ivariTM Guaranteed Investment Fundsivari.ca/files/IP1300.pdf · HoW To read an ivari GIF FUnd FaCTS..... 55 Table of Contents continued. vii MonearY M KeT and FIxed InCoMe ivari

EFFECTIVE NOVEMBER 2016

ivariTM Guaranteed Investment FundsI n F o r M a T I o n F o l d e r

This Information Folder is not complete without the Fund Facts.

ivariTM

ivari Guaranteed Investment FundsInForMaTIon Folder and annUITY PolICY

Effective November 2016

any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may

increase or decrease in value.

This information folder is published for information purposes and is not a Contract. For the terms of the ivari Guaranteed Investment Funds Contract, please consult the Annuity Policy. This information folder should be read together with the ivari Guaranteed Investment Funds Fund Facts. ivari is the sole issuer of the ivari Guaranteed Investment Funds Contract and the provider of the

guarantees under the Contract.

ivari hereby certifies that this information folder provides brief and plain disclosure of all material facts relating to the ivari Guaranteed Investment Funds annuity contract.

Certified on behalf of ivari by:

douglas W. Brooks John o’HoskiPresident and Chief Executive Officer Corporate Secretary

THe PUrPoSe oF THIS InForMaTIon Folder . . . . . . . . . . . . . . . . . 1

KeY FaCTS aBoUT ivari GUaranTeed InVeSTMenT FUndS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

What am I getting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

What Guarantees are available?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Contract Maturity Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

What Investments are available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

How much will it cost? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

What can I do after I purchase this Contract? . . . . . . . . . . . . . . . . . . . . 1

What Information will I receive about my Contract? . . . . . . . . . . . . . . . . 2

Can I change my mind?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Where can I get more Information? . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

SUMMarY oF MaIn ConTraCT FeaTUreS . . . . . . . . . . . . . . . . . . . . 3

General Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Guarantees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Fee and Investment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Other Important Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1. CoMMUnICaTIonS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.1 General Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.2 Giving us your instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.3 Correspondence you will receive from us . . . . . . . . . . . . . . . . 7

2. THe ConTraCT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7


2.2 Your Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.3 Effective Date of Your Contract . . . . . . . . . . . . . . . . . . . . . . . 8

2.4 Rescission Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.5 Effective Minimum Guaranteed Amount of Your Contract . . . . . 8

2.6 Contract Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.7 Successor Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.8 Joint Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.9 Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.10 Successor Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.11 Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3. TYPeS oF ConTraCTS aVaIlaBle . . . . . . . . . . . . . . . . . . . . . . . . 9


3.2 Registered Contracts and TFSA Contracts . . . . . . . . . . . . . . . 9

3.2.1 Registered Retirement Savings Plan (RRSP) . . . . . . . . 10

3.2.2 Registered Retirement Income Fund (RRIF). . . . . . . . . 10

3.2.3 Spousal RRSPs/RRIFs. . . . . . . . . . . . . . . . . . . . . . . . 10

3.2.4 Locked-in Savings Plans (LIRA, LRSP, RLSP) . . . . . . . 10

3.2.5 Locked-in Income Plans (LIF, RLIF, PRIF) . . . . . . . . . . 11

3.2.6 Tax-Free Savings Account Plans (TFSA) . . . . . . . . . . . 11

4. dePoSITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


4.2 Making Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4.3 Scheduled Pre-Authorized Chequing . . . . . . . . . . . . . . . . . . . 12

5. FUnd SWITCHeS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12


5.2 Unscheduled Fund Switches And Fund Switch Fees . . . . . . . . 12

5.3 Early Switch Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

5.4 Scheduled Fund Switches (Dollar Cost Averaging). . . . . . . . . . 13

6. WITHdraWalS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13


6.2 Withdrawal Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

6.3 Processing a Withdrawal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

6.4 Early Withdrawal Fees and Recovery of Expenses . . . . . . . . . . 13

6.5 Information Specific to RRIF/LIF/ RLIF/PRIF Contracts. . . . . . . 14

6.5.1 RRIF Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6.5.2 LIF/RLIF Maximum Amount . . . . . . . . . . . . . . . . . . . . 14

6.5.3 Contracts Held As Self-Directed RRIFs (Including LIF/ RLIF/PRIF) . . . . . . . . . . . . . . . . . . . . . 14

7. GUaranTeeS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14


7.2 Contract Maturity Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

7.2.1 Contract Maturity Guaranteed Amount . . . . . . . . . . . . 15

7.2.2 Contract Maturity Date . . . . . . . . . . . . . . . . . . . . . . . 16

7.2.3 Contract Maturity Benefit. . . . . . . . . . . . . . . . . . . . . . 16

7.2.4 Default Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

7.2.5 Default Annuity for Contracts Issued in Quebec Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table of Contents

EFFECTIVE NOVEMBER 2016

7.3 Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

7.3.1 Transactions and Events that Increase or Decrease the Death Guaranteed amount . . . . . . . . . . 17

7.3.2 Resets of the Death Guaranteed Amount . . . . . . . . . . 17

7.3.3 Death Benefit Date . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.3.4 Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7.3.5 Process for Determining the Death Benefit . . . . . . . . . 18

8. THe InVeSTMenT oPTIonS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18


8.1.1 What is a Segregated Fund? . . . . . . . . . . . . . . . . . . . 19

8.1.2 ivari Guaranteed Investment Funds. . . . . . . . . . . . . . . 19

8.1.3 ivari Guaranteed Investment Portfolios . . . . . . . . . . . . 19

8.1.4 Index Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8.1.5 Derivatives and their Permissible Use . . . . . . . . . . . . 20

8.1.6 The Risks of Investing in Segregated Funds . . . . . . . 20

8.2 Investment Objective, Policy and Restrictions . . . . . . . . . . . . 25

8.3 Investment Management of the Funds . . . . . . . . . . . . . . . . . 26

9. HoW We CalCUlaTe THe ValUe oF YoUr InVeSTMenT. . . . . . 26

9.1 Net Asset Value of a Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 26

9.2 Unit Value of a Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

9.3 Valuation Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

9.4 Market Value of the Contract . . . . . . . . . . . . . . . . . . . . . . . . 26

10. SaleS CHarGe oPTIonS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

10.1 General Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

10.2 Initial Sales Charge Option (ISC). . . . . . . . . . . . . . . . . . . . . . 27

10.3 Deferred Sales Charge Option (DSC) . . . . . . . . . . . . . . . . . . 27

10.3.1 Deferred Sales Charge (DSC) Upon Withdrawal. . . . . 27

10.4 Free Withdrawal Privilege For DSC Units . . . . . . . . . . . . . . . 27

11. FeeS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28


11.2 Management Fee, Insurance Fee And Operating Expenses . . 28

11.3 Management Expense Ratio . . . . . . . . . . . . . . . . . . . . . . . . 28 Please see the Fund Facts for more information about MERs.

11.4 Switch Fees, Early Withdrawal Fees, Early Switch Fees and Recovery Of Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 28

11.4.1 Switch Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

11.4.2 Early Withdrawal Fee. . . . . . . . . . . . . . . . . . . . . . . . . 29

11.4.3 Early Switch Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

11.4.4 Recovery of Expenses . . . . . . . . . . . . . . . . . . . . . . . . 29

11.4.5 Additional Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

12. TerMInaTIon oF THe ConTraCT . . . . . . . . . . . . . . . . . . . . . . . . 29

13. CoMPenSaTIon PaId To adVISorS . . . . . . . . . . . . . . . . . . . . . . 29

14. oTHer IMPorTanT InForMaTIon . . . . . . . . . . . . . . . . . . . . . . . 29

14.1 Claims of Creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

14.2 Fundamental Changes And Other Changes. . . . . . . . . . . . . . 30

14.3 Limitation of Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

15. Tax IMPlICaTIonS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30


15.2 Taxation of Non-Registered Contracts . . . . . . . . . . . . . . . . . 30

15.2.1 Taxation of Contract Maturity Benefit and Death Benefit Top-Up . . . . . . . . . . . . . . . . . . . . . . . 31

15.3 Taxation of Registered Contracts . . . . . . . . . . . . . . . . . . . . . 31

15.3.1 RRSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

15.3.2 LIRA/LRSP/RLSP . . . . . . . . . . . . . . . . . . . . . . . . . . 31

15.3.3 RRIF/LIF/RLIF/PRIF . . . . . . . . . . . . . . . . . . . . . . . . . 31

15.3.4 TFSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

15.3.5 Taxation of Contract Maturity Benefit and Death Benefit Top-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

16. CUSTodIan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

17. aUdITor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

18. MaTerIal ConTraCTS and MaTerIal FaCTS . . . . . . . . . . . . . 31

19. InTereST oF ManaGeMenT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

20. GloSSarY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

annUITY PolICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

rSP endorSeMenT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

rIF endorSeMenT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

FUnd FaCTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

HoW To read an ivari GIF FUnd FaCTS . . . . . . . . . . . . . . . . . . . . . . 55

Table of Contents continued

vii

MoneY MarKeT and FIxed InCoMe

ivari Canadian Money Market GIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

ivari Canadian Bond GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

ivari TD Income Advantage GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

ivari Canadian Short-Term Bond GIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

CanadIan BalanCed

ivari Canadian Balanced GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

ivari Canadian Fixed Pay GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

ivari Fidelity Canadian Balanced GIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

ivari Fidelity Canadian Asset Allocation GIF. . . . . . . . . . . . . . . . . . . . . . . . 73

ivari TD Dividend Balanced GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

ivari TD Dividend Income GIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

CanadIan eqUITY

ivari Canadian Equity GIF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

ivari Canadian Large Cap Index GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

U.S. eqUITY

ivari U.S. Equity Index GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

GloBal eqUITY

ivari Global Growth GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

aSSeT alloCaTIon PorTFolIoS

ivari CI Conservative GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

ivari CI Canadian Balanced GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

ivari CI Balanced GIP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

ivari CI Growth GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

ivari CI Maximum Growth GIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

ivari Quotential Balanced Income GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

ivari Quotential Balanced Growth GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

ivari Quotential Growth GIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

aPPendIx a – InVeSTMenT oBJeCTIVeS and InVeSTMenT PolICIeS oF THe FUndS. . . . . . . . . . . . . . . . . . . . . . . 104

aPPendIx B – UnderlYInG FUnd and FUnd CoMPanY InForMaTIon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

aPPendIx C – PrInCIPal rISKS oF THe FUndS . . . . . . . . . . . . . . . 116

aPPendIx d – ivari GUaranTeed InVeSTMenT FUnd FeeS . . . . . 120

Table of Contents continued

1

THe PUrPoSe oF THIS InForMaTIon Folder

This information folder is not a policy or a contract – it explains the features of your Contract. This folder does not confer any rights on you or any obligations on us.

The capitalized terms in this information folder are defined in the Annuity Policy.

KeY FaCTS aBoUT ivari GUaranTeed InVeSTMenT FUndS

This summary briefly describes the basic things you should know before you apply for this individual variable insurance contract. This summary is not your contract. A full description of all the features and how they work is contained in this information folder and your contract. Review these documents and discuss any questions you have with your Advisor.

What am I getting?

You are applying for an insurance contract between you and ivari. It gives you a choice of investments and guarantees.

You can:

• Choose investment options

• Name a person to receive the death benefit

• Name a person to own the contract after your death

• Name yourself or another person to be the annuitant

• Choose a registered or non-registered contract

• Receive regular payments now or later, depending on your age

The choices you make may affect your taxes and guarantees. Ask your Advisor to help you make these choices.

The value of your contract can go up or down. The guarantees provide some protection for your investment. Please see section 7, Guarantees for details.

What Guarantees are available?

Your contract has maturity and death benefit guarantees. The benefits are based on the age and life of the annuitant. The guarantees provide some protection for your investments. You can also get added protection from an annual death benefit reset.

You pay fees for this protection. The fees are explained below under How much will it cost?

any withdrawals you make will reduce the guarantees. Please see section 7 Guarantees.

Contract Maturity Benefit

This guarantee protects the value of your investment on December 31st of the year the annuitant turns 100, unless the annuitant dies first. On this date, you will receive the greater of:

• The market value of the Funds, or

• 75% of the money you put into the Funds, less proportional withdrawal(s).

Death Benefit

This guarantee protects the value of your investment if you die during the term of the contract (if you are the annuitant). The benefit is paid to someone you name.

The death benefit applies if you die before the maturity date. It pays the greater of:

• The market value of the Funds, and

• 100% of the money you put in the Funds, less proportional withdrawal(s).

• The death guaranteed amount is automatically reset to the market value, if higher, on the policy anniversary date until the year the annuitant turns 75.

For full details about how these guarantees work, see sections 7.2 Contract Maturity Benefit, 7.3 Death Benefit and section 7.3.2, Resets of the Death Guaranteed Amount in this information folder.

What Investments are available?

You can invest in segregated funds. We explain the segregated fund options in the Fund Facts.

ivari guarantees the maturity and death benefits. ivari does not guarantee the performance of the segregated funds. Carefully consider your tolerance for risk when you select an investment option.

Your investment may go up or down.

How much will it cost?

The Funds and the sales charge options you select affect your costs.

You can choose up-front (initial) or deferred sales charges. For full details see section 10, Sales Charge Options.

Fees and expenses are deducted from the segregated funds. The fees pay for the insurance benefits including resets, the management of the Funds and taxes. Management expense ratios (MERs) express the percentage of the segregated fund used to pay for fees and expenses for the segregated fund. The MER is in the Fund Facts for each segregated fund.

If you make certain transactions or other requests, you may be charged separately for them. These include withdrawals, early withdrawals, early switches or more than four switches per year.

Please see the section 11, Fees for details.

What can I do after I purchase this Contract?

If you wish, you can do any of the following:

Transfers: You may switch from one Fund to another. See section 5, Fund Switches for details.

Withdrawals: You can withdraw money from your contract. If you decide to withdraw money, this will affect your guarantees. You may also need to pay a fee and taxes. See section 6, Withdrawals for details.

Deposit: You may make lump-sum or regular investments. See section 4, Deposits for details.

2

Pay-out annuity: On the Contract Maturity Date, the contract will end and an annuity contract will replace it unless you select another option. See section 7.2.4. Default Annuity.

Certain restrictions and other conditions may apply. Review the contract for your rights and obligations and discuss any questions with your Advisor.

What Information will I receive about my Contract?

We will tell you at least once a year the value of your investments and any transactions you made.

We print audited annual financial statements and unaudited semi-annual financial statements for the Funds. These are available on our website or you can request a copy by contacting us.

The current Fund information can be found in the Fund Facts pages on our ivari.ca website after the audited annual segregated fund financials are made available.

Can I change my mind?

Yes, you can:

• Cancel the contract

• Cancel any deposit you make, or

• Cancel Fund allocation decisions.

To do any of these, you must tell us in writing within two business days of the earlier of:

• The date you received confirmation, and

• Five business days after the confirmation is mailed to you.

• If you:

(a) cancel the contract or a deposit the amount will be returned to you.

(b) cancel a Fund allocation, the original Fund allocation will be restored.

The amount returned or restored will be the lesser of the amount invested and the value of the Fund if it has gone down.

We will refund any sales charges or other fees you paid.

If you change your mind about a specific Fund deposit or switch, the right to cancel only applies to that transaction.

For more information, see section 2.4, Rescission Rights for details.

Where can I get more Information?

You may call us at 1-800-846-5970 or send us an e-mail to [email protected]. Information about our company and the products and services we provide is on our website at ivari.ca.

For information about handling issues you are unable to resolve with your insurer, contact the OmbudService for Life and Health Insurance at 1-800-268-8099 or on the internet at www.olhi.ca

If you live in the Province of Quebec, you may also contact Autorité des marchés financiers (Centre d’information) Place de la Cité, Tour Cominar, 2640 boul. Laurier, Québec G1V 5C1. Telephone : Montréal : (514) 395-0337, Québec : (418) 525-337, Toll Free : 1 877-525-0337 or www.lautorite.qc.ca

For information about additional protection available for all life insurance contractholders, contact Assuris, a company established by the Canadian life insurance industry. See www.assuris.ca for details.

For information regarding how to contact the insurance regulator in your province visit the Canadian Council of Insurance Regulators website at www.ccir-ccrra.org.

any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value.

3

General Information

Plan Types • RRSP, LIRA, RLSP, RRIF, LIF, RLIF, PRIF, TFSA and non-registered

See section 3, Types of Contracts Available for more information

Latest age to make deposits • Non-Registered, RRIF, LIF, RLIF, PRIF, TFSA Contracts

– The day before the Annuitant turns 76

• RRSP, LIRA, RLSP Contracts (pension jurisdiction requiring an annuity at age 80)

– December 31st of the year the Annuitant turns 71**

• LIF Contracts regulated by Newfoundland and Labrador

– December 31st of the year the Annuitant turns 71**

See section 4, Deposits and section 10, Sales Charge Options for more information

** Or latest age to hold under the Income Tax Act (Canada), except that it cannot exceed the day before the Annuitant’s age 76.

Deposits • Non-payout Contracts: Minimum $500 per Contract/ $100 per Fund

• Payout Contracts (RRIF, LIF, RLIF or PRIF plans): Minimum $10,000 per Contract/$100 per Fund

• The monthly Pre-Authorized Cheque (PAC) Deposit minimum amount is $50. The minimum allocation per Fund is $25.

• Deposits of $2,000,000 or more require pre-approval

See section 4, Deposits for more information

We reserve the right to refuse any Deposit to a Fund if it is outside our minimum or maximum requirements according to the Administrative Rules in place at that time. We reSerVe THe rIGHT To CHanGe or ModIFY THeSe rUleS FroM TIMe To TIMe.

Fund Switches • 4 free unscheduled switches per calendar year, thereafter we will charge a switch fee of 2% of the amount switched

• Minimum switch amount of $100 and a minimum switch amount of $25 per Fund

• We may also charge an early switch fee of 2% of the amount switched if you make an unscheduled switch within 90 days of allocating a Deposit or a switch to the Fund.

See section 5, Fund Switches for more information

Withdrawals • Minimum withdrawal amount of $100 and a minimum of $25 per Fund

• We may charge an early withdrawal fee of 2% of the amount withdrawn if the unscheduled withdrawal is made within 90 days of the Deposit.

See sections 6, Withdrawals and 10, Sales Charges for more information.

SUMMarY oF MaIn ConTraCT FeaTUreS

The following table summarizes the main features of the ivari Guaranteed Investment Funds Contract.

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Guarantees

Contract Maturity Benefit • Calculated on the Contract Maturity Date, which is December 31st of the year the last surviving Annuitant turns 100, or the last Valuation Date of the year if December 31st is not a Valuation Date. The Contract Maturity Date is age 80 for locked-in plans registered under the laws of Newfoundland and Labrador and age 90 for locked-in plans registered under the laws of New Brunswick.

• Calculated as the greater of:

(i) the 75% Contract Maturity Guaranteed Amount, and

(ii) the Market Value of the Contract.

See sections 7.2, Contract Maturity Benefit and 9.4, Market Value of the Contract for more information

Death Benefit • Calculated on the Death Benefit Date.

• Calculated as the greater of:

(i) the Death Guaranteed Amount, and

(ii) the Market Value of the Contract.

See sections 7.3, Death Benefit and 9.4, Market Value of the Contract for more information

Resets • Resets may increase the value of the Death Guaranteed Amount of the Contract.

• Resets are performed automatically every year, on the Policy Anniversary Date, if the Market Value of the Contract is greater than the value of the Death Guaranteed Amount.

• A final reset of the Death Guarantee Amount will be made on the Policy Anniversary Date of the year the Annuitant turns age 75.

See section 7.3.2, Resets of the Death Guaranteed Amount for more information.

Fee and Investment options

Investment Options • The Funds available under this Contract are diversified by asset class, geographic region and investment style.

• Individual funds as well as portfolio or asset allocation funds are available.

• Fund Units are valued daily on each Valuation Date.

Please consult the Fund Facts for the investment objective, policy and risks associated with each Fund.

Sales Charges • There are two sales charge options available for the Funds in the Contract:

(i) Initial Sales Charge (ISC); and

(ii) Deferred Sales Charge (DSC).

• Under the ISC option, a sales charge that you negotiate with your Advisor is deducted from the Premium before Units are allocated to your Contract. The initial sales charge is paid as compensation to your Advisor. The Fund Units allocated to your Contract will be ISC Units.

• Under the DSC option, we pay your Advisor compensation at the time of the Deposit, and the full Premium is used to allocate Units to the Contract. You pay us a declining fee if you make a withdrawal within the first 6 years of the Deposit. Thereafter, there is no DSC fee on those Units. The Fund Units allocated to your Contract will be DSC Units.

• You are entitled to a 10% free withdrawal each year of the DSC Units allocated to the Funds within the Contract. This privilege is prorated in the first year of Deposit. Any unused portion of the privilege cannot be carried forward to future years.

• You may hold both DSC and ISC Units in the same Contract.

See section 10, Sales Charge Options for more information

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Fee and Investment options

Fees • The fees charged to the Funds in this Contract consist of:

– management fees

– insurance fees, and

– operating expenses

• Each Fund pays a management fee to us for providing the management of the Fund, commissions and service fees payable to Advisors.

• Each Fund pays an insurance fee for the costs of providing the Maturity Benefit, Death Benefit and Reset of the Death Guaranteed Amount.

• Each Fund also pays its own operating expenses.

• Each Fund also pays the applicable taxes.

• Management fees, insurance fees, operating expenses and applicable taxes are deducted daily before the calculation of the Unit Value of the Fund.

• Management fees, insurance fees, operating expenses and applicable taxes vary for each Fund and are incorporated in the Management Expense Ratio (MER) of a Fund.

• Where the Fund invests in an Underlying Fund(s), the management fee and the MER of the Fund includes the corresponding management fee and the MER of the Underlying Fund(s), and there is no duplication of fees for the same service.

Transactional Fees

• In addition to these fees, there are certain transactional fees we can charge that are intended to discourage behaviour that can negatively impact the returns of the Funds. Specifically, we will charge a:

– switch fee of 2% of the amount switched if you make more than 4 unscheduled switches in one year.

• We may also charge:

– an early withdrawal fee of 2% of the value of Units withdrawn if you make a withdrawal within 90 days of allocating those Units to the Fund

– an early switch fee of 2% of the value of Units switched if you make a switch within 90 days of allocating a Deposit or a switch to the Fund

See section 11, Fees for more information

Please consult appendix d for the management fee, insurance fee, maximum insurance fee and Mer of each Fund.

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other Important Information

Fundamental Changes • You have certain rights if we make changes that are considered fundamental. A fundamental change is:

– an increase in the management fee of a Fund;

– a change in the fundamental investment objectives of a Fund;

– a decrease in the frequency with which Units of a Fund are valued; or

– an increase in the maximum insurance fee of a Fund.

See section 14.2, Fundamental Changes and Other Changes for more information

Tax • You will be allocated income and capital gains and losses based on the number of Units of each Fund allocated to you. You may be taxed on the income allocated and gains realized.

• Switches, withdrawals, discontinuance of a Fund and reallocation to another Fund, substitution of an Underlying Fund may result in a taxable event.

• Where required, we will issue a tax slip following the end of the year showing the income, capital gain and capital losses for Units of Funds allocated to you.

See section 15, Tax Implications for more information

Financial Information about the Funds Please review the Fund Facts in this Information Folder before entering into this Contract.

• Audited annual financial statements and unaudited semi-annual financial statements are available upon request by writing to us at our Head Office at 500 – 5000 Yonge Street, Toronto, Ontario, M2N 7J8. Attention: Investment Products, Operations. You may also access these documents at ivari.ca.

any amount that is allocated to an ivari Guaranteed Investment Funds Contract is invested at the risk of the contract holder(s) and may increase or decrease in value.

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1. CoMMUnICaTIonS

1.1 General Information

In this Information Folder, “you”, “your” and “Owner” mean the person who is the Owner of the Contract or holder of rights under the Contract. “We”, “our”, “us”, and the “Company” mean ivari. ivari is a life insurance company established under federal legislation.

With a national network of thousands of independent Advisors, ivari provides a full range of insurance products designed to help Canadians and their families make the right choice for their protection needs. The people, products and service that make up ivari have stood the test of time and have been around for over 80 years in the Canadian marketplace. Now owned by Wilton Re, we are starting a fresh, new conversation about insurance.

Wilton Re is a life (re)insurance company specializing in the acquisition and management of life and annuity businesses as well as with assisting companies with product development, underwriting and new business strategies designed to serve the middle market.

Please visit ivari.ca to learn more about ivari.

1.2 Giving us your instructions

When we ask you to “notify us in writing,” please send your correspondence to our head office at: ivari, 500 – 5000 Yonge Street, Toronto, Ontario, M2N 7J8.

1.3 Correspondence you will receive from us

When we say “we will notify you,” we mean that we will send a written notice to your address as shown in our files.

From time to time we will notify you of important information or request your instructions. It is important for you to notify us if your address changes to ensure you receive information about your policy. We are not responsible for any missed opportunities or losses if your address changes and it is not communicated to us.

Where the Contract is held in nominee name, our correspondence to you may be directed to a third party based on the authorization you have given to the third party.

We will send you or your nominee:

• statements for the Contract at least annually,

• upon request, annual audited financial statements for the Funds available within the Contract,

• upon request, semi-annual unaudited financial statements for the Funds available within the Contract,

• notices under the terms of the Contract, where applicable and

• upon request, copies of the Simplified Prospectus, Annual Information Form and audited Financial Statements of the Underlying Funds.

The annual audited and semi-annual unaudited financial statements for the Funds are also available at any time on our website (ivari.ca).

Current performance of the Funds and their corresponding Fund Facts pages are available on our website (ivari.ca).

2. THe ConTraCT


ivari Guaranteed Investment Funds is an insurance contract, legally known as an individual variable insurance contract. The Contract is an annuity because at the Contract Maturity Date, an annuity will be issued based on your life, unless you instruct us otherwise.

If you choose to register the Contract as a retirement plan, an endorsement will be issued. The endorsement overrides the provisions of your Contract that are inconsistent with the endorsement.

When you allocate premiums, also referred to as a “Deposit”, to a Fund, you do not become a unitholder of the segregated funds or Underlying Funds available under the Contract. Instead, you acquire certain benefits under the Contract. To determine the extent of your benefits and to record your interest under your Contract, we use a notional measure called “Units”. You do not legally own Units because at law, the assets of the segregated funds are owned by the Company. These assets are required to be segregated from the Company’s other assets. Generally speaking, the effect of keeping the segregated funds separate from other assets is to give contract holders prior claim over other claimants against the assets of the segregated fund if the Company is insolvent. Please be mindful of this when you read the Contract documents.

We may change our Administrative Rules at any time without notice at our discretion to reflect corporate policy, economic and legislative changes. We have the right in accordance with our Administrative Rules to refuse to open new Contracts.

We have the right to limit the number of Contracts held by you or the deposits made to any of them.

2.2 Your Contract

Your “Contract” with us consists of:

• the attached ivari GIF annuity policy

• any endorsements or riders incorporated by reference into the annuity policy at the time of its issue

• the application

• amendments that we agree to in writing after your Contract is issued

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The following information presented in the Fund Facts documents also forms part of the Contract:

• Name of the Contract and the segregated funds

• Management Expense Ratio, fees and expenses

• Risk disclosure

• Right to cancel

The Fund Facts documents are included in Information Folder are also available on our website at ivari.ca. The information provided in the Fund Facts is accurate and complies with the requirements of the Individual Variable Insurance Contract Guideline as of the date the information was prepared. Any error in the Fund Facts information described above will be remedied by correction of the error, where reasonable, but will not entitle you to benefit from the error.

You may also cancel the Contract, any deposit(s) or Fund allocation (switch) in accordance with the rules described in section 2.4 (Rescission Rights).

2.3 effective date of Your Contract

Your Contract is effective on the later of the Valuation Date of the first Deposit and the acceptance of the Contract in accordance with our Administrative Rules. Delivery of the Annuity Policy does not constitute our acceptance of a Contract. We will send you a transaction confirmation for the Deposit. It will state the Effective Date of the Contract. The Effective Date is also the date on which the Policy Anniversary Date is set. In the case of leap years, if the Effective Date is on February 29th, the Policy Anniversary will be set at February 28th.

2.4 rescission rights

You may cancel the Contract, any Deposit(s) or any Fund allocation (switch) provided you send us written notice requesting the cancellation within two Business Days of the earlier of (i) the date you receive the transaction confirmation and (ii) five Business Days after it is mailed by us.

On the Valuation Date we receive your request for cancellation of:

(a) the Contract or a Deposit, the value of cancelled Units will be refunded to you.

(b) an allocation between Funds (switch), the value of the cancelled Units will be returned to the immediately preceding Fund allocation.

The value of the cancelled Units will be the lesser of:

(i) the market value of the Units on the Valuation Date of the Deposit or switch; and

(ii) the market value of the Units on the Valuation Date your cancellation request was received by us.

Any sales charges or other fees charged to you for the Deposit or switch will be reversed.

A cancellation of a Fund switch will include a reversal of any fees resulting from the switch but will not be refunded in cash.

A request for cancellation must clearly identify the specific transaction you wish to cancel.

2.5 effective Minimum Guaranteed amount of your Contract

Subject to any applicable legislative requirements, if all the Guaranteed Amounts, including the Death Guaranteed Amount and the Contract Maturity Guaranteed Amount are less than $500, we reserve the right to terminate the Contract upon 30 days’ notice and forward to you the Market Value of the Contract, minus of any applicable charges, fees and taxes.

2.6 Contract owner

You are the Owner of the Contract. As Owner, you are entitled to all rights under the Contract. Your rights may be limited if you have named an irrevocable Beneficiary, if you have assigned the Contract or if your Contract is a registered plan.

The Owner must be a Canadian resident at the time the Contract is issued.

The Owner may be an individual, a corporation or more than one individual as permitted by our current Administrative Rules and applicable laws.

You can change the Owner of the Contract by notifying us in writing. A change of ownership must be in accordance with governing legislation and the Administrative Rules that we have in place at that time. There may be tax implications to such change and you should discuss the matter with your Advisor prior to making a change. Subject to the terms in section 2.8, a change in ownership will not change the Contract features, including the Contract Maturity Benefit and the Death Benefit.

You cannot borrow money from the Contract.

You may be able to use the Contract as security for a loan by assigning it to the lender. The rights of the lender may take precedence over the rights of any other person having a claim over the Contract. An assignment of this Contract may restrict or delay certain transactions otherwise permitted.

2.7 Successor owner

You may designate a Successor Owner, who will assume Ownership of the Contract upon your death. This designation may be useful when you have designated an Annuitant other than yourself or a Successor Annuitant. In naming a Successor Owner, upon your death ownership of the Contract will be transferred directly to the Successor Owner rather than to the executor of your estate. In Quebec, the Successor Owner is called the subrogated policyholder.

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If you are also the Annuitant and have not named a Successor Annuitant, the Contract will end on your death and the Death Benefit will be paid to your Beneficiary or your estate. In that case, the ownership of the Contract will not be transferred to the Successor Owner.

2.8 Joint owners

The Contract can be jointly owned or held by two Owners. The type of joint ownership available for this Contract is “Joint Tenancy with Right of Survivorship”. Under this type of ownership, each joint Owner holds an undivided interest in the entire Contract. Both joint Owners have to agree to changes and transactions made within the Contract. On the death of one Owner, who is not the Annuitant, the surviving Owner will become the sole Owner. This form of ownership is not available in Quebec.

2.9 annuitant

The Annuitant is the person on whose age and life the Contract Maturity Benefit is measured and on whose death the Death Benefit is payable. The Annuitant is designated by you on your initial application. If you choose to set up your Contract as a registered plan, you must be the Annuitant. The Annuitant must be a Canadian resident at the time you open your Contract. We have the right in accordance with our Administrative Rules to:

(i) require medical evidence of the health of the Annuitant or Successor Annuitant and refuse to accept Deposits if the medical evidence is unsatisfactory or incomplete.

(ii) require proof of age or sex of any person upon whose age or sex any payment depends. If this information has been misstated, we reserve the right to recalculate the withdrawal benefits to those that would have been provided for the Annuitant’s correct age or sex.

