C.S.T. Consultants Inc. Canadian Scholarship Trust Plan Sponsor Canadian Scholarship Trust Foundation 2235 Sheppard Avenue East, Suite 1600 Toronto, Ontario M2J 5B8 1.877.333.RESP (7377) Investment Fund Manager and Distributor C.S.T. Consultants Inc. 2235 Sheppard Avenue East, Suite 1600 Toronto, Ontario M2J 5B8 Trustee RBC Investor Services Trust 155 Wellington Street West, 2nd Floor Toronto, Ontario M5V 3L3 Auditor Deloitte LLP Bay Adelaide East 22 Adelaide Street West, Suite 200 Toronto, Ontario M5H 0A9 Bank Royal Bank of Canada Royal Bank Plaza South Tower 200 Bay Street, 10th Floor Toronto, Ontario M5J 2J5 Canadian Scholarship Trust Family Savings Plan Semi-Annual Financial Statements Unaudited For updates on your Plan account, login to Online Services at www.cst.org In Quebec, Canadian Scholarship Trust Plan is distributed by C.S.T. Consultants Inc. Scholarship Plan Brokerage Firm. April 30, 2016 F.P.O 2002 M1-E (2016-05) CST Financl_Semi-Stmnt_Cvr_ENG_Final pv_01_12_15.indd 7 2016-06-14 9:23 AM
Contents Statements of Financial Position 1 Statements of Comprehensive Income 2 Statements of Changes in Net Assets Attributable to Subscribers and Beneficiaries 2 Statements of Cash Flows 3 Schedule I Statement of Investment Portfolio 4 Notes to the Financial Statements 6 Government Grants (Appendix I to Schedule I) 10 Unaudited semi-annual financial statements The accompanying semi-annual financial statements have not been reviewed by the external auditors of the Plan in accordance with assurance standards applicable to a review of interim financial statements.
Statements of Financial Position As at April 30, 2016 and October 31, 2015 (in thousands of Canadian dollars) Apr 30, 2016 Oct 31, 2015 (Audited) Assets Cash and cash equivalents $ 15,538 $ 13,385 Receivables for securities sold 111 567 Investments, at fair value (Note 4 and Schedule I) 223,765 214,918 Accrued interest and other receivables 37,738 34,796 Government grants receivable 276 137 277,428 263,803 Liabilities Payables for securities purchased 209 573 Accounts payable, accrued liabilities and unclaimed subscribers funds 817 677 Net Assets Attributable to Subscribers and Beneficiaries 276,402 1,026 1,250 262,553 Represented by: Non-Discretionary Funds Accumulated income held for future education assistance payments 51,315 50,564 Subscribers deposits (Note 6) 148,159 141,735 Government grants 54,083 51,428 Income on Government grants Unrealized Gains (Losses) 20,292 2,553 18,480 346 $ 276,402 $ 262,553 1 Family Savings Plan
Statements of Comprehensive Income For the six months ended April 30, 2016 and 2015 (in thousands of Canadian dollars) Income Apr 30, 2016 Apr 30, 2015 Interest for allocation to subscriber accounts $ 3,129 $ 2,936 Realized gains (losses) on sale of investments 267 921 Change in unrealized gains (losses) 2,207 5,600 Dividends 319 254 5,922 9,711 Expenses Administration and account maintenance fees (Note 3(a)) 1,458 1,338 Portfolio management fees 142 139 Custodian and Trustee fees 23 21 Independent Review Committee fees 2 2 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries $ 4,297 1,625 1,500 $ 8,211 Statements of Changes in Net Assets Attributable to Subscribers and Beneficiaries For the six months ended April 30, 2016 and 2015 (in thousands of Canadian dollars) Apr 30, 2016 Apr 30, 2015 Net Assets Attributable to Subscribers and Beneficiaries, Beginning of Period $ 262,553 $ 239,036 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries 4,297 8,211 Transfers from internal and external plans 11,281 15,578 11,282 19,493 Receipts Net increase in Subscribers deposits (Note 6) 6,424 7,208 Disbursements Government grants repaid (net of receipts) (587) (534) Payments to beneficiaries Education assistance payments (5,461) (5,109) Government grants (1,982) (1,709) Return of interest Total payments to beneficiaries Receipts less Disbursements Change in Net Assets Attributable to Subscribers and Beneficiaries (123) (7,566) (1,729) 13,849 (105) (6,923) (249) 19,244 Net Assets Attributable to Subscribers and Beneficiaries, End of Period $ 276,402 $ 258,280 Family Savings Plan 2
Statements of Cash Flows For the six months ended April 30, 2016 and 2015 (in thousands of Canadian dollars) Apr 30, 2016 Apr 30, 2015 Operating Activities Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries $ 4,297 $ 8,211 Net disbursements for investment transactions Items not affecting cash (6,281) (7,124) Realized (gains) losses on sale of investments (267) (921) Change in unrealized (gains) losses (2,207) (5,600) Change in non-cash operating working capital (Increase) decrease in Accrued interest and other receivables (2,942) (1,981) Increase in Government grants receivable (139) (118) Decrease in Accounts payable, accrued liabilities and unclaimed subscribers funds 140 (792) Cash flow used in Operating Activities (7,399) (8,325) Financing Activities Transfers from internal and external plans Government grants repaid (net of receipts) 11,281 (587) 11,282 (534) Net increase in Subscribers deposits (Note 6) 6,424 7,208 Payments to beneficiaries (7,566) (6,923) Cash flow from Financing Activities 9,552 11,033 Net increase in Cash and cash equivalents 2,153 2,708 Cash and cash equivalents, Beginning of Period Cash Cash equivalents 342 13,043 1,104 11,428 13,385 12,532 Cash and cash equivalents, End of Period Cash 588 478 Cash equivalents 14,950 14,762 $ 15,538 $ 15,240 Supplemental cash flow information: Withholding Taxes $ 29 $ 7 Interest Income Received 2,901 2,778 3 Family Savings Plan
