Fund overview & performance

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Canada Life Segregated Funds

Canada Life Canadian Fundamental Equity Fund

Fund profile and commentary

Fund fact

February 28, 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 December 31, 2024)

Asset allocation (%)

	Name	Percent
	Canadian Equity	97.3
	Income Trust Units	1.5
	International Equity	0.5
	US Equity	0.4
	Cash and Equivalents	0.3

Geographic allocation (%)

	Name	Percent
	Canada	98.4
	Bermuda	0.7
	Australia	0.5
	United States	0.4

Sector allocation (%)

	Name	Percent
	Financial Services	33.8
	Energy	14.7
	Technology	12.5
	Basic Materials	11.4
	Industrial Services	9.2
	Consumer Services	5.0
	Utilities	3.7
	Real Estate	3.6
	Industrial Goods	2.3
	Other	3.8

Growth of $10,000 (since inception)

Data not available based on date of inception

Fund details (as of December 31, 2024)

Top holdings	%
Royal Bank of Canada	6.9
Shopify Inc Cl A	5.2
Constellation Software Inc	3.3
Canadian Imperial Bank of Commerce	3.1
Toronto-Dominion Bank	3.1
Manulife Financial Corp	3.0
Agnico Eagle Mines Ltd	3.0
Brookfield Corp Cl A	2.9
Canadian Natural Resources Ltd	2.9
TC Energy Corp	2.7
Total allocation in top holdings	36.1

Portfolio characteristics
Standard deviation	11.7%
Dividend yield	2.1%
Average market cap (million)	$75,014.6

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 - February 28, 2025)

Best return	Best period end date	Worst return	Worst period end date
11.0%	Feb. 2025	6.1%	Oct. 2023

Average return	% of periods with positive returns	Number of positive periods	Number of negative periods
8.6%	100.0%	17	0

Q4 2024 Fund Commentary

Market commentary

The Canadian equity market performed well over the quarter, reaching an all-time high in December. Despite the potential for increased tariffs on Canadian imports to the U.S., Canadian equities benefited from post-U.S. election optimism as investors anticipated more business-friendly policies. Near the end of the quarter, however, the U.S. Federal Reserve Board announced fewer-than-expected interest-rate cuts were likely in 2025, and equity markets declined.

Performance

The Fund’s overweight exposure to MDA Ltd. and Celestica Inc. had a positive impact on performance. Underweight exposure to Shopify Inc. had a negative impact on performance.

MDA Ltd. posted strong quarterly financial results, and its stock rose by 69.9%, outperforming the broader industrials sector. Shares of Celestica Inc., a technology company focused on electronic product manufacturing and hardware design, gained 92.7% over the quarter. Gains were driven by the company’s rapid adoption of generative artificial intelligence.

Shopify Inc.’s stock increased by 41.1% because of strong earnings, significantly outperforming the broader information technology sector.

At the sector level, stock selection in utilities and industrials had a positive impact on performance. Underweight exposure to communication services and overweight exposure to information technology was also positive. Stock selection in the financials sector and overweight exposure to industrials had a negative impact.

The sub-advisor added TransAlta Corp. to the Fund. The sub-advisor expects the Alberta-based energy company to benefit from the province’s investments in data-centre infrastructure.

The sub-advisor increased Brookfield Corp. The company’s alternative investments should benefit from lower interest rates. The sub-advisor has a positive view of the company’s management team.

The sub-advisor decreased RB Global Inc., a defensive industrial company, in order to increase holdings in high-quality cyclical stocks in anticipation of an improving economy. (Cyclical stocks are generally more sensitive than defensive stocks to changes in the economy.)

At the sector level, the sub-advisor increased exposure to utilities and industrials companies with the potential to benefit from AI-related capital expenditures.

Outlook

The sub-advisor expects above-trend growth for the U.S. economy in 2025. The U.S. services sector makes up 85% of the economy and should see continued strong expansion. Lower interest rates are expected to support manufacturing activity. The sub-advisor believes Canada is likely to benefit from the strength of the U.S. economy.

The sub-advisor expects Canada’s rate-sensitive economy to experience low but positive growth as a result of the Bank of Canada’s aggressive interest-rate cuts. However, potential tariffs on imports to the U.S. are a large source of uncertainty, in the sub-advisor’s view. Investor expectations are high, with consensus views pointing to strong earnings growth and no recession. Developments that disrupt these expectations could lead to increased volatility.

As recession risk declined, the sub-advisor added higher-quality cyclical stocks and reduced lower-growth, rate-sensitive companies. The Fund maintains significant exposure to companies capable of delivering above-average earnings growth regardless of economic conditions. At the end of the quarter, the Fund’s portfolio was better balanced between quality cyclical stocks and resilient growth companies.

(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 Dec. 31, 2024.

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 Dec. 31, 2024. 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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