Financial Statements of THE GREAT-WEST LIFE ASSURANCE COMPANY IG/GWL INVESTMENT FUNDS

Transcription

1 Financial Statements of THE GREATWEST LIFE ASSURANCE COMPANY IG/GWL INVESTMENT FUNDS December 31, 2015

2 Deloitte LLP 360 Main Street Suite 2300 Winnipeg MB R3C 3Z3 Canada INDEPENDENT AUDITOR S REPORT Tel: Fax: To the Contractholders of The GreatWest Life Assurance Company IG/GWL Investment Funds We have audited the accompanying financial statements of The GreatWest Life Assurance Company IG/GWL Investment Funds as listed in Note 1 to the financial statements, which comprise the statements of financial position as at December 31, 2015 and December 31, 2014, the statements of comprehensive income, statements of changes in net assets attributable to contractholders and the statements of cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of Part XII of the Canadian Life and Health Insurance Association Guideline G2, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of The GreatWest Life Assurance Company IG/GWL Investment Funds as listed in Note 1 to the financial statements, as at December 31, 2015 and December 31, 2014, and the results of operations and cash flows for the years then ended in accordance with International Financial Reporting Standards and the requirements of Part XII of the Canadian Life and Health Insurance Association Guideline G2. Chartered Accountants Winnipeg, Manitoba March 18, 2016

3 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands) Statement of Financial Position Assets Cash and shortterm deposits Statement of Comprehensive Income December 31 December 31 For the years ended December 31 December Income Net gain (loss) on investments Investment income due and accrued Investment properties income Due from The GreatWest Life Assurance Company (note 8) Due from brokers Due from outside parties Investments Bonds Stocks Investment fund units (note 3) 690 Investment properties Mortgages and sales agreements Derivatives Total investments Due to The GreatWest Life Assurance Company (note 8) Due to brokers Due to outside parties Total liabilities excluding net assets attributable to contractholders 960 Total assets Liabilities Overdrafts Mortgages on investment properties Derivatives Net assets attributable to contractholders Expenses Miscellaneous income (loss) Total Income Management fees (note 8) 6 Investment properties expenses Transaction costs Withholding taxes Other Total expenses 6 8 Net increase (decrease) in net assets from operations attributable to contractholders Statement of Changes in Net Assets Attributable to Contractholders For the years ended Net assets attributable to contractholders beginning of year Contractholder deposits 1 1 Contractholder withdrawals (282) (158) Increase (decrease) from operations Change in net assets attributable to contractholders Net assets attributable to contractholders end of year December 31 December , (270) (84)

4 (in Canadian $ thousands) IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund Statement of Cash Flows Net Inflow (Outflow) of Cash Related to the Following Activities Operating Activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments Realized (gains) losses (24) (22) Unrealized (gains) losses Gross proceeds of disposition of investments Gross payments for the purchase of investments (1) Change in distribution income of underlying mutual fund (33) (87) Change in investment income due and accrued Change in due from/to The GreatWest Life Assurance Company Change in due from/to brokers Change in due from/to outside parties Change in mortgages on investment properties Financing Activities Contractholder deposits 1 1 Contractholder withdrawals (282) (158) (281) (157) Net increase (decrease) in cash, shortterm deposits and overdrafts Cash, shortterm deposits and overdrafts, beginning of year Cash, shortterm deposits and overdrafts, end of year

5 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except per unit amounts) The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Net Assets Attributable to Contractholders Per Unit (note 7) Number of units outstanding Investment Only Net asset value per unit Individual NoLoad (IA) Individual BackEnd Load (IB) Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy 57,567 80,718 94, , , PS2 75/100 guarantee policy PS2 100/100 guarantee policy Net Assets Attributable to Contractholders by Category Net asset value Investment Only Increase (decrease) per unit Individual NoLoad (IA) Individual BackEnd Load (IB) ,044 1,078 1, Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy PS2 75/100 guarantee policy PS2 100/100 guarantee policy

6 IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Investment Fund Units No. of Average Fair Units Cost Value Allegro Aggressive Canada Focus Portfolio Fund Series S* 73, Total Investments Top 5 Holdings of the underlying funds Underlying fund: Investors Canadian Large Cap Value Fund Royal Bank of Canada 9.64% The Bank of Nova Scotia 8.55% The TorontoDominion Bank 7.58% TransCanada Corp. 5.35% Canadian Imperial Bank of Commerce 5.26% Underlying fund: Investors Canadian Small Cap Fund Cash and shortterm deposits 3.86% Algonquin Power & Utilities Corp. 2.97% StellaJones Inc. 2.82% Quebecor Inc. Class B SV 2.80% Chartwell Retirement Residences 2.59% Underlying fund: IG Mackenzie Canadian Equity Growth Fund The Bank of Nova Scotia 3.76% Royal Bank of Canada 3.31% Temp Holdings Co. Ltd. 3.23% Manulife Financial Corp. 3.13% Alimentation CoucheTard Inc. Class B SV 2.95% *The issuer of this security is a related company to the issuer of the fund.

