QUARTERLY PERFORMANCE OF THE SSQ STRATEGY GIFs As at March 31, 2017

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1 QUARTERLY PERFORMANCE OF THE SSQ STRATEGY GIFs For advisors' use only SSQ Strategy GIFs: These funds are for investors seeking to maximize returns through active management without straying from the risk level associated with their investor profile. Regular monitoring is combined with automatic quarterly rebalancing. The fund may also be rebalanced during the quarter when it moves away from the strategic target allocation of one or another asset class. PERFORMANCE OF SSQ BALANCED STRATEGY GIF MARKET REVIEW AND PERFORMANCE OF KEY BENCHMARK INDICES Canadian bond yields remained at virtually the same level as in the previous quarter. However, credit spreads narrowed, which benefited credit bonds (other than federal). For the quarter, the FTSE TMX Canada Universe index generated a return of 1.24%. The quarter was positive for the Canadian stock market (S&P/TSX) with a return of 2.14%. Other than Energy and Health Care, all of the other sectors outperformed the S&P/TSX. The global equity index (MSCI World) posted a quarterly return of 5.43% in local currency and 5.79% when converted into Canadian dollars. The U.S. equity index (S&P 500) posted a return of 6.07% in U.S. dollars and 5.48% in Canadian currency as the loony gained 0.55% in relation to the greenback. The European equity index (MSCI Europe) finished the quarter in positive territory with a return of 6.02% in local currency and 6.85% when converted into Canadian dollars. The equity index for the Pacific region (MSCI Pacific) posted a return of 2.53% in local currency and 6.33% when converted into Canadian dollars

2 QUARTERLY PERFORMANCE OF THE SSQ STRATEGY GIFS VALUE ADDED BY RISK PROFILE The SSQ Strategy Guaranteed Income Funds (GIFs) are actively managed to surpass the performance of their benchmark portfolio while maintaining an adequate level of risk. The valued added serves to determine whether the funds reached this objective. PERFORMANCE - 3 MONTHS Conservative Balanced Growth Aggressive SSQ GIFs 2.53% 2.70% 3.23% 3.45% Benchmark portfolio 2.16% 2.73% 2.91% 3.53% Value added 0.37% -0.03% 0.32% -0.08% ATTRIBUTION OF QUARTERLY PERFORMANCE BY ASSET CLASS The following graph shows a breakdown of the quarterly performance of the SSQ Balanced Strategy GIF by asset class. The fund is compared to its benchmark portfolio and the value added by active portfolio management is displayed. The other Strategy funds (Conservative, Growth and Aggressive) are made up of the same underlying funds albeit in different proportions, so performance attribution is similar but in different proportions. The data shown do not take into account the cash effect and thus may differ somewhat from the abovementioned actual results. Fixed income fund managers outperformed (0.11%) their benchmark index (FTSE TMX Canada Universe). All of the "universe" bond fund managers outperformed their benchmark index. Canadian equity fund managers underperformed their benchmark index (S&P/TSX). The Montrusco Bolton fund underperformed its benchmark index primarily due to the poor performance of the Quantitative Canadian Equity strategy, which accounts for 20% of the SSQ Montrusco Bolton Canadian Equity GIF. In contrast, Triasima, which had a difficult year in 2016, turned things around with a performance of 2.77% and value added of 0.36%. Canadian small cap equities underperformed large caps due to the small cap index's significant Energy weighting. Foreign equity fund managers slightly outperformed (0.13%) their benchmark index (MSCI World). The excellent performances recorded by the Carnegie International Equity fund and the Fiera Capital Global Equity fund, not only in relative terms (in relation to their benchmark index) but also in absolute terms, more than offset the relative underperformances of the Hexavest Global Equity All Countries fund and the Lazard Global Small Cap Equity fund

