Canada life segregated s Segregated funds information Investments tailored to protect you Includes general policy information
Table of contents Segregated funds policies and you... 3 Benefits of Canada Life segregated funds policies Choose your guarantee... 7 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy Add your options... 7 Maturity guarantee reset option Death benefit guarantee reset option Lifetime income benefit option Select the right funds for you... 8 -of-fund solutions Canada Life asset allocation funds Canada Life income allocation funds Managed fund solutions Core fund solutions Partner fund solutions Individual funds Cash and cash equivalents Fixed income Balanced Canadian Canadian specialty Foreign Foreign specialty Learn about managers Investment manager selection and review process Investment managers Investment-style grid... 29 Canadian funds Canada Life segregated funds correlation matrix April 30, 2013... 30 Glossary of terms... 32 2 THE CANADA LIFE ASSURANCE COMPANY
segregated information Segregated funds policies and you Reach your goals with s tailored to protect you Building an plan tailored for you requires two things: diversity and flexibility. Diversity: A key to managing your risk When you spread your s over different asset classes, you can lower expected risk and maintain expected returns. Diversification guided the creation of Canada Life segregated funds lineup. You re able to build a well-balanced plan with funds managed by some of the world s leading management companies. Flexibility: Match the right funds with the right guarantees With your advisor, you can choose the right s and guarantees to help achieve your financial goals. To help pick the right amount of protection for your segregated funds policy, Canada Life offers three levels of maturity and death benefit guarantees: 75/75 guarantee 75/100 guarantee 100/100 guarantee Protection of your wealth and estate Benefits of segregated funds policies Segregated funds policies are life insurance policies. This means segregated funds policies have benefits that help: Protect your privacy. These assets can go directly to your named beneficiaries, without being included in your estate. Protect the legacy you leave your family. When you name a beneficiary, these assets can bypass your estate and avoid the potential cost and delay of probate. Potentially protect your assets from creditors. This can be especially valuable if you own a business 1. Protect your principal. These policies guarantee 75 per cent or, if you choose, 100 per cent of your principal, at policy maturity or death. Provide a guaranteed income for life. You can choose to receive a guaranteed 2 income for life on selected policies. Protect your gains. With maturity and/or death benefit reset options, your guaranteed amounts can increase if the policy value rises. 1 Creditor protection depends on court decisions and applicable legislation, which can be subject to change and vary from each province. It can never be guaranteed. Talk to your lawyer to learn more about potential for creditor protection for your specific situation. 2 The lifetime income benefit offers a lifetime income amount, which will never decrease provided excess withdrawals are not taken. THE CANADA LIFE ASSURANCE COMPANY 3
Benefits of Canada Life segregated funds policies Create a Canada Life segregated funds policy tailored to meet your needs in three easy steps: STEP 1: STEP 2: STEP 3: Choose your guarantee you can select one of three guarantee levels to determine your maturity and death benefit guarantees. Add your options you may add maturity and death benefit guarantee reset options and the lifetime income benefit to your policy. Select the right funds for you choose from a variety of managed fund solutions or individual funds to customize an portfolio to meet your needs. Three levels of maturity and death benefit guarantees 3 75/75 guarantee 75/100 guarantee 75 per cent maturity guarantee and 75 per cent death benefit guarantee You re guaranteed to receive 75 per cent of all premiums contributed * At the maturity guarantee date On notification of death of the last annuitant 75 per cent maturity and 100 per cent death benefit guarantee At maturity guarantee date: 75 per cent of premiums contributed * On notification of death of the last annuitant: 100 per cent of premiums contributed are guaranteed. Premiums contributed when youngest annuitant is age 80 or older are subject to a graded death benefit guarantee schedule. 100/100 guarantee 100 per cent maturity and 100 per cent death benefit guarantee At maturity guarantee date: 100 per cent of premiums contributed for at least 15 years, and 75 per cent of premiums contributed for less than 15 years * On notification of death of the last annuitant: 100 per cent of premiums contributed to a policy * are guaranteed. Premiums contributed when youngest annuitant is age 80 or older are subject to a graded death benefit guarantee schedule. Automatic annual resets Capture market gains with automatic annual reset options. Maturity and death benefit guarantee reset options lock-in market gains and protect them during market downturns. 100/100 guarantee 75/100 guarantee 100/100 guarantee Maturity guarantee reset option: The value of the maturity guarantee is increased once a year if the policy market value is greater than the maturity guarantee amount. resets occur on each anniversary of the date the first premium was contributed to the policy until the last anniversary 15 years prior to the maturity guarantee date. additional fee applies. Death benefit guarantee reset option: the value of the death benefit guarantee is increased once a year if the policy market value is greater than the death benefit guarantee amount. resets occur on each anniversary of the date the first premium was contributed to the policy, up to the last anniversary prior to the youngest annuitant turning 70. Additional fee applies. 4 THE CANADA LIFE ASSURANCE COMPANY
