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									MONEYmonitor
N e w s l e t t e r f o r C a n a d a L i f e ’s s e g r e g a t e d f u n d i n v e s t o r s                         Winter 2009




                                                       In this issue
                                                       I   Read beyond the headlines – Market swings are not new
                                                       I   Your Dec. 31, 2008 semi-annual statement – What you can
                                                           do to keep your investment portfolio strong
                                                       I   Ride out market swings with segregated fund policies
                                                       I   Money Monitor notes
                                                       I   Tax-free savings account (TFSA) – The most important new
                                                           savings tool offered by the federal government in over 50 years
                                                       I   Economic outlook: Canada is headed for recession and
                                                           some regions, notably Ontario, are likely in one already
                                                       I   Canada Life Generations and Flex rates of return




                 Read beyond the headlines
News stories about economic downturns,                        Historically, markets bounce back over time
talks of a recession, reduced commodity
prices (oil, gas etc.), a falling Canadian                                                     Drop in S&P 5001         Six         One
dollar, bankruptcies and U.S. government             Crisis                                       (per cent in        months       year
                                                                                               number of weeks)        later       later
bailouts may create concerns. However,
market swings are not new.                           Sputnik, October 1957                        -10% in 3            +8%         +30%
                                                     Steel price rollback, April 1962             -20% in 8            +11%        +24%
Every market has its ups and downs.
These movements are part of any normal               Liquidity crisis, May 1970                   -12% in 4            +16%        +42%
market cycle. It’s easy to become                    Nixon resignation, August 1974               -19% in 5            +30%        +27%
nervous with the unsettling daily                    Currency crisis, October 1978                -11% in 3            +8%         +16%
headlines and articles about the state of
the financial markets. During down                   Interest rate rise, September 1981           -13% in 4            +8%         +12%
markets, investors are often distracted by           Iraq invades Kuwait, August 1990             -20% in 12           +28%        +30%
short-term declines. Those who maintain
                                                     Asian currency depreciation, March 1997      -10% in 2            +29%        +36%
a long-term perspective tend to be
rewarded for their buy-and-hold strategy.            Sept. 11, 2001 U.S. tragedy                  -12% in 2            +19%         -6%

                                                                                                           1
                                                                                                               S&P 500 — Standard and Poor’s
                 Your Dec. 31, 2008 semi-annual statement
    You may open your end-of-the-year policy
    statements and wonder what happened.
    No one can predict market movement but proper
    planning can help manage tough times in the
    market cycle. It’s length of time and not market
    timing that matters most.

    What you can do to keep your
    investment portfolio strong
    Even the most seasoned investment
    professionals can’t predict what the markets will
    do in the future. To help protect your portfolio
    during volatile markets:

    • Work with your advisor*
                                                           Solid plans and clear advice during market
    • Understand your financial plan                       turbulence help investors cope better than those
    • Ensure your financial plan is still in line with     trying to decide when and where to move their
      your financial goals                                 money on their own.



           Ride out turbulence with                                L Growth on the upside
                                                                   M Protection on the downside
           segregated fund policies
            Your Canada Life Generations™ segregated fund policy has you covered
With your segregated fund policy, you have certain protection from market downturns. Product features and
guarantees vary, based on the product, but the good news is that with any segregated fund policy you’re protected.


  U On death                                             U If an insurance company is compromised
     Even in a down market 75 to 100                       (i.e. declares bankruptcy)
     per cent of your principal investment                 Segregated fund assets are maintained separately
     (depending on the policy) will be                     from the insurance company’s assets and are not
     returned to your named beneficiary,                   available to the company for purposes other than
     less a proportional reduction for any                 management on your behalf. The assets remain
     redemptions.                                          intact despite the company’s financial situation.


  U On maturity                                          U With flexible investment options
     If markets don’t recover before your                  within one policy
     policy/premium matures, you’re guaranteed             Switches between funds can be done simply, while
     between 75 per cent and 100 per cent                  maintaining your policy. You retain the protection of
     (depending on the policy) of your principal           the policy on maturity or death and have a certain
     investment, less a proportional reduction             level of protection from market downturns.
     for any redemptions.


