Your Fund Selection Guide

Transcription

1 Your Fund Selection Guide Use this Guide, along with your Enrolment Guide, to understand the investments available through The Christian and Missionary Alliance in Canada Alliance Retiral Fund (ARF) Pension Plan.

2 About this Fund Selection Guide This Guide explains the funds available to you through your company s ARF Pension Plan and helps you make investment choices suited to your needs. Once you ve chosen your investments, please return to the Enrolment Guide to complete your enrolment. If you have questions about your investments You can contact your plan s advisor Reuter Benefits for assistance with choosing your investments. ( Call toll-free Online at using security code Via at retire@myretirement-alliance.com 2

3 Determine your investor style To Do! Circle one answer for each question. Write your score shown in brackets at the end of each answer in the box to the right of each question. Tally the scores you record for each question to get your total. Your age, the numbers of years remaining until you retire, and how you feel about risk will determine your investor style. Once you know your investor style, you can choose funds for your retirement savings. 1. What is your investment horizon when will you need this money? a. Within 3 years (0) b. 3-5 years (3) c years (5) d years (8) e years (10) Your score 2. What is your most important investment goal? a. To preserve your money (0) b. To see modest growth in your account (4) c. To see more significant growth in your account (7) d. To earn the highest return possible (10) 3. Please indicate which statement reflects your overall view of managing risk: a. I don t like risk and I am not prepared to expose my investments to any market fluctuations in order to earn higher long-term returns. (0) b. I am prepared to experience modest short-term market fluctuations in order to generate growth of capital. (2) c. I am prepared to experience average short-term market fluctuations in order to achieve a higher long-term return. (4) d. I want to maximize my long-term returns and am comfortable with significant short-term market fluctuations. (6) 3

4 4. If you owned an investment that declined by 20% over a short period, what would you do? a. Sell all of the remaining investment (0) b. Sell a portion of the remaining investment (2) c. Hold the investment and sell nothing (4) d. Buy more of the investment (6) 5. If you could increase your chances of improving your investment returns by taking more risk, would you: a. Be unlikely to take more risk (0) b. Be willing to take a little more risk with some of your portfolio (2) c. Be willing to take a lot more risk with some of your portfolio (4) d. Be willing to take a lot more risk with your entire portfolio (6) 6. The following picture shows three model portfolios and the highest and lowest returns each is likely to earn in any given year. Which portfolio would you be most likely to hold? a. Portfolio A (0) Best Return 8% Lowest Return -1% b. Portfolio B (3) Best Return 15% Lowest Return -6% Return (%) Portfolio A 15-6 Portfolio B Portfolio C c. Portfolio C (6) Best Return 22% Lowest Return -12% 7. After several years of following your retirement plan, you review your progress and determine you are behind schedule and will need to modify your strategy in order to retire at your preferred age. What would you do? a. Keep the same investments you currently hold, but increase your contributions as much as possible. (0) b. Slightly increase your exposure to riskier investments and slightly increase your contributions. (3) c. Move your entire portfolio to riskier investments, hoping to achieve the highest long-term return. (6) 4

5 8. Which statement best applies to your approach regarding achieving your retirement income goals on time? a. I must achieve my financial goal by my target retirement date. (0) b. I would like to come close to achieving my financial goal by my target retirement date. (2) c. If I have not reached my financial goal by my target retirement date, I have the flexibility to delay my target retirement date. (4) d. I re-evaluate my financial goals and target retirement date regularly and have the flexibility to adjust them to align with the performance of my investments. (6) Your total score: Match your score to an investor style below. If your score is between Your investor style is About your investor style 0 7 Conservative Protecting your money is your chief concern. You may be approaching retirement, or simply prefer to take a cautious approach to investing and preserve your money Moderate You want your money to grow, but are more concerned about protecting it. Retirement may be in your near future or you may prefer to be cautious with your investments and preserve your money Balanced You want a balance between growth and security although you will accept some risk to have the potential for higher returns over time Growth You want to increase your money and are somewhat comfortable riding the ups and downs of the market in exchange for the possibility of higher returns over the long term. You may have time on your side until you retire Aggressive You want to maximize the long-term growth of your retirement savings. You understand the ups and downs of the markets and are comfortable taking a lot of risk to maximize potential returns. You have plenty of time to wait out market cycles until you retire. My investor style is: 5

