1. Quarterly Investment Update Fourth Quarter 2010

2. Market Update: A Quarter in Review December 31, 2010 Data is in Canadian dollars. Market segment (index representation) as follows: Canadian stocks: Large Cap (TSX 60), Small Cap (MSCI/Barra Canadian Small), Growth (MSCI/Barra Canadian Growth), Value (MSCI/Barra Canadian Value); US stocks: Large Cap (S&P 500), Small Cap (Russell 2000), Growth (Russell 3000 Growth), Value (Russell 3000 Value); International stocks: Large Cap (MSCI EAFE [net div]), Small Cap (MSCI EAFE Small (net div)), Growth (MSCI EAFE Growth [net div]), Value (MSCI EAFE Value [net div]), Emerging Markets (MSCI Emerging (net div)); Real Estate: Global REITs (S&P Global REIT [net div]); Fixed Income: Canadian (Canadian 1-month T-bills), Short Term Bonds (DEX Short Term Bond), Canadian Bonds (DEX Universe Bond), Global Bonds-Hedged (Citigroup World Government Bond Index 1-5 Years [hedged to CAD]). Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance does not guarantee future returns. S&P/TSX data provided by S&P/TSX. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor's Index Services Group. Russell data copyright © Russell Investment Group 1995-2010, all rights reserved. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. Citigroup bond indexes copyright 2010 by Citigroup. CANADIAN STOCKS US STOCKSREAL ESTATE AND FIXED INCOME INTERNATIONAL STOCKS Large CapSmall CapGrowthValueLarge CapSmall CapGrowthValueEmerging +8.25%+17.03%+12.06%+7.79%+3.33%+8.35%+4.53%+2.05%+4.03% Large CapSmall CapGrowthValue Global REITs 1-Month T-Bills Short Term Bonds Intermediate Bonds Global Bonds (hedged) +7.34%+12.67%+8.80%+7.50%+3.49%+0.23%-0.25%-0.71%-0.30%

3. Survey of Long-Term Performance December 31, 2010 Annualized (%) Asset ClassIndex1 Year3 Years5 Years10 Years20 Years Since Inception Inception date CANADIAN STOCKS Large Cap TSX 60 13.841.126.496.1210.459.45 Feb 1987 Small Cap MSCI/Barra Canadian Small 38.098.079.9511.8812.0811.03 Jul 1990 Growth MSCI/Barra Canadian Growth 18.89-0.327.015.188.718.16 Jan 1982 Value MSCI/Barra Canadian Value 16.404.726.759.4312.2611.99 Jan 1982 US STOCKS Large Cap S&P500 9.16-2.74-0.89-2.638.3210.60 Feb 1951 Small Cap Russell 2000 20.342.341.222.0910.0111.12 Jan 1979 Growth Russell 3000 Growth 11.60-0.150.65-3.717.459.94 Jan 1979 Value Russell 3000 Value 10.26-3.79-1.71-0.519.4211.68 Jan 1979 INTERNATIONAL STOCKS Large Cap MSCI EAFE (net div.) 2.22-6.90-0.73-0.635.059.25 Jan 1970 Small Cap MSCI EAFE Small (net div.) 15.78-1.60-0.395.08N/A5.17 Jan 1993 Growth MSCI EAFE Growth (net div.) 6.49-5.830.24-1.413.649.06 Jan 1975 Value MSCI EAFE Value (net div.) -2.05-8.04-1.780.036.3612.39 Jan 1975 Emerging Markets MSCI Emerging (net div.) 12.78-0.209.2711.2611.1612.60 Jan 1988 REAL ESTATE Global REITs S&P Global REIT (net div.) 15.82-4.30-2.014.998.797.35 Jul 1989 FIXED INCOME Canadian BillsCanadian 1-Month T-Bills 0.431.112.302.594.027.06 Jun 1973 Canadian Short Term BondsDEX Short Term Bond 3.565.534.935.286.918.80 Jan 1980 Canadian BondsDEX Universe Bond 6.746.195.256.338.339.84 Jan 1980 Global Bonds (hedged)Citigroup World Government Bond Index 1-5 Years 2.333.874.024.256.037.28 Jan 1985 Data is in Canadian dollars. MSCI EAFE Small index return is price only prior to January 1999 data inception. MSCI Emerging index return is gross dividends prior to January 1999 data inception. S&P Global REIT index return is gross dividends prior to January 2001 data inception. S&P/TSX data provided by S&P/TSX. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor's Index Services Group. Russell data copyright © Russell Investment Group 1995-2010, all rights reserved. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. Citigroup bond indexes copyright 2010 by Citigroup. Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results.

