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Financial Statements of
THE GREAT-WEST LIFE ASSURANCE COMPANY
INDIVIDUAL INVESTMENT FUNDS
December 31, 2015
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Deloitte LLP 360 Main Street Suite 2300 Winnipeg MB R3C 3Z3 Canada Tel: 204-942-0051 Fax: 204-947-9390 www.deloitte.ca
INDEPENDENT AUDITOR’S REPORT
To the Contractholders of The Great-West Life Assurance Company - Individual Investment Funds
We have audited the accompanying financial statements of The Great-West Life Assurance Company - Individual Investment Funds as listed in Note 1 to the financial statements, which comprise the statements of financial position as at December 31, 2015 and December 31, 2014, the statements of comprehensive income, statements of changes in net assets attributable to contractholders and the statements of cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of Part XII of the Canadian Life and Health Insurance Association Guideline G2, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of The Great-West Life Assurance Company - Individual Investment Funds as listed in Note 1 to the financial statements, as at December 31, 2015 and December 31, 2014, and the results of operations and cash flows for the years then ended in accordance with International Financial Reporting Standards and the requirements of Part XII of the Canadian Life and Health Insurance Association Guideline G2.
Chartered Accountants Winnipeg, Manitoba March 18, 2016
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Individual Investment FundsAmerican Growth Fund 8.05A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Bonds -
Stocks 111,148
Investment properties -
Mortgages and sales
agreements-
Investment fund units -
Cash and short-term deposits 1,632
Investment income due and accrued 33
Due to The Great-West Life Assurance Company (note 12) 53
Due to brokers -
Statement of Financial Position Statement of Comprehensive Income
December 31
-
89,898
-
-
-
2,796
6
-
-
December 31 December 31December 31
Net assets attributable to contractholders - beginning of year
Contractholder deposits 24,489 18,328
Statement of Changes in Net Assets Attributable
to Contractholders
Contractholder withdrawals (26,720) (24,037)
Increase (decrease) from
operations
Investments
Investment properties income - -
Expenses
Management fees (note 12) 1,570
Investment properties expenses -
Other 159
Total expenses 1,992 1,639
1,302
-
135
Net increase (decrease) in net assets
from operations attributable to
contractholders 22,467 11,996Total investments 111,148 89,898
Due to outside parties - -
Total liabilities excluding net
assets attributable to
contractholders 53-
Net assets attributable to
contractholders 113,038 92,802
86,51592,802
22,467 11,996
Change in net assets attributable to contractholders
20,236 6,287
Net assets attributable to
contractholders - end of year113,038 92,802
(in Canadian $ thousands)
- -Derivatives (note 11)
Mortgages on investment properties (note 6) - -
December 31 December 31
2015 2014 2015 2014
2015 2014
For the years ended
For the years ended
Assets
Due from The Great-West Life
Assurance Company (note 12) - 101
Due from brokers 278 -
Due from outside parties - 1
Total assets 113,091 92,802
Overdrafts - -
Derivatives (note 11) - -
Income
Net gain (loss) on investments 23,687 13,215
Miscellaneous income (loss) 772 420
Total Income 24,459 13,635
Transaction costs 85 46
Withholding taxes 178 156
Liabilities
-
American Growth Fund 8.05A
Managed By: AGF Investments Inc.(in Canadian $ thousands)
Statement of Cash Flows
For the years ended December 31
2015 2014
Net Inflow (Outflow) of Cash Related to the Following Activities
Operating Activities
Increase (decrease) in net assets from operations attributable to contractholders 22,467 11,996
Adjustments
Realized (gains) losses (22,862) (9,237)
Unrealized (gains) losses 243 (3,439)
Gross proceeds of disposition of investments 83,617 48,558
Gross payments for the purchase of investments (82,248) (41,641)
Change in investment income due and accrued (27) (4)
Change in due from/to The Great-West Life Assurance Company 154 (167)
Change in due from/to brokers (278) (210)
Change in due from/to outside parties 1 (1)
Change in mortgages on investment properties - -
1,067 5,855
Financing Activities
Contractholder deposits 24,489 18,328
Contractholder withdrawals (26,720) (24,037)
(2,231) (5,709)
Net increase (decrease) in cash, short-term deposits and overdrafts (1,164) 146
Cash, short-term deposits and overdrafts, beginning of year 2,796 2,650
Cash, short-term deposits and overdrafts, end of year 1,632 2,796
Supplementary cash flow information
Dividends received 1,027 724
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Individual Investment FundsAmerican Growth Fund 8.05A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Net Assets Attributable to Contractholders Per Unit (note 10)
Net Assets Attributable to Contractholders by Category
(in Canadian $ thousands, except per unit amounts)
The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years.
For the years ended December 31Number of units outstanding
2015 2014 2013 2012 2011
Investment Only
Individual No-Load (IA)
Individual Back-End Load (IB)
Managed Money (IC)
75/75 guarantee policy
75/100 guarantee policy
100/100 guarantee policy
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
PS2 75/75 guarantee policy
PS2 75/100 guarantee policy
PS2 100/100 guarantee policy
6,052 6,542 7,157 10,198 2,791
46,572 45,500 57,468 53,022 34,922
61,609 62,501 67,334 61,978 51,846
15,852 22,507 25,519 38,166 24,151
307,564 250,781 132,422 64,885 15,016
230,633 208,892 173,121 63,575 22,497
47,666 37,619 14,281 4,937 2,225
57,946 26,392 21,173 4,154 -
15,751 9,364 7,807 - -
43,246 37,450 36,037 12,076 -
2,276 448 1,117 - -
Net asset value per unit
2015 2014 2013 2012 2011
337.85 267.51 230.43 154.42 133.73
376.49 308.08 274.28 189.96 170.00
392.30 320.31 284.54 196.64 175.52
280.39 225.69 197.63 134.63 118.52
26.48 21.62 19.21 13.27 11.85
26.23 21.45 19.08 13.21 11.80
25.50 20.93 18.69 12.98 11.67
20.68 16.79 14.84 10.20 -
20.47 16.67 14.77 - -
20.19 16.50 14.68 - -
22.71 17.98 15.48 10.37 -
222,352
3,704
162,149
3,779
148,719
3,798
38,287
-
-
-
22.71
22.71
17.97
17.97
15.48
15.48
10.37
-
-
-
For the years ended December 31
Investment Only
Individual No-Load (IA)
Individual Back-End Load (IB)
Managed Money (IC)
100/100 guarantee policy
75/100 guarantee policy
75/75 guarantee policy
2,045 1,750
17,534 14,018
24,169 20,020
4,445 5,079
8,145 5,423
6,049 4,480
1,215 787
1,198 443
322 156
46 7
982 673
1,649
15,762
19,159
5,043
2,544
3,304
267
314
115
16
558
1,575
10,072
12,187
5,138
861
840
64
42
-
-
125
373
5,937
9,100
2,862
178
265
26
-
-
-
-
Net asset value
2015 2014 2013 2012 2011
5,049
84
2,914
68
2,302
59
397
-
-
-
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
PS2 75/75 guarantee policy
PS2 75/100 guarantee policy
PS2 100/100 guarantee policy
Increase (decrease) per unit
2015 2014
70.34 37.08
68.41 33.80
71.99 35.77
54.70 28.06
4.86 2.41
4.78 2.37
4.57 2.24
3.89 1.95
3.80 1.90
3.69 1.82
4.73 2.50
4.74
4.74
2.49
2.49
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(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
United States Common Stock
Consumer Discretionary
Amazon.com Inc. 5,998 1,715 5,609
Dollar General Corp. 37,762 3,671 3,755
Harman International Industries Inc. 8,328 1,318 1,085
Lennar Corp. Class A 58,712 3,341 3,973
Lowe's Companies Inc. 16,368 1,675 1,722
Ulta Salon Cosmetics & Fragrance Inc. 12,110 2,505 3,100
Consumer Staples
Costco Wholesale Corp. 13,369 2,782 2,987
Energy
Newfield Exploration Co. 64,107 2,951 2,888
Financials
American Tower Corp. Class A 25,288 3,025 3,392
Ameriprise Financial Inc. 7,258 567 1,069
Morgan Stanley 79,012 3,848 3,477
Primerica Inc. 35,640 1,198 2,329
Raymond James Financial Inc. 35,476 2,797 2,845
T. Rowe Price Group Inc. 11,193 883 1,107
The Charles Schwab Corp. 90,713 3,951 4,133
Health Care
Edwards Lifesciences Corp. 15,282 1,673 1,670
Illumina Inc. 9,665 1,162 2,567
Laboratory Corp. of America Holdings 16,655 2,633 2,849
Regeneron Pharmaceuticals Inc. 3,706 1,570 2,783
Industrials
Fortune Brands Home & Security Inc. 21,829 1,632 1,676
Robert Half International Inc. 21,468 908 1,400
The Boeing Co. 22,729 2,009 4,547
American Growth Fund 8.05A
Managed By: AGF Investments Inc.
