Sun Life Guaranteed Funds (GIFs)

ANNUAL FINANCIAL STATEMENTS

SUN LIFE ASSURANCE COMPANY OF December 31, 2015

Life’s brighter under the sun

Sun Life Assurance Company of Canada is a member of the group of companies. © Sun Life Assurance Company of Canada, 2016. 36D-0092-02-16 Table of Contents

Independent Auditors' Report 3 Sun MFS Income 196 Sun Beutel Goodman Canadian Bond 5 Sun MFS Global Growth 200 Sun BlackRock Canadian Balanced 10 Sun MFS Global Total Return 204 Sun BlackRock Canadian Composite Equity 15 Sun MFS Global Value 209 Sun BlackRock Canadian Equity 20 Sun MFS Global Value Bundle 214 Sun BlackRock Canadian Equity Bundle 25 Sun MFS International Growth 218 Sun BlackRock Cdn Composite Eq Bundle 29 Sun MFS International Growth Bundle 222 Sun BlackRock Cdn Universe Bond 33 Sun MFS International Value 226 Sun Canadian Balanced Bundle 38 Sun MFS International Value Bundle 230 Sun CI Cambridge Canadian Equity 42 Sun MFS Monthly Income 234 Sun CI Cambridge Cdn Allocation 46 Sun MFS US Equity 238 Sun CI Cambridge Global Equity 50 Sun MFS US Equity Bundle 242 Sun CI Cambridge/MFS Canadian Bundle 54 Sun MFS US Growth 246 Sun CI Cambridge/MFS Global Bundle 58 Sun MFS US Value 250 Sun CI Signature Diversified II 62 Sun MFS US Value Bundle 255 Sun CI Signature High Income 66 Sun Money Market 259 Sun CI Signature Income & Growth 70 Sun NWQ Flexible Income 264 Sun Daily Interest 74 Sun PH&N Short Term Bond and Mortgage 268 Sun Dollar Cost Average Daily Interest 78 Sun RBC Global High Yield Bond 272 Sun Dynamic American Value 82 Sun RBC North American Value 276 Sun Dynamic Equity Income 86 Sun RBC North American Value Bundle 280 Sun Dynamic Strategic Yield 90 Sun Schroder Emerging Markets 284 Sun Estate Settlement 94 Sun Sentry Conservative Balanced 288 Sun Fidelity Floating Rate High Income 99 Sun Sentry Global Mid Cap 293 Sun Fidelity Income Allocation 103 Sun Sentry Infrastructure 297 Sun Fidelity Monthly Income 107 Sun Sentry Value 301 Sun Fidelity NorthStar 111 Sun Sentry Value Bundle 305 Sun Fidelity True North 115 Sun Sionna Canadian Small Cap Equity 309 Sun Fiera Global Equity 119 Sun Strategic Income 313 Sun Fiera US Equity 123 Sun TD Canadian Bond 317 Sun Franklin Bissett Canadian Equity 127 Sun TD Dividend Income 321 Sun Franklin Bissett Cdn Equity Bundle 131 Sun TD Real Return Bond 325 Sun Franklin World Growth 135 Sun Templeton Global Bond 329 Sun Life Granite Balanced 139 Sun Trimark 333 Sun Life Granite Balanced Growth 144 Sun Trimark Canadian 337 Sun Life Granite Conservative 149 Notes to the Financial Statements 341 Sun Life Granite Enhanced Income 154 Sun Life Granite Growth 159 Sun Life Granite Income 164 Sun Life Granite Moderate 169 Sun MFS Canadian Bond 174 Sun MFS Canadian Equity Growth 179 Sun MFS Canadian Equity Growth Bundle 183 Sun MFS Canadian Equity Value 187 Sun MFS Canadian Equity Value Bundle 192

2 IndependentAuditors’Report

To the Unitholders of:

Sun Beutel Goodman Canadian Bond Sun Fiera US Equity Sun MFS Dividend Income Sun BlackRock Canadian Balanced Sun Franklin Bissett Canadian Equity Sun MFS Global Growth Sun BlackRock Canadian Composite Equity Sun Franklin Bissett Cdn Equity Bundle Sun MFS Global Total Return Sun BlackRock Cdn Composite Eq Bundle Sun NWQ Flexible Income Sun MFS Global Value Sun BlackRock Canadian Equity Sun PH&N Short Term Bond and Mortgage Sun MFS Global Value Bundle Sun BlackRock Canadian Equity Bundle Sun RBC Global High Yield Bond Sun MFS International Growth Sun BlackRock Cdn Universe Bond Sun RBC North American Value Sun MFS International Growth Bundle Sun Sionna Canadian Small Cap Equity Sun RBC North American Value Bundle Sun MFS International Value Sun CI Cambridge Cdn Asset Allocation Sun Schroder Emerging Markets Sun MFS International Value Bundle Sun CI Cambridge Canadian Equity Sun Sentry Conservative Balanced Sun MFS Monthly Income Sun CI Cambridge/MFS Canadian Bundle Sun Sentry Global Mid Cap Sun MFS US Equity Sun CI Cambridge Global Equity Sun Sentry Infrastructure Sun MFS US Equity Bundle Sun CI Cambridge/MFS Global Bundle Sun Sentry Value Sun MFS US Growth Sun CI Signature Diversified Yield II Sun Franklin World Growth Sun MFS US Value Sun CI Signature High Income Sun Life Granite Balanced Sun MFS US Value Bundle Sun CI Signature Income & Growth Sun Life Granite Balanced Growth Sun Money Market Sun Dynamic American Value Sun Life Granite Conservative Sun Sentry Value Bundle Sun Dynamic Equity Income Sun Life Granite Enhanced Income Sun TD Canadian Bond Sun Dynamic Strategic Yield Sun Life Granite Growth Sun TD Dividend Income Sun Fidelity Floating Rate High Income Sun Life Granite Income Sun TD Real Return Bond Sun Fidelity Income Allocation Sun Life Granite Moderate Sun Templeton Global Bond Sun Fidelity Monthly Income Sun MFS Canadian Bond Sun Trimark Canadian Sun Fidelity NorthStar Sun MFS Canadian Equity Growth Sun Trimark Sun Fidelity True North Sun MFS Canadian Equity Growth Bundle Sun Daily Interest Sun Canadian Balanced Bundle Sun MFS Canadian Equity Value Sun Dollar Cost Average Daily Interest Sun Fiera Global Equity Sun MFS Canadian Equity Value Bundle Sun Estate Settlement Sun Strategic Income

(collectively, the Funds)

We have audited the accompanying financial statements of the Funds, which comprise the statements of financial position as at 31 December 2015 and the statements of comprehensive income, changes in net attributable to holders of redeemable units and cash flows for the period ended 31 December 2015, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accord- ance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

3 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to an entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of an entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as at 31 December 2015 and their financial performance and their cash flows for the period ended 31 December 2015 in accordance with International Financial Reporting Standards.

Kitchener, Canada Chartered Professional Accountants 29 April 2016 Licensed Public Accountants

4 Sun Beutel Goodman Canadian Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets (non-derivative financial assets) (note 2) 313,782 Cash - Receivable for investment units sold 500 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 314,282 Liabilities Current liabilities Bank indebtedness 459 Redemptions payable 2 Payable for investment units purchased - Payable for fees & expenses 140 601 Net Assets Attributable to Holders of Redeemable Units 313,681

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,948 Net realized gain (loss) on sale of investments 256 Change in unrealized appreciation (depreciation) in value of investments 2,140 4,344 Expenses (note 5) Management fees 1,241 fees 427 Administration fees 84 Total operating expenses 1,752 Management fees waived/absorbed by the Manager (61) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,653

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

5 Sun Beutel Goodman Canadian Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,653 Holder of Redeemable Unit Transactions Proceeds from Units Issued 524,520 Redemption of Units (213,492) 311,028 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 313,681 Net Assets Attributable to Holders of Redeemable Units at end of period 313,681

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 2,653 Adjustments for: Net realized gain (loss) on sale of investments (256) Change in unrealized appreciation (depreciation) in value of investments (2,140) Purchases of investments (535,828) Proceeds from sale of investments 223,942 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 140 Net Cash provided by (used in) Operating Activities (311,489) Cash Flows from (used in) Financing Activities Proceeds from units issued 524,520 Redemption of units (213,490) Net Cash provided by (used in) Financing Activities 311,030 Net increase (decrease) in cash (459) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (459) Distribution Income Received 1,948

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

6 Sun Beutel Goodman Canadian Bond

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) Sun Life Beutel Goodman Canadian The Bank of Nova Scotia Bond Fund, Series I 31,698 311,642 313,782 2.09%, Sep 9, 2020 8,771,000 8,758,013 8,791,038 The -Dominion Bank Total Investments 311,642 313,782 100.03 2.62%, Dec 22, 2021 11,777,000 12,029,829 12,035,273 TransCanada PipeLines Ltd. Other Assets less Liabilities (101) (0.03) 8.29%, Feb 5, 2026 5,349,000 7,648,920 7,368,514 Total Net Assets 313,681 100.00 Discussion of Financial Risk Management Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk The Fund invests in the Sun Life Beutel Goodman Canadian Bond Fund (the Number of Average Fair "underlying fund"). The underlying fund's investment objective is to seek to Investment Shares Cost ($) Value ($) earn a high rate of income by investing primarily in fixed-income securities of Bank of Canadian government and corporate issuers. The underlying fund may from 3.40%, Apr 23, 2021 7,729,000 8,248,001 8,230,567 time to time invest up to 20% of the fund's portfolio in fixed-income Canada Housing Trust No. 1 securities of governments and companies outside Canada. Please refer to 2.05%, Jun 15, 2017 14,894,000 15,192,577 15,200,540 note 8 in the accompanying notes to the financial statements for an Canada Housing Trust No. 1 explanation of the various risks. 1.70%, Dec 15, 2017 36,171,000 36,791,562 36,867,477 Canada Housing Trust No. 1 1.75%, Jun 15, 2018 12,295,000 12,599,468 12,580,646 Financial Instrument Risk of the Underlying Fund(s) Canada Housing Trust No. 1 2.05%, Jun 15, 2018 34,870,000 35,882,157 35,932,285 The Fund is indirectly exposed to currency risk, interest rate risk, other market Canada Housing Trust No. 1 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), 2.35%, Dec 15, 2018 14,726,000 15,294,827 15,353,488 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Canada Housing Trust No. 1 to note 8 for an explanation of the management of the financial risks. The 4.10%, Dec 15, 2018 9,836,000 10,824,185 10,754,052 detailed risk analyses of the underlying fund(s) are disclosed in the financial Canada Housing Trust No. 1 statements of the underlying fund(s). 1.95%, Jun 15, 2019 8,455,000 8,761,633 8,732,844 Canada Housing Trust No. 1 1.20%, Jun 15, 2020 8,186,000 8,163,675 8,198,747 Canada Housing Trust No. 1 1.45%, Jun 15, 2020 7,373,000 7,436,298 7,463,034 Canada Housing Trust No. 1 1.25%, Dec 15, 2020 43,624,000 43,533,698 43,582,120 Canada Housing Trust No. 1 2.55%, Mar 15, 2025 8,060,000 8,452,758 8,464,538 Canadian Imperial Bank of Commerce 1.85%, Jul 14, 2020 9,613,000 9,612,338 9,601,425 Province of British Columbia 3.25%, Dec 18, 2021 6,920,000 7,524,540 7,574,182 Province of British Columbia 2.85%, Jun 18, 2025 14,550,000 15,045,668 15,351,237 Province of 4.20%, Jun 2, 2020 17,505,000 19,668,161 19,646,338 Province of Ontario 3.15%, Jun 2, 2022 20,427,000 21,936,393 22,096,189 Province of Ontario 2.85%, Jun 2, 2023 19,505,000 20,483,186 20,649,909 Province of Ontario 3.50%, Jun 2, 2024 17,404,000 18,943,189 19,169,192 Province of Ontario 2.60%, Jun 2, 2025 33,135,000 33,488,590 33,873,012 2.77%, Dec 11, 2018 7,559,000 7,846,321 7,815,818 Royal Bank of Canada 1.92%, Jul 17, 2020 8,288,000 8,290,082 8,286,025

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

7 Sun Beutel Goodman Canadian Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Beutel Goodman Canadian Bond - Estate Series A Sun Beutel Goodman Canadian Bond - Estate Series E 2015(4) 2015(4) The Fund's per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,304 Net assets(1) 508 Number of units outstanding(1) 131 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.10 Management expense ratio (%)(2) 2.10 Management expense ratio before waivers (%)(2) 2.18 Management expense ratio before waivers (%)(2) 2.18 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

Sun Beutel Goodman Canadian Bond - Estate Series F Sun Beutel Goodman Canadian Bond - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 499 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.53 Management expense ratio (%)(2) 0.48 Management expense ratio before waivers (%)(2) 1.61 Management expense ratio before waivers (%)(2) 0.48 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

Sun Beutel Goodman Canadian Bond - Investment Series A Sun Beutel Goodman Canadian Bond - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 123,129 Net assets(1) 508 Number of units outstanding(1) 12,358 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.93 Management expense ratio (%)(2) 1.93 Management expense ratio before waivers (%)(2) 2.01 Management expense ratio before waivers (%)(2) 2.01 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

Sun Beutel Goodman Canadian Bond - Investment Series F Sun Beutel Goodman Canadian Bond - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.99 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 508 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.36 Management expense ratio (%)(2) 0.31 Management expense ratio before waivers (%)(2) 1.44 Management expense ratio before waivers (%)(2) 0.31 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser A Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.93 Net asset value, end of period ($)(1) 10.15 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 45,875 Net assets(1) 508 Number of units outstanding(1) 4,622 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.90 Management expense ratio (%)(2) 2.90 Management expense ratio before waivers (%)(2) 2.97 Management expense ratio before waivers (%)(2) 2.97 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

8 Sun Beutel Goodman Canadian Bond

Financial Highlights (Continued)

Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser F Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.93 Net asset value, end of period ($)(1) 10.18 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 497 Net assets(1) 508 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.34 Management expense ratio (%)(2) 1.28 Management expense ratio before waivers (%)(2) 2.41 Management expense ratio before waivers (%)(2) 1.28 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

Sun Beutel Goodman Canadian Bond - Protect Series A Sun Beutel Goodman Canadian Bond - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.91 Net asset value, end of period ($)(1) 10.16 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 137,314 Net assets(1) 508 Number of units outstanding(1) 13,856 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.58 Management expense ratio (%)(2) 2.52 Management expense ratio before waivers (%)(2) 2.67 Management expense ratio before waivers (%)(2) 2.62 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

Sun Beutel Goodman Canadian Bond - Protect Series F Sun Beutel Goodman Canadian Bond - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.95 Net asset value, end of period ($)(1) 10.18 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 498 Net assets(1) 508 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.98 Management expense ratio (%)(2) 0.92 Management expense ratio before waivers (%)(2) 2.07 Management expense ratio before waivers (%)(2) 0.92 Portfolio turnover rate (%)(3) 207.39 Portfolio turnover rate (%)(3) 207.39

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

9 Sun BlackRock Canadian Balanced

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,517,515 Cash 64,410 Receivable for investment units sold 941 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 270 1,583,136 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 65,348 Payable for fees & expenses 769 66,118 Net Assets Attributable to Holders of Redeemable Units 1,517,018

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,300 Net realized gain (loss) on sale of investments (1,768) Change in unrealized appreciation (depreciation) in value of investments (28,040) (24,508) Expenses (note 5) Management fees 10,563 Insurance fees 3,720 Administration fees 529 Total operating expenses 14,812 Management fees waived/absorbed by the Manager (1,961) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (37,359)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

10 Sun BlackRock Canadian Balanced

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (37,359) Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,617,981 Redemption of Units (63,604) 1,554,377 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,517,018 Net Assets Attributable to Holders of Redeemable Units at end of period 1,517,018

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (37,359) Adjustments for: Net realized gain (loss) on sale of investments 1,768 Change in unrealized appreciation (depreciation) in value of investments 28,040 Purchases of investments (1,632,114) Proceeds from sale of investments 149,198 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (270) Increase (decrease) in fees & expenses payable 769 Net Cash provided by (used in) Operating Activities (1,489,968) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,617,981 Redemption of units (63,603) Net Cash provided by (used in) Financing Activities 1,554,378 Net increase (decrease) in cash 64,410 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 64,410 Distribution Income Received 5,300

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

11 Sun BlackRock Canadian Balanced

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life BlackRock Canadian Balanced Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund’s investment objective is to seek a Sun Life BlackRock Canadian Balanced combination of income and growth by investing primarily in Canadian equity Fund, Series I 130,878 1,545,555 1,517,515 securities and Canadian debt instruments directly or indirectly through mutual funds and exchange-traded funds that invest in such securities. The underlying Total Investments 1,545,555 1,517,515 100.03 fund may invest up to 45% in foreign securities directly or indirectly through Other Assets less Liabilities (497) (0.03) mutual funds that invest in such securities. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the Total Net Assets 1,517,018 100.00 various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). Cash 212,598 iShares Core U.S. Aggregate Bond ETF 32,364 3,622,827 4,855,791 iShares Global Consumer Discretionary ETF 17,773 1,027,150 2,197,770 iShares Global Consumer Staples ETF 17,703 1,310,894 2,292,890 iShares Global Healthcare ETF 19,993 1,428,884 2,849,993 iShares Global Industrials ETF 17,136 929,412 1,609,602 iShares Global Tech ETF 27,051 1,884,853 3,670,856 iShares Global Telecom ETF 1,375 86,075 110,513 iShares Global Utilities ETF 10,122 433,555 618,942 iShares iBoxx $ High Yield Corporate Bond ETF 12,136 1,133,790 1,358,429 iShares International Treasury Bond ETF 25,768 2,719,147 3,209,680 iShares J.P. Morgan USD Emerging Markets Bond ETF 9,190 1,072,028 1,350,370 Sun Life BlackRock Canadian Composite Equity Fund, Series I 2,821,564 26,658,532 26,372,872 Sun Life BlackRock Canadian Universe Bond Fund, Series I 1,481,418 15,728,796 15,928,652

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

12 Sun BlackRock Canadian Balanced

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun BlackRock Canadian Balanced - Estate Series A Sun BlackRock Canadian Balanced - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.30 Net asset value, end of period ($)(1) 9.93 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 399,060 Net assets(1) 496 Number of units outstanding(1) 42,901 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.76 Management expense ratio (%)(2) 2.76 Management expense ratio before waivers (%)(2) 3.18 Management expense ratio before waivers (%)(2) 3.18 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

Sun BlackRock Canadian Balanced - Estate Series F Sun BlackRock Canadian Balanced - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.38 Net asset value, end of period ($)(1) 9.95 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 469 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.62 Management expense ratio (%)(2) 0.92 Management expense ratio before waivers (%)(2) 2.05 Management expense ratio before waivers (%)(2) 0.92 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

Sun BlackRock Canadian Balanced - Investment Series A Sun BlackRock Canadian Balanced - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.35 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 353,777 Net assets(1) 38,723 Number of units outstanding(1) 37,825 Number of units outstanding(1) 3,898 Management expense ratio (%)(2) 2.43 Management expense ratio (%)(2) 2.43 Management expense ratio before waivers (%)(2) 2.85 Management expense ratio before waivers (%)(2) 2.85 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

Sun BlackRock Canadian Balanced - Investment Series F Sun BlackRock Canadian Balanced - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.40 Net asset value, end of period ($)(1) 9.96 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 470 Net assets(1) 498 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.29 Management expense ratio (%)(2) 0.58 Management expense ratio before waivers (%)(2) 1.71 Management expense ratio before waivers (%)(2) 0.58 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

Sun BlackRock Canadian Balanced - Lifetime Advantage Ser A Sun BlackRock Canadian Balanced - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.24 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 55,349 Net assets(1) 496 Number of units outstanding(1) 5,991 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.90 Management expense ratio (%)(2) 3.90 Management expense ratio before waivers (%)(2) 4.26 Management expense ratio before waivers (%)(2) 4.26 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

13 Sun BlackRock Canadian Balanced

Financial Highlights (Continued)

Sun BlackRock Canadian Balanced - Lifetime Advantage Ser F Sun BlackRock Canadian Balanced - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.31 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 465 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.77 Management expense ratio (%)(2) 2.00 Management expense ratio before waivers (%)(2) 3.13 Management expense ratio before waivers (%)(2) 2.00 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

Sun BlackRock Canadian Balanced - Protect Series A Sun BlackRock Canadian Balanced - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.28 Net asset value, end of period ($)(1) 9.92 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 664,761 Net assets(1) 496 Number of units outstanding(1) 71,669 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.19 Management expense ratio (%)(2) 3.19 Management expense ratio before waivers (%)(2) 3.58 Management expense ratio before waivers (%)(2) 3.61 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

Sun BlackRock Canadian Balanced - Protect Series F Sun BlackRock Canadian Balanced - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.34 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 467 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.26 Management expense ratio (%)(2) 1.55 Management expense ratio before waivers (%)(2) 2.68 Management expense ratio before waivers (%)(2) 1.55 Portfolio turnover rate (%)(3) 20.89 Portfolio turnover rate (%)(3) 20.89

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

14 Sun BlackRock Canadian Composite Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 177,947 Cash 2,049 Receivable for investment units sold 278 Subscriptions receivable - Distribution receivable from underlying fund Other receivable 738 181,012 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 2,327 Payable for fees & expenses 108 2,436 Net Assets Attributable to Holders of Redeemable Units 178,576

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 2,959 Net realized gain (loss) on sale of investments (41) Change in unrealized appreciation (depreciation) in value of investments (9,627) (6,709) Expenses (note 5) Management fees 742 Insurance fees 303 Administration fees 37 Total operating expenses 1,082 Management fees waived/absorbed by the Manager (111) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,680)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

15 Sun BlackRock Canadian Composite Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,680) Holder of Redeemable Unit Transactions Proceeds from Units Issued 186,258 Redemption of Units (2) 186,256 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 178,576 Net Assets Attributable to Holders of Redeemable Units at end of period 178,576

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (7,680) Adjustments for: Net realized gain (loss) on sale of investments 41 Change in unrealized appreciation (depreciation) in value of investments 9,627 Purchases of investments (186,153) Proceeds from sale of investments 587 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (738) Increase (decrease) in fees & expenses payable 108 Net Cash provided by (used in) Operating Activities (184,208) Cash Flows from (used in) Financing Activities Proceeds from units issued 186,258 Redemption of units (1) Net Cash provided by (used in) Financing Activities 186,257 Net increase (decrease) in cash 2,049 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 2,049 Distribution Income Received 2,959

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

16 Sun BlackRock Canadian Composite Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life BlackRock Canadian Composite Equity Investment Shares Cost ($) Value ($) Net Assets Class (the "underlying fund"). The underlying fund’s investment objective is to Sun Life BlackRock Canadian Composite seek long-term capital appreciation through exposure to primarily equity Equity Class, Series I 20,742 187,574 177,947 securities included in a broad and recognized Canadian equity market index that includes primarily large and mid-market capitalization companies the Total Investments 187,574 177,947 99.65 securities of which are considered to be the most liquid in Canadian equity Other Assets less Liabilities 629 0.35 markets by investing primarily in units of the Sun Life BlackRock Canadian Composite Equity Fund or its successor fund (the "underlying trust fund"). Total Net Assets 178,576 100.00 Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Trust Fund As at December 31, 2015 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Number of Average Fair to note 8 for an explanation of the management of the financial risks. The Investment Shares Cost ($) Value ($) detailed risk analyses of the underlying fund(s) are disclosed in the financial Agrium Inc. 48,668 4,768,810 6,018,772 statements of the underlying fund(s). Alimentation Couche-Tard Inc., Class B 147,697 3,906,527 8,996,224 226,337 15,064,167 17,672,393 BCE Inc. 304,455 13,838,979 16,276,164 Brookfield Asset Management Inc., Class A 304,089 8,826,860 13,273,485 Canadian Imperial Bank of Commerce 139,936 11,896,483 12,760,764 Canadian National Railway Co. 279,203 15,409,715 21,596,352 Canadian Natural Resources Ltd. 385,494 13,816,823 11,649,629 Canadian Pacific Railway Ltd. 48,993 6,540,768 8,658,533 Cash 9,174,905 CGI Group Inc., Class A 97,082 3,093,660 5,378,343 Inc. 304,204 13,582,667 13,993,384 Inc. 135,313 5,218,020 7,593,766 Financial Corp. 694,349 11,872,118 14,400,798 Potash Corporation of Saskatchewan Inc. 294,129 11,993,877 6,970,856 Inc., Class B 126,117 5,191,828 6,018,303 Royal Bank of Canada 523,075 33,893,494 38,786,011 Sun Life Financial Inc. 215,295 6,840,482 9,289,979 Inc. 509,161 18,222,608 18,187,231 Corp. 211,372 7,147,777 8,087,093 The Bank of Nova Scotia 423,709 25,022,841 23,714,992 The Toronto-Dominion Bank 653,099 29,915,273 35,424,090 Corp. 113,628 4,259,841 5,955,243 TransCanada Corporation 249,714 11,489,023 11,284,576 Valeant Pharmaceuticals International, Inc. 112,967 13,001,465 15,878,641

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

17 Sun BlackRock Canadian Composite Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun BlackRock Cdn Composite Equity - Estate Series A Sun BlackRock Cdn Composite Equity - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.47 Net asset value, end of period ($)(1) 9.66 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 64,257 Net assets(1) 483 Number of units outstanding(1) 7,588 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.84 Management expense ratio (%)(2) 2.83 Management expense ratio before waivers (%)(2) 3.17 Management expense ratio before waivers (%)(2) 3.17 Portfolio turnover rate (%)(3) 1.13 Portfolio turnover rate (%)(3) 1.13

Sun BlackRock Cdn Composite Equity - Estate Series F Sun BlackRock Cdn Composite Equity - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.54 Net asset value, end of period ($)(1) 9.68 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 427 Net assets(1) 484 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.71 Management expense ratio (%)(2) 0.90 Management expense ratio before waivers (%)(2) 2.04 Management expense ratio before waivers (%)(2) 0.90 Portfolio turnover rate (%)(3) 1.13 Portfolio turnover rate (%)(3) 1.13

Sun BlackRock Cdn Composite Equity - Investment Series A Sun BlackRock Cdn Composite Equity - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.51 Net asset value, end of period ($)(1) 9.67 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 17,105 Net assets(1) 483 Number of units outstanding(1) 2,011 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.33 Management expense ratio (%)(2) 2.33 Management expense ratio before waivers (%)(2) 2.65 Management expense ratio before waivers (%)(2) 2.67 Portfolio turnover rate (%)(3) 1.13 Portfolio turnover rate (%)(3) 1.13

Sun BlackRock Cdn Composite Equity - Investment Series F Sun BlackRock Cdn Composite Equity - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.56 Net asset value, end of period ($)(1) 9.69 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 428 Net assets(1) 484 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.25 Management expense ratio (%)(2) 0.47 Management expense ratio before waivers (%)(2) 1.58 Management expense ratio before waivers (%)(2) 0.47 Portfolio turnover rate (%)(3) 1.13 Portfolio turnover rate (%)(3) 1.13

Sun BlackRock Cdn Composite Equity - Protect Series A Sun BlackRock Cdn Composite Equity - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.43 Net asset value, end of period ($)(1) 9.65 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 93,035 Net assets(1) 482 Number of units outstanding(1) 11,033 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.56 Management expense ratio (%)(2) 3.55 Management expense ratio before waivers (%)(2) 3.90 Management expense ratio before waivers (%)(2) 3.90 Portfolio turnover rate (%)(3) 1.13 Portfolio turnover rate (%)(3) 1.13

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

18 Sun BlackRock Canadian Composite Equity

Financial Highlights (Continued)

Sun BlackRock Cdn Composite Equity - Protect Series F Sun BlackRock Cdn Composite Equity - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.50 Net asset value, end of period ($)(1) 9.67 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 425 Net assets(1) 483 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.43 Management expense ratio (%)(2) 1.65 Management expense ratio before waivers (%)(2) 2.77 Management expense ratio before waivers (%)(2) 1.65 Portfolio turnover rate (%)(3) 1.13 Portfolio turnover rate (%)(3) 1.13

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

19 Sun BlackRock Canadian Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 257,024 Cash - Receivable for investment units sold 350 Subscriptions receivable 4,000 Distribution receivable from underlying fund - Other receivable - 261,374 Liabilities Current liabilities Bank indebtedness 300 Redemptions payable 1 Payable for investment units purchased 50 Payable for fees & expenses 141 492 Net Assets Attributable to Holders of Redeemable Units 260,882

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 4,391 Net realized gain (loss) on sale of investments (83) Change in unrealized appreciation (depreciation) in value of investments (10,130) (5,822) Expenses (note 5) Management fees 1,498 Insurance fees 463 Administration fees 76 Total operating expenses 2,037 Management fees waived/absorbed by the Manager (186) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,673)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

20 Sun BlackRock Canadian Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,673) Holder of Redeemable Unit Transactions Proceeds from Units Issued 268,949 Redemption of Units (394) 268,555 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 260,882 Net Assets Attributable to Holders of Redeemable Units at end of period 260,882

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (7,673) Adjustments for: Net realized gain (loss) on sale of investments 83 Change in unrealized appreciation (depreciation) in value of investments 10,130 Purchases of investments (270,474) Proceeds from sale of investments 2,937 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 141 Net Cash provided by (used in) Operating Activities (264,856) Cash Flows from (used in) Financing Activities Proceeds from units issued 264,949 Redemption of units (393) Net Cash provided by (used in) Financing Activities 264,556 Net increase (decrease) in cash (300) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (300) Distribution Income Received 4,391

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

21 Sun BlackRock Canadian Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life BlackRock Canadian Equity Class (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund’s investment objective is to seek Sun Life BlackRock Canadian Equity capital appreciation through exposure to primarily Canadian equity securities Class, Series I 28,243 267,154 257,024 by investing primarily in units of the Sun Life BlackRock Canadian Equity Fund or its successor fund (the "underlying trust fund"). The underlying fund may Total Investments 267,154 257,024 98.52 invest up to 45% of the underlying trust fund's assets in foreign securities. Other Assets less Liabilities 3,858 1.48 Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 260,882 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Trust Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Cash 140,609 iShares Global Consumer Staples ETF 59,855 4,290,544 7,752,407 iShares Global Healthcare ETF 78,288 5,247,727 11,159,920 iShares Global Tech ETF 98,703 6,472,483 13,394,124 iShares Global Utilities ETF 25,641 1,073,711 1,567,902 iShares S&P Global Consumer Discretionary Index ETF 264,603 5,536,504 7,612,628 iShares S&P Global Industrials Index ETF 209,020 4,247,335 5,256,853 Sun Life BlackRock Canadian Composite Equity Fund, Series I 11,509,446 101,568,926 107,577,643

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

22 Sun BlackRock Canadian Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun BlackRock Canadian Equity - Estate Series A Sun BlackRock Canadian Equity - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.04 Net asset value, end of period ($)(1) 9.80 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 32,148 Net assets(1) 490 Number of units outstanding(1) 3,555 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.06 Management expense ratio (%)(2) 3.06 Management expense ratio before waivers (%)(2) 3.34 Management expense ratio before waivers (%)(2) 3.34 Portfolio turnover rate (%)(3) 2.91 Portfolio turnover rate (%)(3) 2.91

Sun BlackRock Canadian Equity - Estate Series F Sun BlackRock Canadian Equity - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.11 Net asset value, end of period ($)(1) 9.83 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 456 Net assets(1) 491 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.93 Management expense ratio (%)(2) 1.08 Management expense ratio before waivers (%)(2) 2.21 Management expense ratio before waivers (%)(2) 1.08 Portfolio turnover rate (%)(3) 2.91 Portfolio turnover rate (%)(3) 2.91

Sun BlackRock Canadian Equity - Investment Series A Sun BlackRock Canadian Equity - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.07 Net asset value, end of period ($)(1) 9.81 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 149,898 Net assets(1) 491 Number of units outstanding(1) 16,526 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.62 Management expense ratio (%)(2) 2.62 Management expense ratio before waivers (%)(2) 2.89 Management expense ratio before waivers (%)(2) 2.89 Portfolio turnover rate (%)(3) 2.91 Portfolio turnover rate (%)(3) 2.91

Sun BlackRock Canadian Equity - Investment Series F Sun BlackRock Canadian Equity - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.14 Net asset value, end of period ($)(1) 9.84 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 457 Net assets(1) 491 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.49 Management expense ratio (%)(2) 0.64 Management expense ratio before waivers (%)(2) 1.76 Management expense ratio before waivers (%)(2) 0.64 Portfolio turnover rate (%)(3) 2.91 Portfolio turnover rate (%)(3) 2.91

Sun BlackRock Canadian Equity - Protect Series A Sun BlackRock Canadian Equity - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.99 Net asset value, end of period ($)(1) 9.79 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 74,526 Net assets(1) 490 Number of units outstanding(1) 8,289 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.84 Management expense ratio (%)(2) 3.79 Management expense ratio before waivers (%)(2) 4.14 Management expense ratio before waivers (%)(2) 4.08 Portfolio turnover rate (%)(3) 2.91 Portfolio turnover rate (%)(3) 2.91

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

23 Sun BlackRock Canadian Equity

Financial Highlights (Continued)

Sun BlackRock Canadian Equity - Protect Series F Sun BlackRock Canadian Equity - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.07 Net asset value, end of period ($)(1) 9.82 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 453 Net assets(1) 491 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.65 Management expense ratio (%)(2) 1.82 Management expense ratio before waivers (%)(2) 2.95 Management expense ratio before waivers (%)(2) 1.82 Portfolio turnover rate (%)(3) 2.91 Portfolio turnover rate (%)(3) 2.91

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

24 Sun BlackRock Canadian Equity Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 163,918 Cash 23,470 Receivable for investment units sold - Subscriptions receivable 4,221 Distribution receivable from underlying fund - Other receivable 111 191,720 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 23,467 Payable for fees & expenses 102 23,569 Net Assets Attributable to Holders of Redeemable Units 168,151

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 2,539 Net realized gain (loss) on sale of investments (271) Change in unrealized appreciation (depreciation) in value of investments (3,751) (1,483) Expenses (note 5) Management fees 646 Insurance fees 488 Administration fees 33 Total operating expenses 1,167 Management fees waived/absorbed by the Manager (104) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (2,546)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

25 Sun BlackRock Canadian Equity Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (2,546) Holder of Redeemable Unit Transactions Proceeds from Units Issued 170,697 Redemption of Units - 170,697 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 168,151 Net Assets Attributable to Holders of Redeemable Units at end of period 168,151

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (2,546) Adjustments for: Net realized gain (loss) on sale of investments 271 Change in unrealized appreciation (depreciation) in value of investments 3,751 Purchases of investments (153,097) Proceeds from sale of investments 8,624 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (111) Increase (decrease) in fees & expenses payable 102 Net Cash provided by (used in) Operating Activities (143,006) Cash Flows from (used in) Financing Activities Proceeds from units issued 166,476 Redemption of units - Net Cash provided by (used in) Financing Activities 166,476 Net increase (decrease) in cash 23,470 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 23,470 Distribution Income Received 2,539

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

26 Sun BlackRock Canadian Equity Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life Sun Life BlackRock Canadian Equity BlackRock Canadian Equity Class as its main investment. Please refer to note 8 Class, Series I 12,551 117,196 114,222 in the accompanying notes to the financial statements for an explanation of Sun Life MFS Canadian Bond the various risks. Fund, Series I 3,663 50,473 49,696

Total Investments 167,669 163,918 97.48 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities 4,233 2.52 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 168,151 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life BlackRock Canadian Equity Class, Series I iShares Global Consumer Staples ETF 59,855 4,290,544 7,752,407 iShares Global Healthcare ETF 78,288 5,247,727 11,159,920 iShares Global Tech ETF 98,703 6,472,483 13,394,124 iShares S&P Global Consumer Discretionary Index ETF 264,603 5,536,504 7,612,628 Sun Life BlackRock Canadian Composite Equity Fund, Series I 11,509,446 101,568,926 107,577,643 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

27 Sun BlackRock Canadian Equity Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser A Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.21 Net asset value, end of period ($)(1) 9.87 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 166,699 Net assets(1) 494 Number of units outstanding(1) 18,094 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.90 Management expense ratio (%)(2) 3.86 Management expense ratio before waivers (%)(2) 4.27 Management expense ratio before waivers (%)(2) 4.22 Portfolio turnover rate (%)(3) 18.80 Portfolio turnover rate (%)(3) 18.80

Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser F Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.29 Net asset value, end of period ($)(1) 9.89 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 464 Net assets(1) 494 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.72 Management expense ratio (%)(2) 1.95 Management expense ratio before waivers (%)(2) 3.08 Management expense ratio before waivers (%)(2) 1.95 Portfolio turnover rate (%)(3) 18.80 Portfolio turnover rate (%)(3) 18.80

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

28 Sun BlackRock Cdn Composite Eq Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 116,674 Cash - Receivable for investment units sold 82 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 116,756 Liabilities Current liabilities Bank indebtedness 82 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 84 166 Net Assets Attributable to Holders of Redeemable Units 116,590

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 2,476 Net realized gain (loss) on sale of investments (58) Change in unrealized appreciation (depreciation) in value of investments (7,704) (5,286) Expenses (note 5) Management fees 1,085 Insurance fees 818 Administration fees 54 Total operating expenses 1,957 Management fees waived/absorbed by the Manager (174) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,069)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

29 Sun BlackRock Cdn Composite Eq Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,069) Holder of Redeemable Unit Transactions Proceeds from Units Issued 123,659 Redemption of Units - 123,659 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 116,590 Net Assets Attributable to Holders of Redeemable Units at end of period 116,590

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (7,069) Adjustments for: Net realized gain (loss) on sale of investments 58 Change in unrealized appreciation (depreciation) in value of investments 7,704 Purchases of investments (126,136) Proceeds from sale of investments 1,618 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 84 Net Cash provided by (used in) Operating Activities (123,741) Cash Flows from (used in) Financing Activities Proceeds from units issued 123,659 Redemption of units - Net Cash provided by (used in) Financing Activities 123,659 Net increase (decrease) in cash (82) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (82) Distribution Income Received 2,476

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

30 Sun BlackRock Cdn Composite Eq Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life Sun Life BlackRock Canadian Composite BlackRock Canadian Composite Equity Class as its main investment. Please Equity Class, Series I 9,305 86,643 79,823 refer to note 8 in the accompanying notes to the financial statements for an Sun Life MFS Canadian Bond explanation of the various risks. Fund, Series I 2,716 37,735 36,851

Total Investments 124,378 116,674 100.07 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities (84) (0.07) The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 116,590 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life BlackRock Canadian Composite Equity Class, Series I Canadian National Railway Co. 279,203 15,409,715 21,596,352 Royal Bank of Canada 523,075 33,893,494 38,786,011 Suncor Energy Inc. 509,161 18,222,608 18,187,231 The Bank of Nova Scotia 423,709 25,022,841 23,714,992 The Toronto-Dominion Bank 653,099 29,915,273 35,424,090 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

31 Sun BlackRock Cdn Composite Eq Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr A Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.87 Net asset value, end of period ($)(1) 9.79 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 115,163 Net assets(1) 490 Number of units outstanding(1) 12,988 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.73 Management expense ratio (%)(2) 3.73 Management expense ratio before waivers (%)(2) 4.09 Management expense ratio before waivers (%)(2) 4.09 Portfolio turnover rate (%)(3) 2.33 Portfolio turnover rate (%)(3) 2.33

Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr F Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.94 Net asset value, end of period ($)(1) 9.82 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 447 Net assets(1) 490 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.60 Management expense ratio (%)(2) 1.83 Management expense ratio before waivers (%)(2) 2.96 Management expense ratio before waivers (%)(2) 1.83 Portfolio turnover rate (%)(3) 2.33 Portfolio turnover rate (%)(3) 2.33

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

32 Sun BlackRock Cdn Universe Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 464,063 Cash - Receivable for investment units sold 2,021 Subscriptions receivable 216,216 Distribution receivable from underlying fund - Other receivable - 682,300 Liabilities Current liabilities Bank indebtedness 1,951 Redemptions payable 2 Payable for investment units purchased - Payable for fees & expenses 184 2,137 Net Assets Attributable to Holders of Redeemable Units 680,163

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,210 Net realized gain (loss) on sale of investments (309) Change in unrealized appreciation (depreciation) in value of investments 632 5,533 Expenses (note 5) Management fees 2,347 Insurance fees 446 Administration fees 158 Total operating expenses 2,951 Management fees waived/absorbed by the Manager (122) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,704

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

33 Sun BlackRock Cdn Universe Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,704 Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,031,162 Redemption of Units (353,703) 677,459 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 680,163 Net Assets Attributable to Holders of Redeemable Units at end of period 680,163

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 2,704 Adjustments for: Net realized gain (loss) on sale of investments 309 Change in unrealized appreciation (depreciation) in value of investments (632) Purchases of investments (789,305) Proceeds from sale of investments 323,544 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 184 Net Cash provided by (used in) Operating Activities (463,196) Cash Flows from (used in) Financing Activities Proceeds from units issued 814,946 Redemption of units (353,701) Net Cash provided by (used in) Financing Activities 461,245 Net increase (decrease) in cash (1,951) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (1,951) Distribution Income Received 5,210

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

34 Sun BlackRock Cdn Universe Bond

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) Sun Life BlackRock Canadian Universe Province of Ontario Bond Fund, Series I 43,159 463,431 464,063 3.45%, Jun 2, 2045 8,303,000 8,411,402 8,686,229 Province of Ontario Total Investments 463,431 464,063 68.23 2.90%, Dec 2, 2046 7,425,000 7,058,825 6,982,112 Province of Other Assets less Liabilities 216,100 31.77 5.00%, Dec 1, 2041 5,253,000 6,772,385 6,848,929 Total Net Assets 680,163 100.00 Discussion of Financial Risk Management Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk The Fund invests in the Sun Life BlackRock Canadian Universe Bond Fund (the Number of Average Fair "underlying fund"). The underlying fund's investment objective is to provide Investment Shares Cost ($) Value ($) income by replicating, to the extent possible, the performance, net of fees, of Canada Housing Trust No. 1 a broad and recognized Canadian bond market index (the "Index"). The 2.00%, Dec 15, 2019 6,470,000 6,639,614 6,699,287 underlying fund invests directly in fixed income securities included in the Index Canadian Government Bond and/or may achieve indirect exposure to some or all of the Index by investing 1.50%, Feb 1, 2017 7,900,000 7,997,184 7,986,963 in exchange-traded funds, mutual funds or derivatives that are correlated to Canadian Government Bond the performance of the Index. Please refer to note 8 in the accompanying 1.25%, Aug 1, 2017 9,475,000 9,589,946 9,589,526 notes to the financial statements for an explanation of the various risks. Canadian Government Bond 1.25%, Feb 1, 2018 8,045,000 8,149,529 8,173,251 Canadian Government Bond Financial Instrument Risk of the Underlying Fund(s) 3.75%, Jun 1, 2019 10,146,000 11,327,602 11,237,200 Canadian Government Bond The Fund is indirectly exposed to currency risk, interest rate risk, other market 3.50%, Jun 1, 2020 7,665,000 8,547,934 8,607,199 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Canadian Government Bond to the extent the underlying fund(s) is (are) exposed to these risks. Please refer 3.25%, Jun 1, 2021 6,353,000 7,102,448 7,154,358 to note 8 for an explanation of the management of the financial risks. The Canadian Government Bond detailed risk analyses of the underlying fund(s) are disclosed in the financial 2.75%, Jun 1, 2022 6,366,000 6,927,504 7,043,542 statements of the underlying fund(s). Canadian Government Bond 1.50%, Jun 1, 2023 7,230,000 7,177,065 7,398,421 Canadian Government Bond 2.50%, Jun 1, 2024 6,993,000 7,428,423 7,670,426 Canadian Government Bond 2.25%, Jun 1, 2025 6,705,000 7,075,349 7,208,689 Canadian Government Bond 5.75%, Jun 1, 2029 5,674,000 8,210,475 8,345,736 Canadian Government Bond 5.75%, Jun 1, 2033 6,630,000 10,052,963 10,252,451 Canadian Government Bond 5.00%, Jun 1, 2037 7,122,000 10,337,338 10,625,022 Canadian Government Bond 4.00%, Jun 1, 2041 8,885,000 11,682,500 12,069,918 Canadian Government Bond 3.50%, Dec 1, 2045 7,497,000 9,347,819 9,723,334 Province of Ontario 4.20%, Jun 2, 2020 7,105,000 7,945,907 7,974,135 Province of Ontario 3.15%, Jun 2, 2022 8,125,000 8,657,701 8,788,933 Province of Ontario 2.85%, Jun 2, 2023 7,500,000 7,740,008 7,940,237 Province of Ontario 3.50%, Jun 2, 2024 7,350,000 7,894,825 8,095,470 Province of Ontario 2.60%, Jun 2, 2025 8,450,000 8,600,229 8,638,206 Province of Ontario 3.50%, Jun 2, 2043 6,700,000 6,999,646 7,037,342

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

35 Sun BlackRock Cdn Universe Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun BlackRock Cdn Universe Bond - Estate Series A Sun BlackRock Cdn Universe Bond - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.09 Net asset value, end of period ($)(1) 10.18 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 112,186 Net assets(1) 509 Number of units outstanding(1) 11,120 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.07 Management expense ratio (%)(2) 2.07 Management expense ratio before waivers (%)(2) 2.15 Management expense ratio before waivers (%)(2) 2.15 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

Sun BlackRock Cdn Universe Bond - Estate Series F Sun BlackRock Cdn Universe Bond - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.11 Net asset value, end of period ($)(1) 10.21 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 505 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.50 Management expense ratio (%)(2) 0.45 Management expense ratio before waivers (%)(2) 1.58 Management expense ratio before waivers (%)(2) 0.45 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

Sun BlackRock Cdn Universe Bond - Investment Series A Sun BlackRock Cdn Universe Bond - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.08 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 476,239 Net assets(1) 509 Number of units outstanding(1) 47,238 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.90 Management expense ratio (%)(2) 1.90 Management expense ratio before waivers (%)(2) 1.98 Management expense ratio before waivers (%)(2) 1.98 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

Sun BlackRock Cdn Universe Bond - Investment Series F Sun BlackRock Cdn Universe Bond - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.12 Net asset value, end of period ($)(1) 10.21 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 506 Net assets(1) 510 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.33 Management expense ratio (%)(2) 0.28 Management expense ratio before waivers (%)(2) 1.41 Management expense ratio before waivers (%)(2) 0.28 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser A Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.02 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 3,801 Net assets(1) 509 Number of units outstanding(1) 379 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.86 Management expense ratio (%)(2) 2.82 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 2.95 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

36 Sun BlackRock Cdn Universe Bond

Financial Highlights (Continued)

Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser F Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.06 Net asset value, end of period ($)(1) 10.20 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 503 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.25 Management expense ratio (%)(2) 1.24 Management expense ratio before waivers (%)(2) 2.37 Management expense ratio before waivers (%)(2) 1.24 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

Sun BlackRock Cdn Universe Bond - Protect Series A Sun BlackRock Cdn Universe Bond - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.04 Net asset value, end of period ($)(1) 10.18 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 81,846 Net assets(1) 509 Number of units outstanding(1) 8,155 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.51 Management expense ratio (%)(2) 2.46 Management expense ratio before waivers (%)(2) 2.65 Management expense ratio before waivers (%)(2) 2.59 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

Sun BlackRock Cdn Universe Bond - Protect Series F Sun BlackRock Cdn Universe Bond - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.08 Net asset value, end of period ($)(1) 10.20 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 504 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.90 Management expense ratio (%)(2) 0.89 Management expense ratio before waivers (%)(2) 2.04 Management expense ratio before waivers (%)(2) 0.89 Portfolio turnover rate (%)(3) 164.19 Portfolio turnover rate (%)(3) 164.19

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

37 Sun Canadian Balanced Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 154,266 Cash - Receivable for investment units sold 159 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 154,425 Liabilities Current liabilities Bank indebtedness 159 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 111 270 Net Assets Attributable to Holders of Redeemable Units 154,155

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 7,284 Net realized gain (loss) on sale of investments (38) Change in unrealized appreciation (depreciation) in value of investments (9,094) (1,848) Expenses (note 5) Management fees 1,051 Insurance fees 791 Administration fees 53 Total operating expenses 1,895 Management fees waived/absorbed by the Manager (21) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,722)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

38 Sun Canadian Balanced Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,722) Holder of Redeemable Unit Transactions Proceeds from Units Issued 157,877 Redemption of Units - 157,877 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 154,155 Net Assets Attributable to Holders of Redeemable Units at end of period 154,155

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (3,722) Adjustments for: Net realized gain (loss) on sale of investments 38 Change in unrealized appreciation (depreciation) in value of investments 9,094 Purchases of investments (165,161) Proceeds from sale of investments 1,604 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 111 Net Cash provided by (used in) Operating Activities (158,036) Cash Flows from (used in) Financing Activities Proceeds from units issued 157,877 Redemption of units - Net Cash provided by (used in) Financing Activities 157,877 Net increase (decrease) in cash (159) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (159) Distribution Income Received 7,284

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

39 Sun Canadian Balanced Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Fidelity True Fidelity True North Fund, Series O 2,489 115,191 107,469 North® Fund as its main investment. Please refer to note 8 in the Sun Life MFS Canadian Bond accompanying notes to the financial statements for an explanation of the Fund, Series I 3,450 48,169 46,797 various risks.

Total Investments 163,360 154,266 100.07 Financial Instrument Risk of the Underlying Fund(s) Other Assets less Liabilities (111) (0.07) The Fund is indirectly exposed to currency risk, interest rate risk, other market Total Net Assets 154,155 100.00 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Top 5 Holdings of each of the Underlying Funds statements of the underlying fund(s). As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Fidelity True North Fund, Series O Canadian National Railway Co. 2,275,000 90,351,595 175,971,250 Loblaw Cos. Ltd. 3,350,000 112,694,345 218,889,000 Manulife Financial Corp. 7,500,000 109,714,913 155,550,000 Rogers Communication Inc. 3,575,000 134,389,938 170,599,000 The Toronto-Dominion Bank 6,775,000 190,014,767 367,476,000 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

40 Sun Canadian Balanced Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Canadian Balanced Bundle - Lifetime Advantage Series A Sun Canadian Balanced Bundle - Lifetime Advantage Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.50 Net asset value, end of period ($)(1) 9.57 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 153,677 Net assets(1) 478 Number of units outstanding(1) 16,182 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.76 Management expense ratio (%)(2) 2.91 Management expense ratio before waivers (%)(2) 3.80 Management expense ratio before waivers (%)(2) 2.96 Portfolio turnover rate (%)(3) 2.12 Portfolio turnover rate (%)(3) 2.12

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

41 Sun CI Cambridge Canadian Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,278,609 Cash 58,091 Receivable for investment units sold 2,039 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 1,338,739 Liabilities Current liabilities Bank indebtedness - Redemptions payable 113 Payable for investment units purchased 60,131 Payable for fees & expenses 765 61,009 Net Assets Attributable to Holders of Redeemable Units 1,277,730

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund - Net realized gain (loss) on sale of investments (1,328) Change in unrealized appreciation (depreciation) in value of investments (6,587) (7,915) Expenses (note 5) Management fees 10,319 Insurance fees 2,511 Administration fees 2,300 Total operating expenses 15,130 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (23,045)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

42 Sun CI Cambridge Canadian Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (23,045) Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,370,018 Redemption of Units (69,243) 1,300,775 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,277,730 Net Assets Attributable to Holders of Redeemable Units at end of period 1,277,730

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (23,045) Adjustments for: Net realized gain (loss) on sale of investments 1,328 Change in unrealized appreciation (depreciation) in value of investments 6,587 Purchases of investments (1,290,317) Proceeds from sale of investments 61,885 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 765 Net Cash provided by (used in) Operating Activities (1,242,797) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,370,018 Redemption of units (69,130) Net Cash provided by (used in) Financing Activities 1,300,888 Net increase (decrease) in cash 58,091 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 58,091 Distribution Income Received -

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

43 Sun CI Cambridge Canadian Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Cambridge Canadian Equity Corporate Class (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). This underlying fund’s objective is to achieve long-term Cambridge Canadian Equity Corporate capital growth by investing, directly or indirectly, primarily in equity securities Class, Series I 66,181 1,285,196 1,278,609 of Canadian companies. Indirect investments may include convertible securities, derivatives, equity-related securities and securities of other mutual Total Investments 1,285,196 1,278,609 100.07 funds. Please refer to note 8 in the accompanying notes to the financial Other Assets less Liabilities (879) (0.07) statements for an explanation of the various risks. Total Net Assets 1,277,730 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) ACE Ltd. 500,000 79,422,906 80,837,081 Activision Blizzard Inc. 2,250,000 89,894,115 120,508,475 Allison Transmission Holdings Inc. 2,500,000 84,594,869 89,553,788 Alphabet Inc. 125,000 92,103,755 134,557,247 Anheuser-Busch InBev NV 775,000 116,640,099 133,299,254 Avis Budget Group Inc. 1,800,000 110,427,249 90,379,799 Bank of America Corp. 3,500,000 73,313,745 81,501,211 Brookfield Infrastructure Partners LP 3,275,000 182,162,431 171,544,500 CGI Group Inc. 2,600,000 95,839,884 144,040,000 Ecolab Inc. 525,000 72,743,576 83,084,746 Finning International Inc. 6,600,000 149,908,327 123,288,000 Fluor Corp. 1,600,000 97,954,888 104,534,071 Franco-Nevada Corp. 2,000,000 109,236,774 126,600,000 George Weston Ltd. 1,250,000 97,351,772 133,675,000 H&R Block Inc. 2,500,000 104,266,685 115,219,647 Intact Financial Corp. 1,150,000 93,244,378 101,982,000 McKesson Corp. 300,000 81,367,029 81,866,482 PrairieSky Royalty Ltd. 5,150,000 146,938,407 112,888,000 Restaurant Brands International Inc. 2,447,500 114,297,521 126,658,125 Synchrony Financial 2,250,000 92,336,651 94,669,664 Teledyne Technologies Inc. 1,000,000 128,433,267 122,725,700 Tourmaline Oil Corp. 8,500,000 290,972,816 189,975,000 TransForce Inc. 3,750,000 83,902,322 88,537,500 US Bancorp 2,500,000 121,141,801 147,595,988 Walgreens Boots Alliance Inc. 1,750,000 178,824,226 206,186,441

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

44 Sun CI Cambridge Canadian Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Cambridge Canadian Equity - Estate Series A Sun CI Cambridge Canadian Equity - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.61 Net asset value, end of period ($)(1) 9.68 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 525,475 Net assets(1) 484 Number of units outstanding(1) 54,690 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.39 Management expense ratio (%)(2) 2.42 Management expense ratio before waivers (%)(2) 3.39 Management expense ratio before waivers (%)(2) 2.42 Portfolio turnover rate (%)(3) 9.02 Portfolio turnover rate (%)(3) 9.02

Sun CI Cambridge Canadian Equity - Investment Series A Sun CI Cambridge Canadian Equity - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.63 Net asset value, end of period ($)(1) 9.71 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 751,286 Net assets(1) 485 Number of units outstanding(1) 78,001 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.09 Management expense ratio (%)(2) 1.98 Management expense ratio before waivers (%)(2) 3.09 Management expense ratio before waivers (%)(2) 1.98 Portfolio turnover rate (%)(3) 9.02 Portfolio turnover rate (%)(3) 9.02

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

45 Sun CI Cambridge Cdn Asset Allocation

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 5,173,899 Cash 1,807 Receivable for investment units sold 9,244 Subscriptions receivable 14,929 Distribution receivable from underlying fund - Other receivable 51 5,199,930 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1,000 Payable for investment units purchased 10,928 Payable for fees & expenses 2,929 14,857 Net Assets Attributable to Holders of Redeemable Units 5,185,073

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund - Net realized gain (loss) on sale of investments 2,099 Change in unrealized appreciation (depreciation) in value of investments 17,086 19,185 Expenses (note 5) Management fees 36,328 Insurance fees 6,553 Administration fees 4,128 Total operating expenses 47,009 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (27,824)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

46 Sun CI Cambridge Cdn Asset Allocation

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (27,824) Holder of Redeemable Unit Transactions Proceeds from Units Issued 5,432,249 Redemption of Units (219,352) 5,212,897 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 5,185,073 Net Assets Attributable to Holders of Redeemable Units at end of period 5,185,073

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (27,824) Adjustments for: Net realized gain (loss) on sale of investments (2,099) Change in unrealized appreciation (depreciation) in value of investments (17,086) Purchases of investments (5,335,048) Proceeds from sale of investments 182,018 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (51) Increase (decrease) in fees & expenses payable 2,929 Net Cash provided by (used in) Operating Activities (5,197,161) Cash Flows from (used in) Financing Activities Proceeds from units issued 5,417,320 Redemption of units (218,352) Net Cash provided by (used in) Financing Activities 5,198,968 Net increase (decrease) in cash 1,807 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 1,807 Distribution Income Received -

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

47 Sun CI Cambridge Cdn Asset Allocation

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Cambridge Asset Allocation Corporate Class (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). This underlying fund's objective is to achieve a superior Cambridge Asset Allocation Corporate total investment return by investing, directly or indirectly, in a combination of Class, Series I 283,036 5,156,813 5,173,899 primarily equity and fixed income securities of Canadian companies. Indirect investments may include convertible securities, derivatives, equity-related Total Investments 5,156,813 5,173,899 99.78 securities and securities of other mutual funds. Please refer to note 8 in the Other Assets less Liabilities 11,174 0.22 accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 5,185,073 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Abertis Infraestructuras SA 2,750,000 59,273,933 59,579,474 ACE Ltd. 200,000 31,461,406 32,334,832 Activision Blizzard Inc. 950,000 36,778,203 50,881,356 Alphabet Inc. 40,000 28,966,965 43,058,319 Anheuser-Busch InBev NV 450,000 67,931,510 77,399,567 Bank of America Corp. 1,750,000 36,080,300 40,750,605 Brookfield Infrastructure Partners LP 1,850,000 83,773,357 96,903,000 Brookfield Property Partners LP 1,750,000 49,757,882 56,271,186 Cambridge Bond Fund 60,979,505 606,000,000 596,989,355 CGI Group Inc. 1,000,000 34,295,250 55,400,000 Ecolab Inc. 225,000 30,662,490 35,607,748 Extended Stay America Inc. 1,900,000 43,282,515 41,798,686 Franco-Nevada Corp 1,000,000 54,968,788 63,300,000 George Weston Ltd. 500,000 38,651,275 53,470,000 H&R Block Inc. 1,050,000 43,141,869 48,392,252 Keyera Corp. 1,250,000 42,943,361 50,325,000 McKesson Corp. 175,000 47,464,115 47,755,448 PrairieSky Royalty Ltd. 2,150,000 59,901,278 47,128,000 Restaurant Brands International Inc. 697,500 32,955,806 36,095,625 STORE Capital Corp. 1,600,000 43,290,968 51,359,391 Teledyne Technologies Inc. 300,000 38,513,981 36,817,710 Tourmaline Oil Corp. 3,150,000 127,915,816 70,402,500 US Bancorp 1,375,000 63,907,828 81,177,793 Visa Inc. 350,000 34,429,189 37,554,479 Walgreens Boots Alliance Inc. 875,000 89,481,413 103,093,220

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

48 Sun CI Cambridge Cdn Asset Allocation

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Cambridge Cdn Asset Allocation - Estate Series A Sun CI Cambridge Cdn Asset Allocation - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.81 Net asset value, end of period ($)(1) 9.89 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,653,473 Net assets(1) 495 Number of units outstanding(1) 168,518 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.24 Management expense ratio (%)(2) 2.11 Management expense ratio before waivers (%)(2) 3.24 Management expense ratio before waivers (%)(2) 2.11 Portfolio turnover rate (%)(3) 7.53 Portfolio turnover rate (%)(3) 7.53

Sun CI Cambridge Cdn Asset Allocation - Inv Ser A Sun CI Cambridge Cdn Asset Allocation - Inv Ser F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.85 Net asset value, end of period ($)(1) 9.92 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 3,530,609 Net assets(1) 496 Number of units outstanding(1) 358,306 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.80 Management expense ratio (%)(2) 1.68 Management expense ratio before waivers (%)(2) 2.80 Management expense ratio before waivers (%)(2) 1.68 Portfolio turnover rate (%)(3) 7.53 Portfolio turnover rate (%)(3) 7.53

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

49 Sun CI Cambridge Global Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,679,168 Cash 17,368 Receivable for investment units sold 3,301 Subscriptions receivable 250 Distribution receivable from underlying fund - Other receivable 59 1,700,146 Liabilities Current liabilities Bank indebtedness - Redemptions payable 113 Payable for investment units purchased 20,525 Payable for fees & expenses 1,098 21,736 Net Assets Attributable to Holders of Redeemable Units 1,678,410

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund - Net realized gain (loss) on sale of investments (2,015) Change in unrealized appreciation (depreciation) in value of investments (26,372) (28,387) Expenses (note 5) Management fees 13,736 Insurance fees 4,118 Administration fees 3,092 Total operating expenses 20,946 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (49,333)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

50 Sun CI Cambridge Global Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (49,333) Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,840,896 Redemption of Units (113,153) 1,727,743 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,678,410 Net Assets Attributable to Holders of Redeemable Units at end of period 1,678,410

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (49,333) Adjustments for: Net realized gain (loss) on sale of investments 2,015 Change in unrealized appreciation (depreciation) in value of investments 26,372 Purchases of investments (1,779,345) Proceeds from sale of investments 89,014 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (59) Increase (decrease) in fees & expenses payable 1,098 Net Cash provided by (used in) Operating Activities (1,710,238) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,840,646 Redemption of units (113,040) Net Cash provided by (used in) Financing Activities 1,727,606 Net increase (decrease) in cash 17,368 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 17,368 Distribution Income Received -

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

51 Sun CI Cambridge Global Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Cambridge Global Equity Corporate Class (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). This underlying fund's objective is to achieve long-term Cambridge Global Equity Corporate capital growth by investing, directly or indirectly, primarily in equity securities Class, Series I 84,678 1,705,540 1,679,168 of companies located anywhere in the world. Indirect investments may include convertible securities, derivatives, equity-related securities and Total Investments 1,705,540 1,679,168 100.05 securities of other mutual funds. Please refer to note 8 in the accompanying Other Assets less Liabilities (758) (0.05) notes to the financial statements for an explanation of the various risks. Total Net Assets 1,678,410 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Abertis Infraestructuras SA 3,500,000 74,843,598 75,828,422 ACE Ltd. 400,000 63,752,402 64,669,664 Activision Blizzard Inc. 750,000 40,481,698 40,169,492 Alphabet Inc. 60,000 64,089,334 64,587,478 Anheuser-Busch InBev NV 350,000 61,092,183 60,199,663 Apple Inc. 250,000 38,572,002 36,409,547 Bank of America Corp. 2,250,000 53,499,819 52,393,635 Becton Dickinson and Co. 200,000 35,880,871 42,639,917 Computer Sciences Corp. 900,000 39,514,541 40,694,569 Keyera Corp. 768,200 28,219,301 30,927,732 Lions Gate Entertainment Corp. 1,100,000 46,210,145 49,296,437 Lonza Group AG 150,000 22,020,812 33,795,638 McKesson Corp. 250,000 59,068,291 68,222,068 MEDNAX Inc. 300,000 19,940,240 29,744,725 Ono Pharmaceutical Co. Ltd. 150,000 26,542,114 37,452,110 Orbital ATK Inc. 250,000 17,293,910 30,902,802 PPG Industries Inc. 300,000 29,324,985 41,018,333 PrairieSky Royalty Ltd. 1,500,000 37,800,000 32,880,000 Restaurant Brands International Inc. 1,000,000 51,141,355 51,691,456 Southwest Airlines Co. 500,000 21,941,930 29,789,000 Synchrony Financial 1,000,000 41,409,703 42,075,406 Teledyne Technologies Inc. 250,000 25,890,279 30,681,425 Tourmaline Oil Corp. 3,250,000 104,970,789 72,637,500 Visa Inc. 400,000 37,174,105 42,919,405 Walgreens Boots Alliance Inc. 600,000 60,660,733 70,692,494

