15 February 15 August. Expense Type % B C G ACD s periodic charge Other expenses Ongoing charges figure

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1 CF Canlife Corporate Bond Fund a sub-fund of CF Canada Life Investments Fund ACD s Annual Short Report for the period from 26 May 2012 to 15 August 2013 Investment Objective and olicy The investment objective of the CF Canlife Corporate Bond Fund ( the Fund ) is to maximize returns and to provide shareholders with a half-yearly income mainly from investment in sterling-denominated fixed income securities. The Fund may also invest in collective investment schemes, cash, money market instruments, other transferable securities and derivatives and forward transactions for the purposes of Efficient ortfolio Management. Risk rofile Fixed interest securities are particularly affected by trends in interest rates and inflation. If interest rates go up, the value of the capital may fall and vice versa. Inflation will also decrease the real value of capital. The Manager reviews the policies for managing these risks in order to follow and achieve the Investment Objective as summarised above. Accounting and Dates Interim Final Accounting 15 February 15 August 15 April 15 October Ongoing Charges Figure Expense Type % B C G ACD s periodic charge Other expenses Ongoing charges figure CF Canlife Corporate Bond Fund 1

2 Synthetic Risk and Reward Indicator B Accumulation shares Typically lower rewards Typically higher rewards Lower risk Higher risk # 2013* rice rice This indicator shows how much a fund has risen and fallen in the past, and therefore how much a fund s returns have varied. It is a measure of a fund s volatility. The higher a fund s past volatility the higher the number on the scale and the greater the risk that investors in that fund may have made losses as well as gains. The lowest number on the scale does not mean that a fund is risk free. The Fund has been classed as 4 because its volatility has been measured as average. This indicator is based on historical data and may not be a reliable indication of the future risk profile of the Fund. The risk and reward profile shown is not guaranteed to remain the same and may shift over time. s Share Class B Income B Accumulation 'C' Income 'C' Accumulation G Accumulation erformance Record B Income shares 2012# 2013* First Interim pence rice Second Interim pence rice Final pence C Income shares rice rice 2013## C Accumulation shares rice rice 2013## G Accumulation shares 2012# 2013* # From 26 May ## From 18 March to 15 August * To 15 August rice rice CF Canlife Corporate Bond Fund CF Canlife Corporate Bond Fund 3

3 Net Asset Value Sector Spread of Investments Date Share Class Net Asset Value Shares in Issue Net Asset Value pence Net other assets 0.82% Money Markets 2.14% Government Bonds 3.87% B Income B Accumulation C Income C Accumulation G Accumulation 32,406,360 1,966, , ,597,595 16,459, , ,231 96,169, Fund erformance to 15 August 2013 (%) 1 year Since launch* CF Canlife Corporate Bond Fund * Launch date 26 May The performance of the Fund is based on the published price per B Accumulation share which includes reinvested income. Risk Warning lease remember that past performance should not be seen as a guide to future performance and that the value of an investment and the income from it can fall as well as rise and may be affected by exchange rate variations. Major Holdings The top ten holdings at the end of the period are shown below. Holding Corporate Bonds 93.17% Treasury 4% 2022 National Grid Gas 8.75% 2025 HSBC Holdings 5.75% 2027 Barclays Bank 10% 2021 Gatwick Funding 5.25% 2024 Merrill Lynch & Company 5.5% 2021 DWR Cymru Financing 6.015% 2028 Society of Lloyd s 6.875% 2025 JMorgan Chase Bank 5.375% 2016 Treasury 4.5% 2019 % of Fund as at CF Canlife Corporate Bond Fund CF Canlife Corporate Bond Fund 5