Schedule I Statement of Investment Portfolio As at April 30, 2016 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Interest Maturity Par Fair Average Security Rate Date Value ($) Value ($) Cost ($) Security Rate Date Value ($) Value ($) Cost ($) Bonds Bonds (continued) Federal 13.9% Canada Housing Trust 1.70 15 Dec 2017 3,380 3,429 3,397 Corporate 23.3% (continued) Caisse Centrale Desjardins 2.44 17 Jul 2019 500 512 500 Canada Housing Trust 1.75 15 Jun 2018 4,175 4,250 4,181 Canadian Imperial Bank of Canada Housing Trust 1.95 15 Jun 2019 3,430 3,526 3,453 Commerce 1.90 26 Apr 2021 120 120 120 Canada Housing Trust 1.25 15 Jun 2021 5,150 5,135 5,129 Canadian Imperial Bank of Commerce 3.42 26 Jan 2026 580 586 580 Canada Housing Trust 3.80 15 Jun 2021 400 449 438 Canadian National Railway Government of Canada 1.50 1 Jun 2026 1,870 1,869 1,873 Company 2.89 14 Aug 2020 720 707 734 Government of Canada 4.00 1 Jun 2041 300 411 415 Enbridge Gas Distribution Inc. 3.31 11 Sep 2025 300 314 300 Government of Canada 1.50 1 Dec 2044 550 773 744 Enbridge Gas Distribution Inc. 4.00 22 Aug 2044 260 273 259 Government of Canada 3.50 1 Dec 2045 1,100 1,444 1,490 Ford Credit Canada Limited 3.14 14 Jun 2019 500 513 500 Government of Canada 1.25 1 Dec 2047 300 380 354 Ford Credit Canada Limited 2.92 16 Sep 2020 570 580 570 Inter-American Development Fortis BC Inc. 4.00 28 Oct 2044 280 291 280 Bank 4.40 26 Jan 2026 480 562 540 Health Care REIT Inc. 3.35 25 Nov 2020 260 264 259 22,228 22,014 Honda Canada Finance Inc. 2.16 18 Feb 2021 460 463 460 HSBC Bank Canada 2.49 13 May 2019 860 873 865 Municipal and Provincial 47.1% HSBC Bank Canada 1.82 7 Jul 2020 680 672 680 Province of Alberta 1.70 15 Dec 2017 1,935 1,959 1,941 HSBC Bank Canada 2.45 29 Jan 2021 610 615 610 Province of Alberta 4.00 1 Dec 2019 3,875 4,237 4,258 HSBC Bank Canada 2.91 29 Sep 2021 780 801 788 Province of Alberta 1.25 1 Jun 2020 200 199 199 Manufacturers Life Insurance Province of Alberta 3.45 1 Dec 2043 100 103 103 Company 2.64 15 Jan 2025 250 251 250 Province of British Columbia 4.30 18 Jun 2042 4,200 5,202 4,843 Manufacturers Life Insurance Province of British Columbia 3.20 18 Jun 2044 1,500 1,565 1,433 Company 2.10 1 Jun 2025 680 665 680 Province of Manitoba 1.85 5 Sep 2018 675 687 679 Manufacturers Life Insurance Province of Manitoba 4.05 5 Sep 2045 3,510 4,052 4,187 Company 3.18 22 Nov 2027 610 613 610 Province of New Brunswick 4.40 3 Jun 2019 1,335 1,461 1,478 Mercedes Benz Canada Inc. 2.27 26 Mar 2018 340 344 342 Province of New Brunswick 3.65 3 Jun 2024 6,360 6,959 6,827 Mercedes Benz Canada Inc. 1.78 19 Aug 2019 520 519 520 Province of New Brunswick 4.80 3 Jun 2041 3,200 3,948 3,914 National Bank of Canada 1.74 3 Mar 2020 440 440 440 Province of Ontario 4.20 8 Mar 2018 4,215 4,463 4,559 North West Redwater Province of Ontario 4.40 2 Jun 2019 3,550 3,893 3,924 Partnership 2.10 23 Feb 2022 420 407 419 Province of Ontario 4.60 2 Jun 2039 5,320 6,658 6,178 North West Redwater Province of Ontario 4.65 2 Jun 2041 4,900 6,243 5,819 Partnership 3.20 22 Jul 2024 200 201 200 North West Redwater Province of Ontario 2.90 2 Dec 2046 740 717 695 Partnership 4.25 1 Jun 2029 700 726 698 Province of Quebec 4.50 1 Dec 2017 3,517 3,715 3,834 North West Redwater Province of Quebec 4.50 1 Dec 2018 3,310 3,596 3,656 Partnership 3.70 23 Feb 2043 230 203 229 Province of Quebec 4.50 1 Dec 2019 3,315 3,689 3,698 North West Redwater Province of Quebec 3.75 1 Sep 2024 8,370 9,387 8,886 Partnership 4.05 22 Jul 2044 210 196 209 Province of Saskatchewan 1.95 1 Mar 2019 2,270 2,320 2,280 Omers Realty Corporation 2.86 23 Feb 2024 380 389 380 Omers Realty Corporation 3.33 12 Nov 2024 70 73 70 Corporate 23.3% 75,054 73,391 Bank of Montreal 2.84 4 Jun 2020 580 606 604 Bank of Montreal 1.88 31 Mar 2021 290 290 290 Bank of Montreal 2.12 16 Mar 2022 400 402 400 Bank of Montreal 3.12 19 Sep 2024 10 10 10 Bank of Montreal 3.34 8 Dec 2025 340 342 340 Bank of Nova Scotia 2.13 15 Jun 2020 120 122 120 Bank of Nova Scotia 2.09 9 Sep 2020 570 576 570 Bank of Nova Scotia 3.37 8 Dec 2025 640 643 640 Bank of Nova Scotia 2.58 30 Mar 2027 1,050 996 1,042 bcimc Realty Corporation 2.84 3 Jun 2025 560 563 560 Bell Canada 3.25 17 Jun 2020 300 315 314 Bell Canada 3.00 3 Oct 2022 500 517 498 BMW Canada Inc. 2.33 26 Sep 2018 140 142 141 BMW Canada Inc. 2.27 26 Nov 2018 390 396 390 Caisse Centrale Desjardins 2.80 19 Nov 2018 260 268 265 Real Estate Asset Liquidity Trust Series Class A 2.36 12 Jan 2025 240 226 229 Real Estate Asset Liquidity Trust Series Class A 3.24 12 May 2025 250 247 250 Rogers Communications Inc. 5.38 4 Nov 2019 360 402 407 Rogers Communications Inc. 4.70 29 Sep 2020 400 444 440 Rogers Communications Inc. 5.34 22 Mar 2021 400 457 454 Royal Bank of Canada 2.03 15 Mar 2021 670 675 670 Royal Bank of Canada 1.97 2 Mar 2022 720 717 714 Royal Bank of Canada 2.48 4 Jun 2025 750 732 750 Royal Bank of Canada 3.31 20 Jan 2026 740 744 740 Royal Bank of Canada 3.45 29 Sep 2026 1,340 1,345 1,387 Shaw Communications Inc. 5.65 1 Oct 2019 800 886 912 TELUS Corporation 5.05 23 Jul 2020 500 559 563 TELUS Corporation 3.20 5 Apr 2021 500 521 507 TELUS Corporation 2.35 28 Mar 2022 500 497 499 TELUS Corporation 3.75 10 Mar 2026 210 219 208 Family Savings Plan 4
Schedule I Statement of Investment Portfolio (continued) As at April 30, 2016 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Security Rate Date Value ($) Value ($) Cost ($) Bonds (continued) Corporate 23.3% (continued) Thomson Reuters Corporation 3.31 12 Nov 2021 150 155 150 Toronto Dominion Bank 1.69 2 Apr 2020 630 630 630 Toronto Dominion Bank 2.05 8 Mar 2021 150 149 150 Toronto Dominion Bank 2.69 24 Jun 2025 1,750 1,724 1,723 Toronto Dominion Bank 2.98 30 Sep 2025 1,570 1,563 1,556 Toronto Dominion Bank 4.86 4 Mar 2031 560 594 560 Toronto Dominion Bank 5.76 18 Dec 2106 310 328 346 Toyota Credit Canada Inc. 2.80 21 Nov 2018 100 103 100 Toyota Credit Canada Inc. 2.48 19 Nov 2019 560 574 560 TransCanada Pipelines Limited 3.30 17 Jul 2025 750 758 749 Ventas Canada Finance Limited 3.30 1 Feb 2022 350 354 350 VW Credit Canada Inc. 2.80 20 Aug 2018 360 364 368 VW Credit Canada Inc. 2.50 1 Oct 2019 440 441 440 VW Credit Canada Inc. 2.15 24 Jun 2020 750 738 749 Wells Fargo Financial Corporation Canada 2.94 25 Jul 2019 680 709 698 Wells Fargo Financial Corporation Canada 2.22 15 Mar 2021 560 566 560 37,220 37,155 Total Fixed Income Investments 84.3% 134,502 132,560 Number of Fair Average Security Securities Value ($) Cost ($) Exchange-traded Funds ishares Core S&P 500 Hedged to CAD Index ETF 436 9,648 10,804 Total Equities and ETFs 6.1% Cash and cash equivalents 9.6% Total Portfolio Assets 100.0% Investments Allocation (Note 4) Government Grants (Appendix I) Cash and cash equivalents (Appendix I) Total Investment Fund Represented by: Cash and cash equivalents Investments, at fair value 9,648 10,804 15,235 15,235 159,385 158,599 79,615 77,848 303 303 239,303 236,750 15,538 223,765 239,303 5 Family Savings Plan
