1. Portfolio Solutions Group
June 2019
Susan Spence
Brandon Hutchison
Vice-President &
Portfolio Manager (PSG)
Assistant Vice-President & Portfolio Manager (PSG)

2. To provide our clients with strong long-term investment performance
By the numbers
GLC Asset Management Group Ltd. is a
leading investment management firm with one focus:
To provide our clients with strong long-term investment performance
$54.8 5
75+
50+
15+
billion
assets under
management
investment
divisions
years of avg.
experience
unique
mandates
years of
history
team
members
Source: GLC │As at June 30, 2019

3. GLC’s investment divisions
top-down/ bottom-up
all-cap
growth
quantitative
fundamental factor modeling
bottom-up
concentrated
large-cap
deep fundamental analysis
fixed income
multi-factor
absolute and relative performance objectives
forward- looking asset allocation
risk and target date defined
independent analysis and oversight

4. Meet the PSG team Susan Spence, CFA Brandon Hutchison, CFA
Vice-President & Portfolio Manager
Brandon Hutchison, CFA
Assistant Vice-President & Portfolio Manager
Experience:
Experience:
24 years investment industry experience with multi-asset funds and international, U.S. and Canadian equity mandates.
15 years investment industry experience in research, analysis and portfolio management focused on multi-asset funds.
Marie-Benoîte Ould-Ferhat
Manager
Igor Ivanic, CFA
Associate Manager
Experience:
20 years of investment experience specializing in quantitative research, analysis and modeling.
Experience:
7 years investment industry experience specializing in data management and analysis.
Justin Truong
Analyst
Experience:
3 years of investment experience specializing in analysis and client management.

5. PSG’s investment solutions
Target
Risk
Target
Date
Asset
Class
Managed Fund
Solutions
A customized investment solution based on an investor’s risk tolerance
A long-term investment solution tailor-made to meet a future financial goal
A multi-manager approach focused on a single asset-class
A diversified investment solution with a selection of fixed-income to equity allocations to choose from
Asset allocation funds – A customized investment solution based on an investor’s risk tolerance.
Income allocation funds –each solution with specific focus on funds that generate income (dividends and interest) as well as capital gains.
Managed fund solutions – A diversified investment solution with a selection of fixed-income to equity allocations to choose from.
• Core managed solutions – each solution is made up of funds from multiple investment managers affiliated with Canada Life.
• Partner managed solutions – each solution is made up of multiple funds primarily from investment managers external to Canada Life.
Core Target Risk
A core building block when creating a customized investment solution
Core Managed
Income Target Risk
Partner Managed

6. PSG’s 5 core investment principles
Multi-level active
management adds value
A tailored approach to portfolio construction improves investor outcomes
Each component is
a building block
Direct and ongoing access to managers
Broad access to investment options enhances opportunity

7. PSG’s investment process

8. Portfolio construction
Underlying fund selection
We seek out:
concentrated
portfolios
style-specific
approaches
process
driven
active
managers
proven
track record
We don’t look at a fund in isolation.
It must add value to the portfolio as a whole.
Drive stronger returns? and/or
Does it dampen volatility? and/or
Does it create opportunities to enhance the benefits of active management?
(e.g. adds the ability to strategically align the portfolio to current market views through adjustments to duration, regional exposure, etc.)

9. Portfolio construction a tailored approach to meeting clients needs
The best approach to allocating risk and opportunity can, and should, differ across the spectrum of risk tolerances and time horizons.

10. portfolio construction
Investment process
A proprietary, disciplined investment process designed to deliver added value within each core element.
Investment Process
portfolio construction
active management
rigorous oversight

11. Disciplined rebalancing
Target and drift methodology
Asset mix:
fixed income / equity split allowed to drift +/- 2 percentage points
Individual fund:
fixed income funds +/- 10% of target allocation
equity funds +/- 20% of target allocation
Daily cash flows used to offset market movements:
reduces frequency and cost of rebalancing
When rebalancing is triggered, all underlying funds brought back to target weights

12. Asset Allocation: Target Risk Funds
Strategic Asset Mix
Equity*
Fixed Income
Conservative
25%
75%
Moderate
40%
60%
Balanced
Advanced
80%
20%
Aggressive
100% 0%
Equity allocation equally split between domestic and foreign
* For strategic asset allocation purposes, Real Estate is classified as Canadian Equity
Fixed income benchmark: 100% FTSE Canada Universe Index
Equity benchmark: 40% S&P/TSX Composite Index, 60% MSCI World (CAD)
Real Estate benchmark: 100% S&P/TSX Composite Index

