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SUN LIFE GLOBAL INVESTMENTS (CANADA) INC. SEMI-ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE for the period ended March 31, 2019 SUN LIFE EXCEL INDIA FUND This page is intentionally left blank SUN LIFE EXCEL INDIA FUND This semi-annual management report of fund performance contains ®nancial highlights but does not contain the complete ®nancial statements of the investment fund. You can request a free copy of the semi-annual ®nancial statements by calling 1-877-344-1434, by sending an email to us at [email protected] or by writing to us at Sun Life Global Investments (Canada) Inc., 1 York Street, Toronto, Ontario, M5J 0B6. Our ®nancial statements are available on our website at www.sunlifeglobalinvestments.com and on SEDAR at www.sedar.com. All of the ®nancial information is calculated based on the pricing Net Asset Valuation for the investment fund, unless otherwise stated. Unitholders may also contact us using one of these methods to request a copy of the investment fund's proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure. MANAGEMENT DISCUSSION OF FUND Recent Developments PERFORMANCE Indian equities witness an increased volatility during the six- month period ending March 2019. Initial 4 months of the period Results of Operations witnessed market sell-off driven by both local macro factors During the period, the net asset value of the Sun Life Excel India and the sharp correction in global equities, however Indian Fund (the “Fund”) increased from $307 million to $313.3 million markets reversed market weakness in Feb 2019 with renewed due to positive performance, partially offset by net foreign inflows and sentiment boost from opinion polls, ahead redemptions during the period. of general elections, tilting further in favour of incumbent party Bharatiya Janata Party (BJP). During the period, the Fund returned 12.6% for Series A units. This result lagged the Fund’s benchmark, the MSCI India Index, The period began with a sell-off in the market driven by fears of returned 13.6%. The performance returns for other series of this tightening liquidity and additional issues in the non-banking Fund are similar to those of Series A except for differences in financial services (NBFC) sector. Global sentiment for equities expense structures. Please refer to the ‘Past Performance’ was volatile given the noise around trade wars and a hawkish section of this report for performance of each series of the Fed. Brent crude oil prices continued to fall in December, down Fund. 9%, after a 21% drop in November and 11% drop in October ending the year at U.S. $53.2 per barrel. The Fund’s underperformance relative to its benchmark can be primarily attributed to stock selection. During the period, stock Global equity markets began 2019 on a positive note as trade selection in the Industrials, Materials and Technology sectors tensions appeared to be abating. Markets were also supported detracted from the Fund’s performance. Within Industrials, by a decisively dovish Fed, offsetting a stronger dollar and weak holding securities like Ashok Leyland, Finolex Cables and Havells global macro growth data. In India, markets reacted positively India contributed to the underperformance as these stocks to the outcome of Union Budget, however mixed earnings underperformed the broader sector. Within Materials, season with disproportionate losses in some large companies allocation to companies like Jindal Steel, Hindalco Industries and and heightened geopolitical tensions between India and Vedanta detracted from the Fund’s performance as they Pakistan led to an increase in market volatility with downward underperformed the Materials sector overall. In the Technology bias. sector, the Fund held Mindtree and Persistent systems that The reporting period on a positive note, with the Indian markets detracted from the Fund’s performance, which also lagged its performing positively in the month of March, driven by broader sector. increased inflows from foreign investors and expectation of The Fund’s underweight allocation to index heavyweight lower policy rates from the Reserve Bank of India. Reliance Industries and as a result underweight allocation to the Energy sector was an opportunity forgone, as Reliance was a Related Party Transactions strong performer during the reporting period. Sun Life Global Investments (Canada) Inc. (the “Manager”) is the Some of the Fund’s underperformance during the period was manager, trustee and portfolio manager of the Fund. offset by the Fund’s stock selection gains in the Consumer The Manager is responsible for the provision of all general Discretionary, Healthcare and Real Estate sectors. The Fund’s management and administrative services required by the Fund overweight allocation to the