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

52 Sun CI Cambridge Global Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Cambridge Global Equity - Estate Series A Sun CI Cambridge Global Equity - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.73 Net asset value, end of period ($)(1) 9.80 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,069,414 Net assets(1) 490 Number of units outstanding(1) 109,947 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.62 Management expense ratio (%)(2) 2.49 Management expense ratio before waivers (%)(2) 3.62 Management expense ratio before waivers (%)(2) 2.49 Portfolio turnover rate (%)(3) 9.90 Portfolio turnover rate (%)(3) 9.90

Sun CI Cambridge Global Equity - Investment Series A Sun CI Cambridge Global Equity - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.76 Net asset value, end of period ($)(1) 9.83 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 608,014 Net assets(1) 492 Number of units outstanding(1) 62,308 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.05 Management expense ratio (%)(2) 1.97 Management expense ratio before waivers (%)(2) 3.05 Management expense ratio before waivers (%)(2) 1.97 Portfolio turnover rate (%)(3) 9.90 Portfolio turnover rate (%)(3) 9.90

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

53 Sun CI Cambridge/MFS Canadian Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 214,375 Cash 39,023 Receivable for investment units sold - Subscriptions receivable 7,036 Distribution receivable from underlying fund - Other receivable - 260,434 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 39,022 Payable for fees & expenses 137 39,159 Net Assets Attributable to Holders of Redeemable Units 221,275

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,530 Net realized gain (loss) on sale of investments (8) Change in unrealized appreciation (depreciation) in value of investments (1,457) 65 Expenses (note 5) Management fees 1,313 Insurance fees 988 Administration fees 66 Total operating expenses 2,367 Management fees waived/absorbed by the Manager (7) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (2,295)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

54 Sun CI Cambridge/MFS Canadian Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (2,295) Holder of Redeemable Unit Transactions Proceeds from Units Issued 223,570 Redemption of Units - 223,570 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 221,275 Net Assets Attributable to Holders of Redeemable Units at end of period 221,275

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (2,295) Adjustments for: Net realized gain (loss) on sale of investments 8 Change in unrealized appreciation (depreciation) in value of investments 1,457 Purchases of investments (178,688) Proceeds from sale of investments 1,870 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 137 Net Cash provided by (used in) Operating Activities (177,511) Cash Flows from (used in) Financing Activities Proceeds from units issued 216,534 Redemption of units - Net Cash provided by (used in) Financing Activities 216,534 Net increase (decrease) in cash 39,023 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 39,023 Distribution Income Received 1,530

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

55 Sun CI Cambridge/MFS Canadian Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Cambridge Cambridge Canadian Equity Corporate Canadian Equity Corporate Class as its main investment. Please refer to note 8 Class, Series I 7,747 150,010 149,675 in the accompanying notes to the financial statements for an explanation of Sun Life MFS Canadian Bond the various risks. Fund, Series I 4,769 65,822 64,700

Total Investments 215,832 214,375 96.88 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities 6,900 3.12 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 221,275 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Cambridge Canadian Equity Corporate Class, Series I Brookfield Infrastructure Partners LP 3,275,000 182,162,431 171,544,500 CGI Group Inc. 2,600,000 95,839,884 144,040,000 Tourmaline Oil Corp. 8,500,000 290,972,816 189,975,000 US Bancorp 2,500,000 121,141,801 147,595,988 Walgreens Boots Alliance Inc. 1,750,000 178,824,226 206,186,441 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

56 Sun CI Cambridge/MFS Canadian Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Cambridge/MFS Cdn Bundle - Lifetime Advantage Ser A Sun CI Cambridge/MFS Cdn Bundle - Lifetime Advantage Ser F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.63 Net asset value, end of period ($)(1) 9.71 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 220,789 Net assets(1) 486 Number of units outstanding(1) 22,919 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.08 Management expense ratio (%)(2) 2.95 Management expense ratio before waivers (%)(2) 4.09 Management expense ratio before waivers (%)(2) 2.96 Portfolio turnover rate (%)(3) 2.15 Portfolio turnover rate (%)(3) 2.15

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

57 Sun CI Cambridge/MFS Global Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 472,535 Cash 14,811 Receivable for investment units sold - Subscriptions receivable 2,814 Distribution receivable from underlying fund - Other receivable 201 490,361 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 14,811 Payable for fees & expenses 349 15,160 Net Assets Attributable to Holders of Redeemable Units 475,201

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 3,952 Net realized gain (loss) on sale of investments (13) Change in unrealized appreciation (depreciation) in value of investments (1,651) 2,288 Expenses (note 5) Management fees 3,317 Insurance fees 2,491 Administration fees 166 Total operating expenses 5,974 Management fees waived/absorbed by the Manager (17) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,669)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

58 Sun CI Cambridge/MFS Global Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,669) Holder of Redeemable Unit Transactions Proceeds from Units Issued 478,870 Redemption of Units - 478,870 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 475,201 Net Assets Attributable to Holders of Redeemable Units at end of period 475,201

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (3,669) Adjustments for: Net realized gain (loss) on sale of investments 13 Change in unrealized appreciation (depreciation) in value of investments 1,651 Purchases of investments (462,093) Proceeds from sale of investments 2,705 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (201) Increase (decrease) in fees & expenses payable 349 Net Cash provided by (used in) Operating Activities (461,245) Cash Flows from (used in) Financing Activities Proceeds from units issued 476,056 Redemption of units - Net Cash provided by (used in) Financing Activities 476,056 Net increase (decrease) in cash 14,811 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 14,811 Distribution Income Received 3,952

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

59 Sun CI Cambridge/MFS Global Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Cambridge Cambridge Global Equity Corporate Global Equity Corporate Class as its main investment. Please refer to note 8 in Class, Series I 16,686 329,165 330,891 the accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 10,441 145,021 141,644

Total Investments 474,186 472,535 99.44 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities 2,666 0.56 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 475,201 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Cambridge Global Equity Corporate Class, Series I Abertis Infraestructuras SA 3,500,000 74,843,598 75,828,422 ACE Ltd. 400,000 63,752,402 64,669,664 McKesson Corp. 250,000 59,068,291 68,222,068 Tourmaline Oil Corp. 3,250,000 104,970,789 72,637,500 Walgreens Boots Alliance Inc. 600,000 60,660,733 70,692,494 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

60 Sun CI Cambridge/MFS Global Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Cambridge/MFS Global Bundle - Lifetime Advantage Ser A Sun CI Cambridge/MFS Global Bundle - Lifetime Advantage Ser F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.64 Net asset value, end of period ($)(1) 9.72 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 474,715 Net assets(1) 486 Number of units outstanding(1) 49,229 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.98 Management expense ratio (%)(2) 2.95 Management expense ratio before waivers (%)(2) 3.99 Management expense ratio before waivers (%)(2) 2.96 Portfolio turnover rate (%)(3) 1.19 Portfolio turnover rate (%)(3) 1.19

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

61 Sun CI Signature Diversified Yield II

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 2,850,477 Cash 10,984 Receivable for investment units sold 5,166 Subscriptions receivable 266 Distribution receivable from underlying fund - Other receivable 27 2,866,920 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 16,128 Payable for fees & expenses 1,594 17,722 Net Assets Attributable to Holders of Redeemable Units 2,849,198

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 73,447 Net realized gain (loss) on sale of investments (2,117) Change in unrealized appreciation (depreciation) in value of investments (82,203) (10,873) Expenses (note 5) Management fees 20,062 Insurance fees 4,629 Administration fees 1,871 Total operating expenses 26,562 Management fees waived/absorbed by the Manager (4) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (37,431)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

62 Sun CI Signature Diversified Yield II

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (37,431) Holder of Redeemable Unit Transactions Proceeds from Units Issued 3,007,165 Redemption of Units (120,536) 2,886,629 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 2,849,198 Net Assets Attributable to Holders of Redeemable Units at end of period 2,849,198

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (37,431) Adjustments for: Net realized gain (loss) on sale of investments 2,117 Change in unrealized appreciation (depreciation) in value of investments 82,203 Purchases of investments (3,007,257) Proceeds from sale of investments 83,422 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (27) Increase (decrease) in fees & expenses payable 1,594 Net Cash provided by (used in) Operating Activities (2,875,379) Cash Flows from (used in) Financing Activities Proceeds from units issued 3,006,899 Redemption of units (120,536) Net Cash provided by (used in) Financing Activities 2,886,363 Net increase (decrease) in cash 10,984 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 10,984 Distribution Income Received 73,447

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

63 Sun CI Signature Diversified Yield II

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Signature Diversified Yield II Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The fundamental investment objective of the underlying fund is to Signature Diversified Yield II generate a high level of income through exposure to a portfolio of fixed Fund, Series I 251,365 2,932,680 2,850,477 income and high-yielding equity securities throughout the world. Please refer to note 8 in the accompanying notes to the financial statements for an Total Investments 2,932,680 2,850,477 100.04 explanation of the various risks. Other Assets less Liabilities (1,279) (0.04) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 2,849,198 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Abertis Infraestructuras SA 1,104,320 20,628,091 23,925,384 AltaGas Ltd. 791,985 28,179,852 24,472,337 AT&T Inc. 416,600 15,940,281 19,834,253 British American Tobacco PLC 321,800 21,537,459 24,752,836 Brookfield Office Properties Inc. 693,750 14,244,362 22,307,506 Citigroup Inc. 650,200 40,550,010 46,555,310 Coca-Cola Co. 434,100 19,344,638 25,802,748 Colony Financial Inc. 1,413,700 42,717,937 38,102,907 Ferrovial SA 767,602 14,570,189 24,068,348 Forest City Enterprises Inc. 1,287,895 29,477,112 39,077,879 Fraport AG Frankfurt Airport Services Worldwide 257,068 18,023,791 22,780,232 MacQuarie Atlas Roads Group 4,395,406 11,325,832 18,039,026 Nestle SA 226,400 22,121,322 23,315,219 Pattern Energy Group Inc. 949,639 30,302,696 27,474,163 Potlatch Corp. 599,200 28,114,234 25,070,644 Procter & Gamble Co. 218,800 19,810,628 24,039,997 Retail Opportunity Investments Corp. 804,323 12,542,492 19,920,279 Rouse Properties Inc. 1,650,053 31,546,452 33,240,777 Singapore Telecommunications Ltd. 9,979,500 31,557,019 35,740,195 Sydney Airport 4,143,700 16,542,287 26,532,717 Transurban Group 2,629,824 19,510,498 27,764,704 UBS Group AG 781,200 16,821,660 21,064,806 VEREIT Inc. 3,043,100 33,575,240 33,346,734 Vinci SA 275,650 17,216,086 24,509,774 Weyerhaeuser Co. 636,492 25,496,013 26,401,979

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

64 Sun CI Signature Diversified Yield II

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Signature Diversified Yield II - Estate Series A Sun CI Signature Diversified Yield II - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.52 Net asset value, end of period ($)(1) 9.60 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,637,003 Net assets(1) 480 Number of units outstanding(1) 171,909 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.03 Management expense ratio (%)(2) 1.97 Management expense ratio before waivers (%)(2) 3.03 Management expense ratio before waivers (%)(2) 1.97 Portfolio turnover rate (%)(3) 6.13 Portfolio turnover rate (%)(3) 6.13

Sun CI Signature Diversified Yield II - Investment Series A Sun CI Signature Diversified Yield II - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.55 Net asset value, end of period ($)(1) 9.62 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,056,916 Net assets(1) 481 Number of units outstanding(1) 110,674 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.65 Management expense ratio (%)(2) 1.57 Management expense ratio before waivers (%)(2) 2.65 Management expense ratio before waivers (%)(2) 1.57 Portfolio turnover rate (%)(3) 6.13 Portfolio turnover rate (%)(3) 6.13

Sun CI Signature Diversified Yield II - Lifetime Ad Series A Sun CI Signature Diversified Yield II - Lifetime Ad Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.47 Net asset value, end of period ($)(1) 9.54 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 153,841 Net assets(1) 477 Number of units outstanding(1) 16,248 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.78 Management expense ratio (%)(2) 2.87 Management expense ratio before waivers (%)(2) 3.79 Management expense ratio before waivers (%)(2) 2.88 Portfolio turnover rate (%)(3) 6.13 Portfolio turnover rate (%)(3) 6.13

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

65 Sun CI Signature High Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 6,240,288 Cash 168,037 Receivable for investment units sold - Subscriptions receivable 14,929 Distribution receivable from underlying fund - Other receivable 391 6,423,645 Liabilities Current liabilities Bank indebtedness - Redemptions payable 2,000 Payable for investment units purchased 165,204 Payable for fees & expenses 3,211 170,415 Net Assets Attributable to Holders of Redeemable Units 6,253,230

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 159,599 Net realized gain (loss) on sale of investments (9,066) Change in unrealized appreciation (depreciation) in value of investments (207,786) (57,253) Expenses (note 5) Management fees 43,173 Insurance fees 7,384 Administration fees 4,220 Total operating expenses 54,777 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (112,030)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

66 Sun CI Signature High Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (112,030) Holder of Redeemable Unit Transactions Proceeds from Units Issued 6,609,705 Redemption of Units (244,445) 6,365,260 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 6,253,230 Net Assets Attributable to Holders of Redeemable Units at end of period 6,253,230

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (112,030) Adjustments for: Net realized gain (loss) on sale of investments 9,066 Change in unrealized appreciation (depreciation) in value of investments 207,786 Purchases of investments (6,615,284) Proceeds from sale of investments 323,348 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (391) Increase (decrease) in fees & expenses payable 3,211 Net Cash provided by (used in) Operating Activities (6,184,294) Cash Flows from (used in) Financing Activities Proceeds from units issued 6,594,776 Redemption of units (242,445) Net Cash provided by (used in) Financing Activities 6,352,331 Net increase (decrease) in cash 168,037 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 168,037 Distribution Income Received 159,599

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

67 Sun CI Signature High Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Signature High Income Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets This underlying fund's objective is to generate a high level of income and long- Signature High Income Fund, Series I 485,248 6,448,074 6,240,288 term capital growth. It invests primarily in high-yielding equity securities and Canadian corporate bonds. Please refer to note 8 in the accompanying notes Total Investments 6,448,074 6,240,288 99.79 to the financial statements for an explanation of the various risks. Other Assets less Liabilities 12,942 0.21 Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 6,253,230 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Abertis Infraestructuras SA 3,237,631 50,580,987 70,144,128 Algonquin Power & Utilities Corp. 14,713,640 114,186,559 160,525,812 Allied Properties Real Estate 2,477,260 41,218,776 78,207,098 AltaGas Ltd. 3,665,398 115,678,029 113,260,798 ARC Resources Ltd. 3,489,900 72,144,198 58,281,330 AT&T Inc. 2,107,800 78,406,786 100,351,986 Brookfield Office Properties Inc. 4,199,582 65,456,714 135,037,407 Brookfield Property Partners LP 2,249,700 49,971,232 72,339,022 Canadian Real Estate Investment Trust 2,985,040 74,694,756 125,550,782 Citigroup Inc. 3,080,100 184,550,730 220,539,848 Colony Financial Inc. 3,424,138 103,435,248 92,289,461 Enbridge Inc. 1,607,700 77,330,431 73,954,200 First Capital Realty Inc. 3,396,317 46,990,907 62,322,417 Frontier Communications Corp. 10,446,171 51,542,849 67,497,224 Northland Power Inc. 4,586,000 77,222,823 85,574,760 Pattern Energy Group Inc. 4,032,549 127,780,636 116,666,343 PNC Group Inc. 47,500,000 45,088,867 69,910,930 Singapore Telecommunications Ltd. 51,582,200 133,399,861 184,734,495 Sydney Airport 15,420,587 35,066,736 98,740,272 Telstra Corp. Ltd. 12,047,200 35,963,332 68,150,441 Transurban Group 15,806,062 90,690,729 166,874,528 UBS Group AG 3,556,400 75,328,430 95,897,181 VEREIT Inc. 14,292,698 157,514,073 156,621,471 Weyerhaeuser Co. 2,404,602 96,321,545 99,743,989 Whistler Blackcomb Holdings Inc. 2,733,514 31,551,668 68,201,174

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

68 Sun CI Signature High Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Signature High Income - Estate Series A Sun CI Signature High Income - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.45 Net asset value, end of period ($)(1) 9.51 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,837,394 Net assets(1) 373,888 Number of units outstanding(1) 194,525 Number of units outstanding(1) 39,318 Management expense ratio (%)(2) 3.06 Management expense ratio (%)(2) 1.97 Management expense ratio before waivers (%)(2) 3.06 Management expense ratio before waivers (%)(2) 1.97 Portfolio turnover rate (%)(3) 10.77 Portfolio turnover rate (%)(3) 10.77

Sun CI Signature High Income - Investment Series A Sun CI Signature High Income - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.47 Net asset value, end of period ($)(1) 9.54 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 4,041,471 Net assets(1) 477 Number of units outstanding(1) 426,759 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.67 Management expense ratio (%)(2) 1.57 Management expense ratio before waivers (%)(2) 2.67 Management expense ratio before waivers (%)(2) 1.57 Portfolio turnover rate (%)(3) 10.77 Portfolio turnover rate (%)(3) 10.77

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

69 Sun CI Signature Income & Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 4,212,350 Cash - Receivable for investment units sold 7,002 Subscriptions receivable 328,879 Distribution receivable from underlying fund - Other receivable 239 4,548,470 Liabilities Current liabilities Bank indebtedness 4,396 Redemptions payable 5,000 Payable for investment units purchased 113,841 Payable for fees & expenses 2,385 125,622 Net Assets Attributable to Holders of Redeemable Units 4,422,848

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 106,658 Net realized gain (loss) on sale of investments (3,536) Change in unrealized appreciation (depreciation) in value of investments (196,593) (93,471) Expenses (note 5) Management fees 28,330 Insurance fees 7,297 Administration fees 2,945 Total operating expenses 38,572 Management fees waived/absorbed by the Manager (22) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (132,021)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

70 Sun CI Signature Income & Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (132,021) Holder of Redeemable Unit Transactions Proceeds from Units Issued 4,627,862 Redemption of Units (72,993) 4,554,869 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 4,422,848 Net Assets Attributable to Holders of Redeemable Units at end of period 4,422,848

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (132,021) Adjustments for: Net realized gain (loss) on sale of investments 3,536 Change in unrealized appreciation (depreciation) in value of investments 196,593 Purchases of investments (4,413,218) Proceeds from sale of investments 107,578 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (239) Increase (decrease) in fees & expenses payable 2,385 Net Cash provided by (used in) Operating Activities (4,235,386) Cash Flows from (used in) Financing Activities Proceeds from units issued 4,298,983 Redemption of units (67,993) Net Cash provided by (used in) Financing Activities 4,230,990 Net increase (decrease) in cash (4,396) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (4,396) Distribution Income Received 106,658

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

71 Sun CI Signature Income & Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Signature Income & Growth Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to provide a steady flow of current income Signature Income & Growth while preserving capital by investing in a diversified portfolio of securities Fund, Series I 445,280 4,408,943 4,212,350 composed mainly of equity, equity-related and fixed income securities of Canadian issuers. The underlying fund may also invest in foreign securities. Total Investments 4,408,943 4,212,350 95.24 Please refer to note 8 in the accompanying notes to the financial statements Other Assets less Liabilities 210,498 4.76 for an explanation of the various risks. Total Net Assets 4,422,848 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Alimentation Couche-Tard Inc. 1,105,130 15,371,510 67,313,468 AstraZeneca PLC 641,700 53,249,597 60,426,477 Bristol-Myers Squibb Co. 527,700 43,546,493 50,225,504 Canadian National Railway Co. 775,582 52,418,437 59,991,268 Citigroup Inc. 897,050 45,853,202 64,230,145 Enbridge Inc. 799,300 40,673,616 36,767,800 JPMorgan Chase & Co. 1,434,134 19,525,663 47,007,450 Loblaw Cos. Ltd. 551,700 21,977,615 36,048,078 Manulife Financial Corp. 1,908,120 40,955,078 39,574,409 Nestle SA 357,570 21,438,453 36,823,422 NXP Semiconductors NV 334,600 17,480,321 39,003,874 Power Corp of Canada 1,675,170 51,267,005 48,479,420 Province of Ontario Canada 4.20%, Jun 2, 2020 41,841,000 46,489,316 46,945,848 Province of Quebec Canada 4.50%, Dec 1, 2019 42,038,000 47,585,226 47,249,438 Province of Quebec Canada 4.25%, Dec 1, 2021 31,969,000 35,717,634 36,565,919 Roche Holding AG 118,067 25,568,621 45,079,801 Royal Bank of Canada 2,432,250 167,326,506 180,351,338 Saputo Inc. 1,058,288 22,943,642 35,029,333 Singapore Telecommunications Ltd. 15,414,400 41,269,236 55,204,536 Telstra Corp Ltd. 7,063,125 22,324,043 39,955,764 The Bank of Nova Scotia 3,438,820 210,157,494 192,470,755 The Toronto-Dominion Bank 3,428,470 152,067,365 185,960,213 Total SA 585,300 35,256,702 36,401,570 TransCanada Corp. 757,600 37,911,693 34,235,944 UBS Group AG 1,652,600 33,926,676 44,561,827

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

72 Sun CI Signature Income & Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun CI Signature Income & Growth - Estate Series A Sun CI Signature Income & Growth - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.32 Net asset value, end of period ($)(1) 9.38 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 961,956 Net assets(1) 469 Number of units outstanding(1) 103,191 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.08 Management expense ratio (%)(2) 2.00 Management expense ratio before waivers (%)(2) 3.08 Management expense ratio before waivers (%)(2) 2.00 Portfolio turnover rate (%)(3) 5.56 Portfolio turnover rate (%)(3) 5.56

Sun CI Signature Income & Growth - Investment Series A Sun CI Signature Income & Growth - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.33 Net asset value, end of period ($)(1) 9.40 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,469,424 Net assets(1) 470 Number of units outstanding(1) 264,676 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.72 Management expense ratio (%)(2) 1.67 Management expense ratio before waivers (%)(2) 2.72 Management expense ratio before waivers (%)(2) 1.67 Portfolio turnover rate (%)(3) 5.56 Portfolio turnover rate (%)(3) 5.56

Sun CI Signature Income & Growth - Lifetime Ad Series A Sun CI Signature Income & Growth - Lifetime Ad Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.25 Net asset value, end of period ($)(1) 9.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 990,063 Net assets(1) 466 Number of units outstanding(1) 107,030 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.89 Management expense ratio (%)(2) 2.93 Management expense ratio before waivers (%)(2) 3.90 Management expense ratio before waivers (%)(2) 2.94 Portfolio turnover rate (%)(3) 5.56 Portfolio turnover rate (%)(3) 5.56

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

73 Sun Daily Interest

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) - Cash 6,083,921 Receivable for investment units sold - Subscriptions receivable 3,458 Distribution receivable from underlying fund - Interest receivable 4,235 Other receivable - 6,091,614 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 924 924 Net Assets Attributable to Holders of Redeemable Units 6,090,690

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund - Interest income for distribution purposes 28,008 Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - 28,008 Expenses (note 5) Management fees 15,126 Insurance fees 3,598 Administration fees 6,680 Total operating expenses 25,404 Management fees waived/absorbed by the Manager (3,012) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 5,616

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

74 Sun Daily Interest

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 5,616 Holder of Redeemable Unit Transactions Proceeds from Units Issued 8,647,276 Redemption of Units (2,562,202) 6,085,074 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 6,090,690 Net Assets Attributable to Holders of Redeemable Units at end of period 6,090,690

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 5,616 Adjustments for: Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - Purchases of investments - Proceeds from sale of investments - (Increase) decrease in distribution receivable - (Increase) decrease in interest receivable (4,235) (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 924 Net Cash provided by (used in) Operating Activities 2,305 Cash Flows from (used in) Financing Activities Proceeds from units issued 8,643,818 Redemption of units (2,562,202) Net Cash provided by (used in) Financing Activities 6,081,616 Net increase (decrease) in cash 6,083,921 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 6,083,921 Distribution Income Received - Interest Received 23,773

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

75 Sun Daily Interest

Discussion of Financial Risk Management

Financial Instrument Risk

The investment objective of the Fund is to provide investors with interest income. The Fund is exposed to interest rate risk through its holdings in cash. Any increase in interest rate changes would be immaterial. Please refer to note 8 for an explanation of the management of financial risks.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

76 Sun Daily Interest

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Daily Interest - Estate Series A Sun Daily Interest - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 369,651 Net assets(1) 501 Number of units outstanding(1) 36,930 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.90 Management expense ratio (%)(2) 0.74 Management expense ratio before waivers (%)(2) 0.99 Management expense ratio before waivers (%)(2) 0.84 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Daily Interest - Investment Series A Sun Daily Interest - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,108,924 Net assets(1) 3,336,142 Number of units outstanding(1) 210,795 Number of units outstanding(1) 332,983 Management expense ratio (%)(2) 0.89 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 0.99 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Daily Interest - Lifetime Advantage Series A Sun Daily Interest - Lifetime Advantage Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 49,805 Net assets(1) 501 Number of units outstanding(1) 4,977 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.02 Management expense ratio (%)(2) 0.79 Management expense ratio before waivers (%)(2) 1.12 Management expense ratio before waivers (%)(2) 0.89 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Daily Interest - Protect Series A Sun Daily Interest - Protect Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 224,665 Net assets(1) 501 Number of units outstanding(1) 22,458 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.02 Management expense ratio (%)(2) 0.79 Management expense ratio before waivers (%)(2) 1.12 Management expense ratio before waivers (%)(2) 0.89 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

77 Sun Dollar Cost Average Daily Interest

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) - Cash 8,088,058 Receivable for investment units sold - Subscriptions receivable 126,189 Distribution receivable from underlying fund - Interest receivable 7,069 Other receivable - 8,221,316 Liabilities Current liabilities Bank indebtedness - Redemptions payable 39,986 Payable for investment units purchased - Payable for fees & expenses 1,326 41,312 Net Assets Attributable to Holders of Redeemable Units 8,180,004

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund - Interest income for distribution purposes 43,813 Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - 43,813 Expenses (note 5) Management fees 24,804 Insurance fees 5,899 Administration fees 9,903 Total operating expenses 40,606 Management fees waived/absorbed by the Manager (4,464) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 7,671

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

78 Sun Dollar Cost Average Daily Interest

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 7,671 Holder of Redeemable Unit Transactions Proceeds from Units Issued 13,432,248 Redemption of Units (5,259,915) 8,172,333 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 8,180,004 Net Assets Attributable to Holders of Redeemable Units at end of period 8,180,004

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 7,671 Adjustments for: Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - Purchases of investments - Proceeds from sale of investments - (Increase) decrease in distribution receivable - (Increase) decrease in interest receivable (7,069) (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1,326 Net Cash provided by (used in) Operating Activities 1,928 Cash Flows from (used in) Financing Activities Proceeds from units issued 13,306,059 Redemption of units (5,219,929) Net Cash provided by (used in) Financing Activities 8,086,130 Net increase (decrease) in cash 8,088,058 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 8,088,058 Distribution Income Received - Interest Received 36,744

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

79 Sun Dollar Cost Average Daily Interest

Discussion of Financial Risk Management

Financial Instrument Risk

The investment objective of the Fund is to provide investors with interest income. The Fund is exposed to interest rate risk through its holdings in cash. Any increase in interest rate changes would be immaterial. Please refer to note 8 for an explanation of the management of financial risks.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

80 Sun Dollar Cost Average Daily Interest

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Dollar Cost Average Daily Interest - Estate Series A Sun Dollar Cost Average Daily Interest - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,310,811 Net assets(1) 501 Number of units outstanding(1) 231,024 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.97 Management expense ratio (%)(2) 0.74 Management expense ratio before waivers (%)(2) 1.07 Management expense ratio before waivers (%)(2) 0.84 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Dollar Cost Average Daily Interest - Investment Series A Sun Dollar Cost Average Daily Interest - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,610,332 Net assets(1) 3,336,855 Number of units outstanding(1) 160,927 Number of units outstanding(1) 332,983 Management expense ratio (%)(2) 0.91 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 1.01 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Dollar Cost Average Daily Interest - Lifetime Adv Ser A Sun Dollar Cost Average Daily Interest - Lifetime Adv Ser F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 602,544 Net assets(1) 500 Number of units outstanding(1) 60,249 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.03 Management expense ratio (%)(2) 0.79 Management expense ratio before waivers (%)(2) 1.13 Management expense ratio before waivers (%)(2) 0.89 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Dollar Cost Average Daily Interest - Protect Series A Sun Dollar Cost Average Daily Interest - Protect Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 317,961 Net assets(1) 500 Number of units outstanding(1) 31,772 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.02 Management expense ratio (%)(2) 0.79 Management expense ratio before waivers (%)(2) 1.12 Management expense ratio before waivers (%)(2) 0.89 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

81 Sun Dynamic American Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 193,929 Cash 3,159 Receivable for investment units sold - Subscriptions receivable 50 Distribution receivable from underlying fund - Other receivable 197,138 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 3,159 Payable for fees & expenses 113 3,273 Net Assets Attributable to Holders of Redeemable Units 193,865

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 23,208 Net realized gain (loss) on sale of investments 1,251 Change in unrealized appreciation (depreciation) in value of investments (14,143) 10,316 Expenses (note 5) Management fees 1,061 Insurance fees 160 Administration fees 213 Total operating expenses 1,434 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 8,882

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

82 Sun Dynamic American Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 8,882 Holder of Redeemable Unit Transactions Proceeds from Units Issued 260,869 Redemption of Units (75,886) 184,983 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 193,865 Net Assets Attributable to Holders of Redeemable Units at end of period 193,865

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 8,882 Adjustments for: Net realized gain (loss) on sale of investments (1,251) Change in unrealized appreciation (depreciation) in value of investments 14,143 Purchases of investments (224,566) Proceeds from sale of investments 20,904 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 113 Net Cash provided by (used in) Operating Activities (181,775) Cash Flows from (used in) Financing Activities Proceeds from units issued 260,819 Redemption of units (75,885) Net Cash provided by (used in) Financing Activities 184,934 Net increase (decrease) in cash 3,159 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 3,159 Distribution Income Received 23,208

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

83 Sun Dynamic American Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Dynamic American Value Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund’s investment objective is to seek to achieve long- Sun Life Dynamic American Value term capital appreciation primarily by investing directly in equity securities of Fund, Series I 19,312 208,072 193,929 based businesses deemed to be undervalued relative to their perceived worth or indirectly by investing primarily in the Dynamic American Total Investments 208,072 193,929 100.03 Value Fund the invests in such securities. Please refer to note 8 in the Other Assets less Liabilities (64) (0.03) accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 193,865 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Dynamic American Value Fund, Series O 122,111 1,379,438 1,321,239

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

84 Sun Dynamic American Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Dynamic American Value - Investment Series A Sun Dynamic American Value - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.09 Net asset value, end of period ($)(1) 10.28 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 192,227 Net assets(1) 514 Number of units outstanding(1) 17,339 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.18 Management expense ratio (%)(2) 3.16 Management expense ratio before waivers (%)(2) 3.18 Management expense ratio before waivers (%)(2) 3.16 Portfolio turnover rate (%)(3) 28.96 Portfolio turnover rate (%)(3) 28.96

Sun Dynamic American Value - Investment Series F Sun Dynamic American Value - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.17 Net asset value, end of period ($)(1) 10.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 559 Net assets(1) 515 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.03 Management expense ratio (%)(2) 0.91 Management expense ratio before waivers (%)(2) 2.03 Management expense ratio before waivers (%)(2) 0.91 Portfolio turnover rate (%)(3) 28.96 Portfolio turnover rate (%)(3) 28.96

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

85 Sun Dynamic Equity Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 397,399 Cash - Receivable for investment units sold 637 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 398,036 Liabilities Current liabilities Bank indebtedness 335 Redemptions payable 1 Payable for investment units purchased 280 Payable for fees & expenses 216 832 Net Assets Attributable to Holders of Redeemable Units 397,204

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 18,847 Net realized gain (loss) on sale of investments 990 Change in unrealized appreciation (depreciation) in value of investments (19,225) 612 Expenses (note 5) Management fees 3,167 Insurance fees 534 Administration fees 205 Total operating expenses 3,906 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,294)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

86 Sun Dynamic Equity Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,294) Holder of Redeemable Unit Transactions Proceeds from Units Issued 400,500 Redemption of Units (2) 400,498 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 397,204 Net Assets Attributable to Holders of Redeemable Units at end of period 397,204

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (3,294) Adjustments for: Net realized gain (loss) on sale of investments (990) Change in unrealized appreciation (depreciation) in value of investments 19,225 Purchases of investments (493,680) Proceeds from sale of investments 77,689 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 216 Net Cash provided by (used in) Operating Activities (400,834) Cash Flows from (used in) Financing Activities Proceeds from units issued 400,500 Redemption of units (1) Net Cash provided by (used in) Financing Activities 400,499 Net increase (decrease) in cash (335) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (335) Distribution Income Received 18,847

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

87 Sun Dynamic Equity Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Dynamic Equity Income Class (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund’s investment objective is to seek to achieve Sun Life Dynamic Equity Income income and long-term capital growth through exposure to primarily equity Class, Series I 42,222 416,624 397,399 securities that pay a dividend or distribution by investing primarily in units of the Sun Life Dynamic Equity Income Fund or its successor fund (the Total Investments 416,624 397,399 100.05 "underlying trust fund"). Please refer to note 8 in the accompanying notes to Other Assets less Liabilities (195) (0.05) the financial statements for an explanation of the various risks. Total Net Assets 397,204 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Dynamic Equity Income Fund, Series O 2,979,345 20,163,112 19,782,852

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

88 Sun Dynamic Equity Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Dynamic Equity Income - Estate Series A Sun Dynamic Equity Income - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.68 Net asset value, end of period ($)(1) 9.82 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 48,607 Net assets(1) 491 Number of units outstanding(1) 5,024 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.28 Management expense ratio (%)(2) 3.26 Management expense ratio before waivers (%)(2) 3.28 Management expense ratio before waivers (%)(2) 3.26 Portfolio turnover rate (%)(3) 38.73 Portfolio turnover rate (%)(3) 38.73

Sun Dynamic Equity Income - Estate Series F Sun Dynamic Equity Income - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.77 Net asset value, end of period ($)(1) 9.85 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 488 Net assets(1) 491 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.15 Management expense ratio (%)(2) 1.00 Management expense ratio before waivers (%)(2) 2.15 Management expense ratio before waivers (%)(2) 1.00 Portfolio turnover rate (%)(3) 38.73 Portfolio turnover rate (%)(3) 38.73

Sun Dynamic Equity Income - Investment Series A Sun Dynamic Equity Income - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.72 Net asset value, end of period ($)(1) 9.82 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 345,654 Net assets(1) 491 Number of units outstanding(1) 35,571 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.84 Management expense ratio (%)(2) 2.84 Management expense ratio before waivers (%)(2) 2.84 Management expense ratio before waivers (%)(2) 2.84 Portfolio turnover rate (%)(3) 38.73 Portfolio turnover rate (%)(3) 38.73

Sun Dynamic Equity Income - Investment Series F Sun Dynamic Equity Income - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.79 Net asset value, end of period ($)(1) 9.85 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 490 Net assets(1) 492 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.70 Management expense ratio (%)(2) 0.58 Management expense ratio before waivers (%)(2) 1.70 Management expense ratio before waivers (%)(2) 0.58 Portfolio turnover rate (%)(3) 38.73 Portfolio turnover rate (%)(3) 38.73

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

89 Sun Dynamic Strategic Yield

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,268,928 Cash - Receivable for investment units sold 1,551 Subscriptions receivable 107 Distribution receivable from underlying fund - Other receivable - 1,270,586 Liabilities Current liabilities Bank indebtedness 1,551 Redemptions payable 225 Payable for investment units purchased - Payable for fees & expenses 620 2,396 Net Assets Attributable to Holders of Redeemable Units 1,268,190

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 44,429 Net realized gain (loss) on sale of investments 28 Change in unrealized appreciation (depreciation) in value of investments (22,794) 21,663 Expenses (note 5) Management fees 6,934 Insurance fees 1,716 Administration fees 362 Total operating expenses 9,012 Management fees waived/absorbed by the Manager (522) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,173

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

90 Sun Dynamic Strategic Yield

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,173 Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,602,168 Redemption of Units (347,151) 1,255,017 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,268,190 Net Assets Attributable to Holders of Redeemable Units at end of period 1,268,190

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 13,173 Adjustments for: Net realized gain (loss) on sale of investments (28) Change in unrealized appreciation (depreciation) in value of investments 22,794 Purchases of investments (1,304,963) Proceeds from sale of investments 11,718 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 620 Net Cash provided by (used in) Operating Activities (1,256,686) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,602,061 Redemption of units (346,926) Net Cash provided by (used in) Financing Activities 1,255,135 Net increase (decrease) in cash (1,551) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (1,551) Distribution Income Received 44,429

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

91 Sun Dynamic Strategic Yield

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Dynamic Strategic Yield Class (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund’s investment objective is to seek to achieve Sun Life Dynamic Strategic Yield income and long-term capital growth through exposure to primarily a Class, Series I 126,633 1,291,722 1,268,928 diversified portfolio of fixed income and income-oriented equity securities by investing primarily in units of the Sun Life Dynamic Strategic Yield Fund or its Total Investments 1,291,722 1,268,928 100.06 successor fund (the "underlying trust fund"). Please refer to note 8 in the Other Assets less Liabilities (738) (0.06) accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 1,268,190 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Trust Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Automatic Data Processing Inc. 16,600 1,742,418 1,953,565 Bank of America Corporation 77,300 1,687,855 1,807,164 Becton Dickinson and Co. 8,300 1,504,868 1,776,587 Brookfield Infrastructure Partners LP 33,101 1,744,565 1,733,830 Cash 36,760,692 Citigroup Inc. 25,300 1,785,339 1,818,715 CVS Caremark Corp. 18,300 2,486,784 2,485,367 Dynamic Credit Spectrum Fund, Series O 425,846 4,067,118 3,815,584 Dynamic High Yield Bond Fund, Series O 1,193,782 4,077,460 3,748,475 Dynamic Premium Yield Fund, Series O 840,464 9,493,136 9,245,099 Honeywell International Inc. 12,800 1,707,744 1,841,526 Innergex Renewable Energy Inc. 153,000 1,662,482 1,733,490 JPMorgan Chase & Co. 26,000 2,230,950 2,384,781 Manulife Financial Corp. 137,600 2,931,504 2,853,824 NextEra Energy Inc. 17,200 2,305,523 2,482,196 NIKE Inc. 24,400 1,850,531 2,118,379 Pfizer Inc. 39,300 1,743,085 1,762,219 Royal Bank of Canada 48,400 3,569,419 3,588,860 TELUS Corp. 54,500 2,334,381 2,085,170 The TJX Companies Inc. 19,000 1,754,931 1,871,522 The Toronto-Dominion Bank 0.83%, Aug 4, 2016 1,990,000 1,977,722 1,977,722 TransCanada Corporation 46,700 2,121,300 2,110,373 United States Treasury Note 0.88%, Jan 31, 2017 3,440,000 4,771,508 4,779,917 Verizon Communications Inc. 28,500 1,742,604 1,829,821 Wells Fargo & Co. 47,000 3,347,120 3,549,042

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

92 Sun Dynamic Strategic Yield

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Dynamic Strategic Yield - Estate Series A Sun Dynamic Strategic Yield - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.18 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 557,640 Net assets(1) 78,964 Number of units outstanding(1) 54,782 Number of units outstanding(1) 7,827 Management expense ratio (%)(2) 3.00 Management expense ratio (%)(2) 3.00 Management expense ratio before waivers (%)(2) 3.17 Management expense ratio before waivers (%)(2) 3.17 Portfolio turnover rate (%)(3) 2.33 Portfolio turnover rate (%)(3) 2.33

Sun Dynamic Strategic Yield - Estate Series F Sun Dynamic Strategic Yield - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.26 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 513 Net assets(1) 126,647 Number of units outstanding(1) 50 Number of units outstanding(1) 12,521 Management expense ratio (%)(2) 1.88 Management expense ratio (%)(2) 0.93 Management expense ratio before waivers (%)(2) 2.05 Management expense ratio before waivers (%)(2) 0.93 Portfolio turnover rate (%)(3) 2.33 Portfolio turnover rate (%)(3) 2.33

Sun Dynamic Strategic Yield - Investment Series A Sun Dynamic Strategic Yield - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.21 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 445,766 Net assets(1) 57,640 Number of units outstanding(1) 43,653 Number of units outstanding(1) 5,710 Management expense ratio (%)(2) 2.57 Management expense ratio (%)(2) 2.57 Management expense ratio before waivers (%)(2) 2.74 Management expense ratio before waivers (%)(2) 2.74 Portfolio turnover rate (%)(3) 2.33 Portfolio turnover rate (%)(3) 2.33

Sun Dynamic Strategic Yield - Investment Series F Sun Dynamic Strategic Yield - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.29 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 515 Net assets(1) 505 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.43 Management expense ratio (%)(2) 0.48 Management expense ratio before waivers (%)(2) 1.60 Management expense ratio before waivers (%)(2) 0.48 Portfolio turnover rate (%)(3) 2.33 Portfolio turnover rate (%)(3) 2.33

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

93 Sun Estate Settlement

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) - Cash 3,339,958 Receivable for investment units sold - Subscriptions receivable - Distribution receivable from underlying fund - Interest receivable 3,063 Other receivable - 3,343,021 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 442 442 Net Assets Attributable to Holders of Redeemable Units 3,342,579

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund - Interest income for distribution purposes 24,709 Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - 24,709 Expenses (note 5) Management fees 10,170 Insurance fees 2,521 Administration fees 5,042 Total operating expenses 17,733 Management fees waived/absorbed by the Manager (2,301) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 9,277

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

94 Sun Estate Settlement

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 9,277 Holder of Redeemable Unit Transactions Proceeds from Units Issued 4,205,822 Redemption of Units (872,520) 3,333,302 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 3,342,579 Net Assets Attributable to Holders of Redeemable Units at end of period 3,342,579

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 9,277 Adjustments for: Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - Purchases of investments - Proceeds from sale of investments - (Increase) decrease in distribution receivable - (Increase) decrease in interest receivable (3,063) (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 442 Net Cash provided by (used in) Operating Activities 6,656 Cash Flows from (used in) Financing Activities Proceeds from units issued 4,205,822 Redemption of units (872,520) Net Cash provided by (used in) Financing Activities 3,333,302 Net increase (decrease) in cash 3,339,958 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 3,339,958 Distribution Income Received - Interest Received 21,646

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

95 Sun Estate Settlement

Discussion of Financial Risk Management

Financial Instrument Risk

The investment objective of the Fund is to provide investors with interest income. The Fund is exposed to interest rate risk through its holdings in cash. Any increase in interest rate changes would be immaterial. Please refer to note 8 for an explanation of the management of financial risks.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

96 Sun Estate Settlement

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Estate Settlement - Estate Series A Sun Estate Settlement - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.19 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 509 Net assets(1) 501 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.92 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 1.02 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Estate Settlement - Income Series A Sun Estate Settlement - Income Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 501 Net assets(1) 501 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.91 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 1.01 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Estate Settlement - Investment Series A Sun Estate Settlement - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.99 Net asset value, end of period ($)(1) 10.03 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 3,338,065 Number of units outstanding(1) 50 Number of units outstanding(1) 332,883 Management expense ratio (%)(2) 0.42 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 1.02 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

Sun Estate Settlement - Lifetime Advantage Series A Sun Estate Settlement - Lifetime Advantage Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 501 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.91 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 1.01 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

97 Sun Estate Settlement

Financial Highlights (Continued)

Sun Estate Settlement - Protect Series A Sun Estate Settlement - Protect Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 501 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.78 Management expense ratio (%)(2) 0.69 Management expense ratio before waivers (%)(2) 1.01 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) - Portfolio turnover rate (%)(3) -

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

98 Sun Fidelity Floating Rate High Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 444,807 Cash 2,785 Receivable for investment units sold 403 Subscriptions receivable 4,240 Distribution receivable from underlying fund - Other receivable - 452,235 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 3,103 Payable for fees & expenses 220 3,323 Net Assets Attributable to Holders of Redeemable Units 448,912

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 14,640 Net realized gain (loss) on sale of investments 4,292 Change in unrealized appreciation (depreciation) in value of investments 7,341 26,273 Expenses (note 5) Management fees 3,986 Insurance fees 703 Administration fees 1,117 Total operating expenses 5,806 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 20,467

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

99 Sun Fidelity Floating Rate High Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 20,467 Holder of Redeemable Unit Transactions Proceeds from Units Issued 807,438 Redemption of Units (378,993) 428,445 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 448,912 Net Assets Attributable to Holders of Redeemable Units at end of period 448,912

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 20,467 Adjustments for: Net realized gain (loss) on sale of investments (4,292) Change in unrealized appreciation (depreciation) in value of investments (7,341) Purchases of investments (816,535) Proceeds from sale of investments 386,061 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 220 Net Cash provided by (used in) Operating Activities (421,420) Cash Flows from (used in) Financing Activities Proceeds from units issued 803,198 Redemption of units (378,993) Net Cash provided by (used in) Financing Activities 424,205 Net increase (decrease) in cash 2,785 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 2,785 Distribution Income Received 14,640

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

100 Sun Fidelity Floating Rate High Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fidelity Floating Rate High Income Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund aims to provide a steady flow of Fidelity Floating Rate High Income income. It invests primarily in floating rate debt instruments and other floating Fund, Series O 35,903 437,466 444,807 rate securities of issuers located in the United States or that are denominated in U.S. dollars. Please refer to note 8 in the accompanying notes to the Total Investments 437,466 444,807 99.09 financial statements for an explanation of the various risks. Other Assets less Liabilities 4,105 0.91 Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 448,912 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Albertsons, Aug 25, 2021 1,731,913 2,451,698 2,418,055 Altice Financing, Jun 24, 2019 1,565,395 2,222,013 2,205,592 Blue Coat, May 19, 2022 1,065,000 1,509,561 1,467,922 Burger King, Dec 12, 2021 1,132,734 1,619,226 1,601,712 Caesars Growth, May 8, 2021 2,208,875 3,073,931 2,659,534 Charter Comm, Jul 1, 2020 978,672 1,388,569 1,368,550 Coinmach, Nov 14, 2019 1,329,253 1,894,427 1,804,081 Community Health, Jan 27, 2021 1,413,394 2,017,458 1,931,577 Datapipe, Mar 15, 2019 982,511 1,400,486 1,375,265 Dell, Apr 29, 2020 1,742,185 2,480,209 2,470,429 Dtz World, Nov 4, 2021 990,025 1,392,257 1,371,649 First Data, July 10, 2022 2,000,000 2,833,985 2,806,144 Grifols Usd, Feb 27, 2021 982,500 1,388,688 1,394,832 Infor Global, Jun 3, 2020 1,260,560 1,804,766 1,691,719 Intelsat Jackson, Jun 30, 2019 1,325,000 1,866,272 1,799,955 Jc Penney Re, May 22, 2018 1,959,805 2,761,394 2,737,380 Laureate Edu, Jun 16, 2018 1,956,731 2,792,465 2,181,822 Light Tower, Apr 11, 2020 1,175,454 1,673,757 1,636,241 Mcgraw Hill School, Dec 18, 2019 980,000 1,385,155 1,385,155 Petsmart Inc, Mar 11, 2022 995,000 1,422,337 1,369,478 Sears, Jun 30, 2018 1,173,578 1,665,978 1,559,622 Springer Sci, Aug 15, 2020 992,500 1,416,992 1,353,823 Transdigm, Feb 28, 2020 1,307,007 1,867,322 1,818,431 Us Renal, Dec 31, 2022 1,000,000 1,413,423 1,408,069 Valeant Pharm, Aug 5, 2020 1,000,000 1,423,426 1,359,170

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

101 Sun Fidelity Floating Rate High Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fidelity Floating Rate High Income - Estate Series A Sun Fidelity Floating Rate High Income - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.89 Net asset value, end of period ($)(1) 10.93 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 345,289 Net assets(1) 546 Number of units outstanding(1) 31,720 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.68 Management expense ratio (%)(2) 2.11 Management expense ratio before waivers (%)(2) 2.68 Management expense ratio before waivers (%)(2) 2.11 Portfolio turnover rate (%)(3) 127.69 Portfolio turnover rate (%)(3) 127.69

Sun Fidelity Floating Rate High Income - Investment Series A Sun Fidelity Floating Rate High Income - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.94 Net asset value, end of period ($)(1) 10.95 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 102,530 Net assets(1) 547 Number of units outstanding(1) 9,374 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.33 Management expense ratio (%)(2) 1.77 Management expense ratio before waivers (%)(2) 2.33 Management expense ratio before waivers (%)(2) 1.77 Portfolio turnover rate (%)(3) 127.69 Portfolio turnover rate (%)(3) 127.69

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

102 Sun Fidelity Income Allocation

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 4,495,199 Cash - Receivable for investment units sold 8,709 Subscriptions receivable 2,468 Distribution receivable from underlying fund - Other receivable - 4,506,376 Liabilities Current liabilities Bank indebtedness 8,653 Redemptions payable 500 Payable for investment units purchased 40 Payable for fees & expenses 2,523 11,716 Net Assets Attributable to Holders of Redeemable Units 4,494,660

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 135,323 Net realized gain (loss) on sale of investments (42) Change in unrealized appreciation (depreciation) in value of investments (91,514) 43,767 Expenses (note 5) Management fees 20,778 Insurance fees 5,995 Administration fees 3,039 Total operating expenses 29,812 Management fees waived/absorbed by the Manager (16) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,971

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

103 Sun Fidelity Income Allocation

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,971 Holder of Redeemable Unit Transactions Proceeds from Units Issued 4,564,101 Redemption of Units (83,412) 4,480,689 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 4,494,660 Net Assets Attributable to Holders of Redeemable Units at end of period 4,494,660

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 13,971 Adjustments for: Net realized gain (loss) on sale of investments 42 Change in unrealized appreciation (depreciation) in value of investments 91,514 Purchases of investments (4,677,727) Proceeds from sale of investments 82,303 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 2,523 Net Cash provided by (used in) Operating Activities (4,487,374) Cash Flows from (used in) Financing Activities Proceeds from units issued 4,561,633 Redemption of units (82,912) Net Cash provided by (used in) Financing Activities 4,478,721 Net increase (decrease) in cash (8,653) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (8,653) Distribution Income Received 135,323

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

104 Sun Fidelity Income Allocation

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fidelity Income Allocation Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund aims to achieve a high total investment return. It invests Fidelity Income Allocation primarily in investment grade fixed income securities, higher yielding lower Fund, Series O 302,158 4,586,713 4,495,199 quality fixed income securities, equity securities of companies that pay or are expected to pay dividends, and other securities that are Total Investments 4,586,713 4,495,199 100.01 expected to distribute income. Please refer to note 8 in the accompanying Other Assets less Liabilities (539) (0.01) notes to the financial statements for an explanation of the various risks. Total Net Assets 4,494,660 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Canadian Natural Resources Ltd. 337,000 10,172,000 10,184,140 Cash and Cash Equivalents 92,681,000 CGI Group, Inc. 227,500 8,176,000 12,603,500 Empire Co. Ltd 449,000 10,633,000 11,557,260 Encana Corp 1,545,000 14,266,000 10,861,350 Fairfax Financial Holdings Ltd. 22,600 10,145,000 14,846,166 Fidelity American High Yield Currency Neutral Fund, Series O 7,819,484 71,873,000 66,019,121 Fidelity American High Yield Fund, Series O 27,784,523 217,393,000 254,397,870 Fidelity Canadian Bond Fund, Series O 100,749,032 1,428,610,000 1,451,793,554 Fidelity Canadian Focused Equity Investment Trust, Series O 12,191,264 124,272,000 123,577,966 Fidelity Emerging Markets Debt Trust, Series O 4,792,382 51,635,000 57,244,522 Fidelity Emerging Markets Equity Investment Trust, Series O 4,433,490 57,262,000 55,444,788 Fidelity Floating Rate High Trust, Series O 2,241,064 23,756,000 27,893,854 Fidelity Fund 17,602,906 275,297,000 292,408,920 Fidelity U.S. All Cap Fund, Series O 2,759,393 38,904,000 45,338,490 Government of Canada 1.25%, Dec 1, 2047 74,000,000 88,470,055 89,215,140 IBM Corp 56,800 11,009,000 10,816,128 King Digital Entertainment Plc 448,000 10,618,000 11,083,769 Metro, Inc. 265,200 3,858,000 10,273,848 Open Text Corp 177,000 7,080,000 11,742,180 Pepco Holdings, Inc. 369,000 11,175,000 13,280,324 Precision Castparts Corp. 37,000 11,257,000 11,878,193 Rogers Commnuications Inc 231,000 9,823,000 11,023,320 Silver Wheaton Corp 767,000 15,214,000 13,192,400 Toronto-Dominion Bank 335,000 15,214,000 18,170,400

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

105 Sun Fidelity Income Allocation

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fidelity Income Allocation - Estate Series A Sun Fidelity Income Allocation - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 872,699 Net assets(1) 1,007,550 Number of units outstanding(1) 87,186 Number of units outstanding(1) 99,820 Management expense ratio (%)(2) 3.13 Management expense ratio (%)(2) 2.00 Management expense ratio before waivers (%)(2) 3.13 Management expense ratio before waivers (%)(2) 2.00 Portfolio turnover rate (%)(3) 4.89 Portfolio turnover rate (%)(3) 4.89

Sun Fidelity Income Allocation - Investment Series A Sun Fidelity Income Allocation - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.04 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,819,176 Net assets(1) 506 Number of units outstanding(1) 181,225 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.80 Management expense ratio (%)(2) 1.67 Management expense ratio before waivers (%)(2) 2.80 Management expense ratio before waivers (%)(2) 1.67 Portfolio turnover rate (%)(3) 4.89 Portfolio turnover rate (%)(3) 4.89

Sun Fidelity Income Allocation - Lifetime Adv Series A Sun Fidelity Income Allocation - Lifetime Adv Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.94 Net asset value, end of period ($)(1) 10.04 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 794,227 Net assets(1) 502 Number of units outstanding(1) 79,866 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.12 Management expense ratio (%)(2) 2.93 Management expense ratio before waivers (%)(2) 4.13 Management expense ratio before waivers (%)(2) 2.94 Portfolio turnover rate (%)(3) 4.89 Portfolio turnover rate (%)(3) 4.89

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

106 Sun Fidelity Monthly Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 3,694,325 Cash 174,072 Receivable for investment units sold - Subscriptions receivable 391,886 Distribution receivable from underlying fund - Other receivable - 4,260,283 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 274,072 Payable for fees & expenses 2,075 276,147 Net Assets Attributable to Holders of Redeemable Units 3,984,136

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 79,822 Net realized gain (loss) on sale of investments 21 Change in unrealized appreciation (depreciation) in value of investments (64,762) 15,081 Expenses (note 5) Management fees 17,005 Insurance fees 5,135 Administration fees 2,194 Total operating expenses 24,334 Management fees waived/absorbed by the Manager (17) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (9,236)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

107 Sun Fidelity Monthly Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (9,236) Holder of Redeemable Unit Transactions Proceeds from Units Issued 4,181,528 Redemption of Units (188,156) 3,993,372 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 3,984,136 Net Assets Attributable to Holders of Redeemable Units at end of period 3,984,136

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (9,236) Adjustments for: Net realized gain (loss) on sale of investments (21) Change in unrealized appreciation (depreciation) in value of investments 64,762 Purchases of investments (3,495,049) Proceeds from sale of investments 10,055 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 2,075 Net Cash provided by (used in) Operating Activities (3,427,414) Cash Flows from (used in) Financing Activities Proceeds from units issued 3,789,642 Redemption of units (188,156) Net Cash provided by (used in) Financing Activities 3,601,486 Net increase (decrease) in cash 174,072 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 174,072 Distribution Income Received 79,822

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

108 Sun Fidelity Monthly Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fidelity Monthly Income Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund aims to achieve a combination of a steady flow of income Fidelity Monthly Income Fund, Series O 295,255 3,759,087 3,694,325 and the potential for capital gains. It invests primarily in a mix of Canadian equity securities, Canadian fixed income securities, U.S. commercial mortgage- Total Investments 3,759,087 3,694,325 92.73 backed securities, U.S. higher yielding, lower quality fixed income securities, Other Assets less Liabilities 289,811 7.27 preferred stocks and convertible securities. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the Total Net Assets 3,984,136 100.00 various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). Alstom SA 2,050,000 83,428,202 86,823,084 Biomed Realty Trust Inc. 2,590,000 83,739,214 84,899,819 Canadian Natural Resources Ltd. 3,215,000 97,366,863 97,157,300 CGI Group Inc. 2,176,500 71,624,301 120,578,100 Empire Co. Ltd. 4,270,000 94,153,060 109,909,800 Encana Corp. 14,660,000 135,262,117 103,059,800 Fairfax Financial Holdings Ltd. 214,700 82,476,417 141,038,577 Fidelity American High Yield Fund, Series O 139,458,272 1,032,923,073 1,276,893,884 Fidelity Canadian Bond Fund, Series O 220,285,902 3,068,880,439 3,174,319,846 Fidelity Convertible Securities Investment Trust, Series O 50,608,107 559,859,214 630,673,164 Fidelity Emerging Markets Debt Investment Trust, Series O 51,019,634 537,279,197 609,424,430 Fidelity Floating Rate High Investment Trust, Series O 10,086,169 104,809,379 125,539,523 Fidelity High Income Commercial Real Estate Investment Trust, Series O 21,014,973 224,435,158 298,713,125 Fidelity Income Trust Fund 118,244,775 1,661,338,145 1,964,211,258 Government of Canada 3.50%, Dec 1, 2045 194,000,000 266,711,010 251,647,100 IBM Corp. 539,000 136,068,354 102,638,964 King Digital Entertainment PLC 4,270,000 105,152,226 105,642,174 Metro Inc. 3,737,400 50,884,077 144,786,876 Open Text Corporation 1,685,000 59,948,935 111,782,900 Pepco Holdings Inc. 3,500,000 133,357,200 125,965,130 Precision Castparts Corp. 351,000 111,803,253 112,682,315 Rogers Communication Inc. 2,270,700 95,591,654 108,357,804 Silver Wheaton Corp. 7,350,700 147,259,793 126,432,040 SNC-Lavalin Grp Inc. 2,210,000 86,573,720 90,875,200 The Toronto-Dominion Bank 3,270,900 155,888,618 177,413,616

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

109 Sun Fidelity Monthly Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fidelity Monthly Income - Estate Series A Sun Fidelity Monthly Income - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.79 Net asset value, end of period ($)(1) 9.87 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 952,738 Net assets(1) 251,407 Number of units outstanding(1) 97,311 Number of units outstanding(1) 25,464 Management expense ratio (%)(2) 3.20 Management expense ratio (%)(2) 2.07 Management expense ratio before waivers (%)(2) 3.20 Management expense ratio before waivers (%)(2) 2.07 Portfolio turnover rate (%)(3) 0.78 Portfolio turnover rate (%)(3) 0.78

Sun Fidelity Monthly Income - Investment Series A Sun Fidelity Monthly Income - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.82 Net asset value, end of period ($)(1) 9.90 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,467,384 Net assets(1) 495 Number of units outstanding(1) 149,383 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.80 Management expense ratio (%)(2) 1.68 Management expense ratio before waivers (%)(2) 2.80 Management expense ratio before waivers (%)(2) 1.68 Portfolio turnover rate (%)(3) 0.78 Portfolio turnover rate (%)(3) 0.78

Sun Fidelity Monthly Income - Lifetime Advantage Series A Sun Fidelity Monthly Income - Lifetime Advantage Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.75 Net asset value, end of period ($)(1) 9.82 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,311,621 Net assets(1) 491 Number of units outstanding(1) 134,555 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.82 Management expense ratio (%)(2) 2.93 Management expense ratio before waivers (%)(2) 3.83 Management expense ratio before waivers (%)(2) 2.94 Portfolio turnover rate (%)(3) 0.78 Portfolio turnover rate (%)(3) 0.78

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

110 Sun Fidelity NorthStar

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,155,987 Cash 87,467 Receivable for investment units sold 2,011 Subscriptions receivable 3,477 Distribution receivable from underlying fund - Other receivable - 1,248,942 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 89,423 Payable for fees & expenses 671 90,094 Net Assets Attributable to Holders of Redeemable Units 1,158,848

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 59,234 Net realized gain (loss) on sale of investments 119 Change in unrealized appreciation (depreciation) in value of investments (16,611) 42,742 Expenses (note 5) Management fees 6,351 Insurance fees 953 Administration fees 1,843 Total operating expenses 9,147 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 33,595

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

111 Sun Fidelity NorthStar

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 33,595 Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,156,924 Redemption of Units (31,671) 1,125,253 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,158,848 Net Assets Attributable to Holders of Redeemable Units at end of period 1,158,848

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 33,595 Adjustments for: Net realized gain (loss) on sale of investments (119) Change in unrealized appreciation (depreciation) in value of investments 16,611 Purchases of investments (1,121,496) Proceeds from sale of investments 36,429 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 671 Net Cash provided by (used in) Operating Activities (1,034,309) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,153,447 Redemption of units (31,671) Net Cash provided by (used in) Financing Activities 1,121,776 Net increase (decrease) in cash 87,467 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 87,467 Distribution Income Received 59,234

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

112 Sun Fidelity NorthStar

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fidelity NorthStar Fund (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets underlying fund aims to achieve long-term capital growth. It invests primarily Fidelity NorthStar Fund, Series O 35,795 1,172,598 1,155,987 in equity securities of companies anywhere in the world. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of Total Investments 1,172,598 1,155,987 99.75 the various risks. Other Assets less Liabilities 2,861 0.25 Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 1,158,848 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Alstom SA 900,000 36,618,232 38,117,451 Anthem Inc. 1,650,000 155,649,470 318,356,161 Bed Bath & Beyond Inc. 850,000 71,237,213 56,748,996 Cleco Corp. 800,000 60,518,550 57,794,382 Dongbu Insurance 500,000 30,536,692 41,298,958 Eni SpA 3,000,000 82,684,224 61,677,874 Fossil Group Inc. 1,229,201 87,075,035 62,182,909 Gamestop Corp. 1,100,000 57,621,688 42,678,843 Gilead Sciences Inc. 275,000 41,350,827 38,504,566 Hewlett Packard Enterprise Co. 2,000,000 41,151,238 42,064,480 Hon Hai Precision Ind Co. Ltd. 20,580,000 48,310,583 69,544,502 Hyundai Mobis 350,000 99,939,210 101,095,183 IBM Corp. 500,000 123,401,997 95,212,397 Johnson & Johnson 1,100,000 145,354,404 156,347,030 Lifestyle International Holdings Ltd. 30,500,000 72,194,934 56,283,875 Next PLC 247,800 9,872,432 36,849,125 NN Group 1,600,000 50,687,890 78,314,570 Ottogi Corp. 269,000 44,905,864 384,858,950 Pepco Holdings Inc. 2,525,000 94,262,247 90,874,843 Qualcomm Inc. 575,000 47,544,986 39,769,441 Rolls-Royce Holdings PLC 4,000,000 61,984,056 46,882,093 Seaboard Corp. 13,200 24,544,818 52,871,963 Seria Co. Ltd. 2,847,600 5,352,659 190,868,170 Usana Health Sciences Inc. 300,000 11,255,288 53,030,303 Wal Mart Stores Inc. 2,000,000 180,982,060 169,641,620

