Investment Manager Review Process

Investors are faced with an ever-growing universe of investment options. In light of the difficulties associated with these choices, and in recognition of the importance of good governance, London Life follows a disciplined approach to maintaining high standards for its segregated funds.

These standards help ensure you:

• Can feel confident you have chosen a sound investment manager—one that will be monitored consistently to ensure he or she meets quality and regulatory standards
• Can feel confident the fund will be managed in accordance with its stated objectives and policies
• Continue to enjoy the benefits of having world-class investment talent effectively manage the funds in which you invest

Standards and expectations set for London Life’s investment managers

The investment committee analyzes factors including, but not limited to:

Qualitative factors

• Consistency of style and philosophy regarding the investment manager’s money management processes
• Organizational structures of the investment managers, especially regarding significant changes in the personnel or investment processes
• Duties, experience and tenure of personnel
• Investment manager’s views on recent market conditions and any actions taken as a result of his or her assessment
• Current economic outlook and positioning of portfolios
• Compliance and control procedures
• Significant changes in assets gained or lost, especially losses on institutional accounts

Quantitative factors

• Fund performance on absolute and relative basis, compared to competitors, peer groups and benchmarks
• The consistency, reliability and repeatability of performance
• How the investment manager generated returns, which helps separate skilled managers from lucky managers
• Volatility of the investment manager’s returns relative to a benchmark
• The fund’s actual returns and its expected performance, given its level of risk
• How much risk an investment manager had to bear to earn the returns on a particular fund
• How each investment manager fits into the overall offering of London Life’s Freedom Funds