                       Help protect your assets with segregated fund policies.
                                     Money Monitor notes
   Estate Protection policies only                            Changes to federal LIFs/locked-in RRSPs
   Please note that your Estate Protection policy is          In May 2008, the federal government improved
   reported as a Canada Life Generations I product.           pension legislation that governs federal locked-in
   On client statements and VIPNet, Estate Protection         policies. Talk to your advisor about how this
   policies are referred to as Generations I. If you          affects your policy.
   hold a Canada Life Generations policy as well as
   an Estate Protection policy, you’ll receive multiple       Stay invested
   client statements.                                         If you want your RRIF payments to stay invested,
                                                              you can reinvest them in a non-registered policy.
                                                              Ask your advisor for details.
                  VIPNet gives you 24-hour secure
     VIPNet       access to your policy information.
                                                              Short-term trading discouraged
                  www.canadalife.com                          Segregated funds, like mutual funds, provide the
                                                              most opportunity for gains when held over the
                                                              long term. Short-term trades – moving money from
   RRSP contribution deadline –                               a segregated fund when the investment has been
   March 2, 2009                                              in place for less than a 90-day period – can
   Your 2008 registered retirement savings plan               negatively affect your returns.
   (RRSP) contributions are due March 2, 2009.                Consequences for short-term trading include
   Contributions dated after March 2, 2009, will result       suspending or postponing trading requests and
   in tax receipts for 2009 and not the 2008 tax year.        charging short-term trading fees for any trading that
   This is a Canada Revenue Agency requirement.               may be detrimental to the funds or other unitholders.




                  Tax-free savings account (TFSA)
                        The most important new savings tool offered
                         by the federal government in over 50 years

The TFSA is a flexible investment savings account that allows
you to earn tax-free investment income. It’s not a traditional
savings account, rather another type of investment account,
just as registered retirement savings plans (RRSPs) or
registered education savings plans (RESPs) are plan types.

Some features and benefits:

• Available to individuals over age 18
• Contribute up to $5,000 per year (contributions aren’t
  tax deductible)
• Carry forward unused contribution limit indefinitely like
  an RRSP
• Pay no tax on investment income and withdrawals
• Use the money you withdraw for anything, with no
  restrictions or time limits
• Contribute to a spouse’s TFSA without tax implications

Talk to your advisor about a Canada Life TFSA.
                                         Economic outlook
                                        Laketon economic commentary

    The slowdown in economic growth that started in                      to be further lowered. At the same time, other
    the U.S. housing sector has broadened out across                     monetary responses such as the troubled asset
    the entire economy. Although the National Bureau of                  relief program (TARP) in the U.S. and mortgage
    Economic Research in the U.S. (the official                          purchases in Canada are being enacted to stabilize
    tabulators of Recessions) has not                                                          the banking system.
    yet declared a recession, we
    believe the U.S. is already in one.
                                                      We believe Canada is                     Finally, we expect to see aggressive
    We believe Canada is also headed                  headed for recession                     fiscal responses by governments
    for recession and that some                          and that some                         globally to further offset some of
    regions, notably Ontario, are likely                regions, notably                       the contraction in the private
    in one already.                                                                            sector. While the Canadian
                                                       Ontario, are likely
                                                                                               economy is exposed to the current
                                                         in one already.
    Fortunately, governments and                                                               downturn in terms of a slowing
    Central Banks are responding                                                               housing sector, weakened export
    aggressively. Short-term interest rates have been                    markets (particularly the U.S.) and lower commodity
    lowered globally, and we expect overnight rates in                   prices, it will benefit from a financial system which
    both the U.S. (1 per cent) and Canada (2.25 per cent)                is amongst the most stable in the world.




                                              This commentary is current as of Nov. 15, 2008.




                                              Article provided by




The commentaries on the company specific information and purchases and sales were provided by Laketon. Canada Life will not be liable for
any loss, or damages whatsoever, whether directly or indirectly incurred, arising out of the use or misuse of or errors or omissions in any
information contained in this newsletter.
The data provided in this commentary is for information purposes only, and except where otherwise indicated, is current as of Nov. 15, 2008.
                                          Generations segregated fund rates of return                                                                                            At Nov. 30, 2008

                                                                                                                                                                                             From
                                                                                   Fund           Nov. 30        1-month        3-month         1-year         3-year         5-year      inception
                                Fund name                                         number         unit value       return         return         return         return         return        return

Asset allocation funds          Conservative Allocation                            S626           $11.60            0.8%           -4.4%         -2.8%           1.4%          3.1%           3.0%
                                Moderate Allocation                                S627           $11.35           -0.3%           -9.4%         -9.4%          -0.2%          2.6%           2.6%
                                Balanced Allocation                                S628           $11.35           -2.1%         -15.2%        -17.8%           -2.9%          2.4%           2.6%
                                Advanced Allocation                                S629           $11.23           -3.8%         -23.3%        -25.9%           -4.2%          2.1%           2.3%
                                Aggressive Allocation                              S630           $10.31           -5.5%         -28.3%        -31.5%           -5.6%          0.4%           0.6%

