FREEDOM FUNDS AND MARKETWATCH POLICIES INFORMATION … · NOVEMBER 2016 London Life Insurance...

N O V E M B E R 2 0 1 6

London Life Insurance Company.This document is not an insurance contract.

Freedom Fund, Investment Voyager, London Life and design are trademarks of London Life Insurance Company. 47-0121-11/16

FREEDOM FUNDS AND MARKETWATCH POLICIES

INFORMATION FOLDER

This information folder is not an insurance contract. The information in this folder is subject to change from time to time. If there is a difference between this information folder and your contract, your contract will apply.

In this information folder, you and your mean the policyholder of a London Life investment policy. We, us, our and London Life mean London Life Insurance Company.

About London Life London Life Insurance Company was incorporated in 1874 by an Act of the Legislature of Ontario to carry on the business of life and accident insurance. London Life was continued as a federal company in 1884 by an Act of the Parliament of Canada. London Life carries on business under the Insurance Companies Act (Canada). The terms and conditions of the policies issued by London Life and the distribution of the policies are governed by the insurance acts of the provinces and territories in Canada where London Life carries on business.

London Life is a subsidiary of The Great-West Life Assurance Company. Great-West Life and London Life are members of the Power Financial Corporation group of companies.

London Life’s administrative offices are located at:

255 Dufferin Avenue London, Ontario N6A 4K1

2001 Robert-Bourassa Blvd, Suite 540 Montreal, Quebec H3A 1T9

London Life’s head office is located at:

255 Dufferin Avenue London, Ontario N6A 4K1

Certification This information folder contains brief and plain disclosure of all material facts relating to the Freedom Fund and Marketwatch investment fund options available in the London Life investment policy issued by London Life Insurance Company.

July 12, 2016

J. Dave Johnston Douglas A. Berberich President and Chief Operating Officer, Canada Vice-President and Associate General Counsel, Canada

Key facts about the London Life Marketwatch and Freedom Funds policy

This summary provides a brief description of the basic things you should know before you apply for this individual variable insurance contract. This summary is not your contract. A full description of all the features and how they work is contained in this information folder and your contract. You should review these documents and discuss any questions you have with your financial security advisor.

What am I getting? You are getting an insurance contract between you and London Life Insurance Company. It gives you a choice of investment funds and provides certain guarantees.

You can:

Pick a registered or non-registered contract Choose one or more investment funds Name a person to receive the death benefit Withdraw money from your contract Receive regular payments now or later The choices you make may affect your taxes; see the section Income tax considerations. They could also affect the guarantees, see the section Examples of how redeeming units affects the basic amount and reduces the guaranteed value. Ask your financial security advisor to help you make these choices.

The value of your contract can go up or down subject to the guarantees.

What guarantees are available? Death benefit guarantee applies and you may get a maturity guarantee. These help protect your fund investments. For full details about the guarantees, please see the Guaranteed benefits section.

You pay fees for this protection. The fees are included in the management expense ratio which is described in the Fees and expenses section.

Any withdrawals you make will reduce the guarantees. For full details please see the Guaranteed benefits section.

Maturity guarantee This protects the value of your investment at a specific date in the future. This date is explained in the When your policy matures section.

On this date, you will receive the greater of:

The market value of the funds, or 75 per cent of the money you put in the funds

Death benefit guarantee This protects the value of your investment if the insured person dies. It is paid to someone you name.

The death benefit applies if the insured person dies before the maturity date. It pays the greater of:

The market value of the funds, or 100 per cent of the money you put in the funds if the

insured person is age 79 or younger when the policy is issued

75 per cent of the money you put in the funds if the insured person is age 80 or older when the policy is issued

What investments are available? You can invest in the investment funds described in the Fund Facts section.

Other than any maturity and death benefit guarantees, London Life does not guarantee the performance of the investment funds. Carefully consider your tolerance for risk when you select a fund.

How much will this cost? The investment funds you select affect your costs. The investment funds are available on a back-end load basis and in limited circumstances as no-load units. For full details, see the section Sales charge options and the Fund Facts for each investment fund.

Fees and expenses are deducted from the investment funds. They are shown as management expense ratios or MERs on the Fund Facts for each fund.

If you make certain transactions or other requests, you may be charged separately for them and this includes a short-term trading fee.

For full details, see the section Fees and expenses and the Fund Facts for each investment fund.

1

SEGREGATED FUND INFORMATION FOLDER

What can I do after I purchase this contract? If you wish, you can do any of the following:

Exchanges

You may exchange from one fund to another. See the section How to exchange investment fund units.

Withdrawals

You can withdraw money from your contract. If you decide to, this will affect your guarantees. You may also need to pay a fee or taxes. See the section How to redeem investment fund units.

Premiums

You may make lump-sum payments. See the section How to allocate premiums to investment fund units.

Regular payments

At a certain time, unless you select another option, we will start making payments to you. See the section When your policy matures.

Certain restrictions and other conditions may apply. Review the contract for your rights and obligations and discuss any questions with your financial security advisor.

What information will I receive about my contract? We will tell you at least once a year the value of your investment and any transactions you have made during the year.

You may request more detailed financial statements of the funds. These are updated at certain times during the year.

For full details, see the section Administration of the investments funds.

Can I change my mind? Yes, you can:

Cancel the contract Cancel any additional lump-sum premiums you make, or Cancel the initial pre-authorized monthly premium To do any of these, you must tell us in writing within two business days of the earlier of:

The day you receive the confirmation of your transaction, or

Five business days after we mail the confirmation to you The amount returned will be the lesser of the amount you invested or the value of the applicable units you acquired on the day we process your request. The amount returned will include a refund or any sales charge or other fees you paid. The transaction may generate a taxable result and you are responsible for any income tax reporting and payment that may be required as result of any transaction.

If you change your mind about a specific additional premium or exchange, the right to cancel only applies to that transaction. For full details, see the introductory page to the Fund Facts section.

Where can I get more information? You may call us at 1-877-566-5433 or send us an email. To send an email go to our website and then to the “Contact us” section. Information about our company and the products and services we provide is on our website at www.londonlife.com.

For information about handling issues you are unable to resolve with us, contact the OmbudService for Life and Health Insurance at 1-800-268-8099 or on the Internet at www.olhi.ca. Additionally, if you are a resident of Quebec contact the Information Centre of the Autorité des marchés financiers (AMF) at 1-877-525-0337 or at [email protected].

For information about additional protection available for all life insurance policyowners, contact Assuris, a company established by the Canadian life insurance industry. See www.assuris.ca for details.

For information about how to contact the insurance regulator in your province visit the Canadian Council of Insurance Regulators website at www.ccir-ccrra.org.

2


Table of contents

Key facts about the London Life Freedom Funds and Marketwatch policy ........................... 1

How London Life investment policies work ....... 5

Introduction ........................................................................ 5 Non-registered policies ....................................................... 5 RRSPs, LIRAs, LRSPs and RLSPs..................................... 6 RRIFs, PRIFs, LRIF, LIFs and RLIFs ................................ 7 Beneficiaries ....................................................................... 8

How our investment funds work.......................... 8

Profile funds ........................................................................ 8 Lifecycle profile funds ........................................................ 9 Sales charge options ............................................................ 9 How we value investment fund units .................................. 9 Fundamental changes to the investment funds .................. 10

Allocating premiums, redeeming and exchanging investment fund units .................... 10

How to allocate premiums to investment fund units ......... 10 How to redeem investment fund units .............................. 11 How to exchange investment fund units ........................... 11 Short-term trading ............................................................. 11 When the redemption of your units maybe delayed .......... 12

When your policy matures ................................. 12

Maturity date ..................................................................... 12 What happens to your policy on the maturity date ............ 13

Guaranteed benefits ........................................... 13

Basic amount ..................................................................... 13 Maturity guarantee ............................................................ 13 Death benefit guarantee .................................................... 14 Examples of how redeeming units affects the basic amount and reduces the guaranteed value ......................... 14 When the guaranteed benefits end .................................... 15

Fees and expenses ............................................. 15

Fees and expenses paid by the investment fund ................ 15 Annual investment management fees ................................ 17 Fees and expenses paid directly by you ............................ 19

Income tax considerations ................................ 20

Tax status of the investment funds .................................... 20 Non-registered plans .......................................................... 20 RRSPs................................................................................ 21 RRIFs ................................................................................ 21

Administration of the investment funds ........... 21

Keeping you informed ....................................................... 21 Requests for Fund Facts, financial statements and other documents .......................................................... 22 Material contracts .............................................................. 22 Material transactions ......................................................... 22 Assuris protection .............................................................. 22

Investment policy ............................................... 22

Investment managers ......................................... 23

Investment manager review process .................................. 24

Fund risks ........................................................... 24

Fund facts ........................................................... 29

Asset allocation funds

Conservative Profile (PSG) ............................................... 30 Moderate Profile (PSG) ..................................................... 32 Balanced Profile (PSG) ..................................................... 34 Advanced Profile (PSG) .................................................... 36 Aggressive Profile (PSG) .................................................. 38

Lifecycle profile funds

Income Profile (PSG) ........................................................ 40 2010 Profile (PSG) ............................................................ 42 2015 Profile (PSG) ............................................................ 44 2020 Profile (PSG) ............................................................ 46 2025 Profile (PSG) ............................................................ 48 2030 Profile (PSG) ............................................................ 50 2035 Profile (PSG) ............................................................ 52 2040 Profile (PSG) ............................................................ 54 2045 Profile (PSG) ............................................................ 56 2050 Profile (PSG) ............................................................ 58

3


Cash and cash equivalent funds

Money Market (Portico) .................................................... 60

Fixed income funds

Fixed Income Profile (PSG) .............................................. 62 Core Bond (Portico) .......................................................... 64 Core Plus Bond (Portico) .................................................. 66 Mortgage (Portico) ............................................................ 68 Government Bond (Portico) .............................................. 70

Balanced funds

Income (Portico) ............................................................... 72 Income (Mackenzie) ......................................................... 74 Diversified (London Capital) ............................................ 76 Balanced Growth (GWLIM) ............................................. 78 North American Balanced (London Capital) .................... 80 Equity/Bond (GWLIM) ..................................................... 82 Canadian Balanced (Mackenzie)....................................... 84 Growth and Income (Mackenzie)...................................... 86 Balanced (Beutel Goodman) ............................................. 88 Global Income (Sentry) ..................................................... 90 Global Monthly Income (London Capital) ..................... 92

Canadian equity funds

Canadian Equity Profile (PSG) ......................................... 94 Equity Profile (PSG) ......................................................... 96 Canadian Low Volatility (London Capital) .................. 98 Canadian Equity (London Capital) ................................. 100 Canadian Equity (GWLIM) ............................................ 102 SRI Canadian Equity (GWLIM) ..................................... 104 Growth Equity (Laketon) ................................................ 106 Canadian Equity Growth (Mackenzie) ............................ 108 Canadian Equity Growth (CC&L) .................................. 110 Equity (Mackenzie) ......................................................... 112 Canadian Equity (Beutel Goodman) ............................... 114 Dividend (GWLIM) ........................................................ 116 Dividend (Mackenzie)..................................................... 118 Mid Cap Canada (GWLIM) ............................................ 120 Growth Equity (AGF) ..................................................... 122

Canadian specialty and alternative funds

Real Estate (GWLRA) ..................................................... 124 Canadian Resource (Mackenzie) ..................................... 126 Precious Metals (Mackenzie) .......................................... 128

North American funds

Smaller Company (Mackenzie) ....................................... 130 Science and Technology (GWLIM) ................................ 132

Foreign equity funds

Global Equity Profile (PSG) ........................................... 134 Global Low Volatility (ILIM) ........................................ 136 Foreign Equity (Mackenzie) ............................................ 138 Global Equity (Putnam) ................................................... 140 Global Growth (Mackenzie) ............................................ 142 U.S. Equity (London Capital) .......................................... 144 U.S. Growth (Putnam) ..................................................... 146 American Growth (AGF) ................................................ 148 U.S. Mid Cap (GWLIM)………………… ..................... 150 International Equity (JPMorgan) ..................................... 152 International Growth (Mackenzie) .................................. 154

Foreign specialty and alternative funds

European Equity (Setanta) ............................................... 156 Far East Equity (CLI) ...................................................... 158 Glossary of terms ..................................................... 160

4


How London Life investment policies work

Introduction The London Life investment policy is an individual variable insurance contract based on the life of the insured person, also known as the annuitant, whom you name on the application form.

There are three types of policies available:

Non-registered Registered retirement savings plans (RRSPs) Registered retirement income funds (RRIFs) 1 Locked-in RRSPs (LRSP), locked-in retirement accounts (LIRA) and restricted locked-in savings plans (RLSP) are three specific types of RRSPs. You can generally only open LRSPs, LIRAs and RLSPs with money transferred directly from pension plans, where federal or provincial pension laws allow. Pension laws place certain restrictions on them. Since otherwise all RRSPs work the same way, whether or not they are LRSPs, LIRAs or RLSPs, we’ll simply refer to them as RRSPs throughout the rest of this information folder. Prescribed retirement income fund (PRIF), life income fund (LIF), locked-in retirement income fund (LRIF) and restricted life income fund (RLIF) are four specific types of RRIFs. Unless we say otherwise, when we refer to features of a RRIF, they also apply to a PRIF, LIF, LRIF and RLIF.

Each type of policy allows you, as the policyholder, to allocate premiums to a guaranteed interest option or investment fund option.

This information folder describes the investment funds available and the maturity and death benefit guarantees that come with them. For more information about guaranteed interest options, please contact your financial security advisor.

If your policy is a non-registered or RRSP policy, it is a deferred annuity, which means annuity payments may commence following the maturity date. If your policy is a RRIF policy, it is a payout annuity and you will receive annuity payments in accordance with the terms of the policy. If you choose to make a redemption from either type of annuity, this will reduce the amount available for annuity payments. Also, the

1Only available where funds are coming from a Freedom Fund RSP, LIRA, LRSP or RLSP.

performance of the various investment selections will affect the amount available for annuity payments. For more information, see When your policy matures.

Non-registered and RRSP policies allow you, as the policyholder, to invest in a daily interest option, a guaranteed interest option and an investment fund option. Currently, we have two investment fund options available – Freedom Funds and Marketwatch – that provide access to our family of 65 investment funds.

A RRIF policy allows you, as the policyholder, to allocate your premiums to a guaranteed interest option or an investment fund option that provides access to any of our 65 investment funds.

This document is divided into two parts. The first part contains general information that applies to all investment policies. The second part provides specific information about the investment funds.

A glossary of terms is located at the back of this information folder and provides an explanation of some of the terms used in the information folder.

Non-registered policies A non-registered policy can be owned by a single individual or jointly by several individuals. The annuitant can be the policyholder or someone else.

Currently, under a non-registered investment policy, we have two investment fund options – Freedom Funds and Marketwatch. Freedom Funds are available through a growth plan and a systematic redemption plan. Marketwatch is only available through a growth plan.

Redemptions made from Freedom Funds may be subject to early redemption fees. For more information, see Early redemption fees for back-end load units.

Redemptions made from the Marketwatch Growth Plan are not subject to early redemption fees.

You can schedule periodic income payments under the Freedom Fund systematic redemption plan. In a calendar year, you may receive up to 20 per cent of all allocated premiums in scheduled payments without incurring an early redemption fee. Amounts received in excess of 20 per cent may be subject to an early redemption fee. Unscheduled redemptions may be subject to early redemptions fees. For information concerning these fees, see Early redemption fees for backend load units. For information about fees to change the amount or frequency of your payments, see Charge for changing the amount or frequency of your scheduled periodic income payments.

5


For information about tax implications, see Income tax considerations.

Features of these policies are summarized in the following table:

Product feature

Marketwatch growth plan

Freedom Fund

growth plan

Freedom Fund

systematic redemption

plan

Maximum issue age 90 90 90

Minimum initial premium

$300 lump sum or $25 plus $25 automatic

monthly premium $10,000

Minimum automatic monthly premium

$25 $25 N/A

Minimum lump sum premium

$25 $100 $100

Minimum systematic redemptions

N/A N/A

Scheduled: $25 monthly

$100 quarterly or

semi-annually

$200 annually

Maximum 20% of

premiums per year

Minimum partial redemptions

$25 $500 Unscheduled:$500

Redemptions subject to possible early redemption fee

No Yes Yes

Minimum fund balance

$300 or $25 plus ongoing automatic monthly premium

$300

Current as of the date of the information folder – subject to change

RRSPs, LIRAs, LRSPs and RLSPs An RRSP is an investment policy registered under the Income Tax Act (Canada).

Only one person, who must also be the annuitant, can own an RRSP.

The contributions you make to your RRSP are tax deductible and there is a maximum amount you can contribute each year under the Income Tax Act (Canada). You can also transfer money directly from an RRSP at another financial institution or from a pension plan, if federal or provincial pension laws allow you to. There are no limits on the amount of transfers from RRSPs. There are limits under the Income Tax Act (Canada) for transfers from defined benefit pension plans.

Currently, under a registered policy, we have two investment fund options – Freedom Funds and Marketwatch. Both options are available as a growth plan.

Redemptions made from the Freedom Funds investment option may be subject to early redemption fees. Redemptions made from the Marketwatch investment option are not subject to early redemption fees. For more information, see Early redemption fees for back-end load units.



Product feature Marketwatch growth plan

Freedom Fund

growth plan

Maximum issue age 71 71

Minimum initial premium

$300 lump sum or $25 plus $25 automatic

monthly premium Minimum automatic monthly premium $25 $25

Minimum lump sum premium $25 $100

Minimum partial redemptions $25 $500

Redemptions subject to possible early redemption fee

No Yes

Minimum fund balance

$300 or $25 plus ongoing automatic monthly premium


6


RRIFs, PRIFs, LRIF, LIFs and RLIFs A RRIF is a plan that gives you regular income payments and is registered under the Income Tax Act (Canada).

You can generally only open a RRIF with money transferred directly from an RRSP or another RRIF. You can only open PRIFs, LRIFs and LIFs with money transferred directly from a pension plan, from a LRSP, LIRA or RLSP, or from another PRIF, LRIF, LIF or RLIF, where federal or provincial pension laws allow you to. We currently offer RRIFs and LIFs across Canada, LRIFs in Manitoba and PRIFs in Saskatchewan and Manitoba. RLIFs are only available where the money is administered under federal pension legislation.

Under the Income Tax Act (Canada), you must receive a minimum amount each year as income from these policies. For LRIFs and LIFs, there is also a maximum amount you may receive each year.

Only one person, who must also be the annuitant, can own a RRIF, PRIF, LRIF, LIF or RLIF.

As the required minimum amount under the Income Tax Act (Canada) cannot be determined until the first day of each year, we reserve the right not to make the first payment in each calendar year before the twentieth day of the first month.

The payment date selected cannot be later than the twenty-eighth day of a month.

Redemptions made from your policy may be subject to early redemption fees. For more information, see Early redemption fees for back-end load units.

You can schedule periodic income payments under your Freedom Fund RRIF. In a calendar year, you may receive up to 20 per cent of all allocated premiums in scheduled payments without incurring an early redemption fee. Amounts received in excess of 20 per cent may be subject to an early redemption fee. Unscheduled redemptions may be subject to early redemptions fees. For information concerning these fees, see Early redemption fees for back-end load units. For information about fees to change the amount or frequency of your payments, see Charge for changing the amount or frequency of your scheduled periodic income payments.



Product feature Freedom Fund

RRIF/PRIF/LRIF/LIF/RLIF

Maximum issue age for RRIFs, PRIFs, LRIFs, RLIFs and currently LIFs issued under Ontario, Alberta, Federal PBSA, British Columbia, Manitoba, Nova Scotia and Quebec pension legislation

90

Maximum issue age for LIFs issued under New Brunswick pension legislation

80

Maximum issue age for LIFs administered under Newfoundland and Labrador pension legislation

70

Minimum initial premium $10,000 Minimum lump-sum premium $1,000 Minimum automatic redemptions

Scheduled: Higher of legislative

minimum or $50 monthly

$100 quarterly or semi-annually $200 annually

Maximum: 20% of premiums per year

Minimum partial redemptions Unscheduled: $500 (May be subject to

early redemption fee) Minimum fund balance $300 Minimum exchange between funds $500


7


Beneficiaries You may designate one or more beneficiaries to receive any death benefit payable under the policy. You may revoke or change the designation prior to the policy maturity date, subject to applicable law. If the designation is irrevocable, you cannot revoke or change it or exercise certain other specific rights without the written consent of the irrevocable beneficiary.