Subject to the terms of the Contract and our consent, you may, for non-registered plans, request a change of Annuitant under your Contract by notifying us in writing. Before consenting to such a change, we may require, among other things, acceptable medical evidence of the new Annuitant’s health. When the annuitant is changed, the Contract Maturity date and the latest age to deposit will be based on the new annuitant’s age. Please be mindful and discuss the effect of the change with your advisor.

We have the right to limit the number of Contracts with the same Annuitant.

2.10 Successor annuitant

For non-registered plans, you may designate any person as Successor Annuitant who will become the Annuitant upon the primary Annuitant’s death.

You may only designate your spouse or common-law partner (as the terms are defined under the Income Tax Act (Canada)) as Successor Annuitant if the Contract is issued as a TFSA or Retirement Income Fund (“RIF”) plan. The designation of your spouse or common-law partner as Successor Annuitant and the removal of a previously named Successor Annuitant must be made while the Annuitant is alive.

Upon the death of the primary annuitant, if you have named a Successor annuitant, the Contract will continue and no death Benefit will be payable.

2.11 Beneficiary

You may also designate one or more beneficiaries under your Contract. The Beneficiary is the person who will receive the Death Benefit on the death of the last surviving Annuitant.

You can designate the Beneficiary as revocable or irrevocable.

If you designate a revocable Beneficiary, you may change the Beneficiary at any time while the Annuitant is living, by notifying us in writing. The change will be effective when you sign the declaration changing the Beneficiary, except that we will only be responsible for acting upon information that has been filed with us at our Head Office before the death benefit has been paid.

Please be mindful if you designate the Beneficiary as irrevocable, you may not make certain changes to the Contract without the consent of the irrevocable Beneficiary.

In the Province of Quebec, the designation of your married or civil union spouse as Beneficiary is considered irrevocable unless the designation is specifically made revocable.

If you do not designate a Beneficiary, you or your estate will receive the Death Benefit under your Contract on the death of the Annuitant.

Special rules apply to Contracts held in nominee name, please review with your Advisor.

3. TYPeS oF ConTraCTS aVaIlaBle


The Contract can be set up as non-registered or registered.

3.2 registered Contracts and TFSa Contracts

The limitations described in this section are exceptions to the general information provided in the information folder and apply to registered contracts only. Registered plans are tax efficient investment vehicles. There are also legislative restrictions on contracts issued as registered plans.

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The registered Plans available include:

• Registered Retirement Savings Plan (RRSP),

• Spousal RRSP,

• Locked-In Retirement Account (LIRA),

• Locked-In Retirement Savings Plan (LRSP),

• Restricted Locked-In Savings Plan (RLSP),

• Registered Retirement Income Fund (RRIF),

• Spousal RRIF,

• Life Income Fund (LIF),

• Prescribed Retirement Income Fund (PRIF),

• Restricted Life Income Fund (RLIF), and

• Tax-Free Savings Account Plan (TFSA).

Not all variations of registered Contracts may be available to you depending on the source of the initial Deposit and the province of purchase.

We have the right to limit the number of Contracts held by you or the deposits made to any of them. Please see section 4, deposits, for additional information.

For registered and TFSA Contracts:

• You are both the Owner and the Annuitant.

• You cannot borrow money from the Contract.

• You cannot use the Contract as security for a loan or assign it to a third party.

• The Contract will be registered under the provisions of the Income Tax Act (Canada).

• You do not pay taxes on earnings as long as they remain inside the plan. With the exception of a TFSA, any money withdrawn from a registered Contract is taxable in your hands. We will deduct any required withholding tax from the amount you withdraw.

3.2.1 registered retirement Savings Plan (rrSP)

Once you reach the end of the year that you attain age 71 (or the latest age to own under the Income Tax Act (Canada)), you must convert the RRSP to:

• a RRIF,

• an immediate annuity, or

• cash (in one lump sum).

Unless you indicate otherwise, if the Contract is in force on December 31st of the year you turn 71 (or the latest age to own under the Income Tax Act (Canada)), we will automatically change the registration status from an RRSP to a RRIF.

3.2.2 registered retirement Income Fund (rrIF)

A RRIF must pay you a minimum amount each calendar year, starting by the end of the year after the year in which you purchase the RRIF. A RRIF is funded by a transfer from an RRSP. You are the Owner and the Annuitant of a RRIF.

The RRIF Minimum Amount is calculated by multiplying the closing Market Value of the Contract on December 31st of the previous year by the percentage determined under the Income Tax Act (Canada).

When legislation permits, you can elect to have the RRIF minimum percentage based on the age of your spouse or common-law partner (as the terms are defined under the Income Tax Act (Canada)). You must make this election at the time you purchase the Contract and once this election is made, it cannot be changed while the Contract is in force.

3.2.3 Spousal rrSPS/rrIFS

An RRSP that is funded by your spouse and owned by you, is a Spousal RRSP. You are the Owner and the Annuitant of a Spousal RRSP and your spouse is the contributor of Deposits.

A RRIF that is funded by a transfer from a Spousal RRSP and owned by you is a Spousal RRIF. You are the Owner and the Annuitant of a Spousal RRIF.

3.2.4 locked-In Savings Plans (lIra, lrSP, rlSP)

A LIRA (called LRSP in certain jurisdictions) is registered as an RRSP for tax purposes with contractual terms that are specially designed to hold pension funds for a former pension plan member, former spouse or common-law partner, or survivor. You cannot access assets in a LIRA until you reach a certain age, which depends on the provincial legislation that governs your plan.

A RLSP is only available for locked-in funds governed by the federal pension legislation. It is designed to accept transfers from a Restricted Life Income Fund (RLIF) for individuals who no longer wish to receive income from the RLIF.

Once you reach the end of the year that you attain age 71 (or the latest age to own under the Income Tax Act (Canada), you cannot take the proceeds in cash, you must convert the LIRA, RLSP or LRSP to:

• a LIF, RLIF or PRIF (except in Manitoba) where applicable; or

• a life annuity.

Unless you indicate otherwise, if the Contract is in force on December 31st of the year you turn 71 (or the latest age to own under the Income Tax Act (Canada)), we will automatically change the registration status from a LIRA/ LRSP to the applicable LIF as allowed under pension legislation. In the case of a:

• Saskatchewan regulated LIRA, we will automatically change the registration status from a LIRA to a PRIF.

• Federally regulated RLSP, we will automatically change the registration status from a RLSP to a RLIF.

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3.2.5 locked-In Income Plans (lIF, rlIF, PrIF)

For a LIF, RLIF or PRIF, the Contract is registered as a RRIF for tax purposes

A LIF, RLIF and PRIF are vehicles used to hold and pay out pension funds.

A LIF, RLIF or PRIF Contract may only be issued at the ages permitted by the applicable pension legislation governing the former pension plan.

When transferred, spousal rights prescribed under pension legislation are preserved unless otherwise waived. Some jurisdictions may require that you obtain spousal consent or a spousal waiver form before we can facilitate such a transfer.

You must withdraw a minimum amount each calendar year, starting by the end of the calendar year after the year in which you open a LIF, RLIF or PRIF. For a LIF and RLIF, there is a maximum amount that may be withdrawn each calendar year.

Depending upon the legislation governing your former pension plan, a LIF may require you to purchase a life annuity with the balance of the Funds by a certain date before the Contract Maturity Date. Payment of the annuity fulfils our obligations under the Contract in full. Please consult your lIF endorsement and your advisor for more information.

3.2.6 Tax-Free Savings account Plans (TFSa)

For a TFSA, the Contract is registered as a TFSA for tax purposes.

The Owner must be a minimum of 18 years of age.

Your TFSA Deposits are not tax deductible. Any unused TFSA contribution room will accumulate and can be carried forward to subsequent years.

Withdrawals are not subject to income tax and will restore your contribution room equal to the withdrawal amount(s) in the following calendar year. If you re-contribute amounts in the same year that you withdraw from a TFSA, you may be subject to substantial penalties imposed by the Canada Revenue Agency (CRA).

No tax is payable on earnings accumulated in the Contract.

4. dePoSITS


The latest age for Deposits into a Contract varies with the type of Contract you select.

Plan type latest age to deposit

Non-registered, RRIF, LIF, RLIF, PRIF and TFSA

The day before the Annuitant turns 76

RRSP, RLSP and LIRA, Newfoundland and Labrador LIF

December 31st of the year the Annuitant turns 71*

* Or the latest age to hold under the Income Tax Act (Canada), except that it cannot exceed the day before the Annuitant’s age 76.

The minimum initial Deposit required to issue your Contract is $500 or $10,000 for a RRIF, LIF, RLIF or PRIF plan. The minimum that can be allocated to a specific Fund is $100. Each additional Deposit to the same Fund must be at least $100. Subject to our current Administrative Rules, the monthly minimum Pre-Authorized Chequing (PAC) Deposit amount is $50. The minimum allocation per Fund is $25.

You need our prior written approval for Deposits above $2,000,000.00.

We have the right in accordance with our Administrative Rules to:

• refuse to accept Deposits

• limit the amount of Deposits allocated to a Fund

• refund Deposits previously accepted within 90 days

4.2 Making deposits

Until the latest age to make a Deposit and before the Contract Maturity Date and the death of the Annuitant, you may make Deposits, subject to the Administrative Rules in place at that time. These restrictions are in addition to any age restrictions on Deposits imposed by law.

You may elect to make a Deposit under the Initial Sales Charge (ISC) or the Deferred Sales Charge (DSC) option.

If you choose the ISC option, a sales charge between 0 and 5%, (to be negotiated between you and your Advisor) will be deducted from the Premium for investment before we allocate Units to the Contract. The remaining amount will be divided by the Unit Value of the Fund, effective on the Valuation Date of the Deposit, to determine the number of the applicable Units of the Fund to be allocated to the Contract.

If you choose the DSC option, the entire Premium will be divided by the Unit Value effective on the Valuation Date of the Deposit to determine the number of the applicable Units of the Fund to be allocated to the Contract. Under this option, a sales charge will be deducted on a declining scale from any withdrawals made within the first 6 years of the Effective Date of the Contract. Please see section 10.3.1, Deferred Sales Charge (DSC) Upon Withdrawal for more information.

All Deposits must be made in Canadian dollars.

If we do not receive your Deposit and all of the necessary documents in good order within the required period of time set out in our Administrative Rules, we will cancel the Units allocated to your Contract on the next business day.

If your payment comes back to us marked NSF (Not Sufficient Funds), we reserve the right to charge a fee to cover our expenses.

The value of Units allocated to the Contract in respect of a particular Fund is invested at the risk of the contractholder and may increase or decrease in value.

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4.3 Scheduled Pre-authorized Chequing

Pre-Authorized Chequing or PACs are scheduled Deposits made for a set amount, frequency and Funds that you have selected. You may elect PAC Deposits to be made on an annual, semi-annual, quarterly, monthly, bi-weekly and weekly basis.

PACs are available for Non-registered, TFSA and RRSP Contracts.

We will make regular PAC withdrawals directly from your bank account, as authorized by you.

We have the right to cancel the PAC at any time, upon 10 days notice to you.

If we discontinue a Fund or close a Fund to new Deposits, we have the right to direct the PAC to another Fund. Please see section 8, The Investment Options for more information on Fund discontinuance.

Subject to our Administrative Rules, we will stop processing Deposits by PAC if they are returned unprocessed. You will be required to notify us in writing to re-establish Deposits to the Contract by PAC.

Please see the application for terms and conditions applicable to PaC.

5. FUnd SWITCHeS


At any time before the Contract Maturity Date or the death of the Annuitant, you may request a switch of monies between Funds within the same sales charge option (i.e. ISC to ISC) and the same Contract on an unscheduled or scheduled basis.

Whenever you switch between Funds, you do not incur surrender charges and your guarantees are not impacted. Certain Fund switches may give rise to fees. A switch in a non-registered contract is a taxable transaction. Please see sections 5.2, Unscheduled Fund Switches and 5.3, Early Switch Fees for more information.

Moving between Funds of different sales charges (i.e. DSC to ISC) is not considered a switch and may trigger surrender fees. This transaction is processed as a withdrawal from the Contract and a subsequent Deposit back into the Contract. Guarantees will be impacted. Please see section 6.1 Withdrawals, General Information. This is a taxable transaction, and is subject to the latest age to make a Deposit rule. Please see section 4.1, Deposits, General Information.

Fund switches are not permitted between different Contracts.

Because the Funds are generally considered to be long-term investments, we discourage investors from excessive trading in Units of a Fund with the object of realizing a short-term gain. Such trading may not only harm a Fund’s performance, but may also affect the value of other owners’ interests in the Fund. We will deduct a switch fee of 2% for the 5th and subsequent switches made within a calendar year. In addition we reserve the right to

charge an early switch fee of 2% of the value of Units switched if you make a switch within 90 days of allocating those Units to the Fund. Please see section 5.2, Unscheduled Fund Switches and Fund Switch Fees and 5.3, Early Switch Fees for more information.

We reserve the right to delay switches in unusual or exceptional circumstances where it is not practical to dispose of investments made in a Fund or where it would be unfair to other Owners.

The value of the Units cancelled or acquired to effect a Fund switch is invested at the risk of the contractholder and may increase or decrease in value.

5.2 Unscheduled Fund Switches and Fund Switch Fees

You may request a Fund switch up to four times in any calendar year free of charge. We count all switches made on a single day as one switch. You may not carry forward any unused portion of this privilege from one year to the next.

We will deduct a Fund switch fee of 2% of the amount switched for the fifth and subsequent switches in the same calendar year. ivari reserves the right to change this fee at any time upon 60 days advance notice.

The switch fee will reduce the Contract Maturity Guaranteed amount and death Guaranteed amount proportionally.

When you switch between Funds, it is your oldest Units that are switched first.

If your Contract is non-registered, switches are considered a disposition under the Income Tax Act (Canada) and will be taxable. Please see section 15.2, Taxation of Non-Registered Contracts for more information.

We have the right to:

• refuse any Fund switch request,

• limit the amount switched to any particular Fund(s), and

• impose additional conditions at our discretion before any Fund switches are made.

5.3 early Switch Fees

We reserve the right to charge an early switch fee of 2% of the value of Units switched if you make a switch within 90 days of allocating those Units to the Fund. ivari reserves the right to change this fee at any time upon 60 days advance notice.

The early switch fee will reduce the Maturity Guaranteed amount and death Guaranteed amount proportionally.

If your Contract is non-registered, the early switch fee will be considered a disposition under the Income Tax Act (Canada) and will be taxable. For more information, please refer to section 15.2, Taxation of Non-Registered Contracts for more information.

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5.4 Scheduled Fund Switches (dollar Cost averaging)

You may request to have scheduled Fund switches for your Contract. Scheduled Fund switches are commonly referred to as a “Dollar Cost Averaging” (DCA) service. There are no switch fees applicable for this service and such switches are in addition to the four Fund switches per calendar year that are free of charge.

You can arrange to have scheduled Fund switches between Funds, subject to having sufficient value in the Fund from which monies are switched. You must provide us with the frequency, amount, start date and the Funds where monies will be switched.

Scheduled Fund switches are subject to a minimum of $100 with a minimum of $25 per Fund.

We reserve the right to cancel the scheduled Fund switches at any time or direct the scheduled Fund switches to a Similar Fund, according to the Administrative Rules that we have in place at the time. If we were to close or restrict new Deposits to a Fund, we will provide you with advance notice of our intentions and the Fund options available to you.

6. WITHdraWalS


At any time before the Contract Maturity Date and the death of the Annuitant, you may make withdrawals from your Contract, according to our Administrative Rules

You may decide to make withdrawals on a scheduled or unscheduled basis.

Requests for withdrawals must meet minimum amounts that we have in place at the time you make the request. The current minimum withdrawal amount is $100 with a minimum of $25 per Fund.

Any applicable deferred sales charges, fees or withholding taxes that you must pay are deducted from the withdrawal. The minimum withdrawal amounts are calculated before applicable deferred sales charges, fees and withholding taxes are deducted.

Withdrawals may result in either a capital gain or a capital loss since they create a taxable disposition. Please see section 15, Tax Implications for more information.

Withdrawals will reduce the Market Value of the Contract, the Contract Maturity Guaranteed amount and the death Guaranteed amount. Please see section 7, Guarantees for more information.

The values of the Units of a Fund that are withdrawn fluctuate with the Market Value of the underlying assets and are not guaranteed.

6.2 Withdrawal options

There are two categories of withdrawal options: scheduled and unscheduled.

Scheduled options include Systematic Withdrawal Plans or “SWPs” that can be requested on an annual, semi-annual, quarterly or monthly basis.

For scheduled options relating to RRIF Contracts, you may elect to withdraw the RIF Minimum Amount or payments on a custom basis (you select the amount). We are required to pay you the RRIF Minimum Amount even though you may have elected a lesser amount. For certain locked-in plans, the amount withdrawn cannot exceed the maximum annual amount prescribed by applicable legislation.

Unscheduled options may be customized in amount and frequency at your discretion, subject to our minimum withdrawal amounts.

6.3 Processing a Withdrawal

A withdrawal request will be processed when it is received in good order at our Head Office. We will pay you the value of the withdrawn Units, after deducting:

• any applicable Deferred Sales Charge,

• any unpaid administrative fees and charges you owe us, and

• any applicable withholding tax.

We have the right to delay the effective date of any withdrawal order from any Fund for up to seven business days in order to properly process your withdrawal.

In the event of exceptional or unusual circumstances, we have the right to delay payment of any withdrawal amount for the duration of the exceptional or unusual circumstances.

If the value of the Fund on the date of the withdrawal is insufficient to permit us to make the requested withdrawal, we will proceed as follows:

• In the case of an unscheduled withdrawal, the withdrawal will not be processed and we will request further instructions from you.

• In the case of a scheduled withdrawal, the withdrawal will be processed based on our current administrative practices.

6.4 early Withdrawal Fees and recovery of expenses

We may apply an early withdrawal fee of 2% of the value of Units withdrawn if the withdrawal is made within 90 days of allocating those Units to the Contract. This fee does not apply to scheduled withdrawal payments nor to the 10% free withdrawal privilege. This fee will be in addition to any applicable DSC. ivari reserves the right to change this fee at any time upon 60 days advance notice.

The early withdrawal fee will reduce the Maturity Guaranteed Amount and Death Guaranteed Amount proportionally.

If your Contract is non-registered, the early withdrawal fee will be considered a disposition under the Income Tax Act (Canada) and will be taxable. For more information, please refer to section 15.2 – Taxation of Non-Registered Contracts for more information.

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6.5 Information Specific to rrIF/lIF/ rlIF/PrIF Contracts

6.5.1 rrIF Payments

If you are the Owner of a RRIF/LIF/ RLIF/PRIF Contract:

• In the calendar year you purchase the RRIF, LIF, RLIF or PRIF Contract, you are not required to make a withdrawal from the Contract.

• Starting in the second calendar year, the Income Tax Act (Canada) requires that a minimum amount be paid to you from the Contract each calendar year. We refer to this amount as the RRIF Minimum Amount.

• The RRIF Minimum Amount is calculated by multiplying the closing Market Value of the Contract on December 31st of the previous year by the percentage determined under the Income Tax Act (Canada). When legislation permits, you can elect to have the RRIF minimum percentage based on the age of your spouse or common-law partner (as the terms are defined under the Income Tax Act (Canada). You must make this election at the time you purchase the Contract and once this election is made, it cannot be changed while the Contract is in force.

• If the total of your scheduled and unscheduled withdrawals in the calendar year is less than the RRIF Minimum Amount for that year, we are required to make a year-end payment to you to meet the RRIF Minimum Amount. Year-end payments will be applied using the scheduled withdrawal allocation we have on file, or if there are no allocations on file, using the default allocation subject to our Administrative Rules in place at that time.

• You may elect to customize your RRIF payments and withdraw an amount greater than your RRIF Minimum Amount. The Custom/Level payment option, payment allocation instructions and the payment frequency you select will remain in effect until you file a written request with us to change it.

6.5.2 lIF/rlIF Maximum amount

The maximum payment amount for LIF and RLIF Contracts is calculated in accordance with the formula specified by the applicable pension legislation.

For the initial calendar year, the maximum amount may be prorated based on the number of months the Deposit is held in the Contract..

6.5.3 Contracts Held as Self-directed rrIFS (Including lIF/rlIF/PrIF)

If your Contract is held in a self-directed plan, your Contract is considered non-registered with ivari. The trustee of your plan is required to satisfy the requirements necessary to comply with a RRIF under the Income Tax Act (Canada) and has to make annual minimum payments to you from the investments you hold within the self-directed plan.

7. GUaranTeeS


The Contract provides a Contract Maturity Benefit and a Death Benefit guarantee.

The Contract Maturity Benefit provides that on the Contract Maturity Date, if the Market Value of your Contract is lower than the applicable Contract Maturity Guaranteed Amount, we will increase the value of your Contract to equal the Contract Maturity Guaranteed Amount.

The Death Benefit provides that on the Death Benefit Date, if the Market Value of your Contract is lower than the Death Guaranteed Amount, we will increase the value of your Contract to equal the Death Guaranteed Amount.

We reserve the right to add new Guarantee Classes. We will provide notice of such a change.

The guaranteed amounts are calculated as follows:

Guaranteed Benefits description of Guarantees

Contract Maturity Guaranteed Amount

75% of your Deposits*

Death Guaranteed Amount 100% of your Deposits*

* Less a proportional market value reduction for withdrawals and client-initiated transaction fees

When we increase the value of the Contract to equal the Contract Maturity Guaranteed Amount or Death Guaranteed Amount, we call this a Top-up Benefit.

Only the Death Guaranteed Amount is increased by Resets. Please see section 7.3.2 Resets of the Death Guaranteed Amount.

7.2 Contract Maturity Benefit

This Contract provides for a guarantee on Contract maturity called the Contract Maturity Benefit.

Under the Contract Maturity Benefit provision, we guarantee that you will receive no less than an amount referred to as the Contract Maturity Guaranteed Amount. Therefore, if on the Contract Maturity Date, the Market Value of your Contract is lower than the Contract Maturity Guaranteed Amount, we will increase the Market Value of your Contract to equal the Contract Maturity Guaranteed Amount.

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7.2.1 Contract Maturity Guaranteed amount

The Contract Maturity Guaranteed Amount:

• Is set by the value of the first Deposit to the Contract,

• Increases by the value of additional Deposits,

• Reduces proportionally by withdrawals,

• Reduces proportionally by client-initiated transaction fees.

To determine the Contract Maturity Guaranteed Amount after a withdrawal, the formula is as follows: (a – P)

Where a is the Contract Maturity Guaranteed Amount before the Withdrawal

P is the proportional market value reduction of the Withdrawal and is equal to a x (B/C) where:

B is the value of the Units withdrawn; and

C is the Market Value of the Contract before the withdrawal

When calculating the Contract Maturity Benefit for Deposits made under the initial sales charge option, we will not deduct the initial sales charge from the Premium. Therefore, the Maturity Guaranteed Amount will not be less than 75% of the Premium less proportional market value reductions for withdrawals.

Please consider that, when the market value of the Units withdrawn is lower than the market value of those Units on the deposit date, the proportional reduction due to the withdrawal will reduce the Contract Maturity Guaranteed amount and death Guaranteed amount by more than the amount of the withdrawal.

date Transaction amountMarket Value of Contract Before

Transaction

Market Value of Contract

after Transaction

Contract Maturity Guaranteed

amount Before Transaction

Contract Maturity Guaranteed amount

after Transaction

May 5, 2017 First Deposit $25,000 N/A $25,000 N/A$18,750

(75% of $25,000)

Aug 4, 2017 Additional Deposit $70,000 $27,000 $97,000 $18,750$71,250 =

($18,750 + $52,500 (75% of $70,000))

Nov 5, 2018 Withdrawal $4,750 (B) $100,000 (C) $95,250 $71,250 (a)$67,865.62 ($71,250 –

$3,384.38*)

* The value of the Contract Maturity Guaranteed Amount is calculated as follows: (a – P) = ($71,250 – $3,384.38) = $67, 865.62 Where P = a x (B/C) = $71, 250 x ($4,750/$100,000) = $3,384.38

date Transaction amountMarket Value of Contract Before

Transaction

Market Value of

Contract after Transaction

Contract Maturity Guaranteed

amount Before Transaction


after Transaction

May 5, 2017 First Deposit $25,000 N/A $25,000 N/A$18,750

($25,000 x 75%)

Aug 4, 2017 Additional Deposit $70,000 $23,000 $93,000 $18,750$71,250 =

($18,750 + $52,500 (70,000 x 75%))

Nov 5, 2018 Withdrawal $4,750 (B) $68,000 (C) $63,250 $71,250 (a)$66,272.98($71,250 – $4,977.02*)

* The value of the Contract Maturity Guaranteed Amount is calculated as follows: (a – P) = ($71,250 – $4,977.02) = $66, 272.98 Where P = a x (B/C) = $71, 250 x ($4,750/$68,000) = $4,977.02

a) example where the Market Value is GreaTer than the Contract Maturity Guaranteed amount at the time of a withdrawal.

b) example where the Market Value is leSS than the Contract Maturity Guaranteed amount at the time of a withdrawal.

The following examples illustrate the Contract Maturity Guaranteed Amount and the impact of a Deposit and withdrawal in (a) rising and (b) declining markets.

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7.2.2 Contract Maturity date

Unless required by applicable pension legislation, the Contract Maturity Date is December 31st of the year the last surviving Annuitant turns age 100, or the last Valuation Date of that year if December 31st is not a Valuation Date.

The Contract Maturity Date is as follows for the types of Contract available.

Contract Type Contract Maturity date

Non-registered, RRSP, LIRA, LRSP, RLSP, RIF, LIF, PRIF, RLIF and TFSA

December 31st of the year in which the last surviving Annuitant turns age 100

New Brunswick LIRA and LIF


Newfoundland and Labrador LIRA and LIF


7.2.3 Contract Maturity Benefit

On the Contract Maturity Date, the Contract Maturity Benefit is calculated and it will be the greater of the:

(i) Contract Maturity Guaranteed Amount, and

(ii) Market Value of the Contract.

If the Market Value on the Contract Maturity Date is less than the Contract Maturity Guaranteed Amount, we will make up the difference. We refer to the difference as the “Top-up Benefit”.

When calculating the Contract Maturity Benefit for Deposits made under the initial sales charge option, we will not deduct the initial sales charge from the Premium. Therefore, the Contract Maturity Guaranteed Amount will not be less than 75% of the Premium less proportional market value reductions for withdrawals.

The following illustrates the Contract Maturity Benefit in 2 cases where: (a) the Market Value of the Contract is lower than the Maturity Guaranteed Amount; and (b) where the Market Value of the Contract is greater than the Maturity Guaranteed Amount.

Case deposit amount *


Market Value of Contract

Contract Maturity Benefit (amount you will receive)

(a) $100,000 $75,000 $65,000 $75,000

(b) $100,000 $75,000 $120,000 $120,000

* Assuming no withdrawals are made and no client initiated transaction fees applied


7.2.4 default annuity

If the Annuitant is living on the Contract Maturity Date, and we have not been notified of your maturity option, we will automatically apply the Contract Maturity Benefit to provide you with an immediate single life annuity, guaranteed for ten years in accordance with our Administrative Rules and applicable legislation. The annuity will be based on your life, be payable monthly and will be based on the rates in effect on the Contract Maturity Date.

The single life annuity contract will be subject to the terms of the Income Tax Act (Canada), if the Contract is registered.

We reserve the right to make payments in a lump sum if each payment is less than $50.

Payment of the annuity (or lump sum if applicable) fulfils our obligation under the Contract in full.

7.2.5 default annuity for Contracts Issued in quebec only

For Contracts issued in Quebec only, the annuity will be based on your life, be payable monthly and will be based on the rates in effect on the Contract Maturity Date. However, the annual annuity payment for each $1,000 shall not be lower than the amount set out in Table 1 for the applicable age on which the annuity is based.

The applicable age on which the annuity is based, is the age of the Annuitant.

Table 1 – annual annuity Payment per $1,000

age of annuitant annuity Payment

50 $15.39

55 $16.67

60 $18.19

65 $20.01

70 $22.23

75 $25.01

80 $28.58

85 $33.34

90 $40.01

95 $50.01

100 $66.67

For example, if the Contract Maturity Benefit is $100,000 and the age of the Annuitant is 90, the annual annuity payment per $1,000 for age 90 = $40.01. Therefore the Minimum Annual Annuity Payment is $4,001 = [($100,000 x 40.01)/1000]

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7.3 death Benefit

This Contract provides for a guarantee on death called the Death Benefit. The Death Benefit is the guarantee payable to the Beneficiary on the death of the last surviving Annuitant.

Under the Death Benefit provision, we guarantee that the Beneficiary will receive no less than an amount referred to as the Death Guaranteed Amount. Therefore, if on the date the Death Benefit is calculated, the Market Value of your Contract is lower than the Death Guaranteed Amount, we will increase the Market Value to equal the Death Guaranteed Amount.

7.3.1 Transactions and events that Increase or decrease the death Guaranteed amount

The Death Guaranteed Amount is:

• set at an amount equal to 100% of the value of the first Deposit to the Contract

• increased by 100% of the value of additional Deposits

• increased by Resets

• reduced proportionally by withdrawals.

To determine the Death Guaranteed Amount after a withdrawal, the formula is as follows: (a – P)

Where a is the Death Guaranteed Amount before the Withdrawal

P is the proportional reduction of the Withdrawal and is determined as a x (B/C) where:


C is the Market Value of the Contract before the withdrawal

Please consider that when the Market Value of the Units withdrawn is lower than the original deposit value of the Units withdrawn, the proportional reduction due to the withdrawal will reduce the death Guaranteed amount by more than the actual amount of the withdrawal.

7.3.2 resets of the death Guaranteed amount

The Death Guaranteed Amount has the potential to increase by Resets.

Every year, on the Policy Anniversary Date, if the Market Value of the Contract is greater than the Death Guaranteed Amount, we will automatically reset the Death Guaranteed Amount to equal the Market Value of the Contract.

Resets will be exercised until the policy anniversary date in the year the Annuitant turns 75.

Below is an example to illustrate the maximum date for when the reset of the Death Guaranteed Amount will occur.

Policy anniversary date annuitant’s age* reset allowed?

May 23, 2017 73 Yes

May 23, 2018 74 Yes

May 23, 2019 75 No

* Annuitant’s attained age as of the policy anniversary date with an assumed date of birth of September 29, 1943

The reset feature may be changed or discontinued at any time upon 60 days prior written notice.

The following illustrates the impact to the Death Guaranteed Amount as a result of an additional Deposit, a Withdrawal, and a Reset. No fees have been considered for this example.

date Transaction/ event amount Market Value of the

Contract before Transaction/

event

Market Value of the Contract

after Transaction/ event

death Guaranteed

amount before Transaction/

event

death Guaranteed amount after

Transaction/ event

April 10, 2017 Initial Deposit $100,000 – $100,000 – $100,000

Dec 21, 2017 Subsequent Deposit $50,000 $105,000 $155,000 $100,000 $150,000

Jan 15, 2018 Withdrawal $7,500 (B) $156,000 (C) $148,500 $150,000 (a) $142,788.46 = ($150,000 - $7211.54*)

April 10, 2018 Reset – $160,000 $160,000 $142,788.46 $160,000 (since $160,000 > $142,788.46)

June 20, 2018 Withdrawal $5,000 (B) $135,000 (C) $130,000 $160,000 (a) $154,074.07 = ($160,000 - $5,925.93**)

* For further clarification, the value of the proportional reduction withdrawal to the Death Guaranteed Amount is calculated as follows: (a – P) = $150,000 – $7,211.54 = $142,788.46

Where P = a x (B/C) = $150,000 x ($7,500/$156,000) = $7,211.54

** For further clarification, the value of the proportional reduction withdrawal to the Death Guaranteed Amount is calculated as follows: a x (B/C) = $160,000 x ($5,000/$135,000) = $5,925.93

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7.3.3 death Benefit date

The Death Benefit is calculated on the Death Benefit Date. The Death Benefit Date is the Valuation Date we receive satisfactory proof of the death of the last surviving Annuitant. Satisfactory proof of death is determined under our Administrative Rules.

7.3.4 death Benefit

The Death Benefit is the greater of the:

(i) Death Guaranteed Amount; and


If the Market Value on the Death Benefit Date is less than the Death Guaranteed Amount, we will make up the difference. We refer to the difference as the Top-up Benefit. The Top-up Benefit, if applicable, will be payable as a part of the Death Benefit.