segregated information Lifetime income benefit option Pricing options for affluent clients Preferred series 1 Preferred series 2 75/75 guarantee 75/100 guarantee 75/75 guarantee 75/100 guarantee 100/100 guarantee The lifetime income benefit allows you to plan or start your retirement income knowing what your annual lifetime income amount will be. this option is available to clients age 50 or older and can be added to 75/75 guarantee or 75/100 guarantee policies. features with this option may increase your annual guaranteed lifetime income amount, but will never decrease it provided your annual withdrawals do not exceed this amount. Income can be deferred or taken immediately. By selecting joint-life income, you and your spouse can receive guaranteed income for life Note: Lifetime income benefit option is not available with preferred series 1 and 2 pricing options. Note: Not all features and minimums listed here are available with preferred series pricing options. For more details, refer to Canada Life segregated funds information folder including preferred series 1 (46-7136) and Canada Life segregated funds, preferred series 2 information folder (46-8421). Preauthorized chequing (PAC) Multiple funds and managers Specialty funds -of-fund solutions Semi-annual statements To build your portfolio, you can regularly contribute using pre-authorized chequing, which automatically withdraws a specified amount from your bank account and transfers it to your policy. You decide the frequency weekly, bi-weekly, monthly, bi-monthly, semi-monthly, quarterly, semi-annually, annually. With one of the widest fund selections in the insurance industry, you can choose from some of the best managers in the world. Specialty funds such as Canadian resources and real estate increase diversification and can help to reduce risk in your portfolio when combined with other s. Canada Life s fund-of-fund solutions combine several funds to create a variety of portfolios to suit different risk tolerances. You can choose funds from the same manager or solutions containing multiple funds from several managers. You can track the performance of your segregated fund policy with detailed reports. * Reduced proportionately by any withdrawals. 3 features and guarantees vary by policy and age of annuitant and some limitations apply. Maturity and death benefit guarantees are reduced proportionately by withdrawals. THE CANADA LIFE ASSURANCE COMPANY 5
Notes about segregated funds policies features and guarantees vary by policy and age of annuitant. Some limitations apply. Maturity and death benefit guarantees are reduced proportionately by withdrawals. creditor protection depends on court decisions and applicable legislation, which can be subject to change and vary from each province. It can never be guaranteed. Talk to your lawyer to learn more about potential for creditor protection for your specific situation. premiums contributed to a 75/100 guarantee or 100/100 guarantee when the youngest annuitant is age 80 or older are subject to a graded death benefit guarantee schedule. Short-term trading fees may apply if a premium is withdrawn or switched from a segregated fund within 90 days of being applied. the lifetime income benefit offers a lifetime income amount, which will never decrease provided excess withdrawals are not taken. Please see the Canada Life segregated funds information folder for details. 6 THE CANADA LIFE ASSURANCE COMPANY
segregated information STEP 1: Choose your guarantee This chart outlines the differences between the three guarantee options. You have the flexibility to choose the right guarantee to protect you. Guarantees 75/75 75/100 100/100 Maturity guarantee Death benefit guarantee 75 per cent 75 per cent 100 per cent Canada Life segregated funds policies provide a guarantee that can give you some comfort during turbulent markets. 75 per cent 100 per cent 100 per cent Canada Life segregated funds policies provide a guarantee at death of the last annuitant. STEP 2: Add your options You can tailor your segregated fund policy even further by adding any of these protection features. Optional features Description Available on these policies Maturity guarantee reset option Death benefit guarantee reset option Lifetime income benefit Automatic rebalancing Annual automatic resets of the maturity guarantee annual automatic resets of the death benefit guarantee Guarantees income for life and offers features that may increase future income payments. Suited for clients looking for pre-retirement and retirement income planning Choose single-life or joint-life income automatically adjusts your asset mix on a quarterly, semi-annual or annual basis Select the point at which your portfolio is rebalanced anywhere from two to 10 per cent away from your original asset allocation available on all segregated funds except Real Estate (GWLRA) Service is available at no additional cost 100/100 guarantee 75/100 guarantee 100/100 guarantee 75/75 guarantee 75/100 guarantee 75/75 guarantee 75/100 guarantee 100/100 guarantee The maturity guarantee reset and death benefit guarantee reset options must be chosen at the time the initial premium is contributed to the policy. The lifetime income benefit option is available at the time the initial premium is contributed to the policy or later and is not available for all policy types. Additional fees apply for each of the options, please see the Canada Life segregated funds information folder for further details. THE CANADA LIFE ASSURANCE COMPANY 7
STEP 3: Select the right funds for you With Canada Life segregated funds policies, you can choose from numerous funds, regardless of the guarantee level you select. If you add the lifetime income benefit option, you can select from 28 eligible segregated funds. s available for lifetime income benefit option code Investment manager class style objective Allocation s Conservative Allocation S626 Multiple managers allocation interest income with the potential for capital appreciation by investing in units of Canadian fixed-income segregated funds of Canada Life with a smaller portion in its segregated funds. s as follows: 20 to 40 per cent equities 60 to 80 per cent fixed income Moderate Allocation S627 Multiple managers allocation a balance between current income and long-term capital growth by investing primarily in units of Canadian fixedincome segregated funds of Canada Life, and includes a significant in its segregated funds. s as follows: 30 to 60 per cent equities 40 to 70 per cent fixed income Balanced Allocation S628 Multiple managers allocation a balance between long-term capital growth and current income by investing primarily in units of segregated funds of Canada Life, and includes a significant in its fixedincome segregated funds. s as follows: 50 to 75 per cent equities 25 to 50 per cent fixed income 8 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager Allocation s continued Advanced Allocation