CHOOSE...Choose iA — Individual Insurance, Savings and Retirement Magazine Individual Insurance, Savings and Retirement Magazine — Choose iA 1 5% net rate of return. The net return

2020-2021 Savings Edition

Individual Insurance, Savings and Retirement Magazine

For advisor use only

CHOOSE2020-2021 Savings Edition

Individual Insurance, Savingsand Retirement Magazine

CONNECTED WITH YOURESPONSIBLE INVESTMENT Investing for a sustainable world

THE DIGITAL TRANSFORMATIONBeing present for your clients!

1

Individual Insurance, Savings and Retirement Magazine — Choose iA

Your innovative technological platform for insurance and savings products, offering a simplified experience tailored to your reality.

+250%increase in usage1

Nearly

40,000savings

contracts signed1

Complete, error-free

applications in under

9 MINUTES

EVO Savings in numbers

1 From January 1 to July 31, 2020.

Streamlining insurance

Simplifying savings

RESPONSIBLE INVESTMENT: GROWING IN POPULARITY

Responsible investment assets in Canada reached more than

2 billionCanadian dollar in 2018,

growing 42% compared to 2016.

iA Tip | Our new family of managed socially responsible investment solutions,

the SRI (Inhance) Funds, or ESG funds, may be just the thing for your clients who want to invest responsibly.

Learn more about them on pages 14 –15 and 17.

Source: Global Sustainable Investment Alliance, Global Sustainable Investment Review, 2018

EDUCATION COSTS ARE RISING

50% of post-secondary graduates

have student debt at graduation.

iA Tip | Investing early in an RESP lets your clients tap in to various government grants

of up to $10,800 depending on the province of residence and the amounts contributed. These grants combined with the returns help pay down the bill for post-secondary education and reduce

the likelihood of using a student loan!

SAVING IN TIMES OF CRISIS

In response to the 2020 pandemic, Canadian households increased the percentage of their

disposable income they put towards savings from:

7.6% (Q1-2020)

28.2% (Q2-2020)

iA Tip | The TFSA is a flexible vehicle to grow your clients’ savings tax free, whether for a special project or a rainy day fund. Be sure to suggest it!

FOCUS ON RETIREMENT

31% of people aged 45 to 60 report that their financial preparations

for retirement is insufficient.

iA Tip | It’s not easy to apply a universal mathematical formula to calculate the level of

income needed for retirement because everyone’s financial situation is so vastly different.

One thing is certain though: far too many people are unprepared. Helping your clients plan for their retirement can make a big difference in their lives.

Source: Statistics Canada, Canadian economic accounts key indicators, August 28, 2020

Source: Trends in student debt of postsecondary graduates in Canada: Results from the National Graduates Survey, 2018, August 25, 2020 Source: Statistics Canada, 2020

NUMBERS DON’T LIE!

2

Choose iA — Individual Insurance, Savings and Retirement Magazine

CONTENTS

Advisor digital experience – 6

Our product lineup – 7

Our segregated funds – 8

Better understand segregated fund fees – 9

360° view of iA – 24

Estate planning – 35

Essentials for your clients – 39

Cycle of emotions – 40

RRSP loan – 41

Investment loan – 42

Sales charge options – 44

Tips & tricks – 45

IAG Savings and Retirement Plan – 46

Reference documents – 48

Investment FundsiA Investment Management – 10

External fund managers – 12

New Global fund and ESG funds – 13

Managed solutions – 16

Guaranteed interest funds – 23

High Interest Savings Account – 26

Registered Education Savings PlansMy Education+ and Diploma – 36

Government grants – 37

RESP loan – 38

IAG Savings and Retirement PlanClassic Series 75/75 – 27

Series 75/100 – 28

Prestige preferential pricing – 30

Ecoflex Series 100/100 – 32

FORLIFE Series – 33

iA at a glance(as at December 31, 2019)

4 million+clients

7,400+employees

25,000+advisors

$11.4 billionpremiums, premium equivalents and deposits

$687.4 millionnet income attributed to common shareholders

iA Financial Group

Company profile

3


This year threw us a major curveball and forced us to roll out strategies to adapt and continue our momentum toward success. Our smooth transition to teleworking, the versatility of our employees and the enthusiastic support of our sales teams for our digital tools generated excellent results, despite the exceptional environment. The results are telling: they show that our business model is solid and our distribution network is effective, whatever the circumstances.

At iA Financial Group, we intend to move full speed ahead with enhancements to our client and advisor experience through a number of digital projects— this is one of our five main areas of development for the next few years. Given the lockdowns and distancing imposed in the course of the pandemic, the experience has been completely reconsidered. We’ve had more possibilities than ever to adapt to the needs of our clients and provide greater flexibility than they might ever have imagined.

Particularly in the area of savings, we have made great strides, launching socially responsible investment funds (also known as ESG funds) to meet the needs of a client base that is increasingly concerned about investing in companies that respect the environment and our communities and have impeccable governance. The stellar achievements recently attained in savings point to a very promising future, supported by the sustainable decisions we have made.

Thanks to you and to all our employees, we will continue to grow, ensuring the financial stability of our company, achieving our ambitions and working vigorously to benefit all our stakeholders.

Wishing you every success!

Denis RicardPresident and Chief Executive OfficeriA Financial Group

Connected with you, thanks to you!2020 has been a historic moment for us all. During this turbulent year, each and every business line has been called to adapt, be agile and be resilient. At iA Financial Group, we’ve been fortunate to have cutting-edge technological infrastructure and dedicated teams to get us through this crisis. Everyone has worked tirelessly to ensure the continuity of our operations and expedite the digital transformation of our sales tools—a huge achievement! As a result, we can proudly say that we are a leader in digital solutions, especially in individual wealth management.

2020 has also impacted the financial situation of our clients, who need sound financial advice now more than ever. With our secure, high-performance digital solutions for remote sales, you have been able to connect with your clients in the comfort of their home. Who would have thought that possible just one year ago? With adaptability and determination, you have quickly embraced these new ways of doing business. And despite your interactions being virtual, you have continued providing that human touch while serving your clients’ needs. You have listened and been empathetic with them, reassuring them with your valuable advice. Your clients are now connected with you, thanks to you. Thank you for making that happen!

Economic and market volatility has required us to react quickly. To date, the savings sector has generated excellent results. iA Financial Group still holds first place in net segregated fund sales, as it has since 2016. This success is the sum of all your efforts!

The extraordinary growth of our savings business since the start of the year confirms our leadership and positions us favourably for the future. Once this storm is behind us, we will continue to offer you flexible service adapted to the needs of your clients, whether in person or remotely. We are doing everything we can to provide you the tools you need to go above and beyond, creating an optimal experience for your clients.

So I invite you to read and reread this magazine that is brimming with information you can rely on to provide sound advice to your clients. Keep it on hand as a reference guide. A digital version of the magazine—new this year—will enhance your reading experience, so you can access it whenever, wherever. For the first time in the history of Choose iA, an insurance issue is also coming soon, so stay tuned!

Enjoy your reading!

Renée LaflammeExecutive Vice-PresidentIndividual Insurance, Savings and Retirement

EDITO

RIA

L

new this year will reading experience,cess it whenever,

r the first time of Choose iA,ssue is alsoso stay tuned!

ading!


5

IAG+477%

2000 20202010

$181 billionassets under management (AUM)

and administration (AUA)

Solvency ratio

124%Above the 110% – 116% target range

Data as at June 30, 2020, unless otherwise indicated.

“Sustainable choices to achieve our ambitions”

Denis Ricard President and Chief Executive Officer

Financial strength20 Years on the Stock ExchangeIAG stock growth compared to the S&P/TSX benchmark index of the Toronto Stock Exchange:

S&P/TSX+74%

4


Actions in sustainable developmentESG factors

Environmental

Main impacts

— iA becoming carbon neutral as of January 2020

— $1.7 billion in renewable energy investments over the last 25 years

— Over 20 BOMA BEST certified buildings and six LEED Gold certified buildings

Social

Main impacts

— Relief measures to support clients experiencing financial difficulties directly attributable to the pandemic

— $6 million in donations to close to 500 organizations in 2019, the equivalent of $800 per employee

Governance

Main impacts

— Board diversity policy (women: 45% and men: 55%)

— Score in the Globe and Mail 2019 Annual Corporate Governance Rankings: 7th out of 224 companies, a 6 positions gain!

