SAVE TOWARDS. and find out how the GOVERNMENT CAN HELP YOU PAY FOR IT

HERITAGE EDUCATION FUNDS RESP GUIDE REGISTERED EDUCATION SAVINGS PLAN Over a 40-year period, a university graduate earns $1.1 million more than a college graduate and earns on average $1.5 million more than a high school graduate. 1 1 Council of Ontario Universities, University Works: 2017 Employment Report SAVE TOWARDS your child s post-secondary EDUCATION and find out how the GOVERNMENT CAN HELP YOU PAY FOR IT

2 THE COST RESP GUIDE HOW MUCH WILL IT COST? The estimated cost of a 4-year undergraduate degree from a Canadian university in 2036 could exceed $138,000. 1 Year of Birth Year of School Entrance Basic 4 Year Tuition 1 4 year Tuition Including Expenses 2 2018 2036 $90,060 $138,556 2017 2035 $85,771 $134,300 2016 2034 $81,735 $130,100 2015 2033 $77,895 $126,000 2014 2032 $74,300 $122,100 2013 2031 $70,900 $118,300 2012 2030 $67,700 $114,600 2011 2029 $64,700 $111,100 2010 2028 $61,800 $107,600 2009 2027 $59,000 $104,300 2008 2026 $56,300 $101,100 2007 2025 $53,700 $98,000 2006 2024 $51,300 $95,100 2005 2023 $49,000 $92,200 2004 2022 $46,800 $89,500 2003 2021 $44,700 $86,800 2002 2020 $42,600 $84,200 Today s average cost of a 4 year program beginning in 2017/2018 1,2 $32,400 $74,000 2016 / 2017 ANNUAL TUITION BY FIELD OF STUDY (National average) 3 Nursing Arts Engineering Law Dentistry $5,634 $5,842 $8,099 $13,642 $22,297 1 This amount represents tuition for four years. Source: Actuarial Report on the Canada Student Loans Program as at July 31, 2014, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions Canada, 2014. 2 Expenses include student tuition fees, books, shelter, food and transportation. The resources assessed include student earnings, assets and parental contributions. Students are first separated into three groups based on their living arrangement. Source: Actuarial Report on the Canada Student Loans Program as at July 31, 2014, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions Canada, 2014. 3 Source: Stats Canada report, September 6, 2017.

RESP GUIDE ABOUT RESPS 3 ABOUT RESPS AN EDUCATION SAVINGS VEHICLE An RESP is an education savings plan that is registered by the federal government, through the Canada Revenue Agency. INCLUDES GOVERNMENT GRANTS The Canada Education Savings Grant ( CESG ) provides up to $7,200 per child 1. The Canada Learning Bond ( CLB ) provides up to $2,000 per child for qualifying families 1. Provincial government grants and incentives are available to qualifying families depending on family net income and/or residency. OFFERS TAX BENEFITS Investment earnings on contributions up to $50,000 are taxsheltered until withdrawn by the student (beneficiary), taxed in the student s tax bracket. OFFERS LOWER RISK INVESTMENTS Subscribers contributions and government grants are conservatively invested in lower risk fixed-income securities such as bonds and GICs that typically earn a competitive risk adjusted return. PROVIDES MORE POTENTIAL INCOME Income (earned in the plans) is pooled, and may be invested in a diversified portfolio of corporate bonds, Canadian equities, US and Canadian Exchange Traded Funds ( ETFs ). The aim of this investment strategy is to increase returns through diversification of products and stock market exposure. INCLUDES ELIGIBLE SCHOOLS Students can attend full-time or part-time programs in Canada or abroad. Eligible institutions include all universities, community colleges, CEGEP 2, private vocational schools, distance education and correspondence courses 1. IF BENEFICIARY DOES NOT PURSUE POST-SECONDARY EDUCATION Subscribers will receive their net contributions after the maturity date. There are many options available if the student does not pursue post-secondary education, including transferring to another child, transferring money 3 to an RRSP, RDSP or withdrawing the income as an accumulated income payment 1. ANYONE CAN START SAVING Parents, grandparents, other family members and friends can all help to save towards a child s post-secondary education. 1 Certain conditions apply. See prospectus for full details. 2 CEGEP means Collège d enseignement général et professionnel. 3 You may also be allowed to withdraw and transfer the accumulated income of up to $50,000 of earnings per subscriber from your RESP to your RRSP, your spouse s RRSP (provided he/she is a joint subscriber) or your spousal RRSP.

