SLGI ASSET MANAGEMENT INC.

INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE for the period ended June 30, 2021

Sun Life BlackRock Canadian Composite Equity Fund This page is intentionally left blank Sun Life BlackRock Canadian Composite Equity Fund

This interim management report of fund performance contains financial highlights but does not contain the complete financial statements of the investment fund. You can request a free copy of the semi-annual financial statements (unaudited) by calling 1-877-344-1434, by sending an email to us at [email protected] or by writing to us at SLGI Asset Management Inc., 1 York Street, Suite 3300, , Ontario, M5J 0B6. The financial statements are available on our website at www.sunlifeglobalinvestments.com and on SEDAR at www.sedar.com. Securityholders may also contact us using one of these methods to request a copy of the investment fund’s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure. SLGI Asset Management Inc. (the "Manager") is an indirect wholly owned subsidiary of Inc.

MANAGEMENT DISCUSSION OF FUND Recent Developments PERFORMANCE A year ago COVID-19 swept across the world triggering sharp market declines. Economic activity slowed as governments worldwide applied lockdown measures to limit the spread of Results of Operations the virus. Global equity markets recovered after the arrival of During the period, the net asset value of the Sun Life COVID-19 vaccines and billions of dollars of stimulus BlackRock Canadian Composite Equity Fund (the “Fund”) spending by governments worldwide. Central banks globally increased from $1.5 billion to $2.0 billion due to positive net lowered or kept their benchmark interest rates low to aid the sales, as well as positive performance. economic recovery. The Manager cautioned an uneven economic recovery pending COVID-19 infection rates as well During the period, the Fund returned 17.3% for Series I as questions around the need for continued government securities, this result equalled the Fund's benchmark, stimulus to aid an economic recovery. S&P/TSX Capped Composite Index, which returned 17.3%. The broad-based index, S&P/TSX Composite Index, returned The Manager will stop offering the deferred sales charge 17.3%. We have included the returns of the broad-based (“DSC”) and low load sales charge (“LL”) purchase options on index to help you understand how the Fund performed each of its Funds. This change will take place after the close compared to the general market. Please refer to the ‘Past of business on or about November 26, 2021 across all Performance’ section of this report for performance of the Funds. series. After November 26, 2021, all DSC and LL purchase options The Fund matched the broad-based index during the will be closed to purchases, including purchases made reporting period. The Fund’s holdings in Energy and through systematic plans such as pre-authorized chequing Financials contributed to performance during the period. plans. Securities purchased under the DSC and LL purchase options on or prior to November 26, 2021 may continue to During the period, equity markets picked up where they left be held in investor accounts. Switching securities between off in the final months of 2020. Investors have moved Funds held under the DSC or LL purchase option will toward companies that benefited from the re-opening of the continue to be permitted. economy. Examples include restaurants, hotel chains, and airlines. In general, global market sentiment turned positive We are implementing these changes in anticipation of driven by optimism on COVID-19 vaccination progress. The regulatory changes mandated by the Canadian Securities continued high level of financial aid from global governments Administrators ending the sale of DSC and LL purchase has helped with the momentum. options across all Canadian jurisdictions that takes effect on June 1, 2022. Utilities and Consumer Staples sectors lagged as investors shifted toward companies that gained from the economic For any impacted systematic plans that are investing into recovery. DSC or LL purchase options, new instructions will need to be provided on or before November 26, 2021. Without new instructions, these systematic plans will be terminated after November 26, 2021.

