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									Canadian Scholarship Trust
Family Savings Plan
Audited Financial Statements and
Management Report of Fund Performance
October 31, 2009 and 2008
Canadian Scholarship Trust – Family Savings Plan


Contents

Management Report of Fund Performance                                                                                                1
Management’s Responsibility for Financial Reporting                                                                                  5
Auditors’ Report                                                                                                                     5
Statements of Net Assets Available for Education Assistance Payments                                                                 6
Statements of Investment Operations                                                                                                  7
Statements of Changes in Net Assets Available for Education Assistance Payments                                                      7
Statements of Cash Flows                                                                                                             8
Schedule I – Statement of Investment Portfolio                                                                                       9
Schedule II – Contributors’ Deposits and Accumulated Interest                                                                       10
Notes to the Financial Statements                                                                                                   11
Government Grants (Appendix I to Schedule I)                                                                                        14




CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain portions of the Management Report of Fund Performance, including but not limited to,“Results of Operations” and “Recent
Developments”, may contain forward-looking statements about the Plan, including its strategy, risks, expected performance and
condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as “expects”,“anticipates”,“intends”,“plans”,“believes”,“estimates” and similar forward-looking
expressions or negative versions thereof.
In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Plan action,
is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future
events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Plan and economic factors.
Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date.
Forward-looking statements are not guarantees of future performance, and actual events could differ materially from those expressed
or implied in any forward-looking statements made by the Plan. Any number of important factors could contribute to these
digressions, including, but not limited to, general economic, political and market factors in North America and internationally,
interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in
government regulations, unexpected judicial or regulatory proceedings, and catastrophic events.
It should be stressed that the above-mentioned list of important factors is not exhaustive.You are encouraged to consider these and
other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-
looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management
Report of Fund Performance.
Canadian Scholarship Trust – Family Savings Plan

Management Report of Fund Performance
This annual management report of fund performance contains financial highlights but does
not contain the complete annual financial statements of the Canadian Scholarship Trust –
Family Savings Plan (“Plan”). A copy of the annual financial statements can be
obtained on request, and at no cost, by visiting our website at www.cst.org or SEDAR at
www.sedar.com, or by calling our customer service area at 1-877-333-7377, or by writing
to us at 2225 Sheppard Avenue East, Suite 600,Toronto, Ontario M2J 5C2.
  The Canadian Scholarship Trust Foundation views corporate governance and compliance as
important contributors to overall corporate performance and long-term investment returns
and as such we support the proxy voting guidelines established by our investment managers.
Investment restrictions contained in Canadian Securities Administration policy as well as the
Foundation’s investment policy, result in the Plan primarily investing in federal and provincial
government fixed income and money market securities. As a result, proxy voting is not
applicable at this time.
Investment Objective and Strategy                                              It was just over a year ago that Lehman Brothers’ collapse sent
The Plan invests in a prudent manner, with the objective to protect        shock waves through the global capital markets creating Depression-
your principal and deliver a positive return on your investment.The        like fears, devastating equity prices, and widening corporate bond
Plan invests primarily in fixed income securities issued by the            spreads. Investors’ desire to reduce risk led to a dramatic shift into
Canadian federal or any provincial government, as well as money            “safe haven” investments such as Government of Canada bonds
market securities issued by Canadian chartered banks and federally         during November and December 2008 which put significant
or provincially licensed trust and loan companies.The Plan also            downward pressure on bond yields.The Plan’s performance
invests in variable rate securities, which are hybrid financial debt       benefited from the price increases related to the declining yields
instruments issued by Governments, Canadian Chartered Banks or             experienced on government bonds.
licensed trust and loan companies that have embedded components                In March 2009, investor sentiment began to change from despair
that change the risk/return of the security. Included in this asset        to a sense of possible opportunity as the economy began to show
class are structured notes that are debt instruments, whose returns        signs of improvement. Equity prices surged and credit spreads (the
are based on movements in an equity index or indices rather than           extra yield above government bonds that investors demand for
typical interest payments.                                                 holding riskier securities) narrowed as fears of the worst case
     McLean Budden Limited manages the Plan’s assets and focuses on        scenario subsided.
strategies where value can be added on a sustainable basis while               Since that time financial markets have rebounded impressively
meeting the short to medium-term cash flow requirements of the Plan.       although they remained below their previous peaks.The main
                                                                           drivers of the market rally were the massive support programs
Risk
                                                                           introduced by governments around the world to inject liquidity into
The overall risk of the Plan remains as described in the prospectus.       the financial markets and provide needed capital for banks, thus
There were no material changes to the Plan over the financial year         bringing stability. Among the most extraordinary events of the past
that affected the level of risk.                                           year, was the massive expansion and contraction in credit risk
Results of Operations                                                      premiums.
For 2009, the Plan’s rate of return, gross of fees, was 4.0%, compared         In the Canadian market, yields on credit-sensitive sectors, such as
to an investment policy benchmark of 5.6%.The return on the                provincial and corporate bonds, fell significantly and provided positive
Short and Mid-Term Bonds component of the Plan was 6.6%                    returns as prices increased.The outperformance of these sectors
compared to the benchmark’s return of 7.6%, and the return for the         resulted from increased demand for riskier assets with greater income
Cash and Money Market Securities component was 1.4%, which                 potential than federal government bonds as the financial crisis abated.
outperformed the benchmark return of 1.1%. In addition, the return         Our investment managers seized these market opportunities and
for the Variable Rate Securities component was -5.5%. Although             maintained overweight positions in these securities.
performance of the Variable Rate Securities improved with market               The Plan’s investment policy includes an allocation to Variable
conditions after March 2009, it did not offset the decline                 Rate Securities, in particular Structured Notes.The majority of these
experienced prior to that time.                                            securities are linked to the performance of a broad Canadian equity
     The blended benchmark used for this Plan is 30% DEX 91-Day            index, however, under the agreed terms of the notes, positive returns
Treasury Bill Index and 70% DEX Short-Term All Government                  are capped and the return of principal at maturity is protected from
Bond Index.The DEX Short-Term All Government Bond Index                    any negative performance.The nature of these securities, with built-
measures Canadian investment grade fixed income securities with            in performance caps, limits volatility, mitigating the downward
maturities from 1 to 5 years issued by the Government of Canada            impact on rates of return for these securities for the year.
including Crown Corporations and provincial governments.The                    During the year, all structured note holdings in the plan have
DEX 91-Day Treasury Bill Index is based upon the average daily             matured and the proceeds were re-invested in short-term bonds. As at
yield of 91-Day Treasury Bills. Investors cannot invest in these indices   October 31, 2009, 74.2% of the Plan’s assets were invested Short and
without incurring fees, expenses and commissions, which are not            Mid-Term Bonds and 25.8% in Cash and Money Market Securities.
reflected in the index returns.The Plan’s return after fees was 2.8%.
                                                                                                                       Family Savings Plan        1
Canadian Scholarship Trust – Family Savings Plan