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(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
American Growth Fund 8.05A
Managed By: AGF Investments Inc.
United States Common Stock (continued)
Information Technology
Adobe Systems Inc. 21,836 2,634 2,838
Alliance Data Systems Corp. 10,696 2,710 4,093
Cognizant Technology Solutions Corp. 41,180 2,943 3,420
Corning Inc. 96,034 1,838 2,429
Equinix Inc. Real Estate Investment Trust 7,377 2,692 3,086
Facebook Inc. 40,530 2,821 5,869
MasterCard Inc. Class A 31,935 3,611 4,302
Palo Alto Networks Inc. 4,421 1,135 1,077
Red Hat Inc. 39,307 2,827 4,503
Salesforce.com Inc. 40,797 2,322 4,425
ServiceNow Inc. 10,472 1,069 1,254
Materials
Vulcan Materials Co. 15,735 2,171 2,067
Telecommunication Services
T-Mobile US Inc. 69,612 3,020 3,768
Total United States Common Stock 79,607 104,094
Global Common Stock
Bermuda
Norwegian Cruise Line Holdings Ltd. 44,541 2,845 3,610
Ireland
Allergan PLC 7,966 1,455 3,444
Total Global Common Stock 4,300 7,054
Total Stocks 83,907 111,148
Total Investments 83,907 111,148
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AMERICAN GROWTH FUND 8.05A MANAGED BY: AGF INVESTMENTS INC. NOTES TO THE SCHEDULE OF INVESTMENT PORTFOLIO
(in Canadian $ thousands) As at December 31, 2015
Introduction The Fund's objective in managing risk is the creation and protection of contractholder value. Risk is inherent in the Fund's activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Fund's continuing profitability. The Fund can be exposed to liquidity risk, market risk (which includes currency risk, interest rate risk and other price risk) and credit risk arising from the financial instruments it holds.
A. Risk Management The Fund’s investment activities expose it to a variety of financial risks. The Schedule of Investment Portfolio presents the securities held by the Fund as at December 31, 2015, and groups the securities by asset type, geographic region and/or market segment. The following sections describe the significant risks that are relevant to the Fund. To assist with managing risk, The Great-West Life Assurance Company (the Company) maintains a governance structure that oversees the Fund's investment activities and monitors compliance with the Fund's stated investment strategy and other regulations.
B. Liquidity Risk Liquidity risk arises when a Fund encounters difficulty in meeting its financial obligations as they come due. The Fund is exposed to liquidity risk due to potential daily cash redemptions of redeemable units. The Fund retains sufficient cash and cash equivalent positions to maintain adequate liquidity to meet the obligation to fund daily cash redemptions of their redeemable units. Some securities are illiquid due to legal restrictions on their resale, the nature of the investment, or simply a lack of interested buyers for a particular security or security type. Certain securities may become less liquid due to changes in market conditions, such as interest rate changes or market volatility, which could impair the ability of a Fund to sell such securities quickly. In accordance with the Fund's policy, the Company monitors the Fund's liquidity positions on a regular basis.
C. Currency Risk Currency risk is the risk that financial instruments which are denominated or exchanged in a currency other than the Canadian dollar, which is the Fund’s reporting currency, will fluctuate due to changes in exchange rates. The table below indicates the foreign currencies to which the Fund had significant exposure as at period end in Canadian dollar terms, including the underlying principal amount of forward currency contracts, if any. The table also illustrates the potential impact to the Fund’s net assets attributable to contractholders, all other variables held constant, as a result of a 1% change in these currencies relative to the Canadian dollar. In practice, the actual results may differ from this sensitivity analysis and the difference could be significant.
2015
Currency Investments
Cash, Short-term Deposits and Overdrafts Total*
Impact on Net Assets Attributable to Contractholders
United States Dollar 111,148 1,133 112,281 1,123
Total 111,148 1,133 112,281 1,123
As Percent of Net Assets Attributable to Contractholders
99.3 1.0
*includes both monetary and non-monetary instruments
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AMERICAN GROWTH FUND 8.05A MANAGED BY: AGF INVESTMENTS INC. NOTES TO THE SCHEDULE OF INVESTMENT PORTFOLIO
(in Canadian $ thousands) As at December 31, 2015
C. Currency Risk (continued)
2014
Currency Investments
Cash, Short-term Deposits and Overdrafts Total*
Impact on Net Assets Attributable to
Contractholders
United States Dollar 89,898 2,049 91,947 919
Total 89,898 2,049 91,947 919
As Percent of Net Assets Attributable to Contractholders
99.1 1.0
*includes both monetary and non-monetary instruments
D. Other Price Risk Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate, currency or credit risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All securities present a risk of loss of capital. The Fund Manager moderates this risk through careful selection of securities and other financial instruments within the parameters of the investment strategy. The maximum risk resulting from financial instruments is equivalent to their fair value. For this Fund, the most significant exposure to other price risk arises from its investment in equity securities. As at December 31, 2015, had the prices on the respective stock exchanges for these securities raised (or lowered) by 1%, with all other variables held constant, net assets would have increased (or decreased) by approximately $1,111 or approximately 1.0% of total net assets attributable to contractholders. In practice, the actual results may differ and the difference could be significant.
E. Fair Value Classification The following table presents information about the Fund's assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Fund to determine such fair value:
2015 Assets Measured at Fair Value
Assets measured at fair value
Level 1
Level 2
Level 3 Stocks
Total 111,148
-
-
111,148
Total assets measured at fair value 111,148
-
-
111,148
2014 Assets Measured at Fair Value
Assets measured at fair value
Level 1
Level 2
Level 3
Stocks
Total
89,898
-
-
89,898
Total assets measured at fair value 89,898
-
-
89,898
There have not been any significant transfers in or out of Level 1 or 2 during the period.
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Individual Investment FundsAmerican Growth Fund 8.05A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Portfolio Turnover Rate
Management Expense Ratio
(unaudited)
The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily netasset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did
not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only.No management expense rat io is calculated for the Preferred Ser ies 2 guarantee pol icy opt ion as such fees are charged di rect ly to the contractholder.
The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual VariableInsurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout
the year. A portfol io turnover rate of 100% is equivalent to the Fund buying and sel l ing al l of the securi t ies in i ts portfol io once in the course of the year.
(2)
(1)
The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years.
