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355 King St. West, 5th Floor, Toronto, ON M5V 1J6 P: 416-341-0114 F: 416-341-0115 E: [email protected]
INSURANCEADVISORY
SERVICE
May 2013
Insurance Advisory ServiceMay 2013 edition is published by Investor Economics.355 King St. West, 5th Floor, Toronto, Ontario, Canada M5V 1J6 Tel: (416) 341-0114 •Fax: (416) 341-0115 •E-mail: [email protected]
Website: www.InvestorEconomics.com
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Research & Editorial—Goshka Folda, Guy Armstrong, Maria Cadena, Daniel Bederman
Design and production: Marc Dacey/Dark Star Media
Disclaimer: This publication is intended only to convey information. The publisher and its data providers have taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable, and that the procedures used to summarize and analyze such information are based on approved practices and principles in the financial services industry. However, the market forces applicable to the subject matter of this report are subject to sudden and dramatic changes and data availability and reliability varies from one moment to the next. Consequently, neither the publisher nor its data providers makes any warranty as to the accuracy, com-pleteness or timeliness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. The publisher and its data providers disclaim all liability of whatsoever kind for any damages or losses incurred as a result of reliance upon or use of this publication. Past performance is no guarantee of future results.
Copyright: © Investor Economics 2013. All rights reserved. The publisher hereby asserts its moral rights to the integrity of the work and to be associated with the work as its author by name.
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Insurance Advisory Service | May 2013
Segregated FundsMonthly UpdateUpdate
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Exhibits in this section:
1 Segregated Fund Assets 2 Segregated Fund Net Flows 3 Segregated Funds: Assets and Net Flows by Asset Class 4 Segregated Funds: Assets and Gross Sales by Asset Class 5 Segregated Funds: Assets and Redemptions by Asset Class 6 Stand-alone Funds versus Segregated Funds of Funds (SFoFs)—Assets and Net Flows 7 Segregated Funds: Asset Growth by Asset Class 8 Segregated Funds: Flow Activity by Asset Class 9 Segregated Funds: Redemption Trends 10 Best-selling Segregated Funds: Major Asset Classes 11 Largest Segregated Fund Complexes and Funds 12 Best-selling Segregated Fund Complexes and Funds 13 Segregated Fund Gross Sales—All Funds 14 Segregated Fund Redemptions—All Funds 15 Largest Segregated Fund Insuring Complexes 16 Largest Segregated Fund Complexes and Funds Wrapping Mutual Funds 17 Largest Mutual Fund Complexes Wrapped into Segregated Funds 18 Best-selling Mutual Fund Complexes Wrapped into Segregated Funds 19 Largest Segregated Fund Complexes Wrapping Mutual Funds—Third Party Rank Share 20 Segregated Funds Wrapping Mutual Funds—Cross-tab Between Largest Segregated Fund Sponsors and Mutual Fund Providers 21 Segregated Funds Wrapping Mutual Funds—Cross-tab Between Best-selling Segregated Fund Sponsors and Mutual Fund Providers
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Segregated Funds Monthly Update
Markets and sales momentum both chipped away at segregated funds in April as assets dropped $200 million to end the month at $94.6 billion. Of the drop, $154.8 million was through net outflows; slipping domestic equity markets accounted for the remaining $45.2 million. Until April, positive markets, positive net flows or a combination of both had kept assets growing in each of the previous ten months. In April however, the biggest market decline occurred in Canadian equities, which, in making up 13% of all assets, was sufficient to more than offset the small market gains that occurred in most of the other categories.
A $255 million drop in gross sales in April ended two successive months of positive net flows. The drop in gross sales offset the improving redemption picture ending the month at $154.8 million in net outflows. In April month-over-month declines in gross sales were similar to that of guaranteed withdrawal benefit (GWB) contracts and traditional segre-gated funds, which were down 27% and 25%, respectively. Interestingly, the $109 million decline in redemptions witnessed in April came largely through traditional segregated funds, as GWB redemptions remained relatively constant with net flows of $17.2 million.
Net outflows in that month concealed some key differences within the major asset classes. Although broad categories of fixed income, balanced and equity funds all expe-rienced net outflows, certain sub-categories including foreign bond, income balanced, international balanced, international equity and U.S. equity saw net inflows. Additionally, the latter three categories saw higher net inflows in April than in March. The most notable net outflow for a sub-category in April was seen in Canadian equity. As equity’s largest sub-category, its net outflows of $141.8 million pushed the overall net flow performance of equity funds and its overall $89 million net outflow.
Net outflows from the more conservative fixed income and balanced categories were an even bigger surprise. Similar to equity funds, both fixed income and balanced categories suffered at the hands of their respective domestic sub-categories. Canadian bond funds and Canadian balanced funds experienced net outflows of $28.9 million and $87.7 million, respectively. It may well be that investors and their advisors are beginning to take notice of lagging domestic markets, particularly in traditional segregated fund contracts. How-ever, despite April’s outflows, balanced funds remained the most saleable asset category with year-to-date net inflows of $340.4 million.
GWB assets continued to grow, but net inflows continued to slip lower, reaching just over $17 million in April. In the absence of anticipated changes to existing features of GWBs, gross sales dropped and redemptions were relatively static. The $50 million drop in GWB gross sales seen in March almost exactly reflected the drop in net flows.
We anticipate a period of reduced interest in the level and cost of these types of income guarantees. This trend will continue until expectations on income guarantees fall into line with the rate environment as manufacturers seek to expand their payout product shelf.
While traditional segregated funds continued to post net outflows in April, they were responsible for two-thirds of the net inflows in international and U.S. equities and over 90% of the categories’ gross sales in April. This may indicate a growing receptivity for the traditional product, especially on the investment/accumulation side of the business. Redemptions in these sub-categories also remained relatively unchanged from March.
Assets and flows
Asset class trends
Product structures
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In April, only five life insurers posted net inflows compared to 10 in March. Of these, only two were over $10 million, indicating that the slowdown in sales is fairly broad. The one exception was Standard Life, which remained at the top of the ranking at $44.9 million; SSQ was a distant second at $11 million and RBC Insurance third at $9 million.
In terms of gross sales, Great-West Life, Manulife and Standard Life were in the top three rankings, with Standard Life surpassing Industrial Alliance. In terms of gross sales as a percentage of assets, RBC Insurance led the way with 3.4% in April followed by Standard Life at 2.3%.
Mutual funds wrapped by segregated funds shrank 0.1%, ending April at $54.8 billion. In spite of the decline, wrapped mutual funds performed better than the business as a whole. April ended with $129.6 million in outflows, which represented 0.2% of beginning assets; however, positive market effect compensated for this loss.
Manulife was the best-selling mutual fund company with $41.5 million in net inflows, followed by IA Clarington ($21.7) and Franklin Templeton ($17.9). Although all of the top 10 companies posted positive net flows, the remaining 15 all posted net outflows; as a result, April ended in the red. In April, Empire Life introduced a permanent life insurance product that combines guar-anteed and adjustable features. The permanent insurance product, Hybrid Solution 100, provides guaranteed coverage amounts, allowing policyholders to benefit from lower premiums should long-term interest rates rise. Premiums can shift up or down within a specified range. The range is determined annually using a Government of Canada long-term bond yield benchmark.
Manulife Financial reported a 56% drop in first-quarter earnings, citing weaker sales of its life insurance and less favourable market conditions. Sun Life Financial reported a decline in first-quarter profit of 25%, citing less favourable financial markets than in the previous year.
Great-West Life reported net earnings of $517 million for the three months ended March 31, 2013, an increase of 15% compared to $449 million in the first quarter of 2012. The increase was due to a rise in sales of group insurance and wealth management products.