Recent Developments and Other Information                                returning more riskier assets.This means that interest rates will
The world economy is in the midst of recovery following the              climb once central bankers declare victory over the recession and
deepest recession in 80 years. Given the unique challenges in the        raise policy rates.
current recovery which followed the global credit crisis, central             It should be stressed, that in periods of instability and
banks are likely to hold policy interest rates at record lows until      uncertainty, no one is immune from market turbulence.The deeply
there are positive signs that the economy has built self-sustaining      unsettling experience over the past two years has shaped a cautious
momentum and confidence is restored in the financial system.We           appraisal of the unfolding global recovery.We are confident that our
do not expect the central banks to begin hiking interest rates prior     well-defined investment strategy, based on our conservative
to mid-2010 as long as inflation remains within the acceptable           management approach, can weather the storm. Our goal, as always,
policy range.                                                            is to provide safety of principal first and deliver positive long-term
     During the credit crisis, central banks provided significant        returns for our contributors and beneficiaries.
liquidity to their domestic banking systems.With financial
                                                                         Adoption of New Accounting Standards
conditions stabilizing and economic growth resuming, the focus is
                                                                         In June 2009 the Canadian Accounting Standards Board (“AcSB”)
shifting to the “exit strategy” when central banks will begin raising
                                                                         issued amendments to CICA Handbook Section 3862 – Financial
interest rates and removing the monetary stimuli from the economy.
                                                                         Instruments – Disclosures.The amendments require publicly
These strategies will have to be carefully managed by the central
                                                                         accountable enterprises to classify fair value measurements based on
banks in order to avoid the risk of tipping the economy back into
                                                                         a hierarchy that reflects the signficance of the inputs used in making
recession or running the risk of inflation.
                                                                         these measurements (Level 1, Level 2 and Level 3 inputs as defined
     Globally, government bond yields are well off their lows, having
                                                                         in the standard).These amendments will not affect the valuation of
rebounded from overbought and overvalued conditions earlier in
                                                                         assets and liabilities held by the Plan, but will result in enhanced and
this year. In the short term, we expect there to be little motivation
                                                                         increased disclosure requirements.
for government bond markets to broaden their current trading
ranges significantly.                                                    Future Accounting Standards
     Our investment managers are seeing compelling values among          On February 13, 2008, the AcSB confirmed that the use of
solid and fundamentally well-capitalized companies and are investing     International Financial Reporting Standards (“IFRS”) will be
in the corporate bond sector.They expect corporate bonds to be           required in 2011 for all publicly accountable profit-oriented
well bid with credit spreads continuing to narrow, as bond investors     enterprises. IFRS will replace Canadian Generally Accepted
seek higher yields and corporate prospects improve. In addition, the     Accounting Principles. IFRS becomes effective for interim and
managers consider provincial fixed income securities to be attractive    annual financial statements relating to the fiscal year ending
as risk premiums on these instruments have declined with concerns        October 31, 2012 with comparatives.We are taking the following
over liquidity diminishing.                                              steps to transition to IFRS:
     During the year Canso Investment Counsel Ltd. (“Canso”), a          – Identification of areas where changes in disclosure will be
leading bond manager, was retained to manage the fixed income                required under IFRS standards
component of the Canada Education Savings Grant asset pool.              – Identification of operational areas impacted by the adoption of
Canso was hired to provide focus on the management of a specialty            IFRS
corporate bond mandate.                                                  – Identification of major differences between current accounting
     Looking into 2010 and beyond, we expect to see upward                   policies and IFRS standards
pressure on inflation premiums and real rates as the obstacles to a      – Assessment of current reporting systems and their readiness for
self-sustaining recovery fall away and money flows toward higher             IFRS implementation
                                                                         – Implementation of an IFRS transition plan
Financial and Operating Highlights (with comparative figures)
The following table shows key financial data for the Plan and is intended to help you understand the Plan’s financial results for the past five
fiscal years ended October 31.
($ thousands)                                           2009              2008                  2007                 2006                  2005

Statement of Net Assets
    Total Assets                                  $ 130,824         $   115,467          $    99,059           $   89,293           $    78,986
    Net Assets                                       57,716              48,761               42,460               36,382                31,752
    % Change of Net Assets                            18.4%               14.8%                16.7%                14.6%                 19.1%

Statement of Investment Operations
    Net Investment Income                         $    4,965        $     2,821          $     2,115           $     1,778          $     2,106

Statement of Changes in Net Assets
    Education Assistance Payments                  $   (6,717)      $    (5,936)         $    (5,595)          $    (4,778)         $    (4,386)
    Net Government Grants Received Net of Payments       (973)             (876)                (747)               (2,012)                 315

Other
   Total number of agreements                          30,140            26,601               23,467               20,764                18,491
   % Change in the total number of agreements          13.3%             13.4%                 13.0%               12.3%                 15.2%




2         Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan


Management Fees                                                         Summary of Plan Investment Portfolio

Administration Fees                                                     The following diagram illustrates the Plan’s assets and does not
An administration fee of $1,282 thousand comprising Plan                include the allocation of assets from the Government Grants
administration and processing fees and financial reporting expenses     belonging to this Plan.
was paid to the Canadian Scholarship Trust Foundation, the sponsor
                                                                        Asset Mix (as at October 31, 2009)
and administrator of the Plan, in accordance with contributors’
Education Savings Plan Agreements.The administration of the Plan
includes, processing and call centre services related to new
                                                                                                                           Cash and Money Market
agreements, Government Grants, plan modifications, terminations,                                                           Investments 25.8%
maturities and Education Assistance Payments (EAP).The annual
administration fee is calculated as 1% of the total amount of
                                                                                                                           Short and Mid-Term Bonds 74.2%
Principal, Government Grants and income in the contributors’
accounts, which is paid monthly.
    The Foundation has delegated certain administrative and
distribution functions to its wholly owned subsidiary, C.S.T.
Consultants Inc., which is registered as a scholarship plan dealer
                                                                            Family Savings is a self-determined Plan.The following table
under securities legislation of each of the provinces and territories
                                                                        details the long positions currently in the Plan.The Plan is
of Canada in which it operates to sell scholarship plans. C.S.T.
                                                                        prohibited from holding short positions in securities.
Consultants Inc. is the exclusive distributor of the Canadian
Scholarship Trust Plans.
    In exchange for its administrative services, C.S.T. Consultants                                                                                % of Plan
Inc. receives an amount equal to the administration costs incurred                                                                                 Portfolio
plus a percentage of such costs from the Foundation.The                 Issuer                                                Fair Value ($)          Assets
administration services agreement is renewable on an annual basis.
                                                                        Canada Housing Trust           4.60%    15 Sep 2011           13,089            13.3%
Portfolio Management Fees                                               Government of Canada           3.75%     1 Jun 2019            8,263             8.4%
The Plan’s annual investment management fee is 0.13% of the             Province of British Columbia   6.38%    23 Aug 2010            7,257             7.4%
weighted average monthly net assets.                                    Province of Quebec             6.00%     1 Oct 2012            6,469             6.6%
Trustee and Custodian Fees                                              Government of Canada           3.75%     1 Jun 2012            6,464             6.6%
The Plan pays trustee and custodian fees to RBC Dexia Investor          Province of Ontario            4.40%     2 Dec 2011            6,073             6.2%
Services Trust to settle all investment trades and disburse fees,       Government of Canada           6.00%     1 Jun 2011            5,347             5.4%
Education Assistance Payments and other amounts in accordance           Province of Quebec             5.50%     1 Dec 2014            5,296             5.4%
with the terms of the Plan Agreement. For 2009 these fees charged       Province of Ontario            4.75%     2 Jun 2013            4,918             5.0%
to the Plan amounted to $16 thousand.                                   Province of Ontario            5.38%     2 Dec 2012            4,780             4.9%
                                                                        Government of Canada           4.50%     1 Jun 2015            2,200             2.2%
                                                                        Province of British Columbia   4.65%    18 Dec 2018            1,620             1.6%
                                                                        Government of Canada           3.50%     1 Jun 2013              741             0.8%
                                                                        Government of Canada           1.00%     1 Sep 2011              423             0.4%