The Contract will terminate upon payment of the Death Benefit.


7.3.5 Process for determining the death Benefit

In some circumstances, there may be delays in obtaining satisfactory proof of death and we may be notified of the death of the Annuitant before receipt of proof of death (for example, a death certificate). In such event, on the date we are notified of the death of the last surviving Annuitant, we will switch all Units in the Funds held in the Contract into the ivari Canadian Money Market Fund or to another Fund we designate if the ivari Canadian Money Market Fund is not available. This date is called the “Notice Date”.

Notification of death must be in writing and meet the requirements set out in our Administrative Rules.

As of the Notice Date, no further transactions can be made. For example, scheduled withdrawals, including payments of RRIF Minimum Amounts will be stopped.

Subsequently, on the Valuation Date we receive proof of death, the Death Benefit will be calculated.

8. THe InVeSTMenT oPTIonS


This Contract gives you access to a full range of Funds.

The asset class categories of Funds include Money Market & Fixed Income, Canadian Balanced, Canadian Equity, U.S. Equity and Global Equity.

The underlying investments in a Fund may be units of a mutual fund, stocks, Exchange Traded Funds (ETFs), bonds, short-term notes or other selected investments. You do not acquire any ownership interest in the Funds or in the underlying investments when you make Deposits to the Contract.

For additional information about the Funds, please see the Fund Facts for the Funds available when you purchase the Contract.

For Funds available after the purchase of the Contract, please consult with your Advisor.

We may discontinue offering a Fund, add, merge or split Fund(s) within the Contract. If we discontinue offering a Fund, we will automatically reallocate your holdings in the discontinued Fund to a Similar Fund of our choice. This transaction may be a taxable event and subject to the Fundamental Change rule. Please see section 14.2, Fundamental Changes and Other Changes.

The Funds available within the ivari GIF Contract are also referred to as Guaranteed Investment Funds (GIFs) or Guaranteed Investment Portfolios (GIPs). A GIF will invest directly in securities, units of an underlying mutual fund or other investments as deemed appropriate by us and in accordance with the investment objective and investment policies of each GIF. A GIP will invest in several underlying mutual funds or other investments as deemed appropriate by us and in accordance with the investment objective and investment policies of each GIP. Collectively, the GIFs and GIPs comprise the Funds available within the ivari GIF Contract.

The Fund Facts pages provide you with the key features of each Fund. At the top of each Fund Facts page you will find the name of the Fund, the name of the Contract(s) offering the Fund, and the “as at” date for the information included on the page. The Fund Facts pages also provide some “Quick Facts” about the Fund, including the date the Fund became available within the Contract, the total value of the Fund, and the Management Expense Ratio (MER) of the Fund among other details. In addition to these Quick Facts about the Fund, the Fund Fact pages answer the following questions about each Fund:

• What does the Fund invest in?

• How has the Fund performed?

• How risky is it?

• Are there any guarantees?

• Who is the Fund for?

• How much does it cost?

• What if I change my mind?

The Fund Facts pages may not contain all the information you need. Please read the Annuity Policy and Information Folder.

The investment objective and investment policies of each Fund offered within the Contract can be found in appendix a. The investment policies and restrictions may change from time to time.

Should you require more information about the Funds available within the ivari GIF Contract, please write to us at 500 – 5000 Yonge Street, Toronto, Ontario M2N 7J8.

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For Funds that invest in underlying mutual fund(s), the fundamental investment objectives and investment strategies of the Underlying Fund(s) are presented within appendix B. You may also request a copy of the simplified prospectus, annual information form, financial highlights, and complete holdings related to the Underlying Fund(s) by writing to the applicable Underlying Fund manager at their respective addresses listed at the end of appendix B.

The Fund Facts should be read in conjunction with the ivari GIF Information Folder and Annuity Policy. The Information Folder provides brief and plain disclosure of all the material facts relating to the ivari GIF Contract. ivari is the sole issuer of the ivari GIF Contract and the guarantor of the guarantee provisions contained therein.


8.1.1 What is a Segregated Fund?

A segregated fund is an investment option available within an Individual Variable Insurance Contract commonly known as a segregated funds contract.

Each Fund available within the ivari GIF Contract is a segregated fund. A segregated fund is a pool of assets purchased with money contributed by policyholders with similar goals. Policyholders contribute money to their segregated funds contracts and it is pooled by a life insurance company and used to purchase assets. The assets of the segregated fund are owned by the insurance company. These assets are segregated from the company’s other assets.

Since the assets are owned by us, there is no need to divide the Fund into units. However, in order to administer the Funds and to record your contractual interests, we divide the Fund into notional units. You do not own the units in a Fund, nor can you direct the investment of the assets of the Fund. Segregated funds are regulated under the authority of provincial and federal insurance regulators.

8.1.2 ivari Guaranteed Investment Funds

ivari Guaranteed Investment Funds (GIFs) invest directly in securities, such as bonds, debentures and stocks. Some GIFs use a mutual fund “fund of fund” strategy, where the GIF invests its net assets in units of a select Underlying Fund. In the case where a GIF invests in an Underlying Fund, we reserve the right to change the Underlying Fund. If such a change constitutes a Fundamental Change as defined in section 14.1 of the Annuity Policy, you will have the rights described there. Changing an Underlying Fund to another similar Underlying Fund will not constitute a Fundamental Change provided that immediately following the change the total management fee of the ivari GIF is the same as or lower than the management fee and the insurance fee is within the maximum insurance fee limit applicable immediately prior to the change. A similar Underlying Fund is one that has a comparable fundamental investment objective, is in the same investment fund category and has the same or lower management fees, and the same or

lower maximum insurance fee limit as the Underlying Fund. The investment objective of an Underlying Fund may not be changed unless approved by the unitholders of the Underlying Fund. Upon such approval, you will be provided notice of the change.

8.1.3 ivari Guaranteed Investment Portfolios

Each ivari Guaranteed Investment Portfolio (GIP) allocates its assets among income and equity investments by investing in units of underlying mutual funds of a selected fund company and other investments as deemed appropriate by us. Each GIP has a target income and equity asset mix and offers you diversification through a professionally designed portfolio of Underlying Funds and investments. The GIPs are continuously monitored and, at least on a monthly basis, the underlying investments of a GIP are rebalanced if necessary to ensure that the portfolio corresponds to its target asset allocation. However, each GIP may vary to some extent from its target asset allocation mix between rebalancings.

We may change these targeted mixes and Underlying Funds at any time to better achieve the investment objective of each GIP. You will not be notified when the GIPs are rebalanced or when an Underlying Fund and/or its targeted weight is changed. You will only be notified if the change meets the definition of a Fundamental Change. In such an event, the Fundamental Change Rule in section 14.1 of the Annuity Policy will apply.

The investment objective and policies of each Underlying Fund within the ivari GIPs can be found in appendix B. Details of how to contact the managers of the Underlying Funds are also set out in appendix B.

8.1.4 Index Funds

Some of the Funds available within the ivari GIF Contract are considered “index funds”. Index funds seek to achieve returns similar to a generally recognized index. Index funds must include the word “index” in their name. Index funds do not use “active management” and therefore do not buy and sell securities based upon the portfolio advisor’s market, financial, and economic analysis. Index funds use “passive management”. The three typical forms of passive management, each of which obtains essentially the same result, are as follows:

1. Market/Index proportion. If the size and investment objective of the fund permit, the fund invests in the same companies and in approximately the same proportion as the market index being tracked. As a result, the net asset value of an index fund will fluctuate in approximately the same proportion as the index.

2. Optimization. A mathematical process known as “optimization” is used to identify the securities that would likely provide a return that is closest to the return of the index being tracked. Rather than holding the same companies in the same proportion, optimization allows the fund to hold a smaller number of securities in larger proportions versus the index, while at the same time approximately tracking the performance of the index.

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3. Substitution. Substitution involves the use of securities, such as Exchange Traded Funds (ETFs) and/or derivative instruments, such as futures, forwards contracts or similar instruments. The value of that instrument is based on, or derived from, the value of the market index or an underlying asset included in the index at the time the contract is bought or sold. As a result, substitution allows a fund to track the performance of an index, while not requiring it to hold the actual securities.

In trying to achieve returns similar to an index, an index fund incurs costs in managing its portfolio of assets, including costs associated with passive management. The fees associated with the fund will result in the performance of the fund not replicating the market index being tracked. This may also be the result if the index is calculated in a currency other than the Canadian dollar, giving rise to currency fluctuations.

Please refer to the Index Risk section for more information on the risks concerning index funds.

8.1.5 derivatives and their Permissible Use

Derivatives may be used by the Funds within the ivari GIF Contract but only in a manner consistent with the Fund’s respective investment objectives. Derivatives may also be used by the Underlying Funds, but their use must be consistent with the Underlying Fund’s investment objective and their use must conform to the relevant policies set out by securities regulators.

A derivative is a financial contract, usually between two parties. The value of the contract is derived from the market price, value or level of an underlying asset, such as a stock, bond, market index, currency, commodity or a basket of securities. The main appeal in using derivatives is that investors can capitalize on movements in the value of an underlying security at a fraction of the cost of buying the security outright. However, a derivative is not a direct investment in the underlying asset itself. Derivatives include a wide assortment of financial contracts including futures, forwards, options, and swaps.

With regards to the Funds available within the ivari GIF Contract, derivatives will not be used to create a portfolio with leverage. More precisely, derivatives may only be used in respect of a Fund if sufficient cash or cash-equivalent securities are held in the Fund in order that we may satisfy our obligations under the derivative instrument.

We may use derivatives to:

• Reduce Currency Risk. The fund manager may determine that it is beneficial to offset (or hedge), where appropriate, the currency exposure of foreign portfolio positions as protection against rate fluctuations. To achieve this objective, the fund manager may make use of exchange or over-the-counter traded, foreign currency options, futures contracts, forward contracts or other derivative instruments.

• Create Exposure to Specific Securities and Foreign Markets. The fund manager may wish to buy or sell options on specific securities rather than purchasing or selling the actual securities directly. As well, the fund manager may seek to participate in foreign markets by purchasing exchange traded stock index options, futures contracts, as well as foreign currency forward contracts.

• Enhance Returns and Lock-in the Price of Portfolio Investment. The fund manager may wish to enhance returns and lock-in the price of portfolio investments by writing covered call options. A call option is one in which one party is granted the right, for a period of time, to buy an asset at a certain price. A call option is said to be covered when the party selling the call option owns the underlying asset which will be sold if the call option is exercised.

We have no obligation to use such derivatives.

While derivatives can be useful for hedging against potential losses, making indirect investments and gaining exposure to financial markets and other assets, there is no guarantee that the use of derivatives by a fund will be effective. Please refer to the Derivatives Risk section for more information on the risks concerning derivatives.

8.1.6 The risks of Investing in Segregated Funds

Risk is the chance or possibility of loss. When investing, the element of risk can vary substantially. As a general rule, the higher the potential return, the higher the risk you must assume. This is known as the “risk/return trade-off”.

The volatility and performance of your investment will depend on the Fund’s underlying investments, the investment manager of the Fund, and general market conditions. The underlying investments may be units of mutual funds, pooled funds, stocks, bonds or other selected investments and securities. The value of these underlying investments will change from day to day, reflecting changes in interest rates, changes in general economic, political and market conditions, the release of information about a particular investment, issuer or industry sector, changes in the value of a relevant foreign currency relative to the Canadian dollar and other factors.

It should be understood that no matter what strategies might be adopted by a fund manager to manage the identified risks associated with the investments held in each Fund, the risks will remain many and uncertain in nature, duration and impact.

Leverage involves the use of borrowed money to help pay for an investment or the use of certain types of derivative instruments to simulate a specialized investment. Using leverage magnifies the amount of loss or gain on an investment. The funds do not employ leverage.

Below are descriptions of the various principal risks which may be applicable to the underlying investments of the Funds. Please refer to appendix C for information about which principal risks apply to each Fund available within the ivari GIF Contract.

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Capital Depreciation Risk

Some Underlying Funds aim to distribute a high level of income. In certain situations, such as periods of declining markets or increases in interest rates, an Underlying Fund may make distributions that include a return of capital. Where the total distributions by an Underlying Fund in a year exceed the Underlying Fund’s net income and net realized capital gains for the year, the net asset value of the Underlying Fund may be reduced, which could reduce the Underlying Fund’s ability to generate future income.

Cash Risk

A fund or Underlying Fund may have times when it increases the level of cash that it holds. This may be done by the portfolio manager in order to protect assets or to take advantage of buying opportunities. Cash is also needed to fund redemption requests. To the extent that a fund has a significant cash position, it may be able to avoid market declines, losses or instability. However, a significant cash position will also mean that the fund may risk not taking advantage of market advances to the extent that it otherwise could have.

Commodity Risk

The market value of a fund’s investments will likely be affected by adverse movements in commodity prices. When commodity prices decline, this has a negative impact on the earnings of the companies whose business is based on commodities, such as oil and gold.

Concentration Risk

A fund may have a high concentration of its investments in a single company. A relatively high concentration in a single or a small number of investments will have less diversification and this may have an adverse impact on the fund’s returns. Concentration can also lead to increased volatility and reduced liquidity of the fund.

Credit Risk

Credit risk is the risk that an issuer of a bond or other fixed income security won’t be able to pay interest or repay the principal when it is due. Credit risk is generally lowest among issuers that have a high credit rating from an independent credit rating agency. It is generally highest among issuers that have a low credit rating or no credit rating. The prices of securities with a low rating or no rating tend to fluctuate more than securities with higher interest ratings. They usually offer higher interest rates, which may help to compensate for the higher credit risk.

Depository Receipt Risk

Banks or other financial institutions, known as depositories, issue depository receipts that represent the value of securities issued by foreign companies. These receipts are most often known as ADRs (American Depositary Receipts), GDRs (Global Depositary Receipts), or EDRs (European Depositary Receipts), depending on the location of the depository. Funds invest in depository receipts to obtain

indirect ownership of foreign securities without trading on foreign markets. There is a risk that the value of the depository receipts may be less than the value of the foreign securities. This difference can result from several factors: fees and expenses related to the depository receipts; fluctuations in the exchange rate between the currency of the depository receipts and the currency of the foreign securities; differences in taxes between the depository receipts and the foreign securities’ jurisdictions; and the impact of the tax treaty, if any, between the depository receipts and the foreign securities’ jurisdictions. Also, a fund faces the risks that depository receipts may be less liquid, that the holders of depository receipts may have fewer legal rights than if they held the foreign securities directly, and that the depository may change the terms of a depository receipt, including terminating the depository receipt, in such a way that a mutual fund is forced to sell at an inopportune time.

Derivative Risk

The most common risks of using derivatives are as follows:

• There is no guarantee that hedging strategies which may be employed will be effective.

• There is no guarantee that a market will exist for some derivatives. This could prevent a fund from making a profit or limiting a loss.

• Some exchange traded derivatives may lack liquidity and the fund may not be able to close out its derivative positions. Derivative instruments in foreign markets may be less liquid and more risky than comparable instruments traded in North American markets.

• Exchange-imposed trading limits could affect the ability of a mutual fund to close out its positions.

• The price of a derivative may not accurately reflect the value of the underlying asset.

• The other party to a derivative contract may not be able to honour its obligations under the contract.

• There is no assurance that a fund’s hedging strategies will be effective. There may be an imperfect historical correlation between the behaviour of the derivative instrument and the underlying instrument. Any historical correlation may not continue for the period during which the hedge is in place.

• Using derivatives to hedge against changes in currencies, stock markets or interest rates cannot eliminate fluctuations in the prices of securities in a fund or prevent losses if the prices of these securities decline.

• Hedging may also limit the opportunity for gains if the value of the hedged currency or stock market should rise or if the hedged interest rate should fall.

• The inability to close out other options, futures and forward positions could prevent a fund from using derivatives to effectively hedge its portfolio or implement its strategy.

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Emerging Markets Risk

Investments in emerging market countries are generally considered to pose greater risks than foreign investments in established markets. In general, securities markets in emerging countries may be smaller than in more developed countries, making it more difficult to sell securities in order to take profits or avoid losses. Companies in these markets may have limited product lines, markets or resources, making it difficult to measure the value of the company. In general, emerging market countries have more fragile economies due to higher levels of inflation, higher government debt loads, and/or dependence on a relatively narrow industrial base. Political instability and possible corruption, as well as lower standards of regulation for business practices increase the possibility of fraud and other legal problems. The value of investments in these countries may rise and fall substantially.

Equity Risk

The price of equity securities – also called stocks or shares – are affected by stock market conditions and by general economic and financial conditions in those countries where the investments are listed for trading or elsewhere. The price of equity securities of certain companies or companies within a particular industry sector may also fluctuate differently than the stock market due to changes in the outlook for the company or the industry in which it operates. Historically, equity prices have been more volatile than prices for fixed income securities such as bonds. Accordingly, the value of funds whose assets are weighted towards equities may be more volatile that the value of funds whose assets are weighted towards fixed income securities.

ETF Risk

Certain funds may invest in exchange-traded funds (ETFs) which qualify as index participation units. ETFs seek to provide returns similar to the performance of a particular market index or industry sector index. ETFs may not achieve the same return as their benchmark market or industry sector indices due to differences in the actual weights of securities held in the ETF versus the weights in the relative index and due to the operating and management expenses of the ETFs.

Foreign Currency Risk

The value of securities issued in foreign currencies, or of securities that pay income in foreign currencies, is affected by changes in the value of the Canadian dollar relative to those currencies. For example, if the U.S. dollar rises relative to the Canadian dollar, U.S. shares will be worth more in Canadian dollars. On the other hand, if the U.S. dollar falls, U.S. shares will be worth less in Canadian dollars.

Foreign Investment Risk

There are some significant reasons to consider investing abroad. The economies of foreign countries may be growing much faster than Canada’s economy and this can mean that investments in those countries may grow more quickly too. Foreign investments

also give you diversification because all of your money isn’t staying in Canada alone. However, foreign investments may involve risks not usually associated with investing in the Canadian market. Besides Foreign Currency Risk, foreign investments also involve the following additional risks:

• The value of foreign securities and, hence, the value of funds whose portfolios include such securities may be influenced by world economic and political factors and foreign market conditions.

• Many foreign companies and countries do not have the same accounting, auditing and financial reporting standards that apply to North American companies.

• There may be less publicly available information about foreign companies and governments and the quality of the information may be less reliable.

• Some foreign stock markets may be smaller and less regulated than Canadian and U.S. exchanges. As a result of these and other factors, foreign markets may be more volatile and less liquid than North American markets.

• Trading large orders in foreign countries may cause the price to fluctuate more than it would in North America.

• A country may impose withholding or other taxes that could reduce the return on investment or foreign currency exchange controls, whether already in existence in a country or newly imposed, that may make it difficult to sell an investment.

• Political and social instability, restrictions on the movement of capital and the threat of expropriation or nationalization can affect the value of investments in less developed countries.

• Fixed-income securities bought on foreign markets – even some government bonds – are often quite risky as there is the danger that the issuer will not pay off the debt or that the price of the securities will drop rapidly.

The amount of risk also varies a lot from country to country. Securities in developed markets like Western Europe, for example, have lower foreign investment risk because they are generally well regulated and are relatively stable. Securities of governments and companies in emerging or developing markets of Southeast Asia and Latin America, for example, can have significant foreign investment risk. For more information, please refer to the Emerging Markets Risk section.

Income Trust and Limited Partnership Risk

Income trusts generally hold debt or equity securities in, or are entitled to receive royalties from, an underlying active business. Income trusts generally fall into four sectors: business trusts, power and pipeline trusts, resource-based royalty trusts and real estate investment trusts.

Investments in income trusts will have varying degrees of risk depending upon the sector and the underlying assets. In general, income trusts face the same risks as described in the Equity Risk section. They will also be subject to general risks associated with business cycles, commodity prices, interest rates and other economic factors.

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Returns on income trusts are neither fixed nor guaranteed. Typically income trusts and other securities that are expected to distribute income are more volatile than fixed-income securities and preferred shares. The value of income trust units may decline significantly if they are unable to meet their distribution targets. There is also the remote risk that where claims against an income trust are not satisfied by that trust, investors in the trust could be held liable for the outstanding obligations. Some, but not all, jurisdictions have enacted legislation to protect investors from some of this liability.

Changes have also been enacted to the Income Tax Act (Canada) which affects the way certain income trusts and limited partnerships are taxed. Generally, the new rules include a tax on certain publicly-traded income trusts (not including certain real estate investment trusts) and limited partnerships with respect to certain distributions or income allocations made by such entities. The changes will reduce the tax effectiveness of affected income trusts and limited partnerships. In addition, the changes have had, and may continue to have, an affect on the trading price of such income trusts and limited partnerships, which may affect the value of a Fund or Underlying Fund that holds such investments.

Index Risk

Index funds seek to provide returns similar to the performance of their respective benchmark indices. However, an index fund’s ability to match the return of the index is influenced by the operating and management expenses incurred by the fund, as well as by costs incurred when using particular passive investment strategies (i.e. market/index proportion, optimization, substitution or any combination thereof) for tracking the performance of such index. Certain expenses are affected by the size of the fund, the composition of each index, the level of trading activity by the fund’s unitholders, and the cash flows experienced by the fund among other factors. Frequent trading results in additional expenses, which may hamper a fund’s ability to achieve a return similar to that of its benchmark index.

Index funds may invest more than 10% of their assets in securities of any one issuer in order to satisfy their investment objectives and more accurately track an index. As the fund’s assets may be more exposed to any issuer, any increase or decrease in the value of that issuer will have a greater impact on a fund’s net asset value and total return. Therefore, an index fund could be more volatile than an actively managed fund that is limited to investing no more than 10% of its assets in securities of any one issuer. An index fund that concentrates its investments could have greater fluctuations in value than funds with broader diversification. The more an index fund concentrates its assets in any one issuer, the more volatile and less diversified it may be. As a result, it may be more difficult to get a preferred price in the event of large redemptions by unitholders.

There is also the risk that the securities or weighting of the securities that constitute an index that a fund tracks will change. In addition, neither the companies whose securities form part of the index, nor the inclusion or removal of a company’s securities from

an index, is within the control of the index fund. In such a situation, the fund may experience a higher portfolio turnover rate and increased costs such as transaction and custodian costs.

Finally, where fair value pricing is used to value assets of a fund, it may account for some of the difference in the tracking of the fund (valued using fair value pricing) to the relevant index (valued using end-of-day prices).

Interest Rate Risk

The interest rate on a bond is set when it is issued. When interest rates fall, the price of existing bonds will rise because existing bonds pay higher rates than new bonds, and are therefore worth more. On the other hand, when interest rates rise, the price of existing bonds will fall, and so will the value of the Fund or Underlying Funds that hold such bonds. The value of debt securities that pay a floating or variable interest are generally less price sensitive to interest rate changes.

Funds that invest in convertible securities also carry interest rate risk. These securities provide a fixed income stream, so their value varies inversely with interest rates, just like bond prices. However, because they can be converted to common shares, convertible securities are less affected by interest rate fluctuations than bonds.

Large Investor Risk

Units of mutual funds may be purchased and sold by large investors, such as financial institutions or other mutual funds. These investors may purchase or redeem large numbers of units of a fund at one time. The purchase or redemption of a substantial number of units may require the portfolio manager of the Underlying Fund to change the composition of the Underlying Fund significantly or may force the portfolio manager to buy or sell investments at unfavourable prices, which can also affect the fund’s performance and may increase realized capital gains of the fund.

Liquidity Risk

Liquidity risk is the possibility that a fund will not be able to convert its investments to cash when it needs to. Some securities are illiquid because of legal restrictions, the nature of the investment itself, settlement terms, a shortage of buyers or other reasons. Generally, investments with lower liquidity tend to have more dramatic price changes.

Low Rated or Unrated Securities Risk

Some investments offer a better return than others because they carry higher risk. They may have a credit rating below investment grade or be unrated. These investments may be hard to value because market quotations are unavailable, and they may be less liquid than higher-grade investments. Below investment grade and unrated securities involve significant risk exposure as there is less certainty regarding the issuer’s ability to pay interest and repay principal in the case of fixed income securities or to pay dividends and redeem shares in the case of preferred shares, in accordance with the

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issuer’s obligations. Low rated and unrated securities have the potential for substantial loss as well as gain, as will the funds which invest in such securities. This type of risk is similar to Credit Risk.

Mortgage-Backed and Asset-Backed Securities Risk

Mortgage-backed securities are debt obligations backed by pools of mortgages on commercial or residential real estate. Asset-backed securities are debt obligations that are backed by pools of consumer or business loans. Some asset-backed securities are short-term debt obligations, called asset-backed commercial paper (“ABCP”). If there are changes in the market perception of issuers of these types of securities, or in the creditworthiness of the parties involved, then the value of the securities may be affected. In the case of ABCP, there is an additional risk that there may be a mismatch in timing between the cash flow of the underlying assets backing the security and the repayment obligation of the security upon maturity. In the case of mortgage-backed securities, there is also the risk that there may be a drop in the interest rates charged on the mortgages, a mortgagor may default on its obligations under a mortgage or there may be a drop in the value of the property secured by the mortgage.

Multi-Class or Series Risk

Although a fund may offer separate classes or series of units, the fund is a single legal entity. Accordingly, the investment performance, expenses or liabilities of one class or series may affect the value of the units of another class or series. In particular, expenses significantly attributable to a class or series of units will initially be deducted in calculating the unit price only for the class or series of units. However, those expenses will continue to be liabilities of the fund as a whole, if there are insufficient assets of a class or series to pay those expenses, the remaining assets of this fund would be used to pay the excess expenses.

Municipal Obligation Risk

Certain funds may invest in municipal obligations as part of its cash management techniques. In addition to the usual risks associated with investing for income, the value of municipal obligations will be affected by changes in actual or perceived credit quality. The credit quality of a municipal obligation will be affected by, among other things, the financial condition of the issuer or guarantor, the issuer’s future borrowing plans and sources of revenue, the economic feasibility of the revenue bond project or general borrowing purpose, political or economic developments in the region or jurisdiction where the security is issued and the liquidity of the security. Because municipal obligations are generally traded over-the-counter, the liquidity of a particular issue often depends on the willingness of dealers to make a market in the security. The liquidity of some municipal issues can be enhanced by demand features which enable the investor to demand payment from the issuer of a financial intermediary on short notice.

Passive Management Risk

Similar to funds that are managed to track an index, some funds may also use passive management for a component of the fund, and to that extent may be subject to similar risks as funds that are managed to track an index. Please refer to both Index Risk and ETF Risk.

Repurchase and Reverse Repurchase Agreements Risk

Sometimes funds enter into what are called repurchase transactions and reverse repurchase transactions. A repurchase transaction is where a fund sells a security to a party for cash and agrees to buy the same security back from the same party at a higher price on an agreed future date. In a reverse repurchase transaction, a fund buys a security at one price from a third party and agrees to sell the same security back to the same party at a higher price on an agreed future date.

The risk with these types of transactions is that the other party may default under the agreement or go bankrupt. In a reverse repurchase transaction the fund is left holding the security and may not be able to sell the security at the same price it paid for it, plus interest, if the other party defaults and the market value for the security has dropped in the meantime. In the case of repurchase transaction, the fund could incur a loss if the other party defaults and the value of the security sold has increased more than the value of the cash and collateral held.

To reduce risks, the other party to the transaction is required to put up collateral to the fund. The value of the collateral has to be at least 102% of the market value of the security sold (for a repurchase transaction) or of the cash paid for the securities purchased (for a reverse repurchase transaction). Repurchase and securities lending transactions (see Securities Lending Risk) are limited to 50% of a fund’s assets, excluding the cash held by the fund for securities sold in a repurchase transaction and collateral or sales proceeds received in a securities lending transaction.

Securities Lending Risk

Some funds may engage in securities lending transactions. In a securities lending transaction, the fund lends portfolio securities held by the fund to qualified borrowers who have posted collateral for a fee and a set period of time. In lending its securities, the fund is subject to the risk that the borrower may not fulfill its obligations leaving the fund holding collateral worth less than the securities it has lent, resulting in a loss to the fund.

To limit this risk, a fund must hold collateral worth no less than 102% of the market value of the loaned securities and the amount of the collateral is adjusted daily to ensure the level is maintained. The collateral may only consist of cash, qualified securities or securities that can be immediately converted into identical securities to those that have been loaned. To further limit risk, a fund cannot lend more than 50% of the total value of its assets through securities lending or repurchase transactions (see Repurchase and Reverse Repurchase Agreements Risk) and a fund’s total exposure to any one borrower in securities, derivative transactions and securities lending must be less than 10% of the total value of the fund’s assets.

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Short Selling Risk

Some funds may engage in a limited amount of short selling. A “short sale” is where a fund borrows securities from a lender and sells them in the open market. The fund must repurchase the securities at a later date in order to return them to the lender. In the interim, the proceeds from the short sale are deposited with the lender and the fund pays the interest to the lender on the borrowed securities. If the value of the securities declines between the time of the initial short sale and the time it repurchases and returns the securities, the fund makes a profit for the difference (less any interest paid by the fund to the lender). If the price of the borrowed securities rises, however, a loss will result.

There are risks associated with short selling, namely that the borrowed securities will rise in value or not decline enough to cover the fund’s costs. The fund may also experience difficulties in repurchasing the borrowed securities if a liquid market for the securities does not exist. In addition, the lender from whom the fund has borrowed securities may become bankrupt, causing the borrowing fund to lose the collateral it deposited with the lender.

To limit the risks associated with short sale transactions, a fund will adhere to controls and limits that are intended to offset these risks by short selling the securities of larger issuers for which a liquid market is expected to be maintained and by limiting the amount of exposure for short sales. A fund will also deposit collateral only with lenders that meet certain criteria for creditworthiness and only up to certain limits. Although some funds may not engage in short selling directly, they may be exposed to short selling because the Underlying Funds in which they invest may be engaged in short selling.

Small Company Risk

Small companies can be riskier investments than large companies. Small companies are often newer and may not have the track-record, have limited financial resources or not have well-established markets for their products. Smaller companies generally have fewer shares trading in the market than larger companies, so a buy or sell of their shares will have a greater impact on their share price. The value of funds that buy these investments may rise and fall significantly over short periods of time.

Small Fund Risk

A Fund with a low net asset value may be at risk of being discontinued and reallocated to another Fund as it does not have sufficient assets to be effectively managed. Please see section 8.1 The Investment Options, of the ivari GIF Information Folder for more information.

Specialization Risk

Some funds specialize in investing in a particular industry or region of the world. Specialization lets the portfolio manager focus on the potential of that industry or geographic area, but it also means that the fund may be more volatile if there is a downturn in the industry or geographic area since there are relatively few other investments to offset the downturn. These specialty funds must continue to invest in a particular industry or geographic area even if it is not growing.

Target-Date Risk

Target-date funds, also referred to as “lifecycle” or “age-based” funds, operate under an asset allocation formula that adjusts its asset allocation to become more conservative over time typically by increasing its fixed income allocation and reducing its equity allocation as the fund gets closer to the target year. The target year is generally identified in the name of the fund. While these funds are a convenient option for many investors, the asset allocation is not necessarily appropriate for every investor depending on the risk profile/expectations of the investor.

Tax Change Risk

There can be no assurance that changes will not be made to the rules affecting the taxation of a Fund or a Fund’s investments, or in the administration of such tax rules.

Tracking Risk

Certain funds may seek to have all or a substantial portion of their returns linked to the performance of one or more Underlying Funds. This is achieved by the Fund directly purchasing units of these Underlying Fund(s). The return of the Fund may be lower than that of the Underlying Fund(s) because the Fund bears its own fees and expenses, and there may be delays between the time any monies are invested in the Fund and those monies are used to purchase units of the Underlying Fund(s).

Underlying Fund Risk

Some funds (for this purpose, the “top fund”) invest some or all of their assets in units or shares of other Underlying Funds. If the investors in the top fund redeem large amounts of their units resulting in corresponding redemptions by the top fund in the Underlying Funds, the Underlying Funds may have to liquidate some of their investments at unfavourable prices in order to fund such redemption requests. Such activity can reduce the returns of the Underlying Funds, and therefore, the performance of the top fund as well. This type of risk is similar to Large Investor Risk.

any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value.