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

113 Sun Fidelity NorthStar

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fidelity NorthStar - Investment Series A Sun Fidelity NorthStar - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.16 Net asset value, end of period ($)(1) 11.25 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,158,286 Net assets(1) 562 Number of units outstanding(1) 103,759 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.23 Management expense ratio (%)(2) 2.13 Management expense ratio before waivers (%)(2) 3.23 Management expense ratio before waivers (%)(2) 2.13 Portfolio turnover rate (%)(3) 8.11 Portfolio turnover rate (%)(3) 8.11

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

114 Sun Fidelity True North

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,954,542 Cash 1,678 Receivable for investment units sold 3,907 Subscriptions receivable 50 Distribution receivable from underlying fund - Other receivable - 1,960,177 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 5,580 Payable for fees & expenses 1,169 6,749 Net Assets Attributable to Holders of Redeemable Units 1,953,428

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 107,110 Net realized gain (loss) on sale of investments (540) Change in unrealized appreciation (depreciation) in value of investments (143,087) (36,517) Expenses (note 5) Management fees 10,496 Insurance fees 3,101 Administration fees 2,821 Total operating expenses 16,418 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (52,935)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

115 Sun Fidelity True North

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (52,935) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,091,086 Redemption of Units (84,723) 2,006,363 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,953,428 Net Assets Attributable to Holders of Redeemable Units at end of period 1,953,428

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (52,935) Adjustments for: Net realized gain (loss) on sale of investments 540 Change in unrealized appreciation (depreciation) in value of investments 143,087 Purchases of investments (2,120,503) Proceeds from sale of investments 24,007 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1,169 Net Cash provided by (used in) Operating Activities (2,004,635) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,091,036 Redemption of units (84,723) Net Cash provided by (used in) Financing Activities 2,006,313 Net increase (decrease) in cash 1,678 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 1,678 Distribution Income Received 107,110

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

116 Sun Fidelity True North

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fidelity True North Fund (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets Fidelity True North® fund aims to achieve long-term capital growth. It invests Fidelity True North Fund, Series O 45,268 2,097,629 1,954,542 primarily in equity securities in Canadian companies. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the Total Investments 2,097,629 1,954,542 100.06 various risks. Other Assets less Liabilities (1,114) (0.06) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 1,953,428 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Alimentation Couche-Tard Inc. 2,175,000 25,637,123 132,479,250 Canadian National Railway Co. 2,275,000 90,351,595 175,971,250 Canadian Natural Resources Ltd. 2,300,000 69,852,431 69,506,000 CGI Group Inc. 2,800,000 75,945,478 155,120,000 Inc. 130,000 40,611,467 74,994,400 Empire Co. Ltd. 2,375,000 57,366,080 61,132,500 Enbridge Inc. 1,900,000 62,997,088 87,400,000 Fairfax Financial Holdings Ltd. 147,000 61,429,773 96,565,770 Franco-Nevada Corp. 825,000 43,054,263 52,222,500 Activewear Inc. 3,300,000 51,764,506 129,822,000 Intact Financial Corp. 935,000 50,067,274 82,915,800 Johnson & Johnson 575,000 78,365,357 81,726,857 Loblaw Cos. Ltd. 3,350,000 112,694,345 218,889,000 Manulife Financial Corp. 7,500,000 109,714,913 155,550,000 Metro Inc. 3,252,500 40,147,614 126,001,850 Open Text Corporation 1,125,000 42,685,154 74,632,500 Peyto Exploration & Development Corp. 2,825,000 86,986,236 70,257,750 Power Corporation of Canada 3,975,000 98,066,351 115,036,500 Restaurant Brands International Inc. 1,750,000 77,075,791 90,562,500 Rogers Communication Inc. 3,575,000 134,389,938 170,599,000 Royal Bank of Canada 975,000 55,145,609 72,296,250 SNC-Lavalin Group Inc. 1,500,000 67,936,776 61,680,000 Suncor Energy Inc. 4,000,000 149,384,848 142,880,000 The Toronto-Dominion Bank 6,775,000 190,014,767 367,476,000 Thomson Reuters Corp. 1,150,000 43,353,947 60,271,500

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

117 Sun Fidelity True North

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fidelity True North - Estate Series A Sun Fidelity True North - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.30 Net asset value, end of period ($)(1) 9.38 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 684,166 Net assets(1) 587,540 Number of units outstanding(1) 73,580 Number of units outstanding(1) 62,628 Management expense ratio (%)(2) 3.54 Management expense ratio (%)(2) 2.47 Management expense ratio before waivers (%)(2) 3.54 Management expense ratio before waivers (%)(2) 2.47 Portfolio turnover rate (%)(3) 3.06 Portfolio turnover rate (%)(3) 3.06

Sun Fidelity True North - Investment Series A Sun Fidelity True North - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.33 Net asset value, end of period ($)(1) 9.40 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 681,252 Net assets(1) 470 Number of units outstanding(1) 73,045 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.15 Management expense ratio (%)(2) 2.02 Management expense ratio before waivers (%)(2) 3.15 Management expense ratio before waivers (%)(2) 2.02 Portfolio turnover rate (%)(3) 3.06 Portfolio turnover rate (%)(3) 3.06

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

118 Sun Fiera Global Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 429,122 Cash - Receivable for investment units sold 894 Subscriptions receivable 1,000 Distribution receivable from underlying fund - Other receivable - 431,016 Liabilities Current liabilities Bank indebtedness 876 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 290 1,166 Net Assets Attributable to Holders of Redeemable Units 429,850

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,479 Net realized gain (loss) on sale of investments 368 Change in unrealized appreciation (depreciation) in value of investments 15,954 17,801 Expenses (note 5) Management fees 2,613 Insurance fees 811 Administration fees 590 Total operating expenses 4,014 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,787

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

119 Sun Fiera Global Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,787 Holder of Redeemable Unit Transactions Proceeds from Units Issued 492,975 Redemption of Units (76,912) 416,063 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 429,850 Net Assets Attributable to Holders of Redeemable Units at end of period 429,850

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 13,787 Adjustments for: Net realized gain (loss) on sale of investments (368) Change in unrealized appreciation (depreciation) in value of investments (15,954) Purchases of investments (491,477) Proceeds from sale of investments 77,783 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 290 Net Cash provided by (used in) Operating Activities (415,939) Cash Flows from (used in) Financing Activities Proceeds from units issued 491,975 Redemption of units (76,912) Net Cash provided by (used in) Financing Activities 415,063 Net increase (decrease) in cash (876) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (876) Distribution Income Received 1,479

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

120 Sun Fiera Global Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fiera Global Equity Fund (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets objective of the underlying fund is to achieve over the longer term the highest Fiera Global Equity Fund, Series A 25,486 413,168 429,122 possible return that is consistent with a fundamental investment philosophy through investment primarily in foreign equity securities and to provide long- Total Investments 413,168 429,122 99.83 term capital appreciation through a portfolio of broadly diversified securities, Other Assets less Liabilities 728 0.17 by region and industry, invested primarily in the U.S. and International markets. Please refer to note 8 in the accompanying notes to the financial statements Total Net Assets 429,850 100.00 for an explanation of the various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). 3M Company 255,175 32,633,944 53,396,396 Australia & New Zealand Banking Group Ltd. 1,680,482 46,849,691 47,435,246 Autozone Inc. 42,766 37,776,139 44,074,091 Becton Dickinson 369,940 41,291,538 79,184,332 Diageo 1,306,841 38,131,069 49,672,868 Housing Development Finance Corp. 1,562,613 25,951,815 41,464,385 Intercontinental Hotels 1,096,592 46,143,177 59,676,258 Intertek Group 716,201 32,037,898 40,720,428 Johnson & Johnson 489,143 45,129,295 69,795,009 Keyence Corp. 79,675 28,726,061 61,716,468 Mastercard Inc. 398,634 21,849,280 53,912,369 Moody's Corp. 634,709 44,789,613 88,467,196 MSCI Inc. 448,171 18,632,539 44,904,844 Nestle SA 554,298 40,887,548 57,344,318 Nike Inc. 592,260 20,127,220 51,550,906 Novartis AG 400,422 32,175,434 48,232,202 Oracle Corp. 867,520 36,011,231 44,021,281 Richemont 418,695 36,100,023 41,892,133 Roche Holding AG 123,534 29,320,169 47,383,155 Schindler Holding AG 224,188 31,666,930 52,266,218 Svenska Handelsbanken 2,744,998 42,334,182 51,063,550 TJX Companies Inc. 606,183 31,146,874 59,709,681 Unilever NV CVA 804,519 35,678,136 48,687,572 US Bancorp 1,045,599 41,164,329 62,346,054 Wells Fargo & Co. 790,095 45,643,121 59,661,240

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

121 Sun Fiera Global Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fiera Global Equity - Estate Series A Sun Fiera Global Equity - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.81 Net asset value, end of period ($)(1) 10.89 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 329,674 Net assets(1) 545 Number of units outstanding(1) 30,499 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.68 Management expense ratio (%)(2) 2.55 Management expense ratio before waivers (%)(2) 3.68 Management expense ratio before waivers (%)(2) 2.55 Portfolio turnover rate (%)(3) 43.77 Portfolio turnover rate (%)(3) 43.77

Sun Fiera Global Equity - Investment Series A Sun Fiera Global Equity - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.85 Net asset value, end of period ($)(1) 10.93 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 99,084 Net assets(1) 547 Number of units outstanding(1) 9,131 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.17 Management expense ratio (%)(2) 2.04 Management expense ratio before waivers (%)(2) 3.17 Management expense ratio before waivers (%)(2) 2.04 Portfolio turnover rate (%)(3) 43.77 Portfolio turnover rate (%)(3) 43.77

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

122 Sun Fiera US Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 39,404 Cash - Receivable for investment units sold 75 Subscriptions receivable 1,500 Distribution receivable from underlying fund - Other receivable - 40,979 Liabilities Current liabilities Bank indebtedness 75 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 23 98 Net Assets Attributable to Holders of Redeemable Units 40,881

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 430 Net realized gain (loss) on sale of investments 15 Change in unrealized appreciation (depreciation) in value of investments 2,206 2,651 Expenses (note 5) Management fees 203 Insurance fees 31 Administration fees 47 Total operating expenses 281 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,370

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

123 Sun Fiera US Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,370 Holder of Redeemable Unit Transactions Proceeds from Units Issued 38,511 Redemption of Units - 38,511 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 40,881 Net Assets Attributable to Holders of Redeemable Units at end of period 40,881

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 2,370 Adjustments for: Net realized gain (loss) on sale of investments (15) Change in unrealized appreciation (depreciation) in value of investments (2,206) Purchases of investments (37,440) Proceeds from sale of investments 182 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 23 Net Cash provided by (used in) Operating Activities (37,086) Cash Flows from (used in) Financing Activities Proceeds from units issued 37,011 Redemption of units - Net Cash provided by (used in) Financing Activities 37,011 Net increase (decrease) in cash (75) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (75) Distribution Income Received 430

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

124 Sun Fiera US Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Fiera US Equity Fund (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets objectives of the underlying fund are to achieve over the longer term the Fiera US Equity Fund, Series A 4,212 37,198 39,404 highest possible return that is consistent with a fundamental investment philosophy through investment primarily in U.S. equity securities, and to Total Investments 37,198 39,404 96.39 provide long-term capital appreciation through a portfolio of broadly Other Assets less Liabilities 1,477 3.61 diversified securities, by industry, invested primarily in the U.S. market. Please refer to note 8 in the accompanying notes to the financial statements for an Total Net Assets 40,881 100.00 explanation of the various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). 3M Company 37,107 5,035,447 7,764,789 Autozone Inc. 7,580 4,042,152 7,811,851 Becton Dickinson 48,986 5,934,740 10,485,278 Colgate Palmolive Co. 81,994 5,725,625 7,587,876 Graco Inc. 60,025 4,279,802 6,009,249 IHS Inc. 32,478 4,259,153 5,342,992 Johnson & Johnson 90,279 9,036,148 12,881,762 Linear Technology 84,280 3,811,752 4,972,105 Lowes Co. 55,833 2,913,635 5,897,481 Mastercard Inc. 58,319 4,120,457 7,887,223 Mettler-Toledo International Inc. 15,410 4,405,376 7,259,427 Middleby Corp. 31,685 2,378,810 4,747,751 Moody's Corp. 101,385 8,411,174 14,131,274 MSCI Inc. 70,754 3,063,247 7,089,252 Nike Inc. 77,142 2,782,762 6,714,517 Oracle Corp. 127,564 5,088,960 6,473,085 Pepsico Inc. 53,741 5,181,428 7,509,783 Praxair Inc. 33,987 4,567,038 4,834,441 Sherwin Williams Co. 18,639 4,317,407 6,721,417 TJX Companies Inc. 87,641 4,906,446 8,632,733 Tractor Supply Co. 52,842 3,501,499 6,275,941 United Technologies 58,759 6,404,456 7,841,438 Unitedhealth Group Inc. 43,800 3,330,122 7,157,521 US Bancorp 158,844 6,407,884 9,471,410 Wells Fargo & Co. 141,097 6,908,450 10,654,443

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

125 Sun Fiera US Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Fiera US Equity - Investment Series A Sun Fiera US Equity - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.11 Net asset value, end of period ($)(1) 11.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 40,321 Net assets(1) 560 Number of units outstanding(1) 3,628 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.21 Management expense ratio (%)(2) 2.08 Management expense ratio before waivers (%)(2) 3.21 Management expense ratio before waivers (%)(2) 2.08 Portfolio turnover rate (%)(3) 1.22 Portfolio turnover rate (%)(3) 1.22

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

126 Sun Franklin Bissett Canadian Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 327,747 Cash - Receivable for investment units sold 715 Subscriptions receivable 1,000 Distribution receivable from underlying fund - Other receivable - 329,462 Liabilities Current liabilities Bank indebtedness 715 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 178 894 Net Assets Attributable to Holders of Redeemable Units 328,568

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,393 Net realized gain (loss) on sale of investments (25) Change in unrealized appreciation (depreciation) in value of investments (12,072) (6,704) Expenses (note 5) Management fees 1,014 Insurance fees 157 Administration fees 87 Total operating expenses 1,258 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,962)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

127 Sun Franklin Bissett Canadian Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,962) Holder of Redeemable Unit Transactions Proceeds from Units Issued 336,531 Redemption of Units (1) 336,530 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 328,568 Net Assets Attributable to Holders of Redeemable Units at end of period 328,568

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (7,962) Adjustments for: Net realized gain (loss) on sale of investments 25 Change in unrealized appreciation (depreciation) in value of investments 12,072 Purchases of investments (340,697) Proceeds from sale of investments 138 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 178 Net Cash provided by (used in) Operating Activities (336,246) Cash Flows from (used in) Financing Activities Proceeds from units issued 335,531 Redemption of units - Net Cash provided by (used in) Financing Activities 335,531 Net increase (decrease) in cash (715) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (715) Distribution Income Received 5,393

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

128 Sun Franklin Bissett Canadian Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Franklin Bissett Canadian Equity Class (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund seeks to achieve long-term capital Sun Life Franklin Bissett Canadian Equity appreciation primarily by investing directly in a diversified portfolio of mid to Class, Series I 36,262 339,819 327,747 large capitalization Canadian equities or indirectly by investing in the Bissett Canadian Equity Fund that invest in such securities. Please refer to note 8 in Total Investments 339,819 327,747 99.75 the accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities 821 0.25 various risks. Total Net Assets 328,568 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Bissett Canadian Equity Fund, Class O 6,685 882,056 815,903

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

129 Sun Franklin Bissett Canadian Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Franklin Bissett Canadian Equity - Estate Series A Sun Franklin Bissett Canadian Equity - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.88 Net asset value, end of period ($)(1) 9.69 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 444 Net assets(1) 484 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.31 Management expense ratio (%)(2) 3.31 Management expense ratio before waivers (%)(2) 3.31 Management expense ratio before waivers (%)(2) 3.31 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Franklin Bissett Canadian Equity - Estate Series F Sun Franklin Bissett Canadian Equity - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.94 Net asset value, end of period ($)(1) 9.72 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 447 Net assets(1) 485 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.18 Management expense ratio (%)(2) 1.05 Management expense ratio before waivers (%)(2) 2.18 Management expense ratio before waivers (%)(2) 1.05 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Franklin Bissett Canadian Equity - Investment Series A Sun Franklin Bissett Canadian Equity - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.89 Net asset value, end of period ($)(1) 9.69 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 325,289 Net assets(1) 485 Number of units outstanding(1) 36,581 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.85 Management expense ratio (%)(2) 2.85 Management expense ratio before waivers (%)(2) 2.85 Management expense ratio before waivers (%)(2) 2.85 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Franklin Bissett Canadian Equity - Investment Series F Sun Franklin Bissett Canadian Equity - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.97 Net asset value, end of period ($)(1) 9.72 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 448 Net assets(1) 486 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.72 Management expense ratio (%)(2) 0.61 Management expense ratio before waivers (%)(2) 1.72 Management expense ratio before waivers (%)(2) 0.61 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

130 Sun Franklin Bissett Cdn Equity Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 20,675 Cash 6 Receivable for investment units sold - Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 20,681 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 6 Payable for fees & expenses 15 22 Net Assets Attributable to Holders of Redeemable Units 20,659

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 458 Net realized gain (loss) on sale of investments (13) Change in unrealized appreciation (depreciation) in value of investments (1,393) (948) Expenses (note 5) Management fees 220 Insurance fees 169 Administration fees 11 Total operating expenses 400 Management fees waived/absorbed by the Manager (10) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,338)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

131 Sun Franklin Bissett Cdn Equity Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,338) Holder of Redeemable Unit Transactions Proceeds from Units Issued 21,998 Redemption of Units (1) 21,997 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 20,659 Net Assets Attributable to Holders of Redeemable Units at end of period 20,659

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (1,338) Adjustments for: Net realized gain (loss) on sale of investments 13 Change in unrealized appreciation (depreciation) in value of investments 1,393 Purchases of investments (22,457) Proceeds from sale of investments 382 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 15 Net Cash provided by (used in) Operating Activities (21,992) Cash Flows from (used in) Financing Activities Proceeds from units issued 21,998 Redemption of units - Net Cash provided by (used in) Financing Activities 21,998 Net increase (decrease) in cash 6 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 6 Distribution Income Received 458

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

132 Sun Franklin Bissett Cdn Equity Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life Franklin Sun Life Franklin Bissett Canadian Equity Bissett Canadian Equity Class as its main investment. Please refer to note 8 in Class, Series I 1,563 15,355 14,131 the accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 482 6,713 6,544

Total Investments 22,068 20,675 100.08 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities (16) (0.08) The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 20,659 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life Franklin Bissett Canadian Equity Class, Series I Bissett Canadian Equity Fund, Class O 6,685 882,056 815,903 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

133 Sun Franklin Bissett Cdn Equity Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser A Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.94 Net asset value, end of period ($)(1) 9.80 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 19,229 Net assets(1) 490 Number of units outstanding(1) 2,150 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.75 Management expense ratio (%)(2) 3.75 Management expense ratio before waivers (%)(2) 3.85 Management expense ratio before waivers (%)(2) 3.85 Portfolio turnover rate (%)(3) 2.56 Portfolio turnover rate (%)(3) 2.56

Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser F Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.00 Net asset value, end of period ($)(1) 9.82 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 450 Net assets(1) 490 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.89 Management expense ratio (%)(2) 1.87 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 1.87 Portfolio turnover rate (%)(3) 2.56 Portfolio turnover rate (%)(3) 2.56

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

134 Sun Franklin World Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 40,802 Cash - Receivable for investment units sold 51 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 40,853 Liabilities Current liabilities Bank indebtedness 46 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 26 72 Net Assets Attributable to Holders of Redeemable Units 40,781

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,544 Net realized gain (loss) on sale of investments (141) Change in unrealized appreciation (depreciation) in value of investments 64 1,467 Expenses (note 5) Management fees 390 Insurance fees 59 Administration fees 124 Total operating expenses 573 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 894

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

135 Sun Franklin World Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 894 Holder of Redeemable Unit Transactions Proceeds from Units Issued 63,166 Redemption of Units (23,279) 39,887 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 40,781 Net Assets Attributable to Holders of Redeemable Units at end of period 40,781

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 894 Adjustments for: Net realized gain (loss) on sale of investments 141 Change in unrealized appreciation (depreciation) in value of investments (64) Purchases of investments (64,711) Proceeds from sale of investments 23,781 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 26 Net Cash provided by (used in) Operating Activities (39,933) Cash Flows from (used in) Financing Activities Proceeds from units issued 63,166 Redemption of units (23,279) Net Cash provided by (used in) Financing Activities 39,887 Net increase (decrease) in cash (46) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (46) Distribution Income Received 1,544

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

136 Sun Franklin World Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Franklin World Growth Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund seeks long-term capital appreciation by investing primarily Franklin World Growth Fund, Series O 2,369 40,738 40,802 in equity securities of growth companies, with any size market capitalization, that are located throughout the world. The underlying fund may invest up to Total Investments 40,738 40,802 100.05 20% of its total assets in common stocks of issuers located in emerging market Other Assets less Liabilities (21) (0.05) nations and up to 35% of its total assets in debt securities. Please refer to note 8 in the accompanying notes to the financial statements for an Total Net Assets 40,781 100.00 explanation of the various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). Adobe Systems Inc. 27,000 1,914,479 3,508,574 athenahealth Inc. 16,000 2,156,527 3,562,717 Burberry Group PLC 140,000 3,732,067 3,411,105 Check Point Software Technologies Ltd. 31,000 3,187,632 3,489,762 Cochlear Ltd. 38,000 2,501,574 3,660,130 Core Laboratories NV 22,000 3,259,746 3,309,241 CSL Ltd. 30,000 1,533,680 3,183,734 Delphi Automotive PLC 26,000 2,899,622 3,083,348 Infineon Technologies AG 215,000 3,447,512 4,362,940 Intercontinental Exchange Inc. 8,800 1,534,049 3,119,463 KBC Groep NV 46,000 4,205,934 3,986,153 Ltd., A 64,500 4,192,342 4,015,920 Level 3 Communications Inc. 62,000 3,072,091 4,662,162 Merlin Entertainment PLC 375,000 3,195,067 3,482,722 MTU Aero Engines AG 24,000 1,914,383 3,249,243 Partners Group Holding AG 7,000 1,989,400 3,491,038 Polaris Industries Inc. 26,000 3,759,738 3,091,261 Reckitt Benckiser Group PLC 15,000 1,641,706 2,124,749 Roche Holding AG 10,300 2,827,520 3,930,284 Rockwell Automation Inc. 24,000 2,644,200 3,406,570 SGS SA 1,600 3,827,489 4,221,136 Signature Bank 18,500 2,576,937 3,924,899 Verisk Analytics Inc. 35,000 2,449,129 3,722,184 Visa Inc., A 30,000 1,144,916 3,218,247 W.R. Grace & Co. 24,000 2,603,156 3,306,308

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

137 Sun Franklin World Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Franklin World Growth - Investment Series A Sun Franklin World Growth - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.87 Net asset value, end of period ($)(1) 10.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 40,234 Net assets(1) 547 Number of units outstanding(1) 3,702 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.31 Management expense ratio (%)(2) 2.18 Management expense ratio before waivers (%)(2) 3.31 Management expense ratio before waivers (%)(2) 2.18 Portfolio turnover rate (%)(3) 95.38 Portfolio turnover rate (%)(3) 95.38

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

138 Sun Life Granite Balanced

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 29,556,576 Cash 505,942 Receivable for investment units sold - Subscriptions receivable 290,219 Distribution receivable from underlying fund - Other receivable 1,543 30,354,280 Liabilities Current liabilities Bank indebtedness - Redemptions payable 3,716 Payable for investment units purchased 561,098 Payable for fees & expenses 16,461 581,275 Net Assets Attributable to Holders of Redeemable Units 29,773,005

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,551,563 Net realized gain (loss) on sale of investments (2,171) Change in unrealized appreciation (depreciation) in value of investments (1,055,659) 493,733 Expenses (note 5) Management fees 162,924 Insurance fees 52,867 Administration fees 8,178 Total operating expenses 223,969 Management fees waived/absorbed by the Manager (10,642) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 280,406

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

139 Sun Life Granite Balanced

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 280,406 Holder of Redeemable Unit Transactions Proceeds from Units Issued 32,042,074 Redemption of Units (2,549,475) 29,492,599 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 29,773,005 Net Assets Attributable to Holders of Redeemable Units at end of period 29,773,005

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 280,406 Adjustments for: Net realized gain (loss) on sale of investments 2,171 Change in unrealized appreciation (depreciation) in value of investments 1,055,659 Purchases of investments (30,268,844) Proceeds from sale of investments 215,536 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (1,543) Increase (decrease) in fees & expenses payable 16,461 Net Cash provided by (used in) Operating Activities (28,700,154) Cash Flows from (used in) Financing Activities Proceeds from units issued 31,751,855 Redemption of units (2,545,759) Net Cash provided by (used in) Financing Activities 29,206,096 Net increase (decrease) in cash 505,942 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 505,942 Distribution Income Received 1,551,563

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

140 Sun Life Granite Balanced

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Balanced Portfolio (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund’s investment objective is to seek capital Sun Life Granite Balanced appreciation and income, with a small bias towards capital appreciation, by Portfolio, Series I 2,313,011 30,612,235 29,556,576 investing primarily in a mix of equity and fixed income mutual funds. Please refer to note 8 in the accompanying notes to the financial statements for an Total Investments 30,612,235 29,556,576 99.27 explanation of the various risks. Other Assets less Liabilities 216,429 0.73 Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 29,773,005 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) ABSL Umbrella UCITS Fund 34,082 4,454,924 4,640,649 Beutel Goodman Canadian Equity Fund, Class I 1,185,561 40,206,294 39,029,983 Brandes U.S. Small Cap Equity Fund, Class I 554,092 10,551,277 10,958,273 Global Real Estate Fund, Series I 1,785,375 21,084,107 24,007,932 iShares Core S&P 500 ETF 336,282 76,768,500 95,700,862 RBC Global High Yield Bond Fund, Series O 4,322,854 45,974,261 43,458,085 Sun Life Beutel Goodman Canadian Bond Fund, Series I 5,337,261 53,143,229 52,833,548 Sun Life BlackRock Canadian Composite Equity Fund, Series I 5,349,968 54,075,022 50,005,619 Sun Life BlackRock Canadian Universe Bond Fund, Series I 14,673,238 157,995,441 157,771,060 Sun Life Dynamic Energy Income Fund, Series I 1,623,941 15,855,092 14,194,865 Sun Life MFS Canadian Equity Growth Fund, Series I 595,390 26,634,348 25,964,293 Sun Life MFS International Growth Fund, Series I 2,219,794 30,272,605 34,434,772 Sun Life MFS International Value Fund, Series I 6,032,461 99,432,090 122,704,486 Sun Life MFS U.S. Growth Fund, Series I 2,261,265 52,333,742 61,266,028 Sun Life Money Market Fund, Series I 6,103,649 61,036,488 61,036,488 Sun Life NWQ Flexible Income Fund, Series I 2,009,348 20,191,224 19,389,809 Sun Life Schroder Emerging Markets Fund, Series I 2,132,347 18,336,109 18,567,626 Sun Life Sentry Global Mid Cap Fund, Series I 729,440 7,325,680 7,039,094 Sun Life Sentry Infrastructure Fund, Series I 5,607,671 55,197,781 51,046,066 Sun Life Sionna Canadian Small Cap Equity Class, Series I 541,913 5,240,413 4,589,302 Templeton Global Bond Fund, Series O 2,261,634 29,104,631 29,129,852

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

141 Sun Life Granite Balanced

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Balanced - Estate Series A Sun Life Granite Balanced - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.93 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 13,060,766 Net assets(1) 952,799 Number of units outstanding(1) 1,315,578 Number of units outstanding(1) 94,272 Management expense ratio (%)(2) 2.92 Management expense ratio (%)(2) 2.92 Management expense ratio before waivers (%)(2) 3.07 Management expense ratio before waivers (%)(2) 3.07 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

Sun Life Granite Balanced - Estate Series F Sun Life Granite Balanced - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.78 Management expense ratio (%)(2) 0.81 Management expense ratio before waivers (%)(2) 1.93 Management expense ratio before waivers (%)(2) 0.81 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

Sun Life Granite Balanced - Investment Series A Sun Life Granite Balanced - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.97 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 7,670,717 Net assets(1) 82,494 Number of units outstanding(1) 769,757 Number of units outstanding(1) 8,158 Management expense ratio (%)(2) 2.55 Management expense ratio (%)(2) 2.55 Management expense ratio before waivers (%)(2) 2.69 Management expense ratio before waivers (%)(2) 2.69 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

Sun Life Granite Balanced - Investment Series F Sun Life Granite Balanced - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.03 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 501 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.45 Management expense ratio (%)(2) 0.47 Management expense ratio before waivers (%)(2) 1.60 Management expense ratio before waivers (%)(2) 0.47 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

Sun Life Granite Balanced - Lifetime Advantage Series A Sun Life Granite Balanced - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.87 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 4,950,667 Net assets(1) 405,177 Number of units outstanding(1) 501,403 Number of units outstanding(1) 40,133 Management expense ratio (%)(2) 3.94 Management expense ratio (%)(2) 3.94 Management expense ratio before waivers (%)(2) 4.11 Management expense ratio before waivers (%)(2) 4.11 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

142 Sun Life Granite Balanced

Financial Highlights (Continued)

Sun Life Granite Balanced - Lifetime Advantage Series F Sun Life Granite Balanced - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.94 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 497 Net assets(1) 373,083 Number of units outstanding(1) 50 Number of units outstanding(1) 36,861 Management expense ratio (%)(2) 2.84 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 3.01 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

Sun Life Granite Balanced - Protect Series A Sun Life Granite Balanced - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.88 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,906,859 Net assets(1) 505 Number of units outstanding(1) 193,008 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.65 Management expense ratio (%)(2) 3.58 Management expense ratio before waivers (%)(2) 3.74 Management expense ratio before waivers (%)(2) 3.68 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

Sun Life Granite Balanced - Protect Series F Sun Life Granite Balanced - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 498 Net assets(1) 366,930 Number of units outstanding(1) 50 Number of units outstanding(1) 36,236 Management expense ratio (%)(2) 2.47 Management expense ratio (%)(2) 1.43 Management expense ratio before waivers (%)(2) 2.56 Management expense ratio before waivers (%)(2) 1.43 Portfolio turnover rate (%)(3) 1.91 Portfolio turnover rate (%)(3) 1.91

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

143 Sun Life Granite Balanced Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 18,675,180 Cash 85,828 Receivable for investment units sold 46,180 Subscriptions receivable 238,779 Distribution receivable from underlying fund - Other receivable 7,603 19,053,570 Liabilities Current liabilities Bank indebtedness - Redemptions payable 598 Payable for investment units purchased 359,428 Payable for fees & expenses 11,028 371,054 Net Assets Attributable to Holders of Redeemable Units 18,682,516

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,072,637 Net realized gain (loss) on sale of investments (1,715) Change in unrealized appreciation (depreciation) in value of investments (727,929) 342,993 Expenses (note 5) Management fees 103,157 Insurance fees 43,972 Administration fees 5,317 Total operating expenses 152,446 Management fees waived/absorbed by the Manager (3,974) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 194,521

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

144 Sun Life Granite Balanced Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 194,521 Holder of Redeemable Unit Transactions Proceeds from Units Issued 18,793,857 Redemption of Units (305,862) 18,487,995 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 18,682,516 Net Assets Attributable to Holders of Redeemable Units at end of period 18,682,516

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 194,521 Adjustments for: Net realized gain (loss) on sale of investments 1,715 Change in unrealized appreciation (depreciation) in value of investments 727,929 Purchases of investments (19,103,717) Proceeds from sale of investments 12,141 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (7,603) Increase (decrease) in fees & expenses payable 11,028 Net Cash provided by (used in) Operating Activities (18,163,986) Cash Flows from (used in) Financing Activities Proceeds from units issued 18,555,078 Redemption of units (305,264) Net Cash provided by (used in) Financing Activities 18,249,814 Net increase (decrease) in cash 85,828 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 85,828 Distribution Income Received 1,072,637

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

145 Sun Life Granite Balanced Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Balanced Growth Portfolio (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund's investment objective is to seek Sun Life Granite Balanced Growth capital appreciation and income, with a bias towards capital appreciation, by Portfolio, Series I 1,392,901 19,403,109 18,675,180 investing primarily in equity mutual funds and, to a lesser extent, fixed income mutual funds. Please refer to note 8 in the accompanying notes to the Total Investments 19,403,109 18,675,180 99.96 financial statements for an explanation of the various risks. Other Assets less Liabilities 7,336 0.04 Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 18,682,516 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) ABSL Umbrella UCITS Fund 20,599 2,692,537 2,804,788 Beutel Goodman Canadian Equity Fund, Class I 579,390 19,804,835 19,074,147 Brandes U.S. Small Cap Equity Fund, Class I 308,828 5,840,664 6,107,688 Invesco Global Real Estate Fund, Series I 1,098,529 12,973,714 14,771,923 iShares Core S&P 500 ETF 175,927 40,390,715 50,066,211 RBC Global High Yield Bond Fund, Series O 1,481,170 15,777,309 14,890,351 Sun Life Beutel Goodman Canadian Bond Fund, Series I 1,906,438 19,004,906 18,871,826 Sun Life BlackRock Canadian Composite Equity Fund, Series I 2,629,622 26,765,628 24,578,817 Sun Life BlackRock Canadian Universe Bond Fund, Series I 5,256,978 56,675,083 56,524,600 Sun Life Dynamic Energy Income Fund, Series I 698,551 6,839,220 6,106,033 Sun Life MFS Canadian Equity Growth Fund, Series I 295,151 13,343,835 12,871,200 Sun Life MFS International Growth Fund, Series I 1,149,343 15,845,506 17,829,294 Sun Life MFS International Value Fund, Series I 3,047,761 50,919,747 61,993,589 Sun Life MFS U.S. Growth Fund, Series I 1,151,000 26,683,249 31,184,837 Sun Life Money Market Fund, Series I 2,013,234 20,132,343 20,132,342 Sun Life NWQ Flexible Income Fund, Series I 664,146 6,662,401 6,408,875 Sun Life Schroder Emerging Markets Fund, Series I 1,105,347 9,565,633 9,624,918 Sun Life Sentry Global Mid Cap Fund, Series I 443,250 4,451,794 4,277,362 Sun Life Sentry Infrastructure Fund, Series I 2,959,351 29,193,513 26,938,674 Sun Life Sionna Canadian Small Cap Equity Class, Series I 363,821 3,529,919 3,081,091 Templeton Global Bond Fund, Series O 500,681 6,490,222 6,448,775

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

146 Sun Life Granite Balanced Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Balanced Growth - Estate Series A Sun Life Granite Balanced Growth - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.11 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 4,857,411 Net assets(1) 84,262 Number of units outstanding(1) 480,601 Number of units outstanding(1) 8,332 Management expense ratio (%)(2) 2.94 Management expense ratio (%)(2) 2.94 Management expense ratio before waivers (%)(2) 3.04 Management expense ratio before waivers (%)(2) 3.04 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Life Granite Balanced Growth - Estate Series F Sun Life Granite Balanced Growth - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.18 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 509 Net assets(1) 218,892 Number of units outstanding(1) 50 Number of units outstanding(1) 21,582 Management expense ratio (%)(2) 1.83 Management expense ratio (%)(2) 0.80 Management expense ratio before waivers (%)(2) 1.93 Management expense ratio before waivers (%)(2) 0.80 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Life Granite Balanced Growth - Investment Series A Sun Life Granite Balanced Growth - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.12 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 4,618,089 Net assets(1) 51,077 Number of units outstanding(1) 456,140 Number of units outstanding(1) 5,048 Management expense ratio (%)(2) 2.61 Management expense ratio (%)(2) 2.61 Management expense ratio before waivers (%)(2) 2.70 Management expense ratio before waivers (%)(2) 2.70 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Life Granite Balanced Growth - Investment Series F Sun Life Granite Balanced Growth - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.20 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 751,896 Net assets(1) 506 Number of units outstanding(1) 73,685 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.51 Management expense ratio (%)(2) 0.47 Management expense ratio before waivers (%)(2) 1.60 Management expense ratio before waivers (%)(2) 0.47 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Life Granite Balanced Growth - Lifetime Advantage Series A Sun Life Granite Balanced Growth - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.02 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 4,474,262 Net assets(1) 505 Number of units outstanding(1) 446,475 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.02 Management expense ratio (%)(2) 4.01 Management expense ratio before waivers (%)(2) 4.16 Management expense ratio before waivers (%)(2) 4.14 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

147 Sun Life Granite Balanced Growth

Financial Highlights (Continued)

Sun Life Granite Balanced Growth - Lifetime Advantage Series F Sun Life Granite Balanced Growth - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.11 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 505 Net assets(1) 204,093 Number of units outstanding(1) 50 Number of units outstanding(1) 20,151 Management expense ratio (%)(2) 2.87 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 3.01 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Life Granite Balanced Growth - Protect Series A Sun Life Granite Balanced Growth - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.03 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 3,418,992 Net assets(1) 505 Number of units outstanding(1) 340,765 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.79 Management expense ratio (%)(2) 3.75 Management expense ratio before waivers (%)(2) 3.79 Management expense ratio before waivers (%)(2) 3.75 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

Sun Life Granite Balanced Growth - Protect Series F Sun Life Granite Balanced Growth - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.12 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 506 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.62 Management expense ratio (%)(2) 1.49 Management expense ratio before waivers (%)(2) 2.62 Management expense ratio before waivers (%)(2) 1.49 Portfolio turnover rate (%)(3) 0.17 Portfolio turnover rate (%)(3) 0.17

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

148 Sun Life Granite Conservative

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 27,994,288 Cash 686,493 Receivable for investment units sold - Subscriptions receivable 147,064 Distribution receivable from underlying fund - Other receivable 805 28,828,650 Liabilities Current liabilities Bank indebtedness - Redemptions payable 3,182 Payable for investment units purchased 799,099 Payable for fees & expenses 13,489 815,770 Net Assets Attributable to Holders of Redeemable Units 28,012,880

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,272,758 Net realized gain (loss) on sale of investments 3,586 Change in unrealized appreciation (depreciation) in value of investments (959,736) 316,608 Expenses (note 5) Management fees 164,889 Insurance fees 36,615 Administration fees 8,346 Total operating expenses 209,850 Management fees waived/absorbed by the Manager (14,403) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 121,161

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

149 Sun Life Granite Conservative

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 121,161 Holder of Redeemable Unit Transactions Proceeds from Units Issued 29,583,701 Redemption of Units (1,691,982) 27,891,719 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 28,012,880 Net Assets Attributable to Holders of Redeemable Units at end of period 28,012,880

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 121,161 Adjustments for: Net realized gain (loss) on sale of investments (3,586) Change in unrealized appreciation (depreciation) in value of investments 959,736 Purchases of investments (28,745,910) Proceeds from sale of investments 594,571 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (805) Increase (decrease) in fees & expenses payable 13,489 Net Cash provided by (used in) Operating Activities (27,061,344) Cash Flows from (used in) Financing Activities Proceeds from units issued 29,436,637 Redemption of units (1,688,800) Net Cash provided by (used in) Financing Activities 27,747,837 Net increase (decrease) in cash 686,493 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 686,493 Distribution Income Received 1,272,758

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

150 Sun Life Granite Conservative

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Conservative Portfolio (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund's investment objective is to seek Sun Life Granite Conservative income and capital appreciation, with a bias towards income, by investing Portfolio, Series I 2,415,529 28,954,024 27,994,288 primarily in fixed income mutual funds and, to a lesser extent, equity mutual funds. Please refer to note 8 in the accompanying notes to the financial Total Investments 28,954,024 27,994,288 99.93 statements for an explanation of the various risks. Other Assets less Liabilities 18,592 0.07 Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 28,012,880 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Beutel Goodman Canadian Equity Fund, Class I 274,116 9,380,222 9,024,211 Brandes U.S. Small Cap Equity Fund, Class I 173,838 3,321,510 3,437,997 Invesco Global Real Estate Fund, Series I 183,309 2,192,567 2,464,958 iShares Core S&P 500 ETF 97,890 24,860,578 27,858,040 RBC Global High Yield Bond Fund, Series O 3,725,157 39,732,222 37,449,373 Sun Life Beutel Goodman Canadian Bond Fund, Series I 4,818,285 48,102,881 47,696,204 Sun Life BlackRock Canadian Composite Equity Fund, Series I 1,240,213 12,566,027 11,592,145 Sun Life BlackRock Canadian Universe Bond Fund, Series I 14,304,988 154,062,709 153,811,523 Sun Life Dynamic Energy Income Fund, Series I 428,606 4,188,268 3,746,442 Sun Life MFS Canadian Equity Growth Fund, Series I 140,984 6,350,623 6,148,138 Sun Life MFS International Growth Fund, Series I 651,046 8,915,637 10,099,414 Sun Life MFS International Value Fund, Series I 1,681,535 27,650,676 34,203,609 Sun Life MFS U.S. Growth Fund, Series I 555,453 13,045,768 15,049,282 Sun Life Money Market Fund, Series I 6,302,882 63,028,819 63,028,819 Sun Life NWQ Flexible Income Fund, Series I 1,300,504 13,075,247 12,549,599 Sun Life Sentry Global Mid Cap Fund, Series I 264,810 2,661,531 2,555,420 Sun Life Sentry Infrastructure Fund, Series I 1,347,876 13,300,608 12,269,576 Sun Life Sionna Canadian Small Cap Equity Class, Series I 143,321 1,391,557 1,213,741 Templeton Global Bond Fund, Series O 2,774,780 35,945,141 35,739,165

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

151 Sun Life Granite Conservative

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Conservative - Estate Series A Sun Life Granite Conservative - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 8,311,116 Net assets(1) 851,493 Number of units outstanding(1) 832,943 Number of units outstanding(1) 84,284 Management expense ratio (%)(2) 2.78 Management expense ratio (%)(2) 2.78 Management expense ratio before waivers (%)(2) 2.97 Management expense ratio before waivers (%)(2) 2.97 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

Sun Life Granite Conservative - Estate Series F Sun Life Granite Conservative - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.03 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 289,797 Net assets(1) 307,475 Number of units outstanding(1) 28,898 Number of units outstanding(1) 30,343 Management expense ratio (%)(2) 1.68 Management expense ratio (%)(2) 0.74 Management expense ratio before waivers (%)(2) 1.87 Management expense ratio before waivers (%)(2) 0.74 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

Sun Life Granite Conservative - Investment Series A Sun Life Granite Conservative - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.97 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 12,912,785 Net assets(1) 19,870 Number of units outstanding(1) 1,294,850 Number of units outstanding(1) 1,965 Management expense ratio (%)(2) 2.40 Management expense ratio (%)(2) 2.40 Management expense ratio before waivers (%)(2) 2.59 Management expense ratio before waivers (%)(2) 2.59 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

Sun Life Granite Conservative - Investment Series F Sun Life Granite Conservative - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.04 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 502 Net assets(1) 511,535 Number of units outstanding(1) 50 Number of units outstanding(1) 50,464 Management expense ratio (%)(2) 1.34 Management expense ratio (%)(2) 0.40 Management expense ratio before waivers (%)(2) 1.53 Management expense ratio before waivers (%)(2) 0.40 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

Sun Life Granite Conservative - Lifetime Advantage Series A Sun Life Granite Conservative - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.87 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,936,824 Net assets(1) 504 Number of units outstanding(1) 196,256 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.81 Management expense ratio (%)(2) 3.78 Management expense ratio before waivers (%)(2) 3.92 Management expense ratio before waivers (%)(2) 3.89 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

152 Sun Life Granite Conservative

Financial Highlights (Continued)

Sun Life Granite Conservative - Lifetime Advantage Series F Sun Life Granite Conservative - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.95 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 498 Net assets(1) 220,280 Number of units outstanding(1) 50 Number of units outstanding(1) 21,762 Management expense ratio (%)(2) 2.66 Management expense ratio (%)(2) 1.64 Management expense ratio before waivers (%)(2) 2.77 Management expense ratio before waivers (%)(2) 1.64 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

Sun Life Granite Conservative - Protect Series A Sun Life Granite Conservative - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.92 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,598,791 Net assets(1) 505 Number of units outstanding(1) 262,080 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.19 Management expense ratio (%)(2) 3.18 Management expense ratio before waivers (%)(2) 3.52 Management expense ratio before waivers (%)(2) 3.51 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

Sun Life Granite Conservative - Protect Series F Sun Life Granite Conservative - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 50,405 Number of units outstanding(1) 50 Number of units outstanding(1) 4,978 Management expense ratio (%)(2) 2.05 Management expense ratio (%)(2) 1.25 Management expense ratio before waivers (%)(2) 2.38 Management expense ratio before waivers (%)(2) 1.25 Portfolio turnover rate (%)(3) 5.14 Portfolio turnover rate (%)(3) 5.14

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

153 Sun Life Granite Enhanced Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 6,397,373 Cash 374,471 Receivable for investment units sold - Subscriptions receivable 113,051 Distribution receivable from underlying fund - Other receivable 441 6,885,336 Liabilities Current liabilities Bank indebtedness - Redemptions payable 25,807 Payable for investment units purchased 404,469 Payable for fees & expenses 3,500 433,776 Net Assets Attributable to Holders of Redeemable Units 6,451,560

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 112,732 Net realized gain (loss) on sale of investments (1,007) Change in unrealized appreciation (depreciation) in value of investments (156,648) (44,923) Expenses (note 5) Management fees 40,642 Insurance fees 13,854 Administration fees 2,036 Total operating expenses 56,532 Management fees waived/absorbed by the Manager (1,729) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (99,726)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

154 Sun Life Granite Enhanced Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (99,726) Holder of Redeemable Unit Transactions Proceeds from Units Issued 7,050,341 Redemption of Units (499,055) 6,551,286 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 6,451,560 Net Assets Attributable to Holders of Redeemable Units at end of period 6,451,560

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (99,726) Adjustments for: Net realized gain (loss) on sale of investments 1,007 Change in unrealized appreciation (depreciation) in value of investments 156,648 Purchases of investments (6,199,193) Proceeds from sale of investments 48,634 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (441) Increase (decrease) in fees & expenses payable 3,500 Net Cash provided by (used in) Operating Activities (6,089,571) Cash Flows from (used in) Financing Activities Proceeds from units issued 6,937,290 Redemption of units (473,248) Net Cash provided by (used in) Financing Activities 6,464,042 Net increase (decrease) in cash 374,471 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 374,471 Distribution Income Received 112,732

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

155 Sun Life Granite Enhanced Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Enhanced Income Portfolio (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund seeks to generate a consistent level of Sun Life Granite Enhanced Income income by investing primarily in a mix of income-focused fixed income and Portfolio, Series I 612,652 6,554,021 6,397,373 equity mutual funds (including exchange-traded funds), with an emphasis towards higher yielding investments. Please refer to note 8 in the Total Investments 6,554,021 6,397,373 99.16 accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities 54,187 0.84 various risks. Total Net Assets 6,451,560 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Cash 49,327 Dynamic Equity Income Fund, Series O 527,106 3,595,140 3,499,987 Guardian Global Dividend Growth Fund, Series I 547,291 9,095,210 10,343,808 RBC Global High Yield Bond Fund, Series O 1,246,036 13,300,586 12,526,529 Sentry REIT Fund, Series I 317,216 5,245,155 5,381,885 Sun Life BlackRock Canadian Universe Bond Fund, Series I 447,934 4,810,930 4,816,318 Sun Life Dynamic Energy Fund, Series I 408,505 3,995,791 3,570,740 Sun Life MFS Canadian Bond Fund, Series I 595,112 8,262,586 8,073,522 Sun Life Money Market Fund, Series I 356,603 3,566,034 3,566,034 Sun Life NWQ Flexible Income Fund, Series I 744,594 7,533,283 7,185,185 Sun Life Sentry Global Mid Cap Fund, Series I 1,900 19,453 18,333 Sun Life Sentry Infrastructure Fund, Series I 975,578 9,658,378 8,880,592 Sun Life Sentry Value Fund, Series I 272,692 3,743,413 3,616,746

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

156 Sun Life Granite Enhanced Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Enhanced Income - Estate Series A Sun Life Granite Enhanced Income - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.50 Net asset value, end of period ($)(1) 9.92 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 3,159,282 Net assets(1) 496 Number of units outstanding(1) 332,458 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.02 Management expense ratio (%)(2) 3.02 Management expense ratio before waivers (%)(2) 3.12 Management expense ratio before waivers (%)(2) 3.12 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

Sun Life Granite Enhanced Income - Estate Series F Sun Life Granite Enhanced Income - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.58 Net asset value, end of period ($)(1) 9.95 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 479 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.89 Management expense ratio (%)(2) 0.86 Management expense ratio before waivers (%)(2) 1.99 Management expense ratio before waivers (%)(2) 0.86 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

Sun Life Granite Enhanced Income - Investment Series A Sun Life Granite Enhanced Income - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.52 Net asset value, end of period ($)(1) 9.93 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,158,578 Net assets(1) 101,030 Number of units outstanding(1) 121,665 Number of units outstanding(1) 10,177 Management expense ratio (%)(2) 2.71 Management expense ratio (%)(2) 2.69 Management expense ratio before waivers (%)(2) 2.80 Management expense ratio before waivers (%)(2) 2.78 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

Sun Life Granite Enhanced Income - Investment Series F Sun Life Granite Enhanced Income - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.60 Net asset value, end of period ($)(1) 9.96 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 480 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.56 Management expense ratio (%)(2) 0.52 Management expense ratio before waivers (%)(2) 1.65 Management expense ratio before waivers (%)(2) 0.52 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

Sun Life Granite Enhanced Income - Lifetime Advantage Series A Sun Life Granite Enhanced Income - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.43 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 401,875 Net assets(1) 495 Number of units outstanding(1) 42,637 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.18 Management expense ratio (%)(2) 4.12 Management expense ratio before waivers (%)(2) 4.26 Management expense ratio before waivers (%)(2) 4.21 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

157 Sun Life Granite Enhanced Income

Financial Highlights (Continued)

Sun Life Granite Enhanced Income - Lifetime Advantage Series F Sun Life Granite Enhanced Income - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.51 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 475 Net assets(1) 48,481 Number of units outstanding(1) 50 Number of units outstanding(1) 4,878 Management expense ratio (%)(2) 2.99 Management expense ratio (%)(2) 1.94 Management expense ratio before waivers (%)(2) 3.07 Management expense ratio before waivers (%)(2) 1.94 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

Sun Life Granite Enhanced Income - Protect Series A Sun Life Granite Enhanced Income - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.46 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,577,426 Net assets(1) 496 Number of units outstanding(1) 166,727 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.66 Management expense ratio (%)(2) 3.65 Management expense ratio before waivers (%)(2) 3.75 Management expense ratio before waivers (%)(2) 3.75 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

Sun Life Granite Enhanced Income - Protect Series F Sun Life Granite Enhanced Income - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.54 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 477 Net assets(1) 496 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.53 Management expense ratio (%)(2) 1.48 Management expense ratio before waivers (%)(2) 2.62 Management expense ratio before waivers (%)(2) 1.48 Portfolio turnover rate (%)(3) 1.80 Portfolio turnover rate (%)(3) 1.80

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

158 Sun Life Granite Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 10,634,100 Cash 119,236 Receivable for investment units sold - Subscriptions receivable 170,968 Distribution receivable from underlying fund - Other receivable 2,248 10,926,552 Liabilities Current liabilities Bank indebtedness - Redemptions payable 2 Payable for investment units purchased 148,641 Payable for fees & expenses 6,287 154,930 Net Assets Attributable to Holders of Redeemable Units 10,771,622

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 621,882 Net realized gain (loss) on sale of investments (433) Change in unrealized appreciation (depreciation) in value of investments (429,659) 191,790 Expenses (note 5) Management fees 70,016 Insurance fees 26,079 Administration fees 3,814 Total operating expenses 99,909 Management fees waived/absorbed by the Manager (1,567) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 93,448

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

159 Sun Life Granite Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 93,448 Holder of Redeemable Unit Transactions Proceeds from Units Issued 10,810,247 Redemption of Units (132,073) 10,678,174 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 10,771,622 Net Assets Attributable to Holders of Redeemable Units at end of period 10,771,622

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 93,448 Adjustments for: Net realized gain (loss) on sale of investments 433 Change in unrealized appreciation (depreciation) in value of investments 429,659 Purchases of investments (11,002,884) Proceeds from sale of investments 87,333 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (2,248) Increase (decrease) in fees & expenses payable 6,287 Net Cash provided by (used in) Operating Activities (10,387,972) Cash Flows from (used in) Financing Activities Proceeds from units issued 10,639,279 Redemption of units (132,071) Net Cash provided by (used in) Financing Activities 10,507,208 Net increase (decrease) in cash 119,236 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 119,236 Distribution Income Received 621,882

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

160 Sun Life Granite Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Growth Portfolio (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund's investment objective is to seek capital Sun Life Granite Growth appreciation by investing primarily in equity mutual funds and, to a lesser Portfolio, Series I 791,870 11,063,759 10,634,100 extent, fixed income mutual funds. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Total Investments 11,063,759 10,634,100 98.72

Other Assets less Liabilities 137,522 1.28 Financial Instrument Risk of the Underlying Fund(s)

Total Net Assets 10,771,622 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Top 25 Holdings of Underlying Fund detailed risk analyses of the underlying fund(s) are disclosed in the financial As at December 31, 2015 statements of the underlying fund(s).

Number of Average Fair Investment Shares Cost ($) Value ($) ABSL Umbrella UCITS Fund 18,539 2,423,283 2,524,309 Beutel Goodman Canadian Equity Fund, Class I 449,891 15,188,736 14,810,921 Brandes U.S. Small Cap Equity Fund, Class I 273,322 5,152,685 5,405,493 Invesco Global Real Estate Fund, Series I 1,077,885 12,315,221 14,494,320 iShares Core S&P 500 ETF 128,772 28,217,142 36,646,598 RBC Global High Yield Bond Fund, Series O 860,826 9,194,583 8,653,967 Sun Life Beutel Goodman Canadian Bond Fund, Series I 831,354 8,291,018 8,229,574 Sun Life BlackRock Canadian Composite Equity Fund, Series I 2,033,171 20,322,227 19,003,843 Sun Life BlackRock Canadian Universe Bond Fund, Series I 2,293,919 24,758,582 24,664,908 Sun Life Dynamic Energy Income Fund, Series I 481,784 4,718,953 4,211,275 Sun Life MFS Canadian Equity Growth Fund, Series I 226,326 10,056,832 9,869,814 Sun Life MFS International Growth Fund, Series I 868,404 11,699,741 13,471,206 Sun Life MFS International Value Fund, Series I 2,264,722 36,205,843 46,066,024 Sun Life MFS U.S. Growth Fund, Series I 835,340 19,221,411 22,632,438 Sun Life Money Market Fund, Series I 1,264,798 12,647,976 12,647,976 Sun Life NWQ Flexible Income Fund, Series I 302,910 3,053,470 2,923,021 Sun Life Schroder Emerging Markets Fund, Series I 1,007,830 8,610,867 8,775,781 Sun Life Sentry Global Mid Cap Fund, Series I 301,984 3,038,224 2,914,147 Sun Life Sentry Infrastructure Fund, Series I 2,486,039 24,604,770 22,630,160 Sun Life Sionna Canadian Small Cap Equity Class, Series I 330,189 3,224,140 2,796,274

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

161 Sun Life Granite Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Growth - Estate Series A Sun Life Granite Growth - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.03 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,627,391 Net assets(1) 505 Number of units outstanding(1) 162,278 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.00 Management expense ratio (%)(2) 3.00 Management expense ratio before waivers (%)(2) 3.04 Management expense ratio before waivers (%)(2) 3.04 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

Sun Life Granite Growth - Estate Series F Sun Life Granite Growth - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.12 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 506 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.89 Management expense ratio (%)(2) 0.81 Management expense ratio before waivers (%)(2) 1.94 Management expense ratio before waivers (%)(2) 0.81 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

Sun Life Granite Growth - Investment Series A Sun Life Granite Growth - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.07 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 5,004,296 Net assets(1) 505 Number of units outstanding(1) 497,196 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.64 Management expense ratio (%)(2) 2.64 Management expense ratio before waivers (%)(2) 2.68 Management expense ratio before waivers (%)(2) 2.68 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

Sun Life Granite Growth - Investment Series F Sun Life Granite Growth - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.14 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 507 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.55 Management expense ratio (%)(2) 0.47 Management expense ratio before waivers (%)(2) 1.60 Management expense ratio before waivers (%)(2) 0.47 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

Sun Life Granite Growth - Lifetime Advantage Series A Sun Life Granite Growth - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.97 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 3,144,483 Net assets(1) 504 Number of units outstanding(1) 315,422 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.97 Management expense ratio (%)(2) 3.97 Management expense ratio before waivers (%)(2) 4.05 Management expense ratio before waivers (%)(2) 4.05 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

162 Sun Life Granite Growth

Financial Highlights (Continued)

Sun Life Granite Growth - Lifetime Advantage Series F Sun Life Granite Growth - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.07 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 153,533 Net assets(1) 505 Number of units outstanding(1) 15,248 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.93 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 3.01 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

Sun Life Granite Growth - Protect Series A Sun Life Granite Growth - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 836,362 Net assets(1) 505 Number of units outstanding(1) 83,798 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.75 Management expense ratio (%)(2) 3.75 Management expense ratio before waivers (%)(2) 3.75 Management expense ratio before waivers (%)(2) 3.75 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

Sun Life Granite Growth - Protect Series F Sun Life Granite Growth - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.06 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 503 Net assets(1) 505 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.77 Management expense ratio (%)(2) 1.64 Management expense ratio before waivers (%)(2) 2.77 Management expense ratio before waivers (%)(2) 1.64 Portfolio turnover rate (%)(3) 1.82 Portfolio turnover rate (%)(3) 1.82

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

163 Sun Life Granite Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 7,571,210 Cash 68,309 Receivable for investment units sold - Subscriptions receivable 10,307 Distribution receivable from underlying fund - Other receivable - 7,649,826 Liabilities Current liabilities Bank indebtedness - Redemptions payable 408 Payable for investment units purchased 78,573 Payable for fees & expenses 3,875 82,856 Net Assets Attributable to Holders of Redeemable Units 7,566,970

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 100,613 Net realized gain (loss) on sale of investments 811 Change in unrealized appreciation (depreciation) in value of investments (68,656) 32,768 Expenses (note 5) Management fees 43,030 Insurance fees 13,814 Administration fees 2,177 Total operating expenses 59,021 Management fees waived/absorbed by the Manager (3,750) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (22,503)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

164 Sun Life Granite Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (22,503) Holder of Redeemable Unit Transactions Proceeds from Units Issued 7,818,920 Redemption of Units (229,447) 7,589,473 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 7,566,970 Net Assets Attributable to Holders of Redeemable Units at end of period 7,566,970

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (22,503) Adjustments for: Net realized gain (loss) on sale of investments (811) Change in unrealized appreciation (depreciation) in value of investments 68,656 Purchases of investments (7,721,072) Proceeds from sale of investments 160,590 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 3,875 Net Cash provided by (used in) Operating Activities (7,511,265) Cash Flows from (used in) Financing Activities Proceeds from units issued 7,808,613 Redemption of units (229,039) Net Cash provided by (used in) Financing Activities 7,579,574 Net increase (decrease) in cash 68,309 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 68,309 Distribution Income Received 100,613

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

165 Sun Life Granite Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Income Portfolio (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to generate a consistent level of income by Sun Life Granite Income investing primarily in a mix of income-focused fixed income and equity mutual Portfolio, Series I 707,325 7,639,866 7,571,210 funds (including exchange-traded funds). Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the Total Investments 7,639,866 7,571,210 100.06 various risks. Other Assets less Liabilities (4,240) (0.06) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 7,566,970 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Cash 64,293 Dynamic Equity Income Fund, Series O 346,240 2,366,418 2,299,033 Guardian Global Dividend Growth Fund, Series I 575,168 9,657,926 10,870,674 iShares iBoxx $ Investment Grade Corporate Bond ETF 15,183 2,230,864 2,404,553 RBC Global High Yield Bond Fund, Series O 983,683 10,438,703 9,889,060 Sentry REIT Fund, Series I 411,379 6,888,069 6,979,458 Sun Life Dynamic Energy Fund, Series I 116,506 1,128,385 1,018,377 Sun Life MFS Canadian Bond Fund, Series I 1,758,392 24,382,739 23,855,044 Sun Life Money Market Fund, Series I 1,313,712 13,137,124 13,137,124 Sun Life NWQ Flexible Income Fund, Series I 510,028 5,134,723 4,921,669 Sun Life Sentry Infrastructure Fund, Series I 1,542,660 15,234,440 14,042,680 Sun Life Sentry Value Fund, Series I 367,114 5,058,729 4,869,067

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

166 Sun Life Granite Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Income - Estate Series A Sun Life Granite Income - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.68 Net asset value, end of period ($)(1) 9.97 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 5,118,490 Net assets(1) 499 Number of units outstanding(1) 529,005 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.77 Management expense ratio (%)(2) 2.75 Management expense ratio before waivers (%)(2) 2.97 Management expense ratio before waivers (%)(2) 2.97 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

Sun Life Granite Income - Estate Series F Sun Life Granite Income - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.75 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 487 Net assets(1) 124,648 Number of units outstanding(1) 50 Number of units outstanding(1) 12,466 Management expense ratio (%)(2) 1.77 Management expense ratio (%)(2) 0.84 Management expense ratio before waivers (%)(2) 1.98 Management expense ratio before waivers (%)(2) 0.84 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

Sun Life Granite Income - Investment Series A Sun Life Granite Income - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.69 Net asset value, end of period ($)(1) 9.98 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,123,764 Net assets(1) 499 Number of units outstanding(1) 115,934 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.58 Management expense ratio (%)(2) 2.55 Management expense ratio before waivers (%)(2) 2.77 Management expense ratio before waivers (%)(2) 2.75 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

Sun Life Granite Income - Investment Series F Sun Life Granite Income - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.77 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 488 Net assets(1) 146,958 Number of units outstanding(1) 50 Number of units outstanding(1) 14,689 Management expense ratio (%)(2) 1.45 Management expense ratio (%)(2) 0.51 Management expense ratio before waivers (%)(2) 1.64 Management expense ratio before waivers (%)(2) 0.51 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

Sun Life Granite Income - Lifetime Advantage Series A Sun Life Granite Income - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.59 Net asset value, end of period ($)(1) 9.96 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 576,767 Net assets(1) 65,361 Number of units outstanding(1) 60,116 Number of units outstanding(1) 6,562 Management expense ratio (%)(2) 4.03 Management expense ratio (%)(2) 4.03 Management expense ratio before waivers (%)(2) 4.18 Management expense ratio before waivers (%)(2) 4.18 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

167 Sun Life Granite Income

Financial Highlights (Continued)

Sun Life Granite Income - Lifetime Advantage Series F Sun Life Granite Income - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.68 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 484 Net assets(1) 40,207 Number of units outstanding(1) 50 Number of units outstanding(1) 4,026 Management expense ratio (%)(2) 2.90 Management expense ratio (%)(2) 1.92 Management expense ratio before waivers (%)(2) 3.05 Management expense ratio before waivers (%)(2) 1.92 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

Sun Life Granite Income - Protect Series A Sun Life Granite Income - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.63 Net asset value, end of period ($)(1) 9.96 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 366,837 Net assets(1) 498 Number of units outstanding(1) 38,088 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.55 Management expense ratio (%)(2) 3.53 Management expense ratio before waivers (%)(2) 3.74 Management expense ratio before waivers (%)(2) 3.73 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

Sun Life Granite Income - Protect Series F Sun Life Granite Income - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.71 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 485 Net assets(1) 498 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.40 Management expense ratio (%)(2) 1.47 Management expense ratio before waivers (%)(2) 2.59 Management expense ratio before waivers (%)(2) 1.47 Portfolio turnover rate (%)(3) 5.29 Portfolio turnover rate (%)(3) 5.29

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

168 Sun Life Granite Moderate

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 18,919,780 Cash 260,049 Receivable for investment units sold 8,371 Subscriptions receivable 44,693 Distribution receivable from underlying fund - Other receivable 1,232 19,234,125 Liabilities Current liabilities Bank indebtedness - Redemptions payable 2,185 Payable for investment units purchased 278,478 Payable for fees & expenses 10,146 290,809 Net Assets Attributable to Holders of Redeemable Units 18,943,316

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 874,052 Net realized gain (loss) on sale of investments 108 Change in unrealized appreciation (depreciation) in value of investments (612,368) 261,792 Expenses (note 5) Management fees 88,242 Insurance fees 28,101 Administration fees 4,444 Total operating expenses 120,787 Management fees waived/absorbed by the Manager (7,628) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 148,633

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

169 Sun Life Granite Moderate

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 148,633 Holder of Redeemable Unit Transactions Proceeds from Units Issued 18,943,098 Redemption of Units (148,415) 18,794,683 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 18,943,316 Net Assets Attributable to Holders of Redeemable Units at end of period 18,943,316

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 148,633 Adjustments for: Net realized gain (loss) on sale of investments (108) Change in unrealized appreciation (depreciation) in value of investments 612,368 Purchases of investments (19,318,223) Proceeds from sale of investments 56,290 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (1,232) Increase (decrease) in fees & expenses payable 10,146 Net Cash provided by (used in) Operating Activities (18,492,126) Cash Flows from (used in) Financing Activities Proceeds from units issued 18,898,405 Redemption of units (146,230) Net Cash provided by (used in) Financing Activities 18,752,175 Net increase (decrease) in cash 260,049 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 260,049 Distribution Income Received 874,052

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

170 Sun Life Granite Moderate

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Granite Moderate Portfolio (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund's investment objective is to seek income and Sun Life Granite Moderate capital appreciation by investing primarily in a mix of fixed income and equity Portfolio, Series I 1,485,536 19,532,148 18,919,780 mutual funds. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Total Investments 19,532,148 18,919,780 99.88

Other Assets less Liabilities 23,536 0.12 Financial Instrument Risk of the Underlying Fund(s)

Total Net Assets 18,943,316 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Top 25 Holdings of Underlying Fund detailed risk analyses of the underlying fund(s) are disclosed in the financial As at December 31, 2015 statements of the underlying fund(s).

