BELLWETHER CANADIAN STOCK FUND FINANCIAL …

BELLWETHER CANADIAN STOCK FUND FINANCIAL STATEMENTS

For the six months ended June 30, 2019 (Unaudited)

(in Canadian dollars)

BELLWETHER CANADIAN STOCK FUND

Statements of Financial Position As at June 30, 2019 (Unaudited)

ASSETS Current assets Cash and cash equivalents Interest receivable Dividends receivable Contributions receivable (Note 13) Investments owned, at fair value (Cost:$64,001,822 - 2018:$56,375,520)

LIABILITIES Current liabilities Accrued expenses Management fees payable Redemptions payable (Note 13)

Net Assets Attributable to Holders of Redeemable Units

Net Assets Attributable to Holders of Redeemable Units per Series Series F Series O

Number of Redeemable Units Outstanding Series F Series O

Net Assets Attributable to Holders of Redeemable Units per Unit Series F Series O

June 30, 2019 December 31, 2018

$

3,617,817 $

3,273,550

4,325

5,250

335,801

215,894

504,385

99,230

65,966,500

51,114,218

70,428,828

54,708,142

19,070 214

298,052

15,307 194

1,582

317,336

17,083

$

70,111,492 $

54,691,059

$

260,730 $

227,740

69,850,762

54,463,319

$

70,111,492 $

54,691,059

20,933 5,296,701

20,933 4,754,713

$

12.46 $

10.88

13.19

11.45

Approved:

.............................. Trustee

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

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BELLWETHER CANADIAN STOCK FUND

Statements of Comprehensive Income For the six-months ended June 30, 2019 (Unaudited)

Income Dividends Interest income for distribution purposes Change in unrealized gain (loss) on investments and foreign currency Realized gain on sale of investments and foreign currency

Expenses Operating costs (Note 7) Commissions and other portfolio transaction costs Management fees (Note 7) Withholding tax

2019

$

1,210,615 $

84,371

7,247,428

399,043

8,941,457

131,161 25,123 1,423 1,228

158,935

2018

571,621 35,018

(258,893) 125,353 473,099

100,810 19,354 1,593 ?

121,757

Increase in Net Assets Attributable to Holders of Redeemable Units

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Series

Series F Series O

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit

Series F Series O

$

8,782,522 $

$

32,990 $

8,749,532

$

8,782,522 $

$

1.58 $

1.68

351,342

(3,344) 354,686 351,342

(0.15) 0.14

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

2

BELLWETHER CANADIAN STOCK FUND

Statements of Changes in Net Assets Attributable to Holders of Redeemable Units For the six-months ended June 30, 2019 (Unaudited)

June 30, 2019 Series F Series O

Net assets attributable to

holders of redeemable units, beginning

of period

Proceeds from redeemable units

issued

Redemption of redeemable units

Increase in net assets

attributable to holders of

redeemable units

Net assets attributable to

holders of redeemable units, end of

period

$

227,740 $

? $

54,463,319

12,716,071

$

54,691,059 $

12,716,071 $

? $ (6,078,160) (6,078,160) $

32,990 $ 8,749,532 8,782,522 $

260,730 69,850,762 70,111,492

June 30, 2018 Series F Series O

Net assets attributable to

holders of redeemable units, beginning

of period

Proceeds from redeemable units

issued

Redemption of redeemable units

Increase (decrease) in net

assets attributable to

holders of redeemable units

Net assets attributable to

holders of redeemable units, end of

period

$

293,593 $

? $

24,485,666

17,012,290

$

24,779,259 $

17,012,290 $

? $ (1,173,476) (1,173,476) $

(3,344) $ 354,686 351,342 $

290,249 40,679,166 40,969,415

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

3

BELLWETHER CANADIAN STOCK FUND

Statements of Cash Flows For the six-months ended June 30, 2019 (Unaudited)

Cash provided by (used in): Operating Activities

Increase in Net Assets Attributable to Holders of Redeemable Units Adjustments for non-cash items

