience a powerfuldemographic transition. The greying of the population willintensify upward pressure on health care and social securitycosts by mid-decade. The fiscal challenges will be particularlydifficult for debt-heavy European governments with relativelyolder populations. This demographic time bomb is a powerfulreason for governments in Canada and other jurisdictions totake decisive action on fiscal reform sooner rather than later.

Labour force participation rates will decline as the populationages. Within a decade, there will be only four working-age Canadians for every person 65 or older compared with a

S C O T I A F U N D S S E M I - A N N U A L R E P O R T T O U N I T H O L D E R S – 2 0 1 0

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6:1 ratio in the early 1990s. As this is happening, competitionfrom emerging nations and niche market opportunities in theirrapidly growing domestic markets will encourage Canadianemployers to become more specialized and focused on highervalue-added products and services. Even with a shift to morecapital-intensive processes, skilled labour shortages are boundto intensify.

The Canadian labour market has already experienced apronounced shift towards employees with education ortraining beyond high school. Even during last year’s recession,jobless rates for workers with post-secondary educationremained very low. The premium accruing to these workers willcontinue to rise significantly over the next decade as will thebenefits from a more rapid and successful integration ofimmigrants into their areas of expertise.

The big challenges created by an aging population willgenerate equally wide-ranging business and employmentopportunities. The health care system will have to beredesigned and delivery processes re-engineered to containsurging costs. Workforce training and retraining programs willbe in big demand. The retirement bulge also will createabundant demand for advisory and lifestyle products andservices.

When it comes to helping Canadian businesses and householdsadjust to the confluence of these new age, old age and greenage realities, our governments have a ’to do’ list that extendswell beyond reversing the recent run-up in federal andprovincial deficits. Tax reforms are already well on the way toestablishing a globally competitive tax environment for

businesses. Further improvements in workforce skills andlabour flexibility are also essential to maintain our nationalprosperity and enable us to compete with the best in theworld. High priority also must be given to enhancing theefficiency of Canada’s urban infrastructure.

Meeting these objectives, while simultaneously restoring abetter fiscal balance, requires a transformation in thinkingabout other big-ticket programs. In addition to health care,there is an urgent need to redesign and streamline the currentcomplex system of federal-provincial transfers. Programs suchas Employment Insurance should provide equal eligibility forbenefits and retraining for all Canadians. There is little if anyleeway for governments to use traditional tools, such as publicsubsidies, to insulate domestic businesses from the powerfulforces reshaping the global economic landscape. Scarce publicresources should be used to enhance our globalcompetitiveness which ultimately is the foundation of ournational prosperity.

Warren Jestin

Senior Vice-Presidentand Chief Economist

Scotiabank Group


2

Scotia T-Bill Fund (Unaudited)

S T AT E M E N T O F N E T A S S E T SAs at

June 30,2010

December 31,2009

ASSETSInvestments at fair value $163,842,892 $162,930,780Cash 103,390 99,516Accrued investment income 2,094 4,293

163,948,376 163,034,589

LIABILITIESDistributions payable 48 –Accrued expenses 56,911 –

56,959 –

Net Assets $163,891,417 $163,034,589

NET ASSETS PER CLASSClass A Units $163,891,417 $163,034,589

UNITS OUTSTANDINGClass A Units 16,389,142 16,303,459

NET ASSETS PER UNITClass A Units $ 10.00 $ 10.00

S T AT E M E N T O F O P E R AT I O N SFor the six month periods ended June 30,

2010 2009INVESTMENT INCOMEInterest $ 273,476 $ 850,769Securities lending 24,456 23,765

297,932 874,534

EXPENSESManagement fees (note 5) 832,288 972,191Audit fees 8,383 8,460Independent Review Committee fees 1,080 1,244Custodian fees 1,619 1,580Filing fees 11,169 11,414Legal fees 4,052 5,147Unitholder reporting costs 21,160 29,579Unitholder administration, service fees and GST 185,639 239,923Overdraft charges 8 173

1,065,398 1,269,711Absorbed expenses (808,714) (532,493)

256,684 737,218

Net investment income (loss) 41,248 137,316

Increase (decrease) in Net Assets from operations $ 41,248 $ 137,316

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 41,248 $ 137,316

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ – $ 0.01

S TA T E M E N T O F C H A N G E S I N N E T A S S E T SFor the six month periods ended June 30,

2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $163,034,589 $195,989,729

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 41,248 137,316

DISTRIBUTIONS TO UNITHOLDERSFrom net investment income

Class A Units (41,248) (137,316)

UNIT TRANSACTIONSProceeds from issue

Class A Units 45,521,755 40,618,493Reinvested distributions

Class A Units 40,940 135,705Payments on redemption

Class A Units (44,705,867) (50,806,609)

856,828 (10,052,411)

INCREASE (DECREASE) IN NET ASSETSClass A Units 856,828 (10,052,411)

NET ASSETS – END OF PERIODClass A Units $163,891,417 $185,937,318


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

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S T AT E M E N T O F I N V E S T M E N T P O R T F O L I OAs at June 30, 2010

FaceValue ($) Issuer

AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS – 100.0%Treasury Bills – 73.4%

56,005,000 Government of Canada0.27% due Jul. 8, 2010 55,991,060 56,002,120

48,130,000 Government of Canada0.30% due Aug. 19, 2010 48,069,356 48,110,704

16,150,000 Government of Canada0.64% due Oct. 14, 2010 16,114,470 16,120,392

120,174,886 120,233,216

Short-Term Bonds – 26.6%1,600,000 Alberta Municipal Finance Corporation (Floating Rate)

0.85% due Dec. 8, 2011 1,600,000 1,600,81313,200,000 Canada Housing Trust No. 1

3.55% due Sep. 15, 2010 13,279,404 13,415,65413,720,000 Financement Quebec (Floating Rate)

0.64% due Apr. 25, 2012 13,673,782 13,689,7552,500,000 Province of Manitoba (Floating Rate)

0.73% due May 2, 2012 2,488,848 2,491,786800,000 Province of Manitoba (Floating Rate)

1.21% due Sep. 4, 2012 805,363 806,1032,650,000 Province of Manitoba (Floating Rate)

1.00% due Mar. 15, 2013 2,650,000 2,651,0798,954,000 Province of Quebec (Floating Rate)

0.77% due Aug. 6, 2011 8,944,134 8,954,486

43,441,531 43,609,676

TOTAL INVESTMENT PORTFOLIO 163,616,417 163,842,892

OTHER ASSETS, LESS LIABILITIES – 0.0% 48,525

NET ASSETS – 100.0% 163,891,417

S U M M A R Y O F I N V E S T M E N T P O R T F O L I O

Investment Category June 30, 2010 December 31, 2009

Percentage of Net Assets (%)

Treasury Bills 73.4 71.7Short-Term Bonds 26.6 28.2

S U P P L E M E N TA R Y S C H E D U L E SAs at June 30, 2010 and December 31, 2009

Interest rate risk (note 3)The table below summarizes the Fund’s exposure to interest rate risk by theremaining term to maturity of the Fund’s portfolio of bond and debentureinstruments.

Bond and MoneyMarket Instruments* June 30, 2010 December 31, 2009

Less than 1 year $163,842,892 $162,930,7801-3 years – –3-5 years – –5-10 years – –H 10 years – –

Total $163,842,892 $162,930,780

* Excludes cash

Credit risk (note 3)The table below summarizes the credit rating of the bond and debentureinstruments, excluding cash, held by the Fund.

Percentage ofTotal Debt

Securities (%)Percentage ofNet Assets (%)



June 30, 2010 December 31, 2009

Short-Term RatingR1-High 73.4 73.4 71.7 71.7Bond Credit RatingAAA 9.2 9.2 9.4 9.3AA – – 1.4 1.4A 17.4 17.4 17.5 17.5

Total 100.0 100.0 100.0 99.9

Liquidity risk (note 3)The table below summarizes a maturity analysis of cash flows associated withthe maturities of the Fund’s financial liabilities:

Less than 3 months Less than 3 months

June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $56,959 $ –

Fair value classification (note 2)The tables below illustrate the classification of the Fund’s financial instrumentswithin the fair value hierarchy as at June 30, 2010 and December 31, 2009,respectively.

June 30, 2010Level 1 Level 2 Level 3 Total

Money Market Instruments $ – $163,842,892 $ – $163,842,892

December 31, 2009Level 1 Level 2 Level 3 Total


During the period, there were no transfers between Level 1 and Level 2.

S C O T I A F U N D S S E M I - A N N U A L R E P O R T T O U N I T H O L D E R S – 2 0 1 0C

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Scotia T-Bill Fund (Unaudited – Continued)

Scotia Premium T-Bill Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $758,517,306 $854,111,379Cash 99,659 103,613Accrued investment income 10,169 22,405Receivable for management fees rebate 155,888 173,211

758,783,022 854,410,608

LIABILITIESDistributions payable 4,348 4,352Accrued expenses 278,464 –

282,812 4,352

Net Assets $758,500,210 $854,406,256





2010 2009INVESTMENT INCOMEInterest $ 1,375,386 $ 4,263,149Securities lending 126,186 143,287

1,501,572 4,406,436

EXPENSESManagement fees (note 5) 2,002,477 2,348,124Audit fees 9,862 10,517Independent Review Committee fees 130 169Custodian fees 5,366 5,776Filing fees 15,962 19,642Legal fees 1,897 2,116Unitholder reporting costs 5,672 7,219Unitholder administration, service fees and GST 106,503 162,024Overdraft charges 21 –

2,147,890 2,555,587Rebated and Absorbed expenses (1,784,992) (1,050,375)

362,898 1,505,212

Net investment income (loss) 1,138,674 2,901,224

Increase (decrease) in Net Assets from operations $ 1,138,674 $ 2,901,224

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 1,138,674 $ 2,901,224

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.01 $ 0.03


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 854,406,256 $1,000,974,230

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 1,138,674 2,901,224


Class A Units (1,138,674) (2,901,224)



Class A Units 1,117,040 2,932,182Payments on redemption

Class A Units (317,526,114) (430,053,617)

(95,906,046) (69,223,860)

INCREASE (DECREASE) IN NET ASSETSClass A Units (95,906,046) (69,223,860)

NET ASSETS – END OF PERIODClass A Units $ 758,500,210 $ 931,750,370


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AverageCost ($)

FairValue ($)


277,340,000 Government of Canada0.27% due Jul. 8, 2010 277,273,212 277,325,876

167,355,000 Government of Canada0.30% due Aug. 19, 2010 167,144,076 167,287,569

89,100,000 Government of Canada0.64% due Oct. 14, 2010 88,903,980 88,936,650

533,321,268 533,550,095

Short-Term Bonds – 29.7%8,600,000 Alberta Municipal Finance Corporation (Floating Rate)

0.85% due Dec. 8, 2011 8,600,000 8,604,37067,800,000 Canada Housing Trust No. 1

3.55% due Sep. 15, 2010 68,207,848 68,907,68076,730,000 Financement Quebec (Floating Rate)

0.64% due Apr. 25, 2012 76,465,645 76,554,98412,500,000 Province of Manitoba (Floating Rate)

0.73% due May 2, 2012 12,444,242 12,458,9294,200,000 Province of Manitoba (Floating Rate)

1.21% due Sep. 4, 2012 4,228,158 4,232,03913,850,000 Province of Manitoba (Floating Rate)

1.00% due Mar. 15, 2013 13,850,000 13,855,63740,350,000 Province of Quebec (Floating Rate)

0.77% due Aug. 6, 2011 40,306,922 40,353,572

224,102,815 224,967,211


OTHER ASSETS, LESS LIABILITIES – 0.0% (17,096)

NET ASSETS – 100.0% 758,500,210




Treasury Bills 70.3 71.4Short-Term Bonds 29.7 28.6



Bonds and MoneyMarket Instruments* June 30, 2010 December 31, 2009


Total $758,517,306 $854,111,379

* Excludes cash






June 30, 2010 December 31, 2009

Short-Term RatingR1-High 70.3 70.3 71.4 71.4Bond Credit RatingAAA 10.2 10.2 9.2 9.2AA – – 0.7 0.7A 19.5 19.5 18.7 18.7

Total 100.0 100.0 100.0 100.0



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $282,812 $4,352








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Scotia Premium T-Bill Fund (Unaudited – Continued)


6

Scotia Money Market Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $2,390,749,244 $2,753,438,825Cash 101,794 95,437Accrued investment income 52,167 178,412

2,390,903,205 2,753,712,674

LIABILITIESPayable for securities purchased 30,100,000 –Distributions payable 9,925 27,903Accrued expenses 683,585 –

30,793,510 27,903

Net Assets $2,360,109,695 $2,753,684,771

NET ASSETS PER CLASSClass A Units $ 906,921,372 $ 998,315,829Advisor Class Units $ 6,657,246 $ 7,269,580Premium Class Units $ 356,329,499 $ 557,115,939Class I Units $ 15,503,716 $ 11,781,019Manager Class Units* $1,074,697,862 $1,179,202,404

UNITS OUTSTANDINGClass A Units 90,692,137 99,831,583Advisor Class Units 665,725 726,958Premium Class Units 35,632,950 55,711,594Class I Units 1,550,372 1,178,102Manager Class Units* 107,469,786 117,920,240

NET ASSETS PER UNITClass A Units $ 10.00 $ 10.00Advisor Class Units $ 10.00 $ 10.00Premium Class Units $ 10.00 $ 10.00Class I Units $ 10.00 $ 10.00Manager Class Units* $ 10.00 $ 10.00


2010 2009INVESTMENT INCOMEInterest $ 9,263,993 $20,749,115Securities lending 848 11

9,264,841 20,749,126

EXPENSESManagement fees (note 5) 5,633,723 5,856,930Audit fees 11,889 12,207Independent Review Committee fees 2,294 2,507Custodian fees 22,207 19,558Filing fees 76,216 48,599Legal fees 6,808 8,061Unitholder reporting costs 43,643 55,638Unitholder administration, service fees and GST 589,013 730,100Overdraft charges – 2,458

6,385,793 6,736,058Absorbed expenses (2,476,178) (115,273)

3,909,615 6,620,785


Increase (decrease) in Net Assets from operations $ 5,355,226 $14,128,341

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 458,985 $ 3,516,064Advisor Class Units $ 3,399 $ 32,896Premium Class Units $ 927,835 $ 843,533Class I Units $ 48,510 $ 119,536Manager Class Units* $ 3,916,497 $ 9,616,312

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ – $ 0.03Advisor Class Units $ – $ 0.03Premium Class Units $ 0.02 $ 0.06Class I Units $ 0.03 $ 0.09Manager Class Units* $ 0.03 $ 0.09


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 998,315,829 $1,040,858,259Advisor Class Units 7,269,580 9,497,322Premium Class Units 557,115,939 34,769,740Class I Units 11,781,019 13,561,211Manager Class Units* 1,179,202,404 1,006,082,162

2,753,684,771 2,104,768,694

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 458,985 3,516,064Advisor Class Units 3,399 32,896Premium Class Units 927,835 843,533Class I Units 48,510 119,536Manager Class Units* 3,916,497 9,616,312

5,355,226 14,128,341


Class A Units (458,985) (3,516,064)Advisor Class Units (3,399) (32,896)Premium Class Units (927,835) (843,533)Class I Units (48,510) (119,536)Manager Class Units* (3,916,497) (9,616,312)

(5,355,226) (14,128,341)


Class A Units 453,378,622 644,077,999Advisor Class Units 3,689,083 11,610,636Premium Class Units 254,421,723 425,756,728Class I Units 4,708,150 1,204,815Manager Class Units* 918,031,235 1,007,723,687

Reinvested distributionsClass A Units 453,575 3,479,420Advisor Class Units 3,371 32,533Premium Class Units 860,895 837,958Class I Units 48,507 119,536Manager Class Units* 3,862,832 9,524,347

Payments on redemptionClass A Units (545,226,654) (593,047,248)Advisor Class Units (4,304,788) (10,693,262)Premium Class Units (456,069,058) (109,267,992)Class I Units (1,033,960) (772,823)Manager Class Units* (1,026,398,609) (957,495,168)

(393,575,076) 433,091,166

INCREASE (DECREASE) IN NET ASSETSClass A Units (91,394,457) 54,510,171Advisor Class Units (612,334) 949,907Premium Class Units (200,786,440) 317,326,694Class I Units 3,722,697 551,528Manager Class Units* (104,504,542) 59,752,866

(393,575,076) 433,091,166

NET ASSETS – END OF PERIODClass A Units 906,921,372 1,095,368,430Advisor Class Units 6,657,246 10,447,229Premium Class Units 356,329,499 352,096,434Class I Units 15,503,716 14,112,739Manager Class Units* 1,074,697,862 1,065,835,028

$ 2,360,109,695 $2,537,859,860

* Scotia Private Client Units renamed Manager Class Units effective December 11, 2009.


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As at June 30, 2010


AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS – 101.3%Bankers’ Acceptances – 3.8%

6,000,000 HSBC Bank Canada0.57% due Jul. 7, 2010 5,996,700 5,999,434



2,615,000 Royal Bank of Canada0.50% due Jul. 9, 2010 2,614,242 2,614,711




13,200,000 Toronto-Dominion Bank, The0.49% due Jul. 14, 2010 13,196,304 13,197,712

90,362,539 90,379,206

Bearers’ Deposit Notes – 0.6%6,615,000 Bank of Montreal

0.55% due Aug. 10, 2010 6,610,833 6,611,0316,740,000 Manulife Bank of Canada

0.57% due Aug. 12, 2010 6,735,484 6,735,589

13,346,317 13,346,620

Commercial Paper – 37.3%500,000 Canada Pension Plan Investment Board

0.51% due Jul. 6, 2010 499,875 499,96514,000,000 Canada Pension Plan Investment Board

0.49% due Jul. 8, 2010 13,996,220 13,998,67713,500,000 Canada Pension Plan Investment Board

0.51% due Jul. 12, 2010 13,495,140 13,497,94410,000,000 Caterpillar Inc.



0.60% due Aug. 10, 2010 11,487,120 11,492,42419,000,000 Caterpillar Inc.

0.60% due Aug. 16, 2010 18,984,090 18,985,61952,000,000 Cenovus Energy Inc.

0.54% due Jul. 26, 2010 51,978,720 51,980,94723,400,000 Coca-Cola Co.



0.52% due Jul. 7, 2010 29,397,595 29,401,47321,200,000 Enbridge Inc.



0.69% due Aug. 23, 2010 10,936,970 10,939,03810,000,000 Epcor Utilities

0.63% due Jul. 5, 2010 9,998,800 9,999,3143,200,000 Epcor Utilities

0.63% due Jul. 7, 2010 3,199,616 3,199,67112,500,000 Epcor Utilities

0.60% due Jul. 12, 2010 12,497,125 12,497,7416,100,000 General Electric Company

0.55% due Jul. 13, 2010 6,098,719 6,098,9024,400,000 General Electric Company

0.63% due Aug. 10, 2010 4,396,348 4,396,9573,300,000 General Electric Company

0.64% due Aug. 13, 2010 3,297,063 3,297,524


AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS (cont’d)Commercial Paper (cont’d)

5,500,000 General Electric Company0.66% due Aug. 25, 2010 5,493,730 5,494,526

4,900,000 General Electric Company0.75% due Sep. 9, 2010 4,892,160 4,892,964

3,000,000 Honda Canada Finance Inc.0.57% due Jul. 7, 2010 2,998,350 2,999,717



11,000,000 Honda Canada Finance Inc.0.62% due Aug. 17, 2010 10,988,780 10,991,211

35,000,000 Imperial Oil Limited0.51% due Jul. 8, 2010 34,995,100 34,996,569

31,000,000 Imperial Oil Limited0.51% due Jul. 15, 2010 30,993,490 30,993,924

20,000,000 Nova Scotia Power Inc.0.55% due Jul. 12, 2010 19,983,200 19,996,700

10,000,000 Omers Realty Corporation0.54% due Jul. 5, 2010 9,995,400 9,999,406





37,185,000 Suncor Inc.0.57% due Jul. 6, 2010 37,164,526 37,182,099



9,300,000 Suncor Inc.0.74% due Aug. 18, 2010 9,289,119 9,290,995

6,000,000 Suncor Inc.0.74% due Aug. 23, 2010 5,992,560 5,993,536

20,000,000 Telus Corporation0.59% due Jul. 7, 2010 19,990,900 19,998,048



1,300,000 Telus Corporation0.58% due Aug. 4, 2010 1,299,272 1,299,293

6,500,000 Telus Corporation0.71% due Aug. 26, 2010 6,489,275 6,492,934

11,000,000 Terasen Gas Inc.0.52% due Jul. 27, 2010 10,995,570 10,995,913

7,000,000 Terasen Gas Inc.0.50% due Jul. 29, 2010 6,997,130 6,997,321

20,000,000 Toyota Credit Canada Inc.0.53% due Jul. 9, 2010 19,987,200 19,997,673


16,000,000 Toyota Credit Canada Inc.0.66% due Aug. 9, 2010 15,982,080 15,988,728

22,200,000 Toyota Credit Canada Inc.0.70% due Aug. 16, 2010 22,174,026 22,180,413

4,205,000 TransCanada PipeLines Ltd.0.52% due Jul. 7, 2010 4,203,739 4,204,640

4,500,000 TransCanada PipeLines Ltd.0.62% due Aug. 9, 2010 4,493,880 4,497,017

23,050,000 Union Gas Ltd.0.55% due Jul. 2, 2010 23,048,617 23,049,654


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Scotia Money Market Fund (Unaudited – Continued)

S T AT E M E N T O F I N V E S T M E N T P O R T F O L I O


AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS (cont’d)Commercial Paper (cont’d)

9,000,000 Vancouver City0.35% due Jul. 7, 2010 8,995,950 8,999,483

26,000,000 Wells Fargo Company0.54% due Jul. 7, 2010 25,986,220 25,997,703


10,000,000 Wells Fargo Company0.64% due Aug. 19, 2010 9,990,900 9,991,425


15,000,000 Westcoast Energy Inc.0.55% due Jul. 6, 2010 14,995,950 14,998,875

9,800,000 Woodbridge Finance Corporation0.56% due Jul. 8, 2010 9,794,708 9,798,942



21,000,000 Woodbridge Finance Corporation0.61% due Aug. 17, 2010 20,982,610 20,983,590

880,566,142 880,774,523

Short-Term Bonds – 59.6%74,625,000 407 International Inc.

4.90% due Oct. 4, 2010 75,406,163 76,275,36329,300,000 Bank of Montreal (Floating Rate)

0.75% due Feb. 1, 2011 29,300,000 29,334,76753,400,000 Bank of Montreal (Floating Rate)

0.86% due Jun. 10, 2011 53,400,000 53,424,11723,300,000 Bank of Montreal (Floating Rate)

1.62% due Jul. 14, 2011 23,441,841 23,521,72318,913,000 Bank of Nova Scotia, The

5.00% due Sep. 13, 2010 19,075,483 19,355,58140,312,000 Bank of Nova Scotia, The (Floating Rate)

1.10% due Feb. 7, 2011 40,325,916 40,390,94359,200,000 Bank of Nova Scotia, The (Floating Rate)

1.67% due Jun. 15, 2011 59,531,288 59,571,5529,000,000 Bank of Nova Scotia, The (Floating Rate)

1.38% due Jun. 23, 2011 9,020,088 9,022,45335,185,000 Canadian Imperial Bank of Commerce

4.95% due Sep. 2, 2010 35,438,661 36,006,59146,700,000 Canadian Imperial Bank of Commerce ( Floating Rate)

0.95% due Oct. 3, 2011 46,700,000 46,807,74035,000,000 Canadian Imperial Bank of Commerce ( Floating Rate)

1.10% due Nov. 1, 2011 35,007,248 35,068,086125,424,000 CARDS II Trust

3.87% due Oct. 15, 2010 126,479,482 127,487,1359,314,000 Caterpillar Financial Services Limited

4.34% due Dec. 6, 2010 9,454,292 9,480,79911,007,000 Canadian Utilities Limited

11.40% due Aug. 15, 2010 11,149,150 11,617,0991,126,000 City of Toronto, Ontario

6.25% due Aug. 3, 2010 1,131,522 1,160,10026,000,000 Enbridge Inc.

0.58% due Jul. 7, 2010 25,987,520 25,997,5042,871,000 GE Capital Canada Funding Company (Floating Rate)

0.77% due Jul. 21, 2010 2,868,596 2,869,15024,749,000 GE Capital Canada Funding Company

4.75% due May 2, 2011 25,311,059 25,499,535118,000,000 Genesis Trust (Floating Rate)

0.71% due Sep. 15, 2011 117,550,985 117,581,39156,408,000 Golden Credit Card Trust

4.25% due Feb. 15, 2011 57,419,878 58,314,75256,011,000 Greater Toronto Airports Authority

6.70% due Jul. 19, 2010 56,166,028 57,845,42933,251,000 Honda Canada Finance Inc.

5.31% due Nov. 30, 2010 33,855,600 34,000,241


AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS (cont’d)Short-Term Bonds (cont’d)

29,700,000 HSBC Bank Canada (Floating Rate)0.98% due Jun. 22, 2011 29,671,145 29,676,691

1,534,000 HSBC Bank of Canada5.31% due Oct. 12, 2010 1,549,048 1,566,630

40,000,000 Hydro One Inc.3.89% due Nov. 19, 2010 40,498,560 40,676,146

1,165,000 John Deere Capital Corporation4.40% due Mar. 30, 2011 1,189,947 1,202,762

18,556,000 John Deere Credit Inc.5.00% due Jul. 6, 2010 18,566,626 19,015,149

38,883,000 John Deere Credit Inc.5.25% due Oct. 18, 2010 39,376,980 39,784,137

18,800,000 Manulife Bank of Canada (Floating Rate)0.92% due Oct. 14, 2010 18,800,000 18,836,616

14,450,000 Manulife Bank of Canada (Floating Rate)1.86% due Jun. 15, 2011 14,490,976 14,501,923

30,100,000 Manulife Bank of Canada (Floating Rate)1.12% due Jan. 5, 2012 30,100,000 30,100,000

77,200,000 National Bank of Canada (Floating Rate)0.77% due Mar. 8, 2011 77,200,000 77,236,528

25,000,000 Province of Alberta (Floating Rate)1.11% due Jun. 12, 2012 25,000,000 25,013,521

5,000,000 Royal Bank of Canada (Floating Rate)1.07% due Sep. 27, 2010 5,003,843 5,004,291

18,333,000 Royal Bank of Canada (Floating Rate)1.28% due Sep. 27, 2010 18,343,831 18,345,751

10,000,000 Royal Bank of Canada (Floating Rate)1.52% due Jul. 17, 2011 10,071,854 10,102,842

8,000,000 Royal Bank of Canada (Floating Rate)1.37% due May 11, 2012 8,036,804 8,051,735

25,343,000 Toronto-Dominion Bank, The (Floating Rate)1.17% due Nov. 19, 2010 25,375,243 25,409,147

35,700,000 Toronto-Dominion Bank, The (Floating Rate)1.76% due Apr. 15, 2011 35,982,223 36,008,382

34,800,000 Toronto-Dominion Bank, The (Floating Rate)1.63% due May 2, 2011 34,986,906 35,030,909

18,882,000 TransCanada PipeLines Ltd.10.50% due Aug. 20, 2010 19,127,496 19,839,483

14,042,000 TransCanada PipeLines Ltd.4.30% due Jan. 13, 2011 14,290,811 14,571,031

10,000,000 Wells Fargo Canada Corporation4.45% due Feb. 28, 2011 10,180,417 10,330,389

2,352,000 Westcoast Energy Inc.12.55% due Nov. 15, 2010 2,451,458 2,488,356

22,310,000 Woodbridge Finance Corporation5.32% due Oct. 18, 2010 22,587,919 22,824,425

1,396,902,887 1,406,248,895

TOTAL INVESTMENT PORTFOLIO 2,381,177,885 2,390,749,244

OTHER ASSETS, LESS LIABILITIES – (1.3%) (30,639,549)

NET ASSETS – 100.0% 2,360,109,695




Bankers’ Acceptances 3.8 8.0Bearers’ Deposit Notes 0.6 1.4Commercial Paper 37.3 30.0Short-Term Bonds 59.6 60.6


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Bonds and MoneyMarket Instruments* June 30, 2010 December 31, 2009

Less than 1 year $2,390,749,244 $2,753,438,8251-3 years – –3-5 years – –5-10 years – –H 10 years – –

Total $2,390,749,244 $2,753,438,825

* Excludes cash






June 30, 2010 December 31, 2009

Short-Term RatingR1-High 10.1 10.3 14.2 14.2R1-Middle 12.7 12.8 9.9 9.9R1-Low 19.5 19.7 15.3 15.3Bond Credit RatingAAA 13.7 13.9 15.1 15.1AA 29.4 29.8 25.1 25.1A 14.6 14.8 20.4 20.4

Total 100.0 101.3 100.0 100.0



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $30,793,510 $27,903



Money Market Instruments $ – $2,390,749,244 $ – $2,390,749,244


Money Market Instruments $ – $2,753,438,825 $ – $2,753,438,825



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10

Scotia U.S. $ Money Market Fund (Unaudited)


June 30,2010

December 31,2009

U.S.$ U.S.$ASSETSInvestments at fair value $115,475,254 $113,509,865Cash 28,945 99,313Accrued investment income 175,438 177,566

115,679,637 113,786,744

LIABILITIESDistributions payable 20 –Accrued expenses 33,039 –

33,059 –

Net Assets $115,646,578 $113,786,744





2010 2009U.S.$ U.S.$

INVESTMENT INCOMEInterest $ 158,311 $ 467,254

EXPENSESManagement fees (note 5) 575,428 527,045Audit fees 8,383 8,576Independent Review Committee fees 114 127Custodian fees 2,284 2,707Filing fees 9,814 10,531Legal fees 1,861 2,022Unitholder reporting costs 5,420 6,352Unitholder administration, service fees and GST 44,683 60,239

647,987 617,599Absorbed expenses (518,206) (227,319)

129,781 390,280


Increase (decrease) in Net Assets from operations $ 28,530 $ 76,974

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 28,530 $ 76,974

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ – $ 0.01


2010 2009U.S.$ U.S.$

NET ASSETS – BEGINNING OF PERIODClass A Units $113,786,744 $105,066,448

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 28,530 76,974


Class A Units (28,530) (76,974)




Class A Units (46,145,986) (68,937,242)

1,859,834 6,814,717

INCREASE (DECREASE) IN NET ASSETSClass A Units 1,859,834 6,814,717



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As at June 30, 2010FaceValue ($) Issuer

AverageCost ($)

FairValue ($)

U.S.$ U.S.$ U.S.$MONEY MARKET INSTRUMENTS – 99.8%Promissory Notes – 14.5%

700,000 Province of British Columbia0.15% due Jul. 8, 2010 699,608 699,980

8,725,000 Province of Quebec0.22% due Jul. 21, 2010 8,720,376 8,723,924

500,000 Province of Quebec0.25% due Aug. 17, 2010 499,710 499,838

1,220,000 Province of Quebec0.26% due Aug. 26, 2010 1,219,256 1,219,510

5,700,000 Province of Quebec0.27% due Sep. 21, 2010 5,695,953 5,696,506

16,834,903 16,839,758

Bankers’ Acceptances – 8.0%1,400,000 Bank of Montreal

0.35% due Aug. 25, 2010 1,398,754 1,399,255525,000 Bank of Montreal

0.40% due Sep. 24, 2010 524,375 524,504600,000 Canadian Imperial Bank of Commerce

0.28% due Aug. 24, 2010 599,712 599,7493,700,000 Canadian Imperial Bank of Commerce

0.44% due Sep. 2, 2010 3,695,782 3,697,143330,000 Canadian Imperial Bank of Commerce

0.38% due Sep. 16, 2010 329,696 329,731500,000 Canadian Imperial Bank of Commerce

0.40% due Sep. 24, 2010 499,445 499,528240,000 Toronto-Dominion Bank, The

0.19% due Jul. 7, 2010 239,964 239,9922,000,000 Toronto-Dominion Bank, The

0.80% due Nov. 12, 2010 1,984,560 1,994,089

9,272,288 9,283,991

Bearers’ Deposit Notes – 7.8%3,600,000 Alberta Treasury Branch

0.25% due Aug. 16, 2010 3,597,804 3,598,852800,000 Bank of Montreal

0.35% due Aug. 24, 2010 799,416 799,5801,800,000 National Bank of Canada

0.30% due Jul. 8, 2010 1,797,246 1,799,8951,100,000 National Bank of Canada

0.34% due Nov. 3, 2010 1,097,195 1,098,706100,000 Royal Bank of Canada

0.26% due Jul. 22, 2010 99,935 99,985600,000 Royal Bank of Canada

0.40% due Aug. 23, 2010 599,418 599,6451,000,000 Royal Bank of Canada

0.40% due Aug. 24, 2010 999,000 999,400

8,990,014 8,996,063

Commercial Paper – 37.4%2,200,000 American Honda Finance Corporation

0.26% due Jul. 13, 2010 2,199,054 2,199,8111,000,000 American Honda Finance Corporation

0.27% due Aug. 31, 2010 998,680 999,5431,000,000 Bank of Nova Scotia, The

0.25% due Jul. 12, 2010 999,370 999,924775,000 BASF AKTIENGESELLSCHAFT

0.24% due Jul. 6, 2010 774,729 774,974800,000 Cenovus Energy Inc.

0.34% due Jul. 22, 2010 799,824 799,8392,250,000 Coca-Cola Co

0.20% due Aug. 10, 2010 2,247,998 2,249,499400,000 Export Development Canada

0.16% due Aug. 3, 2010 399,680 399,9421,900,000 Export Development Canada

0.22% due Sep. 22, 2010 1,897,891 1,899,0333,000,000 General Electric Company

0.37% due Oct. 19, 2010 2,994,390 2,996,6095,450,000 HSBC Bank Canada

0.02% due Aug. 11, 2010 5,446,545 5,448,1563,200,000 Nestle Capital Corporation

0.30% due Sep. 13, 2010 3,197,600 3,198,027


AverageCost ($)

FairValue ($)

U.S.$ U.S.$ U.S.$MONEY MARKET INSTRUMENTS (cont’d)Commercial Paper (cont’d)

185,000 Province of British Columbia0.21% due Jul. 26, 2010 184,869 184,973

1,300,000 Province of Ontario0.20% due Jul. 12, 2010 1,299,545 1,299,921


800,000 Province of Ontario0.25% due Aug. 17, 2010 799,504 799,741

1,160,000 Province of Ontario0.26% due Sep. 2, 2010 1,159,223 1,159,474

500,000 Province of Ontario0.30% due Sep. 7, 2010 499,420 499,716

4,250,000 Province of Ontario0.27% due Sep. 17, 2010 4,247,110 4,247,523


1,000,000 Transcanada Keystone0.48% due Jul. 8, 2010 999,240 999,907

1,800,000 Transcanada Keystone0.65% due Aug. 30, 2010 1,796,922 1,798,056



43,235,142 43,251,765

Short-Term Bonds – 32.1%1,000,000 Bank of Montreal (Floating Rate)

0.40% due Jun. 13, 2011 1,000,285 1,000,9452,000,000 Bank of Montreal (Floating Rate)

0.53% due Aug. 14, 2012 1,993,589 1,994,9434,500,000 Bank of Nova Scotia, The (Floating Rate)

0.79% due Mar. 12, 2012 4,499,189 4,500,7284,200,000 Citigroup Inc. (Floating Rate)

0.44% due Jul. 30, 2010 4,201,263 4,204,345500,000 FirstEnergy Corp. (Floating rate)

0.96% due Aug. 19, 2010 500,254 500,8021,370,000 KFW International Finance (Floating Rate)

0.81% due Mar. 2, 2011 1,373,127 1,373,9731,900,000 Pfizer Inc. (Floating rate)

2.49% due Mar. 15, 2011 1,927,072 1,928,9994,355,000 Province of Ontario (Floating Rate)

0.95% due May 22, 2012 4,380,111 4,384,4638,100,000 Province of Ontario (Floating Rate)

0.61% due Nov. 19, 2012 8,108,245 8,114,0103,600,000 Royal Bank of Canada (Floating Rate)

0.35% due Dec. 9, 2010 3,600,000 3,600,7353,000,000 Royal Dutch Shell PLC (Floating Rate)

0.57% due Sep. 22, 2011 2,998,494 2,998,8652,500,000 Toronto-Dominion Bank, The (Floating Rate)

0.35% due Nov. 5, 2010 2,500,260 2,500,869

37,081,889 37,103,677



NET ASSETS – 100.0% 115,646,578




Promissory Notes 14.5 22.3Bankers’ Acceptances 8.0 7.4Bearers’ Deposit Notes 7.8 24.7Commercial Paper 37.4 17.9Short-Term Bonds 32.1 27.4


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Scotia U.S. $ Money Market Fund (Unaudited – Continued)


Scotia U.S. $ Money Market Fund (Unaudited – Continued)



Bonds and MoneyMarket Instruments*

June 30, 2010(U.S. $)

December 31, 2009(U.S. $)


Total $115,475,254 $113,509,865

* Excludes cash






June 30, 2010 December 31, 2009

Short-Term RatingR1-High 24.4 24.4 32.3 32.2R1-Middle 37.7 37.6 35.9 35.8R1-Low 5.7 5.7 4.3 4.3Bond Credit RatingAAA 3.6 3.6 4.5 4.5AA 23.8 23.7 17.9 17.8A 3.6 3.6 5.1 5.1Unrated 1.2 1.2 – –

Total 100.0 99.8 100.0 99.7


Less than 3 months(U.S. $)


June 30, 2010 December 31, 2009



June 30, 2010Level 1(U.S. $)

Level 2(U.S. $)

Level 3(U.S. $)

Total(U.S. $)


December 31, 2009Level 1(U.S. $)

Level 2(U.S. $)

Level 3(U.S. $)

Total(U.S. $)




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Scotia Short-Mid Government Bond Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $602,195,545 $525,620,408Cash 99,680 100,759Accrued investment income 4,042,570 3,077,504

606,337,795 528,798,671

LIABILITIESPayable for securities purchased – 15,167,734Distributions payable 185,822 1,880Accrued expenses 40,790 21,274

226,612 15,190,888

Net Assets $606,111,183 $513,607,783

NET ASSETS PER CLASSClass I Units $ 46,504,791 $ 21,618,045Manager Class Units $559,606,392 $491,989,738

UNITS OUTSTANDINGClass I Units 4,416,621 2,072,499Manager Class Units 53,112,689 47,156,785

NET ASSETS PER UNITClass I Units $ 10.53 $ 10.43Manager Class Units $ 10.54 $ 10.43


2010 2009INVESTMENT INCOMEInterest $10,738,431 $ 6,693,700Securities lending 30,017 –

10,768,448 6,693,700

EXPENSESManagement fees (note 5) 187,876 115,703Audit fees 10,263 10,877Custodian fees 2,668 2,169Filing fees 7,834 7,402Legal fees 1,602 1,770Unitholder reporting costs 3,556 3,703Unitholder administration, service fees and GST 28,141 24,414Overdraft charges 939 145

242,879 166,183Absorbed expenses – (112)

242,879 166,071


Net realized gain (loss) on investments sold (604,867) 4,200,462Change in unrealized appreciation (depreciation) of investments 6,080,435 (3,989,982)

Net gain (loss) on investments 5,475,568 210,480

Increase (decrease) in Net Assets from operations $16,001,137 $ 6,738,109

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units** $ 1,075,709 $ 32,082Manager Class Units* $14,925,428 $ 6,706,027

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass I Units** $ 0.32 $ 0.18Manager Class Units* $ 0.29 $ 0.21


2010 2009NET ASSETS – BEGINNING OF PERIODClass I Units** $ 21,618,045 $ –Manager Class Units* 491,989,738 330,576,458

513,607,783 330,576,458

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units** 1,075,709 32,082Manager Class Units* 14,925,428 6,706,027

16,001,137 6,738,109


Class I Units** (712,402) (38,531)Manager Class Units* (10,677,665) (7,079,992)

(11,390,067) (7,118,523)


Class I Units** 23,810,897 5,113,348Manager Class Units* 160,409,527 102,791,912

Reinvested distributionsClass I Units** 712,542 38,554Manager Class Units* 9,283,116 5,964,894

Payments on redemptionClass I Units** – (73,560)Manager Class Units* (106,323,752) (65,914,054)

87,892,330 47,921,094

INCREASE (DECREASE) IN NET ASSETSClass I Units** 24,886,746 5,071,893Manager Class Units* 67,616,654 42,468,787

92,503,400 47,540,680

NET ASSETS – END OF PERIODClass I Units** 46,504,791 5,071,893Manager Class Units* 559,606,392 373,045,245

$ 606,111,183 $378,117,138


** Start date January 20, 2009.

S C O T I A F U N D S S E M I - A N N U A L R E P O R T T O U N I T H O L D E R S – 2 0 1 0I

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AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS – 96.6%Federal Bonds – 38.6%

82,585,000 Canada Housing Trust No. 14.60% due Sep. 15, 2011 85,890,878 85,909,496

111,500,000 Canada Housing Trust No. 13.95% due Dec. 15, 2011 117,262,951 115,659,154


234,749,727 233,982,666

Provincial Bonds – 58.0%19,700,000 Alberta Treasury Branches

4.40% due Dec. 3, 2012 19,873,590 20,841,42213,000,000 Alberta Treasury Branches

3.85% due Jun. 3, 2013 12,941,440 13,594,6128,000,000 Province of British Columbia

4.70% due Dec. 1, 2017 8,207,318 8,625,25080,080,000 Province of British Columbia

4.65% due Dec. 18, 2018 81,140,997 85,698,89240,400,000 Province of New Brunswick

4.50% due Feb. 4, 2015 41,940,379 43,324,334117,000,000 Province of Ontario

4.20% due Mar. 8, 2018 118,243,319 121,481,87049,570,000 Province of Quebec

4.50% due Dec. 1, 2018 50,758,416 52,006,1075,800,000 Province of Quebec

4.50% due Dec. 1, 2019 5,840,020 6,040,050

338,945,479 351,612,537

TOTAL BOND AND DEBENTURE INSTRUMENTS 573,695,206 585,595,203

MONEY MARKET INSTRUMENTS – 2.7%16,605,000 Government of Canada Treasury Bills

0.18% to 0.44% due fromJul. 8, 2010 to Aug. 19, 2010 16,598,098 16,600,342


OTHER ASSETS, LESS LIABILITIES – 0.7% 3,915,638

NET ASSETS – 100.0% 606,111,183




Federal Bonds 38.6 33.0Provincial Bonds 58.0 66.1Money Market Instruments 2.7 3.2



Interest Rate Exposure* June 30, 2010 December 31, 2009

Less than 1 year $ – $ –1-3 years 236,004,684 190,697,0763-5 years 43,324,334 36,532,4755-10 years 306,266,185 282,020,329H 10 years – –

Total $585,595,203 $509,249,880

* Excludes cash, money market instruments and preferred shares as applicable

As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$6,610,165, 1.1% of the total net assets (December 31, 2009 – $6,137,787, 1.2%of the total net assets). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

Credit risk (note 3)The table below summarizes the credit rating of the bond and debentureinstruments, excluding cash and money market instruments but includingpreferred shares, held by the Fund.

Percentage ofTotal Bond

and DebentureInstruments (%)

Percentage ofNet Assets (%)




June 30, 2010 December 31, 2009

AAA 45.8 44.3 40.1 39.8AA 36.9 35.6 37.2 36.8A 17.3 16.7 22.7 22.5

Total 100.0 96.6 100.0 99.1



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $226,612 $15,190,888



Bond and Debenture Instruments $ – $ 585,595,203 $ – $ 585,595,203Money Market Instruments – 16,600,342 – 16,600,342

$ – $602,195,545 $ – $602,195,545



$ – $525,620,408 $ – $525,620,408



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Scotia Mortgage Income Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $594,062,389 $573,563,207Cash 103,830 101,752Accrued investment income 1,595,034 1,749,590Subscriptions receivable 276,552 840,767Mortgage payments receivable 992,192 1,766,192

597,029,997 578,021,508

LIABILITIESDistributions payable 34,395 183Redemptions payable 169,334 649,114Accrued expenses 336,893 177,227

540,622 826,524

Net Assets $596,489,375 $577,194,984

NET ASSETS PER CLASSClass A Units $316,353,591 $316,397,708Class F Units $ 22,018,288 $ 17,266,404Class I Units $258,117,496 $243,530,872

UNITS OUTSTANDINGClass A Units 29,175,905 28,813,645Class F Units 2,039,954 1,577,974Class I Units 24,000,440 22,317,677

NET ASSETS PER UNITClass A Units $ 10.84 $ 10.98Class F Units $ 10.79 $ 10.94Class I Units $ 10.75 $ 10.91


2010 2009INVESTMENT INCOMEInterest $10,708,382 $11,194,970Securities lending 3,830 2,233

10,712,212 11,197,203

EXPENSESManagement fees (note 5) 2,102,643 1,184,755Audit fees 10,661 10,485Independent Review Committee fees 837 665Custodian fees 1,053 693Filing fees 18,864 11,329Legal fees 3,503 4,553Unitholder reporting costs 17,205 17,527Unitholder administration, service fees and GST 258,000 205,737Mortgage service fees 761,961 735,392Overdraft charges 8 421

3,174,735 2,171,557Absorbed expenses – (47,932)

3,174,735 2,123,625


Net realized gain (loss) on investments sold (2,838,174) (79,694)Change in unrealized appreciation (depreciation) of investments (4,794,844) 4,158,547

Net gain (loss) on investments (7,633,018) 4,078,853

Increase (decrease) in Net Assets from operations $ (95,541) $13,152,431

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (872,165) $ 4,692,462Class F Units $ (3,504) $ (529)Class I Units $ 780,128 $ 8,460,498

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.03) $ 0.27Class F Units $ – $ (0.01)Class I Units $ 0.03 $ 0.34


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $316,397,708 $161,209,737Class F Units 17,266,404 3,372Class I Units 243,530,872 265,836,309

577,194,984 427,049,418

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (872,165) 4,692,462Class F Units (3,504) (529)Class I Units 780,128 8,460,498

(95,541) 13,152,431


Class A Units (3,357,835) (3,451,239)Class F Units (295,744) (22,651)Class I Units (4,514,072) (6,952,679)

(8,167,651) (10,426,569)


Class A Units 64,173,218 89,820,074Class F Units 5,660,844 3,818,813Class I Units 19,124,446 6,326,191

Reinvested distributionsClass A Units 3,157,821 3,313,121Class F Units 283,982 22,245Class I Units 4,513,207 6,951,568

Payments on redemptionClass A Units (63,145,156) (12,628,455)Class F Units (893,694) (147,167)Class I Units (5,317,085) (606,155)

27,557,583 96,870,235

INCREASE (DECREASE) IN NET ASSETSClass A Units (44,117) 81,745,963Class F Units 4,751,884 3,670,711Class I Units 14,586,624 14,179,423

19,294,391 99,596,097

NET ASSETS – END OF PERIODClass A Units 316,353,591 242,955,700Class F Units 22,018,288 3,674,083Class I Units 258,117,496 280,015,732

$596,489,375 $526,645,515


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InterestRate (%) Number

PrincipalBalance ($)

AmortizedCost ($)

MarketValue ($)

CONVENTIONAL MORTGAGES – 85.8%0.25 – 0.49 1 300,595 280,672 277,7931.00 – 1.24 2 169,204 164,981 165,5021.25 – 1.49 4 813,061 789,457 785,9831.50 – 1.74 3 446,233 431,809 429,5951.75 – 1.99 4 829,539 825,722 818,5692.00 – 2.24 7 762,977 754,890 766,8042.25 – 2.49 153 17,781,393 17,750,881 17,737,5912.50 – 2.74 512 33,564,913 33,521,329 33,506,9132.75 – 2.99 58 7,113,554 7,085,387 7,059,2773.00 – 3.24 105 18,661,610 18,596,207 18,524,3423.25 – 3.49 144 22,189,707 22,162,234 22,044,3153.50 – 3.74 361 41,527,965 41,586,704 41,418,5603.75 – 3.99 513 44,521,758 44,732,453 44,580,2844.00 – 4.24 312 24,995,458 25,102,271 25,155,0554.25 – 4.49 551 59,755,066 59,950,477 59,951,3854.50 – 4.74 357 37,252,067 37,373,011 37,372,0844.75 – 4.99 420 49,719,681 49,953,506 50,058,4565.00 – 5.24 385 39,792,517 40,129,727 40,568,6525.25 – 5.49 440 43,145,484 43,451,888 44,708,2095.50 – 5.74 329 32,173,345 32,333,590 33,428,5195.75 – 5.99 202 17,706,521 17,850,726 18,454,2026.00 – 6.24 63 4,002,703 4,036,193 4,166,0146.25 – 6.49 36 2,471,799 2,497,149 2,580,8046.50 – 6.74 59 4,959,891 5,002,858 5,071,8176.75 – 6.99 22 1,624,713 1,646,380 1,693,8977.00 – 7.24 5 218,652 221,404 225,0977.25 – 7.49 3 159,010 161,609 161,721

TOTAL 5,051 506,659,416 508,393,515 511,711,440


AverageCost ($)

FairValue ($)





NET ASSETS – 100.0% 596,489,375

M o r t g a g e s b y G e o g r a p h i c L o c a t i o nAs at June 30, 2010

ProvinceNumber ofMortgages


MarketValue ($)

Ontario 2,328 234,310,313 236,714,354British Columbia 680 94,994,023 95,523,473Alberta 636 82,700,072 83,542,217Quebec 459 35,406,508 35,861,029Nova Scotia 268 17,463,480 17,715,829Newfoundland and Labrador 173 9,218,871 9,330,827New Brunswick 176 9,177,490 9,318,639Saskatchewan 147 11,154,037 11,286,094Manitoba 130 8,067,030 8,161,429Prince Edward Island 36 1,794,164 1,833,560Northwest Territories 12 1,512,554 1,538,427Yukon Territories 6 860,874 885,562

TOTAL 5,051 506,659,416 511,711,440

M o r t g a g e s b y Ty p e o f P r o p e r t yAs at June 30, 2010

Number ofMortgages


MarketValue ($)

Single Family Dwelling 4,944 497,157,670 501,779,686Condominiums 72 5,977,499 6,245,610Multi-Unit Dwelling of up to 8 Units 35 3,524,247 3,686,144

TOTAL 5,051 506,659,416 511,711,440




Conventional Mortgages 85.8 90.7Money Market Instruments 13.8 8.7


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Scotia Mortgage Income Fund (Unaudited – Continued)





June 30, 2010 December 31, 2009

Mortgages of 7 year remaining maturity 0.8 –Mortgages of 6 year remaining maturity 0.5 –Mortgages of 5 year remaining maturity 1.0 12.2Mortgages of 4 year remaining maturity 15.8 12.3Mortgages of 3 year remaining maturity 21.5 15.8Mortgages of 2 year remaining maturity 14.9 25.2Mortgages of 1 year remaining maturity 13.7 11.5Mortgages of 6 months or less remaining maturity 17.6 13.7

Total 85.8 90.7


Credit risk (note 3)As the Fund invests primarily in mortgages this represents the mainconcentration of credit risk. The market value of debt instruments includesconsideration of the creditworthiness of the issuer, and accordingly, representsthe maximum credit risk exposure to the Fund. BNS will buy any mortgage thatis in default if it was purchased from Scotia Mortgage Corporation or from BNS.

The Government of Canada Treasury Bills representing 13.8% of the Fund’s NetAssets as at June 30, 2010 (December 31, 2009 – 8.7% of the Fund’s NetAssets) are rated at “R1-High”.



June 30, 2010 December 31, 2009




Conventional Mortgages $ – $ 511,711,440 $ – $ 511,711,440Money Market Instruments – 82,350,949 – 82,350,949

$ – $594,062,389 $ – $594,062,389


Conventional Mortgages $ – $ 523,484,811 $ – $ 523,484,811Money Market Instruments – 50,078,396 – 50,078,396

$ – $573,563,207 $ – $573,563,207



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Scotia Mortgage Income Fund (Unaudited – Continued)

Scotia Bond Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $462,787,670 $421,348,267Cash 100,422 100,823Accrued investment income 4,894,827 4,138,739Subscriptions receivable 147,187 780,239

467,930,106 426,368,068

LIABILITIESPayable for securities purchased – 4,491,541Distributions payable 3,413 19Redemptions payable 374 22,500Accrued expenses 58,585 24,476

62,372 4,538,536

Net Assets $467,867,734 $421,829,532

NET ASSETS PER CLASSClass A Units $ 53,354,203 $ 35,412,166Class I Units $414,513,531 $386,417,366

UNITS OUTSTANDINGClass A Units 5,202,469 3,534,686Class I Units 40,469,915 38,565,745

NET ASSETS PER UNITClass A Units $ 10.26 $ 10.02Class I Units $ 10.24 $ 10.02

S T AT E M E N T O F O P E R AT I O N SFor the six month period ended June 30,*

2010INVESTMENT INCOMEInterest $ 9,340,852

EXPENSESManagement fees (note 5) 256,989Audit fees 12,579Independent Review Committee fees 79Custodian fees 3,293Filing fees 7,627Legal fees 1,781Unitholder reporting costs 4,828Unitholder administration, service fees and GST 38,873

326,049Absorbed expenses –

326,049

Net investment income (loss) 9,014,803

Net realized gain (loss) on investments sold (557,039)Net realized gain (loss) on futures contracts 117,034Transaction costs (2,058)Change in unrealized appreciation (depreciation) of investments 11,186,318

Net gain (loss) on investments 10,744,255

Increase (decrease) in Net Assets from operations $19,759,058

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 1,805,485Class I Units $17,953,573

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.39Class I Units $ 0.45

S TA T E M E N T O F C H A N G E S I N N E T A S S E T SFor the six month period ended June 30,*

2010NET ASSETS – BEGINNING OF PERIODClass A Units $ 35,412,166Class I Units 386,417,366

421,829,532

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 1,805,485Class I Units 17,953,573

19,759,058


Class A Units (773,420)Class I Units (9,056,224)

(9,829,644)


Class A Units 23,868,824Class I Units 41,591,971

Reinvested distributionsClass A Units 743,235Class I Units 9,057,053

Payments on redemptionClass A Units (7,702,087)Class I Units (31,450,208)

36,108,788

INCREASE (DECREASE) IN NET ASSETSClass A Units 17,942,037Class I Units 28,096,165

46,038,202

NET ASSETS – END OF PERIODClass A Units 53,354,203Class I Units 414,513,531

$467,867,734

* Fund start date September 8, 2009.


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AverageCost ($)

FairValue ($)




29,635,000 Government of Canada1.00% due Sep. 1, 2011 29,520,905 29,611,998

200,869,075 202,035,102

Provincial Bonds – 28.3%7,730,000 Hydro-Quebec

11.00% due Aug. 15, 2020 12,072,480 12,136,5571,100,000 Province of British Columbia

4.70% due Dec. 1, 2017 1,168,871 1,185,972870,000 Province of Ontario

4.20% due Mar. 8, 2018 888,270 903,32785,325,000 Province of Ontario


4.50% due Dec. 1, 2018 11,398,750 11,540,593

128,950,829 132,375,942

Municipal Bonds – 1.7%7,400,000 Municipal Finance Authority of British Columbia

4.60% due Apr. 23, 2018 7,608,413 7,820,897

Mortgage-Backed Securities – 5.3%4,920,000 Merrill Lynch Financial Assets Inc.

4.83% due Feb. 12, 2039 4,327,530 4,872,6214,710,000 Merrill Lynch Financial Assets Inc.

4.98% due Jun. 12, 2039 4,155,806 4,709,7955,070,000 Merrill Lynch Financial Assets Inc.

4.81% due Oct. 12, 2039 4,336,844 5,060,8985,150,000 Real Estate Asset Liquidity Trust

4.78% due Apr. 12, 2023 4,403,746 5,199,7835,000,000 Schooner Trust

5.19% due Jun. 12, 2022 4,315,966 5,167,638

21,539,892 25,010,735

Corporate Bonds – 20.0%3,970,000 Brookfield Renewable Power Inc.

8.75% due Feb. 3, 2012 4,338,081 4,305,4221,990,000 Canadian Imperial Bank of Commerce

5.00% due Sep. 10, 2012 2,128,586 2,107,2704,100,000 Canadian Natural Resources Limited

4.50% due Jan. 23, 2013 4,294,188 4,297,1194,210,000 Caterpillar Financial Services Limited

4.94% due Jun. 1, 2012 4,407,061 4,431,3981,700,000 CIBC Capital Trust (callable)

9.98% due Jun. 30, 2108-(2019) 2,272,781 2,274,2654,400,000 CU Inc.

4.80% due Nov. 22, 2021 4,383,658 4,543,0184,150,000 EnCana Corporation

4.30% due Mar. 12, 2012 4,356,245 4,300,8934,500,000 EnCana Corporation

5.80% due Jan. 18, 2018 4,892,850 4,953,1324,930,000 GE Capital Canada Funding Company

5.73% due Oct. 22, 2037 4,396,476 4,973,0104,150,000 Golden Credit Card Trust

4.25% due Feb. 15, 2011 4,296,089 4,225,1065,000,000 Golden Credit Card Trust

3.82% due May 15, 2015 5,000,000 5,130,9754,190,000 Great-West Lifeco Inc.

6.67% due Mar. 21, 2033 4,451,848 4,805,1513,770,000 Greater Toronto Airports Authority

7.10% due Jun. 4, 2031 4,404,371 4,569,8474,220,000 Honda Canada Finance Inc.

5.68% due Sep. 26, 2012 4,490,002 4,511,037


AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)

4,210,000 Manulife Financial Corporation4.90% due Jun. 2, 2014 4,398,902 4,436,790

4,110,000 NAV Canada5.30% due Apr. 17, 2019 4,402,455 4,457,865

3,000,000 Royal Bank of Canada (callable)5.00% due Jun. 6, 2018-(2013) 3,214,680 3,169,260

4,290,000 Sun Life Financial Inc. (callable)4.95% due Jun. 1, 2036-(2016) 4,376,501 4,446,775

4,160,000 Suncor Energy, Inc.5.80% due May 22, 2018 4,383,467 4,525,746

4,450,000 Toronto-Dominion Bank, The (callable)4.78% due Dec. 14, 2105-(2016) 4,345,212 4,579,050


4,260,000 Wells Fargo Financial Corporation Canada4.38% due Jun. 30, 2015 4,324,597 4,409,086

91,850,097 93,760,069



0.20% to 0.23% due Jul. 8, 2010 1,784,873 1,784,925



NET ASSETS – 100.0% 467,867,734




Federal Bonds 43.2 41.6Provincial Bonds 28.3 29.1Municipal Bonds 1.7 1.8Mortgage-Backed Securities 5.3 6.5Corporate Bonds 20.0 19.7Money Market Instruments 0.4 1.2


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Scotia Bond Fund (Unaudited – Continued)




Less than 1 year $ 4,225,106 $ –1-3 years 179,142,451 159,967,2663-5 years 9,567,765 8,751,7225-10 years 130,430,349 127,484,069H 10 years 137,637,074 119,900,319

Total $461,002,745 $416,103,376










June 30, 2010 December 31, 2009

AAA 53.0 52.2 51.5 50.8AA 32.6 32.1 27.8 27.4A 12.5 12.4 18.6 18.4BBB 1.9 1.8 2.1 2.1

Total 100.0 98.5 100.0 98.7



June 30, 2010 December 31, 2009





$ – $462,787,670 $ – $462,787,670



$ – $421,348,267 $ – $421,348,267



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Scotia Bond Fund (Unaudited – Continued)

Scotia Canadian Income Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $2,395,586,900 $1,946,226,253Cash 102,110 103,973Accrued investment income 25,777,041 21,045,561Subscriptions receivable 1,492,105 1,057,758

2,422,958,156 1,968,433,545

LIABILITIESPayable for securities purchased 12,996,555 20,986,893Distributions payable 214,660 301Redemptions payable 663,441 450,812Accrued expenses 1,077,373 504,318Payable for futures contracts 189,600 20,080

15,141,629 21,962,404

Net Assets $2,407,816,527 $1,946,471,141

NET ASSETS PER CLASSClass A Units $ 909,640,412 $ 799,982,938Advisor Class Units $ 10,055,191 $ 5,357,717Class F Units $ 281,566 $ 288,836Class I Units $1,137,602,969 $ 798,530,850Manager Class Units $ 350,236,389 $ 342,310,800

UNITS OUTSTANDINGClass A Units 69,199,417 62,349,769Advisor Class Units 766,553 418,511Class F Units 21,472 22,574Class I Units 87,089,389 62,520,270Manager Class Units 26,791,048 26,792,797

NET ASSETS PER UNITClass A Units $ 13.15 $ 12.83Advisor Class Units $ 13.12 $ 12.80Class F Units $ 13.11 $ 12.80Class I Units $ 13.06 $ 12.77Manager Class Units $ 13.07 $ 12.78


2010 2009INVESTMENT INCOMEInterest $48,439,823 $46,492,805Securities lending 28,554 2,383

48,468,377 46,495,188

EXPENSESManagement fees (note 5) 5,518,338 4,225,415Audit fees 13,379 13,968Independent Review Committee fees 2,796 2,765Custodian fees 10,825 10,536Filing fees 40,157 31,813Legal fees 7,957 8,614Unitholder reporting costs 49,652 61,243Unitholder administration, service fees and GST 637,137 607,561Overdraft charges 32 36

6,280,273 4,961,951Absorbed expenses (986) (11,060)

6,279,287 4,950,891


Net realized gain (loss) on investments sold 2,559,231 (3,151,686)Net realized gain (loss) on futures contracts (6,238,941) 4,988,420Transaction costs (22,308) (22,611)Change in unrealized appreciation (depreciation) of investments 57,502,144 38,902,930Change in unrealized appreciation (depreciation) of futures contracts – (16,040)

Net gain (loss) on investments 53,800,126 40,701,013

Increase (decrease) in Net Assets from operations $95,989,216 $82,245,310

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $34,763,769 $29,253,378Advisor Class Units $ 308,316 $ 55,917Class F Units $ 13,029 $ 10,703Class I Units $44,956,594 $39,458,996Manager Class Units* $15,947,508 $13,466,316

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.52 $ 0.54Advisor Class Units $ 0.54 $ 0.55Class F Units $ 0.55 $ 0.51Class I Units $ 0.60 $ 0.59Manager Class Units* $ 0.59 $ 0.56


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 799,982,938 $ 654,622,864Advisor Class Units 5,357,717 1,195,179Class F Units 288,836 280,167Class I Units 798,530,850 771,820,487Manager Class Units* 342,310,800 316,335,128

1,946,471,141 1,744,253,825

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 34,763,769 29,253,378Advisor Class Units 308,316 55,917Class F Units 13,029 10,703Class I Units 44,956,594 39,458,996Manager Class Units* 15,947,508 13,466,316

95,989,216 82,245,310


Class A Units (14,210,319) (13,725,124)Advisor Class Units (122,963) (27,482)Class F Units (5,877) (6,242)Class I Units (23,246,547) (23,114,575)Manager Class Units* (8,166,951) (8,299,012)

(45,752,657) (45,172,435)


Class A Units 155,372,598 51,438,622Advisor Class Units 4,744,899 992,050Class F Units 71,392 57,040Class I Units 354,952,520 118,447,049Manager Class Units* 56,855,345 39,904,176

Reinvested distributionsClass A Units 13,762,060 13,373,133Advisor Class Units 88,313 18,820Class F Units 4,125 5,530Class I Units 23,242,809 23,114,575Manager Class Units* 7,162,813 7,315,562

Payments on redemptionClass A Units (80,030,634) (40,774,655)Advisor Class Units (321,091) (221,665)Class F Units (89,939) (104,914)Class I Units (60,833,257) (24,057,889)Manager Class Units* (63,873,126) (72,799,840)

411,108,827 116,707,594

INCREASE (DECREASE) IN NET ASSETSClass A Units 109,657,474 39,565,354Advisor Class Units 4,697,474 817,640Class F Units (7,270) (37,883)Class I Units 339,072,119 133,848,156Manager Class Units* 7,925,589 (20,412,798)

461,345,386 153,780,469

NET ASSETS – END OF PERIODClass A Units 909,640,412 694,188,218Advisor Class Units 10,055,191 2,012,819Class F Units 281,566 242,284Class I Units 1,137,602,969 905,668,643Manager Class Units* 350,236,389 295,922,330

$2,407,816,527 $1,898,034,294



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S T AT E M E N T O F I N V E S T M E N T P O R T F O L I OAs at June 30, 2010FaceValue ($) Issuer

AverageCost ($)

FairValue ($)





603,307,629 605,577,788




5.70% due Jun. 18, 2029 32,164,449 34,091,660106,810,000 Province of Ontario

4.20% due Mar. 8, 2018 108,825,303 110,901,52556,945,000 Province of Ontario



4.50% due Dec. 1, 2018 59,066,250 59,801,253

811,757,669 832,201,578


4.60% due Apr. 23, 2018 42,629,821 45,202,668






4.36% due Sep. 12, 2020 7,997,720 8,114,74328,340,000 Schooner Trust

5.19% due Jun. 12, 2022 28,005,111 29,290,174

156,589,208 158,878,491

Corporate Bonds – 29.5%30,090,000 Bank of America Corporation

5.45% due Sep. 17, 2014 30,075,182 31,179,80916,310,000 Bank of Montreal

6.02% due May 2, 2018 17,957,799 18,483,91515,000,000 Bayerische Motoren Werke AG

3.22% due Mar. 28, 2013 14,998,350 15,146,62926,095,000 Brookfield Renewable Power Inc.


5.00% due Sep. 10, 2012 24,200,775 23,825,91923,545,000 Canadian Natural Resources Limited



9.98% due Jun. 30, 2108-(2019) 29,103,918 29,471,80136,790,000 Citigroup Inc.* (callable)

4.65% due Oct. 11, 2022-(2017) 36,381,590 32,919,21022,000,000 CU Inc.

4.80% due Nov. 22, 2021 22,103,080 22,715,0928,925,000 EnCana Corporation

4.30% due Mar. 12, 2012 8,902,973 9,249,512


AverageCost ($)

FairValue ($)


19,630,000 EnCana Corporation5.80% due Jan. 18, 2018 19,578,569 21,606,663

42,215,000 GE Capital Canada Funding Company5.73% due Oct. 22, 2037 42,071,054 42,583,287

16,000,000 Golden Credit Card Trust3.82% due May 15, 2015 16,000,000 16,419,121

26,490,000 Great-West Lifeco Inc.6.67% due Mar. 21, 2033 27,524,002 30,379,102

21,135,000 Greater Toronto Airports Authority7.10% due Jun. 4, 2031 21,288,580 25,619,020

25,855,000 Honda Canada Finance Inc.5.68% due Sep. 26, 2012 25,860,633 27,638,122

15,000,000 Husky Energy Inc.5.00% due Mar. 12, 2020 14,945,100 15,363,551


19,385,000 Morgan Stanley4.90% due Feb. 23, 2017 19,299,925 18,776,403



9,000,000 Royal Bank of Canada3.18% due Mar. 16, 2015 8,996,670 9,031,653



20,000,000 TELUS Corporation5.05% due Dec. 4, 2019 19,966,180 20,238,822




684,069,285 711,674,154

TOTAL BOND AND DEBENTURE INSTRUMENTS 2,298,353,612 2,353,534,679


0.18% to 0.64% due fromJul. 8, 2010 to Oct. 14, 2010 42,048,224 42,052,221


Futures Contracts – 0.0% (189,600)OTHER ASSETS, LESS LIABILITIES – 0.5% 12,419,227

NET ASSETS – 100.0% 2,407,816,527

* This security is not actively traded and considered illiquid.


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Scotia Canadian Income Fund (Unaudited – Continued)


B O N D F U T U R E S C O N T R A C T S

Number of Contracts Contract IssuerContractual Value

Canadian ($)Fair Value

Canadian ($)Appreciation/

(Depreciation) ($)

(948) Canada 10 Year Bond Future – Sep. 2010 (114,832,491) (117,390,840) (2,558,349)

(2,558,349)

The above futures contracts are financial agreements to purchase/sell the bonds at a contracted price on a specific future date. However, the Fund does not intend to purchase the bonds onsettlement. Rather, it intends to close out each futures contract before settlement by entering into equal, but offsetting futures contracts.

With respect to the above futures contracts, $3,300,000 of the October 14, 2010 Government of Canada Treasury Bill is held on margin.

The futures contracts outstanding at June 30, 2010 are placed with a financial institution with a minimum credit rating of A+ by Standard & Poor’s.




Federal Bonds 25.1 20.2Provincial Bonds 34.6 35.8Municipal Bonds 1.9 2.3Mortgage-Backed Securities 6.6 8.1Corporate Bonds 29.5 32.5Money Market Instruments 1.8 1.1Futures Contracts 0.0 0.0




Less than 1 year $ – $ –1-3 years 743,798,676 484,437,9333-5 years 88,125,467 87,693,6555-10 years 812,475,382 801,513,397H 10 years 709,135,154 552,081,801

Total $2,353,534,679 $1,925,726,786


As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$35,755,599, 1.5% of the total net assets (December 31, 2009 – $29,778,768,1.5% of the total net assets). In practice, actual results may differ from thissensitivity analysis and the difference could be material.








June 30, 2010 December 31, 2009

AAA 35.5 34.6 30.9 30.5AA 42.3 41.4 36.8 36.4A 19.9 19.5 29.6 29.3BBB 2.3 2.2 2.7 2.7

Total 100.0 97.7 100.0 98.9



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $14,952,029 $21,942,324Futures contracts 189,600 20,080

$15,141,629 $21,962,404



Bond and Debenture Instruments $ – $ 2,353,534,679 $ – $ 2,353,534,679Money Market Instruments – 42,052,221 – 42,052,221

– 2,395,586,900 – 2,395,586,900

Futures Contracts (Short) (2,558,349) – – (2,558,349)

$(2,558,349) $2,395,586,900 $ – $2,393,028,551



– 1,946,226,253 – 1,946,226,253

Futures Contracts (Short) 2,048,160 – – 2,048,160

$2,048,160 $1,946,226,253 $ – $1,948,274,413

Futures Contracts reflect the total appreciation (depreciation) of the contractsand not the current amount payable (receivable) as disclosed in the Statementof Net Assets.



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24

Scotia Canadian Income Fund (Unaudited – Continued)

Scotia Canadian Corporate Bond Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $1,968,867,369 $1,905,072,574Cash 92,158 98,988Accrued investment income 15,666,328 16,955,061

1,984,625,855 1,922,126,623

LIABILITIESPayable for securities purchased 14,595,648 4,272,004Distributions payable 1,005,564 –Accrued expenses 103,877 58,046

15,705,089 4,330,050

Net Assets $1,968,920,766 $1,917,796,573

NET ASSETS PER CLASSClass I Units $ 376,721,702 $ 312,026,367Manager Class Units $1,592,199,064 $1,605,770,206




2010 2009INVESTMENT INCOMEInterest $48,243,432 $ 39,710,430Securities lending 566 773

48,243,998 39,711,203

EXPENSESManagement fees (note 5) 547,230 462,007Audit fees 13,379 13,923Custodian fees 9,577 8,578Filing fees 8,660 8,463Legal fees 1,602 1,770Unitholder reporting costs 3,556 3,702Unitholder administration, service fees and GST 46,406 42,114


630,410 540,336


Net realized gain (loss) on investments sold 8,692,963 (14,945,221)Change in unrealized appreciation (depreciation) of investments 30,895,120 91,775,400

Net gain (loss) on investments 39,588,083 76,830,179


INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units $15,581,324 $ 11,769,944Manager Class Units* $71,620,347 $104,231,102

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass I Units $ 0.45 $ 0.72Manager Class Units* $ 0.47 $ 0.74


2010 2009NET ASSETS – BEGINNING OF PERIODClass I Units $ 312,026,367 $ 152,254,614Manager Class Units* 1,605,770,206 1,257,565,199

1,917,796,573 1,409,819,813

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units 15,581,324 11,769,944Manager Class Units* 71,620,347 104,231,102

87,201,671 116,001,046


Class I Units (9,755,322) (4,417,817)Manager Class Units* (42,010,218) (38,115,004)

(51,765,540) (42,532,821)


Class I Units 81,332,419 3,215,123Manager Class Units* 211,609,932 281,260,880

Reinvested distributionsClass I Units 9,754,622 4,418,255Manager Class Units* 35,392,014 32,390,384

Payments on redemptionClass I Units (32,217,708) (9,200,709)Manager Class Units* (290,183,217) (189,368,676)

15,688,062 122,715,257

INCREASE (DECREASE) IN NET ASSETSClass I Units 64,695,335 5,784,796Manager Class Units* (13,571,142) 190,398,686

51,124,193 196,183,482

NET ASSETS – END OF PERIODClass I Units 376,721,702 158,039,410Manager Class Units* 1,592,199,064 1,447,963,885

$1,968,920,766 $1,606,003,295



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25

Scotia Canadian Corporate Bond Fund (Unaudited – Continued)



AverageCost ($)

FairValue ($)



Provincial Bonds – 2.1%39,000,000 Province of Ontario

4.40% due Jun. 2, 2019 40,110,410 40,615,951







5.19% due Jun. 12, 2022 24,804,304 26,251,602

115,451,039 118,750,797


5.45% due Sep. 17, 2014 25,330,507 26,216,32430,100,000 Bank of Ireland (callable)

3.80% due Sep. 22, 2015-(2010) 29,182,053 23,143,95113,000,000 Bank of Montreal Capital Trust II (callable)

10.22% due Dec. 31, 2107-(2018) 17,537,120 17,806,90154,350,000 Bank of Nova Scotia, The (callable)

4.94% due Apr. 15, 2019-(2014) 55,715,453 57,279,80535,000,000 Bayerische Motoren Werke AG

3.22% due Mar. 28, 2013 34,976,900 35,342,13340,500,000 Bell Canada

5.00% due Feb. 15, 2017 40,172,100 42,181,81537,350,000 Brookfield Renewable Power Inc.


3.05% due Jun. 3, 2013 25,033,750 25,340,08211,000,000 Canadian Natural Resources Limited

5.50% due Dec. 17, 2010 11,039,890 11,200,60421,650,000 Canadian Natural Resources Limited

4.95% due Jun. 1, 2015 20,860,477 23,039,02425,400,000 Canadian Pacific Railway Company

6.25% due Jun. 1, 2018 25,264,423 28,277,01717,000,000 Caterpillar Financial Services Limited

4.94% due Jun. 1, 2012 16,940,947 17,894,00523,500,000 Caterpillar Financial Services Limited



4.65% due Oct. 11, 2022-(2017) 28,728,908 27,291,00017,000,000 EnCana Corporation

4.30% due Mar. 12, 2012 16,966,749 17,618,11723,000,000 EnCana Corporation

5.80% due Jan. 18, 2018 24,167,397 25,316,00813,900,000 EPCOR Utilities Inc.

6.60% due Nov. 1, 2011 14,737,753 14,742,35633,300,000 Finning International Inc.

6.02% due Jun. 1, 2018 33,339,337 36,799,45850,000,000 GE Capital Canada Funding Company

5.53% due Aug. 17, 2017 49,192,102 53,119,30820,000,000 Genesis Trust

4.25% due Sep. 15, 2011 20,563,000 20,593,33033,150,000 Golden Credit Card Trust

4.25% due Feb. 15, 2011 32,538,589 33,749,939


AverageCost ($)

FairValue ($)



40,000,000 Greater Toronto Airports Authority5.96% due Nov. 20, 2019 44,114,400 44,693,588



18,250,000 ING Bank of Canada (callable)4.30% due Dec. 5, 2016-(2011) 18,235,241 18,616,693

35,400,000 John Deere Credit Inc.5.45% due Sep. 16, 2015 35,423,993 38,886,725

40,000,000 JPMorgan Chase & Co. (callable)3.88% due Sep. 8, 2015-(2010) 40,177,500 40,126,152


40,000,000 Master Credit Card Trust4.44% due Nov. 21, 2011 39,728,290 41,418,350


40,200,000 National Australia Bank Limited (callable)4.55% due Sep. 21, 2016-(2011) 40,099,326 41,075,010

35,000,000 National Bank of Canada (callable)4.46% due Nov. 2, 2016-(2011) 35,606,834 36,077,655


20,500,000 RBC Capital Trust (callable)6.82% due Jun. 30, 2049-(2018) 23,223,829 23,222,188

34,000,000 Rogers Communications Inc.5.80% due May 26, 2016 36,518,930 36,952,154


43,400,000 Royal Bank of Canada5.95% due Jun. 18, 2014 41,658,514 47,069,467

20,100,000 Royal Bank of Scotland PLC, The (callable)1.60% due Mar. 30, 2015 (Sept. 30, 2010) 19,873,950 16,956,561

29,450,000 Scotiabank Tier I Trust (callable)7.80% due Jun. 30, 2108-(2019) 31,795,869 35,478,398

40,500,000 Shaw Communications Inc.5.65% due Oct. 1, 2019 40,384,756 41,933,386



40,400,000 TD Capital Trust III (callable)7.24% due Dec. 31, 2049-(2018) 40,737,055 46,892,583

20,500,000 TELUS Corporation4.95% due May 15, 2014 20,499,180 21,650,916


34,000,000 Thomson Reuters Corporation6.00% due Mar. 31, 2016 35,638,200 38,035,654

18,750,000 Toronto Hydro Corporation6.11% due Dec. 30, 2011 20,037,375 19,938,353

24,000,000 Toronto Hydro Corporation4.49% due Nov. 12, 2019 23,994,240 24,479,127



40,000,000 Wells Fargo Financial Corporation Canada3.97% due Nov. 3, 2014 39,998,400 40,879,085

1,663,401,755 1,741,063,543

TOTAL BOND AND DEBENTURE INSTRUMENTS 1,871,041,080 1,952,443,063


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AverageCost ($)

FairValue ($)


0.18% to 0.26% due Jul. 8, 2010 16,423,856 16,424,306



NET ASSETS – 100.0% 1,968,920,766





Federal Bonds 2.6 5.2Provincial Bonds 2.1 –Mortgage-Backed Securities 6.0 7.0Corporate Bonds 88.5 86.9Money Market Instruments 0.8 0.3




Less than 1 year $ 125,177,207 $ 60,737,9721-3 years 522,481,080 504,936,7123-5 years 286,154,737 326,431,2035-10 years 1,018,630,039 1,007,741,840H 10 years – –

Total $1,952,443,063 $1,899,847,727


As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$21,560,102, 1.1% of the total net assets (December 31, 2009 – $21,528,438,1.1% of the total net assets). In practice, actual results may differ from thissensitivity analysis and the difference could be material.








June 30, 2010 December 31, 2009

AAA 15.1 15.0 17.8 17.6AA 27.0 26.8 30.7 30.4A 47.7 47.3 41.1 40.8BBB 10.2 10.1 10.4 10.3

Total 100.0 99.2 100.0 99.1



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $15,705,089 $4,330,050




$ – $1,968,867,369 $ – $1,968,867,369



$ – $1,905,072,574 $ – $1,905,072,574



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27

Scotia Canadian Corporate Bond Fund (Unaudited – Continued)

Scotia U.S. $ Bond Fund (Unaudited)


June 30,2010

December 31,2009

U.S.$ U.S.$ASSETSInvestments at fair value $54,733,129 $31,388,990Cash 95,358 102,414Accrued investment income 549,584 338,083Subscriptions receivable 272,390 260,005

55,650,461 32,089,492

LIABILITIESPayable for securities purchased 2,714,178 –Distributions payable 9,820 25Redemptions payable 14,363 19,549Accrued expenses 73,645 28,806

2,812,006 48,380

Net Assets $52,838,455 $32,041,112

NET ASSETS PER CLASSClass A Units $52,794,917 $32,035,793Class F Units $ 43,538 $ 5,319

UNITS OUTSTANDINGClass A Units 4,763,345 2,969,881Class F Units 3,944 494

NET ASSETS PER UNITClass A Units $ 11.08 $ 10.79Class F Units $ 11.04 $ 10.77


2010 2009

U.S.$ U.S.$INVESTMENT INCOMEInterest $ 839,923 $ 411,713

EXPENSESManagement fees (note 5) 314,076 120,620Audit fees 6,617 6,626Independent Review Committee fees 85 75Custodian fees 383 219Filing fees 7,885 13,327Legal fees 1,796 1,905Unitholder reporting costs 4,946 5,249Unitholder administration, service fees and GST 44,321 34,872Overdraft charges – 21


378,609 145,330


Net realized gain (loss) on investments sold – 56,156Change in unrealized appreciation (depreciation) of investments 1,191,519 (410,768)

Net gain (loss) on investments 1,191,519 (354,612)

Increase (decrease) in Net Assets from operations $1,652,833 $ (88,229)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $1,652,524 $ (88,190)Class F Units $ 309 $ (39)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.43 $ (0.06)Class F Units $ 0.55 $ (0.05)


2010 2009

U.S.$ U.S.$NET ASSETS – BEGINNING OF PERIODClass A Units $32,035,793 $16,424,832Class F Units 5,319 14,282

32,041,112 16,439,114

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 1,652,524 (88,190)Class F Units 309 (39)

1,652,833 (88,229)


Class A Units (485,271) (288,965)Class F Units (191) (185)

(485,462) (289,150)


Class A Units 23,086,175 2,099,928Class F Units 37,910 –

Reinvested distributionsClass A Units 438,269 278,806Class F Units 191 185

Payments on redemptionClass A Units (3,932,573) (1,074,172)Class F Units – (9,072)

19,629,972 1,295,675

INCREASE (DECREASE) IN NET ASSETSClass A Units 20,759,124 927,407Class F Units 38,219 (9,111)

20,797,343 918,296

NET ASSETS – END OF PERIODClass A Units 52,794,917 17,352,239Class F Units 43,538 5,171

$52,838,455 $17,357,410


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AverageCost ($)

FairValue ($)

U.S.$ U.S.$ U.S.$BOND AND DEBENTURE INSTRUMENTS – 95.2%Federal Bonds – 13.6%

3,000,000 Export Development Canada2.38% due Mar. 19, 2012 3,074,040 3,072,162

2,000,000 Export Development Canada1.75% due Sep. 24, 2012 2,003,888 2,035,280

1,500,000 Export Development Canada3.13% due Apr. 24, 2014 1,535,710 1,576,665

500,000 Inter-American Development Bank3.50% due Mar. 15, 2013 509,380 520,513

7,123,018 7,204,620

Provincial Bonds – 48.0%3,500,000 Province of British Columbia

4.30% due May 30, 2013 3,659,961 3,796,7423,000,000 Province of Manitoba

5.00% due Feb. 15, 2012 3,209,620 3,191,1431,000,000 Province of Manitoba

4.90% due Dec. 6, 2016 1,005,637 1,126,6232,000,000 Province of New Brunswick

7.63% due Feb. 15, 2013 2,418,800 2,264,1521,600,000 Province of Nova Scotia

5.75% due Feb. 27, 2012 1,743,930 1,725,4101,300,000 Province of Nova Scotia

5.13% due Jan. 26, 2017 1,379,619 1,481,1931,000,000 Province of Ontario

3.50% due Jul. 15, 2013 1,040,930 1,055,5641,750,000 Province of Ontario

4.75% due Jan. 19, 2016 1,749,950 1,940,7582,000,000 Province of Ontario

4.00% due Oct. 7, 2019 1,978,806 2,061,2343,000,000 Province of Quebec

4.60% due May 26, 2015 3,159,173 3,320,9831,500,000 Province of Quebec

4.63% due May 14, 2018 1,592,958 1,641,0691,500,000 Province of Saskatchewan

7.38% due Jul. 15, 2013 1,727,802 1,756,022

24,667,186 25,360,893

Corporate Bonds – 24.1%700,000 Canadian Imperial Bank of Commerce

2.00% due Feb. 4, 2013 702,338 709,443500,000 Canadian Natural Resources Limited

5.90% due Feb. 1, 2018 538,605 560,965700,000 Canadian Pacific Railway Company

6.50% due May 15, 2018 732,067 803,173700,000 Caterpillar Financial Services Limited

5.13% due Oct. 12, 2011 748,279 736,106600,000 CDP Financial Inc.