Number of Average Fair Investment Shares Cost ($) Value ($) ABSL Umbrella UCITS Fund 11,461 1,498,029 1,560,482 Beutel Goodman Canadian Equity Fund, Class I 488,299 16,663,346 16,075,352 Brandes U.S. Small Cap Equity Fund, Class I 298,795 5,698,058 5,909,274 Invesco Global Real Estate Fund, Series I 531,819 6,379,854 7,151,368 iShares Core S&P 500 ETF 128,201 30,578,496 36,484,100 RBC Global High Yield Bond Fund, Series O 2,830,832 30,120,528 28,458,638 Sun Life Beutel Goodman Canadian Bond Fund, Series I 3,653,108 36,384,405 36,162,115 Sun Life BlackRock Canadian Composite Equity Fund, Series I 2,183,312 22,318,562 20,407,199 Sun Life BlackRock Canadian Universe Bond Fund, Series I 10,061,743 108,368,593 108,186,883 Sun Life Dynamic Energy Income Fund, Series I 404,461 3,953,987 3,535,393 Sun Life MFS Canadian Equity Growth Fund, Series I 242,870 11,002,267 10,591,309 Sun Life MFS International Growth Fund, Series I 956,669 13,265,142 14,840,425 Sun Life MFS International Value Fund, Series I 2,502,158 41,956,719 50,895,641 Sun Life MFS U.S. Growth Fund, Series I 849,233 19,726,023 23,008,868 Sun Life Money Market Fund, Series I 4,007,427 40,074,270 40,074,270 Sun Life NWQ Flexible Income Fund, Series I 1,231,952 12,383,536 11,888,087 Sun Life Schroder Emerging Markets Fund, Series I 885,202 7,660,128 7,707,987 Sun Life Sentry Global Mid Cap Fund, Series I 239,912 2,412,650 2,315,149 Sun Life Sentry Infrastructure Fund, Series I 1,778,456 17,516,358 16,189,106 Sun Life Sionna Canadian Small Cap Equity Class, Series I 266,998 2,576,312 2,261,125 Templeton Global Bond Fund, Series O 1,484,916 19,305,777 19,125,723

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

171 Sun Life Granite Moderate

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Life Granite Moderate - Estate Series A Sun Life Granite Moderate - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.07 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 9,004,693 Net assets(1) 506 Number of units outstanding(1) 894,525 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.74 Management expense ratio (%)(2) 2.72 Management expense ratio before waivers (%)(2) 2.93 Management expense ratio before waivers (%)(2) 2.93 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

Sun Life Granite Moderate - Estate Series F Sun Life Granite Moderate - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.10 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 505 Net assets(1) 125,962 Number of units outstanding(1) 50 Number of units outstanding(1) 12,423 Management expense ratio (%)(2) 1.72 Management expense ratio (%)(2) 0.79 Management expense ratio before waivers (%)(2) 1.92 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

Sun Life Granite Moderate - Investment Series A Sun Life Granite Moderate - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.05 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 4,121,554 Net assets(1) 457,951 Number of units outstanding(1) 410,144 Number of units outstanding(1) 45,267 Management expense ratio (%)(2) 2.48 Management expense ratio (%)(2) 2.48 Management expense ratio before waivers (%)(2) 2.67 Management expense ratio before waivers (%)(2) 2.67 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

Sun Life Granite Moderate - Investment Series F Sun Life Granite Moderate - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.12 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 506 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.40 Management expense ratio (%)(2) 0.46 Management expense ratio before waivers (%)(2) 1.59 Management expense ratio before waivers (%)(2) 0.46 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

Sun Life Granite Moderate - Lifetime Advantage Series A Sun Life Granite Moderate - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.94 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,357,664 Net assets(1) 159,378 Number of units outstanding(1) 237,277 Number of units outstanding(1) 15,784 Management expense ratio (%)(2) 4.05 Management expense ratio (%)(2) 3.98 Management expense ratio before waivers (%)(2) 4.20 Management expense ratio before waivers (%)(2) 4.13 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

172 Sun Life Granite Moderate

Financial Highlights (Continued)

Sun Life Granite Moderate - Lifetime Advantage Series F Sun Life Granite Moderate - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.03 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 501 Net assets(1) 163,169 Number of units outstanding(1) 50 Number of units outstanding(1) 16,118 Management expense ratio (%)(2) 2.85 Management expense ratio (%)(2) 1.87 Management expense ratio before waivers (%)(2) 3.00 Management expense ratio before waivers (%)(2) 1.87 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

Sun Life Granite Moderate - Protect Series A Sun Life Granite Moderate - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,548,907 Net assets(1) 505 Number of units outstanding(1) 254,943 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.16 Management expense ratio (%)(2) 3.15 Management expense ratio before waivers (%)(2) 3.37 Management expense ratio before waivers (%)(2) 3.38 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

Sun Life Granite Moderate - Protect Series F Sun Life Granite Moderate - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.07 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 503 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.20 Management expense ratio (%)(2) 1.30 Management expense ratio before waivers (%)(2) 2.43 Management expense ratio before waivers (%)(2) 1.30 Portfolio turnover rate (%)(3) 0.88 Portfolio turnover rate (%)(3) 0.88

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

173 Sun MFS Canadian Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 711,127 Cash 41,089 Receivable for investment units sold 929 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 753,145 Liabilities Current liabilities Bank indebtedness - Redemptions payable 2 Payable for investment units purchased 42,000 Payable for fees & expenses 294 42,296 Net Assets Attributable to Holders of Redeemable Units 710,849

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 19,765 Net realized gain (loss) on sale of investments (1,274) Change in unrealized appreciation (depreciation) in value of investments (17,415) 1,076 Expenses (note 5) Management fees 3,993 Insurance fees 895 Administration fees 316 Total operating expenses 5,204 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (4,128)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

174 Sun MFS Canadian Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (4,128) Holder of Redeemable Unit Transactions Proceeds from Units Issued 796,519 Redemption of Units (81,542) 714,977 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 710,849 Net Assets Attributable to Holders of Redeemable Units at end of period 710,849

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (4,128) Adjustments for: Net realized gain (loss) on sale of investments 1,274 Change in unrealized appreciation (depreciation) in value of investments 17,415 Purchases of investments (774,083) Proceeds from sale of investments 85,338 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 294 Net Cash provided by (used in) Operating Activities (673,890) Cash Flows from (used in) Financing Activities Proceeds from units issued 796,519 Redemption of units (81,540) Net Cash provided by (used in) Financing Activities 714,979 Net increase (decrease) in cash 41,089 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 41,089 Distribution Income Received 19,765

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

175 Sun MFS Canadian Bond

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) Sun Life MFS Canadian Bond Province of Quebec Fund, Series I 52,418 728,542 711,127 4.25%, Dec 1, 2021 1,230,000 1,407,637 1,407,348 Royal Bank of Canada Total Investments 728,542 711,127 100.04 4.93%, Jul 16, 2025 2,070,000 2,369,465 2,448,075 The Toronto-Dominion Bank Other Assets less Liabilities (278) (0.04) 3.23%, Jul 24, 2024 2,250,000 2,332,611 2,349,608 Total Net Assets 710,849 100.00 Discussion of Financial Risk Management Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk The Fund invests in the Sun Life MFS Canadian Bond Fund (the "underlying Number of Average Fair fund"). The underlying fund aims to provide investors with high investment Investment Shares Cost ($) Value ($) returns primarily through income, with reasonable safety of capital. The Bank of America Corp. underlying fund may invest up to 30% of the fund's assets in foreign debt 3.95%, Apr 21, 2025 850,000 1,043,205 1,151,979 instruments. Please refer to note 8 in the accompanying notes to the financial Bank of Montreal statements for an explanation of the various risks. 4.61%, Sep 10, 2025 1,925,000 2,231,694 2,229,276 Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Financial Instrument Risk of the Underlying Fund(s) Canada Housing Trust No. 1 1.70%, Dec 15, 2017 2,220,000 2,258,656 2,262,746 The Fund is indirectly exposed to currency risk, interest rate risk, other market Canada Housing Trust No. 1 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), 1.95%, Jun 15, 2019 1,235,000 1,276,178 1,275,584 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Canadian Government Bond to note 8 for an explanation of the management of the financial risks. The 5.75%, Jun 1, 2033 560,000 851,922 865,969 detailed risk analyses of the underlying fund(s) are disclosed in the financial Canadian Government Bond statements of the underlying fund(s). 4.00%, Jun 1, 2041 705,000 931,906 957,714 Canadian Government Bond 2.75%, Dec 1, 2064 795,000 912,660 945,494 Canadian Imperial Bank of Commerce 1.85%, Jul 14, 2020 1,315,000 1,315,348 1,313,417 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Alberta 3.45%, Dec 1, 2043 1,685,000 1,790,002 1,738,213 Province of British Columbia 3.25%, Dec 18, 2021 1,625,000 1,773,200 1,778,619 Province of Manitoba 4.65%, Mar 5, 2040 1,190,000 1,416,007 1,441,849 Province of Manitoba 4.10%, Mar 5, 2041 1,440,000 1,636,971 1,617,203 Province of Ontario 4.30%, Mar 8, 2017 2,245,000 2,366,638 2,340,488 Province of Ontario 4.20%, Mar 8, 2018 1,750,000 1,904,473 1,876,450 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212 Province of Ontario 3.45%, Jun 2, 2045 1,195,000 1,215,915 1,250,156 Province of Quebec 4.50%, Dec 1, 2016 2,570,000 2,693,863 2,659,750 Province of Quebec 4.50%, Dec 1, 2019 2,130,000 2,398,102 2,394,732

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

176 Sun MFS Canadian Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Canadian Bond - Estate Series A Sun MFS Canadian Bond - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 349,905 Net assets(1) 505 Number of units outstanding(1) 35,133 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.26 Management expense ratio (%)(2) 2.23 Management expense ratio before waivers (%)(2) 2.26 Management expense ratio before waivers (%)(2) 2.23 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

Sun MFS Canadian Bond - Estate Series F Sun MFS Canadian Bond - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.00 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.66 Management expense ratio (%)(2) 0.53 Management expense ratio before waivers (%)(2) 1.66 Management expense ratio before waivers (%)(2) 0.53 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

Sun MFS Canadian Bond - Investment Series A Sun MFS Canadian Bond - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 237,223 Net assets(1) 505 Number of units outstanding(1) 23,773 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.06 Management expense ratio (%)(2) 2.06 Management expense ratio before waivers (%)(2) 2.06 Management expense ratio before waivers (%)(2) 2.06 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

Sun MFS Canadian Bond - Investment Series F Sun MFS Canadian Bond - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.01 Net asset value, end of period ($)(1) 10.13 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 500 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.50 Management expense ratio (%)(2) 0.36 Management expense ratio before waivers (%)(2) 1.50 Management expense ratio before waivers (%)(2) 0.36 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

Sun MFS Canadian Bond - Lifetime Advantage Series A Sun MFS Canadian Bond - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.91 Net asset value, end of period ($)(1) 10.09 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 82,651 Net assets(1) 505 Number of units outstanding(1) 8,338 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.01 Management expense ratio (%)(2) 3.01 Management expense ratio before waivers (%)(2) 3.01 Management expense ratio before waivers (%)(2) 3.01 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

177 Sun MFS Canadian Bond

Financial Highlights (Continued)

Sun MFS Canadian Bond - Lifetime Advantage Series F Sun MFS Canadian Bond - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.95 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 497 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.44 Management expense ratio (%)(2) 1.31 Management expense ratio before waivers (%)(2) 2.44 Management expense ratio before waivers (%)(2) 1.31 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

Sun MFS Canadian Bond - Protect Series A Sun MFS Canadian Bond - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.92 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 35,031 Net assets(1) 505 Number of units outstanding(1) 3,532 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.82 Management expense ratio (%)(2) 2.77 Management expense ratio before waivers (%)(2) 2.82 Management expense ratio before waivers (%)(2) 2.77 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

Sun MFS Canadian Bond - Protect Series F Sun MFS Canadian Bond - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 10.12 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 498 Net assets(1) 506 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.21 Management expense ratio (%)(2) 1.07 Management expense ratio before waivers (%)(2) 2.21 Management expense ratio before waivers (%)(2) 1.07 Portfolio turnover rate (%)(3) 24.16 Portfolio turnover rate (%)(3) 24.16

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

178 Sun MFS Canadian Equity Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 233,235 Cash - Receivable for investment units sold 417 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 46 233,698 Liabilities Current liabilities Bank indebtedness 411 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 116 528 Net Assets Attributable to Holders of Redeemable Units 233,170

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,898 Net realized gain (loss) on sale of investments (690) Change in unrealized appreciation (depreciation) in value of investments (7,486) (2,278) Expenses (note 5) Management fees 719 Insurance fees 157 Administration fees 36 Total operating expenses 912 Management fees waived/absorbed by the Manager (7) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,183)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

179 Sun MFS Canadian Equity Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (3,183) Holder of Redeemable Unit Transactions Proceeds from Units Issued 283,462 Redemption of Units (47,109) 236,353 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 233,170 Net Assets Attributable to Holders of Redeemable Units at end of period 233,170

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (3,183) Adjustments for: Net realized gain (loss) on sale of investments 690 Change in unrealized appreciation (depreciation) in value of investments 7,486 Purchases of investments (256,207) Proceeds from sale of investments 14,379 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (46) Increase (decrease) in fees & expenses payable 116 Net Cash provided by (used in) Operating Activities (236,765) Cash Flows from (used in) Financing Activities Proceeds from units issued 283,462 Redemption of units (47,108) Net Cash provided by (used in) Financing Activities 236,354 Net increase (decrease) in cash (411) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (411) Distribution Income Received 5,898

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

180 Sun MFS Canadian Equity Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Canadian Equity Growth Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund aims for long-term capital growth Sun Life MFS Canadian Equity Growth primarily by investing in Canadian growth equity securities. The underlying Fund, Series I 5,348 240,721 233,235 fund may invest in global equity securities or other mutual funds. The underlying fund may invest up to 40% of the fund's assets in non-Canadian Total Investments 240,721 233,235 100.03 securities. Please refer to note 8 in the accompanying notes to the financial Other Assets less Liabilities (65) (0.03) statements for an explanation of the various risks. Total Net Assets 233,170 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Agrium Inc. 10,923 1,281,050 1,350,847 Alimentation Couche-Tard Inc., Class B 32,302 1,228,770 1,967,515 Bank of Montreal 12,437 946,133 971,081 Canadian National Railway Co. 50,927 3,425,009 3,940,175 Canadian Natural Resources Ltd. 57,525 1,855,394 1,738,405 Canadian Pacific Railway Ltd. 9,325 1,912,476 1,648,232 Corp., Ltd., Class A 8,705 1,042,681 1,028,583 Cash 1,576,419 CCL Industries Inc., Class B 4,157 561,246 932,706 Constellation Software Inc. 1,540 661,795 888,395 Element Financial Corp. 93,250 1,452,390 1,557,275 Enbridge Inc. 48,555 2,558,438 2,233,530 Gildan Activewear Inc. 25,477 1,026,708 1,002,265 Goldcorp Inc. 74,334 1,957,880 1,188,601 Intact Financial Corp. 10,903 872,670 966,878 Limited 20,720 1,213,330 1,353,845 Magna International Inc. 26,087 1,259,613 1,464,002 Manulife Financial Corp. 113,941 2,448,867 2,363,136 Royal Bank of Canada 64,315 4,450,914 4,768,957 Suncor Energy Inc. 76,483 2,619,739 2,731,973 The Bank of Nova Scotia 47,075 2,694,581 2,634,788 The Toronto-Dominion Bank 91,196 4,321,496 4,946,471 Thomson Reuters Corp. 33,147 1,563,645 1,737,234 TransCanada Corporation 28,275 1,254,622 1,277,747 Valeant Pharmaceuticals International, Inc. 15,563 2,583,855 2,187,535

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

181 Sun MFS Canadian Equity Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Canadian Equity Growth - Estate Series A Sun MFS Canadian Equity Growth - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.51 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 19,166 Net assets(1) 495 Number of units outstanding(1) 2,014 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.20 Management expense ratio (%)(2) 3.20 Management expense ratio before waivers (%)(2) 3.22 Management expense ratio before waivers (%)(2) 3.21 Portfolio turnover rate (%)(3) 21.63 Portfolio turnover rate (%)(3) 21.63

Sun MFS Canadian Equity Growth - Estate Series F Sun MFS Canadian Equity Growth - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.59 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 480 Net assets(1) 496 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.07 Management expense ratio (%)(2) 0.97 Management expense ratio before waivers (%)(2) 2.09 Management expense ratio before waivers (%)(2) 0.97 Portfolio turnover rate (%)(3) 21.63 Portfolio turnover rate (%)(3) 21.63

Sun MFS Canadian Equity Growth - Investment Series A Sun MFS Canadian Equity Growth - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.55 Net asset value, end of period ($)(1) 9.92 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 211,060 Net assets(1) 496 Number of units outstanding(1) 22,102 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.57 Management expense ratio (%)(2) 2.57 Management expense ratio before waivers (%)(2) 2.59 Management expense ratio before waivers (%)(2) 2.59 Portfolio turnover rate (%)(3) 21.63 Portfolio turnover rate (%)(3) 21.63

Sun MFS Canadian Equity Growth - Investment Series F Sun MFS Canadian Equity Growth - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.62 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 481 Net assets(1) 496 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.62 Management expense ratio (%)(2) 0.52 Management expense ratio before waivers (%)(2) 1.64 Management expense ratio before waivers (%)(2) 0.52 Portfolio turnover rate (%)(3) 21.63 Portfolio turnover rate (%)(3) 21.63

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

182 Sun MFS Canadian Equity Growth Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,952 Cash - Receivable for investment units sold 6 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 1,958 Liabilities Current liabilities Bank indebtedness 6 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 1 8 Net Assets Attributable to Holders of Redeemable Units 1,950

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 85 Net realized gain (loss) on sale of investments (1) Change in unrealized appreciation (depreciation) in value of investments (108) (24) Expenses (note 5) Management fees 13 Insurance fees 13 Administration fees 1 Total operating expenses 27 Management fees waived/absorbed by the Manager (2) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (49)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

183 Sun MFS Canadian Equity Growth Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (49) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,000 Redemption of Units (1) 1,999 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,950 Net Assets Attributable to Holders of Redeemable Units at end of period 1,950

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (49) Adjustments for: Net realized gain (loss) on sale of investments 1 Change in unrealized appreciation (depreciation) in value of investments 108 Purchases of investments (2,085) Proceeds from sale of investments 18 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1 Net Cash provided by (used in) Operating Activities (2,006) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,000 Redemption of units - Net Cash provided by (used in) Financing Activities 2,000 Net increase (decrease) in cash (6) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (6) Distribution Income Received 85

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

184 Sun MFS Canadian Equity Growth Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS Canadian Equity Growth Canadian Equity Growth Fund as its main investment. Please refer to note 8 in Fund, Series I 31 1,449 1,354 the accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 44 611 598

Total Investments 2,060 1,952 100.10 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities (2) (0.10) The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 1,950 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS Canadian Equity Growth Fund, Series I Canadian National Railway Co. 50,927 3,425,009 3,940,175 Royal Bank of Canada 64,315 4,450,914 4,768,957 Suncor Energy Inc. 76,483 2,619,739 2,731,973 The Bank of Nova Scotia 47,075 2,694,581 2,634,788 The Toronto-Dominion Bank 91,196 4,321,496 4,946,471 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

185 Sun MFS Canadian Equity Growth Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser A Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.50 Net asset value, end of period ($)(1) 9.97 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 475 Net assets(1) 498 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.92 Management expense ratio (%)(2) 3.92 Management expense ratio before waivers (%)(2) 4.13 Management expense ratio before waivers (%)(2) 4.13 Portfolio turnover rate (%)(3) 1.72 Portfolio turnover rate (%)(3) 1.72

Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser F Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.57 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 478 Net assets(1) 499 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.79 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 1.72 Portfolio turnover rate (%)(3) 1.72

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

186 Sun MFS Canadian Equity Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 631,438 Cash - Receivable for investment units sold 1,025 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 632,463 Liabilities Current liabilities Bank indebtedness 1,000 Redemptions payable 2 Payable for investment units purchased 8 Payable for fees & expenses 430 1,440 Net Assets Attributable to Holders of Redeemable Units 631,023

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 21,654 Net realized gain (loss) on sale of investments (1,711) Change in unrealized appreciation (depreciation) in value of investments (31,952) (12,009) Expenses (note 5) Management fees 4,572 Insurance fees 2,796 Administration fees 230 Total operating expenses 7,598 Management fees waived/absorbed by the Manager (273) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (19,334)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

187 Sun MFS Canadian Equity Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (19,334) Holder of Redeemable Unit Transactions Proceeds from Units Issued 731,499 Redemption of Units (81,142) 650,357 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 631,023 Net Assets Attributable to Holders of Redeemable Units at end of period 631,023

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (19,334) Adjustments for: Net realized gain (loss) on sale of investments 1,711 Change in unrealized appreciation (depreciation) in value of investments 31,952 Purchases of investments (751,298) Proceeds from sale of investments 85,180 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 430 Net Cash provided by (used in) Operating Activities (651,359) Cash Flows from (used in) Financing Activities Proceeds from units issued 731,499 Redemption of units (81,140) Net Cash provided by (used in) Financing Activities 650,359 Net increase (decrease) in cash (1,000) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (1,000) Distribution Income Received 21,654

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

188 Sun MFS Canadian Equity Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Canadian Equity Value Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund aims for long-term capital growth Sun Life MFS Canadian Equity Value primarily by investing in Canadian equity securities deemed to be undervalued Fund, Series I 31,647 663,390 631,438 relative to their industries or the overall market. The underlying fund may invest in global equity securities or other mutual funds. The underlying fund Total Investments 663,390 631,438 100.07 may invest up to 40% of the fund's assets in non-Canadian securities. Please Other Assets less Liabilities (415) (0.07) refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 631,023 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Agnico Eagle Mines Ltd. 6,884 233,759 250,371 Agrium Inc. 2,455 213,695 303,610 CAE Inc. 13,347 179,840 204,877 Canadian National Railway Co. 7,608 294,385 588,479 Canadian Natural Resources Ltd. 16,173 585,383 488,748 CCL Industries Inc., Class B 1,477 72,779 331,395 Element Financial Corp. 12,794 196,434 213,660 Fairfax Financial Holdings Ltd. 374 226,786 245,684 Intact Financial Corp. 2,023 126,234 179,400 Loblaw Companies Limited 4,495 229,706 293,703 Manulife Financial Corp. 23,173 408,691 480,608 Onex Corp. 2,409 174,932 204,331 Progressive Waste Solutions Ltd. 8,112 188,137 264,451 Inc., Class B 7,628 194,813 258,437 Rogers Communications Inc., Class B 3,771 201,648 179,952 Royal Bank of Canada 11,738 639,572 870,373 Stantec Inc. 6,227 196,960 213,711 Sun Life MFS International Value Fund, Series I 124,736 1,733,206 2,537,209 Sun Life MFS U.S. Value Fund, Series I 105,299 1,508,425 2,437,861 Suncor Energy Inc. 19,358 657,791 691,468 TELUS Corp. 6,732 226,869 257,566 The Bank of Nova Scotia 10,119 564,117 566,360 The Toronto-Dominion Bank 18,993 756,225 1,030,180 TransCanada Corporation 9,795 441,187 442,636 Valeant Pharmaceuticals International, Inc. 3,223 361,352 453,025

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

189 Sun MFS Canadian Equity Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Canadian Equity Value - Estate Series A Sun MFS Canadian Equity Value - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.35 Net asset value, end of period ($)(1) 9.88 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 49,215 Net assets(1) 494 Number of units outstanding(1) 5,263 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.14 Management expense ratio (%)(2) 3.14 Management expense ratio before waivers (%)(2) 3.22 Management expense ratio before waivers (%)(2) 3.22 Portfolio turnover rate (%)(3) 28.31 Portfolio turnover rate (%)(3) 28.31

Sun MFS Canadian Equity Value - Estate Series F Sun MFS Canadian Equity Value - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.43 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 472 Net assets(1) 494 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.02 Management expense ratio (%)(2) 0.97 Management expense ratio before waivers (%)(2) 2.10 Management expense ratio before waivers (%)(2) 0.97 Portfolio turnover rate (%)(3) 28.31 Portfolio turnover rate (%)(3) 28.31

Sun MFS Canadian Equity Value - Investment Series A Sun MFS Canadian Equity Value - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.40 Net asset value, end of period ($)(1) 9.89 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 167,961 Net assets(1) 494 Number of units outstanding(1) 17,874 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.70 Management expense ratio (%)(2) 2.70 Management expense ratio before waivers (%)(2) 2.77 Management expense ratio before waivers (%)(2) 2.77 Portfolio turnover rate (%)(3) 28.31 Portfolio turnover rate (%)(3) 28.31

Sun MFS Canadian Equity Value - Investment Series F Sun MFS Canadian Equity Value - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.46 Net asset value, end of period ($)(1) 9.92 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 473 Net assets(1) 495 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.57 Management expense ratio (%)(2) 0.52 Management expense ratio before waivers (%)(2) 1.64 Management expense ratio before waivers (%)(2) 0.52 Portfolio turnover rate (%)(3) 28.31 Portfolio turnover rate (%)(3) 28.31

Sun MFS Canadian Equity Value - Protect Series A Sun MFS Canadian Equity Value - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.30 Net asset value, end of period ($)(1) 9.87 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 409,469 Net assets(1) 493 Number of units outstanding(1) 44,041 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.97 Management expense ratio (%)(2) 3.97 Management expense ratio before waivers (%)(2) 4.13 Management expense ratio before waivers (%)(2) 4.13 Portfolio turnover rate (%)(3) 28.31 Portfolio turnover rate (%)(3) 28.31

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

190 Sun MFS Canadian Equity Value

Financial Highlights (Continued)

Sun MFS Canadian Equity Value - Protect Series F Sun MFS Canadian Equity Value - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.38 Net asset value, end of period ($)(1) 9.90 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 469 Net assets(1) 494 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.84 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 3.00 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 28.31 Portfolio turnover rate (%)(3) 28.31

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

191 Sun MFS Canadian Equity Value Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,950 Cash - Receivable for investment units sold 4 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 1,954 Liabilities Current liabilities Bank indebtedness 4 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 1 6 Net Assets Attributable to Holders of Redeemable Units 1,948

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 65 Net realized gain (loss) on sale of investments (1) Change in unrealized appreciation (depreciation) in value of investments (90) (26) Expenses (note 5) Management fees 13 Insurance fees 13 Administration fees 1 Total operating expenses 27 Management fees waived/absorbed by the Manager (2) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (51)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

192 Sun MFS Canadian Equity Value Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (51) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,000 Redemption of Units (1) 1,999 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,948 Net Assets Attributable to Holders of Redeemable Units at end of period 1,948

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (51) Adjustments for: Net realized gain (loss) on sale of investments 1 Change in unrealized appreciation (depreciation) in value of investments 90 Purchases of investments (2,065) Proceeds from sale of investments 20 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1 Net Cash provided by (used in) Operating Activities (2,004) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,000 Redemption of units - Net Cash provided by (used in) Financing Activities 2,000 Net increase (decrease) in cash (4) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (4) Distribution Income Received 65

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

193 Sun MFS Canadian Equity Value Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS Canadian Equity Value Canadian Equity Value Fund as its main investment. Please refer to note 8 in Fund, Series I 68 1,429 1,352 the accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 44 611 598

Total Investments 2,040 1,950 100.10 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities (2) (0.10) The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 1,948 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS Canadian Equity Value Fund, Series I Royal Bank of Canada 11,738 639,572 870,373 Sun Life MFS International Value Fund, Series I 124,736 1,733,206 2,537,209 Sun Life MFS U.S. Value Fund, Series I 105,299 1,508,425 2,437,861 Suncor Energy Inc. 19,358 657,791 691,468 The Toronto-Dominion Bank 18,993 756,225 1,030,180 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

194 Sun MFS Canadian Equity Value Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser A Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.50 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 475 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.82 Management expense ratio (%)(2) 3.82 Management expense ratio before waivers (%)(2) 4.13 Management expense ratio before waivers (%)(2) 4.12 Portfolio turnover rate (%)(3) 1.77 Portfolio turnover rate (%)(3) 1.77

Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser F Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.57 Net asset value, end of period ($)(1) 9.97 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 479 Net assets(1) 497 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.69 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 1.77 Portfolio turnover rate (%)(3) 1.77

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

195 Sun MFS Dividend Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 2,237,396 Cash 33,842 Receivable for investment units sold 18,287 Subscriptions receivable 10,087 Distribution receivable from underlying fund - Other receivable 44 2,299,656 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1,676 Payable for investment units purchased 52,127 Payable for fees & expenses 1,286 55,089 Net Assets Attributable to Holders of Redeemable Units 2,244,567

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 50,651 Net realized gain (loss) on sale of investments (2,467) Change in unrealized appreciation (depreciation) in value of investments (144,907) (96,723) Expenses (note 5) Management fees 13,577 Insurance fees 4,365 Administration fees 688 Total operating expenses 18,630 Management fees waived/absorbed by the Manager (137) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (115,216)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

196 Sun MFS Dividend Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (115,216) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,655,268 Redemption of Units (295,485) 2,359,783 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 2,244,567 Net Assets Attributable to Holders of Redeemable Units at end of period 2,244,567

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (115,216) Adjustments for: Net realized gain (loss) on sale of investments 2,467 Change in unrealized appreciation (depreciation) in value of investments 144,907 Purchases of investments (2,424,405) Proceeds from sale of investments 73,475 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (44) Increase (decrease) in fees & expenses payable 1,286 Net Cash provided by (used in) Operating Activities (2,317,530) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,645,181 Redemption of units (293,809) Net Cash provided by (used in) Financing Activities 2,351,372 Net increase (decrease) in cash 33,842 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 33,842 Distribution Income Received 50,651

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

197 Sun MFS Dividend Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Dividend Income Class (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund’s investment objective is to seek income Sun Life MFS Dividend Income generation and capital appreciation through exposure to primarily dividend or Class, Series I 257,943 2,382,303 2,237,396 income paying securities, including units, real-estate investment trust units and limited partnership units and other exchange-listed Total Investments 2,382,303 2,237,396 99.68 participating securities, by investing primarily in units of the Sun Life MFS Other Assets less Liabilities 7,171 0.32 Dividend Income Fund or its successor fund (the "underlying trust fund"). Please refer to note 8 in the accompanying notes to the financial statements Total Net Assets 2,244,567 100.00 for an explanation of the various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Trust Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). Agnico Eagle Mines Ltd. 8,564 329,307 311,473 38,562 340,301 393,718 BCE Inc. 6,816 315,837 364,383 BHP Billiton PLC 19,697 341,456 306,487 Canadian Tire Corp Ltd. 2,953 361,112 348,926 Dream Office Real Estate Investment Trust 29,989 678,917 520,909 Enbridge Inc. 18,032 810,680 829,472 Engie, ADR 16,619 420,746 406,304 Finning International Inc. 16,116 334,902 301,047 Loblaw Cos. Ltd. 4,315 249,407 281,942 Magna International Inc. 14,551 644,952 816,602 Marathon Petroleum Corp. 5,755 277,886 414,423 Open Text Corp. 5,816 335,349 385,833 Corp. 9,716 309,479 309,066 Progressive Waste Solutions Ltd. 9,912 270,312 323,131 Royal Bank of Canada 21,352 1,483,394 1,583,251 Suncor Energy Inc. 26,630 951,393 951,224 Telecom Italia SpA 27,354 284,796 391,374 TELUS Corp. 9,108 359,877 348,472 The Bank of Nova Scotia 16,821 1,048,196 941,471 The Toronto-Dominion Bank 29,261 1,421,088 1,587,117 TransCanada Corp. 6,566 312,775 296,718 Transcontinental Inc. 29,850 487,689 515,211 Valero Energy Corp. 3,710 313,092 364,409 AG 1,282 414,289 459,706

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

198 Sun MFS Dividend Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Dividend Income - Estate Series A Sun MFS Dividend Income - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.59 Net asset value, end of period ($)(1) 9.57 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,879,292 Net assets(1) 40,597 Number of units outstanding(1) 218,697 Number of units outstanding(1) 4,244 Management expense ratio (%)(2) 3.17 Management expense ratio (%)(2) 3.17 Management expense ratio before waivers (%)(2) 3.19 Management expense ratio before waivers (%)(2) 3.19 Portfolio turnover rate (%)(3) 9.89 Portfolio turnover rate (%)(3) 9.89

Sun MFS Dividend Income - Estate Series F Sun MFS Dividend Income - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.66 Net asset value, end of period ($)(1) 9.59 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 433 Net assets(1) 72,905 Number of units outstanding(1) 50 Number of units outstanding(1) 7,599 Management expense ratio (%)(2) 2.06 Management expense ratio (%)(2) 0.94 Management expense ratio before waivers (%)(2) 2.08 Management expense ratio before waivers (%)(2) 0.94 Portfolio turnover rate (%)(3) 9.89 Portfolio turnover rate (%)(3) 9.89

Sun MFS Dividend Income - Investment Series A Sun MFS Dividend Income - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.62 Net asset value, end of period ($)(1) 9.57 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 249,947 Net assets(1) 479 Number of units outstanding(1) 29,006 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.73 Management expense ratio (%)(2) 2.73 Management expense ratio before waivers (%)(2) 2.75 Management expense ratio before waivers (%)(2) 2.75 Portfolio turnover rate (%)(3) 9.89 Portfolio turnover rate (%)(3) 9.89

Sun MFS Dividend Income - Investment Series F Sun MFS Dividend Income - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.69 Net asset value, end of period ($)(1) 9.60 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 434 Net assets(1) 480 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.60 Management expense ratio (%)(2) 0.50 Management expense ratio before waivers (%)(2) 1.62 Management expense ratio before waivers (%)(2) 0.50 Portfolio turnover rate (%)(3) 9.89 Portfolio turnover rate (%)(3) 9.89

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

199 Sun MFS Global Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 2,193,857 Cash - Receivable for investment units sold 4,248 Subscriptions receivable 1,090 Distribution receivable from underlying fund - Other receivable - 2,199,195 Liabilities Current liabilities Bank indebtedness 4,048 Redemptions payable 251 Payable for investment units purchased 200 Payable for fees & expenses 1,258 5,757 Net Assets Attributable to Holders of Redeemable Units 2,193,438

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 79,990 Net realized gain (loss) on sale of investments (132) Change in unrealized appreciation (depreciation) in value of investments (20,202) 59,656 Expenses (note 5) Management fees 10,328 Insurance fees 2,814 Administration fees 1,116 Total operating expenses 14,258 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 45,398

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

200 Sun MFS Global Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 45,398 Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,285,759 Redemption of Units (137,719) 2,148,040 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 2,193,438 Net Assets Attributable to Holders of Redeemable Units at end of period 2,193,438

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 45,398 Adjustments for: Net realized gain (loss) on sale of investments 132 Change in unrealized appreciation (depreciation) in value of investments 20,202 Purchases of investments (2,223,935) Proceeds from sale of investments 5,696 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1,258 Net Cash provided by (used in) Operating Activities (2,151,249) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,284,669 Redemption of units (137,468) Net Cash provided by (used in) Financing Activities 2,147,201 Net increase (decrease) in cash (4,048) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (4,048) Distribution Income Received 79,990

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

201 Sun MFS Global Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Global Growth Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund's investment objective is to seek capital Sun Life MFS Global Growth appreciation by investing primarily in equity securities of issuers located Fund, Series I 127,993 2,214,059 2,193,857 anywhere in the world that are considered to have above-average earnings growth potential compared to other issuers. Please refer to note 8 in the Total Investments 2,214,059 2,193,857 100.02 accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities (419) (0.02) various risks. Total Net Assets 2,193,438 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Abbott Laboratories 15,030 748,067 937,640 Accenture PLC 13,952 1,261,947 2,025,287 Alphabet Inc., Class A 2,084 1,438,218 2,252,251 AutoZone Inc. 1,009 681,128 1,039,863 Cognizant Technology Solutions Corp. 11,511 619,329 959,716 Colgate-Palmolive Co. 12,147 823,702 1,124,107 Compass Group PLC 48,785 792,919 1,173,605 CVS Caremark Corp. 7,966 649,185 1,081,882 Danone SA 14,770 1,106,422 1,388,072 Ecolab Inc. 6,890 972,712 1,094,720 Fidelity National Information Services Inc. 11,115 847,642 935,655 HDFC Bank Ltd. 10,522 518,343 900,353 Intertek Group PLC 17,379 850,788 988,094 LVMH Moet Hennessy Louis Vuitton SA 6,078 1,087,890 1,328,961 Mead Johnson Nutrition Co. 10,591 1,066,775 1,161,510 Monsanto Co. 7,097 883,404 971,255 Nestle SA 13,286 1,081,522 1,374,490 Pernod Ricard SA 6,774 847,800 1,075,335 Roche Holding AG 2,981 1,055,845 1,143,404 Taiwan Semiconductor Manufacturing Co., Ltd., ADR 43,834 966,065 1,385,244 Texas Instruments Inc. 11,937 836,547 908,843 Thermo Fisher Scientific Inc. 7,480 962,512 1,473,888 Twenty-First Century Fox Inc. 25,287 999,525 954,028 Visa Inc., Class A 12,662 729,963 1,364,011 WW Grainger Inc. 3,671 980,375 1,033,085

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

202 Sun MFS Global Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Global Growth - Estate Series A Sun MFS Global Growth - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.49 Net asset value, end of period ($)(1) 10.16 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 415,376 Net assets(1) 135,865 Number of units outstanding(1) 39,587 Number of units outstanding(1) 13,372 Management expense ratio (%)(2) 3.57 Management expense ratio (%)(2) 3.57 Management expense ratio before waivers (%)(2) 3.57 Management expense ratio before waivers (%)(2) 3.57 Portfolio turnover rate (%)(3) 0.76 Portfolio turnover rate (%)(3) 0.76

Sun MFS Global Growth - Estate Series F Sun MFS Global Growth - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.58 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 529 Net assets(1) 508 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.44 Management expense ratio (%)(2) 1.31 Management expense ratio before waivers (%)(2) 2.44 Management expense ratio before waivers (%)(2) 1.31 Portfolio turnover rate (%)(3) 0.76 Portfolio turnover rate (%)(3) 0.76

Sun MFS Global Growth - Investment Series A Sun MFS Global Growth - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.55 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,601,546 Net assets(1) 38,574 Number of units outstanding(1) 151,826 Number of units outstanding(1) 3,793 Management expense ratio (%)(2) 2.85 Management expense ratio (%)(2) 2.85 Management expense ratio before waivers (%)(2) 2.85 Management expense ratio before waivers (%)(2) 2.85 Portfolio turnover rate (%)(3) 0.76 Portfolio turnover rate (%)(3) 0.76

Sun MFS Global Growth - Investment Series F Sun MFS Global Growth - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.62 Net asset value, end of period ($)(1) 10.20 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 531 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.78 Management expense ratio (%)(2) 0.64 Management expense ratio before waivers (%)(2) 1.78 Management expense ratio before waivers (%)(2) 0.64 Portfolio turnover rate (%)(3) 0.76 Portfolio turnover rate (%)(3) 0.76

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

203 Sun MFS Global Total Return

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 18,074,889 Cash 302,000 Receivable for investment units sold - Subscriptions receivable 479,191 Distribution receivable from underlying fund - Other receivable 919 18,856,999 Liabilities Current liabilities Bank indebtedness - Redemptions payable 628 Payable for investment units purchased 515,878 Payable for fees & expenses 10,379 526,885 Net Assets Attributable to Holders of Redeemable Units 18,330,114

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 269,771 Net realized gain (loss) on sale of investments 1,134 Change in unrealized appreciation (depreciation) in value of investments 197,917 468,822 Expenses (note 5) Management fees 84,750 Insurance fees 32,246 Administration fees 4,269 Total operating expenses 121,265 Management fees waived/absorbed by the Manager (4,456) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 352,013

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

204 Sun MFS Global Total Return

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 352,013 Holder of Redeemable Unit Transactions Proceeds from Units Issued 19,911,514 Redemption of Units (1,933,413) 17,978,101 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 18,330,114 Net Assets Attributable to Holders of Redeemable Units at end of period 18,330,114

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 352,013 Adjustments for: Net realized gain (loss) on sale of investments (1,134) Change in unrealized appreciation (depreciation) in value of investments (197,917) Purchases of investments (17,421,157) Proceeds from sale of investments 61,197 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (919) Increase (decrease) in fees & expenses payable 10,379 Net Cash provided by (used in) Operating Activities (17,197,538) Cash Flows from (used in) Financing Activities Proceeds from units issued 19,432,323 Redemption of units (1,932,785) Net Cash provided by (used in) Financing Activities 17,499,538 Net increase (decrease) in cash 302,000 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 302,000 Distribution Income Received 269,771

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

205 Sun MFS Global Total Return

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Global Total Return Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund's investment objective is to seek total return by Sun Life MFS Global Total Return investing primarily in a mix of equity securities and debt instruments of issuers Fund, Series I 1,079,452 17,876,972 18,074,889 located anywhere in the world. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Total Investments 17,876,972 18,074,889 98.61

Other Assets less Liabilities 255,225 1.39 Financial Instrument Risk of the Underlying Fund(s)

Total Net Assets 18,330,114 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Top 25 Holdings of Underlying Fund detailed risk analyses of the underlying fund(s) are disclosed in the financial As at December 31, 2015 statements of the underlying fund(s).

Number of Average Fair Investment Shares Cost ($) Value ($) 3M Co. 11,187 1,969,167 2,340,927 Accenture PLC 15,045 1,576,890 2,183,948 Cash 22,717,934 CVS Caremark Corp. 15,296 1,578,158 2,077,387 Danone SA 21,469 1,750,472 2,017,639 Exxon Mobil Corp. 18,555 1,924,619 2,009,143 General Mills Inc. 27,338 1,782,299 2,189,653 Italy Buoni Poliennali Del Tesoro 3.75%, Mar 1, 2021 1,197,000 1,892,584 2,086,848 Government Ten Year Bond 0.70%, Dec 20, 2022 180,000,000 2,048,544 2,170,798 Japan Government Twenty Year Bond 2.20%, Sep 20, 2027 179,950,000 2,215,242 2,511,792 Japan Government Twenty Year Bond 1.50%, Mar 20, 2034 155,000,000 1,652,405 1,984,037 Johnson & Johnson 20,004 2,304,892 2,854,340 JPMorgan Chase & Co. 24,730 1,748,085 2,268,294 KDDI Corp. 81,200 2,049,428 2,957,359 Nestle SA 27,988 2,497,873 2,895,471 Novartis AG 31,251 3,592,555 3,764,292 Philip Morris International Inc. 26,361 2,610,146 3,219,097 Roche Holding AG 4,919 1,604,072 1,886,751 Taiwan Semiconductor Manufacturing Co., Ltd., ADR 68,504 1,813,679 2,164,867 United States Treasury Bond 1.13%, Jun 15, 2018 3,690,000 4,914,005 5,114,481 United States Treasury Bond 3.50%, May 15, 2020 1,942,000 2,692,274 2,904,219 United States Treasury Bond 1.75%, May 15, 2022 1,388,000 1,876,683 1,896,924 United States Treasury Bond 4.50%, Aug 15, 2039 1,356,000 2,161,777 2,411,449 Verizon Communications Inc. 38,619 2,198,592 2,479,504 Wells Fargo & Co. 30,571 1,841,040 2,308,463

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

206 Sun MFS Global Total Return

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Global Total Return - Estate Series A Sun MFS Global Total Return - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.42 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 8,549,088 Net assets(1) 1,117,450 Number of units outstanding(1) 820,238 Number of units outstanding(1) 109,710 Management expense ratio (%)(2) 2.99 Management expense ratio (%)(2) 2.99 Management expense ratio before waivers (%)(2) 3.11 Management expense ratio before waivers (%)(2) 3.11 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

Sun MFS Global Total Return - Estate Series F Sun MFS Global Total Return - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.49 Net asset value, end of period ($)(1) 10.21 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 524 Net assets(1) 351,407 Number of units outstanding(1) 50 Number of units outstanding(1) 34,405 Management expense ratio (%)(2) 1.91 Management expense ratio (%)(2) 0.91 Management expense ratio before waivers (%)(2) 2.03 Management expense ratio before waivers (%)(2) 0.91 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

Sun MFS Global Total Return - Investment Series A Sun MFS Global Total Return - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.44 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 2,869,905 Net assets(1) 272,368 Number of units outstanding(1) 274,946 Number of units outstanding(1) 26,718 Management expense ratio (%)(2) 2.58 Management expense ratio (%)(2) 2.58 Management expense ratio before waivers (%)(2) 2.69 Management expense ratio before waivers (%)(2) 2.69 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

Sun MFS Global Total Return - Investment Series F Sun MFS Global Total Return - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.52 Net asset value, end of period ($)(1) 10.22 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 526 Net assets(1) 39,481 Number of units outstanding(1) 50 Number of units outstanding(1) 3,863 Management expense ratio (%)(2) 1.47 Management expense ratio (%)(2) 0.46 Management expense ratio before waivers (%)(2) 1.58 Management expense ratio before waivers (%)(2) 0.46 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

Sun MFS Global Total Return - Lifetime Advantage Series A Sun MFS Global Total Return - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.33 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 3,201,751 Net assets(1) 30,411 Number of units outstanding(1) 309,998 Number of units outstanding(1) 2,989 Management expense ratio (%)(2) 4.02 Management expense ratio (%)(2) 4.02 Management expense ratio before waivers (%)(2) 4.12 Management expense ratio before waivers (%)(2) 4.12 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

207 Sun MFS Global Total Return

Financial Highlights (Continued)

Sun MFS Global Total Return - Lifetime Advantage Series F Sun MFS Global Total Return - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.42 Net asset value, end of period ($)(1) 10.20 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 521 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.90 Management expense ratio (%)(2) 1.87 Management expense ratio before waivers (%)(2) 3.00 Management expense ratio before waivers (%)(2) 1.87 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

Sun MFS Global Total Return - Protect Series A Sun MFS Global Total Return - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.35 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,820,428 Net assets(1) 509 Number of units outstanding(1) 175,873 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.73 Management expense ratio (%)(2) 3.71 Management expense ratio before waivers (%)(2) 3.85 Management expense ratio before waivers (%)(2) 3.84 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

Sun MFS Global Total Return - Protect Series F Sun MFS Global Total Return - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.44 Net asset value, end of period ($)(1) 10.20 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 522 Net assets(1) 74,714 Number of units outstanding(1) 50 Number of units outstanding(1) 7,321 Management expense ratio (%)(2) 2.60 Management expense ratio (%)(2) 1.59 Management expense ratio before waivers (%)(2) 2.73 Management expense ratio before waivers (%)(2) 1.59 Portfolio turnover rate (%)(3) 1.00 Portfolio turnover rate (%)(3) 1.00

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

208 Sun MFS Global Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 4,575,565 Cash 48,766 Receivable for investment units sold 8,157 Subscriptions receivable 11,088 Distribution receivable from underlying fund - Other receivable 751 4,644,327 Liabilities Current liabilities Bank indebtedness - Redemptions payable 231 Payable for investment units purchased 56,923 Payable for fees & expenses 2,710 59,864 Net Assets Attributable to Holders of Redeemable Units 4,584,463

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 51,335 Net realized gain (loss) on sale of investments 240 Change in unrealized appreciation (depreciation) in value of investments 171,514 223,089 Expenses (note 5) Management fees 24,630 Insurance fees 9,903 Administration fees 2,135 Total operating expenses 36,668 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 186,421

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

209 Sun MFS Global Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 186,421 Holder of Redeemable Unit Transactions Proceeds from Units Issued 5,137,887 Redemption of Units (739,845) 4,398,042 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 4,584,463 Net Assets Attributable to Holders of Redeemable Units at end of period 4,584,463

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 186,421 Adjustments for: Net realized gain (loss) on sale of investments (240) Change in unrealized appreciation (depreciation) in value of investments (171,514) Purchases of investments (4,380,410) Proceeds from sale of investments 25,365 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (751) Increase (decrease) in fees & expenses payable 2,710 Net Cash provided by (used in) Operating Activities (4,338,419) Cash Flows from (used in) Financing Activities Proceeds from units issued 5,126,799 Redemption of units (739,614) Net Cash provided by (used in) Financing Activities 4,387,185 Net increase (decrease) in cash 48,766 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 48,766 Distribution Income Received 51,335

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

210 Sun MFS Global Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Global Value Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund's investment objective is to seek capital appreciation by Sun Life MFS Global Value Fund, Series I 204,109 4,404,051 4,575,565 investing primarily in equity securities of issuers located anywhere in the world that are considered to be undervalued compared to their perceived worth. Total Investments 4,404,051 4,575,565 99.81 Please refer to note 8 in the accompanying notes to the financial statements Other Assets less Liabilities 8,898 0.19 for an explanation of the various risks. Total Net Assets 4,584,463 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) 3M Co. 18,094 3,134,242 3,786,245 Accenture PLC 23,965 2,470,028 3,478,785 Cash 4,018,854 CVS Caremark Corp. 24,860 2,480,556 3,376,297 Danone SA 33,706 2,736,535 3,167,662 GlaxoSmithKline PLC 92,065 2,547,666 2,587,991 Heineken NV 23,551 2,064,786 2,799,324 Henkel AG & Co., KGaA 16,750 2,130,331 2,608,420 Honeywell International Inc. 19,777 2,211,757 2,845,301 Japan Tobacco Inc. 46,100 1,810,530 2,380,082 Johnson & Johnson 30,059 3,382,289 4,289,073 JPMorgan Chase & Co. 40,602 2,818,306 3,724,111 Kao Corp. 40,400 1,857,063 2,918,065 KDDI Corp. 131,700 3,267,544 4,796,603 Lockheed Martin Corp. 8,943 1,679,693 2,697,596 Nestle SA 40,155 3,551,007 4,154,196 Pernod Ricard SA 14,953 2,059,052 2,373,707 Pfizer Inc. 67,631 2,506,157 3,032,586 Philip Morris International Inc. 28,246 2,776,689 3,449,285 PPG Industries Inc. 18,137 2,229,598 2,489,684 Telefonaktiebolaget LM Ericsson, Class B 177,739 2,437,651 2,410,229 Texas Instruments Inc. 38,156 2,373,160 2,905,069 The Travelers Cos Inc. 17,968 2,073,716 2,816,914 Verizon Communications Inc. 44,201 2,509,085 2,837,892 Wells Fargo & Co. 50,411 2,958,987 3,806,612

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

211 Sun MFS Global Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Global Value - Estate Series A Sun MFS Global Value - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.98 Net asset value, end of period ($)(1) 10.34 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,798,159 Net assets(1) 356,965 Number of units outstanding(1) 163,787 Number of units outstanding(1) 34,535 Management expense ratio (%)(2) 3.35 Management expense ratio (%)(2) 3.35 Management expense ratio before waivers (%)(2) 3.35 Management expense ratio before waivers (%)(2) 3.35 Portfolio turnover rate (%)(3) 1.44 Portfolio turnover rate (%)(3) 1.44

Sun MFS Global Value - Estate Series F Sun MFS Global Value - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.06 Net asset value, end of period ($)(1) 10.36 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 664,549 Net assets(1) 517 Number of units outstanding(1) 60,061 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.23 Management expense ratio (%)(2) 1.10 Management expense ratio before waivers (%)(2) 2.23 Management expense ratio before waivers (%)(2) 1.10 Portfolio turnover rate (%)(3) 1.44 Portfolio turnover rate (%)(3) 1.44

Sun MFS Global Value - Investment Series A Sun MFS Global Value - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.05 Net asset value, end of period ($)(1) 10.34 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 981,523 Net assets(1) 41,459 Number of units outstanding(1) 88,861 Number of units outstanding(1) 4,009 Management expense ratio (%)(2) 2.79 Management expense ratio (%)(2) 2.79 Management expense ratio before waivers (%)(2) 2.79 Management expense ratio before waivers (%)(2) 2.79 Portfolio turnover rate (%)(3) 1.44 Portfolio turnover rate (%)(3) 1.44

Sun MFS Global Value - Investment Series F Sun MFS Global Value - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.11 Net asset value, end of period ($)(1) 10.37 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 555 Net assets(1) 517 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.72 Management expense ratio (%)(2) 0.60 Management expense ratio before waivers (%)(2) 1.72 Management expense ratio before waivers (%)(2) 0.60 Portfolio turnover rate (%)(3) 1.44 Portfolio turnover rate (%)(3) 1.44

Sun MFS Global Value - Protect Series A Sun MFS Global Value - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.91 Net asset value, end of period ($)(1) 10.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 638,544 Net assets(1) 516 Number of units outstanding(1) 58,551 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.34 Management expense ratio (%)(2) 4.32 Management expense ratio before waivers (%)(2) 4.34 Management expense ratio before waivers (%)(2) 4.32 Portfolio turnover rate (%)(3) 1.44 Portfolio turnover rate (%)(3) 1.44

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

212 Sun MFS Global Value

Financial Highlights (Continued)

Sun MFS Global Value - Protect Series F Sun MFS Global Value - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.00 Net asset value, end of period ($)(1) 10.35 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 550 Net assets(1) 100,609 Number of units outstanding(1) 50 Number of units outstanding(1) 9,720 Management expense ratio (%)(2) 3.21 Management expense ratio (%)(2) 2.07 Management expense ratio before waivers (%)(2) 3.21 Management expense ratio before waivers (%)(2) 2.07 Portfolio turnover rate (%)(3) 1.44 Portfolio turnover rate (%)(3) 1.44

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

213 Sun MFS Global Value Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 362,445 Cash 47,856 Receivable for investment units sold - Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 410,301 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 47,856 Payable for fees & expenses 220 48,077 Net Assets Attributable to Holders of Redeemable Units 362,224

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 4,645 Net realized gain (loss) on sale of investments 18 Change in unrealized appreciation (depreciation) in value of investments 6,588 11,251 Expenses (note 5) Management fees 1,444 Insurance fees 1,087 Administration fees 72 Total operating expenses 2,603 Management fees waived/absorbed by the Manager (116) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 8,764

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

214 Sun MFS Global Value Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 8,764 Holder of Redeemable Unit Transactions Proceeds from Units Issued 353,461 Redemption of Units (1) 353,460 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 362,224 Net Assets Attributable to Holders of Redeemable Units at end of period 362,224

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 8,764 Adjustments for: Net realized gain (loss) on sale of investments (18) Change in unrealized appreciation (depreciation) in value of investments (6,588) Purchases of investments (309,678) Proceeds from sale of investments 1,695 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 220 Net Cash provided by (used in) Operating Activities (305,605) Cash Flows from (used in) Financing Activities Proceeds from units issued 353,461 Redemption of units - Net Cash provided by (used in) Financing Activities 353,461 Net increase (decrease) in cash 47,856 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 47,856 Distribution Income Received 4,645

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

215 Sun MFS Global Value Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS Global Value Fund, Series I 11,453 248,261 256,734 Global Value Fund as its main investment. Please refer to note 8 in the Sun Life MFS Canadian Bond accompanying notes to the financial statements for an explanation of the Fund, Series I 7,792 107,596 105,711 various risks.

