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Savings and Investments

La Capitale Investment Accounts

Agent’s Guide

Contents

1 Fact Sheet

2 Benefits of Investing in La Capitale Investment Accounts

3 Product Information

4 Profile of Investment and Management Companies

5 Fixed Income6 Canadian Bond Index

7 Canadian Fixed Income (AGF)

9 Balanced10 Canadian Balanced (Dynamic)

11 Canadian Balanced (Fidelity)

12 Global Balanced (AGF)

13 Diversified Income (Fidelity)

14 Diversified Income (Dynamic)

15 Canadian Equity16 Canadian Equity Index

17 Canadian Dividend (AGF)

18 Canadian Dividend (Fidelity)

19 Canadian Equity Income (Dynamic)

20 Canadian Equity (Dynamic)

21 Canadian Equity (Fidelity)

22 Small Capitalization Canadian Equity (Dynamic)

23 Low Volatility Canadian Equity (TDAM)

25 U.S. and International Equity26 American Equity Index

27 International Equity Index

28 American Equity (Dynamic)

29 Global Equity (Dynamic)

30 Global Equity – Discovery (Dynamic)

31 Low Volatility Global Equity (TDAM)

32 Emerging Markets (AGF)

33 Portfolio34 Conservative Profile (NBSI)

35 Moderate Profile (NBSI)

36 Balanced Profile (NBSI)

37 Growth Profile (NBSI) 38 Aggressive Profile (NBSI)

39 Investor Profiles

40 In Brief

La CapitaLe investment aCCounts | agent’s guide 1

DescriptionLa Capitale Investment Accounts are similar to mutual funds. La Capitale offers a wide range of investment accounts, in five main categories:

Types of account available

Fixed Income Market Index or Underlying FundManagement

Fees1

MER of Underlying Fund2

Canadian Bond Index DEX Universe Bond Index3 1.75% 0%

Canadian Fixed Income (AGF) AGF Fixed Income Plus Fund, MF Series 0% 1.95%

Balanced Underlying FundManagement

Fees1, 3


Canadian Balanced (Dynamic) Dynamic Value Balanced Fund, Series A 0% 2.41%

Canadian Balanced (Fidelity) Fidelity Canadian Balanced Fund, Series A 0% 2.31%

Global Balanced (AGF) AGF World Balanced Fund, MF Series 0% 2.61%

Diversified Income (Fidelity) Fidelity Monthly Income Fund, Series A 0% 2.32%

Diversified Income (Dynamic) Dynamic Strategic Yield Fund, Series A 0% 2.28%

Canadian Equity Market Index or Underlying FundManagement

Fees1


Canadian Equity Index S&P/TSX 60,4 Canadian Index 1.85% 0%

Canadian Dividend (AGF) AGF Dividend Income Fund, MF Series 0% 2.20%

Canadian Dividend (Fidelity) Fidelity Dividend Fund, Series A 0% 2.35%

Canadian Equity Income (Dynamic) Dynamic Equity Income Fund, Series A 0% 2.17%

Canadian Equity (Dynamic) Dynamic Value Fund of Canada, Series A 0% 2.39%

Canadian Equity (Fidelity) Fidelity Canadian Disciplined Equity Fund, Series A 0% 2.51%

Small Capitalization Canadian Equity (Dynamic)

Dynamic Small Business Fund, Series A 0% 2.75%

Low Volatility Canadian Equity (TDAM) TD Emerald Low Volatility Canadian Equity PFT5 2.40% 0%

U.S. and International Equity Market Index or Underlying FundManagement

Fees1


American Equity Index S&P 500,4 American Index 1.85% 0%

International Equity Index MSCI EAFE,6 International Index 2.30% 0%

American Equity (Dynamic) Dynamic American Value Fund, Series A 0% 2.45%

Global Equity (Dynamic) Dynamic Global Value Fund, Series A 0% 2.46%

Global Equity – Discovery (Dynamic) Dynamic Global Discovery Fund, Series A 0% 2.76%

Low Volatility Global Equity (TDAM) TD Emerald Low Volatility All World Equity PFT5 2.50% 0%

Emerging Markets (AGF) AGF Emerging Markets Fund, MF Series 0% 3.11%

Portfolio Underlying PortfolioManagement

Fees1


Conservative Profile (NBSI) Meritage Conservative Income Portfolio, Advisor Series 0% 2.10%

Moderate Profile (NBSI) Meritage Moderate Income Portfolio, Advisor Series 0% 2.19%

Balanced Profile (NBSI) Meritage Balanced Income Portfolio, Advisor Series 0% 2.38%

Growth Profile (NBSI) Meritage Growth Income Portfolio, Advisor Series 0% 2.47%

Aggressive Profile (NBSI) Meritage Equity Income Portfolio, Advisor Series 0% 2.73%

Fact Sheet

1. Management fees charged by the insurer are not guaranteed.

2. Represents management expense ratio of underlying fund.

3. This index was formerly named the Scotia Capital Universe Bond Index, a trademark of the Bank of Nova Scotia.

4. “Standard & Poor’sTM”, “S&PTM”, “S&P 500TM” “Standard & Poor’s 500” and “500” are trademarks of Standard and Poor’s. “TSX” is a trademark of The Toronto Stock Exchange. These marks have been licensed for use by La Capitale Civil Service Insurer Inc. and its affiliates. These investment accounts are not sponsored, endorsed, sold or promoted by Standard & Poor’s or The Toronto Stock Exchange and neither party makes any representation, warranty, or condition regarding the advisabilityof investing in these investment accounts.

5. Pooled fund trust6. The investment account referred to herein is not sponsored, endorsed, sold or promoted by MSCITM, and MSCITM bears no liability with respect to the account or any index on which

the investment account is based. The investment certificate contains a more detailed description of the limited relationship MSCITM has with La Capitale Civil Service Insurer Inc., its affiliates and this account.

2

+Benefits of Investing in La Capitale Investment Accounts

■■ Long-term capital growth potential

■■ Just one account statement showing all investments at La Capitale, with the option to view account balances online

■■ Access to the largest and most liquid companies on the market with just one account

■■ Contributions covered by Assuris up to $100,000

■■ Guaranteed death benefit: 100% of contributions made up to age 75

■■ Option to designate a beneficiary


Type of contract Registered contract (TFSA, RRSP, RRIF, LIRA and LIF)

Age at issue Minimum age at issue: 18 years

Minimum investment ■■ $500 minimum initial investment per investment account■■ Subsequent investments: Minimum $100 per investment account

Maturity date Upon death of contractholder

Guaranteed death benefit Amounts invested are not guaranteed, except in the event of the contractholder’s death. In the event of the contractholder’s death, La Capitale guarantees the highest of the following amounts for all investment accounts held by the client: ■■ The balance of the accounts on the date of death; or■■ 100% of the sums invested in these accounts prior to age 75, adjusted proportionately to any reduction in the total value of the accounts at the time of redemption of units, determined on the date of the redemption

Liquidity Redeemable at any time (subject to redemption fees, if applicable): ■■ $100 minimum redemption■■ Eligible for withdrawal under the HBP

Fee option

FRonT-LoAd FEES Low-LoAd FEES BACk-End LoAd FEES

Payable fees Payable fees Payable fees

Up to 5% of the amount invested Redemption of units:

Year 1 3.00%

Year 2 2.50%

Year 3 2.00%

Thereafter 0.00%

Redemption of units:

Year 1 6.00%

Year 2 5.50%

Year 3 5.00%

Year 4 4.50%

Year 5 3.00%

Year 6 1.50%

Thereafter 0.00%

Terms Terms

■■ The applicable fee rate is negotiated between the client and the Financial Security Advisor.

■■ Purchase fees are deducted from the amount invested, and the advisor will receive a portion of these as commission.

■■ An investment account with purchase fees may be transferred at no charge to another account with purchase fees, provided the minimum investment requirements are respected.

■■ Redemption fees are deducted from the redeemed product, as necessary.■■ When the client purchases units, La Capitale pays the advisor a commission. The redemption fees you pay go to La Capitale.

■■ Each calendar year, the client may sell, without penalty, up to 10% of the market value of the investment account as at December 31 of the previous year plus 10% of new deposits made during the calendar year (non-cumulative right).

■■ An investment account with redemption fees may be transferred at no charge to another investment account with redemption fees: – Provided the minimum investment requirements are respected– Amounts transferred maintain their initial transaction dates for purposes

of calculating the redemption fees.

Details

AvAILABLE FoR PERIodIC PURChASE

■■ Benefit from dollar-cost averaging by taking advantage of fluctuations in the unit price

■■ Build up your RRSP contribution gradually without stretching your budget

■■ Preauthorized bank payment: Every 14 days or monthly

■■ Minimum annual investment of $500 per investment account. However, if preauthorized payments are selected as the method of payment, funds can be deposited in more than one investment account.

Product Information

4 La CapitaLe investment aCCounts | agent’s guide

La Capitale is proud to have chosen four investment management companies that are renowned across Canada for their performance, stability and reputation.

