宏利金融+2023年2季度統(tǒng)計資料冊- Statistical Information Package

StatisticalInformationPackageQ22023

TABLEOFCONTENTS

NotestoReaders

FinancialHighlights

DriversofEarnings

FinancialHighlights(cont'd)

Page

1

5

7

8

AssetInformation

AssetCompositionandQuality

PortfolioComposition

FixedIncomeSecuritiesbyCreditQualityandGeographicLocation

FixedIncomeSecuritiesbySectorandUnrealizedLosses

Page

45

46

47

ConsolidatedFinancialStatements

ConsolidatedStatementsofComprehensiveIncome

ConsolidatedStatementsofFinancialPosition

ConsolidatedStatementsofChangesinEquity

ConsolidatedStatementsofCashFlows

12

13

14

15

ActuarialLiabilitiesInformation

VariableAnnuityandSegregatedFundGuarantees

48

49

SegmentedInformation

Asia

Canada

U.S.

GlobalWealthandAssetManagement

Corporate&Other

16

24

29

35

41

CapitalInformation

RegulatoryCapital

GlossaryofTermsandDefinitions

GeneralInformation

50

51

52

Page1

NOTESTOREADERS-IFRS17andIFRS9TRANSITIONINFORMATION

ManulifeadoptedIFRS17“InsuranceContracts”andIFRS9“FinancialInstruments”effectiveforyearsbeginningonorafterJanuary1,2023,tobeappliedretrospectively.Ourquarterlyandyear-to-date2022resultshavebeenrestatedinaccordancewithIFRS17,includingtheothercomprehensiveincomeoption,andIFRS9.However,the2022comparativeresultsrestatedmaynotbefullyrepresentativeofourmarketriskprofile,asthetransitionofourgeneralfundportfolioforasset-liabilitymatching

purposesunderIFRS17andIFRS9wasnotcompleteduntilearly2023.Consequently,year-over-yearvariationsbetweenour2023resultscomparedtothe2022resultsshouldbeviewedinthiscontext.

Additionally,ouruseofthefairvaluethroughothercomprehensiveincomeoptionaspermittedunderIFRS17hasresultedinour2022resultsnotbeingdirectlycomparabletothe2023results.Accordingly,for2023only,wewillalsopresentcomparativequarterlyandyear-to-date2022resultsinclusiveofIFRS9hedgeaccountingandexpectedcreditlossprinciplesasifIFRShadallowedsuchprinciplestobeimplementedfor2022(the“IFRS9transitionalimpacts”).

Thefollowingfinancialmeasuresfor2022havebeenadjustedforIFRStransitionalimpactsandaredenotedbytheterm"Transitional":

.Netincome(loss)attributedtoshareholders

.Netincome(loss)beforeincometaxes

.Netincome(loss)

.Netincome(loss)attributedtoshareholdersbeforetaxes

.Returnoncommonshareholders'equity

.Basicearningspercommonshare;and

.Dilutedearningspercommonshare

Inthisdocument,wehaveshadedinlightgreythe2022resultswhichexcludetheIFRS9transitionalimpacts.

Page2

NOTESTOREADERS

Useofthisdocument:

InformationinthedocumentissupplementarytotheCompany'scurrentquarterPressRelease,MD&AandauditedfinancialstatementsinthemostrecentAnnualReportandshouldbereadinconjunctionwiththosedocuments.

Non-GAAPandOtherFinancialMeasures

TheCompanypreparesitsConsolidatedFinancialStatementsinaccordancewithInternationalFinancial

ReportingStandards(“IFRS”)asissuedbytheInternationalAccountingStandardsBoard.Weuseanumberofnon-GAAPandotherfinancialmeasurestoevaluateoverallperformanceandtoassesseachofourbusinesses.ThissectionincludesinformationrequiredbyNationalInstrument52-112–Non-GAAPandOtherFinancial

MeasuresDisclosureinrespectof“specifiedfinancialmeasures”(asdefinedtherein).