Total Investments 355,857 362,445 100.06 Financial Instrument Risk of the Underlying Fund(s) Other Assets less Liabilities (221) (0.06) The Fund is indirectly exposed to currency risk, interest rate risk, other market Total Net Assets 362,224 100.00 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Top 5 Holdings of each of the Underlying Funds statements of the underlying fund(s). As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS Global Value Fund, Series I Cash 4,018,854 Johnson & Johnson 30,059 3,382,289 4,289,073 KDDI Corp. 131,700 3,267,544 4,796,603 Nestle SA 40,155 3,551,007 4,154,196 Wells Fargo & Co. 50,411 2,958,987 3,806,612 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

216 Sun MFS Global Value Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Global Value Bundle - Lifetime Advantage Series A Sun MFS Global Value Bundle - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.46 Net asset value, end of period ($)(1) 10.27 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 360,670 Net assets(1) 513 Number of units outstanding(1) 34,482 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.68 Management expense ratio (%)(2) 3.68 Management expense ratio before waivers (%)(2) 3.85 Management expense ratio before waivers (%)(2) 3.85 Portfolio turnover rate (%)(3) 1.42 Portfolio turnover rate (%)(3) 1.42

Sun MFS Global Value Bundle - Lifetime Advantage Series F Sun MFS Global Value Bundle - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.54 Net asset value, end of period ($)(1) 10.29 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 527 Net assets(1) 514 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.82 Management expense ratio (%)(2) 1.87 Management expense ratio before waivers (%)(2) 3.00 Management expense ratio before waivers (%)(2) 1.87 Portfolio turnover rate (%)(3) 1.42 Portfolio turnover rate (%)(3) 1.42

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

217 Sun MFS International Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 280,529 Cash 2,529 Receivable for investment units sold 587 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 283,645 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 3,103 Payable for fees & expenses 157 3,261 Net Assets Attributable to Holders of Redeemable Units 280,384

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 4,654 Net realized gain (loss) on sale of investments 33 Change in unrealized appreciation (depreciation) in value of investments 11,260 15,947 Expenses (note 5) Management fees 1,231 Insurance fees 216 Administration fees 137 Total operating expenses 1,584 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 14,363

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

218 Sun MFS International Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 14,363 Holder of Redeemable Unit Transactions Proceeds from Units Issued 266,023 Redemption of Units (2) 266,021 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 280,384 Net Assets Attributable to Holders of Redeemable Units at end of period 280,384

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 14,363 Adjustments for: Net realized gain (loss) on sale of investments (33) Change in unrealized appreciation (depreciation) in value of investments (11,260) Purchases of investments (267,118) Proceeds from sale of investments 398 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 157 Net Cash provided by (used in) Operating Activities (263,493) Cash Flows from (used in) Financing Activities Proceeds from units issued 266,023 Redemption of units (1) Net Cash provided by (used in) Financing Activities 266,022 Net increase (decrease) in cash 2,529 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 2,529 Distribution Income Received 4,654

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

219 Sun MFS International Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS International Growth Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund's investment objective is to seek Sun Life MFS International Growth capital appreciation by investing primarily in equity securities of issuers outside Fund, Series I 18,084 269,269 280,529 of Canada and the U.S. that are considered to have above-average earnings growth potential compared to other issuers. Please refer to note 8 in the Total Investments 269,269 280,529 100.05 accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities (145) (0.05) various risks. Total Net Assets 280,384 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Accenture PLC 57,550 6,304,129 8,354,019 AIA Group Ltd. 845,200 5,738,508 7,059,416 Bayer AG 33,211 5,264,440 5,803,280 Brenntag AG 46,834 3,112,283 3,412,020 Compass Group PLC 284,988 5,558,176 6,855,863 Danone SA 92,335 7,573,231 8,677,567 Diageo PLC 119,031 4,114,580 4,524,314 Fresenius Medical Care AG & Co., KGaA 30,286 2,807,622 3,552,333 HDFC Bank Ltd. 54,682 3,503,952 4,679,064 HSBC Holdings PLC 378,249 4,212,626 4,152,429 Linde AG 20,415 4,486,880 4,124,896 L'Oreal SA 18,926 4,011,234 4,435,201 LVMH Moet Hennessy Louis Vuitton SA 28,831 5,816,615 6,303,926 Mettler-Toledo International Inc. 10,448 3,557,237 4,921,905 Nestle SA 98,258 8,759,969 10,165,185 Novartis AG 65,129 8,213,153 7,845,016 Paddy Power PLC 18,183 2,124,836 3,380,028 Pernod Ricard SA 42,020 5,773,215 6,670,445 Reckitt Benckiser Group PLC 42,584 4,377,863 5,476,119 Roche Holding AG 28,071 9,502,622 10,767,023 Schneider Electric SA 47,131 4,053,774 3,738,049 Taiwan Semiconductor Manufacturing Co., Ltd., ADR 229,887 5,757,897 7,264,901 UBS Group AG 268,228 6,328,965 7,265,803 Whitbread PLC 41,032 3,474,018 3,697,190 WPP Plc 177,863 4,710,385 5,691,703

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

220 Sun MFS International Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS International Growth - Estate Series A Sun MFS International Growth - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.27 Net asset value, end of period ($)(1) 10.30 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 55,458 Net assets(1) 515 Number of units outstanding(1) 5,400 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.42 Management expense ratio (%)(2) 3.41 Management expense ratio before waivers (%)(2) 3.42 Management expense ratio before waivers (%)(2) 3.41 Portfolio turnover rate (%)(3) 0.45 Portfolio turnover rate (%)(3) 0.45

Sun MFS International Growth - Estate Series F Sun MFS International Growth - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.36 Net asset value, end of period ($)(1) 10.33 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 518 Net assets(1) 516 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.28 Management expense ratio (%)(2) 1.16 Management expense ratio before waivers (%)(2) 2.28 Management expense ratio before waivers (%)(2) 1.16 Portfolio turnover rate (%)(3) 0.45 Portfolio turnover rate (%)(3) 0.45

Sun MFS International Growth - Investment Series A Sun MFS International Growth - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.31 Net asset value, end of period ($)(1) 10.31 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 221,825 Net assets(1) 515 Number of units outstanding(1) 21,513 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.91 Management expense ratio (%)(2) 2.90 Management expense ratio before waivers (%)(2) 2.91 Management expense ratio before waivers (%)(2) 2.90 Portfolio turnover rate (%)(3) 0.45 Portfolio turnover rate (%)(3) 0.45

Sun MFS International Growth - Investment Series F Sun MFS International Growth - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.40 Net asset value, end of period ($)(1) 10.34 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 520 Net assets(1) 517 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.78 Management expense ratio (%)(2) 0.65 Management expense ratio before waivers (%)(2) 1.78 Management expense ratio before waivers (%)(2) 0.65 Portfolio turnover rate (%)(3) 0.45 Portfolio turnover rate (%)(3) 0.45

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

221 Sun MFS International Growth Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 77,192 Cash - Receivable for investment units sold 98 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 77,290 Liabilities Current liabilities Bank indebtedness 98 Redemptions payable 41 Payable for investment units purchased - Payable for fees & expenses 47 186 Net Assets Attributable to Holders of Redeemable Units 77,104

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,426 Net realized gain (loss) on sale of investments (1) Change in unrealized appreciation (depreciation) in value of investments 705 2,130 Expenses (note 5) Management fees 421 Insurance fees 349 Administration fees 23 Total operating expenses 793 Management fees waived/absorbed by the Manager (19) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 1,356

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

222 Sun MFS International Growth Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 1,356 Holder of Redeemable Unit Transactions Proceeds from Units Issued 75,789 Redemption of Units (41) 75,748 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 77,104 Net Assets Attributable to Holders of Redeemable Units at end of period 77,104

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 1,356 Adjustments for: Net realized gain (loss) on sale of investments 1 Change in unrealized appreciation (depreciation) in value of investments (705) Purchases of investments (77,216) Proceeds from sale of investments 630 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 47 Net Cash provided by (used in) Operating Activities (75,887) Cash Flows from (used in) Financing Activities Proceeds from units issued 75,789 Redemption of units - Net Cash provided by (used in) Financing Activities 75,789 Net increase (decrease) in cash (98) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (98) Distribution Income Received 1,426

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

223 Sun MFS International Growth Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS International Growth International Growth Fund as its main investment. Please refer to note 8 in the Fund, Series I 3,524 53,406 54,672 accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 1,660 23,081 22,520

Total Investments 76,487 77,192 100.11 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities (88) (0.11) The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 77,104 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS International Growth Fund, Series I Accenture PLC 57,550 6,304,129 8,354,019 Danone SA 92,335 7,573,231 8,677,567 Nestle SA 98,258 8,759,969 10,165,185 Novartis AG 65,129 8,213,153 7,845,016 Roche Holding AG 28,071 9,502,622 10,767,023 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

224 Sun MFS International Growth Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS International Grow Bundle - Lifetime Advantage Ser A Sun MFS International Grow Bundle - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.13 Net asset value, end of period ($)(1) 10.24 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 46,527 Net assets(1) 512 Number of units outstanding(1) 4,595 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.09 Management expense ratio (%)(2) 4.03 Management expense ratio before waivers (%)(2) 4.19 Management expense ratio before waivers (%)(2) 4.13 Portfolio turnover rate (%)(3) 2.08 Portfolio turnover rate (%)(3) 2.08

Sun MFS International Grow Bundle - Lifetime Advantage Ser F Sun MFS International Grow Bundle - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.21 Net asset value, end of period ($)(1) 10.27 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 511 Net assets(1) 29,554 Number of units outstanding(1) 50 Number of units outstanding(1) 2,879 Management expense ratio (%)(2) 2.89 Management expense ratio (%)(2) 1.87 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 1.87 Portfolio turnover rate (%)(3) 2.08 Portfolio turnover rate (%)(3) 2.08

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

225 Sun MFS International Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 971,170 Cash 12,475 Receivable for investment units sold 841 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 795 985,281 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 13,314 Payable for fees & expenses 556 13,871 Net Assets Attributable to Holders of Redeemable Units 971,410

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 37,871 Net realized gain (loss) on sale of investments 1,443 Change in unrealized appreciation (depreciation) in value of investments 19,147 58,461 Expenses (note 5) Management fees 4,391 Insurance fees 1,027 Administration fees 374 Total operating expenses 5,792 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 52,669

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

226 Sun MFS International Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 52,669 Holder of Redeemable Unit Transactions Proceeds from Units Issued 972,721 Redemption of Units (53,980) 918,741 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 971,410 Net Assets Attributable to Holders of Redeemable Units at end of period 971,410

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 52,669 Adjustments for: Net realized gain (loss) on sale of investments (1,443) Change in unrealized appreciation (depreciation) in value of investments (19,147) Purchases of investments (993,222) Proceeds from sale of investments 55,115 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (795) Increase (decrease) in fees & expenses payable 556 Net Cash provided by (used in) Operating Activities (906,267) Cash Flows from (used in) Financing Activities Proceeds from units issued 972,721 Redemption of units (53,979) Net Cash provided by (used in) Financing Activities 918,742 Net increase (decrease) in cash 12,475 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 12,475 Distribution Income Received 37,871

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

227 Sun MFS International Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS International Value Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund's investment objective is to seek capital Sun Life MFS International Value appreciation by investing primarily in equity securities of issuers located Fund, Series I 47,745 952,023 971,170 outside of Canada and the U.S. that are considered to be undervalued compared to their perceived worth. Please refer to note 8 in the Total Investments 952,023 971,170 99.98 accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities 240 0.02 various risks. Total Net Assets 971,410 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Amadeus IT Holding SA 235,741 10,099,884 14,472,797 Analog Devices Inc. 161,266 10,481,843 12,392,498 Bayer AG 74,364 10,716,000 12,994,343 Brambles Ltd. 2,122,605 20,444,808 24,819,893 British American Tobacco PLC 192,068 12,205,122 14,828,910 Bunzl PLC 301,147 7,668,018 11,622,179 Cash 25,522,164 Colgate-Palmolive Co. 216,656 17,479,803 20,049,761 Compass Group PLC 678,238 11,090,141 16,316,149 Danone SA 343,873 27,339,786 32,316,901 Deutsche Annington Immobilien SE 288,003 10,210,180 12,407,553 Givaudan SA 5,834 11,125,810 14,758,860 Heineken NV 131,203 10,916,486 15,595,081 Henkel AG & Co., KGaA 128,642 15,270,908 20,032,978 Japan Tobacco Inc. 360,800 13,616,812 18,627,624 Kao Corp. 292,900 12,948,268 21,155,971 KDDI Corp. 692,618 15,526,323 25,225,613 Nestle SA 368,747 31,996,823 38,148,359 Nomura Research Institute Ltd. 295,480 10,219,957 15,934,236 Pernod Ricard SA 107,504 14,665,977 17,065,672 Reckitt Benckiser Group PLC 231,530 21,721,285 29,773,763 Roche Holding AG 32,678 9,887,252 12,534,103 Taiwan Semiconductor Manufacturing Co., Ltd., ADR 466,449 10,959,786 14,740,745 Telefonaktiebolaget LM Ericsson, Class B 1,180,083 15,673,780 16,002,510 Yamato Holdings Co., Ltd. 491,800 10,945,445 14,629,203

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

228 Sun MFS International Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS International Value - Estate Series A Sun MFS International Value - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.95 Net asset value, end of period ($)(1) 10.54 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 450,892 Net assets(1) 527 Number of units outstanding(1) 41,168 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.33 Management expense ratio (%)(2) 3.33 Management expense ratio before waivers (%)(2) 3.33 Management expense ratio before waivers (%)(2) 3.33 Portfolio turnover rate (%)(3) 17.20 Portfolio turnover rate (%)(3) 17.20

Sun MFS International Value - Estate Series F Sun MFS International Value - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.04 Net asset value, end of period ($)(1) 10.57 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 552 Net assets(1) 527 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.20 Management expense ratio (%)(2) 1.08 Management expense ratio before waivers (%)(2) 2.20 Management expense ratio before waivers (%)(2) 1.08 Portfolio turnover rate (%)(3) 17.20 Portfolio turnover rate (%)(3) 17.20

Sun MFS International Value - Investment Series A Sun MFS International Value - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.99 Net asset value, end of period ($)(1) 10.55 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 517,302 Net assets(1) 527 Number of units outstanding(1) 47,060 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.80 Management expense ratio (%)(2) 2.80 Management expense ratio before waivers (%)(2) 2.80 Management expense ratio before waivers (%)(2) 2.80 Portfolio turnover rate (%)(3) 17.20 Portfolio turnover rate (%)(3) 17.20

Sun MFS International Value - Investment Series F Sun MFS International Value - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.08 Net asset value, end of period ($)(1) 10.58 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 554 Net assets(1) 529 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.69 Management expense ratio (%)(2) 0.56 Management expense ratio before waivers (%)(2) 1.69 Management expense ratio before waivers (%)(2) 0.56 Portfolio turnover rate (%)(3) 17.20 Portfolio turnover rate (%)(3) 17.20

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

229 Sun MFS International Value Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 428,519 Cash - Receivable for investment units sold - Subscriptions receivable 22,283 Distribution receivable from underlying fund - Other receivable - 450,802 Liabilities Current liabilities Bank indebtedness 596 Redemptions payable 1 Payable for investment units purchased 5,404 Payable for fees & expenses 322 6,323 Net Assets Attributable to Holders of Redeemable Units 444,479

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 12,183 Net realized gain (loss) on sale of investments 47 Change in unrealized appreciation (depreciation) in value of investments 4,580 16,810 Expenses (note 5) Management fees 2,012 Insurance fees 1,513 Administration fees 101 Total operating expenses 3,626 Management fees waived/absorbed by the Manager (91) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,275

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

230 Sun MFS International Value Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 13,275 Holder of Redeemable Unit Transactions Proceeds from Units Issued 431,205 Redemption of Units (1) 431,204 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 444,479 Net Assets Attributable to Holders of Redeemable Units at end of period 444,479

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 13,275 Adjustments for: Net realized gain (loss) on sale of investments (47) Change in unrealized appreciation (depreciation) in value of investments (4,580) Purchases of investments (420,593) Proceeds from sale of investments 2,105 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 322 Net Cash provided by (used in) Operating Activities (409,518) Cash Flows from (used in) Financing Activities Proceeds from units issued 408,922 Redemption of units - Net Cash provided by (used in) Financing Activities 408,922 Net increase (decrease) in cash (596) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (596) Distribution Income Received 12,183

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

231 Sun MFS International Value Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS International Value International Value Fund as its main investment. Please refer to note 8 in the Fund, Series I 14,970 297,920 304,500 accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 9,142 126,019 124,019

Total Investments 423,939 428,519 96.41 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities 15,960 3.59 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 444,479 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS International Value Fund, Series I Cash 25,522,164 Danone SA 343,873 27,339,786 32,316,901 KDDI Corp. 692,618 15,526,323 25,225,613 Nestle SA 368,747 31,996,823 38,148,359 Reckitt Benckiser Group PLC 231,530 21,721,285 29,773,763 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

232 Sun MFS International Value Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS International Val Bundle - Lifetime Advantage Ser A Sun MFS International Val Bundle - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.43 Net asset value, end of period ($)(1) 10.39 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 442,914 Net assets(1) 519 Number of units outstanding(1) 42,457 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.01 Management expense ratio (%)(2) 4.01 Management expense ratio before waivers (%)(2) 4.11 Management expense ratio before waivers (%)(2) 4.11 Portfolio turnover rate (%)(3) 1.43 Portfolio turnover rate (%)(3) 1.43

Sun MFS International Val Bundle - Lifetime Advantage Ser F Sun MFS International Val Bundle - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.52 Net asset value, end of period ($)(1) 10.42 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 526 Net assets(1) 520 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.87 Management expense ratio (%)(2) 1.85 Management expense ratio before waivers (%)(2) 2.97 Management expense ratio before waivers (%)(2) 1.85 Portfolio turnover rate (%)(3) 1.43 Portfolio turnover rate (%)(3) 1.43

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

233 Sun MFS Monthly Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 462,679 Cash - Receivable for investment units sold 469 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 463,148 Liabilities Current liabilities Bank indebtedness 469 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 226 696 Net Assets Attributable to Holders of Redeemable Units 462,452

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 3,959 Net realized gain (loss) on sale of investments (72) Change in unrealized appreciation (depreciation) in value of investments (15,354) (11,467) Expenses (note 5) Management fees 2,366 Insurance fees 653 Administration fees 119 Total operating expenses 3,138 Management fees waived/absorbed by the Manager (285) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (14,320)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

234 Sun MFS Monthly Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (14,320) Holder of Redeemable Unit Transactions Proceeds from Units Issued 478,887 Redemption of Units (2,115) 476,772 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 462,452 Net Assets Attributable to Holders of Redeemable Units at end of period 462,452

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (14,320) Adjustments for: Net realized gain (loss) on sale of investments 72 Change in unrealized appreciation (depreciation) in value of investments 15,354 Purchases of investments (482,558) Proceeds from sale of investments 3,984 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 226 Net Cash provided by (used in) Operating Activities (477,242) Cash Flows from (used in) Financing Activities Proceeds from units issued 478,887 Redemption of units (2,114) Net Cash provided by (used in) Financing Activities 476,773 Net increase (decrease) in cash (469) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (469) Distribution Income Received 3,959

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

235 Sun MFS Monthly Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS Monthly Income Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund's investment objective is to seek to provide a Sun Life MFS Monthly Income consistent level of regular income with capital appreciation as a secondary Fund, Series I 40,975 478,033 462,679 objective over the long term, by investing primarily in income producing equity and debt securities. Please refer to note 8 in the accompanying notes Total Investments 478,033 462,679 100.05 to the financial statements for an explanation of the various risks. Other Assets less Liabilities (227) (0.05) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 462,452 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Anheuser-Busch InBev Worldwide Inc. 5.38%, Jan 15, 2020 150,000 187,674 230,695 Apple Inc. 3.85%, May 4, 2043 150,000 147,468 192,441 BP Capital Markets PLC 4.74%, Mar 11, 2021 120,000 139,946 183,200 Capital One Financial Corp. 3.20%, Feb 5, 2025 200,000 251,130 269,076 Dream Office Real Estate Investment Trust 12,097 278,834 210,125 Enbridge Inc. 7,236 313,410 332,856 General Electric Capital Corp. 5.50%, Jan 8, 2020 145,000 182,762 226,029 Gilead Sciences Inc. 4.80%, Apr 1, 2044 150,000 169,704 209,666 JPMorgan Chase & Co. 3.20%, Jan 25, 2023 150,000 146,409 207,881 Life Technologies Corp. 5.00%, Jan 15, 2021 200,000 236,893 295,891 Magna International Inc. 6,008 212,990 337,169 Royal Bank of Canada 8,842 591,235 655,634 SES SA 3.60%, Apr 4, 2023 150,000 157,316 203,650 Suncor Energy Inc. 10,615 366,155 379,168 Target Corp. 6.00%, Jan 15, 2018 140,000 171,178 212,019 The Bank of Nova Scotia 6,777 414,107 379,309 The Goldman Sachs Group Inc. 3.63%, Jan 22, 2023 150,000 149,211 211,058 The Kroger Co. 3.40%, Apr 15, 2022 200,000 218,498 281,836 The Toronto-Dominion Bank 11,779 546,078 638,893 Transcontinental Inc., Class A 12,090 192,469 208,673 United States Treasury Note 2.00%, Feb 15, 2025 200,000 258,676 271,623 Verizon Communications Inc. 6.40%, Sep 15, 2033 150,000 170,069 238,042 Walgreens Boots Alliance Inc. 3.80%, Nov 18, 2024 150,000 193,113 202,526 Wal-Mart Stores Inc. 6.50%, Aug 15, 2037 150,000 198,396 269,653 Wm. Wrigley Jr. Company 3.38%, Oct 21, 2020 150,000 162,189 212,659

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

236 Sun MFS Monthly Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS Monthly Income - Estate Series A Sun MFS Monthly Income - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.22 Net asset value, end of period ($)(1) 9.77 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 270,537 Net assets(1) 489 Number of units outstanding(1) 29,334 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.70 Management expense ratio (%)(2) 2.70 Management expense ratio before waivers (%)(2) 2.95 Management expense ratio before waivers (%)(2) 2.97 Portfolio turnover rate (%)(3) 2.35 Portfolio turnover rate (%)(3) 2.35

Sun MFS Monthly Income - Estate Series F Sun MFS Monthly Income - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.29 Net asset value, end of period ($)(1) 9.80 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 464 Net assets(1) 489 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.77 Management expense ratio (%)(2) 0.91 Management expense ratio before waivers (%)(2) 2.04 Management expense ratio before waivers (%)(2) 0.91 Portfolio turnover rate (%)(3) 2.35 Portfolio turnover rate (%)(3) 2.35

Sun MFS Monthly Income - Investment Series A Sun MFS Monthly Income - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.24 Net asset value, end of period ($)(1) 9.78 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 189,029 Net assets(1) 489 Number of units outstanding(1) 20,449 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.44 Management expense ratio (%)(2) 2.44 Management expense ratio before waivers (%)(2) 2.72 Management expense ratio before waivers (%)(2) 2.72 Portfolio turnover rate (%)(3) 2.35 Portfolio turnover rate (%)(3) 2.35

Sun MFS Monthly Income - Investment Series F Sun MFS Monthly Income - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.31 Net asset value, end of period ($)(1) 9.81 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 466 Net assets(1) 489 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.31 Management expense ratio (%)(2) 0.45 Management expense ratio before waivers (%)(2) 1.58 Management expense ratio before waivers (%)(2) 0.45 Portfolio turnover rate (%)(3) 2.35 Portfolio turnover rate (%)(3) 2.35

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

237 Sun MFS US Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 992,538 Cash - Receivable for investment units sold 1,988 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 302 994,828 Liabilities Current liabilities Bank indebtedness 1,971 Redemptions payable 1 Payable for investment units purchased 15 Payable for fees & expenses 590 2,577 Net Assets Attributable to Holders of Redeemable Units 992,251

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 15,696 Net realized gain (loss) on sale of investments 784 Change in unrealized appreciation (depreciation) in value of investments 31,815 48,295 Expenses (note 5) Management fees 5,725 Insurance fees 1,893 Administration fees 287 Total operating expenses 7,905 Management fees waived/absorbed by the Manager (172) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 40,562

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

238 Sun MFS US Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 40,562 Holder of Redeemable Unit Transactions Proceeds from Units Issued 954,877 Redemption of Units (3,188) 951,689 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 992,251 Net Assets Attributable to Holders of Redeemable Units at end of period 992,251

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 40,562 Adjustments for: Net realized gain (loss) on sale of investments (784) Change in unrealized appreciation (depreciation) in value of investments (31,815) Purchases of investments (1,000,613) Proceeds from sale of investments 38,701 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (302) Increase (decrease) in fees & expenses payable 590 Net Cash provided by (used in) Operating Activities (953,661) Cash Flows from (used in) Financing Activities Proceeds from units issued 954,877 Redemption of units (3,187) Net Cash provided by (used in) Financing Activities 951,690 Net increase (decrease) in cash (1,971) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (1,971) Distribution Income Received 15,696

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

239 Sun MFS US Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS U.S. Equity Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund aims for long-term capital growth by investing primarily in Sun Life MFS U.S. Equity Fund, Series I 14,941 960,723 992,538 companies domiciled in the U.S. or whose primary stock exchange listing is in the U.S. Please refer to note 8 in the accompanying notes to the financial Total Investments 960,723 992,538 100.03 statements for an explanation of the various risks. Other Assets less Liabilities (287) (0.03) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 992,251 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Accenture PLC 79,974 6,295,350 11,609,111 Alphabet Inc. 25,078 10,500,141 26,805,914 American Express Co. 116,350 8,437,997 11,240,804 American Tower Corp. 88,990 7,265,956 11,984,582 Avago Technologies Ltd. 54,713 9,180,948 11,031,674 Bank of America Corporation 557,613 9,597,926 13,036,197 BlackRock Inc. 19,571 4,673,564 9,257,410 Bristol-Myers Squibb Co. 95,701 5,728,452 9,144,830 Canadian National Railway Co. 114,861 6,836,968 8,915,852 Cognizant Technology Solutions Corp. 134,444 6,738,745 11,209,114 Comcast Corp. 131,634 5,927,921 10,318,391 Danaher Corp. 140,577 8,959,487 18,137,204 EMC Corp. 255,623 7,097,427 9,118,613 Fidelity National Information Services Inc. 110,162 5,956,764 9,273,385 Honeywell International Inc. 75,494 5,507,221 10,861,262 Johnson & Johnson 89,510 7,050,243 12,772,045 JPMorgan Chase & Co. 222,979 11,067,817 20,452,157 MasterCard Inc., Class A 78,061 4,393,821 10,557,195 Mondelez International Inc. 160,321 5,372,823 9,985,962 Monsanto Co. 63,713 8,457,628 8,719,395 Newell Rubbermaid Inc. 177,474 7,407,844 10,867,013 The Goldman Sachs Group Inc. 44,668 7,537,191 11,182,977 Thermo Fisher Scientific Inc. 73,490 6,830,551 14,480,763 Visa Inc., Class A 160,884 7,322,498 17,331,195 Wells Fargo & Co. 168,785 6,466,706 12,745,215

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

240 Sun MFS US Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS US Equity - Estate Series A Sun MFS US Equity - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.74 Net asset value, end of period ($)(1) 10.28 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 840,908 Net assets(1) 514 Number of units outstanding(1) 78,316 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.19 Management expense ratio (%)(2) 3.18 Management expense ratio before waivers (%)(2) 3.26 Management expense ratio before waivers (%)(2) 3.25 Portfolio turnover rate (%)(3) 9.49 Portfolio turnover rate (%)(3) 9.49

Sun MFS US Equity - Estate Series F Sun MFS US Equity - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.83 Net asset value, end of period ($)(1) 10.31 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 541 Net assets(1) 514 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.05 Management expense ratio (%)(2) 0.99 Management expense ratio before waivers (%)(2) 2.12 Management expense ratio before waivers (%)(2) 0.99 Portfolio turnover rate (%)(3) 9.49 Portfolio turnover rate (%)(3) 9.49

Sun MFS US Equity - Investment Series A Sun MFS US Equity - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.80 Net asset value, end of period ($)(1) 10.29 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 148,201 Net assets(1) 514 Number of units outstanding(1) 13,728 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.65 Management expense ratio (%)(2) 2.65 Management expense ratio before waivers (%)(2) 2.72 Management expense ratio before waivers (%)(2) 2.72 Portfolio turnover rate (%)(3) 9.49 Portfolio turnover rate (%)(3) 9.49

Sun MFS US Equity - Investment Series F Sun MFS US Equity - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.87 Net asset value, end of period ($)(1) 10.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 543 Net assets(1) 516 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.54 Management expense ratio (%)(2) 0.48 Management expense ratio before waivers (%)(2) 1.61 Management expense ratio before waivers (%)(2) 0.48 Portfolio turnover rate (%)(3) 9.49 Portfolio turnover rate (%)(3) 9.49

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

241 Sun MFS US Equity Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 433,916 Cash - Receivable for investment units sold 669 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 44 434,629 Liabilities Current liabilities Bank indebtedness 667 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 311 978 Net Assets Attributable to Holders of Redeemable Units 433,651

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 8,023 Net realized gain (loss) on sale of investments (4) Change in unrealized appreciation (depreciation) in value of investments 8,084 16,103 Expenses (note 5) Management fees 2,150 Insurance fees 1,616 Administration fees 108 Total operating expenses 3,874 Management fees waived/absorbed by the Manager (226) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 12,455

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

242 Sun MFS US Equity Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 12,455 Holder of Redeemable Unit Transactions Proceeds from Units Issued 421,196 Redemption of Units - 421,196 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 433,651 Net Assets Attributable to Holders of Redeemable Units at end of period 433,651

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 12,455 Adjustments for: Net realized gain (loss) on sale of investments 4 Change in unrealized appreciation (depreciation) in value of investments (8,084) Purchases of investments (436,996) Proceeds from sale of investments 10,491 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (44) Increase (decrease) in fees & expenses payable 311 Net Cash provided by (used in) Operating Activities (421,863) Cash Flows from (used in) Financing Activities Proceeds from units issued 421,196 Redemption of units - Net Cash provided by (used in) Financing Activities 421,196 Net increase (decrease) in cash (667) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (667) Distribution Income Received 8,023

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

243 Sun MFS US Equity Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS U.S. Equity Fund, Series I 4,639 297,338 308,161 U.S. Equity Fund as its main investment. Please refer to note 8 in the Sun Life MFS Canadian Bond accompanying notes to the financial statements for an explanation of the Fund, Series I 9,270 128,494 125,755 various risks.

Total Investments 425,832 433,916 100.06 Financial Instrument Risk of the Underlying Fund(s) Other Assets less Liabilities (265) (0.06) The Fund is indirectly exposed to currency risk, interest rate risk, other market Total Net Assets 433,651 100.00 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Top 5 Holdings of each of the Underlying Funds statements of the underlying fund(s). As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS U.S. Equity Fund, Series I Alphabet Inc. 25,078 10,500,141 26,805,914 Danaher Corp. 140,577 8,959,487 18,137,204 JPMorgan Chase & Co. 222,979 11,067,817 20,452,157 Thermo Fisher Scientific Inc. 73,490 6,830,551 14,480,763 Visa Inc., Class A 160,884 7,322,498 17,331,195 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

244 Sun MFS US Equity Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS US Equity Bundle - Lifetime Advantage Series A Sun MFS US Equity Bundle - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.50 Net asset value, end of period ($)(1) 10.18 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 432,103 Net assets(1) 509 Number of units outstanding(1) 41,148 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.78 Management expense ratio (%)(2) 3.77 Management expense ratio before waivers (%)(2) 4.01 Management expense ratio before waivers (%)(2) 4.01 Portfolio turnover rate (%)(3) 6.62 Portfolio turnover rate (%)(3) 6.62

Sun MFS US Equity Bundle - Lifetime Advantage Series F Sun MFS US Equity Bundle - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.58 Net asset value, end of period ($)(1) 10.21 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 529 Net assets(1) 510 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.74 Management expense ratio (%)(2) 1.85 Management expense ratio before waivers (%)(2) 2.98 Management expense ratio before waivers (%)(2) 1.85 Portfolio turnover rate (%)(3) 6.62 Portfolio turnover rate (%)(3) 6.62

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

245 Sun MFS US Growth

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,852,382 Cash 53,460 Receivable for investment units sold 3,441 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 1,909,283 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 56,890 Payable for fees & expenses 974 57,865 Net Assets Attributable to Holders of Redeemable Units 1,851,418

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,472 Net realized gain (loss) on sale of investments 210 Change in unrealized appreciation (depreciation) in value of investments 90,751 96,433 Expenses (note 5) Management fees 5,296 Insurance fees 2,061 Administration fees 522 Total operating expenses 7,879 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 88,554

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

246 Sun MFS US Growth

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 88,554 Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,775,146 Redemption of Units (12,282) 1,762,864 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,851,418 Net Assets Attributable to Holders of Redeemable Units at end of period 1,851,418

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 88,554 Adjustments for: Net realized gain (loss) on sale of investments (210) Change in unrealized appreciation (depreciation) in value of investments (90,751) Purchases of investments (1,709,242) Proceeds from sale of investments 1,270 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 974 Net Cash provided by (used in) Operating Activities (1,709,405) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,775,146 Redemption of units (12,281) Net Cash provided by (used in) Financing Activities 1,762,865 Net increase (decrease) in cash 53,460 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 53,460 Distribution Income Received 5,472

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

247 Sun MFS US Growth

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS U.S. Growth Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund's investment objective is to seek capital appreciation by Sun Life MFS U.S. Growth Fund, Series I 68,369 1,761,631 1,852,382 investing primarily in equity securities of issuers located in the United States that are considered to have above-average earnings growth potential Total Investments 1,761,631 1,852,382 100.05 compared to other companies. Please refer to note 8 in the accompanying Other Assets less Liabilities (964) (0.05) notes to the financial statements for an explanation of the various risks. Total Net Assets 1,851,418 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Adobe Systems Inc. 93,529 8,839,225 12,204,801 Alexion Pharmaceuticals Inc. 27,563 5,575,361 7,303,397 Allergan plc 23,791 6,984,904 10,327,533 Alphabet Inc., Class A 18,083 12,981,833 19,542,923 Alphabet Inc., Class C 13,851 7,876,675 14,601,185 Amazon.com Inc. 21,315 11,674,867 20,012,218 American Tower Corp. 84,359 9,279,673 11,360,909 Apple Inc. 80,182 10,689,552 11,723,954 Bristol-Myers Squibb Co. 94,021 6,142,048 8,984,296 Cash 16,100,587 Celgene Corp. 49,436 6,735,524 8,224,111 Costco Wholesale Corp. 38,619 6,507,775 8,663,780 Danaher Corp. 105,017 9,942,124 13,549,263 Facebook Inc. 120,557 10,632,404 17,526,977 IntercontinentalExchange Group Inc. 27,565 6,896,633 9,812,342 MasterCard Inc., Class A 110,028 10,833,160 14,880,504 Microsoft Corp. 117,980 8,673,721 9,092,404 Netflix Inc. 46,704 4,132,105 7,420,583 Priceline.com Inc. 4,860 6,546,569 8,607,227 Ross Stores Inc. 142,956 6,939,111 10,685,608 Salesforce.com Inc. 83,776 6,186,430 9,123,669 Starbucks Corp. 106,536 5,513,001 8,883,796 The TJX Companies Inc. 83,185 6,318,535 8,193,820 Thermo Fisher Scientific Inc. 68,631 9,811,104 13,523,326 Visa Inc., Class A 189,918 13,604,343 20,458,877

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

248 Sun MFS US Growth

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS US Growth - Estate Series A Sun MFS US Growth - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.68 Net asset value, end of period ($)(1) 10.40 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 549,828 Net assets(1) 520 Number of units outstanding(1) 47,071 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.52 Management expense ratio (%)(2) 3.50 Management expense ratio before waivers (%)(2) 3.52 Management expense ratio before waivers (%)(2) 3.50 Portfolio turnover rate (%)(3) 0.27 Portfolio turnover rate (%)(3) 0.27

Sun MFS US Growth - Estate Series F Sun MFS US Growth - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.79 Net asset value, end of period ($)(1) 10.43 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 624,874 Net assets(1) 520 Number of units outstanding(1) 52,980 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.38 Management expense ratio (%)(2) 1.23 Management expense ratio before waivers (%)(2) 2.38 Management expense ratio before waivers (%)(2) 1.23 Portfolio turnover rate (%)(3) 0.27 Portfolio turnover rate (%)(3) 0.27

Sun MFS US Growth - Investment Series A Sun MFS US Growth - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.74 Net asset value, end of period ($)(1) 10.41 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 674,042 Net assets(1) 521 Number of units outstanding(1) 57,410 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.75 Management expense ratio (%)(2) 2.75 Management expense ratio before waivers (%)(2) 2.75 Management expense ratio before waivers (%)(2) 2.75 Portfolio turnover rate (%)(3) 0.27 Portfolio turnover rate (%)(3) 0.27

Sun MFS US Growth - Investment Series F Sun MFS US Growth - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.84 Net asset value, end of period ($)(1) 10.44 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 592 Net assets(1) 521 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.71 Management expense ratio (%)(2) 0.58 Management expense ratio before waivers (%)(2) 1.71 Management expense ratio before waivers (%)(2) 0.58 Portfolio turnover rate (%)(3) 0.27 Portfolio turnover rate (%)(3) 0.27

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

249 Sun MFS US Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 3,150,306 Cash 124,623 Receivable for investment units sold - Subscriptions receivable 1 Distribution receivable from underlying fund - Other receivable 966 3,275,896 Liabilities Current liabilities Bank indebtedness - Redemptions payable 707 Payable for investment units purchased 124,623 Payable for fees & expenses 1,883 127,213 Net Assets Attributable to Holders of Redeemable Units 3,148,683

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 50,209 Net realized gain (loss) on sale of investments 2,682 Change in unrealized appreciation (depreciation) in value of investments 94,574 147,465 Expenses (note 5) Management fees 16,944 Insurance fees 6,993 Administration fees 848 Total operating expenses 24,785 Management fees waived/absorbed by the Manager (580) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 123,260

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

250 Sun MFS US Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 123,260 Holder of Redeemable Unit Transactions Proceeds from Units Issued 3,186,350 Redemption of Units (160,927) 3,025,423 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 3,148,683 Net Assets Attributable to Holders of Redeemable Units at end of period 3,148,683

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 123,260 Adjustments for: Net realized gain (loss) on sale of investments (2,682) Change in unrealized appreciation (depreciation) in value of investments (94,574) Purchases of investments (3,003,344) Proceeds from sale of investments 74,917 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (966) Increase (decrease) in fees & expenses payable 1,883 Net Cash provided by (used in) Operating Activities (2,901,506) Cash Flows from (used in) Financing Activities Proceeds from units issued 3,186,349 Redemption of units (160,220) Net Cash provided by (used in) Financing Activities 3,026,129 Net increase (decrease) in cash 124,623 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 124,623 Distribution Income Received 50,209

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

251 Sun MFS US Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life MFS U.S. Value Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund's investment objective is to seek capital appreciation by Sun Life MFS U.S. Value Fund, Series I 136,072 3,055,732 3,150,306 investing primarily in equity securities of companies with large market capitalizations located in the United States that are considered to be Total Investments 3,055,732 3,150,306 100.05 undervalued compared to their perceived worth. Please refer to note 8 in the Other Assets less Liabilities (1,623) (0.05) accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 3,148,683 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) 3M Co. 9,510 1,243,396 1,990,007 Accenture PLC 19,074 1,624,022 2,768,802 CVS Caremark Corp. 13,680 989,077 1,857,914 Danaher Corp. 11,928 896,422 1,538,947 Exxon Mobil Corp. 16,224 1,570,759 1,756,742 General Mills Inc. 20,396 1,078,365 1,633,629 Honeywell International Inc. 14,608 1,331,550 2,101,640 Johnson & Johnson 26,941 2,588,281 3,844,170 JPMorgan Chase & Co. 54,361 3,140,167 4,986,118 Lockheed Martin Corp. 5,941 790,698 1,792,063 Medtronic PLC 19,861 1,396,289 2,122,141 Merck & Co., Inc. 20,890 1,237,657 1,532,748 MetLife Inc. 26,829 1,333,378 1,796,700 Nestle SA 16,655 1,267,616 1,723,027 Omnicom Group Inc. 14,920 1,107,923 1,568,083 Pfizer Inc. 60,232 1,894,055 2,700,814 Philip Morris International Inc. 29,938 2,788,278 3,655,905 PPG Industries Inc. 15,524 1,650,620 2,130,995 The Goldman Sachs Group Inc. 7,884 1,355,277 1,973,820 The Travelers Cos Inc. 14,500 1,391,680 2,273,222 U.S. Bancorp 34,940 1,633,271 2,070,997 United Parcel Service Inc., Class B 10,650 1,064,526 1,423,620 United Technologies Corp. 14,760 1,650,037 1,969,736 Verizon Communications Inc. 27,954 1,477,242 1,794,766 Wells Fargo & Co. 47,012 2,205,364 3,549,948

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

252 Sun MFS US Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS US Value - Estate Series A Sun MFS US Value - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.87 Net asset value, end of period ($)(1) 10.17 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,711,780 Net assets(1) 509 Number of units outstanding(1) 157,429 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.22 Management expense ratio (%)(2) 3.22 Management expense ratio before waivers (%)(2) 3.29 Management expense ratio before waivers (%)(2) 3.29 Portfolio turnover rate (%)(3) 6.29 Portfolio turnover rate (%)(3) 6.29

Sun MFS US Value - Estate Series F Sun MFS US Value - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.96 Net asset value, end of period ($)(1) 10.20 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 548 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.08 Management expense ratio (%)(2) 1.03 Management expense ratio before waivers (%)(2) 2.15 Management expense ratio before waivers (%)(2) 1.03 Portfolio turnover rate (%)(3) 6.29 Portfolio turnover rate (%)(3) 6.29

Sun MFS US Value - Investment Series A Sun MFS US Value - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.91 Net asset value, end of period ($)(1) 10.18 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 755,505 Net assets(1) 41,085 Number of units outstanding(1) 69,218 Number of units outstanding(1) 4,035 Management expense ratio (%)(2) 2.70 Management expense ratio (%)(2) 2.70 Management expense ratio before waivers (%)(2) 2.77 Management expense ratio before waivers (%)(2) 2.77 Portfolio turnover rate (%)(3) 6.29 Portfolio turnover rate (%)(3) 6.29

Sun MFS US Value - Investment Series F Sun MFS US Value - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 11.00 Net asset value, end of period ($)(1) 10.21 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 550 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.57 Management expense ratio (%)(2) 0.51 Management expense ratio before waivers (%)(2) 1.64 Management expense ratio before waivers (%)(2) 0.51 Portfolio turnover rate (%)(3) 6.29 Portfolio turnover rate (%)(3) 6.29

Sun MFS US Value - Protect Series A Sun MFS US Value - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.81 Net asset value, end of period ($)(1) 10.16 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 636,126 Net assets(1) 508 Number of units outstanding(1) 58,848 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.07 Management expense ratio (%)(2) 4.07 Management expense ratio before waivers (%)(2) 4.18 Management expense ratio before waivers (%)(2) 4.18 Portfolio turnover rate (%)(3) 6.29 Portfolio turnover rate (%)(3) 6.29

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

253 Sun MFS US Value

Financial Highlights (Continued)

Sun MFS US Value - Protect Series F Sun MFS US Value - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.90 Net asset value, end of period ($)(1) 10.19 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 545 Net assets(1) 509 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.94 Management expense ratio (%)(2) 1.92 Management expense ratio before waivers (%)(2) 3.05 Management expense ratio before waivers (%)(2) 1.92 Portfolio turnover rate (%)(3) 6.29 Portfolio turnover rate (%)(3) 6.29

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

254 Sun MFS US Value Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 415,502 Cash - Receivable for investment units sold 399 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 30 415,931 Liabilities Current liabilities Bank indebtedness 399 Redemptions payable 21 Payable for investment units purchased - Payable for fees & expenses 299 719 Net Assets Attributable to Holders of Redeemable Units 415,212

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 8,443 Net realized gain (loss) on sale of investments 57 Change in unrealized appreciation (depreciation) in value of investments 1,488 9,988 Expenses (note 5) Management fees 2,757 Insurance fees 2,089 Administration fees 139 Total operating expenses 4,985 Management fees waived/absorbed by the Manager (359) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 5,362

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

255 Sun MFS US Value Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 5,362 Holder of Redeemable Unit Transactions Proceeds from Units Issued 409,871 Redemption of Units (21) 409,850 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 415,212 Net Assets Attributable to Holders of Redeemable Units at end of period 415,212

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 5,362 Adjustments for: Net realized gain (loss) on sale of investments (57) Change in unrealized appreciation (depreciation) in value of investments (1,488) Purchases of investments (422,159) Proceeds from sale of investments 7,803 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (30) Increase (decrease) in fees & expenses payable 299 Net Cash provided by (used in) Operating Activities (410,270) Cash Flows from (used in) Financing Activities Proceeds from units issued 409,871 Redemption of units - Net Cash provided by (used in) Financing Activities 409,871 Net increase (decrease) in cash (399) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (399) Distribution Income Received 8,443

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

256 Sun MFS US Value Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life MFS Sun Life MFS U.S. Value Fund, Series I 12,681 288,991 293,578 U.S. Value Fund as its main investment. Please refer to note 8 in the Sun Life MFS Canadian Bond accompanying notes to the financial statements for an explanation of the Fund, Series I 8,987 125,023 121,924 various risks.

Total Investments 414,014 415,502 100.07 Financial Instrument Risk of the Underlying Fund(s) Other Assets less Liabilities (290) (0.07) The Fund is indirectly exposed to currency risk, interest rate risk, other market Total Net Assets 415,212 100.00 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Top 5 Holdings of each of the Underlying Funds statements of the underlying fund(s). As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life MFS U.S. Value Fund, Series I Accenture PLC 19,074 1,624,022 2,768,802 Johnson & Johnson 26,941 2,588,281 3,844,170 JPMorgan Chase & Co. 54,361 3,140,167 4,986,118 Philip Morris International Inc. 29,938 2,788,278 3,655,905 Wells Fargo & Co. 47,012 2,205,364 3,549,948 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

257 Sun MFS US Value Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun MFS US Value Bundle - Lifetime Advantage Series A Sun MFS US Value Bundle - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.61 Net asset value, end of period ($)(1) 10.11 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 396,423 Net assets(1) 505 Number of units outstanding(1) 37,355 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.88 Management expense ratio (%)(2) 3.83 Management expense ratio before waivers (%)(2) 4.18 Management expense ratio before waivers (%)(2) 4.11 Portfolio turnover rate (%)(3) 4.16 Portfolio turnover rate (%)(3) 4.16

Sun MFS US Value Bundle - Lifetime Advantage Series F Sun MFS US Value Bundle - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.70 Net asset value, end of period ($)(1) 10.14 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 535 Net assets(1) 17,749 Number of units outstanding(1) 50 Number of units outstanding(1) 1,751 Management expense ratio (%)(2) 2.70 Management expense ratio (%)(2) 1.87 Management expense ratio before waivers (%)(2) 3.00 Management expense ratio before waivers (%)(2) 1.87 Portfolio turnover rate (%)(3) 4.16 Portfolio turnover rate (%)(3) 4.16

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

258 Sun Money Market

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 4,043,811 Cash 192 Receivable for investment units sold - Subscriptions receivable 148,290 Distribution receivable from underlying fund - Other receivable 651 4,192,944 Liabilities Current liabilities Bank indebtedness - Redemptions payable 112,071 Payable for investment units purchased - Payable for fees & expenses 897 112,968 Net Assets Attributable to Holders of Redeemable Units 4,079,976

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 9,862 Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - 9,862 Expenses (note 5) Management fees 8,400 Insurance fees 2,708 Administration fees 6,476 Total operating expenses 17,584 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,722)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

259 Sun Money Market

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,722) Holder of Redeemable Unit Transactions Proceeds from Units Issued 12,174,269 Redemption of Units (8,086,571) 4,087,698 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 4,079,976 Net Assets Attributable to Holders of Redeemable Units at end of period 4,079,976

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (7,722) Adjustments for: Net realized gain (loss) on sale of investments - Change in unrealized appreciation (depreciation) in value of investments - Purchases of investments (10,249,136) Proceeds from sale of investments 6,205,325 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (651) Increase (decrease) in fees & expenses payable 897 Net Cash provided by (used in) Operating Activities (4,051,287) Cash Flows from (used in) Financing Activities Proceeds from units issued 12,025,979 Redemption of units (7,974,500) Net Cash provided by (used in) Financing Activities 4,051,479 Net increase (decrease) in cash 192 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 192 Distribution Income Received 9,862

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

260 Sun Money Market

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) Sun Life Money Market Fund, Series I 404,381 4,043,811 4,043,811 Royal Bank of Canada 0.94%, Feb 26, 2016 110,600,000 109,844,602 109,844,602 Total Investments 4,043,811 4,043,811 99.11 The Toronto-Dominion Bank 0.78%, Feb 4, 2016 42,100,000 42,060,426 42,060,426 Other Assets less Liabilities 36,165 0.89 Credit Canada Inc. 0.82%, Jun 10, 2016 50,000,000 49,786,500 49,786,500 Total Net Assets 4,079,976 100.00

Discussion of Financial Risk Management Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk

Number of Average Fair The Fund invests in the Sun Life Money Market Fund (the "underlying fund"). Investment Shares Cost ($) Value ($) The underlying fund's investment objective is to achieve a high level of current Bank of Montreal income while seeking to protect capital and to maintain liquidity by investing 0.79%, Jan 18, 2016 49,500,000 49,471,290 49,471,290 primarily in Canadian-dollar-denominated money market instruments. The Bank of Montreal underlying fund may invest up to 10% of the fund's assets in Canadian-dollar- 0.63%, Jan 27, 2016 37,400,000 37,282,938 37,282,938 denominated money market instruments of foreign issuers. Please refer to Bank of Nova Scotia note 8 in the accompanying notes to the financial statements for an 0.74%, Jan 29, 2016 127,900,000 127,726,056 127,726,056 explanation of the various risks. Canadian Imperial Bank of Commerce 0.80%, Oct 18, 2016 104,300,000 103,474,987 103,474,987 Canadian Treasury Bill Financial Instrument Risk of the Underlying Fund(s) 0.39%, Jan 28, 2016 190,381,000 190,179,196 190,179,196 Canadian Treasury Bill The Fund is indirectly exposed to currency risk, interest rate risk, other market 0.47%, Feb 25, 2016 220,000,000 219,740,400 219,740,400 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Canadian Treasury Bill to the extent the underlying fund(s) is (are) exposed to these risks. Please refer 0.50%, Mar 10, 2016 259,600,000 259,254,666 259,254,666 to note 8 for an explanation of the management of the financial risks. The Canadian Treasury Bill detailed risk analyses of the underlying fund(s) are disclosed in the financial 0.43%, Mar 24, 2016 104,700,000 104,513,722 104,513,722 statements of the underlying fund(s). Canadian Treasury Bill 0.50%, Apr 21, 2016 245,900,000 245,389,185 245,389,185 Limited 0.76%, Jan 5, 2016 71,600,000 71,547,732 71,547,732 Manulife Bank of Canada 1.50%, Jan 12, 2016 46,000,000 45,323,800 45,323,800 0.77%, Jan 15, 2016 100,000,000 99,935,000 99,935,000 Province of Alberta 0.52%, Jan 12, 2016 78,500,000 78,399,520 78,399,520 Province of Manitoba 0.58%, Mar 9, 2016 40,000,000 39,942,400 39,942,400 Province of Manitoba 0.65%, Mar 23, 2016 47,700,000 47,628,927 47,628,927 Province of Ontario 0.53%, Jan 6, 2016 106,300,000 106,167,467 106,167,467 Province of Ontario 0.54%, Jan 13, 2016 79,900,000 79,809,032 79,809,032 Province of Ontario 0.57%, Feb 24, 2016 45,000,000 44,937,580 44,937,580 Province of Ontario 0.57%, Mar 2, 2016 83,000,000 82,882,140 82,882,140 Province of Ontario 0.62%, Mar 9, 2016 39,800,000 39,747,464 39,747,464 Province of Quebec 0.62%, Mar 4, 2016 103,100,000 102,959,845 102,959,845 Province of Quebec 0.56%, Mar 11, 2016 40,000,000 39,920,800 39,920,800

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

261 Sun Money Market

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Money Market - Estate Series A Sun Money Market - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,185,313 Net assets(1) 18,390 Number of units outstanding(1) 118,950 Number of units outstanding(1) 1,840 Management expense ratio (%)(2) 1.18 Management expense ratio (%)(2) 1.18 Management expense ratio before waivers (%)(2) 1.18 Management expense ratio before waivers (%)(2) 1.18 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

Sun Money Market - Estate Series F Sun Money Market - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 499 Net assets(1) 500 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 0.96 Management expense ratio (%)(2) 0.61 Management expense ratio before waivers (%)(2) 0.96 Management expense ratio before waivers (%)(2) 0.61 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

Sun Money Market - Investment Series A Sun Money Market - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.97 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,160,792 Net assets(1) 500 Number of units outstanding(1) 116,442 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.10 Management expense ratio (%)(2) 1.10 Management expense ratio before waivers (%)(2) 1.10 Management expense ratio before waivers (%)(2) 1.10 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

Sun Money Market - Investment Series F Sun Money Market - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.99 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 499 Net assets(1) 27,342 Number of units outstanding(1) 50 Number of units outstanding(1) 2,733 Management expense ratio (%)(2) 0.88 Management expense ratio (%)(2) 0.54 Management expense ratio before waivers (%)(2) 0.88 Management expense ratio before waivers (%)(2) 0.54 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

Sun Money Market - Lifetime Advantage Series A Sun Money Market - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,123,238 Net assets(1) 153,799 Number of units outstanding(1) 112,727 Number of units outstanding(1) 15,389 Management expense ratio (%)(2) 1.17 Management expense ratio (%)(2) 1.17 Management expense ratio before waivers (%)(2) 1.17 Management expense ratio before waivers (%)(2) 1.17 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

262 Sun Money Market

Financial Highlights (Continued)

Sun Money Market - Lifetime Advantage Series F Sun Money Market - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 499 Net assets(1) 334,944 Number of units outstanding(1) 50 Number of units outstanding(1) 33,490 Management expense ratio (%)(2) 1.00 Management expense ratio (%)(2) 0.67 Management expense ratio before waivers (%)(2) 1.00 Management expense ratio before waivers (%)(2) 0.67 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

Sun Money Market - Protect Series A Sun Money Market - Protect Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.95 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 64,164 Net assets(1) 500 Number of units outstanding(1) 6,446 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.23 Management expense ratio (%)(2) 1.23 Management expense ratio before waivers (%)(2) 1.23 Management expense ratio before waivers (%)(2) 1.23 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

Sun Money Market - Protect Series F Sun Money Market - Protect Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.98 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 499 Net assets(1) 8,498 Number of units outstanding(1) 50 Number of units outstanding(1) 850 Management expense ratio (%)(2) 1.00 Management expense ratio (%)(2) 0.67 Management expense ratio before waivers (%)(2) 1.00 Management expense ratio before waivers (%)(2) 0.67 Portfolio turnover rate (%)(3) 267.21 Portfolio turnover rate (%)(3) 267.21

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

263 Sun NWQ Flexible Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 783,941 Cash 11,696 Receivable for investment units sold - Subscriptions receivable - Distribution receivable from underlying fund - Other receivable 43 795,680 Liabilities Current liabilities Bank indebtedness - Redemptions payable 89 Payable for investment units purchased 11,696 Payable for fees & expenses 314 12,099 Net Assets Attributable to Holders of Redeemable Units 783,581

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 12,902 Net realized gain (loss) on sale of investments (274) Change in unrealized appreciation (depreciation) in value of investments (18,830) (6,202) Expenses (note 5) Management fees 3,499 Insurance fees 615 Administration fees 503 Total operating expenses 4,617 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (10,819)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

264 Sun NWQ Flexible Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (10,819) Holder of Redeemable Unit Transactions Proceeds from Units Issued 832,151 Redemption of Units (37,751) 794,400 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 783,581 Net Assets Attributable to Holders of Redeemable Units at end of period 783,581

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (10,819) Adjustments for: Net realized gain (loss) on sale of investments 274 Change in unrealized appreciation (depreciation) in value of investments 18,830 Purchases of investments (810,139) Proceeds from sale of investments 18,790 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (43) Increase (decrease) in fees & expenses payable 314 Net Cash provided by (used in) Operating Activities (782,793) Cash Flows from (used in) Financing Activities Proceeds from units issued 832,151 Redemption of units (37,662) Net Cash provided by (used in) Financing Activities 794,489 Net increase (decrease) in cash 11,696 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 11,696 Distribution Income Received 12,902

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

265 Sun NWQ Flexible Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life NWQ Flexible Income Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to achieve income and capital appreciation Sun Life NWQ Flexible Income by investing primarily in a diversified portfolio of income producing securities. Fund, Series I 81,239 802,771 783,941 Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Total Investments 802,771 783,941 100.05

Other Assets less Liabilities (360) (0.05) Financial Instrument Risk of the Underlying Fund(s)

Total Net Assets 783,581 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Top 25 Holdings of Underlying Fund detailed risk analyses of the underlying fund(s) are disclosed in the financial As at December 31, 2015 statements of the underlying fund(s).

Number of Average Fair Investment Shares Cost ($) Value ($) Ally Financial Inc. 5.75%, Nov 20, 2025 725,000 979,664 1,022,205 AstraZeneca PLC, Sponsored ADR 22,400 952,894 1,056,384 Bank of America Corp. 6.50%, Dec 31, 2049 675,000 874,177 989,214 Cash 3,776,586 CenturyLink Inc. 7.65%, Mar 15, 2042 950,000 1,090,969 1,016,127 Cott Beverages Inc. 5.38%, Jul 1, 2022 1,250,000 1,553,636 1,705,990 Digital Realty Trust Inc., Series H, Preferred 28,175 975,968 1,052,810 DISH DBS Corp. 5.88%, Nov 15, 2024 1,075,000 1,318,617 1,332,756 Frontier Communications Corp. 7.63%, Apr 15, 2024 900,000 1,017,540 1,056,411 Frontier Communications Corp., Series A, Preferred 10,600 1,325,872 1,348,467 GCI Inc. 6.88%, Apr 15, 2025 902,000 1,144,896 1,287,425 Gilead Sciences Inc. 12,200 1,738,857 1,714,870 GlaxoSmithKline PLC, ADR 18,200 965,345 1,020,114 Iron Mountain Inc. 6.00%, Aug 15, 2023 800,000 1,092,419 1,161,289 JPMorgan Chase & Co. 6.75%, Aug 29, 2049 800,000 1,059,821 1,212,685 Kindred Healthcare Inc. 6.38%, Apr 15, 2022 875,000 1,087,715 1,013,393 L Brands Inc. 6.95%, Mar 1, 2033 1,000,000 1,394,156 1,389,101 Ladenburg Thalmann Financial Services Inc., Series A, Preferred 30,140 923,495 1,035,383 McDonald's Corp. 4.88%, Dec 9, 2045 975,000 1,347,942 1,367,965 National General Holdings Corp., 7.63%, Preferred 30,800 998,066 1,050,783 RBS Capital Funding Trust VII, Series G, Preferred 29,016 898,390 1,004,833 RR Donnelley & Sons Co. 6.50%, Nov 15, 2023 925,000 1,183,539 1,193,368 United Parcel Service Inc., Class B 7,675 961,857 1,025,942 United States Cellular Corp., 7.25%, Preferred 39,299 1,281,176 1,399,695 Wells Fargo & Co., Series L, Preferred 600 922,435 969,302

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

266 Sun NWQ Flexible Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun NWQ Flexible Income - Estate Series A Sun NWQ Flexible Income - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.58 Net asset value, end of period ($)(1) 9.86 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 611,381 Net assets(1) 493 Number of units outstanding(1) 63,836 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.30 Management expense ratio (%)(2) 2.30 Management expense ratio before waivers (%)(2) 2.30 Management expense ratio before waivers (%)(2) 2.30 Portfolio turnover rate (%)(3) 5.91 Portfolio turnover rate (%)(3) 5.91

Sun NWQ Flexible Income - Estate Series F Sun NWQ Flexible Income - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.61 Net asset value, end of period ($)(1) 9.89 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 481 Net assets(1) 49,977 Number of units outstanding(1) 50 Number of units outstanding(1) 5,054 Management expense ratio (%)(2) 1.76 Management expense ratio (%)(2) 0.63 Management expense ratio before waivers (%)(2) 1.76 Management expense ratio before waivers (%)(2) 0.63 Portfolio turnover rate (%)(3) 5.91 Portfolio turnover rate (%)(3) 5.91

Sun NWQ Flexible Income - Investment Series A Sun NWQ Flexible Income - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.59 Net asset value, end of period ($)(1) 9.87 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 119,780 Net assets(1) 494 Number of units outstanding(1) 12,494 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.17 Management expense ratio (%)(2) 2.15 Management expense ratio before waivers (%)(2) 2.17 Management expense ratio before waivers (%)(2) 2.15 Portfolio turnover rate (%)(3) 5.91 Portfolio turnover rate (%)(3) 5.91

Sun NWQ Flexible Income - Investment Series F Sun NWQ Flexible Income - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.62 Net asset value, end of period ($)(1) 9.89 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 481 Net assets(1) 494 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.59 Management expense ratio (%)(2) 0.45 Management expense ratio before waivers (%)(2) 1.59 Management expense ratio before waivers (%)(2) 0.45 Portfolio turnover rate (%)(3) 5.91 Portfolio turnover rate (%)(3) 5.91

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

267 Sun PH&N Short Term Bond and Mortgage

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,368,174 Cash - Receivable for investment units sold 18,187 Subscriptions receivable 50 Distribution receivable from underlying fund - Other receivable - 1,386,411 Liabilities Current liabilities Bank indebtedness 18,155 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 596 18,751 Net Assets Attributable to Holders of Redeemable Units 1,367,660

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 14,922 Net realized gain (loss) on sale of investments (150) Change in unrealized appreciation (depreciation) in value of investments (8,619) 6,153 Expenses (note 5) Management fees 6,435 Insurance fees 1,088 Administration fees 925 Total operating expenses 8,448 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (2,295)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

268 Sun PH&N Short Term Bond and Mortgage

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (2,295) Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,602,084 Redemption of Units (232,129) 1,369,955 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,367,660 Net Assets Attributable to Holders of Redeemable Units at end of period 1,367,660

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (2,295) Adjustments for: Net realized gain (loss) on sale of investments 150 Change in unrealized appreciation (depreciation) in value of investments 8,619 Purchases of investments (1,400,143) Proceeds from sale of investments 5,013 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 596 Net Cash provided by (used in) Operating Activities (1,388,060) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,602,034 Redemption of units (232,129) Net Cash provided by (used in) Financing Activities 1,369,905 Net increase (decrease) in cash (18,155) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (18,155) Distribution Income Received 14,922

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

269 Sun PH&N Short Term Bond and Mortgage

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) Phillips, Hager & North Short Term Bond The Bank of Nova Scotia & Mortgage Fund, Series O 134,655 1,376,793 1,368,174 1.33%, May 1, 2018 55,039,000 54,983,787 54,863,022 The Toronto-Dominion Bank Total Investments 1,376,793 1,368,174 100.04 1.82%, Apr 3, 2017 32,064,000 32,289,913 32,330,889 The Toronto-Dominion Bank Other Assets less Liabilities (514) (0.04) 2.43%, Aug 15, 2017 44,746,000 45,126,449 45,619,512 Total Net Assets 1,367,660 100.00 Discussion of Financial Risk Management Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk The Fund invests in the Phillips, Hager & North Short Term Bond & Mortgage Number of Average Fair Fund (the "underlying fund"). The underlying fund seeks to provide relatively Investment Shares Cost ($) Value ($) high yields and stability of capital by investing primarily in a well-diversified Bank of Montreal portfolio of short-term fixed income securities issued by Canadian 2.96%, Aug 2, 2016 88,935,000 91,114,363 89,936,199 governments and corporations, and first mortgages on property located in Canada Housing Trust Canada. Please refer to note 8 in the accompanying notes to the financial 2.05%, Jun 15, 2017 127,413,000 130,116,932 130,035,343 statements for an explanation of the various risks. Canada Housing Trust 1.70%, Dec 15, 2017 159,088,000 162,902,990 162,151,262 Canada Housing Trust Financial Instrument Risk of the Underlying Fund(s) 2.05%, Jun 15, 2018 46,760,000 48,252,955 48,184,505 Canada Housing Trust The Fund is indirectly exposed to currency risk, interest rate risk, other market 2.35%, Dec 15, 2018 38,209,000 39,701,143 39,837,120 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Canada Housing Trust to the extent the underlying fund(s) is (are) exposed to these risks. Please refer 2.00%, Dec 15, 2019 61,252,000 63,032,304 63,422,678 to note 8 for an explanation of the management of the financial risks. The Canada Housing Trust detailed risk analyses of the underlying fund(s) are disclosed in the financial 1.45%, Jun 15, 2020 105,500,000 106,512,318 106,788,293 statements of the underlying fund(s). Canadian Imperial Bank of Commerce 1.75%, Jun 1, 2016 33,537,000 33,540,754 33,646,164 Canadian Imperial Bank of Commerce 2.65%, Nov 8, 2016 56,434,000 57,180,211 57,179,593 Canadian Imperial Bank of Commerce 1.70%, Oct 9, 2018 43,212,000 43,292,880 43,426,318 Canadian Imperial Bank of Commerce 3.00%, Oct 28, 2024 31,500,000 31,594,773 31,593,403 Cards II Trust Medium Term 1.98%, Jan 15, 2016 68,222,000 68,538,213 68,235,213 Genesis Trust 2.30%, Feb 25, 2017 78,576,000 79,629,863 79,539,724 Government of Canada 1.25%, Aug 1, 2017 78,987,000 79,978,724 79,941,729 Government of Canada 0.75%, Sep 1, 2020 388,237,000 386,288,170 388,626,623 HSBC Bank Canada 2.90%, Jan 13, 2017 35,184,000 35,708,552 35,753,258 National Grid Electronic 2.73%, Sep 20, 2017 34,476,000 34,845,130 35,227,843 Province of Ontario 2.10%, Sep 8, 2018 346,996,000 360,132,480 357,600,503 Province of Ontario 4.40%, Jun 2, 2019 114,815,000 127,479,746 127,368,389 Province of Ontario 4.20%, Jun 2, 2020 188,112,000 211,757,136 211,123,216 Province of Alberta 1.25%, Jun 1, 2020 56,603,000 55,988,857 56,372,606 Royal Bank of Canada 2.26%, Mar 12, 2018 45,920,000 46,748,499 46,746,543

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

270 Sun PH&N Short Term Bond and Mortgage

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun PH&N Short Term Bond and Mortgage - Estate Series A Sun PH&N Short Term Bond and Mortgage - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.96 Net asset value, end of period ($)(1) 9.99 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 401,325 Net assets(1) 500 Number of units outstanding(1) 40,309 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.33 Management expense ratio (%)(2) 1.77 Management expense ratio before waivers (%)(2) 2.33 Management expense ratio before waivers (%)(2) 1.77 Portfolio turnover rate (%)(3) 3.63 Portfolio turnover rate (%)(3) 3.63

Sun PH&N Short Term Bond and Mortgage - Investment Series A Sun PH&N Short Term Bond and Mortgage - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.97 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 846,298 Net assets(1) 500 Number of units outstanding(1) 84,882 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.18 Management expense ratio (%)(2) 1.60 Management expense ratio before waivers (%)(2) 2.18 Management expense ratio before waivers (%)(2) 1.60 Portfolio turnover rate (%)(3) 3.63 Portfolio turnover rate (%)(3) 3.63

Sun PH&N Short Term Bond and Mortgage - Lifetime Adv Ser A Sun PH&N Short Term Bond and Mortgage - Lifetime Adv Ser F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.90 Net asset value, end of period ($)(1) 9.95 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 118,540 Net assets(1) 497 Number of units outstanding(1) 11,972 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.09 Management expense ratio (%)(2) 2.48 Management expense ratio before waivers (%)(2) 3.09 Management expense ratio before waivers (%)(2) 2.48 Portfolio turnover rate (%)(3) 3.63 Portfolio turnover rate (%)(3) 3.63

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

271 Sun RBC Global High Yield Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 312,165 Cash - Receivable for investment units sold 429 Subscriptions receivable 50 Distribution receivable from underlying fund - Other receivable - 312,644 Liabilities Current liabilities Bank indebtedness 429 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 134 563 Net Assets Attributable to Holders of Redeemable Units 312,081

