Financial statements of - Global Growth

1 Financial statements of Capital Preservation fund December 31, 2012 and 2011 Capital Preservation fund December 31, 2012 and 2011 Table of contents Management s responsibility for Financial reporting .. 1 Independent Auditor s Report .. 2-3 statements of net assets .. 4 statements of operations .. 5 statements of changes in net assets .. 6 Statement of investments .. 7 Notes to the Financial statements .. 8-12 Management s responsibility for Financial reporting The accompanying Financial statements of the Capital Preservation fund (the fund ) are prepared by management and are approved by the Board of Directors of Global Growth Assets Inc.

2 Management is responsible for the information and representations contained in these Financial statements . The Board of Directors is responsible for reviewing and approving the Financial statements and overseeing management s performance of its Financial reporting responsibilities. Global Growth Assets Inc. maintains appropriate processes to ensure that relevant and reliable Financial information is produced. The Financial statements have been prepared in accordance with Canadian generally accepted accounting principles ( GAAP ) and include certain amounts that are based on estimates and judgments, as described in Note 2 to the Financial statements .

3 Deloitte LLP is the external auditor of the fund . It has audited the Financial statements in accordance with Canadian generally accepted auditing standards to enable it to express to the unitholders of the fund its opinion on the Financial statements . Its report is set out on the following pages. Sam Bouji Russell Mercado Chief Executive Officer Chief Financial Officer Toronto, Ontario March 25, 2013 Deloitte LLP Brookfield Place 181 Bay Street Suite 1400 Toronto ON M5J 2V1 Canada Tel: 416-601 -6150 Fax: 416-601 -6151 Independent Auditor s Report To the Unitholder of Capital Preservation fund We have audited the accompanying Financial statements of Capital Preservation fund which comprise the statement of investments as at December 31, 2012, the statements of net assets as at December 31, 2012 and December 31, 2011, and the statements of operations and changes in net assets for the years then ended, and a summary of significant accounting policies and other explanatory information.

4 Management's Responsibility for the Financial statements Management is responsible for the preparation and fair presentation of these Financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of Financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these Financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards.

5 Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether Financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial statements . The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Financial statements , whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

6 An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the Financial statements . We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Page 3 Opinion In our opinion, the Financial statements present fairly, in all material respects, the Financial position of Capital Preservation fund as at December 31, 2012 and 2011, and the results of its operations and changes in its net assets for the years then ended in accordance with Canadian generally accepted accounting principles.

7 Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants March 25, 2013 See accompanying notes to the Financial 4 Capital Preservation FundStatements of net assetsas at December 31, 2012 and 201120122011$$AssetsInvestments, at fair value (note 5)506,449 332,239 Cash22,112 14,985 Interest receivable2,417 1,409 Due from broker10,138 -541,116 348,633 LiabilitiesCurrent liabilitiesDue to broker10,172 -Management fee payable (note 7)734 513 10,906 513 Net assets representing unitholders' equity (note 3)530,210 348,120 Net assets per unit (note 4)

8 Approved by the Board of Directors ofGlobal Growth Assets Inc., the Manager of the Fund_____ DirectorSam BoujiChief Executive Officer_____ DirectorFrank GataveckasDirector of the BoardSee accompanying notes to the Financial 5 Capital Preservation FundStatements of operations years ended December 31, 2012 and 201120122011$$Investment incomeInterest income14,75613,73614,75613,736 Expenses (note 7)Audit fees36,87826,643 Accounting and valuation33,90034,785 Unitholder reporting costs9,6166,916 Management fees7,7187,179 Transaction fees2,0252,251 Custody fees1,7421,747 Independent review committee1,5691,000 Registration fees851872 Miscellaneous expenses1231,881 94,42283,274 Less.

9 Expenses reimbursed by the fund Manager (note 7)(86,704) (76,095) Expenses, net of reimbursements7,7187,179 Net investment income7,0386,557 Net gain on investmentsNet realized gain on sale of investments 9,9124,511 Change in unrealized (depreciation) appreciation of investments(7,285) 12,437 Net gain on investments2,62716,948 Increase in net assets from operations9,66523,505 Weighted average units outstanding for the year42,292 40,727 Increase in net assets from operations per See accompanying notes to the Financial 6 Capital Preservation FundStatements of changes in net assetsyears ended December 31, 2012 and 201120122011$$Net assets, beginning of year348,120 240,583 Increase in net assets from operations9,665 23.

10 505 Capital unit transactions (note 3)Proceeds from units issued 192,321 472,287 Reinvestment from distributions 17,164 6,542 Amount paid for redemptions (19,896) (388,255) Net capital unit transactions189,589 90,574 Distributions to unitholdersFrom investment income(7,053) (6,542) From net realized capital gains(10,111) -Net distributions to unitholders(17,164) (6,542) Increase in net assets for the year182,090 107,537 Net assets, end of year530,210 348,120 See accompanying notes to the Financial 7 Capital Preservation FundStatement of investments as at December 31, 2012 Principal Average Fairvaluecost value$$Bonds of Canada Housing Trust No.