                                                                        Long positions as a percentage of Plan portfolio assets                         74.2%




                                                                                                                         Family Savings Plan                3
Canadian Scholarship Trust – Family Savings Plan


Past Performance

Our investment philosophy has always been to safeguard our
contributors’ investments while providing stable and consistent
returns.
    Past performance of the Plan is set out in the following chart
and the annual compound returns table and is based on the growth
in assets over the term of the plan to maturity.These returns are
enhanced by the allocation of the assets from the Government
Grants and Scholarship pools. Investment returns have been
calculated using market values and time-weighted cash flows during
the periods.Total expenses incurred by the Plan, including
administration, portfolio management, and custody and trustee fees,
are displayed in each period. Past returns of the Plan do not
necessarily indicate how it will perform in the future.
Year-by-Year Returns
The following bar chart illustrates the Plan’s annual performance in
each of the past ten years to October 31, 2009.The chart illustrates
in percentage terms how much an investment made on the first day
of each financial year would have increased or decreased by the last
day of each financial year:

               Year-by-Year Returns
               (For the years ended October 31)

               16.0                13.1*
               14.0
               12.0
                          8.9*
               10.0
    % Return




                8.0
                                 14.2
                6.0                                          4.1*                   3.6*
                                                                          2.9*              3.2*    3.2*    2.8*
                         9.8                         2.8*
                4.0
                                            -1.3*           5.1                    4.8     4.4     4.4
                2.0                                 3.8                   4.1                              4.0
                                            -0.3
                0.0
                         -0.9     -1.1     -1.0     -1.0    -1.0      -1.2         -1.2    -1.2    -1.2    -1.2
               (2.0)
                        2000     2001      2002 2003 2004 2005 2006 2007                           2008    2009
                                              Gross Returns Expenses * Net Returns




Annual Compound Returns
The following table illustrates the Plan’s annual compounded returns
for the periods shown ended on October 31, 2009:
                                                                                       Period
                                                             1 Year              3 Years    5 Years        10 Years

Gross Plan Return                                                   4.0              4.3           4.3             5.4
Benchmark: 30% DEX 91 Day T-Bill
   Index/70% DEX Short-Term
   All Government Bond Index                                        5.6              5.0           4.4             5.1
Net Plan Return                                                     2.8              3.1           3.1             4.3




4                      Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Management’s Responsibility for Financial Reporting
The accompanying financial statements of Canadian Scholarship Trust – Family Savings Plan (the “Plan”) are prepared by management and
are approved by the Board of Directors of Canadian Scholarship Trust Foundation. Management is responsible for the information and
representations contained in these financial statements.The Board of Directors is responsible for reviewing and approving the financial
statements and overseeing management’s performance of its financial reporting responsibilities.
     Canadian Scholarship Trust Foundation, through C.S.T. Consultants Inc., a wholly-owned subsidiary which administers the Plan,
maintains appropriate processes to ensure that relevant and reliable financial information is produced.The financial statements have been
prepared in accordance with Canadian generally accepted accounting principles and include certain amounts that are based on estimates and
judgments.The significant accounting policies, which management believes are appropriate for the Plan, are described in Note 2 to the
financial statements.
     Deloitte & Touche LLP are the external auditors of the Plan.They have audited the financial statements in accordance with Canadian
generally accepted auditing standards to enable them to express to the Board of Directors and Members of Canadian Scholarship Trust
Foundation their opinion on the financial statements.Their report is set out below.




Randall B. Rutherford                                                       Sherry J. MacDonald, CA
President and Chief Executive Officer                                       Vice President, Risk Management
                                                                            and Chief Financial Officer

Toronto, Ontario
December 21, 2009




Auditors’ Report
To the Board of Directors and Members of Canadian Scholarship Trust Foundation
    We have audited the statements of net assets available for education assistance payments of Canadian Scholarship Trust – Family Savings
Plan as at October 31, 2009 and 2008 and the statements of investment operations, changes in net assets available for education assistance
payments and cash flows for the years then ended.These financial statements are the responsibility of the management of the Canadian
Scholarship Trust Foundation. Our responsibility is to express an opinion on these financial statements based on our audits.
    We conducted our audits in accordance with Canadian generally accepted auditing standards.Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
    In our opinion, these financial statements present fairly, in all material respects, the net assets available for education assistance payments
as at October 31, 2009 and 2008, and the statements of investment operations, changes in net assets available for education assistance
payments and cash flows for the years then ended in accordance with Canadian generally accepted accounting principles.




Chartered Accountants
Licensed Public Accountants


Toronto, Ontario
December 21, 2009




                                                                                                                        Family Savings Plan           5
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Statements of Net Assets Available for Education
Assistance Payments
As at October 31, 2009 and 2008 (in thousands of dollars)
                                                                                                                    2009          2008

Assets
   Investments, at fair value (Note 4 and Schedule I)                                                         $   103,342   $   89,068
   Cash and cash equivalents                                                                                        6,470        2,840
   Short-term investments                                                                                          19,276       21,726
   Accrued interest and other receivables                                                                           1,698        1,083
   Receivables for securities sold                                                                                     19          728
   Government grants receivable                                                                                        19           22

                                                                                                                  130,824       115,467

Liabilities
    Accounts payable, accrued liabilities and unclaimed contributors’ funds                                         1,110          977
    Payables for securities purchased                                                                                 215        2,233
    Contributors’ deposits (Schedule II)                                                                           71,783       63,496

                                                                                                                   73,108       66,706

Net Assets Available for Education Assistance Payments                                                             57,716        48,761


Represented by:
Non-Discretionary Funds
   Accumulated interest held for future education assistance payments (Schedule II)                                32,291       28,294
   Government grants                                                                                               18,610       14,304
   Interest on government grants                                                                                    5,813        4,050

Unrealized Gains                                                                                                    1,002         2,113

                                                                                                              $    57,716   $    48,761


Approved on behalf of the Board




Blair A. Corkum                                                                       Randall B. Rutherford
Director                                                                              Director




The accompanying notes are an integral part of these financial statements.