Income allocation funds         Income Focus                                       S631           $10.60            1.1%           -2.2%          0.2%           2.0%             —           1.9%
                                Income Growth                                      S632           $10.40            0.2%           -5.2%         -4.0%           1.3%             —           1.3%
                                Income Growth Plus                                 S633            $9.75           -1.3%         -10.6%        -10.9%           -0.9%             —          -0.9%

Fixed income funds              Government Bond (GWLIM)                            S167           $12.95            1.9%           1.7%           5.2%           2.7%          2.3%           2.6%
                                Money Market Fund (Laketon)                        S029           $12.51            0.1%           0.3%           2.0%           2.5%          1.8%           2.3%
                                No-Load Money Market (Laketon)                     S188           $13.05            0.1%           0.5%           2.5%           2.9%          2.3%           2.7%
                                Fixed Income (Laketon)                             S019           $14.17            2.1%          -2.1%           0.6%           1.5%          2.8%           3.6%
                                International Bond (Laketon)                       S036           $10.30            5.3%         17.0%          24.6%            6.1%          1.4%           0.3%
                                Income Opportunity (London Capital)                S354            $9.81            0.4%          -8.1%          -8.0%          -0.8%             —          -0.6%
                                Indexed Canadian Bond (TDAM)                       S079           $14.13            2.3%          -1.0%           1.8%           1.6%          2.9%           3.5%

Balanced funds                  Canadian Growth & Income (AGF)                     S249           $15.01            3.3%           -8.3%         -9.0%           2.9%          5.3%           4.6%
                                Balanced (Bissett)                                 S104           $11.40           -4.0%         -18.2%        -21.3%           -6.0%          0.1%           1.3%
                                Harbour Growth & Income (CI)                       S190           $16.18           -4.0%         -21.2%        -20.2%           -2.2%          4.0%           4.9%
                                Canadian Asset Allocation (Fidelity)               S191           $15.10           -2.3%         -20.9%        -19.5%           -1.4%          3.9%           4.2%
                                Managed (Laketon)                                  S035           $10.80           -2.6%         -16.7%        -16.9%           -2.6%          1.9%           0.8%
                                Balanced (Trimark)                                 S054           $14.43           -3.0%         -17.2%        -20.1%           -6.1%         -0.7%           3.7%

Canadian equity funds           Canadian Growth (AIM)                              S289           $11.10            -4.7%        -24.6%        -30.3%           -4.7%          5.5%           3.1%
                                Canadian Equity (Bissett)                          S103           $13.31          -10.2%         -27.6%        -31.2%           -8.0%          1.2%           2.9%
                                Small Cap Equity (Bissett)                         S105           $13.50          -13.3%         -40.4%        -44.0%         -19.1%          -2.8%           3.1%
                                Harbour Canadian (CI)                              S175           $19.62            -5.0%        -26.2%        -25.9%           -2.5%          5.5%           7.0%
                                CL Fidelity True North®                            S176           $18.81            -5.3%        -33.1%        -32.7%           -3.8%          4.7%           6.5%
                                Mid Cap Canada (GWLIM)                             S346            $8.86            -5.1%        -35.6%        -45.1%         -12.8%          -2.6%          -2.4%
                                Canadian Equity (Howson Tattersall) 1              S177           $11.21            -4.0%        -27.9%        -30.9%           -9.6%         -3.8%           1.2%
                                Enhanced Dividend (Laketon)                        S039           $19.56            -9.6%        -24.3%        -27.0%           -5.6%          2.8%           6.9%
                                Canadian Equity (Laketon)                          S009           $13.09            -4.9%        -29.5%        -26.9%           -0.9%          6.9%           2.7%
                                Canadian Equity Value (Laketon)                    S347           $10.75            -4.5%        -30.7%        -33.7%           -8.2%          1.5%           1.4%
                                Dividend (London Capital)                          S189           $13.12            -4.0%        -20.7%        -25.1%           -3.5%          3.5%           2.8%
                                Canadian Equity (London Capital)                   S285           $10.16            -3.3%        -29.7%        -29.7%           -3.3%          4.5%           1.4%
                                Canadian Equity Growth (Mackenzie)                 S102           $11.76            -4.1%        -29.7%        -28.6%           -5.7%          2.5%           1.6%
                                Canadian Equity (Trimark)                          S052           $11.36            -7.8%        -29.6%        -32.1%         -10.5%          -3.2%           1.3%

