Monitored Avenue Portfolio Program 1 Overview

Monitored Avenue Portfolio Program 1 Overview The Monitored Avenue Portfolio Program 1 (MAPP 1) is an investment solution consisting of both a pre-set fund selection, applied to our Avenue Portfolios (referred to in this document as pre-set Avenue Portfolios), and an à la carte menu of funds. The Program includes monitoring of the investment solution as described below. The Program also includes asset rebalancing and lifecycle movement. Program details 01 Pre-set Avenue Portfolios 1 The pre-set Avenue Portfolios asset allocation models were established using modern Portfolio theory. They were designed to suit the specific needs of investors with different time horizons as well as different risk tolerances, resulting in a variety of asset mixes ranging from more conservative to more aggressive. The Portfolios reflect a range of equity exposure from a low of 35%, in the most conservative risk-averse Portfolio, to 80%, in the most aggressive risktolerant Portfolio. Using a prudent and disciplined approach, a sound combination of funds was selected from our existing Quality & Choice Investment Program ( Q&C ) to populate the pre-set Avenue Portfolios asset allocation model. On a regular basis Standard Life monitors the asset mixes and funds selected for our pre-set Avenue Portfolios (see below for monitoring description). 02 À la carte menu 1 The à la carte roster is intended to provide a diversified platform with a wide array of investment funds, which will allow members who have more investment knowledge the option to pick their own investment mix. The à la carte fund menu under the MAPP 1 platform offers an extensive set of funds as an alternative to the MAPP 1 pre-set Avenue Portfolios. We select and monitor the à la carte group of funds using the same prudent and disciplined approach as for pre-set Avenue Portfolios (see below for description of monitoring). Monitored Avenue Portfolio Program 1 01/06

03 Monitoring Our fund monitoring process is an integral component of the Program; the investment solution is thoroughly monitored, at minimum, on an annual basis to ensure that there is no deviation in the Portfolio s investment objective. Standard Life may, without prior notice, change the investment funds and/or asset mixes. This would result in a change to the investment offering, the investment instructions for future contributions and would trigger an adjustment to the member holdings. MAPP 1 is monitored as follows: All funds in the pre-set Avenue Portfolios and the à la carte menu will be subject to the Q&C governance process. Whether they are in the pre-set Avenue Portfolios or the à la carte menu, all funds are selected from Q&C. Should a fund be removed from Q&C, this would also result in its eventual removal from the Monitored Avenue Portfolio Program. The timing of said fund removal from the MAPP 1 offering will be at the sole discretion of Standard Life. Secondly, since the Monitored Avenue Portfolio Program is based on the pre-set Avenue Portfolio asset allocations, any changes to these asset allocations to keep them up to date with each risk profile would also result in a change to MAPP 1. Of course, we do not expect frequent changes to the asset allocations as these are strategic in nature. Finally, we will review the funds of the investment solution, on an annual basis, or more frequently as decided by Standard Life in response to exceptional investment circumstances. This is done with respect to each fund s role in the overall investment strategy whether under the à la carte fund selection or the pre-set Avenue Portfolios. This means Standard Life will remove, replace, or add funds as it deems necessary to keep the fund roster and pre-set Avenue Portfolios in line with the overall investment objectives as stated in the Program overview. If there is a change to the investment offering, the assets accumulated in the investment fund or funds affected will be adjusted. This includes any associated fees. 2 The Investment Program Team, in compliance with the approved Investment Governance Committee guidelines and procedures, will handle all monitoring mentioned above. 04 Asset rebalancing This service automatically adjusts a member s asset mix on a scheduled basis (once every quarter), in order to keep the member s assets in line with their selected pre-set Avenue Portfolio investment instructions (target asset mix). 3 05 Lifecycle movement This service automatically adjusts the member s pre-set Avenue Portfolio to their investor profile and age as they move towards retirement. 3 1 The Standard Life Assurance Company of Canada does not suggest nor recommend which investment option a member should select, whether it is an investment mix such as the pre-set Avenue Portfolios or a personal investment under the à la carte selection. 2 Adjustments may include, but are not limited to: (1) the liquidation of units or assets in an investment fund and the application of the liquidation proceeds towards the purchase of units or the acquisition of assets in another fund or funds, which may have higher or lower fees; (2) the rebalancing of a member s holdings in line with the new mix determined by The Standard Life Assurance Company of Canada. If there is any change to the investment offering, the investment instructions for future contributions would also be adjusted accordingly. 3 Members may activate or deactivate Lifecycle Movement and/or Asset Rebalancing and provide their target age, using the enrolment form, the VIP Room website or by calling The Standard Life Assurance Company of Canada. Monitored Avenue Portfolio Program 1 02/06