Notes to the Financial Statements Six months ended April 30, 2016 and 2015 (Unaudited, in thousands of Canadian dollars) Note 1. Nature of Operations October 31, 2015. These interim financial statements were prepared in accordance with International Accounting Standard The Canadian Scholarship Trust Family Savings Plan (the Plan ) is ( IAS ) 34, Interim Financial Reporting. a self-determined Education Savings Plan that was established on These financial statements were approved by the Board of March 1, 1997. The objective of the Plan is to assist parents and the Foundation on June 9, 2016. others to save for the post-secondary education of children. The Plan (b) Basis of measurement is managed and distributed by C.S.T. Consultants Inc. ( C.S.T.C. ), a These financial statements have been prepared on the historical wholly-owned subsidiary of the Canadian Scholarship Trust cost basis except for financial instruments classified as at fair Foundation (the Foundation ). The Plan s registered place of value through profit or loss ( FVTPL ), which are measured at business is 1600-2235 Sheppard Avenue East, Toronto, Ontario, fair value. Canada. Payments are made by a subscriber to an account maintained by (c) Future accounting standard the Plan s trustee on behalf of one or more beneficiaries. Payments of The following new accounting standard has been issued by the sales charges are made from the subscriber s initial contribution. The International Accounting Standards Board ( IASB ). This new principal accumulated over the term of the subscriber s education standard is not yet effective and the Plan has not completed its savings plan agreement (the Agreement ) is returned in whole or in assessment of the impact on the financial statements. part at any time at the request of the subscriber. A beneficiary is IFRS 9 Financial Instruments ( IFRS 9 ) deemed to be a qualified student upon receipt by the Foundation of IFRS 9 was issued in November 2009 to replace IAS 39 evidence of enrolment in a qualifying educational program at an Financial Instruments: Recognition and Measurement ( IAS 39 ). eligible institution. Education assistance payments ( EAPs ) paid to a IFRS 9 will be effective for the Plan s financial statements beneficiary from the Plan are determined by the subscriber and are during its fiscal 2019 year. paid from the income earned on the subscriber s principal. IFRS 9 introduces new requirements for the classification There are a number of government grants that may be available and measurement of financial assets, reducing the number of to beneficiaries including the Canada Education Savings Grant classifications from those in IAS 39. The approach in IFRS 9 is Program ( CESG ), the Canada Learning Bond ( CLB ), the based on how an entity manages its financial instruments in the Alberta Centennial Education Savings Grant ( ACES ), the Quebec context of its business model and the contractual cash flow Education Savings Incentive ( QESI ), the Saskatchewan Advantage characteristics of the financial assets. Grant for Education Savings ( SAGES ) and the British Columbia Training and Education Savings Grant ( BCTESG ) (collectively, (d) Financial instruments Government Grants ). The Alberta government announced that no The Plan recognizes financial assets and financial liabilities when new grants will be made under the ACES program after it becomes a party to a contract. Financial assets and financial July 31, 2015. liabilities, with the exception of those classified as FVTPL, are The Plan collects Government Grants, which are credited measured at fair value plus transaction costs on initial directly into subscribers Agreements and invests these funds in recognition. Financial assets and financial liabilities classified as accordance with the Plan s investment policies. The Government FVTPL are measured at fair value on initial recognition and Grants, along with investment income earned thereon, are paid to transaction costs are expensed when incurred. Investments, at qualified students. fair value have been designated as FVTPL Agreements are registered with appropriate government Measurement in subsequent periods depends on the authorities if all required information is provided, and once classification of the financial instrument. The financial assets registered are subject to the rules for Registered Education Savings and financial liabilities of the Plan are classified as follows: Plans under the Income Tax Act (Canada). The current tax legislation provides that income credited on subscribers principal is not taxable Financial asset or financial liability Classification income of the subscriber unless withdrawn as an Accumulated Investments, at fair value FVTPL (i) Income Payment subject to certain eligibility requirements. The Cash and cash equivalents Loans and receivables deposits are not deductible for income tax purposes and are not (ii) taxable when returned to the subscriber. Payments made to a Accrued interest and other receivables Loans and receivables (ii) beneficiary, including EAPs, Government Grants and investment Receivables for securities sold Loans and receivables (ii) income earned on Government Grants will constitute taxable Accounts payable, accrued liabilities and income of that beneficiary in the year that the payments are made. unclaimed subscriber funds Other financial liabilities (iii) Payables for securities purchased Other financial liabilities (iii) Note 2. Significant Accounting Policies (a) Statement of Compliance These financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ) on a basis consistent with accounting policies as described in Note 2 of the audited annual financial statements for the year ended (i) Financial assets are designated as FVTPL when acquired principally for the purpose of trading. Financial assets classified as FVTPL are measured at fair value, with changes recognized in Net Income and Comprehensive Income Attributable to Subscribers and Beneficiaries. (ii) Loans and receivables are non-derivative financial assets that have fixed or determinable payments and are not quoted in an active market. Subsequent to Family Savings Plan 6