To learn about all of our sustainable development commitments and achievements, refer to our 2019 Sustainability Report available at:

ia.ca/sustainable-development

38% – Social/community

35% – Healthcare

20% – Education

2% – Environment*

5% – Other

* Excludes amounts for carbon neutrality and additional donations related to COVID-19

2019DONATIONS

An

unparalleleddigital experience

EVO Savings

Web Showcase

iA CONNECTED

Fund performance and overview page

Series 75/100 reset tool

Business Tracker

Prestige family grouping tool

RESP: Illustration and electronic enrolment

Innovative digital tools within your Advisor Centre

Start good savings habits — Systematic savings

Build up an emergency fund or start saving for financial goals

— Systematic savings — TFSA – High interest savings account – Guaranteed interest funds – Daily interest funds+

Save for children’s education — RESP – My Education+ (guarantee 75/75) – Diploma (guarantee 100/100)

Maximize leverage to purchase a first home

— RRSP for HBP or retirement

Their wealth over time

Maximize government grants (education savings)

— RESP/RESP Loan

Maximize registered savings and diversify assets

— TFSA/RRSP/Non-registered – Guaranteed interest funds – High interest savings account

— Segregated funds – Classic Series 75/75 – Series 75/100

Protect accumulated savings against market downturns or creditors

— Segregated funds – Series 75/100 (including resets) – Prestige family grouping – Ecoflex Series 100/100

Profit from leverage to accelerate the growth of their wealth

— Investment loan — RRSP Loan

Maximize sources of retirement income

— RRIF / LIRA / LIF / IPP

Benefit from a stable lifetime guaranteed income

— FORLIFE Series / Single-premium annuity

Leave an inheritance and protect their estate in the event of death

— Segregated funds – Series 75/100 – Ecoflex Series 100/100

— Inheritance Your Way

Access liquidity to complement retirement income

— TFSA – High interest savings account – Guaranteed interest funds (GIF)

Provide for their grandchildren’s future — RESP

BUILD THEIR WEALTH

30 TO 55 YEARS OLD

NEEDS PRODUCT OFFERING

MANAGE THE GROWTH

OF THEIR ASSETS

18 TO 30 YEARS OLD

PROTECT AND GROW

THEIR WEALTH

AGE 55+

7


98

Choose iA — Individual Insurance, Savings and Retirement Magazine Individual Insurance, Savings and Retirement Magazine — Choose iA

1 5% net rate of return. The net return on segregated fund investments was adjusted by -0.25% to take into account a generally higher MER.2 Probate fees vary according to province. The Ontario estate administration tax in effect at January 1, 2020 is used in the example.3 Professional fees include legal and accounting fees. These vary based on the complexity of the file.4 Fees for the estate executor vary based on whether the executor is internal or external to the estate. The example assumes an external executor.5 Redemption fees vary by option and by company. Fees of 2% on the last three years of the client’s deposits are applied in the example.

Segregated funds offer numerous advantages for your clients, here is an example:

Your client deposited $25,000 in his/her contract 15 years ago, then $7,500 per year until he/she dies at 68 years of age.

Mutual funds Segregated funds

Market value at death1 $213,800 $209,000

Probate fees2 – Up to 1.5% $2,460 $0

Professional fees3 – Up to 5% $8,600 $0

Fees for estate executor4 – Up to 5% $6,400 $0

Redemption fees5 – Up to 7% $500 $0

Total fees $17,960 $0

Net value and return at death $195,840 | 4.09% $209,000 | 4.75%

Difference - $13,160

Payment to beneficiaries No – Paid to the estate and can be long before paid to beneficiaries

Yes – Paid quickly and directly to beneficiaries

Better understand segregated fund fees

All investments have management fees. It's important to understand what these fees include.

Example investment: $10,000 Management fees1: 2.64%2

1 Fees deducted from the assets of each fund at the valuation date. 2 Diversified Fund, Classic Series 75/75, IAG SRP. 3 May vary based on funds and series chosen. 4 Other fees will apply with Series 75/100, 100/100 and FORLIFE. 5 Certain conditions apply.

2.64%($264)

$10,000

1.07% ($107)

Fund management

– Portfolio management and investment selection– Performance monitoring– Investment research and development

Operating expenses

– Customer support and digital services– Regulatory filing fees (legal, accounting, etc.)– Bookkeeping fees

1.00%($100)

Professional financial advice and agency fees

– Understanding of financial needs– Setting of financial goal(s) – Regular and ongoing goal assessments– Compliance and monitoring of transactions– Professional development and licences

0.25%3

($25)

Advantages of Segregated Funds

– Capital protection upon maturity or death– Protection of investment gains through resets4

– Possibility of avoiding probate fees – Quick settlement in case of death– Possible creditor protection5

0.32%($32)

Sales taxes Applicable government taxes

Simplicity. Protection. Growth.

Our segregated funds make all the difference in your clients' lives!

11


Sébastien Mc MahonSenior manager

Years of experience: 16

Clément GignacLead manager


Managed solutions

Sevgi IpekVP and Lead manager

for international equitiesYears of experience: 26

Pierre ChapdelaineLead manager


Jean-Pierre ChevalierManager


U.S. and international equity (U.S., international and global)

David CaronLead manager


Marc GagnonVP and Lead manager


Canadian equity (small cap and growth)

iA Investment Management's Seasoned Team

Jean-Pierre d’AgnilloVP and Lead manager


Alexandre MorinLead manager


Fixed income (short-term, corporate and government bonds)

Louis GagnonSenior manager


Sébastien VaillancourtSenior manager


Innovation and quantitative strategies

Donny MossSenior manager


Canadian and U.S. equity (dividend)

10

Go to ia.ca/funds-performanceto quickly and easily check on your segregated fund performance!

ent Magazine — Choose iA

Your Fund and Economy Resources

Fund Performance and Overview page

An overview of our range of funds

— Favourites feature lets you keep track of selected funds

— Data can be downloaded in Excel format

— Personalized printing

— Fund profiles and fact sheets, portfolio manager videos and more helpful documents, all together in one place

Sign up for our weekly newsletter!Clément Gignac and his team present articles

and videos to help keep you up to speed on the economy and the financial markets.

Economic News

Indiviviviviiiiduududududdd l Insuran Savin andandandandndndndndddd RRRetiremeidual Insurance, Savings an

Did you know…

Our Chief Econom

ist

has given more tha

n

80 media interview

s

in the first half

of 2020 alone!

A team of nearly 185 people, including 110 investment professionals (including 45 Chartered Financial Analysts (CFA))1

1 Data as at June 30, 2020

$95.3Bof the Group's assets under management (AUM) managed by iAIM and our management subsidiaries


Companies with a durable

competitive advantage

Companies with a positive slope to

their free cash flow growth

Companieswith attractive cash

flow driven valuations

Market inefficiency: Duration effect

Market inefficiency:Mispricing

QUALITY INTRINSICVALUE GROWTH

VALUATION

321

INVESTMENT FUNDS

Global Opportunities (Loomis Sayles) FundSuperior performance across the globe!

The Global Opportunities (Loomis Sayles) Fund is…

— A segregated fund offering exclusive to iA Financial Group!

— An unconstrained global equity strategy that invests across multiple sectors, regions and countries in pursuit of a strong total return

— A high-conviction portfolio of 35–65 securities of quality enduring businesses that the managers view as superior long-term investments

Fundamental bottom-up approach:

— Capturing risk-adjusted outperformance by capitalizing on two key market inefficiencies (duration effect and mispricing)

— Investing for alpha through three drivers of long-term outperformance:

To learn more about Global Opportunities (Loomis Sayles) FundSee the Fund Performance And Overview page at ia.ca/funds-performance and the Know your funds document (F13-1052A).

Loomis, Sayles & Company, L.P.Portfolio Managers

Eileen Riley, CFA

Lee Rosenbaum, MBA

Did you know…

Loomis Sayles’

assessment of ES

G factors

(environmental, soc

ial

and governance) is

one of

the seven characte

ristics

they use to evalua

te the

quality of a compa

ny.

Loomis, Sayles & Company, L.P. is a signatory of the United Nations Principles for Responsible Investment (PRI)

12

A wide range of funds, supported by renowned external managers

A strong offering of fundsmanaged externally by brand-name managers and

smaller boutique firms with specific investment expertise

High standards in evaluation and development that set us apart

At iA Financial Group, we have an internal team dedicated to the selection and monitoring of external managers that evaluates

them on the basis of their investment team, process and performance.

