Investment Edge Q4 2010

Investment Edge
Volume 3 Quarter 4 2010

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 fourth quarter 2010 edition of Investment Edge. The fourth quarter was a
very positive one as the MSCI World Index rose 10.9%, and despite a number of challenges
during 2010, posted a very healthy return of 19.5% in euro terms for the year.

The main issue weighing on markets throughout the year was the euro sovereign debt
crisis, which eventually led to a bailout of Greece and later Ireland, and worries over other
peripheral euro countries’ debt levels. In the first half of the year there were ongoing
concerns about the possibility of a double dip recession and the effect of increased
regulation in the US and elsewhere of the financial sector. The second half of the year saw fundamentals
reassert themselves as better-than-expected economic data, along with improving corporate earnings,
drove markets on.

Despite the ongoing weakness of Irish bank shares, the ISEQ almost recorded a positive return for the
year and rallied strongly in the fourth quarter as its non-financial stocks participated in the global rally.
Meanwhile, the price of oil rose above US$90 per barrel for the first time in over two years and other
commodity prices continued to push higher.

The strong final quarter was mainly attributable to heightened expectations amidst increased confidence
that the global recovery was well on track and improving corporate profitability that reached record levels. At
home the final quarter was dominated by turmoil on the political front and once again in the financial sector,
as AIB, which had been the biggest stock in the ISEQ just three years ago, was effectively nationalised. In
November the EU and IMF jointly agreed to an Irish bailout of õ67.5 billion. Also during the month a four-year
national recovery plan to return the Irish economy to sustainable growth was announced with the intention
of cutting our budget deficit to the official target of 3% of GDP by 2014.

The mid-term elections in the US delivered a resounding victory for the Republicans. The extension of the
Bush-era tax cuts by President Obama and further quantitative easing would later act as another stimulus
for the US economy. Market gains in December were among the strongest of the year. The US S&P 500
Index rose to its highest level in over two years and the FTSE 100 Index closed above 6,000 for the first
time since June 2008.

As we look to 2011 many of the same themes will remain centre stage. The eurozone sovereign debt crisis is
likely to remain a major influence in 2011 as markets seem unconvinced that these issues have been solved.
Global growth is again expected to be positive at about 4.2%, fed in large parts by the emerging markets.

Interest rate policy will likely remain relaxed in most parts of the world with the expectation that interest
rates will remain at, or near, historic lows. However, rates may come under pressure in the latter stages
of 2011 if growth continues as expected. Equities still look attractive and remain reasonably valued,
particularly in relation to bonds and deposit rates. Corporate profits are expected to continue their advance,
albeit at lower levels of growth than in 2010. We may also see an increase in dividend payouts this year as
companies put their surplus cash to work.

In the Spotlight section of this issue we focus on the outstanding long-term performance from some of
Canada Life/Setanta’s main funds.

We wish you all the best for 2011.

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 - Canada Life fund performance outperforms the markets in 2010 6

Fund Fact Sheets 9
Life Investment Funds 9
Pension Funds 35

Fund Performance 62

Our Investment Partners 64

Market Commentary Q4 2010
Global equities ended the year on a very positive note with the MSCI World Index returning +10.9% for quarter four,
bringing the return for 2010 to +19.5%. The best performing sectors for the quarter were energy and industrials &
materials and the weakest were healthcare and utilities.

Japan (Nikkei) and the US (S&P500) had very strong quarters, up 14.1% and 12.8% respectively. Investors shrugged
off European sovereign debt concerns and higher unemployment figures and instead focused on a historic trend price/
earnings ratio of 19 times and GDP growth. Following two very positive years, equities look reasonably valued at current
levels. US equity markets also received a boost from the extension of tax breaks originally introduced by President Bush
for two years. This measure resulted in a rise in economic growth forecasts for 2011, but also in a rise in US government
bond yields on the expectation that borrowing will need to increase. The UK and the US continued with their programmes of
quantitative easing during the quarter. Policymakers seem broadly determined to continue to support economic recovery
via this exceptionally easy monetary policy approach for the foreseeable future, or until inflation becomes an inhibiting
factor. Equities were also buoyed by strong global growth - double digit growth was recorded in Asia.