If the policy is a LIRA, LRSP, RLSP, PRIF, LIF, RLIF or LRIF, your spouse, civil union spouse or common-law partner can take precedence over the beneficiary designation, depending on applicable pension legislation.

How our investment funds work

Each of our investment funds is a segregated fund, which is a pool of investments that is kept separate, or segregated, from the general assets of London Life. Each investment fund is divided into an unlimited number of notional units of equal value. For more information about unit value, see How we value investment fund units.

When you allocate money to the investment funds, units are allocated to your policy, but you do not actually own, buy or sell any part of the investment funds or any units. Instead, we hold the assets of the investment funds. This also means that you don’t have any voting rights associated with the investment funds. We calculate the value and the benefits to which you are entitled based on the value of the units allocated to your policy on a particular date.

Neither your policy nor your units give you an ownership interest in London Life or voting rights in connection with London Life. When you select an investment fund that invests in units of a mutual fund, you will not be a unitholder of the mutual fund.

If we make a material change to an investment fund’s fundamental investment objectives, we’ll tell you in writing 60 days before we make the change. For more information, see Fundamental changes to the investment funds.

If we stop offering an investment fund, we’ll tell you in writing in advance and we’ll give you 60 days to tell us what to do with your units that are affected. If we receive your request to transfer to another investment fund at our administration office in London, Ontario or Montreal, Quebec before 4 p.m. Eastern Time on a valuation day, we’ll process the request on that day. If

we receive your request after that time, we’ll process it on the valuation day after we receive your request. If we don’t hear from you at least five days before the valuation day the investment fund is discontinued, we’ll exchange the units of the investment fund that is discontinued for units of the Money Market Fund (Portico), or another investment fund we select according to our administrative rules in effect at the time.

We may change the investment strategies of an investment fund without notice to you.

It’s important to diversify your investments, which means investing in investment funds that have a variety of assets and investment styles. Through your policy, you can currently choose from 65 different investment funds. This broad choice provides a good opportunity for you to diversify your investments. In addition, currently, 19 of our investment funds are asset-allocation funds that are specially designed to increase diversification. We refer to our asset-allocation funds as Profile funds or Lifecycle Profile funds.

The performance of the various investment selections will affect the amount available for annuity payments. For more information, see When your policy matures.

Profile funds Each profile fund invests in a variety of other funds. They offer you an easy way to diversify your investments by investing in a single investment fund.

A profile fund may offer you diversification among:

Types of assets, such as shares, bonds, mortgages and real estate

The entities that issue the assets, such as shares in large, small or resource-based companies, and bonds issued by governments or companies

Assets in different countries Investment advisors with different investment styles We may review the composition of the profile funds from time to time. When required, we may change:

The funds the profile fund holds. The percentages of each fund the profile fund

intends to hold. The number of funds the profile fund may hold.

8


Lifecycle profile funds A lifecycle profile fund offers you an easy way to diversify your investments by investing in a single fund that matches your investment time horizon. Like our profile funds, the lifecycle profile funds have been modeled on Investment Voyager profiles, our asset-allocation process.

A lifecycle profile fund is managed towards a specific target date. Actively managed, each fund’s target mix is regularly rebalanced to provide an optimal risk and return for the selected investment time horizon. Each lifecycle profile fund gradually increases its allocation of fixed-income fund units, while reducing its allocation of equity fund units to provide the potential for more stable growth closer to the target date. When the lifecycle profile fund’s asset allocation becomes similar to the income profile fund, the lifecycle profile fund will be closed and the assets transferred to the income profile fund or a similar fund. For information about tax implications, see Income tax considerations.

Two profile funds – equity profile and fixed-income profile – allow you to modify the target mix of a lifecycle profile fund to match your personal tolerances for risk and return by increasing either the equity or fixed-income component of the portfolio.

The investment management fee may be reviewed periodically and reduced as the fixed-income fund allocation increases.

The composition of the lifecycle profile funds may be reviewed quarterly and the target fund mix updated. When the review occurs, we may change:

The funds the lifecycle profile fund holds. The percentages of each fund the lifecycle profile

fund holds. The number of funds the lifecycle profile fund

may hold.

Sales charge options

Back-end load units

The investment funds are available on a back-end load basis. With back-end load units, you don’t pay any fees when you allocate a premium to an investment fund or exchange units. However, if you redeem units within six years of allocating a premium to an investment fund, you will have to pay an early redemption fee, any applicable short-term trading fee, withholding taxes and other charges. For more information, see Early redemption fees for back-end load units.

No-load units

If you invest $100,000 or more with us, a no-load Freedom Fund option may be available. You, your financial security advisor and we must agree to the no-load option at the time of purchase. No-load units are available in non-registered and RRSPs policies.

We may waive the minimum requirement under certain circumstances.

Under this option you don’t pay any fees when you allocate a premium to an investment fund or exchange units. You will not pay an early redemption fee when you redeem units but you will have to pay any applicable short-term trading fee, withholding taxes and other charges.

How we value investment fund units Generally, we value our units at the close of business on each day the Toronto Stock Exchange is open for business. We have the right to change how often we value our units. We refer to any day that we value units as a valuation day. We’ll tell you in writing 60 days before we change the frequency that we value the units. For more information, see Fundamental changes to the investment funds.

When we value units, we calculate the unit value by dividing the total market value of that class of the fund by the number of units in that class of the fund. The market value of a class of a fund is the total market value of the assets in that class of the fund, less investment management fees and other expenses attributed to that class. For more information, see Fees and expenses.

When we calculate the market value of an asset held in an investment fund, we use the closing price of that asset. If a closing price is not available, we’ll determine the fair market value of the asset.

The value of investment fund units is not guaranteed because it fluctuates with the market value of the assets in the investment fund.

We have the right to subdivide or consolidate the units of an investment fund. If we subdivide the units of an investment fund, there will be a decrease in the unit value. If we consolidate the units of an investment fund, there will be an increase in the unit value. If we subdivide or consolidate the units of an investment fund, the market value of the investment fund and the market value of your policy will not change. We’ll tell you in writing 60 days in advance if we subdivide or consolidate the units of an investment fund.

We have the right to add funds, restrict the allocation of premiums or exchanges to any fund, discontinue an existing investment fund, or change the investment

9


objectives, policies and strategies of an investment fund.

We’ll tell you in writing 60 days before we discontinue an investment fund or make a material change to the fundamental investment objectives of an investment fund. For more information, see Fundamental changes to the investment funds.

All the investment funds currently available are described in detail later in this information folder. For more information about a specific fund, see the applicable investment fund page.

Fundamental changes to the investment funds If we make any of the following changes to an investment fund, we will notify you in writing 60 days before the change occurs. The notice will be sent by regular mail to the most recent address we have for you in our records.

Increase the investment management fee Material change to the fundamental investment

objectives Decrease the frequency with which the investment

fund is valued You will have the right to exchange the value of your units from the affected investment fund to a similar investment fund that is not subject to the fundamental change without charge provided you advise us at least five days prior to the change happening. We’ll advise you of similar investment funds that are available to you at that time.

If we do not offer a similar investment fund, you may have the right to redeem the investment fund without incurring an early redemption fee or similar fee provided you advise us at least five days prior to the change happening. We’ll advise you if this applies to you.

A similar investment fund is a fund within the same investment fund category that has a comparable investment objectives and the same or lower investment management fee.

During the transition period between the announcement and the effective date of the fundamental change, you will not be permitted to allocate premiums to or exchange into the affected investment fund unless you agree to waive your rights under the fundamental change provision for that particular fundamental change.

When an investment fund invests in an underlying mutual fund, an increase in the investment management fee of the underlying mutual fund that also results in an increase in the investment management fee of the investment fund would be treated as a fundamental change.

Allocating premiums, redeeming and exchanging investment fund units

You can make a request to allocate your premium to an investment fund or to redeem or exchange units at any time. However, we only process allocations, redemptions or exchanges on valuation days.

If we receive your request to allocate your premium to an investment fund or to redeem or exchange units at our administrative office in London, Ontario or Montreal, Quebec before 4 p.m. Eastern Time or before the Toronto Stock Exchange closes, whichever is earlier, on a valuation day, we’ll process the request on that day using that day’s unit value. If we receive your request after that time, we’ll process it on the next valuation day using the next day’s unit value. For more information, see How we value investment fund units.

When you ask us to allocate your premium to an investment fund or to redeem or exchange units, your instructions must be complete and in a manner acceptable to us, otherwise we will not be able to complete the transaction for you.

You can invest in up to 18 investment funds over the life of your policy.

We have the right to refuse to accept any request to allocate a premium to your policy or exchange to investment fund units. We also have the right to change any minimum amounts that are given in this information folder without notice.

If you choose to make a redemption, this will reduce the amount available for annuity payments. For more information, see When your policy matures.

How to allocate premiums to investment fund units You can allocate a premium to an investment fund available under the policy. You can also set up an automatic monthly transfer of money from your bank account to the investment funds. For information about minimum monthly premium amounts for the various policies, see How London Life investment policies work.

10


When you apply a premium to an investment fund, we allocate units to your policy. We determine the number of units to allocate to your policy by dividing the amount of the premium you have allocated to the investment fund, by the appropriate unit value of the investment fund. For more information, see How we value investment fund units.

How to redeem investment fund units Upon request and subject to our administrative rules you can redeem investment fund units on any valuation day. The value of your guarantees will be proportionally reduced when you redeem units. For more information, see Examples of how redeeming units affects the basic amount and reduces the guaranteed value.

When you request money from your policy, we will redeem the number of units required to fulfill your redemption request less any applicable taxes, fees or charges. You can request to redeem investment fund units on any valuation day.

You must keep a minimum dollar amount in units. Currently, if you have less than $300 in units, we may require that you redeem them.

When you redeem investment fund units, the value of those units is not guaranteed because it fluctuates with the market value of the assets in the investment fund.

You will have to pay an early redemption fee when you redeem back-end load units. Back-end load units older than six years may be redeemed without an early redemption fee. For more information, see Early redemption fees for back-end load units.

We will charge a short-term trading fee on a redemption when the units to be redeemed have not been held in the investment fund for the applicable period of time. For more information, see Short-term trading.

Under unusual circumstances, we may have to delay the redemption of units. For more information, see When the redemption of your units may be delayed.

There may be income tax consequences if you redeem units. For more information, see Income tax considerations.

Redemption requests involving transfers to or from registered plans may be delayed until all administrative procedures involved with registered plans are complete.

How to exchange investment fund units Upon request and subject to our administrative rules, you can exchange units of one investment fund in your policy for units of our other investment funds.

When you exchange units, you’re redeeming units of one or more investment funds and allocating their value to units of other investment funds.

We will charge a short-term trading fee on an exchange when the units to be exchanged have not been held in the investment fund for the applicable period of time. For more information, see Short-term trading.

Under unusual circumstances, we may have to delay the exchange of units. For more information, see When the redemption of your units may be delayed.

When you exchange investment fund units, the value of those units is not guaranteed because it fluctuates with the market value of the assets in the investment fund.

The value of your guarantee is not affected when you exchange units.

There are no early redemption fees when you exchange units.

There may be income tax consequences if you exchange units within a non-registered policy. For more information, see Income tax considerations.

Short-term trading Using investment funds to time the market or trading on a frequent basis is not consistent with a long-term investment approach based on financial planning principles. In order to limit such activities we will charge a short-term trading fee as outlined below. The short-term trading fee is retained in the investment fund as compensation for the costs associated with the exchange or redemption request.

We may take such additional actions as we consider appropriate to prevent further similar activity by you. These actions may include the delivery of a warning, placing you on a watch list to monitor activity, declining to accept allocations to and exchange and redemption requests from the investment funds, delay trades by one valuation day and suspend trading under the policy. We reserve the right to change our administrative practices or introduce new ones when we determine it is appropriate.

We will charge a fee of up to two per cent of the amount exchanged or redeemed if you allocate premiums to an investment fund for less than 90 consecutive days.

The fee is subject to change. This right is not affected by the fact that we may have waived it at any time

11


previously. We reserve the right to increase the period of time a premium must remain in an investment fund from 90 consecutive days to up to 365 consecutive days. We will give you written notice of our intent to increase the time period at least 60 days in advance. Our notice to you will specify the affected investment fund(s) and the new period of time. We will send the notice to your most recent address on our records for this policy.

When the redemption of your units may be delayed Under unusual circumstances, we may have to delay your redemption of units or postpone the date of a transfer or payment. This may happen if:

Normal trading is suspended on a stock exchange where the investment fund has a significant percentage of its assets, or

We believe it’s not practical to dispose of investments held in an investment fund or that it would be unfair to other unitholders

During such a delay, we’ll administer the redemption of units according to the applicable rules and laws and in a manner that we consider fair. We may have to wait until there are enough assets in the investment fund that can be easily converted to cash. If there are more requests to redeem units than we can accommodate, we’ll redeem as many units as we think is appropriate and allocate the proceeds proportionally among the investors who asked to redeem units. We’ll redeem any remaining units as soon as we can.

When your policy matures

Maturity date Most policies end – or mature – at a certain time. The maturity date varies depending on the type of policy you have.

For a non-registered policy, the maturity date is the date on which the annuitant attains age 100, and is not later than the twenty-eighth day of the month. If the twenty-eighth is not a valuation day then the maturity date will be the valuation day prior to the twenty-eighth of that month.

For an RRSP, the automatic maturity date is Dec. 28 of the year the annuitant attains age 71. You may also select an earlier maturity date between Sept. 1 and Dec. 28 of the year the annuitant attains age 71.

The maturity date for a LIF depends on the jurisdiction that governs your LIF. Some jurisdictions require that your LIF be converted to a life annuity. If your LIF is required to be annuitized, the maturity date will be Dec. 28 of the year stipulated in the regulations governing the LIF.

For RRIFs, PRIFs, LRIFs, LIFs and RLIFs that are not required to be annuitized under applicable pension legislation, there is no maturity date for a policy issued to non-Quebec residents. A LIF policy is not required to be annuitized under Quebec pension legislation and when issued to a Quebec resident there is no maturity date. For a RRIF policy issued to a Quebec resident, the maturity date is the date on which the annuitant attains age 100, and is not later than the twenty-eighth day of the month.

Currently Newfoundland and Labrador pension legislation requires a LIF to mature in the year you attain age 80 and annuity payments to commence.

Currently LIFs administered under New Brunswick pension legislation are not required to annuitize, however units of the investment funds must be fully redeemed and the policy closed by Dec. 28 of the year the annuitant attains 90.

Over time, regulators may change the rules that govern LIFs. We will change the terms of your LIF in accordance with any change in the regulations.

12


What happens to your policy on the maturity date On the maturity date of your policy, we will redeem your units. If your policy was a non-registered policy, you may have to pay tax as a result.

For RRSP policies (except RRSPs for which you first allocated a premium to the investment funds when the annuitant is age 60 or older), non-registered policies and RRIFs issued to residents of Quebec, if you do not indicate a preference for another type of annuity offered by us, following the maturity date we will commence life annuity payments with a guaranteed period of 10 years. The annuity payments are conditional on the annuitant being alive, and will be in equal annual or more frequent periodic amounts. We may require evidence that the annuitant is living when the payment becomes due. If the annuitant dies prior to the expiry of the guarantee period, any remaining unpaid guaranteed annuity payments due after the death of the annuitant will be paid to the beneficiary, if living or if the beneficiary is not living or no beneficiary designation has been made, to your estate. You may have to pay tax on the annuity payments. Payments are not commutable during the annuitant’s lifetime.

Premiums will not be accepted under the policy after the annuity payments commence.

If you first allocated premiums to investment funds in an RRSP when the annuitant is age 60 or older and you do not indicate a preference for another type of annuity then offered by us, we’ll commence payments on a RRIF basis.

If on the issue date of the policy, the policyholder is not a resident of Quebec, the amount of the annuity payments will be determined using the annuity rate in effect when the annuity payments commence.

If on the issue date of the RRSP, RRIF or non-registered policy, the policyholder is a resident of Quebec, the amount of the annuity payments will be determined by the greater of the annuity rate in effect when the annuity payments commence and the rate established in the policy.

Guaranteed benefits

Policies have two types of guaranteed benefits: the maturity guarantee and the death benefit guarantee.

Before the maturity date or the death of the annuitant, the value of investment fund units is not guaranteed because it fluctuates with the market value of the assets in the investment fund.

These guaranteed benefits apply if you first held investment funds in your policy after Nov. 20, 2001. If you held investment funds in your policy before Nov. 20, 2001, please refer to your contract for more information about your guaranteed benefits.

Basic amount The basic amount is used to calculate the value of the guaranteed benefits. In general, the basic amount is:

The total of all amounts allocated to units Minus a proportional reduction for any units

redeemed To calculate the proportional reduction for any units redeemed we use the following formula:

A x B ÷ C = reduction in the basic amount when:

A is the basic amount before the redemption

B is the value of the units redeemed

C is the value of the investment funds before the redemption

If early redemption fees, short-term trading fees or other charges apply, they are included as part of the amount of units redeemed. For more information, see Fees and expenses paid directly by you.

The basic amount is not affected by the exchanges between investment funds.

Maturity guarantee On the maturity date, we’ll pay you the greater of:

The market value of all your units less any early redemption fees (see Early redemption fees for back-end load units); or

The maturity value of your policy based on the basic amount

The maturity value of your policy is guaranteed to be not less than 75 per cent of the basic amount, for the following types of policies:

Non-registered if you first allocated a premium to an investment fund 10 years or more before the maturity date

13


RRSP if you first allocated a premium to an investment fund prior to the annuitant attaining age 60

RRIF issued to a Quebec resident LIF which is administered under Newfoundland and

Labrador pension legislation If you first allocated a premium to an investment fund in an RRSP when the annuitant was age 60 or older, there is no maturity guarantee unless the value of the units of the investment fund are paid out on a RRIF basis following the maturity date of the RRSP. The automatic maturity date of the RRSP is Dec. 28 in the year you attain age 71. If the value of the units of an investment fund is paid out on a RRIF basis, the maturity guarantee applies on Dec. 28 of the year you attain age 80. For such a RRIF, the maturity benefit is guaranteed to be not less than 75 per cent of:

The total of all premiums allocated to the investment funds in the RRSP

Minus a proportional reduction for any units redeemed from the RRSP/RRIF

We calculate this proportional reduction the same way we calculate the proportional reduction for the basic amount.

There is no maturity guarantee for any RRIF, PRIF, LRIF, LIF or RLIF that does not have a maturity date.

Death benefit guarantee We make a one-time, lump-sum payment of the death benefit if the last annuitant dies before your policy matures. We make this payment to the beneficiary of the policy. If there is no beneficiary, we make the payment to you (as the policyholder) or to your estate. This payment will be made upon receipt by us of satisfactory proof of death.

The amount of the death benefit will be calculated as of the day we receive notification of the death of the annuitant if received at our administrative office in London, Ontario or Montreal, Quebec before 4 p.m. Eastern Time on a valuation day. If received after that time, we’ll calculate the death benefit as of the next valuation day.

The death benefit is the greater of:

The market value of all units allocated to investment funds; or

The death benefit guarantee

The death benefit guarantee depends on the age of the annuitant when the policy was issued. If the annuitant was:

Under age 80, it’s 100 per cent of the basic amount Age 80 and over, it’s 75 per cent of the basic amount We do not deduct early redemption fees from the death benefit.

If you have a RRIF and your spouse or common-law partner is the beneficiary, instead of receiving a one-time, lump-sum payment, you may choose to have your spouse or common-law partner become the policyholder and annuitant of the policy and continue to receive the regular income payments. In this case, we will pay the death benefit on the death of the final annuitant.

The death benefit guarantee no longer applies upon termination of your policy. This can occur:

Once your policy matures; or When you transfer the value of your units to another

policy

Examples of how redeeming units affects the basic amount and reduces the guaranteed value Let’s assume you are under age 80 and you allocated the following premiums to the investment fund:

Date Investment Fund Amount you allocated to the investment fund

July 1, 2015

Canadian Equity (London Capital) $10,000

July 1, 2016

Canadian Equity (London Capital) $10,000

After the second premium allocation, your policy will have the following values:

Basic amount $20,000

Maturity guarantee $20,000 x 75% = $15,000

Death benefit guarantee $20,000 x 100% = $20,000

Let’s also assume that on July 1, 2017, you redeem units of the Canadian Equity (London Capital) fund for $4,950.

14


If the market value is greater than the basic amount

Let’s assume that on July 1, 2017, before you redeem the units, the market value of your Canadian Equity (London Capital) units is $22,000.