13. Portfolio Solutions Group
Positioning & Outlook

14. Current positioning
general preference for higher yield/income-oriented mandates across the portfolios
overweight position in corporate bonds and international bonds
a short duration position relative to the FTSE Canada Universe Bond Index
preference for US over EAFE within foreign equity allocations moderating
maintain exposure to infrastructure at the conservative end
maintain exposure to emerging markets, resources and smaller cap at the aggressive end

15. Target risk funds Overall goals Fixed income
funds are optimally diversified by asset class, region, style and manager
underlying mandates are consistent with stated style
underlying mandates have a skilled investment team, with a strong, repeatable process
funds are constructed with sufficient levers in place to accommodate tilting between reprofilings
Fixed income
broad range of fixed income mandates at the conservative end giving the investor exposure to the different sectors/credit qualities of the market
more conservative choice of fixed income mandates at the aggressive end to offset some of the higher equity market risk

16. Target risk funds Equities
linear transition of the value growth score from ~100 at the conservative end to ~190 at the aggressive end (all scores still within core V-G box)
linear transition of the size score with larger cap exposure at the conservative end declining to a more all-cap exposure at the aggressive end
greater emphasis on the more stable dividend paying/income oriented stocks at the conservative end to align with the investors’ lower risk tolerance
optimal real estate allocations of 6%, 8%, 10%, 10%, 10% in the respective target risk funds (conservative – aggressive)

17. PSG outlook comments – Q2 2019
Markets were positive again in the second quarter, but gains came by way of a grind higher compared to the sharper rise in the first quarter of the year. Once again US-China trade tensions took centre stage and this issue looks to remain on investors' minds in the quarters ahead. This is far from the only geopolitical hot topic capturing market participants' attention, and the impact of these uncertainties on the near-term movement of financial asset prices is difficult to discern.
We are maintaining a balanced approach in our funds from both an asset class and regional perspective. Slower growth for the global economy and a slew of geopolitical risks dampen enthusiasm over a still appealing equity risk premium. While the odds of recession are higher than in the past, particularly as described by models that hold dear the steepness of the yield curve, near-term recession risks remain muted, employment is strong, and monetary and fiscal policy are not restrictive.
It seems certain that monetary tightening is currently off the menu for central banks globally, but what remains to be seen is the magnitude and timing of rate cuts and/or asset purchases. The US Federal Reserve has prepared markets for a possible interest rate decrease in July, and markets are pricing in such a change. The Bank of Canada does not appear as eager, but a partially inverted yield curve suggests market expectations are for lower short-term rates ahead.

18. PSG outlook comments – Q2 2019
Within fixed income allocations our key positioning themes remain being short duration, overweight credit and overweight international exposure. Our credit overweight primarily consists of investment grade bonds, with some select exposure to high yield debt. Having a shorter duration protects against rising interest rates, while overweight credit positioning offers enhanced yield and an unhedged international bond allocation helps to diversify the sources of risk and return in the portfolio.
Our alternatives allocation composed of direct real estate and mortgages has contributed strong risk-adjusted returns in the past and these asset classes remain a key differentiator of our funds, especially for the appealing downside protection and diversification benefits.

19. Portfolio Solutions Group
Portfolio characteristics

20. Current positioning – fixed income

21. Current positioning – equity

22. Current positioning – fixed income

23. Current positioning – equity

24. Current positioning – fixed income

25. Current positioning – equity

26. Current positioning – fixed income

27. Current positioning – equity

28. Portfolio Solutions Group
Target weights

29. Current target weights – LL Profile
Underlying Fund
Conservative
Moderate
Balanced
Advanced
Aggressive
Core Bond (Portico)
18.0%
16.0%
14.0%
9.0%
Core Plus Bond (Portico)
12.0%
8.0%
Mortgage (Portico)
15.0%
Corporate Bond (Portico)
7.0%
5.0%
3.0%
Long Term Bond (Portico)
Real Return Bond (Portico)
Unconstrained Fixed Inc (Mackenzie)
6.0%
4.0%
International Bond (Brandywine)
Dividend (GWLIM)
Canadian All Cap Value (Mackenzie)
1.3%
3.2%
3.4%
3.9%
Canadian Value Equity (London Capital)
3.5%
7.5%
Canadian Equity (Fidelity)
4.5%
All Canadian Equity (CI/Cambridge)
2.0%
Mid Cap Canada (GWLIM)
6.5%
Canadian Resource (Mackenzie)
Foreign Equity (Mackenzie/Ivy)
Global Equity (Putnam)
5.6%
Global Small Cap (Mackenzie)
Global Infrastructure (London Capital)
U.S. Dividend (GWLIM)
2.9%
U.S. Value (London Capital)
2.8%
4.8%
9.5%
10.0%
American Growth (AGF)
3.6%
6.6%
International Equity (Setanta)
5.5%
International Opportunity (JPMorgan)
Emerging Markets (Putnam)
Real Estate (GWLRA)