Non-GAAPfinancialmeasuresincludestransitionalnetincome(loss)attributedtoshareholders;transitionalnetincome(loss)beforeincometaxes;transitionalnetincome(loss);transitionalnetincome(loss)attributedtoshareholders(pre-tax);coreearnings(loss);pre-taxcoreearnings;coreearningsbeforeincometaxes,

depreciationandamortization(“coreEBITDA”);totalexpense;coreexpenses;totalexpenditures;core

expenditures;corerevenue;ManulifeBanknetlendingassets;ManulifeBankaveragenetlendingassets;assetsundermanagement(“AUM”);assetsundermanagementandadministration(“AUMA”);GlobalWealthandAssetManagement("GlobalWAM")managedAUMA;netannualizedfeeincome;post-taxcontractualservicemargin(“post-taxCSM”);post-taxcontractualservicemarginnetofnon-controllinginterests(“NCI”)(“post-taxCSMnetofNCI”);DriversofEarnings(“DOE”)lineitemsfornetinvestmentresult,other,incometax(expense)recoveryandtransitionalnetincomeattributedtoparticipatingpolicyholdersandNCI;coreDOElineitemsforcorenet

insuranceserviceresult,corenetinvestmentresult,othercoreearnings,andcoreincometax(expense)

recovery;.Inaddition,non-GAAPfinancialmeasuresincludethefollowingstatedonaconstantexchangerate(“CER”)basis:anyoftheforegoingnon-GAAPfinancialmeasures;netincomeattributedtoshareholders;andcommonshareholders’netincome.

Non-GAAPratiosincludescorereturnonshareholders'equity("coreROE");dilutedcoreearningspercommonshare(“coreEPS”);transitionalreturnoncommonshareholders’equity(“transitionalROE”);transitionalbasic

earningspercommonshare(“transitionalbasicEPS”);transitionaldilutedearningspercommonshare

("transitionaldilutedEPS");financialleverageratio;commonsharecoredividendpayoutratio;effectivetaxrateoncoreearnings;expenditureefficiencyratio;expenseefficiencyratio;coreEBITDAmargin;post-taxCSMnetofNCIpercommonshare;adjustedbookvaluepercommonshare;adjustedbookvalueexcludinggoodwillpercommonshare;marketvaluetoadjustedbookvalueratio;marketvaluetoadjustedbookvalueexluding

goodwillratio;netannualizedfeeincomeyieldonaverageAUMAandeffectivetaxrateontransitionalnet

incomeattributedtoshareholders.Inaddition,non-GAAPratiosincludethepercentagegrowth/declineonaCERbasisinanyoftheabovenon-GAAPfinancialmeasures;netincomeattributedtoshareholders;common

shareholders’netincome;Pre-taxnetincomeattributedtoshareholders;basicearningspercommonshare;anddilutedearningspercommonshare;DOElineitemfornetinsuranceserviceresult;CSM;CSMnetofNCI;

impactofnewinsurancebusiness;newbusinessCSMnetofNCI;basicearningspercommonshare(“basicEPS”)anddilutedearningspercommonshare(“dilutedEPS”).

Otherspecifiedfinancialmeasuresincludeassetsunderadministration(“AUA”);consolidatedcapital;newbusinessvalue(“NBV”);newbusinessvaluemargin(“NBVmargin”);sales;annualizedpremiumequivalent

(“APE”)sales;grossflows;netflows;marketvaluetobookvalueratio;averageassetsundermanagementandadministration(“averageAUMA”);GlobalWAMaveragemanagedAUMA;averageassetsunderadministration;anyoftheforegoingspecifiedfinancialmeasuresstatedonaCERbasis;andpercentagegrowth/declineinanyoftheforegoingspecifiedfinancialmeasuresonaCERbasis.Inaddition,weprovideanexplanationofthe

componentsofcoreDOElineitemsotherthanthechangeinexpectedcreditloss,theitemsthatcomprise

certainitemsexcludedfromcoreearnings,andthecomponentsofCSMmovementotherthanthenewbusinessCSM.

Non-GAAPfinancialmeasuresandnon-GAAPratiosarenotstandardizedfinancialmeasuresunderGAAPand,

therefore,mightnotbecomparabletosimilarfinancialmeasuresdisclosedbyotherissuers.Formoreinformationonthenon-GAAPandotherfinancialmeasuresinthisdocument,seethesection"Non-GAAPandOtherFinancialMeasures"inourmostrecentlyfiledManagement'sDiscussionandAnalysis("MD&A"),whichisincorporatedbyreferenceandavailableonSEDAR+at.

