Canada Life investment plans Originally with Great-West Life

Investment funds

Information folder May 2021

The Assurance Company is the sole issuer of the individual variable annuity policy described in this information folder. This information folder is not an or annuity contract.

This information folder is not complete without the applicable fund facts booklet. Both the information folder and fund facts booklet must be received.

Canada Life and design are trademarks of The Canada Life Assurance Company.

B2260 – 5/21 This information folder is not an insurance contract. The information in this folder is subject to change from time to time. If there is a difference between this information folder and your contract, your contract will apply.

In this information folder, you and your mean the policyowner of a Canada Life investment plan. We, us, our and Canada Life mean The Canada Life Assurance Company.

About Canada Life

The Canada Life Assurance Company, a subsidiary of Great-West Lifeco Inc. and a member of the Power Corporation group of companies, provides insurance and wealth management products and services. Founded in 1847, Canada Life is the country’s first domestic life insurance company. In January 2020, Canada Life along with The Great-West Life Assurance Company and Life Insurance Company became one company – The Canada Life Assurance Company.

The terms and conditions of the policies issued by Canada Life and the distribution of the policies are governed by the insurance acts of the provinces and territories in Canada where Canada Life carries on business.

Canada Life’s administrative offices are located at:

London 255 Dufferin Ave London ON N6A 4K1

Montréal 1350 Boul. René-Lévesque W., M-1110 Montréal QC H3G 1T4

Canada Life’s head office is located at:

Winnipeg 100 Osborne St N MB R3C 3A5

Certification This information folder contains brief and plain disclosure of all material facts relating to the investment fund option available in the Flexible Accumulation Annuity or Flexible Income Fund investment plans offered under this folder and issued by The Canada Life Assurance Company.

March 31, 2021

Jeffrey F. Macoun Douglas A. Berberich President and Chief Operating Officer, Senior Vice-President and Associate General Counsel, Canada Canada Key facts about the Canada Life Flexible Accumulation Annuity and Flexible Income Fund investment plans and investment funds offered under this information folder This summary provides a brief description of the basic things you should know before you apply for this individual variable insurance contract. This summary is not your contract. A full description of all the features and how they work is contained in this information folder and your contract. You should review these documents and discuss any questions you have with your financial security advisor.

What am I getting? On this date, you will receive the greater of: You are getting an insurance contract between • The market value of the funds, or you and The Canada Life Assurance Company. It gives you a choice of investment funds (also • 75 per cent of the money you put in the funds known as segregated funds) and provides certain Death benefit guarantee guarantees. This protects the value of your investment if the You can: insured person dies. It is paid to someone you • Pick a registered or non-registered contract name. • Choose one or more investment funds The death benefit applies if the insured person • Name a person to receive the death benefit dies before the maturity date. It pays the greater of: • Withdraw money from your contract • • Receive regular payments now or later The market value of the funds, or • 75 per cent of the money you put in the funds The choices you make may affect your taxes, see the section Your income tax considerations. They What investments are available? could also affect the guarantees, see the section You can invest in the investment funds described in Examples of how redeeming units affects the basic the Fund Facts booklet which is provided with this amount and reduces the guaranteed value. Ask information folder. your financial security advisor to help you make these choices. Other than any maturity and death benefit guarantees, Canada Life does not The value of your contract can go up or guarantee the performance of the down subject to the guarantees. investment funds. Carefully consider your tolerance for risk when you select a fund. What guarantees are available? A death benefit guarantee applies, and you may get How much will this cost? a maturity guarantee. These help protect your fund The investment funds you select affect your investments. For details about the guarantees, see costs. The investment funds are available on a the Basic guaranteed benefits section. no-load and back-end load basis. For full You pay fees for this protection. The fees are details, see the section Sales charge options included in the management expense ratio, which and the Fund Facts for each fund which are is described in the Fees and expenses section. found in the Fund Facts booklet provided with this information folder. Any withdrawals you make will reduce the guarantees. For full details please see the Fees and expenses are deducted from the Basic guaranteed benefits section. investment funds. They are shown as management expense ratios or MERs on the Maturity guarantee Fund Facts for each fund. This protects the value of your investment at If you make certain transactions or other requests, a specific date in the future, which is called you may be charged separately for them and this the maturity date. This date is explained in includes a short-term trading fee. the When your plan matures section.

1 For full details, see the section Fees and expenses Can I change my mind? and the Fund Facts for each fund which can be Yes, you can: found in the Fund Facts booklet. • Cancel the contract What can I do after I purchase • Cancel any additional lump-sum this contract? premium you make If you wish, you can do any of the following: • Cancel the initial automatic monthly premium To do any of these, you must tell us in writing Exchanges within two business days of the earlier of: You may exchange from one fund to another. See • The day you receive the confirmation the section How to exchange investment fund of your transaction, or units. • Five business days after we mail the Withdrawals confirmation to you You can withdraw money from your contract. If you The amount returned will be the lesser of the decide to, this will affect your guarantees. You may amount you invested or the value of the also need to pay a fee or taxes. See the section applicable units you acquired on the day we How to redeem investment fund units. process your request. The amount returned will include a refund or any sales charge or other Premiums fees you paid. The transaction may generate a You may make lump-sum or regular payments. taxable result and you are responsible for any See the section How to allocate premiums to income tax reporting and payment that may be investment fund units. required as result of any transaction. Regular payments If you change your mind about a specific At a certain time, unless you select another option, additional premium, the right to cancel only we will start making payments to you. See the applies to that transaction. section When your plan matures. Where can I get more information? Certain restrictions and other conditions may apply. Review the contract for your rights and obligations You may call us at 1-888-252-1847 or send us and discuss any questions with your financial an email. To send an email, please go to our security advisor. website and then to the “Contact Us” section. Information about our company and the products and services we provide is on our What information will I receive about website at canadalife.com. my contract? For information about handling issues you are We will tell you at least once a year the value of your unable to resolve with us, contact the investments and any transactions you have made OmbudService for Life and Health Insurance at during the year. 1-800-268-8099 or on the Internet at olhi.ca. You may request more detailed financial Additionally, if you are a resident of Quebec statements of the funds. These are updated at contact the Information Centre of the Autorité certain times during the year. des marchés financiers (AMF) at 1-877-525-0337 or at [email protected] For full details, see the section Administration of the investments funds. For information about additional protection available for all life insurance policyowners, contact Assuris, a company established by the Canadian life insurance industry. See assuris.ca for details. For information about how to contact the insurance regulator in your province, visit the Canadian Council of Insurance Regulators website at ccir-ccrra.org.

2 Table of contents

Key facts about the Canada Life Flexible Accumulation Annuity and Flexible Income Fund investment plans and investment funds offered under this information folder ...... 1

How Canada Life investment plans work ...... 4

How our investment funds work ...... 7

Allocating premiums, redeeming, and exchanging investment fund units ...... 9

When your plan matures ...... 11

Basic guaranteed benefits ...... 12

Fees and expenses ...... 14

Your income tax considerations ...... 16

Administration of the investment funds ...... 18

Investment policy ...... 19

Investment managers ...... 20

Fund risks ...... 21

Fund facts ...... 26

Glossary of terms ...... 27

3 applies to all investment plans. The second How Canada Life part provides specific information about the investment plans work investment funds. A glossary of terms is located at the back of this information folder and provides an Introduction explanation of some of the terms used in the The Canada Life Flexible Accumulation Annuity folder. or Flexible Income Fund plan is an individual variable insurance contract based on the life of the Non-registered plans insured person, also known as the annuitant, that you name on the application form. A non-registered plan can be owned by a single individual or jointly by several There are three types of plans available: individuals. Normally, there will only be one • Non-registered plans annuitant, who can be the policyowner or someone else. • Registered retirement savings plans (RRSPs) You may be subject to early redemption fees • Registered retirement income funds (RRIFs) under your plan. For more information about Locked-in RRSPs, locked-in retirement accounts these fees, see Early redemption fees for (LIRAs), restricted locked-in savings plans back-end load units. (RLSPs) are three specific types of RRSPs. You For information about tax implications, see can only open locked-in RRSPs, LIRAs and RLSPs Your income tax considerations. with money transferred directly from plans, if allowed by federal or provincial pension laws; Non-registered plans – joint annuitants pension laws place certain restrictions on them. Joint annuitants are the persons upon whose Since otherwise all RRSPs work the same way, life the policy is based. Joint annuitants must whether or not they are locked-in RRSPs, LIRAs or be either married, civil union spouses or in a RLSPs, we’ll simply refer to them as RRSPs common-law relationship with each other at the throughout the rest of this information folder. time of the application. Prescribed retirement income fund (PRIF), locked-in The joint annuitants must also be joint retirement income funds (LRIFs), life income funds policyowners with rights of survivorship (where (LIFs) and restricted life income funds are four Quebec law applies, rights of survivorship specific types of RRIFs. Unless, we say otherwise, means accretion). when we refer to features of a RRIF, they also apply to a PRIF, LIF, LRIF and RLIF. When joint annuitants apply for a joint policy on the application, the word “policyowner” Each type of plan allows you, as the policyowner, to and “you” in this folder will mean both joint allocate premiums to a daily interest account, policyowners. guaranteed interest options and investment funds. When you pay premiums to your plan, it These plans will be subject to the same automatically goes first into your daily interest rules as non-registered plans unless account. From there you can transfer it to a noted. guaranteed interest option or to an investment fund. Upon the death of a joint annuitant, the This information folder describes the investment surviving annuitant will become the sole funds available and the maturity and death benefit annuitant and policyowner. The death guarantees that come with them. For more benefit will only be paid on the death of the information about guaranteed interest options, last annuitant while the policy is in force. please contact your Canada Life financial security When we refer to the age of an annuitant, we advisor. mean the age of the younger of the two joint Your plan is a deferred annuity, which means at annuitants. The maturity date will be maturity, annuity payments will commence, unless determined at issue based on the age of the you choose otherwise. For more information, see youngest annuitant. The maturity date will not When your plan matures. change if the younger annuitant dies first. This document is divided into two parts. The Following the maturity date, if an annuitant is first part contains general information that living and has not previously indicated an alternative preference, annuity payments will