Mutual fund companies
Notable developments
Segregated fund sponsors
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Segregated Funds Monthly Update
1 Segregated Fund Assets
In billions of dollars
11.5% 10.2% 9.8% 9.7% 9.7% 9.6% 9.5%
As % of total investment fund assets
$87.7 $86.3$91.5 $93.1 $94.5 $94.8 $94.6
2010 2011 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013
Traditional GWB
70.1%66.2% 66.3% 66.2%
29.9%33.8% 33.8%
66.1%
26.0%
74.0%
33.7%33.9%
66.1%
33.9%
1 Segregated Fund Assets In billions of dollars
2 Segregated Fund Net Flows
In billions of dollars
$4.8 $2.3 $2.2 $1.2 $0.7 $0.2 $0.2 -$0.1 -$0.1
Total segregated fund net flows
Annual net flows
$5.7$5.3
$4.2$3.8
$(0.9)
$(3.0)
$(2.0)$(2.5)
2009 2010 2011 2012
3-mos net flows
$1.3
$0.7 $0.9$0.6
$0.2
($0.7) ($0.7)($0.3)
($0.6) ($0.5)
Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013
GWB
Traditional seg funds
2 Segregated Fund Net Flows In billions of dollars
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3 Segregated Funds: Assets and Net Flows by Asset Class In millions of dollars
Assets Net flows
Apr2013 Share
Apr2013
% ofbeg. assets
Apr2012
YTD2013
% ofbeg. assets
YTD2012
TOTAL SEGREGATED FUNDS
All funds $94,595.3 100.0% ($154.8) -0.2% $173.9 ($271.0) -0.3% $737.1 Money market funds 1,598.0 1.7% (42.4) -2.6% (15.4) (197.3) -11.0% (257.9) Long-term funds 92,997.3 98.3% (112.4) -0.1% 189.3 (73.8) -0.1% 994.9 Fixed income funds 10,972.2 11.6% (11.4) -0.1% 114.9 (294.3) -2.6% 671.6 Mortgage 542.2 0.6% (5.2) -1.0% (2.9) (34.0) -5.9% (10.4) Canadian bond 8,361.1 8.8% (28.9) -0.3% 101.3 (324.5) -3.8% 576.5 Foreign bond 724.0 0.8% 19.6 2.8% 3.1 80.0 12.7% 16.7 High yield bond 1,344.9 1.4% 3.1 0.2% 13.5 (15.9) -1.2% 88.8 Balanced funds 53,501.3 56.6% (26.4) — 215.7 340.4 0.7% 918.7 Income balanced 15,707.1 16.6% 41.2 0.3% 134.5 273.9 1.9% 513.4 Canadian balanced 33,478.6 35.4% (87.7) -0.3% 82.0 30.8 0.1% 401.7 International balanced 4,315.6 4.6% 20.0 0.5% (0.8) 35.7 0.9% 3.6 Equity funds 26,809.5 28.3% (89.0) -0.3% (156.9) (223.2) -0.9% (659.4) Equity income 9,517.1 10.1% (0.7) — (24.1) 106.9 1.2% (28.4) Canadian equity 12,230.5 12.9% (141.8) -1.1% (147.4) (573.0) -4.5% (647.7) International equity 3,752.8 4.0% 22.0 0.6% 9.3 102.4 3.0% (22.8) U.S. equity 1,309.1 1.4% 31.6 2.5% 5.3 140.4 12.9% 39.4 Real estate funds 1,714.2 1.8% 14.4 0.9% 15.6 103.3 6.7% 64.1
GUARANTEED WITHDRAWAL BENEFIT SEGREGATED FUNDS All funds $32,088.7 100.0% $17.2 0.1% $493.2 $236.4 0.8% $1,572.6 Money market funds 295.4 0.9% (14.5) -4.6% 20.6 (70.5) -19.1% (60.2) Long-term funds 31,793.3 99.1% 31.7 0.1% 472.5 307.0 1.0% 1,632.8 Fixed income funds 3,010.6 9.4% 18.2 0.6% 96.0 9.1 0.3% 271.7 Mortgage — — — — — — — — Canadian bond 2,220.2 6.9% 7.0 0.3% 84.2 (26.8) -1.2% 250.4 Foreign bond 389.9 1.2% 9.0 2.4% 4.9 40.7 12.1% 13.5 High yield bond 400.4 1.2% 2.1 0.5% 6.9 (4.7) -1.2% 7.8 Balanced funds 24,184.0 75.4% 5.6 — 329.0 250.3 1.1% 1,209.0 Income balanced 8,632.6 26.9% 18.6 0.2% 142.1 94.0 1.1% 479.8 Canadian balanced 13,115.8 40.9% (34.6) -0.3% 173.0 91.3 0.7% 648.6 International balanced 2,435.6 7.6% 21.6 0.9% 13.9 65.0 2.9% 80.6 Equity funds 4,598.7 14.3% 7.9 0.2% 47.5 47.5 1.1% 152.1 Equity income 1,888.5 5.9% (1.0) -0.1% 15.7 18.7 1.0% 85.5 Canadian equity 1,492.6 4.7% (9.4) -0.6% 0.2 (24.5) -1.7% (14.9) International equity 1,104.8 3.4% 15.8 1.5% 30.5 38.9 3.9% 75.3 U.S. equity 112.9 0.4% 2.5 2.3% 1.1 14.4 16.6% 6.2 Real estate funds — — — — — — — —
TRADITIONAL SEGREGATED FUNDS
All funds $62,506.7 100.0% ($172.0) -0.3% ($319.3) ($507.5) -0.8% ($835.5) Money market funds 1,302.7 2.1% (27.9) -2.1% (36.0) (126.7) -8.9% (197.7) Long-term funds 61,204.0 97.9% (144.1) -0.2% (283.3) (380.7) -0.6% (637.8) Fixed income funds 7,961.7 12.7% (29.6) -0.4% 18.9 (303.4) -3.7% 399.9 Mortgage 542.2 0.9% (5.2) -1.0% (2.9) (34.0) -5.9% (10.4) Canadian bond 6,140.9 9.8% (35.9) -0.6% 17.1 (297.6) -4.7% 326.1 Foreign bond 334.0 0.5% 10.5 3.2% (1.8) 39.4 13.5% 3.2 High yield bond 944.5 1.5% 1.0 0.1% 6.5 (11.2) -1.2% 81.0 Balanced funds 29,317.3 46.9% (32.1) -0.1% (113.3) 90.2 0.3% (290.3) Income balanced 7,074.4 11.3% 22.6 0.3% (7.6) 179.9 2.7% 33.6 Canadian balanced 20,362.8 32.6% (53.1) -0.3% (91.0) (60.5) -0.3% (246.9) International balanced 1,880.0 3.0% (1.6) -0.1% (14.7) (29.3) -1.6% (76.9) Equity funds 22,210.8 35.5% (96.9) -0.4% (204.5) (270.7) -1.2% (811.5) Equity income 7,628.7 12.2% 0.3 — (39.8) 88.2 1.2% (113.9) Canadian equity 10,737.9 17.2% (132.4) -1.2% (147.6) (548.5) -4.9% (632.8) International equity 2,648.0 4.2% 6.2 0.2% (21.2) 63.5 2.6% (98.0) U.S. equity 1,196.3 1.9% 29.0 2.5% 4.2 126.0 12.6% 33.2 Real estate funds 1,714.2 2.7% 14.4 0.9% 15.6 103.3 6.7% 64.1
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4 Segregated Funds: Assets and Gross Sales by Asset Class In millions of dollars
Assets Gross sales
Apr2013 Share
Apr2013
% ofbeg. assets
Apr2012
YTD2013
% ofbeg. assets
YTD2012
TOTAL SEGREGATED FUNDS
All funds $94,595.3 100.0% $728.7 0.8% $989.7 $3,577.2 3.9% $4,485.2 Money market funds 1,598.0 1.7% 45.0 2.7% 69.9 215.1 12.0% 290.2 Long-term funds 92,997.3 98.3% 683.8 0.7% 919.8 3,362.1 3.7% 4,195.0 Fixed income funds 10,972.2 11.6% 143.3 1.3% 191.3 679.5 6.1% 877.1 Mortgage 542.2 0.6% 6.8 1.2% 6.6 24.2 4.2% 35.6 Canadian bond 8,361.1 8.8% 99.5 1.2% 146.0 449.3 5.2% 672.6 Foreign bond 724.0 0.8% 10.8 1.5% 6.7 45.7 7.3% 21.8 High yield bond 1,344.9 1.4% 26.2 2.0% 32.1 160.2 11.9% 147.1 Balanced funds 53,501.3 56.6% 339.6 0.6% 544.9 1,656.4 3.3% 2,409.7 Income balanced 15,707.1 16.6% 82.7 0.5% 160.7 413.3 2.8% 628.2 Canadian balanced 33,478.6 35.4% 233.9 0.7% 349.3 1,149.6 3.6% 1,625.5 International balanced 4,315.6 4.6% 23.1 0.5% 34.9 93.5 2.3% 156.0 Equity funds 26,809.5 28.3% 178.1 0.7% 169.6 902.9 3.5% 841.6 Equity income 9,517.1 10.1% 92.7 1.0% 75.8 457.8 5.1% 372.9 Canadian equity 12,230.5 12.9% 44.7 0.4% 49.8 244.4 1.9% 294.0 International equity 3,752.8 4.0% 24.3 0.7% 36.1 120.2 3.5% 135.3 U.S. equity 1,309.1 1.4% 16.5 1.3% 7.9 80.5 7.4% 39.4 Real estate funds 1,714.2 1.8% 22.7 1.3% 14.1 123.4 8.0% 66.7