European equities (Europe ex-UK), generated a positive quarterly return for the first time in 2010 (+5.6%). European
equities have been held back by concerns about debt levels on the balance sheets of some European banks and of
peripheral European countries. Stock prices in Germany were strong for the quarter and for the year, reflecting strong
German economic growth. The ISEQ index returned 8% for the quarter.

In a further effort to curb inflation, which is being driven primarily by rising food prices, the People’s Bank of China
announced an interest rate hike of 0.25% on Christmas Day. Equity markets are beginning to tune into inflationary
pressures in China and global inflation will become a focus point for equity investors in 2011, along with corporate
earnings, dividend policy and monetary policy.

European bonds had a negative quarter; the Bank of America Merrill Lynch sovereign bond five-year index returned -
5.7%. The European sovereign debt crisis was centre stage during the quarter and peripheral (Ireland, Greece, Portugal,
Spain) bond yields continued to rise as the ongoing political debate about how best to contain and solve the crisis
dragged on. Uncertainty over European sovereign debt will likely continue to impact equity and bonds over the medium
term, until a comprehensive eurozone response is accepted by the markets. European corporate bonds fared better
during the quarter, down -1.7%, and returning +6% for 2010 as a whole (Merrill Lynch EMU Corporate bond index).

Cash generated a low yield, reflecting the current low interest rate environment. The European Central Bank (ECB) left its
main refinancing rate (refi) at 1% in line with market expectations. This is expected to remain unchanged during 2011.

The euro weakened against the US dollar and sterling during the quarter by -1.9% and -1.0%, respectively. In overall
terms, the euro fell by 8% against the US dollar during 2010, despite having strengthened against the US dollar for the
first half of the year.

Brent oil rose again during the quarter and reached its highest level of $94.3/barrel since October 1st 2008 when it
then peaked at $94.9/barrel. Growth in manufacturing together with the cold weather in Europe and the US helped to
increase demand. The Dow Jones UBS Spot Commodity Index rose by 18.9% during the quarter, bringing the gains for
the year to 26.4%.

MSCI World Q4. 2010

Source: MSCI Net Total Returns (in €) 01.10.2010 – 31.12.2010

4

Asset Class Returns Q4. 2010

Source: MSCI World, Merrill Lynch (G7), Merrill Lynch (EMU +5yrs), Average Property
Fund Mercer Survey, 3 Month Interbank Deposit (all in €) 01.10.10 – 31.12.10

Regional Returns Q4. 2010

Source: MSCI Regional Indices Total Return, ISEQ, (in €), 01.10.10 - 31.12.10

Sector Returns Q4. 2010

Source: MSCI Global Sector Performances Total Return (in €), 01.10.10 – 31.12.10

5

Canada Life fund performance outperforms
the markets in 2010
By Michael Hayes, Investment Development Manager, Canada Life

2010 was another good year for investors with many major markets recording significant gains to
build on the very positive returns seen in 2009. Recent performance figures show that several of
Canada Life’s investment funds outperformed their respective benchmarks in 2010 and over longer
periods*.

While the 2010 performance figures are very welcome, the more relevant longer-term numbers
are also very strong with several of our key funds showing significant outperformance against their
relevant benchmarks and competitor funds. The Canada Life/Setanta Global Equity Fund, the Canada
Life/Setanta Focus 15 Fund, the Canada Life/Setanta Irish Equity Fund and the Canada Life/Setanta
Managed Fund have all outperformed their respective benchmarks over the more relevant three, five
and 10-year periods.

Setanta has a strong conviction in value and quality investing, coupled with a diligent investment
process. They also conduct their own fundamental research. This generates an in-depth
understanding of the companies and the sectors in which they operate, benefiting investors in the
Canada Life/Setanta Funds.