4 commence. If both annuitants are living, the Product Non-registered, Systematic annuity will be based on and be guaranteed feature RRSPs, LIRAs, redemption for the life of both annuitants. locked-in RRSPs plan (non- Otherwise, the annuity will be based on and be and RLSPs registered guaranteed for the life of the surviving only) annuitant. No-load Back- option end load option RRSPs, LIRAs, locked-in RRSPs and RLSPs Minimum lump sum $50 $50 $50 An RRSP is an investment plan registered under premium the Income Tax Act (Canada). Minimum The contributions you make to your RRSP are tax systematic N/A N/A $50 deductible and there is a maximum amount you redemption can contribute each year under the Income Tax Act Minimum (Canada). You can also transfer money directly partial $250 $250 $250 from an RRSP at another financial institution or redemption from a pension plan, if federal or provincial pension Redemption laws allow it. There are no limits on the amount of Yes, if subject to transfers from RRSPs. There are limits under the back- end possible No Yes Income Tax Act (Canada) for transfers from load option early defined benefit pension plans. selected redemption Only one person, who must also be the annuitant, fee can own an RRSP. Current as of the date of the information folder – subject to change For information about tax implications, see Your income tax considerations. RRIFs, PRIFs, LRIFs, LIFs and RLIFs Features of non-registered, RRSPs, LIRAs, locked- A RRIF is a plan that gives you regular income in RRSPs, RLSPs and systematic redemption plan payments and is registered under the Income policies are summarized in the following table: Tax Act (Canada). You can only open a RRIF with money Product Non-registered, Systematic transferred directly from an RRSP or another feature RRSPs, LIRAs, redemption RRIF. You can only open PRIFs, LRIFs, LIFs locked-in RRSPs plan (non- and RLIFs with money transferred directly from and RLSPs registered a pension plan, from a locked-in RRSP, LIRA No-load Back- only) and RLSP, or from another PRIF, LRIF, LIF or option end load RLIF, where federal or provincial pension laws option allow you to. We currently offer RRIFs and LIFs across Canada, and PRIFs in Saskatchewan Maximum and . RLIFs are only available where issue age 85 85 85 the money is administered under federal Non- pension legislation. registered Under the Income Tax Act (Canada), you must RRSPs, 71 71 N/A redeem a minimum amount each year as an LIRAs, income payment from these plans. For LRIFs, locked-in LIFs and RLIFs there is also a maximum RRSPs and amount you may redeem each year. RLSPs Only one person, who must also be the Minimum $300 lump sum or $50 automatic annuitant, can own a RRIF, PRIF, LRIF, LIF or initial monthly premium RLIF. premium You may be subject to early redemption fees Minimum $50 unless following under your plan. For more information about automatic DISCOVERYTM strategic asset these fees, see Early redemption fees for monthly allocation automatic monthly back-end load units. transfer transfer must be an average of no less than $25 per fund

5 You can schedule periodic income payments Product feature RRIF/PRIF/LRIF/ from your RRIF. During the first calendar year, LIF/RLIF you may receive up to 20 per cent of the original premiums in payments without paying an early Minimum partial or $250 - A maximum redemption fee. In subsequent years, you may unscheduled free redemption receive up to 20 per cent of the Jan. 1 market redemption percentage of 20 per value of the funds in the policy without paying an cent is allowed for early redemption fee. Amounts received in partial redemptions excess of 20 per cent may be subject to an early in each calendar redemption fee. For more information about fees year. (Automatic to change the amount or frequency of your income payments payments, please see Charge for changing the are included in the amount or frequency of your scheduled periodic 20 per cent free income payments. For information about tax redemption per implications, see Your income tax year.) considerations. Minimum exchange $50 Features of these policies are summarized in the to another fund following table: Current as of the date of the information folder – subject to change Beneficiaries You may designate one or more beneficiaries Product feature RRIF/PRIF/LRIF/ to receive any death benefit payable under LIF/RLIF the policy. You may revoke or change the Maximum issue age for 90 designation prior to the maturity date, subject RRIF, PRIF, LRIF, RLIF to applicable law. If the designation is and LIF irrevocable, you cannot revoke or change it or exercise certain other specific rights without the written consent of the irrevocable beneficiary in accordance with applicable law. If the policy is a LIRA, LRSP, RLSP, PRIF, LIF, RLIF or LRIF, the interest of your spouse, civil union spouse or common-law partner can take priority over a beneficiary designated by you, depending on Minimum initial premium – $10,000 applicable pension legislation. existing client of Canada Life

Minimum initial premium $20,000 – new client to Canada Life

Minimum lump sum premium $50 per fund

Minimum automatic $50 unless following transfer to an investment DISCOVERYTM fund strategic asset allocation automatic monthly transfer must be an average of no less than $25 per fund Minimum automatic Legislative minimum scheduled income payments

6 It’s important to diversify your investments, How our investment which means investing in funds which have a variety of assets and investment styles. For funds work more information about diversification and other risks involved in investment funds, see Fund Each of our investment funds is a segregated fund, risks. which is a pool of investments kept separate, or segregated, from the general assets of Canada You can choose from different investment funds Life. Each investment fund is divided into different and this broad choice provides a good classes with each class having an unlimited number opportunity for you to diversify your of notional units of equal value. For more investments. In addition, there are asset information about unit value, see How we value allocation funds that are specially designed to investment fund units. increase diversification. We refer to our asset allocation funds as Canada Life portfolio funds. When you transfer money from your daily interest They are explained in more detail below. All the account to investment funds, units are allocated to investment funds currently available are your plan, but you do not actually own, buy or sell described in detail in the Fund Facts booklet any part of the investment funds or any units. which is provided with this information folder. Instead, we hold the assets of the investment funds. This also means that you don’t have any voting rights associated with the investment funds. We Portfolio funds calculate the value and the benefits to which you Each portfolio fund invests in a variety of other are entitled based on the value of the units funds. They offer you an easy way to diversify allocated to your plan on a particular date less any your investments by investing in a single fund. applicable fees and charges. A portfolio fund may offer you diversification among: Neither your plan nor your units give you an • Types of assets, such as shares, ownership interest in Canada Life or voting rights in bonds, mortgages and real estate connection with Canada Life. When you select an investment fund that invests in units of a mutual • The entities that issue the assets, such as fund, you will not be a unitholder of the . shares in large, small or resource-based companies, and bonds issued by We have the right to subdivide or consolidate the governments or companies units of an investment fund. If we subdivide the units of a fund, there will be a decrease in the unit • Assets in different countries value. If we consolidate the units of a fund, there will • Investment advisors with different be an increase in the unit value. If we subdivide or investment styles consolidate the units of an investment fund, the We may review the composition of the portfolio market value of the investment fund and the market funds from time to time. When required, we value of your plan will not change. We will give you may change the: advance written notice if we have decided to do so. • Funds the portfolio fund holds We have the right to add, restrict the allocation of • Percentages of each fund the premiums or exchanges, close and terminate an portfolio fund intends to hold existing investment fund. If we do close an investment fund, you cannot allocate a premium or • Number of funds the portfolio fund holds exchange to the investment fund. If we do close an investment fund, it may be reopened for investment Sales charge options at our discretion. We will notify you in writing 60 days before we terminate an investment fund or No-load and back-end load units make a material change to the fundamental We currently offer two different classes of investment objectives of an investment fund. For investment fund units: no-load units and back- more information, see Fundamental changes to the end load units. investment funds. You can hold either no-load units or back-end load units in your plan, but not both in one plan.

