Mr. Paul Mahon of Great-West Lifeco reports

GREAT-WEST LIFECO ANNOUNCES SALE OF PUTNAM INVESTMENTS TO FRANKLIN TEMPLETON

Franklin Resources Inc., operating as Franklin Templeton, one of the world's largest independent and diversified asset managers, has agreed to acquire Putnam Investments from Great-West Lifeco Inc. The total potential transaction consideration and retained value are estimated to be $1.7-billion (U.S.) to $1.8-billion (U.S.). Franklin Templeton will pay upfront consideration of $950-million (U.S.) to $1-billion (U.S.), consisting of 33.33 million Franklin Templeton shares at closing and $100-million (U.S.) in cash six months after closing, and up to $375-million (U.S.) payable between three and seven years after close, tied to the growth of the partnership. Lifeco will retain PanAgora and realize the value of Putnam's seed capital, which, together with closing adjustments, are estimated to be worth $375-million (U.S.) to $425-million (U.S.). Lifeco will also retain certain deferred tax assets related to Putnam.

Lifeco, Power Corp. of Canada and Franklin Templeton have entered a strategic partnership to distribute Franklin Templeton products for the benefit of clients, distribution partners and shareholders. Lifeco will provide an initial long-term asset allocation amount of $25-billion (U.S.) assets under management (AUM) to Franklin Templeton's specialist investment managers within 12 months of closing with the potential for that amount to increase over the next several years.

"Franklin Templeton is a diversified global asset management firm, well positioned to take Putnam's strengths to the next level," said Paul Mahon, president and chief executive officer of Lifeco. "As client needs for asset management continue to evolve, Franklin Templeton's scale and breadth, together with Putnam's complementary capabilities, will drive positive outcomes for our companies, our clients and our investors."

Mr. Mahon continued, "This transaction furthers Lifeco's strategy of building and extending strategic partnerships with best-in-class asset managers to support our clients' retirement, group benefits, and personal wealth management needs."

"This is a compelling transaction for Franklin Templeton, and we are excited about the numerous opportunities that will be unlocked by this long-term strategic partnership with Power and Lifeco," said Jenny Johnson, president and chief executive officer of Franklin Templeton. "Power and Great-West Lifeco are global leaders across financial services, particularly wealth, insurance and retirement channels. With outstanding investment performance, Putnam will add complementary capabilities to our existing specialist investment managers to meet the varied needs of our clients and will increase Franklin Templeton's defined contribution AUM. We are pleased to welcome Lifeco as a strategic investor, along with the impressive team at Putnam Investments."

"Combining Putnam's asset management business with Franklin Templeton's scaled and diversified platform is an exceptional opportunity for our company," said Robert Reynolds, chief executive officer of Putnam Investments. "Critical to this transaction is the strong alignment between our organizations. We share a client-centric culture, a core belief in active management, a collaborative and research-based investment approach, and a long-held commitment to fundamental investment principles. Together, we will continue serving our clients and upholding our commitment to them and their needs. We look forward to joining Franklin Templeton in the next phase of our growth."

The transaction is expected to close in the fourth quarter of 2023, contingent on regulatory and other customary conditions. Lifeco has agreed to retain shares representing approximately 4.9 per cent of outstanding Franklin Templeton stock for a minimum five-year period.

Morgan Stanley & Co. LLC and Rockefeller Capital Management served as financial advisers and Sullivan & Cromwell LLP served as legal counsel to Lifeco and Putnam Investments.

Conference call and webcast details

Lifeco will hold a conference call and webcast on the transaction on Wednesday, May 31, 2023, at 10 a.m. ET. The call and webcast can be accessed through Lifeco's website or by phone at the following numbers.

Participants in North America:   1-800-319-4610

Participants from the Toronto area:  1 416-915-3239

Following the call, the webcast and presentation will be available on Lifeco's website. The replay of the call will be available until June 30, 2023, by calling 1-855-669-9658 or 1-604-674-8052 (passcode: 0234).

About Putnam Investments

Founded in 1937, Putnam Investments is a global money management firm with over 85 years of investment experience. At the end of January, 2023, Putnam had over $170-billion (U.S.) in assets under management. Putnam has offices in Boston, London, Munich, Singapore, Sydney and Tokyo.

About Great-West Lifeco Inc.

Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management, and reinsurance businesses. The company operates in Canada, the United States and Europe under the brands Canada Life, Empower, Putnam Investments and Irish Life. At the end of 2022, Lifeco's companies had approximately 31,000 employees, 234,500 adviser relationships and thousands of distribution partners -- all serving over 38 million customer relationships across these regions. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corp. group of companies.

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