Investment objective The investment objective of the pre-set Avenue Portfolios is to provide capital growth in the longer investment periods and then increasingly provide capital preservation as they move into shorter investment periods 4. The objective of the selection of funds chosen by Standard Life under the à la carte and pre-set Avenue Portfolios in MAPP 1 is to deliver superior risk adjusted return, accordingly, and to provide broad market representation and proper diversification both amongst and within each asset class 4. Provide broad asset class representation Funds chosen for each asset class under MAPP 1 represent the market in which they are invested. Asset allocations for the pre-set Avenue Portfolios were developed using market indices. Subsequently, the selected funds should not deviate significantly from broad market representation. Provide proper diversification amongst and within each asset class To reduce short and medium term Portfolio volatility in absolute and relative terms, funds were chosen to diversify their combination across and within all asset classes. Deliver superior risk adjusted returns versus its relative benchmark over an acceptable time period 4 We will focus on returns on a risk-adjusted basis, and not just in absolute terms. Benchmarks will vary depending on the asset class mix of each box within the pre-set Avenue Portfolios. Relative benchmarks for the underlying asset classes will be applied on a weighted average within the preset Avenue Portfolios. The following benchmarks will be applied: 1. Fixed income allocation (non-gic): FTSE TMX Canada Universe Bond Index 2. Canadian equity allocation: S&P/TSX Composite Index 3. US equity allocation: S&P 500 Index 4. International equity: MSCI EAFE Index The underlying objective for each fund in the à la carte menu is to outperform their individual relative benchmark as provided for in the Statement of Pooled Funds Investment Policies and Goals. 4 Pre-set Avenue Portfolios (including MAPP 1) include segregated funds which value fluctuates with the market, and there is no guarantee that the objectives will be met. The selection of à la carte funds, a pre-set Avenue Portfolio or MAPP 1 does not provide any guarantee that the Program will provide sufficient income at retirement. Monitored Avenue Portfolio Program 1 03/06

Investment strategy The investment strategy of the pre-set Avenue Portfolios under MAPP 1 will be based on the following: Investable universe MAPP 1 funds must be part of Q&C, since these funds are under the review of the Investment Program Team. Fixed Income allocation The pre-set Avenue Portfolios fixed income allocation is a passive investment strategy focused on Index funds. Canadian Equity allocation The pre-set Avenue Portfolios Canadian equity allocation will be made up of two funds with offsetting investment styles and composition (Value focused and Growth focused). Foreign Equity allocation The pre-set Avenue Portfolios foreign equity allocation is made up of two funds (one US equity fund and one International equity fund). Manager diversification To reduce manager risk, in MAPP 1, we seek to minimize duplication of investment managers for all actively managed asset classes. Sector diversification (within Canada and amongst equity asset classes) In the pre-set Avenue Portfolios we analyze sector diversification to reduce concentration in any one particular sector. 1. Canadian Equity allocation: we seek to reduce significant overlap within sectors that would expose the Canadian allocation to a high degree of sector deviation from the benchmark. 2. Canadian/US/International allocation: while maintaining the initial goal of having a broad representation amongst asset classes, we also seek to minimize significant exposure of the overall Portfolio in a particular sector, whether Canadian or foreign. Portfolio sector deviation is acceptable, however, the magnitude and significance of the deviation is what we evaluate. Stock diversification (within Canada) Ultimately, we seek to minimize stock overlap in the Canadian equity component within the pre-set Avenue Portfolios: along with sector diversification, we analyze the individual stock holdings within each Canadian equity fund in order to determine the direct stock correlation between each fund. Change history Date Reason for change Jan 1, 2012 Addenda Bond is no longer offered in the à la carte menu due to its removal from Q&C Addition of SRI Jantzi Social Index Fund (Meritas) to the à la carte menu, adding another level of diversification Sept 28, 2012 In Avenue Portfolios The less than 10 years investment time horizon was split into less than 5 years and between 5 and 10 years time horizons, taking into account the capital protection and liquidity needs of a member retiring in 5 years or less versus one who is retiring in 10 years The proportion of fixed income for a member nearing retirement was increased to ensure a more gradual change as the member moves from one time horizon to the next The foreign equity component asset allocation between US equities and international equities was split evenly to give a more balanced foreign equity exposure May 23, 2013 International Equity Index Fund (SLI) was renamed the International Equity Index Fund (BlackRock). Monitored Avenue Portfolio Program 1 04/06

