TMX Group Pension Plan November & December 2013Guy Aubé

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Welcome to TMX Group Pension Plan!

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• As of January 1, 2014, the CDS Plan will be closed.

• You will receive a settlement package that outlines the options around what you can do with your CDS Plan account balance.

• You are entitled to the full account balance of your contributions and the company contributions (DPSP immediate vesting)

• This will be mailed to your home address in January 2014.

Take action!

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• Your CDS Plan assets will not transfer automatically to the TMX Plan. • You have the opportunity to transfer into the voluntary RRSP with TMX

• It is up to you to enrol in the New Plan and provide instructions for your current savings assets and future contributions. If you do not submit your enrollment for the Defined Contribution Pension Plan, you will be automatically enrolled on January 1, 2014 and default to the TDAM Balanced Index Fund. In addition, TMX will begin contributions of 4% of your base salary on your behalf.

• To enrol in the TMX Plan, simply complete the enrolment form and return it to your Payroll department.

Your plan advantage

Sources of retirement income

Canada Pension Plan (CPP)

HomeOther SavingsPersonal RRSPTMX Group Pension Plan

Primary

Secondary

Old Age Security (OAS)Supplementary

Canadians need 65% to 80% pre-retirement income replacement

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Government Benefits

Request your CPP contributions & benefit statement from: www.servicecanada.gc.ca

2013Canada

Pension Plan(CPP)

Old AgeSecurity

(OAS)

Maximum $1,012.50/month$12,150/year

$549.89/month$6,599/year

Average $596.66/month$7,160/year

$515.97/month$6,192/year

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Sponsor the program

• Company contributions• Selecting investment

managers• Selecting funds• Selecting the

record keeper• Monitoring the program• Member education

TMX Group Pension

Record keeping

• Preparing statements• Developing tools• Member education• Tracking your investments• Member inquiries

Sun Life Financial Investment Managers

Funds

• Performing research• Creating the fund• Selecting the stocks

or bonds• Buying and selling

You/member

Your Account

• Making contributions• Understanding investments• Choosing investments• Monitoring savings and

investments• Filing personal information

updates• Paying fund management

fees• Paying withdrawal fees• Seeking advice

Responsibilities

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TMX Group Pension Plan • Participation is manditory• As an existing employee of CDS you will automatically join the plan as of

January 1 2014Participation

• Up to 4% of base salary• Addtitional voluntary contributions permitted up to your maximum

allowable limit as calculated by CRAEmployees contributions

• 4% of base salary• TMX will also match your contribution based on a points schedule (age plus

yrs of service; includes CDS; formula)• Points Schedule % Group match• less than 40 50%• 40 to 60 75%• more than 60 100%

Employer contributions

• 1 free withdrawal per year. $25.00 for each subsequent withdrawal.• You may withdraw additional voluntary contributions onlyWithdrawals

• ImmediateVesting/ Locking in9

Comparing the plans

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CDS TMX Group Inc

Example : Employee 51 years old, $80,000 base salary :

Example : Employee 51 years old , 10 years of service Total Points 61, $80,000 base salary

Employer contribution

3% = $2,4003% over YMPE = $867 (optional)

4% = $3,200TMX Point Matching 100% of 4% = $3,200

Employee contribution

3% = $2,4003% over YMPE = $867 (optional)

4% = $3,200

Total $6,534 (Employee $3,267 CDS $3,267)

$960012% of base salaryEmployee 4% $3,200 TMX 8% $6,400!

Investment Management Fees

Paid by CDSExample: $100,000 account , Zero fees paid by CDS employees (taxable benefit of $300.00)

Paid by you and are deducted monthly.Example: $100,000 , Invested in the TDAM Balance Fund FMF 0.30% . Total yearly FMF Cost to employee : $300.00

Voluntary RRSP

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• This program has been set up to allow you to transfer your CDS assets and take advantage of the competitive management fees of the TMX Group Pension Plan• No ongoing contributions allowed

Benefits of your plan

* Short Term Trading Policy - A 2% fee will be charged when a plan member initiates an inter fund transfer into a fund followed by an inter fund transfer out of the same fund within 30 days.

