1. Investing in a low yield world David Irwin

2. 2 CTRL+ALT+DELETE

3. 3

4. GOVERNMENT BONDS 4

5. EQUITABLE ASSET MANAGEMENT GROUP Insurance Managers  Internal function of the company since 1920  $1.8 billion in assets under management – general funds & segregated funds History of Solid Investment Performance  Solid investment portfolio, proven even through weak economic conditions, which contributes to strong corporate earnings Experienced in asset allocation  Nimble, top-down management

6. Top-downConservative Asset class managers Security selection Equitable Asset Management Group INVESTMENT PHILOSOPHY

7. 94%

8. LOOKING AT THE “BIG- PICTURE”

9. The economy & valuations

10. ZIRP QE LSAP WIT2

11. HISTORICALLY LOW RATES

12. INVESTORS NEED MORE YIELD

13. 13 CANADA SAVINGS BONDS

14. US FED HAS DRIVEN EQUITY MARKETS HIGHER

15. THE RETURN OF THE CONSUMER Consumer GDP contribution

16. CONSUMER DEBT DECREASING IN THE US Source: Bloomberg

17. US Canada HOUSING PERMITS > HOUSING STARTS

18. SPENDING TRENDS IMPROVING Consumer confidence Personal consumption

19. ECONOMIC OUTLOOK United StatesCanada +2.9%+1.7%

20. S&P 500 SOURCES OF RETURN

21. S&P 500 RECORD PROFIT MARGINS

22. US MARKET OVERVALUED? 15.8x Source: Bloomberg

23. EQUITIES LOOK BETTER THAN BONDS Source: Merrill Lynch BBB Corporate credit yield, Bloomberg Equities 6.0% Corporate bonds 4.7%

24. KEY INVESTMENT RULES Asset class selection comes first Low interest rates => equities Inflation => equities No silver bullet portfolio BUT diversification is the best way to protect against catastrophic losses

25. A BALANCED APPROACH

26. ACTIVE MANAGEMENT

27. OUR TOP-DOWN APPROACH Equitable Life Portfolios Quantitative Technical Fundamental Momentum and sentiment indicators Thematic drivers Market valuation

28. PAR - NOT YOUR TYPICAL BALANCED FUND

29. USE OF ILLIQUID ASSETS Commercial Mortgages: add diversification into an asset class challenging for clients to achieve on their own, by a team of experienced mortgage specialists. Private Placement Loans: provide corporate bond type returns with reduced risk and/or higher yields. Real Estate: adds equity-like returns with less volatility. Similar to commercial mortgages, a diversified portfolio of commercial real estate is challenging for clients to acquire and manage independently.

30. A high quality fixed income portfolio, with long duration, supports the dividend scale Investment Mix Government50% Corporate50% Investment by Term Years to MaturityPercentage 0 to 5 years23% 5 to 10 years19% Over 10 years57% FIXED INCOME PORTFOLIO

31. Performance is enhanced with a solid real estate portfolio, as well as a common and preferred equity program. Investment Mix Equity Type Percentage Common Stock41.2% Real Estate41.8% Preferred Shares16.9% Total Equity assets100.0% EQUITIES AND REAL ESTATE

32. The real estate portfolio is comprised of high quality, income producing properties which are diversified geographically across Canada and by property type. 35% 23% 42% REAL ESTATE PORTFOLIO

33. PAST PERFORMANCE

34. EQUITABLE LIFE ACTIVE BALANCED PORTFOLIOS

35. PORTFOLIO POSITIONING Equitable Life Active Balanced Growth Portfolio Equitable Life Active Balanced Portfolio Equitable Life Active Balanced Income Portfolio

36. Global Neutral Balanced Global Equity Balanced Canadian Neutral Balanced Category Average MER3.12%3.04%2.85% Equitable Life Active Balanced Portfolios 2.42%2.35%2.40% Equitable Life Active Balanced cost advantage +0.7% +0.4% COMPETITIVE MER’S

37. YTD1-YR3-YR Equitable Life Active Balanced Portfolio 8.2%13.6%6.8% Global Neutral Balanced Peer Group 5.5%12.3%7.4% Source: Morningstar, as of August 31 2014 PERFORMANCE

38. 1.Style diversification 2.“Core” funds 3.Cost & transparency REASONS TO OWN