8.2 Investment objective, Policy and restrictions

For each Fund, we will describe the investment objective and the investment policy, restrictions and risks applicable to that Fund. The investment policy and restrictions may change from time to time. ivari’s investment policies comply with the Canadian Life and Health Insurance Association Inc. (CLHIA) Guidelines on Individual Variable Insurance Contracts Relating to Segregated Funds, as amended, and approved by the CLHIA Board of Directors and the Canadian Council of Insurance Regulators as well as the Autorité des marches financiers (AMF) Guidelines.

We may also change the fundamental investment objective of a Fund. A change to the fundamental investment objective is considered a fundamental change. Please see section 14.2, Fundamental Changes and Other Changes.

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8.3 Investment Management of the Funds

As part of our responsibility for the day-to-day management of the Funds, we have retained on a non-exclusive basis various portfolio managers to manage the assets of the Funds. The portfolio manager is the person or team of people who are directly responsible for the investment decisions of any Fund.

The names and addresses of the portfolio managers and their relationships to us, for each Fund, can be found in the Fund Facts.

With regards to conflicts of interest between us and a portfolio manager, we have reserved the right to terminate, if necessary, the portfolio manager.

We have the right to change the portfolio manager of any Fund, at any time at our discretion.

We have the right to change an Underlying Fund of any Fund, at any time at our discretion. Please see section 14.2, Fundamental Changes and Other Changes for more information.

Please see the Fund Facts section for the investment objective, policy, restrictions and risks applicable to each Fund.

9. HoW We CalCUlaTe THe ValUe oF YoUr InVeSTMenT

9.1 net asset Value of a Fund

On each Valuation Date, we calculate the net asset value for Units of each Fund. The net asset value is the total market value of the Fund’s assets minus any applicable liabilities, on that date.

The net asset value of a Fund fluctuates with the market value of the underlying assets of the Fund and is not guaranteed.

9.2 Unit Value of a Fund

The Unit Value of a Fund is determined by dividing the net asset value of a Fund by the number of Units held in the Fund on that Valuation Date.

The Unit Value of a Fund remains in effect until the next Valuation Date.

All earnings of a Fund are automatically reinvested in the Fund and this will be reflected in the Unit Value of the Funds.

ivari reserves the right to change this method of reinvesting a Fund’s earnings following written notice to policyholders.

ivari may increase the number of Units of a Fund by splitting a unit into two or more Units, or decrease the number of Units by combining two or more Units. However, the market value of the Funds in your Contract will not be affected by this activity.

The Unit Value of a Fund is not guaranteed but varies in accordance with fluctuations in the market value of the assets of each Fund.

9.3 Valuation date

We determine the net asset value and the Unit Value of a Fund at the close of business on every Valuation Date.

A Valuation Date occurs every day that the principal exchange is open for business and a value is available for the underlying assets of the Fund. Currently, the principal exchange is the Toronto Stock Exchange. We may change the principal exchange to another exchange.

All transactions (e.g. Deposits, withdrawals, transfers) are processed based on the market value as at the close of business on the Valuation Date provided we receive, at our Head Office, the instructions or transactions by the Valuation Date cut-off time according to our Administrative Rules. If we receive instructions or transactions after the cut-off time, it will be considered to be received on the next Valuation Date.

ivari reserves the right to change the Valuation Date cut-off time (earlier or later).

Please contact your Advisor for the Valuation Date cut-off time that may apply to your specific transaction request.

ivari reserves the right to reduce the frequency with which the Unit Value of a Fund is calculated, subject to a minimum frequency of once a month. If such an event occurs, you are provided with certain rights. Please see section 14.2, Fundamental Changes and Other Changes for more information.

We may postpone valuation:

(i) for any period during which one or more of the nationally recognized stock exchanges are closed for other than a customary weekend or holiday closing,

(ii) for a period during which trading on securities exchanges is restricted, or

(iii) when there is an emergency during which it is not reasonable for us to dispose of investments owned by the Funds or to acquire investments on behalf of the Funds or to determine the total value of the Funds.

9.4 Market Value of the Contract

The Market Value of your Contract on any given Valuation Date is determined according to the following formula:

Market Value of your Contract = sum of [(Unit Value x number of Units) for each Fund you hold in the Contract]

10. SaleS CHarGe oPTIonS


You may have to pay sales charges when depositing or withdrawing from the Contract, depending on the sales charge option of the Funds that you choose. There are two sales charge options under the Contract: ISC option and DSC option.

The amount of sales charges are determined by the Fund category and sales charge option of the Fund.

While the Contract is in force, you may request that Funds that are allocated under one sales charge option be moved to a Fund of another sales charge option in accordance with our Administrative

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Rules in effect at the time. Moving between Funds of different sales charge options is processed as a withdrawal of Units of one Fund and a Deposit to the Contract. Guarantees will be impacted and sales charges and withdrawal fees may be triggered.

The movement between Funds of different sales options are subject to market fluctuations. as this transaction will impact guarantees, you may want to consult your advisor before requesting such transaction.

We reserve the right to change, add or delete sales charge options at any time.

10.2 Initial Sales Charge option (ISC)

With this option, you negotiate the sales charge with your Advisor. The negotiated sales charge is between 0% and 5% of your Premium. The negotiated sales charge will be deducted from the Premium to determine the Deposit. For example, if you invest $25,000 and you negotiate a 5% initial sales charge, $23,750 will be the amount of the Deposit and $1,250 will be paid to your Advisor as a sales charge. Units allocated to a Fund under this option are called ISC Units. There is no Deferred Sales Charge when you make a withdrawal against these Units.

10.3 deferred Sales Charge option (dSC)

With this option, you pay no sales charge to your Advisor at the time of Deposit. Instead, you agree to pay a Deferred Sales Charge to us if you request a withdrawal within six years of the effective

date of each Deposit. Units allocated to your Contract under this option are called DSC Units.

10.3.1 deferred Sales Charge (dSC) Upon Withdrawal

The DSC is charged as a percentage of the market value as of the Deposit date of the DSC Units withdrawn. The percentage charged varies based on the time that has passed since the effective date of Deposit. The DSC schedule is as follows:

When the Units are

withdrawn:

dSC (as a percentage of the market value of dSC Units

as of the deposit date)During the 1st year after Deposit 6.0%

During the 2nd year after Deposit 5.0%

During the 3rd year after Deposit 4.0%

During the 4th year after Deposit 3.0%




This Deferred Sales Charge schedule is subject to change and any new Deposits made after such change will be subject to the new Deferred Sales Charge schedule.

We withdraw Units from the Funds you have selected in the order they were allocated to a Fund – first in, first out, withdrawing the oldest Units first until the total requested amount is withdrawn.

date Transaction/event amount Unit Value number of Units Free Units

Dec 30, 2016 Deposit $25,000.00 $10.00 2,500 250 (2,500 X 10%)

Jan 12, 2017 Deposit $5,500.00 $11.00 500 25.890*

Apr 20, 2017 Deposit $6,000.00 $12.00 500 12.466**

Jul 20, 2017 10% free withdrawal requested $3,748.63 $13.00 — 288.356

10.4 Free Withdrawal Privilege for dSC Units

You are entitled in each calendar year to withdraw 10% of the number of DSC Units allocated to a Fund without paying DSC. Any unused portion of the privilege may not be carried forward from one year to the next. We reserve the right to discontinue or change this right at any time.

The number of DSC Units that may be withdrawn from a Fund each year under the free withdrawal privilege for DSC Units is the sum of the following:

(i) 10% of the DSC Units that were allocated to the Fund at the end of the previous calendar year, and

(ii) 10% of DSC Units allocated to the Fund in the current year, prorated by the number of days the Units have been held in the current year (not including the day of allocation) (In prorating, we divide by 366 for leap years and by 365 for non-leap years); less

(iii) any DSC Units withdrawn from the Fund in the current year under this privilege.

The standard provision under Processing a Withdrawal will apply to free withdrawals.

The following example is for a non-registered Contract:

* (10% of 500 DSC Units = 50 free additional Units in aggregate) x 189/365† = 25.890 free Units available to be withdrawn as of July 20, 2017** (10% of 500 DSC Units = 50 free additional Units in aggregate) x 91/365†† = 12.466 free additional Units available to be withdrawn from your Fund as

of July 20, 2017 Total free Units available to be withdrawn from your Fund as of July 20, 2017 are 250 + 25.890 + 12.466 = 288.356 free additional Units. † 189 represent the number of days from January 13 to July 20 inclusive†† 91 represent the number of days from April 21 to July 20 inclusive

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11. FeeS


The management fee is the fee you pay for the management of the Funds, commissions and service fees payable to Advisors.

The insurance fee is the fee you pay for the insurance benefits provided by the Contract. The insurance benefits provided by the Contract are the Contract Maturity Benefit, the Death Benefit and Resets of the Death Guaranteed Amount.

The management fee, insurance fee together with operating expenses and applicable taxes of a Fund are incorporated in the Management Expense Ratio (MER) of a Fund.

The Contract is subject to switch fees. We reserve the right, in certain circumstances, to charge an early withdrawal fee and an early switch fee to dissuade activity that may be detrimental to the Funds and all policyholders. Certain fees are subject to applicable taxes.

11.2 Management Fee, Insurance Fee and operating expenses

Each Fund pays a management fee to us for the management of the Fund, which includes the costs for investment management services and facilities to support the Funds, and commissions and service fees payable to Advisors.

Where the Fund invests in an Underlying Fund, the management fee and the MER of the Fund includes the corresponding management fee and the MER of the Underlying Fund(s), and there is no duplication of management fees for the same service, and the management fee and MER of the Fund includes the management fee and MER of the Underlying Fund.

Each Fund also pays an insurance fee to us for providing the insurance benefits of the Contract. Each Fund also pays its own operating expenses. Operating expenses accrue daily and include, among other things:

• Audit, accounting and financial costs

• Custodial and trustee costs

• Legal and regulatory costs

• Bank service fees and interest charges

• Policyholder communications and related administrative costs

• Applicable taxes

Depending on the risk level and volatility of the Fund, each Fund will be assigned, at our discretion, an insurance fee. The more risk and volatility associated with a Fund, the higher the insurance fee is for that Fund.

Each Fund is responsible for the cost of the insurance fee, which can be increased at any time by the Company. We may change the amount of the insurance fee of a Fund, up to the maximum insurance fee of the Fund, without prior notification. In this case we will let you know annually whether any such increases occurred. If there is an increase to the maximum insurance fee of the Fund, we will provide you with at least 60 days advance notice and you

will have the rights outlined under the Fundamental Change Rule. Please see section 14.2, Fundamental Changes and Other Changes for more information.

The management fees, operating expenses, insurance fee and applicable taxes are calculated and accrued based on the market value of the Fund’s assets on each Valuation Date and are paid to us monthly.

You do not directly pay for the management fees, insurance fees, operating expenses and applicable taxes as they are paid by the Fund. These fees and applicable taxes will reduce the returns earned by the underlying assets within the Fund.

Subject to the Fundamental Changes and Other Changes provision described in section 14.2, we may change the management fee for any Fund by sending you written notice of the change at least 60 days in advance.

Please see the Fund Facts for the management fee, insurance fee, and maximum insurance fee of each Fund.

11.3 Management expense ratio

The “management expense ratio” (MER) shows the historical, annual cost of investing in a Fund and may vary from year to year. It includes the management fees, operating expenses, insurance fee and applicable taxes paid by the Fund. You do not directly pay the MER as it is paid out of the Fund before the calculation of the Unit Value. Where the Fund invests in an Underlying Fund, there is no duplication of fees for the same service.

The MER is calculated as follows:

MER = 100 x management fee + operating expenses + insurance fee + applicable taxes

average net assets of the Fund during the year

Please see the Fund Facts for more information about Mers.

11.4 Switch Fees, early Withdrawal Fees, early Switch Fees and recovery of expenses

Frequent trading in and out of Funds may have a negative impact on the overall performance of the affected Funds. Such activity is detrimental to all policyholders in the affected Funds. To discourage attempts at market timing, this Contract is subject to switch fees. ivari also reserves the right to charge an early withdrawal fee, an early switch fee or for any expenses or investment losses that occur as a result of an error on your part (e.g. NSF cheque).

11.4.1 Switch Fee

We will deduct a switch fee of 2% of the amount switched for the fifth and subsequent switches in the same calendar year. Please refer to section 5.2 for information on the switch fee.

The switch fee will reduce the Maturity Guaranteed Amount and Death Guaranteed Amount proportionally.

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If your Contract is non-registered, the switch fee will trigger a disposition of the Fund units which is taxable under the Income Tax Act (Canada). For more information, please refer to section 15.2, Taxation of Non-Registered Contracts. If your contract is registered, the switch fee will not be subject to withholding taxes.

ivari reserves the right to change this fee at any time upon 60 days advance notice.

11.4.2 early Withdrawal Fee

We may apply an early withdrawal fee of 2% of the value of Units withdrawn if the unscheduled withdrawal is made within 90 days of allocating those Units to the Fund. This fee does not apply to scheduled withdrawal payments nor to the 10% free withdrawal privilege. ivari reserves the right to change this fee at any time upon 60 days advance notice.

The early withdrawal fee will reduce the Maturity Guaranteed Amount and the Death Guaranteed Amount proportionally.

If your Contract is non-registered, the early switch fee will trigger a disposition of the Fund units which is taxable under the Income Tax Act (Canada). For more information, please refer to section 15.2, Taxation of Non-Registered Contracts. If your contract is registered, the switch fee will not be subject to withholding taxes.

11.4.3 early Switch Fee

We may apply an early switch fee of 2% of the value of Units switched if an unscheduled switch is made within 90 days of allocating those Units to the Fund. This fee does not apply to scheduled switches. ivari reserves the right to change this fee at any time upon 60 days advance notice.

The early switch fee is paid as a withdrawal of Units and will reduce the Maturity Guaranteed Amount and the Death Guaranteed Amount proportionally.

If your Contract is non-registered, the early switch fee will trigger a disposition of the Fund units which is taxable under the Income Tax Act (Canada). For more information, please refer to section 15.2, Taxation of Non-Registered Contracts. If your contract is registered, the switch fee will not be subject to withholding taxes.

11.4.4 recovery of expenses

We reserve the right to charge you for any expenses or investment losses that occur as a result of your (non-sufficient funds) NSF payment when making a Deposit to the Contract. Any charges passed on to you will correspond to any expenses or losses incurred by ivari.

11.4.5 additional Fees

We reserve the right to charge a fee for any administrative service provided under the Contract. We reserve the right to change the amount or the nature of such administrative fees at any time.

12. TerMInaTIon oF THe ConTraCT

This Contract will be terminated and all of our obligations under this Contract will cease upon any one of the following events:

• surrender of all the Units to the Contract’s credit upon your request, and payment to you of the total proceeds of such surrender request, less any fees, sales charges and taxes.

• payment of the Death Benefit.

• on the Contract Maturity Date, subject only to payment to you of the Contract Maturity Benefit or conversion of this Contract to a single life annuity contract.

• subject to any applicable legislative requirements, surrender of all of the Units to the Contract’s credit and payment to you of the Market Value of the Contract, less any fees, sales charges and taxes,

• if at any time the Market Value of the Contract and the Contract Maturity Guaranteed Amount are less than $500, at ivari’s sole discretion upon 30 days notice.

13. CoMPenSaTIon PaId To adVISorS

The Contract is sold through independent Advisors. We compensate the Advisor who solicits the Contract. The amount of compensation depends on the agreement between ivari and the independent Advisor.

We pay sales commission which may vary based on the sales charge option, the Fund and in some cases the amount of Deposit.

Your Advisor also receives service commission for ongoing service.

No compensation is paid for:

• Top-up Benefit paid on the Contract Maturity Date and the Death Benefit Date

• Switches between Funds (i.e. within the same sales charge option)

• Within the same Contract, conversions from a RRSP/LIRA/LRSP/RLSP to the applicable RRIF/LIF/ RLIF/PRIF

14. oTHer IMPorTanT InForMaTIon

14.1 Claims of Creditors

This Contract may be protected from claims of creditors when the beneficiary is the spouse, parent, child or grandchild of the annuitant (in Quebec, the Beneficiary must be married or civil union spouse, the ascendant or descendant of the Owner), or if the Beneficiary is named irrevocably. It is not clear whether creditor protection is available if the Contract is held in a nominee plan.

This information is of a general nature only based on ivari’s understanding of the law at the time of printing. There are important limitations with respect to this protection. Certain facts may void creditor protection. a contract holder is advised to obtain legal advice with respect to his or her personal circumstances.

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14.2 Fundamental Changes and other Changes

We may make certain changes under this Contract that are considered a fundamental change. A fundamental change is defined as:

• an increase in the management fee of a Fund;

• a change in the fundamental investment objectives of a Fund;

• a decrease in the frequency with which Units of a Fund are valued; or

• an increase in the maximum insurance fee of a Fund.

In the case where an ivari Guaranteed Investment Fund invests in an Underlying Fund, we also reserve the right to change such Underlying Fund. If such a change constitutes a Fundamental Change, you will have the rights described in the section immediately below.

In the event of a fundamental change or a Fund Closure, we will give you at least 60 days prior written notice (the “Notice Period”) before making the change. You have the right to: (a) switch to a Similar Fund before the expiry of the Notice Period; or (b) if we do not offer a Similar Fund, withdraw the Units in the Funds affected by the fundamental change without incurring sales charges. We must receive your written response at least 5 days prior to the expiry of the Notice Period.

During the Notice Period, you may not switch to a Fund subject to a Fund Closure, except that you may switch to a Fund subject to other types of Fundamental Changes if you agree to waive the right to surrender without sales charges.

We will also notify the insurance regulators and the Canadian Life and Health Insurance Association Inc. at the same time we notify you of the change (unless such notice is not practical in the circumstances, in which event we will provide notice as soon as possible and as reasonably practical), and amend or re-file the Information Folder to reflect the change. The foregoing may be superseded by any regulatory changes governing individual variable insurance contracts.

A Similar Fund is a Fund that; (a) has a comparable investment objective, (b) is in the same Fund investment category, (c) has the same or lower management fee and insurance fee, and (d) is valued at the same or greater frequency as the Fund subject to the Fundamental Change.

Changing an Underlying Fund will not constitute a Fundamental Change provided that all of the conditions for a Similar Fund continue to apply to the Fund immediately following the change.

A similar Underlying Fund is one that: (a) has a comparable fundamental investment objective (b) is in the same investment fund category and (c) has the same or lower management fee.

The investment objective of the Underlying Funds may not be changed unless approved by the unitholders of the underlying mutual fund. Upon such approval, you will be provided notice of the change.

ivari Guaranteed Investment Funds (GIPs) invest in multiple Underlying Funds. Periodic changes to Underlying Funds or to the target weightings of the ivari Guaranteed Investment Funds will not normally constitute a Fundamental Change. If the change meets the definition of a Fundamental Change, you will have the rights described in the section above.

14.3 limitation of actions

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act, or other applicable provincial legislation.

15. Tax IMPlICaTIonS


This is a general summary of the income tax consideration for individual owners who are Canadian residents. It does not address all possible tax considerations and you should consult your tax advisor to address your personal tax circumstances. The summary is based on the current Income Tax Act (Canada).

Legally, ivari is considered the Owner of the assets of the Funds. However, for tax purposes, each Fund is treated as a trust, separate from ivari. ivari does not pay taxes on income or net gains generated by the Fund. Rather, each Fund will allocate income, capital gains and capital losses to you based on the number of Units allocated to you under the Contract.

You are responsible for the proper reporting and payment of taxes, though ivari may suggest an interpretation of certain features offered under the Contract based on our understanding of current tax legislation. We recommend that you consult your tax advisor regarding the tax treatment of the benefits under this Contract as they apply to your individual circumstances.

We reserve the right to withdraw Units of a Fund or Funds to satisfy your tax liability towards the Canada Revenue Agency and for which ivari is responsible for collecting, e.g. non-resident withholding tax.

15.2 Taxation of non-registered Contracts

Each year, you will be allocated income and capital gains or capital losses realized by a Fund with Units allocated to you.

If you withdraw Units of a Fund due to the death of the Owner or a switch between Funds, you may realize a capital gain or a capital loss.

Sales charges including DSC may be deducted as a capital loss in the year you dispose of your Units.

The withdrawal of Units to pay for the switch fee, early withdrawal fee,early switch fee, and any other fee or administrative charge can result in a capital gain or a capital loss in the year of withdrawal.

Should you become a non-resident of Canada, the withdrawal of Units may be required to satisfy withholding tax liabilities; such a withdrawal may result in a capital gain or capital loss.

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The discontinuance of a Fund and reallocation to another Fund is a disposition for income tax purposes, which can result in a capital gain or a capital loss. The substitution or re-balancing of an Underlying Fund(s) is also considered a disposition for income tax purposes, which can result in a capital gain or a capital loss.

We will send you a tax slip at the end of each year showing the income, capital gains and capital losses for Units of each Fund allocated to you.

15.2.1 Taxation of Contract Maturity Benefit and death Benefit Top-Up

If the Contract Maturity Guaranteed Amount or Death Guaranteed Amount is greater than the Market Value of the Contract on the Contract Maturity Date or Death Benefit Date, as the case may be, we will make up the difference. The difference is called “Top-up Benefit”.

The Top-up Benefit is taxable when it is paid as part of the Contract Maturity Benefit or Death Benefit.

The taxation of the Top-up Benefit of a non-registered contract is not certain at this time. We recommend that you consult your tax advisor to consider the tax treatment of Top-up Benefits in your individual circumstances. Based on our current understanding of the Income Tax Act (Canada), we will report the Top-up as a capital gain.

15.3 Taxation of registered Contracts

Your Contract may be issued as a registered plan under the Income Tax Act (Canada).

In a registered Contract, no tax is payable on investment income and earnings allocated to your Contract or on capital gains realized as a result of a switch of Funds.

15.3.1 rrSP

Deposits made to an RRSP can be deducted on the personal income tax return by the person making the Deposit, up to the maximum permitted under the Income Tax Act (Canada). If you own a spousal RRSP, your spouse who is contributing to your RRSP can make the deduction, subject to allowable limits.

Withdrawals from an RRSP are taxable. We are required to withhold and remit the applicable taxes on the amount withdrawn.

There are no tax consequences on the conversion or transfer from an RRSP Contract to a RRIF Contract or another RRSP Contract.

15.3.2 lIra/lrSP/rlSP

Withdrawals from a LIRA/LRSP/RLSP are taxable. We are required to withhold and remit the applicable taxes on the amount withdrawn.

There are no tax consequences on the conversion or transfer from an LIRA/LRSP/RLSP Contract to another LIRA/LRSP/RLSP Contract or the applicable LIF/RLIF/PRIF Contract.

15.3.3 rrIF/lIF/rlIF/PrIF

If your contract is a RRIF,LIF, RLIF or PRIF, you are required to take the RRIF Minimum Amount as determined by the Income Tax Act (Canada) each calendar year.

Payments and cash withdrawals from a RRIF, LIF, RLIF or PRIF will be included in your income for the year the payments are made.

We are required to withhold taxes at the prescribed rates if you withdraw an amount in excess of the RRIF Minimum Amount. The difference is subject to withholding taxes.

15.3.4 TFSa

Deposits made to a TFSA are not tax deductible. Any unused TFSA contribution room will accumulate and can be carried forward to subsequent years.

Withdrawals are not subject to income tax and will restore your contribution room equal to the withdrawal(s) amount in the following calendar year. If you withdraw and re-contribute in the same taxation year, you may be subject to significant tax penalties imposed by the CRA.

15.3.5 Taxation of Contract Maturity Benefit and death Benefit Top-Up

The Top-up benefit amount that we pay on the Contract Maturity Date or the Death Benefit Date is considered to be part of the market value of the contract. It will be taxable to you, your Beneficiary or your estate unless it is transferred to another registered plan.

16. CUSTodIan

The custodian of the Funds is RBC Dexia Investor Services Trust, 200 Bay Street, North Tower, Toronto, Ontario, M5J 2J5.

17. aUdITor

The auditors of the Funds is Deloitte, Bay Adelaide Centre, East Tower I Suite 200 , 22 Adelaide Street West I Toronto I M5H 0A9.

18. MaTerIal ConTraCTS and MaTerIal FaCTS

In 2008, ivari entered into a contract with RBC Dexia Investor Services Trust for the provision of investment accounting services in respect of the Funds. There are no other materials facts relating to your Contract that have not been otherwise disclosed.

19. InTereST oF ManaGeMenT

No director or officer of ivari has had any material interest in any transactions within 3 years prior to the date of filing of this information folder that would materially affect ivari with respect to the Funds.

20. GloSSarY

For terms used in this folder, please see section 1 of the Annuity Policy, page: 34.

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In this Contract, “you” and “your” mean the Owner of the Contract. “We”, “us” and “our” means ivari.

ivari is the sole issuer of this annuity Contract and the provider of the guarantees under the Contract.

ivariTM

ivari Guaranteed Investment FundsannUITY PolICY


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1. deFInITIonS oF TerMS USed In THe annUITY PolICY and THe InForMaTIon Folder

In the Annuity Policy and Information Folder, the following terms shall have the following meanings:

administrative rules are rules, policies and procedures that we may establish from time to time to administer your Contract. We may change Administrative Rules without notice to you. The Administrative Rules that apply are those in effect at the time of the transaction.

advisor means the independent person, firm, distributor, corporation or other entity duly licensed by the appropriate regulatory authorities to solicit applications for insurance in the applicable jurisdiction, and with whom ivari has a contractual agreement.

annuitant is the measuring life on whom the Contract Maturity Benefit and the Death Benefit is based. For registered plans, you must be the Annuitant; for non-registered plans, you may be the Annuitant or you may designate another person to be the Annuitant.

Beneficiary is the individual or entity you designate to receive the Death Benefit on the death of the last surviving Annuitant.

Business day means a day other than a Saturday, Sunday or statutory holiday in the Province of Ontario, Canada.

Contract consists of the ivari Guaranteed Investment Funds annuity policy, any endorsements or riders incorporated by reference into the annuity policy at the time of its issue, the application once completed and any amendments agreed to by us in writing after the Contract is issued.

Contract Maturity Benefit is the benefit payable or used to calculate an immediate annuity when the Contract matures (the Contract Maturity Date). The benefit is calculated as the greater of the Contract Maturity Guaranteed Amount and the Market Value of the Contract on the Contract Maturity Date.

Contract Maturity date is the date that the Maturity Benefit is calculated. It refers to December 31st of the year in which the last surviving Annuitant turns 100 years of age, or the last Valuation Date of that year if December 31st is not a Valuation Date (except for locked-in plans registered under the laws of Newfoundland and Labrador and New Brunswick).

Contract Maturity Guaranteed amount means the minimum amount that is payable on the maturity of the Contract.

death Benefit is the benefit payable on the Death Benefit Date. The death benefit is calculated as the greater of the Death Guaranteed Amount and the Market Value of the Contract on the Death Benefit Date.

death Benefit date means the Valuation Date we receive satisfactory proof of the death of the last surviving Annuitant in accordance with our Administrative Rules.

death Guaranteed amount means the minimum amount that is payable on the death of the last surviving Annuitant. (See Reset of the Death Guaranteed Amount.)

deferred Sales Charge (dSC) is a sales option where you pay no sales charge to your Advisor at the time of Deposit. You will pay a DSC if you withdraw Units within 6 years of the effective date of the deposit.

deferred Sales Charge Units (dSC Units) means Units allocated to a Fund under the Deferred Sales Charge option.

deposit(s) means the Premium(s) received from you less applicable taxes and sales charges. It does not include the dollar amount of any switches between Funds.

effective date is the date the Contract becomes effective. It is the Valuation Date coinciding with or next following the later of (i) the date we receive the first Deposit to the Contract; and (ii) the date we confirm that the Contract has been set up in accordance with our Administrative Rules.

Fund or Fund(s) means the segregated funds currently available under the ivari GIF Contract.

Guaranteed amount means the minimum amount that is payable at a time specified in the Contract, whether on death, contract maturity or any other stated time defined in the Contract.

Head office means our office at 500 – 5000 Yonge Street, Toronto, Ontario M2N 7J8. If we change our Head Office, we will notify you in writing.

Initial Sales Charge (ISC) means a fee, agreed upon by you, that is paid to your Advisor. The fee is deducted from the amount we receive from you before Units are allocated to your Contract. There is no deferred sales charge when you make a withdrawal against these Units.

Initial Sales Charge Units (ISC Units) means Units allocated to a Fund under the ISC option.

Market Value of the Contract is equal to the sum of [(Unit Value x number of Units) for each Fund you hold in the Contract] at the close of business in a given day if it is a Valuation Date, or if it is not a Valuation Date, the immediately preceding Valuation Date.

owner means the Owner or Owners of the Contract, as named in the application or as changed in accordance with the Contract.

Policy anniversary date means the anniversary of the Effective Date of the Contract.

Premiums are the amounts we receive from you for allocation to the Contract before deducting applicable taxes and sales charges.

reset of the death Guaranteed amount means the transaction that occurs every year, on the Policy Anniversary Date, to lock in market gains, if any, for the Death Guaranteed Amount.

resets are an insured benefit applied or attempted automatically to increase the value of the Death Guaranteed Amount. Where the total market value of the Funds is lower than the then current value of the Death Guaranteed Amount, the Reset is attempted but there is no change to the Death Guaranteed Amount. The application of the Reset to each of these features is described in section 8, Guarantees.

annuity Policy

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rrIF Minimum amount means the minimum amount that is required to be withdrawn from the RRIF or locked-in income Contracts each calendar year under the Income Tax Act (Canada).

Similar Fund means a Fund that has a comparable investment objective, is in the same Fund investment category, has the same or lower management fee, insurance fee and is valued at the same or greater frequency as the comparable Fund. See section 14.1 Fundamental Changes and Other Changes.

Successor annuitant means a person who will become the Annuitant when the primary Annuitant dies and for the purposes of the Contract will be considered the Annuitant. A Successor Annuitant can be designated for RIF Contracts and in that case, only a spouse or common-law partner (as the terms are defined under the Income Tax Act (Canada)) can be designated as a Successor Annuitant. You may appoint a Successor Annuitant only while the Annuitant is living.

Underlying Fund means a mutual fund or other type of Fund that we may select in which a Fund invests from time to time.

Unit Value is determined by dividing the net asset value of a Fund by the number of Units allocated to the Fund on a Valuation Date. The Unit Value of a Fund remains in effect until the next Valuation Date.

Units are a notional measurement to determine your participation interests in a segregated fund.

Valuation date means every day that the principal exchange is open for business, and a value is available for the underlying assets of the Fund. Currently, the principal exchange is the Toronto Stock Exchange. The end of one Valuation Date and the beginning of the next Valuation Date is defined in accordance with our then current Administrative Rules with respect to cut-off times for transactions. For example, a Valuation Date may end at 4 p.m. Any transaction requests received after that time will be deemed received on the next following Valuation Date.

2. THe ConTraCT

2.1 nature of the Contract

The Contract consists of this individual variable annuity policy (the “Annuity Policy”), the application form once completed and accepted by us, endorsements issued with the Annuity Policy and written amendments we agree to after your Contract is issued.

The following information presented in the Fund Facts documents also forms part of the Contract:

• Name of the Contract and the segregated funds

• Management Expense Ratio, fees and expenses

• Risk disclosure

• Right to cancel

The Fund Facts documents are included in the Information Folder and are also available on our website at ivari.ca. The information provided in the Fund Facts is accurate and complies with the

requirements of the Individual Variable Insurance Contract Guideline as of the date the information was prepared. Any error in the Fund Facts information described above will be remedied by correction of the error, where reasonable, but will not entitle you to benefit from the error.

We will not be bound by an amendment made by you or your Advisor unless it is in writing and signed by our President together with one of our Vice-Presidents.

This Contract is available as a non-registered Contract or if you request that your Contract be registered as a Retirement Savings Plan (RSP), a Retirement Income Plan (RIF), a locked-in plan (LIRA, LRSP, RLSP, LIF, PRIF, RLIF) or as a Tax Free Savings Account (TFSA), the RSP, RIF, locked-in plan or TFSA endorsement, as applicable, will be part of the Contract. The terms of the endorsement will override any conflicting provisions of the Contract.