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Effective on or before March 31, 2022, the Manager will no The relevant standing instructions require that securities longer pay trailing commissions to dealers that do not make transactions with related parties conducted by the Manager suitability determinations (the “Impacted Dealers”), such as (i) are free from any influence by an entity related to the Order Execution Only dealers. The Manager is implementing Manager and without taking into account any consideration this change in anticipation of the regulatory requirement relevant to an entity related to the Manager; (ii) represent mandated by the Canadian Securities Administrators to end the business judgment of the Manager uninfluenced by the payment of trailing commissions to Impacted Dealers considerations other than the best interests of the Fund; (iii) that takes effect on June 1, 2022. Effective on or before comply with the applicable policies and procedures of the March 31, 2022, accounts at Impacted Dealers will only be Manager; and (iv) achieve a fair and reasonable result for the permitted to purchase or hold securities of the following Fund. series of SLGI Asset Management mutual funds, each of Fees and expenses payable to or in connection with the Sun which does not pay trailing commissions. The permitted Life Funds’ IRC are allocated to the series to which they apply Fund series includes Series F, Series F5, Series FT5, in a manner that, in the Manager’s view, is considered fair Series F8, Series FT8, Series FH, Series IS, Series O and and reasonable. The amounts of these charges are disclosed Series OH. in the line item “Independent review committee fees” in the Fund’s Statements of Comprehensive Income (Loss). Related Party Transactions SLGI Asset Management Inc. is the manager, trustee and The Manager has a distribution agreement with Sun Life portfolio manager of the Fund. For its services, the Manager Financial Investment Services (Canada) Inc. (the “Dealer”), a receives a management fee that is calculated as a company under common control under which the Dealer percentage of the average net asset value of the Fund. This may distribute securities of the funds offered by the Manager fee is calculated daily and payable monthly. in the jurisdictions in which the Dealer is so authorized. The Manager is responsible for the provision of all general The Manager is an indirect wholly owned subsidiary of Sun management and administrative services required by the Life Financial Inc. Fund in its day-to-day operations, including providing or arranging for the provision of investment advice, Fund Administrative Expenses bookkeeping, recordkeeping and other administrative The Manager pays certain operating expenses of the Fund services for the Fund. (the “Administration Expenses”) in return for a fixed administration fee paid to the Manager by the Fund As trustee, the Manager holds legal title to the Fund's (“Administration Fee”). The Administration Fee is based on investments in trust for securityholders. the net asset value of each series of securities of the Fund. As portfolio manager, the Manager is responsible for The Administration Expenses include, but are not limited to, managing the investment portfolio of the Fund directly or record keeper fees, accounting, audit and legal fees, bank through sub-advisors. The Manager has retained BlackRock and interest charges, safekeeping and custodial fees, taxes, Asset Management Canada Limited to act as a sub-advisor administrative and systems costs, costs of reports to for the Fund. investors, prospectuses and other disclosure documents, regulatory filing fees (including those incurred by the Certain mutual funds managed by the Manager (“Sun Life Manager) and trustee fees for registered plans. The amount Funds”) may have direct or indirect holdings in Sun Life of this charge is disclosed as Fixed annual administration fees Financial Inc. or its affiliates or other funds managed by SLGI in the Fund’s Statement of Comprehensive Income found in Asset Management Inc., or its affiliates. Other funds managed the semi-annual financial statements (unaudited). by SLGI Asset Management Inc., or its affiliates, may invest in securities of the Sun Life Funds. The Fund also pays certain operating expenses directly (the “Fund Costs”). Fund Costs include: borrowing costs incurred The Fund relied on standing instructions from the by the Fund from time to time; costs in connection with Independent Review Committee ("IRC") in respect of trades portfolio transactions; fees and expenses payable to or in in securities of Sun Life Financial Inc. connection with the Fund’s IRC; taxes payable by the Fund; and the costs of complying with any new regulatory or legal requirement imposed on the Fund. The Fund allocates Fund Costs proportionately among each series of securities of the Fund to which they apply. The Fund Costs that are specific to a series of securities are allocated to that series. These amounts are paid out of the assets attributed to each series of securities of the Fund, which reduces the return you may receive.

