GROUP SAVINGS AND RETIREMENT Quarterly Update Volume 26, Number 1 First Quarter, March 31, 2021 Quarterly Update Group Savings Contents and Retirement Economic and Financial Environment . 4 Global Fixed Income (PIMCO) . 70 Floating Rate Bank Loan (AlphaFixe) . 71 Market indicators . 14 Diversified Funds Investment options . 16 Diversified Security . 72 Our Investment Advisors . 17 Balanced Moderate Index (BlackRock) . 73 ATTITUDE portfolios . 23 Diversified . 74 Balanced (Beutel Goodman) . 75 Group Investment Funds . 27 Balanced (Jarislowsky) . 76 Target Date Funds Balanced Growth (MFS) . 77 LifePath Retirement Index I (BlackRock) . 28 Balanced (PH&N) . 78 LifePath 2025 Index (BlackRock) . 29 Diversified Opportunity . 79 LifePath 2030 Index (BlackRock) . 30 Fidelity Canadian Asset Allocation . 80 LifePath 2035 Index (BlackRock) . 31 Canadian Equity Funds LifePath 2040 Index (BlackRock) . 32 Canadian Equity Index (BlackRock) . 81 LifePath 2045 Index (BlackRock) . 33 Dividend . 82 LifePath 2050 Index (BlackRock) . 34 Canadian Dividend (Beutel Goodman) . 83 LifePath 2055 Index (BlackRock) . 35 Canadian Equity Value (PH&N) . 84 LifePath 2060 Index (BlackRock) . 36 Canadian Equity (QV) . 85 Fidelity ClearPath Income . 37 Fidelity Canadian Focused Equity . 86 Fidelity ClearPath 2020 . 38 Canadian Equity Growth . 87 Fidelity ClearPath 2025 . 39 Canadian Equity Q Growth (CC&L) . 88 Fidelity ClearPath 2030 . 40 Canadian Equity (Fiera Capital) . 89 Fidelity ClearPath 2035 . 41 Canadian Ethical Equity Fossil Fuel Free (Fiera Capital) . 90 Fidelity ClearPath 2040 . 42 Canadian Equity (Jarislowsky) . 91 Fidelity ClearPath 2045 . 43 Canadian Equity Fossil Fuel Free (Jarislowsky) . 92 Fidelity ClearPath 2050 . 44 Canadian Equity (MFS) . 93 Fidelity ClearPath 2055 . 45 Fidelity True North® . 94 Fidelity ClearPath 2060 . 46 Responsible Canadian Research Equity (MFS) . 95 Asset Allocation Funds Canadian Equity Small Cap . 96 Asset Allocation - Conservative . 47 Canadian Equity Small Cap (QV) . .97 Asset Allocation - Moderate . 48 Foreign Equity Funds Asset Allocation - Balanced . 49 Global Equity Index ACWI (BlackRock) . 98 Asset Allocation - Growth . 50. Global Equity . 99 Asset Allocation - Aggressive Growth . 51 Global Equity Low Volatility ACWI (TD) . 100 Portfolio Series Income (CI) . 52. Global Equity (Hexavest) . 101 Portfolio Series Conservative (CI) . 53 Global Equity (C$-Hedged) (Hexavest) . 102 Portfolio Series Balanced (CI) . 54 Global Equity (QV) . 103 Portfolio Series Balanced Growth (CI) . 55 Global Equity (Sprucegrove) . .104 Portfolio Series Growth (CI) . 56 Global Equity Fossil Fuel Free (Jarislowsky) . 105 Income Funds Global Research Equity (MFS) . 106 Money Market . .57 Fidelity Global Select Equity . 107 Short Term Bond . 58 Global Equity (Mawer) . 108 Canadian Bond Index (BlackRock) . 59 Global Equity (PH&N) . 109 Green Bond (AlphaFixe) . 60 Global Equity (Baillie Gifford) . 110 Bond . 61 Global Stewardship Equity (Baillie Gifford) . 111 Bond (Fiera Capital) . 62 Global Equity Small Cap (Fisher) . 112 Bond (PH&N) . 63 Global Equity Small Cap (Lazard) . 113 Core Plus Bond (PH&N) . 64 International Equity Index (BlackRock) . 114 Core Plus Bond (PIMCO) . 65 International Equity . 115 ReturnPlus (AlphaFixe) . 66 International Equity (Hexavest) . 116 Canadian Corporate Bond . 67 International Equity (Aberdeen) . 117 Long Term Bond . 68 International Equity (Jarislowsky) . 118 Core Plus Long Term Bond (PIMCO) . 69 International Equity (Mawer) . 119 Quarterly Update | Group Investment Funds First quarter, ending March 31, 2021 - 2 - Industrial Alliance Quarterly Update Group Savings Contents (continued) and Retirement International Equity (MFS) . 120 Private Debt (TD) . 140 U .S .Equity Index (BlackRock) . 121 Diversified Fixed Income Alternatives . 141 U .S .Equity Index Non-Registered (BlackRock) . 122 Global Direct Real Estate - Portfolios (UBS) . 142 U .S . Dividend Growth . 123 Global Direct Real Estate - 100% (UBS) . 143 U .S . Equity . 124 Global Direct Infrastructure - 100% (IFM) . 144 U .S . Equity (Jarislowsky) . .125 Diversified Alternatives . 145 U .S . Equity (Mawer) . 126 Funds closed to new clients U .S .Equity Core (MFS) . 127 Canadian Equity Low Volatility (TD) . 146 Thematic Innovation . 128 Canadian Equity (Beutel Goodman) . 147 Emerging Markets Equity Index (BlackRock) . 129 Fidelity Canadian Systematic Equity . 148 Emerging Markets (Aberdeen) . 130 Global Equity (Fiera Capital) . 149 Emerging Markets (Templeton) . 131 Global Equity Small Cap (Mawer) . 150 Emerging Markets (Baillie Gifford) . 132 U .S . Equity Index (C$-Hedged) (BlackRock) . 151 Alternative/Specialty Funds U .S . Equity (Fiera Capital) . 152 Balanced-Risk Allocation (Invesco) . 133 Gross returns . 153 Global Targeted Returns (Invesco) . 134 Global Developed Real Estate Index (BlackRock) . 135 Legal Notices . 157 Fidelity Global Real Estate . 136 Global Infrastructure Equity Index (BlackRock) . 137 Global Infrastructure (Lazard) . 138 Commercial Mortgage (Addenda) . 