7 Fundamental changes to the investment No-load units funds With no-load units, you don’t pay any fees when you allocate a premium to a fund, If we make any of the following changes to an redeem or exchange units, subject to a investment fund, we will notify you in writing 60 days short-term trading fee. For more information, before the change occurs. The notice will be sent by see Short-term trading. However, investment regular mail to the most recent address we have for management fees are higher for no-load units you in our records. than for back-end load units. For more information, • Increase the fee see Fees and expenses. • Material change to the investment objective Back-end load units • Decrease the frequency with which the With back-end load units, you don’t pay any fees fund is valued when you allocate a premium to a fund or exchange During the notice period, you will have the right units. However, you may have to pay a fee if you to exchange the value of your units from the redeem units within seven years of allocating a affected investment fund to a similar premium to a fund. For more information, see Early investment fund that is not subject to the redemption fees for back-end load units. You may fundamental change without charge provided also be subject to a short-term trading fee. For you advise us at least five business days prior more information, see to the change happening. We will advise you of Short-term trading. similar investment funds that are available to Back-end load units have lower investment you at that time. management fees than no-load units. For A similar fund is a fund within the same more information, see Fees and expenses. investment fund category that has a comparable investment objective and the same How we value investment fund units or lower investment management fee. The Generally, we value our units at the close of exchange of your units from one investment business on each day the Stock Exchange fund to another in a non-registered policy may is open for business. We have the right to change produce a taxable capital gain or loss. For how often we value our units. We refer to any day information about tax implications, see Income that we value units as a valuation day. We’ll tell you tax considerations. in writing 60 days before we change the frequency If we do not offer a similar investment fund, that we value the units. For more information, see you may have the right to redeem the Fundamental changes to the investment funds. investment fund units without incurring a When we value units, we calculate the unit value by redemption charge or similar fee provided you dividing the total market value of that class of the advise us at least five business days prior to fund by the number of units in that class of the the change happening. We will advise you if fund. The market value of a class of a fund is the this applies to you. Any redemption of units total market value of the assets in that class of the from a non-registered policy may produce a fund, less investment management fees and other taxable capital gain or loss. For information expenses attributed to that class. For more about tax implications, see Income tax information, see Fees and expenses. considerations. During the transition period When we calculate the market value of an asset between the announcement and the effective held in an investment fund, we use the closing price date of the fundamental change, you will not of that asset. If a closing price is not available, we’ll be permitted to allocate premiums to or determine the fair market value of the asset. exchange into the affected fund unless you agree to waive your rights under the The value of investment fund units is not fundamental change provision for that guaranteed because it fluctuates with the particular fundamental change. market value of the assets in the investment fund. When an investment fund invests in an underlying mutual fund, an increase in the investment management fee of the underlying mutual fund that also results in an increase in the investment management fee of the investment fund would be treated as a fundamental change.

8 Allocating premiums, We have the right to limit purchases of investment funds. We may also refuse to redeeming, and accept requests to allocate premiums to investment funds. exchanging How to redeem investment fund units investment fund units When you request money from your plan it must come from the daily interest account, You can make a request to allocate your premium which means you may first have to redeem to a fund, redeem or exchange units at any time. units and transfer the proceeds to the daily However, we only process allocations, interest account. Upon request and subject to redemptions or exchanges on valuation days. our administration rules you can redeem If we receive your request to allocate your premium investment funds on any valuation day. You to a fund, redeem or exchange units at our can also set up an automatic monthly transfer administrative office in London, or from one or more investment funds to your , Quebec before 3:58 p.m. eastern time or daily interest account. before the Toronto Stock Exchange closes, You must keep a minimum of $300 in units. If whichever is earlier, on a valuation day, we’ll you have less than $300 in units, we may process the request on that day using that day’s require that you redeem them and transfer the unit value. If we receive your request after that money to the daily interest account. time, we’ll process it on the next valuation day using that day’s unit value. For more information, When you redeem investment fund units, see How we value investment fund units. the value of those units is not guaranteed because it fluctuates with the market value When you ask us to allocate your premium to a of the assets in the investment fund. fund, redeem or exchange units, your instructions must be complete and, in a manner, acceptable to We will charge a short-term trading fee on an us, otherwise we will not be able to complete the redemption when the units to be redeemed transaction for you. have not been held in the investment fund for the applicable period of time. For more We have the right to refuse any premium allocated information, see Short-term trading. to your plan. We also have the right to change any minimum amounts that are given in this information There may be income tax consequences folder without notice. if you redeem units in a non-registered plan. For more information, please see If you choose to make a redemption, this will Your income tax considerations. reduce the amount available for annuity payments. For more information, see When your policy You will have to pay early redemption fees matures. when you redeem back-end load units. Back- end load units older than seven years may be How to allocate your premium redeemed without an early redemption fee. For more information, see Early redemption fees for to investment fund units back-end load units. You can allocate your premium to a fund by transferring all or part of the value of the daily The value of your guarantee will be reduced interest account to investment funds. You can also when you redeem units. For more set up an automatic monthly transfer of money from information, see Examples of how redeeming your daily interest account to investment funds. In units affects the basic amount and reduces the both cases, the minimum amount you can currently guaranteed value. transfer is $50. How to exchange investment fund units When you transfer money from the daily interest account to investment funds, we allocate units to Upon request and subject to our then-current your plan. We determine the number of units to administrative rules you can exchange units of allocate by dividing the amount of money you one fund in your plan for units of another transfer by the unit value of the class of the fund at investment fund. You can also set up an the time of the transfer. For more information, automatic monthly exchange. In both cases, the please see How we value investment fund units. minimum amount you can currently exchange is $50.

9 When you exchange units, you’re redeeming units We will charge a short-term trading fee of up to of one or more funds and allocating their value to two per cent of the amount exchanged or units of other funds. redeemed if you allocate premiums to an investment fund for less than 90 consecutive If you set up an automatic exchange between days. investment funds and an automatic exchange between other investment options in your plan, we The fee is subject to change. This right is not process the automatic exchange between affected by the fact that we may have waived it investment funds first. at any time previously. We reserve the right to increase the period of time a premium must We will charge a short-term trading fee on an remain in an investment fund from 90 exchange when the units to be exchanged have consecutive days to up to 365 consecutive not been held in the investment fund for the days. applicable period of time. For more information, see Short-term trading. We will give you written notice of our intent to increase the time period at least 60 days in When you exchange investment fund units, the advance. Our notice to you will specify the value of those units is not guaranteed because affected investment fund(s) and the new period it fluctuates with the market value of the assets of time. We will send the notice to your most in the investment fund. recent address on our records for this policy. There may be income tax consequences if you exchange units within a non-registered plan. For When the redemption of your units more information, please see Your income tax may be delayed considerations. Under unusual circumstances, we may have to There are no early redemption fees when delay your redemption of units or postpone the you exchange units. date of a transfer or payment. This may happen if: Under unusual circumstances, we may have to delay your exchange of units if we’ve had to delay • Normal trading is suspended on a stock the redemption of any units. For more information, exchange on which the investment fund has please see When the redemption of your units may a significant percentage of its assets, or be delayed. • We believe it’s not practical to dispose of The value of your guarantee will not be reduced investments held in an investment fund or when you exchange units. that it would be unfair to other unitholders During such a delay, we’ll administer the Short-term trading redemption of units according to the applicable rules and laws and in a manner that we Using investment funds to time the market or consider fair. We may have to wait until there trading on a frequent basis is not consistent with a are enough assets in the fund that can be long-term investment approach based on financial easily converted to cash. If there are more planning principles. In order to limit such activities, requests to redeem units than we can we will charge a short-term trading fee as outlined accommodate, we’ll redeem as many units as below. we think is appropriate and allocate the The short-term trading fee is retained in the proceeds proportionally among the investors investment fund as compensation for the costs who asked to redeem units. We’ll redeem any associated with the switch or redemption remaining units as soon as we can. request. We may take additional actions as we consider appropriate to prevent further similar activity by you. These actions may include the delivery of a warning, placing you on a watch list to monitor activity, declining to accept allocations to, and exchange and redemption requests from, the investment funds, delay trades by one valuation day and suspend trading under the policy. We reserve the right to change our then-current administrative practices or introduce new ones when we determine it is appropriate.

10 What happens to your plan When your plan matures on the maturity date Maturity date On the maturity date of your plan, we will redeem all units and transfer the value to the Most plans end – or mature – at a certain time. The daily interest account. If your plan was a non- maturity date varies depending on the type of plan registered plan, you may have to pay tax as a you have. In some cases, you can select an earlier result. maturity date. For RRSP plans (except RRSPs for which you For a non-registered plan, the automatic maturity first allocated a premium to the investment date is Dec. 31 of the year the annuitant turns 100. funds when the annuitant is age 60 or older), You may also select an earlier maturity date as non-registered plans and RRIFs issued to long as the date is: residents of Quebec, if you do not indicate a • After the annuitant turns 70 preference, following the maturity date we will commence life annuity payments. The annuity • Before Dec. 31 of the year the annuitant turns payments are conditional on the annuitant 100 being alive and will be in equal annual or more • At least 15 years after the later of: frequent periodic amounts. We may require − The date you first held investment funds in evidence that the person is living when the your plan payment becomes due. − The date you asked to change the Premiums will not be accepted under the policy maturity date after the annuity payments commence. We will For an RRSP, the automatic maturity date is Dec. make payments for as long as the annuitant 31 of the year the annuitant turns the age lives. If the annuitant dies within 10 years of stipulated by the Income Tax Act (Canada), when the annuity payments commenced, the currently age 71. You may also select an earlier remaining guaranteed payments will go to the maturity date between Sept. 1 and Dec. 31 of the beneficiary. If there is no beneficiary, we’ll year the annuitant turns 71. make the payments to you (as the policyowner) or to your estate. You may have The maturity date for a LIF depends on the to pay tax on the annuity payments. Payments jurisdiction that governs your LIF. Some are not commutable during the annuitant’s jurisdictions require that your LIF be converted to a lifetime. life annuity. If your LIF requires you to receive payments from a life annuity, the maturity date will If you first allocated a premium to an be Dec. 31 of the year stipulated in the regulations investment fund in an RRSP when the governing the LIF. annuitant is age 60 or older and you do not indicate a preference for another type of For RRIFs, PRIFs, LRIFs, RLIFs or LIFs, which annuity then offered by us, we’ll commence are not required to be annuitized under applicable payments on a RRIF basis. pension legislation, there is no maturity date. For RRIF policies issued to Quebec residents, the If on the issue date of the RRSP or non- maturity date is Dec. 31 of the year the annuitant registered plan, the policyowner is not a turns age 100. resident of Quebec, the amount of the annuity payments will be determined using the annuity Over time, regulators may change the rules rate in effect when the annuity payments that govern LIFs. We will change the terms of commence. your LIF in accordance with any change in the regulations. If on the issue date of the RRSP, RRIF or non- registered plan, the policyowner is a resident of Quebec, the amount of the annuity payments will be determined by the greater of the annuity rate in effect when the annuity payments commence and the rate established in the policy.