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Financial Highlights Ratios and Supplemental Data The following tables show selected key financial information about the Fund and are intended to help you understand the Sun Life BlackRock Canadian Composite Equity Fund - Fund’s financial performance for the previous five years or Series I for the periods since inception to June 30, 2021. 2021 2020 2019 2018 2017 2016 Total net asset The Fund’s Net Asset Value per Security ($)(1) value ($000s)(1) 1,955,353 1,470,314 1,890,285 1,400,001 1,016,182 836,699 Number of securities outstanding(1) 141,781,284 125,087,035 160,430,509 140,428,464 90,538,946 75,924,893 Sun Life BlackRock Canadian Composite Equity Fund - Management expense Series I ratio (%) ------Management expense 2021 2020 2019 2018 2017 2016 ratio before waivers or ($) ($) ($) ($) ($) ($) absorption (%)(2) ------Net asset value, beginning of Trading expense period 11.75 11.78 9.97 11.22 11.02 9.35 ratio (%)(3) 0.01 0.02 0.01 0.02 0.02 0.01 Increase (decrease) from operations: Portfolio turnover rate (%)(4) 4.20 31.04 18.09 6.09 30.33 6.37 Total revenue 0.17 0.36 0.35 0.33 0.31 0.30 Net asset value per Total expenses ------security ($)(1) 13.79 11.75 11.78 9.97 11.22 11.02 Realized gains (losses) for the (1) period 0.11 (0.40) 0.06 0.01 0.34 (0.02) This information is provided as at December 31 of the period shown, except for the most recent semi-annual period, which is at June 30, 2021. Unrealized gains (losses) for the (2) Management expense ratio is based on total expenses (excluding broker period 1.75 (0.36) 1.83 (1.51) 0.32 1.69 commissions and other portfolio transaction costs) including the Fund’s allocated Total increase (decrease) from percentage of Fund-on-Funds’ expenses for the stated period and is expressed as an operations(2) 2.03 (0.40) 2.24 (1.17) 0.97 1.97 annualized percentage of daily average Net Asset Value during the period. (3) The trading expense ratio represents total commissions and other portfolio Distributions: transaction costs expressed as an annualized percentage of daily average Net Asset From income (excluding Value during the period. dividends) - (0.01) (0.03) (0.03) (0.02) (0.03) (4) The Fund’s portfolio turnover ratio indicates how actively the Fund’s portfolio From dividends - (0.38) (0.33) (0.23) (0.29) (0.26) manager manages its portfolio investments. A portfolio turnover ratio of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in From capital gains - (0.26) (0.09) - (0.48) - the course of the year. The higher a Fund’s portfolio turnover ratio in a year, the Return of capital ------greater the trading costs payable by the Fund in the year, and the greater the Total annual distributions(3) - (0.65) (0.45) (0.26) (0.79) (0.29) chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the Net asset value, end of period 13.79 11.75 11.78 9.97 11.22 11.02 performance of the Fund.

(1) This information is derived from the Fund’s audited annual financial statements and from the semi-annual unaudited financial statements for the current period ended June 30, 2021. Management Fees (2) Net Assets and distributions are based on the actual number of securities The maximum annual management fee paid by the Fund is a outstanding at the relevant time. The increase/decrease from operations is based on percentage of the average daily net asset value of each the weighted average number of securities outstanding over the financial period. (3) Distributions were paid in cash, reinvested in additional securities of the Fund, or series of securities of the Fund exclusive of any applicable both. taxes and operating expenses, which is accrued daily and is paid to the Manager monthly in arrears. Management fees pay for portfolio and investment advisory services, oversight of any service providers, marketing and promotional activities, arranging for the distribution and sale of securities of the Fund, general administration of Fund operations and sales and trailing commissions paid to dealers. Series I management fees are not paid by the Fund. Series I investors negotiate management fees and pay directly to the Manager.