Your basic amount would be reduced according to the formula:


A = the basic amount before the redemption ($20,000)

B = the value of the units redeemed ($4,950)

C = the market value of the investment funds before the redemption ($22,000)

$20,000 x $4,950 ÷ $22,000 = $4,500

Your policy would now have the following values:

Basic amount $20,000 - $4,500 = $15,500

Maturity guarantee $15,500 x 75% = $11,625 Death benefit guarantee $15,500 x 100% = $15,500

If the market value is less than the basic amount

Let’s assume that on July 1, 2017, before you redeem the units, the market value of your Canadian Equity (London Capital) units is $18,000.

Your basic amount would be reduced according to the formula:


A = the basic amount before the redemption ($20,000)

B = the value of the units redeemed ($4,950)

C = the market value of the investment funds before the redemption ($18,000)

$20,000 x $4,950 ÷ $18,000 = $5,500

Your policy would now have the following values:

Basic amount $20,000 - $5,500 = $14,500

Maturity guarantee $14,500 x 75% = $10,785 Death benefit guarantee $14,500 x 100% = $14,500

When the guaranteed benefits end These benefits end on the earlier of one of the following dates:

The maturity date, once we’ve paid the maturity benefit

The date the last annuitant dies, once we’ve paid the death benefit; or

The date the policy is surrendered for its full value

Fees and expenses

This section explains the fees and expenses you pay to us for managing the investment fund and paying for the guarantees (see Fees and expenses paid directly by the investment fund).

The total cost of investing in an investment fund (known as the MER) is the sum of the investment management fee and the expenses to operate the investment fund. This is further explained below, but in order to find out how much each investment fund will cost you to hold in your policy, you want to look at the MER. The MER for an investment fund available under the policy is shown on its Fund Facts, which is located in the second half of this information folder.

You may also have to pay other fees and expenses as described under Fees and expenses paid directly by you, but these are generally costs that depend on actions taken by you, and will not be imposed unless you do something specific (for example, redeeming your units prematurely), or request a specific additional service (for example, extra copies of annual statements).

Fees and expenses paid by the investment fund

Management expense ratio (MER)

The MER is made up of the investment management fee and operating expenses (see below), expressed as an annualized percentage of the investment fund’s average net assets for the year. You do not directly pay the MER. The investment management fee and operating expenses are paid from the investment fund before the unit value of an investment fund is calculated.

15


The MER of an investment fund is subject to change without notice. The current MER is found on its Fund Facts, which is located in the second half of this information folder.

The updated MER is published each year in the audited financial statements, which are available on or about April 30 of each year. For more information on how to obtain these statements, see Requests for Fund Facts, financial statements and other documents.

Investment management fees

An investment management fee, which is a percentage of the market value of each investment fund, plus applicable taxes, is deducted from each investment fund on a valuation day and paid to us before we calculate that investment fund’s unit value. The amount of the investment management fee varies depending on the investment fund. The current investment management fees are shown in the table Annual investment management fees.

When an investment fund invests in an underlying fund, there is no duplication of investment management fees. See Fund-of-Fund.

Operating expenses

In addition to investment management fees, we charge other expenses to the investment funds. These expenses are for the operation of the investment funds and your policy. They include legal, safekeeping, brokerage, administration, audit fees and taxes. These expenses vary from year to year and from investment fund to investment fund. We deduct these other expenses, plus applicable taxes, from each investment fund on a valuation day, before we calculate that investment fund’s unit value.

Fund-of-fund

Where the investment fund invests in an underlying fund, the fees and expenses payable in connection with the management, operation and administration of the underlying fund are in addition to those payable by the investment fund. As a result, the investment fund pays its own fees and expenses and its proportionate share of the fees and expenses of the underlying fund, and accordingly this is reflected in the total investment management fee and management expense ratio charged by the investment fund. However, there will be no duplication in the payment of investment management fees in such circumstances.

16


Annual investment management fees

The following table shows the current investment management fees for each of our investment funds.

We have the right to change the investment management fee at any time. If we increase the investment management fee, we’ll tell you in writing 60 days before we make the change. For more information, see Fundamental changes to the

investment funds.

Fund name Investment management fee

Asset-allocation funds

Conservative Profile (PSG) 2.20%

Moderate Profile (PSG) 2.40%

Balanced Profile (PSG) 2.55%

Advanced Profile (PSG) 2.65%

Aggressive Profile (PSG) 2.70%

Lifecycle profile funds

Income Profile (PSG) 2.35%

2010 Profile (PSG) 2.35%

2015 Profile (PSG) 2.35%

2020 Profile (PSG) 1 2.45%

2025 Profile (PSG) 1 2.55%

2030 Profile (PSG) 1 2.60%

2035 Profile (PSG) 1 2.60%

2040 Profile (PSG) 1 2.65%

2045 Profile (PSG) 1 2.65%

2050 Profile (PSG) 1 2.70%

Cash and cash equivalent funds

Money Market (Portico) 1.05%

Fixed-income funds Fixed Income Profile (PSG) 2.00% Core Bond (Portico) 1.65% Core Plus Bond (Portico) 1.85% Mortgage (Portico) 2.05% Government Bond (Portico) 1.65%

Balanced funds Income (Portico) 1.85% Income (Mackenzie) 1.90% Diversified (London Capital) 2.35%

Balanced Growth (GWLIM) 2.30%

17



North American Balanced (London Capital) 2.30%

Equity/Bond (GWLIM) 2.30%

Canadian Balanced (Mackenzie) 2.45%

Growth & Income (Mackenzie) 2.25%

Balanced (Beutel Goodman) 2.45% Global Income (Sentry) 2.45%

Global Monthly Income (London Capital) 2.35%

Canadian equity funds Canadian Equity Profile (PSG) 2.60%

Equity Profile (PSG) 2.70%

Canadian Low Volatility (London Capital) 2.45% Canadian Equity (London Capital) 2.40%

Canadian Equity (GWLIM) 2.40% SRI Canadian Equity (GWLIM) 2.45% Growth Equity (Laketon) 2.45% Canadian Equity Growth (Mackenzie) 2.55% Canadian Equity Growth (CC&L) 2.65% Equity (Mackenzie) 2.55% Canadian Equity (Beutel Goodman) 2.55% Dividend (GWLIM) 2.30%

Dividend (Mackenzie) 2.45%

Mid Cap Canada (GWLIM) 2.55%

Growth Equity (AGF) 3.00%

Canadian specialty and alternative funds Real Estate (GWLRA) 2.70% Canadian Resource (Mackenzie) 3.00% Precious Metals (Mackenzie) 3.00%

North American funds Smaller Company (Mackenzie) 2.60% Science and Technology (GWLIM) 2.70%

Foreign equity funds Global Equity Profile (PSG) 2.85% Global Low Volatility (ILIM) 2.60% Foreign Equity (Mackenzie) 2.65% Global Equity (Putnam) 2.65%

18



Global Growth (Mackenzie) 2.75% U.S. Equity (London Capital) 2.50% U.S. Growth (Putnam) 2.75% American Growth (AGF) 2.85% U.S. Mid Cap (GWLIM) 2.70% International Equity (JPMorgan) 2.65% International Growth (Mackenzie) 2.70%

Foreign specialty and alternative funds European Equity (Setanta) 2.80% Far East Equity (CLI) 2.80%

1 The investment management fee may be reviewed periodically and reduced as the fixed-income fund allocation increases.

Fees and expenses paid directly by you You may have to pay the following fees and expenses directly when you invest in a policy:

Early redemption fee for back-end load units Charge for changing the amount or frequency of

your scheduled periodic income payments Charge for duplicate RRSP receipts and tax slips Policy research fee Short-term trading fee Returned cheque fee Courier fee These fees and expenses are explained in more detail below.

You do not pay for the following services:

Establishing non-registered or registered policies. Pre-authorized payment agreement (PPA). Scheduled periodic income payment. Exchanges between investment funds unless you

have been in the investment fund for less than the applicable period. For more information, see Short-term trading fee below, and Short-term trading.

We reserve the right to charge fees for additional services from time to time and to change the amount or the nature of the fees and expenses paid by you at any time. Early redemption fees for back-end load units

You will pay an early redemption fee as set out in this section if you redeem back-end load units within six

years of the premium being allocated to an investment fund. The redemption fee is a specified percentage of the amount redeemed, and it declines over time.

For non-registered Freedom Fund systematic redemption plans and RRIFs, you can schedule periodic income payments. In a calendar year you may receive up to 20 per cent of all allocated premiums in scheduled payments without incurring an early redemption fee. You will pay an early redemption fee on any amounts received in excess of 20 per cent. Unscheduled redemptions prior to the sixth anniversary of the last premium paid will be subject to early redemption fees as set out in this section.

If you choose to make a redemption, this will reduce the amount available for annuity payments.

The following table shows how the amount of the early redemption fee decreases the longer the units are allocated to your policy.

Number of years you’ve held your units when you redeem them

Early redemption fee

1 5.0%

2 5.0%

3 4.0%

4 3.0%

5 2.5%

6 1.0%

More than 6 0.0%

19


Early redemption fees are calculated for each investment fund separately. To reduce the amount of early redemption fees you have to pay, we redeem the back-end load units you have held the longest first. When you exchange units, the oldest units in an investment fund are exchanged first. These units retain their age for the purpose of determining early redemption fees in the new investment fund. When you exchange units we do not charge early redemption fees.

We do not deduct early redemption fees when we pay the death benefit.

For more information about redeeming units, see How to redeem investment fund units.

Charge for changing the amount or frequency of your scheduled periodic income payments

We may charge up to $60 if you change the amount or frequency of your scheduled periodic income payments more than once per year.

Charge for duplicate RRSP receipts or tax slips

We will give you one duplicate RRSP receipt or tax slip for the current tax year without charge, if you ask for it. We may charge $25 for duplicates of RRSP receipts and tax slips issued in all prior years.

Policy research fee

We may charge up to $15 per year of policy history or $35 per hour for researching your policy. You will be advised of the fee before the research begins.

Short-term trading fee

We may charge a short-term trading fee of up to two per cent of the amount exchanged or redeemed if you invest in an investment fund for less than the applicable period. The fee is subject to change. For more information, see Short-term trading.

Returned cheque fee

If your pre-authorized payment is returned by your financial institution, we may charge up to $20 to cover the cost of processing.

Courier fee

If you request a cheque be sent by courier, we may charge a courier fee.

Income tax considerations

This is a general summary of income tax considerations for Canadian residents. It is based on the current Income Tax Act (Canada) and does not take into account any provincial tax laws. The summary does not include all possible tax considerations.

The taxation of certain benefits available with these annuities is not certain at this time. You are responsible for the proper reporting of all taxable income and payment of all related taxes. This summary is not intended to offer you tax advice. You should consult your tax advisor about the tax treatment of these annuities for your personal circumstances.

Tax status of the investment funds The investment funds are not separate legal entities. They fall under the definition of segregated funds in the Income Tax Act (Canada). For tax purposes, our investment funds are deemed to be trusts that are separate entities from London Life. The assets of the investment funds are kept separate from our general assets.

The investment funds generally do not pay income tax because throughout the year, all their income and realized capital gains and losses are allocated to you and other investment fund unitholders.

The investment funds may have foreign tax withheld on income that is earned by non-Canadian investments.

Non-registered plans For income tax purposes, you must report the following investment income that is allocated to you by the investment funds:

Interest Dividends from taxable Canadian companies Taxable capital gains or losses Any other investment income allocated to you When you redeem units of an investment fund, you will realize a capital gain or a capital loss, which you must report. Your capital gain (loss) generally will be the amount by which the value of the redemption exceeds (is less than) the adjusted cost base of the units being redeemed. Any exchange will be treated the same as a redemption of your units.

Death of the policyholder or transfer of ownership of the policy may create capital gains that must be reported.

20


Once a year, we’ll send you tax reporting slips that show amounts that must be reported for income tax purposes. These slips will include the capital gain or loss on the redemption or exchange of your units as well as allocations from the investment funds. The slips will also include any capital gain or loss arising from rebalancing of investment fund assets, investment fund discontinuance or an underlying fund substitution.

The tax information we provide to you will not include adjustments for transactions that generate superficial losses under the Income Tax Act (Canada). To avoid the creation of superficial losses that will be denied for income tax purposes, we recommend you avoid allocating premiums to an investment fund within 30 days before or after redeeming units of that same investment fund.

Any premiums you allocate to a non-registered policy are not tax deductible.

The tax treatment of a top-up maturity or death benefit guarantee payment is not certain at this time. We recommend that you contact your tax advisor regarding the tax treatment of top-up payments for your particular circumstances.

We will report top-up guarantee payments based on our understanding of the tax legislation and the Canada Revenue Agency (CRA) assessing practices at that time. You are responsible for any tax liabilities arising from any change in law, interpretation or CRA assessing practices.

RRSPs An RRSP is registered under the Income Tax Act (Canada) as a registered retirement saving plan. Generally, the contributions you make to your RRSP are tax-deductible up to a certain limit.

You do not have to report investment income allocated to you by the investment funds in the year the income is earned. However, for income tax purposes, you must report any redemption you make, unless the money is transferred directly to another plan registered under the Income Tax Act (Canada). Tax will be withheld on redemptions.

Payment of top-up maturity or death benefit guarantees into the policy is not taxable. All amounts withdrawn from the registered policy are taxable.

RRIFs A RRIF is registered under the Income Tax Act (Canada) as a registered retirement income fund. You can only open a RRIF with money transferred from another policy registered under the Income Tax Act (Canada).

You do not have to report investment income that is allocated to you by the investment funds in the year that it’s earned. However, all redemptions are taxable each year and tax may be withheld on these payments. Current income tax regulations require us to withhold income tax on any amount that is redeemed that is in excess of the minimum income.

Generally, the transfers you make to a RRIF are not tax-deductible.

Payment of top-up maturity or death benefit guarantees into the policy is not taxable. All amounts withdrawn from the registered policy are taxable.

Administration of the investment funds

Keeping you informed You will be sent a statement as at the end of June and December. The statement will give you the following information:

The total number of units, unit value and market value for all the investment funds in your policy on the statement date

Dollar amount and number of units transferred to and from each investment fund for the statement period

Any income payments made during the statement period for a RRIF, PRIF, LRIF, LIF or RLIF

Any early redemption fees charged for back-end load units for the statement period

Any written communications will be sent to the most recent address in our records for the policy. Please tell us promptly if your address changes.

Please review your statement and advise your financial security advisor or our administrative office at the address located on the inside front cover if they do not agree with your records. Any discrepancies must be reported in writing within 60 days of receiving the statement.

We may change the frequency or content of your statement, subject to applicable laws.

21


Requests for Fund Facts, financial statements and other documents The most current Fund Facts for each investment fund is available upon request to London Life at the address on inside front cover or by visiting our website at www.londonlife.com.

The most recent annual audited financial statements and semi-annual unaudited financial statements for the investment funds are available upon request from your financial security advisor, by writing to London Life’s head office at the address on inside front cover, or by visiting our website at www.londonlife.com.

The annual audited financial statements will be available to you after April 30 and the semi-annual unaudited financial statements will be available after Sept. 30 of each year.

In addition, copies of the simplified prospectus, annual information form, unaudited semi-annual financial statements, audited financial statements and interim and annual management reports of fund performance of the underlying funds are available upon request from your financial security advisor.

Material contracts In the last two years, we haven’t entered or amended any contracts that are material to policyholders who invest in our investment funds.

There are no material facts of which London Life is aware which relate to the policy that are not disclosed in this information folder.

The auditor of the investment funds is Deloitte & Touche LLP. Deloitte is located at 360 Main Street, Suite 2300, Winnipeg, Manitoba, R3C 3Z3.

Material transactions In the last three years, no director, senior officer, associate or affiliate of London Life has had any material interest, direct or indirect, in any transaction or in any proposed transaction that would materially affect the investment funds.

We don’t retain a principal broker for buying or selling the underlying investments in the investment funds. We usually arrange these investment transactions through many different brokerage houses.

Assuris protection Assuris is a not-for-profit corporation, funded by the life insurance industry that protects Canadian policyowners against loss of benefits due to the financial failure of a member company. Details about the extent of Assuris’s protection are available at www.assuris.ca or in its brochure, which can be obtained from your financial security advisor, life insurance company, www.assuris.ca or by calling 1-866-878-1225.

Investment policy

We have established investment and lending policies that we believe are reasonable and prudent. The investment policies comply with:

Federal and provincial pension benefits standards laws

Canadian Life and Health Insurance Association Inc. (CLHIA) Guidelines on Individual Variable Insurance Contracts Relating to Segregated Funds approved by the Canadian Council of Insurance Regulators, as may be amended from time to time

Autorité des marches financiers (AMF) Guideline on Individual Variable Insurance Contracts Relating to Segregated Funds, as amended, and approved by Autorité des marches financiers

all as may be amended from time to time.

The investment funds may achieve their investment objectives and/or investment strategies by either investing directly in securities or in units of one or more underlying funds that have similar investment objectives of the investment fund. If the underlying fund is a mutual fund, the fundamental investment objectives of the mutual fund cannot be changed unless approved by the mutual fund unitholders. If such a change is approved, we will give you notice of the change.

We may update an investment fund’s investment strategy, including the removal or substitution of underlying funds, without notice to you.

The earnings of each investment fund are reinvested in the same investment fund according to its investment objectives and investment strategies. The investment funds may lend securities in a manner that is prudent, in the interest of the investment fund, and in compliance with any applicable laws.

22


The London Life Real Estate Fund (GWLRA) is the only investment fund that may borrow to buy securities. For more information, see Real Estate Fund (GWLRA). The other investment funds do not borrow money except for the purpose of funding redemptions (and only to the extent permitted by applicable regulatory requirements).

For a summary of an investment fund’s investment policy, see the Fund Facts section. A detailed description of each fund’s investment objective and strategies is available upon request from London Life at the address on the inside of the front cover. In addition, you may request information about the underlying funds, including audited financial statements of the underlying funds by contacting your financial security advisor.

The sum of an investment fund’s exposure to any one corporate entity will not exceed 10 per cent of the value of the investment fund at the time of investment. Furthermore, the percentage of securities of any one corporate issue that may be acquired is limited to 10 per cent of each class of securities of any one corporate issuer, except for any corporate issue of, or a government security guaranteed by, any government authority in Canada. We will not, in respect of any investment fund, invest in securities of an issuer for the purpose of exercising control or management.

Performance of investment funds and underlying funds The investment objectives and investment strategies of the investment funds are in many cases similar to the objectives and strategies of a corresponding fund sponsored by the investment managers. Although the funds have these similar objectives and strategies, and in most cases will have investment portfolios managed by the same individuals, the performance of the underlying funds and the corresponding investment funds will not be identical.

Investment managers

We have the right to appoint or change investment managers to provide investment management, investment advisory and related services necessary for the investment and management of investment fund property. We will advise you of any change to an investment manager.

London Life currently retains the following investment managers for our investment funds.

AGF Investments Inc. located at P.O. Box 50, Suite 3100, Toronto-Dominion Bank Tower, Toronto, Ontario, M5K 1E9.

Beutel, Goodman & Company Ltd. located at 20 Eglinton Avenue West, Suite 2000 P.O. Box 2005, Toronto, Ontario, M4R 1K8.

Canada Life Investments located at 1-6 Lombard Street, London, England, EC3V 9JU. Canada Life Investments is the brand for investment management activities undertaken by Canada Life Asset Management Limited.

Connor, Clark & Lunn Financial Group located at 181 University Avenue, Suite 300, Toronto, Ontario, M5H 3M7.

GLC Asset Management Group Ltd. located at 255 Dufferin Avenue, London, Ontario, N6A 4K1. GLC Asset Management Group Ltd. manages their investment mandates through five investment management divisions – London Capital Management (London Capital), GWL Investment Management (GWLIM), Laketon Investment Management (Laketon), Portico Investment Management (Portico) and Portfolio Solutions Group (PSG).

GWL Realty Advisors located at 830-33 Yonge Street, Toronto, Ontario, M5E 1G4.

Irish Life Investment Managers Limited, located at Beresford Court, Beresford Place, Dublin 1, Ireland

JPMorgan Asset Management (Canada) Inc. located at Royal Bank Plaza, South Tower 200 Bay Street, Suite 1800, Toronto, Ontario, M5J 2J2 or 999 West Hastings Street, Suite 600, Vancouver, British Columbia, V6C 2W2.

Mackenzie Investments located at 180 Queen Street West, Toronto, Ontario, M5V 3K1. Mackenzie Investments is the brand for investment management activities undertaken by Mackenzie Financial Corporation.

23


Putnam Investments Canada ULC c/o Legal Department located at 180 Queen Street West, Toronto, Ontario or One Post Office Square, Boston, Massachusetts, 02109.