4.40% due Nov. 25, 2019 589,794 619,216650,000 Citigroup Inc.

6.50% due Jan. 18, 2011 658,450 667,518500,000 Deere & Company

6.95% due Apr. 25, 2014 558,270 593,020500,000 EnCana Corporation

5.90% due Dec. 1, 2017 500,260 521,099700,000 European Investment Bank

2.88% due Mar. 15, 2013 699,307 725,663500,000 General Electric Capital Corporation

5.63% due Sep. 15, 2017 523,350 529,360650,000 Husky Energy Inc.

5.90% due Jun. 15, 2014 708,351 724,295700,000 International Business Machines Corporation

7.63% due Oct. 15, 2018 866,950 901,845700,000 JPMorgan Chase & Co.

4.65% due Jun. 1, 2014 739,760 747,509500,000 PC Financial Partnership

5.00% due Nov. 15, 2014 493,313 538,540


AverageCost ($)

FairValue ($)

U.S.$ U.S.$ U.S.$BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds (cont’d)

700,000 Pfizer Inc.4.45% due Mar. 15, 2012 748,125 740,740

720,000 Rogers Communications Inc.6.80% due Aug. 15, 2018 814,284 848,952

700,000 TELUS Corporation8.00% due Jun. 1, 2011 752,740 744,254

436,000 Thomson Reuters Corporation5.70% due Oct. 1, 2014 483,677 479,174

500,000 Wal-Mart Stores, Inc.3.20% due May 15, 2014 500,769 524,270

12,358,689 12,715,142

United States Treasury Notes – 9.5%1,500,000 United States Treasury Notes

2.13% due Nov. 30, 2014 1,488,574 1,529,5323,500,000 United States Treasury Notes

2.75% due Feb. 15, 2019 3,433,328 3,479,221

4,921,902 5,008,753


MONEY MARKET INSTRUMENTS – 8.4%1,725,000 Canadian Wheat Board, The Commerical Paper

(U.S.) 0.14% to 0.20% due fromJul. 16, 2010 to Sep. 15, 2010 1,724,322 1,724,484

2,720,000 Export Development Canada Commerical Paper(U.S.) 0.12% to 0.21% due from

Aug. 17, 2010 to Oct. 14, 2010 2,718,915 2,719,237

4,443,237 4,443,721


OTHER ASSETS, LESS LIABILITIES – (3.6)% (1,894,674)

NET ASSETS – 100.0% 52,838,455




Federal Bonds 13.6 12.5Provincial Bonds 48.0 52.2Corporate Bonds 24.1 19.1United States Treasury Notes 9.5 4.6Money Market Instruments 8.4 9.6


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29

Scotia U.S. $ Bond Fund (Unaudited – Continued)



Interest Rate Exposure*June 30, 2010

(U.S. $)December 31, 2009

(U.S. $)

Less than 1 year $ 1,411,772 $ –1-3 years 19,517,354 4,073,3343-5 years 12,845,574 13,664,6155-10 years 16,514,708 10,591,674H 10 years – –

Total $50,289,408 $28,329,623


As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$515,106, 1.0% of the total net assets (December 31, 2009 – $313,338, 1.0% ofthe total net assets). In practice, actual results may differ from this sensitivityanalysis and the difference could be material.








June 30, 2010 December 31, 2009

AAA 28.4 27.0 21.8 19.3AA 26.1 24.9 28.6 25.3A 41.1 39.1 46.2 40.9BBB 4.4 4.2 3.4 2.9

Total 100.0 95.2 100.0 88.4




June 30, 2010 December 31, 2009



June 30, 2010Level 1(U.S. $)

Level 2(U.S. $)

Level 3(U.S. $)

Total(U.S. $)


$ – $54,733,129 $ – $54,733,129

December 31, 2009Level 1(U.S. $)

Level 2(U.S. $)

Level 3(U.S. $)

Total(U.S. $)


$ – $31,388,990 $ – $31,388,990



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Scotia U.S. $ Bond Fund (Unaudited – Continued)

Scotia Global Bond Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $96,615,390 $92,650,084Cash 111,110 138,042Accrued investment income 1,326,115 1,045,756Subscriptions receivable 793 67,333Receivable for currency forward contracts 271,885 –

98,325,293 93,901,215

LIABILITIESDistributions payable 445 2Redemptions payable 77,333 4,719Accrued expenses 38,582 23,572Payable for currency forward contracts – 1,944,686

116,360 1,972,979

Net Assets $98,208,933 $91,928,236

NET ASSETS PER CLASSClass A Units $20,518,914 $21,582,177Class I Units $77,690,019 $70,346,059




2010 2009INVESTMENT INCOMEInterest $1,525,006 $ 1,003,345Securities lending – 109

1,525,006 1,003,454

EXPENSESManagement fees (note 5) 152,770 190,120Audit fees 6,617 6,759Independent Review Committee fees 277 310Custodian fees 818 733Filing fees 8,188 8,550Legal fees 2,230 2,432Unitholder reporting costs 8,063 10,151Unitholder administration, service fees and GST 63,247 76,548Overdraft charges 168 40


239,959 273,110

Net investment income (loss) 1,285,047 730,344

Net realized gain (loss) on investments sold (320,374) (32,357)Net realized gain (loss) on currency forwards 184,794 (1,953,293)Net realized gain (loss) on foreign exchange (104,041) (205,874)Change in unrealized appreciation (depreciation) of investments 634,843 (2,481,767)Change in unrealized appreciation (depreciation) of currency forwards 2,216,571 (76,356)

Net gain (loss) on investments 2,611,793 (4,749,647)

Increase (decrease) in Net Assets from operations $3,896,840 $(4,019,303)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 599,113 $(2,475,183)Class I Units $3,297,727 $(1,544,120)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.24 $ (0.91)Class I Units $ 0.36 $ (0.71)


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 21,582,177 $26,838,482Class I Units 70,346,059 22,348,120

91,928,236 49,186,602

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 599,113 (2,475,183)Class I Units 3,297,727 (1,544,120)

3,896,840 (4,019,303)


Class A Units (121,618) (329,417)Class I Units (1,269,995) (468,561)

(1,391,613) (797,978)


Class A Units 1,041,168 5,047,231Class I Units 14,626,924 6,304,077

Reinvested distributionsClass A Units 121,130 327,280Class I Units 1,269,684 466,395

Payments on redemptionClass A Units (2,703,056) (4,792,709)Class I Units (10,580,380) (4,077,439)

3,775,470 3,274,835

INCREASE (DECREASE) IN NET ASSETSClass A Units (1,063,263) (2,222,798)Class I Units 7,343,960 680,352

6,280,697 (1,542,446)

NET ASSETS – END OF PERIODClass A Units 20,518,914 24,615,684Class I Units 77,690,019 23,028,472

$ 98,208,933 $47,644,156

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AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS – 92.3%Australian Dollar – 5.3%

2,000,000 Kreditanstalt fuer Wiederaufbau5.75% due May 13, 2015 1,901,306 1,802,755

2,000,000 New South Wales Treasury Corporation5.25% due May 1, 2013 1,866,364 1,816,996


5,294,987 5,252,001

British Pound – 7.9%500,000 Network Rail Infrastructure Finance PLC

4.88% due Mar. 7, 2012 966,420 843,6321,000,000 Network Rail Infrastructure Finance PLC

4.63% due Jul. 21, 2020 1,857,225 1,685,039500,000 United Kingdom Treasury Gilt

5.00% due Mar. 7, 2012 965,704 851,629900,000 United Kingdom Treasury Gilt

5.00% due Mar. 7, 2018 1,768,872 1,630,797800,000 United Kingdom Treasury Gilt

5.00% due Mar. 7, 2025 1,580,967 1,428,994800,000 United Kingdom Treasury Gilt

4.25% due Dec. 7, 2049 1,481,089 1,295,455

8,620,277 7,735,546

Canadian Dollar – 5.1%2,000,000 Canada Housing Trust No. 1

4.10% due Dec. 15, 2018 2,076,840 2,102,0761,500,000 Government of Canada

1.25% due Dec. 1, 2011 1,492,350 1,501,6761,100,000 Government of Canada

5.75% due Jun. 1, 2033 1,346,050 1,452,487

4,915,240 5,056,239

European Euro – 27.2%2,000,000 Bank Nederlandse Gemeenten NV

3.88% due Nov. 4, 2019 3,159,085 2,778,1453,500,000 Deutschland Bundersrepublik

4.25% due Jul. 4, 2018 5,887,218 5,201,2242,000,000 European Community

3.63% due Apr. 6, 2016 3,228,241 2,788,9453,000,000 European Investment Bank

3.63% due Oct. 15, 2013 4,914,738 4,166,0851,500,000 Government of France

4.00% due Oct. 25, 2014 2,347,585 2,133,2631,300,000 Government of France

4.00% due Oct. 25, 2038 1,777,739 1,774,1793,000,000 International Bank for Reconstruction and Development

3.88% due May 20, 2019 4,820,102 4,212,8511,500,000 Netherlands Government

4.00% due Jul. 15, 2019 2,439,480 2,160,6461,060,000 Province of Ontario

4.13% due May 14, 2013 1,675,600 1,470,389

30,249,788 26,685,727

United States Dollar – 46.8%500,000 European Investment Bank

5.25% due Jun. 15, 2011 521,305 554,2243,000,000 Export Development Canada

1.75% due Sep. 24, 2012 3,198,313 3,246,9242,500,000 Government of Canada

2.38% due Sep. 10, 2014 2,702,717 2,727,5761,300,000 HSBC USA Inc.

3.13% due Dec. 16, 2011 1,505,308 1,432,371900,000 Kreditanstalt fuer Wiederaufbau

4.50% due Jul. 16, 2018 905,808 1,044,4691,500,000 Oesterreichische Kontrollbank AG

5.00% due Apr. 25, 2017 1,633,650 1,703,2042,280,000 Province of British Columbia

4.30% due May 30, 2013 2,684,358 2,630,478


AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)United States Dollar (cont’d)

1,340,000 Province of Nova Scotia8.88% due Jul. 1, 2019 2,080,860 1,971,742

900,000 Province of Saskatchewan7.38% due Jul. 15, 2013 1,286,994 1,120,567

11,000,000 U.S. Treasury Note1.38% due Oct. 15, 2012 11,531,486 11,862,615

5,000,000 U.S. Treasury Note3.63% due Aug. 15, 2019 5,536,144 5,608,551

5,215,000 U.S. Treasury Note4.50% due Feb. 15, 2036 5,801,520 6,097,570

5,000,000 U.S. Treasury Note4.63% due Feb. 15, 2040 5,027,088 5,941,739

44,415,551 45,942,030


MONEY MARKET INSTRUMENTS – 6.1%1,010,000 Canadian Wheat Board, The Commercial Paper

(U.S.) 0.17% to 0.20% due fromJul. 16, 2010 to Sep. 15, 2010 1,049,566 1,073,929

4,580,000 Export Development Canada Commercial Paper(U.S.) 0.12% to 0.21% due from

Aug. 17, 2010 to Sep. 15, 2010 4,774,960 4,869,918

5,824,526 5,943,847


Currency Forward Contracts – 0.3% 271,885OTHER ASSETS, LESS LIABILITIES – 1.3% 1,321,658

NET ASSETS – 100.0% 98,208,933

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Scotia Global Bond Fund (Unaudited – Continued)

S T AT E M E N T O F I N V E S T M E N T P O R T F O L I OC U R R E N C Y F O R W A R D C O N T R A C T S

Settlement Date Currency To Be ReceivedContractual

Amount Currency To Be DeliveredContractual

AmountCanadian Value as at

June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 1,623,400 U.S. Dollar 1,575,275 1,678,360 (54,960)Sep. 30, 2010 Japanese Yen 2,172,445,316 U.S. Dollar 24,419,101 25,927,240 206,730Sep. 30, 2010 South Korean Won 1,450,000,009 U.S. Dollar 1,203,220 1,307,668 (46,971)Sep. 30, 2010 U.S. Dollar 4,110,242 Australian Dollar 4,765,498 4,218,266 153,169Sep. 30, 2010 U.S. Dollar 1,412,069 British Pound 937,038 1,489,150 12,652Sep. 30, 2010 U.S. Dollar 147,070 European Euro 119,234 155,150 1,265

271,885

The currency forward contracts outstanding at June 30, 2010 are placed with a financial institution with a credit rating of AA- by Standard & Poor’s.




Australian Dollar Bonds 5.3 5.9Brazilian Real Bonds – 1.9British Pound Bonds 7.9 8.7Canadian Dollar Bonds 5.1 6.4European Euro Bonds 27.2 31.9United States Dollar Bonds 46.8 41.1Money Market Instruments 6.1 4.9Currency Forward Contracts 0.3 (2.1)

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Less than 1 year $ 554,224 $ –1-3 years 27,288,960 19,188,3573-5 years 11,950,246 20,950,0615-10 years 31,202,650 34,850,351H 10 years 19,675,463 13,130,123

Total $90,671,543 $88,118,892



Currency risk (note 3)The tables below indicate the currencies to which the Fund had significantexposure, net of the impact of foreign currency forward contracts, if any, basedon the fair value of the Fund’s financial instruments.

CurrencyNet CurrencyExposure ($)


Net CurrencyExposure ($)


June 30, 2010 December 31, 2009

U.S. Dollar 28,847,782 29.4 21,022,848 22.9European Euro 26,530,578 27.0 30,340,588 33.0Japanese Yen 25,927,240 26.4 30,510,587 33.2British Pound 6,246,396 6.4 3,326,988 3.6South Korean Won 1,307,668 1.3 – –Australian Dollar 1,033,735 1.1 880,469 1.0Brazilian Real – – 1,773,850 1.9Norwegian Krone – – 79,035 0.1Mexican Peso – – 12,394 0.0Singapore Dollar – – 32,512 0.0Swiss Franc – – (1,924) 0.0

Total 89,893,399 91.6 87,977,347 95.7

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$8,989,340 approximately 9.2% of total net assets, (December 31, 2009 –$8,797,735, approximately 9.6% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.








June 30, 2010 December 31, 2009

AAA 90.2 83.3 86.8 83.3AA 7.6 7.0 11.1 10.6A 2.2 2.0 2.1 2.0

Total 100.0 92.3 100.0 95.9



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $116,360 $ 28,293Currency Forward Contracts 101,931 2,735,396

$218,291 $2,763,689



Bond and Debenture Instruments $ – $ 90,671,543 $ – $ 90,671,543Money Market Instruments – 5,943,847 – 5,943,847Currency Forward Contracts – 271,885 – 271,885

$ – $96,887,275 $ – $96,887,275



– 92,650,084 – 92,650,084

Currency Forward Contracts – (1,944,686) – (1,944,686)

$ – $90,705,398 $ – $90,705,398


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Scotia Advantaged Income Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $55,432,735 $50,821,769Cash 108,936 114,399Accrued investment income 51,610 191,119Receivable for securities sold 272,540 –Receivable for currency forward contracts – 71,297

55,865,821 51,198,584

LIABILITIESPayable for securities purchased 155,008 –Distributions payable 401,502 352,199Accrued expenses 12,025 –Payable for currency forward contracts 340,633 –

909,168 352,199

Net Assets $54,956,653 $50,846,385

NET ASSETS PER CLASSManager Class Units $54,956,653 $50,846,385

UNITS OUTSTANDINGManager Class Units 6,691,693 5,869,987

NET ASSETS PER UNITManager Class Units $ 8.21 $ 8.66


2010 2009INVESTMENT INCOMEDividends $ 359,863 $ 385,993Interest 554,427 449,672Foreign withholding taxes/Tax reclaims (17,569) (15,020)

896,721 820,645

EXPENSESManagement fees (note 5) 27,263 18,501Audit fees 9,865 8,696Custodian fees 2,844 1,980Filing fees 6,954 6,821Legal fees 1,602 1,769Unitholder reporting costs 3,556 3,703Unitholder administration, service fees and GST 19,883 19,338Overdraft charges 124 –

72,091 60,808


Net realized gain (loss) on investments sold 2,363,466 (2,311,647)Net realized gain (loss) on futures contracts 45,951 –Net realized gain (loss) on currency forwards 716,968 140,988Net realized gain (loss) on foreign exchange (12,081) (38,292)Transaction costs (65,654) (69,456)Change in unrealized appreciation (depreciation) of investments (4,070,256) 6,134,340Change in unrealized appreciation (depreciation) of currency forwards (411,930) (119,359)

Net gain (loss) on investments (1,433,536) 3,736,574

Increase (decrease) in Net Assets from operations $ (608,906) $ 4,496,411

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* $ (608,906) $ 4,496,411

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITManager Class Units* $ (0.10) $ 0.93


2010 2009NET ASSETS – BEGINNING OF PERIODManager Class Units* $50,846,385 $35,496,721

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* (608,906) 4,496,411


Manager Class Units* (2,307,581) (1,746,511)


Manager Class Units* 13,116,974 7,791,974Payments on redemption


7,026,755 2,605,971

INCREASE (DECREASE) IN NET ASSETSManager Class Units* 4,110,268 5,355,871

NET ASSETS – END OF PERIODManager Class Units* $54,956,653 $40,852,592




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As at June 30, 2010

Numberof Shares Issuer

AverageCost ($)

FairValue ($)

EQUITIES – 61.5%CANADIAN EQUITIES – 37.7%Energy – 10.5%

4,600 ARC Energy Trust 99,898 90,6666,600 Baytex Energy Trust 210,552 209,8803,592 Bonavista Energy Trust 78,057 81,9347,600 Cameco Corporation 193,947 172,064

35,950 Canadian Natural Resources Ltd. 1,257,014 1,270,11420,676 Canadian Oil Sands Trust 597,872 558,04516,023 Cenovus Energy Inc. 489,608 439,030

7,660 Daylight Energy Ltd. 84,792 68,17412,463 EnCana Corporation 438,926 401,807

5,578 Imperial Oil Ltd. 223,503 216,31517,051 NAL Oil & Gas Trust 208,915 180,059

9,027 Nexen Inc. 227,909 189,0251,645 Petrobank Energy and Resources Ltd. 80,631 61,6058,902 ShawCor Ltd. 249,135 238,930

29,077 Suncor Energy, Inc. 1,056,381 910,98218,935 Talisman Energy Inc. 301,975 304,854

7,224 TransCanada Corporation 228,554 257,2473,978 Vermilion Energy Trust 118,144 133,382

6,145,813 5,784,113

Materials – 7.3%3,330 Agnico-Eagle Mines Limited 207,440 215,0513,296 Agrium Inc. 187,669 171,359

21,668 Barrick Gold Corporation 965,622 1,046,99817,326 Goldcorp, Inc. 758,475 807,56514,100 HudBay Minerals, Inc. 165,332 157,49736,925 Lundin Mining Corporation 155,772 111,144

6,652 Potash Corporation of Saskatchewan Inc. 697,683 609,85512,032 Quadra FNX Mining Ltd. 165,332 117,07112,800 Sino-Forest Corporation 250,866 193,66418,685 Teck Resources Ltd., Class B 656,259 588,204

4,210,450 4,018,408

Industrials – 2.2%24,000 Bombardier Inc., Class B 129,137 116,160

5,975 CAE, Inc. 53,676 55,1497,237 Canadian National Railway Company 374,026 441,5292,114 Canadian Pacific Railway Limited 106,761 120,6254,330 Finning International Inc. 77,422 76,3382,790 Russel Metals Inc. 50,361 50,2765,460 SNC-Lavalin Group Inc. 259,897 232,6518,210 WestJet Airlines Ltd. 96,504 97,371

1,147,784 1,190,099

Consumer Discretionary – 1.5%1,693 Gildan Activewear Inc. 40,372 51,7043,560 Magna International Inc. 198,814 249,6636,978 Shaw Communications, Inc., Class B 141,206 133,7688,789 Thomson Reuters Corporation 309,511 334,8611,860 Tim Hortons, Inc. 62,215 63,389

752,118 833,385

Consumer Staples – 1.1%2,578 Metro Inc. 102,874 107,7865,778 Saputo Inc. 167,174 175,2479,753 Shoppers Drug Mart Corporation 402,010 320,971

672,058 604,004

Financials – 12.3%11,339 Bank of Montreal 612,399 654,71418,551 Bank of Nova Scotia, The 784,301 909,741

8,101 Canadian Imperial Bank of Commerce 517,949 535,8005,200 First Capital Realty Inc. 69,679 70,7208,000 Genworth MI Canada Inc. 227,440 185,520

Numberof Shares/Numberof Contract Issuer

AverageCost ($)

FairValue ($)

EQUITIES (cont’d)CANADIAN EQUITIES (cont’d)Financials (cont’d)

8,033 Great-West Lifeco Inc. 194,802 193,2744,695 Intact Financial Corporation 164,141 210,806

21,798 Manulife Financial Corporation 443,130 336,77980 Manulife Financial Corporation, Call Options $20.00 Jul. 16, 2010 2,480 160

(80) Manulife Financial Corporation, Written Put Options $17.00Jul. 16, 2010 (2,920) (11,680)

3,310 National Bank of Canada 180,595 180,23013,822 Power Corporation of Canada 380,245 352,59926,911 Royal Bank of Canada 1,370,273 1,364,38813,708 Sun Life Financial Inc. 410,629 383,27620,312 Toronto-Dominion Bank, The 1,052,282 1,401,122

6,407,425 6,767,449

Information Technology – 1.2%13,053 Research In Motion Limited 1,009,022 683,063

Telecommunication Services – 1.4%10,220 BCE Inc. 311,389 317,433

5,923 Rogers Communications, Inc., Class B 211,345 206,0025,506 TELUS Corporation 191,900 221,176

714,634 744,611

Utilities – 0.2%2,355 Emera Inc. 54,630 57,8622,717 Fortis, Inc. 70,152 73,821

124,782 131,683

TOTAL CANADIAN EQUITIES 21,184,086 20,756,815

UNITED STATES EQUITIES – 23.8%Energy – 2.5%

4,740 Anadarko Petroleum Corporation 330,706 181,7363,863 Chevron Corporation 301,283 278,6372,770 Concho Resources Inc. 145,047 162,9743,344 Exxon Mobil Corporation 251,395 202,578

10,400 Halliburton Company 333,300 271,5452,969 Hess Corporation 185,517 158,9572,200 Southwestern Energy Company 100,158 90,387

1,647,406 1,346,814

Materials – 0.7%2,921 Dow Chemical Company, The 86,998 73,6892,344 E.I. du Pont de Nemours and Company 85,032 86,231

735 Eastman Chemical Company 46,411 41,712964 Freeport-McMoRan Copper & Gold Inc., Class B 72,761 60,613

1,489 International Flavors & Fragrances Inc. 65,621 67,1771,052 Monsanto Company 85,504 51,691

615 Mosaic Company, The 35,420 25,496

477,747 406,609

Industrials – 2.5%1,533 3M Co. 122,012 128,721

17,146 General Electric Company 293,216 262,4105,482 Honeywell International Inc. 230,267 227,2684,092 Illinois Tool Works Inc. 206,565 179,6524,600 Norfolk Southern Corporation 263,594 259,4882,610 Northrop Grumman Corporation 160,557 151,1182,012 United Technologies Corporation 146,292 138,770

1,422,503 1,347,427

Consumer Discretionary – 2.7%4,160 Big Lots, Inc. 154,788 141,9785,570 D.R. Horton, Inc. 73,985 58,2323,650 Family Dollar Stores, Inc. 146,085 146,3115,160 GameStop Corporation 104,422 103,008

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For equities, all common shares unless otherwise noted.The accompanying notes are an integral part of the financial statements.

36


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Consumer Discretionary (cont’d)

5,900 Home Depot Inc., The 197,869 175,8865,570 Johnson Controls, Inc. 175,247 159,0586,470 Limited Brands, Inc. 147,036 151,7296,450 Macy’s, Inc. 138,001 122,6557,500 Mattel, Inc. 173,690 168,785

898 McDonald’s Corporation 60,554 62,8914,975 Viacom Inc., Class B 171,318 165,930

1,542,995 1,456,463

Consumer Staples – 2.6%2,405 Clorox Company, The 158,614 158,9952,800 Hershey Company, The 119,917 142,6733,735 PepsiCo, Inc. 242,089 241,9563,939 Procter & Gamble Company, The 254,784 250,9405,560 Sysco Corporation 166,772 168,944

10,295 Tyson Foods, Inc. 192,588 179,2393,010 Wal-Mart Stores, Inc. 154,429 153,8213,310 Whole Foods Markets, Inc. 120,938 126,732

1,410,131 1,423,300

Health Care – 2.9%4,160 AmerisourceBergen Corporation 116,771 140,4734,015 Johnson & Johnson 267,692 252,1091,680 McKesson Corporation 110,133 119,9815,010 Medtronic, Inc. 229,580 193,2606,708 Merck & Co., Inc. 263,396 249,271

13,336 Pfizer Inc. 240,875 202,1145,040 UnitedHealth Group Incorporated 166,244 152,1255,180 WellPoint Inc. 324,864 269,564

1,719,555 1,578,897

Financials – 4.3%4,803 Aflac, Inc. 243,176 217,9165,457 American Express Company 245,529 230,178

14,037 Bank of America Corporation 243,214 214,3811,650 Goldman Sachs Group, Inc., The 247,673 230,0795,787 JPMorgan Chase & Co. 244,171 225,2028,055 Lincoln National Corporation 227,946 207,7475,470 MetLife, Inc. 249,462 219,5563,514 PNC Financial Services Group, Inc., The 245,200 211,1203,754 Prudential Financial, Inc. 210,417 214,2018,922 U.S. Bancorp 245,830 212,0787,133 Wells Fargo & Company 209,250 193,905

2,611,868 2,376,363

Numberof Shares/FaceValue ($) Issuer

AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Information Technology – 4.8%

6,435 Accenture PLC 275,017 264,3122,138 Apple Inc. 487,270 571,8319,927 Broadcom Corporation 336,601 347,986

13,312 Cisco Systems, Inc. 348,633 301,56414,935 EMC Corporation 287,450 290,36111,942 Intel Corporation 261,909 246,90517,630 Microsoft Corporation 526,223 431,258

2,007 Rackspace Hosting, Inc. 34,439 39,1478,460 Symantec Corporation 149,392 124,887

2,706,934 2,618,251

Telecommunication Services – 0.3%1,604 American Tower Corporation 69,238 75,8122,534 Verizon Communications Inc. 82,845 75,488

152,083 151,300

Utilities – 0.5%2,000 Integrys Energy Group, Inc. 82,716 93,0182,269 PG&E Corporation 99,926 99,1101,962 Questar Corporation 88,153 94,902

270,795 287,030

TOTAL UNITED STATES EQUITIES 13,962,017 12,992,454

TOTAL EQUITIES 35,146,103 33,749,269

FIXED INCOME FUND – 33.1%1,760,274 Scotia Canadian Corporate Bond Fund Class I 18,120,806 18,197,004

MONEY MARKET INSTRUMENTS – 6.3%3,105,000 Government of Canada, Treasury Bills


360,000 Export Development Canada Commercial Paper(U.S.) 0.11% to 0.12% due Aug. 17, 2010 376,036 382,819

3,479,266 3,486,462


Currency Forward Contracts – (0.6)% (340,633)OTHER ASSETS, LESS LIABILITIES – (0.3)% (135,449)

NET ASSETS – 100.0% 54,956,653

C U R R E N C Y F O R W A R D C O N T R A C T S




June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 20,139,640 U.S. Dollar 19,400,482 20,668,494 (528,854)Sep. 30, 2010 U.S. Dollar 7,024,427 Canadian Dollar 7,295,640 7,283,224 187,584Sep. 30, 2010 U.S. Dollar 282,194 Canadian Dollar 300,000 299,489 637

(340,633)



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Canadian Equities 37.7 45.7United States Equities 23.8 14.2Bond and Debenture Instruments – 37.4Fixed Income Fund 33.1 –Money Market Instruments 6.3 2.7Currency Forward Contracts (0.6) 0.1




Less than 1 year $ – $ 394,5801-3 years – 2,203,4943-5 years – 2,442,1835-10 years – 13,966,183H 10 years – –

Total $ – $19,006,440

* Excludes cash, money market instruments, holdings of the Scotia CanadianCorporate Bond Fund and preferred shares as applicable.

As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$200,558, 0.4% of the total net assets (December 31, 2009 – $243,585, 0.5% ofthe total net assets). In practice, actual results may differ from this sensitivityanalysis and the difference could be material.

Currency risk (note 3)The tables below indicate the currency to which the Fund had significantexposure, net of the impact of foreign currency forward contracts, if any, basedon the fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

U.S. Dollar 293,862 0.5 1,621,861 3.2

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by $29,386approximately 0.1% of total net assets, (December 31, 2009 – $162,186,approximately 0.3% of total net assets). In practice, actual results may differfrom this sensitivity analysis and the difference could be material.

Other price risk (note 3)The table below indicates the estimated impact on the net assets of the Funddue to a 20% change in the respective market indices, with all other variablesheld constant. The Fund’s historical sensitivity measure may not berepresentative of its future sensitivity measure, and accordingly, the impact onnet assets could be materially different.

BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009

Impact on Net Assets ($) Impact on Net Assets (%)

DEX Universe Bond Index – 40%,S&P/TSX Composite Index – 35%,S&P 500 Index – 25%

Blended Benchmark Impact(product of all the benchmarksabove) 12,420,204 11,491,283 22.6 22.6


Percentage ofBond andDebenture

Instruments (%)Percentage ofNet Assets (%)

Percentage ofBond andDebenture

Instruments (%)Percentage ofNet Assets (%)

June 30, 2010 December 31, 2009

AAA – – 10.5 3.9AA – – 23.3 8.7A – – 54.7 20.5BBB – – 11.5 4.3

Total – – 100.0 37.4



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $ 568,535 $352,199Currency Forward Contracts 528,854 –

$1,097,389 $352,199

Fair value classification (note 2)The table below illustrates the classification of the Fund’s financial instruments withinthe fair value hierarchy as at June 30, 2010 and December 31, 2009, respectively.


Equities $ 33,760,789 $ – $ – $ 33,760,789Options (Calls/Written Puts) (11,520) – – (11,520)Mutual Funds 18,197,004 – – 18,197,004Money Market Instruments – 3,486,462 – 3,486,462

51,946,273 3,486,462 – 55,432,735

Currency Forward Contracts – (340,633) – (340,633)

$51,946,273 $3,145,829 $ – $55,092,102


Equities $ 30,472,216 $ – $ – $ 30,472,216Bond and Debenture Instruments – 19,006,440 – 19,006,440Money Market Instruments – 1,346,649 – 1,346,649Currency Forward Contracts – 71,297 – 71,297

30,472,216 20,424,386 – 50,896,602

Options (Written Calls) (3,536) – – (3,536)

$30,468,680 $20,424,386 $ – $50,893,066



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Scotia Diversified Monthly Income Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $1,256,678,315 $ 991,762,565Cash 578,861 461,402Accrued investment income 4,283,470 4,414,458Receivable for securities sold 1,467,116 67,735Subscriptions receivable 4,386,258 3,519,838Receivable for currency forward contracts – 231,023

1,267,394,020 1,000,457,021

LIABILITIESPayable for securities purchased 3,575,880 10,977,760Distributions payable 371,834 272,000Redemptions payable 1,344,333 574,846Accrued expenses 1,421,504 –Payable for futures contracts 201,000 1,080Payable for currency forward contracts 570,919 –

7,485,470 11,825,686

Net Assets $1,259,908,550 $ 988,631,335

NET ASSETS PER CLASSClass A Units $1,254,874,669 $ 984,146,052Advisor Class Units $ 4,905,209 $ 4,468,943Class F Units $ 128,672 $ 16,340

UNITS OUTSTANDINGClass A Units 131,587,413 101,842,621Advisor Class Units 517,347 464,158Class F Units 13,187 1,660

NET ASSETS PER UNITClass A Units $ 9.54 $ 9.66Advisor Class Units $ 9.48 $ 9.63Class F Units $ 9.76 $ 9.85


2010 2009INVESTMENT INCOMEDividends $ 9,958,478 $ 6,254,019Interest 13,214,835 9,218,131Capital gains distributions received 28,037 60,376Securities lending 109,934 123,201Foreign withholding taxes/Tax reclaims (209,208) (202,014)

23,102,076 15,453,713

EXPENSESManagement fees (note 5) 7,172,125 3,658,225Audit fees 13,907 13,004Independent Review Committee fees 2,219 1,438Custodian fees 5,939 4,736Filing fees 37,596 31,988Legal fees 6,652 5,619Unitholder reporting costs 40,165 33,567Unitholder administration, service fees and GST 603,891 361,650Overdraft charges 24 3,977


7,880,506 4,105,277


Net realized gain (loss) on investments sold (3,268,858) (13,579,227)Net realized gain (loss) on futures contracts (451,164) 232,930Net realized gain (loss) on currency forwards (424,423) 78,735Net realized gain (loss) on foreign exchange 86,051 72,018Transaction costs (745,222) (242,250)Change in unrealized appreciation (depreciation) of investments (7,843,819) 46,421,548Change in unrealized appreciation (depreciation) of currency

forwards (801,942) 88,974Change in unrealized appreciation (depreciation) of future contracts – (100)

Net gain (loss) on investments and transaction costs (13,449,377) 33,072,628

Increase (decrease) in Net Assets from operations $ 1,772,193 $ 44,421,064

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 1,763,583 $ 44,314,910Advisor Class Units $ 10,902 $ 105,288Class F Units $ (2,292) $ 866

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.01 $ 0.64Advisor Class Units $ 0.02 $ 0.94Class F Units $ (0.41) $ 0.65


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 984,146,052 $547,483,901Advisor Class Units 4,468,943 138,381Class F Units 16,340 10,304

988,631,335 547,632,586

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 1,763,583 44,314,910Advisor Class Units 10,902 105,288Class F Units (2,292) 866

1,772,193 44,421,064


Class A Units (21,612,530) (12,583,030)Advisor Class Units (95,004) (22,599)Class F Units (1,122) (243)

(21,708,656) (12,605,872)


Class A Units 361,541,654 140,727,239Advisor Class Units 1,485,612 1,778,328Class F Units 115,971 3,232

Reinvested distributionsClass A Units 19,655,507 11,772,306Advisor Class Units 79,544 17,405Class F Units 525 243

Payments on redemptionClass A Units (90,619,597) (45,958,761)Advisor Class Units (1,044,788) (56,638)Class F Units (750) (921)

291,213,678 108,282,433

INCREASE (DECREASE) IN NET ASSETSClass A Units 270,728,617 138,272,664Advisor Class Units 436,266 1,821,784Class F Units 112,332 3,177

271,277,215 140,097,625

NET ASSETS – END OF PERIODClass A Units 1,254,874,669 685,756,565Advisor Class Units 4,905,209 1,960,165Class F Units 128,672 13,481

$1,259,908,550 $687,730,211


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As at June 30, 2010


AverageCost ($)

FairValue ($)

EQUITIES – 54.0%Canadian Equities – 52.0%Energy – 14.2%

191,945 AltaGas Income Trust 4,367,004 3,541,385454,392 ARC Energy Trust 9,253,918 8,956,066249,558 Baytex Energy Trust 6,723,093 7,935,944406,264 Bonavista Energy Trust 8,997,586 9,266,882200,000 Cameco Corporation 4,845,880 4,528,000638,434 Canadian Natural Resources Ltd. 22,548,097 22,555,873467,996 Canadian Oil Sands Trust 14,422,889 12,631,212540,645 Cenovus Energy Inc. 15,777,445 14,813,673623,952 Daylight Energy Ltd. 5,500,377 5,553,173570,271 EnCana Corporation 18,598,448 18,385,537134,430 Imperial Oil Ltd. 5,133,453 5,213,195

88,412 Keyera Facilities Income Fund 1,561,713 2,364,137422,344 Mullen Group Limited 6,787,582 6,031,072244,354 NAL Oil & Gas Trust 2,701,814 2,580,378407,950 Pengrowth Energy Trust 4,225,037 3,969,354795,577 Suncor Energy, Inc. 25,287,613 24,925,427559,695 TransCanada Corporation 19,253,578 19,930,739178,057 Vermilion Energy Trust 5,850,752 5,970,251

181,836,279 179,152,298

Materials – 3.0%407,198 Barrick Gold Corporation 17,585,616 19,675,807269,742 Norbord Inc. 5,068,984 3,056,177905,000 Norbord Inc. Warrants $13.60 Dec. 24, 2013* – 660,650446,385 Teck Resources Ltd., Class B 17,754,822 14,052,200

40,409,422 37,444,834

Industrials – 2.9%931,473 Bombardier Inc., Class B 4,566,351 4,508,329240,764 Canadian National Railway Company 13,637,055 14,689,012143,988 Genivar Income Fund 3,779,685 3,671,694123,497 IESI-BFC Ltd. 2,746,359 2,621,841287,984 Russel Metals Inc. 5,121,759 5,189,472335,984 Westshore Terminals Income Fund 4,444,588 5,815,883

34,295,797 36,496,231

Consumer Discretionary – 3.2%207,983 Magna International Inc. 14,511,024 14,585,848580,839 Shaw Communications, Inc., Class B 12,204,702 11,134,684368,980 Thomson Reuters Corporation 13,511,157 14,058,138

40,226,883 39,778,670

Consumer Staples – 0.8%185,000 Premium Brands Holdings Corp. 1,951,750 2,345,800248,428 Shoppers Drug Mart Corporation 10,515,680 8,175,765

12,467,430 10,521,565

Financials – 22.8%378,296 Bank of Montreal 20,718,864 21,842,811795,800 Bank of Nova Scotia, The 38,752,048 39,026,032200,000 Bank of Nova Scotia, The 3.85%, Preferred, Series 30 5,000,000 4,910,000106,888 Canadian Apartment Properties Real Estate Investment Trust 1,693,157 1,601,182266,236 Canadian Imperial Bank of Commerce 17,909,621 17,608,849

96,054 Cominar Real Estate Investment Trust 1,690,440 1,781,802192,050 Dundee Real Estate Investment Trust 4,686,020 4,695,623453,026 First Capital Realty Inc. 5,529,626 6,161,154

85,425 First Capital Realty Inc. Warrants $17.53 Oct. 29, 2010* – 379,287474,579 Genworth MI Canada Inc. 12,529,853 11,005,487250,000 Great West Lifeco Inc. 5.80%, Preferred, Series M 6,250,000 6,002,500211,328 Great-West Lifeco Inc. 6,258,290 5,084,552119,988 Intact Financial Corporation 3,933,713 5,387,461

Numberof Shares/Numberof Contract/FaceValue ($) Issuer

AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Canadian Equities (cont’d)Financials (cont’d)

672,025 Manulife Financial Corporation 17,844,016 10,382,7862,500 Manulife Financial Corporation, Call Options $20.00

Jul. 16, 2010 78,540 5,000(2,500) Manulife Financial Corporation, Written Put Options $17.00

Jul. 16, 2010 (93,875) (365,000)151,071 National Bank of Canada 8,688,458 8,225,816380,166 Power Corporation of Canada 10,461,530 9,698,035100,000 Power Financial Corporation 6% Preferred, Series M 2,680,000 2,686,000975,536 Royal Bank of Canada 55,344,450 49,459,675200,000 Royal Bank of Canada 6.25% Preferred, Series AR 5,550,000 5,466,000(1,500) Royal Bank of Canada, Writte Put Options $50.00 Jul. 16, 2010 (81,000) (103,500)(1,500) Royal Bank of Canada, Written Call Options $56.00 Jul. 16, 2010 (67,500) (22,500)

475,203 Sun Life Financial Inc. 17,310,662 13,286,676200,000 Sun Life Financial Inc. 4.35% Preferred, Series 8R 5,000,000 4,990,000761,658 Toronto-Dominion Bank, The 51,804,020 52,539,169200,000 Toronto-Dominion Bank, The 6.25%, Preferred, Series AG 5,233,000 5,562,000

304,703,933 287,296,897

Telecommunication Services – 2.7%408,396 BCE Inc. 12,497,627 12,684,780381,613 Rogers Communications, Inc., Class B 13,387,716 13,272,500216,005 TELUS Corporation Non-Voting 9,044,182 8,311,872

34,929,525 34,269,152

Utilities – 2.1%479,979 Atlantic Power Corporation 5,087,777 5,922,941432,058 Brookfield Infrastructure Partners LP 6,999,340 7,232,651

95,973 Brookfield Renewable Power Fund 1,690,696 1,917,541294,224 Emera Inc. 6,024,866 7,229,084

86,395 Fortis, Inc. 2,173,427 2,347,35274,448 TransAlta Corporation 1,810,198 1,461,414

23,786,304 26,110,983

Index Units – 0.3%33,000 iShares CDN S&P/TSX 60 Index Fund, Put Options $17.50

Aug. 20, 2010 3,575,880 3,729,000


United States Equities – 2.0%462,306 Enbridge Energy Partners, L.P. 22,919,029 25,754,415

TOTAL EQUITIES 699,150,482 680,554,045




49,397,189 49,484,160






6.50% due Mar. 8, 2029 44,222,286 45,798,663


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AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Provincial Bonds (cont’d)

3,220,000 Province of Quebec4.50% due Dec. 1, 2018 3,336,725 3,378,246

68,870,944 70,926,635


4.60% due Apr. 23, 2018 2,286,095 2,425,535





4.78% due Apr. 12, 2023 1,587,288 1,620,515710,000 Schooner Trust

4.36% due Sep. 12, 2020 672,400 720,1832,500,000 Schooner Trust

5.19% due Jun. 12, 2022 2,306,355 2,583,819

10,331,317 10,926,579


5.45% due Sep. 17, 2014 1,500,035 1,554,3273,000,000 Bell Canada

5.00% due Feb. 15, 2017 3,002,760 3,124,5792,225,000 Brookfield Renewable Power Inc.

8.75% due Feb. 3, 2012 2,248,835 2,412,988790,000 Canadian Imperial Bank of Commerce

5.00% due Sep. 10, 2012 792,936 836,5542,300,000 Canadian Natural Resources Limited




4.65% due Oct. 11, 2022-(2017) 1,637,805 1,521,1382,100,000 CU Inc.

4.80% due Nov. 22, 2021 2,070,324 2,168,259650,000 EnCana Corporation

4.30% due Mar. 12, 2012 650,815 673,6341,700,000 EnCana Corporation

5.80% due Jan. 18, 2018 1,727,480 1,871,1832,000,000 Finning International Inc.

6.02% due Jun. 1, 2018 2,003,095 2,210,1782,700,000 GE Capital Canada Funding Company

5.73% due Oct. 22, 2037 2,466,231 2,723,5551,670,000 Golden Credit Card Trust

4.25% due Feb. 15, 2011 1,638,926 1,700,2232,200,000 Great-West Lifeco Inc.

6.67% due Mar. 21, 2033 2,494,236 2,522,9912,300,000 Greater Toronto Airports Authority

7.10% due Jun. 4, 2031 2,712,001 2,787,9702,300,000 Honda Canada Finance Inc.

5.68% due Sep. 26, 2012 2,298,958 2,458,6222,130,000 Manulife Financial Corporation

4.90% due Jun. 2, 2014 2,132,464 2,244,742805,000 Morgan Stanley

4.90% due Feb. 23, 2017 801,586 779,7273,000,000 Mullen Group Limited

10.00% due Jul. 1, 2018 4,260,000 4,003,7432,500,000 NAV Canada

5.30% due Apr. 17, 2019 2,511,180 2,711,597


AverageCost ($)

FairValue ($)









59,854,943 62,394,778


FIXED INCOME FUNDS – 24.0%3,880,762 Scotia Canadian Income Fund Class I 50,167,868 50,780,936

17,269,795 Scotia Canadian Corporate Bond Fund Class I 174,729,943 178,528,2356,761,891 Scotia Mortgage Income Fund Class I 72,815,950 72,772,151

TOTAL FIXED INCOME FUNDS 297,713,761 302,081,322



300,000 Canadian Wheat Board, The Commerical Paper(U.S.) 0.17% to 0.18% due Jul. 16, 2010 311,396 319,041

77,861,706 77,885,261


Currency Forward Contracts – (0.1)% (570,919)Futures Contracts – 0.0% (201,000)OTHER ASSETS, LESS LIABILITIES – 0.4% 4,002,154

NET ASSETS – 100.0% 1,259,908,550



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(Depreciation) ($)

(75) Canada 10 Year Bond Future – Sep. 2010 (9,084,849) (9,287,250) (202,401)

(202,401)


With respect to the above futures contracts, $500,000 of the October 14, 2010 Government of Canada Treasury Bill.





AmountCanadian Value as

at June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 22,166,940 U.S. Dollar 21,342,891 22,737,859 (570,919)

(570,919)





Canadian Equities 52.0 56.8Foreign Equities 2.0 1.2Bond and Debenture Instruments 15.5 17.9Fixed Income Funds 24.0 21.6Money Market Instruments 6.2 2.8Currency Forward Contracts (0.1) 0.0Futures Contracts 0.0 0.0


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Less than 1 year $ 1,700,223 $ –1-3 years 64,701,490 53,403,1403-5 years 3,799,069 6,228,9875-10 years 65,486,120 66,877,224H 10 years 60,470,785 50,023,204

Total $196,157,687 $176,532,555

* Excludes cash, money market instruments, holdings of the Scotia MortgageIncome Fund, Scotia Canadian Corporate Bond Fund and preferred shares asapplicable.

As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$6,448,339, 0.5% of total net assets (December 31, 2009 – $2,667,687, 0.3% oftotal net assets). In practice, actual results may differ from this sensitivityanalysis and the difference could be material.






June 30, 2010 December 31, 2009

U.S. Dollar 3,343,974 0.3 12,585,950 1.3

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$334,397 approximately 0.0% of total net assets, (December 31, 2009 –$1,258,595, approximately 0.1% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.

Other price risk (note 3)The table below indicates the estimated impact on the net assets of the Funddue to a 20% change in the respective market indices using historical measureof sensitivity of the Fund’s return relative to return of its benchmark stockindex as of June 30, 2010 and December 31, 2009 respectively with all othervariable held constant. The Fund’s historical sensitivity measure may not berepresentative of its future sensitivity measure, and accordingly, the impact onNet Assets could be materially different.

BenchmarkImpact on

Net Assets ($)Impact on

Net Assets (%)

June 30, 2010

DEX Universe Bond Index – 55%,S&P/TSX Capped Composite Index TR – 35%S&P/TSX Financial Index TR – 10%

Blended Benchmark Impact(product of all the benchmarks above) 204,105,185 16.2

BenchmarkImpact on


Net Assets (%)

December 31, 2009

DEX Universe Bond Index – 55%,S&P/TSX Composite Index – 45%



Percentage ofBond



Percentage ofBond



June 30, 2010 December 31, 2009

AAA 41.7 7.5 36.7 7.1AA 38.7 6.9 37.7 7.2A 15.7 2.8 20.7 4.0BBB 2.1 0.4 2.5 0.5Unrated 1.8 0.3 2.4 0.5

Total 100.0 17.9 100.0 19.3



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $6,713,551 $11,824,606Futures Contracts 201,000 1,080Currency Forward Contracts 570,919 492,315

$7,485,470 $12,318,001



Equities $ 676,271,108 $ – $ – $ 676,271,108Warrants – 1,039,937 – 1,039,937Options (Calls/Written Puts) (463,500) – – (463,500)Mutual Funds 302,081,322 – – 302,081,322Bond and Debenture Instruments – 196,157,687 – 196,157,687Money Market Instruments – 77,885,261 – 77,885,261

977,888,930 275,082,885 – 1,252,971,815

Options (Puts/Written Calls) 3,706,500 – – 3,706,500Currency Forward Contracts – (570,919) – (570,919)Futures Contracts (Short) (202,401) – – (202,401)

3,504,099 (570,919) – 2,933,180

$981,393,029 $274,511,966 $ – $1,255,904,995


Equities $ 572,732,373 $ – $ – $ 572,732,373Warrants – 1,128,864 – 1,128,864Mutual Funds 213,619,475 – – 213,619,475Bonds and Debenture Instruments – 176,532,555 – 176,532,555Money Market Instruments – 27,821,298 – 27,821,298Currency Forward Contracts – 231,023 – 231,023

786,351,848 205,713,740 – 992,065,588

Options (Written Calls) (72,000) – – (72,000)Futures Contracts (Short) 110,160 – – 110,160

38,160 – – 38,160

$786,390,008 $205,713,740 $ – $992,103,748




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Scotia Canadian Balanced Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $2,302,666,427 $2,265,383,055Cash 273,108 1,558,068Accrued investment income 10,798,997 10,537,608Receivable for securities sold 8,225,574 98,846Subscriptions receivable 1,716,362 2,913,791Receivable for currency forward contracts – 3,379,641

2,323,680,468 2,283,871,009

LIABILITIESPayable for securities purchased 2,873,577 12,134,608Distributions payable 41,926 640Redemptions payable 1,777,718 1,104,110Accrued expenses 3,777,894 1,900,119Payable for futures contracts 100,400 118,291Payable for currency forward contracts 6,978,018 –

15,549,533 15,257,768

Net Assets $2,308,130,935 $2,268,613,241

NET ASSETS PER CLASSClass A Units $2,308,051,568 $2,268,573,529Class F Units $ 79,367 $ 39,712

UNITS OUTSTANDINGClass A Units 121,992,273 117,596,164Class F Units 4,286 2,096



2010 2009INVESTMENT INCOMEDividends $ 15,377,881 $ 15,527,252Interest 20,314,467 20,725,967Securities lending 61,543 75,042Foreign withholding taxes/Tax reclaims (373,172) (659,173)

35,380,719 35,669,088

EXPENSESManagement fees (note 5) 20,347,584 16,451,229Audit fees 13,907 14,297Independent Review Committee fees 8,625 8,708Custodian fees 55,582 48,256Filing fees 67,852 63,090Legal fees 21,193 21,172Unitholder reporting costs 144,223 184,902Unitholder administration, service fees and GST 1,997,771 1,843,182Overdraft charges 2,735 1,369


22,657,993 18,634,706


Net realized gain (loss) on investments sold 45,392,203 (76,646,433)Net realized gain (loss) on futures contracts (412,126) 1,613,232Net realized gain (loss) on currency forwards 21,331,176 2,972,083Net realized gain (loss) on foreign exchange (1,486,543) (100,591)Transaction costs (2,629,977) (3,865,762)Change in unrealized appreciation (depreciation) of investments (96,392,777) 174,425,776Change in unrealized appreciation (depreciation) of currency forwards (10,357,659) 648,033Change in unrealized appreciation (depreciation) of futures contracts – (700)


Increase (decrease) in Net Assets from operations $(31,832,977) $116,080,020

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(31,831,171) $116,076,810Class F Units $ (1,806) $ 3,210

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.26) $ 1.05Class F Units $ (0.65) $ 1.05


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $2,268,573,529 $1,841,151,990Class F Units 39,712 50,113

2,268,613,241 1,841,202,103

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (31,831,171) 116,076,810Class F Units (1,806) 3,210

(31,832,977) 116,080,020


Class A Units (13,868,209) (18,759,422)Class F Units (778) (760)

(13,868,987) (18,760,182)


Class A Units 238,693,884 193,265,317Class F Units 53,729 1,981

Reinvested distributionsClass A Units 13,810,404 18,594,420Class F Units 778 759

Payments on redemptionClass A Units (167,326,869) (95,981,936)Class F Units (12,268) –

85,219,658 115,880,541

INCREASE (DECREASE) IN NET ASSETSClass A Units 39,478,039 213,195,189Class F Units 39,655 5,190

39,517,694 213,200,379

NET ASSETS – END OF PERIODClass A Units 2,308,051,568 2,054,347,179Class F Units 79,367 55,303

$2,308,130,935 $2,054,402,482


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AverageCost ($)

FairValue ($)


239,200 ARC Energy Trust 5,193,801 4,714,632372,200 Baytex Energy Trust 11,874,630 11,835,960210,855 Bonavista Energy Trust 4,010,361 4,809,603392,000 Cameco Corporation 10,001,607 8,874,880

1,961,754 Canadian Natural Resources Ltd. 60,823,885 69,308,7691,142,947 Canadian Oil Sands Trust 33,484,922 30,848,140

886,688 Cenovus Energy Inc. 23,943,000 24,295,251382,300 Daylight Energy Ltd. 4,231,784 3,402,470656,518 EnCana Corporation 21,722,816 21,166,140245,553 Imperial Oil Ltd. 9,621,443 9,522,545940,745 NAL Oil & Gas Trust 11,403,328 9,934,267513,671 Nexen Inc. 14,132,816 10,756,271

780 Penn West Energy Trust 16,643 15,83495,202 Petrobank Energy and Resources Ltd. 4,342,928 3,565,315

405,898 ShawCor Ltd. 11,369,863 10,894,3021,584,227 Suncor Energy, Inc. 55,191,030 49,633,8321,100,581 Talisman Energy Inc. 16,721,031 17,719,354

398,942 TransCanada Corporation 13,164,111 14,206,325224,020 Vermilion Energy Trust 6,990,621 7,511,391

318,240,620 313,015,281

Materials – 9.5%183,372 Agnico-Eagle Mines Limited 10,765,754 11,842,164179,490 Agrium Inc. 10,844,516 9,331,685

1,181,177 Barrick Gold Corporation 42,432,923 57,074,473944,453 Goldcorp, Inc. 35,526,224 44,020,954773,300 HudBay Minerals, Inc. 9,067,481 8,637,761

2,014,140 Lundin Mining Corporation 8,314,779 6,062,561363,028 Potash Corporation of Saskatchewan Inc. 31,804,694 33,282,407655,900 Quadra FNX Mining Ltd. 9,070,392 6,381,907697,320 Sino-Forest Corporation 13,031,001 10,550,452

1,018,642 Teck Resources Ltd., Class B 29,255,874 32,066,850

200,113,638 219,251,214

Industrials – 2.9%1,600,000 Bombardier Inc., Class B 8,917,324 7,744,000

333,680 CAE, Inc. 2,998,280 3,079,866408,257 Canadian National Railway Company 17,550,366 24,907,760117,508 Canadian Pacific Railway Limited 4,986,974 6,705,006248,960 Finning International Inc. 4,450,763 4,389,165149,860 Russel Metals Inc. 2,708,197 2,700,477279,012 SNC-Lavalin Group Inc. 11,716,535 11,888,701420,200 WestJet Airlines Ltd. 4,971,799 4,983,572

58,300,238 66,398,547

Consumer Discretionary – 1.8%73,606 Gildan Activewear Inc. 1,716,278 2,247,927

198,848 Magna International Inc. 10,193,735 13,945,210365,443 Shaw Communications, Inc., Class B 7,471,846 7,005,542411,923 Thomson Reuters Corporation 15,190,903 15,694,266105,950 Tim Hortons, Inc. 3,543,922 3,610,776

38,116,684 42,503,721

Consumer Staples – 1.4%160,146 Metro Inc. 6,394,408 6,695,704301,149 Saputo Inc. 7,022,679 9,133,849510,613 Shoppers Drug Mart Corporation 20,116,150 16,804,274

33,533,237 32,633,827

Financials – 15.7%602,173 Bank of Montreal 32,523,511 34,769,469972,969 Bank of Nova Scotia, The 45,888,211 47,714,404442,060 Canadian Imperial Bank of Commerce 28,367,223 29,237,848257,984 First Capital Realty Inc. 3,456,359 3,508,582

Numberof Shares/Numberof Contracts Issuer

AverageCost ($)

FairValue ($)


517,230 Genworth MI Canada Inc. 14,495,091 11,994,564403,088 Great-West Lifeco Inc. 10,300,823 9,698,297294,852 Intact Financial Corporation 9,019,569 13,238,855

1,214,307 Manulife Financial Corporation 27,230,447 18,761,0434,000 Manulife Financial Corporation, Call Options $20.00

Jul. 16, 2010 125,683 8,000(4,000) Manulife Financial Corporation, Written Put Options $17.00

Jul. 16, 2010 (150,250) (584,000)191,757 National Bank of Canada 10,978,882 10,441,169668,780 Power Corporation of Canada 19,024,896 17,060,578

1,439,420 Royal Bank of Canada 69,585,450 72,978,594(1,500) Royal Bank of Canada, Writte Put Options $50.00 Jul. 16, 2010 (81,000) (103,500)(1,500) Royal Bank of Canada, Written Call Options $56.00

Jul. 16, 2010 (67,500) (22,500)631,553 Sun Life Financial Inc. 21,819,888 17,658,222

1,109,820 Toronto-Dominion Bank, The 68,874,626 76,555,384

361,391,909 362,915,009

Information Technology – 1.7%726,491 Research In Motion Limited 50,908,562 38,017,274

Telecommunication Services – 1.7%555,190 BCE Inc. 16,915,711 17,244,201319,114 Rogers Communications, Inc., Class B 10,073,202 11,098,785246,166 TELUS Corporation 8,580,949 9,888,488

35,569,862 38,231,474

Utilities – 0.3%131,495 Emera Inc. 3,050,043 3,230,832145,300 Fortis, Inc. 3,698,598 3,947,801

6,748,641 7,178,633

TOTAL CANADIAN EQUITIES 1,102,923,391 1,120,144,980


91,110 Anadarko Petroleum Corporation 6,368,473 3,493,23676,215 Chevron Corporation 5,890,137 5,497,36949,660 Concho Resources Inc. 2,599,990 2,921,76766,408 Exxon Mobil Corporation 5,214,179 4,022,972

157,380 Halliburton Company 5,024,223 4,109,20458,458 Hess Corporation 3,606,105 3,129,78042,200 Southwestern Energy Company 1,921,209 1,733,779

30,624,316 24,908,107

Materials – 0.3%53,644 Dow Chemical Company, The 1,599,224 1,353,29543,046 E.I. du Pont de Nemours and Company 1,551,419 1,583,58013,621 Eastman Chemical Company 856,821 773,00417,796 Freeport-McMoRan Copper & Gold Inc., Class B 1,063,436 1,118,95727,466 International Flavors & Fragrances Inc. 1,205,889 1,239,14719,431 Monsanto Company 1,596,751 954,75911,078 Mosaic Company, The 634,488 459,261

8,508,028 7,482,003

Industrials – 1.1%28,687 3M Co. 2,092,487 2,408,762

314,641 General Electric Company 4,735,354 4,815,404100,685 Honeywell International Inc. 3,917,573 4,174,104

75,066 Illinois Tool Works Inc. 3,892,986 3,295,63983,300 Norfolk Southern Corporation 4,773,721 4,698,99747,865 Northrop Grumman Corporation 2,857,006 2,771,35936,795 United Technologies Corporation 2,538,819 2,537,789

24,807,946 24,702,054


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AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Consumer Discretionary – 1.2%

76,780 Big Lots, Inc. 2,854,375 2,620,442102,600 D.R. Horton, Inc. 1,362,817 1,072,649

67,200 Family Dollar Stores, Inc. 2,689,558 2,693,718144,200 GameStop Corporation 2,886,355 2,878,632108,950 Home Depot Inc., The 3,650,363 3,247,932103,430 Johnson Controls, Inc. 3,236,989 2,953,571119,270 Limited Brands, Inc. 2,674,941 2,797,026118,990 Macy’s, Inc. 2,569,806 2,262,740138,500 Mattel, Inc. 3,207,481 3,116,894

16,619 McDonald’s Corporation 1,096,750 1,163,90491,460 Viacom Inc., Class B 3,144,236 3,050,450

29,373,671 27,857,958

Consumer Staples – 1.2%49,970 Clorox Company, The 3,294,161 3,303,52151,690 Hershey Company, The 2,211,400 2,633,84070,690 PepsiCo, Inc. 4,567,325 4,579,34473,030 Procter & Gamble Company, The 4,670,642 4,652,483

105,190 Sysco Corporation 3,151,006 3,196,255189,030 Tyson Foods, Inc. 3,529,741 3,291,062

55,800 Wal-Mart Stores, Inc. 2,862,830 2,851,57160,510 Whole Foods Markets, Inc. 2,209,175 2,316,788

26,496,280 26,824,864

Health Care – 1.3%76,270 AmerisourceBergen Corporation 2,038,817 2,575,45673,562 Johnson & Johnson 4,741,123 4,619,09130,700 McKesson Corporation 1,979,761 2,192,50792,110 Medtronic, Inc. 4,182,637 3,553,129

123,138 Merck & Co., Inc. 4,490,797 4,575,849244,506 Pfizer Inc. 4,359,252 3,705,621

92,320 UnitedHealth Group Incorporated 2,907,983 2,786,53795,100 WellPoint Inc. 5,724,264 4,948,942

30,424,634 28,957,132

Financials – 1.9%88,101 Aflac, Inc. 4,329,956 3,997,223

100,093 American Express Company 4,503,527 4,221,950257,257 Bank of America Corporation 4,457,399 3,928,966

30,263 Goldman Sachs Group, Inc., The 4,542,616 4,219,922106,162 JPMorgan Chase & Co. 4,479,299 4,131,314147,760 Lincoln National Corporation 4,233,408 3,810,880100,344 MetLife, Inc. 4,575,767 4,027,634

64,467 PNC Financial Services Group, Inc., The 4,498,382 3,873,16268,853 Prudential Financial, Inc. 3,835,713 3,928,703

163,654 U.S. Bancorp 4,508,829 3,890,100130,845 Wells Fargo & Company 3,772,999 3,556,924

47,737,895 43,586,778

Information Technology – 2.1%118,935 Accenture PLC 5,081,394 4,885,158

39,520 Apple Inc. 8,050,394 10,570,050183,463 Broadcom Corporation 6,234,837 6,431,205245,078 Cisco Systems, Inc. 6,358,502 5,551,887275,002 EMC Corporation 5,289,472 5,346,489219,857 Intel Corporation 4,814,035 4,545,621324,402 Microsoft Corporation 9,176,312 7,935,385

37,105 Rackspace Hosting, Inc. 636,692 723,750155,730 Symantec Corporation 2,752,174 2,298,891

48,393,812 48,288,436


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Telecommunication Services – 0.1%

29,648 American Tower Corporation 1,280,310 1,401,28447,033 Verizon Communications Inc. 1,565,515 1,401,111

2,845,825 2,802,395

Utilities – 0.2%36,690 Integrys Energy Group, Inc. 1,481,763 1,706,41241,764 PG&E Corporation 1,840,389 1,824,24636,207 Questar Corporation 1,622,939 1,751,337

4,945,091 5,281,995


TOTAL EQUITIES 1,357,080,889 1,360,836,702

BOND AND DEBENTURE INSTRUMENTS – 36.2%Federal Bonds - 9.0%




206,708,076 208,076,801







4.50% due Dec. 1, 2018 20,725,000 20,982,896

271,387,392 279,134,131


4.60% due Apr. 23, 2018 20,530,033 21,782,254







5.19% due Jun. 12, 2022 10,312,095 10,852,040

65,602,571 66,654,283


5.45% due Sep. 17, 2014 9,195,531 9,325,9655,000,000 Bayerische Motoren Werke AG

3.22% due Mar. 28, 2013 4,999,450 5,048,87610,000,000 Brookfield Renewable Power Inc.

8.75% due Feb. 3, 2012 10,000,000 10,844,891


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10,000,000 Canadian Natural Resources Limited4.50% due Jan. 23, 2013 9,824,100 10,480,777

14,000,000 Caterpillar Financial Services Limited4.94% due Jun. 1, 2012 13,971,228 14,736,239

8,000,000 CIBC Capital Trust (callable)9.98% due Jun. 30, 2108-(2019) 10,551,730 10,702,424

10,100,000 Citigroup Inc.* (callable)4.65% due Oct. 11, 2022-(2017) 9,870,698 9,037,348

8,000,000 CU Inc.4.80% due Nov. 22, 2021 8,021,547 8,260,033

11,000,000 EnCana Corporation4.30% due Mar. 12, 2012 10,945,830 11,399,958

5,000,000 EnCana Corporation5.80% due Jan. 18, 2018 4,986,900 5,503,480

5,000,000 Finning International Inc.6.02% due Jun. 1, 2018 5,012,113 5,525,444



10,100,000 Great-West Lifeco Inc.6.67% due Mar. 21, 2033 10,519,771 11,582,821

10,205,000 Greater Toronto Airports Authority7.10% due Jun. 4, 2031 10,645,906 12,370,102







AverageCost ($)

FairValue ($)







248,184,038 261,308,281




8,980,000 Canadian Wheat Board, The Commercial Paper(U.S.) 0.13% to 0.17% due from

Jul. 7, 2010 to Sep. 10, 2010 9,438,687 9,548,38431,210,000 Export Development Canada Commercial Paper

(U.S.) 0.14% to 0.21% due fromJul. 22, 2010 to Oct. 14, 2010 32,846,281 33,181,909

940,000 Province of British Columbia Promissory Note(U.S.) 0.21% due Jul. 26, 2010 966,899 999,589

104,382,872 104,873,975


Currency Forward Contracts – (0.3)% (6,978,018)Futures Contracts – 0.0% (100,400)OTHER ASSETS, LESS LIABILITIES – 0.5% 12,542,926

NET ASSETS – 100.0% 2,308,130,935



Number of Contracts Contract IssuerContractual

Value Canadian ($)Fair Value


(Depreciation) ($)

(502) Canada 10 Year Bond Future – Sep. 2010 (60,807,922) (62,162,660) (1,354,738)

(1,354,738)


With respect to the above futures contracts, $1,500,000 of the October 14, 2010 Government of Canada Treasury Bill is held on margin.



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June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 155,604,719 U.S. Dollar 149,893,766 159,690,797 (4,086,078)Sep. 30, 2010 Canadian Dollar 112,812,126 U.S. Dollar 108,618,371 115,717,649 (2,905,522)Sep. 30, 2010 U.S. Dollar 6,020,130 Canadian Dollar 6,400,000 6,389,108 13,582

(6,978,018)





Canadian Equities 48.6 43.7United States Equities 10.5 17.8Bond and Debenture Instruments 36.2 34.9Money Market Instruments 4.5 3.5Currency Forward Contracts (0.3) 0.1Futures Contracts 0.0 0.0


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Less than 1 year $ – $ –1-3 years 231,060,916 196,908,0263-5 years 28,074,218 30,450,6145-10 years 323,879,866 342,140,395H 10 years 253,940,750 220,462,011

Total $836,955,750 $789,961,046

* Excludes cash, money market instruments and preferred shares as applicable.

As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$13,723,991, 0.6% of total net assets (December 31, 2009 – $12,549,891, 0.6%of total net assets). In practice, actual results may differ from this sensitivityanalysis and the difference could be material.

Currency risk (note 3)The tables below indicate the currencies to which the Fund had significantexposure, net of the impact of foreign currency forward contracts, if any, basedon the fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

U.S. Dollar 15,463,192 0.7 123,425,077 5.4European Euro – – 24,877,935 1.1British Pound – – 14,078,770 0.6Japanese Yen – – 10,099,097 0.4Swiss Franc – – 4,608,419 0.2Australian Dollar – – 3,673,489 0.2Hong Kong Dollar – – 2,565,759 0.1Danish Krone – – 1,146,121 0.1Swedish Krona – – 682,812 0.0Singapore Dollar – – 438,951 0.0Norwegian Krone – – 429,981 0.0

Total 15,463,192 0.7 186,026,411 8.1



BenchmarkImpact on


Net Assets (%)

June 30, 2010

DEX Universe Bond Index – 45%,S&P/TSX Capped Composite Index TR – 45%,S&P/TSX 500 Composite Index TR – 10%


BenchmarkImpact on


Net Assets (%)

December 31, 2009

S&P/TSX Composite Index – 55%,DEX Universe Bond Index – 45%



Percentage ofBond



Percentage ofBond



June 30, 2010 December 31, 2009

AAA 36.4 13.2 31.7 11.1AA 38.0 13.8 35.4 12.3A 23.0 8.3 30.2 10.5BBB 2.6 0.9 2.7 1.0

Total 100.0 36.2 100.0 34.9

Liquidity risk (note 3)The table below summarizes a maturity analysis cash flows associated with thematurities of the Fund’s financial liabilities:


June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $ 8,471,115 $15,139,477Futures Contracts 100,400 118,291Currency Forward Contracts 6,991,600 78,351

$15,563,115 $15,336,119



Equities $ 1,361,538,702 $ – $ – $ 1,361,538,702Options (Calls/Written Puts) (679,500) – – (679,500)Bond and Debenture Instruments – 836,955,750 – 836,955,750Money Market Instruments – 104,873,975 – 104,873,975

1,360,859,202 941,829,725 – 2,302,688,927

Options (Written Calls) (22,500) – – (22,500)Currency Forward Contracts – (6,978,018) – (6,978,018)Futures Contracts (Short) (1,354,738) – – (1,354,738)

(1,377,238) (6,978,018) – (8,355,256)

$1,359,481,964 $934,851,707 $ – $2,294,333,671


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S U P P L E M E N TA R Y S C H E D U L E S


Equities $ 1,331,948,157 $ 65,212,988 $ – $ 1,397,161,145Rights – – – –Bond and Debenture Instruments – 789,961,046 – 789,961,046Money Market Instruments – 78,414,851 – 78,414,851Currency Forward Contracts – 3,379,641 – 3,379,641Futures Contracts (Long) (80,896) – – (80,896)

1,331,867,261 936,968,526 – 2,268,835,787

Options (Written Call) (153,987) – – (153,987)Futures Contracts (Short) 787,440 – – 787,440

633,453 – – 633,453

$1,332,500,714 $936,968,526 $ – $2,269,469,240




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Scotia Canadian Tactical Asset Allocation Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $465,929,705 $446,449,702Cash 2,674,183 1,528,166Accrued investment income 1,660,909 1,517,385Receivable for securities sold 18,527,282 1,825,520Subscriptions receivable 276,110 285,292Receivable for futures contracts 109,321 250,092Receivable for currency forward contracts 62,952 –

489,240,462 451,856,157

LIABILITIESPayable for securities purchased 28,549,517 3,714,273Distributions payable 7,588 341Redemptions payable 275,810 169,658Accrued expenses 770,830 386,127Payable for currency forward contracts – 283,579

29,603,745 4,553,978

Net Assets $459,636,717 $447,302,179

NET ASSETS PER CLASSClass A Units $458,646,921 $446,701,590Advisor Class Units $ 962,103 $ 578,575Class F Units $ 27,693 $ 22,014


NET ASSET PER UNITClass A Units $ 16.36 $ 16.75Advisor Class Units $ 16.14 $ 16.54Class F Units $ 16.50 $ 16.95


2010 2009INVESTMENT INCOMEDividends $ 4,034,409 $ 3,763,034Interest 3,139,302 3,326,566Capital gains distributions received 575 45,295Securities lending 29,485 27,507Foreign withholding taxes/Tax reclaims (215,844) (182,459)

6,987,927 6,979,943

EXPENSESManagement fees (note 5) 4,026,282 3,147,314Audit fees 11,037 11,691Independent Review Committee fees 1,867 1,919Custodian fees 85,752 67,193Filing fees 23,187 22,923Legal fees 5,842 6,697Unitholder reporting 34,157 43,639Unitholder administration, service fees and GST 441,176 415,132Overdraft charges 820 6,491


4,623,273 3,663,361


Net realized gain (loss) on investments sold 15,309,443 (31,734,994)Net realized gain (loss) on futures 329,044 360,820Net realized gain (loss) on currency forwards 114,846 502,396Net realized gain (loss) on foreign exchange (46,226) (30,312)Transaction costs (341,141) (351,615)Change in unrealized appreciation (depreciation) of investments (25,972,967) 61,961,459Change in unrealized appreciation (depreciation) of currency forwards 346,535 (811,132)Change in unrealized appreciation (depreciation) of bond futures – 138Change in unrealized appreciation (depreciation) of currency futures (514,556) 94,756


Increase (decrease) in Net Assets from operations $ (8,410,368) $ 33,308,098

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (8,389,592) $ 33,259,552Advisor Class Units $ (20,212) $ 46,920Class F Units $ (564) $ 1,626

INCREASE (DECREASE) FROM OPERATIONS PER UNITClass A Units $ (0.31) $ 1.28Advisor Class Units $ (0.45) $ 1.47Class F Units $ (0.43) $ 1.31


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $446,701,590 $358,070,624Advisor Class Units 578,575 401,975Class F Units 22,014 17,363

447,302,179 358,489,962

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (8,389,592) 33,259,552Advisor Class Units (20,212) 46,920Class F Units (564) 1,626

(8,410,368) 33,308,098


Class A Units (2,619,691) (3,496,695)Advisor Class Units (4,779) (4,364)Class F Units (270) (258)

(2,624,740) (3,501,317)


Class A Units 49,212,958 22,904,649Advisor Class Units 436,047 72,035Class F Units 6,333 300

Reinvested distributionsClass A Units 2,608,879 3,472,639Advisor Class Units 4,005 3,671Class F Units 270 258

Payments on redemptionClass A Units (28,867,223) (17,003,327)Advisor Class Units (31,533) –Class F Units (90) –

23,369,646 9,450,225

INCREASE (DECREASE) IN NET ASSETSClass A Units 11,945,331 39,136,818Advisor Class Units 383,528 118,262Class F Units 5,679 1,926

12,334,538 39,257,006

TOTAL NET ASSETS – END OF PERIODClass A Units 458,646,921 397,207,442Advisor Class Units 962,103 520,237Class F Units 27,693 19,289

$459,636,717 $397,746,968


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As at June 30, 2010


AverageCost ($)

FairValue ($)


10,100 Angle Energy Inc. 51,627 72,01315,900 ARC Energy Trust 284,260 313,38912,200 Athabasca Oil Sands Corporation 155,031 134,32272,300 Birchcliff Energy Ltd. 520,130 698,418

9,700 Bonterra Energy Corp. 276,079 336,97817,750 Calfrac Well Services Ltd. 355,532 342,930

134,000 Calmena Energy Services, Inc. 104,227 80,40077,700 Cameco Corporation 2,052,896 1,759,128

199,980 Canadian Natural Resources Ltd. 5,582,280 7,065,29348,700 Canadian Oil Sands Trust 1,525,470 1,314,41348,576 Celtic Exploration Ltd. 313,678 529,478

134,900 Cenovus Energy Inc. 3,467,115 3,696,26055,150 Cirrus Energy Corporation 127,258 41,36346,200 Crescent Point Energy Corp. 1,597,253 1,715,40647,300 Crew Energy Inc. 811,321 711,39216,500 Enbridge Inc. 705,833 818,070

156,200 EnCana Corporation 4,656,450 5,035,88818,900 Flint Energy Services Ltd. 228,716 224,34353,700 Fort Chicago Energy Partners LP 537,595 561,16510,200 Husky Energy Inc. 286,271 257,448

9,514 Keyera Facilities Income Fund 161,607 254,4054,700 Legacy Oil & Gas Inc. 54,541 53,6747,800 Legacy Oil & Gas Inc. Subscription Receipts* 92,040 89,076

36,043 Mullen Group Limited 591,648 514,694103,900 Nexen Inc. 2,531,717 2,175,666

3,800 Niko Resources Ltd. 305,783 376,23824,300 NuVista Energy Ltd. 277,658 246,888

5,450 Pacific Rubiales Energy Corporation 39,818 130,03726,000 Penn West Energy Trust 500,648 527,80057,600 PetroBakken Energy Ltd. 1,625,008 1,215,936

207,775 Precision Drilling Corporation 1,444,572 1,464,81439,506 Progress Energy Resources Corp. 511,696 486,31938,900 Provident Energy Trust 317,450 283,19215,400 ShawCor Ltd. 425,215 413,33630,900 Storm Exploration Inc. 348,418 413,442

311,736 Suncor Energy, Inc. 9,823,212 9,766,689299,500 Talisman Energy Inc. 4,697,365 4,821,95034,700 TransCanada Corporation 1,156,249 1,235,667

9,450 Trican Well Service Ltd. 128,132 128,70925,600 Trilogy Energy Corp. 213,770 236,80021,200 Trinidad Drilling Ltd. 120,395 106,84810,700 UTS Energy Corporation 25,523 21,93528,250 Vermilion Energy Trust 856,498 947,22320,500 Vero Energy, Inc. 126,426 125,870

651,100 Western Energy Services Corp. 130,220 123,7098,000 Wild Stream Exploration Inc. 44,380 45,200

24,250 Xtreme Coil Drilling Corporation 99,881 74,448

50,288,892 51,988,662

Materials – 8.1%23,900 Agnico-Eagle Mines Limited 1,484,371 1,543,46280,900 Agrium Inc. 3,980,196 4,205,99126,000 Alamos Gold Inc. 356,062 424,58088,400 Anvil Mining Limited 224,028 246,636

186,232 Barrick Gold Corporation 7,263,317 8,998,73027,840 Breakwater Resources, Ltd. 73,697 67,93065,080 Cascades Inc. 516,489 417,163

265,442 Cathay Forest Products Corporation 238,983 95,5591,400 CCL Industries Inc., Class B 32,835 39,5504,900 Centerra Gold Inc. 36,737 57,428

18,800 Colossus Minerals Inc. 108,100 136,30013,750 Conifex Timber, Inc. 113,438 112,200


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)CANADIAN EQUITIES (cont’d)Materials (cont’d)

162,469 Consolidated Thompson Iron Mines Limited 1,070,686 1,176,27689,300 Copper Mountain Mining Corporation 222,849 190,20920,300 Detour Gold Corporation 305,891 479,68911,939 Domtar Corporation 734,217 621,18674,800 Eldorado Gold Corporation 1,118,719 1,427,18077,375 Equinox Minerals Limited 148,839 286,28811,500 Gerdau Ameristeel Corporation 100,306 133,055

7,600 IAMGOLD Corporation 93,152 142,57626,700 Inmet Mining Corporation 1,520,693 1,124,60482,747 Kinross Gold Corporation 1,563,963 1,502,68016,474 Labrador Iron Ore Royalty Income Fund 517,817 703,44079,100 Lundin Mining Corporation 212,195 238,09112,150 Major Drilling Group International Inc. 216,958 263,53454,850 Mercator Minerals Ltd. 139,156 81,72766,000 Methanex Corporation 1,206,975 1,381,38017,000 Migao Corporation 111,109 100,81040,550 Osisko Mining Corporation 260,329 464,703

6,000 Pan American Silver Corporation 159,424 160,62041,200 Potash Corporation of Saskatchewan Inc. 4,399,655 3,777,21625,800 Potash One Inc. 63,879 56,502

7,000 Quadra FNX Mining Ltd. 90,324 68,11036,700 Red Back Mining Inc. 253,431 987,23047,600 Rubicon Minerals Corporation 182,812 173,26460,900 SEMAFO Inc. 312,419 490,245

290,420 Sherritt International Corporation 1,977,288 1,661,20112,750 Silver Wheaton Corporation 171,682 271,95820,279 Sino-Forest Corporation 323,448 306,82126,000 Tahoe Resources Inc. 156,173 169,00030,528 Taseko Mines Ltd. 125,009 137,98766,900 Teck Resources Ltd., Class B 1,818,548 2,106,012

8,200 Wajax Income Fund 199,387 187,862

34,205,586 37,216,985

Industrials – 2.8%13,600 Aecon Group Inc. 168,461 140,352

4,100 AG Growth International, Inc. 117,338 143,5005,600 Air Canada, Class B 10,080 9,408

189,600 Bombardier Inc., Class B 973,919 917,66486,400 Canadian National Railway Company 4,272,268 5,271,26417,600 Canadian Pacific Railway Limited 859,606 1,004,25612,000 Cervus Equipment Corp. 116,892 127,200

7,800 Churchill Corporation, The, Subscription Receipts* 130,650 137,98218,531 Contrans Group, Inc. 91,428 166,77912,100 CVTech Group Inc. 18,507 14,03626,100 Genivar Income Fund 607,246 665,55053,550 IBI Income Fund 728,260 737,38450,000 Russel Metals Inc. 920,873 901,00035,900 SNC-Lavalin Group Inc. 1,425,918 1,529,69910,400 Toromont Industries Ltd. 257,177 238,680

3,700 Transcontinental Inc. 46,471 48,69211,000 TransForce, Inc. 91,299 101,86027,400 Westshore Terminals Income Fund 418,905 474,294

11,255,298 12,629,600

Consumer Discretionary – 2.7%2,200 Astral Media Inc. 77,223 79,046

525,900 Azure Dynamics Corporation 89,998 160,40011,900 Canadian Tire Corporation, Limited 577,076 632,48529,900 Cineplex Galaxy Income Fund 507,182 583,050

4,750 Cogeco Cable Inc. 178,538 161,88048,264 Corus Entertainment Inc., Class B 876,251 902,05411,300 Forzani Group Ltd., The 162,199 174,020

5,900 Gamehost Income Fund 64,224 49,324


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AverageCost ($)

FairValue ($)

EQUITIES (cont’d)CANADIAN EQUITIES (cont’d)Consumer Discretionary (cont’d)

32,300 Gildan Activewear Inc. 478,273 986,44273,700 Great Canadian Gaming Corporation 446,768 496,00131,155 Linamar Corporation 139,149 560,79025,100 Magna International Inc. 1,213,106 1,760,26349,800 Martinrea International Inc. 384,181 373,500

8,100 Quebecor Inc., Class B 186,429 263,49319,800 Reitmans (Canada) Ltd. 318,830 371,052