Aggressive Allocation S629 S630 Multiple managers Multiple managers Income Allocation s Income Focus S631 Multiple managers Income Growth Income Growth Plus S632 S633 Multiple managers Multiple managers class allocation allocation Income allocation Income allocation Income allocation style objective long-term capital growth by investing primarily in units of segregated funds of Canada Life, a smaller portion in its fixed-income segregated funds. s as follows: 70 to 90 per cent equities 10 to 30 per cent fixed income long-term capital growth by investing primarily in units of segregated funds of Canada Life. s as follows: 90 to 100 per cent equities Zero to 10 per cent fixed income interest income with the potential for capital appreciation by investing in units of Canadian fixed-income segregated funds with a smaller portion in units of segregated funds. s as follows: 10 to 30 per cent equities 70 to 90 per cent fixed income a balance between current income and long-term capital growth by investing primarily in units of fixed-income segregated funds and includes a significant in units of segregated funds. s as follows: 25 to 45 per cent equities 55 to 75 per cent fixed income a balance between current income and long-term capital growth by investing primarily in units of and fixedincome segregated funds. s as follows: 40 to 60 per cent equities 40 to 60 per cent fixed income THE CANADA LIFE ASSURANCE COMPANY 9
code Investment manager class style objective Managed fund solutions Core managed solutions Core Conservative Growth S803 Multiple managers Managed fund solutions interest income with the potential for capital appreciation by investing primarily in units of Canadian fixedincome funds while investing a smaller portion in Canadian and foreign funds. s as follows: 30 per cent equities 70 per cent fixed income Core Moderate S804 Multiple managers Managed fund solutions a balance between current income and long-term capital growth by investing primarily in units of Canadian fixedincome funds while investing a smaller portion in Canadian and foreign funds. s as follows: 40 per cent equities 60 per cent fixed income Core Moderate Growth Plus S805 Multiple managers Managed fund solutions a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds. s as follows: 50 per cent equities 50 per cent fixed income Core Balanced S801 Multiple managers Managed fund solutions a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds. s as follows: 60 per cent equities 40 per cent fixed income s available for lifetime income benefit option 10 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager class style objective Core managed solutions continued Core Balanced Growth Plus S802 Multiple managers Partner managed solutions Fidelity Moderate Income Fidelity Moderate Growth Plus Fidelity Balanced Managed fund solutions S808 Fidelity Managed fund solutions S807 Fidelity Managed fund solutions S806 Fidelity Managed fund solutions long-term capital growth by investing primarily in units of Canadian and foreign funds while investing a smaller portion in Canadian fixedincome funds. s as follows: 70 per cent equities 30 per cent fixed income interest income with the potential for capital appreciation by investing in units of funds managed by Fidelity. The fund primarily invests in fixed-income funds while investing a smaller portion in units of Canadian and foreign funds. s as follows: 35 per cent equities 65 per cent fixed income a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Fidelity. s as follows: 50 per cent equities 50 per cent fixed income a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Fidelity. s as follows: 60 per cent equities 40 per cent fixed income THE CANADA LIFE ASSURANCE COMPANY 11
code Investment manager class style objective Partner managed solutions continued Franklin Templeton Moderate Income S811 Franklin Templeton Managed fund solutions interest income with the potential for capital appreciation by investing in units of funds managed by Franklin Templeton Investments. The fund primarily invests in fixed-income funds while investing a smaller portion in units of Canadian and foreign funds. s as follows: 35 per cent equities 65 per cent fixed income Franklin Templeton Moderate Growth S810 Franklin Templeton Managed fund solutions a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Franklin Templeton Investments. s as follows: 45 per cent equities 55 per cent fixed income Franklin Templeton Balanced Income S809 Franklin Templeton Managed fund solutions a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Franklin Templeton Investments. s as follows: 55 per cent equities 45 per cent fixed income CI Balanced Income S800 CI Managed fund solutions a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by CI Investments. s as follows: 55 per cent equities 45 per cent fixed income s available for lifetime income benefit option 12 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager class style objective Partner managed solutions continued Mackenzie Moderate Income S815 Mackenzie Managed fund solutions Multiple styles interest income with the potential for capital appreciation by investing in units of funds managed by Mackenzie Financial Corporation. The fund primarily invests in fixedincome funds while investing a smaller portion in units of Canadian and foreign funds. s as follows: 35 per cent equities 65 per cent fixed income a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Mackenzie Financial Corporation. s as follows: 45 per cent equities 55 per cent fixed income a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Mackenzie Financial Corporation. s as follows: 55 per cent equities 45 per cent fixed income a balance between long-term capital growth and current income by investing in units of Canadian fixed-income and Canadian and foreign funds managed by Mackenzie Financial Corporation. s as follows: 60 per cent equities 40 per cent fixed income Mackenzie Moderate Growth S814 Mackenzie Managed fund solutions Mackenzie Balanced Income S813 Mackenzie Managed fund solutions Mackenzie Balanced S812 Mackenzie Managed fund solutions THE CANADA LIFE ASSURANCE COMPANY 13
