Your Fund Selection Guide

Use this Guide, along with your Enrolment Guide, to understand the investments available through The Christian and Missionary Alliance in Canada Alliance Retiral Fund (ARF) Pension Plan. About this Fund Selection Guide

This Guide explains the funds available to you through your company’s ARF Pension Plan and helps you make investment choices suited to your needs.

Once you’ve chosen your investments, please return to the Enrolment Guide to complete your enrolment.

If you have questions about your investments…

You can contact your plan’s advisor – Reuter Benefits – for assistance with choosing your investments.

( Call toll-free 1-800-666-0142 8 Online at www.myretirement-alliance.com using security code 8215 @ Via e-mail at [email protected]

2 Determine your investor style

To Do! Circle one answer for each question.

Write your score – shown in brackets at the end of each answer – in the box to the right of each question.

Tally the scores you record for each question to get your total.

Your age, the numbers of years remaining until you retire, and how you feel about risk will determine your investor style. Once you know your investor style, you can choose funds for your retirement savings.

Your score 1. What is your investment horizon – when will you need this money? a. Within 3 years (0) b. 3-5 years (3) c. 6-10 years (5) d. 11-15 years (8) e. 15 + years (10)

2. What is your most important investment goal? a. To preserve your money (0) b. To see modest growth in your account (4) c. To see more significant growth in your account (7) d. To earn the highest return possible (10)

3. Please indicate which statement reflects your overall view of managing risk: a. I don’t like risk and I am not prepared to expose my investments to any market fluctuations in order to earn higher long-term returns. (0) b. I am prepared to experience modest short-term market fluctuations in order to generate growth of capital. (2) c. I am prepared to experience average short-term market fluctuations in order to achieve a higher long- term return. (4) d. I want to maximize my long-term returns and am comfortable with significant short-term market fluctuations. (6)

3 4. If you owned an investment that declined by 20% over a short period, what would you do? a. Sell all of the remaining investment (0) b. Sell a portion of the remaining investment (2) c. Hold the investment and sell nothing (4) d. Buy more of the investment (6)

5. If you could increase your chances of improving your investment returns by taking more risk, would you: a. Be unlikely to take more risk (0) b. Be willing to take a little more risk with some of your portfolio (2) c. Be willing to take a lot more risk with some of your portfolio (4) d. Be willing to take a lot more risk with your entire portfolio (6)

25 6. The following picture shows three 22 n (%) model portfolios and the highest and 20 Retur 15 lowest returns each is likely to earn in 15

any given year. Which portfolio would 10 8

you be most likely to hold? 5

a. Portfolio A (0) 0 -1 Best Return 8% -5 Lowest Return -1% -6 -10 b. Portfolio B (3) -12 -15 Best Return 15% Portfolio A Portfolio B Portfolio C Lowest Return -6% c. Portfolio C (6) Best Return 22% Lowest Return -12%

7. After several years of following your retirement plan, you review your progress and determine you are behind schedule and will need to modify your strategy in order to retire at your preferred age. What would you do? a. Keep the same investments you currently hold, but increase your contributions as much as possible. (0) b. Slightly increase your exposure to riskier investments and slightly increase your contributions. (3) c. Move your entire portfolio to riskier investments, hoping to achieve the highest long-term return. (6)

4 8. Which statement best applies to your approach regarding achieving your retirement income goals on time? a. I must achieve my financial goal by my target retirement date. (0) b. I would like to come close to achieving my financial goal by my target retirement date. (2) c. If I have not reached my financial goal by my target retirement date, I have the flexibility to delay my target retirement date. (4) d. I re-evaluate my financial goals and target retirement date regularly and have the flexibility to adjust them to align with the performance of my investments. (6)

Your total score:

Match your score to an investor style below.

If your score is Your investor style is… About your investor style between… 0 – 7 Conservative Protecting your money is your chief concern. You may be approaching retirement, or simply prefer to take a cautious approach to investing and preserve your money. 8 – 22 Moderate You want your money to grow, but are more concerned about protecting it. Retirement may be in your near future or you may prefer to be cautious with your investments and preserve your money. 23 – 37 Balanced You want a balance between growth and security although you will accept some risk to have the potential for higher returns over time. 38 – 48 Growth You want to increase your money and are somewhat comfortable riding the ups and downs of the market in exchange for the possibility of higher returns over the long term. You may have time on your side until you retire. 49 – 56 Aggressive You want to maximize the long-term growth of your retirement savings. You understand the ups and downs of the markets and are comfortable taking a lot of risk to maximize potential returns. You have plenty of time to wait out market cycles until you retire.

My investor style is: ______

5 How to build your own portfolio

Specify the percentage of contributions you want to invest in each fund in the Your To Do!  investment instructions section on the Application form.

Your investor style (from page 5): ______

Find the sample portfolio that matches your investor style.

You can use the sample portfolios as a guideline to help you choose individual funds.

Conservative Investor Profile (0 – 7 Points)

Target Mix 80% Fixed Income + 20% Equity Sample Portfolio for Alliance Retiral Fund Members

Code Investment Account/Fund Name %

1001 Manulife 1 Year Guaranteed Interest Account 15% 1003 Manulife 3 Year Guaranteed Interest Account 15% 4142 Manulife Fidelity Canadian Bond Institutional Fund 40% 5132 Manulife MMF Monthly High Income Fund 20% 7451 Manulife Mawer Canadian Equity Fund 5% 9035 C&MA Foreign Equity Fund 5%

Moderate Investor Profile (8 – 22 Points)

Target Mix 60% Fixed Income + 40% Equity Sample Portfolio for Alliance Retiral Fund Members

Code Investment Account/Fund Name %

1001 Manulife 1 Year Guaranteed Interest Account 10% 1003 Manulife 3 Year Guaranteed Interest Account 10% 4142 Manulife Fidelity Canadian Bond Institutional Fund 25% 5132 Manulife MMF Monthly High Income Fund 35% 7451 Manulife Mawer Canadian Equity Fund 10% 9035 C&MA Foreign Equity Fund 10%