4 THE GRANTS RESP GUIDE GOVERNMENT PROGRAMS Today, many parents take advantage of Canadian Government Grants to help fund their child s post-secondary education. CANADA EDUCATION $7,200 SAVINGS GRANT LIFETIME MAXIMUM PER ELIGIBLE CHILD CANADA EDUCATION SAVINGS GRANT (CESG) 1 Paid on first: $2,500 of annual contribution $500 of annual contribution Net family income $45,916 2 or less More than $45,916 2 to $91,831 2 Over $91,831 2 Basic CESG 20% = $500 20% = $500 20% = $500 Additional CESG 20% = $100 10% = $50 nil Annual total 40% = $600 30% = $550 20% = $500 Lifetime maximum $7,200 $7,200 $7,200 $2,000 CANADA LEARNING BOND LIFETIME MAXIMUM PER ELIGIBLE CHILD CANADA LEARNING BOND (CLB) 1 Initial payment when opening the plan $500 Annual CLB payment years 1 15 $100 Lifetime maximum $2,000 1 Certain conditions apply. See prospectus for full details. 2 This amount is indexed each year based on the rate of inflation.

RESP GUIDE KEY RESP BENEFITS 5 THE BENEFITS OF STARTING EARLY 1 The EARLIER your child is enrolled in an RESP, the LONGER your savings have time to grow. Start SAVING today and benefit from the POWER OF COMPOUND GROWTH. $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 START EARLY. SAVE OFTEN. STAY INVESTED. $40,000 $30,000 $20,000 $10,000 $0 Newborn 2 4 6 8 10 Age of child when starting RESP contributions Income earned on RESP contributions CESG Income earned on CESG 1 This hypothetical illustration is based on annual non-insured contributions of $2,500 and excludes fees. The income that would be earned is assumed to be a hypothetical rate of 5.50% gross per annum, compounded monthly, over 18 years.

6 KEY RESP BENEFITS RESP GUIDE THE BENEFIT OF GOVERNMENT GRANTS & TAX SHELTERING 1 This is a hypothetical illustration to demonstrate the advantages of tax sheltering and the Canada Education Savings Grant, which are the key benefits of investing in an RESP investment product vs. in a non-resp investment product 1. Over 18 years you could gain $23,000 or MORE! The total value of your investments may increase if you qualify for the additional Canada Education Savings Grant, Canada Learning Bond, and/or province-specific grants and incentives. $91,265 Value Of Investment after 18 Years $68,184 Value Of Investment after 18 Years $23,184 $6,309 $7,200 $32,756 $45,000 $45,000 NON-RESP INVESTMENT PRODUCT (NOT Tax-Sheltered) 5.50% Growth Your total personal contributions over 18 years in a non-resp investment product Compound income earnings on your investment in a non-resp investment product RESP INVESTMENT PRODUCT (Tax-Sheltered) 5.50% Growth Your total personal contributions over 18 years in an RESP investment product Compound income earnings on your investment in an RESP investment product Maximum CESG of $7,200 2 Compound income earnings on CESG 1 This hypothetical illustration is based on annual non-insured contributions of $2,500 and excludes fees. The income that would be earned is assumed to be a hypothetical rate of 5.50% gross per annum, compounded monthly, over 18 years. For the non-resp investment product, an annual individual income of $65,000 is assumed and an Ontario-based tax rate of 24% has been applied to the income earnings. Individual circumstances and actual results may vary. 2 This assumes the basic CESG which is equal to 20% of the total annual contributions to a maximum of $500 per eligible child, per calendar year. Certain conditions apply. See prospectus for full details.