4. Weights Number of Countries Number of StocksTotal ValueDecember 31, 2010 Change from Previous Year 01/90-12/10 Average Canada13351.71 Trillion4.85%0.42%3.04% United States12,59014.15 Trillion40.23%0.36%44.43% Developed Markets223,34513.90 Trillion 39.50%-1.99%47.48% Emerging Markets212,7825.43 Trillion15.42%1.21%5.05% Total459,05235.19 Trillion100.00% Value of Stock Markets around the World January 1990-December 2010 Data is in US dollars and values are beginning of month. The proxies for the Canadian and US equity markets are based on the respective country markets from the MSCI All Country World IMI Index. The international developed market proxy is the MSCI All Country World IMI ex USA ex Canada Index. The proxy for emerging markets is the MSCI All Country World IMI Index (Emerging Markets). MSCI data copyright MSCI 2010, all rights reserved. Global market capitalization weights are not static; they change across time. Emerging Markets Maximum 15.45% October 2010 CAN Stock Market Maximum 4.86% November 2010 Intl. Developed Markets Maximum 65.26% January 1990 US Stock Market Minimum 31.55% January 1990 Emerging Markets Minimum 0.76% January 1990 US Stock Market Maximum 54.85% January 2002 Intl. Developed Markets Minimum 38.56% May 2010 CAN Stock Market Minimum 2.21% August 1998

5. Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 6.833.552.969.092.174.504.5924.3021.766.583.14 2.9314.099.45 ? 2.272.742.240.550.563.591.5219.9711.303.982.34 0.9712.788.15 ? 1.991.851.19-0.72-0.370.540.8618.0410.613.861.40 0.0812.594.03 ? 1.701.020.90-1.06-0.46-8.480.2015.729.982.611.26 -2.1410.263.49 ? 1.10-1.25-2.84-1.54-4.71-11.71-2.007.777.070.330.78 -3.947.803.33 ? -4.60-1.83-5.91-2.37-17.06-17.22-7.591.252.710.240.03 -5.513.150.23 ? -4.96-3.42-6.54-2.92-18.22-22.71-10.830.200.980.05-1.08 -7.040.93-0.30 ? -5.18-12.16-8.06-9.64-23.74-26.93-22.830.070.04-0.16-2.57 -9.820.09-0.71 ? The Randomness of Quarterly Returns December 31, 2010 Data is in Canadian dollars. Indexes represented as follows: Canadian stocks (S&P/TSX Composite Index), US stocks (Russell 3000 Index), International Developed Markets (MSCI EAFE Index), Emerging Markets (MSCI Emerging Markets Index), Global REIT (S&P Global REIT Index), Canadian 1-Month T-Bills, Canadian Bonds (DEX Universe Bond), Global Bonds (Citigroup World Government Bond Index Canada 1-5 Years). Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. S&P/TSX data provided by S&P/TSX. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor's Index Services Group. Russell data copyright © Russell Investment Group 1995-2010, all rights reserved. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. Citigroup bond indexes copyright 2010 by Citigroup. Highest Return Lowest Return This table shows from top to bottom the highest returning asset classes each quarter over the last 14 quarters. Each asset class is color coded based on the legend below. The lack of a pattern indicates that picking which asset classes will be the best or worst performers is virtually impossible. Portfolios combining these various investments will avoid extreme returns. Canadian Stocks US Stocks International Developing Markets Emerging Markets Global REITs 1-Month CAN Treasury Bills CAN Bonds Global Bonds