7 IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG AGF Global Equity Fund ACE Ltd. 3.93% Moody s Corp. 3.87% Honeywell International Inc. 3.74% Philip Morris International Inc. 3.65% Altria Group Inc. 3.28% Underlying fund: Investors U.S. Large Cap Value Fund Berkshire Hathaway Inc. Class A 3.88% Wells Fargo & Co. 3.50% JPMorgan Chase & Co. 3.25% CSX Corp. 3.21% Exxon Mobil Corp. 3.16% Underlying fund: IG Putnam U.S. Growth Fund Amazon.com Inc. 4.38% Alphabet Inc. Class C 4.05% Facebook Inc. 3.85% Apple Inc. 3.75% Visa Inc. Class A 3.70% Underlying fund: Investors European Equity Fund British American Tobacco PLC 3.69% Cash and shortterm deposits 3.69% Sampo OYJ A 3.43% Roche Holding AG Genusscheine 3.31% Fresenius SE & Co. KGaA 3.19%

8 IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors European MidCap Equity Fund Next PLC 3.61% Baloise Holding AG 3.49% DCC PLC 3.35% Fresenius SE & Co. KGaA 3.00% Persimmon PLC 2.65% Underlying fund: Investors Pan Asian Equity Fund Toyota Motor Corp. 4.62% Cash and shortterm deposits 3.36% Samsung Electronics Co. Ltd. 2.20% SoftBank Group Corp. 1.92% Sumitomo Mitsui Financial Group Inc. 1.92% Underlying fund: IG Beutel Goodman Canadian Equity Fund The TorontoDominion Bank 7.66% Royal Bank of Canada 7.60% Rogers Communications Inc. Class B NV 6.13% The Bank of Nova Scotia 4.82% Cenovus Energy Inc. 3.83% Underlying fund: IG FI Canadian Equity Fund The TorontoDominion Bank 8.99% Royal Bank of Canada 8.92% Suncor Energy Inc. 4.94% Canadian Pacific Railway Ltd. 4.07% Enbridge Inc. 3.58%

9 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Aggressive Canada Focus Portfolio Segregated Fund The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Management Expense Ratio (1) (unaudited) No Load BackEnd Load Managed Money 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy (2) Portfolio Turnover Rate (unaudited) Portfolio Turnover Rate (%) (1) (2) The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily net asset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only. No management expense ratio is calculated for the Preferred Series 2 guarantee policy option as such fees are charged directly to the contractholder. The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual Variable Insurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout the year. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year.

10 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Aggressive Portfolio Segregated Fund (in Canadian $ thousands) Statement of Financial Position Assets Cash and shortterm deposits Statement of Comprehensive Income December 31 December 31 For the years ended December 31 December Income Net gain (loss) on investments Investment income due and accrued Investment properties income Due from The GreatWest Life Assurance Company (note 8) Due from brokers 1 1 Due from outside parties Investments Bonds Stocks Investment fund units (note 3) 3,703 Investment properties Mortgages and sales agreements Derivatives Due to The GreatWest Life Assurance Company (note 8) Due to brokers 4,066 Total investments 3,703 4,066 Due to outside parties Total liabilities excluding net assets attributable to contractholders Total assets 3,704 4,067 Liabilities Overdrafts 1 Mortgages on investment properties Derivatives 1 Net assets attributable to contractholders 3,704 4,066 Expenses Miscellaneous income (loss) Total Income Management fees (note 8) 29 Investment properties expenses Transaction costs Withholding taxes Other 3 Total expenses Net increase (decrease) in net assets from operations attributable to contractholders Statement of Changes in Net Assets Attributable to Contractholders For the years ended Net assets attributable to contractholders beginning of year Contractholder deposits Contractholder withdrawals (886) (828) Increase (decrease) from operations Change in net assets attributable to contractholders Net assets attributable to contractholders end of year 4, December 31 December , (362) (433) 3,704 4,066