108,100 RONA inc. 1,688,255 1,697,17069,400 Thomson Reuters Corporation 2,524,897 2,644,14011,150 TVA Group Inc., Class B 113,729 126,10749,600 Yellow Pages Income Fund 397,476 295,61630,684 Zungui Haixi Cororation 99,723 78,551

10,523,507 12,395,384

Consumer Staples – 0.9%19,567 Alimentation Couche-Tard Inc., Class B 374,194 348,48816,250 Alliance Grain Traders, Inc. 316,309 487,82524,546 Cott Corporation 165,005 151,694

2,300 Empire Company Limited 118,675 121,02681,570 Maple Leaf Foods Inc. 923,742 729,23614,612 Metro Inc. 476,454 610,92823,900 Saputo Inc. 623,952 724,887

136,400 Viterra, Inc. 1,268,618 965,712

4,266,949 4,139,796

Health Care – 0.1%40,100 CML Healthcare Income Fund 586,746 398,193

Financials – 12.7%17,400 Allied Properties Real Estate Investment Trust 255,850 341,04038,750 Altus Income Fund 300,998 482,43830,500 Bank of Montreal 1,653,059 1,761,070

179,300 Bank of Nova Scotia, The 7,725,889 8,792,87221,400 Canaccord Financial Inc. 197,628 199,23437,500 Canadian Apartment Properties Real Estate Investment Trust 512,865 561,750

113,050 Canadian Imperial Bank of Commerce 7,180,263 7,477,12713,800 Canadian Western Bank 304,379 326,094

105,050 Chartwell Seniors Housing Real Estate Investment Trust 556,258 750,05747,900 Cominar Real Estate Investment Trust 826,847 816,57226,425 DundeeWealth Inc. 142,828 355,416

675 E-L Financial Corporation Limited 318,625 303,75716,034 Gluskin Sheff + Associates Inc. 214,223 272,57844,300 Guardian Capital Group Ltd. 192,674 350,41312,400 IGM Financial, Inc. 529,951 460,28817,975 Industrial Alliance Insurance and Financial Services Inc. 564,310 627,328

148,900 InnVest Real Estate Investment Trust 825,565 875,5328,400 Intact Financial Corporation 278,178 377,160

70,300 Killam Properties Inc. 580,007 591,223380,810 Manulife Financial Corporation 8,417,315 5,883,51514,600 Northern Property Real Estate Investment Trust 319,231 336,530

237,900 Royal Bank of Canada 10,350,280 12,061,53057,300 Sun Life Financial Inc. 1,972,419 1,602,108

8,900 TMX Group Inc. 339,647 247,33114,050 Tonbridge Power, Inc. Warrants $2.15 Jun. 17, 2011 – –

171,980 Toronto-Dominion Bank, The 9,724,668 11,863,18062,100 Transglobe Apartment Real Estate Ivestment Trust Units 615,376 576,288

54,899,333 58,292,431

Information Technology – 1.7%29,500 Bridgewater Systems Corp. 252,572 256,94517,600 Celestica Inc. 172,164 151,18446,050 CGI Group Inc. 681,448 729,432

2,600 Constellation Software Inc. 63,547 105,58612,932 Evertz Technologies Limited 238,726 173,28920,500 EXFO, Inc. 101,267 112,750


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)CANADIAN EQUITIES (cont’d)Information Technology (cont’d)

3,950 MacDonald, Dettwiler and Associates Ltd. 154,283 172,73426,700 Open Text Corporation 1,101,205 1,068,00047,000 Redknee Solutions Inc. 65,800 58,75085,200 Research In Motion Limited 5,951,473 4,458,51617,800 Ruggedcom, Inc. 231,752 206,48033,850 Sandvine Corporation 47,074 68,716

9,061,311 7,562,382

Telecommunication Services – 1.9%65,241 BCE Inc. 1,849,578 2,026,385

156,550 Peer 1 Network Enterprises, Inc. 180,890 176,90293,500 Rogers Communications, Inc., Class B 2,698,679 3,251,93083,900 TELUS Corporation Non-Voting 2,839,875 3,228,472

7,569,022 8,683,689

Utilities – 0.4%135,100 Algonquin Power & Utilities Corp. 478,851 552,55954,400 Brookfield Infrastructure Partners LP 857,343 910,65627,050 Northland Power Income Fund 313,785 371,397

5,000 Pacific Northern Gas Ltd. 83,328 127,15033,690 Tonbridge Power, Inc. 77,185 64,685

1,810,492 2,026,447

Index Units – 0.1%39,900 iShares CDN S&P/TSX 60 Index Fund 694,732 663,138


FOREIGN EQUITIES – 19.2%United States – 10.2%Energy – 1.0%

5,900 Anadarko Petroleum Corporation 345,606 226,2112,600 Apache Corporation 254,518 232,8041,700 Callon Petroleum Company 10,320 11,3549,400 Chesapeake Energy Corporation 234,253 209,144

12,970 Chevron Corporation 1,046,640 935,5239,100 ConocoPhillips 498,286 474,5263,100 Devon Energy Corporation 212,138 200,7211,000 Diamond Offshore Drilling, Inc. 67,092 66,0783,100 EXCO Resources, Inc. 53,705 48,136

22,300 Exxon Mobil Corporation 1,636,096 1,350,926500 FMC Technologies, Inc. 26,551 28,003600 Houston American Energy Corp. 6,355 6,292

6,700 National-Oilwell Varco Inc. 295,894 235,4352,200 Noble Corporation 89,186 72,277

800 Patriot Coal Corporation 12,479 9,9971,400 Range Resources Corporation 60,075 59,7823,700 Rowan Companies, Inc. 94,503 86,3375,200 Schlumberger Limited 351,109 305,8344,500 Williams Companies Inc., The 96,163 87,440

5,390,969 4,646,820

Materials – 0.3%1,600 CF Industries Holdings, Inc. 142,671 107,8697,000 Freeport-McMoRan Copper & Gold Inc., Class B 499,124 440,1386,900 Innophos Holdings, Inc. 166,866 191,1675,600 Newmont Mining Corporation 304,460 367,5969,600 Weyerhaeuser Company 462,251 359,394

1,575,372 1,466,164

Industrials – 1.0%2,600 3M Co. 230,301 218,3142,300 Alaska Air Group, Inc. 96,005 109,9551,200 Allegiant Travel Company 56,521 54,445

200 Alliant Techsystems Inc. 13,551 13,2013,200 Deere & Company 193,805 189,328


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EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United States (cont’d)Industrials (cont’d)

4,600 Emerson Electric Co. 226,614 213,5017,400 EnPro Industries, Inc. 177,565 221,5474,300 General Dynamics Corporation 283,053 267,810

53,600 General Electric Company 1,143,045 820,3183,400 L-3 Communications Holdings, Inc. 262,060 256,1624,200 Lockheed Martin Corporation 347,219 332,5166,300 Northrop Grumman Corporation 358,944 364,7676,000 Oshkosh Corporation 228,921 198,8419,700 Raytheon Company 527,377 499,2118,900 Southwest Airlines Co. 114,642 105,0684,700 Timken Company, The 148,877 129,765

100 Triumph Group, Inc. 7,113 7,0857,000 United Parcel Service, Inc., Class B 472,997 423,313

4,888,610 4,425,147

Consumer Discretionary – 1.0%6,200 Aaron’s, Inc. 124,489 112,5592,000 Amazon.com, Inc. 267,774 232,406

14,900 Barnes & Noble, Inc. 326,578 203,94925,000 Comcast Corporation 425,018 461,84511,300 DIRECTV 412,649 407,533

5,700 DISH Network Corp. 126,292 109,9087,000 Domino’s Pizza, Inc. 99,025 84,127

18,700 Ford Motor Company 168,839 200,07711,500 Home Depot Inc., The 387,682 342,82914,500 McClatchy Company 64,814 55,980

6,200 McDonald’s Corporation 444,376 434,214100 NVR Inc. 67,203 69,641

7,500 Rent-A-Center, Inc. 156,301 161,60630,800 Saks Inc. 283,602 247,972

1,300 Sotheby’s 31,249 31,6206,000 Starbucks Corporation 159,388 155,0656,200 Time Warner Cable Inc. 324,187 343,283

21,233 Time Warner Inc. 627,709 652,6281,200 Whirlpool Corporation 131,701 112,081

4,628,876 4,419,323

Consumer Staples – 1.0%30,600 Altria Group, Inc. 639,833 651,54219,200 Central Garden & Pet Company 191,131 182,964

500 China Sky One Medical, Inc. 5,847 5,94510,900 Coca-Cola Company, The 593,306 580,676

7,500 Constellation Brands, Inc. 125,217 124,5952,500 Elizabeth Arden, Inc. 46,024 38,6073,200 Fresh Del Monte Produce Inc. 70,119 68,8844,100 Kimberly-Clark Corporation 264,303 264,2494,800 Lorillard, Inc. 382,263 367,4604,700 Pantry, Inc., The 81,849 70,5317,900 PepsiCo, Inc. 526,721 511,767

12,300 Procter & Gamble Company, The 785,980 783,58917,200 SUPERVALU Inc. 277,747 198,11312,500 Tyson Foods, Inc. 227,710 217,628

6,600 Wal-Mart Stores, Inc. 358,334 337,283

4,576,384 4,403,833

Health Care – 1.3%12,900 Abbott Laboratories 681,577 641,399

7,700 Amgen Inc. 461,816 430,7585,600 Baxter International Inc. 251,701 241,8682,200 Becton, Dickinson and Company 156,662 158,0544,800 Cardinal Health, Inc. 161,463 171,427

11,100 CareFusion Corporation 300,867 267,9821,300 Cogdell Spencer Inc. 9,821 9,319


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United States (cont’d)Health Care (cont’d)

4,900 Gilead Sciences, Inc. 180,393 178,59410,700 Healthspring, Inc. 169,920 176,503

4,200 Impax Laboratories, Inc. 86,779 85,1399,300 Johnson & Johnson 607,884 583,9647,100 Kindred Healthcare, Inc. 119,569 96,957

11,600 Medtronic, Inc. 483,560 447,4687,000 Merck & Co., Inc. 255,367 260,1222,000 Mylan Inc. 37,384 36,246

11,400 Omnicare, Inc. 277,575 286,98570,900 Pfizer Inc. 1,387,552 1,074,528

200 RehabCare Group, Inc. 4,830 4,6336,300 Thermo Fisher Scientific, Inc. 318,940 328,4517,600 UnitedHealth Group Incorporated 234,038 229,394

6,187,698 5,709,791

Financials – 1.9%2,700 Aflac, Inc. 115,425 122,5014,900 Allied World Assurance Company Holdings, Ltd. 237,044 236,440

46,300 American Capital Ltd. 260,973 237,3486,400 American Financial Group, Inc. 172,551 185,9593,200 American International Group, Inc. 118,345 117,1434,600 Assurant, Inc. 155,000 169,763

39,356 Bank of America Corporation 801,529 601,06611,100 Bank of New York Mellon Corporation, The 338,087 291,120

9,000 Berkshire Hathaway Inc., Class B 744,634 762,0217,900 BRE Properties, Inc. 316,980 309,7833,000 Capital One Financial Corporation 122,346 128,423

130,100 Citigroup Inc. 741,086 518,87823,000 CNO Financial Group, Inc. 130,250 121,085

5,100 Comerica Incorporated 198,250 199,55210,000 Equity Residential Real Estate Investment Trust 468,995 442,861

6,400 Extra Space Storage Inc 102,921 94,6136,700 Host Hotels & Resorts Inc. 105,257 96,055

18,200 Huntington Bancshares Incorporated 126,001 107,23510,950 iShares iBoxx $ High Yield Corporate Bond Fund ETF 1,020,753 985,82015,400 JPMorgan Chase & Co. 662,576 599,294

8,700 Macerich Company, The 380,996 344,8543,700 Mid-America Apartment Communities, Inc. 207,364 202,4622,500 National Financial Partners Corporation 26,866 25,9778,500 PHH Corporation 163,423 171,8533,900 PNC Financial Services Group, Inc., The 257,647 234,3114,700 Rayonier Inc. 211,139 220,0414,000 Safety Insurance Group, Inc. 177,151 157,4901,200 SCBT Financial Corporation 47,179 44,6434,500 St. Joe Company, The 126,366 110,843

600 Student Loan Corporation, The 16,540 15,3663,800 Travelers Companies, Inc., The 192,497 198,962

32,300 Wells Fargo & Company 965,214 878,052

9,711,385 8,931,814

Information Technology – 1.9%17,200 Amkor Technology, Inc. 158,451 100,612

3,200 Apple Inc. 772,660 855,87521,700 Cisco Systems, Inc. 514,426 491,582

9,100 Computer Sciences Corporation 464,647 437,45850,800 EarthLink, Inc. 448,073 430,064

800 Google Inc. 419,284 378,52112,300 Hewlett-Packard Company 610,590 565,65040,000 Intel Corporation 848,417 827,014

5,600 International Business Machines Corporation 725,663 734,8342,100 JDA Software Group, Inc. 51,965 49,0914,100 Lexmark International, Inc. 127,652 143,985

63,800 Microsoft Corporation 1,774,487 1,560,649


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EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United States (cont’d)Information Technology (cont’d)

16,700 Oracle Corporation 411,012 380,97817,700 Seagate Technology 318,898 245,47521,300 Symantec Corporation 371,093 314,431

9,800 Tellabs, Inc. 74,212 66,6017,400 Texas Instruments Incorporated 190,537 183,062

27,800 United Online, Inc. 259,824 170,30416,700 Vishay Intertechnology, Inc. 119,846 137,11710,200 Western Digital Corporation 375,516 327,07333,900 Xerox Corporation 336,692 289,155

9,373,945 8,689,531

Telecommunication Services – 0.3%39,925 AT&T Inc. 1,147,974 1,025,460

7,800 USA Mobility, Inc. 88,917 107,18011,900 Verizon Communications Inc. 388,633 354,500

1,625,524 1,487,140

Utilities – 0.3%6,100 DTE Energy Company 244,826 295,9019,500 Exelon Corporation 387,641 383,536

14,000 FirstEnergy Corp. 578,715 524,11620,500 NiSource Inc. 303,118 315,921

1,514,300 1,519,474

Mutual Funds – 0.2%24,550 SPDR Barclays Capital High Yield Bond ETF 1,021,028 987,744

TOTAL UNITED STATES 50,494,091 46,686,781

Austria – 0.2%66,700 Andean Resources Limited 125,427 200,76749,100 Centamin Egypt Ltd. 62,385 125,20546,800 Mirabela Nickel Limited 55,640 82,836

9,732 Voestalpine AG 346,236 283,435

589,688 692,243

Belgium – 0.1%851 Mobistar SA 45,154 47,890

14,548 Umicore 492,527 447,928

537,681 495,818

Bermuda – 0.0%1,100 Frontline Limited 34,735 33,3192,700 RenaissanceRe Holdings Ltd. 153,825 161,584

188,560 194,903

Denmark – 0.3%2,910 Coloplast A/S 323,491 307,368

14,958 H Lundbeck A/S 282,217 216,7953,820 Novo Nordisk AS, Class B 292,260 327,8894,774 William Demant Holding A/S 358,929 370,960

1,256,897 1,223,012

Finland – 0.6%8,750 Kesko Oyj 301,905 301,499

33,688 Nokia Corporation ADR 343,021 291,646122,931 Nokia Oyj 1,653,116 1,068,081

5,850 Nokian Renkaat Oyj 145,773 152,45012,846 Orion Corp. OYJ, Class B 306,730 255,76014,384 Sampo Oyj, Series A 369,118 320,24220,810 Sanoma Oyj 451,589 382,025

3,571,252 2,771,703

France – 1.0%1,754 bioMerieux 185,824 191,5044,935 BNP Paribas 303,151 280,385


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)France (cont’d)

13,882 Compagnie Generale des Etablissements Michelin, Class B 1,090,141 1,029,67823,645 Credit Agricole SA 369,804 257,548

777 Ipsen SA 27,590 25,20634,428 Natixis 164,785 157,594

1,687 PSA Peugeot Citroen SA 48,473 45,37514,196 Renault SA 574,569 555,924

5,443 Sanofi-Aventis 169,482 174,01420,541 Sanofi-Aventis 1,442,490 1,318,049

5,408 SCOR SE 117,196 109,9898,392 Societe Television Francaise 1 119,060 116,7046,682 Valeo SA 124,659 191,541

988 Vallourec SA 180,057 179,501

4,917,281 4,633,012

Germany – 0.7%2,959 BASF SE 187,063 172,1197,731 Celesio AG 190,297 179,929

12,224 Deutsche Telekom AG 152,553 153,633514 Deutsche Telekom AG ADR 6,255 6,380

1,503 Hannover Rueckversicherung AG 70,312 68,8943,554 HeidelbergCement AG 200,322 180,7233,208 Hochtief AG 215,525 202,854

32,880 Infineon Technologies AG 189,673 202,9051,911 MAN SE 167,936 167,4932,806 Muenchener Rueckversicherungs-Gesellschaft AG 437,728 373,6171,303 Porsche Automobile Holdings SE 59,033 59,147

10,740 Salzgitter AG 1,056,782 683,87415,801 Suedzucker AG 291,591 302,227

9,306 ThyssenKrupp AG 353,216 244,1459,844 United Internet AG 120,328 115,714

3,698,614 3,113,654

Greece – 0.1%23,464 Alpha Bank A.E. 134,290 122,03336,792 Bank of Cyprus Public Co Ltd. 157,870 156,88814,069 National Bank of Greece SA 180,883 163,121

4,353 OPAP SA 65,376 57,614

538,419 499,656

Hong Kong – 0.2%4,800 ASM Pacific Technology Limited 42,862 39,6953,000 Chinese Estates Holdings Limited 5,587 5,622

951 Esprit Holdings Limited 7,216 5,45426,900 Hong Kong Exchanges & Clearing Limited 522,217 446,11614,000 Link Real Estate Investment Trust, The 34,513 36,839

1,115,977 Solomon Systech International Limited 242,339 89,20738,000 Yue Yuen Industrial (Holdings) Limited 124,079 125,558

978,813 748,491

Ireland – 0.0%44,974 Anglo Irish Bank Corporation Ltd. PLC 85,826 –

2,957 Kerry Group PLC 88,923 87,160

174,749 87,160

Italy – 0.1%34,290 Tenaris SA 766,217 633,233

Japan – 0.9%19,000 Alps Electric Co., Ltd. 104,099 173,45614,900 Astellas Pharma Inc. 660,697 529,991

7,900 Brother Industries, Ltd. 89,695 87,4835,000 Chugai Pharmaceutical Co., Ltd. 99,536 93,913

29,000 Fuji Heavy Industries Ltd. 171,493 164,6662,700 FUJIFILM Holdings Corporation 83,968 82,6095,900 Kao Corporation 143,249 147,518

38 KDDI Corporation 192,236 191,986


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EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)Japan (cont’d)

13,000 Koito Manufacturing Co. Ltd. 183,588 203,04714,500 Konica Minolta Holdings, Inc. 160,933 148,414

6,000 Kyowa Hakko Kogyo Co. Ltd. 60,904 60,6162,800 Mitsumi Electric Company, Ltd. 50,683 50,675

14,400 Nippon Telegraph and Telephone Corporation 611,314 625,3375,217 Nippon Telegraph and Telephone Corporation ADR 109,617 112,857

123 NTT DoCoMo Inc. 199,774 197,836488 NTT DoCoMo Inc. ADR 7,833 7,827

5,200 Ono Pharmaceutical Co., Ltd. 253,400 224,6477,100 Santen Pharmaceutical Co., Ltd. 224,706 271,745

21,600 Sumitomo Rubber Industries, Ltd. 191,123 202,3189,400 Takeda Pharmaceutical Company Limited 413,977 427,882

4,012,825 4,004,823

Netherlands – 1.1%14,623 Akzo Nobel NV 939,780 804,887

1,277 Heineken Holding NV 51,542 49,5744,775 Heineken NV 219,474 215,3787,339 Koninklijke (Royal) KPN NV 100,075 99,715

56,338 Koninklijke Ahold NV 750,355 742,4095,410 Koninklijke Boskalis Westminster NV 201,230 224,149

16,777 Koninklijke DSM NV 761,297 709,246327 Koninklijke Philips Electronic NV -NY Shares 9,986 10,353

39,514 Koninklijke Philips Electronics NV 1,155,069 1,253,27525,619 Unilever NV 773,661 743,266

6,371 Unilever NV NY Shares 185,338 185,116

5,147,807 5,037,368

Norway – 0.0%1,968 Telenor ASA 24,872 26,301

Portugal – 0.1%47,573 Jeronimo Martins, SGPS, SA 453,772 461,550

Russia – 0.0%1,060 Mining and Metallurgical Company Norilsk Nickel 6,685 16,1266,379 Mobile TeleSystems 131,679 129,9212,272 VimpelCom Ltd. ADR 42,882 39,097

181,246 185,144

Singapore – 0.2%27,900 Flextronics International Ltd. 107,212 166,16913,000 Fraser & Neave Limited 41,510 50,53051,000 SembCorp Industries Limited 132,149 156,74673,000 SembCorp Marine Limited 163,797 212,25811,000 United Overseas Bank Limited 145,398 162,524

590,066 748,227

Spain – 0.0%15,353 Sacyr Vallehermoso SA 304,489 80,672

Sweden – 0.8%6,244 Alfa Laval AB 89,742 85,865

14,814 Atlas Copco AB 218,697 230,89024,141 Atlas Copco AB, Class B 324,516 340,40935,817 Electrolux AB, Class B 393,867 870,44217,842 Hennes & Mauritz AB, Class B 481,600 522,322

188 Holmen AB, B Shares 5,006 4,749888 Skanska AB, Class B 14,184 13,647

32,327 Tele2 AB, Class B 485,014 514,55596,653 Telefonaktiebolaget LM Ericsson, Class B 966,430 1,145,670

2,979,056 3,728,549

Switzerland – 0.3%1,533 Actelion Ltd. 60,239 60,823

66 Givaudan SA 53,114 59,35313,158 Logitech International SA 208,176 190,137


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)Switzerland (cont’d)

10,516 Nestle SA 507,932 539,8421,496 Novartis AG 76,123 77,2221,105 Novartis AG ADR 56,075 56,7401,260 Roche Holdings AG 195,572 184,0922,084 Swiss Life Holding AG 227,435 212,218

431 Swisscom AG 143,928 155,353

1,528,594 1,535,780

Thailand – 0.0%117,800 CP All Public Company Limited 66,109 110,160

Turkey – 0.4%4,975 Akbank T.A.S. 22,726 25,271

62,799 Arcelik A.S 87,508 279,2475,794 BIM Birlesik Magazalar AS 114,678 170,322

27,822 Eregli Demir ve Celik Fabrikalari TAS (Erdemir) 76,132 74,9099,747 Ford Otomotiv Sanayi AS 37,174 66,722

18,585 Tupras-Turkiye Petrol Rafinerileri AS 203,009 358,65816,764 Turkiye Garanti Bankasi AS 78,114 73,89128,992 Turkiye Halk Bankasi AS 127,669 227,19862,537 Turkiye Is Bankasi, Class C 173,662 205,989

119,188 Turkiye Vakiflar Bankasi T.A.O. 234,444 287,912

1,155,116 1,770,119

United Kingdom – 1.9%31,783 AstraZeneca PLC 1,552,747 1,588,998

398 AstraZeneca PLC ADR 17,951 19,95097,832 BAE Systems PLC 728,689 483,59360,992 BP PLC 639,909 311,680

1,721 British Sky Broadcasting Group PLC 15,030 19,099251,605 BT Group PLC 565,999 511,23545,655 Cobham PLC 160,043 153,11666,506 Compass Group PLC 402,998 536,883

6,846 CSR PLC 47,116 40,45936,929 Enterprise Inns PLC 127,182 50,93066,301 GKN PLC 360,431 121,03682,912 GlaxoSmithKline PLC 1,837,498 1,495,077

2,806 GlaxoSmithKline PLC ADR 98,523 101,49641,773 Home Retail Group PLC 155,312 140,569

7,513 IMI PLC 34,898 81,23610,685 Inmarsat PLC 124,248 120,457

7,982 InterContinental Hotels Group PLC 91,367 132,280106,182 Investec PLC 873,472 759,86855,685 Kingfisher PLC 200,247 183,87439,622 Man Group PLC 144,194 139,46736,559 Melrose PLC 112,079 121,240

3,262 NEXT PLC 64,496 102,70954,523 Punch Taverns PLC 308,737 49,133

4,304,700 Rolls-Royce Group C Shares Restricted* – 6,84347,830 Rolls-Royce Group PLC 332,128 423,805

1,980 Royal Dutch Shell PLC, Class B 75,032 51,00714,394 Shire PLC 315,920 311,305

3,704 Smith & Nephew PLC ADR 186,412 185,15113,270 Tomkins PLC 50,553 47,434

3,234 Trinity Mirror PLC 20,256 3,290118,749 Vodafone Group PLC 260,541 261,82710,521 Vodafone Group PLC ADR 229,497 231,177

10,133,505 8,786,224

TOTAL FOREIGN EQUITIES 43,795,628 41,567,802

TOTAL EQUITIES 279,451,587 284,251,290


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7,694,000 Canada Housing Trust No. 13.75% due Mar. 15, 2020 7,741,703 7,814,694

483,000 Canada Housing Trust No. 13.75% due Mar. 15, 2020 479,426 490,312

2,568,000 Government of Canada3.50% due Jun. 1, 2013 2,688,673 2,687,902


537,000 United States Treasury Notes3.63% due Feb. 15, 2020 537,285 601,734

30,158,416 30,440,629

Provincial Bonds – 9.1%765,000 Alberta Capital Finance Authority

3.05% due Jun. 15, 2015 763,241 772,7741,705,000 Hydro-Quebec

Stripped Coupon due Aug. 15, 2015 1,397,827 1,446,8391,376,000 Province of Alberta


4.70% due Jun. 18, 2037 2,113,563 2,169,1482,570,000 Province of British Columbia

4.95% due Jun. 18, 2040 2,638,342 2,755,8591,430,000 Province of New Brunswick

4.50% due Jun. 2, 2020 1,442,441 1,489,24862,000 Province of New Brunswick

4.65% due Sep. 26, 2035 63,164 61,69194,000 Province of Newfoundland and Labrador

4.50% due Apr. 17, 2037 93,418 92,404191,000 Province of Nova Scotia

4.70% due Jun. 1, 2041 186,735 192,6024,000,000 Province of Ontario



Stripped Coupon 2,669,960 2,839,4092,250,000 Province of Ontario

4.20% due Jun. 2, 2020 2,213,515 2,291,614540,000 Province of Ontario

Stripped Coupon 279,030 254,9123,457,000 Province of Ontario


Stripped Coupon due Dec. 01, 2015 5,565,591 5,771,8483,009,000 Province of Quebec

4.50% due Dec. 1, 2019 3,007,996 3,133,5363,515,000 Province of Quebec

6.00% due Oct. 1, 2029 4,071,762 4,130,969

40,789,871 41,943,214

Mortgage-Backed Securities – 1.0%1,660,000 Claregold Trust*

5.07% due May. 15, 2044 1,458,008 1,701,051418,000 Merrill Lynch Financial Assets Inc.*

4.68% due Mar. 12, 2039 410,083 425,964487,000 Merrill Lynch Financial Assets Inc.*

5.26% due May 12, 2044 486,983 500,061788,000 Real Estate Asset Liquidity Trust*

5.20% due Mar. 12, 2046 685,213 823,512901,000 Schooner Trust*

3.97% due Sep. 12, 2020 577,645 926,069155,692 Solar Trust*

6.70% due Nov. 15, 2021 166,524 158,780

3,784,456 4,535,437


AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Corporate Bonds – 15.0%

754,000 AltaLink LP*5.02% due Nov. 21, 2012 754,662 786,221

267,812 Arrow Lakes Power Corporation*5.39% due Mar. 31, 2015 272,462 288,999

1,669,000 Bank of Nova Scotia, The3.43% due Jul. 16, 2014 1,654,075 1,695,379

1,760,000 Bank of Nova Scotia, The4.10% due Jun. 8, 2017 1,759,789 1,786,275

100,000 Bell Canada6.55% due May 1, 2029 83,350 103,450

90,000 Bell Canada7.30% due Feb. 23, 2032 80,253 102,342

271,994 Brilliant Power Funding Corporation*8.93% due May 31, 2026 352,946 352,510

738,000 Brookfield Asset Management Inc.8.95% due Jun. 2, 2014 829,914 855,050

1,101,000 Brookfield Asset Management Inc.5.29% due Apr. 25, 2017 964,143 1,109,317


560,000 Brookfield Power Corporation5.84% due Nov. 5, 2036 541,310 497,838

785,000 Brookfield Power Corporation*5.25% due Nov. 5, 2018 719,690 779,704

478,000 Brookfield Renewable Power Inc.8.75% due Feb. 3, 2012 488,651 518,386

362,000 Brookfield Renewable Power Inc.*6.13% due Nov. 30, 2016 373,694 386,460

585,000 Cameco Corporation4.70% due Sep. 16, 2015 592,857 610,515


2,378,000 Canadian Imperial Bank of Commerce (callable)5.15% due Jun. 6, 2018-(2013) 2,411,873 2,519,260

1,800,000 Canadian Imperial Bank of Commerce (callable)4.11% due Apr. 30, 2020-(2015) 1,835,460 1,833,865

445,000 Canadian Pacific Railway Company6.45% due Nov. 17, 2039 454,579 481,393

2,200,000 CARDS II Trust3.05% due May 15, 2013 2,200,000 2,224,236

683,000 CDP Financial Inc.4.60% due Jul. 15, 2020 681,593 701,986

584,000 CHIP Mortgage Trust*5.61% due May 2, 2011 584,000 600,048

731,000 CIBC Capital Trust (callable)9.98% due Jun. 30, 2108-(2019) 927,563 977,934

411,000 CIBC Capital Trust10.25% due Jun. 30, 2108-(2039) 637,173 637,096

181,000 Citigroup Inc.* (callable)4.65% due Oct. 11, 2022-(2017) 161,242 161,956

108,560 Data Centres Trust Series A*7.23% due Sep. 10, 2014 119,724 111,226

820,000 DundeeWealth Inc.5.10% due Sep. 25, 2014 819,967 834,844

221,000 Enbridge Pipelines Inc.5.33% due Apr. 6, 2040 220,967 227,589

830,000 ERAC Canada Finance Ltd.*5.38% due Feb. 26, 2016 803,601 855,201


102,000 GE Capital Canada Funding Company4.55% due Jan. 17, 2017 86,914 103,172

4,398,000 GE Capital Canada Funding Company5.53% due Aug. 17, 2017 4,478,316 4,672,374


290,000 General Electric Company4.24% due Jun. 8, 2015 289,988 295,163


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AverageCost ($)

FairValue ($)


554,000 General Electric Company6.38% due Nov. 15, 2017 415,797 548,880

580,000 Golden Credit Card Trust5.42% due Apr. 15, 2013 580,000 623,813

819,000 Goldman Sachs Group Inc., The5.20% due Apr. 19, 2017 771,287 774,777

1,080,000 Goldman Sachs Group, Inc., The5.25% due Jun. 1, 2016 1,109,236 1,099,021

850,000 Great-West Lifeco Finance (Delaware) LP5.69% due Jun. 21, 2017 829,675 886,198

375,000 Great-West Lifeco Inc.6.67% due Mar. 21, 2033 421,022 430,055

167,000 Great-West Lifeco Inc.5.00% due Nov. 16, 2039 177,279 178,122

99,000 Greater Toronto Airports Authority7.10% due Jun. 4, 2031 104,694 120,004


611,000 HSBC Bank of Canada (callable)4.80% due Apr. 10, 2022-(2017) 599,554 624,304

1,792,000 HSBC Bank of Canada4.94% due Mar. 16, 2021 1,716,296 1,867,247

486,000 Hydro One Inc.7.35% due Jun. 3, 2030 604,665 618,825


218,000 Hydro One Inc.5.49% due Jul. 16, 2040 216,428 228,099

540,000 Intact Financial Corporation5.41% due Sep. 3, 2019 538,450 563,213

421,000 Intact Financial Corporation*6.40% due Nov. 23, 2039 419,401 437,150

2,675,000 Manulife Financial (Delaware) LP (callable)4.45% due Dec. 15, 2026-(2016) 2,635,093 2,693,856

416,000 Manulife Financial (Delaware) LP (callable)5.06% due Dec. 15, 2041-(2036) 370,365 368,219

1,157,000 Manulife Financial Corporation7.77% due Apr. 8, 2019 1,384,195 1,399,116

580,000 Master Credit Card Trust5.24% due May 21, 2013 580,000 621,618

1,109,000 Merrill Lynch & Co. Inc.* (callable)5.29% due May 30, 2022-(2017) 1,042,998 1,047,431

270,000 Merrill Lynch Canada Finance Company5.00% due Feb. 18, 2014 260,002 279,491


360,070 Pearson International Fuel Facilities Corporation*5.09% due Mar. 9, 2032 359,476 349,108

215,000 Real Estate Asset Liquidity Trust5.20% due Jun. 12, 2017 210,517 223,243

1,948,000 Reliance LP*7.30% due Apr. 3, 2013 1,943,636 1,996,287

580,000 Rogers Communications Inc.5.80% due May 26, 2016 578,649 630,360

1,659,000 Royal Bank of Canada4.35% due Jun. 15, 2020 1,658,403 1,699,593

2,000,000 Royal Bank of Canada4.84% due Mar. 11, 2018 2,084,000 2,100,487

425,000 Schooner Trust*5.34% due Nov. 12, 2013 443,896 446,072

408,995 Schooner Trust*5.19% due Mar. 12, 2017 417,310 423,889

298,000 Scotiabank Tier I Trust (callable)7.80% due Jun. 30, 2108-(2019) 354,709 359,000

788,000 Shaw Communications Inc.5.65% due Oct. 1, 2019 807,735 815,889

382,000 Shaw Communications Inc.6.75% due Nov. 9, 2039 391,597 387,683


AverageCost ($)

FairValue ($)


668,000 SNC-Lavalin Group Inc.*6.19% due Jul. 3, 2019 677,505 733,601

372,000 Sun Life Financial Inc. (callable)4.80% due Nov. 23, 2035-(2015) 349,141 386,965

839,000 Sun Life Financial Inc. (callable)4.95% due Jun. 1, 2036-(2016) 836,482 869,661

586,000 Sun Life Financial Inc. (callable)5.40% due May 29, 2042-(2037) 511,064 545,025

503,000 TCNZ Finance Ltd.*4.75% due Oct. 11, 2013 502,269 506,941

5,160,000 TD Capital Trust III (callable)7.24% due Dec. 31, 2049-(2018) 5,833,151 5,989,251

167,000 Terasen Gas Inc.6.05% due Feb. 15, 2038 166,885 185,716


66,307,550 68,694,178


MONEY MARKET INSTRUMENTS – 7.8%550,000 Government of Canada Treasury Bills

0.28% due Aug. 5, 2010 549,203 549,8527,850,000 Canadian Imperial Bank of Commerce Bankers’ Acceptances

0.58% to 0.99% due fromAug. 4, 2010 to Dec. 7, 2010 7,828,336 7,831,921

4,300,000 National Bank of Canada Bankers’ Acceptances0.43% to 0.72% due fromJul. 6, 2010 to Sep. 20, 2010 4,293,414 4,295,600

1,350,000 Toronto-Dominion Bank, The Bankers’ Acceptances0.62% to 0.71% due fromAug. 31, 2010 to Sep. 24, 2010 1,347,571 1,347,892

1,600,000 Bank of Montreal Bankers’ Acceptances0.53% to 0.73% due fromJul. 20, 2010 to Sep. 20, 2010 1,597,745 1,598,019

300,000 Royal Bank of Canada Bankers’ Acceptances0.69% due Sep. 30, 2010 299,367 299,486

9,500,000 Bank of Montreal Bearers’ Deposit Notes0.49% to 0.59% due fromJul. 5, 2010 to Aug. 10, 2010 9,487,425 9,494,454

2,900,000 Royal Bank of Canada Bearers’ Deposit Notes0.62% due fromAug. 17, 2010 to Aug. 19, 2010 2,895,534 2,897,627

7,750,000 National Bank of Canada Term Deposit0.50% due Jul. 2, 2010 7,750,000 7,750,106

36,048,594 36,064,957


Currency Forward Contracts – 0.0% 62,952Futures Contracts – (0.1%) (314,317)OTHER ASSETS, LESS LIABILITIES – (1.3%) (6,041,623)

NET ASSETS – 100.0% 459,636,717

* This Security is not actively traded and considered illiquid.


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Canadian ($)

Contratualvalue in

Canadian ($)39 AUST 10 Year Bond Futures – Sep. 2010 3,303,969 3,314,623 10,654

(29) U.S. 10 Year Note Futures – Sep. 2010 (3,703,996) (3,779,696) (75,700)(18) Canadian 10 Year Bond Futures – Sep. 2010 (2,169,000) (2,228,940) (59,940)

TOTAL (124,986)

C U R R E N C Y F U T U R E S C O N T R A C T S

Number of Contracts Settlement DateContractual

Value Canadian ($)Fair Value


(Depreciation) ($)47 Australian $ against U.S.$ Sep. 2010 4,059,170 4,185,887 126,71715 British Pound against U.S.$ Sep. 2010 1,434,093 1,491,226 57,132

(31) Japanese Yen against U.S.$ Sep. 2010 (4,520,387) (4,663,188) (142,801)(26) Swiss Franc against U.S.$ Sep. 2010 (3,001,096) (3,212,842) (211,746)(17) Euro against U.S.$ Sep. 2010 (2,696,789) (2,768,094) (71,304)27 New Zealand U.S.$ Sep. 2010 1,901,271 1,963,871 62,600

TOTAL (179,402)

The above futures contracts are financial agreements to purchase/sell the bond/currency at a contracted price on a specific future date. However, the Fund does not intend to purchase/sell thebond/currency on settlement. Rather, it intends to close out each future contract before settlement by entering into equal, but offsetting future contracts.

With respect to the above future contracts, $200,000 of the August 05, 2010 Government of Canada Treasury Bills is held on margin.

The futures contracts outstanding at June 30, 2010 are placed with a financial institution with a credit rating of A+ by Standard & Poor’s.





June 30, 2010 ($)


(Depreciation)Sep. 15, 2010 Australian Dollar 5,996,041 U.S. Dollar 4,847,679 5,210,588 159,898Sep. 15, 2010 Australian Dollar 300,841 U.S. Dollar 243,429 261,652 7,803Sep. 15, 2010 Australian Dollar 114,368 U.S. Dollar 92,001 98,888 3,548Sep. 15, 2010 Australian Dollar 80,986 U.S. Dollar 69,166 74,344 (1,807)Sep. 15, 2010 Australian Dollar 29,976 U.S. Dollar 25,105 26,984 (136)Sep. 15, 2010 British Pound 2,706,083 U.S. Dollar 3,889,317 4,138,332 163,662Sep. 15, 2010 British Pound 142,857 U.S. Dollar 208,192 221,522 5,585Sep. 15, 2010 British Pound 128,392 U.S. Dollar 184,201 195,995 8,116Sep. 15, 2010 British Pound 113,500 U.S. Dollar 171,633 182,622 (2,186)Sep. 15, 2010 Danish Krone 647,850 U.S. Dollar 105,489 112,202 965Sep. 15, 2010 Danish Krone 180,363 U.S. Dollar 29,729 31,621 (115)Sep. 15, 2010 European Euro 7,624,537 U.S. Dollar 9,118,909 9,698,034 223,031Sep. 15, 2010 Hong Kong Dollar 2,964,323 U.S. Dollar 380,827 404,842 31Sep. 15, 2010 Hong Kong Dollar 2,648,957 U.S. Dollar 340,400 361,865 (66)Sep. 15, 2010 Hong Kong Dollar 1,519,235 U.S. Dollar 195,283 207,598 (97)Sep. 15, 2010 Hong Kong Dollar 1,477,877 U.S. Dollar 189,995 201,977 (125)Sep. 15, 2010 Hong Kong Dollar 858,099 U.S. Dollar 110,195 117,144 57Sep. 15, 2010 Israel Shekel 1,121,720 U.S. Dollar 290,594 309,131 (2,209)Sep. 15, 2010 Israel Shekel 38,662 U.S. Dollar 9,958 10,594 (15)Sep. 15, 2010 Japanese Yen 216,193,577 U.S. Dollar 2,379,624 2,526,591 74,163Sep. 15, 2010 Japanese Yen 127,373,189 U.S. Dollar 1,401,623 1,488,188 44,079Sep. 15, 2010 Japanese Yen 103,423,606 U.S. Dollar 1,138,337 1,208,641 35,519Sep. 15, 2010 Japanese Yen 28,327,800 U.S. Dollar 312,372 331,665 9,112Sep. 15, 2010 Japanese Yen 10,041,900 U.S. Dollar 109,011 115,744 5,058Sep. 15, 2010 Japanese Yen 4,976,950 U.S. Dollar 55,633 59,069 802Sep. 15, 2010 New Zealand Dollar 23,600 U.S. Dollar 15,499 16,587 630Sep. 15, 2010 New Zealand Dollar 19,201 U.S. Dollar 12,617 13,502 506Sep. 15, 2010 Norwegian Krone 2,880,530 U.S. Dollar 428,077 457,511 13,514Sep. 15, 2010 Norwegian Krone 288,173 U.S. Dollar 44,938 48,028 (906)Sep. 15, 2010 Singapore Dollar 4,979,778 U.S. Dollar 3,513,517 3,735,557 49,361Sep. 15, 2010 Singapore Dollar 236,938 U.S. Dollar 170,135 180,887 (800)Sep. 15, 2010 Singapore Dollar 98,644 U.S. Dollar 69,934 74,353 622Sep. 15, 2010 Singapore Dollar 97,415 U.S. Dollar 70,275 74,716 (675)Sep. 15, 2010 Singapore Dollar 84,759 U.S. Dollar 60,408 64,226 196Sep. 15, 2010 Singapore Dollar 28,130 U.S. Dollar 19,806 21,058 323Sep. 15, 2010 Swedish Krona 8,203,657 U.S. Dollar 1,013,460 1,078,451 41,662Sep. 15, 2010 Swedish Krona 1,788,526 U.S. Dollar 231,148 245,971 (1,769)Sep. 15, 2010 Swedish Krona 398,727 U.S. Dollar 50,515 53,755 687Sep. 15, 2010 Swedish Krona 117,025 U.S. Dollar 15,095 16,063 (85)Sep. 15, 2010 Swiss Franc 3,660,274 U.S. Dollar 3,185,700 3,385,258 227,793Sep. 15, 2010 Swiss Franc 120,609 U.S. Dollar 111,085 118,043 1,010Sep. 15, 2010 Swiss Franc 51,430 U.S. Dollar 45,099 47,924 2,843Sep. 15, 2010 U.S. Dollar 2,727,155 Australian Dollar 3,372,124 2,988,502 (88,046)Sep. 15, 2010 U.S. Dollar 4,893 Australian Dollar 5,943 5,267 (64)Sep. 15, 2010 U.S. Dollar 3,502,226 British Pound 2,437,007 3,872,453 (147,672)Sep. 15, 2010 U.S. Dollar 463,531 British Pound 313,406 498,008 (5,022)Sep. 15, 2010 U.S. Dollar 155,785 British Pound 106,208 168,767 (3,082)Sep. 15, 2010 U.S. Dollar 10,054 Canadian Dollar 10,410 10,394 299


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June 30, 2010 ($)


(Depreciation)Sep. 15, 2010 U.S. Dollar 502 Canadian Dollar 531 530 4Sep. 15, 2010 U.S. Dollar 566,509 Danish Krone 3,523,714 615,461 (12,952)Sep. 15, 2010 U.S. Dollar 175,636 Danish Krone 1,056,886 184,598 2,198Sep. 15, 2010 U.S. Dollar 134,137 Danish Krone 817,344 142,759 (99)Sep. 15, 2010 U.S. Dollar 29,785 Danish Krone 181,666 31,730 (53)Sep. 15, 2010 U.S. Dollar 8,786,988 European Euro 7,347,889 9,561,407 (216,033)Sep. 15, 2010 U.S. Dollar 3,048,450 European Euro 2,549,234 3,317,179 (75,009)Sep. 15, 2010 U.S. Dollar 710,190 European Euro 577,611 751,614 3,707Sep. 15, 2010 U.S. Dollar 646,139 European Euro 528,993 688,350 (1,151)Sep. 15, 2010 U.S. Dollar 567,671 European Euro 468,607 609,773 (6,029)Sep. 15, 2010 U.S. Dollar 381,433 European Euro 311,036 404,734 937Sep. 15, 2010 U.S. Dollar 160,599 European Euro 129,907 169,041 1,764Sep. 15, 2010 U.S. Dollar 834,657 Hong Kong Dollar 6,508,366 889,352 (1,655)Sep. 15, 2010 U.S. Dollar 39,645 Hong Kong Dollar 309,151 42,245 (81)Sep. 15, 2010 U.S. Dollar 109,983 Japanese Yen 9,821,350 118,299 (1,327)Sep. 15, 2010 U.S. Dollar 15,053 Japanese Yen 1,372,050 16,527 (517)Sep. 15, 2010 U.S. Dollar 170,644 Norwegian Krone 1,147,989 186,803 (5,316)Sep. 15, 2010 U.S. Dollar 34,104 Norwegian Krone 227,421 37,006 (735)Sep. 15, 2010 U.S. Dollar 9,858 Norwegian Krone 64,416 10,482 3Sep. 15, 2010 U.S. Dollar 3,819,417 Singapore Dollar 5,414,788 4,116,927 (54,797)Sep. 15, 2010 U.S. Dollar 3,292,968 Swedish Krona 26,660,528 3,638,010 (135,784)Sep. 15, 2010 U.S. Dollar 125,583 Swedish Krona 1,016,671 138,732 (5,168)Sep. 15, 2010 U.S. Dollar 69,520 Swedish Krona 544,576 74,311 (374)Sep. 15, 2010 U.S. Dollar 58,671 Swedish Krona 470,439 64,195 (1,795)Sep. 15, 2010 U.S. Dollar 1,198,676 Swiss Franc 1,376,883 1,360,265 (85,417)Sep. 15, 2010 U.S. Dollar 383,981 Swiss Franc 443,867 438,510 (30,128)Sep. 15, 2010 U.S. Dollar 76,098 Swiss Franc 84,619 83,598 (2,664)Sep. 15, 2010 U.S. Dollar 50,039 Swiss Franc 57,907 57,208 (3,989)Sep. 20, 2010 Canadian Dollar 1,328,204 U.S. Dollar 1,297,100 1,381,746 (53,541)Sep. 20, 2010 Canadian Dollar 1,911,259 U.S. Dollar 1,866,500 1,988,303 (77,045)

62,952





Canadian Equities 42.7 51.6Foreign Equities 19.2 21.6Bond and Debenture Instruments 31.7 22.5Money Market Instruments 7.8 4.1Currency Forward Contracts 0.0 (0.1)Futures Contracts (0.1) 0.1


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Less than 1 year $ 600,048 $ 2,859,5171-3 years 9,458,463 4,409,6683-5 years 19,973,929 16,428,3255-10 years 79,584,984 46,007,903H 10 years 35,996,034 30,996,486

Total $145,613,458 $100,701,899


As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$9,813,336, 2.1% of total net assets (December 31, 2009 – $1,932,269, 0.4% oftotal next assets). In practice, actual results may differ from this sensitivityanalysis and the difference could be material.

Currency risk (note 3)The tables below indicate the currencies to which the Fund had significant, netof the impact of foreign currency forward contracts, if any, exposure based onthe fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

U.S. Dollar 39,365,237 8.6 39,902,037 8.9European Euro 14,541,764 3.2 23,535,712 5.3Japanese Yen 14,184,528 3.1 13,750,915 3.1British Pound 6,993,817 1.5 7,499,392 1.7Swiss Franc 6,303,865 1.4 3,952,259 0.9Australian Dollar 1,883,406 0.4 (1,185,615) (0.3)Turkish Lira 1,780,791 0.4 2,026,498 0.4Swedish Krona 1,207,888 0.3 1,096,132 0.2Hong Kong Dollar 1,116,326 0.2 1,094,651 0.2Singapore Dollar 652,680 0.1 769,664 0.2Danish Krone 400,806 0.1 365,665 0.1Israel Shekel 320,475 0.1 761 0.0Norwegian Krone 300,501 0.1 373,662 0.1Thai Baht 113,543 0.0 184,151 0.0South African Rand 5,716 0.0 40,917 0.0Brazilian Real 1,218 0.0 62,387 0.0New Zealand Dollar (1,925,016) (0.4) 45,562 0.0

Total 87,247,545 19.1 93,514,750 20.8


Other price risk (note 3)The table below indicates the estimated impact on the net assets of the Funddue to a 20% change in the respective market indices, with all other variablesheld constant. The Fund’s historical sensitivity measure may not be

representative of its future sensitivity measure, and accordingly, the impact onnet assets could be materially different.

BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P/TSX Composite Index – 40%,DEX Universe Bond Index – 40%,Morgan Stanley Capital

International World Index – 20%



Percentage ofBond



Percentage ofBond



June 30, 2010 December 31, 2009

AAA 29.5 9.4 22.8 5.2AA 36.5 11.5 33.0 7.4A 27.9 8.9 34.8 7.8BBB 6.1 1.9 9.0 2.0BB – – 0.2 0.1Unrated – – 0.2 –

Total 100.0 31.7 100.0 22.5



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $29,603,745 $4,270,399Futures contracts – 312,570Currency forward contracts 1,026,536 873,356

$30,630,281 $5,456,325



Equities $ 244,810,432 $ 39,440,858 $ – $ 284,251,290Bond and Debenture Instruments – 36,064,957 – 36,064,957Money Market Instruments – 145,613,458 – 145,613,458Currency Forward Contracts – 62,952 – 62,952Futures Contracts (Long) 257,103 – – 257,103

245,067,535 221,182,225 – 466,249,760

Futures Contracts (Short) (561,491) – – (561,491)

$244,506,044 $221,182,225 $ – $465,688,269


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Equities $ 281,481,327 $ 45,725,126 $ – $ 327,206,453Bond and Debenture Instruments – 100,701,899 – 100,701,899Money Market Instruments – 18,541,350 – 18,541,350Futures Contracts (Long) (97,453) – – (97,453)

281,383,874 164,968,375 – 446,352,249

Currency Forward Contracts – (283,579) – (283,579)Futures Contracts (Short) 440,326 – – 440,326

440,326 (283,579) – 156,747

$281,824,200 $164,684,796 $ – $446,508,996




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Scotia Canadian Dividend Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $3,072,998,723 $3,030,258,370Cash 967,506 519,026Accrued investment income 6,761,463 7,785,872Receivable for securities sold 15,569,051 374,537Subscriptions receivable 2,638,623 2,224,989Receivable for currency forward contracts – 2,849,889

3,098,935,366 3,044,012,683

LIABILITIESDistributions payable 404,928 585Redemptions payable 1,452,296 757,747Accrued expenses 3,114,487 1,540,864Payable for currency forward contracts 8,281,409 –

13,253,120 2,299,196

Net Assets $3,085,682,246 $3,041,713,487

NET ASSETS PER CLASSClass A Units $2,189,139,897 $2,147,769,215Advisor Class Units $ 26,688,594 $ 23,462,722Class F Units $ 7,107,771 $ 8,357,222Class I Units $ 724,109,892 $ 744,943,742Manager Class Units $ 138,636,092 $ 117,180,586

UNITS OUTSTANDINGClass A Units 63,660,323 59,980,316Advisor Class Units 779,760 658,809Class F Units 208,007 234,500Class I Units 21,224,081 20,859,855Manager Class Units 4,081,462 3,302,668

NET ASSETS PER UNITClass A Units $ 34.39 $ 35.81Advisor Class Units $ 34.23 $ 35.61Class F Units $ 34.17 $ 35.64Class I Units $ 34.12 $ 35.71Manager Class Units $ 33.97 $ 35.48


2010 2009INVESTMENT INCOMEDividends $ 41,935,353 $ 39,944,298Interest 4,050,404 3,909,520Capital gains distributions received 44,419 121,277Securities lending 171,915 223,579Foreign withholding taxes/Tax reclaims (436,030) (484,269)

45,766,061 43,714,405

EXPENSESManagement fees (note 5) 16,967,172 12,438,664Audit fees 14,175 14,905Independent Review Committee fees 5,256 5,050Custodian fees 15,092 13,989Filing fees 66,045 68,883Legal fees 13,542 13,712Unitholder reporting costs 96,579 108,649Unitholder administration, service fees and GST 1,440,229 1,215,964Overdraft charges 220 1,626

18,618,310 13,881,442Absorbed expenses – (45,059)

18,618,310 13,836,383


Net realized gain (loss) on investments sold 37,123,635 (55,197,112)Net realized gain (loss) on currency forwards 5,252,997 2,803,313Net realized gain (loss) on foreign exchange 792,810 (1,432,205)Transaction costs (1,803,890) (1,825,512)Change in unrealized appreciation (depreciation) of investments (167,236,805) 316,523,086Change in unrealized appreciation (depreciation) of currency forwards (11,131,298) 305,323



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (80,893,511) $214,839,379Advisor Class Units $ (1,037,192) $ 1,942,043Class F Units $ (244,450) $ 770,349Class I Units $ (23,019,392) $ 65,107,831Manager Class Units* $ (4,660,255) $ 8,395,313

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (1.30) $ 3.75Advisor Class Units $ (1.40) $ 4.35Class F Units $ (1.12) $ 3.73Class I Units $ (1.09) $ 3.88Manager Class Units* $ (1.26) $ 3.67


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $2,147,769,215 $1,615,129,535Advisor Class Units 23,462,722 10,238,816Class F Units 8,357,222 5,786,295Class I Units 744,943,742 472,825,795Manager Class Units* 117,180,586 66,228,346

3,041,713,487 2,170,208,787

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (80,893,511) 214,839,379Advisor Class Units (1,037,192) 1,942,043Class F Units (244,450) 770,349Class I Units (23,019,392) 65,107,831Manager Class Units* (4,660,255) 8,395,313

(109,854,800) 291,054,915


Class A Units (10,001,645) (13,683,743)Advisor Class Units (80,910) (108,779)Class F Units (61,941) (73,966)Class I Units (9,926,733) (8,341,557)Manager Class Units* (1,744,658) (1,095,141)

(21,815,887) (23,303,186)


Class A Units 264,169,672 134,021,719Advisor Class Units 5,411,630 6,253,786Class F Units 1,255,509 920,384Class I Units 55,527,915 19,979,469Manager Class Units* 52,427,360 23,304,701

Reinvested distributionsClass A Units 9,804,477 13,379,436Advisor Class Units 73,024 99,957Class F Units 55,837 67,671Class I Units 9,743,563 8,241,586Manager Class Units* 1,240,682 696,324

Payments on redemptionClass A Units (141,708,311) (84,993,585)Advisor Class Units (1,140,680) (1,355,663)Class F Units (2,254,406) (735,397)Class I Units (53,159,203) (11,980,326)Manager Class Units* (25,807,623) (17,258,839)

175,639,446 90,641,223

INCREASE (DECREASE) IN NET ASSETSClass A Units 41,370,682 263,563,206Advisor Class Units 3,225,872 6,831,344Class F Units (1,249,451) 949,041Class I Units (20,833,850) 73,007,003Manager Class Units* 21,455,506 14,042,358

43,968,759 358,392,952

NET ASSETS – END OF PERIODClass A Units 2,189,139,897 1,878,692,741Advisor Class Units 26,688,594 17,070,160Class F Units 7,107,771 6,735,336Class I Units 724,109,892 545,832,798Manager Class Units* 138,636,092 80,270,704

$3,085,682,246 $2,528,601,739



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Numberof Shares/Number ofContracts Issuer

AverageCost ($)

FairValue ($)


800,052 AltaGas Income Trust 17,332,014 14,760,9591,400,000 ARC Energy Trust 27,536,958 27,594,000

100,000 Baytex Energy Trust 3,180,343 3,180,0001,598,500 Bonavista Energy Trust 41,035,575 36,461,7851,375,000 Cameco Corporation 40,938,477 31,130,0002,700,000 Canadian Natural Resources Ltd. 77,465,003 95,391,0001,075,000 Canadian Oil Sands Trust 27,005,096 29,014,2501,902,000 Cenovus Energy Inc. 46,477,890 52,114,800

100,000 Crescent Point Energy Corp. 4,063,550 3,713,0001,548,900 Enbridge Inc. 56,705,467 76,794,4621,525,000 EnCana Corporation 41,462,467 49,166,0001,415,000 Imperial Oil Ltd. 46,302,345 54,873,7001,400,000 Mullen Group Limited 21,815,343 19,992,0002,550,000 Suncor Energy, Inc. 92,872,659 79,891,5001,400,000 Talisman Energy Inc. 26,328,763 22,540,0002,025,000 TransCanada Corporation 61,767,189 72,110,250

632,289,139 668,727,706

Materials – 4.6%1,300,000 Barrick Gold Corporation 46,997,565 62,816,000

800,000 Potash Corporation of Saskatchewan Inc. 75,839,860 73,344,000200,000 Teck Resources Ltd., Class B 7,754,491 6,296,000

130,591,916 142,456,000

Industrials – 6.8%2,000,000 Bombardier Inc., Class B 9,814,048 9,680,0001,700,000 CAE, Inc. 15,271,950 15,691,0001,125,000 Canadian National Railway Company 44,199,390 68,636,250

485,000 Canadian Pacific Railway Limited 24,144,032 27,674,1002,000,000 Finning International Inc. 42,709,988 35,260,000

340,000 SNC-Lavalin Group Inc. 10,935,047 14,487,4001,450,000 Toromont Industries Ltd. 37,532,320 33,277,500

217,400 Westshore Terminals Income Fund 3,613,664 3,763,194

188,220,439 208,469,444

Consumer Discretionary – 4.2%433,333 Magna International Inc. 27,342,253 30,389,643850,000 Shaw Communications, Inc., Class B 17,212,947 16,294,500

2,150,000 Thomson Reuters Corporation 77,935,485 81,915,000

122,490,685 128,599,143

Consumer Staples – 2.5%1,475,000 Saputo Inc. 34,334,589 44,736,7501,000,000 Shoppers Drug Mart Corporation 44,012,468 32,910,000

78,347,057 77,646,750

Financials – 38.9%1,825,000 Bank of Montreal 77,050,580 105,375,500

(5,000) Bank of Montreal, Written Call Option $64.00 Jul. 16, 2010 (359,500) (45,000)3,350,000 Bank of Nova Scotia, The 154,420,467 164,284,0001,600,000 Brookfield Asset Management Inc. 30,626,508 38,496,0001,150,000 Canadian Imperial Bank of Commerce 68,093,724 76,061,000

925,000 Cominar Real Estate Investment Trust 17,111,852 17,158,7501,199,967 First Capital Realty Inc. 14,897,167 16,319,551

70,350 First Capital Realty Inc. Warrants $17.53 Oct. 29, 2010* – 312,3541,700,000 Genworth MI Canada Inc. 40,127,332 39,423,0002,100,000 Great-West Lifeco Inc. 49,105,391 50,526,000

725,000 Intact Financial Corporation 19,647,500 32,552,500


AverageCost ($)

FairValue ($)


4,145,000 Manulife Financial Corporation 99,702,780 64,040,2505,000 Manulife Financial Corporation, Call Options $20.00 Jul. 16, 2010 157,079 10,000

(5,000) Manulife Financial Corporation, Written Put Options $17.00Jul. 16, 2010 (187,750) (730,000)

522,550 National Bank of Canada 32,745,120 28,452,8483,475,000 Power Corporation of Canada 87,504,095 88,647,2504,475,000 Royal Bank of Canada 180,956,667 226,882,500

(5,000) Royal Bank of Canada, Writte Put Options $50.00 Jul. 16, 2010 (270,000) (345,000)(5,000) Royal Bank of Canada, Written Call Options $56.00 Jul. 16, 2010 (225,000) (75,000)

1,700,000 Sun Life Financial Inc. 63,490,877 47,532,0002,995,000 Toronto-Dominion Bank, The 158,494,130 206,595,100

1,093,089,019 1,201,473,603

Telecommunication Services – 3.8%1,823,623 BCE Inc. 58,021,224 56,641,730

100,000 BCE Inc. 4.50%, Preferred, Series T 1,735,000 2,069,000100,000 BCE Inc. 6.17%, Preferred, Series R 1,726,000 2,060,000804,711 Rogers Communications, Inc., Class B 26,055,187 27,987,849764,815 TELUS Corporation Non-Voting 27,715,723 29,430,081

115,253,134 118,188,660

Utilities – 1.8%1,600,000 Brookfield Infrastructure Partners LP 25,086,863 26,784,000

618,500 Emera Inc. 12,242,517 15,196,545300,000 Fortis, Inc. 6,123,317 8,151,000317,861 TransAlta Corporation 8,347,238 6,239,611

51,799,935 56,371,156

TOTAL CANADIAN EQUITIES 2,412,081,324 2,601,932,462


175,000 Occidental Petroleum Corporation 14,734,639 14,359,213(800) Occidental Petroleum Corporation, Written Call $90.00

Jul. 16, 2010 (104,268) (5,105)

14,630,371 14,354,108

Industrials – 0.5%500,000 Republic Services, Inc. 15,413,024 15,804,307

Consumer Discretionary – 0.9%350,000 Family Dollar Stores, Inc. 10,509,378 14,029,779500,000 McGraw-Hill Companies, Inc., The 14,625,179 14,942,834

25,134,557 28,972,613

Consumer Staples – 2.7%400,000 General Mills, Inc. 14,518,277 15,089,604

1,250,000 Kraft Foods Inc. 38,306,608 37,197,554250,000 PepsiCo, Inc. 16,699,620 16,195,161300,000 Philip Morris International Inc. 14,992,733 14,622,707

84,517,238 83,105,026

Financials – 1.3%375,000 MetLife, Inc. 17,101,351 15,051,848550,000 U.S. Bancorp 14,426,706 13,073,651450,000 Wells Fargo & Company 14,380,156 12,232,917

45,908,213 40,358,416

S C O T I A F U N D S S E M I - A N N U A L R E P O R T T O U N I T H O L D E R S – 2 0 1 0E

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AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Information Technology – 2.5%

375,000 Accenture PLC 16,614,487 15,402,818875,000 Applied Materials, Inc. 12,704,987 11,185,855

1,000,000 Microsoft Corporation 29,668,496 24,461,579500,000 Oracle Corporation 12,948,197 11,406,541500,000 Paychex, Inc. 15,792,661 13,804,839

87,728,828 76,261,632


TOTAL EQUITIES 2,685,413,555 2,860,788,564



10,285,000 Province of Ontario Promissory Notes(U.S.) 0.18% to 0.20% due from

Jul. 6, 2010 to Aug. 9, 2010 10,628,690 10,936,291


Jul. 16, 2010 to Sep. 15, 2010 18,675,553 19,052,51730,625,000 Province of Ontario Commercial Paper

(U.S.) 0.1% due on Jul. 14,2010 31,671,138 32,569,9796,090,000 Export Development Canada Commercial Paper

(U.S.) 0.13% to 0.15% due fromAug. 17, 2010 to Sep. 15, 2010 6,251,220 6,474,996

56,597,911 58,097,492

TOTAL MONEY MARKET INSTRUMENTS 210,372,355 212,210,159


Currency Forward Contracts – (0.3)% (8,281,409)OTHER ASSETS, LESS LIABILITIES – 0.7% 20,964,932

NET ASSETS – 100.0% 3,085,682,246






June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 188,510,459 U.S. Dollar 181,591,811 193,460,620 (4,950,161)Sep. 30, 2010 Canadian Dollar 129,341,683 U.S. Dollar 124,533,447 132,672,931 (3,331,248)

(8,281,409)



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Canadian EquitiesEnergy 21.7 19.6Materials 4.6 6.3Industrials 6.8 8.0Consumer Discretionary 4.2 5.7Consumer Staples 2.5 1.5Financials 38.9 39.2Telecommunication Services 3.8 4.0Utilities 1.8 2.4

Foreign Equities 8.4 8.9Money Market Instruments 6.9 4.0Currency Forward Contracts (0.3) 0.1







June 30, 2010 December 31, 2009

U.S. Dollar 1,874,654 0.1 41,807,668 1.4

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$187,465 approximately 0.0% of total net assets, (December 31, 2009 –$4,180,767, approximately 0.1% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.


BenchmarkImpact on

Net Asset ($)Impact on

Net Assets %

June 30, 2010

S&P/TSX Composite Index-80%,S&P/TSX Financial Index – 20%


BenchmarkImpact on

Net Asset $

Impact on NetAssets % as ofJune 30, 2010

December 31, 2009

S&P/TSX Composite Index-100% 468,423,877 15.4

Credit risk (note 3)The table below summarizes the credit rating of the bond and debenturesinstruments, excluding cash and money market instruments but includingpreferred shares, held by the Fund.

Percentage ofBond



Percentage ofBond



June 30, 2010 December 31, 2009

AAA – – 76.2 0.8AA – – 11.1 0.1Unrated – – 12.7 0.2

Total – – 100.0 1.1



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $ 4,971,711 $2,299,196Currency forward contracts 8,281,409 –

$13,253,120 $2,299,196



Equities $ 2,861,666,315 $ – $ – $ 2,861,666,315Warrants – 312,354 – 312,354Options (Calls/Written Puts) (1,065,000) – – (1,065,000)Money Market Instruments – 212,210,159 – 212,210,159

2,860,601,315 212,522,513 – 3,073,123,828

Options (Written Calls) (125,105) – – (125,105)Currency Forward Contracts – (8,281,409) – (8,281,409)

(125,105) (8,281,409) – (8,406,514)

$2,860,476,210 $204,241,104 $ – $3,064,717,314


Equities $ 2,907,892,499 $ – $ – $ 2,907,892,499Warrants – 258,888 – 258,888Money Market Instruments – 122,185,752 – 122,185,752Currency Forward Contracts – 2,849,889 – 2,849,889

2,907,892,499 125,294,529 – 3,033,187,028


$2,907,813,730 $125,294,529 $ – $3,033,108,259



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Scotia Canadian Blue Chip Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $297,108,730 $324,555,549Cash 150,827 96,742Accrued investment income 573,865 727,113Receivable for securities sold 160,491 –Subscriptions receivable 40,223 97,627

298,034,136 325,477,031

LIABILITIESRedemptions payable 142,543 249,994Accrued expenses 513,534 283,140

656,077 533,134

Net Assets $297,378,059 $324,943,897

NET ASSETS PER CLASSClass A Units $287,413,073 $313,467,020Class F Units $ 241 $ 253Class I Units $ 9,964,745 $ 11,476,624

UNITS OUTSTANDINGClass A Units 12,343,348 12,767,681Class F Units 10 10Class I Units 388,976 429,116



2010 2009INVESTMENT INCOMEDividends $ 3,411,566 $ 4,086,165Interest 275,900 155,985Securities lending 10,189 18,925Foreign withholding taxes/Tax reclaims (11,536) (19,993)

3,686,119 4,241,082

EXPENSESManagement fees (note 5) 2,826,297 2,444,031Audit fees 10,263 9,865Independent Review Committee fees 1,204 1,325Custodian fees 6,773 4,974Filing fees 15,311 15,640Legal fees 4,336 4,695Unitholder reporting costs 23,193 31,275Unitholder administration, service fees and GST 301,586 306,761Overdraft charges 4 94


3,187,648 2,817,011

Net investment income (loss) 498,471 1,424,071

Net realized gain (loss) on investments sold 13,302,091 (2,334,584)Net realized gain (loss) on foreign exchange (11,447) (10,745)Transaction costs (265,875) (342,832)Change in unrealized appreciation (depreciation) of investments (29,564,836) 36,778,773



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(15,620,323) $33,812,516Class F Units $ (12) $ 277Class I Units $ (421,261) $ 1,701,890

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (1.24) $ 2.56Class F Units $ (1.17) $ 0.93Class I Units $ (1.03) $ 3.30


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $313,467,020 $263,824,767Class F Units 253 6,022Class I Units 11,476,624 11,142,863

324,943,897 274,973,652

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (15,620,323) 33,812,516Class F Units (12) 277Class I Units (421,261) 1,701,890

(16,041,596) 35,514,683


Class A Units 9,018,170 6,927,636Class I Units 48,730 1,100,572

Reinvested distributionsClass A Units – 59

Payments on redemptionClass A Units (19,451,794) (11,175,020)Class F Units – (6,299)Class I Units (1,139,348) (3,183,818)

(11,524,242) (6,336,870)

INCREASE (DECREASE) IN NET ASSETSClass A Units (26,053,947) 29,565,191Class F Units (12) (6,022)Class I Units (1,511,879) (381,356)

(27,565,838) 29,177,813

NET ASSETS – END OF PERIODClass A Units 287,413,073 293,389,958Class F Units 241 –Class I Units 9,964,745 10,761,507

$297,378,059 $304,151,465


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AverageCost ($)

FairValue ($)


51,000 Baytex Energy Trust 1,633,106 1,621,800108,030 Bonavista Energy Trust 2,110,286 2,464,16463,620 Cameco Corporation 1,636,615 1,440,357

311,148 Canadian Natural Resources Ltd. 7,016,544 10,992,859199,196 Canadian Oil Sands Trust 5,742,238 5,376,300261,243 Cenovus Energy Inc. 5,904,808 7,158,05874,620 Enbridge Inc. 2,632,171 3,699,660

245,153 EnCana Corporation 5,442,365 7,903,73356,478 Husky Energy Inc. 1,475,981 1,425,50581,332 Imperial Oil Ltd. 3,110,591 3,154,055

179,282 Nexen Inc. 5,214,761 3,754,16576,021 Penn West Energy Trust 1,654,085 1,543,22648,371 Petrobank Energy and Resources Ltd. 2,313,894 1,811,494


63,082,369 71,764,279


304,082 Barrick Gold Corporation 10,132,353 14,693,24290,300 Eldorado Gold Corporation 1,613,608 1,722,924

246,220 Goldcorp, Inc. 8,397,994 11,476,314210,560 HudBay Minerals, Inc. 2,468,378 2,351,95594,199 Potash Corporation of Saskatchewan Inc. 6,952,057 8,636,164

241,837 Teck Resources Ltd., Class B 5,779,453 7,613,029

43,149,014 54,963,256

Industrials – 5.3%302,265 Bombardier Inc., Class B 1,358,544 1,462,96392,350 CAE, Inc. 945,905 852,391

129,800 Canadian National Railway Company 4,511,249 7,919,09855,214 Canadian Pacific Railway Limited 2,415,604 3,150,51159,000 Finning International Inc. 1,148,576 1,040,17032,248 SNC-Lavalin Group Inc. 1,161,166 1,374,087

11,541,044 15,799,220

Consumer Discretionary – 4.0%27,510 Canadian Tire Corporation, Limited 1,479,995 1,462,15760,396 Magna International Inc. 2,780,280 4,235,571

116,413 Thomson Reuters Corporation 4,793,863 4,435,33554,380 Tim Hortons, Inc. 1,843,575 1,853,270

10,897,713 11,986,333

Consumer Staples – 3.0%38,663 Metro Inc. 1,546,762 1,616,500

101,440 Saputo Inc. 1,957,436 3,076,675130,243 Shoppers Drug Mart Corporation 5,021,375 4,286,297

8,525,573 8,979,472

Financials – 29.2%126,968 Bank of Montreal 5,703,911 7,331,132269,560 Bank of Nova Scotia, The 12,838,975 13,219,222103,513 Canadian Imperial Bank of Commerce 6,061,221 6,846,35054,800 Genworth MI Canada Inc. 1,551,480 1,270,81275,860 Great-West Lifeco Inc. 1,802,704 1,825,19284,180 Intact Financial Corporation 2,387,227 3,779,682

339,370 Manulife Financial Corporation 7,470,848 5,243,267213,790 Power Corporation of Canada 4,970,993 5,453,783354,592 Royal Bank of Canada 12,396,138 17,977,814


AverageCost ($)

FairValue ($)


181,144 Sun Life Financial Inc. 6,026,490 5,064,786274,118 Toronto-Dominion Bank, The 12,929,014 18,908,660

74,139,001 86,920,700


Telecommunication Services – 3.8%188,861 BCE Inc. 6,043,185 5,866,023158,500 Rogers Communications, Inc., Class B 4,272,965 5,512,630

10,316,150 11,378,653

Utilities – 1.1%59,849 Fortis, Inc. 1,541,480 1,626,09784,280 TransAlta Corporation 1,800,322 1,654,416

3,341,802 3,280,513

Index Units – 0.8%135,000 iShares CDN S&P/TSX 60 Index Fund 2,403,600 2,243,700

1,964 iShares CDN S&P/TSX 60 Index Fund, Put Options $17.00Jul. 16, 2010 100,164 119,804

1,754 iShares S&P/TSX Cap Energy Index Fund, Put Options $18.00Jul. 16, 2010 66,652 210,480

2,570,416 2,573,984



11,500 Chesapeake Energy Corporation 332,466 255,8684,010 Chevron Corporation 310,294 289,2405,400 ConocoPhillips 277,140 281,5873,470 Occidental Petroleum Corporation 285,955 284,7234,460 Schlumberger Limited 257,879 262,311

1,463,734 1,373,729

Materials – 0.1%2,360 Freeport-McMoRan Copper & Gold Inc., Class B 187,975 148,389

Industrials – 0.5%2,860 3M Co. 226,403 240,1465,400 Boeing Company, The 361,125 360,268

17,620 General Electric Company 293,785 269,6642,610 Lockheed Martin Corporation 209,981 206,6359,650 Norfolk Southern Corporation 514,975 544,362

1,606,269 1,621,075

Consumer Discretionary – 0.3%6,150 Best Buy Co., Inc. 233,536 221,2108,930 McGraw-Hill Companies, Inc., The 328,561 266,879

12,480 Staples, Inc. 334,487 252,8525,110 Walt Disney Company, The 167,693 171,031

1,064,277 911,972

Consumer Staples – 0.4%4,910 Colgate-Palmolive Company 418,527 411,0259,150 CVS Caremark Corporation 327,432 285,0344,740 PepsiCo, Inc. 307,428 307,0603,170 Wal-Mart Stores, Inc. 175,410 161,998

1,228,797 1,165,117

Health Care – 0.5%3,700 Johnson & Johnson 244,897 232,3305,570 Medtronic, Inc. 254,236 214,8626,430 Merck & Co., Inc. 244,253 238,941

16,470 Pfizer Inc. 310,730 249,612


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AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Health Care (cont’d)

9,100 UnitedHealth Group Incorporated 304,557 274,6703,150 WellPoint Inc. 181,691 163,924

1,540,364 1,374,339

Financials – 0.5%10,930 Bank of New York Mellon Corporation, The 327,905 286,662

7,160 JPMorgan Chase & Co. 288,778 278,6338,920 Lincoln National Corporation 237,603 230,0567,480 MetLife, Inc. 273,174 300,234


1,497,251 1,459,582

Information Technology – 1.0%4,800 Accenture PLC 207,143 197,156

31,550 Cisco Systems, Inc. 792,443 714,719450 Google Inc. 253,983 212,918

10,320 Hewlett-Packard Company 548,159 474,59426,460 Microsoft Corporation 767,566 647,25330,370 Oracle Corporation 762,957 692,833

3,332,251 2,939,473

Telecommunication Services – 0.1%13,530 AT&T Inc. 377,592 347,513

Utilities – 0.1%8,630 Dominion Resources, Inc. 352,125 355,296


TOTAL EQUITIES 251,278,719 289,353,101


0.35% to 0.44% due Aug. 19, 2010 7,754,207 7,755,629



NET ASSETS – 100.0% 297,378,059




Canadian EquitiesEnergy 24.2 25.3Materials 18.5 17.3Industrials 5.3 6.7Consumer Discretionary 4.0 4.6Consumer Staples 3.0 1.2Financials 29.2 30.4Information Technology 3.4 3.5Telecommunication Services 3.8 4.1Utilities 1.1 1.1Index Units 0.8 –

United States Equities 4.0 4.1Money Market Instruments 2.6 1.6


Currency risk (note 3)The table below indicates the currency to which the Fund had significantexposure, net of the impact of foreign currency forward contracts, if any, basedon the fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

U.S. Dollar 11,719,976 3.9 13,365,474 4.1



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P/TSX Composite Index 54,122,807 57,840,014 18.2 17.8



June 30, 2010 December 31, 2009




Equities $ 289,022,817 $ – $ – $ 289,022,817Money Market Instruments – 7,755,629 – 7,755,629

289,022,817 7,755,629 – 296,778,446

Options (Put) 330,284 – – 330,284

$289,353,101 $7,755,629 $ – $297,108,730



$319,202,236 $5,353,313 $ – $324,555,549



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Scotia Canadian Equity Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $503,251,496 $339,387,599Cash 258,103 194,504Accrued investment income 903,310 633,063Receivable for securities sold 266,357 –

504,679,266 340,215,166

LIABILITIESPayable for securities purchased – 15,028,504Accrued expenses 32,050 16,043

32,050 15,044,547

Net Assets $504,647,216 $325,170,619

NET ASSETS PER CLASSClass I Units $230,392,548 $120,904,330Manager Class Units $274,254,668 $204,266,289




2010 2009INVESTMENT INCOMEDividends $ 4,772,907 $ 2,160,423Interest 401,771 108,267Securities lending 11,909 8,774Foreign withholding taxes/Tax reclaims – (753)

5,186,587 2,276,711

EXPENSESManagement fees (note 5) 122,937 68,789Audit fees 10,263 10,312Custodian fees 5,663 4,064Filing fees 7,714 7,606Legal fees 1,602 1,770Unitholder reporting costs 3,556 3,703Unitholder administration, service fees and GST 25,045 22,210Overdraft charges 2 –


176,782 118,415


Net realized gain (loss) on investments sold 4,146,684 (10,127,623)Net realized gain (loss) on foreign exchange 19 –Transaction costs (655,346) (298,532)Change in unrealized appreciation (depreciation) of investments (31,687,417) 25,563,490


Increase (decrease) in Net Assets from operations $(23,186,255) $ 17,295,631

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units** $ (9,834,739) $ 2,990,347Manager Class Units* $(13,351,516) $ 14,305,284

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass I Units** $ (0.57) $ 2.00Manager Class Units* $ (0.58) $ 0.90


2010 2009NET ASSETS – BEGINNING OF PERIODClass I Units** $120,904,330 $ –Manager Class Units* 204,266,289 168,285,255

325,170,619 168,285,255

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units** (9,834,739) 2,990,347Manager Class Units* (13,351,516) 14,305,284

(23,186,255) 17,295,631



Payments on redemptionClass I Units** (1,658,120) (685,900)Manager Class Units* (68,933,786) (80,093,686)

202,662,852 (13,732,753)

INCREASE (DECREASE) IN NET ASSETSClass I Units** 109,488,218 36,431,297Manager Class Units* 69,988,379 (32,868,419)

179,476,597 3,562,878


$504,647,216 $171,848,133




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AverageCost ($)

FairValue ($)

EQUITIES – 95.2%Energy – 24.7%

81,490 Baytex Energy Trust 2,609,646 2,591,382187,750 Bonavista Energy Trust 4,105,133 4,282,578102,090 Cameco Corporation 2,625,966 2,311,318538,890 Canadian Natural Resources Ltd. 18,439,180 19,038,984350,367 Canadian Oil Sands Trust 9,905,912 9,456,405458,954 Cenovus Energy Inc. 12,927,573 12,575,340127,400 Enbridge Inc. 5,688,020 6,316,492442,994 EnCana Corporation 14,128,947 14,282,12799,920 Husky Energy Inc. 2,986,423 2,521,981

135,874 Imperial Oil Ltd. 5,646,824 5,269,1942,911 iShares S&P/TSX Cap Energy Index Fund, Put Options $18.00

Jul. 16, 2010 110,618 349,320299,440 Nexen Inc. 7,303,338 6,270,274126,436 Penn West Energy Trust 2,704,717 2,566,65178,868 Petrobank Energy and Resources Ltd. 3,566,286 2,953,607


128,841,782 124,457,450


537,056 Barrick Gold Corporation 21,953,005 25,950,545149,110 Eldorado Gold Corporation 2,664,368 2,845,019429,099 Goldcorp, Inc. 17,045,964 20,000,303339,580 HudBay Minerals, Inc. 3,981,172 3,793,109164,621 Potash Corporation of Saskatchewan Inc. 17,306,679 15,092,453416,120 Teck Resources Ltd., Class B 13,859,758 13,099,458

90,985,490 95,310,553

Industrials – 5.3%502,413 Bombardier Inc., Class B 2,438,465 2,431,679158,470 CAE, Inc. 1,599,200 1,462,678223,985 Canadian National Railway Company 12,491,622 13,665,32589,220 Canadian Pacific Railway Limited 4,687,063 5,090,89396,960 Finning International Inc. 1,880,702 1,709,40557,721 SNC-Lavalin Group Inc. 2,652,258 2,459,492

25,749,310 26,819,472

Consumer Discretionary – 3.9%50,580 Canadian Tire Corporation, Limited 2,786,362 2,688,32799,911 Magna International Inc. 5,494,851 7,006,758

197,978 Thomson Reuters Corporation 7,163,889 7,542,96274,490 Tim Hortons, Inc. 2,527,730 2,538,619

17,972,832 19,776,666

Consumer Staples – 3.1%63,169 Metro Inc. 2,589,544 2,641,096

173,750 Saputo Inc. 4,624,518 5,269,838229,070 Shoppers Drug Mart Corporation 9,451,688 7,538,694

16,665,750 15,449,628

Financials – 29.4%240,430 Bank of Montreal 13,263,539 13,882,428403,500 Bank of Nova Scotia, The 18,571,182 19,787,640175,470 Canadian Imperial Bank of Commerce 11,838,916 11,605,58696,960 Genworth MI Canada Inc. 2,733,315 2,248,502

129,560 Great-West Lifeco Inc. 3,402,346 3,117,214150,910 Intact Financial Corporation 5,547,788 6,775,859574,166 Manulife Financial Corporation 12,484,794 8,870,865381,880 Power Corporation of Canada 10,772,429 9,741,759

Numberof Shares/Number ofContracts/FaceValue ($) Issuer

AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Financials (cont’d)

603,500 Royal Bank of Canada 32,039,415 30,597,449317,803 Sun Life Financial Inc. 10,162,738 8,885,772478,200 Toronto-Dominion Bank, The 31,571,516 32,986,235

152,387,978 148,499,309



18,491,797 19,545,691

Utilities – 1.1%99,445 Fortis, Inc. 2,676,903 2,701,921

144,740 TransAlta Corporation 3,262,708 2,841,246

5,939,611 5,543,167

Index Units – 1.6%475,000 iShares CDN S&P/TSX 60 Index Fund 8,142,623 7,894,500

3,193 iShares CDN S&P/TSX 60 Index Fund, Put Options $17.00Jul. 16, 2010 162,843 194,773

8,305,466 8,089,273

TOTAL EQUITIES 487,449,795 480,389,613





NET ASSETS – 100.0% 504,647,216




Energy 24.7 26.5Materials 18.9 18.0Industrials 5.3 6.9Consumer Discretionary 3.9 4.8Consumer Staples 3.1 1.2Financials 29.4 31.2Information Technology 3.3 3.6Telecommunication Services 3.9 4.0Utilities 1.1 1.1Index Units 1.6 –Money Market Instruments 4.5 7.1


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BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009





June 30, 2010 December 31, 2009





479,845,520 22,861,883 – 502,707,403

Options (Puts) 544,093 – – 544,093

$480,389,613 $22,861,883 $ – $503,251,496



$316,266,780 $23,120,819 $ – $339,387,599



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Scotia Canadian Growth Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $482,282,836 $528,960,002Cash 556,666 142,093Accrued investment income 346,592 781,798Receivable for securities sold 31,587,344 –Subscriptions receivable 63,105 70,302Receivable for futures contracts 3,563 –Receivable for currency forward contracts – 1,052

514,840,106 529,955,247

LIABILITIESPayable for securities purchased 18,481,835 –Redemptions payable 295,902 141,233Accrued expenses 699,439 381,619Payable for currency forward contracts 488,573 –

19,965,749 522,852

Net Assets $494,874,357 $529,432,395

NET ASSETS PER CLASSClass A Units $385,536,349 $421,236,916Advisor Class Units $ 506,352 $ 465,349Class F Units $ 51,713 $ 166,561Class I Units $108,779,943 $107,563,569

UNITS OUTSTANDINGClass A Units 7,826,202 8,158,679Advisor Class Units 10,319 9,040Class F Units 1,011 3,121Class I Units 1,943,800 1,852,957

NET ASSETS PER UNITClass A Units $ 49.26 $ 51.63Advisor Class Units $ 49.07 $ 51.48Class F Units $ 51.14 $ 53.37Class I Units $ 55.96 $ 58.05


2010 2009INVESTMENT INCOMEDividends $ 3,882,505 $ 6,102,319Interest 115,754 1,572,934Securities lending 24,589 36,290Foreign withholding taxes/Tax reclaims (79,443) (116,571)

3,943,405 7,594,972EXPENSESManagement fees (note 5) 3,796,808 3,231,799Audit fees 12,608 11,038Independent Review Committee fees 1,989 2,216Custodian fees 18,260 15,699Filing fees 23,683 25,497Legal fees 6,120 7,359Unitholder reporting costs 36,073 49,854Unitholder administration, service fees and GST 458,785 473,373Overdraft charges 1,931 2,958


4,349,824 3,779,943Net investment income (loss) (406,419) 3,815,029Net realized gain (loss) on investments sold 22,840,444 28,286,900Net realized gain (loss) on futures contracts (71,570) 237,857Net realized gain (loss) on currency forwards 3,946,189 2,100,679Net realized gain (loss) on foreign exchange 623,005 (791,275)Transaction costs (3,750,115) (5,453,606)Change in unrealized appreciation (depreciation) of investments (45,011,017) 59,676,824Change in unrealized appreciation (depreciation) of currency forwards (489,625) (698,405)Net gain (loss) on investments and transaction costs (21,912,689) 83,358,974Increase (decrease) in Net Assets from operations $(22,319,108) $87,174,003

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(18,509,682) $52,358,512Advisor Class Units $ (24,528) $ 29,034Class F Units $ 622 $ 3,206Class I Units $ (3,785,520) $34,783,251INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (2.31) $ 6.18Advisor Class Units $ (2.41) $ 6.28Class F Units $ 0.19 $ 6.56Class I Units $ (1.97) $ 7.45


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $421,236,916 $340,437,945Advisor Class Units 465,349 168,743Class F Units 166,561 20,072Class I Units 107,563,569 205,358,637

529,432,395 545,985,397

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (18,509,682) 52,358,512Advisor Class Units (24,528) 29,034Class F Units 622 3,206Class I Units (3,785,520) 34,783,251

(22,319,108) 87,174,003


Class A Units 12,034,329 11,119,098Advisor Class Units 66,790 25,000Class F Units 67,296 –Class I Units 6,157,270 5,171,999

Payments on redemptionClass A Units (29,225,214) (16,205,117)Advisor Class Units (1,259) (17,077)Class F Units (182,766) –Class I Units (1,155,376) (10,494,496)

(12,238,930) (10,400,593)

INCREASE (DECREASE) IN NET ASSETSClass A Units (35,700,567) 47,272,493Advisor Class Units 41,003 36,957Class F Units (114,848) 3,206Class I Units 1,216,374 29,460,754

(34,558,038) 76,773,410

NET ASSETS – END OF PERIODClass A Units 385,536,349 387,710,438Advisor Class Units 506,352 205,700Class F Units 51,713 23,278Class I Units 108,779,943 234,819,391

$494,874,357 $622,758,807


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AverageCost ($)

FairValue ($)


650,000 Bankers Petroleum Ltd. 5,205,560 4,543,500(2,000) Bankers Petroleum Ltd., Written Call Options $8.00 Jul. 16, 2010 (100,000) (30,000)

(500) Bankers Petroleum Ltd., Written Put Options $7.00 Jul. 16, 2010 (24,500) (15,000)800,000 Canadian Natural Resources Ltd. 28,398,977 28,264,000(2,000) Canadian Natural Resources Limited, Written Call Options $32.50

Jul. 16, 2010 (359,777) (350,970)1,100,000 Cenovus Energy Inc. 29,762,891 30,140,000

400,000 Crew Energy Inc. 6,704,639 6,016,000100,000 Pacific Rubiales Energy Corporation 1,994,448 2,386,000

2,000,000 Southern Pacific Resource Corp 2,152,642 2,000,000800,000 Suncor Energy, Inc. 26,667,655 25,064,000(2,000) Suncor Energy, Inc., Written Call Options $31.00 Jul. 16, 2010 (307,957) (89,338)

300,000 Talisman Energy Inc. 5,211,294 4,830,000

105,305,872 102,758,192

Materials – 12.7%300,000 Agnico-Eagle Mines Limited 18,982,483 19,374,000

(250) Agnico-Eagle Mines Limited, Written Call Options $60.00Jul. 16, 2010 (90,684) (64,610)

(250) Allied Nevada Gold Corporation, Written Call Option $21.00Jul. 16, 2010 (23,250) (21,250)

260,000 Barrick Gold Corporation 10,819,245 12,563,200(1,000) Barrick Gold Corporation, Written Call Options $46.00

Jul. 16, 2010 (144,897) (122,308)750,000 Brigus Gold Corp. Warrants $2.20 Nov. 19, 2014* – –250,000 Electric Metals Inc. Warrants $0.40 Aug. 22, 2010* – –(2,000) FNX Mining Company Inc., Written Put Options $11.00

Oct. 15, 2010 (186,000) (582,999)250,000 Goldcorp, Inc. 9,938,219 11,652,500200,000 IAMGOLD Corporation 3,172,080 3,752,000(1,000) IAMGOLD Corporation, Written Call Options $19.00 Jul. 16, 2010 (75,000) (64,000)

500,000 Quadra FNX Mining Ltd. 6,063,186 4,865,0001,500,000 Romarco Minerals, Inc. 3,088,414 2,655,000

200,000 Teck Resources Ltd., Class B 7,314,192 6,296,000(700) Vengold Inc., Written Call Options $9.00 Aug. 20, 2010 (37,800) (42,000)

350,000 Ventana Gold Corporation 3,565,635 2,768,500(1,000) Ventana Gold Corporation, Written Call Options $10.00

Jul. 16, 2010 (63,000) (20,000)

62,322,823 63,009,033

Industrials – 5.0%400,000 Canadian Pacific Railway Limited 23,213,264 22,824,00050,000 SNC-Lavalin Group Inc. 2,233,887 2,130,500

25,447,151 24,954,500

Consumer Discretionary – 4.8%150,000 Magna International Inc. 10,029,817 10,519,500

(700) Magna International Inc., Written Put Options $60.00Aug. 20, 2010 (78,876) (100,505)

350,000 Thomson Reuters Corporation 13,439,847 13,335,000

23,390,788 23,753,995

Consumer Staples – 1.4%181,100 Loblaw Companies Limited 6,872,246 6,992,271

Financials – 23.8%650,000 Bank of Nova Scotia, The 27,231,298 31,876,000300,000 Manulife Financial Corporation 5,727,299 4,635,000337,909 Power Corporation of Canada 9,705,789 8,620,060680,000 Royal Bank of Canada 34,543,621 34,476,000


AverageCost ($)

FairValue ($)


550,000 Toronto-Dominion Bank, The 37,099,856 37,939,000

114,307,863 117,546,060


(500) Research In Motion Limited, Written Call Options $52.50Jul. 16, 2010 (93,324) (35,629)

13,437,010 10,430,371



(500) Cenovus Energy Inc., Written Put Options $30.00 Jul. 16, 2010 (78,610) (212,709)100,000 Hess Corporation 5,631,670 5,353,895

5,553,060 5,141,186

Materials – 0.2%50,000 Allied Nevada Gold Corporation 1,025,000 1,048,000

Industrials – 3.5%150,000 Raytheon Company 8,469,747 7,719,755300,000 Republic Services, Inc. 9,081,153 9,482,584

17,550,900 17,202,339

Consumer Discretionary – 1.3%250,000 Cablevision Systems Corporation 6,353,313 6,383,940(1,000) Cablevision Systems Corporation, Written Call Options $25.00

Jul. 16, 2010(109,351) (63,813)

6,243,962 6,320,127

Consumer Staples – 0.7%50,000 PepsiCo, Inc. 3,309,866 3,239,032

Health Care – 4.1%120,000 Amgen Inc. 7,033,920 6,713,108100,000 Merck & Co., Inc. 3,421,967 3,716,033300,000 Pfizer Inc. 4,781,442 4,546,663100,000 WellPoint Inc. 5,517,421 5,203,935

20,754,750 20,179,739

Financials – 2.4%150,000 MetLife, Inc. 6,302,479 6,020,739100,000 PNC Financial Services Group, Inc., The 6,286,124 6,007,977

12,588,603 12,028,716

Information Technology – 5.0%300,000 EMC Corporation 5,718,203 5,832,491100,000 Intel Corporation 2,171,568 2,067,535300,000 Microsoft Corporation 8,138,136 7,338,474

(500) Research In Motion Limited, Written Put Options $55.00Jul. 16, 2010 (80,948) (316,405)

130,000 Visa Inc. 9,953,849 9,780,590(500) Visa Inc., Written Call Options $80.00 Jul. 16, 2010 (120,191) (7,445)

25,780,617 24,695,240

Index Fund – 0.2%2,000 S&P 500 Deposit Receipts, Put Options $107.00 Jul. 16, 2010 845,499 1,082,691



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AverageCost ($)

FairValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United States (cont’d)China – 0.8%

80,000 China Mobile Limited 4,285,396 4,203,988

Israel – 1.1%100,000 Teva Pharmaceutical Industries Ltd. ADR 5,753,073 5,529,380

10,038,469 9,733,368


TOTAL EQUITIES 454,774,479 450,114,860


AverageCost ($)

FairValue ($)




Currency Forward Contracts – (0.1)% (488,573)OTHER ASSETS, LESS LIABILITIES – 2.7% 13,080,094

NET ASSETS – 100.0% 494,874,357

* This security is not actively traded and considered illiquid

Note: As at June 30, 2010, the Scotia Canadian Equity Fund held 10 futures contracts to sale the Standard and Poor’s 500 Stock Index (“S&P 500 Index”) for settlement in September 2010.These futures contracts are financial agreements to sale the S&P 500 Index at a contracted price on a specific future date. However, the Fund does not intend to sale the S&P 500 Index onsettlement. Rather, it intends to close out each futures contracts before settlement by entering into equal, but offsetting futures contracts.

