quarterly update - industrielle alliance · 2019-09-05 · 777 8th avenue, s.w., suite 2000...

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The Quarterly Update is written, designed and produced by the Client Service division of Industrial Alliance’s Investments and Communications departments.

Legal deposit: December 2015ISSN 1706-9556Bibliothèque nationale du QuébecNational Library of Canada

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Quarterly Update Volume 20, Number 4Fourth Quarter, December 31, 2015

GROUP SAVINGS AND RETIREMENT

Head Office1080 Grande Allée West PO Box 1907, Station Terminus Quebec City, Qc G1K 7M3

Telephone: 418-684-5222 Toll free: 1-800-567-5670 Fax: 418-684-5187 ia.ca [email protected]

Industrial Alliance

Halifax238 Brownlow Avenue, Suite 320 Dartmouth, NS B3B 1Y2

Telephone: 902-422-6479 Toll free: 1-800-255-2116 Fax: 902-422-1183 [email protected]

Quebec City925 Grande Allée West, Suite 420 Quebec City, QC G1S 1C1


Montreal2000 McGill College Avenue, Suite 2100 Montreal, QC H3A 3H3


Toronto522 University Avenue, 13th Floor Toronto, ON M5G 1Y7


Calgary777 8th Avenue, S.W., Suite 2000 Calgary, AB T2P 3R5

Telephone: 403-218-3248 Toll free: 1-888-532-1505, extension 248 Fax: 1-855-780-2375 [email protected]

Vancouver1188 West Georgia Street, Suite 1910 Vancouver, BC V6E 4A2

Telephone: 604-689-0388, extension 223 Toll free: 1-800-557-2515 Fax: 604-689-0537 [email protected]

Group Savings and Retirement

Industrial AllianceQuarterly Update | Group Investment FundsFourth quarter, ending December 31, 2015

Quarterly Update

Group savings and retirementContents

Economic and Financial Environment . . . . . . . . . . . . . . . . . . . . 3

Market indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Our Investment Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

ATTITUDE Portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Asset Allocation FundsAsset Allocation - Conservative . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Asset Allocation - Moderate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Asset Allocation - Balanced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Asset Allocation - Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Asset Allocation - Aggressive Growth . . . . . . . . . . . . . . . . . . . . . . . . 34

Income FundMoney Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Short Term Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Emerald Canadian Bond Index (TD) . . . . . . . . . . . . . . . . . . . . . . . . . 37Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Bond (Fiera Capital) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Bond (PH&N) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Core Plus Bond (PH&N) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Core Plus Bond (PIMCO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Long Term Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Core Plus Long Term Bond (PIMCO) . . . . . . . . . . . . . . . . . . . . . . . . . 44Global Fixed Income (PIMCO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Floating Rate Bank Loan (AlphaFixe) . . . . . . . . . . . . . . . . . . . . . . . . 46

Diversified FundsDiversified Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Balanced Moderate Index (BlackRock) . . . . . . . . . . . . . . . . . . . . . . . 48Diversified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Balanced (Beutel Goodman) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Balanced (Jarislowsky) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Balanced Growth (MFS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Balanced (PH&N) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Diversified Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Fidelity Canadian Asset Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Canadian Equity FundsCanadian Equity Index (TD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Canadian Dividend (Beutel Goodman) . . . . . . . . . . . . . . . . . . . . . . . 58Canadian Equity Value (PH&N) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Canadian Equity (QV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Canadian Equity Selexia (Fiera Capital) . . . . . . . . . . . . . . . . . . . . . . . 61Canadian Focused Equity (Pyramis) . . . . . . . . . . . . . . . . . . . . . . . . . 62Canadian Equity Low Volatility (TD) . . . . . . . . . . . . . . . . . . . . . . . . . 63Canadian Equity All Cap (Triasima) . . . . . . . . . . . . . . . . . . . . . . . . . . 64Canadian Equity Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Canadian Equity Q Growth (CC&L) . . . . . . . . . . . . . . . . . . . . . . . . . . 66Canadian Equity (Jarislowsky) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Canadian Equity Growth (MFS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Canadian Equity Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Fidelity True North® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Canadian Equity Responsible (MFS) . . . . . . . . . . . . . . . . . . . . . . . . . 71Canadian Equity Small Cap (Montrusco) . . . . . . . . . . . . . . . . . . . . . . 72Canadian Equity Small Cap (QV) . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Foreign Equity FundsGlobal Equity Index ACWI (BlackRock) . . . . . . . . . . . . . . . . . . . . . . . 74Global Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Global Equity (Hexavest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Global Equity (C$-Hedged) (Hexavest) . . . . . . . . . . . . . . . . . . . . . . . 77Global Equity (QV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Global Equity (Sprucegrove) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Global Equity (Templeton) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Global Equity (Aberdeen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Global Research Equity (MFS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82Global Select Equity (Pyramis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Global Equity Low Volatility ACWI (TD) . . . . . . . . . . . . . . . . . . . . . . 84Global Equity (Mawer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85Global Equity Endeavour (Invesco) . . . . . . . . . . . . . . . . . . . . . . . . . . 86Global Equity Small Cap (Deutsche AWM) . . . . . . . . . . . . . . . . . . . . 87Global Equity Small Cap (Mawer) . . . . . . . . . . . . . . . . . . . . . . . . . . . 88International Equity Index (BlackRock) . . . . . . . . . . . . . . . . . . . . . . . 89International Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90International Equity (Hexavest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91International Equity (Sprucegrove) . . . . . . . . . . . . . . . . . . . . . . . . . . 92International Equity (Templeton) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93International Equity (Aberdeen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94International Equity (Jarislowsky) . . . . . . . . . . . . . . . . . . . . . . . . . . . 95International Equity (Mawer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96International Equity (MFS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97U .S . Equity Index (BlackRock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98U .S . Equity Index Non-Registered (BlackRock) . . . . . . . . . . . . . . . . . . 99U .S . Dividend Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100U .S . Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101U .S . Equity (Jarislowsky) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102U .S . Equity (Mawer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103U .S . Equity Core (MFS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104U .S . Equity (Fiera Capital) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105Emerging Markets Equity Index (BlackRock) . . . . . . . . . . . . . . . . . . . 106Emerging Markets (Aberdeen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107Emerging Markets (Templeton) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Alternative/Specialty FundsBalanced-Risk Allocation (Invesco) . . . . . . . . . . . . . . . . . . . . . . . . . . 109Global Developed Real Estate Index (BlackRock) . . . . . . . . . . . . . . . . 110Global Real Estate (Pyramis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111Global Infrastructure Equity Index (BlackRock) . . . . . . . . . . . . . . . . . 112Global Infrastructure (Lazard) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113Canadian Resources (Invesco) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Global Direct Real Estate - 100% (UBS) . . . . . . . . . . . . . . . . . . . . . . 115Global Direct Real Estate - Portfolios (UBS) . . . . . . . . . . . . . . . . . . . . 116

Gross returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Legal Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

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Group savings and retirement

Economic and Financial Environment

As at December 31, 2015

The Fed (finally) makes its moveBy Sébastien Mc Mahon, M.E.Sc., PRM, CFAEconomist Industrial Alliance Insurance and Financial Services Inc .

The fourth quarter of 2015 was marked by volatility, reversals, and ends . Following its first correction of more than 10% in four years, the U .S . market made a comeback in October, erasing almost all the losses recorded over the summer . The emerging economies, after having been responsible for a large part of the year’s uncertainty, saw their situation reverse itself and are now exceeding expectations at a pace not seen in nearly three years . Closer to home, the U .S . Federal Reserve (Fed) finally raised its key rate by 0 .25%, a gesture symbolizing the start of monetary policy normalization in the United States . It should be said that the Fed’s governors had been preparing the ground since their September meeting, when many observers accused the Fed of having injected a strong dose of uncertainty and confusion into the markets . It now remains to be seen whether the beginning of a monetary tightening cycle will ultimately be well received by the markets, which seem to have had a rather mixed reaction in the days following the announcement .

World: Emerging economies are back

After having been the primary source of concern on the macroeconomic scene since the summer, the emerging countries, which represent more than 50% of the world economy and which will be responsible for nearly 75% of the planet’s growth in 2016 (graph 1), picked up again in the fourth quarter . The economic surprise index for emerging markets, which measures the average surprise of published economic indicators compared to experts’ expectations, has entered positive territory and even ended the year near a four-year high (graph 2) .

The tone is improving in Asia in particular, led by China, where the indicators are pointing to a recovery in exports in 2016 . The global manufacturing index suggests an expansion for the year to come, bolstered by the accumulation of multiple quantitative easing programs and ultra-accommodating monetary

policies in various countries over the last few years . This should boost trade between emerging countries and with developed countries, stimulating an appreciation in exporting countries’ currencies and, in so doing, putting some downward pressure on the U .S . dollar .

Europe: A calmer year in store?

Europe regained some of its economic calm in the fourth quarter, despite the fact that this was clearly not the case on the geopolitical front .

European economic performance is lukewarm, with growth rates that are just high enough to leave behind the spectre of deflation but just low enough to justify continued monetary support by the European Central Bank (ECB), which has extended its quantitative easing program until March 2017 .

The ECB’s efforts are starting to produce tentative results, with the credit cycle moving into positive territory over the last few months (graph 3) .

We expect 2016 to continue in the same vein as the end of 2015, that is, with economic data slowly improving, a central bank that remains largely accommodating, and general calm on the economic front . There could still be some surprises on the political front, with Spain just removed from an election which leaves the country in political limbo, but resolution of the Greek situation seems to have quelled the fervour of the anti-austerity movement, at least for the moment .

United States: More expansion ahead

Economic growth continues for our southern neighbours, despite a slight slowing in the manufacturing sector since the summer, which has made some observers skeptical about the outlook for 2016 .

Source: iAIM

Graph 1

Source: iAIM

Graph 2

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Economic and Financial Environment (continued)


We continue to maintain a very positive outlook for the U .S . economy . The main reason lies in households, whose consumption represents 70% of the GDP and which will continue to benefit from the strength of the job market as well as the overall increase in household wealth . The next step should be an increase in wages, which could occur in 2016 if we are to believe the intentions of small and medium-sized enterprises which have leapt in this direction over the last few months (graph 4) .

Another major element, in our opinion, is the beneficial effects of the significant drop in energy prices, both for gasoline and natural gas, which will result in the average household enjoying several hundred dollars more in disposable income in 2016 . At the moment, we’ve seen that most households have chosen to put away their savings earned at the pump; however, the already high level of savings means we may now see families start to spend the additional amounts saved .

As for the general economic picture in 2016, we are forecasting continued growth, with sustained vigour in the domestic economy, driven by consumption and, possibly, a new wave of business investments . The strength in exports will depend on the strength of the U .S . dollar (which could put a brake on sales outside the country) and of emerging markets .

Canada: Cautious optimism

The general improvement in Canadian data in the second half of the year leads us to display cautious optimism .

After a difficult first half of the year, marked by a contraction that was concentrated in the oil-producing provinces, economic growth rebounded to such a degree that Canadian GDP in August had already regained what it had lost at the beginning of the year . The Bank of Canada therefore was in part correct: the negative effects of the oil price collapse had a rapid effect on the Canadian economy, and the cuts orchestrated by the Bank at the beginning of the year may have accomplished their purpose .

A significant number of jobs were created in 2015 and, to our great surprise, the western provinces continued to put their shoulders to the wheel . The majority of jobs were created in central Canada (Ontario and Quebec), where consumers enjoy the lowest energy costs and where the negative effects of the oil price collapse were limited .

The decline of the Canadian dollar, which has dipped even further since the summer, also played an important role . We are of course expecting that a weaker loonie will stimulate the manufacturing sector, given the importance of exports to the U .S . market in this sector, and there again we have reasons to be cautiously optimistic .

Job creation in the manufacturing sector was its second highest in 13 years (graph 5) this year, a sign that some of the production capacity lost in the years when the loonie was trading at parity with the greenback is being restored . However, export volumes of non-energy good are still disappointing: it seems that Canadian exporters are no longer able to play their game as well in the U .S . market, at least if we are to judge from the level of U .S . imports which is rising faster than that of our exports (graph 6) .

The real estate market still seems balanced, despite headlines claiming that prices are skyrocketing . On this front, it is important to distinguish between the situation in the areas of Vancouver and Greater Toronto, where prices are up nearly 10% year over year as a result of intense demographic inflows (international and interprovincial) that are fueling housing starts, and that of other regions where growth is more or less zero given the absence of demographic pressures . The new Trudeau government has already announced new measures aiming to contain the rise in real estate prices (and primarily speculation), by raising the down payment requirements for homes selling between $500,000 and $1,000,000 . This is a laudable but relatively timid measure, in that it primarily targets the markets of Vancouver and Toronto (where 40% of transactions are in that price range) and, to some degree, Calgary, but it is not likely to have a significant impact on the country as a whole .Source: iAIM

Graph 3

Chart 1Returns of the Canadian Bond Market

as at December 31, 2015

Index Returns (%)3 months YTD

FTSE TMX Canada Universe Bond Index 1.0 3.5

FTSE TMX Canada Short Term Bond Index 0.5 2.6

FTSE TMX Canada Mid Term Bond Index 1.0 4.9

FTSE TMX Canada Long Term Bond Index 1.6 3.8

FTSE TMX Canada Federal 0.7 3.7

FTSE TMX Canada Provincial 1.6 4.1

FTSE TMX Canada Municipal 1.1 3.2

FTSE TMX Canada Corporate 0.6 2.7

Source: Scotia Capital Debt Market Indices

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The year 2016 should be marked by the return of the fiscal tool, as Canada, which has the lowest indebtedness ratio of the G-7, deliberately goes into deficit in order to stimulate economic growth . We welcome the infrastructure spending proposed by the new federal government, as it will enable Canada to boost its growth potential and help overcome the national infrastructure deficit, which some estimate at above 700 billion dollars .

Financial markets: Market recovery and the Fed finally moves

Volatility was back and remained centre stage in the fourth quarter of 2015 .

The quarter was initially off to a flying start, with the U .S . stock market delivering a superb performance . Following last August’s correction, the market

had ended the month of September near the year’s lowest point; however, it then recovered almost all the ground lost with a gain of 8 .4% in October (5 .9% in Canadian dollars) . Several observers expressed doubt during the quarter over the strength and sustainability of this recovery, given that the market had been pushed up by just a few dozen high-growth stocks, but a good share of the gains still held at the end of the quarter .

The month of December finally brought us the first rate hike by the U .S . Federal Reserve since 2006 . The Fed says it is now much more confident in the U .S . economic outlook and notes that the job market is quickly approaching full employment, although there is still excess capacity due to historically low participation rates . The press release accompanying the decision clearly states that inflation pressures and inflation expectations will be closely monitored and will determine future adjustments to the Fed’s monetary policy .

Initial market reaction was mixed but orderly, showing that the Fed had succeeded in managing expectations and preparing investors for this possibility . The bond market remained more or less stable, even showing some slight gains, which is encouraging because the worst scenario would have been a wave of panic leading to a disorderly correction in the world’s biggest market . Which goes to show that markets prefer certainty to uncertainty!

The Canadian bond market ended the year with another positive quarter and, despite our expectations conveyed several times here, posted another year of gains . The FTSE TMX Canada Universe Bond Index was up 1 .0% in the fourth quarter, for a total gain of 3 .5% in 2015 . Short-term bonds grew 2 .6% and long-term bonds posted a gain of 3 .8% in 2015 .

The U .S . stock market held on to some of the gains recorded in October and ended the quarter up 7 .0% (10 .6% in Canadian dollars) . The Canadian stock market was down again with a 1 .4% contraction in the S&P/TSX Composite Index compared to a gain of 1 .1% in the small-cap index . In 2015, the Canadian stock market lost 8 .3%, underperforming the U .S . market for a fifth consecutive year .

The stock markets of Europe, Asia and the emerging markets entered positive territory in the fourth quarter . The European market, represented by the MSCI - Europe Index, was up 5 .2% (+5 .9% in Canadian dollars), while the MSCI - EAFE Index gained 6 .3% (+8 .2% in Canadian dollars) and the MSCI - World Index grew 6 .2% (+9 .0% in Canadian dollars) . Finally, the MSCI - Emerging Markets Index posted a slight gain of 1 .6% (+4 .1% in Canadian dollars) .

Strategy: Time to go back to Canadian equities?

Our strategy within the diversified funds was similar to that of the last quarter of 2014 . After the stock market correction in August, when we took advantage of the situation to significantly increase the weight of equities over cash, we gradually reduced our exposure to equities in light of the scope and speed of the recovery .

The result is that we ended the quarter slightly overweight in equities, but with a small difference: we now have a stronger weighting of Canadian equities than U .S . equities .

Chart 2Market Returns as at December 31, 2015


FTSE TMX Canada 91 day T-bill Index 0.1 0.6

FTSE TMX Canada Universe Bond Index 1.0 3.5

S&P/TSX Composite Index (1.4) (8.3)

S&P 500 (Can. $) 10.6 21.0

MSCI - EAFE (Can. $) 8.2 18.3

MSCI - World (Can. $) 9.0 18.3

Exchange Rate (Can. $/US $) 3.3 19.3

Chart 3Market Returns as at December 31, 2015


S&P/TSX Sector ReturnsEnergy (1.6) (22.9)

Materials 3.8 (21.0)

Industrials (1.2) (11.1)

Consumer Discretionary (5.2) (1.5)

Consumer Staples 0.8 12.4

Health Care (36.9) (15.6)

Financials 1.7 (1.7)

Information Technology 10.5 15.6

Telecommunication Services (1.7) 3.6

Utilities (1.3) (3.5)

S&P/TSX Composite Index (1.4) (8.3)

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In terms of market valuation, we believe that U .S . equities are properly valued (graph 7) (therefore no overvaluation, according to our estimates) and that the return outlooks, although modest, are positive for the next few years (graph 8) . The main factor that causes us to remain cautious is the fact that the profit margins of U .S . firms are perched close to a 60-year high, meaning that impending wage pressures, as well as the eventual need to step up investments, should slow profit growth for U .S . firms .

On the Canadian stock market, we deem that the time has come to take advantage of the fact that the S&P/TSX is at a two-year low to build a greater position within our diversified funds .

Several factors are pushing us in this direction .

First, 2015 was the fifth consecutive year where the Canadian market under-performed with respect to the U .S . market, and in all of history, such a sequence has never continued into a sixth year . Historically, after such a sequence, the Canadian market has outperformed the U .S . market by more than 20% . In a context where emerging markets are expanding and oil prices are stabilizing, we believe it probable that the ensuing context will favour commodities-linked assets as well as those that perform well in a “risk on” environment .

Second, during previous periods of Fed rate hikes, we saw that in the first six months following the first hike, the Canadian stock market performed better than the U .S . stock market, and that the Canadian dollar rose (graph 9) .

Finally, the overall valuation of the energy sector, measured by the price-to-book ratio, shows that current levels correspond more or less to historic lows (graph 10) . This observation leads us to believe that the worst of the collapse in energy-related stocks is behind us, and that it’s time to direct a greater share of our asset allocation to the Canadian market .

The loonie fell further over the quarter, dipping below 72 cents U .S ., pushed downward by another drop in oil prices and the divergence in monetary policies in North America . We took advantage of recent lows (corresponding in fact to an 11-year low!) to cover our exposure to the U .S . dollar, a new move which should reduce the volatility of our portfolios in an environment where the loonie could benefit from a rebound in the emerging economies and, possibly, from a slight increase in the price of oil in 2016 .

Our wave of equity purchases at the end of the quarter brought the Diversified Fund’s exposure to equities above the neutral targets dictated by the investment policy . Canadian stocks now account for more than 38% of the Diversified Fund, of which 9% are invested in small-cap stocks . International stocks once again account for 25% of assets, including over 2% exposure to emerging markets through a position within the MSCI - Mexico index .

The weight of bonds remains below the target, at 24% versus a target of 45%, at the same level as at the end of the previous quarter . Now that the Fed has begun the process of normalizing its monetary policy, we expect the bond market to remain under pressure .

Finally, the cash balance now accounts for nearly 13% of the fund’s assets, and we no longer hold any direct exposure to the U .S . dollar . At the loonie’s current levels (close to US$0 .72 at the end of the quarter), we are no longer as convinced about the future movements of our currency .

Chart 4Asset mix: Diversified Fund (040)

Min. Neutral Max.Actual Weight

Over Weight (+)/ Under Weight (-)

Change in quarter

Money Market 0 5 25 13.0% +8.0% +0.5%Canadian Bonds 20 45 70 24.0% -21.0% 0.0%

International Bonds 0 0 15 0.0% 0.0% 0.0%

Total – Bonds 20 45 70 24.0% -21.0% 0.0%

Canadian Equities 5 25 45 37.5% +12.5% +7.0%U.S. Equities 0 12.5 45 11.5% -1.0% -8.5%

International Equities 0 12.5 45 11.5% -1.0% +1.0%

Emerging Markets 0 0 45 2.5% +2.5% 0.0%

Total – Foreign Equities 5 25 45 25.5% +0.5% -7.5%

Total – Portfolio 100 100.0%

- 6 -





Chart 5Estimated Gross Returns for the Next 12 Months Starting on December 31, 2015

Market indicators Interest or dividend + Capital gains = Total estimated gross return

FTSE TMX Canada 91 Day T-Bill Index 0.50% + 0.00% = 0.50%

FTSE TMX Canada Universe Bond Index 3.20% + (3.24%) = (0.04%)

Canadian stocks (S&P/TSX Composite Index) including dividends 8% to 11%

- 7 -





Chart 6Economic and financial scenarios

Economic scenarioChange since

September 30, 2015

2013 2014 2015 2016 2017 2015 2016

United States Real GDP 1.5% 2.4% 2.4% 2.8% 2.6% -0.1% -0.1%

Inflation rate 1.5% 1.6% 0.1% 1.6% 2.0% -0.1% -0.3%

Unemployment rate 7.4% 6.2% 5.3% 4.8% 4.7% --- -0.1%

Canada Real GDP 2.2% 2.5% 1.2% 1.8% 2.1% --- -0.2%

Inflation rate 0.9% 1.9% 1.2% 1.9% 2.0% --- +0.2%Unemployment rate 7.1% 6.9% 6.9% 6.9% 6.7% +0.1% +0.2%

Financial scenario*

TargetsChange since

September 30, 2015

Actual June 16 Dec. 2016 June 2017 June 2016 Dec. 2016

Interest rate

U.S. 10-year rates 2.27% 2.50% 2.70% 3.20% -0.40% -0.50%

Canada 10-year rates 1.39% 1.70% 1.90% 2.20% -0.40% -0.50%

Exchange rates$US/$CAD 0.72 0.72 0.75 0.77 -0.08 -0.05

$US/Euro 1.09 1.05 1.05 1.05 --- ---

Oil price (WTI), $US 37.04 35 40 45 -17 -15

S&P 500 2,043 2,000 2,100 2,200 -100 -100

S&P/TSX 13,010 13,000 14,050 15,200 -2,000 -1,450

* end of period

- 8 -



Graph 8

Source: J.P. Morgan Asset Management

Graph 6

Source: NBF Economics and Strategy (data via Statistics Canada)

Graph 7

Graph 4 Graph 5

Source: NBF Economics and Strategy (data via Statistics Canada)

Source: J.P. Morgan Asset Management

Source: iAIM

Source: Canaccord

Graph 9

- 9 -



Graph 10

S&P/TSX : Relative valuation of the energy sector showing an opportunity?

?

Source: Canaccord

- 10 -


FTSE TMX Canada Universe Bond Index

10 Year Period ending December 31, 2015

Return % 1 month YTD 1 year 3 years 5 years 10 years 1 .1 3 .5 3 .5 3 .6 4 .8 5 .0

Source: iAIM

BMO Nesbitt Burns Small Cap Index


Return % 1 month YTD 1 year 3 years 5 years 10 years (2 .7) (13 .8) (13 .8) (2 .4) (4 .0) 2 .3

Source: iAIM

S&P/TSX Sector Performance

Year to Date to December 31, 2015

Information Technology 15 .64%Consumer Staples 12 .41%Telecommunication Services 3 .56%Consumer Discretionary (1 .51)%Financials (1 .70)%Utilities (3 .49)%Industrials (11 .06)%Health Care (15 .63)%Materials (21 .04)%Energy (22 .87)%

Source: iAIM

Evolution of the Canadian dollar vs US dollar


Source: iAIM

$ CDA/1$ US

S&P/TSX Composite Total Return Index


Return % 1 month YTD 1 year 3 years 5 years 10 years (3 .1) (8 .3) (8 .3) 4 .6 2 .3 4 .4

Source: iAIM

Canadian and US Interest Rates


Source: iAIM

%

Federal Reserve Key Rate Bank of Canada

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$16,333

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$15,358

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$12,584

Market indicators

%

- 11 -


Total Return Index MSCI - World Index (Can. $) MSCI - World (Local $)


Return % 1 month YTD 1 year 3 years 5 years 10 years (Can. $) 2 .0 18 .3 18 .3 22 .4 14 .9 6 .8 (Local $) (2 .2) 2 .1 2 .1 13 .0 9 .6 4 .9

Source: iAIM

Total Return Index MSCI - EAFE (Can. $) MSCI - EAFE (Local $)


Return % 1 month YTD 1 year 3 years 5 years 10 years (Can. $) 2 .4 18 .3 18 .3 17 .2 10 .7 4 .8 (Local $) (2 .7) 5 .3 5 .3 12 .3 7 .9 3 .2

Source: iAIM

Total Return Index MSCI - Emerging Markets (Can. $) MSCI - Emerging Markets (Local $)


Return % 1 month YTD 1 year 3 years 5 years 10 years (Can. $) 1 .5 1 .9 1 .9 4 .5 2 .1 5 .7 (US $) (1 .0) (5 .4) (5 .4) 1 .2 1 .3 6 .4

Source: iAIM

Total Return Index S&P 500 (Can. $) S&P 500 (US $)


Return % 1 month YTD 1 year 3 years 5 years 10 years (Can. $) 2 .2 21 .0 21 .0 28 .5 20 .3 9 .2 (US $) (1 .6) 1 .4 1 .4 15 .1 12 .6 7 .3

Source: iAIM

S&P 500 (Can. $) Sector Performance


Consumer Discretionary 29 .09%Health Care 25 .26%Information Technology 24 .13%Consumer Staples 23 .54%Telecommunication Services 17 .00%Financials 14 .91%Industrials 13 .44%Utilities 9 .07%Materials 6 .71%Energy (8 .99)%

Source: iAIM

MSCI - World (Can. $) Sector Performance


Consumer Staples 28 .48%Health Care 28 .36%Financials 16 .54%Consumer Discretionary 16 .29%Telecommunication Services 12 .78%Information Technology 11 .81%Utilities 7 .35%Industrials 6 .45%Materials 2 .11%Energy (9 .43)%

Source: iAIM

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$20,242

$24,029

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$16,205

$19,298

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$13,741

$16,000

06 07 08 09 10 11 12 13 14 15

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$17,483

$18,519

Market indicators (continued)

- 12 -

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Our investment Advisors


Aberdeen Asset Management PLC is a pure asset management company that only manage assets for third parties, allowing them to focus solely on their clients’ needs .

Their clients access their investment expertise in three main asset classes: equities, fixed income and property as well as tailored solutions .

They package their skills in the form of segregated and pooled products across borders . They invest worldwide and follow a predominantly long-only approach, based on fundamentally sound investments . In other words, they do not chase market fads .

Their investment teams are based in the markets or regions in which they invest .

Their clients understand their process and portfolios because they are transparent .

In the equity asset class, their investment style is bottom-up with a team-based approach and their portfolios tend to have a low turnover .

Founded in 2008 by three seasoned professionals, AlphaFixe Capital is a Quebec investment management firm specializing in fixed income securities that serves mainly institutional clients The entrepreneurial spirit and vitality that drive AlphaFixeare well suited to investors seeking a partner to assist them and overcome the challenges they face AlphaFixe’s investment philosophy is inspired in part by the consequences of the 2008 financial crisis and based on a rigorous risk management process The strategic notions of capital preservation and flexible execution serve as a constant guide for AlphaFixe and extend also to its internal management models, which are both sophisticated and accessible .

BlackRock, Inc. (“BlackRock”) is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide . BlackRock offers products that span the risk spectrum to meet clients’ needs, including active and index strategies across markets and asset classes . Headquartered in New York City, the firm has over 12,000 employees in 30 countries .

Beutel, Goodman & Company Ltd. was founded in 1967 as a privately owned, value-oriented Canadian investment management organization . Majority owned by its employees, BG specializes in the management of domestic and global equity, balanced and fixed income mandates for institutional and individual investors . Beutel Goodman has over $30 billion in assets under management .

Established in 1982, CC&L is one of Canada’s largest independent partner-owned money management firms . The firm offers a diverse array of investment services including equity, fixed income, balanced and alternative solutions . With offices in Vancouver and Toronto, CC&L provides professional management of financial assets for pension fund sponsors, capital accumulation plans, corporations, not-for-profit organizations, First Nations, mutual funds and individual investors .

Group savingsand retirement

Our Investment Advisors

iA Investment Management, a subsidiary of Industrial Alliance Insurance and Financial Services Inc . (Industrial Alliance), offers management services to affiliated companies as well as to institutional clients . iA Investment Management relies on a team of more than 120 individuals, including more than 60 investment professionals, operating in its offices in Quebec City, Montreal and Toronto . This team of professionals sees to the management of several diversified, bond and stock mandates . The performance of the various

portfolios managed by the team demonstrates efficient and prudent management, which adds value without taking undue risk .

iA Investment Management also supervises all external fund managers to whom it entrusts certain mandates .

- 16 -


Deutsche Asset & Wealth Management is the global institutional and wealth asset management business of Deutsche Bank . The firm offers a broad range of investment strategies spanning the risk/return spectrum to institutional clients worldwide .

Deutsche Asset & Wealth Management believes that there is just one, increasingly global market . That is why the firm has more than 800 investment professionals located in 16 countries, allowing it to combine a broad view on global trends with deep insight into local dynamics and market inter-relationships .

Fiera Capital Corporation is an independent full-service, high quality, strongly capitalized investment management firm with approximately $65 billion in assets under management .

Fiera Capital is driven by an aspiration to constantly deliver optimal performance in everything they do . Their structure promotes excellence within their specialized investment teams by combining the flexible and efficient environment of a multi-style investment manager with the scale of resources offered by one of Canada’s leading investment firms . With offices in Toronto, Montreal, Vancouver and Boston, Fiera Capital has over 200 employees .

Fidelity Investments is the world’s largest mutual fund company . In business since 1946, Fidelity Investments can rely on more than 800 portfolio managers, analysts, traders and other financial professionals . Fidelity Investment’s head office is located in Boston with offices in every major city around the world .

The investment philosophy of Fidelity Investments equity selection is clearly defined, and is based on a “bottom-up” fundamental investment approach . This means that portfolio managers select securities based on a thorough analysis of individual companies (e .g ., balance sheets, cash flows, earnings growth, and quality of management) . In addition, each of the funds reflects the portfolio manager’s unique investment style, whether for selecting solid growth companies or for determining the optimal asset mix for the asset allocation Fund .

Founded in 2004 and based in Montreal, Hexavest is an investment management firm specialized in discretionary investment management of equities and tactical asset allocation for institutional clients . The firm is majority-owned (51%) by its employees and by Eaton Vance (49%), a U .S .-based investment management firm .

The creation of Hexavest came about when its six founding partners decided to unite their efforts to build a dynamic and stimulating environment that would enable them to focus on generating added value for their clients . The investment team was formed in 1991 and has expanded over the years to develop a very unique and rigorous investment approach that has generated value in all types of market environments, especially in difficult and turbulent times . Hexavest possesses an edge in analyzing macroeconomic factors and in identifying excesses at the stock selection level . Thus, the firm’s approach is predominantly top-down and combines fundamental research and proprietary quantitative models . Considerable emphasis is placed on preserving client capital, which is reflected by a value bias in the various portfolios .

Invesco, is a leading independent global investment management company, dedicated to helping people worldwide build their financial security . Invesco has earned the trust of investors around the world . With fully integrated investment capabilities that span traditional and alternative asset classes, Invesco is one of the world’s leading names in investment management for institutions and individuals worldwide .

With more than 700 investment professionals operating in 25 distinct investment centers across 20 countries, Invesco has a significant presence in the institutional and retail markets across North America, Europe and Asia-Pacific . Invesco’s extensive global footprint, high level of diversification and full range of investment capabilities enable them to quickly and effectively meet the diverse needs of their clients, wherever they reside . Their single focus on asset management means that their investment and marketing professionals are dedicated to achieving the strongest, most consistent investment performance over the long term .

Jarislowsky Fraser Limited is a Canadian investment counselling firm . The company was founded in 1955 and has offices in Montreal, Toronto and Calgary . They manage diversified portfolios as well as bond, Canadian equity and foreign equity portfolios .

Jarislowsky Fraser Limited is a long-time leader in the management of pension funds and endowment funds . Most of its institutional clients are corporations, governments and Canadian endowments . Funds are managed according to a growth at a reasonable price (GARP) approach, and aim to protect the existing capital and achieve long-term growth . The management of absolute risk is a characteristic of Jarislowsky Fraser’s investment approach . The reference index is not an important concern when constructing portfolios .


Our Investment Advisors (continued)

- 17 -


Montrusco Bolton Investments Inc. is a private company held by the firm’s key employees and two strategic partners, Affiliated Managers Group Inc . and the Solidarity Fund QFL .

Through its offices across Canada, Montrusco Bolton provides money management services to a diverse group of clients, including pension funds, mutual funds, endowments and foundations, and private clients .

To meet the investment objectives of its diverse clientele, Montrusco Bolton has assembled a dedicated team of professionals that have the integrity, talent and imagination to provide their clients with superior performance .