code Investment manager class Cash & cash equivalents Money Market S029 Portico Cash and cash equivalents Money Market Rebalancing Series S029 (R) Fixed-income funds Government Bond Portico Cash and cash equivalents S167 Portico Fixed income Fixed Income S019 Portico Fixed income International Bond Income Opportunity S036 CLI Fixed income S354 Portico Fixed income style Not applicable Not applicable Not applicable Not applicable Not applicable Growth at a reasonable price (GARP) objective Focuses on providing interest income by investing primarily in Canadian money market s such as high-quality commercial paper and short-term government debt securities. available only when the automatic rebalancing option is chosen automatically directs premiums to segregated funds selected for rebalancing focuses on providing interest income by investing primarily in Canadian money market s such as high-quality commercial paper and short-term government debt securities interest income with the potential for capital appreciation by investing primarily in fixed-income securities issued by Canadian governments. interest income with the potential for capital appreciation by investing primarily in Canadian fixed-income securities, including government securities and corporate incomeproducing securities. interest income with the potential for capital appreciation by investing primarily in Canadian fixed-income securities, including foreign denominated government bonds and corporate income-producing securities. a balance between long-term capital growth and current income by investing primarily in Canadian fixed-income securities and equities. s available for lifetime income benefit option 14 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager class style objective Fixed-income funds continued Indexed Canadian Bond Short Term Bond Long Term Bond S079 TDAM Fixed income SF816 Portico Fixed income SF818 Portico Fixed income Not applicable Not applicable Not applicable This segregated fund invests in the TD Emerald Canadian Bond Index. The objective of the underlying fund is to track the performance of the Scotia Capital Universe Bond Index (the Universe Index). The portfolio is invested primarily in a group of bonds included in the Universe Index that are selected and weighted mathematically to approximate the overall return and risk characteristics of the Universe Index, subject to the restrictions of the fund. This fund seeks to provide a level of income consistent with s in short-term fixed-income securities by investing primarily in high-quality, short-term fixed-income securities issued by Canadian federal, provincial or municipal governments or issued by Canadian corporations. This fund invests primarily in Canadian fixed-income securities issued by governments and corporations, with some exposure to foreign fixed-income securities. Real Return Bond SF820 Portico Fixed income Not applicable This fund seeks to provide investors with a steady flow of interest income while supplying a hedge against the risk that inflation presents to bond funds. The fund will seek to accomplish its objectives by investing primarily in Real Return Bonds with coupons and principals that are indexed to inflation. Corporate Bond SF817 Portico Fixed income Not applicable This segregated fund invests primarily in Canadian fixed-income securities issued by corporations, with some exposure to foreign fixed-income securities. North American High Yield Bond SF819 Putnam Fixed income Not applicable This fund seeks to generate aboveaverage income with potential for long-term capital growth by investing primarily in higher yielding fixed-income securities of corporate issuers. THE CANADA LIFE ASSURANCE COMPANY 15
code Balanced funds Canadian Growth & Income Investment manager class style objective S249 AGF Balanced Growth This segregated fund invests in the AGF Canadian Balanced. The underlying fund s objective is to provide high long-term total returns with moderate risk through a combination of long-term capital growth and current income. It invests primarily in a mix of common and preferred shares of Canadian companies, Canadian federal and provincial bonds, high-quality corporate bonds and money market instruments. Balanced S054 Invesco Balanced Blend This segregated fund invests in the Trimark Income Growth. The underlying fund seeks to generate capital growth and income over the long term. The fund invests primarily in Canadian equities, fixed-income securities of Canadian issuers, both government and corporate, and foreign equities and fixed-income securities. Balanced S104 Bissett Balanced GARP This segregated fund invests in the Bissett Canadian Balanced. The underlying fund seeks balance of current income and long-term capital appreciation by investing primarily in a portfolio of Bissett s to achieve a balance of fixed-income and s. Harbour Growth and Income Canadian Allocation S190 CI Balanced Blend This segregated fund invests in the CI Harbour Growth and Income. The underlying fund s objective is to obtain long-term total return through a prudent balance of income and capital appreciation. It invests primarily in and -related securities of mid-to-large-capitalization Canadian companies and fixed-income securities issued by Canadian governments and companies. The proportion of the fund s assets invested in and fixedincome securities may vary according to market conditions. S191 Fidelity Balanced Blend This segregated fund invests in the Canadian Allocation (Fidelity). The underlying fund aims to achieve high total return. The fund uses an asset allocation approach. It invests primarily in a mix of Canadian securities, fixedincome securities and money market instruments. s available for lifetime income benefit option 16 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager class style objective Balanced funds continued Managed S035 Laketon Balanced Blend a balance between long-term capital growth and current income by investing primarily in Canadian fixed-income securities and Canadian and foreign equities. Balanced Global Balanced Canadian Large Cap Balanced Canadian All Cap Balanced S208 Greystone Balanced Growth This fund s objective is the preservation of the value of original s, capital appreciation and income. Greystone uses a growth-oriented style to manage the portion of this fund. S513 Mackenzie Global Balanced GARP This underlying fund seeks long-term capital growth through a prudent balance of current income and capital appreciation. The fund invests primarily in foreign and fixed-income securities and will generally maintain a balanced allocation to each with gradual changes over time. S519 Mackenzie Balanced Growth This fund seeks to achieve long-term growth by investing primarily in