Commissions and other portfolio transaction costs Change in unrealized (gain) loss on investments and foreign currency Realized gain on sale of investments and foreign currency Change in non-cash balances Decrease (increase) in interest receivable Increase in dividends receivable Increase (decrease) in accrued expenses Increase (decrease) in management fees payable Proceeds from sale of investments Purchase of investments

Cash used in operating activities

Financing Activities Proceeds from issuances of redeemable units Amount paid on redemption of redeemable units

Cash provided by financing activities

Increase (decrease) in cash and cash equivalents during the period Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period

Supplemental information* Interest received Dividends received, net of withholding taxes

*Included as a part of cash flows from operating activities

2019

2018

$

8,782,522 $

351,342

25,123 (7,247,428)

(399,043)

19,354 258,893 (125,353)

925 (119,907)

3,763 20

3,580,944 (10,811,878)

(6,184,959)

(402) (90,189)

(4,889) (20)

380,267 (17,040,519)

(16,251,516)

12,310,916 (5,781,690)

6,529,226

16,973,732 (1,113,559)

15,860,173

344,267 3,273,550

(391,343) 1,910,985

$

3,617,817 $

1,519,642

85,296 1,151,435

34,616 481,432

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

4

BELLWETHER CANADIAN STOCK FUND

Schedule of Investment Portfolio As at June 30, 2019 (Unaudited)

Number of shares/units Investments owned

29,500 30,600 87,000 21,000 104,000 141,000 34,000 40,000

84 33,604

8,500 11,000 58,000 20,000 158,000 39,000 385,000 50,000 25,500 38,000 51,000 103,000 70,000 37,000 18,500 73,000 44,280 25,500 43,500

114 22,500 68,000 137,000 39,500 45,000 30,500 42,000 43,900 33,000 1,143,600 311,000 18,000

Canadian equities

Ag Growth International Inc.

$

Agnico Eagle Mines Ltd.

Alaris Royalty Corp.

Alimentation Couche-Tard Inc.

AltaGas Ltd.

American Hotel Income Properties REIT LP

BCE Inc.

Brookfield Asset Management Inc.

Brookfield Business Partners LP

Brookfield Infrastructure Partners LP

Brookfield Renewable Energy Partners LP

Canadian National Railway Co.

Canadian Natural Resources Ltd.

CGI Inc.

Chemtrade Logistics Income Fund

CI First Asset Morningstar Canada Momentum Index ETF

Crescent Point Energy Corp.

ECN Capital Corp.

Element Fleet Management Corp.

Emera Inc.

IGM Financial Inc.

Intertape Polymer Group Inc.

Invesco Canadian Dividend Index ETF

iShares S&P/TSX Canadian Dividend Aristocrats Index ETF Magna International Inc.

Manulife Financial Corp.

Newmont Goldcorp Corp.

Nutrien Ltd.

Pembina Pipeline Corp.

PrairieSky Royalty Ltd.

Royal Bank of Canada

Russel Metals Inc.

Savaria Corp.

Sun Life Financial Inc.

Suncor Energy Inc.

TC Energy Corp.

TFI International Inc.

The North West Co Inc.

The Toronto-Dominion Bank

Western Forest Products Inc.

Whitecap Resources Inc.

WSP Global Inc.

Average cost

1,546,754 $ 1,652,585 1,603,949 1,116,542 2,363,204 1,237,832 1,834,436 1,988,460

2,916 1,079,778

306,301 1,042,493 2,265,144 1,258,325 2,319,951

667,190 3,014,624

166,774 256,664 1,615,944 1,841,321 1,997,373 1,860,454 986,667 1,120,600 1,674,515 1,956,115 1,660,646 1,913,102

2,931 2,091,987 1,741,522 2,069,943 1,922,399 1,870,179 1,664,423 1,260,215 1,301,543 2,197,719 2,085,776 2,458,524

984,002

64,001,822

Fair value

1,622,500 2,054,484 1,636,470 1,730,610 2,060,240

944,700 2,025,720 2,506,000

4,283 1,886,193

385,049 1,333,200 2,047,980 2,013,600 1,480,460

718,380 1,667,050

211,000 243,780 2,033,380 1,906,890 1,896,230 1,902,600 979,020 1,205,460 1,737,400 2,223,742 1,786,275 2,120,625

