EcoStrategist in brief Ecoflex / My Education

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1 EcoStrategist in brief Economic and Financial Bulletin May 3, 207 INVESTMENT FUNDS Sébastien Mc Mahon, MEcon., PRM, CFA Frédéric Gagnon, MFin or ia.ca/economy Europe s economic situation is clearing up World The risks associated with the disintegration of the European Union seem to be dissipating with the convincing victory of Emmanuel Macron, who was elected as the president of France on May 4, 207. This positive outcome comes on top of the positive surprises in economic data, which was recently reflected in a strengthened euro. It will be interesting to see whether this change in tone will influence the European Central Bank (ECB), which continues to promote maintaining accommodative monetary conditions to further stimulate inflation in the Eurozone. Exchange rate USD/EUR Euro depreciation.04 Euro appreciation.02 05/6 07/6 09/6 /6 0/7 03/7 05/7 North America In May, the Organization of the Petroleum Exporting Countries (OPEC) decided to extend its strategy to reduce production by nine months, to support the price of oil. Production has already seen a 6 reduction since November. However, this strategy seems unlikely, for now, to bear fruit due to the uptick in American oil production. The United States has access to major technological advances in the shale oil sector, which continuously reduces its production costs. This results in a veritable tug-of-war in the oil market, which translates into a barrel price with no clear direction. Oil market: Tug of war Daily production of crude oil (in millions of barrels) U.S. (rhs) OPEC (lhs) Financial markets Global stock markets have been performing well since the beginning of the year, in response to the synchronous recovery of prospects for economic growth and the strength of the technology sector. The Canadian market, however, is lagging behind with a return of almost 2. Canada s exposure to a fragile oil industry, as well as continued uncertainty with respect to the real estate market and trading agreements with the United States seem to contribute to the negative sentiment of foreigners toward Canadian assets. Stock markets: Canada trailing behind Total return (local currency) of major equity indices in 207 MSCI - Emerging Markets MSCI - Europe S&P 500 MSCI - Pacific S&P/TSX Composite

2 Table of net returns as at May 3, 207 Unit Value Net assets in millions Simple returns 2 Compound annual returns MER 3 Investment Advisor Focus Funds Focus Prudent Various Managers Focus Moderate (0.) Various Managers Focus Balanced (0.3) Various Managers Focus Growth (0.5) Various Managers Focus Aggressive (0.7) Various Managers Selection Funds Selection Prudent (0.) Various Managers Selection Moderate (0.4) Various Managers Selection Balanced (0.5) Various Managers Selection Growth (0.7) Various Managers Selection Aggressive (.0) Various Managers Income Funds Money Market Short Term Bond (0.) (0.2) Bond , Strategic Corporate Bond (0.) * ia Clarington Tactical Bond * ia Clarington Real Return Bond (.7) 0.9 (.6)* Diversified Funds Diversified Security Diversified ,367.2 (0.) Diversified Opportunity (0.3) Canadian Balanced (QV) (.) 0.0 (0.5) * 2.* 3.60 QV Investors Inc. SRI Balanced (Inhance) * Vancity Diversified Income (0.7) Strategic Income (0.4) * ia Clarington Global Diversified (Loomis Sayles) Loomis Sayles Tactical Income (0.4) * ia Clarington Canadian Equity Funds Strategic Equity Income (0.4) ia Clarington Dividend Growth (2.0) Canadian Conservative Equity (Leon Frazer) (2.7) (2.3) (2.7) 5.9 (2.) Leon Frazer Canadian Equity Index (.4) (0.) Select Canadian (2.) (.3) (.3) 8.0 (.) Canadian Equity Value (.4) Canadian Equity (Taylor AM) (0.4) (2.2) (.8) Taylor AM Fidelity True North (0.9) Fidelity Canadian Equity Growth (.5) (0.) Fidelity Canadian Opportunities (.0) Fidelity Canadian Equity Small Cap (QV) (2.5) (.7) (4.8) * 4.7* 3.95 QV Investors Inc. EcoStrategist in brief / / May 3,

