The Desjardins Financial Security Guaranteed Investment...

For representatives’ use only

Funds

The Desjardins Financial Security Guaranteed Investment FundsCustomized funds for the “new” retirement!

Don’t forget to read the 75/75, 75/100 i, 100/100 r Leaflets to discover the core guarantees as well as the GMWB Leaflet for the Guaranteed Minimum Withdrawal Benefit.

Guaranteed investment Funds available in the Helios Contract

Portfolios of Funds:

DFs GiF – Diversified income – Quotential* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2DFs GiF – Balanced income – Quotential* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3DFs GiF – Balanced Growth – Quotential* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4DFs GiF – Growth and income – northwest Quadrant* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5DFs GiF – Growth – Quotential* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6DFs GiF – ultimate equity – Multi-managers* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Individual Funds:

IncomeDFs GiF – Money Market* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8DFs GiF – income – Fiera* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9DFs GiF – Canadian Bond – addenda* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10DFs GiF – Global High income – Multi–managers* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11DFs GiF – Growth and income – northwest* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Balanced and Asset AllocationDFs GiF – Global Balanced – Jarislowsky Fraser* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13DFs GiF – Balanced Growth – Mclean Budden* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14DFs GiF – Canadian Balanced – Fiera* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15DFs GiF – Canadian Balanced – Bissett* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Canadian EquityDFs GiF – Dividend income – Bissett* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17DFs GiF – Canadian Dividend – Fiera* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18DFs GiF – Canadian equity – Jarislowsky Fraser* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19DFs GiF – Canadian equity – Fiera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20DFs GiF – Canadian equity – Bissett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21DFs GiF – specialty Growth – northwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22DFs GiF – Canadian equity Growth – Mclean Budden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23DFs GiF – north american small Company – Fiera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24DFs GiF – small Cap – Bissett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25DFs GiF – specialty equity – northwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Foreign EquityDFs GiF – Global – Fidelity* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27DFs GiF – Global equity – allianceBernstein* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28DFs GiF – american equity – uBs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29DFs GiF – international equity – allianceBernstein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30DFs GiF – european equity – allianceBernstein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31DFs GiF – american equity – Mclean Budden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

the Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

the Desjardins Financial security Guaranteed investment Funds . . . . . . . . . . . . . . . . . . 37

table of Contents

What is a Guaranteed Investment Fund (GIF)?Commonly known as a “segregated fund”, a GiF is an investment fund created and issued exclusively by life insurance companies . it is offered through contracts which offer maturity and death benefit guarantees .

* these funds are available for the GMWB .

2

the Funds

portfolios of Funds

* please refer to the Contract and information Folder for more information on how fees are charged .

DFS GIF – DIvErSIFIED InComE – QuoTEnTIAl

Fund Manager Franklin templeton

Underlying Fund Franklin templeton/Quotential Diversified income portfolio

Asset Category Canadian Fixed income Balanced

Inception Date series 5: october 29, 2007

Minimum Investment initial Deposit: $500 periodic Deposit: $50 per month

MER * 2 .60% + additional Fee – Guarantee 75/100 i 0 .20% additional Fee – Guarantee 100/100 r 0 .20% additional Fee – GMWB 0 .20%

Fund Numbers Guarantee Guarantee Guarantee 75/75 75/100 i 100/100 r

series 5a (negotiable) s359 M359 l359

series 5B (low-load/3-yr DsC) s350 M350 l350

series 5C (Back-end load/6-yr DsC) s355 M355 l355

Objective and Strategy of the Fundto provide a balance of capital growth and interest income by investing primarily in units of an underlying fund in order to gain the desired exposure to the equity and fixed income markets .Well suited for investors with secure profiles .

Main Features Maximum diversification for income generation:• Mortgages• international Bonds• emerging Markets Bonds• investment Grade Corporates• u .s . Government Bonds• Canadian Government Bonds• preferred and Dividend paying shares• income trusts• High yield Bonds

Portfolio ManagerBrent s . smith, lead Manager, Quotential program .industry experience: 10 years .

Benchmark IndexsC Bond universe

Financial Highlightsseries 5 was created on october 29, 2007 and no financial information is available .

Annual Compound Returns of the Underlying Fund as at June 30, 2007

Year to date 1 year 3 years 5 years 10 years

series 5 -0 .67 6 .34 5 .69 – –

the returns were calculated using the gross return of the underlying funds net of the Mer for the 75/75 Guarantee, if this Guarantee would have been available for the periods listed .

Holdings as at June 30, 2007

Target Actual Underlying Funds Allocation Allocation

Bissett Dividend income Fund 33 .0% 34 .1%

Bissett Bond Fund 32 .0% 30 .7%

Bissett income Fund 14 .0% 12 .8%

Franklin strategic income Fund 9 .0% 10 .1%

templeton Global Bond Fund 8 .5% 8 .8%

Franklin High income Fund 3 .5% 3 .5%

the Funds

3


DFS GIF – BAlAnCED InComE – QuoTEnTIAl


Underlying Fund Franklin templeton/Quotential Balanced income portfolio

Asset Category Canadian neutral Balanced








Objective and Strategy of the Fund• to provide a balance of capital growth and interest income by investing primarily

in units of an underlying fund in order to gain the desired exposure to the equity and fixed income markets .

• Well suited for investors with moderate profiles .

Main Features Conservatively managed: • significant weightings in fixed income• exposure to growth potential of equities


Composition of the Indices

Index Name Percentage Used

sC Bond universe 60%

s&p/tsX 18%

s&p 500 11%

MsCi World 11%




series 5 0 .59 8 .40 6 .87 – –







Bissett Canadian equity Fund 16 .0% 13 .5%

Mutual Beacon Fund 5 .0% 6 .3%

Bissett all Canadian Focus Fund 3 .5% 2 .5%

Franklin templeton u .s . rising Dividends Fund 3 .0% 3 .6%

Bissett small Cap Fund 3 .0% 1 .7%

templeton Growth Fund . ltd 2 .0% 3 .1%

Mutual Discovery Fund 2 .0% 3 .8%

templeton Global smaller Companies Fund 2 .0% 3 .5%

templeton emerging Markets Fund 1 .0% 2 .2%

Franklin templeton Canadian small Cap – 1 .7%

Cash/Money Market – 0 .5%

4

the Funds

portfolios of Funds


DFS GIF – BAlAnCED GroWTh – QuoTEnTIAl


Underlying Fund Franklin templeton/Quotential Balanced Growth portfolio

Asset Category Global neutral Balanced


Minimum Investment: initial Deposit: $500 periodic Deposit: $50 per month








• Well suited for investors with balanced profiles .