11 (in Canadian $ thousands) IG/GWL Allegro Aggressive Portfolio Segregated Fund Statement of Cash Flows Net Inflow (Outflow) of Cash Related to the Following Activities Operating Activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments Realized (gains) losses (179) (145) Unrealized (gains) losses (4) 104 Gross proceeds of disposition of investments Gross payments for the purchase of investments (240) (19) Change in distribution income of underlying mutual fund (129) (351) Change in investment income due and accrued Change in due from/to The GreatWest Life Assurance Company (1) Change in due from/to brokers Change in due from/to outside parties Change in mortgages on investment properties Financing Activities Contractholder deposits Contractholder withdrawals (886) (828) (642) (792) Net increase (decrease) in cash, shortterm deposits and overdrafts 1 Cash, shortterm deposits and overdrafts, beginning of year (1) (1) Cash, shortterm deposits and overdrafts, end of year (1)

12 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Aggressive Portfolio Segregated Fund (in Canadian $ thousands, except per unit amounts) The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Net Assets Attributable to Contractholders Per Unit (note 7) Number of units outstanding Investment Only Net asset value per unit Individual NoLoad (IA) Individual BackEnd Load (IB) Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy 270, , , , , PS2 75/100 guarantee policy PS2 100/100 guarantee policy Net Assets Attributable to Contractholders by Category Net asset value Investment Only Increase (decrease) per unit Individual NoLoad (IA) Individual BackEnd Load (IB) 3,703 4,066 4,499 4,565 4, Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy PS2 75/100 guarantee policy PS2 100/100 guarantee policy

13 (in Canadian $ thousands, except number of units) IG/GWL Allegro Aggressive Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 No. of Average Fair Units Cost Value Investment Fund Units Allegro Aggressive Fund Series S* 333,233 3,135 3,703 Total Investments 3,135 3,703 Top 5 Holdings of the underlying funds Underlying fund: Investors Canadian Large Cap Value Fund Royal Bank of Canada 9.64% The Bank of Nova Scotia 8.55% The TorontoDominion Bank 7.58% TransCanada Corp. 5.35% Canadian Imperial Bank of Commerce 5.26% Underlying fund: Investors Canadian Small Cap Fund Cash and shortterm deposits 3.86% Algonquin Power & Utilities Corp. 2.97% StellaJones Inc. 2.82% Quebecor Inc. Class B SV 2.80% Chartwell Retirement Residences 2.59% Underlying fund: Investors U.S. Large Cap Value Fund Berkshire Hathaway Inc. Class A 3.88% Wells Fargo & Co. 3.50% JPMorgan Chase & Co. 3.25% CSX Corp. 3.21% Exxon Mobil Corp. 3.16% *The issuer of this security is a related company to the issuer of the fund.

14 (in Canadian $ thousands, except number of units) IG/GWL Allegro Aggressive Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors Pan Asian Equity Fund Toyota Motor Corp. 4.62% Cash and shortterm deposits 3.36% Samsung Electronics Co. Ltd. 2.20% SoftBank Group Corp. 1.92% Sumitomo Mitsui Financial Group Inc. 1.92% Underlying fund: Investors U.S. Opportunities fund Cash and shortterm deposits 3.39% Lear Corp. 3.25% Dollar General Corp. 2.89% Huntington Bancshares Inc. 2.88% WEC Energy Group Inc. 2.86% Underlying fund: Investors European Equity Fund British American Tobacco PLC 3.69% Cash and shortterm deposits 3.69% Sampo OYJ A 3.43% Roche Holding AG Genusscheine 3.31% Fresenius SE & Co. KGaA 3.19% Underlying fund: IG AGF U.S. Growth Fund Facebook Inc. 5.17% Amazon.com Inc. 4.94% The Boeing Co. 4.00% Red Hat Inc. 3.97% Salesforce.com Inc. 3.90%

15 (in Canadian $ thousands, except number of units) IG/GWL Allegro Aggressive Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG Mackenzie Emerging Markets Class HDFC Bank Ltd. ADR 4.73% Taiwan Semiconductor Manufacturing Co. Ltd. ADR 4.70% AIA Group Ltd. 4.33% Housing Development Finance Corp. Ltd. 3.71% Tencent Holdings Ltd. 3.30% Underlying fund: IG Mackenzie Ivy Foreign Equity Class Cash and shortterm deposits 28.93% Omnicom Group Inc. 4.14% The Procter & Gamble Co. 3.50% Admiral Group PLC 3.40% Danone SA 3.37% Underlying fund: IG Beutel Goodman Canadian Equity Fund The TorontoDominion Bank 7.66% Royal Bank of Canada 7.60% Rogers Communications Inc. Class B NV 6.13% The Bank of Nova Scotia 4.82% Cenovus Energy Inc. 3.83% Underlying fund: IG FI Canadian Equity Fund The TorontoDominion Bank 8.99% Royal Bank of Canada 8.92% Suncor Energy Inc. 4.94% Canadian Pacific Railway Ltd. 4.07% Enbridge Inc. 3.58%

