Unlocking Our Spark

Annual Report 2018

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Our Vision Our Community

Our HistoryOur Families

Message from Board ChairMessage from President & CEOGovernance – Board of DirectorsFinancial Highlights

Who we are

Where we come from

Who we serve

Table ofContents

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VisionOur

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This past year, the cumulative affect of these strategies and insights resulted in the launch of Canada’s first ever digitally centric RESP company CST Spark and its Bright Plan. This was the first time in our 59-year history the Canadian ScholarshipTrust Foundation welcomed a newsubsidiary to its family alongside CSTConsultants Inc. But our work didn’t stophere.

In 2018, we also leveraged data science to anticipate the needs of CST families ready to send their children to school, resulting in two-thirds of our Education Assistance Payments being performed in self-serve channels. We’ve seen a year-over-year increase in this number and anticipate it growing significantly as we move to a digital future. We’ve also grown our customer analytics capabilities within our sales channels, so we can reach even more families. All of this is just the beginning as we pivot toward a more digitally and customer focused strategy.

As a Foundation, we are making investments in growing our talent to be adaptable and agile to leverage technology, creativity and business acumen to ensure families in Canada get a better start in life.

I would be remiss if I did not recognize the departure of two our Directors from our Board in 2018, Giselle Wilson and Rodney Seyffert who were instrumental in helping the Foundation advance its strategies. I’d also like to welcome two new Directors, Bonnie Patterson and Bruce Philp, both have already demonstrated their passion for making a difference in the lives of Canadian families.

On behalf of the board, I would like to thank Sherry MacDonald and her Management team for this year’s accomplishments and commitment to our mission as an organization. We would also like to acknowledge the hard-working associates at CST for their dedication to helping families achieve their post-secondary dreams.

Dr. David R. Lewis Chair of the Board Canadian Scholarship Trust Foundation

Message fromBoard Chair

Unlocking our Spark

Putting customers first is at the heart of everything we do. As a purpose-driven organization, the Canadian Scholarship Trust Foundation has been in the business of helping Canadian families save for university and college for close to 60 years. It’s a beautiful mission to have and even better when being customer-centric means innovating to help future generations of young people achieve their dreams.

Innovation requires a different approach to business. Which is why Management, with the support of the Board of Directors began the implementation of a multi-year digital transformation strategy fundamental to providing an exceptional customer experience and helping even more families achieve higher learning outcomes.

Innovation challenges us to continuously evolve and transform as a Foundation, to keep pace with emerging technologies so that we can meet the changing expectations of the families we serve. New technologies bring new ways of interacting with our customers, new values and services. A brilliant customer experience is no longer confined within an industry, instead it seamlessly transcends across multiple industries (retail, commerce, finance, etc.,) because it is defined by technology and the people who use it. Which is why we at CST are always leveraging customer insights and data analytics to better understand and predict the needs of our customers so that we can design a more personalized experience for families benefiting from a CST RESP.

“Being customer-centric means innovating to help future generations of young people achieve their dreams.”

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Message fromPresident and CEO

In 2018, CST made a bold move and implemented a new digital business model. This new digital sales channel allows us to explore ways to add new sources of value for the large and growing segment of young millennial parents, their families and community. On June 11th the first ever digital RESP company was born. Launched in the province of Ontario, CST Spark became the Canadian Scholarship Trust Foundation’s second subsidiary company. It combines specialized education savings investment support and advice from our team of professional savings consultants with digital technology. Designed with simplicity and flexibility, Bright Plan offers age-based re-balancing that shifts the investment mix from equities to fixed income assets as a child gets older with seasoned investment leaders actively managing the portfolio. In 2019, we will continue to evolve this new business with an aim to expand the offering into new markets across Canada. Energized by our bold new venture, we began to reflect on our accountability for not only helping children realize their dream of attending university or college but also creating a positive social impact. We have of a legacy of innovation and inspired thinking – for the past five decades we have been focused on our mission: driving changes and innovations in education by developing products like the RESP, advocating for policy changes in the attainment of higher education and the creation of programs such as the Canada Education Savings Grant and Canada Learning Bond. However, the context for our work has evolved with RESPs and grant programs now mainstream. This provided us with the unprecedented opportunity to explore new ways of helping families, a so-called blank slate.