Main Features Growth with stability:• solid foundation of fixed income• significant weightings in equities





s&p/tsX 35%

s&p 500 13%

MsCi World 12%




series 5 2 .09 11 .81 8 .92 – –












templeton Growth Fund, ltd 2 .5% 2 .7%




Franklin templeton Canadian small Cap 1 .5% 3 .5%


the Funds

5


DFS GIF – GroWTh AnD InComE – norThWEST QuADrAnT

Fund Manager northwest

Underlying Fund northwest Quadrant Growth and income portfolio

Asset Category Global equity Balanced









in units of individual underlying funds in order to gain the desired exposure to the equity and fixed income markets .

• Well-suited for investors with dynamic investment profiles .

Main Features• immediate diversification of major asset classes• optimal mix of funds




s&p/tsX 35%

s&p 500 (CaD) 10%

MsCi eaFe (CaD) 10%

MsCi World (CaD) 10%




series 5 2 .50 – – – –




northwest Canadian Bond Fund 20 .0% 19 .8%

northwest Canadian Dividend Fund 15 .0% 14 .7%

northwest Canadian equity Fund 25 .0% 24 .4%

northwest Foreign equity Fund 20 .0% 19 .6%

northwest specialty Growth Fund inc . 10 .0% 9 .8%

northwest specialty Global High yield Bond Fund 10 .0% 9 .8%


6

the Funds

portfolios of Funds


DFS GIF – GroWTh – QuoTEnTIAl


Underlying Fund Franklin templeton/Quotential Growth portfolio

Asset Category Global equity Balanced










• Well suited for investors with growth profiles .

Main Features enhanced return potential:• 80% equity weightings• 20% income weightingsinternational exposure





s&p/tsX 22%

s&p 500 44%

MsCi eaFe 14%




series 5 3 .24 15 .21 8 .88 – –















Franklin templeton Canadian small Cap 1 .5% 3 .5%

templeton international stock Fund 3 .5% 3 .9%


the Funds

7


DFS GIF – ulTImATE EQuITy – mulTI-mAnAGErS

Fund Manager Multi-managers

Underlying Fund n .a .

Asset Category Canadian Focused equity








Objective and Strategy of the Fundto provide capital growth through a portfolio primarily comprised of equity investments managed by specialists in all areas . the Fund invests in a wide array of funds managed by Bissett, Mclean Budden, northwest, Jarislowsky Fraser and allianceBernstein .

Main Features• optimal mix of equity funds exclusive to Desjardins Financial security• Multi-manager approach provided by acclaimed fund managers and sub-advisors• exposure to all stock exchanges worldwide



s&p/tsX 40%

MsCi eaFe (CaD) 15%


BMo nB small Cap 10%


Annual Compound Returns of the Underlying Fund as at June 30, 2007n .a .




northwest specialty Growth Fund inc . 5 .0% 5 .0%

northwest specialty equity Fund 5 .0% 5 .1%

Mclean Budden Canadian equity Growth Fund 30 .0% 30 .6%

Bernstein international equity value Fund 20 .0% 19 .8%

Jarislowsky Fraser Canadian equity Fund 15 .0% 15 .2%

Mclean Budden american equity Growth Fund 10 .0% 9 .6%

8

the Funds


income

DFS GIF – monEy mArkET

Fund Manager Fiera

Underlying Fund n .a ., fund in kind

Asset Category Canadian Money Market








Objective and Strategy of the Fundto provide a higher level of interest income than can normally be obtained from savings accounts, combined with a high level of liquidity and safety of capital . the Fund invests primarily in Canadian government treasury bills and in bankers’ acceptances .

Main Features• very liquid short-term investment• low volatility

Portfolio ManagerFrédérick Bérubé, vice-president & portfolio Manager, Money Market .13 years of industry experience .

Benchmark IndexsC 91-day tresury Bills



Top Ten Holdings of the Fund as at June 30, 2007

Description %

sound trust, Discounted Commercial paper, 4 .36%, July 17, 2007 6 .7

Canada treasury Bill, august 9, 2007 6 .0

national Bank of Canada, Bankers’ acceptances, 4 .51%, september 17, 2007 5 .8

Corporation d’héberg . du Québec, Disc . prom . note, 4 .54%, september 18, 2007 5 .2

Fusion trust, Discount Com . paper, 4 .40%, July 23, 2007 5 .2

loto-QuÉBeC, Disc . promissory note, 4 .32%, november 29, 2007 5 .0

université de Montréal, Discounted promissory note, 4 .46%, July 30, 2007 4 .8

Corporate receivables trusts, Disc . Comm . paper, 4 .36%, July 17 2007 4 .8

investissement Québec, Discounted promissory note, 4 .36%, July 3, 2007 4 .2

ontario treasury Bill, august 7, 2007 3 .8

Total Number of Holdings: 39

44 .3% treasury Bills 10 .2% Bankers’ acceptances 45 .5% Commercial paper

Marché monétaireMoney Market Fund

Fund Asset Allocation as at June 30, 2007

the Funds

9


DFS GIF – InComE – FIErA

Fund Manager Fiera


Asset Category Canadian Fixed income








Objective and Strategy of the Fundto provide above-average interest income with some potential for capital growth . the Fund invests primarily in bonds and other interest-bearing instruments of Canadian federal and provincial governments and high quality corporations .

Main Features• Broad variety of debt securities and span of maturity dates (medium to

long-term)• Focuses on the securities of provincial governments and companies offering

high returns

Portfolio Managers• art yeates, vice-president & senior portfolio Manager, Fixed income . 21 years of industry experience .• Gaétan Dupuis, vice-president & senior portfolio Manager, Fixed income . 17 years of industry experience .

Fixed Income StrategyCredit spread and interest rate forecasting





Description %

Government of Canada, 4 .00%, June 1, 2016 18 .5


ontario, Floating rate note, october 1, 2008 7 .0



ontario, 5 .60%, June 2, 2035 4 .3

ont . school Boards Financing Corp ., 5 .07%, april 18, 2031 4 .0

Quebec, 6 .50%, october 1, 2007 3 .1

BCe inc ., 7 .35%, october 30, 2009 2 .8

Greater toronto airports authority, 6 .47%, February 2, 2034 2 .6


Fonds de revenuIncome

Canadian Bonds 40 .9% Federal Bonds 18 .5% provincial Bonds 4 .0% Municipal Bonds 29 .7% Corporate Bonds

3 .2% others 3 .7% Cash/Money Market


10

the Funds


income

DFS GIF – CAnADIAn BonD – ADDEnDA

Fund Manager addenda

Underlying Fund DFs addenda Canadian Bond

Asset Category Canadian Fixed income








Objective and Strategy of the Fundto provide a high yield and reasonable stability of capital . this will normally provide higher returns and better potential for capital gains and also some variability of performance during periods of rapidly changing interest rates . income is reinvested to enhance long-term returns through compounding .

Main Features • large number of fixed-income securities, mainly investment grade Canadian

federal, provincial government and corporate bonds, debentures, and short-term notes

• Major resources allocated to analysing and selecting corporate bonds • Can invest up to 20% of its assets in foreign currency-denominated bonds

Portfolio ManagerBarbara lambert, lead manager, Government Bonds .More than 10 years of investment experience .