6              Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Statements of Investment Operations
For the years ended October 31, 2009 and 2008 (in thousands of dollars)
                                                                                  2009                  2008

Income
    Interest income                                                          $    4,116         $       4,144
    Realized Gains (Losses)                                                       2,307                   (88)

                                                                                  6,423                 4,056

Expenses
   Plan administration and processing fees (Note 3)                                782                   704
   Financial reporting (Note 3)                                                    500                   403
   Portfolio management fees                                                       160                   116
   Custodian fees                                                                   13                    10
   Trustee fees                                                                      3                     2

                                                                                  1,458                 1,235

Net Investment Income                                                             4,965                 2,821

Decrease in Unrealized Gains                                                     (1,111)                (545)

Increase in Net Assets from Investment Operations                            $    3,854         $       2,276




Statements of Changes in Net Assets Available for
Education Assistance Payments
For the years ended October 31, 2009 and 2008 (in thousands of dollars)
                                                                                  2009                  2008

Net Assets Available for Education Assistance Payments, Beginning of Year    $   48,761         $      42,460

Increase in Net Assets from Investment Operations                                 3,854                 2,276

Transfers from internal and external plans                                       12,823                10,953

                                                                                 16,677                13,229

Receipts
   Government grants received (net of repayments)                                  432                   293

Disbursements
Payments to Beneficiaries
    Education assistance payments                                                (6,717)               (5,936)
    Government grants                                                            (1,405)               (1,169)
    Return of interest                                                              (32)                 (116)

                                                                                 (8,154)               (7,221)

Receipts less Disbursements                                                      (7,722)               (6,928)

Increase in Net Assets Available for Education Assistance Payments                8,955                 6,301

Net Assets Availabe for Education Assistance Payments, End of Year           $   57,716         $      48,761




The accompanying notes are an integral part of these financial statements.

                                                                                 Family Savings Plan       7
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Statements of Cash Flows
For the years ended October 31, 2009 and 2008 (in thousands of dollars)
                                                                                                2009           2008

Operating Activities
Increase in Net Assets from Investment Operations                                         $    3,854     $     2,276
Items not affecting cash
    Realized (Gains) Losses on sale of investments                                             (2,307)           88
    Decrease in Unrealized Gains                                                                1,111           545
Changes in other operating activities
    (Increase) decrease in Accrued interest and other receivables                                (615)         2,029
    Decrease in Government grants receivable                                                        3             18
    Increase in Accounts payable, accrued liabilities and unclaimed contributors’ funds           133            148
    Net purchases of investments                                                              (10,628)       (25,104)
    Decrease (increase) in Receivables for securities sold                                        709           (728)
    (Decrease) increase in Payables for securities purchased                                   (2,018)         2,094

Cash flow from Operating Activities                                                            (9,758)       (18,634)

Financing Activities
    Transfers from internal and external plans                                                12,823         10,953
    Government grants received                                                                   432            293
    Increase in Contributors’ deposits (Schedule II)                                            8,287          7,865
     Payments to beneficiaries                                                                 (8,154)        (7,221)

Cash flow from Financing Activities                                                           13,388         11,890

Net increase (decrease) in Cash and cash equivalents                                           3,630          (6,744)

Cash and cash equivalents, Beginning of Year                                                   2,840          9,584

Cash and cash equivalents, End of Year                                                    $    6,470     $    2,840




The accompanying notes are an integral part of these financial statements.

8              Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Schedule I – Statement of Investment Portfolio
As at October 31, 2009 (in thousands of dollars)
                                                                        Fair    Average
Security                            Par Value ($)                  Value ($)    Cost ($)

Bonds
Federal – 37.1%
Government of Canada
6.00%      1 Jun 2011                          4,960                    5,347     5,398
1.00       1 Sep 2011                            425                      423       422
3.75       1 Jun 2012                          6,145                    6,464     6,432
3.50       1 Jun 2013                            710                      741       739
4.50       1 Jun 2015                          2,020                    2,200     2,204
3.75       1 Jun 2019                          8,050                    8,263     8,331

Canada Housing Trust
4.60     15 Sep 2011                         12,350                    13,089    12,679

                                                                       36,527    36,205

Provincial – 37.1%
Province of British Columbia
6.38      23 Aug 2010                          6,935                    7,257     7,377
4.65       18 Dec 2018                         1,540                    1,620     1,586

Province of Ontario
4.40        2 Dec 2011                         5,740                    6,073     6,040
5.38        2 Dec 2012                         4,370                    4,780     4,669
4.75        2 Jun 2013                         4,570                    4,918     4,911

Province of Quebec
6.00        1 Oct 2012                         5,840                    6,469     6,252
5.50        1 Dec 2014                         4,755                    5,296     5,147

                                                                       36,413    35,982

Total Fixed Income – 74.2%                                            72,940     72,187

Plan Cash and Short-term Investments – 25.8%                           25,423    25,423

Plan Portfolio Assets – 100.0%                                        98,363     97,610

Investments Allocation (Note 4)
Government Grants (Appendix I)                                         30,402    30,153
Cash and Short-term investments (Appendix I)                              323       323

Total Investment Fund                                               129,088     128,086

Represented by:
Investments, at fair value                                           103,342
Cash and cash equivalents                                              6,470
Short-term Investments                                                19,276

                                                                    129,088




The accompanying notes are an integral part of these financial statements.

                                                                                           Family Savings Plan   9
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Schedule II – Contributors’ Deposits
and Accumulated Interest
As at October 31, 2009 and 2008 (in thousands of dollars)
The following is a summary of Family Savings Plan agreements.

Opening                                   Inflow                                 Outflow                  Closing                  Contributors’       Accumulated
Agreements                           Agreements                              Agreements               Agreements                       Deposits            Interest

26,601                                        7,666                                4,127                  30,140               $         71,783    $        32,291




The changes in Contributors’ deposits are as follows:
                                                                                             2009                     2008

Payments from contributors                                                            $      4,887           $        4,967
Inter-Plan principal transfers                                                              22,307                   18,145
Enrolment fees collected                                                                       (40)                     (24)
Return of principal                                                                        (18,867)                 (15,223)

Net increase in Contributors’ deposits                                                      8,287                     7,865

Balance, Beginning of Year                                                                 63,496                   55,631

Balance, End of Year                                                                  $     71,783           $      63,496




The accompanying notes are an integral part of these financial statements.