It became clear that as an organization we have the power and the duty to unlock and inspire the voyage of discovery for all youth to pursue their dreams.In 2018, I along with Management, took on this contemplative endeavor with great zeal, unlocking an even greater purpose for the Foundation armed in a simple yet fundamental truth: everyone deserves a better start; a better life; a better future and a better world.A Better Start - The journey toward our North Star had already begun in 2018 with our multi-year strategic reinvention through CST Spark and Bright Plan. Helping families with a better start means helping them save for their child’s education from the time they are born to when they are ready to go school. This past year we also continued to improve the experience for our over 250,000 customers at CST Consultants Inc., investing in critical foundational areas of our business and continuing to take steps to transform and digitize operations. And in 2019 through to 2021 we will be transforming our group RESP offering to add more flexibility so families can continue to meet their financial goals.A Better Life - One of the greatest joys I have is connecting with the families we’ve been able to help and the students across Canada we’ve been able to inspire through our Graduate and Scholarship Awards program. We were also able to honour the Canadians who empower others to have a better life through our partnership with MusiCounts. It was my pleasure to acknowledge one of Canada’s most iconic song writers, Jim Cuddy for his work in inspiring education through music. Our partnership reminds us that not all paths to a better life through education are linear.

A Better Future - To help young people navigate this journey the Foundation continues to make investments in work integrated learning and career planning through our Inspired Minds: Careers 2030 initiative and our Co-Op development program partnerships some of the top-rated universities and colleges in the country.A Better World - The Foundation has made a meaningful contribution to Canada’s education system, in particular, the means with which Canadians are able to access post-secondary studies. Through our advocacy and stakeholder relations work, we have helped establish many of the programs that govern the way students’ access higher learning opportunities. In 2019, we will leverage our strengths in this area to involve a wider range of stakeholder with the aim of working together to gain insights on how we can make an even bigger impact on not only our nation but the world in the years to come.Our new North Star is ambitious but not impossible because it is authentic. It is both within our power and our duty as stewards of the Canadian Scholarship Trust Foundation to go back to our roots and become the dreamers that believe in the promise of something better for all of us.

Sherry MacDonald President and CEO Canadian Scholarship Trust Foundation C.S.T. Consultants Inc.

A bold vision for a better life

“Everyone deserves a better start; a better life; a better future and a better world.”

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GovernanceBoard of Directors

As a not-for-profit organization the Canadian Scholarship Trust Foundation is governed by an independent Board of Directors.

Its mission is “to advocate,

develop, deliver and support

solutions that will enable

every Canadian resident

to have sufficient financial

resources to pursue post-

secondary education.”

Board members are responsible for the stewardship of the Foundation in important areas such as – social mission, ethics, strategy, risk management, and regulatory and com-pliance matters. As well as the governance and processes of the Foundation’s subsidiaries including the plans, funds and investment vehicles it sponsors for the purpose of delivering on its mission.

2018 Board of DirectorsDr. David R. Lewis, PhD, CFA Chair of the Board, Director Assistant Professor, Ryerson University – Ted Rogers School of Management, Consultant and Corporate Director Mississauga, Ontario

Douglas McPhie, FCPA, FCA Director Corporate Director; Retired Partner, Ernst & Young LLP Oakville, Ontario

Colin Litton, FCPA, FCA, ICD .D Director, Chair, Audit and Risk Management Committee Corporate Director; Retired Partner, KPMG Oakville, Ontario

Bonnie PattersonDirector Professor emeritus, Business; Consultant, Higher Education Leadership & GovernanceToronto, Ontario

Sherry MacDonald, CFA Director, President and CEO Canadian Scholarship Trust Foundation, C.S.T. Consultants Inc. and CST SparkToronto, Ontario

Andrew Poprawa, CPA, CA, C.Dir Director, Chair, Governance and Human Resources Committee President and CEO, Deposit Insurance Corporation of Ontario Mississauga, Ontario

Colleen Sidford, ICD.D Director Corporate Director; Retired Vice President, Chief Investment Officer, Ontario Power Generation Inc. Toronto, Ontario

A. Elaine Bourassa, CPA, CADirectorCorporate Director; Retired ManagingDirector, Greystone Managed Investments Inc.Regina, Saskatchewan

Brenda Bartlett, ICD.D Director President and Chief Operating Officer, PWL Capital Inc. Montreal, Quebec

Robert Pitfield Director, Chair, Investment Committee Chairman, TravelEdge Toronto, Ontario

Bruce PhilpDirector President Heuristic Branding Toronto, Ontario

Dr. Amit Chakma, PhD Director President and Vice Chancellor, University of Western Ontario London, Ontario

Read more about our Board of Directors on our website

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FinancialHighlights

1 This sum includes Education Assistance Payments, Grants and Sales Charge Refunds for 2018. 2 Participation rate reflects the total number of EAPs received by qualified students, over a specific period of eligibility as a percentage of

total EAPs available. Years of eligibility 2008-2012 for Group Savings Plan 2001 (CST Advantage Plan).3 Past performance is not indicative of future results.