Sentry Investments Inc., located at 199 Bay Street, Suite 2700, P.O. Box 108, Toronto, Ontario, M5L 1E2

Setanta Asset Management Limited located at College Park House, 20 Nassau Street, Dublin 2, Ireland.

GLC Asset Management Group Ltd. and GWL Realty Advisors Inc. are wholly owned subsidiaries of The Great-West Life Assurance Company. Putnam Investments Canada ULC and Irish Life Investment Managers Limited are wholly owned subsidiaries of Great-West Lifeco Inc. Setanta Asset Management Limited and Canada Life Investments are wholly owned subsidiaries of The Canada Life Assurance Company. Canada Life is a wholly owned subsidiary of Great-West Life. The Great-West Life Assurance Company and Mackenzie Investments are members of the Power Financial Corporation group of companies. Policies are in place to avoid any potential conflicts of interest.

Investment manager review process We offer a wide range of investment funds diversified by investment management style, asset class, market capitalization and region. London Life employs a disciplined review process to select and monitor its investment managers.

Through our investment manager review process, we regularly review and monitor investment managers against our standards and established expectations.

These reviews include:

A review of performance – absolute and risk-adjusted – and the consistency of this performance relative to their peer group and benchmark

A review of the investment policies and procedures of the investment fund to ensure the fund objectives, risk tolerances and investment constraints are being met

A review of qualitative factors such as portfolio turnover and consistency of style

Our review is carried out by our investment manager review committee. This committee consists of members of senior management with a wide variety of business and investment qualifications.

Fund risks

Investment funds hold different types of investments – stocks, bonds, other funds, cash – depending on what the fund invests in. Different kinds of investment funds are subject to different risks. The value of the investment funds will vary from day to day because of various factors including changes in interest rates, economic conditions, and market and company news. As a result, the value of investment fund units may go up and down, and the value of your investment may have increased or decreased when you redeem it.

Although you can never eliminate risk, you can reduce the risk through diversification, which means investing in a variety of different investments. You can achieve diversification by investing in an asset allocation fund or investing in several investment funds with different risks.

In certain circumstances, an investment fund may suspend redemptions. For more information, see When the redemption of your units may be delayed.

On each Fund Facts page the section Who is this fund for? can help you decide if the investment fund might be suitable for you.

As well, on each Fund Facts page the investment funds have been rated as to how risky they are - very low to high - in the section How risky is it? This rating, where applicable, has been determined using historical volatility risk as measured by the standard deviation of fund performance. Other types of risk, both measurable and non-measurable, may exist and an investment fund’s historical volatility may not capture all potential risks or be indicative of its future volatility. For example, a fund with a very low or low risk level would be more appropriate for an investor with a short time horizon and seeking capital preservation. A fund with a high risk level would be more appropriate for a long-term investor seeking to grow their capital and can tolerate the up and downs of the stock market. These ratings are meant as a general guide only. You should consult with your financial security advisor who can help you determine your appropriate risk level.

Below is a summary of various types of risks that may apply to the investment funds.

24


Commodity risk

An investment fund that invests in energy and natural resource companies, such as oil, gas, mining and gold, will be affected by changes in commodity prices. Commodity prices tend to be cyclical and can move dramatically in short periods of time. In addition, new discoveries or changes in government regulations can affect the price of commodities.

Credit risk

Credit risk is comprised of default risk, credit spread risk and downgrade risk. Each can have a negative impact on the value of a fixed-income security.

Default risk is the risk that the issuer of a bond or other fixed-income security may not be able to pay the interest or the principal at maturity. This risk can change during the term of the fixed-income investment.

Credit-spread risk is the risk that there will be an increase in the difference between the interest rate of an issuer’s bond and the interest rate of a bond that is considered to have little associated risk, such as a government bond. The difference between these interest rates is called credit spread. An increase in credit spread will decrease the value of that security.

Downgrade risk is the risk that a specialized credit rating agency, such as Standard & Poor’s or Dominion Bond Rating Services will reduce the credit rating of an issuer’s securities. Downgrades in credit rating or other adverse news regarding an issuer can decrease a security’s market value.

Derivative risk

Derivatives are securities that have values that are based on, or derived from an underlying asset, interest rate, exchange rate or market index. They are used to reduce the risks associated with changes in interest rates and exchange rates and to enhance returns. When derivatives are used for a non-hedging purpose, it allows the investment funds to invest indirectly in the returns of one or more stocks or an entire index without actually buying the stock(s) or all the stocks in the index.

There are a number of risks associated with derivatives:

The value of a derivative may change due to changes in the market price of securities, interest rates or exchange rates.

It may be difficult to sell a derivative in time to avoid a loss or realize a gain because there aren’t enough securities trading in the market.

There is also a risk that one party to a derivative may

fail to make a promised payment. The profile funds and investment funds that invest directly in an underlying fund don’t invest directly in derivatives. Most of the other investment funds may use derivatives for hedging or reducing risk. They may also use derivative instruments for non-hedging purposes in order to invest indirectly in securities or financial markets and gain exposure to other currencies provided that the use of derivative instruments is consistent with the investment fund’s investment objectives. The investment manager may not use derivatives for leverage or pledge the fund’s assets as part of any derivative transaction.

Derivatives fall into four basic groups: interest rate contracts, foreign exchange contracts, equity contracts and commodity contracts. Within each of these groups there are different types of derivatives. The most common types are:

Options Interest rate swaps An option is a contract that gives the holder of the option the right, but not the obligation, to buy or sell an asset at a specified price within a certain period of time.

An interest rate swap is an agreement to trade the interest payments from one security for those of another over a certain period of time. The principal amount of a security is not exchanged in an interest rate swap.

The investment manager may use derivatives that are traded on exchanges and sold over the counter. Over-the-counter derivatives are subject to additional restrictions set by guidelines and regulations.

Equity risk

Equity investments, such as stocks, carry several risks. The value of shares is affected by stock market conditions where the company’s shares trade, by factors related to each specific company, in terms of its business, prospects, management and capitalization and by general economic and financial conditions in the countries where the company operates. Equity investment funds generally tend to be more volatile than fixed-income investment funds and the value of their securities can vary widely.

25


Fixed-income investment risk

Fixed-income investments, such as bonds, carry several risks. In addition to credit risk and interest rate risk, a number of other factors may cause the price of a fixed-income investment to fall. For investments in corporate fixed-income instruments, factors include developments related to each specific company and general financial, economic (other than interest rates) and political conditions in the countries where the company operates. For government fixed-income investments, factors include general financial, economic and political conditions.

Foreign currency risk

The net asset value of a segregated fund is calculated in Canadian dollars. The value of securities issued in foreign currencies is affected by changes in the value of the Canadian dollar relative to those currencies. If the Canadian dollar goes down relative to a foreign currency, the value of an investment held in that currency goes up. This change results in an increase in the unit value of the investment fund. The reverse occurs when the dollar goes up against a currency.

Foreign investment risk

Foreign investment risk is the risk of financial loss due to investing in foreign markets. The value of the securities of the investment fund may be affected by general global economic conditions and specific economic conditions in a particular country. The regulatory environment may be less stringent than in North America and many of these companies and governments do not have the same accounting, auditing and reporting standards that apply in North America. The legal systems of some foreign countries may not adequately protect investors. Some foreign stock markets have less trading volume than North American markets, making it more difficult to buy or sell investments. Trading large orders in foreign countries may cause the price to fluctuate more than it would in North America. A country may impose withholding or other taxes that could reduce the return on the investment or it may have foreign investment or exchange laws that make it difficult to sell an investment. There may be political or social instability in the countries in which an investment fund invests.

Interest rate risk

Interest rate risk is the risk of economic loss caused by changes in interest rates. The value of fixed-income securities will change inversely with a corresponding change in interest rates: as interest rates decrease, the value of fixed-income securities will increase, and as interest rates increase, the value of fixed-income securities will decrease. Fixed-income securities with longer terms-to-maturity are generally more sensitive to interest rate changes than those of shorter terms-to-maturity.

Large redemption risk

Some investment funds may have particular investors, including other investment funds, who own a large proportion of the outstanding units. If one of those investors redeems a large amount of his or her investment, the investment fund may have to sell its portfolio investments at unfavourable prices to meet the redemption request. This can result in significant price fluctuations to the net asset value of the investment fund, and may potentially reduce the returns of the investment fund.

Real estate risk

The Real Estate Fund (GWLRA) is the only investment fund that invests directly in real estate. Portfolio funds invest in the Real Estate Fund (GWLRA). The Real Estate Fund (GWLRA) and investment funds that invest in the Real Estate Fund (GWLRA) could experience a delay when a redemption request is made due to the relative illiquidity of its real estate holdings.

Real estate by nature is not a liquid asset. There is no formal market for trading in real property and very few records are available to the public that give terms and conditions of real property transactions. It may take time to sell real estate investments at a reasonable price. This could limit the investment fund’s ability to respond quickly to changes in economic or investment conditions. It could also affect the investment fund’s ability to pay policyholders who want to redeem their units. The investment fund will keep enough cash on hand to be able to pay for the normal amount of redemption requests in a timely manner. However, redemptions may be suspended during any period the investment fund does not have sufficient cash or readily marketable securities to meet requests for redemptions. For more information, see When the redemption of your units may be delayed.

26


The unit value of the Real Estate Fund (GWLRA) will vary with changes in the real estate market and in the appraised values of the properties the investment fund holds. The value of real estate investments can vary with competition, how attractive the property is to tenants and the level of maintenance. The timing of the appraisal may also affect the value of the investment fund units.

The Real Estate Fund (GWLRA) should be considered as a long-term investment and is not suitable for investors who may need to quickly convert their holdings to cash.

In the event the Real Estate Fund (GWLRA) is dissolved, policyholders may receive less than the unit value because the unit value is based on appraisals, which may be greater than the amounts received upon the sale of properties pursuant to a liquidation.

Securities lending, repurchase and reverse repurchase transaction risk

In securities lending transactions, the investment fund lends its portfolio securities to another party (often called counterparty) in exchange for a fee and a form of acceptable collateral. In a repurchase transaction, the investment fund sells its portfolio securities for cash while at the same time it assumes an obligation to repurchase the same securities for cash, usually at a lower cost, at a later date. In a reverse repurchase transaction, the investment fund buys securities for cash while agreeing to resell the same securities for cash, usually at a higher price, at a later date. Below are some of the general risks associated with entering into securities lending, repurchase and reverse repurchase transactions:

When entering into securities lending, repurchase and reverse repurchase transactions, the investment fund is subject to the credit risk that the counterparty may default under the agreement and the investment fund would be forced to make a claim in order to recover the investment.

When recovering its investment on a default, the investment fund could incur a loss if the value of the securities loaned (in a securities lending transaction) or sold (in a repurchase transaction) has increased in value relative to the value of the collateral held by the investment fund.

Similarly, an investment fund could incur a loss if the value of the portfolio securities it has purchased (in a reverse repurchase transaction) decreases below the amount of cash paid by the investment fund to the counterparty.

Short selling risk

Certain funds may engage in a disciplined amount of short selling. A short sale is when a fund borrows securities from a lender and then sells the borrowed securities in the open market. The fund must repurchase the securities at a later date in order to return them to the lender. In the interim, the proceeds from the short sale are deposited with the lender and the fund pays interest to the lender in respect of the borrowed securities. If the value of the securities declines between the time that the fund borrows the securities and the time it repurchases and returns the securities, the fund makes a profit for the difference (less any interest the fund pays to the lender). However, there is a risk that the prices of the borrowed securities will rise, and the fund will experience a loss. The fund may also experience difficulties repurchasing and returning the borrowed securities if a liquid market for the securities does not exist. In addition, there is a risk that the lender from whom the fund has borrowed securities may go bankrupt before the repurchase transaction is completed, causing the fund to forfeit the collateral it has deposited with the lender for the borrowed securities. When a fund engages in short selling it adheres to controls and limits that are intended to offset these risks by selling short only securities of larger issuers for which a liquid market is expected to be maintained and by limiting the amount of exposure for short sales. The fund also deposits collateral only with lenders that meet certain criteria for creditworthiness and only up to certain limits. Although segregated funds may not themselves engage in short selling, they may be exposed to short selling risk because the underlying funds in which they invest may be engaged in short selling. Smaller company risk

Investing in securities of smaller companies may be riskier than investing in larger, more established companies. Smaller companies may have limited financial resources, a less established market for their shares and fewer shares issued. This can cause the share prices of smaller companies to fluctuate more than those of larger companies. The market for the shares of small companies may be less liquid. Investments in smaller companies are generally more volatile in the short term but offer the potential for higher returns over the longer term.

27


Sovereign risk

Sovereign risk is the risk of financial loss due to the government seizure of any assets held in a country. This may be more prevalent in foreign markets that experience great political, social or economic instability. Sovereign risk also arises due to the possibility of less stringent accounting practices and regulatory supervision standards and practices in foreign jurisdictions.

Specialization risk

If an investment fund invests only in specific countries, or in particular types of securities, or in specific markets, the investment fund’s ability to diversify its investments may be limited. This limited diversification may mean the investment fund can’t avoid poor market conditions, causing the value of its investments to fall.

Underlying fund risk

All of the profile funds and some of the other investment funds use a fund-of-fund structure whereby the investment fund invests all of its assets in a secondary or underlying fund. Depending on the size of the investment being made by the investment fund in an underlying fund and the timing of the redemption of this investment, an underlying fund could be forced to sell significant assets prematurely to accommodate a large redemption request. This may negatively impact the unit price of the underlying fund.

28


Fund Facts

This section of the information folder contains individual Fund Facts for each investment fund available to you. You can choose to invest in one or more of these funds.

The individual Fund Facts give you an idea of what each investment fund invests in, how it has performed and what fees or charges may apply.

The description of each investment fund in the individual Fund Facts is not complete without the following description of What if I change my mind? and For more information.

What if I change my mind? You can change your mind and cancel the investment fund contract, the initial pre-authorized monthly premium or any lump-sum premium you apply by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it is mailed.

Your cancellation request has to be in writing, which can include email, fax or letter. The amount returned will be the lesser of the amount you invested or the value of the applicable units you acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid.

For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at:

London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1

Web: www.londonlife.com Email: On our website please go to the “Contact Us” section Telephone: 1-877-566-5433

29


London Life Insurance Company FUND FACTS - London Life Freedom Funds and Marketwatch PolicyAll Information as at December 31, 2015

Conservative Profile (PSG)Quick facts: Date fund available: October 18, 1999

Date fund created: October 18, 1999Managed by: GLC Asset Management Group Ltd.

Total fund value: $2,016,344,118Portfolio turnover rate: 3.30%

Guarantee optionManagement expense ratio

(MER) (%)Net asset value

per unit ($) Units outstanding

All options 2.64 18.79 41,648,697

Minimum investment •Non-registered and RRSP policies: Back-end load units - $300 lump sum or $25 plus pre-authorized payment agreement (PPA) of $25, systematic redemption plan $10,000; No-load units - $100,000

•RRIF policies: Back-end load units - $10,000

What does the fund invest in?This segregated fund, through investments in other funds, investsprimarilyinfixed-incomesecuritiesbutincludesCanadianandforeignequities.Ittargetsanassetmixof75percentfixedincomeand25percentequities.Top 10 investments Asset %

Core Bond (Portico) .................................................................................24.01Core Plus Bond (Portico) .........................................................................24.00Mortgage (Portico) ...................................................................................14.96Corporate Bond (Portico)...........................................................................6.99International Bond (Brandywine) ...............................................................5.06Real Estate (GWLRA) ...............................................................................5.00Canadian Equity (London Capital).............................................................4.45U.S. Value (London Capital) ......................................................................3.49Global Infrastructure Equity (London Capital) ...........................................3.06International Growth (Mackenzie)..............................................................3.01Total .........................................................................................................94.03Total investments: ......................................................................................12

Investment segmentation Asset %

■Bond................................................................ 72.25 ■United States Equity ......................................... 7.28 ■Canadian Equity................................................ 6.53 ■Other ................................................................. 4.79 ■ International Equity ........................................... 4.78 ■Cash.................................................................. 4.37

Are there any guarantees?This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract.

How has the fund performed?This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted.It’s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on yourpersonaltaxsituation.Average returnA person who invested $1,000 in the fund on December 31, 2005 would have $1,376.69 on December 31, 2015. This works out to an average of 3.25 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 10 years. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the 10.

-4-202468

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?Very low Low Low to

moderate Moderate Moderate to high High

The value of your investments can go down. Please see the Fund risks section of the information folder for further details.

Who is this fund for?Apersonwhoisinvestingforthemediumtolongerterm,wantsexposuretomulti-managersinonefundwithatargetofnomorethan25 per cent invested in equities and is comfortable with low risk.

30


Conservative Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:

Sales charge option What you pay How it works

Back-end load units If you redeem units within:1 year of investing, you pay 5.0%2 years of investing, you pay 5.0%3 years of investing, you pay 4.0%4 years of investing, you pay 3.0%5 years of investing, you pay 2.5%6 years of investing, you pay 1.0%After 6 years, you pay 0.0%

•Any early redemption fee you pay goes to London Life.•The early redemption fee is a set rate. It is deducted from the amount you withdraw.•The early redemption fee is based on the date you invested the premium.•Where the policy is a systematic redemption plan or a RRIF you can schedule

payments and receive up to 20% of all premiums without paying an early redemption fee.

•Youcanexchangetounitsofotherfundsunderthecontractatanytimewithoutpaying an early redemption fee.

•When you invest, London Life pays a commission of up to 5%.No-load units There is no fee to invest or redeem

units.•You,yourfinancialsecurityadvisorandLondonLifemustagreetotheno-loadoption.•You can redeem units without paying an early redemption fee.•Youcanexchangetounitsofotherfundsunderthecontractatanytime.

2. Ongoing expenses:TheMERincludesthemanagementfeeandoperatingexpensesofthefund.TheMERincludestheinsurancecostfortheguarantee.Youdonotpaytheseexpensesdirectly.Theyaffectyoubecausetheyreducethereturnyougetonyourinvestment.Fordetailsabouthow the guarantees work, see your insurance contract.

Guarantee option MER (Annual rate as a % of the fund’s value)All options ................................................................................................................................................................... 2.64

Trailing commissionLondon Life pays a trailing commission for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. The rate depends on the sales charge option you choose:•Back-end load units - up to 0.50 per cent of the value of your investment each year•No-load units - up to one per cent of the value of your investment each year3. Other fees:You may have to pay other fees when you redeem or switch units of the fund.

Fee What you payShort-term trading fee Up to 2% of the value of units you redeem or switch within 90 days of investing in the fund.

What if I change my mind?You can change your mind about investing in this fund but you may have as little as two days to do so. Please see page 29 for details. The page also contains details on how to get more information. This Fund Facts is not complete without page 29.

© 2016 All Rights Reserved.

Source: Lipper, a Thomson Reuters company31


Moderate Profile (PSG)Quick facts: Date fund available: October 18, 1999






All options 2.87 19.39 32,109,665




Core Bond (Portico) .................................................................................19.01Core Plus Bond (Portico) .........................................................................18.99Mortgage (Portico) ...................................................................................12.44Canadian Equity (London Capital).............................................................5.86Corporate Bond (Portico)...........................................................................5.48Global Infrastructure Equity (London Capital) ...........................................5.07U.S. Value (London Capital) ......................................................................5.07Real Estate (GWLRA) ...............................................................................4.98Canadian All Cap Value (Mackenzie) ........................................................4.89Foreign Equity (Mackenzie) .......................................................................4.08Total .........................................................................................................85.87Total investments: ......................................................................................14


■Bond................................................................ 57.95 ■Canadian Equity.............................................. 13.63 ■United States Equity ........................................11.02 ■ International Equity ........................................... 7.10 ■Cash.................................................................. 5.15 ■Other ................................................................. 5.15



-10

-5

0

5

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonwhoisinvestingforthemediumtolongerterm,wantsexposuretomulti-managersinonefundwithatargetofnomorethan40percentinvestedinequitiesandiscomfortablewithlowtomoderaterisk.