(1)
(2)
(unaudited)
For the years ended December 31
Portfolio Turnover Rate (%)
2015 2014 2013 2012 2011
79.62 49.14 64.22 42.09 52.50
For the years ended December 31 2015 2014 2013 2012 2011
75/75 guarantee policy
75/100 guarantee policy
100/100 guarantee policy
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
3.33 3.34 3.34 3.32 3.28
3.11 3.12 3.12 3.06 3.03
1.67 1.68 1.68 1.67 1.64
3.10 3.12 3.13 3.08 3.02
3.26 3.27 3.28 3.17 3.18
3.64 3.64 3.64 3.74 3.72
2.59 2.60 2.59 2.56 -
2.86 2.87 2.87 - -
3.25 3.27 3.25 - -
No Load
Back-End Load
Managed Money
-
Individual Investment FundsGrowth & Income Fund 6.10A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Bonds 9,377
Stocks 15,322
Investment properties -
Mortgages and sales
agreements-
Investment fund units -
Cash and short-term deposits 397
Investment income due and accrued 77
Due to The Great-West Life Assurance Company (note 12) 3
Due to brokers -
Statement of Financial Position Statement of Comprehensive Income
December 31
6,261
17,644
-
-
-
4,886
48
9
526
December 31 December 31December 31
Net assets attributable to contractholders - beginning of year
Contractholder deposits 2,255 2,977
Statement of Changes in Net Assets Attributable
to Contractholders
Contractholder withdrawals (5,061) (5,241)
Increase (decrease) from
operations
Investments
Investment properties income - -
Expenses
Management fees (note 12) 680
Investment properties expenses -
Other 66
Total expenses 807 867
734
-
71
Net increase (decrease) in net assets
from operations attributable to
contractholders (128) 1,858Total investments 24,699 23,908
Due to outside parties - -
Total liabilities excluding net
assets attributable to
contractholders 22609
Net assets attributable to
contractholders 25,299 28,233
28,63928,233
(128) 1,858
Change in net assets attributable to contractholders
(2,934) (406)
Net assets attributable to
contractholders - end of year25,299 28,233
(in Canadian $ thousands)
- 3Derivatives (note 11)
Mortgages on investment properties (note 6) - -
December 31 December 31
2015 2014 2015 2014
2015 2014
For the years ended
For the years ended
Assets
Due from The Great-West Life
Assurance Company (note 12) - -
Due from brokers 148 -
Due from outside parties - -
Total assets 25,321 28,842
Overdrafts - -
Derivatives (note 11) 19 74
Income
Net gain (loss) on investments 557 2,532
Miscellaneous income (loss) 122 193
Total Income 679 2,725
Transaction costs 47 48
Withholding taxes 14 14
Liabilities
-
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.(in Canadian $ thousands)
Statement of Cash Flows
For the years ended December 31
2015 2014
Net Inflow (Outflow) of Cash Related to the Following Activities
Operating Activities
Increase (decrease) in net assets from operations attributable to contractholders (128) 1,858
Adjustments
Realized (gains) losses (3,045) (2,851)
Unrealized (gains) losses 3,037 754
Gross proceeds of disposition of investments 38,140 29,641
Gross payments for the purchase of investments (38,978) (25,638)
Change in investment income due and accrued (29) 28
Change in due from/to The Great-West Life Assurance Company (6) 4
Change in due from/to brokers (674) 524
Change in due from/to outside parties - -
Change in mortgages on investment properties - -
(1,683) 4,320
Financing Activities
Contractholder deposits 2,255 2,977
Contractholder withdrawals (5,061) (5,241)
(2,806) (2,264)
Net increase (decrease) in cash, short-term deposits and overdrafts (4,489) 2,056
Cash, short-term deposits and overdrafts, beginning of year 4,886 2,830
Cash, short-term deposits and overdrafts, end of year 397 4,886
Supplementary cash flow information
Interest received 189 204
Dividends received 331 332
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Individual Investment FundsGrowth & Income Fund 6.10A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Net Assets Attributable to Contractholders Per Unit (note 10)
Net Assets Attributable to Contractholders by Category
(in Canadian $ thousands, except per unit amounts)
The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years.
For the years ended December 31Number of units outstanding
2015 2014 2013 2012 2011
Investment Only
Individual No-Load (IA)
Individual Back-End Load (IB)
Managed Money (IC)
75/75 guarantee policy
75/100 guarantee policy
100/100 guarantee policy
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
PS2 75/75 guarantee policy
PS2 75/100 guarantee policy
PS2 100/100 guarantee policy
- - 1 1 1
20,997 25,028 28,467 33,743 42,316
23,305 27,361 30,831 36,026 43,794
2,530 3,113 3,496 4,803 7,151
69,810 65,703 47,558 55,318 47,102
66,878 57,531 51,672 41,890 34,634
165,123 161,357 154,163 126,916 88,129
- - - - -
- - - - -
91,377 39,450 16,940 747 -
- - - - -
Net asset value per unit
2015 2014 2013 2012 2011
- - 382.07 321.08 296.69
419.26 422.65 396.97 343.96 327.63
438.72 441.30 413.59 357.57 339.79
423.22 420.15 388.61 331.57 311.02
12.75 12.83 12.02 10.39 9.87
12.64 12.73 11.95 10.35 9.84
12.46 12.57 11.82 10.25 9.78
- - - - -
- - - - -
- - - - -
14.41 14.09 12.84 10.79 -
6,360
-
7,993
-
-
-
-
-
-
-
14.41
-
14.09
-
-
-
-
-
-
-
For the years ended December 31
Investment Only
Individual No-Load (IA)
Individual Back-End Load (IB)
Managed Money (IC)
100/100 guarantee policy
75/100 guarantee policy
75/75 guarantee policy
- -
8,803 10,578
10,224 12,075
1,071 1,308
890 843
845 733
2,057 2,028
- -
- -
- -
1,317 556
-
11,301
12,751
1,359
572
617
1,822
-
-
-
218
-
11,606
12,882
1,592
575
433
1,301
-
-
-
8
-
13,864
14,881
2,224
465
341
862
-
-
-
-
Net asset value
2015 2014 2013 2012 2011
92
-
113
-
-
-
-
-
-
-
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
PS2 75/75 guarantee policy
PS2 75/100 guarantee policy
PS2 100/100 guarantee policy
Increase (decrease) per unit
2015 2014
- -
(3.39) 25.68
(2.58) 27.71
3.07 31.54
(0.08) 0.81
(0.09) 0.78
(0.11) 0.75
- -
- -
- -
0.32 1.25
0.32
-
0.30
-
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Canadian Bonds
Federal Government
Canada Housing Trust No. 1 2.35% 12-15-2018 410,000 429 427
Canada Housing Trust No. 1 Floating Rate 09-15-2019 290,000 289 288
Canada Post Corp. 4.36% 07-16-2040 50,000 64 65
Government of Canada 1.50% 06-01-2026 70,000 69 70
Government of Canada 3.00% 12-01-2036 Real Return 40,000 73 74
Government of Canada 3.00% 12-01-2036 Real Return 80,000 145 147