RESP GUIDE THE SOLUTION 7 WILL YOUR CHILD DEPEND ON STUDENT LOANS? A $32,400 student loan will result in $57,036 REPAYMENT 1 Including interest! $24,636 1 $32,400 Cost of post-secondary program in 2017/2018 $32,400 2 RESP $17,802 3 contributions + Income on contributions + Government Grants 4 + Grant income 5 OR Interest $32,400 1 Student Loan LOAN This hypothetical illustration demonstrates the key benefit of investing with an RESP versus obtaining a student loan. You Have Options Who will fund your child s education? $ $ Borrow the money Mortgage your home Pay-as-you-go Let your child earn the money or depend on student loans Withdraw funds from your personal savings, retirement funds or investments Start saving with an RESP The average Canadian student debt load is approximately $34,000 6 It will take a graduate on average 10 years to pay off student loans 6 In 2014-2015 alone, more than 495,000 students borrowed money 6 1 The student loan repayment schedule is based on a 14.5 year timeline where the graduate takes advantage of the 6-month grace period. Interest has been calculated using prime (3%) + 5%. Source: CanLearn Loan Repayment Estimator as of October 2017. 2 This example illustrates how much you may need to contribute to an RESP for a newborn child, invested over an 18 year period, to achieve a hypothetical end result of approximately $32,400 required for post-secondary education. This amount includes RESP contributions, the Canada Education Savings Grant (CESG) and income earned thereon. The lifetime maximum for the CESG is $7,200 per child. Certain conditions apply. See prospectus for full details. 3 This amount is calculated as $86 per month for 18 years and excludes fees. 4 Certain conditions apply. See prospectus for full details. 5 Income is calculated as a hypothetical rate of 5.5% growth (net of fees) as interest rates vary for different investment products and over time. 6 Sources: National Post, May 2016; The Globe and Mail, May 2016; Government of Canada, Canada Student Loans Program, April 2017.

8 ABOUT HERITAGE RESP GUIDE THE HERITAGE ADVANTAGE Why choose Heritage as your Registered Education Savings Plan provider? OVER 50Years OF EXPERIENCE Heritage Education Funds is a Canadian owned company and is one of the leading distributors of group Registered Education Saving Plans ( RESPs ) with over 50 years in RESP experience. Our large network of RESP Representatives have been helping families save for their children s post-secondary education since 1965. OVER 455,000 BENEFICIARIES Our subscribers include parents, grandparents, family members and family friends across Canada. Together we have empowered over 455,000 students with post-secondary education. $2.65 Billion IN ASSETS Heritage Educational Foundation (the Foundation ) is a not-forprofit Canadian corporation governed by its board of directors. The Foundation has $2.65 billion in assets under management as at June 30, 2017. $2.04 Billion IN PAYOUTS 1 As of September 18, 2017, the Foundation has paid out over $2.04 billion to subscribers and beneficiaries since inception. OVER $189 Million PAID OUT EACH YEAR IN THE LAST 4 YEARS The Foundation has returned over $189 million a year over the last 4 years to subscribers and beneficiaries in principal, educational assistance payments and sales charge refunds. In 2016, the total payouts exceeded $266 million. LOWER RISK INVESTMENTS Subscribers net contributions and government grants are invested in stable, lower risk investments that earn a competitive risk adjusted return. RESP income has more earning potential through investments in a mix of corporate bonds, Canadian equities, US and Canadian Exchange Traded Funds ( ETFs ) that trade on a stock exchange in Canada that have a designated rating 2. 1 These payouts consist of subscribers contributions (less applicable fees), refunds of sales charges, educational assistance payments ( EAPs ) (consisting of the beneficiary s share of pooled income or self-determined income, government grants and income on government grants) and top ups of the EAPs. 2 Certain conditions apply. See prospectus for full details.

RESP GUIDE WHO WE WORK WITH 9 WHO WE WORK WITH FOUNDATION AND REGISTRAR Heritage Educational Foundation DEPOSITORY Scotiabank TRUSTEE AND CUSTODIAN RBC Investor Services Trust PORTFOLIO ADVISERS CIBC Wood Gundy (TD Wealth as sub-advisor) Guardian Capital Scotia Institutional Asset Management TD Asset Management Inc. and Yorkville Asset Management Inc. SCHOLARSHIP PLAN DEALER & INVESTMENT FUND MANAGER Heritage Education Funds Inc. INSURANCE PROVIDER Sun Life Assurance Company of Canada EXTERNAL LEGAL COUNSEL McMillan LLP AUDITOR KPMG LLP (Chartered Professional Accountants, Licensed Public Accountants)

10 HERITAGE PORTFOLIO RESP GUIDE HOW IS MY MONEY INVESTED? Heritage offers a smart approach to investing to give you peace of mind: Your contributions and government grants are 100% invested in various lower risk investments that typically earn a competitive risk adjusted return. To increase your returns over the lifetime of the plan, pooled income that is earned may be invested in a mix of equities. Canadian equities US and Canadian ETFs Investment-grade corporate bonds Income Contributions less fees Principal Government Bonds (federal, provincial and municipal) Guaranteed Investment Certificates ( GICs ) Mortgage backed securities and guaranteed mortgages