Firm and investment team

Reputation of the firmCompliance

Stability of investment teamExperience and expertise

Accountability

Investment process

Disciplined approachConsistency with

management styleRisk management and diversification

Performance

Stability of returnsPerformance versus

benchmarks and peersUnderstanding of

over/underperformanceLong-term vision

A wholly-owned subsidiary of iA Financial Group


13

NEW FUND OFFERED


Strict stock selection criteria

Vancity Investment Management (VCIM) uses an integrated approach that harmoniously combines environmental, social and governance (ESG) criteria with the fundamental financial analysis. To be considered for investment in an SRI (Inhance) fund, a stock must satisfy strict requirements with respect to the following analysis criteria:

1. Financial analysis of the company ($)

Several financial parameters are assessed as well business models, competitive advantages and quality of the management team

2. ESG analysis

The ESG analysis makes it possible to identify risks and opportunities that are not always visible using only traditional financial parameters. VCIM therefore assesses companies’ business practices using three criteria:

Exclusion criteria

VCIM does not invest in companies whose primary line of business involves:

Inclusion criteria

Conversely, VCIM seeks to invest in progressive companies in the areas of the development of renewable energy, water treatment infrastructure or cures for deadly diseases.

Commitment to shareholders: from dialogue to actions!

VCIM makes sure to have active and proactive dialog with industry leaders to ensure they meet their commitments with respect to ESG standards and constantly ensure these standards are met for the selected holdings.

Environmental protection

Fight on climate change

Resource sustainability

Pollution reduction

Environmental

Relationships with employees, clients and communities

Work conditions Health and safety

Respect for local communities

Social

Governance practices

Executive compensation

Anti-corruption practices

Board of director diversity

Governance

INVESTMENT FUNDS

Discover our new managed socially responsible investment (SRI) solutions

— SRI Moderate (Inhance) NEW

— SRI Balanced (Inhance)— SRI Growth (Inhance) NEW

Turnkey solutions for investors who want to invest responsibly in the pursuit of their financial objectives.

— Combines analysis of environmental, social and governance (ESG) factors performance with fundamental financial analysis

— The best of both worlds: exceptional performance potential and positive social and environmental impacts

Companies are assessed based on seven main ESG criteria:

1– Governance2– Environmental leadership3– Employee relations 4– Employee diversity 5– Community relations 6– Human rights 7– Product sustainability

Tobacco MilitaryweaponsAdult

entertainment GamingNuclearpower

Fossilfuels

Vancity Investment Management is a signatory of the United Nations Principles for Responsible Investment (PRI).

Andrew Simpson, CFA

Portfolio Manager Vancity Investment Management

Demystify socially responsible investing: easier than you think!

82% of investors say they would consider allocating a portion of their portfolio to SRI!1 Refer to the document titled Socially responsible investing (F13-1040A) to learn more about this 23 billion dollar global market segment.

Be ready to discuss it!

SRI (Inhance) fundsInvesting for a sustainable world

For more information about the SRI (Inhance) funds, refer to page 17 of this magazine, the Fund Performance and Overview page at ia.ca/funds-performance and the Know your funds (F13-1052A) document

Did you know…

77% of investors

believe that compa

nies

with good ESG

practices are bette

r

long-term investme

nts.1

1 Source: Responsible Investment Association, June 30, 2020.

14 15



The SRI (Inhance) funds are…

— Managed socially responsible investment solutions, also known as ESG funds (funds that meet strict environmental, social and governance criteria)

— Diversified funds where the investment objective aims to produce competitive long-term returns, with socially responsible investments

— Investing in sustainable companies that provide conditions that promote long-term growth and strike a suitable balance between the interests of shareholders, clients, employees and communities

Why choose the SRI (Inhance) funds?

— Turnkey solutions for investors who want to invest responsibly while pursuing their financial objectives

— Reduce non-traditional risk: the team incorporates the analysis of environmental, social and governance (ESG) factors in the traditional financial analysis

— The management firm, Vancity Investment Management, is a pioneer in socially responsible investing (SRI)

Included in the SRI (Inhance) funds

Underlying funds – Target allocations Moderate Balanced Growth

IA Clarington Inhance Bond SRI Fund 56% 40% 28%

IA Clarington Inhance Monthly Income SRI Fund2 20% 18% 15%

IA Clarington Inhance Canadian Equity SRI Class 10% 18% 25%

IA Clarington Inhance Global Equity SRI Class 14% 24% 32%

1 New asset allocation for the SRI Balanced (Inhance) Fund2 An income-based fund composed of Canadian equities, global equities

and fixed-income securities.

For more information about the new SRI (Inhance) fund family, refer to pages 14-15.

SRI (Inhance) fundsInvesting for a sustainable world

Andrew Simpson,CFAPortfolio Manager

undsfudorl

Managed solutions: Designed to simplify your life!iA Financial Group offers many turnkey managed solutions to effectively meet your clients’ needs.

ManDesiyouriA Finansolution

Why choose managed solutions?

— For their simplicity, effectiveness and optimal diversification

— To take advantage of a multi-management approach set up by experts

— For a turnkey investment solution that requires little intervention from you

— For tracking of asset allocations, investment components and rebalancing backed by the strength and expertise of iA Investment Management

Solutions offered

Focus Funds

— Focus Prudent — Focus Moderate — Focus Balanced — Focus Growth — Focus Aggressive

Global Asset Allocation Funds (iAIM)

— Global Asset Allocation Security (iAIM)

— Global Asset Allocation (iAIM)

— Global Asset Allocation Opportunity (iAIM)

Diversified Funds

— Diversified Security — Diversified — Diversified Opportunity— Diversified Income

Selection Funds

— Selection Prudent — Selection Moderate — Selection Balanced — Selection Growth — Selection Aggressive

OPTIMIZED SOLUTION!

SRI (Inhance)

— SRI Moderate (Inhance)

— SRI Balanced (Inhance)

— SRI Growth (Inhance)

Indexia Funds (index solution)

— Indexia Prudent — Indexia Moderate — Indexia Balanced — Indexia Growth — Indexia Aggressive

(i(iAIA M)

NEW ESG

SOLUTION!

1716

BALANCED1

%

28

45

27

EX

PE

CTE

D R

ETU

RN

%6020

20

MODERATE

NEW

%30

35

35

GROWTH

NEW

RISK

Fixed Income Canadian Equity Global Equity


FUN

DS

FUN

DS

Focus Funds are…

— Five turnkey portfolio funds that do not require any intervention from the advisor

— Well-diversified funds by asset class, geographic region and economic sector, designed to ensure optimal return potential

— Access to a multi-management approach that offers different complementary management styles, ensuring a well-diversified portfolio

Why choose Focus Funds?

— Simplicity and efficiency: Simple and predictable portfolios with a fixed asset allocation and monthly rebalancing

— Ideal solution for investors who want their portfolio to reflect their risk tolerance at all times, regardless of the economic context

— Expertise: World-class portfolio managers selected by our experts and who have earned our trust over the years

18 19

INCLUDED IN FOCUS FUNDS INCLUDED IN SELECTION FUNDS

Fidelity Insights

IA Clarington Loomis Global Multisector Bond

— Bond— Canadian Equity - Growth— Thematic Innovation— International Equity

The Focus Funds are composed of funds that combine the expertise of iA Investment Management with the expertise of several world-famous managers.

— Optimization of the underlying funds' allocation

— Change in the neutral asset allocation for each profile (income vs. equities)

— Shift towards global investments

NEW!

Focus FundsDesigned to simplify your life

Sébastien Mc MahonM.E.Sc., PRM, CFAOver 15 years of experience in the investment industry

AGGRESSIVE

MODERATEPRUDENT

BALANCEDGROWTH

%70

10.5

19.5

%55

15.3

29.8%

21

4039 %

25

26

49% 31.5

10

58.5

RISK

EX

PE

CTE

D R

ETU

RN


Selection Funds are…

— A family of five funds made up of various sub-funds selected for optimal diversification and manager expertise

— Portfolios that benefit from an approach based on active asset allocation and sub-funds selection, while keeping the level of risk in line with their investor profile

Why choose Selection Funds?