6 How to build your own portfolio To Do! Specify the percentage of contributions you want to invest in each fund in the Your investment instructions section on the Application form. Your investor style (from page 5): Find the sample portfolio that matches your investor style. You can use the sample portfolios as a guideline to help you choose individual funds. Conservative Investor Profile (0 7 Points) Target Mix 80% Fixed Income + 20% Equity Sample Portfolio for Alliance Retiral Fund Members Code Investment Account/Fund Name % 1001 Manulife 1 Year Guaranteed Interest Account 15% 1003 Manulife 3 Year Guaranteed Interest Account 15% 4142 Manulife Pyramis Canadian Bond Fund 40% 5132 Manulife MMF Monthly High Income Fund 20% 9034 C&MA Canadian Equity Fund 5% 9035 C&MA Foreign Equity Fund 5% Moderate Investor Profile (8 22 Points) Target Mix 60% Fixed Income + 40% Equity Sample Portfolio for Alliance Retiral Fund Members Code Investment Account/Fund Name % 1001 Manulife 1 Year Guaranteed Interest Account 10% 1003 Manulife 3 Year Guaranteed Interest Account 10% 4142 Manulife Pyramis Canadian Bond Fund 25% 5132 Manulife MMF Monthly High Income Fund 35% 9034 C&MA Canadian Equity Fund 10% 9035 C&MA Foreign Equity Fund 10% 6

7 Balanced Investor Profile (23 37 Points) Target Mix 40% Fixed Income + 60% Equity Sample Portfolio for Alliance Retiral Fund Members Code Investment Account/Fund Name % 4142 Manulife Pyramis Canadian Bond Fund 20% 5132 Manulife MMF Monthly High Income Fund 45% 9034 C&MA Canadian Equity Fund 20% 9035 C&MA Foreign Equity Fund 15% Growth Investor Profile (38 48 Points) Target Mix 20% Fixed Income + 80% Equity Sample Portfolio for Alliance Retiral Fund Members Code Investment Account/Fund Name % 4142 Manulife Pyramis Canadian Bond Fund 5% 5132 Manulife MMF Monthly High Income Fund 40% 9034 C&MA Canadian Equity Fund 30% 9035 C&MA Foreign Equity Fund 25% Aggressive Investor Profile (49 56 Points) Target Mix 10% Fixed Income + 90% Equities Sample Portfolio for Alliance Retiral Fund Members Code Investment Account/Fund Name % 5132 Manulife MMF Monthly High Income Fund 25% 9034 C&MA Canadian Equity Fund 40% 9035 C&MA Foreign Equity Fund 35% 7

8 Notes: You should consider how your savings outside of this plan are invested. Your other investments may already fulfill some parts of the sample portfolios in the above table. The guidelines provided are only suggestions. Where to find detailed fund information A summary and detailed description of the funds including the investment management fees and historical rates of returns for these funds available through your group program follows. You have now finished the fund selection process. Please return to Step four of the Enrolment Guide to complete your enrolment. 8

9 Rates of Return Overview The Christian and Missionary Alliance in Canada Registered Pension Plan Registered Pension Plan (policy ) Market-based Funds The investments available through your plan appear here. The rates of return in this chart reflect performance before investment management fees (IMFs) are deducted. Benchmark returns are also provided to help you compare fund performance. These returns, marked in italics, are for comparison purposes only and are not available for investment. Rates of return on December 31, 2015 Annualized Returns(%) 1 Annual returns(%) 2 Fund Code Fund Name IMF% 3 YTD 4 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year FIXED INCOME 4142 ML Pyramis Cdn Bond FTSE TMX Universe Bond Total Return Idx BALANCED 5132 ML MMF Monthly High Income Balanced Benchmark CANADIAN LARGE CAP EQTY 9034 C&MA Canadian Equity NaN n/a S&P/TSX Total Return GLOBAL EQUITY 9035 C&MA Foreign Equity NaN n/a MSCI World ($ Cdn) Guaranteed Interest Accounts (GIAs) The interest rates for the GIAs available through your plan appear here. These rates are as at December 31, Fund Code Fund Name Interest Rate 1000 Manulife Daily Interest.250% 1001 Manulife 1 Year GIA.450% 1003 Manulife 3 Year GIA.750% 1005 Manulife 5 Year GIA 1.100% Notes: 1 An annualized return is an average return that has been expressed as an annual (yearly) rate. 2 An annual return is the return of an investment over a 12 month period. As an example: a one year annual return as at June 30, 2012 would be from July 1, 2011 to June 30, The Investment Management Fees (IMFs) shown incorporate costs related to investment management services, record-keeping, administration and segregated fund operating expenses, and may include underlying fund operating expenses. Applicable taxes are not included in the IMFs. 4 Year to date (YTD) rates of return are not annualized. 5 The Manulife Monthly High Income Fund's primary objective is to provide investors with a steady flow of monthly income and capital growth. The fund invests in a variety of equity securities, fixed income securities and income trusts. 6 The Benchmark is comprised of 35% S&P/TSX Composite Total Return Index ($CA), 35% FTSE TMX Canada Universe Bond Index, 10% S&P 500 Composite Total Return Index ($CA), 10% MSCI EAFE Total Return Index ($CA), and 10% FTSE TMX Canada 91 Day Treasury Bill Index. 7 Conversions are based on Bank of Canada nominal noon exchange rates, which are published each business day at about 12:30 ET. Manulife Return These numbers represent the gross rate of return of the Manulife fund. Additional Historical Information In order to provide further historical information, we have included the returns of the underlying funds. 9

