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Ah-Shoo-Gun 2014 Annual General Meeting

2014, October, 16 | Sangita Bhalla, RVP Aboriginal Trust Services

Royal Trust Corporation of Canada

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Agenda

1. A Trust for Community

2. Overview of Ah-Shoo-Gun Trust

3. Investment Review

4. Trust Compliance

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A TRUST FOR COMMUNITY

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Purposes of a Trust

• Long term preservation of wealth for future generations

• Generate Income for spending on Band Projects:

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• Housing• Health• Education• Infrastructure• Land

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A Legacy for the Future

The Ah-Shoo-Gun Trust will provide for you,

your children &

all future generations

The Trust is your Legacy

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Primary Duties of the Trustee

• Follow the Terms of the Trust Agreement• Act Honestly and Prudently• Safeguard and Protect Trust Property• Maintain Accurate Accounts• Act Impartially

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Administrative Duties of the Trustee

• General duty not to delegate Trustee responsibilities

• Clerical record keeping and reporting – including quarterly statements, annual report

• Account to Members and to Co-Trustees

• Monitor investment performance• Prepare tax return for Trust

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AH-SHOO-GUN TRUST

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Ah-Shoo-Gun Trust Overview

• Created in 1999, with $2,000,000. to benefit present and future generations of the Mishkosiimiiniizibing First Nation

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Duration of Trust

99 years

Wind up Date: 31st December, 2097

Assets will be distributed to the First Nation

OR

Settled into another Trust

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2 Individual Trustees & 1 Corporate Trustee

As of October 2014

Corporate Trustee

Royal Trust Corporation of Canada

Sangita Bhalla Regional Vice President Aboriginal Services Group

The Trustees

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Terms of Service

Elected for 2 year term

Appointed (indefinitely)

Individual Trustees

Gary Tuesday

Patricia Green

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Income Distributions from Trust

• Applications can be made by individuals or by Chief and Council

• Applications must be for “permitted distributions” set out in Clause 3.02

• Chief and Council review applications, refuse or approve them

– If approved: application is sent to requesting trustees to proceed, within 60 days

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Income Distributions Procedure

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Permitted Use of Funds

Purchase of Land Resource rehabilitation – support traditional and commercial resource pursuits Cultural, social and community development Business and employment Infrastructure and housing Costs relating to implementation of the Trust

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Accumulated Income

Any income that is not paid out by way of applications can be either:

Recapitalised back in the Trust

OR

Council can request the income (before January 30th following the year end)

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INVESTMENT REVIEW

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2013 Highlights

$65,157.33 was received as Revenue

$37,465.83 paid out as Total Revenue Disbursed

$66,513.66 remaining balance of a Promissory Note from 2012

$94,205.16 was the total income generated for 2013

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Investment Strategy and Objectives

• Investments are not restricted by the Trustee Act (Ontario)• Investments are restricted to the terms in the Trust Agreement• Trust capital cannot be distributed, only revenue• Any changes to the investment portfolio require the approval of the Elected

Trustee• Increasing the ranges for equities or common stocks from an asset class

distribution of 0%-20% to 25%-40%

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Investment Performance

OBJECTIVE: To achieve a reasonable level of income, with regard to current market conditions… to achieve long-term preservation of the fund.

• Investments are restricted to the terms in the Trust Agreement• Trust capital cannot be distributed, only revenue• The balance of any income earned per annum and not distributed by January

30 is invested back into capital• Preservation of capital is necessary to mitigate inflationary changes• A substantial portion of funds must be invested in equities

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Asset Allocation Guidelines

Asset Class Min (%) Neutral (%) Max (%) Actual*

Cash 0 5 20 7.65 %

Canadian Bonds 45 55 80 51.06 %

Total Cash & Fixed Income

50 60 100 58.71 %

Equities

Canadian Stocks 8 18 28 18.39 %

U.S Stocks 2 12 22 12.78 %

International Stocks 0 10 20 10.12 %

Total Equities 20 40 50 41.29 %

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*As of August 15, 2014

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Starting Value Withdrawals Trust Growth Ending Value

2009 $1,933,715 - $146,344 $2,080,059

2010 $2,080,059 ($11,510) $112,643 $2,181,192

2011 $2,181,192 ($9,190) $13,285 $2,185,287

2012 $2,185,287 ($102,150) $90,177 $2,173,314

2013 $2,173,314 ($10,158) $162,958 $2,326,114

2014 YTD $2,326,114 ($34,511) $30,919 $2,322,522

Total $1,933,715 ($167,519) $556,326 $2,322,522

Investment Summary

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Investment Returns

Year to date* 2013 2012 2011 2010 2009

6.8% 8.6% 5.3% 2.2% 6.4% 10.0%

1 Year 2 Year 3 Year 4 Year

5 YearSince Jan

2004

7.9% 6.9% 6.0% 5.6% 5.6% 6.6%

Excludes Securex Partnership which was sold in August

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Economic Summary

• Canadian equities has been the strongest asset class in the trust for 2014. It was led by the energy sector.