— Sébastien Mc Mahon, Senior Portfolio Manager, Diversified Funds and Economist, has the leeway to deviate 10% above or below the target allocation of investments in equities and bonds

— Team of professionals active in day-to-day asset mix

— Objective to maximize returns, by taking advantage of market opportunities, and minimize losses during down markets

Portfolio Manager:

Sébastien Mc MahonM.E.Sc., PRM, CFA

Selection FundsA turnkey solution for managing your investments

AGGRESSIVE

MODERATEPRUDENT

BALANCEDGROWTH

%80

8

12

%6510

25

%

15

50

35 %30

20

50%

85

87

RISK

EX

PE

CTE

D R

ETU

RN



FUN

DS

FUN

DS

Diversified FundsActively managed solutions combining expertiseand flexibility in order to seize opportunities

Strategies that may be used to reduce portfolio volatility

— Active currency management

— Purchase of index put options to protect against the risk of major losses

— Investments in gold (and gold mining) that are negatively correlated with equities during periods of risk aversion

— Investments in preferred shares that outperform when short rates rise

Clément GignacM.E.Sc.Senior Vice-President and Chief Economist since 2012Over 30 years of experience in the investment industry

Portfolio Manager:

Clément GignacM.E.Sc.

Diversified Funds are…

— A family of four portfolio funds managed by a committee led by Clément Gignac, Senior Vice-President and Chief Economist

— Portfolios that benefit from an active asset allocation approach based on economic and market forecasts

— Guided by the expertise of a team of managers looking after day-to-day investment decisions

Why choose Diversified Funds?

— The ideal solution for investors who want to benefit from the expertise of a highly experienced team of managers and a dynamic approach

— Active management of exposure to foreign currency to increase return potential and reduce volatility

— Management committee with a great deal of discretion in terms of asset allocation; risk profile can therefore occasionally change based on the economic environment

20 21

DIVERSIFIEDSECURITY

INCOMEOPPORTUNITY

RISK

EX

PE

CTE

D R

ETU

RN

%70

15

15

% 5025

25

%35

40

25

%

40

3030


Global Asset Allocation Funds (iAIM)Global equity managed solutions that provide access to private investments

Long-term target asset mix

Funds

Global Asset

Allocation Security (iAIM)

Global Asset

Allocation (iAIM)

Global Asset

Allocation Opportunity

(iAIM)

Canadian Fixed Income 20% 12% 5%

Global Fixed Income 35.5% 25.5% 12%

High Yield Income 4.5% 3.5% 3%

Floating Rate Loan 2.5% 1.5% 0%

Private Debt 3.5% 3.5% 2%

Mortgage 4% 4% 3%

Total – Fixed income 70% 50% 25%

Canadian Equity 5% 10% 15%

Global Equity 17.5% 32.5% 50%

Private Equity 2.5% 3.5% 6%

Infrastructure 2% 2% 2%

Real Estate 3% 2% 2%

Total – Equity 30% 50% 75%

Total – Private alternative and real assets

15% 15% 15%

Why choose Global Asset Allocation Funds (iAIM)?

— One of the first segregated fund managed solutions in Canada that provides access to private alternative investments, to which most retail investors do not have access, and which offer many advantages

— Similar to the Diversified funds, offering increased diversification within several types of asset classes and multiple geographic regions throughout the world

— Expertise of a highly experienced team of managers looking after day-to-day investment decisions

rtise



FUN

DS

Asset mix target portfolio

Funds Prudent Moderate Balanced Growth Aggressive

Fixed income 70% 55% 40% 25% 10%

Canadian Bond Index (BlackRock) 50% 37% 25% 15% 5%

Global ex-Canada Fixed Income (CAD Hedged) (Vanguard)

20% 18% 15% 10% 5%

Equity 30% 45% 60% 75% 90%

Canadian Equity Index 10% 15% 20% 25% 30%

U.S. Equity Index (BlackRock) 9% 13.5% 18% 22.5% 27%

International Equity Index (BlackRock) 9% 13.5% 18% 22.5% 27%

Emerging Markets Equity Index (BlackRock) 2% 3% 4% 5% 6%

Indexia FundsLow-cost index solutions

22 23

Choose the Indexia Fund that suits each investor profile

AGGRESSIVE

MODERATEPRUDENT

BALANCEDGROWTH

RISK

EX

PE

CTE

D R

ETU

RN

% 30

10

60%

25

25

50%

20

4040

%55

15

30

%70

10

20


Indexia Funds are…

— Five global index portfolios from prudent to aggressive

— Low fees starting at 1.84%1

— Passively managed – portfolios rebalanced monthly

Why choose Indexia Funds?

— Ideal solutions for investors who believe in passive management and who want to enjoy all the benefits of segregated funds with lower management fees

— Ideal solutions for investors wanting to optimize their exposure to the global market

1 For the Classic Series 75/75 Prestige as at July 2020. To see all other current fees, refer to the document entitled Fund Codes and Management Expense Ratios (F13-1000A).

Guaranteed interest fund (GIF)Offer these flexible, risk-free funds

Capital 100% guaranteed

Rate guaranteed up to 60 days, very practical for terms that are not immediate

Redeemable at any time, fees may apply

Assets invested in GIFs count toward the $300,000 eligibility threshold of the Prestige preferential pricing

Enhancement of interest rate based on total assets invested in a GIF in one contract (automatically) or in all contracts (upon request)

More advantageous than the GICs offered by banks

Tax advantage:

Non-refundable tax credit applicable on the first increment of $2,000 eligible pension income, starting at age 65.

Beneficiary designation:

— At death, the money is paid directly to the designated beneficiary

— No estate settlement fees

— Creditor protection

Highly competitive

rates

for terms of

1-, 2- and 3-year

Visit ia.ca/fixed-income-investment-rateevery week to see our GIF rates!

Did you know…

You can lower you

r

commission to off

er

your clients a bette

r

rate varying from

+0.05% to +0.25%

!

paym

ent of

bills

overh

ead ex

penses

Incom

e repl

acemen

t

DISA

BILITY

IN

SURA

NCE

fina

ncia

l sec

urity

prot

ect y

our

love

d on

es’

Tem

pora

rily

or p

erm

anen

tly

LIFE

INSU

RA

NC

E

expenses associated with a critical illness

your financial obligations and

Financial assistance to cover

CRITICALILLNESS

growth p

otenti

al

Maxim

ize

long-term projects and

for the unexpected

Save for retirement, short- and

or grandchild’s education

Save for a child’s

SAVING

S AN

D R

ETIREM

ENT

Savings and retirement plans

— RRSP, TFSA, non-registered

— RRIF, LIRA, LIF, IPP

Segregated funds

— Classic Series 75/75

— Series 75/100

— Ecoflex Series 100/100

— FORLIFE Series

Guaranteed investments

— Guaranteed interest fund

— Daily interest fund+

— High interest savings account

— Annuities (guaranteed income)

Prestige preferential pricing

— Classic Series 75/75 Prestige

— Series 75/100 Prestige

360°OFFER

Loan

RRSP, RESP, investment loan

Term life insurance

— T10, T20

— Pick-A-Term 10 to 40 years

— Access Life T15, T20, T25

Whole life insurance

— L10, L20, L65, L100, T100

— Access Life L100

Participating life insurance

Payable 10 years, 20 years, to 100 years

Universal life insurance

— EquiBuild

— Genesis level-cost and YRT

Cancer Guard

T10, T20, up to age 75

Transition

— 4 or 25 illnesses

— T10, T20, T75, T100

Registered Education savings plan

— My Education+

— Diploma

Accident insurance

— Acci 7 PLUS

— Accifamily

Disability

— Superior Program

— Universal loan insurance

— Acci-Jet Program

= Simplified issue

24 25


Individual Insurance, Savings and Retirement Magazine — Choose iAChoose iA — Individual Insurance, Savings and Retirement Magazine

High Interest Savings Account Simple, accessible, risk free

A beneficial optiondesigned for your clients’ needs and situation

Whether your clients want:

— To wait for the right time to invest, for example, following a major cash inflow

— Risk-free saving for a major purchase, or

— A contingency fund for the unexpected.

Distinctive features

Beneficiary designation and possibility of creditor protections

The same advantages as segregated funds, without having to worry about a stock market downturn.

Reduced management fees (MER) for segregated funds

The balance of the high interest savings account is considered when determining eligibility for Prestige preferential pricing, which reduces the management fees for segregated funds.

No additional contract to open

The high interest savings account is included in the same contract as the segregated funds and guaranteed interest funds.

Key attributes

Growth — High yield— No withdrawal fees— No management fees

Accessibility — No minimum investment— Withdrawals possible at

any time— Offered in:

— All the main iA savings products

— All registration types

Security — No risk— Possible creditor protection For the current interest rate, visit

ia.ca/fixed-income-investment-rate.

