SunWise Essential Bundles — Overview

issued by Sun Life Assurance Company of Canadamanaged by CI Investments Inc.

SunWise Essential BundlesSunWise Essential Bundles maximize your equity exposure

Here’s how they workAll equity funds hold a certain amount of cash. With SunWise Essential Bundles, we consider the cash in the equity fund to be part of the fixed-income weighting. That means that there is no duplication of income assets and no cash drag on the Bundle. Here are three examples:

Here’s how they performSunWise Essential Bundle

If the Bundles had existed over the past nine years, they would have outperformed the underlying funds because the equity exposure is constantly maximized at 70% by rebalancing monthly. In this example, we created a hypothetical Bundle which is based on the underlying mutual funds and rebalanced monthly. It outperformed a combined portfolio of underlying funds by nearly 6% over nine years.

SunWise Essential Low Volatility Bundle

In this example, we created a hypothetical Low Volatility Bundle which is based on the underlying mutual funds and rebalanced monthly. The equity exposure is constantly maximized at 55% by rebalancing monthly. Lower equity exposure means that growth for the Low Volatility Bundle is more moderate than the 70/30 Bundle over a nine-year period. However, in 2008 during the financial crisis, the loss for the Low Volatility Bundle was about half that of the 70/30 Bundle (a loss of $34,585 vs. $66,788). Low Volatility Bundles help to mitigate fluctuations in the market value of a portfolio.

SunWise Essential Bundles are based on a portfolio strategy that combines one or two equity funds with an income fund to maximize the growth potential of your investment in SunWise Essential Series. Every month, the Bundles are rebalanced to provide the maximum 70% equity exposure permitted for Income Class and Estate Class or 55% equity exposure for the Low Volatility Bundles. Unlike other managed solutions, where asset allocation is performed at the fund level, we rebalance based on the securities in each underlying fund.

$210,000

$190,000

$170,000

$150,000

$130,000

$110,000

$90,000

$70,000Dec-01 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10Dec-02

SunWise Essential Bundle (hypothetical)Underlying funds with 70/30 asset mix

$195,932

$185,182

The fund allocation of the Bundle mix is determined by the underlying security allocation of the equity fund(s).

$210,000

$190,000

$170,000

$150,000

$130,000

$110,000

$90,000

$70,000Dec-01 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10Dec-02

SunWise Essential Low Volitility Bundle (hypothetical)Underlying funds with 55/45 asset mix

$170,169

$166,350

Equity Fund SunWise Essential Bundle

Equity Fund SunWise Essential Bundle

70%Equities

30%Cash

100%Equities 30

% In

come Fund

100% Equity Fund

70% Equity Fu

nd

the Bundle is:

the Bundle is:

If the Equity Fund is:

If the Equity Fund is:

To provide 70% equity exposure

To provide 70% equity exposure

10000 % Equitytt

Fund

70% EquityttFu

nd

Equity Fund SunWise Essential Low Volatility Bundle

100%Equities

45%

Inco

me F

und

55% Equ

ity F

und

the Bundle is:

If the Equity Fund is:

To provide 55% equity exposure

55%Eq

uitytt

Fund

Example #1Equity Fund SunWise Essential Bundle

Equity Fund SunWise Essential Bundle

70%Equities

30%Cash

100%Equities 30

% In

come Fund

100% Equity Fund

70% Equity Fu

nd

the Bundle is:

the Bundle is:

If the Equity Fund is:

If the Equity Fund is:

To provide 70% equity exposure

To provide 70% equity exposure

10000 % Equitytt

Fund

70% EquityttFu

nd

Equity Fund SunWise Essential Low Volatility Bundle

100%Equities

45%

Inco

me F

und

55% Equ

ity F

und

the Bundle is:

If the Equity Fund is:

To provide 55% equity exposure

55%Eq

uitytt

Fund

Example #2

Equity Fund SunWise Essential Bundle

Equity Fund SunWise Essential Bundle

70%Equities

30%Cash

100%Equities 30

% In

come Fund

100% Equity Fund

70% Equity Fu

nd

the Bundle is:

the Bundle is:

If the Equity Fund is:

If the Equity Fund is:

To provide 70% equity exposure

To provide 70% equity exposure

10000 % Equitytt

Fund

70% EquityttFu

nd

Equity Fund SunWise Essential Low Volatility Bundle

100%Equities

45%

Inco

me F

und

55% Equ

ity F

und

the Bundle is:

If the Equity Fund is:

To provide 55% equity exposure

55%Eq

uitytt

Fund

Example #3

These illustrations are based on comparisons between the hypothetical SunWise Essential CI Harbour Segregated Bundle and the hypothetical SunWise Essential CI Harbour Low Volatility Segregated Bundle and independent investments of 70% Harbour Fund and 30% Signature Corporate Bond Fund for the first example and 55% Harbour Fund and 45% Signature Corporate Bond Fund for the second example. Historical data are estimated, based on a cash allocation in Harbour Fund of approximately 20%. No rebalancing was performed; there are no insurance fees charged; and actual monthly data may vary.