10 How to Read Fund Descriptions Volatility meter Low Fund (4) Benchmark (4) Based on 3 year standard deviation High How the underlying fund is invested Composition Canadian Fixed Income 94.26% United States Fixed Income 3.61% Foreign Fixed Income 1.40% Cash & Equivalents 0.73% Bond type Corporate Notes/Bonds 54.86% Provincial/Municipal Bonds 29.23% Govt. Agency Notes/Bonds 9.25% MBS 4.01% ABS 1.92% Convertible Bond 0.10% Other 0.63% Bond term Less than 1 Year 1.24% 1 to 3 Years 12.88% 3 to 5 Years 21.34% 5 to 10 Years 31.40% 10 to 20 Years 6.94% 20 to 30 Years 19.56% Greater than 30 Years 5.49% Other 1.15% Top holdings within the underlying fund (As at December 31, 2015) Ontario Province 2.850% 02-Jun % Can House No % 15-Jun % Ontario Province 4.200% 02-Jun % Ontario Province 3.500% 02-Jun % Can House No % 15-Dec % Can House No % 15-Dec % Canada 3.500% 01-Dec % Ontario Province 2.600% 02-Jun % Alberta Province 2.350% 01-Jun % Alberta Province 1.250% 01-Jun % 2 FIXED INCOME Code 4142 Manulife Pyramis Canadian Bond Fund Note: Effective February 1, 2016 the Manulife Fund name will change to Manulife FIAM Canadian Bond Fund UNDERLYING FUND -> Pyramis Canadian Bond Fund Objective The portfolio s investment objective is to generate returns that exceed the DEX Universe Bond Index (the Index ) by investing primarily in a well-diversified portfolio of Canadian dollardenominated debt securities. Managed by FIAM LLC Fund managers Brian Miron, Catriona Martin Inception date July 2002 Manulife inception date February 2014 Total assets $1,403.4 million Duration 7.98 Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees have been deducted. The shaded returns represent the underlying fund returns prior to the Manulife Fund s inception date. Manulife Pyramis Canadian Bond Fund - ($16,395) FTSE TMX Universe Bond Index CAD - ($16,333) FIAM Canadian Bond Trust 15,000 10,000 5, YTD Annual returns (%) Fund Benchmark Annualized compound returns (As at December 31, 2015) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. Since 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) inception (%) Volatility meter The volatility meter is a 25-point scale ranging from low to high that illustrates the amount that a fund s value is likely to fluctuate. Volatility is based on the standard deviation of monthly returns over a three-year period. Funds in operation for less than three years are rated using the longest time period available. For a fund or underlying fund where return history is less than one year, no volatility rating will appear. 4. How the underlying fund is invested The pie chart shows the types of investments in the underlying fund and the percentage of the overall portfolio they represent. Fund Target duration and credit quality 0-5 years 5-10 years 10 + years AAA and AA A and BBB below BBB Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Source: Lipper, a Thomson Reuters company Benchmark Investment objective Over the long term, the Fund is expected to outperform the FTSE TMX Universe Bond Index by 50 bps Top holdings Top holdings refers to the individual investments in the underlying fund that comprise the largest percentage of the overall portfolio. This is determined using the percentage weighting of the fund s net market value. 1. Fund code Each fund is named using a unique code. Identify a specific fund using its fund code when you select or change your investments. 2. Asset class The types of investments (such as Canadian Equity, International Equity, Fixed Income) that account for the majority of the fund s holdings. Funds are colour-coded by asset class. 6. Primary investment process Fund managers use a number of approaches to determine the asset allocation of a fund and to select the individual securities it will hold. Some typical approaches: Fundamental Bottom-up This approach considers the investment merits of individual companies. Quantitative This technique applies mathematical research and statistical models to identify attractive investments. Index An indexed portfolio is constructed to mimic the performance of a specific market index. This approach is also known as passive investing. 10