GUARANTEED WITHDRAWAL BENEFIT SEGREGATED FUNDS All funds $32,088.7 100.0% $132.9 0.4% $456.9 $721.9 2.3% $1,693.3 Money market funds 295.4 0.9% 3.1 1.0% 36.8 24.1 6.5% 106.2 Long-term funds 31,793.3 99.1% 129.8 0.4% 420.2 697.7 2.3% 1,587.1 Fixed income funds 3,010.6 9.4% 35.2 1.2% 75.6 162.3 5.5% 229.5 Mortgage — — — — — — — — Canadian bond 2,220.2 6.9% 25.5 1.2% 65.2 114.8 5.2% 202.8 Foreign bond 389.9 1.2% 3.7 1.0% 3.3 17.6 5.2% 6.3 High yield bond 400.4 1.2% 5.9 1.5% 7.0 29.8 7.4% 20.4 Balanced funds 24,184.0 75.4% 77.9 0.3% 296.3 440.2 1.9% 1,169.0 Income balanced 8,632.6 26.9% 12.8 0.1% 102.2 76.0 0.9% 333.5 Canadian balanced 13,115.8 40.9% 56.0 0.4% 169.4 328.6 2.6% 724.0 International balanced 2,435.6 7.6% 9.1 0.4% 24.7 35.6 1.6% 111.6 Equity funds 4,598.7 14.3% 16.7 0.4% 48.4 95.3 2.2% 188.6 Equity income 1,888.5 5.9% 10.8 0.6% 17.9 58.8 3.2% 78.1 Canadian equity 1,492.6 4.7% 3.0 0.2% 7.8 18.6 1.3% 41.3 International equity 1,104.8 3.4% 2.4 0.2% 22.7 15.2 1.5% 67.0 U.S. equity 112.9 0.4% 0.5 0.5% — 2.8 3.2% 2.2 Real estate funds — — — — — — — —
TRADITIONAL SEGREGATED FUNDS All funds $62,506.7 100.0% $595.9 1.0% $532.8 $2,855.3 4.7% $2,791.9 Money market funds 1,302.7 2.1% 41.8 3.2% 33.1 190.9 13.4% 184.0 Long-term funds 61,204.0 97.9% 554.0 0.9% 499.7 2,664.4 4.5% 2,607.9 Fixed income funds 7,961.7 12.7% 108.2 1.4% 115.7 517.2 6.3% 647.6 Mortgage 542.2 0.9% 6.8 1.2% 6.6 24.2 4.2% 35.6 Canadian bond 6,140.9 9.8% 74.0 1.2% 80.7 334.5 5.2% 469.8 Foreign bond 334.0 0.5% 7.1 2.2% 3.4 28.1 9.6% 15.5 High yield bond 944.5 1.5% 20.3 2.2% 25.0 130.4 13.8% 126.7 Balanced funds 29,317.3 46.9% 261.7 0.9% 248.6 1,216.2 4.4% 1,240.7 Income balanced 7,074.4 11.3% 69.9 1.0% 58.6 337.2 5.1% 294.8 Canadian balanced 20,362.8 32.6% 177.9 0.9% 179.8 821.0 4.3% 901.5 International balanced 1,880.0 3.0% 14.0 0.7% 10.2 57.9 3.2% 44.4 Equity funds 22,210.8 35.5% 161.4 0.7% 121.2 807.6 3.7% 653.0 Equity income 7,628.7 12.2% 81.9 1.1% 57.9 399.0 5.5% 294.8 Canadian equity 10,737.9 17.2% 41.7 0.4% 42.0 225.8 2.0% 252.7 International equity 2,648.0 4.2% 21.9 0.8% 13.4 105.0 4.3% 68.2 U.S. equity 1,196.3 1.9% 16.0 1.4% 7.9 77.8 7.8% 37.2 Real estate funds 1,714.2 2.7% 22.7 1.3% 14.1 123.4 8.0% 66.7
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5 Segregated Funds: Assets and Redemptions by Asset Class In millions of dollars
Assets Redemptions
Apr2013 Share
Apr2013
% ofbeg. assets
Apr2012
YTD2013
% ofbeg. assets
YTD2012
TOTAL SEGREGATED FUNDS
All funds $94,595.3 100.0% $859.6 0.9% $804.9 $3,850.5 4.2% $3,687.6 Money market funds 1,598.0 1.7% 74.8 4.6% 63.1 289.1 16.1% 302.3 Long-term funds 92,997.3 98.3% 784.8 0.8% 741.8 3,561.3 4.0% 3,385.4 Fixed income funds 10,972.2 11.6% 153.3 1.4% 127.2 703.6 6.3% 556.3 Mortgage 542.2 0.6% 8.4 1.5% 7.1 36.2 6.3% 35.4 Canadian bond 8,361.1 8.8% 88.7 1.1% 70.2 397.2 4.6% 310.0 Foreign bond 724.0 0.8% 5.8 0.8% 2.9 25.2 4.0% 14.1 High yield bond 1,344.9 1.4% 50.4 3.8% 47.0 244.9 18.2% 196.8 Balanced funds 53,501.3 56.6% 365.4 0.7% 343.0 1,656.1 3.3% 1,565.7 Income balanced 15,707.1 16.6% 89.2 0.6% 70.7 364.6 2.5% 316.6 Canadian balanced 33,478.6 35.4% 257.0 0.8% 242.3 1,171.2 3.7% 1,109.9 International balanced 4,315.6 4.6% 19.2 0.4% 30.1 120.3 3.0% 139.2 Equity funds 26,809.5 28.3% 252.0 0.9% 259.8 1,135.0 4.3% 1,209.6 Equity income 9,517.1 10.1% 91.3 1.0% 93.9 421.2 4.7% 418.2 Canadian equity 12,230.5 12.9% 117.5 0.9% 127.7 538.6 4.3% 620.4 International equity 3,752.8 4.0% 31.5 0.9% 29.4 129.5 3.8% 130.1 U.S. equity 1,309.1 1.4% 11.7 0.9% 8.7 45.6 4.2% 40.9 Real estate funds 1,714.2 1.8% 14.1 0.8% 11.8 66.7 4.3% 53.8
GUARANTEED WITHDRAWAL BENEFIT SEGREGATED FUNDS All funds $32,088.7 100.0% $120.1 0.4% $102.2 $523.7 1.7% $458.8 Money market funds 295.4 0.9% 3.5 1.1% 4.7 17.1 4.6% 23.4 Long-term funds 31,793.3 99.1% 116.6 0.4% 97.5 506.6 1.7% 435.4 Fixed income funds 3,010.6 9.4% 18.3 0.6% 10.5 68.4 2.3% 44.0 Mortgage — — — — — — — — Canadian bond 2,220.2 6.9% 12.4 0.6% 7.7 48.2 2.2% 33.5 Foreign bond 389.9 1.2% 0.8 0.2% 0.8 3.7 1.1% 3.2 High yield bond 400.4 1.2% 5.1 1.3% 2.1 16.5 4.1% 7.3 Balanced funds 24,184.0 75.4% 80.5 0.3% 70.8 358.4 1.5% 315.2 Income balanced 8,632.6 26.9% 26.6 0.3% 21.4 117.5 1.4% 96.1 Canadian balanced 13,115.8 40.9% 45.8 0.3% 40.1 203.7 1.6% 177.8 International balanced 2,435.6 7.6% 8.1 0.3% 9.3 37.2 1.7% 41.3 Equity funds 4,598.7 14.3% 17.8 0.4% 16.3 79.9 1.8% 76.2 Equity income 1,888.5 5.9% 8.4 0.4% 7.0 37.8 2.1% 30.9 Canadian equity 1,492.6 4.7% 6.0 0.4% 5.3 26.2 1.8% 29.6 International equity 1,104.8 3.4% 3.0 0.3% 3.6 13.8 1.4% 14.2 U.S. equity 112.9 0.4% 0.5 0.4% 0.3 2.1 2.5% 1.4 Real estate funds — — — — — — — —
TRADITIONAL SEGREGATED FUNDS All funds $62,506.7 100.0% $739.5 1.2% $702.7 $3,326.7 5.5% $3,228.9 Money market funds 1,302.7 2.1% 71.3 5.4% 58.4 272.0 19.1% 278.9 Long-term funds 61,204.0 97.9% 668.2 1.1% 644.3 3,054.7 5.2% 2,950.0 Fixed income funds 7,961.7 12.7% 135.0 1.7% 116.7 635.2 7.7% 512.3 Mortgage 542.2 0.9% 8.4 1.5% 7.1 36.2 6.3% 35.4 Canadian bond 6,140.9 9.8% 76.3 1.2% 62.5 349.0 5.5% 276.5 Foreign bond 334.0 0.5% 5.0 1.5% 2.2 21.5 7.4% 11.0 High yield bond 944.5 1.5% 45.3 4.8% 44.9 228.5 24.2% 189.5 Balanced funds 29,317.3 46.9% 284.8 1.0% 272.3 1,297.7 4.7% 1,250.5 Income balanced 7,074.4 11.3% 62.6 0.9% 49.3 247.1 3.8% 220.5 Canadian balanced 20,362.8 32.6% 211.1 1.0% 202.2 967.6 5.0% 932.1 International balanced 1,880.0 3.0% 11.1 0.6% 20.8 83.1 4.6% 97.9 Equity funds 22,210.8 35.5% 234.3 1.0% 243.5 1,055.1 4.8% 1,133.4 Equity income 7,628.7 12.2% 83.0 1.1% 86.9 383.5 5.3% 387.3 Canadian equity 10,737.9 17.2% 111.5 1.0% 122.4 512.4 4.6% 590.8 International equity 2,648.0 4.2% 28.6 1.1% 25.9 115.7 4.8% 115.9 U.S. equity 1,196.3 1.9% 11.2 1.0% 8.4 43.5 4.3% 39.5 Real estate funds 1,714.2 2.7% 14.1 0.8% 11.8 66.7 4.3% 53.8