139 Quarterly Update | Group Investment Funds First quarter, ending March 31, 2021 - 3 - Industrial Alliance Economic and Financial Environment Group Savings As at March 31, 2021 and Retirement Has economic news become too positive? Graph 1 By Sébastien Mc Mahon, M .E .Sc ., PRM, CFA Senior Portfolio Manager, Diversified Funds and Economist Industrial Alliance Insurance and Financial Services Inc . The first quarter of 2021 marks the first anniversary of the COVID-19 pandemic . Looking back, the past 12 months have been nothing short of historic . In quick succession in the months of March and April 2020, the market experienced its worst monthly declines in its history, along with the loss of nearly three million jobs in Canada and more than 22 million south of the border . Canada’s GDP shrank at an annualized rate of almost 40% in the second quarter of 2020, before rebounding by nearly 40% in the third quarter . In spite of it all, stock exchanges reached new peaks during the course of the year . As we look ahead, it may seem as if economic news is becoming “too positive ”. The pace of the worldwide vaccination campaign is picking up week after week, exceeding all expectations we might have had in 2020 . Budget support from governments all over the world has been, and remains, massive . In fact, it’s Vaccine rollouts in the United Kingdom and the United States have also even on the rise in the United States, which may lead to an absolutely wild year outpaced those of other Western nations; as a result, both countries are in a for consumer spending once the lockdown measures have been eased . In short, good position to attain herd immunity by the end of the summer . Continental investors have gone from worrying that the world economy would grow too Europe made a slow start on vaccination, which prompted political pressure . slowly to worrying that it will grow too quickly, thereby triggering an inevitable Also, while the saga surrounding the decision to suspend the use of the inflationary spiral . AstraZeneca vaccine did not help, by the end of the quarter things seemed to In recent months, this investor anxiety has prompted a rapid rise in long-term be righting themselves . Canada also suffered from a slow start since no vaccine interest rates as the market continues to struggle to make sense of the is produced domestically; however, by the end of March, the data showed a messages put forward by central banks . The U .S . Federal Reserve has repeatedly definite speeding-up in the rollout of the vaccine . stated that at this stage it does not intend to raise its policy rate in the course As we stated at the end of 2020 and believe even more strongly now, vaccine of the next two years, even if the economy begins to overheat . rollout will be the most decisive factor for the economic outlook of 2021 and Under these circumstances, even with the markets’ historic positive performance 2022 . of the past 12 months, we continue to recommend that investors strongly As far as traditional economic indicators are concerned, data coming China and favour equities over bonds . History suggests that stock markets are able to other emerging economies are very impressive . resist interest-rate rises as long as borrowing costs do not increase to such a point where a recession is triggered . With all of the fiscal and financial support Chinese macroeconomic figures published in February and March show in place, and given the accelerating pace of the vaccination campaign, we considerable strength that significantly outpaces expectations . believe that the current risk of a return to recession to be very low . Effects related to the basis for comparison between the present day and the Around the world: a strong start to the vaccination campaign same period in 2020, when we were experiencing the worst economic downturn resulting from the pandemic, will likely remain present throughout Week after week, the news about the pandemic gets better, with the mass the first quarter of the year, thereby creating a challenge for decision-makers vaccination campaign continuing to gain momentum . and investors attempting to detect genuine trends . The country with the most noteworthy progress in this regard is Israel, where Two dependable macroeconomic indicators are providing positive signals with more than 60% of the population has now received at least one dose of the respect to China’s economic vitality: (1) exports from South Korea – a country vaccine (see Graph 1) . Herd immunity has almost been achieved in Israel, where that supplies Chinese domestic production with multiple electronic components businesses are reopening, images of public gatherings have become headline – have surged sharply; and (2) the price of copper has jumped much higher in news, and the number of COVID-related hospitalizations among seniors is in recent quarters and is slowly approaching its all-time peak, which occurred in sharp decline . 2010 (see Graph 2) . This metal is often referred to as Doctor Copper as a result of its.