6 Balanced Investor Profile (23 – 37 Points)

Target Mix 40% Fixed Income + 60% Equity Sample Portfolio for Alliance Retiral Fund Members

Code Investment Account/Fund Name %

4142 Manulife Fidelity Canadian Bond Institutional Fund 20% 5132 Manulife MMF Monthly High Income Fund 45% 7451 Manulife Mawer Canadian Equity Fund 20% 9035 C&MA Foreign Equity Fund 15%

Growth Investor Profile (38 – 48 Points)

Target Mix 20% Fixed Income + 80% Equity Sample Portfolio for Alliance Retiral Fund Members

Code Investment Account/Fund Name %

4142 Manulife Fidelity Canadian Bond Institutional Fund 5% 5132 Manulife MMF Monthly High Income Fund 40% 7451 Manulife Mawer Canadian Equity Fund 30% 9035 C&MA Foreign Equity Fund 25%

Aggressive Investor Profile (49 – 56 Points)

Target Mix 10% Fixed Income + 90% Equities Sample Portfolio for Alliance Retiral Fund Members

Code Investment Account/Fund Name %

5132 Manulife MMF Monthly High Income Fund 25% 7451 Manulife Mawer Canadian Equity Fund 40% 9035 C&MA Foreign Equity Fund 35%

7 Notes:

You should consider how your savings outside of this plan are invested. Your other investments may already fulfill some parts of the sample portfolios in the above table. The guidelines provided are only suggestions.

Where to find detailed fund information

A summary and detailed description of the funds – including the investment management fees and historical rates of returns for these funds – available through your group program follows.

You have now finished the fund selection process. Please return to Step four of the Enrolment Guide to complete your enrolment.

