Enhancements to the BlackRock Canada LifePath and Balanced Index funds September 30, 2013

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1 Enhancements to the BlackRock Canada LifePath and Balanced Index funds September 30, 2013 Plan sponsors may wish to consider whether this investment update has any implications for the investment options available within their plan. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada). BlackRock Asset Management Canada Limited (BlackRock) will be making changes to the BlackRock LifePath Index funds and BlackRock Balanced Index funds, described in further detail below. BlackRock expects these changes to increase the investment and operational efficiencies of these strategies by implementing the most appropriate asset class exposures through the most appropriate investment vehicles available. BlackRock LifePath Index Series of Target Date Funds The change to the benchmark for underlying long bond exposure is expected to occur on or around November 29, Certain BlackRock LifePath Index Funds invest in units of the BlackRock Canada Long Bond Index Fund (the Fund ); currently this excludes all bonds rated "BBB" or lower. The Fund is changing its benchmark to the DEX Long Term Bond Index, which includes all investment grade bonds, including bonds rated "BBB". This change is intended to help the Fund capture the full investment grade opportunity set of the DEX Long Term Bond Index, a benefit which BlackRock expects will extend to the LifePath Funds through its investment in units of the Fund. As of July 31, 2013, "BBB"- rated bonds made up 7.7% of the DEX Long Term Bond Index. The Fund will also aim to match the benchmark allocation to "BBB" rated securities. Reminder of target date fund maturity process BlackRock and Sun Life Financial reminds plan sponsors who offer the BlackRock LifePath Index 2010 Retirement Fund that this fund is still expected to merge with the BlackRock LifePath Index Retirement Fund I on or before December 31, 2014, as previously communicated. As the BlackRock LifePath Index 2010 Retirement Fund was the first fund in the LifePath series to reach its target date, BlackRock provided a grace period of up to five years to help taxable investors manage their withdrawals over time. Going forward, BlackRock expects to merge the applicable maturing fund with the BlackRock LifePath Index Retirement Fund I on or before December 31 of the year immediately preceding the applicable fund s target date. For example, the BlackRock LifePath Index 2015 Fund is currently expected to merge with the BlackRock LifePath Index Retirement Fund on or before December 31, How will these changes impact you and your plan members? No action is required by you or your plan members as a result of the long bond change, or when a fund reaches its maturity year. Going forward, the maturing fund will automatically transfer to the BlackRock LifePath Retirement Fund which has the most conservative investment mix available in the target date fund series. This investment mix of the Retirement Fund is designed to provide income and moderate long-term growth of capital for investors beginning to withdraw their money.

2 BlackRock Balanced Index Series of Target Risk Funds Real Estate: The change of investment vehicle and index is expected to occur on or around November 29, The three BlackRock Balanced Index Funds: Conservative, Moderate and Aggressive, currently achieve their exposure to the real estate asset class by investing in ishares ; exchange-traded funds (ETFs) managed by BlackRock or its affiliates, specifically in the ishares S&P /TSX Capped REIT Index Fund (ticker XRE) and ishares Dow Jones U.S. Real Estate Index Fund (IYR). BlackRock will expand the opportunity set within this asset class by moving from the current North-American exposure to a global approach. Consequently, the holdings in XRE and IYR are expected to be redeemed and exchanged for exposure to the global REITs asset class by investing in units of a pooled fund called the BlackRock CDN Global Developed Real Estate Index Fund, which tracks the FTSE EPRA/NAREIT Developed Index. This enhancement is expected to increase efficiency and improve tracking against each Balanced Index Fund s respective benchmark, as well as broadening REIT exposures in each Balanced Index Fund. This same change was implemented to the LifePath Series of Target Date Funds in August 2012 and resulted in improved tracking versus the benchmark and a reduced fund management fee, as detailed below. How will this change impact you and your plan members? The ETF fees associated with the real estate asset class, which are reported as part of the fund management fees (FMFs) disclosures, are expected to be reduced, with the move away from ETFs into a pooled fund for real estate. BlackRock will continue to use ETFs for other areas such as emerging markets equities, citing the preference for liquidity and transparency which the ETFs provide as compared to investing directly in a pooled index fund. Questions? Please contact your Sun Life Financial Group Retirement Services representative. 2