RESP GUIDE HERITAGE PORTFOLIO 11 CURRENT ASSET WEIGHTINGS Heritage Plans, Asset Weighting for the period ending June 30, 2017 1 Sector Allocations % of Market Value Federal Bonds 44.7% Equities 22.9% Provincial Bonds 14.2% Principal Protected Notes 9.0% Corporate Financial 7.7% Institution Bonds Short-Term Investments 1.5% THE VALUE OF LONG-TERM SAVINGS Annual compound returns 2 as at June 30, 2017: 2.65% 4.16% 3.79% 4.90% 1-Year 3-Year 5-Year 10-Year 1 Source: Heritage Educational Foundation. Past performance is not indicative of future results. 2 Past performance is not indicative of future results.

12 THE HERITAGE PLAN RESP RESP GUIDE HOW DOES THE HERITAGE PLAN WORK? 1. Your contributions (less fees) 1 are returned at maturity. 2. Subscribers who selected the scholarship option will have up to 25%, up to 50% or up to 100% of sales charges 2,3 returned at maturity, depending on the scholarship option selected. 3. If you miss contributions and your plan is inactive at maturity, your plan will mature under the self-determined option so that you retain your contributions (less fees) and income. Maturity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Enrollment Period Eligibility for CESG Contribution period Delay maturity up to July 31 st prior to the beneficiary s 21 st birthday Select pay-out option within 180 days of the maturity date, but no later than the maturity date. Maturity date may be delayed or advanced by up to 2 years 4. IF YOUR BENEFICIARY DOES NOT PURSUE POST-SECONDARY STUDIES, YOU CAN: 1. Request a refund of contributions less fees at maturity. 2. Change the beneficiary to another beneficiary 4. 3. Withdraw income as an accumulated income payment ( AIP ) 5 as taxable income. 4. Transfer the income to your RRSP, your spouse s RRSP (provided he/she is a joint subscriber) or your spousal RRSP 5. 5. Request a rollover of income into an RDSP 4. 1 Please see prospectus for a full list and details of all fees associated with the Heritage Plans. 2 The amount of the sales charges returned to subscribers at maturity under each of the scholarship options 1, 2 or 3 will depend on the amount of funds available in the sales charges refund account. 3 Sales charges are not returned under the self-determined option. 4 Certain conditions apply. See prospectus for full details. 5 Accumulated income may be withdrawn as taxable income by the subscriber less an additional federal tax of 20% (12% federal and 8% provincial for residents of Quebec) or, if transferred to an RRSP, up to a limit of $50,000 per subscriber (subject to RRSP contribution room).

RESP GUIDE THE HERITAGE PLAN RESP 13 EDUCATIONAL ASSISTANCE PAYMENTS (EAPs) SELF-DETERMINED OPTION Typically for students pursuing programs of study of less than 2 years. All plan income and government grants (if applicable) paid to the student. Subject to tax. EAP QUALIFICATION CRITERIA In Canada: a minimum 3 week program of study Outside of Canada:»» Full-time: minimum 3 week program of study at a university or minimum 13 week program of study at all other foreign educational institutions»» Part-time: minimum 13 week program anywhere in the world END 35 YEARS RESP Lifetime Limit SCHOLARSHIP OPTION Provides 3 payment options and is typically for students pursuing 2 to 4 year programs. OPTION 1 OPTION 2 OPTION 3 One payment in 2 nd year of studies 100% income, grant and grant income with EAP Up to 25% of sales charges returned at maturity Payment in 2 nd and 3 rd year of studies 1/2 income, grant and grant income with 1 st EAP, remaining balance paid with 2 nd EAP Up to 50% of sales charges returned at maturity Payment in 2 nd, 3 rd, and 4 th year of studies 1/3 income, grant and grant income with 1 st EAP, half of remaining balance paid with 2 nd EAP, remaining balance paid with 3 rd EAP Up to 100% of sales charges returned at maturity Each EAP consists of a portion of government grants, income earned on government grants, income earned on contributions (less fees) and may include a non-discretionary payment to enhance an EAP 1. 1 This is a payment (non-discretionary) made to beneficiaries within a maturing beneficiary group, which represents: i) the amount remaining from plans that terminated and/or transferred out prior to their maturity date, less applicable refunds of sales charges (pre-maturity attrition) and/or ii) any EAPs that were not paid to beneficiaries due to ineligibility (post-maturity attrition). Please see prospectus for full details on pre- and post-maturity attrition.