Founded in Vancouver in 1964, Phillips, Hager & North is one of Canada’s oldest investment management firms . PH&N is a part of the RBC family . As part of RBC Global Asset Management, they are continuing their traditions, while evolving in tandem with their clients’ increasingly sophisticated needs . PH&N manages money for private clients, non-profit organizations and institutional investors (primarily pension plans) . PH&N follows a disciplined and conservative approach to investing with a clear focus on the long term . With over forty years of investment management experience, PH&N has in place a firm set of values and principles and their disciplines have stood the test of many market cycles .

Lazard Asset Management is known for its global perspective on investing and years of experience with global, regional and domestic portfolios . With more than 250 investment personnel worldwide, Lazard offers investors of all types an array of equity, fixed income, and alternative investment solutions from their network of local offices in ten different countries . Lazard’s team-based approach to portfolio management helps them to deliver robust and consistent performance over time, and strong client relationships allow Lazard to understand how to employ their capabilities to their clients’ advantage .

Founded in Calgary in 1974, Mawer Investment Management Ltd. (Mawer) is an independent investment counseling firm with a team of over 100 people .

The firm employs a disciplined, research-driven process and long-term view in the management of global portfolios . Value-added returns are achieved through prudent security selection and portfolio mix based on bottom-up, fundamental analysis . Consistent returns are achieved through a team process which benefits from the breadth and depth of all investment specialists .

Mawer presents a proven investment style over long measurement periods, however, their style does not fit easily into either a growth or value category . They do not consider themselves value investors because they look for companies with strong and improving business fundamentals . Nor do they see themselves as growth investors because they are not exclusively looking for companies with high earnings growth . Their style is best described as “quality at the right price .”

Mawer has an enviable reputation throughout Canada for professionalism, integrity, continuity of management and a highly disciplined approach to investment management .

MFS Investment Management (MFS) offers its services to investors in more than 75 countries through offices in nine major financial centres—Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Toronto and Tokyo . MFS applies a uniquely collaborative approach to build better insight for its clients based on three guiding principles: integrated research, global collaboration and active risk management . MFS analyzes worldwide investment opportunities from fundamental, quantitative and credit perspectives . Its team and compensation structure ensures collaboration across the organization . Actively managing risk is the responsibility of each member of the MFS investment team and drives its decisions and results .

PIMCO is an active fixed income manager dedicated to serving the specific goals and unique needs of Canadian bond investors . PIMCO, one of the largest asset management firms in the world, has been managing Canadian fixed income for Canadian clients since 1998 .

PIMCO offers a unique combination of local expertise, global resources, comprehensive fixed income skills and a conservative, value-oriented investment philosophy . Their goal is to outperform client benchmarks (such as the FTSE TMX Canada Universe and FTSE TMX Canada Long) consistently over the long term through an investment approach that combines top-down fundamental analysis of the Canadian and global economies, and proprietary bottom-up credit research of individual bond .

PIMCO offers Canadian clients their best investment ideas from around the world by employing PIMCO global research capabilities and a long history of experience and innovation in new financial products and market sectors .



- 18 -


Triasima Portfolio Management is a Canadian investment management firm founded by partners André R . Chabot, Scott Collins and Redouane Khireddine . With a successful track record since 1998, the firm serves a select group of more than 200 institutional, sub-advisory and individual clients . Today, Triasima has close to $3 billion in assets under management . It is wholly owned by its employees and directors, and is completely independent from any other company or organization .

Sprucegrove Investment Management Ltd. is a small, totally independent and focused global equities specialist based in Toronto, Canada . Sprucegrove’s objective is to provide clients with above-average investment performance and superior service over the long term .

The Sprucegrove strategy employs a value approach to the management of equities . It emphasizes long term investment and it focuses on the selection of individual common stocks using a bottom-up, research driven approach . Country and sector exposures are a residual of this stock selection process . It is the Sprucegrove belief that each investment must be based on thorough internal research, must offer safety of capital, and must promise a satisfactory long-term rate of return . Portfolio holdings must meet Sprucegrove’s standards of investment quality including a leadership position, a history of above average financial performance, a secure financial position, reputable management, and a growth opportunity in terms of sales, earnings, and share price . The Sprucegrove valuation criteria include: normalized price earnings multiple, price to book value and dividend yield .

QV Investors Inc. (QV) is a Calgary-based portfolio management firm that manages balanced, Canadian equity, and fixed income portfolios for individuals, not-for-profit organizations, and institutional investors . QV is an employee-owned independent investment management firm . Founded in 1996, QV has worked to provide consistent investment results . Their philosophy is in their name – selecting investments of Quality, Value, and growth to build diversified, low risk portfolios .

Pyramis Global Advisors, a Fidelity Investments company, is an investment management firm focused on serving institutional investors including corporate and public retirement funds, endowments, foundations, and other institutions, as well as international investors . Fidelity Investments Canada ULC is proud to distribute Pyramis Global Advisors products and services, including actively managed Canadian equity, U .S . equity, international and global equity, fixed-income, asset allocation and alternative strategies .

TD Asset Management (TDAM) is a highly diversified North American investment management firm with leading market positions in active, quantitative and passive portfolio management . Over a period of more than two decades TDAM has developed a base of skills that span not only the traditional and alternative investment capabilities, but also the increasingly important areas of compliance, governance and comprehensive risk management capabilities .

As part of the TD Bank Financial Group, TDAM is able to draw on the strengths and resources of one of the largest North American financial institutions, striving to deliver value for its clients, every day .

Franklin Templeton Investments Corp. is a Canadian investment management company . Franklin Templeton Investments Corp. is an organization with offices worldwide and a leader in the management of international investments . Franklin Templeton Investments Corp. believes the best way to truly benefit from the long-term advantages offered by equity investments is to make the most of international geographic diversification .

The equity funds managed by Templeton are managed according to an investment methodology that focuses on value and patience . This is done through rigorous fundamental analysis of a company’s business to determine its economic worth based on projected futures earnings or asset value potential .



- 19 -


UBS is committed to providing private, institutional and corporate clients worldwide, as well as retail banking clients in Switzerland, with superior financial advice and solutions while generating attractive and sustainable returns for shareholders . Its strategy centers on its Wealth Management and Wealth Management Americas divisions and its leading universal bank in Switzerland, complemented by its Global Asset Management division and Investment Bank . These divisions share three key characteristics: they benefit from a strong competitive position in their target markets, are capital-efficient, and offer a superior structural growth and profitability outlook . Capital strength is the foundation of its success .



- 20 -


ATTITUDE Portfolios


ATTITUDE Portfolios represent the pre-built solution that evolves according to the investor’s life cycle AND risk profile, two key elements in retirement planning .

Their main feature lies in the dynamic asset evolution over time . ATTITUDE Portfolios automatically adjust on a quarterly basis, to optimize investment growth potential while respecting the degree of risk associated with the investment horizon and the member’s investment profile . The asset allocation becomes more conservative as the investor nears his retirement target date .

ATTITUDE Portfolios target a higher long-term return while minimizing risk through investment diversity and the integration of several portfolio managers . The portfolios are composed of four income funds, five Canadian equity funds, six foreign funds and three alternative/specialty funds .

As the target retirement period approaches, the asset allocation automatically changes every three months, to become less risky . This adjustment decreases the allocation towards Canadian and foreign equities in favour of income funds . This method helps to reduce risks related to market fluctuations . The quarterly evolution of the portfolios’ composition continues for ten years after retirement . The purpose of this is to limit risk into retirement while allowing the portfolios to continue to perform and generate earnings .

The following pages present the detailed target and current composition by asset class and fund for each ATTITUDE Portfolio . This publication also presents the portfolio returns for each ATTITUDE Portfolio .


ATTITUDE Portfolios

- 22 -


TARGET composition of ATTITUDE Portfolios at inception* (in %)

Inve

stor

pro

file

Target retirement periodsBefore retirement After retirement

2061 - 2065 2056 - 2060 2051 - 2055 2046 - 2050 2041 - 2045 2036 - 2040 2031 - 2035 2026 - 2030 2021 - 2025 2016 - 2020 2011 - 2015 2006 - 2010 2005 and -

CONSERVATIVE Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 6 .75 11 .25 16 .40 20 .88 21 .25020 - Bond 20 .23 20 .23 20 .23 20 .56 22 .16 23 .99 26 .39 29 .68 30 .38 32 .69 34 .20 32 .55 33 .25860 - Core Plus Bond (PIMCO) 13 .50 13 .50 13 .50 13 .73 14 .77 16 .00 17 .60 19 .80 20 .25 21 .80 22 .80 21 .71 22 .19893 - Global Fixed Income (PIMCO) 11 .25 11 .25 11 .25 10 .69 10 .57 10 .00 11 .00 10 .50 10 .13 9 .26 8 .61 8 .35 8 .29Total - Income Funds 44.98 44.98 44.98 44.98 47.50 49.99 54.99 59.98 67.51 75.00 82.01 83.49 84.98160 - Dividend 7 .22 7 .22 7 .22 7 .22 6 .89 6 .56 5 .91 5 .25 4 .26 3 .28 2 .36 2 .17 1 .97871 - Canadian Focused Equity (Pyramis) 7 .22 7 .22 7 .22 7 .22 6 .89 6 .56 5 .91 5 .25 4 .27 3 .28 2 .36 2 .17 1 .97888 - Canadian Equity Low Volatility (TD) 2 .41 2 .41 2 .41 2 .41 2 .30 2 .19 1 .97 1 .75 2 .13 2 .19 1 .97 2 .17 1 .97464 - Canadian Equity Growth 4 .81 4 .81 4 .81 4 .81 4 .59 4 .38 3 .94 3 .50 2 .13 1 .09 0 .39 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 2 .41 2 .41 2 .41 2 .41 2 .30 2 .19 1 .97 1 .75 1 .42 1 .09 0 .79 0 .72 0 .66Total - Canadian Equity Funds 24.07 24.07 24.07 24.07 22.97 21.88 19.70 17.50 14.21 10.93 7.87 7.23 6.57876 - Global Equity Index ACWI (BlackRock) 6 .02 6 .02 6 .02 6 .02 5 .74 5 .47 4 .92 4 .38 3 .56 2 .73 1 .97 1 .81 1 .64500 - Global Equity (Hexavest) 6 .02 6 .02 6 .02 6 .26 6 .20 6 .13 5 .71 5 .25 4 .41 3 .50 2 .60 2 .45 2 .30465 - Global Equity (Templeton) 7 .22 7 .22 7 .22 6 .98 6 .43 5 .91 5 .12 4 .38 3 .41 2 .52 1 .73 1 .52 1 .31531 - Global Equity Small Cap (Deutsche AWM) 1 .20 1 .20 1 .20 1 .20 1 .15 1 .09 0 .98 0 .88 0 .71 0 .55 0 .39 0 .36 0 .33130 - Global Equity Small Cap (Mawer) 1 .20 1 .20 1 .20 1 .20 1 .15 1 .09 0 .98 0 .88 0 .71 0 .55 0 .39 0 .36 0 .33122 - Emerging Markets (Aberdeen) 2 .41 2 .41 2 .41 2 .41 2 .30 2 .19 1 .97 1 .75 1 .42 1 .09 0 .79 0 .72 0 .66Total - Foreign Equity Funds 24.07 24.07 24.07 24.07 22.97 21.88 19.68 17.52 14.22 10.94 7.87 7.22 6.57491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .50 0 .81 0 .94 0 .90 1 .03 0 .94757 - Global Infrastructure (Lazard) 1 .72 1 .72 1 .72 1 .72 1 .64 1 .56 1 .41 1 .00 0 .61 0 .31 0 .11 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 5 .16 5 .16 5 .16 5 .16 4 .92 4 .69 4 .22 3 .50 2 .64 1 .88 1 .24 1 .03 0 .94Total - Alternative/Specialty Funds 6.88 6.88 6.88 6.88 6.56 6.25 5.63 5.00 4.06 3.13 2.25 2.06 1.88

MODERATE Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 5 .63 9 .75 14 .70 18 .88 19 .38020 - Bond 14 .62 14 .62 14 .62 14 .87 16 .34 18 .00 20 .37 23 .51 25 .31 28 .33 30 .63 29 .43 30 .33860 - Core Plus Bond (PIMCO) 9 .75 9 .75 9 .75 9 .91 10 .89 12 .00 13 .60 15 .68 16 .88 18 .89 20 .43 19 .63 20 .23893 - Global Fixed Income (PIMCO) 8 .13 8 .13 8 .13 7 .72 7 .79 7 .50 8 .50 8 .31 8 .44 8 .03 7 .72 7 .55 7 .56Total - Income Funds 32.50 32.50 32.50 32.50 35.02 37.50 42.47 47.50 56.26 65.00 73.48 75.49 77.50160 - Dividend 8 .86 8 .86 8 .86 8 .86 8 .53 8 .21 7 .55 6 .89 5 .74 4 .59 3 .48 3 .22 2 .96871 - Canadian Focused Equity (Pyramis) 8 .86 8 .86 8 .86 8 .86 8 .53 8 .20 7 .55 6 .89 5 .74 4 .59 3 .48 3 .22 2 .95888 - Canadian Equity Low Volatility (TD) 2 .95 2 .95 2 .95 2 .95 2 .84 2 .73 2 .52 2 .30 2 .87 3 .06 2 .90 3 .22 2 .95464 - Canadian Equity Growth 5 .91 5 .91 5 .91 5 .91 5 .69 5 .47 5 .03 4 .59 2 .87 1 .53 0 .58 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 2 .95 2 .95 2 .95 2 .95 2 .84 2 .73 2 .52 2 .30 1 .91 1 .53 1 .16 1 .07 0 .98Total - Canadian Equity Funds 29.53 29.53 29.53 29.53 28.43 27.34 25.17 22.97 19.13 15.30 11.60 10.73 9.84876 - Global Equity Index ACWI (BlackRock) 7 .38 7 .38 7 .38 7 .38 7 .11 6 .84 6 .29 5 .74 4 .79 3 .83 2 .90 2 .68 2 .46500 - Global Equity (Hexavest) 7 .38 7 .38 7 .38 7 .68 7 .68 7 .66 7 .30 6 .89 5 .93 4 .90 3 .83 3 .64 3 .45465 - Global Equity (Templeton) 8 .86 8 .86 8 .86 8 .56 7 .96 7 .38 6 .54 5 .74 4 .59 3 .52 2 .55 2 .25 1 .97531 - Global Equity Small Cap (Deutsche AWM) 1 .48 1 .48 1 .48 1 .48 1 .42 1 .37 1 .26 1 .15 0 .96 0 .77 0 .58 0 .54 0 .49130 - Global Equity Small Cap (Mawer) 1 .48 1 .48 1 .48 1 .48 1 .42 1 .37 1 .26 1 .15 0 .96 0 .77 0 .58 0 .54 0 .49122 - Emerging Markets (Aberdeen) 2 .95 2 .95 2 .95 2 .95 2 .84 2 .73 2 .52 2 .30 1 .91 1 .53 1 .16 1 .07 0 .98Total - Foreign Equity Funds 29.53 29.53 29.53 29.53 28.43 27.35 25.17 22.97 19.14 15.32 11.60 10.72 9.84491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .66 1 .09 1 .31 1 .33 1 .53 1 .41757 - Global Infrastructure (Lazard) 2 .11 2 .11 2 .11 2 .11 2 .03 1 .95 1 .80 1 .31 0 .82 0 .44 0 .17 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 6 .33 6 .33 6 .33 6 .33 6 .09 5 .86 5 .39 4 .59 3 .56 2 .63 1 .82 1 .53 1 .41Total - Alternative/Specialty Funds 8.44 8.44 8.44 8.44 8.12 7.81 7.19 6.56 5.47 4.38 3.32 3.06 2.82

BALANCED Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 4 .50 8 .25 13 .00 16 .88 17 .50020 - Bond 9 .00 9 .00 9 .00 9 .15 10 .48 12 .02 14 .40 17 .33 20 .23 23 .98 27 .09 26 .31 27 .38860 - Core Plus Bond (PIMCO) 6 .00 6 .00 6 .00 6 .10 7 .00 8 .00 9 .60 11 .55 13 .50 15 .98 18 .07 17 .55 18 .27893 - Global Fixed Income (PIMCO) 5 .00 5 .00 5 .00 4 .75 5 .01 5 .00 6 .00 6 .13 6 .75 6 .79 6 .83 6 .75 6 .83Total - Income Funds 20.00 20.00 20.00 20.00 22.49 25.02 30.00 35.01 44.98 55.00 64.99 67.49 69.98160 - Dividend 10 .50 10 .50 10 .50 10 .50 10 .17 9 .84 9 .19 8 .53 7 .22 5 .90 4 .59 4 .27 3 .94871 - Canadian Focused Equity (Pyramis) 10 .50 10 .50 10 .50 10 .50 10 .17 9 .84 9 .19 8 .53 7 .22 5 .91 4 .59 4 .27 3 .94888 - Canadian Equity Low Volatility (TD) 3 .50 3 .50 3 .50 3 .50 3 .39 3 .28 3 .06 2 .84 3 .61 3 .94 3 .83 4 .27 3 .94464 - Canadian Equity Growth 7 .00 7 .00 7 .00 7 .00 6 .78 6 .56 6 .13 5 .69 3 .61 1 .97 0 .77 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 3 .50 3 .50 3 .50 3 .50 3 .39 3 .28 3 .06 2 .84 2 .41 1 .97 1 .53 1 .42 1 .31Total - Canadian Equity Funds 35.00 35.00 35.00 35.00 33.90 32.80 30.63 28.43 24.07 19.69 15.31 14.23 13.13876 - Global Equity Index ACWI (BlackRock) 8 .75 8 .75 8 .75 8 .75 8 .48 8 .20 7 .66 7 .11 6 .02 4 .92 3 .83 3 .56 3 .28500 - Global Equity (Hexavest) 8 .75 8 .75 8 .75 9 .10 9 .16 9 .19 8 .88 8 .53 7 .46 6 .30 5 .05 4 .83 4 .59465 - Global Equity (Templeton) 10 .50 10 .50 10 .50 10 .15 9 .49 8 .86 7 .96 7 .11 5 .78 4 .53 3 .37 2 .99 2 .63531 - Global Equity Small Cap (Deutsche AWM) 1 .75 1 .75 1 .75 1 .75 1 .70 1 .64 1 .53 1 .42 1 .20 0 .98 0 .77 0 .71 0 .66130 - Global Equity Small Cap (Mawer) 1 .75 1 .75 1 .75 1 .75 1 .70 1 .64 1 .53 1 .42 1 .20 0 .98 0 .77 0 .71 0 .66122 - Emerging Markets (Aberdeen) 3 .50 3 .50 3 .50 3 .50 3 .39 3 .28 3 .06 2 .84 2 .41 1 .97 1 .53 1 .42 1 .31Total - Foreign Equity Funds 35.00 35.00 35.00 35.00 33.92 32.81 30.62 28.43 24.07 19.68 15.32 14.22 13.13491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .81 1 .38 1 .69 1 .75 2 .03 1 .88757 - Global Infrastructure (Lazard) 2 .50 2 .50 2 .50 2 .50 2 .42 2 .34 2 .19 1 .63 1 .03 0 .56 0 .22 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 7 .50 7 .50 7 .50 7 .50 7 .27 7 .03 6 .56 5 .69 4 .47 3 .38 2 .41 2 .03 1 .88Total - Alternative/Specialty Funds 10.00 10.00 10.00 10.00 9.69 9.37 8.75 8.13 6.88 5.63 4.38 4.06 3.76

- 23 -


TARGET composition of ATTITUDE Portfolios at inception* (in %) (continued)

Inve

stor

pro

file


2061 - 2065 2056 - 2060 2051 - 2055 2046 - 2050 2041 - 2045 2036 - 2040 2031 - 2035 2026 - 2030 2021 - 2025 2016 - 2020 2011 - 2015 2006 - 2010 2005 and -

GROWTH Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 3 .80 7 .28 11 .80 15 .50 16 .25020 - Bond 5 .63 5 .63 5 .63 5 .73 6 .98 8 .38 10 .79 13 .61 17 .09 21 .15 24 .60 24 .17 25 .44860 - Core Plus Bond (PIMCO) 3 .75 3 .75 3 .75 3 .81 4 .67 5 .60 7 .20 9 .08 11 .40 14 .09 16 .40 16 .12 16 .97893 - Global Fixed Income (PIMCO) 3 .13 3 .13 3 .13 2 .97 3 .34 3 .50 4 .50 4 .81 5 .70 5 .99 6 .20 6 .20 6 .34Total - Income Funds 12.51 12.51 12.51 12.51 14.99 17.48 22.49 27.50 37.99 48.51 59.00 61.99 65.00160 - Dividend 11 .49 11 .49 11 .49 11 .49 11 .15 10 .83 10 .17 9 .51 8 .14 6 .76 5 .38 4 .99 4 .59871 - Canadian Focused Equity (Pyramis) 11 .48 11 .48 11 .48 11 .48 11 .16 10 .83 10 .17 9 .52 8 .14 6 .76 5 .38 4 .99 4 .59888 - Canadian Equity Low Volatility (TD) 3 .83 3 .83 3 .83 3 .83 3 .72 3 .61 3 .39 3 .17 4 .07 4 .51 4 .48 4 .99 4 .59464 - Canadian Equity Growth 7 .66 7 .66 7 .66 7 .66 7 .44 7 .22 6 .78 6 .34 4 .07 2 .25 0 .90 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 3 .83 3 .83 3 .83 3 .83 3 .72 3 .61 3 .39 3 .17 2 .71 2 .25 1 .79 1 .66 1 .53Total - Canadian Equity Funds 38.29 38.29 38.29 38.29 37.19 36.10 33.90 31.71 27.13 22.53 17.93 16.63 15.30876 - Global Equity Index ACWI (BlackRock) 9 .57 9 .57 9 .57 9 .57 9 .30 9 .02 8 .48 7 .93 6 .78 5 .63 4 .48 4 .16 3 .83500 - Global Equity (Hexavest) 9 .57 9 .57 9 .57 9 .95 10 .04 10 .11 9 .83 9 .52 8 .41 7 .21 5 .92 5 .65 5 .36465 - Global Equity (Templeton) 11 .48 11 .48 11 .48 11 .10 10 .41 9 .75 8 .82 7 .93 6 .51 5 .18 3 .95 3 .49 3 .06531 - Global Equity Small Cap (Deutsche AWM) 1 .91 1 .91 1 .91 1 .91 1 .86 1 .81 1 .70 1 .59 1 .36 1 .13 0 .90 0 .83 0 .77130 - Global Equity Small Cap (Mawer) 1 .91 1 .91 1 .91 1 .91 1 .86 1 .81 1 .70 1 .59 1 .36 1 .13 0 .90 0 .83 0 .77122 - Emerging Markets (Aberdeen) 3 .83 3 .83 3 .83 3 .83 3 .72 3 .61 3 .39 3 .17 2 .71 2 .25 1 .79 1 .66 1 .53Total - Foreign Equity Funds 38.27 38.27 38.27 38.27 37.19 36.11 33.92 31.73 27.13 22.53 17.94 16.62 15.32491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .91 1 .55 1 .93 2 .05 2 .38 2 .19757 - Global Infrastructure (Lazard) 2 .73 2 .73 2 .73 2 .73 2 .66 2 .58 2 .42 1 .81 1 .16 0 .64 0 .26 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 8 .20 8 .20 8 .20 8 .20 7 .97 7 .73 7 .27 6 .34 5 .04 3 .86 2 .82 2 .38 2 .19Total - Alternative/Specialty Funds 10.93 10.93 10.93 10.93 10.63 10.31 9.69 9.06 7.75 6.43 5.13 4.76 4.38

AGGRESSIVE Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 3 .10 6 .30 10 .60 14 .13 15 .00020 - Bond 2 .23 2 .23 2 .23 2 .26 3 .50 4 .79 7 .18 9 .90 13 .92 18 .28 22 .09 22 .03 23 .47860 - Core Plus Bond (PIMCO) 1 .50 1 .50 1 .50 1 .53 2 .33 3 .20 4 .80 6 .60 9 .30 12 .21 14 .73 14 .69 15 .66893 - Global Fixed Income (PIMCO) 1 .25 1 .25 1 .25 1 .19 1 .67 2 .00 3 .00 3 .50 4 .65 5 .19 5 .57 5 .65 5 .85Total - Income Funds 4.98 4.98 4.98 4.98 7.50 9.99 14.98 20.00 30.97 41.98 52.99 56.50 59.98160 - Dividend 12 .47 12 .47 12 .47 12 .47 12 .14 11 .81 11 .16 10 .50 9 .06 7 .61 6 .17 5 .71 5 .25871 - Canadian Focused Equity (Pyramis) 12 .47 12 .47 12 .47 12 .47 12 .14 11 .81 11 .16 10 .50 9 .06 7 .61 6 .17 5 .71 5 .25888 - Canadian Equity Low Volatility (TD) 4 .16 4 .16 4 .16 4 .16 4 .05 3 .94 3 .72 3 .50 4 .53 5 .08 5 .14 5 .71 5 .25464 - Canadian Equity Growth 8 .31 8 .31 8 .31 8 .31 8 .09 7 .88 7 .44 7 .00 4 .53 2 .54 1 .03 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 4 .16 4 .16 4 .16 4 .16 4 .05 3 .94 3 .72 3 .50 3 .02 2 .54 2 .06 1 .90 1 .75Total - Canadian Equity Funds 41.57 41.57 41.57 41.57 40.47 39.38 37.20 35.00 30.20 25.38 20.57 19.03 17.50876 - Global Equity Index ACWI (BlackRock) 10 .39 10 .39 10 .39 10 .39 10 .12 9 .84 9 .30 8 .75 7 .55 6 .34 5 .14 4 .76 4 .38500 - Global Equity (Hexavest) 10 .39 10 .39 10 .39 10 .81 10 .93 11 .03 10 .78 10 .50 9 .36 8 .12 6 .79 6 .47 6 .13465 - Global Equity (Templeton) 12 .47 12 .47 12 .47 12 .05 11 .33 10 .63 9 .67 8 .75 7 .25 5 .84 4 .52 4 .00 3 .50531 - Global Equity Small Cap (Deutsche AWM) 2 .08 2 .08 2 .08 2 .08 2 .02 1 .97 1 .86 1 .75 1 .51 1 .27 1 .03 0 .95 0 .88130 - Global Equity Small Cap (Mawer) 2 .08 2 .08 2 .08 2 .08 2 .02 1 .97 1 .86 1 .75 1 .51 1 .27 1 .03 0 .95 0 .88122 - Emerging Markets (Aberdeen) 4 .16 4 .16 4 .16 4 .16 4 .05 3 .94 3 .72 3 .50 3 .02 2 .54 2 .06 1 .90 1 .75Total - Foreign Equity Funds 41.57 41.57 41.57 41.57 40.47 39.38 37.19 35.00 30.20 25.38 20.57 19.03 17.52491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 1 .00 1 .73 2 .18 2 .35 2 .72 2 .50757 - Global Infrastructure (Lazard) 2 .97 2 .97 2 .97 2 .97 2 .89 2 .81 2 .66 2 .00 1 .29 0 .73 0 .29 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 8 .91 8 .91 8 .91 8 .91 8 .67 8 .44 7 .97 7 .00 5 .61 4 .35 3 .23 2 .72 2 .50Total - Alternative/Specialty Funds 11.88 11.88 11.88 11.88 11.56 11.25 10.63 10.00 8.63 7.26 5.87 5.44 5.00

* The asset allocations shown are as at December 31, 2015 .

- 24 -


Composition of ATTITUDE Portfolios (in %)

Inve

stor

pro

file


2061 - 2065 2056 - 2060 2051 - 2055 2046 - 2050 2041 - 2045 2036 - 2040 2031 - 2035 2026 - 2030 2021 - 2025 2016 - 2020 2011 - 2015 2006 - 2010 2005 and -

CONSERVATIVE Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 6 .75 11 .25 16 .40 20 .88 21 .25020 - Bond 20 .23 20 .23 20 .23 20 .56 22 .16 23 .99 26 .39 29 .68 30 .38 32 .69 34 .20 32 .55 33 .25860 - Core Plus Bond (PIMCO) 13 .50 13 .50 13 .50 13 .73 14 .77 16 .00 17 .60 19 .80 20 .25 21 .80 22 .80 21 .71 22 .19893 - Global Fixed Income (PIMCO) 11 .25 11 .25 11 .25 10 .69 10 .57 10 .00 11 .00 10 .50 10 .13 9 .26 8 .61 8 .35 8 .29Total - Income Funds 44.98 44.98 44.98 44.98 47.50 49.99 54.99 59.98 67.51 75.00 82.01 83.49 84.98160 - Dividend 7 .22 7 .22 7 .22 7 .22 6 .89 6 .56 5 .91 5 .25 4 .26 3 .28 2 .36 2 .17 1 .97871 - Canadian Focused Equity (Pyramis) 7 .22 7 .22 7 .22 7 .22 6 .89 6 .56 5 .91 5 .25 4 .27 3 .28 2 .36 2 .17 1 .97888 - Canadian Equity Low Volatility (TD) 2 .41 2 .41 2 .41 2 .41 2 .30 2 .19 1 .97 1 .75 2 .13 2 .19 1 .97 2 .17 1 .97464 - Canadian Equity Growth 4 .81 4 .81 4 .81 4 .81 4 .59 4 .38 3 .94 3 .50 2 .13 1 .09 0 .39 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 2 .41 2 .41 2 .41 2 .41 2 .30 2 .19 1 .97 1 .75 1 .42 1 .09 0 .79 0 .72 0 .66Total - Canadian Equity Funds 24.07 24.07 24.07 24.07 22.97 21.88 19.70 17.50 14.21 10.93 7.87 7.23 6.57876 - Global Equity Index ACWI (BlackRock) 6 .02 6 .02 6 .02 6 .02 5 .74 5 .47 4 .92 4 .38 3 .56 2 .73 1 .97 1 .81 1 .64500 - Global Equity (Hexavest) 6 .02 6 .02 6 .02 6 .26 6 .20 6 .13 5 .71 5 .25 4 .41 3 .50 2 .60 2 .45 2 .30465 - Global Equity (Templeton) 7 .22 7 .22 7 .22 6 .98 6 .43 5 .91 5 .12 4 .38 3 .41 2 .52 1 .73 1 .52 1 .31531 - Global Equity Small Cap (Deutsche AWM) 1 .20 1 .20 1 .20 1 .20 1 .15 1 .09 0 .98 0 .88 0 .71 0 .55 0 .39 0 .36 0 .33130 - Global Equity Small Cap (Mawer) 1 .20 1 .20 1 .20 1 .20 1 .15 1 .09 0 .98 0 .88 0 .71 0 .55 0 .39 0 .36 0 .33122 - Emerging Markets (Aberdeen) 2 .41 2 .41 2 .41 2 .41 2 .30 2 .19 1 .97 1 .75 1 .42 1 .09 0 .79 0 .72 0 .66Total - Foreign Equity Funds 24.07 24.07 24.07 24.07 22.97 21.88 19.68 17.52 14.22 10.94 7.87 7.22 6.57491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .50 0 .81 0 .94 0 .90 1 .03 0 .94757 - Global Infrastructure (Lazard) 1 .72 1 .72 1 .72 1 .72 1 .64 1 .56 1 .41 1 .00 0 .61 0 .31 0 .11 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 5 .16 5 .16 5 .16 5 .16 4 .92 4 .69 4 .22 3 .50 2 .64 1 .88 1 .24 1 .03 0 .94Total - Alternative/Specialty Funds 6.88 6.88 6.88 6.88 6.56 6.25 5.63 5.00 4.06 3.13 2.25 2.06 1.88

MODERATE Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 5 .63 9 .75 14 .70 18 .88 19 .38020 - Bond 14 .62 14 .62 14 .62 14 .87 16 .34 18 .00 20 .37 23 .51 25 .31 28 .33 30 .63 29 .43 30 .33860 - Core Plus Bond (PIMCO) 9 .75 9 .75 9 .75 9 .91 10 .89 12 .00 13 .60 15 .68 16 .88 18 .89 20 .43 19 .63 20 .23893 - Global Fixed Income (PIMCO) 8 .13 8 .13 8 .13 7 .72 7 .79 7 .50 8 .50 8 .31 8 .44 8 .03 7 .72 7 .55 7 .56Total - Income Funds 32.50 32.50 32.50 32.50 35.02 37.50 42.47 47.50 56.26 65.00 73.48 75.49 77.50160 - Dividend 8 .86 8 .86 8 .86 8 .86 8 .53 8 .21 7 .55 6 .89 5 .74 4 .59 3 .48 3 .22 2 .96871 - Canadian Focused Equity (Pyramis) 8 .86 8 .86 8 .86 8 .86 8 .53 8 .20 7 .55 6 .89 5 .74 4 .59 3 .48 3 .22 2 .95888 - Canadian Equity Low Volatility (TD) 2 .95 2 .95 2 .95 2 .95 2 .84 2 .73 2 .52 2 .30 2 .87 3 .06 2 .90 3 .22 2 .95464 - Canadian Equity Growth 5 .91 5 .91 5 .91 5 .91 5 .69 5 .47 5 .03 4 .59 2 .87 1 .53 0 .58 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 2 .95 2 .95 2 .95 2 .95 2 .84 2 .73 2 .52 2 .30 1 .91 1 .53 1 .16 1 .07 0 .98Total - Canadian Equity Funds 29.53 29.53 29.53 29.53 28.43 27.34 25.17 22.97 19.13 15.30 11.60 10.73 9.84876 - Global Equity Index ACWI (BlackRock) 7 .38 7 .38 7 .38 7 .38 7 .11 6 .84 6 .29 5 .74 4 .79 3 .83 2 .90 2 .68 2 .46500 - Global Equity (Hexavest) 7 .38 7 .38 7 .38 7 .68 7 .68 7 .66 7 .30 6 .89 5 .93 4 .90 3 .83 3 .64 3 .45465 - Global Equity (Templeton) 8 .86 8 .86 8 .86 8 .56 7 .96 7 .38 6 .54 5 .74 4 .59 3 .52 2 .55 2 .25 1 .97531 - Global Equity Small Cap (Deutsche AWM) 1 .48 1 .48 1 .48 1 .48 1 .42 1 .37 1 .26 1 .15 0 .96 0 .77 0 .58 0 .54 0 .49130 - Global Equity Small Cap (Mawer) 1 .48 1 .48 1 .48 1 .48 1 .42 1 .37 1 .26 1 .15 0 .96 0 .77 0 .58 0 .54 0 .49122 - Emerging Markets (Aberdeen) 2 .95 2 .95 2 .95 2 .95 2 .84 2 .73 2 .52 2 .30 1 .91 1 .53 1 .16 1 .07 0 .98Total - Foreign Equity Funds 29.53 29.53 29.53 29.53 28.43 27.35 25.17 22.97 19.14 15.32 11.60 10.72 9.84491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .66 1 .09 1 .31 1 .33 1 .53 1 .41757 - Global Infrastructure (Lazard) 2 .11 2 .11 2 .11 2 .11 2 .03 1 .95 1 .80 1 .31 0 .82 0 .44 0 .17 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 6 .33 6 .33 6 .33 6 .33 6 .09 5 .86 5 .39 4 .59 3 .56 2 .63 1 .82 1 .53 1 .41Total - Alternative/Specialty Funds 8.44 8.44 8.44 8.44 8.12 7.81 7.19 6.56 5.47 4.38 3.32 3.06 2.82

