Investment Edge Quarter 1 2011

Investment Edge
Volume 4 Quarter 1 2011

Canada Life is a leading provider of life, pensions and investments with over 100 years’
experience serving the financial planning needs of our customers in the Irish market.
We receive consistently high financial ratings from the independent rating agencies
including a AA* rating from Standard & Poor’s.

We only partner with the best investment managers to offer a broad range of choice to
Irish investors. And we are backed by strength. Our parent is Great-West Life, one of the
world’s leading life assurance companies, making us one of the largest and strongest life
and pension companies operating in the Irish market today.

* The financial rating shown for the Canada Life Assurance Company is provided by Standard & Poor’s.
Standard & Poor’s is a rating agency which provides ratings on the financial strength of companies.
This information is correct at the time of going to print.

Introduction
Welcome to the second quarter edition of Investment Edge. The second quarter was
a mixed bag for markets and overall the MSCI World Index fell by 0.9% in Euro terms
during the period. Equity markets initially started 2011 where they had left off last year by
extending the rally that began last summer on the back of strong corporate earnings and
positive economic momentum. By late February, equities began what many commentators
believed was an overdue correction prompted by increasing political unrest in the
Middle East and rising inflation concerns. The pullback intensified following the massive
earthquake and tsunami in Japan in mid-March. Markets regained some ground in the
second half of March as the economic impact of the earthquake in Japan was not expected to have a
significant effect on global growth and there was some further positive US economic data.
Developed equity markets broadly outperformed emerging equity markets; however, that trend began to
reverse late in the quarter. Sector performance varied throughout the quarter and finished with energy being
the only sector to produce a gain during the quarter benefiting from robust demand and tensions in the
Middle East.
At home another round of stress tests of Irish banks commissioned by the Central Bank of Ireland revealed
new capital requirements of €24 billion, and led to the new government following up with plans to restructure
the industry including plans to merge AIB with EBS and to have 2 main banking pillars. The government also
changed their pre election stance on their intention to impose losses on bank senior bondholders, providing
some respite for financial institutions and investors that hold the debt. The total cost of the bank bailout to
date is estimated to be €70 billion.
European markets performed well during the quarter and despite the recent downgrades of debt in Ireland,
Portugal and Spain, equity markets in peripheral Europe out-performed the broader European index. Out-
performance was driven by the unexpected progress made by eurozone leaders in addressing the structure
of bailout mechanisms and repayment conditions of existing loans. Robust fourth-quarter earnings reports,
accommodative monetary policy and improving economic momentum drove strong performance by US equity
markets as well. Equity markets in Russia and Canada, whose economies are leveraged to higher energy
prices, also out-performed.
Japanese equities, which had been outperforming since early November on a weaker yen and an improving
economy, dropped dramatically in the days following the earthquake and tsunami. They finished the quarter
well behind the global benchmark.
As we moved into April the European Central Bank increased interest rates for the first time since July 2008
in response to an increase in eurozone inflation. The quarter percentage point interest rate hike was entirely
expected, and the focus has now shifted to discerning what the bank’s next move will be.
While some form of correction has been expected as markets have now increased by over 70% since the
trough of March 2009 conditions still seem relatively positive for equity markets. However, there are some
risks to this favourable environment including an escalation of Middle East tensions that forces oil prices
higher, a policy error by central banks in increasing interest rates too quickly, the end of quantitative easing
in June and its impact on the US economy and a hard economic landing in emerging economies.
In the Spotlight section of this issue we focus on the importance of dividends as a major component of stock
returns to long term investors. We highlight our successful Canada Life/ Setanta Dividend Fund which follows
a value investing philosophy and looks for companies paying above average dividends. The case for dividend
based investing is a strong one and dividend payouts are expected to increase this year as many companies
distribute more of their surplus cash from improving earnings.

Michael Hayes
Investment Development Manager

Warning: Past performance is not a reliable guide to future performance.
The value of your investment may go down as well as up.

Canada Life Assurance (Ireland) Limited and The Canada Life Assurance Company are regulated by the Central Bank of Ireland.
This quarterly publication is intended for Financial Advisors only.