2.2 rescission rights

You may cancel the Contract, any Deposit(s) or any Fund allocation (switch) provided you send us written notice requesting the cancellation within two (2) Business Days of the earlier of (i) the date you receive the transaction confirmation; and, (ii) five (5) Business Days from the date it is mailed by us. You will be deemed to have received the transaction confirmation five (5) Business Days after we have mailed it to you.

On the Valuation Date we receive your request for cancellation of:

(a) the Contract or a Deposit, the value of cancelled Units will be refunded to you.

(b) an allocation between Funds (switch), the value of the cancelled Units will be returned to the immediately preceding Fund allocation.

The value of the cancelled Units will be the lesser of (i) the market value of the Units on the Valuation Date of the Deposit or switch, and (ii) the market value of the Units on the Valuation Date your cancellation request was received by us. Any sales charges or other fees charged to you for the Deposit or switch will be reversed. A cancellation of a Fund switch will include a reversal of any fees resulting from the switch but will not be refunded in cash. A request for cancellation must clearly identify the specific transaction you wish to cancel.

2.3 effective date of the Contract and Policy anniversary date

The Contract takes effect on the Valuation Date coinciding with or next following the later of (i) the date on which we receive your first Deposit; and (ii) the date we confirm that the Contract has been set up in accordance with our Administrative Rules. Delivery of a copy of the Annuity Policy does not constitute acceptance of a Contract. The date the Contract takes effect is called the “Effective Date”.

The Effective Date determines the Policy Anniversary Date.

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2.4 effective Minimum Guaranteed amount

Subject to any applicable legislative requirements, if all the Guaranteed Amounts, including the Death Guaranteed Amount and the Contract Maturity Guaranteed Amount are less than $500, we reserve the right to terminate the Contract upon 30 days’ notice and forward to you the Market Value of the Contract, minus any applicable charges, fees and taxes.

2.5 number of Contracts allowed

We have the right to limit the number of Contracts with the same Annuitant or Successor Annuitant by declining subsequent applications.

2.6 Contract amendment

We reserve the right to amend the Contract at any time if legislation or regulation which affects the terms of the Contract is changed. We will inform you of changes to the Contract resulting from legislative or regulatory amendment along with regular communications sent to you.

2.7 administrative rules

We adopt Administrative Rules for the consistent administration of all Contracts. The Administrative Rules are those in effect at the time the transaction is processed and may change from time to time, without notice to reflect corporate policy, economic and legislative changes. As these Administrative Rules change, it may affect the administration of your Contract.

3. General ProVISIonS

3.1 owner

As Owner, you are entitled to all rights granted under the Contract, subject to any limits imposed by law. The Owner must be a Canadian resident at the time the Contract is issued.

Your rights may be limited if you have designated an irrevocable Beneficiary or if you have assigned or hypothecated the Contract.

3.2 Successor owner

You may designate a successor Owner to assume ownership of the Contract upon your death. If you are also the Annuitant, ownership will not pass to the successor Owner unless you have also designated a Successor Annuitant. Upon your death, the Death Benefit will become payable and the Contract will end, unless you have designated a Successor Annuitant and the Successor Annuitant does not predecease you.

In the Province of Quebec, the successor Owner is called a “subrogated policyholder”.

3.3 Joint owners

You may along with another person hold the Contract in joint ownership. The type of joint ownership available for this Contract is by “Joint Tenancy with Right of Survivorship”. Under this type of ownership, each joint Owner holds an undivided interest in the entire Contract. On the death of one Owner, who is not the Annuitant or if

you have designated a Successor Annuitant, the surviving Owner will become the sole Owner. While both of the joint Owners are living, the consent and instruction of both joint Owners is required to effect any changes or transactions made within the Contract.

This form of ownership is not available in Quebec.

3.4 annuitant

The Annuitant is the person on whose age and life the Contract Maturity Benefit is measured and on whose death the Death Benefit is payable.

The Annuitant must be a Canadian resident at the time the Contract is issued.

Upon request and subject to our consent, you may change a previously designated Annuitant for a non-registered Contract, except for a TFSA Contract. Before consenting to the change, we may request information, including acceptable medical evidence of the new Annuitant’s health. We may refuse consent if the medical evidence is not satisfactory or is incomplete. Following a change of Annuitant, the Contract Maturity Date and the determination of the latest age for deposit will be based on the new Annuitant’s age.

3.5 Successor annuitant

You may, during the Annuitant’s lifetime, appoint a Successor Annuitant to replace the deceased Annuitant for a non-registered Contract and a Contract registered as a RIF. For a TFSA Contract or a Contract registered as a RIF, the Successor Annuitant must be your spouse or common-law partner, as defined in the Income Tax Act (Canada).

You may also, during the Annuitant’s lifetime, remove a previously made Successor Annuitant designation.

If you have designated a Successor Annuitant under the Contract who is still alive on the death of the Annuitant, no Death Benefit is payable until the death of the last surviving Annuitant.

3.6 Beneficiary

The Beneficiary is the person you designate to receive the Death Benefit after the death of the last surviving Annuitant. You may change or revoke the Beneficiary in accordance with the law applicable to this Contract. If you have designated the Beneficiary as irrevocable, you may not change or revoke the designation without the Beneficiary’s consent.

Any appointment of a Beneficiary, or any change or revocation of an appointment, must be made in writing and will be effective when recorded by us. We are not bound by a designation, change or revocation, which has not been received and recorded by us at the date we make a payment or take any action. We assume no responsibility for the validity or effect of any appointment, change or revocation.

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If there is no surviving Beneficiary at the time of the last surviving Annuitant’s death, the Death Benefit will be paid to you if you are not the Annuitant, otherwise to your estate. If you have designated a Successor Owner, the benefit will be payable to the Successor Owner in this case. Special rules apply to Contracts held in nominee name.

4. Plan TYPeS aVaIlaBle

This Contract may be non-registered or registered for Canadian tax purposes. Please see section 4.2 for the registered plans available under this Contract.

4.1 non-registered Contracts (other than TFSa Contracts)

The Owner of a non-registered Contract may be an individual, a corporation or any type of ownership permitted under the laws governing your Contract and our Administrative Rules. You may be the Annuitant or designate another person as Annuitant.

You may be able to transfer ownership of a non-registered Contract. A transfer of ownership must be made in accordance with the laws applicable to your Contract and our Administrative Rules.

You cannot borrow money directly from a non-registered Contract; however, a non-registered Contract may be assigned as security for a loan to the lender. If you assign your Contract to the lender, the rights of the lender may take precedence over the rights of any other person having a claim over the Contract. An assignment of this Contract may restrict or delay certain transactions.

4.2 registered Contracts and TFSa Contracts

Under a registered or TFSA Contract, you are both the Owner and Annuitant.

The Registered Plans available under this Contract are: Registered Retirement Savings Plan (RRSP), Spousal RRSP, Registered Retirement Income Fund (RRIF), and Spousal RRIF. This Contract can also be registered as a Locked-in savings plan, such as Locked-in Retirement Account (LIRA) (also called Locked-in Retirement Savings Plan), Restricted Locked-in Savings Plan (RLSP) and as a locked-in income plan, such as a Life Income Fund (LIF), Prescribed Retirement Income Fund (PRIF) and Restricted Life Income Fund (RLIF). This Contract is also available as a Tax Free Saving Account (TFSA).

You cannot borrow money directly from a registered Contract and you cannot use a registered Contract as security for a loan.

If the Contract is registered as an RSP, Deposits can be made until December 31st of the year the Annuitant turns 71 or the latest age to hold an RRSP under the Income Tax Act (Canada), at which time the RRSP must be converted into a RRIF, an immediate annuity or taken as a cash withdrawal.

If the Contract is registered as a locked-in savings plan, you may make Deposits into the plan until December 31st of the year the Annuitant turns 71 or the latest age to hold locked-in savings plan under the Income Tax Act (Canada), at which time it must be converted into a locked-in income plan.

For a registered or TFSA Contract, you do not pay taxes on earnings as long as they remain inside the plan.

Unless you indicate otherwise, we will automatically change the registration status as follows from:

• an RRSP to a RRIF;

• a LIRA or LRSP to a LIF;

• a LIRA governed by the laws of Saskatchewan to a PRIF; or

• a LIRA governed by the laws of Manitoba to a PRIF; and

• a RLSP to a RLIF

The Contract Maturity Date remains at December 31st of the year the last surviving Annuitant turns 100; age 80 for locked-in plans registered under the laws of Newfoundland and Labrador; age 90 for locked-in plans registered under the laws of New Brunswick. All terms related to registered plans and TFSA contracts are subject to change as required by the laws of the applicable jurisdiction.

5. dePoSITS

5.1 Making deposits

While this Contract is in force, you may make Deposits in accordance with our Administrative Rules until the latest age to make a Deposit. The latest age to make a Deposit varies based on the plan type of the Contract and is set out below:

Plan Type latest age to Maket a deposit

Non-registered, RRIF, Spousal RRIF, LIF, RLIF, PRIF, TFSA

The day before the Annuitant turns 76.

RRSP, Spousal RRSP, LIRA, LRSP, RLSP, Newfoundland and Labrador LIF

December 31st of the year the Annuitant turns 71.*

* Or the latest age to hold an RRSP under the Income Tax Act (Canada), except that it cannot exceed the day before the Annuitant’s age 76.

There are minimum Deposit requirements for this Contract. The minimum initial Deposit required to issue your Contract is $500. Our Administrative Rules also provide minimum amounts for subsequent deposits and Fund allocations. These minimum amounts may vary depending on the deposit method you choose, for example Pre-Authorized Chequing (PAC) or payment by cheque.

A Deposit in excess of $2 million requires prior approval.

All payments must be made in the lawful currency of Canada.

If your payment comes back to us marked NSF (Not Sufficient Funds), we reserve the right under our Administrative Rules to charge a fee to cover our expenses. Please see section 12.5, Recovery of Expenses.

The Valuation Date for your Deposit is as set out in section 10.2, Valuation Date.

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5.2 deposits by Scheduled Pre-authorized Chequing Plan

You may establish a pre-authorized chequing (PAC) plan to make deposits on a scheduled basis.

The pre-authorized chequing plans are available for non-registered, TFSA and RRSP Contracts. They are not available for Contracts registered as a RIF and locked-in income plans.

We have the right to cancel the PAC at any time, upon 10 days’ notice to you.

If we discontinue a Fund or close a Fund to new Deposits, we have the right to direct the PAC to another Fund.

Subject to our Administrative Rules, we will stop processing deposits by PAC if they are returned unprocessed. You will be required to notify us in writing to re-establish deposits to the Contract by PAC. Please see the application for terms and conditions applicable to PAC.

5.3 deposits under different Sales Charge options

You may elect to make a Deposit under the Initial Sales Charge (ISC) or the Deferred Sales Charge (DSC).

If the ISC option applies, a sales charge will be deducted from the Premium before Units are allocated to the Contract. The remaining amount is the Deposit. The Deposit will be divided by the Unit Value of the Fund effective on the Valuation Date of the Deposit to determine the number of the applicable Units of each Fund to be allocated to the Contract. There is no sales charge when you make a withdrawal against Units allocated under the ISC option.

If the DSC option applies, the Premium will be divided by the Unit Value of each Fund selected, effective on the Valuation Date of the Deposit to determine the number of Units of each Fund to be allocated to the Contract. Under this option, a sales charge will be deducted from all withdrawals made within the first 6 years of the Effective Date of the Contract, except for withdrawals made in accordance with your 10% free withdrawal right.

5.4 General Provisions relating to deposits

In accordance with our Administrative Rules, we may

• refuse to accept Deposits

• limit the amount of Deposits allocated to a Fund

• refund Deposits within the previous 90 days


6. FUnd SWITCHeS

6.1 Making Switches

While this Contract is in force, you may, subject to our Administrative Rules, request in writing that we switch money between Funds of the same sales charge option and within the same Contract.

Switches can be made on a scheduled or an unscheduled basis. No sales charges apply to switches. Fund switches between different Contracts are not permitted.

Switches are subject to minimum switch requirements. The current minimum switch amount is $100 with a minimum of $25 per Fund. This minimum amount is set in accordance with our Administrative Rules.

The Contract Maturity Guaranteed Amount and Death Guaranteed Amount are not impacted by a switch.

When you switch between Funds, it is your oldest Units that are switched first.

The Valuation Date for a switch is as set out in section 10.2, Valuation Date.

A switch in a non-registered Contract is a taxable transaction.

6.2 Moving Money Between Sales Charge options

Moving money between Funds of different sales charges is a withdrawal from the Contract and a subsequent Deposit back into the Contract, not a switch. This transaction may trigger sales charges. A withdrawal will impact both the Contract Maturity Guaranteed Amount and Death Guaranteed Amount. This transaction is also a taxable event in a non-registered contract, except a TFSA contract. As this transaction is a new Deposit, it is subject to the latest age for deposit rule.

Please be mindful of moving between Funds of different sales charges and discuss with your advisor its impact on sales charges, the Contract Maturity Guaranteed amount and the death Guaranteed amount. Please see section 8.1, Contract Maturity Benefit; section 8.2, death Benefit; section 5.1, Making deposits.

6.3 Unscheduled Fund Switches and Switch Fees

You may request a Fund switch at any time.

We will deduct a switch fee of 2% of the amount switched for each unscheduled switch you request in excess of 4 in a calendar year. Switches made in a single day count as one switch. You may not carry forward any unused switches from one calendar year to the next.

We reserve the right to charge an early switch fee of 2% of the value of Units switched if you make a switch within 90 days of allocating those Units to the Fund.

The switch fee and the early switch fee will proportionally reduce the Contract Maturity Guaranteed amount and death Guaranteed amount.

ivari reserves the right to change the switch fee and the early switch fee at any time upon 60 days advance notice.

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6.4 Scheduled Fund Switches (dollar Cost averaging)

You may request to have scheduled switches for your Contract subject to the minimum amounts that apply to scheduled Fund switches. Scheduled Fund switches are commonly referred to as a “Dollar Cost Averaging” (DCA) service.

No switch fees and early switch fees apply to scheduled Fund switches.

We reserve the right to cancel the scheduled Fund switches at any time or direct the scheduled Fund switches to a Similar Fund, according to our then current Administrative Rules.

6.5 General Provisions relating to Switches

We reserve the right to delay switches in unusual or exceptional circumstances where it is not practical to dispose of investments made in a Fund or where it would be unfair to other Owners.

We have the right to refuse any Fund switch request; limit the amount switched to any particular Fund(s), and impose additional conditions at our discretion before any Fund switches are made.

Any switch and switch fee charged, other than within a registered plan or TFSA, are a taxable transaction.

The value of Units of a Fund that is withdrawn to effect the switch is not guaranteed and may increase or decrease in value.

7. WITHdraWalS

7.1 Making Withdrawals

While this Contract is in force, you may request in writing a withdrawal of Units from one or more Funds in accordance with our Administrative Rules.

Withdrawals must meet the minimum withdrawal requirements that we have in place at the time of the request for withdrawal. The current minimum withdrawal amount is $100 with a minimum of $25 per Fund. The minimum withdrawal amount is calculated before deferred sales charges, fees and taxes are deducted.

Units are withdrawn from the Fund or Funds in the order the Units were allocated to a Fund, first in, first out, withdrawing the oldest Units first.

Withdrawals will reduce both the Contract Maturity Guaranteed amount and the death Guaranteed amount on a proportional basis. Please see section 8.1, Contract Maturity Benefit; section 8.2, Death Benefit.

The Valuation Date for a withdrawal is as set out in section 10.2, Valuation Date.

A withdrawal creates a taxable disposition, resulting in either a capital gain or a capital loss.

If on the date a withdrawal is requested the value of the Fund is insufficient to permit us to make the requested withdrawal, we will proceed as follows:

• In the case of an unscheduled withdrawal, the withdrawal will not be processed and we will request further instructions from you.

• In the case of a scheduled withdrawal, the withdrawal will still be processed based on our current administrative practices.

7.2 Withdrawal options

Withdrawals can be made on a scheduled or an unscheduled basis.

Scheduled payment options, also known as Systematic Withdrawal Plans or “SWPs”, are only available for non-registered and RRIF Contracts. For scheduled options relating to RRIF Contracts, you may elect to withdraw the RIF Minimum Amount or payment on a custom basis as you may determine.

The scheduled payment option and payment frequency you select will remain in effect until you instruct us in writing to change it. The change will affect future payments only.

Unscheduled options may be customized in the amount and frequency at your discretion, subject to legislated minimum withdrawal amounts and to a maximum annual amount for certain locked-in income plans.

7.3 Withdrawals from rrIF and locked-in Income Contracts

For Contracts registered as a RIF or a locked-in income plan (such as LIF, PRIF, RLIF), the Income Tax Act (Canada) requires that starting in the second calendar year after the Contract is issued and every calendar year thereafter, you must receive an amount from the Contract. We refer to this amount as the “RRIF Minimum Amount”.

The RRIF Minimum Amount is calculated by multiplying the closing Market Value of the Contract on December 31st of the previous year (or the last Valuation Date if December 31st is not a Valuation Date) by the percentage determined under the Income Tax Act (Canada).

Where legislation permits, you can elect to have the RRIF minimum percentage based on your spouse’s or common-law partner’s age (as the terms are defined in the Income Tax Act (Canada)). You must make this election at the time you enter into the Contract and once made, it cannot be changed while the Contract is in force.

If the total of your scheduled and unscheduled withdrawals in the calendar year is less than the RRIF Minimum Amount for that year, we are required to make a year-end payment to you to meet the RRIF Minimum Amount. Year-end payments will be applied using the scheduled withdrawal allocation we have on file, or if there are no allocations on file, using the default allocation subject to our Administrative Rules.

You may elect to customize your RRIF, LIF, PRIF, RLIF payments and withdraw an amount greater than your RRIF Minimum Amount.

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For a LIF and a RLIF, the withdrawal amount cannot exceed the annual maximum amount prescribed by governing legislation. There is no withdrawal limit on a contract registered as a PRIF.

We are required to withhold taxes from any payment in excess of the RRIF Minimum Amount.

7.4 early Withdrawal Fees

We reserve the right to apply an early withdrawal fee of 2% of the value of Units withdrawn if the withdrawal is made within 90 days of the Deposit. This fee does not apply to scheduled withdrawal payments and to the 10% free withdrawal right. This fee is in addition to any applicable DSC. ivari reserves the right to change this fee at any time upon 60 days advance notice.

The Contract Maturity Guaranteed Amount and Death Guaranteed Amount will be proportionally reduced by the early withdrawal fees.

7.5 General Provisions relating to Withdrawals

We have the right to delay the Valuation Date of a withdrawal to up to seven Business Days in order to properly process the withdrawal.

In the event of exceptional or unusual circumstances, we have the right to delay payment of any withdrawal amount for the duration of the exceptional or unusual circumstances.

The value of the Units of a Fund that are withdrawn is not guaranteed and may increase or decrease in value.

8. GUaranTeeS

This Contract provides for a Contract Maturity Benefit and a Death Benefit.

8.1 Contract Maturity Benefit

Under this guarantee, on the Contract Maturity Date, you are entitled to the Contract Maturity Benefit, which is the greater of the:

(i) Contract Maturity Guaranteed Amount, and


The Contract Maturity Date is as follows for the Contract plan types available.

Plan Type Contract Maturity date

Non-registered, RRSP, LIRA, LRSP, RLSP, RIF, LIF, PRIF, RLIF and TFSA


New Brunswick LIRA and LIF December 31st of the year in which the last surviving Annuitant turns age 90

Newfoundland and Labrador LIRA and LIF


If, on the Contract Maturity Date, the Market Value is less than the Contract Maturity Guaranteed Amount, the difference plus the Market Value of the Contract on the Contract Maturity Date is the Contract Maturity Benefit. We refer to the difference as the top-up benefit.

8.1.1 Calculation of the Contract Maturity Guaranteed amount

The Contract Maturity Guaranteed Amount is the sum of 75% of all Deposits made into the Contract, less a proportional market value reduction for withdrawals. Withdrawals include client-initiated transaction fees. Please see section 8.2.3, Impact of Withdrawals on the Contract Maturity Guaranteed Amount and Death Guaranteed Amount.

If your Deposit is made under the Initial Sales Charge option, we will add the Initial Sales Charge back to the Deposit when calculating the Contract Maturity Guaranteed Amount. Therefore, the Contract Maturity Guaranteed Amount will not be less than 75% of Premiums minus proportional market value reductions for withdrawals and fees.

8.1.2 Payment of Contract Maturity Benefit and default annuity

If the Annuitant is living on the Contract Maturity Date and we are not notified of your maturity instructions, the Contract Maturity Benefit amount will be applied to provide you with a single life immediate annuity based on your life, guaranteed for ten years in accordance with applicable legislation and our administrative rules. The annuity will be issued based on the rates in effect on the Contract Maturity Date, payable monthly.

Payment of the annuity or the lump sum if the minimum amount for the issue of an immediate annuity is not met discharges ivari of all obligations under this Contract.

8.1.3 default annuity for Contracts Issued in quebec only

For Contracts issued in Quebec, the annuity will be based on your life, be payable monthly and will be based on the rates in effect on the Contract Maturity Date. However, the annual annuity payment for each $1,000 being annuitized with a maximum guarantee period of ten years shall not be lower than the amount set out in Table 1 for the applicable age on which the annuity is based.

The applicable age on which the annuity is based is the age of the Annuitant in the case of a single life annuity.

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Table 1 – annual annuity Payment per $1,000

age of annuitant annuity Payment

50 $15.39

55 $16.67

60 $18.19

65 $20.01

70 $22.23

75 $25.01

80 $28.58

85 $33.34

90 $40.01

95 $50.01

100 $66.67

We reserve the right to pay the Contract Maturity Benefit in a lump sum if the monthly annuity payment is less than $50.

Payment of the annuity, or the lump sum if the minimum amount for the issue of an immediate annuity is not met, discharges ivari of all obligations under this Contract.

8.2 death Benefit

Under this guarantee, on the Valuation Date we receive satisfactory proof of the death of the last surviving Annuitant in accordance with our Administrative Rules (the “Death Benefit Date”), the Death Benefit will be calculated. The Death Benefit on the Death Benefit Date is the greater of the:

(i) Death Guaranteed Amount; and


If the Market Value on the Death Benefit Date is less than the Death Guaranteed Amount, the difference plus the Market Value of the Contract on the Death Benefit Date is payable to the person entitled to the Death Benefit. We refer to the difference as the top-up benefit. The Top-up Benefit, if applicable, will be payable as part of the Death Benefit.

No Deferred Sales Charge applies to the Death Benefit.

Payment of the Death Benefit will discharge our obligations under this Contract.

8.2.1 Calculation and reset of the death Guaranteed amount

The Death Guaranteed Amount is the sum of 100% of all Deposits made into the Contract, less a proportional market value reduction for withdrawals. Withdrawals include client-initiated transaction fees. Please see section 8.2.3, Impact of Withdrawals on the Contract Maturity Guaranteed Amount and Death Guaranteed Amount.

The Death Guaranteed Amount has the potential to increase by Resets.

Every year, on the Policy Anniversary Date, if the Market Value of the Contract is greater than the Death Guaranteed Amount, we will automatically reset the Death Guaranteed Amount to equal the Market Value of the Contract.

As long as the Annuitant is living, the last Reset of the Death Guaranteed Amount will be exercised on the Policy Anniversary Date of the year the Annuitant turns 75.

We reserve the right to change or discontinue the reset feature upon 60 days prior written notice.

8.2.2 Process for determining the death Benefit

If there is a delay between the receipt of satisfactory proof of death (for example death certificate) and notice of death of the Annuitant (for example letter from next of kin), we will, on notice of death, switch all Units in the Funds allocated to the Contract to the Money Market Fund or to another Fund we designate if the Money Market Fund is not available. This date is called the “Notice Date”.

As of the Notice Date, no further transactions can be made. For example, scheduled withdrawals, including payments of RRIF Minimum Amounts will be stopped. Subsequently, on the Valuation Date we receive proof of death (the “Death Benefit Date”); the Death Benefit will be calculated.

8.2.3 Impact of Withdrawals on the Contract Maturity Guaranteed amount and death Guaranteed amount

The Contract Maturity Guaranteed Amount and Death Guaranteed Amount will be reduced proportionally by withdrawals. Withdrawals include client-initiated transaction fees.

To determine the Contract Maturity Guaranteed Amount or the Death Guaranteed Amount after a withdrawal, the formula is as follows: (a – P)

Where a is the Contract Maturity Guaranteed Amount/Death Guaranteed Amount before the Withdrawal

P is the proportional market value reduction of the Withdrawal

P is determined as a x (B/C) where:


C is the Market Value of the Contract before the withdrawal.

Please consider that, when the market value of the Units withdrawn is lower than the market value of those Units on the deposit date, the proportional reduction due to the withdrawal will reduce the Contract Maturity Guaranteed amount and death Guaranteed amount by more than the amount of the withdrawal.

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9. InVeSTMenT oPTIonS

This Contract gives you access to a selection of Funds.

You do not acquire any ownership interest in the Funds or in the underlying investments when you make Deposits to the Contract.

We may close, add, merge or split Funds available within the Contract.

If we close, merge or split (“discontinue”) a Fund, we will automatically withdraw the Units in the discontinued Fund and reallocate the value of the Units of the discontinued Fund to another Fund of our choice. This transaction may be a taxable event and subject to the Fundamental Change rule. Please see section 14.1, Fundamental Changes and Other Changes.

We may also change the investment objective of a Fund. A change to the investment objective is considered a fundamental change. Please see section 14.1, Fundamental Changes and Other Changes.

We may also substitute an Underlying Fund(s) for a substantially similar Underlying Fund(s) or other investments for any of the Funds available within the Contract.

We have the right to change the portfolio manager of any Fund, at any time, at our discretion. The portfolio manager is the person (or team of people) who is directly responsible for the investment decisions of any Fund or Underlying Fund.

10. ValUaTIon

10.1 net asset Value and Unit Value

On each Valuation Date, we calculate the net asset value for Units of each Fund. The net asset value is the total market value of the Fund’s assets minus any applicable liabilities, on that date.

On each Valuation Date, we determine the Unit Value of a Fund. The Unit Value of a Fund is calculated by dividing the net asset value of a Fund by the number of Units allocated to the Fund on that Valuation Date. The Unit Value of a Fund remains in effect until the next Valuation Date.

All earnings of a Fund are automatically reinvested in the Fund and this will be reflected in the Unit Value of the Fund. We reserve the right to change this method of reinvesting a Fund’s earnings following written notice to policyholders.

We reserve the right to increase the number of Units of a Fund by splitting a Unit into two or more Units, or decrease the number of Units by combining two or more Units. However, the market value of the Funds in your Contract will not be affected by this activity.

The net asset value and Unit Value of a Fund are not guaranteed but may increase or decrease in value.

10.2 Valuation date

A Valuation Date occurs every day that the principal exchange is open for business and a value is available for the underlying assets of the Fund. Currently, the principal exchange is the Toronto Stock Exchange. We may change the principal exchange to another exchange.

All transactions (e.g. Deposits, withdrawals, transfers) are processed based on the market value as at the close of business on the Valuation Date provided we receive at our Head Office, the instructions or transactions in accordance with our Administrative Rules by the Valuation Date cut-off time, that we determine acceptable. If the instructions or transactions are received after the cut-off time, they will be considered to be received on the next Valuation Date. We reserve the right to change the Valuation Date cut-off time (earlier or later).

ivari reserves the right to reduce the frequency with which the Unit Value of a Fund is calculated, subject to a minimum frequency of once a month. If such an event occurs, you have certain rights. Please see section 14.1, Fundamental Changes and Other Changes.

We may postpone valuation:

(i) for any period during which one or more of the nationally recognized stock exchanges are closed for other than a customary weekend or holiday closing,

(ii) for a period during which trading on securities exchanges is restricted, or

(iii) when there is an emergency during which it is not reasonable for us to dispose of investments owned by the Funds or to acquire investments on behalf of the Funds or to determine the total value of the Funds.

10.3 Market Value of the Contract

The Market Value of your Contract on any given Valuation Date is determined according to the following formula:

Market Value of your Contract = sum of [(Unit Value x number of Units) for each Fund you hold in the Contract]

11. SaleS CHarGe oPTIonS

You may request to allocate your Deposit under the initial sales charge (ISC) or the deferred sales charge (DSC) option.

The amount of sales charges is determined by the Fund category and sales charge option under which Units are allocated to your Contract.

We may change, add or delete sales charge options from time to time.

11.1 Initial Sales Charge option

With this option, you negotiate the sales charge with your Advisor. The negotiated sales charge is between 0% and 5% of your Premium. The negotiated sales charge will be deducted from the Premium to determine the Deposit. There is no deferred sales charge when you make a withdrawal against these Units. Units allocated to your Contract under this option are called ISC Units.

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11.2 deferred Sales Charge option

With this option, you pay no sales charge to your Advisor at the time of Deposit. Instead, you agree to pay a Deferred Sales Charge to us if you request a withdrawal within six years of the effective date of each Deposit. Units allocated to your Contract under this option are called DSC Units.

The DSC is charged as a percentage of the market value as of the Deposit date of the DSC Units withdrawn. The percentage charged varies based on the time that has passed since the effective date of Deposit. The DSC schedule is as follows:

When the Units are

withdrawn:dSC

(as a percentage of the market value of DSC Units as of the Deposit date)

During the 1st year after Deposit 6.0%

During the 2nd year after Deposit 5.0%

During the 3rd year after Deposit 4.0%





This Deferred Sales Charge schedule is subject to change and any new Deposits made after the change will be subject to the new Deferred Sales Charge schedule.

Units are withdrawn from the Fund or Funds in the order the Units were allocated to a Fund - first in, first out, withdrawing the oldest Units first.

11.3 10% Free Withdrawal right for dSC Units

Each calendar year, you are entitled to withdraw up to 10% of the number of DSC Units allocated to a Fund without paying DSC.

Any unused portion of the right may not be carried forward from one year to the next. We reserve the right to discontinue or change this right at any time.

The number of DSC Units that may be withdrawn from a Fund each year is the sum of the following:

(i) 10% of the number of DSC Units that were allocated to the Fund at the end of the previous calendar year, and

(ii) 10% of DSC Units allocated to the Fund in the current year, prorated by the number of days the Units have been allocated in the current year (not including the day of allocation) (In prorating, we divide by 366 for leap years and by 365 for non-leap years); less

(iii) any DSC Units withdrawn from the Fund in the current year under this right.

11.4 Movement between Sales Charge options

While the Contract is in force, you may request that Funds that you hold under one sales charge option be moved to a Fund of another sales charge option. Moving money between Funds of different sales charges is not a switch and is processed as a withdrawal from the Contract and a subsequent Deposit into the Contract. This transaction will trigger sales charges and impact the Contract Guaranteed amount and the death Guaranteed amount and is subject to the latest age to deposit rule. Please see section 8.1, Contract Maturity Benefit; section 8.2, Death Benefit, section 5.1, Making Deposits.

The withdrawal of Units to effect the movement between Funds of different sales options is not guaranteed and is subject to market fluctuations.

12. FeeS

The Contract is subject to the following fees: management fees, insurance fees and in certain circumstances, switch fees. We reserve the right to charge an early withdrawal fee and an early switch fee to discourage activity that may be detrimental to the Fund and all policyholders. We also reserve the right to recover expenses that we incur as a result of your action, including the right to charge a fee for any administrative service provided with respect to the Contract. We reserve the right to change the amount or the nature of such administrative fees at any time. Certain fees are subject to applicable taxes.

12.1 Management Fees and operating expenses

Each Fund pays us a management fee for the management of the Fund, which includes the cost of investment management, services and facilities to support the Fund, commissions and service fees payable to Advisors.

Where the Fund invests in an Underlying Fund, there is no duplication of management fees for the same service, and the management fee and MER of the Fund includes the management fee and MER of the Underlying Fund.

Each Fund also pays its own operating expenses. They include, among other things, audit, accounting and financial reporting and disclosure costs; custodial and trustee costs; legal and regulatory costs; bank service fees and interest charges; policyholder communication fees and related administrative costs; and applicable taxes.

