Portfolio Review First Quarter 2013

Transamerica CI Canadian Balanced Portfolio

Portfolio Review – First Quarter 2013 as at March 31, 2013Transamerica CI Canadian Balanced Portfolio

Underlying Fund Allocations

AEGON Capital Management Canadian Bond Pool 27.6%Signature Canadian Bond Fund 11.3%Signature High Income Fund 8.8%Cambridge Canadian Equity Corporate Class 8.5%Synergy Canadian Corporate Class 7.0%CI Canadian Investment Corporate Class 7.0%Harbour Corporate Class 6.7%Signature Select Canadian Corporate Class 5.9%CI American Value Corporate Class 5.1%Cambridge Income Corporate Class 4.9%Cambridge Global Equity Corporate Class 4.2%CI International Value Corporate Class 2.0%Cash 1.0%

Top Ten Holdings

Canada Govt 4% 01Jun41 2.5%Canada Govt 2.75% 01Jun22 1.8%The Toronto-Dominion Bank 1.1%Suncor Energy Inc. 1.0%Bank of Nova Scotia 0.9%Canadian Imperial Bank of Commerce 0.9%Canadian National Railway Company 0.9%CIBC 9.976% FRN 30Jun2108 0.9%Energy Solutions 4.6% 03Feb20 0.8%Royal Bank of Canada 0.8%

Portfolio Managers’ Economic Overview

Income investors in the first quarter of 2013 favoured high-yield corporate bonds, where yields declined amid robust issuance and strong demand. Although data showed signs of economic improvement, the U.S. Federal Reserve reiterated its commitment to its quantitative easing strategy until the country’s unemployment rate declines to 6.5%. The Bank of Canada also kept rates on hold, based on tepid economic expansion and weaker housing prices. Canadian income trusts and real estate investment trusts were modestly positive for the period.

Canadian stocks as reflected by the S&P/TSX Composite Index added 3.3% in the quarter, with health care, industrials and consumer discretionary sectors making the strongest gains. The overall advance was dampened, however, by negative results for the materials sector, as weaker commodity prices and sluggish global economic growth dragged down share prices. Meanwhile, U.S. stocks as measured by the S&P 500 Index reached a record high in the quarter, gaining 13.2% in Canadian dollar terms. U.S stocks were buoyed by better-than-expected earnings reports and stronger economic data, including firm job growth, a recovery in housing and higher GDP. Defensive sectors, such as health care, consumer staples and utilities, led the rise. Cyclical sectors including technology and materials lagged.

Overseas equity markets posted mainly positive returns in the quarter. In Europe, gains were moderate. The €10 billion bailout of the Cypriot banking system penalized bond and large deposit holders, shook markets and dampened returns for financial stocks across the region. Markets in South Korea and Singapore were also positive, but results were negative in China and Hong Kong as investors remained wary of weaker growth in the region and the impact of expected economic reforms in China. Japan had the strongest global stock market returns, benefiting from strong monetary and fiscal stimulus aimed at raising inflation and weakening the yen to boost exports.

Portfolio Review – First Quarter 2013 as at March 31, 2013Transamerica CI Canadian Balanced Portfolio

0 10 20 30 40 50 60

59.5%21.1%10.7%2.2%1.5%1.2%1.2%1.1%0.8%0.7%

59,5 %21,1 %10,7 %2,2 %1,5 %1,2 %1,2 %1,1 %0,8 %0,7 %

— Canada ▼— U.S. ▼— Cash & Others ▲ — U.K. ▲— Japan ▲— Emerging markets ▲— Germany ▲— Switzerland ■— Australia ▼— Bermuda ■

— Canada ▼ — États-Unis ▼— Trésorerie et autres ▲— Royaume-Uni ▲— Japon ▲— Marchés émergents ▲— Allemagne ▲— Suisse ■— Australie ▼— Bermudes ■

▲ ▼ ■

Geographic Regions

0 5 10 15 20 25

24.5%18.0%10.9%9.1%9.1%8.3%8.0%7.1%2.5%2.3%0.2%

24,5 %18,0 %10,9 %9,1 %9,1 %8,3 %8,0 %7,1 %2,5 %2,3 %0,2 %

— Financial services ▼— Energy ▲— Industrials ▲— Consumer staples ▲— Information technology ▼— Consumer discretionary ▼— Materials ▼— Health care ▼— Utilities ▼— Telecommunications ▼— Other ▼

— Services financiers ▼ — Énergie ▲— Industries ▲— Biens de consommation de base ▲— Technologies de l’information ▼— Biens de consommation discrétionnaire ▼— Matières premières ▼— Soins de santé ▼— Services publics ▼— Télécommunications ▼— Autres ▼

▲ ▼ ■

Equity Industry Sector

0 5 10 15 20 25 30 35 40

36.6%22.9%17.4%7.5%6.1%5.5%2.6%0.8%0.6%

36,6 %22,9 %17,4 %7,5 %6,1 %5,5 %2,6 %0,8 %0,6 %

— Canadian bond ▼— Canadian equity ▼— U.S. equity ▼— Cash ▲ — Foreign bond ▲— European equity ▲— Asian equity ▲— Other equity ■— Emerging markets equity ▼