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 7,030 Net realized gain (loss) on sale of investments (52) Change in unrealized appreciation (depreciation) in value of investments (12,618) (5,640) Expenses (note 5) Management fees 1,568 Insurance fees 206 Administration fees 283 Total operating expenses 2,057 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,697)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

272 Sun RBC Global High Yield Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (7,697) Holder of Redeemable Unit Transactions Proceeds from Units Issued 323,778 Redemption of Units (4,000) 319,778 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 312,081 Net Assets Attributable to Holders of Redeemable Units at end of period 312,081

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (7,697) Adjustments for: Net realized gain (loss) on sale of investments 52 Change in unrealized appreciation (depreciation) in value of investments 12,618 Purchases of investments (330,759) Proceeds from sale of investments 5,495 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 134 Net Cash provided by (used in) Operating Activities (320,157) Cash Flows from (used in) Financing Activities Proceeds from units issued 323,728 Redemption of units (4,000) Net Cash provided by (used in) Financing Activities 319,728 Net increase (decrease) in cash (429) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (429) Distribution Income Received 7,030

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

273 Sun RBC Global High Yield Bond

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) RBC Global High Yield Bond Toll Brothers Finance Corp. Fund, Series O 31,052 324,783 312,165 5.88%, Feb 15, 2022 14,000,000 16,266,092 20,437,249 United States Treasury Total Investments 324,783 312,165 100.03 2.50%, May 15, 2024 19,375,000 24,766,338 27,403,494 Vietnam (Social) Other Assets less Liabilities (84) (0.03) 4.80%, Nov 19, 2024 13,415,000 16,577,386 17,943,096 Total Net Assets 312,081 100.00 Discussion of Financial Risk Management Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk The Fund invests in the RBC Global High Yield Bond Fund (the "underlying Number of Average Fair fund"). The underlying fund seeks to achieve a yield advantage while providing Investment Shares Cost ($) Value ($) above average total returns that are comprised of interest income and capital Ball Corp. growth primarily by investing directly in higher yielding corporate or 5.25%, Jul 1, 2025 12,500,000 15,621,564 17,750,277 government debt securities from anywhere around the world or indirectly by BlueBay Emerging Markets Corporate investing in mutual funds (including exchange-traded funds) that invest in such Bond Fund, Series O 10,907,443 116,573,279 124,568,519 securities. Please refer to note 8 in the accompanying notes to the financial Ccoh Safari LIC. statements for an explanation of the various risks. 5.75%, Feb 15, 2026 15,000,000 19,880,913 20,859,278 Corp Nacional del Cobre de Chile 3.88%, Nov 3, 2021 17,388,000 18,881,404 23,182,941 Financial Instrument Risk of the Underlying Fund(s) Lennar Corp. 4.75%, May 30, 2025 14,000,000 16,905,258 19,032,794 The Fund is indirectly exposed to currency risk, interest rate risk, other market Owens-Brockway Glass Container Inc. risk, credit risk and liquidity risk through its holdings in the underlying fund(s), 5.00%, Jan 15, 2022 14,000,000 16,698,734 19,008,579 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Pemex Project Funding Master Trust to note 8 for an explanation of the management of the financial risks. The 6.63%, Jun 15, 2035 14,325,000 18,439,549 17,814,575 detailed risk analyses of the underlying fund(s) are disclosed in the financial Republic of Croatia statements of the underlying fund(s). 6.75%, Nov 5, 2019 22,275,000 28,863,270 33,074,075 Republic of Hungary 6.25%, Jan 29, 2020 19,860,000 28,858,790 30,755,932 Republic of Hungary 5.38%, Mar 25, 2024 12,900,000 18,051,367 19,597,040 Republic of Panama 7.13%, Jan 29, 2026 15,530,000 21,610,503 26,832,496 Republic of 8.38%, Jun 17, 2019 11,730,000 16,629,116 19,773,741 Republic of Philippines 7.75%, Jan 14, 2031 15,181,000 24,050,316 29,565,979 Republic of Serbia 5.88%, Dec 3, 2018 14,550,000 19,919,128 21,227,457 Republic of Slovenia 5.50%, Oct 26, 2022 13,235,000 16,026,492 20,488,794 Republic of Turkey 5.63%, Mar 30, 2021 11,925,000 16,899,211 17,486,947 Russian Federation 5.00%, Apr 29, 2020 13,200,000 16,526,931 18,877,534 Russian Federation 4.88%, Sep 16, 2023 15,700,000 19,553,395 22,127,832 Sinochem Overseas Capital Co. Ltd. 4.50%, Nov 12, 2020 15,150,000 17,051,561 22,020,222 Smithfield Foods Inc. 6.63%, Aug 15, 2022 14,085,000 16,389,555 20,293,353 State Treas Republic 5.13%, Apr 21, 2021 16,020,000 22,066,766 24,703,873 T-Mobile USA Inc. 6.63%, Apr 1, 2023 14,500,000 16,477,537 20,515,082

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

274 Sun RBC Global High Yield Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun RBC Global High Yield Bond - Estate Series A Sun RBC Global High Yield Bond - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.56 Net asset value, end of period ($)(1) 9.60 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 90,401 Net assets(1) 480 Number of units outstanding(1) 9,453 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.37 Management expense ratio (%)(2) 1.80 Management expense ratio before waivers (%)(2) 2.37 Management expense ratio before waivers (%)(2) 1.80 Portfolio turnover rate (%)(3) 3.91 Portfolio turnover rate (%)(3) 3.91

Sun RBC Global High Yield Bond - Investment Series A Sun RBC Global High Yield Bond - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.57 Net asset value, end of period ($)(1) 9.61 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 220,720 Net assets(1) 480 Number of units outstanding(1) 23,070 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.22 Management expense ratio (%)(2) 1.63 Management expense ratio before waivers (%)(2) 2.22 Management expense ratio before waivers (%)(2) 1.63 Portfolio turnover rate (%)(3) 3.91 Portfolio turnover rate (%)(3) 3.91

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

275 Sun RBC North American Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 289,160 Cash 285 Receivable for investment units sold - Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 289,445 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased 285 Payable for fees & expenses 154 439 Net Assets Attributable to Holders of Redeemable Units 289,006

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 8,850 Net realized gain (loss) on sale of investments 110 Change in unrealized appreciation (depreciation) in value of investments (5,138) 3,822 Expenses (note 5) Management fees 1,275 Insurance fees 294 Administration fees 276 Total operating expenses 1,845 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 1,977

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

276 Sun RBC North American Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 1,977 Holder of Redeemable Unit Transactions Proceeds from Units Issued 289,793 Redemption of Units (2,764) 287,029 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 289,006 Net Assets Attributable to Holders of Redeemable Units at end of period 289,006

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 1,977 Adjustments for: Net realized gain (loss) on sale of investments (110) Change in unrealized appreciation (depreciation) in value of investments 5,138 Purchases of investments (298,643) Proceeds from sale of investments 4,740 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 154 Net Cash provided by (used in) Operating Activities (286,744) Cash Flows from (used in) Financing Activities Proceeds from units issued 289,793 Redemption of units (2,764) Net Cash provided by (used in) Financing Activities 287,029 Net increase (decrease) in cash 285 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 285 Distribution Income Received 8,850

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

277 Sun RBC North American Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the RBC North American Value Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to provide long-term capital growth by RBC North American primarily in equity securities of Canadian and/or U.S. companies Fund, Series O 13,174 294,298 289,160 priced below their true value and offering long-term opportunities for growth. Please refer to note 8 in the accompanying notes to the financial statements Total Investments 294,298 289,160 100.05 for an explanation of the various risks. Other Assets less Liabilities (154) (0.05) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 289,006 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Abbott Laboratories 425,000 22,919,470 26,410,336 Alphabet Inc., Class C 37,602 17,789,674 39,484,441 Amerisource-Bergen 200,000 15,201,424 28,693,787 Apple Inc. 241,000 25,864,273 35,089,560 BCE Inc. 697,000 34,859,807 37,261,620 , Class B 169,200 24,244,452 30,895,915 Brookfield Asset, Class A 1,435,847 45,294,491 62,674,722 Brookfield Property Partners LP 807,100 14,782,972 26,004,762 Canadian Natural Resources 1,101,100 38,840,516 33,275,242 Canadian Pacific Rail 180,000 30,308,954 31,811,400 D R Horton Inc. 600,000 15,345,786 26,591,947 JPMorgan Chase & Co. 364,900 23,882,225 33,339,348 Lowes Co. 250,000 14,105,788 26,298,948 Manulife Financial Corp. 1,441,305 28,982,943 29,892,666 Medtronic PLC 260,000 18,512,211 27,663,899 Microsoft Corp. 453,400 18,161,761 34,790,780 Nike Inc., Class B 310,000 13,376,633 26,815,622 Ross Stores Inc. 375,000 25,030,140 27,921,336 Royal Bank of Canada 1,046,355 76,168,922 77,587,223 Suncor Energy Inc. 1,466,400 49,510,848 52,379,808 The Bank of Nova Scotia 1,062,513 67,630,966 59,468,853 The Toronto-Dominion Bank 1,555,235 78,301,361 84,355,946 Thermo Fisher Scientific 150,000 26,123,414 29,441,677 Transcanada Corp. 582,400 30,470,551 26,318,656 Unitedhealth Group 160,000 13,201,418 26,044,555

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

278 Sun RBC North American Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun RBC North American Value - Estate Series A Sun RBC North American Value - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.48 Net asset value, end of period ($)(1) 9.65 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 11,245 Net assets(1) 52,180 Number of units outstanding(1) 1,186 Number of units outstanding(1) 5,408 Management expense ratio (%)(2) 3.50 Management expense ratio (%)(2) 2.37 Management expense ratio before waivers (%)(2) 3.50 Management expense ratio before waivers (%)(2) 2.37 Portfolio turnover rate (%)(3) 4.44 Portfolio turnover rate (%)(3) 4.44

Sun RBC North American Value - Investment Series A Sun RBC North American Value - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.60 Net asset value, end of period ($)(1) 9.67 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 225,097 Net assets(1) 484 Number of units outstanding(1) 23,443 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.84 Management expense ratio (%)(2) 1.92 Management expense ratio before waivers (%)(2) 2.84 Management expense ratio before waivers (%)(2) 1.92 Portfolio turnover rate (%)(3) 4.44 Portfolio turnover rate (%)(3) 4.44

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

279 Sun RBC North American Value Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 183,520 Cash - Receivable for investment units sold 335 Subscriptions receivable 38,772 Distribution receivable from underlying fund - Other receivable - 222,627 Liabilities Current liabilities Bank indebtedness 335 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 141 476 Net Assets Attributable to Holders of Redeemable Units 222,151

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,906 Net realized gain (loss) on sale of investments (67) Change in unrealized appreciation (depreciation) in value of investments (7,664) (1,825) Expenses (note 5) Management fees 1,817 Insurance fees 1,365 Administration fees 91 Total operating expenses 3,273 Management fees waived/absorbed by the Manager (118) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (4,980)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

280 Sun RBC North American Value Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (4,980) Holder of Redeemable Unit Transactions Proceeds from Units Issued 227,131 Redemption of Units - 227,131 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 222,151 Net Assets Attributable to Holders of Redeemable Units at end of period 222,151

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (4,980) Adjustments for: Net realized gain (loss) on sale of investments 67 Change in unrealized appreciation (depreciation) in value of investments 7,664 Purchases of investments (194,264) Proceeds from sale of investments 2,678 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 141 Net Cash provided by (used in) Operating Activities (188,694) Cash Flows from (used in) Financing Activities Proceeds from units issued 188,359 Redemption of units - Net Cash provided by (used in) Financing Activities 188,359 Net increase (decrease) in cash (335) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (335) Distribution Income Received 5,906

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

281 Sun RBC North American Value Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the RBC North RBC North American Value American Value Fund as its main investment. Please refer to note 8 in the Fund, Series O 5,836 133,792 128,094 accompanying notes to the financial statements for an explanation of the Sun Life MFS Canadian Bond various risks. Fund, Series I 4,086 57,392 55,426

Total Investments 191,184 183,520 82.61 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities 38,631 17.39 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 222,151 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

RBC North American Value Fund, Series O Brookfield Asset, Class A 1,435,847 45,294,491 62,674,722 Royal Bank of Canada 1,046,355 76,168,922 77,587,223 Suncor Energy Inc. 1,466,400 49,510,848 52,379,808 The Bank of Nova Scotia 1,062,513 67,630,966 59,468,853 The Toronto-Dominion Bank 1,555,235 78,301,361 84,355,946 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

282 Sun RBC North American Value Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun RBC North American Val Bundle - Lifetime Advantage Ser A Sun RBC North American Val Bundle - Lifetime Advantage Ser F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.68 Net asset value, end of period ($)(1) 9.75 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 221,664 Net assets(1) 487 Number of units outstanding(1) 22,902 Number of units outstanding(1) 50 Management expense ratio (%)(2) 4.02 Management expense ratio (%)(2) 2.82 Management expense ratio before waivers (%)(2) 4.17 Management expense ratio before waivers (%)(2) 2.96 Portfolio turnover rate (%)(3) 2.31 Portfolio turnover rate (%)(3) 2.31

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

283 Sun Schroder Emerging Markets

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 65,744 Cash - Receivable for investment units sold 116 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 65,860 Liabilities Current liabilities Bank indebtedness 108 Redemptions payable 1 Payable for investment units purchased 8 Payable for fees & expenses 43 160 Net Assets Attributable to Holders of Redeemable Units 65,700

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 1,453 Net realized gain (loss) on sale of investments (52) Change in unrealized appreciation (depreciation) in value of investments (2,498) (1,097) Expenses (note 5) Management fees 430 Insurance fees 65 Administration fees 165 Total operating expenses 660 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,757)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

284 Sun Schroder Emerging Markets

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,757) Holder of Redeemable Unit Transactions Proceeds from Units Issued 69,318 Redemption of Units (1,861) 67,457 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 65,700 Net Assets Attributable to Holders of Redeemable Units at end of period 65,700

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (1,757) Adjustments for: Net realized gain (loss) on sale of investments 52 Change in unrealized appreciation (depreciation) in value of investments 2,498 Purchases of investments (69,225) Proceeds from sale of investments 823 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 43 Net Cash provided by (used in) Operating Activities (67,566) Cash Flows from (used in) Financing Activities Proceeds from units issued 69,318 Redemption of units (1,860) Net Cash provided by (used in) Financing Activities 67,458 Net increase (decrease) in cash (108) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (108) Distribution Income Received 1,453

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

285 Sun Schroder Emerging Markets

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Schroder Emerging Markets Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund's investment objective is to seek Sun Life Schroder Emerging Markets capital appreciation by investing primarily in equity securities of companies Fund, Series I 7,550 68,242 65,744 with a connection to emerging markets. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the Total Investments 68,242 65,744 100.07 various risks. Other Assets less Liabilities (44) (0.07) Financial Instrument Risk of the Underlying Fund(s) Total Net Assets 65,700 100.00 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Top 25 Holdings of Underlying Fund to note 8 for an explanation of the management of the financial risks. The As at December 31, 2015 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Advanced Semiconductor Engineering Inc. 976,000 1,434,961 1,568,453 AIA Group Ltd. 432,600 2,937,888 3,613,232 Alibaba Group Holding Ltd. 14,769 1,629,730 1,667,306 Amorepacific Corp. 3,238 1,039,088 1,590,025 Cash 4,886,165 Cathay Financial Holding Co., Ltd. 984,809 1,785,487 1,928,284 Construction Bank Corporation 5,384,000 5,244,456 5,124,163 China Company Ltd. 389,000 1,490,118 1,746,549 China Mobile Ltd. 270,500 4,027,627 4,242,274 China Pacific Insurance Group Co., Ltd. 425,800 2,036,870 2,434,556 China Petroleum & Chemical Corporation 3,730,000 3,549,387 3,128,802 Emaar Properties PJSC 857,524 2,100,140 1,845,316 HDFC Bank Ltd. 47,324 2,822,549 4,049,450 Hon Hai Precision Industry Co., Ltd. 718,083 2,278,586 2,453,715 Hyundai Motor Co. 13,025 2,692,614 2,299,145 Infosys Ltd. 125,736 2,417,814 2,925,555 Itau Unibanco Holding SA, ADR 176,872 2,281,898 1,599,462 JD.com Inc. 34,927 1,320,481 1,565,405 LG Chem Ltd. 4,807 1,408,350 1,870,734 Naspers Ltd. 12,586 1,932,216 2,391,948 NHN Corp. 2,111 1,505,490 1,645,571 Samsung Electronics Co., Ltd. 4,097 5,740,320 6,115,599 Schroder International Selection Fund Frontier Markets Equity Fund, Series I 28,032 5,508,090 5,216,383 Taiwan Semiconductor Manufacturing Co., Ltd. 978,000 4,603,990 5,914,431 Tencent Holdings Ltd. 239,500 3,939,830 6,546,343

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

286 Sun Schroder Emerging Markets

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Schroder Emerging Markets - Investment Series A Sun Schroder Emerging Markets - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.11 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 64,246 Net assets(1) 497 Number of units outstanding(1) 7,053 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.52 Management expense ratio (%)(2) 3.52 Management expense ratio before waivers (%)(2) 3.52 Management expense ratio before waivers (%)(2) 3.52 Portfolio turnover rate (%)(3) 2.92 Portfolio turnover rate (%)(3) 2.92

Sun Schroder Emerging Markets - Investment Series F Sun Schroder Emerging Markets - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.18 Net asset value, end of period ($)(1) 9.97 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 459 Net assets(1) 498 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.38 Management expense ratio (%)(2) 1.27 Management expense ratio before waivers (%)(2) 2.38 Management expense ratio before waivers (%)(2) 1.27 Portfolio turnover rate (%)(3) 2.92 Portfolio turnover rate (%)(3) 2.92

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

287 Sun Sentry Conservative Balanced

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 990,821 Cash 33,962 Receivable for investment units sold 13,386 Subscriptions receivable 12,150 Distribution receivable from underlying fund - Other receivable - 1,050,319 Liabilities Current liabilities Bank indebtedness - Redemptions payable 2 Payable for investment units purchased 47,348 Payable for fees & expenses 512 47,862 Net Assets Attributable to Holders of Redeemable Units 1,002,457

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 8,928 Net realized gain (loss) on sale of investments (146) Change in unrealized appreciation (depreciation) in value of investments (7,546) 1,236 Expenses (note 5) Management fees 4,346 Insurance fees 951 Administration fees 218 Total operating expenses 5,515 Management fees waived/absorbed by the Manager (227) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (4,052)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

288 Sun Sentry Conservative Balanced

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (4,052) Holder of Redeemable Unit Transactions Proceeds from Units Issued 1,095,388 Redemption of Units (88,879) 1,006,509 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,002,457 Net Assets Attributable to Holders of Redeemable Units at end of period 1,002,457

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (4,052) Adjustments for: Net realized gain (loss) on sale of investments 146 Change in unrealized appreciation (depreciation) in value of investments 7,546 Purchases of investments (967,058) Proceeds from sale of investments 2,507 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 512 Net Cash provided by (used in) Operating Activities (960,399) Cash Flows from (used in) Financing Activities Proceeds from units issued 1,083,238 Redemption of units (88,877) Net Cash provided by (used in) Financing Activities 994,361 Net increase (decrease) in cash 33,962 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 33,962 Distribution Income Received 8,928

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

289 Sun Sentry Conservative Balanced

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Sentry Conservative Balanced Fund (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund seeks to provide stable income and Sun Life Sentry Conservative Balanced long-term capital appreciation, primarily by investing directly in a conservative Fund, Series I 106,793 998,367 990,821 diversified portfolio of Canadian fixed-income and income-oriented equity securities or indirectly by investing in mutual funds (including exchange-traded Total Investments 998,367 990,821 98.84 funds) that invest in such securities. Please refer to note 8 in the Other Assets less Liabilities 11,636 1.16 accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 1,002,457 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Algonquin Power Co. 4.65%, Feb 15, 2022 100,000 106,831 105,504 AltaGas Ltd. 6,000 246,930 185,400 AT&T Inc. 3.83%, Nov 25, 2020 100,000 106,224 106,178 Bank of Montreal 4.61%, Sep 10, 2025 100,000 119,118 115,807 Boardwalk Real Estate Investment Trust 2,900 165,168 137,605 Canadian Government Bond 1.50%, Sep 1, 2017 500,000 514,160 508,397 Canadian Government Bond 0.75%, Sep 1, 2020 300,000 298,344 300,301 Canadian Government Bond 2.25%, Jun 1, 2025 325,000 350,935 349,414 Canadian Government Bond 3.50%, Dec 1, 2045 250,000 341,101 324,241 Cash 691,861 City of Montreal 3.50%, Sep 1, 2024 100,000 105,435 106,598 IGM Financial Inc. 3,000 108,073 106,020 Medtronic PLC 1,300 118,932 138,905 Northland Power Inc. 8,900 152,733 166,074 Oracle Corp. 3,100 163,937 157,306 Province of Ontario 2.60%, Jun 2, 2025 200,000 210,034 204,455 RioCan Real Estate Investment Trust 7,200 195,661 170,567 ShawCor Ltd. 4,550 172,851 127,719 TELUS Corp. 3,300 144,162 126,258 The Bank of Nova Scotia 2.27%, Jan 13, 2020 100,000 103,130 101,567 Toyota Credit Canada Inc. 2.80%, Nov 21, 2018 100,000 105,180 103,333 TransCanada Corporation 3,400 155,793 153,646 Union Pacific Corp. 1,000 150,499 108,628 West Fraser Timber Co., Ltd. 2,400 136,118 126,072 Zimmer Biomet Holdings Inc. 1,100 155,943 156,759

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

290 Sun Sentry Conservative Balanced

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Sentry Conservative Balanced - Estate Series A Sun Sentry Conservative Balanced - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.51 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 289,803 Net assets(1) 77,893 Number of units outstanding(1) 30,474 Number of units outstanding(1) 7,773 Management expense ratio (%)(2) 2.93 Management expense ratio (%)(2) 2.93 Management expense ratio before waivers (%)(2) 3.05 Management expense ratio before waivers (%)(2) 3.05 Portfolio turnover rate (%)(3) 0.79 Portfolio turnover rate (%)(3) 0.79

Sun Sentry Conservative Balanced - Estate Series F Sun Sentry Conservative Balanced - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.59 Net asset value, end of period ($)(1) 10.05 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 479 Net assets(1) 502 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.80 Management expense ratio (%)(2) 0.79 Management expense ratio before waivers (%)(2) 1.93 Management expense ratio before waivers (%)(2) 0.79 Portfolio turnover rate (%)(3) 0.79 Portfolio turnover rate (%)(3) 0.79

Sun Sentry Conservative Balanced - Investment Series A Sun Sentry Conservative Balanced - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.53 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 556,205 Net assets(1) 501 Number of units outstanding(1) 58,343 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.60 Management expense ratio (%)(2) 2.60 Management expense ratio before waivers (%)(2) 2.71 Management expense ratio before waivers (%)(2) 2.71 Portfolio turnover rate (%)(3) 0.79 Portfolio turnover rate (%)(3) 0.79

Sun Sentry Conservative Balanced - Investment Series F Sun Sentry Conservative Balanced - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.61 Net asset value, end of period ($)(1) 10.05 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 480 Net assets(1) 502 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.47 Management expense ratio (%)(2) 0.45 Management expense ratio before waivers (%)(2) 1.58 Management expense ratio before waivers (%)(2) 0.45 Portfolio turnover rate (%)(3) 0.79 Portfolio turnover rate (%)(3) 0.79

Sun Sentry Conservative Balanced - Lifetime Advantage Ser A Sun Sentry Conservative Balanced - Lifetime Advantage Ser E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.42 Net asset value, end of period ($)(1) 10.01 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 36,197 Net assets(1) 38,918 Number of units outstanding(1) 3,841 Number of units outstanding(1) 3,889 Management expense ratio (%)(2) 4.03 Management expense ratio (%)(2) 4.03 Management expense ratio before waivers (%)(2) 4.13 Management expense ratio before waivers (%)(2) 4.13 Portfolio turnover rate (%)(3) 0.79 Portfolio turnover rate (%)(3) 0.79

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

291 Sun Sentry Conservative Balanced

Financial Highlights (Continued)

Sun Sentry Conservative Balanced - Lifetime Advantage Ser F Sun Sentry Conservative Balanced - Lifetime Advantage Ser O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.52 Net asset value, end of period ($)(1) 10.03 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 476 Net assets(1) 501 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.89 Management expense ratio (%)(2) 1.88 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 1.88 Portfolio turnover rate (%)(3) 0.79 Portfolio turnover rate (%)(3) 0.79

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

292 Sun Sentry Global Mid Cap

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 57,630 Cash - Receivable for investment units sold 91 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 57,721 Liabilities Current liabilities Bank indebtedness 91 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 32 124 Net Assets Attributable to Holders of Redeemable Units 57,597

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 2,555 Net realized gain (loss) on sale of investments (29) Change in unrealized appreciation (depreciation) in value of investments (3,366) (840) Expenses (note 5) Management fees 420 Insurance fees 64 Administration fees 66 Total operating expenses 550 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,390)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

293 Sun Sentry Global Mid Cap

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,390) Holder of Redeemable Unit Transactions Proceeds from Units Issued 58,988 Redemption of Units (1) 58,987 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 57,597 Net Assets Attributable to Holders of Redeemable Units at end of period 57,597

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (1,390) Adjustments for: Net realized gain (loss) on sale of investments 29 Change in unrealized appreciation (depreciation) in value of investments 3,366 Purchases of investments (61,543) Proceeds from sale of investments 427 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 32 Net Cash provided by (used in) Operating Activities (59,079) Cash Flows from (used in) Financing Activities Proceeds from units issued 58,988 Redemption of units - Net Cash provided by (used in) Financing Activities 58,988 Net increase (decrease) in cash (91) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (91) Distribution Income Received 2,555

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

294 Sun Sentry Global Mid Cap

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Sentry Global Mid Cap Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to achieve long-term capital appreciation Sun Life Sentry Global Mid Cap primarily by investing in a diversified portfolio of medium capitalization Global Fund, Series I 5,972 60,996 57,630 companies or indirectly by investing in mutual funds (including exchange- traded funds) that invest in such securities. Please refer to note 8 in the Total Investments 60,996 57,630 100.06 accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities (33) (0.06) various risks. Total Net Assets 57,597 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) AltaGas Ltd. 25,647 1,061,299 792,492 Aryzta AG 15,100 1,015,490 1,068,678 Ashtead Group PLC 31,997 658,004 733,056 Brenntag AG 10,000 705,286 728,535 Britvic PLC 52,600 718,132 783,459 Cash 2,086,284 Cinemark Holdings Inc. 19,700 986,679 914,822 Cineworld Group PLC 80,000 876,126 921,319 Crown Holdings Inc. 13,000 888,146 915,557 Diploma PLC 60,270 898,795 939,038 Dufry AG 4,634 830,252 771,680 Inchcape PLC 49,420 752,980 794,273 Indus Holding AG 13,800 849,718 926,872 Jarden Corp. 10,000 616,447 793,455 Jyske Bank A/S 11,000 685,785 694,187 Legal & General Group PLC 130,000 711,658 712,774 London Stock Exchange Group PLC 14,600 678,908 820,228 Omnicom Group Inc. 6,700 654,189 704,166 Sthree PLC 115,502 840,136 770,912 Sunrise Communications AG 8,590 920,335 704,499 Temenos Group AG 13,000 724,194 937,192 Travis Perkins PLC 19,800 799,064 799,816 UOL Group Ltd. 144,317 957,045 881,783 Valeo SA 3,550 692,647 763,622 Zimmer Biomet Holdings Inc. 5,000 710,674 712,539

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

295 Sun Sentry Global Mid Cap

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Sentry Global Mid Cap - Investment Series A Sun Sentry Global Mid Cap - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.55 Net asset value, end of period ($)(1) 10.06 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 56,109 Net assets(1) 503 Number of units outstanding(1) 5,874 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.95 Management expense ratio (%)(2) 2.95 Management expense ratio before waivers (%)(2) 2.95 Management expense ratio before waivers (%)(2) 2.95 Portfolio turnover rate (%)(3) 1.55 Portfolio turnover rate (%)(3) 1.55

Sun Sentry Global Mid Cap - Investment Series F Sun Sentry Global Mid Cap - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.63 Net asset value, end of period ($)(1) 10.10 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 481 Net assets(1) 504 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.88 Management expense ratio (%)(2) 0.77 Management expense ratio before waivers (%)(2) 1.88 Management expense ratio before waivers (%)(2) 0.77 Portfolio turnover rate (%)(3) 1.55 Portfolio turnover rate (%)(3) 1.55

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

296 Sun Sentry Infrastructure

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,954,758 Cash 11,247 Receivable for investment units sold 14,843 Subscriptions receivable 11,644 Distribution receivable from underlying fund - Other receivable - 1,992,492 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased 26,074 Payable for fees & expenses 1,167 27,242 Net Assets Attributable to Holders of Redeemable Units 1,965,250

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 32,783 Net realized gain (loss) on sale of investments (1,499) Change in unrealized appreciation (depreciation) in value of investments (99,444) (68,160) Expenses (note 5) Management fees 12,667 Insurance fees 3,270 Administration fees 2,004 Total operating expenses 17,941 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (86,101)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

297 Sun Sentry Infrastructure

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (86,101) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,227,266 Redemption of Units (175,915) 2,051,351 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,965,250 Net Assets Attributable to Holders of Redeemable Units at end of period 1,965,250

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (86,101) Adjustments for: Net realized gain (loss) on sale of investments 1,499 Change in unrealized appreciation (depreciation) in value of investments 99,444 Purchases of investments (2,147,367) Proceeds from sale of investments 102,897 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1,167 Net Cash provided by (used in) Operating Activities (2,028,461) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,215,622 Redemption of units (175,914) Net Cash provided by (used in) Financing Activities 2,039,708 Net increase (decrease) in cash 11,247 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 11,247 Distribution Income Received 32,783

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

298 Sun Sentry Infrastructure

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Sentry Infrastructure Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to provide regular current income primarily Sun Life Sentry Infrastructure by investing directly in global companies with either direct or indirect Fund, Series I 214,741 2,054,202 1,954,758 exposure to infrastructure or indirectly by investing in mutual funds (including exchange-traded funds) that invest in such securities. Please refer to note 8 in Total Investments 2,054,202 1,954,758 99.47 the accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities 10,492 0.53 various risks. Total Net Assets 1,965,250 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Algonquin Power & Utilities Corp. 354,900 3,455,192 3,871,960 Alphabet Inc., Class A 3,050 2,082,437 3,296,240 American Tower Corp. 50,800 6,261,140 6,841,406 Atlantia SpA 139,600 4,654,491 5,161,008 Brookfield Asset Management Inc., Class A 104,750 4,625,687 4,572,338 Brookfield Infrastructure Partners LP 60,300 3,196,099 3,175,448 Canadian National Railway Co. 49,250 3,687,686 3,809,488 Cash 14,562,637 Comcast Corp. 71,600 5,253,520 5,612,507 Conundrum Solar Partners Corp. 1,428,571 2,999,999 2,999,999 Crown Castle International Corp. 47,200 5,166,070 5,668,144 CSX Corp. 118,100 4,660,684 4,257,171 Enbridge Inc. 97,400 5,590,956 4,480,400 Exelon Corp. 76,900 3,095,657 2,966,443 Ferrovial SA 155,301 4,116,111 4,887,283 Groupe Eurotunnel SA 201,000 3,540,691 3,475,871 Iliad SA 13,450 3,935,801 4,465,067 Macquarie Infrastructure Co., LLC 70,750 6,889,092 7,135,048 NextEra Energy Inc. 25,500 3,464,248 3,680,000 SBA Communications Corp. 35,100 5,127,484 5,122,945 Sempra Energy 35,000 4,557,306 4,570,629 Societa Iniziative Autostradali e Servizi SpA 323,085 4,354,566 4,777,777 Sunrise Communications AG 41,000 3,876,285 3,362,568 Union Pacific Corp. 39,800 5,077,934 4,323,383 Vinci SA 54,400 3,870,173 4,854,710

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

299 Sun Sentry Infrastructure

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Sentry Infrastructure - Estate Series A Sun Sentry Infrastructure - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.05 Net asset value, end of period ($)(1) 9.70 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 850,781 Net assets(1) 51,581 Number of units outstanding(1) 93,980 Number of units outstanding(1) 5,319 Management expense ratio (%)(2) 3.49 Management expense ratio (%)(2) 3.49 Management expense ratio before waivers (%)(2) 3.49 Management expense ratio before waivers (%)(2) 3.49 Portfolio turnover rate (%)(3) 11.98 Portfolio turnover rate (%)(3) 11.98

Sun Sentry Infrastructure - Estate Series F Sun Sentry Infrastructure - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.12 Net asset value, end of period ($)(1) 9.72 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 74,208 Net assets(1) 486 Number of units outstanding(1) 8,137 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.39 Management expense ratio (%)(2) 1.26 Management expense ratio before waivers (%)(2) 2.39 Management expense ratio before waivers (%)(2) 1.26 Portfolio turnover rate (%)(3) 11.98 Portfolio turnover rate (%)(3) 11.98

Sun Sentry Infrastructure - Investment Series A Sun Sentry Infrastructure - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.07 Net asset value, end of period ($)(1) 9.70 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 986,766 Net assets(1) 485 Number of units outstanding(1) 108,763 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.95 Management expense ratio (%)(2) 2.95 Management expense ratio before waivers (%)(2) 2.95 Management expense ratio before waivers (%)(2) 2.95 Portfolio turnover rate (%)(3) 11.98 Portfolio turnover rate (%)(3) 11.98

Sun Sentry Infrastructure - Investment Series F Sun Sentry Infrastructure - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.14 Net asset value, end of period ($)(1) 9.73 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 457 Net assets(1) 486 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.87 Management expense ratio (%)(2) 0.76 Management expense ratio before waivers (%)(2) 1.87 Management expense ratio before waivers (%)(2) 0.76 Portfolio turnover rate (%)(3) 11.98 Portfolio turnover rate (%)(3) 11.98

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

300 Sun Sentry Value

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 2,606,696 Cash 5,501 Receivable for investment units sold 4,064 Subscriptions receivable 12,874 Distribution receivable from underlying fund - Other receivable 36 2,629,171 Liabilities Current liabilities Bank indebtedness - Redemptions payable 251 Payable for investment units purchased 9,552 Payable for fees & expenses 1,456 11,259 Net Assets Attributable to Holders of Redeemable Units 2,617,912

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 47,924 Net realized gain (loss) on sale of investments (2,299) Change in unrealized appreciation (depreciation) in value of investments (59,703) (14,078) Expenses (note 5) Management fees 12,355 Insurance fees 2,315 Administration fees 792 Total operating expenses 15,462 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (29,540)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

301 Sun Sentry Value

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (29,540) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,859,747 Redemption of Units (212,295) 2,647,452 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 2,617,912 Net Assets Attributable to Holders of Redeemable Units at end of period 2,617,912

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (29,540) Adjustments for: Net realized gain (loss) on sale of investments 2,299 Change in unrealized appreciation (depreciation) in value of investments 59,703 Purchases of investments (2,783,416) Proceeds from sale of investments 120,206 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable (36) Increase (decrease) in fees & expenses payable 1,456 Net Cash provided by (used in) Operating Activities (2,629,328) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,846,873 Redemption of units (212,044) Net Cash provided by (used in) Financing Activities 2,634,829 Net increase (decrease) in cash 5,501 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 5,501 Distribution Income Received 47,924

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

302 Sun Sentry Value

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Sentry Value Class (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets underlying fund’s investment objective is to seek to achieve long-term capital Sun Life Sentry Value Class, Series I 270,317 2,666,399 2,606,696 appreciation through exposure to primarily equity securities of Canadian and U.S. companies by investing primarily in units of the Sun Life Sentry Value Fund Total Investments 2,666,399 2,606,696 99.57 or its successor fund (the "underlying trust fund"). The underlying fund may Other Assets less Liabilities 11,216 0.43 invest in U.S. and other foreign securities in an amount not exceeding 49% of the assets of the underlying trust fund. Please refer to note 8 in the Total Net Assets 2,617,912 100.00 accompanying notes to the financial statements for an explanation of the various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Trust Fund As at December 31, 2015 The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Number of Average Fair to note 8 for an explanation of the management of the financial risks. The Investment Shares Cost ($) Value ($) detailed risk analyses of the underlying fund(s) are disclosed in the financial Aecon Group Inc. 72,200 945,739 1,111,158 statements of the underlying fund(s). AGT Food & Ingredients Inc. 48,500 1,216,704 1,648,515 AltaGas Ltd. 69,600 2,286,588 2,150,640 Canadian National Railway Co. 11,000 784,606 850,850 Cash 7,686,133 Chemtrade Logistics Income Fund 54,800 1,083,756 978,728 CI Financial Corp. 49,900 1,551,294 1,526,940 Cinemark Holdings Inc. 19,650 792,640 912,500 Comcast Corp. 15,300 1,020,573 1,199,321 CVS Caremark Corp. 11,500 1,325,203 1,561,843 EnerCare Inc. 108,600 1,530,301 1,733,256 Fortis Inc. 22,700 830,367 849,207 Industrial Alliance Insurance & Financial Services Inc. 21,300 903,543 939,969 Magna International Inc. 22,800 1,355,809 1,279,536 McKesson Corp. 5,300 1,413,269 1,452,054 Morneau Shepell Inc. 142,400 2,069,604 2,061,952 Oracle Corp. 37,800 1,702,875 1,918,118 Quebecor Inc., Class B 26,600 819,225 901,208 Republic Services Inc. 27,600 1,188,926 1,686,541 Inc., Class B 46,600 1,292,581 1,109,080 ShawCor Ltd. 70,600 2,798,564 1,981,742 The Jean Coutu Group PJC Inc., Class A 56,500 1,145,753 1,011,915 TransCanada Corporation 26,100 1,352,440 1,179,459 TransForce Inc. 38,300 1,003,105 904,263 West Fraser Timber Co., Ltd. 17,500 869,286 919,275

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

303 Sun Sentry Value

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Sentry Value - Estate Series A Sun Sentry Value - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.48 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 672,744 Net assets(1) 243,496 Number of units outstanding(1) 70,993 Number of units outstanding(1) 24,576 Management expense ratio (%)(2) 3.24 Management expense ratio (%)(2) 3.24 Management expense ratio before waivers (%)(2) 3.24 Management expense ratio before waivers (%)(2) 3.24 Portfolio turnover rate (%)(3) 13.66 Portfolio turnover rate (%)(3) 13.66

Sun Sentry Value - Estate Series F Sun Sentry Value - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.57 Net asset value, end of period ($)(1) 9.93 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 478 Net assets(1) 496 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.10 Management expense ratio (%)(2) 0.96 Management expense ratio before waivers (%)(2) 2.10 Management expense ratio before waivers (%)(2) 0.96 Portfolio turnover rate (%)(3) 13.66 Portfolio turnover rate (%)(3) 13.66

Sun Sentry Value - Investment Series A Sun Sentry Value - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.52 Net asset value, end of period ($)(1) 9.91 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,699,227 Net assets(1) 495 Number of units outstanding(1) 178,562 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.80 Management expense ratio (%)(2) 2.80 Management expense ratio before waivers (%)(2) 2.80 Management expense ratio before waivers (%)(2) 2.80 Portfolio turnover rate (%)(3) 13.66 Portfolio turnover rate (%)(3) 13.66

Sun Sentry Value - Investment Series F Sun Sentry Value - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.60 Net asset value, end of period ($)(1) 9.94 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 480 Net assets(1) 496 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.67 Management expense ratio (%)(2) 0.54 Management expense ratio before waivers (%)(2) 1.67 Management expense ratio before waivers (%)(2) 0.54 Portfolio turnover rate (%)(3) 13.66 Portfolio turnover rate (%)(3) 13.66

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

304 Sun Sentry Value Bundle

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 317,471 Cash 28,730 Receivable for investment units sold - Subscriptions receivable 1 Distribution receivable from underlying fund - Other receivable - 346,202 Liabilities Current liabilities Bank indebtedness - Redemptions payable 17 Payable for investment units purchased 28,731 Payable for fees & expenses 211 28,959 Net Assets Attributable to Holders of Redeemable Units 317,243

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 5,843 Net realized gain (loss) on sale of investments (35) Change in unrealized appreciation (depreciation) in value of investments (5,443) 365 Expenses (note 5) Management fees 1,331 Insurance fees 1,014 Administration fees 66 Total operating expenses 2,411 Management fees waived/absorbed by the Manager (60) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,986)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

305 Sun Sentry Value Bundle

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (1,986) Holder of Redeemable Unit Transactions Proceeds from Units Issued 319,246 Redemption of Units (17) 319,229 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 317,243 Net Assets Attributable to Holders of Redeemable Units at end of period 317,243

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (1,986) Adjustments for: Net realized gain (loss) on sale of investments 35 Change in unrealized appreciation (depreciation) in value of investments 5,443 Purchases of investments (295,993) Proceeds from sale of investments 1,775 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 211 Net Cash provided by (used in) Operating Activities (290,515) Cash Flows from (used in) Financing Activities Proceeds from units issued 319,245 Redemption of units - Net Cash provided by (used in) Financing Activities 319,245 Net increase (decrease) in cash 28,730 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 28,730 Distribution Income Received 5,843

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

306 Sun Sentry Value Bundle

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The objective of this fund is to provide growth and interest income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including the Sun Life Sentry Sun Life Sentry Value Class, Series I 23,040 225,653 222,179 Value Class as its main investment. Please refer to note 8 in the accompanying Sun Life MFS Canadian Bond notes to the financial statements for an explanation of the various risks. Fund, Series I 7,024 97,261 95,292

Total Investments 322,914 317,471 100.07 Financial Instrument Risk of the Underlying Fund(s)

Other Assets less Liabilities (228) (0.07) The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Total Net Assets 317,243 100.00 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

Sun Life Sentry Value Class, Series I AltaGas Ltd. 69,600 2,286,588 2,150,640 Cash 7,686,133 Morneau Shepell Inc. 142,400 2,069,604 2,061,952 Oracle Corp. 37,800 1,702,875 1,918,118 ShawCor Ltd. 70,600 2,798,564 1,981,742 Sun Life MFS Canadian Bond Fund, Series I Canada Housing Trust No. 1 2.05%, Jun 15, 2017 6,250,000 6,413,173 6,378,634 Canadian Treasury Bill 0.49%, Mar 24, 2016 3,000,000 2,996,610 2,996,610 Province of Alberta 4.00%, Dec 1, 2019 2,635,000 2,938,130 2,913,129 Province of Ontario 4.00%, Jun 2, 2021 3,280,000 3,662,373 3,692,340 Province of Ontario 4.70%, Jun 2, 2037 2,785,000 3,402,659 3,440,212

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

307 Sun Sentry Value Bundle

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Sentry Value Bundle - Lifetime Advantage Series A Sun Sentry Value Bundle - Lifetime Advantage Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.62 Net asset value, end of period ($)(1) 9.98 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 203,770 Net assets(1) 100,927 Number of units outstanding(1) 21,171 Number of units outstanding(1) 10,117 Management expense ratio (%)(2) 3.95 Management expense ratio (%)(2) 3.95 Management expense ratio before waivers (%)(2) 4.05 Management expense ratio before waivers (%)(2) 4.05 Portfolio turnover rate (%)(3) 1.86 Portfolio turnover rate (%)(3) 1.86

Sun Sentry Value Bundle - Lifetime Advantage Series F Sun Sentry Value Bundle - Lifetime Advantage Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.70 Net asset value, end of period ($)(1) 10.00 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 485 Net assets(1) 12,061 Number of units outstanding(1) 50 Number of units outstanding(1) 1,205 Management expense ratio (%)(2) 2.88 Management expense ratio (%)(2) 1.86 Management expense ratio before waivers (%)(2) 2.98 Management expense ratio before waivers (%)(2) 1.86 Portfolio turnover rate (%)(3) 1.86 Portfolio turnover rate (%)(3) 1.86

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

308 Sun Sionna Canadian Small Cap Equity

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 86,994 Cash 71 Receivable for investment units sold 131 Subscriptions receivable 100 Distribution receivable from underlying fund - Other receivable - 87,296 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 54 55 Net Assets Attributable to Holders of Redeemable Units 87,241

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 994 Net realized gain (loss) on sale of investments (241) Change in unrealized appreciation (depreciation) in value of investments (8,648) (7,895) Expenses (note 5) Management fees 635 Insurance fees 221 Administration fees 97 Total operating expenses 953 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (8,848)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

309 Sun Sionna Canadian Small Cap Equity

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (8,848) Holder of Redeemable Unit Transactions Proceeds from Units Issued 96,090 Redemption of Units (1) 96,089 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 87,241 Net Assets Attributable to Holders of Redeemable Units at end of period 87,241

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (8,848) Adjustments for: Net realized gain (loss) on sale of investments 241 Change in unrealized appreciation (depreciation) in value of investments 8,648 Purchases of investments (100,832) Proceeds from sale of investments 4,818 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 54 Net Cash provided by (used in) Operating Activities (95,919) Cash Flows from (used in) Financing Activities Proceeds from units issued 95,990 Redemption of units - Net Cash provided by (used in) Financing Activities 95,990 Net increase (decrease) in cash 71 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 71 Distribution Income Received 994

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

310 Sun Sionna Canadian Small Cap Equity

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Sionna Canadian Small Cap Equity Class (the Investment Shares Cost ($) Value ($) Net Assets "underlying fund"). The underlying fund seeks to achieve long-term capital Sun Life Sionna Canadian Small Cap appreciation through exposure to primarily equity securities of small to Equity Class, Series I 10,272 95,642 86,994 medium capitalization Canadian companies by tracking the performance of the Sionna Canadian Small Cap Equity Fund or its successor fund (the Total Investments 95,642 86,994 99.72 “underlying trust fund”). In seeking to track the performance of the underlying Other Assets less Liabilities 247 0.28 trust fund, the portfolio manager may invest primarily in units of the underlying trust fund, or it may invest in securities, which may include Total Net Assets 87,241 100.00 securities of other mutual funds (including exchange-traded funds), identical or substantially similar to those in which the underlying trust fund invests. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the various risks. Top 25 Holdings of Underlying Fund As at December 31, 2015 Financial Instrument Risk of the Underlying Fund(s) The Fund is indirectly exposed to currency risk, interest rate risk, other market Number of Average Fair risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Investment Shares Cost ($) Value ($) to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Sionna Canadian Small Cap Equity to note 8 for an explanation of the management of the financial risks. The Fund, Class A 1,603,921 26,641,934 22,341,335 detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s).

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

311 Sun Sionna Canadian Small Cap Equity

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Sionna Canadian Small Cap Equity - Estate Series A Sun Sionna Canadian Small Cap Equity - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.33 Net asset value, end of period ($)(1) 9.58 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 44,932 Net assets(1) 479 Number of units outstanding(1) 5,394 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.59 Management expense ratio (%)(2) 3.57 Management expense ratio before waivers (%)(2) 3.59 Management expense ratio before waivers (%)(2) 3.57 Portfolio turnover rate (%)(3) 11.51 Portfolio turnover rate (%)(3) 11.51

Sun Sionna Canadian Small Cap Equity - Estate Series F Sun Sionna Canadian Small Cap Equity - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.39 Net asset value, end of period ($)(1) 9.61 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 420 Net assets(1) 479 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.44 Management expense ratio (%)(2) 1.30 Management expense ratio before waivers (%)(2) 2.44 Management expense ratio before waivers (%)(2) 1.30 Portfolio turnover rate (%)(3) 11.51 Portfolio turnover rate (%)(3) 11.51

Sun Sionna Canadian Small Cap Equity - Investment Series A Sun Sionna Canadian Small Cap Equity - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.36 Net asset value, end of period ($)(1) 9.59 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 39,550 Net assets(1) 480 Number of units outstanding(1) 4,731 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.01 Management expense ratio (%)(2) 3.01 Management expense ratio before waivers (%)(2) 3.01 Management expense ratio before waivers (%)(2) 3.01 Portfolio turnover rate (%)(3) 11.51 Portfolio turnover rate (%)(3) 11.51

Sun Sionna Canadian Small Cap Equity - Investment Series F Sun Sionna Canadian Small Cap Equity - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 8.42 Net asset value, end of period ($)(1) 9.62 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 421 Net assets(1) 480 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.88 Management expense ratio (%)(2) 0.75 Management expense ratio before waivers (%)(2) 1.88 Management expense ratio before waivers (%)(2) 0.75 Portfolio turnover rate (%)(3) 11.51 Portfolio turnover rate (%)(3) 11.51

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

312 Sun Strategic Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 27,637,704 Cash 719,694 Receivable for investment units sold 20,400 Subscriptions receivable 585,395 Distribution receivable from underlying fund - Other receivable 328 28,963,521 Liabilities Current liabilities Bank indebtedness - Redemptions payable 28,454 Payable for investment units purchased 1,067,166 Payable for fees & expenses 14,213 1,109,833 Net Assets Attributable to Holders of Redeemable Units 27,853,688

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 897,983 Net realized gain (loss) on sale of investments (1,992) Change in unrealized appreciation (depreciation) in value of investments (841,035) 54,956 Expenses (note 5) Management fees 117,694 Insurance fees 59,161 Administration fees 18,143 Total operating expenses 194,998 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (140,042)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

313 Sun Strategic Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (140,042) Holder of Redeemable Unit Transactions Proceeds from Units Issued 28,664,975 Redemption of Units (671,245) 27,993,730 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 27,853,688 Net Assets Attributable to Holders of Redeemable Units at end of period 27,853,688

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (140,042) Adjustments for: Net realized gain (loss) on sale of investments 1,992 Change in unrealized appreciation (depreciation) in value of investments 841,035 Purchases of investments (27,532,514) Proceeds from sale of investments 98,549 (Increase) decrease in distribution receivable (Increase) decrease in other receivable (328) Increase (decrease) in fees & expenses payable 14,213 Net Cash provided by (used in) Operating Activities (26,717,095) Cash Flows from (used in) Financing Activities Proceeds from units issued 28,079,580 Redemption of units (642,791) Net Cash provided by (used in) Financing Activities 27,436,789 Net increase (decrease) in cash 719,694 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 719,694 Distribution Income Received 897,983

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

314 Sun Strategic Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total This fund seeks to preserve capital and provide sustainable income by Investment Shares Cost ($) Value ($) Net Assets investing in a bundle of underlying mutual funds including MFS Canadian Fixed MFS Canadian Fund 250,336 14,300,832 13,857,999 Income Fund as its main investment. Please refer to note 8 in the MFS Canadian Long Term Fixed accompanying notes to the financial statements for an explanation of the Income Fund 907,841 9,957,042 9,717,807 various risks. RBC Global High Yield Bond Fund, Series O 404,044 4,220,865 4,061,898 Financial Instrument Risk of the Underlying Fund(s) Total Investments 28,478,739 27,637,704 99.22 The Fund is indirectly exposed to currency risk, interest rate risk, other market Other Assets less Liabilities 215,984 0.78 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer Total Net Assets 27,853,688 100.00 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Top 5 Holdings of each of the Underlying Funds As at December 31, 2015

Number of Average Fair Investment Shares Cost ($) Value ($)

MFS Canadian Fixed Income Fund Canada Housing Trust No.1 1.70%, Dec 15, 2017 175,575,000 178,970,621 179,109,258 Canada Housing Trust No.1 1.75%, Jun 15, 2018 54,105,000 55,357,531 55,401,510 Canada Housing Trust No.1 3.75%, Mar 15, 2020 45,595,000 50,478,680 50,985,987 Canadian Government Bond 0.25%, Nov 1, 2017 122,910,000 122,402,382 122,453,735 Province of Ontario 4.70%, Jun 2, 2037 50,940,000 62,889,505 63,085,749 MFS Canadian Long Term Fixed Income Fund Canadian Government Bond 2.25%, Jun 1, 2025 16,465,000 17,696,582 17,728,046 Province of Manitoba 4.05%, Sep 5, 2045 15,895,000 17,942,276 18,150,392 Province of Ontario, 4.70%, Jun 2 2037 15,675,000 19,352,042 19,412,429 Province of Ontario 3.45%, Jun 2, 2045 45,396,000 47,454,255 47,582,629 Province of Quebec 3.50%, Dec 1, 2045 15,620,000 16,370,697 16,417,129 RBC Global High Yield Bond Fund, Series O BlueBay Emerging Markets Corporate Bond Fund, Series O 10,907,443 116,573,279 124,568,519 Republic of Croatia 6.75%, Nov 5, 2019 22,275,000 28,863,270 33,074,075 Republic of Hungary 6.25%, Jan 29, 2020 19,860,000 28,858,790 30,755,932 Republic of Philippines 7.75%, Jan 14, 2031 15,181,000 24,050,316 29,565,979 United States Treasury 2.50%, May 15, 2024 19,375,000 24,766,338 27,403,494

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

315 Sun Strategic Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Strategic Income - Income Series A Sun Strategic Income - Income Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.74 Net asset value, end of period ($)(1) 9.77 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 27,403,326 Net assets(1) 450,362 Number of units outstanding(1) 2,814,763 Number of units outstanding(1) 46,078 Management expense ratio (%)(2) 2.78 Management expense ratio (%)(2) 2.24 Management expense ratio before waivers (%)(2) 2.78 Management expense ratio before waivers (%)(2) 2.24 Portfolio turnover rate (%)(3) 0.91 Portfolio turnover rate (%)(3) 0.91

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

316 Sun TD Canadian Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 1,630,791 Cash - Receivable for investment units sold 4,153 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 1,634,944 Liabilities Current liabilities Bank indebtedness 3,895 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 691 4,586 Net Assets Attributable to Holders of Redeemable Units 1,630,358

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 30,205 Net realized gain (loss) on sale of investments (15,092) Change in unrealized appreciation (depreciation) in value of investments (10,268) 4,845 Expenses (note 5) Management fees 9,899 Insurance fees 1,525 Administration fees 1,573 Total operating expenses 12,997 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (8,152)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

317 Sun TD Canadian Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (8,152) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,719,962 Redemption of Units (1,081,452) 1,638,510 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 1,630,358 Net Assets Attributable to Holders of Redeemable Units at end of period 1,630,358

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (8,152) Adjustments for: Net realized gain (loss) on sale of investments 15,092 Change in unrealized appreciation (depreciation) in value of investments 10,268 Purchases of investments (2,833,985) Proceeds from sale of investments 1,173,681 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 691 Net Cash provided by (used in) Operating Activities (1,642,405) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,719,962 Redemption of units (1,081,452) Net Cash provided by (used in) Financing Activities 1,638,510 Net increase (decrease) in cash (3,895) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (3,895) Distribution Income Received 30,205

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

318 Sun TD Canadian Bond

Schedule of Investment Portfolio As at December 31, 2015 Top 25 Holdings of Underlying Fund (continued) As at December 31, 2015 Number of Average Fair % of Total Number of Average Fair Investment Shares Cost ($) Value ($) Net Assets Investment Shares Cost ($) Value ($) TD Canadian Bond Fund, Series O 148,931 1,641,059 1,630,791 The Toronto-Dominion Bank, Callable 4.78%, Dec 14, 2105 200,000,000 199,489,815 205,398,598 Total Investments 1,641,059 1,630,791 100.03 The Toronto-Dominion Bank, Callable 5.76%, Dec 18, 2106 110,000,000 109,933,400 117,891,498 Other Assets less Liabilities (433) (0.03) Wells Fargo Financial Canada Corporation Total Net Assets 1,630,358 100.00 2.77%, Feb 9, 2017 107,392,000 107,952,398 109,258,657

Top 25 Holdings of Underlying Fund Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair Investment Shares Cost ($) Value ($) The Fund invests in the TD Canadian Bond Fund (the "underlying fund"). The Bank of Montreal fundamental investment objective of the underlying fund is to earn a high rate 0.45%, Jan 4, 2016 375,600,000 375,600,000 375,600,000 of interest income through investments in high-quality bonds and debentures Canada Housing Trust No.1 issued principally by Canadian borrowers in Canadian dollars. These securities 3.75%, Mar 15, 2020 97,500,000 102,779,175 107,989,019 may consist of debt obligations of, or guaranteed by, Canadian federal, Canada Housing Trust No.1 provincial or municipal governments, Canadian chartered banks, Canadian loan 3.80%, Jun 15, 2021 110,700,000 122,878,104 124,800,612 or trust companies or Canadian corporations. Please refer to note 8 in the CIBC Capital Trust, Callable accompanying notes to the financial statements for an explanation of the 9.98%, Jun 30, 2019 90,000,000 112,939,745 111,159,365 various risks. Government of Canada 3.50%, Jun 1, 2020 148,800,000 159,995,004 167,090,838 Government of Canada Financial Instrument Risk of the Underlying Fund(s) 2.75%, Jun 1, 2022 102,800,000 107,983,264 113,741,138 Government of Canada The Fund is indirectly exposed to currency risk, interest rate risk, other market 5.75%, Jun 1, 2033 120,000,000 173,341,200 185,564,717 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Government of Canada to the extent the underlying fund(s) is (are) exposed to these risks. Please refer 5.00%, Jun 1, 2037 324,630,000 441,881,289 484,302,291 to note 8 for an explanation of the management of the financial risks. The Government of Canada detailed risk analyses of the underlying fund(s) are disclosed in the financial 4.00%, Jun 1, 2041 338,700,000 423,800,426 460,110,436 statements of the underlying fund(s). Government of Canada 3.50%, Dec 1, 2045 135,499,000 171,015,128 175,737,236 Government of Canada 1.25%, Dec 1, 2047 107,000,000 122,828,408 129,155,132 Province of British Columbia 4.30%, Jun 18, 2042 160,000,000 171,383,160 194,343,885 Province of Manitoba 4.25%, Mar 5, 2039 100,000,000 99,623,000 112,078,000 Province of Manitoba 4.10%, Mar 5, 2041 102,800,000 119,526,942 115,450,330 Province of New Brunswick 4.80%, Jun 3, 2041 90,000,000 114,851,510 110,053,392 Province of Ontario 6.20%, Jun 2, 2031 90,000,000 117,262,500 126,271,851 Province of Ontario 5.85%, Mar 8, 2033 80,000,000 98,899,700 109,957,560 Province of Ontario 5.60%, Jun 2, 2035 190,700,000 237,775,272 259,254,644 Province of Ontario 4.70%, Jun 2, 2037 88,000,000 103,651,405 108,703,273 Province of Ontario 4.65%, Jun 2, 2041 104,000,000 127,009,470 129,758,001 Province of Ontario Residual 2.81%, Jun 2, 2027 327,600,000 211,901,885 238,659,309 TD Capital Trust III, Callable 7.24%, Dec 31, 2018 105,800,000 120,501,556 120,949,595

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

319 Sun TD Canadian Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun TD Canadian Bond - Estate Series A Sun TD Canadian Bond - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.99 Net asset value, end of period ($)(1) 10.02 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 343,949 Net assets(1) 501 Number of units outstanding(1) 34,437 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.31 Management expense ratio (%)(2) 1.74 Management expense ratio before waivers (%)(2) 2.31 Management expense ratio before waivers (%)(2) 1.74 Portfolio turnover rate (%)(3) 133.38 Portfolio turnover rate (%)(3) 133.38

Sun TD Canadian Bond - Investment Series A Sun TD Canadian Bond - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.99 Net asset value, end of period ($)(1) 10.03 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,222,440 Net assets(1) 501 Number of units outstanding(1) 122,413 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.14 Management expense ratio (%)(2) 1.57 Management expense ratio before waivers (%)(2) 2.14 Management expense ratio before waivers (%)(2) 1.57 Portfolio turnover rate (%)(3) 133.38 Portfolio turnover rate (%)(3) 133.38

Sun TD Canadian Bond - Lifetime Advantage Series A Sun TD Canadian Bond - Lifetime Advantage Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.21 Net asset value, end of period ($)(1) 9.97 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 62,468 Net assets(1) 499 Number of units outstanding(1) 6,119 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.02 Management expense ratio (%)(2) 2.45 Management expense ratio before waivers (%)(2) 3.02 Management expense ratio before waivers (%)(2) 2.45 Portfolio turnover rate (%)(3) 133.38 Portfolio turnover rate (%)(3) 133.38

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

320 Sun TD Dividend Income

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 2,404,196 Cash - Receivable for investment units sold 3,456 Subscriptions receivable 77,545 Distribution receivable from underlying fund - Other receivable - 2,485,197 Liabilities Current liabilities Bank indebtedness 3,327 Redemptions payable 500 Payable for investment units purchased 100 Payable for fees & expenses 1,442 5,369 Net Assets Attributable to Holders of Redeemable Units 2,479,828

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 27,366 Net realized gain (loss) on sale of investments 2,220 Change in unrealized appreciation (depreciation) in value of investments (36,052) (6,466) Expenses (note 5) Management fees 14,679 Insurance fees 5,489 Administration fees 920 Total operating expenses 21,088 Management fees waived/absorbed by the Manager (19) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (27,535)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

321 Sun TD Dividend Income

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (27,535) Holder of Redeemable Unit Transactions Proceeds from Units Issued 2,730,843 Redemption of Units (223,480) 2,507,363 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 2,479,828 Net Assets Attributable to Holders of Redeemable Units at end of period 2,479,828

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (27,535) Adjustments for: Net realized gain (loss) on sale of investments (2,220) Change in unrealized appreciation (depreciation) in value of investments 36,052 Purchases of investments (2,540,041) Proceeds from sale of investments 98,657 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 1,442 Net Cash provided by (used in) Operating Activities (2,433,645) Cash Flows from (used in) Financing Activities Proceeds from units issued 2,653,298 Redemption of units (222,980) Net Cash provided by (used in) Financing Activities 2,430,318 Net increase (decrease) in cash (3,327) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (3,327) Distribution Income Received 27,366

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

322 Sun TD Dividend Income

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the TD Dividend Income Fund (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets fundamental investment objective of the underlying fund is to seek to provide TD Dividend Income Fund, Series O 187,097 2,440,248 2,404,196 income with capital appreciation as a secondary objective, by investing primarily in income-producing securities. Please refer to note 8 in the Total Investments 2,440,248 2,404,196 96.95 accompanying notes to the financial statements for an explanation of the Other Assets less Liabilities 75,632 3.05 various risks. Total Net Assets 2,479,828 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) ATCO Ltd. 810,500 15,290,892 28,934,850 Bank of Montreal 3,521,300 189,086,258 267,107,104 BCE Inc. 2,426,158 69,773,414 100,216,193 Brookfield Asset Management Inc. 3,825,075 60,673,496 139,502,334 Brookfield Infrastructure Partners L.P. 910,400 13,085,545 47,686,752 Canadian Imperial Bank of Commerce 2,709,500 191,016,894 247,079,305 Canadian National Railway Company 1,553,100 50,497,048 120,132,285 Canadian Oil Sands Limited 3,737,794 62,586,896 30,911,556 Canadian Pacific Railway Limited 411,100 25,916,463 72,653,703 Enbridge Inc. 3,129,500 50,446,683 143,957,000 Fortis Inc. 1,214,708 29,606,917 33,294,258 Honeywell International Inc. 203,800 12,226,413 29,320,520 Intact Financial Corporation 329,300 8,657,171 29,202,324 Magna International Inc. 1,178,400 26,380,304 66,131,808 Manulife Financial Corporation 4,906,000 139,058,759 101,794,440 MetLife Inc. 537,300 24,736,888 35,982,181 National Bank of Canada 825,600 27,329,374 33,279,936 Rogers Communications Inc. 1,313,800 45,947,423 62,694,536 Royal Bank of Canada 4,310,504 172,267,118 296,294,372 Sun Life Financial Inc. 1,494,700 59,153,101 63,377,305 Suncor Energy Inc. 2,073,624 72,102,995 74,069,849 TELUS Corporation 2,497,600 51,771,175 95,558,176 The Bank of Nova Scotia 4,723,800 183,370,412 237,944,006 The Toronto-Dominion Bank 5,283,500 157,599,812 286,577,040 TransCanada Corporation 2,347,000 72,902,287 90,156,780