Dynamic Company ProfileTracing its roots back more than 50 years, Dynamic Funds is a leading investment management firm offering a full spectrum of investment solutions. Its multi-award winning fund family offers a lineup of over 80 funds supported by a robust team of industry-leading portfolio managers.

National Bank Securities ProfileNational Bank Securities Inc. (NBSI) is a National Bank affiliate specializing in the creation and management of mutual funds. NBSI offers a wide range of investment solutions designed for diverse investor profiles. In its capacity as the investment fund manager of certain mutual funds, NBSI has over $16 billion in assets under management.

AGF Company ProfileAGF is a leading independent global asset management firm with offices in Toronto, Dublin, Singapore and Beijing. Founded in 1957 and with approximately $36 billion in assets under management, AGF serves more than one million investors with offerings across the wealth continuum. Four principles anchor our firm’s approach to investing: shared intelligence, disciplined processes, innovative thinking and a people-first culture.

Fidelity Investments Company ProfileFidelity Investments Canada ULC is ranked amongst the largest mutual fund companies in Canada and part of the Fidelity Investments organization of Boston, one of the largest providers of financial services. In Canada, Fidelity manages a total of $74 billion in mutual fund and institutional assets (as at June 30, 2013). This includes $15 billion in assets for institutional clients including public and corporate defined benefit pension plans, endowments, foundations and other corporate assets on behalf of clients across Canada.

Fidelity Canada provides Canadian investors a full range of domestic, international and income oriented mutual funds. Fidelity funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies. Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and we are dedicated to helping young Canadians realize their full potential as productive, responsible and caring citizens.

TD Asset Management Company ProfileTD Asset Management is a North American investment management firm with leading market positions in passive, quantitative, enhanced and active portfolio management. Serving a large and diversified client base including pension funds, corporations, institutions, endowments, foundations and high-net-worth individuals. We also offer private money management services and fixed income and short-term liquidity funds. In addition, we manage retail mutual funds in both Canada and the U.S.

Profile of Investment and Management Companies


Investment Accounts

Fixed Income


Returns for this account are based on the dEX Universe Bond Index,1 which consists of a broadly-diversified range of investment-grade Government of Canada bonds and provincial, municipal and corporate bonds issued in Canada with a term to maturity of more than one year. The index was designed to reflect the overall performance of the Canadian bond market.

PERFoRMAnCE2

Annual compound returns (%)3

3 months 6 months 1 year 3 years 5 years 10 years

–2.9 –3.2 –2.8 1.8 3.3 3.6

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

1.8 7.8 4.9 3.6 4.6 1.9 2.3

CoMPoSITIon oF dEX UnIvERSE Bond IndEX

Asset mix %

■ Government of Canada Bonds 39.3■ Provincial Bonds 29.6■ Corporate Bonds 29.4■ Municipal Bonds 1.7

By term %

■ Short term (1 to 5 years) 45.1■ Long term (10 years and longer) 28.3■ Mid term (5 to 10 years) 26.6

Canadian Bond IndexAs at August 31, 2013

1. This index was formerly named the Scotia Capital Universe Bond Index, a trademark of the Bank of Nova Scotia.

2. – The returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by the Canadian Bond Index Investment Account if it had existed during the periods shown.

– Past performance does not guarantee future results.

– The returns shown are net of management fees.3. Simple return for period of less than one year.4. Management fees charged by the insurer are not

guaranteed.5. Certain conditions apply.

ACCoUnT dETAILS

■■ Asset Category Canadian Fixed Income

■■ Management Style Index

■■ Management Fees4 1.75%

■■ Risk Tolerance

Low Moderate High

GUARAnTEES PRovIdEd By InvESTMEnT ACCoUnTS

■■ Capital 100% guaranteed in the event of death5

■■ Contributions covered by Assuris up to $100,000 per type of contract

7La CapitaLe investment aCCounts | agent’s guide

1. Investing in this account is not the same as purchasing units of this fund and does not confer any rights in the fund.

2. Past performance does not guarantee future results. The returns shown are net of management fees.

3. Simple return for period of less than one year.4. Represents management expense ratio of

underlying fund. Management fees may also be charged to the account by the insurer. These fees are not guaranteed.

5. Certain conditions apply.

UndERLyInG FUnd dETAILS

■■ Portfolio Manager Hugh McCauley, MBA, CFA David Stonehouse, MBA, CFA Warren Fenton, CFA Martin Grosskopf, MBA, MES

■■ Asset Category Canadian Fixed Income

■■ Management Style Interest Rate Anticipation

■■ Inception November 1998

■■ Total value $293.0 million

■■ MER4 1.95%


Low Moderate High




The Canadian Fixed Income (AGF) investment account mirrors the performance of the following underlying fund:1 AGF Fixed Income Plus Fund, MF Series.

InvESTMEnT oBjECTIvE And STRATEGIES

The investment objective of the AGF Fixed Income Plus Fund is to provide steady income to investors by investing primarily in fixed-income securities.

The Fund invests primarily in high-quality Canadian government and corporate fixed income securities with maturities in excess of one year.

The Fund looks for government or corporate securities with a history of steady interest or distribution payouts. These securities have the ability to sustain the payouts for reasonable period of time and are favourably priced with respect to these payouts for a reasonable expectations.

FUnd PERFoRMAnCE2


3 months 6 months 1 year 3 years 5 years 10 years Inception

–2.8 –2.7 –1.4 2.7 3.8 4.2 4.6

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

4.0 5.8 6.2 7.7 0.1 1.8 –0.2

FUnd CoMPoSITIon

Asset mix %

■ Corporate 53.7■ Government /

Government sponsored 45.6■ Other 0.5■■■ Collateralized 0.2

Canadian Fixed Income (AGF)As at August 31, 2013


Investment Accounts

Balanced

La CapitaLe investment aCCounts | agent’s guide10

Canadian Balanced (Dynamic)As at August 31, 2013

The Canadian Balanced (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic value Balanced Fund, Series A.

InvESTMEnT oBjECTIvES And STRATEGIES

The Dynamic Value Balanced Fund seeks to achieve a high level of interest and dividend income and long-term capital appreciation by investing primarily in Canadian equity securities and debt obligations, including corporate bonds that are rated below investment grade. The Fund’s total return is obtained by a combination of income-producing securities, as well as investments in equity securities that will achieve capital growth over the long term. The investments of the Fund are primarily Canadian fixed-income investments and common shares. The levels of fixed-income and equity securities will vary, depending on the Fund’s assessment of economic and market factors. Investment analysis for the equity component of this Fund follows a bottom-up approach, which emphasizes careful company-specific analysis. Using a value investment approach, this Fund invests in companies that represent good value based on current stock price relative to the company’s intrinsic value.

FUnd PERFoRMAnCE2



0.5 4.2 14.4 4.7 3.5 7.8 7.8

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

7.8 –12.1 12.0 40.4 –21.2 –0.8 12.1

FUnd CoMPoSITIon

Top 10 holdings %

1. Dynamic High Yield Bond Fund, Series “O” 4,6

2. Mednax, Inc. 3,33. CGI Group Inc., Class “A” 2,64. MacDonald, Dettwiler

and Associates Ltd. 2,15. Paramount Resources Ltd., Class “A” 2,16. Hologic, Inc. 1,97. Baxter International Inc. 1,98. Banque de Nouvelle-Écosse 1,79. Rogers Communications Inc., Class “B” 1,510. Catamaran Corporation 1,3

Total number of holdings 184

The Top 10 holdings represent 23.0% of the Fund.







■■ Portfolio Manager

Cecilia Mo, MBA Domenic Bellissimo, MBA, CFA

■■ Asset Category Global Neutral Balanced

■■ Management Style Value

■■ Inception February 1992

■■ Total value $1,660.1 million

■■ MER4 2.41%


Low Moderate High




Asset mix %

■ Canadian Equities 26.3■ U.S. Equity 25.6■ Canadian Bonds 16.1■ Cash & Other 11.6■ Foreign Bonds 8.4■■ Mutual Funds – Canadian Income 4.6■ Federal Government Bonds – Canada 3.9■ Foreign Equities 2.5■ Canadian – Foreign Pay Bonds 1.0

Sector allocation (Stocks) %

■ Health Care 14.2■ Industrial 8.1■ Energy 7.3■ Information Technology 7.3■ Financial Services 6.5■ Consumer Discretionary 4.6■ Raw Materials 2.7■ Telecommunications 2.2■■■ Consumer Staples 1.5


Canadian Balanced (Fidelity)As at August 31, 2013








Mariana Egan Geoffrey Stein

■■ Asset Category Canadian Neutral Balanced

■■ Management Style Growth

■■ Inception September 1998

■■ Total value $6,492 million

■■ MER4 2.31%


Low Moderate High




The Canadian Balanced (Fidelity) investment account mirrors the performance of the following underlying fund:1 Fidelity Canadian Balanced Fund, Series A.


