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Common Sense Investing Guarantees on capital or income Back to basics investment strategies Turn-key portfolio solutions PRO SSQ Guaranteed Investment Portfolios were designed to address the main concerns of today s investor who are looking for downside protection from one-stop investment portfolio solutions they can understand. It s as simple as that. The four PRO SSQ Guaranteed Investment Portfolios are available for our ASTRA Guaranteed Income product. ASTRA Guaranteed Income offers you peace of mind and a secure retirement Retirement is a growing concern for most investors. You yourself may be wondering if you have enough savings set aside to last you through your retirement years. You may also be concerned about the impact of market fluctuations that will affect your savings in the years leading up to your retirement. You are quite right to be concerned! Perhaps you re thinking about taking your money out of equity markets, but you re not sure which kind of investment vehicle would be both profitable AND secure. The ASTRA Guaranteed Income product is a segregated fund investment that provides an annual income amount. As such, it offers the same benefits as an investment in funds, including flexibility, return potential, etc. Because it offers a minimum guaranteed income for life, the ASTRA Guaranteed Income product also combines the benefits traditionally associated with annuities such as secure income and protection of capital. The ASTRA Guaranteed Income product offers you a turnkey solution that will help you to secure the retirement of your dreams!
PRO SSQ Guaranteed Investment Portfolios PRO SSQ Guaranteed Investment Portfolios are one-stop portfolio solutions that are available for investors of all risk-p profitable companies. Each portfolio is automatically rebalanced. It s as simple as that. Fund Allocation Relative Risk and Objective F PRO SSQ Conservative PRO SSQ Balanced PRO SSQ Growth PRO SSQ Aggressive 65% Fixed Income 13% Canadian Equity 8% US Equity 8% International Equity 4% Emerging Markets Equity 2% Hong Kong China Equity 40% Fixed Income 22% Canadian Equity 14% US Equity 14% International Equity 7% Emerging Markets Equity 3% Hong Kong China Equity 30% Fixed Income 26% Canadian Equity 17% US Equity 17% International Equity 7% Emerging Markets Equity 3% Hong Kong China Equity 20% Fixed Income 28% Canadian Equity 20% US Equity 20% International Equity 8% Emerging Markets Equity 4% Hong Kong China Equity This fund may be appropriate for conservative investors who can tolerate minor to medium volatility. The investment objective is to generate regular income with a focus on preservation of capital. The fund is invested mainly in fixed-income Canadian securities issued by federal, provincial and municipal governments as well as blue chip companies. It is also invested in the highest quality equities of Canadian, U.S and international companies. This fund may be appropriate for moderate investors who can tolerate medium levels of portfolio volatility. The investment objective is to generate regular income and a balance between capital preservation and long term growth. The fund is invested mainly in the highest quality equities of Canadian, U.S and international companies. It is also invested in fixed-income Canadian securities issued by federal, provincial and municipal governments as well as blue chip companies. This fund may be appropriate for growth oriented investors who can tolerate mediumhigh levels of volatility. The investment objective is to generate long-term capital growth. The fund is invested mainly in the highest quality equities of Canadian, U.S and international companies. It is also invested in fixed-income Canadian securities issued by federal, provincial and municipal governments as well as blue chip companies. This fund may be appropriate for aggressive investors who can tolerate high levels of volatility. The investment objective is to generate maximum long-term capital growth. The fund is invested mainly in the highest quality equities of Canadian, U.S and international companies. It is also invested in fixed-income Canadian securities issued by federal, provincial and municipal governments as well as blue chip companies. Conservative Fundamental Index Portfolio: 65%, 13% FTSE RAFI Canada Index, 8% FTSE RAFI US 1000 Index (C$), 8% FTSE RAFI Developed ex US : 65% DEX Universe, 13% S&P/TSX, 8% S&P 500 (C$), 8% MSCI EAFE & Canada (C$), 4% MSCI Emerging Markets (C$), 2% MSCI Hong Kong (C$) Balanced Fundamental Index Portfolio: 40%, 22% FTSE RAFI Canada Index, 14% FTSE RAFI US 1000 Index (C$), 14% FTSE RAFI Developed ex US 1 : 40% DEX Universe, 22% S&P/TSX, 14% S&P 500 (C$), 14% MSCI EAFE & Canada (C$), 7% MSCI Emerging Markets (C$), 3% MSCI Hong Kong (C$) Growth Fundamental Index Portfolio: 30%, 26% FTSE RAFI Canada Index, 17% FTSE RAFI US 1000 Index (C$), 17% FTSE RAFI Developed ex US 100 : 30% DEX Universe, 26% S&P/TSX, 17% S&P 500 (C$), 17% MSCI EAFE & Canada (C$), 7% MSCI Emerging Markets (C$), 3% MSCI Hong Kong (C$) Aggressive Fundamental Index Portfolio: 20%, 28% FTSE RAFI Canada Index, 20% FTSE RAFI US 1000 Index (C$), 20% FTSE RAFI Developed ex US : 20% DEX Universe, 28% S&P/TSX, 20% S&P 500 (C$), 20% MSCI EAFE & Canada (C$), 8% MSCI Emerging Markets (C$), 4% MSCI Hong Kong (C$)