10             Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan


Notes to the Financial Statements
October 31, 2009 and 2008 (in thousands of dollars)

Note 1. Nature of Operations                                             Note 2. Significant Accounting Policies
The Canadian Scholarship Trust Family Savings Plan (“Family              (a) Generally accepted accounting principles
Savings plan” or the “Plan”) is a self-determined Education Savings          These financial statements have been prepared in accordance
Plan, established on March 1, 1997.The objective of the Family               with Canadian generally accepted accounting principles
Savings Plan is to assist parents and others to save for the                 (“Canadian GAAP”).
post-secondary education of children.
                                                                         (b) Adoption of new accounting standards
    Deposits are made by a contributor to an account maintained by
the depository trustee on behalf of a beneficiary.The contributor            i. Amendments to Canadian Institute of Chartered Accountants
authorizes deductions of enrolment fees from deposits and                       (“CICA”) Handbook Section 3862
depository charges from their principal deposit balance.The                     In June 2009, the Canadian Accounting Standard Board
principal accumulated over the term of the education savings plan               (“AcSB”) approved amendments to CICA Handbook
agreement is returned in whole or in part at any time at the request            Section 3862 “Financial Instruments – Disclosures”.The
of the contributor. A beneficiary is deemed to be a qualified student           amendments require publicly accountable enterprises to
upon receipt by the Canadian Scholarship Trust Foundation (the                  classify fair value measurements based on a three-level fair
“Foundation”) of evidence of enrolment in a qualifying educational              value hierarchy. “Level 1” financial instruments are valued
program at an eligible institution. Education assistance payments               using quoted prices (unadjusted) in active markets for
paid to qualified students from the Family Savings Plan are                     identical assets or liabilities; “Level 2” financial instruments
determined by the contributor and are paid from the income                      are valued using observable inputs other than quoted prices
earned on the contributor’s principal.                                          included in Level 1. “Level 3” financial instruments are
    Effective January 1, 2005, the Federal Government enhanced the              valued using unobservable inputs for the asset or liability.The
Canada Education Savings Grant Program (“CESG”) whereby                         breakdown of the Plan’s Total Investment Fund into the
Registered Education Savings Plans (“RESPs”) receive grant                      three-level hierarchy is provided in Note 6. Adoption of the
amounts dependent on family income. Any child born on or after                  amendments did not impact the financial results of the Plan.
January 1, 2004 and who also qualifies for the National Child                ii. EIC-173
Benefit Supplement may be eligible for the Canada Learning Bond                 In January 2009, the CICA’s Emerging Issues Committee
(“CLB”). Any child born in the province of Alberta on or after                  issued Abstract No.173, Credit Risk and the Fair Value of
January 1, 2005 may be eligible for the initial Alberta Centennial              Financial Assets and Financial Liabilities (“EIC-173”).
Education Savings Grant (“ACES”). Subsequent grants may be paid                 EIC-173 requires that an entity’s own credit risk and the risk
to all children attending school in Alberta at certain eligible ages.           of the counterparty should be taken into account in
    On February 21, 2007, the Québec government introduced the                  determining the fair value of financial assets and financial
Québec Education Savings Incentive (“QESI”) for beneficiaries                   liabilities, including derivative instruments. Management has
who are under eighteen years of age and reside in Québec on                     reviewed its policies concerning valuation of assets and
December 31 of each year.The amount of QESI to be received will                 liabilities and believes that the fair values ascribed to the
depend on annual family income.                                                 financial assets and financial liabilities in the Plan’s financial
    The Family Savings Plan receives the CESG, CLB, ACES and                    statements incorporate appropriate levels of credit risk.
QESI (collectively, “Government Grants”) which are paid directly
                                                                         (c) Future accounting standards
into a beneficiary’s RESP and invests these funds in accordance with
                                                                             In February 2008 the Canadian AcSB confirmed that the use of
the Plan’s investment policies.The Government Grants along with
                                                                             International Financial Reporting Standards (“IFRS”) will be
investment income earned thereon are paid to qualified students.
                                                                             required for publicly accountable enterprises. IFRS will replace
    Contributor education savings plan contracts (“agreements”) are
                                                                             Canadian GAAP and becomes effective for the Plan’s interim
registered, if all required information is provided, with appropriate
                                                                             and annual financial statements relating to fiscal year ending
government authorities and, once registered, are subject to the rules
                                                                             October 31, 2012. Management is in the process of developing
for RESPs under the Income Tax Act (Canada).The current tax
                                                                             a transition plan, which will include identifying differences
legislation provides that income credited on contributors’ deposits is
                                                                             between the Plan’s current accounting policies and those it
not taxable income of the contributor.The deposits are not
                                                                             expects to apply under IFRS, as well as any accounting policy
deductible for income tax purposes and are not taxable when
                                                                             and implementation decisions and their resulting impact, if any,
returned to the contributor. Payments made to a qualified student
                                                                             on the financial statements of the Plan.
will constitute taxable income of that student in the year that the
payments are made.                                                       (d) Investment valuation
    The Family Savings Plan is administered and distributed through          All bonds are carried at fair value, using bid prices at year end. Fair
the Foundation and its wholly-owned subsidiary, C.S.T. Consultants           value represents the amount at which a security could be
Inc. (“C.S.T.C.”).The Foundation was created to encourage and                exchanged in an arm’s length transaction and is best evidenced by
promote post-secondary education by making education savings                 a quoted bid price, if one exists. If quoted market prices are not
plans available to Canadian families.                                        available, the fair values presented are estimates derived using
                                                                             present value or other valuation techniques. Such techniques


                                                                                                                       Family Savings Plan       11
Canadian Scholarship Trust – Family Savings Plan


Notes to the Financial Statements (continued)
October 31, 2009 and 2008 (in thousands of dollars)