Index

Market Commentary 4

Spotlight - The importance of dividends 6

Fund Fact Sheets 9
Life Investment Funds 9
Pension Funds 35

Fund Performance 62

Our Investment Partners 64

Market Commentary Q1 2011
Financial markets in the first quarter were buffeted by a couple of the destabilising ‘known unknowns’: the tragic natural
disaster in Japan and the wave of political unrest/change sweeping across the Arab world. These macro uncertainties
proved enough to all but stifle, but not significantly reverse, the strong flow into ‘risk’ assets such as equities which has
characterised investor behaviour for much of the last two years. The MSCI Developed World index returned -0.9% for the
quarter.
Fuelled by the exceptionally easy stance of official monetary policy, the surge in global stock markets since the trough of
March 2009 has now extended to 71% (in Euro terms).
While there has certainly been a strong economic and consequent earnings recovery over this period, some pause to reflect
on what this substantial rally in stock prices means for current valuation levels seems timely. After all, for value investors
such as us owning/buying the stock of a company with, for example, the MSCI World Equity Index at a price 1334.9 today
is a very different value proposition from owning/buying that stock at the trough price level of 697.5 in March 2009.
In broad terms, valuation is now somewhat above long-term ‘fair value’ – though still well below the extreme levels scaled
at the height of the technology boom in 2000 or prior to the great crash in 1929.
As stock prices rally, it is becoming more difficult to buy stocks at prices below our estimation of their intrinsic worth. I
hasten to add, that this should in no way be taken as suggesting that we are making any forecast on the direction of stock
prices more generally. We are merely highlighting that as we analyse our stock opportunities on a case by case basis to
arrive at a sensible appraisal of their value, the sharp appreciation of stock prices over the last two years is now making
value more difficult to find.
European Government bonds lagged most assets over the quarter. The BofA ML Sovereign 5Yr+ index returned
-1.4% during the quarter. Despite political upheaval in the Middle East & North Africa and the natural disasters in
Japan, investors continued to allocate to riskier assets. Consensus points to global growth remaining strong over
the year, with liquidity deemed ample and offering some comfort to investors. Within Europe, the sovereign debt
crisis continues. However, there are signs of some containment as Spanish and Italian bond spreads narrowed
to core Europe. Portugal is expected to enter a bailout scenario, with many hopeful this is the line in the sand.
Ireland continues to try and get a handle on the socialisation of the banking crisis, with some signs of foreign
sentiment changing towards our pariah status (S&P rating lowered, but now stable outlook).
The Euro strengthened by approx. 6% against the USD during the quarter, from 1.34 to 1.42.
The best performing region over the period (in euro terms) was MSCI Europe ex UK (+1.9%). Japanese equities fell
by approx. 15% when the Earthquake and Tsunami hit in mid March, and although stocks did recover, the return for
the quarter was still negative (-10.1%).
The best performing global industrial sector was clearly energy, unsurprising given the rising oil price. The weakest
sector over the quarter was consumer staples.
Brent Oil continued to rise during the quarter reaching $118/bbl by end March – the highest level since October
2008. Growth in manufacturing together with the cold weather in Europe and the US helped to increase demand
in 2010. However, political upheaval in North Africa and the Middle East drove the price above $100/bbl in 2011.
The DJ UBS Spot Commodity index rose by 5.1% during the last quarter, bringing the gains for the year to 17.0%

MSCI World Q1. 2011

Source: MSCI Net Total Returns (in €) 01.01.11 – 31.03.11

4

Asset Class Returns Q1. 2011
Global Equities Euro Bonds Property Euro Cash
%
3

2

1
0.3%
0

-1 -0.7%
-0.9%
-2 -1.4%

-3

Source: MSCI World, Merrill Lynch (EMU +5yrs), Average Property Fund Mercer
Survey, 3 Month Interbank Deposit (all in €) 01.01.11 – 31.03.11

Regional Returns Q1. 2011

%
15

10

5 1.9%
0.0% 0.6%
0

-5 -1.9%
-0.9% -2.9%
-10
-10.1%
-15

MSCI World UK Europe ex UK USA Japan Pacific ex Ireland
Index Japan

Source: MSCI Regional Indices Total Return, ISEQ, (in €), 01.01.11 – 31.03.11

Sector Returns Q1. 2011

%
9 7.6%
6

3

0
-1.2% -1.1% -0.7%
-3 -1.6%
-3.3% -3.2%
-6 -4.0%

-9
Financials Consumer Healthcare Consumer Information Industrials & Energy Telecoms /
Discretionary Staple Technology Materials Utilities