11 Multi-manager A multi-manager fund is directed by more than one investment manager and often combines different investment styles or asset classes. 7. Equity style and capitalization This chart displays the primary equity investment style (such as value or growth) the fund manager uses to select securities as well as the market capitalization of securities in the fund. Market capitalization is the total market value of a particular company s outstanding shares. In the context of an investment fund, this term refers to the size of the companies whose stocks are held in the fund. This term only applies to funds with equity or stock holdings. 8. Fixed income duration and quality This chart shows the fund manager s target duration (short = 0-5 years, medium = 5-10 years, long = 10+ years) as well as the credit quality of securities in the fund (high = AAA or AA, medium = A or BBB, low = BB or less). 9. Underlying fund Market-based investment options available to group plans usually invest in existing pooled or mutual funds these are known as the underlying funds. When a contribution is made to a Manulife fund, it s used to purchase units of the corresponding underlying fund. 10. Objective The fund s primary investment goal(s) as determined by the fund manager. 11. Managed by The investment management firm that oversees the fund. 12. Fund managers The lead fund manager(s) responsible for the investment decisions regarding the underlying fund. 13. Inception date The date the underlying fund was made available for purchase. 14. Manulife inception date The date the fund was first available for purchase by Manulife group retirement clients. 15. Total assets The total market value of all the assets invested in the underlying fund as of the specified date. 16. Underlying fund operating expenses Operating expenses are the costs of operating and maintaining a fund, and include items such as legal, audit, trustee, custodial, and fund valuation fees. Operating expenses are incurred by the Manulife fund and by the underlying fund (if applicable). 17. Overall past performance This graph shows how a $10,000 investment in the fund changed in value over a specified period, and the value of that investment at the end of the period. It also compares this value with the value of the same investment in a related, broadly-based index. 18. Annual returns The performance of the fund over various calendar years. This represents past performance and is not indicative of future results. Unit values fluctuate with the market value of the underlying fund s assets. Gross rates of return mean the investment performance of the fund before Investment Management Fees (IMFs) and applicable taxes are deducted. An individual who invests in the fund earns a net return after fees. IMFs vary by firm and by plan. Returns shown here represent results for the Manulife fund and/or its underlying fund. 19. Annualized compound returns Returns for a specified period of time expressed as an annualized rate. 20. Rate of return expectation The benchmark that the performance of the fund manager is measured against. 11

12 VOLATILITY METER GUARANTEED INTEREST ACCOUNTS Manulife Guaranteed Interest Accounts Volatility and risk These accounts offer good returns and excellent investment security. Consider these accounts if you are an investor who needs guaranteed security for your investment and can commit to investments for a fixed period of time. There is no volatility associated with the return in this account and there is minimal risk as this is a guaranteed investment backed by the general assets of Manulife Financial. HOW THESE ACCOUNTS WORK Similar to Guaranteed Investment Certificates (GICs) offered by banks and trust companies, these accounts guarantee an interest rate from the date of contribution until maturity. At maturity, original investments and interest earned will reinvest for the same term unless you provide Manulife with different instructions. When contributions are invested in these accounts, they earn the current interest rate at the time of the deposit. That interest is credited to the account monthly and is compounded annually. Each contribution made to a GIA accumulates for the term selected at the guaranteed rate in effect on the date Manulife s head office receives the contribution. The GIA operates on a compound interest basis which means the guaranteed interest rate applies to both principal and accumulated interest. The principal and interest are backed by the assets of Manulife Financial. HOW THE GUARANTEED INTEREST ACCOUNT IS PROTECTED Manulife Financial is a founding member of Assuris. With Assuris, consumers may be entitled to protection against the loss of their savings and retirement incomes if a member financial institution becomes insolvent. You can call Assuris at for details about maximum coverage guarantees. 12