11 For the following plans, the basic maturity Basic guaranteed benefits guarantee is guaranteed to be not less than 75 per cent of the basic amount: All plans have two types of basic guaranteed benefits: the basic maturity guarantee and the • Non-registered plans if you first basic death benefit guarantee. Both basic allocated premiums to the investment guaranteed benefits are included at no additional funds 15 years or more before the cost and apply to the investment funds you hold in maturity of the plan your plan, regardless of the type of plan you own. • RRSPs if you first allocate a premium However, these basic guaranteed benefits only to the investment fund option prior to apply if you first held investment funds in your plan the annuitant attaining age 60 after Oct. 25, 1999. If you held investment funds in • RRIFs issued to a Quebec resident your plan before Oct. 25, 1999, please refer to your • LIFs (which have a maturity date) if you contract for more information about your first allocated premiums to the investment guaranteed benefits. funds 10 years or more before the maturity Before the maturity date or the death of the date of the LIF insured person, the value of investment fund There is no basic maturity guarantee for any units is not guaranteed because it fluctuates with RRIF, PRIF, LRIF, RLIF or LIF, which does not the market value of the assets in the investment have a maturity date. fund. If you first allocated premiums to the investment funds in an RRSP when the Basic amount annuitant is age 60 or older, there is no The basic amount is used to calculate the value of maturity guarantee unless the value of the units both basic guaranteed benefits. In general, the of the investment funds are paid out on a RRIF basic amount is: basis following the maturity date of the RRSP. • The total of all amounts allocated to units The automatic maturity date of the RRSP is Dec. 31 in the year you attain age 71. If the • Minus a proportional reduction for any value of the units of the investments funds are units redeemed paid out on a RRIF basis, the maturity To calculate the proportional reduction for any guarantee applies on Dec. 31 of the year you units redeemed, we use the following formula: attain age 80. For such a RRIF, the basic maturity value is guaranteed to be not less than A x B ÷ C = reduction in the basic amount when: 75 per cent of: • The total of all premiums allocated A is the basic amount before the redemption to the investment funds in the RRSP B is the value of the units redeemed • Minus a proportional reduction for any C is the market value of the investment funds units redeemed from both the RRSP before the redemption and the RRIF If early redemption fees, short-term trading fees or We calculate this proportional reduction the other charges apply, they are included as part of same way we calculate the proportional the amount of units redeemed. For more reduction for the basic amount. information, see Fees and expenses paid directly by you. Basic death benefit guarantee The basic amount does not include exchanges We make a one-time, lump-sum payment of the between funds. basic death benefit if the last annuitant dies before your plan matures. If we receive Basic maturity guarantee satisfactory proof of the last annuitant’s death at our administrative office in London, Ontario On the maturity date, we’ll pay you the greater of: or Montreal, Quebec before 3:58 • The market value of all your units less any p.m. eastern time on a valuation day, we’ll early redemption fees (for more information, calculate and process the payment on and as of see Early redemption fees for back-end load that day. If we receive the proof after that time, units), or we’ll calculate and process it on and as of the • The basic maturity guarantee of your plan valuation day after we receive the proof. For based on the basic amount more information about valuation days, see 12 How we value investment fund units. Also, Let’s also assume that on July 1, 2023, you see When the redemption of your units may redeem units of the Canadian Equity (GWLIM) be delayed. for $4,950. We make this payment to the beneficiary of the If the market value is greater than the basic plan. If there is no beneficiary, we make the amount. payment to you (as the policyowner) or to your estate. Let’s assume that on July 1, 2023, before you redeem the units, the market value of your The basic death benefit is the greater of: Canadian Equity (GWLIM) units is $22,000. • The market value of all units allocated Your basic amount would be reduced to investment funds, or according to the formula: • The basic death benefit guarantee, which is A x B ÷ C = reduction in the basic amount when: 75 per cent of the basic amount and is determined for each plan A is the basic amount before the redemption ($20,000) We do not deduct early redemption fees from the basic death benefit. B is the value of the units redeemed ($4,950) If you have a RRIF and your spouse or common- C is the market value of the investment funds law partner is the beneficiary, instead of receiving before the redemption ($22,000) a one-time, lump-sum payment, you may choose $20,000 x $4,950 ÷ $22,000 = $4,500 to have your spouse or common-law partner become the policyowner and annuitant of the plan Your plan would and continue to receive the regular income now have the payments. In this case, we will pay the death following values: $20,000 – $4,500 = $15,500 benefit on the death of the spouse or common-law Basic amount: partner, even if, on the death of the first annuitant, we increased the value of the plan to equal the Basic maturity $15,500 x 75% = $11,625 death benefit guarantee applicable on the death of guarantee: the first annuitant. Basic death benefit Once your plan matures, the basic death benefit guarantee: $15,500 x 75% = $11,625 guarantee no longer applies. If the market value is less than the basic amount. Examples of how redeeming units Let’s assume that on July 1, 2023, before you affects the basic amount and reduces redeem the units, the market value of your Canadian Equity (GWLIM) units is $18,000. the guaranteed value Your basic amount would be reduced Let’s assume you allocated the following according to the formula: premiums to the investment fund: A x B ÷ C = reduction in the basic amount when: Date Investment Amount you Fund allocated to A is the basic amount before the redemption the investment ($20,000) fund B is the value of the units redeemed ($4,950) July 1, 2021 Canadian $10,000 C is the market value of the investment funds Equity (GWLIM) before the redemption ($18,000) July 1, 2022 Canadian $10,000 Equity (GWLIM) $20,000 x $4,950 ÷ $18,000 = $5,500 Your plan would now have the following values: After the second premium allocation, your policy will have the following values: Basic amount: $20,000 – $5,500 = $14,500 Basic amount: $20,000 Basic maturity Basic maturity $14,500 x 75% = $10,875 $20,000 x 75% = $15,000 guarantee: guarantee:

Basic death $20,000 x 75% = $15,000 Basic death benefit benefit guarantee: guarantee: $14,500 x 75% = $10,875

13 When the basic guaranteed benefits end The updated MER is published each year in the audited financial statements, which are These benefits end on the earlier of one of available on or about April 30 of each year. For the following dates: more information on how to obtain these • The maturity date, once we’ve paid the statements, see Requests for Fund Facts, basic maturity benefit, or financial statements and other documents. • The date the last annuitant dies, once we’ve Investment management fees paid the basic death benefit An investment management fee, which is a percentage of the market value of each Fees and expenses investment fund plus applicable taxes, is deducted from each investment fund on a This section explains the fees and expenses you valuation day and paid to us before we pay to us for managing the investment fund and calculate that fund’s unit value. The amount of paying for the guarantees (see Fees and expenses the fee varies depending on the fund and paid directly by the investment fund). whether or not the units are no-load or back- end load units. The current investment fees are The total cost of investing in an investment fund shown in the Annual investment management (known as the management expense ratio or MER) fee by fund, which are available in the Fund is the sum of the investment management fee and Facts booklet. the expenses to operate the investment fund. This is further explained below, but in order to find out Back-end load units have lower investment how much each investment fund will cost you to management fees than no-load units, but an hold in your policy, you want to look at the MER. early redemption fee may apply. For more The MERs of each investment fund available under information, see No-load and back-end load the policy are provided on each of the Fund Facts, units and Early redemption fees for back-end which is available in the Fund Facts booklet. load units. For example, if you selected to hold no-load units When an investment fund invests in an of an investment fund with a MER of 2.90 per cent underlying fund, there is no duplication of you would pay a MER of 2.90 per cent. investment management fees. See Fund of funds. You may also have to pay other fees and expenses as described under Fees and expenses paid Operating expenses directly by you, but these are generally costs that In addition to investment management fees, depend on actions taken by you, and will not be we charge other expenses to the investment imposed unless you do something specific (for funds. These expenses are for the operation example, redeeming your units prematurely), or of the funds and your plan. They include request a specific additional service (for example, legal, safekeeping, brokerage, administration extra copies of annual statements). and audit fees and taxes. These expenses vary from year to year and from fund to fund. Fees and expenses paid by We deduct these other expenses, plus the investment fund applicable taxes, from each investment fund on a valuation day before we calculate that Management expense ratio (MER) fund’s unit value. The MER is made up of the investment These operating expenses are the same for management fee and operating expenses and both classes of investment fund units: no- includes a trailing commission. The MER is load and back- end load. expressed as an annualized percentage of the investment fund’s average net assets for the year. Fund of funds You do not directly pay the MER. The investment Where the investment funds invest in an management fee and operating expenses are paid underlying fund, the fees and expenses from the investment fund before the unit value of an payable in connection with the management, investment fund is calculated. operation and administration of the underlying fund are in addition to those payable by the The MER of an investment fund is subject to investment fund. As a result, the investment change without notice. The current MER is found fund pays its own fees and expenses and its on the Fund Facts, which is available in the Fund proportionate share of the fees and expenses Facts booklet. of the underlying fund; accordingly, this is