This Fund aims to achieve high total investment return by means of a balanced approach.It invest primarily in a mix of Canadian equity securities, investment grade bonds, high yield securities and money market instruments.

When buying and selling securities for the equity portion of the Fund, the Portfolio Manager examines each company’s potential for success in light of its current financial condition, its industry position and economic and market conditions. The Portfolio Manager considers factors like growth potential, earnings estimates and quality of management.

The Portfolio Manager generally manages the domestic fixed-income portion of the Fund to have similar overall interest rate risk to the index.When buying and selling fixed-income securities, the Portfolio Manager analyzes the security’s features, its current price compared to its estimated long-term value, the credit quality of the issuer and any short-term trading opportunities resulting from market inefficiencies.

FUnd PERFoRMAnCE2



0.6 2.6 7.7 6.0 4.0 6.8 7.7

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

5.8 –1.3 13.1 22.0 –18.9 7.8 10.3

FUnd CoMPoSITIon(as at June 30, 2013)

Top 10 holdings

1. Royal Bank of Canada

2. Toronto-Dominion Bank

3. Valeant Pharmaceuticals

4. Alimentation Couche-Tard (Cl. B, Sub Vtg)

5. Magna International

6. Canadian Pacific Railway

7. Gildan Activewear Inc

8. Manulife

9. Sun Life Financial

10. Cenovus Energy

Total number of holdings 1,021


Asset mix %

■ Canadian Equities 41.1■ Canadian Bonds 36.6■ Foreign Bonds 10.3■ Foreign Equities 9.5■ Cash & Other 2.6


■ Financial Services 17.1■ Consumer Discretionary 7.6■ Raw Materials 6.2■ Health Care 5.0■ Industrial 4.8■ Consumer Staples 4.6■ Energy 3.6■ Information Technology 1.2








■■ Portfolio Manager Rory Flynn, CFA Jean Charbonneau, MBA

■■ Asset Category Global Balanced


■■ Inception June 1988


■■ MER4 2.61%


Low Moderate High




The Global Balanced (AGF) investment account mirrors the performance of the following underlying fund:1 AGF world Balanced Fund, MF Series.


The AGF World Balanced Fund seeks to provide superior returns with moderate risk through a combination of capital appreciation and interest income. The Fund uses an asset allocation approach. It invests primarily in a mix of shares of companies in countries and industries that are expected to have superior growth, bonds and short-term money market instruments.

The Fund uses a bottom-up value based investment style to select stocks that appear to be trading at a discount to their estimated fair value.

The Fund uses an asset allocation approach to adjust its holdings among stocks, bonds and money market instruments. The portfolio’s targeted ex-cash “neutral” weighting is 70% stocks and 30% bonds.

FUnd PERFoRMAnCE2



0.4 5.4 20.0 5.5 –1.1 — 1.8

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

15.7 –8.9 –5.5 11.2 –31.6 –9.1 26.7

FUnd CoMPoSITIon

Top 10 holdings %

1. Bank of America Corp. 3,02. BNP Paribas SA 2,93. Conocophillips 2,94. AT&T Inc. 2,95. Merck & Co. Inc. 2,86. Itochu Corp. 2,87. JPMorgan Chase and Co. 2,78. Kingfisher PLC 2,79. Société Générale SA 2,610. AXA SA 2,4



Global Balanced (AGF)As at August 31, 2013

Asset Mix %

■ Foreign Equities 44.5■ U.S. Equity 27.7■ Foreign Bonds 12.3■ U.S. Fixed Income 7.4■ Canadian Bonds 5.6■ Cash & Other 2.5


■ Financial Services 35.5■ Energy 11.6■ Health Care 10.9■ Consumer Discretionary 9.4■ Telecommunications 9.2■ Raw Materials 8.6■ Industrial 8.1■ Information Technology 2.8■ Consumer Staples 1.9■ Utilities 1.9




Geoffrey Stein Derek Young

■■ Asset Category Canadian Neutral Balanced




■■ MER4 2.32%


Low Moderate High




diversified Income (Fidelity)As at August 31, 2013

The Diversified Income (Fidelity) investment account mirrors the performance of the following underlying fund:1 Fidelity Monthly Income Fund, Series A.


This Fund aims to achieve a combination of a steady flow of income and the potential for capital gains. It invests, either directly or through investments in units of other funds, primarily in a mix of Canadian equity securities, Canadian fixed-income securities, U.S. commercial mortgage-backed securities, and U.S. higher yielding, lower quality fixed income securities, preferred stocks and convertible securities.

The Fund’s neutral mix is 50% exposure to equity securities and 50% exposure to fixed-income securities. These securities may be either Canadian or foreign. The neutral mix is a guideline and can change in reaction to, or in anticipation of, market changes. The Fund’s exposure to equity and fixed-income securities may vary by up to +/– 20% from the neutral mix.

FUnd PERFoRMAnCE2



–0.4 2.7 9.1 8.3 6.6 — 7.9

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

6.9 6.0 11.6 28.3 –19.2 3.4 —


Top 10 holdings

1. Shoppers Drug Mart

2. Hewlett-Packard

3. Microsoft

4. NV Energy

5. National Bank of Canada

6. Vivendi

7. Dell

8. Fairfax Financial Holdings (Sub Vtg)

9. BP

10. Vodafone Group

Total number of holdings 2,275


Asset mix %

■ Canadian Bonds 27.0■ Canadian Equities 23.7■ Foreign Equities 20.4■ Foreign Bonds 17.3■ Cash & Other 6.3■ Convertibles 5.2


■ Financial Services 9.4■ Information Technology 8.1■ Consumer Staples 7.0■ Energy 5.1■ Health Care 4.6■ Industrial 4.4■ Telecommunications 4.0■ Utilities 3.4■ Consumer Discretionary 2.9




Oscar Belaiche, HBA, FICB, CFA Michael McHugh, BA (Hons.), MA, CFA

■■ Asset Category Canadian Equity Balanced

■■ Management Style Blend

■■ Inception March 2009


■■ MER4 2.28%


Low Moderate High




diversified Income (Dynamic)As at August 31, 2013

The Diversified Income (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic Strategic yield Fund, Series A.


Dynamic Strategic Yield Fund seeks to acheive high income and long-term capital growth by investing in a diversified portfolio of fixed income and income-oriented equity securities.

The Fund will take a flexible approach to investing primarily in debt and income-oriented equity securities with no restrictions on market capitalization, industry sector or geographic mix. The allocations will depend on economic and market conditions, allowing the portfolio advisor to focus on the most attractive asset classes.

FUnd PERFoRMAnCE2



–1.8 –0.9 4.5 6.7 — — 13.2

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

5.3 7.2 13.3 — — — —

FUnd CoMPoSITIon

Top 10 holdings


2. Bank of Nova Scotia

3. Inter Pipeline Fund, L.P., Class “A”

4. Comcast Corporation, Class “A”

5. Crescent Point Energy Corp.

6. Enbridge Inc.

7. LyondellBasell Industries NV, Class “A”

8. Pembina Pipeline Corporation

9. TransCanada Corporation

10. Dynamic High Yield Bond Fund, Series “O”



Asset mix %

■ Canadian Equities 32.4■ U.S. Equity 15.0■ Canadian Bonds 10.8■ Cash & Other 9.1■ Dynamic High Yield Bond Fund,

Series “O” 6.5■ Alternative Investments 6.4 ■ Foreign Bonds 6.2■ High Yield Bonds 5.1■ Foreign Equities 3.1■ Real Estate Investments Trusts 3.1


■ Energy Infrastructure 17.4■ Financial Services 13.0■ Real Estate 12.4■ Energy 9.4■ Telecommunications 7.1■ Utilities 5.5■ Industrial 4.7■ Consumer Discretionary 4.6■ Raw Materials 3.5■ Consumer Staples 2.7


Investment Accounts

Canadian Equity


1. “Standard & Poor’sTM” and “S&PTM” are trademarks of Standard and Poor’s. “TSX” is a trademark of The Toronto Stock Exchange. These marks have been licensed for use by La Capitale Civil Service Insurer Inc. and its affiliates. These investment accounts are not sponsored, endorsed, sold or promoted by Standard & Poor’s or The Toronto Stock Exchange and neither party makes any representation, warranty, or condition regarding the advisability of investing in these investment accounts.

2. The return credited is the total return generated by the index, including dividends, less management fees.

3. – The returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by the Canadian Equity Index Investment Account if it had existed during the periods shown.




ACCoUnT dETAILS

■■ Asset Category Canadian Equity




Low Moderate High




Returns for this account are based on the S&P/TSX 601, 2 Canadian Index, which is a selection of 60 stocks chosen from the largest companies listed on the Toronto Stock Exchange (TSX) in terms of market capitalization and liquidity (as determined by trading volume). The companies are national and multinational firms that are leaders in their fields.