profiles: Conservative to Aggressive. These portfolio funds are globally diversified and focus on holding today s most Fund Code Back-load: 0612 No-load - Mode A: 1612 Front-load: 2612 No-load - Mode B: 3612 Back-load: G0612 No-load - Mode A: G1612 Front-load: G2612 No-load - Mode B: G3612 MER and Guarantee Fees MER: 2.47% (including taxes) Premium Guarantee Fee: 0.62% AGI Guarantee Fee: 0.45% Growth of invested in various portfolios containing Fundamental Indexes as at June 30, 2009 june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 june-00 june-01 june-02 june-03 june-04 Conservative Fundamental Index Portfolio june-05 june-06 june-07 june-08 june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 june-00 Conservative june-01 june-02 Fundamental june-03 Index june-04 Portfolio june-05 june-06 june-07 june-08 Conservative Fundamental Index Portfolio Conservative Fundamental Index Portfolio Back-load: 0613 No-load - Mode A: 1613 Front-load: 2613 No-load - Mode B: 3613 Back-load: G0613 No-load - Mode A: G1613 Front-load: G2613 No-load - Mode B: G3613 Back-load: 0614 No-load - Mode A: 1614 Front-load: 2614 No-load - Mode B: 3614 Back-load: G0614 No-load - Mode A: G1614 Front-load: G2614 No-load - Mode B: G3614 Back-load: 0615 No-load - Mode A: 1615 Front-load: 2615 No-load - Mode B: 3615 MER: 2.52% (including taxes) Premium Guarantee Fee: 0.62% AGI Guarantee Fee: 0.55% MER: 2.57% (including taxes) Premium Guarantee Fee: 0.62% AGI Guarantee Fee: 0.75% 1000 Index (C$), 7% FTSE RAFI Emerging Index (C$), 3% FTSE RAFI Hong Kong China Index (C$) 000 Index (C$), 7% FTSE RAFI Emerging Index (C$), 3% FTSE RAFI Hong Kong China Index (C$) S 1000 Index (C$), 8% FTSE RAFI Emerging Index (C$), 4% FTSE RAFI Hong Kong China Index (C$) june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 june-00 june-01 june-02 june-03 june-04 Balanced Fundamental Index Portfolio june-05 june-06 june-07 june-08 june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 june-00 Balanced june-01 Fundamental june-02 june-03 Index Portfolio june-04 june-05 june-06 Blended june-07 Benchmark june-08 Balanced Fundamental Index Portfolio Balanced Fundamental Index Portfolio $14,170 $14,170 $14,170 june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 $14,170 june-00 june-01 june-02 june-03 june-04 Growth Fundamental Index Portfolio june-05 june-06 june-07 june-08 june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 june-00 Growth june-01 Fundamental june-02 june-03 Index Portfolio june-04 june-05 june-06 Blended june-07 Benchmark june-08 Growth Fundamental Index Portfolio Growth Fundamental Index Portfolio MER: 2.63% (including taxes) Premium Guarantee Fee: 0.75% Back-load: G0615 $13,377 No-load - Mode A: G1615 AGI Guarantee Fee: 0.85% $13,377 Front-load: G2615 $13,377 june-00 june-01 june-02 june-03 june-04 june-05 june-06 june-07 june-08 $13,377 No-load - Mode B: G3615 june-00aggressive june-01 june-02 Fundamental june-03 Index june-04 Portfoliojune-05 june-06 Blended june-07 Benchmark june-08 june-00 Aggressive june-01 june-02 Fundamental june-03index june-04 Portfolio june-05 june-06 Blended june-07 Benchmark june-08 june-00 june-01 june-02 june-03 june-04 june-05 Aggressive Fundamental Index Portfolio june-06 june-07 june-08 Aggressive Fundamental Index Portfolio S 1000 Index (C$), 4% FTSE RAFI Emerging Index (C$), 2% FTSE RAFI Hong Kong China Index (C$)
