Fund overview & performance

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Canada Life Segregated Funds

Canada Life Canadian Fundamental Equity Fund

Fund profile and commentary

Fund fact

April 30, 2025

The Fund seeks to provide long-term capital appreciation by investment primarily in Canadian equity securities.

Is this fund right for you?

You want your money to grow over the longer term.
You want to invest mainly in Canadian companies.
You're comfortable with a medium level of risk.

Risk Rating

How is the fund invested? (as of February 28, 2025)

Asset allocation (%)

	Name	Percent
	Canadian Equity	98.3
	Income Trust Units	1.3
	US Equity	0.2
	Cash and Equivalents	0.1
	Other	0.1

Geographic allocation (%)

	Name	Percent
	Canada	99.3
	Bermuda	0.5
	United States	0.2

Sector allocation (%)

	Name	Percent
	Financial Services	34.2
	Energy	14.3
	Technology	12.8
	Basic Materials	11.9
	Industrial Services	9.8
	Consumer Services	5.5
	Real Estate	4.0
	Utilities	3.0
	Industrial Goods	2.0
	Other	2.5

Growth of $10,000 (since inception)

Data not available based on date of inception

Fund details (as of February 28, 2025)

Top holdings	%
Royal Bank of Canada	7.0
Shopify Inc Cl A	5.6
Toronto-Dominion Bank	4.7
Constellation Software Inc	3.8
Agnico Eagle Mines Ltd	3.7
Manulife Financial Corp	3.0
TC Energy Corp	3.0
Canadian Pacific Kansas City Ltd	3.0
Brookfield Corp Cl A	2.9
Enbridge Inc	2.8
Total allocation in top holdings	39.5

Portfolio characteristics
Standard deviation	11.3%
Dividend yield	2.2%
Average market cap (million)	$82,322.6

Understanding returns

Annual compound returns (%)

1 MO	3 MO	YTD	1 YR
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3 YR	5 YR	10 YR	INCEPTION
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Calendar year returns (%)

2024	2023	2022	2021
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2020	2019	2018	2017
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Range of returns over five years (November 1, 2018 - April 30, 2025)

Best return	Best period end date	Worst return	Worst period end date
16.3%	March 2025	6.1%	Oct. 2023

Average return	% of periods with positive returns	Number of positive periods	Number of negative periods
9.2%	100.0%	19	0

Q1 2025 Fund Commentary

Market commentary

During the first quarter of 2025, equity markets fell due to tariff uncertainty and slowing economic activity in the U.S. and Canada. Escalating U.S.–Canada trade tensions raised recession concerns, leading to increased volatility in equity markets. Despite the reduction in mortgage rates, Canadian housing activity slowed, suggesting a weaker economic backdrop.

Canadian equity markets outperformed their U.S. counterparts, reflecting lower starting valuations, higher exposure to gold, and lower information technology exposure. Defensive sectors outperformed cyclical sectors, with gold equities the top-performing sector.

Investor sentiment responded to the launch of DeepSeek, a Chinese artificial intelligence (AI) model developed at a lower cost than U.S.-built models. This cost efficiency raised uncertainty regarding investments in information technology stocks, leading the sector to underperform.

Performance

The Fund’s relative exposure to Agnico Eagle Mines Ltd. had the most positive impact on performance. Tariff concerns and rising inflation expectations led to a rise in gold prices, which benefited the company’s performance.

Relative exposure to Capital Power Corp. and TransAlta Corp. was negative for performance. The companies were affected by the launch of DeepSeek, which showed efficiency improvements in building AI models. This launch led to short-term uncertainty about the future demand for data centres and electricity required for AI.

At the sector level, stock selection in information technology and health care had the most positive impact on performance. Underweight exposure to real estate also had a positive impact on performance. Security selection in utilities and energy had a negative impact on performance. Underweight exposure to materials also had a negative effect on performance.

Portfolio activity

The sub-advisor added Franco-Nevada Corp. based on rising gold prices in an environment of increased tariff concerns. Waste Connections Inc. was increased because the sub-advisor believes the company should be able to manage inflationary pressures to see double-digit earnings growth. Air Canada was sold because of its cyclical nature in an uncertain economic environment and rising fuel prices. The Bank of Nova Scotia was trimmed because of tariff uncertainty and rising risk of recession.

Outlook

The economic environment is uncertain because of U.S. tariffs, geopolitical tensions and rising recession risks. If high U.S. tariffs stay in place for an extended period, without negotiations bringing them lower, U.S. recession risk may rise. The sub-advisor is concerned about the potential for U.S. and Canadian inflation to rise.

U.S. equity market performance should depend on corporate earnings strength, fiscal and trade policy developments, and incoming economic data. Economic indicators are mixed, with weak consumer sentiment, capital expenditures, manufacturing orders and housing data. However, the labour market is positive and consumer spending has shown resilience. Should the U.S. economy stabilize and trade tensions ease, there is potential for positive equity performance.

The sub-advisor expects market volatility to remain elevated. The sub-advisor has reduced the Fund’s cyclical exposures, including banks and oil producers, and increased exposures to grocers, traditional utilities and gold.

(September 30, 2024)

Connor, Clark & Lunn Investment Management

NL — MAX2163

Contact information

Toll free: 1-844-730-1633

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Summary

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Total returns performance

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Legal disclaimers

The commentaries on the company specific information and purchases and sales were provided by the fund manager. Canada Life Investment Management Ltd. will not be liable for any loss, or damages whatsoever, whether directly or indirectly incurred, arising out of the use or misuse of errors or omissions in any information contained in this commentary. The data provided in this commentary is for information purposes only and, except where otherwise indicated, is current as of March 31, 2025.

The views expressed in this commentary are those of fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Prospective investors should review the offering documents relating to any investment carefully before making an investment decision and should ask their Advisor for advice based on their specific circumstances.

The content of this commentary (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This document may contain forward-looking information which reflect our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of March 31, 2025. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

There can be no assurance that the Fund’s return or volatility targets will be met, or met over any particular time horizon. Targeted returns and volatility should be evaluated over the time period indicated and not over shorter periods. Targeted returns are not actual performance and should not be relied upon as an indication of actual or future performance.

Canada Life Mutual Funds are managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd., IPC Investment Corporation and IPC Securities Corporation. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Canada Life Mutual Funds, Canada Life Investment Management and design, and Canada Life and design are trademarks of The Canada Life Assurance Company.

^Deferred Sales Charge (DSC) and Low Load Deferred Sales Charge (LSC) purchase options is closed to new investments given regulatory bans put in place for these purchase options that came into effect June 1, 2022.

^†Soft capped - Contributions are no longer accepted to new investors.

^‡Hard capped - Contributions are no longer accepted.

Distribution of the chart, history standard and short-term reports are not permitted without including the fund profile long-term report. For money market fund reports: The current yield is an annualized historical yield based on the seven-day period ended on the date noted above and does not represent an actual one-year return. Reports produced using this website are for information purposes only. Canada Life Investment Management Ltd., and their affiliates, representatives, and third party content providers do not warrant the accuracy, completeness, or timeliness of this website or any content, and shall not be responsible for investment decisions, damages, or other losses resulting from the use of this website or its content. The only true report on unit values is the periodic statement prepared and sent by the mutual fund company. Important information about Canada Life Mutual Funds is found in Fund Facts. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Money market fund units are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance of the funds may not be repeated. Canada Life Mutual Funds are managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd., IPC Investment Corporation and IPC Securities Corporation.

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