PERFoRMAnCE3



0.5 –0.8 7.8 3.1 –1.1 6.2

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

6.1 –9.6 11.8 29.5 –33.3 9.1 17.0

CoMPoSITIon oF S&P/TSX 60

Top 10 holdings %

1. Royal Bank of Canada 6.22. Toronto-Dominion Bank 5.43. Bank of Nova Scotia 4.64. Suncor Energy Inc. 3.55. Bank of Montreal 2.86. Canadian National Railways 2.77. Enbridge Inc. 2.38. Canadian Natural Resources Limited 2.39. BCE Inc. 2.210. Canadian Imperial Bank of Commerce 2.2


The Top 10 holdings represent 34.2% of the S&P/TSX 60.

Canadian Equity IndexAs at August 31, 2013

Sector allocation %

■ Financial Services 34.2■ Energy 24.8■ Raw Materials 13.7■ Industrial 6.9■ Consumer Discretionary 5.5■ Telecommunications 5.0■ Consumer Staples 3.2■ Health Care 3.0 ■ Utilities 1.8■■ Information Technology 1.6








■■ Portfolio Manager Marc-André Robitaille, CFA

■■ Asset Category Canadian Dividend and Income Equity


■■ Inception April 2003


■■ MER4 2.20%


Low Moderate High




The Canadian Dividend (AGF) investment account mirrors the performance of the following underlying fund:1 AGF dividend Income Fund, MF Series.


The Fund’s objective is to provide investors with long-term capital appreciation along with the potential for monthly income, primarily through investing in high dividend yielding shares trading on Canadian stock exchanges. The Fund may also invest in money market instruments and fixed-income investments issued by Canadian corporations and governments.

When selecting companies to invest in, the Fund focuses on securities which offer an attractive current yield combined with the following characteristics: superior management, industry leadership, a high level of profitability relative to others in that industry, a sound financial position and strong earnings and dividend growth.

FUnd PERFoRMAnCE2



0.5 0.5 4.6 4.7 0.9 7.4 9.1

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

3.8 –4.6 14.0 25.1 –28.0 0.4 9.9

FUnd CoMPoSITIon

Top 10 holdings %

1. Royal Bank of Canada 4.42. Bank of Montreal 4.33. Rogers Communications Inc. 4.24. Magna International Inc. 4.05. CIBC 3.56. Suncor Energy Inc. 3.37. National Bank of Canada 3.28. Husky Energy Inc. 2.79. Shaw Communications Inc. 2.210. Manulife 2.2



Canadian dividend (AGF)As at August 31, 2013

Asset mix %

■ Canadian Equities 98.7■ Cash & Other 1.3


■ Financial Services 37.6■ Energy 26.8■ Consumer Discretionary 8.6■ Industrial 8.0 ■ Raw Materials 7.6■ Telecommunications 4.6 ■ Consumer Staples 3.4■■ Utilities 1.7■ Cash & Other 1.3 ■ Information Technology 0.4









Derek Young Geoff Stein



■■ Inception May 2005


■■ MER4 2.35%


Low Moderate High




Canadian dividend (Fidelity)As at August 31, 2013

The Canadian Dividend (Fidelity) investment account mirrors the performance of the following underlying fund:1 Fidelity dividend Fund, Series A.


This Fund aims to achieve high total investment return. It invests, either directly or through investing in securities of other funds, primarily in equity securities of companies that pay dividends or that are expected to pay dividends, income trusts, fixed-income securities, and other securities that are expected to distribute income.

The Fund invests mainly in equity securities of Canadian companies. When buying and selling equity securities, the Portfolio Manager examines each company’s potential for success in light of its current financial condition, its industry position and economic and market conditions. The Portfolio Manager focuses primarily on a company’s valuations when deciding whether or not to invest in the company. The Portfolio Manager invests in companies he believes are undervalued in the marketplace in relation to factors such as the company’s assets, sales, earnings, growth potential, or cash flow, or in relation to securities of other companies in the same industry. The Portfolio Manager considers factors like earnings estimates, ability to pay dividends, and quality of management.

FUnd PERFoRMAnCE2



0.5 2.2 8.6 7.4 5.4 — 7.7

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

6.4 1.9 11.6 32.3 –22.9 5.0 15.0


Top 10 holdings



3. TransCanada Corp.

4. Bank of Montreal

5. Manulife

6. Shoppers Drug Mart

7. CVS Caremark

8. Brookfield Asset Inc VTG CL A

9. Microsoft

10. Magna International



Asset mix %

■ Canadian Equities 54.0■ Foreign Equities 19.2■ Cash & Other 18.2■ Canadian Bonds 8.6


■ Financial Services 29.9■ Energy 10.6■ Consumer Staples 9.4■ Utilities 5.6■ Consumer Discretionary 4.9■ Raw Materials 3.8■ Telecommunications 3.8■ Industrial 2.8■ Health Care 1.9




Oscar Belaiche, HBA, FICB, CFA



■■ Inception July 2001


■■ MER4 2.17%


Low Moderate High




Canadian Equity Income (Dynamic)As at August 31, 2013

The Canadian Equity Income (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic Equity Income Fund, Series A.


The Dynamic Equity Income Fund seeks to achieve high income and long-term growth of capital by investing primarily in equity securities that pay a dividend or distribution.

The Funds invests primarily in a wide range of equity securities such as dividend or distribution paying equity securities and real estate investments trusts on a global basis, as well as in other types of equity and/or debt securities including limited partnerships, master limited partnerships and high yield, corporate, convertible and government bonds and money market instruments. The Fund generally follows an investment approach emphasizing a suitably diversified portfolio of different businesses that meet required objectives. Investments may be eliminated when original attributes, including valuation parameters, are no longer attractive, in the opinion of the portfolio advisor.

FUnd PERFoRMAnCE2



–1.9 –1.1 2.9 9.2 5.6 9.6 11.7

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

5.0 9.6 22.0 30.5 –24.6 7.4 0.4

FUnd CoMPoSITIon

Top 10 holdings

1. Vermilion Energy Inc.

2. Alaris Royalty Corp.


4. Comcast Corporation, Class “A”


6. Enbridge Inc.

7. Crescent Point Energy Corp.

8. Bank of Nova Scotia

9. LayondellBasell Industries NV, Class “A”

10. Calloway Real Estate Investment Trust



Asset mix %

■ Canadian Equities 46.1■ U.S. Equity 24.2■ Real Estate Investment Trusts 13.8■ Cash & Other 11.2■ Foreign Equities 3.1■ Private Equity – Real Estate 1.4■ Foreign Bonds 0.2


■ Financial Services 16.3■ Energy Infrastructure 16.0■ Real Estate 16.0■ Energy 13.3■ Utilities 5.5■ Industrial 5.3■ Consumer Discretionary 5.3■ Telecommunications 4.0■ Raw Materials 3.2■ Private Equity – Real Estate 1.4









Cecilia Mo, MBA

■■ Asset Category Canadian Focused Equity


■■ Inception July 1957


■■ MER4 2.39%


Low Moderate High




Canadian Equity (Dynamic)As at August 31, 2013

The Canadian Equity (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic value Fund of Canada, Series A.


The Dynamic Value Fund of Canada seeks to achieve long-term capital growth by investing primarily in equity securities of Canadian businesses. Investment analysis for this Fund follows a bottom-up approach, which emphasizes careful company-specific analysis. Using a value investment approach, this Fund invests in companies that represent good value based on current stock price relative to the company’s intrinsic value.

FUnd PERFoRMAnCE2



2.3 7.8 23.5 5.0 2.3 10.7 11.1

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

9.9 –22.2 14.7 43.0 –28.2 4.5 26.5

FUnd CoMPoSITIon

Top 10 holdings %

1. Mednax, Inc. 5.22. CGI Group Inc. 4.03. MacDonald, Dettwiler

and Associates Ltd. 3.44. Paramount Resources Ltd. 3.35. Baxter International Inc. 2.96. Hologic, Inc. 2.97. Bank of Nova Scotia 2.78. Rogers Communications Inc. 2.39. SPX Corporation 1.910. Manulife 1.8



Asset mix %

■ Canadian Equities 41.0■ U.S. Equity 39.4■ Cash & Other 15.8■ Foreign Equities 3.8


■ Health Care 21.7■ Industrial 12.5■ Energy 11.7■ Information Technology 11.5■ Financial Services 10.1■ Consumer Discretionary 7.0■ Raw Materials 4.2■ Telecommunications 3.4■ Consumer Staples 2.1


Canadian Equity (Fidelity)As at August 31, 2013








Andrew Marchese


■■ Management Style Growth



■■ MER4 2.51%


Low Moderate High




The Canadian Equity (Fidelity) investment account mirrors the performance of the following underlying fund:1 Fidelity Canadian disciplined Equity Fund, Series A.


This Fund aims to achieve long-term capital growth. It invests primarily in equity securities of Canadian companies.

The Fund aims to invest in the same sectors and in the same proportion as the S&P/TSX Capped Composite Index. Members of a team of analysts are assigned to each sector. The analysts choose investments for their sector based on a thorough review of each company’s management, financial conditions and potential for earnings growth over the long term.