13 Volatility meter Low Fund (4) Benchmark (4) Based on 3 year standard deviation High FIXED INCOME Code 4142 Manulife Pyramis Canadian Bond Fund Note: Effective February 1, 2016 the Manulife Fund name will change to Manulife FIAM Canadian Bond Fund How the underlying fund is invested UNDERLYING FUND -> Pyramis Canadian Bond Fund Composition Bond type Bond term Canadian Fixed Income 94.26% United States Fixed Income 3.61% Foreign Fixed Income 1.40% Cash & Equivalents 0.73% Corporate Notes/Bonds 54.86% Provincial/Municipal Bonds 29.23% Govt. Agency Notes/Bonds 9.25% MBS 4.01% ABS 1.92% Convertible Bond 0.10% Other 0.63% Less than 1 Year 1.24% 1 to 3 Years 12.88% 3 to 5 Years 21.34% 5 to 10 Years 31.40% 10 to 20 Years 6.94% 20 to 30 Years 19.56% Greater than 30 Years 5.49% Other 1.15% Objective The portfolio s investment objective is to generate returns that exceed the DEX Universe Bond Index (the Index ) by investing primarily in a well-diversified portfolio of Canadian dollardenominated debt securities. Managed by FIAM LLC Fund managers Brian Miron, Catriona Martin Inception date July 2002 Manulife inception date February 2014 Total assets $1,403.4 million Duration 7.98 Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees have been deducted. The shaded returns represent the underlying fund returns prior to the Manulife Fund s inception date. Manulife Pyramis Canadian Bond Fund - ($16,395) FTSE TMX Universe Bond Index CAD - ($16,333) FIAM Canadian Bond Trust Top holdings within the underlying fund (As at December 31, 2015) Ontario Province 2.850% 02-Jun % Can House No % 15-Jun % Ontario Province 4.200% 02-Jun % Ontario Province 3.500% 02-Jun % Can House No % 15-Dec % Can House No % 15-Dec % Canada 3.500% 01-Dec % Ontario Province 2.600% 02-Jun % Alberta Province 2.350% 01-Jun % Alberta Province 1.250% 01-Jun % 15,000 10,000 5,000 0 Annual returns YTD (%) Fund Benchmark Annualized compound returns (As at December 31, 2015) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. Since 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) inception (%) Fund Benchmark Target duration and credit quality 0-5 years 5-10 years 10 + years AAA and AA A and BBB Investment objective Over the long term, the Fund is expected to outperform the FTSE TMX Universe Bond Index by 50 bps. below BBB Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Source: Lipper, a Thomson Reuters company 13

14 Volatility meter Low Fund (5) Benchmark (6) Based on 3 year standard deviation High Balanced code 5132 Manulife MMF Monthly High Income Fund How the underlying fund is invested Composition Geographic split Canadian Equity 34.44% Canadian Fixed Income 22.82% United States Equity 19.23% Cash & Equivalents 15.11% United States Fixed Income 2.48% Foreign Fixed Income 1.39% Other 4.53% Canada 72.28% United States 21.76% Bermuda 3.63% United Kingdom 0.46% Australia 0.44% Jersey 0.35% Norway 0.03% Other 1.05% Top holdings within the underlying fund (As at December 31, 2015) Manulife Money Fund Series I (MFC) 5.58% Brookfield Property Partners LP 3.47% Loblaw Companies Ltd 3.13% Enbridge Inc 2.44% Kraft Heinz Co 2.18% Canada 0.000% 25-Aug % Empire Company Ltd 2.10% Brookfield Asset Management Inc 2.08% Mondelez International Inc 2.06% Fortis Inc 2.03% UNDERLYING FUND -> Manulife Monthly High Income Fund Objective The MMF Monthly High Income Fund seeks to provide investors with a steady flow of monthly income and capital growth through investments in Canadian fixed income and large cap securities. The Fund may also invest in units or royalty trusts and real estate investment trusts. Managed by Manulife Asset Management Limited Fund managers Alan Wicks, Conrad Dabiet, Jonathan Popper Inception date September 1997 Manulife inception date December 2004 Total assets $9,316.1 million Underlying fund operating expense (2014) in IMF Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees have been deducted. Manulife MMF Monthly High Income Fund - ($21,151) Blend: MMF Monthly High Income - ($16,144) 20,000 15,000 10,000 5,000 0 Primary investment process Fundamental, Bottom-up Equity style and capitalization Value Core/Blend Growth Large Medium Small All cap Target duration and credit quality 0-5 years 5-10 years 10 + years AAA and AA A and BBB Annual returns YTD (%) Fund Benchmark Annualized compound returns (As at December 31, 2015) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. Since 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) inception (%) Fund Benchmark Investment objective Over the long term, the Fund is expected to outperform a benchmark portfolio that is comprised of: 60% S&P/TSX Total Return Index 40% FTSE TMX Universe Bond Total Return Idx below BBB Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Operating expenses are the costs of operating and maintaining a fund, and include items such as legal, audit, trustee, custodial, and fund valuation fees. Operating expenses are incurred by the Segregated Fund and by the Underlying Fund (if applicable). Manulife s segregated fund operating expenses are included in the Investment Management Fees. Source: Lipper, a Thomson Reuters company 14