8 Rates of Return Overview Rates of Return Overview The Christian and Missionary Alliance in Canada Registered Pension Plan TheRates Christian andof Missionary Return Alliance inOverview Canada Registered Pension Plan The Christian and Missionary Alliance in Canada Registered Pension Plan ● Registered Pension Plan (policy 82152000) The ●ChristianRegistered and Missionary Pension PlanAlliance (policy in Canada 82152000) Registered Pension Plan Market-based● Registered Funds Pension Plan (policy 82152000) RatesMarket-based● Registered of FundsReturn Pension Plan (policy Overview 82152000) RatesMarket-based of FundsReturn Overview TheRates investments of available Return through Overviewyour plan appear here. The investment returns shown below are gross TheMarket-based investments available Funds through your plan appear here. 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These returns, marked in italics, Benchmarkexpenses the returns funds areincur, also which provided will impact to help the you returns. compare fund performance. These returns, marked in italics, Market-basedareMarket-based for comparison Funds purposes only and are not available for investment. areBenchmark for comparison returns purposesare also provided only and to are help not you available compare for fundinvestment. performance. These returns, marked in italics, areBenchmark for comparison returns purposesare also provided only and to are help not you available compare for fundinvestment. performance. These returns, marked in italics, TheThe investments investments available through through your your plan plan appear appear here. here. The Theinvestment investmentRates returns of returns return shown on shown belowJanuary arebelow 31, gross 2018 are gross are for comparison purposes only and are not available for investment.Rates of return on January 31, 2018 returnsreturns for for the the InvestmentInvestment and and do do not not take take into into account account any anyinvestment Annualizedinvestment management Returns(%) management1 fees, taxes fees, or taxes otherAnnual or other returns(%) 2 AnnualizedRates Returns(%) of return1 on January 31, 2018Annual returns(%)2 Fundexpensesexpenses the the fundsfunds incur, which which will will impact impact the the returns. returns. 10 3 4 IMF% YTD 1 2 CodeFund Fund Name 1 Year 2 YearAnnualized3 YearRates Returns(%)4 Year of return5 Year on JanuaryYear10 201831, 20182017Annual 2016returns(%)2015 2014 Code Fund Name IMF%3 YTD4 1 Year 2 Year 3 Year 4 Year 5 Year Year 2018 2017 2016 2015 2014 FIXEDFundBenchmark INCOME returns are also provided to help you compare fund performance.Annualized Returns(%) These returns,1 10 marked in italicsAnnual, returns(%)italics 2 FIXEDCodeBenchmark INCOME returnsFund are Name also provided toIMF% help3 youYTD compare4 1 Year 2fund Year performance.3 Year 4 Year 5 TheseYear Year returns,2018 marked2017 in2016 2015, 2014 4142Fundare forML Fidelitycomparison Cdn Bond purposes Inst only and are0.630 not available-0.7 2.5for investment.2.4 1.3 3.6 3.4 5.110 2.5 2.3 -0.9 10.9 2.4 are for comparison purposes only and are not3 available4 for investment. FIXED4142Code INCOMEML Fidelity Cdn FundBond NameInst 0.630IMF% -0.7YTD 2.51 Year 2.42 Year 1.33 Year 4 3.6Year 5 3.4Year Year5.1 2.52018 2.32017 -0.92016 201510.9 20142.4 BALANCED BALANCEDFIXED4142 INCOMEML Fidelity Cdn Bond Inst 0.630 -0.7 2.5 2.4Rates of1.3 return on3.6 January3.4 31, 20185.1 2.5 2.3 -0.9 10.9 2.4 5132 ML MMF Monthly High Income 0.630 1.1 13.2 10.9 Rates7.4 of return10.6 on11.5 January8.8 31, 201813.2 8.6 0.9 20.6 15.4 4142 ML Fidelity Cdn Bond Inst 0.630 -0.7 2.5Annualized2.4 Returns(%)1.3 1 3.6 3.4 Annual5.1 returns(%)2.5 2.32 -0.9 10.9 2.4 BALANCED5132 ML MMF Monthly High Income 0.630 1.1 13.2 10.9 7.4 10.6 11.5 8.8 13.2 8.6 0.9 20.6 15.4 Annualized Returns(%)1 Annual returns(%)2 CANADIANFund LARGE CAP EQTY 10 BALANCED5132Code ML MMF MonthlyFund High Name Income IMF%0.6303 YTD4 1.11 Year 2 13.2Year 3 Year10.9 4 Year7.4 5 Year10.6Year 11.52018 8.82017 201613.2 20158.6 20140.9 20.6 15.4 CANADIANFund LARGE CAP EQTY 10 7451Code ML Mawer CanadianFund Name Equity IMF%0.6303 YTD-1.14 1 Year8.4 2 Year13.93 Year9.04 Year11.15 Year13.2Year 10.22018 8.42017 19.82016 -0.22015 201417.4 22.1 5132FIXED INCOMEML MMF Monthly High Income 0.630 1.1 13.2 10.9 7.4 10.6 11.5 8.8 13.2 8.6 0.9 20.6 15.4 CANADIAN7451 ML MawerLARGE Canadian CAP EQTY Equity 0.630 -1.1 8.4 13.9 9.0 11.1 13.2 10.2 8.4 19.8 -0.2 17.4 22.1 FIXEDGLOBAL4142 INCOME MLEQUITY Fidelity Cdn Bond Inst 0.630 -0.7 2.5 2.4 1.3 3.6 3.4 5.1 2.5 2.3 -0.9 10.9 2.4 CANADIAN7451 ML MawerLARGE Canadian CAP EQTY Equity 0.630 -1.1 8.4 13.9 9.0 11.1 13.2 10.2 8.4 19.8 -0.2 17.4 22.1 4142GLOBALML EQUITY Fidelity Cdn Bond Inst 0.630 -0.7 2.5 2.4 1.3 3.6 3.4 5.1 2.5 2.3 -0.9 10.9 2.4 9035BALANCEDC&MA Foreign Equity NaN 3.9 23.2 14.1 11.9 15.4 17.7 10.5 23.2 5.7 7.6 26.4 27.3 7451 ML Mawer Canadian Equity 0.630 -1.1 8.4 13.9 9.0 11.1 13.2 10.2 8.4 19.8 -0.2 17.4 22.1 GLOBAL9035 C&MA EQUITY Foreign Equity NaN 3.9 23.2 14.1 11.9 15.4 17.7 10.5 23.2 5.7 7.6 26.4 27.3 BALANCED5132 ML MMF Monthly High Income 0.630 1.1 13.2 10.9 7.4 10.6 11.5 8.8 13.2 8.6 0.9 20.6 15.4 GLOBAL9035 C&MA EQUITY Foreign Equity NaN 3.9 23.2 14.1 11.9 15.4 17.7 10.5 23.2 5.7 7.6 26.4 27.3 5132CANADIANML MMF LARGE Monthly CAP HighEQTY Income 0.630 1.1 13.2 10.9 7.4 10.6 11.5 8.8 13.2 8.6 0.9 20.6 15.4 90357451 C&MAML Mawer Foreign Canadian Equity Equity 0.630 NaN-1.1 3.98.4 13.923.2 9.014.1 11.111.913.2 15.410.2 17.78.4 10.519.8 -0.223.2 17.45.7 22.17.6 26.4 27.3 CANADIAN LARGE CAP EQTY 7451GuaranteedGLOBALML EQUITYMawer Canadian Interest Equity Accounts (GIAs)0.630 -1.1 8.4 13.9 9.0 11.1 13.2 10.2 8.4 19.8 -0.2 17.4 22.1 Guaranteed9035 C&MA Foreign Interest Equity Accounts (GIAs)NaN 3.9 23.2 14.1 11.9 15.4 17.7 10.5 23.2 5.7 7.6 26.4 27.3 GLOBAL EQUITY Guaranteed Interest Accounts (GIAs) 9035The interestC&MA Foreign rates Equity for the GIAs available NaNthrough 3.9your plan23.2 appear14.1 here.11.9 15.4 17.7 10.5 23.2 5.7 7.6 26.4 27.3 TheGuaranteed interest rates Interest for the AccountsGIAs available (GIAs) through your plan appear here.

TheGuaranteed interest rates Interest for the Accounts GIAs available (GIAs) through your plan appear here. These rates are as at January 31, 2018 and subject to change at any time. TheseThe interest rates ratesare as for at theJanuary GIAs 31,available 2018 andthrough subject your to plan change appear at any here. time. Fund Interest GuaranteedTheseCodeTheFund interest rates ratesare Interest as forFund atthe January Accounts GIAsName available 31, 2018(GIAs) through andInterestRate your subject plan appearto change here. at any time. CodeFund Fund Name RateInterest 1001TheseCodeFund rates Manulife are 1as Year atFund GIAJanuary Name 31, 20181.350% andInterest subjectRate to change at any time. 1001 Manulife 1 Year GIA 1.350% CodeFund Fund Name InterestRate 1003These ratesManulife are as 3 Year at January GIA 31, 2018 and 1.625%subject to change at any time. The10031000CodeFund interest ManulifeManulife rates 3 for YearDaily theFund GIA Interest GIAs Name available through1.625%.050%InterestRate your plan appear here. 10051000Code ManulifeManulife 5 YearDailyFund GIA Interest Name 1.775%.050%Rate 10051001Fund ManulifeManulife 5 Year1 Year GIA GIA 1.775%1.350%Interest 1000CodeFund Manulife DailyFund Interest Name Interest.050% Rate These1003 ratesManulife are as 3at Year January GIA 31, 2018 and subject1.625% to change at any time. Code Fund Name Rate 1 10001005 Manulife Daily5 Year Interest GIA .050%1.775% 1000 Manulife Daily Interest .050% 1 Notes: Notes:Fund Interest 1 Code Fund Name Rate 1An annualized return is an average return that has been expressed as an annual (yearly) rate. 1An annualized return is an average return that has been expressed as an annual (yearly) rate. 1 1 1000 Manulife Daily Interest .050% 2 2Notes:An annual return is the return of an investment over a 12 month period. As an example: a one year annual return as at June 30, 2012 would be from July 1, 2011 toAn June annual 30, return2012. is the return of an investment over a 12 month period. As an example: a one year annual return as at June 30, 2012 would be from July 1, 2011 to June 30, 2012. 1 3 An annualized return is an average return that has been expressed as an annual (yearly) rate. 3The Investment Management Fees (IMFs) shown incorporate costs related to investment management services, record-keeping, administration and segregated fundThe operatingInvestment expenses, Management and mayFees include (IMFs) underlyingshown incorporate fund operating costs relatedexpenses. to investment Applicable management taxes are not services, included record-keeping,in the IMFs. administration and segregated 1 fund2An operatingannual return expenses, is the andreturn may of include an investment underlying over fund a operating12 month expenses. period. As Applicable an example: taxes a are one not year included annual in returnthe IMFs. as at June 30, 2012 would be from July 1, 2011 4toYear June to date30, 2012.(YTD) rates of return are not annualized. 4Year to date (YTD) rates of return are not annualized. 3The Investment Management Fees (IMFs) shown incorporate costs related to investment management services, record-keeping, administration and segregated fund operating expenses, and may include underlying fund operating expenses. Applicable taxes are not included in the IMFs. Manulife Return Manulife Return 4Year toThese date (YTD)numbers rates represent of return the are gross not rate annualized. of return of the Manulife fund. These numbers represent the gross rate of return of the Manulife fund.