Did you know…

Two thirds of Cana

dians

(64%) have an em

ergency

fund sufficient to

cover 3 months’

worth of expenses

1?

1 Source: Financial Consumer Agency of Canada, 2019 Study.

Classic Series

75/75

For maximum capital growth

Advantages

Allows your clients to quickly grow their savings with fees comparable to those on mutual funds

Helps diversify your clients’ investments and takes advantage of the best market opportunities with a vast choice of funds

Protects capital with a 75% guarantee at death

— Global Opportunities (Loomis Sayles)



To see all funds offered for the Classic Series 75/75, refer to the document entitled Fund Codes and Management Expense Ratios (F13-1000A)

NEW

FUNDS

OFFERED

2726

Maximum age (for initial investment)

Contract type Maximum age

– Non-registered plan / TFSA

– RRIF / LIF transferred from another RRIF / LIF

Age 90

– RRSP/LIRA/locked-in RRSP

– RRIF / LIF transferred from an RRSP / LIRA /locked-in RRSP

Age 71

PRESTIGE preferential pricing

Prestige preferential pricing is designed for investors with significant assets and helps contribute to increased asset growth through reduced management fees.

For details about eligibility and the advantages of family groupings, see pages 30-31.

Series guarantee

Guarantee at death

75% of all premiums invested in series funds

Guarantee at maturity


Maturity date of the guarantee

December 31 of the year the annuitant turns 100


Series 75/100Growth and estate protection combined

1 75% guarantee at maturity and on deposits made at age 85 or over.2 Possible thanks to beneficiary designation.

With the reset e-tool, it takes 30 seconds to make a difference!

1. Allows for electronic resets by contract or for several contracts at the same time

2. Annual resets can be programmed, providing peace of mind

3. Highlights your advisory role with personalized confirmations sent to the client!

Series guarantees

Guarantee at death1










Before age 85



Age 71

PRESTIGE preferential pricing

Prestige preferential pricing is designed for investors with significant assets and helps contribute to increased asset growth through reduced management fees.

For details about eligibility and the advantages of family groupings, see pages 30-31.

— Global Opportunities (Loomis Sayles)



To see all funds offered for Series 75/100, refer to the document entitled Fund Codes and Management Expense Ratios (F13-1000A).

Series 75/100 now offers even more!

— A competitive 100% guarantee at death for deposits made before age 851

— Annual reset available up to age 851

— Access to one of the best fund lineups, no limits

— Quick, confidential payment upon death to the person of the client's choice, without waiting for estate settlement2

28 29

NEW FUNDS

OFFERED

See how resets prove their worth

At his death, $145,000 would be paid to his spouse (designated beneficiary), i.e. the amount of the last reset in year 5. This is a significant increase over the fund’s current market value of $120,000.

$145,000 locked in

If David were to

pass away in year 10

You did a reset to lock in his gains each year in which it was favourable.

You did this using the reset e-tool in the Advisor Centre.

Reset

David made an initial deposit of $100,000 in a Series 75/100 segregated fund.1

$100,000

Annual reset

Death benefit

Market value at time of death

Market value

Secured guaranteed value

Period secured by reset

$150,000

$140,000

$130,000

$120,000

$110,000

$100,000

$90,000

$80,000

$0

1 3 5 7 9 11 13 15

Year

Date of death

$25,000

$145,000

$120,000

31


Grow and retain your clientele by promoting…

— Family groupings allowing your clients to benefit from reduced management fees through Prestige preferential pricing

— The chance to offer this advantage to extended family members, regardless of the value of their assets or their place of residence—a feature unique to iA Financial Group!

— The option for all business shareholders to apply their company contract assets toward a personal grouping

— Access to the advantages of segregated funds at a lower cost

Significant gains starting from the first year!

Sample investment scenario:

— Individual or family grouping with $350,0002

— Prestige preferential pricing providing a 0.38% reduction in management fees

— Annualized net returns of 4.85% over 20 years, taking into account the fee reduction (4.47% + 0.38%)

1 Note that surrenders reducing the value of eligible assets to below $300,000 continue to trigger client ineligibility.

2 I nvested in the Series 75/100 Diversified Income Fund with a 15-year annualized net return of 4.47%.

Eligibility for Prestige preferential pricing

Traitement rapide | Peut être fait à distance

A single, quick online process

This fully online process lets you grant Prestige preferential pricing to iA clients quickly, without you having to go anywhere.

30

Prestige preferential pricingGive Prestige to your clients and their families

Advantages

Management Expense Ratio reduced up to 0.59%

Applies to all funds in the IAG SRP Classic Series 75/75 Prestige and Series 75/100 Prestige and My Education+

Eligible assets: Segregated funds, guaranteed investment fund (GIF) and high interest savings account

Once the $300,000 eligibility threshold has been reached, clients remain eligible for Prestige preferential pricing even if market values decline!1

Amounts presented are for information purposes only. iA Financial Group cannot guarantee segregated fund returns. Be sure to know your client’s level of risk tolerance in order to choose the most suitable investment option.

10 years l $20,040

20 years �l $63,212

1 year l $1,330

Individual

When the $300,000 eligibility threshold is reached:

— iA Financial Group automatically transfers fund units to equivalent Prestige Series funds

— Prestige preferential pricing applies

If the client wants, a grouping can be created to share this privilege with extended family members, regardless of the value of the assets they hold or their place of residence.

Grouping

With the advisor’s assistance, family grouping is a way for the client to pool assets with those of family members residing at the same address. When the $300,000 eligibility threshold is reached for the family grouping:

— iA Financial Group automatically transfers fund units to equivalent Prestige Series funds

— Prestige preferential pricing applies

The client can share this benefit with extended family members, regardless of the value of the assets they hold or their place of residence. These new members will be added by the advisor to the initial grouping.

Quick processing | Can be done remotely

Creation of grouping in

Advisor Centre

Email sent automatically

to clients (in which consent

is requested)

Client consent provided via

My Client Space

Automatic fee reduction

Sharing with extended family

(no consent required)

Information automatically

sent to all clients eligible for

the grouping’s Prestige

preferential pricing

and to the advisor(s)

Letter of welcome and confirmation

of transaction



For lifetime guaranteed income

Advantages

Provides clients with a source of stable lifetime guaranteed income as well as access to the market value of their investments

Offers estate protection in the event of death

Allows clients to grow their savings while benefitting from protection for their retirement income against market downturns

Fund selection

— FORLIFE Guaranteed Maximum Income

— FORLIFE Guaranteed Income & Growth

The FORLIFE Series gives you the choice between two stages:

1. Savings Stage: Offers a minimum income guarantee1

2. Income Stage: Offers FORLIFE lifetime guaranteed income

Income Stage and guarantees

FORLIFE Income Market Value X Current Income Rate

Current income rate

Reviewed periodically and determined based on age, gender and interest rate levels2

Resets of lifetime guaranteed income

Automatic every three years

Guarantee at death










Age 90



Age 71

1 See Product Summary for details regarding the Savings Stage.2 Once income payments have begun, income may only be adjusted upwards as a result of resets.3 CLHIA, Canadian Life & Health Insurance Facts - 2019 Edition

Did you know…

Annuity payments

on

employer-sponsore

d

and individual prod

ucts

increased by 76% o

ver the

past decade to $

48.7B.3





Before age 85



Age 71

Ecoflex Series

100/100Advantages

Offers your clients 100% capital protection at the guarantee maturity date and ensures estate protection in case of death

Offers your clients the possibility to maintain their investment earnings in case of market downturns

Offers the best of both worlds by allowing your clients to be fully invested in the markets and have the best possible protection for their savings

— SRI Moderate (Inhance)— SRI Growth (Inhance)

To see all funds offered for the Ecoflex Series 100/100, refer to the document entitled Fund Codes and Management Expense Ratios (F13-1000A).

Series guarantees1

Guarantee at death2


Guarantee at maturity2



Between the annuitant’s 60th and 71st birthdays and at least 15 years after the date of the first purchase of fund units in the series

1 Please refer to the Product Summary for more details on guarantees. 2 Resets of the guaranteed minimum value (GMV):

– At maturity and at death: up to four times per year (upon request), until 15 years before the maturity date of the guarantee– After that: reset of the GMV at death once a year up to age 80 (upon request)

For total capital security

3333

FORLIFE Series

NEW

FUNDS

OFFERED

32

Individual Insurance, Savings and Retirement Magazine — Choose iAChoose iA — Individual Insurance, Savings and Retirement Magazine

Using the deferred guaranteed income maximization strategy for three years, Jack increases his lifetime income by 12% and will receive a guaranteed annual income of $6,370 starting at age 66.

