INVESTMENT FUND. AUDITED FINANCIAL STATEMENTS and SUPPLEMENTARY FUND INFORMATION

Transcription

1 INVESTMENT FUND AUDITED FINANCIAL STATEMENTS and SUPPLEMENTARY FUND INFORMATION as at December 31, 2006

2 CONTENTS SUPPLEMENTAL INFORMATION (Unaudited) Investment management fees Additional financial statements Rates of return i

3 Supplement Information (Unaudited) 185

4 Investment management fees We charge investment management fees for management of the investment funds. We deduct the investment management fees plus GST from each investment fund on a valuation day before we calculate that fund s unit value. The investment management fees are paid to London Life. Investment management fees are calculated as a percentage of the market value of each investment fund. The amount of the fee varies depending on the fund. For more information, see the Annual investment management fees below. For our investment funds that invest in other funds, there is no duplication of investment management fees. The investment management fees shown are the total of the investment management fees charged by the investment fund and the underlying fund. Operating expenses In addition to investment management fees, we charge other expenses to the investment funds. These other expenses are for the operation of the funds and your policy. They include legal, safekeeping, brokerage, administration, audit fees and taxes. We deduct these other expenses, plus GST where applicable, from each investment fund on a valuation day, before we calculate that fund s unit value. Annual investment management fee and management expense ratios Fund name Investment management fee Management Expense Ratio (as at December 31, 2006) Asset-allocation funds Conservative Profile Moderate Profile Balanced Profile Advanced Profile Aggressive Profile Cash and cash equivalent funds Money Market (LLIM) Fixed-income funds Fixed-income Profile Bond (LLIM) Income (LLIM) Mortgage (LLIM) Government Bond (GWLIM) Canadian Fixed Income (Laketon) Fund name Investment management fee Management Expense Ratio (as at December 31, 2006) Income (Mackenzie) Growth & Income (Mackenzie) Balanced (AIM Trimark) Growth & Income (AGF) Balanced (Beutel, Goodman) Canadian equity funds Canadian Equity Profile Canadian Equity (LLIM) Dividend (LLIM) Growth Equity (LLIM) Canadian Equity (GWLIM) Mid Cap Canada (GWLIM) Dividend (Mackenzie) Canadian Equity Growth (Mackenzie) Larger Company (Mackenzie) Equity (Mackenzie) Smaller Company (Mackenzie) Canadian Equity Growth (AIM Trimark) Growth Equity (AGF) Canadian Equity (Beutel, Goodman) Canadian specialty funds Ethics (GWLIM) Real Estate (GWLIM) Science and Technology (GWLIM) Canadian Resource (Mackenzie) Precious Metals (Mackenzie) Canadian Opportunity (Mackenzie) Foreign equity funds Global Equity Profile U.S. Equity (LLIM) Global Equity (LLIM) International Equity (JPMorgan) International Stock (Mackenzie) Foreign Equity (Mackenzie) U.S. Growth Leaders (Mackenzie) Global Opportunity (Mackenzie) American Growth (AGF) Foreign specialty funds U.S. Growth Sectors (LLIM) Asian Growth (AGF) European Equity (Setanta) We have the right to change the investment management fees at any time. If we do, we ll tell you in writing 60 days before we make the change. Any amount that is allocated to an investment fund is invested at the risk of the policyholder and may increase or decrease in value. Balanced funds Diversified (LLIM) Balanced Growth (LLIM) North American Balanced (LLIM) Equity/Bond (GWLIM) Canadian Balanced (Mackenzie)

5 Additional financial statements Semi-annual unaudited financial statements, as at June 30, 2007 will be available upon written request after September 30, 2007 at the address below. In addition, copies of the simplified prospectus, annual information form, financial highlights and audited financial statements or the disclosure documents for all secondary or underlying funds are available upon written request to London Life at the following address: London Life Insurance Company 255 Dufferin Avenue London, ON N6A 4K1 Attention: Semi-annual financial statements Individual Retirement and Investment Services Marketing, T