Assets Under Management

537.8KNumber of CST Plans in 2018

85%Education Assistance Payment

(EAP) Participation Rate2

Beneficiaries collecting EAP

Sales Charge Refund

0 1 2 3 4 5 0 20 40 60 80 100 0 5 10 15 20

2018 - $4 .8

2017- $ 4 .7

2016- $ 4.5

2015 - $4.2

2014- $4.1

2016 - $85.9

2015 - $85.6

2014 - $85.1

2013 - $87.2

2012 - $86.6

2016 - $16.6

2015 - $15.8

2014 - $12.5

2013 - $10.4

2012 - $8.2

(Years) (Years) (Years)

($ billions) ($ millions) ($ millions) ($ millions)

0 50 100 150

2016 - $151.5

2015 - $150.6

2014 - $131.1

2013 - $117.5

2012 - $103.0

(Years)

0 0 20 40 60 80 100 0 5 10 15 20

2016 - $4.5

2015 - $4.2

2014 - $4.1

2013 - $3.9

2012 - $3.8

2018- 45.5

2017- 43.5

2016- 43.9

2015- 42.9

2014- 39.8

2016 - $85.9

2015 - $85.6

2014 - $85.1

2013 - $87.2

2012 - $86.6

2016 - $16.6

2015 - $15.8

2014 - $12.5

2013 - $10.4

2012 - $8.2

(Years) (Years) (Years) (Years)

($ billions) (thousands) ($ millions) ($ millions)

01 02 30 04 05 060 1 2 3 4 5 0 20 40 60 80200 5 10 15 20

2016 - $4.5

2015 - $4.2

2014 - $4.1

2013 - $3.9

2012 - $3.8

2016 - $85.9

2015 - $85.6

2014 - $85.1

2013 - $87.2

2012 - $86.6

2018 - $17.4

2017- $17.3

2016- $16.6

2015 - $15.8

2014 - $12.5

(Years) (Years) (Years)

($ billions) ($ millions) ($ millions) ($ millions)

0 50 100 150

2016 - $151.5

2015 - $150.6

2014 - $131.1

2013 - $117.5

2012 - $103.0

(Years)

Payments to students¹

0 1 0 20 40 60 80 100 0 5 10 15 20

2016 - $4.5

2015 - $4.2

2014 - $4.1

2013 - $3.9

2012 - $3.8

2016 - $85.9

2015 - $85.6

2014 - $85.1

2013 - $87.2

2012 - $86.6

2016 - $16.6

2015 - $15.8

2014 - $12.5

2013 - $10.4

2012 - $8.2

(Years) (Years) (Years)

($ billions) ($ millions) ($ millions) ($ millions)

0 100 150

2018 - $166.0

2017- $151.0

2016 - $151.5

2015- $150.6

2014- $131.1

(Years)

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FamiliesOur

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Our Families and StudentsWho we are

The Canadian Scholarship Trust Foundation has been committed to helping families reach their post-secondary education goals for 58 years.

Our families come from all walks of life and from all around the world in search of one common goal: to provide their children opportunity through a post-secondary education. Whether that means university, college, CEGEP, trade school, online learning or any of the other form of higher learning, we believe every child can pursue their dream.

Today, we work with over 250,000 families all across the country from British Columbia to Prince Edward Island. We focus on supporting the education savings goals of

parents through our Registered Education Savings Plan programs, rewarding hard-working and community minded students through our scholarships, bursaries and awards programs and encouraging children to find the right path to their dreams by discovery and engagement.

This year alone we helped over 45,000 students access some form of post-secondary education distributing $166 million in payments (including Education Assistance Payments, grants and sales charge refunds).

“We need to go learn

from people, hear their

hopes, dreams, needs

and create ways to

leverage multiplicity of

perspectives achieve meaningful change...”

Ruth Lebel-Almaw

Canadian Scholarship Trust Plan beneficiary, and recipient of the Canadian Scholarship Trust Foundation Graduate Awards

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CommunitiesOur

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Our CommunitiesWho we serve

The Canadian Scholarship Trust Foundation has a clear vision, helping all Canadians plan to make post-secondary education possible.

For some families, accessing post-secondary education isn’t so easy.

There are an estimated 1.9 million¹ low-income children in Canada that are eligible for the Canada Learning Bond with millions of dollars in grants available from the federal government to access a post-secondary education.

From poverty to parental education and financial literacy, to cultural and social barriers, the Canadian Scholarship Trust Foundation is focused on working with communities to bring the resources, expertise and knowledge they need to empower all Canadians with the gift of education.

Community Relations

In 2018, the Canadian Scholarship Trust Foundation helped provide $200,000 in funding to support community initiatives.

