Quarterly Fund Commentary

The imaxx U.S. Equity Value Fund returned -0.31%, net of expenses, underperformed the S&P 500 Composite Total Return Index (in Canadian dollar terms) return of 2.27% for the first quarter of 2010. A strong upward move in banking stocks was the major drag on performance during the quarter, because we continue not to hold major banks. We believe that bank stocks are still a few years away from generating a level of earnings that would support current share valuations. Holdings in AT&T also lagged behind the general market advance. However, better news on the economic front positively impacted portfolio holdings Home Depot and Eaton Corp. Nabors, an on-shore driller, was sold for valuation reasons. It was replaced by Transocean, an off-shore driller. We continue to find value stocks in the health care, energy and utilities sectors. We believe, despite market noise, that the recently passed health care reform will be a net benefit for healthcare stocks because healthcare spending will not likely be reduced. High-quality defensive stocks that pay attractive dividend yields remain the core positions in the portfolio.

OVERALL PAST PERFORMANCE

This graph shows how a $10,000 investment in this fund would have changed in value compared with the S&P 500 Composite Total Return Idx($Cdn).

Compare With Peer
Initial Investment Amount
Include Benchmark Yes  No
Time Frame Start
End

*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 500 Composite Total Return Idx($Cdn).
1 Month 3 Months 6 Months 1 Year 3 Year Avg 5 Year Avg 10 Year Avg Since Inception
Qrtl 2 1 4 3 4 4 - -
Return 3.90% -5.26% -3.44% 3.21% -13.97% -8.96% - -5.58%
Grp Avg 4.02% -6.91% -0.35% 6.91% -10.29% -5.56% -5.12% -
Ind Ret 3.82% -5.09% 0.11% 8.56% -7.86% -3.61% -4.35% -
Ind Peer Ret 4.02% -6.85% -0.37% 6.80% -10.18% -5.45% -5.81% -2.84%

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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