30. Current target weights – GWL Portfolio
Underlying Fund
Conservative
Moderate
Balanced
Advanced
Aggressive
Canadian Bond (Portico)
17.0%
15.0%
13.0%
14.0%
Core Bond (Portico)
12.0%
7.0%
Bond (Mackenzie)
6.0%
Commercial Mortgage (Portico)
10.0%
3.0%
Corporate Bond (Portico)
4.0%
Long Term Bond (Portico)
International Bond (Brandywine)
Unconstrained Fixed Income (Mackenzie)
Real Return Bond (Portico)
Dividend (GWLIM)
3.5%
5.0%
Canadian Value (CI/Harbour)
5.5%
Canadian Value (FGP)
1.1%
1.3%
2.0%
Canadian Equity (GWLIM)
4.5%
9.0%
Canadian Equity (Laketon)
6.5%
Mid Cap Canada (GWLIM)
Foreign Equity (Mackenzie/Ivy)
7.7%
Global Equity (Setanta)
3.4%
Global Value (Mackenzie/Cundill)
8.0%
Global Small Cap (Mackenzie)
Global Infrastructure Equity (London Capital)
U.S. Value (London Capital)
2.5%
American Growth (AGF)
International Opportunity (JPMorgan)
7.5%
International Equity (Setanta)
Emerging Markets (Putnam)
Real Estate (GWLRA)

31. Current target weights – CL Allocation
Underlying Fund
Conservative
Moderate
Balanced
Advanced
Aggressive
Core Plus Bond (Portico)
26.0%
25.5%
22.5%
17.0%
Core Bond (Portico)
8.0%
6.0%
Government Bond (Portico)
12.0%
7.5%
3.0%
Long Term Bond (Portico)
Real Return Bond (Portico)
Corporate Bond (Portico)
9.0%
International Bond (CLI)
5.5%
Unconstrained Fixed Inc (Mackenzie)
4.0%
Enhanced Dividend (Laketon)
3.5%
4.5%
7.0%
2.5%
Canadian Equity Value (Laketon)
Canadian Value Equity (London Capital)
1.0%
Canadian Equity (Laketon)
Canadian Equity (Bissett)
1.1%
4.3%
Fidelity True North®
Mid Cap Canada (GWLIM)
5.0%
Canadian Resource (Mackenzie)
6.5%
Global Equity (Setanta)
8.5%
Global Equity (Invesco)
4.9%
Global Growth (Mackenzie)
Global Small Cap (Mackenzie)
Global Infrastructure (London Capital)
U.S. Value (London Capital)
4.2%
10.0%
American Growth (AGF)
11.0%
International Equity (Templeton)
International Equity (CI/Altrinsic)
Emerging Markets (Putnam)
Real Estate (GWLRA)

32. Current target weights – Quadrus Folio
Underlying Fund
Conservative
Moderate
Balanced
Advanced
Aggressive
Core Plus Bond (Portico)
27.0%
20.0%
17.0%
8.0%
Bond (Mackenzie)
20.5%
19.0%
13.0%
9.0%
Corporate Bond (Portico)
7.0%
5.0%
3.0%
Long Term Bond (Portico)
4.0%
International Bond (CLI)
7.5%
6.5%
Unconstrained Fixed Income (Mackenzie)
6.0%
Short Term Bond (Portico)
2.5%
Real Return Bond (Portico)
Dividend (GWLIM)
3.5%
5.5%
Canadian Value (FGP)
Canadian All Cap Value (Mackenzie)
4.5%
Canadian Growth (GWLIM)
12.0%
Canadian Equity (Laketon)
Canadian Resource (Mackenzie)
Global Dividend (Setanta)
Global Infrastructure Equity (London Capital)
Global Growth (Mackenzie)
Global Small Cap (Mackenzie)
U.S. Value (Putnam)
8.5%
9.5%
U.S. All Cap Growth (Mackenzie)
Foreign Equity (Mackenzie/Ivy)
International Core Equity (Putnam)
11.0%
Emerging Markets (Mackenzie)