No fees to transfer between

funds*

Free guidance and support

Company contributions

Low management

fees

Instant tax savings

Convenient payroll

deduction

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How do your fees compare?

Fixed Income

Balanced

Canadian Equity

1.38%

2.16%

2.31%

Average Retail Fees*

Highest fees in Your

Plan**

0.29%

0.60%

0.60%

US Equity

Global Equity

2.36% 0.52%

2.64% 1.12%

*As at June 28, 2013, Source: BMO fund facts, TD Asset Management, Scotiabank, RBC, CIBC Investorpos**Fund Management Fees as at November 1, 2013

International Equity 2.43% 1.05%

Target Date 2.21% 0.77%

Investment basics

Understanding risk versus reward

Rew

ard

RiskLow High

Low

Hig

h

Bond (Fixed Income) Funds

Money Market Funds

Guaranteed Funds

Balanced

For illustrative purposes only

Canadian, US, Global &International Equities

Target Date Funds

Growth of $10,000 – September 2003 – September 2013

$11,964

$12,323

$16,629

$22,331

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Sep

03

Sep

04

Sep

05

Sep

06

Sep

07

Sep

08

Sep

09

Sep

10

Sep

11

Sep

12

Sep

13

$5,000

$10,000

$15,000

$20,000

$25,000

Consumer Price Index DEX 91 Day T-Bill Index

DEX Universe Bond Index S&P/TSX Composite Index

Why diversify?

• Different investments often perform differently at any given time based on economic conditions

• Lower overall risk – with exposure to higher returns of more volatile asset classes

• Built in safety – help to avoid panic selling when markets are lower

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Choosing your Investment Approach

Built FOR Me Built BY MeChoose a single Target Date Fund

Structured to coincide with a key life event, such as retirement

Asset mix automatically changes as you get closer to your target date, reducing risk over time

Pick a fund closest to your target date (investment time horizon)

Build your portfolio using different investment funds

Match your investment risk profile with a suggested asset mix

Rebalance periodically to maintain your target asset allocation

Revisit your risk tolerance periodically- it can change over time

Review at least annually

Built FOR me or Built BY me

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Built FOR me Selection of one-stop, pre-designed portfoliosSun Life Financial GraniteTM Target date Funds

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Sun Life Financial Granite Funds

• Simplifies investment decision making process• 9 new “End-date” funds focus on investment horizon – Retirement Fund,

2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050• Asset mix automatically changes each quarter• Equity exposure decreases as fund matures• Each fund holds equal Canadian and Foreign equity exposure• The series offers a unique blend of institutional funds, covering a broad

range of asset classes, geographies, investment styles and currencies

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Sun Life Financial GraniteTM Target Date Funds

Allocations for illustrative purposes onlySource: Morningstar 2013

Risk %

Retu

rn

Year indicates target year for retirement

Granite Retirement Fund

Granite 2015

Granite 2025

Granite 2020

Granite 2030

Granite 2035

Granite 2040

Granite 2045

Granite 2050

Cash

U.S. Equity

Canadian Equity

Fixed Income

International Equity

Other

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FMF*

Sun Life Financial GraniteTM 2015 Fund 0.60%

Sun Life Financial GraniteTM 2020 Fund 0.66%Sun Life Financial GraniteTM 2025 Fund 0.71%Sun Life Financial GraniteTM 2030 Fund 0.77%Sun Life Financial GraniteTM 2035 Fund 0.77%Sun Life Financial GraniteTM 2040 Fund 0.77%Sun Life Financial GraniteTM 2045 Fund 0.77%Sun Life Financial GraniteTM 2050 Fund 0.77%Sun Life Financial GraniteTM Retirement Fund 0.65%