Fixed Income StrategyCredit spread and interest rate forecasting





series 5 -0 .41 2 .74 3 .44 4 .16 –



Description %

Government of Canada, 3 .75%, september 1, 2011 16 .0


ontario, Floating rate note, october 1, 2008 6 .9


Government of Canada, 4 .00%, september 1, 2010 4 .0

Canada Housing trust, 4 .80%, June 15, 2012 3 .9

Canada Housing trust, 4 .00%, June 15, 2012 2 .9

u .s . treasury Bill, 4 .625%, February 15, 2017 2 .8

ontario, 5 .70%, December 1, 2008 2 .8

Canada Housing trust, 4 .05%, March 15, 2011 2 .7

Fonds d’obligations BissettBissett Bond

Canadian Bonds 50 .5% Federal Bonds 18 .2% provincial Bonds 22 .7% Municipal Bonds

8 .2% Foreign Bonds 0 .1% others 0 .3% Cash/Money Market


the Funds

11




Fund Manager Multi-managers

Underlying Fund n .a ., see target Mix

Asset Category Global Fixed income








DFS GIF – GloBAl hIGh InComE – mulTI-mAnAGErS

Objective and Strategy of the Fundto actively manage a diversified portfolio of income generating securities . the fund invests primarily in global real estate investment trusts, income trusts and other securities issued by Canadian and non-Canadian governments, financial institutions and companies .

Main Features• unique combination of funds exclusive to Desjardins Financial security• suitable for investors with moderate investment profiles• Multi-diversification: type of securities, geographical regions, management styles

Portfolio Managers• Fiera Income Trust Fund: peter Brown, vice-president and portfolio Manager,

equities . More than 40 years of investment experience .• Desjardins Global Real Estate Fund: steve Carroll (asia/pacific),

Jeremy anagnos (europe) and William Carroll (north america), co-founders of CB richard ellis Global real estate securities, llC (CBre) . Combining more than 44 years of investment experience .

• Northwest Specialty Global High Yield Bond Fund: Darrin smith, High yield Bond portfolio Manager for aviva Capital Management . More than 14 years of investment experience .

Target Mix• Fiera income trust Fund: 50%• Desjardins Global real estate Fund: 35%• northwest specialty Global High yield Bond Fund: 15%



sC income trust 50%

Ftse epra/nareit 35%

lehman us High yield index (Constraint 2%) 15%

Top Holdings of the Fund as at June 30, 2007

Description %

Fiera yMG income trust Fund 53 .0

Desjardins Global real estate Fund 32 .0

northwest specialty Global High yield Bond Fund 15 .0

12

the Funds


income


Underlying Fund northwest Growth and income Fund

Asset Category Canadian equity Balanced











series 5 2 .99 14 .65 10 .53 – –


DFS GIF – GroWTh AnD InComE – norThWEST

Objective and Strategy of the Fundto provide a consistent stream of income and capital appreciation by investing in a mix of equities and fixed-income securities .

Main Features • invest in a diversified portfolio consisting primarily of a balance of large cap

equity and investment grade fixed-income securities issued principally by Canadian issuers

• uses economic value added (eva)® strategies to maximize returns and reduce risk

Portfolio Managerrichard Fogler, Managing Director and Chief investment officer, Kingwest & Company . More than 25 years of investment experience .

Management Stylevalue




s&p/tsX 35%

s&p 500 15%


Description %

northwest Canadian Bond Fund 26 .8

northwest Global equity Fund 18 .9

Cash and Cash equivalents 3 .3

toronto-Dominion Bank 2 .7

royal Bank of Canada 2 .5

shaw Communications inc . 2 .4

aGF Management limited 2 .2

rogers Communication inc . 2 .2

telus Corporation 2 .1

BCe inc . 2 .1


Fonds de Revenu et croissance NordOuestNorthwest Growth and Income

26 .9% Canadian Bonds 42 .9% Canadian equity 7 .5% american equity 0 .5% international equity 18 .9% Global equity 3 .3% Cash/Money Market


the Funds

13





series 5 -0 .86 9 .40 5 .58 4 .47 –


Fund Manager Jarislowsky Fraser

Underlying Fund Jarislowsky Fraser Global Balanced Fund









DFS GIF – GloBAl BAlAnCED – JArISloWSky FrASEr

Balanced and asset allocation

Objective and Strategy of the Fundto provide investors with an opportunity to achieve a high rate of return by investing in a diversified portfolio consisting of a balance of equity and fixed income securities of issuers located throughout the world .

Main Features• Bonds are selected based on the high quality of the issuers• long-term asset allocation and bottom-up approach• Companies selected based on the quality of their managers, solid financial health

and strong growth perspectives

Portfolio Managersa management team averaging more than 17 years of industry experience .



sC 91-day tresury Bills 6%


s&p/tsX 22%

s&p 500 (CaD) 16%

MsCi eaFe (CaD) 16%


Description %

Jarislowsky international equity Fund (usD) 20 .3


Bank of nova scotia 1 .6

ontario, 6 .10%, november 19, 2010 1 .5


Manulife Financial 1 .5

ontario, 6 .50%, March 8, 2029 1 .5


nexen inc . 1 .3



Fonds équilibré global Jarislowsky FraserJarislowsky Fraser Global Balanced Fund

32 .0% Canadian Bonds 25 .2% Canadian equity 16 .8% american equity 20 .3% international equity 5 .7% Cash/Money Market


14

the Funds






series 5 1 .73 13 .49 7 .89 7 .23 5 .86


Fund Manager Mclean Budden

Underlying Fund Mclean Budden Balanced Growth Fund









DFS GIF – BAlAnCED GroWTh – mclEAn BuDDEn

Objective and Strategy of the Fundto provide investors with an opportunity to achieve as high a rate of return as is consistent with a conservative investment policy . the Fund provides such an opportunity through a diversified portfolio consisting of a balance of equity and fixed-income securities issued principally by Canadian issuers .

Main Features• Fixed income component comprising high quality securities• Consistent long-term performance• Focuses on large cap companies with solid financial track records, excellent

management team and above-average growth prospects






s&p/tsX Capped 38%



Description %

Mclean Budden international equity Growth Fund 10 .3

Mclean Budden Global equity Fund 10 .0

Mclean Budden american equity Fund 7 .9

ontario, 5 .00%, March 8, 2014 2 .3


research in Motion ltd . 1 .9

Cameco Corporation 1 .7



Canadian national railway Company 1 .4


Fonds équilibré de croissance McLean BuddenMcLean Budden Balanced Growth Fund

34 .6% Canadian Bonds 0 .6% supranational Bonds 1 .7% american Bonds 29 .6% Canadian equity 13 .1% american equity 14 .9% international equity 5 .5% Cash/Money Market


the Funds

15




Fund Manager Fiera










DFS GIF – CAnADIAn BAlAnCED – FIErA

Objective and Strategy of the Fundto provide investors with a balance of capital growth and interest income . the Fund invests in the common shares of medium and large Canadian corporations and in high-quality government and corporate bonds .

