RBS

P. 1 The Pension Indices by TELUS Health, released monthly, condense the journey that pension plans have experienced during the year into a few key statistics. More importantly, they also provide an early indicator of the challenges and opportunities that are yet to come for plan sponsors and administrators to help with the monitoring and management of their pension plans. Highlights Over the month of September, the funded position of a typical pension plan increased on both a solvency basis and an accounting basis. The investment return was -3.8% for the month for a representative pension plan portfolio, driven by negative returns in both the equity and bond markets. The global developed and emerging equity markets index, the MSCI ACWI, returned -4.2% in Canadian dollar terms. The Canadian equity index, the S&P/TSX Composite, finished the month with a return of -3.3%. Short-term Government of Canada bond yields increased by approximately 0.23%, whereas long-term Government of Canada bond yields increased by approximately 0.43% over the month of September. Corporate credit spreads did not change materially during the month of September. Market expectations for long-term inflation (the break-even inflation rate) were approximately 1.75% at the end of September, which represents a 0.08% increase from the end of August. The accounting pension expense index saw a significant decrease in September mainly due to an increase in the accounting discount rates during this period. INDEX (JAN 1, 2023 = 100) 50 60 70 80 90 100 110 120 107.6 96.0 96.3 103.5 76.9 103.3 Plan Asset Index Accounting (Pension Expense) Index Accounting (Balance Sheet) Index Commuted Value Index Annuity Proxy Index Solvency Index September 30, 2023 Pension Indices by TELUS Health.

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