Coreearningsisafinancialmeasurewhichwebelieveaidsinvestorsinbetterunderstandingthelong-term

earningscapacityandvaluationofthebusiness.CoreearningsallowsinvestorstofocusontheCompany’s

operatingperformancebyexcludingtheimpactofmarketrelatedgainsorlosses,changesinactuarialmethodsandassumptionsthatflowdirectlythroughincomeaswellasanumberofotheritems,outlinedbelow,thatwebelievearematerial,butdonotreflecttheunderlyingearningscapacityofthebusiness.Forexample,duetothelong-termnatureofourbusiness,themark-to-marketmovementsinequitymarkets,interestratesincludingimpactson

hedgeineffectiveness,foreigncurrencyexchangeratesandcommoditypricesaswellasthechangeinthefair

valueofALDAfromperiod-to-periodcan,andfrequentlydo,haveasubstantialimpactonthereportedamountsofourassets,insurancecontractliabilitiesandnetincomeattributedtoshareholders.Thesereportedamountsmaynotberealizedifmarketsmoveintheoppositedirectioninasubsequentperiod.Thismakesitverydifficultfor

investorstoevaluatehowourbusinessesareperformingfromperiod-to-periodandtocompareourperformancewithotherissuers

Formoreinformationoncoreearnings,seethesection"Non-GAAPandOtherFinancialMeasures"inourmostrecentlyfiledMD&A.

DriversofEarnings(“DOE”)isusedtoidentifytheprimarysourcesofgainsorlossesineachreportingperiod.Itisoneofthekeytoolsweusetounderstandandmanageourbusiness.TheDOEhasreplacedtheSourceof

EarningsthatwasdisclosedunderOSFI’sSourceofEarningsDisclosure(LifeInsuranceCompanies)guideline.TheDOElineitemsarecomprisedofamountsthathavebeenincludedinourfinancialstatements.TheDOEshowsthesourcesofnetincome(loss)attributedtoshareholdersandthecoreDOEshowsthesourcesofcoreearningsandtheitemsexcludedfromcoreearnings,reconciledtonetincomeattributedtoshareholders.Wehaveincluded

transitionalnon-GAAPfinancialmeasuresforour2022comparativequarterlyresults

Theelementsofthecoreearningsviewaredescribedbelow:

>NetInsuranceServiceResultrepresentsthenetincomeattributedtoshareholdersassociatedwithprovidinginsuranceservicestopolicyholderswithintheperiod.Thisincludeslinesattributedtocoreearningsincluding:

?Expectedearningsoninsurancecontractswhichincludesthereleaseofriskadjustmentfor

expirednon-financialrisk,theCSMrecognizedforservicesprovidedandexpectedearningsonshort-termPAAinsurancebusiness.

?Impactofnewinsurancebusinessrelatestoincomeatinitialrecognitionfromnewinsurance

contracts.Losseswouldoccurifthegroupofnewinsurancecontractswasonerousatinitialrecognition.Ifreinsurancecontractsprovidecoverageforthedirectinsurancecontracts,thenthelossisoffsetbyacorrespondinggainonreinsurancecontractsheld.

?Insuranceexperiencegains(losses)arisefromitemssuchasclaims,persistency,andexpenses,

wheretheactualexperienceinthecurrentperioddiffersfromtheexpectedresultsassumedinthe

insuranceandinvestmentcontractliabilities.Generally,thislinewouldbedrivenbyclaimsand

expenses,aspersistencyexperiencerelatestofutureserviceandwouldbeoffsetbychangestothe

carryingamountofthecontractualservicemarginunlessthegroupisonerous,inwhichcasetheimpactofpersistencyexperiencewouldbeincludedincoreearnings.

?Otherrepresentspre-taxtransitionalnetincomeonresidualitemsintheinsuranceresultsection.

Page3

NOTESTOREADERS(CONT'D)

>NetInvestmentResultrepresentsthenetincomeattributedtoshareholdersassociatedwithinvestmentresultswithintheperiod.NotethatresultsassociatedwithGlobalWealthandAssetManagementand

ManulifeBankareshowninseparateDOElines.Howeverwithintheincomestatement,theresults

associatedwiththesebusinesseswouldimpactthetotalnetinvestmentresult.Thissectionincludeslinesattributedtocoreearningsincluding:

?Expectedinvestmentearnings,whichisthedifferencebetweenexpectedassetreturnsandtheassociatedfinanceincomeorexpensefrominsurancecontractliabilities,netofinvestmentexpenses.

?Changeinexpectedcreditlosswhichisthegainorchargetonetincomeattributedtoshareholdersforcreditlossestobringtheallowanceforcreditlossestoalevelmanagementconsidersadequateforexpectedcredit-relatedlossesonitsportfolio.

?Expectedearningsonsurplusreflectstheexpectedinvestmentreturnonsurplusassets.

?Otherrepresentspre-taxnetincomeonresidualitemsintheinvestmentresultsection.