Main Features• Combines a high equity growth potential with bond safety• instant portfolio diversification

Portfolio Managers• Money Market: F . Bérubé .• Bonds: a . yeates & G . Dupuis .• Canadian equity: p . roy .• us equity: s . roy & B . Mayer-Godin .• asset allocation: F . Bourdon & J .-G . Desjardins .





s&p/tsX Capped 40%

s&p 500 (CaD) 10%

MsCi eaFe (CaD) 10%


Description %

Canada treasury Bill, July 26, 2007 7 .2




Government of Canada, 4 .25%, December 1, 2008 2 .7

petro-Canada 1 .7






Fonds équilibré canadien (Elantis)Canadian Balanced Fund



16

the Funds






series 5 0 .50 10 .45 8 .38 7 .00 –


Fund Manager Bissett

Underlying Fund Bissett Canadian Balanced Fund









DFS GIF – CAnADIAn BAlAnCED – BISSETT

Objective and Strategy of the Fundto provide investors with a balance of current income and long-term capital appreciation primarily through the investment in Canadian fixed-income and equity securities . the Fund provides such an opportunity by investing in a diversified portfolio of Bissett mutual funds .

Main Features• portfolio composed of seven of the top-performing Bissett funds• Combines the lower volatility of a balanced fund with the superior returns of an

equity fund• invested in Canadian securities: fixed-income and equities

Portfolio ManagerMichele r . Horne, lead Manager . industry experience: 17 years .




s&p/tsX 35%

s&p 500 12 .5%

MsCi eaFe 12 .5%

Top Holdings of the Fund as at June 30, 2007

Description %

Bissett Bond Fund 37 .4

Bissett Canadian equity Fund 24 .7

Bissett international equity Fund 11 .9

Franklin templeton u .s . rising Dividends Fund 10 .6

Bissett small Cap Fund 5 .8

Bissett Multinational Growth Fund 3 .9

Bissett Microcap Fund 2 .7

Cash/Money Market 3 .0


Fonds équilibré canadien BissettBissett canadien Balanced



the Funds

17


Canadian equity


Underlying Fund Bissett Dividend income Fund

Asset Category Canadian equity Balanced









Description %


BCe inc . 3 .6


iGM Financial inc . 3 .3

Bank of Montreal 3 .1


national Bank of Canada 2 .9

telus Corporation 2 .6

thomson Corporation 2 .5

power Financial Corporation 2 .5





series 5 0 .36 12 .85 9 .79 8 .15 –


DFS GIF – DIvIDEnD InComE – BISSETT

Objective and Strategy of the Fundto provide the investor with a consistent return through investment in dividend paying securities . the Fund invests in a diversified portfolio of Canadian issuer preferred shares and common shares as well as common share of united states issuers with long histories of dividend growth .

Main Features• Consistent performance and reliable dividend income• Diversified portfolio that includes real estate investment trust securities• invests in bonds to reduce the risk level of the portfolio

Portfolio ManagerJuliette l . John, lead Manager . industry experience: 10 years .

Management StyleGrowth at a reasonable price




BMo nB preferred shares 25%

s&p/tsX Capped 50%

s&p 500 (CaD) 15%

Fonds de revenus de dividendes BissettBissett Dividend Income Fund

20 .4% Canadian Bonds 1 .0% american Bonds

Canadian equity 57 .9% Common shares 2 .5% preferred shares

13 .0% american equity 2 .6% international equity 2 .6% Cash/Money Market


18

the Funds


Canadian equity

DFS GIF – CAnADIAn DIvIDEnD – FIErA

Fund Manager Fiera

Underlying Fund n .a . fund in kind

Asset Category Canadian Dividend & income equity











Description %



enCana Corporation 3 .3




alcan inc . 1 .9

teck Cominco ltd . 1 .7

Husky energy 1 .7

Canadian imperial Bank of Commerce 1 .6


Objective and Strategy of the Fundto provide the investor with a balance of capital growth and dividend income through investments primarily in large, financially stable corporations . the Fund will emphasize investments in high-yield preferred shares and a core, limited turnover portfolio of common shares .

Main Features• takes advantage of long-term growth outlooks of the Canadian economy• investments in fixed income securities, preferred shares paying high dividends

and common shares of well-established com pa nies help reduce the level of risk

Portfolio Managers• Money Market: F . Bérubé .• Bonds: a . yeates & G . Dupuis .• preferred equity: p . roy .• Canadian equity: Carole Berthiaume, vice-president & senior portfolio Manager,

equities . 19 years of industry experience .

Management StyleCombination of value and growth styles



sC Bond universe 5%

BMo nB preferred shares 35%

s&p/tsX Capped 60%

Fonds de dividendes canadiensCanadian Dividend Fund

4 .6% Canadian Bonds

Canadian equity 59 .9% Common shares 33 .8% preferred shares

1 .7% Cash/Money Market


the Funds

19


Fund Manager Jarislowsky Fraser

Underlying Fund Jarislowsky Fraser Canadian equity Fund

Asset Category Canadian equity











series 5 6 .10 19 .47 18 .10 14 .26 14 .41



Description %

Jarislowsky special equity Fund 7 .0





nexen inc . 5 .2

talisman energy inc . 3 .9

snC-lavalin Group inc . 3 .7

Canadian tire Corporation ltd . 3 .3



Objective and Strategy of the Fundto achieve long-term capital appreciation while continuing to emphasize the preservation of capital by investing primarily in Canadian equity securities in areas in the Canadian economy where superior rates of growth are expected .

Main Featuresportfolio composed of stocks of companies that enjoy solid earnings growth, mainly leaders in non-cyclical industries


Management StyleGrowth at a reasonable style

Benchmark Indexs&p/tsX

DFS GIF – CAnADIAn EQuITy – JArISloWSky FrASEr

Fonds d’actions canadiennes Jarislowsky FraserJarislowsky Fraser Canadian Equity Fund

Canadian equity 33 .2% Financials 26 .9% energy 2 .3% utilities 7 .7% industrials 6 .4% Materials 0 .2% information technology 11 .8% Consumer Discretionary 7 .9% Consumer staples 2 .4% telecommunication services 0 .1% Health Care



20

the Funds


Canadian equity

Fund Manager Fiera





MER * 2 .30% + additional Fee – Guarantee 75/100 i 0 .35% additional Fee – Guarantee 100/100 r 0 .45% additional Fee – GMWB n .a








Description %

petro-Canada 4 .4






suncor energy inc . 2 .9

national Bank of Canada 2 .9

Barrick Gold Corporation 2 .8

ing Canada 2 .7


DFS GIF – CAnADIAn EQuITy – FIErA

Objective and Strategy of the Fundto provide investors with long-term capital growth . the Fund invests primarily in the common shares of medium and large Canadian corporations .

