Core Plus Bond (PIMCO)

Fund Code: 860 Total net assets: $78.9 million Group Savings Inception date: November 2009 and Retirement

Investment Advisor Commentary PIMCO is a “core-plus” manager. Their goal is to add value by consistently outperforming the benchmark by tapping traditional and non-traditional sectors of the markets, while maintaining overall risk similar to that of the benchmark. Management team composed of several managers Risk factors to which PIMCO is overweight or underweight include: duration; ; sectors of the Canadian , including government bond, provincials and corporate bond; and credit quality. In Objectives of the Fund addition, PIMCO allocates a small portion of its CorePLUS portfolios to out-of-index risk factors comprised • Oriented toward current income of the firm’s best ideas from around the global bond markets, which include international fixed income, currency, Canadian and non-Canadian inflation-linked bond, Canadian and non-Canadian high yield, • Moderate long term capital growth emerging markets, liquidity and volatility strategies. • Conforms to a medium to long term investment horizon Asset mix of the underlying fund Characteristics of the underlying As at June 30, 2021 fund As at June 30, 2021 Investment style Provinces 40.00% Multiple strategies Bond and term Portfolios Corporates 19.00% Average rating - Bonds AA- Investment limits Average term 11.0 years Industrial Alliance Fund Modified duration 8.4 years Foreign bonds Limits Min. Max. 17.00% Average coupon 3.0% Short term 0% 20% Canada Units of the underlying fund 80% 100% 46.00% Short Term and others Underlying fund -22.00% Limits Min. Max. Short term 0% 20% Bond 80% 100%

Risk level

Underlying Fund PIMCO Canada Canadian CorePLUS Bond Trust

Performance of the Industrial Alliance Fund - Gross returns Returns before deduction of management and administration fees Compound returns as at June 30, 2021 Since Performance YTD 1 month 3 months 6 months 1 year 2 years 3 years 4 years 5 years 10 years Nov. 2009 Fund (2.90) 0.98 2.11 (2.90) 0.36 4.33 5.62 4.32 3.61 4.38 4.67 Benchmark index1 (3.46) 0.96 1.66 (3.46) (2.43) 2.60 4.16 3.30 2.64 3.90 Annual returns as at December 31 Performance 20 19 18 17 16 15 14 13 12 11 Fund 11.46 7.91 1.27 2.32 2.42 4.46 8.24 (0.53) 6.45 6.14 Asset mix of the Benchmark index1 8.68 6.87 1.41 2.52 1.66 3.52 8.79 (1.19) 3.60 9.67 Industrial Alliance Fund As at June 30, 2021 Distribution 1 FTSE Canada Universe Bond Index. Please refer to the Legal Notices at the end of this publication for more information about the Index. Short term 0.49% Units of the underlying fund 99.51% 100.00%

Past performance is not a guarantee of future returns.

Quarterly Update | Group Investment Funds Second quarter, ending June 30, 2021 Industrial Alliance Legal Notices

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Quarterly Update | Group Investment Funds Second quarter, ending June 30, 2021 Industrial Alliance