32


Moderate Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:


Back-end load units If you redeem units within:1 year of investing, you pay 5.0%2 years of investing, you pay 5.0%3yearsofinvesting,youpay4.0%4yearsofinvesting,youpay3.0%5 years of investing, you pay 2.5%6 years of investing, you pay 1.0%After 6 years, you pay 0.0%














Balanced Profile (PSG)Quick facts: Date fund available: October 18, 1999






All options 3.02 19.14 35,404,009



What does the fund invest in?This segregated fund, through investments in other funds, invests primarily in Canadian and foreign equities but includes fixed-incomesecurities.Ittargetsanassetmixof40percentfixedincomeand60percentequities.Top 10 investments Asset %

Core Bond (Portico) .................................................................................13.93Core Plus Bond (Portico) ......................................................................... 11.92U.S. Value (London Capital) ......................................................................9.24Mortgage (Portico) .....................................................................................7.94International Equity (Setanta) ....................................................................6.70Canadian Equity (CI/Synergy) ...................................................................5.71Canadian Equity (London Capital).............................................................5.70Canadian All Cap Value (Mackenzie) ........................................................5.68Real Estate (GWLRA) ...............................................................................5.00Global Equity (Putnam) .............................................................................4.62Total .........................................................................................................76.44Total investments: ......................................................................................17


■Bond................................................................ 38.82 ■Canadian Equity.............................................. 22.38 ■United States Equity ....................................... 15.74 ■ International Equity ......................................... 12.90 ■Other ................................................................. 5.13 ■Cash.................................................................. 5.04


How has the fund performed?This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted.It’s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on yourpersonaltaxsituation.Average returnA person who invested $1,000 in the fund on December 31, 2005 would have $1,399.85 on December 31, 2015. This works out to an average of 3.42 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 10 years. In the past 10 years, the fund was up in value 7 years and down in value 3 years of the 10.

-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?

Very low Low Low to moderate Moderate Moderate

to high High


Who is this fund for?Apersonwhoisinvestingforthemediumtolongerterm,wantsexposuretomulti-managersinonefundwithatargetofnomorethan40percentinvestedinfixedincomeandiscomfortablewithlowtomoderaterisk.

34


Balanced Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















Advanced Profile (PSG)Quick facts: Date fund available: October 18, 1999


Total fund value: $791,484,659Portfolio turnover rate: 4.75%




All options 3.13 18.84 15,256,091



What does the fund invest in?This segregated fund, through investments in other funds, invests primarily in Canadian and foreign equities but includes fixed-incomesecurities.Ittargetsanassetmixof20percentfixedincomeand80percentequities.Top 10 investments Asset %

U.S. Value (London Capital) ......................................................................9.21Core Bond (Portico) ...................................................................................9.01Canadian Equity (London Capital).............................................................8.70Core Plus Bond (Portico) ...........................................................................8.00Global Equity (Putnam) .............................................................................7.14American Growth (AGF) ............................................................................6.27Foreign Equity (Mackenzie) .......................................................................6.18Canadian Equity (CI/Synergy) ...................................................................5.87Canadian Resource (Mackenzie) ..............................................................5.58International Equity (Setanta) ....................................................................5.52Total .........................................................................................................71.48Total investments: ......................................................................................17


■Canadian Equity.............................................. 29.14 ■United States Equity ....................................... 22.43 ■Bond................................................................ 19.64 ■ International Equity ......................................... 17.52 ■Other ................................................................. 5.85 ■Cash.................................................................. 5.42



-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonwhoisinvestingforthemediumtolongerterm,wantsexposuretomulti-managersinonefundwithatargetofnomorethan20percentinvestedinfixedincomeandiscomfortablewithlowtomoderaterisk.

36


Advanced Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















Aggressive Profile (PSG)Quick facts: Date fund available: October 18, 1999






All options 3.18 20.52 14,660,378



What does the fund invest in?This segregated fund, through investments in other funds, invests primarily in Canadian and foreign equities. It targets an asset mix of 100 per cent equities.Top 10 investments Asset %

Canadian Equity (London Capital)...........................................................12.48U.S. Value (London Capital) .................................................................... 11.43American Growth (AGF) ............................................................................8.63Global Equity (Putnam) .............................................................................8.28Foreign Equity (Mackenzie) .......................................................................7.39Mid Cap Canada (GWLIM) ........................................................................7.29International Growth (Mackenzie)..............................................................7.27Canadian Resource (Mackenzie) ..............................................................6.83Canadian Equity (CI/Synergy) ...................................................................6.68Real Estate (GWLRA) ...............................................................................5.08Total .........................................................................................................81.36Total investments: ......................................................................................14


■Canadian Equity.............................................. 37.23 ■United States Equity ....................................... 27.89 ■ International Equity ......................................... 22.49 ■Other ................................................................. 6.24 ■Cash.................................................................. 5.21 ■Bond.................................................................. 0.95


How has the fund performed?This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted.It’s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation.Average returnA person who invested $1,000 in the fund on December 31, 2005 would have $1,397.35 on December 31, 2015. This works out to an average of 3.40 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 10 years. In the past 10 years, the fund was up in value 8 years and down in value 2 years of the 10.

-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?A person who is investing for the medium to longer term, wants exposure to multi-managers in one fund with a target of 100 per cent invested in equities and is comfortable with moderate risk.

38


Aggressive Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:





•You can exchange to units of other funds under the contract at any time without paying an early redemption fee.


units.•You,yourfinancialsecurityadvisorandLondonLifemustagreetotheno-loadoption.•You can redeem units without paying an early redemption fee.•You can exchange to units of other funds under the contract at any time.

2. Ongoing expenses:The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract.








Income Profile (PSG)Quick facts: Date fund available: December 4, 2006

Date fund created: December 4, 2006Managed by: GLC Asset Management Group Ltd.





All options 2.79 12.99 1,366,576




Core Bond (Portico) .................................................................................23.57Core Plus Bond (Portico) .........................................................................21.66Mortgage (Portico) .....................................................................................9.51Real Estate (GWLRA) ...............................................................................8.02Global Infrastructure Equity (London Capital) ...........................................5.98Dividend (GWLIM) .....................................................................................5.67Corporate Bond (Portico)...........................................................................5.01International Bond (Brandywine) ...............................................................5.01Foreign Equity (Mackenzie) .......................................................................4.36Canadian All Cap Value (Mackenzie) ........................................................3.98Total .........................................................................................................92.77Total investments: ......................................................................................13


■Bond................................................................ 61.90 ■United States Equity ......................................... 9.55 ■Canadian Equity................................................ 8.47 ■Other ................................................................. 7.35 ■Cash.................................................................. 6.43 ■ International Equity ........................................... 6.31



-6-4-202468

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





40


Income Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















2010 Profile (PSG)Quick facts: Date fund available: December 4, 2006






All options 2.83 12.75 89,915



What does the fund invest in?This segregated fund, through investments in other funds, investsprimarilyinfixed-incomesecuritiesandCanadianandforeign equities. This fund has reached its target date in 2010. We may close the fund at any time and transfer the assets to the IncomeProfileFund.Top 10 investments Asset %






-10

-5

0

5

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





42


2010 Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:






















All options 2.87 12.47 218,282



What does the fund invest in?This segregated fund, through investments in other funds, investsprimarilyinfixed-incomesecuritiesandCanadianandforeign equities. The fund automatically evolves to a more conservativeassetmixovertimetomatchthepolicyowner’sinvestment horizon.Top 10 investments Asset %





How has the fund performed?This section tells you how the fund has performed over the past 9 years for a policyowner. Returns are after the MER has been deducted.It’simportanttonotethatthisdoesnottellyouhowthefundwillperform in the future. Also, your actual return will depend on yourpersonaltaxsituation.Average returnA person who invested $1,000 in the fund on December 4, 2006 would have $1,246.76 on December 31, 2015. This works out to an average of 2.46 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 9 years. In the past 9 years, the fund was up in value 8 years and down in value 1 year of the 9.

-15-10-505

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonplanningforretirementaround2015andwantexposuretomulti-managersinonefundthatevolvestoamoreconservativeassetmixovertimeandarecomfortablewithlowrisk.

44











Guarantee option MER(Annualrateasa%ofthefund’svalue)All options ................................................................................................................................................................... 2.87













All options 2.99 12.52 302,345




Core Bond (Portico) .................................................................................20.15Core Plus Bond (Portico) .........................................................................18.13Mortgage (Portico) .....................................................................................7.79Real Estate (GWLRA) ...............................................................................7.60U.S. Value (London Capital) ......................................................................5.88Global Infrastructure Equity (London Capital) ...........................................4.47Corporate Bond (Portico)...........................................................................4.40Canadian Equity (London Capital).............................................................4.21Foreign Equity (Mackenzie) .......................................................................4.05Canadian All Cap Value (Mackenzie) ........................................................4.03Total .........................................................................................................80.71Total investments: ......................................................................................18


■Bond................................................................ 52.39 ■Canadian Equity.............................................. 13.29 ■United States Equity ....................................... 12.90 ■ International Equity ........................................... 8.15 ■Other ................................................................. 7.18 ■Cash.................................................................. 6.09


How has the fund performed?This section tells you how the fund has performed over the past 9 years for a policyowner. Returns are after the MER has been deducted.It’simportanttonotethatthisdoesnottellyouhowthefundwillperform in the future. Also, your actual return will depend on yourpersonaltaxsituation.Average returnA person who invested $1,000 in the fund on December 4, 2006 would have $1,252.21 on December 31, 2015. This works out to an average of 2.51 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 9 years. In the past 9 years, the fund was up in value 8 years and down in value 1 year of the 9.

-15-10-505

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonplanningforretirementaround2020andwantexposuretomulti-managersinonefundthatevolvestoamoreconservativeassetmixovertimeandarecomfortablewithlowtomoderaterisk.

46








All options 3.07 12.72 310,214




Core Bond (Portico) .................................................................................16.20Core Plus Bond (Portico) .........................................................................14.39U.S. Value (London Capital) ......................................................................8.10Real Estate (GWLRA) ...............................................................................7.19Mortgage (Portico) .....................................................................................6.08Canadian Equity (London Capital).............................................................6.05International Equity (Setanta) ....................................................................5.28Canadian All Cap Value (Mackenzie) ........................................................4.68Foreign Equity (Mackenzie) .......................................................................4.02Canadian Equity (CI/Synergy) ...................................................................3.89Total .........................................................................................................75.88Total investments: ......................................................................................20




How has the fund performed?This section tells you how the fund has performed over the past 9 years for a policyowner. Returns are after the MER has been deducted.It’simportanttonotethatthisdoesnottellyouhowthefundwillperform in the future. Also, your actual return will depend on yourpersonaltaxsituation.Average returnA person who invested $1,000 in the fund on December 4, 2006 would have $1,271.54 on December 31, 2015. This works out to an average of 2.68 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 9 years. In the past 9 years, the fund was up in value 7 years and down in value 2 years of the 9.

-20-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





48








All options 3.10 12.82 168,035




Core Bond (Portico) .................................................................................13.72Core Plus Bond (Portico) ......................................................................... 11.81U.S. Value (London Capital) ......................................................................9.00Canadian Equity (London Capital).............................................................7.53Real Estate (GWLRA) ...............................................................................7.49International Equity (Setanta) ....................................................................6.17Canadian All Cap Value (Mackenzie) ........................................................5.87Global Equity (Putnam) .............................................................................4.94Mortgage (Portico) .....................................................................................4.89Foreign Equity (Mackenzie) .......................................................................4.62Total .........................................................................................................76.04Total investments: ......................................................................................18





-20-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





50








All options 3.10 12.82 113,091




Core Bond (Portico) ................................................................................. 11.43Core Plus Bond (Portico) ...........................................................................9.22U.S. Value (London Capital) ......................................................................9.19Real Estate (GWLRA) ...............................................................................8.30Canadian Equity (London Capital).............................................................8.22Foreign Equity (Mackenzie) .......................................................................5.95Canadian All Cap Value (Mackenzie) ........................................................5.95Global Equity (Putnam) .............................................................................5.84International Equity (Setanta) ....................................................................5.37American Growth (AGF) ............................................................................4.96Total .........................................................................................................74.43Total investments: ......................................................................................18





-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





52








All options 3.08 12.69 60,991




Core Bond (Portico) ...................................................................................9.44U.S. Value (London Capital) ......................................................................9.30Real Estate (GWLRA) ...............................................................................8.80Canadian Equity (London Capital).............................................................8.47Global Equity (Putnam) .............................................................................6.85Core Plus Bond (Portico) ...........................................................................6.82Foreign Equity (Mackenzie) .......................................................................6.59American Growth (AGF) ............................................................................6.00Canadian Equity (CI/Synergy) ...................................................................5.56Canadian All Cap Value (Mackenzie) ........................................................4.94Total .........................................................................................................72.77Total investments: ......................................................................................18


■Canadian Equity.............................................. 26.74 ■United States Equity ....................................... 22.73 ■Bond................................................................ 19.59 ■ International Equity ......................................... 16.43 ■Other ................................................................. 8.61 ■Cash.................................................................. 5.90



-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonplanningforretirementaround2040andwantexposuretomulti-managersinonefundthatevolvestoamoreconservativeassetmixovertimeandarecomfortablewithmoderaterisk.

54








All options 3.09 12.51 16,667




U.S. Value (London Capital) ......................................................................9.66Canadian Equity (London Capital).............................................................9.43Real Estate (GWLRA) ...............................................................................9.12Global Equity (Putnam) .............................................................................7.41American Growth (AGF) ............................................................................6.77Foreign Equity (Mackenzie) .......................................................................6.55Core Bond (Portico) ...................................................................................6.52Canadian Equity (CI/Synergy) ...................................................................6.17Canadian Resource (Mackenzie) ..............................................................5.40Core Plus Bond (Portico) ...........................................................................5.12Total .........................................................................................................72.15Total investments: ......................................................................................17


■Canadian Equity.............................................. 28.54 ■United States Equity ....................................... 24.82 ■ International Equity ......................................... 17.84 ■Bond................................................................ 13.95 ■Other ................................................................. 9.06 ■Cash.................................................................. 5.80



-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





56








All options 3.16 12.36 8,717




Canadian Equity (London Capital)...........................................................10.63U.S. Value (London Capital) ....................................................................10.05Real Estate (GWLRA) ...............................................................................9.15Global Equity (Putnam) .............................................................................7.91American Growth (AGF) ............................................................................7.15Foreign Equity (Mackenzie) .......................................................................6.87Canadian Equity (CI/Synergy) ...................................................................6.37Canadian Resource (Mackenzie) ..............................................................5.90International Growth (Mackenzie)..............................................................5.69Mid Cap Canada (GWLIM) ........................................................................5.41Total .........................................................................................................75.13Total investments: ......................................................................................17


■Canadian Equity.............................................. 30.56 ■United States Equity ....................................... 26.19 ■ International Equity ......................................... 19.06 ■Bond.................................................................. 9.32 ■Other ................................................................. 9.18 ■Cash.................................................................. 5.69



-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015





58


Money Market (Portico)

Quick facts: Date fund available: November 1, 1988Date fund created: November 1, 1988Managed by: GLC Asset Management Group Ltd.

Total fund value: $836,478,280Portfolio turnover rate: -


(MER) (%)

Net asset value per unit ($) Units outstanding

All options 0.81 24.85 4,786,468



What does the fund invest in?This segregated fund invests primarily in Canadian money market instruments such as high-quality commercial paper and short-term government debt securities.Top 10 investments Asset %

Canada 0.000% 28-Jul-2016 .....................................................................9.24Canada 0.000% 24-Mar-2016 ...................................................................4.67Canada 0.000% 17-Nov-2016 ...................................................................3.74Bank of Montreal 0.000% 09-Aug-2016 ....................................................3.63Canada 0.000% 30-Jun-2016....................................................................3.08Canada 0.000% 20-Oct-2016 ....................................................................3.06Canada 0.000% 05-May-2016...................................................................2.98Canadian Imperial Bank of Commerce 1.650% 13-Jul-2016 ....................2.98OMERS Finance 0.000% 05-Jan-2016 .....................................................2.65Bank of Montreal 0.000% 21-Jun-2016 .....................................................2.59Total .........................................................................................................38.62Total investments: ......................................................................................65


■Cash................................................................ 73.29 ■Bond................................................................ 26.71



0

1

2

3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person seeking short-term safety and planning to hold their investment for a short period of time.NotesLondon Life is currently waiving a portion of the fees for this fund. There is no obligation on London Life to continue waiving these fees and it may cease to do so at any time without notice. During 2015 London Life waived fees equal to 0.54 per cent.

60


Money Market (Portico)

How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:











Fee What you pay

Short-term trading fee Up to 2% of the value of units you redeem or switch within 90 days of investing in the fund.





Fixed Income Profile (PSG)Quick facts: Date fund available: November 5, 2001

Date fund created: November 5, 2001Managed by: GLC Asset Management Group Ltd.





All options 2.44 15.60 3,369,390



What does the fund invest in?This segregated fund, through investments in other funds, investsprimarilyinCanadianfixed-incomesecuritiesIttargetsanassetmixof100percentfixedincome.Top 10 investments Asset %

Core Bond (Portico) .................................................................................20.01Core Plus Bond (Portico) .........................................................................20.00Mortgage (Portico) ...................................................................................14.99Government Bond (Portico) ..................................................................... 11.00International Bond (Brandywine) .............................................................10.00Long Term Bond (Portico) ........................................................................10.00North American High Yield Bond (Putnam) ...............................................8.00Real Return Bond (Portico) .......................................................................3.00Short Term Bond (Portico) .........................................................................3.00Total .......................................................................................................100.00Total investments: ........................................................................................9


■Bond................................................................ 85.53 ■Other ............................................................... 10.47 ■Cash.................................................................. 3.81 ■United States Equity ......................................... 0.17 ■ International Equity ........................................... 0.02



-4-202468

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonwhoisinvestingforthemediumtolongerterm,wantsexposuretomulti-managersinonefundwithatargetof100percentinvestedinfixedincomeandiscomfortablewithlowrisk.

62


Fixed Income Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















Core Bond (Portico)

Quick facts: Date fund available: December 31, 1961Date fund created: December 31, 1961Managed by: GLC Asset Management Group Ltd.



(MER) (%)


All options 2.02 361.08 470,471



What does the fund invest in?ThissegregatedfundinvestsprimarilyinCanadianfixedincomesecurities issued by governments and corporations.Top 10 investments Asset %

Canada 4.000% 01-Jun-2041....................................................................4.09Canada 3.750% 01-Jun-2019....................................................................2.70Canada 2.750% 01-Jun-2022....................................................................2.39Canada 4.000% 01-Jun-2017....................................................................2.25Canada 1.250% 01-Sep-2018 ...................................................................2.03Canada 3.250% 01-Jun-2021....................................................................2.01Canada 3.500% 01-Jun-2020....................................................................2.00Ontario Province 4.700% 02-Jun-2037 .....................................................1.85Ontario Province 3.500% 02-Jun-2024 .....................................................1.84Quebec Province 3.500% 01-Dec-2022 ....................................................1.72Total .........................................................................................................22.88Total investments: ....................................................................................154


■Bond................................................................ 97.07 ■Cash.................................................................. 2.93



-4-202468

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk. Since the fund invests in bonds its value is affected by changes in interest rates.

64


Core Bond (Portico)












Fee What you pay






Core Plus Bond (Portico)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: GLC Asset Management Group Ltd.



(MER) (%)


All options 2.26 17.04 4,549,116



What does the fund invest in?ThissegregatedfundinvestsprimarilyinCanadianfixedincomesecuritiescurrentlythroughtheQuadrusFixedIncomeFund(Portico). Top 10 investments (of the underlying fund) Asset %

Ontario Province 2.600% 02-Jun-2025 .....................................................4.51Can House No1 1.700% 15-Dec-2017 ......................................................4.36Can House No1 2.550% 15-Mar-2025 ......................................................4.24Can House No1 2.650% 15-Mar-2022 ......................................................3.99Ontario Province 4.650% 02-Jun-2041 .....................................................3.99Quebec Province 4.250% 01-Dec-2043 ....................................................3.86Can House No1 1.250% 15-Dec-2020 ......................................................3.03Can House No1 2.900% 15-Jun-2024.......................................................2.09Quebec Province 2.750% 01-Sep-2025 ....................................................2.08Can House No1 2.750% 15-Jun-2016.......................................................1.99Total .........................................................................................................34.14Total investments: ......................................................................................79


■Bond................................................................ 94.90 ■Cash.................................................................. 4.46 ■Other ................................................................. 0.63



-4-202468

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



66


Core Plus Bond (Portico)












Fee What you pay






Mortgage (Portico)




(MER) (%)


All options 2.47 225.03 658,647



What does the fund invest in?This segregated fund invests primarily in mortgages on Canadian residential and commercial properties.Top 10 investments Asset %

Canadian Mortgage Pools .......................................................................82.10Canada 2.500% 01-Jun-2024....................................................................2.25Canada 2.250% 01-Jun-2025....................................................................2.15Canada 1.500% 01-Jun-2023....................................................................1.70Can House No1 3.350% 15-Dec-2020 ......................................................1.38Can House No1 3.800% 15-Jun-2021.......................................................1.29Can House No1 2.650% 15-Mar-2022 ......................................................1.22CAD Cash..................................................................................................1.04CA Mtgage Housin 4.350% 01-Feb-2017 ..................................................0.98Can House No1 2.400% 15-Dec-2022 ......................................................0.90Total .........................................................................................................95.01Total investments: ......................................................................................23


■Bond................................................................ 98.93 ■Cash.................................................................. 1.07


How has the fund performed?This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted.It’s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation.Average returnA person who invested $1,000 in the fund on December 31, 2005 would have $1,226.63 on December 31, 2015. This works out to an average of 2.06 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 10 years. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the 10.