FUnd PERFoRMAnCE2



1.3 2.4 12.1 4.2 0.5 7.5 9.8

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

5.1 –12.4 17.6 38.8 –35.8 12.9 15.2


Top 10 holdings



3. Potash Corp. of Saskatchewan

4. Canadian Natural Resources

5. Manulife

6. Enbridge

7. Cenovus Energy

8. National Bank of Canada

9. Valeant Pharmaceuticals

10. TransCanada Corp.



Asset mix %

■ Canadian Equities 88.5■ Foreign Equities 7.6■ Cash & Other 3.9


■ Financial Services 33.2■ Energy 23.0■ Raw Materials 13.0■ Industrial 6.9■ Consumer Discretionary 5.8■ Telecommunications 4.7■ Consumer Staples 3.2■ Health Care 3.0■ Utilities 1.6■ Information Technology 1.6


Small Capitalization Canadian Equity (Dynamic)As at August 31, 2013








Oscar Belaiche, HBA, FICB, CFA Jason Gibbs, BAcc, CA, CFA

■■ Asset Category Canadian Small/Mid Cap Equity




■■ MER4 2.75%


Low Moderate High




The Small Capitalization Canadian Equity (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic Small Business Fund, Series A.


Dynamic Small Business Fund seeks long-term capital appreciation through investment primarily in equity securities of relatively small Canadian businesses.

The Fund invests primarily in securities of publicly traded, small Canadian businesses, including dividend or distribution paying businesses, including investment trusts. The Fund generally follows an investment approach emphasizing a suitably diversified portfolio of different businesses that meet required objectives. Investments may be eliminated when original attributes, including valuation parameters, are no longer attractive, in the opinion of the Fund. The Fund primarily uses a bottom-up approach, seeking to identify equity securities issued by stable companies. The Fund evaluates the financial condition and management of each company, its industry and the overall economy.

FUnd PERFoRMAnCE2



–2.6 –1.4 0.7 7.3 9.8 14.1 8.0

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

5.4 1.5 27.3 38.8 –18.0 18.5 17.9

FUnd CoMPoSITIon

Top 10 holdings

1. Pizza Pizza Royalty Corp.

2. Alaris Royalty Corp.

3. Whitecap Resources Inc.

4. Bonterra Energy Corp.


6. LaSalle Hotel Properties

7. Guardian Capital Group Limited, Class “A”

8. Morneau Shepell Inc.

9. Innergex Renewable Energy Inc.

10. Starwood Property Trust, Inc.



Asset mix %

■ Canadian Equities 51.8■ Cash & Other 30.7■ Real Estate Investment Trusts 12.1■ U.S. Equity 3.4■ Private Equity – Real Estate 0.9■ Canadian Bonds 0.8■ Foreign Bonds 0.3


■ Financial Services 19.0■ Energy 11.7■ Industrial 8.2■ Real Estate 8.1■ Energy Infrastructure 6.4■ Consumer Discretionary 3.9■ Utilities 3.7■ Raw Materials 3.7■ Information Technology 1.4■ Consumer Staples 1.2


Low volatility Canadian Equity (TDAM)As at August 31, 2013

Returns for this account are based on the performance of the following underlying fund:1, 2 Td Emerald Low volatility Canadian Equity PFT.


The TD Emerald Low Volatility Canadian Equity PFT intends to achieve its objective by investing primarily in Canadian securities which are included in the S&P/TSX Index, subject to investment restrictions of the Fund. The Fund is broadly diversified and invests in a large number of securities but is not expected to include all securities in the S&P/TSX Index. The investment objective of the Fund is to provide a better risk adjusted total return than a capitalization weighted market index such as the S&P/TSX Composite Total Return Index, used to track the performance of Canadian equity securities over a full market cycle.

PERFoRMAnCE3



–1.9 –0.3 8.5 11.1 — — 13.4

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

9.3 12.4 17.2 — — — —

FUnd CoMPoSITIon

Top 10 holdings %

1. BCE Inc. 3.12. Intact Financial Corporation 3.13. Tim Hortons Inc. 3.14. TransCanada Corporation 3.05. Shaw Communications Inc.,

(Class “B”, NV) 3.06. Bell Aliant Inc. 3.07. Bank of Montreal 3.08. Fortis Inc. 3.0 9. Canadian National Railway Company 3.010. Thompson Reuters Corporation 2.9




2. The return credited is the return generated by the underlying fund less management fees.

3. – The returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by the Low Volatility Canadian Equity (TDAM) Investment Account if it had existed during the periods shown.





■■ Portfolio Manager Wilcox Chan, CFA







Low Moderate High




Asset mix %

■ Financial Services 24.9■ Consumer Discretionary 17.1■ Telecommunications 13.5■ Energy 12.9■■ Consumer Staples 12.7■ Utilities 10.8■ Industrial 4.2■ Raw Materials 1.9■■ Information Technology 1.6■ Cash & Other 0.2■ Health Care 0.1


Investment Accounts

U.S. and International Equity


1. “Standard & Poor’sTM”, “S&PTM”, “S&P 500TM” “Standard & Poor’s 500” and “500” are trademarks of Standard and Poor’s. These marks have been licensed for use by La Capitale Civil Service Insurer Inc. and its affiliates. These accounts are not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation, warranty, or condition regarding the advisability of investing in these investment accounts.

2. The return credited is the net total return generated by the index in Canadian dollars, including dividends net of withholding tax, less management fees.

3. – The returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by the American Equity Index Investment Account if it had existed during the periods shown.




ACCoUnT dETAILS

■■ Asset Category American Equity




Low Moderate High




Returns for this account are based on the S&P 5001, 2 American Index, which is the main benchmark for U.S. equity performance. It consists of 500 of the largest (in terms of market capitalization) and most liquid (as determined by trading volume) companies listed on U.S. stock exchanges.

PERFoRMAnCE3



2.1 10.4 23.7 15.1 4.5 1.7

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

10.6 2.1 6.4 4.7 –23.2 –12.7 12.6

CoMPoSITIon oF S&P 500

Top 10 holdings %

1. Apple Inc. 3.22. Exxon Mobil Corp. 2.73. Microsoft Corp. 1.74. Johnson & Johnson 1.75. General Electric Co. 1.76. Chevron Corp. 1.67. Google Inc., Class “A” 1.68. Procter & Gamble Company 1.59. Berkshire Hathaway B 1.410. Wells Fargo & Company 1.4


The Top 10 holdings represent 18.3% of the S&P 500.

American Equity IndexAs at August 31, 2013

Sector allocation %

■ Information Technology 18.1■ Financial Services 16.4■ Health Care 12.9■ Consumer Discretionary 12.3■ Energy 10.6■ Industrial 10.3■ Consumer Staples 10.2■ Raw Materials 3.4■ Utilities 3.2■ Telecommunications 2.5


1. The investment account referred to is not sponsored, endorsed, sold or promoted by MSCITM, and MSCITM bears no liability with respect to the account or any index on which the investment account is based. The investment certificate contains a more detailed description of the limited relationship MSCITM has with La Capitale Civil Service Insurer Inc., its affiliates and this account.

2. The return credited is the net total return generated by the index in Canadian dollars, including dividends net of withholding tax, less management fees.

3. – The returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by the International Equity Index Investment Account if it had existed during the periods shown.




ACCoUnT dETAILS

■■ Asset Category International Equity




Low Moderate High




Returns for this account are based on the MSCI EAFE 1, 2 International Index, which is the main benchmark for international equity performance. It consists of MSCI indexes from 22 countries representing developed markets outside North America, such as Europe, Australasia and the Far East.

PERFoRMAnCE3



1.7 5.2 24.0 6.4 –0.8 2.3

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

12.1 –12.0 –0.2 9.4 –30.8 –7.9 23.0

CoMPoSITIon oF MSCI EAFE

Top 10 holdings %

1. Nestle SA 1.82. HSBC Holdings PLC 1.63. Roche Holding AG 1.54. Novartis AG 1.45. Toyota Motor Corp 1.46. Vodafone Group PLC 1.37. BP PLC 1.18. GlaxoSmithKline PLC 1.19. Royal Dutch Shell PLC, Class “A” 1.010. TOTAL SA 1.0


The Top 10 holdings represent 13.3% of the MSCI EAFE.

International Equity IndexAs at August 31, 2013

Sector allocation %

■ Financial Services 24.9■ Industrial 12.8■ Consumer Discretionary 11.7■ Consumer Staples 11.4■ Health Care 10.2■ Raw Materials 8.2■ Energy 7.1■ Telecommunications 5.3■ Information Technology 4.3■ Utilities 3.7

Geographic Mix %

1. United Kingdom 22.0 2. Japan 21.53. France 9.74. Switzerland 9.15. Germany 8.76. Australia 8.07. Sweden 3.28. Hong Kong 3.09. Spain 3.010. Netherlands 2.811. Italy 2.112. Singapore 1.613. Denmark 1.214. Belgium 1.215. Norway 0.816. Finland 0.817. Israel 0.518. Ireland 0.319. Austria 0.320. Portugal 0.221. New Zealand 0.122. Greece 0.0









David L. Fingold, B.Sc. Management

■■ Asset Category American Equity


■■ Inception August 1979


■■ MER4 2.45%


Low Moderate High




The American Equity (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic American value Fund, Series A.