Main Features• to strike a balance between expanding companies and those offering an

excellent long-term growth potential• securities selection based on the confirmation and upwards revision of

profit expectations

Portfolio Managerpatrick roy, vice-president & senior portfolio Manager, alternate equities & trading strategies . industry experience: 13 years .


Benchmark Indexs&p/tsX Capped

Fonds d’actions canadiennesCanadian Equity Fund

Canadian equity 33 .2% Financials 25 .9% energy 0 .5% utilities 2 .8% industrials 18 .5% Materials 4 .5% information technology 4 .8% Consumer Discretionary 4 .1% Consumer staples 4 .7% telecommunication services 0 .9% Health Care



the Funds

21



Underlying Fund Bissett Canadian equity Fund




MER * 2 .70% + additional Fee – Guarantee 75/100 i 0 .35% additional Fee – Guarantee 100/100 r 0 .45% additional Fee – GMWB n .a .








series 5 6 .30 19 .04 14 .57 10 .79 –



Description %




power Financial Corporation 3 .8


petro-Canada 3 .6


alimentation Couche-tard 3 .1

alliance atlantis Communications inc . 2 .9

rogers Communication inc . 2 .8


DFS GIF – CAnADIAn EQuITy – BISSETT

Objective and Strategy of the Fundto achieve long-term capital appreciation while continuing to emphasize the preservation of capital . the Fund invests primarily in Canadian equity securities in areas of the Canadian economy where superior rates of growth are expected .

Main Features• the Fund’s bottom-up Garp approach invests in growth-oriented companies at

reasonable prices• access to many quality Canadian companies overlooked by strict value and

growth managers• reasonable weighting (less than 5%) of each security

Portfolio Managers• Fred e . pynn, Co-lead Manager . industry experience: 17 years .• Garey J . aitken, Co-lead Manager . industry experience: 11 years .



Fonds d’actions canadiennes BissettBissett Canadian Equity Fund

Canadian equity 36 .6% Financials 20 .5% energy 10 .4% industrials 1 .4% Materials 1 .9% information technology 9 .7% Consumer Discretionary 9 .8% Consumer staples 5 .5% telecommunication services



22

the Funds


Canadian equity


Underlying Fund northwest specialty Growth Fund

Asset Category Canadian small/Mid Cap equity











series 5 8 .65 14 .28 16 .58 – –



Description %

industrial alliance insurance and Financial services 7 .8

Groupe laperrière & verreault, Class a 6 .2

power Corporation of Canada 5 .6


logibec Groupe informatique 4 .6

Gildan activewear 4 .2

Metro inc . 4 .0

transat a .t ., inc . 3 .9

Canam Group 3 .7

BMtC Group 3 .5


DFS GIF – SpECIAlTy GroWTh – norThWEST

Objective and Strategy of the Fundto provide investors with long-term capital appreciation by investing primarily in common shares and other equity securities issued mainly by Quebec companies .

Main Features• Bottom-up approach and elaborate analysis system through the sub-advisor

Montrustco Bolton, a specialist in Canadian securities• securities are selected based on companies who have serious business plans and

proper financial resources

Portfolio ManagerChristian Godin, lead Manager .



Fonds Nord-Ouest Croissance QuébecNorthwest Quebec Growth Fund

Canadian equity 27 .6% Financials 15 .0% energy 14 .7% industrials 7 .8% Materials 7 .0% information technology 13 .5% Consumer Discretionary 5 .6% Consumer staples 6 .5% Health Care



the Funds

23



Underlying Fund Mclean Budden Canadian equity Growth Fund

Asset Category Canadian Focused equity











series 5 7 .81 25 .58 14 .64 12 .22 7 .41



Description %

Mclean Budden Global equity Fund 10 .2

Mclean Budden international equity Growth Fund 8 .2

Mclean Budden american equity Fund 6 .7

research in Motion ltd . 4 .7

Cameco Corporation 4 .2


alcan inc . 3 .5





DFS GIF – CAnADIAn EQuITy GroWTh – mclEAn BuDDEn

Objective and Strategy of the Fundto provide investors with a high rate of return through investment primarily in Canadian equity growth securities . the Fund invests primarily in the common shares of medium-sized and large Canadian corporations that have sustained growth and have excellent future growth prospects .

Main FeaturesFocuses on companies demonstrating superior growth, that are in sound financial health and show excellent business potential


Management StyleGrowth

Benchmark Indexs&p/tsX Capped

Fonds d’actions canadiennes de croissance McLean BuddenMcLean Budden Canadian Equity Growth Fund

Canadian equity 21 .1% Financials 20 .0% energy 5 .5% industrials 7 .7% Materials 6 .9% information technology 5 .8% Consumer Discretionary 3 .6% Consumer staples 3 .0% telecommunication services

12 .0% american equity 13 .0% international equity 1 .4% Cash/Money Market


24

the Funds


Canadian equity

Fund Manager Fiera













Description %

Futures contracts – russell 2000 49 .6

richelieu Hardware 1 .4

Major Driling Group international 1 .3

atrium innovations 1 .3

sierra Wireless inc . 1 .3

astral Media inc . 1 .3

MeGa Brands inc . 1 .2

Ceramic protection Corporation 1 .2

reitmans (Canada) ltd . 1 .1

stantec inc . 1 .1


DFS GIF – norTh AmErICAn SmAll CompAny – FIErA

Objective and Strategy of the Fundto provide investors with long-term capital growth . the Fund invests mainly in shares of Canadian and american companies .

Main Features• Half the portfolio aims to reproduce the u .s . russell 2000 index• the other half is invested actively in financially solid Canadian companies with

substantial growth potential

Portfolio Managers• Money Market: F . Bérubé .• Canadian small Cap equity: M . Dufresne & p . potvin .• russel 2000: s . roy .

Management StyleGrowth



BMo nB small Cap 50%

russell 2000 (CaD) 50%

Fonds de petites entreprises nord-américainesNorth American Small Company Fund

Canadian equity 2 .2% Financials 7 .8% energy 11 .4% industrials 9 .5% Materials 4 .8% information technology 9 .2% Consumer Discretionary 1 .6% Consumer staples 2 .5% Health Care

49 .6% russell 2000 1 .4% Cash/Money Market


the Funds

25



Underlying Fund Bissett small Cap Fund












series 5 4 .31 8 .99 17 .39 15 .00 –



Description %

alliance atlantis Communications inc . 7 .9

Flint energy services 7 .1

aastra technologies 6 .6

transcontinental inc . 4 .1

Mullen transportation inc . 4 .0

richelieu Hardware 4 .0

reitmans (Canada) ltd . 4 .0

equitable Group inc . 4 .0

axcan pharma inc . 3 .7

Gildan activewear 3 .4


DFS GIF – SmAll CAp – BISSETT

Objective and Strategy of the Fundto provide investors with long-term capital appreciation . the Fund invests mainly in shares of Canadian companies with small to medium market capitalizations which are expected to provide above-average returns .