Here is an example for Jack, age 63…

— Jack has $150,000 accumulated in registered savings.

— He would like to ensure himself a stable, guaranteed retirement income that he will need in three years.

— The current income rate1 for a 63-year-old male is 3.78% under the FORLIFE Guaranteed Maximum Income Fund.

— The amount of his annual lifetime guaranteed income is $5,670.

His advisor recommends for him to immediately invest in the FORLIFE Series Income Stage and use his guaranteed annual income to generate a bigger annual income in three years.

Age 63 Age 64 Age 65 Age 66

$5,670

$6,123$6,370

4%8%

12%

$5,889

Deferred guaranteed annual income

Initial annual income

Increase in lifetime income

1 The current income rate is reviewed periodically and is determined based on age, gender and interest rate levels. The current income rates used in the example are as at August 7, 2020.

The strategy is simple…

A few years before your client retires and needs to start relying on income from savings, you can secure an annual lifetime guaranteed income for your client which can be increased each year. Here's how:

Secure: You deposit your client's savings into one of the FORLIFE Series Income Stage funds. This will secure an annual lifetime guaranteed income amount based on the current income rate.

Increase: Each year, you have your client's guaranteed annual income reinvested in the same FORLIFE Series Income Stage fund. These annual deposits will increase the annual lifetime guaranteed income, and can be made every year for as long as your client wishes to continue deferring this income.

Maximization of deferred guaranteed income can be of interest to clients who:

— Have accumulated sufficient savings, but are wary of the risks associated with market uncertainties as they approach retirement

— Are not sure when they will need to start receiving their retirement income, but would like to increase their lifetime guaranteed income if possible

— Want the security of a stable, guaranteed source of retirement income while maintaining access to their capital

Deferred guaranteed income maximization strategy

34

FORLIFE Series

Benefits for your clients

— Control assets: Lets ownership of the savings contract be transferred at death to whomever they choose, ensuring its continuity without any death benefit being payable

— Protect loved ones: Provides coverage for the spouse and designated beneficiaries (e.g. children)

— Enjoy tax benefits: Enables the contract to be transferred on a tax-deferred basis without having to go through the estate

Estate planningLaying the groundwork

Recent events may have renewed your clients’ focus on protecting their assets, ensuring their family’s financial security and determining how best to leave an inheritance to their loved ones at death.

iA Financial Group offers two ways to lay the foundation for successful estate planning:

1. Ensure contract continuity through a successor annuitant designation

This designation aims to ensure the financial security of loved ones, the continuity of the contract and the fulfillment of your clients’ wishes. It provides several benefits for both you and your client. Properly structuring the designations on the contract can make all the difference!

Benefits for you

— Touch base on the client’s estate planning: Lets you learn about or review the client’s wishes at death and puts you in touch with the beneficiaries, who are often the next generation

— Build long-term loyalty with clients and their loved ones: Increases the likelihood of in-force contract continuity after death, as well as asset retention

— Strengthen the bond of trust resulting from your sound advice

— Access higher net worth clients

35

2. Inheritance Your Way: to look after the heirs, even afterwards

If your client wants to leave an inheritance instead of ensuring the continuity of the contract, a lump-sum payment may not be suitable for all heirs.

Inheritance Your Way is a product that lets your clients pay their heirs the amounts accumulated in their savings contracts, in the form of:

— A one-time payment

— An annuity certain payment

— A life annuity payment

As many possible combinations as there are heirs!

Inheritance Your Way is designed for clients with sizable portfolios and with one or more of the following situations:

— They worry that their heirs will have difficulty managing a large inheritance

— They have an heir who will require regular income for special care throughout his or her life

— They want their inheritance transferred gradually

— They want to avoid the cost of setting up a trust

See Successor Annuitant Concepts (SRM503A-29), Estate Planning (F13-706A) and Inheritance Your Way (F13-925A) documents.

37


The RESP, a winning choice for a child’s future

1 To see all funds offered for My Education+, refer to the document entitled Fund Codes and Management Expense Ratios (F13-1000A).2 See the Information Folder for more information on these fees and how they are calculated.3 Access to these features required.

Federal grants

The Canada Education Savings Program (CESP) is a federal initiative that adds to the subscriber’s contributions through two different types of grants.

Canada Education Savings Grant (CESG)

Canada Learning Bond (CLB)

Annual grant (% of contributions) 20%

Limit of $2,000 per child for eligible families

Annual limit (per child) $500

Lifetime maximum (per child) $7,200

Additional grant (% of contributions) Based on net family income, 10% or 20% of the first $500 invested each year

Provincial grants

Certain Canadian provinces encourage families to save even more by offering additional grants.

Quebec Education Savings Incentive (QESI)

Saskatchewan Advantage Grant for Education Savings (SAGES)1

British Columbia Training and Education Savings Grant (BCTESG)

Annual grant (% of contributions) 10% 10%

One-time grant of $1,200

Application must be submitted between the child’s 6th birthday and the day before the child's 9th birthday

Annual limit (per child) $250 $250

Lifetime maximum (per child) $3,600 $4,500

Additional grant (% of contributions) Based on net family income, 5% or 10% of the first $500 invested each year

—

1 Until further notice, the SAGES program has been suspended as of January 1, 2018. SAGES will therefore not be paid on RESP contributions made after December 31, 2017..

Savings boosted by government grantsiA Financial Group is the only insurance company in Canada that allows clients to take advantage of all provincial and federal grants offered, no matter where they live.

Make the switch to the fully electronic RESP experienceThe RESP resources portal contains all the information and documentation you need to:

LEARN

RESP basics

AFTER-SALES SERVICE

— Deposits— Withdrawals— Contract changes

SELL

— RESP illustration tool— RESP new-issue tool— RESP loan application— E-Signature and

transmission3

Access these tools under the My Tools and Applications tab in the Advisor Centre.

PROMOTE

Find all documents available for download (or order) to promote RESPs with your clients

Are your clients fully benefitting from these generous grants? The RESP loan may be the solution! Learn more on the next page.

Visit the RESP resources portal: ia.ca/SellAnRESP and and to watch the training videos, go to ia.ca/RESPtraining.

Two products from iA Financial Group:1. My Education+

Allows your clients to invest the amount they want, when they want and in the types of investments best suited to their needs.

My Education+ provides:

— A vast selection of funds1 and the option to invest in a high interest savings account with 100% capital protection

— Access to Prestige preferential pricing for eligible clients— 75% guarantees at maturity and at death.

Plan types offered: Individual or family

2. Diploma

Based on subscriber commitment to make monthly contributions until December 31 of the year the child turns 17.

Diploma provides:

— An education bonus of up to 15% of contributions made if the monthly commitment is respected

— Automatic investment allocation in the Diploma elementary and secondary funds

— 100% guarantees at maturity and at death

Because the contract is commitment-based, fees are charged2 in any of the following situations:

— Non-payment of contributions

— Withdrawal of contributions before the end of the commitment period

— Reduction of contribution amount

Plan type offered: Individual

Did you know…

No contribution is

required

to receive the CLB

.

Without spending a

dime, lower-income

clients

could save up to $

2,000

(plus the return on

investment) for the

ir

children's educatio

n!

36


Canadians typically contribute an average of $1,500 yearly to their child’s RESP. However, the maximum annual contribution amount eligible for government grants is $2,500 ($208.33/month). This means that many Canadians are missing out on significant grant money and the returns generated by this money.1

The iA RESP loan allows clients to:

— Maximize their contributions to obtain full government grant amounts when the client is unable to free up the budget required

— Recover unused grants from previous years

— Increase their contributions without changing their RESP budget

— Make more in returns by investing additional contributions and grants generated by the loan.

Offer your clients the best in education savings advice:

Tell them about the RESP loan as an option to consider to maximize savings for their child’s post-secondary education.

The iA RESP loan also offers:

More flexibility than a conventional loan, as it can be repaid any time

but payment is not due until RESP amounts are withdrawn

+A competitive interest rate

+No credit check

1 Employment and Social Development Canada (2017)

RESP loanTake full advantage of government grants

Consult the RESP Loan leaflet for more information!