*Fund Management Fees as at November 1, 201323

Sun Life Financial GraniteTM Target date Funds

Built BY me A range of funds that you can choose from to build

your own portfolioYou are responsible for the percentage mix you

allocate to each asset classUse the suggested asset mix from the Asset

allocation tool

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Investment risk profiler

Assess your personal risk tolerance by completing the investment risk profiler

Investment risk profiler

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Built BY meAsset Class Fund FMF* Risk

Guaranteed • SLA 1,3 & 5 Year Guaranteed N/A Low

Fixed Income • TDAM Canadian Bond Index 0.29% Low - Moderate

Balanced • Beutel Goodman Balanced• TDAM Canadian Balanced Index

0.60%0.30% Moderate

Canadian Equity• Beutel Goodman Canadian Equity• CC&L Group Canadian Q Growth• TDAM Canadian Equity Index

0.60%0.58%0.30%

Moderate – High

U.S. Equity • SLF MFS MB US Equity• TDAM US Market Index

0.52%0.31% Moderate – High

International / Global Equity

• MFS MB International Equity• TDAM International Equity Index• CC&L Q Group Global Equity• MFS MB Global Equity• TDAM Global Equity Index

1.05%0.59%1.12%1.01%0.61%

Moderate – High

*Fund Management Fees as at November 1, 2013 27

Rates of return as at September 30, 2013

Funds 1 Yr 3 Yr 5 Yr 10 Yr

TDAM Canadian Bond Index -1.45% 3.47% 5.46% 5.10%

Beutel Goodman BalancedTDAM Canadian Balanced Index

13.64%8.86%

8.17%6.06%

7.79%5.92%

7.56%6.33%

Beutel Goodman Canadian EquityCC&L Group Canadian Q GrowthTDAM Canadian Equity Index

20.69%17.23%

7.10%

9.28%8.91%4.05%

8.83%7.48%4.80%

9.90%11.61%

8.35%SLF MFS MB US EquityTDAM US Market Index

27.08%24.17%

14.59%15.89%

8.00%8.87%

4.96%4.28%

MFS MB International EquityTDAM International Equity IndexCC&L Q Group Global EquityMFS MB Global EquityTDAM Global Equity Index

28.40%29.32%31.79%32.99%26.70%

10.58%8.64%

14.91%16.20%12.54%

8.37%5.75%9.51%

10.89%7.49%

7.64%5.15%6.44%8.68%4.70%

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RebalanceTarget Asset Mix Current Asset Mix Back to target asset

mix

Rebalancing strategy Sell Equities

Buy Bonds

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I want something that’s easy to pick

I want someone else to rebalance my investments automaticallyI want to choose my investments based on when I need my moneyI want to choose my investments based on my personal investment riskI like choosing my own funds and fund managers

I want to monitor and rebalance my own portfolio

Built FOR Me Target Date Built BY Me

Built FOR me or Built BY me…?

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Monitoring with Morningstar®

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Quicktake & Investment Reports

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Your Sun Life tools

mysunlife.ca

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Asset allocation tool

The Asset allocation tool is used to determine your tolerance to risk. Select the Asset allocation hyperlink to begin

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Retirement Planner

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Tools

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Next steps

Next Steps Enrol in the TMX Group Pension Plan

• Complete your enrolment form• Return your form to the Payroll Department

TMX Group Pension Plan• Once your enrolment is completed:

• Complete the Asset Allocation tool on line • Complete the on-line Retirement Planner

Your CDS assets • To take advantage of the low fees in TMX Group Pension Plan complete

the asset transfer form • Review your Benefit Options provided by Sun Life Financial

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Take action- Register for an Access ID

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Stay connected

mysunlife.ca

1-866-733-8612 Mobile

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Statements

Your ongoing account Monitor your account & funds on a regular basis

• Check your statements• Revisit your risk tolerance• Rebalance your funds according to your risk tolerance• Review your information with a Financial Planner

Notify Sun Life Financial of changes• Address changes• Beneficiary changes

Stay involved with your plan through either:• Sun Life Financial member website@ www.mysunlife.ca• my Sun Life Mobile • Customer Care Centre @ 1-866-733-8612

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Thank you!