Additional Historical Information Additional Historical Information InManulife order to provide Return further historical information, we have included the returns of the underlying funds. In order to provide further historical information, we have included the returns of the underlying funds. These numbers represent the gross rate of return of the Manulife fund.

Additional Historical Information In order to provide further historical information, we have included the returns of the underlying funds. 9

2 2

2 How to Read Fund Descriptions

3 2 1 returns over a three-year period. Funds in Balanced code 5132 Volatility meter Low High Manulife MMF Monthly High Income Fund operation for less than three years are rated using

„ Fund (5) „ Benchmark (5) Based on 3 year standard deviation the longest time period available. For a fund or 4 How the underlying fund is invested UNDERLYING FUND -> Manulife Monthly High Income Fund 10 Objective The MMF Monthly High Income Fund seeks to provide investors with a steady flow of Composition monthly income and capital growth through investments in Canadian fixed income and large cap 9 „ Canadian Fixed Income 29.69% securities. The Fund may also invest in units or royalty trusts and real estate investment trusts. underlying fund where return history is less than „ United States Equity 23.97%11 „ Canadian Equity 22.82% Managed by Manulife Asset Management Limited „ Cash & Equivalents 13.60% Fund managers Alan Wicks, Conrad Dabiet, Jonathan Popper „ Foreign Equity 5.03%12 „ United States Fixed Income 0.07% Inception date September 1997 Manulife inception date December 2004 one year, no volatility rating will appear. „ Other 4.82% Total assets $8,493.2 million Underlying fund operating expense (2016) 14 13 In IMF 16 Geographic split 15 „ Canada 67.11% „ United States 24.10% „ Bermuda 3.61% 4. How the underlying fund is invested „ Ireland 1.57% „ Denmark 1.48% „ Sweden 1.21% „ Spain 0.77% Overall past performance „ Other 0.15% This graph shows how a $10,000 investment in this fund would have changed in value over time, The pie chart shows the types of investments in based on gross returns. Gross rates of return are shown before investment management fees 17 Top holdings within the underlying fund have been deducted. 5 (As at June 30, 2017) Manulife Money Fund Series I (MFC) 6.22% the underlying fund and the percentage of the Brookfield Property Partners LP 3.57% Mastercard Inc 3.20% Manulife MMF Monthly High Income Fund - ($20,821) Blend: MMF Monthly High Income - ($15,369) Alimentation Couche Tard Inc 2.84% Constellation Brands Inc 2.68% 20,000 overall portfolio they represent. UnitedHealth Group Inc 2.66% Telus Corp 2.50% 15,000 CI Financial Corp 2.25%

Danaher Corp 2.10% 10,000 Brookfield Asset Management Inc 2.09% 5. Top holdings 5,000

0 Top holdings refers to the individual investments

18 Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD (%) 6 Primary investment process Fund -19.28 24.92 10.98 3.59 9.85 18.34 18.90 2.14 7.92 5.42 in the underlying fund that comprise the largest Fundamental, Bottom-up Benchmark -18.68 22.80 13.42 -1.48 5.89 7.17 9.92 -3.63 13.00 1.39 Equity style and capitalization Annualized compound returns (As at June 30, 2017) 7 Value Core/Blend Growth This table shows the historical annual compound total return of the fund compared with the 19 percentage of the overall portfolio. This is Large benchmark, as outlined in the rate of return expectation below. 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%)  Medium Fund 1.90 7.81 6.87 8.89 11.53 7.59 Small Benchmark -0.54 6.55 4.26 3.45 6.61 4.63 determined using the percentage weighting of the All cap

Target duration and credit quality 8 Investment objective fund’s net market value. 0-5 years 5-10 years 10 + years Over the long term, the Fund is expected to outperform a benchmark portfolio that is comprised of: AAA and AA • 60% S&P/TSX Total Return Index 20  • 40% FTSE TMX Universe Bond Total Return Idx A and BBB below BBB 6. Primary investment process All rates of return are shown before investment management fees or taxes have been deducted. This fund invests primarily outside of North America. Source: Lipper, a Thomson Reuters company Fund managers use a number of approaches to determine the asset allocation of a fund and to select the individual securities it will hold. Some typical approaches: 1. Fund code Each fund is named using a unique code. Identify Fundamental Bottom-up – This approach a specific fund using its fund code when you considers the investment merits of individual select or change your investments. companies.

