QUARTERLY PERFORMANCE OF SSQ STRATEGY GIFs as at June 30, 2017

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1 QUARTERLY PERFORMANCE OF 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 MAIN BENCHMARKS In the second quarter, the FTSE TMX Canada Universe index posted a return of 1.11%. The yield to maturity of Canadian bonds rose, which had a negative impact on return. Nevertheless, the yield to maturity of longterm bonds dropped, which accounts for the index's positive return. The quarter was negative for the Canadian stock market (S&P/TSX) with a return of -1.64%. Energy, Financials and Materials are to blame, and are the three sectors most represented in the Canadian index. The global equity index (MSCI World) posted a quarterly return of 2.68% in local currency and 1.30% when converted into Canadian dollars. The U.S. equity index (S&P 500) posted a return of 3.09% in U.S. dollars and 0.39% in Canadian currency as the loony gained 2.69% in relation to the greenback. The European equity index (MSCI Europe) finished the quarter in positive territory with a return of 1.79% in local currency and 4.55% when converted into Canadian dollars. The equity index for the Pacific region (MSCI Pacific) posted a return of 4.37% in local currency and 1.19% when converted into Canadian dollars

2 QUARTERLY PERFORMANCE OF 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 0.72% 0.46% 0.45% 0.34% Benchmark 0.60% 0.34% -0.07% 0.10% Value added 0.12% 0.12% 0.52% 0.23% 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 essentially 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. Weigthed Returns The performance of fixed income fund managers was virtually identical to that of the index, the FTSE TMX Canada Universe. The Treasury Fund, managed by OGP, undermined the results with a nearly null absolute return. Canadian equities had difficulties in the market in the second quarter, posting negative returns. Overall, Canadian equity fund managers underperformed (-0.13%) in relation to the benchmark, the S&P/TSX. The Canadian Small Cap Equity Fund managed by Fiera Capital was hit the hardest as Canadian small cap equities fell into disfavour compared to large caps. Triasima's Canadian Equity Fund offset those results with a return that exceeded that of the benchmark. Foreign equity fund managers outperformed (0.26%) their index, the MSCI World. In a noteworthy showing, the International Equity Fund managed by C Worldwide turned in the best absolute performance (5.14%), making up for the results of Hexavest's All-Country Global Equity Fund, which posted a negative return of -0.01%. The latter's performance was due to defensive positioning, including an overweight in Telecommunications, and a strong weighting in cash and gold stocks

3 QUARTERLY PERFORMANCE OF 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. In the second quarter, the Fiera Capital Bond Fund added the most value (+0.26%) to the SSQ Balanced Strategy GIF, thanks to the long-term bond overweight of the Tactical Fixed Income Fund (33% of the Fiera Capital Bond Fund). This fine performance was also attributable to the overweight of bonds in the Financials and Infrastructure sectors. The Global Equity Fund managed by Fiera Capital was also a good contributor in its asset class, adding value of 0.23%. The manager bypassed the Energy sector's weak performance thanks to its Energy underweight; the manager also benefited from gains in the Health Care sector. The fund that generated the largest absolute return was the C Worldwide International Equity Fund, with a gain of 5.13%. This was attributable to judicious stock selection, particularly in Financials with the HDFC Bank and AIA Group. For the second quarter in a row, the biggest drag on performance was the Fiera Capital Canadian Small Cap Equity Fund. The Canadian Equity Fund managed by Montrusco Bolton also had a difficult quarter, primarily due to the lacklustre results of the Quantitative Canadian Equity Fund, which accounts for 20% of Montrusco Bolton's fund. GOVERNANCE PROCESS During the quarter, the SSQ Strategy GIFs outperformed their benchmark. 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

4 QUARTERLY PERFORMANCE OF SSQ STRATEGY GIFs ASSET ALLOCATION OF STRATEGY AND CELESTIA GIFs (%) UNTIL JUNE 26,

5 QUARTERLY PERFORMANCE OF SSQ STRATEGY GIFs ASSET ALLOCATION OF STRATEGY AND CELESTIA GIFs (%) SINCE JUNE 27, 2017 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