33. Current target weights – Quadrus
Underlying Fund
Diversified Fixed Income
Core Plus Bond (Portico)
33.5%
Core Bond (Portico)
26.0%
Corporate Bond (Portico)
10.0%
Long Term Bond (Portico)
7.5%
Unconstrained Fixed Income (Mackenzie)
Short Term Bond (Portico)
4.0%
International Bond (CLI)
9.0%
Underlying Fund
NA Specialty
U.S. Mid Cap Growth (Mackenzie)
16.0%
Canadian Opportunities (Fidelity)
9.0%
U.S. Small Companies (Trimark)
14.0%
Canadian Security (Mackenzie/Cundill)
13.0%
Small Cap Value (Mackenzie)
7.0%
U.S. All Cap Growth (Mackenzie)
Canadian Resource (Mackenzie)
Mid Cap Canada (GWLIM)
Canadian All Cap Value (Mackenzie)
6.0%
U.S. Value (Putnam)
5.0%

34. Portfolio Solutions Group
Performance

35. London Life Profile funds
Outperformance versus Benchmark
Capture Ratio

36. London Life Profile funds
5-year Gross Returns (%)
30 Jun 19
5-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

37. London Life Profile funds
10-year Gross Returns (%)
30 Jun 19
10-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

38. London Life Profile funds
Outperformance versus Benchmark
Capture Ratio

39. Outperformance versus Benchmark
GWL Portfolio funds
Outperformance versus Benchmark
Capture Ratio

40. GWL Portfolio funds 5-year Gross Returns (%)
30 Jun 19
5-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

41. GWL Portfolio funds 10-year Gross Returns (%)
30 Jun 19
10-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

42. Outperformance versus Benchmark
GWL Portfolio funds
Outperformance versus Benchmark
Capture Ratio

43. Canada Life Allocation funds
Outperformance versus Benchmark
Capture Ratio

44. Canada Life Allocation funds
5-year Gross Returns (%)
30 Jun 19
5-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

45. Canada Life Allocation funds
10-year Gross Returns (%)
30 Jun 19
10-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

46. Canada Life Allocation funds
Outperformance versus Benchmark
Capture Ratio

47. Outperformance versus Benchmark
Quadrus Folio funds
Outperformance versus Benchmark
Capture Ratio

48. Quadrus Folio funds 5-year Gross Returns (%)
30 Jun 19
5-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

49. Quadrus Folio funds 10-year Gross Returns (%)
30 Jun 19
10-year Standard Deviations (%)
30 Jun 19
Fund
Fund
Benchmark
Benchmark
Source: Morningstar Direct, SFFS │ Figures are annualized

50. Outperformance versus Benchmark
Quadrus Folio funds
Outperformance versus Benchmark
Capture Ratio

51. Quadrus Diversified Fixed Income Folio
Asset mix
as at June 30, 2019
CORE PLUS BOND (PORTICO)
CORE BOND (PORTICO)
CORPORATE BOND (PORTICO)
SHORT TERM BOND (PORTICO)
INTERNATIONAL BOND (CLI)
LONG TERM BOND (PORTICO)
UNCONSTRAINED FIXED INCOME (MACKENZIE)
Source information and disclaimer can be found on the last page.
Portfolio attributes reflect the portfolio strategy used by the Quadrus fund shelf.

52. LL Diversified Fixed Income
Asset mix
as at June 30, 2019
CORE PLUS BOND (PORTICO)
CORE BOND (PORTICO)
MORTGAGE (PORTICO)
CORPORATE BOND (PORTICO)
INTERNATIONAL BOND (BRANDYWINE)
UNCONSTRAINED FIXED INCOME (MACKENZIE)
LONG TERM BOND (PORTICO)
REAL RETURN BOND (PORTICO)
SHORT TERM BOND (PORTICO)
Source information and disclaimer can be found on the last page.
Portfolio attributes reflect the portfolio strategy used by the London Life fund shelf.

53. GWL Diversified Fixed Income
Asset mix
as at June 30, 2019
CANADIAN BOND (PORTICO)
CORE BOND (PORTICO)
COMMERCIAL MORTGAGE (PORTICO)
INTERNATIONAL BOND (BRANDYWINE)
BOND (MACKENZIE)
UNCONSTRAINED FIXED INCOME (MACKENZIE)
CORPORATE BOND (PORTICO)
LONG TERM BOND (PORTICO)
REAL RETURN BOND (PORTICO)
SHORT TERM BOND (PORTICO)
Source information and disclaimer can be found on the last page.
Portfolio attributes reflect the portfolio strategy used by the Great-West Life fund shelf.

54. Where to find more information
Check out our website:
Follow us on social media:
LinkedIn: GLC LinkedIn page
Twitter: Coming soon
Subscribe to our podcasts by following GLC Asset Management:
Apple iTunes
Google Play Music
Watch our video:
An introduction to Portfolio Solutions Group