Industrial Alliance Launches A New Category of Investment Funds Based On Asset Allocation And Automatic Monthly Rebalancing

QUEBEC CITY, Feb. 3, 2003 – Industrial Alliance Insurance and Financial Services and its Vancouver subsidiary, Industrial Alliance “Pacific” Insurance and Financial Services, are pleased to announce the addition of five new investment funds to their existing line of funds for the 2003 RRSP campaign: Focus Funds. These funds are designed to meet the needs of all types of investors and contain two essential advantages over similar products: optimal asset allocation, adapted to each investor’s profile, and automatic monthly rebalancing of the portfolio, in order to respect the original profile at all times.

“Focus Funds are specially designed for investors who are seeking a well-diversified portfolio that will provide them with an unquestionable advantage: peace of mind,” states Denis Ricard, Assistant Vice-President, Marketing, at Industrial Alliance. “In an environment of substantial financial market fluctuations, selecting and readjusting asset classes on one’s own requires a great deal of time and attention. With Focus Funds, our clients no longer have to worry about these readjustments. Asset allocation is revised by our specialists, who devote all of their energy to the daily management of funds, distributing them according to each client’s investment objectives and risk tolerance. This results in an optimum balance and a better long-term return.”

In order to guarantee results that respond to clients’ wishes at all times, Industrial Alliance advisors and specialists determine, invest and manage investments made in Focus Funds according to a three-step process:

  • A WELL-DESIGNED TOOL: “YOUR INVESTOR PROFILE”
    First, since the weighting of the various Focus Funds assets varies according to each client’s risk tolerance level, it is essential to properly determine the investment objectives of each one. To do this, the client is asked to complete a new form, “Your Investor Profile”. This questionnaire allows the Company to divide its clients according to five categories of investors, from prudent to aggressive.
  • A PROVEN INVESTMENT STRATEGY: ASSET ALLOCATION
    Once the investor profile has been established, the Focus Fund that best corresponds to the client’s needs is selected from the five proposed funds. Regardless of the profile the client corresponds to, our specialists emphasize diversification for each Focus Fund, which are composed of seven underlying funds, distributed between three asset classes: bonds, Canadian equity and global equity. The fund that best suits each client is essentially determined by the return the client hopes to obtain as compared to their tolerance to risk. Therefore, a portfolio that corresponds to a “prudent” investor will contain, relatively speaking, more bond funds than an “aggressive” investor portfolio. It is the Company’s managers rather than the clients themselves who take care of distributing the invested amounts between the different fund categories. This strategic allocation ensures optimal fund performance, regardless of the economic environment.
  • AN ADDED ADVANTAGE: AUTOMATIC MONTHLY REBALANCING
    Finally, the automatic monthly rebalancing of the invested amounts, exclusive on the market, ensures that the client’s wishes are always respected in the months and years that follow the initial investment. Once the amounts are invested, financial market fluctuations may result in a considerable variation in the relative weighting of each component of a fund. That is why, each month, the managers rebalance the capital between the different funds according to the initially selected proportions, at no additional cost and with no forms to complete. The monthly rebalancing allows clients to hold an investment, based on their investor profile, that constantly reflects their investment objectives.

About The Industrial Alliance Group

The Industrial Alliance Group is among the most solid financial institutions in the country, where it is an industry leader in insurance and financial services. The Group has operations across Canada through Industrial Alliance (Quebec City), Industrial Alliance “Pacific” (Vancouver) and National Life (Toronto). The seventh largest life and health insurer in Canada, the Group insures over 1.5 million Canadians, employs more than 2,000 people and administers $16.3 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange, under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada. The address of the Company’s web site is www.inalco.com.

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