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

323 Sun TD Dividend Income

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun TD Dividend Income - Estate Series A Sun TD Dividend Income - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.25 Net asset value, end of period ($)(1) 9.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 1,259,850 Net assets(1) 466 Number of units outstanding(1) 136,211 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.99 Management expense ratio (%)(2) 2.01 Management expense ratio before waivers (%)(2) 2.99 Management expense ratio before waivers (%)(2) 2.01 Portfolio turnover rate (%)(3) 9.43 Portfolio turnover rate (%)(3) 9.43

Sun TD Dividend Income - Investment Series A Sun TD Dividend Income - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.27 Net asset value, end of period ($)(1) 9.35 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 600,580 Net assets(1) 467 Number of units outstanding(1) 64,767 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.69 Management expense ratio (%)(2) 1.57 Management expense ratio before waivers (%)(2) 2.69 Management expense ratio before waivers (%)(2) 1.57 Portfolio turnover rate (%)(3) 9.43 Portfolio turnover rate (%)(3) 9.43

Sun TD Dividend Income - Lifetime Advantage Series A Sun TD Dividend Income - Lifetime Advantage Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.20 Net asset value, end of period ($)(1) 9.26 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 618,002 Net assets(1) 463 Number of units outstanding(1) 67,194 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.77 Management expense ratio (%)(2) 2.93 Management expense ratio before waivers (%)(2) 3.78 Management expense ratio before waivers (%)(2) 2.94 Portfolio turnover rate (%)(3) 9.43 Portfolio turnover rate (%)(3) 9.43

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

324 Sun TD Real Return Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 347,968 Cash 31 Receivable for investment units sold 548 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 348,547 Liabilities Current liabilities Bank indebtedness - Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 146 146 Net Assets Attributable to Holders of Redeemable Units 348,401

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 6,462 Net realized gain (loss) on sale of investments (1,955) Change in unrealized appreciation (depreciation) in value of investments (809) 3,698 Expenses (note 5) Management fees 1,776 Insurance fees 187 Administration fees 285 Total operating expenses 2,248 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 1,450

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

325 Sun TD Real Return Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 1,450 Holder of Redeemable Unit Transactions Proceeds from Units Issued 346,951 Redemption of Units - 346,951 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 348,401 Net Assets Attributable to Holders of Redeemable Units at end of period 348,401

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 1,450 Adjustments for: Net realized gain (loss) on sale of investments 1,955 Change in unrealized appreciation (depreciation) in value of investments 809 Purchases of investments (427,376) Proceeds from sale of investments 76,096 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 146 Net Cash provided by (used in) Operating Activities (346,920) Cash Flows from (used in) Financing Activities Proceeds from units issued 346,951 Redemption of units - Net Cash provided by (used in) Financing Activities 346,951 Net increase (decrease) in cash 31 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 31 Distribution Income Received 6,462

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

326 Sun TD Real Return Bond

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the TD Real Return Bond Fund (the "underlying fund"). The Investment Shares Cost ($) Value ($) Net Assets fundamental investment objective of the underlying fund is to provide a TD Real Return Bond Fund, Series O 33,267 348,777 347,968 regular level of interest income that is hedged against inflation, by investing primarily in Canadian government guaranteed real return bonds, as well as Total Investments 348,777 347,968 99.88 those issued by the governments of foreign countries. Please refer to note 8 in Other Assets less Liabilities 433 0.12 the accompanying notes to the financial statements for an explanation of the various risks. Total Net Assets 348,401 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market Top 25 Holdings of Underlying Fund risk, credit risk and liquidity risk through its holdings in the underlying fund(s), As at December 31, 2015 to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial Number of Average Fair statements of the underlying fund(s). Investment Shares Cost ($) Value ($) Bank of Montreal 0.45%, Jan 4, 2016 3,800,000 3,800,000 3,800,000 Canada Housing Trust No.1 1.95%, Jun 15, 2019 3,025,000 3,104,654 3,124,406 Canada Housing Trust No.1 1.20%, Jun 15, 2020 14,000,000 14,062,510 14,021,800 Cash 157,367 Government of Canada 2.25%, Jun 1, 2025 6,000,000 6,319,380 6,450,729 Government of Canada 4.25%, Dec 1, 2026 19,550,000 26,753,311 40,970,578 Government of Canada 4.00%, Dec 1, 2031 34,841,000 43,150,476 75,707,834 Government of Canada 3.00%, Dec 1, 2036 33,213,000 46,263,582 61,170,113 Government of Canada 2.00%, Dec 1, 2041 23,000,000 33,965,194 34,998,195 Government of Canada 1.50%, Dec 1, 2044 61,191,000 73,333,139 82,314,157 Government of Canada 1.25%, Dec 1, 2047 41,000,000 48,361,555 49,489,350 Province of Manitoba 1.74%, Dec 1, 2018 86,000,000 86,000,000 106,325,744 Province of Ontario 2.00%, Dec 1, 2036 27,000,000 27,989,961 35,995,553 Province of Quebec 4.50%, Dec 1, 2021 28,500,000 36,910,416 46,838,505 Province of Quebec 4.50%, Dec 1, 2026 4,300,000 6,008,416 8,290,851

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

327 Sun TD Real Return Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun TD Real Return Bond - Estate Series A Sun TD Real Return Bond - Estate Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.89 Net asset value, end of period ($)(1) 9.95 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 22,788 Net assets(1) 497 Number of units outstanding(1) 2,303 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.47 Management expense ratio (%)(2) 1.91 Management expense ratio before waivers (%)(2) 2.47 Management expense ratio before waivers (%)(2) 1.91 Portfolio turnover rate (%)(3) 48.23 Portfolio turnover rate (%)(3) 48.23

Sun TD Real Return Bond - Investment Series A Sun TD Real Return Bond - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 9.93 Net asset value, end of period ($)(1) 9.97 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 324,617 Net assets(1) 499 Number of units outstanding(1) 32,703 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.17 Management expense ratio (%)(2) 1.57 Management expense ratio before waivers (%)(2) 2.17 Management expense ratio before waivers (%)(2) 1.57 Portfolio turnover rate (%)(3) 48.23 Portfolio turnover rate (%)(3) 48.23

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

328 Sun Templeton Global Bond

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 110,235 Cash 13,892 Receivable for investment units sold 131 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 124,258 Liabilities Current liabilities Bank indebtedness - Redemptions payable 1,001 Payable for investment units purchased 14,023 Payable for fees & expenses 44 15,068 Net Assets Attributable to Holders of Redeemable Units 109,190

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 4,450 Net realized gain (loss) on sale of investments 5 Change in unrealized appreciation (depreciation) in value of investments (1,142) 3,313 Expenses (note 5) Management fees 341 Insurance fees 34 Administration fees 85 Total operating expenses 460 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,853

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

329 Sun Templeton Global Bond

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 2,853 Holder of Redeemable Unit Transactions Proceeds from Units Issued 107,916 Redemption of Units (1,579) 106,337 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 109,190 Net Assets Attributable to Holders of Redeemable Units at end of period 109,190

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 2,853 Adjustments for: Net realized gain (loss) on sale of investments (5) Change in unrealized appreciation (depreciation) in value of investments 1,142 Purchases of investments (98,343) Proceeds from sale of investments 863 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 44 Net Cash provided by (used in) Operating Activities (93,446) Cash Flows from (used in) Financing Activities Proceeds from units issued 107,916 Redemption of units (578) Net Cash provided by (used in) Financing Activities 107,338 Net increase (decrease) in cash 13,892 Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period 13,892 Distribution Income Received 4,450

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

330 Sun Templeton Global Bond

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Templeton Global Bond Fund (the "underlying Investment Shares Cost ($) Value ($) Net Assets fund"). The underlying fund seeks to achieve high current income and capital Sun Life Templeton Global Bond appreciation primarily by investing directly in fixed-income securities and Fund, Series I 11,625 111,377 110,235 preferred shares issued around the world or indirectly by investing primarily in the Templeton Global Bond Fund that invest in such securities. Please refer to Total Investments 111,377 110,235 100.96 note 8 in the accompanying notes to the financial statements for an Other Assets less Liabilities (1,045) (0.96) explanation of the various risks. Total Net Assets 109,190 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Templeton Global Bond Fund, Series O 170,041 2,263,332 2,190,131

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

331 Sun Templeton Global Bond

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Templeton Global Bond - Investment Series A Sun Templeton Global Bond - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.36 Net asset value, end of period ($)(1) 10.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 107,638 Net assets(1) 516 Number of units outstanding(1) 10,391 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.38 Management expense ratio (%)(2) 2.34 Management expense ratio before waivers (%)(2) 2.38 Management expense ratio before waivers (%)(2) 2.34 Portfolio turnover rate (%)(3) 2.64 Portfolio turnover rate (%)(3) 2.64

Sun Templeton Global Bond - Investment Series F Sun Templeton Global Bond - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.41 Net asset value, end of period ($)(1) 10.34 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 520 Net assets(1) 516 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.78 Management expense ratio (%)(2) 0.64 Management expense ratio before waivers (%)(2) 1.78 Management expense ratio before waivers (%)(2) 0.64 Portfolio turnover rate (%)(3) 2.64 Portfolio turnover rate (%)(3) 2.64

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

332 Sun Trimark

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 644,734 Cash - Receivable for investment units sold 1,337 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 646,071 Liabilities Current liabilities Bank indebtedness 1,337 Redemptions payable - Payable for investment units purchased - Payable for fees & expenses 393 1,730 Net Assets Attributable to Holders of Redeemable Units 644,341

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 10,765 Net realized gain (loss) on sale of investments 268 Change in unrealized appreciation (depreciation) in value of investments 43,181 54,214 Expenses (note 5) Management fees 3,658 Insurance fees 549 Administration fees 989 Total operating expenses 5,196 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 49,018

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

333 Sun Trimark

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations 49,018 Holder of Redeemable Unit Transactions Proceeds from Units Issued 595,323 Redemption of Units - 595,323 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 644,341 Net Assets Attributable to Holders of Redeemable Units at end of period 644,341

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations 49,018 Adjustments for: Net realized gain (loss) on sale of investments (268) Change in unrealized appreciation (depreciation) in value of investments (43,181) Purchases of investments (606,088) Proceeds from sale of investments 3,466 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 393 Net Cash provided by (used in) Operating Activities (596,660) Cash Flows from (used in) Financing Activities Proceeds from units issued 595,323 Redemption of units - Net Cash provided by (used in) Financing Activities 595,323 Net increase (decrease) in cash (1,337) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (1,337) Distribution Income Received 10,765

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

334 Sun Trimark

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Trimark Fund (the "underlying fund"). Trimark Fund Investment Shares Cost ($) Value ($) Net Assets seeks high-quality global stocks that are attractively priced relative to their Trimark Fund, Series I 11,072 601,553 644,734 prospective earnings, cash flow and valuation record to achieve long-term capital growth. The portfolio management team focuses on companies that Total Investments 601,553 644,734 100.06 offer strong management, industry leadership and a demonstrated Other Assets less Liabilities (393) (0.06) commitment to securing a competitive advantage. Please refer to note 8 in the accompanying notes to the financial statements for an explanation of the Total Net Assets 644,341 100.00 various risks.

Financial Instrument Risk of the Underlying Fund(s) Top 25 Holdings of Underlying Fund The Fund is indirectly exposed to currency risk, interest rate risk, other market As at December 31, 2015 risk, credit risk and liquidity risk through its holdings in the underlying fund(s), to the extent the underlying fund(s) is (are) exposed to these risks. Please refer to note 8 for an explanation of the management of the financial risks. The Number of Average Fair detailed risk analyses of the underlying fund(s) are disclosed in the financial Investment Shares Cost ($) Value ($) statements of the underlying fund(s). AIA Group Ltd. 12,287,000 45,527,119 101,292,278 ALK-Abelló AS 613,357 80,889,545 108,081,017 Alphabet Inc., Class A 82,245 40,332,863 88,545,537 Anheuser-Busch InBev SA 717,266 51,014,957 124,068,705 Becton Dickinson and Co. 577,369 44,505,374 123,111,865 British American Tobacco PLC 1,354,083 70,675,225 104,077,846 Bureau Veritas SA 3,316,525 94,871,694 91,332,707 Experian PLC 4,881,786 79,469,448 119,382,863 Express Scripts Holding Co. 1,278,335 69,513,905 154,624,317 Flowserve Corp. 1,608,817 86,660,620 93,681,615 Fosun International Ltd. 46,890,500 28,680,358 100,554,152 Henkel AG & Co. KGaA 723,910 45,784,604 96,131,528 Honeywell International Inc. 829,166 114,910,610 118,835,844 Johnson & Johnson 713,726 78,817,587 101,451,511 KLA-Tencor Corp. 1,079,771 69,939,687 103,621,558 Microsoft Corp. 1,749,371 46,191,579 134,304,439 Nestlé SA 1,193,690 49,410,502 122,457,151 Corp. 1,096,713 50,827,091 109,405,715 Philip Morris International Inc. 783,015 73,478,337 95,253,371 Publicis Groupe SA 1,006,895 56,499,075 92,414,279 Schlumberger Ltd. 908,283 89,403,542 87,667,251 Sinopharm Group Co. Ltd. 18,925,600 45,726,466 104,454,890 The Walt Disney Co. 866,770 37,373,790 126,036,382 Visa Inc., Class A 1,000,896 18,270,464 107,409,513 Wells Fargo & Co. 1,701,407 78,993,037 127,985,172

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

335 Sun Trimark

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Trimark - Investment Series A Sun Trimark - Investment Series F 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 10.24 Net asset value, end of period ($)(1) 10.32 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 643,825 Net assets(1) 516 Number of units outstanding(1) 62,862 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.14 Management expense ratio (%)(2) 2.08 Management expense ratio before waivers (%)(2) 3.14 Management expense ratio before waivers (%)(2) 2.08 Portfolio turnover rate (%)(3) 1.37 Portfolio turnover rate (%)(3) 1.37

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

336 Sun Trimark Canadian

Statement of Financial Position As at December 31, 2015

December 31, 2015 ($) Assets Current assets Investments (non-derivative financial assets) (note 2) 407,022 Cash - Receivable for investment units sold 988 Subscriptions receivable - Distribution receivable from underlying fund - Other receivable - 408,010 Liabilities Current liabilities Bank indebtedness 988 Redemptions payable 1 Payable for investment units purchased - Payable for fees & expenses 271 1,260 Net Assets Attributable to Holders of Redeemable Units 406,750

Statement of Comprehensive Income For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Income Net gains (losses) on investments Distributions from underlying fund 9,926 Net realized gain (loss) on sale of investments (54) Change in unrealized appreciation (depreciation) in value of investments (26,815) (16,943) Expenses (note 5) Management fees 1,903 Insurance fees 600 Administration fees 335 Total operating expenses 2,838 Management fees waived/absorbed by the Manager - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (19,781)

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

337 Sun Trimark Canadian

Statement of Changes in Net Assets Attributable to Holders of Redeemable Units For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Net Assets Attributable to Holders of Redeemable Units at beginning of period - Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (19,781) Holder of Redeemable Unit Transactions Proceeds from Units Issued 426,532 Redemption of Units (1) 426,531 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units for the period 406,750 Net Assets Attributable to Holders of Redeemable Units at end of period 406,750

Statement of Cash Flows For the period from May 4, 2015 (inception date) to December 31, 2015

2015 ($) Cash Flows from (used in) Operating Activities Increase (decrease) in Net Assets Attributable to Holders of Redeemable Units from operations (19,781) Adjustments for: Net realized gain (loss) on sale of investments 54 Change in unrealized appreciation (depreciation) in value of investments 26,815 Purchases of investments (435,664) Proceeds from sale of investments 785 (Increase) decrease in distribution receivable - (Increase) decrease in other receivable - Increase (decrease) in fees & expenses payable 271 Net Cash provided by (used in) Operating Activities (427,520) Cash Flows from (used in) Financing Activities Proceeds from units issued 426,532 Redemption of units - Net Cash provided by (used in) Financing Activities 426,532 Net increase (decrease) in cash (988) Cash (bank indebtedness) at beginning of period - Cash (bank indebtedness) at end of period (988) Distribution Income Received 9,926

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

338 Sun Trimark Canadian

Schedule of Investment Portfolio Discussion of Financial Risk Management As at December 31, 2015 Financial Instrument Risk Number of Average Fair % of Total The Fund invests in the Sun Life Trimark Canadian Class (the "underlying fund"). Investment Shares Cost ($) Value ($) Net Assets The underlying fund seeks to achieve consistent long-term capital Sun Life Trimark Canadian Class, Series I 51,684 433,837 407,022 appreciation primarily by investing directly in common shares of Canadian companies or indirectly by investing primarily in the Trimark Canadian Fund Total Investments 433,837 407,022 100.07 that invest in such securities. Please refer to note 8 in the accompanying notes Other Assets less Liabilities (272) (0.07) to the financial statements for an explanation of the various risks. Total Net Assets 406,750 100.00 Financial Instrument Risk of the Underlying Fund(s)

The Fund is indirectly exposed to currency risk, interest rate risk, other market risk, credit risk and liquidity risk through its holdings in the underlying fund(s), Top 25 Holdings of Underlying Fund to the extent the underlying fund(s) is (are) exposed to these risks. Please refer As at December 31, 2015 to note 8 for an explanation of the management of the financial risks. The detailed risk analyses of the underlying fund(s) are disclosed in the financial statements of the underlying fund(s). Number of Average Fair Investment Shares Cost ($) Value ($) Trimark Canadian Fund, Series I 65,965 850,662 738,152

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

339 Sun Trimark Canadian

Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the year ended December 31, 2015.

Sun Trimark Canadian - Estate Series A Sun Trimark Canadian - Estate Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 7.45 Net asset value, end of period ($)(1) 9.38 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 374,363 Net assets(1) 469 Number of units outstanding(1) 50,227 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.51 Management expense ratio (%)(2) 3.49 Management expense ratio before waivers (%)(2) 3.51 Management expense ratio before waivers (%)(2) 3.49 Portfolio turnover rate (%)(3) 0.51 Portfolio turnover rate (%)(3) 0.51

Sun Trimark Canadian - Estate Series F Sun Trimark Canadian - Estate Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 7.51 Net asset value, end of period ($)(1) 9.41 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 376 Net assets(1) 470 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 2.38 Management expense ratio (%)(2) 1.25 Management expense ratio before waivers (%)(2) 2.38 Management expense ratio before waivers (%)(2) 1.25 Portfolio turnover rate (%)(3) 0.51 Portfolio turnover rate (%)(3) 0.51

Sun Trimark Canadian - Investment Series A Sun Trimark Canadian - Investment Series E 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 7.48 Net asset value, end of period ($)(1) 9.39 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 29,756 Net assets(1) 469 Number of units outstanding(1) 3,977 Number of units outstanding(1) 50 Management expense ratio (%)(2) 3.05 Management expense ratio (%)(2) 3.04 Management expense ratio before waivers (%)(2) 3.05 Management expense ratio before waivers (%)(2) 3.04 Portfolio turnover rate (%)(3) 0.51 Portfolio turnover rate (%)(3) 0.51

Sun Trimark Canadian - Investment Series F Sun Trimark Canadian - Investment Series O 2015(4) 2015(4) The Fund's Net Asset Value per Unit The Fund's Net Asset Value per Unit Net asset value, end of period ($)(1) 7.54 Net asset value, end of period ($)(1) 9.42 Ratios and Supplemental Data Ratios and Supplemental Data Net assets(1) 377 Net assets(1) 471 Number of units outstanding(1) 50 Number of units outstanding(1) 50 Management expense ratio (%)(2) 1.93 Management expense ratio (%)(2) 0.80 Management expense ratio before waivers (%)(2) 1.93 Management expense ratio before waivers (%)(2) 0.80 Portfolio turnover rate (%)(3) 0.51 Portfolio turnover rate (%)(3) 0.51

(1) This information is provided as at December 31, of the years shown. (2) The Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net assets during the period. (3) The portfolio turnover rate is unaudited. The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of a contractholder receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. (4) The Fund's units were first issued on May 4, 2015.

The accompanying Notes are an integral part of these financial statements. Sun Life GIFs

340 Sun Life Guaranteed Investment Funds (GIFs) Notes to Financial Statements For the period ended December 31, 2015

1. General Information

Sun Life Assurance Company of Canada (the “Company”) is a subsidiary of Sun Life Financial Inc. The Company’s principal place of business is 227 King Street South, Waterloo, Ontario, N2J 4C5. The Company is the sole issuer of the individual variable insurance contract providing for investment in each Fund (individually, a “Fund”, and collectively, the “Funds”). The assets of the Funds are owned by the Company and are not separate legal entities, but are segregated from other assets of the Company under the Insurance Companies Act (Canada). The funds are subject to the Canadian Life and Association Guideline G2: Individual Variable Insurance Contracts Relating to Segregated Funds.

The Funds may hold direct investments and/or investment funds (“underlying funds”). Each Fund has a fundamental investment objective, which determines the investment policies and restrictions for the Fund. The Funds provide return of premium guarantees to contractholders, which are payable either on maturity date as set out in the contract or upon receipt of notification of death of the last surviving annuitant. The Company, as manager of the Funds (the “Manager”), is responsible for their daily management, operations and promotion. The Funds are available under several series/premium allocation options. Please refer to the Fund Facts and Information Folders.

Information is available on the Company’s website at www..ca. Administration and custodial duties of the Funds are provided by RBC Investor Services Trust.

The Schedule of Investment Portfolio of each of the Funds is as at December 31, 2015. The Statement of Financial Position of each of the Funds is as at December 31, 2015. The Statement of Comprehensive Income, Statement of Changes in Net Assets Attributable to Holders of Redeemable Units, and the Statement of Cash Flows of each of the Funds are for the period ended December 31, 2015.

These financial statements were approved and issued by the Manager on April 29, 2016. 2. Significant Accounting Policies

Basis of presentation and adoption of IFRS

These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Financial Instruments a) Classification and recognition of financial instruments

In accordance with IAS 39 Financial Instruments: Recognition and Measurement (“IAS 39”), financial assets and financial liabilities are classified at initial recognition into the following categories:

Financial assets and financial liabilities at fair value through profit or loss

The category of financial assets and financial liabilities at fair value through profit or loss is sub-divided into:

Financial assets and financial liabilities classified as held-for-trading: Financial assets and financial liabilities are classified as held-for-trading if they are acquired for the purpose of selling and/or repurchasing in the near term. Derivatives and securities sold short held by the Funds are classified as held-for-trading and do not meet the definition of effective hedging instruments as defined by IAS 39. These investments are acquired principally for the purpose of generating a profit from short-term fluctuations in price.

Financial instruments designated as fair value through profit or loss: All investments held by the Funds, excluding derivatives and securities sold short, are designated as fair value through profit or loss upon initial recognition. Investments in this category include equities, underlying funds, bonds and other interest-bearing investments. These financial assets are designated upon initial recognition on the basis that they are part of a group of financial assets that are managed and have their performance evaluated on a fair value basis, in accordance with risk management and investment strategies of the Funds, as set out in the Funds’ prospectus.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The Funds include in this category amounts receivable relating to investment units sold and other short-term receivables.

Other financial liabilities

This category includes all financial liabilities, other than those classified as fair value through profit or loss. The Funds include in this category amounts relating to payables in respect of amounts payable for investment units purchased and other accrued liabilities.

A financial asset or a financial liability is recognized when a Fund becomes a party to the contractual provisions of the instrument. Purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that a Fund commits to purchase or sell the asset. b) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the Statements of Financial Position only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. In the normal course of business, the Funds enter into various master netting agreements or similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts.

As at December 31, 2015, the Funds did not enter into any arrangements whereby the financial instruments were eligible to be offset.

Sun Life Assurance Company of Canada

341 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015 c) Valuation of financial instruments

Financial assets and financial liabilities at fair value through profit or loss are recorded in the Statements of Financial Position at fair value upon initial recognition. All transaction costs, such as brokerage commissions, incurred in the purchase and sale of securities for such instruments are recognized directly in profit or loss. Loans and receivables and other financial liabilities (other than those classified as held-for-trading) are measured initially at their fair value plus any directly attributable incremental costs of acquisition or issue. For financial assets and financial liabilities where the fair value at initial recognition does not equal the transaction price, the Funds recognize the difference in the Statements of Comprehensive Income, unless specified otherwise.

After initial measurement, the Funds measure financial instruments that are classified as fair value through profit or loss, at fair value. Subsequent changes in the fair value of those financial instruments (i.e., the excess/shortfall of the sum of the fair value of portfolio investments over/below the sum of the average cost of each portfolio investment) are recorded in “Change in unrealized appreciation (depreciation) in value of investments” in the Statements of Comprehensive Income.

The average cost of portfolio investments represents the sum of the average cost of each portfolio investment. For the purposes of determining the average cost of each portfolio investment, the purchase price of portfolio investments acquired by a Fund is added to the average cost of the particular portfolio investment immediately prior to the purchase. The average cost of a portfolio investment is reduced by the number of units sold multiplied by the average cost of the portfolio investment at the time of the sale. The average cost per of each portfolio investment sold is determined by dividing the average cost of the portfolio investment by the number of units held immediately prior to the sale transaction. Transaction costs incurred in portfolio transactions are excluded from the average cost of investments. Realized gains and losses on the sale of investments are also calculated based on the average costs, excluding transaction costs, of the related investment.

Loans and receivables, other assets and liabilities (other than those classified as fair value through profit or loss) are measured at amortized cost.

The Funds’ obligation for net assets attributable to contractholders of redeemable units is presented at the redemption amount.

The Funds measure their financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Funds.

The fair values of each specific type of investment are determined in the following manner:

i) Underlying funds are fair valued each business day using the most recent Net Asset Value (“NAV”) quoted by the Manager on the valuation date.

ii) For all other financial assets and liabilities, the carrying value is an approximation of the fair value, for cash, receivable for investment units sold, subscriptions receivable, distributions receivable from underlying funds, bank indebtedness, redemptions payable, payable for investment units purchased and payable for fees and expenses. d) Cash

Cash consists of cash on hand at fair value. e) Distributions from underlying fund

Distributions from underlying funds are recorded in the year to which the distribution relates. Distributions from underlying fund may include a combination of capital gains/(losses), Canadian and foreign dividends, and interest income. f) Transaction costs

Transaction costs incurred in portfolio transactions are excluded from the average cost of investments and are recognized immediately in income and are presented as a separate expense item in the Statements of Comprehensive Income. g) Redeemable unit valuation and valuation date

Redeemable units are issued and redeemed on a continuous basis at their NAV, which is determined for every series of redeemable units of each Fund, on each day that the is open for business.

The redeemable unit valuation per series is determined by dividing the aggregate market value of the net assets of that series of the Fund by the total number of redeemable units of that series outstanding at the close of business on the valuation day. h) Investment transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on the sale of investments and unrealized appreciation (depreciation) in the value of investments are calculated with reference to the average cost of the related investments. i) Revenue recognition

i) Interest income for distribution purposes resulting from investments in bonds is recorded on the accrual basis based on the bond coupon rate.

ii) Dividend income is recorded on the ex-dividend date.

iii) Realized gains and losses on the sale of investments and unrealized appreciation (depreciation) in the value of investments are calculated with reference to the average cost of the related investments.

iv) Income, realized gain (loss) and unrealized gain (loss) are allocated among the series on a pro-rata basis.

Sun Life Assurance Company of Canada

342 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015 j) Increase/(decrease) in net assets attributable to holders of redeemable units per unit

Net increase/(decrease) in net assets attributable to contractholders of redeemable units per unit in the Statements of Comprehensive Income represents the net increase/(decrease) in net assets attributable to holders of redeemable units for the period, divided by the weighted average units outstanding during the period. k) Multi-series structured funds

The realized and unrealized capital gains or losses, income, and common expenses (other than series-specific operating expenses and management fees) of the Funds are allocated on each valuation date to the contractholders in proportion to the respective prior day’s NAV, which includes contractholder trade(s) dated for that day of each series at the date of which the allocation is made. All series-specific operating expenses and management fees are charged directly to the series and are not further allocated. All series-specific operating expenses are paid by the Manager and are collected from the Funds on a recoverable basis. l) Portfolio turnover rate

A Fund’s portfolio turnover rate (“PTR”) indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A PTR of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a Fund’s PTR in a year, the greater the trading costs payable by the Fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high PTR and the performance of a Fund. 3. Critical Accounting Judgments, Estimates and Assumptions

The preparation of financial statements requires management to use judgment in applying its accounting policies and to make estimates and assumptions about the future. The following discusses the most significant accounting judgments and estimates that the Funds have made in preparing the financial statements:

Assessment as investment entity

Entities that meet the definition of an investment entity within IFRS 10 Consolidated Financial Statements are required to measure their subsidiaries at fair value through profit or loss rather than consolidate them. The criteria which define an investment entity are as follows:

• an entity that obtains funds from one or more investors for the purpose of providing those investors with investment services;

• an entity that commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment income or both; and

• an entity that measures and evaluates the performance of substantially all of its investments on a fair value basis.

The Funds’ objective is to accumulate assets for the purpose of providing contractholders returns in the form of annuity payments at maturity. The Funds report to their contractholders via annual contractholder information, and to their management, via internal management reports, on a fair value basis. All investments are reported at fair value. The Company has also concluded that the Funds meet the additional characteristics of an investment entity, in that they have one or more investment, have more than one contractholder and its contractholders are not related parties.

The Company meets the above criteria and is, therefore, exempt from the consolidation requirement under IFRS 10. These conclusions will be reassessed on an annual basis, if any of these criteria or characteristics change. 4. Redeemable Units of the Funds

The series of redeemable units offered by each Fund is outlined in the Fund Specific Notes to the Financial Statements. The outstanding redeemable units represent the capital of the Funds. Each redeemable unit has no par value, and the value of each redeemable unit is the NAV. Redeemable unit values are calculated at the end of each day by dividing the total NAV of each series by its outstanding units. Total NAV of each series is computed at the end of each day by calculating each series’ proportionate share of the Fund’s total NAV before taking into consideration contractholders’ transactions and payments made on that day. Distributions made by the Funds and re-invested by clients in additional redeemable units also constitute issued capital of the Funds.

Redeemable units are redeemed at the NAV per unit of the Fund.

The Manager is responsible for managing the capital of the Funds. The capital received by a Fund is utilized within the respective investment mandate of a Fund. This includes, for all Funds, the ability to make liquidity available to satisfy client unit redemption requirements upon the client’s request.

Changes in the Funds’ capital during the period are reflected in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.

The Funds’ redeemable units are classified as financial liabilities on the Statements of Financial Position since the Funds have a contractual obligation for the issuer to repurchase or redeem them for cash or another financial asset and to distribute their income to minimize taxes such that they have no discretion to avoid cash distributions and have an ongoing redemption option.

Sun Life Assurance Company of Canada

343 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

5. Interest in Underlying Funds

The Funds may invest in redeemable units or shares of underlying funds to gain exposure to the investment objectives and strategies of the underlying funds. Each underlying fund is generally financed through the capital invested by the Fund, along with other investors, which entitles unitholders to a proportionate share of the underlying fund’s net assets. The Fund does not provide additional financial or other support to the underlying funds. All underlying funds were established in and carry out their operations in Canada. The Funds’ interests in underlying funds are reported at fair value in Financial assets at fair value through profit or loss in the Statement of financial position and the Schedule of investment portfolio, which represents the Funds’ maximum exposure to financial loss.

As at December 31, 2015 Segregated Fund Underlying Fund(s) % of Total Net Assets Ownership Interest % Sun BlackRock Canadian Composite Equity Sun Life BlackRock Canadian Composite Equity Class 100 29 Sun Dynamic Equity Income Sun Life Dynamic Equity Income Class 100 22 Sun Franklin Bissett Canadian Equity Sun Life Franklin Bissett Canadian Equity Class 100 40 Sun MFS Dividend Income Sun Life MFS Dividend Income Class 100 44 Sun Sentry Value Sun Life Sentry Value Class 100 25 Sun Trimark Canadian Sun Life Trimark Canadian Class 100 55

Sun Life Assurance Company of Canada

344 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

6. Management Fees, Insurance Fees and Expenses

The Funds pay management fees to the Manager, which are accrued daily and paid monthly based on the NAV of each series of a Fund. The maximum rate of the fee, excluding GST/HST and other applicable taxes if any, is set out below. Any increase of the management fee will be considered a fundamental change.

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Beutel Goodman Canadian Bond Sun BlackRock Canadian Balanced Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Estate Series A 1.50 (0.07) 1.43 Estate Series A 2.00 (0.38) 1.62 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Estate Series E 1.50 (0.07) 1.43 Estate Series E 2.00 (0.38) 1.62 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Estate Series F 1.00 (0.07) 0.93 Estate Series F 1.00 (0.38) 0.62 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Estate Series O - - Estate Series O - - Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Investment Series A 1.50 (0.07) 1.43 Investment Series A 2.00 (0.37) 1.63 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Investment Series E 1.50 (0.07) 1.43 Investment Series E 2.00 (0.37) 1.63 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Investment Series F 1.00 (0.07) 0.93 Investment Series F 1.00 (0.37) 0.63 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Investment Series O - - Investment Series O - - Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Lifetime Advantage Ser A 1.50 (0.06) 1.44 Lifetime Advantage Ser A 2.00 (0.32) 1.68 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Lifetime Advantage Ser E 1.50 (0.06) 1.44 Lifetime Advantage Ser E 2.00 (0.32) 1.68 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Lifetime Advantage Ser F 1.00 (0.06) 0.94 Lifetime Advantage Ser F 1.00 (0.32) 0.68 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Lifetime Advantage Ser O - - Lifetime Advantage Ser O - - Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Protect Series A 1.50 (0.08) 1.42 Protect Series A 2.00 (0.37) 1.63 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Protect Series E 1.50 (0.08) 1.42 Protect Series E 2.00 (0.37) 1.63 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Protect Series F 1.00 (0.08) 0.92 Protect Series F 1.00 (0.37) 0.63 Sun Beutel Goodman Canadian Bond - Sun BlackRock Canadian Balanced - Protect Series O - - Protect Series O - -

Sun Life Assurance Company of Canada

345 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun BlackRock Canadian Composite Equity Sun BlackRock Canadian Equity Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Estate Series A 2.00 (0.29) 1.71 Estate Series A 2.00 (0.25) 1.75 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Estate Series E 2.00 (0.29) 1.71 Estate Series E 2.00 (0.25) 1.75 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Estate Series F 1.00 (0.29) 0.71 Estate Series F 1.00 (0.25) 0.75 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Estate Series O - - Estate Series O - - Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Investment Series A 2.00 (0.29) 1.71 Investment Series A 2.00 (0.24) 1.76 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Investment Series E 2.00 (0.29) 1.71 Investment Series E 2.00 (0.24) 1.76 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Investment Series F 1.00 (0.29) 0.71 Investment Series F 1.00 (0.24) 0.76 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Investment Series O - - Investment Series O - - Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Protect Series A 2.00 (0.30) 1.70 Protect Series A 2.00 (0.26) 1.74 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Protect Series E 2.00 (0.30) 1.70 Protect Series E 2.00 (0.26) 1.74 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Protect Series F 1.00 (0.30) 0.70 Protect Series F 1.00 (0.26) 0.74 Sun BlackRock Cdn Composite Equity - Sun BlackRock Canadian Equity - Protect Series O - - Protect Series O - -

Sun BlackRock Canadian Equity Bundle Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser A 2.00 (0.32) 1.68 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser E 2.00 (0.32) 1.68 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser F 1.00 (0.32) 0.68 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser O - -

Sun BlackRock Canadian Composite Eq Bundle Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr A 2.00 (0.32) 1.68 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr E 2.00 (0.32) 1.68 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr F 1.00 (0.32) 0.68 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr O - -

Sun Life Assurance Company of Canada

346 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun BlackRock Cdn Universe Bond Sun CI Cambridge Cdn Asset Allocation Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Cdn Asset Allocation Estate Series A 1.50 (0.07) 1.43 - Estate Series A 2.00 - 2.00 Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Cdn Asset Allocation Estate Series E 1.50 (0.07) 1.43 - Estate Series F 1.00 - 1.00 Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Cdn Asset Allocation Estate Series F 1.00 (0.07) 0.93 - Inv Ser A 2.00 - 2.00 Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Cdn Asset Allocation Estate Series O - - - Inv Ser F 1.00 - 1.00 Sun BlackRock Cdn Universe Bond - Investment Series A 1.50 (0.07) 1.43 Sun CI Cambridge Global Equity Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Global Equity - Investment Series E 1.50 (0.07) 1.43 Estate Series A 2.00 - 2.00 Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Global Equity - Investment Series F 1.00 (0.07) 0.93 Estate Series F 1.00 - 1.00 Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Global Equity - Investment Series O - - Investment Series A 2.00 - 2.00 Sun BlackRock Cdn Universe Bond - Sun CI Cambridge Global Equity - Lifetime Advantage Ser A 1.50 (0.11) 1.39 Investment Series F 1.00 - 1.00

Sun BlackRock Cdn Universe Bond - Sun CI Cambridge/MFS Canadian Bundle Lifetime Advantage Ser E 1.50 (0.11) 1.39 Sun CI Cambridge/MFS Cdn Bundle - Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser A 2.00 (0.01) 1.99 Lifetime Advantage Ser F 1.00 (0.11) 0.89 Sun CI Cambridge/MFS Cdn Bundle - Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser F 1.00 (0.01) 0.99 Lifetime Advantage Ser O - - Sun BlackRock Cdn Universe Bond - Sun CI Cambridge/MFS Global Bundle Protect Series A 1.50 (0.12) 1.38 Sun CI Cambridge/MFS Global Bundle - Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser A 2.00 (0.01) 1.99 Protect Series E 1.50 (0.12) 1.38 Sun CI Cambridge/MFS Global Bundle - Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser F 1.00 (0.01) 0.99 Protect Series F 1.00 (0.12) 0.88 Sun BlackRock Cdn Universe Bond - Sun CI Signature Diversified Yield II Protect Series O - - Sun CI Signature Diversified Yield II - Estate Series A 2.00 - 2.00 Sun Canadian Balanced Bundle Sun CI Signature Diversified Yield II - Sun Canadian Balanced Bundle - Estate Series F 1.00 - 1.00 Lifetime Advantage Series A 2.00 (0.04) 1.96 Sun CI Signature Diversified Yield II - Sun Canadian Balanced Bundle - Investment Series A 2.00 - 2.00 Lifetime Advantage Series F 1.00 (0.04) 0.96 Sun CI Signature Diversified Yield II - Investment Series F 1.00 - 1.00 Sun CI Cambridge Canadian Equity Sun CI Signature Diversified Yield II - Sun CI Cambridge Canadian Equity - Lifetime Ad Series A 2.00 (0.01) 1.99 Estate Series A 2.00 - 2.00 Sun CI Signature Diversified Yield II - Sun CI Cambridge Canadian Equity - Lifetime Ad Series F 1.00 (0.01) 0.99 Estate Series F 1.00 - 1.00 Sun CI Cambridge Canadian Equity - Investment Series A 2.00 - 2.00 Sun CI Cambridge Canadian Equity - Investment Series F 1.00 - 1.00

Sun Life Assurance Company of Canada

347 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun CI Signature High Income Sun Dollar Cost Average Daily Interest Sun CI Signature High Income - Sun Dollar Cost Average Daily Interest - Estate Series A 2.00 - 2.00 Estate Series A 0.60 (0.09) 0.51 Sun CI Signature High Income - Sun Dollar Cost Average Daily Interest - Estate Series F 1.00 - 1.00 Estate Series F 0.40 (0.09) 0.31 Sun CI Signature High Income - Sun Dollar Cost Average Daily Interest - Investment Series A 2.00 - 2.00 Investment Series A 0.60 (0.09) 0.51 Sun CI Signature High Income - Sun Dollar Cost Average Daily Interest - Investment Series F 1.00 - 1.00 Investment Series F 0.40 (0.09) 0.31 Sun Dollar Cost Average Daily Interest - Sun CI Signature Income & Growth Lifetime Adv Ser A 0.60 (0.09) 0.51 Sun CI Signature Income & Growth - Sun Dollar Cost Average Daily Interest - Estate Series A 2.00 - 2.00 Lifetime Adv Ser F 0.40 (0.09) 0.31 Sun CI Signature Income & Growth - Sun Dollar Cost Average Daily Interest - Estate Series F 1.00 - 1.00 Protect Series A 0.60 (0.09) 0.51 Sun CI Signature Income & Growth - Sun Dollar Cost Average Daily Interest - Investment Series A 2.00 - 2.00 Protect Series F 0.40 (0.09) 0.31 Sun CI Signature Income & Growth - Investment Series F 1.00 - 1.00 Sun Dynamic American Value Sun CI Signature Income & Growth - Sun Dynamic American Value - Lifetime Ad Series A 2.00 (0.01) 1.99 Investment Series A 2.00 - 2.00 Sun CI Signature Income & Growth - Sun Dynamic American Value - Lifetime Ad Series F 1.00 (0.01) 0.99 Investment Series E 2.00 - 2.00 Sun Dynamic American Value - Sun Daily Interest Investment Series F 1.00 - 1.00 Sun Daily Interest - Estate Series A 0.60 (0.09) 0.51 Sun Dynamic American Value - Sun Daily Interest - Estate Series F 0.40 (0.09) 0.31 Investment Series O - - Sun Daily Interest - Sun Dynamic Equity Income Investment Series A 0.60 (0.09) 0.51 Sun Dynamic Equity Income - Sun Daily Interest - Investment Series F 0.40 (0.09) 0.31 Estate Series A 2.00 - 2.00 Sun Daily Interest - Lifetime Sun Dynamic Equity Income - Advantage Series A 0.60 (0.09) 0.51 Estate Series E 2.00 - 2.00 Sun Daily Interest - Lifetime Sun Dynamic Equity Income - Advantage Series F 0.40 (0.09) 0.31 Estate Series F 1.00 - 1.00 Sun Daily Interest - Protect Series A 0.60 (0.09) 0.51 Sun Dynamic Equity Income - Sun Daily Interest - Protect Series F 0.40 (0.09) 0.31 Estate Series O - - Sun Dynamic Equity Income - Investment Series A 2.00 - 2.00 Sun Dynamic Equity Income - Investment Series E 2.00 - 2.00 Sun Dynamic Equity Income - Investment Series F 1.00 - 1.00 Sun Dynamic Equity Income - Investment Series O - -

Sun Life Assurance Company of Canada

348 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Dynamic Strategic Yield Sun Fidelity Income Allocation Sun Dynamic Strategic Yield - Sun Fidelity Income Allocation - Estate Series A 2.00 (0.15) 1.85 Estate Series A 2.00 - 2.00 Sun Dynamic Strategic Yield - Sun Fidelity Income Allocation - Estate Series E 2.00 (0.15) 1.85 Estate Series F 1.00 - 1.00 Sun Dynamic Strategic Yield - Sun Fidelity Income Allocation - Estate Series F 1.00 (0.15) 0.85 Investment Series A 2.00 - 2.00 Sun Dynamic Strategic Yield - Sun Fidelity Income Allocation - Estate Series O - - Investment Series F 1.00 - 1.00 Sun Dynamic Strategic Yield - Sun Fidelity Income Allocation - Investment Series A 2.00 (0.15) 1.85 Lifetime Adv Series A 2.00 (0.01) 1.99 Sun Dynamic Strategic Yield - Sun Fidelity Income Allocation - Investment Series E 2.00 (0.15) 1.85 Lifetime Adv Series F 1.00 (0.01) 0.99 Sun Dynamic Strategic Yield - Investment Series F 1.00 (0.15) 0.85 Sun Fidelity Monthly Income Sun Dynamic Strategic Yield - Sun Fidelity Monthly Income - Investment Series O - - Estate Series A 2.00 - 2.00 Sun Fidelity Monthly Income - Sun Estate Settlement Estate Series F 1.00 - 1.00 Sun Estate Settlement - Estate Series A 0.60 (0.09) 0.51 Sun Fidelity Monthly Income - Investment Series A 2.00 - 2.00 Sun Estate Settlement - Estate Series F 0.40 (0.09) 0.31 Sun Fidelity Monthly Income - Sun Estate Settlement - Investment Series F 1.00 - 1.00 Income Series A 0.60 (0.09) 0.51 Sun Fidelity Monthly Income - Lifetime Sun Estate Settlement - Advantage Series A 2.00 (0.01) 1.99 Income Series F 0.40 (0.09) 0.31 Sun Fidelity Monthly Income - Lifetime Sun Estate Settlement - Advantage Series F 1.00 (0.01) 0.99 Investment Series A 0.60 (0.53) 0.07

Sun Estate Settlement - Sun Fidelity NorthStar Investment Series F 0.40 (0.09) 0.31 Sun Fidelity NorthStar - Sun Estate Settlement - Lifetime Investment Series A 2.00 - 2.00 Advantage Series A 0.60 (0.09) 0.51 Sun Fidelity NorthStar - Sun Estate Settlement - Lifetime Investment Series F 1.00 - 1.00 Advantage Series F 0.40 (0.09) 0.31 Sun Estate Settlement - Sun Fidelity True North Protect Series A 0.60 (0.21) 0.39 Sun Fidelity True North - Sun Estate Settlement - Estate Series A 2.00 - 2.00 Protect Series F 0.40 (0.09) 0.31 Sun Fidelity True North - Estate Series F 1.00 - 1.00 Sun Fidelity Floating Rate High Income Sun Fidelity True North - Sun Fidelity Floating Rate High Income Investment Series A 2.00 - 2.00 - Estate Series A 1.50 - 1.50 Sun Fidelity True North - Sun Fidelity Floating Rate High Income Investment Series F 1.00 - 1.00 - Estate Series F 1.00 - 1.00 Sun Fidelity Floating Rate High Income - Investment Series A 1.50 - 1.50 Sun Fidelity Floating Rate High Income - Investment Series F 1.00 - 1.00

Sun Life Assurance Company of Canada

349 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Fiera Global Equity Sun Life Granite Balanced Sun Fiera Global Equity - Sun Life Granite Balanced - Estate Series A 2.00 - 2.00 Estate Series A 2.00 (0.13) 1.87 Sun Fiera Global Equity - Sun Life Granite Balanced - Estate Series F 1.00 - 1.00 Estate Series E 2.00 (0.13) 1.87 Sun Fiera Global Equity - Sun Life Granite Balanced - Investment Series A 2.00 - 2.00 Estate Series F 1.00 (0.13) 0.87 Sun Fiera Global Equity - Sun Life Granite Balanced - Investment Series F 1.00 - 1.00 Estate Series O - - Sun Life Granite Balanced - Sun Fiera US Equity Investment Series A 2.00 (0.13) 1.87 Sun Fiera US Equity - Sun Life Granite Balanced - Investment Series A 2.00 - 2.00 Investment Series E 2.00 (0.13) 1.87 Sun Fiera US Equity - Sun Life Granite Balanced - Investment Series F 1.00 - 1.00 Investment Series F 1.00 (0.13) 0.87

Sun Franklin Bissett Canadian Equity Sun Life Granite Balanced - Investment Series O - - Sun Franklin Bissett Canadian Equity - Estate Series A 2.00 - 2.00 Sun Life Granite Balanced - Lifetime Advantage Series A 2.00 (0.15) 1.85 Sun Franklin Bissett Canadian Equity - Estate Series E 2.00 - 2.00 Sun Life Granite Balanced - Lifetime Advantage Series E 2.00 (0.15) 1.85 Sun Franklin Bissett Canadian Equity - Estate Series F 1.00 - 1.00 Sun Life Granite Balanced - Lifetime Advantage Series F 1.00 (0.15) 0.85 Sun Franklin Bissett Canadian Equity - Estate Series O - - Sun Life Granite Balanced - Lifetime Advantage Series O - - Sun Franklin Bissett Canadian Equity - Investment Series A 2.00 - 2.00 Sun Life Granite Balanced - Protect Series A 2.00 (0.08) 1.92 Sun Franklin Bissett Canadian Equity - Investment Series E 2.00 - 2.00 Sun Life Granite Balanced - Protect Series E 2.00 (0.08) 1.92 Sun Franklin Bissett Canadian Equity - Investment Series F 1.00 - 1.00 Sun Life Granite Balanced - Protect Series F 1.00 (0.08) 0.92 Sun Franklin Bissett Canadian Equity - Investment Series O - - Sun Life Granite Balanced - Protect Series O - - Sun Franklin Bissett Canadian Eq Bundle Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser A 2.00 (0.09) 1.91 Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser E 2.00 (0.09) 1.91 Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser F 1.00 (0.09) 0.91 Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser O - -

Sun Franklin World Growth Sun Franklin World Growth - Investment Series A 2.00 - 2.00 Sun Franklin World Growth - Investment Series F 1.00 - 1.00

Sun Life Assurance Company of Canada

350 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Life Granite Balanced Growth Sun Life Granite Conservative Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Estate Series A 2.00 (0.09) 1.91 Estate Series A 2.00 (0.17) 1.83 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Estate Series E 2.00 (0.09) 1.91 Estate Series E 2.00 (0.17) 1.83 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Estate Series F 1.00 (0.09) 0.91 Estate Series F 1.00 (0.17) 0.83 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Estate Series O - - Estate Series O - - Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Investment Series A 2.00 (0.08) 1.92 Investment Series A 2.00 (0.17) 1.83 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Investment Series E 2.00 (0.08) 1.92 Investment Series E 2.00 (0.17) 1.83 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Investment Series F 1.00 (0.08) 0.92 Investment Series F 1.00 (0.17) 0.83 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Investment Series O - - Investment Series O - - Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Lifetime Advantage Series A 2.00 (0.12) 1.88 Lifetime Advantage Series A 2.00 (0.10) 1.90 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Lifetime Advantage Series E 2.00 (0.12) 1.88 Lifetime Advantage Series E 2.00 (0.10) 1.90 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Lifetime Advantage Series F 1.00 (0.12) 0.88 Lifetime Advantage Series F 1.00 (0.10) 0.90 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Lifetime Advantage Series O - - Lifetime Advantage Series O - - Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Protect Series A 2.00 - 2.00 Protect Series A 2.00 (0.29) 1.71 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Protect Series E 2.00 - 2.00 Protect Series E 2.00 (0.29) 1.71 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Protect Series F 1.00 - 1.00 Protect Series F 1.00 (0.29) 0.71 Sun Life Granite Balanced Growth - Sun Life Granite Conservative - Protect Series O - - Protect Series O - -

Sun Life Assurance Company of Canada

351 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Life Granite Enhanced Income Sun Life Granite Growth Sun Life Granite Enhanced Income - Sun Life Granite Growth - Estate Series A 2.00 (0.09) 1.91 Estate Series A 2.00 (0.04) 1.96 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Estate Series E 2.00 (0.09) 1.91 Estate Series E 2.00 (0.04) 1.96 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Estate Series F 1.00 (0.09) 0.91 Estate Series F 1.00 (0.04) 0.96 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Estate Series O - - Estate Series O - - Sun Life Granite Enhanced Income - Sun Life Granite Growth - Investment Series A 2.00 (0.08) 1.92 Investment Series A 2.00 (0.04) 1.96 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Investment Series E 2.00 (0.08) 1.92 Investment Series E 2.00 (0.04) 1.96 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Investment Series F 1.00 (0.08) 0.92 Investment Series F 1.00 (0.04) 0.96 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Investment Series O - - Investment Series O - - Sun Life Granite Enhanced Income - Sun Life Granite Growth - Lifetime Lifetime Advantage Series A 2.00 (0.07) 1.93 Advantage Series A 2.00 (0.07) 1.93 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Lifetime Lifetime Advantage Series E 2.00 (0.07) 1.93 Advantage Series E 2.00 (0.07) 1.93 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Lifetime Lifetime Advantage Series F 1.00 (0.07) 0.93 Advantage Series F 1.00 (0.07) 0.93 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Lifetime Lifetime Advantage Series O - - Advantage Series O - - Sun Life Granite Enhanced Income - Sun Life Granite Growth - Protect Series A 2.00 (0.08) 1.92 Protect Series A 2.00 - 2.00 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Protect Series E 2.00 (0.08) 1.92 Protect Series E 2.00 - 2.00 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Protect Series F 1.00 (0.08) 0.92 Protect Series F 1.00 - 1.00 Sun Life Granite Enhanced Income - Sun Life Granite Growth - Protect Series O - - Protect Series O - -

Sun Life Assurance Company of Canada

352 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Life Granite Income Sun Life Granite Moderate Sun Life Granite Income - Sun Life Granite Moderate - Estate Series A 2.00 (0.18) 1.82 Estate Series A 2.00 (0.18) 1.82 Sun Life Granite Income - Sun Life Granite Moderate - Estate Series E 2.00 (0.18) 1.82 Estate Series E 2.00 (0.18) 1.82 Sun Life Granite Income - Sun Life Granite Moderate - Estate Series F 1.00 (0.18) 0.82 Estate Series F 1.00 (0.18) 0.82 Sun Life Granite Income - Sun Life Granite Moderate - Estate Series O - - Estate Series O - - Sun Life Granite Income - Sun Life Granite Moderate - Investment Series A 2.00 (0.17) 1.83 Investment Series A 2.00 (0.17) 1.83 Sun Life Granite Income - Sun Life Granite Moderate - Investment Series E 2.00 (0.17) 1.83 Investment Series E 2.00 (0.17) 1.83 Sun Life Granite Income - Sun Life Granite Moderate - Investment Series F 1.00 (0.17) 0.83 Investment Series F 1.00 (0.17) 0.83 Sun Life Granite Income - Sun Life Granite Moderate - Investment Series O - - Investment Series O - - Sun Life Granite Income - Lifetime Sun Life Granite Moderate - Lifetime Advantage Series A 2.00 (0.13) 1.87 Advantage Series A 2.00 (0.13) 1.87 Sun Life Granite Income - Lifetime Sun Life Granite Moderate - Lifetime Advantage Series E 2.00 (0.13) 1.87 Advantage Series E 2.00 (0.13) 1.87 Sun Life Granite Income - Lifetime Sun Life Granite Moderate - Lifetime Advantage Series F 1.00 (0.13) 0.87 Advantage Series F 1.00 (0.13) 0.87 Sun Life Granite Income - Lifetime Sun Life Granite Moderate - Lifetime Advantage Series O - - Advantage Series O - - Sun Life Granite Income - Sun Life Granite Moderate - Protect Series A 2.00 (0.17) 1.83 Protect Series A 2.00 (0.20) 1.80 Sun Life Granite Income - Sun Life Granite Moderate - Protect Series E 2.00 (0.17) 1.83 Protect Series E 2.00 (0.20) 1.80 Sun Life Granite Income - Sun Life Granite Moderate - Protect Series F 1.00 (0.17) 0.83 Protect Series F 1.00 (0.20) 0.80 Sun Life Granite Income - Sun Life Granite Moderate - Protect Series O - - Protect Series O - -

Sun Life Assurance Company of Canada

353 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun MFS Canadian Bond Sun MFS Canadian Equity Growth Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Estate Series A 1.50 - 1.50 Estate Series A 2.00 (0.02) 1.98 Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Estate Series E 1.50 - 1.50 Estate Series E 2.00 (0.02) 1.98 Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Estate Series F 1.00 - 1.00 Estate Series F 1.00 (0.02) 0.98 Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Estate Series O - - Estate Series O - - Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Investment Series A 1.50 - 1.50 Investment Series A 2.00 (0.02) 1.98 Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Investment Series E 1.50 - 1.50 Investment Series E 2.00 (0.02) 1.98 Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Investment Series F 1.00 - 1.00 Investment Series F 1.00 (0.02) 0.98 Sun MFS Canadian Bond - Sun MFS Canadian Equity Growth - Investment Series O - - Investment Series O - - Sun MFS Canadian Bond - Lifetime Advantage Series A 1.50 - 1.50 Sun MFS Canadian Equity Growth Bundle Sun MFS Canadian Bond - Lifetime Sun MFS Canadian Eq Growth Bundle - Advantage Series E 1.50 - 1.50 Lifetime Advantage Ser A 2.00 (0.18) 1.82 Sun MFS Canadian Bond - Lifetime Sun MFS Canadian Eq Growth Bundle - Advantage Series F 1.00 - 1.00 Lifetime Advantage Ser E 2.00 (0.18) 1.82 Sun MFS Canadian Bond - Lifetime Sun MFS Canadian Eq Growth Bundle - Advantage Series O - - Lifetime Advantage Ser F 1.00 (0.18) 0.82 Sun MFS Canadian Bond - Sun MFS Canadian Eq Growth Bundle - Protect Series A 1.50 - 1.50 Lifetime Advantage Ser O - - Sun MFS Canadian Bond - Protect Series E 1.50 - 1.50 Sun MFS Canadian Bond - Protect Series F 1.00 - 1.00 Sun MFS Canadian Bond - Protect Series O - -

Sun Life Assurance Company of Canada

354 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun MFS Canadian Equity Value Sun MFS Dividend Income Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Estate Series A 2.00 (0.07) 1.93 Estate Series A 2.00 (0.02) 1.98 Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Estate Series E 2.00 (0.07) 1.93 Estate Series E 2.00 (0.02) 1.98 Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Estate Series F 1.00 (0.07) 0.93 Estate Series F 1.00 (0.02) 0.98 Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Estate Series O - - Estate Series O - - Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Investment Series A 2.00 (0.06) 1.94 Investment Series A 2.00 (0.02) 1.98 Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Investment Series E 2.00 (0.06) 1.94 Investment Series E 2.00 (0.02) 1.98 Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Investment Series F 1.00 (0.06) 0.94 Investment Series F 1.00 (0.02) 0.98 Sun MFS Canadian Equity Value - Sun MFS Dividend Income - Investment Series O - - Investment Series O - - Sun MFS Canadian Equity Value - Protect Series A 2.00 (0.14) 1.86 Sun MFS Global Growth Sun MFS Canadian Equity Value - Sun MFS Global Growth - Protect Series E 2.00 (0.14) 1.86 Estate Series A 2.00 - 2.00 Sun MFS Canadian Equity Value - Sun MFS Global Growth - Protect Series F 1.00 (0.14) 0.86 Estate Series E 2.00 - 2.00 Sun MFS Canadian Equity Value - Sun MFS Global Growth - Protect Series O - - Estate Series F 1.00 - 1.00 Sun MFS Global Growth - Sun MFS Canadian Equity Value Bundle Estate Series O - - Sun MFS Canadian Eq Value Bundle - Sun MFS Global Growth - Lifetime Advantage Ser A 2.00 (0.27) 1.73 Investment Series A 2.00 - 2.00 Sun MFS Canadian Eq Value Bundle - Sun MFS Global Growth - Lifetime Advantage Ser E 2.00 (0.27) 1.73 Investment Series E 2.00 - 2.00 Sun MFS Canadian Eq Value Bundle - Sun MFS Global Growth - Lifetime Advantage Ser F 1.00 (0.27) 0.73 Investment Series F 1.00 - 1.00 Sun MFS Canadian Eq Value Bundle - Sun MFS Global Growth - Lifetime Advantage Ser O - - Investment Series O - -

Sun Life Assurance Company of Canada

355 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun MFS Global Total Return Sun MFS Global Value Sun MFS Global Total Return - Sun MFS Global Value - Estate Series A 2.00 - 2.00 Estate Series A 2.00 (0.11) 1.89 Sun MFS Global Value - Estate Series E 2.00 - 2.00 Sun MFS Global Total Return - Sun MFS Global Value - Estate Series F 1.00 - 1.00 Estate Series E 2.00 (0.11) 1.89 Sun MFS Global Value - Estate Series O - - Sun MFS Global Total Return - Estate Series F 1.00 (0.11) 0.89 Sun MFS Global Value - Investment Series A 2.00 - 2.00 Sun MFS Global Total Return - Estate Series O - - Sun MFS Global Value - Investment Series E 2.00 - 2.00 Sun MFS Global Total Return - Investment Series A 2.00 (0.10) 1.90 Sun MFS Global Value - Investment Series F 1.00 - 1.00 Sun MFS Global Total Return - Investment Series E 2.00 (0.10) 1.90 Sun MFS Global Value - Investment Series O - - Sun MFS Global Total Return - Investment Series F 1.00 (0.10) 0.90 Sun MFS Global Value - Protect Series A 2.00 - 2.00 Sun MFS Global Total Return - Investment Series O - - Sun MFS Global Value - Protect Series E 2.00 - 2.00 Sun MFS Global Total Return - Lifetime Advantage Series A 2.00 (0.09) 1.91 Sun MFS Global Value - Protect Series F 1.00 - 1.00 Sun MFS Global Total Return - Lifetime Advantage Series E 2.00 (0.09) 1.91 Sun MFS Global Value - Protect Series O - - Sun MFS Global Total Return - Lifetime Advantage Series F 1.00 (0.09) 0.91 Sun MFS Global Value Bundle Sun MFS Global Total Return - Lifetime Advantage Series O - - Sun MFS Global Value Bundle - Lifetime Advantage Series A 2.00 (0.16) 1.84 Sun MFS Global Total Return - Protect Series A 2.00 (0.11) 1.89 Sun MFS Global Value Bundle - Lifetime Advantage Series E 2.00 (0.16) 1.84 Sun MFS Global Total Return - Protect Series E 2.00 (0.11) 1.89 Sun MFS Global Value Bundle - Lifetime Advantage Series F 1.00 (0.16) 0.84 Sun MFS Global Total Return - Protect Series F 1.00 (0.11) 0.89 Sun MFS Global Value Bundle - Lifetime Advantage Series O - - Sun MFS Global Total Return - Protect Series O - - Sun MFS International Growth Sun MFS International Growth - Estate Series A 2.00 - 2.00 Sun MFS International Growth - Estate Series E 2.00 - 2.00 Sun MFS International Growth - Estate Series F 1.00 - 1.00 Sun MFS International Growth - Estate Series O - - Sun MFS International Growth - Investment Series A 2.00 - 2.00 Sun MFS International Growth - Investment Series E 2.00 - 2.00 Sun MFS International Growth - Investment Series F 1.00 - 1.00 Sun MFS International Growth - Investment Series O - -