Source: CI Investment Consulting

Key Features:

y SunWise Essential Bundles are based on funds which provide diversification by asset class, geographic region and economic sector. They are available with all SunWise Essential Series Classes – Income, Investment and Estate.

y In addition, SunWise Essential CI Bundles incorporate the benefits of CI Corporate Class funds, which allow for switches among funds without tax consequences, the receipt of tax-efficient capital gains or Canadian dividends from traditional income funds, and deferral of tax on distributions, given the low dividend payout of the funds.

Segregated Bundles

Segregated Bundles are a combination of an equity fund with a conservative bond fund. Segregated Bundles are suitable for anyone who wants the stability of a pure bond fund combined with the growth potential of an equity fund.

Segregated Diversified Bundles

Segregated Diversified Bundles are a combination of an equity fund with a diversified income fund that invests in income-producing equities such as REITs and income trusts, as well as bonds. Segregated Diversified Bundles are suitable for anyone looking for higher-yielding income from alternative sources combined with an equity fund.

Low Volatility Bundles

Low Volatility Bundles are a combination of an equity fund with a conservative income fund. Low Volatility Bundles are suitable for anyone who wants to achieve capital preservation with the potential for some growth, while being exposed to lower than average volatility.

The Bundle has a target allocation of 70% equity and 30% conservative bonds.

The Bundle has a 70% equity/30% income asset allocation and a target fund allocation of 50% equity and 50% high-yielding income.

The Bundle has a target allocation of 55% equity and 45% to income.

SunWise Essential Bundles

Harbour Advisors is led by Chief Investment Officer Gerry Coleman, who has managed money for institutional and mutual fund investors for over 40 years. His reputation as one of Canada’s premier fund managers was acknowledged by the Canadian Investment Awards by his selection as Fund Manager of the Year in 2001 and 2008.

Signature Global Advisors, CI Investments’ largest in-house portfolio management group, is led by Chief Investment Officer Eric Bushell. Signature has won numerous Canadian Investment Awards for its funds and Mr. Bushell was named Morningstar Fund Manager of the Year in 2009 and Morningstar Fund Manager of the Decade in 2010.

Cambridge Advisors is lead by Chief Investment Officer Alan Radlo, who has more than 25 years of experience in the investment industry. He has a successful track record of consistently rewarding investors with strong long-term performance.

Black Creek Investment Management is led by Bill Kanko and Richard Jenkins. Over the years they have proven that quality active management adds value to a portfolio. They believe that their ability to develop proprietary investment ideas will grow wealth for their clients. Their goal is to provide capital growth over the long term through investment in common equities, and to achieve superior returns relative to equity market averages in general and to competitors.

Sun Life Global Investments (Canada) Inc. is a Canadian investment management firm wholly owned (indirectly) by Sun Life Financial Inc. MFS Investment Management is a sub-advisor for Sun Life Global Investments (Canada) Inc. Sun Life Financial Inc. is a global international financial services organization providing a diverse range of protection and wealth accumulation products and services, as well as investment products to individuals and institutions.

Dynamic Funds is a division of Goodman & Company, Investment Counsel Ltd., a subsidiary of DundeeWealth Inc. Goodman & Company offers a wide range of wealth management solutions through financial advisors. These include the mutual funds and hedge funds of Dynamic Funds, the portfolio solutions of the Marquis Investment Program, and the high-net worth investment counsel of Dundee Wealth Invesment Counsel. DundeeWealth Inc. is a wholly owned subsidiary of The Bank of Nova Scotia and part of the Bank’s Global Wealth Management business line, with $81.9 billion in fee earning assets.

Synergy funds are managed by Picton Mahoney Asset Management, a portfolio management team led by David Picton and Michael Mahoney. Both have built their investment careers using quantitative analysis as the foundation for their success. Picton Mahoney maintains a disciplined focus on fundamental change, coupled with strong risk controls and portfolio construction techniques.

RBC Global Asset Management Inc. is an indirect, wholly owned subsidiary of Royal Bank of Canada. It provides a broad range of investment services to investors through mutual funds from its two fund families, RBC Funds® and PH&N Funds, pooled funds and separately managed portfolios.

Fidelity’s Disciplined equity approach neutralizes sector risk relative to the benchmark and instead focuses on fundamental, bottom-up research as the primary source of excess return. Fidelity’s NorthStar® Fund has an open mandate to seek the best ideas, wherever they may lie. Fidelty’s True North® Fund aims to deliver superior long-term growth potential through its freedom to pursue opportunities throughout the Canadian market.