Notes to the Financial Statements (continued) Six months ended April 30, 2016 and 2015 (Unaudited, in thousands of Canadian dollars) Note 2. Significant Accounting Policies (continued) Cash and cash equivalents Cash and cash equivalents include deposit balances with banks and securities with a purchase date to maturity of 90 days or less and includes term deposits, treasury bills and bankers (d) Financial instruments (continued) acceptances. initial recognition, loans and receivables are carried at amortized cost using the (j) Foreign currency effective interest method. Loans and receivables are considered for impairment when they are past due or when other objective evidence is received that a The functional and presentation currency of the Plan is the specific counterparty will default. Canadian Dollar. (iii) Other financial liabilities are liabilities that are not derivative liabilities or To the extent applicable in any period, foreign currency classified as FVTPL. Subsequent to initial recognition, other financial liabilities purchases and sales of investments and foreign currency are carried at amortized cost using the effective interest method. dividend and interest income are translated into Canadian dollars at the rate of exchange prevailing at the time of the The effective interest method is a method of calculating the transactions. Realized and unrealized foreign currency gains or amortized cost of a financial instrument and allocating interest losses on investments are included in the Statements of over the relevant period. The effective interest rate is the rate Comprehensive Income in Realized gains (losses) on sale of that discounts estimated future cash flows (including all investments and Change in unrealized gains (losses), transaction costs and other premiums or discounts) through the respectively. expected life of the financial instrument to the net carrying amount on initial recognition. (k) Critical accounting estimates and judgments (f) Investment transactions and income recognition Investment transactions are accounted for on a trade-date basis. Interest for allocation to subscriber accounts represents the coupon interest received by the Plan accounted for on an accrual basis. The Plan does not amortize premiums paid or discounts received on the purchase of fixed income securities. Dividends and distributions are accrued as of the ex-dividend date and ex-distribution date, respectively. Realized gains (losses) on the sale of investments and Change in unrealized gains (losses) are calculated with reference to the average cost of the related investments and are recognized in the period that such gains (losses) occur. (g) Subscribers deposits and sales charges Subscribers deposits reflect amounts received from subscribers and do not include future amounts receivable on outstanding Agreements. A sales charge is required as part of the initial contribution under each Agreement. Sales charges collected during the reporting period are paid to C.S.T.C. (h) Income taxes The Plan is exempt from income taxes under Section 146.1 of the Income Tax Act (Canada). (i) (e) Investment valuation Investments, at fair value include the following types of securities: bonds, money market securities, and exchange- traded funds ( ETF ). The fair value of fixed income securities that are not publicly traded is measured by using either the average bid price from multiple dealers, or by the present value of contractual cash flows, discounted at current market rates. Interest accrued at the reporting date is included in Accrued interest and other receivables. The fair value of securities that are publicly traded in an active market is measured using bid prices at the reporting date. Note 7 provides further guidance on fair value measurements. When preparing the financial statements, C.S.T.C management makes estimates and judgments that affect the reported amounts recognized and disclosed in the financial statements. These estimates and judgments have a direct effect on the measurement of transactions and balances recognized in the financial statements. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ. Note 3. Related Party Transactions Related party transactions are measured at the exchange amount, which is the amount agreed between the parties. (a) Distribution and Administration of the Plan The Foundation, as the Plan sponsor, has appointed C.S.T.C. as the Scholarship Plan Dealer and Investment Fund Manager to distribute and administer, respectively, the Plan. The distribution and administration agreements are renewable annually on November 1. Administration and account maintenance fees are paid to the Foundation. Administration fees are annual fees of 1% of the total amount of principal, Government Grants and income earned thereon. During the six months ended April 30, 2016, $1,458 was recognized as an expense for Administration and account maintenance fees (2015 $1,338). Administration and account maintenance fees included in Accounts payable, accrued liabilities and unclaimed subscribers funds at April 30, 2016 was $189 (October 31, 2015 $180). Sales charges paid by subscribers from their initial contributions are paid to C.S.T.C. as compensation for the sale and distribution of savings plans. During the six months ended April 30, 2016, $14 was paid to C.S.T.C. from sales charges collected (2015 $10). Related amounts included in Accounts payable, accrued liabilities and unclaimed subscribers funds at April 30, 2016 was $629 (October 31, 2015 $629). 7 Family Savings Plan
Notes to the Financial Statements (continued) Six months ended April 30, 2016 and 2015 (Unaudited, in thousands of Canadian dollars) Note 3. Related Party Transactions (continued) curve analysis, sector and credit selection. There is reduced risk to interest rate changes for cash and cash equivalents due to their short-term nature. The Plan s holdings of debt instruments by maturity are as follows: (b) Fees paid for services of an Independent Review Committee The Independent Review Committee ( IRC ) provides independent review and oversight of conflicts of interest relating Debt Instruments by Maturity Date % of Total Investment Fund to the management of the Plans. For the six-month period April 30, Oct 31, ended April 30, 2016, the Plan recognized an expense of $2 2016 2015 (2015 $2) for the services of the IRC. IRC fees included in Less than 1 year 7% 6% Accounts payable accrued liabilities and unclaimed subscribers 1-3 years 16% 16% funds at April 30, 2016 was $nil (October 31, 2015 $nil). 