2,098 2,341,575 1,502,800 1,845,390 2,142,085 1,838,250 1,980,060 1,664,460 1,312,171 2,525,160 1,829,760 1,321,750 1,297,620

65,966,500

% of net asset value

2.31 2.93 2.33 2.47 2.94 1.35 2.89 3.57 0.01 2.69 0.55 1.90 2.92 2.87 2.11 1.02 2.38 0.30 0.35 2.90 2.72 2.70 2.71 1.40 1.72 2.48 3.17 2.55 3.02 0.00 3.34 2.14 2.63 3.06 2.62 2.82 2.37 1.87 3.60 2.61 1.89 1.85

94.06

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

5

BELLWETHER CANADIAN STOCK FUND

Schedule of Investment Portfolio (Cont'd) As at June 30, 2019 (Unaudited)

Investments owned Total investments owned Commissions and other portfolio transaction costs

Net investments owned

Other assets, net

Net Assets Attributable to Holders of Redeemable Units

Average cost

Fair value

$ 64,001,822 $ 65,966,500

(90,072)

?

% of net asset value

94.06

?

$ 63,911,750

65,966,500

94.06

4,144,992

5.94

$ 70,111,492

100.00

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

6

BELLWETHER CANADIAN FUNDS Notes to Financial Statements

For the six months period ended June 30, 2019 (Unaudited)

1 Formation of the Fund

The Bellwether Canadian Performance Fund and the Bellwether Canadian Stock Fund (each a "Fund" or collectively, the "Funds") are open-ended mutual fund trusts. The Bellwether Canadian Performance Fund and the Bellwether Canadian Stock Fund were each established by Declarations of Trust dated May 19, 2006 and commenced operations on December 8, 2006. The address of the Fund's registered office is 1267 Cornwall Road, Suite 202, Oakville, Ontario, L6J 7T5.

The Funds invest in publicly traded equity securities of companies listed on a recognized stock exchange in Canada.

National Bank Financial Inc. is the Custodian of the Funds. SGGG Fund Services Inc. is the recordkeeper and valuation services agent for the Funds.

Bellwether Investment Management Inc. (the "Manager" or the "Trustee") is the manager and trustee of the Funds.

2 Basis of Presentation

These interim financial statements have been prepared in compliance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). The Fund reports under this basis of accounting as required by Canadian Securities Legislation and Canadian Accounting Standards Board. These interim financial statements should be read in conjunction with annual financial statements for the year ended December 31, 2018 which have been prepared in accordance with IFRS.

These financial statements have been prepared on a historical cost basis, except for financial assets and financial liabilities at fair value through profit or loss which are presented at fair value. The policies applied in these financial statements are based on IFRS issued and outstanding as of August 15, 2019 which is the date on which the financial statements were authorized for issue by the Trustee.

3 Summary of Significant Accounting Policies

Recent and Revised IFRS Issued

The final version of IFRS 9, Financial Instruments ("IFRS 9"), was issued by the IASB in July 2014 and has replaced IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classification and measurement, a single, forward-looking `expected loss' impairment model and a substantially reformed approach to hedge accounting. The new single, principle based approach for determining the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments, which will require more timely recognition of expected credit losses. It also includes changes in respect of own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity's own credit risk on such liabilities are no longer recognised in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018 and has been applied by the Fund retrospectively to January 1, 2017. The application of IFRS 9 has not resulted in any restatement of comparative figures.

Valuation of Investments The fair value of financial assets and financial liabilities traded in active markets (such as publicly traded derivatives and trading securities) is based on quoted market prices. In accordance with the provisions of the Fund's Offering Memorandum, investment positions are valued based on the last traded market price for the purpose of determining the net asset per unit for subscriptions and redemptions. For financial reporting purposes, the Fund uses the last traded market price for both financial assets and financial liabilities where the last traded price falls within that day's bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances. When the Fund holds derivatives with offsetting market risks, it uses mid-market prices as a basis for establishing fair values for the offsetting risk positions and applies this bid or ask price to the net open position, as appropriate.

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