2. Asset class Quantitative – This technique applies The types of investments (such as Canadian Equity, mathematical research and statistical models to International Equity, Fixed Income) that account identify attractive investments. for the majority of the fund’s holdings. Funds are Index – An indexed portfolio is constructed to colour-coded by asset class. mimic the performance of a specific market index. 3. Volatility meter This approach is also known as passive investing. The volatility meter is a 25-point scale – ranging Multi-manager – A multi-manager fund is from low to high – that illustrates the amount directed by more than one investment manager that a fund’s value is likely to fluctuate. Volatility and often combines different investment styles or is based on the standard deviation of monthly asset classes.

10 7. Equity style and capitalization 14. Manulife inception date This chart displays the primary equity investment The date the fund was first available for purchase style (such as value or growth) the fund manager by Manulife group retirement clients. uses to select securities as well as the ‘market 15. Total assets capitalization’ of securities in the fund. Market The total market value of all the assets invested in capitalization is the total market value of a the underlying fund as of the specified date. particular company’s outstanding shares. In the context of an investment fund, this term refers to 16. Underlying fund operating expenses the size of the companies whose stocks are held Operating expenses are the costs of operating in the fund. This term only applies to funds with and maintaining a fund, and include items such as equity – or stock – holdings. legal, audit, trustee, custodial, and fund valuation fees. Operating expenses are incurred by the 8. Fixed income duration and quality Manulife fund and by the underlying fund (if This chart shows the fund manager’s target applicable). duration (short = 0-5 years, medium = 5-10 years, long = 10+ years) as well as the credit quality 17. Overall past performance of securities in the fund (high = AAA or AA, This graph shows how a $10,000 investment in medium = A or BBB, low = BB or less). the fund changed in value over a specified period, and the value of that investment at the end of 9. Underlying fund the period. It also compares this value with the Market-based investment options available to value of the same investment in a related, broadly- group plans usually invest in existing pooled based index. or mutual funds – these are known as the underlying funds. When a contribution is made to 18. Annual returns a Manulife fund, it’s used to purchase units of the The performance of the fund over various corresponding underlying fund. calendar years. This represents past performance and is not indicative of future results. Unit 10. Objective values fluctuate with the market value of the The fund’s primary investment goal(s) as underlying fund’s assets. Gross rates of return determined by the fund manager. mean the investment performance of the fund 11. Managed by before Investment Management Fees (IMFs) and The investment management firm that oversees applicable taxes are deducted. the fund. An individual who invests in the fund earns a net 12. Fund managers return after fees. IMFs vary by firm and by plan. The lead fund manager(s) responsible for Returns shown here represent results for the the investment decisions regarding the Manulife fund and/or its underlying fund. underlying fund. 19. Annualized compound returns 13. Inception date Returns for a specified period of time expressed as The date the underlying fund was made available an annualized rate. for purchase. 20. Rate of return expectation The benchmark that the performance of the fund manager is measured against.

11 GUARANTEED INTEREST ACCOUNTS VOLATILITY METER

Manulife Guaranteed Interest Accounts

Volatility and risk HOW THESE ACCOUNTS WORK These accounts offer good returns and excellent investment Similar to Guaranteed Investment Certificates (GICs) offered by banks and trust security. Consider these accounts if you are an investor who companies, these accounts guarantee an interest rate from the date of contribution needs guaranteed security for your investment and can until maturity. At maturity, original investments and interest earned will reinvest for commit to investments for a fixed period of time. There is no the same term unless you provide Manulife with different instructions. volatility associated with the return in this account and there When contributions are invested in these accounts, they earn the current interest is minimal risk as this is a guaranteed investment backed by rate at the time of the deposit. That interest is credited to the account monthly and the general assets of Manulife Financial. is compounded annually. Each contribution made to a GIA accumulates for the term selected at the guaranteed rate in effect on the date Manulife’s head office receives the contribution. The GIA operates on a compound interest basis which means the guaranteed interest rate applies to both principal and accumulated interest. The principal and interest are backed by the assets of Manulife Financial.

HOW THE GUARANTEED INTEREST ACCOUNT IS PROTECTED Manulife Financial is a founding member of Assuris. With Assuris, consumers may be entitled to protection against the loss of their savings and retirement incomes if a member financial institution becomes insolvent. You can call Assuris at 1-866-878-1225 for details about maximum coverage guarantees.

12 13 Fixed income code 4142 / FcmiA Volatility meter Low High Manulife Fidelity Canadian Bond Institutional Fund

„ Fund (4) „ Benchmark (4) Based on 3 year standard deviation

How the underlying fund is invested UNDERLYING FUND -> FIAM Canadian Bond Fund

Objective The portfolio’s investment objective is to generate returns that exceed the DEX Universe Composition Bond Index (the “Index”) by investing primarily in a well-diversified portfolio of Canadian dollar- „ Canadian Fixed Income 93.52% denominated debt securities. „ United States Fixed Income 4.05% „ Foreign Fixed Income 1.24% Managed by FIAM LLC „ Cash & Equivalents 0.95% Fund managers Brian Miron, Catriona Martin „ Other 0.24% Inception date July 2002 Manulife inception date February 2014 Total assets $1,864.9 million Underlying fund operating expense (2016) Duration 7.87 0.03247% Bond type „ Corporate Notes/Bonds 55.57% „ Provincial/Municipal Bonds 30.50% „ Govt. Agency Notes/Bonds 8.85% „ MBS 2.42% „ Fixed Income Other 1.15% „ ABS 1.05% „ Other 0.46% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, Bond term based on gross returns. Gross rates of return are shown before investment management „ Less than 1 Year 1.24% fees have been deducted. The shaded returns represent the underlying fund returns prior to the „ 1 to 3 Years 17.74% Manulife Fund’s inception date. „ 3 to 5 Years 16.60% „ 5 to 10 Years 31.05% „ 10 to 20 Years 9.57% Manulife Fidelity Canadian Bond Institutional Fund - ($16,662) „ 20 to 30 Years 18.47% FTSE TMX Universe Bond Index CAD - ($15,778) „ Greater than 30 Years 4.65% FIAM Canadian Bond Trust „ Other 0.68%