14 KEEP IN TOUCH RESP GUIDE IMPORTANCE OF TWO WAY COMMUNICATION An RESP can be a long term commitment and, as in any relationship, it is important to communicate and keep each other informed. Heritage provides you with various documents by mail or electronically to keep you well informed about your plan: A WELCOME PACKAGE includes a trade confirmation and is issued upon enrollment. Your ANNUAL STATEMENT OF ACCOUNT is provided by the end of March. It covers the following key areas: Annual and lifetime activity of the plan Plan review and illustration of benefits Requesting delivery of plan documentation The Heritage Educational Foundation ANNUAL REPORT is available upon request by March 30 th. MANAGEMENT REPORT OF FUND PERFORMANCE AND AUDITED FINANCIAL STATEMENTS are available upon request by March 30 th. INTERIM FINANCIAL STATEMENTS are available upon request by August 31 st. GO BEYOND RECYCLING TO KEEP OUR PLANET GREEN. If you re looking for more ways to conserve the environment and save yourself time and money, receiving and viewing your documentation online can really make a difference. You can always access your Statement of Account and all annual publications at HeritageRESP.com. TAKE ACTION AND STAY INFORMED ABOUT YOUR INVESTMENT! Keep Heritage up to date should your personal and/or financial information change. Stay informed and ask questions about your plan. Stay on top of your investments by reviewing all reports, statements and materials we send to you.

RESP GUIDE NATIONWIDE PROGRAMS 15 LET US KNOW HOW ELSE WE CAN HELP YOU Our affiliated companies deliver great value to Heritage subscribers and beneficiaries through nationwide referral programs. HERITAGE FINANCIAL GROUP LIMITED HERITAGE EDUCATIONAL FOUNDATION PORTFOLIO MANAGEMENT SERVICES REGISTERED EDUCATION SAVINGS PLANS The Heritage Plans and the Impression Plan Heritage Education Funds Inc. provides RESP solutions to those wishing to save for a child s future postsecondary education. Yorkville Asset Management Inc. provides investment solutions to high net-worth private client investors to Ontario, British Columbia and Alberta residents only.

IMPORTANCE OF POST-SECONDARY EDUCATION Average salary of a Barista earning $12 per hour is approximately $22,150 1 Average salary of a 2005 graduate with a college diploma was $33,900 1 the year after graduation. After 8 years, the average salary grew to approximately $54,000 1 increased by 59%. Average salary of a 2005 graduate with a university degree was $45,200 1 the year after graduation. After 8 years, the average salary grew to approximately $74,900 1 increased by 66%. EARNINGS OVER AN 8-YEAR PERIOD Fine Arts Social Science Business Health Services Engineering $301,700 2 $413,200 2 $515,700 2 $519,900 2 $636,600 2 Graduates with a bachelor degree earned the above, over an 8 year period after graduation (2005 2013) 1 Source: Barista or Better? New Evidence on the Earnings of Post-Secondary Education Graduates: A Tax Linkage Approach. Education Policy Research Initiative 2016. 2 Salaries have been adjusted to reflect 2015 dollar values, accounting for inflation. Source: Canadian Union for Public Employees (CUPE) inflation calculator. FOR MORE INFORMATION CONTACT: Heritage Education Funds Inc. 2005 Sheppard Ave. E., Suite 700,Toronto, ON M2J 5B4 Phone: 416.502.2500 Toll-free: 1.800.739.2101 Fax: 416.502.2555 Email: CustomerCare@HeritageRESP.com Heritage RESPs are scholarship plans issued under the sponsorship of the Heritage Educational Foundation. Units of Heritage RESPs are offered by prospectus only, a copy of which can be obtained from the registered dealer, Heritage Education Funds Inc. at HeritageRESP.com. These securities may not be appropriate for all investors and are subject to certain risk factors. See the prospectus for details. HeritageRESP.com Heritage Education Funds (Heritage) is the trade name of Heritage Education Funds Inc. 2017, Heritage Education Funds Inc. 1026-HST-ENG/10.17