Government of Canada 4.25% 12-01-2026 Real Return 25,000 53 52
Government of Canada 5.00% 06-01-2037 325,000 484 485
Government of Canada 5.75% 06-01-2033 125,000 192 193
Total Federal Government 1,798 1,801
Provincial Governments
CDP Financial Inc. 4.60% 07-15-2020 65,000 74 74
Labrador Island 3.76% 06-01-2033 250,000 290 289
Province of British Columbia 3.70% 12-18-2020 25,000 28 28
Province of British Columbia 5.70% 06-18-2029 175,000 235 234
Province of Manitoba 4.60% 03-05-2038 65,000 77 78
Province of Manitoba 4.70% 09-22-2017 25,000 27 27
Province of Nova Scotia 4.40% 06-01-2042 45,000 52 53
Province of Ontario 2.85% 06-02-2023 425,000 450 450
Province of Ontario 4.20% 06-02-2020 155,000 174 174
Province of Ontario 5.60% 06-02-2035 285,000 384 387
Province of Quebec 3.50% 12-01-2022 150,000 166 166
Province of Quebec 4.50% 12-01-2018 215,000 238 237
Province of Quebec 5.00% 12-01-2041 110,000 144 143
Province of Quebec Floating Rate 12-19-2018 100,000 100 100
Total Provincial Governments 2,439 2,440
Corporate - Non Convertible
Aimia Inc. 5.60% 05-17-2019 50,000 54 53
Algonquin Power & Utilities Corp. 4.65% 02-15-2022 50,000 53 53
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Canadian Bonds (continued)
Corporate - Non Convertible (continued)
Bank of Montreal 2.10% 10-06-2020 50,000 50 50
Bank of Montreal 2.84% 06-04-2020 50,000 52 52
Bell Canada 4.35% 12-18-2045 50,000 47 46
Brookfield Asset Management Inc. 4.54% 03-31-2023 50,000 50 53
Brookfield Infrastructure Finance Ltd. 3.45% 03-11-2022 50,000 50 49
BRP Finance 5.14% 10-13-2020 40,000 45 44
Canadian Pacific Railway Ltd. 5.10% 01-14-2022 50,000 57 57
Canadian Pacific Railway Ltd. 6.45% 11-17-2039 50,000 64 60
Cascades Inc. 5.50% 07-15-2022 Callable 2017 25,000 32 34
CI Financial Corp. 2.65% 12-07-2020 50,000 50 51
CIBC Capital Trust 9.98% 06-30-2019 50,000 63 62
Cominar Real Estate Investment Trust 4.94% 07-27-2020 Callable 25,000 26 26
CPPIB Capital Inc. 1.40% 06-04-2020 100,000 100 100
Dollarama Inc. 3.10% 11-05-2018 50,000 51 51
Enbridge Inc. 4.57% 03-11-2044 75,000 69 65
Fairfax Financial Holdings Ltd. 6.40% 05-21-2021 75,000 84 85
First Capital Realty Inc. 4.32% 07-31-2025 50,000 52 52
FortisAlberta Inc. 4.27% 09-22-2045 Callable 50,000 52 52
GM Financial Services Company 3.25% 05-30-2017 50,000 51 51
Great Canadian Gaming Corp. 6.63% 07-25-2022 Callable 25,000 26 25
Greater Toronto Airports Authority 6.45% 12-03-2027 50,000 68 68
Husky Energy Inc. 3.55% 03-12-2025 25,000 25 24
Intact Financial Corp. 6.40% 11-23-2039 50,000 65 64
Leisureworld Senior Care Corp. 3.47% 02-03-2021 150,000 160 159
Loblaw Companies Ltd. 4.86% 03-12-2023 Callable 75,000 85 84
Magna International Inc. 3.10% 12-15-2022 50,000 50 51
Manufacturers Life Insurance Co. 4.16% 06-01-2022 75,000 78 78
NAV Canada 7.40% 06-01-2027 50,000 71 72
Northland Power Inc. 4.75% 06-30-2020 15,000 15 16
OMERS Realty Corp. 2.47% 11-12-2019 100,000 103 103
Parkland Fuel Corp. 5.50% 05-28-2021 Callable 2017 32,000 32 32
Pembina Pipeline Corp. 3.54% 02-03-2025 25,000 25 24
Quebecor Media Inc. 6.63% 01-15-2023 Restricted Warrant 25,000 26 26
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Canadian Bonds (continued)
Corporate - Non Convertible (continued)
RioCan Real Estate Investment Trust 3.29% 02-12-2024 60,000 59 59
Rogers Communications Inc. 4.00% 03-13-2024 50,000 52 52
Royal Bank of Canada 2.77% 12-11-2018 150,000 156 155
Scotiabank Tier I Trust 7.80% 06-30-2108 15,000 18 18
Sun Life Financial Inc. 2.60% 09-25-2025 90,000 90 90
TD Capital Trust IV Floating Rate 06-30-2108 25,000 30 29
The Bank of Nova Scotia 2.75% 08-13-2018 150,000 155 155
The Toronto-Dominion Bank 2.17% 04-02-2018 100,000 102 102
Thomson Reuters Corp. 4.35% 09-30-2020 50,000 54 54
Toromont Industries Ltd. 3.71% 09-30-2025 55,000 55 56
TransAlta Corp. 5.00% 11-25-2020 168,000 167 154
Valeant Pharmaceuticals International Inc. 6.75% 08-15-2018 30,000 39 41
VW Credit Canada Inc. 2.50% 10-01-2019 12,000 12 12
Wells Fargo Financial Canada Corp. 3.87% 05-21-2025 100,000 103 103
WestJet Airlines Ltd. 3.29% 07-23-2019 10,000 10 10
Total Corporate - Non Convertible 3,083 3,062
Supra - National
Inter-American Development Bank 4.40% 01-26-2026 160,000 187 187
International Bank for Reconstruction and Development 1.88% 05-30-2019 50,000 52 51
Total Supra - National 239 238
Total Canadian Bonds 7,559 7,541
United States Bonds
Federal Government
United States Treasury 0.13% 01-15-2023 100,000 132 133
United States Treasury 2.25% 11-15-2024 80,000 107 111
United States Treasury 4.50% 02-15-2036 160,000 275 284
Total Federal Government 514 528
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
United States Bonds (continued)
Corporate - Non Convertible
Ciena Corp. 3.75% 10-15-2018 12,000 22 21
Citigroup Inc. 3.39% 11-18-2021 75,000 78 78
Citigroup Inc. Floating Rate 12-29-2049 75,000 99 103
Cott Beverages Inc. 5.38% 07-01-2022 2,000 3 3
Goldman Sachs Group Inc. 3.38% 02-01-2018 100,000 104 103
Goodyear Tire & Rubber Co. 5.13% 11-15-2023 22,000 29 31
Kinder Morgan Inc. 6.85% 02-15-2020 25,000 33 36
Laredo Petroleum 5.63% 01-15-2022 Restricted Warrant 35,000 43 42
Merrill Lynch & Co. Floating Rate 05-30-2022 100,000 103 102
Morgan Stanley 3.13% 08-05-2021 60,000 61 62
Neiman Marcus Group Ltd. 8.00% 10-15-2021 Restricted Warrant 31,000 43 32
NorthGroup Preferred Capital Corp. Floating Rate 01-29-2049 50,000 68 70
Palo Alto Networks Inc. 0.00% 07-01-2019 10,000 24 23
Pattern Energy Group Inc. 4.00% 07-15-2020 25,000 32 32
Priceline Group Inc. 0.90% 09-15-2021 16,000 22 22
Prudential Financial Inc. Floating Rate 06-15-2043 50,000 69 72
Red Hat Inc. 0.25% 10-01-2019 15,000 26 27
Salesforce.com Inc. 0.25% 04-01-2018 12,000 21 22
ServiceNow Inc. 0.00% 11-01-2018 17,000 28 30
XPO Logistics Inc. 6.50% 06-15-2022 35,000 42 45
Total Corporate - Non Convertible 950 956
Total United States Bonds 1,464 1,484
Global Bonds
Mexico
Mexican Bonds 8.00% 12-07-2023 507,500 45 46
Norway
Kommunalbanken AS 3.74% 05-27-2021 Callable 150,000 152 151
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Global Bonds (continued)
United Kingdom
Heathrow Funding Ltd. 3.00% 06-17-2023 150,000 154 155
Total Global Bonds 351 352
Total Bonds 9,374 9,377
Canadian Common Stock
Consumer Discretionary
Canadian Tire Corp. Ltd. Class A non-voting 1,493 179 176
Dollarama Inc. 1,738 98 139