The standout performer in 2010, as was the case in 2009, was the Canada Life/Setanta Focus 15
Fund. The fund increased by 26.5% last year, outperforming its benchmark, the MSCI World Index,
by 7%. The fund is an actively managed, concentrated equity portfolio, which holds approximately 15
international stocks. The Canada Life/Setanta Focus 15 fund has been one of the best-performing
funds in the Irish market over the last two years.

With industry single premium sales increasing by 30% in 2010, it is encouraging to note that people
are moving back into investment funds and away from cash and deposits. We have now had two good
years in a row, and this has certainly helped investor confidence. Some funds are showing gains of
over 100% for the past two years. The positive trend into other asset classes that started in 2009
has gathered momentum, and we are delighted to see that it looks set to continue in 2011.

Canada Life is the strongest life assurance group in Ireland. Established in Ireland in 1903, the
Canada Life Group has grown to be a modern and dynamic international financial services business.
We are part of Great-West Life, one of the world’s leading life assurance companies, from a country
ranked the most financially sound in the world**.

With a reputation for financial strength, stability and consistently high financial ratings from the
independent rating agencies, Canada Life is the only life assurance group in Ireland to have a AA
rating*** from Standard & Poor’s.

As part of the Great-West Life Assurance Company, we have access to a large pool of experience and
expertise on a global scale, allowing us to continuously enhance our product and service offering.

6

5-yr Fund
Outperformance 10-yr Fund Outperformance
Canada Life Fund Benchmark Performance per
vs benchmark Performance vs. benchmark
annum (p.a.)

Canada Life/
Setanta Global MSCI World Index +0.9% p.a. +1.1% p.a. +0.7% p.a. +1.9% p.a.
Equity Fund

Canada Life/
Setanta Focus 15 MSCI World Index +5.4% p.a. +5.6% p.a. -0.7% p.a. +0.5% p.a.
Fund

Canada Life/
Setanta Irish ISEQ**** -5.6% p.a. +9.3% p.a. 1.2% p.a. 5.5% p.a.
Equity Fund

Canada Life/
Mercer Managed
Setanta Pension +0.4% p.a. +1.2% p.a. +1.7% p.a 0.7% p.a.
Fund Average
Managed Fund

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.

Canada Life Assurance (Ireland) Limited and The Canada Life Assurance Company 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.

* Performance Source: Pension Fund performance, Moneymate, Mercer Pooled Group Pension Managed Fund Survey. Fund
performance for the calendar year 2010. These performance figures are net of management fees. The figures for the Canada
Life/ Setanta Irish Equity Fund are for the life version of this fund and are also net of management fees.

** IMF Country Report for Canada, 2009

*** 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.

**** The Canada Life/Setanta Irish Equity Fund is an actively managed fund investing in Irish equities. The fund is a stock
picking fund and does not attempt to replicate the performance of the ISEQ benchmark.

7

Canada Life / Setanta Equity Dividend Fund Quarter 4, 2010

Fund Description P

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* Q4 2010

Company Sector %
BP Energy 3.7 13.5

CRH Industrials/Materials 3.5 11.2

Sanofi-Aventis Healthcare 3.4
7.5
Fortum Telecoms/Utilities 3.0 6.4
4.4 4.4
Wincor Nixdorf Information Technology 2.7
Diageo Consumer Staples 2.6
0.0
Lockheed Martin Industrials/Materials 2.6
-0.1
Svenska Handbanken Financials 2.6
-2.3
Thai Beverage Public Consumer Staples 2.5 -3.8
Nokia Information Technology 2.5

Portfolio Financials Q4 2010
*Source: Moneymate. Peer Group Average (High Yield Equity Funds from Bloxhams, AIB, Eagle
Star, Aviva and Friends First.
Dividend Yield 3.8%
P/E Ratio 12.9x
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