3 QUARTERLY PERFORMANCE OF THE SSQ STRATEGY GIFS CONTRIBUTION TO QUARTERLY PERFORMANCE BY PORTFOLIO MANAGER The SSQ Strategy GIFs are actively managed by reputable managers. The following graph breaks down the quarterly performance of the SSQ Balanced Strategy GIF by portfolio manager. During the quarter, the fund with the highest return was the Fiera Capital Global Equity fund, with a performance of 9.57%. Unlike the previous quarter, high-quality stocks led the way and propelled the fund to new heights. This performance was attributable to security selection in Financials and to the complete absence of Energy holdings. The only negative contributor to the SSQ Balanced Strategy GIF's absolute performance was the Fiera Capital Canadian Small Cap Equity fund. This underperformance was primarily due to security selection in the Consumer Discretionary, Consumer Staples, Materials and Industrials sectors. The Triasima Canadian Equity fund was the best contributor (in its asset class) to the SSQ Balanced Strategy GIF's performance due to the Information Technology overweight and Energy underweight. In addition, the exposure to Shopify, which gained 56% during the quarter, played a key role in the fund's performance. Following a difficult fourth quarter of 2016, the Carnegie Global Equity fund turned things around with a return of 9.27%. The Information Technology overweight and the Energy underweight, which had a negative impact in the previous quarter, account for the fund's excellent performance. GOVERNANCE PROCESS During the quarter, the SSQ Balanced and Aggressive Strategy GIFs slightly underperformed and the SSQ Conservative and Growth Strategy GIFs beat their benchmark portfolio. After analyzing all of the managers involved with these funds, the fund development team is comfortable with the current allocation within the fund portfolio and continues to have confidence in the external managers' ability to add value. Consequently, the team decided not to modify the fund's current allocation, although we will remain proactive with respect to asset allocation. Please bear in mind that the SSQ Strategy GIFs' asset allocation was modified significantly in June

4 QUARTERLY PERFORMANCE OF THE SSQ STRATEGY GIFS ASSET ALLOCATION OF STRATEGY AND CELESTIA GIFs (%) Any amount allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are applicable to an investor who opted for the Basic Guarantee. are calculated before deduction of the management expense ratio (MER) and net returns are calculated after deduction of the MER. The returns shown do not take into account sales, redemption, distribution or other optional charges that would have reduced returns. Returns are annualized, except for periods of less than one year. Past returns are not a reliable indicator of future performance. This method of calculating returns is in compliance with the industry standards established by the Canadian Life and Health Insurance Association. For more information on this calculation method, please contact SSQ Client Services at Please refer to our website for the most recent returns

5 QUARTERLY PERFORMANCE OF SSQ CELESTIA GIFs For advisors' use only SSQ Celestia GIFs: These funds are for investors seeking optimal diversification through the use of specialized funds and seeking greater return potential through the use of funds composed of income-generating securities. Regular monitoring is combined with automatic quarterly rebalancing. The fund may also be rebalanced during the quarter when it moves away from the strategic target allocation of one or another asset class. PERFORMANCE OF SSQ CELESTIA BALANCED GIF MARKET REVIEW AND PERFORMANCE OF KEY BENCHMARK INDEXES Canadian bond yields remained at virtually the same level as in the previous quarter. However, credit spreads narrowed, which benefited credit bonds (other than federal). For the quarter, the FTSE TMX Canada Universe index generated a return of 1.24%. The quarter was positive for the Canadian stock market (S&P/TSX) with a return of 2.14%. Other than Energy and Health Care, all of the other sectors outperformed the S&P/TSX. The global equity index (MSCI World) posted a quarterly return of 5.43% in local currency and 5.79% when converted into Canadian dollars. The U.S. equity index (S&P 500) posted a return of 6.07% in U.S. dollars and 5.48% in Canadian currency as the loony gained 0.55% in relation to the greenback. The European equity index (MSCI Europe) finished the quarter in positive territory with a return of 6.02% in local currency and 6.85% when converted into Canadian dollars. The equity index for the Pacific region (MSCI Pacific) posted a return of 2.53% in local currency and 6.33% when converted into Canadian dollars