14 reflected in the total investment daily interest account to back-end load units management fee and management expense throughout that year. Each year after that, the free ratio charged by the investment fund. redemption is based on the market value of your However, there will be no duplication in the back-end load units on Jan. 1 of that year. payment of investment management fees in If you redeem all your units while early such circumstances. redemption fees still apply, you are not entitled Fees and expenses paid directly by you to the free redemption and you will have to pay early redemption fees for any units you already You may have to pay the following fees and redeemed under the free redemption. The early expenses directly when you invest in a policy: redemption fee in this circumstance is a • Early redemption fee for back-end load units specified percentage of the amount transferred • Charge for changing the amount or to the back-end load investment fund option frequency of your scheduled periodic income and declines over time. payments If you make a partial redemption from your • Charge for duplicate RRSP receipts and tax back-end load units that is more than the free slips redemption, you may have to pay early • Policy research fee redemption fees on the excess amount. The early redemption fee for partial redemptions is a • Short-term trading fee percentage of the amount being redeemed • Returned cheque fee above the free redemption amount and declines • Cheque processing and courier fee over time. This table shows how the amount of the early redemption fees decreases the longer These fees and expenses are explained in more the units are allocated to your policy. detail later. Number of calendar Early redemption fee You do not pay for the following services: years you’ve held • Establishing non-registered or registered your units when you policies redeem them • Pre-authorized payment agreement (PPA) 1 4.50% • Scheduled periodic income payment 2 4.25% • Exchanges between investment funds 3 3.90% unless you have been in the investment 4 3.50% fund for less than the applicable period 5 3.00% (for more information, see Short- term trading) 6 2.35% • We reserve the right to charge fees for 7 1.50% additional services from time to time and to more than 7 0.00% change the amount or the nature of the fees and expenses paid by you at any time. Early redemption fees are calculated for each fund separately. To reduce the amount of early Early redemption fees for back-end load units redemption fees that you have to pay, the back- You may have to pay early redemption fees if end load units you have held the longest will be you redeem back-end load units of an redeemed first. investment fund less than seven years after you We do not deduct early redemption fees when allocated your premium to the fund. we pay the basic death benefit. Each year, you may redeem a portion of your back- We have the right to change the amount or the end load units without having to pay an early nature of the early redemption fees at any time. redemption fee. This is called a free redemption. If we do, we’ll tell you in writing 60 days before The amount of the free redemption varies we make the change. depending on the type of plan you have. For non- registered plans and RRSPs, the free redemption is For more information about redeeming units, 10 per cent of the market value of your back-end see How to redeem investment fund units. load units. For RRIFs, it is 20 per cent of the market When you redeem investment fund units, the value of your back-end load units. During the first value of those units is not guaranteed because calendar year your plan is open, the free redemption it fluctuates with the market value of the assets is based on the amount you transferred from the in the investment fund.

15 Charge for changing the amount or frequency of your scheduled periodic income payments Your income tax We may charge up to $60 if you change the considerations amount or frequency of your scheduled periodic income payments more than once per year. This is a general summary of income tax considerations for Canadian residents. It is Charge for duplicate RRSP receipts or tax slips based on the current Income Tax Act We will give you one duplicate RRSP receipt or a (Canada) and does not take into account any tax slip for the current tax year without charge, if provincial tax laws. The summary does not you ask for it. We may charge $25 for duplicates of include all possible tax considerations. RRSP receipts and tax slips issued in all prior years. The taxation of certain benefits available with these annuities is not certain at this time. You Policy research fee are responsible for the proper reporting of all We may charge up to $15 per year of policy history taxable income and payment of all related or $35 per hour for researching your policy. You will taxes. This summary is not intended to offer be advised of the fee before the research begins. you tax advice.

Short-term trading fee Consult your tax advisor about the tax We may charge a short-term trading fee of up to two treatment of these annuities for your per cent of the amount exchanged or redeemed if personal circumstances. you invest in a fund for less than the applicable period. Tax status of the investment funds Returned cheque fee The investment funds are not separate legal entities. They fall under the definition of If your pre-authorized payment is returned by your segregated funds in the Income Tax Act financial institution, we may charge up to $20 to (Canada). For tax purposes, our investment cover the cost of our processing. funds are deemed to be trusts that are separate Cheque processing and courier fee entities from Canada Life. The assets of the investment funds are kept separate from our You are allowed one partial redemption each general assets. calendar quarter without a service fee. For any additional requests within the same calendar The investment funds generally do not pay quarter, we may charge up to $20 per redemption income tax because all their income and request. If you request a cheque be sent by courier, realized capital gains and losses are allocated we may charge a courier fee for this service. to you and other investment fund policyowners each year. The investment funds may have foreign tax withheld on income that is earned by their foreign investments.

Non-registered plans For income tax purposes, you must report the following investment income that is allocated to you by the investment funds: • Interest • Dividends from taxable Canadian companies • Taxable capital gains or losses • Foreign source income • Any other investment income When you redeem units of an investment fund you may realize a capital gain or a capital loss, which you must report. Your capital gain (loss) generally will be the amount by which the value of the redemption exceeds (is less than) the

16 adjusted cost base of the units being RRIFs redeemed. A RRIF is registered under the Income Tax Act Any exchange will be treated the same as a (Canada) as a registered retirement income redemption of your units. fund. You can only open a RRIF with money transferred from another plan registered under Death of the policyowner or transfer of ownership the Income Tax Act (Canada). may create capital gains that must be reported. You do not have to report investment income Once a year, we’ll send you tax reporting slips that that is allocated to you by the investment funds show the amounts that must be reported for income in the year that it’s earned. However, all tax purposes. These slips will include the capital redemptions are taxable each year and tax may gain or loss on any redemption or exchange of your be withheld on these payments. Current income units as well as allocations from the investment tax regulations require us to withhold income tax funds. The slips will also include any capital gain or on any amount that is redeemed that is in loss arising from rebalancing of investment fund excess of the minimum income. assets, investment fund discontinuance or an underlying fund substitution. Generally, transfers you make to a RRIF are not tax deductible. The tax information we provide to you will not include adjustments for transactions that generate superficial Payment of top-up maturity or death benefit losses under the Income Tax Act (Canada). To avoid guarantees into the policy are not taxable. All the creation of superficial losses that will be denied amounts withdrawn from the registered policy for income tax purposes, we recommend you avoid are taxable. allocating premiums to a fund within 30 days before or after redeeming units of that same fund. Any premiums allocated to a non-registered plan are not tax deductible. The tax treatment of a top-up maturity or death benefit guarantee payment is not certain at this time. We recommend that you contact your tax advisor regarding the tax treatment of top-up payments in your particular circumstances. We will report top-up guarantee payments based on our understanding of the tax legislation and the Canada Revenue Agency (CRA) assessing practices at that time. You are responsible for any tax liabilities arising from any change in law, interpretation or CRA assessing practices.

RRSPs An RRSP is registered under the Income Tax Act (Canada). Generally, the contributions you make to your RRSP are tax deductible up to an annual limit. You do not have to report investment income that is allocated to you by the investment funds in the year that the income is earned. However, for income tax purposes, you must report any redemption you make, unless the money is transferred directly to another plan registered under the Income Tax Act (Canada). Tax will be withheld on redemptions. Payment of top-up maturity or death benefit guarantees into the policy are not taxable. All amounts withdrawn from the registered policy are taxable except withdrawals under the Home Buyers’ Plan or Lifelong Learning Plan.

