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Important Information — CST Spark RESP

This calculator is provided for illustrative and educational purposes only and does not constitute investment, tax, legal, or financial advice. It is designed to model the CST Spark RESP, a mutual fund-based registered education savings plan.

About CST Spark

CST Spark is an individual RESP offered by C.S.T. Spark Inc. Contributions are invested in target-date education portfolios (mutual funds) managed by BlackRock Asset Management Canada Limited. There are no upfront sales charges, no account maintenance fees, and no unit-based pricing. The only fee is the Management Expense Ratio (MER) built into the fund price.

Assumptions Used in This Projection

• Contributions are made monthly or annually for up to 17 years (204 months).
• Contributions end in the calendar year the child turns 17.
• If the child is already older at enrollment, the contribution period will be shorter.
• Government grants (CESG/QESI) are calculated based on the selected province, subject to annual and lifetime maximums.
• A fixed annual rate of return is assumed, net of fees when using the static fund scenarios (Low Risk 5%, Medium 8%, Growth 10%).
• The default MER of 1.47% is deducted annually from the portfolio balance when the MER toggle is enabled.
• All investment earnings and government grants are assumed to be reinvested.
• Withdrawal is assumed to occur at the end of the contribution period (no additional growth beyond that point).

Plan Maturity Options

At maturity, funds may be withdrawn as:

• Option 1 — EAP (Education Assistance Payment): Contributions are returned to the subscriber. Government grants and investment income are paid to the student as taxable income in the student's hands.
• Option 2 — AIP (Accumulated Income Payment): If the beneficiary does not pursue post-secondary education, investment income may be withdrawn by the subscriber, subject to taxes and potential grant repayment to the government.

MER Impact

The MER impact shown represents the estimated long-term reduction in portfolio value compared to a scenario with no annual fee. This reflects both:

• Direct fees deducted annually from the portfolio balance, and
• The compounding effect of lost growth on those fees over time.

Fund Comparison Feature

The Fund Comparison feature illustrates the mathematical impact of different MER levels over time, assuming the same gross annual rate of return for each fund.

It does not predict or imply that one fund will outperform another. Actual performance will vary due to:

• Asset allocation and investment strategy differences
• Risk profile and fund objectives
• Market conditions and economic cycles
• Portfolio manager decisions

Important Limitations

This calculator does not account for:

• Taxes, inflation, or changes in purchasing power
• Changes in government grant programs or eligibility rules
• Market volatility — actual returns will vary year to year
• Changes in contribution amounts or timing
• Individual financial circumstances, suitability, or KYC requirements

Investment returns are assumed to be constant for modeling purposes only. Actual returns will fluctuate and may be higher or lower than illustrated. The results shown are estimates only and are not guaranteed. For a complete description of the plan's benefits, risks, and fees, please refer to the CST Spark Simplified Prospectus and Fund Facts documents.