6 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 MAIN BENCHMARKS In the second quarter, the FTSE TMX Canada Universe index posted a return of 1.11 %. The yield to maturity of Canadian bonds rose, which had a negative impact on the return. Nevertheless, the yield to maturity of long-term bonds dropped, which accounts for the index's positive return. The quarter was negative for the Canadian stock market (S&P/TSX) with a return of -1.64%. Energy, Financials and Materials are to blame, and are the three sectors most represented in the Canadian index. The global equity index (MSCI World) posted a quarterly return of 2.68% in local currency and 1.30% when converted into Canadian dollars. The U.S. equity index (S&P 500) posted a return of 3.09% in U.S. dollars and 0.39% in Canadian currency as the loony gained 2.69% in relation to the greenback. The European equity index (MSCI Europe) finished the quarter in positive territory with a return of 1.79% in local currency and 4.55% when converted into Canadian dollars. The equity index for the Pacific region (MSCI Pacific) posted a return of 4.37% in local currency and 1.19% when converted into Canadian dollars

7 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 0.81% 0.72% 0.55% 0.35% Benchmark 0.61% 0.36% 0.17% -0.02% Value added 0.20% 0.37% 0.38% 0.37% 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 essentially 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. Weighted Returns The fixed income fund managers outperformed (0.12%) the benchmark, the FTSE TMX Canada Universe. The Celestia GIF bond funds all posted positive returns in the second quarter. As was the case in the first quarter, PIMCO's Monthly Income Fund turned in the group's best relative performance in relation to the FTSE TMX Canada Universe. The Canadian equity fund managers outperformed (0.11%) their index, the S&P/TSX. In terms of absolute returns, the top-performing fund was the Canadian Equity Dividend Fund managed by Guardian (-0.68%), which represents an improvement on the first quarter, when it came in last place. This time around, Jarislowsky Fraser Ltd. and its Canadian Value Equity Fund brought up the rear. The foreign equity fund managers outperformed (0.14%) their benchmark, the MSCI World. The top performer was the specialized Global Infrastructure Fund managed by Lazard, whose quarterly return offset the underperforming Global Equity Fund managed by Hexavest, which lagged its index due to its defensive positioning. In effect, the manager underweighted the cyclical sectors (Financials, Information Technology and Industrials) and had strong cash and gold stock weightings

8 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. In the second quarter, the top-performing manager was Lazard and its Global Infrastructure Fund, with an absolute performance of 5.57%. One of the reasons behind their great performance is their holdings in the Spanish company Abertis. In fact, an offer to purchase all of their shares was recently launched by the Italian company Atlantia with the intention of potentially creating the world s biggest toll-road operator. The Monthly Income Fund managed by PIMCO was one of the major contributors to the SSQ Celestia Balanced GIF's performance, in particular thanks to security selection in the portfolio's highest-quality portion and in high-yield bonds. The International Equity Fund managed by C Worldwide continued to turn in a strong performance, with an absolute return of 5.13% during the quarter. This fund outperformed due to judicious security selection, particularly in the Financials sector with HDFC Bank and AIA Group. In general, the Canadian Equity Fund managers posted negative returns in both absolute and relative terms. The main detractor was the Canadian Value Equity Fund managed by Jarislowsky Fraser Ltd., due to holdings of Cenovus Energy Inc., which lost 36% of its value in the second quarter following transactions aimed at focusing on tar sands operations. This poor performance was also caused by the weighting of the Canadian Value Equity Fund in the JF Special Equity Fund, which is made up of small and mid-cap stocks, as Canadian small caps were outperformed by large caps. GOVERNANCE PROCESS During the quarter, the SSQ Celestia GIFs outperformed their benchmark. 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. This fund was added to the SSQ Celestia GIF at the end of the second quarter. Thanks to constant monitoring of our fund managers, we can confirm that we still have confidence in our managers' ability to add value and we remain proactive with respect to asset allocation

9 QUARTERLY PERFORMANCE OF SSQ CELESTIA GIFs ASSET ALLOCATION OF STRATEGY AND CELESTIA GIFs (%) UNTIL JUNE 26,

10 QUARTERLY PERFORMANCE OF SSQ CELESTIA GIFs ASSET ALLOCATION OF STRATEGY AND CELESTIA GIFs (%) SINCE JUNE 27, 2017 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