6 FREEDOM FUNDS TM RATES OF RETURN CIR Codes December 2006 Unit Value $ Inception Date Asset Allocation Funds Conservative Profile Fund CSPR Oct n/a 5.19 Moderate Profile Fund MOPR Oct n/a 5.99 Balanced Profile Fund BAPR Oct n/a 5.65 Advanced Profile Fund ADVPR Oct n/a 5.66 Aggressive Profile Fund AGGPR Oct n/a 7.41 Lifecycle Profile Funds Income Profile Fund 3 INCPR Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2010 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2015 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2020 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2025 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2030 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2035 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2040 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2045 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2050 Profile Fund P Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a Cash and Cash Equivalent Funds Money Market Fund (London Capital) 1,2 MML Nov Fixed Income Funds Fixed Income Profile Fund FINPR Nov n/a 3.86 Bond Fund (London Capital) 2 BL Dec Income Fund (London Capital) 2 INL Jul n/a 6.68 Mortgage Fund (London Capital) 2 ML Jul Government Bond Fund (GWLIM) GOBG Jul n/a 3.22 Canadian Fixed Income (Laketon) FINMF Jul n/a 3.33 Balanced Funds Diversified Fund (London Capital) 2 DL Jan Balanced Growth Fund (London Capital) 2 BAGL Jul n/a 3.99 North American Balanced Fund (London Capital) 2 NABAL Jul n/a 3.34 Equity/Bond Fund (GWLIM) E/BG Jul n/a 4.65 Canadian Balanced Fund (Mackenzie) CBAMF Jul n/a 6.66 Income Fund (Mackenzie) INMF Jul n/a 6.77 Growth and Income Fund (Mackenzie) GINMF Jul n/a 5.39 Balanced (AIM Trimark) BALAT Nov n/a 6.48 Growth and Income Fund (AGF) G&INA Jul n/a 6.24 Balanced Fund (Beutel, Goodman) BABG Jul n/a 5.11 Canadian Equity Funds Canadian Equity Profile Fund CEQPR Nov n/a Equity Profile Fund 3 EQUPR Dec-06 n/a n/a n/a n/a n/a n/a n/a n/a n/a Canadian Equity Fund (London Capital) 2 CEL Dec Dividend Fund (London Capital) 2 DVL Jul n/a Growth Equity Fund (London Capital) 2 GEL Jul n/a 6.65 Canadian Equity Fund (GWLIM) CEG Jul n/a 7.64 Mid Cap Canada Fund (GWLIM) MDCPG Jul n/a Dividend Fund (Mackenzie) DVMF Jul n/a 9.85 Canadian Equity Growth Fund (Mackenzie) CEGMF Jul n/a 5.53 Larger Company Fund (Mackenzie) LCOMF Jul n/a 5.36 Equity Fund (Mackenzie) EMF Jul n/a 5.23 Smaller Company Fund (Mackenzie) SCOMF Nov n/a 6.59 Canadian Equity Growth (AIM Trimark) CEGAT Nov n/a Growth Equity Fund (AGF) GEA Jul n/a 8.29 Canadian Equity Fund (Beutel, Goodman) 5 CEBG Jul n/a month 3 month YTD 1 year Annual compounded rates of return as of month end 2 year 3 year 5 year 10 year From Inception continued on next page 188

7 CIR Codes December 2006 Unit Value $ Inception Date 1 month 3 month Annual compounded rates of return as of month end Canadian Specialty Funds Ethics Fund (GWLIM) ETHG Nov n/a Real Estate Fund (GWLIM) REG Jul n/a 7.09 Science and Technology Fund (GWLIM) 4 SCTEG Nov n/a 0.27 Canadian Resource (Mackenzie) CRSMF Jul n/a Precious Metals Fund (Mackenzie) PMTMF Jul n/a Canadian Opportunity Fund (Mackenzie) COPMF Jul n/a 5.61 Foreign Equity Funds Global Equity Profile Fund GEQPR Nov n/a 1.49 U.S. Equity Fund (London Capital) 2 USEL Jan Global Equity Fund (London Capital) 2 GLEL Jul n/a International Equity Fund (JPMorgan) IEJ Jul International Stock Fund (Mackenzie) ISKMF Nov n/a 3.97 Foreign Equity Fund (Mackenzie) FEMF Nov n/a 3.63 U.S. Growth Leaders (Mackenzie) UGLMF Jul n/a Global Opportunity (Mackenzie) GOPMF Jul n/a American Growth Fund (AGF) AGA Jul n/a Foreign Specialty Funds U.S. Growth Sectors Fund (London Capital) 2 USGSL Nov n/a Asian Growth Fund (AGF) ASGA Jul n/a 6.66 European Equity Fund (Setanta) EES Jul n/a 0.32 YTD 1 year 2 year 3 year 5 year 10 year From Inception Any amount that is allocated to an investment fund is invested at the risk of the policyholder and may increase or decrease in value. A description of the key features of Freedom Fund, Marketwatch, Freedom Fund RRIF, LIF or LRIF individual variable insurance contract is contained in the information folder, available from your Freedom 55 Financial Security Advisor. The indicated rates of return for one, two, three, five and 10 years columns, as well as the From Inception column, are annual compounded returns for the period ending December 29, 2006 including changes in the unit values but does not take into account redemption fees or other applicable charges payable by the policyholder. The stated returns are net of investment management fees and operating expenses but does not reflect redemption fees or other charges. Therefore actual returns will be less than illustrated. Please note that unit values and investment returns will fluctuate and past performance is not necessarily indicative of future performance. 1 The annualized current yield and effective yield for the London Life Money Market Fund (LLIM) for the seven day period ending December 29, 2006 are per cent and per cent respectively. This is an annualized historical yield based on the seven day period ending on December 29, 2006, and does not represent an actual one year return. 2 London Life Investment Management Ltd. (LLIM) changed its name to London Capital Management Ltd. effective August New funds cannot show fund performance data until fund is one-year old. 4 The Canadian Science and Technology fund (GWLIM) has changed its name to Science and Technology (GWLIM). 5 The North American Equity fund (Beutel, Goodman) has changed its name to Canadian Equity (Beutel, Goodman). Freedom Fund, Freedom Funds, London Life and design are trademarks of London Life Insurance Company. 189

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9 London Life and design, Freedom Fund and Freedom Funds are trademarks of London Life Insurance Company