3-5 years 17% 23% (c) Fees paid to monitor and manage the portfolio managers Greater than 5 years 50% 45% Included in Portfolio management fees on the Statements of Comprehensive Income is $23 (2015 $18) charged by Total debt instruments 90% 90% C.S.T.C. for expenses incurred to monitor and manage the As at April 30, 2016, if prevailing interest rates had portfolio managers. Included in Accounts payable, accrued increased by 1%, the fair value of the Total Investment Fund liabilities and unclaimed subscribers funds is $6 owing to of $239,303 (October 31, 2015 $228,303) as per the C.S.T.C. at April 30, 2016 ($6 at October 31, 2015) relating to Schedule I Statement of Investment Portfolio would have these expenses. decreased by $17,000 (October 31, 2015 $13,000). If prevailing interest rates had decreased by 1%, the fair value of Note 4. Investment Holdings the Total Investment Fund would have increased by $19,000 (October 31, 2015 $15,000). This 1% change assumes a The investment holdings are disclosed in Schedule I Statement of parallel shift in the yield curve with all other variables held Investment Portfolio and the related Appendix I to the schedule, constant. In practice, actual results may differ materially. which is explained below. The Government Grants are invested collectively in a separate ii. Other price risk fund with Government Grants of other RESP plans administered by Other price risk is the risk that the value of a financial C.S.T.C. The Government Grant principal received and income instrument will fluctuate as a result of changes in market earned thereon are separately tracked for each subscriber s prices, other than those arising from interest rate risk. Agreement. The portfolio holdings are allocated across all plans Factors specific to an individual investment, its issuer or based on the proportion of principal and income attributable to other factors affecting all instruments traded in a market or Agreements within each plan (see Appendix I to Schedule I). market segment affect other price risk. The asset class that is most impacted by other price risk is the ETFs of the Plan Note 5. Risks Associated with Financial and Government Grant asset pool, which represents 10% (October 31, 2015 10%) of the Total Investment Fund as at Instruments April 30, 2016. As at April 30, 2016, if equity and underlying indices In the normal course of business the Plan may be exposed to a prices had increased or decreased by 1%, with all other variety of risks arising from financial instruments. The Plan s variables held constant, the fair value of the Total Investment exposures to such risks are concentrated in its investment holdings Fund as per Schedule I Statement of Investment Portfolio and are related to credit risk and liquidity risk. would have increased or decreased by approximately $300 The Plan s risk management process includes monitoring (October 31, 2015 $200). In practice, actual results may compliance with the Plan s investment policy. The Plan manages the differ materially. effects of these financial risks to the Plan portfolio performance by retaining and overseeing professional external investment managers. (b) Credit risk The investment managers regularly monitor the Plan s positions, Credit risk refers to the ability of the issuer of debt securities to market events, and manage the investment portfolio within the make interest payments and repay principal. The Plan s portfolio constraints of the investment policy and mandate. is comprised of bonds issued or guaranteed by federal or provincial governments along with corporate debt instruments (a) Market risk i. Interest rate risk with a minimum approved credit rating as set by Canadian Securities Administrators. The Plan has a concentration of Interest rate risk is the risk of a change in the fair value or cash flows of the Plan s investments in interest-bearing financial instruments as a result of fluctuations in market interest rates. There is an inverse relationship between changes in interest rates and changes in the fair value of bonds. This risk is actively managed using duration, yield investments in government and government guaranteed bonds, which are considered to be high credit quality investments thereby moderating credit risk. Family Savings Plan 8
Notes to the Financial Statements (continued) Six months ended April 30, 2016 and 2015 (Unaudited, in thousands of Canadian dollars) Note 5. Risks Associated with Financial Instruments (continued) The changes in Subscribers deposits for the six-month period ended April 30, 2016 and 2015 are as follows: (b) Credit risk (continued) April 30, 2016 April 30, 2015 The Plan s credit risk exposure is summarized below: Payments from subscribers $ 4,434 $ 3,801 April 30, 2016 October 31, 2015 Inter-plan principal transfers 17,374 17,910 % of Total % of Total Return of principal (15,384) (14,503) Investment Amount Investment Amount Credit rating Fund (in thousands) Fund (in thousands) Net increase in Subscribers deposits 6,424 7,208 AAA 18% $ 42,676 20% $ 45,043 AA/AAH/AAL 30% 71,974 29% 65,625 A/AH/AL 30% 72,916 31% 70,128 BBB 5% 10,959 3% 6,871 R-1 6% 15,083 6% 13,043 Short-term unrated 0% 589 1% 4,952 Note 6. Subscribers Deposits Balance, Beginning of Period 141,735 130,422 Balance, End of Period $ 148,159 $ 137,630 Note 7. Fair Value Measurements and Disclosures Total Debt instruments 89% $ 214,197 90% $ 205,642 Estimates of fair value used for measurement and disclosure are The Dominion Bond Rating Service ( DBRS ) was the designed to approximate amounts that would be received to sell an primary source for obtaining credit ratings. Secondary sources asset, or paid to discharge a liability, in an orderly transaction used include Standard & Poor s Financial Services LLC and between market participants. Moody s Investors Service, Inc. The carrying values of other financial instruments such as Cash and cash equivalents, Accrued interest and other receivables, (c) Liquidity risk Receivables for securities sold, Government grants receivable, Liquidity risk is the risk that the Plan may not be able to meet Accounts payable, accrued liabilities and unclaimed subscribers its financial obligations as they come due. The Plan s exposure funds and Payables for securities purchased approximate their fair to liquidity risk is concentrated in principal repayments to values as these financial instruments are short term in nature. subscribers and EAPs to beneficiaries. The