Main Features• Diversified portfolio comprising the securities of companies with between

$100 million and $2 .5 billion capitalization• targets companies with proven management and a long-term growth plan

Portfolio Managers• Christopher D . Fernyc, Co-lead Manager . industry experience: 6 years .• ralph lindenblatt, Co-lead Manager . industry experience: 9 years .


Benchmark IndexBMo nB small Cap

Fonds de sociétés à petite capitalisation BissettBissett Small Cap Fund

Canadian equity 11 .0% Financials 28 .0% energy 13 .2% industrials 4 .8% Materials 9 .1% information technology 25 .9% Consumer Discretionary 3 .0% Consumer staples 0 .9% telecommunication services 3 .7% Health Care



26

the Funds


Canadian equity


Underlying Fund northwest specialty equity Fund












series 5 17 .41 24 .47 21 .99 – –



Description %


Cae inc . 6 .9

transat a .t ., inc . 5 .4

petrobank energy and resources 5 .1

linamar Corporation 3 .9

paramount resources 3 .3

anvil Mining 3 .0

niko resources 2 .6

Home Capital Group inc . 2 .6

loblaw Companies 2 .1


DFS GIF – SpECIAlITy EQuITy – norThWEST

Objective and Strategy of the Fundto achieve capital appreciation over the longer term by investing primarily in the equity of smaller, fast growing Canadian companies with small market capitalizations under a billion dollars . the Fund invests primarily in common shares and other equity securities issued by companies that are financially strong and have distinct competitive advantages at relative valuations .

Main Featuresuses a value style management to uncover smaller capitalized companies with strong fundamentals and a demonstrated ability to grow

Portfolio Managers• peter Harrison, senior vice-president, Canadian equity, Montrusco Bolton .

More than 25 years of investment experience .• Wayne Deans, Deans Knight Capital Management . More than 28 years of

investment experience .


Benchmark IndexBMo nB small Cap

Fonds Spécialisé Actions NordOuestNorthWest Specialty Equity

Canadian equity 5 .5% Financials 22 .0% energy 0 .6% utilities 21 .8% industrials 12 .8% Materials 0 .9% information technology 12 .5% Consumer Discretionary 4 .3% Consumer staples 5 .4% Health Care



the Funds

27


Foreign equity




series 5 0 .47 12 .13 6 .99 5 .37 –



Description %

total sa 2 .9

royal Bank of scotland Group 2 .7

sampo oyJ 2 .1

Munich reinsurance (reG) 2 .0

British american tobacco plc 2 .0

Bank of america Corporation 1 .9

Baloise Holding (reG) 1 .9

nippon oil Company 1 .8

nestlé sa 1 .7

tenaga nasional Berhad 1 .7


Fund Manager Fidelity

Underlying Fund Fidelity Global Fund

Asset Category Global equity








DFS GIF – GloBAl – FIDElITy

Objective and Strategy of the Fundto achieve long-term capital growth by investing primarily in equity securities of companies anywhere in the world while remaining diversified with respect to major geographic regions, capitalizations, sectors, styles, and individual holdings .

Main Features• investment strategy based on growth opportunities, earnings estimates and

quality of management• Geographical allocation based on two regions: united states and international• Bottom-up approach



Benchmark IndexMsCi all-Country World Free (CaD)

Fonds Mondial FidelityFidelity Global Fund

international equity 9 .5% pacific Basin (except Japan) 2 .9% Canada 43 .0% united states 9 .6% Japan 20 .0% europe

(except united Kindom) 11 .2% united Kingdom 1 .7% others



28

the Funds


Foreign equity

Fund Manager alliance Bernstein

Underlying Fund DFs Bernstein Global equity value Fund

Asset Category Global equity











series 5 -1 .28 19 .81 9 .32 6 .64 –



Description %

General electric Company 1 .8

Münchener rückversicherungs-Gesellschaft 1 .4

Citigroup 1 .3

JpMorgan Chase & Company 1 .3

renault 1 .3

allianz aG 1 .2

Chevrontexaco Corporation 1 .2

inG Groep nv 1 .2

total sa 1 .1

BasF aG npv 1 .1

DFS GIF – GloBAl EQuITy – AllIAnCEBErnSTEIn

Objective and Strategy of the Fundto achieve long-term capital growth by investing primarily in attractively-valued common stocks of american, european, and asian corporations .

Main Features • Control of the level of volatility of return relative to the overall stock markets• Maintains a strong geographic diversification• emphasis on finding under-valued, large cap common stocks within each

economic sector

Portfolio Managera management team averaging more than 20 years of industry experience .


Benchmark IndexMsCi World

3 .8% Canadian equities 44 .4% american equities

international equity 3 .3% pacific Basin (except Japan) 11 .3% Japan 21 .0% europe

(except united Kingdom) 12 .3% united Kingdom 3 .7% others


Fonds d’actions mondiales de valeur BernsteinBernstein Global Equity Value Fund


the Funds

29


Fund Manager uBs

Underlying Fund DFs uBs u .s . large Cap equity

Asset Category us equity



MER * 2 .75% + additional Fee – Guarantee 75/100 i 0 .35% additional Fee – Guarantee 100/100 r 0 .45% additional Fee – GMWB n .a








series 5 -3 .25 12 .19 2 .64 1 .99 2 .59



Description %

Citigroup 3 .9

Morgan stanley 3 .6

Wells Fargo & Company 3 .1

Microsoft Corporation 3 .0

exelon Corporation 2 .8

intel Corporation 2 .7

Wyeth 2 .6

General electric Company 2 .5

Johnson Controls 2 .2

allergan, inc . 2 .1

DFS GIF – AmErICAn EQuITy – uBS

Objective and Strategy of the Fundto provide investors with long-term capital growth . the Fund invests primarily in the common shares of medium and large corporations located in the united states .

Main Features • accent on fundamental research• portfolio comprises 70 to 90 securities of medium and large capitalizations

Portfolio Managera management team averaging more than 16 years of industry experience .

Management StyleDiversified

Benchmark Indexrussell 1000

Fonds d’actions américainesAmerican Equity fund

american equity 21 .2% Financials 5 .8% energy 5 .7% utilities 11 .5% industrials 15 .1% information technology 15 .6% Consumer Discretionary 4 .1% Consumer staples 3 .7% telecommunication services 15 .0% Health Care



30

the Funds


Foreign equity

Fund Manager allianceBernstein


Asset Category international equity











Description %

vodafone Group plc 2 .4

total sa 2 .2

toyota Motor Corporation 2 .0


e .on aG 1 .9

renault 1 .9


allianz aG 1 .7

inG Groep nv 1 .7

ente nazionale idrocarburi spa 1 .7


DFS GIF – InTErnATIonAl EQuITy – AllIAnCEBErnSTEIn

Objective and Strategy of the Fundto provide investors with long-term capital growth based on an internationally diversified equity portfolio by investing primarily in the common shares of large corporations with attractive relative valuations located in europe and the Far east .