The Dynamic American Value Fund seeks to achieve long-term capital growth by investing primarily in equity securities of United States-based businesses. To achieve its mandate, the Fund will invest primarily in United States-based companies. From time to time, and to a lesser extent, this Fund may also invest in companies in other countries in the Americas. Investment analysis for this Fund follows a bottom-up approach, which emphasizes careful company-specific analysis. Using a value investment approach, this Fund invests in companies that represent good value based on current stock price relative to the company’s intrinsic value.

FUnd PERFoRMAnCE2



–0.8 4.2 10.2 7.6 3.2 5.5 9.4

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

3.1 –3.4 10.1 16.7 –24.7 5.1 16.3

FUnd CoMPoSITIon

Top 10 holdings %

1. Thermo Fisher Scientific Inc. 4.52. Cosco Wholesale Corp. 4.23. Honeywell International Inc. 4.24. Apple Inc. 4.15. Hershey Company 4.16. Berkshire Hathaway Inc. 4.07. Johnson & Johnson 3.98. Noble Energy, Inc. 3.59. Sirius XM Radio Inc. 3.410. MasterCard Inc. 3.4



American Equity (Dynamic)As at August 31, 2013

Asset mix %

■ U.S. Equity 95.4■ Cash & Other 4.6


■ Information Technology 20.0■ Financial Services 19.2■ Consumer Discretionary 16.0■ Industrial 14.9■ Health Care 10.5■ Consumer Staples 8.3■ Energy 3.5■ Raw Materials 3.0









Chuk Wong, BAA, M.Sc., CGA, CFA

■■ Asset Category Global Equity




■■ MER4 2.46%


Low Moderate High




The Global Equity (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic Global value Fund, Series A.


The Dynamic Global Value Fund seeks to provide long-term capital growth through investment in a broadly diversified portfolio consisting primarily of equity securities of businesses based outside of Canada. The Fund invests in a broadly diversified portfolio consisting primarily of equity securities of businesses situated outside of Canada. Based on the Fund’s view of the global capital markets, it may invest from time to time in a limited number of countries and areas of the world. Investment analysis for this Fund follows a bottom-up approach, which emphasizes careful company-specific analysis. Using a value investment approach, this Fund invests in companies that represent good value based on current stock price relative to the company’s intrinsic value.

FUnd PERFoRMAnCE2



–2.8 2.2 25.9 3.1 2.1 5.4 5.9

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

21.1 –23.3 10.3 47.3 –43.8 0.9 22.8

FUnd CoMPoSITIon

Top 10 holdings %

1. Nu Skin Enterprises, Inc. 3.72. BorgWarner Inc. 3.23. Lloyds Banking Group PLC 3.24. Signet Jewelers Limited 3.15. BNP Paribas 2.66. Berkeley Group Holdings PLC 2.57. Bank of America Corporation 2.58. Towers Watson & Co. 2.49. H2O Retailing Corporation 2.310. Mattel, Inc. 2.3



Global Equity (Dynamic)As at August 31, 2013

Asset mix %

■ Foreign Equities 68.4■ U.S. Equity 24.0■ Cash & Other 4.0■ Canadian Equities 2.0■ Mutual Funds – Foreign Equity 1.6


■ Consumer Discretionary 30.4■ Financial Services 28.2■ Industrial 17.5■ Information Technology 7.4■ Consumer Staples 5.3■ Raw Materials 2.7 ■ Health Care 2.0■ Telecommunications 0.9









David L. Fingold, B.Sc. Management





■■ MER4 2.76%


Low Moderate High




The Global Equity – Discovery (Dynamic) investment account mirrors the performance of the following underlying fund:1 dynamic Global discovery Fund, Series A.


Dynamic Global Discovery Fund seeks to provide long-term capital growth through investment in a broadly diversified portfolio consisting primarily of equity securities of businesses based outside of Canada.

The Fund may invest the majority of its assets in equity securities of small capitalization companies. The Fund may invest in all types of securities. However, it will invest primarily in equity securities, including common shares and preferred shares and, to a lesser extent, in other kinds of securities, including: convertible bonds, payment-in-kind bonds, warrants, discounted debt instruments, restructured debt securities, loan assignments, loan participations and high yield, lower rated debt securities, as well as the securities of companies in reorganization and government securities of emerging market countries or other countries. Investment analysis for this Fund follows a bottom-up approach, which emphasizes careful company-specific analysis. Using a value investment approach, this Fund invests in companies that represent good value based on current stock price relative to the company’s intrinsic value.

FUnd PERFoRMAnCE2



1.7 3.5 16.8 4.9 2.0 6.5 5.0

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

6.7 –15.3 16.4 23.7 –30.4 7.1 26.2

FUnd CoMPoSITIon

Top 10 holdings %

1. Schweiter Technologies AG 7,22. Frutarom Industries Ltd. 6,33. Strauss Group Ltd. 4,84. Tamedia AG 4,65. Berkshire Hathaway Inc. 4,1 6. Spirax-Sarco Engineering PLC 4,17. TOD’S SPA 3,88. Sirius XM Radio Inc. 3,8 9. Legrand SA 3,410. Noble Energy, Inc. 3,4



Global Equity – discovery (Dynamic)As at August 31, 2013

Asset mix %

■ Foreign Equities 60.3■ U.S. Equity 33.2■ Cash & Other 6.4■ Canadian Equities 0.1


■ Financial Services 23.8■ Industrial 21.1■ Consumer Discretionary 19.5■ Information Technology 12.5■ Consumer Staples 6.8■ Raw Materials 6.4■ Energy 3.4


Low volatility Global Equity (TDAM)As at August 31, 2013



Wilcox Chan, CFA



■■ Inception May 2011




Low Moderate High





2. The return credited is the return generated by the underlying fund less management fees.

3. – The returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by the Low Volatility Global Equity (TDAM) Investment Account if it had existed during the periods shown.




Returns for this account are based on the performance of the following underlying fund:1, 2 Td Emerald Low volatility All world Equity PFT.


The TD Emerald Low Volatility All World Equity Pooled Fund Trust intends to achieve its objective by investing primarily in common shares of corporations which are included in the MSCI All Country World Index. The portfolio of the Fund is broadly diversified in a large number of securities but is not expected to include all securities in the index. In order to potentially deliver significantly less volatile returns than the MSCI All Country World Index, the Fund builds a portfolio with significantly different characteristics. As a result, the tracking error relative to the index is expected to be relatively high even though the standard deviation of return is expected to be materially less than that of the index. The investment objective of the Fund is to provide a rate of return generally similar to the MSCI All Country World Index, used to track the performance of developed and emerging market equity securities, over a full market cycle but with less volatility than the index.

PERFoRMAnCE3



1.1 4.7 18.3 — — — 10.5

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

7.5 — — — — — —

FUnd CoMPoSITIon

Top 10 holdings %

1. Lockheed Martin Corporation 0.82. Shire PLC 0.83. Canadian Imperial Bank of Commerce 0.84. Bank of Montreal 0.85. Pearson PLC 0.86. TJX Company Inc. (The) 0.87. Praxair Inc. 0.88. Intact Financial Corporation 0.89. China Mobile Limited 0.810. SSE PLC 0.8



Asset mix %■ Financial Services 17.2■ Consumer Discretionary 16.7■ Consumer Staples 13.6■ Utilities 12.8■ Industrial 11.5■ Telecommunications 10.1■ Health Care 6.2■ Energy 4.4■ Raw Materials 3.7■ Information Technology 3.2■ Cash & Other 0.5■ Index Equivalents 0.2

Geographic Mix %

1. United States 40.02. Japan 10.63. Canada 10.04. United Kingdom 9.25. Malaysia 5.06. Hong Kong 4.47. Singapore 3.28. Bermudes 1.89. Switzerland 1.610. Taiwan 1.411. Republic of Korea 1.412. South Africa 1.313. Australia 1.214. Ireland 1.215. Other 7.3


Emerging Markets (AGF)As at August 31, 2013







■■ Portfolio Manager Stephen Way, CFA Alpha Ba, MSc, CFA

■■ Asset Category Emerging Markets Equity


■■ Inception March 1994


■■ MER4 3.11%


Low Moderate High




The Emerging Markets (AGF) investment account mirrors the performance of the following underlying fund:1 AGF Emerging Markets Fund, MF Series.


The Fund’s objective is to provide superior capital growth. It invests primarily in shares of companies that are located or active mainly in emerging market countries.

