Annual General Meeting December 2, 2016 Queen’s Pension Plan Annual General Meeting December 2, 2016

Agenda Members of Queen’s Pension Committee Summary of Pension Plan Membership True vs. Paid Pensions Financial Position of Queen’s Pension Plan – Going Concern Basis Financial Position of Queen’s Pension Plan – Wind-Up/ Solvency Basis Historical Employee and Employer Contributions Pension Plan Asset Reconciliation University Pension Project Update Responsible Investing Update Summary of Plan Assets at August 31, 2016 Returns Compared to Benchmark and BNY Mellon’s Universe Returns Compared to Other Canadian University Pension Plans Manager Presentation: Connor, Clark & Lunn Investment Management Questions

Members of Queen’s Pension Committee Appointed by Members James MacKinnon Bill Cannon Peggy Hauschildt Alison Morgan Lewis Johnson Kelly Sedore Appointed by Board of Trustees David Grace Jim Keohane Todd Mattina Jana Steele Marcus Robertson Ex Officio Daniel Woolf Don Raymond Donna Janiec Dan Bradshaw Jim Leech

Summary of Pension Plan Membership Active Deferred Pensioners and Survivors Total At August 31, 2014 3,715 1,675 2,128 7,518 New entrants Return to active status 646 1 (1)   Terminations Transfers/lump sum (181) (145) (326) Deferred pensions (56) 56 -  Deaths (14) (2) (116) (132) Retirements (170) (68) 238 New Beneficiaries 4 48 52 Other/Status Pending (73) 104 30 At August 31, 2016 3,868 1,623 2,297 7,788

True vs. Paid Pensions (projecting at 6%) 5

True vs. Paid Pensions (projecting at 8%) 6

Financial Position of Queen’s Pension Plan: Going Concern Basis ($000’s) August 31, 2011 August 31, 2014 Assets Market value of assets $1,315,319 $1,765,373 Smoothing adjustment $19,686 ($98,609) Net assets at market value $1,335,005 $1,666,764 Liabilities Market value of: -  DC accounts $593,045 $778,794 -  Past service accounts $24,908 $25,874 -  Voluntary accounts $37,047 $41,532 Present value of accrued benefits: -   Active members $55,646 $66,263 -   Pensioners/survivors $750,770 $873,151 -   Non-Reduction Reserve $56,755 Total liabilities $1,461,416 $1,842,369 Surplus (deficit) ($126,411) ($175,605)

Financial Position of Queen’s Pension Plan: Hypothetical Wind-up ($000’s) August 31, 2011 August 31, 2014 Assets Market value of assets $1,315,319 $1,765,373 Termination expense ($2,000) Net assets at market value $1,313,319 $1,763,373 Liabilities Market value of: -         DC accounts $593,045 $778,794 -         Past service accounts $24,908 $25,874 -         Voluntary accounts $37,047 $41,532 Present value of accrued benefits: -         Active members $112,509 $129,182 -         Pensioners/survivors $878,079 $1,073,366 - Deferred Indexing Reserve $20,436 Total liabilities $1,645,588 $2,069,184 Surplus (deficit) ($332,269) ($305,811)

Historical Employee and Employer Contributions

Pension Plan Asset Reconciliation ($000’s) September 1, 2015 $ 1,784,018 PLUS Members’ DC contributions 23,155 University’s DC contributions 19,445 University’s Minimum Guarantee contributions 5,411 University’s Past Service contributions 21,491 Voluntary contributions 1,223 Past Service contributions 42 Transfers from other plans 1,493 Investment return 154,154 LESS Pensions & Lump-sums paid (103,373) Administration fees (14,573) August 31, 2016 $ 1,892,488 Gross rate of return 8.48% Rate of return net of expenses 7.92%

University Pension Project Update Ministry of Finance has continued to fund the project Six universities at the table, with the ability of others to join Meetings scheduled for December 10/11 to discuss outstanding plan design items

Responsible Investing Update Board committee formed to develop a university-wide policy Investment Committee and Pension Committee have provided feedback on a preliminary draft policy Stakeholders now have an opportunity to comment on the current draft

Summary of Pension Plan Assets (‘000) at October 31, 2016 Canadian Equity Global Equity Fixed Income Real Estate Infra-structure Total Assets Percent of Total Assets Burgundy $165,879 8.7% Guardian $81,313 4.3% Connor, Clark, & Lunn $80,005 4.2% TD Asset Management $3,981 0.2% Letko, Brosseau $54,796 $88,324 $75,899 $219,018 11.5% Manning & Napier $171,154 9.0% Orbis $187,003 9.8% State Street $194,962 10.3% $125,670 6.6% PIMCO $151,640 8.0% $122,582 6.4% Integrated Private Debt $89,075 4.7% Sun Life $115,269 6.1% Real Estate – Oxford $98,788 5.2% Infrastructure - Borealis $93,547 4.9% Cash/FX Hedging $1,916 0.1% $385,974 $641,443 $680,135 $1,902,005 100.0% % of Total Assets 20.3% 33.7% 35.8% 100%

QPP Returns Compared to Benchmark & BNY Mellon’s Universe of Canadian Pension Plans At September 30th, 2016: 3 Months 1 Year 4 Years 10 Years Queen’s 5.0% 11.8% 10.9% 6.3% Benchmark 4.3% 9.7% 9.9% 6.1% BNY 1st Quartile 4.7% 11.7% 11.4% 6.9% BNY Median 4.1% 10.3% 10.4% 6.4% BNY 3rd Quartile 3.4% 9.1% 9.5% 6.0%

QPP Returns Compared to Other Canadian University Pension Plans CAUBO survey results, as at December 31, 2015: 1 Year 2 Years 4 Years 10 Years Queen’s 5.2% 6.8% 10.8% 6.3% All Plans In Survey 1st Quartile 7.1% 9.4% 11.0% 6.5% Median 6.2% 8.4% 10.5% 3rd Quartile 5.8% 7.9% 10.2% 6.1% Plans Reporting N=51 N=48

Thank You