15 Volatility meter Low Fund (8) Benchmark (8) Based on 3 year standard deviation High CANADIAN LARGE CAP EQUITY Code 9034 C&MA Canadian Equity How the fund is invested Composition Canadian Equity 94.27% Cash & Equivalents 4.08% United States Equity 1.65% Objective The C&MA Canadian Equity Fund is managed for long-term capital growth by investing in securities of Canadian companies. The Fund is managed on an ethical basis so that there are no investments in companies in the following businesses: tobacco and gambling. Managed by Manulife Financial Fund managers Jim Hall, Scott Campbell, Vijay Viswanathan Inception date December 2006 Total assets $31.3 million Equity Industry Geographic split Financials 37.34% Industrials 15.95% Energy 10.46% Consumer Discretionary 8.31% Consumer Staples 6.46% Materials 6.44% Telecommunication Services 5.98% Other 9.06% Canada 98.32% United States 1.68% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees have been deducted. C&MA Canadian Equity - ($19,421) S&P/TSX Composite TR - ($13,294) Top holdings (As at December 31, 2015) Brookfield Asset Management Inc 5.41% CCL Industries Inc 5.01% Toronto-Dominion Bank 4.77% Canadian National Railway Co 4.50% Constellation Software Inc 4.42% Royal Bank of Canada 3.94% Loblaw Companies Ltd 3.71% Bank of Nova Scotia 3.46% Onex Corp 3.38% Manulife Financial Corp 3.13% 20,000 15,000 10,000 5,000 0 Annual returns YTD (%) Fund Benchmark Annualized compound returns (As at December 31, 2015) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. Since 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) inception (%) Fund Benchmark Investment objective Over the long term, the Fund attempts to outperform a benchmark portfolio that is comprised of the following: 100% S&P/TSX Composite Total Return Index Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Source: Lipper, a Thomson Reuters company 15

16 Volatility meter Low Fund (10) Benchmark (10) Based on 3 year standard deviation High GLOBAL EQUITY Code 9035 C&MA Foreign Equity How the fund is invested Composition United States Equity 55.05% Foreign Equity 41.33% Cash & Equivalents 3.62% Objective The C&MA Foreign Equity Fund is managed for long-term capital growth by investing in securities of Foreign companies. The Fund is managed on an ethical basis so that there are no investments in companies in the following businesses: tobacco and gambling. Managed by Manulife Financial Fund managers David Ragan, Grayson Witcher, Scott Campbell Inception date December 2006 Total assets $32.8 million Equity Industry Geographic split Financials 21.60% Information Technology 14.73% Health Care 12.85% Consumer Discretionary 12.72% Consumer Staples 11.48% Industrials 10.61% Materials 5.42% Other 10.59% United States 55.05% United Kingdom 12.88% Switzerland 5.22% Canada 3.62% Japan 3.45% Germany 3.28% Ireland 2.59% Other 13.91% Top holdings (As at December 31, 2015) Becton Dickinson and Co 2.35% JPMorgan Chase & Co 2.32% Wells Fargo & Co 2.19% BlackRock Inc 2.02% Marsh & McLennan Companies Inc 2.00% LKQ Corp 1.99% Alphabet Inc 1.94% Comcast Corp 1.82% Aon PLC 1.76% Intertek Group PLC 1.75% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees have been deducted. C&MA Foreign Equity - ($19,418) Blend: 50% MSCI EAFE/50% S&P ($17,438) 15,000 10,000 5,000 0 Annual returns YTD (%) Fund Benchmark Annualized compound returns (As at December 31, 2015) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. Since 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) inception (%) Fund Benchmark Investment objective Over the long term, the Fund attempts to outperform a benchmark portfolio that is comprised of the following: 50% MSCI EAFE Index ($ Cdn) 50% S&P 500 ($Cdn) Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Source: Lipper, a Thomson Reuters company 16

17 Notes 17

18 18 Notes

19

20 Group Retirement Solutions group retirement and savings products and services are offered through Manulife (The Manufacturers Life Insurance Company). Manulife and the block design are service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates under licence. INS4268 C&MA FSG (03/16) INS4268