— Obligations canadiennes ▼— Actions canadiennes ▼ — Actions américaines ▼— Trésorerie ▲— Obligations étrangères ▲— Actions européennes ▲— Actions asiatiques ▲— Autres actions ■— Actions de marchés émergents ▼

▲ ▼ ■

Asset Class

0 10 20 30 40 50 60 70 80

79.7%16.8%

3.5%

79,7 %16,8 %

3,5 %

— Large cap ▲— Mid-cap ▼— Small cap ▼

— Grande capitalisation ▲ — Moyenne capitalisation ▼— Petite capitalisation ▼

▲ ▼ ■

Equity Market Cap

Asset Allocation Overview and ActivityDifferent types of investments will respond differently to the markets, reinforcing the importance of a multi-level diversification strategy. A balanced asset mix ensures that investors are not dependent on any one asset class or security type to provide returns.

This report is designed to provide you with an up-to-date portfolio overview of the Transamerica CI Canadian Balanced Portfolio, including the allocations across asset class, geographic region, equity sector and market capitalization. The arrows indicate whether the allocation for each category has increased or decreased since the previous quarter-end.

3 Months 6 Months 1 Year 3 Years Since Inception Inception Date†

4.8% 6.8% 7.6% 5.7% 6.3% October 2009

Portfolio Performance Transamerica CI Portfolios are available as Guaranteed Investment Portfolios within select Transamerica segregated funds contracts and as Managed Portfolio Index Interest Options within select Transamerica Universal Life Products.

Segregated Fund Net Returns below are for the Transamerica Guaranteed Investment Funds (TGIF) product. Please refer to www.transamerica.ca for the returns on other products.

†On September 21, 2012, the Transamerica TOP GIPs began investing in a new portfolio managed by CI Investments. The Transamerica TOP GIPs are now referred to as Transamerica CI GIPs.

Portfolio Review – First Quarter 2013 as at March 31, 2013Transamerica CI Canadian Balanced Portfolio

Portfolio CommentaryThe portfolio gained 4.8% during the quarter, significantly outperforming its benchmark (30% S&P/TSX Composite Index, 50% DEX Universe Bond Index, 20% MSCI World Index, C$), which rose 3.4%.

Strong performance from the Canadian equity managers contributed the most to outperformance. Underweight exposure to government bonds and an emphasis on income-oriented equities also added value.

During the quarter, government bonds had modest gains due to their low yields, while bonds with longer maturities incurred small losses. Meantime, high-yield and investment-grade corporate bonds continued to perform well, benefiting from capital appreciation and higher coupons. U.S. equities continued to strengthen, handily outperforming Canadian stocks, which were held back by weakness in the resource sectors. International equity markets were boosted by strength in Japan, Australia and some European countries, notably Switzerland. Emerging markets delivered limited gains, in contrast to a strong 2012. The U.S. dollar gained against the Canadian dollar, due to improving economic fundamentals south of the border.

In the portfolio’s income portion, Signature High Income Fund and Cambridge Income Corporate Class were the top contributors, benefiting from their high-yield bond position and dividend-paying equities. Signature Canadian Bond Fund contributed the least, due to its exposure to government bonds.

The portfolio’s interest rate risk is reduced through exposure to corporate bonds with shorter durations and higher yields, as well as to alternative sources of income such as high-yielding equities that have lower sensitivity to interest rate movements.

A large portion of the portfolio’s foreign currency exposure is strategically hedged back to the Canadian dollar, dampening volatility from currency movements. However, depending

on the level of exchange rates, we will adjust the portfolio’s exposure to foreign currencies to benefit from changing market conditions.

We are continuing to favour corporate bonds, global bonds and currencies, while maintaining underweight allocations to Canadian government bonds. Having a diversified and flexible framework allows us to take advantage of changes in valuations in the market and continue providing steady income returns with low volatility. We expect to achieve modest growth and inflation protection through our allocation to high-quality dividend-paying equities.

In the equity section, Canadian equity funds made the biggest contribution to performance, led by Cambridge Canadian Equity Corporate Class. Outperformance was driven by underweight positions in energy and materials and strong stock selection within those sectors.

The sector allocation of the portfolio’s overall equity portion is more diversified than that of the Canadian economy and the S&P/TSX Composite Index, which has over 75% of its value concentrated in three sectors: energy, materials and financials. We continue to focus on company fundamentals and valuations to add value and avoid undue concentration in any one sector.

Alfred Lam, CFA, Vice-President and Portfolio Manager

Yoonjai Shin, CFA, Director

Marchello Holditch, Senior Analyst

Lewis Harkes, CFA, Senior Analyst

Andrew Ashworth, Analyst

Portfolio Review – First Quarter 2013 as at March 31, 2013

Aegon Capital Management (ACM) oversees more than $8 billion in institutional, third party and asset liability matching investments. ACM is backed by the strength of Aegon Asset Management which manages more than US$300 billion in assets. ACM’s focus is to provide exceptional income and capital preservation solutions for our clients.