BALANCED Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 4 .50 8 .25 13 .00 16 .88 17 .50020 - Bond 9 .00 9 .00 9 .00 9 .15 10 .48 12 .02 14 .40 17 .33 20 .23 23 .98 27 .09 26 .31 27 .38860 - Core Plus Bond (PIMCO) 6 .00 6 .00 6 .00 6 .10 7 .00 8 .00 9 .60 11 .55 13 .50 15 .98 18 .07 17 .55 18 .27893 - Global Fixed Income (PIMCO) 5 .00 5 .00 5 .00 4 .75 5 .01 5 .00 6 .00 6 .13 6 .75 6 .79 6 .83 6 .75 6 .83Total - Income Funds 20.00 20.00 20.00 20.00 22.49 25.02 30.00 35.01 44.98 55.00 64.99 67.49 69.98160 - Dividend 10 .50 10 .50 10 .50 10 .50 10 .17 9 .84 9 .19 8 .53 7 .22 5 .90 4 .59 4 .27 3 .94871 - Canadian Focused Equity (Pyramis) 10 .50 10 .50 10 .50 10 .50 10 .17 9 .84 9 .19 8 .53 7 .22 5 .91 4 .59 4 .27 3 .94888 - Canadian Equity Low Volatility (TD) 3 .50 3 .50 3 .50 3 .50 3 .39 3 .28 3 .06 2 .84 3 .61 3 .94 3 .83 4 .27 3 .94464 - Canadian Equity Growth 7 .00 7 .00 7 .00 7 .00 6 .78 6 .56 6 .13 5 .69 3 .61 1 .97 0 .77 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 3 .50 3 .50 3 .50 3 .50 3 .39 3 .28 3 .06 2 .84 2 .41 1 .97 1 .53 1 .42 1 .31Total - Canadian Equity Funds 35.00 35.00 35.00 35.00 33.90 32.80 30.63 28.43 24.07 19.69 15.31 14.23 13.13876 - Global Equity Index ACWI (BlackRock) 8 .75 8 .75 8 .75 8 .75 8 .48 8 .20 7 .66 7 .11 6 .02 4 .92 3 .83 3 .56 3 .28500 - Global Equity (Hexavest) 8 .75 8 .75 8 .75 9 .10 9 .16 9 .19 8 .88 8 .53 7 .46 6 .30 5 .05 4 .83 4 .59465 - Global Equity (Templeton) 10 .50 10 .50 10 .50 10 .15 9 .49 8 .86 7 .96 7 .11 5 .78 4 .53 3 .37 2 .99 2 .63531 - Global Equity Small Cap (Deutsche AWM) 1 .75 1 .75 1 .75 1 .75 1 .70 1 .64 1 .53 1 .42 1 .20 0 .98 0 .77 0 .71 0 .66130 - Global Equity Small Cap (Mawer) 1 .75 1 .75 1 .75 1 .75 1 .70 1 .64 1 .53 1 .42 1 .20 0 .98 0 .77 0 .71 0 .66122 - Emerging Markets (Aberdeen) 3 .50 3 .50 3 .50 3 .50 3 .39 3 .28 3 .06 2 .84 2 .41 1 .97 1 .53 1 .42 1 .31Total - Foreign Equity Funds 35.00 35.00 35.00 35.00 33.92 32.81 30.62 28.43 24.07 19.68 15.32 14.22 13.13491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .81 1 .38 1 .69 1 .75 2 .03 1 .88757 - Global Infrastructure (Lazard) 2 .50 2 .50 2 .50 2 .50 2 .42 2 .34 2 .19 1 .63 1 .03 0 .56 0 .22 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 7 .50 7 .50 7 .50 7 .50 7 .27 7 .03 6 .56 5 .69 4 .47 3 .38 2 .41 2 .03 1 .88Total - Alternative/Specialty Funds 10.00 10.00 10.00 10.00 9.69 9.37 8.75 8.13 6.88 5.63 4.38 4.06 3.76


- 25 -


Composition of ATTITUDE Portfolios (in %) (continued)

Inve

stor

pro

file


2061 - 2065 2056 - 2060 2051 - 2055 2046 - 2050 2041 - 2045 2036 - 2040 2031 - 2035 2026 - 2030 2021 - 2025 2016 - 2020 2011 - 2015 2006 - 2010 2005 and -

GROWTH Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 3 .80 7 .28 11 .80 15 .50 16 .25020 - Bond 5 .63 5 .63 5 .63 5 .73 6 .98 8 .38 10 .79 13 .61 17 .09 21 .15 24 .60 24 .17 25 .44860 - Core Plus Bond (PIMCO) 3 .75 3 .75 3 .75 3 .81 4 .67 5 .60 7 .20 9 .08 11 .40 14 .09 16 .40 16 .12 16 .97893 - Global Fixed Income (PIMCO) 3 .13 3 .13 3 .13 2 .97 3 .34 3 .50 4 .50 4 .81 5 .70 5 .99 6 .20 6 .20 6 .34Total - Income Funds 12.51 12.51 12.51 12.51 14.99 17.48 22.49 27.50 37.99 48.51 59.00 61.99 65.00160 - Dividend 11 .49 11 .49 11 .49 11 .49 11 .15 10 .83 10 .17 9 .51 8 .14 6 .76 5 .38 4 .99 4 .59871 - Canadian Focused Equity (Pyramis) 11 .48 11 .48 11 .48 11 .48 11 .16 10 .83 10 .17 9 .52 8 .14 6 .76 5 .38 4 .99 4 .59888 - Canadian Equity Low Volatility (TD) 3 .83 3 .83 3 .83 3 .83 3 .72 3 .61 3 .39 3 .17 4 .07 4 .51 4 .48 4 .99 4 .59464 - Canadian Equity Growth 7 .66 7 .66 7 .66 7 .66 7 .44 7 .22 6 .78 6 .34 4 .07 2 .25 0 .90 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 3 .83 3 .83 3 .83 3 .83 3 .72 3 .61 3 .39 3 .17 2 .71 2 .25 1 .79 1 .66 1 .53Total - Canadian Equity Funds 38.29 38.29 38.29 38.29 37.19 36.10 33.90 31.71 27.13 22.53 17.93 16.63 15.30876 - Global Equity Index ACWI (BlackRock) 9 .57 9 .57 9 .57 9 .57 9 .30 9 .02 8 .48 7 .93 6 .78 5 .63 4 .48 4 .16 3 .83500 - Global Equity (Hexavest) 9 .57 9 .57 9 .57 9 .95 10 .04 10 .11 9 .83 9 .52 8 .41 7 .21 5 .92 5 .65 5 .36465 - Global Equity (Templeton) 11 .48 11 .48 11 .48 11 .10 10 .41 9 .75 8 .82 7 .93 6 .51 5 .18 3 .95 3 .49 3 .06531 - Global Equity Small Cap (Deutsche AWM) 1 .91 1 .91 1 .91 1 .91 1 .86 1 .81 1 .70 1 .59 1 .36 1 .13 0 .90 0 .83 0 .77130 - Global Equity Small Cap (Mawer) 1 .91 1 .91 1 .91 1 .91 1 .86 1 .81 1 .70 1 .59 1 .36 1 .13 0 .90 0 .83 0 .77122 - Emerging Markets (Aberdeen) 3 .83 3 .83 3 .83 3 .83 3 .72 3 .61 3 .39 3 .17 2 .71 2 .25 1 .79 1 .66 1 .53Total - Foreign Equity Funds 38.27 38.27 38.27 38.27 37.19 36.11 33.92 31.73 27.13 22.53 17.94 16.62 15.32491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .91 1 .55 1 .93 2 .05 2 .38 2 .19757 - Global Infrastructure (Lazard) 2 .73 2 .73 2 .73 2 .73 2 .66 2 .58 2 .42 1 .81 1 .16 0 .64 0 .26 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 8 .20 8 .20 8 .20 8 .20 7 .97 7 .73 7 .27 6 .34 5 .04 3 .86 2 .82 2 .38 2 .19Total - Alternative/Specialty Funds 10.93 10.93 10.93 10.93 10.63 10.31 9.69 9.06 7.75 6.43 5.13 4.76 4.38

AGGRESSIVE Asset adjustment170 - Short Term Bond 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 3 .10 6 .30 10 .60 14 .13 15 .00020 - Bond 2 .23 2 .23 2 .23 2 .26 3 .50 4 .79 7 .18 9 .90 13 .92 18 .28 22 .09 22 .03 23 .47860 - Core Plus Bond (PIMCO) 1 .50 1 .50 1 .50 1 .53 2 .33 3 .20 4 .80 6 .60 9 .30 12 .21 14 .73 14 .69 15 .66893 - Global Fixed Income (PIMCO) 1 .25 1 .25 1 .25 1 .19 1 .67 2 .00 3 .00 3 .50 4 .65 5 .19 5 .57 5 .65 5 .85Total - Income Funds 4.98 4.98 4.98 4.98 7.50 9.99 14.98 20.00 30.97 41.98 52.99 56.50 59.98160 - Dividend 12 .47 12 .47 12 .47 12 .47 12 .14 11 .81 11 .16 10 .50 9 .06 7 .61 6 .17 5 .71 5 .25871 - Canadian Focused Equity (Pyramis) 12 .47 12 .47 12 .47 12 .47 12 .14 11 .81 11 .16 10 .50 9 .06 7 .61 6 .17 5 .71 5 .25888 - Canadian Equity Low Volatility (TD) 4 .16 4 .16 4 .16 4 .16 4 .05 3 .94 3 .72 3 .50 4 .53 5 .08 5 .14 5 .71 5 .25464 - Canadian Equity Growth 8 .31 8 .31 8 .31 8 .31 8 .09 7 .88 7 .44 7 .00 4 .53 2 .54 1 .03 0 .00 0 .00511 - Canadian Equity Small Cap (Montrusco) 4 .16 4 .16 4 .16 4 .16 4 .05 3 .94 3 .72 3 .50 3 .02 2 .54 2 .06 1 .90 1 .75Total - Canadian Equity Funds 41.57 41.57 41.57 41.57 40.47 39.38 37.20 35.00 30.20 25.38 20.57 19.03 17.50876 - Global Equity Index ACWI (BlackRock) 10 .39 10 .39 10 .39 10 .39 10 .12 9 .84 9 .30 8 .75 7 .55 6 .34 5 .14 4 .76 4 .38500 - Global Equity (Hexavest) 10 .39 10 .39 10 .39 10 .81 10 .93 11 .03 10 .78 10 .50 9 .36 8 .12 6 .79 6 .47 6 .13465 - Global Equity (Templeton) 12 .47 12 .47 12 .47 12 .05 11 .33 10 .63 9 .67 8 .75 7 .25 5 .84 4 .52 4 .00 3 .50531 - Global Equity Small Cap (Deutsche AWM) 2 .08 2 .08 2 .08 2 .08 2 .02 1 .97 1 .86 1 .75 1 .51 1 .27 1 .03 0 .95 0 .88130 - Global Equity Small Cap (Mawer) 2 .08 2 .08 2 .08 2 .08 2 .02 1 .97 1 .86 1 .75 1 .51 1 .27 1 .03 0 .95 0 .88122 - Emerging Markets (Aberdeen) 4 .16 4 .16 4 .16 4 .16 4 .05 3 .94 3 .72 3 .50 3 .02 2 .54 2 .06 1 .90 1 .75Total - Foreign Equity Funds 41.57 41.57 41.57 41.57 40.47 39.38 37.19 35.00 30.20 25.38 20.57 19.03 17.52491 - Balanced-Risk Allocation (Invesco) 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 0 .00 1 .00 1 .73 2 .18 2 .35 2 .72 2 .50757 - Global Infrastructure (Lazard) 2 .97 2 .97 2 .97 2 .97 2 .89 2 .81 2 .66 2 .00 1 .29 0 .73 0 .29 0 .00 0 .00152 - Global Direct Real Estate - Portfolios (UBS) 8 .91 8 .91 8 .91 8 .91 8 .67 8 .44 7 .97 7 .00 5 .61 4 .35 3 .23 2 .72 2 .50Total - Alternative/Specialty Funds 11.88 11.88 11.88 11.88 11.56 11.25 10.63 10.00 8.63 7.26 5.87 5.44 5.00


- 26 -


PORTFOLIOS INDEXES

Benchmark indexes

Simple returns1 (in %)

Compound annual returns (in %)



1 month 3 months YTD 1 year 3 years 5 years 1 month 3 months YTD 1 year 3 years 5 years

CONSERVATIVEConservative Portfolio 2001 to 2005 INP9545 0 .7 1 .5 4 .0 4 .0 4 .1 4 .5 0 .7 1 .1 3 .5 3 .5 3 .7 4 .2Conservative Portfolio 2006 to 2010 INP9000 0 .7 1 .5 3 .8 3 .8 4 .8 5 .2 0 .6 1 .2 3 .2 3 .2 4 .4 4 .7Conservative Portfolio 2011 to 2015 INP9546 0 .7 1 .6 3 .8 3 .8 5 .4 5 .7 0 .6 1 .2 3 .0 3 .0 4 .8 5 .1Conservative Portfolio 2016 to 2020 INP9001 0 .7 1 .9 3 .9 3 .9 6 .0 6 .1 0 .6 1 .4 3 .0 3 .0 5 .3 5 .4Conservative Portfolio 2021 to 2025 INP9547 0 .6 2 .1 4 .2 4 .2 6 .9 6 .8 0 .5 1 .6 3 .1 3 .1 6 .1 5 .9Conservative Portfolio 2026 to 2030 INP9002 0 .6 2 .4 4 .5 4 .5 7 .6 6 .7 0 .4 1 .8 3 .1 3 .1 6 .7 6 .0Conservative Portfolio 2031 to 2035 INP9548 0 .5 2 .5 4 .9 4 .9 8 .0 7 .0 0 .3 1 .9 3 .3 3 .3 7 .1 6 .2Conservative Portfolio 2036 to 2040 INP9003 0 .4 2 .7 5 .5 5 .5 8 .5 7 .1 0 .2 2 .0 3 .8 3 .8 7 .5 6 .4Conservative Portfolio 2041 to 2045 INP9549 0 .4 2 .7 5 .5 5 .5 8 .8 7 .4 0 .2 2 .1 3 .8 3 .8 7 .7 6 .5Conservative Portfolio 2046 to 2050 INP9004 0 .3 2 .8 5 .6 5 .6 9 .2 7 .4 0 .2 2 .1 3 .8 3 .8 8 .1 6 .6Conservative Portfolio 2051 to 2055 INP9550 0 .3 2 .8 5 .6 5 .6 9 .5 7 .7 0 .2 2 .1 3 .7 3 .7 8 .3 6 .7Conservative Portfolio 2056 to 2060 INP9339 0 .3 2 .8 5 .6 5 .6 9 .5 7 .4 0 .2 2 .1 3 .7 3 .7 8 .3 6 .6Conservative Portfolio 2061 to 2065 INPA005 0 .3 2 .8 5 .6 5 .6 9 .5 7 .4 0 .2 2 .1 3 .7 3 .7 8 .3 6 .6

MODERATEModerate Portfolio 2001 to 2005 INP9552 0 .7 1 .7 4 .0 4 .0 5 .0 4 .7 0 .6 1 .4 3 .3 3 .3 4 .5 4 .4Moderate Portfolio 2006 to 2010 INP9005 0 .7 1 .8 3 .8 3 .8 6 .0 5 .6 0 .6 1 .4 2 .9 2 .9 5 .4 5 .1Moderate Portfolio 2011 to 2015 INP9553 0 .7 1 .9 3 .6 3 .6 6 .8 6 .2 0 .5 1 .5 2 .6 2 .6 6 .0 5 .5Moderate Portfolio 2016 to 2020 INP9006 0 .6 2 .1 3 .8 3 .8 7 .4 6 .6 0 .4 1 .7 2 .6 2 .6 6 .5 5 .9Moderate Portfolio 2021 to 2025 INP9554 0 .5 2 .4 4 .2 4 .2 8 .0 7 .1 0 .3 1 .9 2 .8 2 .8 7 .0 6 .2Moderate Portfolio 2026 to 2030 INP9007 0 .5 2 .7 4 .7 4 .7 8 .6 7 .1 0 .2 2 .1 3 .0 3 .0 7 .5 6 .3Moderate Portfolio 2031 to 2035 INP9555 0 .4 2 .9 5 .2 5 .2 9 .1 7 .4 0 .2 2 .2 3 .3 3 .3 8 .0 6 .5Moderate Portfolio 2036 to 2040 INP9008 0 .3 3 .0 5 .9 5 .9 9 .7 7 .6 0 .1 2 .3 3 .8 3 .8 8 .5 6 .7Moderate Portfolio 2041 to 2045 INP9556 0 .3 3 .1 5 .9 5 .9 10 .0 7 .8 0 .1 2 .4 3 .8 3 .8 8 .7 6 .9Moderate Portfolio 2046 to 2050 INP9009 0 .2 3 .2 6 .0 6 .0 10 .4 7 .9 0 .0 2 .5 3 .9 3 .9 9 .1 7 .0Moderate Portfolio 2051 to 2055 INP9557 0 .2 3 .2 6 .0 6 .0 10 .6 8 .1 0 .0 2 .4 3 .8 3 .8 9 .3 7 .1Moderate Portfolio 2056 to 2060 INP9340 0 .2 3 .2 6 .0 6 .0 10 .6 7 .9 0 .0 2 .4 3 .8 3 .8 9 .3 7 .0Moderate Portfolio 2061 to 2065 INPA004 0 .2 3 .2 6 .0 6 .0 10 .6 7 .8 0 .0 2 .4 3 .7 3 .7 9 .3 7 .0

BALANCEDBalanced Portfolio 2001 to 2005 INP9559 0 .6 1 .9 3 .9 3 .9 6 .0 5 .3 0 .5 1 .6 3 .0 3 .0 5 .3 4 .9Balanced Portfolio 2006 to 2010 INP9010 0 .6 2 .0 3 .7 3 .7 6 .7 5 .9 0 .5 1 .6 2 .7 2 .7 6 .0 5 .4Balanced Portfolio 2011 to 2015 INP9560 0 .6 2 .1 3 .7 3 .7 7 .3 6 .4 0 .5 1 .7 2 .6 2 .6 6 .4 5 .7Balanced Portfolio 2016 to 2020 INP9011 0 .5 2 .4 3 .9 3 .9 7 .9 6 .8 0 .3 2 .0 2 .6 2 .6 6 .9 6 .0Balanced Portfolio 2021 to 2025 INP9561 0 .4 2 .8 4 .4 4 .4 8 .9 7 .5 0 .2 2 .2 2 .8 2 .8 7 .7 6 .5Balanced Portfolio 2026 to 2030 INP9012 0 .3 3 .1 4 .9 4 .9 9 .7 7 .6 0 .1 2 .5 2 .9 2 .9 8 .4 6 .7Balanced Portfolio 2031 to 2035 INP9562 0 .3 3 .3 5 .5 5 .5 10 .2 8 .0 0 .0 2 .5 3 .3 3 .3 8 .9 7 .0Balanced Portfolio 2036 to 2040 INP9013 0 .2 3 .4 6 .2 6 .2 10 .9 8 .0 0 .0 2 .7 3 .9 3 .9 9 .4 7 .1Balanced Portfolio 2041 to 2045 INP9563 0 .2 3 .5 6 .3 6 .3 11 .1 8 .2 (0 .1) 2 .7 3 .9 3 .9 9 .7 7 .2Balanced Portfolio 2046 to 2050 INP9014 0 .1 3 .5 6 .4 6 .4 11 .6 8 .3 (0 .1) 2 .8 3 .9 3 .9 10 .0 7 .3Balanced Portfolio 2051 to 2055 INP9564 0 .1 3 .5 6 .4 6 .4 11 .8 8 .5 (0 .1) 2 .8 3 .8 3 .8 10 .2 7 .4Balanced Portfolio 2056 to 2060 INP9341 0 .1 3 .5 6 .4 6 .4 11 .8 8 .3 (0 .1) 2 .8 3 .8 3 .8 10 .2 7 .3Balanced Portfolio 2061 to 2065 INPA003 0 .1 3 .5 6 .4 6 .4 11 .8 8 .3 (0 .1) 2 .8 3 .8 3 .8 10 .2 7 .3

GROWTHGrowth Portfolio 2001 to 2005 INP9566 0 .6 2 .0 3 .8 3 .8 6 .9 5 .7 0 .4 1 .7 2 .7 2 .7 6 .1 5 .2Growth Portfolio 2006 to 2010 INP9015 0 .6 2 .1 3 .6 3 .6 7 .7 6 .3 0 .4 1 .8 2 .4 2 .4 6 .7 5 .7Growth Portfolio 2011 to 2015 INP9567 0 .6 2 .3 3 .6 3 .6 8 .2 6 .8 0 .4 1 .9 2 .3 2 .3 7 .2 6 .0Growth Portfolio 2016 to 2020 INP9016 0 .5 2 .6 3 .8 3 .8 8 .9 7 .1 0 .3 2 .2 2 .3 2 .3 7 .7 6 .3Growth Portfolio 2021 to 2025 INP9568 0 .4 2 .9 4 .4 4 .4 9 .8 7 .9 0 .1 2 .4 2 .6 2 .6 8 .5 6 .7Growth Portfolio 2026 to 2030 INP9017 0 .3 3 .3 5 .0 5 .0 10 .7 8 .0 0 .0 2 .7 2 .8 2 .8 9 .2 6 .9Growth Portfolio 2031 to 2035 INP9569 0 .2 3 .5 5 .6 5 .6 11 .3 8 .4 (0 .1) 2 .7 3 .2 3 .2 9 .7 7 .2Growth Portfolio 2036 to 2040 INP9018 0 .2 3 .6 6 .5 6 .5 12 .0 8 .4 (0 .1) 2 .9 3 .9 3 .9 10 .4 7 .4Growth Portfolio 2041 to 2045 INP9570 0 .1 3 .7 6 .6 6 .6 12 .3 8 .6 (0 .2) 2 .9 3 .9 3 .9 10 .6 7 .5Growth Portfolio 2046 to 2050 INP9019 0 .1 3 .7 6 .6 6 .6 12 .7 8 .7 (0 .2) 3 .0 3 .9 3 .9 11 .0 7 .6Growth Portfolio 2051 to 2055 INP9571 0 .1 3 .7 6 .6 6 .6 12 .9 8 .9 (0 .2) 3 .0 3 .8 3 .8 11 .2 7 .7Growth Portfolio 2056 to 2060 INP9342 0 .1 3 .7 6 .6 6 .6 12 .9 8 .7 (0 .2) 3 .0 3 .8 3 .8 11 .2 7 .6Growth Portfolio 2061 to 2065 INPA002 0 .1 3 .7 6 .6 6 .6 12 .9 8 .7 (0 .2) 3 .0 3 .8 3 .8 11 .1 7 .6

ATTITUDE Portfolios

Gross returns as at December 31, 2015Group savings and retirement

- 27 -


PORTFOLIOS INDEXES

Benchmark indexes





1 month 3 months YTD 1 year 3 years 5 years 1 month 3 months YTD 1 year 3 years 5 years

AGGRESSIVEAggressive Portfolio 2001 to 2005 INP9573 0 .6 2 .2 3 .8 3 .8 7 .7 5 .9 0 .4 1 .9 2 .6 2 .6 6 .8 5 .4Aggressive Portfolio 2006 to 2010 INP9020 0 .5 2 .3 3 .4 3 .4 8 .6 6 .7 0 .4 2 .0 2 .1 2 .1 7 .5 6 .0Aggressive Portfolio 2011 to 2015 INP9574 0 .5 2 .4 3 .4 3 .4 9 .1 7 .1 0 .3 2 .1 2 .0 2 .0 8 .0 6 .3Aggressive Portfolio 2016 to 2020 INP9021 0 .4 2 .8 3 .7 3 .7 9 .8 7 .5 0 .2 2 .3 2 .0 2 .0 8 .5 6 .5Aggressive Portfolio 2021 to 2025 INP9575 0 .3 3 .1 4 .4 4 .4 10 .8 8 .2 0 .0 2 .6 2 .3 2 .3 9 .3 7 .0Aggressive Portfolio 2026 to 2030 INP9022 0 .2 3 .5 5 .0 5 .0 11 .7 8 .3 (0 .1) 2 .9 2 .6 2 .6 10 .0 7 .2Aggressive Portfolio 2031 to 2035 INP9576 0 .2 3 .7 5 .7 5 .7 12 .4 8 .8 (0 .2) 2 .9 3 .1 3 .1 10 .6 7 .5Aggressive Portfolio 2036 to 2040 INP9023 0 .1 3 .8 6 .7 6 .7 13 .1 8 .8 (0 .2) 3 .1 3 .9 3 .9 11 .3 7 .7Aggressive Portfolio 2041 to 2045 INP9577 0 .1 3 .9 6 .8 6 .8 13 .4 9 .0 (0 .3) 3 .1 3 .9 3 .9 11 .5 7 .8Aggressive Portfolio 2046 to 2050 INP9024 0 .0 4 .0 6 .9 6 .9 13 .8 9 .1 (0 .3) 3 .2 3 .9 3 .9 11 .9 7 .9Aggressive Portfolio 2051 to 2055 INP9578 0 .0 4 .0 6 .9 6 .9 14 .1 9 .3 (0 .3) 3 .2 3 .8 3 .8 12 .1 8 .0Aggressive Portfolio 2056 to 2060 INP9343 0 .0 4 .0 6 .9 6 .9 14 .1 9 .1 (0 .3) 3 .2 3 .8 3 .8 12 .1 7 .9Aggressive Portfolio 2061 to 2065 INPA001 0 .0 3 .9 6 .9 6 .9 14 .0 9 .1 (0 .3) 3 .2 3 .8 3 .8 12 .1 7 .9



1 month 3 months YTD 1 year 3 years 5 years

BOND INDEXESIN019 FTSE TMX Canada Short Term Bond Index 0 .5 0 .5 2 .6 2 .6 2 .5 2 .8IN021 FTSE TMX Canada Universe Bond Index 1 .1 1 .0 3 .5 3 .5 3 .6 4 .8IN124 Barclays U .S . Aggregate Index (CAD Hedged) (0 .3) (0 .6) 1 .1 1 .1 2 .2 0 .0

EQUITY INDEXESIN024 S&P/TSX Composite Index (3 .1) (1 .4) (8 .3) (8 .3) 4 .6 2 .3IN031 S&P/TSX Capped Composite Index (3 .1) (1 .4) (8 .3) (8 .3) 4 .6 2 .3IN037 S&P/TSX SmallCap Index (1 .6) 1 .1 (13 .3) (13 .3) (3 .1) (5 .7)IN107 MSCI ACWI Ex-Canada Index (Can . $) (Reuters) (net ret .) 2 .6 9 .2 18 .1 18 .1 21 .0 13 .9 IN008 MSCI - World Index (Can . $) (net ret .) 2 .0 9 .0 18 .3 18 .3 22 .4 14 .9IN079 MSCI - World Small Cap Index (Can . $) 1 .2 7 .8 19 .4 19 .4 23 .7 15 .4IN006 MSCI - Emerging Markets Index (Can . $) 1 .5 4 .1 1 .9 1 .9 4 .5 2 .1INDC491 Composite Index - 491 1 .1 5 .1 11 .4 11 .4 14 .0 0 .0 INDC757 Composite index - 757 (1 .6) 0 .0 (0 .3) (0 .3) 13 .6 10 .8 INDC152 Composite Index - 152 1 .2 2 .2 7 .9 7 .9 7 .7 0 .0

COMPOSITE INDEXES (PORTFOLIOS)

Each portfolio index is composed of a set of benchmark sub-indexes, listed above . These sub-indexes are linked to the portfolios’ underlying funds . The weighting used is equal to the asset allocation of the portfolios’ underlying funds . The asset allocation varies periodically . The current allocation appears on the Composition of the ATTITUDE portfolios (in %) page .

1 Rates of return for the period are non-annualized .2 Please refer to the Legal Notices at the end of this publication for more information about these Indexes .

Some portfolio returns are simulated as if they were in effect during the periods shown above.

The above returns are gross returns and do not take into account management and administration fees. Past performance is not a guarantee of future returns.

ATTITUDE Portfolios (continued)

Benchmark Indexes2

Gross returns as at December 31, 2015

Gross returns as at December 31, 2015


- 28 -


Group Investment Funds

The returns of the funds presented in this document are gross returns, i.e., before the deduction of all fees pertaining to group investment funds.



Past performance is not a guarantee of future returns.

Asset Allocation - Conservative

Commentary

The Fund aims to generate superior long term growth while minimizing risk through diversity in its investments and the integration of several portfolio managers . The Fund is invested in fixed income, Canadian equity, foreign equity and alternative funds . Its neutral positioning is as follows: 75% in fixed incomes securities, 11% in Canadian equities, 11% in foreign equities and 3% in alternative . This allocation varies according to the asset allocation committee responsible for such decisions .

Asset mix of the FundAs at December 31, 2015

Fund Code: 506Inception date: December 2004

Investment Advisor

Asset AllocationManagement team composed of several managers

Objectives of the Fund• Combines different managers with different

management styles in a same fund

• Diversification of the risk between the asset classes

• Active allocation of investments by asset classes

• Conforms to a medium and long term investment horizon

Investment styleAsset mix favouring fixed income securities asset classes and multi-management

Investment limits Min. Max.

Money Market 0% 20%Fixed Income 55% 95%Canadian Equity 0% 26%Foreign Equity 0% 26%Alternative/Specialty 0% 6%

Risk level

Very Low to Moderate low Low moderate Moderate to high High

Asset mix of reference portfolio

Income Fund

Bond 67 .500%

Global Fixed Income (PIMCO) 5 .000%

Floating Rate Bank Loans (AlphaFixe)

2 .500%

Canadian Equity Funds

Dividend 3 .300%

Canadian Equity Growth 3 .300%

Canadian Equity (Jarislowsky) 3 .300%

Canadian Equity Small Cap

(Montrusco Bolton)1 .100%

Foreign Equity Funds

Global Equity (Templeton) 2 .475%

Global Equity (Hexavest) 2 .475%

Global Equity (Mawer) 2 .475%

Global Equity* 2 .475%

Global Small Cap (Deutsche AWM) 1 .100%

Alternative/Specialty Funds

Global Direct Real Estate -

Portfolios (UBS)2 .000%

Global Infrastructure Equity Index

(BlackRock) 1 .000%

100 .000%

Canadian Bonds58.21%

Canadian Equity18.04%

Foreign Equity16.13%

Foreign Bonds4.11%

Short term and other3.51%




Foreign Bonds4.11%


Performance - Gross returnsReturns before deduction of management and administration fees

Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Dec. 2004

Fund 5 .2 0 .5 2 .1 1 .1 5 .2 7 .3 7 .5 7 .1 6 .8 6 .0 6 .3Composite index1 3 .8 0 .8 1 .7 0 .7 3 .8 6 .6 5 .6 5 .4 5 .6 5 .3

Annual returnsAs at December 31 15 14 13 12 11 10 09 08 07 06

Fund 5 .2 9 .4 7 .7 6 .1 5 .8 7 .0 11 .2 (1 .0) 1 .7 7 .4Composite index1 3 .8 9 .5 3 .5 5 .0 6 .4 7 .9 8 .9 (1 .7) 3 .2 6 .9

1 FTSE TMX Canada Universe Bond Index (76 .5%), S&P/TSX Composite Index (10%), MSCI - World Index (Can . $) (net ret .) (11 .5%), MSCI - World Small Cap . Index (Can . $) (1%), BMO Nesbitt Burns Small Cap Index (1%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .

Total net assets: $70.2 million

* The Global Equity (C$ - Hedged) (Hexavest) Fund can also be used, as determined by the Fund’s asset allocation committee .