Number ofFutures Contracts Contract Issuer

Contractual ValueCanadian ($)

Fair ValueCanadian ($)

Appreciation/(Depreciation) ($)

S&P 500 Composite Stock Index

(10) Futures Contracts - Sep. 2010 (2,753,922) (2,729,593) 24,329

TOTAL 24,329






June 30, 2010 ($)


(Depreciation)

Jul. 30, 2010 Canadian Dollar 31,550,400 U.S. Dollar 30,000,000 31,945,480 (395,080)Jul. 30, 2010 Canadian Dollar 10,555,000 U.S. Dollar 10,000,000 10,648,493 (93,493)

(488,573)





Canadian EquitiesEnergy 20.8 21.0Materials 12.7 16.5Industrials 5.0 4.3Consumer Discretionary 4.8 1.4Consumer Staples 1.4 0.3Health Care – 0.1Financials 23.8 25.3Information Technology 2.1 4.6Telecommunication Services – 4.7

Foreign Equities 20.3 14.7Money Market Instruments 6.5 7.0Currency Forward Contracts (0.1) –


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June 30, 2010 December 31, 2009

U.S. Dollar 56,603,478 11.4 61,878,335 11.7



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009





June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $19,477,176 $522,852Currency forward contracts 488,573 –

$19,965,749 $522,852



Equities $ 451,171,150 $ – $ – $ 451,171,150Warrants – – – –Options (Written Puts) (1,227,618) – – (1,227,618)Money Market Instruments – 32,167,976 – 32,167,976

449,943,532 32,167,976 – 482,111,508

Options (Puts/Written Calls) 171,328 – – 171,328Currency Forward Contracts – (488,573) – (488,573)Futures Contracts (Short) 24,329 – – 24,329

195,657 (488,573) – (292,916)

$450,139,189 $31,679,403 $ – $481,818,592


Equities $ 491,637,054 $ 2,762,591 $ – $ 494,399,645Warrants – – – –Options (Written Puts) (824,504) – – (824,504)Money Market Instruments – 36,921,820 – 36,921,820Currency Forward Contracts – 1,052 – 1,052

490,812,550 39,685,463 – 530,498,013

Options (Written Calls) (1,536,959) – – (1,536,959)

$489,275,591 $39,685,463 $ – $528,961,054



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Scotia Canadian Small Cap Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $68,886,602 $74,769,545Cash 107,060 103,990Accrued investment income 101,743 165,596Subscriptions receivable 11,507 12,388

69,106,912 75,051,519

LIABILITIESPayable for securities purchased 822,500 –Distributions payable – 455Redemptions payable 62,625 46,840Accrued expenses 116,260 64,586

1,001,385 111,881

Net Assets $68,105,527 $74,939,638

NET ASSETS PER CLASSClass A Units $54,607,320 $58,179,507Class F Units $ – $ 6,321Class I Units $13,498,207 $16,753,810

UNITS OUTSTANDINGClass A Units 2,910,344 2,914,237Class F Units – 322Class I Units 651,197 768,314

NET ASSETS PER UNITClass A Units $ 18.76 $ 19.96Class F Units $ – $ 19.62Class I Units $ 20.73 $ 21.81


2010 2009INVESTMENT INCOMEDividends $ 260,035 $ 942,184Interest 454,780 1,091,483Securities lending 19,527 83,139

734,342 2,116,806

EXPENSESManagement fees (note 5) 596,045 361,448Audit fees 12,424 10,136Independent Review Committee fees 405 440Custodian fees 2,785 2,763Filing fees 8,942 15,012Legal fees 2,522 2,721Unitholder reporting costs 10,160 12,859Unitholder administration, service fees and GST 103,027 105,404Overdraft charges – 31


734,046 472,695

Net investment income (loss) 296 1,644,111

Net realized gain (loss) on investments sold 4,272,984 (11,404,691)Net realized gain (loss) on foreign exchange (19,980) 20,384Transaction costs (108,101) (338,292)Change in unrealized appreciation (depreciation) of investments (8,258,956) 50,725,954



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(3,553,989) $ 10,566,320Class F Units $ (148) $ –Class I Units $ (559,620) $ 30,081,146

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (1.21) $ 3.79Class F Units $ (0.46) $ –Class I Units $ (0.81) $ 4.31


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $58,179,507 $ 32,153,943Class F Units 6,321 –Class I Units 16,753,810 92,949,842

74,939,638 125,103,785

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (3,553,989) 10,566,320Class F Units (148) –Class I Units (559,620) 30,081,146

(4,113,757) 40,647,466



Payments on redemptionClass A Units (5,769,389) (2,060,244)Class F Units (6,173) –Class I Units (3,849,610) (24,985,246)

(2,720,354) (22,105,340)

INCREASE (DECREASE) IN NET ASSETSClass A Units (3,572,187) 10,363,504Class F Units (6,321) –Class I Units (3,255,603) 8,178,622

(6,834,111) 18,542,126

NET ASSETS – END OF PERIODClass A Units 54,607,320 42,517,447Class F Units – –Class I Units 13,498,207 101,128,464

$68,105,527 $143,645,911


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AverageCost ($)

FairValue ($)


165,000 Advantage Oil & Gas Ltd. 1,166,729 1,016,400110,000 Angle Energy Inc. Subscription Receipt* 869,000 784,300187,500 Bankers Petroleum Ltd. 534,131 1,310,62575,000 C&C Energia Ltd. 616,297 549,750

600,000 Connacher Oil and Gas Limited 558,811 768,00085,000 Crew Energy Inc. 637,850 1,278,400

117,472 Daylight Energy Ltd. 1,227,582 1,045,501225,000 Fairborne Energy Ltd. 928,877 1,026,000250,000 Galleon Energy Inc. 2,019,196 1,072,500165,000 GasFrac Energy Services Inc. Subscription Receipt* 825,000 825,000105,000 NAL Oil & Gas Trust 943,484 1,108,800300,000 Paladin Energy Limited 928,339 933,000165,000 Pan Orient Energy Corporation 826,682 849,750808,204 ProSep Inc. 637,602 88,902

1,640,000 Reliable Energy Ltd. 492,000 475,600250,000 Second Wave Petroleum, Inc. 529,200 715,000700,000 Southern Pacific Resource Corp 643,871 700,000250,000 Spartan Exploration Ltd. 581,045 730,000750,000 Terra Energy Corp. 972,866 1,057,500

15,938,562 16,335,028

Materials – 19.2%170,000 Canam Group Inc. 1,121,390 1,183,200125,000 Consolidated Thompson Iron Mines Limited 740,307 905,00030,000 Detour Gold Corporation 427,500 708,900

325,000 Equinox Minerals Limited 1,163,365 1,202,50035,000 Fortress Paper Limited 822,500 735,350

100,000 HudBay Minerals, Inc. 1,022,764 1,117,00060,000 Keegan Resources, Inc 370,940 339,600

150,000 Labrador Iron Mines Holdings, Ltd. 838,583 652,500250,000 Lundin Mining Corporation 1,033,407 752,50085,000 Minefinders Corporation Ltd. 722,478 802,400

150,000 Mineral Deposits Limited 105,000 121,500250,000 Neo Material Technologies, Inc. 470,589 887,500115,000 Quadra FNX Mining Ltd. 1,180,788 1,118,950150,000 San Gold Corporation 517,148 682,50042,500 Silver Standard Resources Inc. 836,903 802,825

115,000 Thompson Creek Metals Company, Inc. 1,399,756 1,061,450

12,773,418 13,073,675

Industrials – 8.8%55,000 Armtec Infrastructure Income Fund 878,029 1,020,25060,000 IESI-BFC Ltd. 1,139,544 1,273,800

160,000 New Flyer Industries Inc. 1,336,121 1,563,20075,000 Vicwest Income Fund 945,840 1,047,75090,000 WestJet Airlines Ltd. 1,173,697 1,067,400

5,473,231 5,972,400

Consumer Discretionary – 11.0%50,000 Cineplex Galaxy Income Fund 786,124 975,00045,000 Cogeco Cable Inc. 1,473,177 1,533,600

145,000 Great Canadian Gaming Corporation 994,973 975,850150,000 Le Chateau Inc. 1,762,272 1,884,00035,000 Quebecor Inc., Class B 691,678 1,138,55037,500 Stella-Jones Inc. Subscription Receipts* 937,500 1,013,250

6,645,724 7,520,250

Consumer Staples – 5.2%162,600 Atrium Innovations Inc. 2,178,864 2,482,900125,000 Jean Coutu Group (PJC) Inc., The 1,125,000 1,026,250

3,303,864 3,509,150


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)CANADIAN EQUITIES (cont’d)Health Care – 2.5%

175,000 Cangene Corporation 1,102,085 638,750110,000 CML Healthcare Income Fund 1,378,403 1,092,300

2,480,488 1,731,050

Financials – 11.0%55,000 Cash Store Financial Services Inc., The 320,754 887,150

100,000 Equitable Group Inc. 2,524,218 2,181,00060,000 Home Capital Group Inc. 1,288,473 2,530,20090,000 Killam Properties Inc. 572,763 756,90027,500 Laurentian Bank of Canada 1,184,442 1,158,300

5,890,650 7,513,550

Information Technology – 10.0%150,000 5N Plus Inc. 698,407 772,50080,000 Aastra Technologies Limited 1,625,312 1,824,000

145,000 Absolute Software Corporation 1,011,186 594,500425,000 COM DEV International Ltd. 1,632,811 803,250215,000 Matrikon Inc. 753,461 965,350170,000 Miranda Technologies Inc. 1,113,077 814,300100,000 Pure Technologies Ltd. 217,673 400,00055,000 Ruggedcom, Inc. 1,108,807 638,000

8,160,734 6,811,900

Utilities – 1.0%50,000 Northland Power Income Fund 520,784 686,500



175,000 Gran Tierra Energy, Inc. 852,833 927,500

Utilities – 0.8%660,000 U.S. Geothermal Inc.* 891,000 554,400330,000 U.S. Geothermal Inc. Warrants $1.75 Aug. 17, 2011* – –

891,000 554,400


Australia – 3.3%400,000 CGA Mining Limited 694,000 792,000850,000 Mineral Deposits Limited 516,270 711,176375,000 Perseus Mining Limited 565,493 762,606

1,775,763 2,265,782


TOTAL EQUITIES 64,707,051 66,901,185

MONEY MARKET INSTRUMENTS – 2.9%630,000 Government of Canada Treasury Bills

0.25% to 0.44% due fromJul. 8, 2010 to Aug. 19, 2010 629,564 629,719

325,000 Canadian Wheat Board, The Commercial Paper(U.S.) 0.16% due Sep. 10, 2010 337,748 345,545

950,000 Export Development Canada Commercial Paper(U.S.) 0.16% to 0.17% due from

Aug. 17, 2010 to Aug. 30, 2010 998,876 1,010,153

1,966,188 1,985,417


OTHER ASSETS, LESS LIABILITIES – (1.1)% (781,075)

NET ASSETS – 100.0% 68,105,527



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78




Canadian EquitiesEnergy 24.0 21.4Materials 19.2 11.3Industrials 8.8 16.1Consumer Discretionary 11.0 13.2Consumer Staples 5.2 4.6Health Care 2.5 2.7Financials 11.0 10.2Information Technology 10.0 8.7Utilities 1.0 2.9

Foreign Equities 5.5 5.1Money Market Instruments 2.9 3.6


Currency risk (note 3)The table below indicates the currencies to which the Fund had significantexposure, net of the impact of foreign currency forward contracts, if any, basedon the fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

U.S. Dollar 1,361,296 2.0 1,747,780 2.3Australian Dollar 834,331 1.2 878,363 1.2

Total 2,195,627 3.2 2,626,143 3.5

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$219,563 approximately 0.3% of total net assets, (December 31, 2009 –$262,614, approximately 0.4% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.


BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


BMO Nesbitt Burns SmallCap Index 13,621,105 14,838,048 20.0 19.8



June 30, 2010 December 31, 2009




Equities $ 64,457,553 $ 2,443,632 $ – $ 66,901,185Warrants – – – –Money Market Instruments – 1,985,417 – 1,985,417

$64,457,553 $4,429,049 $ – $68,886,602


Equities $ 70,699,698 $ 1,401,881 $ – $ 72,101,579Money Market Instruments – 2,667,966 – 2,667,966

$70,699,698 $4,069,847 $ – $74,769,545



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79

Scotia Resource Fund (Unaudited)


June 30,2010

December 31,2009


184,023,502 190,796,364


311,111 225,908

Net Assets $183,712,391 $190,570,456

NET ASSETS PER CLASSClass A Units $131,167,040 $138,916,693Class F Units $ 2,852 $ –Class I Units $ 52,542,499 $ 51,653,763

UNITS OUTSTANDINGClass A Units 6,878,852 6,576,707Class F Units 150 –Class I Units 2,712,181 2,433,693

NET ASSETS PER UNITClass A Units $ 19.07 $ 21.12Class F Units $ 19.01 $ –Class I Units $ 19.37 $ 21.22


2010 2009INVESTMENT INCOMEDividends $ 927,103 $ 448,044Interest 18,216 204,913Securities lending 53,939 30,652Foreign withholding taxes/Tax reclaims (32,321) (18,004)

966,937 665,605

EXPENSESManagement fees (note 5) 1,396,356 895,480Audit fees 10,263 9,855Independent Review Committee fees 624 591Custodian fees 2,183 1,952Filing fees 10,230 10,180Legal fees 3,019 3,059Unitholder reporting costs 13,729 16,012Unitholder administration, service fees and GST 160,423 135,599Overdraft charges 17 –

1,596,844 1,072,728Absorbed expenses (157) (28,394)

1,596,687 1,044,334

Net investment income (loss) (629,750) (378,729)

Net realized gain (loss) on investments sold 10,295,291 (13,598,169)Net realized gain (loss) on foreign exchange (69,422) 176,511Transaction costs (282,955) (195,691)Change in unrealized appreciation (depreciation) of investments (27,960,214) 38,296,455



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(14,047,789) $ 24,300,377Class F Units* $ (206) $ –Class I Units** $ (4,599,055) $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (2.06) $ 3.94Class F Units* $ (1.37) $ –Class I Units** $ (1.78) $ –


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $138,916,693 $ 74,558,356Class I Units** 51,653,763 –

190,570,456 74,558,356

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (14,047,789) 24,300,377Class F Units* (206) –Class I Units** (4,599,055) –

(18,647,050) 24,300,377


Class A Units 18,567,685 15,862,578Class F Units* 3,058 –Class I Units** 6,699,785 –

Payments on redemptionClass A Units (12,269,549) (5,715,693)Class I Units** (1,211,994) –

11,788,985 10,146,885

INCREASE (DECREASE) IN NET ASSETSClass A Units (7,749,653) 34,447,262Class F Units* 2,852 –Class I Units** 888,736 –

(6,858,065) 34,447,262

NET ASSETS – END OF PERIODClass A Units 131,167,040 109,005,618Class F Units* 2,852 –Class I Units** 52,542,499 –

$183,712,391 $109,005,618

* Start date June 18, 2010.

** Start date September 8, 2009.


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AverageCost ($)

FairValue ($)


300,000 Angle Energy Inc. 1,875,220 2,139,000550,000 Bankers Petroleum Ltd. 2,024,881 3,844,500200,000 C&C Energia Ltd. 1,650,941 1,466,000110,000 Cameco Corporation 3,539,410 2,490,400285,000 Canadian Natural Resources Ltd. 8,885,395 10,069,050115,000 Canadian Oil Sands Trust 3,016,217 3,103,850260,000 Cenovus Energy Inc. 7,919,678 7,124,000

1,750,000 Connacher Oil and Gas Limited 1,749,450 2,240,000175,000 Crew Energy Inc. 1,257,889 2,632,000226,553 Daylight Energy Ltd. 2,367,479 2,016,32280,000 EnCana Corporation 2,947,506 2,579,200

500,000 Fairborne Energy Ltd. 1,940,968 2,280,000150,000 Galleon Energy Inc. 1,000,725 643,500455,000 GasFrac Energy Services Inc. Subscription Receipt* 2,275,000 2,275,000230,000 NAL Oil & Gas Trust 2,136,612 2,428,800750,000 Paladin Energy Limited 2,788,821 2,332,500350,000 Pan Orient Energy Corporation 1,714,973 1,802,50075,000 Petrobank Energy and Resources Ltd. 2,315,603 2,808,750

2,150,000 Southern Pacific Resource Corp 2,002,840 2,150,000325,000 Spartan Exploration Ltd. 923,042 949,000385,000 Suncor Energy, Inc. 14,488,992 12,062,050250,000 Talisman Energy Inc. 3,854,782 4,025,000

72,676,424 73,461,422

Materials – 36.2%32,500 Agrium Inc. 1,845,261 1,689,675

295,000 Barrick Gold Corporation 11,945,754 14,254,400375,000 Brigus Gold Corp. 737,500 498,750

1,000,000 Brigus Gold Corp. Warrants $2.20 Nov. 19, 2014* – –45,785 Detour Gold Corporation 652,436 1,081,900

575,000 Equinox Minerals Limited 1,507,477 2,127,500255,000 Goldcorp, Inc. 9,868,688 11,885,550160,000 IAMGOLD Corporation 2,446,200 3,001,600

2,000,000 Iberian Minerals Corporation 972,644 840,000145,000 Keegan Resources, Inc 889,420 820,700380,000 Labrador Iron Mines Holdings, Ltd. 2,128,731 1,653,000550,000 Lundin Mining Corporation 2,355,985 1,655,500215,000 Minefinders Corporation Ltd. 1,960,871 2,029,600875,000 Mineral Deposits Limited 853,450 708,750112,500 Potash Corporation of Saskatchewan Inc. 13,201,436 10,314,000235,000 Quadra FNX Mining Ltd. 2,700,756 2,286,550

1,000,000 Romarco Minerals, Inc. 890,400 1,770,000135,000 Silver Standard Resources Inc. 3,166,521 2,550,150150,000 Sino-Forest Corporation 2,286,886 2,269,50095,000 Teck Resources Ltd., Class B 1,696,233 2,990,600

225,000 Thompson Creek Metals Company, Inc. 2,896,061 2,076,750

65,002,710 66,504,475



50,000 Anadarko Petroleum Corporation 3,316,197 1,917,04330,000 Chevron Corporation 2,491,965 2,163,89350,000 Exxon Mobil Corporation 3,377,954 3,028,982

450,000 Gran Tierra Energy, Inc. 1,641,923 2,385,00025,000 Occidental Petroleum Corporation 1,716,058 2,051,31650,000 Southwestern Energy Company 2,128,531 2,054,24142,500 Transocean Ltd. 3,827,629 2,090,986

18,500,257 15,691,461


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)FOREIGN EQUITIES (cont’d)United States (cont’d)Materials – 8.5%

38,500 Air Products and Chemicals, Inc. 2,865,017 2,653,746100,000 Allied Nevada Gold Corporation 936,234 2,096,00020,000 Cliffs Natural Resources Inc. 1,155,802 1,003,137

125,000 Dow Chemical Company, The 3,810,473 3,153,41642,500 Freeport-McMoRan Copper & Gold Inc., Class B 3,558,940 2,672,26830,000 Monsanto Company 2,545,555 1,474,07660,000 Mosaic Company, The 3,606,119 2,487,424

18,478,140 15,540,067


Australia – 2.6%1,000,000 CGA Mining Limited 1,735,000 1,980,0001,125,000 Mineral Deposits Limited 744,280 941,262

900,000 Perseus Mining Limited 1,414,461 1,834,570

3,893,741 4,755,832

Brazil – 1.6%112,500 Vale SA ADR 3,125,954 2,912,257


TOTAL EQUITIES 181,677,226 178,865,514



190,000 Canadian Wheat Board Commercial Paper(U.S.) 0.12% due Jul. 7, 2010 197,516 202,070

4,828,915 4,834,549



NET ASSETS – 100.0% 183,712,391





Canadian EquitiesEnergy 40.0 39.0Materials 36.2 32.2

Foreign Equities 21.2 23.4Money Market Instruments 2.6 5.2


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June 30, 2010 December 31, 2009

U.S. Dollar 29,878,842 16.3 39,661,796 20.8Australian Dollar 1,628,881 0.9 1,584,104 0.8

Total 31,507,723 17.2 41,245,900 21.6


Other price risk (note 3)The table below indicates the estimated impact on the net assets of the Funddue to a 20% change in the respective market indices using historical measureof sensitivity of the Fund’s return relative to return of its benchmark stockindex as of June 30, 2010 and December 31, 2009 respectively with all othervariable held constant. The Fund’s historical sensitivity measure may not berepresentative of its future sensitivity measure, and accordingly, the impact onnet assets could be materially different.

BenchmarkImpact on


Net Assets (%)

June 30, 2010

S&P 500 Energy Index – 10%,S&P/TSX Energy Index – 40%,S&P 500 Material Index -10%,S&P/TSX Material Index – 40%


BenchmarkImpact on


Net Assets (%)

December 31, 2009

S&P/TSX Energy Index – 65%,S&P/TSX Material Index – 35%

Benched Benchmark Impact(product of all the benchmarks above) 38,495,232 20.2



June 30, 2010 December 31, 2009




Equities $ 174,961,632 $ 3,903,882 $ – $ 178,865,514Warrants – – – –Money Market Instruments – 4,834,549 – 4,834,549

$174,961,632 $8,738,431 $ – $183,700,063


Equities $ 174,808,307 $ 5,484,302 $ – $ 180,292,609Warrants – 875 – 875Money Market Instruments – 9,929,862 – 9,929,862

$174,808,307 $15,415,039 $ – $190,223,346



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Scotia North American Equity Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $314,243,565 $389,569,348Cash 214,603 199,301Accrued investment income 511,398 570,942Receivable for securities sold 649,078 5,002,404Receivable for currency forward contracts – 853,875

315,618,644 396,195,870

LIABILITIESAccrued expenses 36,628 –Payable for currency forward contracts 1,403,123 23,992

1,439,751 23,992

Net Assets $314,178,893 $396,171,878






3,938,445 4,016,710

EXPENSESManagement fees (note 5) 180,997 142,284Audit fees 12,608 10,485Custodian fees 4,071 4,827Filing fees 7,289 7,294Legal fees 1,602 1,769Unitholder reporting costs 3,556 3,703Unitholder administration, service fees and GST 27,766 25,760Overdraft charges 40 68


237,929 196,187


Net realized gain (loss) on investments sold 7,190,352 (19,396,473)Net realized gain (loss) on currency forwards 5,445,024 (738,125)Net realized gain (loss) on foreign exchange (101,562) 184,976Transaction costs (489,084) (360,995)Change in unrealized appreciation (depreciation) of investments (35,438,042) 42,489,968Change in unrealized appreciation (depreciation) of currency forwards (2,256,998) (238,224)



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* $(21,949,794) $ 25,761,650




INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* (21,949,794) 25,761,650


Manager Class Units* 178,313 116,528,364Payments on redemption


(60,043,191) 72,525,032

INCREASE (DECREASE) IN NET ASSETSManager Class Units* (81,992,985) 98,286,682

NET ASSETS – END OF PERIOD$314,178,893 $358,576,606



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AverageCost ($)

FairValue ($)


161,020 Cameco Corporation 5,330,293 3,645,493294,120 Canadian Natural Resources Ltd. 9,400,035 10,391,260222,530 Canadian Oil Sands Trust 8,284,865 6,006,085279,090 EnCana Corporation 8,680,491 8,997,862

83,560 Imperial Oil Ltd. 3,537,872 3,240,457326,210 Suncor Energy, Inc. 14,729,583 10,220,159303,490 Talisman Energy Inc. 6,101,788 4,886,189214,480 TransCanada Corporation 7,163,618 7,637,633

63,228,545 55,025,138

Materials – 10.3%102,430 Agnico-Eagle Mines Limited 7,180,544 6,614,929275,030 Barrick Gold Corporation 11,245,104 13,289,450

78,930 Potash Corporation of Saskatchewan Inc. 10,680,334 7,236,302169,380 Teck Resources Ltd., Class B 5,324,228 5,332,082

34,430,210 32,472,763

Industrials – 4.1%478,760 Bombardier Inc., Class B 2,439,761 2,317,198129,970 Canadian National Railway Company 6,020,809 7,929,470

64,494 SNC-Lavalin Group Inc. 2,494,449 2,748,089

10,955,019 12,994,757

Consumer Discretionary – 2.3%189,580 Thomson Reuters Corporation 6,663,012 7,222,998

Consumer Staples – 2.7%180,810 Saputo Inc. 5,196,586 5,483,967

87,760 Shoppers Drug Mart Corporation 3,948,297 2,888,182

9,144,883 8,372,149

Financials – 19.0%90,030 Canadian Imperial Bank of Commerce 6,041,283 5,954,584

144,550 Great-West Lifeco Inc. 3,902,850 3,477,87368,860 Intact Financial Corporation 2,154,300 3,091,814

317,430 Manulife Financial Corporation 6,634,287 4,904,29470,960 National Bank of Canada 4,194,431 3,863,772

185,010 Power Corporation of Canada 5,398,757 4,719,605284,680 Royal Bank of Canada 11,990,937 14,433,276100,290 Sun Life Financial Inc. 3,269,604 2,804,108238,150 Toronto-Dominion Bank, The 13,382,738 16,427,587

56,969,187 59,676,913



9,797,951 10,469,248

Utilities – 1.1%123,280 Fortis, Inc. 3,477,729 3,349,518

Index Units – 0.1%1,371 iShares CDN S&P/TSX 60 Index Fund, Put Options $17.00

Jul. 16, 2010 69,921 83,6311,184 iShares S&P/TSX Cap Energy Index Fund, Put Options $18.00

Jul. 16, 2010 44,992 142,080

114,913 225,711



104,750 Chesapeake Energy Corporation 3,127,891 2,330,62536,450 Chevron Corporation 3,008,193 2,629,129


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)UNITED STATES EQUITIES (cont’d)Energy (cont’d)

49,150 ConocoPhillips 2,667,903 2,562,96131,490 Occidental Petroleum Corporation 2,323,560 2,583,83840,990 Schlumberger Limited 2,370,057 2,410,792

13,497,604 12,517,345

Materials – 0.4%21,480 Freeport-McMoRan Copper & Gold Inc., Class B 1,921,981 1,350,596

Industrials – 4.7%26,090 3M Co. 2,019,167 2,190,70049,150 Boeing Company, The 2,993,031 3,279,106

160,480 General Electric Company 2,310,644 2,456,05723,730 Lockheed Martin Corporation 1,878,048 1,878,71487,880 Norfolk Southern Corporation 4,879,623 4,957,357

14,080,513 14,761,934

Consumer Discretionary – 2.7%55,990 Best Buy Co., Inc. 2,365,015 2,013,91381,320 McGraw-Hill Companies, Inc., The 2,812,668 2,430,303

113,690 Staples, Inc. 2,561,452 2,303,42446,520 Walt Disney Company, The 1,532,900 1,557,016

9,272,035 8,304,656

Consumer Staples – 3.4%44,740 Colgate-Palmolive Company 3,825,429 3,745,26583,290 CVS Caremark Corporation 3,167,755 2,594,59143,150 PepsiCo, Inc. 2,873,727 2,795,28528,890 Wal-Mart Stores, Inc. 1,601,713 1,476,378

11,468,624 10,611,519

Health Care – 4.0%33,670 Johnson & Johnson 2,376,914 2,114,20050,740 Medtronic, Inc. 2,376,149 1,957,28858,520 Merck & Co., Inc. 2,245,283 2,174,622

149,960 Pfizer Inc. 2,882,301 2,272,72582,910 UnitedHealth Group Incorporated 2,726,606 2,502,51128,700 WellPoint Inc. 1,815,259 1,493,529

14,422,512 12,514,875

Financials – 5.5%181,680 Bank of America Corporation 3,548,369 2,774,714

19,200 Goldman Sachs Group, Inc., The 3,552,874 2,677,27985,980 JPMorgan Chase & Co. 3,825,761 3,345,92793,130 Lincoln National Corporation 2,640,499 2,401,91768,090 MetLife, Inc. 3,796,691 2,733,014

121,920 Wells Fargo & Company 3,506,777 3,314,305

20,870,971 17,247,156


287,280 Cisco Systems, Inc. 8,149,557 6,507,9124,130 Google Inc. 2,608,440 1,954,113

93,980 Hewlett-Packard Company 5,101,799 4,321,930240,950 Microsoft Corporation 6,708,573 5,894,018276,590 Oracle Corporation 6,922,557 6,309,870

31,407,594 26,782,785

Utilities – 1.0%78,590 Dominion Resources, Inc. 3,130,764 3,235,543


TOTAL EQUITIES 324,874,376 303,846,927


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AverageCost ($)

FairValue ($)




Jul. 15, 2010 to Aug. 17, 2010 1,971,593 2,020,619

10,346,680 10,396,638


Currency Forward Contracts – (0.4)% (1,403,123)OTHER ASSETS, LESS LIABILITIES – 0.4% 1,338,451

NET ASSETS – 100.0% 314,178,893





June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 34,618,789 U.S. Dollar 33,331,847 35,510,410 (891,621)Sep. 30, 2010 Canadian Dollar 19,640,487 U.S. Dollar 18,919,648 20,156,233 (515,746)Sep. 30, 2010 U.S. Dollar 1,881,291 Canadian Dollar 2,000,000 1,996,596 4,244

(1,403,123)





Canadian EquitiesEnergy 17.5 18.3Materials 10.3 11.1Industrials 4.1 5.0Consumer Discretionary 2.3 5.0Consumer Staples 2.7 1.4Financials 19.0 16.4Information Technology 2.1 3.3Telecommunication Services 3.3 4.2Utilities 1.1 –Index Units 0.1 –

United States Equities 34.2 33.0Money Market Instruments 3.3 0.7Currency Forward Contracts (0.4) 0.2


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June 30, 2010 December 31, 2009

U.S. Dollar 55,701,331 17.7 59,995,986 15.1



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009

Impact on Net Assets ($)Impact on Net Assets

(%)

S&P/TSX Composite Index – 60%,S&P 500 Index – 40%




June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $ 36,628 $23,992Currency forward contracts 1,407,367 –

$1,443,995 $23,992




303,621,216 10,396,638 – 314,017,854

Options (Puts) 225,711 – – 225,711Currency Forward Contracts – (1,403,123) – (1,403,123)

225,711 (1,403,123) – (1,177,412)

$303,846,927 $ 8,993,515 $ – $312,840,442


Equities $ 386,895,151 $ – $ – $ 386,895,151Money Market Instruments – 2,674,197 – 2,674,197Currency Forward Contracts – 853,875 – 853,875

$386,895,151 $3,528,072 $ – $390,423,223



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Scotia Cyclical Opportunities Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $75,092,459 $82,592,045Cash 274,176 113,193Accrued investment income 36,115 67,780Receivable for securities sold 11,662,080 526

87,064,830 82,773,544

LIABILITIESPayable for securities purchased 4,251,118 –Accrued expenses 14,962 9,428Payable for currency forward contracts 124,053 –

4,390,133 9,428

Net Assets $82,674,697 $82,764,116






511,094 772,096

EXPENSESManagement fees (note 5) 42,837 32,477Audit fees 10,263 12,767Custodian fees 4,520 1,316Filing fees 6,990 6,738Legal fees 1,602 1,769Unitholder reporting costs 3,556 3,703Unitholder administration, service fees and GST 20,763 20,208Overdraft charges 558 1,418

91,089 80,396


Net realized gain (loss) on investments sold 1,200,310 (1,589,397)Net realized gain (loss) on currency forwards 979,330 79,313Net realized gain (loss) on foreign exchange 183,510 578,561Transaction costs (1,237,069) (615,894)Change in unrealized appreciation (depreciation) of investments (6,085,600) 4,525,390Change in unrealized appreciation (depreciation) of currency forwards (124,579) (43,378)



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* $(4,664,093) $ 3,626,295




INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* (4,664,093) 3,626,295


Manager Class Units* 14,510,108 32,028,896Reinvested distributions

Manager Class Units* – (595)Payments on redemption


4,574,674 24,745,049

INCREASE (DECREASE) IN NET ASSETSManager Class Units* (89,419) 28,371,344

NET ASSETS – END OF PERIODManager Class Units* $82,674,697 $80,953,307



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As at June 30, 2010


AverageCost ($)

FairValue ($)


50,000 Angle Energy Inc. Subscription Receipt* 395,000 356,500100,000 Bankers Petroleum Ltd. 784,060 699,000

(300) Bankers Petroleum Ltd., Written Call Options $8.00 Jul. 16, 2010 (15,000) (4,500)(100) Bankers Petroleum Ltd., Written Put Options $7.00 Jul. 16, 2010 (4,900) (3,000)(300) Canadian Natural Resources Limited, Written Call Options $32.50

Jul. 16, 2010 (53,966) (52,646)90,000 Canadian Natural Resources Ltd. 3,275,697 3,179,70070,000 Cenovus Energy Inc. 1,941,019 1,918,000

100,000 Crew Energy Inc. 1,664,659 1,504,000480,000 GasFrac Energy Services Inc. Subscription Receipt* 2,400,000 2,400,00030,000 Pacific Rubiales Energy Corporation 600,841 715,800

700,000 Southern Pacific Resource Corp 733,180 700,00080,000 Suncor Energy, Inc. 2,572,337 2,506,400

(200) Suncor Energy, Inc., Written Call Options $31.00 Jul. 16, 2010 (30,796) (8,934)50,000 Talisman Energy Inc. 883,067 805,000

15,145,198 14,715,320

Materials – 9.3%30,000 Agnico-Eagle Mines Limited 1,925,892 1,937,400

(50) Agnico-Eagle Mines Limited, Written Call Options $60.00 Jul. 16,2010 (17,930) (12,922)

(250) Allied Nevada Gold Corporation, Written Call Option $21.00 Jul. 16,2010 (23,250) (21,250)

(300) FNX Mining Company Inc., Written Put Options $11.00 Oct. 15, 2010 (27,900) (87,450)25,000 Fortress Paper Limited 587,500 525,25025,000 Goldcorp, Inc. 1,123,587 1,165,25025,000 IAMGOLD Corporation 409,864 469,000

(125) IAMGOLD Corporation, Written Call Options $19.00 Jul. 16, 2010 (9,375) (8,000)100,000 Lundin Mining Corporation 300,000 301,000

(500) Lundin Mining Corporation, Written Put Options $3.00 Aug. 20, 2010 (13,750) (10,000)80,000 Quadra FNX Mining Ltd. 934,755 778,400

450,000 Romarco Minerals, Inc. 929,721 796,50020,000 Teck Resources Ltd., Class B 649,722 629,600

(200) Vengold Inc., Written Call Options $9.00 Aug. 20, 2010 (10,800) (12,000)160,000 Ventana Gold Corporation 1,684,260 1,265,600

(600) Ventana Gold Corporation, Written Call Options $10.00 Jul. 16, 2010 (37,800) (12,000)

8,404,496 7,704,378

Industrials – 3.5%50,000 Canadian Pacific Railway Limited 2,878,250 2,853,000

Consumer Discretionary – 4.9%25,000 Magna International Inc. 1,763,406 1,753,250

(100) Magna International Inc., Writte Put Options $60.00 Aug. 20, 2010 (11,268) (14,358)60,000 Thomson Reuters Corporation 2,354,853 2,286,000

4,106,991 4,024,892

Financials – 13.3%50,000 Bank of Nova Scotia, The 2,573,440 2,452,00033,791 Power Corporation of Canada 978,995 862,00870,000 Royal Bank of Canada 3,747,924 3,549,00060,000 Toronto-Dominion Bank, The 4,267,402 4,138,803

11,567,761 11,001,811


(50) Research In Motion Limited, Written Call Options $52.50Jul. 16, 2010 (9,332) (3,563)

1,893,618 1,566,337


Numberof Shares/Number ofContracts/FaceValue ($) Issuer

AverageCost ($)

FairValue ($)

FOREIGN EQUITIES – 27.5%United States – 26.2%Index Fund – 0.2%

400 S&P 500 Deposit Receipts, Put Options $107.00 Jul. 16, 2010 169,100 216,538

Energy – 1.9%(150) Cenovus Energy Inc., Written Put Options $30.00 Jul. 16, 2010 (23,583) (63,813)

30,000 Hess Corporation 1,689,501 1,606,169

1,665,918 1,542,356

Materials – 1.2%50,000 Allied Nevada Gold Corporation 1,025,000 1,048,000

Industrials – 3.7%35,000 Raytheon Company 1,995,906 1,801,27640,000 Republic Services, Inc. 1,209,392 1,264,345

3,205,298 3,065,621

Consumer Discretionary – 2.7%30,000 Bayerische Motoren Werke ADR 524,145 514,33135,000 Cablevision Systems Corporation 892,446 893,752

(100) Cablevision Systems Corporation, Written Call Options $25.00Jul. 16, 2010 (10,935) (6,381)

20,000 Yum! Brands, Inc. 862,330 830,417

2,267,986 2,232,119

Consumer Staples – 2.3%30,000 Hansen Natural Corporation 1,211,302 1,247,86010,000 PepsiCo, Inc. 661,973 647,806

1,873,275 1,895,666

Health Care – 2.9%15,000 Amgen Inc. 879,154 839,13950,000 Pfizer Inc. 796,907 757,77715,000 WellPoint Inc. 785,007 780,590

2,461,068 2,377,506

Financials – 3.4%40,000 MetLife, Inc. 1,689,791 1,605,53020,000 PNC Financial Services Group, Inc., The 1,256,786 1,201,595

2,946,577 2,807,125

Information Technology – 7.9%100,000 EMC Corporation 1,912,401 1,944,16420,000 Intel Corporation 434,314 413,50780,000 Microsoft Corporation 2,185,149 1,956,926

(100) Research In Motion Limited, Written Put Options $55.00 Jul. 16, 2010 (16,113) (63,281)30,000 Visa Inc. 2,296,047 2,257,059

(100) Visa Inc., Written Call Options $80.00 Jul. 16, 2010 (24,038) (1,489)

6,787,760 6,506,886


China – 1.3%20,000 China Mobile Limited 1,071,349 1,050,997


TOTAL EQUITIES 67,469,645 64,608,552




Jul. 16, 2010 to Sep. 15, 2010 3,555,258 3,620,334


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Scotia Cyclical Opportunities Fund (Unaudited – Continued)



88


AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS (cont’d)2,605,000 Export Development Canada Commercial Paper

(U.S.) 0.12% to 0.13% due from Aug. 17, 2010 2,684,497 2,770,086

TOTAL MONEY MARKET INSTRUMENTS 10,332,904 10,483,907


Currency Forward Contracts – (0.2)% (124,053)OTHER ASSETS, LESS LIABILITIES – 9.3% 7,706,291

NET ASSETS – 100.0% 82,674,697

* This security is not actively trade and considered illiquid.





June 30, 2010 ($)


(Depreciation)Jul. 30, 2010 Canadian Dollar 8,413,440 U.S. Dollar 8,000,000 8,518,795 (105,355)Jul. 30, 2010 Canadian Dollar 2,111,000 U.S. Dollar 2,000,000 2,129,699 (18,698)

(124,053)





Canadian EquitiesEnergy 17.8 13.6Materials 9.3 16.3Industrials 3.5 1.6Consumer Discretionary 4.9 3.8Consumer Staples – 0.6Financials 13.3 13.7Information Technology 1.9 3.8Telecommunication Services – 3.9

Foreign Equities 27.5 36.7Currency Forward Contracts (0.2) 0.0Money Market Instruments 12.7 5.8


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89







June 30, 2010 December 31, 2009

U.S. Dollar 17,515,708 21.2 27,091,800 32.7



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P/TSX Composite Index – 60%,S&P 500 Index – 40%



June 30, 2010Less than 3 months

December 31, 2009Less than 3 months


$4,390,133 $9,428



Equities $ 62,021,101 $ 2,756,500 $ – $ 64,777,601Options (Written Puts) (241,902) – – (241,902)Money Market Instruments – 10,483,907 – 10,483,907

61,779,199 13,240,407 – 75,019,606

Options (Puts/Written Calls) 81,787 – – 81,787Currency Forward Contracts – (124,053) – (124,053)

81,787 (124,053) – (42,266)

$61,860,986 $13,116,354 $ – $74,977,340


Equities $ 78,160,041 $ – $ – $ 78,160,041Options (Written Puts) (123,327) – – (123,327)Money Market Instruments – 4,837,486 – 4,837,486Currency Forward Contracts – 526 – 526

78,036,714 4,838,012 – 82,874,726


$77,754,559 $4,838,012 $ – $82,592,571



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90


Scotia U.S. Equity Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $502,706,027 $390,931,664Cash 235,117 135,152Accrued investment income 307,724 221,301

503,248,868 391,288,117

LIABILITIESPayable for securities purchased – 10,267,269Accrued expenses 47,475 16,415Payable for currency forward contracts 6,333,770 –

6,381,245 10,283,684

Net Assets $496,867,623 $381,004,433

NET ASSETS PER CLASSClass I Units $ 54,257,041 $ 28,552,830Manager Class Units $442,610,582 $352,451,603




2010 2009INVESTMENT INCOMEDividends $ 4,261,167 $ 1,045,591Interest 13,833 4,465Securities lending 450 179Foreign withholding taxes/Tax reclaims (641,315) (158,987)

3,634,135 891,248

EXPENSESManagement fees (note 5) 214,098 48,942Audit fees 10,263 10,468Custodian fees 4,906 4,462Filing fees 7,665 7,577Legal fees 1,602 1,770Unitholder reporting costs 3,556 3,702Unitholder administration, service fees and GST 29,559 21,242Overdraft charges 2,556 3,722


274,205 101,869


Net realized gain (loss) on investments sold 1,522,333 (15,925,652)Net realized gain (loss) on currency forwards 14,201,478 –Net realized gain (loss) on foreign exchange 356,195 (283,964)Transaction costs (700,136) (673,641)Change in unrealized appreciation (depreciation) of investments (54,977,175) 9,343,466Change in unrealized appreciation (depreciation) of currency forwards (6,333,770) –

Net gain (loss) on investments and transaction costs (45,931,075) (7,539,791)

Increase (decrease) in Net Assets from operations $(42,571,145) $ (6,750,412)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units** $ (4,555,145) $ 133,724Manager Class Units* $(38,016,000) $ (6,884,136)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass I Units** $ (0.78) $ 0.29Manager Class Units* $ (0.67) $ (0.51)


2010 2009NET ASSETS – BEGINNING OF PERIODClass I Units** $ 28,552,830 $ –Manager Class Units* 352,451,603 110,048,393

381,004,433 110,048,393

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass I Units** (4,555,145) 133,724Manager Class Units* (38,016,000) (6,884,136)

(42,571,145) (6,750,412)



Payments on redemptionClass I Units** (82,126) (127,563)Manager Class Units* (64,406,609) (43,072,899)

158,434,335 1,890,579

INCREASE (DECREASE) IN NET ASSETSClass I Units** 25,704,211 8,874,003Manager Class Units* 90,158,979 (13,733,836)

115,863,190 (4,859,833)


$496,867,623 $105,188,560




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91

As at June 30, 2010


AverageCost ($)

FairValue ($)


480,470 Chesapeake Energy Corporation 12,971,700 10,690,170168,390 Chevron Corporation 13,404,158 12,145,929225,390 ConocoPhillips 12,212,535 11,753,121145,550 Occidental Petroleum Corporation 12,333,832 11,942,763184,510 Schlumberger Limited 10,684,263 10,851,798

61,606,488 57,383,781

Materials – 1.2%98,500 Freeport-McMoRan Copper & Gold Inc., Class B 7,502,351 6,193,374

Industrials – 13.6%119,570 3M Co. 9,855,818 10,039,938225,390 Boeing Company, The 14,838,774 15,037,187735,970 General Electric Company 12,108,880 11,263,609108,840 Lockheed Martin Corporation 8,863,674 8,616,910403,050 Norfolk Southern Corporation 21,979,894 22,736,264

67,647,040 67,693,908

Consumer Discretionary – 7.5%256,770 Best Buy Co., Inc. 10,052,058 9,235,800372,930 McGraw-Hill Companies, Inc., The 13,243,610 11,145,265473,730 Staples, Inc. 12,284,782 9,598,039213,350 Walt Disney Company, The 7,054,764 7,140,786

42,635,214 37,119,890

Consumer Staples – 9.8%205,180 Colgate-Palmolive Company 17,432,830 17,175,983381,970 CVS Caremark Corporation 13,637,770 11,898,858197,850 PepsiCo, Inc. 12,857,948 12,816,850132,470 Wal-Mart Stores, Inc. 7,415,462 6,769,671

51,344,010 48,661,362

Health Care – 11.6%154,420 Johnson & Johnson 10,260,072 9,696,311232,730 Medtronic, Inc. 10,585,933 8,977,524268,410 Merck & Co., Inc. 10,315,092 9,974,204687,800 Pfizer Inc. 12,877,953 10,423,983380,250 UnitedHealth Group Incorporated 12,773,565 11,477,261


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Health Care (cont’d)

131,610 WellPoint Inc. 8,192,862 6,848,899

65,005,477 57,398,182

Financials – 14.9%607,820 Bank of America Corporation 11,742,575 9,282,95287,690 Goldman Sachs Group, Inc., The 15,487,812 12,227,637

368,290 JPMorgan Chase & Co. 16,106,351 14,332,072412,450 Lincoln National Corporation 11,356,834 10,637,503312,280 MetLife, Inc. 11,939,851 12,534,376559,190 Wells Fargo & Company 16,195,335 15,201,166

82,828,758 74,215,706


1,317,530 Cisco Systems, Inc. 33,363,354 29,846,73118,930 Google Inc. 11,003,093 8,956,744

431,020 Hewlett-Packard Company 22,750,071 19,821,6481,105,050 Microsoft Corporation 33,403,317 27,031,2681,268,510 Oracle Corporation 32,163,779 28,938,622

141,240,172 122,828,333

Utilities – 2.3%279,050 Dominion Resources, Inc. 11,354,598 11,488,461

TOTAL EQUITIES 531,164,108 482,982,997

MONEY MARKET INSTRUMENTS – 4.0%3,210,000 Canadian Wheat Board, The Commercial Paper

(U.S.) 0.14% to 0.18% due fromSep. 10, 2010 to Sep. 15, 2010 3,361,418 3,412,852


Aug. 17, 2010 to Sep. 16, 2010 16,130,938 16,310,178

19,492,356 19,723,030


Currency Forward Contracts – (1.3)% (6,333,770)OTHER ASSETS, LESS LIABILITIES – 0.1% 495,366

NET ASSETS – 100.0% 496,867,623





June 30, 2010 ($)


(Depreciation)Sep. 30, 2010 Canadian Dollar 167,336,490 U.S. Dollar 161,194,962 171,730,637 (4,394,147)Sep. 30, 2010 Canadian Dollar 75,737,825 U.S. Dollar 72,922,296 77,688,484 (1,950,659)Sep. 30, 2010 U.S. Dollar 4,891,355 Canadian Dollar 5,200,000 5,191,150 11,036

(6,333,770)





Energy 11.6 11.8Materials 1.2 2.4Industrials 13.6 11.8Consumer Discretionary 7.5 6.3Consumer Staples 9.8 9.9Health Care 11.6 12.9Financials 14.9 12.3Information Technology 24.7 23.5Telecommunication Services – 3.1Utilities 2.3 3.1Currency Forward Contracts (1.3) –Money Market Instruments 4.0 5.5


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Scotia U.S. Equity Fund (Unaudited – Continued)



92

Scotia U.S. Equity Fund (Unaudited – Continued)







June 30, 2010 December 31, 2009

U.S. Dollar 258,575,035 52.0 390,960,933 102.6

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$25,857,504 approximately 5.2% of total net assets, (December 31, 2009 –$39,096,093, approximately 10.3% of total net assets). In practice, actualresults may differ from this sensitivity analysis and the difference could bematerial.


BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P 500 Index 89,436,172 67,056,780 18.0 17.6


June 30, 2010Less than 3 months

December 31, 2009Less than 3 months

Accounts payable and accrued liabilities $ 47,475 $10,283,684Currency forward contracts 6,344,806 –

$6,392,281 $10,283,684




482,982,997 19,723,030 – 502,706,027

Currency Forward Contracts – (6,333,770) – (6,333,770)

$482,982,997 $13,389,260 $ – $496,372,257



$370,063,999 $20,867,665 $ – $390,931,664



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93

Scotia U.S. Growth Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $26,479,719 $30,902,460Cash 62,058 64,729Accrued investment income 17,758 32,886Receivable for securities sold 894,934 –Subscriptions receivable 1,753 21,577

27,456,222 31,021,652

LIABILITIESPayable for securities purchased 356,767 –Redemptions payable 6,798 29,500Accrued expenses 60,506 36,009

424,071 65,509

Net Assets $27,032,151 $30,956,143





2010 2009INVESTMENT INCOMEDividends $ 278,669 $ 322,615Interest 210 4,540Securities lending 22 44Foreign withholding taxes/Tax reclaims (41,556) (49,352)

237,345 277,847

EXPENSESManagement fees (note 5) 293,558 309,062Audit fees 6,617 5,721Independent Review Committee fees 635 726Custodian fees 3,269 2,053Filing fees 8,884 9,290Legal fees 3,043 3,359Unitholder reporting costs 13,911 18,816Unitholder administration, service fees and GST 116,238 143,809Overdraft charges 21 113


385,328 395,564


Net realized gain (loss) on investments sold 516,516 (5,521,590)Net realized gain (loss) on foreign exchange 13,703 (106,011)Transaction costs (114,152) (201,139)Change in unrealized appreciation (depreciation) of investments (2,751,704) 3,588,625


Increase (decrease) in Net Assets from operations $(2,483,620) $(2,357,832)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(2,483,049) $(2,357,334)Class F Units $ (571) $ (498)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.52) $ (0.46)Class F Units $ (0.51) $ (0.44)


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $30,948,868 $33,579,208Class F Units 7,275 7,486

30,956,143 33,586,694

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (2,483,049) (2,357,334)Class F Units (571) (498)

(2,483,620) (2,357,832)


Class A Units 1,179,882 1,322,176Payments on Redemptions

Class A Units (2,620,254) (1,651,531)

(1,440,372) (329,355)

INCREASE (DECREASE) IN NET ASSETSClass A Units (3,923,421) (2,686,689)Class F Units (571) (498)

(3,923,992) (2,687,187)


$27,032,151 $30,899,507


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As at June 30, 2010


AverageCost ($)

FairValue ($)


7,700 Chevron Corporation 633,890 555,3999,500 ConocoPhillips 500,236 495,384

25,800 El Paso Corporation 291,956 304,5799,624 Exxon Mobil Corporation 719,293 583,0186,100 Hess Corporation 394,205 326,5887,200 National-Oilwell Varco Inc. 313,839 253,0059,900 Rowan Companies, Inc. 282,663 231,0098,700 Valero Energy Corporation 160,213 166,274

3,296,295 2,915,256

Materials – 4.2%4,800 Cliffs Natural Resources Inc. 274,860 240,7536,600 Dow Chemical Company, The 195,633 166,5009,000 E.I. du Pont de Nemours and Company 320,776 331,0932,500 Eastman Chemical Company 160,457 141,8774,040 Freeport-McMoRan Copper & Gold Inc., Class B 298,536 254,023

1,250,262 1,134,246

Industrials – 9.5%3,494 3M Company 242,912 293,3814,900 Eaton Corporation 337,034 341,033

27,640 General Electric Company 457,066 423,0155,850 Illinois Tool Works Inc. 295,487 256,8345,150 Norfolk Southern Corporation 293,993 290,5145,580 Northrop Grumman Corporation 321,708 323,0795,450 Parker-Hannifin Corporation 332,826 321,465

25,200 Southwest Airlines Co. 327,679 297,495

2,608,705 2,546,816

Consumer Discretionary – 11.5%8,450 Big Lots, Inc. 312,155 288,392

12,050 D.R. Horton, Inc. 147,281 125,9798,300 Family Dollar Stores, Inc. 332,192 332,706

14,200 GameStop Corporation 285,136 283,47112,300 Home Depot Inc., The 409,310 366,67811,400 Johnson Controls, Inc. 356,280 325,54113,170 Limited Brands, Inc. 287,733 308,85213,300 Macy’s, Inc. 281,608 252,91615,300 Mattel, Inc. 354,328 344,321

1,894 McDonald’s Corporation 122,428 132,64510,300 Viacom Inc., Class B 353,200 343,534

3,241,651 3,105,035

Consumer Staples – 11.0%5,270 Clorox Company, The 348,099 348,4005,850 Hershey Company, The 248,854 298,0847,900 PepsiCo, Inc. 509,145 511,7678,143 Procter & Gamble Company, The 521,229 518,762

11,800 Sysco Corporation 352,903 358,54920,900 Tyson Foods, Inc. 386,128 363,875

6,150 Wal-Mart Stores, Inc. 315,527 314,2866,850 Whole Foods Markets, Inc. 249,015 262,271

2,930,900 2,975,994

Health Care – 11.3%9,700 AmerisourceBergen Corporation 289,027 327,5463,760 Becton, Dickinson and Company 301,475 270,1287,800 CIGNA Corporation 289,449 257,4975,200 DaVita, Inc. 319,146 345,3214,900 Hospira, Inc. 267,336 299,1334,116 Johnson & Johnson 272,155 258,4518,329 Merck & Co., Inc. 296,668 309,508

21,600 Pfizer Inc. 342,744 327,3608,000 St. Jude Medical, Inc. 329,545 306,982


AverageCost ($)

FairValue ($)


2,400 Thoratec Corporation 73,293 109,0694,750 WellPoint Inc. 265,493 247,187

3,046,331 3,058,182

Financials – 15.1%6,100 Aflac, Inc. 311,323 276,7639,800 American Express Company 430,678 413,367

23,250 Bank of America Corporation 405,584 355,08691,300 Citigroup Inc. 364,433 364,132

3,000 Goldman Sachs Group, Inc., The 516,404 418,32510,810 JPMorgan Chase & Co. 443,166 420,673

4,100 M&T Bank Corporation 334,427 370,0369,350 MetLife, Inc. 401,711 375,2935,800 Prudential Financial, Inc. 315,656 330,9446,400 Torchmark Corporation 334,606 337,000


4,375,386 4,085,693

Information Technology – 17.8%3,243 Apple Inc. 655,895 867,375

28,100 Cisco Systems, Inc. 692,049 636,565600 Google Inc. 316,063 283,890

17,846 Intel Corporation 359,882 368,9723,600 International Business Machines Corporation 473,947 472,3947,450 Lexmark International, Inc. 262,619 261,631

20,205 Microsoft Corporation 566,980 494,2469,550 Novellus Systems, Inc. 232,090 257,477

21,680 Oracle Corporation 519,096 494,5889,600 SanDisk Corporation 291,811 428,516

24,000 Teradyne, Inc. 262,971 248,870

4,633,403 4,814,524

Telecommunication Services – 3.4%3,350 American Tower Corporation 155,786 158,334

19,370 AT&T Inc. 546,707 497,51247,300 Qwest Communications International Inc. 220,892 263,602

923,385 919,448

Utilities – 3.3%7,000 Integrys Energy Group, Inc. 314,987 325,5625,800 Questar Corporation 282,902 280,547

17,800 TECO Energy, Inc. 284,780 284,914

882,669 891,023

Index Units – 0.1%140 S&P 500 Deposit Receipts, Put Options $104.00 Jul. 16, 2010 40,055 49,285

(140) S&P 500 Deposit Receipts, Written Put Options $97.00 Jul. 16, 2010 (11,233) (15,783)

28,822 33,502



NET ASSETS – 100.0% 27,032,151


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Scotia U.S. Growth Fund (Unaudited – Continued)



95




Energy 10.8 9.8Materials 4.2 5.0Industrials 9.5 10.1Consumer Discretionary 11.5 9.6Consumer Staples 11.0 11.3Health Care 11.3 13.8Financials 15.1 12.0Information Technology 17.8 19.6Telecommunication Services 3.4 4.3Utilities 3.3 3.3Index Units 0.1 –Money Market Instruments – 1.0







June 30, 2010 December 31, 2009

U.S. Dollar 26,486,029 98.0 30,954,161 100.0



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P 500 Index 4,811,723 5,572,106 17.8 18.0



June 30, 2010 December 31, 2009




Equities $ 26,446,217 $ – $ – $ 26,446,217Options (Written Puts) (15,783) – – (15,783)

26,430,434 – – 26,430,434

Options (Puts) 49,285 – – 49,285

$26,479,719 $ – $ – $26,479,719


Equities $ 30,582,189 $ – $ – $ 30,582,189Money Market Instruments – 320,271 – 320,271

$30,582,189 $320,271 $ – $30,902,460



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Scotia U.S. Growth Fund (Unaudited – Continued)



96

Scotia U.S. Value Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $79,034,384 $77,874,710Cash 2,851,464 3,165,076Accrued investment income 128,721 91,078Receivable for securities sold 37,611 –Subscriptions receivable 21,831 6,556

82,074,011 81,137,420

LIABILITIESPayable for securities purchased – 98,866Redemptions payable 5,139 12,532Accrued expenses 39,761 22,328

44,900 133,726

Net Assets $82,029,111 $81,003,694





2010 2009INVESTMENT INCOMEDividends $ 824,288 $ 1,053,412Interest 222 1,133Foreign withholding taxes/Tax reclaims (119,718) (148,406)

704,792 906,139

EXPENSESManagement fees (note 5) 165,359 152,836Audit fees 10,263 8,695Independent Review Committee fees 272 312Custodian fees 1,048 960Filing fees 8,134 8,644Legal fees 2,219 2,436Unitholder reporting costs 7,986 10,197Unitholder administration, service fees and GST 65,953 80,820


247,106 215,255


Net realized gain (loss) on investments sold 322,268 (6,256,096)Net realized gain (loss) on foreign exchange 79,667 (409,362)Transaction costs (33,795) (51,905)Change in unrealized appreciation (depreciation) of investments (516,935) 8,507,845

Net gain (loss) on investments and transaction costs (148,795) 1,790,482

Increase (decrease) in Net Assets from operations $ 308,891 $ 2,481,366

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (88,104) $ 225,065Class I Units $ 396,995 $ 2,256,301

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.03) $ 0.08Class I Units $ 0.04 $ 0.18


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $16,745,434 $16,369,477Class I Units 64,258,260 73,129,217

81,003,694 89,498,694

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (88,104) 225,065Class I Units 396,995 2,256,301

308,891 2,481,366


Class A Units 808,131 682,233Class I Units 2,695,884 6,171,129

Payments on redemptionClass A Units (1,760,300) (994,264)Class I Units (1,027,189) (1,117,848)

716,526 4,741,250

INCREASE (DECREASE) IN NET ASSETSClass A Units (1,040,273) (86,966)Class I Units 2,065,690 7,309,582

1,025,417 7,222,616


$82,029,111 $96,721,310


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42,100 Baker Hughes Incorporated 1,523,956 1,860,41538,900 ConocoPhillips 3,063,456 2,028,46836,000 Hess Corporation 2,036,326 1,927,402

6,623,738 5,816,285

Materials – 2.1%68,000 Dow Chemical Company, The 2,000,962 1,715,459

Industrials – 9.6%30,000 Boeing Company, The 2,911,777 2,001,48936,400 Deere & Company 2,234,908 2,153,61035,000 Northrop Grumman Corporation 2,673,235 2,026,48230,000 SPX Corporation 1,733,294 1,683,701

9,553,214 7,865,282

Consumer Discretionary – 10.6%62,480 Gentex Corporation 957,498 1,192,78569,000 Home Depot Inc., The 1,834,587 2,056,97441,300 J.C. Penney Company, Inc. 1,082,991 943,49924,000 Polo Ralph Lauren Corporation 1,271,539 1,861,80369,000 Time Warner Inc. 2,000,959 2,120,81997,000 Warner Music Group Corp. 1,801,232 501,377

8,948,806 8,677,257

Consumer Staples – 15.7%96,000 ConAgra Foods, Inc. 2,241,856 2,379,96322,300 Diageo PLC ADR 1,945,415 1,487,53642,000 H.J. Heinz Company 1,961,648 1,928,80645,000 Hershey Company, The 1,898,308 2,292,95483,000 L’Oreal SA 1,722,620 1,719,58566,500 Safeway Inc. 2,037,079 1,388,34957,000 Sysco Corporation 1,517,472 1,731,976

13,324,398 12,929,169

Health Care – 9.5%40,000 Abbott Laboratories 2,038,382 1,988,83346,900 Baxter International Inc. 2,723,024 2,025,64144,700 Eli Lilly and Company 2,527,753 1,592,60835,600 Hospira, Inc. 1,621,875 2,173,294

8,911,034 7,780,376

Financials – 14.9%148,000 Banco Santander SA ADR 1,972,983 1,648,030115,000 Bank of America Corporation 2,669,854 1,756,34159,030 Charles Schwab Corporation, The 1,258,781 889,60939,000 East West Bancorp. Inc. 710,570 632,13059,500 JPMorgan Chase & Co. 3,237,427 2,315,45320,900 M&T Bank Corporation 1,120,639 1,886,279

346,000 Mitsubishi UFJ Financial Group, Inc. ADR 3,124,872 1,670,66262,000 Zions Bancorporation 2,635,572 1,421,664

16,730,698 12,220,168

Information Technology – 19.8%12,700 Apple Inc. 1,385,751 3,396,752

133,000 EMC Corporation 1,856,628 2,585,73821,600 International Business Machines Corporation 2,332,897 2,834,36151,000 Intuit Inc. 1,603,022 1,884,32910,760 Molex Incorporated 308,428 176,46497,100 Oracle Corporation 2,041,071 2,215,15068,000 Texas Instruments Incorporated 2,270,207 1,682,19167,000 Vodafone Group PLC ADR 1,919,839 1,472,183

13,717,843 16,247,168


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Utilities – 7.0%

50,600 Dominion Resources, Inc. 2,452,545 2,083,19736,300 NextEra Energy, Inc. 1,940,896 1,881,30737,600 Questar Corporation 1,582,025 1,818,716

5,975,466 5,783,220



NET ASSETS – 100.0% 82,029,111




Energy 7.1 4.8Materials 2.1 2.7Industrials 9.6 9.4Consumer Discretionary 10.6 9.0Consumer Staples 15.7 16.0Health Care 9.5 7.3Financials 14.9 14.8Information Technology 19.8 24.9Utilities 7.0 7.2


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98







June 30, 2010 December 31, 2009

U.S. Dollar 81,864,522 99.8 80,958,893 99.9



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P 500 Index 17,226,113 17,172,783 21.0 21.2

Credit risk (note 3)The table below summarizes the credit rating of the bond and debenturesinstruments, excluding cash and money market instruments but includingpreferred shares, held by the Fund.