4 ACD S REORT for the period from 26 May 2012 to 15 August 2013 Important Information As a result of a scheme of arrangement, effective on 26 May 2012 the Fund received the property of the CF Canlife Bond Unit Trust. Effective 15 January 2013, the following changes took place in relation to the G Accumulation shares for new investors from that date: The investment minima increased from 20,000,000 to 50,000,000. On 18 March 2013 two new share classes, C Income shares and C Accumulation shares were launched in the Fund. Effective 18 September 2013, the regular savings plan in respect of class C shares is no longer available. Further details are available in the latest scheme rospectus. Capita Financial Managers Limited ACD of CF Canlife Corporate Bond Fund 13 December 2013 INVESTMENT MANAGER S REORT for the period from 26 May 2012 to 15 August 2013 Economy There is now a growing consensus that the UK economy has turned the corner. Recent MI surveys for Manufacturing, Construction & Services all point to growing confidence among businesses. Consumer confidence is also steadily improving, as indicated by rising house prices in the Nationwide and Halifax housing surveys, and by strong new car registrations. Overall, GD is reported to have grown by 0.7% in the second quarter of the year, with stronger figures expected for the third quarter. In this, the UK is following the USA, where confidence has been returning for some time. The signs of recovery leave central bankers in those countries with the dilemma of when to start to reverse the loose monetary policies that have been followed since the Credit Crisis. While we expect policymakers to move cautiously, bond markets have been retreating from the low yield levels seen in recent years. Investors have also become more relaxed about the eurozone and less concerned to hold on to safe haven assets. Sterling Corporate Bond Market Over the period 26 May 2012 to 15 August 2013 corporate bonds performed well, with the iboxx Sterling Corporates Index seeing a total return of 11.1%*. In contrast, UK government bonds were weak, with the iboxx Sterling Gilts Index seeing a total return of -3.4%* over the period. The additional yield over UK government bonds, or spread, on the iboxx Sterling Corporates Index fell from 3.0%* to 1.6%* over the period. Corporate bonds performed particularly strongly in the second half of 2012, while the performance from the start of 2013 to 15 August 2013 has been more modest, with the iboxx Sterling Corporate Index returning 1.1%* over this period as the iboxx Sterling Gilts Index returned -3.1%*. The main driver of the performance of corporate bonds has been central bank action. ersistently low interest rates, Quantitative Easing in the UK, US and Japan, Long Term Refinancing Operations in the eurozone, and the European Central Bank s announcement that outright purchases of peripheral sovereign bonds could be employed, all drove investors out of cash and government bonds and into riskier assets, including corporate bonds. Trading Activity Going into the summer of 2012, a key theme was to sell some of our holdings in Spanish and Italian corporate bonds and replace them with financial bonds. This reduced our exposure to the risk of a eurozone meltdown while maintaining, and in some cases improving, the yield on the portfolio. In particular we added US banks, as we believe that they are further through the process of cleaning up their balance sheets than European banks and are now making new loans on good margins. We also added a number of insurance company bonds, where yields on offer were comparable to bank bonds but we view the businesses to be inherently more stable, with low risk asset portfolios and limited exposure to liquidity shocks. Another theme in our trading activity was to sell utilities exposed to falling European power prices, and to buy more stable regulated utilities in the UK, which we were able to do without sacrificing yield. We have also added to bonds issued by UK retailers in order to take advantage of the positive outlook for the UK economy. Strategy & Outlook With the strong performance of corporate bonds over the period spreads on the iboxx Corporate Index are now about 30bps lower than the 10 year average. Based on this measure corporate bonds do not look cheap; however it is worth noting that this 10 year period includes the global financial crisis where spreads were at historically high levels. Therefore we expect that corporate bonds will continue to outperform gilts as economic conditions improve. Given the recent performance, the potential for corporate bonds is more limited so returns over the 6 CF Canlife Corporate Bond Fund CF Canlife Corporate Bond Fund 7

5 Investment Manager s Report (continued) Strategy & Outlook (continued) next year are likely to be more modest. While we continue to prefer the long term economic prospects for the US and the UK versus the eurozone, we recognise that stability is returning to that area and we will look to invest there if suitable opportunities arise. * Source: iboxx. Canada Life Asset Management Limited Investment Manager 6 September 2013 Buying and Selling Shares The ACD will accept orders to deal in the shares on normal business days between 8.30am and 5.30pm and transactions will be effected at prices determined by the following valuation. Instructions to buy or sell shares may be either in writing to: 2 The Boulevard, City West One Office ark, Gelderd Road, Leeds LS12 6NT or by telephone on A contract note will be issued by close of business on the next business day after the dealing date to confirm the transaction. Reports and Accounts This document is a short report of the CF Canlife Corporate Bond Fund for the period from 26 May 2012 to 15 August The full Report and Accounts for the Fund is available free of charge upon written request to Capita Financial Managers Limited, Ibex House, Minories, London EC3N 1DX and can be found on our website, by following the link Fund Information. Other Information The information in this report is designed to enable you to make an informed judgement on the activities of the Fund during the period it covers and the results of those activities at the end of the period. 8 CF Canlife Corporate Bond Fund CF Canlife Corporate Bond Fund 9

6 Ibex House, Minories, London EC3N 1DX T F

7 AUTHORISED CORORATE DIRECTOR ( ACD ) Capita Financial Managers Limited Head Office: Ibex House Minories London EC3N 1DX Telephone: Fax: enquiries@capitafinancial.com DIRECTORS OF THE ACD C. Addenbrooke N. Boyling C. Hayes K.J. Midl J.E. Millan REGISTRARS Capita Financial Administrators Limited Customer Service Centre: 2 The Boulevard City West One Office ark Gelderd Road Leeds LS12 6NT Telephone: Fax: INDEENDENT AUDITOR Ernst & Young LL 1 More London lace London SE1 2AF INVESTMENT MANAGER Canada Life Asset Management Limited Canada Life lace High Street otters Bar Hertfordshire EN6 5BA DEOSITARY BNY Mellon Trust & Depositary (UK) Limited The Bank of New York Mellon Centre 160 Queen Victoria Street London EC4V 4LA 1191 SF 15/12/2013