6 QUARTERLY PERFORMANCE OF SSQ CELESTIA GIFs VALUE ADDED BY RISK PROFILE The SSQ Celestia Guaranteed Income Funds (GIFs) are actively managed to surpass the performance of their benchmark portfolio while maintaining an adequate level of risk. The valued added serves to determine whether the funds reached this objective. PERFORMANCE - 3 MONTHS Conservative Balanced Growth Aggressive SSQ GIFs 2.63% 3.13% 3.47% 3.84% Benchmark portfolio 2.38% 2.96% 3.39% 3.82% Value added 0.24% 0.17% 0.08% 0.02% ATTRIBUTION OF QUARTERLY PERFORMANCE BY ASSET CLASS The following graph shows a breakdown of the quarterly performance of the SSQ Celestia Balanced GIF by asset class. The fund is compared to its benchmark portfolio and the value added by active portfolio management is displayed. The other Celestia funds (Conservative, Growth and Aggressive) are made up of the same underlying funds albeit in different proportions, so performance attribution is similar but in different proportions. The data shown do not take into account the cash effect and thus may differ somewhat from the abovementioned actual results. Fixed income fund managers outperformed (0.21%) their benchmark index (FTSE TMX Canada Universe). All of the "universe" bond fund managers outperformed their benchmark index. The PIMCO Monthly Income fund turned in the group's best relative (in relation to its benchmark index) performance. Canadian equity fund managers underperformed (-0.14%) their benchmark index (S&P/TSX). The Guardian fund underperformed its benchmark index primarily due to the Energy overweighting. In contrast, Triasima, which had a difficult year in 2016, turned things around with a performance of 2.77% and value added of 0.36%. Foreign equity fund managers slightly outperformed (0.09%) their benchmark index (MSCI World). The excellent performances recorded by the Carnegie International Equity fund and the Hillsdale U.S. Equity fund, not only in relative terms but also in absolute terms, more than offset the Hexavest Global Equity fund's relative underperformance. As regards the specialized asset class, the Lazard Global Infrastructure fund had an excellent quarter in all respects

7 QUARTERLY PERFORMANCE OF SSQ CELESTIA GIFs CONTRIBUTION TO QUARTERLY PERFORMANCE BY PORTFOLIO MANAGER The SSQ Celestia GIFs are actively managed by reputable managers. The following graph breaks down the quarterly performance of the SSQ Celestia Balanced GIF by portfolio manager. All of the SSQ Celestia Balanced GIF contributed positively to the quarterly performance. The manager with the highest return was Lazard, for its Global Infrastructure mandate, with an absolute performance of 11.09%. This impressive showing was due to security selection (US railways and European toll roads). It should be noted that no portfolio holdings posted a negative return. The PIMCO Monthly Income fund was one of the most significant contributors to the SSQ Celestia Balanced GIF's performance due to the portfolio's high current yield and security selection in the highest-quality portion of the portfolio. After a difficult fourth quarter in 2016, the Carnegie International Equity fund turned things around with a return of 9.27%. The Information Technology overweight and the Energy underweight, which had a negative impact in the previous quarter, account for the fund's excellent performance. GOVERNANCE PROCESS During the quarter, the SSQ Celestia GIFs outperformed their benchmark portfolio. After analyzing all of the managers involved with these funds, the fund development team decided to add the CI Signature Corporate Bond fund to the SSQ Celestia GIF's balanced-to-aggressive profiles. This addition will make it possible to increase the SSQ Celestia GIFs current income in line with the focus on income generation characteristic of this family of portfolio funds. It will also serve to enhance diversification (geographic as well as asset classes) while boosting the potential long-term returns of these portfolio funds. Finally, this addition will reap the benefits of CI Signature's expert fixed income team while varying value added sources. Thanks to constant monitoring of our fund managers, we can confirm that we still have confidence in our managers' ability to add value. Please bear in mind that the SSQ Celestia GIF's asset allocation was significantly modified in June

8 QUARTERLY PERFORMANCE OF SSQ CELESTIA GIFs ASSET ALLOCATION OF STRATEGY AND CELESTIA GIFs (%) Any amount allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are applicable to an investor who opted for the Basic Guarantee. are calculated before deduction of the management expense ratio (MER) and net returns are calculated after deduction of the MER. The returns shown do not take into account sales, redemption, distribution or other optional charges that would have reduced returns. Returns are annualized, except for periods of less than one year. Past returns are not a reliable indicator of future performance. This method of calculating returns is in compliance with the industry standards established by the Canadian Life and Health Insurance Association. For more information on this calculation method, please contact SSQ Client Services at Please refer to our website for the most recent returns