17 annual unaudited financial statements will be Administration of the available after Sept. 30 of each year. investment funds In addition, copies of the simplified prospectus, annual information form, unaudited semi-annual financial statements, audited financial Keeping you informed statements, and interim and annual A statement will be sent to you no less than semi- management reports of fund performance of the annually (end of June and December) and it will underlying funds are available upon request give you the following information: from your financial security advisor. • The total number of units, unit value and market value for all the investment funds in Material contracts your Canada Life investment plan on the In the last two years, we haven’t entered or statement date amended any contracts that are material to • Dollar amount and number of units policyowners who invest in our investment transferred to and from each investment funds. fund for the statement period There are no material facts of which Canada • Any income payments made during the Life is aware which relate to the policy that are statement period for a RRIF, PRIF, LRIF, LIF not disclosed in this information folder. or RLIF The auditor of the segregated funds is Deloitte • Any early redemption fees charged for back- & Touche LLP. Deloitte is located at end load units for the statement period 2300-360 Main St, Winnipeg MB R3C 3Z3. Any written communications will be sent to you at the most recent address in our records for the Material transactions policy. Please tell us promptly if your address In the last three years, no director, senior changes. officer, associate or affiliate of Canada Life Please review your statement and advise your has had any material interest, direct or financial security advisor or one of our indirect, in any transaction or in any proposed administrative offices, at the address located on transaction that would materially affect the the inside front cover, if they do not agree with your investment funds. records. Any discrepancies must be reported in We don’t retain a principal broker for buying or writing within 60 days of the statement date. selling the underlying investments in the If we do not hear from you, the statement is investment funds. We usually arrange these deemed to be accurate. investment transactions through many different We may change the frequency or content of brokerage houses. your statement, subject to applicable laws. Assuris protection Requests for Fund Facts, Assuris is a not-for-profit corporation, funded financial statements and other by the life insurance industry that protects documents Canadian policyowners against loss of benefits due to the financial failure of a member The most current Fund Facts for each investment company. Details about the extent of Assuris’s fund is available upon request to Canada Life’s protection are available at assuris.ca or in its administrative office at the address on the inside brochure, which can be obtained from your front cover or by visiting our website at financial security advisor, life insurance canadalife.com. company, [email protected] or by calling 1-866- The most recent annual audited financial statements 878-1225. and semi-annual unaudited financial statements for the investment funds are available upon request from your financial security advisor, by writing to Canada Life’s administrative office at the address on the inside front cover or by visiting our website at canadalife.com. The annual audited financial statements for the current financial year will be made available to you after April 30 and the semi- 18 Investment policy from Canada Life at the address on the inside of the front cover. In addition, you may request We have established investment and lending information about the underlying funds, including policies in relation to our segregated funds we audited financial statements of the underlying funds believe are reasonable and prudent. The by contacting your financial security advisor. investment policies comply with: The sum of a fund’s exposure to any one • Federal and provincial pension benefit corporate entity will not exceed 10 per cent of standards laws the value of the fund at the time of investment. Furthermore, the percentage of securities of • Canadian Life and Health Insurance Association any one corporate issue that may be acquired is Inc. (CLHIA) Guidelines on Individual Variable limited to 10 per cent of each class of securities Insurance Contracts Relating to Segregated of any one corporate issuer, except for any Funds, as amended, and approved by the CLHIA corporate issue guaranteed by any government Board of Directors and the Canadian Council of authority in Canada. This limitation will not Insurance Regulators apply to a segregated fund that is an index • Autorité des marches financiers (AMF) Guideline fund. We will not, in respect of any fund, invest on Individual Variable Insurance Contracts in securities of an issuer for the purpose of Relating to Segregated Funds, as amended, and exercising control or management. approved by Autorité des marches financiers Performance of investment funds and • all as may be amended from time to time. underlying funds The investment funds may achieve their investment The investment objectives and investment objective and/or investment strategies by either strategies of the funds are in many cases investing directly in securities or in units of one or similar to the objectives and strategies of a more underlying funds that have a similar corresponding mutual fund sponsored by our investment objective of the investment fund. If the investment managers. underlying fund is a mutual fund, the fundamental Although the funds have these similar investment objective of the mutual fund cannot be objectives and strategies, and in most cases changed unless approved by the mutual fund will have investment portfolios managed by the unitholders. If such a change is approved, we will same individuals, the performance of the give you notice of the change. mutual funds and the corresponding We may update an investment fund’s investment funds will not be identical. investment strategy, including the removal or This result occurs because not all of the substitution of underlying funds, without notice investments of the two groups of funds will be to you. the same in all respects, the investments will be The earnings of each investment fund are reinvested acquired at different times, in different amounts in the same fund according to its investment and at different prices, and each fund will have objectives and investment strategies. When the fund different levels of purchases and redemptions invests, it doesn’t distinguish between capital and and different pricing structures necessitating reinvested earnings. The investment funds may lend different portfolio transactions. securities in a manner that is prudent, in the interest of the investment fund, and in compliance with any applicable laws. The Real Estate Fund (GWLRA) is the only fund that may borrow to buy securities. For more information, about the Real Estate Fund (GWLRA), see its Fund Facts page in the Funds Facts booklet. The other investment funds do not borrow money except for the purpose of funding redemptions (and only to the extent permitted by applicable regulatory requirements). For a summary of an investment fund’s investment policy, see the Fund Facts booklet. A detailed description of each investment fund’s investment objective and strategies is available upon request

19 • located at Investment managers 180 Queen St W, Toronto ON M5V 3K1 We have the right to appoint or change investment Mackenzie Investments is the brand for managers to provide investment management, investment management activities investment advisory and related services necessary undertaken by Mackenzie Financial for the investment and management of investment Corporation. fund property. We will advise you of any change to • Canada ULC an investment manager. c/o Legal Department located at 180 Queen St W, Toronto ON M5V 3K1 or We currently retain the following investment One Post Office Square, , managers for our investment funds. Massachusetts, 02109. • located at AGF Investments Inc. • Setanta Asset Management Limited P.O. Box 50, Suite 3100, Toronto-Dominion located at College Park House, 20 Nassau Bank Tower, Toronto ON M5K 1E9 St, Dublin 2, Ireland • Beutel, Goodman & Company Ltd. located at 2000-20 Eglinton Ave W, GWL Realty Advisors Inc., Setanta Asset P.O. Box 2005, Toronto, ON M4R 1K8 Management Ltd., Canada Life Asset Management, • Bissett Investment Management Investment Managers Limited and Canada located at 3100-350 7th Ave. S.W, Life Investment Management Ltd. are wholly owned Calgary AB T2P 3N9 subsidiaries of The Canada Life Assurance Company. Putnam Investments Canada ULC is a wholly owned • Brandywine Global Investment Management, subsidiary of Great-West Lifeco Inc. The Canada Life LLC located at 8-2929 Arch St, Assurance Company and Mackenzie Investments are Philadelphia, Pennsylvania 19104 members of the Power Corporation group of • Canada Life Asset Management, formerly companies. Policies are in place to avoid any potential Canada Life Investments, located at conflicts of interest. 1-6 Lombard St, London England EC3V 9JU Canada Life Asset Management is the brand Investment manager review process for investment management activities Through our investment manager review undertaken by Canada Life Asset Management process, we regularly review and monitor Limited. investment managers against our standards • Canada Life Investment Management Ltd. and established expectations. Located at 255 Dufferin Ave, These reviews include: London ON N6A 4K1 • Canada Life Investment Management Ltd. A review of performance – absolute and risk- manages their asset allocation mandates adjusted – and the consistency of this through Portfolio Solutions Group, a division of performance relative to their peer group and Canada Life Investment Management Ltd. benchmark. • A review of the investment policies and • CI Global Asset Management located at 20-2 Queen St E, Toronto ON M5C 3G7 procedures of the fund to ensure that the fund objectives, risk tolerances and • GWL Realty Advisors Inc. located at investment constraints are being met. 830-33 Yonge St, Toronto ON M5E 1G4 • A review of qualitative factors such as • Foyston, Gordon & Payne Inc., portfolio turnover and consistency of located at 2600-1 Adelaide St E, style. Toronto ON M5C 2V9 Our review is carried out by our investment • Invesco Canada Ltd., located at manager review committee. This committee 900-5140 Yonge St, Toronto ON M2N 6X7 consists of members of senior management with • Irish Life Investment Managers Limited, a wide variety of business and investment located at Beresford Crt, Beresford Place, qualifications. Dublin 1, Ireland • JPMorgan Asset Management (Canada) Inc. located at Royal Bank Plaza, South Tower, 1800- 200 Bay St, Toronto ON M5J 2J2 or 600-999 W Hastings St, Vancouver, BC V6C 2W2

20 Commodity prices tend to be cyclical and can move Fund risks significantly in short periods of time which will have a direct or indirect impact on the value of the Investment funds hold different types of investments segregated fund. In addition, new discoveries or – stocks, bonds, other funds, cash – depending on changes in government regulations can affect the what the fund invests in. Different kinds of investment price of commodities. funds are subject to different risks. The value of the investment funds will vary from day to day because of Credit risk various factors including changes in interest rates, An issuer of a bond or other fixed-income economic conditions, and market and company news. investment may not be able to pay interest or to As a result, the value of investment fund units may go repay the principal at maturity. The risk of such up and down, and the value of your investment may a failure to pay is known as credit risk. Some have increased or decreased when you redeem it. issuers have more credit risk than others. Issuers with higher credit risk typically pay Although you can never eliminate risk, you can reduce the risk through diversification, which means higher interest rates than interest rates paid by investing in a variety of different investments. You issuers with lower credit risk because higher can achieve diversification by investing in an asset credit risk companies expose investors to a allocation fund or investing in several investment greater risk of loss. Credit risk can increase or decline during the term of the fixed-income funds with different risks. investment. In certain circumstances, an investment fund may suspend redemptions. For more information, see Companies, governments and other entities When the redemption of your units may be that borrow money, and the debt securities delayed. they issue, are assigned credit ratings by specialized rating agencies. The ratings are a On each Fund Facts page the section Who is this measure of credit risk and take into account fund for? can help you decide if the investment fund many factors, including the value of any might be suitable for you. collateral underlying a fixed income investment. Credit ratings are one factor used by the As well, on each Fund Facts page the investments portfolio managers of the segregated funds in funds have been rated as to how risky they are (low making investment decisions. A credit rating to high) in the section How risky is it? This rating, may prove to be wrong, which can lead to where applicable, has been determined using unanticipated losses on fixed- income historical volatility risk as measured by the standard investments. If the market perceives that a deviation of fund performance. Other types of risk, credit risk rating is too high, then the value of both measurable and non-measurable, may exist and the investments may decrease substantially. A an investment fund’s historical volatility may not downgrade in an issuer’s credit rating or other capture all potential risks or be indicative of its future adverse news regarding an issuer can reduce volatility. For example, a fund with a low risk level a security’s market value. would be more appropriate for an investor with a short time horizon and seeking capital preservation. The difference in interest rates between an A fund with a high-risk level would be more issuer’s bond and a government-issued bond appropriate for a long-term investor seeking to grow that are otherwise identical in all respects their capital and can tolerate the up and downs of the except for the credit rating is known as the stock market. These ratings are meant as a general credit spread. Credit spreads widen if the guide only. You should consult with your financial market determines that a higher return is security advisor who can help you determine your necessary to compensate for the increased risk appropriate risk level. of owning a particular fixed-income investment. Below is a summary of various types of risks that may An increase in credit spread after the purchase apply to the investment funds. of a fixed- income investment decreases the value of that investment. Commodity risk Cyber Security Risk An investment fund that invests in energy and natural Due to the widespread use of technology the resource companies such as oil, gas, mining and gold, will be affected by changes in commodity segregated funds and their service providers’ have become potentially more susceptible to prices. operational risks through breaches in cyber security. Cyber security breaches, amongst