16 (in Canadian $ thousands, except number of units) IG/GWL Allegro Aggressive Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG Putnam U.S. Growth Fund Amazon.com Inc. 4.38% Alphabet Inc. Class C 4.05% Facebook Inc. 3.85% Apple Inc. 3.75% Visa Inc. Class A 3.70%

17 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Aggressive Portfolio Segregated Fund The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Management Expense Ratio (1) (unaudited) No Load BackEnd Load Managed Money 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy (2) Portfolio Turnover Rate (unaudited) Portfolio Turnover Rate (%) (1) (2) The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily net asset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only. No management expense ratio is calculated for the Preferred Series 2 guarantee policy option as such fees are charged directly to the contractholder. The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual Variable Insurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout the year. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year.

18 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Conservative Portfolio Segregated Fund (in Canadian $ thousands) Statement of Financial Position Assets Cash and shortterm deposits Statement of Comprehensive Income December 31 December 31 For the years ended December 31 December Income Net gain (loss) on investments Investment income due and accrued Investment properties income Due from The GreatWest Life Assurance Company (note 8) Due from brokers 4 7 Due from outside parties Investments Bonds Stocks Investment fund units (note 3) 13,263 Investment properties Mortgages and sales agreements Derivatives Due to The GreatWest Life Assurance Company (note 8) 2 Due to brokers 14,458 Total investments 13,263 14,458 Due to outside parties Total liabilities excluding net assets attributable to contractholders Total assets 13,267 14,465 Liabilities Overdrafts 4 48 Mortgages on investment properties Derivatives Net assets attributable to contractholders 13,261 14,415 Expenses Miscellaneous income (loss) Total Income Management fees (note 8) 65 Investment properties expenses Transaction costs Withholding taxes Other 6 Total expenses Net increase (decrease) in net assets from operations attributable to contractholders Statement of Changes in Net Assets Attributable to Contractholders For the years ended Net assets attributable to contractholders beginning of year Contractholder deposits 929 2,296 Contractholder withdrawals (2,689) (3,227) Increase (decrease) from operations Change in net assets attributable to contractholders Net assets attributable to contractholders end of year 14, December 31 December , (1,154) (273) 13,261 14,415

19 (in Canadian $ thousands) IG/GWL Allegro Conservative Portfolio Segregated Fund Statement of Cash Flows Net Inflow (Outflow) of Cash Related to the Following Activities Operating Activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments Realized (gains) losses (280) (285) Unrealized (gains) losses 22 (11) Gross proceeds of disposition of investments 2,592 3,199 Gross payments for the purchase of investments (721) (2,307) Change in distribution income of underlying mutual fund (418) (394) Change in investment income due and accrued Change in due from/to The GreatWest Life Assurance Company 31 Change in due from/to brokers 3 Change in due from/to outside parties Change in mortgages on investment properties 1, Financing Activities Contractholder deposits 929 2,296 Contractholder withdrawals (2,689) (3,227) (1,760) (931) Net increase (decrease) in cash, shortterm deposits and overdrafts 44 (40) Cash, shortterm deposits and overdrafts, beginning of year (48) (8) Cash, shortterm deposits and overdrafts, end of year (4) (48)

20 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Conservative Portfolio Segregated Fund (in Canadian $ thousands, except per unit amounts) The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Net Assets Attributable to Contractholders Per Unit (note 7) Number of units outstanding Investment Only Net asset value per unit Individual NoLoad (IA) Individual BackEnd Load (IB) Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy 1,028,698 1,165,317 1,241,750 1,315,924 1,348, PS2 75/100 guarantee policy PS2 100/100 guarantee policy Net Assets Attributable to Contractholders by Category Net asset value Investment Only Increase (decrease) per unit Individual NoLoad (IA) Individual BackEnd Load (IB) 13,261 14,415 14,688 14,713 14, Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy PS2 75/100 guarantee policy PS2 100/100 guarantee policy