• Over the last 4 years the U.S equities have been the strongest performer. Some of this is attributed to the U.S. markets being under valued and trying to catch up but recently it has been due to the economic and profits backdrop that have been conducive to continuing gains in equity prices.

• Bonds had better than expected returns in 2014 as bond yields dropped earlier this year and prices rose.

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Economic Outlook

• The driver of growth has shifted from the emerging world (e.g. China) to the U.S. Recovering real estate and capital markets and firming momentum in job creation have restored confidence, bolstering consumption. Led by the U.S., a self sustaining business cycle has gained traction.

• Stock valuations are not yet excessive, the global economy and corporate profits remain supportive and relative valuations (the expected returns for the risk taken) continue to favour stocks over bonds.

• Bonds returns are expected to be modest (below 4%) for a few years.

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Current Holdings as at September 30, 2014

Dollars % Weight

Cash $109,604 4.7%

Canadian Bonds $1,184,360 51.0%

Canadian Companies $458,882 19.8%

U.S Companies $335,040 14.4%

International Companies $234,636 10.1%

Total $2,322,522

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Top Bond Holdings

Issuer Coupon Maturity

Province of Alberta 1.70% Dec 15, 2017

Province of Ontario 4.20% Mar 8, 2018

Province of New Brunswick 3.35% Dec 3, 2021

Province of Ontario 4.40% Mar 8, 2016

National Bank of Canada 4.92% Dec 22, 2019

Bank of Montreal 2.96% Aug 2, 2016

Government of Canada 3.75% Jun 1,2019

Government of Canada 4.00% Jun 1, 2041

Government of Canada 5.00% Jun 1, 2037

Government of Canada 1.00% Aug 1, 2016

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Top Canadian Company Holdings

Issuer Industry

Canadian Imperial Bank of Commerce Bank

National Bank of Canada Bank

Toronto Dominion Bank Bank

Bonterra Energy Corp Oil & Gas

Bank of Montreal Bank

Royal Bank Bank

Bank of Nova Scotia Bank

BCE Inc. Telecommunications

TransCanada Corp Oil & Gas

Laurentian Bank Bank

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Top U.S. Company Holdings

Issuer Industry

Apple Inc. Technology

Exxon Mobil Corp Oil and Gas

Microsoft Corp Technology

Johnson & Johnson Consumer goods

General Electric Company Technology

Berkshire Hathaway Inc. Financial

Wells Fargo & Company Bank

Chevron Corp. Oil and Gas

Procter & Gamble Consumer goods

JP Morgan Chase & Co. Bank

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Top International Company Holdings

Issuer Industry

Nestle Consumer goods

Novartis A.G. Healthcare

Roche Holdings Healthcare

HSBC Holdings Bank

Toyota Motor Corp. Automotive

Royal Dutch Shell Oil & Gas

BP Plc. Oil & Gas

Total S.A. Oil & Gas

Sanofi S.A. Healthcare

Banco Santander Bank

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Trust Compliance

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Compliance

• All investments are compliant with the terms of the Trust Agreement

• Withdrawals and distributions must be compliant with the terms of the Trust Agreement

• Royal Trust works with Council to ensure that all terms of the Trust Agreement are met or are addressed

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QUESTIONS?

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Sangita BhallaRegional Vice President – Winnipeg

Aboriginal Trust ServicesPhone: 204-285-3053

Toll free: 1-855-833-6510E-mail:sangita.bhalla@rbc.com

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Trust Contact

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The Aboriginal Trust Services Team

Winnipeg, Manitoba

Sangita Bhalla, Regional Vice PresidentGary Goodbrandson, Regional Vice President

Calgary, Alberta

Jemison Jackson, Vice President

Julie Tannahill, Regional Vice PresidentGeorge McDonald, Investment CounsellorRick Yu, Investment Associate

Victoria, British Columbia

Gordon Larin, Regional Vice President

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DISCLOSURES

This presentation, together with all information and material distributed or discussed as part of the presentation, is intended to provide general information only. It is not intended, nor should it be construed, as legal, tax , financial, investment, accounting or other advice, and should not be relied upon in that regard. While every effort has been made to ensure the accuracy of the information provided, no guarantees, warranties or representations of any kind are made in this regard. No one should act upon the examples/information presented without a thorough examination of the legal/tax situation with their own professional advisors, based on the latest available information after the facts of their own specific case are considered.

RBC Estate & Trust Services and Royal Trust refers to Royal Trust Corporation of Canada and The Royal Trust Company. Royal Trust Corporation of Canada, The Royal Trust Company and Royal Bank of Canada are separate corporate entities which are affiliated. Royal Trust Corporation of Canada and The Royal Trust Company are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. ® Registered trademarks of Royal Bank of Canada. RBC Wealth Management is a registered trademark of Royal Bank of Canada. © Royal Bank of Canada 2014. All rights reserved.

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