We support a wide variety of communi-ties and community organizations across the country. From city centres to rural and northern townships through a wide range of financial, human and creative resources that includes present and past partnerships with organization such as MusiCounts, Habitat for Humanity, Career Trek and celebrity ambassadors such as Commander Chris Hadfield and Olympians Christine Sinclair and Jon Montgomery through our own Inspired Minds Learning Project program.

Through some of its programs the Foundation has helped:

• Enhance the technology programsfor 20 schools

• Fund 8 school music programsand a children’s choir

• Create a Canada Learning Bond signup program for Northern and ruralcommunities in Manitoba

• Build 9 housing complexes for low-incomefamilies in the Greater Toronto Area

• Bring science workshops to 109 schools

• Build 5 school playgrounds

• Implement 2 healthy eating programs

• Restock a School library

• Create a toy and mobile library

• Bring virtual field trips to thousandsof students across the country

• Fund 4 camps for children withillness/special needs

• Fund 2 literacy programs

• Launch agricultural and farmingeducation programs at 3 schools

• Kick-start 2 companies that teachchildren to read and create

• Fund the development of 5conservation education programs

• Create a bike repair co-op and trainingprogram for under-privileged youth

“There are an estimated 1.9

million¹ low-income children

in Canada that are eligible

for the Canada Learning

Bond with millions of dollars

in grants available from the

federal government to access

a post-secondary education.”

The Canadian Scholarship Trust Foundation joined forces with MusiCounts to present the second annual MusiCounts Inspired Minds Ambassador Award (MIMAA) at the Juno Awards in Vancouver, British Columbia. Through this Award, the Foundation provided $50,000 in funding to the charity’s Band Aid Program. The winner of the award was legendary musician and education ambassador, Jim Cuddy. In honour of the recipient, the CST Foundation provided three schools in remote areas of Canada $10,000 each in musical instruments for their music education program.

¹Source: Canada Education Savings Program: Annual Statistical Review 2018 (Ottawa: Employment and Social Development Canada, 2018)

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HistoryOur

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Our HistoryWhere we come from

Our legacy is one of inspired thinking in education. Our past is built for the future. The Canadian Scholarship Trust Foundation started with one single vision: to make education accessible for all. Incorporated as a non-profit in 1960, by a small group of educators and business professionals, we began as a grassroots organiza-tion dedicated to helping Canadian families access a post-secondary education. Serving as our first president, Justice Peter Wright helped Joseph Potts and his wife become the first ever Canadian parents to plan ahead and save for the university education of their children through a scholarship plan. “In 1960, I was a young solicitor with five children,” said Honourable Mr. Justice J. Potts of the Supreme Court of Ontario. “I knew that I would have a tremendous financial problem if they all went through university at the same time.” On the 31st of March, 1961, the young family signed the first ever scholarship (education savings plan) agreement in Canada. All five of his children went on to university. Since then millions of children have gone on to university thanks to our efforts. As for Justice Potts, it's an investment they have now extended to their 8 grandchildren.

Advocacy

With a rich history in advocacy and in the advancement of education in Canada the Foundation has actively participated in discussions with the federal government, provincial ministries, various commissions on education and financing education, as well as other bodies. These discussions have led to significant changes to the Income Tax Act for education savings plans, the introduction of the Canada Learning Bond, as well as enhancements to the Canada Ed-ucation Saving Grant (CESG). We have also been successful in encouraging provincial governments to amend several regulations that would require the collapse of an RESP in order to qualify for social assistance.

We believe our role as advocate is an integral part of our history and the history of our country and our responsibility under our mission.

Recent advocacy efforts

The Foundation’s most recent advocacy efforts have also brought about some important policy changes including the establishment of the British Columbia

From left to right: (Back row) Roberta, Richard, Diana, Joe, Arthur (Front row) Joseph Potts, Dawn Potts

Training and Education Savings Grant (BCTESG) and the Saskatchewan Grant for Education Savings. Building from a successful 2016 with the launch of the BCTESG program we ramped up efforts to raise awareness of the new grant with our digital public awareness campaign called BC Bridge the Gap encouraging families in the province to save for their child’s post-secondary education.

The Canadian Scholarship Trust Foundation also participated in a number of Innovation Labs and workshops with our federal government partners at Employment and Social Development Canada looking at new ways and prototypes to encourage uptake of the Canada Learning Bond.

“I have inordinate

respect for the work

of the Foundation, for

the work of the Canadian

Scholarship Trust Foundation. It is

an inspired idea... that

education should always be

available to everyone in

society regardless

of income.” —

Remarks from then Ambassador, Stephen Lewis, Permanent Representative of Canada to the United Nations, Companion of the Order of Canada, during The Canadian Scholarship Trust Foundation’s 25th Anniversary Dinner on April 11, 1986.

Watch Customer Testimonial: Linton Carter

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