Top holdings within the underlying fund 15,000 (As at December 31, 2017) Canada 1.250% 01-Feb-2020 3.35% Government of Ontario 2.850% 02-Jun-2023 2.68% 10,000 Government of Ontario 3.500% 02-Jun-2043 1.61% Can House No1 2.350% 15-Jun-2027 1.59% Government of Ontario 4.200% 02-Jun-2020 1.45% 5,000 Government of Quebec 3.750% 01-Sep-2024 1.26% Alberta Province 2.350% 01-Jun-2025 1.23% 0 Government of Ontario 4.700% 02-Jun-2037 1.17% Canada 2.750% 01-Dec-2048 1.15% Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Canada 3.500% 01-Dec-2045 1.08% (%) Fund 5.10 8.66 7.46 9.57 5.00 -0.87 8.98 3.33 2.43 3.22 Benchmark 6.41 5.41 6.74 9.67 3.60 -1.19 8.79 3.52 1.66 2.52

Annualized compound returns (As at December 31, 2017) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) Fund 2.21 3.22 2.82 2.99 - - Benchmark 2.02 2.52 2.09 2.56 3.01 4.66

Target duration and credit quality Investment objective 0-5 years 5-10 years 10 + years Over the long term, the Fund is expected to outperform the FTSE TMX Universe Bond Index by 50  AAA and AA bps. A and BBB

below BBB

Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Operating expenses are the costs of operating and maintaining a fund, and include items such as legal, audit, trustee, custodial, and fund valuation fees. Operating expenses are incurred by the Segregated Fund and by the Underlying Fund (if applicable). Manulife’s segregated fund operating expenses are included in the Investment Management Fees. Source: Lipper, a Thomson Reuters company

13 Balanced code 5132 Volatility meter Low High Manulife MMF Monthly High Income Fund

„ Fund (4) „ Benchmark (5) Based on 3 year standard deviation

How the underlying fund is invested UNDERLYING FUND -> Manulife Monthly High Income Fund

Objective The MMF Monthly High Income Fund seeks to provide investors with a steady flow of Composition monthly income and capital growth through investments in Canadian fixed income and large cap „ Canadian Fixed Income 33.74% securities. The Fund may also invest in units or royalty trusts and real estate investment trusts. „ Canadian Equity 26.98% „ United States Equity 25.16% Managed by Manulife Asset Management Limited „ Cash & Equivalents 8.92% Fund managers Alan Wicks, Conrad Dabiet, Jonathan Popper „ Foreign Equity 1.95% „ United States Fixed Income 0.05% Inception date September 1997 Manulife inception date December 2004 „ Other 3.20% Total assets $8,480.1 million Underlying fund operating expense (2016) In IMF Geographic split „ Canada 69.76% „ United States 25.31% „ Bermuda 2.76% „ Ireland 1.04% „ Spain 0.70% „ United Kingdom 0.21% „ Other 0.22% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees Top holdings within the underlying fund have been deducted. (As at December 31, 2017) Manulife Money Series I 6.24% Royal Bank of Canada 4.01% Comcast Corp 3.13% Manulife MMF Monthly High Income Fund - ($22,297) Blend: MMF Monthly High Income - ($16,136) Alimentation Couche-Tard Inc 2.97% Brookfield Property Partners LP 2.71% 20,000 Telus Corp 2.65% CVS Health Corp 2.41% 15,000 Brookfield Asset Management Inc 2.24% Constellation Brands Inc 2.18% 10,000 CI Financial Corp 2.08%

5,000

0

Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD (%) Primary investment process Fund -19.28 24.92 10.98 3.59 9.85 18.34 18.90 2.14 7.92 12.89 Fundamental, Bottom-up Benchmark -18.68 22.80 13.42 -1.48 5.89 7.17 9.92 -3.63 13.00 6.46 Equity style and capitalization Annualized compound returns (As at December 31, 2017) Value Core/Blend Growth This table shows the historical annual compound total return of the fund compared with the

Large benchmark, as outlined in the rate of return expectation below. 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%)  Medium Fund 5.35 12.89 10.36 7.55 11.85 8.34 Small Benchmark 3.48 6.46 9.67 5.05 6.43 4.90

All cap

Target duration and credit quality Investment objective 0-5 years 5-10 years 10 + years Over the long term, the Fund is expected to outperform a benchmark portfolio that is comprised of: AAA and AA • 60% S&P/TSX Total Return Index  • 40% FTSE TMX Universe Bond Total Return Idx A and BBB

below BBB

Note: All rates of return are shown before investment management fees or taxes have been deducted. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. Operating expenses are the costs of operating and maintaining a fund, and include items such as legal, audit, trustee, custodial, and fund valuation fees. Operating expenses are incurred by the Segregated Fund and by the Underlying Fund (if applicable). Manulife’s segregated fund operating expenses are included in the Investment Management Fees. Source: Lipper, a Thomson Reuters company

14 15 Balanced code 5132 Canadian Large Cap equity Code 7451 Volatility meter Volatility meter Low High Low High Manulife MMF Monthly High Income Fund Manulife Mawer Canadian Equity Fund

„ Fund (4) „ Benchmark (5) „ Fund (8) „ Benchmark (7) Based on 3 year standard deviation Based on 3 year standard deviation

How the underlying fund is invested UNDERLYING FUND -> Manulife Monthly High Income Fund How the underlying fund is invested UNDERLYING FUND -> Mawer Canadian Equity Pooled Fund