Sun Life Assurance Company of Canada

356 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun MFS International Growth Bundle Sun MFS Monthly Income Sun MFS International Grow Bundle - Sun MFS Monthly Income - Lifetime Advantage Ser A 2.00 (0.09) 1.91 Estate Series A 2.00 (0.24) 1.76 Sun MFS International Grow Bundle - Sun MFS Monthly Income - Lifetime Advantage Ser E 2.00 (0.09) 1.91 Estate Series E 2.00 (0.24) 1.76 Sun MFS International Grow Bundle - Sun MFS Monthly Income - Lifetime Advantage Ser F 1.00 (0.09) 0.91 Estate Series F 1.00 (0.24) 0.76 Sun MFS International Grow Bundle - Sun MFS Monthly Income - Lifetime Advantage Ser O - - Estate Series O - - Sun MFS Monthly Income - Sun MFS International Value Investment Series A 2.00 (0.24) 1.76 Sun MFS International Value - Sun MFS Monthly Income - Estate Series A 2.00 - 2.00 Investment Series E 2.00 (0.24) 1.76 Sun MFS International Value - Sun MFS Monthly Income - Estate Series E 2.00 - 2.00 Investment Series F 1.00 (0.24) 0.76 Sun MFS International Value - Sun MFS Monthly Income - Estate Series F 1.00 - 1.00 Investment Series O - - Sun MFS International Value - Estate Series O - - Sun MFS US Equity Sun MFS International Value - Sun MFS US Equity - Estate Series A 2.00 (0.06) 1.94 Investment Series A 2.00 - 2.00 Sun MFS US Equity - Estate Series E 2.00 (0.06) 1.94 Sun MFS International Value - Sun MFS US Equity - Estate Series F 1.00 (0.06) 0.94 Investment Series E 2.00 - 2.00 Sun MFS US Equity - Estate Series O - - Sun MFS International Value - Investment Series F 1.00 - 1.00 Sun MFS US Equity - Investment Series A 2.00 (0.06) 1.94 Sun MFS International Value - Investment Series O - - Sun MFS US Equity - Investment Series E 2.00 (0.06) 1.94 Sun MFS International Value Bundle Sun MFS US Equity - Sun MFS International Val Bundle - Investment Series F 1.00 (0.06) 0.94 Lifetime Advantage Ser A 2.00 (0.09) 1.91 Sun MFS US Equity - Sun MFS International Val Bundle - Investment Series O - - Lifetime Advantage Ser E 2.00 (0.09) 1.91 Sun MFS US Equity Bundle Sun MFS International Val Bundle - Lifetime Advantage Ser F 1.00 (0.09) 0.91 Sun MFS US Equity Bundle - Lifetime Advantage Series A 2.00 (0.21) 1.79 Sun MFS International Val Bundle - Lifetime Advantage Ser O - - Sun MFS US Equity Bundle - Lifetime Advantage Series E 2.00 (0.21) 1.79 Sun MFS US Equity Bundle - Lifetime Advantage Series F 1.00 (0.21) 0.79 Sun MFS US Equity Bundle - Lifetime Advantage Series O - -

Sun Life Assurance Company of Canada

357 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun MFS US Growth Sun Money Market Sun MFS US Growth - Estate Series A 2.00 - 2.00 Sun Money Market - Estate Series A 0.50 - 0.50 Sun MFS US Growth - Estate Series E 2.00 - 2.00 Sun Money Market - Estate Series E 0.50 - 0.50 Sun MFS US Growth - Estate Series F 1.00 - 1.00 Sun Money Market - Estate Series F 0.30 - 0.30 Sun MFS US Growth - Estate Series O - - Sun Money Market - Estate Series O - - Sun MFS US Growth - Sun Money Market - Investment Series A 2.00 - 2.00 Investment Series A 0.50 - 0.50 Sun MFS US Growth - Sun Money Market - Investment Series E 2.00 - 2.00 Investment Series E 0.50 - 0.50 Sun MFS US Growth - Sun Money Market - Investment Series F 1.00 - 1.00 Investment Series F 0.30 - 0.30 Sun MFS US Growth - Sun Money Market - Investment Series O - - Investment Series O - - Sun Money Market - Lifetime Sun MFS US Value Advantage Series A 0.50 - 0.50 Sun MFS US Value - Estate Series A 2.00 (0.06) 1.94 Sun Money Market - Lifetime Sun MFS US Value - Estate Series E 2.00 (0.06) 1.94 Advantage Series E 0.50 - 0.50 Sun MFS US Value - Estate Series F 1.00 (0.06) 0.94 Sun Money Market - Lifetime Advantage Series F 0.30 - 0.30 Sun MFS US Value - Estate Series O - - Sun Money Market - Lifetime Sun MFS US Value - Advantage Series O - - Investment Series A 2.00 (0.06) 1.94 Sun Money Market - Protect Series A 0.50 - 0.50 Sun MFS US Value - Investment Series E 2.00 (0.06) 1.94 Sun Money Market - Protect Series E 0.50 - 0.50 Sun MFS US Value - Sun Money Market - Protect Series F 0.30 - 0.30 Investment Series F 1.00 (0.06) 0.94 Sun Money Market - Protect Series O - - Sun MFS US Value - Investment Series O - - Sun NWQ Flexible Income Sun MFS US Value - Protect Series A 2.00 (0.10) 1.90 Sun NWQ Flexible Income - Estate Series A 1.50 - 1.50 Sun MFS US Value - Protect Series E 2.00 (0.10) 1.90 Sun NWQ Flexible Income - Sun MFS US Value - Protect Series F 1.00 (0.10) 0.90 Estate Series E 1.50 - 1.50 Sun MFS US Value - Protect Series O - - Sun NWQ Flexible Income - Estate Series F 1.00 - 1.00 Sun MFS US Value Bundle Sun NWQ Flexible Income - Sun MFS US Value Bundle - Lifetime Estate Series O - - Advantage Series A 2.00 (0.26) 1.74 Sun NWQ Flexible Income - Sun MFS US Value Bundle - Lifetime Investment Series A 1.50 - 1.50 Advantage Series E 2.00 (0.26) 1.74 Sun NWQ Flexible Income - Sun MFS US Value Bundle - Lifetime Investment Series E 1.50 - 1.50 Advantage Series F 1.00 (0.26) 0.74 Sun NWQ Flexible Income - Sun MFS US Value Bundle - Lifetime Investment Series F 1.00 - 1.00 Advantage Series O - - Sun NWQ Flexible Income - Investment Series O - -

Sun Life Assurance Company of Canada

358 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun PH&N Short Term Bond and Mortgage Sun Sentry Conservative Balanced Sun PH&N Short Term Bond and Sun Sentry Conservative Balanced - Mortgage - Estate Series A 1.50 - 1.50 Estate Series A 2.00 (0.11) 1.89 Sun PH&N Short Term Bond and Sun Sentry Conservative Balanced - Mortgage - Estate Series F 1.00 - 1.00 Estate Series E 2.00 (0.11) 1.89 Sun PH&N Short Term Bond and Sun Sentry Conservative Balanced - Mortgage - Investment Series A 1.50 - 1.50 Estate Series F 1.00 (0.11) 0.89 Sun PH&N Short Term Bond and Sun Sentry Conservative Balanced - Mortgage - Investment Series F 1.00 - 1.00 Estate Series O - - Sun PH&N Short Term Bond and Sun Sentry Conservative Balanced - Mortgage - Lifetime Adv Ser A 1.50 - 1.50 Investment Series A 2.00 (0.10) 1.90 Sun PH&N Short Term Bond and Sun Sentry Conservative Balanced - Mortgage - Lifetime Adv Ser F 1.00 - 1.00 Investment Series E 2.00 (0.10) 1.90 Sun Sentry Conservative Balanced - Sun RBC Global High Yield Bond Investment Series F 1.00 (0.10) 0.90 Sun RBC Global High Yield Bond - Sun Sentry Conservative Balanced - Estate Series A 1.50 - 1.50 Investment Series O - - Sun RBC Global High Yield Bond - Sun Sentry Conservative Balanced - Estate Series F 1.00 - 1.00 Lifetime Advantage Ser A 2.00 (0.09) 1.91 Sun RBC Global High Yield Bond - Sun Sentry Conservative Balanced - Investment Series A 1.50 - 1.50 Lifetime Advantage Ser E 2.00 (0.09) 1.91 Sun RBC Global High Yield Bond - Sun Sentry Conservative Balanced - Investment Series F 1.00 - 1.00 Lifetime Advantage Ser F 1.00 (0.09) 0.91

Sun RBC North American Value Sun Sentry Conservative Balanced - Lifetime Advantage Ser O - - Sun RBC North American Value - Estate Series A 2.00 - 2.00 Sun Sentry Global Mid Cap Sun RBC North American Value - Sun Sentry Global Mid Cap - Estate Series F 1.00 - 1.00 Investment Series A 2.00 - 2.00 Sun RBC North American Value - Sun Sentry Global Mid Cap - Investment Series A 2.00 - 2.00 Investment Series E 2.00 - 2.00 Sun RBC North American Value - Sun Sentry Global Mid Cap - Investment Series F 1.00 - 1.00 Investment Series F 1.00 - 1.00

Sun RBC North American Value Bundle Sun Sentry Global Mid Cap - Investment Series O - - Sun RBC North American Val Bundle - Lifetime Advantage Ser A 2.00 (0.13) 1.87 Sun RBC North American Val Bundle - Lifetime Advantage Ser F 1.00 (0.13) 0.87

Sun Schroder Emerging Markets Sun Schroder Emerging Markets - Investment Series A 2.00 - 2.00 Sun Schroder Emerging Markets - Investment Series E 2.00 - 2.00 Sun Schroder Emerging Markets - Investment Series F 1.00 - 1.00 Sun Schroder Emerging Markets - Investment Series O - -

Sun Life Assurance Company of Canada

359 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Management Fee Management Management Management Fee Management Management before waiver Fee waived Fee before waiver Fee waived Fee % % % % % % Sun Sentry Infrastructure Sun Sionna Canadian Small Cap Equity Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Estate Series A 2.00 - 2.00 Estate Series A 2.00 - 2.00 Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Estate Series E 2.00 - 2.00 Estate Series E 2.00 - 2.00 Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Estate Series F 1.00 - 1.00 Estate Series F 1.00 - 1.00 Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Estate Series O - - Estate Series O - - Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Investment Series A 2.00 - 2.00 Investment Series A 2.00 - 2.00 Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Investment Series E 2.00 - 2.00 Investment Series E 2.00 - 2.00 Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Investment Series F 1.00 - 1.00 Investment Series F 1.00 - 1.00 Sun Sentry Infrastructure - Sun Sionna Canadian Small Cap Equity - Investment Series O - - Investment Series O - -

Sun Sentry Value Sun Strategic Income Sun Sentry Value - Estate Series A 2.00 - 2.00 Sun Strategic Income - Income Series A 1.50 - 1.50 Sun Sentry Value - Estate Series E 2.00 - 2.00 Sun Strategic Income - Income Series F 1.00 - 1.00 Sun Sentry Value - Estate Series F 1.00 - 1.00

Sun Sentry Value - Estate Series O - - Sun TD Canadian Bond Sun Sentry Value - Investment Series A 2.00 - 2.00 Sun TD Canadian Bond - Sun Sentry Value - Investment Series E 2.00 - 2.00 Estate Series A 1.50 - 1.50 Sun Sentry Value - Investment Series F 1.00 - 1.00 Sun TD Canadian Bond - Estate Series F 1.00 - 1.00 Sun Sentry Value - Sun TD Canadian Bond - Investment Series O - - Investment Series A 1.50 - 1.50 Sun TD Canadian Bond - Sun Sentry Value Bundle Investment Series F 1.00 - 1.00 Sun Sentry Value Bundle - Lifetime Sun TD Canadian Bond - Lifetime Advantage Series A 2.00 (0.09) 1.91 Advantage Series A 1.50 - 1.50 Sun Sentry Value Bundle - Lifetime Sun TD Canadian Bond - Lifetime Advantage Series E 2.00 (0.09) 1.91 Advantage Series F 1.00 - 1.00 Sun Sentry Value Bundle - Lifetime Advantage Series F 1.00 (0.09) 0.91 Sun TD Dividend Income Sun Sentry Value Bundle - Lifetime Sun TD Dividend Income - Advantage Series O - - Estate Series A 2.00 - 2.00 Sun TD Dividend Income - Estate Series F 1.00 - 1.00 Sun TD Dividend Income - Investment Series A 2.00 - 2.00 Sun TD Dividend Income - Investment Series F 1.00 - 1.00 Sun TD Dividend Income - Lifetime Advantage Series A 2.00 (0.01) 1.99 Sun TD Dividend Income - Lifetime Advantage Series F 1.00 (0.01) 0.99

Sun Life Assurance Company of Canada

360 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 Management Fee Management Management before waiver Fee waived Fee % % % Sun TD Real Return Bond Sun TD Real Return Bond - Estate Series A 1.50 - 1.50 Sun TD Real Return Bond - Estate Series F 1.00 - 1.00 Sun TD Real Return Bond - Investment Series A 1.50 - 1.50 Sun TD Real Return Bond - Investment Series F 1.00 - 1.00

Sun Templeton Global Bond Sun Templeton Global Bond - Investment Series A 1.50 - 1.50 Sun Templeton Global Bond - Investment Series E 1.50 - 1.50 Sun Templeton Global Bond - Investment Series F 1.00 - 1.00 Sun Templeton Global Bond - Investment Series O - -

Sun Trimark Sun Trimark - Investment Series A 2.00 - 2.00 Sun Trimark - Investment Series F 1.00 - 1.00

Sun Trimark Canadian Sun Trimark Canadian - Estate Series A 2.00 - 2.00 Sun Trimark Canadian - Estate Series E 2.00 - 2.00 Sun Trimark Canadian - Estate Series F 1.00 - 1.00 Sun Trimark Canadian - Estate Series O - - Sun Trimark Canadian - Investment Series A 2.00 - 2.00 Sun Trimark Canadian - Investment Series E 2.00 - 2.00 Sun Trimark Canadian - Investment Series F 1.00 - 1.00 Sun Trimark Canadian - Investment Series O - - Note: Series O management fees are charged outside of the Fund.

Sun Life Assurance Company of Canada

361 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

The Funds pay an insurance fee to the Company with respect to the guarantees provided for the contributions to a Fund under the contract. The insurance fees are accrued daily and are paid monthly based on the NAV of each series of the Fund. The current insurance fee, excluding GST/HST and other applicable taxes if any, is set out in the table below. The Company may increase this fee, without notice, up to the insurance fee limit, which is set out in the contract. Any increase above the insurance fee limit will be considered a fundamental change.

2015 2015 Insurance Fee % Insurance Fee % Sun Beutel Goodman Canadian Bond Sun BlackRock Canadian Composite Equity Sun Beutel Goodman Canadian Bond - Estate Series A 0.30 Sun BlackRock Cdn Composite Equity - Estate Series A 0.70 Sun Beutel Goodman Canadian Bond - Estate Series E 0.30 Sun BlackRock Cdn Composite Equity - Estate Series E 0.70 Sun Beutel Goodman Canadian Bond - Estate Series F 0.30 Sun BlackRock Cdn Composite Equity - Estate Series F 0.70 Sun Beutel Goodman Canadian Bond - Estate Series O 0.30 Sun BlackRock Cdn Composite Equity - Estate Series O 0.70 Sun Beutel Goodman Canadian Bond - Investment Series A 0.15 Sun BlackRock Cdn Composite Equity - Investment Series A 0.30 Sun Beutel Goodman Canadian Bond - Investment Series E 0.15 Sun BlackRock Cdn Composite Equity - Investment Series E 0.30 Sun Beutel Goodman Canadian Bond - Investment Series F 0.15 Sun BlackRock Cdn Composite Equity - Investment Series F 0.30 Sun Beutel Goodman Canadian Bond - Investment Series O 0.15 Sun BlackRock Cdn Composite Equity - Investment Series O 0.30 Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser A 1.00 Sun BlackRock Cdn Composite Equity - Protect Series A 1.35 Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser E 1.00 Sun BlackRock Cdn Composite Equity - Protect Series E 1.35 Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser F 1.00 Sun BlackRock Cdn Composite Equity - Protect Series F 1.35 Sun Beutel Goodman Canadian Bond - Lifetime Advantage Ser O 1.00 Sun BlackRock Cdn Composite Equity - Protect Series O 1.35 Sun Beutel Goodman Canadian Bond - Protect Series A 0.70 Sun BlackRock Canadian Equity Sun Beutel Goodman Canadian Bond - Protect Series E 0.70 Sun BlackRock Canadian Equity - Estate Series A 0.70 Sun Beutel Goodman Canadian Bond - Protect Series F 0.70 Sun BlackRock Canadian Equity - Estate Series E 0.70 Sun Beutel Goodman Canadian Bond - Protect Series O 0.70 Sun BlackRock Canadian Equity - Estate Series F 0.70 Sun BlackRock Canadian Balanced Sun BlackRock Canadian Equity - Estate Series O 0.70 Sun BlackRock Canadian Balanced - Estate Series A 0.55 Sun BlackRock Canadian Equity - Investment Series A 0.30 Sun BlackRock Canadian Balanced - Estate Series E 0.55 Sun BlackRock Canadian Equity - Investment Series E 0.30 Sun BlackRock Canadian Balanced - Estate Series F 0.55 Sun BlackRock Canadian Equity - Investment Series F 0.30 Sun BlackRock Canadian Balanced - Estate Series O 0.55 Sun BlackRock Canadian Equity - Investment Series O 0.30 Sun BlackRock Canadian Balanced - Investment Series A 0.25 Sun BlackRock Canadian Equity - Protect Series A 1.35 Sun BlackRock Canadian Balanced - Investment Series E 0.25 Sun BlackRock Canadian Equity - Protect Series E 1.35 Sun BlackRock Canadian Balanced - Investment Series F 0.25 Sun BlackRock Canadian Equity - Protect Series F 1.35 Sun BlackRock Canadian Balanced - Investment Series O 0.25 Sun BlackRock Canadian Equity - Protect Series O 1.35 Sun BlackRock Canadian Balanced - Lifetime Advantage Ser A 1.50 Sun BlackRock Canadian Equity Bundle Sun BlackRock Canadian Balanced - Lifetime Advantage Ser E 1.50 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser A 1.50 Sun BlackRock Canadian Balanced - Lifetime Advantage Ser F 1.50 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser E 1.50 Sun BlackRock Canadian Balanced - Lifetime Advantage Ser O 1.50 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser F 1.50 Sun BlackRock Canadian Balanced - Protect Series A 1.10 Sun BlackRock Canadian Equ Bundle - Lifetime Advantage Ser O 1.50 Sun BlackRock Canadian Balanced - Protect Series E 1.10 Sun BlackRock Canadian Balanced - Protect Series F 1.10 Sun BlackRock Canadian Composite Eq Bundle Sun BlackRock Canadian Balanced - Protect Series O 1.10 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr A 1.50 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr E 1.50 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr F 1.50 Sun BlackRock Cdn Composite Eq Bundle - LT Adv Sr O 1.50

Sun Life Assurance Company of Canada

362 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun BlackRock Cdn Universe Bond Sun CI Signature Diversified Yield II Sun BlackRock Cdn Universe Bond - Estate Series A 0.30 Sun CI Signature Diversified Yield II - Estate Series A 0.55 Sun BlackRock Cdn Universe Bond - Estate Series E 0.30 Sun CI Signature Diversified Yield II - Estate Series F 0.55 Sun BlackRock Cdn Universe Bond - Estate Series F 0.30 Sun CI Signature Diversified Yield II - Investment Series A 0.20 Sun BlackRock Cdn Universe Bond - Estate Series O 0.30 Sun CI Signature Diversified Yield II - Investment Series F 0.20 Sun BlackRock Cdn Universe Bond - Investment Series A 0.15 Sun CI Signature Diversified Yield II - Lifetime Ad Series A 1.45 Sun BlackRock Cdn Universe Bond - Investment Series E 0.15 Sun CI Signature Diversified Yield II - Lifetime Ad Series F 1.45 Sun BlackRock Cdn Universe Bond - Investment Series F 0.15 Sun CI Signature High Income Sun BlackRock Cdn Universe Bond - Investment Series O 0.15 Sun CI Signature High Income - Estate Series A 0.55 Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser A 1.00 Sun CI Signature High Income - Estate Series F 0.55 Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser E 1.00 Sun CI Signature High Income - Investment Series A 0.20 Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser F 1.00 Sun CI Signature High Income - Investment Series F 0.20 Sun BlackRock Cdn Universe Bond - Lifetime Advantage Ser O 1.00 Sun BlackRock Cdn Universe Bond - Protect Series A 0.70 Sun CI Signature Income & Growth Sun BlackRock Cdn Universe Bond - Protect Series E 0.70 Sun CI Signature Income & Growth - Estate Series A 0.55 Sun BlackRock Cdn Universe Bond - Protect Series F 0.70 Sun CI Signature Income & Growth - Estate Series F 0.55 Sun BlackRock Cdn Universe Bond - Protect Series O 0.70 Sun CI Signature Income & Growth - Investment Series A 0.25 Sun CI Signature Income & Growth - Investment Series F 0.25 Sun Canadian Balanced Bundle Sun CI Signature Income & Growth - Lifetime Ad Series A 1.50 Sun Canadian Balanced Bundle - Lifetime Advantage Series A 1.50 Sun CI Signature Income & Growth - Lifetime Ad Series F 1.50 Sun Canadian Balanced Bundle - Lifetime Advantage Series F 1.50 Sun Daily Interest Sun CI Cambridge Canadian Equity Sun Daily Interest - Estate Series A 0.15 Sun CI Cambridge Canadian Equity - Estate Series A 0.70 Sun Daily Interest - Estate Series F 0.15 Sun CI Cambridge Canadian Equity - Estate Series F 0.70 Sun Daily Interest - Investment Series A 0.10 Sun CI Cambridge Canadian Equity - Investment Series A 0.30 Sun Daily Interest - Investment Series F 0.10 Sun CI Cambridge Canadian Equity - Investment Series F 0.30 Sun Daily Interest - Lifetime Advantage Series A 0.20 Sun CI Cambridge Cdn Asset Allocation Sun Daily Interest - Lifetime Advantage Series F 0.20 Sun CI Cambridge Cdn Asset Allocation - Estate Series A 0.65 Sun Daily Interest - Protect Series A 0.20 Sun CI Cambridge Cdn Asset Allocation - Estate Series F 0.65 Sun Daily Interest - Protect Series F 0.20 Sun CI Cambridge Cdn Asset Allocation - Inv Ser A 0.25 Sun Dollar Cost Average Daily Interest Sun CI Cambridge Cdn Asset Allocation - Inv Ser F 0.25 Sun Dollar Cost Average Daily Interest - Estate Series A 0.15 Sun CI Cambridge Global Equity Sun Dollar Cost Average Daily Interest - Estate Series F 0.15 Sun CI Cambridge Global Equity - Estate Series A 0.75 Sun Dollar Cost Average Daily Interest - Investment Series A 0.10 Sun CI Cambridge Global Equity - Estate Series F 0.75 Sun Dollar Cost Average Daily Interest - Investment Series F 0.10 Sun CI Cambridge Global Equity - Investment Series A 0.30 Sun Dollar Cost Average Daily Interest - Lifetime Adv Ser A 0.20 Sun CI Cambridge Global Equity - Investment Series F 0.30 Sun Dollar Cost Average Daily Interest - Lifetime Adv Ser F 0.20 Sun Dollar Cost Average Daily Interest - Protect Series A 0.20 Sun CI Cambridge/MFS Canadian Bundle Sun Dollar Cost Average Daily Interest - Protect Series F 0.20 Sun CI Cambridge/MFS Cdn Bundle - Lifetime Advantage Ser A 1.50 Sun CI Cambridge/MFS Cdn Bundle - Lifetime Advantage Ser F 1.50

Sun CI Cambridge/MFS Global Bundle Sun CI Cambridge/MFS Global Bundle - Lifetime Advantage Ser A 1.50 Sun CI Cambridge/MFS Global Bundle - Lifetime Advantage Ser F 1.50

Sun Life Assurance Company of Canada

363 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun Dynamic American Value Sun Fidelity Income Allocation Sun Dynamic American Value - Investment Series A 0.30 Sun Fidelity Income Allocation - Estate Series A 0.50 Sun Dynamic American Value - Investment Series E 0.30 Sun Fidelity Income Allocation - Estate Series F 0.50 Sun Dynamic American Value - Investment Series F 0.30 Sun Fidelity Income Allocation - Investment Series A 0.20 Sun Dynamic American Value - Investment Series O 0.30 Sun Fidelity Income Allocation - Investment Series F 0.20 Sun Fidelity Income Allocation - Lifetime Adv Series A 1.50 Sun Dynamic Equity Income Sun Fidelity Income Allocation - Lifetime Adv Series F 1.50 Sun Dynamic Equity Income - Estate Series A 0.70 Sun Dynamic Equity Income - Estate Series E 0.70 Sun Fidelity Monthly Income Sun Dynamic Equity Income - Estate Series F 0.70 Sun Fidelity Monthly Income - Estate Series A 0.55 Sun Dynamic Equity Income - Estate Series O 0.70 Sun Fidelity Monthly Income - Estate Series F 0.55 Sun Dynamic Equity Income - Investment Series A 0.30 Sun Fidelity Monthly Income - Investment Series A 0.20 Sun Dynamic Equity Income - Investment Series E 0.30 Sun Fidelity Monthly Income - Investment Series F 0.20 Sun Dynamic Equity Income - Investment Series F 0.30 Sun Fidelity Monthly Income - Lifetime Advantage Series A 1.50 Sun Dynamic Equity Income - Investment Series O 0.30 Sun Fidelity Monthly Income - Lifetime Advantage Series F 1.50

Sun Dynamic Strategic Yield Sun Fidelity NorthStar Sun Dynamic Strategic Yield - Estate Series A 0.65 Sun Fidelity NorthStar - Investment Series A 0.30 Sun Dynamic Strategic Yield - Estate Series E 0.65 Sun Fidelity NorthStar - Investment Series F 0.30 Sun Dynamic Strategic Yield - Estate Series F 0.65 Sun Fidelity True North Sun Dynamic Strategic Yield - Estate Series O 0.65 Sun Fidelity True North - Estate Series A 0.70 Sun Dynamic Strategic Yield - Investment Series A 0.25 Sun Fidelity True North - Estate Series F 0.70 Sun Dynamic Strategic Yield - Investment Series E 0.25 Sun Fidelity True North - Investment Series A 0.30 Sun Dynamic Strategic Yield - Investment Series F 0.25 Sun Fidelity True North - Investment Series F 0.30 Sun Dynamic Strategic Yield - Investment Series O 0.25 Sun Fiera Global Equity Sun Estate Settlement Sun Fiera Global Equity - Estate Series A 0.75 Sun Estate Settlement - Estate Series A 0.10 Sun Fiera Global Equity - Estate Series F 0.75 Sun Estate Settlement - Estate Series F 0.10 Sun Fiera Global Equity - Investment Series A 0.30 Sun Estate Settlement - Income Series A 0.10 Sun Fiera Global Equity - Investment Series F 0.30 Sun Estate Settlement - Income Series F 0.10 Sun Estate Settlement - Investment Series A 0.10 Sun Fiera US Equity Sun Estate Settlement - Investment Series F 0.10 Sun Fiera US Equity - Investment Series A 0.30 Sun Estate Settlement - Lifetime Advantage Series A 0.10 Sun Fiera US Equity - Investment Series F 0.30 Sun Estate Settlement - Lifetime Advantage Series F 0.10 Sun Franklin Bissett Canadian Equity Sun Estate Settlement - Protect Series A 0.10 Sun Franklin Bissett Canadian Equity - Estate Series A 0.70 Sun Estate Settlement - Protect Series F 0.10 Sun Franklin Bissett Canadian Equity - Estate Series E 0.70 Sun Fidelity Floating Rate High Income Sun Franklin Bissett Canadian Equity - Estate Series F 0.70 Sun Fidelity Floating Rate High Income - Estate Series A 0.45 Sun Franklin Bissett Canadian Equity - Estate Series O 0.70 Sun Fidelity Floating Rate High Income - Estate Series F 0.45 Sun Franklin Bissett Canadian Equity - Investment Series A 0.30 Sun Fidelity Floating Rate High Income - Investment Series A 0.15 Sun Franklin Bissett Canadian Equity - Investment Series E 0.30 Sun Fidelity Floating Rate High Income - Investment Series F 0.15 Sun Franklin Bissett Canadian Equity - Investment Series F 0.30 Sun Franklin Bissett Canadian Equity - Investment Series O 0.30

Sun Life Assurance Company of Canada

364 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun Franklin Bissett Canadian Eq Bundle Sun Life Granite Conservative Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser A 1.50 Sun Life Granite Conservative - Estate Series A 0.50 Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser E 1.50 Sun Life Granite Conservative - Estate Series E 0.50 Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser F 1.50 Sun Life Granite Conservative - Estate Series F 0.50 Sun Franklin Bissett Cdn Eq Bundle - Lifetime Adv Ser O 1.50 Sun Life Granite Conservative - Estate Series O 0.50 Sun Life Granite Conservative - Investment Series A 0.20 Sun Franklin World Growth Sun Life Granite Conservative - Investment Series E 0.20 Sun Franklin World Growth - Investment Series A 0.30 Sun Life Granite Conservative - Investment Series F 0.20 Sun Franklin World Growth - Investment Series F 0.30 Sun Life Granite Conservative - Investment Series O 0.20 Sun Life Granite Balanced Sun Life Granite Conservative - Lifetime Advantage Series A 1.30 Sun Life Granite Balanced - Estate Series A 0.55 Sun Life Granite Conservative - Lifetime Advantage Series E 1.30 Sun Life Granite Balanced - Estate Series E 0.55 Sun Life Granite Conservative - Lifetime Advantage Series F 1.30 Sun Life Granite Balanced - Estate Series F 0.55 Sun Life Granite Conservative - Lifetime Advantage Series O 1.30 Sun Life Granite Balanced - Estate Series O 0.55 Sun Life Granite Conservative - Protect Series A 0.95 Sun Life Granite Balanced - Investment Series A 0.25 Sun Life Granite Conservative - Protect Series E 0.95 Sun Life Granite Balanced - Investment Series E 0.25 Sun Life Granite Conservative - Protect Series F 0.95 Sun Life Granite Balanced - Investment Series F 0.25 Sun Life Granite Conservative - Protect Series O 0.95 Sun Life Granite Balanced - Investment Series O 0.25 Sun Life Granite Enhanced Income Sun Life Granite Balanced - Lifetime Advantage Series A 1.50 Sun Life Granite Enhanced Income - Estate Series A 0.55 Sun Life Granite Balanced - Lifetime Advantage Series E 1.50 Sun Life Granite Enhanced Income - Estate Series E 0.55 Sun Life Granite Balanced - Lifetime Advantage Series F 1.50 Sun Life Granite Enhanced Income - Estate Series F 0.55 Sun Life Granite Balanced - Lifetime Advantage Series O 1.50 Sun Life Granite Enhanced Income - Estate Series O 0.55 Sun Life Granite Balanced - Protect Series A 1.10 Sun Life Granite Enhanced Income - Investment Series A 0.25 Sun Life Granite Balanced - Protect Series E 1.10 Sun Life Granite Enhanced Income - Investment Series E 0.25 Sun Life Granite Balanced - Protect Series F 1.10 Sun Life Granite Enhanced Income - Investment Series F 0.25 Sun Life Granite Balanced - Protect Series O 1.10 Sun Life Granite Enhanced Income - Investment Series O 0.25 Sun Life Granite Balanced Growth Sun Life Granite Enhanced Income - Lifetime Advantage Series A 1.50 Sun Life Granite Balanced Growth - Estate Series A 0.55 Sun Life Granite Enhanced Income - Lifetime Advantage Series E 1.50 Sun Life Granite Balanced Growth - Estate Series E 0.55 Sun Life Granite Enhanced Income - Lifetime Advantage Series F 1.50 Sun Life Granite Balanced Growth - Estate Series F 0.55 Sun Life Granite Enhanced Income - Lifetime Advantage Series O 1.50 Sun Life Granite Balanced Growth - Estate Series O 0.55 Sun Life Granite Enhanced Income - Protect Series A 1.10 Sun Life Granite Balanced Growth - Investment Series A 0.25 Sun Life Granite Enhanced Income - Protect Series E 1.10 Sun Life Granite Balanced Growth - Investment Series E 0.25 Sun Life Granite Enhanced Income - Protect Series F 1.10 Sun Life Granite Balanced Growth - Investment Series F 0.25 Sun Life Granite Enhanced Income - Protect Series O 1.10 Sun Life Granite Balanced Growth - Investment Series O 0.25 Sun Life Granite Balanced Growth - Lifetime Advantage Series A 1.50 Sun Life Granite Balanced Growth - Lifetime Advantage Series E 1.50 Sun Life Granite Balanced Growth - Lifetime Advantage Series F 1.50 Sun Life Granite Balanced Growth - Lifetime Advantage Series O 1.50 Sun Life Granite Balanced Growth - Protect Series A 1.15 Sun Life Granite Balanced Growth - Protect Series E 1.15 Sun Life Granite Balanced Growth - Protect Series F 1.15 Sun Life Granite Balanced Growth - Protect Series O 1.15

Sun Life Assurance Company of Canada

365 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun Life Granite Growth Sun Life Granite Moderate Sun Life Granite Growth - Estate Series A 0.55 Sun Life Granite Moderate - Estate Series A 0.55 Sun Life Granite Growth - Estate Series E 0.55 Sun Life Granite Moderate - Estate Series E 0.55 Sun Life Granite Growth - Estate Series F 0.55 Sun Life Granite Moderate - Estate Series F 0.55 Sun Life Granite Growth - Estate Series O 0.55 Sun Life Granite Moderate - Estate Series O 0.55 Sun Life Granite Growth - Investment Series A 0.25 Sun Life Granite Moderate - Investment Series A 0.25 Sun Life Granite Growth - Investment Series E 0.25 Sun Life Granite Moderate - Investment Series E 0.25 Sun Life Granite Growth - Investment Series F 0.25 Sun Life Granite Moderate - Investment Series F 0.25 Sun Life Granite Growth - Investment Series O 0.25 Sun Life Granite Moderate - Investment Series O 0.25 Sun Life Granite Growth - Lifetime Advantage Series A 1.50 Sun Life Granite Moderate - Lifetime Advantage Series A 1.50 Sun Life Granite Growth - Lifetime Advantage Series E 1.50 Sun Life Granite Moderate - Lifetime Advantage Series E 1.50 Sun Life Granite Growth - Lifetime Advantage Series F 1.50 Sun Life Granite Moderate - Lifetime Advantage Series F 1.50 Sun Life Granite Growth - Lifetime Advantage Series O 1.50 Sun Life Granite Moderate - Lifetime Advantage Series O 1.50 Sun Life Granite Growth - Protect Series A 1.20 Sun Life Granite Moderate - Protect Series A 1.00 Sun Life Granite Growth - Protect Series E 1.20 Sun Life Granite Moderate - Protect Series E 1.00 Sun Life Granite Growth - Protect Series F 1.20 Sun Life Granite Moderate - Protect Series F 1.00 Sun Life Granite Growth - Protect Series O 1.20 Sun Life Granite Moderate - Protect Series O 1.00

Sun Life Granite Income Sun MFS Canadian Bond Sun Life Granite Income - Estate Series A 0.55 Sun MFS Canadian Bond - Estate Series A 0.30 Sun Life Granite Income - Estate Series E 0.55 Sun MFS Canadian Bond - Estate Series E 0.30 Sun Life Granite Income - Estate Series F 0.55 Sun MFS Canadian Bond - Estate Series F 0.30 Sun Life Granite Income - Estate Series O 0.55 Sun MFS Canadian Bond - Estate Series O 0.30 Sun Life Granite Income - Investment Series A 0.25 Sun MFS Canadian Bond - Investment Series A 0.15 Sun Life Granite Income - Investment Series E 0.25 Sun MFS Canadian Bond - Investment Series E 0.15 Sun Life Granite Income - Investment Series F 0.25 Sun MFS Canadian Bond - Investment Series F 0.15 Sun Life Granite Income - Investment Series O 0.25 Sun MFS Canadian Bond - Investment Series O 0.15 Sun Life Granite Income - Lifetime Advantage Series A 1.50 Sun MFS Canadian Bond - Lifetime Advantage Series A 1.00 Sun Life Granite Income - Lifetime Advantage Series E 1.50 Sun MFS Canadian Bond - Lifetime Advantage Series E 1.00 Sun Life Granite Income - Lifetime Advantage Series F 1.50 Sun MFS Canadian Bond - Lifetime Advantage Series F 1.00 Sun Life Granite Income - Lifetime Advantage Series O 1.50 Sun MFS Canadian Bond - Lifetime Advantage Series O 1.00 Sun Life Granite Income - Protect Series A 1.10 Sun MFS Canadian Bond - Protect Series A 0.80 Sun Life Granite Income - Protect Series E 1.10 Sun MFS Canadian Bond - Protect Series E 0.80 Sun Life Granite Income - Protect Series F 1.10 Sun MFS Canadian Bond - Protect Series F 0.80 Sun Life Granite Income - Protect Series O 1.10 Sun MFS Canadian Bond - Protect Series O 0.80

Sun MFS Canadian Equity Growth Sun MFS Canadian Equity Growth - Estate Series A 0.70 Sun MFS Canadian Equity Growth - Estate Series E 0.70 Sun MFS Canadian Equity Growth - Estate Series F 0.70 Sun MFS Canadian Equity Growth - Estate Series O 0.70 Sun MFS Canadian Equity Growth - Investment Series A 0.30 Sun MFS Canadian Equity Growth - Investment Series E 0.30 Sun MFS Canadian Equity Growth - Investment Series F 0.30 Sun MFS Canadian Equity Growth - Investment Series O 0.30

Sun Life Assurance Company of Canada

366 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun MFS Canadian Equity Growth Bundle Sun MFS Global Total Return Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser A 1.50 Sun MFS Global Total Return - Estate Series A 0.65 Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser E 1.50 Sun MFS Global Total Return - Estate Series E 0.65 Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser F 1.50 Sun MFS Global Total Return - Estate Series F 0.65 Sun MFS Canadian Eq Growth Bundle - Lifetime Advantage Ser O 1.50 Sun MFS Global Total Return - Estate Series O 0.65 Sun MFS Global Total Return - Investment Series A 0.25 Sun MFS Canadian Equity Value Sun MFS Global Total Return - Investment Series E 0.25 Sun MFS Canadian Equity Value - Estate Series A 0.70 Sun MFS Global Total Return - Investment Series F 0.25 Sun MFS Canadian Equity Value - Estate Series E 0.70 Sun MFS Global Total Return - Investment Series O 0.25 Sun MFS Canadian Equity Value - Estate Series F 0.70 Sun MFS Global Total Return - Lifetime Advantage Series A 1.50 Sun MFS Canadian Equity Value - Estate Series O 0.70 Sun MFS Global Total Return - Lifetime Advantage Series E 1.50 Sun MFS Canadian Equity Value - Investment Series A 0.30 Sun MFS Global Total Return - Lifetime Advantage Series F 1.50 Sun MFS Canadian Equity Value - Investment Series E 0.30 Sun MFS Global Total Return - Lifetime Advantage Series O 1.50 Sun MFS Canadian Equity Value - Investment Series F 0.30 Sun MFS Global Total Return - Protect Series A 1.25 Sun MFS Canadian Equity Value - Investment Series O 0.30 Sun MFS Global Total Return - Protect Series E 1.25 Sun MFS Canadian Equity Value - Protect Series A 1.50 Sun MFS Global Total Return - Protect Series F 1.25 Sun MFS Canadian Equity Value - Protect Series E 1.50 Sun MFS Global Total Return - Protect Series O 1.25 Sun MFS Canadian Equity Value - Protect Series F 1.50 Sun MFS Canadian Equity Value - Protect Series O 1.50 Sun MFS Global Value Sun MFS Global Value - Estate Series A 0.75 Sun MFS Canadian Equity Value Bundle Sun MFS Global Value - Estate Series E 0.75 Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser A 1.50 Sun MFS Global Value - Estate Series F 0.75 Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser E 1.50 Sun MFS Global Value - Estate Series O 0.75 Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser F 1.50 Sun MFS Global Value - Investment Series A 0.30 Sun MFS Canadian Eq Value Bundle - Lifetime Advantage Ser O 1.50 Sun MFS Global Value - Investment Series E 0.30 Sun MFS Dividend Income Sun MFS Global Value - Investment Series F 0.30 Sun MFS Dividend Income - Estate Series A 0.70 Sun MFS Global Value - Investment Series O 0.30 Sun MFS Dividend Income - Estate Series E 0.70 Sun MFS Global Value - Protect Series A 1.65 Sun MFS Dividend Income - Estate Series F 0.70 Sun MFS Global Value - Protect Series E 1.65 Sun MFS Dividend Income - Estate Series O 0.70 Sun MFS Global Value - Protect Series F 1.65 Sun MFS Dividend Income - Investment Series A 0.30 Sun MFS Global Value - Protect Series O 1.65 Sun MFS Dividend Income - Investment Series E 0.30 Sun MFS Global Value Bundle Sun MFS Dividend Income - Investment Series F 0.30 Sun MFS Global Value Bundle - Lifetime Advantage Series A 1.50 Sun MFS Dividend Income - Investment Series O 0.30 Sun MFS Global Value Bundle - Lifetime Advantage Series E 1.50 Sun MFS Global Growth Sun MFS Global Value Bundle - Lifetime Advantage Series F 1.50 Sun MFS Global Growth - Estate Series A 0.90 Sun MFS Global Value Bundle - Lifetime Advantage Series O 1.50 Sun MFS Global Growth - Estate Series E 0.90 Sun MFS Global Growth - Estate Series F 0.90 Sun MFS Global Growth - Estate Series O 0.90 Sun MFS Global Growth - Investment Series A 0.30 Sun MFS Global Growth - Investment Series E 0.30 Sun MFS Global Growth - Investment Series F 0.30 Sun MFS Global Growth - Investment Series O 0.30

Sun Life Assurance Company of Canada

367 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun MFS International Growth Sun MFS US Equity Sun MFS International Growth - Estate Series A 0.75 Sun MFS US Equity - Estate Series A 0.75 Sun MFS International Growth - Estate Series E 0.75 Sun MFS US Equity - Estate Series E 0.75 Sun MFS International Growth - Estate Series F 0.75 Sun MFS US Equity - Estate Series F 0.75 Sun MFS International Growth - Estate Series O 0.75 Sun MFS US Equity - Estate Series O 0.75 Sun MFS International Growth - Investment Series A 0.30 Sun MFS US Equity - Investment Series A 0.30 Sun MFS International Growth - Investment Series E 0.30 Sun MFS US Equity - Investment Series E 0.30 Sun MFS International Growth - Investment Series F 0.30 Sun MFS US Equity - Investment Series F 0.30 Sun MFS International Growth - Investment Series O 0.30 Sun MFS US Equity - Investment Series O 0.30

Sun MFS International Growth Bundle Sun MFS US Equity Bundle Sun MFS International Grow Bundle - Lifetime Advantage Ser A 1.50 Sun MFS US Equity Bundle - Lifetime Advantage Series A 1.50 Sun MFS International Grow Bundle - Lifetime Advantage Ser E 1.50 Sun MFS US Equity Bundle - Lifetime Advantage Series E 1.50 Sun MFS International Grow Bundle - Lifetime Advantage Ser F 1.50 Sun MFS US Equity Bundle - Lifetime Advantage Series F 1.50 Sun MFS International Grow Bundle - Lifetime Advantage Ser O 1.50 Sun MFS US Equity Bundle - Lifetime Advantage Series O 1.50

Sun MFS International Value Sun MFS US Growth Sun MFS International Value - Estate Series A 0.75 Sun MFS US Growth - Estate Series A 0.90 Sun MFS International Value - Estate Series E 0.75 Sun MFS US Growth - Estate Series E 0.90 Sun MFS International Value - Estate Series F 0.75 Sun MFS US Growth - Estate Series F 0.90 Sun MFS International Value - Estate Series O 0.75 Sun MFS US Growth - Estate Series O 0.90 Sun MFS International Value - Investment Series A 0.30 Sun MFS US Growth - Investment Series A 0.30 Sun MFS International Value - Investment Series E 0.30 Sun MFS US Growth - Investment Series E 0.30 Sun MFS International Value - Investment Series F 0.30 Sun MFS US Growth - Investment Series F 0.30 Sun MFS International Value - Investment Series O 0.30 Sun MFS US Growth - Investment Series O 0.30

Sun MFS International Value Bundle Sun MFS US Value Sun MFS International Val Bundle - Lifetime Advantage Ser A 1.50 Sun MFS US Value - Estate Series A 0.75 Sun MFS International Val Bundle - Lifetime Advantage Ser E 1.50 Sun MFS US Value - Estate Series E 0.75 Sun MFS International Val Bundle - Lifetime Advantage Ser F 1.50 Sun MFS US Value - Estate Series F 0.75 Sun MFS International Val Bundle - Lifetime Advantage Ser O 1.50 Sun MFS US Value - Estate Series O 0.75 Sun MFS US Value - Investment Series A 0.30 Sun MFS Monthly Income Sun MFS US Value - Investment Series E 0.30 Sun MFS Monthly Income - Estate Series A 0.65 Sun MFS US Value - Investment Series F 0.30 Sun MFS Monthly Income - Estate Series E 0.65 Sun MFS US Value - Investment Series O 0.30 Sun MFS Monthly Income - Estate Series F 0.65 Sun MFS US Value - Protect Series A 1.55 Sun MFS Monthly Income - Estate Series O 0.65 Sun MFS US Value - Protect Series E 1.55 Sun MFS Monthly Income - Investment Series A 0.25 Sun MFS US Value - Protect Series F 1.55 Sun MFS Monthly Income - Investment Series E 0.25 Sun MFS US Value - Protect Series O 1.55 Sun MFS Monthly Income - Investment Series F 0.25 Sun MFS Monthly Income - Investment Series O 0.25 Sun MFS US Value Bundle Sun MFS US Value Bundle - Lifetime Advantage Series A 1.50 Sun MFS US Value Bundle - Lifetime Advantage Series E 1.50 Sun MFS US Value Bundle - Lifetime Advantage Series F 1.50 Sun MFS US Value Bundle - Lifetime Advantage Series O 1.50

Sun Life Assurance Company of Canada

368 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun Money Market Sun RBC North American Value Sun Money Market - Estate Series A 0.15 Sun RBC North American Value - Estate Series A 0.70 Sun Money Market - Estate Series E 0.15 Sun RBC North American Value - Estate Series F 0.70 Sun Money Market - Estate Series F 0.15 Sun RBC North American Value - Investment Series A 0.30 Sun Money Market - Estate Series O 0.15 Sun RBC North American Value - Investment Series F 0.30 Sun Money Market - Investment Series A 0.10 Sun RBC North American Value Bundle Sun Money Market - Investment Series E 0.10 Sun RBC North American Val Bundle - Lifetime Advantage Ser A 1.50 Sun Money Market - Investment Series F 0.10 Sun RBC North American Val Bundle - Lifetime Advantage Ser F 1.50 Sun Money Market - Investment Series O 0.10 Sun Money Market - Lifetime Advantage Series A 0.20 Sun Schroder Emerging Markets Sun Money Market - Lifetime Advantage Series E 0.20 Sun Schroder Emerging Markets - Investment Series A 0.30 Sun Money Market - Lifetime Advantage Series F 0.20 Sun Schroder Emerging Markets - Investment Series E 0.30 Sun Money Market - Lifetime Advantage Series O 0.20 Sun Schroder Emerging Markets - Investment Series F 0.30 Sun Money Market - Protect Series A 0.20 Sun Schroder Emerging Markets - Investment Series O 0.30 Sun Money Market - Protect Series E 0.20 Sun Sentry Conservative Balanced Sun Money Market - Protect Series F 0.20 Sun Sentry Conservative Balanced - Estate Series A 0.55 Sun Money Market - Protect Series O 0.20 Sun Sentry Conservative Balanced - Estate Series E 0.55 Sun NWQ Flexible Income Sun Sentry Conservative Balanced - Estate Series F 0.55 Sun NWQ Flexible Income - Estate Series A 0.30 Sun Sentry Conservative Balanced - Estate Series O 0.55 Sun NWQ Flexible Income - Estate Series E 0.30 Sun Sentry Conservative Balanced - Investment Series A 0.25 Sun NWQ Flexible Income - Estate Series F 0.30 Sun Sentry Conservative Balanced - Investment Series E 0.25 Sun NWQ Flexible Income - Estate Series O 0.30 Sun Sentry Conservative Balanced - Investment Series F 0.25 Sun NWQ Flexible Income - Investment Series A 0.15 Sun Sentry Conservative Balanced - Investment Series O 0.25 Sun NWQ Flexible Income - Investment Series E 0.15 Sun Sentry Conservative Balanced - Lifetime Advantage Ser A 1.50 Sun NWQ Flexible Income - Investment Series F 0.15 Sun Sentry Conservative Balanced - Lifetime Advantage Ser E 1.50 Sun NWQ Flexible Income - Investment Series O 0.15 Sun Sentry Conservative Balanced - Lifetime Advantage Ser F 1.50 Sun Sentry Conservative Balanced - Lifetime Advantage Ser O 1.50 Sun PH&N Short Term Bond and Mortgage Sun PH&N Short Term Bond and Mortgage - Estate Series A 0.30 Sun Sentry Global Mid Cap Sun PH&N Short Term Bond and Mortgage - Estate Series F 0.30 Sun Sentry Global Mid Cap - Investment Series A 0.30 Sun PH&N Short Term Bond and Mortgage - Investment Series A 0.15 Sun Sentry Global Mid Cap - Investment Series E 0.30 Sun PH&N Short Term Bond and Mortgage - Investment Series F 0.15 Sun Sentry Global Mid Cap - Investment Series F 0.30 Sun PH&N Short Term Bond and Mortgage - Lifetime Adv Ser A 1.00 Sun Sentry Global Mid Cap - Investment Series O 0.30 Sun PH&N Short Term Bond and Mortgage - Lifetime Adv Ser F 1.00 Sun Sentry Infrastructure Sun RBC Global High Yield Bond Sun Sentry Infrastructure - Estate Series A 0.75 Sun RBC Global High Yield Bond - Estate Series A 0.30 Sun Sentry Infrastructure - Estate Series E 0.75 Sun RBC Global High Yield Bond - Estate Series F 0.30 Sun Sentry Infrastructure - Estate Series F 0.75 Sun RBC Global High Yield Bond - Investment Series A 0.15 Sun Sentry Infrastructure - Estate Series O 0.75 Sun RBC Global High Yield Bond - Investment Series F 0.15 Sun Sentry Infrastructure - Investment Series A 0.30 Sun Sentry Infrastructure - Investment Series E 0.30 Sun Sentry Infrastructure - Investment Series F 0.30 Sun Sentry Infrastructure - Investment Series O 0.30

Sun Life Assurance Company of Canada

369 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

2015 2015 Insurance Fee % Insurance Fee % Sun Sentry Value Sun TD Real Return Bond Sun Sentry Value - Estate Series A 0.70 Sun TD Real Return Bond - Estate Series A 0.45 Sun Sentry Value - Estate Series E 0.70 Sun TD Real Return Bond - Estate Series F 0.45 Sun Sentry Value - Estate Series F 0.70 Sun TD Real Return Bond - Investment Series A 0.15 Sun Sentry Value - Estate Series O 0.70 Sun TD Real Return Bond - Investment Series F 0.15 Sun Sentry Value - Investment Series A 0.30 Sun Templeton Global Bond Sun Sentry Value - Investment Series E 0.30 Sun Templeton Global Bond - Investment Series A 0.15 Sun Sentry Value - Investment Series F 0.30 Sun Templeton Global Bond - Investment Series E 0.15 Sun Sentry Value - Investment Series O 0.30 Sun Templeton Global Bond - Investment Series F 0.15 Sun Sentry Value Bundle Sun Templeton Global Bond - Investment Series O 0.15 Sun Sentry Value Bundle - Lifetime Advantage Series A 1.50 Sun Trimark Sun Sentry Value Bundle - Lifetime Advantage Series E 1.50 Sun Trimark - Investment Series A 0.30 Sun Sentry Value Bundle - Lifetime Advantage Series F 1.50 Sun Trimark - Investment Series F 0.30 Sun Sentry Value Bundle - Lifetime Advantage Series O 1.50 Sun Trimark Canadian Sun Sionna Canadian Small Cap Equity Sun Trimark Canadian - Estate Series A 0.70 Sun Sionna Canadian Small Cap Equity - Estate Series A 0.80 Sun Trimark Canadian - Estate Series E 0.70 Sun Sionna Canadian Small Cap Equity - Estate Series E 0.80 Sun Trimark Canadian - Estate Series F 0.70 Sun Sionna Canadian Small Cap Equity - Estate Series F 0.80 Sun Trimark Canadian - Estate Series O 0.70 Sun Sionna Canadian Small Cap Equity - Estate Series O 0.80 Sun Trimark Canadian - Investment Series A 0.30 Sun Sionna Canadian Small Cap Equity - Investment Series A 0.30 Sun Trimark Canadian - Investment Series E 0.30 Sun Sionna Canadian Small Cap Equity - Investment Series E 0.30 Sun Trimark Canadian - Investment Series F 0.30 Sun Sionna Canadian Small Cap Equity - Investment Series F 0.30 Sun Trimark Canadian - Investment Series O 0.30 Sun Sionna Canadian Small Cap Equity - Investment Series O 0.30

Sun Strategic Income Sun Strategic Income - Income Series A 0.75 Sun Strategic Income - Income Series F 0.75

Sun TD Canadian Bond Sun TD Canadian Bond - Estate Series A 0.30 Sun TD Canadian Bond - Estate Series F 0.30 Sun TD Canadian Bond - Investment Series A 0.15 Sun TD Canadian Bond - Investment Series F 0.15 Sun TD Canadian Bond - Lifetime Advantage Series A 1.00 Sun TD Canadian Bond - Lifetime Advantage Series F 1.00

Sun TD Dividend Income Sun TD Dividend Income - Estate Series A 0.65 Sun TD Dividend Income - Estate Series F 0.65 Sun TD Dividend Income - Investment Series A 0.25 Sun TD Dividend Income - Investment Series F 0.25 Sun TD Dividend Income - Lifetime Advantage Series A 1.50 Sun TD Dividend Income - Lifetime Advantage Series F 1.50

Sun Life Assurance Company of Canada

370 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

Other expenses and costs relating to the administration of the Funds include, but are not limited to, audit and legal fees, fund accounting costs, custodial fees, contractholder reporting costs, interest expense and overdraft expense.

The Company may, at its discretion, absorb some of the Funds’ management fees and/or operating expenses that would otherwise be deducted from the Funds.

The Company currently absorbs overdraft interest expense but may choose not to absorb overdraft interest expense in the future.

The Management Expense Ratio (“MER”) of the Funds represents the aggregate management fees, insurance fees and other expenses for the period, including HST, expressed as an annual percentage of the average daily NAV of each Fund during the period. The effective HST rate is calculated for each series based on the tax rate in each province/territory and the value of the contractholders’ assets, and therefore will vary by series. The annual MERs including GST/HST and other applicable taxes if any, are set out in the “Financial Highlights” section of each Fund. 7. Income Taxes and Withholding Taxes

The Funds are deemed to be inter vivos trusts under the provisions of the Income Tax Act (Canada) and, accordingly, are not subject to tax on their net income, including net realized capital gains and losses for the calendar year, which are allocated to the contractholders at the end of the calendar year.

The Funds may incur withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are shown as a separate expense in the Statements of Comprehensive Income. 8. Related Party Transactions

As Manager, the Company is responsible for the provision of all general management and administrative services required by the Funds in its day-to-day operations, including providing or arranging for the provision of investment advice, bookkeeping, recordkeeping and other administrative services for the Funds.

For its services, the Manager receives a management fee that is calculated as a percentage of the average NAV of each Fund. This fee is calculated daily and payable monthly. The dollar amount, including all applicable taxes, of each Fund’s management expenses that the Manager receives is reported in the management fees in the Statements of Comprehensive Income.

An operating expense incurred by the Manager on behalf of each Fund is considered a fund administrative expense. Under the terms of the Funds' Information Folder, each Fund is responsible for the payment of its administrative and operating expenses. The Manager recovers these expenses from each Fund and the amounts of these charges are disclosed in “administrative fees” in each Fund’s Statements of Comprehensive Income.

The Funds’ investments in underlying funds managed by Sun Life Global Investments (Canada) Inc. (“SLGI”) and MFS Canada Limited (“MFS Canada”) are related party investments. These relationships are described in more detail in the applicable simplified prospectus and annual information forms for the underlying funds. All investment transactions related to underlying SLGI funds are at quoted market values. Please refer to the Schedules of Investment Portfolio for the details of these investments as at December 31, 2015.

The Company is a direct wholly owned subsidiary of Sun Life Financial Inc. SLGI is an indirect wholly owned subsidiary of Sun Life Financial Inc. Sun Life Financial Inc. also has an indirect majority ownership in MFS Investment Management (“MFS”) and MFS Canada.

The Company may inject seed money for the purpose of launching a new Fund. Such seed money is reimbursed from the assets of the related Fund when it is no longer required in order to operate effectively. The Company’s seed investment in the Funds is currently $500 per series, with the exception of Investment Series F in the following funds: Sun Daily Interest ($3,329,833 of seed), Sun Dollar Cost Average Daily Interest ($3,329,833 of seed), and Sun Estate Settlement ($3,328,834 of seed). 9. Financial Risk Management

Each Fund is exposed to various types of risks that are associated with its investment strategies, financial instruments, and markets in which it invests. These risks include credit risk, market risk (which includes currency risk, interest rate risk and other market risk), liquidity risk and concentration risk.

Each Fund’s risk management practice includes the monitoring of compliance to investment guidelines. The Manager manages the potential effects of these financial risks on the Fund’s performance by employing and overseeing professional and experienced portfolio advisors that regularly monitor the Fund’s positions and market events and diversify investment portfolios within the constraints of the investment guidelines.

The value of investments within a Fund’s portfolio can fluctuate on a daily basis as a result of corporate developments, changes in interest rates, changes in the level of inflation, and other political and economic developments. The level of risk depends on the Fund’s investment objectives and the type of securities in which it invests.

These risks and related risk management practices employed by the Funds are discussed below and for each Fund specifically in the “Financial Risk Management” section in the Fund Specific Notes to the Financial Statements. Additional risks that may be associated with investment in the Funds are described in the simplified prospectus of the Funds. a) Credit risk

Credit risk is the risk that the counterparty to a financial instrument will fail to discharge an obligation or commitment that is entered into with a Fund. The Funds’ main credit risk concentration lies in their investments in underlying funds, and represents the maximum credit risk exposure of the Funds. The Funds limit their exposure to credit loss by placing their cash and investments in underlying funds with high credit quality counterparties.

All transactions in listed securities are settled upon delivery using approved brokers/dealers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker/dealer has received payment. Payment is made on a purchase once the securities have been received by the broker/dealer. The trade will fail if either party fails to meet its obligation.

Sun Life Assurance Company of Canada

371 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015 b) Market risk

i) Currency risk

Currency risk is the risk that the value of investments denominated in currencies, other than the Canadian dollar (the functional currency of the Funds), will fluctuate due to changes in foreign exchange rates. The “Financial Risk Management” section in the Fund Specific Notes to the Financial Statements identifies all investments denominated in foreign currencies. Equities in foreign markets and foreign bonds are exposed to currency risk as the prices denominated in foreign currencies are converted into the Canadian dollar in determining fair value. The Fund could be exposed to risk if the value of the currency changes unfavourably.

ii) Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or fair values of financial instruments. Interest rate risk arises when the Funds invest in interest-bearing financial instruments. The Funds are exposed to the risk that the value of such financial instruments will fluctuate due to changes in the prevailing levels of market interest rates.

iii) Other market risk

Other market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The investments of the Funds are subject to normal market fluctuations and the risks inherent in investment in financial markets. The maximum risk resulting from financial instruments held by the Funds is determined by the fair value of the financial instruments.

The value of investments in various markets can be affected by political, social and economic instability, diplomatic developments, imposition of taxes, expropriation of assets, and ability to invest in, and withdraw assets from these markets. The Manager moderates this risk through diversification of the Funds. The Manager monitors the Funds’ overall market positions on a daily basis and positions are maintained within. c) Liquidity risk

The Funds are exposed to daily cash redemptions of redeemable units. The units of the Funds are redeemed on demand at the current NAV per unit at the option of the contractholder. Liquidity risk is the possibility that investments in a Fund cannot be readily converted into cash when required. Liquidity risk is managed by investing the majority of the Funds’ assets in investments that are traded in an active market and can be readily transacted. In addition, the Funds aim to retain sufficient cash and cash equivalent positions to maintain liquidity. Each Fund may, from time to time, hold securities that are not traded in an active market and may be illiquid. All liabilities mature within three months. d) Concentration risk

Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, product type, industry sector or counterparty type. The Funds limit their exposure to concentration risk through diversification and a thorough understanding of each investment in the portfolio. 10. Fair Value Measurement Hierarchy

IFRS 13 Fair Value Measurement requires disclosures relating to fair value measurements using a three-level fair value hierarchy. The level within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. Assessing the significance of a particular input requires judgment, considering factors specific to the asset or liability. The following shows financial instruments recognized at fair value, categorized between those whose fair value is based on:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Fund determines whether transfers have occurred between levels in the hierarchy by re-assessing the categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the beginning of each reporting period.

Fair values of financial instruments are classified as Level 1 when the related or derivative is actively traded and a quoted price is available. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless the measurement of its fair value requires the use of significant unobservable inputs, in which case it is reclassified as Level 3. Level 3 financial instruments are reviewed on a regular basis by management. The Manager considers the appropriateness of the valuation model inputs, as well as the valuation result using various valuation methods and techniques generally recognized as standard within the industry. All the Fund’s investments are classified as Level 1. There were no transfers between any of the levels in 2015. 11. Capital Management

Units issued and outstanding are considered to be capital of the Funds. The Funds are not subject to externally imposed capital requirements and have no legal restrictions on the issue, repurchase or resale of redeemable units. The capital received by a Fund is managed to achieve its investment objective while maintaining liquidity to satisfy contractholder redemptions. Units of a series are redeemable at the NAV per unit of the respective series.

Sun Life Assurance Company of Canada

372 Sun Life Guaranteed Investment Funds (GIFs) (continued) Notes to Financial Statements For the period ended December 31, 2015

12. Accounting Standards Issued but not yet Adopted

IFRS 9 “Financial Instruments” was issued in November 2009 and amended in October 2010, November 2013 and July 2014, and is effective for years beginning on or after January 1, 2018, to be applied retrospectively, or on a modified retrospective basis. It is intended to replace IAS 39 “Financial Instruments: Recognition and Measurement”.

The project has been divided into three phases: classification and measurement, impairment of financial assets, and hedge accounting. IFRS 9’s current classification and measurement methodology provides that financial assets are measured at either amortized cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The classification and measurement for financial liabilities remains generally unchanged; however, for a financial liability designated as at fair value through profit or loss, revisions have been made in the accounting for changes in fair value attributable to changes in the credit risk of that liability. Gains or losses caused by changes in an entity’s own credit risk on such liabilities are no longer recognized in profit or loss but instead are reflected in OCI.

Revisions to hedge accounting were issued in November 2013 as part of the overall IFRS 9 project. The amendment introduces a new hedge accounting model, together with corresponding disclosures about risk management activity for those applying hedge accounting. The new model represents a substantial overhaul of hedge accounting that will enable entities to better reflect their risk management activities in their financial statements.

Revisions issued in July 2014 replace the existing incurred loss model used for measuring the allowance for credit losses with an expected loss model. Changes were also made to the existing classification and measurement model designed primarily to address specific application issues raised by early adopters of the standard. They also address the income statement accounting mismatches and short-term volatility issues which have been identified as a result of the insurance contracts project.

The Company is assessing the impact of these amendments. 13. Subsequent Event

There were changes announced regarding the Private Client Program. E class was closed to deposits on February 5, 2016. Existing units in E class will be moved to the FEL sales charge option of the same fund within existing contracts on the weekend before May 9, 2016. The new Private Client auto-enrolment feature will help ensure all eligible contracts automatically receive the lowest fees available.

Sun Life Assurance Company of Canada

373

SUN LIFE ASSURANCE COMPANY OF CANADA 227 King St S., Waterloo, ON N2J 4C5 04/2016