-2

0

2

4

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk. Since the fund invests in mortgages its value is affected by changes in interest rates.

68


Mortgage (Portico)












Fee What you pay






Government Bond (Portico)




(MER) (%)


All options 2.03 15.67 1,562,334



What does the fund invest in?Thissegregatedfundinvestsprimarilyinfixedincomesecuritiesissued by Canadian governments.Top 10 investments Asset %

Can House No1 1.700% 15-Dec-2017 ......................................................8.65Can House No1 2.050% 15-Jun-2018.......................................................7.78Can House No1 4.100% 15-Dec-2018 ......................................................7.71Can House No1 1.850% 15-Dec-2016 ......................................................5.83Can House No1 1.950% 15-Jun-2019.......................................................5.75Can House No1 2.000% 15-Dec-2019 ......................................................4.39Can House No1 1.250% 15-Dec-2020 ......................................................3.99Ontario Province 3.150% 02-Jun-2022 .....................................................3.91Ontario Province 2.100% 08-Sep-2018 .....................................................3.88Ontario Province 4.300% 08-Mar-2017 .....................................................3.70Total .........................................................................................................55.59Total investments: ......................................................................................37


■Bond................................................................ 98.77 ■Cash.................................................................. 1.23



-202468

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



70


Government Bond (Portico)












Fee What you pay






Income (Portico)




(MER) (%)


All options 2.25 22.84 16,337,889



What does the fund invest in?ThissegregatedfundinvestsprimarilyinCanadianfixedincomesecuritieswithsomeexposuretoCanadianandforeignstocks.Top 10 investments Asset %

Royal Bank of Canada...............................................................................2.69Toronto-Dominion Bank .............................................................................2.67Bce Inc.......................................................................................................2.55Bank of Nova Scotia ..................................................................................1.93Magna International Inc .............................................................................1.78Bank of Montreal .......................................................................................1.70Canada 3.750% 01-Jun-2019....................................................................1.69Canadian Imperial Bank of Commerce......................................................1.65CAD Cash..................................................................................................1.32Bell Canada 4.950% 19-May-2021............................................................1.30Total .........................................................................................................19.28Total investments: ....................................................................................186


■Bond................................................................ 69.60 ■Canadian Equity.............................................. 26.87 ■Cash.................................................................. 2.63 ■United States Equity ......................................... 0.61 ■Other ................................................................. 0.29



-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the medium to longer term and seeking potential for interest income and modest growth from Canadian and foreign stocks and is comfortable with low risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time.

72


Income (Portico)












Fee What you pay






Income (Mackenzie)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Mackenzie Investments



(MER) (%)


All options 2.31 23.15 4,042,030



What does the fund invest in?ThissegregatedfundinvestsprimarilyinCanadianfixedincomesecuritiesandstockswithexposuretoforeignstocks.Top 10 investments Asset %

Ontario Province 3.450% 02-Jun-2045 .....................................................5.27CAD Cash..................................................................................................2.73Canada 3.500% 01-Dec-2045 ...................................................................2.15Quebec Province 3.500% 01-Dec-2045 ....................................................1.95Ontario Province 2.600% 02-Jun-2025 .....................................................1.89US Treasury 2.250% 15-Nov-2025............................................................1.51Quebec Province 2.750% 01-Sep-2025 ....................................................1.29Muskrat Fal 3.860% 01-Dec-2048 .............................................................1.26British Columbia 2.850% 18-Jun-2025 ......................................................1.20Bank of Nova Scotia 2.580% 30-Mar-2027 ...............................................1.02Total .........................................................................................................20.27Total investments: ....................................................................................409


■Bond................................................................ 69.87 ■Canadian Equity.............................................. 13.12 ■United States Equity ......................................... 7.27 ■ International Equity ........................................... 6.23 ■Cash.................................................................. 3.51



-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?ApersonwhoisinvestingforthemediumtolongertermandseekingexposuretobondsandCanadianandforeignstocksandiscomfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time.

74


Income (Mackenzie)












Fee What you pay






Diversified (London Capital)Quick facts: Date fund available: January 29, 1988

Date fund created: January 29, 1988Managed by: GLC Asset Management Group Ltd.





All options 2.79 299.02 2,150,741



What does the fund invest in?ThissegregatedfundinvestsinCanadianfixed-incomesecurities and Canadian and foreign equities through various segregated funds of London Life. Top 10 investments Asset %

Core Bond (Portico) .................................................................................32.30Canadian Equity (London Capital)...........................................................29.32U.S. Equity (London Capital) ...................................................................15.19International Equity (JPMorgan) ..............................................................14.15Mortgage (Portico) .....................................................................................6.03Money Market (Portico) .............................................................................3.01Total .......................................................................................................100.00Total investments: ........................................................................................6


■Bond................................................................ 49.31 ■Canadian Equity.............................................. 27.14 ■Cash................................................................ 14.09 ■United States Equity ......................................... 5.37 ■ International Equity ........................................... 3.29 ■Other ................................................................. 0.80



-20-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?Apersonwhoisinvestingforthemediumtolongerterm,wantsexposuretofixedincomeandequitiesinasinglefundandiscomfortable with low to moderate risk.

76


Diversified (London Capital)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:

Sales charge option What you pay How it worksBack-end load units If you redeem units within:

1 year of investing, you pay 5.0%2 years of investing, you pay 5.0%3 years of investing, you pay 4.0%4 years of investing, you pay 3.0%5 years of investing, you pay 2.5%6 years of investing, you pay 1.0%After 6 years, you pay 0.0%














Balanced Growth (GWLIM)




(MER) (%)


All options 2.74 16.97 1,652,195




Toronto-Dominion Bank .............................................................................3.41Royal Bank of Canada...............................................................................3.23Bank of Nova Scotia ..................................................................................2.14Canadian National Railway Co ..................................................................1.80BrookfieldAssetManagementInc .............................................................1.60Manulife Financial Corp .............................................................................1.44Suncor Energy Inc .....................................................................................1.40Keyera Corp ..............................................................................................1.37Alimentation Couche-Tard Inc ...................................................................1.37Canadian Imperial Bank of Commerce......................................................1.35Total ......................................................................................................... 19.11Total investments: ....................................................................................263


■Canadian Equity.............................................. 44.34 ■Bond................................................................ 28.64 ■United States Equity ....................................... 23.70 ■Cash.................................................................. 1.22 ■ International Equity ........................................... 1.21 ■Other ................................................................. 0.89



-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



78


Balanced Growth (GWLIM)












Fee What you pay






North American Balanced (London Capital)




(MER) (%)


All options 2.74 16.96 1,375,517




USD Cash..................................................................................................3.28Royal Bank of Canada...............................................................................2.92Toronto-Dominion Bank .............................................................................2.87BrookfieldAssetManagementInc .............................................................1.55Manulife Financial Corp .............................................................................1.54Canada 3.750% 01-Jun-2019....................................................................1.26Alimentation Couche-Tard Inc ...................................................................1.25Canada 3.250% 01-Jun-2021....................................................................1.19TransCanada Corp ....................................................................................1.14CanadianPacificRailwayLtd ....................................................................1.10Total .........................................................................................................18.10Total investments: ....................................................................................257


■Bond................................................................ 35.68 ■Canadian Equity.............................................. 33.51 ■United States Equity ....................................... 24.12 ■Cash.................................................................. 4.25 ■ International Equity ........................................... 1.43 ■Other ................................................................. 1.01



-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



80


North American Balanced (London Capital)












Fee What you pay






Equity/Bond (GWLIM)




(MER) (%)


All options 2.73 18.89 1,283,664




LL International Equity (JPMorgan) BEL .................................................12.13Toronto-Dominion Bank .............................................................................2.90Royal Bank of Canada...............................................................................2.78Bank of Nova Scotia ..................................................................................1.87Canadian National Railway Co ..................................................................1.57Can House No1 2.650% 15-Mar-2022 ......................................................1.48Can House No1 2.900% 15-Jun-2024.......................................................1.45USD Cash..................................................................................................1.44BrookfieldAssetManagementInc .............................................................1.37Can House No1 1.700% 15-Dec-2017 ......................................................1.30Total .........................................................................................................28.29Total investments: ....................................................................................181


■Canadian Equity.............................................. 37.93 ■Bond................................................................ 27.78 ■United States Equity ....................................... 16.94 ■ International Equity ......................................... 12.74 ■Cash.................................................................. 3.82 ■Other ................................................................. 0.79



-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



82


Equity/Bond (GWLIM)












Fee What you pay






Canadian Balanced (Mackenzie)




(MER) (%)


All options 2.93 21.03 3,206,085



What does the fund invest in?ThissegregatedfundinvestsprimarilyinCanadianfixedincomesecurities and stocks currently through the Mackenzie Canadian Large Cap Balanced Fund.Top 10 investments (of the underlying fund) Asset %

Ontario Province 3.450% 02-Jun-2045 ..................................................... 5.11CAD Cash..................................................................................................2.14Temp Holdings Co Ltd ...............................................................................1.88Bank of Nova Scotia ..................................................................................1.80Royal Bank of Canada...............................................................................1.58Quebec Province 3.500% 01-Dec-2045 ....................................................1.53Manulife Financial Corp .............................................................................1.50Can House No1 2.900% 15-Jun-2024.......................................................1.46Alimentation Couche-Tard Inc ...................................................................1.41Toronto-Dominion Bank .............................................................................1.39Total .........................................................................................................19.80Total investments: ....................................................................................347


■Bond................................................................ 50.45 ■Canadian Equity.............................................. 23.70 ■United States Equity ....................................... 12.56 ■ International Equity ..........................................11.23 ■Cash.................................................................. 1.93 ■Other ................................................................. 0.14



-20-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?Apersonwhoisinvestingforthemediumtolongertermandseekingexposuretostocksandbondsandiscomfortablewithlowtomoderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time.

84


Canadian Balanced (Mackenzie)












Fee What you pay






Growth & Income (Mackenzie)




(MER) (%)


All options 2.69 19.78 2,394,600




BrookfieldAssetManagementInc .............................................................3.67Loblaw Companies Ltd ..............................................................................3.46Saputo Inc .................................................................................................3.13Suncor Energy Inc .....................................................................................3.03Canadian Natural Resources Ltd ..............................................................2.78Toronto-Dominion Bank .............................................................................2.78Omnicom Group Inc ..................................................................................2.64Bank of Nova Scotia ..................................................................................2.58Canadian Western Bank ............................................................................2.51Danone SA ................................................................................................2.39Total .........................................................................................................28.97Total investments: ....................................................................................287


■Canadian Equity.............................................. 50.10 ■Bond................................................................ 25.62 ■United States Equity ....................................... 15.83 ■ International Equity ........................................... 6.25 ■Cash.................................................................. 2.20



-15-10-505

1015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



86


Growth & Income (Mackenzie)












Fee What you pay






Balanced (Beutel Goodman)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Beutel, Goodman & Company Ltd.



(MER) (%)


All options 2.92 22.27 6,377,801




Toronto-Dominion Bank .............................................................................4.05Royal Bank of Canada...............................................................................4.03Rogers Communications Inc .....................................................................3.25Bank of Nova Scotia ..................................................................................2.55Beutel Goodman Cash Management Fund ...............................................2.08Cenovus Energy Inc ..................................................................................2.03Magna International Inc .............................................................................1.92Can House No1 1.700% 15-Dec-2017 ......................................................1.88JPMorgan Chase & Co ..............................................................................1.87Ontario Province 2.600% 02-Jun-2025 .....................................................1.82Total .........................................................................................................25.48Total investments: ....................................................................................250


■Canadian Equity.............................................. 38.46 ■Bond................................................................ 30.92 ■United States Equity ....................................... 26.40 ■Other ................................................................. 2.08 ■ International Equity ........................................... 1.95 ■Cash.................................................................. 0.19



-15-10-505

101520

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High



88


Balanced (Beutel Goodman)












Fee What you pay






Global Income (Sentry)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Sentry Investments



(MER) (%)


All options 2.91 20.51 2,238,709



What does the fund invest in?Thissegregatedfundinvestsprimarilyinfixedincomesecuritiesand stocks anywhere in the world.Top 10 investments Asset %

CAD Cash..................................................................................................3.66Royal Bank of Canada...............................................................................2.24Toronto-Dominion Bank .............................................................................1.96Canadian National Railway Co ..................................................................1.93Canada 5.000% 01-Jun-2037....................................................................1.90Ontario Province 2.850% 02-Jun-2023 .....................................................1.80Bank of Nova Scotia ..................................................................................1.73Can House No1 2.350% 15-Dec-2018 ......................................................1.67Ontario Province 5.600% 02-Jun-2035 .....................................................1.51Manulife Financial Corp .............................................................................1.42Total .........................................................................................................19.82Total investments: ....................................................................................255


■Bond................................................................ 35.98 ■Canadian Equity.............................................. 29.05 ■United States Equity ....................................... 23.37 ■ International Equity ........................................... 7.58 ■Cash.................................................................. 4.03



-10-505

101520

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?ApersonwhoisinvestingforthemediumtolongertermandseekingexposuretoCanadianandforeignbondsandstocksandiscomfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. NotesEffective November 2016 Sentry Investments Inc. assumed portfolio management responsibilities for the Growth & Income Fund (AGF). The name of the fund changed to Global Income Fund (Sentry) from Growth & Income Fund (AGF). The investment objective ofthesegregatedfundchangedfrominvestingprimarilyinCanadianfixedincomesecuritiesandstockstoinvestingprimarilyinfixedincome securities and stocks anywhere in the world. The performance before that date was achieved under the previous manager and investment objective.

90


Global Income (Sentry)












Fee What you pay






Global Monthly Income (London Capital)




(MER) (%)


All options 2.91 16.81 1,401,572



What does the fund invest in?Thissegregatedfundinvestsprimarilyinfixedincomesecuritiesand stocks from around the world currently through the Quadrus Global Monthly Income Fund. Top 10 investments (of the underlying fund) Asset %

BrookfieldAssetManagementInc .............................................................5.85Toronto-Dominion Bank .............................................................................4.93Berkshire Hathaway Inc.............................................................................4.33Bank of Nova Scotia ..................................................................................4.10Power Corporation of Canada ...................................................................3.67Cash and Cash Equivalents ......................................................................3.06Canadian Natural Resources Ltd ..............................................................2.60Royal Bank of Canada...............................................................................2.54Richelieu Hardware Ltd .............................................................................2.39Wells Fargo & Co ......................................................................................2.30Total .........................................................................................................35.77Total investments: ....................................................................................120


■Canadian Equity.............................................. 42.40 ■Bond................................................................ 24.14 ■United States Equity ....................................... 23.36 ■ International Equity ........................................... 4.14 ■Cash.................................................................. 3.72 ■Other ................................................................. 2.25



-20-10

0102030

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?ApersonwhoisinvestingforthemediumtolongertermandseekingexposuretoCanadianandforeignbondsandCanadianandforeign income-oriented stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. NotesEffective November 2016 GLC Asset Management Group Ltd. assumed portfolio management responsibilities for the Balanced Fund (Invesco). The name of the fund changed to Global Monthly Income Fund (London Capital) from Balanced Fund (Invesco). TheinvestmentobjectiveofthesegregatedfundchangedfrominvestingprimarilyinCanadianfixedincomesecuritiesandstockstoinvestingprimarilyinfixedincomesecuritiesandstocksanywhereintheworld.Theperformancebeforethatdatewasachievedunderthe previous manager and investment objective.

92


Global Monthly Income (London Capital)












Fee What you pay






Canadian Equity Profile (PSG)Quick facts: Date fund available: November 5, 2001






All options 3.08 19.03 1,035,954



What does the fund invest in?This segregated fund, through investments in other funds, invests primarily in Canadian equities. It targets an asset mix of 100 per cent equities.Top 10 investments Asset %

Canadian Equity (London Capital)...........................................................14.96Canadian All Cap Value (Mackenzie) ......................................................12.00Canadian Equity (Beutel Goodman) ........................................................ 11.96Dividend (GWLIM) .....................................................................................9.99Mid Cap Canada (GWLIM) ........................................................................8.06Canadian Resource (Mackenzie) ..............................................................8.05Equity (Mackenzie) ....................................................................................8.00Canadian Equity (Bissett) ..........................................................................7.00Canadian Equity Growth (CC&L)...............................................................5.99Growth Equity (Laketon) ............................................................................5.99Total .........................................................................................................92.00Total investments: ......................................................................................12


■Canadian Equity.............................................. 77.62 ■United States Equity ....................................... 13.09 ■Cash.................................................................. 3.57 ■Other ................................................................. 3.19 ■ International Equity ........................................... 2.03 ■Bond.................................................................. 0.49



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?A person who is investing for the longer term, wants exposure to multi-managers in one fund with a target of 100 per cent invested in equities and is comfortable with moderate risk.

94


Canadian Equity Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















Equity Profile (PSG)Quick facts: Date fund available: December 4, 2006






All options 3.22 12.34 110,941



What does the fund invest in?This segregated fund, through investments in other funds, invests primarily in Canadian and foreign equities. It targets an asset mix of 100 per cent equities.Top 10 investments Asset %

Canadian All Cap Value (Mackenzie) ......................................................12.50Canadian Equity (Leith Wheeler).............................................................12.49U.S. Value (London Capital) ....................................................................12.00Dividend (GWLIM) ...................................................................................10.99Global Equity (Invesco Trimark) ..............................................................10.50Mid Cap Canada (GWLIM) ........................................................................7.03Canadian Equity (Laketon) ........................................................................6.99International Equity (Setanta) ....................................................................5.99Global Equity (Putnam) .............................................................................5.51American Equity (McLean Budden) ...........................................................5.01Total .........................................................................................................89.01Total investments: ......................................................................................13


■Canadian Equity.............................................. 43.34 ■United States Equity ....................................... 28.67 ■ International Equity ......................................... 21.86 ■Cash.................................................................. 3.48 ■Other ................................................................. 2.52 ■Bond.................................................................. 0.13



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?A person who is investing for the longer term, wants exposure to multi-managers in one fund with a target of 100 per cent invested in equities and is comfortable with moderate risk.

96


Equity Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















Canadian Low Volatility (London Capital)




(MER) (%)


All options 3.02 17.61 576,984



What does the fund invest in?This segregated fund invests primarily in Canadian stocks with a focus on those companies and/or sectors that are believed to likely have lower sensitivity to broader market movements.Top 10 investments Asset %

CAD Cash..................................................................................................4.89Royal Bank of Canada...............................................................................2.84Toronto-Dominion Bank .............................................................................2.68Bank of Montreal .......................................................................................2.62Bank of Nova Scotia ..................................................................................2.52Manulife Financial Corp .............................................................................2.44Canadian Imperial Bank of Commerce......................................................2.01BrookfieldAssetManagementInc .............................................................1.71Canadian National Railway Co ..................................................................1.64Sun Life Financial Inc ................................................................................1.64Total .........................................................................................................24.99Total investments: ....................................................................................123


■Canadian Equity.............................................. 50.13 ■United States Equity ....................................... 23.58 ■ International Equity ......................................... 20.56 ■Cash.................................................................. 5.18 ■Other ................................................................. 0.55



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks, and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of timeNotesEffective November 2016 GLC Asset Management Group Ltd. assumed portfolio management responsibilities for the Larger Company Fund (Mackenzie). The name of the fund changed to Canadian Low Volatility (London Capital) from Larger Company Fund (Mackenzie). The performance before that date was achieved under the previous manager and investment objective.

98


Canadian Low Volatility (London Capital)












Fee What you pay






Canadian Equity (London Capital)

Quick facts: Date fund available: December 31, 1961Date fund created: December 31, 1961Managed by: GLC Asset Management Group Ltd.