Note 2. Significant Accounting Policies                                      fees and Financial reporting expenses) are paid to the Foundation.
                                                                             Administration fees are annual fees of 1% of the total amount of
        (continued)                                                          principal, Government Grants and income earned thereon and are
                                                                             paid monthly. Enrolment fees are paid to C.S.T.C.
(d) Investment valuation (continued)
     include assumptions related to the assessment and quantification of     Note 4. Investment Holdings
     market, credit, liquidity and currency risks referred to in Note 5.
         Variable rate securities are hybrid financial debt instruments      The investment holdings are disclosed in Schedule I – Statement of
     issued by governments, Canadian chartered banks and licensed            Investment Portfolio – and the related Appendix I to the schedule,
     trust and loan companies that have embedded components that             which is explained below.
     change the risk/return profile of the security. Included in this             The Government Grants received from Human Resources and
     class are structured notes that are debt instruments whose returns      Skills Development Canada are collectively invested together with
     are based on indices or underlying assets rather than typical           other C.S.T.C. administered plans.The principal and income
     interest payments.Variable rate securities are carried at fair values   received are separately tracked for each contributor’s agreement.The
     using external pricing models to value their components.                portfolio holdings are allocated across all plans based on the
         Short-term notes are carried at fair value.                         proportion of principal and income attributable to agreements
(e) Investment transactions and income recognition                           within each plan.The Government Grant allocation across the plans
     Investment transactions are accounted for on a trade date basis.        is provided in Appendix I to Schedule I.
     Interest income on investments is recognized using the effective
     interest method. Realized gains (losses) on the sale of                 Note 5. Risks Associated with Financial
     investments and change in unrealized gains (losses) on                          Instruments
     investments are calculated with reference to the average cost of
     the related investments and are recognized in the period that           In the normal course of business the Plan may be exposed to a
     such gains (losses) occur.                                              variety of risks arising from financial instruments.The Plan’s
(f) Contributors’ deposits and Enrolment fees                                exposures to such risks are concentrated in its investment holdings
     Contributors’ deposits reflect amounts received from                    and are related to market risk (which includes interest rate risk and
     contributors and do not include future amounts receivable on            other price risk), credit risk, liquidity risk and currency risk.
     outstanding agreements. An enrolment fee is required as part of             The Plan’s risk management process includes monitoring
     the initial contribution under each educational savings plan            compliance with the Plan’s investment policy.The Plan manages the
     agreement. Enrolment fees collected during the reporting                effects of these financial risks to the Plan portfolio performance by
     period are paid to C.S.T.C.                                             retaining and overseeing professional external investment managers.
                                                                             The investment managers regularly monitor the Plan’s positions,
(g) Income taxes
                                                                             market events and manage the investment portfolio within the
     The Family Savings Plan is exempt from income taxes under
                                                                             constraints of the investment policy.
     Section 146.1 of the Income Tax Act (Canada).
(h) Cash and cash equivalents                                                (a) Market risk
     Cash and cash equivalents include cash and short-term                       i. Interest rate risk
     investments with a purchase date to maturity of 90 days or less.                Interest rate risk is the risk of a decrease in the Plan’s yield
                                                                                     on interest-bearing inverse relationship between changes in
(i) Use of estimates
                                                                                     interest rates and changes in the fair value of bonds.This risk
     In preparing the financial statements, management is required to
                                                                                     is actively managed using duration, yield curve analysis,
     use estimates and assumptions that affect the reported amounts
                                                                                     sector and credit selection.There is reduced risk to interest
     of assets and liabilities and disclosures of contingent assets and
                                                                                     rate changes for cash and cash equivalents due to their short
     liabilities at the date of the financial statements and the reported
                                                                                     term nature.
     amounts of revenues and expenses during the reporting period.
                                                                                          As at October 31, 2009, the Plan’s holdings of debt
     Actual results could differ from the current estimates. Significant
                                                                                     instruments by maturity is as follows:
     estimates included in these financial statements relate to
     valuation of certain investments.                                               Debt Instruments by Maturity Date              % of Total Investment Fund
                                                                                                                                              2009       2008
Note 3. Related Party Transactions                                                   Less than 1 year (including short-term investments)       27%        45%
                                                                                     1-3 years                                                 35%        23%
Distribution and Administration of the Family Savings Plan                           3-5 years                                                 12%        21%
The Foundation has appointed its wholly-owned subsidiary,                            Greater than 5 years                                      26%        11%
C.S.T.C., to administer and distribute the Family Savings Plan.This                  Total debt instruments                                   100%      100%
distribution agreement is renewable annually on November 1st.
Administration fees (comprising Plan administration and processing                       As at October 31, 2009, if prevailing interest rates had
                                                                                     increased or decreased by 1%, the Total Investment Fund
12        Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan


Notes to the Financial Statements (continued)
October 31, 2009 and 2008 (in thousands of dollars)

Note 5. Risks Associated with Financial                                          (b) Liquidity risk
                                                                                     Liquidity risk is the risk that the Plan may not be able to meet
        Instruments (continued)                                                      its obligations on time.The Plan’s exposure to liquidity risk is
                                                                                     concentrated in principal repayments to subscribers and
(a) Market risk (continued)                                                          payments of Education Assistance Payments.The Plan primarily
       amount of $129,088 (2008 – $113,634) as per the Statement                     invests in securities that are traded in the active markets and can
       of Investment Portfolio would have decreased or increased                     be readily disposed.The Plan retains sufficient cash and cash
       by approximately $4,031 (2008 – $2,715).This 1% change                        equivalents positions to meet liquidity requirements by utilizing
       assumes a parallel shift in the yield curve with all other                    cash forecasting models incorporating aging of Accumulated
       variables held constant. In practice, the actual trading results              interest and Contributors’ deposits.
       may differ materially.
                                                                                 (c) Currency risk
    ii. Other price risk
                                                                                     Currency risk is the risk that the value of a financial instrument
       Other price risk is the risk that the value of a financial
                                                                                     will fluctuate due to changes in foreign exchange rates.The
       instrument will fluctuate as a result of changes in market
                                                                                     Plan is not exposed to currency risk as it only holds Canadian
       prices, other than those arising from interest rate risk. Factors
                                                                                     securities.
       specific to an individual investment, its issuer or all factors
       affecting all instruments traded in a market or market segment
       affect other price risk.The asset class that is most impacted by
                                                                                 Note 6. Fair Value of Financial Instruments
       other price risk is variable rate securities which represent 0%
                                                                                 Fair value represents the amount at which a financial instrument
       (2008 – 11%) of the Total Investment Fund amount as at
                                                                                 could be exchanged in an arm’s length transaction between willing
       October 31, 2009.The risk is managed by security selection
                                                                                 parties under no compulsion to act and is best evidenced by a
       and active management by external managers within approved
                                                                                 quoted market price, if one exists.
       investment policies and manager mandates.
                                                                                      Investments and Cash equivalents are carried at fair value as set
            As at October 31, 2009, if underlying indices prices had
                                                                                 out in Note 2.The carrying values of other financial instruments
       increased or decreased by 1%, with all other variables held
                                                                                 such as Accrued interest and other receivables, Receivables for
       constant, the Total Investment Fund amount as per the
                                                                                 securities sold, Government grants receivable, Accounts payable,
       Statement of Investment Portfolio would have decreased or
                                                                                 accrued liabilities and unclaimed contributors’ funds, Payables for
       increased by approximately $0 (2008 – $68). In practice, the
                                                                                 securities purchased and Contributors’ deposits approximate their
       actual trading results may differ materially.
                                                                                 fair values as these financial instruments are short term in nature.
(b) Credit risk                                                                       The following table presents the Plan’s financial instruments
    Credit risk refers to the ability of the issuer of debt securities to        measured at fair value classified by the fair value hierarchy set out in
    make interest payments and repay principal.The Plan’s portfolio              CICA Section 3862 as described in Note 2(b).
    comprises bonds issued or guaranteed by federal or provincial
                                                                                              Assets Measured at Fair Value as of October 31, 2009
    governments along with corporate debt instruments with a
    minimum approved credit rating as set by Canadian Securities                                                  Level 1    Level 2     Level 3           Total
    Administrators, currently A-low. Family Savings Plan has a                   Cash and Cash Equivalents   $     6,470 $       – $           – $        6,470
    concentration of investments in government and government                    Short-term Investments                –    19,276             –         19,276
    guaranteed bonds, which are considered to be high credit                     Fixed Income Securities               –   102,040             –        102,040
    quality investments thereby moderating credit risk.                          Variable Rate Securities              –         –         1,302          1,302
       As of October 31, the Plan’s credit risk exposure is listed below.        Total Investment Fund       $     6,470 $ 121,316 $      1,302 $       129,088
                                    2009                      2008
                                                                                     The Plan’s financial instruments classified as Level 3 represent
                             % of Total               % of Total
                            Investment      Amount Investment        Amount
                                                                                 the Plan’s investment in Equity Linked Notes, which are principal
    Credit rating                 Fund (in thousands)      Fund (in thousands)   protected by a major Canadian Bank (DBRS rating “AA”). Equity
    AAA/AAH/AAL                   62% $     79,424          40% $      45,621    linked notes are hybrid securities comprised of a bond and an
    AA/AH/AL                      16%       20,677          18%        20,749
                                                                                 option.The price of the variable rate securities is derived from the
                                                                                 information on similar publicly traded bonds and options using
    A                              2%        2,809          20%        22,536
                                                                                 standard pricing methodology. No alternative pricing methodology
    BBB                            0%            0           0%           159
                                                                                 is deemed possible.
    R-1                           20%       25,681          21%        23,165
    Short-term Unrated             0%          497           1%         1,404    Level 3 – Variable Rate Securities
    Total Investment Fund        100% $ 129,088            100% $     113,634    Opening Balance                                                   $    13,010
                                                                                 Net Sales                                                             (15,752)
       The Dominion Bond Rating Service was the primary                          Increase in Unrealized Gains/Losses                                     4,044
    source for obtaining credit ratings. Secondary sources used                  Closing Balance                                                   $     1,302
    include Standard & Poor’s and Moody’s.