Gildan Activewear Inc. 2,415 55 95
Magna International Inc. 2,529 100 142
Restaurant Brands International Inc. 2,873 140 149
Thomson Reuters Corp. 2,309 126 121
Consumer Staples
Alimentation Couche-Tard Inc. Class B Sub. voting 5,066 193 309
Loblaw Companies Ltd. 3,993 218 261
Metro Inc. 4,817 168 187
Energy
Canadian Energy Services & Technology Corp. 10,515 74 41
Canadian Natural Resources Ltd. 9,650 293 292
Enbridge Inc. 4,048 204 186
Inter Pipeline Ltd. 4,522 113 100
Keyera Corp. 1,727 64 70
Peyto Exploration & Development Corp. 3,588 108 89
Raging River Exploration Inc. 8,558 77 72
ShawCor Ltd. 1,249 37 35
Tourmaline Oil Corp. 1,936 62 43
Whitecap Resources Inc. 6,239 86 57
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Canadian Common Stock (continued)
Financials
Bank of Montreal 2,348 164 183
Brookfield Asset Management Inc. Class A limited voting 8,218 335 359
Colliers International Group Inc. 467 26 29
FirstService Corp. 1,388 63 78
Intact Financial Corp. 1,844 172 164
Manulife Financial Corp. 17,588 392 365
Royal Bank of Canada 7,738 533 574
The Bank of Nova Scotia 7,830 448 438
The Toronto-Dominion Bank 9,228 411 501
Industrials
Canadian National Railway Co. 6,421 477 497
Finning International Inc. 3,371 73 63
TransForce Inc. 3,152 75 74
Information Technology
CGI Group Inc. Class A Sub. voting 3,953 125 219
Constellation Software Inc. 79 46 46
Davis + Henderson Income Corp. 1,907 76 60
Open Text Corp. 1,706 105 113
The Descartes Systems Group Inc. 940 23 26
Materials
Agrium Inc. ADR 287 39 35
CCL Industries Inc. Class B non-voting 729 137 164
Goldcorp Inc. ADR 1,126 19 18
Intertape Polymer Group Inc. 2,888 43 54
Lundin Mining Corp. 11,927 54 45
Telecommunication Services
BCE Inc. 6,283 336 336
TELUS Corp. 6,019 252 230
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Canadian Common Stock (continued)
Total Canadian Common Stock 6,819 7,235
United States Common Stock
Consumer Discretionary
Amazon.com Inc. 222 154 208
Dollar General Corp. 1,395 131 139
Harman International Industries Inc. 308 41 40
Lennar Corp. Class A 2,166 150 147
Lowe's Companies Inc. 605 62 64
Omnicom Group Inc. 927 85 97
The Kraft Heinz Co. 354 35 36
Ulta Salon Cosmetics & Fragrance Inc. 447 98 114
Consumer Staples
Altria Group Inc. 1,642 121 132
Costco Wholesale Corp. 494 103 110
Mondelez International Inc. 1,050 60 65
Philip Morris International Inc. 1,210 131 147
Energy
Exxon Mobil Corp. 684 67 74
Newfield Exploration Co. 2,365 113 107
The Williams Companies Inc. 1,634 95 58
WPX Energy Inc. 1,042 10 8
Exchange Traded Funds
Global X MSCI Norway ETF 1,752 25 23
iShares MSCI China ETF 1,191 72 74
iShares MSCI Germany ETF 1,650 60 60
iShares MSCI Japan ETF 4,965 78 83
iShares MSCI Netherlands ETF 1,442 46 48
iShares MSCI South Korea Capped ETF 887 59 61
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
United States Common Stock (continued)
Financials
American Tower Corp. Class A 933 111 125
Ameriprise Financial Inc. 268 39 39
Forestar Group Inc. 668 11 10
JPMorgan Chase & Co. 1,253 106 114
Lincoln National Corp. 430 29 30
MetLife Inc. 464 30 31
Moody's Corp. 1,123 152 156
Morgan Stanley 2,914 133 128
Primerica Inc. 1,315 80 86
Raymond James Financial Inc. 1,311 103 105
T. Rowe Price Group Inc. 413 39 41
The Charles Schwab Corp. 3,346 135 152
Unum Group 2,186 95 101
Health Care
AbbVie Inc. 646 51 53
Bristol-Myers Squibb Co. 581 47 55
Edwards Lifesciences Corp. 565 62 62
Illumina Inc. 357 97 95
Laboratory Corp. of America Holdings 615 97 105
Regeneron Pharmaceuticals Inc. 137 98 103
Industrials
AGCO Corp. 1,058 67 66
Dun & Bradstreet Corp. 428 61 62
Fortune Brands Home & Security Inc. 807 60 62
Honeywell International Inc. 1,051 140 151
Huntington Ingalls Industries Inc. 114 17 20
Northrop Grumman Corp. 398 91 104
Robert Half International Inc. 792 55 52
The Boeing Co. 839 152 168
Waste Management Inc. 1,458 97 108
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
United States Common Stock (continued)
Information Technology
Adobe Systems Inc. 807 97 105
Alliance Data Systems Corp. 395 135 151
Cognizant Technology Solutions Corp. 1,519 126 126
Corning Inc. 3,542 85 90
Equinix Inc. Real Estate Investment Trust 273 105 114
Facebook Inc. 1,495 184 216
IBM Corp. 191 37 36
MasterCard Inc. Class A 1,178 144 159
Palo Alto Networks Inc. 164 42 40
Red Hat Inc. 1,450 138 166
Salesforce.com Inc. 1,505 143 163
ServiceNow Inc. 387 39 46
Western Digital Corp. 399 43 33
Materials
Vulcan Materials Co. 581 80 76
Telecommunication Services
AT&T Inc. 682 30 32
T-Mobile US Inc. 2,572 140 139
Total United States Common Stock 5,619 5,971
Global Common Stock
Australia
Brambles Ltd. 4,354 39 50
Recall Holdings Ltd. 906 6 6
Austria
Voestalpine AG 798 40 34
Belgium
Anheuser-Busch InBev NV 565 85 97
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Global Common Stock (continued)
Bermuda
Invesco Ltd. 1,223 54 57
Norwegian Cruise Line Holdings Ltd. 1,643 134 132
Brazil
Petroleo Brasileiro SA 799 2 2
Vale SA 256 1 1
Vale SA ADR 218 1 1
Convertible Preferred
Teva Pharmaceutical Industries Ltd. Preferred Shares 35 48 49
France
Arkema SA 18 2 2
BNP Paribas SA 455 38 36
Schneider Electric SA 422 36 33
Total SA 482 30 30
Germany
Hannover Rueck SE 821 114 130
Henkel AG & Co. KGaA 551 66 73
Hong Kong
CNOOC Ltd. 27,209 40 39
Wharf Holdings Ltd. Real Estate Investment Trust 4,363 33 33
Ireland
Allergan PLC 295 74 128
Israel
Teva Pharmaceutical Industries Ltd. ADR 541 45 49
Italy
Intesa Sanpaolo SPA 5,125 25 24
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Global Common Stock (continued)
Japan
Astellas Pharma Inc. 5,974 110 117
Canon Inc. 700 28 29
Fujifilm Holdings Corp. 914 48 53
Keyence Corp. 153 90 116
Nippon Telegraph & Telephone Corp. 1,752 81 96
Netherlands
ING Groep NV 3,118 62 58
Norway
Fred Olsen Energy ASA 407 3 2
Singapore
Keppel Corp. Ltd. 3,570 23 23
Keppel Real Estate Investment Trust 845 1 1
Singapore Press Holdings Ltd. 2,685 10 10
South Korea
Samsung Electronics Co. Ltd. GDR 167 109 123
Spain
Banco Santander 4,556 35 31
Switzerland
ACE Ltd. 979 132 157
Roche Holding AG Genusscheine 272 97 104
Thailand
PTT Exploration and Production Public Co. 1,896 5 4
United Kingdom
British American Tobacco PLC 1,069 78 82
Lloyds Banking Group PLC 5,132 8 8
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth & Income Fund 6.10A
Managed By: AGF Investments Inc.