(MER) (%)


All options 2.85 644.71 417,549



What does the fund invest in?This segregated fund invests primarily in Canadian stocks.Top 10 investments Asset %

Royal Bank of Canada...............................................................................8.07Toronto-Dominion Bank .............................................................................7.95Manulife Financial Corp .............................................................................4.29CAD Cash..................................................................................................4.23BrookfieldAssetManagementInc .............................................................4.13TransCanada Corp ....................................................................................3.20Alimentation Couche-Tard Inc ...................................................................3.19CanadianPacificRailwayLtd ....................................................................3.06Canadian National Railway Co ..................................................................2.71Agrium Inc .................................................................................................2.63Total .........................................................................................................43.46Total investments: ......................................................................................47


■Canadian Equity.............................................. 92.26 ■Cash.................................................................. 4.48 ■Other ................................................................. 2.76 ■United States Equity ......................................... 0.50



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

100


Canadian Equity (London Capital)












Fee What you pay






Canadian Equity (GWLIM)




(MER) (%)


All options 2.86 21.68 1,932,441



What does the fund invest in?This segregated fund invests primarily in Canadian stocks with exposure to foreign stocks.Top 10 investments Asset %

CAD Cash..................................................................................................7.60Toronto-Dominion Bank .............................................................................6.64Royal Bank of Canada...............................................................................6.57Bank of Nova Scotia ..................................................................................4.49Canadian National Railway Co ..................................................................3.61BrookfieldAssetManagementInc .............................................................3.22Suncor Energy Inc .....................................................................................2.90Manulife Financial Corp .............................................................................2.85Alimentation Couche-Tard Inc ...................................................................2.84Keyera Corp ..............................................................................................2.79Total .........................................................................................................43.51Total investments: ......................................................................................57


■Canadian Equity.............................................. 78.92 ■United States Equity ........................................11.45 ■Cash.................................................................. 7.84 ■Other ................................................................. 1.79



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks which includes moderate exposure to foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

102


Canadian Equity (GWLIM)












Fee What you pay






SRI Canadian Equity (GWLIM)




(MER) (%)


All options 2.90 23.17 1,377,423



What does the fund invest in?This segregated fund invests primarily in Canadian stocks that conduct their business in a socially responsible manner with exposure to foreign stocks. Top 10 investments Asset %

Toronto-Dominion Bank .............................................................................6.81Royal Bank of Canada...............................................................................6.51CAD Cash..................................................................................................5.42Bank of Nova Scotia ..................................................................................4.55Canadian National Railway Co ..................................................................3.70Suncor Energy Inc .....................................................................................3.19BrookfieldAssetManagementInc .............................................................3.16Manulife Financial Corp .............................................................................2.93Keyera Corp ..............................................................................................2.89Canadian Imperial Bank of Commerce......................................................2.76Total .........................................................................................................41.92Total investments: ......................................................................................56


■Canadian Equity.............................................. 80.20 ■United States Equity ........................................11.91 ■Cash.................................................................. 5.67 ■Other ................................................................. 2.23



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks which includes moderate exposure to foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesEffective November 2016 GLC Asset Management Group Ltd. renamed the segregated fund from Ethics (GWLIM) to SRI Canadian Equity (GWLIM). No other changes were made to the segregated fund.

104


SRI Canadian Equity (GWLIM)












Fee What you pay






Growth Equity (Laketon)




(MER) (%)


All options 2.91 16.76 621,863




Toronto-Dominion Bank .............................................................................7.53Royal Bank of Canada...............................................................................7.34Bank of Nova Scotia ..................................................................................5.64Alimentation Couche-Tard Inc ...................................................................5.35Loblaw Companies Ltd ..............................................................................4.90Manulife Financial Corp .............................................................................4.79CanadianPacificRailwayLtd ....................................................................4.03Element Financial Corp .............................................................................3.91Restaurant Brands International Inc ..........................................................3.69BrookfieldAssetManagementInc .............................................................3.41Total .........................................................................................................50.59Total investments: ......................................................................................39


■Canadian Equity.............................................. 89.99 ■United States Equity ......................................... 6.17 ■ International Equity ........................................... 3.08 ■Cash.................................................................. 0.76



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks which includes moderate exposure to U.S stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

106


Growth Equity (Laketon)












Fee What you pay






Canadian Equity Growth (Mackenzie)




(MER) (%)


All options 3.05 17.83 1,613,622



What does the fund invest in?This segregated fund invests primarily in Canadian stocks currently through the Mackenzie Canadian Large Cap Growth Fund.Top 10 investments (of the underlying fund) Asset %

Bank of Nova Scotia ..................................................................................3.78Royal Bank of Canada...............................................................................3.33Temp Holdings Co Ltd ...............................................................................3.24Manulife Financial Corp .............................................................................3.15Alimentation Couche-Tard Inc ...................................................................2.96Toronto-Dominion Bank .............................................................................2.93Canadian National Railway Co ..................................................................2.61CGI Group Inc ...........................................................................................2.50Sun Life Financial Inc ................................................................................2.28Canadian Imperial Bank of Commerce......................................................2.18Total .........................................................................................................28.96Total investments: ......................................................................................78


■Canadian Equity.............................................. 51.27 ■United States Equity ....................................... 26.67 ■ International Equity ......................................... 21.37 ■Cash.................................................................. 0.68



-40-30-20-10

01020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

108


Canadian Equity Growth (Mackenzie)












Fee What you pay






Canadian Equity Growth (CC&L)

Quick facts: Date fund available: November 5, 2001Date fund created: November 5, 2001Managed by: Connor, Clark & Lunn Investment Management Ltd.



(MER) (%)


All options 3.08 21.50 2,253,735



What does the fund invest in?This segregated fund invests primarily in Canadian stocks with exposure to foreign stocks.Top 10 investments (of the underlying fund) Asset %

Toronto-Dominion Bank .............................................................................7.26Royal Bank of Canada...............................................................................6.82Canadian National Railway Co ..................................................................4.27Manulife Financial Corp .............................................................................3.80Bank of Nova Scotia ..................................................................................3.49BrookfieldAssetManagementInc .............................................................3.00Bank of Montreal .......................................................................................2.73Loblaw Companies Ltd ..............................................................................2.60Suncor Energy Inc .....................................................................................2.19Alimentation Couche-Tard Inc ...................................................................2.04Total .........................................................................................................38.20Total investments: ......................................................................................99


■Canadian Equity.............................................. 94.74 ■Other ................................................................. 2.85 ■United States Equity ......................................... 1.20 ■Cash.................................................................. 0.92 ■ International Equity ........................................... 0.28



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesConnor, Clark & Lunn Investment Management Ltd. assumed portfolio management responsibilities for the Canadian Equity Growth Fund (Invesco) in May 2013. The name of the fund was changed to Canadian Equity Growth Fund (CC&L).

110


Canadian Equity Growth (CC&L)












Fee What you pay






Equity (Mackenzie)




(MER) (%)


All options 3.03 19.50 1,846,457




Alberta Province 0.000% 13-Jan-2016 ......................................................5.28Omnicom Group Inc ..................................................................................4.21BrookfieldAssetManagementInc .............................................................3.99Loblaw Companies Ltd ..............................................................................3.79Suncor Energy Inc .....................................................................................3.75Danone SA ................................................................................................3.42United Parcel Service Inc ..........................................................................3.36Saputo Inc .................................................................................................3.34Canadian Natural Resources Ltd ..............................................................3.17Procter & Gamble Co ................................................................................3.03Total .........................................................................................................37.34Total investments: ......................................................................................42


■Canadian Equity.............................................. 53.86 ■United States Equity ....................................... 26.22 ■Cash................................................................ 10.47 ■ International Equity ........................................... 9.46



-20

-10

0

10

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks which includes moderate exposure to foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

112


Equity (Mackenzie)












Fee What you pay






Canadian Equity (Beutel Goodman)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Beutel, Goodman & Company Ltd.



(MER) (%)


All options 3.04 25.21 1,756,007




Toronto-Dominion Bank .............................................................................7.46Royal Bank of Canada...............................................................................7.41Rogers Communications Inc .....................................................................5.98Bank of Nova Scotia ..................................................................................4.69Cenovus Energy Inc ..................................................................................3.73Magna International Inc .............................................................................3.59Canadian Natural Resources Ltd ..............................................................3.29Canadian Imperial Bank of Commerce......................................................3.18BrookfieldAssetManagementInc .............................................................3.12Canadian National Railway Co ..................................................................2.92Total .........................................................................................................45.37Total investments: ......................................................................................56


■Canadian Equity.............................................. 70.83 ■United States Equity ....................................... 24.57 ■Other ................................................................. 2.15 ■ International Equity ........................................... 1.75 ■Cash.................................................................. 0.70



-30-20-10

0102030

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks which includes moderate exposure to foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

114


Canadian Equity (Beutel Goodman)












Fee What you pay






Dividend (GWLIM)




(MER) (%)


All options 2.75 31.08 25,787,546



What does the fund invest in?This segregated fund invests primarily in dividend yielding Canadian stocks.Top 10 investments Asset %

CAD Cash................................................................................................10.57Toronto-Dominion Bank .............................................................................6.10Royal Bank of Canada...............................................................................5.98Bank of Nova Scotia ..................................................................................5.45Canadian National Railway Co ..................................................................2.97Bank of Montreal .......................................................................................2.84TransCanada Corp ....................................................................................2.79Enbridge Inc ..............................................................................................2.75Manulife Financial Corp .............................................................................2.60Bce Inc.......................................................................................................2.03Total .........................................................................................................44.08Total investments: ......................................................................................77


■Canadian Equity.............................................. 73.14 ■United States Equity ....................................... 13.04 ■Cash................................................................ 10.93 ■Other ................................................................. 2.89



-30-20-10

0102030

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking dividend income along with the growth potential of stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

116


Dividend (GWLIM)












Fee What you pay






Dividend (Mackenzie)




(MER) (%)


All options 2.94 24.39 6,011,449



What does the fund invest in?This segregated fund invests primarily in Canadian stocks currently through the Mackenzie Canadian Large Cap Dividend Fund.Top 10 investments (of the underlying fund) Asset %

Royal Bank of Canada...............................................................................3.80Toronto-Dominion Bank .............................................................................3.77Bank of Montreal .......................................................................................3.61Bank of Nova Scotia ..................................................................................3.44Canadian Imperial Bank of Commerce......................................................2.71Manulife Financial Corp .............................................................................2.40CAD Cash..................................................................................................2.26Canadian National Railway Co ..................................................................2.26Suncor Energy Inc .....................................................................................2.25BrookfieldAssetManagementInc .............................................................2.12Total .........................................................................................................28.62Total investments: ....................................................................................128


■Canadian Equity.............................................. 67.62 ■United States Equity ....................................... 15.72 ■ International Equity ......................................... 13.68 ■Cash.................................................................. 2.26 ■Other ................................................................. 0.72



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking dividend income along with the growth potential of stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

118


Dividend (Mackenzie)












Fee What you pay






Mid Cap Canada (GWLIM)




(MER) (%)


All options 3.02 31.06 2,237,879



What does the fund invest in?This segregated fund invests primarily in Canadian companies that are in the middle capitalization range of the equity market with exposure to foreign stocks.Top 10 investments Asset %

CCL Industries Inc .....................................................................................6.38CAD Cash..................................................................................................4.65Boyd Group Income Fund .........................................................................4.34Winpak Ltd.................................................................................................4.33Stella-Jones Inc .........................................................................................4.21Enghouse Systems Ltd..............................................................................3.45Descartes Systems Group Inc ...................................................................3.42Morneau Shepell Inc..................................................................................2.81Intertape Polymer Group Inc .....................................................................2.65Kinaxis Inc .................................................................................................2.52Total .........................................................................................................38.76Total investments: ......................................................................................62


■Canadian Equity.............................................. 76.56 ■United States Equity ....................................... 13.09 ■Other ................................................................. 5.54 ■Cash.................................................................. 4.80



-60-40-20

0204060

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks of smaller companies which includes moderate exposure to foreign stocks and is comfortable with moderate to high risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

120


Mid Cap Canada (GWLIM)












Fee What you pay






Growth Equity (AGF)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: AGF Investments Inc.



(MER) (%)


All options 3.53 16.46 1,339,395




Real Matters Inc P/P ..................................................................................6.46CAD Cash..................................................................................................5.32Alimentation Couche-Tard Inc ...................................................................4.32AGT Food and Ingredients Inc ..................................................................2.82Parex Resources Inc .................................................................................2.62Linamar Corp .............................................................................................2.43CGI Group Inc ...........................................................................................2.34Bank of Nova Scotia ..................................................................................2.29Element Financial Corp .............................................................................2.27Boyd Group Income Fund .........................................................................2.13Total .........................................................................................................33.00Total investments: ......................................................................................95


■Canadian Equity.............................................. 75.18 ■United States Equity ......................................... 7.85 ■Bond.................................................................. 6.95 ■Cash.................................................................. 5.72 ■Other ................................................................. 4.26 ■ International Equity ........................................... 0.03


How has the fund performed?This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted.It’s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation.Average returnA person who invested $1,000 in the fund on December 31, 2005 would have $994.65 on December 31, 2015. This works out to an average of -0.05 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 10 years. In the past 10 years, the fund was up in value 5 years and down in value 5 years of the 10.

-60-40-20

0204060

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks, which includes moderate exposure to foreign stocks and is comfortable with moderate to high risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

122


Growth Equity (AGF)












Fee What you pay






Real Estate (GWLRA)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: GWL Realty Advisors Inc.



(MER) (%)


All options 3.19 27.76 8,736,938



What does the fund invest in?This segregated fund invests primarily, directly or indirectly, in a portfolio of income producing Canadian real estate properties.Top 10 investments Asset %

33 Yonge Street .........................................................................................5.54First Canadian Centre ...............................................................................4.471188 West Georgia St. ..............................................................................4.33Credit Ridge Commons .............................................................................4.26325 25th Street SE ....................................................................................3.66Vancouver Centre ......................................................................................3.39Gulf Canada Square ..................................................................................3.33269 Laurier Avenue West ..........................................................................3.005150 - 5160 Yonge St ................................................................................2.73Goreway Business Park ............................................................................2.68Total .........................................................................................................37.39Total investments: ......................................................................................83


■Canadian Equity.............................................. 81.50 ■Cash................................................................ 18.00 ■United States Equity ......................................... 0.50



-505

101520

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term and seeking the potential for long-term growth by investing in a portfolio of Canadian real estate properties and are comfortable with low to moderate risk due to the ups and downs of the real estate market. Redemptions maybesuspendedduringanyperiodthatthesegregatedfunddoesnothavesufficientcashorreadilymarketablesecuritiestomeetrequests for redemptions. This fund should be considered as a long-term investment and is not suitable for a person who may need to quickly convert their holdings to cash.NotesOverthepastfiveyears,thefundhasbought$306millionworthofrealpropertyandhassold$237millionworth.

124


Real Estate (GWLRA)












Fee What you pay






Canadian Resource (Mackenzie)




(MER) (%)


All options 3.54 27.33 3,645,988



What does the fund invest in?This segregated fund invests primarily in Canadian companies engaged in the energy and natural resource industries currently through the Mackenzie Canadian Resource Fund.Top 10 investments (of the underlying fund) Asset %

Seven Generations Energy Ltd .................................................................6.71Norbord Inc ................................................................................................4.47MRC Global Inc .........................................................................................4.04Canadian Natural Resources Ltd ..............................................................3.88Reliance Steel & Aluminum Co..................................................................3.62Advantage Oil & Gas Ltd ...........................................................................3.28Buried Hill Energy (Cyprus) PCL P/P ........................................................2.76AngloGold Ashanti Ltd DR .........................................................................2.74Devon Energy Corp ...................................................................................2.50Rio Tinto PLC DR ......................................................................................2.43Total .........................................................................................................36.43Total investments: ......................................................................................96


■Canadian Equity.............................................. 59.15 ■United States Equity ....................................... 25.14 ■ International Equity ........................................... 8.53 ■Bond.................................................................. 3.81 ■Other ................................................................. 2.10 ■Cash.................................................................. 1.26



-60-40-20

020406080

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of companies operating in the natural resource industries and is comfortable with higher risk due to investing solely in this one economic sector.

126


Canadian Resource (Mackenzie)












Fee What you pay






Precious Metals (Mackenzie)




(MER) (%)


All options 3.56 15.83 3,139,028



What does the fund invest in?This segregated fund invests primarily in precious metals and the stock of Canadian companies which produce or supply precious metals currently through the Mackenzie Precious Metals Class.Top 10 investments (of the underlying fund) Asset %

Detour Gold Corp ......................................................................................9.45Agnico Eagle Mines Ltd .............................................................................6.94Randgold Resources Ltd DR .....................................................................6.47Newmont Mining Corp ...............................................................................6.13Tahoe Resources Inc .................................................................................4.99AngloGold Ashanti Ltd DR .........................................................................4.53Goldcorp Inc ..............................................................................................4.03Barrick Gold Corp ......................................................................................4.00Acacia Mining PLC ....................................................................................3.98CAD Cash..................................................................................................3.48Total .........................................................................................................54.00Total investments: ......................................................................................84


■Canadian Equity.............................................. 60.05 ■ International Equity ......................................... 20.36 ■United States Equity ........................................11.51 ■Cash.................................................................. 3.48 ■Other ................................................................. 2.82 ■Bond.................................................................. 1.77



-60-40-20

020406080

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of companies which produce or supply precious metals and is comfortable with higher risk due to investing solely in this one economic sector.

128


Precious Metals (Mackenzie)












Fee What you pay






Smaller Company (Mackenzie)

Quick facts: Date fund available: November 5, 2001Date fund created: November 5, 2001Managed by: Mackenzie Investments



(MER) (%)


All options 3.08 25.34 986,372



What does the fund invest in?This segregated fund invests primarily in stock of North American small and mid-size companies.Top 10 investments Asset %

CAD Cash..................................................................................................5.14Spirit Airlines Inc ........................................................................................3.81Waste Connections Inc ..............................................................................3.68IBERIABANK Corp ....................................................................................3.53DexCom Inc ...............................................................................................3.49First Republic Bank ...................................................................................3.43Lattice Semiconductor Corp ......................................................................3.41Bio-Techne Corp ........................................................................................3.17FEI Co .......................................................................................................3.16Brown & Brown Inc ....................................................................................3.05Total .........................................................................................................35.87Total investments: ......................................................................................63


■United States Equity ....................................... 71.25 ■Canadian Equity.............................................. 13.96 ■ International Equity ........................................... 9.57 ■Cash.................................................................. 5.22



-20-10

010203040

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of stocks and is comfortable with moderate to high risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

130


Smaller Company (Mackenzie)












Fee What you pay






Science and Technology (GWLIM)




(MER) (%)


All options 3.18 23.69 1,143,115



What does the fund invest in?This segregated fund invests primarily in the Canadian and U.S. science and technology companies.Top 10 investments Asset %

Constellation Software Inc .........................................................................7.79CGI Group Inc ...........................................................................................6.35Alphabet Inc...............................................................................................5.96Descartes Systems Group Inc ...................................................................5.17Enghouse Systems Ltd..............................................................................4.41Open Text Corp .........................................................................................4.40Apple Inc....................................................................................................3.77CAD Cash..................................................................................................3.60Facebook Inc .............................................................................................3.48DH Corp.....................................................................................................3.10Total .........................................................................................................48.03Total investments: ......................................................................................54


■United States Equity ....................................... 52.78 ■Canadian Equity.............................................. 39.80 ■Cash.................................................................. 3.81 ■ International Equity ........................................... 3.61



-40-20

0204060

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of Canadian and U.S. companies operating in the science and technology sector and is comfortable with moderate to high risk due to investing solely in this one economic sector.

132


Science and Technology (GWLIM)












Fee What you pay






Global Equity Profile (PSG)Quick facts: Date fund available: November 5, 2001






All options 3.38 15.46 1,119,975



What does the fund invest in?This segregated fund, through investments in other funds, invests primarily in foreign stocks. It targets an asset mix of 100 per cent stocks.Top 10 investments Asset %

American Growth (AGF) ..........................................................................14.99Global Equity (Franklin Templeton) .........................................................10.00Foreign Equity (Mackenzie) .......................................................................9.99U.S. Dividend (GWLIM) .............................................................................9.99U.S. Value (London Capital) ......................................................................9.99European Equity (Setanta) ........................................................................9.49U.S. Equity (London Capital) .....................................................................8.99International Growth (Mackenzie)..............................................................6.99Emerging Markets (Mackenzie) .................................................................6.04International Equity (JPMorgan) ................................................................5.99Total .........................................................................................................92.46Total investments: ......................................................................................12


■United States Equity ....................................... 50.57 ■ International Equity ......................................... 42.01 ■Cash.................................................................. 6.30 ■Other ................................................................. 0.68 ■Canadian Equity................................................ 0.39 ■Bond.................................................................. 0.05



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




Who is this fund for?A person who is investing for the longer term, wants exposure to multi-managers in one fund with a target of 100 per cent invested in foreign equities and is comfortable with moderate risk.