June 30, 2010 December 31, 2009

Unrated – – 100.0 0.8



June 30, 2010 December 31, 2009




Equities $79,034,384 $ – $ – $79,034,384


Equities $77,874,710 $ – $ – $77,874,710



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99

Scotia International Equity Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $93,411,275 $109,609,809Cash 1,559,070 1,169,689Accrued investment income 224,531 74,501Receivable for securities sold 2,672,630 419,287Subscriptions receivable 23,387 393,797Receivable for currency forward contracts – 15,652

97,890,893 111,682,735

LIABILITIESPayable for securities purchased 2,353,704 322,614Redemptions payable 2,430,239 49,516Accrued expenses 41,681 19,981Payable for currency forward contracts 29,981 –

4,855,605 392,111

Net Assets $93,035,288 $111,290,624





2010 2009INVESTMENT INCOMEDividends $ 2,120,294 $ 2,401,762Interest 20,424 6,984Securities lending – 697Foreign withholding taxes/Tax reclaims (300,155) (241,979)

1,840,563 2,167,464

EXPENSESManagement fees (note 5) 157,562 145,909Audit fees 10,263 9,681Custodian fees 54,709 69,842Filing fees 7,249 8,014Legal fees 1,602 1,769Unitholder reporting costs 3,556 3,703Unitholder administration, service fees and GST 29,008 29,154Overdraft charges 401 43,042

264,350 311,114Absorbed expenses – (3,424)

264,350 307,690


Net realized gain (loss) on investments sold (4,794,149) (51,335,107)Net realized gain (loss) on currency forwards 413,331 (5,877)Net realized gain (loss) on foreign exchange (74,952) 104,050Transaction costs (100,409) (110,404)Change in unrealized appreciation (depreciation) of investments (14,396,640) 46,272,957Change in unrealized appreciation (depreciation) of currency forwards (45,633) (138,859)


Increase (decrease) in Net Assets from operations $(17,422,239) $ (3,353,466)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* $(17,422,239) $ (3,353,466)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITManager Class Units* $ (1.24) $ (0.23)



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSManager Class Units* (17,422,239) (3,353,466)


Manager Class Units* 16,864,593 28,350,103Payments on redemption


(833,097) (42,357,290)

INCREASE (DECREASE) IN NET ASSETSManager Class Units* (18,255,336) (45,710,756)

NET ASSETS – END OF PERIODManager Class Units* $ 93,035,288 $ 99,613,835



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Scotia International Equity Fund (Unaudited – Continued)



AverageCost ($)

FairValue ($)

FOREIGN EQUITIES – 100.4%Australia – 3.4%

28,300 Australia and New Zealand Banking Group Limited 296,616 540,5903,900 BHP Billiton Limited 103,540 129,059

66,400 Boral Limited 342,194 284,01834,700 Challenger Financial Services Group Limited 144,435 107,975

485,800 Dexus Property Group 326,846 332,820107,000 Incitec Pivot Limited 318,989 258,14513,919 Macquarie Group Limited 544,365 455,78136,008 National Australia Bank Limited 1,126,750 740,09353,000 Telstra Corporation Limited 145,163 153,451

9,800 WorleyParsons Limited 272,677 192,683

3,621,575 3,194,615

Austria – 0.3%8,300 OMV AG 364,202 266,177

Belgium – 1.9%27,186 Anheuser-Busch InBev NV 1,148,132 1,389,523

8,100 KBC Groep SA NV 398,366 330,589

1,546,498 1,720,112

Brazil – 2.7%12,000 Banco do Brasil SA 104,355 174,292

2,300 Companhia de Bebidas das Americas, Preference 243,888 243,07124,070 Itau Unibanco Holding SA ADR 360,575 461,04819,100 Petroleo Brasileiro SA ADR 739,548 697,16838,500 Vale SA ADR 832,416 958,152

2,280,782 2,533,731

China – 0.7%14,800 Ajisen China Holdings Limited 18,001 17,485

121,000 Anta Sports Products Limited 243,286 231,696264,000 Bank of China Ltd., Class H 140,034 141,64942,000 China Green (Holdings) Limited 45,720 44,785

210,000 China Petroleum & Chemical Corporation 171,705 180,260

618,746 615,875

Denmark – 1.6%4,425 Carlsberg A/S Series B 352,040 357,980

19,500 Danske Bank AS 541,536 398,4984,990 Novo Nordisk AS, Class B 326,798 428,3165,958 Vestas Wind Systems AS 466,880 263,532

1,687,254 1,448,326

Finland – 0.6%66,500 Nokia Oyj 1,332,177 577,783

France – 8.5%14,348 BNP Paribas 1,264,549 815,19017,100 Bouygues SA 847,032 696,949

4,300 Bureau Veritas SA 245,485 246,3249,500 Cap Gemini SA 468,961 441,6514,100 Casino Guichard-Perrachon SA 318,939 329,452

10,000 Electricite de France SA 583,804 404,37426,400 France Telecom SA 715,253 484,745

235 Klepierre 7,346 6,8659,700 Lagardere SCA 863,349 319,8111,500 Pinault-Printemps-Redoute SA 200,684 196,966

20,607 Sanofi-Aventis 1,735,267 1,322,28315,405 SES Global SA FDR 363,626 340,483

9,800 Societe Generale 1,524,666 424,1957,100 Technip SA 572,109 430,1623,854 Vallourec SA 879,254 700,2001,636 Vinci SA 92,835 71,684

28,640 Vivendi 884,130 616,536

11,567,289 7,847,870

Germany – 7.4%9,000 Allianz SE 1,847,833 948,256


AverageCost ($)

FairValue ($)

FOREIGN EQUITIES (cont’d)Germany (cont’d)

12,300 Bayer AG 871,791 728,66415,400 Bayerische Motoren Werke AG 727,989 794,180

3,900 Celesio AG 101,193 90,7679,500 Deutsche Bank AG 1,059,681 570,426

27,700 E.ON AG 1,407,224 795,6029,700 Fresenius Medical Care AG & Co. KGaA 542,275 557,421

25,500 K+S AG 1,222,097 1,248,1832,350 Muenchener Rueckversicherungs-Gesellschaft AG 415,119 312,9014,320 RWE AG 386,841 300,124

10,800 ThyssenKrupp AG 368,664 283,3403,162 Volkswagen AG Non-voting 301,195 295,338

9,251,902 6,925,202

Hong Kong – 4.7%128,000 Chaoda Modern Agriculture (Holdings) Limited 132,861 133,03258,000 China Merchants Holdings International Company Limited 201,788 205,05773,163 Esprit Holdings Limited 512,229 419,62948,000 Great Eagle Holdings Limited 126,877 130,14327,000 Hang Lung Group Limited 147,014 154,708

180,000 Hang Lung Properties Limited 710,490 734,25222,700 Hong Kong Exchanges & Clearing Limited 378,951 376,46248,400 HSBC Holdings PLC Ord 565,090 471,566

100,000 Huabao International Holdings Limited 128,117 135,980240,000 Li & Fung Limited 1,222,205 1,142,641146,939 New World Development Company Limited 157,536 252,45362,000 Yanzhou Coal Mining Company Limited 142,665 126,83040,500 Yue Yuen Industrial (Holdings) Limited 101,496 133,819

4,527,319 4,416,572

Hungary – 0.1%6,000 OTP Bank PLC 170,445 128,729

Indonesia – 0.3%234,500 P.T. Bank Rakyat Indonesia (Persero) Tbk 239,291 252,046

Israel – 2.2%103,700 Israel Chemicals Limited 1,228,808 1,150,32616,900 Teva Pharmaceutical Industries Ltd. ADR 794,720 934,465

2,023,528 2,084,791

Italy – 3.7%32,000 Eni SpA 1,143,668 625,06729,800 Saipem SpA 921,295 963,675

375,400 Telecom Italia SpA 735,639 440,272259,000 Telecom Italia SpA, di Risp Non Conv. 417,930 251,13818,595 Tenaris SA 329,882 343,393

329,900 UniCredit SpA 997,760 779,200

4,546,174 3,402,745

Japan – 20.2%38,200 AEON Co., Ltd. 455,969 431,23020,100 Asahi Breweries, Ltd. 375,049 361,37610,100 Canon Inc. 460,792 400,512

4,600 Daito Trust Construction Co., Ltd 251,099 276,58671,000 DIC Corp. 122,261 115,80922,000 Dowa Holdings, Co., Ltd. 132,110 112,698

6,600 East Japan Railway Company 467,103 467,9443,200 Fast Retailing Co., Ltd. 503,514 513,7082,500 Hirose Electric Co. Ltd. 239,954 242,775

20,800 Honda Motor Co., Ltd. 735,948 642,48857,000 ITOCHU Corporation 398,131 472,693

505 Japan Tobacco Inc. 1,768,776 1,669,82812,200 JFE Holdings, Inc. 429,886 400,594

178 Jupiter Telecommunications Co., Ltd. 173,475 180,43034,600 JX Holdings, Inc. 198,308 179,882

54 KDDI Corporation 413,844 272,8221,000 Keyence Corporation 252,252 244,671


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FOREIGN EQUITIES (cont’d)Japan (cont’d)

7,000 KONAMI Corporation 137,110 117,34721,000 Konica Minolta Holdings, Inc. 228,319 214,94457,400 Mitsubishi Corporation 1,461,726 1,272,17336,000 Mitsubishi Gas Chemical Company, Inc. 217,024 185,550

104,000 Mitsubishi Materials Corporation 299,550 295,26879,400 Mitsui & Co., Ltd. 1,296,712 992,84234,000 Mitsui Fudosan Co., Ltd. 549,728 505,569

1,000 Murata Manufacturing Company Ltd. 51,947 50,6587,800 NAMCO BANDAI Holdings Inc. 142,270 72,787

14,000 NGK Insulators, Ltd. 274,159 231,49019,000 NGK SPARK PLUG Co., Ltd 227,692 250,464

1,600 Nintendo Co., Ltd. 508,552 495,72131,000 Nippon Electric Glass Co., Ltd. 355,313 375,22714,000 Nippon Shokubai Co., Ltd. 136,958 141,12915,400 Nippon Telegraph and Telephone Corporation 807,952 668,76387,400 Nissan Motor Co., Ltd. 1,000,431 644,416

7,850 ORIX Corporation 523,992 606,43643,000 Sharp Corporation 789,889 481,49617,400 Sony Corporation 639,245 492,61815,400 Sumitomo Mitsui Financial Group, Inc. 1,164,872 462,40721,000 Sumitomo Realty & Development Co., Ltd. 319,295 380,94118,400 Suzuki Motor Corporation 457,180 384,21922,400 Tokyo Electric Power Company, Incorporated, The 632,488 648,57487,000 Tokyo Gas Co., Ltd. 384,461 423,054

117,000 Toshiba Corporation 776,361 618,257961 Yahoo Japan Corporation 395,809 406,230

5,260 Yamada Denki Co. Ltd. 366,521 365,218

21,524,027 18,769,844

Luxembourg – 0.8%7,100 Deutsche Bank AG Warrants on Infosys Technologies Limited

$0.00 Jan. 17, 2017 387,715 453,2987,100 Merrill CW10 HDFC Bank Warrants $0.0 Dec. 30, 2010 260,003 313,410

647,718 766,708

Netherlands – 3.6%24,150 ArcelorMittal 932,053 683,45023,500 ASML Holding NV 611,163 686,69410,900 Randstand Holding NV 369,245 456,52648,543 Royal Dutch Shell PLC 1,896,829 1,310,658

8,200 Unilever NV 252,658 237,901

4,061,948 3,375,229

New Zealand – 0.1%87,909 Telecom Corporation of New Zealand Limited 134,028 119,812

Norway – 0.2%17,850 Petroleum Geo-Services ASA 195,673 158,552

Republic Of Kazakhstan – 0.2%7,300 KazMunaiGas Exploration Production GDR 185,976 143,228

Russia – 0.4%6,400 OAO Gazprom, Sponsored ADR 171,478 128,0234,600 OAO LUKOIL, Sponsored ADR 406,658 251,636

578,136 379,659

Singapore – 0.6%125,181 Noble Group Limited 175,071 160,761203,000 Olam International Limited 382,649 395,335

557,720 556,096

South Africa – 0.6%10,500 Bidvest Group Limited 135,262 179,57316,300 Impala Platinum Holdings Limited 448,027 413,200

583,289 592,773

South Korea – 1.7%4,900 Hana Financial Group Inc. 252,143 137,8838,000 KB Financial Group, Inc. 364,400 324,443


AverageCost ($)

FairValue ($)

FOREIGN EQUITIES (cont’d)South Korea (cont’d)

1,240 Samsung Electronics Co., Ltd. 809,687 827,190500 Samsung Electronics Co., Ltd. GDR 177,436 166,363300 Samsung Electronics Co., Ltd., Preference 183,657 135,892

1,787,323 1,591,771

Spain – 1.9%55,216 Banco Santander Central Hispano SA 846,104 617,385

8,580 Industria de Diseno Textil SA 491,853 517,79732,600 Telefonica SA 838,409 640,581

2,176,366 1,775,763

Sweden – 0.9%15,210 Atlas Copco AB 223,347 237,06215,500 Electrolux AB, Class B 399,665 376,688

8,250 Hennes & Mauritz AB, Class B 252,596 241,518

875,608 855,268

Switzerland – 7.2%2,300 Alcon, Inc. 354,715 362,4967,000 Compagnie Financiere Richemont AG 249,468 259,107

17,724 Credit Suisse Group AG 913,893 708,73017,875 Julius Baer Group Ltd. 1,013,741 541,45865,900 Logitech International SA 988,785 952,273

9,813 Nestle SA 448,464 503,75334,930 Novartis AG 1,876,648 1,803,044

6,498 Roche Holdings AG 1,083,057 949,388191 SGS SA 258,148 273,601

1,343 Syngenta AG 334,197 329,955

7,521,116 6,683,805

Taiwan – 0.2%15,244 AU Optronics Corp. ADR 145,884 143,969

United Kingdom – 23.7%34,626 Admiral Group PLC 709,251 770,32317,902 Aggreko PLC 368,125 397,65350,591 Amec PLC 648,048 656,21322,000 AstraZeneca PLC 1,045,154 1,099,89599,100 BAE Systems PLC 698,655 489,861

135,300 Barclays PLC 743,136 570,73942,763 BG Group PLC 792,112 673,55024,623 BHP Billiton PLC 743,071 677,956

120,900 BP PLC 1,234,703 617,82158,789 British American Tobacco PLC 2,020,132 1,980,71430,400 British Sky Broadcasting Group PLC 269,257 337,375

103,000 Capita Group PLC 1,247,453 1,202,4179,506 Carnival PLC 260,635 324,1938,300 Eurasian Natural Resources Corporation 127,957 112,333

57,600 G4S PLC 253,508 242,84746,833 IG Group Holdings PLC 287,559 310,93946,000 Imperial Tobacco Group PLC 1,378,110 1,364,69328,270 Inchcape PLC 141,129 109,88012,300 Kazakhmys PLC 269,870 192,019

172,086 Man Group PLC 1,252,126 605,73385,400 Marks & Spencer Group PLC 558,864 447,842

233,600 Old Mutual PLC 395,096 380,20232,100 Petrofac Limited 603,699 600,573

191,800 Premier Foods PLC 139,541 58,03928,300 Prudential PLC 239,316 225,690

163,300 Rentokil Initial PLC 327,319 275,87020,400 Rio Tinto PLC 1,043,430 949,849

5,985,000 Rolls-Royce Group C Shares Restricted* – 9,51566,500 Rolls-Royce Group PLC 430,387 589,23358,287 Serco Group PLC 566,893 540,24047,307 Standard Chartered PLC 1,103,679 1,221,940

175,261 Tesco PLC 1,377,287 1,049,97643,500 Thomas Cook Group PLC 165,449 122,06017,300 Travis Perkins PLC 221,021 200,259


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FairValue ($)

FOREIGN EQUITIES (cont’d)United Kingdom (cont’d)

50,400 Tui Travel PLC 208,865 166,357611,280 Vodafone Group PLC 1,707,218 1,347,79983,330 Xstrata PLC 1,291,888 1,161,626

24,869,943 22,084,224


Currency Forward Contracts – 0.0% (29,981)OTHER ASSETS, LESS LIABILITIES – (0.4)% (346,006)

NET ASSETS – 100.0% 93,035,288






June 30, 2010 ($)


(Depreciation)Sep. 15, 2010 Canadian Dollar 2,279,711 European Euro 1,807,000 2,355,011 (75,300)Sep. 15, 2010 European Euro 1,807,000 Canadian Dollar 2,309,653 2,305,953 45,319

(29,981)





Australia 3.4 4.6Austria 0.3 0.1Belgium 1.9 1.0Brazil 2.7 3.0China 0.7 1.3Denmark 1.6 1.6Finland 0.6 0.8France 8.5 9.4Germany 7.4 9.1Hong Kong 4.7 3.9Hungary 0.1 0.2Indonesia 0.3 –Ireland – 0.4Israel 2.2 1.7Italy 3.7 4.7Japan 20.2 12.4Luxembourg 0.8 1.3Netherlands 3.6 5.6New Zealand 0.1 0.1Norway 0.2 0.5Republic of Kazakhstan 0.2 0.2Russia 0.4 0.6Singapore 0.6 0.2South Africa 0.6 0.4South Korea 1.7 1.7Spain 1.9 4.5Sweden 0.9 0.5Switzerland 7.2 7.0Taiwan 0.2 1.0United Kingdom 23.7 20.7Currency Forward Contracts 0.0 0.0


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June 30, 2010 December 31, 2009

European Euro 26,052,453 28.0 39,873,508 35.8British Pound 22,509,232 24.2 22,162,618 19.9Japanese Yen 19,012,323 20.4 13,783,584 12.4Swiss Franc 6,340,817 6.8 7,845,421 7.0Hong Kong Dollar 5,068,268 5.4 5,825,486 5.2U.S. Dollar 5,054,713 5.4 8,247,561 7.4Australian Dollar 3,356,795 3.6 5,272,118 4.7Danish Krone 1,467,989 1.6 1,765,221 1.6South Korean Won 1,425,408 1.5 1,715,557 1.5Isreal Shekel 1,166,860 1.3 440,055 0.4Swedish Krona 876,314 0.9 694,869 0.6South African Rand 610,885 0.7 511,465 0.5Singapore Dollar 576,699 0.6 194,870 0.2Brazilian Real 417,363 0.4 213,303 0.2Jakarta Rupiah 252,046 0.3 – –Norwegian Krone 179,642 0.2 617,131 0.6Hungary Forint 128,729 0.1 178,018 0.2Thai Baht 4,116 0.0 3,950 0.0Czech koruna – – 12,286 0.0

Total 94,500,652 101.4 109,357,021 98.2



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley CapitalInternational Europe, Australasia,Far East Index 18,607,058 22,035,544 20.0 19.8



June 30, 2010 December 31, 2009


$4,900,924 $392,111



Equities $ 4,223,842 $ 88,420,725 $ – $ 92,644,567Warrants – 766,708 – 766,708

4,223,842 89,187,433 – 93,411,275

Currency Forward Contracts – (29,981) – (29,981)

$4,223,842 $89,157,452 $ – $93,381,294


Equities $ 4,960,493 $ 103,172,990 $ – $ 108,133,483Warrants – 1,476,326 – 1,476,326Currency Forward Contracts – 15,652 – 15,652

$4,960,493 $104,664,968 $ – $109,625,461



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Scotia International Value Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $75,636,512 $75,157,215Cash 845,038 1,844,692Accrued investment income 166,140 60,560Receivable for securities sold 527,243 1,194,207Subscriptions receivable 13,807 17,812

77,188,740 78,274,486

LIABILITIESPayable for securities purchased 149,712 968,494Redemptions payable 3,519 8,510Accrued expenses 31,125 22,573

184,356 999,577

Net Assets $77,004,384 $77,274,909

NET ASSETS PER CLASSClass A Units $10,679,468 $13,033,820Advisor Class Units $ 59,764 $ 66,526Class I Units $66,265,152 $64,174,563

UNITS OUTSTANDINGClass A Units 1,989,429 2,179,754Advisor Class Units 11,457 11,457Class I Units 12,167,090 10,713,475

NET ASSETS PER UNITClass A Units $ 5.37 $ 5.98Advisor Class Units $ 5.22 $ 5.81Class I Units $ 5.45 $ 5.99


2010 2009INVESTMENT INCOMEDividends $ 1,392,618 $ 1,522,362Interest 69 6,720Foreign withholding taxes/Tax reclaims (208,309) (257,872)

1,184,378 1,271,210



203,555 184,884


Net realized gain (loss) on investments sold (2,719,666) (8,179,185)Net realized gain (loss) on foreign exchange (17,048) (40,328)Transaction costs (67,848) (62,446)Change in unrealized appreciation (depreciation) of investments (5,534,718) 12,580,862



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(1,233,883) $ 479,802Advisor Class Units $ (7,014) $ 594Class I Units $(6,117,560) $ 4,904,833

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.59) $ 0.21Advisor Class Units $ (0.61) $ 0.33Class I Units $ (0.54) $ 0.29


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $13,033,820 $11,720,925Advisor Class Units 66,526 2,234Class I Units 64,174,563 85,429,288

77,274,909 97,152,447

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (1,233,883) 479,802Advisor Class Units (7,014) 594Class I Units (6,117,560) 4,904,833

(7,358,457) 5,385,229


Class A Units 362,220 434,252Advisor Class Units 4,000 7,000Class I Units 9,470,448 2,349,356

Reinvested distributionsClass A Units – (12)

Payments on redemptionClass A Units (1,482,689) (674,760)Advisor Class Units (3,748) –Class I Units (1,262,299) (7,803,105)

7,087,932 (5,687,269)

INCREASE (DECREASE) IN NET ASSETSClass A Units (2,354,352) 239,282Advisor Class Units (6,762) 7,594Class I Units 2,090,589 (548,916)

(270,525) (302,040)

NET ASSETS – END OF PERIODClass A Units 10,679,468 11,960,207Advisor Class Units 59,764 9,828Class I Units 66,265,152 84,880,372

$77,004,384 $96,850,407


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105

As at June 30, 2010


AverageCost ($)

FairValue ($)

EQUITIES – 98.2%Belgium – 1.3%

25,100 KBC Groep SA NV 1,194,132 1,024,418

Bermuda – 2.6%33,475 RenaissanceRe Holdings Ltd. 1,876,105 2,003,338

Canada – 0.6%13,707 Gildan Activewear Inc. 275,964 417,661

Finland – 0.8%74,125 Nokia Oyj 1,180,135 644,032

France – 8.9%430,725 Alcatel-Lucent SA 3,146,991 1,168,97231,475 Cap Gemini SA 1,622,454 1,463,25893,054 Credit Agricole SA 3,108,176 1,013,57146,300 Lagardere SCA 1,939,427 1,526,52277,703 Vivendi 3,043,978 1,672,720

12,861,026 6,845,043

Germany – 4.0%26,079 Henkel AG & Co. KGaA 1,147,603 1,133,309

3,900 Volkswagen AG 361,329 349,84817,100 Volkswagen AG Non-voting 1,521,168 1,597,179

3,030,100 3,080,336

Hong Kong – 1.9%255,242 Esprit Holdings Limited 1,887,089 1,463,948

Italy – 2.0%142,772 Finmeccanica SpA 2,597,075 1,576,492

Japan – 8.9%56,500 MS & AD Insurance Group Holdings, Inc. 1,611,402 1,282,83289,000 NGK SPARK PLUG Co., Ltd 1,116,259 1,173,226

1,050 NTT DoCoMo Inc. 1,657,216 1,688,84456,300 OMRON Corporation 925,855 1,286,41548,200 Sumitomo Mitsui Financial Group, Inc. 3,444,216 1,447,275

8,754,948 6,878,592

Netherlands – 14.6%195,521 AEGON NV 2,337,049 1,114,52643,075 Akzo Nobel NV 2,511,947 2,370,95686,492 European Aeronautic Defence and Space Company 1,594,522 1,877,971

161,202 ING Groep NV 3,262,411 1,273,52759,400 Koninklijke Royal Philips Electronics NV 2,050,628 1,884,00419,975 Nutreco Holding NV 1,202,997 1,140,59357,375 Royal Dutch Shell PLC 1,609,147 1,549,122

14,568,701 11,210,699

Russia – 2.7%103,000 OAO Gazprom, Sponsored ADR 1,940,278 2,060,377

Sweden – 1.4%187,900 Skandinaviska Enskilda Banken AB 958,986 1,061,068

Switzerland – 6.1%38,400 Credit Suisse Group AG 1,666,333 1,535,502

107,200 GAM Holding Ltd. 1,181,057 1,190,441139,501 UBS AG 3,479,426 1,967,408

6,326,816 4,693,351

Taiwan – 0.9%95,275 Hon Hai Precision Industry Co., Ltd. GDR 806,884 730,563

United Kingdom – 35.4%1,399,300 Aegis Group PLC 2,706,835 2,359,681

292,742 Aviva PLC 3,260,768 1,447,732572,600 BAE Systems PLC 3,234,635 2,830,420324,800 Barclays PLC 1,704,216 1,370,111309,375 BP PLC 2,645,429 1,580,963177,600 Bunzl PLC 1,973,279 1,884,467507,550 Carillion plc 2,526,934 2,460,544


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)United Kingdom (cont’d)

156,389 HSBC Holdings PLC 1,851,076 1,518,079441,805 Inchcape PLC 1,952,245 1,717,207160,300 International Power PLC 778,686 755,660258,625 Reed Elsevier PLC 2,036,966 2,031,476

1,684,662 Royal Bank of Scotland Group PLC, The 5,045,689 1,079,603158,700 Smith & Nephew PLC 1,331,551 1,589,835229,625 Travis Perkins PLC 3,003,799 2,658,064889,850 Vodafone Group PLC 2,071,094 1,962,011

36,123,202 27,245,853

United States – 6.1%22,083 ACE Limited 1,164,217 1,209,07519,500 ENSCO PLC 785,274 814,63499,450 Tyco Electronics Ltd. 1,768,485 2,677,032

3,717,976 4,700,741



NET ASSETS – 100.0% 77,004,384




Belgium 1.3 1.5Bermuda 2.6 2.8Canada 0.6 3.3Finland 0.8 2.3France 8.9 15.9Germany 4.0 1.6Hong Kong 1.9 1.3Italy 2.0 2.1Japan 8.9 10.6Netherlands 14.6 13.8Norway – 2.9Puerto Rico – 0.6Russia 2.7 2.9South Korea – 1.1Sweden 1.4 0.9Switzerland 6.1 5.5Taiwan 0.9 –United Kingdom 35.4 22.6United States 6.1 5.6


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Scotia International Value Fund (Unaudited – Continued)



106







June 30, 2010 December 31, 2009

British Pound 27,245,853 35.4 17,464,017 22.6European Euro 24,382,201 31.7 28,780,164 37.2U.S. Dollar 10,071,293 13.1 12,408,094 16.1Japanese Yen 6,924,794 9.0 8,200,667 10.6Swiss Franc 4,693,350 6.1 4,248,678 5.5Hong Kong Dollar 1,463,948 1.9 1,009,911 1.3Swedish Krona 1,061,068 1.4 676,911 0.9Norwegian Krone – – 2,242,118 2.9South Korean Won – – 168,603 0.2

Total 75,842,507 98.6 75,199,163 97.3



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley CapitalInternational Europe, Australasiaand Far East Index 18,019,026 18,236,879 23.4 23.6



June 30, 2010 December 31, 2009




Equities $7,121,740 $68,514,772 $ – $75,636,512


Equities $10,162,283 $64,994,932 $ – $75,157,215



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107

Scotia International Value Fund (Unaudited – Continued)

Scotia European Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $17,357,643 $22,384,008Cash 79,191 157,923Accrued investment income 29,339 25,084Receivable for securities sold 112,326 72,000Subscriptions receivable 3,043 3,767Receivable for currency forward contracts 4,747 –

17,586,289 22,642,782

LIABILITIESPayable for securities purchased 42,357 27,424Distributions payable – 377Redemptions payable 7,984 12,389Accrued expenses 37,609 25,607Payable for currency forward contracts – 36

87,950 65,833

Net Assets $17,498,339 $22,576,949

NET ASSETS PER CLASSClass A Units $17,075,811 $22,122,890Class I Units $ 422,528 $ 454,059

UNITS OUTSTANDINGClass A Units 2,431,856 2,623,390Class I Units 60,039 54,327



2010 2009INVESTMENT INCOMEDividends $ 429,532 $ 748,936Interest 29 824Foreign withholding taxes/Tax reclaims (71,121) (118,063)

358,440 631,697



256,402 268,247


Net realized gain (loss) on investments sold (897,868) (5,141,833)Net realized gain (loss) on currency forwards 48,863 –Net realized gain (loss) on foreign exchange (30,001) 6,800Transaction costs (12,149) (13,798)Change in unrealized appreciation (depreciation) of investments (2,820,765) 4,824,462Change in unrealized appreciation (depreciation) of currency forwards 4,783 (12,865)

Net gain (loss) on investments and transaction costs (3,707,137) (337,234)

Increase (decrease) in Net Assets from operations $(3,605,099) $ 26,216

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(3,533,034) $ 142,861Class I Units $ (72,065) $ (116,645)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (1.40) $ 0.05Class I Units $ (1.29) $ (0.26)


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $22,122,890 $21,480,866Class I Units 454,059 4,570,612

22,576,949 26,051,478

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (3,533,034) 142,861Class I Units (72,065) (116,645)

(3,605,099) 26,216


Class A Units 805,643 408,697Class I Units 40,534 219,585


Payments on redemptionClass A Units (2,319,688) (1,063,537)Class I Units – (4,253,662)

(1,473,511) (4,688,870)

INCREASE (DECREASE) IN NET ASSETSClass A Units (5,047,079) (511,932)Class I Units (31,531) (4,150,722)

(5,078,610) (4,662,654)

NET ASSETS – END OF PERIODClass A Units 17,075,811 20,968,934Class I Units 422,528 419,890

$17,498,339 $21,388,824


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108

As at June 30, 2010


AverageCost ($)

FairValue ($)

EQUITIES – 99.2%Austria – 0.4%

2,100 OMV AG 90,865 67,346

Belgium – 2.9%5,024 Anheuser-Busch InBev NV 210,518 256,7852,214 KBC Groep SA NV 103,200 90,3615,381 Umicore 180,910 165,679

494,628 512,825

Denmark – 1.5%1,375 Carlsberg A/S Series B 103,991 111,2374,100 Danske Bank AS 98,088 83,7871,400 Vestas Wind Systems AS 100,145 61,924

302,224 256,948

Finland – 1.1%3,500 Cargotec Oyj B Share 106,938 96,018

11,900 Nokia Oyj 244,605 103,393

351,543 199,411

France – 12.2%2,300 Arkema 89,932 84,1963,139 BNP Paribas 244,487 178,3443,300 Bouygues SA 170,974 134,4993,373 Cap Gemini SA 168,414 156,8091,600 Casino Guichard-Perrachon SA 126,826 128,5671,600 Compagnie Generale de Geophysique-Veritas 49,709 29,9032,300 Electricite de France SA 131,893 93,0068,479 Eutelsat Communications 206,746 301,4226,519 France Telecom SA 199,251 119,6991,700 Lagardere SCA 152,884 56,049

701 Pinault-Printemps-Redoute SA 87,704 92,0492,100 Renault SA 89,664 82,2375,300 Rexel SA 78,322 77,7083,000 Sanofi-Aventis 235,617 192,5002,300 Societe Generale 256,655 99,556

610 Vallourec SA 121,743 110,8261,759 Vinci SA 106,883 77,0735,810 Vivendi 166,068 125,072

2,683,772 2,139,515

Germany – 13.7%1,700 Allianz SE 270,397 179,1151,721 BASF SE 101,730 100,1075,930 Bayer AG 453,003 351,3002,750 Bayerische Motoren Werke AG 122,137 141,8182,500 Celesio AG 107,172 58,1844,466 Daimler AG 233,266 240,6362,620 Deutsche Bank AG 221,757 157,3187,681 E.ON AG 320,546 220,6142,073 Fresenius Medical Care AG & Co. KGaA 111,485 119,1271,668 Linde AG 200,829 186,367

894 MAN SE 73,478 78,356730 Muenchener Rueckversicherungs-Gesellschaft AG 110,477 97,199

1,720 RWE AG 174,020 119,4941,117 Siemens AG 101,408 106,361

365 SMA Solar Technology AG 43,681 39,7213,700 ThyssenKrupp AG 133,411 97,0701,135 Volkswagen AG Non-voting 104,277 106,012

2,883,074 2,398,799

Ireland – 1.2%5,751 CRH PLC 155,397 128,0869,700 Smurfit Kappa Group PLC 93,568 83,632

248,965 211,718


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Italy – 3.1%

8,100 Autogrill SpA 101,790 103,1988,000 Eni SpA 251,409 156,267

48,600 Telecom Italia SpA 135,828 56,99877,400 Telecom Italia SpA, di Risp Non Conv. 134,562 75,05163,300 UniCredit SpA 181,242 149,510

804,831 541,024

Netherlands – 4.2%1,302 Akzo Nobel NV 82,722 71,6651,121 ArcelorMittal 46,036 31,7256,053 ASML Holding NV 167,405 176,8758,582 Koninklijke Ahold NV 115,096 113,0923,700 Koninklijke Philips Electronics NV 122,561 117,3541,400 Nutreco Holding NV 62,864 79,9413,714 Qiagen NV 76,573 76,5561,500 Randstand Holding NV 54,930 62,825

728,187 730,033

Norway – 0.7%8,400 DnB NOR ASA 89,465 86,0133,600 Petroleum Geo-Services ASA 51,680 31,977

141,145 117,990

Spain – 3.3%20,987 Banco Santander Central Hispano SA 330,267 234,661

2,031 Industria de Diseno Textil SA 137,071 122,56911,500 Telefonica SA 296,466 225,972

763,804 583,202

Sweden – 2.8%4,300 Electrolux AB, Class B 103,445 104,5013,373 SKF AB, Class B 54,746 64,326

16,806 Telefonaktiebolaget LM Ericsson, Class B 189,320 199,20917,818 TeliaSonera AB 112,324 121,943

459,835 489,979

Switzerland – 15.3%10,348 ABB Limited 216,824 191,316

3,759 Compagnie Financiere Richemont AG 129,810 139,1404,012 Credit Suisse Group AG 201,865 160,4283,321 Julius Baer Group Ltd. 172,721 100,598

10,542 Nestle SA 517,499 541,17713,511 Novartis AG 750,572 697,421

1,053 Partners Group Holding AG 119,288 135,1882,924 Roche Holdings AG 543,176 427,210

900 Transocean Ltd. 72,034 44,41916,686 UBS AG 279,004 235,326

3,002,793 2,672,223

United Kingdom – 36.8%5,800 AstraZeneca PLC 287,868 289,972

17,150 Aviva PLC 87,570 84,81423,200 BAE Systems PLC 174,838 114,68048,366 Barclays PLC 263,062 204,02311,893 BG Group PLC 195,096 187,32441,469 BP PLC 372,300 211,91434,231 British Airways PLC 95,840 105,69915,838 British American Tobacco PLC 510,555 533,613

5,231 Carnival PLC 151,301 178,39810,236 CSR PLC 80,949 60,49316,600 FirstGroup PLC 97,020 95,560

6,900 Imperial Tobacco Group PLC 227,707 204,70424,610 Inchcape PLC 101,905 95,65443,572 Informa PLC 253,775 243,99211,160 John Wood Group PLC 58,406 55,214

5,400 Kazakhmys PLC 120,605 84,301


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Scotia European Fund (Unaudited – Continued)



109


AverageCost ($)

FairValue ($)


21,990 Man Group PLC 139,906 77,40417,200 Marks & Spencer Group PLC 116,601 90,19816,100 Michael Page International PLC 108,643 94,55742,000 Old Mutual PLC 82,328 68,358

139,500 Premier Foods PLC 77,795 42,21341,100 Rentokil Initial PLC 62,586 69,432

9,826 Rio Tinto PLC 481,797 457,5111,026,000 Rolls-Royce Group C Shares Restricted* – 1,631

9,800 Rolls-Royce Group PLC 58,738 86,83413,726 Royal Dutch Shell PLC, Class B 474,006 353,599

6,829 SABMiller PLC 198,707 201,7447,919 Shire PLC 151,809 171,268

13,081 Standard Chartered PLC 355,184 337,88245,347 Tesco PLC 370,629 271,67120,800 Thomas Cook Group PLC 80,262 58,364

7,600 Travis Perkins PLC 87,241 87,975


AverageCost ($)

FairValue ($)


14,300 Tui Travel PLC 68,002 47,20010,099 Tullow Oil PLC 193,915 160,062

7,786 Unilever PLC 237,814 220,791153,350 Vodafone Group PLC 443,520 338,11817,406 WPP Group PLC 159,744 174,16119,749 Xstrata PLC 222,620 275,302

7,250,644 6,436,630


Currency Forward Contracts – 0.0% 4,747OTHER ASSETS, LESS LIABILITIES – 0.8% 135,949

NET ASSETS – 100.0% 17,498,339






June 30, 2010 ($)


(Depreciation)Jul. 15, 2010 British Pound 294,000 Canadian Dollar 444,234 444,055 23,331Jul. 15, 2010 British Pound 193,000 Canadian Dollar 294,518 294,399 12,422Jul. 15, 2010 British Pound 162,000 Canadian Dollar 253,279 253,177 4,363Jul. 15, 2010 Canadian Dollar 578,051 British Pound 372,000 591,622 (13,571)Jul. 15, 2010 Canadian Dollar 420,778 British Pound 277,000 440,536 (19,758)Oct. 15, 2010 Canadian Dollar 103,573 European Euro 81,000 105,613 (2,040)

4,747





Austria 0.4 0.6Belgium 2.9 1.9Denmark 1.5 1.8Finland 1.1 1.1France 12.2 16.3Germany 13.7 13.7Ireland 1.2 1.0Italy 3.1 4.3Netherlands 4.2 5.8Norway 0.7 0.6Spain 3.3 6.4Sweden 2.8 1.2Switzerland 15.3 7.0United Kingdom 36.8 37.4Currency Forward Contracts 0.0 0.0


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110


Currency risk (note 3)The table below indicates the currencies to which the Fund had significantexposure, net of the impact of the foreign currency forward contracts, if any,based on the fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

European Euro 7,306,915 41.8 11,576,061 51.3British Pound 6,420,870 36.7 8,060,649 35.7Swiss Franc 2,674,663 15.3 1,592,203 7.1Swedish Krona 492,661 2.8 277,897 1.2Danish Krone 259,288 1.5 410,696 1.8Norwegian Krone 119,889 0.7 133,666 0.6U.S. Dollar 7,638 0.0 8,812 0.0Czech Koruna 215 0.0 242 0.0

Total 17,282,139 98.8 22,060,226 97.7



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley CapitalInternational Europe Index 3,324,684 4,244,466 19.0 18.8


Less than 3 months 3 months - 1 year

June 30, 2010

Accounts payable and accrued liabilities $ 87,950 $ —Currency Forward Contracts 33,329 2,040

$121,279 $2,040

Less than 3 months 3 months - 1 year

December 31, 2009

Accounts payable and accrued liabilities $65,797 $—Currency Forward Contracts 36 —

$65,833 $—



Equities $ 44,419 $ 17,313,224 $ – $ 17,357,643Currency Forward Contracts – 4,747 – 4,747

$44,419 $17,317,971 $ – $17,362,390


Equities $ – $ 22,384,008 $ – $ 22,384,008Currency Forward Contracts – (36) – (36)

$ – $22,383,972 $ – $22,383,972



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Scotia Pacific Rim Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $50,178,114 $52,387,055Cash 1,901,704 970,658Accrued investment income 29,020 18,359Receivable for securities sold 60,025 –Subscriptions receivable 16,428 35,109

52,185,291 53,411,181


68,485 78,384

Net Assets $52,116,806 $53,332,797





2010 2009INVESTMENT INCOMEDividends $ 591,669 $ 326,638Interest 1,415 353Foreign withholding taxes/Tax reclaims (78,020) (38,396)

515,064 288,595



350,276 284,318


Net realized gain (loss) on investments sold 920,371 (1,901,579)Net realized gain (loss) on foreign exchange (145,149) (177,101)Transaction costs (119,415) (62,744)Change in unrealized appreciation (depreciation) of investments (5,403,679) 4,061,936



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(2,254,401) $ 1,786,304Class I Units $(2,328,683) $ 138,485

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.97) $ 0.79Class I Units $ (0.91) $ 1.34


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $25,042,978 $21,009,101Class I Units 28,289,819 747,570

53,332,797 21,756,671

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (2,254,401) 1,786,304Class I Units (2,328,683) 138,485

(4,583,084) 1,924,789



Payments on redemptionClass A Units (2,479,632) (1,266,275)Class I Units (51,190) (34,936)

3,367,093 1,047,323

INCREASE (DECREASE) IN NET ASSETSClass A Units (2,553,582) 1,816,168Class I Units 1,337,591 1,155,944

(1,215,991) 2,972,112


$52,116,806 $24,728,783


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As at June 30, 2010


AverageCost ($)

FairValue ($)

EQUITIES – 96.3%Australia – 11.5%

162,000 Australian Worldwide Exploration Limited 406,647 255,23340,881 BHP Billiton Limited 1,248,082 1,352,83841,527 Caltex Australia Limited 385,291 345,06130,040 Commonwealth Bank of Australia 1,195,031 1,295,534

8,700 CSL Ltd. 265,703 252,47755,021 Lend Lease Group 524,889 357,384

6,969 Macquarie Group Limited 337,967 228,20211,310 Rio Tinto Limited 702,115 666,51843,893 Westpac Banking Corporation 955,030 824,77411,546 Woodside Petroleum Limited 464,636 428,510

6,485,391 6,006,531

China – 7.5%366,000 China Coal Energy Company, Class H 610,972 488,147498,000 China COSCO Holdings Company Ltd., Class H 713,119 539,033153,680 China Merchants Bank Co., Ltd., Class H 392,633 390,535284,000 China Oilfield Services Limited 427,625 353,200253,000 Comba Telecom Systems Holdings Limited 270,570 296,69272,500 Hengan International Group Company Limited 473,933 622,180

865,000 Industrial and Commercial Bank of China Ltd, Class H 643,275 668,000680,000 Sino Biopharmaceutical Limited 289,327 281,494222,000 Zhongsheng Group Holdings Ltd. 301,191 289,061

4,122,645 3,928,342

Hong Kong – 12.0%59,100 ASM Pacific Technology Limited 494,529 488,74453,500 Beijing Enterprises Holdings Ltd. 429,515 369,62794,000 China Life Insurance Co., Limited, Class H 423,667 439,19535,000 China Mobile Limited 356,303 370,99570,000 CLP Holdings Limited 513,483 539,028

332,000 CNOOC Limited 501,060 601,933168,000 Digital China Holdings Limited 284,367 273,169358,000 Dongfeng Motor Group Company Limited 404,805 433,25095,500 Kerry Properties Limited 414,169 435,951

286,500 Lifestyle International Holdings Limited 534,276 590,998148,000 Shimao Property Holdings Limited 355,552 244,27132,100 Tencent Holdings Limited 561,424 562,98289,000 Wharf Holdings Limited, The 523,748 458,206

586,000 Zijin Mining Group Co., Ltd., Class H 630,411 464,557

6,427,309 6,272,906

India – 4.6%45,613 ITC Limited 254,835 291,06917,080 Larsen & Toubro Limited GDR 430,275 693,887

8,540 Reliance Industries Ltd. GDR 400,533 417,3939,316 State Bank of India GDR 682,942 987,620

1,768,585 2,389,969

Indonesia – 3.9%89,000 P.T. Astra International Tbk 313,284 498,541

948,000 PT Bank Mandiri 543,187 656,839412,666 PT United Tractors Tbk 533,466 896,762

1,389,937 2,052,142

Japan – 33.8%27,900 Aisin Seiki Co., Ltd. 784,712 801,72312,100 Daikin Industries, Ltd. 517,354 392,78710,100 East Japan Railway Company 754,599 716,09527,500 Honda Motor Co., Ltd. 962,804 849,444

8,900 IBIDEN Co., Ltd. 345,000 255,202121,000 Isuzu Motors Limited 394,972 384,28724,000 Japan Steel Works Ltd., The 319,836 224,775

9,300 JFE Holdings, Inc. 367,568 305,371105 KDDI Corporation 541,064 530,487

25,500 Komatsu Ltd. 522,435 490,097103,500 Mitsubishi Chemical Holdings Corporation 554,073 501,29938,700 Mitsubishi Corporation 1,025,893 857,720

101,800 Mitsubishi UFJ Financial Group, Inc. 849,070 490,83030,000 Mitsui Fudosan Co., Ltd. 557,716 446,090


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Japan (cont’d)

61,000 Mitsui O.S.K. Lines, Ltd. 417,977 428,17010,800 NIDEC Corporation 857,912 958,233

800 Nintendo Co., Ltd. 286,003 247,86130,000 Nippon Electric Glass Co., Ltd. 421,996 363,123

3,900 Nitori Co., Ltd. 314,024 357,03416,700 Nitto Denko Corporation 705,747 579,52352,000 Nomura Holdings, Inc. 420,255 302,778

5,250 ORIX Corporation 423,095 405,578251,000 Sanyo Electric Co., Ltd. 427,556 343,79715,660 Seven & I Holdings Co., Ltd. 406,114 382,16317,400 SOFTBANK Corp. 450,505 489,16411,700 Sony Corporation 417,470 331,24331,600 Sumitomo Electric Industries, Ltd. 413,544 393,40681,000 Sumitomo Heavy Industries, Ltd. 546,910 507,40925,000 Sumitomo Mitsui Financial Group, Inc. 1,209,939 750,66118,500 Suzuki Motor Corporation 458,776 386,30713,900 Terumo Corporation 696,860 707,50318,400 Tokyo Electric Power Company, Incorporated, The 592,760 532,75710,600 Tokyo Electron Limited 690,531 608,851

135,000 Toshiba Corporation 787,548 713,3734,700 Unicharm Corporation 452,170 562,952

19,894,788 17,598,093

Malaysia – 2.8%246,200 CIMB Group Holdings Berhad 551,592 564,678347,308 IJM Corporation Berhad 465,905 559,91270,000 Top Glove Corporation Bhd. 277,940 315,068

1,295,437 1,439,658

New Zealand – 0.9%84,347 Fletcher Building Limited 447,396 480,370

Philippines – 1.9%7,310 Philippine Long Distance Telephone Company 419,516 397,571

1,777,000 Robinsons Land Corporation 381,425 579,099

800,941 976,670

Singapore – 3.6%200,000 Hotel Properties Limited 344,592 377,27916,000 Jardine Cycle & Carriage Limited 338,625 361,17821,000 K-Green Trust – 16,759

105,000 Keppel Corporation Limited 680,304 672,884306,000 Wheelock Properties (Singapore) Limited 450,448 426,388

1,813,969 1,854,488

South Korea – 7.4%24,910 Hynix Semiconductor Inc. 431,045 536,639

3,358 Hyundai Mobis 401,121 597,49815,340 Kia Motors Corporation 416,541 432,434

2,495 LG Chem Ltd. 381,195 666,15811,110 LG Display Co., Ltd. 428,086 391,944

405 Samsung Electronics Co., Ltd. 246,183 270,1713,094 Samsung SDI Co., Ltd. 425,111 459,591

12,920 Shinhan Financial Group Co., Ltd. 473,938 505,533

3,203,220 3,859,968

Taiwan – 5.3%83,550 Acer Inc. 172,313 205,15818,665 Acer Inc. 243,599 237,55635,331 Cathay Financial Holding Co., Ltd. GDR 580,220 561,91051,140 Hon Hai Precision Industry Co., Ltd. GDR 407,345 392,13928,000 Largan Precision Company Limited 407,618 472,72273,000 Powertech Technology Inc. 262,559 214,228

100,000 Taiwan Fertilizer Co., Ltd. 414,583 277,45336,000 Taiwan Semiconductor Manufacturing Company Ltd. ADR 356,860 373,688

2,845,097 2,734,854


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EQUITIES (cont’d)Thailand – 1.1%

15,700 Banpu Public Company Limited 236,454 311,062292,000 CP All Public Company Limited 151,642 273,061

388,096 584,123



NET ASSETS – 100.0% 52,116,806




Australia 11.5 15.2China 7.5 6.0Hong Kong 12.0 16.6India 4.6 3.8Indonesia 3.9 4.4Japan 33.8 26.2Malaysia 2.8 1.5New Zealand 0.9 0.9Philippines 1.9 1.9Singapore 3.6 3.6South Korea 7.4 8.9Taiwan 5.3 6.8Thailand 1.1 2.4







June 30, 2010 December 31, 2009

Japanese Yen 17,998,614 34.5 14,010,924 26.3Hong Kong Dollar 10,351,127 19.9 12,232,376 22.9Australian Dollar 6,018,690 11.5 8,155,198 15.3U.S. Dollar 3,987,644 7.7 4,559,167 8.5South Korean Won 3,885,965 7.5 4,097,921 7.7Jakarta Rupiah 2,061,054 4.0 2,330,673 4.4Singapore Dollar 1,957,236 3.8 1,917,095 3.6Kuala Lumpur Ringgit 1,439,659 2.8 790,155 1.5Taiwan Dollar 1,169,561 2.2 1,699,166 3.2Philippines Peso 976,670 1.9 1,024,820 1.9Thai Baht 584,123 1.1 1,276,253 2.4New Zealand Dollar 480,370 0.9 511,284 0.9

Total 50,910,713 97.8 52,605,032 98.6



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley capitalInternational All Country PacificFree Total Return Index 11,152,996 11,306,553 21.4 21.2



June 30, 2010 December 31, 2009




Equities $681,516 $49,496,598 $ – $50,178,114


Equities $632,883 $51,754,172 $ – $52,387,055



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Scotia Latin American Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $106,386,585 $116,868,459Cash 2,194,922 578,053Accrued investment income 941,330 263,528Receivable for securities sold – 978,073Subscriptions receivable 23,613 83,550

109,546,450 118,771,663


271,589 167,106

Net Assets $109,274,861 $118,604,557

NET ASSETS PER CLASSClass A Units $ 69,239,582 $ 79,702,020Class F Units $ 116,958 $ 104,341Class I Units $ 39,918,321 $ 38,798,196

UNITS OUTSTANDINGClass A Units 2,747,632 2,747,624Class F Units 4,560 3,545Class I Units 1,507,950 1,287,757



2010 2009INVESTMENT INCOMEDividends $ 2,146,476 $ 485,198Interest 548,609 283,329Securities lending 445 –Foreign withholding taxes/Tax reclaims (328,912) (47,677)

2,366,618 720,850

EXPENSESManagement fees (note 5) 748,777 496,489Audit fees 9,210 4,148Independent Review Committee fees 502 517Custodian fees 48,687 27,407Filing fees 10,022 9,953Legal fees 2,743 2,894Unitholder reporting costs 11,746 14,483Unitholder administration, service fees and GST 117,887 108,092Overdraft charges 7,053 1,584


955,490 652,587


Net realized gain (loss) on investments sold 3,051,512 (5,335,493)Net realized gain (loss) on foreign exchange (578,598) (172,362)Transaction costs (384,797) (203,077)Change in unrealized appreciation (depreciation) of investments (18,814,403) 23,128,025



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(10,589,150) $16,567,313Class F Units $ (15,592) $ 22,380Class I Units $ (4,710,416) $ 895,663



2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 79,702,020 $44,248,158Class F Units 104,341 59,321Class I Units 38,798,196 2,919,670

118,604,557 47,227,149

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (10,589,150) 16,567,313Class F Units (15,592) 22,380Class I Units (4,710,416) 895,663

(15,315,158) 17,485,356


Class A Units 7,404,073 4,002,551Class F Units 36,076 1,212Class I Units 7,445,661 219,806

Payments on redemptionClass A Units (7,277,361) (2,975,592)Class F Units (7,867) –Class I Units (1,615,120) (935,325)

5,985,462 312,652

INCREASE (DECREASE) IN NET ASSETSClass A Units (10,462,438) 17,594,272Class F Units 12,617 23,592Class I Units 1,120,125 180,144

(9,329,696) 17,798,008

NET ASSETS – END OF PERIODClass A Units 69,239,582 61,842,430Class F Units 116,958 82,913Class I Units 39,918,321 3,099,814

$109,274,861 $65,025,157


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EQUITIES – 97.4%Argentina – 1.0%

30,000 Tenaris SA ADR 1,053,942 1,104,281

Brazil – 67.2%57,600 Anhanguera Educacional Participacoes SA 903,055 916,360

100,000 B2W Companhia Global do Varejo 1,662,608 1,761,777227,170 Banco Bradesco SA, Preference 4,033,569 3,761,292102,100 Banco Santander Brasil SA 1,204,140 1,114,157362,000 Banco Santander Brasil SA ADS ADR 4,022,652 3,977,091191,548 Bradespar SA, Preference 3,975,672 3,696,313293,000 Centrais Eletricas Brasilier SA 5,932,933 4,119,247175,000 Companhia Energetica de Sao Paulo, Preference, Series B 2,640,289 2,536,60599,688 Companhia Siderurgica Nacional SA 1,581,167 1,544,822

310,900 Itau Unibanco Holding SA ADR 4,887,096 5,955,12854,690 Itau Unibanco Holding SA, Preference 1,021,482 1,047,300

811,730 Itausa-Investimentos Itau SA, Preference 4,693,536 5,122,4875,229 Itausa-Investimentos Itau SA, Subscription Receipts 28,866 32,351

719,000 JBS SA 3,583,431 3,219,75189,800 Metalurgica Gerdau SA, Preference 1,357,256 1,545,566

431,001 MMX Mineracao e Metalicos SA 3,439,744 2,669,075430,000 OGX Petroleo e Gas Participacoes SA 3,636,839 4,236,278

30 OSX Brasil SA 13,828 8,308203,390 Petroleo Brasileiro SA ADR Non-Voting 6,443,731 6,446,181114,000 Petroleo Brasileriro SA, Preference 2,246,650 1,803,55392,000 Tam SA, Preference 1,924,859 1,348,708

272,100 Tegma Gestao Logistica SA 2,632,846 2,443,393122,000 Usinas Siderurgicas de Minas Gerais SA, Preference 3,977,570 3,458,398433,060 Vale SA ADR 7,112,436 9,681,384

4,685 Vale SA, Preference 82,411 104,65188,000 Weg S.A. 902,863 865,922

73,941,529 73,416,098

Chile – 4.9%18,486 Banco de Credito e Inversiones 500,179 804,90214,200 Banco Santander Chile SA ADR 664,046 1,013,218

519,580 Empresa Nacional de Electricidad SA 853,358 848,05136,976 Empresa Nacional de Telecomunicaciones SA 540,065 525,01742,182 Empresas Copec SA 596,461 700,401

824,458 Enersis SA 305,626 347,67417,753 Sociedad Quimica y Minera de Chile SA, Class B 713,071 618,078

245,540 Vina Concha Y Toro SA 512,906 535,631

4,685,712 5,392,972

Mexico – 20.0%300,558 America Movil SAB de CV 660,972 756,395186,500 America Movil SAB de CV, Series L, ADR 9,329,729 9,405,828800,000 Bolsa Mexicana de Valores SA 1,051,589 1,336,942350,000 Corporacion GEO SA de CV Series B 1,069,286 993,372108,200 Grupo Bimbo SAB de CV 648,441 822,150761,700 Grupo Financiero Banorte SAB de CV, Series O 2,699,728 3,069,580

1,631,005 Grupo Mexico SAB de CV, Series B 3,116,976 4,111,352376,200 Industrias CH SA, Series B 1,301,832 1,347,120

19,878,553 21,842,739

Russia – 1.5%250,000 Rosneft Oil Company 2,145,389 1,618,463

Switzerland – 1.1%14,146 Dufry Group BDR 1,132,776 1,163,587

United States – 1.7%25,000 Companhia Brasileira de Distribuicao Grupo ADR 1,631,271 1,848,445



NET ASSETS – 100.0% 109,274,861




Argentina 1.0 1.1Bermuda – 0.9Brazil 67.2 64.9Chile 4.9 4.5Mexico 20.0 21.5Peru – 2.0Russia 1.5 3.6Switzerland 1.1 –United States 1.7 –


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June 30, 2010 December 31, 2009

Brazilian Real 48,519,901 44.4 47,860,879 40.4U.S. Dollar 42,995,279 39.3 46,212,041 39.0Mexican Peso 12,436,911 11.4 18,447,156 15.6Chile Peso 4,379,754 4.0 4,399,558 3.7

Total 108,331,845 99.1 116,919,634 98.7



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley capitalInternational Emerging MarketsLatin American Index 26,663,066 28,702,303 24.4 24.2

Liquidity risk Analysis (note 3)The table below summarizes a maturity analysis of cash flows associated withthe maturities of the Fund’s financial liabilities:


June 30, 2010 December 31, 2009




Equities $104,768,122 $1,618,463 $ – $106,386,585


Equities $112,600,171 $4,268,288 $ – $116,868,459



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Scotia Global Growth Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $237,286,797 $251,344,220Cash 13,315,407 2,392,723Accrued investment income 451,960 306,718Receivable for securities sold – 49,013Subscriptions receivable 13,190 30,535

251,067,354 254,123,209

LIABILITIESPaybale for securrities purchased – 465,295Redemptions payable 47,813 22,154Accrued expenses 165,564 99,512

213,377 586,961

Net Assets $250,853,977 $253,536,248

NET ASSETS PER CLASSClass A Units $ 71,716,148 $ 80,774,878Advisor Class Units $ 23,108 $ 27,736Class I Units $179,114,721 $172,733,634

UNITS OUTSTANDINGClass A Units 2,842,497 2,952,775Advisor Class Units 916 1,014Class I Units 6,823,286 6,146,898




2,893,067 3,228,450

EXPENSESManagement fees (note 5) 769,704 655,364Audit fees 10,263 11,408Independent Review Committee fees 1,246 1,406Custodian fees 22,961 21,692Filing fees 16,061 17,222Legal fees 4,430 5,550Unitholder reporting costs 23,893 32,964Unitholder administration, service fees and GST 225,172 257,168Overdraft charges 266 771


1,054,814 876,023


Net realized gain (loss) on investments sold (5,085,468) (12,961,689)Net realized gain (loss) on foreign exchange (3,701) (298,844)Transaction costs (44,601) (56,266)Change in unrealized appreciation (depreciation) of investments (14,842,883) 33,662,410



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (6,112,044) $ 5,527,090Advisor Class Units $ (2,120) $ 1,907Class I Units $(12,024,236) $ 17,169,041

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (2.11) $ 1.83Advisor Class Units $ (2.11) $ 2.08Class I Units $ (1.85) $ 2.15


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 80,774,878 $ 67,039,802Advisor Class Units 27,736 13,746Class I Units 172,733,634 181,106,598

253,536,248 248,160,146

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (6,112,044) 5,527,090Advisor Class Units (2,120) 1,907Class I Units (12,024,236) 17,169,041

(18,138,400) 22,698,038


Class A Units 3,502,070 3,257,998Advisor Class Units – 7,000Class I Units 19,563,941 4,239,703

Payments on redemptionClass A Units (6,448,756) (3,329,849)Advisor Class Units (2,508) –Class I Units (1,158,618) (3,275,852)

15,456,129 899,000

INCREASE (DECREASE) IN NET ASSETSClass A Units (9,058,730) 5,455,239Advisor Class Units (4,628) 8,907Class I Units 6,381,087 18,132,892

(2,682,271) 23,597,038

NET ASSETS – END OF PERIODClass A Units 71,716,148 72,495,041Advisor Class Units 23,108 22,653Class I Units 179,114,721 199,239,490

$250,853,977 $271,757,184


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As at June 30, 2010


AverageCost ($)

FairValue ($)

EQUITIES – 94.6%Canadian Equities – 2.0%Industrials – 0.6%

78,316 Ritchie Bros. Auctioneers Incorporated 1,860,728 1,515,928

Financials – 1.4%8,938 Fairfax Financial Holdings Limited 3,114,572 3,480,806



33,196 EOG Resources, Inc. 2,959,502 3,473,00226,826 National-Oilwell Varco Inc. 2,017,475 942,655

4,976,977 4,415,657

Materials – 0.8%25,703 Praxair, Inc. 1,918,736 2,076,742

Industrials – 1.5%24,600 AGCO Corporation 1,566,258 705,62331,759 Deere & Company 2,421,051 1,879,02519,071 Stericycle, Inc. 1,262,725 1,329,341

5,250,034 3,913,989

Consumer Discretionary – 4.8%21,404 Amazon.com, Inc. 1,425,896 2,487,21234,300 Bed Bath & Beyond Inc. 1,077,138 1,352,301

161,390 International Game Technology 2,066,964 2,694,84022,700 Mohawk Industries, Inc. 1,149,518 1,102,83086,519 Omnicom Group Inc. 4,479,800 3,155,26433,900 Walt Disney Company, The 1,024,827 1,134,627

11,224,143 11,927,074

Consumer Staples – 7.8%69,728 Altria Group, Inc. 1,559,216 1,484,66383,673 PepsiCo, Inc. 6,086,796 5,420,39171,773 Philip Morris International Inc. 3,815,697 3,498,38544,400 Wal-Mart Stores, Inc. 2,537,153 2,268,992

179,692 Walgreen Company 7,580,252 5,100,74945,600 Whole Foods Markets, Inc. 907,543 1,745,919

22,486,657 19,519,099

Health Care – 5.5%40,300 Johnson & Johnson 2,614,441 2,530,51021,300 Medco Health Solutions, Inc. 1,083,285 1,247,30462,211 Patterson Companies Inc. 2,536,420 1,887,00628,100 Varian Medical Systems, Inc. 1,140,187 1,562,42339,162 Waters Corporation 2,604,364 2,694,79575,772 WellPoint Inc. 6,006,073 3,943,126

15,984,770 13,865,164

Financials – 5.6%50,000 Berkshire Hathaway Inc., Class B 4,335,344 4,233,44930,100 M&T Bank Corporation 1,814,429 2,716,603

8,252 Markel Corporation 3,656,467 2,983,97249,395 Moody’s Corporation 3,633,374 1,046,47590,230 New York Community Bancorp 1,081,431 1,463,44978,618 Progressive Corporation, The 1,704,020 1,565,253

16,225,065 14,009,201

Information Technology – 4.3%27,000 Baidu, Inc. 1,249,192 1,953,53497,700 Cisco Systems, Inc. 1,908,083 2,213,25289,418 eBay Inc. 3,173,329 1,864,91642,819 FLIR Systems, Inc. 1,309,535 1,324,759

7,445 Google Inc. 3,535,081 3,522,607

11,175,220 10,879,068



AverageCost ($)

FairValue ($)

FOREIGN EQUITIES (cont’d)Australia – 1.4%

721,148 Brambles Limited 5,972,325 3,498,358

Belgium – 1.4%46,613 Groupe Bruxelles Lambert SA 5,161,447 3,445,116

Brazil – 5.8%365,900 BM&F BOVESPA SA 2,757,588 2,500,922110,682 Itau Unibanco Holding SA ADR 1,718,180 2,120,056

8,703 OdontoPrev SA 261,721 320,501402,200 OGX Petroleo e Gas Participacoes SA 3,909,087 3,962,39886,800 Petroleo Brasileiro SA ADR Non-Voting 2,582,039 2,751,013

126,900 Vale SA ADR 2,406,148 2,836,945

13,634,763 14,491,835

China – 2.2%1,116,000 China National Building Material Company Ltd. 2,083,148 1,884,021

47,900 Shanda Interactive Entertainment Ltd. 2,622,399 2,019,41642,200 SINA Corporation 1,597,273 1,582,079

6,302,820 5,485,516

Denmark – 1.3%277 AP Moeller – Maersk A/S 3,088,115 2,311,053

33,228 Jyske Bank AS 1,332,522 1,027,353

4,420,637 3,338,406

Egypt – 0.7%312,400 Egyptian Financial Group-Hermes Holding 1,926,814 1,697,213

France – 0.5%31,916 Electricite de France SA 2,831,642 1,290,599

Germany – 1.4%72,789 Celesio AG 4,572,567 1,694,06526,400 Deutsche Boerse AG 2,270,547 1,706,072

6,843,114 3,400,137

Hong Kong – 1.6%231,500 China Mobile Limited 3,514,994 2,453,86793,800 Hong Kong Exchanges & Clearing Limited 1,319,146 1,555,601

4,834,140 4,009,468

Ireland – 0.9%48,600 CRH PLC 1,394,897 1,082,413

195,818 Dragon Oil plc 1,287,587 1,254,597

2,682,484 2,337,010

Israel – 0.9%39,800 Teva Pharmaceutical Industries Ltd. ADR 1,837,626 2,200,693

Japan – 5.4%151,500 Asahi Breweries, Ltd. 2,458,064 2,723,807

861 Japan Tobacco Inc. 3,713,513 2,846,97795,400 MS & AD Insurance Group Holdings, Inc. 4,009,077 2,166,056

136,200 NAMCO BANDAI Holdings Inc. 1,305,031 1,270,97352,000 Olympus Corporation 869,868 1,309,11619,800 ROHM Company Limited 1,168,875 1,257,782

140,900 Yamaha Motor Co., Ltd. 1,966,187 1,978,053

15,490,615 13,552,764

Mexico – 2.1%63,222 America Movil SAB de CV, Series L, ADR 3,043,244 3,188,500

883,200 Wal-Mart de Mexico SAB de CV, Series V 1,490,794 2,081,050

4,534,038 5,269,550

Netherlands – 1.1%239,600 Reed Elsevier NV 3,849,476 2,812,544

Russia – 0.7%91,000 OAO Gazprom, Sponsored ADR 3,811,119 1,820,333


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FairValue ($)

FOREIGN EQUITIES (cont’d)Singapore – 2.1%

517,500 DBS Group Holdings Limited 5,534,592 5,336,660

South Africa – 3.1%153,888 Naspers Limited N Shares 3,388,071 5,493,249158,218 Standard Bank Group Limited 2,049,797 2,257,707

5,437,868 7,750,956

South Korea – 1.6%24,639 Mirae Asset Securities Co., Ltd. 1,303,510 1,146,914

8,400 Samsung Electronics Co., Ltd. GDR 2,107,770 2,794,905

3,411,280 3,941,819

Sweden – 4.7%274,556 Atlas Copco AB, Class B 4,481,333 3,871,475120,406 Investor AB, Class B 3,056,377 2,074,720221,615 Svenska Handelsbanken AB 5,977,835 5,778,731

13,515,545 11,724,926

Switzerland – 8.0%111,500 ABB Limited 2,992,715 2,061,43495,195 Compagnie Financiere Richemont AG 2,967,855 3,523,66742,500 GAM Holding Ltd. 669,877 471,95742,500 Julius Baer Group Ltd. 2,310,877 1,287,383

105,514 Nestle SA 4,657,864 5,416,59081,498 Schindler Holdings AG 5,627,891 7,290,904

19,227,079 20,051,935

Taiwan – 1.2%290,596 Taiwan Semiconductor Manufacturing Company Ltd. ADR 3,136,661 3,016,450

Turkey – 1.9%115,200 Anadolu Efes Biracilik ve Malt Sanayii AS 1,364,471 1,430,99155,242 BIM Birlesik Magazalar AS 1,519,248 1,623,906

391,900 Turkiye Garanti Bankasi AS 1,156,713 1,727,390

4,040,432 4,782,287

United Kingdom – 10.5%57,700 Aggreko PLC 682,779 1,281,67691,057 British American Tobacco PLC 3,405,155 3,067,885

225,060 Bunzl PLC 2,982,229 2,388,053352,250 Cairn Energy PLC 1,831,303 2,293,105315,027 HSBC Holdings PLC 4,006,580 3,057,989494,800 Man Group PLC 3,297,294 1,741,669432,000 Prudential PLC 4,296,680 3,445,169

28,791,630 Rolls-Royce Group C Shares Restricted* – 45,771319,907 Rolls-Royce Group PLC 3,298,079 2,834,582939,227 Vodafone Group PLC 3,303,871 2,070,883202,033 Wolseley PLC 8,086,285 4,202,712

35,190,255 26,429,494




NET ASSETS – 100.0% 250,853,977





Australia 1.4 1.0Belgium 1.4 1.7Bermuda – 0.8Brazil 5.8 6.8Canada 2.0 2.1China 2.2 2.7Denmark 1.3 1.0Egypt 0.7 0.6France 0.5 1.5Germany 1.4 2.2Hong Kong 1.6 1.6Ireland 0.9 0.9Israel 0.9 0.9Japan 5.4 6.6Mexico 2.1 2.0Netherlands 1.1 1.2Russia 0.7 1.6Singapore 2.1 2.2South Africa 3.1 3.4South Korea 1.6 1.1Sweden 4.7 4.7Switzerland 8.0 8.2Taiwan 1.2 0.9Turkey 1.9 1.2United Kingdom 10.5 9.8United States 32.1 32.4


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June 30, 2010 December 31, 2009

U.S. Dollar 109,933,119 43.8 120,341,566 47.5British Pound 27,684,088 11.0 25,807,493 10.2Swiss Franc 20,051,937 8.0 20,847,835 8.2Japanese Yen 13,634,684 5.4 16,632,107 6.6European Euro 12,031,027 4.8 18,213,779 7.2Swedish Krona 11,724,927 4.7 12,001,233 4.7South African Rand 7,750,959 3.1 8,572,680 3.4Brazilian Real 6,783,821 2.7 3,500,250 1.4Hong Kong Dollar 5,893,489 2.3 6,197,161 2.4Singapore Dollar 5,336,661 2.1 5,668,659 2.2Turkish Lira 4,782,286 1.9 3,096,800 1.2Australian Dollar 3,498,358 1.4 2,416,040 1.0Danish Krone 3,338,406 1.3 2,572,829 1.0Mexican Peso 2,081,050 0.8 2,063,654 0.8Egyptian Pound 1,697,213 0.7 1,488,291 0.6South Korean Won 1,146,914 0.5 – –Norwegian Krone – – 1,962,935 0.8

Total 237,368,939 94.5 251,383,312 99.2

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$23,736,894 approximately 9.5% of total net assets, (December 31, 2009 –$25,138,331 approximately 9.9% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.


BenchmarkImpact on


Net Assets (%)

June 30, 2010

Morgan Stanley CapitalInternational All Country World Index 52,679,335 21.0

BenchmarkImpact on


Net Assets (%)

December 31, 2009

Morgan Stanley CapitalInternational World Index 53,749,685 21.2



June 30, 2010 December 31, 2009




Equities $110,701,945 $126,584,852 $ – $237,286,797


Equities $115,537,256 $135,806,964 $ – $251,344,220



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Scotia Global Small Cap Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $36,570,182 $37,192,693Cash 1,388,028 1,074,316Accrued investment income 31,076 14,597Subscriptions receivable 5,105 625

37,994,391 38,282,231

LIABILITIESRedemptions payable 1,000 –Accrued expenses 9,221 4,932

10,221 4,932

Net Assets $37,984,170 $38,277,299

NET ASSETS PER CLASSClass A Units $ 2,057,325 $ 2,190,402Class I Units $35,926,845 $36,086,897

UNITS OUTSTANDINGClass A Units 372,303 374,816Class I Units 6,361,309 6,116,016



2010 2009INVESTMENT INCOMEDividends $ 411,387 $ 1,286,728Interest 5 33,571Foreign withholding taxes/Tax reclaims (56,133) (150,650)

355,259 1,169,649



56,972 87,309


Net realized gain (loss) on investments sold (862,321) (18,832,912)Net realized gain (loss) on foreign exchange (46,459) 65,597Transaction costs (67,480) (164,626)Change in unrealized appreciation (depreciation) of investments (962,733) 22,718,094



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (118,467) $ 89,394Class I Units $(1,522,239) $ 4,779,099

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.32) $ 0.25Class I Units $ (0.24) $ 0.31


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 2,190,402 $ 1,887,194Class I Units 36,086,897 83,820,907

38,277,299 85,708,101

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (118,467) 89,394Class I Units (1,522,239) 4,779,099

(1,640,706) 4,868,493


Class A Units 204,930 149,381Class I Units 3,058,113 5,085,036

Payments on redemptionClass A Units (219,540) (124,957)Class I Units (1,695,926) (1,471,375)

1,347,577 3,638,085

INCREASE (DECREASE) IN NET ASSETSClass A Units (133,077) 113,818Class I Units (160,052) 8,392,760

(293,129) 8,506,578


$37,984,170 $94,214,679


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AverageCost ($)

FairValue ($)


26,900 TransGlobe Energy Corporation 219,683 209,282

Materials – 2.0%41,100 Capstone Mining Corp. 122,279 88,36514,300 Cascades Inc. 105,936 91,66319,400 Grande Cache Coal Corporation 127,765 105,73061,800 Lundin Mining Corporation 195,071 186,018

2,600 West Fraser Timber Co. Ltd. 109,134 86,00845,800 Western Coal Corporation 141,139 190,528

801,324 748,312

Industrials – 0.4%9,300 Westshore Terminals Income Fund 120,338 160,983

Consumer Discretionary – 0.5%3,800 Dorel Industries Inc., Class B 105,398 126,5022,900 Sears Canada Inc. 75,593 74,820

180,991 201,322

Financials – 1.6%7,700 DundeeWealth Inc. 108,947 103,5653,200 Home Capital Group Inc. 104,975 134,9449,000 Laurentian Bank of Canada 343,679 379,078

557,601 617,587

Information Technology – 0.7%4,000 Constellation Software Inc. 108,281 162,4405,000 MOSAID Technologies Incorporated 119,075 98,750

227,356 261,190



14,800 Approach Resources Inc. 121,431 108,2954,000 Concho Resources Inc. 180,145 235,3428,900 Frontier Oil Corporation 181,649 127,028

10,600 Lufkin Industries, Inc. 420,857 439,55833,100 Newpark Resources, Inc 211,439 212,277

6,500 Rowan Companies, Inc. 198,289 151,672

1,313,810 1,274,172

Materials – 6.1%16,500 Cabot Corporation 427,576 422,919

9,600 Huntsman Corporation 120,906 88,3171,000 NewMarket Corporation 116,921 92,837

61,000 Omnova Solutions Inc. 247,220 505,38737,235 P.H. Glatfelter Co. 499,251 429,673

4,600 Quaker Chemical Corporation 113,769 132,5332,000 Rock-Tenn Company 108,256 105,653

24,600 Temple-Inland Inc. 355,515 540,794

1,989,414 2,318,113

Industrials – 8.1%8,600 Esterline Technologies Corporation 409,999 434,002

12,900 GenCorp Inc. 111,580 60,09315,500 Great Lakes Dredge & Dock Company 111,645 98,745

3,400 IDEX Corporation 114,685 103,2025,200 Kadant Inc. 116,487 96,2303,900 KBR, Inc. 121,776 84,2849,300 Lennox International Inc. 424,452 411,1689,700 Lincoln Electric Holdings, Inc. 565,632 526,0343,800 M&F Worldwide Corp. 119,403 109,3228,600 Mueller Industries, Inc. 241,792 225,0041,400 NACCO Industries, Inc. 128,672 132,1612,900 Oshkosh Corporation 111,174 96,106


AverageCost ($)

FairValue ($)

FOREIGN EQUITIES (cont’d)United States (cont’d)Industrials (cont’d)

3,400 Pentair, Inc. 116,655 116,25621,000 Timken Company, The 553,504 579,803

3,247,456 3,072,410

Consumer Discretionary – 2.6%4,500 Aeropostale, Inc. 86,935 137,070

21,500 Crocs, Inc. 184,662 241,9252,600 Jos. A. Bank Clothiers, Inc. 115,346 149,2395,500 Shoe Carnival, Inc. 135,698 119,9736,600 Skechers U.S.A., Inc. 222,956 256,0683,600 Thor Industries, Inc. 116,666 90,933

862,263 995,208

Health Care – 10.1%3,200 Almost Family, Inc. 117,708 118,8454,100 AMERIGROUP Corporation 116,645 141,5878,700 Bruker Corporation 123,131 112,5154,000 Coventry Health Care, Inc. 252,561 75,2149,700 DaVita, Inc. 553,703 644,1562,300 Emergency Medical Services Corporation 118,224 119,9117,600 Endo Pharmaceuticals Holdings Inc. 183,899 176,370

42,000 Five Star Quality Care, Inc. 156,329 134,9004,000 Gentiva Health Services, Inc. 116,302 114,906

10,800 Hi-Tech Parmacal Co., Inc. 95,862 262,5775,550 Lincare Holdings Inc. 127,692 191,8963,900 Myriad Genetics, Inc. 106,220 62,0104,800 Par Pharmaceutical Cos Inc. 114,541 132,5263,000 Sirona Dental Systems, Inc. 117,689 111,162

31,400 Sun Healthcare Group, Inc. 422,016 269,83512,900 U.S. Physical Therapy, Inc. 213,926 231,589

4,600 Universal Health Services, Inc., Class B 136,972 186,64217,500 Watson Pharmaceuticals, Inc. 485,575 754,719

3,558,995 3,841,360

Financials – 4.0%1,900 Allied World Assurance Company Holdings, Ltd. 88,794 91,6813,700 American Physicians Service Group, Inc. 85,318 95,7025,600 CNA Surety Corporation 110,576 95,5327,100 EZCORP, Inc. 135,651 139,999

30,572 Nelnet, Inc. 488,879 625,9092,900 Platinum Underwriters Holdings, Ltd 92,199 111,9294,400 Transatlantic Holdings, Inc. 291,807 223,9664,800 Unitrin, Inc. 87,939 130,689

1,381,163 1,515,407

Information Technology – 14.7%9,900 Arrow Electronics, Inc. 316,565 235,3266,000 Benchmark Electronics, Inc. 129,221 101,143

14,100 Brightpoint, Inc. 116,191 104,9725,400 Checkpoint Systems, Inc. 123,457 99,701

60,500 Compuware Corporation 580,595 512,82611,300 CTS Corporation 121,967 111,04714,300 DDi Corp. 119,671 114,52225,900 DivX, Inc. 199,583 210,450

2,200 FactSet Research Systems Inc. 135,620 156,7434,600 FARO Technologies, Inc. 119,427 91,486

13,300 Harris Corporation 711,106 588,86413,500 Integrated Silicon Solution, Inc. 102,183 108,115

6,700 Interactive Intelligence, Inc. 77,900 116,7915,500 Itron, Inc. 385,043 361,324

37,600 Jabil Circuit, Inc. 564,008 531,45911,200 Keithley Instruments, Inc. 119,052 105,18125,300 Lattice Semiconductor Corporation 124,134 116,780

3,900 Multi-Fineline Electronix, Inc. 89,144 103,53018,800 Newport Corporation 225,337 181,152


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FairValue ($)

FOREIGN EQUITIES (cont’d)United States (cont’d)Information Technology (cont’d)

3,800 Park Electrochemical Corp. 117,096 98,4913,600 Plantronics, Inc. 101,990 109,5034,100 Progress Software Corporation 132,405 130,903

13,000 SanDisk Corporation 295,053 580,28221,800 SonicWALL, Inc. 124,736 271,964

7,000 TeleTech Holdings, Inc. 87,506 95,9643,500 Tessera Technologies Inc. 98,958 59,745

27,800 TriQuint Semiconductor, Inc. 193,204 180,65214,100 Vishay Intertechnology, Inc. 92,525 115,769

5,603,677 5,594,685

Telecommunication Services – 0.4%7,300 Syniverse Holdings Inc. 121,196 158,694

Utilities – 1.3%17,900 UGI Corporation 468,009 484,314


Australia – 3.9%37,800 Boart Longyear Group 123,947 94,739

960,600 Charter Hall Group 633,873 512,37110,700 Flight Centre Limited 189,469 157,507

108,400 Hills Industrials Limited 282,966 206,49477,500 IOOF Holdings Limited 295,822 409,807

164,000 Minara Resources Limited 152,411 95,108

1,678,488 1,476,026

Belgium – 0.2%7,400 Nyrstar 115,699 80,948

Bermuda – 1.0%2,800 Axis Capital Holdings Limited 104,677 88,5049,300 Nordic American Tanker Shipping Limited 278,295 277,343

382,972 365,847

China – 0.4%238,000 China Gas Holdings Ltd. 126,672 141,700

Denmark – 0.2%2,000 NKT Holdings A/S 131,560 94,753

France – 3.7%2,800 Boiron SA 111,245 104,8312,500 Euler Hermes SA 178,934 166,641

23,000 Havas SA 107,478 107,0833,800 Legrand SA 113,515 119,1258,300 SEB SA 547,458 567,0899,000 Societe Television Francaise 1 152,961 125,1593,700 Technip SA 258,773 224,169

1,470,364 1,414,097

Germany – 2.6%10,900 Aixtron AG 279,136 274,804

2,500 Hannover Rueckversicherung AG 111,762 114,5948,800 Lanxess AG 411,101 397,4141,558 Schaltbau Holding AG 85,527 87,1401,100 Software AG 91,027 119,730

978,553 993,682

Hong Kong – 1.9%403,000 Chow Sang Sang Holdings International Limited 429,514 723,533

Italy – 3.5%29,600 Ansaldo STS SpA 510,671 502,908

143 Azimut Holding SpA 1,244 1,25524,900 Banca Generali SpA 254,251 252,76221,600 David Campari – Milano SpA 90,051 112,74838,000 Indesit Company SpA 533,922 450,544

1,390,139 1,320,217


AverageCost ($)

FairValue ($)

FOREIGN EQUITIES (cont’d)Japan – 10.6%

14,000 Central Glass Corporation Ltd. 62,141 58,7099,600 Century Tokyo Leasing Corporation 93,120 122,995

56,000 Chubu Shiryo Co., Ltd. 531,119 421,50033,000 Chuetsu Pulp & Paper Co., Ltd. 96,473 66,403

5,500 cocokara fine HOLDINGS Inc. 106,042 105,43442,000 Daiichikosho Co., Ltd. 447,913 644,151

4,452 Fuyo General Lease Co Ltd. 119,648 108,32316,000 Hitachi Capital Corporation 180,135 225,57622,000 Itochu Enex Co., Ltd. 123,978 120,726

117,000 Juroku Bank, Ltd., The 479,022 438,94526,000 Kaken Pharmaceutical Co., Ltd. 234,307 274,76720,000 Keihanshin Real Estate Co., Ltd. 79,428 93,752

5,000 Kyorin Co., Ltd. 87,079 76,8874,000 MACNICA, Inc. 88,220 80,480

62,000 Nippo Corporation 590,216 489,1881,000 Okinawa Electric Power Company, Incorporated, The 82,897 53,6854,800 Ricoh Leasing Company, Ltd. 115,834 115,978

52,000 Toyo Tire & Rubber Co., Ltd. 119,596 116,77424,200 UNIPRES CORPORATION 223,974 401,758

3,861,142 4,016,031

Spain – 2.7%1,099 Construcciones y Auxiliar de Ferrocarriles SA 480,137 472,9274,800 Corporacion Financiera Alba, SA 299,981 188,657

11,200 Obrascon Huarte Lain SA 331,666 261,9903,700 Viscofan, SA 87,173 106,341

1,198,957 1,029,915

Switzerland – 2.8%25,300 Clariant, AG 333,034 341,039

900 Ems-Chemie Holding AG 112,253 123,966900 Schweiter Technologies AG 510,762 482,352

161,300 Swisslog Holding AG 135,999 132,381

1,092,048 1,079,738

United Kingdom – 6.3%103,400 Barratt Developments PLC 265,973 152,03524,600 Bellway PLC 355,493 239,04796,800 BlueBay Asset Management PLC 518,530 441,094

281,200 Debenhams PLC 435,555 235,21533,400 Ferrexpo PLC 146,200 130,23852,300 Pace PLC 183,757 133,33977,800 Paragon Group Companies PLC 207,860 147,967

6,400 Petropavlovsk PLC 113,397 119,955132,700 Senior PLC 262,394 258,10680,000 Tullett Prebon PLC 559,316 399,508

7,600 Weir Group PLC, The 110,221 124,152

3,158,696 2,380,656




NET ASSETS – 100.0% 37,984,170


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Australia 3.9 2.6Belgium 0.2 –Bermuda 1.0 0.7Canada 5.8 6.2China 0.4 –Denmark 0.2 0.3Finland – 0.4France 3.7 3.5Germany 2.6 2.6Hong Kong 1.9 3.3Italy 3.5 3.1Japan 10.6 9.8Netherlands – 0.4Portugal – 0.3Spain 2.7 3.5Sweden – 0.3Switzerland 2.8 3.6United Kingdom 6.3 7.9United States 50.7 48.7







June 30, 2010 December 31, 2009

U.S. Dollar 19,961,816 52.6 19,301,158 50.4European Euro 4,973,230 13.1 5,155,850 13.5Japanese Yen 4,067,449 10.7 3,916,210 10.2British Pound 2,380,669 6.3 3,267,025 8.5Swiss Franc 1,754,490 4.6 1,363,467 3.6Hong Kong Dollar 1,087,755 2.9 1,276,735 3.3Australian Dollar 1,032,676 2.7 1,142,475 3.0Swedish Krona 101,967 0.3 136,151 0.4Danish Krone 112,607 0.3 123,959 0.3Norwegian Krone 225 0.0 250 0.0Singapore Dollar 165 0.0 163 0.0

Total 35,473,049 93.5 35,683,443 93.2

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by$3,547,305 approximately 9.4% of total net assets, (December 31, 2009 –$3,568,344 approximately 9.3% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.


BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P/Citigroup World ExtendedMarket Index 6,989,087 6,966,468 18.4 18.2



June 30, 2010 December 31, 2009




Equities $21,818,886 $14,751,296 $ – $36,570,182


Equities $21,133,909 $16,058,784 $ – $37,192,693



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Scotia Global Opportunities Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $65,620,251 $66,752,597Cash 4,009,733 1,281,871Accrued investment income 98,889 271,980Receivable for securities sold – 1,019,206Subscriptions receivable 24,026 2,301Receivable for currency forward contracts 357,883 24,469

70,110,782 69,352,424

LIABILITIESPayable for securities purchased 325,541 500,914Redemptions payable 1,379 3,382Accrued expenses 18,542 9,241

345,462 513,537

Net Assets $69,765,320 $68,838,887

NET ASSETS PER CLASSClass A Units $ 5,477,700 $ 5,363,835Advisor Class Units $ 23,964 $ 14,639Class F Units $ – $ 20,625Class I Units $64,263,656 $63,439,788

UNITS OUTSTANDINGClass A Units 764,622 725,925Advisor Class Units 3,442 2,039Class F Units – 2,855Class I Units 8,807,385 8,541,903

NET ASSETS PER UNITClass A Units $ 7.16 $ 7.39Advisor Class Units $ 6.96 $ 7.18Class F Units $ – $ 7.22Class I Units $ 7.30 $ 7.43



640,893 1,210,265EXPENSESManagement fees (note 5) 61,501 46,103Audit fees 9,210 10,197Independent Review Committee fees 50 53Custodian fees 5,164 7,267Filing fees 13,338 14,855Legal fees 1,716 2,529Unitholder reporting costs 4,387 4,809Unitholder administration, service fees and GST 27,974 28,404Overdraft charges 543 13


113,040 94,840Net investment income (loss) 527,853 1,115,425Net realized gain (loss) on investments sold 6,810,578 (11,908,503)Net realized gain (loss) on currency forwards 183,205 603,128Net realized gain (loss) on foreign exchange (123,660) (189,298)Transaction costs (97,302) (80,109)Change in unrealized appreciation (depreciation) of investments (8,873,957) 18,326,436Change in unrealized appreciation (depreciation) of currency forwards 333,414 (478,393)Net gain (loss) on investments and transaction costs (1,767,722) 6,273,261Increase (decrease) in Net Assets from operations $(1,239,869) $ 7,388,686

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (191,954) $ 467,483Advisor Class Units $ (1,312) $ 1,260Class F Units $ 965 $ (664)Class I Units $(1,047,568) $ 6,920,607INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.26) $ 0.64Advisor Class Units $ (0.44) $ 0.62Class F Units $ 0.34 $ (0.80)Class I Units $ (0.12) $ 0.74


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 5,363,835 $ 4,428,519Advisor Class Units 14,639 11,792Class F Units 20,625 5,103Class I Units 63,439,788 56,006,064

68,838,887 60,451,478

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (191,954) 467,483Advisor Class Units (1,312) 1,260Class F Units 965 (664)Class I Units (1,047,568) 6,920,607

(1,239,869) 7,388,686


Class A Units 870,838 252,489Advisor Class Units 13,000 –Class I Units 3,395,305 3,708,605

Payments on redemptionClass A Units (565,019) (328,044)Advisor Class Units (2,363) –Class F Units (21,590) (4,439)Class I Units (1,523,869) (7,169,118)

2,166,302 (3,540,507)

INCREASE (DECREASE) IN NET ASSETSClass A Units 113,865 391,928Advisor Class Units 9,325 1,260Class F Units (20,625) (5,103)Class I Units 823,868 3,460,094

926,433 3,848,179

NET ASSETS – END OF PERIODClass A Units 5,477,700 4,820,447Advisor Class Units 23,964 13,052Class F Units – –Class I Units 64,263,656 59,466,158

$69,765,320 $64,299,657


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As at June 30, 2010


AverageCost ($)

FairValue ($)


1,044,200 Telstra Corporation Limited 2,926,427 3,023,272Bermuda – 4.6%

283,085 Global Crossing Ltd. 3,973,141 3,182,354Brazil – 4.8%

239,500 BRF – Brasil Foods SA 3,262,750 3,340,285Canada – 3.4%

190,100 Ensign Resource Service, Inc. 2,541,077 2,376,250China – 0.6%

152,967 China Merchants Bank Co., Ltd., Class H 292,611 388,724Hong Kong – 3.0%

103,000 China Mobile Limited 1,239,795 1,091,7852,186,000 China Resources Cement Holding Limited 1,165,154 970,860

2,404,949 2,062,645Israel – 3.5%

43,500 Teva Pharmaceutical Industries Ltd. ADR 2,207,808 2,405,281Italy – 1.6%

58,300 Eni SpA 1,939,159 1,138,794Japan – 2.8%

159,900 Tokyo Steel Manufacturing Co., Ltd. 2,017,522 1,968,708Netherlands – 3.3%

291,400 ING Groep NV 2,853,248 2,302,117Russia – 1.9%

67,800 OAO Gazprom, Sponsored ADR 2,075,700 1,356,248Switzerland – 10.5%

37,700 Liechtensteinische Landesbank AG 2,584,984 2,526,4372,400 Roche Holdings AG 395,114 350,651

52,300 Swiss Reinsurance Company Ltd. 2,489,207 2,288,994


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Switzerland (cont’d)

17,100 Verwaltings-und Privat-Bank AG 1,934,830 2,139,9367,404,135 7,306,018

United Kingdom – 7.9%351,325 Telecity Group PLC 1,379,617 2,226,482103,000 Willis Group Holdings Limited 3,151,763 3,291,837

4,531,380 5,518,319United States – 41.9%

61,500 Amdocs Limited 1,526,418 1,756,208229,164 Apollo Investment Corporation 2,413,043 2,273,970172,700 Bank of America Corporation 3,282,073 2,637,567221,700 Dell Inc. 4,241,590 2,841,25011,082 Eclipsys Corporation 223,567 209,91370,500 ENSCO PLC 2,609,593 2,945,217

146,900 Fifth Third Bancorp 1,232,425 1,920,1294,885 Google Inc. 2,481,103 2,311,341

80,400 Hartford Financial Services Group, Inc., The 1,667,931 1,888,89824,464 KeyCorp 184,537 199,563

343,600 KKR Financial Holdings LLC 2,246,787 2,722,489891,083 Level 3 Communications, Inc. 1,716,076 1,014,048114,100 Spirit AeroSystems Holdings Inc. 1,940,436 2,310,517130,276 Trinity Industries, Inc. 2,349,349 2,455,18830,833 United States Steel Corporation 1,673,326 1,262,50517,700 Walgreen Co. 574,338 502,433

30,362,592 29,251,236TOTAL INVESTMENT PORTFOLIO 68,792,499 65,620,251

Currency Forward Contracts – 0.5% 357,883OTHER ASSETS, LESS LIABILITIES – 5.4% 3,787,186NET ASSETS – 100.0% 69,765,320





June 30, 2010 ($)


(Depreciation)Jun. 10, 2010 U.S. Dollar 3,178,903 Swiss Franc 3,356,000 3,317,252 63,661Aug. 23, 2010 U.S. Dollar 3,329,918 European Euro 2,450,000 3,187,583 353,940Sep. 12, 2010 U.S. Dollar 1,408,846 Japanese Yen 129,119,300 1,558,091 (59,718)

357,883





Australia 4.3 –Austria – 2.1Bermuda 4.6 9.6Brazil 4.8 –Canada 3.4 –China 0.6 0.9Germany – 0.5Hong Kong 3.0 4.8Israel 3.5 5.2Italy 1.6 2.2Japan 2.8 2.3Luxembourg – 1.0Netherlands 3.3 3.2Russia 1.9 2.6Switzerland 10.5 6.5United Kingdom 7.9 3.2United States 41.9 43.4Bond and Debenture Instruments – 9.5Currency Forward Contracts 0.5 0.0


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127

Scotia Global Opportunities Fund (Unaudited – Continued)




Less than 1 year $ – $ –1-3 years – –3-5 years – –5-10 years – 6,527,858H 10 years – –

Total $ – $6,527,858


As at June 30, 2010, there were no bond and debenture instruments held bythe Fund, therefore there was no interest rate exposure for the current period.However, as at December 31, 2009, had the prevailing interest rates increasedor decreased by 0.25%, assuming a parallel shift in the yield curve and all othervariables held constant, Net Assets would have decreased or increasedapproximately $155,023, 0.2% of the total net assets. In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.