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 4, 2010

Fund Description P

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 31/12/10

Company Sector %
5.8
Exxon Mobil Energy 2.3 5.1
General Dynamics Industrials/Materials 2.0
Johnson & Johnson Healthcare 1.8
Pfizer Healthcare 1.8 1.7
1.1
BP Energy 1.7 0.7 0.6
Total Energy 1.7
Microsoft Information Technology 1.7 -0.3

SCA ‘B’ Industrials/Materials 1.7 -1.9
-1.6

Everest RE GP Financials 1.5
-3.5
Danaher Industrials/Materials 1.5

Source: Moneymate. Performance is net of management fees.

Asset Distribution Equity Geographic Distribution Equity Sectoral Asset Distribution


11

Canada Life / Setanta Balanced Dividend Fund Quarter 4, 2010

Fund Description P

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* Q4 2010

Company Sector %
BP Energy 3.7 13.0
CRH Industrials/Materials 3.5
Sanofi-Aventis Healthcare 3.4
7.1 7.7
Fortum Telecoms/Utilities 3.0
Wincor Nixdorf Information Technology 2.7 4.4 4.5
3.9
Diageo Consumer Staples 2.6 1.0 1.6
0.4
Lockheed Martin Industrials/Materials 2.6
Svenska Handbanken Financials 2.6
Thai Beverage Public Consumer Staples 2.5 -3.2

*Source: Moneymate. Peer Group Average (High Yield Equity Funds from Bloxhams, AIB, Eagle
Star, Aviva and Friends First.
Portfolio Financials Q4 2010
Dividend Yield 3.8%
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
P/E Ratio 12.9x before taking account of any exit tax that may apply.



12

Canada Life / Setanta European Equity Fund Quarter 4, 2010

Fund Description P

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 %
BP Energy 4.9
Axel Springer Consumer Discretionary 4.3 15.3
Diageo Consumer Staples 4.0
9.0
Kingspan Group Industrials/Materials 3.9 7.8
6.9
Novartis Healthcare 3.8
Vodafone Telecoms/Utilities 3.8 0.9
DCC Industrials/Materials 3.7
-0.9 -1.0 -0.6
Glaxosmithkline Healthcare 3.7
-2.8
Sanofi-Aventis Healthcare 3.6 -4.5




13

Canada Life / Setanta Unitised With Profits Fund Quarter 4, 2010

Fund Description P

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 2.2
95 – 96 - -
General Dynamics Industrials/Materials 2.0 96 – 97 - -

Johnson & Johnson Healthcare 1.8 97 – 98 - -

Pfizer Healthcare 1.7 98 – 99 - 6.5%

99 – 00 - 6.0%
BP Energy 1.6
00 – 01 6.0% 5.0%
SCA ‘B’ Industrials/Materials 1.6
01 – 02 6.0% 4.5%
Total Energy 1.6 02 – 03 5.0% 3.5%

Microsoft Information Technology 1.6 03 – 04 2.0% 0.0%

04 – 05 1.0% 0.0%
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



14

Canada Life / Setanta Focus 15 Fund Quarter 4, 2010

Fund Description P

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 31/12/10
Company Sector %

MI Developments Financials 9.1

Tidewater Energy 8.1


Astellas Pharmaceutical Healthcare 7.2

Wincor Nixdorf Information Technology 6.9 12.9 13.3

Steris Healthcare 6.6
7.7
NTT Docomo Telecoms/Utilities 6.4 5.3 4.4

Total Energy 6.2

Toyota Motor Consumer Discretionary 6.1 -1.8 -1.7 -1.5
-4.0
Sysco Consumer Staples 5.8