>GlobalWealthandAssetManagement(“GlobalWAM”)isthepre-taxnetincomefromtheGlobal

WealthandAssetManagementsegment,adjustedforapplicableitemsexcludedfromcoreearningsasnotedinthecoreearnings(loss)sectionabove.

>ManulifeBankisthepre-taxnetincomefromManulifeBank,adjustedforapplicableitemsexcludedfromcoreearningsasnotedinthecoreearnings(loss)sectionabove.

>Otherrepresentsnetincomeassociatedwithitemsoutsideofthenetinsuranceserviceresult,net

investmentresult,GlobalWAMandManulifeBank.Otherincludeslinesattributedtocoreearningssuchas:

?Non-DirectlyAttributableExpensesareexpensesincurredbytheCompanywhicharenot

directlyattributabletofulfillinginsurancecontracts.Non-directlyattributableexpensesexcludesnon-directlyattributableinvestmentexpensesastheyareincludedinthenetinvestmentresult.

?Otherrepresentspre-taxnetincomeonresidualitemsintheOthersection.MostnotablythiswouldincludethecostoffinancingdebtissuedbyManulife.

ContractualServiceMargin(CSM)isaliabilitythatrepresentsfutureunearnedprofitsoninsurance

contractswritten.ItisacomponentofourinsuranceandreinsurancecontractliabilitiesonourStatementof

FinancialPosition.OrganicandinorganicchangesinCSMincludeamountsattributabletoparticipating

shareholdersandnon-controllinginterests.CSMgrowthisthepercentagechangeintheCSMcomparedwithapriorperiodonaconstantexchangeratebasis.

ChangesinCSMthatareclassifiedasOrganicincludethefollowingimpacts:

?ImpactofnewbusinessistheimpactonCSMfrominsurancecontractsinitiallyrecognizedintheperiodandincludesacquisitionexpenserelatedgains(losses)whichimpacttheCSMintheperiod.ItexcludestheimpactonCSMfromenteringintonewin-forcereinsurancecontractswhichwouldgenerallybeconsideredamanagementaction.

?ExpectedmovementrelatedtofinanceincomeorexpensesincludesinterestaccretedontheCSMduringtheperiodandtheexpectedchangeintheCSMonVFAcontractsifreturnsareasexpected.

?CSMrecognizedforservicesprovidedistheportionoftheCSMthatisrecognizedinnetincomeforservicesprovidedintheperiod.

?Insuranceexperiencegains(losses)andotherisprimarilythechangeintheCSMbalancefromexperiencevariancesthatrelatetofutureperiods.Thisincludespersistencyexperienceandchangesinfutureperiodcashflowscausedbyothercurrentperiodexperience.

ChangesinCSMthatareclassifiesasInorganicincludea)ChangesinactuarialmethodsandassumptionsthatadjusttheCSMb)Effectofmovementinexchangeratesoverthereportingperiodc)Impactofmarketsandd)Reinsurancetransactions,tax-relatedandotheritems

NewBusinessCSMistheimpactofnewbusinessdefinedabove,excludingCSMattributabletonon-controllinginterests.

Newbusinessvalue(“NBV”)isthechangeinembeddedvalueasaresultofsalesinthereportingperiod.ThedefinitionofNBVhaschangedforperiodsbeginningafter2022asfollows:

?AdoptingIFRS17inthecalculationofexpectedfuturedistributableearningsinCanada,andinternationalhighnetworthbusiness,whichwasreclassifiedtotheAsiasegmentin2023;and

?ChangingthebasisforcalculatingexpectedfuturedistributableearningsintheU.S.fromIFRStolocalcapitalrequirements.

NBVforperiodsbeginningafterDecember31,2022iscalculatedasthepresentvalueofshareholders’interestsinexpectedfuturedistributableearningsinaccordancewithIFRS17,afterthecostofcapitalcalculatedunderthe

LICATframeworkinCanadaandthelocalcapitalrequirementsintheU.S.andAsia,onactualnewbusinesssoldintheperiodusingassumptionsthatareconsistentwiththeassumptionsusedinthecalculationofembeddedvalue.

NBVforperiodspriortoJanuary1,2023iscalculatedasthepresentvalueofshareholders’interestsinexpectedfuturedistributableearningsinaccordancewithIFRS4“InsuranceContracts”,afterthecostofcapitalcalculatedundertheLICATframeworkinCanadaandtheU.S.andthelocalcapitalrequirementsinAsia,onactualnew

businesssoldintheperiodusingassumptionsthatareconsistentwiththeassumptionsusedinthecalculationofembeddedvalue.