Portfolio Managers

Fund Name Current Underlying Funds

Segregated Bundles

SunWise Essential CI American Value Segregated Bundle CI American Value Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Black Creek International Equity Segregated Bundle SunWise Essential CI Black Creek International Equity Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Black Creek Global Leaders Segregated Bundle SunWise Essential CI Black Creek Global Leaders Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Cambridge American Equity Segregated Bundle Cambridge American Equity Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Cambridge Canadian Equity Segregated Bundle Cambridge Canadian Equity Corporate Class Signature Corporate Bond Corporate Class

SunWise Essential CI Cambridge Global Equity Segregated Bundle Cambridge Global Equity Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Canadian Investment Segregated Bundle CI Canadian Investment Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Global Segregated Bundle CI Global Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Harbour Segregated Bundle Harbour Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Signature Select Canadian Segregated Bundle Signature Select Canadian Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Signature Dividend Segregated Bundle Signature Dividend Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Synergy Canadian Segregated Bundle Synergy Canadian Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential CI Synergy Global Segregated Bundle Synergy Global Corporate ClassSignature Corporate Bond Corporate Class

SunWise Essential Bundles

Fund Name Current Underlying Funds

Segregated Diversified Bundles

SunWise Essential CI Cambridge Segregated Diversified Bundle Cambridge Canadian Equity Corporate ClassSignature High Income Corporate Class

SunWise Essential CI Harbour Segregated Diversified Bundle Harbour Corporate ClassSignature High Income Corporate Class

Low Volatility Bundles

SunWise Essential CI Cambridge Canadian Equity Low Volatility Segregated Bundle Harbour Corporate ClassSelect Income Advantage Managed Corporate Class

SunWise Essential CI Harbour Low Volatility Segregated Bundle Signature Select Canadian Corporate ClassSelect Income Advantage Managed Corporate class

SunWise Essential CI Signature Select Canadian Low Volatility Segregated Bundle Cambridge Canadian Equity Corporate ClassSelect Income Advantage Managed Corporate Class

Third Party Bundles

SunWise Essential Dynamic Canadian Value Segregated Bundle Dynamic Canadian Value ClassDynamic Global Dividend Value ClassDynamic Canadian Bond Fund

SunWise Essential Dynamic Global Value Segregated Bundle Dynamic Global Value FundDynamic Global Dividend Value ClassDynamic Canadian Bond Fund

SunWise Essential Fidelity American Disciplined Equity® Segregated Bundle Fidelity American Disciplined Equity® FundFidelity Canadian Bond Fund

SunWise Essential Fidelity Disciplined® Segregated BundleFidelity Canadian Disciplined Equity® FundFidelity Canadian Bond FundFidelity Global Disciplined Equity® Fund

SunWise Essential Fidelity NorthStar® Segregated Bundle Fidelity NorthStar® FundFidelity Canadian Bond Fund

SunWise Essential Fidelity True North® Segregated Bundle Fidelity True North® FundFidelity Canadian Bond Fund

SunWise Essential RBC Canadian Dividend Segregated Bundle RBC Canadian Dividend FundPhillips, Hager & North Bond Fund

Sun Life Global Investment Bundles

SunWise Essential Sun Life MFS Global Growth Segregated Bundle MFS Global Growth FundSignature Corporate Bond Fund

SunWise Essential Sun Life MFS Global Value Segregated Bundle MFS Global Value FundSignature Corporate Bond Fund

SunWise Essential Sun Life MFS International Growth Segregated Bundle MFS International Growth FundSignature Corporate Bond Fund

SunWise Essential Sun Life MFS International Value Segregated Bundle MFS International Value FundSignature Corporate Bond Fund

SunWise Essential Sun Life MFS U.S. Growth Segregated Bundle MFS U.S. Growth FundSignature Corporate Bond Fund

SunWise Essential Sun Life MFS U.S. Value Segregated Bundle Sun Life MFS U.S. Value FundSignature Corporate Bond Fund

Fund Codes

Income Class Investment Class Estate Class

Fund Name ISC DSC ISC DSC ISC DSC

SunWise Essential CI American Value Segregated Bundle 12739 12839 12139 12239 12439 12539

SunWise Essential CI Black Creek Global Leaders Segregated Bundle 12713 12813 12113 12213 12413 12513

SunWise Essential CI Black Creek International Equity Segregated Bundle 12746 12846 12146 12246 12446 12546

SunWise Essential CI Cambridge American Equity Segregated Bundle 12047 12097 12007 12057 12027 12077

SunWise Essential CI Cambridge Canadian Equity Low Volatility Segregated Bundle 12788 12888 12188 12288 12488 12588