OPAP Consumer Discretionary 3.9

Belgacom Telecoms/Utilities 3.7

Cash 4.7



15

Canada Life / Setanta Irish Equity Fund Quarter 4, 2010

Fund Description P

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 9.7 18.6


Kingspan Industrials/Materials 9.1 7.9

Dragon Oil Energy 7.8 1.2
Irish Continental Industrials/Materials 7.6
-0.7
Total Produce Consumer Staples 7.6 -5.6 -4.5
Abbey Industrials/Materials 7.0 -10.8
Ryanair Industrials/Materials 6.8 -15.4
Kerry Group Consumer Staples 6.3
-22.1
Grafton Group Industrials/Materials 6.3




16

Canada Life / Setanta Property Fund Quarter 4, 2010

Fund Description P

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 31/12/10

OFFICE
Block C, Earlsfort Centre 12.8

Tenant - Office of Public Works
Fund Weighting - 13.2%
2.1 1.5
RETAIL
45/46 Patrick Street, Cork -0.7
-3.0 -2.1
Tenant - C&J Clarke International -5.8

Fund Weighting - 3.8% -10.2
-11.9
INDUSTRIAL/WAREHOUSE
Swords Business Campus
-22.9
Tenants - Air France, Client Logic, Eastern Health Board
Fund Weighting - 10.2%


Asset Distribution Geographic Distribution Equity Sectoral Distribution


17

Canada Life / Setanta Strategic Growth Fund Quarter 4, 2010

Fund Description P

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 %

8.2

BP Energy 1.3
Svenska Cellulosa Industrials/Materials 1.2 0.4

Total Energy 1.2 -0.1
-1.0 -0.9
Microsoft Information Technology 1.1
-2.7
Everest RE GP Financials 1.1 -3.8




18

Canada Life / Setanta Global Opportunity Fund Quarter 4, 2010

Fund Description P

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 %
13.3
8.0 7.7
Pfizer Healthcare 1.8
BP Energy 1.7
Total Energy 1.7
0.2
Microsoft Information Technology 1.7
-0.1
SCA ‘B’ Industrials/Materials 1.7 -1.5
-2.1 -1.8
Everest RE GP Financials 1.5 -4.0
Danaher Industrials/Materials 1.5




19

Canada Life Quadrivium Fund Quarter 4, 2010

Fund Description Fund Composition P

The investment objective of the Canada Life Quadrivium Fund The Quadrivium Fund invests in the following four asset classes:
is to secure long-term capital growth.
High-Yield Equities
The fund seeks to achieve its objective by investing in four The Canada Life Dividend Fund is an equity fund that
different asset classes – equities, bonds, property and specifically targets stable blue chip quality companies with
commodities. By investing in Quadrivium investors can gain the ability to pay consistently strong dividends.
access to a diversified portfolio invested across these four The Dividend Fund is a pure equity portfolio of actively
asset classes. The fund provides exposure to international managed companies with an average of 40 holdings.
shares, Irish & European commercial property, commodities
and fixed interest assets, all within one fund. Property
Irish Commercial Property
The Canada Life Property Fund invests in a range of
Asset Distribution commercial properties. The fund is currently fully invested
in Irish commercial properties but will seek opportunities
outside Ireland where appropriate. The fund is managed by
a team of property specialists at Canada Life European Real
Estate, who have over 20 years of property experience and
manage over €1.7 billion in property assets.

European Property
The Canada Life/Morgan Stanley European Property Fund
invests in a professionally managed portfolio of European
property companies, and is managed by a team of property
experts at Morgan Stanley with over 40 years of collective
experience of real estate markets. The fund invests in
Asset Class Current Expected
quoted European property companies through buying
Allocation Range
real estate securities. Real Estate securities are indirect
Dividend Fund 44.7% 20% - 50% investments in property whose long-term returns depend on
Irish Property 9.4% 10% - 25% the underlying real estate market.
Morgan Stanley Euro Property Fund 20.0% 10% - 25%
Commodities
Commodities 16.7% 0% - 25%
The commodities allocation in the Quadrivium fund invests
Fixed Interest 9.2% 0% - 25% in an Exchange Traded Fund (ETF) issued by ETF Securities.
The ETFs All Commodities DJ-AIGCI is designed to track the
Dow Jones-AIG Commodity sub-index. The Dow Jones-AIG
Fund Performance Commodity sub-index invests in a broadly diversified index
that allows investors to track commodity futures returns
through a single fund. No related group of commodities (e.g
energy, precious metals, livestock or grains) may constitute
12.7 12.3
11.5 more than 33% of the index and no single commodity may
9.3
constitute less than 2% or more than 15% of the index.
Commodities tend to behave differently to all other asset
classes and for this reason are used as a good diversifier in
5.0 5.3
multi-asset portfolios. The ETFs are issued by ETF Securities.
ETF Securities invest the assets backing the ETF with AIG.