Canadian specialty              Canadian Equity (AGF)                              S101           $13.63            -1.2%        -38.8%        -46.3%         -11.2%          -1.4%          3.2%
funds                           Real Estate (GWLRA)                                S353           $13.80            -0.3%          1.5%          6.7%          11.2%              —         11.2%
                                Canadian Resource (Mackenzie)                      S348           $11.00          -14.2%         -55.3%        -56.4%         -13.3%           1.5%          1.9%

Foreign equity funds            American Growth (AGF)                              S247            $3.48           -9.6%         -28.9%        -35.5%           -9.7%         -5.6%         -11.1%
                                International Equity (CI) 2                        S182            $3.99           -4.6%         -33.1%        -43.3%         -12.8%          -7.4%           -8.8%
                                Global Equity (Fidelity)                           S184            $6.16           -3.1%         -26.2%        -39.9%         -13.0%          -5.6%           -4.7%
                                CL Fidelity American Disciplined Equity®           S356            $7.84           -1.9%         -19.0%        -29.4%           -7.4%             —           -7.7%
                                U.S. Value (London Capital)                        S178            $5.17           -6.4%         -27.4%        -33.6%         -13.6%          -5.6%           -6.4%
                                U.S. Growth Leaders (Mackenzie)                    S286            $4.59           -5.9%         -19.5%        -23.3%           -6.6%         -4.1%           -8.7%
                                Global Future (Mackenzie)                          S183            $8.27           -6.0%         -27.5%        -37.2%           -7.8%         -3.7%           -1.9%
                                Global Equity (Setanta)                            S034            $4.89           -5.6%         -23.7%        -31.1%           -8.2%         -3.9%           -6.9%
                                International Equity (Templeton)                   S118            $7.40           -3.4%         -23.9%        -37.2%           -8.2%         -1.8%           -3.0%
                                Global Equity (Trimark)                            S051           $10.46           -9.1%         -27.4%        -35.3%           -8.7%         -4.5%            0.5%

Foreign specialty funds         CL Fidelity NorthStar®                             S355             $7.08          -7.1%         -29.0%        -35.2%         -10.8%              —         -10.8%
                                Far East Equity (Mackenzie)                        S038             $7.63          -2.6%         -26.2%        -41.4%           -3.5%         -1.8%           -1.0%
                                European Equity (Setanta)                          S037             $6.41          -5.5%         -23.6%        -35.5%           -8.7%         -1.4%           -4.4%

Discontinued funds              Indexed   Balanced (TDAM) 3                        S080           $11.64           -2.2%         -17.2%        -18.6%           -2.8%          1.6%           1.5%
                                Indexed   Canadian Equity (TDAM) 3                 S120           $13.88           -5.0%         -32.5%        -32.0%           -5.0%          3.0%           3.3%
                                Indexed   U.S. Equity (TDAM) 3                     S119            $5.22           -5.4%         -18.5%        -25.6%           -9.8%         -5.3%          -6.3%
                                Indexed   International Equity (TDAM) 3            S081            $6.52           -3.6%         -24.7%        -36.8%           -8.4%         -1.7%          -4.2%

1
 Note that on Nov. 26, 2007, Howson Tattersall assumed portfolio management responsibilities for the segregated fund. The name of this segregated fund prior to this change was Canada Life
Canadian Equity (Templeton). 2 Note that on Nov. 26, 2007, CI Investments assumed portfolio management responsibilities for the segregated fund. The name of this segregated fund prior to this
change was Canada Life World Equity (AIC). 3 Note that on Nov. 26, 2007, this fund is no longer available for new premiums.
The indicated rates of return for 1, 3, 5 years and From Inception are annual compounded returns for the period ending Nov. 30, 2008, including changes in unit values. They do not take into
account redemption fees or other applicable charges payable by the policyholder. The stated returns are net of the segregated fund management fees and operating expenses, but does not reflect
redemption fees or other charges. Therefore actual returns will be less than illustrated. Please note that unit values and investment returns will fluctuate and past performance is not necessarily
indicative of future performance.
The annualized current yield and effective yield for the Canada Life No-Load Money Market (Laketon) Fund for the seven-day period ending Nov. 30, 2008 is 1.44 per cent and 1.45 per cent
respectively. The annualized current yield and effective yield for the Canada Life Money Market (Laketon) Fund for the seven-day period ending Nov. 30, 2008 is 0.96 per cent and 0.96 per cent
respectively. These are annualized historical yields based on the seven-day period ending on Nov. 30, 2008, and does not represent an actual one-year return.
 Canada Life Generations and Estate Protection segregated fund unit values
 Generations I segregated funds were offered for sale effective June 5, 2006. Generations Core and Generations II were offered for sale effective
 Dec. 3, 2007. Estate Protection was offered for sale effective Oct. 10, 2008. Performance for these products reflects fees associated with each
 product. Please speak with your advisor or visit www.canadalife.com under the section Rates and Values for unit values and rates of return for your
 segregated funds.