The Fund intends to invest primarily in issuers located in emerging markets, as defined by the Morgan Stanley Capital International Emerging Markets Total Return Index, as well as issuers located in Hong Kong and Singapore.

The Fund uses a bottom-up stock selection process favouring companies that are trading at a significant discount to what it believes is their underlying earnings potential. These companies should have the ability to generate above-average growth in sales, earnings and cash flow.

FUnd PERFoRMAnCE2



–10.4 –13.6 –1.4 –1.9 3.0 11.4 12.6

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

14.7 –14.6 15.3 60.3 –35.2 12.4 40.4

FUnd CoMPoSITIon

Top 10 holdings %

1. Samsung Electronics Co. Ltd 3.22. Taiwan Semiconductor

Manufacturing Co. Ltd 2.73. SABMiller PLC 2.64. Hankook Tire Co. Ltd. 2.65. VTech Holdings Ltd. 2.56. The Wharf Holdings Ltd. 2.57. China Overseas Land and

Investment Ltd. 2.38. CNOOC Ltd. 2.39. Tenaris SA 2.210. First Pacific Co. Ltd 2,2




■ Financial Services 24.8■ Consumer Discretionary 15.1■ Energy 12.2■ Consumer Staples 11.9■ Information Technology 10.7■ Raw Materials 8.6■ Telecommunications 7.2■ Industrial 4.8■ Health Care 2.5■ Utilities 1.2■ Cash & Other 0.9

Geographic Mix %

■ China 13.0■ Brazil 10.6■ South Korea 10.3■ Hong Kong 9.0■ India 7.8■ Mexico 7.4■ South Africa 6.8■ Thailand 5.7■ Taiwan 5.3■ Other 24.2


Investment Accounts

PortfolioLa Capitale is pleased to present its Portfolio investment accounts.

These accounts aim to mirror the performance of a portfolio of mutual investment funds, the composition of which is designed to match various investor profiles. Portfolios are constructed with a range of funds, enabling a broad diversification of asset class, region and management style.

The funds in each portfolio have been selected to maximize returns on the basis of a given level of risk. Each portfolio is rebalanced periodically by the portfolio manager to ensure the asset allocation consistently matches its target allocation.


1. Investing in this account is not the same as purchasing units of this portfolio and does not confer any rights in the portfolio.


3. Simple return for period of less than one year.4. Actual percentages may vary.5. Represents management expense ratio of underlying

portfolio. Management fees may also be charged to the account by the insurer. These fees are not guaranteed.


UndERLyInG PoRTFoLIo dETAILS

■■ Investment Fund Manager

for

■■ Type of Portfolio Strategic Asset Allocation



■■ MER5 2.10%


Low Moderate High




The Conservative Profile (NBSI) investment account mirrors the performance of the following underlying portfolio:1 Meritage Conservative Income Portfolio, Advisor Series.


The Meritage Conservative Income Portfolio aims to achieve a current income and some capital appreciation over the medium-term by investing primarily in a diverse mix of fixed-income and equity mutual funds.

The target asset mix is 20 % equities and 80 % fixed income. The Portfolio manager may, at its sole discretion, review and adjust the target weighting of each asset class depending on economic and market conditions. The Portfolio manager typically will keep the weighting for each asset class within 10% above or below the amounts set out above.

The Portfolio manager may, at its sole discretion, select the underlying funds, allocate assets to the underlying funds, change the percentage holding of any underlying fund, remove any underlying fund or add other underlying funds.

PoRTFoLIo PERFoRMAnCE2



–2.3 –2.4 –0.4 3.2 3.9 — 3.6

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

3.9 5.4 7.2 13.6 –4.9 1.4 —

TARGET ASSET MIX4 oF ThE PoRTFoLIo

■ Fixed Income 80%■ Equities 20%

Conservative Profile (NBSI)As at August 31, 2013

Asset mix %

■ Fixed Income 78TD Canadian Bond Fund 21.9Beutel Goodman Income Fund 21.6TD Short Term Bond Fund 19.6RBC Global High Yield Bond Fund 10.5TD Real Return Bond Fund 4.5

Asset mix %

■ Canadian Equity 22Dynamic Equity Income Fund 10.8CI Signature Dividend Fund 5.7RBC Canadian Dividend Fund 5.7

FUnd PoRTFoLIo


1. Investing in this account is not the same as purchasing units of this portfoliod does not confer any rights in the portfolio.







for




■■ MER5 2.19%


Low Moderate High




The Moderate Profile (NBSI) investment account mirrors the performance of the following underlying portfolio:1 Meritage Moderate Income Portfolio, Advisor Series.


The Meritage Moderate Income Portfolio aims to achieve a current income and long-term capital appreciation by investing primarily in a diverse mix of fixed-income and equity mutual funds.






–2.1 –1.5 2.1 4.5 4.2 — 3.7

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

5.5 4.3 8.2 16.5 –9.4 0.8 —


■ Fixed Income 65%■ Equities 35%

Moderate Profile (NBSI)As at August 31, 2013

Asset mix %

■ Fixed Income 62TD Canadian Bond Fund 19.0Beutel Goodman Income Fund 18.8RBC Global High Yield Bond Fund 10.1TD Short Term Bond Fund 9.6TD Real Return Bond Fund 4.4

Asset mix %

■ Canadian Equity 32CI Signature Dividend Fund 10.9RBC Canadian Dividend Fund 10.9Dynamic Equity Income Fund 10.4

■ Actions mondiales 6Capital International – Global Equity Fund 6.0

FUnd PoRTFoLIo









for




■■ MER5 2.38%


Low Moderate High




The Balanced Profile (NBSI) investment account mirrors the performance of the following underlying portfolio:1 Meritage Balanced Income Portfolio, Advisor Series.


The Meritage Balanced Income Portfolio aims to achieve a high current income by investing primarily in a diverse mix of fixed-income and equity mutual funds.






–1.6 –0.5 4.4 5.6 4.4 — 3.9

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

6.3 3.5 9.4 18.7 –13.1 1.1 —


■ Equities 50%■ Fixed Income 50%

Balanced Profile (NBSI)As at August 31, 2013

Asset mix %

■ Fixed Income 46TD Canadian Bond Fund 16.2Beutel Goodman Income Fund 16.0RBC Global High Yield Bond Fund 9.9TD Real Return Bond Fund 4.3

Asset mix %

■ Canadian Equity 42CI Signature Dividend Fund 16.0Dynamic Equity Income Fund 15.2RBC Canadian Dividend Fund 10.6

■ Global Equity 12Mackenzie Cundill Value Fund 6.0Mackenzie Ivy Foreign Equity Fund 5.9

FUnd PoRTFoLIo









for




■■ MER5 2.47%


Low Moderate High




The Growth Profile (NBSI) investment account mirrors the performance of the following underlying portfolio:1 Meritage Growth Income Portfolio, Advisor Series.


The Meritage Growth Income Portfolio aims to achieve a high current income and long-term capital appreciation by investing primarily in a diverse mix of fixed-income and equity mutual funds.






–1.2 0.5 7.0 6.7 4.7 — 4.0

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

7.6 2.1 10.6 21.4 –16.9 0.5 —



Growth Profile (NBSI) As at August 31, 2013

Asset mix %

■ Fixed Income 32TD Canadian Bond Fund 11.3Beutel Goodman Income Fund 11.2RBC Global High Yield Bond Fund 9.6

Asset mix %

■ Canadian Equity 51Dynamic Equity Income Fund 19.7 CI Signature Dividend Fund 15.5RBC Canadian Dividend Fund 15.5

■ Global Equity 17Mackenzie Cundill Value Fund 5.8Capital International – Global Equity Fund 5.8Mackenzie Ivy Foreign Equity Fund 5.8

FUnd PoRTFoLIo


1. Investing in this account is not the same as purchasing units of this portfolio and does not confer any rights in the portfolio.




6. Certain conditions apply.* Fund name changed from AGF Canadian

Conservative Inflation Managed Income Fund, May 2010.



for




■■ MER5 2.73%


Low Moderate High




The Aggressive Profile (NBSI) investment account mirrors the performance of the following underlying portfolio:1 Meritage Equity Income Portfolio, Advisor Series.


The Meritage Equity Income Portfolio aims to achieve a high current income and long-term capital appreciation by investing primarily in a diverse mix of fixed-income and equity mutual funds.