Fixed Interest
The Canada Life Fixed Interest Fund invests in government
-3.3 gilts predominantly from eurozone countries. Gilts, or bonds
-5.5 are essentially a form of debt. Governments and large
corporations use them to raise money for capital expenditure.
This fund was launched on 22/10/07


20

Canada Life / Setanta Cash Fund Quarter 4, 2010

Fund Description P

The Cash Fund seeks to provide modest returns in exchange individual securities of ‘A‘ and for the portfolio an average
for relative capital security. The fund may invest in: rating of ‘AA‘.

i) Euro denominated short-dated term deposits with banks The maximum average duration of the fund is 4.5 months,
and/or eligible credit institutions on Canada Life‘s approved and the maximum duration of any one asset is one year.
short-term borrowers list which have a minimum credit The fund has a diversified exposure, with no more than 30%
rating of P-1 and which are authorised to carry on a banking credit exposure to any one entity.
business in the State under Section 9 of the Central Bank
Act, 1971 and/or The fund is actively managed and consideration is given to
the underlying credit worthiness of the financial institution,
(ii) Euro denominated bonds issued by governments or the return and the tenure of the deposit.
corporates subject to a minimum average credit rating of

Counterparty Exposure Fund Commentary

Issuer % of Fund Issuer % of Fund The European Central Bank (ECB) left its main refinancing rate (refi)
National Irish Bank 20.8 German Treasury Bill 3.3
at 1% in line with market expectations. This is expected to remain
unchanged during 2011. EONIA (overnight rate) averaged 0.58%
Ulster Bank 15.4 Bank of Ireland (G) 2.3
over the quarter while 3m Euribor averaged just over 1%, showing
Allied Irish Bank (G) 10.9 EBS Building Society (G) 1.7
signs of normalization back to the main refinancing rate. Liquidity
ACC Bank 10.0 European Investment Bank 1.6 in the euro system remained plentiful and this is keeping EONIA at
BNP 8.9 SPGB 1.2 low levels in relation to the main refinancing rate.
French Treasury Bill 6.6 SGLT 1.0

KBC Bank Ireland 6.1 KFW Bank 0.6 The final quarter of the year saw a couple of key announcements
Irish Life & Permanent (G) 6.0 Cash 0.4
from the ECB. Namely there will be an extension of the full
allotment in open market operations. At the moment full allotment
Dutch Treasury Bill 3.3
will remain in place in the first quarter of 2011, with a further
Counterparty exposures (G) are covered by the Irish Government guarantee. announcement on this expected at the ECB March meeting.
Other counterparty/credit exposures are covered by either other European National
Government Guarantees or have individually strong credit ratings.
There was also a tightening of collateral at the ECB, a sign they are
becoming concerned with the quality of collateral they are holding.
Fund Performance to 31/12/10 This will increase the haircuts applied to lower quality or illiquid
collateral meaning that banks will need to provide more collateral to
secure funds.

1.7 1.7 1.7 The main development of the quarter was the ECB becoming vocal
1.4 1.4 1.4 about their worries on how banks, mainly in peripheral countries,
have become “addicted” to using the ECB lending facilities for
1.0 liquidity. As stated above the ECB did extend full allotment into 2011,
but this was agreed by consensus and not unanimously, despite the
worsening sovereign debt crisis, a clear sign the ECB are intent on
0.3 returning to normal market conditions as soon as they can.