                                                                                                                                 Family Savings Plan         13
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Government Grants
(Appendix I to Schedule I)
Statement of Investment Portfolio
As at October 31, 2009 (in thousands of dollars)
                                                                         Fair      Average                                                         Fair   Average
Security                            Par Value ($)                  Value ($)       Cost ($)   Security                    Par Value ($)      Value ($)    Cost ($)

Bonds                                                                                         Bonds (continued)
Federal – 39.0%                                                                               Municipal and Provincial – 30.4% (continued)
Government of Canada                                                                          Province of Alberta
4.25%      1 Dec 2009                           730                       732          749    4.00%       1 Dec 2019            1,516            1,510      1,504
3.75       1 Jun 2010                         5,065                     5,165        5,247
                                                                                              Province of British Columbia
2.75      11 Dec 2010                        41,310                    42,263       42,450
                                                                                              4.70        1 Dec 2017             2,250           2,396      2,356
1.00       1 Sep 2011                        10,671                    10,629       10,610
                                                                                              4.80      15 Jun 2021                441             459        442
3.75       1 Jun 2012                         4,667                     4,909        4,787
                                                                                              8.75      19 Aug 2022                801           1,129      1,155
3.00       1 Jun 2014                        10,285                    10,480       10,596
                                                                                              5.70      18 Jun 2029              5,849           6,598      6,362
4.00       1 Jun 2016                         1,840                     1,955        1,942
                                                                                              4.95      18 Jun 2040                525             554        551
4.00       1 Jun 2017                         4,225                     4,472        4,334
4.25       1 Jun 2018                           750                       804          848    Province of Manitoba
3.75       1 Jun 2019                        13,022                    13,366       13,528    4.75       11 Feb 2020             4,579           4,769      4,558
5.75       1 Jun 2033                         4,475                     5,642        5,490
                                                                                              Province of New Brunswick
5.00       1 Jun 2037                        17,857                    21,093       20,965
                                                                                              4.50        4 Feb 2015             2,663           2,838      2,666
4.00       1 Jun 2041                         6,184                     6,277        6,171
                                                                                              4.55      26 Mar 2037              1,731           1,671      1,658
Business Development Bank of Canada
                                                                                              Province of Newfoundland
4.75      26 Jul 2021              175                                       186       175
                                                                                              5.60       17 Oct 2033               488             538        533
Canada Housing Trust                                                                          4.50       17 Apr 2037             2,461           2,359      2,362
0.40     15 Mar 2010                          4,730                     4,730        4,746
                                                                                              Province of Nova Scotia
0.39     15 Sep 2010                         11,815                    11,815       11,827
                                                                                              4.50        1 Jun 2013             3,692           3,939      3,904
4.60     15 Sep 2011                         22,316                    23,651       23,360
                                                                                              5.80        1 Jun 2033             2,096           2,366      2,405
4.00     15 Jun 2012                          7,870                     8,295        7,838
4.80     15 Jun 2012                          2,785                     2,992        2,788    Province of Ontario
4.55     15 Dec 2012                         13,113                    14,050       13,810    0.56        3 Dec 2010             8,925           8,906      8,909
0.40     15 Jun 2013                          3,920                     3,902        3,912    4.75        2 Jun 2013             5,641           6,071      5,887
0.95     15 Mar 2014                          2,375                     2,416        2,390    4.30        8 Mar 2017             7,710           8,034      7,415
3.15     15 Jun 2014                         22,310                    22,658       22,609    4.40        2 Jun 2019             7,843           8,016      7,948
0.80     15 Sep 2014                          3,777                     3,828        3,801    4.85        2 Jun 2020             1,612           1,688      1,628
4.10     15 Dec 2018                          4,400                     4,539        4,497    6.50        8 Mar 2029             6,978           8,534      8,309
                                                                                              6.20        2 Jun 2031             2,190           2,616      2,571
Farm Credit Corporation
                                                                                              5.85        8 Mar 2033             4,000           4,608      4,705
4.55      12 Apr 2021                            350                         370       347
                                                                                              5.60        2 Jun 2035            15,895          17,929     18,124
Ontario Infrastructure                                                                        4.70        2 Jun 2037             3,030           3,045      3,063
3.95        3 Jun 2013                           877                         912       874    4.60        2 Jun 2039             9,525           9,457      9,288
4.70        1 Jun 2037                           769                         722       760
                                                                                              Province of Quebec
                                                                     232,853       231,451    0.43      21 Jun 2010              1,015           1,015      1,018
                                                                                              6.25        1 Dec 2010                55              58         59
Municipal and Provincial – 30.4%
                                                                                              0.42      16 May 2011                550             549        552
55 School Board Trust Series A Secured Debenture
                                                                                              3.58       16 Sep 2013             3,275           3,248      3,280
5.90       2 Jun 2033                501                                     539       521
                                                                                              0.43       10 Dec 2013             2,685           2,667      2,680
City of Montreal                                                                              5.50        1 Dec 2014             4,184           4,660      4,502
5.00        1 Dec 2018                           635                         660       630    0.35        1 Dec 2014             6,790           6,664      6,765
                                                                                              4.25        1 Dec 2015               505             529        498
City of Toronto
                                                                                              4.50        1 Dec 2017             1,865           1,951      1,828
4.95       27 Jun 2018                           635                         665       633
                                                                                              4.50        1 Dec 2018             7,898           8,167      7,845
Ottawa Hydro Holdings                                                                         4.50        1 Dec 2019             4,230           4,316      4,262
4.93       9 Feb 2015                          1,453                    1,545        1,518    11.00     15 Aug 2020              1,726           2,695      2,706
                                                                                              6.25        1 Jun 2032             3,036           3,617      3,444
Alberta Capital Finance
                                                                                              5.75        1 Dec 2036             6,215           7,092      6,993
4.65      15 Jun 2017                            446                      475          446
4.45      15 Dec 2025                          3,185                    3,089        3,121    5.00        1 Dec 2038            10,290          10,673     10,238