Source: MSCI Global Sector Performances Total Return (in €), 01.01.11 – 31.03.11

5

Spotlight - The importance of dividends
By Michael Hayes, Investment Development Manager, Canada Life

2010 was another good year for investors with many major markets recording significant gains to
Albert Einstein once said of compound interest that ‘It is the greatest mathematical discovery of all
time’. While the veracity of this statement has long been questioned there can be no doubt about
the importance of dividends as a percentage of overall equity returns. The same logic attributed to
compound interest also applies to the reinvestment of dividends.
In a recent research study ‘The quest for yield’ (2011) by Elroy Dimson, Paul Marsh and Roy Staunton
of the London Business School, the role of dividends is examined in some detail. In the study, $1
invested in 1900 in US equities grew in capital value to $217 by the end of 2010 for an annualised
gain of 5%. However, according to the study if dividends had been reinvested in US equities, $1 would
have been worth $21,766 or an annualised return of 9.4%. Thus, reinvesting income can lead to a
return 100 times larger than the return from capital gains alone. This is not specific just to the US but
is true for all equity markets researched in the study. The study also demonstrates that the longer the
investment horizon, the more important is dividend income as ‘for the seriously long term investor, the
value of a portfolio corresponds closely to the present value of dividends’.
As well as the importance of dividends as a percentage of overall return the study found that high
yielding stocks also out-performed lower yielding stocks. The study broke down data in respect of
US returns from 1927 into US stocks that rank each year in the highest or lowest yielding 30% of
dividend paying-companies, the middle 40% and stocks that pay no dividends at all. Non-dividend
paying stocks gave the lowest total return of 8.4% per year, while low-yield stocks returned 9.1% and
high yielders gave the best return at 11.2%.
The longest data timeline provided in the study of the yield effect was done in the UK and goes back
to 1900. In the study, the 100 largest UK stocks are ranked by their dividend yield and divided 50:50
into higher and lower yielding stocks. The capitalisation weighted returns on those two portfolios
are calculated over the following year and that process is repeated every year. The results show that
an investment of £1 in 1900 would have grown to £5,122 in the lower yielding strategy by the end
of 2010, an annualised return of 8%. However, the same initial investment allocated to high yield
stocks would have grown to £100,160 which is almost 20 times greater and equivalent to an annual
return of 10.9% per year. As before, the study found that same effect has been evident in every other
country reviewed except New Zealand which is a small market.
According to the study the same results applied when different countries were compared to each
other based on dividend yield. At the start of each year 19 countries were ranked by their dividend
yield at the old year end. The countries were assigned to quintiles each one made of four countries
with the middle quintile containing three markets. Each portfolio had an equal amount invested in
each country and all income was reinvested. Portfolios were held for one year and the 19 countries
were then re-ranked and the portfolios were rebalanced and this was repeated each year. The results
found that over the full 111 years from 1900 an investment of $1 in the lowest yielding countries
would have grown to $370 by the end of 2010, a return of 5.5%. But the same initial investment
allocated to the highest yielding countries vastly out-performed as it would have grown to an end 2010
value of more than $1 million, some 2700 times as much or a return of 13.4% per annum.
The study also looked at four sub-periods of 25 years each and the first 10 years of the 21st
century with high yielding stocks out-performing every time. While this strategy would have required
a disciplined rebalancing regime, it does highlight the yield effect. The study also found that higher
yielding strategies not only had higher returns but also at lower levels of risk.