11
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Segregated Funds Monthly Update
6 Stand-alone Funds versus Segregated Funds of Funds (SFoFs)—Assets and Net Flows In millions of dollars
Assets Net flows
Apr2013 Share
Apr2013
% ofbeg. assets
Apr2012
YTD2013
% ofbeg. assets
YTD2012
All funds $94,595.3 100.0% ($154.8) -0.2% $173.9 ($271.0) -0.3% $737.1 Segregated fund of funds 24,938.9 26.4% 93.4 0.4% 178.1 488.6 2.1% 854.8 Stand-alone funds 69,656.4 73.6% (248.2) -0.4% (4.3) (759.6) -1.1% (117.8) Money market funds 1,598.0 1.7% (42.4) -2.6% (15.4) (197.3) -11.0% (257.9) Long-term funds 68,058.4 71.9% (205.8) -0.3% 11.1 (562.3) -0.8% 140.1 Fixed income funds 10,066.4 10.6% (31.2) -0.3% 59.0 (357.4) -3.5% 501.2 Mortgage 542.2 0.6% (5.2) -1.0% (2.9) (34.0) -5.9% (10.4) Canadian bond 7,455.2 7.9% (48.7) -0.7% 45.4 (387.6) -5.0% 406.1 Foreign bond 724.0 0.8% 19.6 2.8% 3.1 80.0 12.7% 16.7 High yield bond 1,344.9 1.4% 3.1 0.2% 13.5 (15.9) -1.2% 88.8 Balanced funds 31,932.5 33.8% (81.3) -0.3% 123.3 (3.7) — 320.3 Income balanced 13,780.9 14.6% 31.5 0.2% 108.4 227.1 1.8% 383.6 Canadian balanced 17,714.8 18.7% (123.0) -0.7% 17.9 (261.6) -1.5% (50.0) International balanced 436.9 0.5% 10.2 2.4% (3.0) 30.8 7.9% (13.4) Equity funds 24,345.3 25.7% (107.8) -0.4% (186.8) (304.5) -1.3% (745.4) Equity income 9,032.2 9.5% (8.1) -0.1% (30.6) 60.8 0.7% (66.5) Canadian equity 11,049.8 11.7% (143.8) -1.3% (147.5) (582.3) -5.1% (650.5) International equity 2,957.7 3.1% 12.7 0.4% (14.0) 77.2 2.9% (68.0) U.S. equity 1,305.5 1.4% 31.4 2.5% 5.4 139.8 12.9% 39.5 Real estate funds 1,714.2 1.8% 14.4 0.9% 15.6 103.3 6.7% 64.1
Net flows = gross sales + transfers in - redemptions - transfers out.
5 Stand-Alone Funds versus Segregated Funds of Funds (SFoFs)—Flow TrendsIn million of dollars
3-month net flows
-150 -87
82224
-201
111
-74
11
-216 -240
-444 -464
605
380505 531
404 384
750 724
428 397 367 412
-800
-400
0
400
800
1200
Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13
SFoFs
Stand-alone funds
CHANGE MIN ON SCALE!
Monthly redemption rates
0%
1%
2%
Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13
SFoFs
Stand-alone funds
Insurance Advisory Service | May 2013
12
7 Segregated Funds: Asset Growth by Asset Class
Apr 2013 YTD 2013
Chg. inassets
Net flows as % of
beg. assetsEst. mkt.
effect
Net flows as % of
beg. assetsChg. inassets
Est. mkt.effect
Long-term funds -0.2% -0.1% — 3.6% -0.1% 3.7% Fixed income funds 0.3% -0.1% 0.4% -1.5% -2.6% 1.1%
Mortgage -0.8% -1.0% 0.2% -5.4% -5.9% 0.6%
Canadian bond 0.1% -0.3% 0.4% -2.7% -3.8% 1.1%
Foreign bond 3.0% 2.8% 0.2% 15.0% 12.7% 2.3%
High yield bond 0.8% 0.2% 0.5% 0.1% -1.2% 1.3%
Balanced funds 0.2% — 0.2% 5.1% 0.7% 4.4%
Income balanced 0.7% 0.3% 0.4% 6.3% 1.9% 4.4%
Canadian balanced -0.2% -0.3% 0.1% 4.4% 0.1% 4.3%
International balanced 0.7% 0.5% 0.2% 6.4% 0.9% 5.5%
Equity funds -1.1% -0.3% -0.8% 2.5% -0.9% 3.4%
Equity income -0.3% — -0.3% 5.5% 1.2% 4.3%
Canadian equity -2.8% -1.1% -1.7% -3.1% -4.5% 1.5%
International equity 1.5% 0.6% 0.9% 9.6% 3.0% 6.6%
U.S. equity 2.9% 2.5% 0.4% 20.2% 12.9% 7.3%
Real estate funds 1.6% 0.9% 0.7% 10.5% 6.7% 3.9%
13
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8 Segregated Funds: Flow Activity by Asset Class In millions of dollars
Grosssales
(1)
Net newmoney
(1-2)Redemptions
(2)
YTD 2013
All funds $3,577 $3,850 $(273) $(271) Money market funds 215 289 (74) (197) Long-term funds 3,362 3,561 (199) (74) Fixed income funds 680 704 (24) (294)
Balanced funds 1,656 1,656 — 340
Equity funds 903 1,135 (232) (223)
Equity income 458 421 37 107
Canadian equity 244 539 (294) (573)
International equity 120 130 (9) 102
U.S. equity 81 46 35 140
Real estate funds 123 67 57 103
YEAR-OVER-YEAR CHANGE All funds -20.2% 4.4% N/A N/A Money market funds -25.9% -4.3% N/A N/A Long-term funds -19.9% 5.2% N/A N/A Bond funds -22.5% 26.5% N/A N/A
Balanced funds -31.3% 5.8% -100.0% -62.9%
Equity funds 7.3% -6.2% N/A N/A
Equity income 22.8% 0.7% N/A N/A
Canadian equity -16.9% -13.2% N/A N/A
International equity -11.1% -0.4% N/A N/A
U.S. equity 104.4% 11.5% N/A 256.5%
Real estate funds 85.1% 23.9% 342.1% 61.2%
Net flows(Net new money
+ transfers)
Insurance Advisory Service | May 2013
14
9 Segregated Funds: Redemption Trends
In billions of dollars
Annual redemption rates
$0
$5
$10
$15
Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13
0%
5%
10%
15%
20%
Traditional seg fund redemption rate GWB redemption rate
GWB redemptionsTraditional seg
fund redemptions
9 Segregated Funds: Redemption Trends In billions of dollars
Gross sales-to-redemption ratio
0%
50%
100%
150%
200%
Apr11
Jul11
Oct11
Jan12
Apr12
Jul12
Oct12
Jan13
Apr13
(-) Net new money
(+) Net new money
Complexes with positive net flows
0
10
20
30
Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13
0%
50%
100%As % of total
15
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Segregated Funds Monthly Update
10 Best-selling Segregated Funds: Major Asset Classes Ranked by April 2013 net flows in millions of dollars
Apr 2013 YTD 2013
AssetsChange in
assetsNet
flows% of
beg. assetsChange in
assets% of
beg. assets
