C.S.T. Consultants Inc. (CSTC) announces 2017 investment returns for Clients of its Group Savings Plan 2001 Registered Education Savings Plan

TORONTO, ONTARIO (April 27, 2018) – C.S.T. Consultants Inc. (CSTC) is pleased to report a 7.0% rate of return after fees for Group Saving Plan 2001(“GSP 2001”) for the one-year annualized period ending December 31, 2017. GSP 2001 represents CSTC’s largest Plan offering with approximately $4.1 billion in assets under management. Assets for all Canadian Scholarship Trust Plans sponsored by the Canadian Scholarship Trust Foundation rose to a combined amount of $4.8 billion as of December 31, 2017.

In 2017, we made changes to the GSP 2001 investment portfolio that will allow us to maintain our low risk approach, provide the opportunity for higher returns, while protecting the principal of our clients. Key changes that were made include replacing corporate bonds with U.S. equity ETF’s and optimizing the allocation between principal and income assets.

Previous Asset Mix

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Enhanced Asset Mix

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These recent investment changes in combination with enhancements from prior years helped contribute to 2017 results, provided strong industry-relative returns, and increased GSP 2001’s long-term performance.

Plan Investment Assets and Returns as of December 31, 2017
Group Savings Plan 2001 $4.1B1 1 Year 3 Year 5 Year 10 Year
Gross return 7.7% 4.9% 4.2% 4.2%
Net return 7.0% 4.2% 3.5% 3.5%
Benchmark 7.1% 4.8% 4.3% 4.8%
In comparison to the Benchmark, the Plan’s overweight allocation to U.S. equities in combination with the transition to the current investment asset mix, were the most significant contributors to Plan relative returns over the 2017 calendar year period. Note: The benchmark does not include fees, so relevant comparison should be assessed based on gross returns. The Plan’s fees and expenses were 0.7% for all periods. Past performance is not indicative of future results.

Please refer to the October 31, 2017 Management Report of Fund Performance for more information regarding Plan investment objectives, strategies, and portfolio manager changes.

For more information about the Canadian Scholarship Trust Plans, please visit www.cst.org.

Canadian Scholarship Trust Plans are managed and distributed by C.S.T. Consultants Inc., a wholly-owned subsidiary of The Canadian Scholarship Trust Foundation, a not-for-profit organization that has been helping families save for post-secondary education since 1960.

Media Contact: Edyta McKay, Manager, Corporate Communications Tel: 416-445-7377 ext.303,
[email protected]

Canadian Scholarship Trust Plan is only sold by Prospectus.

  1. Plan asset values includes Grant and Sales Charge Refund allocations.