NBVexcludesbusinesseswithimmaterialinsurancerisks,suchastheCompany’sGlobalWAM,ManulifeBankandtheP&CReinsurancebusinesses.NBVisausefulmetrictoevaluatethevaluecreatedbytheCompany’snew

businessfranchise.

NBVmarginiscalculatedasNBVdividedbyAPEsalesexcludingnon-controllinginterests.APEsalesare

calculatedas100%ofregularpremiumsanddepositssalesand10%ofsinglepremiumsanddepositssales.NBVmarginisausefulmetrictohelpunderstandtheprofitabilityofournewbusiness.

Coreearningsbeforeincometax,depreciationandamortization("CoreEBITDA")isafinancialmeasurewhichManulifeusestobetterunderstandthelong-termearningscapacityandvaluationofourGlobalWAM

businessonabasismorecomparabletohowtheprofitabilityofglobalassetmanagersisgenerallymeasured.CoreEBITDApresentscoreearningsbeforetheimpactofinterest,taxes,depreciation,andamortization.CoreEBITDAexcludescertainacquisitionexpensesrelatedtoinsurancecontractsinourretirementbusinesseswhichare

deferredandamortizedovertheexpectedlifetimeofthecustomerrelationship.CoreEBITDAwasselectedasakeyperformanceindicatorforourGlobalWAMbusiness,asEBITDAiswidelyusedamongassetmanagementpeers,

andcoreearningsisaprimaryprofitabilitymetricfortheCompanyoverall.

CoreEBITDAmarginisafinancialmeasurewhichManulifeusestobetterunderstandthelong-termprofitabilityofourGlobalWAMbusinessonamorecomparablebasistohowprofitabilityofglobalassetmanagersare

measured.CoreEBITDAmarginpresentscoreearningsbeforetheimpactofinterest,taxes,depreciation,and

amortizationdividedbycorerevenuefromthesebusinesses.CorerevenueisusedtocalculateourcoreEBITDA

margin,andisequaltothesumofpre-taxotherrevenueandinvestmentincomeinGlobalWAMincludedincoreEBITDA,anditexcludessuchitemsasrevenuerelatedtointegrationandacquisitionsandmarketexperiencegains(losses).

Page4

NOTESTOREADERS(CONT'D)

NetannualizedfeeincomeyieldonaverageAUMA("NetFeeincomeyield")isafinancialmeasurethatrepresentsthenetannualizedfeeincomefromGlobalWAMchannelsoveraverageAUMA.ThismeasureprovidesinformationonGlobalWAM'sadjustedreturngeneratedfrommanagingAUMA.

Coreearningspershareiscoreearningsavailabletocommonshareholdersdividedbyweightedaverageoutstandingcommonshares.

Adjustedbookvaluepercommonshareiscalculateddividingcommonshareholders'equityandpost-taxCSMexcludingnon-controllinginterestsbythenumberofcommonsharesoutstandingattheendoftheperiod.

Expenseefficiencyratioisdefinedascoreexpensesdividedbythesumofcoreearningsbeforeincome

taxes(“pre-taxcoreearnings”)andcoreexpenses.Coreexpenseisequaltototalexpensesthatareincludedincoreearningsandexcludessuchitemsitemsasmateriallegalprovisionsforsettlements,restructuringchargesandexpensesrelatedtointegrationandacquisitions.Totalexpensesincludethefollowingitemsthatflow

directlythroughincome:generalexpenses,directlyattributablemaintenanceexpensesanddirectlyattributableacquisitionexpensesforcontractsmeasuredusingthePAAmethod.

ExpenseefficiencyratioisafinancialmeasurewhichManulifeusestomeasureprogresstowardsourtargettobemoreefficient.Duringthetransitionperiodfor2023,boththeexpenseefficiencyandtheexpenditure

efficiencyratioswillbedisclosed.Startingin2024,wewillreturntodisclosingtheexpenseefficiencyratioexclusivelyasitisthekeyexpenseperformancemetric.

ExpenditureefficiencyratioisafinancialmeasurewhichManulifeusestomeasureprogresstowardsourtargettobemoreefficient.Itisdefinedascoreexpendituresdividedbythesumofcoreearningsbefore

incometaxes(“pre-taxcoreearnings”)andcoreexpenditures.Coreexpenditureisequaltototalexpenditurewhichexcludesitemslikemateriallegalprovisionsforsettlements,restructuringchargesandexpensesrelatedtointegrationandacquisitions.TotalexpenditureincludesthesumoftotalexpensesandcoststhataredirectlyattributabletotheacquisitionofnewbusinessthatarecapitalizedintotheCSM

AnnualizedPremiumEquivalent("APE")Salesarecomprisedof100%ofregularpremiumsanddepositssalesand10%ofsinglepremiumsanddepositssales.