U.S. equity multi-cap funds $894.2 3.7% $27.5 3.2% 25.0% $113.9 15.9% Empire Life - American Value Fund 33.2 23.6% 6.1 22.8% 33.5% 15.8 63.3% London Life - U.S. Equity 184.1 1.0% 3.4 1.9% 11.1% 14.3 8.7% Canada Life - Generations U.S. Value Fund (LL) 13.6 24.0% 2.6 23.5% 103.5% 5.8 86.5% Manulife - Mawer U.S. Equity - Investment Plus 19.0 12.3% 2.1 12.6% 145.8% 10.1 130.4% Great-West Life - U.S. Value (LLIM) 16.8 11.5% 1.7 11.1% 62.5% 4.8 46.1% Canadian income balanced funds $14,911.1 0.5% $24.0 0.2% 5.7% $189.3 1.3% Manulife - Monthly High Income - IncomePlus 2,591.7 1.5% 33.5 1.3% 11.0% 129.4 5.5% Manulife - Monthly High Income - Investment Plus 412.7 4.8% 18.2 4.6% 35.5% 85.9 28.2% Manulife - Fidelity Monthly Income - IncomePlus 966.5 3.0% 12.7 1.3% 11.4% 52.3 6.0% Standard Life - Ideal 2.0 Monthly Income Signature 75/100 24.7 39.5% 6.9 39.1% — 24.6 — Standard Life - Ideal 2.0 Monthly Income Signature 100/100 19.1 50.7% 6.4 50.2% — 19.0 — International equity global funds $3,107.6 2.3% $21.6 0.7% 10.6% $80.5 2.9% Industrial Alliance - Ecoflextra Global Diversified (Catapult) 29.0 24.6% 5.4 23.2% 52.7% 8.6 45.3% Manulife - CI Cambridge 80/20 Bundle Fund - IncomePlus 97.4 6.5% 5.0 5.5% 19.2% 10.3 12.6% London Life - Foreign Equity Fund (Mackenzie) 54.1 11.0% 5.0 10.2% 43.1% 12.1 32.2% Manulife - Fidelity NorthStar - Investment Plus 17.5 42.6% 4.5 36.3% 53.9% 3.8 33.4% Manulife - CI Cambridge Bundle - IncomePlus 83.8 6.2% 3.9 4.9% 33.3% 16.3 25.9% International balanced funds $4,315.6 0.7% $20.0 0.5% 6.4% $35.9 0.9% SunWise Elite Plus - Portfolio Select Series i70/e30 Portfolio 10.0 265.1% 7.2 260.7% 306.0% 7.4 297.4% Manulife - Simplicity Global Balanced Portfolio - IncomePlus 299.3 2.5% 5.0 1.7% 8.6% 10.8 3.9% Standard Life - Ideal 2.0 Dividend Income Signature 75/100 12.1 35.3% 3.1 34.3% — 12.0 — SunWise Essential 2 - Portfolio Series Balanced Growth Fund Estate 5.6 79.3% 2.2 224.7% 502.3% 4.3 366.3% Empire Life - Global Balanced Fund 34.4 7.0% 1.9 5.8% 41.7% 8.7 35.9% Foreign bond funds $724.0 3.0% $19.6 2.8% 15.0% $80.0 12.7% Manulife - Global Bond - Investment Plus 121.7 7.3% 6.8 6.0% 27.9% 22.2 23.3% Manulife - Strategic Income - IncomePlus 227.3 3.2% 4.2 1.9% 9.5% 13.0 6.3% Manulife - Strategic Income Seg Fund - GIF 69.1 3.2% 1.5 2.2% 10.8% 4.5 7.2% Manulife - Strategic Income - Investment Plus 18.8 5.7% 0.8 4.4% 25.1% 3.0 20.3% Equitable Life - Templeton Global Bond Fund 21.0 2.7% 0.5 2.4% 15.2% 2.4 13.1% International income balanced funds $796.0 3.6% $17.2 2.2% 18.3% $85.1 12.6% Manulife - Yield Opportunities - Investment Plus 48.6 9.5% 3.8 8.6% 29.8% 8.7 23.2% SunWise Essential 2 - CI Signature Diversified Yield Income 22.6 27.5% 3.7 947.1% 258.2% 12.1 124.7% Manulife - Strategic Balanced Yield - Investment Plus 18.1 19.1% 2.8 18.2% 909.2% 15.8 881.3% SunWise Elite Plus - Signature Global Income & Growth 20.7 9.0% 1.5 8.1% 43.5% 5.1 35.5% SSQ - ASTRA UBS Global High Income 31.0 6.4% 1.3 4.6% 38.0% 6.9 30.6% Real estate funds $1,714.2 1.6% $14.4 0.9% 10.5% $103.3 6.7% London Life - Real Estate - GWLIM 476.1 2.2% 7.2 1.5% 19.4% 44.0 11.0% Canada Life - Generations Real Estate Fund (GWL) 258.8 2.4% 4.5 1.8% 16.5% 31.6 14.2% Great-West Life - Real Estate (G) 917.1 0.9% 2.2 0.2% 5.0% 24.8 2.8% SSQ - ASTRA Morgan Stanley Global Real Estate 2.3 27.9% 0.4 21.2% 133.4% 1.1 113.1% SSQ - ASTRA Presima Global Real Estate Enh Yld 1.1 7.8% — 3.9% 20.0% 0.1 9.7% International equity income funds $231.8 7.7% $11.7 5.5% 48.4% $57.0 36.5% Standard Life - Ideal 2.0 US Dividend Growth Signature 75/100 6.4 47.5% 2.0 46.2% — 6.2 — Standard Life - Ideal 2.0 Global Dividend Growth Signature 100/100 3.6 83.2% 1.6 79.6% — 3.5 — Standard Life - Ideal 2.0 Global Dividend Growth Signature 75/100 4.2 55.1% 1.4 51.7% — 4.0 — Standard Life - Ideal 2.0 US Dividend Growth Signature 100/100 4.3 45.2% 1.3 44.0% — 4.2 — Empire Life - Global Dividend Growth Fund 26.6 6.7% 1.3 5.1% 57.2% 8.0 47.3%
Netflows
Insurance Advisory Service | May 2013
16
11 Largest Segregated Fund Complexes and Funds Ranked by April 2013 assets in millions of dollars
April 2013 1-yr change
Assets ShareChangein assets Share
Changein assets
COMPLEXES
All funds $94,595.3 100.0% -0.2% 100.0% 5.8% 1 Manulife Investments 26,348.7 27.9% -0.3% -0.7% 3.1% 2 Great-West Life 24,827.7 26.2% -0.3% 0.3% 7.2% 3 Sun Life 12,596.6 13.3% 0.2% -0.5% 2.0% 4 Industrial Alliance 10,198.2 10.8% -0.2% 0.1% 6.8% 5 Empire Life 5,104.7 5.4% 0.4% 0.5% 15.9% 6 Standard Life 4,121.2 4.4% 1.4% 0.6% 22.7% 7 Desjardins Financial Security 3,440.5 3.6% 0.2% — 6.8% 8 Primerica* 2,668.8 2.8% 0.5% — 5.4% 9 Transamerica Life Canada* 1,491.0 1.6% -10.4% -0.4% -17.3% 10 SSQ Vie 1,248.3 1.3% 1.4% 0.2% 23.0% 11 Equitable Life 781.8 0.8% -0.3% — 8.9% 12 Co-operators Life* 452.2 0.5% 0.2% — 1.6% 13 RBC Insurance 438.2 0.5% 2.2% 0.1% 24.7% 14 CI Investments 282.4 0.3% -1.2% -0.1% -11.1% 15 TD Asset Management 223.8 0.2% -2.8% -0.1% -18.4% 16 Assumption Life* 160.7 0.2% -2.0% — 5.7% 17 FaithLife Financial* 133.4 0.1% -2.2% — -10.0% 18 L’Union Vie 28.6 — 0.7% — 1.8% 19 Franklin Templeton* 24.8 — 0.4% — -2.2% 20 AIC 15.6 — — — -22.8% Top 20 94,587.2 100.0% -0.2% — 5.8%
FUNDS All funds $94,595.3 100.0% -0.2% 100.0% 5.8% 1 Manulife - Monthly High Income - IncomePlus 2,592 2.7% — 2.7% — 2 London Life - Dividend (LC) 1,719 1.8% — 1.8% — 3 London Life - Conservative Profile Fund 1,510 1.6% — 1.6% — 4 Manulife - Fidelity Canadian Asset Allocation - IncomePlus 1,469 1.6% — 1.6% — 5 Manulife - CI Harbour Growth & Income - IncomePlus 1,278 1.4% — 1.4% — 6 London Life - Balanced Profile Fund 1,240 1.3% — 1.3% — 7 Manulife - Monthly High Income - GIF 1,102 1.2% — 1.2% — 8 London Life - Income (LC) 1,070 1.1% — 1.1% — 9 London Life - Moderate Profile Fund 1,039 1.1% — 1.1% — 10 Primerica Life - Asset Builder Fund 3 1,010 1.1% — 1.1% — 11 Manulife - Fidelity Monthly Income - IncomePlus 967 1.0% — 1.0% — 12 Great-West Life - Real Estate (G) 917 1.0% — 1.0% — 13 Industrial Alliance - Ecoflex Diversified 903 1.0% — 1.0% — 14 Manulife - Simplicity Balanced Portfolio - IncomePlus 870 0.9% — 0.9% — 15 Empire Life - Dividend Growth Fund 843 0.9% — 0.9% — 16 Manulife - Simplicity Growth Portfolio - IncomePlus 829 0.9% — 0.9% — 17 DFS GIF - Fidelity Canadian Balanced 5 808 0.9% — 0.9% — 18 London Life - Bond 793 0.8% — 0.8% — 19 London Life - Equity 762 0.8% — 0.8% — 20 Primerica Life - Asset Builder Fund 4 753 0.8% — 0.8% — Top 20 22,474.5 23.8% — 23.8% —
*Indicates company information is estimated. **Primerica provides quarterly sales activity information. ***Great-West Life includes Canada Life, Investors Group, London Life, and Mackenzie.