Objective The MMF Monthly High Income Fund seeks to provide investors with a steady flow of Objective The investment objective of the Mawer Canadian Equity Pooled Fund is to achieve above Composition monthly income and capital growth through investments in Canadian fixed income and large cap Composition average long-term returns in securities of Canadian companies by systematically creating a broadly „ Canadian Fixed Income 33.74% securities. The Fund may also invest in units or royalty trusts and real estate investment trusts. „ Canadian Equity 94.00% diversified portfolio of wealth-creating companies bought at discounts to their intrinsic values, by „ Canadian Equity 26.98% „ Cash & Equivalents 4.28% employing a long-term holding period to allow for investor recognition or corporate growth and to „ United States Equity 25.16% Managed by Manulife Asset Management Limited „ United States Equity 1.72% minimize transaction costs. „ Cash & Equivalents 8.92% Fund managers Alan Wicks, Conrad Dabiet, Jonathan Popper „ Foreign Equity 1.95% Managed by Mawer Investment Management Ltd. „ United States Fixed Income 0.05% Inception date September 1997 Manulife inception date December 2004 „ Other 3.20% Total assets $8,480.1 million Underlying fund operating expense (2016) Fund managers James C.E. Hall, Vijay Viswanathan In IMF Inception date February 1999 Manulife inception date December 2009 Equity Industry Total assets $1,938.6 million Underlying fund operating expense (2016) Geographic split „ Financials 36.95% 0.0035% „ Canada 69.76% „ Industrials 19.58% „ United States 25.31% „ Energy 11.37% „ Bermuda 2.76% „ Telecommunication Services 7.52% „ Ireland 1.04% „ Consumer Discretionary 4.96% „ Spain 0.70% „ Consumer Staples 4.58% „ United Kingdom 0.21% „ Real Estate 3.82% „ Other 0.22% Overall past performance „ Other 11.22% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, This graph shows how a $10,000 investment in this fund would have changed in value over time, based on gross returns. Gross rates of return are shown before investment management fees Geographic split based on gross returns. Gross rates of return are shown before investment management Top holdings within the underlying fund have been deducted. „ Canada 98.28% fees have been deducted. The shaded returns represent the underlying fund returns prior to the (As at December 31, 2017) „ United States 1.72% Manulife Fund’s inception date. Manulife Money Series I 6.24% Royal Bank of Canada 4.01% Manulife Mawer Canadian Equity Fund - ($24,030) Comcast Corp 3.13% Manulife MMF Monthly High Income Fund - ($22,297) S&P/TSX Composite TR - ($15,752) Blend: MMF Monthly High Income - ($16,136) Mawer Canadian Equity Pooled Fund Alimentation Couche-Tard Inc 2.97% Brookfield Property Partners LP 2.71% 20,000 Top holdings within the underlying fund Telus Corp 2.65% (As at December 31, 2017) 20,000 CVS Health Corp 2.41% 15,000 Royal Bank of Canada 5.32% Brookfield Asset Management Inc 2.24% Toronto-Dominion Bank 5.23% 15,000 Constellation Brands Inc 2.18% Brookfield Asset Management Inc 4.11% 10,000 CI Financial Corp 2.08% Bank of Nova Scotia 4.06% 10,000 Canadian National Railway Co 3.89% 5,000 5,000 Bank of Montreal 3.40% Manulife Financial Corp 3.29% 0 0 Canadian Pacific Railway Ltd 3.25% Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Rogers Communications Inc 3.11% Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD (%) Toromont Industries Ltd 3.01% (%) Primary investment process Fund -19.28 24.92 10.98 3.59 9.85 18.34 18.90 2.14 7.92 12.89 Fund -28.95 30.73 14.73 1.89 13.84 26.42 17.53 1.00 17.47 10.28 Fundamental, Bottom-up Benchmark -18.68 22.80 13.42 -1.48 5.89 7.17 9.92 -3.63 13.00 6.46 Benchmark -33.00 35.05 17.61 -8.71 7.19 12.99 10.55 -8.32 21.08 9.10 Equity style and capitalization Annualized compound returns (As at December 31, 2017) Annualized compound returns (As at December 31, 2017) Value Core/Blend Growth This table shows the historical annual compound total return of the fund compared with the This table shows the historical annual compound total return of the fund compared with the

Large benchmark, as outlined in the rate of return expectation below. benchmark, as outlined in the rate of return expectation below. 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%)  Medium Fund 5.35 12.89 10.36 7.55 11.85 8.34 Primary investment process Fund 3.97 10.28 13.80 9.37 14.21 - Small Benchmark 3.48 6.46 9.67 5.05 6.43 4.90 Fundamental, Bottom-up Benchmark 4.45 9.10 14.91 6.59 8.63 4.64 All cap Equity style and capitalization Target duration and credit quality Value Core/Blend Growth Investment objective Investment objective 0-5 years 5-10 years 10 + years Over the long term, the Fund is expected to outperform a benchmark portfolio that is comprised of:  Large The Fund is expected to outperform the S&P/TSX Composite Total Return Index annually by 2%. AAA and AA • 60% S&P/TSX Total Return Index Medium  • 40% FTSE TMX Universe Bond Total Return Idx A and BBB Small below BBB All cap

Note: All rates of return are shown before investment management fees or taxes Note: All rates of return are shown before investment management fees or taxes have been deducted. have been deducted. The rate of return is used only to illustrate the effects of the compound growth The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect the future values or returns in the Fund. rate and is not intended to reflect the future values or returns in the Fund. Operating expenses are the costs of operating and maintaining a fund, and Operating expenses are the costs of operating and maintaining a fund, and include items such as legal, audit, trustee, custodial, and fund valuation fees. include items such as legal, audit, trustee, custodial, and fund valuation fees. Operating expenses are incurred by the Segregated Fund and by the Underlying Operating expenses are incurred by the Segregated Fund and by the Underlying Fund (if applicable). Manulife’s segregated fund operating expenses are included Fund (if applicable). Manulife’s segregated fund operating expenses are included in the Investment Management Fees. in the Investment Management Fees. Source: Lipper, a Thomson Reuters company Source: Lipper, a Thomson Reuters company