Monitored Avenue Portfolio Program 1 Conservative Moderate Aggressive More than 25 years 12% True North Fund (Fidelity) 12% Canadian Equity Fund 13% American Equity Fund (MFS) 13% International Equity Fund (SLI) 50% Canadian Bond Index Fund (SLI) 16% True North Fund (Fidelity) 15% Canadian Equity Fund 17% American Equity Fund (MFS) 17% International Equity Fund (SLI) 35% Canadian Bond Index Fund (SLI) 20% True North Fund (Fidelity) 20% Canadian Equity Fund 20% American Equity Fund (MFS) 20% International Equity Fund (SLI) 20% Canadian Bond Index Fund (SLI) 20 and 25 years 11% True North Fund (Fidelity) 11% Canadian Equity Fund 12% American Equity Fund (MFS) 12% International Equity Fund (SLI) 54% Canadian Bond Index Fund (SLI) 15% True North Fund (Fidelity) 15% Canadian Equity Fund 15% American Equity Fund (MFS) 15% International Equity Fund (SLI) 40% Canadian Bond Index Fund (SLI) 18% True North Fund (Fidelity) 18% Canadian Equity Fund 19% American Equity Fund (MFS) 19% International Equity Fund (SLI) 26% Canadian Bond Index Fund (SLI) 15 and 20 years 10% True North Fund (Fidelity) 10% Canadian Equity Fund 11% American Equity Fund (MFS) 11% International Equity Fund (SLI) 58% Canadian Bond Index Fund (SLI) 14% True North Fund (Fidelity) 13% Canadian Equity Fund 14% American Equity Fund (MFS) 14% International Equity Fund (SLI) 45% Canadian Bond Index Fund (SLI) 17% True North Fund (Fidelity) 17% Canadian Equity Fund 17% American Equity Fund (MFS) 17% International Equity Fund (SLI) 32% Canadian Bond Index Fund (SLI) 10 and 15 years 9% True North Fund (Fidelity) 9% Canadian Equity Fund 10% American Equity Fund (MFS) 10% International Equity Fund (SLI) 62% Canadian Bond Index Fund (SLI) 12% True North Fund (Fidelity) 12% Canadian Equity Fund 13% American Equity Fund (MFS) 13% International Equity Fund (SLI) 50% Canadian Bond Index Fund (SLI) 15% True North Fund (Fidelity) 15% Canadian Equity Fund 16% American Equity Fund (MFS) 16% International Equity Fund (SLI) 38% Canadian Bond Index Fund (SLI) 5 and 10 years 8% True North Fund (Fidelity) 8% Canadian Equity Fund 9% American Equity Fund (MFS) 9% International Equity Fund (SLI) 66% Canadian Bond Index Fund (SLI) 11% True North Fund (Fidelity) 10% Canadian Equity Fund 12% American Equity Fund (MFS) 12% International Equity Fund (SLI) 55% Canadian Bond Index Fund (SLI) 14% True North Fund (Fidelity) 14% Canadian Equity Fund 14% American Equity Fund (MFS) 14% International Equity Fund (SLI) 44% Canadian Bond Index Fund (SLI) Less than 5 years 7% True North Fund (Fidelity) 7% Canadian Equity Fund 8% 8% 70% American Equity Fund (MFS) International Equity Fund (SLI) Canadian Bond Index Fund (SLI) 10% True North Fund (Fidelity) 10% Canadian Equity Fund 10% American Equity Fund (MFS) 10% International Equity Fund (SLI) 60% Canadian Bond Index Fund (SLI) 12% True North Fund (Fidelity) 12% Canadian Equity Fund 13% American Equity Fund (MFS) 13% International Equity Fund (SLI) 50% Canadian Bond Index Fund (SLI) Monitored Avenue Portfolio Program 1 05/06

The à la carte funds The à la carte group of funds is intended to offer a complementary set of products and investment styles to the investor. For more detailed fund information, please consult the Standard Life Morningstar fund sheets. Guaranteed Investment vehicles: Daily Interest Accumulator (DIA) 1 year Compound Interest Accumulator (CIA) 2 year Compound Interest Accumulator (CIA) 3 year Compound Interest Accumulator (CIA) 4 year Compound Interest Accumulator (CIA) 5 year Compound Interest Accumulator (CIA) Fixed Income: Canadian Bond Index Fund (SLI) Index Fixed Income Fund Core Money Market Fund (SLI) Balanced Funds: Diversified Funds (SLI) Core Canadian Equity: Canadian Equity Capped Index Fund (SLI) Index Canadian Equity Fund (SLI) Core Canadian Equity Fund Value True North Fund (Fidelity) GARP Canadian Dividend Fund (SLMF) Value Canadian Equity Small Cap Fund (SLI) Small Cap SRI Jantzi Social Index Fund (Meritas) Specialty US Equity: US Equity Index Fund (SLI) Index American Equity Fund (MFS) Core US Equity Fund (GE Asset Management) Blend US Equity Fund (SLI) Core International Equity: International Equity Index Fund (BlackRock) Index International Equity Fund (SLI) Core International Equity Fund (Templeton) Value Emerging Markets Fund (Schroders) Emerging Markets Global Equity Fund: Global Equity Fund (Templeton) Value Important information: Please note that any reference to a change to a monitored investment program does not include changes to the Quality & Choice Investment Program which are subject to the communication protocol found in the most recent Management Report. www.standardlife.ca The Standard Life Assurance Company of Canada Standard Life Assurance Limited GE11838J GS 07-2014 2014 Standard Life 06/06