17
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Segregated Funds Monthly Update
12 Best Selling Segregated Fund Complexes and Funds Ranked by April 2013 net flows in millions of dollars
Net flows
Apr2013
% ofbeg. assets
Apr2012
YTD2013
YTD2012
% ofbeg. assets
COMPLEXES
Industry ($154.8) -0.2% $173.9 ($271.0) -0.3% $737.1 1 Standard Life 44.9 1.1% 55.3 209.1 5.6% 215.6 2 SSQ Vie 10.8 0.9% 30.3 64.1 5.6% 94.7 3 RBC Insurance 8.9 2.1% 1.2 25.2 6.3% 6.7 4 Empire Life 5.9 0.1% (11.7) 70.4 1.4% (23.4) 5 Co-operators Life* 0.7 0.2% (1.0) 12.9 3.0% 8.9 6 Franklin Templeton* (0.1) -0.5% (0.4) 0.1 0.6% (2.0) 7 L’Union Vie (0.1) -0.5% — (0.2) -0.8% 1.0 8 AIC (0.3) -2.2% (0.8) (1.3) -8.2% (4.4) 9 FaithLife Financial* (3.1) -2.3% (1.1) (22.5) -14.9% (1.3) 10 Assumption Life* (3.3) -2.0% 0.3 9.1 6.0% 2.8 11 Equitable Life (3.3) -0.4% 0.4 1.8 0.2% 6.1 12 Primerica* (3.7) -0.1% (1.4) 13.3 0.5% 34.3 13 Great-West Life (4.4) — (22.4) 106.9 0.4% 32.1 14 CI Investments (4.6) -1.6% (6.1) (18.7) -6.5% (30.6) 15 Desjardins Financial Security (5.5) -0.2% 38.4 (21.6) -0.6% 108.3 16 TD Asset Management (7.1) -3.1% (5.4) (24.6) -10.3% (30.7) 17 Transamerica Life Canada* (17.4) -1.0% (23.1) (77.2) -4.6% (67.8) 18 Industrial Alliance (20.1) -0.2% 15.4 16.4 0.2% 223.8 19 Sun Life (61.8) -0.5% (19.1) (287.8) -2.3% 6.3 20 Manulife Investments (90.8) -0.3% 125.2 (346.0) -1.3% 157.2 Top 20 (154.7) -0.2% 174.2 (270.5) -0.3% 737.6
FUNDS Industry ($154.8) -0.2% $173.9 ($271.0) -0.3% $737.1 1 Manulife - Monthly High Income - IncomePlus 41.7 1.7% 51.1 91.8 4.0% 137.3 2 Manulife - Monthly High Income - Investment Plus 26.6 8.2% 9.8 50.4 17.3% 20.7 3 Manulife - Mawer Diversified Investment - IncomePlus 22.2 3.6% 11.3 42.6 7.3% 28.8 4 London Life - Conservative Profile Fund 19.3 1.3% 54.7 50.9 3.6% 78.9 5 London Life - Dividend (LC) 18.6 1.1% 6.1 (4.6) -0.3% (14.8) 6 Empire Life - Dividend Balanced Fund 15.6 4.4% 9.8 58.7 19.3% 29.1 7 London Life - Income (LC) 15.5 1.5% 37.2 35.5 3.6% 78.0 8 London Life - Real Estate - GWLIM 15.4 3.5% 2.9 32.4 8.4% 4.0 9 Manulife - Fidelity Monthly Income - IncomePlus 14.7 1.7% 37.5 49.4 5.9% 103.3 10 Manulife - Canadian Balanced - IncomePlus 14.7 6.2% 12.5 37.5 18.0% 25.8 11 Great-West Life - Real Estate (G) 12.3 1.4% 13.1 21.2 2.5% 26.1 12 Canada Life - Generations Real Estate Fund (GWL) 12.2 5.3% 5.6 24.8 11.6% 8.9 13 Canada Life - Generations Enhanced Dividend Fund (Laketon) 11.5 1.6% (2.7) 15.7 2.3% (10.1) 14 London Life - Moderate Profile Fund 10.7 1.1% 8.9 12.4 1.3% 6.3 15 SunWise Elite Plus - CI Select Income Advantage Managed Fund 10.5 21.3% 0.6 27.5 85.2% 3.4 16 Industrial Alliance - SRP Strategic Corporate Bond Ecoflextra 10.5 8.0% 0.9 21.4 18.2% — 17 Canada Life - Generations Balanced Fund (Bissett) 9.9 9.3% 1.0 18.6 19.9% 4.7 18 London Life - Balanced Profile Fund 9.3 0.8% 0.5 5.5 0.5% (9.5) 19 Manulife - Mawer Diversified Investment - Investment Plus 8.1 18.3% 4.7 10.8 27.0% 7.0 20 Manulife - Fidelity Monthly Income - Investment Plus 7.2 5.2% 11.2 14.5 11.4% 20.1 Top 20 306.6 2.2% 276.7 616.8 5.5% 548.0 *Indicates company information is estimated. **Primerica provides quarterly sales activity information. ***Great-West Life includes Canada Life, Investors Group, London Life, and Mackenzie.
Insurance Advisory Service | May 2013
18
13 Segregated Fund Gross Sales—All Funds Ranked by April 2013 gross sales in millions of dollars
Apr2013
% ofbeg. assets
Apr2012
% ofbeg. assets
YTD2013
YTD2012
Industry $728.7 0.8% $989.7 $3,577.2 3.9% $4,485.2 1 Great-West Life 283.3 1.1% 251.1 1,380.3 5.7% 1,301.6
2 Manulife Investments 101.2 0.4% 295.7 533.8 2.1% 930.7
3 Standard Life 92.2 2.3% 96.8 401.1 10.7% 391.5
4 Industrial Alliance 82.0 0.8% 103.9 420.0 4.4% 586.0
5 Empire Life 72.3 1.4% 39.7 363.9 7.4% 243.9
6 Sun Life 36.5 0.3% 60.1 166.7 1.4% 355.9
7 SSQ Vie 22.3 1.8% 30.8 117.0 10.2% 123.4
8 RBC Insurance 14.5 3.4% 9.4 48.4 12.2% 35.6
9 Desjardins Financial Security 14.1 0.4% 62.1 64.7 1.9% 228.8
10 Equitable Life 9.6 1.2% 9.8 47.6 6.3% 50.1
Top 10 728.1 0.8% 959.4 3,543.5 4.1% 4,247.4
*Primerica provides quarterly sales activity information.
Gross sales
14 Segregated Fund Redemptions—All Funds Ranked by April 2013 redemption in millions of dollars
Apr2013
% ofbeg. assets
Apr2012
% ofbeg. assets
YTD2013
YTD2012
Industry $859.6 0.9% $804.9 $3,850.5 4.2% $3,687.6 1 Great-West Life 287.7 1.2% 273.6 1,272.1 5.3% 1,268.9
2 Manulife Investments 196.4 0.7% 180.7 895.1 3.5% 813.1
3 Industrial Alliance 102.2 1.0% 88.4 403.4 4.2% 363.9
4 Sun Life 98.0 0.8% 73.0 453.9 3.7% 341.2
5 Empire Life 66.8 1.3% 31.4 294.3 6.0% 175.6
6 Standard Life 47.3 1.2% 41.5 191.9 5.1% 175.8
7 Desjardins Financial Security 19.4 0.6% 23.8 85.1 2.6% 120.5
8 Equitable Life 12.9 1.6% 9.4 45.7 6.1% 43.8
9 SSQ Vie 11.5 0.9% 10.1 52.9 4.6% 37.5
10 TD Asset Management 7.1 3.1% 5.4 24.6 10.3% 30.7 Top 10 849.3 1.0% 737.3 3,719.2 4.3% 3,370.8
*Primerica provides quarterly sales activity information. **Great-West Life includes Canada Life, Investors Group, London Life, and Mackenzie.
Redemptions in millions of dollars
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Segregated Funds Monthly Update
15 Largest Segregated Fund Insuring Complexes Ranked by April 2013 assets in millions of dollars
Assets Net flows
Apr2013 Share
Changein assets
% ofbeg. assets
Apr2013
YTD2013
% ofbeg. assets
COMPLEXES
All funds $94,595.3 100.0% -0.2% ($154.8) -0.2% ($271.0) -0.3% 1 Manulife Investments 26,348.7 27.9% -0.3% (90.8) -0.3% (346.0) -1.3%
2 Great-West Life 24,827.7 26.2% -0.3% (4.4) — 106.9 0.4%
3 Sun Life 12,596.6 13.3% 0.2% (61.8) -0.5% (287.8) -2.3%
4 Industrial Alliance 10,198.2 10.8% -0.2% (20.1) -0.2% 16.4 0.2%
5 Empire Life 5,104.7 5.4% 0.4% 5.9 0.1% 70.4 1.4%
6 Standard Life 4,121.2 4.4% 1.4% 44.9 1.1% 209.1 5.6%
7 Desjardins Financial Security 3,440.5 3.6% 0.2% (5.5) -0.2% (21.6) -0.6%
8 Primerica* 2,668.8 2.8% 0.5% (3.7) -0.1% 13.3 0.5%
9 Transamerica Life* 1,991.5 2.1% -8.4% (29.4) -1.4% (121.3) -5.5%
10 SSQ Vie 1,248.3 1.3% 1.4% 10.8 0.9% 64.1 5.6%
11 Equitable Life 781.8 0.8% -0.3% (3.3) -0.4% 1.8 0.2%
12 Co-operators Life* 452.2 0.5% 0.2% 0.7 0.2% 12.9 3.0%
13 RBC Insurance 438.2 0.5% 2.2% 8.9 2.1% 25.2 6.3%
14 Assumption Life* 160.7 0.2% -2.0% (3.3) -2.0% 9.1 6.0%
15 FaithLife Financial* 133.4 0.1% -2.2% (3.1) -2.3% (22.5) -14.9%
16 L’Union Vie 28.6 — 0.7% (0.1) -0.5% (0.2) -0.8%
17 Allianz Life* 24.8 — 0.4% (0.1) -0.5% 0.1 0.6%
18 Unity Life 19.7 — -0.2% (0.1) -0.4% (0.5) -2.5%
19 BMO Life* 8.1 — -1.4% (0.1) -1.3% (0.5) -6.4%
20 TD Life 1.6 — -0.4% — — — —
*Indicates company information is estimated.**Primerica provides quarterly sales activity information.