6

The Canada Life/ Setanta Dividend Fund

The Canada Life/Setanta Dividend Fund is an actively managed equity portfolio which invests in
stocks that have paid above average dividends since 2003.
Setanta Asset Management Limited (‘Setanta’), Canada Life’s primary investment manager follows
a value investing philosophy. The Canada Life/ Setanta Dividend Fund (the ‘Fund’) distils this
philosophy, placing particular emphasis on the significant proportion of cumulative total return that
dividends typically represent.
High yield investment fits neatly with Setanta’s value philosophy for a number of reasons. A high
dividend yield is generally considered to be a classical indicator of value and typically corresponds
to other respected value metrics. That said, a high dividend yield alone is not enough for a stock to
merit consideration for investment. In addition the stock must trade below Setanta’s assessment of
intrinsic value and the company will ideally exhibit strong competitive advantages. Setanta believes
that a strong balance sheet, a central tenet of value investing, is important for a company that aspires
to pay a sustainable and upwardly-trending dividend. Cash flow should closely reflect accounting
earnings, indicating that profits are real and not reflective of an accountant’s vivid imagination. Robust
cash flows typically ensure that a dividend is well covered and a company’s payout viable. These
factors help to protect an investment during the difficult times a company inevitably encounters,
through an economic cycle. They also ensure that the Fund, in accordance with value investing
principles, emphasises a high probability of long-term capital preservation.
Setanta takes a common sense approach to risk so that investment decisions are based on the
characteristics of each stock. By design, the Fund is well diversified, holding 45 stocks across
nineteen countries and five continents. Stocks are currently drawn from ten broad economic sectors,
while no stock has a greater weight than 5% of the fund.
Sector concentration is a function of the value opportunities available, subject to reasonable
diversification. Although subject to change, the largest sector is telecoms which currently represents
15% of the fund. Upon investment the fund managers typically expect to hold a stock for 4-5 years,
but are not bound to a maximum holding period. Setanta pays no heed to classical ‘risk’ metrics and
agree with Warren Buffett, who said: “The risk that matters is not beta or volatility, but the possibility
of loss or injury from an investment.”
The rationale for dividend based investing is clear and dividend payouts are expected to increase this
year as many companies distribute more of their surplus cash from improved earnings.
Dividends have historically contributed the majority of overall returns and to date there is no historical
evidence that this will change in the future. Dividends are the foundations on which long term equity
returns are built.

For more information on Canada Life’s fund performance, please visit www.canadalife.ie

Warning: The value of your investment may go down as well as up.
Past performance is not a reliable guide to future performance.
The Canada Life Assurance Company and Canada Life Assurance (Ireland) Limited are regulated by the Central Bank of Ireland.

This article does not constitute advice or an advertisement and does not form part of any contract.

7

Canada Life / Setanta Equity Dividend Fund Quarter 1, 2011

Fund Description

The Equity Dividend Fund is an actively managed equity company debt must be ‘investment grade‘ (if rated)
portfolio which aims to hold c. 40 stocks that pay above company gearing below 100%.
average dividends. The fund does not target high dividend
payers indiscriminately; a set of desired criteria is applied The ratio of debt to equity should be not more than 100%,
when filtering potential candidates for the fund. The desired except for utility companies (water, electricity etc.) where
criteria are: we use a hurdle of 200%, and for financial stocks, where no
maximum is applied.
dividend yield 20% in excess of the MSCI World Index
no cut in dividend in the last five years The maximum exposure to currencies other than the euro is
market capitalisation of at least 500m (excluding Irish capped at 10% of the value of the fund. The Equity Dividend
stocks) Fund is managed by Setanta Asset Management Limited
dividend must be less than 80% of earnings (“Setanta“) .

Top 10 Holdings Fund Performance* Q1 2011
Q1 2011 1 yr p.a 3 yr p.a 5 yr p.a 10 yr p.a
Company Sector %
15
CRH Industrials / Materials 3.6
12
Sanofi-Aventis Healthcare 3.5
Fortum Telecoms / Utilities 3.1 9

Lockheed Martin Industrials / Materials 2.8 6
Solvay Industrials / Materials 2.6
3
DCC Industrials / Materials 2.5
Wincor Nixdorf Information Technology 2.5 0

Svenska Handbkn Financials 2.5 -3
Sasol Energy 2.4 CL/Setanta Equity Dividend
-6
Thai Beverage Public Consumer Staples 2.4 Average of High Yield Funds Peer Group

Portfolio Financials Q1 2011
*Source: Moneymate. Peer Group Average (High Yield Equity Funds from Bloxhams, AIB, Eagle
Dividend Yield 3.8% Star, Aviva and Friends First.

P/E Ratio 11.8x
Source: Bloomberg & individual company reports. These figures are based on last years dividend in some cases.
The gross yield is before any withholding taxes on the individual shares. It is also before taking account of any exit tax that may apply.