21 (in Canadian $ thousands, except number of units) IG/GWL Allegro Conservative Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 No. of Average Fair Units Cost Value Investment Fund Units Allegro Conservative Fund Series S* 1,203,103 12,204 13,263 Total Investments 12,204 13,263 Top 5 Holdings of the underlying funds Underlying fund: Investors Canadian Corporate Bond Fund Royal Bank of Canada 2.77% % Cash and shortterm deposits 2.12% The TorontoDominion Bank 2.62% % Canadian Imperial Bank of Commerce 2.22% % Canadian Imperial Bank of Commerce 2.35% % Underlying fund: Investors Mortgage and Short Term Income Fund Cash and shortterm deposits 4.27% Canada Housing Trust No % % Royal Bank of Canada 2.77% % Canada Housing Trust No % % Province of Ontario 4.40% % Underlying fund: Investors Canadian Bond Fund Government of Canada 5.00% % Government of Canada 4.00% % Province of Ontario 4.65% % Bank of Montreal 3.21% % Canada Housing Trust No % % *The issuer of this security is a related company to the issuer of the fund.

22 (in Canadian $ thousands, except number of units) IG/GWL Allegro Conservative Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors Global Bond Fund Cash and shortterm deposits 17.44% United States Treasury 3.63% % United States Treasury 2.00% % United States Treasury 2.38% % Government of Australia 3.25% % Underlying fund: IG Mackenzie Canadian Equity Growth Fund The Bank of Nova Scotia 3.76% Royal Bank of Canada 3.31% Temp Holdings Co. Ltd. 3.23% Manulife Financial Corp. 3.13% Alimentation CoucheTard Inc. Class B SV 2.95% Underlying fund: IG AGF U.S. Growth Fund Facebook Inc. 5.17% Amazon.com Inc. 4.94% The Boeing Co. 4.00% Red Hat Inc. 3.97% Salesforce.com Inc. 3.90% Underlying fund: IG Mackenzie Ivy European Fund Cash and shortterm deposits 32.80% Publicis Groupe 8.59% Aggreko PLC 6.95% Admiral Group PLC 6.09% Danone SA 5.96%

23 (in Canadian $ thousands, except number of units) IG/GWL Allegro Conservative Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors Pan Asian Equity Fund Toyota Motor Corp. 4.62% Cash and shortterm deposits 3.36% Samsung Electronics Co. Ltd. 2.20% SoftBank Group Corp. 1.92% Sumitomo Mitsui Financial Group Inc. 1.92% Underlying fund: Investors Real Property Fund Cash and shortterm deposits 16.58% 1 Toronto Street (Toronto, Ontario) 2.90% Plains Midstream Plaza (Calgary, Alberta) 2.49% 5000 Yonge Street (Toronto, Ontario) 2.42% Bell Canada Building (Calgary, Alberta) 2.20% Underlying fund: IG Mackenzie Income Fund Province of Ontario 3.45% % Province of Quebec 4.50% % Province of Ontario 2.60% % Province of Quebec 2.75% % Province of Ontario 4.20% % Underlying fund: IG AGF Global Equity Fund ACE Ltd. 3.93% Moody s Corp. 3.87% Honeywell International Inc. 3.74% Philip Morris International Inc. 3.65% Altria Group Inc. 3.28%

24 (in Canadian $ thousands, except number of units) IG/GWL Allegro Conservative Portfolio Segregated Fund Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG Putnam U.S. High Yield Income Fund Cash and shortterm deposits 7.25% Sprint Corp. 7.88% % HCA Inc. 6.50% % ADS Waste Holdings Inc. 8.25% % Caesars Entertainment Operating Co. Inc. Floating Rate %

25 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Conservative Portfolio Segregated Fund The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Management Expense Ratio (1) (unaudited) No Load BackEnd Load Managed Money 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy (2) Portfolio Turnover Rate (unaudited) Portfolio Turnover Rate (%) (1) (2) The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily net asset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only. No management expense ratio is calculated for the Preferred Series 2 guarantee policy option as such fees are charged directly to the contractholder. The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual Variable Insurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout the year. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year.