134


Global Equity Profile (PSG)How much does it cost?One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discusswithyourfinancialsecurityadvisor.1. Sales charges:
















Global Low Volatility (ILIM)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Irish Life Investment Managers Limited



(MER) (%)


All options 3.12 28.98 1,294,337



What does the fund invest in?This segregated fund invests primarily in stock of companies anywhere in the world with a focus on those companies and/or sectors that are believed to likely have lower sensitivity to broader market movements.Top 10 investments Asset %

Celgene Corp ............................................................................................3.51Chubb Ltd ..................................................................................................3.18Walt Disney Co ..........................................................................................3.09NXP Semiconductors NV ..........................................................................3.09PNC Financial Services Group Inc ............................................................3.07Johnson & Johnson ...................................................................................2.89Skyworks Solutions Inc..............................................................................2.87Alphabet Inc...............................................................................................2.67Visa Inc ......................................................................................................2.63Apple Inc....................................................................................................2.59Total .........................................................................................................29.59Total investments: ......................................................................................72


■United States Equity ....................................... 74.79 ■Canadian Equity.............................................. 17.08 ■ International Equity ........................................... 7.03 ■Cash.................................................................. 1.10



-30-20-10

0102030

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of global stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesEffective November 2016 Irish Life Investment Management Limited assumed portfolio management responsibilities for the North American Opportunity Fund (Mackenzie). The name of the fund changed to Global Low Volatility (ILIM) from North American Opportunity Fund (Mackenzie). The investment objective of the segregated fund changed from investing primarily in stocks of North American companies to investing primarily in stock of companies anywhere in the world. The performance before that date was achieved under the previous manager and investment objective.

136


Global Low Volatility (ILIM)












Fee What you pay






Foreign Equity (Mackenzie)




(MER) (%)


All options 3.12 20.53 2,522,295



What does the fund invest in?This segregated fund invests primarily in stocks worldwide currently through the Mackenzie Ivy Foreign Equity Fund.Top 10 investments (of the underlying fund) Asset %

Cash and Cash Equivalents ....................................................................29.30Omnicom Group Inc ..................................................................................4.16Procter & Gamble Co ................................................................................3.52Admiral Group PLC ...................................................................................3.45Danone SA ................................................................................................3.38Danaher Corp ............................................................................................3.26United Parcel Service Inc ..........................................................................3.20US Bancorp ...............................................................................................3.13Henry Schein Inc .......................................................................................3.08BrookfieldAssetManagementInc .............................................................2.96Total .........................................................................................................59.44Total investments: ......................................................................................34


■United States Equity ....................................... 39.66 ■Cash................................................................ 29.30 ■ International Equity ......................................... 27.94 ■Canadian Equity................................................ 2.96 ■Other ................................................................. 0.15



-100

10203040

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of foreign stocks and is comfortable with low to moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesThe rating in the “How risky is it?” section increased from “Low to Moderate” to “Moderate” effective December 31, 2015.

138


Foreign Equity (Mackenzie)












Fee What you pay






Global Equity (Putnam)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Putnam Investments Canada ULC.



(MER) (%)


All options 3.14 12.38 3,729,262



What does the fund invest in?This segregated fund invests primarily in stocks anywhere in the world.Top 10 investments Asset %

Yamaha Motor Co Ltd ................................................................................2.84USD Cash..................................................................................................2.67Alphabet Inc...............................................................................................2.56Novartis AG ...............................................................................................1.87Calpine Corp..............................................................................................1.59Japan Tobacco Inc .....................................................................................1.58American International Group Inc ..............................................................1.49Cardinal Health Inc ....................................................................................1.47Hartford Financial Services Group Inc.......................................................1.34J M Smucker Co ........................................................................................1.34Total .........................................................................................................18.75Total investments: ....................................................................................133


■United States Equity ....................................... 52.16 ■ International Equity ......................................... 43.30 ■Cash.................................................................. 2.91 ■Other ................................................................. 0.84 ■Bond.................................................................. 0.79



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesPutnam Investments assumed portfolio management responsibilities for the Global Equity Fund (London Capital) in September 2014. The name of the fund was changed to Global Equity Fund (Putnam). The performance before that date was achieved under the previous investment manager.

140


Global Equity (Putnam)












Fee What you pay






Global Growth (Mackenzie)




(MER) (%)


All options 3.27 14.61 1,666,154



What does the fund invest in?This segregated fund invests primarily in stocks worldwide currently through the Mackenzie Global Growth Fund.Top 10 investments (of the underlying fund) Asset %

Cash and Cash Equivalents ......................................................................4.13Visa Inc ......................................................................................................2.80Alphabet Inc...............................................................................................2.76Progressive Corp .......................................................................................2.61Kanamoto Co Ltd.......................................................................................2.21Morgan Stanley .........................................................................................2.17Wells Fargo & Co ......................................................................................2.06Honeywell International Inc .......................................................................2.01Signature Bank ..........................................................................................1.99Reckitt Benckiser Group PLC ....................................................................1.92Total .........................................................................................................24.66Total investments: ......................................................................................83


■ International Equity ......................................... 58.29 ■United States Equity ....................................... 35.02 ■Cash.................................................................. 4.13 ■Other ................................................................. 2.55



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesEffective November 2016 the name of the segregated fund changed to Global Growth (Mackenzie) from Global Opportunity (Mackenzie). No other changes were made to the segregated fund.

142


Global Growth (Mackenzie)












Fee What you pay






U.S. Equity (London Capital)

Quick facts: Date fund available: January 1, 1988Date fund created: January 1, 1988Managed by: GLC Asset Management Group Ltd.



(MER) (%)


All options 2.98 40.16 1,933,452



What does the fund invest in?This segregated fund invests primarily in United States stocks.Top 10 investments Asset %

USD Cash..................................................................................................6.83Apple Inc....................................................................................................3.62Microsoft Corp ...........................................................................................3.62Visa Inc ......................................................................................................2.78JPMorgan Chase & Co ..............................................................................2.70Alphabet Inc...............................................................................................2.68Alphabet Inc...............................................................................................2.62Allergan plc ................................................................................................2.60Wells Fargo & Co ......................................................................................2.50Home Depot Inc.........................................................................................2.29Total .........................................................................................................32.24Total investments: ......................................................................................60


■United States Equity ....................................... 87.13 ■Cash.................................................................. 7.55 ■ International Equity ........................................... 5.32



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of U.S. stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

144


U.S. Equity (London Capital)












Fee What you pay






U.S. Growth (Putnam)




(MER) (%)


All options 3.27 17.06 2,842,807



What does the fund invest in?This segregated fund invests primarily in U.S. stocks currently through the Mackenzie US All Cap Growth Fund.Top 10 investments (of the underlying fund) Asset %

Amazon.com Inc ........................................................................................4.10Facebook Inc .............................................................................................4.08Alphabet Inc...............................................................................................3.89Alphabet Inc...............................................................................................2.90Apple Inc....................................................................................................2.72Visa Inc ......................................................................................................2.68Celgene Corp ............................................................................................2.36Honeywell International Inc .......................................................................2.19Gilead Sciences Inc ................................................................................... 2.11Microsoft Corp ...........................................................................................2.10Total .........................................................................................................29.13Total investments: ....................................................................................146


■United States Equity ....................................... 87.84 ■ International Equity ........................................... 9.21 ■Cash.................................................................. 1.30 ■Other ................................................................. 0.94 ■Canadian Equity................................................ 0.71


How has the fund performed?This section tells you how the fund has performed over the past 10 years for a policyowner. Returns are after the MER has been deducted.It’s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation.Average returnA person who invested $1,000 in the fund on December 31, 2005 would have $1,942.18 on December 31, 2015. This works out to an average of 6.86 per cent a year.Year-by-year returns(%)This chart shows how the fund has performed in each of the past 10 years. In the past 10 years, the fund was up in value 9 years and down in value 1 year of the 10.

-40-20

0204060

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of U.S stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesPutnam Investments assumed portfolio management responsibilities as sub-advisor for the Mackenzie US All Cap Growth Fund in September 2014. The segregated fund continues to be managed by Mackenzie Investments but the name of the segregated fund has beenchangedtoU.S.Growth(Putnam)toreflectthischange.Theperformancebeforethatdatewasachievedundertheprevioussub-advisor of the underlying fund.

146


U.S. Growth (Putnam)












Fee What you pay






American Growth (AGF)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: AGF Investments Inc.



(MER) (%)


All options 3.38 12.81 3,408,853



What does the fund invest in?This segregated fund invests primarily in United States stocks.Top 10 investments Asset %

Facebook Inc .............................................................................................5.18Amazon.com Inc ........................................................................................4.95Boeing Co ..................................................................................................4.01Red Hat Inc................................................................................................3.97Salesforce.com Inc ....................................................................................3.90MasterCard Inc ..........................................................................................3.79Charles Schwab Corp................................................................................3.65Alliance Data Systems Corp ......................................................................3.61Lennar Corp...............................................................................................3.50T-Mobile US Inc .........................................................................................3.33Total .........................................................................................................39.89Total investments: ......................................................................................38


■United States Equity ....................................... 95.02 ■ International Equity ........................................... 3.04 ■Cash.................................................................. 1.94



-40-20

0204060

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of U.S. stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

148


American Growth (AGF)












Fee What you pay






U.S. Mid Cap (GWLIM)




(MER) (%)


All options 3.20 10.83 1,218,496



What does the fund invest in?This segregated fund invests primarily in U.S. companies that are in the middle capitalization range of the equity market.Top 10 investments Asset %

CAD Cash..................................................................................................3.40MasterCard Inc ..........................................................................................1.97C R Bard Inc ..............................................................................................1.96Visa Inc ......................................................................................................1.96TJX Companies Inc ...................................................................................1.95Southwest Airlines Co................................................................................1.91Precision Castparts Corp...........................................................................1.89Lowe’s Companies Inc ..............................................................................1.87Medtronic PLC ...........................................................................................1.87EMC Corp ..................................................................................................1.87Total .........................................................................................................20.65Total investments: ......................................................................................62


■United States Equity ....................................... 90.33 ■ International Equity ............................................6.11 ■Cash.................................................................. 3.56



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of U.S. stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesEffective November 2016 GLC Asset Management Group Ltd. renamed the segregated fund to U.S. Mid Cap (GWLIM) from U.S. Growth Sectors (London Capital). With this change the risk rating was changed from ‘moderate’ to ‘moderate to high’. No other changes were made to the segregated fund.

150


U.S. Mid Cap (GWLIM)












Fee What you pay






International Equity (JPMorgan)

Quick facts: Date fund available: July 1, 1995Date fund created: July 1, 1995Managed by: JPMorgan Asset Management (Canada) Inc.



(MER) (%)


All options 3.14 17.48 1,889,370



What does the fund invest in?This segregated fund invests primarily in stocks outside of Canada and the U.S. Top 10 investments Asset %

Roche Holding AG Par ..............................................................................2.35Vodafone Group PLC ................................................................................2.28HSBC Holdings PLC..................................................................................2.27Novartis AG ...............................................................................................2.16Sumitomo Mitsui Financial Group Inc ........................................................2.07BG Group PLC ..........................................................................................2.01Toyota Motor Corp .....................................................................................2.01UBS Group AG ..........................................................................................1.99SAP SE ......................................................................................................1.93Prudential PLC ..........................................................................................1.87Total .........................................................................................................20.94Total investments: ......................................................................................90


■ International Equity ......................................... 99.27 ■Cash.................................................................. 0.72 ■Other ................................................................. 0.01



-30-20-10

0102030

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

152


International Equity (JPMorgan)












Fee What you pay






International Growth (Mackenzie)




(MER) (%)


All options 3.16 14.21 1,657,455



What does the fund invest in?This segregated fund invests primarily in stocks of companies outside of North America currently through the Mackenzie International Growth Fund.Top 10 investments (of the underlying fund) Asset %

Roche Holding AG Par ..............................................................................4.69Toyota Motor Corp .....................................................................................3.71UBS Group AG ..........................................................................................3.56Sumitomo Mitsui Trust Holdings Inc ..........................................................3.44WPP PLC ..................................................................................................3.28Total SA .....................................................................................................3.06Reckitt Benckiser Group PLC ....................................................................3.04Novartis AG ...............................................................................................2.96Kanamoto Co Ltd.......................................................................................2.83Ashtead Group PLC ..................................................................................2.78Total .........................................................................................................33.35Total investments: ......................................................................................60


■ International Equity ......................................... 97.06 ■Cash.................................................................. 2.60 ■Other ................................................................. 0.34



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of foreign stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesEffective November 2016 the name of the segregated fund changed to International Growth (Mackenzie) from International Stock (Mackenzie). No other changes were made to the segregated fund.

154


International Growth (Mackenzie)












Fee What you pay






European Equity (Setanta)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Setanta Asset Management Limited



(MER) (%)


All options 3.32 10.72 1,752,273



What does the fund invest in?This segregated fund invests primarily in companies located or active in Europe.Top 10 investments Asset %

CAD Cash................................................................................................10.97DCC PLC ...................................................................................................6.87Diageo PLC ...............................................................................................6.21Groupe Bruxelles Lambert SA ...................................................................5.75CRH PLC ...................................................................................................5.61Lancashire Holdings Ltd ............................................................................4.95Vodafone Group PLC ................................................................................4.73LSL Property Services PLC .......................................................................4.18Liberty Global PLC ....................................................................................3.86C&C Group PLC ........................................................................................3.72Total .........................................................................................................56.85Total investments: ......................................................................................29


■ International Equity ......................................... 88.86 ■Cash.................................................................11.14



-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?A person who is investing for the longer term, seeking the growth potential of European companies, and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.

156


European Equity (Setanta)












Fee What you pay






Far East Equity (CLI)

Quick facts: Date fund available: July 27, 1998Date fund created: July 27, 1998Managed by: Canada Life Investments



(MER) (%)


All options 3.48 23.20 1,656,022



What does the fund invest in?This segregated fund invests primarily in companies located or activeinAsiaorthePacificRim.Top 10 investments Asset %

Lyxor UCITS ETF MSCI India C-EUR .......................................................6.07IMAX China Holding Inc ............................................................................2.86SYDNEY AIRPORT UNT ...........................................................................2.81Genic Co Ltd..............................................................................................2.79W.I.S.E - CSI 300 CHINA TRACKER ........................................................2.78Naturalendo Tech Co Ltd ...........................................................................2.52AmorepacificCorp .....................................................................................2.52Beijing Enterprises Water Group Ltd .........................................................2.37HDFC Bank Ltd DR ...................................................................................2.28AGL Energy Ltd .........................................................................................2.24Total .........................................................................................................29.24Total investments: ....................................................................................102


■ International Equity ......................................... 94.25 ■Other ................................................................. 5.75



-60-40-20

0204060

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

How risky is it?


to high High


Who is this fund for?Apersonwhoisinvestingforthelongerterm,seekingthegrowthpotentialofAsianandPacificRimcompanies,andiscomfortablewithhigh risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time.NotesCanada Life Investments assumed portfolio management responsibilities for the Asian Growth Fund (AGF) in October 2015. The segregated fund was renamed Far East Equity Fund (CLI). The performance before that date was achieved under the previous investment manager. No other changes were made to the segregated fund.

158


Far East Equity (CLI)












Fee What you pay





Glossary of terms

The section provides an understanding of some of the terms used in this information folder.

Administrative rules Internal rules that govern our operations, including policies, guidelines, rules and practices of London Life, which can change at our sole discretion, without notice.

Annuitant The annuitant is the individual on whose life the maturity and death benefit guarantees are based.

Beneficiary The beneficiary is the person, persons or entity appointed to receive any amounts payable after the last annuitant’s death. If there is no living beneficiary, we will pay the death benefit to the policyholder’s estate.

Capital gains The profit that results when an asset is sold for more than its adjusted cost base.

Capital loss The loss that results when an asset is sold for less than its adjusted cost base.

Diversification Investing in a number of different securities, companies, industries or geographic locations in an attempt to reduce the risks inherent in investing.

Guaranteed death benefit The minimum amount to be received by a beneficiary upon the death of the annuitant. For more information, see Guaranteed benefits.

Investment management fee The amount paid for supervising a portfolio and administering policy operations. This fee is a component of the MER.

Life income fund (LIF) or restricted life income fund (RLIF) A LIF/RLIF is established by the transfer of locked-in pension assets from a pension plan, a LRSP, a LIRA or RLSP.

Locked-in plans When used in reference to an RSP, LIF, PRIF, LRIF or pension plan, “locked in,” means a policy in which accumulated benefits can only be used to purchase retirement income as specified by pension regulations.

Load Commissions that may be charged when you allocate premiums or redeem certain investment funds.

Locked-in retirement account (LIRA), locked-in RRSP (LRSP) or restricted locked-in savings plan (RLSP) A LIRA, LRSP or RLSP are registered retirement savings plan from which, generally, funds cannot be redeemed except for the purchase of a life annuity, LIF, PRIF, RLIF or LRIF. A LIRA, LRSP and RLSP are only available until the end of the year in which you turn 71 (or such other age as the tax legislation then in effect may provide).

Locked-in retirement income fund (LRIF) A legislated type of RRIF which applies to locked-in funds transferred from an LIRA. This type of plan is available only in certain provinces. The legislation governs the minimum and maximum annual payout. An LRIF may be converted to a life annuity at any age, but it is not necessary to do so.

Management expense ratio (MER) The MER is the total of the annual investment management fee and operating expenses (including any applicable expenses of an underlying fund) paid by the segregated fund, and is expressed as an annualized percentage of daily average net assets during the year. The MER includes GST and interest, where appropriate, for all years. Where the reporting period is less than one year, the MER has been annualized.

Maturity date The contractual date the policy matures.

Maturity guarantee The minimum amount to be received by the policyholders upon maturity of the policy. For more information, see Guaranteed benefits.

160


Maximum age Maximum age means the maximum age stipulated for a maturing RRSP as set out in the Income Tax Act (Canada) as amended from time to time. As of the date of this information folder, the date and the maximum age stipulated in the Income Tax Act (Canada) is Dec. 31 of the year the annuitant attains age 71.

Policyholder The policyholder is the individual who is the legal owner of the policy. One or more individuals may own non-registered policies. Registered policies can only be owned by one individual, the annuitant. All policy information is sent to the policyholder.

Portfolio turnover rate The investment fund’s portfolio turnover rate shown in the Fund Facts generally indicates how actively the investment manager manages the investments. A portfolio turnover rate of 100 per cent is equivalent to the investment fund buying and selling each security once in the course of the year. High portfolio turnover rates can increase portfolio costs and may also increase the likelihood of taxable capital gains being distributed by the investment fund. There is no proven relationship between a high turnover rate and the performance of an investment fund.

Registered pension plan (RPP) A plan registered with Canada Revenue Agency and established by an employer to provide pension benefits for employees when they retire. Both employer and employee may contribute to the plan and contributions are tax-deductible.

Prescribed retirement income fund (PRIF) A PRIF is available in certain provinces and is a prescribed retirement arrangement that can be established with funds locked-in by pension legislation. These work the same way as a RIF, with a legislated minimum amount that must be redeemed each year.

Retirement income fund (RIF or RRIF) A registered policy which permits annual redemptions to provide retirement income, while maintaining the tax-free accumulation of the remaining balance. The annual redemptions must be at least equal to a minimum calculated according to a prescribed formula.

Retirement savings plan (RSP or RRSP) A plan available to individuals to defer tax on a specified amount of money to be used for retirement. Income tax on contributions and earnings within the plan is deferred until the money is redeemed at retirement. RRSPs proceeds can be transferred into retirement income funds.

Segregated fund For information, see How our investment funds work.

Underlying fund An underlying fund is a secondary fund, usually a mutual or pooled fund, in which some of our investment funds may invest. By purchasing units in an investment fund, you do not become a unitholder of the underlying fund. For more information, see How our investment funds work.

161


162


N O V E M B E R 2 0 1 6

London Life Insurance Company.This document is not an insurance contract.

Freedom Fund, Investment Voyager, London Life and design are trademarks of London Life Insurance Company. 47-0121-11/16

FREEDOM FUNDS AND MARKETWATCH POLICIES

INFORMATION FOLDER

FREEDOM FUNDS AND MARKETWATCH POLICIES INFORMATION … · NOVEMBER 2016 London Life Insurance...

Documents

Transcript of FREEDOM FUNDS AND MARKETWATCH POLICIES INFORMATION … · NOVEMBER 2016 London Life Insurance...