Asset Distribution Equity Geographic Distribution Equity Sectoral Distribution

Consumer
Cash Japan Ireland Discretionary
Telecoms/Utilities 6.6%
6.8% Pacific & Emerging 4.4% 6.5% Consumer
18.4%
Markets Staples
11.5% UK 10.9%
19.1%
Equity Information
94.3% Energy
Technology
11.1%
6.3%

Industrials
USA & Materials Financials
Europe
20.0% 18.6% 14.2%
38.5%
Healthcare
13.8%


Important Information:
This fact sheet does not form part of any contract. The information contained in this document is based on current legislation and is, therefore, subject to change.
The contents are intended as a guideline only and should not be construed as an interpretation of the law. For full details of all our products, please refer to the
specific product policy conditions. You should always seek advice of an appropriately qualified professional. Setanta Asset Management Limited is regulated by the
Central Bank of Ireland. Canada Life Assurance (Ireland) Limited is regulated by the Central Bank of Ireland.
10

Canada Life / Setanta Balanced Fund Quarter 1, 2011

Fund Description

The investment objective of the Balanced Fund is to secure picked within a global sector framework, with an emphasis
long-term capital growth. The fund seeks to achieve its on the following key characteristics:
objective by investing primarily in a range of Irish and
international equities and bonds. The asset distribution of superior financial track record
this fund is more conservative than a managed fund, having competitive advantage and a sustainable business model
a lower proportion of its assets invested in equities; the within their industry
target equity content is less than 50%. focused on profitability and can demonstrate an ability to
earn cash flow returns in excess of their cost of capital
The fund is managed by Setanta Asset Management Limited over the business cycle
(“Setanta“). Setanta is a value investor in quality companies do not carry excessive debt levels.
and builds the portfolio from the bottom up. Stocks are

Top 10 Holdings Fund Performance to 31/03/11
Company Sector % %

Exxon Mobil Energy 2.4 6

5
Pfizer Healthcare 2.0
4
General Dynamics Industrials & Materials 2.0
3
CRH Industrials & Materials 2.0
2
Total Energy 1.9
1
Johnson & Johnson Healthcare 1.7 0
ENI Energy 1.7 -1

Owens Illinois New Industrials & Materials 1.7 -2

BP Energy 1.7 -3

DCC Industrials & Materials 1.7 -4

Canada Life/Setanta Balanced

Category Average Managed Balanced

Source: Moneymate. Performance is net of management fees.

Asset Distribution Equity Geographic Distribution Equity Sectoral Asset Distribution

Telecoms/Utilities Consumer
Cash Japan Ireland 7.9% Discretionary
0.6% Property Pacific & Emerging 6.1% 5.8% UK 9.9%
7.4% 10.2% Information
Markets Consumer
7.6% Technology Staples
12.4% 10.9%

Equity
47.2% Europe
21.0% Industrials Energy
& Materials 15.5%
Fixed Interest 16.6%
44.7%
USA
49.4%
Healthcare Financials
12.8% 14.1%


11

Canada Life / Setanta Balanced Dividend Fund Quarter 1, 2011

Fund Description

The Balanced Dividend Fund is an actively managed balanced dividend must be less than 80% of earnings
fund investing 66% in equities and 34% in fixed interest company debt must be ‘investment grade‘ (if rated)
securities. The equity portion of the fund aims to hold c. 40 company gearing below 100%.
stocks that pay above average dividends. The fixed interest
portion of the fund invests in EU government bonds. The ratio of debt to equity should be not more than 100%,
except for utility companies (water, electricity etc.) where
The fund does not target high dividend payers indiscriminately we use a hurdle of 200%, and for financials stock, where no
for the equity securities; a set of desired criteria is applied maximum is applied.
when filtering potential candidates for the fund. The desired
criteria are: The maximum exposure to currencies other than the euro
is capped at 10% of the value of the fund. The Balanced
dividend yield 20% in excess of the MSCI World Index Dividend Fund is managed by Setanta Asset Management
no cut in dividend in the last 5 years Limited (“Setanta“) .
market capitalisation of at least 500m (excluding Irish stocks)

Top 10 Holdings Fund Performance* Q1 2011
% Q1 2011 1 yr p.a 3 yr p.a 5 yr p.a 10 yr p.a
Company Sector %
10
CRH Industrials / Materials 3.6
Sanofi-Aventis Healthcare 3.5 8

Fortum Telecoms / Utilities 3.1 6
Lockheed Martin Industrials / Materials 2.8
4
Solvay Industrials / Materials 2.6
2
DCC Industrials / Materials 2.5
Wincor Nixdorf Information Technology 2.5 0

Svenska Handbkn Financials 2.5
-2
Sasol Energy 2.4
-4
Thai Beverage Public Consumer Staples 2.4 CL/Setanta Bal Dividend

Category Average Managed Balanced

Portfolio Financials Q1 2011
*Source: Moneymate. Peer Group Average (High Yield Equity Funds from Bloxhams, AIB, Eagle
Dividend Yield 3.8% Star, Aviva and Friends First.
Source: Bloomberg & individual company reports. These figures are based on last years dividend
P/E Ratio 11.8x in some cases. The gross yield is before any withholding taxes on the individual shares. It is also
before taking account of any exit tax that may apply.