26 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands) Statement of Financial Position Assets Cash and shortterm deposits Statement of Comprehensive Income December 31 December 31 For the years ended December 31 December Income Net gain (loss) on investments Investment income due and accrued Investment properties income Due from The GreatWest Life Assurance Company (note 8) Due from brokers Due from outside parties Investments Bonds Stocks Investment fund units (note 3) 2,101 Investment properties Mortgages and sales agreements Derivatives Due to The GreatWest Life Assurance Company (note 8) Due to brokers 2,322 Total investments 2,101 2,322 Due to outside parties Total liabilities excluding net assets attributable to contractholders Total assets 2,101 2,322 Liabilities Overdrafts Mortgages on investment properties Derivatives Net assets attributable to contractholders 2,101 2,322 Expenses Miscellaneous income (loss) Total Income Management fees (note 8) 14 Investment properties expenses Transaction costs Withholding taxes Other 2 Total expenses Net increase (decrease) in net assets from operations attributable to contractholders Statement of Changes in Net Assets Attributable to Contractholders For the years ended Net assets attributable to contractholders beginning of year Contractholder deposits Contractholder withdrawals (484) (82) Increase (decrease) from operations Change in net assets attributable to contractholders Net assets attributable to contractholders end of year 2, December 31 December , (221) 82 2,101 2,322

27 IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands) Statement of Cash Flows Net Inflow (Outflow) of Cash Related to the Following Activities Operating Activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments Realized (gains) losses (62) (19) Unrealized (gains) losses Gross proceeds of disposition of investments Gross payments for the purchase of investments (57) (1) Change in distribution income of underlying mutual fund (130) (190) Change in investment income due and accrued Change in due from/to The GreatWest Life Assurance Company Change in due from/to brokers Change in due from/to outside parties Change in mortgages on investment properties Financing Activities Contractholder deposits Contractholder withdrawals (484) (82) (260) (77) Net increase (decrease) in cash, shortterm deposits and overdrafts Cash, shortterm deposits and overdrafts, beginning of year Cash, shortterm deposits and overdrafts, end of year

28 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except per unit amounts) The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Net Assets Attributable to Contractholders Per Unit (note 7) Number of units outstanding Investment Only Net asset value per unit Individual NoLoad (IA) Individual BackEnd Load (IB) Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy 155, , , , , PS2 75/100 guarantee policy PS2 100/100 guarantee policy Net Assets Attributable to Contractholders by Category Net asset value Investment Only Increase (decrease) per unit Individual NoLoad (IA) Individual BackEnd Load (IB) 2,101 2,322 2,240 2,276 1, Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy PS2 75/100 guarantee policy PS2 100/100 guarantee policy

29 IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 No. of Average Fair Units Cost Value Investment Fund Units Allegro Moderate Aggressive Canada Focus Portfolio Series S* 218,096 1,900 2,101 Total Investments 1,900 2,101 Top 5 Holdings of the underlying funds Underlying fund: Investors Canadian High Yield Income Fund Cash and shortterm deposits 2.50% Westcoast Energy Inc. 8.50% % Rogers Communications Inc. 4.70% % Bank of Montreal 3.12% % Royal Bank of Canada 2.58% % Underlying fund: IG Mackenzie Income Fund Province of Ontario 3.45% % Province of Quebec 4.50% % Province of Ontario 2.60% % Province of Quebec 2.75% % Province of Ontario 4.20% % Underlying fund: Investors Mortgage and Short Term Income Fund Cash and shortterm deposits 4.27% Canada Housing Trust No % % Royal Bank of Canada 2.77% % Canada Housing Trust No % % Province of Ontario 4.40% % *The issuer of this security is a related company to the issuer of the fund.

30 IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG FI Canadian Equity Fund The TorontoDominion Bank 8.99% Royal Bank of Canada 8.92% Suncor Energy Inc. 4.94% Canadian Pacific Railway Ltd. 4.07% Enbridge Inc. 3.58% Underlying fund: Investors Canadian Small Cap Fund Cash and shortterm deposits 3.86% Algonquin Power & Utilities Corp. 2.97% StellaJones Inc. 2.82% Quebecor Inc. Class B SV 2.80% Chartwell Retirement Residences 2.59% Underlying fund: Investors U.S. Large Cap Value Fund Berkshire Hathaway Inc. Class A 3.88% Wells Fargo & Co. 3.50% JPMorgan Chase & Co. 3.25% CSX Corp. 3.21% Exxon Mobil Corp. 3.16% Underlying fund: Investors European MidCap Equity Fund Next PLC 3.61% Baloise Holding AG 3.49% DCC PLC 3.35% Fresenius SE & Co. KGaA 3.00% Persimmon PLC 2.65%