a combination of Canadian common shares, bonds and debentures to provide a portfolio of diversified s. S520 Mackenzie Balanced Value This fund provides long-term capital growth and income by investing primarily in a well-diversified balanced portfolio of Canadian, fixed-income and money market securities. Income S521 Mackenzie Balanced Value This fund invests primarily in Canadian bonds, including government debt securities, corporate bonds, debentures and treasury bills. Canadian funds Canadian Canadian Growth S052 Invesco Canadian S289 Invesco Canadian Value Growth This segregated fund invests in the Trimark Canadian. The underlying fund seeks to provide strong capital growth with a high degree of reliability over the long term; it invests primarily in common shares of Canadian companies. This segregated fund invests in the AIM Canadian Premier Class. The underlying fund seeks to generate long-term capital growth by investing mainly in equities of small-, medium- and largecap Canadian companies that offer growth potential. THE CANADA LIFE ASSURANCE COMPANY 17
code Investment manager class style objective Canadian funds continued Canadian Small Cap Harbour Canadian Canada Life Fidelity True North Mid Cap Canada Enhanced Dividend Canadian Canadian Value S103 Bissett Canadian S105 Bissett Canadian S175 CI Canadian S176 Fidelity Canadian S346 GWLIM Canadian S039 Laketon Canadian S009 Laketon Canadian S347 Laketon Canadian Dividend S189 London Capital Canadian S285 London Capital Canadian Canadian GARP GARP Blend Growth Growth Value Growth Value Value GARP This segregated fund invests in the Bissett Canadian. The underlying fund seeks long-term capital appreciation by investing primarily in a diversified portfolio of mid-to-large capitalization Canadian equities. This segregated fund invests in the Bissett Small Cap. The underlying fund seeks long-term capital appreciation by investing primarily in a diversified portfolio of Canadian smallcapitalization equities. This segregated fund invests in the CI Harbour. The underlying fund s objective is to obtain maximum longterm capital growth. It invests primarily in and -related securities of high-quality, large- and mid-capitalization Canadian companies that the portfolio advisor believes have good potential for future growth. This segregated fund invests in the Fidelity True North. The underlying fund aims to achieve long-term capital growth. It invests primarily in securities of Canadian companies. long-term capital growth by investing primarily in equities of Canadian midand smaller- capitalization companies. dividend income along with long-term capital growth by investing primarily in Canadian equities. long-term capital growth by investing primarily in Canadian equities. long-term capital growth by investing primarily in Canadian equities. dividend income along with long-term capital growth by investing primarily in Canadian equities. long-term capital growth by investing primarily in Canadian equities. 18 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager Canadian funds continued Canadian Growth Canadian class S102 Mackenzie Canadian S177 Canadian specialty Canadian Howson Tattersall Canadian S101 AGF Canadian specialty Real Estate S353 GWLRA Canadian specialty Canadian Resource S348 Mackenzie Canadian specialty style Growth Value Mid-cap growth Not applicable Mid-cap blend objective This segregated fund invests in the Mackenzie Canadian Growth. The underlying fund seeks to provide long-term capital growth by investing primarily in common shares of Canadian-based corporations of any size. This segregated fund invests in the Howson Tattersall Canadian Value Pool. The objective of the underlying fund is to provide superior long-term capital growth with due regard to capital preservation by investing primarily in a well-diversified portfolio of Canadian equities. This segregated fund invests in the AGF Canadian Growth. The underlying fund s objective is to provide capital growth. It invests primarily in shares of small and medium Canadian companies that are expected to profit from future economic growth. a balance between long-term capital growth and current income by investing directly or indirectly through underlying funds, in a portfolio consisting primarily of income-producing real estate properties. This segregated fund invests in the Mackenzie Canadian Resource. The underlying fund pursues aboveaverage capital growth primarily from shares of Canadian companies engaged in the energy and natural resource industries. THE CANADA LIFE ASSURANCE COMPANY 19
code Foreign American Growth International Investment manager class S247 AGF Foreign S182 CI Foreign Global S051 Invesco Foreign Global S184 Fidelity Foreign Canada Life Fidelity American Disciplined S356 Fidelity Foreign Global S034 Setanta Foreign Cundill Global Value S514 Mackenzie Foreign U.S. Value S178 London Capital Foreign style Growth Blend Blend Blend Blend Value Value Value objective This segregated fund invests in the AGF American Growth Class. The underlying fund s objective is to provide long-term capital growth. It invests primarily in securities of established U.S. companies. This segregated fund invests in the CI International. The underlying fund s objective is to obtain long-term capital growth. It invests primarily in and -related securities of companies whose primary operations are outside of North America. The fund may make large s in any country including emerging markets and emerging industries of any market. This segregated fund invests in the Trimark. The underlying fund seeks to achieve strong capital growth with a high degree of reliability over the long term. The fund invests primarily in equities of companies anywhere in the world. This segregated fund invests in the Fidelity Global. The underlying fund aims to achieve long-term capital growth. It invests primarily in securities of companies anywhere in the world. This segregated fund invests in the Fidelity American Disciplined. The underlying fund aims to achieve long-term capital growth. It invests primarily in securities of U.S. companies. long-term capital growth by investing primarily in equities worldwide. This underlying fund seeks long-term capital growth from investing primarily in securities which the manager believes are trading below their intrinsic value. The fund may invest the majority of its assets in the securities of companies in a single country or a single industry depending on prevailing market conditions. long-term growth by investing primarily in publicly traded securities of mid- to large-capitalization U.S. companies. 20 THE CANADA LIFE ASSURANCE COMPANY