Plan primarily The following table presents the level in the fair value hierarchy invests in securities that are traded in active markets and can be into which the Plan s financial instruments that are carried at fair readily sold. The Plan retains sufficient cash and cash equivalents value in the Statements of Financial Position are categorized: positions to meet liquidity requirements by utilizing cash i. Level 1 financial instruments are valued using quoted market forecasting models that reflect the distribution of subscribers prices. deposits and accumulated income. All other financial liabilities ii. Level 2 financial instruments are valued using directly or are short term and due within one year. indirectly observable inputs. iii. Level 3 financial instruments are valued using unobservable (d) Currency risk inputs (including the use of assumptions based on the best Currency risk is the risk that the value of a financial instrument information available). will fluctuate due to changes in foreign exchange rates. The Plan holds ETFs that invest in U.S. equities and are hedged to Assets Measured at Fair Value as of April 30, 2016 Canadian dollars by the ETF provider. Level 1 Level 2 Level 3 Total Fixed income securities $ $ 198,659 $ $ 198,659 Equity Securities 25,106 25,106 Total Investments, at fair value $ 25,106 $ 198,659 $ $ 223,765 Assets Measured at Fair Value as of October 31, 2015 Level 1 Level 2 Level 3 Total Fixed income securities $ $ 192,257 $ $ 192,257 Equity Securities 22,661 22,661 Total Investments, at fair value $ 22,661 $ 192,257 $ $ 214,918 9 Family Savings Plan For the six month period ended April 30, 2016 and year ended October 31, 2015, there were no transfers between Levels 1 or 2.
Government Grants Appendix I to Schedule I Statement of Investment Portfolio As at April 30, 2016 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Interest Maturity Par Fair Average Security Rate Date Value ($) Value ($) Cost ($) Security Rate Date Value ($) Value ($) Cost ($) Bonds Bonds (continued) Federal 19.8% Provincial 29.9% (continued) Canada Housing Trust 2.05 15 Jun 2017 3,700 3,754 3,788 Province of British Columbia 6.35 18 Jun 2031 2,800 4,048 3,990 Canada Housing Trust 1.75 15 Jun 2018 1,220 1,242 1,227 Province of British Columbia 4.70 18 Jun 2037 4,920 6,274 6,017 Canada Housing Trust 2.05 15 Jun 2018 10,079 10,326 10,321 Province of British Columbia 4.95 18 Jun 2040 3,700 4,953 4,777 Canada Housing Trust 2.05 1 Nov 2018 251 186 187 Province of British Columbia 4.30 18 Jun 2042 9,030 11,184 10,388 Canada Housing Trust 1.95 15 Jun 2019 5,500 5,654 5,646 Province of British Columbia 3.20 18 Jun 2044 1,000 1,043 956 Canada Housing Trust 1.75 1 Aug 2019 280 246 247 Province of Manitoba 5.50 15 Nov 2018 1,000 1,108 1,154 Canada Housing Trust 1.26 1 Dec 2019 1,475 1,272 1,277 Province of Manitoba 3.85 1 Dec 2021 1,000 1,115 1,088 Canada Housing Trust 1.29 1 Feb 2020 3,776 3,216 3,243 Province of Manitoba 4.40 5 Sep 2025 2,800 3,248 3,148 Canada Housing Trust 3.75 15 Mar 2020 3,685 4,049 4,090 Province of Manitoba 4.10 5 Mar 2041 5,400 6,196 6,101 Canada Housing Trust 1.46 1 Apr 2021 204 202 202 Province of Manitoba 3.35 5 Mar 2043 1,300 1,324 1,298 Canada Housing Trust 3.80 15 Jun 2021 130 146 144 Province of Manitoba 4.05 5 Sep 2045 8,325 9,611 9,903 Canada Housing Trust 2.40 15 Dec 2022 9,103 9,594 9,512 Province of Manitoba 4.30 15 Nov 2051 450 522 512 Canada Housing Trust 2.90 15 Jun 2024 7,860 8,517 8,440 Province of New Brunswick 4.45 26 Mar 2018 400 425 435 Canada Housing Trust 1.95 15 Dec 2025 8,000 7,983 7,895 Province of New Brunswick 4.40 3 Jun 2019 1,400 1,533 1,556 Canada Post Corporation 4.36 16 Jul 2040 375 484 472 Province of New Brunswick 2.85 2 Jun 2023 200 209 196 Government of Canada 0.00 8 Sep 2016 110 110 110 Province of New Brunswick 3.65 3 Jun 2024 900 985 944 Government of Canada 0.00 22 Sep 2016 1,660 1,655 1,655 Province of New Brunswick 6.47 30 Nov 2027 5,569 6,959 6,908 Government of Canada 0.25 1 May 2017 1,025 1,021 1,022 Province of New Brunswick 5.65 27 Dec 2028 1,195 1,534 1,466 Government of Canada 1.25 1 Aug 2017 750 755 760 Province of New Brunswick 6.55 17 Oct 2030 600 819 839 Government of Canada 1.50 1 Sep 2017 5,091 5,146 5,134 Province of New Brunswick 5.50 27 Jan 2034 2,075 2,698 2,441 Government of Canada 1.25 1 Feb 2018 3,975 4,014 4,035 Province of New Brunswick 4.65 26 Sep 2035 710 844 739 Government of Canada 4.25 1 Jun 2018 450 483 485 Province of New Brunswick 4.55 26 Mar 2037 1,700 2,000 1,986 Government of Canada 1.25 1 Sep 2018 400 405 408 Province of New Brunswick 4.80 26 Sep 2039 1,200 1,468 1,494 Government of Canada 1.75 1 Sep 2019 2,150 2,222 2,230 Province of New Brunswick 3.55 3 Jun 2043 2,000 2,047 2,016 Government of Canada 1.50 1 Mar 2020 2,050 2,106 2,113 Province of Newfoundland and Government of Canada 3.50 1 Jun 2020 5,775 6,399 6,479 Labrador 2.30 2 Jun 2025 1,100 1,059 1,095 Government of Canada 0.75 1 Sep 2020 3,200 3,191 3,179 Province of Newfoundland and Government of Canada 0.75 1 Mar 2021 3,950 3,928 3,900 Labrador 3.00 2 Jun 2026 1,200 1,214 1,199 Government of Canada 3.25 1 Jun 2021 4,150 4,634 4,666 Province of Newfoundland and Government of Canada 2.75 1 Jun 2022 1,500 1,650 1,649 Labrador 6.15 17 Apr 2028 600 779 799 Government of Canada 1.50 1 Jun 2023 2,925 2,983 2,822 Province of Newfoundland and Government of Canada 2.50 1 Jun 2024 1,000 1,090 1,091 Labrador 4.65 17 Oct 2040 1,350 1,571 1,593 Government of Canada 2.25 1 Jun 2025 5,844 6,256 6,276 Province of Nova Scotia 5.80 1 Jun 2033 2,775 3,745 3,481 Government of Canada 1.50 1 Jun 2026 5,619 5,616 5,600 Province of Nova Scotia 4.40 1 Jun 2042 1,600 1,910 1,813 Government of Canada 8.00 1 Jun 2027 3,925 6,466 6,547 Province of Nova Scotia 3.45 1 Jun 2045 1,700 1,754 1,708 Government of Canada 5.75 1 Jun 2029 8,775 12,831 12,910 Province of Nova Scotia 3.50 2 Jun 2062 600 633 599 Government of Canada 5.75 1 Jun 2033 7,700 11,890 11,841 Province of Ontario 1.90 8 Sep 2017 950 963 958 Government of Canada 5.00 1 Jun 2037 16,922 25,377 23,489 Province of Ontario 4.20 8 Mar 2018 4,099 4,340 4,479 Government of Canada 4.00 1 Jun 2041 13,995 19,177 18,287 Province of Ontario 2.10 8 Sep 2018 2,460 2,519 2,546 Government of Canada 3.50 1 Dec 2045 16,900 22,202 21,706 Province of Ontario 4.40 2 Jun 2019 