Top

reasons

to invest in London Life asset allocation funds

•

5reasons

to invest in London Life asset allocation funds

1•

Top 5 reasons1. Stable returns throughout

market cycles

2. Sophisticated investment management methodology

3. Stay in line with expectations

4. outstanding leadership

5. Access to world-class investment managers

Stable returns throughout market cyclesIt’s just as important to protect what you make as it is to earn it. That’s why over the long term, investors look for stability – a way to help smooth out the ups and downs of markets.

London Life asset allocation funds take the emotion out of investing. These portfolios are strategically constructed using sophisticated investment management methodology. They’re designed to help you participate in market upswings while helping to protect capital during downturns. The goal is to deliver stable returns that take risk tolerance into consideration. This can help keep you focused on the long term – even when markets become volatile.

fIrS

T re

ason

Sophisticated investment management methodologyDelivering strong, risk-adjusted returns takes discipline and solid investment management methodology.

2•

The investment manager, portfolio Solutions Group, uses a three-pronged approach:

1. Determine the appropriate asset allocation model for each risk profile – aggressive, advanced, balanced, moderate or conservative.

2. Select a well-diversified mix of complementary funds and combine them to provide the optimal return for each level of risk within the asset mix framework.

3. Adjust fund weights to ensure the portfolio is in line with the manager’s long-term market outlook.

RISK CONTROLS AND MACRO VIEWS

OPTIMIZATION

RISK CONTROLS AND MACRO VIEWS

PORTFOLIO

BOTTOM-UP FUND ANALYSIS AND SELECTION

Fixedincome

Canadianequity

U.S. equity

Internationalequity

ASSETALLOCATION1 2

3

ConservativeModerate

BalancedAdvanced

Aggressive

Ret

urn

Risk (standard deviation)

99-160

5PSG

Sec

on

D

reas

on

Stay in line with expectationscanadians have unique and complex investment challenges and needs. Having the right team of professionals looking after your financial security needs is one of the best ways to resolve those challenges. London Life asset allocation funds can work for you. each portfolio is monitored to ensure it maintains its optimal asset allocation.

3•

checks and balances

• rebalancing systematically keeps the portfolio in line with its target allocation.

• periodically, the entire portfolio is reviewed; fund weights may change, and funds may be added or removed.

In addition, we adhere to a strict investment manager review process to ensure managers within portfolios follow their predetermined investment principles.

portfolios based on investor risk profiles

As illustrated here with London Life asset allocation funds, each client risk profile has a unique construction to meet the portfolio’s objective.

for example, the conservative portfolio focuses on attaining growth with fixed income holdings and a small allocation to large-cap dividend-paying equities. By contrast, the advanced portfolio

holds equities with higher growth potential. The advanced portfolio offsets the risk associated with those equities through its fixed income component. Aggressive portfolio doesn’t hold any fixed income because its focus is primarily on growing capital with equities; and it’s appropriate for those comfortable taking on more risk.

Conservative

Moderate

Balanced

Advanced

Aggressive

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

Real estate

Fixed income

Foreign equity

Total balanced

Canadian equity

Canadian specialty

Forgein specialty

THIr

D

reas

on

4•

outstanding leadershipresponsible for $14 billion* in assets, portfolio Solutions Group is a team of experienced professionals with over 20 years of combined investment management experience.

portfolio Solutions Group is a division of London Life Insurance company.

* At December 2011

fou

rTH

re

ason

Access to world-class investment managersportfolio Solutions Group carefully selects the investment managers and underlying funds that make up the portfolios. This means you can be confident your portfolio is managed by some of the world’s leading money managers.

5•

for more information about London Life asset allocation funds and how they are constructed to work for you, talk to your financial security advisor.

fIfT

H

reas

on

A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

* In Quebec, advisor refers to a financial security advisor for individual insurance and segregated fund policies; and to an advisor in group insurance/annuity plans for group products.

London Life and design are trademarks of London Life Insurance Company. 46-8310-1/12

Po r t f o l i o S o l u t i o n s G r o u p