Great-West Life investment funds information folder notice

Transcription

1 Great-West Life investment funds information folder notice Updates to existing segregated funds will occur in November This document outlines what the changes will be. Global Income (Sentry) Fund Facts [formerly Growth & Income (AGF)] Global Low Volatility (ILIM) Fund Facts [formerly North American Opportunity (Mackenzie)] The Great-West Life Assurance Company 1 Notice to B /16 08/16

2 In November 2016 two segregated funds will be renamed, as shown in the table, and their investment objectives updated. The funds will change from a Canadian or North American focus to a global focus. The information folder will be amended at that time to replace the name of the existing segregated fund with the fund s new name wherever each appears. See the Notes section on each of the attached Fund Facts for details on the changes made to the Fund Facts. Existing segregated fund name Growth & Income (AGF) North American Opportunity (Mackenzie) New segregated fund name Global Income (Sentry) Global Low Volatility (ILIM) If you allocate premiums to these funds before these changes take place you waive your rights under the fundamental change provision of your policy. The information folder contains important provisions that you should read prior to investing. The information folder contains general information about your policy and includes a summary of the various types of risks that may apply when you invest in a segregated fund. This notice is not an insurance contract. The Great-West Life Assurance Company is the sole issuer of the individual variable annuity policy described in the information folder. You may contact us at: The Great-West Life Assurance Company 255 Dufferin Avenue London, ON N6A 4K1 Web: On our website please go to the Contact Us section Telephone: Great-West Life and the key design are trademarks of The Great-West Life Assurance Company. 2 Notice to B /16 08/16

3 Global Income (Sentry) Quick facts: Date fund available: January 23, 1996 Date fund created: January 23, 1996 Managed by: Sentry Investments Total fund value: $25,299,380 Portfolio turnover rate: % Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 75% death benefit guarantee - Back-end load units ,305 75% maturity and 75% death benefit guarantee - No-load units ,997 Minimum investment Non-registered and RRSP policies: $300 lump sum or pre-authorized chequing (PAC) of $50 RRIF policies: Existing Great-West Life client $10,000; New Great-West Life client $20,000 What does the fund invest in? This segregated fund invests primarily in fixed income securities and stocks anywhere in the world. Top 10 investments Asset % Royal Bank of Canada Toronto-Dominion Bank Canadian National Railway Co Canada 5.000% 01-Jun Ontario Province 2.850% 02-Jun CAD Cash Bank of Nova Scotia Can House No % 15-Dec Ontario Province 5.600% 02-Jun Manulife Financial Corp Total Total investments: Investment segmentation Asset % Bond Canadian Equity United States Equity International Equity Cash Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner who chooses the 75/75 guarantee option (back-end load units). Returns are after the MER has been deducted. It s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on the guarantee option you choose and on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2005 and chose the 75/75 guarantee option (back-end load units) now has $1, on December 31, This works out to an average of 3.57 per cent a year. Year-by-year returns(%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner who chose the 75/75 guarantee option (back-end load units). In the past 10 years, the fund was up in value 7 years and down in value 3 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the medium to longer term and seeking exposure to Canadian and foreign bonds and stocks and is comfortable with low to moderate risk. Since the fund invests in stocks and bonds its value is affected by changes in interest rates and by stock prices, which can rise and fall in a short period of time. Notes Effective November 2016 Sentry Investments Inc. assumed portfolio management responsibilities for the Growth & Income Fund (AGF). The name of the fund changed to Global Income Fund (Sentry) from Growth & Income Fund (AGF). The investment objective of the segregated fund changed from investing primarily in Canadian fixed income securities and stocks to investing primarily in fixed income securities and stocks anywhere in the world. The performance before that date was achieved under the previous manager and investment objective.

4 Global Income (Sentry) How much does it cost? One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works Back-end load units No-load units If you redeem units within: 1 year of investing, you pay 4.50% 2 years of investing, you pay 4.25% 3 years of investing, you pay 3.90% 4 years of investing, you pay 3.50% 5 years of investing, you pay 3.00% 6 years of investing, you pay 2.35% 7 years of investing, you pay 1.50% After 7 years, you pay 0.0% There is no fee to invest or redeem units. When you invest, Great-West Life pays a commission of up to 5%. Any early redemption fee you pay goes to Great-West Life. You can redeem up to 10% (20% for RRIF type policies) of your units each year without paying an early redemption. The early redemption fee is a set rate. It is deducted from the amount you withdraw. You can exchange to units of other funds under the contract at any time without paying an early redemption fee. The early redemption fee schedule is based on the date you invested the premium. You can redeem units without paying an early redemption fee. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund s value) 75% maturity and 75% death benefit guarantee - Back-end load units % maturity and 75% death benefit guarantee - No-load units Trailing commission Great-West Life pays a trailing commission for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. The rate depends on the sales charge option you choose: Back-end load units - up to 0.50 per cent of the value of your investment each year No-load units - up to one per cent of the value of your investment each year 3. Other fees: You may have to pay other fees when you redeem or switch units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or switch within 90 days of investing in the fund. What if I change my mind? You can change your mind about investing in this fund but you may have as little as two days to do so. Please see page 29 for details. The page also contains details on how to get more information. This Fund Facts is not complete without page All Rights Reserved. Source: Lipper, a Thomson Reuters company

