Management's Report

The summary consolidated financial statements of LS Mutual Management contained in this annual report are the responsibility of management and have been approved by the Board of Directors. They have been derived from the consolidated financial statements of LS Mutual Management.

The Corporation has an adequate internal control and auditing system, within acceptable cost limits. The purpose of these mechanisms is to ensure a reasonable degree of certainty that financial transactions are correctly recorded and carried out with the required authorization, that the financial statements are properly prepared, and that assets are well protected.

The Board of Directors fulfils its responsibilities with regard to financial reporting primarily through its Audit Committee, composed entirely of independent directors, which meets periodically with management and the independent auditor. The independent auditor may, at its discretion, meet with the Audit Committee, in the presence or absence of management, to discuss matters pertaining to auditing and financial reporting.

On behalf of management,

Richard Gagnon, F.Adm.A.
President and Chief Executive Officer

Saint-Hyacinthe, February 26, 2015

Jocelyne Desloges, CPA, CA, MBA, FLMI, ACS, AIAA, ARA
Vice-President, Finance and Administration

Saint-Hyacinthe, February 26, 015