segregated information code Investment manager class style objective Foreign continued U.S. Growth S286 Mackenzie Foreign Global Future S183 Mackenzie Foreign International S118 Templeton Foreign US Dividend SF522 GWLIM Foreign Growth Growth Value Growth This segregated fund invests in the Mackenzie U.S. Growth Leaders. The underlying fund seeks to achieve long-term growth of capital by investing primarily in common shares of U.S. companies of any size, from larger, well-established companies to smaller, emerging growth companies. This segregated fund invests in the Mackenzie Universal Global Growth. The underlying fund seeks to achieve long-term growth of capital by investing primarily in common stocks of companies of any size throughout the world. This segregated fund invests in the Templeton International Stock Trust. The fundamental objective of the underlying fund is to achieve longterm capital growth through a flexible policy of, primarily in securities of companies listed on stock exchanges of any nation other than Canada and the U.S. This fund seeks to provide long-term capital growth and dividend income by investing primarily in dividend incomeproducing U.S. equities that offer above average yields, and/or the potential for growing their yields. THE CANADA LIFE ASSURANCE COMPANY 21
code Foreign special Far East Canada Life Fidelity Northstar European Global Infrastructure Investment manager class S038 Mackenzie Foreign specialty S355 Fidelity Foreign specialty S037 Setanta Foreign specialty S515 London Capital Foreign specialty style Blend Value GARP objective This segregated fund invests in the Mackenzie Focus Far East Class. The underlying fund pursues longterm capital growth by investing in a concentrated portfolio of Asian securities (excluding Japanese securities). The fund may invest in securities traded in Hong Kong, South Korea, Taiwan, China, Malaysia, Indonesia, Philippines, New Zealand, India, Pakistan, Thailand and other Asian markets. This segregated fund invests in the Fidelity NorthStar. The underlying fund aims to achieve long-term capital growth. It invests primarily in securities of companies anywhere in the world. long-term capital growth by investing primarily in European equities. This fund seeks long-term capital growth and income by investing primarily in securities of companies throughout the world that are involved in, or that indirectly benefit from, infrastructure-related operations. 22 THE CANADA LIFE ASSURANCE COMPANY
Learn about managers Investment manager selection and review process segregated information By selecting a Canada Life segregated funds policy, you don t have to choose from the hundreds of available managers we ve done the research and narrowed it down for you. Canada Life s managers Canada Life recognizes the importance of good governance and follows a disciplined approach to maintaining high standards for its managers and segregated funds. The manager review process monitors how each manager fulfils his or her specific mandate (as outlined in the Canada Life segregated funds information folder). A committee of industry experts evaluates each fund and manager using a variety of quantitative and qualitative measures. To meet your diverse needs, you can choose from a variety of segregated funds managed by some of the world s best managers. Building a diversified portfolio means investing in a number of funds to reduce overall risk. The same principle applies to using a number of managers within your portfolio. Different managers apply various management styles, which can react in different ways under the same market conditions. THE CANADA LIFE ASSURANCE COMPANY 23
Access top managers Canada Life has assessed risk and return for more than 150 years. That expertise helped lead to this team of top-rated managers for our segregated funds products. AGF s Established in 1957, AGF is a bottom-up, growth management firm that uses rigorous fundamental analysis with a global perspective, while focusing on long-term trends and stocks that display growth opportunities. AGF s processes vary by fund, yet each team uses strong risk controls when seeking companies that exhibit financial flexibility, quality management, competitive advantages and good valuations. AGF has approximately U.S.$44 billion in assets under management.* * At March 31, 2012 Brandywine Founded in 1986, Brandywine uses a top-down, value management style to their global fixed-income portfolios. It became a wholly owned but independent division of Legg Mason Inc. in 1998. Brandywine offers a unique approach to international bond investing and avoids index-like country weights. It prefers to look for absolute value among a highly concentrated portfolio of eight to 12 countries deemed to have the best total return potential. Brandywine manages C$30 billion in assets under management.* * At March 31, 2012 24 THE CANADA LIFE ASSURANCE COMPANY
segregated information CI Investments Established in 1965, CI Investments offers investors fund options with a variety of styles including value, blend (growth at a reasonable price) and growth through a number of different divisions. Investment processes vary by division and mandate. However, each team affiliated with CI, including Harbour Advisors, Synergy Management and Tetrem Capital Management Ltd., seeks to deliver positive, risk-adjusted returns regardless of market conditions. CI Investments is a leading manager with approximately C$10 billion in assets under management*. *At March 31, 2012 Fidelity Investments Canada ULC Established in 1946, Fidelity Investments is a bottom-up, blend management firm. Its global strength (represented by more than U.S.$3.4 trillion in assets under management at Dec. 31, 2011) brings a strong partnership with our company. Fidelity s processes vary by fund, with each team applying a multi-region, multi-cap focus on the individual security selection, research and decisions. In 1987, Fidelity Investments established Fidelity Investments Canada ULC, a division committed to serving the Canadian marketplace. Fidelity has more than C$67 billion in Canadian mutual fund assets under management*. *At March 31, 2012 Franklin Templeton Investments Franklin Templeton advises the Franklin, Templeton and Bissett funds. It uses a bottom-up, multi-disciplined, long-term approach. Franklin and Templeton use a value approach, while Bissett is a growth-ata-reasonable-price manager. Franklin Templeton manages over U.S.$781 billion in assets globally*. *At March 31, 2012 THE CANADA LIFE ASSURANCE COMPANY 25