Consumer
Japan Ireland Discretionary
Pacific & Emerging 4.4% Telecoms/Utilities 6.6%
6.5%
Markets 18.4% Consumer
11.5% Staples
UK 10.9%
19.1%
Information
Energy
Technology
11.1%
6.3%

Industrials
Europe USA & Materials Financials
38.5% 20.0% 18.6% 14.2%
Healthcare
13.8%


12

Canada Life / Setanta European Equity Fund Quarter 1, 2011

Fund Description

The investment objective of the European Equity Fund is to superior financial track record
secure long-term capital growth. competitive advantage and a sustainable business model
within their industry
The fund seeks to achieve its objective by investing in a focused on profitability and can demonstrate an ability to
range of European equities. earn cash flow returns in excess of their cost of capital
over the business cycle
It is an actively managed equity portfolio which holds c. 30- do not carry excessive debt levels.
50 European stocks. The fund is managed by Setanta Asset
Management Limited (“Setanta“). Setanta is a value investor
in quality companies and builds the portfolio from the bottom
up. Stocks are picked within a global sector framework, with
an emphasis on the following key characteristics:

Company Sector % %

DCC Industrials/Materials 4.9 20

BP Energy 4.4
15
C&C Group Consumer Staples 4.4
CRH Industrials/Materials 4.2
10
Solvay Industrials/Materials 4.0
Axel Springer Consumer Discretionary 3.9 5
Vodafone Telecoms / Utilities 3.9
Wincor Nixdorf Information/Technology 3.8 0

Diageo Consumer Staples 3.8
Total Energy 3.8 -5

Canada Life/Setanta European Equity

Category Average Advanced Europe Equity



Cash Consumer
Cash Telecoms/
1.7% Greece 2.0% Belgium Utilities Discretionary
3.0% 7.0% Czech Republic 10.0%
15.9% Consumer
3.0%
Staples
Finland
Information 8.3%
UK 9.0%
Technology
27.0% 6.0%
France
8.0% Energy
13.4%
Germany
Norway Industrials
8.0%
3.0% & Materials
Switzerland 16.8%
6.0% Italy Ireland Financials
Equity 6.0% 18.0% Healthcare 18.9%
98.3% 10.6%


13

Canada Life / Setanta Unitised With Profits Fund Quarter 1, 2011

Fund Description

The Unitised With Profits Fund (UWP) operates like a At maturity a terminal bonus may be applied if the underlying
unit-linked fund, except that investment return to assets have outperformed the declared bonuses.
policyholders is smoothed and guaranteed not to fall.

Returns are distributed in the form of a bonus rate declared
by Canada Life based on various factors including the
performance of the underlying assets.

Returns are smoothed to the investor in that the bonus
rate will endeavour to reflect the performance of the assets
over the long term, allowing the investor to avoid short-term
volatility in the markets.

Top 10 Holdings Annual Bonus History

Company Sector % Year Life

Gross Version Net Version
Exxon Mobil Energy 2.4
95 – 96 - -
Pfizer Healthcare 2.1
96 – 97 - -
General Dynamics Industrials & Materials 2.0 97 – 98 - -

CRH Industrials & Materials 1.9 98 – 99 - 6.5%

Total Energy 1.9 99 – 00 - 6.0%

00 – 01 6.0% 5.0%
ENI Energy 1.8
01 – 02 6.0% 4.5%
Johnson & Johnson Healthcare 1.8
02 – 03 5.0% 3.5%
BP Energy 1.8 03 – 04 2.0% 0.0%

Owens Illinois New Industrials & Materials 1.7 04 – 05 1.0% 0.0%

DCC Industrials & Materials 1.7 05 – 06 1.0% 0.0%

06 – 07 1.0% 0.0%

07 - 08 1.0% 0.0%

08 - 09 0.5% 0.0%

09 - 10 0.0% 0.0%

10 - 11 0.0% 0.0%

Bonus rates are declared net of management charges


Japan Telecoms/Utilities Consumer
Property Ireland Discretionary
Cash 6.0% 7.9%
2.0% Pacific & Emerging 5.8% 9.9%
6.2% UK
Markets 10.3% Information Consumer
12.1% 11.0%

