Quarterly Fund Commentary

The imaxx Canadian Equity Value Fund returned 3.87%, net of expenses, outperforming the S&P/TSX Composite Index by 3.14% for the first three months of the year. A rally in the banking group contributed to the portfolio's outperformance. TD Bank and CIBC made the leading contributions to performance. A price recovery in telecommunication services stocks also enhanced portfolio performance. Oil and gas stocks underperformed during the quarter despite slightly higher crude oil prices. Natural gas prices, however, dropped on abundant inventory levels, greater drilling activity and producer hedging. The portfolio's three integrated oil companies' earnings were hurt by weak refining margins. Suncor Energy was further troubled by two recent upgrader fires, causing management to guide production levels lower for the year. Moreover, the integration of Petro-Canada's assets continued to weigh on the stock in the short-term. Shares of Power Corporation of Canada were added to the portfolio. Shoppers Drug Mart Corp. was also added to the portfolio. Shoppers' price-to-earnings multiple has been on the decline, because impending legislation in Ontario may have a negative effect on its prescription drug revenue. However, its dominant market share and enhanced business model are expected to improve long-term shareholder value. The fund's position in Canadian National Railway Company was eliminated for valuation reasons. Bell Alliant Income Fund units were also sold.

OVERALL PAST PERFORMANCE

This graph shows how a $10,000 investment in this fund would have changed in value compared with the S&P/TSX Total Return.

Compare With Peer
Initial Investment Amount
Include Benchmark Yes  No
Time Frame Start
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*For illustration purposes only. Includes mutual/pooled fund performance as indicated. Actual fund performance could be expected to vary.

Compound Returns and Quartile Rankings (as at July 31, 2010)

This table shows the historical annual compound total return of the fund compared with the S&P/TSX Total Return.
1 Month 3 Months 6 Months 1 Year 3 Year Avg 5 Year Avg 10 Year Avg Since Inception
Qrtl 1 1 1 2 2 3 - -
Return 5.06% -2.53% 5.64% 9.44% -5.33% 0.67% - 4.60%
Grp Avg 4.10% -4.41% 2.65% 7.59% -5.97% 1.24% 3.52% -
Ind Ret 3.96% -3.38% 7.04% 11.68% -2.58% 5.18% 3.46% -
Ind Peer Ret 4.10% -4.38% 2.69% 7.71% -5.86% 0.74% 2.30% 3.81%

Portfolio as at July 31, 2010

Sectors as at July 31, 2010

Geographic as at July 31, 2010

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the imaxxFund Simplified Prospectus before investing. Unless otherwise indicated and except for returns of less than one year, the indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

The breakdown of fund investments is presented to illustrate how the fund may invest and may not be indicative of the fund’s current or future investments. The fund’s investments may change at any time in accordance with its objective and strategy. Top 10 holdings exclude securities with maturities of less than one year. ® AEGON is a registered trademark of AEGON N.V. AEGON Fund Management INC. is licensed to use such trademark. TM imaxx, imaxxFunds, i plan to succeed, imaxxWealth and the imaxx logo are trademarks of AEGON Fund Management Inc.


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