4,000 4,388 4,386 Government of Canada 2.75 1 Dec 2048 8,200 9,469 9,118 Province of Ontario 4.20 2 Jun 2020 2,000 2,225 2,155 Government of Canada 2.75 1 Dec 2064 3,800 4,614 4,386 Province of Ontario 4.00 2 Jun 2021 6,315 7,077 6,824 Kreditanstalt Fur Province of Ontario 3.15 2 Jun 2022 1,675 1,812 1,734 Wiederaufbau Global 5.05 4 Feb 2025 1,211 1,463 1,493 Province of Ontario 8.90 18 Aug 2022 1,000 1,417 1,422 Muskrat Falls Funding Trust 3.83 1 Jun 2037 4,500 5,193 5,005 Province of Ontario 2.85 2 Jun 2023 4,700 4,979 4,580 Muskrat Falls Funding Trust 3.86 1 Dec 2048 900 1,082 1,116 Province of Ontario 3.50 2 Jun 2024 4,690 5,162 4,847 230,299 226,203 Province of Ontario 2.60 2 Jun 2025 3,650 3,748 3,707 Province of Ontario 8.25 22 Jun 2026 450 681 689 Provincial 29.9% Province of Ontario 7.60 2 Jun 2027 2,095 3,128 3,009 Province of Alberta 4.00 1 Dec 2019 155 169 171 Province of Ontario 6.50 8 Mar 2029 3,250 4,590 4,536 Province of Alberta 1.25 1 Jun 2020 1,902 1,890 1,883 Province of Ontario 6.20 2 Jun 2031 1,500 2,115 2,090 Province of Alberta 2.35 1 Jun 2025 1,000 995 992 Province of Ontario 5.85 8 Mar 2033 6,425 8,914 8,767 Province of Alberta 4.45 15 Dec 2025 1,785 2,079 2,052 Province of Ontario 6.35 15 Oct 2034 200 240 230 Province of Alberta 3.90 1 Dec 2033 1,972 2,179 2,120 Province of Ontario 5.60 2 Jun 2035 3,200 4,410 3,855 Province of Alberta 3.45 1 Dec 2043 1,895 1,959 1,962 Province of Ontario 4.70 2 Jun 2037 7,145 8,983 8,190 Province of British Columbia 4.70 1 Dec 2017 3,975 4,213 4,379 Province of Ontario 4.60 2 Jun 2039 6,340 7,936 7,415 Province of British Columbia 1.65 19 Apr 2021 1,500 1,495 1,498 Province of Ontario 4.65 2 Jun 2041 14,515 18,502 17,519 Province of British Columbia 3.30 18 Dec 2023 2,275 2,495 2,358 Province of Ontario 3.50 2 Jun 2043 5,700 6,132 6,064 Province of British Columbia 5.70 18 Jun 2029 2,000 2,684 2,675 Province of Ontario 3.45 2 Jun 2045 23,100 24,789 23,727 Family Savings Plan 10
Government Grants (continued) Appendix I to Schedule I Statement of Investment Portfolio As at April 30, 2016 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Interest Maturity Par Fair Average Security Rate Date Value ($) Value ($) Cost ($) Security Rate Date Value ($) Value ($) Cost ($) Bonds (continued) Bonds (continued) Provincial 29.9% (continued) Municipal 1.1% (continued) Province of Ontario 2.90 2 Dec 2046 6,500 6,301 5,962 Municipal Finance Authority of Province of Quebec 4.50 1 Dec 2017 2,550 2,694 2,808 British Columbia 2.50 19 Apr 2026 760 753 758 Province of Quebec 4.50 1 Dec 2018 1,000 1,087 1,116 Region of Peel 5.10 29 Jun 2040 350 445 439 Province of Quebec 4.50 1 Dec 2019 1,550 1,725 1,711 Region of Peel 3.85 30 Oct 2042 300 321 317 Province of Quebec 11.00 15 Aug 2020 3,000 4,195 4,332 Province of Quebec 4.50 1 Dec 2020 1,000 1,136 1,057 13,806 13,706 Province of Quebec 3.00 1 Sep 2023 3,000 3,210 3,201 Corporate 29.5% Province of Quebec 3.50 1 Sep 2023 225 241 241 407 East Development Group 2.81 18 Dec 2016 375 376 380 Province of Quebec 3.75 1 Sep 2024 6,775 7,599 7,193 407 East Development Group 6.75 27 Jul 2039 1,272 1,699 1,549 Province of Quebec 2.50 1 Sep 2026 171 173 173 Arrow Lakes Power Province of Quebec 6.00 1 Oct 2029 2,000 2,728 2,693 Corporation 5.52 5 Apr 2041 847 973 847 Province of Quebec 6.25 1 Jun 2032 3,575 5,097 5,002 Bank of Montreal 1.12 12 Jun 2017 253 253 253 Province of Quebec 4.25 1 Dec 2032 350 386 384 Bank of Montreal 1.48 29 Mar 2018 7,662 7,705 7,662 Province of Quebec 5.25 1 Jun 2034 3,000 3,897 3,800 Bank of Montreal 2.10 6 Oct 2020 2,462 2,497 2,462 Province of Quebec 6.50 15 Feb 2035 1,000 1,496 1,463 Bank of Montreal 1.88 31 Mar 2021 1,781 1,784 1,783 Province of Quebec 5.75 1 Dec 2036 2,690 3,790 3,348 Bank of Montreal 4.61 10 Sep 2025 8,650 10,199 10,011 Province of Quebec 5.00 1 Dec 2038 2,940 3,848 3,045 Bank of Nova Scotia 1.84 30 Jun 2016 165 165 165 Province of Quebec 6.00 15 Feb 2040 8,000 11,897 11,489 Bank of Nova Scotia 4.10 8 Jun 2017 5,870 6,051 6,129 Province of Quebec 5.00 1 Dec 2041 11,400 15,194 14,524 Bank of Nova Scotia 2.24 22 Mar 2018 9,090 9,229 9,236 Province of Quebec 4.25 1 Dec 2043 4,500 5,445 5,175 Bank of Nova Scotia 1.33 1 May 2018 1,035 1,032 1,028 Province of Quebec 5.00 15 Feb 2045 1,450 1,974 1,901 Bank of Nova Scotia 2.46 14 Mar 2019 17,303 17,741 17,721 Province of Quebec 3.50 1 Dec 2045 10,000 10,786 10,111 Bank of Nova Scotia 2.40 28 Oct 2019 8,593 8,807 8,793 Province of Quebec 3.50 1 Dec 2048 2,000 2,176 2,043 Bank of Nova Scotia 2.09 9 Sep 2020 2,723 2,754 2,753 Province of Quebec 5.00 15 Feb 2050 1,500 2,103 2,014 Bank of Nova Scotia 3.27 11 Jan 2021 6,968 7,404 7,407 Province of Saskatchewan 3.20 3 Jun 2024 80 86 83 Bankers Hall L.P. 4.38 20 Nov 2023 2,507 2,681 2,507 Province of Saskatchewan 6.40 5 Sep 2031 4,037 5,723 5,700 Caisse Centrale Desjardins 2.80 19 Nov 2018 5,893 6,078 6,097 Province of Saskatchewan 4.75 1 Jun 2040 1,400 1,757 1,727 Canadian Imperial Bank of Province of Saskatchewan 3.90 2 Jun 2045 3,700 4,171 4,093 Commerce 1.13 8 Jun 2017 721 722 721 Province of Saskatchewan 2.75 2 Dec 2046 2,000 1,824 1,753 Canadian Imperial Bank of Commerce 2.35 18 Oct 2017 6,680 6,780 6,800 346,759 334,600 Canadian Imperial Bank of Commerce 1.70 9 Oct 2018 2,394 2,410 2,393 Municipal 1.1% Canadian Imperial Bank of City of Montreal 5.45 1 Dec 2019 200 226 227 Commerce 1.90 26 Apr 2021 60 60 60 City of Montreal 3.00 1 Sep 2025 831 846 837 Canadian Pacific Railway City of Montreal 4.10 1 Dec 2034 375 405 399 Company 6.91 1 Oct 2024 510 359 375 City of Montreal 6.00 1 Jun 2043 375 538 530 Capital Desjardins Inc. 5.19 5 May 2020 7,790 8,696 8,711 City of Ottawa 4.60 14 Jul 2042 500 597 590 Capital Desjardins Inc. 4.95 15 Dec 2026 3,333 3,759 3,731 City of Toronto 4.50 2 Dec 2019 225 248 250 CBC Monetization Trust 4.69 15 May 2027 2,527 2,934 2,729 City of Toronto 3.50 6 Dec 2021 200 217 219 Central 1 Credit Union 1.31 24 Nov 2016 1,352 1,353 1,353 City of Toronto 3.90 29 Sep 2023 1,200 1,333 1,329 Cogeco Cable Inc. 4.18 26 May 2023 1,469 1,536 1,528 City of Toronto 2.95 28 Apr 2035 300 282 277 CSS Partnership 6.92 31 Jul 2042 2,173 2,949 2,782 City of Toronto 3.50 2 Jun 2036 1,309 1,323 1,304 Dutch Municipal Bank, BNG 5.15 7 Mar 2025 143 169 170 City of Toronto 5.20 1 Jun 2040 350 449 446 Enbridge Inc. 1.73 13 Mar 2017 