June 30, 2010 December 31, 2009

U.S. Dollar 48,015,980 68.8 54,245,524 78.8Swiss Franc 4,197,433 6.0 1,757,215 2.5Brazailian Real 3,340,349 4.8 65 0.0Australian Dollar 3,023,272 4.3 – –Hong Kong Dollar 2,477,985 3.6 3,902,596 5.7British Pound 2,226,482 3.2 2,181,833 3.2Japanese Yen 419,561 0.6 57,559 0.1European Euro 285,568 0.4 2,558,429 3.7Norwegian Krone 26 0.0 2,371,680 3.4

Total 63,986,656 91.7 67,074,901 97.4



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley CapitalInternational All CountryWorld Index 15,906,493 15,695,266 22.8 22.8








June 30, 2010 December 31, 2009

Unrated – – 100.0 0.8


Less than 3 months Less than 3 months 3 months to 1 year

June 30, 2010 December 31, 2009

Accounts payable andaccrued liabilities $345,462 $513,537 $ –

Currency forwardcontracts 59,718 47,697 14,481

$405,180 $561,234 $14,481



Equities $ 43,847,243 $ 21,773,008 $ – $ 65,620,251Currency Forward Contracts – 357,883 – 357,883

$43,847,243 $22,130,891 $ – $65,978,134


Equities $ 38,375,531 $ 21,849,208 $ – $ 60,224,739Bond and Debenture Instruments – 6,527,858 – 6,527,858Currency Forward Contracts – 24,469 – 24,469

$38,375,531 $28,401,535 $ – $66,777,066



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Scotia Global Climate Change Fund (Unaudited)


June 30,2010

December 31,2009


39,484,212 38,251,685


24,539 16,985

Net Assets $39,459,673 $38,234,700

NET ASSETS PER CLASSClass A Units $ 7,601,948 $ 8,260,485Advisor Class Units $ 347,585 $ 423,594Class I Units $31,510,140 $29,550,621

UNITS OUTSTANDINGClass A Units 1,158,367 1,120,591Advisor Class Units 52,966 57,463Class I Units 4,719,995 3,988,171



2010 2009INVESTMENT INCOMEDividends $ 525,290 $ 118,635Interest 144 431Foreign withholding taxes/Tax reclaims (89,347) (20,758)

436,087 98,308

EXPENSESManagement fees (note 5) 85,054 74,469Audit fees 6,617 6,816Independent Review Committee fees 89 82Custodian fees 7,082 7,562Filing fees 13,329 13,451Legal fees 1,802 3,099Unitholder reporting costs 4,666 11,876Unitholder administration, service fees and GST 31,948 31,438Overdraft charges 238 1,135


142,074 89,358


Net realized gain (loss) on investments sold (738,199) (199,492)Net realized gain (loss) on foreign exchange (33,153) (6,587)Transaction costs (31,849) (8,661)Change in unrealized appreciation (depreciation) of investments (3,601,051) 505,915

Net gain (loss) on investments and transaction costs (4,404,252) 291,175

Increase (decrease) in Net Assets from operations $(4,110,239) $ 300,125

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (926,242) $ 294,019Advisor Class Units $ (45,633) $ 6,106Class I Units** $(3,138,364) $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.80) $ 0.26Advisor Class Units $ (0.81) $ 0.10Class I Units** $ (0.72) $ –


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 8,260,485 $6,998,639Advisor Class Units 423,594 424,649Class I Units** 29,550,621 –

38,234,700 7,423,288

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (926,242) 294,019Advisor Class Units (45,633) 6,106Class I Units** (3,138,364) –

(4,110,239) 300,125

DISTRIBUTIONS TO UNITHOLDERSUNIT TRANSACTIONSProceeds from issue

Class A Units 1,185,184 1,260,143Advisor Class Units 11,011 68,795Class I Units** 5,102,699 –

Payments on redemptionClass A Units (917,479) (322,698)Advisor Class Units (41,387) (96,497)Class I Units** (4,816) –

5,335,212 909,743

INCREASE (DECREASE) IN NET ASSETSClass A Units (658,537) 1,231,464Advisor Class Units (76,009) (21,596)Class I Units** 1,959,519 –

1,224,973 1,209,868

NET ASSETS – END OF PERIODClass A Units 7,601,948 8,230,103Advisor Class Units 347,585 403,053Class I Units** 31,510,140 –

$39,459,673 $8,633,156

* Start date September 8, 2009.


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129

As at June 30, 2010


AverageCost ($)

FairValue ($)


101,844 Arrow Energy Ltd. 357,971 440,84746,938 Sims Metal Management Ltd. 878,557 711,11010,125 Woodside Petroleum Limited 429,595 375,772

1,666,123 1,527,729

Belgium – 2.0%25,891 Umicore 773,913 797,176

Brazil – 5.8%62,900 Aes Tiete SA, Preference 724,246 767,18615,700 Companhia de Saneamento Basico do Estado de

Sao Paulo ADR 592,438 689,44766,100 Tractebel Energia SA 743,410 816,732

2,060,094 2,273,365

Finland – 2.2%50,700 Lassila & Tikanoja Oyj 1,045,735 869,906

France – 10.3%16,871 Alstom SA 1,277,484 825,90116,505 Compagnie de Saint-Gobain 764,136 648,46113,620 Electricite de France SA 797,596 550,75719,296 GDF Suez 913,224 580,914

4,531 Nexans SA 355,311 278,7615,875 Schneider Electric SA 642,493 632,738

30,660 Suez Environment Co. 715,963 537,465

5,466,207 4,054,997

Germany – 6.8%6,563 Allianz SE 800,101 691,490

36,321 CENTROTEC Sustainable AG 536,842 606,9257,396 Muenchener Rueckversicherungs-Gesellschaft AG 1,189,061 984,7733,639 SMA Solar Technology AG 346,484 396,009

2,872,488 2,679,197

Italy – 0.9%23,363 Prysmian SpA 425,213 357,128

Japan – 10.8%59,900 Bridgestone Corporation 1,061,040 1,010,01210,700 East Japan Railway Company 785,847 758,63685,000 Kubota Corporation 738,905 690,38321,500 Kurita Water Industries Ltd. 599,022 624,60625,800 Shimano Inc. 1,166,719 1,175,472

4,351,533 4,259,109

Netherlands – 1.5%18,632 Koninklijke Philips Electronics NV 536,782 590,956

Norway – 1.9%168,489 Tomra Systems ASA 829,556 748,297

Philippines – 2.0%2,207,000 Manila Water Company 791,596 818,770

Singapore – 1.9%298,000 Hyflux Limited 623,222 731,766

Switzerland – 1.6%2,660 Syngenta AG 696,604 653,523

United Kingdom – 3.3%252,866 eaga PLC 641,421 457,439144,140 FirstGroup PLC 944,486 829,764

1,585,907 1,287,203


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)United States – 43.2%

32,651 AGCO Corporation 1,063,916 936,55755,519 CA, Inc. 1,279,324 1,086,46646,149 Calgon Carbon Corporation 747,721 649,35029,800 Cameco Corporation 810,889 674,44235,546 Cisco Systems, Inc. 889,843 805,24317,721 Deere & Company 936,283 1,048,46533,088 eBay Inc. 842,143 690,088

9,497 Exelon Corporation 497,469 383,41536,141 Informatica Corporation 918,803 917,89140,577 Intel Corporation 866,676 838,944

2,857 IntercontinentalExchange Inc. 278,511 343,41720,925 ITT Corporation 1,145,303 998,56930,047 Johnson Controls, Inc. 888,046 858,02918,109 Metabolix, Inc. 213,802 275,60711,200 Monsanto Company 941,721 550,32211,804 Norfolk Southern Corporation 594,515 665,87013,296 Ormat Technologies Inc. 497,665 399,34013,385 Praxair, Inc. 1,090,603 1,081,47718,768 Roper Industries, Inc. 975,629 1,116,39818,322 STR Holdings Inc. 377,939 365,75816,560 Travelers Companies, Inc., The 900,254 867,05511,541 Union Pacific Corporation 775,459 852,57919,559 Waste Management, Inc. 657,602 650,268

18,190,116 17,055,550



NET ASSETS – 100.0% 39,459,673




Australia 3.9 0.7Austria – 1.5Belgium 2.0 0.9Brazil 5.8 5.0Denmark – 1.2Finland 2.2 1.4France 10.3 13.4Germany 6.8 9.7Italy 0.9 0.9Japan 10.8 7.3Netherlands 1.5 1.4Norway 1.9 1.8Philippines 2.0 1.9Singapore 1.9 1.7Spain – 3.0Switzerland 1.6 3.8United Kingdom 3.3 3.0United States 43.2 39.8


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130

Scotia Global Climate Change Fund (Unaudited – Continued)


Currency risk (note 3)The table below indicates the currencies to which the Fund had significantexposure, net of the impact of foreign currency forward contacts, if any, basedon the fair value of the Fund’s financial instruments.





June 30, 2010 December 31, 2009

U.S. Dollar 18,132,615 46.0 15,936,773 41.7European Euro 9,599,172 24.3 12,324,443 32.2Japanese Yen 4,278,317 10.8 2,800,378 7.3Brazilian Real 1,583,918 4.0 1,308,991 3.4Australian Dollar 1,527,731 3.9 253,392 0.7British Pound 1,300,451 3.3 1,164,049 3.0Philippines Peso 826,898 2.1 747,700 2.0Norwegian Krone 759,710 1.9 698,257 1.8Singapore Dollar 741,875 1.9 659,321 1.7Swiss Franc 663,251 1.7 1,440,910 3.8South African Rand 1 0.0 – –Danish Krone – – 446,806 1.2

Total 39,413,939 99.9 37,781,020 98.8



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley Capital InternationalWorld Index 8,996,805 8,793,981 22.8 23.0



June 30, 2010 December 31, 2009




Equities $19,328,915 $19,375,757 $ – $38,704,672


Equities $17,124,342 $20,499,353 $ – $37,623,695



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131

Scotia Canadian Bond Index Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $305,107,622 $283,995,992Cash 59,016 2,320,131Accrued investment income 1,943,704 1,903,999Receivable for securities sold 944,867 –Subscriptions receivable 357,785 847,191

308,412,994 289,067,313

LIABILITIESPayable for securities purchased 2,074,316 2,095,745Distributions payable 18,041 10Redemptions payable 227,281 1,806,545Accrued expenses 173,160 83,482

2,492,798 3,985,782

Net Assets $305,920,196 $285,081,531

NET ASSETS PER CLASSClass A Units $257,860,216 $230,480,791Class F Units $ 48,941 $ 268,020Class I Units $ 48,011,039 $ 54,332,720




2010 2009INVESTMENT INCOMEInterest $ 6,291,919 $3,591,751Securities lending 10,824 4,297

6,302,743 3,596,048

EXPENSESManagement fees (note 5) 876,247 400,429Audit fees 10,263 10,160Independent Review Committee fees 559 379Custodian fees 2,025 1,402Filing fees 12,637 8,931Legal fees 2,873 2,582Unitholder reporting costs 12,669 11,560Unitholder administration, service fees and GST 123,662 88,653Overdraft charges 24 –

1,040,959 524,096Absorbed expenses (1,237) (1,212)

1,039,722 522,884


Net realized gain (loss) on investments sold (333,957) 105,408Change in unrealized appreciation (depreciation) of investments 5,967,908 74,715

Net gain (loss) on investments and transaction costs 5,633,951 180,123


INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 8,882,105 $2,344,529Class F Units $ 4,214 $ 11,870Class I Units $ 2,010,653 $ 896,888

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.38 $ 0.22Class F Units $ 0.28 $ 0.23Class I Units $ 0.43 $ 0.23


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $230,480,791 $ 94,383,142Class F Units 268,020 501,645Class I Units 54,332,720 39,789,172

285,081,531 134,673,959

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 8,882,105 2,344,529Class F Units 4,214 11,870Class I Units 2,010,653 896,888

10,896,972 3,253,287


Class A Units (4,577,565) (2,304,254)Class F Units (2,953) (12,123)Class I Units (1,120,243) (1,001,958)

(5,700,761) (3,318,335)


Class A Units 63,183,793 56,240,081Class F Units 10,028 145,505Class I Units 1,759,617 13,351,598

Reinvested distributionsClass A Units 4,466,404 2,263,866Class F Units 2,954 9,060Class I Units 1,120,327 998,421

Payments on redemptionClass A Units (44,575,312) (13,609,344)Class F Units (233,322) (116,013)Class I Units (10,092,035) (3,510,044)

15,642,454 55,773,130

INCREASE (DECREASE) IN NET ASSETSClass A Units 27,379,425 44,934,878Class F Units (219,079) 38,299Class I Units (6,321,681) 10,734,905

20,838,665 55,708,082


$305,920,196 $190,382,041


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Scotia Canadian Bond Index Fund (Unaudited – Continued)



AverageCost ($)

FairValue ($)


35,000 Business Development Bank of Canada4.35% due Feb. 28, 2022 35,232 37,484


4,180,000 Canada Housing Trust No. 14.00% due Jun. 15, 2012 4,317,107 4,370,874






1,000,000 Canada Housing Trust No. 12.70% due Dec. 15, 2013 997,820 1,013,639



925,000 Canada Housing Trust No. 12.75% due Dec. 15, 2014 923,289 930,649




912,000 Canada Housing Trust No. 13.75% due Mar. 15, 2020 902,953 925,807



35,000 Canada Mortgage and Housing Corporation4.25% due Feb. 1, 2016 34,106 37,614

175,000 Export Development Canada5.75% due Jun. 1, 2011 178,547 182,318

400,000 Export Development Canada5.80% due Dec. 3, 2012 417,440 436,819



16,000 Farm Credit Canada4.00% due May 24, 2013 15,963 16,821



9,200,000 Government of Canada1.25% due Dec. 1, 2011 9,134,035 9,210,278





2,000,000 Government of Canada1.75% due Mar. 1, 2013 1,987,000 1,999,562



AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Federal Bonds (cont’d)


418,000 Government of Canada10.25% due Mar. 15, 2014 586,781 538,561



629,000 Government of Canada2.00% due Dec. 1, 2014 610,448 622,230



193,000 Government of Canada11.25% due Jun. 1, 2015 297,492 272,693














139,579,979 142,259,854

Provincial Bonds – 25.2%100,000 Alberta Capital Finance Authority

5.70% due Sep. 1, 2011 108,142 105,092260,000 Alberta Capital Finance Authority

5.85% due Jun. 1, 2012 261,454 280,203190,000 Alberta Capital Finance Authority




4.45% due Dec. 15, 2025 14,953 15,11988,000 Alberta Treasury Branches

4.10% due Jun. 1, 2011 87,245 90,35450,000 Alberta Treasury Branches

4.10% due Dec. 1, 2011 49,773 51,885150,000 Financement Quebec

3.50% due Dec. 1, 2016 147,149 150,805160,000 Financement-Quebec

5.25% due Dec. 1, 2011 162,203 168,561197,000 Financement-Quebec

4.25% due Mar. 1, 2014 194,073 208,703


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FairValue ($)


87,000 Financement-Quebec4.25% due Dec. 1, 2015 87,758 91,880

680,000 Financement-Quebec5.25% due Jun. 1, 2034 708,696 722,625

250,000 Hydro-Quebec6.50% due Feb. 15, 2011 256,435 258,379

340,000 Hydro-Quebec10.00% due Sep. 26, 2011 432,336 375,697

125,000 Hydro-Quebec10.25% due Jul. 16, 2012 167,094 146,028

350,000 Hydro-Quebec11.00% due Aug. 15, 2020 557,550 549,521

154,000 Hydro-Quebec10.50% due Oct. 15, 2021 238,623 240,831

160,000 Hydro-Quebec9.63% due Jul. 15, 2022 215,280 240,641

40,000 Hydro-Quebec6.00% due Aug. 15, 2031 37,938 47,101





40,000 Newfoundland and Labrador Hydro4.33% due Oct. 13, 2016 39,910 42,122

60,000 Newfoundland and Labrador Hydro10.25% due Jul. 14, 2017 83,494 84,666

175,000 Newfoundland and Labrador Hydro6.65% due Aug. 27, 2031 174,729 222,747

100,000 Ontario Electricity Financial Corporation10.00% due Feb. 6, 2020 137,618 147,388

140,000 Ontario Electricity Financial Corporation8.90% due Aug. 18, 2022 182,350 202,259

155,000 Ontario Electricity Financial Corporation8.50% due May 26, 2025 194,424 223,226

450,000 Ontario Electricity Financial Corporation8.25% due Jun. 22, 2026 651,076 640,745

40,000 Ontario School Boards Financing Corporation6.30% due Sep. 22, 2010 39,856 40,457

40,000 Ontario School Boards Financing Corporation5.30% due Nov. 7, 2013 40,000 43,437

25,000 Ontario School Boards Financing Corporation5.70% due Oct. 11, 2017 24,935 27,936

29,163 Ontario School Boards Financing Corporation5.90% due Oct. 11, 2027 29,010 31,985

43,956 Ontario School Boards Financing Corporation5.48% due Nov. 26, 2029 43,956 46,197

17,903 Ontario School Boards Financing Corporation4.79% due Aug. 8, 2030 17,903 17,665

23,689 Ontario School Boards Financing Corporation5.07% due Apr. 18, 2031 23,689 24,017

36,567 Ontario School Boards Financing Corporation5.38% due Jun. 25, 2032 36,567 37,991

100,000 Ontario Strategic Infrastructure Finance Authority4.60% due Jun. 1, 2015 99,699 106,393

70,000 Ornge Issuer Trust5.73% due Jun. 11, 2034 70,000 75,204

110,000 Province of Alberta4.00% due Dec. 1, 2019 109,107 112,524

200,000 Province of Alberta4.50% due Dec. 1, 2040 198,230 202,830

320,000 Province of British Columbia5.75% due Jan. 9, 2012 337,243 340,652


AverageCost ($)

FairValue ($)


275,000 Province of British Columbia8.50% due Aug. 23, 2013 330,705 326,640

80,000 Province of British Columbia5.30% due Jun. 18, 2014 79,504 88,271

90,000 Province of British Columbia4.70% due Dec. 1, 2017 89,674 97,034


1,500,000 Province of British Columbia4.65% due Dec. 18, 2018 1,566,100 1,605,249




290,000 Province of British Columbia6.15% due Nov. 19, 2027 273,508 350,598







100,000 Province of Manitoba5.85% due Jan. 25, 2011 99,708 102,725

50,000 Province of Manitoba5.25% due Dec. 3, 2012 49,883 53,875

46,000 Province of Manitoba4.25% due Jun. 3, 2013 45,822 48,618




1,082,000 Province of Manitoba4.30% due Mar. 1, 2016 1,136,824 1,149,798

1,050,000 Province of Manitoba4.70% due Sep. 22, 2017 1,119,261 1,131,516

45,000 Province of Manitoba4.25% due Mar. 5, 2018 44,811 47,052

40,000 Province of Manitoba4.75% due Feb. 11, 2020 39,630 42,696

300,000 Province of Manitoba4.15% due Jun. 3, 2020 298,998 305,907






60,000 Province of New Brunswick5.80% due Jul. 12, 2011 59,440 62,789

200,000 Province of New Brunswick5.85% due Dec. 1, 2011 210,300 212,376


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AverageCost ($)

FairValue ($)



100,000 Province of New Brunswick4.50% due Feb. 4, 2015 99,358 107,238

130,000 Province of New Brunswick8.75% due May 12, 2015 159,667 164,148


75,000 Province of New Brunswick4.70% due Jul. 21, 2016 74,439 80,926


1,000,000 Province of New Brunswick4.45% due Mar. 26, 2018 1,039,640 1,054,779

300,000 Province of New Brunswick4.40% due Jun. 3, 2019 300,184 312,212



90,000 Province of New Brunswick5.50% due Jan. 27, 2034 90,342 100,227

114,000 Province of New Brunswick4.65% due Sep. 26, 2035 115,272 113,433

180,000 Province of New Brunswick4.55% due Mar. 26, 2037 172,627 176,715

150,000 Province of New Brunswick4.80% due Sep. 26, 2039 150,668 153,571


50,000 Province of Newfoundland and Labrador6.40% due Jul. 25, 2011 49,858 52,682

75,000 Province of Newfoundland and Labrador10.13% due Nov. 22, 2014 102,518 97,560

65,000 Province of Newfoundland and Labrador10.95% due Apr. 15, 2021 96,801 103,204


1,050,000 Province of Newfoundland and Labrador6.55% due Oct. 17, 2030 1,288,861 1,316,948


117,000 Province of Newfoundland and Labrador4.65% due Oct. 17, 2040 112,981 118,289

85,000 Province of Nova Scotia6.40% due Sep. 1, 2010 85,256 85,757

150,000 Province of Nova Scotia6.25% due Jun. 1, 2011 149,454 156,886


40,000 Province of Nova Scotia4.70% due Jan. 14, 2015 39,877 43,163

60,000 Province of Nova Scotia4.60% due Aug. 18, 2016 59,648 64,387

120,000 Province of Nova Scotia4.15% due Nov. 25, 2019 119,035 122,119

75,000 Province of Nova Scotia4.45% due Oct. 24, 2021 73,511 77,290

130,000 Province of Nova Scotia9.60% due Jan. 30, 2022 179,967 194,220





AverageCost ($)

FairValue ($)




405,000 Province of Ontario6.10% due Nov. 19, 2010 409,671 412,911

693,000 Province of Ontario4.40% due Dec. 2, 2011 709,193 722,007


1,090,000 Province of Ontario4.50% due Dec. 2, 2012 1,122,907 1,154,478


4,250,000 Province of Ontario4.75% due Jun. 2, 2013 4,568,425 4,550,202

4,225,000 Province of Ontario5.00% due Mar. 8, 2014 4,574,497 4,588,683



928,000 Province of Ontario4.30% due Mar. 8, 2017 923,701 977,484




200,000 Province of Ontario9.50% due Jul. 13, 2022 268,132 300,858

700,000 Province of Ontario8.10% due Sep. 8, 2023 938,210 974,463


110,000 Province of Ontario6.25% due Aug. 25, 2028 110,879 132,745


90,000 Province of Ontario6.20% due Jun. 2, 2031 89,415 109,965





50,000 Province of Prince Edward Island6.80% due Feb. 21, 2030 49,690 63,914

20,000 Province of Prince Edward Island5.70% due Jun. 15, 2035 19,982 22,832

20,000 Province of Prince Edward Island5.30% due May 19, 2036 19,872 21,757

20,000 Province of Prince Edward Island4.65% due Nov. 19, 2037 19,991 19,795

200,000 Province of Quebec6.00% due Oct. 1, 2012 204,120 217,937

1,200,000 Province of Quebec5.25% due Oct. 1, 2013 1,314,138 1,307,744




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AverageCost ($)

FairValue ($)


630,000 Province of Quebec4.50% due Dec. 1, 2016 618,245 671,329





500,000 Province of Quebec9.38% due Jan. 16, 2023 712,250 744,765

750,000 Province of Quebec8.50% due Apr. 1, 2026 1,031,813 1,079,929

450,000 Province of Quebec6.00% due Oct. 1, 2029 519,056 528,858

1,364,000 Province of Quebec6.25% due Jun. 1, 2032 1,487,069 1,656,857




85,000 Province of Saskatchewan6.15% due Sep. 1, 2010 94,452 85,724

100,000 Province of Saskatchewan10.25% due Apr. 10, 2014 131,100 127,334

40,000 Province of Saskatchewan5.25% due Jun. 3, 2014 39,699 44,013

30,000 Province of Saskatchewan4.25% due Dec. 3, 2015 29,797 31,861

60,000 Province of Saskatchewan4.50% due Aug. 23, 2016 59,590 64,291



300,000 Province of Saskatchewan5.00% due Mar. 5, 2037 314,912 322,796

142,000 Province of Saskatchewan4.75% due Jun. 1, 2040 145,940 148,153

74,522,784 77,051,395

Municipal Bonds – 1.1%135,000 55 School Board Trust, The

5.90% due Jun. 2, 2033 134,906 151,22160,000 City of Edmonton

11.50% due Dec. 13, 2010 80,700 62,73450,000 City of Edmonton

9.63% due Feb. 13, 2012 62,964 56,161115,000 City of Montreal

6.00% due Jun. 1, 2043 121,597 131,75420,000 City of Toronto

6.25% due Aug. 3, 2010 19,854 20,089130,000 City of Toronto

5.30% due May 21, 2014 129,753 141,98430,000 City of Toronto

4.55% due May 20, 2015 29,826 31,95255,000 City of Toronto

4.85% due Jul. 28, 2016 54,767 59,15537,000 City of Toronto

5.05% due Jul. 18, 2017 36,899 39,98250,000 City of Toronto

4.95% due Jun. 27, 2018 49,848 53,324100,000 City of Toronto

4.50% due Dec. 2, 2019 99,691 102,127


AverageCost ($)

FairValue ($)

BOND AND DEBENTURE INSTRUMENTS (cont’d)Municipal Bonds (cont’d)

16,644 City of Toronto5.34% due Jul. 18, 2027 16,644 17,521

100,000 City of Toronto5.20% due Jun. 1, 2040 99,283 104,034

25,000 City of Vancouver4.70% due Dec. 1, 2017 24,852 26,407

300,000 City of Vancouver4.50% due Jun. 1, 2020 298,854 308,321

44,000 Durham District School Board6.75% due Nov. 19, 2019 51,401 52,068

20,000 Municipal Finance Authority of British Columbia4.00% due Dec. 1, 2010 19,950 20,253



25,000 Municipal Finance Authority of British Columbia4.15% due Oct. 13, 2015 24,968 26,225

162,000 Municipal Finance Authority of British Columbia4.65% due Apr. 19, 2016 164,721 173,902

1,085,000 Municipal Finance Authority of British Columbia4.80% due Dec. 1, 2017 1,147,784 1,163,074

73,000 Municipal Finance Authority of British Columbia4.45% due Jun. 1, 2020 72,856 75,071

100,000 Municipality of Metropolitan Toronto8.65% due Jun. 8, 2015 124,070 124,858

93,000 Peel Region Municipal of Ontario5.10% due Jun. 29, 2040 92,307 94,650

30,000 Regional Municipality of York4.50% due Sep. 28, 2016 29,921 31,622

31,685 Toronto Hospital5.64% due Dec. 8, 2022 30,988 34,020

25,000 Ville de Montreal4.60% due Jun. 1, 2017 24,950 26,114

108,000 Ville de Montreal5.00% due Dec. 1, 2017 108,530 114,945



62,000 York Region Municipality4.50% due Jun. 30, 2020 61,817 63,191

3,378,613 3,483,763

Corporate Bonds – 26.4%110,000 407 International Inc.

4.90% due Oct. 4, 2010 109,945 111,07190,000 407 International Inc.

3.88% due Jun. 15, 2015 89,984 92,20990,000 407 International Inc.

4.99% due Jun. 16, 2020 89,944 93,478100,000 407 International Inc.

6.47% due Jul. 27, 2029 112,757 116,527555,000 407 International Inc.

5.96% due Dec. 3, 2035 592,562 618,95079,000 407 International Inc.

5.75% due Feb. 14, 2036 78,899 79,983118,916 Aeroports de Montreal

6.95% due Apr. 16, 2032 135,017 137,18250,000 Aeroports de Montreal

5.17% due Sep. 17, 2035 49,939 49,01455,000 Aeroports de Montreal

5.67% due Oct. 16, 2037 54,945 57,82220,000 AGT Limited

8.80% due Sep. 22, 2025 23,974 26,05065,000 Algonquin Credit Card Trust

3.99% due Oct. 15, 2010 65,000 65,440


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AverageCost ($)

FairValue ($)


119,976 Alliance Pipeline LP7.23% due Jun. 30, 2015 123,616 131,300

37,861 Alliance Pipeline LP7.18% due Jun. 30, 2023 39,751 44,411

32,251 Alliance Pipeline LP5.55% due Dec. 31, 2023 32,251 34,377



100,000 AltaGas Income Trust7.42% due Apr. 29, 2014 99,984 111,555

30,000 AltaLink LP5.43% due Jun. 5, 2013 32,363 32,453

325,000 AltaLink LP5.24% due May 29, 2018 333,366 353,059

165,000 AltaLink LP5.38% due Mar. 26, 2040 165,000 170,333

32,000 AltaLink LP*5.02% due Nov. 21, 2012 32,000 33,367

82,000 American Express Canada Credit Corporation4.30% due Nov. 12, 2010 81,851 82,780

65,000 American Express Canada Credit Corporation4.70% due May 20, 2011 64,995 66,474

105,000 American Express Canada Credit Corporation5.90% due Apr. 2, 2013 104,877 112,646

650,000 American Express Canada Credit Corporation4.85% due Oct. 3, 2014 656,825 680,027

55,000 Asian Development Bank4.75% due Jun. 15, 2017 54,909 59,359

101,000 Asian Development Bank4.65% due Feb. 16, 2027 101,062 102,094

120,000 Bank of Montreal4.69% due Jan. 31, 2011 119,418 122,390

185,000 Bank of Montreal (callable)5.20% due Jun. 21, 2017-(2012) 184,993 194,627

250,000 Bank of Montreal5.04% due Sep. 4, 2012 251,925 264,950

150,000 Bank of Montreal4.65% due Mar. 14, 2013 149,925 158,570

100,000 Bank of Montreal4.78% due Apr. 30, 2014 99,981 106,693

90,000 Bank of Montreal (callable)4.87% due Apr. 22, 2020-(2015) 89,986 94,666



1,868,000 Bank of Montreal5.45% due Jul. 17, 2017 1,972,226 2,051,929

95,000 Bank of Montreal4.55% due Aug. 1, 2017 94,991 99,389

115,000 Bank of Montreal (callable)6.17% due Mar. 28, 2020-(2018) 114,966 128,156

500,000 Bank of Montreal Capital Trust6.69% due Dec. 31, 2011 526,980 530,952

635,000 Bank of Montreal Capital Trust (callable)5.47% due Dec. 31, 2049-(2014) 650,080 679,760

70,000 Bank of Montreal Capital Trust (callable)4.63% due Dec. 31, 2049-(2015) 70,000 71,841

50,000 bcIMC Realty Corporation4.10% due Feb. 10, 2011 49,969 50,785

50,000 bcIMC Realty Corporation4.65% due Feb. 10, 2015 49,965 52,793

130,000 Bell Aliant Regional Communications, Limited Partnership4.72% due Sep. 26, 2011 129,994 134,112


AverageCost ($)

FairValue ($)


75,000 Bell Aliant Regional Communications, Limited Partnership4.95% due Feb. 26, 2014 74,978 78,907


85,000 Bell Aliant Regional Communications, Limited Partnership5.41% due Sep. 26, 2016 84,961 90,022


240,000 Bell Canada4.85% due Jun. 30, 2014 239,621 253,368

500,000 Bell Canada6.55% due May 1, 2029 503,650 517,251

500,000 Bell Canada6.10% due Mar. 16, 2035 458,630 498,897

250,000 BMO Subordinated Notes Trust5.75% due Sep. 26, 2022 249,963 271,883

65,000 Borealis Infrastructure Trust6.27% due May 3, 2011 67,144 67,373

500,000 British Columbia Ferry Services Inc.6.21% due Dec. 19, 2013 557,830 555,911

45,000 British Columbia Ferry Services Inc.5.74% due May 27, 2014 44,976 49,577

40,000 British Columbia Ferry Services Inc.6.25% due Oct. 13, 2034 39,952 45,987

35,000 British Columbia Ferry Services Inc.5.58% due Jan. 11, 2038 35,000 36,910




70,000 Canada Life Capital Trust6.68% due Jun. 30, 2012 70,000 75,251

50,000 Canadian Credit Card Trust4.51% due Apr. 24, 2012 50,000 52,034

171,000 Canadian Credit Card Trust3.44% due Jul. 24, 2015 171,000 171,128

100,000 Canadian Imperial Bank of Commerce4.95% due Sep. 2, 2010 101,332 100,649

210,000 Canadian Imperial Bank of Commerce (callable)3.75% due Sep. 9, 2015-(2010) 209,601 210,931

250,000 Canadian Imperial Bank of Commerce4.40% due Mar. 7, 2011 249,450 255,232

240,000 Canadian Imperial Bank of Commerce (callable)4.55% due Mar. 28, 2016-(2011) 239,618 244,757

92,000 Canadian Imperial Bank of Commerce4.35% due Nov. 1, 2011 92,438 95,131

1,375,000 Canadian Imperial Bank of Commerce5.00% due Sep. 10, 2012 1,443,412 1,456,028

295,000 Canadian Imperial Bank of Commerce3.05% due Jun. 3, 2013 294,844 299,013

75,000 Canadian Imperial Bank of Commerce4.95% due Jan. 23, 2014 74,778 80,303

400,000 Canadian Imperial Bank of Commerce3.30% due Nov. 19, 2014 399,892 403,554

60,000 Canadian Imperial Bank of Commerce4.75% due Dec. 22, 2014 59,846 64,051

425,000 Canadian Imperial Bank of Commerce3.10% due Mar. 2, 2015 424,201 424,165

750,000 Canadian Imperial Bank of Commerce (callable)6.00% due Jun. 6, 2023-(2018) 774,750 833,918

300,000 Canadian Imperial Bank of Commerce (callable)4.11% due Apr. 30, 2020-(2015) 300,000 305,644

65,000 Canadian Natural Resources Limited5.50% due Dec. 17, 2010 64,968 66,185


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AverageCost ($)

FairValue ($)


65,000 Canadian Natural Resources Limited4.50% due Jan. 23, 2013 64,988 68,125

70,000 Canadian Natural Resources Limited4.95% due Jun. 1, 2015 69,962 74,491

250,000 Canadian Pacific Railway Company6.45% due Nov. 17, 2039 264,158 270,446

50,000 Canadian Tire Corporation, Limited5.22% due Oct. 1, 2010 49,992 50,469

50,000 Canadian Tire Corporation, Limited4.95% due Jun. 1, 2015 49,909 53,016

100,000 Canadian Tire Corporation, Limited5.65% due Jun. 1, 2016 99,960 108,800

30,000 Canadian Tire Corporation, Limited6.32% due Feb. 24, 2034 29,984 30,583

30,000 Canadian Tire Corporation, Limited5.61% due Sep. 4, 2035 30,000 27,844

80,000 Capital Desjardins Inc. (callable)6.32% due Jun. 1, 2017-(2012) 81,480 85,666

77,000 Capital Desjardins Inc. (callable)5.76% due Apr. 1,2019-(2014) 77,000 83,456

775,000 Capital Desjardins Inc. (callable)5.54% due Jun. 1, 2021-(2016) 775,000 835,944

120,000 CARDS II Trust3.87% due Oct. 15, 2010 120,000 120,939

60,000 Caterpillar Financial Services Limited4.34% due Dec. 6, 2010 59,984 60,749

92,000 Caterpillar Financial Services Limited4.94% due Jun. 1, 2012 91,992 96,838

110,000 Caterpillar Financial Services Limited5.20% due Jun. 3, 2013 109,991 117,673

98,314 CBC Monetization Trust4.69% due May 15, 2027 98,314 103,510

220,000 CDP Financial Inc.4.60% due Jul. 15, 2020 219,547 226,115

250,000 Central 1 Credit Union3.38% due Apr. 19, 2013 250,000 254,552

16,000 CHIP Mortgage Trust4.30% due Nov. 1, 2010 16,000 16,156

300,000 CIBC Capital Trust (callable)9.98% due Jun. 30, 2108-(2019) 300,000 401,341

500,000 CIBC Capital Trust10.25% due Jun. 30, 2108-(2039) 740,630 775,056

30,000 Citigroup Finance Canada Inc.5.10% due Jul. 26, 2011 29,981 30,615

395,000 Citigroup Finance Canada Inc.4.35% due Mar. 8, 2013 394,692 397,999

50,000 Citigroup Finance Canada Inc.4.75% due Mar. 17, 2014 49,969 49,932

75,000 Clarica Life Insurance Company (callable)6.65% due Oct. 12, 2015-(2010) 74,752 76,065

30,000 Concordia University6.55% due Sep. 2, 2042 29,996 35,173

75,000 Consumers’ Waterheater Operating Trust, The6.75% due Apr. 30, 2014 74,870 77,950

20,000 CU Inc.5.43% due Jan. 23, 2019 20,000 21,991

14,000 CU Inc.4.80% due Nov. 22, 2021 14,000 14,455

150,000 CU Inc.6.22% due Mar. 6, 2024 150,000 171,719

90,000 CU Inc.5.56% due May 26, 2028 90,000 94,728

31,000 CU Inc.5.18% due Nov. 21, 2035 31,000 31,187

28,000 CU Inc.5.03% due Nov. 20, 2036 28,000 27,499


AverageCost ($)

FairValue ($)


538,000 CU Inc.5.56% due Oct. 30, 2037 545,500 568,734

500,000 Duke Energy Corporation8.50% due Nov. 23, 2015 605,380 618,150

83,000 Eagle Credit Card Trust4.44% due Mar. 17, 2011 83,000 84,665

200,000 Enbridge Gas Distribution Inc.11.95% due Nov. 30, 2010 281,260 208,604

30,000 Enbridge Gas Distribution Inc.5.16% due Sep. 24, 2014 29,984 32,495

70,000 Enbridge Gas Distribution Inc.7.60% due Oct. 29, 2026 91,571 89,335

50,000 Enbridge Gas Distribution Inc.6.90% due Nov. 15, 2032 62,313 61,573

50,000 Enbridge Gas Distribution Inc.5.21% due Feb. 25, 2036 49,932 50,567

50,000 Enbridge Inc.4.67% due Mar. 25, 2013 49,985 52,664

250,000 Enbridge Inc.5.17% due May 19, 2016 249,855 268,765

70,000 Enbridge Inc.5.00% due Aug. 9, 2016 69,684 74,320

300,000 Enbridge Inc.4.77% due Sep. 2, 2019 299,859 308,989

750,000 Enbridge Inc.4.53% due Mar. 9, 2020 749,880 753,661

20,000 Enbridge Inc.7.22% due Jul. 24, 2030 19,998 24,261

24,000 Enbridge Inc.5.57% due Nov. 14, 2035 23,969 24,226

250,000 Enbridge Inc.5.75% due Sep. 2, 2039 249,753 261,232

41,000 Enbridge Pipelines Inc.4.46% due Dec. 17, 2012 40,995 43,091

130,000 Enbridge Pipelines Inc.6.35% due Nov. 17, 2023 119,675 150,920

96,000 Enbridge Pipelines Inc.6.10% due Jul. 14, 2028 82,368 103,891

26,000 Enbridge Pipelines Inc.5.08% due Dec. 19, 2036 25,980 25,756

90,000 EnCana Corporation5.80% due Jan. 18, 2018 89,764 99,063

555,000 EPCOR Power LP5.95% due Jun. 23, 2036 430,426 488,854

55,000 EPCOR Utilities Inc.6.60% due Nov. 1, 2011 52,888 58,333

40,000 EPCOR Utilities Inc.5.80% due Jan. 31, 2018 39,949 44,457

33,000 EPCOR Utilities Inc.5.65% due Nov. 16, 2035 32,830 33,983

250,000 EPCOR Utilities Inc.6.65% due Apr. 15, 2038 277,000 294,776


25,000 Finning International Inc.4.64% due Dec. 14, 2011 24,993 25,888

575,000 Finning International Inc.5.16% due Sep. 3, 2013 580,715 611,797

70,000 Fort Chicago Energy Partners LP5.60% due Jul. 28, 2014 69,982 74,200

50,000 Fortis, Inc.7.40% due Oct. 25, 2010 49,948 50,919

70,000 Fortis, Inc.6.51% due Jul. 4, 2039 69,954 79,370

530,000 FortisAlberta Inc.5.33% due Oct. 31, 2014 567,383 579,549


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FairValue ($)



18,000 FortisAlberta Inc.5.40% due Apr. 21, 2036 17,987 18,593


16,000 FortisBC Inc.5.60% due Nov. 9, 2035 16,058 16,313

29,000 Gaz Metro Inc.5.45% due Jul. 12, 2021 28,903 31,693

30,000 Gaz Metro Inc.6.30% due Oct. 31, 2033 29,824 34,622

29,000 Gaz Metro Inc.5.70% due Jul. 10, 2036 28,954 31,231

87,000 GE Capital Canada Funding Company4.40% due Feb. 7, 2011 86,911 88,432

102,000 GE Capital Canada Funding Company4.75% due May 2, 2011 102,032 104,537

150,000 GE Capital Canada Funding Company6.25% due Jul. 24, 2012 153,855 161,296

100,000 GE Capital Canada Funding Company4.38% due Sep. 28, 2012 99,889 103,777

100,000 GE Capital Canada Funding Company5.15% due Jun. 6, 2013 100,312 105,634


100,000 GE Capital Canada Funding Company4.65% due Feb. 11, 2015 99,952 103,825


596,000 GE Capital Canada Funding Company4.55% due Jan. 17, 2017 551,058 602,849

825,000 GE Capital Canada Funding Company5.53% due Aug. 17, 2017 821,505 876,469

790,000 GE Capital Canada Funding Company5.68% due Sep. 10, 2019 789,408 835,651

224,000 GE Capital Canada Funding Company5.73% due Oct. 22, 2037 222,902 225,954

350,000 Genesis Trust4.25% due Sep. 15, 2011 339,115 360,383

100,000 George Weston Limited6.45% due Oct. 24, 2011 99,956 105,556

30,000 George Weston Limited5.05% due Mar. 10, 2014 29,909 31,692

55,000 Glacier Credit Card Trust4.19% due Nov. 19, 2010 55,000 55,594

75,000 Gloucester Credit Card Trust4.45% due Mar. 15, 2011 75,000 76,304

500,000 Golden Credit Card Trust5.11% due Apr. 15, 2011 524,300 513,810

200,000 Great-West Lifeco Finance (Delaware) LP5.69% due Jun. 21, 2017 198,780 208,517


90,000 Great-West Lifeco Inc.6.67% due Mar. 21, 2033 90,314 103,213


90,000 Greater Toronto Airports Authority6.70% due Jul. 19, 2010 91,284 90,207

100,000 Greater Toronto Airports Authority6.25% due Jan. 30, 2012 99,948 106,523

100,000 Greater Toronto Airports Authority6.25% due Dec. 13, 2012 104,805 108,895



AverageCost ($)

FairValue ($)


85,000 Greater Toronto Airports Authority4.70% due Feb. 15, 2016 84,937 89,824

71,000 Greater Toronto Airports Authority5.26% due Apr. 17, 2018 70,994 76,121

500,000 Greater Toronto Airports Authority5.96% due Nov. 20, 2019 499,884 558,670

735,000 Greater Toronto Airports Authority6.45% due Dec. 3, 2027 710,634 827,237



100,000 Greater Toronto Airports Authority6.47% due Feb. 2, 2034 99,316 115,011


28,000 Halifax International Airport Authority5.50% due Jul. 19, 2041 28,000 28,024

42,000 Honda Canada Finance Inc.4.70% due Aug. 25, 2011 42,000 43,333

105,000 Honda Canada Finance Inc.5.68% due Sep. 26, 2012 105,000 112,241

100,000 Honda Canada Finance Inc.5.61% due Sep. 12, 2013 100,000 108,113

150,000 Hospital for Sick Children5.22% due Dec. 16, 2049 150,000 152,680

100,000 HSBC Bank of Canada5.31% due Oct. 12, 2010 99,989 101,140

155,000 HSBC Bank of Canada3.86% due May 21, 2015 154,958 158,614

30,000 HSBC Canada Asset Trust (callable)5.15% due Jun. 30, 2049-(2015) 30,000 30,849

125,000 HSBC Financial Corporation Limited4.35% due Oct. 6, 2011 125,097 128,196

730,000 Husky Energy Inc.5.00% due Mar. 12, 2020 735,548 747,693

40,000 Hydro One Inc.5.77% due Nov. 15, 2012 41,658 43,099

129,000 Hydro One Inc.4.64% due Mar. 3, 2016 128,705 136,837

50,000 Hydro One Inc.5.18% due Oct. 18, 2017 49,973 54,188



20,000 Hydro One Inc.6.35% due Jan. 31, 2034 20,151 23,109

100,000 Hydro One Inc.5.36% due May 20, 2036 99,610 102,597



400,000 Hydro One Inc.5.49% due Jul. 16, 2040 404,351 418,530

15,000 Hydro Ottawa Holding Inc.4.93% due Feb. 9, 2015 14,994 16,143

125,000 IGM Financial Inc.7.35% due Apr. 8, 2019 124,930 147,933

40,000 Industrial Alliance Capital Trust5.71% due Dec. 31, 2013 40,000 42,330

30,000 Industrial Alliance Capital Trust (callable)5.13% due Jun. 30, 2019-(2014) 30,076 31,285

100,000 Intact Financial Corporation5.41% due Sep. 3, 2019 99,954 104,299


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AverageCost ($)

FairValue ($)


100,000 Intact Financial Corporation*6.40% due Nov. 23, 2039 99,906 103,836

74,000 Inter-American Development Bank4.40% due Jan. 26, 2026 72,987 72,811

70,000 Investors Group Inc.6.75% due May 9, 2011 76,480 72,862

60,000 Investors Group Inc.7.45% due May 9, 2031 63,120 71,759

50,000 Investors Group Inc.7.11% due Mar. 7, 2033 50,229 57,886

45,000 John Deere Credit Inc.5.25% due Oct. 18, 2010 44,977 45,519

140,000 John Deere Credit Inc.3.90% due Jul. 29, 2013 139,840 144,866

50,000 Loblaw Companies Limited6.50% due Jan. 19, 2011 49,986 51,288

50,000 Loblaw Companies Limited5.40% due Nov. 20, 2013 49,859 53,922

34,000 Loblaw Companies Limited6.00% due Mar. 3, 2014 31,416 37,237

200,000 Loblaw Companies Limited7.10% due Jun. 1, 2016 208,800 233,141

600,000 Loblaw Companies Limited6.65% due Nov. 8, 2027 588,804 634,136

50,000 Loblaw Companies Limited6.85% due Mar. 1, 2032 53,885 54,425



120,000 Manitoba Telecom Services Inc.6.15% due Jun. 10, 2014 119,584 129,825

100,000 Manufacturers Life Insurance Company, The (callable)6.24% due Feb. 16, 2016-(2011) 100,450 102,692

25,000 Manulife Bank of Canada4.19% due Dec. 9, 2010 24,959 25,261



200,000 Manulife Financial Capital Trust6.70% due Jun. 30, 2012 198,460 214,952

925,000 Manulife Financial Capital Trust II (callable)7.41% due Dec. 31, 2108-(2019) 989,500 1,074,192

150,000 Manulife Financial Corporation6.82% due May 31, 2011 149,520 156,645

65,000 Manulife Financial Corporation4.67% due Mar. 28, 2013 64,984 68,004

500,000 Manulife Financial Corporation4.90% due Jun. 2, 2014 500,000 526,935

200,000 Manulife Financial Corporation7.77% due Apr. 8, 2019 200,000 241,852

175,000 Master Credit Card Trust4.44% due Nov. 21, 2011 175,000 181,205

1,000,000 Master Credit Card Trust5.30% due Aug. 21, 2012 1,000,000 1,062,425

20,000 McMaster University6.15% due Oct. 7, 2052 19,981 23,537

30,000 Merrill Lynch Canada Finance Company5.00% due Feb. 18, 2014 29,907 31,055

30,000 METRO Inc.4.98% due Oct. 15, 2015 29,979 31,994

65,000 METRO Inc.5.97% due Oct. 15, 2035 64,955 63,754

45,325 MILIT-AIR Inc.5.75% due Jun. 30, 2019 42,945 49,902


AverageCost ($)

FairValue ($)


320,000 Molson Coors Capital Finance ULC5.00% due Sep. 22, 2015 319,203 337,139

750,000 National Bank of Canada3.15% due Feb. 11, 2015 750,000 748,165

46,000 NAV Canada4.43% due Feb. 24, 2011 46,000 46,933

175,000 NAV Canada3.43% due Apr. 17, 2012 175,000 179,414

80,000 NAV Canada4.71% due Feb. 24, 2016 80,000 85,602

34,000 NAV Canada7.56% due Mar. 1, 2027 37,196 42,141

30,000 NAV Canada7.40% due Jun. 1, 2027 33,804 38,301

500,000 NBC Asset Trust (callable)7.45% due Jun. 30, 2049-(2020) 529,850 577,984

15,000 NOVA Gas Transmission Ltd.9.90% due Dec. 16, 2024 19,238 21,829

50,000 Nova Scotia Power Inc.5.75% due Oct. 1, 2013 49,921 54,544

100,000 Nova Scotia Power Inc.6.95% due Aug. 25, 2033 105,394 121,501

24,000 Nova Scotia Power Inc.5.67% due Nov. 14, 2035 23,976 24,906

100,000 Nova Scotia Power Inc.5.95% due Jul. 27, 2039 99,667 108,566

70,000 OMERS Realty Corporation5.48% due Dec. 31, 2012 69,938 75,243

125,000 Ontrea Inc.5.70% due Oct. 31, 2011 130,059 131,621

200,000 Power Corporation of Canada8.57% due Apr. 22, 2039 199,848 264,977

450,000 PSP Capital Inc.4.57% due Dec. 9, 2013 452,390 478,532

550,000 RBC Capital Trust4.87% due Dec. 31, 2015 538,637 573,108

100,000 RBC Capital Trust (callable)6.82% due Jun. 30, 2049-(2018) 100,000 113,279

320,000 RBC Capital Trust Convertible (callable)7.18% due Jun. 30, 2049-(2011) 360,605 335,810

1,350,000 RBC Capital Trust II (callable)5.81% due Dec. 31, 2049-(2013) 1,441,298 1,454,544

200,000 RBC Subordinated Notes Trust (callable)4.58% due Apr. 30, 2017-(2012) 199,964 207,889

30,000 RioCan Real Estate Investment Trust4.91% due Mar. 8, 2011 29,992 30,527

20,000 RioCan Real Estate Investment Trust4.70% due Jun. 15, 2012 19,954 20,638

24,000 RioCan Real Estate Investment Trust5.23% due Mar. 11, 2013 24,001 25,024

487,000 Rogers Communications Inc.5.80% due May 26, 2016 485,865 529,285

490,000 Rogers Communications Inc.5.38% due Nov. 4, 2019 489,662 508,425

380,000 Rogers Communications Inc.6.68% due Nov. 4, 2039 379,608 404,396

264,000 Royal Bank of Canada5.13% due Sep. 27, 2010 263,958 266,587

49,000 Royal Bank of Canada4.17% due Jan. 11, 2011 49,000 49,747

95,000 Royal Bank of Canada4.92% due Jul. 6, 2011 94,991 98,195

175,000 Royal Bank of Canada4.53% due May 7, 2012 174,993 183,270

380,000 Royal Bank of Canada5.20% due Aug. 15, 2012 381,988 404,428


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FairValue ($)


200,000 Royal Bank of Canada (callable)5.00% due Jun. 6, 2018-(2013) 199,938 211,284

250,000 Royal Bank of Canada5.06% due Jul. 17, 2013 249,958 268,237

160,000 Royal Bank of Canada (callable)5.45% due Nov. 4, 2018-(2013) 160,000 171,601


138,000 Royal Bank of Canada4.97% due Jun. 5, 2014 137,943 148,431


295,000 Royal Bank of Canada3.27% due Nov. 10, 2014 294,958 298,308

80,000 Royal Bank of Canada4.71% due Dec. 22, 2014 79,987 85,487

750,000 Royal Bank of Canada3.18% due Mar. 16, 2015 749,723 752,638



750,000 Royal Bank of Canada4.84% due Mar. 11, 2018 777,690 787,683

1,212,000 Royal Office Finance LP5.21% due Nov. 12, 2032 1,217,624 1,274,255

50,000 SCORE Trust4.95% due Feb. 20, 2014 50,000 52,155

103,000 Shaw Communications Inc.6.50% due Jun. 2, 2014 102,695 113,513

605,000 Shaw Communications Inc.5.65% due Oct. 1, 2019 615,672 626,412

110,000 Shaw Communications Inc.6.75% due Nov. 9, 2039 109,259 111,636

500,000 Shoppers Drug Mart Corporation5.19% due Jan. 20, 2014 543,570 535,472

50,000 Simon Fraser University5.61% due Jun. 10, 2043 50,000 53,646

15,000 SNC-Lavalin Group Inc.7.70% due Sep. 20, 2010 15,021 15,185

145,000 SNC-Lavalin Group Inc.*6.19% due Jul. 3, 2019 145,000 159,240

47,000 Sobeys Inc.6.64% due Jun. 7, 2040 46,976 47,966

16,000 Summit Real Estate Investment5.38% due Mar. 1, 2012 15,977 16,252

70,000 Sun Life Assurance Company of Canada (callable)6.15% due Jun. 30, 2022-(2012) 71,155 74,645

220,000 Sun Life Capital Trust6.87% due Dec. 31, 2011 221,400 234,141

500,000 Sun Life Capital Trust II5.86% due Dec. 31, 2019 508,555 526,053

700,000 Sun Life Financial Inc. (callable)7.90% due Mar. 31, 2019-(2014) 811,397 802,897

95,000 Sun Life Financial Inc. (callable)4.80% due Nov. 23, 2035-(2015) 94,985 98,822

192,000 Sun Life Financial Inc. (callable)4.95% due Jun. 1, 2036-(2016) 193,218 199,016

120,000 Sun Life Financial Inc.5.70% due Jul. 2, 2019 119,918 129,233

60,000 Sun Life Financial Inc.5.00% due Jul. 11, 2031 59,903 61,703

92,000 Sun Life Financial Inc. (callable)5.40% due May 29, 2042-(2037) 91,891 85,567

125,000 Suncor Energy, Inc.5.80% due May 22, 2018 124,905 135,990


AverageCost ($)

FairValue ($)


100,000 Suncor Energy, Inc.5.39% due Mar. 26, 2037 99,720 95,719

57,000 Talisman Energy Inc.4.44% due Jan. 27, 2011 56,995 57,929

175,000 TD Capital Trust (callable)6.63% due Jun. 30, 2108-(2021) 175,000 195,511

300,000 TD Capital Trust III (callable)7.24% due Dec. 31, 2049-(2018) 300,000 348,212

1,000,000 TD Capital Trust IV (callable)9.52% due Jun. 30, 2108-(2019) 1,274,420 1,320,768

100,000 TD Capital Trust IV (callable)10.00% due Jun. 30, 2108-(2039) 102,391 152,114

30,000 Telus Communication Inc.10.65% due Jun. 19, 2021 38,448 43,589

50,000 Telus Communication Inc.9.65% due Apr. 8, 2022 46,500 69,143

330,000 TELUS Corporation4.95% due May 15, 2014 329,987 348,527

250,000 TELUS Corporation4.95% due Mar. 15, 2017 235,000 258,456

725,000 TELUS Corporation5.05% due Dec. 4, 2019 720,788 733,657


20,000 Terasen Gas Inc.5.55% due Sep. 25, 2036 19,997 21,177

55,000 Terasen Gas Inc.6.00% due Oct. 2, 2037 54,803 61,779


550,000 Terasen Gas Inc.5.80% due May 13, 2038 579,123 598,003

198,000 Thomson Reuters Corporation5.20% due Dec. 1, 2014 196,923 214,541

63,000 Tim Hortons, Inc.4.20% due Jun. 1, 2017 62,989 63,984

50,000 Toronto Community Housing Corporation Issuer Trust4.88% due May 11, 2037 50,000 47,897

40,000 Toronto Hydro Corporation6.11% due May 7, 2013 39,975 43,792

50,000 Toronto Hydro Corporation5.54% due May 21, 2040 49,964 52,180

125,000 Toronto-Dominion Bank, The (callable)4.32% due Jan. 18, 2016-(2011) 125,000 126,798

93,000 Toronto-Dominion Bank, The (callable)4.87% due Oct. 28, 2016-(2011) 93,000 96,433

1,175,000 Toronto-Dominion Bank, The (callable)5.38% due Nov. 1, 2017-(2012) 1,226,506 1,245,916

200,000 Toronto-Dominion Bank, The5.14% due Nov. 19, 2012 200,000 213,284

2,225,000 Toronto-Dominion Bank, The4.85% due Feb. 13, 2013 2,284,000 2,363,136

140,000 Toronto-Dominion Bank, The (callable)5.69% due Jun. 3, 2018-(2013) 147,415 150,479

50,000 Toronto-Dominion Bank, The10.05% due Aug. 4, 2014 64,390 62,355

75,000 Toronto-Dominion Bank, The (callable)5.48% due Apr. 2, 2020-(2015) 75,000 81,087

255,000 Toronto-Dominion Bank, The (callable)4.97% due Oct. 30, 2104-(2015) 251,262 266,981

300,000 Toronto-Dominion Bank, The (callable)4.78% due Dec. 14, 2105-(2016) 300,000 308,700


50,000 Toronto-Dominion Bank, The9.15% due May 26, 2025 62,200 72,308


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45,000 Toyota Credit Canada Inc.5.05% due Jul. 27, 2012 44,977 47,281

20,000 Trans Quebec & Maritimes Pipelines Inc.7.05% due Sep. 22, 2010 20,000 20,242

44,000 TransAlta Corporation6.45% due May 29, 2014 43,922 47,866

500,000 TransCanada PipeLines Limited4.30% due Jan. 13, 2011 495,199 507,546

50,000 TransCanada PipeLines Limited9.50% due May 20, 2011 59,417 53,234

250,000 TransCanada PipeLines Limited5.05% due Aug. 20, 2013 249,673 268,167


70,000 TransCanada PipeLines Limited4.65% due Oct. 3, 2016 69,983 73,742


110,000 TransCanada PipeLines Limited9.45% due Mar. 20, 2018 132,946 146,496

50,000 TransCanada PipeLines Limited7.90% due Apr. 15, 2027 53,700 63,277

40,000 TransCanada PipeLines Limited6.28% due May 26, 2028 35,490 43,796

65,000 TransCanada PipeLines Limited7.34% due Jul. 18, 2028 67,506 77,215

50,000 TransCanada PipeLines Limited6.50% due Dec. 9, 2030 57,417 55,417


575,000 TransCanada PipeLines Limited8.05% due Feb. 17, 2039 746,176 783,220

100,000 Union Gas Limited7.90% due Feb. 24, 2014 111,670 116,827

30,000 Union Gas Limited4.64% due Jun. 30, 2016 29,982 31,674

100,000 Union Gas Limited5.35% due Apr. 27, 2018 99,870 108,781

25,000 Union Gas Limited4.85% due Apr. 25, 2022 24,953 25,639

25,000 Union Gas Limited8.65% due Nov. 10, 2025 29,500 34,055

50,000 Union Gas Limited5.46% due Sep. 11, 2036 50,000 51,597

20,000 University of British Columbia4.82% due Jul. 26, 2035 20,000 19,137

20,000 University of Guelph6.24% due Oct. 10, 2042 19,974 23,008

46,286 University of Ontario Institute of Technology6.35% due Oct. 15, 2034 46,286 50,622

35,000 University of Western Ontario4.80% due May 24, 2047 35,000 32,714

25,000 University of Windsor5.37% due Jun. 29, 2046 25,000 25,411

40,000 Vancouver International Airport Authority4.42% due Dec. 7, 2018 40,000 41,016

194,000 Wells Fargo Financial Corporation Canada4.45% due Feb. 28, 2011 193,636 197,579

70,000 Wells Fargo Financial Corporation Canada4.45% due Sep. 13, 2011 69,994 72,095

130,000 Wells Fargo Financial Corporation Canada5.20% due Sep. 13, 2012 129,904 137,210

546,000 Wells Fargo Financial Corporation Canada4.40% due Dec. 12, 2012 570,716 567,487

200,000 Wells Fargo Financial Corporation Canada4.33% due Dec. 6, 2013 190,504 207,601


AverageCost ($)

FairValue ($)


770,000 Wells Fargo Financial Corporation Canada3.97% due Nov. 3, 2014 769,968 786,922

160,000 Wells Fargo Financial Corporation Canada4.38% due Jun. 30, 2015 159,926 165,599

78,000 Westcoast Energy Inc.4.57% due Jul. 2, 2020 77,994 78,923

50,000 Westcoast Energy Inc.7.15% due Mar. 20, 2031 50,325 60,909

20,000 Wilfrid Laurier University5.43% due Feb. 1, 2045 20,000 20,860

20,000 Winnipeg Airports Authority Inc.5.21% due Sep. 28, 2040 20,000 19,307

100,000 York University6.48% due Mar. 7, 2042 99,971 120,606

31,000 Yukon Development Corporation5.00% due Jun. 29, 2040 30,790 31,532

77,180,578 80,812,589


MONEY MARKET INSTRUMENTS – 0.5%1,500,000 National Bank of Canada Term Deposits

0.50% due Jul. 2, 2010 1,500,000 1,500,021



NET ASSETS – 100.0% 305,920,196





Federal Bonds 46.5 48.8Provincial Bonds 25.2 24.4Municipal Bonds 1.1 0.6Corporate Bonds 26.4 25.8Money Market Instruments 0.5 –


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Less than 1 year $ 6,823,629 $ 8,289,8801-3 years 87,043,279 71,227,7343-5 years 61,081,560 70,300,4055-10 years 72,286,995 58,884,348H 10 years 76,372,138 75,293,625

Total $303,607,601 $283,995,992










June 30, 2010 December 31, 2009

AAA 50.0 49.6 51.3 51.1AA 23.8 23.6 23.6 23.5A 23.8 23.6 22.7 22.6BBB 2.4 2.4 2.4 2.4Unrated 0.0 0.0 0.0 0.0

Total 100.0 99.2 100.0 99.6



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $2,492,798 $3,985,782




$ – $305,107,622 $ – $305,107,622


Bond and Debenture Instruments $ – $283,995,992 $ – $283,995,992

During the period, there are no transfers between Level 1 and Level 2.


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Scotia Canadian Index Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $235,945,173 $237,792,214Cash 62,012 1,102,357Accrued investment income 539,693 593,299Receivable for securities sold 345,898 342,229Subscriptions receivable 184,295 280,972

237,077,071 240,111,071

LIABILITIESPayable for securities purchased – 707,379Distributions payable – 631Redemptions payable 110,209 389,493Accrued expenses 176,931 90,894

287,140 1,188,397

Net Assets $236,789,931 $238,922,674

NET ASSETS PER CLASSClass A Units $210,715,320 $209,008,545Class F Units $ 101,271 $ 130,155Class I Units $ 25,973,340 $ 29,783,974




2010 2009INVESTMENT INCOMEDividends $ 2,592,467 $ 2,419,905Interest 643,890 670,369Capital gains distributions received 9,310 8,413Securities lending 29,603 32,069Foreign withholding taxes/Tax reclaims (71) (2,094)

3,275,199 3,128,662


1,069,655 810,597Absorbed expenses (1,241) (56,978)

1,068,414 753,619


Net realized gain (loss) on investments sold 1,872,509 (26,040,262)Net realized gain (loss) on foreign exchange 437 713Transaction costs (10,305) (23,801)Change in unrealized appreciation (depreciation) of investments (10,629,036) 53,777,524


Increase (decrease) in Net Assets from operations $ (6,559,610) $ 30,089,217

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (6,060,718) $ 26,253,594Class F Units $ (884) $ 1,829Class I Units $ (498,008) $ 3,833,794



2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $209,008,545 $138,440,958Class F Units 130,155 16,542Class I Units 29,783,974 21,868,862

238,922,674 160,326,362

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (6,060,718) 26,253,594Class F Units (884) 1,829Class I Units (498,008) 3,833,794

(6,559,610) 30,089,217


Class A Units 25,775,354 23,180,274Class F Units 40,000 44,586Class I Units 2,542,033 1,327,673


Payments on redemptionClass A Units (18,007,861) (11,506,378)Class F Units (68,000) (17,047)Class I Units (5,854,659) (5,915,670)

4,426,867 7,113,423

INCREASE (DECREASE) IN NET ASSETSClass A Units 1,706,775 37,927,475Class F Units (28,884) 29,368Class I Units (3,810,634) (754,203)

(2,132,743) 37,202,640


$236,789,931 $197,529,002


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Scotia Canadian Index Fund (Unaudited – Continued)



AverageCost ($)

FairValue ($)

CANADIAN EQUITIES – 99.6%Energy – 26.3%

32,343 Advantage Oil & Gas Ltd. 444,171 199,23314,700 AltaGas Income Trust 353,442 271,21547,400 ARC Energy Trust 1,134,785 934,25440,200 Bankers Petroleum Ltd. 343,114 280,99820,756 Baytex Energy Trust 434,469 660,04122,100 Birchcliff Energy Ltd. 286,323 213,48623,900 Bonavista Energy Trust 742,339 545,15973,042 Cameco Corporation 1,030,009 1,653,671

201,864 Canadian Natural Resources Ltd. 2,819,674 7,131,85589,576 Canadian Oil Sands Trust 2,637,472 2,417,65612,930 Celtic Exploration Ltd. 132,403 140,937

139,196 Cenovus Energy Inc. 2,097,001 3,813,97040,700 Crescent Point Energy Corp. 1,197,868 1,511,19114,200 Crew Energy Inc. 200,565 213,56832,007 Daylight Energy Ltd. 323,174 284,86270,617 Enbridge Inc. 1,766,912 3,501,191

136,196 EnCana Corporation 2,347,785 4,390,95932,130 Enerplus Resources Fund 1,559,796 735,45623,300 Ensign Resource Service, Inc. 159,455 291,25026,000 Fort Chicago Energy Partners LP 282,252 271,700

7,500 Freehold Royalty Trust 155,933 118,72546,480 Husky Energy Inc. 714,439 1,173,15546,617 Imperial Oil Ltd. 1,161,525 1,807,80747,500 Inter Pipeline Fund 459,697 567,62543,100 Ivanhoe Energy, Inc. 144,201 86,63112,320 Keyera Facilities Income Fund 237,067 329,43715,700 Mullen Group Limited 348,517 224,19626,200 NAL Oil & Gas Trust 400,133 276,67298,540 Nexen Inc. 1,348,585 2,063,428

8,200 Niko Resources Ltd. 332,207 811,88217,500 NuVista Energy Ltd. 234,339 177,80048,300 Pacific Rubiales Energy Corporation 524,036 1,152,43817,837 Paramount Energy Trust 207,606 90,25511,000 Pason Systems Inc. 125,272 124,30046,700 Pearl Exploration and Production Ltd. 139,633 130,76029,600 Pembina Pipeline Income Fund 464,412 528,65655,680 Pengrowth Energy Trust 1,033,289 541,76682,904 Penn West Energy Trust 2,700,195 1,682,95111,371 PetroBakken Energy Ltd. 378,087 240,04218,500 Petrobank Energy and Resources Ltd. 488,455 692,82522,500 Peyto Energy Trust 463,327 326,70052,300 Precision Drilling Corporation 798,782 368,71538,725 Progress Energy Resources Corp. 573,353 476,70550,300 Provident Energy Trust 584,110 366,18440,100 Questerre Energy Corp. 147,969 113,88415,600 Savanna Energy Services Corp. 236,572 93,91211,300 ShawCor Ltd. 164,154 303,292

289,578 Suncor Energy, Inc. 5,168,754 9,072,479189,222 Talisman Energy Inc. 1,790,799 3,046,474128,211 TransCanada Corporation 3,461,031 4,565,59423,900 Trican Well Service Ltd. 155,657 325,51824,300 Trinidad Drilling Ltd. 296,592 122,47289,325 Uranium One, Inc. 935,344 230,45992,700 UTS Energy Corporation 253,412 190,03515,000 Vermilion Energy Trust 456,060 502,950

47,376,553 62,389,376

Materials – 20.7%29,041 Agnico-Eagle Mines Limited 937,941 1,875,46829,766 Agrium Inc. 982,736 1,547,53420,600 Alamos Gold Inc. 192,494 336,39826,500 Aurizon Mines Ltd. 150,835 138,860

182,629 Barrick Gold Corporation 5,981,406 8,824,63316,613 Canfor Corporation 141,491 141,211

4,700 CCL Industries Inc., Class B 74,953 132,77529,013 Centerra Gold Inc. 308,762 340,03235,200 Consolidated Thompson Iron Mines Limited 188,129 254,848


AverageCost ($)

FairValue ($)

CANADIAN EQUITIES (cont’d)Materials (cont’d)

12,700 Detour Gold Corporation 174,982 300,101110,800 Eastern Platinum Limited 156,794 106,368101,078 Eldorado Gold Corporation 722,338 1,928,568113,000 Equinox Minerals Limited 270,896 418,10025,600 European Goldfields Limited 146,055 173,82414,853 First Quantum Minerals Ltd. 578,574 795,37821,600 Franco-Nevada Corporation 649,092 699,84020,600 Fronteer Development Group Inc. 138,844 130,19236,141 Gabriel Resources Ltd. 160,101 173,47726,300 Gammon Gold, Inc. 262,352 152,54025,500 Gerdau Ameristeel Corporation 230,797 295,035

135,725 Goldcorp, Inc. 2,628,444 6,326,14251,200 Golden Star Resources Ltd. 196,990 238,08058,800 Great Basin Gold Limited 106,187 105,84010,500 Harry Winston Diamond Corporation 145,845 136,71026,300 HudBay Minerals, Inc. 294,300 293,77169,432 IAMGOLD Corporation 600,047 1,302,544

9,640 Inmet Mining Corporation 288,957 406,03746,298 Ivanhoe Mines Ltd. 279,551 638,44913,600 Jaguar Mining Inc. 156,327 127,568

131,341 Kinross Gold Corporation 1,674,224 2,385,1535,900 Labrador Iron Ore Royalty Income Fund 154,174 251,930

38,387 Lake Shore Gold Corp. 159,686 122,45597,106 Lundin Mining Corporation 692,376 292,289

4,800 Major Drilling Group International Inc. 178,740 104,11217,600 Methanex Corporation 230,791 368,36812,000 Minefinders Corporation Ltd. 117,277 113,28075,100 New Gold Inc. 347,197 494,90958,400 Northgate Minerals Corporation 181,911 185,12828,000 NovaGold Resources Inc. 210,555 206,64045,300 Osisko Mining Corporation 276,649 519,13819,522 Pan American Silver Corporation 293,901 522,60454,760 Potash Corporation of Saskatchewan Inc. 2,505,208 5,020,39736,613 Quadra FNX Mining Ltd. 603,571 356,24442,654 Red Back Mining Inc. 361,636 1,147,39330,399 Rubicon Minerals Corporation 151,384 110,65246,061 SEMAFO Inc. 206,349 370,79154,159 Sherritt International Corporation 494,838 309,78914,000 Silver Standard Resources Inc. 315,676 264,46064,601 Silver Wheaton Corporation 801,656 1,377,93931,900 Silvercorp Metals Inc. 213,896 223,30046,000 Sino-Forest Corporation 552,842 695,98033,510 Taseko Mines Ltd. 156,488 151,46589,395 Teck Resources Ltd., Class B 1,441,238 2,814,15526,600 Thompson Creek Metals Company, Inc. 314,367 245,51812,100 Ventana Gold Corporation 118,822 95,711

5,113 West Fraser Timber Co. Ltd. 175,041 169,13836,400 Western Coal Corporation 193,915 151,424

137,722 Yamana Gold Inc. 1,409,218 1,503,924

31,679,846 48,914,609

Industrials – 5.7%9,400 Aecon Group Inc. 179,416 97,008

275,160 Bombardier Inc., Class B 2,810,805 1,331,77447,000 CAE, Inc. 324,093 433,81087,169 Canadian National Railway Company 2,366,306 5,318,18131,608 Canadian Pacific Railway Limited 881,710 1,803,55232,600 Finning International Inc. 356,604 574,73815,700 IESI-BFC Ltd. 321,078 333,31123,600 Jazz Air Income Fund 156,744 96,76019,500 Ritchie Bros. Auctioneers Incorporated 525,633 376,35011,700 Russel Metals Inc. 134,637 210,83428,345 SNC-Lavalin Group Inc. 481,638 1,207,780

9,050 Stantec Inc. 235,976 213,30919,500 Superior Plus Corporation 357,669 249,21014,300 Toromont Industries Ltd. 190,953 328,185

6,700 Transat A.T. Inc., Class B 126,898 67,670


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AverageCost ($)

FairValue ($)

CANADIAN EQUITIES (cont’d)Industrials (cont’d)

12,600 Transcontinental Inc. 130,518 165,81615,483 TransForce, Inc. 248,797 143,37327,500 WestJet Airlines Ltd. 321,311 326,150

6,700 Westport Innovations Inc. 126,697 110,81811,204 Westshore Terminals Income Fund 136,182 193,941

10,413,665 13,582,570

Consumer Discretionary – 4.7%9,800 Astral Media Inc. 192,788 352,114

15,060 Canadian Tire Corporation, Limited 470,762 800,43911,100 Cineplex Galaxy Income Fund 181,100 216,450

5,000 Cogeco Cable Inc. 174,501 170,40013,300 Corus Entertainment Inc., Class B 259,791 248,577

5,100 Dorel Industries Inc., Class B 135,549 169,7795,000 Forzani Group Ltd., The 83,988 77,000

19,148 Gildan Activewear Inc. 303,372 584,78036,737 Groupe Aeroplan, Inc. 613,336 325,490

9,000 Linamar Corporation 165,791 162,00021,062 Magna International Inc. 1,418,761 1,477,078

8,700 Quebecor Inc., Class B 278,911 283,0119,300 Reitmans (Canada) Ltd. 177,199 174,282

23,590 RONA inc. 329,173 370,3635,500 Sears Canada Inc. 123,954 141,900

68,850 Shaw Communications, Inc., Class B 1,128,878 1,319,85567,240 Thomson Reuters Corporation 2,631,858 2,561,84431,800 Tim Hortons, Inc. 972,598 1,083,74497,100 Yellow Pages Income Fund 1,393,864 578,716

11,036,174 11,097,822

Consumer Staples – 2.6%24,200 Alimentation Couche-Tard Inc., Class B 138,974 431,00214,938 Cott Corporation 136,382 92,317

5,200 Empire Company Limited 141,072 273,6249,200 George Weston Limited 565,771 669,760

21,100 Jean Coutu Group (PJC) Inc., The 263,679 173,23119,600 Loblaw Companies Limited 811,055 756,756

7,800 Maple Leaf Foods Inc. 93,949 69,73220,100 Metro Inc. 391,129 840,381

9,000 North West Company Fund, The 156,012 172,08026,196 Saputo Inc. 482,796 794,52540,156 Shoppers Drug Mart Corporation 1,332,606 1,321,53471,000 Viterra, Inc. 673,701 502,680

5,187,126 6,097,622

Health Care – 0.5%30,700 Biovail Corporation 1,203,517 628,42915,800 CML Healthcare Income Fund 224,773 156,894

8,612 MDS Inc. 172,330 77,1645,200 SXC Health Solutions Corporation 192,408 404,040

1,793,028 1,266,527

Financials – 30.1%14,400 AGF Management Limited, Class B 299,346 206,064

103,799 Bank of Montreal 3,889,948 5,993,354192,405 Bank of Nova Scotia, The 6,100,123 9,435,541

7,200 Boardwalk Real Estate Investment Trust 138,111 288,07291,784 Brookfield Asset Management Inc. 1,168,643 2,208,32346,935 Brookfield Properties Corporation 563,391 700,74013,700 Calloway Real Estate Investment Trust 264,907 286,60412,000 Canadian Apartment Properties Real Estate Investment Trust 161,996 179,76072,160 Canadian Imperial Bank of Commerce 3,608,605 4,772,66212,300 Canadian Real Estate Investment Trust 268,503 341,44812,500 Canadian Western Bank 152,377 295,37525,200 Chartwell Seniors Housing Real Estate Investment Trust 255,028 179,92830,200 CI Financial Corporation 422,377 537,560

8,100 Cominar Real Estate Investment Trust 170,943 150,25510,500 Davis + Henderson Income Fund 189,704 173,98514,000 Dundee Corporation 226,620 169,120

6,100 Dundee Real Estate Investment Trust 156,286 149,145


AverageCost ($)

FairValue ($)

CANADIAN EQUITIES (cont’d)Financials (cont’d)

8,200 DundeeWealth Inc. 118,654 110,29014,200 Extendicare Real Estate Investment Trust 161,367 121,126

3,692 Fairfax Financial Holdings Limited 1,048,245 1,433,4939,600 First Capital Realty Inc. 132,480 130,5605,100 FirstService Corporation 104,608 112,6598,600 GMP Capital, Inc. 118,343 80,066

48,172 Great-West Lifeco Inc. 870,684 1,159,01826,900 H&R Real Estate Investment Trust 489,172 455,417

6,100 Home Capital Group Inc. 195,025 257,23720,136 IGM Financial, Inc. 492,009 747,44815,000 Industrial Alliance Insurance and Financial Services Inc. 327,623 523,50021,092 Intact Financial Corporation 739,546 947,031

4,700 Laurentian Bank of Canada 123,763 197,964328,426 Manulife Financial Corporation 7,100,028 5,074,18230,106 National Bank of Canada 947,920 1,639,27217,300 Onex Corporation 304,201 441,15063,428 Power Corporation of Canada 1,157,622 1,618,04842,591 Power Financial Corporation 729,725 1,161,88211,100 Primaris Retail Real Estate Investment Trust 145,364 193,25145,100 RioCan Real Estate Investment Trust 848,846 855,547

264,177 Royal Bank of Canada 8,090,230 13,393,774105,341 Sun Life Financial Inc. 3,173,897 2,945,33413,800 TMX Group Inc. 400,359 383,502

161,753 Toronto-Dominion Bank, The 7,445,725 11,157,722

53,302,344 71,207,409

Information Technology – 2.7%39,960 Celestica Inc. 1,818,889 343,25645,193 CGI Group Inc. 590,058 715,857

7,700 MacDonald, Dettwiler and Associates Ltd. 208,880 336,72110,800 Open Text Corporation 290,334 432,00090,024 Research In Motion Limited 3,627,813 4,710,956

6,535,974 6,538,790

Telecommunication Services – 4.6%141,344 BCE Inc. 4,537,831 4,390,14624,279 Bell Aliant Regional Communications Income Fund 797,665 617,17211,800 Manitoba Telecom Services Inc. 364,809 317,53889,572 Rogers Communications, Inc., Class B 1,844,396 3,115,31459,265 TELUS Corporation 1,963,813 2,380,675

9,508,514 10,820,845

Utilities – 1.7%7,700 ATCO Ltd., Class I 177,607 365,7509,400 Atlantic Power Corporation 127,746 115,9969,620 Brookfield Renewable Power Fund 182,448 192,208

11,300 Canadian Utilities Limited 329,205 510,3087,600 Capital Power Income L.P. 216,036 123,728

21,500 Emera Inc. 362,250 528,25532,600 Fortis, Inc. 583,515 885,74223,395 Just Energy Income Fund 392,694 296,18114,300 Northland Power Income Fund 182,600 196,33941,523 TransAlta Corporation 870,611 815,096

3,424,712 4,029,603



NET ASSETS – 100.0% 236,789,931


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Energy 26.3 27.6Materials 20.7 19.3Industrials 5.7 5.5Consumer Discretionary 4.7 4.4Consumer Staples 2.6 2.8Health Care 0.5 0.4Financials 30.1 30.3Information Technology 2.7 3.5Telecommunication Services 4.6 4.2Utilities 1.7 1.5