GLC Management Group Ltd. is a leading manager in Canada and maintains singular focus on providing its clients with superior, long-term performance. GLC manages C$33 billion in assets* for Canadian investors, and offers a broad range of mandates through four distinct management divisions: GWL Investment Management, London Capital Management, Laketon Investment Management and Portico Investment Management. GLC is a Canadian portfolio management subsidiary of The Great-West Life Assurance Company. Great-West Life has C$199.9 billion in assets under administration (at June 30, 2011) and is a subsidiary of Great-West Lifeco Inc. and a member of the Power Financial Corporation group of companies. *At March 31, 2012 GWLIM, a division of GLC Management Group Ltd., is a top-down, growth oriented, all-cap manager. The GWLIM team blends the comprehensive analysis of broad economic trends with stock-level fundamental and technical analysis to seek out attractive growth s. Laketon, a division of GLC Management Group Ltd., is a bottom-up, large-cap manager with an emphasis on concentrated portfolios. Laketon s bottom-up approach combines qualitative and quantitative analysis. Its active style is focused on high-quality Canadian equities and is designed to create the appropriate balance between positive return generation in up markets and capital preservation in down markets. London Capital, a division of GLC Management Group Ltd., is a bottom-up, growth-ata-reasonable-price, large-cap manager. Capitalizing on the risk/ reward relationship between price and earnings growth, London Capital s team blends quantitative and fundamental analysis to find companies whose earnings are growing faster than the market, buying them when they re at an attractive price. London Capital seeks to create each portfolio with an optimal combination of companies and industries to deliver strong results. Portico, a division of GLC Management Group Ltd., specializes in fixed-income portfolio management. The Portico team uses a consistent, measured and disciplined approach that integrates fundamental, quantitative and technical analysis to add value while also managing risk. Portico s process is iterative. It reassesses the portfolio as the market and/or our view of the market changes over time. This approach is designed to capitalize on the volatile nature of today s bond markets, find valuation opportunities along the yield curve, and ensure that risk management is always top of mind. 26 THE CANADA LIFE ASSURANCE COMPANY
segregated information Greystone Managed Investments Inc. Greystone is an employeeowned organization based out of Regina and is Canada s largest independently owned pension manager. While portfolios are constructed using a bottomup, growth-oriented approach, fixed-income portfolios are actively managed and constructed across the yield curve. Greystone teams spend substantial time at the trading desk, thus reinforcing communications within and among asset classes. In addition, they conduct daily market review meetings and a formal weekly gathering of all professional personnel. Greystone manages over C$34 billion in assets*. *At March 31, 2012 GWL Realty Advisors Inc. Commercial real estate is an alternate asset class not always accessible to most retail investors, and a unique option to diversify a portfolio. The Canada Life Real Estate was launched in 2005. The fund invests in units of the Great-West Life Real Estate. Established in 1981 and managed by GWLRA, the Great-West Life Real Estate (Canadian Real Estate Investment No. 1) is one of Canada s largest open-ended, segregated real estate funds. The fund s core objective is to provide investors with stable income returns and the opportunity for long-term capital appreciation. GWL Realty Advisors, a whollyowned subsidiary of The Great-West Life Assurance Company, is a leading real estate advisor providing comprehensive asset management, property management, development and specialized real estate services to pension funds and institutional clients. Invesco Established in 1935, Invesco is bottom-up, value-orientated firm with an extensive global footprint and offices in 20 countries. Invesco s processes vary by fund, with specialized teams delivering diversified strategies focusing on strict risk oversight. Invesco, a subsidiary of Invesco Ltd., has C$676 billion in assets under management*. * At March 31, 2012 THE CANADA LIFE ASSURANCE COMPANY 27
Mackenzie Investments Founded in 1967, Mackenzie Financial Corporation is a leading Canadian management firm. A member of IGM Financial Inc. group of companies, which manages over C$121.98 billion in total assets under management*, Mackenzie distributes its services through a diversified network of third-party advisors. Mackenzie s styles and processes differ between its management divisions *At Jan. 31, 2012 Ivy Mackenzie s Ivy funds follow a blended management style centered on bottomup fundamental research and business analysis, characterized by ownership in select businesses, patiently acquired. Cundill Mackenzie s Cundill approach is based on fundamental deep-value investing. Preservation of invested capital is the hallmark of the contrarian value approach followed by the team. Howson Tattersall Investment Counsel Howson Tattersall s focus on value investing has produced strong long-term results with excellent capital preservation for clients. Howson Tattersall s management has been in place since 1985, utilizing the same bottom-up, value approach process and philosophy for over 20 years. Putnam Investments Putnam Investments provides award-winning management services across a wide range of asset classes and strategies. A successful U.S. manager affiliated with Great-West Life, they provide a new and unique offering to the Canadian mutual fund space. Putnam has over U.S.$135 billion in assets under management*. *At April 30, 2013 Setanta Management Limited Setanta Management is a dedicated value manager, investing clients money by following a value framework laid out by Benjamin Graham. Setanta believes this active, long-term, fundamental approach represents the best chance of successful investing, measured opver a multi-year timeframe. Setanta was established in Dublin in 1998 and has grown steadily since then, now managing 5.3 billion in assets*. Setanta is a wholly owned subsidiary of Canada Life Irish Holding Company Limited, which is in turn owned by Great-West Lifeco Inc. Setanta manages assets for a number of institutional clients, including third-party institutions and the Great-West Life group of companies. * At June 30, 2012 TD Management Inc. TD Management Inc. is a wholly-owned subsidiary of the Toronto-Dominion Bank and a member of TD Bank Group. This manager constantly monitors the sentiment of the management industry to respond proactively. Separate and independent of the portfolio management and trading groups is a 29-member risk management team, dedicated solely to helping safeguard assets and ensuring fiduciary responsibility is fulfilled. TDAM has over C$201 billion in assets under management*. *At March 30, 2012 28 THE CANADA LIFE ASSURANCE COMPANY