- 30 -




Asset Allocation - Moderate

Commentary




Investment Advisor







Investment styleAsset mix favouring fixed income securities and multi-management



Risk level






Foreign Bonds3.12%





Foreign Bonds3.12%


Income Fund

Bond 54 .000%



2 .000%


Dividend 5 .400%















(BlackRock) 1 .333%

100 .000%



Fund 5 .3 0 .4 2 .8 1 .0 5 .3 7 .4 8 .9 8 .4 7 .3 6 .2 6 .6Composite index1 3 .6 0 .6 2 .2 0 .1 3 .6 6 .7 6 .6 6 .4 5 .9 5 .4


Fund 5 .3 9 .6 11 .8 7 .1 3 .0 7 .5 14 .6 (6 .7) 1 .8 9 .6Composite Index1 3 .6 9 .8 6 .6 5 .8 3 .8 9 .0 12 .1 (7 .6) 3 .2 9 .0

1 FTSE TMX Canada Universe Bond Index (62%), S&P/TSX Composite Index (16%), MSCI - World Index (Can . $) (net ret .) (18%), MSCI - World Small Cap . Index (Can . $) (2%), BMO Nesbitt Burns Small Cap Index (2%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



- 31 -




Asset Allocation - Balanced

Commentary




Investment Advisor







Investment styleAsset mix favouring a fair balance between asset classes and multi-management



Risk level



Income Fund

Bond 40 .500%



1 .500%


Dividend 7 .500%















(BlackRock) 1 .667%

100 .000%




Foreign Bonds2.30%Short term and other

1.10%





1.10%



Fund 5 .2 0 .3 3 .5 0 .8 5 .2 7 .4 10 .2 9 .6 7 .7 6 .3 6 .8Composite index1 3 .2 0 .4 2 .6 (0 .5) 3 .2 6 .7 7 .7 7 .4 6 .2 5 .5


Fund 5 .2 9 .7 16 .0 8 .0 0 .1 8 .0 18 .0 (12 .1) 1 .8 11 .7Composite Index1 3 .2 10 .2 9 .8 6 .7 1 .2 10 .1 15 .2 (13 .3) 3 .3 11 .2

1 FTSE TMX Canada Universe Bond Index (47 .5%), S&P/TSX Composite Index (22 .5%), MSCI - World Index (Can . $) (net ret .) (25%), MSCI - World Small Cap . Index (Can . $) (2 .5%), BMO Nesbitt Burns Small Cap Index (2 .5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



- 32 -




Asset Allocation - Growth

Commentary




Investment Advisor







Investment styleAsset mix favouring equities and multi-management



Risk level



Income Fund

Bond 27 .000%



1 .000%


Dividend 9 .600%















(BlackRock) 2 .000%

100 .000%





1.13%





1.13%





Fund 4 .9 9 .9 20 .3 8 .9 (2 .6) 8 .5 21 .4 (17 .5) 1 .7 13 .9Composite Index1 2 .9 10 .5 13 .0 7 .5 (1 .3) 11 .1 18 .5 (18 .7) 3 .3 13 .3

1 S&P/TSX Composite Index (33%), FTSE TMX Canada Universe Bond Index (29%), MSCI - World Index (Can . $) (net ret .) (32%), MSCI - World Small Cap . Index (Can . $) (3%), BMO Nesbitt Burns Small Cap Index (3%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



- 33 -




Asset Allocation - Aggressive Growth

Commentary




Investment Advisor







Investment styleAsset mix favouring mostly equities and multi-management



Risk level



Income Fund

Bond 13 .500%



0 .500%


Dividend 11 .700%















(BlackRock) 2 .333%

100 .000%



Canadian Bonds6.47%


Foreign Bonds0.46%



Canadian Bonds6.47%


Foreign Bonds0.46%



Fund 4 .9 0 .1 4 .7 0 .2 4 .9 7 .4 12 .8 12 .0 8 .3 6 .5 7 .3Composite index1 2 .5 (0 .1) 3 .5 (1 .8) 2 .5 6 .6 9 .7 9 .4 6 .6 5 .5


Fund 4 .9 9 .9 24 .6 9 .8 (5 .5) 9 .2 25 .0 (22 .1) 1 .9 15 .9Composite Index1 2 .5 10 .8 16 .3 8 .3 (3 .8) 12 .1 21 .7 (23 .9) 3 .3 15 .5

1 S&P/TSX Composite Index (18 .5%), MSCI - World Index (Can . $) (net ret .) (35%), FTSE TMX Canada Universe Bond Index (38 .5%), MSCI - World Small Cap . Index (Can . $) (4%), BMO Nesbitt Burns Small Cap Index (4%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



- 34 -




Money Market

Commentary

The Fund seeks to maintain excellent protection of capital and a high level of liquidity, while maximizing the total return . It is composed essentially of quality securities, with a maximum term of one year, guaranteed by the provinces, governments and some companies . The management style focuses on interest rate forecasts which are based on careful analysis of the economic outlook .


Fund Code: 070Inception date: September 1991

Investment Advisor

Lead Manager: Christian Pouliot, MBA, CFA

Co-Managers: Louis Gagnon, CFAAlexandre Morin, CFA

Objectives of the Fund• Oriented on short term revenues

• Priority placed on capital protection

• Conforms to a short term investment horizon

Investment styleInterest rate forecasts

Investment limits

Short term 100%

Risk level


Characteristics of the FundAs at December 31, 2015

Average rating

- Money Market securities R2 Low

Average term to maturity 99 days

Yield at market value 0 .5%

Treasury bills100.93%

Cash and Cash Equivalents-0.93%

Treasury bills100.93%

Cash and Cash Equivalents-0.93%


Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Sept. 1991

Fund 0 .7 0 .0 0 .1 0 .3 0 .7 0 .8 0 .9 0 .9 1 .0 1 .8 3 .5Benchmark index1 0 .6 0 .0 0 .1 0 .2 0 .6 0 .8 0 .8 0 .9 0 .9 1 .7


Fund 0 .7 1 .0 1 .0 1 .0 1 .1 0 .6 0 .5 3 .5 4 .6 4 .1Benchmark index1 0 .6 0 .9 1 .0 1 .0 1 .0 0 .5 0 .6 3 .3 4 .4 4 .0

1 FTSE TMX Canada 91 Day T-Bill Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 35 -




Short Term Bond

Commentary

The Fund is managed according to a management style primarily based on securities selection and issuers . The manager also integrates interest rate anticipation in his management process . The fund is characterized by a short and medium term maturity, which minimizes the impact of interest rate fluctuations while generating a good income .


Fund Code: 170Inception date: January 1998

Investment Advisor



Objectives of the Fund• Oriented toward current income

• Moderate long term capital growth

• Conforms to a medium to long term investment horizon



Short term 0% 20%Bond 80% 100%

The average duration of the portfolio must be situated between 50% and 200% of the duration of the FTSE TMX Canada Short Term Bond Index.

Risk level


Corporates54.15%

Provinces23.32%

Canada12.75%

Municipalities and Subsidized6.10%


Mortgage-backed securities0.01%

Corporates54.15%

Provinces23.32%

Canada12.75%





Bond and Short term Portfolios

Average rating - Bonds A+

Average term 3 .1 years

Modified duration 2 .9 years

Average coupon 3 .2%



Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Jan. 1998



Fund 3 .0 3 .5 1 .7 2 .7 5 .0 4 .4 6 .2 4 .7 3 .7 4 .0Benchmark index1 2 .6 3 .1 1 .7 2 .0 4 .7 3 .6 4 .5 8 .6 4 .1 4 .0

1 FTSE TMX Canada Short Term Bond Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 36 -




Emerald Canadian Bond Index (TD)

Commentary

The investment objective of the Fund is to closely track the performance of the FTSE TMX Canada Universe Bond Index . The Fund invests in Canadian issued bond that are selected and weighted mathematically to approximate the overall risk and return characteristics of the FTSE TMX Canada Universe Bond Index . The fund invests in federal, provincial, municipal and corporate bond with a minimum BBB credit rating requirement for the purchase of individual securities .

Asset mix of the underlying fundAs at December 31, 2015


Investment Advisor

Management team composed of several managers




Investment styleIndexed

Investment limits

Industrial Alliance Fund

Min. Max.

Short term 0% 20%Units of the underlying fund 80% 100%

Risk level

Underlying Fund TD Emerald Canadian Bond PTF


Canada36.03%

Provinces33.80%

Corporates28.25%

Municipalities1.79%


Canada36.03%

Provinces33.80%

Corporates28.25%

Municipalities1.79%


Characteristics of the underlying fundAs at December 31, 2015


Average rating - Bonds AA





Performance of the Industrial Alliance Fund - Gross returnsReturns before deduction of management and administration fees




Fund 3 .5 8 .8 (1 .2) 3 .6 9 .7 6 .7 5 .0 6 .7 3 .3 4 .0Benchmark index1 3 .5 8 .8 (1 .2) 3 .6 9 .7 6 .7 5 .4 6 .4 3 .7 4 .1

1 FTSE TMX Canada Universe Bond Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .

Asset mix of the Industrial Alliance FundAs at December 31, 2015 Distribution

Short term 0.05%Units of the underlying fund 99.95%

100.00%


- 37 -




Bond

Commentary

The Fund’s approach in bond management is based on interest-rate movement forecasts, derived from analyses of macroeconomic trends . The management of the duration and the yield curve positioning are the main sources of added value compared to the benchmark . Sector and security selection also contribute to add value . On occasion, the manager may add securities denominated in foreign currencies, real return bond or other special situations likely to improve the portfolio’s return or to reduce volatility .


Fund Code: 020Inception date: May 1977

Investment Advisor









The average duration of the portfolio must be situated between 50% and 150% of the duration of the FTSE TMX Canada Short Term Bond Index.

Risk level


Corporates46.40%

Provinces31.72%

Canada11.79%



Investment Funds2.42%


Corporates46.40%

Provinces31.72%

Canada11.79%



Investment Funds2.42%










Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years May 1977





Total net assets: $2,668.9 million

- 38 -




Bond (Fiera Capital)

Commentary

The Fund aims to provide investors with a moderate real rate of return primarily through interest income . Returns in excess of income will be gained through duration, yield and sector management . The Fund invests primarily in a diversified portfolio of bond issued or guaranteed by Canadian governments (federal and provincial) and corporations .



Investment Advisor

Art Yeates, MBA, CFAGaétan Dupuis, M.Sc.





Investment limits


Min. Max.


Risk level

Underlying Fund Fiera Active Fixed Income Fund


Corporates38.92%

Provinces35.67%

Canada20.41%

Municipalities4.08%Short term and other

0.92%

Corporates38.92%

Provinces35.67%

Canada20.41%

Municipalities4.08%Short term and other

0.92%












Short term (0.03)%Units of the underlying fund 100.03%

100.00%


- 39 -




Bond (PH&N)

Commentary

To achieve the Fund’s investment objectives, the manager invests in high quality Canadian corporate bond and government bond issued in Canadian or U .S . dollars . The average term to maturity of the portfolio is managed within strict guidelines, typically between seven and twelve years . In addition to the standard investment restrictions imposed by securities legislation, the value of any one investment at month-end must not exceed 15% of the Fund’s net assets at market value . This does not apply to government or government-guaranteed debt instruments .


Fund Code: 521First offering: November 2007Inception date: November 2005

Investment AdvisorManagement team composed of several managers




Investment styleInterest rate forecasts and spread trading

Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund Phillips, Hager & North Bond Fund


Corporates37.40%

Provinces37.30%

Canada19.60%

Short term and other5.10%Mortgages

0.60%

Corporates37.40%

Provinces37.30%

Canada19.60%

Short term and other5.10%Mortgages

0.60%








Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Nov. 2005







100.00%


- 40 -




Core Plus Bond (PH&N)

Commentary

The fundamental investment objective of the Fund is to earn interest income and provide reasonable stability of capital by investing primarily in Canadian and non-Canadian fixed income securities .

The fund utilizes several yield-enhancing strategies commonly known as “Plus” strategies . These strategies include mortgages, North American and global high yield bonds, and emerging market debt (EMD), all of which serve to augment and diversify the universe of bonds holdings in an institutional portfolio .


Fund Code: 632First offering: November 2015Inception date: September 2015

Investment Advisor

Will John Stephen BurkeRyan Goulding




Investment styleMultiple strategies

Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 25%Bonds 75% 100%

Risk level

Underlying Fund PH&N Core Plus Bond Fund


Corporates48.70%

Provinces24.50%

Mortgages10.20%

Canada5.90%

Foreign bonds5.50%


Corporates48.70%

Provinces24.50%

Mortgages10.20%

Canada5.90%

Foreign bonds5.50%





Average term 10 .83 months



Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Sept 2015

Fund 4 .0* 1 .0 1 .2 1 .2* 4 .0* 6 .8* - - - - 0 .7Benchmark index1 3 .5 1 .1 1 .0 1 .1 3 .5 6 .1 - - - -


Fund 4 .0* 9 .6* - - - - - - - -Benchmark index1 3 .5 8 .8 - - - - - - - -


* Simulation of past returns as if the Fund had been in effect for these periods .



100.00%


- 41 -




Core Plus Bond (PIMCO)

Commentary

PIMCO is a “core-plus” manager . Their goal is to add value by consistently outperforming the benchmark by tapping traditional and non-traditional sectors of the fixed income markets, while maintaining overall risk similar to that of the benchmark .

Risk factors to which PIMCO is overweight or underweight include: duration; yield curve; sectors of the Canadian bond market, including government bond, provincials and corporate bond; and credit quality . In addition, PIMCO allocates a small portion of its CorePLUS portfolios to out-of-index risk factors comprised of the firm’s best ideas from around the global bond markets, which include international fixed income, currency, Canadian and non-Canadian inflation-linked bond, Canadian and non-Canadian high yield, emerging markets, liquidity and volatility strategies .


Fund Code: 860Inception date: November 2009

Investment Advisor






Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund PIMCO Canada Canadian CorePLUS Bond Trust


Provinces46.00%

Canada19.00%

Corporates17.00%

Foreign bonds10.00%


Provinces46.00%

Canada19.00%

Corporates17.00%

Foreign bonds10.00%




Average rating - Bonds AA-






Fund 4 .5 1 .5 1 .8 1 .8 4 .5 6 .3 4 .0 4 .6 4 .9 - 5 .3Benchmark index1 3 .5 1 .1 1 .0 1 .1 3 .5 6 .1 3 .6 3 .6 4 .8 -


Fund 4 .5 8 .2 (0 .5) 6 .4 6 .1 8 .7 13 .5* 0 .7* 4 .6* -Benchmark index1 3 .5 8 .8 (1 .2) 3 .6 9 .7 6 .7 5 .4 6 .4 3 .7 -





100.00%


- 42 -




Long Term Bond

Commentary

The Fund is primarily composed of bond with long term maturities (10 or more years) . Management of the fund is based primarily on interest rate movements resulting from our analysis of macroeconomic trends . Management of the duration is the primary source of value added, whereas the choice of sectors and securities selection are also sources of value added . The manager could occasionally add securities denominated in foreign currencies, real return bond or other special situations that can contribute to enhancing the return of the portfolio or reduce its volatility .


Fund Code: 504First offering: December 2004Inception date: September 2004

Investment Advisor









Risk level


Provinces50.58%

Corporates26.06%

Canada18.97%

Short term and other2.57%Municipalities and Subsidized

1.82%

Provinces50.58%

Corporates26.06%

Canada18.97%

Short term and other2.57%Municipalities and Subsidized

1.82%



Average rating - Bond AA-










1 FTSE TMX Canada Long Term Bond Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 43 -




Core Plus Long Term Bond (PIMCO)

Commentary

PIMCO is a “core-plus” manager . Their goal is to add value by consistently outperforming a benchmark by tapping traditional and non-traditional sectors of the fixed income markets, while maintaining overall risk similar to that of the benchmark .

Risk factors to which PIMCO is overweight or underweight include: Canadian duration; Canadian yield curve; sectors of the Canadian bond market, including government bond, provincials and corporate bond; and credit quality . In addition, PIMCO allocates a small portion of its CorePLUS portfolios to out-of-index risk factors comprised of the firm’s best ideas from around the global bond markets, which include international fixed income, currency, Canadian and non-Canadian inflation-linked bond, Canadian and non-Canadian high yield, emerging markets, liquidity and volatility strategies .



Investment Advisor






Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund PIMCO Canada Canadian CorePLUS Long Bond Trust


Provinces70.00%

Canada16.00%

Corporates11.00%

Short term and other4.00%Foreign bonds

-1.00%

Provinces70.00%

Canada16.00%

Corporates11.00%

Short term and other4.00%Foreign bonds

-1.00%



Average rating - Bond AA-








Fund 5 .4 16 .8 (5 .6) 7 .7 14 .1 13 .3 11 .2* 3 .6* 4 .6* -Benchmark index1 3 .8 17 .5 (6 .2) 5 .2 18 .1 12 .5 5 .5 2 .7 3 .4 -

1 FTSE TMX Canada Long Term Bond Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 44 -




Global Fixed Income (PIMCO)

Commentary

The Fund aims to optimize current income while respecting the principle of capital conservation and prudent investment management . Long term capital appreciation is a secondary objective . The Fund invests primarily in a diversified portfolio of fixed income securities that are not denominated in Canadian dollars and with a variety of maturities .

The Fund can invest up to 50% of its total assets in high-yield securities (“high risk bond”) that have been rated or, if they are not rated, in securities of comparable quality . The Fund can invest up to 20% of its total assets in securities and instruments that are economically linked to the emerging markets . There is no limit as to the number of securities denominated in currencies in which it can invest . As a general rule, the Fund limits it exposure to currencies (of securities denominated in currencies other than the Canadian dollar) to 10% of its total assets . The Fund can also resort to targeted derivatives, such as options, futures and forward contracts, and swaps . The average duration of this Fund’s portfolio usually varies between zero and eight years .


Fund Code: 893Inception date: March 2013

Investment Advisor


Objectives of the Fund• Oriented on current income by investing

primarily in a diversified portfolio of fixed income securities that are not denominated in Canadian dollars

• Targets moderate long term capital appreciation



Investment limits


Min. Max.


Risk level

Underlying Fund PIMCO Monthly Income Fund (Canada)


Foreign bonds79.10%

Mortgages22.50%

Short term and other-1.60%

Foreign bonds79.10%

Mortgages22.50%







Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Mar. 2013

Fund 3 .4 (0 .8) 0 .7 (0 .2) 3 .4 5 .5 6 .1* 10 .6* - - 5 .5Benchmark index1 1 .1 (0 .3) (0 .6) 0 .8 1 .1 4 .0 2 .2 2 .9 - -


Fund 3 .4 7 .7 7 .3* 25 .4* - - - - - -Benchmark index1 1 .1 6 .9 (1 .3) 5 .0 - - - - - -

1 Barclays U .S . Aggregate Index (CAD Hedged) . Please refer to the Legal Notices at the end of this publication for more information about the Index .


Sector diversification (%) -duration weightedof the underlying fundAs at December 31, 2015

Government-Related 43.30%

Australia 21 .70%

EMU 0 .40%

Japan 0 .10%

United States 26 .60%

Other (5 .50)%

Mortgage 22.50%

Agency 0 .70%

Non-Agency 6 .80%

ABS 12 .00%

CMBS 0 .80%

Other 2 .20%

Investment Grade Credit 6.70%

High Yield Credit 9.90%

Emerging Markets 20.40%

Municipal/Other (1.20)%

Net Cash Equivalents (1.60)%

100 .00%



100.00%


- 45 -




Floating Rate Bank Loan (AlphaFixe)

Commentary

The Fund offers a high current yield solution in the face of a potential interest rate rise and of low interest rates through a rigorous process based on a fundamental credit approach and on capital conservation . In order to reduce the risk associated with interest rates and offer protection against inflation, the Fund is invested in senior secured loans with a credit rating of better than B- .

The Fund may invest in securities denominated in currencies other than Canadian dollars, which exposes investors to currency fluctuations . However, according to investment instructions, the Fund must have a currency coverage ratio of more than 96%, thus limiting the impact of exchange rate fluctuations .


Investment Advisor


Objectives of the Fund• Offer a high current yield solution in the face

of a potential interest rate rise

• Target capital conservation by investing in high-quality bank loans

• Conforms to a medium to long-term investment horizon


Investment limits


Min. Max.


Risk level

Underlying Fund AlphaFixe Floating Rate Bank Loan Fund




Fund 2 .4* (0 .5) (0 .6) (0 .7)* 2 .4* 2 .5* - - - - (0 .6)Benchmark index1 2 .0 (0 .5) (1 .0) (1 .4) 2 .0 2 .4 - - - -


Fund 2 .4* 2 .7* - - - - - - - -Benchmark index1 2 .0 2 .8 - - - - - - - -

1 Credit Suisse 50% BB/50% B Index (Hedged) (Can . $) Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .


Asset mix of theIndustrial Alliance FundAs at December 31, 2015 Distribution


100.00%


Top 10 issuers of the underlying fundAs at December 31, 2015

Albertsons / Safeway 4 .30% PetSmart Inc 4 .00%

AlixPartners, LLP 4 .30% Hostess 3 .90%

Dell Inc 4 .20% Alliant Holdings 3 .90%

Burger King / Tim Hortons 4 .10% CHG Healthcare Services Inc . 3 .60%

Allison Transmissions 4 .00% Dollar Tree 3 .50%

39 .80%


Bank loan Portfolio

Average loan quality BB



Industry Allocation of the underlying fundAs at December 31, 2015

Healthcare 16 .5% Financial 3 .9%

Media/Telecom 13 .8% Gaming/Leisure 2 .7%

Retail 13 .0% Consumer Non-Durables 2 .4%

Food and Drug 9 .9% Housing 2 .3%

Food/Tobacco 7 .4% Manufacturing 2 .3%

Information Technology 6 .5% Forest Products 2 .1%

Service 5 .9% Other 7 .3%

Transportation 4 .0% 100 .0%

Underlying fund composition by credit rating As at December 31, 2015

B 45 .7%

BB 43 .4%

BBB 10 .9%

- 46 -




Diversified Security

Commentary

The investment strategy of the Fund focuses primarily on a judicious allocation between Canadian and foreign equities and fixed income securities . Given the importance of this allocation, a Committee is responsible for making these decisions in accordance with their views on the economy and the markets . In addition, to further diversify the portfolio, stock selection is entrusted to multiple managers with different management styles . As such, the Committee also allocates assets across the different management styles, based on market conditions .



Investment Advisor

Lead Manager:Clément Gignac, M.E.Sc.

Objectives of the Fund• Combines capital growth with current income

• Diversification of the risk between the asset classes and investment style

• Active allocation of investments by asset classes and by investment style


Investment styleAsset mix favouring fixed income securities


Short term 0% 25%Bond 40% 90%Mortgage loans/ Mortgage-backed securities 0% 10%Canadian equity securities 0% 35%Foreign equity securities 0% 35%

The maximum invested in an economic sector of the stock market is limited to the higher of 20% of the Canadian equity sector of the Fund and twice this sector’s weighting on the S&P/TSX Composite Index.

The average duration of the bond portion of the Fund must be situated between 50% and 150% of the duration of the FTSE TMX Canada Universe Bond Index.

Risk level






Foreign Bonds1.14%





Foreign Bonds1.14%



Fund 6 .2 (0 .1) 1 .4 1 .5 6 .2 8 .8 8 .5 7 .7 6 .9 6 .4 7 .3Composite index1 3 .8 0 .6 1 .8 0 .5 3 .8 6 .7 5 .9 5 .6 5 .3 5 .3



1 FTSE TMX Canada Universe Bond Index (65%), S&P/TSX Composite Index (15%), FTSE TMX Canada 91 Day T-Bill Index (5%), MSCI - World Index (Can . $) (net ret .) (15%) . Please refer to the Legal Notices at the end of this publication for more information

about these Indexes .

Top 10 holdings of the FundAs at December 31, 2015

Industrial Alliance Dividend Fund 11 .09% Industrial Alliance International Equity Fund 2 .74%

IA Clarington U .S . Dividend Growth Fund, Series I 7 .10% Province of Ontario, 2 .850%, 2023-06-02 2 .66%

Industrial Alliance Short Term Bond Fund 6 .42% Province of Ontario, 3 .500%, 2024-06-02 1 .56%

Industrial Alliance Global True Conviction Fund 5 .37% Government of Canada, 0 .750%, 2021-03-01 1 .35%

Industrial Alliance Canadian Equity Growth Fund 3 .61% Canada Housing Trust, 1 .250%, 2020-12-15 1 .24%

43 .14%


- 47 -




Balanced Moderate Index (BlackRock)

Commentary

The Fund aims to provide investors with a single investment that is diversified among bond, Canadian equities and foreign equities, providing a balance between income and long term growth using index funds . The Fund strives to maintain the same distribution of assets: 60% equity (20% S&P/TSX Capped Composite Index, 35% MSCI ACWI Ex-Canada Index, 2 .5% FTSE EPRA/NAREIT Developed, 2 .5% Dow Jones U .S . Real Estate Index) and 40% bond (30% FTSE TMX Canada Universe Bond Index, 10% FTSE TMX Canada Real Return Bond Index) .


Fund Code: 889Inception date: October 2012

Investment Advisor

Objectives of the Fund• Combination of equity and bond purchased

on the markets or acquired through other index funds managed by BlackRock

• Diversification of risk across asset classes

• A single fund that combines long term capital growth and interest income


Investment limits


Min. Max.


Risk level

Underlying Fund BlackRock Balanced Moderate Index DC Fund


Holdings of the underlying fundAs at December 31, 2015

BlackRock Canada Universe Bond Index Fund 29 .93% BlackRock CDN MSCI EAFE Equity Index Fund, Class D 12 .44%

BlackRock Canadian Equity Index Fund 19 .75% BlackRock Canada Real Return Bond Index Fund 10 .08%

BlackRock CDN US Equity Index Fund, Class D 19 .08% BlackRock CDN Global Developed Real Estate Index Fund, Class D 5 .15%

iShares MSCI Emerging Markets Index Fund 3 .38%

99 .81%

Canadian bonds40.01%


U.S. Equity19.08%

International Equity15.82%

Alternatives5.15%Short term and other

0.19%



U.S. Equity19.08%


Alternatives5.15%Short term and other

0.19%


Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Oct. 2012

Fund 6 .8 1 .0 3 .7 1 .5 6 .8 9 .5 10 .0 9 .7* 8 .1* 6 .1* 10 .0Composite index1 6 .7 1 .1 3 .7 1 .3 6 .7 9 .4 10 .0 9 .6 8 .0 6 .1


Fund 6 .8 12 .2 11 .1 8 .6* 1 .9* 10 .0* 16 .2* (16 .2)* 1 .4* 12 .9*Composite index1 6 .7 12 .2 11 .1 8 .6 1 .9 10 .2 16 .6 (16 .8) 1 .5 12 .9

1 MSCI ACWI Ex-Canada Index (Can . $) (Reuters) (net ret .) (35%), FTSE TMX Canada Universe Bond Index (30%), S&P/TSX Capped Composite Index (20%), FTSE TMX Canada Real Return Bond Index (Can . $) (10%), Dow Jones U .S . Real Estate Index (2 .5%), FTSE EPRA/NAREIT Developed Index (Can .$) (net ret .) (2 .5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .




100.00%


- 48 -




Diversified

Commentary




Investment Advisor






Investment styleAsset mix favouring a fair balance between asset classes


Short term 0% 25%Bond 20% 70%Mortgage loans/ Mortgage-backed securities 0% 10%Canadian equity securities 5% 45%Foreign equity securities 5% 45%

The maximum invested in an economic sector of the stock market is limited to the higher of 20% of the Fund’s assets and twice this sector’s weighting on the S&P/TSX Composite Index.

The average duration of the bond portion of the Fund must be situated between 50% and 150% of the duration of the FTSE TMX Canada Universe Bond Index.

Risk level






Foreign Bonds0.66%





Foreign Bonds0.66%



Fund 6 .0 (0 .8) 2 .1 (0 .6) 6 .0 8 .6 10 .7 9 .8 7 .6 6 .7 8 .8Composite index1 4 .0 0 .3 2 .4 0 .1 4 .0 7 .2 7 .5 7 .1 5 .9 5 .6


Fund 6 .0 11 .2 14 .9 7 .2 (0 .6) 9 .7 21 .3 (13 .2) 2 .6 11 .8Composite index1 4 .0 10 .4 8 .3 5 .8 1 .4 10 .3 15 .8 (12 .2) 4 .8 10 .2

1 FTSE TMX Canada Universe Bond Index (45%), S&P/TSX Composite Index (25%), MSCI - World Index (Can . $) (net ret .) (25%), FTSE TMX Canada 91 Day T-Bill Index (5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .


Industrial Alliance Global True Conviction Fund 10 .04% Industrial Alliance U .S . Equity Fund 4 .21%

Industrial Alliance Canadian Equity Small Cap Fund 9 .05% IA Clarington U .S . Dividend Growth Fund, Series I 3 .81%

Industrial Alliance Dividend Fund 6 .63% iShares MSCI Mexico Capped ETF 2 .29%

Industrial Alliance International Equity Fund 6 .55% Province of Ontario, 2 .850%, 2023-06-02 1 .56%

Industrial Alliance Short Term Bond Fund 4 .62% Royal Bank of Canada 1 .05%

49 .81%

Total net assets: $1,986.2 million

- 49 -




Balanced (Beutel Goodman)

Commentary

Beutel Goodman’s bottom-up, value equity research approach leads them to assign a target price to each security they invest in, and extending this they are able to project a weighted return-to-target price for each equity component in the balanced fund . The fixed income component of a portfolio remains relatively fixed between 35% and 45% during a market cycle, with the invested equity portion being adjusted in response to the availability of attractive equity values . This approach does not lead to large asset class reallocations, rather the manager’s disciplined equity target price driven buy/sell process results in a gradual shift, whereby expensive assets are gradually reduced in favour of undervalued assets .



Investment Advisor







Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 15%Bond 30% 55%Canadian equity securities 25% 55%Global equity securities 15% 40%

Risk level

Underlying Fund Beutel Goodman Balanced Fund


Sector Allocation of the underlying fundAs at December 31, 2015

Canadian Equity Portfolio

Financials 12 .35%

Consumer Discretionary 3 .77%

Energy 3 .34%

Telecommunication Services 3 .18%

Industrials 2 .77%

Consumer Staples 1 .76%

Materials 1 .65%

Information Technology 0 .79%

Utilities 0 .07%

Health Care 0 .02%

29 .70%

Bonds30.54%


U.S. Equity19.35%



Bonds30.54%


U.S. Equity19.35%










Fund 4 .6 (0 .3) 3 .6 0 .3 4 .6 6 .9 10 .3 10 .5 8 .4* 6 .9* 10 .4Composite index1 3 .8 0 .1 2 .3 (0 .3) 3 .8 6 .9 8 .5 8 .2 6 .6 5 .5


Fund 4 .6 9 .2 17 .4 11 .1 0 .5* 9 .7* 15 .1* (9 .9)* 0 .7* 13 .9*Composite index1 3 .8 10 .2 11 .7 7 .3 0 .4 9 .6 15 .2 (14 .9) 2 .6 12 .2

1 FTSE TMX Canada Universe Bond Index (40%), S&P/TSX Composite Index (30%), MSCI - EAFE Index (Can . $) (net ret .) (13%), S&P 500 Index (Can . $) (12%), FTSE TMX Canada 91 Day T-Bill Index (5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .




100.00%


- 50 -




Balanced (Jarislowsky) Registered Plans Only

Commentary

The manager’s objective is to add value over the benchmark index through long term asset allocation, thereby reducing volatility to a minimum . It is a diversified portfolio, invested in fixed income securities, and Canadian, U .S . and international equities . Asset allocation is reviewed each week by the strategic investment committee . The revision process includes discussions on local and international macroeconomic factors, as well as the relative valuations of the fixed income securities and equities .


Fund Code: 463Inception date: February 2001

Investment Advisor

Strategy committee






Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 20%Bond 30% 50%Canadian equity securities 15% 50%U.S. equity securities 5% 35%International equity securities 0% 30%

Risk level

Underlying Fund JF Balanced Fund




Financials 8 .43%

Energy 6 .16%

Industrials 3 .16%




Materials 1 .10%

Utilities 0 .45%

26 .80%

Bonds31.30%


U.S. Equity20.10%



Bonds31.30%


U.S. Equity20.10%










Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Feb. 2001




1 FTSE TMX Canada Universe Bond Index (39%), S&P/TSX Composite Index (30%), S&P 500 Index (Can . $) (12 .5%), MSCI - EAFE Index (Can . $) (net ret .) (12 .5%), FTSE TMX Canada 91 Day T-Bill Index (6%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



100.00%


- 51 -




Balanced Growth (MFS)

Commentary

The Fund aims to provide investors with a superior real rate of return through both capital appreciation and income by investing in a diversified portfolio of Canadian and global (U .S . and international) equities, fixed income and cash investments . The stocks are chosen for their growth potential . This means the stock’s expected earnings growth is faster than the expected earnings growth for the overall market . MFS adjusts the Fund’s asset mix percentages periodically to take advantage of market opportunities, but stays within the following ranges: stocks 54 to 66%, fixed income 25 to 45% and cash 0 to 15% .



Investment Advisor

Robert Spector, CFA






Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 20%Bond 20% 50%Equity securities 45% 75%

Risk level

Underlying Fund MFS Balanced Growth Fund




Financials 8 .80%

Energy 4 .91%


Industrials 3 .52%

Materials 2 .12%


Health Care 1 .19%



Utilities 0 .20%

27 .18%

Global Equity35.87%



Foreign bonds4.95%


Global Equity35.87%



Foreign bonds4.95%




Average rating - Bonds AA-









Fund 6 .7 12 .6 15 .5 10 .2 (7 .5) 8 .9 20 .8 (17 .4) 2 .2 13 .6Composite index1 4 .1 10 .8 13 .3 7 .5 (0 .2) 9 .7 15 .6 (16 .6) 2 .9 11 .7

1 Since July 1, 2007: FTSE TMX Canada Universe Bond Index (35%), S&P/TSX Composite Index (30%), MSCI - World Index (Can . $) (net ret .) (30%), FTSE TMX Canada 91 Day T-Bill Index (5%)

Before July 1, 2007: FTSE TMX Canada Universe Bond Index (40%), S&P/TSX Composite Index (38%), MSCI - World Index (Can . $) (net ret .) (17%), FTSE TMX Canada 91 Day T-Bill Index (5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



100.00%


- 52 -




Balanced (PH&N)

Commentary

The PH&N balanced approach follows a three part investment philosophy .