Insurance Advisory Service | May 2013
20
16 Largest Segregated Fund Complexes Wrapping Mutual Funds Ranked by April 2013 assets in millions of dollars
COMPLEXES
Segregated funds wrapping mutual funds $54,835.0 100.0% -0.1% ($129.6) -0.2% ($337.2) -0.6% 1 Manulife Investments 24,260.4 44.2% -0.2% (69.0) -0.3% (180.5) -0.8% 2 Sun Life 12,284.4 22.4% 0.2% (67.3) -0.5% (304.2) -2.5% 3 Great-West Life 6,516.6 11.9% -0.7% 0.3 — 0.5 — 4 Industrial Alliance 3,215.6 5.9% 0.7% 6.7 0.2% 72.4 2.4% 5 Desjardins Financial Security 2,539.5 4.6% 0.6% 2.4 0.1% 5.8 0.2% 6 Standard Life 2,551.5 4.7% 1.0% 13.3 0.5% 92.1 3.9% 7 Transamerica Life Canada* 1,126.1 2.1% -1.5% (12.4) -1.1% (49.3) -4.4% 8 Equitable Life 677.0 1.2% — (2.6) -0.4% 1.9 0.3% 9 SSQ Vie 427.9 0.8% 0.9% 2.7 0.6% 26.0 6.6% 10 RBC Insurance 390.8 0.7% 2.7% 9.3 2.4% 26.7 7.6% 11 CI Investments 282.4 0.5% -1.2% (4.6) -1.6% (18.7) -6.5% 12 TD Asset Management 223.8 0.4% -2.8% (7.1) -3.1% (24.6) -10.3% 13 Co-operators Life* 193.2 0.4% 0.9% 1.0 0.5% 8.7 4.9% 14 Assumption Life* 97.0 0.2% -1.7% (1.7) -1.7% 7.6 8.5% 15 Franklin Templeton* 24.8 — 0.4% (0.1) -0.5% 0.1 0.6% 16 AIC 15.6 — — (0.3) -2.2% (1.3) -8.2% 17 Invesco* 8.1 — -1.4% (0.1) -1.3% (0.5) -6.4%
FUNDS Segregated funds wrapping mutual funds $54,835.0 100.0% -0.1% ($129.6) -0.2% ($337.2) -0.6% 1 Manulife - Monthly High Income - IncomePlus 2,591.7 4.7% 1.5% 33.5 1.3% 129.4 5.5% 2 Manulife - Fidelity Canadian Asset Allocation - IncomePlus 1,468.7 2.7% -2.7% (35.7) -2.4% (154.6) -9.6% 3 Manulife - CI Harbour Growth & Income - IncomePlus 1,277.6 2.3% -2.0% (16.7) -1.3% (80.9) -6.1% 4 Manulife - Monthly High Income - GIF 1,102.1 2.0% -0.5% (7.7) -0.7% (35.3) -3.3% 5 Manulife - Fidelity Monthly Income - IncomePlus 966.5 1.8% 3.0% 12.7 1.3% 52.3 6.0% 6 Manulife - Simplicity Balanced Portfolio - IncomePlus 870.3 1.6% -0.3% (5.6) -0.6% (17.2) -2.0% 7 Manulife - Simplicity Growth Portfolio - IncomePlus 828.6 1.5% -0.6% (6.2) -0.7% (9.7) -1.2% 8 DFS GIF - Fidelity Canadian Balanced 5 808.2 1.5% 0.1% (3.8) -0.5% (12.5) -1.6% 9 Manulife - Mawer Diversified Investment - IncomePlus 684.6 1.2% 0.1% (1.9) -0.3% 59.3 9.9% 10 Manulife - TD Dividend Income - IncomePlus 643.5 1.2% -1.1% (4.1) -0.6% (16.2) -2.5% 11 Manulife - CI Signature Income & Growth - IncomePlus 547.1 1.0% -0.4% (2.4) -0.4% (8.5) -1.6% 12 Manulife - Fidelity Canadian Asset Allocation - GIF 538.3 1.0% -3.1% (15.2) -2.7% (65.4) -11.0% 13 Manulife - Fidelity Canadian Balanced - IncomePlus 521.0 1.0% -0.3% (1.8) -0.3% (5.2) -1.0% 14 Manulife - CI Harbour Growth & Income - GIF 491.0 0.9% -3.5% (14.0) -2.8% (48.6) -9.3% 15 Manulife - Simplicity Balanced Portfolio - GIF 461.4 0.8% -1.5% (8.1) -1.7% (38.8) -8.0% 16 SunWise Elite Plus - CI Signature High Income Fund 460.7 0.8% 0.8% (5.1) -1.1% 4.2 1.0% 17 Industrial Alliance - Dividend Growth 457.3 0.8% -2.4% (6.1) -1.3% (12.5) -2.7% 18 DFS GIF - FT/Quotential Balanced Growth Portfolio 5 446.2 0.8% 0.1% (0.9) -0.2% (3.9) -0.9% 19 Manulife - Monthly High Income - Investment Plus 412.7 0.8% 4.8% 18.2 4.6% 85.9 28.2% 20 Manulife - Dynamic Power Balanced - IncomePlus 404.8 0.7% -4.0% (11.4) -2.7% (38.5) -8.6% Top 20 15,982.4 29.1% -0.4% (82.3) -0.5% (216.7) -1.4%
*Indicates company information is estimated.**Primerica provides quarterly sales activity information. ***Great-West Life includes Canada Life, Investors Group, London Life, and Mackenzie.