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009





June 30, 2010 December 31, 2009




Equities $235,945,173 $ – $ – $235,945,173


Equities $237,792,214 $ – $ – $237,792,214



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Scotia U.S. Index Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $58,752,156 $66,948,311Cash – 154,444Accrued investment income 73,283 77,724Receivable for securities sold 3,893,742 –Subscriptions receivable 28,139 26,952

62,747,320 67,207,431

LIABILITIESBank indebtedness 3,730,140 –Distributions payable 2,210 10,618Redemptions payable 31,810 89,613Accrued expenses 34,583 19,539

3,798,743 119,770

Net Assets $58,948,577 $67,087,661





2010 2009INVESTMENT INCOMEDividends $ 656,273 $ 588,214Interest 144 2,403Securities lending 40 6,140Foreign withholding taxes/Tax reclaims (95,523) (88,287)

560,934 508,470

EXPENSESManagement fees (note 5) 159,868 140,017Audit fees 10,557 5,077Independent Review Committee fees 442 494Custodian fees 2,545 1,898Filing fees 8,307 8,020Legal fees 2,607 2,840Unitholder reporting costs 10,765 13,971Unitholder administration, service fees and GST 84,852 99,216Overdraft charges 1,091 76


208,191 162,541


Net realized gain (loss) on investments sold (2,091,314) (674,705)Net realized gain (loss) on foreign exchange (21,660) (4,249)Transaction costs (788) (849)Change in unrealized appreciation (depreciation) of investments (2,156,016) (307,483)


Increase (decrease) in Net Assets from operations $(3,917,035) $(641,357)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(2,438,266) $(566,466)Class I Units $(1,478,769) $ (74,891)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.65) $ (0.15)Class I Units $ (0.59) $ (0.08)


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $40,727,272 $36,613,346Class I Units 26,360,389 8,815,537

67,087,661 45,428,883

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (2,438,266) (566,466)Class I Units (1,478,769) (74,891)

(3,917,035) (641,357)


Class A Units (8,839) (7,208)




Payments on redemptionClass A Units (7,650,855) (2,643,112)Class I Units (1,096,620) (828,080)

(4,213,210) 2,539,433

INCREASE (DECREASE) IN NET ASSETSClass A Units (6,753,035) 429,406Class I Units (1,386,049) 1,461,462

(8,139,084) 1,890,868


$58,948,577 $47,319,751


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Scotia U.S. Index Fund (Unaudited – Continued)



AverageCost ($)

FairValue ($)


2,810 Anadarko Petroleum Corporation 123,264 107,7381,921 Apache Corporation 93,377 172,0062,662 Baker Hughes Incorporated 128,396 117,635

500 Cabot Oil & Gas Corporation 33,275 16,6551,500 Cameron International Corporation 64,610 51,8483,600 Chesapeake Energy Corporation 115,121 80,098

11,831 Chevron Corporation 812,585 853,3678,761 ConocoPhillips 432,046 456,8491,507 CONSOL Energy Inc. 79,751 54,0132,100 Denbury Resources Inc. 37,577 32,6752,578 Devon Energy Corporation 145,881 166,922

500 Diamond Offshore Drilling, Inc. 44,072 33,0394,892 El Paso Corporation 172,974 57,7521,420 EOG Resources, Inc. 78,132 148,562

30,167 Exxon Mobil Corporation 1,954,702 1,827,506700 FMC Technologies, Inc. 32,752 39,204

5,184 Halliburton Company 147,185 135,355600 Helemerich & Payne Inc. 25,560 23,304

1,768 Hess Corporation 91,227 94,6573,990 Marathon Oil Corporation 110,784 131,890

700 Massey Energy Company 50,409 20,3471,300 Murphy Oil Corporation 83,958 68,5082,000 Nabors Industries Ltd. 64,828 37,4792,500 National-Oilwell Varco Inc. 107,437 87,8491,069 Noble Energy, Inc. 75,642 68,5124,768 Occidental Petroleum Corporation 197,919 391,2271,800 Peabody Energy Corporation 77,413 74,776

800 Pioneer Natural Resources Company 41,104 50,565900 Range Resources Corporation 47,688 38,431516 Rowan Companies, Inc. 17,263 12,040

6,946 Schlumberger Limited 383,416 408,5231,686 Smith International, Inc. 64,314 67,5121,900 Southwestern Energy Company 87,128 78,0613,985 Spectra Energy Corporation 117,438 85,019

592 Sunoco, Inc. 26,274 21,873600 Tesoro Corporation 30,237 7,447

3,800 Valero Energy Corporation 121,311 72,6253,145 Williams Companies Inc., The 116,062 61,111

6,433,112 6,252,980

Materials – 3.3%1,206 Air Products and Chemicals, Inc. 80,141 83,128

572 Airgas, Inc. 31,262 37,809500 AK Steel Holding Corporation 35,180 6,333

6,596 Alcoa Inc. 205,450 70,572559 Allegheny Technologies, Inc. 49,136 26,248408 Ball Corporation 12,599 22,924694 Bemis Company, Inc. 18,078 19,929370 CF Industries Holdings, Inc. 51,076 24,945800 Cliffs Natural Resources Inc. 37,513 40,126

6,636 Dow Chemical Company, The 247,910 167,4095,227 E.I. du Pont de Nemours and Company 303,830 192,291

341 Eastman Chemical Company 22,179 19,3521,550 Ecolab Inc. 64,867 74,034

500 FMC Corporation 27,690 30,5182,863 Freeport-McMoRan Copper & Gold Inc., Class B 160,233 180,017

458 International Flavors & Fragrances Inc. 21,528 20,6632,499 International Paper Company 118,083 60,146

971 MeadWestvaco Corporation 32,068 22,9263,122 Monsanto Company 151,020 153,4022,869 Newmont Mining Corporation 116,756 188,3271,868 Nucor Corporation 89,675 76,011

900 Owens-Illinois, Inc. 29,870 25,289850 Pactiv Corporation 20,695 25,177

1,110 PPG Industries, Inc. 81,991 71,2691,780 Praxair, Inc. 86,906 143,820

790 Sealed Air Corporation 30,622 16,552700 Sigma-Aldrich Corporation 33,234 37,098


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Materials (cont’d)

300 Titanium Metals Corporation 10,319 5,612821 United States Steel Corporation 50,122 33,617863 Vulcan Materials Company 56,705 40,229

1,464 Weyerhaeuser Company 96,362 54,808

2,373,100 1,970,581

Industrials – 10.4%4,112 3M Company 291,916 345,272

551 Avery Dennison Corporation 36,766 18,8114,398 Boeing Company, The 292,040 293,4181,100 C.H. Robinson Worldwide, Inc. 66,499 65,1173,628 Caterpillar Inc. 154,483 231,744

820 Cintas Corporation 33,155 20,8962,186 CSX Corporation 79,349 115,3161,272 Cummins Inc. 46,012 88,0963,152 Danaher Corporation 81,345 124,3702,659 Deere & Company 89,350 157,3201,145 Dover Corporation 56,941 50,878

303 Dun & Bradstreet Corporation, The 29,509 21,6271,112 Eaton Corporation 70,537 77,3944,328 Emerson Electric Co. 180,819 200,876

767 Equifax Inc. 34,552 22,8731,180 Expeditors International of Washington, Inc. 54,497 43,297

700 Fastenal Company 35,959 37,3661,897 FedEx Corp. 127,951 141,390

300 First Solar, Inc. 47,390 36,319300 Flowserve Corporation 24,503 27,057

1,204 Fluor Corporation 50,039 54,3962,196 General Dynamics Corporation 112,893 136,770

62,956 General Electric Company 2,533,292 963,506691 Goodrich Corporation 36,228 48,688

4,679 Honeywell International Inc. 287,318 193,9782,293 Illinois Tool Works Inc. 106,328 100,6701,000 Iron Mountain Incorporated 28,817 23,8871,247 ITT Corporation 64,094 59,509

725 Jacobs Engineering Group Inc. 52,397 28,098800 L-3 Communications Holdings, Inc. 75,505 60,273

1,777 Lockheed Martin Corporation 120,943 140,6861,916 Masco Corporation 70,350 21,9062,305 Norfolk Southern Corporation 90,664 130,0261,698 Northrop Grumman Corporation 101,819 98,3132,284 PACCAR Inc. 55,509 96,801

602 Pall Corporation 19,690 21,9931,075 Parker-Hannifin Corporation 45,007 63,4081,090 Pitney Bowes Inc. 75,641 25,457

882 Precision Castparts Corp. 106,007 96,5441,500 Quanta Services, Inc. 38,524 32,9431,518 R. R. Donnelley & Sons Company 51,956 26,3962,149 Raytheon Company 123,712 110,5981,721 Republic Services, Inc. 56,085 54,3981,086 Robert Half International, Inc. 43,697 27,201

853 Rockwell Automation, Inc. 56,528 44,535953 Rockwell Collins, Inc. 39,115 53,800589 Roper Industries, Inc. 33,188 35,036367 Ryder System, Inc. 19,905 15,687469 Snap-on Incorporated 21,163 20,406

4,214 Southwest Airlines Company 68,401 49,748500 Stericycle, Inc. 37,566 34,852

1,928 Textron Inc. 75,459 34,7362,956 Union Pacific Corporation 140,845 218,3715,757 United Parcel Service, Inc., Class B 495,460 348,1455,456 United Technologies Corporation 286,173 376,306

405 W.W. Grainger, Inc. 36,742 42,8372,904 Waste Management, Inc. 123,193 96,548

7,613,826 6,106,889


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EQUITIES (cont’d)Consumer Discretionary – 10.2%

400 Abercrombie & Fitch Co. 35,290 13,0521,944 Amazon.com, Inc. 137,660 225,899

835 Apollo Group, Inc. 52,443 37,716600 AutoNation, Inc. 12,105 12,431197 AutoZone, Inc. 15,368 40,483

1,768 Bed Bath & Beyond Inc. 52,913 69,7052,027 Best Buy Co., Inc. 86,975 72,909

473 Big Lots, Inc. 15,426 16,143800 CarMax Inc. 17,738 16,923

2,566 Carnival Corporation 124,367 82,5274,059 CBS Corporation, Class B 172,975 55,8181,900 Coach, Inc. 55,531 73,818

16,385 Comcast Corporation 408,789 302,6931,500 D.R. Horton, Inc. 68,946 15,682

834 Darden Restaurants, Inc. 18,713 34,460400 DeVry, Inc. 20,469 22,313

5,242 DIRECTV 155,959 189,0521,872 Discovery Communications, Inc 63,083 71,0971,710 Eastman Kodak Company 162,571 7,8931,500 Expedia, Inc. 45,136 29,960

845 Family Dollar Stores, Inc. 35,651 33,87220,900 Ford Motor Company 402,657 223,615

1,075 Fortune Brands, Inc. 51,844 44,7951,200 GameStop Corporation 54,633 23,9551,244 Gannett Co., Inc. 116,661 17,7952,357 GAP Inc., The 103,996 48,7321,082 Genuine Parts Company 42,936 45,3971,433 Goodyear Tire & Rubber Company, The 60,603 15,1342,396 H&R Block, Inc. 43,029 39,9311,306 Harley-Davidson, Inc. 60,786 30,877

300 Harman International Industries, Incorporated 37,749 9,537903 Hasbro, Inc. 30,354 39,472

9,737 Home Depot Inc., The 454,545 290,2722,040 International Game Technology 45,835 34,0633,129 Interpublic Group of Companies, Inc., The 162,352 23,7271,659 J.C. Penney Company, Inc. 69,265 37,9004,186 Johnson Controls, Inc. 77,004 119,5361,701 Kohl’s Corporation 107,033 85,932

677 Leggett & Platt, Incorporated 21,092 14,422700 Lennar Corporation 50,332 10,356

1,814 Limited Brands, Inc. 42,591 42,5408,698 Lowe’s Companies, Inc. 187,092 188,8072,894 Macy’s, Inc. 72,466 55,0331,651 Marriott International Inc. 41,086 52,5601,856 Mattel, Inc. 44,554 41,7696,341 McDonald’s Corporation 349,008 444,0891,796 McGraw-Hill Companies, Inc., The 64,550 53,675

376 Meredith Corporation 17,698 12,449548 New York Times Company, The 27,792 5,041

1,556 Newell Rubbermaid Inc. 63,287 24,21112,889 News Corporation 243,523 163,948

2,240 NIKE, Inc., Class B 107,604 160,784956 Nordstrom, Inc. 17,536 32,729745 O’Reilly Automotive, Inc. 31,627 37,668

1,173 Office Depot, Inc. 29,591 5,0281,662 Omnicom Group Inc. 78,333 60,612

300 Polo Ralph Lauren Corporation 29,509 23,273283 priceline.com Incorporated 53,705 53,136

1,410 Pulte Group Inc. 20,638 12,402778 RadioShack Corporation 30,854 16,143700 Ross Stores, Inc 32,016 39,673635 Scripps Networks Interactive Inc. 26,421 27,244296 Sears Holdings Corporation 41,609 20,352660 Sherwin-Williams Company, The 38,891 48,567916 Stanley Black & Decker Inc. 51,565 49,159

4,031 Staples, Inc. 91,913 81,6704,560 Starbucks Corporation 76,694 117,8501,300 Starwood Hotels & Resorts Worldwide, Inc. 64,776 57,2824,239 Target Corporation 191,458 221,496


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Consumer Discretionary (cont’d)

896 Tiffany & Co. 40,180 36,0781,973 Time Warner Cable Inc. 269,760 109,2426,569 Time Warner Inc. 693,533 201,9082,468 TJX Companies Inc., The 57,938 110,059

800 Urban Outfitters, Inc. 26,400 29,243598 VF Corporation 35,162 45,271

3,654 Viacom Inc., Class B 216,692 121,87111,394 Walt Disney Company, The 427,302 381,355

25 Washington Post Company, The, Class B 19,866 10,888517 Whirlpool Corporation 42,282 48,288996 Wyndham Worldwide Corporation 58,195 21,302400 Wynn Resorts Limited 19,099 32,408

2,836 Yum! Brands, Inc. 59,465 117,753

7,885,075 5,994,750

Consumer Staples – 11.4%12,052 Altria Group, Inc. 151,962 256,614

4,010 Archer-Daniels-Midland Company 92,130 110,0322,514 Avon Products, Inc. 74,783 70,855

587 Brown-Forman Corporation, Class B 28,911 35,6851,153 Campbell Soup Company 54,396 43,888

770 Clorox Company, The 49,400 50,90513,614 Coca-Cola Company, The 961,504 725,260

1,768 Coca-Cola Enterprises Inc. 52,153 48,6262,835 Colgate-Palmolive Company 209,454 237,3232,537 ConAgra Foods, Inc. 79,630 62,895

900 Constellation Brands, Inc. 32,969 14,9512,519 Costco Wholesale Corporation 154,693 146,8677,880 CVS Caremark Corporation 247,204 245,4721,400 Dean Foods Company 45,871 14,9791,288 Dr. Pepper Snapple Group, Inc. 36,662 51,164

800 Estee Lauder Companies Inc., The 36,351 47,3923,762 General Mills, Inc. 118,537 141,9181,858 H.J. Heinz Company 103,052 85,327

860 Hershey Company, The 33,734 43,821300 Hormel Foods Corporation 11,925 12,916800 J.M. Smucker Company, The 41,688 51,203

1,415 Kellogg Company 68,043 75,6222,521 Kimberly-Clark Corporation 188,156 162,481

10,133 Kraft Foods Inc. 341,375 301,5383,592 Kroger Co., The 111,133 75,106

900 Lorillard, Inc. 68,989 68,899800 McCormick & Company, Inc. 29,829 32,289

1,315 Mead Johnson Nutrition Company 59,784 70,0681,114 Molson Coors Brewing Company, Class B 52,249 50,1889,507 PepsiCo, Inc. 548,650 615,870

10,824 Philip Morris International Inc. 329,097 527,58717,005 Procter & Gamble Company, The 1,036,106 1,083,328

1,000 Reynolds American Inc. 55,988 55,4002,574 Safeway Inc. 147,796 53,7393,729 Sara Lee Corporation 83,215 55,8411,230 SUPERVALU Inc. 39,556 14,1673,582 Sysco Corporation 99,980 108,8412,097 Tyson Foods, Inc. 44,049 36,509

12,233 Wal-Mart Stores, Inc. 774,782 625,1485,586 Walgreen Company 221,686 158,5651,000 Whole Foods Markets, Inc. 66,590 38,288

6,984,062 6,707,567

Health Care – 12.1%8,990 Abbott Laboratories 525,361 446,9902,652 Aetna Inc. 47,455 74,3491,716 Allergan, Inc. 86,929 106,2181,812 AmerisourceBergen Corporation 44,392 61,1875,550 Amgen Inc. 355,768 310,4813,413 Baxter International Inc. 196,492 147,4101,373 Becton, Dickinson and Company 72,867 98,6401,611 Biogen Idec Inc. 115,997 81,265

10,197 Boston Scientific Corporation 181,984 62,9019,929 Bristol-Myers Squibb Company 672,300 263,260


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594 C. R. Bard, Inc. 28,755 48,9791,950 Cardinal Health, Inc. 112,170 69,642

875 CareFusion Corporation 19,015 21,1252,600 Celgene Corporation 154,350 140,390

500 Cephalon, Inc. 39,711 30,178400 Cerner Corporation 35,603 32,285

1,827 CIGNA Corporation 67,578 60,314900 Coventry Health Care, Inc. 56,489 16,923600 DaVita, Inc. 34,923 39,845

1,100 DENTSPLY International Inc. 40,073 34,9925,807 Eli Lilly and Company 453,690 206,8973,346 Express Scripts, Inc. 76,045 167,3272,080 Forest Laboratories, Inc. 95,629 60,6361,643 Genzyme Corporation 134,528 88,6815,400 Gilead Sciences, Inc. 194,384 196,818

949 Hospira, Inc. 36,674 57,9341,184 Humana Inc. 48,370 57,484

233 Intuitive Surgical, Inc. 65,500 78,16316,278 Johnson & Johnson 1,059,236 1,022,124

996 King Pharmaceuticals, Inc. 42,743 8,040700 Laboratory Corporation of America Holdings 43,904 56,097

1,186 Life Technologies Corporation 41,293 59,6001,603 McKesson Corporation 95,548 114,4822,815 Medco Health Solutions, Inc. 83,736 164,8436,381 Medtronic, Inc. 342,236 246,146

18,286 Merck & Co., Inc. 1,075,304 679,514305 Millipore Corporation 21,267 34,579

1,800 Mylan Inc. 44,583 32,621700 Patterson Companies Inc. 25,368 21,233929 PerkinElmer, Inc. 24,963 20,423

47,477 Pfizer Inc. 1,615,859 719,5401,000 Quest Diagnostics Incorporated 50,397 52,9332,076 St. Jude Medical, Inc. 59,364 79,6621,760 Stryker Corporation 82,940 93,7043,395 Tenet Healthcare Corporation 56,578 15,6712,301 Thermo Fisher Scientific, Inc. 103,099 119,9636,997 UnitedHealth Group Incorporated 183,232 211,194

600 Varian Medical Systems, Inc. 32,082 33,361608 Waters Corporation 36,460 41,837614 Watson Pharmaceuticals, Inc. 26,975 26,480

2,424 WellPoint Inc. 117,821 126,1431,268 Zimmer Holdings, Inc. 58,019 72,891

9,316,039 7,114,395

Financials – 16.4%2,929 Aflac, Inc. 115,554 132,8913,327 Allstate Corporation, The 140,068 101,6597,014 American Express Company 365,380 295,8521,009 American International Group, Inc. 1,087,025 36,9371,622 Ameriprise Financial, Inc. 61,857 62,3101,608 Aon Corporation 79,355 63,482

882 Apartment Investment & Management Company 26,045 18,151600 Assurant, Inc. 35,396 22,143520 AvalonBay Communities, Inc. 68,729 51,632

59,067 Bank of America Corporation 1,789,451 902,1036,995 Bank of New York Mellon Corporation, The 309,196 183,4583,899 BB&T Corporation 150,837 109,102

936 Boston Properties, Inc. 88,814 70,9689,700 Berkshire Hathaway Inc., Class B 782,336 821,2892,743 Capital One Financial Corporation 156,713 117,4221,800 CB Richard Ellis Group, Inc. 40,536 26,0366,318 Charles Schwab Corporation, The 193,647 95,2151,947 Chubb Corporation, The 96,121 103,557

773 Cincinnati Financial Corporation 33,644 21,268132,542 Citigroup Inc. 1,640,600 528,617

325 CME Group Inc. 152,376 97,3191,110 Comerica Incorporated 66,920 43,4323,700 Discover Financial Services 92,775 55,0131,427 E*Trade Financial Corporation 63,217 17,924


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Financials (cont’d)

1,625 Equity Residential Real Estate Investment Trust 65,926 71,965300 Federated Investors, Inc., Class B 11,783 6,601

4,629 Fifth Third Bancorp 178,070 60,5061,728 First Horizon National Corporation 55,202 21,046

949 Franklin Resources, Inc. 82,352 86,9923,149 Genworth Financial Inc. 96,246 43,7393,058 Goldman Sachs Group, Inc., The 430,839 426,4132,678 Hartford Financial Services Group, Inc., The 126,374 62,9161,600 HCP, Inc. Real Estate Investment Trust 52,923 54,862

881 Health Care Real Estate Investment Trust Inc. 39,620 39,4384,352 Host Hotels & Resorts Inc. 99,577 62,3932,777 Hudson City Bancorp, Inc. 42,982 36,1505,400 Huntington Bancshares Incorporated 62,411 31,817

500 IntercontinentalExchange Inc. 64,875 60,1012,917 Invesco Limited 71,254 52,182

934 Janus Capital Group Inc. 38,739 8,82123,475 JPMorgan Chase & Co. 1,210,046 913,534

6,201 KeyCorp 107,632 50,5842,700 Kimco Realty Corporation 64,054 38,5371,200 Legg Mason, Inc. 104,160 35,7731,100 Leucadia National Corporation 42,704 22,8012,098 Lincoln National Corporation 103,664 54,1102,070 Loews Corporation 64,572 73,245

451 M&T Bank Corporation 43,724 40,7043,000 Marsh & McLennan Companies, Inc. 153,034 71,9493,867 Marshall & Ilsley Corporation 84,224 29,4884,703 MetLife, Inc. 225,464 188,7701,012 Moody’s Corporation 12,473 21,4408,004 Morgan Stanley 381,690 197,3231,100 NASDAQ OMX Group, Inc., The 34,354 20,8011,458 Northern Trust Corporation 106,287 72,4151,800 NYSE Euronext 129,476 52,8751,900 People’s United Financial Inc. 41,754 27,2801,170 Plum Creek Timber Company, Inc. 51,019 42,9183,062 PNC Financial Services Group, Inc., The 292,569 183,9642,200 Principal Financial Group, Inc. 73,449 54,7753,895 Progressive Corporation, The 56,604 77,5482,800 ProLogis 77,773 30,1662,887 Prudential Financial, Inc. 143,603 164,730

700 Public Storage Real Estate Investment Trust 58,981 65,3667,988 Regions Financial Corporation 161,161 55,8161,667 Simon Property Group, Inc. 107,667 143,1473,304 SLM Corporation 72,971 36,5102,837 State Street Corporation 179,618 102,0452,919 SunTrust Banks, Inc. 157,579 72,2111,556 T. Rowe Price Group Inc. 51,840 73,460

408 Torchmark Corporation 17,209 21,4842,835 Travelers Companies, Inc., The 162,435 148,436

11,113 U.S. Bancorp 334,102 264,1592,311 Unum Group 93,765 53,3111,100 Ventas, Inc. 36,248 54,927

967 Vornado Realty Trust Real Estate Investment Trust 83,033 74,95330,709 Wells Fargo & Company 1,366,304 834,801

2,464 XL Capital Ltd. 155,900 41,9031,122 Zions Bancorporation 54,139 25,728

15,853,046 9,637,709

Information Technology – 18.6%3,364 Adobe Systems Incorporated 90,893 94,5614,000 Advanced Micro Devices, Inc. 94,975 31,1411,885 Agilent Technologies, Inc. 139,441 56,9561,000 Akamai Technologies, Inc. 38,749 43,1372,040 Altera Corporation 102,296 53,8071,200 Amphenol Corporation 50,240 50,1311,973 Analog Devices, Inc. 110,033 58,3985,338 Apple Inc. 481,661 1,427,7067,520 Applied Materials, Inc. 201,450 96,1341,348 Autodesk, Inc. 22,370 34,9243,155 Automatic Data Processing, Inc. 180,749 135,059


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EQUITIES (cont’d)Information Technology (cont’d)

1,062 BMC Software, Inc. 50,324 39,1142,548 Broadcom Corporation 369,254 89,3192,738 CA, Inc. 134,727 53,581

33,651 Cisco Systems, Inc. 1,417,259 762,3151,066 Citrix Systems, Inc. 59,007 47,8781,700 Cognizant Technology Solutions Corporation 71,370 90,4921,012 Computer Sciences Corporation 87,312 48,6491,320 Compuware Corporation 50,456 11,1898,914 Corning Incorporated 357,670 152,9209,803 Dell Inc. 354,253 125,6336,500 eBay Inc. 144,352 135,5652,300 Electronic Arts Inc. 85,622 35,200

12,596 EMC Corporation 492,737 244,8872,000 Fidelity National Information Service, Inc. 54,505 57,0491,028 Fiserv, Inc. 50,761 49,8881,100 FLIR Systems, Inc. 35,503 34,0321,432 Google Inc. 698,280 677,552

700 Harris Corporation 34,998 30,99313,712 Hewlett-Packard Company 746,967 630,58432,745 Intel Corporation 1,354,040 677,014

7,530 International Business Machines Corporation 988,529 988,0901,800 Intuit Inc. 62,421 66,5061,432 Jabil Circuit, Inc. 46,517 20,2411,391 JDS Uniphase Corporation 1,615,460 14,5423,100 Juniper Networks, Inc. 64,182 75,2371,182 KLA-Tencor Corporation 65,200 35,036

427 Lexmark International, Inc. 47,825 14,9961,208 Linear Technology Corporation 81,205 35,7163,094 LSI Corporation 129,229 15,137

528 MasterCard, Inc. 123,922 112,0351,100 McAfee Inc. 46,118 35,9041,200 MEMC Electronic Materials, Inc. 77,601 12,5841,000 Microchip Technology Incorporated 40,680 29,4925,928 Micron Technology, Inc. 178,885 53,464

45,001 Microsoft Corporation 1,802,435 1,100,7961,075 Molex Incorporated 43,634 20,820

520 Monster Worldwide, Inc. 47,902 6,44313,005 Motorola, Inc. 377,846 90,181

1,736 National Semiconductor Corporation 35,532 24,8511,908 NetApp, Inc. 86,556 75,7112,553 Novell, Inc. 30,009 15,395

729 Novellus Systems, Inc. 32,754 19,6553,773 NVIDIA Corporation 103,035 40,970

22,928 Oracle Corporation 554,630 523,0582,201 Paychex, Inc. 86,829 60,769

380 QLogic Corp. 32,096 6,7179,564 QUALCOMM Incorporated 496,854 333,8371,400 Red Hat, Inc. 36,118 43,0911,800 SAIC, Inc. 36,166 32,047

732 Salesforce.com, Inc. 46,852 66,7661,308 SanDisk Corporation 74,428 58,3854,739 Symantec Corporation 151,756 69,9572,122 Tellabs, Inc. 159,090 14,4211,236 Teradata Corporation 33,147 40,0671,472 Teradyne, Inc. 119,423 15,2646,991 Texas Instruments Incorporated 371,035 172,9441,272 Total System Services, Inc. 28,961 18,3711,000 VeriSign, Inc. 26,410 28,2372,600 Visa Inc. 246,595 195,6121,500 Western Digital Corporation 49,848 48,0993,943 Western Union Company 85,221 62,5268,916 Xerox Corporation 212,984 76,0501,474 Xilinx, Inc. 89,551 39,5996,606 Yahoo! Inc. 452,035 97,096

17,679,760 10,982,523

Telecommunication Services – 2.9%2,400 American Tower Corporation 98,778 113,434

34,789 AT&T Inc. 2,159,180 893,544


AverageCost ($)

FairValue ($)

EQUITIES (cont’d)Telecommunication Services (cont’d)

1,663 CenturyLink Inc. 69,700 58,8791,119 Frontier Communications Corporation 26,137 8,4381,220 MetroPCS Communications, Inc. 20,100 10,6278,769 Qwest Communications International Inc. 299,501 48,870

16,408 Sprint Nextel Corporation 679,026 73,81616,574 Verizon Communications Inc. 935,475 493,739

3,171 Windstream Corporation 38,498 35,614

4,326,395 1,736,961

Utilities – 3.8%4,614 AES Corporation, The 193,291 45,294

990 Allegheny Energy, Inc. 55,115 21,7431,609 Ameren Corporation 74,736 40,6762,710 American Electric Power Company, Inc. 114,507 93,0952,855 CentrePoint Energy, Inc. 68,944 39,8991,163 CMS Energy Corporation 56,129 18,1211,494 Consolidated Edison, Inc. 71,630 68,4201,363 Constellation Energy Group Inc. 58,719 46,7073,686 Dominion Resources, Inc. 141,478 151,7521,115 DTE Energy Company 55,977 54,0877,870 Duke Energy Corporation 167,771 133,8381,713 Edison International 63,854 57,7351,226 Entergy Corporation 67,809 93,386

900 EQT Corporation 36,502 34,5834,048 Exelon Corporation 176,096 163,4271,671 FirstEnergy Corp. 76,561 62,557

582 Integrys Energy Group, Inc. 31,403 27,0682,372 NextEra Energy, Inc. 120,696 122,933

329 Nicor Inc. 18,017 14,1711,685 NiSource Inc. 56,975 25,9671,300 Northeast Utilities 32,944 35,1871,500 NRG Energy Inc. 39,667 33,837

600 ONEOK, Inc. 28,505 27,5861,700 Pepco Holdings, Inc. 35,545 28,3142,303 PG&E Corporation 91,977 100,595

614 Pinnacle West Capital Corporation 27,848 23,7372,586 PPL Corporation 76,351 68,6211,651 Progress Energy, Inc. 85,658 68,8323,158 Public Service Enterprise Group Incorporated 90,280 105,2271,200 Questar Corporation 54,242 58,044

603 SCANA Corporation 24,679 22,9341,367 Sempra Energy 60,712 68,0124,983 Southern Company 182,131 176,2671,157 TECO Energy, Inc. 48,420 18,519

800 Wisconsin Energy Corporation 41,251 43,1722,440 Xcel Energy, Inc. 69,437 53,458

2,695,857 2,247,801



NET ASSETS – 100.0% 58,948,577




Energy 10.6 11.3Materials 3.3 3.5Industrials 10.4 10.4Consumer Discretionary 10.2 10.0Consumer Staples 11.4 11.3Health Care 12.1 12.7Financials 16.4 14.9Information Technology 18.6 18.7Telecommunication Services 2.9 3.1Utilities 3.8 3.9


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June 30, 2010 December 31, 2009

U.S. Dollar 54,982,709 93.3 67,095,296 100.0



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P 500 Index 11,553,921 13,015,006 19.6 19.4



June 30, 2010 December 31, 2009




Equities $58,752,156 $ – $ – $58,752,156


Equities $66,948,311 $ – $ – $66,948,311



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Scotia CanAm» Index Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $57,528,424 $66,130,207Cash 573,539 799,553Subscriptions receivable 17,981 3,586

58,119,944 66,933,346

LIABILITIESRedemptions payable 19,084 66,729Accrued expenses 48,772 29,188Payable for futures contracts 486,389 686,200

554,245 782,117

Net Assets $57,565,699 $66,151,229





2010 2009INVESTMENT INCOMEInterest $ 94,108 $ 270,304Futures contracts (4,534,233) 976,762

(4,440,125) 1,247,066

EXPENSESManagement fees (note 5) 252,095 241,757Audit fees 9,210 6,009Independent Review Committee fees 784 899Custodian fees 541 617Filing fees 8,925 8,536Legal fees 3,381 3,748Unitholder reporting costs 16,335 22,432Unitholder administration, service fees and GST 134,336 165,694Overdraft charges 1,481 2,628


315,812 297,513

Net investment income (loss) (4,755,937) 949,553

Net realized gain (loss) on foreign exchange (699,862) 4,146,161Transaction costs (5,089) (6,287)Change in unrealized appreciation (depreciation) of investments 1,742,548 (5,821,473)

Net gain (loss) on investments and transaction costs 1,037,597 (1,681,599)

Increase (decrease) in Net Assets from operations $(3,718,340) $ (732,046)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(3,717,857) $ (731,997)Class F Units $ (483) $ (49)

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.41) $ (0.07)Class F Units $ (0.42) $ (0.02)



66,151,229 65,408,743

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (3,717,857) (731,997)Class F Units (483) (49)

(3,718,340) (732,046)


Class A Units 972,577 1,259,077Payments on redemption

Class A Units (5,839,767) (3,101,591)

(4,867,190) (1,842,514)

INCREASE (DECREASE) IN NET ASSETSClass A Units (8,585,047) (2,574,511)Class F Units (483) (49)

(8,585,530) (2,574,560)


$57,565,699 $62,834,183


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As at June 30, 2010


AverageCost ($)

FairValue ($)

TREASURY BILLS – 99.9%54,100,000 Government of Canada

(U.S.) 0.06% to 0.24% due fromJul. 2, 2010 to Oct. 5, 2010 55,797,620 57,528,424


Futures Contracts – (0.8)% (486,389)OTHER ASSETS, LESS LIABILITIES – 0.9% 523,664

NET ASSETS – 100.0% 57,565,699

Note: As at June 30, 2010, the Scotia CanAm Index Fund held 210 futures contracts topurchase the Standard and Poor’s 500 Stock Index (“S&P 500 Index”) and held 2 futurescontracts to purchase the S&P 500 Index E-Mini futures contracts for settlement in September2010. These futures contracts are financial agreements to purchase the S&P 500 Index at acontracted price on a specific future date. However, the Fund does not intend to purchase theS&P 500 Index on settlement. Rather, it intends to close out each futures contract beforesettlement by entering into equal, but offsetting futures contracts.

Number of Futures Contracts Contract IssuerContractual Value



(Depreciation) ($)S&P 500 Composite Stock Index

210 Futures Contracts – Sep. 2010 61,055,969 57,321,457 (3,734,512)2 E-Mini Futures Contracts – Sep. 2010 117,509 109,184 (8,325)

TOTAL (3,742,837)

With respect to the above futures contracts, $4,600,000 of the October 1, 2010 and $2,400,000 of the October 5, 2010 Government of Canada Treasury Bills are held on margin.





Treasury Bills 99.9 100.0Futures Contracts (0.8) (1.1)


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Scotia CanAm» Index Fund (Unaudited – Continued)






Total $57,528,424 $66,130,207

* Excludes cash and preferred shares as applicable






June 30, 2010 December 31, 2009

U.S. Dollar 58,027,972 100.8 66,228,940 100.1



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


S&P 500 Index 11,398,008 12,965,641 19.8 19.6

Credit risk (note 3)The table below summarizes the credit rating of the bond and debentureinstruments, excluding cash but including preferred shares, held by the Fund.


and DebenturesInstruments (%)



and DebenturesInstruments (%)


June 30, 2010 December 31, 2009

R1- High 100.0 99.9 100.0 100.0



June 30, 2010 December 31, 2010

Accounts payable and accrued liabilities $ 67,856 $ 95,917Futures Contracts 486,389 686,200

$554,245 $782,117



Money Market Instruments $ – $ 57,528,424 $ – $ 57,528,424Futures Contracts (Long) (3,742,837) – – (3,742,837)

$(3,742,837) $57,528,424 $ – $53,785,587


Equities $ – $ 66,130,207 $ – $ 66,130,207Futures Contracts (Long) 323,626 – – 323,626

$323,626 $66,130,207 $ – $66,453,833




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Scotia CanAm» Index Fund (Unaudited – Continued)

Scotia Nasdaq Index Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $ 9,899,780 $10,286,603Cash 311,503 492,235Subscriptions receivable 2,662 2,926

10,213,945 10,781,764

LIABILITIESRedemptions payable 453 3,737Accrued expenses 9,012 4,878Payable for futures contracts 206,541 103,429

216,006 112,044

Net Assets $ 9,997,939 $10,669,720

NET ASSETS PER CLASSClass A Units $ 9,988,278 $10,669,720Class F Units $ 9,661 $ –

UNITS OUTSTANDINGClass A Units 2,413,411 2,434,471Class F Units 2,333 –

NET ASSETS PER UNITClass A Units $ 4.14 $ 4.38Class F Units $ 4.14 $ –


2010 2009INVESTMENT INCOMEInterest $ 18,308 $ 35,988Futures contracts (761,994) 1,701,801

(743,686) 1,737,789

EXPENSESManagement fees (note 5) 42,459 33,569Audit fees 6,617 6,604Independent Review Committee fees 88 93Custodian fees 249 244Filing fees 7,446 7,564Legal fees 1,801 1,946Unitholder reporting costs 4,992 5,631Unitholder administration, service fees and GST 32,202 33,602Overdraft charges 229 229


55,957 42,701

Net investment income (loss) (799,643) 1,695,088

Net realized gain (loss) on foreign exchange (135,006) 294,033Transaction costs (1,635) (2,345)Change in unrealized appreciation (depreciation) of investments 342,649 (555,302)

Net gain (loss) on investments and transaction costs 206,008 (263,614)

Increase (decrease) in Net Assets from operations $(593,635) $1,431,474

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(593,296) $1,431,386Class F Units $ (339) $ 88



2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $10,669,720 $7,631,877Class F Units – 2,373

10,669,720 7,634,250

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (593,296) 1,431,386Class F Units (339) 88

(593,635) 1,431,474



Payments on redemptionClass A Units (1,314,621) (751,218)Class F Units – (2,461)

(78,146) 577,346

INCREASE (DECREASE) IN NET ASSETSClass A Units (681,442) 2,011,193Class F Units 9,661 (2,373)

(671,781) 2,008,820

NET ASSETS – END OF PERIODClass A Units 9,988,278 9,643,070Class F Units 9,661 –

$ 9,997,939 $9,643,070


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As at June 30, 2010


AverageCost ($)

FairValue ($)

TREASURY BILLS – 99.0%9,310,000 Government of Canada

(U.S.) 0.06% to 0.24% due fromMay 17, 2010 to Oct. 5, 2010 9,596,399 9,899,780


Futures Contracts – (2.0)% (206,541)OTHER ASSETS, LESS LIABILITIES – 3.0% 304,700

NET ASSETS – 100.0% 9,997,939

Note: As at June 30, 2010, the Scotia Nasdaq Index Fund held 52 futures contracts topurchase the Nasdaq 100 Index and held 9 futures contracts to purchase the Nasdaq 100Index E-Mini futures contracts for settlement in September 2010. These futures contracts arefinancial agreements to purchase the Nasdaq 100 Index at a contracted price on a specificfuture date. However, the Fund does not intend to purchase the Nasdaq 100 Index onsettlement. Rather, it intends to close out each futures contract before settlement by enteringinto equal, but offsetting futures contracts.

Number of Futures Contracts Contract IssuerContractual Value



(Depreciation) ($)Nasdaq 100 Index

52 Futures Contracts – Sep. 2010 10,284,525 9,611,912 (672,614)9 E-Mini Futures Contracts – Sep. 2010 362,482 332,720 (29,762)

TOTAL (702,376)

With respect to the above futures contracts, $900,000 of the October 1, 2010 and $400,000 of the October 5, 2010, Government of Canada Treasury Bills are held on margin.





Treasury Bills 99.0 96.4Futures Contracts (2.0) (1.0)


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Scotia Nasdaq Index Fund (Unaudited – Continued)






Total $9,899,780 $10,286,603







June 30, 2010 December 31, 2009

U.S. Dollar 10,148,313 101.5 10,667,640 100.0



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Nasdaq 100 Index 1,979,592 2,112,605 19.8 19.8

Credit risk (note 3)The table below summarizes the credit rating of the bond and debentureinstruments, excluding cash but including preferred shares, held by the Fund.







June 30, 2010 December 31, 2009

R1- High 100.0 99.0 100.0 96.4



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $ 9,465 $ 8,615Futures Contracts 206,541 103,429

$216,006 $112,044



Money Market Instruments $ – $ 9,899,780 $ – $ 9,899,780Futures Contracts (Long) (702,376) – – (702,376)

$(702,376) $9,899,780 $ – $9,197,404


Money Market Instruments $ – $ 10,286,603 $ – $ 10,286,603Futures Contracts (Long) 344,720 – – 344,720

$344,720 $10,286,603 $ – $10,631,323




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Scotia Nasdaq Index Fund (Unaudited – Continued)

Scotia International Index Fund (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at fair value $58,378,775 $69,033,633Cash 62,369 131,389Accrued investment income 4,161 3,707Subscriptions receivable 13,261 17,722Receivable for futures contracts 10,293,469 3,286,005

68,752,035 72,472,456

LIABILITIESRedemptions payable 5,046 21,480Accrued expenses 24,250 16,500Payable for futures contracts 5,701,263 427,851

5,730,559 465,831

Net Assets $63,021,476 $72,006,625

NET ASSETS PER CLASSClass A Units $21,450,511 $26,206,149Class F Units $ – $ 6,527Class I Units $41,570,965 $45,793,949

UNITS OUTSTANDINGClass A Units 3,626,102 3,825,634Class F Units – 951Class I Units 6,650,624 6,360,627

NET ASSETS PER UNITClass A Units $ 5.92 $ 6.85Class F Units $ – $ 6.86Class I Units $ 6.25 $ 7.20


2010 2009INVESTMENT INCOMEInterest $ 112,522 $ 181,718Futures contracts (5,545,301) 1,933,186Securities lending 2,775 1,281Foreign withholding taxes/tax reclaims (55) –

(5,430,059) 2,116,185

EXPENSESManagement fees (note 5) 95,375 88,328Audit fees 6,616 5,800Independent Review Committee fees 264 295Custodian fees 778 1,032Filing fees 8,263 8,458Legal fees 2,203 2,397Unitholder reporting costs 7,871 9,831Unitholder administration, service fees and GST 57,316 65,160Overdraft charges 41,067 54,390


200,595 196,067

Net investment income (loss) (5,630,654) 1,920,118

Net realized gain (loss) on investments sold 420 –Net realized gain (loss) on futures contracts (9,697,408) (2,818,675)Net realized gain (loss) on foreign exchange 79,974 (53,636)Transaction costs (37,276) (26,953)Change in unrealized appreciation (depreciation) of investments (796) 135,079Change in unrealized appreciation (depreciation) of futures contracts (415,598) –Change in unrealized appreciation (depreciation) of currency futures 6,063,811 2,279,590



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(3,476,290) $ 400,410Class F Units $ (447) $ 109Class I Units $(6,160,790) $ 1,035,004



2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $26,206,149 $23,879,350Class F Units 6,527 5,874Class I Units 45,793,949 19,280,704

72,006,625 43,165,928

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (3,476,290) 400,410Class F Units (447) 109Class I Units (6,160,790) 1,035,004

(9,637,527) 1,435,523



Payments on redemptionClass A Units (2,747,789) (1,409,371)Class F Units (6,080) –Class I Units (5,304,089) (946,406)

652,378 3,813,557

INCREASE (DECREASE) IN NET ASSETSClass A Units (4,755,638) 489,260Class F Units (6,527) 109Class I Units (4,222,984) 4,759,711

(8,985,149) 5,249,080

NET ASSETS – END OF PERIODClass A Units 21,450,511 24,368,610Class F Units – 5,983Class I Units 41,570,965 24,040,415

$63,021,476 $48,415,008


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Scotia International Index Fund (Unaudited – Continued)



AverageCost ($)

FairValue ($)


24,500,000 Government of Canada0.25% to 0.49% due fromJul. 8, 2010 to Sep. 2, 2010 24,474,287 24,490,575

Bankers’ Acceptances – 29.2%5,800,000 Canadian Imperial Bank of Commerce

0.51% to 0.53% due fromJul. 2, 2010 to Jul. 14, 2010 5,797,888 5,799,714

2,900,000 HSBC Bank of Canada0.56% due Jul. 21, 2010 2,898,666 2,899,111

5,600,000 National Bank of Canada0.52% to 0.53% due fromJul. 12, 2010 to Jul. 26, 2010 5,597,511 5,598,398


1,000,000 Toronto-Dominion Bank, The0.39% due Jul. 5, 2010 999,510 999,957

18,392,242 18,397,008

Bearers’ Deposit Notes – 13.8%5,800,000 Bank of Montreal

0.54% due Jul. 28, 2010 5,797,448 5,797,703


AverageCost ($)

FairValue ($)

MONEY MARKET INSTRUMENTS (cont’d)Bearers’ Deposit Notes (cont’d)

2,900,000 Caisse cent Desjardins0.54% due Jul. 19, 2010 2,898,579 2,899,225

8,696,027 8,696,928

Term Deposits – 3.1%2,000,000 Societe Generale

0.56% due Jul. 27, 2010 1,999,020 1,999,204

Short-Term Bonds – 7.6%2,200,000 HBOS Treasury Services plc

0.64% due Jul. 19, 2010 2,196,546 2,199,1422,600,000 Rabobank Nederland

0.85% due Feb. 8, 2012 2,600,000 2,595,918

4,796,546 4,795,060


Futures Contracts – 7.3% 4,592,207OTHER ASSETS, LESS LIABILITIES – 0.1% 50,494

NET ASSETS – 100.0% 63,021,476

I N D E X F U T U R E S C O N T R A C T S

Number of Contracts Issuer/Country Index Settlement DateContractual Value



(Depreciation) ($)EUROPE

291 DJ EURO STOXX 50 Sep. 2010 10,132,671 9,583,628 (549,043)FRANCE

69 CAC 40 Index Sep. 2010 3,233,309 3,038,704 (194,605)GERMANY

12 DAX Index Sep. 2010 2,391,740 2,306,641 (85,099)ITALY

14 S&P/MIB Index Sep. 2010 1,817,584 1,768,854 (48,730)NETHERLANDS

19 Amsterdam Index Jul. 2010 1,649,409 1,545,178 (104,231)SPAIN

18 IBEX 35 Plus Index Jul. 2010 2,219,050 2,154,791 (64,259)SWEDEN

160 OMX Index Jul. 2010 2,243,049 2,202,087 (40,962)SWITZERLAND

77 Swiss Market Index Sep. 2010 4,900,905 4,633,362 (267,543)UNITED KINGDOM

193 FTSE 100 Index Sep. 2010 15,761,426 14,767,324 (994,102)AUSTRALIA

51 SPI 200 Sep. 2010 5,164,254 4,865,985 (298,269)HONG KONG

10 Hang Seng Index Jul. 2010 1,414,121 1,371,147 (42,974)JAPAN

141 Topix Index Sep. 2010 14,506,495 14,222,591 (283,904)

(2,973,721)

C U R R E N C Y F U T U R E S C O N T R A C T S

Number of Contracts Settlement DateContractual Value



(Depreciation) ($)

65 Australian $ against U.S.$ Sep. 2010 5,613,506 5,788,992 175,486158 British Pound against U.S.$ Sep. 2010 15,105,783 15,707,578 601,795116 Japanese Yen against U.S.$ Sep. 2010 16,914,877 17,449,349 534,47246 Swiss Franc against U.S.$ Sep. 2010 5,308,774 5,684,260 375,486

150 Euro against U.S.$ Sep. 2010 23,797,195 24,424,355 627,160(692) Canadian $ against U.S.$ Sep. 2010 (69,939,654) (69,196,320) 743,334

3,057,733

The above index futures and currency futures contracts are financial agreements to purchase the indexes and foreign currencies at a contracted price on a specific future date. However, the Funddoes not intend to purchase the indexes and foreign currencies on settlement. Rather, it intends to close out each index futures contract and currency futures contract before settlement byentering into equal, but offsetting futures contracts and currency future contracts.

With respect to the above futures contracts, $2,700,000 of the July 22, 2010 and $3,000,000 of the July 22, 2010, Government of Canada Treasury Bills are held on margin.

The futures contracts outstanding at June 30, 2010 are placed with a financial institution with a credit rating of AA- by Standard & Poor’s.


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Treasury Bills 38.9 36.2Bankers’ Acceptances 29.2 28.0Bearers’ Deposit Notes 13.8 3.5Commercial Paper – 24.0Term Deposits 3.1 –Short-Term Bonds 7.6 4.2Futures Contracts 7.3 4.0


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Interest rate risk (note 3)The table below summarizes the Fund’s exposure to interest rate risk by theremaining term to maturity of the Fund’s portfolio of bond and debenturesinstruments.


Less than 1 year $55,782,857 $69,033,6331-3 years 2,595,918 –3-5 years – –5-10 years – –H 10 years – –

Total $58,378,775 $69,033,633


As at June 30, 2010, had the prevailing interest rates increased or decreased by0.25%, assuming a parallel shift in the yield curve and all other variables heldconstant, Net Assets would have decreased or increased approximately$223,443, 0.4% of the total net assets. As of December 31, 2009, there were nobonds and debenture instruments other than short term bond instruments. Asthe result, there was no interest rate exposure as of December 31, 2009. Inpractice, actual results may differ from this sensitivity analysis and thedifference could be material.






June 30, 2010 December 31, 2009

Swedish Krona 2,202,087 3.5 2,331,126 3.2Hong Kong Dollar 1,371,147 2.2 1,484,886 2.1Australian Dollar (923,007) (1.5) (335,350) (0.5)British Pound (940,254) (1.5) 2,222,240 3.1Swiss Franc (1,050,898) (1.7) (65,395) (0.1)Japanese Yen (3,226,758) (5.1) 808,466 1.1European Euro (4,026,559) (6.4) (2,977,325) (4.1)U.S. Dollar (5,843,049) (9.3) (1,733,971) (2.4)

Total (12,437,291) (19.8) 1,734,677 2.4

As at June 30, 2010, if the Canadian dollar had strengthened or weakened by10% in relation to all other foreign currencies, with all other factors remainingconstant, net assets would have decreased or increased, respectively by($1,243,729) approximately 2.0% of total net assets, (December 31, 2009 –$173,468, approximately 0.2% of total net assets). In practice, actual resultsmay differ from this sensitivity analysis and the difference could be material.


BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


Morgan Stanley CapitalInternational Europe, Australasiaand the Far East Index 11,974,080 13,681,152 19.0 19.0

Credit risk (note 3)The table below summarizes the credit rating of the debt instruments,excluding cash but including preferred shares, held by the Fund.

Percentage ofTotal Fixed-Income


Percentage ofTotal Fixed-Income


June 30, 2010 December 31, 2009

Short-Term RatingR1- High 78.8 73.0 76.1 73.0R1- Middle 13.0 12.0 9.6 9.1R3-High – – 5.1 4.9Unrated – – 4.9 4.7Bond Credit RatingAAA 4.4 4.1 – –AA 3.8 3.5 4.3 4.2

Total 100.0 92.6 100.0 95.9



June 30, 2010 December 31, 2009

Accounts payable and accrued liabilities $ 29,296 $ 37,980Futures contracts 5,701,263 427,851

$5,730,559 $465,831




(659,322) 58,378,775 – 57,719,453

Futures Contracts (Short) 743,334 – – 743,334

$ 84,012 $58,378,775 $ – $58,462,787



(119,428) 69,033,633 – 68,914,205

Futures Contracts (Short) (1,384,879) – – (1,384,879)

$(1,504,307) $69,033,633 $ – $67,529,326




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Scotia Selected Income & Modest Growth Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $314,657,594 $281,509,177Cash 3,226,447 2,808,304Subscriptions receivable 377,070 513,934

318,261,111 284,831,415

LIABILITIESDistributions payable – 4,698Redemptions payable 146,454 103,297Accrued expenses 453,464 –

599,918 107,995

Net Assets $317,661,193 $284,723,420

NET ASSETS PER CLASSClass A Units $317,649,057 $284,711,318Advisor Class Units $ 12,136 $ 12,102

UNITS OUTSTANDINGClass A Units 29,237,223 26,319,561Advisor Class Units 1,129 1,129

NET ASSETS PER UNITClass A Units $ 10.86 $ 10.82Advisor Class Units $ 10.75 $ 10.72


2010 2009INVESTMENT INCOMEDividends $ 404,370 $ 219,207Interest 4,751,910 4,664,870

5,156,280 4,884,077

EXPENSESManagement fees (note 5) 2,416,729 1,934,641Audit fees 8,754 9,258Independent Review Committee fees 504 441Custodian fees 1,012 –Filing fees 17,521 18,588Legal fees 2,747 3,395Unitholder reporting costs 11,779 12,868Unitholder administration, service fees and GST 187,366 160,305Overdraft charges – 267


2,640,169 2,112,326


Net realized gain (loss) on investments sold 41,560 (1,577,498)Change in unrealized appreciation (depreciation) of investments (1,392,722) 13,002,231


Increase (decrease) in Net Assets from operations $ 1,164,949 $14,196,484

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ 1,164,915 $14,195,712Advisor Class Units $ 34 $ 772

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.04 $ 0.58Advisor Class Units $ 0.03 $ 0.69


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $284,711,318 $239,800,135Advisor Class Units 12,102 10,722

284,723,420 239,810,857

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 1,164,915 14,195,712Advisor Class Units 34 772

1,164,949 14,196,484



Class A Units – 838Payments on redemption

Class A Units (24,211,190) (16,469,209)

31,772,824 5,275,602

INCREASE (DECREASE) IN NET ASSETSClass A Units 32,937,739 19,471,314Advisor Class Units 34 772

32,937,773 19,472,086

NET ASSETS – END OF PERIODClass A Units 317,649,057 259,271,449Advisor Class Units 12,136 11,494

$317,661,193 $259,282,943



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Numberof Units Issuer

AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 72.1%10,880,656 Scotia Bond Fund Class I 109,227,530 111,564,7934,867,196 Scotia Canadian Income Fund Class I 62,733,753 63,688,724

594,617 Scotia Global Bond Fund Class I 5,124,858 5,072,8554,524,539 Scotia Mortgage Income Fund Class I 48,956,089 48,693,537

226,042,230 229,019,909

CANADIAN EQUITY FUNDS – 13.3%882,394 Scotia Canadian Dividend Fund Class I 29,869,586 30,206,647136,401 Scotia Canadian Growth Fund Class I 7,633,857 7,635,858235,135 Scotia Resources Fund Class I 4,346,536 4,562,388

41,849,979 42,404,893

FOREIGN EQUITY FUNDS – 13.6%451,372 Scotia Global Climate Change Fund Class I 3,321,745 3,014,807932,515 Scotia Global Growth Fund Class I 28,269,307 24,489,435561,209 Scotia Global Small Cap Fund Class I 4,398,881 3,171,000

1,159,607 Scotia International Value Fund Class I 8,075,415 6,320,438914,734 Scotia U.S. Value Fund Class I 7,088,842 6,237,112

51,154,190 43,232,792



NET ASSETS – 100.0% 317,661,193




Fixed Income Funds 72.1 71.1Canadian Equity Funds 13.3 14.0Foreign Equity Funds 13.6 13.8


Other price risk (note 3)The table below indicates the estimated impact on the net assets of thePortfolio due to a 20% change in the respective market indices, with all othervariables held constant. The Portfolio’s historical sensitivity measure may not berepresentative of its future sensitivity measure, and accordingly, the impact onnet assets could be materially different.

BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009





Liquidity risk (note 3)The table below summarizes a maturity analysis of cash flows associated withthe maturities of the Portfolio’s financial liabilities:


June 30, 2010 December 31, 2009


Fair value classification (note 2)The tables below illustrate the classification of the Portfolio’s financialinstruments within the fair value hierarchy as at June 30, 2010 andDecember 31, 2009, respectively.


Mutual Funds $314,657,594 $ – $ – $314,657,594


Mutual Funds $281,509,177 $ – $ – $281,509,177




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Scotia Selected Income & Modest Growth Portfolio (Unaudited – Continued)

Scotia Selected Balanced Income & Growth Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $930,164,311 $878,660,393Cash 5,683,006 8,991,174Subscriptions receivable 705,466 1,170,409

936,552,783 888,821,976

LIABILITIESRedemptions payable 513,834 4,254Accrued expenses 1,456,960 449,325

1,970,794 453,579

Net Assets $934,581,989 $888,368,397

NET ASSETS PER CLASSClass A Units $934,428,616 $888,251,472Advisor Class Units $ 73,728 $ 69,477Class F Units $ 79,645 $ 47,448


NET ASSETS PER UNITClass A Units $ 11.26 $ 11.44Advisor Class Units $ 11.03 $ 11.22Class F Units $ 11.28 $ 11.30


2010 2009INVESTMENT INCOMEDividends $ 2,133,703 $ 1,341,903Interest 9,876,612 8,797,639

12,010,315 10,139,542

EXPENSESManagement fees (note 5) 8,056,443 6,304,361Audit fees 9,865 10,389Independent Review Committee fees 1,404 1,287Custodian fees 1,464 –Filing fees 33,028 34,246Legal fees 4,794 5,283Unitholder reporting costs 26,482 30,474Unitholder administration, service fees and GST 555,830 462,538Overdraft charges – 573


8,682,330 6,774,392





INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(14,788,683) $59,463,135Advisor Class Units $ (1,349) $ 4,342Class F Units $ (3,158) $ 4,064

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.18) $ 0.81Advisor Class Units $ (0.21) $ 0.93Class F Units $ (0.52) $ 0.99


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $888,251,472 $710,215,719Advisor Class Units 69,477 44,224Class F Units 47,448 39,803

888,368,397 710,299,746

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (14,788,683) 59,463,135Advisor Class Units (1,349) 4,342Class F Units (3,158) 4,064

(14,793,190) 59,471,541


Class A Units 120,823,073 60,686,301Advisor Class Units 5,600 768Class F Units 82,665 –


Payments on redemptionClass A Units (59,857,246) (36,610,059)Class F Units (47,310) –

61,006,782 24,077,046

INCREASE (DECREASE) IN NET ASSETSClass A Units 46,177,144 83,539,413Advisor Class Units 4,251 5,110Class F Units 32,197 4,064

46,213,592 83,548,587

NET ASSETS – END OF PERIODClass A Units 934,428,616 793,755,132Advisor Class Units 73,728 49,334Class F Units 79,645 43,867

$934,581,989 $793,848,333

S C O T I A F U N D S S E M I - A N N U A L R E P O R T T O U N I T H O L D E R S – 2 0 1 0S

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AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 50.3%21,606,730 Scotia Bond Fund Class I 216,819,142 221,544,578

9,526,350 Scotia Canadian Income Fund Class I 122,286,440 124,655,1432,902,073 Scotia Global Bond Fund Class I 24,916,520 24,758,4529,238,710 Scotia Mortgage Income Fund Class I 99,895,657 99,427,920

463,917,759 470,386,093

CANADIAN EQUITY FUNDS – 24.2%4,610,409 Scotia Canadian Dividend Fund Class I 159,590,761 157,826,290

819,718 Scotia Canadian Growth Fund Class I 48,600,031 45,888,5341,171,831 Scotia Resources Fund Class I 21,537,447 22,737,391

229,728,239 226,452,215

FOREIGN EQUITY FUNDS – 25.0%2,131,166 Scotia Global Climate Change Fund Class I 15,664,747 14,234,4812,816,850 Scotia Global Growth Fund Class I 88,865,590 73,975,2613,821,616 Scotia Global Opportunities Fund Class I 32,262,781 27,901,9992,461,016 Scotia Global Small Cap Fund Class I 19,955,105 13,905,4781,472,817 Scotia International Index Fund Class I 10,397,271 9,269,1724,330,657 Scotia International Value Fund Class I 31,517,521 23,604,248

734,721 Scotia Latin American Fund Class I 18,914,983 19,467,3061,295,498 Scotia Pacific Rim Fund Class I 15,000,563 14,300,094

874,967 Scotia U.S. Index Fund Class I 9,002,357 8,838,9164,081,403 Scotia U.S. Value Fund Class I 32,167,265 27,829,048

273,748,183 233,326,003



NET ASSETS – 100.0% 934,581,989







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009




Blended Benchmark Impact(product of all the benchmarksbelow) 196,262,218 188,334,100 21.0 21.2



June 30, 2010 December 31, 2009




Mutual Funds $930,164,311 $ – $ – $930,164,311


Mutual Funds $878,660,393 $ – $ – $878,660,393



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167

Scotia Selected Balanced Income & Growth Portfolio (Unaudited – Continued)

Scotia Selected Moderate Growth Portfolio (Unaudited)


June 30,2010

December 31,2009


573,270,314 562,155,209

LIABILITIESDistribution payable – 292Redemptions payable 181,583 123,149Accrued expenses 976,490 –

1,158,073 123,441

Net Assets $572,112,241 $562,031,768

NET ASSETS PER CLASSClass A Units $572,112,117 $562,031,669Advisor Class Units $ 124 $ 99

UNITS OUTSTANDINGClass A Units 49,339,268 46,833,390Advisor Class Units 11 8




5,527,088 4,280,491



5,899,242 4,611,360





INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(19,877,160) $44,553,080Advisor Class Units $ (5) $ 8

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.41) $ 0.98Advisor Class Units $ (0.53) $ 1.05


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $562,031,669 $446,383,471Advisor Class Units 99 76

562,031,768 446,383,547

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (19,877,160) 44,553,080Advisor Class Units (5) 8

(19,877,165) 44,553,088


Class A Units 69,989,412 36,633,843Advisor Class Units 30 –


Payments on redemptionClass A Units (40,031,804) (22,507,240)

29,957,638 14,126,464

INCREASE (DECREASE) IN NET ASSETSClass A Units 10,080,448 58,679,544Advisor Class Units 25 8

10,080,473 58,679,552

NET ASSETS – END OF PERIODClass A Units 572,112,117 505,063,015Advisor Class Units 124 84

$572,112,241 $505,063,099


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AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 30.6%7,416,465 Scotia Bond Fund Class I 74,520,238 76,044,7163,334,905 Scotia Canadian Income Fund Class I 42,611,505 43,638,2272,447,995 Scotia Global Bond Fund Class I 21,177,720 20,884,5773,204,592 Scotia Mortgage Income Fund Class I 35,029,123 34,488,139

173,338,586 175,055,659

CANADIAN EQUITY FUNDS – 34.2%3,982,393 Scotia Canadian Dividend Fund Class I 141,605,024 136,327,654

703,854 Scotia Canadian Growth Fund Class I 44,368,043 39,402,3581,025,158 Scotia Resources Fund Class I 18,852,510 19,891,443

204,825,577 195,621,455

FOREIGN EQUITY FUNDS – 34.7%1,714,743 Scotia Global Climate Change Fund Class I 12,656,826 11,453,1082,499,713 Scotia Global Growth Fund Class I 80,420,414 65,646,7043,120,793 Scotia Global Opportunities Fund Class I 26,139,452 22,785,2202,013,385 Scotia Global Small Cap Fund Class I 16,764,444 11,376,2271,843,660 Scotia International Index Fund Class I 12,966,448 11,603,0774,104,172 Scotia International Value Fund Class I 31,045,016 22,369,787

535,486 Scotia Latin American Fund Class I 13,833,993 14,188,3311,018,050 Scotia Pacific Rim Fund Class I 11,836,117 11,237,541

544,195 Scotia U.S. Index Fund Class I 5,602,179 5,497,4533,274,944 Scotia U.S. Value Fund Class I 26,166,008 22,330,209

237,430,897 198,487,657



NET ASSETS – 100.0% 572,112,241







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009







June 30, 2010 December 31, 2009




Mutual Funds $569,164,771 $ – $ – $569,164,771


Mutual Funds $556,797,223 $ – $ – $556,797,223



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169

Scotia Selected Moderate Growth Portfolio (Unaudited – Continued)

Scotia Selected Aggressive Growth Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $110,956,983 $113,294,882Cash 682,082 975,855Subscriptions receivable 103,624 173,537

111,742,689 114,444,274

LIABILITIESRedemptions payable 105,972 142,954Accrued expenses 216,792 –

322,764 142,954

Net Assets $111,419,925 $114,301,320

NET ASSETS PER CLASSClass A Units $111,406,360 $114,287,071Advisor Class Units $ 13,565 $ 14,249

UNITS OUTSTANDINGClass A Units 9,674,123 9,455,312Advisor Class Units 1,180 1,180



2010 2009INVESTMENT INCOMEDividends $ 450,494 $ 260,998Interest 350,997 250,658

801,491 511,656

EXPENSESManagement fees (note 5) 1,204,575 944,403Audit fees 8,754 8,172Independent Review Committee fees 198 194Custodian fees 1,405 –Filing fees 14,933 16,632Legal fees 2,051 2,846Unitholder reporting costs 6,796 7,743Unitholder administration, service fees and GST 94,401 81,643Overdraft charges – 166


1,326,859 1,039,879


Net realized gain (loss) on investments sold (78,722) (1,561,098)Change in unrealized appreciation (depreciation) of investments (4,917,294) 11,923,665



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(5,520,700) $ 9,832,671Advisor Class Units $ (684) $ 1,673

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.57) $ 1.07Advisor Class Units $ (0.58) $ 2.60


2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $114,287,071 $ 88,345,125Advisor Class Units 14,249 71

114,301,320 88,345,196

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (5,520,700) 9,832,671Advisor Class Units (684) 1,673

(5,521,384) 9,834,344


Class A Units 13,037,028 7,667,467Advisor Class Units – 11,103


2,639,989 3,039,646

INCREASE (DECREASE) IN NET ASSETSClass A Units (2,880,711) 12,861,214Advisor Class Units (684) 12,776

(2,881,395) 12,873,990

NET ASSETS – END OF PERIODClass A Units 111,406,360 101,206,339Advisor Class Units 13,565 12,847

$111,419,925 $101,219,186


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AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 15.6%566,064 Scotia Bond Fund Class I 5,687,650 5,804,142261,580 Scotia Canadian Income Fund Class I 3,336,179 3,422,856618,949 Scotia Global Bond Fund Class I 5,313,282 5,280,441270,709 Scotia Mortgage Income Fund Class I 2,959,448 2,913,393

17,296,559 17,420,832

CANADIAN EQUITY FUNDS – 43.1%958,058 Scotia Canadian Dividend Fund Class I 34,430,697 32,796,813174,564 Scotia Canadian Growth Fund Class I 11,068,519 9,772,227280,057 Scotia Resources Fund Class I 5,145,917 5,434,030

50,645,133 48,003,070

FOREIGN EQUITY FUNDS – 40.9%422,715 Scotia Global Climate Change Fund Class I 3,123,073 2,823,398574,185 Scotia Global Growth Fund Class I 18,682,554 15,079,064748,308 Scotia Global Opportunities Fund Class I 6,364,784 5,463,471494,169 Scotia Global Small Cap Fund Class I 4,129,951 2,792,202357,166 Scotia International Index Fund Class I 2,531,964 2,247,826904,736 Scotia International Value Fund Class I 6,895,301 4,931,261125,630 Scotia Latin American Fund Class I 3,230,671 3,328,710209,485 Scotia Pacific Rim Fund Class I 2,426,794 2,312,357161,179 Scotia U.S. Index Fund Class I 1,657,018 1,628,234722,528 Scotia U.S. Value Fund Class I 5,735,001 4,926,558

54,777,111 45,533,081



NET ASSETS – 100.0% 111,419,925







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009




Blended Benchmarks Impact(product of all the benchmarksabove) 23,175,344 23,774,675 20.8 20.8



June 30, 2010 December 31, 2009




Mutual Funds $110,956,983 $ – $ – $110,956,983


Mutual Funds $113,294,882 $ – $ – $113,294,882



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171

Scotia Selected Aggressive Growth Portfolio (Unaudited – Continued)

Scotia Partners Income & Modest Growth Portfolio (Unaudited)


June 30,2010

December 31,2009


372,019,427 358,938,828


912,238 177,493

Net Assets $371,107,189 $358,761,335

NET ASSETS PER CLASSClass A Units $371,098,020 $358,761,335Class F Units $ 9,169 $ –

UNITS OUTSTANDINGClass A Units 32,556,915 31,616,902Class F Units 802 –

NET ASSETS PER UNITClass A Units $ 11.40 $ 11.35Class F Units $ 11.44 $ –



5,877,013 5,725,233



3,653,989 3,216,919


Net realized gain (loss) on investments sold (782,120) (2,551,978)Change in unrealized appreciation (depreciation) of investments 141,661 18,437,413



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $1,582,596 $18,393,749Class F Units $ (31) $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.05 $ 0.58Class F Units $ (0.04) $ –



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 1,582,596 18,393,749Class F Units (31) –

1,582,565 18,393,749





10,763,289 (6,291,013)

INCREASE (DECREASE) IN NET ASSETSClass A Units 12,336,685 12,102,736Class F Units 9,169 –

12,345,854 12,102,736

NET ASSETS – END OF PERIODClass A Units 371,098,020 338,146,158Class F Units 9,169 –

$371,107,189 $338,146,158


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MarketValue ($)

FIXED INCOME FUNDS – 64.9%5,383,561 Fidelity Canadian Bond Fund Series O 69,580,993 72,345,3664,616,631 Mackenzie Sentinel Bond Fund Series O 50,264,023 52,763,011

625,823 Mackenzie Sentinel Real Return Bond Fund Series O 7,038,079 7,363,0003,500,937 Scotia Canadian Corporate Bond Fund Class I 34,522,172 36,191,2835,515,760 Scotia Canadian Income Fund Class I 71,865,678 72,175,372

233,270,945 240,838,032

CANADIAN EQUITY FUNDS – 15.6%926,790 CI Canadian Investment Fund Class I 23,916,485 22,585,867678,900 Dynamic Focus+ Real Estate Fund Series O 3,839,559 3,713,584918,209 Scotia Canadian Dividend Fund Class I 34,772,561 31,432,673

62,528,605 57,732,124

FOREIGN EQUITY FUNDS – 18.6%687,120 AGF Emerging Markets Fund Series O 6,411,230 7,578,934440,662 CI American Value Fund Class I 8,397,993 7,028,559541,289 Dynamic American Value Fund Series O 3,617,961 3,529,202189,092 Dynamic Global Dividend Value Fund Series O 1,832,305 1,830,414602,838 Mackenzie Cundill Value Fund Series O 3,831,519 3,401,030633,075 Mackenzie Universal American Growth Class (Unhedged) Series O 8,874,004 9,951,182

3,691,953 Mackenzie Universal International Stock Fund Series O 17,572,113 14,928,411260,432 Mutual Discovery Fund Series O 4,057,709 3,630,417

1,043,622 Templeton International Stock Fund Series O 20,969,931 17,334,566

75,564,765 69,212,715



NET ASSETS – 100.0% 371,107,189







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009







June 30, 2010 December 31, 2010




Mutual Funds $367,782,871 $ – $ – $367,782,871


Mutual Funds $355,109,195 $ – $ – $355,109,195



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173

Scotia Partners Income & Modest Growth Portfolio (Unaudited – Continued)

Scotia Partners Balanced Income & Growth Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $1,344,412,939 $1,337,839,299Cash 7,006,068 12,720,809Subscriptions receivable 1,286,355 1,249,690

1,352,705,362 1,351,809,798

LIABILITIESDistributions payable – 4,165Redemptions payable 867,626 623,632Accrued expenses 2,393,324 –

3,260,950 627,797

Net Assets $1,349,444,412 $1,351,182,001






15,231,222 13,638,528



14,539,266 12,071,732


Net realized gain (loss) on investments sold (7,197,044) (8,480,850)Change in unrealized appreciation (depreciation) of investments (19,930,540) 102,943,190



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(26,432,166) $ 96,011,921Class F Units $ (3,462) $ 17,215




1,351,182,001 1,129,827,074


(26,435,628) 96,029,136




Payments on redemptionClass A Units (90,432,967) (59,997,724)Class F Units (25,099) (19,860)

24,698,039 4,666,867

INCREASE (DECREASE) IN NET ASSETSClass A Units (1,870,702) 100,692,653Class F Units 133,113 3,350

(1,737,589) 100,696,003


$1,349,444,412 $1,230,523,077


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174



AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 40.7%8,820,430 CI Signature Corporate Bond Fund Class I 85,232,649 88,909,9378,883,852 Fidelity Canadian Bond Fund Series O 115,221,207 119,382,9807,878,412 Mackenzie Sentinel Bond Fund Series O 85,923,377 90,041,5823,131,825 Mackenzie Sentinel Real Return Bond Fund Series O 35,228,763 36,846,8658,964,557 Scotia Canadian Corporate Bond Fund Class I 88,625,794 92,672,0099,259,590 Scotia Canadian Income Fund Class I 119,900,570 121,164,513

530,132,360 549,017,886

CANADIAN EQUITY FUNDS – 25.2%1,156,613 AGF Canadian Stock Fund Series O 51,783,800 59,091,3452,408,039 CI Canadian Investment Fund Class I 64,567,934 58,683,9212,378,619 Dynamic Focus+ Real Estate Fund Series O 14,097,258 13,011,0461,168,440 Dynamic Focus+ Small Business Fund Series O 13,451,928 13,460,4293,041,127 Dynamic Value Fund of Canada Series O 26,364,330 26,609,8571,796,686 Fidelity True North Fund Series O 60,292,279 52,368,0213,433,202 Scotia Canadian Dividend Fund Class I 135,138,677 117,527,437

365,696,206 340,752,056

FOREIGN EQUITY FUNDS – 33.7%4,964,863 AGF Emerging Markets Fund Series O 47,771,396 54,762,4431,630,277 CI American Value Fund Class I 31,185,222 26,002,9101,574,181 CI Global Small Companies Fund Class I 29,248,570 25,879,5424,005,904 Dynamic American Value Fund Series O 26,778,192 26,118,4971,389,914 Dynamic Global Dividend Value Fund Series O 13,468,267 13,454,3681,945,210 Fidelity Global Real Estate Fund Series O 15,491,642 13,480,8875,680,360 Mackenzie Cundill Value Fund Series O 36,818,524 32,046,8812,809,932 Mackenzie Universal American Growth Class (Unhedged) Series O 39,405,784 44,168,762

16,017,403 Mackenzie Universal International Stock Fund Series O 78,605,367 64,766,3671,434,393 Mutual Discovery Fund Series O 22,785,833 19,995,4421,284,961 Templeton Global Smaller Companies Fund Series O 24,989,200 26,161,7976,490,373 Templeton International Stock Fund Series O 134,427,028 107,805,101

500,975,025 454,642,997



NET ASSETS – 100.0% 1,349,444,412







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009







June 30, 2010 December 31, 2009




Mutual Funds $1,344,412,939 $ – $ – $1,344,412,939


Mutual Funds $1,337,839,299 $ – $ – $1,337,839,299



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Scotia Partners Balanced Income & Growth Portfolio (Unaudited – Continued)


175

Scotia Partners Moderate Growth Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $1,422,583,385 $1,435,886,366Cash 7,230,941 12,270,206Subscriptions receivable 1,017,227 807,681

1,430,831,553 1,448,964,253

LIABILITIESRedemptions payable 484,999 529,831Accrued expenses 2,728,092 –

3,213,091 529,831

Net Assets $1,427,618,462 $1,448,434,422






11,778,485 10,892,438



16,651,605 13,526,191

Net investment income (loss) (4,873,120) (2,633,753)








1,448,434,422 1,176,332,691


(35,424,118) 119,338,746





14,608,158 3,638,453

INCREASE (DECREASE) IN NET ASSETSClass A Units (20,670,238) 122,875,391Class F Units (145,722) 101,808

(20,815,960) 122,977,199


$1,427,618,462 $1,299,309,890


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AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 25.7%10,933,182 CI Signature Corporate Bond Fund Class I 105,954,398 110,206,4747,127,909 Fidelity Canadian Bond Fund Series O 92,561,049 95,786,2685,057,360 Scotia Canadian Corporate Bond Fund Class I 49,926,756 52,280,9668,272,858 Scotia Canadian Income Fund Class I 106,740,082 108,252,834

355,182,285 366,526,542

CANADIAN EQUITY FUNDS – 33.8%1,349,799 AGF Canadian Stock Fund Series O 62,924,631 68,961,2082,287,888 CI Canadian Investment Fund Class I 58,954,561 55,755,8213,813,795 Dynamic Focus+ Real Estate Fund Series O 23,014,590 20,861,4593,896,030 Dynamic Focus+ Small Business Fund Series O 36,716,040 44,882,2707,172,002 Dynamic Value Fund of Canada Series O 63,882,799 62,755,0143,103,428 Fidelity True North Fund Series O 84,905,472 90,455,6144,048,324 Scotia Canadian Dividend Fund Class I 162,348,538 138,584,656

492,746,631 482,256,042

FOREIGN EQUITY FUNDS – 40.2%7,389,789 AGF Emerging Markets Fund Series O 72,468,677 81,509,3741,741,130 CI American Value Fund Class I 28,574,203 27,771,0222,508,669 CI Global Small Companies Fund Class I 47,382,357 41,242,5216,366,362 Dynamic American Value Fund Series O 45,637,872 41,508,6792,949,347 Dynamic Global Dividend Value Fund Series O 28,579,175 28,549,6814,971,029 Dynamic Global Value Fund Series O 33,238,222 32,261,9763,115,774 Fidelity Global Real Estate Fund Series O 25,241,531 21,593,2517,827,553 Mackenzie Cundill Value Fund Series O 51,638,991 44,160,6991,848,317 Mackenzie Universal American Growth Class (Unhedged) Series O 25,836,441 29,053,319

14,299,899 Mackenzie Universal International Stock Fund Series O 72,358,718 57,821,6422,022,259 Mutual Discovery Fund Series O 32,253,666 28,190,2861,980,809 Templeton Global Smaller Companies Fund Series O 39,929,318 40,329,2786,008,975 Templeton International Stock Fund Series O 127,933,571 99,809,073

631,072,742 573,800,801



NET ASSETS – 100.0% 1,427,618,462







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009







June 30, 2010 December 31, 2009




Mutual Funds $1,422,583,385 $ – $ – $1,422,583,385


Mutual Funds $1,435,886,366 $ – $ – $1,435,886,366



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177

Scotia Partners Moderate Growth Portfolio (Unaudited – Continued)

Scotia Partners Aggressive Growth Portfolio (Unaudited)


June 30,2010

December 31,2009


350,983,959 361,897,125


928,424 379,465

Net Assets $350,055,535 $361,517,660






1,502,114 1,489,952



4,543,161 3,642,500

Net investment income (loss) (3,041,047) (2,152,548)








361,517,660 286,103,009


(11,917,843) 34,760,768




455,718 (59,242)

INCREASE (DECREASE) IN NET ASSETSClass A Units (11,461,720) 34,674,402Class F Units (405) 27,124

(11,462,125) 34,701,526


$350,055,535 $320,804,535


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178



AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 10.1%527,089 Fidelity Canadian Bond Fund Series O 6,832,073 7,083,124

2,148,280 Mackenzie Sentinel Corporate Bond Fund Series O 19,309,190 19,369,325674,728 Scotia Canadian Income Fund Class I 8,663,900 8,829,018

34,805,163 35,281,467

CANADIAN EQUITY FUNDS – 40.8%133,950 AGF Canadian Stock Fund Series O 8,049,458 6,843,519944,090 Dynamic Focus+ Real Estate Fund Series O 5,887,847 5,164,171

2,151,521 Dynamic Focus+ Small Business Fund Series O 22,116,942 24,785,5262,709,922 Dynamic Value Fund of Canada Series O 24,738,819 23,711,8181,527,334 Fidelity True North Fund Series O 43,675,767 44,517,2121,101,391 Scotia Canadian Dividend Fund Class I 44,391,088 37,703,472

148,859,921 142,725,718

FOREIGN EQUITY FUNDS – 48.4%2,601,769 AGF Emerging Markets Fund Series O 25,930,690 28,697,507

213,593 CI Global Small Companies Fund Class I 4,040,354 3,511,4731,576,568 Dynamic American Value Fund Series O 11,331,499 10,279,2242,349,643 Dynamic Global Dividend Value Fund Series O 22,768,037 22,744,5413,984,309 Dynamic Global Value Fund Series O 27,287,772 25,858,163

767,426 Fidelity Global Real Estate Fund Series O 6,162,212 5,318,4953,027,035 Mackenzie Cundill Value Fund Series O 20,026,919 17,077,620

222,736 Mackenzie Universal American Growth Class (Unhedged) Series O 3,521,772 3,501,1474,356,428 Mackenzie Universal International Stock Fund Series O 22,408,391 17,615,215

687,870 Templeton Global Smaller Companies Fund Series O 14,225,566 14,005,0251,262,078 Templeton International Stock Fund Series O 26,914,678 20,963,113

184,617,890 169,571,523



NET ASSETS – 100.0% 350,055,535







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009







June 30, 2010 December 31, 2009




Mutual Funds $347,578,708 $ – $ – $347,578,708


Mutual Funds $358,512,926 $ – $ – $358,512,926



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179

Scotia Partners Aggressive Growth Portfolio (Unaudited – Continued)

Scotia Vision Conservative 2010 Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $36,195,020 $41,715,214Cash 410,777 393,654Accrued investment income 3,156 2,829Subscriptions receivable 1,200 7,530

36,610,153 42,119,227


59,401 23,529

Net Assets $36,550,752 $42,095,698






484,586 588,515

EXPENSESManagement fees (note 5) 311,859 321,098Audit fees 6,617 6,380Independent Review Committee fees 40 46Custodian fees 1,116 –Filing fees 7,604 7,641Legal fees 1,692 1,842Unitholder reporting costs 4,207 4,665Unitholder administration, service fees and GST 33,221 34,413Overdraft charges 80 718


366,436 365,088


Net realized gain (loss) on investments sold (301,019) (1,590,034)Change in unrealized appreciation (depreciation) of investments 12,430 3,366,559


Increase (decrease) in Net Assets from operations $(170,439) $ 1,999,952

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(170,439) $ 1,999,952

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.04) $ 0.43



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (170,439) 1,999,952



Class A Units (5,883,020) (1,931,411)

(5,374,507) (1,334,102)

INCREASE (DECREASE) IN NET ASSETSClass A Units (5,544,946) 665,850



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180



AverageCost ($)

MarketValue ($)

CASH EQUIVALENT FUND – 14.0%512,898 Scotia Money Market Fund Class I 5,128,977 5,128,977

FIXED INCOME FUNDS – 49.6%737,909 Scotia Canadian Bond Index Fund Class I 7,929,047 8,117,077535,466 Scotia Canadian Income Fund Class I 6,986,496 7,006,734354,030 Scotia Global Bond Fund Class I 3,002,174 3,020,338

17,917,717 18,144,149

CANADIAN EQUITY FUNDS – 24.7%40,917 Scotia Canadian Blue Chip Fund Class I 962,509 1,048,219