31 IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG Putnam U.S. Growth Fund Amazon.com Inc. 4.38% Alphabet Inc. Class C 4.05% Facebook Inc. 3.85% Apple Inc. 3.75% Visa Inc. Class A 3.70% Underlying fund: Investors Pan Asian Equity Fund Toyota Motor Corp. 4.62% Cash and shortterm deposits 3.36% Samsung Electronics Co. Ltd. 2.20% SoftBank Group Corp. 1.92% Sumitomo Mitsui Financial Group Inc. 1.92% Underlying fund: IG Franklin Bissett Canadian Equity Fund Brookfield Asset Management Inc. Class A 6.07% Canadian National Railway Co. 5.62% The TorontoDominion Bank 5.13% Canadian Imperial Bank of Commerce 4.86% Royal Bank of Canada 4.77% Underlying fund: IG Mackenzie Canadian Equity Growth Fund The Bank of Nova Scotia 3.76% Royal Bank of Canada 3.31% Temp Holdings Co. Ltd. 3.23% Manulife Financial Corp. 3.13% Alimentation CoucheTard Inc. Class B SV 2.95%

32 IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors European Equity Fund British American Tobacco PLC 3.69% Cash and shortterm deposits 3.69% Sampo OYJ A 3.43% Roche Holding AG Genusscheine 3.31% Fresenius SE & Co. KGaA 3.19%

33 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Moderate Aggressive Canada Focus Portfolio Segregated Fund The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Management Expense Ratio (1) (unaudited) No Load BackEnd Load Managed Money 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy (2) Portfolio Turnover Rate (unaudited) Portfolio Turnover Rate (%) (1) (2) The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily net asset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only. No management expense ratio is calculated for the Preferred Series 2 guarantee policy option as such fees are charged directly to the contractholder. The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual Variable Insurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout the year. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year.

34 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund (in Canadian $ thousands) Statement of Financial Position Assets Cash and shortterm deposits Statement of Comprehensive Income December 31 December 31 For the years ended December 31 December Income Net gain (loss) on investments Investment income due and accrued Investment properties income Due from The GreatWest Life Assurance Company (note 8) Due from brokers 2 2 Due from outside parties Investments Bonds Stocks Investment fund units (note 3) 9,648 Investment properties Mortgages and sales agreements Derivatives Due to The GreatWest Life Assurance Company (note 8) 3 Due to brokers 10,534 Total investments 9,648 10,534 Due to outside parties Total liabilities excluding net assets attributable to contractholders Total assets 9,650 10,536 Liabilities Overdrafts 2 2 Mortgages on investment properties Derivatives Net assets attributable to contractholders 9,645 10,530 Expenses Miscellaneous income (loss) Total Income Management fees (note 8) 65 Investment properties expenses Transaction costs Withholding taxes Other 7 Total expenses Net increase (decrease) in net assets from operations attributable to contractholders Statement of Changes in Net Assets Attributable to Contractholders For the years ended Net assets attributable to contractholders beginning of year Contractholder deposits Contractholder withdrawals (1,993) (1,849) Increase (decrease) from operations Change in net assets attributable to contractholders Net assets attributable to contractholders end of year 10, December 31 December , (885) (813) 9,645 10,530

35 (in Canadian $ thousands) IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund Statement of Cash Flows Net Inflow (Outflow) of Cash Related to the Following Activities Operating Activities Increase (decrease) in net assets from operations attributable to contractholders Adjustments Realized (gains) losses (332) (329) Unrealized (gains) losses Gross proceeds of disposition of investments 2,024 1,889 Gross payments for the purchase of investments (383) (191) Change in distribution income of underlying mutual fund (481) (895) Change in investment income due and accrued Change in due from/to The GreatWest Life Assurance Company (1) 3 Change in due from/to brokers (1) Change in due from/to outside parties Change in mortgages on investment properties 1,568 1,619 Financing Activities Contractholder deposits Contractholder withdrawals (1,993) (1,849) (1,568) (1,619) Net increase (decrease) in cash, shortterm deposits and overdrafts Cash, shortterm deposits and overdrafts, beginning of year (2) (2) Cash, shortterm deposits and overdrafts, end of year (2) (2)

36 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund (in Canadian $ thousands, except per unit amounts) The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Net Assets Attributable to Contractholders Per Unit (note 7) Number of units outstanding Investment Only Net asset value per unit Individual NoLoad (IA) Individual BackEnd Load (IB) Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy 686, , ,218 1,080,798 1,158, PS2 75/100 guarantee policy PS2 100/100 guarantee policy Net Assets Attributable to Contractholders by Category Net asset value Investment Only Increase (decrease) per unit Individual NoLoad (IA) Individual BackEnd Load (IB) 9,645 10,530 11,343 11,261 11, Managed Money (IC) 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy PS2 75/75 guarantee policy PS2 75/100 guarantee policy PS2 100/100 guarantee policy