The management fees and operating expenses are calculated and accrued based on the market value of the Fund’s assets on each Valuation Date and are paid to us monthly.

Subject to the Fundamental Changes and Other Changes provision described in section 14.1, we may change the management fee of a Fund by sending you written notice of the change at least 60 days in advance.

44

12.2 Insurance Fees

Each Fund pays us an insurance fee for the cost of providing the insurance benefits under the Contract. The insurance benefits of the Contract are the Contract Maturity Benefit, Death Benefit and Resets of the Death Guaranteed Amount.

Depending on the risk level and volatility of the Fund, each Fund will be assigned, at our discretion, an insurance fee. The more risk and volatility associated with a Fund, the higher the insurance fee. We may change the insurance fee, up to the maximum insurance fee, without prior notice. If the increase is beyond the maximum insurance fee, we will provide you with at least 60 days’ advance notice and you will have the rights outlined under the Fundamental Change Rule. Please see section 14.1, Fundamental Changes and Other Changes for more information.

Please see appendix d for the management fee, insurance fee and maximum insurance fee of each Fund.

12.3 Management expense ratio

The “management expense ratio” (MER) shows the historical, annual cost of investing in a Fund and may vary from year to year. It includes the management fees, insurance fees, operating expenses and applicable taxes paid by the Fund. The MER is paid out of the Fund before the calculation of the Unit Value. Where the Fund invests in an Underlying Fund(s), there is no duplication of fees for the same service.

The MER is calculated as follows:

MER = 100 x management fee + operating expenses + insurance fee + applicable taxes

average net assets of the Fund during the year

The management fees, insurance fee and operating expenses are calculated and accrued based on the market value of the Fund’s assets on each Valuation Date and are paid to us monthly.

You do not directly pay for the management fees, insurance fees, operating expenses and applicable taxes as they are paid by the Fund. These fees and applicable taxes will reduce the returns earned by the underlying assets within the Fund.

12.4 Switch Fees, early Switch Fees, early Withdrawal Fees and recovery of expenses

12.4.1 Switch Fees

The Contract is subject to a switch fee of 2% of the amount switched for the fifth and subsequent switches in the same calendar year. Please see section 6.3, Unscheduled Fund Switches and Switch Fees.

12.4.2 early Switch Fee

The Contract may be subject to an early switch fee of 2% of the value of Units switched if a switch is made within 90 days of allocating those Units to the Fund. This fee does not apply to scheduled switches.

12.4.3 early Withdrawal Fee

The Contract may be subject to an early withdrawal fee of 2% of the value of Units withdrawn if a withdrawal is made within 90 days of the Deposit. This fee does not apply to scheduled withdrawal payments and to the 10% free withdrawal right.

12.4.4 General Provisions relating to Switch Fees, early Switch Fee and early Withdrawal Fee

We reserve the right to change the switch fee, early switch fee and early withdrawal fee at any time upon 60 days advance notice.

The switch fee, early switch fee and early withdrawal fee will each reduce the Contract Maturity Guaranteed Amount and Death Guaranteed Amount proportionally.

The switch fee, early switch fee and early withdrawal fee will, in non-registered Contracts (other than a TFSA contract), be considered a disposition under the Income Tax Act (Canada) and will be taxable.

The withdrawal of units under the Contract to pay the switch fee, early switch fee and early withdrawal fee will not be subject to withholding tax in a registered contract.

12.5 recovery of expenses

We reserve the right to charge you for any expenses or investment losses that occur as a result of your action or inaction, including writing a (not-sufficient funds) NSF cheque when making a Deposit to the Contract. Any charges passed on to you will correspond to any expenses or losses incurred by ivari.

13. TerMInaTIon oF THe ConTraCT

This Contract will be terminated and all of our obligations under this Contract will cease upon any one of the following events:

• surrender of all the Units to the Contract’s credit upon your request, and payment to you of the total proceeds of such surrender request, less any fees, sales charges and taxes.

• payment of the Death Benefit.

• on the Contract Maturity Date, subject only to payment to you of the Contract Maturity Benefit or conversion of this Contract to a single life annuity contract.

• Surrender of all of the Units to the Contract’s credit and payment to you of the Market Value of the Contract, less any fees, sales charges and taxes, at any time the Market Value of the Contract and the Contract Maturity Guaranteed Amount are less than $500, at ivari’s sole discretion upon 30 days notice.

All subject to any applicable legislative requirements.

45

14. General TerMS

14.1 Fundamental Changes and other Changes

We may make certain changes under this Contract that are considered a fundamental change. A fundamental change is defined as:

• an increase in the management fee of a Fund;

• a change in the fundamental investment objectives of a Fund;

• a decrease in the frequency with which Units of a Fund are valued; or

• an increase in the maximum insurance fee of a Fund.

In the case where an ivari Guaranteed Investment Fund invests in an Underlying Fund, we also reserve the right to change such Underlying Fund. If such a change constitutes a fundamental change, you will have the rights described in the section immediately below.

In the event of a fundamental change or a fund closure, we will give you at least 60 days prior written notice (the “Notice Period”) and you will have the right to: (a) switch to another Similar Fund before the expiry of the notice period; or (b) if we do not offer a Similar Fund, withdraw the Units in the Funds affected by the fundamental change without incurring sales charges. We must receive your written response at least 5 days prior to the expiry of the notice period.

During the notice period, you may not switch to a Fund subject to a fund closure, except that you may switch to a Fund subject to other types of fundamental changes if you agree to waive the right to withdraw without sales charges.

We will also notify the insurance regulators and the Canadian Life and Health Insurance Association Inc. at the same time we notify you of the change (unless such notice is not practical in the circumstances, in which event we will provide notice as soon as possible and as reasonably practical), and amend or re-file the information folder to reflect the change. The foregoing may be superseded by any regulatory changes governing individual variable insurance contracts.

A Similar Fund is a Fund that; (a) has a comparable investment objective, (b) is in the same fund investment category, (c) has the same or lower management fee and insurance fee, and (d) is valued at the same or greater frequency as the Fund subject to the fundamental change.

Changing an Underlying Fund will not constitute a fundamental change provided that all of the conditions for a Similar Fund continue to apply to the Fund immediately following the change.

A similar Underlying Fund is one that: (a) has a comparable fundamental investment objective (b) is in the same investment fund category and (c) has the same or lower management fee.

The investment objective of the Underlying Funds may not be changed unless approved by the unit holders of the underlying mutual fund. Upon such approval, you will be provided notice of the change.

In the case where an ivari Guaranteed Investment Portfolios (GIP) invests in multiple Underlying Funds, periodic changes to the Underlying Funds or to the target weightings of the GIP is not considered a

fundamental change unless the change to the GIP is so material that is meets the definition of fundamental changes as outlined above.

14.2 Claims of Creditors

This Contract may be protected from claims of creditors when the Beneficiary is the spouse, parent, child or grandchild of the Annuitant (in Quebec, the Beneficiary must be the married or civil union spouse, the ascendant or descendant of the Owner), or if the Beneficiary is named irrevocably. It is not clear if creditor protection is available if the Contract is held in nominee name. This description is of a general nature only. There are important limitations with respect to this protection and this description does not include all possible considerations. You should consult your own legal advisors with respect to your particular circumstances.

14.3 Catastrophic events

If the performance of any of our obligations under the Contract is delayed or otherwise made impractical due to causes beyond our control, our obligations may be postponed until such time the cause ceases to preclude or make impractical the performance of our obligation under the Contract.

14.4 non-Participating Contract

The Contract does not participate in the profits or surplus realized by ivari.

14.5 assignment of this Contract

We are not bound by an assignment or hypothec unless it is filed with and recorded by ivari at its Head Office. We are not responsible for the adequacy or legal effect of an assignment or hypothec.

14.6 notices

It is your obligation to notify us of any change in your address. Any notice, payment or statement sent to your last known address on our records is considered to be sufficiently given.

14.7 Income Tax act

The provisions in this policy are based upon the current provisions of the Income Tax Act (Canada), the regulations thereto, all proposed amendments thereto publicly released by the Department of Finance (Canada) prior to the Issue Date and on the understanding of ivari of the current administrative practices and policies of Canada Revenue Agency, Taxation. For the purpose of this paragraph, “current” means current to the Issue Date. The Owner is cautioned that the law may change at any time and from time to time whether by legislative, governmental or judicial action in such a way as to adversely affect the tax status of this policy.

14.8 limitation of actions

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act, or other applicable provincial legislation.

47

ivariTM

ivari Guaranteed Investment Fundsretirement Savings Plan (rSP) endorsement

48

1. InTerPreTaTIon

This endorsement contains additional terms that apply if you requested that the Contract be registered as a Retirement Savings Plan (RSP) under the Income Tax Act (Canada) (the “act”) and any applicable provincial income tax legislation.

In this endorsement, “you” “your” refer to the Owner, who is also the Annuitant under the Contract. “We” refers to ivari.

rSP age means the end of year in which you turn 71 years of age or any other age as prescribed by the Act.

“Spouse” and “common-law partner” have the meanings defined in the Act and any applicable provincial income tax legislation.

2. TIMe lIMIT For an rSP

You may hold an RSP until you reach the RSP Age.

3. PaYMenT Under THe rSP

No payment from the Contract will be made prior to the RSP Age except as a refund of premium as defined under the Act or a payment to you.

4. oPTIonS Under THe rSP

You may elect to take the Market Value of the Contract, as the term is defined in the Annuity Policy (the “Value”) and exercise the following options:

(a) transfer the Value to another registered retirement savings plan;

(b) use the Value to purchase an annuity that satisfies the conditions set out below;

(c) withdraw the Value, in full or in part, subject to taxes and surrender fees; and

(d) transfer the Value to a registered retirement income fund.

At the RSP Age, you may only elect options (b), (c) and (d).

The annuity provided under paragraph 4(b) has to meet the following conditions:

(a) The annuity must be a single life annuity or a joint and survivor life annuity on your life and your spouse or common-law partner, or a term certain annuity on your life.

(i) If you chose a single life or a joint life annuity, the guarantee period must not exceed 90 minus your age or the age of your spouse or common-law partner, if younger.

(ii) If you chose a term certain annuity, the guarantee period is subject to the same restriction outlined in (i).

(b) The annuity must provide for annual or more frequent payments.

(c) Payments under the annuity must be equal, except that they may be increased or decreased in accordance with paragraph 146(3) (b) of the Act.

(d) Annuity payments to you or your spouse or common-law partner may not be commuted, either in full or in part, except that we reserve the right to commute an annuity where the monthly payment is less than $50.00. If you die after annuity payments commence and your spouse or common law partner becomes the annuitant under the policy, the total of all annuity payments in a year after the date of death of the first to die will not exceed the total of all annuity payments made in a year before such death.

(e) If you die after annuity payments commence and the Beneficiary is not your spouse or common law partner, the commuted value of any remaining annuity payments will be paid in one sum to the Beneficiary, if there is one, otherwise to your estate.

(f) If you die before annuity payments commence, the death benefit will be paid in one sum, unless a “refund of premiums” as defined in subsection 146(1) of the Act has been requested.

(g) Annuity payments cannot be assigned in whole or in part.

Any amounts paid under paragraphs 4(a), (b), (c) or (d) will discharge ivari’s liability under the Contract.

retirement Savings Plan (rSP) endorsement

49

5. MISCellaneoUS

No deposits will be accepted after Annuity Payments have commenced.

Upon request, we will pay an amount to the taxpayer to reduce the amount of tax the taxpayer would otherwise have to pay because of over-contributions by the taxpayer under Part X.1 of the Act.

The Contract and the payments cannot be assigned.

We reserve the right to resign as issuer and appoint a successor issuer.

This endorsement has precedence over any provision contained in this Contract that is inconsistent with it.


51

ivariTM

ivari Guaranteed Investment Fundsretirement Income Fund (rIF) endorsement

52

1. General

This endorsement contains additional terms that apply if you requested that the Contract be registered as a Retirement Income Fund (RIF) under the Income Tax Act (Canada) (the “Act”) and any applicable provincial income tax legislation.

In this endorsement, “you” “your” refer to the Owner, who is also the Annuitant under the Contract. “We” refers to ivari.

“Spouse” and “common-law partner” have the meanings defined in the Act and any applicable provincial income tax legislation.

2. dePoSITS

ivari will only accept deposits or transfers under the Contract from:

(a) a registered retirement savings plan (RRSP) under which you are the Owner;

(b) another registered retirement income fund under which you are the Owner;

(c) a registered pension plan (RPP)under which you are a member or a former member;

(d) you, to the extent that the amount of the deposit or transfer was an amount described in subparagraph 60(l)(v) of the Act;

(e) a RRSP or RRIF of your spouse, common-law partner or former spouse or common law partner pursuant to a decree, order or judgment of a competent tribunal or a written separation agreement, relating to a division of property in settlement of rights arising out of, or on the breakdown of, their marriage or common-law relationship;

(f) the RPP of your spouse, common-law partner, former spouse in accordance with subsection 147.3(5) or (7) of the Act;

(g) a provincial pension plan in circumstances to which subsection 146(21) of the Act applies;

(h) any sources permitted under the Act.

3. PaYMenTS Under THe ConTraCT

ivari will make at least the minimum payment each calendar year as provided in subsection 146.3(1) of the Act, or such greater amount as you requested in accordance with any limitation under the Act. You may elect the frequency of the payment as monthly, quarterly, semi-annually or annually. If no election is made, the payment will be made to you annually.

4. TranSFerS

Under the endorsement, you may upon request transfer all or part of the Market Value of the Contract (the “Value”)

(a) to the carrier of another registered retirement income fund of which you are also the Annuitant of the Act;

(b) to the issuer of another registered retirement savings plan under which you are the Annuitant prior to the prescribed age for an RRSP within the meaning of subsection 146(1) of the Act;

(c) to purchase an immediate life annuity under the terms of the Act;

(d) to a RRIF or RRSP of your spouse, common-law partner, former spouse or common-law partner as a result of marriage breakdown or upon death in accordance with subsection 146.3(14) of the Act.

In accordance with the Act, before the transfer is made, we will pay you any remaining minimum amount for the year. Any amount payable is subject to taxes and withdrawal fees, as applicable.

Payment of the entire Market Value of the Contract under this section 4 will discharge ivari’s liability under the Contract.

5. SUCCeSSor annUITanT

You may elect to appoint your spouse or common-law partner as Successor Annuitant who will replace you as Annuitant upon your death. The Successor Annuitant may exercise every right as Owner under the Contract on your death.

Where a Successor Annuitant has been designated in the contract, the death benefit will be paid on the death of the last to die of the Annuitant or the Successor Annuitant.

retirement Income Fund (rIF) endorsement

53

6. deaTH BeneFIT

The death benefit payable under the RIF endorsement is described in the annuity policy.

7. MISCellaneoUS

Neither the Contract nor payments under the Contract may be assigned in whole or in part.

We reserve the right to resign as carrier and appoint a successor carrier.

This endorsement has precedence over any provision contained in this Contract that is inconsistent with it.


54

FUnd FaCTS

55

How to read an ivari GIF Fund Facts

1

2

3

IdenTIFYInG InForMaTIon

The name of the segregated fund contract, the segregated fund name and the date of the information presented.

qUICK FaCTS

date fund created: This is the date on which the fund was first available for purchase as an investment option under the contract.

Total fund value: This is the total market value of the assets within the fund.

net asset value per unit: The dollar value of each unit notionally held within a fund, calculated as follows: total fund value divided by the number of units outstanding.

number of units outstanding: Represents the total number of units notionally held by policyholders in the fund.

Management expense ratio (Mer): A measure of what it costs to operate the fund. MERs include all expenses of the segregated fund such as the management fees, insurance costs, operating costs and applicable taxes. Where the fund invests in an underlying fund(s), there is no duplication of fees. These fees are paid by the fund and affect the unit values. The MER indicated is from the current annual audited financial statements (if applicable, if not an estimated MER is provided) and is subject to change.

Portfolio manager: An individual, or firm, who controls the assets within the fund or underlying fund. The portfolio manager monitors and selects appropriate investments based on the investment objective of the fund or underlying fund.

Portfolio turnover rate: Portfolio turnover rate is the portion of securities in a fund’s portfolio that are bought and sold during the course of a year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. Where the fund invests in an underlying fund or funds, the portfolio turnover rate is that of the underlying fund(s).

Minimum initial deposit: The minimum amounts required to purchase the segregated funds contract, or units of the fund.

Fund code: Used to identify the fund.

WHaT doeS THe FUnd InVeST In?

This describes what the segregated fund invests in.

Current Underlying Funds: These are the current underlying funds held within the fund as of the date indicated. If applicable, target allocations are also indicated.

Top (10) investments of the fund: This shows the top investments of the (underlying) fund(s), in order, beginning with the highest percentage weighting. Unless indicated as a bond or treasury bill, the investment will be considered to be an equity. If it holds underlying fund(s), then the top 10 investments will list the top 10 investments of the underlying fund if it is more than 50% of the assets of the fund. If the underlying fund is less than 50% of the assets of the fund, then the name of the underlying fund will be listed as one of the top 10 investments. The holdings may change due to ongoing portfolio transactions.

Total investments: Total number of investments held with the fund.

asset mix/ Sector allocation/Portfolio allocation: The pie chart indicates the percentage of the fund’s investment portfolio by subgroups, such as the investment type, industry segment or geographic location based on the nature of the fund.

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Bond GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $24,551Net asset value per unit: $12.78Number of units outstanding: 1,920,291Management expense ratio (MER): 2.27%Portfolio manager: Foresters Asset Management Inc.†

Portfolio turnover rate : 64.07% Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1002Fund Code: Initial Sales Charge (ISC): TLC1003† Aegon Capital Management Inc. on December 31, 2015

WHAT DOES THE FUND INVEST IN?

The Fund invests mainly in medium term, high-quality corporate and government bonds.

Top 10 investments of the fund as of December 31, 2015

Canadian Government Bond, 3.50%, December 01, 2045 9.31%ClareGold Trust, FRN, 5.07%, May 15, 2044 4.37%CDP Financial Inc., 4.60%, July 15, 2020 3.30%Master Credit Card Trust, 3.88%, January 21, 2017 3.25%Aimia Inc., 5.60%, May 17, 2019 2.86%EnerCare Solutions Inc., 4.60%, February 03, 2020 2.83%Home Trust Co., 3.40%, December 10, 2018 2.42%TELUS Corp., 4.40%, January 29, 2046 2.34%Real Estate Asset Liquidity Trust, 5.04%, April 12, 2023 2.25%Wells Fargo & Co., 3.87%, May 21, 2025 2.15%

Total 35.06%

Total investments: 67

HOW HAS THE FUND PERFORMED?

This section tells you how the fund has performed over the past 10 years for a contractholder. Returns are after the MER has been deducted.

It’s important to note that this doesn’t tell you how the fund will perform in the future. Also, your actual return will depend on your personal tax situation.

Average return

A person who invested $1,000 in the fund on October 13, 2009 now has $1,278.48. This works out to an average of 4.01% per year.

Year-by-year returns

ivari Canadian Bond GIF – imaxxGIF 75/100 (similar class)ivari Canadian Bond GIF (fund)

-5

0

5

10

15

2006 2007 2008 2009 2010 2011 2012 2013 20152014

6.4%2.5%

0.9%

-0.8%

2.9%

8.4% 8.8%

3.9%7.2%

-1.4%

This chart shows how the fund or similar class of the same fund performed in each of the past 10 years. In the last 10 years, the performance was up in value 8 years and down in value 2 years. For illustration purposes. Actual segregated fund performance is expected to vary.

HOW RISKY IS IT?

The value of your investments can go down. Please see the Information Folder – The Risks of Investing in Segregated Funds Section for the risks of this fund.

Very low Low Moderate HighLow to

moderateModerate

to high

ARE THERE ANY GUARANTEES?

This segregated fund is being offered under an insurance contract. It comes with guarantees that may protect your deposits, with some limits, if the markets go down. The MER includes the insurance cost for those guarantees. For details please refer to the Information Folder and contract.

WHO IS THIS FUND FOR?

This fund may be right for a person who will invest for a medium term and wants potential for income and some growth and is comfortable with small changes in value during the term.

Asset mix as of December 31, 2015

Bond 98.27%Cash 0.86%Other 0.87%

2 4

5

6

7

1

3

56

4

5 6

7

HoW HaS THe FUnd PerForMed?

The information in this section shows fund performance for a period of 1 to 10 years, depending on how long the fund has been in existence. Returns are after the MER has been deducted.

average return: This section shows the value of a $1,000 investment in the fund from the date it was created. It also shows the average percentage per year in the growth of the fund. For any fund with less than one-year history, the information is not provided due to insufficient segregated fund history.

Year by year returns: This is a bar chart showing how the fund has performed in each of the past ten years, or less if applicable. Each bar shows in percentage terms how much an investment made on January 1st would have changed by December 31st in that same year. We also state the number of years that the performance of the fund was either up or down in value. Where the fund has less than 10 years of history, the performance of the underlying fund or a similar class of the same segregated fund is shown for the time period prior to the availability of the fund. Performance of the fund may be higher or lower because the MER of the fund may be different from the underlying fund or a similar class of the same fund. The timing of purchases and redemptions can also impact performance. Where a fund invests in several underlying funds or if there is no similar class of the segregated fund available, only the performance of the actual segregated fund is shown. For any fund with less than one-year history, the graph is not provided due to insufficient segregated fund history.

HoW rISKY IS IT?

The value of your investments can go down. The level of risk that is suitable for you will depend on a number of factors such as your investment goals and risk tolerance. Speak to your advisor to determine the appropriate funds for you in your particular circumstances. This chart ranks the fund’s estimated volatility ranging from very low to high. The ranking is based on the fund’s historical performance data and/or the historical performance data of the underlying mutual fund or similar class of the same fund. For any fund with less than one-year history, we have determined the risk ranking for the fund based on its asset classification, investment objective, underlying investments and other factors.

are THere anY GUaranTeeS?

Your contract has certain guarantees that protect the value of your investment upon maturity and at death. The cost for those guarantees is included in the MER of the fund.

WHo IS THIS FUnd For?

This section identifies the type of investor that is suitable for the fund. Speak to your advisor to determine your investment goals and tolerance for risk.

How to read an ivari GIF Fund Facts continued


QUICK FACTS







Total 35.06%





Average return




-5

0

5

10

15

2006 2007 2008 2009 2010 2011 2012 2013 20152014

6.4%2.5%

0.9%

-0.8%

2.9%

8.4% 8.8%

3.9%7.2%

-1.4%


HOW RISKY IS IT?



moderateModerate

to high







2 4

5

6

7

1

3

57

8

9

10

HoW MUCH doeS IT CoST?

This section describes the fees and ongoing expenses applicable to a policyholder who buys, sells, switches or holds units of the funds.

• Sales charges – This table describes what you pay and how it works. When you purchase the contract you choose a sales charge option – either Initial Sales Charge (ISC) or Deferred Sales Charge (DSC).

– ISC: you and your advisor negotiate a commission when you purchase the contract, you do not pay a sales charge when you sell units of the contract.

– DSC: you are charged a fee for a fixed number of years on a declining basis when you sell units of a fund.

• Ongoing fund expenses – This section describes the fees and operating expenses applicable to the fund based on the guarantees available for this contract.

• Trailing commission – This section shows the percentage of commission we pay out of the management fee to your advisor for the advice and services provided to you.

• Other fees – This section describes fees you may pay when you sell or transfer units of the fund.

WHaT IF I CHanGe MY MInd?

This section describes the policyholder’s rights to cancel investment decisions and the amount that will be returned. It tells you what you need to do and within what period of time you need to do it.

For More InForMaTIon

This section provides ivari’s contact information.

2. Ongoing fund expenses

The MER includes the management fee, the insurance cost for the guarantees, operating expenses and the applicable taxes of the fund. You do not pay for these expenses directly. They affect you because they reduce the return you get on your investment. For details about how the guarantees work, see your insurance contract.

HOW MUCH DOES IT COST?

The following tables show the fees and expenses you could pay to buy, and sell units of the fund.

1. Sales charges

Sales charge option What you pay How it works

Initial Sales Charge Up to 5% of the amount you buy • You and your advisor decide on the rate.• The initial sales charge is deducted from the amount you buy. It is paid as a commission.

Deferred Sales Charge (as a percentage of the original purchase price of DSC units)

If you sell within:1st year after deposit 6%2nd year after deposit 5%3rd year after deposit 4%4th year after deposit 3%5th year after deposit 2%6th year after deposit 1%7th year after deposit 0%

• The deferred sales charge is a set rate. It is deducted from the amount you sell.• When you buy the fund, we pay a commission of up to 5%. Any deferred sales charge you pay will

be paid to us.• You can sell up to 10% of your units each year without paying a deferred sales charge.• No deferred sales charge is charged for switches between funds offered in this contract.

3. Other fees

You may have to pay other fees when you sell or transfer units of the fund.

WHAT IF I CHANGE MY MIND?

You can change your mind about a new contract within two business days of the earlier of:

• the date you received confirmation; and• five business days after it is mailed

You can also change your mind about new deposits and switches you make under the contract within two business days of the earlier of:

• the date you received confirmation of the transaction; and• five business days after it is mailed

You have to tell us in writing, by email, fax or letter, that you want to cancel. The amount returned will be the lesser of the amount you invested and the market value, if it has gone down. The amount returned only applies to the specific transaction and will include a refund of any sales charges or other fees you paid for the cancelled transaction. If you cancel a switch, the amount will be returned to the original fund.

FOR MORE INFORMATION

This summary may not contain all the information you need. Please read the contract and the Information Folder. You may contact us at:

ivari Toll free number: 1-800-846-5970 500-5000 Yonge Street Email: [email protected] Toronto, ON M2N 7J8 ivari.ca

Fee What you pay

Early Withdrawal Fee 2% of the value of units you sell or transfer within 90 days of buying them.

Early Switch Fee 2% of the value of units you trade for switches within 90 days of buying them.

Switch Fee 2% of the amount switched for each switch after the fourth switch is done in the same calendar year.

Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value.ivari and the ivari logos are trademarks of ivari Canada ULC. ivari is licensed to use such marks.

ivari Canadian Bond GIF ivari Guaranteed Investment Funds

Guarantee (Maturity/Death)

MER (Annual rate as a % of the fund’s value)

75/100 2.27%

Trailing commission

We pay a trailing commission for as long as you own the fund. It is for the services and advice that is provided to you. The trailing commission is paid out of the management fee. The rate depends on the sales charge option you choose:

• Initial sales charge – up to 0.75% of the value of your investment each year

• Deferred sales charge – up to 0.25% of the value of your investment each year

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How to read an ivari GIF Fund Facts continued

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Money Market GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $3,227Net asset value per unit: $10.00Number of units outstanding: 322,676Management expense ratio (MER): 0.75%Portfolio manager: Foresters Asset Management Inc.†

Portfolio turnover rate: N/AMinimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1000Fund Code: Initial Sales Charge (ISC): TLC1001† Aegon Capital Management Inc. on December 31, 2015


The Fund invests in short-term, high-quality, low-risk Canadian securities issued by the federal and provincial governments with maturity dates of less than one year.


Canadian Treasury Bill, 0.45%, June 02, 2016 13.41%Canadian Treasury Bill, 0.45%, February 11, 2016 12.36%Canadian Treasury Bill, 0.42%, February 25, 2016 10.48%Canadian Treasury Bill, 0.49%, May 19, 2016 9.94%Canadian Treasury Bill, 0.45%, June 02, 2016 7.28%Canadian Treasury Bill, 0.50%, June 16, 2016 5.84%Canadian Treasury Bill, 0.49%, January 05, 2016 5.34%Canadian Treasury Bill, 0.39%, January 14, 2016 4.52%The Toronto Dominion Bank, 0.72%, January 25, 2016 4.10%Canadian Imperial Bank of Commerce, 0.68%, January 29, 2016 4.10%

Total 77.38%





Average return



ivari Canadian Money Market GIF – imaxxGIF 75/100 (similar class)ivari Canadian Money Market GIF (fund)

0

1

2

3

4

2006 2007 2008 2009 2010 2011 2012 2013 20152014

0.0% 0.0% 0.0% 0.0% 0.0%

2.6%3.0%

1.9%

0.1% 0.0%

This chart shows how the fund or similar class of the same fund performed in each of the past 10 years. In the last 10 years, the performance was up in value 4 years and there was no change in value 6 years. For illustration purposes. Actual segregated fund performance is expected to vary.

HOW RISKY IS IT?


Very low Moderate HighLow to

moderateModerate

to highLow




This fund may be right for a person who will invest for the short term and wants some income with very small changes in value during the term.


Cash 99.90%Other 0.10%

59





1. Sales charges







3. Other fees


Fee What you pay





ivari Canadian Money Market GIF ivari Guaranteed Investment Funds



75/100 0.75%*

Trailing commission

We pay a trailing commission for as long as you own the fund. It is for the services and advice your advisor provides to you. The trailing commission is paid out of the management fee. The rate depends on the sales charge option you choose:


• Deferred sales charge – up to 0% of the value of your investment each year

* In response to historical low short-term interest rates, the decision was made to temporarily waive a portion of the fees charged to the Fund. This temporary measure was effective as of March 31, 2009. We reserve the right to change management fees.










60


QUICK FACTS







Total 35.06%





Average return




-5

0

5

10

15

2006 2007 2008 2009 2010 2011 2012 2013 20152014

6.4%2.5%

0.9%

-0.8%

2.9%

8.4% 8.8%

3.9%7.2%

-1.4%


HOW RISKY IS IT?



moderateModerate

to high







61





1. Sales charges







3. Other fees











Fee What you pay





ivari Canadian Bond GIF ivari Guaranteed Investment Funds



75/100 2.27%

Trailing commission




62

FUND FACTSivari Guaranteed Investment Fundsivari TD Income Advantage GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $14,696Net asset value per unit: $12.01Number of units outstanding: 1,223,933Management expense ratio (MER): 3.07%Portfolio manager: TD Asset Management Inc.Portfolio turnover rate: 13.79%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1056Fund Code: Initial Sales Charge (ISC): TLC1057


The Fund invests mainly in units of the current underlying fund and/or other investments as chosen by us.

Current underlying fund

TD Income Advantage Portfolio

Top investments of the underlying fund as of December 31, 2015

TD Canadian Bond Fund 35.65%TD Income Opportunities Pool 19.01%TD Target Return Conservative Fund 10.06%TD Risk Reduction Pool 9.48%TD Dividend Income Fund 8.43%TD Short Term Bond Fund 8.06%TD Global Low Volatility Fund 4.96%TD High Yield Bond Fund 4.35%

Total 100.00%





Average return



TD Income Advantage Portfolio (underlying fund – Series I)ivari TD Income Advantage GIF (fund)

-10

0

10

20

2006 2007 2008 2009 2010 2011 2012 2013 20152014

16.6%

5.5%0.9%

-7.5%-1.1%

3.5% 2.9% 1.6%5.6%4.9%

This chart shows how the fund or underlying fund performed in each of the past 10 years. In the last 10 years, the performance was up in value 8 years and down in value 2 years. For illustration purposes. The segregated fund MER is higher than the mutual fund MER. Actual segregated fund performance is expected to be lower than the underlying fund performance.

HOW RISKY IS IT?



moderateModerate

to high





Asset mix of the underlying fund as of December 31, 2015

Stock 67.00%Bond 33.00%

63



Trailing commission


• Initial sales charge – up to 1% of the value of your investment each year




1. Sales charges







3. Other fees











Fee What you pay





ivari TD Income Advantage GIF ivari Guaranteed Investment Funds



75/100 3.07%

64

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Short-Term Bond GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: November 2012Total fund value (in 000s): $475Net asset value per unit: $10.37Number of units outstanding: 45,756Management expense ratio (MER) : 1.92%Portfolio manager: Foresters Asset Management Inc.†

Portfolio turnover rate : 109.86%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1100Fund Code: Initial Sales Charge (ISC): TLC1101† Aegon Capital Management Inc. on December 31, 2015


The Fund invests mainly in Canadian fixed-income and other short-term securities.