1 . Investments in high quality common stocks represent the best vehicle for creating wealth over the long term .

2 . Wealth preservation and income objectives are best met by balancing common stock and bond investments .

3 . The cyclical nature of markets requires the timely adjustment of the mix of common stock and bond investments .

PH&N’s goal is to take advantage of market opportunities by anticipating the best performing asset class at each stage of the business cycle . Through increasing exposure to these classes the overall return of the portfolio can be enhanced .



Investment Advisor







Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 15%Bond 30% 40%Canadian equity securities 30% 40%Global equity securities 20% 30%

Risk level

Underlying Fund Phillips, Hager & North Balanced Pension Trust




Financials 11 .78%

Energy 6 .35%


Industrials 2 .44%

Materials 2 .41%




Health Care 0 .72%

Utilities 0 .27%

29 .80%

Bonds37.00%

Global Equity31.20%



Bonds37.00%

Global Equity31.20%





Average rating - Bond AA






Fund 5 .7 (0 .2) 3 .0 0 .1 5 .7 9 .1 10 .9 10 .3 7 .6 5 .8 6 .0Composite index1 3 .6 0 .1 2 .5 (0 .7) 3 .6 7 .1 8 .8 8 .4 6 .6 5 .5



1 FTSE TMX Canada Universe Bond Index (38%), S&P/TSX Capped Composite Index (30%), MSCI - World Index (Can . $) (net ret .) (26%), MSCI - Emerging Markets Index (Can . $) (4%), FTSE TMX Canada 91 Day T-Bill Index (2%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



100.00%


- 53 -




Diversified Opportunity

Commentary



Fund Code: 250 Inception date: January 1999

Investment Advisor






Investment styleAsset mix favouring equities


Short term 0% 25%Bond 0% 50%Mortgage loans/Mortgage-backed securities 0% 10%Canadian equity securities 20% 60%Foreign equity securities 10% 50%

No restriction concerning the weighting in each economic sector of the Canadian stock market.

No restriction concerning the duration and the term of the bond portfolio.

Risk level





Short term and other7.59%Foreign Bonds

0.30%




Short term and other7.59%Foreign Bonds

0.30%



Fund 4 .6 (0 .9) 2 .0 (1 .7) 4 .6 8 .6 11 .5 10 .5 7 .5 6 .7 8 .5Composite index1 2 .8 (0 .3) 2 .4 (1 .2) 2 .8 6 .8 8 .6 8 .2 6 .0 5 .6



1 S&P/TSX Composite Index (40%), MSCI - World Index (Can . $) (net ret .) (30%), FTSE TMX Canada Universe Bond Index (25%), FTSE TMX Canada 91 Day T-Bill Index (5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .


Industrial Alliance Canadian Equity Growth Fund 16 .00% Industrial Alliance Short Term Bond Fund 5 .21%

Industrial Alliance International Equity Fund 10 .74% Industrial Alliance U .S . Equity Fund 4 .37%

Industrial Alliance Global True Conviction Fund 10 .29% iShares MSCI India ETF 3 .43%

Industrial Alliance Canadian Equity Small Cap Fund 9 .82% iShares MSCI Mexico Capped ETF 2 .50%

Industrial Alliance Dividend Fund 6 .15% Royal Bank of Canada 0 .80%

69 .31%


- 54 -




Fidelity Canadian Asset Allocation

Commentary

The portfolio is divided in two parts: asset allocation decision and security selection . The asset allocation is done following a disciplined multi-step process (meetings and discussions regarding asset allocation dynamics, review potential changes and formulate a recommended allocation) . Afterward, each sub-portfolio manager is assigned a specific portion of the overall Fund and is responsible for all security/sector selection within that component .



Investment Advisor

Geoff Stein, MBA, CFA David Wolf, BA Econ.

Objectives of the Fund• Aims to achieve high investment returns by

investing in equity securities, fixed income securities, and money market instruments

• The fund invests primarily in Canadian securities

Investment styleAsset mix favouring equities

Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 70%Bond 10% 60%Equity securities 20% 90%

Risk level

Underlying Fund Fidelity Canadian Asset Allocation Fund




Financials 14 .68%

Energy 7 .92%

Materials 4 .70%



Industrials 3 .29%



Utilities 1 .25%

Health Care 1 .15%

44 .47%

Top 10 Holdings of the underlying fundAs at December 31, 2015


Bonds28.26%




Bonds28.26%



Royal Bank of Canada BCE Inc .

The Toronto-Dominion Bank Metro Inc .

Suncor Energy Inc . Canadian Natural Resources Ltd .

Constellation Software Inc . Brookfield Asset Management Inc .

Enbridge Inc . Loblaw Companies Ltd .

Top 10 holdings represents 21 .43% of the underlying fund’s net assets .



Fund 1 .5 (1 .2) 1 .6 (1 .3) 1 .5 6 .8 8 .7 7 .8 5 .5 6 .7 7 .4Composite index1 (4 .2) (1 .6) (0 .5) (5 .5) (4 .2) 2 .5 4 .3 4 .7 3 .2 4 .7


Fund 1 .5 12 .4 12 .6 5 .0 (3 .2) 12 .3 27 .5 (17 .4) 8 .5 14 .5Composite index1 (4 .2) 9 .7 8 .0 5 .9 (2 .8) 13 .6 24 .0 (20 .7) 7 .8 12 .6

1 S&P/TSX Capped Composite Index (65%), FTSE TMX Canada Universe Bond Index (30%), FTSE TMX Canada 91 Day T-Bill Index (5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



100.00%


- 55 -




Canadian Equity Index (TD)

Commentary

The Fund’s objective is to track the S&P/TSX Composite Total Return Index performance . The Fund is managed based on the philosophy that indexing reduces portfolio risk by investing in a comprehensive range of securities while lowering costs compared with more active approaches .



Investment Advisor

Objectives of the Fund• Seeks long term capital growth through

investments in Canadian equities




Risk level

Underlying Fund TD Emerald Canadian Equity Index Fund




Financials 40 .00%

Energy 19 .26%

Materials 9 .92%

Industrials 8 .65%





Health Care 3 .31%

Utilities 2 .40%

Market Index 0 .22%

104 .72%







Fund (8 .2) (3 .1) (1 .4) (9 .0) (8 .2) 0 .8 4 .7 5 .2 2 .3* 4 .4* 4 .6Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4


Fund (8 .2) 10 .6 12 .9 7 .0 (8 .6)* 17 .5* 35 .1* (32 .8)* 9 .9* 17 .3*Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 35 .1 (33 .0) 9 .8 17 .3

1 S&P/TSX Composite Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .* Simulation of past returns as if the Fund had been in effect for these periods .



100.00%


- 56 -




Dividend

Commentary

The Fund is primarily composed of common stocks of large companies that offer attractive earnings and dividend potential . The investment strategy used to manage this fund is based on a process that combines the bottom-up and top-down approaches . First, the manager uses the top-down approach, which involves carrying out a macroeconomic analysis to determine the economy’s best performing sectors . Then, the manager follows the bottom-up approach, which allows him to select securities according to a value style, giving preference to superior quality Canadian stocks offering regular dividends .



Investment Advisor

Gil Lamothe, CFA

Objectives of the Fund• To invest in stocks that generate regular

dividends (that will be reinvested in the Fund) while ensuring long term capital growth

• Conforms to investment horizons that are sufficiently distant to tolerate the volatility of the market values

Investment styleValue


Short term 0% 25%Canadian equity securities 70% 100%Foreign equity securities 0% 30%

Risk level


Sector Allocation of the FundAs at December 31, 2015


Financials 37 .15%

Energy 18 .22%


Industrials 4 .41%

Utilities 3 .49%

Materials 2 .31%


72 .75%


The Toronto-Dominion Bank 6 .33% Brookfield Asset Management Inc . 4 .19%

Royal Bank of Canada 6 .32% TransCanada Corp . 3 .81%

Bank of Montreal 4 .58% Suncor Energy Inc . 3 .58%

Enbridge Inc . 4 .49% Sun Life Financial Services of Canada Inc . 3 .45%

Canadian National Railway Co . 4 .41% Canadian Imperial Bank of Commerce 3 .41%

44 .57%


U.S. Equity17.33%

Short term and other6.12%Foreign Equity

0.52%


U.S. Equity17.33%


0.52%



Fund (1 .8) (2 .0) 2 .6 (1 .3) (1 .8) 4 .8 8 .9 9 .1 6 .9 7 .1 10 .5Benchmark index1 (7 .8) (3 .1) (1 .7) (8 .3) (7 .8) 1 .8 5 .5 6 .1 2 .9 4 .7


Fund (1 .8) 11 .8 17 .6 9 .9 (1 .5) 14 .6 32 .3 (26 .0) 6 .3 19 .7Benchmark index1 (7 .8) 12 .3 13 .3 8 .1 (9 .1) 13 .8 31 .9 (31 .2) 11 .1 19 .2

1 S&P/TSX 60 Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 57 -




Canadian Dividend (Beutel Goodman)

Commentary

The Fund aims to achieve a balance between high dividend income and capital growth through the application of a highly disciplined value investing approach emphasizing capital preservation, and a focus on absolute return and risk . The Fund seeks to identify and invest in a diversified portfolio of high quality common stocks, preferreds, income trusts and interest bearing securities . The Fund will hold a range of 20 to 45 primarily Canadian securities, although the Fund may also invest in foreign issues . In selecting holdings, the manager relies exclusively on the firm’s internal research . The firm’s highly disciplined value investing approach results in a Fund that performs defensively in volatile markets, while aiming to capture a significant portion of the market’s upside . In addition, the Fund aims to deliver a yield greater than that of its benchmark .


Fund Code: 887Inception date: July 2012

Investment Advisor


Objectives of the Fund• Is invested in equity securities that generate

regular dividends (which are reinvested in the Fund), while ensuring long term capital growth

• Suitable for an investment horizon sufficiently long to tolerate volatility of market values


Investment limits


Min. Max.


Underlying fund

Min. Max.

Cash & Short term 0% 25%Canadian Bond 0% 15%Canadian Equities (Common) 60% 100%Canadian Equities (Preferred) 0% 25%Income Trust 0% 25%Foreign Equities 0% 30%

Risk level

Underlying Fund Beutel Goodman Canadian Dividend Fund




Financials 37 .22%

Energy 7 .81%



Materials 4 .01%

Industrials 3 .22%


69 .70%


The Toronto-Dominion Bank 9 .40% Cenovus Energy Inc . 4 .60%

Royal Bank of Canada 9 .20% Verizon Communications Inc . 4 .00%

Rogers Communications Inc ., Class B 6 .70% Canadian Imperial Bank of Commerce 3 .80%

Bank of Nova Scotia 6 .60% Power Financial Corp . 3 .50%

Kellogg Co . 5 .20% Baxalta Inc . 3 .50%

56 .50%


U.S. Equity23.69%

International Equity6.11%Short term and other

0.50%


U.S. Equity23.69%

International Equity6.11%Short term and other

0.50%


Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years July 2012

Fund 1 .6 (1 .7) 3 .6 1 .0 1 .6 7 .0 13 .8 13 .4* 11 .3* 8 .6* 14 .8Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4


Fund 1 .6 12 .6 28 .8 12 .2* 3 .4* 12 .6* 18 .7* (19 .5)* 5 .7* 17 .0*Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 35 .1 (33 .0) 9 .8 17 .3




100.00%


- 58 -




Canadian Equity Value (PH&N)

Commentary

A diversified, actively managed portfolio that aims to provide long-term capital growth by investing in common shares of Canadian corporations . A majority of the stocks held in the fund will be constituents of the S&P/TSX Capped Composite Index . The fund’s investment process is primarily based in fundamental research while stock selection and decisions are ultimately based on an understanding of the company, its business and its outlook .



Investment Advisor

Doug Raymond Stu Kedwell, CFA

Objectives of the Fund• Long term capital growth mainly through

investments in Canadian equity securities



Investment limits


Min. Max.


Risk level

Underlying Fund PH&N Canadian Equity Value Fund




Financials 41 .96%

Energy 19 .79%

Industrials 6 .06%

Materials 6 .06%





Utilities 2 .27%

Others sectors 0 .95%

94 .70%


Royal Bank of Canada 7 .10% Canadian National Railway Co . 3 .10%

The Toronto-Dominion Bank 6 .50% Bank of Montreal 3 .00%

Bank of Nova Scotia 4 .70% Manulife Financial Corp . 2 .80%

Suncor Energy Inc . 3 .80% BCE Inc . 2 .70%

Brookfield Asset Management Inc . 3 .40% Canadian Natural Resources Ltd . 2 .60%

39 .70%







Fund (5 .8)* (3 .2) 0 .8 (5 .0)* (5 .8)* 3 .5* 7 .5* 9 .0* 6 .2* - 1 .3Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 -


Fund (5 .8)* 13 .6* 16 .0* 13 .7* (4 .3)* 18 .0* - - - -Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 - - - -




100.00%


- 59 -




Canadian Equity (QV)

Commentary

QV Investors Inc . believes investing is the process of buying ownership stakes in businesses run by managers we want as long term partners . They seek to buy our investments at a price calculated to deliver a rate of return superior to the return on equity of Canadian corporations . They believe the study of the business environment can enhance returns by putting values, companies, credit and cultures in a global or thematic context . The elements of the portfolio management are as follows: - Quality, Value, Growth and Diversification - and relate to the management of portfolio risk . Quality is analysis of the integrity of management and corporate finance . Value is the calculation of a security’s price relative to its earning power and inflation . Growth in capital is the objective . Diversification is the means to modify risk .



Investment Advisor

Darren Dansereau, CFA, CIM Ian Cooke, CFA

Objectives of the Fund• Seeks long term capital appreciation

by investing in a diversified portfolio of Canadian equities



Investment limits


Min. Max.


Risk level

Underlying Fund QV Canadian Equity Fund




Financials 23 .70%

Energy 14 .60%

Industrials 12 .70%


Utilities 8 .50%

Materials 6 .90%




91 .50%


The Toronto-Dominion Bank 5 .40% Canadian National Railway Co . 4 .60%

Suncor Energy Inc . 5 .20% ATCO Ltd ., Class I, NV 4 .50%

Canadian Imperial Bank of Commerce 5 .20% CGI Group Inc ., Class A, SV 4 .50%

Loblaw Companies Ltd . 4 .90% Canadian Tire Corporation Ltd . 4 .30%

Industrial Alliance, Insurance and Financial Services Inc . 4 .90% Canadian Natural Resources Ltd . 4 .20%

47 .70%







Fund (5 .3)* (3 .9) 0 .6 (4 .2)* (5 .3)* 2 .1* 9 .7* 10 .1* 7 .7* - 1 .2Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 -


Fund (5 .3)* 10 .1* 26 .7* 11 .5* (1 .7)* 15 .4* 21 .2* (18 .4)* 5 .3* -Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 35 .1 (33 .0) 9 .8 -




100.00%


- 60 -




Canadian Equity Selexia (Fiera Capital)

Commentary

The management team favours a truly active management style where significant deviations from the index often prevail . Although both are important, security selection takes precedence over sector selection . Indeed, sector deviations are often the result of the security selection process . The team clearly favours “value” securities and sectors over their “momentum” counterparts and has an aversion to expensive securities or securities with excessive debt levels . Instead, it prefers to focus on securities that offer attractive thematic characteristics or specific catalysts likely to have a favourable impact on future earnings .



Investment Advisor

Portfolio sub-manager

Jacques ChartrandClaude Boulos, CA, CBV, MBA





Investment limits


Min. Max.


Risk level

Underlying Fund Fiera Canadian Equity Fund - Selexia



Canadian National Railway Co . 5 .62% Canadian Natural Resources Ltd . 4 .63%

Royal Bank of Canada 5 .57% Linamar Corp . 4 .48%

The Toronto-Dominion Bank 5 .49% Manulife Financial Corp . 4 .22%

Magna International Inc . 5 .32% Bank of Nova Scotia 3 .72%

CGI Group Inc ., Class A, SV 4 .73% Suncor Energy Inc . 3 .52%

47 .30%

Canadian Stock Account99.11%


Canadian Stock Account99.11%




Financials 33 .09%

Energy 18 .63%

Industrials 16 .47%



Materials 2 .22%


99 .11%



Fund (10 .0) (4 .7) (0 .8) (11 .0) (10 .0) (2 .2) 6 .8 8 .4 4 .0 5 .5 7 .3Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4



1 S&P/TSX Composite Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 61 -




Canadian Focused Equity (Pyramis)

Commentary

The Fund’s investment strategy uses a bottom-up, fundamental approach designed to deliver the Pyramis Canadian equity research team’s best ideas . The portfolio manager constructs a concentrated portfolio based on fundamental research inputs where active sector and capitalization allocation are the result, primarily, of bottom-up stock selection . The fundation of this research is our large team of research analysts dedicated solely to the Canadian equity market .

Each analyst is assigned an industry group in the S&P/TSX Capped Composite Index and is responsible for rating the top stock ideas within his or her sector . The portfolio manager is responsible for constructing the portfolio and ensuring that the strategy adheres to the stated investment guidelines .



Investment Advisor

Joe Overdevest Andrew Marchese




Investment styleCore with a growth bias

Investment limits


Min. Max.


Risk level

Underlying Fund Pyramis Canadian Focused Equity Fund




Financials 35 .09%

Energy 15 .11%


Materials 10 .41%



Industrials 6 .12%


Health Care 3 .28%

99 .26%


Royal Bank of Canada 8 .69% Alimentation Couche-Tard Inc ., Class B, SV 4 .53%

The Toronto-Dominion Bank 7 .98% Sun Life Financial Services of Canada Inc . 4 .10%

Brookfield Asset Management Inc ., Class A 6 .96% Intact Financial Corp . 4 .07%

Canadian National Railway Co . 5 .39% Franco-Nevada Corp . 4 .02%

Suncor Energy Inc . 4 .57% Restaurant Brands International Inc . 4 .00%

54 .31%







Fund 2 .2 (2 .9) (1 .0) (4 .0) 2 .2 7 .2 14 .0 13 .0* 8 .9* 8 .5* 12 .7Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4


Fund 2 .2 12 .4 28 .9 10 .1* (6 .0)* 17 .9* 34 .5* (30 .0)* 16 .3* 14 .6*Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 35 .1 (33 .0) 9 .8 17 .3

1 S&P/TSX Capped Composite Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .* Simulation of past returns as if the Fund had been in effect for these periods .



100.00%


- 62 -




Canadian Equity Low Volatility (TD)

Commentary

The philosophy underlying the Fund is that capitalization-weighted market indices are not efficient and that portfolio optimization techniques focusing on minimizing expected return volatility can provide market-like returns over the long term with less volatility than the market capitalization-weighted index .

The manager seeks to construct a diversified portfolio with less return volatility than the S&P/TSX Composite Index . The Fund is expected to outperform in declining market environments . Note that the tracking error will be high relative to the index .


Fund Code: 888First offering: November 2012Inception date: August 2012

Investment Advisor

Objectives of the Fund• Seeks long term capital growth mainly

through investments in Canadian equity securities


Investment styleQuantitative

Investment limits


Min. Max.


Risk level

Underlying Fund TD Emerald Low Volatility Canadian Equity Pooled Fund Trust




Financials 25 .93%


Energy 16 .24%



Utilities 8 .00%

Industrials 6 .59%


Materials 2 .14%

103 .88%


Metro Inc . 3 .17% Thomson Reuters Corp . 3 .06%

Manitoba Telecom Services Inc . 3 .14% Fortis Inc . 2 .97%

BCE Inc . 3 .13% Shaw Communications Inc ., Class B 2 .75%

TransCanada Corp . 3 .09% Bank of Montreal 2 .64%

Intact Financial Corp . 3 .06% Gildan Activewear Inc . 2 .60%

29 .61%






Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Aug. 2012

Fund (4 .6) (2 .9) (2 .1) (3 .9) (4 .6) 7 .4 9 .3 9 .9* 10 .9* - 9 .7Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 -


Fund (4 .6) 20 .8 13 .2 11 .8* 15 .1* 20 .0* - - - -Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 - - - -




100.00%


- 63 -




Canadian Equity All Cap (Triasima)

Commentary

The Canadian Equity All Cap strategy invests in stock securities and trust units of Canadian companies . The portfolio is focused through 40 to 65 holdings and is well diversified across the various sectors of the Canadian equity market . Securities are chosen amongst a wide spectrum of market capitalizations, including small cap securities that may represent from 0% to 15% of the portfolio . The investment performance objective of the strategy is to surpass the return of the S&P/TSX Composite Index .



Investment Advisor

Edward Antczak, MBA, CFAScott Collins, CFARedouane Khireddine, CFA




Investment styleBlend (Growth and Value)

Investment limits


Min. Max.


Risk level

Underlying Fund Triasima Canadian All Capitalisation Funds



Alimentation Couche-Tard Inc ., Class B, SV 5 .70% Kinaxis Inc . 3 .20%

CCL Industries Inc ., Class B, NV 4 .10% Onex Corp ., SV 3 .10%

Constellation Software Inc . 3 .70% Dollarama Inc . 2 .50%

The Toronto-Dominion Bank 3 .30% Sun Life Financial Services of Canada Inc . 2 .50%

Loblaw Companies Ltd . 3 .30% Linamar Corp . 2 .50%

33 .90%







Fund 1 .6* (0 .8) 0 .7 (1 .1)* 1 .6* 5 .4* 10 .7* 9 .8* 7 .5* - 0 .1Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 -


Fund 1 .6* 9 .3* 22 .3* 7 .1* (1 .5)* 22 .1* - - - -Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 - - - -




100.00%




Financials 23 .30%


Materials 12 .40%



Energy 10 .50%

Industrials 5 .10%

Utilities 2 .80%

89 .50%

- 64 -




Canadian Equity Growth

Commentary

The Fund is primarily invested in medium and large capitalization companies, and a small proportion of the portfolio is invested in small capitalization companies . The manager looks for securities that present a good growth profile, but is concerned about the price that he pays to acquire them . He relies on a “self-generated” cash flow model to select securities, and pays special attention to risk management in terms of sectors, capitalizations and primary positions in the benchmark index . The Fund remains diversified in terms of stock market sectors and can occasionally contain foreign securities .



Investment Advisor

Marc Gagnon, MBA, CFA




Investment styleGrowth



Risk level




Financials 30 .10%

Energy 13 .37%

Industrials 9 .77%

Materials 6 .91%





Utilities 2 .04%

80 .08%


Royal Bank of Canada 6 .15% Manulife Financial Corp . 2 .55%


Canadian National Railway Co . 3 .78% BCE Inc . 2 .33%

Bank of Nova Scotia 3 .69% Brookfield Asset Management Inc . 2 .27%

Suncor Energy Inc . 2 .87% Alimentation Couche-Tard Inc ., Class B, SV 2 .25%

33 .95%


U.S. Equity9.79%


Foreign Equity2.43%


U.S. Equity9.79%


Foreign Equity2.43%








- 65 -




Canadian Equity Q Growth (CC&L)

Commentary

The investment objective of the is to generate returns that exceed the S&P/TSX Composite Index by 2% per year over a market cycle .

To reach this objective, the portfolio manager applies a continuous quantitative evaluation of all investment opportunities based on fundamental criteria across stocks and industries .

Proprietary portfolio construction framework dynamically evaluates growth opportunities across all stocks in the investable universe on a daily basis while maintaining value characteristics that are similar to the benchmark .


Fund Code: 899First offering: November 2015Inception date: May 2015

Investment Advisor

Dion Rosema

Chris Archbold

Objectives of the Fund• Long term capital growth through

investments in Canadian Equity securities


Investment styleQuantitative (Growth)

Investment limits


Min. Max.


Underlying Fund

Min. Max.

Short term 0% 5%Canadian equity securities 95% 100%

Risk level

Underlying Fund CC&L Group Canadian Q Growth Fund



Royal Bank of Canada 5 .88% Sun Life Financial Services of Canada Inc . 3 .09%

Suncor Energy Inc . 4 .70% CGI Group Inc ., Class A, SV 3 .05%

Brookfield Asset Management Inc . 4 .29% Canadian National Railway Co . 2 .97%

Alimentation Couche-Tard Inc ., Class B, SV 3 .79% Valeant Pharmaceuticals International Inc . 2 .86%

The Toronto-Dominion Bank 3 .73% Constellation Software Inc . 2 .56%

36 .92%



Fund (4 .8)* (2 .1) (0 .6) (5 .5) (4 .8)* 3 .1* 10 .0* 9 .7* 6 .4* 6 .5* (8 .7)Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4


Fund (4 .8)* 11 .6* 25 .4* 8 .7* (5 .9)* 22 .7* 28 .8* (32 .8)* 13 .6* 14 .5*Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 35 .1 (33 .0) 9 .8 17 .3




Financials 32 .61%

Materials 11 .22%

Energy 10 .95%




Industrials 8 .39%

Health Care 4 .40%


Utilities 0 .51%

99 .59%








100.00%

- 66 -




Canadian Equity (Jarislowsky)

Commentary

The Fund’s investment philosophy is to look for growth at a reasonable price . Thus, it seeks to obtain growth of capital while reducing the level of risk . The Fund is invested in three groups of securities . More than half the portfolio is invested in group I securities, which represent large cap companies that are leaders in their field, in non-cyclical industries . Slightly less than one third of the portfolio is invested in group II securities, i .e ., companies belonging to cyclical industries and which carry out their activities on international markets . Finally, less than 10% of the portfolio is invested in group III securities, which contains smaller-cap companies or special situations .



Investment Advisor

Strategy committee




Investment styleGrowth at a reasonable price

Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund JF Canadian Equity Fund




Financials 30 .56%

Energy 22 .29%

Industrials 11 .44%




Materials 3 .97%

Utilities 1 .60%

97 .10%


The Toronto-Dominion Bank 8 .18% Suncor Energy Inc . 3 .97%

JF Special Equity Fund 7 .91% Manulife Financial Corp . 3 .71%

Royal Bank of Canada 6 .56% Enbridge Inc . 3 .54%

Bank of Nova Scotia 5 .48% Canadian Natural Resources Ltd . 3 .30%

Canadian National Railway Co . 4 .55% Open Text Corp . 3 .19%

50 .39%













100.00%


- 67 -




Canadian Equity Growth (MFS)

Commentary

The Fund aims to provide investors with a superior real rate of return, primarily through long term capital appreciation by investing in a diversified portfolio of Canadian equities . The stocks are chosen for their growth potential . This means the stock’s expected earnings growth is faster than the expected earnings growth for the overall market . Canadian Equity Growth (MFS) Fund is comprised of 35 to 55 securities, generally selected from the largest one hundred companies in the Canadian market although smaller companies with outstanding growth potential are also included . Emphasis is usually on non-cyclical companies, due to their stable long term earnings potential .



Investment Advisor

Bruce Murray, CFANicole Zatlyn





Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund MFS Canadian Equity Growth Fund




Financials 31 .82%

Energy 17 .75%


Industrials 12 .74%

Materials 7 .68%


Health Care 4 .32%



Utilities 0 .74%

98 .34%



Royal Bank of Canada 7 .69% Valeant Pharmaceuticals International Inc . 3 .62%

Canadian National Railway Co . 5 .85% Enbridge Inc . 3 .56%

Suncor Energy Inc . 4 .18% Alimentation Couche-Tard Inc ., Class B, SV 3 .15%

Bank of Nova Scotia 4 .16% Thomson Reuters Corp . 2 .80%

46 .61%







Fund (3 .7) (3 .0) (2 .4) (7 .5) (3 .7) 5 .0 9 .7 9 .9 2 .7 4 .9 6 .2Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4



1 S&P/TSX Capped Composite Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 68 -




Canadian Equity Value

Commentary

The Fund is composed mainly of securities of large Canadian companies and includes a portion of foreign equities . It adheres to a value-oriented investment style . After conducting a macroeconomic analysis to identify the top performing sectors of the Canadian economy, the manager searches the market, stock by stock, seeking companies that, according to his analysis, have a stock market price below their intrinsic value . In other words, he looks for undervalued securities, selecting them according to criteria such as their price/earnings ratio, their price-to-book ratio and their intrinsic value .



Investment Advisor

David Caron, M. Sc., CFA, CPA, CGA, FRM







The maximum invested in an economic sector is limited to the higher of 20% of the Fund’s assets and twice this sector’s weighting on the S&P/TSX Composite Index.

The maximum that may be invested in the same company’s stocks is 10% of the Fund’s assets.

Risk level




Financials 21 .24%

Energy 11 .20%

Industrials 5 .85%

Materials 5 .00%


Canadian Fund Units 3 .68%




Market Index 0 .89%

Utilities 0 .32%

58 .73%


Royal Bank of Canada 4 .06% Suncor Energy Inc . 2 .17%


Canadian National Railway Co . 2 .50% Sun Life Financial Services of Canada Inc . 1 .61%

Manulife Financial Corp . 2 .44% Canadian Imperial Bank of Commerce 1 .46%

Bank of Nova Scotia 2 .28% BCE Inc . 1 .38%

23 .71%



U.S. Equity15.87%

Short term and other6.27%Bonds

0.32%



U.S. Equity15.87%

Short term and other6.27%Bonds

0.32%



Fund (1 .4) (1 .4) 2 .7 (4 .5) (1 .4) 2 .1 6 .8 7 .0 3 .3 4 .2 9 .3Composite index1 (2 .4) (1 .7) 0 .8 (5 .1) (2 .4) 3 .8 7 .3 7 .4 4 .1 5 .0


Fund (1 .4) 5 .8 16 .8 7 .6 (10 .1) 13 .5 30 .6 (30 .2) 4 .2 18 .2Composite index1 (2 .4) 10 .4 14 .7 7 .8 (8 .2) 16 .5 32 .6 (32 .3) 8 .0 17 .6

1 S&P/TSX Composite Index (70%), MSCI - World Index (Can . $) (net ret .) (20%), FTSE TMX Canada 91 Day T-Bill Index (10%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .


- 69 -




Fidelity True North®

Commentary

The Fidelity True North Fund seeks long term capital appreciation by investing in equity securities of growth-oriented companies at reasonable prices . The first screen criteria is the price/earnings growth (PEG ratio) . However, PEG alone tells the manager little about the overall attractiveness of an investment opportunity . After the first screen is done, the focus goes on the balance sheet . The manager needs to see solid cash flow generation and earnings yield . In terms of risk management, the manager manages relative to the benchmark but will take the necessary deviations in order to generate the attractive alpha (value added vs . index) . The manager is well supported by the analysts of Team Canada .



Investment Advisor

Maxime Lemieux





Investment limits


Min. Max.


Risk level

Underlying Fund Fidelity True North® Fund




Financials 18 .10%

Energy 11 .77%




Industrials 8 .55%


Health Care 3 .34%

Materials 3 .07%

Utilities 0 .52%

77 .95%


The Toronto-Dominion Bank CGI Group Inc ., Class A, SV

Loblaw Companies Ltd . Suncor Energy Inc .

Canadian National Railway Co . Alimentation Couche-Tard Inc ., Class B, SV

Rogers Communications Inc ., Class B Gildan Activewear Inc .

Manulife Financial Corp . Metro Inc .




Foreign Equity8.39%



Foreign Equity8.39%



Fund 0 .4 (1 .4) 0 .7 (2 .4) 0 .4 8 .0 13 .5 12 .8 8 .7 8 .1 10 .5Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4


Fund 0 .4 16 .1 25 .3 10 .8 (6 .0) 15 .1 33 .5 (32 .7) 15 .3 20 .3Benchmark index1 (8 .3) 10 .6 13 .0 7 .2 (8 .7) 17 .6 35 .1 (33 .0) 9 .8 17 .3

1 S&P/TSX Capped Composite Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 70 -




Canadian Equity Responsible (MFS)

Commentary

The Canadian Equity Responsible (MFS) Fund is comprised of 45 to 85 securities . It is a screened version of the existing Canadian Equity Growth (MFS) Fund . The screens exclude: 1) companies that derive more than 10% of their gross annual revenue from the manufacture and sale of tobacco products, alcoholic beverages, armaments, pornography, or from the provision of gaming facilities; 2) companies with significant operations and/or suppliers that do not adhere to local employment standards and that do not address the issue; 3) companies whose negative impact on the environment is greater than the average of their peers .



Investment Advisor

Bruce Murray, CFAJeff Morrison, CFANicole Zatlyn





Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund MFS Responsible Canadian Equity Fund




Royal Bank of Canada 7 .44% Valeant Pharmaceuticals International Inc . 3 .64%

Canadian National Railway Co . 5 .38% Canadian Natural Resources Ltd . 3 .42%

Suncor Energy Inc . 4 .95% TransCanada Corp . 2 .81%

Bank of Nova Scotia 4 .42% Agrium Inc . 2 .38%

46 .44%







Financials 35 .09%

Energy 17 .26%

Industrials 12 .52%

Materials 9 .79%



Health Care 4 .38%



Utilities 0 .70%

99 .09%



Fund (4 .4) (3 .0) (1 .9) (7 .0) (4 .4) 4 .5 9 .2 10 .2 4 .3 5 .1 6 .6Benchmark index1 (8 .3) (3 .1) (1 .4) (9 .1) (8 .3) 0 .7 4 .6 5 .3 2 .3 4 .4






100.00%


- 71 -




Canadian Equity Small Cap (Montrusco)

Commentary

The fundamental investment objective of the fund is to achieve long term growth of capital through the investment of its assets primarily in issues of Canadian small cap corporations . The manager focuses on growth companies that have a track record of earnings and cash flow .



Investment Advisor

Christian Godin, BBA, MSC


investments in small capitalization Canadian companies



Investment limits


Min. Max.