However, there is no easy solution to this problem as these banks
-0.1 can’t fund themselves elsewhere and are using ECB as a lender of
last resort. Full allotment will keep excess liquidity in the system,
-0.5 thus overnight rates will remain below the main refinancing rate.

In the quarter, the Fund reduced its exposure to Irish banks
and has increased its exposure to short-dated government or
Source: Moneymate. Performance is net of management fees. government backed bonds.


21

Canada Life / Setanta Fixed Interest Fund Quarter 4, 2010

Fund Description P

The Fixed Interest Fund invests predominantly in eurozone The fund has a minimum ‘A‘ credit rating investment level for
government bonds. It may also hold corporate bonds and individual securities. The minimum average credit rating for
bonds from non-eurozone countries. The fund is managed by the full portfolio is ‘AA‘. The duration of the portfolio can be
Setanta Asset Management Limited (“Setanta“). between +/- two years of the index.

Setanta‘s general philosophy in relation to fixed income is Returns are likely to be modest and can be negative.
that performance in bond markets is primarily driven by the However, they are significantly less volatile than equity
directional (duration) calls and yield curve positioning. The returns.
fund takes relatively small currency or credit risk.


Company Country %
3.8 4.0
Depfa ACS Bank Ireland 4.7 3.0
2.4 2.1
Buoni Poliennali Del Tes Italy 3.7 1.9
Netherlands Government Netherlands 3.5 0.5
EBS Mortgage Finance Ireland 3.3
Irish Life & Permanent Ireland 3.2
Caisse D’Amort Dette Soc France 3.2
Treasury 5% 2020 Ireland 3.1 -3.7 -3.8

Buoni Poliennali Del Tes Italy 2.8
-6.1
Treasury 4.6% 2016 Ireland 2.6
Landswirtsch. Rentenbank Greece 2.6


Asset Distribution Country Weighting Strategy

Duration: Short of benchmark duration.
Curve: Yield curve should flatten curve over the
next year with a change in interest rate cycle.
Intramarket: Reduce overweight in peripheral
markets, targeting core agency spreads.
Inflation: Inflation data may start to surprise,
look to add inflation linked bonds as insurance.
Credit: Exposure to government guaranteed
debt, covered bonds and agency debt to add
yield but with little additional credit risk.
Currency: Strong performance in the Scandi
currencies over the year, look to take profit.
Position in Polish Zloty on valuation grounds and
leveraged to German growth.


22

Canada Life / SEI Manager-of-Managers Fund Quarter 4, 2010

CL SEI Global Balanced Fund P

Investment Objective and Strategy Fund Performance
The SEI Global Balanced Fund aims to provide long term Q4 10 1 Yr 2 Yr p.a 3 Yr p.a 4 Yr p.a 5 Yr p.a
growth of capital with a moderate level of income by 7.0% 14.9% 17.5% -1.0% -1.9% -0.5%
investing in a range of SEI multi-manager equity and fixed
income funds. The fund is a globally diversified fund with
approximately 70% invested in top tier equity funds and the
Top 10 Holdings %
remaining 30% invested in top tier fixed income funds. Apple 1.47
Microsoft Corp. 1.15
Asset Allocation JPMorgan Chase 1.07
Wells Fargo 1.06
Equities 70%
Qualcomm 1.05
US Large Cap 28.00
Cisco Systems 1.01
Global Developed Markets 14.00
Chevron 0.92
Europe Ex-UK 10.00
AT&T 0.79
UK 6.00
Procter & Gamble 0.77
Japan 5.00
ConocoPhillips 0.70
Pacific Basin Ex-Japan 3.50
Total 9.99
Emerging Markets 3.50