Canadian Government Bond, 0.75%, September 1, 2020 8.68% Schooner Trust, 4.85%, October 12, 2038 4.95% Canadian Government Bond, 1.50%, September 1, 2017 4.80% Canadian Government Bond, 1.50%, March 01, 2020 4.75% Metropolitan Life Global Funding I, 2.68%, April 16, 2019 3.73% Home Trust Co., 3.40%, December 10, 2018 3.32% EnerCare Solutions Inc., 4.60%, February 03, 2020 3.27% WTH Car Rental ULC, 2.54%, August 20, 2019 3.11% Aimia Inc., 6.95%, January 26, 2017 2.90% National Bank of Canada, 3.26%, April 11, 2022 2.85%

Total 42.36%





Average return

A person who invested $1,000 in the fund on November 1, 2012 now has $1,037.39. This works out to an average of 1.20% per year.


ivari Canadian Short-Term Bond GIF (GS/GS2)ivari Canadian Short-Term Bond GIF (fund)

01234567

2006 2007 2008 2009 2010 2011 2012 2013 20152014

2.9%1.8%

1.0%2.0%

0.8%

2.5%1.9%

4.2%5.5%

3.3%

This chart shows how the fund or similar class of the same fund performed in each of the past 10 years. In the last 10 years, the performance was up in value 10 years. For illustration purposes. Actual segregated fund performance is expected to vary.

HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for the short term and wants some income with small changes in value during the term.



65





1. Sales charges







3. Other fees


Fee What you pay














ivari Canadian Short-Term Bond GIF ivari Guaranteed Investment Funds



75/100 1.92%

Trailing commission




66

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Balanced GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $4,995 Net asset value per unit: $11.82 Number of units outstanding: 422,621Management expense ratio (MER): 3.00%Portfolio manager: Foresters Asset Management Inc.†

Portfolio turnover rate: 116.46%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1004Fund Code: Initial Sales Charge (ISC): TLC1005† Aegon Capital Management Inc. on December 31, 2015


The Fund invests in a balanced mix of Canadian fixed-income and equity securities.


Canadian Government Bond, 2.25%, June 01, 2025 4.76%Canadian Government Bond, 3.50%, December 01, 2045 3.65%Royal Bank of Canada 3.64%The Toronto-Dominion Bank 2.85%Manulife Financial Corp. 2.46%Alimentation Couche-Tard Inc. 2.17%Master Credit Card Trust, 3.88%, January 21, 2017 2.07%Canadian National Railway Co. 2.05%Enbridge Inc. 1.89%Suncor Energy Inc. 1.81%

Total 27.35%





Average return



ivari Canadian Balanced GIF – imaxxGIF 75/100 (similar class)ivari Canadian Balanced GIF (fund)

-30-20-100102030

2006 2007 2008 2009 2010 2011 2012 2013 20152014

7.4%10.9%2.8%

-19.4%

12.1%

-2.1% -4.2%

3.4% 5.2% 5.6%


HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for a medium to long term and wants potential for growth and income and is comfortable with small to moderate changes in value during the term.


Stock 53.63%Bond 44.84%Cash 1.36%Other 0.17%

67



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Canadian Balanced GIF ivari Guaranteed Investment Funds



75/100 3.00%

68

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Fixed Pay GIFAll information is as of December 31, 2015

QUICK FACTS






imaxx Canadian Fixed Pay Fund

Top 10 investments of the underlying fund as of December 31, 2015

Toronto-Dominion Bank 4.42%Manulife Financial Corp 4.19%Royal Bank of Canada 4.17%Canadian National Railway Co 3.33%Enbridge Inc 3.20%Alimentation Couche-Tard Inc 2.74%Rogers Communications Inc 2.56%JPMorgan Chase & Co 2.21%Canadian Government Bond 2.25% Jun 01, 2025 2.16%Bank of Montreal 2.07%

Total 31.05%





Average return



imaxx Canadian Fixed Pay Fund (underlying fund)ivari Canadian Fixed Pay GIF (fund)

-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 20152014

35.2%

-1.6%

10.6%

-25.9%

17.2%7.6% 5.7% 7.7% 5.3% 0.1%

This chart shows how the fund or underlying fund performed in each of the past 10 years. In the last 10 years, the performance was up in value 8 years and down in value 2 years. For illustration purposes. The segregated fund MER is higher than the underlying mutual fund MER. Actual segregated fund performance is expected to be lower than the underlying fund performance.

HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for the long term and wants potential for growth and some income and is comfortable with moderate changes in value during the term.



69



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Canadian Fixed Pay GIF ivari Guaranteed Investment Funds



75/100 3.39%

70

FUND FACTSivari Guaranteed Investment Fundsivari Fidelity Canadian Balanced GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $14,795Net asset value per unit: $14.75Number of units outstanding: 1,003,318Management expense ratio (MER): 3.40%Portfolio manager: Pyramis Global Advisors LLCPortfolio turnover rate: 11.46% Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1086Fund Code: Initial Sales Charge (ISC): TLC1087




Fidelity Canadian Balanced Fund


Restaurant Brands International Inc 3.02%Brookfield Asset Inc Vtg Cl A 2.92%Canadian Pac Railway Ltd 2.20%Gildan Activewear Inc 1.99%Toronto-Dominion Bank 1.82%CVS Health Corp 1.58%Methanex Corp 1.47%Alimentation Couch Cl B Subvtg 1.45%Moody's Corp 1.38%Medtronic Plc 1.29%

Total 19.12%

Total investments: 1,031




Average return



Fidelity Canadian Balanced Fund (underlying fund – Series B)ivari Fidelity Canadian Balanced GIF (fund)

-30-20-10010203040

2006 2007 2008 2009 2010 2011 2012 2013 20152014-18.7%

10.5% 8.1%

22.3%12.0%

-2.3%

4.7% 2.2%11.2% 9.7%


HOW RISKY IS IT?



moderateModerate

to high






Stock 47.59%Bond 47.02%Cash 5.39%

71



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Fidelity Canadian Balanced GIF ivari Guaranteed Investment Funds



75/100 3.40%

72

FUND FACTSivari Guaranteed Investment Fundsivari Fidelity Canadian Asset Allocation GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $9,212Net asset value per unit: $12.34Number of units outstanding: 746,246Management expense ratio (MER): 3.48%Portfolio manager: Pyramis Global Advisors LLCPortfolio turnover rate: 5.96% Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1092Fund Code: Initial Sales Charge (ISC): TLC1093




Fidelity Canadian Asset Allocation Fund


Royal Bank Of Canada 3.91%Toronto-Dominion Bank 3.62%Suncor Energy Inc 2.48%US 10YR Fut Mar16 TYH6 2.05%Constellation Software Inc 1.83%Enbridge Inc 1.80%BCE Inc 1.71%Metro Inc 1.70%Canadian Natl Resources Ltd 1.52%S&P/TSX 60 IX Fut Mar16 PTH6 1.46%

Total 22.08%

Total investments: 1,374




Average return



Fidelity Canadian Asset Allocation Fund (underlying fund – Series B)ivari Fidelity Canadian Asset Allocation GIF (fund)

-30-20-10010203040

2006 2007 2008 2009 2010 2011 2012 2013 20152014-19.3%

12.0%6.1%

24.8%

8.7%

-6.4% -2.0%

1.5%8.7% 8.5%


HOW RISKY IS IT?



moderateModerate

to high







73



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Fidelity Canadian Asset Allocation GIF ivari Guaranteed Investment Funds



75/100 3.48%

74

FUND FACTSivari Guaranteed Investment Fundsivari TD Dividend Balanced GIPAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $7,265Net asset value per unit: $12.73Number of units outstanding: 570,509Management expense ratio (MER): 3.15%Portfolio manager: TD Asset Management Inc. – Multi ManagersPortfolio turnover rate: 6.70%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1058Fund Code: Initial Sales Charge (ISC): TLC1059


The Fund invests in units of several underlying TD mutual funds and/or other investments as chosen by us. The underlying mutual funds will invest mainly in high-quality, high-yielding equities of Canadian companies and fixed-income securities.

Current underlying fundsTarget

allocation

TD Canadian Core Plus Bond Fund TD Dividend Growth Fund

60%40%

Top investments of the fund as of December 31, 2015

TD Canadian Core Plus Bond Fund 60.50%(Top 10 investments of the underlying fund)Government of Canada 4.00% due June 01, 2041 3.40%Government of Canada 5.00% due June 01, 2037 2.60%Province of Ontario 4.65% due June 02, 2041 2.50%Government of Canada 1.50% due June 01, 2023 2.20%Province of Ontario 2.85% due June 02, 2023 1.60%Province of Ontario 3.45% due June 02, 2045 1.30%Government of Canada 2.50% due June 01, 2024 1.20%Government of Canada 1.75% due March 01, 2019 1.10%Province of British Columbia 4.30% due June 18, 2042 1.00%Bank of Montreal 0.45% due January 04, 2016 1.00%

TD Dividend Growth Fund 39.50%

Total 100.00%





Average return



ivari TD Dividend Balanced GIP (fund)

-6-3036912

2010 2011 2012 2013 20152014

6.1%2.8%

-3.1%

5.5%4.2%

7.3%

This chart shows how the fund performed in each of the past 6 years. In the last 6 years, the performance was up in value 5 years and down in value 1 year. The segregated fund MER is higher than the underlying mutual fund MER. Actual segregated fund performance is expected to be lower than the underlying fund performance.

HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for a medium to long term and wants potential for income and some growth and is comfortable with small to moderate changes in value during the term.

Sector allocation of the underlying fund as of December 31, 2015

Financials 21.36%Energy 6.24%Industrials 3.47%Telecom. Services 2.86%Consumer Discretionary 2.14%Utilities 0.86%Consumer Staples 0.60%Materials 0.42%Health Care 0.27%Information Technology 0.03%Other 61.75%

75



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari TD Dividend Balanced GIP ivari Guaranteed Investment Funds



75/100 3.15%

76

FUND FACTSivari Guaranteed Investment Fundsivari TD Dividend Income GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $24,525Net asset value per unit: $13.58Number of units outstanding: 1,805,372Management expense ratio (MER): 3.45%Portfolio manager: TD Asset Management Inc.Portfolio turnover rate: 4.66%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1062Fund Code: Initial Sales Charge (ISC): TLC1063




TD Dividend Income Fund


Royal Bank of Canada 7.30%Toronto-Dominion Bank 7.00%Bank of Montreal 6.50%Canadian Imperial Bank of Commerce 6.10%Bank of Nova Scotia 5.80%Enbridge Inc 3.50%Brookfield Asset Management Inc. 3.40%Canadian National Railway Company 2.90%Manulife Financial Corporation 2.50%BCE Inc. 2.50%

Total 47.50%





Average return



TD Dividend Income Fund (underlying fund – Series I)ivari TD Dividend Income GIF (fund)

-40-2002040

2006 2007 2008 2009 2010 2011 2012 2013 20152014

-28.8%

-6.8%

7.8% 11.0% 9.5%13.2%0.1%

30.8%

7.5% 0.2%


HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for a medium to long term and wants potential for income and growth and is comfortable with small to moderate changes in value during the term.


Stock 78.20%Bond 21.70%Cash 0.10%

77



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari TD Dividend Income GIF ivari Guaranteed Investment Funds



75/100 3.45%

78

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Equity GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $2,425 Net asset value per unit: $11.25Number of units outstanding: 215,496Management expense ratio (MER): 3.50%Portfolio manager: Foresters Asset Management Inc.†



The Fund invests mainly in the equities of large Canadian companies and some medium-sized companies with strong growth potential.


Royal Bank of Canada 6.62%The Toronto-Dominion Bank 5.30%Manulife Financial Corp. 4.55%Alimentation Couche-Tard Inc. 4.19%Canadian National Railway Co. 3.78%Enbridge Inc. 3.29%Suncor Energy Inc. 3.12%Bank of Montreal 2.99%Valeant Pharmaceuticals International Inc. 2.81%Brookfield Asset Management Inc. 2.57%

Total 39.24%





Average return



ivari Canadian Equity GIF – imaxxGIF 75/100 (similar class)ivari Canadian Equity GIF (fund)

-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 20152014

9.4%12.7% 14.4%

-33.7%

17.9%

-10.1% -8.2%

3.3% 4.8%10.3%

This chart shows how the fund or similar class of the same fund performed in each of the past 10 years. In the last 10 years, the performance was up in value 7 years and down in value 3 years. For illustration purposes. Actual segregated fund performance is expected to be lower than the underlying fund performance.

HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for the long term and wants potential for growth and is comfortable with moderate changes in value during the term.


Stock 97.84%Cash 1.99%Other 0.17%

79



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Canadian Equity GIF ivari Guaranteed Investment Funds



75/100 3.50%

80

FUND FACTSivari Guaranteed Investment Fundsivari Canadian Large Cap Index GIFAll information is as of December 31, 2015

QUICK FACTS


Portfolio turnover rate: N/AMinimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1024Fund Code: Initial Sales Charge (ISC): TLC1025† Aegon Capital Management Inc. on December 31, 2015


The Fund invests in units of exchange traded funds and/or futures contracts that get their value from the performance of the S&P/TSX 60 Index. Money market instruments, such as treasury bills and short-term government and corporate debt securities may also make up the rest of the assets of the Fund.


iShares S&P/TSX 60 Index Fund 98.76%(Top 10 investments of the underlying fund)Royal Bank of Canada 8.80%Toronto Dominion 8.04%Bank of Nova Scotia 5.38%Canadian National Railway 4.90%Suncor Energy Inc. 4.13%Bank of Montreal 4.01%BCE Inc. 3.69%Valeant Pharmaceuticals Intl. 3.60%Manulife Financial Corp. 3.27%Enbridge Inc. 3.18%

Cash 1.24%

Total 100.00%





Average return



ivari Canadian Large Cap Index GIF (fund)

2010 2011 2012 2013 20152014-20

-10

0

10

2010.0%

-12.1% -10.7%

4.0%9.3% 8.2%

This chart shows how the fund performed in each of the past 6 years. In the last 6 years, the performance was up in value 4 years and down in value 2 years. Performance will vary year over year.

HOW RISKY IS IT?



moderateModerate

to high






Stock 98.76%Cash 1.24%

81



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Canadian Large Cap Index GIF ivari Guaranteed Investment Funds



75/100 3.43%

82

FUND FACTSivari Guaranteed Investment Fundsivari U.S. Equity Index GIFAll information is as of December 31, 2015

QUICK FACTS


Portfolio turnover rate: 2.28 % Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1026Fund Code: Initial Sales Charge (ISC): TLC1027† Aegon Capital Management Inc. on December 31, 2015


The Fund invests in units of exchange traded funds and/or futures contracts that get their value from the performance of the Standard & Poor’s 500 Index. Money market instruments, such as treasury bills and short-term government and corporate debt securities may also make up the rest of the assets of the Fund.


SPDR S&P 500 ETF Trust 99.50%(Top 10 investments of the underlying fund)Apple Inc 3.26%Microsoft Corp 2.46%Exxon Mobil Corp 1.80%General Electric Co 1.63%Johnson & Johnson 1.58%Amazon.com Inc 1.44%Wells Fargo & Co 1.40%Berkshire Hathaway Inc B 1.37%JPMorgan Chase & Co 1.35%Facebook Inc A 1.32%

Canadian Treasury Bill, 0.49%, May 19, 2016 0.48% Cash 0.02%

Total 100.00%





Average return



ivari U.S. Equity Index GIF (fund)

2010 2011 2012 2013 201520140

10

20

30

40

4.1% 1.7%9.7%

34.1%

18.9% 17.1%

This chart shows how the fund performed in each of the past 6 years. In the last 6 years, the performance was up in value 6 years. Performance will vary year over year.

HOW RISKY IS IT?



moderateModerate

to high







83



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari U.S. Equity Index GIF ivari Guaranteed Investment Funds



75/100 3.43%

84

FUND FACTSivari Guaranteed Investment Fundsivari Global Growth GIFAll information is as of December 31, 2015

QUICK FACTS




The Fund invests primarily in equity and fixed income securities throughout the world. The fund will be managed so that it is prudently diversified among countries, industries and securities.


iShares MSCI EAFE Index Fund 23.62%iShares S&P 500 Index Fund 20.12%iShares S&P/TSX 60 Index Fund 17.56%Powershares QQQ Trust, Series 1 11.98%iShares Russell Midcap Index Fund 10.74%iShares MSCI Japan Index Fund 10.10%iShares DEX Universe Bond Index Fund 4.83%Canadian Treasury Bill, 0.50%, June 16, 2016 0.82%Intrinsyc Software International Inc. 0.14%Cash 0.09%

Total 100.00%





Average return



ivari Global Equity Index – up to November 2, 2012.ivari Global Growth GIF (fund) – post November 2, 2012

2010 2011 2012 2013 20152014

-10

0

10

20

30

2.6%10.1%

21.6%

8.6%4.1%

-6.2%

This chart shows how the fund performed in each of the past 6 years. The fund name and objective changed in November 2012. In the last 6 years, the performance was up in value 5 years and down in value 1 year. Performance will vary year over year.

HOW RISKY IS IT?



moderateModerate

to high







85



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Global Growth GIF ivari Guaranteed Investment Funds



75/100 3.51%

86

FUND FACTSivari Guaranteed Investment Fundsivari CI Conservative GIPAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $21,625Net asset value per unit: $14.25Number of units outstanding: 1,517,536Management expense ratio (MER): 3.10%Portfolio manager: CI Investments Inc.Portfolio turnover rate: 12.17%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1040Fund Code: Initial Sales Charge (ISC): TLC1041




ivari CI Conservative Portfolio


Foresters Asset Management Canadian Bond Pool 33.20%Signature Global Bond Fund 19.80%Cambridge Income Corporate Class 6.70%CI American Value Corporate Class 5.40%Signature Diversified Yield II Fund 5.30%Signature High Income Fund 5.20%Synergy Canadian Corporate Class 3.60%Signature Select Canadian Corporate Class 3.20%Cambridge Global Equity Corporate Class 2.80%Synergy American Corporate Class 2.50%

Total 87.70%





Average return



ivari CI Conservative GIP – imaxxGIF 75/100 (similar class)TOPTM Conservative GIP – up to Sept 21, 2012ivari CI Conservative GIP (fund) – post Sept 21, 2012

-20

-10

0

10

20

2006 2007 2008 2009 2010 2011 2012 2013 20152014

7.0%3.9%6.5%

-1.8%

-14.1%

12.8%

-0.3%

6.4%10.3% 7.7%

This chart shows how the fund or similar class of the same fund performed in each of the past 10 years. The fund name and the underlying fund changed in September 2012. In the last 10 years, the performance was up in value 7 years and down in value 3 years. For illustration purposes. Actual segregated fund performance is expected to vary.

HOW RISKY IS IT?



moderateModerate

to high






Stock 37.20%Bond 56.00%Cash 6.80%

87



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari CI Conservative GIP ivari Guaranteed Investment Funds



75/100 3.10%

88

FUND FACTSivari Guaranteed Investment Fundsivari CI Canadian Balanced GIPAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $27,361Net asset value per unit: $14.09Number of units outstanding: 1,941,979Management expense ratio (MER): 3.23%Portfolio manager: CI Investments Inc.Portfolio turnover rate: 13.16%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1042Fund Code: Initial Sales Charge (ISC): TLC1043




ivari CI Canadian Balanced Portfolio


Foresters Asset Management Canadian Bond Pool 30.30%Signature Canadian Bond Fund 12.20%Signature High Income Fund 8.10%Cambridge Canadian Equity Corporate Class 8.00%Synergy Canadian Corporate Class 6.50%CI American Value Corporate Class 6.20%CI Canadian Investment Coporate Class 6.20%Harbour Corporate Class 5.60%Signature Select Canadian Corporate Class 5.40%Cambridge Income Corporate Class 5.10%

Total 93.60%





Average return



ivari CI Canadian Balanced GIP – imaxxGIF 75/100 (similar class)TOPTM Canadian Balanced GIP – up to Sept 21, 2012ivari CI Canadian Balanced GIP (fund) – post Sept 21, 2012

2007 2008 2009 2010 2011 2012 2013 20152014-30-20-100102030

1.1% 0.2%

-15.3%

18.6%9.0% 6.3% 10.1% 7.8%

-0.9%


HOW RISKY IS IT?



moderateModerate

to high






Stock 48.10%Bond 45.30%Cash 6.60%

89



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari CI Canadian Balanced GIP ivari Guaranteed Investment Funds



75/100 3.23%

90

FUND FACTSivari Guaranteed Investment Fundsivari CI Balanced GIPAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $15,123Net asset value per unit: $14.68Number of units outstanding: 1,030,049Management expense ratio (MER): 3.41%Portfolio manager: CI Investments Inc.Portfolio turnover rate: 7.56% Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1044Fund Code: Initial Sales Charge (ISC): TLC1045




ivari CI Balanced Portfolio


Foresters Asset Management Canadian Bond Pool 21.80%Signature Global Bond Fund 9.90%CI American Value Corporate Class 5.20%Signature Select Canadian Corporate Class 5.20%Cambridge Canadian Equity Corporate Class 4.80%CI International Value Corporate Class 4.50%Signature High Income Fund 4.40%Signature Diversified Yield II Fund 4.40%Signature International Corporate Class 4.30%Cambridge Income Corporate Class 4.30%

Total 68.80%





Average return



ivari CI Balanced GIP – imaxxGIF 75/100 (similar class)TOPTM Balanced GIP – up to Sept 21, 2012ivari CI Balanced GIP (fund) – post Sept 21, 2012

-30-20-100102030

2006 2007 2008 2009 2010 2011 2012 2013 20152014

7.7%3.4%

8.8%

-3.0%

-20.2%

15.2%

-3.8%

7.5%14.6%

8.3%

This chart shows how the fund or or similar class of the same fund performed in each of the past 10 years. The fund name and the underlying fund changed in September 2012. In the last 10 years, the performance was up in value 7 years and down in value 3 years. For illustration purposes. Actual segregated fund performance is expected to vary.

HOW RISKY IS IT?



moderateModerate

to high






Stock 58.30%Bond 34.20%Cash 7.50%

91



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari CI Balanced GIP ivari Guaranteed Investment Funds



75/100 3.41%

92

FUND FACTSivari Guaranteed Investment Fundsivari CI Growth GIPAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $13,998Net asset value per unit: $15.42Number of units outstanding: 907,693Management expense ratio (MER): 3.49%Portfolio manager: CI Investments Inc.Portfolio turnover rate: 9.72%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1046Fund Code: Initial Sales Charge (ISC): TLC1047




ivari CI Growth Portfolio


Foresters Asset Management Canadian Bond Pool 14.70%Cambridge Canadian Equity Corporate Class 7.60%CI American Value Corporate Class 7.00%CI International Value Corporate Class 6.60%Signature Select Canadian Corporate Class 6.60%Signature International Corporate Class 5.80%CI American Managers Corporate Class 5.70%Cambridge Global Equity Corporate Class 5.30%Cambridge American Equity Corporate Class 4.80%Synergy Canadian Corporate Class 4.50%

Total 68.60%





Average return



ivari CI Growth GIP – imaxxGIF 75/100 (similar class)TOPTM Growth GIP – up to Sept 21, 2012ivari CI Growth GIP (fund) – post Sept 21, 2012

-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 20152014

9.1% 3.0%10.8%

-4.8%

-26.2%

20.5%

-6.2%

8.2%20.5%

8.4%


HOW RISKY IS IT?



moderateModerate

to high




This fund may be right for a person who will invest for a medium to long term and wants potential for growth and some income and is comfortable with small to moderate changes in value during the term.


Stock 72.60%Bond 18.00%Cash 9.40%

93



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari CI Growth GIP ivari Guaranteed Investment Funds



75/100 3.49%

94

FUND FACTSivari Guaranteed Investment Fundsivari CI Maximum Growth GIPAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $11,106Net asset value per unit: $15.72Number of units outstanding: 706,484Management expense ratio (MER): 3.76%Portfolio manager: CI Investments Inc.Portfolio turnover rate: 8.56%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1048Fund Code: Initial Sales Charge (ISC): TLC1049




ivari CI Maximum Growth Portfolio


Cambridge Canadian Equity Corporate Class 8.30%Cambridge Global Equity Corporate Class 7.80%CI American Value Corporate Class 7.60%Signature Select Canadian Corporate Class 7.60%CI American Managers Corporate Class 7.10%CI International Value Corporate Class 7.00%Synergy Canadian Corporate Class 6.90%Signature International Corporate Class 6.30%Cambridge American Equity Corporate Class 6.10%Signature Emerging Markets Corporate Class 5.60%

Total 70.30%





Average return



ivari CI Maximum Growth GIP – imaxxGIF 75/100 (similar class)TOPTM Aggressive Growth GIP – up to Sept 21, 2012ivari CI Maximum Growth GIP (fund) – post Sept 21, 2012

-40-2002040

2006 2007 2008 2009 2010 2011 2012 2013 20152014

10.6%14.1%

-5.5%

-33.2%

26.7%

-10.4%

8.8%24.2%

8.6% 3.0%


HOW RISKY IS IT?



moderateModerate

to high






Stock 90.00%Bond 1.80%Cash 8.20%

95



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari CI Maximum Growth GIP ivari Guaranteed Investment Funds



75/100 3.76%

96

FUND FACTSivari Guaranteed Investment Fundsivari Quotential Balanced Income GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $3,315Net asset value per unit: $13.31Number of units outstanding: 249,124Management expense ratio (MER): 3.32%Portfolio manager: Fiduciary Trust Company of CanadaPortfolio turnover rate: 13.30% Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1064Fund Code: Initial Sales Charge (ISC): TLC1065




Franklin Quotential Balanced Income Portfolio


Franklin Bissett Core Plus Bond Fund 29.20%Templeton Global Bond Fund 6.22%Franklin Mutual European Fund 4.98%Franklin Bissett Canadian Equity Fund 4.47%Franklin Strategic Income Fund 4.38%Franklin U.S. Core Equity Fund 4.31%BMO Mid Federal Bond Index ETF 3.98%S&P Depositary Receipt EURO STOXX 50 ETF 3.57%Franklin Bissett All Canadian Focus Fund 3.38%Franklin Flex Cap Growth Fund 3.35%

Total 67.84%





Average return



Franklin Quotential Balanced Income Portfolio (underlying fund – Series A)ivari Quotential Balanced Income GIF (fund)

-30-20-100102030

2006 2007 2008 2009 2010 2011 2012 2013 20152014

8.7% 5.6%7.7%

-0.3%

-18.4%

20.8%

7.4% 4.5% 3.4%

-2.7%


HOW RISKY IS IT?



moderateModerate

to high






Stock 53.20%Bond 37.70%Other 9.10%

97



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Quotential Balanced Income GIF ivari Guaranteed Investment Funds



75/100 3.32%

98

FUND FACTSivari Guaranteed Investment Fundsivari Quotential Balanced Growth GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $8,403Net asset value per unit: $14.13Number of units outstanding: 594,777Management expense ratio (MER): 3.34%Portfolio manager: Fiduciary Trust Company of CanadaPortfolio turnover rate: 8.35%Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1066Fund Code: Initial Sales Charge (ISC): TLC1067




Franklin Quotential Balanced Growth Portfolio


Franklin Bissett Core Plus Bond Fund 19.87%Franklin Mutual European Fund 6.79%Franklin Bissett Canadian Equity Fund 6.11%Franklin U.S. Core Equity Fund 5.89%S&P Depositary Receipt EURO STOXX 50 ETF 4.88%Franklin Bissett All Canadian Focus Fund 4.62%Franklin Flex Cap Growth Fund 4.57%Franklin U.S. Rising Dividends Fund 4.41%Templeton Global Bond Fund 4.24%Franklin Templeton Canadian Large Cap Fund 3.19%

Total 64.57%





Average return



Franklin Quotential Balanced Growth Portfolio (underlying fund – Series A)ivari Quotential Balanced Growth GIF (fund)

-40

-20

0

20

40

2006 2007 2008 2009 2010 2011 2012 2013 20152014

9.9%

-0.2%

-25.4%

25.5%

8.7% 5.3% 4.1%13.6%

6.2%

-5.5%


HOW RISKY IS IT?



moderateModerate

to high







99



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Quotential Balanced Growth GIF ivari Guaranteed Investment Funds



75/100 3.34%

100

FUND FACTSivari Guaranteed Investment Fundsivari Quotential Growth GIFAll information is as of December 31, 2015

QUICK FACTS

Date fund created: October 2009Total fund value (in 000s): $4,558Net asset value per unit: $14.63Number of units outstanding: 311,497Management expense ratio (MER): 3.39%Portfolio manager: Fiduciary Trust Company of CanadaPortfolio turnover rate: 14.82% Minimum initial deposit: $500/Policy ($100/Fund)Fund Code: Deferred Sales Charge (DSC): TLC1070Fund Code: Initial Sales Charge (ISC): TLC1071




Franklin Quotential Growth Portfolio


Franklin Bissett Core Plus Bond Fund 11.40%Franklin U.S. Core Equity Fund 8.31%Franklin Mutual European Fund 8.26%Franklin Bissett Canadian Equity Fund 6.51%Franklin Flex Cap Growth Fund 6.41%Franklin U.S. Rising Dividends Fund 6.20%S&P Depositary Receipt EURO STOXX 50 ETF 5.93%Franklin Bissett All Canadian Focus Fund 4.91%Templeton Asian Growth Fund 3.89%FTIF Franklin Japan Fund 3.88%

Total 65.70%





Average return



Franklin Quotential Growth Portfolio (underlying fund – Series A)ivari Quotential Growth GIF (fund)

-40-2002040

2006 2007 2008 2009 2010 2011 2012 2013 20152014

18.6%6.5% 5.6%

13.3%

-1.3%

-31.1%

27.4%8.8% 6.5%

-8.6%


HOW RISKY IS IT?



moderateModerate

to high







101



Trailing commission






1. Sales charges







3. Other fees











Fee What you pay





ivari Quotential Growth GIF ivari Guaranteed Investment Funds



75/100 3.39%

102

104

The following provides the investment objective and investment policies for the funds available within the ivari GIF Contract.

appendix a – Investment objectives and Investment Policies of the Funds

ivari Guaranteed Investment Fund

Investment objective Investment Policies of the ivari GIF or GIP

Money Market & Fixed Income

ivari Canadian Money Market GIF

The objective of this fund is to make available the capital protection and high-liquidity of the short- term money market in Canada and to earn the highest returns available with minimum exposure to risk.

The investment policy of this fund is to invest in high-quality, low-risk securities, with maturity dates of less than one year, in order to take advantage of the rates of return available in the market. The fund may invest in money market securities including treasury bills, commercial paper (including bank-sponsored asset backed commercial paper (“ABCP”)), bankers’ acceptances, and other debt instruments with remaining terms to maturity of 365 days or less. Investments in bank-sponsored asset-backed commercial paper (ABCP) will not exceed 10% of the fund assets. This fund may invest in Canadian short-term securities issued by the federal and provincial governments, minimum A1 and R1-rated financial institutions and other corporate issuers. All the securities are of investment grade quality. The dollar-weighted average term to-maturity of the securities held by this fund will not exceed 180 days. The fund is currently invested to obtain a minimum and maximum asset mix of 100% in domestic cash & t-bills.

ivari Canadian Bond GIF The objective of this fund is to achieve long-term stable growth through interest income and capital growth by investing primarily in Canadian bonds of varying maturities and in short-term securities.

The investment policy of this fund is to invest primarily in Canadian bonds of varying maturities and in short-term securities. It is intended that the duration of the fund’s portfolio be maintained within a range of plus or minus two years of the duration for the FTSE TMX Canada Universe Bond Index™ or any index which may replace the FTSE TMX Canada Universe Bond Index™. The fund is only invested in securities:

(i) issued by Canadian companies and/or non-Canadian domiciled companies that issue debt in Canada, in Canadian dollars, and traded on Canadian over-the-counter markets; and

(ii) issued by U.S. companies or supranationals up to 30% of the fund’s portfolio.