21 other things, could allow an unauthorized party • The price of a derivative may not accurately to gain access to proprietary information, reflect the value of the underlying security. customer data, or segregated fund assets, or • Many types of derivative contracts involve cause the segregated fund and/or its service contracts with third parties. The other party providers to suffer data corruption or lose to a derivative contract may not be able to operational functionality. honour its obligations under the contract. In Derivative risk addition, if money has been deposited with a derivatives dealer, the dealer may go A derivative security is a financial instrument that bankrupt and money deposited with the derives its value from an underlying security, such as dealer will be lost. a stock or bond, a currency, or a financial market. It is not a direct investment in the underlying security Emerging markets risk itself. They are used to reduce the risks associated Emerging markets have the risks described with changes in interest rates and exchange rates under foreign currency risk and foreign and to enhance returns. The segregated funds can investment risk. In addition, they are more invest in derivatives for hedging purposes and for likely to experience political, economic and non-hedging purposes. “Hedging” means a social instability and may be subject to transaction or a series of transactions designed to corruption or have lower business standards. offset or reduce a specific risk associated with Instability may result in the expropriation of specific positions held by the Funds in certain assets or restrictions on payment of dividends, investments or groups of investments. When income or proceeds from the sale of a mutual derivatives are used for a non- hedging purpose, it fund’s securities. In addition, accounting and allows the segregated funds to invest indirectly in the auditing standards and practices may be less returns of one or more stocks or an entire index stringent than those of developed countries without actually buying the stock(s) or all the stocks resulting in limited availability of information in the index. relating to a mutual fund’s investments. The segregated funds that invest directly in an Further, emerging market securities are often underlying fund don’t invest directly in derivatives. less liquid and custody and settlement Most of the other segregated funds may use mechanisms in emerging market countries may derivatives for hedging or reducing risk. They may be less developed resulting in delays and the also use derivative instruments for non-hedging incurring of additional costs to execute trades purposes in order to invest indirectly in securities or of securities. financial markets and gain exposure to other Extreme Market Disruptions risk currencies provided that the use of derivative instruments is consistent with the segregated fund’s Certain extreme events, such as natural disasters, investment objectives. The segregated funds may war, civil unrest, terrorist attacks, and public health not use derivatives for leverage. crises like epidemics, pandemics or outbreaks of new infectious diseases or viruses (including, most The use of derivatives carries several risks: recently, the novel coronavirus (COVID-19)) can • When a derivative is used for hedging, if a materially adversely affect a segregated fund’s market assumption is wrong, the segregated fund business, financial condition, liquidity or results of could forego gains that it would have attained if it operations. The current COVID-19 pandemic is had not entered into the hedging arrangement. In significantly impacting the global economy and addition, there is no guarantee that hedging will commodity and financial markets. To date the be effective and that it will eliminate or reduce a COVID-19 pandemic has resulted in a slowdown in loss or exposure that it was designed to hedge. economic activity and extreme volatility in financial markets and commodity prices and has raised the • When a derivative is used for non-hedging prospect of a global recession. Governmental purposes, it may expose the segregated fund to responses to COVID-19 have led to significant volatility and other risks that affect the underlying restrictions on travel, temporary business closures, market. Any losses that the segregated fund may quarantines, global stock market volatility, high incur as a result of investing in derivatives may unemployment, and reduced consumer activity, be greater than if the segregated fund had globally. Public health crises, such as the COVID-19

invested in the underlying security itself. outbreak, can also result in operating, supply chain • A segregated fund may be unable to “close out” a and project development delays that can materially position to achieve the intended result if trading in adversely affect the operations of third parties in a derivative is halted, or if the market for it which a segregated fund has an interest. These becomes illiquid or is subject to trading limits. events could also cause elevated tracking error and

22 increased premiums or discounts to the segregated Some or all of these factors could make a foreign fund’s net asset value. The duration of any business investment more or less volatile than a Canadian disruptions and related financial impact of the investment. COVID-19 outbreak is unknown. It is difficult to predict how a segregated fund may be affected if a Index risk pandemic, such as the COVID-19 outbreak, persists When any investment fund indicates “index” in the for an extended period of time. Similarly, the effects fund name it is considered an index fund. The of terrorist acts (or threats thereof), military action or investment decisions for such an investment fund similar unexpected disruptive events on the are based on the investment fund’s permitted index. economies and securities markets of countries As such, the investment fund may have more of the cannot be predicted. Natural disasters, war and civil net assets of the investment fund invested in one or unrest can also have materially adverse impacts on more issuers than is usually permitted for investment economic enterprises in the impacted countries. All funds. There is a possibility that this could lead to such extreme events may impact the segregated less diversification within the investment fund, and in fund performance. turn less liquidity of the investment fund. It could also mean that the investment fund volatility is higher Foreign currency risk than that of a more diversified investment fund, while The net asset value of a segregated fund is still tracking the volatility of the permitted index. calculated in Canadian dollars. Foreign investments are generally purchased in Interest rate risk currencies other than Canadian dollars. When Interest rate risk is the risk of economic loss caused foreign investments are purchased in a by changes in interest rates. The value of fixed currency other than Canadian dollars, the value income securities will change inversely with a of those foreign investments will be affected by corresponding change in interest rates: as interest changes in the value of the Canadian dollar rates decrease, the value of fixed income securities relative to those currencies. If the Canadian will increase, and as interest rates increase, the dollar rises in value relative to the other value of fixed-income securities will decrease. Fixed currency but the value of the foreign investment income securities with longer terms-to-maturity are otherwise remains constant, the value of the generally more sensitive to interest rate changes investment in Canadian dollars will have fallen. than those of shorter terms-to-maturity. Changing Similarly, if the Canadian dollar has fallen interest rates can also indirectly impact the share relative to the other currency, the value of an prices of equity securities. When interest rates are investment in Canadian dollars will have high, it may cost a company more to fund its increased. operations or pay down existing debt. This can impair a company’s profitability and earnings growth Foreign investment risk potential, which can negatively impact its share price. Foreign investment risk is the risk of financial loss Conversely, lower interest rates can make financing due to investing in foreign markets. The value of the for a company cheaper, which can potentially securities of the investment fund may be affected by increase its earnings growth potential. Interest rates general global economic conditions and specific can also impact the demand for goods and services economic conditions in a particular country. The that a company provides by impacting overall regulatory environment may be less stringent than in economic activity. North America and many of these countries do not Large transaction risk have the same accounting, auditing and reporting standards that apply in North America. The legal Units of the segregated funds may be held by systems of some foreign countries may not large investors, including other segregated adequately protect investors. Some foreign stock funds. These investors may purchase or markets have less trading volume than North redeem large numbers of units of a segregated American markets, making it more difficult to buy or fund at one time. The purchase or redemption sell investments. Trading large orders in foreign of a substantial number of units of a countries may cause the price to fluctuate more than segregated fund may require the portfolio it would in North America. A country may impose manager of the segregated fund to change the withholding or other taxes that could reduce the composition of the portfolio of the fund return on the investment, or it may have foreign significantly or may force the portfolio manager investment or exchange laws that make it difficult to of the fund to buy or sell investments at sell an investment. There may be political or social unfavourable prices, which can affect instability in the countries in which a segregated fund segregated fund’s performance. invests.

23 Legislation risk to be able to pay for the normal amount of Securities, tax, or other regulators may make withdrawal requests in a timely manner. changes to legislation, rules, and administrative However, withdrawals may be suspended practice. Those changes may have an adverse during any period that the investment fund impact on the value of a segregated fund. does not have sufficient cash or readily marketable securities to meet requests for Liquidity risk withdrawals. For more information, see When Liquidity refers to the speed and ease with which an the withdrawal of your units may be delayed. investment can be sold and converted into cash at a The unit value of the Real Estate Fund (GWLRA) will reasonable price. If an investment cannot be quickly vary with changes in the real estate market and in the or easily sold, it is considered illiquid. Some appraised values of the properties the fund holds. investments are illiquid because of legal restrictions, The value of real estate investments can vary with the nature of the investment itself, settlement terms, competition, how attractive the property is to tenants a shortage of buyers or other reasons. In addition, in and the level of maintenance. The timing of the highly volatile markets, investments that were annual appraisal may also affect the value of the fund considered liquid may suddenly and unexpectedly units. become illiquid. Generally, investments with lower The Real Estate Fund (GWLRA) should be liquidity tend to have more dramatic price changes. considered as a long-term investment and is Certain types of investments, such as high-yield not suitable for investors who may need to bonds, securities of issuers located in emerging quickly convert their holdings to cash. markets or equity securities of small capitalization issuers may be more susceptible to liquidity In the event the Real Estate Fund (GWLRA) is concerns. Difficulty in selling such investments may dissolved, policyowners may receive less than the result in a loss, a reduced return or additional costs unit value because the unit value is based on for a segregated fund. appraisals, which may be greater than the amounts received upon the sale of properties pursuant to a Market risk liquidation. There are risks associated with being invested in the equity and fixed-income markets Short selling risk generally. The market value of a segregated Certain funds may engage in a disciplined amount of fund’s investments will rise and fall based on short selling. A short sale is when a fund borrows specific company developments and broader securities from a lender and then sells the borrowed equity or fixed-income market conditions. securities in the open market. At a later date, the Market value will also vary with changes in the segregated fund repurchases the securities in order general economic and financial conditions in to return them to the lender. countries where the investments are based. In the interim, the segregated fund must pay Real estate risk compensation to the lender for the loan of the securities and provide collateral to the lender for the The Real Estate Fund (GWLRA) is the only loan. Short selling involves certain risks: investment fund that invests directly in real estate. Portfolio funds invest in the Real Estate • There is no assurance that the borrowed Fund (GWLRA). The Real Estate Fund securities will decline in value during the period of (GWLRA) and investment funds that invest in the short sale by more than the compensation the Real Estate Fund (GWLRA) could paid to the lender, and securities sold short may experience a delay when a withdrawal request instead increase in value. is made due to the relative illiquidity of its real • A segregated fund may experience difficulties in estate holdings. purchasing and returning borrowed securities if a Real estate by nature is not a liquid asset. liquid market for the securities does not exist at that time. There is no formal market for trading in real property and very few records are available to • A lender may require a segregated fund to return the public that give terms and conditions of real borrowed securities at any time. This may require property transactions. It may take time to sell the segregated fund to purchase such securities real estate investments at a reasonable price. on the open market at an inopportune time. This could limit the fund’s ability to respond • The lender from whom a segregated fund has quickly to changes in economic or investment borrowed securities, or the prime broker who is conditions. It could also affect the fund’s ability used to facilitate short selling, may become to pay policyowners who want to redeem their insolvent and the segregated fund may lose the units. The fund will keep enough cash on hand