Fixed Income Managers %
Fixed Income 30%
First International Advisors 5.70
Global 15.00
UBS Currency 12.75
Global Opportunistic 15.00
DB Advisors 3.06
Total 100%
Jennison Associates 2.19
Schroders Investment Management 2.64
Wellington GRV 3.78
TCW Group 3.33
List of Managers %
US Large Companies Equities 28.00 UK Equities 6.00
Analytic Investors Inc. 3.36 Jupiter Investment Managers 0.18
Aronson, Johnson, Ortiz 4.20 Invesco Quantatitive Strategies 1.20
Delaware Investment Advisors 2.52 Investec Asset Management 0.72
Enhanced Investment Technologies 3.36 L.A. Capital Management 1.50
Legg Mason - Growth Equity 1.12 Mirabaud Asset Management 1.20
Legg Mason - Core Equity 1.96 Standard Life Investments 1.20
LSV Asset Management 3.64 Japanese Equities 5.00
Neuberger Berman 2.52 Acadian Asset Management 1.35
Quantitative Management Associates 3.64 Analytic Investors Inc. 1.00
Global Developed Markets Equities 14.00 Capital International 1.90
Acadian Asset Management 1.54 JPMorgan Asset Management 0.75
Tradewinds 1.12 Pacific Basin Ex-Japan Equities 3.50
Enhanced Investment Technologies 5.88 Axa Rosenberg Investment Management 0.93
Janus Capital Group 2.80 Capital International 0.63
Principal Global Investors 4.48 Lloyd George Investment Management 1.23
Quantitative Management Associates 7.84 Maple-Brown Abbott Limited 0.53
Wellington Managament Co. Int. Value 2.80 Emerging Markets Equities 3.50
Europe Ex-UK Equities 10.00 Alliance Bernstein 0.53
Acadian Asset Management 3.00 Artisan Partners 0.53
BlackRock International 2.20 Axa Rosenberg Investment Management 0.79
JPMorgan Asset Management 2.60 PanAgora Asset Management 0.53
TT International 2.20 Rexiter Capital Management 0.53
The Boston Company Asset Management 0.61

23

Canada Life / SEI Manager-of-Managers Fund Quarter 4, 2010

CL SEI Global Developed Markets Equity Fund P

Investment Objective and Strategy Fund Performance
The investment objective of the Global Developed Markets Q4 10 1 Yr 2 Yr p.a 3 Yr p.a 4 Yr p.a
Equity Fund is to achieve capital appreciation by investing
10.5% 17.9% 19.2% -8.5% -8.7%
primarily in equity securities of issuers located in developed
countries. Following a manager-of-managers approach, the
fund’s assets are diversified across specialist sub-advisers.

Fund Benchmark
MSCI World Index

Top 10 Holdings % Country Allocation %
Microsoft 1.2 United States 45.3
General Electric 1.1 Japan 10.1
Exxon 1.0 United Kingdom 10.0
Pfizer 1.0 Canada 4.8
HSBC 0.8 Germany 3.5
Newmont Mining Corp. 0.8 Switzerland 3.5
Apple 0.8 France 3.4
Cisco Systems 0.8 Brazil 1.9
Wal-Mart Stores 0.7 Australia 1.6
Merck & Co. 0.7 Sweden 1.5
Total 8.9 Other 14.5

Underlying Managers Sector Weighting %
Intech Investment Management 17.5 Financials 15.3
Janus Capital Management 16.5 Industrials 14.3
Principle Global Investors 15.5 Consumer Discretionary 13.3
Tradewinds Global Investors 12.4 Information Technology 11.2
Wellington Management Company International Value 17.5 Energy 10.0
SEI Investments Management 20.6 Healthcare 9.8
Fund Total 100.00 Materials 9.8
Consumer Staples 7.6
Telecoms 5.4
Utilities 3.3

Market Capitalisation Breakdown (USD) Weight (%)
Greater than 50 Billion 26.0
Between 20 and 50 Billion 20.6
Less than 1 Billion 1.8

24

Investment Edge Q4 2010

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