Main Features• Fundamental research, bottom-up approach• Focuses on stocks of companies the price of which is relatively low in view of

their long-term profits• Diversification by sector of activity and by country



Benchmark IndexMsCi eaFe (CaD)

Fonds Actions InternationalsInternational Equity

international equity 10 .1% Germany 4 .0% australia 2 .3% spain 12 .4% France 3 .9% italy 24 .7% Japan 5 .1% netherlands 24 .0% united Kingdom 4 .3% switzerland 9 .2% others


the Funds

31


Fund Manager allianceBernstein


Asset Category european equity











Description %

Futures contracts – euro stoXX 50 28 .4

Futures contracts – Ftse 100 19 .4

Futures contracts – sWiss MarKet 5 .0

royal Dutch shell 1 .5

vodafone Group plc 1 .4

total sa 1 .3


allianz aG 1 .1

inG Groep nv 1 .1

Bp plc 1 .1


DFS GIF – EuropEAn EQuITy – AllIAnCEBErnSTEIn

Objective and Strategy of the Fundto provide investors with long-term capital growth . the Fund invests its assets in shares of medium and large corporations located in european countries .

Main Features• Country allocation• Bottom-up approach



Benchmark IndexMsCi europe (CaD)

Fonds d’actions européennesEuropean Equity Fund european equity

7 .7% Germany 0 .8% austria 0 .6% Belgium 0 .4% Denmark 1 .3% spain 1 .6% Finland 7 .6% France 2 .6% italy 4 .8% netherlands 0 .4% Greece 14 .7% united Kingdom 1 .3% sweden 1 .2% switzerland

international equity 0 .9% others

52 .8% european Futures Contracts 1 .3% Cash/Money Market


32

the Funds


Foreign equity


Underlying Fund Mclean Budden american equity Fund

Asset Category us equity











series 5 0 .09 14 .12 2 .49 3 .81 –



Description %

Citigroup 4 .1

Microsoft Corporation 3 .7

schlumberger ltd . 3 .7

american international Group 3 .3

Cisco systems, inc . 3 .1

Burlington northern santa Fe Corporation 2 .9

intel Corporation 2 .7

alcoa inc . 2 .7

apache Corporation 2 .6

Cvs Caremark Corporation 2 .5


DFS GIF – AmErICAn EQuITy – mclEAn BuDDEn

Objective and Strategy of the Fundto outperform the s&p 500 . the Fund invests in equity securities of corporations located in the united states .

Main Features• Focuses on companies that comprise the s&p 500 index and whose earnings

grow at an above-average rate• Concentrated portfolio based on a bottom-up approach and risk control



Benchmark Indexs&p 500 (CaD)

Fonds d’actions américaines de croissance McLean BuddenMcLean Budden American Equity Growth Fund

american equity 13 .7% Financials 10 .6% energy 3 .4% utilities 16 .3% industrials 3 .7% Materials 17 .7% information technology 5 .3% Consumer Discretionary 15 .0% Consumer staples 2 .9% telecommunication services 9 .2% Health Care



34

the Funds

the Managers

Founded in 1996, Addenda Capital inc. has always been committed to growing the assets entrusted to it . at addenda, long-term vision is combined with an operational flexibility that makes it possible to take advantage of market fluctuations . through its qualified multi-disciplinary team comprised of managers, analysts, traders and economists, addenda Capital is in a position to take up meaningful challenges in an effort to generate substantial earnings for its clients . addenda’s investment philosophy is based on a dynamic management style and on their proven ability to anticipate the movement of interest rates .

AllianceBernstein is a leader in institutional investment management research, combining more than three decades worth of alliance Capital Management Holding lp expertise in growth investing and sanford C . Bernstein & Co ., llC excellence in value management . the firm’s assets under management total over us $488 billion, us $280 billion of which are managed for institutional clients around the world . their team of 294 analysts operating in 20 countries is one of the most highly regarded in the industry, focusing on: investment style focused on growth (alliance) and value (Bernstein), unparalleled strength in investment research and strong management discipline and special attention to fundamental valuations .

Bissett Investment Management’s investment philosophy focuses on managing and controlling risk to provide above-average returns within a lower-than-average volatility structure as compared with similar funds in the industry . its proactive investment style is based on a bottom-up approach with a bias towards growth at a reasonable price, targeting companies with above-average earnings and dividends and whose stocks are bought at moderate price-earnings ratios .

Desjardins Funds are designed and administered by the Fédération des caisses Desjardins du Québec, a subsidiary of Desjardins Group, Canada’s largest integrated cooperative financial group, a financial heavyweight with over $135 billion in assets under management and over a century of experience, Desjardins Funds rest on both Desjardins’ strength and experience, enhanced by the expertise of national and international partners .

Fidelity Investments is the world’s largest mutual fund company with global investment expertise . its clearly defined investment philosophy focuses on four major principles: individual security selection, extensive fundamental research, manager-driven decision-making, and an adherence to proven investment disciplines . Fidelity’s “bottom-up” style of investment management begins by focusing on the fundamental strengths of companies, their industry sectors, and finally the countries or markets where they do business . Fidelity believes that good performance is built one investment at a time .

With over $20 billion in assets under management, Fiera Capital is one of Canada’s leading independent investment management firms . its diverse clientele is made up of institutional investors, mutual funds, charitable organizations and private clients . Fiera offers competitive and innovative investment strategies that are driven by its unique expertise in active and structured fixed income, active equity, quantitative techniques and financial engineering . Fiera is controlled and owned by its principals with Desjardins asset Management inc . holding a 23% interest in the firm .

Franklin Templeton Investments, is a wholly-owned subsidiary of Franklin resources, inc . which is a global investment organization . Franklin templeton provides global and Canadian investment, shareholder and distribution services to the products and institutional accounts, as well as separate account management services .

Jarislowsky Fraser is a registered investment counselling firm, managing pension funds, pooled funds, endowment funds and, corporate and private portfolios for clients in north america and europe . the firm’s philosophy is founded upon conservative, time proven principles of fundamental investing . it constructs diversified, high quality portfolios that are designed to achieve long-term growth . Jarislowsky Fraser minimizes portfolio risk by investing in proven, well-managed, high quality companies that are financially sound .

the Funds

35

Based on the principle that a consistent approach will produce consistent results, McLean Budden encourages its portfolio managers to work as a team . its management style focuses on fundamental analysis, which is carried out by teams responsible for setting up benchmark portfolios . Mclean Budden’s investment philosophy focuses on large cap companies with a stable earnings-growth pattern and a healthy balance sheet that are headed by a solid management team .