3 Enhancements to the BlackRock Canada LifePath Index funds July 16, 2012 Plan sponsors may wish to consider whether this investment update has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada). On May 31, 2012, BlackRock Asset Management Canada Limited (BlackRock) announced that it is planning to make enhancements to the BlackRock Canada LifePath Index Funds (LifePath Funds) in late July or early August of BlackRock believes these enhancements to the funds will result in increased efficiency, better asset class exposures and overall improved tracking. Below is a summary of the planned enhancements: 1. Real estate and infrastructure: Change of index and investment vehicle Real estate The LifePath Funds currently achieve their exposure to the real estate asset class by investing in ishares exchange-traded funds (ETFs) managed by BlackRock or its affiliates, specifically in the ishares S&P /TSX Capped REIT Index Fund (ticker: XRE) and the ishares Dow Jones US Real Estate Index Fund (IYR). BlackRock will expand the opportunity set within this asset class by moving from the current North-American exposure to a global approach. Consequently, the holdings in XRE and IYR are expected to be redeemed and exchanged for exposure to the global REITs asset class by investing in a soon-to-be launched pooled fund benchmarked to the FTSE EPRA/NAREIT Developed Index. This new pooled fund is expected to provide an efficient implementation for this expanded asset class. Infrastructure The LifePath Funds currently achieve their exposure to the infrastructure asset class by investing in the ishares S&P Global Infrastructure Index Fund (IGF) and the ishares S&P Global Utilities Index Fund (JXI). The holdings in IGF and JXI are expected to be redeemed and exchanged for exposure to the global infrastructure asset class by investing in a soon-to-be launched pooled fund benchmarked to the Dow Jones Brookfield Global Infrastructure Index. This new pooled fund is expected to provide an efficient implementation for this asset class. How will these changes impact you and your plan members? The ETF fees associated with the real estate and infrastructure asset classes, which are reported as part of the fund management fees (FMFs) disclosures, are expected to be reduced, with the move away from ETFs into pooled funds. BlackRock will continue to use ETFs for other areas such as emerging markets equities, citing the preference for liquidity and transparency which the ETFs provide as compared to investing directly in a pooled index fund. 2. Removal of currency hedging The LifePath Funds currently employ a currency hedging program which starts with a 0% hedge ratio at the longer-dated fund and increases to 50% at the BlackRock LifePath Index Retirement Fund level. BlackRock implements the currency hedging strategy by investing in the ishares S&P 500 Index Fund (CAD-Hedged) (XSP) and ishares MSCI EAFE Index Fund (CADHedged) (XIN). The recent review of currency hedging within the LifePath Funds suggests that since the financial crisis of 2008, there has been a profound change in the volatility of foreign securities and currencies. Looking at various perspectives on currency, equity market risk and correlations, BlackRock concluded that the case for Canadian investors hedging their foreign currency exposure has been greatly reduced. As such, BlackRock expects to wind down the currency hedging strategy and redeem their holdings in XSP and XIN, but continue to achieve the same equity exposure on an unhedged basis by investing in pooled funds. Although BlackRock currently do not expect to re-introduce the hedging program in the near term, the manager will continue to monitor developments in the currency markets to ensure that their hedging decision remains appropriate for the investment strategies of the LifePath Funds.

4 BlackRock Balanced Index Series of Target Risk Funds Real Estate: The change of investment vehicle and index is expected to occur on or around November 29, The three BlackRock Balanced Index Funds: Conservative, Moderate and Aggressive, currently achieve their exposure to the real estate asset class by investing in ishares ; exchange-traded funds (ETFs) managed by BlackRock or its affiliates, specifically in the ishares S&P /TSX Capped REIT Index Fund (ticker XRE) and ishares Dow Jones U.S. Real Estate Index Fund (IYR). BlackRock will expand the opportunity set within this asset class by moving from the current North-American exposure to a global approach. Consequently, the holdings in XRE and IYR are expected to be redeemed and exchanged for exposure to the global REITs asset class by investing in units of a pooled fund called the BlackRock CDN Global Developed Real Estate Index Fund, which tracks the FTSE EPRA/NAREIT Developed Index. This enhancement is expected to increase efficiency and improve tracking against each Balanced Index Fund s respective benchmark, as well as broadening REIT exposures in each Balanced Index Fund. This same change was implemented to the LifePath Series of Target Date Funds in August 2012 and resulted in improved tracking versus the benchmark and a reduced fund management fee, as detailed below. How will this change impact you and your plan members? The ETF fees associated with the real estate asset class, which are reported as part of the fund management fees (FMFs) disclosures, are expected to be reduced, with the move away from ETFs into a pooled fund for real estate. BlackRock will continue to use ETFs for other areas such as emerging markets equities, citing the preference for liquidity and transparency which the ETFs provide as compared to investing directly in a pooled index fund. Questions? Please contact your Sun Life Financial Group Retirement Services representative. 2

5 Barclays Global Investors Canada Limited maturity of BGI LifePath Index 2010 Retirement Segregated Fund November 4, 2009 Plan Sponsors may wish to consider whether this investment update has any implications for the investment options available within their plan. The Barclays Global Investors Canada Limited (BGI) LifePath Index 2010 Segregated Fund will mature on December 31, As each fund in the BGI LifePath Index suite approaches maturity, the asset mix of the BGI LifePath Index 2010 Segregated Fund will gradually change to match the BGI LifePath Index Retirement Fund I. Once matured, each BGI LifePath Index Segregated Fund s asset mix will remain static for five years, at which time the assets will be automatically transferred into the BGI LifePath Index Retirement Segregated Fund I. This means that the asset sweep for the BGI LifePath Index 2010 Fund will take place on or before December 31, The BGI LifePath Index Retirement Fund I is specifically designed for investors currently at or near retirement, which means the fund is seeking income and moderate long-term capital growth. The BGI LifePath Index Retirement Fund I holds approximately one-third of its assets in stocks and the remaining assets in bonds/money market instruments. Strategy for BGI LifePath Index 2010 Segregated Fund upon maturity On January 1, 2010, the name of the BGI LifePath Index 2010 Segregated Fund will change to the BGI LifePath Index 2010 Retirement Segregated Fund. The BGI LifePath Index 2010 Retirement Segregated Fund will have the same asset mix as the BGI LifePath Index Retirement Segregated Fund I for a period of five years thereafter. Plan members can continue invest assets into or remove assets from the BGI LifePath Index 2010 Retirement Segregated Fund until the fund merges with the BGI LifePath Index Retirement Segregated Fund I on or before December 31, What does this mean? On or before December 31, 2014, the BGI LifePath Index 2010 Retirement Segregated Fund will merge with the BGI LifePath Index Retirement Segregated Fund I and continue as a merged fund. Closer to the merger date, we will provide you and your plan members with further information as to any possible tax and other consequences that may occur as a result of the fund merger. This potential five year grace period (from ) provides plan members in the BGI LifePath Index 2010 Retirement Segregated Fund with the flexibility to manage their withdrawals of assets from the fund depending on their individual tax preferences. Sun Life Financial and BGI are committed to making the transition of the BGI LifePath Index 2010 Segregated Fund as smooth as possible for plan sponsors and their members.