Queen’s Pension Plan Annual General Meeting December 5, 2014

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 Pension Plan Asset Reconciliation Summary of Plan Assets at August 31, 2014 Returns Compared to Benchmark and BNY Mellon’s Universe Returns Compared to Other Canadian University Pension Plans Manager Presentation: Orbis Investment Advisory (Canada) Questions 2

Members of Queen’s Pension Committee Appointed by Members o James MacKinnon o Bill Cannon o Peggy Hauschildt o Alison Morgan o John Gordon o Kelly Sedore Appointed by Board of Trustees o David Grace o Don Raymond o Peter Copestake o Kathryn Bush o Jill Wagman Ex Officio o Daniel Woolf o Barbara Palk o Caroline Davis o Al Orth o Jim Leech 3

Summary of Pension Plan Membership 4 ActiveDeferred Pensioners and Survivors Total At August 31, 20133,6441,6382,0497,331 New entrants Return to active status Marriage breakdowns 354 8(3) Terminations o Transfers/lump sum(44)(48)(92) o Deferred pensions(134)134 Deaths(5)(3)(64)(72) Retirements o Pension option(98)(29)127 o Lump sum(3)(13)(16) New beneficiaries Other(10)(4)(14) At August 31, 20143,7221,6682,1287,518

5 True vs. Paid Pensions 5

Financial Position of Queen’s Pension Plan: Going Concern Basis ($000’s) 6 August 31, 2011August 31, 2013 (est.) Assets Market value of assets$1,315,319$1,527,573 Smoothing adjustment$19,686($43,815) Net assets at market value$1,335,005$1,483,758 Liabilities Market value of: - DC accounts$593,045$676,481 - Past service accounts$24,908$24,879 - Voluntary accounts$37,047$38,940 Present value of accrued benefits: - Active members$55,646$70,901 - Pensioners/survivors$750,770$817,169 Total liabilities$1,461,416$1,628,370 Surplus (deficit)($126,411)($144,612)

Financial Position of Queen’s Pension Plan: Solvency Basis ($000’s) 7 August 31, 2011August 31, 2013 (est.) Assets Market value of assets$1,315,319$1,527,573 Termination expense($2,000) Net assets at market value$1,313,319$1,525,573 Liabilities Market value of: - DC accounts$593,045$676,481 - Past service accounts$24,908$24,879 - Voluntary accounts$37,047$38,940 Present value of accrued benefits: - Active members$112,509$123,042 - Pensioners/survivors$878,079$954,017 Total liabilities$1,645,588$1,817,359 Surplus (deficit)($332,269)($291,786)

Pension Plan Asset Reconciliation ($000’s) 8 September 1, 2013 $ 1,527,573 PLUS Members’ DC contributions 21,754 University’s DC contributions 18,599 University’s Minimum Guarantee contributions 4,930 University’s Past Service contributions 15,122 Voluntary contributions 1,309 Past Service contributions82 Transfers from other plans 1,262 Investment return 277,106 LESS Pensions paid (80,297) Lump-sums paid (12,690) Administration fees (8,627) August 31, 2014 $ 1,766,123 Gross rate of return18.33% Rate of return net of expenses17.71%

Summary of Pension Plan Assets at October 31, Canadian Equity Global Equity Fixed Income Real Estate Infra- structure Total Assets Percent of Total Assets Burgundy$166, % Guardian$82, % Connor, Clark, & Lunn$84, % TD Asset Management$3, % Letko, Brosseau$56,414$83,692$73,486$213, % Manning & Napier$166, % Orbis$183, % State Street Global Advisors$175, % Beutel Goodman$176, % PIMCO$208, % Integrated Private Debt$101, % Real Estate – Oxford$82, % Infrastructure - Borealis$84, % Total Assets$394,060$608,595$559,444$82,162$84,490$1,728, % % of Total Assets22.6%35.2%32.5%4.8%4.9%100%100.0%

QPP Returns Compared to Benchmark & BNY Mellon’s Universe of Canadian Pension Plans At September 30 th, 2014: 10 3 Months1 Year4 Years10 Years Queen’s0.3%14.3%10.1%7.6% Benchmark1.7%15.4%8.6%6.8% BNY 1 st quartile1.7%16.2%10.5%7.7% BNY Median1.3%15.0%9.6%7.2% BNY 3 rd quartile0.8%13.6%8.8%6.9%

QPP Returns Compared to Other Canadian University Pension Plans CAUBO survey results, as at December 31, 2013: 11 1 year2 years4 years10 years Queen’s19.4%14.9%9.6%7.3% Assets > $500M15.2%12.6%9.2%7.0% Assets $150M-$500M15.1%12.3%8.6%6.9% Assets $30M-$150M16.0%12.3%8.4%6.6% All Equally Weighted15.1%12.2%8.8%6.9% All Dollar Weighted15.1%12.4%8.8%6.3%

Questions? Thank You 12