6. Currency December 31, 2010 CHANGE IN FOREIGN EXCHANGE RATES (%) FX/$CAD CurrencyQ4 2010One YearThree Years $ US Dollars 2.92%5.33%-0.89% € Euro 5.73%13.56%8.31% £ Pounds 4.89%10.06%26.68% ¥ Yen 0.54%-7.34%-27.86% Data is in Canadian dollars. The market for the United States, International Developed Markets, and Emerging Markets is defined as: Russell 3000 Index, MSCI EAFE Index, and MSCI Emerging Markets Index, respectively. The S&P data are provided by Standard & Poor's Index Services Group. Russell data copyright © Russell Investment Group 1995-2010, all rights reserved. MSCI data copyright MSCI 2010, all rights reserved. Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. FX Rates courtesy of Federal Reserve of New York. IMPACT OF CURRENCY FLUCTUATIONS Annual Returns in CAD and Local CurrencyThree-Year Annualized Returns in CAD and Local Currency CADLocal Currency

7. MSCI Country Returns in Canadian Dollars and Local Currency December 31, 2010 ONE YEAR RETURNS IN CAD AND LOCAL CURRENCY Return in CAD Return in Local Currency Impact of Currency 1.Thailand 49.42%42.54%6.88% 2.Peru 44.76%48.37%-3.61%.. 13. Canada17.84% –.. 20. United States 11.06%17.18%-6.11%.. 44. Spain -25.23%-15.63%-9.60% 45. Greece -45.72%-38.75%-6.97% FOURTH QUARTER 2010 RETURNS Return in CAD Return in Local Currency Impact of Currency 1.Peru 13.37%17.84% -4.47% 2.Mexico 13.12%14.95% -1.83%. 7. Canada9.95% –. 10. United States 8.16%11.67% -3.51%.... 44.Spain -10.89%-6.38% -4.51% 45.Hungary -12.40%-7.36% -5.04% MSCI data copyright MSCI 2010, all rights reserved. Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results.

8. MSCI Country Returns December 31, 2010 Data in Canadian dollars gross of fees. MSCI data copyright MSCI 2010, all rights reserved. Indexes are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. COUNTRY RANKINGS–TEN-YEAR ANNUALIZED RETURNS Canada United States Percent Return How to edit this page: 1.Copy new data from source 2.Right click on chart and select “edit data” 3.Paste new source data “as values” over old data 4.The Canadian and USA rankings will changes, so you will have to delete the “Canada” and “USA” names from the data names 5.On the powerpoint page, reposition the Canadian flag and name label to its new ranking location 6.Same for USA flag and label 7.Recolor the Canada and USA data points to their new position

9. Bond Returns December 31, 2010 Data is in Canadian dollars. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. Data provided by Citibank. Treasury yield data provided by Bank Of Canada; copyright © 1995-2010, Bank of Canada. Return (%) IndexQ4 2010 One Year Three Years Annualized Canadian 1-Month T-Bills 0.23%0.43%1.11% DEX Short-Term Bond Index -0.25%3.56%5.53% DEX Mid-Term Bond Index -1.06%7.80%7.45% DEX Long-Term Bond Index -1.17%12.52%6.81% DEX Universe Bond Index -0.71%6.74%6.19% Citigroup World Government Bond Index -0.30%2.33%3.87% (1-5 years hedged) CAN Treasury Yield Curve

10. In Canadian dollars. T-Bills is Canadian 1-Month T-Bills, Canadian Bonds is DEX Universe Bond Index, International Stocks is MSCI EAFE Index (net div.), Emerging Markets Stocks is MSCI Emerging Markets Index (gross div.) from 01/1988 to 12/1998 and MSCI Emerging Markets Index (net div.) from 01/1999, US Stocks is S&P 500 Index, Global Real Estate is S&P Global REIT Index (gross div.) from 07/1989 to 12/2000 and S&P Global REIT (net div.) from 01/2001 and Canadian Stocks is S&P/TSX Composite Index. Balanced Portfolio is 10% T-Bills, 30% Canadian Bonds, 20% Canadian Stocks, 15% US Stocks, 15% International Stocks, 5% Emerging Markets Stocks and 5% Global Real Estate. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor’s Index Services Group. S&P/TSX data provided by S&P/TSX. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. - ONE YEAR Growth of Wealth December 31, 2010 $1.16 $1.18 $1.00 $1.09 $1.07 $1.13 $1.09 $1.02 Dec-10