15 Global Equity Code 9035 Volatility meter Low High C&MA Foreign Equity

„ Fund (11) „ Benchmark (12) Based on 3 year standard deviation How the fund is invested Objective The C&MA Foreign Equity Fund is managed for long-term capital growth by investing in securities of Foreign companies. The Fund is managed on an ethical basis so that there are no investments in companies in the following businesses: tobacco and gambling. Composition Managed by Manulife Financial „ United States Equity 49.35% „ Foreign Equity 46.91% Fund managers David Ragan, Grayson Witcher, Scott Campbell „ Cash & Equivalents 3.74% Inception date December 2006 Total assets $38.1 million

Equity Industry „ Information Technology 21.53% „ Financials 19.89% „ Industrials 14.17% „ Consumer Discretionary 11.91% „ Health Care 10.22% „ Consumer Staples 8.56% „ Materials 7.39% „ Other 6.33% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, Geographic split based on gross returns. Gross rates of return are shown before investment management fees „ United States 49.35% have been deducted. „ United Kingdom 13.35% „ Japan 4.08% „ Canada 3.74% „ China 3.43% „ Ireland 3.27% C&MA Foreign Equity - ($24,789) „ France 3.19% Blend: 50% MSCI EAFE/50% S&P 500 - ($21,727) „ Other 19.59% 25,000 Top holdings (As at December 31, 2017) 20,000 Intertek Group PLC 2.34% Becton Dickinson and Co 2.33% 15,000 Alphabet Inc 2.24% Comcast Corp 2.12% 10,000 Tencent Holdings Ltd 2.09% Marsh & McLennan Companies Inc 2.09% 5,000 Aon PLC 2.03% 0 Mastercard Inc 1.99% Verisk Analytics Inc 1.99% Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD LKQ Corp 1.86% (%) Fund -23.95 13.28 8.44 -1.35 17.46 35.03 16.37 20.12 2.29 18.61 Benchmark -25.62 10.72 6.16 -2.84 14.51 36.71 13.74 19.95 3.56 15.65

Annualized compound returns (As at December 31, 2017) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) Fund 6.18 18.61 10.13 13.36 18.01 9.49 Benchmark 6.01 15.65 9.42 12.82 17.43 8.06

Investment objective Over the long term, the Fund attempts to outperform a benchmark portfolio that is comprised of the following: • 50% MSCI EAFE Index ($ Cdn) • 50% S&P 500 ($Cdn)

All rates of return are shown before investment management fees or taxes have been deducted. This fund invests primarily outside of North America. Source: Lipper, a Thomson Reuters company

16 Global Equity Code 9035 Volatility meter Low High C&MA Foreign Equity

„ Fund (11) „ Benchmark (12) Based on 3 year standard deviation Notes How the fund is invested Objective The C&MA Foreign Equity Fund is managed for long-term capital growth by investing in securities of Foreign companies. The Fund is managed on an ethical basis so that there are no investments in companies in the following businesses: tobacco and gambling. Composition Managed by Manulife Financial „ United States Equity 49.35% „ Foreign Equity 46.91% Fund managers David Ragan, Grayson Witcher, Scott Campbell „ Cash & Equivalents 3.74% Inception date December 2006 Total assets $38.1 million

Equity Industry „ Information Technology 21.53% „ Financials 19.89% „ Industrials 14.17% „ Consumer Discretionary 11.91% „ Health Care 10.22% „ Consumer Staples 8.56% „ Materials 7.39% „ Other 6.33% Overall past performance This graph shows how a $10,000 investment in this fund would have changed in value over time, Geographic split based on gross returns. Gross rates of return are shown before investment management fees „ United States 49.35% have been deducted. „ United Kingdom 13.35% „ Japan 4.08% „ Canada 3.74% „ China 3.43% „ Ireland 3.27% C&MA Foreign Equity - ($24,789) „ France 3.19% Blend: 50% MSCI EAFE/50% S&P 500 - ($21,727) „ Other 19.59% 25,000 Top holdings (As at December 31, 2017) 20,000 Intertek Group PLC 2.34% Becton Dickinson and Co 2.33% 15,000 Alphabet Inc 2.24% Comcast Corp 2.12% 10,000 Tencent Holdings Ltd 2.09% Marsh & McLennan Companies Inc 2.09% 5,000 Aon PLC 2.03% 0 Mastercard Inc 1.99% Verisk Analytics Inc 1.99% Annual returns 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD LKQ Corp 1.86% (%) Fund -23.95 13.28 8.44 -1.35 17.46 35.03 16.37 20.12 2.29 18.61 Benchmark -25.62 10.72 6.16 -2.84 14.51 36.71 13.74 19.95 3.56 15.65

Annualized compound returns (As at December 31, 2017) This table shows the historical annual compound total return of the fund compared with the benchmark, as outlined in the rate of return expectation below. 3 mo (%) 1 year (%) 2 year (%) 3 year (%) 5 year (%) 10 year (%) Fund 6.18 18.61 10.13 13.36 18.01 9.49 Benchmark 6.01 15.65 9.42 12.82 17.43 8.06

Investment objective Over the long term, the Fund attempts to outperform a benchmark portfolio that is comprised of the following: • 50% MSCI EAFE Index ($ Cdn) • 50% S&P 500 ($Cdn)

All rates of return are shown before investment management fees or taxes have been deducted. This fund invests primarily outside of North America. Source: Lipper, a Thomson Reuters company

17 Notes

18 18 19 19 19 Group Retirement Solutions’ group retirement and savings products and services are offered through Manulife (The Manufacturers Life Insurance Company).

Manulife and the block design are service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates under license.

INS4268 C&MA FSG 03/18