The investments are in high-quality marketable securities, consisting of government bonds, asset-backed securities and corporate bonds. The portfolio will have an average investment grade credit rating or higher. In order to enhance yield, up to 35% of the Fund’s assets may be invested in below investment grade and un-rated securities. The maximum exposure to a single issuer will be 10% of the market value of the fund’s assets at the time of purchase with the exception of federal and provincial governments and their agencies. No one industry sector will exceed 25% of the market value of the fund’s assets at the time of purchase. This fund does not currently use derivatives but may do so as described under Derivatives and their Permissible use.

ivari TD Income Advantage GIF The objective of this fund is to emphasize income with some potential for capital appreciation by investing in units of the TD Income Advantage Portfolio or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to emphasize income with some potential for capital appreciation. TD Income Advantage Portfolio invests primarily in units of TD mutual funds and may include other mutual funds managed by parties other than TDAM (or affiliates or associates), from time to time, emphasizing mutual funds with income generating potential. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B – Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.tdassetmanagement.com

105

appendix a – Investment objectives and Investment Policies of the Funds continued



Money Market & Fixed Income – continued

ivari Canadian Short-Term Bond GIF

The objective of this fund is to preserve capital and liquidity while generating a high level of income. The fund will be invested in money market and short- term fixed income securities issued by governments, supranational agencies and corporations.

This fund may be invested in Canadian bonds, term deposits, guaranteed investment certificates and other Canadian short- term fixed income securities issued by the following: corporations, federal, provincial, and municipal governments, supranational agencies, asset-backed security trusts, collateralized mortgage-backed security trusts and mortgage-backed security trusts.In regards to the short-term securities issued by corporations, the fund is only invested in securities:

(i) issued by Canadian companies and/or non-Canadian domiciled companies that issue debt in Canada, in Canadian dollars, and traded on Canadian over-the-counter markets; and

(ii) issued by U.S. companies or supranationals up to 15% of the fund’s portfolio.

All the securities will be investment grade quality or better at the time of purchase. The maximum exposure to a single issuer will be 10% of the market value of the fund assets at the time of purchase with the exception of federal and provincial governments and their agencies.

Canadian Balanced

ivari Canadian Balanced GIF The objective of this fund is to achieve long-term stable growth and to maintain a reasonable degree of portfolio diversification to reduce risk by investing in fixed income and equity securities.

The investment policy of this fund is to invest primarily in Canadian securities, but foreign securities may also be included. The fund aims to achieve its investment objective through prudent security selection. The fund is specifically designed to relieve policyholders of the asset mix decision for their portfolios. Investments acquired in respect of this fund are primarily denominated in Canadian dollars but other currencies are also represented. The preferred and common shares are listed on the Toronto Stock Exchange or any other major stock exchange or over-the-counter market. The fixed income securities are available in the over-the-counter market. Securities include fixed income securities (including both corporate and government bonds with an average investment grade credit rating), equities (including common and preferred shares, rights and warrants), and/or Exchange Traded Funds (“ETFs”), derivatives (on a non-leveraged basis), certificates of deposit, cash and short term securities. The fund may invest in securities of non-Canadian domiciled companies that issue debt in Canada, in Canadian dollars, and traded over-the-counter in Canada. The component mix will be regularly adjusted to reflect the potential returns in both the fixed income and equity markets. The maximum exposure to a single issuer will be 10% of the market value of the fund’s assets at the time of purchase with the exception of federal and provincial governments and their agencies. The equity portfolio will always hold less than 10% of the voting securities of an issuer. Portfolio diversification will seek to avoid any undue concentration in one industry. The fund is currently invested to obtain the following asset range minimum of 40% and maximum of 60%, for both equities and fixed income securities.

106




Canadian Balanced – continued

ivari Canadian Fixed Pay GIF The objective of this fund is to provide capital appreciation by investing in units of the imaxx Canadian Fixed Pay Fund or a similar fund.

The investment policy of this fund is to invest all of its net assets primarily in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to provide a consistent stream of monthly income and some capital appreciation by investing in a portfolio of Canadian fixed income, investment trust units and equity investments. The underlying fund’s fundamental investment objectives may not be changed without prior approval of the majority of its investors who vote at a meeting called for that purpose, except when the change is required because of changes in law. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B-Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.imaxxwealth.com

ivari Fidelity Canadian Balanced GIF

The objective of this fund is to provide a high total investment return by investing in units of the Fidelity Canadian Balanced Fund or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to achieve high total investment return. It uses a balanced approach. It invests primarily in a mix of Canadian equity securities, investment grade bonds, high yield securities and money market instruments. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B-Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.fidelity.ca

ivari Fidelity Canadian Asset Allocation GIF

The objective of this fund is to provide a high total investment return by investing in units of the Fidelity Canadian Asset Allocation Fund or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to achieve high total investment return. The underlying fund uses an asset allocation approach. It invests primarily in a mix of Canadian equity securities, fixed-income securities and money market instruments. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B-Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.fidelity.ca

ivari TD Dividend Balanced GIP The objective of this portfolio is to provide long-term stable growth and some interest income by investing in units of underlying TD mutual funds and/or other investments as deemed appropriate by us.

The investment policy of this portfolio is to invest all of its net assets in units of underlying TD mutual funds and/or other investments as deemed appropriate by us. The underlying mutual funds will primarily invest in high-quality, high-yielding equities of Canadian companies and fixed-income securities. The fixed income securities may include non-Canadian and non-investment grade debt instruments. The portfolio’s asset mix will generally be between 35% to 55% in equities and 45% to 65% in fixed income. We may change these targeted mixes and underlying funds at any time to better achieve the investment objective of each GIP. You will not be notified when the GIPs are rebalanced or when an underlying fund and/or its targeted weight is changed. If the change meets the definition of a Fundamental Change, the Fundamental Change Rule in section 14.1 of the Annuity Policy will apply. The Investment Objective/strategies and Strategies of the underlying funds (TD Canadian Core Plus Bond Fund and TD Dividend Growth Fund), can be found in Appendix B.

107



Canadian Balanced – continued

ivari TD Dividend Income GIF The objective of this fund is to provide a high level of after-tax return and capital appreciation by investing in units of the TD Dividend Income Fund or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The fundamental investment objective of the underlying fund is to seek to provide income with capital appreciation as a secondary objective, by investing primarily in income-producing securities. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B – Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.tdassetmanagement.com

Canadian equity

ivari Canadian Equity GIF The objective of this fund is to achieve superior long-term total returns, at moderate risk, through a combination of capital gains and dividend income by investing primarily in Canadian equity securities.

The investment policy of this fund is to invest primarily in equities (such as: common and preferred shares, rights and warrants and/or Exchange Traded Funds (“ETFs”)), although derivatives (on a non-leveraged basis, REITs), cash and short term securities may also be included. The fund will primarily invest in the equities of large cap Canadian companies and where considered appropriate, some medium cap companies. The fund’s portfolio is broadly diversified. The maximum exposure to a single issuer will be 10% of the market value of the fund at the time of the purchase. Portfolio diversification will seek to avoid any undue concentration in any one industry or company. The equity portfolio will always hold less than 10% of the voting securities of an issuer. The investments are primarily Canadian, but foreign securities may also be included. The securities are of companies listed on the Toronto Stock Exchange or any other nationally recognized stock exchange or over-the-counter market.

ivari Canadian Large Cap Index GIF

The objective of this fund is to provide long-term capital growth. The fund seeks to achieve returns similar to a generally recognized index of the large-cap Canadian equity index market, currently being the S&P/TSX 60 Index.

The investment policy of this fund is to provide long-term capital growth through investment in and/or exposure to Canadian equity securities. In attempting to achieve its objective, the fund currently invests in Exchange Traded Funds (ETFs) and/or futures contracts that derive their value from the performance of the S&P/TSX 60 Index*. Money market instruments such as treasury bills and short-term government and corporate debt securities may make up the balance of the assets of the fund. The fund may use derivatives such as options, futures, forward contracts and other instruments that provide exposure to or derive their value from the performance of an index. Investments in derivatives will be made on a non-leveraged basis only. The value of the futures contracts outstanding at any time should closely approximate the value of the cash and short-term securities backing such investment.


108



U.S. equity

ivari U.S. Equity Index GIF The objective of this fund is to provide long-term capital growth. The fund seeks to achieve returns similar to a generally recognized index of the U.S equity market, currently being the S&P 500 Index.

The investment policy of this fund is to provide long-term capital growth through investment in and/or exposure to U.S. equity securities. In attempting to achieve its objective, the fund currently invests in Exchange Traded Funds (ETFs) and/or futures contracts that derive their value from the performance of the Standard & Poor’s 500 Index. Money market instruments such as treasury bills and short-term government and corporate debt securities may make up the balance of the assets of the fund. The fund may use derivatives such as options, futures, forward contracts and other instruments that provide exposure to or derive their value from the performance of an index. Investments in derivatives will be made on a non-leveraged basis only. The value of the futures contracts outstanding at any time should closely approximate the value of the cash and short-term securities backing such investment. The fund does not seek to hedge against changes in currencies.

Global equity

ivari Global Growth GIF The objective of this fund is to achieve long term growth by investing primarily in equity and fixed income securities throughout the world. The fund will be managed so that it is prudently diversified among countries, industries and securities.

This fund may be invested in equities (including common and preferred stock, rights and warrants), trust units, stock index options, futures contracts and other derivative instruments (on a non-leveraged basis), bonds convertible into common stock, and other fixed income securities. The fund may also invest in units of mutual funds, pooled funds and other alternative investments as deemed appropriate by us for hedging purposes. Cash, money market instruments and other short-term securities may also be included. The fund may choose to deviate from its investment objective by temporarily investing most or all of its assets in cash, cash equivalents or fixed income securities during periods of a market downturn or for other reasons. The portfolio manager of the GIF will have the discretion as to whether currency exchange will be hedged or not.

asset allocation Portfolios

ivari CI Conservative GIP The objective of this portfolio is to earn a reasonable level of income, while also providing the opportunity for moderate long-term capital appreciation through investment in a diversified portfolio of income and equity based underlying mutual funds and/or other investments as deemed appropriate by us.

The investment policy of this portfolio is to invest all of its net assets in units of underlying mutual funds and/or other investments as deemed appropriate by us. The target asset allocation of the portfolio is currently 60% income and 40% equity. We may change these targeted mixes and underlying funds at any time to better achieve the investment objective of each GIP. You will not be notified when the GIPs are rebalanced or when an underlying fund and/or its targeted weight is changed. If the change meets the definition of a Fundamental Change, the Fundamental Change Rule in section 14.1 of the Annuity Policy will apply.

ivari CI Canadian Balanced GIP The objective of this portfolio is to earn a reasonable level of income, while also providing the opportunity for moderate long-term capital appreciation through investment in a diversified portfolio of income and equity based underlying mutual funds and/or other investments as deemed appropriate by us.



109



asset allocation Portfolios – continued

ivari CI Balanced GIP The objective of this portfolio is to provide a reasonable balance between growth and income-oriented investments, with a slight bias towards growth funds through investment in a diversified portfolio of income and equity based underlying mutual funds and/or other investments as deemed appropriate by us.


ivari CI Growth GIP The objective of this portfolio is to provide long-term capital appreciation, through investment in a diversified portfolio of primarily growth-oriented funds, but income-oriented funds are of some importance by investing in units of underlying mutual funds and/or other investments as deemed appropriate by us.

The investment policy of this portfolio is to invest all of its net assets in units of underlying mutual funds and other investments as deemed appropriate by the manager. The target asset allocation of the portfolio is currently 25% income and 75% equity. We may change these targeted mixes and underlying funds at any time to better achieve the investment objective of each GIP. You will not be notified when the GIPs are rebalanced or when an underlying fund and/or its targeted weight is changed. If the change meets the definition of a Fundamental Change, the Fundamental Change Rule in section 14.1 of the Annuity Policy will apply.

ivari CI Maximum Growth GIP The objective of this portfolio is to provide long-term capital appreciation, through investment in a diversified portfolio of primarily growth oriented underlying mutual funds and/or other investments as deemed appropriate by us.

The investment policy of this portfolio is to invest all of its net assets in units of underlying mutual funds and/or other investments as deemed appropriate by us. The target asset allocation of the portfolio is currently 100% equity. We may change these targeted mixes and underlying funds at any time to better achieve the investment objective of each GIP. You will not be notified when the GIPs are rebalanced or when an underlying fund and/or its targeted weight is changed. If the change meets the definition of a Fundamental Change, the Fundamental Change Rule in section 14.1 of the Annuity Policy will apply.

ivari Quotential Balanced Income GIF

The objective of this fund is to provide a balance of current income and long-term capital appreciation by investing in units of the Franklin Quotential Balanced Income Portfolio or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to provide a balance of current income and long-term capital appreciation by investing in a diversified mix of equity and income mutual funds, with a bias towards income. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B – Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.franklintempelton.ca

ivari Quotential Balanced Growth GIF

The objective of this fund is to provide a balance of current income and long-term capital appreciation by investing in units of the Franklin Quotential Balanced Growth Portfolio or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to provide a balance of current income and long-term capital appreciation by investing in a diversified mix of equity and income mutual funds, with a bias towards capital appreciation. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B – Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.franklintempelton.ca


110



asset allocation Portfolios – continued

ivari Quotential Growth GIF The objective of this fund is to provide long-term capital appreciation by investing in units of the Franklin Quotential Growth Portfolio or a similar fund.

The investment policy of this fund is to invest all of its net assets in the current underlying fund and/or other investments as deemed appropriate by us. The investment objective of the underlying fund is to provide long-term capital appreciation by investing primarily in a diversified mix of equity mutual funds with additional stability derived from investing in income mutual funds. The Investment Policy/strategies of the underlying fund can be found in the current simplified prospectus and/or financial statement by contacting the mutual fund company (see Appendix B – Underlying Fund Company Information for the address and phone number) or by visiting the following website: www.franklintempelton.ca

* The “S&P TSX 60 Index” is a product of S&P Dow Jones Indices LLC (“SPDJI”) and TSX Inc., and has been licensed for use by ivari. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). TSX® is a registered trademark of TSX Inc. The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by ivari. ivari’s Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, S&P, Dow Jones, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or TSX Inc. or its affiliates (collectively, “TSX”). Neither S&P Dow Jones Indices nor TSX make any representation or warranty, express or implied, to the owners of ivari’s Product(s) or any member of the public regarding the advisability of investing in securities generally or in ivari’s Product(s) particularly or the ability of the S&P TSX 60 Index to track general market performance. S&P Dow Jones Indices’ only relationship to ivari with respect to the S&P TSX 60 Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P TSX 60 Index is determined, composed and calculated by S&P Dow Jones Indices without regard to ivari or ivari’s Product(s). S&P Dow Jones Indices and TSX have no obligation to take the needs of ivari or the owners of ivari’s Product(s) into consideration in determining, composing or calculating the S&P TSX 60 Index. Neither S&P Dow Jones Indices nor TSX are responsible for and have not participated in the determination of the prices, and amount of ivari’s Product(s) or the timing of the issuance or sale of ivari’s Product(s) or in the determination or calculation of the equation by which ivari’s Product(s) is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices and TSX have no obligation or liability in connection with the administration, marketing or trading of ivari’s Product(s). There is no assurance that investment products based on the S&P TSX 60 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC and TSX are not investment advisors. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices or TSX to buy, sell, or hold such security, nor is it considered to be investment advice. NEITHER S&P DOW JONES INDICES NOR TSX GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P TSX 60 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND TSX SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND TSX MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ivari’s, OWNERS OF ivari’s PRODUCT(S), OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P TSX 60 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR TSX BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ivari, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.


111

CI Investments Inc.

ivari CI Conservative Portfolio

Investment objective The objective of this portfolio is to earn a reasonable level of income, while also providing the opportunity for moderate long-term capital appreciation through investment in a diversified portfolio of income and equity based underlying mutual funds and/or other investments as deemed appropriate by us.

Investment Strategies The portfolio advisor uses strategic asset allocation as the principal investment strategy to create a portfolio diversified by investment style, asset class and geographic region. This generally includes Canadian equity, U.S. equity, international equity, Canadian fixed income and global fixed income securities.

In determining the portfolio’s target asset allocations, the portfolio advisor considers, among other factors, each underlying fund’s investment objective and strategies, past performance and historical volatility in the context of a diversified holding of underlying funds suitable for the investment objective of the portfolio.

The target asset allocation of the portfolio is 60% income and 40% equity. We may change these targeted mixes and underlying funds at any time to better achieve the investment objective of each portfolio.

Manager/advisor CI Investments Inc.

Inception date September 2012

ivari CI Balanced Portfolio

Investment objective The objective of this portfolio is to provide a reasonable balance between growth and income-oriented investments, with a slight bias towards growth funds through investment in a diversified portfolio of income and equity based underlying mutual funds and/or other investments as deemed appropriate by us.






The underlying funds of the ivari GIPs have been selected to meet the income and equity mandates of each ivari GIP. In selecting the underlying funds for each ivari GIP, consideration was given to consistency of performance, volatility of the underlying fund, the underlying fund manager’s investment style, strength, history, and risk adjusted performance. Each underlying fund is grouped by its management company. Copies of the

simplified prospectus and/or audited financial statements for the underlying funds may be obtained from each mutual fund company by contacting them directly at their respective address provided below. The investment objective of the underlying mutual fund may not be changed unless approved by the unit holders of the underlying mutual fund. Upon such approval, you will be provided notice of such change.

appendix B – Underlying Funds and Fund Company Information

112

appendix B – Underlying Funds and Fund Company Information continued

CI Investments Inc. continued

ivari CI Canadian Balanced Portfolio

Investment objective The objective of this portfolio is to earn a reasonable level of income, while also providing the opportunity for moderate long-term capital appreciation through investment in a diversified portfolio of income and equity based underlying mutual funds and/or other investments as deemed appropriate by us.






ivari CI Growth Portfolio

Investment objective The objective of this portfolio is to provide long term capital appreciation, through investment in a diversified portfolio of equity funds, but income oriented funds are of some importance by investing in units of underlying mutual funds and/or other investments as deemed appropriate by us.

Investment Strategies The portfolio advisor uses strategic asset allocation as the principal investment strategy to create a portfolio diversified by investment style asset class and geographic region. This generally involves Canadian equity, U.S. equity, international equity, Canadian fixed income and global fixed income securities.





ivari CI Maximum Growth Portfolio

Investment objective The objective of this portfolio is to provide long-term capital appreciation, through investment in a diversified portfolio of underlying equity mutual funds and/or other investments as deemed appropriate by us.

Investment Strategies The portfolio advisor uses strategic asset allocation as the principal investment strategy to create a portfolio diversified by investment style, asset class and geographic region. This generally includes Canadian equity, U.S. equity and international equity securities, as well as high yield corporate bonds.


The target asset allocation of the portfolio is 100% equities. We may change the targeted mixes and underlying funds at any time to better achieve the investment objective of each portfolio.



113


Td asset Management Inc.Td Canadian Core Plus Bond Fund

Investment objective The fundamental investment objective is to seek to earn a high rate of interest income by investing primarily in Canadian dollar-dominated, investment-grade debt instruments. The fund may, from time to time, also seek added value from non- Canadian and/or non-investment- grade debt instruments to enhance total return.

Investment Strategies The portfolio advisor seeks to achieve the fundamental investment objective of the fund by focusing on bonds denominated in Canadian dollars, which may include debt obligations of, or guaranteed by, Canadian federal, provincial or municipal governments, Canadian corporations, or foreign issuers (Maple bonds). In addition, the fund may invest in any one or combination of: global investment- and noninvestment-grade bonds, emerging market debt, debt-like instruments (including investments in loans), and any other debt obligations. The portfolio advisor believes a strategy using rigorous bottom-up security selection in regard to the macro environment will add value and enhance long-term performance.

The fund may use specified derivatives, such as options, futures, forward contracts and swaps, as permitted by Canadian securities laws to, among other things:

• hedge against losses associated with rising interest rates

• gain exposure to fixed income instruments without actually investing in them directly (including when owning the derivative investment is more efficient or less costly than owning the fixed income instrument itself)

• reduce the risk associated with currency fluctuations

• swap credit risk

The fund may hold money market instruments or cash to meet its obligations under the derivative instruments.

The fund may invest in foreign securities to an extent that will vary from time to time but is not typically expected to exceed 30% of its assets at the time that foreign securities are purchased.

The fund may engage in securities lending, repurchase or reverse repurchase transactions in a manner consistent with its investment objectives and as permitted by Canadian securities regulatory authorities. For more information, see Securities lending, repurchase and reverse repurchase transactions in the TD guide to understanding the Fund Profile.

TD may change the fund’s investment strategies at its discretion without notice or approval.

Manager/advisor TD Asset Management Inc.


114

Td asset Management Inc. continued

Td dividend Growth Fund

Investment objective The fundamental investment objective is to provide a high level of after-tax income and steady growth by investing primarily in high-quality, high-yield equity securities and other income- producing instruments of Canadian issuers.

Investment Strategies The portfolio advisor seeks to achieve the fundamental investment objective of the fund by purchasing predominantly large-capitalization common equities that have either an above-average yield or the prospect of an attractive low-risk total return. Equity investments will tend to be concentrated in the financial services, pipeline, and utility sectors of the market, but will also include large-capitalization special situations. Investments in real estate, trusts , bonds, preferred shares and exchange-traded funds may also be held by the fund.

The fund may use specified derivatives, such as options, futures and forward contracts, as permitted by Canadian securities laws to, among other things:

• hedge against losses associated with rising interest rates

• gain exposure to fixed income and equity instruments without actually investing in them directly (including when owning the derivative investment is more efficient or less costly than owning the fixed income or equity instrument itself)

• reduce the risk associated with currency fluctuations

• enhance income

• provide downside risk protection for one or more securities to which the Fund has exposure

The fund may hold money market instruments or cash to meet its obligations under the derivative instruments.

The fund may invest in foreign securities to an extent that will vary from time to time but is not typically expected to exceed 30% of it’s assets at the time that foreign securities are purchased.

The fund may engage in securities lending, repurchase or reverse repurchase transactions in a manner consistent with its investment objectives and as permitted by Canadian securities regulatory authorities. For more information, see Securities lending, repurchase and reverse repurchase transactions in the TD guide to understanding the Fund Profile.

In some market conditions, the fund may invest a portion of its assets in short-term or other debt securities.

TD may change the fund’s investment strategies at its discretion without notice or approval.

Manager/advisor TD Asset Management Inc.



115

All the information about the underlying funds, including their investment objectives is based on information provided by the fund companies.

The relationship of these companies to ivari is outlined in the table below.

If you wish a copy of the simplified prospectus and/or financial statements of any of the underlying funds, please contact the appropriate mutual fund company at the address or phone number listed below.

Underlying Fund Company Information

Investment Management Firm address and Phone number(s) relationship to ivari

Foresters asset Management Inc.

5000 Yonge Street, 8th floorToronto, Ontario M2N 7J8416-883-5800 1-800-983-6439

Not a related company to ivari

Foresters Financial Investment Management Company of Canada Inc.

5000 Yonge Street, 8th floorToronto, Ontario M2N 7J81-866-462-9946


CI Investments Inc.

CI Place2 Queen Street East, 20th FloorToronto, Ontario M5C 3G71-800-268-9374


Fidelity Investments Canada UlC

483 Bay Street, Suite 200Toronto, Ontario M5G 2N71-800-263-4077


Franklin Templeton Investments

5000 Yonge Street, Suite 900Toronto, Ontario M2N 0A71-800-387-0830 English1-800-897-7281 French


Td asset Management Inc.

P.O. Box 100TD Tower, Toronto-Dominion CentreToronto, Ontario M5K 1G81-866-222-3456 English1-800-895-4463 French1-800-387-2828 Asian


116

appendix C – Principal risks of the Funds

Segregated Fund

risksivari

Canadian Money Market GIF

ivari Canadian Bond GIF

ivari Td Income

advantage GIF

ivari Canadian

Balanced GIF

ivari Canadian

Fixed Pay GIF

Cash Risk * * * * *

Capital Depreciation * *

Commodity *

Concentration * *

Credit * * * * *

Depository Receipt

Derivative * * * *

Emerging Markets

Equity * * *

ETF * *

Foreign Currency * * * *

Foreign Investment * * * *

Income Trust & Limited Partnership * *

Index

Interest Rate * * * * *

Large Investor * * * * *

Liquidity * * * * *

Low Rate or Unrated Securities * * *

Mortgage-Backed & Asset Backed Securities * * * *

Multi-Class or Series * * * * *

Municipal Obligation * *

Passive Management

Repurchase & Reverse Repurchase Agreements * * * * *

Securities Lending * * * * *

Small Fund

Small Company

Specialization * *

Short Selling *

Target-Date

Tax Change * * * * *

Tracking *

Underlying Fund * *

The following table lists the principal risks which may be applicable to the underlying investments of the funds. Please refer to “The Risks of Investing in Segregated Funds” in the Information Folder section 8.1.6 for descriptions of these principal risks.

117

appendix C – Principal risks of the Funds continued

Segregated Fund

risksivari

Canadian Short-Term Bond GIF

ivari Fidelity Canadian

Balanced GIF

ivari Fidelity Canadian

asset allocation GIF

ivari Td dividend Balanced GIP

ivari Td dividend Income GIF

ivari Canadian equity GIF

Cash Risk * * * * * *


Commodity * * * * *

Concentration * * * *

Credit * * * * * *

Depository Receipt * *

Derivative * * * * * *

Emerging Markets *

Equity * * * * *

ETF * * * * *

Foreign Currency * * * * *

Foreign Investment * * * * * *

Income Trust & Limited Partnership

* * *

Index

Interest Rate * * * * * *

Large Investor * * * * * *

Liquidity * * * * * *

Low Rate or Unrated Securities * * * *

Mortgage-Backed & Asset Backed Securities

* * * * *

Multi-Class or Series * * * * * *

Municipal Obligation * *

Passive Management

Repurchase & Reverse Repurchase Agreements

* * * * *

Securities Lending * * * * *

Small Fund

Small Company * * *

Specialization * * *

Short Selling

Target-Date

Tax Change * * * * * *

Tracking * * * *

Underlying Fund * * * *

118

Segregated Fund

risksivari

Canadian large Cap Index GIF

ivari U.S. equity Index GIF

ivari Global Growth GIF

ivari CI Conservative

GIP

ivari CI Canadian Balanced GIP

Cash Risk * * * * *


Commodity

Concentration *

Credit * * * * *

Depository Receipt * * *

Derivative * * * * *

Emerging Markets * *

Equity * * * * *

ETF * * *

Foreign Currency * * *

Foreign Investment * * * *

Income Trust & Limited Partnership * *

Index * *

Interest Rate * * * * *

Large Investor * * * * *

Liquidity *

Low Rate or Unrated Securities * * *

Mortgage-Backed & Asset Backed Securities * *

Multi-Class or Series * * * * *

Municipal Obligation * * *

Passive Management * *

Repurchase & Reverse Repurchase Agreements * * *

Securities Lending * * *

Small Fund * * *

Small Company * * *

Specialization * *

Short Selling * *

Target-Date

Tax Change * * * * *

Tracking * * * *

Underlying Fund * *


119


Segregated Fund

risksivari

CI Balanced GIP

ivari CI Growth

GIP

ivari CI Maximum Growth GIP

ivari quotential Balanced

Income GIF

ivari quotential Balanced

Growth GIF

ivari quotential Growth GIF

Cash Risk * * * * * *

Capital Depreciation * * *

Commodity * *

Concentration

Credit * * * * * *

Depository Receipt * * *

Derivative * * * * * *

Emerging Markets * * * * * *

Equity * * * * * *

ETF * * *

Foreign Currency * * * * * *

Foreign Investment * * * * * *

Income Trust & Limited Partnership * * * * * *

Index

Interest Rate * * * * * *

Large Investor * * * * * *

Liquidity * * *

Low Rate or Unrated Securities * * * * * *

Mortgage-Backed & Asset Backed Securities

* * * * * *

Multi-Class or Series * * * * * *

Municipal Obligation * * *

Passive Management * * *

Repurchase & Reverse Repurchase Agreements

* * * * * *

Securities Lending * * * * * *

Small Fund

Small Company * * * * * *

Specialization

Short Selling * * *

Target-Date

Tax Change * * * * * *

Tracking * * * * * *

Underlying Fund * * * * * *

120

appendix d – ivari Guaranteed Investment Fund Fees

Fund Fees

The following table lists the Fund codes, Annual Fund Management Fee*, the Current Insurance Fee, the Maximum Insurance Fee** and the Management Expense Ratio***.

ivari GIF Segregated Fund nameFund Codes

annual Fund Management

Fee*

Current Insurance

Fee

Maximum Insurance

Fee**

Management expense ratio

(Mer)***dSC ISC Fees do not include applicable taxes

Money Market & Fixed Income

ivari Canadian Money Market GIF TLC1000 TLC1001 1.15% 0.05% 0.55% 0.75%

ivari Canadian Bond GIF TLC1002 TLC1003 1.50% 0.20% 0.70% 2.27%

ivari TD Income Advantage GIF TLC1056 TLC1057 2.10% 0.30% 0.80% 3.07%

ivari Canadian Short-Term Bond GIF TLC1100 TLC1101 1.25% 0.10% 0.60% 1.92%

Canadian Balanced

ivari Canadian Balanced GIF TLC1004 TLC1005 1.80% 0.55% 1.05% 3.00%

ivari Canadian Fixed Pay GIF TLC1012 TLC1013 2.05% 0.70% 1.20% 3.39%

ivari Fidelity Canadian Balanced GIF TLC1086 TLC1087 2.10% 0.60% 1.10% 3.40%

ivari Fidelity Canadian Asset Allocation GIF TLC1092 TLC1093 2.15% 0.60% 1.10% 3.48%

ivari TD Dividend Balanced GIP TLC1058 TLC1059 2.10% 0.40% 0.90% 3.15%

ivari TD Dividend Income GIF TLC1062 TLC1063 2.10% 0.70% 1.20% 3.45%

Canadian equity

ivari Canadian Equity GIF TLC1014 TLC1015 2.00% 0.80% 1.30% 3.50%

ivari Canadian Large Cap Index GIF TLC1024 TLC1025 1.90% 0.85% 1.35% 3.43%

U.S. equity

ivari U.S. Equity Index GIF TLC1026 TLC1027 1.90% 0.85% 1.35% 3.43%

Global equity

ivari Global Growth GIF TLC1028 TLC1029 1.92% 0.90% 1.40% 3.51%

asset allocation Portfolios

ivari CI Conservative GIP TLC1040 TLC1041 2.10% 0.40% 0.90% 3.10%

ivari CI Canadian Balanced GIP TLC1042 TLC1043 2.10% 0.45% 0.95% 3.23%

ivari CI Balanced GIP TLC1044 TLC1045 2.20% 0.55% 1.05% 3.41%

ivari CI Growth GIP TLC1046 TLC1047 2.20% 0.60% 1.10% 3.49%

ivari CI Maximum Growth GIP TLC1048 TLC1049 2.25% 0.80% 1.30% 3.76%

ivari Quotential Balanced Income GIF TLC1064 TLC1065 2.18% 0.50% 1.00% 3.32%

ivari Quotential Balanced Growth GIF TLC1066 TLC1067 2.18% 0.55% 1.05% 3.34%

ivari Quotential Growth GIF TLC1070 TLC1071 2.18% 0.60% 1.10% 3.39%

* Subject to the fundamental change rule we may change the management fee for any fund by sending you written notice of the change at least 60 days in advance. Please see section 14.2 Fundamental Changes and Other Changes of the Information Folder for more information.

** We may change the insurance fee amount of a fund up to the maximum insurance fee of the fund without prior notification. We will let you know annually if any such increase occurs. If the maximum insurance fee of the fund is increased, we will provide you with at least 60 days advance notice and you will have the rights outlined under section 14.2 Fundamental Changes and Other Changes of the Information Folder.

*** Management expense ratios are based on the December 31, 2015 values and are compromised of the current management fee, the current insurance fee, the previous year’s actual annualized operating expenses including applicable taxes. MERs for 2016 will be available on our website (www.ivari .ca) or upon request when the 2016 annual financial statements are published.

NOTES

NOTES

TM ivari and the ivari logos are trademarks of ivari Canada ULC. ivari is licensed to use such marks.

500-5000 Yonge Street, Toronto, ON M2N 7J8 • Telephone: 1-800-846-5970 • Fax: 1-800-661-7296

Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value.

IP1300 10/16ivari.ca

Documents

ivariTM Guaranteed Investment Fundsivari.ca/files/IP1300.pdf · HoW To read an ivari GIF FUnd FaCTS..... 55 Table of Contents continued. vii MonearY M KeT and FIxed InCoMe ivari