11. In Canadian dollars. T-Bills is Canadian 1-Month T-Bills, Canadian Bonds is DEX Universe Bond Index, International Stocks is MSCI EAFE Index (net div.), Emerging Markets Stocks is MSCI Emerging Markets Index (gross div.) from 01/1988 to 12/1998 and MSCI Emerging Markets Index (net div.) from 01/1999, US Stocks is S&P 500 Index, Global Real Estate is S&P Global REIT Index (gross div.) from 07/1989 to 12/2000 and S&P Global REIT (net div.) from 01/2001 and Canadian Stocks is S&P/TSX Composite Index. Balanced Portfolio is 10% T-Bills, 30% Canadian Bonds, 20% Canadian Stocks, 15% US Stocks, 15% International Stocks, 5% Emerging Markets Stocks and 5% Global Real Estate. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor’s Index Services Group. S&P/TSX data provided by S&P/TSX. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. - THREE YEARS Growth of Wealth December 31, 2010 $0.88 $1.06 $1.03 $1.05 $1.20 $0.99 $0.92 $0.81 Dec-10

12. - $0.96 $1.29 $1.37 $1.56 $1.22 $0.90 $1.12 FIVE YEARS Growth of Wealth December 31, 2010 Dec-10 In Canadian dollars. T-Bills is Canadian 1-Month T-Bills, Canadian Bonds is DEX Universe Bond Index, International Stocks is MSCI EAFE Index (net div.), Emerging Markets Stocks is MSCI Emerging Markets Index (gross div.) from 01/1988 to 12/1998 and MSCI Emerging Markets Index (net div.) from 01/1999, US Stocks is S&P 500 Index, Global Real Estate is S&P Global REIT Index (gross div.) from 07/1989 to 12/2000 and S&P Global REIT (net div.) from 01/2001 and Canadian Stocks is S&P/TSX Composite Index. Balanced Portfolio is 10% T-Bills, 30% Canadian Bonds, 20% Canadian Stocks, 15% US Stocks, 15% International Stocks, 5% Emerging Markets Stocks and 5% Global Real Estate. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor’s Index Services Group. S&P/TSX data provided by S&P/TSX. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results.

13. $1.29 $1.53 $0.77 $1.85 $1.89 $2.91 $1.63 $0.94 TEN YEARS Growth of Wealth December 31, 2010 Dec-10 In Canadian dollars. T-Bills is Canadian 1-Month T-Bills, Canadian Bonds is DEX Universe Bond Index, International Stocks is MSCI EAFE Index (net div.), Emerging Markets Stocks is MSCI Emerging Markets Index (gross div.) from 01/1988 to 12/1998 and MSCI Emerging Markets Index (net div.) from 01/1999, US Stocks is S&P 500 Index, Global Real Estate is S&P Global REIT Index (gross div.) from 07/1989 to 12/2000 and S&P Global REIT (net div.) from 01/2001 and Canadian Stocks is S&P/TSX Composite Index. Balanced Portfolio is 10% T-Bills, 30% Canadian Bonds, 20% Canadian Stocks, 15% US Stocks, 15% International Stocks, 5% Emerging Markets Stocks and 5% Global Real Estate. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor’s Index Services Group. S&P/TSX data provided by S&P/TSX. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results.

14. - $2.68 $5.06 $5.39 $8.29 $6.49 $2.20 $4.95 TWENTY YEARS Growth of Wealth December 31, 2010 In Canadian dollars. T-Bills is Canadian 1-Month T-Bills, Canadian Bonds is DEX Universe Bond Index, International Stocks is MSCI EAFE Index (net div.), Emerging Markets Stocks is MSCI Emerging Markets Index (gross div.) from 01/1988 to 12/1998 and MSCI Emerging Markets Index (net div.) from 01/1999, US Stocks is S&P 500 Index, Global Real Estate is S&P Global REIT Index (gross div.) from 07/1989 to 12/2000 and S&P Global REIT (net div.) from 01/2001 and Canadian Stocks is S&P/TSX Composite Index. Balanced Portfolio is 10% T-Bills, 30% Canadian Bonds, 20% Canadian Stocks, 15% US Stocks, 15% International Stocks, 5% Emerging Markets Stocks and 5% Global Real Estate. Canadian fixed income data provided by PC-Bond, a business unit of TSX Inc.; copyright © TSX Inc., all rights reserved. MSCI data copyright MSCI 2010, all rights reserved. The S&P data are provided by Standard & Poor’s Index Services Group. S&P/TSX data provided by S&P/TSX. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results.

15. Quarterly Topic 2010 Review: Economy & Markets 14

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