37 IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 No. of Average Fair Units Cost Value Investment Fund Units Allegro Moderate Aggressive Fund Series S* 911,020 8,528 9,648 Total Investments 8,528 9,648 Top 5 Holdings of the underlying funds Underlying fund: Investors Canadian High Yield Income Fund Cash and shortterm deposits 2.50% Westcoast Energy Inc. 8.50% % Rogers Communications Inc. 4.70% % Bank of Montreal 3.12% % Royal Bank of Canada 2.58% % Underlying fund: IG Mackenzie Income Fund Province of Ontario 3.45% % Province of Quebec 4.50% % Province of Ontario 2.60% % Province of Quebec 2.75% % Province of Ontario 4.20% % Underlying fund: Investors Canadian Large Cap Value Fund Royal Bank of Canada 9.64% The Bank of Nova Scotia 8.55% The TorontoDominion Bank 7.58% TransCanada Corp. 5.35% Canadian Imperial Bank of Commerce 5.26% *The issuer of this security is a related company to the issuer of the fund.

38 IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors Canadian Growth Fund Royal Bank of Canada 5.76% The TorontoDominion Bank 4.63% Element Financial Corp. 4.12% Power Financial Corp.* 3.95% The Bank of Nova Scotia 3.77% Underlying fund: Investors Canadian Small Cap Fund Cash and shortterm deposits 3.87% Algonquin Power & Utilities Corp. 2.97% StellaJones Inc. 2.82% Quebecor Inc. Class B SV 2.80% Chartwell Retirement Residences 2.60% Underlying fund: Investors U.S. Large Cap Value Fund Berkshire Hathaway Inc. Class A 3.88% Wells Fargo & Co. 3.50% JPMorgan Chase & Co. 3.25% CSX Corp. 3.21% Exxon Mobil Corp. 3.16% Underlying fund: Investors European MidCap Equity Fund Next PLC 3.61% Baloise Holding AG 3.49% DCC PLC 3.35% Fresenius SE & Co. KGaA 3.00% Persimmon PLC 2.65% *The issuer of this security is a related company to the issuer of the fund.

39 IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: IG Putnam U.S. Growth Fund Amazon.com Inc. 4.38% Alphabet Inc. Class C 4.05% Facebook Inc. 3.85% Apple Inc. 3.75% Visa Inc. Class A 3.70% Underlying fund: Investors Pan Asian Equity Fund Toyota Motor Corp. 4.62% Cash and shortterm deposits 3.36% Samsung Electronics Co. Ltd. 2.20% SoftBank Group Corp. 1.92% Sumitomo Mitsui Financial Group Inc. 1.92% Underlying fund: Investors Pacific International Fund Cash and shortterm deposits 4.41% Samsung Electronics Co. Ltd. 3.78% Taiwan Semiconductor Manufacturing Co. Ltd. 3.35% Tencent Holdings Ltd. 3.15% National Australia Bank Ltd. 3.07% Underlying fund: IG Mackenzie Canadian Equity Growth Fund The Bank of Nova Scotia 3.76% Royal Bank of Canada 3.31% Temp Holdings Co. Ltd. 3.23% Manulife Financial Corp. 3.13% Alimentation CoucheTard Inc. Class B SV 2.95%

40 IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund (in Canadian $ thousands, except number of units) Schedule of Investment Portfolio As at December 31, 2015 Top 5 Holdings of the underlying funds (continued) Underlying fund: Investors Mortgage and Short Term Income Fund Cash and shortterm deposits 4.27% Canada Housing Trust No % % Royal Bank of Canada 2.77% % Canada Housing Trust No % % Province of Ontario 4.40% %

41 The GreatWest Life Assurance Company IG/GWL Investment Funds IG/GWL Allegro Moderate Aggressive Portfolio Segregated Fund The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years. Management Expense Ratio (1) (unaudited) No Load BackEnd Load Managed Money 75/75 guarantee policy 75/100 guarantee policy 100/100 guarantee policy PS1 75/75 guarantee policy PS1 75/100 guarantee policy PS1 100/100 guarantee policy (2) Portfolio Turnover Rate (unaudited) Portfolio Turnover Rate (%) (1) (2) The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily net asset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only. No management expense ratio is calculated for the Preferred Series 2 guarantee policy option as such fees are charged directly to the contractholder. The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual Variable Insurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout the year. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year.