5 Global Low Volatility (ILIM) Quick facts: Date fund available: November 25, 1997 Date fund created: November 25, 1997 Managed by: Irish Life Investment Managers Limited Total fund value: $18,392,676 Portfolio turnover rate: 28.73% Management expense ratio (MER) (%) Net asset value per unit ($) Units outstanding 75% maturity and 75% death benefit guarantee - Back-end load units ,179 75% maturity and 75% death benefit guarantee - No-load units ,360 Minimum investment Non-registered and RRSP policies: $300 lump sum or pre-authorized chequing (PAC) of $50 RRIF policies: Existing Great-West Life client $10,000; New Great-West Life client $20,000 What does the fund invest in? This segregated fund invests primarily in stock of companies anywhere in the world with a focus on those companies and/ or sectors that are believed to likely have lower sensitivity to broader market movements. Top 10 investments Asset % Celgene Corp Chubb Ltd NXP Semiconductors NV Walt Disney Co PNC Financial Services Group Inc Skyworks Solutions Inc Johnson & Johnson Visa Inc Alphabet Inc Apple Inc Total Total investments:...72 Investment segmentation Asset % United States Equity Canadian Equity International Equity Cash Are there any guarantees? This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your investment if the markets go down. The MER includes the insurance cost for the guarantee. For details, please refer to the information folder and contract. How has the fund performed? This section tells you how the fund has performed over the past 10 years for a policyowner who chooses the 75/75 guarantee option (back-end load units). Returns are after the MER has been deducted. It s important to note that this does not tell you how the fund will perform in the future. Also, your actual return will depend on the guarantee option you choose and on your personal tax situation. Average return A person who invested $1,000 in the fund on December 31, 2005 and chose the 75/75 guarantee option (back-end load units) now has $2, on December 31, This works out to an average of 7.99 per cent a year. Year-by-year returns(%) This chart shows how the fund would have performed in each of the past 10 years for a policyowner who chose the 75/75 guarantee option (back-end load units). In the past 10 years, the fund was up in value 8 years and down in value 2 years of the How risky is it? Very low Low Low to moderate to high High The value of your investments can go down. Please see the Fund risks section of the information folder for further details. Who is this fund for? A person who is investing for the longer term, seeking the growth potential of global stocks and is comfortable with moderate risk. Since the fund invests in stocks its value is affected by stock prices, which can rise and fall in a short period of time. Notes Effective November 2016 Irish Life Investment Management Limited assumed portfolio management responsibilities for the North American Opportunity Fund (Mackenzie). The name of the fund changed to Global Low Volatility (ILIM) from North American Opportunity Fund (Mackenzie). The investment objective of the segregated fund changed from investing primarily in stocks of North American companies to investing primarily in stocks of companies anywhere in the world. The performance before that date was achieved under the previous manager and investment objective.

6 Global Low Volatility (ILIM) How much does it cost? One of the following sales charge options will apply. For details, refer to the Fees and expenses section of the information folder and discuss with your financial security advisor. 1. Sales charges: Sales charge option What you pay How it works Back-end load units No-load units If you redeem units within: 1 year of investing, you pay 4.50% 2 years of investing, you pay 4.25% 3 years of investing, you pay 3.90% 4 years of investing, you pay 3.50% 5 years of investing, you pay 3.00% 6 years of investing, you pay 2.35% 7 years of investing, you pay 1.50% After 7 years, you pay 0.0% There is no fee to invest or redeem units. When you invest, Great-West Life pays a commission of up to 5%. Any early redemption fee you pay goes to Great-West Life. You can redeem up to 10% (20% for RRIF type policies) of your units each year without paying an early redemption. The early redemption fee is a set rate. It is deducted from the amount you withdraw. You can exchange to units of other funds under the contract at any time without paying an early redemption fee. The early redemption fee schedule is based on the date you invested the premium. You can redeem units without paying an early redemption fee. You can exchange to units of other funds under the contract at any time. 2. Ongoing expenses: The MER includes the management fee and operating expenses of the fund. The MER includes the insurance cost for the guarantee. You do not pay these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract. MER (Annual rate as a % of the fund s value) 75% maturity and 75% death benefit guarantee - Back-end load units % maturity and 75% death benefit guarantee - No-load units Trailing commission Great-West Life pays a trailing commission for the services and advice provided to you. The trailing commission is paid out of the management fee for as long as you hold the fund. The rate depends on the sales charge option you choose: Back-end load units - up to 0.50 per cent of the value of your investment each year No-load units - up to one per cent of the value of your investment each year 3. Other fees: You may have to pay other fees when you redeem or switch units of the fund. Fee Short-term trading fee What you pay Up to 2% of the value of units you redeem or switch within 90 days of investing in the fund. What if I change my mind? You can change your mind about investing in this fund but you may have as little as two days to do so. Please see page 29 for details. The page also contains details on how to get more information. This Fund Facts is not complete without page All Rights Reserved. Source: Lipper, a Thomson Reuters company