Risk level

Underlying Fund Montrusco Bolton Canadian Small Cap. Equity Fund




Materials 19 .57%

Financials 15 .35%

Industrials 13 .95%

Energy 13 .69%



Health Care 6 .26%


96 .12%


Osisko gold royalties Ltd . 5 .43% Kinaxis Inc . 4 .09%

Premium Brands Holdings Corp . 4 .47% Home Capital Group Inc . 3 .66%

Concordia Healthcare Corp . 4 .36% Winpak Ltd . 3 .58%

Lassonde Industries Inc ., Class A, SV 4 .24% Laurentian Bank of Canada 3 .03%

Parex Resources Inc . 4 .24% The Descartes Systems Group Inc . 2 .93%

40 .03%







Fund (11 .8) (2 .7) 1 .6 (12 .3) (11 .8) (5 .9) 1 .8 2 .4 (0 .4) 5 .8 7 .6Benchmark index1 (13 .3) (1 .6) 1 .1 (14 .2) (13 .3) (8 .0) (3 .1) (2 .9) (5 .7) 0 .0


Fund (11 .8) 0 .4 19 .2 4 .2 (11 .1) 39 .6 68 .3 (43 .6) 17 .3 15 .2Benchmark index1 (13 .3) (2 .3) 7 .6 (2 .2) (16 .4) 35 .1 62 .4 (45 .5) 0 .9 11 .6

1 S&P/TSX SmallCap Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 72 -




Canadian Equity Small Cap (QV)

Commentary

QV Investors Inc . believes investing is the process of buying ownership stakes in businesses run by managers we want as long term partners . They seek to buy our investments at a price calculated to deliver a rate of return superior to the return on equity of Canadian corporations . They believe the study of the business environment can enhance returns by putting values, companies, credit and cultures in a global or thematic context . The elements of the portfolio management are as follows: - Quality, Value, Growth and Diversification - and relate to the management of portfolio risk . Quality is analysis of the integrity of management and corporate finance . Value is the calculation of a security’s price relative to its earning power and inflation . Growth in capital is the objective . Diversification is the means to modify risk .



Investment Advisor



investments in small capitalization Canadian companies



Investment limits


Min. Max.


Risk level

Underlying Fund IA Clarington Canadian Small Cap. Fund




Industrials 23 .92%

Financials 23 .82%

Energy 17 .40%



Materials 7 .23%



95 .69%


Manitoba Telecom Services Inc . 5 .81% New Flyer Industries Inc . 4 .33%

Canadian Western Bank 5 .75% Lassonde Industries Inc ., Class A, SV 4 .21%

E-L Financial Corp . Ltd . 5 .44% Richelieu Hardware Ltd . 3 .61%

Laurentian Bank of Canada 4 .91% Secure Energy Services Inc . 3 .21%

AltaGas Ltd . 4 .36% Leon's Furniture Ltd . 3 .17%

44 .80%


U.S. Equity2.17%Short term and other

2.14%


U.S. Equity2.17%Short term and other

2.14%



Fund (4 .2) (3 .0) 2 .0 (5 .2) (4 .2) 2 .2 13 .8 16 .2 12 .6 9 .4* 9 .2Benchmark index1 (13 .3) (1 .6) 1 .1 (14 .2) (13 .3) (8 .0) (3 .1) (2 .9) (5 .7) 0 .0


Fund (4 .2) 9 .0 41 .3 23 .5 (0 .5) 16 .9 33 .1 (31 .0) 12 .0 12 .8*Benchmark index1 (13 .3) (2 .3) 7 .6 (2 .2) (16 .4) 35 .1 62 .4 (45 .5) 0 .9 11 .6

1 S&P/TSX SmallCap Index . Please refer to the Legal Notices at the end of this publication for more information about the Index .*Simulation of past returns as if the Fund had been in effect for these periods .



100.00%


- 73 -




Commentary

BlackRock uses an index approach to manage this fund . The Fund aims to closely track the MSCI ACWI Ex-Canada Index by investing in a broadly diversified portfolio of securities of companies located arround the world, including emerging countries .



Investment Advisor

Objectives of the Fund• To reproduce the return of the MSCI ACWI

Ex-Canada Index


Investment limits


Min. Max.


Risk level

Underlying Fund

BlackRock CDN MSCI ACWI Ex-CanadaIndex Fund

Global Equity Index ACWI (BlackRock)


North America54.71%

Europe23.37%

Asia and Pacific19.92%

Latin America1.17%

Mid-east and Africa0.60%


North America54.71%

Europe23.37%


Latin America1.17%





Fund 18 .1 2 .5 9 .2 6 .7 18 .1 15 .9 20 .4 18 .8* 13 .7* - 19 .7Benchmark index1 18 .1 2 .6 9 .2 6 .3 18 .1 15 .8 21 .0 19 .1 13 .9 -


Fund 18 .1 13 .7 30 .2 14 .0* (4 .6)* 6 .2* 12 .8* (26 .4)* - -Benchmark index1 18 .1 13 .7 31 .9 13 .9 (4 .8) 6 .5 13 .7 (27 .5) - -

1 MSCI ACWI Ex-Canada Index (Can . $) (Reuters) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .



iShares Core MSCI Emerging Markets ETF 9 .91% Johnson & Johnson 0 .87%

Apple Inc . 1 .79% Amazon .com Inc . 0 .79%

Microsoft Corp . 1 .35% Wells Fargo & Co . 0 .77%

Exxon Mobil Corp . 0 .99% Berkshire Hathaway Finance Corp ., Class B 0 .76%

General Electric Co . 0 .90% JPMorgan Chase & Co . 0 .74%

18 .87%


Global Equity Portfolio

Financials 20 .79%


Health Care 12 .75%


Industrials 10 .65%


Energy 5 .86%

Materials 4 .35%


Utilities 3 .26%

99 .77%



100.00%


- 74 -




Global Equity

Commentary

The Fund uses a combination of top-down analysis for geographic and sector allocation, and bottom-up analysis for security selection . Selects equity securities from issuers considered to be leaders in their respective industries that possess above average earnings growth and stability, management quality and experience, as well as overall market share . Assess the growth potential of each industry and economic region, including the specific product(s), market size, as well as their relationship to the long term economic growth potential of various economic regions .


Fund Code: 707First offering: November 2011Inception date: July 2009

Investment Advisor

Lead Manager: Pierre Trottier, B. Sc. act., MBA, CFA

Co-Managers: Sevgi Ipek, CFAPierre Chapdelaine, CFA

Objectives of the Fund• Targets long term capital appreciation

through investments in equity securities from around the world

• Conforms to an investment horizon that is long enough to endure the volatility of the market values


Investment limits


Min. Max.


Risk level

Underlying Fund IA Clarington Global value fund



Microsoft Corp . 1 .98% The Walt Disney Co . 1 .26%

Exxon Mobil Corp . 1 .84% MetLife Inc . 1 .25%

Apple Inc . 1 .72% General Electric Co . 1 .23%

JPMorgan Chase & Co . 1 .32% United Parcel Service Inc ., Class B 1 .23%

SunTrust Banks Inc . 1 .26% Royal Dutch Shell PLC, Class A 1 .22%

14 .31%

Equity99.26%


Equity99.26%






Fund 23 .4 13 .8 35 .8 14 .3 (8 .2) 7 .4 - - - -Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 - - - -

1 MSCI - World Index (Can . $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 75 -




Global Equity (Hexavest)

Commentary

The Fund is invested in equity securities related to the global stock markets . The Fund is managed according to an approach that consists of actively managing each decisional level (regional allocation, choice of country, sector allocation, securities selection and management of currencies) in order to diversify the sources of value added and reduce the risk related to the portfolio . The managers place great importance in the preservation of their clients capital . The main decisions are guided by a fundamental analysis of macroeconomic factors (Top-Down style) and are backed by internally developed quantitative models .


Fund Code: 500First offering: January 2009Inception date: August 2005

Investment Advisor






Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 10%Equity 90% 100%Currency 40% 100%

Risk level

Underlying Fund Hexavest World Fund



AT&T Inc . 2 .51% Procter & Gamble Co . 1 .75%

Pfizer Inc . 2 .33% Microsoft Corp . 1 .69%

Verizon Communications Inc . 2 .22% Wal-Mart Stores Inc . 1 .49%

Johnson & Johnson 2 .06% The Coca-Cola Co . 1 .46%

The Southern Co . 2 .03% McDonald's Corp . 1 .31%

18 .85%

North America57.19%


Europe16.04%



Latin America0.66%

North America57.19%


Europe16.04%



Latin America0.66%


Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Aug. 2005



Fund 20 .2 15 .0 32 .5 9 .8 0 .1 3 .0 10 .5 (8 .9) (9 .9) 18 .4Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 11 .1 (26 .5) (7 .5) 20 .0




100.00%


- 76 -




Global Equity (C$-Hedged) (Hexavest)

Commentary

The Fund will seek to reduce foreign currency risks through the use of derivative instruments, thereby limiting the impact of currency movements on the Fund . The Fund is invested in equity securities related to the global stock markets . The Fund is managed according to an approach that consists of actively managing each decisional level (regional allocation, choice of country, sector allocation, securities selection and management of currencies) in order to diversify the sources of value added and reduce the risk related to the portfolio . The managers place great importance in the preservation of their clients’ capital . The main decisions are guided by a fundamental analysis of macroeconomic factors (Top-Down style) and are backed by internally developed quantitative models .



Investment Advisor






Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 10%Equity 90% 100%Currency 0% 100%

Risk level

Underlying Fund Hexavest World Fund


Currency exposure of the underlying fundAs at December 31, 2015

Canada 97 .75%

United States (1 .23)%

Euro 2 .19%

Europe - Other (0 .28)%

Japan 0 .06%

Pacific - Other (0 .96)%

Emerging markets 2 .47%

100 .00%


AT&T Inc . 2 .51% Procter & Gamble Co . 1 .75%

Pfizer Inc . 2 .33% Microsoft Corp . 1 .69%

Verizon Communications Inc . 2 .22% Wal-Mart Stores Inc . 1 .49%

Johnson & Johnson 2 .06% The Coca-Cola Co . 1 .46%

The Southern Co . 2 .03% McDonald's Corp . 1 .31%

18 .85%

North America57.19%


Europe16.04%



Latin America0.66%

North America57.19%


Europe16.04%



Latin America0.66%



Fund 2 .6 0 .2 5 .2 0 .0 2 .6 6 .7 13 .1 13 .0 9 .7 - 9 .4Benchmark index1 2 .1 (2 .2) 6 .2 (2 .0) 2 .1 5 .9 13 .0 13 .7 9 .6 -


Fund 2 .6 11 .1 27 .0 12 .5 (2 .4) 7 .5 - - - -Benchmark index1 2 .1 9 .8 28 .9 15 .7 (5 .5) 10 .0 - - - -

1 MSCI - World Index (Local $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 77 -




Global Equity (QV)

Commentary

The portfolio manager selects the best large companies outside of Canada by employing a “bottom-up” approach focusing primarily on corporate analysis and fundamental valuation with a secondary assessment of a country’s competitive position, currency, and economic growth prospects . The businesses must also have the ability to pay and increase dividends . The portfolio focuses on long term ownership of companies that have sustainable competitive advantages, and is typically focused of 25-40 mid and large cap companies operating in developed countries around the world that differs from the index .



Investment Advisor






Investment limits


Min. Max.


Risk level

Underlying Fund IA Clarington Global Equity Fund



AFLAC Inc . 4 .77% Procter & Gamble Co . 3 .98%

Wells Fargo & Co . 4 .61% American Express Co . 3 .71%

Berkshire Hathaway Finance Corp ., Class B 4 .58% Citigroup Inc . 3 .69%

Chevron Corp . 4 .25% AT&T Inc . 3 .39%

Microsoft Corp . 4 .06% Royal Mail PLC 3 .38%

40 .42%

North America66.17%

Europe19.39%

Asia7.96%


North America66.17%

Europe19.39%

Asia7.96%




Fund 11 .4 0 .5 5 .6 3 .8 11 .4 11 .3 15 .5 15 .5 11 .8 6 .1* 4 .2Benchmark index1 18 .3 2 .0 9 .0 7 .2 18 .3 16 .4 19 .2 17 .7 13 .8 6 .0


Fund 11 .4 11 .2 24 .5 15 .7 (2 .2) 11 .7 18 .3 (37 .9) (1 .0) 28 .0*Benchmark index1 18 .3 14 .6 24 .9 13 .4 (0 .7) 7 .3 27 .0 (40 .6) (2 .1) 18 .6

1 Since July 1, 2014: MSCI - World Index (Can . $) (net ret .) Before July 1, 2014: S&P Citigroup High Income Equity Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .




100.00%


- 78 -




Global Equity (Sprucegrove)

Commentary

Sprucegrove aims to offer their clients a higher than average long term return . Their investment strategy for equities rests on the actual value of securities . It emphasizes long term investments and favours individual securities using the bottom-up approach, backed by its research . Country and sector selection are secondary in this selection method . Portfolio securities must meet their quality standards: above-average return for long periods, solid financial foundation, recognized management and potential growth of sales, earnings and price . Their evaluation criteria include normalized price/earnings ratio and price/book value ratio .



Investment Advisor






Investment limits


Min. Max.


Underlying fund

Min. Max.

Short term 0% 10%Foreign equity securities 90% 100%

Risk level

Underlying Fund Sprucegrove Global Pooled Fund



Markel Corp . 4 .50% Johnson & Johnson 1 .90%

CRH PLC 2 .50% Procter & Gamble Co . 1 .90%

Apache Corp . 2 .40% China Mobile Ltd . 1 .80%

Wells Fargo & Co ., Pfd ., Series L 2 .20% MDU Resources Group, Inc . 1 .80%

Berkshire Hathaway Finance Corp ., Class B 2 .00% Banco Santander SA 1 .70%

22 .70%

North America44.55%

Europe30.69%




Latin America0.53%

North America44.55%

Europe30.69%




Latin America0.53%



Fund 10 .7 0 .5 7 .4 2 .7 10 .7 10 .9 17 .7 16 .0 11 .7* 5 .9* 15 .5Benchmark index1 18 .3 2 .0 9 .0 7 .2 18 .3 16 .3 22 .4 20 .0 14 .9 6 .8


Fund 10 .7 11 .1 32 .5 11 .2 (4 .0)* 9 .4* 13 .3* (25 .5)* (12 .9)* 26 .6*Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 11 .1 (26 .5) (7 .5) 20 .0





100.00%


- 79 -




Global Equity (Templeton)

Commentary

The manager of this Fund favours a bottom-up approach, a vigorous investment method based on value and patience . The Fund’s value style means that the manager looks for securities that are undervalued by the market and have strong growth potential . The securities in the portfolio are therefore securities of established companies with mid to large market capitalizations, from different countries around the world . The allocation of these various countries is primarily a consequence of the manager’s bottom-up approach rather than his forecasts with respect to different areas of the world .



Investment Advisor

Peter M. Moeschter, MBA, CFA





Investment limits


Min. Max.


Risk level

Underlying Fund Templeton Master Trust Fund, Series 1



Microsoft Corp . 3 .53% HSBC Holdings PLC 2 .25%

Teva Pharmaceutical Industries Ltd ., Sponsored ADR 2 .54% Samsung Electronics Co . Ltd . 2 .23%

Allergan Inc . 2 .44% Citigroup Inc . 2 .21%

JPMorgan Chase & Co . 2 .36% Amgen Inc . 2 .17%

Nissan Motor Co . Ltd . 2 .28% Gilead Sciences Inc . 2 .16%

24 .17%

Europe52.02%

North America46.73%




Europe52.02%

North America46.73%








Fund 15 .5 10 .3 44 .9 19 .2 (8 .1) 2 .4 15 .2 (28 .9) (6 .3) 27 .7Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 11 .1 (26 .5) (7 .5) 20 .0




100.00%


- 80 -




Global Equity (Aberdeen)

Commentary

Aberdeen’s global equity strategy is built around a high conviction “best ideas” approach, designed to allow their Global Equity Team to capitalize on the expertise of their regional equity research teams .

As a bottom-up stock picking manager, Aberdeen believes that investing across the globe provides a wealth of opportunities .

It offers direct access to the very best and strongest companies from around the world . Such companies, as well as offering performance potential, are also well positioned to respond to a constantly changing economic and business environment .

By giving their fund managers free rein to invest anywhere in the global community, they are providing them with greater opportunities to deliver strong performance .



Investment Advisor





Investment styleCore with a value bias

Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund Aberdeen Canada Global Equity Fund



Roche Holdings AG 4 .00% British American Tobacco PLC 3 .10%

Novartis AG, ADR 3 .80% Pepsico Inc . 3 .10%

CVS Health Corp . 3 .80% Samsung Electronics Co . Ltd . 3 .00%

EOG Resources Inc . 3 .70% Japan Tobacco Inc . 2 .80%

Taiwan Semiconductor Manufacturing Co . Ltd . 3 .30% Shin-Etsu Chemical Co . Ltd . 2 .60%

33 .20%

Europe35.30%

North America35.10%


Latin America4.60%



Europe35.30%

North America35.10%


Latin America4.60%





Fund 5 .2 0 .5 5 .7 (1 .0) 5 .2 7 .9 12 .3* 12 .6* 10 .4* - 8 .7Benchmark index1 18 .3 2 .0 9 .0 7 .2 18 .3 16 .3 22 .4 20 .0 14 .9 -


Fund 5 .2 10 .6 21 .6* 13 .7* 2 .0* 6 .1* 12 .2* - - -Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 11 .1 - - -





100.00%


- 81 -




Global Research Equity (MFS)

Commentary

The Fund will be invested primarily in global companies that represent the best ideas of the global research sector teams . The Fund is designed to be broadly diversified by sector with the flexibility to invest across regions, industries, styles and market capitalizations . The Fund is generally comprised of 125 to 175 securities .



Investment Advisor

Michael Cantara, CFABen Kottler, CFAJoseph MacDougall, CFA





Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund MFS Global Research Fund



Danaher Corp . 1 .81% Visa Inc ., Class A 1 .27%

Alphabet Inc ., Class A 1 .64% CMS Energy Corp . 1 .21%

Novartis AG, Registered 1 .31% JPMorgan Chase & Co . 1 .20%

Roche Holdings AG 1 .28% Facebook Inc . 1 .18%

Wells Fargo & Co . 1 .28% Nestlé SA, Sponsored ADR 1 .17%

13 .35%

North America63.22%

Europe21.76%



Latin America0.42%

North America63.22%

Europe21.76%



Latin America0.42%






1 MSCI - ACWI Index (Can . $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .



100.00%


- 82 -




Global Select Equity (Pyramis)

Commentary

The manager favours an innovative investment approach that capitalizes on Fidelity’s fundamental research by combining qualitative stock selection with quantitative risk control . The available investment universe is comprised of stocks rated attractive by our analysts in North America, Japan, the United Kingdom, Europe, excluding U .K ., and Pacific excluding Japan . The discipline uses a quantitative model to match the regional weights of the portfolio to the index . This approach diversifies specific risk, reduces tracking error and factor risk, and controls transaction costs .



Investment Advisor






Investment limits


Min. Max.


Underlying fund

Min. Max.


The sectorial weightings may vary from +/- 2.5% compared to the index.

Risk level

Underlying Fund Pyramis Select Global Equity Trust



Apple Inc . 2 .01% Medtronic Inc . 1 .01%

General Electric Co . 1 .34% Allergan Inc . 0 .97%

Johnson & Johnson 1 .25% Alphabet Inc ., Class A 0 .96%

Wells Fargo & Co . 1 .10% Novartis AG, Registered 0 .95%

The Coca-Cola Co . 1 .05% JPMorgan Chase & Co . 0 .94%

11 .58%

North America54.87%

Europe30.86%




North America54.87%

Europe30.86%








Fund 20 .0 14 .5 36 .8 16 .1 (6 .2) 7 .1 8 .8* (27 .3)* (1 .6)* -Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 11 .1 (26 .5) (7 .5) -





100.00%


- 83 -




Global Equity Low Volatility ACWI (TD)

Commentary

The philosophy underlying the Fund is that capitalization-weighted market indices are not efficient and that portfolio optimization techniques focusing on minimizing expected return volatility can provide market-like returns over the long term with less volatility than the market capitalization-weighted Index .

The manager seeks to construct a diversified portfolio of securities of companies located around the world, including emerging countries, with less return volatility than the MSCI ACWI Index . The Fund is expected to outperform in declining market environments . Note that the tracking error will be high relative to the index .


Fund Code: 886First offering: November 2012 Inception date: July 2012

Investment Advisor




Investment styleQuantitative

Investment limits


Min. Max.


Risk level

Underlying Fund TD Emerald Low Volatility All World Equity Pooled Fund Trust

Very Low to Moderate low Low moderate Moderate to high High Top 10 Holdings of the underlying fund


Compass Group PLC 0 .86% Colruyt SA 0 .84%

Ball Corp . 0 .86% McDonald's Corp . 0 .83%

TransCanada Corp . 0 .84% AT&T Inc . 0 .83%

Terna SpA 0 .84% Snam Rete Gas SpA 0 .83%

MTR Corporation Ltd . 0 .84% Formosa Petrochemical Corp . 0 .83%

8 .40%

North America56.35%


Europe18.01%

Latin America0.72%



North America56.35%


Europe18.01%

Latin America0.72%





Fund 15 .8 2 .1 6 .6 7 .7 15 .8 17 .7 21 .0 18 .2* - - 19 .1Benchmark index1 17 .1 2 .4 8 .8 5 .8 17 .1 15 .3 20 .3 18 .6 - -


Fund 15 .8 19 .5 27 .8 10 .2* - - - - - -Benchmark index1 17 .1 13 .5 31 .0 13 .6 - - - - - -

1 MSCI - ACWI Index (CA $) (Reuters) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 84 -




Global Equity (Mawer)

Commentary

The Fund invests in equity securities from around the world . The Manager allocates capital to the best global opportunities, which may include both large and small capitalization companies . Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time . In order to achieve his investment strategy objectives, the Manager systematically creates a broadly diversified portfolio of wealth-creating companies with excellent management teams bought at discounts of their intrinsic values . The Manager employs a highly disciplined, research-driven, bottom-up process and a long-term holding period to allow for investor recognition or corporate growth, and to minimize transaction costs .



Investment Advisor

Paul Moroz, CFA Jim Hall, CFA





Investment limits


Min. Max.


Underlying fund

Min. Max.


Risk level

Underlying Fund Mawer Global Equity Fund



Wells Fargo & Co . 4 .06% Roche Holdings AG 2 .94%

BlackRock Inc . 3 .86% Verizon Communications Inc . 2 .67%

Aon PLC, 4 .250%, 2042-12-12 3 .86% Novartis AG, ADR 2 .53%

Becton Dickinson & Co . 3 .56% Deutsche Borse AG 2 .33%

Markit Ltd . 3 .05% General Electric Co . 2 .30%

31 .16%

United States39.13%

Europe36.01%


Canada5.81%

Short term and other4.80%Mid-east and Africa

1.85%

United States39.13%

Europe36.01%


Canada5.81%


1.85%



Fund 23 .3* 3 .2 11 .3 11 .3* 23 .3* 19 .6* 24 .8* 23 .2* 19 .2* - 10 .4Benchmark index1 18 .3 2 .0 9 .0 7 .2 18 .3 16 .3 22 .4 20 .0 14 .9 -


Fund 23 .3* 15 .9* 36 .0* 18 .3* 4 .6* 7 .8* - - - -Benchmark index1 18 .3 14 .5 35 .4 13 .3 (3 .4) 6 .2 - - - -





100.00%


- 85 -




Global Equity Endeavour (Invesco)

Commentary

The Fund is composed of a concentrated portfolio of high-quality mid cap companies located around the world with leading market positions in their industry . The portfolio management team focuses on companies with a solid management team, proven growth potential and an attractive stock price given earnings and expected cash flows . This fund composed of mid cap equities provides investors with exposure to companies with greater growth potential at attractive prices since they are generally less followed by the market . Lower market capitalization makes this fund an excellent complement to other global funds for investors seeking greater diversification . The portfolio is based on a large number of securities . There are usually 20 to 30 of them .



Investment Advisor

Jeff Hyrich, B. Comm., CFAErin Greenfield, CA, CMA, CFA

Objectives of the Fund• Long term capital growth through investments

in global mid cap equity securities



Investment limits


Min. Max.


Risk level

Underlying Fund Trimark Global Endeavour Fund



Canadian Dollar Cash Management Fund, Series I 11 .20% Microsoft Corp . 4 .59%

Ross Stores Inc . 7 .70% DCC PLC 4 .14%

US Dollar Cash Management Fund, Series I 7 .62% Ryanair Holdings PLC, Sponsored ADR 3 .62%

Anthem, Inc . 6 .23% McGraw Hill Financial Inc . 3 .47%

Hyundai Mobis Co ., Ltd 5 .66% Aramex PJSC 3 .39%

57 .62%

North America29.61%

Europe24.31% Short term and other

19.21%



Latin America0.50%

North America29.61%

Europe24.31% Short term and other

19.21%



Latin America0.50%



Fund 21 .6 2 .7 4 .8 3 .3 21 .6 17 .4 23 .2* 21 .7* 18 .0* 10 .9* 19 .1Benchmark index1 18 .8 1 .6 8 .0 6 .1 18 .8 16 .7 23 .1 20 .7 14 .9 7 .3


Fund 21 .6 13 .4 35 .4* 17 .4* 4 .3* 22 .9* 35 .3* (35 .1)* (13 .7)* 32 .1*Benchmark index1 18 .8 14 .7 36 .8 13 .8 (5 .7) 14 .5 17 .8 (30 .6) (11 .1) 21 .0

1 MSCI - World Mid Cap . Index (Can . $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 86 -




Global Equity Small Cap (Deutsche AWM)

Commentary

The mantra of Deutsche Asset & Wealth Management (Deutsche AWM) is to “find growth, avoid risk” and it does this by investing in small, high-quality small and mid cap growth companies globally through bottom-up research . The Fund strategy is driven by best ideas from a team of global, locally based analysts and portfolio managers . Deutsche AWM seeks to achieve favorable investment returns over the course of a full market cycle through a disciplined investment process and rigorous risk management . As a result, the portfolio has a long term investment horizon which can be seen by its low turnover rate . The Fund is benchmark aware but does not manage to the benchmark, therefore sector and country weightings are a residual of stock selection . The portfolio is well diversified and will typically hold between 75 and 125 securities .


Fund Code: 531Inception date: March 2008

Investment Advisor



through investments in small and mid cap equity securities from around the world





Risk level

The Fund is managed by Deutsche Asset & Wealth Management (Deutsche AWM) since March 31, 2008. Prior to this date, the Fund was managed by Evergreen Investments.



United Internet AG 2 .48% Kusuri No Aoki Co . Ltd . 1 .69%

Ryanair Holdings PLC, Sponsored ADR 1 .99% Casey's General Stores Inc . 1 .61%

Nippon Seiki Co . Ltd . 1 .96% Pacira Pharmaceuticals Inc . 1 .58%

Babcock International Group PLC 1 .94% PATRIZIA Immobilien AG 1 .51%

Providence Service Corp . 1 .74% Paddy Power PLC 1 .50%

18 .00%

Equity96.62%


Equity96.62%



Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Mar. 2008



Fund 21 .2 5 .7 44 .8 13 .0 (6 .8) 19 .7 26 .9 (36 .1) 0 .9 -Benchmark index1 19 .4 11 .6 42 .1 15 .6 (6 .6) 20 .3 23 .7 (27 .6) (14 .3) -

1 MSCI - World Small Cap Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 87 -




Global Equity Small Cap (Mawer)

Commentary

The objective of the Global Equity Small Cap Fund is to make long term investments in equities which belong to small companies around the world . To do so, the Fund’s strategy is based on small cap value stocks and especially on the economic foundations of companies . The manager focuses on companies that have a good management team and stable cash flows, generate dividends and trade below their intrinsic value . The manager uses a very disciplined approach, based on research, which favours securities selection according to the bottom-up approach . The portfolio has a long term investment horizon, which can be seen by its low turnover rate, and therefore minimizes transaction costs .



Investment Advisor


Objectives of the Fund• Aims to achieve long term capital growth

through investments in global small cap equity securities



Investment limits


Min. Max.


Risk level

Underlying Fund Mawer Global Small Cap Fund



NCC Group PLC 5 .43% Cineworld Group PLC 3 .25%

DCC PLC 5 .06% Origin Enterprises PLC 3 .24%

Loomis AB 4 .22% Amsterdam Commodities NV 3 .17%

Constellation Software Inc . 3 .98% VZ Holdings AG 2 .48%

PayPoint PLC 3 .80% Haw Par Corp . Ltd . 2 .17%

36 .80%

Europe53.37%



North America10.29%


Latin America0.32%

Europe53.37%



North America10.29%


Latin America0.32%



Fund 30 .7 3 .7 8 .7 10 .7 30 .7 22 .1 30 .7* 31 .0* 24 .6* - 24 .9Benchmark index1 19 .4 1 .2 7 .8 4 .6 19 .4 15 .5 23 .7 21 .6 15 .4 -


Fund 30 .7 14 .0 50 .0* 31 .6* 2 .2* 18 .5* 42 .2* (28 .5)* - -Benchmark index1 19 .4 11 .6 42 .1 15 .6 (6 .6) 20 .3 23 .7 (27 .6) - -

1 MSCI - World Small Cap Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 88 -




International Equity Index (BlackRock)

Commentary

The Fund aims to closely track the MSCI EAFE Index by investing in securities very close to their actual index weights . Those securities are from Europe, Australasia and the Far East .



Investment Advisor

Objectives of the Fund• To provide long term capital appreciation

by investing directly in equity securities of issuers in Europe, Australasia and the Far East


Investment limits


Min. Max.


Risk level

Underlying Fund Since December 1, 2009: BlackRock CDN MSCI EAFE Equity Index Fund, Class D

From December 1, 2008 to November 30, 2009: BGICL Daily EAFE Equity Index Fund

Before December 1, 2008: SSgA MA EAFE Stock Index Futures Fund


Europe63.56%



0.75%

Europe63.56%



0.75%






1 MSCI - EAFE Index (Can . $) (Reuters) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .


Nestlé SA 1 .91% Novo Nordisk AS, Series B 0 .92%

Novartis AG, Registered 1 .59% Commonwealth Bank of Australia 0 .86%


Toyota Motor Corp . 1 .37% Bayer AG 0 .84%

HSBC Holdings PLC 1 .26% Sanofi LLC 0 .83%

11 .99%



100.00%


- 89 -




International Equity

Commentary

The Fund uses a multi-dimensional approach blending top-down analysis for geographic and sector allocation, and bottom-up analysis for security selection . The Fund is managed with the philosophy of providing a diversified portfolio comprised mainly of large capitalization companies possessing steady, sustainable earnings growth potential and trading at a reasonable value . The manager uses both quantitative and qualitative techniques to do so . Investment themes are used to identify macro-economic trends and global themes that could have an impact on the local or regional investment environment .



Investment Advisor

Sevgi Ipek, CFAPierre Chapdelaine, CFA


investments out of North America





Risk level



Royal Dutch Shell PLC, Class A 2 .52% Intesa Sanpaolo SPA 2 .03%

Tokio Marine Holdings Inc . 2 .23% KDDI Corp . 1 .84%

Amcor Ltd . 2 .10% TUI AG 1 .82%

DaimlerChrysler AG, Registered 2 .09% Honda Motor Co . Ltd . 1 .78%

Japan Tobacco Inc . 2 .03% AIA Group Ltd . 1 .75%

20 .19%

Equity99.74%


Equity99.74%






Fund 24 .4 4 .1 30 .9 16 .3 (12 .2) 7 .1 13 .4 - - -Benchmark index1 18 .3 3 .7 31 .3 14 .8 (10 .2) 2 .4 12 .6 - - -

1 MSCI - EAFE Index (Can . $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 90 -




International Equity (Hexavest)

Commentary

The Fund is invested in equity securities of stock markets in Europe and the Pacific Rim . The Fund is managed according to an approach that consists of actively managing each decision-making level (regional distribution, choice of country, sector-based allocation, security selection and currency management) in order to diversify the sources of added value and reduce the portfolio risk . The managers grant a great deal of importance to the preservation of their clients’ capital . The main decisions are guided by a fundamental analysis of the macroeconomic factors (top-down style) and are supported by quantitative models developed internally .


Fund Code: 852First offering: December 2004Inception date: April 2004

Investment Advisor



investments in equity securities outside of North America



Investment limits


Min. Max.


Risk level

Underlying Fund Hexavest Europac Fund



Nestlé SA 2 .74% HSBC Holdings PLC 1 .17%

Roche Holdings AG 2 .37% Vodafone Group PLC 1 .15%

Novartis AG, Registered 2 .22% Novo Nordisk AS, Series B 1 .08%

GlaxoSmithKline PLC 1 .40% Unilever, NV 1 .07%

Toyota Motor Corp . 1 .39% National Grid PLC 1 .03%

15 .62%

Europe53.28%




Latin America0.67%

North America0.43%

Europe53.28%




Latin America0.67%

North America0.43%


Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Apr. 2004







100.00%


- 91 -




International Equity (Sprucegrove)

Commentary

Sprucegrove aims to offer their clients a higher than average long term return . Their investment strategy for equities rests on the actual value of securities . It emphasizes long term investments and favours individual securities using the bottom-up approach, backed by its research . Country and sector selection are secondary in this selection method . Portfolio securities must meet their quality standards: above-average return for long periods, solid financial foundation, recognized management and potential growth of sales, earnings and price . Their evaluation criteria include normalized price/earnings ratio and price/book value ratio .



Investment Advisor






Investment limits


Min. Max.