 Flex segregated fund rates of return                                                                                                                                            At Nov. 30, 2008
                                                                                                                                                                              From
                                                 Fund            Nov. 30         1-month        3-month        1-year          3-year         5-year         10-year       inception      Inception
 Fund name                                      number          unit value        return         return        return          return         return          return         return         date

 Money Market Fund (Laketon)                    S029            $83.96             0.1%           0.3%          2.0%            2.5%           1.8%           2.3%             —          09/74
 Fixed Income (Laketon)                         S019           $142.15             2.1%          -2.1%          0.6%            1.5%           2.8%           3.5%             —          11/73
 International Bond (Laketon)                   S036            $15.97             5.3%         17.0%          24.6%            6.1%           1.4%           0.3%             —          01/94
 Managed (Laketon)                              S035            $46.59            -2.6%        -16.7%         -16.9%           -2.6%           1.9%           0.9%             —          04/84
 Enhanced Dividend (Laketon)                    S039            $20.09            -9.6%        -24.3%         -27.0%           -5.6%           2.8%           7.1%             —          11/97
 Canadian Equity (Laketon)                      S009           $220.14            -4.9%        -29.5%         -26.9%           -0.9%           6.9%           2.9%             —          08/69
 Canadian Equity (London Capital)               S285            $10.06            -3.3%        -29.7%         -29.7%           -3.3%           4.5%              —          0.1%          04/01
 U.S. Growth Leaders (Mackenzie)                S286             $4.54            -5.9%        -19.5%         -23.3%           -6.6%          -4.1%              —         -9.8%          04/01
 Global Equity (Setanta)                        S034            $40.65            -5.6%        -23.7%         -31.1%           -8.2%          -3.9%          -6.6%             —          04/84
 Far East Equity (Mackenzie)                    S038             $7.72            -2.6%        -26.2%         -41.4%           -3.5%          -1.8%          -1.6%             —          11/95
 European Equity (Setanta)                      S037            $13.22            -5.5%        -23.6%         -35.5%           -8.7%          -1.4%          -4.1%             —          11/95

 The indicated rates of return for 1, 3, 5, 10 years and From Inception are annual compounded returns for the period ending Nov. 30, 2008, including changes in unit values. They do not take
 into account redemption fees or other applicable charges payable by the policyholder. Where a value is supplied for the 10-year return, no value is provided for the return from inception. The
 stated returns are net of the segregated fund management fees and operating expenses, but does not reflect redemption fees or other charges. Therefore actual returns will be less than
 illustrated. Please note that unit values and investment returns will fluctuate and past performance is not necessarily indicative of future performance.
 The annualized current yield and effective yield for the Canada Life Money Market (Laketon) Fund for the seven-day period ending Nov. 30, 2008 is 0.94 per cent and 0.95 per cent respectively.
 These are annualized historical yields based on the seven-day period ending on Nov. 30, 2008, and does not represent an actual one-year return.
 *In Quebec, advisor refers to a financial security advisor for individual insurance and segregated fund policies; and to an advisor in group insurance/annuity plans for group products.

 Published rates of return: Money Monitor uses the most current rates of return available at the time of publishing. For up-to-date rates of return,
 please visit www.canadalife.com.




                                                         Helping people achieve more                                                          TM




                                            For more information about Canada Life and its products
                                              visit www.canadalife.com or talk to your advisor.

                      The Canada Life Assurance Company                                          330 University Avenue, Toronto, ON M5G 1R8
                                  Canada Life and design, “Helping people achieve more” and Canada Life Generations are trademarks of The Canada Life Assurance Company.




A description of the key features of Canada Life’s individual variable insurance contract is contained in the information folder, available from your advisor.
SUBJECT TO ANY APPLICABLE DEATH AND MATURITY GUARANTEE, ANY AMOUNT THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE
RISK OF THE POLICYHOLDER AND MAY INCREASE OR DECREASE IN VALUE ACCORDING TO THE FLUCTUATIONS IN THE MARKET VALUE OF THE
ASSETS OF THE SEGREGATED FUND.



                    XX-COC-XXXX




MCC# 894126                                                                                                                                                                            46-3490-12-08

								
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