Financials sector was also a in its day-to-day operations, including providing or arranging for contributor to the Fund’s relative performance as this sector the provision of investment advice, bookkeeping, was a strong performer during the reporting period driven by recordkeeping and other administrative services for the Fund. easing liquidity in the non-banking financial services sector. Semi-Annual MRFP | Sun Life Global Investments p | 1 SUN LIFE EXCEL INDIA FUND As trustee, the Manager holds legal title to the Fund's Financial Highlights investments in trust for unitholders. For its services, the The following tables show selected key financial information Manager receives a management fee that is calculated as a about the Fund and are intended to help you understand the percentage of the average net asset value of the Fund. This fee Fund’s financial performance from the date of inception to is calculated daily and payable monthly. March 31, 2019. As portfolio manager, the Manager is responsible for managing (1) the investment portfolio of the Fund directly or through sub- The Fund's Net Asset Value per Unit ($) advisors. The Manager has retained Birla Sun Life AMC Limited to be the portfolio manager to the India Sub-fund. Sun Life Excel India Fund - Series A 2019 2018 2017 2016 2015 The Manager is an indirect wholly owned subsidiary of Sun Life ($) ($) ($) ($) ($) Financial Inc. Net asset value, beginning of period 36.63 39.56 35.86 33.40 26.97 Increase (decrease) from operations: Fund Administrative Expenses Total revenue - 0.02 - 0.01 0.01 Total expenses (0.37) (0.95) (1.05) (0.92) (0.85) The Manager pays certain operating expenses of the Fund (the Realized gains (losses) for the period 1.57 2.26 0.13 2.10 1.13 “Administration Expenses”) in return for a fixed administration Unrealized gains (losses) for the period 3.13 (2.18) 5.87 1.01 5.94 fee paid to the Manager by the Fund (“Administration Fee”). The Total increase (decrease) from Administration Fee is based on the net asset value of each operations(2) 4.33 (0.85) 4.95 2.20 6.23 series of the Fund. The Administration Expenses include, but are Distributions: not limited to, record keeper fees, accounting, audit and legal From income (excluding dividends) (2.68) (2.12) (1.19) - - fees, bank and interest charges, safekeeping and custodial fees, From dividends - - - - - taxes, administrative and systems costs, costs of reports to From capital gains - - - - - investors, prospectuses and other disclosure documents, Return of capital - - - - - regulatory filing fees (including those incurred by the Manager) Total annual distributions(3) (2.68) (2.12) (1.19) - - and trustee fees for registered plans. The amount of this charge Net asset value, end of period 38.41 36.63 39.56 35.86 33.40 is disclosed as a Fund administrative expense in the Fund’s Statement of Comprehensive Income found in the semi-annual Sun Life Excel India Fund - Series F financial statements (unaudited). 2019 2018 2017 2016 2015 ($) ($) ($) ($) ($) The Fund also pays certain operating expenses directly (the Net asset value, beginning of period 15.32 16.35 14.70 13.54 10.81 “Fund Costs”). Fund Costs include: borrowing costs incurred by Increase (decrease) from operations: the Fund from time to time; costs in connection with portfolio Total revenue - 0.01 0.01 - 0.01 transactions; fees and expenses payable to or in connection Total expenses (0.06) (0.20) (0.25) (0.23) (0.20) with the Fund’s Independent Review Committee (“IRC”); taxes Realized gains (losses) for the period 0.65 0.96 0.03 0.90 0.48 payable by the Fund; and the costs of complying with any new Unrealized gains (losses) for the period 1.31 (1.56) 2.33 0.72 1.09 regulatory or legal requirement imposed on the Fund. The Fund Total increase (decrease) from (2) allocates Fund Costs proportionately among each series of the operations 1.90 (0.79) 2.12 1.39 1.38 Fund. The Fund Costs that are specific to a series of units are Distributions: allocated to that series. These amounts are paid out of the From income (excluding dividends) (1.33) (0.86) (0.53) - - - - - - - assets attributed to each series of units of the Fund, which From dividends From capital gains - - - - - reduces the return you may receive. Return of capital - - - - - Total annual distributions(3) (1.33) (0.86) (0.53) - - Net asset value, end of period 15.94 15.32 16.35 14.70 13.54 p | 2 Semi-Annual MRFP | Sun Life Global Investments SUN LIFE EXCEL INDIA FUND Sun Life Excel India Fund - Series I Sun Life Excel India Fund - Series DB 2019 2018 2017 2016 2015 2019 2018 2017 ($) ($) ($) ($) ($) ($) ($) ($) Net asset value, beginning of period 34.28 37.26 34.01 31.30 24.71 Net asset value, beginning of period 5.10 5.38 5.00 Increase (decrease) from operations:

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