Risk level

Underlying Fund Sprucegrove International Pooled Fund



CRH PLC 3 .20% HSBC Holdings PLC 2 .50%

Novartis AG, Registered 2 .70% Honda Motor Co . Ltd . 2 .40%

Nestlé SA 2 .60% United Overseas Bank Ltd . 2 .40%

Total SA 2 .60% China Mobile Ltd . 2 .30%

Royal Dutch Shell PLC 2 .60% Banco Santander SA 2 .10%

25 .40%

Europe53.72%




Latin America0.63%

Europe53.72%




Latin America0.63%



Fund 9 .1 1 .0 5 .7 (0 .5) 9 .1 6 .9 12 .6 13 .0 8 .3* 5 .2* 12 .3Benchmark index1 18 .3 2 .4 8 .2 4 .3 18 .3 10 .8 17 .2 16 .6 10 .7 4 .8


Fund 9 .1 4 .8 25 .0 14 .3 (8 .6)* 12 .6* 17 .0* (28 .1)* (10 .0)* 30 .6*Benchmark index1 18 .3 3 .7 31 .3 14 .8 (10 .2) 2 .4 12 .6 (29 .8) (5 .7) 26 .3





100.00%


- 92 -




International Equity (Templeton)

Commentary

The manager of the Fund favours a bottom-up approach, a rigorous investment method based on value and patience . The Fund’s value-oriented style means that the manager looks for securities that are undervalued by the market and that have strong growth potential . The portfolio’s securities are of established mid to large cap companies, from various countries outside of North America . The allocation between these countries is chiefly a result of the bottom-up approach rather than the manager’s economic outlook with respect to different areas of the world .



Investment Advisor

Maarten Bloemen





Investment limits


Min. Max.


Risk level

Underlying Fund Templeton International Stock Trust Fund



Teva Pharmaceutical Industries Ltd ., Sponsored ADR 2 .42% Merck KGaA 1 .90%

Samsung Electronics Co . Ltd . 2 .29% ING Groep NV 1 .82%

AXA SA 2 .04% Telenor ASA 1 .81%

BNP Paribas 2 .01% Unicredit SpA 1 .73%

CRH PLC 2 .01% AIA Group Ltd . 1 .72%

19 .75%

Europe70.85%



Latin America0.30%


Europe70.85%



Latin America0.30%










100.00%


- 93 -




International Equity (Aberdeen)

Commentary

Aberdeen’s international equity strategy is built around a high conviction “best ideas” approach, designed to allow the Global Equity Team to capitalize on the expertise of their regional equity research teams .

As a bottom-up stock picking manager, Aberdeen believes that investing across the globe provides a wealth of opportunities .

It offers direct access to the very best and strongest companies located outside of the United States that offer performance potential and are also well positioned to respond to a constantly changing economic and business environment .

By giving its fund managers free rein to invest anywhere in the international community, Aberdeen provides them with greater opportunities to deliver strong performance .



Investment Advisor





Investment styleCore with a value bias

Investment limits


Min. Max.


Risk level

Underlying Fund Aberdeen Canada EAFE Plus Equity Fund




Novartis AG, ADR 4 .40% Taiwan Semiconductor Manufacturing Co . Ltd . 3 .50%

Nestlé SA 4 .00% AIA Group Ltd . 3 .00%

Japan Tobacco Inc . 4 .00% Shin-Etsu Chemical Co . Ltd . 2 .90%

Samsung Electronics Co . Ltd . 4 .00% Royal Dutch Shell PLC 2 .90%

36 .60%

Europe48.90%


North America5.40%

Latin America5.40%



Europe48.90%


North America5.40%

Latin America5.40%





Fund 2 .9 0 .7 5 .1 (3 .7) 2 .9 4 .4 8 .5* 9 .7* 7 .4* - 5 .1Benchmark index1 12 .5 1 .8 6 .7 0 .6 12 .5 8 .6 13 .3 13 .5 8 .0 -


Fund 2 .9 6 .0 16 .9* 13 .6* (1 .3)* 5 .7* - - - -Benchmark index1 12 .5 4 .9 23 .2 14 .3 (11 .8) 5 .6 - - - -

1 ACWI ex USA Index (Can . $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 94 -




International Equity (Jarislowsky)

Commentary

The Fund is composed primarily of shares in large multinational companies that have shown global leadership in their sector and that have a minimum capitalization of US$1 billion . These companies generally have sustained growth, high returns on equity, a dominant position in world markets and a solid balance sheet . As for the approach advocated by the Fund manager, it gives preference to companies that benefit from the superior growth of economies other than those of North America and companies present in industrial sectors that do not exist in America . In addition, emphasis is placed on non-cyclical companies operating in countries that offer significant export advantages .



Investment Advisor

Strategy committee





Investment limits


Min. Max.


Risk level

Underlying Fund JF International Equity Fund



Bayer AG 3 .37% SAP AG 3 .09%

Groupe Danone 3 .23% Reed Elsevier PLC 3 .06%

Fresenius Medical Care AG & Co . 3 .23% Keyence Corp . 3 .00%

GlaxoSmithKline PLC 3 .19% AXA SA 2 .95%

Roche Holdings AG 3 .16% HSBC Holdings PLC 2 .79%

31 .07%

Europe74.95%


Latin America2.17%Short term and other

1.60%

Europe74.95%


Latin America2.17%Short term and other

1.60%









100.00%


- 95 -




International Equity (Mawer)

Commentary

The Fund aims to make long term investments primarily in companies outside of North America . The amount invested in a country depends on the economy, investments and opportunities offered on each region’s economic market . The Fund’s strategy essentially focuses on the economic foundations of companies that have a good management team and stable cash flows, generate dividends and trade below their intrinsic value . The manager uses a very disciplined approach, based on research, which favours securities selection according to the bottom-up approach . The portfolio has a long term investment horizon, which can be seen by its low turnover rate, and therefore minimizes transaction costs .



Investment Advisor



investments out of North America


Investment styleCore (Growth and Value)

Investment limits


Min. Max.


Risk level

Underlying Fund Mawer International Equity Fund



Intertek Group PLC 4 .05% Deutsche Borse AG 3 .16%

Aon PLC 4 .02% Anheuser-Busch InBev 3 .11%

Markit Ltd . 3 .60% Halma PLC 3 .07%

Nestlé SA, Sponsored ADR 3 .46% Tsuraha Holdings Inc . 3 .01%

Roche Holdings AG 3 .43% DCC PLC 2 .85%

33 .76%

Europe63.53%


North America7.94%



Latin America1.24%

Europe63.53%


North America7.94%



Latin America1.24%





Fund 23 .0 13 .1 24 .5* 21 .1* (6 .1)* 10 .0* 26 .4* (31 .0)* (1 .1)* 33 .6*Benchmark index1 18 .3 3 .7 31 .3 14 .8 (10 .2) 2 .4 12 .6 (29 .8) (5 .7) 26 .3


*Simulation of past returns as if the Fund had been in effect for these periods .



100.00%


- 96 -




International Equity (MFS)

Commentary

The Fund invests primarily in equities of companies whose operations lie outside of the U .S . and Canada . The fund will primarily be invested in high-quality companies with above-average, sustainable earnings growth that are trading below their expected earnings growth or cash flow growth rates . This fund is generally comprised of 60 to 80 securities . The objective is to outperform the Morgan Stanley Capital International, Europe, Australasia and Far East (MSCI EAFE) Index (Net Dividends Reinvested) .



Investment Advisor

Marcus SmithDaniel Ling, CFA





Investment limits


Min. Max.


Risk level

Underlying Fund MFS International Equity Fund



Nestlé SA 3 .70% Hoya Corp . 2 .69%

Bayer AG 3 .52% UBS Group AG 2 .53%

Compass Group PLC 3 .42% Taiwan Semiconductor Manufacturing Co . Ltd . 2 .41%

WPP PLC 3 .28% Reckitt Benckiser Group PLC 2 .37%

Roche Holdings AG 3 .07% Danone SA 2 .35%

29 .34%

Europe69.39%


North America7.05%


Latin America0.44%


Europe69.39%


North America7.05%


Latin America0.44%










100.00%


- 97 -




U.S. Equity Index (BlackRock) Registered Plans Only

Commentary

The Fund is passively managed in order to provide a return derived primarily from long term capital appreciation by investing in a largely diversified portfolio of American equity securities . The Fund only accepts registered assets .



Investment Advisor

Objectives of the Fund• Aims to closely track the S&P 500 Index by

investing in securities very close to their actual index weights


Investment limits


Min. Max.


Risk level

Underlying Fund BlackRock CDN US Equity Index Non-Taxable Fund, Class D



U.S. Equity Portfolio


Financials 16 .43%

Health Care 15 .13%



Industrials 10 .03%

Energy 6 .49%

Utilities 2 .98%

Materials 2 .75%


99 .78%

U.S. Equity99.78%


U.S. Equity99.78%




Fund 21 .6 2 .7 11 .0 11 .4 21 .6 22 .6 28 .5 24 .6 20 .3* 9 .2* 24 .1Benchmark index1 21 .6 2 .7 10 .9 11 .4 21 .6 22 .8 28 .6 24 .7 20 .4 9 .2


Fund 21 .6 23 .7 41 .1 13 .6 4 .4* 9 .1* 7 .4* (21 .1)* (10 .5)* 15 .4*Benchmark index1 21 .6 23 .9 41 .3 13 .4 4 .6 9 .1 7 .4 (21 .2) (10 .5) 15 .4

1 S&P 500 Index (Can . $) (Reuters) . Please refer to the Legal Notices at the end of this publication for more information about the Index .







Johnson & Johnson 1 .59% Facebook Inc . 1 .33%

17 .73%



100.00%


- 98 -




U.S. Equity Index Non-Registered (BlackRock)

Commentary

The Fund is passively managed in order to provide a return derived primarily from long term capital appreciation by investing in a largely diversified portfolio of American equity securities . The Fund accepts both registered and non-registered assets .



Investment Advisor

Objectives of the Fund• Aims to closely track the S&P 500 Index by

investing in securities very close to their actual index weights


Investment limits


Min. Max.


Risk level

Underlying Fund BlackRock CDN US Equity Index Fund, Class D





Financials 16 .34%

Health Care 15 .04%



Industrials 9 .97%

Energy 6 .45%

Utilities 2 .97%

Materials 2 .74%


99 .20%

U.S. Equity99.20%


U.S. Equity99.20%






Fund 21 .3 23 .5 40 .8* 13 .0* 4 .3* 8 .7* 7 .0* (21 .5)* (10 .7)* 15 .1*Benchmark index1 21 .0 24 .0 41 .5 13 .5 4 .4 9 .3 8 .1 (21 .9) (10 .5) 15 .7

1 S&P 500 Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .* Simulation of past returns as if the Fund had been in effect for these periods .






Johnson & Johnson 1 .59% Facebook Inc . 1 .33%

17 .73%



100.00%


- 99 -




U.S. Dividend Growth

Commentary

The Fund aims to provide a superior real rate of return, primarily through long term capital appreciation, by investing in a diversified portfolio of U .S . equities . Stocks chosen are considered to be either undervalued in relation to their historical price, industry competitors and/or the overall market, or have prospects for above average earnings growth . At least seventy-five percent of the Fund will normally be invested in companies included in the S&P 500 Index . This fund is generally comprised of 70 to 100 securities . The objective is to outperform the S&P 500 Index (CAD$) .


Fund Code: 518First offering: November 2013Inception date: January 2013†

Investment Advisor

Pierre Trottier, B. Sc. act., MBA, CFA


investments in U.S. equity securities




Short term 0% 20%U.S. Equity securities 80% 100%

Risk level

† The Fund is managed by Industrial Alliance Investment Management since January 2013 .




Financials 21 .39%



Health Care 10 .97%

Industrials 10 .72%


Energy 4 .88%

Market Index 3 .55%

Utilities 3 .23%

Materials 2 .23%

98 .37%


Exxon Mobil Corp . 3 .56% United Parcel Service Inc ., Class B 2 .39%

Microsoft Corp . 3 .54% The Walt Disney Co . 2 .35%

MetLife Inc . 2 .52% General Electric Co . 2 .26%

JPMorgan Chase & Co . 2 .49% Amgen Inc . 2 .26%

SunTrust Banks Inc . 2 .48% MasterCard Inc ., Class A 2 .21%

26 .06%

U.S. Equity98.37%


U.S. Equity98.37%




Fund 22 .6 1 .0 9 .3 10 .5 22 .6 23 .3 - - - - N/ABenchmark index1 21 .0 2 .2 10 .6 11 .1 21 .0 22 .5 - - - -


Fund 22 .6 24 .1 - - - - - - - -Benchmark index1 21 .0 24 .0 - - - - - - - -

1 S&P 500 Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .


- 100 -




U.S. Equity

Commentary

The portfolio manager uses a bottom-up approach to select securities presenting lower than average prices but higher earnings growth, than peers . Quantitative filters are applied to the investment universe in order to rapidly focus attention on the most promising securities . The manager then applies his qualitative judgment combined with some top-down views to select those companies seen as leaders in their respective industries that possess above average earnings growth and stability, management quality and experience, as well as overall market share .


Fund Code: 705First offering: November 2011Inception date: December 2006

Investment Advisor

Pierre Trottier, B. Sc. act., MBA, CFA


investments in U.S. equity securities




Short term 0% 15%U.S. Equity securities 85% 100%

Risk level




Financials 20 .46%



Health Care 12 .18%

Industrials 11 .50%


Energy 4 .92%

Market Index 1 .99%

Materials 2 .40%

96 .55%


Microsoft Corp . 4 .01% MetLife Inc . 2 .49%

Exxon Mobil Corp . 3 .68% The Walt Disney Co . 2 .48%

Apple Inc . 3 .35% General Electric Co . 2 .43%

SunTrust Banks Inc . 2 .83% United Parcel Service Inc ., Class B 2 .39%

JPMorgan Chase & Co . 2 .70% MasterCard Inc ., Class A 2 .27%

28 .63%

U.S. Equity96.55%


0.56%

U.S. Equity96.55%


0.56%





Fund 24 .8 24 .3 41 .1 13 .1 (1 .5) 8 .7 11 .1 (21 .8) (10 .8) -Benchmark index1 21 .0 24 .0 41 .5 13 .5 4 .4 9 .3 8 .1 (21 .9) (10 .5) -



- 101 -




U.S. Equity (Jarislowsky)

Commentary

The primary objective of the U .S . Equity Fund is to seek growth opportunities in industries otherwise unavailable to domestic investors . Thus, cyclical stocks tend to be avoided, as these are readily available in Canada . This approach contributes to the diversification of any Canadian based portfolio, avoids duplication and provides the framework for a comprehensive equity strategy . The focus is generally on the large capitalization multinationals in order to maximize liquidity and minimize currency risk . The focus is also on companies that have consistent growth records, high returns on invested capital and dominant market positions . The Fund accepts both registered and non-registered assets .



Investment Advisor

Strategy committee


investments in US equity securities



Investment limits


Min. Max.


Risk level

Underlying Fund JF U.S. Equity Fund






Financials 16 .86%

Health Care 16 .50%


Industrials 8 .06%

Energy 5 .80%

Materials 1 .02%

99 .30%


Microsoft Corp . 5 .28% Alphabet Holding Company Inc . 2 .81%

Walgreens Boots Alliance, Inc . 3 .55% JPMorgan Chase & Co . 2 .68%

Fiserv Inc . 3 .53% CA Inc . 2 .62%

CVS Caremark Corp . 3 .49% Wells Fargo & Co . 2 .61%

Colgate-Palmolive Co . 3 .06% Verisk Analytics Inc ., Class A 2 .61%

32 .24%

U.S. Equity99.30%


U.S. Equity99.30%






Fund 24 .2 23 .5 41 .7 14 .2 3 .6 6 .1 7 .2 (16 .5) (10 .4) 16 .5Benchmark index1 21 .0 24 .0 41 .5 13 .5 4 .4 9 .3 8 .1 (21 .9) (10 .5) 15 .7




100.00%


- 102 -




U.S. Equity (Mawer)

Commentary

The Fund aims to make long term investments in U .S . equities . The Fund’s strategy essentially focuses on the economic foundations of companies that have a good management team and stable cash flows, generate dividends and trade below their intrinsic value . The manager uses a very disciplined approach, based on research, which favours securities selection according to the bottom-up approach . The portfolio has a long term investment horizon, which can be seen by its low turnover rate, and therefore minimizes transaction costs .



Investment Advisor


Objectives of the Fund• Aims to achieve long term capital growth

through investments in U.S. equity securities

• Consistent with a sufficiently long investment horizon to tolerate market value volatility


Investment limits


Min. Max.


Risk level

Underlying Fund Mawer U.S. Equity Fund




Financials 22 .21%



Health Care 12 .60%

Industrials 9 .24%

Energy 4 .51%


Materials 3 .93%


97 .57%


Becton Dickinson & Co . 4 .19% Marsh and McLennan Companies, Inc . 3 .44%

JPMorgan Chase & Co . 3 .98% Comcast Corp ., Class A 3 .24%

Wells Fargo & Co . 3 .79% Alphabet Inc ., Class C 3 .15%

LKQ Corp . 3 .58% Oracle Corp . 2 .91%

BlackRock Inc . 3 .54% McGraw-Hill Co ., Inc ., 5 .900%, 2017-11-15 2 .80%

34 .62%

U.S. Equity97.57%


U.S. Equity97.57%






Fund 21 .0 21 .9 44 .4* 13 .2* 5 .6* 7 .1* 3 .6* (13 .2)* (7 .0)* 15 .8*Benchmark index1 21 .0 24 .0 41 .5 13 .5 4 .4 9 .3 8 .1 (21 .9) (10 .5) 15 .7

1 S&P 500 Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .* Simulation of past returns as if the Fund had been in effect for these periods .



100.00%

Total net assets: $24.1million

- 103 -




U.S. Equity Core (MFS)

Commentary

The Fund aims to provide a superior real rate of return, primarily through long term capital appreciation, by investing in a diversified portfolio of U .S . equities . Stocks chosen are considered to be either undervalued in relation to their historical price, industry competitors and/or the overall market, or have prospects for above average earnings growth . At least seventy-five percent of the Fund will normally be invested in companies included in the S&P 500 Index . This fund is generally comprised of 70 to 100 securities . The objective is to outperform the S&P 500 Index (CAD$) .



Investment Advisor

Kevin BeattyTed Maloney


investments in US equity securities



Investment limits


Min. Max.


Risk level

Underlying Fund MFS U.S. Equity Core Fund





Financials 18 .84%

Health Care 14 .90%


Industrials 9 .70%


Materials 5 .25%

Energy 4 .72%

Utilities 1 .53%

98 .92%


JPMorgan Chase & Co . 3 .32% Bank of America Corp . 2 .11%

Danaher Corp . 2 .94% Johnson & Johnson 2 .07%

Visa Inc ., Class A 2 .84% Wells Fargo & Co . 2 .06%

Alphabet Inc ., Class A 2 .44% American Tower Corp . 1 .94%

Thermo Fisher Scientific Inc . 2 .34% Alphabet Inc ., Class C 1 .91%

23 .97%

U.S. Equity98.92%


U.S. Equity98.92%






Fund 21 .0 21 .5 41 .5 15 .2 (2 .0) 4 .3 11 .5 (22 .0) (4 .6) 15 .1Benchmark index1 21 .0 24 .0 41 .5 13 .5 4 .4 9 .3 8 .1 (21 .9) (10 .5) 15 .7




100.00%


- 104 -



Performance of the Industrial Alliance Fund - Gross returnReturns before deduction of management and administration fees .


Fund 22 .0 1 .6 9 .6 10 .4 22 .0 24 .4 31 .8 26 .5 21 .0 8 .1 3 .7Benchmark Index1 21 .0 2 .2 10 .6 11 .1 21 .0 22 .5 28 .5 24 .6 20 .3 9 .2


Fund 22 .0 26 .9 47 .9 11 .7 1 .5 3 .6 2 .5 (23 .8) (5 .6) 10 .1Benchmark Index1 21 .0 24 .0 41 .5 13 .5 4 .4 9 .3 8 .1 (21 .9) (10 .5) 15 .7


U.S. Equity (Fiera Capital)

Commentary

Fiera Capital’s team-based approach focuses on identifying the basic engines of economic change and leading companies best positioned to exploit these opportunities . Combining this goal with a process that continually reduces overall portfolio risk and that adheres to specific valuation criteria creates a high-quality, predominantly large capitalization U .S . growth portfolio . The ultimate objective is to identify exceptional growth opportunities within those sectors that they expect to generate positive cash flow and earnings growth as the identified longer term themes unfold .


Fund Code: 479First offering: December 2015Inception date: December 2001

Investment Advisor

Nadin Rizk, MBA, CFA Andrew Chan, M.Sc

Objectives of the Fund

• long term capital growth through investments in U.S. equity securities


Investment style

Value

Investment limits


Min. Max.

Short term 0% 20%Units of an underlying fund 80% 100%

Risk level

Underlying Fund

Fiera U.S. Equity Tax Exempt Fund


Sector AllocationAs at December 31, 2015


Health Care 19 .89%


Financials 19 .50%

Industrials 16 .98%


Materials 7 .56%


99 .96%

U.S. Equity99.96%


U.S. Equity99.96%



- 105 -




Commentary

The Fund seeks to provide long term capital growth by replicating, insofar as possible, the performance of the MSCI - Emerging Markets Index, net of expenses .

Asset mix of the indexAs at December 31, 2015


Investment Advisor

Objectives of the Fund• Track the returns of the MSCI - Emerging

Markets Index

• Seek long term capital growth through equity security investments in emerging countries

• Requires a long term investment horizon to tolerate market volatility



Short term 0% 20%Exchange-traded fund 80% 100%

Risk level

Emerging Markets Equity Index (BlackRock)


Other countries26.08%

China25.01%

South Korea16.04%

Taiwan12.79%

India9.06%

South Africa6.06%Brazil

4.96%

Other countries26.08%

China25.01%

South Korea16.04%

Taiwan12.79%

India9.06%

South Africa6.06%Brazil

4.96%


Samsung Electronics Co . Ltd . 2 .93% Nasper Ltd . 1 .35%

Taiwan Semiconductor Manufacturing Co . Ltd . 2 .65% Industrial & Commercial Bank of China Ltd . 1 .10%

Tencent Holdings Ltd . 2 .52% Alibaba Group Holding Ltd . 1 .01%

China Mobile Ltd . 1 .72% Bank of China Ltd . 0 .87%

China Construction Bank Corp . 1 .42% Hon Hai Precision Industry Co ., Ltd . 0 .86%

16 .43%



Fund 1 .6 (0 .2) 3 .0 (8 .1) 1 .6 2 .7 4 .0* - - - 4 .9Benchmark index1 3 .3 2 .3 4 .7 (7 .5) 3 .3 5 .2 4 .9 - - -


Fund 1 .6 3 .8 6 .7* - - - - - - -Benchmark index1 3 .3 7 .1 4 .4 - - - - - - -

1 MSCI - Emerging Markets (IMI) Index (Can . $) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .



- 106 -




Emerging Markets (Aberdeen)

Commentary

Given the inefficiency of markets, Aberdeen believes that competitive long-term returns are achieved by identifying high-quality stocks at attractive valuations and holding them for the long term . It is their belief that sound fundamentals drive stock prices over time . They employ a fundamental bottom-up investment approach based on a rigorous and disciplined proprietary research effort which originates with direct company due diligence visits .

They hold absolute return to be of the utmost importance over the long term and are benchmark-aware, but not benchmark-driven .



Investment Advisor

Devan Kaloo


investments in equity securities in emerging countries

• Requires a long term investment horizon to tolerate the volatility of the market values


Investment limits


Min. Max.


Risk level

Underlying Fund Aberdeen Canada - Emerging Markets Fund



Samsung Electronics Co . Ltd . 5 .00% PT Astra International Tbk 3 .20%

Taiwan Semiconductor Manufacturing Co . Ltd . 3 .70% China Mobile Ltd . 3 .00%

AIA Group Ltd . 3 .70% Grupo Financiero Banorte 2 .80%

Housing Development Finance Corp . 3 .70% SABMiller PLC 2 .70%

FEMSA 3 .30% ITC Ltd . 2 .60%

33 .70%


Latin America18.50%


Europe9.20%



Latin America18.50%


Europe9.20%




Fund 3 .6* 1 .3 4 .3 (4 .7)* 3 .6* 5 .7* 4 .0* 8 .7* 5 .2* - 5 .3Benchmark index1 1 .9 1 .5 4 .1 (8 .1) 1 .9 4 .5 4 .5 7 .2 2 .1 -


Fund 3 .6* 7 .7* 0 .6* 24 .0* (7 .7)* 22 .3* 55 .4* (27 .9)* 15 .3* -Benchmark index1 1 .9 7 .1 4 .5 16 .0 (16 .3) 13 .3 53 .0 (42 .0) 18 .5 -

1 MSCI - Emerging Markets Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




Financials 37 .10%




Materials 8 .60%

Energy 6 .70%


Industrials 1 .40%

Health Care 1 .20%

98 .20%



100.00%


- 107 -




Emerging Markets (Templeton)

Commentary

The Fund seeks long term capital appreciation by investing primarily in equities of companies in emerging markets . The Fund may also invest in companies that trade in emerging markets, or that trade elsewhere in the world and earn at least 50% of their revenue from production or sales in emerging markets .



Investment Advisor

J. Mark Mobius, Ph.D.


investments in equity securities in emerging countries

• Requires a long term investment horizon to tolerate the volatility of the market values


Investment limits


Min. Max.


Risk level

Underlying Fund Templeton Emerging Markets Fund



Brilliance China Automotive Holdings Ltd . 4 .88% Tata Consultancy Services Ltd . 2 .91%

Samsung Electronics Co . Ltd . 4 .66% Itau Unibanco Holding SA 2 .76%

Unilever PLC, ADR 4 .65% PT Astra International Tbk 2 .49%

Taiwan Semiconductor Manufacturing Co . Ltd . 4 .53% Yandex NV 2 .34%

Bajaj Holdings & Investments Limited 4 .34% Banco Bradesco SA 2 .33%

35 .89%


Europe13.94%

Latin America12.20%




Europe13.94%

Latin America12.20%





Fund (4 .9) 0 .7 5 .4 (8 .9) (4 .9) 1 .0 0 .7 4 .3 (0 .5)* 4 .9* 2 .6Benchmark index1 1 .9 1 .5 4 .1 (8 .1) 1 .9 4 .5 4 .5 7 .2 2 .1 5 .7


Fund (4 .9) 7 .3 0 .2 15 .8 (17 .6)* 16 .9* 56 .2* (41 .8)* 19 .9* 29 .5*Benchmark index1 1 .9 7 .1 4 .5 16 .0 (16 .3) 13 .3 53 .0 (42 .0) 18 .5 32 .5

1 MSCI - Emerging Markets Index (Can . $) . Please refer to the Legal Notices at the end of this publication for more information about the Index .





Financials 21 .70%



Energy 7 .35%

Industrials 5 .61%

Materials 4 .40%


Health Care 1 .57%

99 .93%



100.00%


- 108 -




Balanced-Risk Allocation (Invesco)

Commentary

The Fund’s investment philosophy is based on the conviction that the understanding, management and allocation of risk are fundamental to creating a good portfolio . The Fund’s strategy allows investors to take advantage of a risk premium by investing in stock markets, bond markets and commodities according to a process based on balanced risk allocation . More specifically, the team selects the asset that is best suited to this strategy, allocates it based on exclusive risk management techniques and then uses an active positioning process to improve expected returns . The primary objective is to create a portfolio that will generate good returns in various economic environments (recession, non-inflationary growth, inflationary growth) .


Investment Advisor


Objectives of the Fund• Annualized return exceeding by at least 6%

that of the FTSE TMX Canada 91 Day T-Bill Index over moving four-year periods

• 8% target portfolio volatility

• Approach that focuses on balanced risk based on investments in stock markets, bond markets and commodities

• Good returns in various economic environments

Investment styleAbsolute return

Investment limits


Min. Max.


Risk level

Underlying Fund Invesco Balanced-Risk Allocation Fund


Long Gilt Futures, expiring March 2016 20 .13%

Canada 10 Year Bonds Futures, expiring March 2016 18 .81%

Euro Bonds Futures, expiring March 2016 14 .79%

Australian 10 Year Bonds Futures, expiring March 2016 13 .09%

Japan 10 Year Bonds Futures, expiring March 2016 9 .92%

U .S . Treasury Long Bonds Futures, expiring March 2016 9 .46%

Topix Tokyo Price Index Futures, expiring March 2016 7 .13%

Dow Jones Eurostoxx 50 Futures, expiring March 2016 6 .81%

FTSE 100 Index Futures, expiring March 2016 6 .75%

Hang Seng Index Futures, expiring January 2016 6 .09%

Russell 2000 Index Mini Futures, expiring March 2016 5 .57%

E-Mini S&P 500 Index Futures, expiring March 2016 5 .01%

100 Ounce Gold Futures, expiring February 2016 3 .92%

LME Copper Futures, expiring January 2016 2 .90%

Silver Futures, expiring March 2016 2 .12%

% of the underlying fund % of total notional value

Fixed-income futures contracts 86 .20% 59 .40%

Equity futures contracts 37 .36% 25 .73%

Commodity futures contracts 21 .59% 14 .87%

145 .15% 100 .00%

LME Primary Aluminum Futures, expiring March 2016 2 .09%

Sugar #11, expiring March 2016 1 .79%

Soybean Meal Futures, expiring March 2016 1 .63%

Soybean Futures, expiring July 2016 1 .62%

RBOB Gasoline Futures, expiring February 2016 1 .31%

Cotton No . 2 Futures, expiring March 2016 1 .17%

Brent Crude Oil Futures, expiring March 2016 0 .70%

Coffee 'C' Futures, expiring March 2016 0 .59%

WTI Crude Futures, expiring June 2016 0 .50%

Soybean Oil Futures, expiring July 2016 0 .46%

Wheat Futures, expiring July 2016 0 .45%

Corn Futures, expiring July 2016 0 .34%

Coffee 'C' Futures, expiring December 2015 0 .31%

Natural Gas Futures, expiring December 2015 0 .18%

145 .15%

Asset class allocation of the underlying fundAs at December 31, 2015

Holdings of the underlying fundAs at December 31, 2015



Fund (1 .3) (1 .1) 0 .6 (3 .3) (1 .3) 3 .9 3 .6* - - - 4 .0Composite index1 11 .4 1 .1 5 .1 4 .7 11 .4 11 .4 14 .0 - - -


Fund (1 .3) 9 .3 3 .2* - - - - - - -Composite index1 11 .4 11 .5 19 .5 - - - - - - -

1 MSCI - World Index (Can . $) (net ret .) (60%), Barclays U .S . Aggregate Index (CAD Hedged) (40%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .




100.00%


- 109 -




Commentary

BlackRock uses an “index” approach to manage this fund . The advantage of an index approach is that costs are generally lower, it provides broad diversification by investing in about 300 of the largest REIT companies in the world . To closely track the FTSE EPRA/NAREIT Developed Index, BlackRock invests in all securities in the index very close to their actual index weights .



Investment Advisor

Objectives of the Fund• Track the returns of the FTSE EPRA/NAREIT

Developed Index

• Seek capital growth over the longer term

• Intended for investors seeking diversification outside Canada through exposure to global REIT stocks


Investment limits


Min. Max.


Risk level

Underlying Fund BlackRock CDN Global Developed Real Estate Index Fund, Class D

Global Developed Real Estate Index (BlackRock)


North America55.63%


Europe16.80%



North America55.63%


Europe16.80%




Simon Property Group LP 4 .72% Unibail-Rodamco SE 1 .96%

Public Storage 2 .80% Welltower Inc 1 .87%

Equity Residential 2 .29% Mitsui Fudosan Co ., Ltd . 1 .85%

Mitsubishi Estate Co . Ltd . 2 .04% Prologis Inc . 1 .76%

AvalonBay Communities Inc . 1 .97% Sun Hung Kai Properties Ltd . 1 .57%

22 .83%



Fund 19 .8 5 .1 8 .5 14 .7 19 .8 23 .3 18 .9* - - - 21 .9Benchmark index1 19 .0 5 .2 8 .0 14 .0 19 .0 22 .1 18 .2 - - -



1 FTSE EPRA/NAREIT Developed Index (Can .$) (Reuters) (net ret .) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 110 -




Global Real Estate (Pyramis)

Commentary

The investment philosophy and process of the Fund provides a growth at a reasonable price (GARP) style . The manager takes a long term view in investment selection and has low turnover in their portfolios . With this philosophy their buy/sell discipline is based on the long term fundamentals of a company/property type and less on a short term price target .


Fund Code: 540Inception date: October 2006

Investment Advisor

Steven Buller, CFA


through investments in real estate equity securities of companies in the global real estate sector



Investment limits


Min. Max.


Risk level

Underlying Fund Since January 2013: Fidelity Global Real Estate

Before January 2013: BNP Paribas Real Estate Fund



North America58.33%


Europe17.18%


North America58.33%


Europe17.18%


British Land Co . Plc Sun Hung Kai Properties Ltd .

Mitsui Fudosan Co . Ltd . Mitsubishi Estate Co . Ltd .

Public Storage Duke Realty Corp .

Digital Realty Trust Inc . Host Hotels & Resorts Inc .

Simon Property Group LP Hong Kong Land holdings



Compound returns SinceAs at December 31, 2015 YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Oct. 2006



Fund 23 .2 27 .7 10 .8 26 .4 (2 .5) 12 .0 15 .4 (35 .0) (23 .3) -Benchmark index1 18 .4 25 .5 10 .8 25 .0 (4 .3) 13 .7 17 .2 (33 .8) (22 .7) -

1 The returns presented are those of the In-House FTSE EPRA/NAREIT Developed Index Net (Can . $) TR since January 1, 2009 . For periods to this date, the returns presented are those of GPR 250 . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .



