NOTICE – UPCOMING COMMUNICATION TO ADVISORS / Changes to the income distribution method of some funds

Changes to the income distribution method of some funds

To harmonize our management practices for all SSQ Funds, income from the following funds will no longer be distributed monthly:

CI Cambridge Canadian Asset Allocation
CI Signature Global Income and Growth
Guardian Conservative Monthly Income
Guardian Monthly Income

153
154
156
157

The income will now be held and reinvested in funds on behalf of shareholders and thus contribute to increasing the fund unit value. However, the income from funds will be attributed to shareholders for tax purposes each year and will lead to an increase in the average cost of your units. The eventual capital gain on disposal will be reduced accordingly.

Investors will stop receiving additional units reinvested in their contract and in return, the unit value of their investment will not be reduced by the amount equivalent to the final distribution.

The final income distribution will take place on November 29, 2019.

Here is an example of this change:

Cash payment of your distributed income

In light of this change, the cash payment of distributed income into the shareholders bank account will no longer be available. However, in order for them to continue receiving amounts periodically, SSQ Insurance will implement a monthly redemption equivalent to the distribution amount. This periodic redemption will be implemented on the 24th day of each month and may be cancelled at any time.

IMPORTANT: For customers who have a loan with another provider related to an investment in SSQ funds, there will be no periodic redemption of units. Your customers will need to ensure that they have the funds available to honour their monthly payments to the loan provider.

At the beginning of October, a memo similar to this one will be sent to your customers who chose to receive a cash payment of their distributed income. All SSQ Insurance customers will be informed of this change with their next investment statements.

Should you have any questions, please contact your SSQ Insurance representative.