Global Common Stock (continued)
United Kingdom (continued)
Persimmon PLC 1,127 48 47
Royal Dutch Shell PLC Class B 712 24 22
The Sage Group PLC 2,207 23 27
Total Global Common Stock 1,928 2,116
Total Stocks 14,366 15,322
Derivatives
Forward Currency Contracts
Net unrealized loss - - (19)
Total Derivatives - (19)
Total Investments 23,740 24,680
-
GROWTH & INCOME FUND 6.10A MANAGED BY: AGF INVESTMENTS INC. NOTES TO THE SCHEDULE OF INVESTMENT PORTFOLIO
(in Canadian $ thousands) As at December 31, 2015
Introduction
The Fund's objective in managing risk is the creation and protection of contractholder value. Risk is inherent in the Fund's activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Fund's continuing profitability. The Fund can be exposed to liquidity risk, market risk (which includes currency risk, interest rate risk and other price risk) and credit risk arising from the financial instruments it holds.
A. Risk Management The Fund’s investment activities expose it to a variety of financial risks. The Schedule of Investment Portfolio presents the securities held by the Fund as at December 31, 2015, and groups the securities by asset type, geographic region and/or market segment. The following sections describe the significant risks that are relevant to the Fund. To assist with managing risk, The Great-West Life Assurance Company (the Company) maintains a governance structure that oversees the Fund's investment activities and monitors compliance with the Fund's stated investment strategy and other regulations.
B. Liquidity Risk Liquidity risk arises when a Fund encounters difficulty in meeting its financial obligations as they come due. The Fund is exposed to liquidity risk due to potential daily cash redemptions of redeemable units. The Fund retains sufficient cash and cash equivalent positions to maintain adequate liquidity to meet the obligation to fund daily cash redemptions of their redeemable units. Some securities are illiquid due to legal restrictions on their resale, the nature of the investment, or simply a lack of interested buyers for a particular security or security type. Certain securities may become less liquid due to changes in market conditions, such as interest rate changes or market volatility, which could impair the ability of a Fund to sell such securities quickly. In accordance with the Fund's policy, the Company monitors the Fund's liquidity positions on a regular basis.
C. Currency Risk Currency risk is the risk that financial instruments which are denominated or exchanged in a currency other than the Canadian dollar, which is the Fund’s reporting currency, will fluctuate due to changes in exchange rates. The table below indicates the foreign currencies to which the Fund had significant exposure as at period end in Canadian dollar terms, including the underlying principal amount of forward currency contracts, if any. The table also illustrates the potential impact to the Fund’s net assets attributable to contractholders, all other variables held constant, as a result of a 1% change in these currencies relative to the Canadian dollar. In practice, the actual results may differ from this sensitivity analysis and the difference could be significant.
2015
Currency Investments
Cash, Short-term Deposits and Overdrafts Total*
Impact on Net Assets Attributable to Contractholders
United States Dollar 7,936 99 8,035 80
Other Currencies 1,465 - 1,465 15
Total 9,401 99 9,500 95
As Percent of Net Assets Attributable to Contractholders
37.6 0.4
*includes both monetary and non-monetary instruments
-
GROWTH & INCOME FUND 6.10A MANAGED BY: AGF INVESTMENTS INC. NOTES TO THE SCHEDULE OF INVESTMENT PORTFOLIO
(in Canadian $ thousands) As at December 31, 2015
C. Currency Risk (continued)
2014
Currency Investments
Cash, Short-term Deposits and Overdrafts Total*
Impact on Net Assets Attributable to
Contractholders
United States Dollar 7,559 1,295 8,854 89
Total 7,559 1,295 8,854 89
As Percent of Net Assets Attributable to Contractholders
31.4 0.3
*includes both monetary and non-monetary instruments
D. Interest Rate Risk Interest rate risk arises on interest-bearing financial instruments such as bonds. The Fund is exposed to the risk that the value of interest-bearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. Due to the nature of short-term fixed income securities with a remaining term-to-maturity of less than one year, these investments are not generally exposed to a significant risk that their value will fluctuate in response to changes in the prevailing levels of market interest rates. The risk is professionally managed at the security and fund level by the Company. The table below summarizes the Fund's exposure to interest rate risks by remaining term to maturity.
2015
Less than 1 year 1 – 5 years 5 – 10 years > 10 years Total
Bonds - 3,043 2,876 3,458 9,377
2014
Less than 1 year 1 – 5 years 5 – 10 years > 10 years Total
Bonds - 3,333 2,888 40 6,261
As at December 31, 2015, had prevailing interest rates raised or lowered by 1% assuming a parallel shift in the yield curve, with all other variables held constant, net assets would have decreased or increased, respectively, by approximately $639 or approximately 2.5% of total net assets attributable to contractholders. The Fund’s sensitivity to interest rate changes was estimated using the weighted average duration of the bond portfolio. In practice, the actual results may differ and the difference could be significant.
E. Credit Risk Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. The Fund’s greatest concentration of credit risk is in debt securities, such as bonds. The fair value of debt instruments includes consideration of the credit worthiness of the debt issuer. The carrying amount of debt instruments represents the maximum credit risk exposure as at December 31, 2015. The amount of credit risk to any one issuer may be determined from the information reported in the Schedule of Investment Portfolio. The Fund may invest in short-term fixed income securities issued or guaranteed primarily by the Government of Canada or any Canadian provincial government, obligations of Canadian chartered banks or trust companies, and commercial paper with approved credit ratings. The risk of default on these short-term fixed income securities is considered low. The Company monitors credit risk and credit ratings on a regular basis. All new counterparties to financial instruments are subject to an approval process.
-
GROWTH & INCOME FUND 6.10A MANAGED BY: AGF INVESTMENTS INC. NOTES TO THE SCHEDULE OF INVESTMENT PORTFOLIO
(in Canadian $ thousands) As at December 31, 2015
E. Credit Risk (continued)
There was no change in fair values of financial liabilities as a result of changes in credit risks. All transactions in listed securities are settled and paid for upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. Credit ratings are obtained from the Bloomberg Composite rating unless a rating from another agency (DBRS, Standard & Poor's, Moody's Investors Service and/or Fitch Ratings) is lower, in which case the lower rating is used. Debt securities by credit rating are as follows:
2015 2014
Percent of Total Bonds
(%)
Percent of Total Net Assets Attributable to Contractholders
(%)
Percent of Total Bonds
(%)
Percent of Total Net Assets Attributable to
Contractholders (%)
AAA 32.3 12.0 52.0 11.5
AA 11.2 4.1 - -
A 27.5 10.2 22.9 5.1
BBB 22.5 8.3 25.1 5.6
BB and lower 5.2 1.9 - -
NR * 1.3 0.5 - -
Total 100.0 37.0 100.0 22.2
*bonds rated NR are mortgage backed securities or privately placed bonds or bonds that have not been rated by a rating agency
F. Other Price Risk Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate, currency or credit risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All securities present a risk of loss of capital. The Fund Manager moderates this risk through careful selection of securities and other financial instruments within the parameters of the investment strategy. The maximum risk resulting from financial instruments is equivalent to their fair value. For this Fund, the most significant exposure to other price risk arises from its investment in equity securities. As at December 31, 2015, had the prices on the respective stock exchanges for these securities raised (or lowered) by 1%, with all other variables held constant, net assets would have increased (or decreased) by approximately $153 or approximately 0.6% of total net assets attributable to contractholders. In practice, the actual results may differ and the difference could be significant.