Investment-style grid Access to top funds styles segregated information Diversification is one of the most important strategies. You can diversify by sector, asset class, market capitalization and style. styles Spreading s over different styles can lower expected risk while maintaining expected returns. These charts illustrate the diversity of the funds in the Canada Life segregated funds. Canadian and Canadian specialty funds Canadian funds A. Canada Life Fidelity True North S176 Large Cap B. Canadian (Bissett) S103 H J K A B E D N F C. Small Cap (Bissett) S105 C I M D. canadian Growth (Mackenzie) S102 E.canadian (London Capital) S285 Value L A B G Growth F. Canadian (Laketon) S009 G. Mid Cap Canada (GWLIM) S346 Small Cap H. Enhanced Dividend (Laketon) S039 I. canadian Value (Laketon) S347 Canadian specialty funds J. Dividend (London Capital) S189 K. Harbour Canadian (CI) S175 A. Canadian Resource (Mackenzie) S348 B. Canadian (AGF) S101 L. Canadian (Howson Tattersall) S177 M. Canadian (Invesco) S052 N. Canadian Growth (Invesco) S289 THE CANADA LIFE ASSURANCE COMPANY 29
Canada Life segregated funds correlation matrix April 2013 Period ending April 30, 2013 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Number of months 128 141 141 141 141 141 141 108 141 141 141 81 128 108 57 57 141 1 American Growth (AGF) 1.00 2 Balanced (Bissett) 0.74 1.00 3 Balanced (Invesco) 0.76 0.93 1.00 4 Canadian (Invesco) 0.74 0.89 0.93 1.00 5 Canadian Allocation (Fidelity) 0.68 0.86 0.80 0.83 1.00 6 Canadian (AGF) 0.68 0.83 0.77 0.83 0.92 1.00 7 Canadian (Bissett) 0.70 0.94 0.88 0.89 0.85 0.79 1.00 8 Canadian (Howson Tattersall) 0.71 0.93 0.85 0.86 0.89 0.87 0.93 1.00 9 Canadian (London Capital) 0.68 0.87 0.82 0.86 0.95 0.91 0.91 0.95 1.00 10 Canadian (Laketon) 0.68 0.89 0.82 0.86 0.95 0.93 0.90 0.94 0.97 1.00 11 Canadian Growth (Mackenzie) 0.77 0.88 0.82 0.86 0.92 0.91 0.89 0.95 0.97 0.95 1.00 12 Canadian Value (Laketon) 0.69 0.85 0.79 0.86 0.93 0.91 0.87 0.94 0.96 0.94 0.94 1.00 13 Canadian Growth & Income (AGF) 0.38 0.58 0.53 0.56 0.67 0.62 0.52 0.66 0.67 0.67 0.66 0.70 1.00 14 Canadian Growth (Invesco) 0.72 0.95 0.88 0.89 0.87 0.89 0.89 0.93 0.90 0.93 0.92 0.87 0.68 1.00 15 Canadian Resource (Mackenzie) 0.55 0.75 0.67 0.77 0.84 0.90 0.73 0.77 0.85 0.88 0.83 0.80 0.48 0.82 1.00 16 CL Fidelity American Disciplined 0.89 0.87 0.86 0.81 0.75 0.71 0.80 0.78 0.72 0.75 0.79 0.81 0.44 0.82 0.63 1.00 17 CL Fidelity NorthStar 0.71 0.78 0.77 0.66 0.71 0.63 0.69 0.67 0.61 0.68 0.64 0.62 0.52 0.72 0.46 0.82 1.00 18 CL Fidelity True North 0.69 0.87 0.82 0.86 0.95 0.58 0.09 0.94 0.96 0.95 0.94 0.93 0.74 0.89 0.76 0.76 0.72 19 Cundill Global Value (Mackenzie) 0.72 0.91 0.87 0.84 0.80 0.77 0.86 0.87 0.81 0.82 0.81 0.81 0.52 0.87 0.67 0.80 0.78 20 Dividend (London Capital) 0.68 0.86 0.83 0.83 0.81 0.73 0.90 0.87 0.87 0.84 0.84 0.83 0.60 0.81 0.63 0.74 0.64 21 Enhanced Dividend (Laketon) 0.72 0.91 0.83 0.82 0.80 0.75 0.91 0.92 0.87 0.85 0.88 0.86 0.57 0.84 0.63 0.77 0.66 22 European (Setanta) 0.60 0.86 0.85 0.75 0.69 0.64 0.73 0.72 0.66 0.67 0.65 0.64 0.40 0.77 0.52 0.72 0.74 23 Far East (Mackenzie) 0.61 0.76 0.72 0.66 0.66 0.74 0.64 0.70 0.67 0.70 0.69 0.61 0.46 0.81 0.69 0.68 0.65 24 Fixed Income (Portico) -0.57-0.48-0.55-0.64-0.44-0.49-0.61-0.60-0.61-0.61-0.63-0.57-0.32-0.55-0.46-0.52-0.43 25 Global (Fidelity) 0.81 0.94 0.90 0.82 0.80 0.78 0.83 0.83 0.77 0.81 0.81 0.75 0.50 0.91 0.69 0.91 0.83 26 Global (Invesco) 0.57 0.73 0.74 0.64 0.55 0.52 0.55 0.53 0.47 0.52 0.51 0.47 0.40 0.69 0.45 0.72 0.65 27 Global (Setanta) 0.76 0.87 0.87 0.77 0.69 0.63 0.74 0.72 0.65 0.67 0.69 0.63 0.49 0.80 0.51 0.88 0.85 28 Global Future (Mackenzie) 0.75 0.90 0.87 0.80 0.75 0.77 0.80 0.81 0.74 0.78 0.77 0.71 0.50 0.88 0.67 0.84 0.80 29 Global Infrastructure (London Capital) 0.55 0.81 0.77 0.66 0.59 0.53 0.67 0.67 0.57 0.60 0.61 0.53 0.46 0.75 0.47 0.72 0.70 30 Government Bond (Portico) -0.61-0.49-0.53-0.64-0.46-0.50-0.63-0.60-0.59-0.60-0.61-0.58-0.32-0.54-0.45-0.60-0.45 31 Harbour Canadian (CI) 0.78 0.90 0.90 0.92 0.88 0.86 0.92 0.94 0.94 0.93 0.95 0.91 0.59 0.93 0.80 0.83 0.71 32 Harbour Growth & Income (CI) 0.77 0.91 0.90 0.92 0.89 0.87 0.92 0.94 0.94 0.93 0.94 0.91 0.58 0.92 0.78 0.83 0.72 33 Indexed Canadian Bond (TDAM) -0.59-0.52-0.57-0.66-0.46-0.51-0.63-0.63-0.63-0.63-0.65-0.60-0.35-0.58-0.46-0.55-0.44 34 International Bond (CLI) -0.64-0.64-0.69-0.77-0.57-0.58-0.74-0.67-0.67-0.68-0.68-0.64-0.26-0.65-0.60-0.67-0.51 35 International (CI) 0.66 0.91 0.88 0.79 0.76 0.74 0.80 0.79 0.73 0.78 0.74 0.71 0.49 0.87 0.64 0.79 0.76 36 International (Templeton) 0.62 0.89 0.84 0.76 0.67 0.66 0.75 0.76 0.67 0.70 0.68 0.65 0.45 0.84 0.58 0.75 0.75 37 Managed (Laketon) 0.75 0.97 0.89 0.87 0.94 0.89 0.89 0.92 0.91 0.94 0.91 0.88 0.66 0.94 0.80 0.86 0.80 38 Mid Cap Canada (GWLIM) 0.66 0.78 0.70 0.75 0.87 0.91 0.77 0.82 0.88 0.91 0.87 0.85 0.56 0.84 0.93 0.70 0.58 39 Money Market (Portico) -0.32-0.19-0.26-0.16-0.14-0.13-0.16-0.04-0.10-0.13-0.16 0.00 0.18-0.14-0.20-0.30-0.24 40 Real Estate (GWLRA) 0.00 0.03 0.14 0.11-0.04-0.01 0.12 0.05 0.03 0.08 0.01-0.07-0.11 0.06 0.00 0.07 0.03 41 Small Cap (Bissett) 0.64 0.89 0.81 0.83 0.79 0.81 0.86 0.86 0.80 0.85 0.80 0.81 0.50 0.88 0.80 0.78 0.68 42 U.S. Growth (Mackenzie) 0.91 0.77 0.77 0.72 0.67 0.63 0.72 0.67 0.64 0.67 0.71 0.59 0.28 0.73 0.56 0.93 0.75 43 U.S. Value (London Capital) 0.87 0.84 0.85 0.81 0.74 0.73 0.75 0.78 0.74 0.75 0.81 0.72 0.54 0.84 0.63 0.92 0.81 As at April 2013; Source Morningstar Research Inc. 30 THE CANADA LIFE ASSURANCE COMPANY