792 787 787 City of Toronto 4.70 10 Jun 2041 325 391 383 Enbridge Inc. 4.57 11 Mar 2044 431 405 400 City of Toronto 3.80 13 Dec 2042 225 237 232 EUROFIMA Maple Bond 4.55 30 Mar 2027 913 1,039 1,022 City of Toronto 4.15 10 Mar 2044 225 252 246 GE Capital Canada Funding City of York 2.60 15 Dec 2025 1,900 1,894 1,853 Company 1.62 15 Feb 2022 1,966 1,915 1,803 City of York 4.00 31 May 2032 300 328 329 GE Capital Canada Funding City of York 4.05 1 May 2034 525 577 578 Company 2.18 6 Feb 2023 3,071 3,120 3,071 Municipal Finance Authority of Greater Toronto Airport British Columbia 4.80 1 Dec 2017 100 106 107 Authority 6.45 30 Jul 2029 1,632 2,067 2,006 Municipal Finance Authority of Heathrow Funding Limited 3.25 21 May 2027 414 418 410 British Columbia 5.10 20 Nov 2018 350 383 389 HSBC Bank Canada 2.08 26 Nov 2018 11,025 11,080 11,091 Municipal Finance Authority of HSBC Bank Canada 2.45 29 Jan 2021 1,266 1,277 1,265 British Columbia 2.05 2 Jun 2019 1,000 1,020 1,024 HSBC Bank Canada 2.91 29 Sep 2021 12,220 12,570 12,429 Municipal Finance Authority of Kraft Canada Inc. 1.98 6 Jul 2020 3,800 3,792 3,800 British Columbia 4.88 3 Jun 2019 350 387 392 Labrador Island Link Funding Municipal Finance Authority of Trust 3.76 1 Jun 2033 500 569 586 British Columbia 3.75 26 Sep 2023 225 248 251 11 Family Savings Plan
Government Grants (continued) Appendix I to Schedule I Statement of Investment Portfolio As at April 30, 2016 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Interest Maturity Par Fair Average Security Rate Date Value ($) Value ($) Cost ($) Security Rate Date Value ($) Value ($) Cost ($) Bonds (continued) Bonds (continued) Corporate 29.5% (continued) Corporate 29.5% (continued) Labrador Island Link Funding Wells Fargo Financial Trust 3.86 1 Dec 2045 2,600 3,106 3,131 Corporation Canada 3.04 29 Jan 2021 808 853 843 Labrador Island Link Funding Wells Fargo Financial Trust 3.85 1 Dec 2053 800 973 1,008 Corporation Canada 3.46 24 Jan 2023 839 902 889 Loblaw Companies Limited 6.50 22 Jan 2029 1,827 2,281 2,268 WTH Car Rental 2.54 20 Aug 2019 2,960 2,977 2,960 Loblaw Companies Limited 6.54 17 Feb 2033 595 750 737 Manufacturers Life Insurance 340,978 340,141 Company 2.81 21 Feb 2024 1,569 1,585 1,605 Total Fixed Income Investments 80.3% 931,842 914,650 Manufacturers Life Insurance Company 2.64 15 Jan 2025 1,569 1,578 1,592 Number of Fair Average Manufacturers Life Insurance Security Securities Value ($) Cost ($) Company 2.10 1 Jun 2025 1,589 1,557 1,570 Equities 5.8% Manufacturers Life Insurance Agrium Inc. 15 1,570 1,716 Company 2.39 5 Jan 2026 4,728 4,655 4,696 Aimia Inc. 59 508 619 Manufacturers Life Insurance Company 3.18 22 Nov 2027 4,253 4,277 4,256 ATCO Ltd. 30 1,214 1,124 Manulife Financial Corporation 4.45 15 Dec 2026 8,146 8,243 8,423 AutoCanada Inc. 22 452 510 Maritimes and Northeast Bank of Nova Scotia 69 4,568 3,966 Pipelines Limited Partnership 4.34 30 Nov 2019 2,099 2,134 2,169 Birchcliff Energy Ltd. 109 568 623 Maritimes and Northeast Boardwalk Real Estate Investment Trust 1 61 56 Pipelines Limited Partnership 6.90 30 Nov 2019 662 723 747 Brookfield Asset Management Inc. 30 1,259 1,232 Master Asset Vehicle 0.78 15 Jul 2056 5 5 5 CAE Inc. 125 1,856 1,771 Master Asset Vehicle 0.78 15 Jul 2056 31 31 31 Milit-Air Inc. 5.75 30 Jun 2019 1,953 2,088 2,140 Canadian National Railway Company 28 2,149 2,074 National Bank of Canada 2.69 21 Aug 2017 12,060 12,271 12,334 Canadian Natural Resources Ltd. 41 1,542 1,081 NAV Canada 7.56 1 Mar 2027 3,157 4,084 3,974 Canadian Pacific Railway Company 9 1,566 1,555 North Battleford Power L.P. 4.96 31 Dec 2032 997 1,111 1,015 Canadian Western Bank 39 1,067 871 Ontrea Inc. 4.62 9 Apr 2018 1,969 2,073 2,018 Celestica Inc. 26 344 385 Ornge Issuer Trust 5.73 11 Jun 2034 3,365 3,943 3,821 Colliers International Group Inc. 4 219 248 Pearson International Fuel Dollarama Inc. 7 674 549 Facilities Corporation 5.09 9 Mar 2032 2,160 2,345 2,315 Dream Unlimited Corporation 41 317 306 Public Sector Pension Investment Board 3.27 12 Jun 2020 2,804 2,890 2,804 Empire Company Ltd. 33 680 866 Rogers Communications Inc. 6.68 4 Nov 2039 550 724 677 Enbridge Inc. 25 1,315 1,219 Royal Bank of Canada 0.95 17 Jun 2016 798 798 799 Enerflex Ltd. 116 1,392 1,431 Royal Bank of Canada 2.36 21 Sep 2017 5,390 5,468 5,478 Enerplus Corporation 52 360 334 Royal Bank of Canada 2.26 12 Mar 2018 2,590 2,630 2,630 Ensign Energy Services Inc. 20 154 169 Royal Bank of Canada 2.82 12 Jul 2018 3,029 3,116 3,132 Fairfax Financial Holdings Limited 1 935 838 Royal Bank of Canada 2.77 11 Dec 2018 27,570 28,464 28,514 Finning International Inc. 67 1,496 1,275 Royal Bank of Canada 1.43 11 Feb 2020 333 332 333 FirstService Corporation 7 394 321 Royal Bank of Canada 1.37 23 Mar 2020 5,878 5,844 5,878 Franco-Nevada Corporation 9 811 562 Royal Bank of Canada 2.03 15 Mar 2021 2,168 2,185 2,169 Royal Bank of Canada 1.97 2 Mar 2022 710 707 692 Freehold Royalties Ltd. 84 1,051 922 Shaw Communications Inc. 6.75 9 Nov 2039 1,894 2,341 2,311 GMP Capital Inc. 58 295 240 SP1 Limited Partnership 3.21 15 Jun 2019 3,026 2,865 2,804 Granite REIT 19 701 699 St. Clair Holding ULC 4.88 31 Aug 2031 463 491 491 Great Canadian Gaming Corporation 31 562 564 Strait Crossing Great-West Lifeco Inc. 17 621 549 Development Inc. 6.17 15 Sep 2031 226 202 204 Home Capital Group Inc. 43 1,607 1,320 Sun Life Financial Inc. 7.09 30 Jun 2052 3,905 4,862 5,082 IGM Financial Inc. 18 693 613 Toronto Dominion Bank 2.45 2 Apr 2019 7,943 8,162 8,171 Imperial Oil Limited 33 1,353 1,341 Toronto Dominion Bank 2.05 8 Mar 2021 820 829 820 Intact Financial Corporation 26 2,423 2,392 Toronto Dominion Bank 3.23 24 Jul 2024 12,670 13,479 13,251 Toronto Dominion Bank 2.98 30 Sep 2025 6,134 6,106 6,134 Jean Coutu Group (PJC) Inc. 3 52 48 Toronto Dominion Bank 4.86 4 Mar 2031 2,305 2,444 2,305 Laurentian Bank of Canada 8 407 399 Toronto Dominion Bank 4.78 14 Dec 2105 9,049 9,203 9,393 Loblaw Companies Limited 15 1,066 1,046 TransCanada Pipelines Limited 11.80 20 Nov 2020 1,994 2,766 3,033 Magna International Inc. 28 1,497 1,637 TransCanada Pipelines Limited 8.05 17 Feb 2039 1,553 2,304 2,492 Metro Inc. 6 247 212 UniCredit Group 2.52 29 May 2018 2,401 2,426 2,451 Methanex Corporation 28 1,219 1,208 University Health Network 5.64 8 Dec 2022 5,876 6,601 6,740 Morguard Corporation 3 438 399 Family Savings Plan 12