Equity Europe
36.9% Fixed Interest
20.4% Industrials
54.9% Energy
& Materials
15.8%
16.4%

USA
Healthcare
48.9% Financials
12.6%
14.3%


14

Canada Life / Setanta Focus 15 Fund Quarter 1, 2011

Fund Description

The Focus 15 Fund is an actively managed, concentrated focused on profitability and can demonstrate an ability to
equity portfolio, which holds c. 15 international (ex Ireland) earn cash flow returns in excess of their cost of capital
stocks. The Focus 15 Fund is managed by Setanta Asset over the business cycle
Management Limited (“Setanta“). Setanta is a value do not carry excessive debt levels.
investor in quality companies. Setanta builds the portfolio
from the bottom up, using the stocks researched by the Clearly, Focus 15 is likely to be more volatile than more
sector specialists, with an emphasis on the following key broadly-based funds; it is therefore only suitable for those
characteristics: investors with experience of the stock market.

superior financial track record
competitive advantage and a sustainable business model

Fund Holdings Fund Performance to 31/03/11
Company Sector % % Q1 2011 1 yr p.a 3 yr p.a 5 yr p.a 10 yr p.a

Pfizer Healthcare 9.0 15
Sysco Consumer Staples 8.2
12
Everest Re Group Financials 7.7

Tidewater Energy 7.0 9
Steris Healthcare 7.0
6

Total Energy 6.8 3
MI Developments Financials 6.8
0
Astellas Pharmaceutical Healthcare 6.7

Wincor Nixdorf Information Technology 6.6 -3

NTT Docomo Telecoms / Utilities 6.1
-6
Motor Consumer Discretionary 5.9

Belgacom Telecoms / Utilities 4.0

Nokia Information Technology 3.1 Canada Life/Setanta Focus 15

OPAP Consumer Discretionary 2.1 Category Average Flexible Equity

Komori Industrials & materials 1.8
Cash 4.3


Cash Consumer
4.3% Telecoms/Utilities Discretionary
Japan 10.7% 8.5%
21.5% Consumer
Information Staples
Technology 8.6%
10.1%

Pacific Industrials
USA
& Emerging & Materials Energy
46.7%
Markets 1.9% 14.4%
8.0%

Europe Healthcare
23.7% 30.8% Financials
Equity 15.1%
95.7%


15

Canada Life / Setanta Irish Equity Fund Quarter 1, 2011

Fund Description

The Irish Equity Fund is an actively managed equity focused on profitability and can demonstrate an ability to
portfolio which aims to hold stocks quoted on the Irish earn cash flow returns in excess of their cost of capital
stock exchange. The fund is managed by Setanta Asset over the business cycle
Management Limited (“Setanta“). Setanta is a value investor do not carry excessive debt levels.
in quality companies. Setanta builds the portfolio from the
bottom up, picking stocks within a sector framework, with an The Irish Equity Fund is a relatively concentrated equity fund
emphasis on the following key characteristics: with exposure to stocks from only one country and is likely to
be more volatile than more broadly-based funds.
superior financial track record
competitive advantage and a sustainable business model

Company Sector % %

DCC Industrials & Materials 9.3 20

Total Produce Consumer Staples 8.8 15

Irish Continental Industrials & Materials 8.3 10

Kingspan Industrials & Materials 7.8 5

CRH Industrials & Materials 7.4 0

Abbey Industrials & Materials 7.3 -5

Dragon Oil Energy 6.3 -10

Grafton Group Industrials & Materials 6.2 -15

-20
Kerry Group Consumer Staples 6.2
-25
Ryanair Holdings Industrials & Materials 6.2

Canada Life/Setanta Irish Equity

Category Average Irish Equity



Consumer
Cash Discretionary
0.1% 5.8%

Consumer
Staples
25.3%

Industrials
& Materials
57.5% Energy
6.3%
Financials
1.1%
Healthcare
Equity
4.0%
99.9%


16

Canada Life / Setanta Property Fund Quarter 1, 2011

Fund Description

This fund invests in commercial properties - ofﬁce, retail and The Property Fund is suitable for investors who wish to gain
warehousing. The fund is characterised by the quality of the investment exposure to the commercial property sector.
property that makes up the portfolio and the tenants that Investors should understand that property investment is by
occupy these properties. its nature less liquid than other asset classes.