24 collateral it has deposited with the lender and/or Smaller company risk the prime broker. Investing in securities of smaller companies • Where a fund engages in short selling it adheres may be riskier than investing in larger, more to controls and limits that are intended to offset established companies. Securities of smaller these risks by selling short only securities of companies are usually traded less frequently larger issuers for which a liquid market is and in smaller volumes than those of large expected to be maintained and by limiting the companies. Smaller companies may have amount of exposure for short sales. The fund also limited financial resources, and a less deposits collateral only with lenders that meet established market for their securities. certain criteria for creditworthiness and only up to Segregated funds that invest a significant certain limits. Although segregated funds may not portion of their assets in small companies are themselves engage in short selling, they may be subject to smaller company risk and may find it exposed to short selling risk because the more difficult to buy and sell securities and tend underlying funds in which they invest may be to be more volatile than segregated funds that engaged in short selling. focus on larger capitalization companies. Securities lending, repurchase and reverse Sovereign risk repurchase transaction risk Sovereign risk is the risk that a foreign nation will In securities lending transactions, the either fail to meet debt repayments nor honour investment fund lends its portfolio securities to sovereign debt payments. This may be more another party (often called counterparty) in prevalent in foreign markets that experience great exchange for a fee and a form of acceptable political, social or economic instability. It also collateral. In a repurchase transaction, the includes the risk that a foreign central bank will alter investment fund sells its portfolio securities for its foreign exchange regulations, significantly cash while at the same time it assumes an reducing or completely nullifying the value of its obligation to repurchase the same securities for foreign exchange contracts. cash, usually at a lower cost, at a later date. In Underlying fund risk a reverse repurchase transaction, the investment fund buys securities for cash while The portfolio funds and some other investment agreeing to resell the same securities for cash, funds use a fund-of-funds structure whereby the usually at a higher price, at a later date. investment fund invests all of its assets in a secondary or underlying fund. Depending on the Below are some of the general risks size of the investment made by the investment fund associated with entering into securities lending, in an underlying fund and the timing of the repurchase and reverse repurchase withdrawal of this investment, an underlying fund transactions: could be forced to sell significant assets • When entering into securities lending prematurely to accommodate a large withdrawal repurchase and reverse repurchase request. This may negatively impact the unit price of transactions, the investment fund is subject the underlying fund. In addition, the performance of to the credit risk that the counterparty may the segregated fund is directly related to the default under the agreement and the investment performance of the underlying fund(s) investment fund would be forced to make a held by it. claim in order to recover the investment. • When recovering its investment on a default, the investment fund could incur a loss if the value of the securities loaned (in a securities lending transaction) or sold (in a repurchase transaction) has increased in value relative to the value of the collateral held by the investment fund. • Similarly, an investment fund could incur a loss if the value of the portfolio securities it has purchased (in a reverse repurchase transaction) decreases below the amount of cash paid by the investment fund to the counterparty.

25 Fund Facts

Fund Facts provides detailed information for each investment fund under the contract and are available to you in the Fund Facts booklet which is provided with this information folder. You can choose to invest in one or more of these funds.

The individual Fund Facts give you an idea of what each investment fund invests in, how it has performed and what fees or charges may apply.

The description of each investment fund in the individual Fund Facts is not complete without the following description of What if I change my mind? and For more information.

What if I change my mind? You can change your mind and cancel the investment fund contract, the initial pre-authorized chequing premium or any lump-sum premium you apply to the policy by telling us in writing within two business days of the earlier of the date you received confirmation of the transaction or five business days after it was mailed to you.

Your cancellation request has to be in writing, which can include email, fax or letter. The amount returned will be the lesser of the amount of the premium being cancelled or the value of the applicable units acquired on the day we process your request. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid.

For more information The Fund Facts may not contain all the information you need. Please read the contract and the information folder or you may contact us at:

The Canada Life Assurance Company 255 Dufferin Ave London ON N6A 4K1

Web: canadalife.com Email address: [email protected] Phone: 1-888-252-1847 Fax: 1-888-252-1329

26 Glossary of terms The section provides an understanding of some of the terms used in this information folder.

Administrative rules Locked-in plans Internal rules that govern our operations, including When used in reference to an RRSP or pension policies, guidelines, rules and practices of Canada plan, locked-in means an account in which Life, which can change at our sole discretion, without accumulated benefits can only be used to notice. purchase retirement income as specified by pension regulations. Annuitant The annuitant is the individual on whose life the Load maturity and death benefit guarantees are based. Commissions that may be charged when you buy The annuitant can be you, the policyowner, or an or sell certain funds. individual whom you designate. Locked-in retirement account (LIRA) Beneficiary A LIRA, also known as a locked-in RSP, is a The beneficiary is the person, persons or entity registered retirement savings plan from which, appointed to receive any amounts payable after the generally, funds cannot be redeemed except for the last annuitant’s death. If there is no living beneficiary, purchase of a life annuity, LIF, PRIF (where we will pay the death benefit to the policyowner’s available) or a LRIF (where available). A LIRA is estate. only available until the end of the year in which you turn 71 (or such other age as the tax legislation then Capital gains in effect may provide). The profit that results when an asset is sold for more than its purchase price. Locked-in retirement income fund (LRIF) A plan available only in certain provinces for locked-in Capital loss pension funds. These plans work the same way as The loss that results when an asset is sold for less a RIF, but there are maximum and minimum than its purchase price. payment requirements. A LRIF may be converted to a life annuity at any age, but it is not necessary to Diversification do so. Investing in a number of different securities, Management expense ratio (MER) companies, industries or geographic locations to attempt to reduce the risks inherent in investing. The MER is the total of the annual investment management fee and operating expenses paid by Fund Facts the investment fund and is expressed as an annualized percentage of daily average net assets Fund Facts provides detailed information about the during the year. fund. Fund Facts are provided in a separate booklet along with this information folder. Maturity date Guaranteed death benefit The contractual date the policy matures. The minimum amount to be received by a Maturity guarantee beneficiary, or if there is no beneficiary, to the The minimum amount to be received by the policyowner’s estate, upon the death of the policyowner upon maturity of the contract. annuitant. Policyowner Investment management fee The policyowner is the individual who is the legal The amount charged for supervising a fund and owner of the policy. An individual or several administering its operations. This fee is a component individuals may own non-registered policies. of the MER. Registered policies can only be owned by one Life income fund (LIF) or restricted LIF individual. All policy information is sent to the policyowner. A LIF is established by the transfer of locked-in pension assets from a pension plan, a locked-in RRSP, LIRA or RLSP.

27 Prospectus A document that contains a wide variety of information about a mutual fund’s investment objectives, the fund managers, how income is distributed, costs, rights, tax issues and risk factors. It is important to read the prospectus carefully to gain a thorough understanding of the fund.

Retirement income fund (RIF or RRIF) A tax deferral vehicle available to RRSP holders. The plan holder invests the funds in the RRIF and must withdraw a certain amount each year. Income tax would be due on the funds withdrawn.

Retirement savings plan (RSP or RRSP) A vehicle available to individuals to defer tax on a specified amount of money to be used for retirement. The holder invests money in one or more of a variety of investment vehicles which are held in trust under the plan. Income tax on contributions and earnings within the plan is deferred until the money is withdrawn at retirement. RRSPs can be transferred into registered retirement income funds (RRIFs).

Spousal retirement savings plan (Spousal RRSP) An RRSP registered in the name of your spouse (as defined by the Income Tax Act). You deduct the annual contribution from earned income (the maximum is your contribution limit minus your personal RRSP contributions) and your spouse receives the eventual income generated. The Income Tax Act’s definition of spouse includes common-law spouses in certain circumstances. You should note that the amount you may contribute to your own registered savings plan(s) is reduced by the amount you contribute to a spousal RRSP. Moreover, if your spouse makes withdrawals from the plan within three years of deposit, there are tax implications for you.

Underlying fund An underlying fund is a secondary fund in which some of our funds may invest. You do not become a unitholder of the underlying fund.

28 Any amount that is allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

Visit canadalife.com @CanadaLifeCo

Toll-free phone: 1-888-252-1847

Canada Life and design are trademarks of The Canada Life Assurance Company. B2260 – 5/21