Northwest was founded in 1997 by president and C .o .o . Michael Butler in partnership with First asset Management inc . in september 2003, northwest became a wholly-owned subsidiary of northwest asset Management inc ., which is a wholly-owned subsidiary of the Fédération des caisses Desjardins du Québec . northwest is one of the fastest growing fund companies in Canada . northwest has achieved exceptional long term performance by staying disciplined to its investment philosophy, which is to strive for better returns with less risk .

UBS Global Asset Management is a business group of uBs, one of the world’s leading financial services groups . uBs’s historical roots stretch back more than a century . the separate asset management business group was formed after the merger of union Bank of switzerland and the swiss Bank Corporation in 1998 . uBs’s price/intrinsic value investment philosophy is at the heart of its core investment management business . Discrepancies between market price and intrinsic value arise from market behaviour and market structure providing opportunities to outperform . their performance results from the disciplined application of high quality propriety research generated on a global basis .

Fund monitoring Committeeat the heart of the monitoring program is our Fund Monitoring Committee, which is composed of investment experts, actuaries, and members of senior management . the committee’s mandate is to regularly review our fund offer to ensure that the investment managers are meeting their performance objectives in keeping with their stated management style .

Selection of our funds and funds managers

Desjardins Financial security is committed to providing you with the right combination of investment options . When screening for new managers, we determine the objectives and constraints that managers will face, and then seek managers who are most likely to satisfy the objectives and overcome the constraints . it is imperative that their strategies and risk-return profiles correspond to the needs of plan sponsors, and to the objectives of the investment option involved while also respecting our guidelines and investment policies .

We examine a combination of factors, such as the successful application of the manager’s philosophy under various market conditions, adherence to the portfolio’s investment philosophy, and long-term performance . this enables us to ensure that we select only top-quality fund managers with complementary management styles with a view to diversifying our family of funds .

36

important notice

Glossary

Fixed Income Strategy

Credit Spread

this strategy is used by managers looking for bonds with an advantageous risk premium, thereby earning higher returns .

Interest Rate Forecasting

interest rate forecasting is a method that takes advantage of interest rate fluctuations . When managers forecast an interest rate rise, they reduce the average maturity of the bond portfolio and, conversely, increase it when a drop in interest rates is anticipated . recall that the value of a bond varies inversely in relation to interest rate movements and that the longer the average maturity of a portfolio, the more the value will be affected by these movements .

management Style

Value Style

portfolios whose management is value-oriented generally comprise securities with a price earnings ratio lower than that of their benchmark index . this approach allows managers to concentrate on the companies’ fundamentals .

Growth at a Reasonable Price (GARP) Style

this style gives special weight to the stocks of companies which show, or which are anticipated to show, rapid growth in profit and which trade at relatively low prices .

Growth Style

Growth-oriented portfolios consist, for the most part, of stocks of companies whose profit growth is superior to that of the companies included in their benchmark index . the aim of the manager who uses this approach is to obtain appreciable long-term gains .

any amount that is allocated to a guaranteed investment fund is invested at the risk of the contractholder and may increase or decrease in value .investment fund categories, as indicated in each fund description, are those established by the investment Funds standards Committee (iFsC) .

interest and dividend income are reinvested in the Funds thereby helping to increase the Funds’ returns . eligibility for rrsps and other registered plans of the Desjardins Financial security Guaranteed investment Funds are in accordance with the current legislation .

past performance is no assurance or indicator as to future returns . the rates of return indicated are historical annual compound total returns, net of management fees . they include changes in net asset value, but do not include any sales, redemption or any other charges payable by an investor, which would reduce returns .

there is no assurance that any Fund will achieve its investment objective . each Fund’s performance should be considered in light of the investment objective and policies described in the Contract and information Folder . per unit calculations are based on prices determined at the end of the business day and are subject to change without notice .

every effort has been made to ensure that facts and data contained herein are accurate at the time of publication . However, Desjardins Financial security cannot guarantee that they are accurate or complete or that they will be current at all times and accepts no responsibility for any loss arising from the use of or reliance on any information contained herein .

37

1

2

3

5

6

8

9

10

11

14

15

17

19

20

21

22

23

24

25

26

27

2829

30 31

7

16

18

4

13

12

DFS GIF – Income – Fiera*

DFS GIF – Canadian Bond – Addenda*

DFS GIF – Global Balanced – Jarislowsky Fraser*

DFS GIF – Global High Income – Multi-managers*

DFS GIF – Balanced Growth – McLean Budden*

DFS GIF – Growth and Income – Northwest*

DFS GIF – Canadian Balanced – Fiera*

DFS GIF – Canadian Balanced – Bissett*

DFS GIF – Dividend Income – Bissett*

DFS GIF – Canadian Dividend – Fiera*

DFS GIF – Canadian Equity – Jarislowsky Fraser*

DFS GIF – Global – Fidelity*

DFS GIF – Global Equity – AllianceBernstein*

DFS GIF – Canadian Equity – Fiera

DFS GIF – American Equity – UBS

DFS GIF – Canadian Equity – Bissett

DFS GIF – International Equity – AllianceBernstein

DFS GIF – European Equity – AllianceBernstein

DFS GIF – Specialty Growth – Northwest

DFS GIF – Canadian Equity Growth – McLean Budden

DFS GIF – American Equity – McLean Budden

DFS GIF – Small Cap – Bissett

DFS GIF – North American Small Company – Fiera

DFS GIF – Specialty Equity – Northwest

DFS GIF – Money Market*

Higher return

Higher volatility

Income Portfolios of FundsCanadian Equity Foreign EquityBalanced and Asset Allocation

DFS GIF – Growth and Income –

Northwest Quadrant*

DFS GIF – Diversified

Income – Quotential*

DFS GIF – Balanced

Income – Quotential*

DFS GIF –

Growth – Quotential*

DFS GIF –

Ultimate Equity –

Multi-managers*

DFS GIF – Balanced

Growth – Quotential*

The Desjardins Financial Security Guaranteed Investment Funds

Deposits made in the Helios Contract are protected by Assuris (assuris.ca).

* These funds are available for the GMWB.

desjardinsfinancialsecurity.com/helios

0723

4e05

(07-

10)

the Desjardins Financial security Guaranteed investment Funds offer:• Full array of funds;

• seasoned managers;

• exclusive managers (institutional);

• all benefits of the Helios Contract .

Deposits made in the Helios Contract are protected by assuris (assuris .ca) .

please refer to the glossary contained in the Contract and information Folder for a definition of all capitalized terms used in this document .

the Contract and information Folder contains important information on the Desjardins Financial security Guaranteed investment Funds plan – Helios and the Desjardins Financial security Guaranteed investment Funds . please read it carefully before investing . Helios is a trademark owned by Desjardins Financial security life assurance Company . the Desjardins Financial security Guaranteed investment Funds are established by Desjardins Financial security life assurance Company .

Funds

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The Desjardins Financial Security Guaranteed Investment...

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Transcript of The Desjardins Financial Security Guaranteed Investment...