SunWise Essential CI Cambridge Canadian Equity Segregated Bundle 12740 12840 12140 12240 12440 12540

SunWise Essential CI Cambridge Global Equity Segregated Bundle 12741 12841 12141 12241 12441 12541

SunWise Essential CI Cambridge Segregated Diversified Bundle 12742 12842 12142 12242 12442 12542

SunWise Essential CI Canadian Investment Segregated Bundle 12743 12843 12143 12243 12443 12543

SunWise Essential CI Global Segregated Bundle 12744 12844 12144 12244 12444 12544

SunWise Essential CI Harbour Low Volatility Segregated Bundle 12786 12886 12186 12286 12486 12586

SunWise Essential CI Harbour Segregated Bundle 12747 12847 12147 12247 12447 12547

SunWise Essential CI Harbour Segregated Diversified Bundle 12748 12848 12148 12248 12448 12548

SunWise Essential CI Signature Dividend Segregated Bundle 12751 12851 12151 12251 12451 12551

SunWise Essential CI Signature Select Canadian Low Volatility Segregated Bundle 12787 12887 12187 12287 12487 12587

SunWise Essential CI Signature Select Canadian Segregated Bundle 12750 12850 12150 12250 12450 12550

SunWise Essential CI Synergy Canadian Segregated Bundle 12753 12853 12153 12253 12453 12553

SunWise Essential CI Synergy Global Segregated Bundle 12754 12854 12154 12254 12454 12554

SunWise Essential Dynamic Canadian Value Segregated Bundle 12755 12855 12155 12255 12455 12555

SunWise Essential Dynamic Global Value Segregated Bundle 12756 12856 12156 12256 12456 12556

SunWise Essential Fidelity American Disciplined Equity® Segregated Bundle 12757 12857 12157 12257 12457 12557

SunWise Essential Fidelity Disciplined® Segregated Bundle 12758 12858 12158 12258 12458 12558

SunWise Essential Fidelity NorthStar® Segregated Bundle 12759 12859 12159 12259 12459 12559

SunWise Essential Fidelity True North® Segregated Bundle 12760 12860 12160 12260 12460 12560

SunWise Essential RBC Canadian Dividend Segregated Bundle 12761 12861 12161 12261 12461 12561

SunWise Essential Sun Life MFS Global Growth Segregated Bundle 12044 12094 12004 12054 12024 12074

SunWise Essential Sun Life MFS Global Value Segregated Bundle 12795 12895 12195 12295 12495 12595

SunWise Essential Sun Life MFS International Growth Segregated Bundle 12045 12095 12005 12055 12025 12075

SunWise Essential Sun Life MFS International Value Segregated Bundle 12794 12894 12194 12294 12494 12594

SunWise Essential Sun Life MFS U.S. Growth Segregated Bundle 12043 12093 12003 12053 12023 12073

SunWise Essential Sun Life MFS U.S. Value Segregated Bundle 12793 12893 12193 12293 12493 12593

1109-1310_E (12/11)

Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, is the sole issuer of the individual variable annuity contract providing for investment in SunWise Essential Series segregated funds. A description of the key features of the applicable individual variable annuity contract is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. ®CI Investments, the CI Investments design, Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Cambridge Advisors and Signature Global Advisors are registered trademarks of CI Investments Inc. ™Portfolio Series and Signature Funds are trademarks of CI Investments Inc. ®SunWise is a registered trademark of Sun LifeAssurance Company of Canada. Sun Life Global Investments (Canada) Inc. is part of the Sun Life Financial Group of companies. ®FidelityInvestments and the Fidelity design are registered trademarks of Fidelity Management & Research Co. ®Registered trademark of RoyalBank of Canada. RBC Global Asset Management is a registered trademark of Royal Bank of Canada. Used under license. ™TD Asset Management is a trademark of The Toronto-Dominion Bank, used under licence. Franklin Templeton Investments Quotential Program and Franklin Templeton Investments and design are registered trademarks of Franklin Templeton Investments Corp. Dynamic Funds® is a registered trademark of The Bank of Nova Scotia and division of Goodman & Company, Investment Counsel Ltd (“GCICL”). GCICL does not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise.

Sun Life Assurance Company of Canada

227 King Street SouthP.O. Box 1601 STN WaterlooWaterloo, Ontario N2J 4C5

2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I www.ci.comHead Office / Toronto416-364-1145 1-800-268-9374

Calgary 403-205-43961-800-776-9027

Montreal 514-875-0090 1-800-268-1602

Vancouver 604-681-3346 1-800-665-6994

Client Services English: 1-800-563-5181 French: 1-800-668-3528

For more information about the innovative features and benefits of SunWise Essential Series,

please visit www.sunwiseessentialseries.com.