(i)Forindividualinsurance,newannualizedpremiumsreflecttheannualizedpremiumexpectedinthefirstyearofapolicythatrequirespremiumpaymentsformorethanoneyear.Singlepremiumisthelumpsumpremiumfromthesaleofasinglepremiumproduct,e.g.travelinsurance.Salesarereportedgrossbeforetheimpactofreinsurance.

(ii)Forgroupinsurance,salesincludesnewannualizedpremiumsandadministrativeservicesonly(ASO)premiumequivalentsonnewcases,aswellastheadditionofnewcoveragesandamendmentstocontracts,excludingrateincreases.

(iii)Forannuities,APEreflecttheannualizedpremiumexpectedinthefirstyearofapolicythatrequires

premiumpaymentsformorethanoneyear.Thisincludescertainsinglepremiumwealthaccumulationproductsandindividualannuities,bothfixedandvariable.

AnnuitiesSalesarecomprisedof100%ofallnewdeposits.Thisincludescertainsinglepremiumwealth

accumulationproductsinAsiaandindividualannuities,bothfixedandvariable.AswehavediscontinuedsalesofnewVAcontractsintheU.S.,beginninginthefirstquarterof2013,subsequentdepositsintoexistingU.S.VAcontractsarenotreportedassales.

GrossFlowsisanewbusinessmeasurepresentedforourGlobalWAMbusinessandincludesalldepositsinto

mutualfunds,grouppension/retirementsavingsproducts,privatewealthandinstitutionalassetmanagement

products.GrossflowsisacommonindustrymetricforWAMbusinessesasitprovidesameasureofhowsuccessfulthebusinessesareatattractingassets.

NetflowsispresentedforourGlobalWAMbusinessandincludesgrossflowslessredemptionsformutualfunds,grouppension/retirementsavingsproducts,privatewealthandinstitutionalassetmanagementproducts.In

addition,netflowsincludethenetflowsofexchangetradedfundsandnon-proprietaryproductsoldbyManulifeSecurities.NetflowsisacommonindustrymetricforWAMbusinessesasitprovidesameasureofhowsuccessfulthebusinessesareatattractingandretainingassets.Whennetflowsarepositive,theyarebereferredtoasnetinflows.Conversely,negativenetflowsarereferredtoasnetoutflows.

Assetsundermanagementandadministration(AUMA)isafinancialmeasureofthesizeoftheCompany.ItiscomprisedofAUMandAUA.AUMincludesassetsofgeneralaccount,consistingoftotalinvestedassetsand

segregatedfundsnetassets,andexternalclientassetsforwhichweprovideinvestmentmanagementservices,

consistingofmutualfund,institutionalassetmanagementandotherfundnetassets.AUAareassetsforwhichweprovideadministrativeservicesonly.Assetsundermanagementandadministrationisacommonindustrymetricforwealthandassetmanagementbusinesses.

OurGlobalWAMbusinessalsomanagesassetsonbehalfofothersegmentsoftheCompany.GlobalWAMManagedAUMAisafinancialmeasureequaltothesumofGlobalWAM’sAUMAandassetsmanagedbyGlobalWAMon

behalfofothersegments.ItisanimportantmeasureoftheassetsmanagedbyGlobalWAM.

ConsolidatedcapitalservesasafoundationofourcapitalmanagementactivitiesattheMFClevel.Consolidatedcapitaliscalculatedasthesumof:(i)totalequityexcludingaccumulatedothercomprehensiveincome(“AOCI”)oncashflowhedges;(ii)post-taxCSM;and(iii)certainothercapitalinstrumentsthatqualifyasregulatorycapital.ForregulatoryreportingpurposesundertheLICATframework,thenumbersarefurtheradjustedforvariousadditionsordeductionstocapitalasmandatedbytheguidelinesdefinedbyOSFI.

Financialleverageratioisadebttoequityratio.Theratioiscalculatedasthesumoflong-termdebt,capitalinstrumentsandpreferredsharesandotherequityinstrumentsdividedbythesumoflong-termdebt,capital

instruments,equityandpost-taxCSM.

Page5

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FINANCIALHIGHLIGHTS

(Canadian$inmillionsunlessotherwisestatedand