3 Table of net returns as at May 3, 207 U.S. & International Equity Funds Unit Value Net assets in millions Simple returns 2 Compound annual returns MER 3 Investment Advisor Global Dividend (Dynamic) Dynamique Global Equity Global Equity (Templeton) Templeton Global Opportunities (Radin) (2.2) * Radin Capital Partners Fidelity NorthStar (0.3) Fidelity International Equity Index (BlackRock) BlackRock International Equity * International Equity (Templeton) Templeton Fidelity European Equity Fidelity U.S. Equity Index (BlackRock) (0.) BlackRock U.S. Dividend Growth (2.2) (0.6) U.S. Equity (2.2) (0.5) U.S. Equity (Sarbit) - Currency Neutral (0.5) * Sarbit Specialty Funds Asian Pacific (Dynamic) (0.7) Dynamic Emerging Markets (Mackenzie) (0.5) 3.5 (0.8) 4.42 Mackenzie Cundill Global Health Care (Renaissance) CIBC Real Estate Income U.S. DAQ Index Education Savings Plan Diploma Elementary (0.) Diploma Secondary Not offered to new contract subcribers Diploma Dividend (2.0) (0.6) Multi-Strategy (0.4) (2.) (.2) (3.0) (0.9) 3.9 (2.3) 4.26 Lyxor Asset Manag. Returns after deduction of MER (Management expense ratio). Past performance is not a guarantee of future returns. The EcoStrategist in Brief economic and financial bulletin, produced monthly, and its more exhaustive quarterly version, are available at ia.ca, under Individuals, Savings and Retirement, Economic and Financial Publications. Total net assets of the fund including individual and group contracts. 2 The rates for the period are non-annualized. 3 Management expense ratio (GST and HST included). 4 has managed this fund since March 200. Prior to that date, it was managed by Legg Mason. 5 Not offered in registered contracts and TFSAs 6 Fund closed to new investments as of June 30th, 205. * 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. EcoStrategist in brief / / May 3,

4 Total Return Reference indexes 2 Returns as at May 3, 207 Indexes related to Income Funds Simple returns Compound annual returns FTSE TMX Canada 9 Day T-Bill Index FTSE TMX Canada Short Term Bond Index FTSE TMX Canada Universe Bond Index SB - World Government Bonds (Can. ) Indexes related to Canadian Equity Funds S&P/TSX 60 (.2) S&P/TSX Completion Index (.7) (0.2) S&P/TSX Composite Index (.3) S&P/TSX Capped Composite Index (.3) Indexes related to U.S. & International Equity Funds S&P 500 (Can. ) MSCI - World (Can. ) MSCI - World Small Cap. (Can. ) (0.5) MSCI - EAFE (Can. ) MSCI - EAFE (Can. ) (Reuters) MSCI - Europe (Can. ) Index related to Specialty Funds MSCI - AC Asian Pacific Free (Can. ) MSCI - Emerging Markets (Can. ) MSCI - World Health Care (Can. ) NASDAQ 00 (Can. ) S&P/TSX Capped REIT Index (0.4) Exchange Rate (Can. / US ) Variation Compound annual variation As at May 3, 207:.3507 (.2) Exchange Rate (US / Can. ) As at May 3, 207: (.9) (0.7) (3.2) (7.0) (5.2) (2.3) The rates for the period are non-annualized. 2 Please refer to the Legal Notices on page 5 for more information aboute these indexes. EcoStrategist in brief / / May 3,

5 Legal Notices, Investment Management Inc. ( IAIM ) is an affiliate of ia Financial Group and is authorized by 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, FTSE TMX Global Debt Capital Markets Inc., Frank Russel Company, MSCI Inc., Citigroup Index LLC and Nasdaq OMX Group Inc. 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 [206]. 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. TMX is a trade mark of TSX Inc. and is used under licence. Global Industry Classification Standard Where the Global Industry Classification Standard ( GICS ) is used or referenced: the GICS was developed by and is the exclusive property and a service mark of MSCI Inc. ( MSCI ) and Standard & Poor s Financial Services LLC ( S&P ) and is licensed for use by IAIM. Neither MSCI, S&P, nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications 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. ia Financial Group is a business name and trademark of Insurance and Financial Services Inc. EcoStrategist in brief / / May 3,

6 EcoStrategist in brief Economic and Financial Statistics as at May 3, 207 As at As at Canada - Unemployment rate Canada - CPI (year/year variation).6.2 Canada - GDP (year/year variation) U.S. - Unemployment rate U.S. - CPI (year/year variation) U.S. - GDP (year/year variation) year Canada Bonds year Canada Bonds Oil (West Texas) (US ) Gold (US ),268.0,57.5 CRB Commodities Index (US ) Exchange rate Can. /US Most recent data available at such date ia.ca ia Financial Group is a business name and trademark of Insurance and Financial Services Inc. F95-2A(7-06) EcoStrategist in brief / / May 3,