Altrinsic Global Advisors, LLC follows a fundamental value approach in which the team seeks out high-quality undervalued companies worldwide. Founded by John Hock and associates, Altrinsic is based in Greenwich, Connecticut, and manages over US$13 billion in assets.

Cambridge Global Asset Management manages over $6 billion in assets and is led by Chief Investment Officer Alan Radlo and Portfolio Managers Robert Swanson and Brandon Snow. Combined, they have over 65 years of investment experience and have managed a number of multi-billion-dollar mutual fund portfolios. Cambridge Global Asset Management is a division of CI Investments and has offices in Boston and Toronto.

Epoch Investment Partners, Inc. is a New York-based investment management firm founded by Wall Street veteran William Priest and associates. Epoch uses a unique value-based approach that focuses on companies with superior shareholder yield. It manages over US$24 billion.

Harbour Advisors, a division of CI Investments, is led by Portfolio Managers Gerry Coleman and Stephen Jenkins. Harbour’s approach entails buying high-quality businesses at a sensible price, and following a patient, long-term outlook. Mr. Coleman’s expertise has been recognized by his selection as Fund Manager of the Year in 2008 and 2001. Harbour manages over $13 billion.

Signature Global Advisors’ advantage is its approach in which asset class and sector specialists combine their research to develop a comprehensive picture of a company and its securities. The team of 32 investment professionals is led by Chief Investment Officer Eric Bushell, who was named Morningstar Fund Manager of the Decade in 2010. Signature manages over $40 billion.

Picton Mahoney Asset Management is a portfolio management firm led by David Picton and Michael Mahoney. The use of quantitative analysis is the foundation of their approach. Picton Mahoney maintains a disciplined focus on fundamental change, coupled with strong risk controls and portfolio construction techniques. The firm manages about $7 billion.

Tetrem Capital Management is an employee-owned investment management firm founded by Chief Investment Officer Daniel Bubis. It is based in Winnipeg and has an office in Boston. Tetrem uses a disciplined investment approach to invest in undervalued Canadian and U.S. companies. The firm manages about $5 billion.

Portfolio Management Teams

Transamerica CI Portfolios

The Transmerica CI Portfolios are managed by CI Investments Inc. on behalf of Transamerica Life Canada.

Strength and experience

Transamerica Life Canada is a leading life insurance company

in Canada. Through a number of distribution channels, resulting

in a national network of thousands of independent advisors,

Transamerica provides a full spectrum of individual life insurance

and protection products, designed to help Canadians take

responsibility for their financial future. Transamerica Life Canada

is an Aegon company.

Aegon Capital Management (ACM) oversees more than $8 billion

in institutional, third party and asset liability matching investments.

ACM is backed by the strength of Aegon Asset Management which

manages more than US$300 billion in assets. ACM’s focus is to

provide exceptional income and capital preservation solutions for

its clients.

CI Investments has been managing money for over four decades

and today is one of Canada’s largest investment fund companies.

CI manages approximately $80 billion on behalf of two million

Canadian investors. CI provides the industry’s widest selection

of investment funds and leading portfolio managers on a variety

of platforms, including mutual and segregated funds, managed

solutions and alternative investments.

CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent,

Canadian-owned wealth management firm with approximately

$105 billion in assets as at March 31, 2013.

1304-0623_E (04/13)

For more information on Transamerica CI Portfolios, please contact your advisor or visit www.transamericaciportfolios.com.

All commentaries are published by CI Investments Inc., CI Investments Inc. is the Manager of all the funds described herein, other than Aegon Capital Management Canadian Bond Pool which is managed by Aegon Capital Management. The commentaries are provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CI Investments Inc. cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.

SUBJECT TO ANY APPLICABLE DEATH AND MATURITY GUARANTEE, ANY PART OF THE PREMIUM OR OTHER AMOUNT THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE RISK OF THE CONTRACT HOLDERS AND MAY INCREASE OR DECREASE IN VALUE ACCORDING TO FLUCTUATIONS IN THE MARKET VALUE OF THE ASSETS OF THE SEGREGATED FUND. If you wish to obtain a copy of the simplified prospectus and/or financial statements of any of the underlying funds, please contact the appropriate mutual fund company. Transamerica Life Canada is the issuer and guarantor of the Transamerica CI Guaranteed Investment Portfolio contract.

®CI Investments, the CI Investments design, Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Cambridge and American Managers are registered trademarks of CI Investments Inc. ™Signature Funds and Signature Global Advisors are trademarks of CI Investments Inc. Cambridge Global Asset Management is the business name of CI Global Invesments Inc. Certain portfolio managers of Cambridge Global Asset Management are registered with CI Investments Inc.

®Aegon and the Aegon logo are registered trademarks of Aegon N.V. Aegon Canada ULC and its subsidiary companies are licensed to use such marks.

®Transamerica and the pyramid design are registered trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use such marks. First published January 2013.

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