–1.3 0.4 8.6 7.0 4.4 — 3.4

Annual returns (%)

2012 2011 2010 2009 2008 2007 2006

8.8 0.0 12.0 25.2 –21.8 –1.4 —



Aggressive Profile (NBSI)As at August 31, 2013

Asset mix %

■ Fixed Income 18RBC Global High Yield Bond Fund 9.2TD Canadian Bond Fund 4.5Beutel Goodman Income Fund 4.4

Asset mix %

■ Canadian Equity 60RBC Canadian Dividend Fund 20.7CI Signature Dividend Fund 20.5Dynamic Equity Income Fund 19.2

■ Global Equity 22Mackenzie Cundill Value Fund 6.1Capital International – Global Equity Fund 5.6Fonds d’actions étrangères Mackenzie Ivy 5.6Mackenzie Universal Emerging Markets Class 4.6

FUnd PoRTFoLIo


Suggested Asset Allocations based on Investor Profile As at August 31, 2013

Conservative ProfileAsset category %

■ Fixed Income 75■ Canadian Equity 20■ U.S. and International Equity 5

Annualized returns (%)

1 year 3 years 5 years 10 years

0.9 3.1 3.3 4.6



3.0 3.7 3.2 4.7



4.8 4.4 3.9 6.5



4.6 4.6 4.7 7.0



4.9 4.6 5.0 7.5

The returns shown are net of management fees.The suggested allocations are for information purposes only. Only Profile Investment Accounts are subject to periodic rebalancing.

Moderate ProfileAsset category %


Balanced ProfileAsset category %


Growth ProfileAsset category %


Aggressive ProfileAsset category %


La Capitale Investment Accounts %

Canadian Bond Index 30Canadian Fixed Income (AGF) 45Canadian Dividend (Fidelity) 10Low Volatility Canadian Equity (TDAM) 10Global Equity – Discovery (Dynamic) 5ORConservative Profile (NBSI) 100


Canadian Bond Index 30Canadian Fixed Income (AGF) 30Canadian Dividend (Fidelity) 20Low Volatility Canadian Equity (TDAM) 10Global Equity – Discovery (Dynamic) 5Low Volatility Global Equity (TDAM) 5ORModerate Profile (NBSI) 100


Canadian Bond Index 20Canadian Fixed Income (AGF) 20Canadian Dividend (Fidelity) 20Low Volatility Canadian Equity (TDAM) 10Small Capitalization Canadian Equity (Dynamic) 10Global Equity – Discovery (Dynamic) 20ORBalanced Profile (NBSI) 100


Canadian Bond Index 25Canadian Dividend (Fidelity) 30Small Capitalization Canadian Equity (Dynamic) 15Global Equity – Discovery (Dynamic) 20Emerging Markets (AGF) 10ORGrowth Profile (NBSI) 100


Canadian Bond Index 10Canadian Dividend (Fidelity) 30Small Capitalization Canadian Equity (Dynamic) 20Global Equity – Discovery (Dynamic) 20Emerging Markets (AGF) 20ORAggressive Profile (NBSI) 100

NotesThe returns shown in this table are provided for information purposes only and illustrate the approximate returns that would have been generated by La Capitale Investment Accounts if these accounts had existed during the periods shown.Past performance does not guarantee future results.


In Brief

Fixed Income Asset categoryManagement

Style Market Index or Underlying FundManagement

Fees1

MER of Underlying

Fund2Investment Objectives in Brief

Canadian Bond Index Canadian Fixed Income Index DEX Universe Bond Index3 1.75% 0% Interest income

Canadian Fixed Income (AGF)

Canadian Fixed Income Interest Rate Anticipation

AGF Fixed Income Plus Fund, MF Series 0% 1.95% Interest income

Balanced Asset categoryManagement

Style Underlying FundManagement

Fees1

MER of Underlying


Canadian Balanced (Dynamic)

Global Neutral Balanced

Value Dynamic Value Balanced Fund, Series A 0% 2.41% Long-term capital growthDividend and interest income

Canadian Balanced (Fidelity)

Canadian Neutral Balanced

Growth Fidelity Canadian Balanced Fund, Series A

0% 2.31% High total investment return

Global Balanced (AGF) Global Balanced Value AGF World Balanced Fund, MF Series 0% 2.61% Long-term capital growthInterest income

Diversified Income (Fidelity)

Canadian Neutral Balanced

Value Fidelity Monthly Income Fund, Series A 0% 2.32% Steady flow of incomeModest capital appréciation

Diversified Income (Dynamic)

Canadian Equity Balanced

Blend Dynamic Strategic Yield Fund, Series A 0% 2.28% Long-term capital growth High income

Canadian Equity Asset categoryManagement

Style Market Index or Underlying FundManagement

Fees1

MER of Underlying


Canadian Equity Index Canadian Equity Index S&P/TSX 60,4 Canadian Index 1.85% 0% Long-term capital growth

Canadian Dividend (AGF) Canadian Dividend and Income Equity

Blend AGF Dividend Income Fund, MF Series 0% 2.20% Long-term capital growthDividend income

Canadian Dividend (Fidelity)

Canadian Dividend and Income Equity

Blend Fidelity Dividend Fund, Series A 0% 2.35% High total investment return

Canadian Equity Income (Dynamic)

Canadian Dividend and Income Equity

Blend Dynamic Equity Income Fund, Series A 0% 2.17% Long-term capital growthHigh income

Canadian Equity (Dynamic)

Canadian Focused Equity

Value Dynamic Value Fund of Canada, Series A 0% 2.39% Long-term capital growth

Canadian Equity (Fidelity)

Canadian Equity Growth Fidelity Canadian Disciplined Equity Fund, Series A

0% 2.51% Long-term capital growth

Small Capitalization Canadian Equity (Dynamic)

Canadian Small/ Mid Cap Equity

Blend Dynamic Small Business Fund, Series A 0% 2.75% Long-term capital growth

Low Volatility Canadian Equity (TDAM)

Canadian Equity Blend TD Emerald Low Volatility Canadian Equity PFT5

2.40% 0% Better risk ajusted total return than the Index


U.S. and International Equity Asset category

Management Style Market Index or Underlying Fund

Management Fees1

MER of Underlying


American Equity Index American Equity Index S&P 500,4 American Index 1.85% 0% Long-term capital growth

International Equity Index International Equity Index MSCI EAFE,6 International Index 2.30% 0% Long-term capital growth

American Equity (Dynamic)

American Equity Value Dynamic American Value Fund, Series A 0% 2.45% Long-term capital growth

Global Equity (Dynamic) Global Equity Value Dynamic Global Value Fund, Series A 0% 2.46% Long-term capital growth

Global Equity – Discovery (Dynamic)

Global Equity Value Dynamic Global Discovery Fund, Series A

0% 2.76% Long-term capital growth

Low Volatility Global Equity (TDAM)

Global Equity Blend TD Emerald Low Volatility All World Equity PFT5

2.50% 0% Better risk ajusted total return than the Index

Emerging Markets (AGF) Emerging Markets Equity

Blend AGF Emerging Markets Fund, MF Series 0% 3.11% Long-term capital growth

Portfolio Type of Portfolio Underlying PortfolioManagement

Fees1

MER of Underlying


Conservative Profile (NBSI) Strategic Asset Allocation

Meritage Conservative Income Portfolio, Advisor Series 0% 2.10% Some capital appreciationDividend and interest income

Moderate Profile (NBSI) Strategic Asset Allocation

Meritage Moderate Income Portfolio, Advisor Series 0% 2.19% Long-term capital growthDividend and interest income

Balanced Profile (NBSI) Strategic Asset Allocation

Meritage Balanced Income Portfolio, Advisor Series 0% 2.38% High current income

Growth Profile (NBSI) Strategic Asset Allocation

Meritage Growth Income Portfolio, Advisor Series 0% 2.47% Long-term capital growthHigh current income

Aggressive Profile (NBSI) Strategic Asset Allocation

Meritage Equity Income Portfolio, Advisor Series 0% 2.73% Long-term capital growthHigh current income

1. Management fees charged by the insurer are not guaranteed. 2. Represents management expense ratio of underlying fund. 3. This index was formerly named the Scotia Capital Universe Bond Index, a trademark of the Bank of Nova Scotia.4. “Standard & Poor’sTM”, “S&PTM”, “S&P 500TM” “Standard & Poor’s 500” and “500” are trademarks of Standard and Poor’s. “TSX” is a trademark of The Toronto Stock Exchange. These marks have been licensed for use by

La Capitale Civil Service Insurer Inc. and its affiliates. These investment accounts are not sponsored, endorsed, sold or promoted by Standard & Poor’s or The Toronto Stock Exchange and neither party makes any representation, warranty, or condition regarding the advisability of investing in these investment accounts.

5. Pooled fund trust 6. The investment account referred to herein is not sponsored, endorsed, sold or promoted by MSCITM, and MSCIMC bears no liability with respect to the account or any index on which the investment account is based.

The investment certificate contains a more detailed description of the limited relationship MSCITM has with La Capitale Civil Service Insurer Inc., its affiliates and this account.

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This document provides a brief overview of the savings products available. The certificate you receive when you invest in one of these products governs the specific provisions of your investment. Contracts are issued by La Capitale Insurance and Financial Services Inc. or by La Capitale Civil Service Insurer Inc. Only the contract and investment certificate may be used to settle any legal issues.

Guided by the values of mutualism on which it was founded, La Capitale works with people to build, protect and value what they feel counts for their financial security.

To find out more about the numerous benefits associated with La Capitale’s products, contact us or visit our website.

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