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Past Performance Summary of Investment Portfolio* The performance information shown assumes that all as at June 30, 2021 distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The Top 25 Investments performance information does not take into account sales, redemption, distribution, other optional charges or income Percentage of Net tax payable by any securityholder that would have reduced Asset Value of the Holding Name Fund (%) returns or performance. How the Fund has performed in the 1 Inc. 7.0 past does not necessarily indicate how it will perform in the 2 6.2 future. 3 The Toronto-Dominion Bank 5.4 4 Inc. 3.5 Year-by-Year Returns 5 The Bank of Nova Scotia 3.4 The following bar chart shows the Fund’s annual 6 Canadian National Railway Co. 3.2 performance for the period shown. The chart shows, in 7 Brookfield Asset Management Inc. 3.1 percentage terms, how much an investment made on the 8 2.8 first day of each financial year would have grown or 9 Ltd. 2.2 decreased by the last day of each period. 10 Canadian Imperial Bank of Commerce 2.2 11 TC Energy Corp. 2.1 Series I Securities – Annual return for the periods ended 12 BCE Inc. 1.9 December 31 and the six month period ended June 30, 2021 13 Canadian Natural Resources Ltd. 1.8 14 Financial Corp. 1.6 30% 15 Corp. 1.6 22.7% 21.0% 16 Inc. 1.5 20% 17.3% 17 Ltd. 1.5 13.0% 10.6% 18 Waste Connections Inc. 1.3 9.0% 10% 7.2% 5.3% 19 Alimentation Couche-Tard Inc. 1.3 20 Corp. 1.3 0% 21 Sun Life Financial Inc. 1.3 22 Constellation Software Inc. 1.3 -10% -8.3% -8.9% 23 Franco-Nevada Corp. 1.2 -11.8% 24 Inc. 1.1 -20% 25 1.1 2011(*) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 60.9 (*) for the period of April 15, 2011 to December 31, 2011. Total Net Asset Value (000s) $ 1,955,353

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Sector Allocation Forward-Looking Statements This management report of fund performance may contain Percentage of Net Asset Value of the forward-looking statements about the Fund, including its Fund (%) strategies, results of operations, performance and condition. Financials 31.3 Forward-looking statements include statements that are Energy 12.9 predictive in nature, or that depend upon or refer to future Materials 11.6 events or conditions. They are based on current beliefs, Industrials 11.4 expectations and projections about future events and are Information Technology 11.1 inherently subject to, among other things, risks, uncertainties Communications Services 4.9 and assumptions about the Fund and various economic Utilities 4.5 factors. Many factors could cause the Fund’s actual results, Consumer Discretionary 3.9 performance or achievements to be materially different from Consumer Staples 3.5 any future results, performance or achievements that may be Real Estate 3.2 expressed or implied by such forward-looking statements. Health Care 1.4 These factors could include, among other things, general Other Assets less Liabilities 0.2 economic, political and market factors, including interest and Cash and Cash Equivalents 0.1 foreign exchange rates, business competition, technological 100.0 changes, changes in government regulations or in tax laws and (*) All information is as at June 30, 2021. The summary of investment portfolio may pandemics. Although the forward-looking statements change due to ongoing portfolio transactions of the Fund. Unless otherwise noted positions are long. You may obtain quarterly updates to these holdings free of contained in this report are based upon what management charge by calling us at 1-877-344-1434, visiting our website at currently believes to be reasonable assumptions, the Manager www.sunlifeglobalinvestments.com or by sending an email to us at cannot assure current or prospective investors that actual [email protected]. results, performance or achievements will be consistent with these forward-looking statements. The words “may”, “could”, “would”, “should”, “believe”, “plan”, “anticipate”, “expect”, “intend”, “forecast”, “objective”, and similar expressions are intended to identify forward-looking statements. The Manager does not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this document or to reflect new information or the occurrence of unanticipated events, except as required by law.

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Sun Life BlackRock Canadian Composite Equity Fund

SLGI Asset Management Inc. 1 York Street, Suite 3300, Toronto, Ontario, M5J 0B6 Telephone: 1-877-344-1434 | Facsimile: 416-979-2859 [email protected] www.sunlifeglobalinvestments.com

© SLGI Asset Management Inc. and its licensors, 2021. SLGI Asset Management Inc. is a member of the Sun Life group of companies. All rights reserved. Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada and Sun Life Financial Trust Inc. SLGI Asset Management Inc. is the investment manager of the Sun Life Mutual Funds, Sun Life Granite Managed Solutions and Sun Life Private Investment Pools.