F13-587A

38

Essentials for your clientsAn array of digital tools to back your advice

ia.ca Advice ZonePractical advice related

to simple life events

iA Mobile24/7 mobile access

to financial information

My Client SpaceA simplified, uniform

browsing experience for easy access to personal

information and documents

my-retirement.ia.caComplementary,

non-financial retirement planning assistance

iA NewsletterDay-to-day advice and tools emailed

periodically to subscribers

Electronic enrolment

Electronic application experience with the advisor

and independent access for simple transactionsClient

ExperienceUseful tools that complement

your professional, personalized financial expertise

Contribution tool This fully electronic solution

will give your clients the freedom to increase their RRSP or

TFSA contributions at any time

iA Virtual AssistantNatural communication

for a feeling of closeness and better support

my-retirement.ia.ca – Received a Digital Media excellence award from the Financial Communications Society (FCS)

iA Virtual Assistant – Winner of a 2019 OCTAS award

iA Mobile – Winner of a Digital Media – Apps and Tools award in the FCS Portfolio Awards

39



The cycle of investor emotions on the stock market

When to invest?Protect your clients' investments from their emotions! Investors who are guided by their emotions are at risk of entering and exiting the stock market at the wrong time, reducing their investment portfolio returns.

Greatest risk of loss

When markets are up, investors can be motivated by their euphoria and believe it's the best time to invest even more, whereas this may be the worst time.

Impatience

EnthusiasmExcessive confidence

Optimism

Denial

Regret

Fear

PanicDespair Hope

Relief

Optimism

Greatest opportunity for gain

When markets are down, investors can feel a sense of urgency to sell, whereas this may be the best time to invest more or hold on to their investments.

BEAR MARKET

STO

CK

MA

RK

ET

FLU

CT

UA

TIO

NS

BULL MARKET

TIME

Choose an informed investment strategyA simple contribution made automatically every month will help your clients reach their savings goals, avoid falling prey to their emotions and enjoy the following advantages:

More discipline

Better returns

Peace of mind

Personal control

Regular contributions make budget

planning easier. Savings grow

without requiring too much effort.

Your clients invest early and often, leading to more

growth for the same amount invested.

Clients are less affected by market

fluctuations and their savings steadily grow.

Clients can manage emotions that

are too often the source of bad

investment decisions.

Dollar-cost averaging (DCA) Eliminate the uncertainty that comes from market fluctuations with dollar-cost averaging (DCA) and help your clients reach their savings goals.

Deposit an amount (min. $300)

Select funds and proportions for each fund

Select term (min. 6 months, max. 12 months)

1

2

3

Tomorrow starts today!

RRSP loan rates (discount included)

Repayment term Under $5,000 $5,000+

1 year PR1 + 1.75% PR + 0.25%

2 years PR + 1.75% PR + 0.75%

3 to 5 years N/A PR + 1.75%

6 to 10 years N/A PR + 2.50%2

Why take out an RRSP loan?

— To receive a higher tax refund

— To take advantage of unused contributions

— To reach savings objectives more quickly

Advantages of the iA Financial Group RRSP loan

— A wide choice of investment funds

— Flexibility to repay the loan, in part or in full, at any time

— Option to wait for tax refund and postpone first loan payment 120 days

— Possibility of borrowing up to $50,000 to cover unused contribution room

— Competitive interest rates

1 Royal Bank of Canada’s prime rate. Rate at 2.45% as of September 3, 2020.

2 Available for loans of $12,500 or more.

For current rates, visit:

ia.ca/rrsp-loan

Through February 12, 2021,

help your clients get a reduction of

0.50% on the RRSP loan

current interest rate

4140


iA CONNECTEDYour continuous digital information platform

Now more optimal than ever!

| Receive a summary of the latest news each week in the newsletter

| Visit iaconnected.ia.ca and sign up for notifications to be informed in real time

We are here for you!

Share your questions and comments under

the articles and we will be happy to reply.

iaconnected.ia.ca

Investment LoanIncrease your clients’ growth potential!

Aimed at a specific clientele, the investment loan is an effective option that can increase the growth potential of your clients’ investment using a financial leverage strategy.

Considerable potential gains

Assumptions Loan interest: 3.50% (prime* + 0.75%)

Return: 5.00% Marginal tax rate: 40% Repayment option: Interest only

Investment WITHOUT loan

Investment WITH loan

Investments Initial investment $100,000 $100,000

Loan amount — $100,000

Total investment $100,000 $200,000

Monthly interest repayment less the benefit of the tax deduction

— $175

Subsequent monthly investments $175 —

Value of the investment after 15 years

Value of the investment $231,887 $415,786

Loan repayment — ($100,000)

Net value of the investment $231,887 $315,786

Difference — $83,899

Investment disposition after 15 years

Tax on capital gain $19,073 $28,052

Net value of the investment $212,813 $287,734

Net difference after taxes — $74,920

* Prime rate assumption of 2.75%. The rates presented here are subject to change without notice.

1 The possibility of repaying only the monthly interest on the loan offers the holder more flexibility.

2 If the $300,000 eligibility threshold is reached, the client can enjoy a management fee reduction on segregated funds held in the Classic Series 75/75 and 75/100.

Good news! There are new enhancements to the investment loan program:

— Interest rate reduced by 0.50% for new 100% loan applications

— Maximum loan increased from $250,000 to $300,000. Requests over $300,000 will be taken into consideration and reviewed on a case by case basis

— The value of the investments above any balance owing can be withdrawn

The competitive overall offer from iA Financial Group can allow your clients to:

— Grow their wealth faster

— Maximize their investments while maintaining access to liquidity1

— Benefit from the deductibility of interest charges

— Facilitate access to Prestige preferential pricing: assets invested using an investment loan count toward reaching the $300,000 eligibility threshold2

CAUTION: The use of the leveraging strategy is governed by special rules and is only for a particular clientele. Consult the eligibility requirements and documents to be provided.42

For more information, see the new Product guide (F13-622A), the Product summary (F13-618A) and the new brochure explaining all the Eligibility criteria (SRM503A-33).


Sales charge options The power to choose and combine

iA Financial Group offers clients a variety of sales charge options. Depending on your client’s situation, it is possible to combine more than one option for a single contract for optimal management. This is another way your advisory role and attention in serving your clients can be a real added value!

At sale for the advisor and the agency1

At surrender

Option 1

No load (CB3 and CB5)

Sales commission: CB 3 years option: 3.5% CB 5 years option: 5.6% (same as DSC option)

Trailing commission: CB3: 0.49% (years 2-4)

1.0% (years 5+)

CB5: 0.49% (years 2-7) 1.0% (years 8+)

Degressive charge back (CB) over 3 or 5 years at client surrender based on established percentage.

No charge back for client withdrawals of up to 10% of market value of funds as at December 31st of the prior year and 10% of deposits in funds during the current year.

For the client2 : No charge.

Option 2

Deferred sales charge (DSC)

Sales commission: 5.6% of amount invested at time of purchase.

Trailing commission: 0.49% (years 2-7)1.0% (years 8+)

No sales charge to the advisor.

For the client2:10% of market value of funds as at December 31st of the prior year and 10% of deposits in funds during the current year can be surrendered without charge.

The following charges apply to client surrenders:

1st year: 5.5% 2nd and 3rd years: 5.0% 4th and 5th years: 4.0%

Option 3

Front-end load (FEL)

Sales commission: Up to 5% of the amount invested, as negotiated with the client.

Trailing commission: 1.0% as soon as amounts are invested for more than one month.


Option 4

F-Class

Sales commission: No sales commission at time of purchase. Monthly advisory fees are paid according to the rate negotiated with your client (between 0.50% and 1.25%).

Trailing commission: No trailing commission on F-Class funds.


For the client2:If a surrender causes the value of F-Class units to be less than the accrued fees, iA will withhold units equivalent to the accrued fee amount before processing the transaction.

For a partial surrender, if the remaining balance after the transaction is sufficient to cover accrued fees for the current period, no units will be withheld.

6th year: 3.0% 7th year: 2.0% 8th and subsequent years: 0.0%

1 For more information, refer to the Commission and Bonus Schedule and Remuneration Rules available in the Advisor Centre.

2 For more information, refer to the Information Folder and Individual Variable Annuity Contract.

Explore the possibility of combining sales charge options for a single contract with your client. This can be a highly beneficial strategy!