Assets Net flows
Apr2013 Share
Monthly chg. in assets
% ofbeg. assets
Apr2013
YTD2013
% ofbeg. assets
21
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Segregated Funds Monthly Update
17 Largest Mutual Fund Complexes Wrapped into Segregated Funds Ranked by April 2013 assets in millions of dollars
Assets
Apr2013 Share
Monthly chg. in assets
YTD2013
% ofbeg. assets
Net flows
Apr2013
% ofbeg. assets
COMPLEXES Mutual funds wrapped by segregated funds $54,835.0 100.0% -0.1% ($129.6) -0.2% ($337.2) -0.6% 1 CI Investments 15,104.3 27.5% -0.2% (81.6) -0.5% (353.8) -2.4%
2 Manulife Mutual Funds 11,948.4 21.8% 0.6% 41.5 0.3% 323.5 2.9%
3 Fidelity 9,412.8 17.2% -0.5% (99.6) -1.1% (455.0) -4.8%
4 Mackenzie 4,367.3 8.0% -1.5% (15.4) -0.3% (50.6) -1.2%
5 Franklin Templeton 2,355.4 4.3% 1.4% 17.9 0.8% 79.8 3.7%
6 IA Clarington 2,118.2 3.9% 1.2% 21.7 1.0% 128.9 6.8%
7 Standard Life 2,045.3 3.7% 1.0% 11.3 0.6% 72.6 3.9%
8 TD Asset Management 1,537.8 2.8% -1.0% (13.8) -0.9% (62.6) -4.0%
9 Investors Group 1,354.2 2.5% 0.3% 3.3 0.2% 19.5 1.5%
10 Invesco 1,015.3 1.9% -1.1% (7.3) -0.7% (25.5) -2.6%
11 RBC Global Asset Management 553.0 1.0% 1.5% 7.9 1.4% 24.6 4.8%
12 CIBC Asset Management 331.1 0.6% 0.8% 1.8 0.5% 0.9 0.3%
13 AGF Investments 214.7 0.4% -1.6% (0.8) -0.4% 0.3 0.2%
14 NEI Investments 205.5 0.4% -0.5% (1.3) -0.6% (2.8) -1.4%
15 AEGON 183.0 0.3% -1.4% (1.1) -0.6% (3.4) -1.9%
16 Pro-Financial 65.4 0.1% 2.8% 1.5 2.3% 6.4 11.4%
17 Desjardins Investments 65.1 0.1% 0.7% — — (2.1) -3.2%
18 Russell Investments Canada 43.4 0.1% 2.6% 0.9 2.1% 4.4 11.8%
19 BlackRock Canada 19.9 — 0.4% — — — 0.2%
20 Brandes 5.8 — — 0.1 1.0% 0.2 4.6%
Top 20 52,946.0 96.6% — (113.4) -0.2% (294.6) -0.6%
Insurance Advisory Service | May 2013
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18 Best-selling Mutual Fund Complexes Wrapped into Segregated Funds Ranked by April 2013 net flows in millions of dollars
Assets
Apr2013 Share
Monthly chg. in assets
YTD2013
% ofbeg. assets
Net flows
Apr2013
% ofbeg. assets
COMPLEXES Mutual funds wrapped by segregated funds $54,835.0 100.0% -0.1% ($129.6) -0.2% ($337.2) -0.6% 1 Manulife Mutual Funds 11,948.4 21.8% 0.6% 41.5 0.3% 323.5 2.9%
2 IA Clarington 2,118.2 3.9% 1.2% 21.7 1.0% 128.9 6.8%
3 Franklin Templeton 2,355.4 4.3% 1.4% 17.9 0.8% 79.8 3.7%
4 Standard Life 2,045.3 3.7% 1.0% 11.3 0.6% 72.6 3.9%
5 RBC Global Asset Management 553.0 1.0% 1.5% 7.9 1.4% 24.6 4.8%
6 Investors Group 1,354.2 2.5% 0.3% 3.3 0.2% 19.5 1.5%
7 CIBC Asset Management 331.1 0.6% 0.8% 1.8 0.5% 0.9 0.3%
8 Pro-Financial 65.4 0.1% 2.8% 1.5 2.3% 6.4 11.4%
9 Russell Investments Canada 43.4 0.1% 2.6% 0.9 2.1% 4.4 11.8%
10 National Bank 2.5 — 5.7% 0.1 2.8% 0.3 14.8%
11 Brandes 5.8 — — 0.1 1.0% 0.2 4.6%
12 BlackRock Canada 19.9 — 0.4% — — — 0.2%
13 Desjardins Investments 65.1 0.1% 0.7% — — (2.1) -3.2%
14 OceanRock Investments 2.4 — -2.8% (0.1) -2.9% 0.5 31.6%
15 AGF Investments 214.7 0.4% -1.6% (0.8) 0.3% 0.3 0.2%
16 AEGON 183.0 0.3% -1.4% (1.1) -0.6% (3.4) -1.9%
17 NEI Investments 205.5 0.4% -0.5% (1.3) -0.6% (2.8) -1.4%
18 Invesco 1,015.3 1.9% -1.1% (7.3) -0.7% (25.5) -2.6%
19 TD Asset Management 1,537.8 2.8% -1.0% (13.8) -0.9% (62.6) -4.0%
20 Mackenzie 4,367.3 8.0% -1.5% (15.4) -0.2% (50.6) -1.2% Top 20 28,433.8 51.9% 0.2% 67.9 0.2% 515.1 1.9%
23
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Segregated Funds Monthly Update
19 Largest Segregated Fund Complexes Wrapping Mutual Funds—Third Party Rank Share Ranked by April 2013 assets in millions of dollars
Assets Third-party fund share
Apr2013
1-yrgrowth
Apr2013 1-yr 3-yr
Segregated funds wrapping mutual funds $54,835.0 5.4% 59.1% 62.4% -3.2% -4.9% 1 Manulife Investments 24,260.4 5.2% 50.9% 55.4% -4.5% -6.8%
2 Sun Life 12,284.4 1.6% 100.0% 100.0% — —
3 Great-West Life 6,516.6 7.0% 23.7% 23.2% 0.5% -6.4%
4 Industrial Alliance 3,215.6 16.4% 34.1% 41.8% -7.7% -18.1%
5 Standard Life 2,551.5 22.6% 19.8% 17.8% 2.0% 16.3%
6 Desjardins Financial Security 2,539.5 2.4% 89.6% 90.0% -0.5% -1.1%
7 Transamerica Life Canada* 1,126.1 -10.8% 83.7% 89.0% -5.3% -8.0%
8 Equitable Life 677.0 11.7% 100.0% 100.0% — —
9 SSQ Vie 427.9 25.8% 100.0% 100.0% — —
10 RBC Insurance 390.8 29.4% 3.2% 3.0% 0.2% 1.0%
Top 10 53,989.9 5.7%
*Indicates company information is estimated.
Change in shareApr
2012
Insurance Advisory Service | May 2013
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20 Segregated Funds Wrapping Mutual Funds—Cross-tab Between Largest Segregated Fund Sponsors and Mutual Fund Providers In millions of dollars
Assets $54,835.0 $15,104.3 $11,948.4 $9,412.8 $4,367.3 $2,355.4 78.8% 1 Manulife Investments 24,260.4 3,113.6 11,916.2 5,746.9 610.0 23.2 88.3%
2 Sun Life 12,284.4 10,714.0 11.9 737.5 122.7 114.5 95.2%
3 Great-West Life 6,516.6 371.0 4.7 543.3 3,615.3 337.2 74.8%
4 Industrial Alliance 3,215.6 — — 903.3 7.9 36.3 29.5%
5 Standard Life 2,551.5 — — 265.9 — 142.0 16.0%
Top 5 share 48,828.5 29.1% 24.4% 16.8% 8.9% 1.3%
6 Desjardins Financial Security 2,539.5 105.0 — 864.4 — 1,200.3 85.4%
7 Transamerica Life Canada* 1,126.1 462.4 — 177.1 — 72.7 63.2%
8 Equitable Life 677.0 — — — 11.4 404.4 61.4%
9 SSQ Vie 427.9 — — 42.1 — — 9.8%
10 RBC Insurance 390.8 — — — — — —
Next 5 share 5,161.4 11.0% — 21.0% 0.2% 32.5%
Largest Mutual Fund Providers on Segregated Fund Platform
Apr2013
CI Investments
Manulife Mutual Funds Fidelity Mackenzie
FranklinTempleton
Top 5 share of sponsor
assets
*Indicates company information is estimated.
25
Mo
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Segregated Funds Monthly Update
21 Segregated Funds Wrapping Mutual Funds—Cross-tab Between Best-selling Segregated Fund Sponsors and Mutual Fund Providers In millions of dollars
Gross sales $291.2 $59.9 $38.8 $33.0 $30.7 $30.7 66.3% 1 Manulife Investments 81.4 59.7 1.7 5.2 — — 81.9%
2 Great-West Life 67.5 0.1 36.8 1.8 — — 57.4%
3 Standard Life 38.0 — — — 30.7 — 80.9%
4 Industrial Alliance 36.8 — — — — 30.7 83.3%
5 Sun Life 27.0 — — 25.0 — — 92.4%
Top 5 share 86.1% 23.9% 64.4% 83.1% 96.0% 99.8%
6 Desjardins Financial Security 11.4 — — 0.9 — — 8.0%
7 RBC Insurance 14.5 — — — — — —
8 Equitable Life 8.6 — 0.2 — — — 1.9%
9 SSQ Vie 5.8 — — — — — —
Top 9 share 100.0% — — 2.3% — —
Gross sales $1,419.1 $307.9 $196.1 $157.6 $144.6 $141.1 66.8% 1 Manulife Investments 422.9 307.2 9.6 24.4 — — 80.7%
2 Great-West Life 323.3 0.5 185.0 9.4 — — 60.3%
3 Standard Life 180.6 — — — 144.6 — 80.1%
4 Industrial Alliance 172.4 — 0.3 — — 141.1 82.0%
5 Sun Life 124.1 — 0.1 114.2 — — 92.1%
Top 5 share 86.2% 25.2% 63.4% 75.9% 97.7% 97.6%
6 Desjardins Financial Security 51.8 — — 4.8 — — 9.3%
7 RBC Insurance 48.4 — — — — — —
8 Equitable Life 41.9 — 1.1 — — — 2.7%
9 SSQ Vie 35.3 — — — — — —
10 Transamerica Life Canada* 18.0 — — 4.5 — — 24.8%
Top 10 share 100.0% — 0.6% 4.7% — —
Best-Selling Mutual Fund Providers on Segregated Fund Platform
Apr2013
CIInvestments
IAClaringtonMackenzie
StandardLife
Top 5 share of sponsor gross sales
Best-Selling Mutual Fund Providers on Segregated Fund Platform
YTD2013
CI Investments
IAClaringtonMackenzie
StandardLife
Top 5 share of sponsor gross sales
Manulife Mutual Funds
Manulife Mutual Funds
*Indicates company information is estimated.
355 King St. West, 5th Floor, Toronto, ON M5V 1J6 P: 416-341-0114 F: 416-341-0115 E: [email protected]