100.00%


- 111 -




Commentary

BlackRock uses an “index” approach to manage this fund . The advantage of an index approach is that costs are generally lower, it provides broad diversification by investing in about 100 of the largest listed global infrastructure companies in the world . To closely track the Dow Jones Brookfield Global Infrastructure Index, BlackRock invests in all securities in the index very close to their actual index weights .



Investment Advisor

Objectives of the Fund• Seek capital growth over the longer term

• Intended for investors seeking diversification outside Canada through exposure to listed global infrastructure stocks

• Track the returns of the Dow Jones Brookfield Global Infrastructure Index


Investment limits


Min. Max.


Risk level

Underlying Fund BlackRock CDN Global Infrastructure Equity Index Fund, Class D

Global Infrastructure Equity Index (BlackRock)


North America58.46%

Europe25.85%


Latin America1.02%


North America58.46%

Europe25.85%


Latin America1.02%



National Grid PLC 7 .60% PG&E Corp . 3 .66%

American Tower Corp . 5 .76% TransCanada Corp . 3 .23%

Crown Castle International Corp . 4 .03% Sempra Energy 3 .10%

Enbridge Inc . 4 .01% Consolidated Edison Inc . 2 .65%

Kinder Morgan Inc . 3 .83% Williams Cos . Inc . 2 .45%

40 .32%



Fund 3 .1 0 .0 0 .7 (0 .9) 3 .1 14 .4 17 .5* - - - 15 .9Benchmark index1 2 .7 (0 .1) 0 .6 (1 .2) 2 .7 14 .1 17 .2 - - -



1 Dow Jones Brookfield Global Infrastructure Index (Can .$) (Reuters) . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 112 -




Global Infrastructure (Lazard)

Commentary

Infrastructure is the basic facilities, services and installations needed for the functioning of a community or society . Lazard believes that infrastructure assets have a number of investment characteristics that make them attractive for investors . These include the long life of the assets, low risk of capital loss and inflation-linked returns . The Lazard Global Listed Infrastructure (Canada) Fund allows investors to access such opportunities by investing in companies listed on global stock exchanges .



Investment Advisor



through investments in real estate equity securities of companies that operate in infrastructure sectors



Investment limits


Min. Max.


Risk level

Underlying Fund Lazard Global Listed Infrastructure (Canada) Fund




Toll Roads 28 .10%

Railroads 15 .70%

Electricity Utilities 14 .30%

Diversified Utilities 10 .50%

Communication infrastructures 9 .60%

Gas Utilities 9 .60%

Airports 8 .10%

Water Utilities 4 .10%

100 .00%


CSX Corp . 7 .85% Atlantia SpA 6 .97%

Abertis Infraestructuras SA 7 .65% SES SA 6 .12%

Vinci SA 7 .09% Great Plains Energy Inc . 4 .03%

Terna SpA 7 .03% Duet Group 4 .03%

Snam SpA 7 .03% Fraport AG 3 .93%

61 .73%

Europe62.07% North America

21.61%


Europe62.07% North America

21.61%




Fund 11 .3 (1 .2) 4 .3 6 .1 11 .3 15 .5 20 .0 19 .8 15 .5* - 19 .7Benchmark index1 (0 .3) (1 .6) 0 .0 (0 .9) (0 .3) 10 .1 13 .6 13 .5 10 .8 -


Fund 11 .3 19 .9 29 .4 19 .2 0 .0* 10 .5* 19 .0* (32 .6)* - -Benchmark index1 (0 .3) 21 .6 21 .0 13 .3 0 .3 4 .3 14 .8 (32 .3) - -

1 Since April 1, 2015: FTSE Developed Core Infrastructure 50/50Before April 1, 2015: UBS Global 50/50 Infrastructure and Utilities Index (Local $) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .




100.00%


- 113 -




Canadian Resources (Invesco)

Commentary

The Fund aims to generate long term capital growth through investing primarily in Canadian companies that operate in, or are associated with, the natural resources sector . This fund allows more experienced investors to overweight the natural resources sector in the framework of a well-diversified portfolio, while seeking to mitigate downside risk by investing in companies with healthy cash flows and balance sheets .



Investment Advisor

Objectives of the Fund• Targets growth that combines long term

investments in equity securities of companies operating primarily in the natural resources sector

• Consistent with a sufficiently long investment horizon to tolerate market value volatility

Investment styleCore with a growth bias

Investment limits


Min. Max.


Risk level

Underlying Fund Trimark Resources Fund



Equity Portfolio

Materials 49 .73%

Energy 49 .70%

Industrials 0 .52%

99 .95%


Torex Gold Resources Inc . 14 .10% Trilogy Energy Corp . 3 .78%

Turquoise Hill Resources Ltd . 13 .48% Devon Energy Corp . 3 .40%

Crew Energy Inc . 10 .70% Ensco PLC 3 .16%

Canadian Natural Resources Ltd . 5 .97% Eldorado Gold Corp . 3 .14%

PrairieSky Royalty Ltd . 3 .91% Detour Gold Corp . 3 .03%

64 .67%

North America99.42%

Europe0.53%


North America99.42%

Europe0.53%




Fund (27 .8) (7 .4) (3 .6) (29 .4) (27 .8) (16 .3) (15 .2) (9 .8)* (10 .5)* 1 .2* (14 .5)Composite index1 (22 .0) (4 .1) 0 .4 (19 .3) (22 .0) (13 .0) (8 .8) (8 .4) (8 .3) 0 .5


Fund (27 .8) (2 .9) (12 .8) 8 .3* (13 .2)* 22 .7* 44 .9* (28 .6)* 20 .6* 28 .0*Composite index1 (22 .0) (3 .0) 0 .3 (7 .3) (7 .7) 17 .5 34 .8 (27 .2) 12 .5 25 .3

1 The Fund’s benchmark is a composite of the S&P/TSX Composite Index’s energy and materials sectors, weighted in proportion to their representation within the index . Please refer to the Legal Notices at the end of this publication for more information about the Index .




100.00%


- 114 -




Global Direct Real Estate - 100% (UBS)

Commentary

In order to offer diversified exposure to key global real estate markets, UBS Asset Management allocates the Fund’s assets among various high-quality specialized institutional fund managers offering different management styles and strategies . Investments are selected by a team of UBS Asset Management managers . Tactical overweighting and underweighting is the product of research activities and are based on the points of view of UBS Global Real Estate Research House . Allocation in the Americas is focused in the U .S . with exposure in Canada . Exposure in Europe is largely weighted in favour of the strongest and most defensive markets in the region, with overweighting in the U .K .

Geographical allocation of the underlying fund◊

As at November 30, 2015


Investment Advisor

Eric Byrne

Objectives of the Fund• Aims to offer exposure to a diversified

portfolio which includes quality buildings around the world, invested in several direct real estate funds


Investment styleMulti-Management

Investment limits


Min. Max.


Risk level

Underlying Fund UBS (Lux) Real Estate Funds Selection - Global


United States34.30%

United Kingdom19.74% Short term and other

13.43%

Cont. Europe12.96%

Japan10.05%

Australia4.77%

Canada2.57%Other APAC

2.18%

United States34.30%


13.43%

Cont. Europe12.96%

Japan10.05%

Australia4.77%


2.18%



Fund 5 .6* 0 .2 0 .2 0 .8* 5 .6* 7 .5* 7 .9* - - - 0 .2Benchmark index1 5 .3 0 .3 0 .8 2 .2 5 .3 5 .7 5 .4 - - -


Fund 5 .6* 9 .5* 8 .7* - - - - - - -Benchmark index1 5 .3 6 .0 4 .9 - - - - - - -

1 CPI + 4% . Please refer to the Legal Notices at the end of this publication for more information about the Index .* Simulation of past returns as if the Fund had been in effect for these periods .



100.00%


Characteristics of the underlying fund◊ As at November 30, 2015

Number of properties 2,501

Leverage (% gross asset values) 20 .6

Sector Allocation of the underlying fund◊


Real estate Portfolio

Office 30 .15%

Retail 21 .16%

Industrial 16 .84%

Residential 14 .50%

Other 3 .36%

Debt 0 .56%

Cash / other assets 13 .43%

100 .00%

◊Approximate figures from last available underlying fund reports . Allocation numbers may not add up to 100% due to rounding differences .

- 115 -




Global Direct Real Estate - Portfolios (UBS)

Commentary

The target allocation of the Fund is 75% in the UBS fund, 20% in the BlackRock fund and 5% in the Money Market fund . In order to offer diversified exposure to key global real estate markets, UBS Asset Management allocates the Fund’s assets among various high-quality specialized institutional fund managers offering different management styles and strategies . Investments are selected by a team of UBS Asset Management managers . Tactical overweighting and underweighting is the product of research activities and are based on the points of view of UBS Global Real Estate Research House . Allocation in the Americas is focused in the U .S . with exposure in Canada . Exposure in Europe is largely weighted in favour of the strongest and most defensive markets in the region, with an overweighting in the U .K .

BlackRock fund uses an index approach to manage its fund . To do so, it invests in all securities comprising its reference index in weightings that match the index’s weightings as closely as possible .

Geographical allocation of the underlying UBS fund†◊



Investment Advisor

Eric Byrne

Objectives of the Fund• Aims to offer diversified exposure to key

global real estate markets through a diversified portfolio which includes quality buildings around the world, invested in several direct real estate funds and also through a global real estate equity index fund, which serves to guarantee liquidity of the Fund


Investment styleMulti-management

Investment limits


Min. Max.

Short term 0% 20%Units of the underlying funds 80% 100%

Risk level

Underlying Funds • UBS (Lux) Real Estate Funds Selection-Global

• BlackRock CDN Global Developed Real Estate Index Fund, Class D

• Money Market Fund


United States34.30%


13.43%

Cont. Europe12.96%

Japan10.05%

Australia4.77%


2.18%

United States34.30%


13.43%

Cont. Europe12.96%

Japan10.05%

Australia4.77%


2.18%

North America55.63%


Europe16.80%



North America55.63%


Europe16.80%





Fund 7 .6 1 .1 1 .9 2 .6 7 .6 8 .5 8 .6 - - - 2 .0Benchmark index1 7 .9 1 .2 2 .2 4 .4 7 .9 8 .6 7 .7 - - -


Fund 7 .6* 9 .5* 8 .7* - - - - - - -Benchmark index1 7 .9 9 .4 5 .9 - - - - - - -

1 CPI + 4% (75%), FTSE EPRA/NAREIT Developed Index (Can . $) (Reuters) (net ret .) (20%), FTSE TMX Canada 91 Day T-Bill Index (5%) . Please refer to the Legal Notices at the end of this publication for more information about these Indexes .




100.00%


Geographical allocation of the underlying BlackRock fund†


†Consult the underlying fund page, available in the quarterly bulletin at ia .ca/business/group-retirement publications, to obtain additional details on its allocation .◊Approximate figures from last available underlying fund reports . Allocation numbers may not add up to 100% due to rounding differences .

- 116 -


Net assets1

in millions $

Simple returns2 Compound annual returns Investment advisor1 month

%3 months

%YTD

%1 year

%3 years

%4 years

%5 years

%10 years

%

Asset Allocation FundsAsset Allocation - Conservative 70 .2 0 .5 2 .1 5 .2 5 .2 7 .5 7 .1 6 .8 6 .0 Various Managers

Asset Allocation - Moderate 121 .1 0 .4 2 .8 5 .3 5 .3 8 .9 8 .4 7 .3 6 .2 Various Managers

Asset Allocation - Balanced 311 .2 0 .3 3 .5 5 .2 5 .2 10 .2 9 .6 7 .7 6 .3 Various Managers

Asset Allocation - Growth 172 .3 0 .2 4 .0 4 .9 4 .9 11 .5 10 .8 8 .0 6 .3 Various Managers

Asset Allocation - Aggressive Growth 88 .3 0 .1 4 .7 4 .9 4 .9 12 .8 12 .0 8 .3 6 .5 Various Managers

Income FundsMoney Market 334 .8 0 .0 0 .1 0 .7 0 .7 0 .9 0 .9 1 .0 1 .8 Industrial Alliance

Short Term Bond 313 .8 0 .5 0 .6 3 .0 3 .0 2 .7 2 .7 3 .2 3 .9 Industrial Alliance

Emerald Canadian Bond Index (TD) 163 .2 1 .1 1 .0 3 .5 3 .5 3 .6 3 .6 4 .8 5 .0 TD

Bond 2,668 .9 1 .1 1 .1 3 .7 3 .7 3 .8 3 .9 5 .1 5 .3 Industrial Alliance

Bond (Fiera Capital) 86 .8 1 .0 1 .1 3 .3 3 .3 3 .3 3 .5 4 .7 5 .0 Fiera Capital

Bond (PH&N) 27 .3 1 .1 1 .0 3 .8 3 .8 4 .1 4 .1 5 .0 5 .3 Phillips, Hager & North

Core Plus Bond (PH&N) 9 .3 1 .0 1 .2 4 .0* 4 .0* - - - - Phillips, Hager & North

Core Plus Bond (PIMCO) 165 .1 1 .5 1 .8 4 .5 4 .5 4 .0 4 .6 4 .9 - PIMCO

Long Term Bond 152 .5 2 .0 1 .8 3 .8 3 .8 4 .5 4 .7 7 .2 6 .5 Industrial Alliance

Core Plus Long Term Bond (PIMCO) 9 .9 2 .5 2 .8 5 .4 5 .4 5 .1 5 .8 7 .4 - PIMCO

Global Fixed Income (PIMCO) 108 .1 (0 .8) 0 .7 3 .4 3 .4 6 .1* 10 .6* - - PIMCO

Floating Rate Bank Loan (AlphaFixe)3 11 .9 (0 .5) (0 .6) 2 .4* 2 .4* - - - - AlphaFixe Capital

Diversified FundsDiversified Security 558 .3 (0 .1) 1 .4 6 .2 6 .2 8 .5 7 .7 6 .9 6 .4 Industrial Alliance

Balanced Moderate Index (BlackRock) 1 .3 1 .0 3 .7 6 .8 6 .8 10 .0 9 .7* 8 .1* 6 .1* BlackRock

Diversified 1,986 .2 (0 .8) 2 .1 6 .0 6 .0 10 .7 9 .8 7 .6 6 .7 Industrial Alliance

Balanced (Beutel Goodman) 31 .9 (0 .3) 3 .6 4 .6 4 .6 10 .3 10 .5 8 .4* 6 .9* Beutel Goodman

Balanced (Jarislowsky)4 86 .9 0 .7 4 .6 8 .2 8 .2 12 .8 12 .3 10 .1 6 .9 Jarislowsky

Balanced Growth (MFS) 17 .5 0 .1 2 .7 6 .7 6 .7 11 .5 11 .2 7 .2 5 .9 MFS

Balanced (PH&N) 6 .0 (0 .2) 3 .0 5 .7 5 .7 10 .9 10 .3 7 .6 5 .8 Phillips, Hager & North

Diversified Opportunity 610 .9 (0 .9) 2 .0 4 .6 4 .6 11 .5 10 .5 7 .5 6 .7 Industrial Alliance

Fidelity Canadian Asset Allocation 26 .3 (1 .2) 1 .6 1 .5 1 .5 8 .7 7 .8 5 .5 6 .7 Fidelity

Canadian Equity FundsCanadian Equity Index (TD) 46 .9 (3 .1) (1 .4) (8 .2) (8 .2) 4 .7 5 .2 2 .3* 4 .4* TD

Dividend 966 .9 (2 .0) 2 .6 (1 .8) (1 .8) 8 .9 9 .1 6 .9 7 .1 Industrial Alliance

Canadian Dividend (Beutel Goodman) 13 .2 (1 .7) 3 .6 1 .6 1 .6 13 .8 13 .4* 11 .3* 8 .6* Beutel Goodman

Canadian Equity Value (PH&N) 3 .3 (3 .2) 0 .8 (5 .8)* (5 .8)* 7 .5* 9 .0* 6 .2* - Phillips, Hager & North

Canadian Equity (QV) 6 .3 (3 .9) 0 .6 (5 .3)* (5 .3)* 9 .7* 10 .1* 7 .7* - QV Investors Inc .

Canadian Equity Selexia (Fiera Capital) 18 .6 (4 .7) (0 .8) (10 .0) (10 .0) 6 .8 8 .4 4 .0 5 .5 Fiera Capital

Canadian Focused Equity (Pyramis) 102 .0 (2 .9) (1 .0) 2 .2 2 .2 14 .0 13 .0* 8 .9* 8 .5* Pyramis

Canadian Equity Low Volatility (TD) 48 .6 (2 .9) (2 .1) (4 .6) (4 .6) 9 .3 9 .9* 10 .9* - TD

Canadian Equity All Cap (Triasima) 4 .5 (0 .8) 0 .7 1 .6* 1 .6* 10 .7* 9 .8* 7 .5* - Triasima

Canadian Equity Growth 617 .6 (3 .4) 0 .7 (2 .9) (2 .9) 8 .6 8 .8 4 .6 7 .6 Industrial Alliance

Canadian Equity Q Growth (CC&L) 35 .1 (2 .1) (0 .6) (4 .8)* (4 .8)* 10 .0* 9 .7* 6 .4* 6 .5* CC&L

Canadian Equity (Jarislowsky) 137 .3 (2 .6) 2 .1 (2 .5) (2 .5) 10 .5 10 .4 6 .9 6 .2 Jarislowsky

Canadian Equity Growth (MFS) 29 .7 (3 .0) (2 .4) (3 .7) (3 .7) 9 .7 9 .9 2 .7 4 .9 MFS

Canadian Equity Value 246 .6 (1 .4) 2 .7 (1 .4) (1 .4) 6 .8 7 .0 3 .3 4 .2 Industrial Alliance

Fidelity True North® 248 .9 (1 .4) 0 .7 0 .4 0 .4 13 .5 12 .8 8 .7 8 .1 Fidelity

Canadian Equity Responsible (MFS) 2 .4 (3 .0) (1 .9) (4 .4) (4 .4) 9 .2 10 .2 4 .3 5 .1 MFS

Canadian Equity Small Cap (Montrusco) 48 .8 (2 .7) 1 .6 (11 .8) (11 .8) 1 .8 2 .4 (0 .4) 5 .8 Montrusco

Canadian Equity Small Cap (QV) 124 .6 (3 .0) 2 .0 (4 .2) (4 .2) 13 .8 16 .2 12 .6 9 .4* QV Investors Inc .


Gross returns


- 117 -


1 Total net assets of the fund including individual and group contracts . 2 The rates of return for the period are non-annualized . 3 Offered only for certain types of contracts .4 Not available in non-registered and TFSA contracts .5 Fund managed by Deutsche Asset & Wealth Management (Deutsche AWM) since March 31, 2008 .6 Available in non-registered and TFSA contracts .

* Simulation of past returns as if the fund had been in effect for these periods .

Index funds: Simulation of past returns from the return of the index that the fund aims to reproduce .

Asset allocation funds: Simulation of past returns based on the return of the funds included in the asset allocation fund and on an asset allocation decision .

The above returns are gross returns and do not take into account management and administration fees . Past performance is not a guarantee of future returns .

Net assets1

in millions $

Simple returns2 Compound annual returns Investment advisor1 month

%3 months

%YTD

%1 year

%3 years

%4 years

%5 years

%10 years

%

Foreign Equity FundsGlobal Equity Index ACWI (BlackRock) 78 .8 2 .5 9 .2 18 .1 18 .1 20 .4 18 .8* 13 .7* - BlackRock

Global Equity 181 .5 1 .9 8 .6 23 .4 23 .4 24 .0 21 .5 14 .9 - Industrial Alliance

Global Equity (Hexavest) 181 .9 5 .1 8 .2 20 .2 20 .2 22 .3 19 .1 15 .0 8 .3 Hexavest

Global Equity (C$-Hedged) (Hexavest) 32 .9 0 .2 5 .2 2 .6 2 .6 13 .1 13 .0 9 .7 - Hexavest

Global Equity (QV) 14 .3 0 .5 5 .6 11 .4 11 .4 15 .5 15 .5 11 .8 6 .1* QV Investors Inc .

Global Equity (Sprucegrove) 16 .1 0 .5 7 .4 10 .7 10 .7 17 .7 16 .0 11 .7* 5 .9* Sprucegrove

Global Equity (Templeton) 289 .2 0 .7 8 .5 15 .5 15 .5 22 .7 21 .8 15 .1 7 .3 Templeton

Global Equity (Aberdeen) 4 .1 0 .5 5 .7 5 .2 5 .2 12 .3* 12 .6* 10 .4* - Aberdeen

Global Research Equity (MFS) 38 .5 2 .4 8 .0 19 .8 19 .8 21 .7 19 .5 13 .9 6 .7 MFS

Global Select Equity (Pyramis) 6 .8 1 .6 9 .0 20 .0 20 .0 23 .4 21 .6 15 .4 - Pyramis

Global Equity Low Volatility ACWI (TD) 26 .7 2 .1 6 .6 15 .8 15 .8 21 .0 18 .2* - - TD

Global Equity (Mawer) 9 .5 3 .2 11 .3 23 .3* 23 .3* 24 .8* 23 .2* 19 .2* - Mawer

Global Equity Endeavour (Invesco) 1 .2 2 .7 4 .8 21 .6 21 .6 23 .2* 21 .7* 18 .0* 10 .9* Invesco

Global Equity Small Cap (Deutsche AWM)5 86 .4 1 .9 6 .8 21 .2 21 .2 22 .9 20 .3 14 .3 - Deutsche AWM

Global Equity Small Cap (Mawer) 24 .2 3 .7 8 .7 30 .7 30 .7 30 .7* 31 .0* 24 .6* - Mawer

International Equity Index (BlackRock) 31 .2 2 .9 8 .5 19 .2 19 .2 17 .5 16 .9 11 .0 5 .1 BlackRock

International Equity 366 .8 2 .9 8 .8 24 .4 24 .4 19 .2 18 .5 11 .6 - Industrial Alliance

International Equity (Hexavest) 27 .0 4 .2 6 .2 19 .2 19 .2 17 .4 15 .9 11 .0 6 .0 Hexavest

International Equity (Sprucegrove) 2 .0 1 .0 5 .7 9 .1 9 .1 12 .6 13 .0 8 .3* 5 .2* Sprucegrove

International Equity (Templeton) 68 .2 2 .1 8 .1 17 .7 17 .7 17 .8 17 .2 11 .1 5 .4 Templeton

International Equity (Aberdeen) 6 .6 0 .7 5 .1 2 .9 2 .9 8 .5* 9 .7* 7 .4* - Aberdeen

International Equity (Jarislowsky) 14 .9 1 .8 8 .4 17 .1 17 .1 15 .9 17 .0 13 .1 6 .2 Jarislowsky

International Equity (Mawer) 7 .0 2 .8 9 .0 23 .0 23 .0 20 .1* 20 .4* 14 .6* 9 .6* Mawer

International Equity (MFS) 20 .2 2 .1 6 .7 21 .0 21 .0 17 .0 17 .2 11 .7 6 .1 MFS

U .S . Equity Index (BlackRock)4 71 .2 2 .7 11 .0 21 .6 21 .6 28 .5 24 .6 20 .3* 9 .2* BlackRock

U .S . Equity Index Non-Registered (BlackRock)6 14 .0 2 .7 10 .9 21 .3 21 .3 28 .2* 24 .3* 20 .0* 8 .8* BlackRock

U .S . Dividend Growth 195 .1 1 .0 9 .3 22 .6 22 .6 - - - - Industrial Alliance

U .S . Equity 325 .8 1 .8 10 .1 24 .8 24 .8 29 .9 25 .4 19 .5 - Industrial Alliance

U .S . Equity (Jarislowsky) 23 .2 3 .2 10 .6 24 .2 24 .2 29 .5 25 .5 20 .8 9 .8 Jarislowsky

U .S . Equity (Mawer) 24 .1 1 .9 10 .4 21 .0 21 .0 28 .7* 24 .6* 20 .6* 10 .2* Mawer

U .S . Equity Core (MFS) 29 .3 2 .5 9 .3 21 .0 21 .0 27 .7 24 .4 18 .6 8 .9 MFS

U .S . Equity (Fiera Capital) 5 .1 1 .6 9 .6 22 .0 22 .0 31 .8 26 .5 21 .0 8 .1 Fiera Capital

Emerging Markets Equity Index (BlackRock)3 3 .4 (0 .2) 3 .0 1 .6 1 .6 4 .0* - - - BlackRock

Emerging Markets (Aberdeen)3 25 .1 1 .3 4 .3 3 .6* 3 .6* 4 .0* 8 .7* 5 .2* - Aberdeen

Emerging Markets (Templeton)3 2 .4 0 .7 5 .4 (4 .9) (4 .9) 0 .7 4 .3 (0 .5)* 4 .9* Templeton

Alternative/Specialty FundsBalanced-Risk Allocation (Invesco) 7 .7 (1 .1) 0 .6 (1 .3) (1 .3) 3 .6* - - - Invesco

Global Developed Real Estate Index (BlackRock)3 3 .3 5 .1 8 .5 19 .8 19 .8 18 .9* - - - BlackRock

Global Real Estate (Pyramis)3 18 .9 4 .6 8 .4 23 .2 23 .2 20 .3 21 .8 16 .5 - Pyramis

Global Infrastructure Equity Index (BlackRock)3 2 .6 0 .0 0 .7 3 .1 3 .1 17 .5* - - - BlackRock

Global Infrastructure (Lazard)3 23 .1 (1 .2) 4 .3 11 .3 11 .3 20 .0 19 .8 15 .5* - Lazard

Canadian Resources (Invesco)3 0 .3 (7 .4) (3 .6) (27 .8) (27 .8) (15 .2) (9 .8)* (10 .5)* 1 .2* Invesco

Global Direct Real Estate - 100% (UBS)3 17 .6 0 .2 0 .2 5 .6* 5 .6* 7 .9* - - - UBS

Global Direct Real Estate - Portfolios (UBS)3 45 .5 1 .1 1 .9 7 .6* 7 .6* 8 .6* - - - UBS

Gross returns

As at December 31, 2015 Group savings and retirement

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Returns as at December 31, 2015 (%)

Special 1 day 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years

Guaranteed InvestmentsPublished rates 0 .05 0 .25 1 .05 1 .10 1 .20 1 .35 0 .55 0 .55 0 .55 0 .55 1 .50

Benchmark indexes†

Returns as at December 31, 2015

Simple returns2 Compound annual returns1 month

%3 months

%YTD

%1 year

%3 years

%4 years

%5 years

%10 years

%

Money market indexFTSE TMX Canada 91 Day T-Bill Index 0 .0 0 .1 0 .6 0 .6 0 .8 0 .9 0 .9 1 .7

Bond indexesFTSE TMX Canada Short Term Bond Index 0 .5 0 .5 2 .6 2 .6 2 .5 2 .4 2 .8 3 .9

FTSE TMX Canada Long Term Bond Index 2 .0 1 .6 3 .8 3 .8 4 .6 4 .7 7 .3 6 .4

FTSE TMX Canada Universe Bond Index 1 .1 1 .0 3 .5 3 .5 3 .6 3 .6 4 .8 5 .0

Equity indexesS&P/TSX Composite Index (3 .1) (1 .4) (8 .3) (8 .3) 4 .6 5 .3 2 .3 4 .4

S&P/TSX SmallCap Index (1 .6) 1 .1 (13 .3) (13 .3) (3 .1) (2 .9) (5 .7) 0 .0

MSCI - ACWI Index (Can . $) (net ret .) 1 .9 8 .5 16 .5 16 .5 20 .2 18 .5 13 .3 6 .6

MSCI - World Index (Can . $) (net ret .) 2 .0 9 .0 18 .3 18 .3 22 .4 20 .0 14 .9 6 .8

MSCI - World Index (Local $) (net ret .) (2 .2) 6 .2 2 .1 2 .1 13 .0 13 .7 9 .6 4 .9

MSCI - World Small Cap Index (Can . $) 1 .2 7 .8 19 .4 19 .4 23 .7 21 .6 15 .4 8 .3

MSCI - EAFE Index (Can . $) (net ret .) 2 .4 8 .2 18 .3 18 .3 17 .2 16 .6 10 .7 4 .8

S&P 500 Index (Can . $) 2 .2 10 .6 21 .0 21 .0 28 .5 24 .6 20 .3 9 .2

MSCI - Emerging Markets Index (Can . $) 1 .5 4 .1 1 .9 1 .9 4 .5 7 .2 2 .1 5 .7

Composite indexes (portfolios)Each portfolio index is composed of a set of benchmark sub-indexes, listed above . These sub-indexes are linked to the portfolios’ underlying funds . The weighting used is equalto the asset allocation of the portfolios’ underlying funds. The asset allocation varies periodically. The current allocation appears on the Composition of the ATTITUDE portfolios(in %) page of the Quarterly Update publication .

† Please refer to the Legal Notices at the end of this publication for more information about these Indexes .

Gross returns

As at December 31, 2015 Group savings and retirement

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Legal Notices

Industrial Alliance Investment Management Inc . is an affiliate of iA Financial Group and has entered into license agreements with the Index Providers (as defined below) to use the indexes and trademarks referred to in iA Financial Group’s publications . All rights in the indexes vest in the Index Providers and/or their respective licensors .

S&P Dow Jones Indices LLC, FTSE International Limited, MSCI Inc ., Barclays, Salomon Brothers and Nasdaq is each an “Index Provider” . The funds offered by iA Financial Group are not sponsored, endorsed, issued, sold or promoted by the Index Providers and/or their respective licensors . The latter shall bear no liability whatsoever with respect to any such funds and underlying data contained herein . Index Providers and/or their licensors make no express or implied warranties with respect to the funds, nor do they make any representation regarding the advisability of investing in the funds . No further distribution or use of the Index Providers’ Data is permitted without their express written consent .

Financial and economic publications of iA Financial Group are not written, reviewed or approved by the Index Providers . Holders should refer to the relevant documents of each Index Provider for more information on any index .

Attributions

FTSE

Where FTSE indexes are used or referenced: FTSE International Limited (“FTSE”) © FTSE [2015] . FTSE® is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence . “NAREIT®” is a trade mark of the National Association of Real Estate Investments Trusts and “EPRA®” is a trade mark of European Public Real Estate Association and all are used by FTSE under licence .

MSCI

The International Equity Index Fund is indexed to an MSCI index . The fund is not sponsored, endorsed, sold or promoted by MSCI inc . (“MSCI”), any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index (collectively, the “MSCI parties”) . The MSCI indexes are the exclusive property of MSCI . MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by Industrial Alliance Investment Management Inc, an affiliate of Industrial Alliance Insurance and Financial Services Inc . None of the MSCI parties makes any representation or warranty, express or implied, to the issuer or owners of these funds or any other person or entity regarding the advisability of investing in funds generally or in the fund particularly or the ability of any MSCI index to track corresponding stock market performance . MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI indexes which are determined, composed and calculated by MSCI without regard to the fund or the issuer or owners of the fund or any other person or entity . None of the MSCI parties has any obligation to take the needs of the issuer or owners of the fund or any other person or entity into consideration in determining, composing or calculating the MSCI indexes . None of the MSCI parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of the fund to be issued or in the determination or calculation of the equation by or the consideration into which the fund is redeemable . Further, none of the MSCI parties has any obligation or liability to the issuer or owners of the fund or any other person or entity in connection with the administration, marketing or offering of the fund .

Although MSCI shall obtain information for inclusion in or for use in the calculation of the MSCI indexes from sources that MSCI considers reliable, none of the MSCI parties warrants or guarantees the originality, accuracy and/or the completeness of any MSCI index or any data included therein . None of the MSCI parties makes any warranty, express or implied, as to results to be obtained by the issuer of the fund, owners of the fund, or any other person or entity, from the use of any MSCI index or any data included therein . None of the MSCI parties shall have any liability for any errors, omissions or interruptions of or in connection with any MSCI index or any data included therein . Further, none of the MSCI parties makes any express or implied warranties of any kind, and the MSCI parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to each MSCI index and any data included therein . Without limiting any of the foregoing, in no event shall any of the MSCI parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages .

No purchaser, seller or holder of this security, product or fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this security without first contacting MSCI to determine whether MSCI’s permission is required . Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI .

For more information about the MSCI Indexes, visit https://www .msci .com/indexes .

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Head Office1080 Grande Allée West PO Box 1907, Station Terminus Quebec City, Qc G1K 7M3

Telephone: 418-684-5222 Toll free: 1-800-567-5670 Fax: 418-684-5187 ia.ca [email protected]

Industrial Alliance

Halifax238 Brownlow Avenue, Suite 320 Dartmouth, NS B3B 1Y2


Quebec City925 Grande Allée West, Suite 420 Quebec City, QC G1S 1C1


Montreal2000 McGill College Avenue, Suite 2100 Montreal, QC H3A 3H3


Toronto522 University Avenue, 13th Floor Toronto, ON M5G 1Y7


Calgary777 8th Avenue, S.W., Suite 2000 Calgary, AB T2P 3R5

Telephone: 403-218-3248 Toll free: 1-888-532-1505, extension 248 Fax: 1-855-780-2375 [email protected]

Vancouver1188 West Georgia Street, Suite 1910 Vancouver, BC V6E 4A2

Telephone: 604-689-0388, extension 223 Toll free: 1-800-557-2515 Fax: 604-689-0537 [email protected]

Group Savings and Retirement

iA Financial Group is a business name and trademark of Industrial Alliance Insurance and Financial Services Inc. ia.ca F9

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The Quarterly Update is written, designed and produced by the Client Service division of Industrial Alliance’s Investments and Communications departments.

Legal deposit: December 2015ISSN 1706-9556Bibliothèque nationale du QuébecNational Library of Canada

Cette publication est aussi disponible en français.

Quarterly Update Volume 20, Number 4Fourth Quarter, December 31, 2015

GROUP SAVINGS AND RETIREMENT

quarterly update - industrielle alliance · 2019-09-05 · 777 8th avenue, s.w., suite 2000...

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