111,194 Scotia Canadian Dividend Fund Class I 3,745,048 3,806,476199,180 Scotia Canadian Index Fund Class I 3,705,589 3,816,25516,331 Scotia Canadian Small Cap Fund Class I 413,475 340,092

8,826,621 9,011,042

FOREIGN EQUITY FUNDS – 10.7%98,765 Scotia Global Opportunities Fund Class I 862,787 721,090

283,125 Scotia International Index Fund Class I 2,126,611 1,781,845128,510 Scotia International Value Fund Class I 896,023 700,44270,033 Scotia U.S. Index Fund Class I 897,376 707,475

4,782,797 3,910,852



NET ASSETS – 100.0% 36,550,752




Cash Equivalent Fund 14.0 10.8Fixed Income Funds 49.6 48.2Canadian Equity Funds 24.7 26.2Foreign Equity Funds 10.7 13.9



BenchmarkImpact on


Net Assets (%)

June 30, 2010

S&P/TSX Composite Index – 24%,DEX Universe Bond Index – 49%,Morgan Stanley Capital International World Index – 12%,DEX 91-Day T-Bill Index – 15%


BenchmarkImpact on


Net Assets (%)

December 31, 2009





June 30, 2010 December 31, 2009




Mutual Funds $36,195,020 $ – $ – $36,195,020


Mutual Funds $41,715,214 $ – $ – $41,715,214



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181

Scotia Vision Conservative 2010 Portfolio (Unaudited – Continued)

Scotia Vision Aggressive 2010 Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $4,845,119 $5,911,035Cash 86,747 53,827Accrued investment income 240 221Subscriptions receivable – 400

4,932,106 5,965,483

LIABILITIESRedemptions payable – 48,678Accrued expenses 8,333 –

8,333 48,678

Net Assets $4,923,773 $5,916,805


UNITS OUTSTANDINGClass A Units 529,108 626,532




58,430 72,804



54,676 53,695


Net realized gain (loss) on investments sold (51,064) (210,457)Change in unrealized appreciation (depreciation) of investments (25,411) 477,615

Net gain (loss) on investments and transaction costs (76,475) 267,158

Increase (decrease) in Net Assets from operations $(72,721) $ 286,267

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(72,721) $ 286,267



2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 5,916,805 $5,600,355

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (72,721) 286,267



Class A Units (1,036,467) (425,905)

(920,311) (230,977)

INCREASE (DECREASE) IN NET ASSETSClass A Units (993,032) 55,290

NET ASSETS – END OF PERIODClass A Units $ 4,923,773 $5,655,645


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182



AverageCost ($)

MarketValue ($)

CASH EQUIVALENT FUND – 8.0%39,146 Scotia Money Market Fund Class I 391,455 391,455

FIXED INCOME FUNDS – 45.3%71,447 Scotia Canadian Bond Index Fund Class I 764,196 785,92875,163 Scotia Canadian Income Fund Class I 972,056 983,52453,809 Scotia Global Bond Fund Class I 455,082 459,063

2,191,334 2,228,515

CANADIAN EQUITY FUNDS – 27.7%9,131 Scotia Canadian Blue Chip Fund Class I 227,082 233,927

13,644 Scotia Canadian Dividend Fund Class I 470,378 467,07424,706 Scotia Canadian Index Fund Class I 465,771 473,353

9,113 Scotia Canadian Small Cap Fund Class I 210,430 189,785

1,373,661 1,364,139

FOREIGN EQUITY FUNDS – 17.4%19,667 Scotia Global Opportunities Fund Class I 173,481 143,59053,508 Scotia International Index Fund Class I 395,691 336,75534,732 Scotia International Value Fund Class I 269,436 189,30718,943 Scotia U.S. Index Fund Class I 229,330 191,358

1,067,938 861,010



NET ASSETS – 100.0% 4,923,773





S U P P L E M E N TA R Y S C H E D U L E SAs June 30, 2010 and December 31, 2009


BenchmarkImpact on


Net Assets (%)

June 30, 2010


Blended Benchmark Impact(product of all the benchmarks above) 945,364 19.2

BenchmarkImpact on


Net Assets (%)

December 31, 2009





June 30, 2010 December 31, 2009




Mutual Funds $4,845,119 $ – $ – $4,845,119


Mutual Funds $5,911,035 $ – $ – $5,911,035



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183

Scotia Vision Aggressive 2010 Portfolio (Unaudited – Continued)



June 30,2010

December 31,2009


66,827,524 70,570,198


128,221 6,492

Net Assets $66,699,303 $70,563,706






822,158 914,511



657,125 609,736


Net realized gain (loss) on investments sold (178,188) (2,880,305)Change in unrealized appreciation (depreciation) of investments (754,096) 6,369,312










Class A Units – (137)Payments on redemption

Class A Units (5,513,369) (3,567,882)

(3,097,152) (1,810,058)

INCREASE (DECREASE) IN NET ASSETSClass A Units (3,864,403) 1,983,724



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184



AverageCost ($)

MarketValue ($)


FIXED INCOME FUNDS – 47.8%1,166,321 Scotia Canadian Bond Index Fund Class I 12,553,572 12,829,646

980,757 Scotia Canadian Income Fund Class I 12,714,984 12,833,501729,350 Scotia Global Bond Fund Class I 6,177,937 6,222,300

31,446,493 31,885,447

CANADIAN EQUITY FUNDS – 27.8%74,982 Scotia Canadian Blue Chip Fund Class I 1,802,779 1,920,896

224,523 Scotia Canadian Dividend Fund Class I 7,585,613 7,686,00322,744 Scotia Canadian Growth Fund Class I 1,332,649 1,273,224

298,082 Scotia Canadian Index Fund Class I 5,598,994 5,711,18792,394 Scotia Canadian Small Cap Fund Class I 2,299,630 1,924,099

18,619,665 18,515,409

FOREIGN EQUITY FUNDS – 15.6%266,514 Scotia Global Opportunities Fund Class I 2,356,488 1,945,844118,731 Scotia Global Small Cap Fund Class I 1,010,633 670,868621,573 Scotia International Index Fund Class I 4,619,704 3,911,870352,938 Scotia International Value Fund Class I 2,802,064 1,923,688193,117 Scotia U.S. Index Fund Class I 2,486,529 1,950,872

13,275,418 10,403,142



NET ASSETS – 100.0% 66,699,303







BenchmarkImpact on


Net Assets (%)

June 30, 2010



BenchmarkImpact on


Net Assets (%)

December 31, 2009





June 30, 2010 December 31, 2009




Mutual Funds $66,063,029 $ – $ – $66,063,029


Mutual Funds $69,835,307 $ – $ – $69,835,307



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185




June 30,2010

December 31,2009

ASSETSInvestments at market value $18,651,631 $21,635,080Cash 173,565 204,242Accrued investment income 355 235Receivable for securities sold 283,993 –Subscriptions receivable 451 1,040

19,109,995 21,840,597

LIABILITIESRedemptions payable 99,788 –Accrued expenses 34,343 –

134,131 –

Net Assets $18,975,864 $21,840,597






205,947 238,132



218,074 208,947

Net investment income (loss) (12,127) 29,185











Class A Units (3,108,781) (1,322,279)

(2,474,561) (642,073)

INCREASE (DECREASE) IN NET ASSETSClass A Units (2,864,733) 735,433



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186



AverageCost ($)

MarketValue ($)

CASH EQUIVALENT FUND – 3.0%57,941 Scotia Money Market Fund Class I 579,412 579,412

FIXED INCOME FUNDS - 41.9%256,247 Scotia Canadian Bond Index Fund Class I 2,757,735 2,818,742274,854 Scotia Canadian Income Fund Class I 3,555,687 3,596,545179,109 Scotia Global Bond Fund Class I 1,511,108 1,528,032

7,824,530 7,943,319

CANADIAN EQUITY FUNDS – 30.7%35,866 Scotia Canadian Blue Chip Fund Class I 873,267 918,82751,648 Scotia Canadian Dividend Fund Class I 1,772,756 1,768,058

6,564 Scotia Canadian Growth Fund Class I 400,595 367,48086,585 Scotia Canadian Index Fund Class I 1,667,474 1,658,95953,239 Scotia Canadian Small Cap Fund Class I 1,168,414 1,108,696

5,882,506 5,822,020

FOREIGN EQUITY FUNDS – 22.7%77,097 Scotia Global Opportunities Fund Class I 644,017 562,89133,215 Scotia Global Small Cap Fund Class I 271,164 187,674

209,770 Scotia International Index Fund Class I 1,590,773 1,320,188136,179 Scotia International Value Fund Class I 1,069,721 742,24413,904 Scotia Latin American Fund Class I 341,399 368,40874,188 Scotia U.S. Index Fund Class I 903,733 749,44555,149 Scotia U.S. Value Fund Class I 446,820 376,030

5,267,627 4,306,880



NET ASSETS – 100.0% 18,975,864







BenchmarkImpact on


Net Assets (%)

June 30, 2010



BenchmarkImpact on


Net Assets (%)

December 31, 2009



Liquidity risk (note 3)The table below summarizes a maturity analysis cash flows associated with thematurities of the Portfolio’s financial liabilities:


June 30, 2010 December 31, 2009




Mutual Funds $18,651,631 $ – $ – $18,651,631


Mutual Funds $21,635,080 $ – $ – $21,635,080



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187




June 30,2010

December 31,2009


68,655,202 77,281,414

LIABILITIESDistributions payable – 59Redemptions payable 39,018 12,321Accrued expenses 115,500 –

154,518 12,380

Net Assets $68,500,684 $77,269,034






810,138 888,849



735,917 680,704


Net realized gain (loss) on investments sold (157,235) (2,828,805)Change in unrealized appreciation (depreciation) of investments (1,049,727) 7,369,487



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(1,132,741) $ 4,748,827



2010 2009NET ASSETS – BEGINNING OF PERIODClass A Units $ 77,269,034 $68,633,721

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (1,132,741) 4,748,827



Class A Units (10,330,602) (3,193,683)

(7,635,609) (49,935)


NET ASSETS – END OF PERIODClass A Units $ 68,500,684 $73,332,613


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188



AverageCost ($)

MarketValue ($)


FIXED INCOME FUNDS – 44.0%1,205,050 Scotia Canadian Bond Index Fund Class I 12,951,571 13,255,670

851,703 Scotia Canadian Income Fund Class I 11,021,567 11,144,796672,851 Scotia Global Bond Fund Class I 5,686,827 5,740,291

29,659,965 30,140,757




20,690,633 20,401,933

FOREIGN EQUITY FUNDS – 19.6%275,905 Scotia Global Opportunities Fund Class I 2,449,742 2,014,408236,368 Scotia Global Small Cap Fund Class I 1,879,017 1,335,551642,300 Scotia International Index Fund Class I 4,922,217 4,042,317369,135 Scotia International Value Fund Class I 2,942,877 2,011,96826,099 Scotia Latin American Fund Class I 690,294 691,53261,021 Scotia Pacific Rim Fund Class I 627,685 673,569

195,818 Scotia U.S. Index Fund Class I 2,534,939 1,978,150100,088 Scotia U.S. Value Fund Class I 814,499 682,451

16,861,270 13,429,946



NET ASSETS – 100.0% 68,500,684







BenchmarkImpact on


Net Assets (%)

June 30, 2010



BenchmarkImpact on


Net Assets (%)

December 31, 2009





June 30, 2010 December 31, 2009




Mutual Funds $68,101,493 $ – $ – $68,101,493


Mutual Funds $76,593,967 $ – $ – $76,593,967



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189




June 30,2010

December 31,2009


31,123,381 33,602,136


66,350 –

Net Assets $31,057,031 $33,602,136






301,386 309,583

EXPENSESManagement fees (note 5) 301,800 262,031Audit fees 6,617 6,604Independent Review Committee fees 41 43Custodian fees 1,080 –Filing fees 7,496 7,484Legal fees 1,694 1,835Unitholder reporting costs 4,223 4,598Unitholder administration, service fees and GST 32,491 30,924Overdraft charges – 148


355,442 306,440












Class A Units (3,141,966) (1,365,865)

(1,702,372) (233,088)




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190



AverageCost ($)

MarketValue ($)


11,585,348 11,774,207

CANADIAN EQUITY FUNDS – 34.7%58,133 Scotia Canadian Blue Chip Fund Class I 1,434,610 1,489,24795,936 Scotia Canadian Dividend Fund Class I 3,266,063 3,284,12910,959 Scotia Canadian Growth Fund Class I 674,332 613,512


10,901,169 10,765,827

FOREIGN EQUITY FUNDS – 26.5%126,946 Scotia Global Opportunities Fund Class I 1,078,404 926,845107,776 Scotia Global Small Cap Fund Class I 915,818 608,965340,414 Scotia International Index Fund Class I 2,723,322 2,142,398278,321 Scotia International Value Fund Class I 2,189,341 1,516,98722,577 Scotia Latin American Fund Class I 540,405 598,199

120,419 Scotia U.S. Index Fund Class I 1,464,937 1,216,471180,535 Scotia U.S. Value Fund Class I 1,364,549 1,230,981

10,276,776 8,240,846



NET ASSETS – 100.0% 31,057,031







BenchmarkImpact on


Net Assets (%)

June 30, 2010



BenchmarkImpact on


Net Assets (%)

December 31, 2009



Liquidity risk (note 3)The table below summarizes a maturity analysis cash flows associated with thematurities of the Portfolio’s financial liabilities:


June 30, 2010 December 31, 2009




Mutual Funds $30,780,880 $ – $ – $30,780,880


Mutual Funds $33,253,519 $ – $ – $33,253,519



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191




June 30,2010

December 31,2009


35,203,306 39,177,093


124,034 9,436

Net Assets $35,079,272 $39,167,657






306,401 325,231



430,976 383,738





INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(1,209,038) $ 2,941,516







Class A Units (4,657,123) (1,668,760)

(2,879,347) 228,366




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192



AverageCost ($)

MarketValue ($)


10,970,773 11,149,182




13,225,217 12,859,973

FOREIGN EQUITY FUNDS – 30.4%139,360 Scotia Global Opportunities Fund Class I 1,246,709 1,017,481186,282 Scotia Global Small Cap Fund Class I 1,670,814 1,052,550494,840 Scotia International Index Fund Class I 3,839,543 3,114,276255,169 Scotia International Value Fund Class I 2,046,424 1,390,799

26,019 Scotia Latin American Fund Class I 664,551 689,39863,225 Scotia Pacific Rim Fund Class I 759,968 697,89299,528 Scotia U.S. Index Fund Class I 1,177,492 1,005,428

253,684 Scotia U.S. Value Fund Class I 2,066,624 1,729,746

13,472,125 10,697,570



NET ASSETS – 100.0% 35,079,272







BenchmarkImpact on


Net Assets (%)

June 30, 2010

S&P/TSX Composite Index – 35%,DEX Universe Bond Index – 33%,Morgan Stanley Capital International World Index – 32%,


BenchmarkImpact on


Net Assets (%)

December 31, 2009





June 30, 2010 December 31, 2009




Mutual Funds $34,706,725 $ – $ – $34,706,725


Mutual Funds $38,830,501 $ – $ – $38,830,501



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193




June 30,2010

December 31,2009


21,060,467 23,107,764


56,868 164,977

Net Assets $21,003,599 $22,942,787






123,535 137,089



273,410 222,311


Net realized gain (loss) on investments sold (125,764) (827,452)Change in unrealized appreciation (depreciation) of investments (756,523) 2,728,420



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(1,032,162) $1,815,746







Class A Units (2,116,455) (914,584)

(907,026) 497,671




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194



AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 19.5%136,407 Scotia Canadian Bond Index Fund Class I 1,463,948 1,500,494147,079 Scotia Canadian Income Fund Class I 1,893,744 1,924,57377,812 Scotia Global Bond Fund Class I 656,069 663,841

4,013,761 4,088,908

CANADIAN EQUITY FUNDS – 41.0%39,939 Scotia Canadian Blue Chip Fund Class I 1,003,418 1,023,17171,395 Scotia Canadian Dividend Fund Class I 2,480,661 2,444,05114,719 Scotia Canadian Growth Fund Class I 878,097 823,992


8,921,682 8,603,586

FOREIGN EQUITY FUNDS – 38.5%60,039 Scotia European Fund Class I 668,570 422,556

112,416 Scotia Global Opportunities Fund Class I 981,366 820,763148,960 Scotia Global Small Cap Fund Class I 1,138,164 841,669331,450 Scotia International Index Fund Class I 2,600,315 2,085,983112,936 Scotia International Value Fund Class I 917,987 615,55823,515 Scotia Latin American Fund Class I 581,331 623,06338,410 Scotia Pacific Rim Fund Class I 484,302 423,984

121,435 Scotia U.S. Index Fund Class I 1,375,307 1,226,740150,723 Scotia U.S. Value Fund Class I 1,178,164 1,027,703

9,925,506 8,088,019



NET ASSETS – 100.0% 21,003,599







BenchmarkImpact on


Net Assets (%)

June 30, 2010

S&P/TSX Composite Index – 40%,DEX Universe Bond Index – 21%,Morgan Stanley Capital International World Index – 39%,


BenchmarkImpact on


Net Assets (%)

December 31, 2009





June 30, 2010 December 31, 2009




Mutual Funds $20,780,513 $ – $ – $20,780,513


Mutual Funds $22,859,290 $ – $ – $22,859,290



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195


Scotia INNOVA Income Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $304,382,427 $146,474,846Cash 6,340,339 2,183,973Subscriptions receivable 2,182,904 961,562

312,905,670 149,620,381

LIABILITIESDistributions payable 43,020 21,887Redemptions payable 336,167 20,000Accrued expenses 422,214 –

801,401 41,887

Net Assets $312,104,269 $149,578,494

NET ASSETS PER CLASSClass A Units $288,278,660 $149,578,494Class T Units $ 23,825,609 $ –

UNITS OUTSTANDINGClass A Units 25,591,423 13,472,078Class T Units 1,600,286 –

NET ASSETS PER UNITClass A Units $ 11.26 $ 11.10Class T Units $ 14.89 $ –


2010 2009**INVESTMENT INCOMEInterest $4,045,097 $ 227,639

EXPENSESManagement fees (note 5) 1,879,608 82,822Audit fees 6,823 4,970Independent Review Committee fees 62 2Custodian fees 3,665 1,673Filing fees 8,950 2Legal fees 1,745 1,606Unitholder reporting costs 4,573 3,387Unitholder administration, service fees and GST 112,057 15,596

2,017,483 110,058Absorbed expenses – (15,738)

2,017,483 94,320


Net realized gain (loss) on investments sold 18,152 21,153Change in unrealized appreciation (depreciation) of investments 712,248 999,160

Net gain (loss) on investments and transaction costs 730,400 1,020,313


INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $2,686,778 $1,153,632Class T Units* $ 71,236 $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ 0.13 $ 1.01Class T Units* $ 0.08 $ –


2010 2009**NET ASSETS – BEGINNING OF PERIODClass A Units $149,578,494 $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units 2,686,778 1,153,632Class T Units* 71,236 –

2,758,014 1,153,632


Class T Units* (213,970) –


Class A Units 156,632,318 33,289,718Class T Units* 26,473,994 –

Reinvested distributionsClass T Units* 72,107 –

Payments on redemptionClass A Units (20,618,930) (891,268)Class T Units* (2,577,758) –

159,981,731 32,398,450

INCREASE (DECREASE) IN NET ASSETSClass A Units 138,700,166 33,552,082Class T Units* 23,825,609 –

162,525,775 33,552,082

NET ASSETS – END OF PERIODClass A Units 288,278,660 33,552,082Class T Units* 23,825,609 –

$312,104,269 $33,552,082

* Start date January 11, 2010.

** For the period since Portfolio start date January 19, 2009.


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AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 74.2%3,521,484 Pinnacle American Core-Plus Bond Fund Class I 29,103,465 30,636,911

12,988,687 Scotia Canadian Income Fund Class I 166,182,632 169,960,8712,943,335 Scotia Short-Mid Government Bond Fund Class I 30,851,396 31,014,220

226,137,493 231,612,002

CANADIAN EQUITY FUNDS – 11.2%332,648 Pinnacle Canadian Small Cap Equity Fund Class I 5,620,184 6,017,607

2,805,370 Scotia Canadian Equity Fund Class I 29,177,274 28,843,976

34,797,458 34,861,583

FOREIGN EQUITY FUNDS – 12.1%611,916 Pinnacle American Value Equity Fund Class I 5,549,814 5,580,677509,122 Pinnacle Global Equity Fund Class I 5,768,580 5,656,345260,267 Pinnacle Global Real Estate Securities Fund Class I 2,710,945 2,766,640

2,185,011 Pinnacle International Equity Fund Class I 19,133,789 18,201,138814,026 Scotia U.S. Equity Fund Class I 6,095,994 5,704,042

39,259,122 37,908,842



NET ASSETS – 100.0% 312,104,269







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009


DEX Universe Bond Index – 75%,S&P/TSX Composite Total Return

Index – 12%,Morgan Stanley Capital





June 30, 2010 December 31, 2009




Mutual Funds $304,382,427 $ – $ – $304,382,427


Mutual Funds $146,474,846 $ – $ – $146,474,846



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197

Scotia INNOVA Income Portfolio (Unaudited – Continued)

Scotia INNOVA Balanced Income Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $302,445,384 $142,395,236Cash 6,301,919 1,457,199Subscriptions receivable 1,325,802 913,039

310,073,105 144,765,474


1,041,546 16,339

Net Assets $309,031,559 $144,749,135





2010 2009**INVESTMENT INCOMEInterest $ 3,195,486 $ 218,242

EXPENSESManagement fees (note 5) 1,959,386 107,034Audit fees 7,422 4,970Independent Review Committee fees 65 2Custodian fees 3,891 1,842Filing fees 6,657 2Legal fees 1,751 1,607Unitholder reporting costs 4,615 3,397Unitholder administration, service fees and GST 116,298 16,845Overdraft charges – 216


2,100,085 121,569


Net realized gain (loss) on investments sold 23,784 (16,527)Change in unrealized appreciation (depreciation) of investments (2,174,911) 1,477,722



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $ (850,272) $1,557,868Class T Units* $ (205,454) $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.04) $ 1.15Class T Units* $ (0.22) $ –



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (850,272) 1,557,868Class T Units* (205,454) –

(1,055,726) 1,557,868






Payments on redemptionClass A Units (12,908,621) (1,558,236)Class T Units* (1,277,322) –

165,642,555 37,060,962


164,282,424 38,618,830


$309,031,559 $38,618,830




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198



AverageCost ($)

MarketValue ($)


11,119,520 Scotia Canadian Income Fund Class I 142,162,101 145,502,2501,473,285 Scotia Short-Mid Government Bond Fund Class I 15,441,862 15,524,154

180,929,071 185,612,616



52,025,879 52,169,463

FOREIGN EQUITY FUNDS – 20.9%1,129,122 Pinnacle American Value Equity Fund Class I 10,230,954 10,297,5911,058,206 Pinnacle Global Equity Fund Class I 11,966,446 11,756,669

530,084 Pinnacle Global Real Estate Securities Fund Class I 5,476,967 5,634,7953,068,028 Pinnacle International Equity Fund Class I 26,733,717 25,556,6741,629,406 Scotia U.S. Equity Fund Class I 12,195,542 11,417,576

66,603,626 64,663,305



NET ASSETS – 100.0% 309,031,559







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009








June 30, 2010 December 31, 2009




Mutual Funds $302,445,384 $ – $ – $302,445,384


Mutual Funds $142,395,236 $ – $ – $142,395,236



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Scotia INNOVA Balanced Income Portfolio (Unaudited – Continued)

Scotia INNOVA Balanced Growth Portfolio (Unaudited)


June 30,2010

December 31,2009

ASSETSInvestments at market value $394,017,460 $194,457,717Cash 8,349,012 2,267,042Subscriptions receivable 3,611,111 1,684,743

405,977,583 198,409,502


1,019,531 12,403

Net Assets $404,958,052 $198,397,099





2010 2009**INVESTMENT INCOMEInterest $ 2,855,840 $ 234,637



2,941,676 202,012


Net realized gain (loss) on investments sold 44,867 33,960Change in unrealized appreciation (depreciation) of investments (8,037,867) 3,172,430



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(7,674,946) $3,239,015Class T Units* $ (403,890) $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS PER UNITClass A Units $ (0.30) $ 1.52Class T Units* $ (0.67) $ –



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (7,674,946) 3,239,015Class T Units* (403,890) –

(8,078,836) 3,239,015






Payments on redemptionClass A Units (12,355,537) (528,028)Class T Units* (1,403,688) –

214,889,907 56,742,139


206,560,953 59,981,154


$404,958,052 $59,981,154




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AverageCost ($)

MarketValue ($)


10,560,324 Scotia Canadian Income Fund Class I 134,888,025 138,185,013

157,978,278 162,567,187



103,397,942 104,036,956



131,094,893 127,413,317



NET ASSETS – 100.0% 404,958,052







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009








June 30, 2010 December 31, 2009




Mutual Funds $394,017,460 $ – $ – $394,017,460


Mutual Funds $194,457,717 $ – $ – $194,457,717



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Scotia INNOVA Balanced Growth Portfolio (Unaudited – Continued)

Scotia INNOVA Growth Portfolio (Unaudited)


June 30,2010

December 31,2009


195,926,818 107,641,115

LIABILITIESDistributions payable – 2,422Redemptions payable 74,198 –Accrued expenses 326,607 –

400,805 2,422

Net Assets $195,526,013 $107,638,693





2010 2009*INVESTMENT INCOMEInterest $ 908,604 $ 93,585



1,616,140 137,517


Net realized gain (loss) on investments sold 58,371 18,580Change in unrealized appreciation (depreciation) of investments (6,051,875) 2,364,219



INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(6,701,040) $2,338,867



2010 2009*NET ASSETS – BEGINNING OF PERIODClass A Units $107,638,693 $ –




Class A Units (7,883,328) (315,524)

94,588,360 36,481,587



*For the period since Portfolio start date January 19, 2009.


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AverageCost ($)

MarketValue ($)

FIXED INCOME FUNDS – 25.4%900,886 Pinnacle American Core-Plus Bond Fund Class I 7,359,451 7,837,705

3,198,875 Scotia Canadian Income Fund Class I 40,781,433 41,858,243

48,140,884 49,695,948



62,172,882 63,204,880



80,825,349 79,006,428



NET ASSETS – 100.0% 195,526,013







BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009



Index – 33.5%,Morgan Stanley Capital

International World Index – 41.5%

Blended Benchmark Rate(product of all the benchmarksabove) 29,719,954 14,854,140 15.2 13.8



June 30, 2010 December 31, 2009




Mutual Funds $191,907,256 $ – $ – $191,907,256


Mutual Funds $105,129,654 $ – $ – $105,129,654



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Scotia INNOVA Growth Portfolio (Unaudited – Continued)

Scotia INNOVA Maximum Growth Portfolio (Unaudited)


June 30,2010

December 31,2009


42,099,445 24,151,457


92,938 –

Net Assets $42,006,507 $24,151,457





2010 2009*INVESTMENT INCOMEInterest $ – $ 214

EXPENSESManagement fees (note 5) 347,107 35,671Audit fees 6,617 4,970Independent Review Committee fees 11 1Custodian fees 2,205 761Filing fees 7,310 1Legal fees 1,627 1,603Unitholder reporting costs 3,727 3,365Unitholder administration, service fees and GST 31,036 13,094


382,589 39,930


Net realized gain (loss) on investments sold 42,465 14,923Change in unrealized appreciation (depreciation) of investments (2,090,470) 761,404

Net gain (loss) on investments and transaction costs (2,048,005) 776,327

Increase (decrease) in Net Assets from operations $(2,430,594) $736,611

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units $(2,430,594) $736,611



2010 2009*NET ASSETS – BEGINNING OF PERIODClass A Units $24,151,457 $ –

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONSClass A Units (2,430,594) 736,611



Class A Units (2,452,555) (221,166)

20,285,644 8,910,046



* For the period since Portfolio start date January 19, 2009


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AverageCost ($)

MarketValue ($)



18,375,618 18,721,616

FOREIGN EQUITY FUNDS – 54.2%406,714 Pinnacle American Value Equity Fund Class I 3,627,635 3,709,228373,626 Pinnacle Global Equity Fund Class I 4,166,613 4,150,985156,729 Pinnacle Global Real Estate Securities Fund Class I 1,585,523 1,666,028

1,149,724 Pinnacle International Equity Fund Class I 9,964,022 9,577,197524,031 Scotia U.S. Equity Fund Class I 3,918,101 3,671,991

23,261,894 22,775,429



NET ASSETS – 100.0% 42,006,507




Canadian Equity Funds 44.6 45.4Foreign Equity Funds 54.2 53.4



BenchmarkJune 30,

2010December 31,

2009June 30,

2010December 31,

2009

Impact on Net Assets ($)Impact on Net Assets

(%)

S&P/TSX Composite Total ReturnIndex – 45.5%,

Morgan Stanley Capital InternationalWorld Index – 54.5%

Blended Benchmark Impact(product of all the benchmarks above) 6,553,015 3,477,810 15.6 14.4



June 30, 2010 December 31, 2009




Mutual Funds $41,497,045 $ – $ – $41,497,045


Mutual Funds $23,873,436 $ – $ – $23,873,436



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Scotia INNOVA Maximum Growth Portfolio (Unaudited – Continued)

Notes to Financial Statements

June 30, 2010

1. The Funds

All of the funds presented in these financial statements(individually a “Fund” and collectively, the “Funds”) areopen-ended mutual fund trusts established under the lawsof the Province of Ontario pursuant to a master declara-tion of trust (“Declaration of Trust”) dated as at Febru-ary 14, 2005, as amended and/or restated from time totime. The inception date for each Fund is as follows:

Scotia T-Bill Fund October 3, 1991

Scotia Premium T-Bill Fund July 10, 1992

Scotia Money Market Fund August 30, 1990

Scotia U.S. $ Money Market Fund September 3, 1996

Scotia Short-Mid Government Bond Fund September 30, 2007

Scotia Mortgage Income Fund September 22, 1992

Scotia Bond Fund August 17, 2009

Scotia Canadian Income Fund November 1, 1957

Scotia Canadian Corporate Bond Fund October 30, 2003

Scotia U.S. $ Bond Fund November 27, 1991

Scotia Global Bond Fund July 4, 1994

Scotia Advantaged Income Fund September 30, 2007

Scotia Diversified Monthly Income Fund June 10, 2005

Scotia Canadian Balanced Fund May 7, 1990

Scotia Canadian Tactical Asset Allocation Fund February 20,1961

Scotia Canadian Dividend Fund October 28, 1992

Scotia Canadian Blue Chip Fund December 31, 1986

Scotia Canadian Equity Fund June 10, 2005

Scotia Canadian Growth Fund February 20, 1961

Scotia Canadian Small Cap Fund October 28, 1992

Scotia Resource Fund July 6, 1993

Scotia North American Equity Fund June 10, 2005

Scotia Cyclical Opportunities Fund November 3, 2008

Scotia U.S. Equity Fund June 10, 2005

Scotia U.S. Growth Fund December 31, 1986

Scotia U.S. Value Fund November 30, 2000

Scotia International Equity Fund June 10, 2005

Scotia International Value Fund November 30, 2000

Scotia European Fund September 3, 1996

Scotia Pacific Rim Fund August 18, 1994

Scotia Latin American Fund August 18, 1994

Scotia Global Growth Fund February 20, 1961

Scotia Global Small Cap Fund November 30, 2000

Scotia Global Opportunities Fund November 30, 2000

Scotia Global Climate Change Fund January 25, 2008

Scotia Canadian Bond Index Fund September 20, 1999

Scotia Canadian Index Fund December 13, 1996

Scotia U.S. Index Fund December 13, 1996

Scotia CanAm» Index Fund July 9, 1993

Scotia Nasdaq Index Fund November 30, 2000

Scotia International Index Fund September 20, 1999

Scotia Selected Income & Modest Growth Portfolio April 22, 2003

Scotia Selected Balanced Income & Growth Portfolio April 22, 2003

Scotia Selected Moderate Growth Portfolio April 22, 2003

Scotia Selected Aggressive Growth Portfolio April 22, 2003

Scotia Partners Income & Modest Growth Portfolio November 29, 2002

Scotia Partners Balanced Income & Growth Portfolio November 29, 2002

Scotia Partners Moderate Growth Portfolio November 29, 2002

Scotia Partners Aggressive Growth Portfolio November 29, 2002

Scotia Vision Conservative 2010 Portfolio June 10, 2005

Scotia Vision Aggressive 2010 Portfolio June 10, 2005







Scotia INNOVA Income Portfolio January 13, 2009

Scotia INNOVA Balanced Income Portfolio January 13, 2009

Scotia INNOVA Balanced Growth Portfolio January 13, 2009

Scotia INNOVA Growth Portfolio January 13, 2009

Scotia INNOVA Maximum Growth Portfolio January 13, 2009

The Statement of Investment Portfolio of each of theFunds is as at June 30, 2010. The Statements of NetAssets are as at June 30, 2010 and December 31, 2009,and the Statements of Operations and Statements ofChanges in Net Assets are for six-month periods endedJune 30, 2010 and 2009, except for Funds or classesstarted during either year, in which case the informationpresented is for the period from the Fund inception date(as noted above) or class start date, respectively, toJune 30, 2010 or 2009, as applicable.

The manager and trustee of the Funds is Scotia AssetManagement L.P. (“SAM” or the “Manager”).

2. Summary of significant accounting policies

These financial statements have been prepared in accor-dance with Canadian generally accepted accounting princi-ples (“GAAP”). In applying GAAP, the Manager may makeestimates and assumptions that affect the reportedamounts in the financial statements. Actual results maydiffer from such estimates. The significant accountingpolicies followed by the Funds for the periods endedJune 30, 2010 and 2009 are summarized below.

(a) Financial instrument disclosures

(i) Financial instrument disclosures include a threelevel fair value hierarchy which provides informa-tion about the relative observability of inputs tofair value measurement of financial assets andliabilities. The levels are defined as follows:

• Level 1: Fair value is based on quoted prices inactive markets for identical assets or liabilities;

• Level 2: Fair value is based on inputs other thanquoted prices included in Level 1 that areobservable for the assets or liabilities, eitherdirectly or indirectly. This is inclusive of bondsand debentures that are based on multi-dealer

206

pricing, short-term notes carried at amortizedcost, foreign equity securities in markets closingbefore 4:00 pm Eastern time and securities notactively traded and considered illiquid; and

• Level 3: Fair value is based on non-observableinputs that are not supported by market data forthe assets or liabilities.

(c) Valuation of investments

The fair value of investments as at the financialreporting period end is determined as follows:

(i) In accordance with Accounting Guideline 18,“Investment Companies”, investments are deemedto be categorized as held for trading and arerequired to be recorded at a fair value as definedin CICA Handbook Section 3855, “FinancialInstruments – Recognition and Measurement”.Investments that are traded in an active marketon a recognized public stock exchange and over-the-counter markets, on which the investmentsare traded, are valued at their bid prices forinvestments held and ask prices for investmentssold short. Securities with no available bid, or aquoted value determined by the Manager to beinaccurate or unreliable, are valued in such amanner as in the opinion of the Manager mostaccurately reflects the asset’s fair value. Theapplication of this section impacts the valuationand disclosure of the net assets of an investmentfund for financial reporting purposes (“NetAssets”). The value used to determine the Funds’daily price for purchase and redemption of units(“Pricing NAV” or “Net Asset Value”) is notaffected by this accounting policy. A reconcilia-tion of Net Asset Value and Net Assets of eachFund is provided in Note 11.

(ii) Short-term debt instruments are carried at amor-tized cost, which in the opinion of the Manager,approximates fair value.

(iii) Mortgages are valued at their fair value using theprevailing rate of return on new mortgages ofsimilar type and term.

(iv) Investments in underlying funds are valued basedon the Net Asset Value per unit provided by theunderlying fund’s manager at the end of eachvaluation day.

(v) Realized gains or losses on foreign exchangeforward contracts would arise as a result of theclosing of a position on the settlement date. Thenet realized gain or loss is reported as “Netrealized gain (loss) on currency forwards” in theStatement of Operations. Open foreign exchange

forward contracts are valued at the gain or lossthat would arise as a result of closing the positionon the valuation date. The unrealized gain or loss,for the period is reflected in the Statement ofOperations as “Change in unrealized appreciation(depreciation) of currency forwards”.

(vi) Unlisted warrants are valued using the Black-Scholes option valuation model. The model alsofactors in the time value of money and the volatil-ity inputs significant to such valuation.

(vii) Futures contracts are valued at their bid pricesfor financial reporting purposes at the close ofbusiness on each valuation date. Any differencebetween the settlement value at the close ofbusiness on the current valuation date and thatof the previous valuation date is settled into cashdaily and recorded in the Statements of Opera-tions as “Interest”. Amounts receivable (payable)from (to) settlement of futures contracts arereflected in the Statement of Net Assets as“Receivable for (Payable for) futures contracts”.

(viii)Options are valued at their bid price for longpositions and their ask price for short positions asreported by the principal exchange or over-the-counter market on which the contract is traded.

(ix) Financial assets and liabilities other than invest-ment securities are valued at cost or amortizedcost. These balances are short-term in nature;therefore, their carrying values approximate fairvalue.

(d) Investment transactions and income recognition

Investment transactions are accounted for on a tradedate basis. Transaction costs directly attributable tothe acquisition or disposal of an investment areexpensed and are included in “Transaction costs” inthe Statement of Operations. The investment cost of asecurity represents the amount paid and is determinedon an average cost basis excluding transaction costs.

Dividend income is recognized on the ex-dividend dateand interest is recognized on an accrual basis.

Realized gain or loss on the sale of short-term debtinstruments are recorded as an adjustment to interestincome.

Income, realized gain (loss) and unrealized gain (loss)are allocated among the classes on a pro rata basis.

207

(e) Foreign currency conversion

Amounts denominated in foreign currencies are con-verted into Canadian dollars as follows:

(i) market value of investments and other assets andliabilities at the rates of exchange prevailing as atthe valuation date; and

(ii) purchase and sale of investments and investmentincome at the rates of exchange prevailing on therespective dates of such transactions.

This does not apply to Scotia U.S. $ Money MarketFund and Scotia U.S. $ Bond Fund which are denom-inated in U.S. dollars.

(f) Foreign exchange

Foreign exchange gain (loss) on purchases and salesof foreign currencies are included in “Net realized gain(loss) on foreign exchange” in the Statement ofOperations.

This does not apply to Scotia U.S. $ Money MarketFund and Scotia U.S. $ Bond Fund which are denom-inated in U.S. dollars.

(g) Securities lending

Some of the Funds may enter into securities lendingtransactions. These transactions involve the temporaryexchange of securities for collateral with a commit-ment to return the same securities to the Fund on afuture date. The income earned from these securitieslending transactions is recorded in the Statement ofOperations. The market value of the securities lentand collateral held is determined on a daily basis. Thesecurities lending arrangement can be terminated bythe borrower, the securities lending agent or the Fundat any time.

3. Discussion of Financial Instrument Risk

Each Fund’s investment activities expose it to a variety offinancial risks: market risk (including interest rate risk,currency risk, and other price risk), credit risk and liquid-ity risk. The Fund’s investment practice includes portfoliomonitoring to ensure compliance with stated investmentguidelines. The Manager seeks to minimize potentialadverse effects of risks on the Fund’s performance byemploying and overseeing professional and experiencedportfolio advisors that regularly monitor the Fund’s securi-ties and financial market developments. The risks aremeasured using a method that reflects the expectedimpact on the results and net assets attributable to unit-holders of the Funds from reasonably possible changes inthe relevant risk variables.

Some Funds invest in underlying funds. These Funds areindirectly exposed to market risk, and credit risk in theevent that the underlying funds invest in financial instru-ments that are subject to those risks.

A Fund’s exposure to market risk, credit risk and liquidityrisk, where applicable, is disclosed in the respective Fund’sSupplementary Schedules.

a) Market Risk

i) Interest rate risk

Interest rate risk arises from the possibility that changesin interest rates will affect the future cash flows or the fairvalues of interest-bearing financial instruments. EachFund’s exposure to interest rate risk is concentrated in itsinvestments in debt securities (such as bonds and deben-tures) and interest rate derivative instruments, if any.Short-term investments and other assets and liabilities areshort-term in nature and/or non-interest bearing and arenot subject to a significant amount of interest rate risk dueto fluctuations in the prevailing levels of market interestrates.

ii) Currency risk

Currency risk is the risk that the value of investments willfluctuate due to changes in the foreign exchange rates ofthose currencies in relation to the Fund’s functional cur-rency, which is generally the Canadian dollar except forScotia U.S. $ Money Market Fund and Scotia U.S. $ BondFund. Other financial assets (including dividends andinterest receivable and receivable for investments sold)and financial liabilities that are denominated in foreigncurrencies do not expose the Fund to significant currencyrisk.

Funds may enter into foreign exchange forward contractsor currency futures contracts for hedging purposes toreduce its foreign currency exposure.

iii) Other price risk

Other price risk is the risk that the fair value of the Fund’sfinancial instruments will fluctuate as a result of changesin market prices (other than those arising from interestrate or currency risk). The impact on Net Assets of theFund is based on a 20% change in respective stock indexusing historical measure of the sensitivity of the Fund’sreturn relative to the return of its benchmark stock indexwith all other variables held constant.

b) Credit risk

Credit risk is the risk that the counterparty of a financialinstrument will fail to discharge an obligation or commit-ment that it has entered into with the Fund. Where theFund invests in debt instruments, this represents the main

208

concentration of credit risk. The market value of debtinstruments includes consideration of the creditworthinessof the issuer, and accordingly, represents the maximumcredit risk exposure to the Fund. Credit risk may also existin relation to counterparties of futures and currency for-ward contracts. The risk of default is considered minimal,as delivery of securities sold is only made once the brokerhas received payment. Payment is only made on a purchaseonce the securities have been received by the broker.

The Fund may enter into securities lending transactions withcounterparties whereby the Fund temporarily exchangessecurities for collateral with a commitment by the counter-party to deliver the same securities on a future date. Creditrisk associated with these transactions is considered minimalas all counterparties have a sufficient approved credit ratingand the market value of cash or securities held as collateralmust be at least 102% of the fair value of the securitiesloaned as at the end of each trading day.

Portfolios invest in underlying funds and are exposed toindirect credit risk in the event that the underlying fundsinvest in debt instruments and derivatives.

c) Liquidity risk

The Fund’s exposure to liquidity risk arises primarily fromthe daily cash redemption of units. The Fund primarilyinvests in securities that are traded in active markets andcan be readily disposed of. In addition, the Fund aims toretain sufficient cash and cash equivalent positions tomaintain liquidity and has the ability to borrow up to 5%of its Net Asset Value for the purpose of funding

redemptions. The Fund may, from time to time, enter intoover-the-counter derivative contracts or invest in securitiesthat are not traded in an active market and may be illiquid.Illiquid securities are identified in the respective Fund’sStatement of Investment Portfolios.

4. Unitholders’ equity

Units issued and outstanding represent the capital of eachFund. Each of the Funds may issue an unlimited numberof units. Each unit is redeemable at the option of theunitholder in accordance with the Declaration of Trust,ranks pari passu with all other units of the Fund, andentitles the unitholder to a proportionate undivided inter-est in the Net Asset Value of the Fund. Unitholders areentitled to distributions when declared. Distributions onunits of a Fund are reinvested in additional units of theFund or at the option of the unitholder, paid in cash. TheFunds have no restrictions on capital or specific capitalrequirements. SAM manages the capital of the Funds inaccordance with the Funds’ investment objectives.

The units of each of the Funds are issued and redeemedat their Pricing NAV per unit which is determined as ofthe close of business on each day that the Toronto StockExchange is open for trading. The Pricing NAV per unit iscalculated by dividing the net assets of the Fund by thetotal number of units outstanding.

For the six-month periods ended June 30, 2010 and 2009,the following numbers of units were issued, reinvested andredeemed:

FundUnits

issuedUnits

reinvestedUnits

redeemedUnits

issuedUnits

reinvestedUnits

redeemed

2010 2009

Scotia T-Bill FundClass A Units 4,552,175 4,094 4,470,586 4,061,849 13,571 5,080,661

Scotia Premium T-bill FundClass A Units 22,050,303 111,704 31,752,612 35,789,757 293,218 43,005,362

Scotia Money Market FundClass A Units 45,337,862 45,358 54,522,666 64,407,800 347,942 59,304,725Advisor Class Units 368,908 337 430,479 1,161,064 3,253 1,069,326Premium Class 25,442,172 86,089 45,606,905 42,575,673 83,796 10,926,799Class I Units 470,815 4,851 103,396 120,481 11,954 77,282Manager Class Units 91,803,124 386,283 102,639,861 100,772,369 952,435 95,749,517

Scotia U.S. $ Money Market FundClass A Units 4,797,741 2,841 4,614,598 7,567,560 7,636 6,893,724

Scotia Short-Mid Government Bond FundClass I Units 2,275,994 68,128 – 489,364 3,692 7,056Manager Class Units 15,271,480 886,721 10,202,297 9,836,427 572,328 6,301,134

Scotia Mortgage Income FundClass A Units 5,857,764 289,637 5,785,141 8,144,773 301,341 1,146,568Class F Units 518,106 26,162 82,288 346,884 2,026 13,399Class I Units 1,759,453 416,965 493,655 576,207 634,804 55,254

Scotia Bond FundClass A Units 2,356,568 73,266 762,051 – – –Class I Units 4,112,051 893,084 3,100,965 – – –

Scotia Canadian Income FundClass A Units 11,957,383 1,057,349 6,165,084 4,211,820 1,097,902 3,342,280Advisor Class Units 366,079 6,800 24,837 80,049 1,548 18,377Class F Units 5,500 318 6,920 4,654 456 8,639Class I Units 27,476,541 1,794,787 4,702,209 9,692,604 1,900,253 1,983,360Manager Class Units 4,398,047 552,925 4,952,721 3,264,567 601,912 5,999,175

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FundUnits

issuedUnits

reinvestedUnits

redeemedUnits

issuedUnits

reinvestedUnits

redeemed

2010 2009

Scotia Canadian Corporate Bond FundClass I Units 7,922,905 950,635 3,140,830 338,534 468,425 982,318Manager Class Units 20,624,518 3,447,151 28,300,348 29,732,143 3,432,542 20,109,188

Scotia U.S. $ Bond FundClass A Units 2,112,857 39,992 359,385 196,758 26,091 99,985Class F Units 3,433 17 – – 17 843

Scotia Global Bond FundClass A Units 125,117 14,435 326,642 526,318 34,887 513,064Class I Units 1,785,890 152,954 1,263,763 707,018 50,109 423,931

Scotia Advantaged Income FundManager Class Units 1,521,075 – 699,369 1,023,015 – 674,005

Scotia Diversified Monthly Income FundClass A Units 37,003,772 2,023,547 9,282,527 16,448,925 1,380,095 5,437,927Advisor Class Units 153,324 8,222 108,357 207,433 2,006 6,801Class F Units 11,548 53 74 374 28 114

Scotia Canadian Balanced FundClass A Units 12,268,052 712,898 8,584,841 11,459,858 1,081,079 5,670,069Class F Units 2,788 41 639 123 45 –

Scotia Canadian Tactical Asset Allocation FundClass A Units 2,917,754 156,484 1,710,189 1,673,254 246,805 1,236,082Advisor Class Units 26,246 245 1,867 5,496 265 –Class F Units 369 16 5 21 18 –

Scotia Canadian Dividend FundClass A Units 7,338,211 273,488 3,931,692 4,707,045 452,991 3,003,016Advisor Class Units 150,723 2,039 31,811 217,487 3,394 45,909Class F Units 35,037 1,567 63,097 32,161 2,299 25,969Class I Units 1,563,211 273,256 1,472,241 744,415 279,184 405,298Manager Class Units 1,466,013 35,110 722,329 797,258 23,592 621,098

Scotia Canadian Blue Chip FundClass A Units 368,582 – 792,915 349,163 2 563,248Class F Units – – – – – 298Class I Units 1,843 – 41,983 57,433 – 136,818

Scotia Canadian Equity FundClass I Units 11,272,621 – 154,052 3,790,863 – 77,901Manager Class Units 13,993,100 – 6,380,393 3,671,315 – 9,638,685

Scotia Canadian Growth FundClass A Units 233,834 – 566,311 269,357 – 395,425Advisor Class Units 1,304 – 25 641 – 408Class F Units 1,257 – 3,367 – – –Class I Units 110,469 – 19,626 123,655 – 206,013

Scotia Canadian Small Cap FundClass A Units 279,378 – 283,271 136,586 – 158,437Class F units – – 322 – – –Class I Units 53,109 – 170,226 224,927 – 1,639,923

Scotia Resource FundClass A Units 896,838 – 594,693 1,079,011 – 387,399Class F Units 150 – – – – –Class I Units 333,850 – 55,362 – – –

Scotia North American Equity FundManager Class Units 19,448 – 6,536,717 14,702,802 – 5,701,006

Scotia Cyclical Opportunities FundManager Class Units 1,359,903 – 925,978 3,108,807 (59) 707,977

Scotia U.S. Equity FundClass I Units 4,009,644 – 10,702 1,228,243 – 18,088Manager Class Units 25,382,626 – 8,435,637 4,963,844 – 5,926,570

Scotia U.S. Growth FundClass A Units 190,151 – 424,249 219,038 – 273,724Class F Units – – – – – –

Scotia U.S. Value FundClass A Units 121,997 – 267,529 123,563 – 180,415Class I Units 394,480 – 144,836 1,076,261 – 186,555

Scotia International Equity FundManager Class Units 2,223,423 – 2,446,578 4,273,163 – 10,936,675

Scotia International Value FundClass A Units 61,528 – 251,853 93,106 (3) 146,768Advisor Class Units 677 – 677 1,441 – –Class I Units 1,662,911 – 209,296 539,480 – 1,496,531

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FundUnits

issuedUnits

reinvestedUnits

redeemedUnits

issuedUnits

reinvestedUnits

redeemed

2010 2009

Scotia European FundClass A Units 106,138 – 297,672 58,604 6 149,325Class I Units 5,712 – – 32,982 – 578,286

Scotia Pacific Rim FundClass A Units 207,490 – 237,506 146,168 – 143,995Class I Units 328,221 – 4,296 102,703 – 3,830

Scotia Latin American FundClass A Units 269,734 – 269,726 206,494 – 160,991Class F Units 1,310 – 295 51 – –Class I Units 279,809 – 59,616 10,710 – 50,343

Scotia Global Growth FundClass A Units 130,240 – 240,518 150,043 – 153,365Advisor Class Units – – 98 323 – –Class I Units 719,111 – 42,723 202,003 – 139,439

Scotia Global Small Cap FundClass A Units 35,373 – 37,886 29,134 – 23,811Class I Units 527,697 – 282,404 964,634 – 279,087

Scotia Global Opportunities FundClass A Units 112,854 – 74,157 45,391 – 57,615Advisor Class Units 1,728 – 325 – – –Class F Units – – 2,855 – – 831Class I Units 458,025 – 192,543 697,875 – 1,149,175

Scotia Global Climate Change FundClass A Units 167,018 – 129,242 199,951 – 51,148Advisor Class Units 1,550 – 6,047 10,947 – 15,686Class I Units 732,499 – 675 – – –

Scotia Canadian Bond Index FundClass A Units 5,785,103 409,116 4,097,599 5,225,095 210,896 1,266,469Class F Units 915 269 21,461 13,470 842 10,739Class I Units 162,548 102,935 927,274 1,241,175 93,198 326,195

Scotia Canadian Index FundClass A Units 1,281,350 (17) 894,253 1,499,700 (1) 731,821Class F Units 2,030 – 3,348 2,584 – 1,110Class I Units 130,304 – 292,964 97,434 – 363,902

Scotia U.S. Index FundClass A Units 313,129 – 737,592 393,766 – 283,670Class I Units 112,495 – 100,451 247,463 – 85,842

Scotia CanAm@ Index FundClass A Units 138,883 – 831,850 213,855 – 515,145Class F Units – – – – – –

Scotia Nasdaq Index FundClass A Units 281,348 – 302,408 385,616 – 214,997Class F Units 2,333 – – – – 694

Scotia International Index FundClass A Units 224,618 – 424,150 261,545 – 247,147Class F Units – – 951 – – –Class I Units 1,087,438 – 797,441 821,253 – 157,340

Scotia Selected Income & Modest Growth PortfolioClass A Units 5,140,994 (44) 2,223,288 2,195,484 85 1,664,135Advisor Class Units – – – – – –

Scotia Selected Balanced Income & Growth PortfolioClass A Units 10,544,822 62 5,220,123 6,180,461 4 3,724,339Advisor Class Units 493 – – 79 – –Class F Units 7,059 – 4,198 – – –

Scotia Selected Moderate Growth PortfolioClass A Units 5,850,119 2 3,344,243 3,746,592 (14) 2,278,010Advisor Class Units 3 – – – – –

Scotia Selected Aggressive Growth PortfolioClass A Units 1,085,684 – 866,873 802,386 – 475,087Advisor Class Units – – – 1,173 – –

Scotia Partners Income & Modest Growth PortfolioClass A Units 3,311,850 26 2,371,863 1,624,528 32 2,236,687Class F Units 802 – – – – –

Scotia Partners Balanced Income & Growth PortfolioClass A Units 9,547,604 20 7,507,918 6,421,676 (20) 5,913,844Class F Units 12,920 – 1,984 557 – 1,840

Scotia Partners Moderate Growth PortfolioClass A Units 8,919,937 – 7,817,595 6,073,976 (21) 5,666,598Class F Units 2,221 – 11,225 2,403 – 2,460

211

FundUnits

issuedUnits

reinvestedUnits

redeemedUnits

issuedUnits

reinvestedUnits

redeemed

2010 2009

Scotia Partners Aggressive Growth PortfolioClass A Units 2,308,985 – 2,267,583 1,736,909 – 1,709,415Class F Units 1,495 – 1,047 2,224 – 1,531

Scotia Vision Conservative 2010 PortfolioClass A Units 53,041 – 613,755 69,711 – 224,627

Scotia Vision Aggressive 2010 PortfolioClass A Units 12,297 – 109,721 23,339 – 51,798

Scotia Vision Conservative 2015 PortfolioClass A Units 248,848 – 566,459 205,795 (16) 415,642


Scotia Vision Conservative 2020 PortfolioClass A Units 280,764 – 1,072,802 377,489 – 378,985


Scotia Vision Conservative 2030 PortfolioClass A Units 187,628 – 491,073 241,968 – 207,968


Scotia INNOVA Income PortfolioClass A Units 13,955,924 – 1,836,579 3,249,993 – 87,618Class T Units 1,767,912 4,823 172,449 – – –

Scotia INNOVA Balanced Income PortfolioClass A Units 13,105,710 – 1,112,815 3,698,280 – 157,773Class T Units 1,846,376 5,242 86,400 – – –

Scotia INNOVA Balanced Growth PortfolioClass A Units 17,646,715 (37) 1,047,134 5,479,562 – 51,619Class T Units 1,328,813 6,512 96,181 – – –

Scotia INNOVA Growth PortfolioClass A Units 8,367,149 34 646,216 3,442,320 – 30,572

Scotia INNOVA Maximum Growth PortfolioClass A Units 1,830,946 – 198,339 865,103 – 22,450

5. Management fees and sales charges

The Funds’ management fees are calculated daily and pay-able monthly on the first business day of the followingcalendar month. The Manager is entitled to a maximumannual management fee, exclusive of sales taxes, as follows:

Class AUnits

Class FUnits

ManagerClassUnits

AdvisorClassUnits

PremiumClassUnits

Class TUnits

% of Net Asset Value

Scotia T-Bill Fund 1.00 – – – – –Scotia Premium T-Bill Fund 0.50 – – – – –Scotia Money Market Fund 1.00 – 0.10 1.00 0.30 –Scotia U.S. $ Money Market Fund 1.00 – – – – –Scotia Short-Mid Government Bond Fund – – 0.10 – – –Scotia Mortgage Income Fund 1.25 0.625 – – – –Scotia Bond Fund 1.10 – – – – –Scotia Canadian Income Fund 1.25 0.625 0.10 1.25 – –Scotia Canadian Corporate Bond Fund – – 0.10 – – –Scotia U.S. $ Bond Fund 1.50 0.75 – – – –Scotia Global Bond Fund 1.50 0.75 – – – –Scotia Advantaged Income Fund – – 0.10 – – –Scotia Diversified Monthly Income Fund 1.25 0.625 – 1.50 – –Scotia Canadian Balanced Fund 1.75 0.875 – – – –Scotia Canadian Tactical Asset Allocation

Fund 1.75 0.875 – 1.95 – –Scotia Canadian Dividend Fund 1.50 0.75 0.10 1.75 – –Scotia Canadian Blue Chip Fund 1.85 0.925 – – – –Scotia Canadian Equity Fund – – 0.10 – – –Scotia Canadian Growth Fund 1.85 0.925 – 1.95 – –Scotia Canadian Small Cap Fund 2.00 1.00 0.10 – – –Scotia Resource Fund 2.00 1.00 – – – –Scotia North American Equity Fund – – 0.10 – – –

Class AUnits

Class FUnits

ManagerClassUnits

AdvisorClassUnits

PremiumClassUnits

Class TUnits


Scotia Cyclical Opportunities Fund – – 0.10 – – –Scotia U.S. Equity Fund – – 0.10 – – –Scotia U.S. Growth Fund 2.00 1.00 – – – –Scotia U.S. Value Fund 2.00 1.00 – – – –Scotia International Equity Fund – – 0.30 – – –Scotia International Value Fund 2.15 1.15 – 2.15 – –Scotia European Fund 2.00 1.00 – – – –Scotia Pacific Rim Fund 2.00 1.00 – – – –Scotia Latin American Fund 2.50 1.25 – – – –Scotia Global Growth Fund 2.00 1.00 – 2.00 – –Scotia Global Small Cap Fund 2.35 1.35 – – – –Scotia Global Opportunities Fund 2.20 1.20 – 2.20 – –Scotia Global Climate Change Fund 2.00 1.00 – 2.00 – –Scotia Canadian Bond Index Fund 0.70 0.35 – – – –Scotia Canadian Index Fund 0.80 0.40 – – – –Scotia U.S. Index Fund 0.80 0.40 – – – –Scotia CanAm» Index Fund 0.80 0.40 – – – –Scotia Nasdaq Index Fund 0.80 0.40 – – – –Scotia International Index Fund 0.80 0.40 – – – –Scotia Selected Income & Modest Growth

Portfolio 1.60 0.60 – 1.80 – –Scotia Selected Balanced Income &

Growth Portfolio 1.75 0.75 – 1.95 – –Scotia Selected Moderate Growth

Portfolio 1.90 0.90 – 2.10 – –Scotia Selected Aggressive Growth

Portfolio 2.10 1.10 – 2.20 – –Scotia Partners Income & Modest Growth

Portfolio 1.85 0.85 – – – –Scotia Partners Balanced Income &

Growth Portfolio 2.00 1.00 – – – –

212

Class AUnits

Class FUnits

ManagerClassUnits

AdvisorClassUnits

PremiumClassUnits

Class TUnits


Scotia Partners Moderate GrowthPortfolio 2.15 1.15 – – – –

Scotia Partners Aggressive GrowthPortfolio 2.35 1.35 – – – –

Scotia Vision Conservative 2010 Portfolio 1.60 – – – – –Scotia Vision Aggressive 2010 Portfolio 1.65 – – – – –Scotia Vision Conservative 2015 Portfolio 1.70 – – – – –Scotia Vision Aggressive 2015 Portfolio 1.75 – – – – –Scotia Vision Conservative 2020 Portfolio 1.80 – – – – –Scotia Vision Aggressive 2020 Portfolio 1.85 – – – – –Scotia Vision Conservative 2030 Portfolio 2.00 – – – – –Scotia Vision Aggressive 2030 Portfolio 2.05 – – – – –Scotia INNOVA Income Portfolio 1.60 – – – – 1.60Scotia INNOVA Balanced Income

Portfolio 1.70 – – – – 1.70Scotia INNOVA Balanced Growth

Portfolio 1.80 – – – – 1.80Scotia INNOVA Growth Portfolio 1.90 – – – – –Scotia INNOVA Maximum Growth Portfolio 2.00 – – – – –

Scotia Premium T-Bill Fund pays a rebate, called a manage-ment fee distributions of 0.20% when the value of the Fundheld within an account is $250,000 to $1,000,000. It pays amanagement fee distribution of 0.35% when the value ofthe Fund held within an account is greater than $1,000,000.

As money market yields have remained low during theperiod, the Manager has opted to waive a portion of themanagement fees for Scotia T-Bill Fund, Scotia PremiumT-Bill Fund, Scotia Money Market Fund and ScotiaU.S. $ Money Market Fund that otherwise would havebeen charged. The Manager may discontinue waiving feesand expenses at any time, without notice.

No management fees are charged on Class I Units. Instead,investors may negotiate a separate fee that is paid directlyto the Manager.

Investors who choose to buy Advisor Class Units under thefront-end sales charge option may have to pay a salescharge that may range from 0% to 6% of the amountinvested. The amount of the sales charge is negotiatedbetween the investor and his or her dealer. The salescharge will be deducted from the amount invested andpaid to the dealer as a commission. There are no salescharges associated with the purchase of Class A, PremiumClass, Class F, Class T or Manager Class Units.

6. Operating expenses

Each class of a Fund is allocated its own expenses and itsproportionate share of the Fund’s expenses that are com-mon to all classes. Operating expenses may include legalfees and other costs incurred in order to comply with legaland regulatory requirements and policies, audit fees, cus-todial fees, taxes, brokerage commissions, unitholder com-munication costs and other administration costs. Any ofthese expenses which have been absorbed by the Managerare reflected in the Statement of Operations. The Managermay cease to absorb expenses at any time.

7. Income taxes

The Funds qualify or expect to qualify as mutual fund trustsunder the Income Tax Act (Canada). Each of the Funddistributes sufficient amounts of its taxable net investmentincome and net realized taxable capital gains, less theamount required to enable each Fund to utilize any availabletax credit attributable to redemptions during the period toits unitholders. Such income is taxable in the hands of theunitholders. Accordingly, no provision for income taxes hasbeen recorded in these financial statements.

Net capital losses may be carried forward indefinitely toreduce future net realized capital gains. Non-capital losses forincome tax purposes may be carried forward for up to twentyyears and applied against capital gains realized and net incomein future years. The following Funds have net capital and/ornon-capital loss carryforwards as at December 31, 2009:

Fund

Yearof

expiry

Non-CapitalLosses

$

CapitalLosses

$

Scotia U.S. $ Money Market Fund – – 51,758,929Scotia Mortgage Income Fund – – 2,040,482Scotia Canadian Income Fund – – 44,243,331Scotia Canadian Corporate Bond Fund – – 21,820,215Scotia U.S. $ Bond Fund – – 10,520,733Scotia Global Bond Fund – – 25,832,407Scotia Advantaged Income Fund – – 6,254,535Scotia Diversified Monthly Income Fund – – 20,213,472Scotia Canadian Balanced Fund – – 155,913,346Scotia Canadian Tactical Asset Allocation Fund – – 25,094,340Scotia Canadian Dividend Fund – – 89,797,972Scotia Canadian Equity Fund – – 12,218,205Scotia Canadian Growth Fund – – 23,424,983Scotia Canadian Small Cap Fund – – 25,330,264Scotia Resource Fund 2029 659,035 17,638,037Scotia North American Equity Fund – – 63,297,189Scotia U.S. Equity Fund – – 33,650,274Scotia U.S. Growth Fund 2010 592,423 129,728,727

2014 494,003 –2015 449,146 –2028 367,040 –2029 232,487 –

Scotia U.S. Value Fund 2010 941,120 43,551,9192014 2,268,537 –2015 2,141,180 –2026 489,880 –

Scotia International Equity Fund – – 155,445,540Scotia International Value Fund – – 28,769,379Scotia European Fund – – 50,082,260Scotia Pacific Rim Fund 2015 213,541 15,892,054

2028 60,160 –2029 92,320 –

Scotia Latin American Fund 2028 468,379 11,652,4902029 47,312 –

Scotia Global Growth Fund – – 118,725,479Scotia Global Small Cap Fund – – 51,243,991Scotia Global Opportunities Fund – – 22,634,091Scotia Global Climate Change Fund 2028 52,703 3,132,799

2029 8,075 –Scotia Canadian Bond Index Fund – – 503,996Scotia Canadian Index Fund – – 33,741,869Scotia U.S. Index Fund – – 25,745,823Scotia CanAm» Index Fund 2028 40,103,254 93,895,080Scotia Nasdaq Index Fund 2028 3,419,129 6,646,549Scotia International Index Fund 2028 15,571,453 6,911,350Scotia Selected Income & Modest Growth Portfolio – – 6,918,060Scotia Selected Balanced Income & Growth Portfolio – – 49,178,450Scotia Selected Moderate Growth Portfolio – – 41,450,463

213

Fund

Yearof

expiry

Non-CapitalLosses

$

CapitalLosses

$

Scotia Selected Aggressive Growth Portfolio 2028 89,173 10,607,9332029 115,033 –

Scotia Partners Income & Modest Growth Portfolio – – 1,107,088Scotia Partners Balanced Income & Growth Portfolio – – 5,277,272Scotia Partners Moderate Growth Portfolio 2014 373,425 6,412,095Scotia Partners Aggressive Growth Portfolio 2026 193,524 2,896,287

2029 758,991 –Scotia Vision Conservative 2010 Portfolio – – 2,011,686Scotia Vision Aggressive 2010 Portfolio – – 175,865Scotia Vision Conservative 2015 Portfolio – – 3,248,712Scotia Vision Aggressive 2015 Portfolio – – 1,035,213Scotia Vision Conservative 2020 Portfolio – – 3,146,092Scotia Vision Aggressive 2020 Portfolio – – 1,462,103Scotia Vision Conservative 2030 Portfolio – – 1,943,142Scotia Vision Aggressive 2030 Portfolio – – 662,653

8. Soft dollar commissions

The ascertainable soft dollar arrangements in connectionwith investment portfolio transactions for the six-monthperiods ended June 30, 2010 and 2009 are set out below.

Fund 2010 2009

Scotia Canadian Balanced Fund $ – $ 2,767Scotia Canadian Tactical Asset Allocation Fund 24,652 15,598Scotia U.S. Value Fund – 7,236Scotia International Equity Fund 28,131 5,572Scotia International Value Fund 235 987Scotia European Fund 3,015 533Scotia Latin American Fund 168,919 972Scotia Global Growth Fund 5,229 20,094Scotia Global Small Cap Fund 31,039 61,295Scotia Global Opportunities Fund 9,914 8,332Scotia Global Climate Change Fund 32,127 –

For certain Funds advised by SAM, soft dollar arrange-ments are not ascertainable on a per Fund basis. However,the aggregate value of the soft dollar arrangements forthese Funds for the six-month period ended June 30, 2010is $67,047 (2009 – $168,288).

Soft dollar commissions are arrangements pursuant towhich products or services, other than the execution ofportfolio securities transactions, are obtained by a portfolioadviser from or through a broker-dealer in exchange fordirecting client securities transactions to the broker-dealer.

9. Securities lending

The Funds have entered into a securities lending programwith their custodian, The Bank of Nova Scotia (“BNS”).The aggregate market value of all securities loaned by aFund cannot exceed 50% of the net assets of the Fund.

The Funds receive collateral of at least 102% of the valueof the securities on loan. Collateral is received in the formof debt obligations of the Government of Canada, a Cana-dian provincial government, the government of the UnitedStates of America, certain financial institutions or otherqualified securities, and is not included in the Statementof Investment Portfolio. The aggregated dollar values of

the securities on loan and the collateral received by theFunds as at June 30, 2010 are as follows:

FundMarket value of

securities on loanMarket value of

collateral received

Scotia T-Bill Fund $ 79,962,890 $ 84,399,860Scotia Premium T-Bill Fund 358,888,363 377,550,371Scotia Short-Mid Government Bond Fund 134,663,942 141,405,135Scotia Mortgage Income Fund 19,999,040 21,084,310Scotia Canadian Income Fund 45,407,212 47,969,504Scotia Canadian Corporate Bond Fund 52,793,742 55,509,640Scotia Diversified Monthly Income Fund 107,056,366 112,983,129Scotia Canadian Balanced Fund 89,270,981 94,162,595Scotia Canadian Tactical Asset Allocation Fund 9,761,868 10,340,481Scotia Canadian Dividend Fund 203,192,995 213,638,312Scotia Canadian Blue Chip Fund 10,019,966 10,629,180Scotia Canadian Equity Fund 27,001,840 28,382,972Scotia Canadian Growth Fund 14,262,168 15,090,666Scotia Canadian Small Cap Fund 9,851,680 10,453,543Scotia Resource Fund 14,108,833 15,033,431Scotia North American Equity Fund 7,683,885 8,058,417Scotia Global Growth Fund 1,780,888 1,904,838Scotia Canadian Bond Index Fund 60,505,597 63,737,587Scotia Canadian Index Fund 21,177,591 22,299,739Scotia U.S. Index Fund 20,600 25,653Scotia International Index Fund 9,099,563 9,622,094

10. Related party transactions

(a) BNS owns a significant interest in CI Financial Corp.the parent company of the manager of CI Funds andBlackmont Capital Inc. Effective December 31, 2009,Blackmont Capital Inc. was sold and thus, ceased tobe a related party. BNS also owns a significant interestin DundeeWealth Inc., the parent company of themanager of Dynamic Funds and Dundee SecuritiesCorporation. These entities are therefore consideredrelated parties. Some of the Funds have holdings inCI Financial Corp. and DundeeWealth Inc. and hold-ings in certain CI Funds and Dynamic Funds as atJune 30, 2010 and 2009. The brokerage fees paid torelated parties for the six month periods endedJune 30, 2010 and 2009 are as follows:

FundScotia

Capital Inc.Dundee Securities

Corporation

2010

Scotia Advantaged Income Fund $ 2,806 $ 247Scotia Diversified Monthly Income Fund 77,843 4,647Scotia Canadian Balanced Fund 190,104 14,546Scotia Canadian Tactical Asset Allocation Fund 16,842 306Scotia Canadian Dividend Fund 157,162 2,000Scotia Canadian Blue Chip Fund 27,288 606Scotia Canadian Equity Fund 41,765 10,023Scotia Canadian Growth Fund 132,456 12,858Scotia Canadian Small Cap Fund 2,414 2,625Scotia Resource Fund 7,399 5,400Scotia North American Equity Fund 17,478 –Scotia Cyclical Opportunities Fund 28,501 10,215

214

FundScotia

Capital Inc.Dundee Securities

CorporationBlackmontCapital Inc.

2009

Scotia Diversified Monthly Income Fund $ 40,702 $ – $ –Scotia Canadian Balanced Fund 144,299 – 7,890Scotia Canadian Tactical Asset Allocation Fund 27,902 188 776Scotia Canadian Dividend Fund 119,357 3,500 10,050Scotia Canadian Blue Chip Fund 3,460 – 2,175Scotia Canadian Equity Fund 21,906 – 1,250Scotia Canadian Growth Fund 158,491 18,600 59,200Scotia Canadian Small Cap Fund 14,816 14,975 6,544Scotia Resource Fund 12,960 2,225 4,000Scotia North American Equity Fund 16,591 372 9,430Scotia Cyclical Opportunities Fund 41,804 – –

(b) Scotia Mortgage Income Fund purchases and sellsmortgages from Scotia Mortgage Corporation (“SMC”),a wholly owned subsidiary of BNS, and from BNS atan amount which will produce a yield to the Fund ofnot more than one-quarter of one percent less thanthe interest rate at which BNS is making similarcommitments.

For conventional uninsured mortgages, the ScotiaMortgage Income Fund pays SMC or BNS a guarantee

fee equal to the present value of 0.25 percent appliedto the present value of each mortgage at the time ofpurchase. This fee is considered a transaction costand is deferred and amortized over the remaining termto maturity of the mortgages purchased. BNS hasagreed to purchase from Scotia Mortgage IncomeFund any mortgage purchased from SMC or from BNSat such time as the mortgage is in default. The priceof such purchase is equal to the principal value plusunpaid interest. There are no mortgages in arrears asat June 30, 2010.

Mortgage service fees of $987,050 were paid to SMCfor the six month periods ended June 30, 2010(2009 – $735,392).

(c) The Manager may enter into transactions and servicearrangements with its affiliates. Scotia Capital Inc.may be involved in the purchase and sale of portfoliosecurities and currency forward contracts. BNS actsas custodian of the Funds.

11. A comparison of Net Asset Value* and Net Assets per unit**, as at June 30, 2010 and December 31, 2009, is asfollows:

FundNet Asset Value

Per Unit ($)Net Assets

Per Unit ($)Net Asset Value


Per Unit ($)

June 30, 2010 December 31, 2009

Scotia Short-Mid Government Bond FundClass I Units 10.53 10.53 10.44 10.43Manager Class Units 10.54 10.54 10.44 10.43

Scotia Bond FundClass A Units 10.27 10.26 10.03 10.02Class I Units 10.25 10.24 10.03 10.02

Scotia Canadian Income FundClass A Units 13.16 13.15 12.85 12.83Advisor Class Units 13.13 13.12 12.82 12.80Class F Units 13.13 13.11 12.81 12.80Class I Units 13.08 13.06 12.79 12.77Manager Class Units 13.09 13.07 12.80 12.78

Scotia Canadian Corporate Bond FundClass I Units 10.33 10.31 10.15 10.12Manager Class Units 10.34 10.32 10.15 10.13

Scotia U.S. $ Bond FundClass A Units 11.09 11.08 10.79 10.79Class F Units 11.04 11.04 10.77 10.77

Scotia Global Bond FundClass A Units 8.60 8.59 8.38 8.38Class I Units 8.53 8.52 8.33 8.33

Scotia Advantaged Income FundManager Class Units 8.21 8.21 8.68 8.66

Scotia Diversified Monthly Income FundClass A Units 9.54 9.54 9.68 9.66Advisor Class Units 9.48 9.48 9.64 9.63Class F Units 9.76 9.76 9.86 9.85

Scotia Canadian Balanced FundClass A Units 18.93 18.92 19.32 19.29Class F Units 18.53 18.52 18.97 18.94

Scotia Canadian Tactical Asset Allocation FundClass A Units 16.38 16.36 16.79 16.75Advisor Class Units 16.16 16.14 16.57 16.54Class F Units 16.51 16.50 16.98 16.95

215

FundNet Asset Value




Per Unit ($)

June 30, 2010 December 31, 2009

Scotia Canadian Dividend FundClass A Units 34.40 34.39 35.88 35.81Advisor Class Units 34.24 34.23 35.68 35.61Class F Units 34.18 34.17 35.71 35.64Class I Units 34.13 34.12 35.78 35.71Manager Class Units 33.98 33.97 35.55 35.48

Scotia Canadian Blue Chip FundClass A Units 23.29 23.28 24.60 24.55Class F Units 23.38 23.38 24.62 24.57Class I Units 25.62 25.62 26.80 26.74

Scotia Canadian Equity FundClass I Units 10.28 10.28 10.73 10.71Manager Class Units 10.28 10.28 10.74 10.71

Scotia Canadian Growth FundClass A Units 49.28 49.26 51.73 51.63Advisor Class Units 49.09 49.07 51.58 51.48Class F Units 51.15 51.14 53.47 53.37Class I Units 55.98 55.96 58.16 58.05

Scotia Canadian Small Cap FundClass A Units 18.85 18.76 20.04 19.96Class F Units – – 19.70 19.62Class I Units 20.83 20.73 21.89 21.81

Scotia Resource FundClass A Units 19.10 19.07 21.20 21.12Class F Units 19.04 19.01 – –Class I Units 19.40 19.37 21.30 21.22

Scotia North American Equity FundManager Class Units 8.64 8.64 9.25 9.24

Scotia Cyclical Opportunities FundManager Class Units 10.15 10.14 10.74 10.73

Scotia U.S. Equity FundClass I Units 7.01 7.00 7.62 7.62Manager Class Units 7.01 7.00 7.62 7.62

Scotia U.S. Growth FundClass A Units 5.78 5.78 6.30 6.30Class F Units 5.94 5.94 6.45 6.45

Scotia U.S. Value FundClass A Units 6.36 6.36 6.41 6.40Class I Units 6.82 6.81 6.78 6.78

Scotia International Equity FundManager Class Units 6.80 6.80 8.01 8.01

Scotia International Value FundClass A Units 5.37 5.37 5.98 5.98Advisor Class Units 5.22 5.22 5.81 5.81Class I Units 5.45 5.45 5.99 5.99

Scotia European FundClass A Units 7.02 7.02 8.43 8.43Class I Units 7.04 7.04 8.36 8.36

Scotia Pacific Rim FundClass A Units 9.90 9.89 10.87 10.87Class I Units 11.04 11.03 11.98 11.98

Scotia Latin American FundClass A Units 25.22 25.20 29.12 29.01Class F Units 25.67 25.65 29.55 29.43Class I Units 26.50 26.47 30.24 30.13

Scotia Global Growth FundClass A Units 25.24 25.23 27.36 27.36Advisor Class Units 25.24 25.23 27.36 27.36Class I Units 26.26 26.25 28.11 28.10

Scotia Global Small Cap FundClass A Units 5.53 5.53 5.85 5.84Class I Units 5.65 5.65 5.91 5.90

Scotia Global Opportunities FundClass A Units 7.17 7.16 7.40 7.39Advisor Class Units 6.97 6.96 7.19 7.18Class F Units – – 7.23 7.22Class I Units 7.30 7.30 7.44 7.43

216

FundNet Asset Value




Per Unit ($)

June 30, 2010 December 31, 2009

Scotia Global Climate Change FundClass A Units 6.57 6.56 7.38 7.37Advisor Class Units 6.57 6.56 7.38 7.37Class I Units 6.68 6.68 7.42 7.41

Scotia Canadian Bond Index FundClass A Units 11.04 11.03 10.84 10.83Class F Units 11.06 11.05 10.86 10.85Class I Units 10.99 10.98 10.81 10.79

Scotia Canadian Index FundClass A Units 19.43 19.42 20.03 19.98Class F Units 19.37 19.36 19.92 19.87Class I Units 19.16 19.15 19.66 19.61

Scotia U.S. Index FundClass A Units 10.04 10.04 10.70 10.69Class I Units 10.10 10.10 10.71 10.71

Scotia CamAm Index FundClass A Units 6.60 6.60 7.02 7.02Class F Units 6.68 6.68 7.10 7.10

Scotia Nasdaq Index FundClass A Units 4.14 4.14 4.38 4.38Class F Units 4.14 4.14 – –

Scotia International Index FundClass A Units 5.92 5.92 6.85 6.85Class F Units – – 6.87 6.86Class I Units 6.25 6.25 7.20 7.20

* Net Asset Value is the value used to determine the Funds’ daily price for purchase and redemption of units.** Net Assets per unit is defined in CICA Handbook Section 3855, “Financial Instruments—Recognition and Measure-ment”, which is prescribed under the Note 2(c)(i).

12. Future accounting changes

Effective January 1, 2011, International Financial Report-ing Standards (“IFRS”) will replace Canadian standardsand interpretations as Canadian GAAP for publiclyaccountable enterprises, which include the Funds.

The Manager has commenced the development of achangeover plan to meet the implementation date. Thekey elements of the plan include identifying differencesbetween the Fund’s current accounting policies and thoseit expects to apply under IFRS, as well as any accountingpolicy and implementation decisions and their resultingimpact, if any, on the Net Assets or Net Asset Value of theFunds. A disclosure of the qualitative and quantitativeimpact if any will be presented in the annual financialstatements for the year ending December 31, 2010. TheManager does not expect that there will be significantimpact to the Funds’ Net Asset Value as a result of thechangeover to IFRS. The Manager expects the changes tobe limited to presentation and disclosure relating to theFund’s consolidation, classification of puttables, and addi-tional note disclosures. However, the Manager’s currentassessment may change if new standards are issued or ifinterpretations of existing standards are revised.

The Canadian Accounting Standards Board (“AcSB”) hasissued an exposure draft on the adoption of IFRSs byInvestment Companies. Entities currently applyingAccounting Guideline 18, “Investment Companies” cancontinue to apply existing Canadian standards in Part V of

the CICA Handbook – Accounting until fiscal years begin-ning on or after January 1, 2012, although earlier applica-tion would be permitted. In light of this proposal, theManager is currently evaluating the impact on its transitionplan and timetable in the event that the AcSB proposal isconfirmed.

13. Comparative figures

Certain prior period comparative amounts have beenrestated to conform to the current period’s presentation.

14. Subsequent Events

Effective August 30, 2010, Thornburg Investment Manage-ment, Inc. will become the portfolio advisor for the ScotiaInternational Equity Fund, replacing Alliance Bernstein.

Effective August 30, 2010, Hermes Sourcecap Limited willbecome the portfolio advisor for the Scotia EuropeanFund, replacing Alliance Bernstein.

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9471219 (08/10)

F O R M O R E I N F O R M A T I O N A B O U T

ScotiaFunds™

please cal l

1 800 268-9269 (English) 1 800 387-5004 (French)

scotiafunds.com or visit any branch of Scotiabank,

Scotiatrust or ScotiaMcLeod.

® Registered trade-mark of The Bank of Nova Scotia, used under licence.

™ Trade-mark of The Bank of Nova Scotia, used under licence.

The ScotiaFunds are managed by Scotia Asset Management L.P. Scotia Securities Inc. and Scotia Captial Inc. are corporate entities separate from, although wholly-owned by, The Bank of Nova Scotia. ScotiaMcLeod and ScotiaMcLeod Direct Investing and Scotia iTRADE are divisions of Scotia Capital Inc. Member CIPF.

“Standard & Poor’s®”, “S&P®”, and “S&P 500” are trademarks of The McGraw-Hill Companies and have been licensed for use by The Bank of Nova Scotia and its subsidiary companies. “TSX” is a trademark of The Toronto Stock Exchange and has been licensed for use by The Bank of Nova Scotia and its subsidiary companies. The Nasdaq 100 Index is published by the Nasdaq Stock Market, Inc. The Nasdaq Stock Market, Inc. has no connection with Scotia Securities Inc. and has not passed upon the merits of investing in the Scotia Mutual Funds.

June 30, 2010

Investing for the long termScotiaFunds Semi-Annual Reportto Unitholders

Documents

FOR MORE INFORMATION ABOUT Investing for the please call ... · 9471219 (08/10) FOR MORE INFORMATION ABOUT ScotiaFunds™ please call 1 800 268-9269 (English) 1 800 387-5004 (French)