-
GROWTH & INCOME FUND 6.10A MANAGED BY: AGF INVESTMENTS INC. NOTES TO THE SCHEDULE OF INVESTMENT PORTFOLIO
(in Canadian $ thousands) As at December 31, 2015
G. Fair Value Classification
The following table presents information about the Fund's financial assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Fund to determine such fair value:
2015Assets and Liabilities Measured at Fair Value
Assets measured at fair value Level 1 Level 2 Level 3 Total
Bonds - 9,377 - 9,377
Stocks 13,784 1,538 - 15,322
Total assets measured at fair value 13,784 10,915 - 24,699
Liabilities measured at fair value
Derivatives - 19 - 19
Net assets measured at fair value 13,784 10,896 - 24,680
2014 Assets and Liabilities Measured at Fair Value
Assets measured at fair value Level 1 Level 2 Level 3 Total
Bonds - 6,261 - 6,261
Stocks 17,644 - - 17,644
Derivatives - 3 - 3
Total assets measured at fair value 17,644 6,264 - 23,908
Liabilities measured at fair value
Derivatives - 74 - 74
Net assets measured at fair value 17,644 6,190 - 23,834
In accordance with the Fund’s valuation policy, the Fund applies fair value adjustment factors to the quoted market prices for certain non-North American equities when North American intraday stock market movements exceed predetermined tolerances. The adjustment factors are applied in order to estimate the impact on fair values of events occurring between the close of the non-North American stock markets and the close of business for the Fund. If fair value adjustment factors are applied, non-North American equities are classified as Level 2. Consequently, during the periods, non-North American equities are frequently transferred between Level 1 (unadjusted quoted market prices) and Level 2 (adjusted market prices). As of December 31, 2015, these securities were classified as Level 2.
-
Individual Investment FundsGrowth & Income Fund 6.10A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Portfolio Turnover Rate
Management Expense Ratio
(unaudited)
The management expense ratio has been calculated as the aggregate of all fees, taxes, charges and other expenses incurred during the year divided by the average daily netasset value of the segregated fund attributable to the particular fee option. All ratios shown are on an annual basis. In circumstances where the particular fund or fee option did
not have twelve months' exposure the ratios have been annualized. Management expense ratios are calculated for Individual Retirement and Investment Services clients only.No management expense rat io is calculated for the Preferred Ser ies 2 guarantee pol icy opt ion as such fees are charged di rect ly to the contractholder.
The portfolio turnover rates presented in the financial statements reflects the Canadian Life and Health Insurance Association Inc. (CLHIA) Guideline G2, Individual VariableInsurance Contracts Relating to Segregated Funds 12.3(a)(iii). The portfolio turnover rates indicate how actively the portfolio investments have been bought or sold throughout
the year. A portfol io turnover rate of 100% is equivalent to the Fund buying and sel l ing al l of the securi t ies in i ts portfol io once in the course of the year.
(2)
(1)
The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years.
(1)
(2)
(unaudited)
For the years ended December 31
Portfolio Turnover Rate (%)
2015 2014 2013 2012 2011
143.16 90.31 77.33 68.74 115.64
For the years ended December 31 2015 2014 2013 2012 2011
75/75 guarantee policy
75/100 guarantee policy
100/100 guarantee policy
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
3.04 3.05 3.04 3.04 3.02
2.82 2.83 2.82 2.80 2.78
1.50 1.51 1.50 1.50 1.49
2.82 2.82 2.82 2.79 2.75
2.96 2.97 2.97 2.91 2.86
3.12 3.13 3.14 3.20 3.19
- - - - -
- - - - -
- - - - -
No Load
Back-End Load
Managed Money
-
Individual Investment FundsGrowth Equity Fund 6.08A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Bonds 16
Stocks 23,021
Investment properties -
Mortgages and sales
agreements-
Investment fund units -
Cash and short-term deposits 985
Investment income due and accrued 23
Due to The Great-West Life Assurance Company (note 12) 1
Due to brokers 6
Statement of Financial Position Statement of Comprehensive Income
December 31
18
26,970
-
-
-
587
20
-
-
December 31 December 31December 31
Net assets attributable to contractholders - beginning of year
Contractholder deposits 1,527 2,003
Statement of Changes in Net Assets Attributable
to Contractholders
Contractholder withdrawals (5,118) (6,976)
Increase (decrease) from
operations
Investments
Investment properties income - -
Expenses
Management fees (note 12) 750
Investment properties expenses -
Other 69
Total expenses 889 1,090
904
-
83
Net increase (decrease) in net assets
from operations attributable to
contractholders 204 (655)Total investments 23,037 26,988
Due to outside parties - -
Total liabilities excluding net
assets attributable to
contractholders 7-
Net assets attributable to
contractholders 24,221 27,608
33,23627,608
204 (655)
Change in net assets attributable to contractholders
(3,387) (5,628)
Net assets attributable to
contractholders - end of year24,221 27,608
(in Canadian $ thousands)
- -Derivatives (note 11)
Mortgages on investment properties (note 6) - -
December 31 December 31
2015 2014 2015 2014
2015 2014
For the years ended
For the years ended
Assets
Due from The Great-West Life
Assurance Company (note 12) - 13
Due from brokers 183 -
Due from outside parties - -
Total assets 24,228 27,608
Overdrafts - -
Derivatives (note 11) - -
Income
Net gain (loss) on investments 1,036 412
Miscellaneous income (loss) 57 23
Total Income 1,093 435
Transaction costs 66 102
Withholding taxes 4 1
Liabilities
-
Growth Equity Fund 6.08A
Managed By: AGF Investments Inc.(in Canadian $ thousands)
Statement of Cash Flows
For the years ended December 31
2015 2014
Net Inflow (Outflow) of Cash Related to the Following Activities
Operating Activities
Increase (decrease) in net assets from operations attributable to contractholders 204 (655)
Adjustments
Realized (gains) losses (2,663) (3,275)
Unrealized (gains) losses 1,965 3,294
Gross proceeds of disposition of investments 17,575 23,776
Gross payments for the purchase of investments (12,926) (18,180)
Change in investment income due and accrued (3) 41
Change in due from/to The Great-West Life Assurance Company 14 (17)
Change in due from/to brokers (177) 18
Change in due from/to outside parties - -
Change in mortgages on investment properties - -
3,989 5,002
Financing Activities
Contractholder deposits 1,527 2,003
Contractholder withdrawals (5,118) (6,976)
(3,591) (4,973)
Net increase (decrease) in cash, short-term deposits and overdrafts 398 29
Cash, short-term deposits and overdrafts, beginning of year 587 558
Cash, short-term deposits and overdrafts, end of year 985 587
Supplementary cash flow information
Interest received 1 1
Dividends received 331 467
-
Individual Investment FundsGrowth Equity Fund 6.08A
The Great-West Life Assurance Company
Managed By: AGF Investments Inc.
Net Assets Attributable to Contractholders Per Unit (note 10)
Net Assets Attributable to Contractholders by Category
(in Canadian $ thousands, except per unit amounts)
The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the past five years.