44 5TIPS AND TRICKSTO HELP GROW YOUR BUSINESS

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Talk to millennials about socially responsible investing

Young people today are in search of ideals – they’re mobilized by the idea of changing the world and are more concerned about the environment. The current labour shortage means faster access to the labour market. This means they have more purchasing power and can set up an overall financial plan earlier.

Break the ice by introducing them to socially responsible funds. This approach could really pay off!

Use social media more efficiently

Social media has revolutionized the way we network. It’s important to take the right approach to use it effectively:

— To save time, plan ahead and schedule various posts for the upcoming weeks:– About 80% advice-based posts – About 20% promotional-type posts

— Plan for two posts per week.

Check out the Web Showcase (web-showcase.ia.ca) for lots of ready-made posts you can use!

Approach your clients’ parents

It’s important to develop relationships with your clients and know a bit about their families. Talk to your client and propose a meeting with your client and their parents to explain the value of your advice. Reassure them with respect to confidentiality.

Take advantage of the meeting to talk about accessing Prestige preferential pricing that can be applied to extended family. This grouping could provide savings on the fees associated with their segregated funds.

Help your clients through difficult financial periods

In times of uncertainty, it’s always a good idea to check in on your clients’ situations. In addition to having a considerable impact on savings, crises tend to change clients’ behaviours. It’s often at this time that some people decide to review their budgets and learn more about their investments. At these times, they need your support and listening skills more than ever.

Stand out from the competition with a professional approach

Here are a few ideas:

— Make a note of the strong points from your most recent discussion with your client in the client management software. Then, before the next meeting, re-read your notes and use those points to start the next conversation. This way you’ll start off on a positive note.

— Send your clients birthday greetings with a call or a card sent in the mail. People get fewer greetings that way these days and you’ll be surprised at the positive reaction you’ll get from this courteous gesture.

— Thank your clients: give local products based on your clients’ tastes. Whether it’s maple treats or a selection of local beers, the gift will make them think of you.

Authenticity will go a long way!

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1 Deferred Sales Charge and Charge Back over 5 years are allowed on new deposits until the annuitant reaches age 80.2 For more information, refer to the Commission and Bonus Schedule and Remuneration Rules available in the Advisor Centre.

Minimum investment in the funds

Classic Series 75/75 Series 75/100 Ecoflex Series 100/100 FORLIFE Series

Savings Stage Income Stage

Minimum initial investment $100 $100 $100 $100 $25,000

Subsequent minimum investments $100 $100 $100 $100 $100

Minimum per fund $5 $5 $5 $5 $100

Minimum PAD $25 $25 $25 $25 n/a

RRIF and LIF contracts – Minimum initial investment– FORLIFE Series – Income Stage: $25,000 – Other series: $10,000 – Lump-sum payments or transfers: $500

Guaranteed Interest Funds– Minimum initial investment: $500

Unit value

The unit value of each fund is determined every business day and is available on the iA Financial Group website and in the Advisor Centre.

Management Expense Ratio (MER)

Management expense ratios are based on the series selected and each fund’s risk level. For details on each fund’s MER, refer to document F13-1000A: Fund Codes and Management Expense Ratios, available in the Document Centre of the Advisor Centre.

Fees

Fees are calculated on December 31 of each year, after all transactions have been processed. One quarter of the fees is paid to iA Financial Group quarterly, on the anniversary date of the series (or on the first Valuation Date following that date), through a surrender of the series’ units. The series fee rate is based on the volatility of the funds.

Category of fee rate Fee rate Fee rate Fee rate

Series 75/100 and Series 75/100 Prestige Ecoflex Series 100/100 FORLIFE Series – Savings Stage

Category 1 0.10% 0.25% 0.10%

Category 2 0.20% 0.40% 0.25%

Category 3 0.30% 0.50% 0.40%

Category 4 - 0.65% 0.50%

Category 5 - 0.75% -

Sales Charge Options

Deferred Sales Charge (client fee)1 Charge Back over 3 or 5 years (advisor and agency fee)1

Front-End Load (no surrender fee)

Year units were surrendered Client fee as a percentage of the market value

1st year 5.5% There is no client fee. The charge back is applied to the advisor and the agency during the first 3 or 5 years, and the percentage decreases each month.2

A sales charge of up to 5% of the premium to be invested in the funds is negotiated by the policyholder and paid to the advisor and the agency.2

2nd and 3rd years 5.0%

4th and 5th years 4.0%

6th year 3.0%

7th year 2.0%

8th and subsequent years 0%

Surrenders

– Minimum $100 per surrender.– If the Deferred Sales Charge (DSC) option is selected, surrender fees may apply, except for surrenders made over the course of a calendar year which

do not exceed the greater of: 1) 10% of the market value of the contract, on the last business day of the previous year, plus 10% of the premiums invested in the contract during the current year;* or 2) the annual minimum RRIF withdrawal that must be made under the contract as prescribed by the Income Tax Act (Canada).

* The fee waiver on the 10% does not apply to surrenders made for transfer to another institution. Refer to the Information Folder and Contract (F13-772A) for more information on fees applicable to Guaranteed Interest Funds.

Transfers between funds

Transfers between series or between funds within the same series are allowed with no transaction or surrender fees.

Transfer options upon death

Upon the annuitant’s death, the contract can be maintained in force for the legal or common-law spouse. The spouse may elect to become the surviving annuitant even if not specifically designated as such in the contract. The Inheritance Your Way option allows the death benefit to be paid in the form of a life annuity, an annuity certain, a lump-sum payment or a combination of the three based on a formula adapted to each heir.

Documents and forms

Application F17A

Electronic Application F17EA

Your Investor Profile F51-122A

Information Folder and Contract F13-772A

Funds Facts F14-10A

Product Summary

IAG Savings and Retirement Plan

F13-

780A

Investment vehicles

Segregated funds

The IAG Savings and Retirement Plan consists of several series of segregated funds, each with its own guarantees and choice of funds:

Series offered— Classic Series 75/75

— Classic Series 75/75 Prestige

— Series 75/100

— Series 75/100 Prestige

— Ecoflex Series 100/100

— FORLIFE Series

To see the list of funds offered in each series and the fund codes, please refer to the document entitled Fund Codes and Management Expense Ratios (F13-1000A).

Fund selection— Managed solutions*

— Income funds

— Canadian and global diversified funds

— Canadian and global hybrid funds

— Canadian, American and international equity funds

— Specialty funds

— Index funds*

— Lifetime guaranteed income funds* Each portfolio is composed of many underlying funds.

Guaranteed Interest Funds

— Fixed-Rate Guaranteed Interest Funds for terms of:

– 1 month (automatically renewable)

– 1 to 5 years

– 10 years

— Progressive Rate Guaranteed Interest Funds of:

– 5 years

High Interest Savings Account

Daily Interest Fund+ (DIF+)

Information on interest rates

Applicable interest rates are available at ia.ca/fixed-income-investment-rate.

The IAG Savings and Retirement Plan includes several series of segregated funds designed to meet the needs of all types of investors.

Your clients can benefit from a comprehensive savings plan that combines all of their goals: investing, saving for special projects, retirement savings or retirement income.

Investing in segregated funds also means:— Taking advantage of market growth— Retaining profits even if there is a drop in the markets— Obtaining a quick and confidential settlement at death — Enjoying protection from creditors

The IAG Savings and Retirement Plan ensures your clients’ peace of mind not only during retirement, but also throughout their working/active life.

Plans offered

— Non-registered savings plans— TFSA: Tax-Free Savings Account— RRSP: Registered Retirement Savings Plan— LIRA: Locked-In Retirement Account— Locked-In RRSP— RRIF: Registered Retirement Income Fund— LIF: Life Income Fund

Other investment options*

— RRSP loan (up to $50,000)

— Investment loan ($300,000 maximum)

— Dollar Cost Averaging (DCA): The contract holder invests the initial premium in the Money Market Fund. Every month, an amount pre-determined by the holder is automatically transferred from the Money Market Fund to be invested in funds the client has chosen. These transfers are made for a fixed 6- to 12-month period.

* These options are not included in the Income Stage of the FORLIFE Series.

Maximum age at issue1

Maximum age at issue

Non-registered savings plans/TFSA 902, 3

RRSP, LIRA and locked-in RRSP 71

RRIF and LIF (if transferred from an RRSP/LIRA)

71

RRIF and LIF (if transferred from a RRIF/LIF)

902, 3

1 The maximum age at issue may vary according to applicable legislation. For more information, see the Informa