Currently, all of the properties are located in Ireland.

Sample Property Holdings Fund Performance to 31/03/11
OFFICE %

Block C, Earlsfort Centre 15

Tenant - Ofﬁce of Public Works 10

Fund Weighting - 13.2% 5

RETAIL 0

45/46 Patrick Street, Cork -5
Tenant - C&J Clarke International
-10
Fund Weighting - 3.8%
-15
INDUSTRIAL/WAREHOUSE
-20
Swords Business Campus
-25
Tenants - Air France, Client Logic, Eastern Health Board
Fund Weighting - 10.2%
Canada Life/Setanta Property

Category Average Property


Asset Distribution Geographic Distribution Sectoral Distribution

Cash
9.5% Rest of Ireland
16.5%
Office
27.7%
Retail
Dublin city centre 41.7%
Cork
44.4%
10.3%

Cash & Bonds
9.5%

Property Suburban Dublin Industrial
90.5% 28.8% 21.1%


17

Canada Life / Setanta Strategic Growth Fund Quarter 1, 2011

Fund Description

The investment objective of the Strategic Growth Fund is to superior financial track record
secure long-term capital growth. The fund seeks to achieve competitive advantage and a sustainable business model
its objective by investing primarily in a range of Irish and within their industry
international equities and bonds. The fund will hold between focused on profitability and can demonstrate an ability to
50-80% of its assets in equities with the balance consisting earn cash flow returns in excess of their cost of capital
of bonds, property and cash over the business cycle
do not carry excessive debt levels.
The fund is managed by Setanta Asset Management Limited
(“Setanta“). Setanta is a value investor in quality companies.
Setanta builds the portfolio from the bottom up, picking
stocks within a global sector framework, with an emphasis
on the following key characteristics:

Company Sector % %


CRH Industrials & Materials 1.5 5

DCC Industrials & Materials 1.4 4

Total Energy 1.4
2
1
ENI Energy 1.2
0
-1
BP Energy 1.2
Owens Illinois Industrials & Materials 1.1 -2

-3

Canada Life/Setanta Strategic Growth G

Category Average Managed Dynamic



Japan Telecoms/Utilities Consumer
Cash Property 6.0% Ireland 7.6% Discretionary
Pacific & Emerging
6.4% 2.8% Markets 9.2% Information 9.7%
Commodities Fixed Interest Consumer
7.9% UK Technology
2.4% 19.4% Staples
9.9% 11.6%
11.3%
Europe
19.9%
Industrials
Energy
& Materials
15.7%
18.3%

Equity
69.0%
Healthcare Financials
USA 12.4% 13.5%
47.1%


18

Canada Life / Setanta Global Opportunity Fund Quarter 1, 2011

Fund Description

The Global Opportunity Fund is an actively managed equity superior financial track record
portfolio, which holds c. 100-140 global stocks. The competitive advantage and a sustainable business model
investment objective of the Global Opportunity Fund is to within their industry
secure long-term capital growth by investing in a range of focused on profitability and can demonstrate an ability to
Irish and international equities. earn cash flow returns in excess of their cost of capital
over the business cycle
The fund is managed by Setanta Asset Management Limited do not carry excessive debt levels.
(“Setanta“). The fund is the cornerstone of Setanta‘s
investment process. Setanta is a value investor in quality
companies and builds the portfolio from the bottom up.
Stocks are picked within a global sector framework, with an
emphasis on the following key characteristics:

Company Sector % %


6
CRH Industrials & Materials 1.9
4
Total Energy 1.9
Johnson & Johnson Healthcare 1.8 2

ENI Energy 1.7 0
Owens Illinois Industrials & Materials 1.7
-2
BP Energy 1.7
DCC Industrials & Materials 1.7 -4

Canada Life/Setanta Global Opportunity

Category Average Flexible Equity



Cash Japan Ireland Telecoms/Utilities Consumer
1.3% 7.9% Discretionary
Pacific & Emerging 6.1% 5.8% UK 9.9%
Markets 10.2% Information Consumer
12.4% 10.9%

Europe
21.0% Energy
Industrials
& Materials 15.5%
16.6%
USA
49.4%
Equity Healthcare Financials
98.7% 12.8% 14.1%


19

Investment Edge Quarter 1 2011

Investment Edge Quarter 1 2011

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