For the years ended December 31Number of units outstanding
2015 2014 2013 2012 2011
Investment Only
Individual No-Load (IA)
Individual Back-End Load (IB)
Managed Money (IC)
75/75 guarantee policy
75/100 guarantee policy
100/100 guarantee policy
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
PS2 75/75 guarantee policy
PS2 75/100 guarantee policy
PS2 100/100 guarantee policy
- - - - -
19,885 22,967 28,108 38,289 50,487
27,142 32,005 37,821 47,114 59,319
4,527 6,114 7,843 13,927 17,649
61,566 62,397 43,811 35,639 32,222
68,674 65,125 67,694 73,547 74,858
8,468 8,220 15,386 10,573 7,965
24,087 3,885 2,813 - -
9,487 - - - -
63,373 60,406 26,267 21,228 -
- - - - -
Net asset value per unit
2015 2014 2013 2012 2011
- - - - -
404.31 404.05 417.82 379.91 390.00
422.68 421.48 434.90 394.58 404.19
365.20 359.23 365.64 327.24 330.66
12.34 12.30 12.70 11.52 11.81
12.15 12.15 12.56 11.43 11.74
11.92 11.95 12.39 11.30 11.65
11.13 11.03 11.31 - -
11.04 - - - -
- - - - -
12.21 11.79 11.79 10.36 -
6,961
10,607
6,754
11,793
7,975
12,185
24,335
-
-
-
12.21
12.21
11.79
11.79
11.79
11.79
10.36
-
-
-
For the years ended December 31
Investment Only
Individual No-Load (IA)
Individual Back-End Load (IB)
Managed Money (IC)
100/100 guarantee policy
75/100 guarantee policy
75/75 guarantee policy
- -
8,040 9,280
11,472 13,489
1,653 2,196
760 768
834 791
101 98
268 43
105 -
- -
774 712
-
11,744
16,448
2,868
556
851
191
32
-
-
310
-
14,547
18,590
4,557
411
841
120
-
-
-
220
-
19,690
23,976
5,836
380
878
93
-
-
-
-
Net asset value
2015 2014 2013 2012 2011
85
130
80
139
94
144
252
-
-
-
PS1 75/75 guarantee policy
PS1 75/100 guarantee policy
PS1 100/100 guarantee policy
PS2 75/75 guarantee policy
PS2 75/100 guarantee policy
PS2 100/100 guarantee policy
Increase (decrease) per unit
2015 2014
- -
0.26 (13.77)
1.20 (13.42)
5.97 (6.41)
0.04 (0.40)
- (0.41)
(0.03) (0.44)
0.10 (0.28)
(0.22) -
- -
0.42 -
0.42
0.42
-
-
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Canadian Bonds
Corporate - Convertible
Eguana Technologies Inc. 3.00% 08-07-2018 18,333 16 16
Total Corporate - Convertible 16 16
Total Canadian Bonds 16 16
Total Bonds 16 16
Canadian Common Stock
Consumer Discretionary
AutoCanada Inc. 4,775 125 115
Dollarama Inc. 2,750 218 220
Gaming Nation Inc. 126,500 255 86
Linamar Corp. 7,975 179 596
Magna International Inc. 6,261 338 351
The Intertain Group Ltd. 24,390 345 243
Consumer Staples
Alimentation Couche-Tard Inc. Class B Sub. voting 17,352 365 1,057
Alliance Grain Traders Inc. 20,133 402 684
Clearwater Seafoods Inc. 6,646 56 80
Loblaw Companies Ltd. 6,314 388 413
Energy
Boulder Energy Ltd. 11,033 85 18
Buried Hill Energy (Cyprus) Public Co. Ltd. Subscription Receipts 43,300 73 6
Canadian Energy Services & Technology Corp. 44,713 415 173
Canadian Natural Resources Ltd. 11,961 306 361
Cenovus Energy Inc. 8,211 150 144
Granite Oil Corp. 7,353 155 59
Lonestar West Inc. 7,902 21 6
Parex Resources Inc. 62,973 719 640
Petrowest Energy Services Corp. Class A 97,015 103 50
Growth Equity Fund 6.08A
Managed By: AGF Investments Inc.
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth Equity Fund 6.08A
Managed By: AGF Investments Inc.
Canadian Common Stock (continued)
Energy (continued)
Precision Drilling Corp. 40,156 255 220
Rock Energy Inc. 48,047 274 70
Secure Energy Services Inc. 33,100 291 277
ShawCor Ltd. 2,712 53 76
Suncor Energy Inc. 13,530 446 483
Tamarack Valley Energy Ltd. 157,353 775 470
Tourmaline Oil Corp. 75 2 2
Yangarra Resources Ltd. 149,270 487 82
Financials
Acasta Enterprises Inc. 37,996 376 361
Acasta Enterprises Inc. Warrants 18,998 4 9
CI Financial Corp. 7,807 254 239
Colliers International Group Inc. 7,330 68 452
Diversified Royalty Corp. 152,676 397 369
Dundee Corp. Class A Sub. voting 392 6 2
Element Financial Corp. 33,575 502 561
FirstService Corp. 7,278 44 407
Guardian Capital Group Ltd. 18,137 290 330
Intact Financial Corp. 5,461 357 484
Manulife Financial Corp. 19,500 404 404
Milestone Apartments Real Estate Investment Trust 33,370 446 502
Real Matters Inc. Private Placement Class A 447,714 374 1,119
Real Matters Inc. Private Placement Class B 171,183 205 428
RIFCO Inc. 9,985 40 16
Royal Bank of Canada 4,200 308 311
The Bank of Nova Scotia 10,044 612 562
Tricon Capital Group Inc. 15,554 99 141
Westaim Corp. 45,000 131 123
Health Care
CRH Medical Corp. 90,295 311 370
Merus Labs International Inc. 116,806 337 266
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth Equity Fund 6.08A
Managed By: AGF Investments Inc.
Canadian Common Stock (continued)
Health Care (continued)
Nobilis Health Corp. 14,500 131 57
Nobilis Health Corp. Purchase Warrants 7,250 - 1
Industrials
Aecon Group Inc. 18,007 189 277
Badger Daylighting Inc. 9,487 169 232
Boyd Group Income Fund 7,869 358 520
Canadian National Railway Co. 6,490 478 502
Dirtt Environmental Solutions Ltd. 31,420 223 218
Eguana Technologies Inc. 41,596 21 4
Stantec Inc. 7,474 56 257
WestJet Airlines Ltd. 11,036 168 225
Information Technology
Absolute Software Corp. 459 3 3
CGI Group Inc. Class A Sub. voting 10,576 396 586
DealNet Capital Corp. Private Placement 195,000 78 142
DealNet Capital Corp. Restricted Warrant 97,500 - 22
Espial Group Inc. 151,664 445 352
Frankly Inc. 22,226 68 17
Kinaxis Inc. 9,785 144 459
Payfirma Corp. Private Placement 55,000 83 83
Pure Technologies Ltd. 13,379 36 62
RDM Corp. 37,844 103 149
Sandvine Corp. 32,906 113 116
Materials
B2Gold Corp. 47,536 102 67
Canam Group Inc. 8,856 119 123
Capstone Mining Corp. 224,390 316 99
Detour Gold Corp. 28,714 370 414
EcoSynthetix Inc. 21,689 87 28
Global Atomic Fuels Corp. 78,450 124 6
-
(in Canadian $ thousands, except number of units, shares or par value)
Schedule of Investment Portfolio
As at December 31, 2015
No. of Units,
Shares or Average Fair
Par Value Cost Value
Growth Equity Fund 6.08A
Managed By: AGF Investments Inc.
Canadian Common Stock (continued)
Materials (continued)
International Forest Products Ltd. Class A 13,829 222 194
Lundin Mining Corp. 102,694 459 390
Semafo Inc. 96,986 342 340
Silvercrest Metals Inc. 4,045 1 1
Tahoe Res