Getting Back to Fundamentals While different economies have different risk levels, the lowest risk equity entry point into any economy is to hold a well diversified balanced portfolio of the fundamentally strongest stocks in that market. PRO SSQ Guaranteed Investment Portfolios are designed to automatically select the strongest fundamental stocks through a patent pending methodology. It uses a disciplined mathematical approach which eliminates manager, regional or sectoral bias. PRO SSQ Guaranteed Investment Portfolios are designed to replicate the performance results of the FTSE RAFI Indexes (net of expenses). Using the Fundamental Indexation methodology developed by Research Affiliates (RA) LLC the index breaks with the traditional price-based market capitalization-weighted design, and instead derives its constituent weights from company fundamentals. The methodology uses the audited dollar values of cash flow, book value, total sales and gross dividends to derive equal constituent index weights. Prices, which can be prone to speculation, are not a component of the weights. As the fundamental weightings are annually reviewed, the constituent weights are less affected by market bubbles that can over-expose an investor to individual companies, sectors or countries. What you are left with is a portfolio of the fundamentally strongest stocks in the world. Traditional Index Fundamental Index Overweights ALL overpriced stocks Yes No Underweights ALL underpriced stocks Yes No Substantial growth bias Yes No Majority of turnover in smaller, higher cost names Yes No Susceptible to changes in market prices not supported by issuer fundamentals Yes No Fully participates in market bubbles Yes No FTSE RAFI For The Last 22 Years in Canada... Growth of From 1987 to 2008 (Canada) Logarithmic Scale Jan 1st, 1987 to Dec 31st, 2008 FTSE RAFI Canada Total Return Index: $106,480 S&P/TSX Composite Total Return Index: $49,738 11.35% Annualized 7.56% Annualized 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
PRO SSQ Guaranteed Investment Portfolios About Pro-Financial Asset Management Pro-Financial Asset Management is excited to have partnered with the world renowned FTSE Group and Research Affiliates (RA) to bring the FTSE RAFI Fundamental Index methodology to Canadian investors. About FTSE Group FTSE is an independent company owned by The Financial Times and the London Stock Exchange. A world-leader in the creation and management of indices, FTSE s sole business is the creation and management of indices and associated data services, on an international scale. It is estimated that US$2.5 trillion of assets are under management using FTSE indices. About Research Affiliates Dedicated to solving complex investment issues, Research Affiliates (RA) creates innovative strategies that respond to the current needs of the market. RA offers proprietary solutions in the areas of active asset allocation, optimal portfolio construction, equity indexation and enhanced equity indexation. Over $30 billion in assets are managed using investment strategies developed by Research Affiliates. About SSQ SSQ Financial Group is one of Canada s leading financial institutions with over one million clients, more than 1,500 employees and $4 billion in assets under management. SSQ Financial Group is renowned for its expertise, with over 30 years of experience in the field of investment and retirement products. PRO SSQ Guaranteed Investment Portfolios are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited, by the London Stock Exchange, by The Financial Times Limited or by Research Affiliates. None of these parties offer any guarantee whatsoever as to the results to be obtained from the use of the FTSE RAFI Indexes and none of the parties shall be liable for any error in the Index. FTSE is a trademark of the Exchange and the FT, Research Affiliates and Fundamental Index are trademarks of RA and all such trademarks are used by FTSE under licence. Any amount allocated to a segregated fund is invested at the risk of the contract-holder and may increase or decrease in value. The returns shown do not take into account sales, redemption, distribution or other optional charges that would have reduced returns. Returns are annualized, except for periods of less than one year. Past returns are not a reliable indicator of future performance. This method of calculating returns is in compliance with the guiding principles established by the Canadian Life and Health Insurance Association. The performance statistics of the FTSE RAFI Indexes shown are for are illustrative purposes only and do not reflect the returns of the PRO SSQ Guaranteed Investment Portfolios. The FTSE RAFI Indexes statistics are gross of fees and do not incorporate any management fees or expenses associated with investing in the PRO SSQ Guaranteed Investment Portfolios. Please refer to the Information Folder for details. Investment and Retirement Montreal Office 1200 Papineau Ave, Suite 460 Montreal QC H2K 4R5 Tel.: 514-521-7365 1-800-361-8100 Fax: 1-866-606-2764 Quebec City Office 1245 Chemin Sainte-Foy, Suite 210 P.O. Box 10510, Station Sainte-Foy Quebec QC G1V 0A3 Tel.: 1-888-391-9299 Fax: 1-866-559-6871 www.investment.ssq.ca DRA1294A (2009-08)