The accompanying notes are an integral part of these financial statements.

14             Family Savings Plan
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Government Grants (continued)
(Appendix I to Schedule I)
Statement of Investment Portfolio
As at October 31, 2009 (in thousands of dollars)
                                                                         Fair    Average                                                        Fair            Average
Security                            Par Value ($)                  Value ($)     Cost ($)   Security                    Par Value ($)     Value ($)             Cost ($)

Bonds (continued)                                                                           Bonds (continued)
Municipal and Provincial – 30.4% (continued)                                                Corporate – 24.3% (continued)
Province of Saskatchewan                                                                    Honda Canada Finance Inc.
4.65%       5 Sep 2017           1,059                                  1,128      1,076    5.68%     26 Sep 2012                1,200        1,283               1,280
6.40        5 Sep 2031           2,449                                  3,011      2,902    5.61      12 Sep 2013                1,135        1,213               1,135
4.75        1 Jun 2040           2,280                                  2,338      2,245
                                                                                            Hydro One Inc.
                                                                     181,381     178,065    5.49      16 Jul 2040                3,200        3,316               3,214
Corporate – 24.3%                                                                           Investors Group Inc.
407 International Inc.                                                                      6.75        9 May 2011               1,545        1,646               1,690
7.00       26 Jul 2010                           895                    1,052      1,093
                                                                                            Manulife Financial Capital Trust
5.96       3 Dec 2035                          2,000                    2,142      2,102
                                                                                            6.70      30 Jun 2012                3,920        4,230               4,346
Bank of Montreal                                                                            4.85       12 Dec 2015               1,865        1,820               1,880
5.04       8 Apr 2013                          3,400                    3,663      3,622    7.40       31 Dec 2108               1,200        1,341               1,200
6.02       2 May 2018                          3,300                    3,753      3,630
                                                                                            Merrill Lynch Financial Assets
4.63      29 Dec 2049                          2,900                    2,909      2,827
                                                                                            4.82       12 Feb 2015                 815          765                 820
5.47      31 Dec 2049                          3,335                    3,525      3,519
                                                                                            4.62       12 Nov 2015               1,235        1,130               1,222
Bank of Nova Scotia                                                                         4.48        12 Jul 2037                920          825                 900
6.63      30 Jun 2012                          3,435                    3,750      3,765
                                                                                            Milit-Air Inc.
6.28      29 Dec 2049                          1,900                    2,068      2,101
                                                                                            5.75        30 Jun 2019              3,400        3,750               3,674
BCIMC Realty Corporation
                                                                                            National Bank of Canada
4.65      10 Feb 2015                          2,095                    2,173      2,160
                                                                                            5.55      15 Nov 2018                1,456        1,576               1,568
5.65       5 Jan 2018                          1,385                    1,486      1,506
                                                                                            NAV Canada
Bell Canada
                                                                                            4.71     24 Feb 2016                 3,500        3,711               3,628
6.90      15 Dec 2011                          2,500                    2,732      2,757
                                                                                            OMERS Realty Corporation
Blue Water Bridge Authority
                                                                                            4.74      4 Jun 2018                 3,585        3,681               3,710
6.41        9 Jul 2027                         2,371                    2,220      2,241
                                                                                            Ontrea Inc.
Canadian Imperial Bank of Commerce
                                                                                            5.57        9 Apr 2013               1,328        1,447                1,411
5.00      10 Sep 2012              248                                    266        266
4.75      22 Dec 2014            8,680                                  9,277      8,918    Peoples Trust
                                                                                            4.10        1 Jul 2015               2,000        1,766               1,778
Caterpillar Financial Service Ltd.
5.20         3 Jun 2013                          950                     1,010       999    Power Corporation of Canada
                                                                                            7.57      22 Apr 2019                1,308        1,492               1,502
Citigroup Finance Canada
4.75       17 Mar 2014                         2,000                    1,948      2,060    PSP Capital Inc.
                                                                                            4.57        9 Dec 2013               4,196        4,467               4,219
Enbridge Gas Distribution
3.95      15 Feb 2010                          3,200                    3,227      3,154    RBC Capital Trust
                                                                                            4.87      29 Dec 2049                6,000        6,132               5,950
Gaz Metropolitain Inc.
4.93      18 Jun 2019                          2,500                    2,585      2,545    Real Estate Asset Liquidity Series Class A
                                                                                            4.62       12 Sep 2016                1,350       1,215               1,333
GE Capital Canada
                                                                                            5.08       12 Oct 2036                  745         719                 763
4.65       11 Feb 2015                         5,650                    5,762      5,653
4.55       17 Jan 2017                           800                      790        750    Royal Bank of Canada
5.53       17 Aug 2017                         1,800                    1,870      1,782    5.00      20 Jan 2014                3,400        3,677               3,653
5.73       22 Oct 2037                         2,000                    1,826      1,704    3.55       1 Sep 2019                6,446        6,225               6,300

Great West Lifeco Inc.                                                                      Royal Office Finance
6.14      21 Mar 2018                          1,352                    1,485      1,482    5.21       12 Nov 2032               2,236        2,213               2,229

Greater Toronto Airports                                                                    Sun Life Capital Trust
5.96       20 Nov 2019                         3,399                     3,740     3,712    6.87       31 Dec 2011               5,440        5,882               6,044
                                                                                            Thomson Corporation
The accompanying notes are an integral part of these financial statements.
                                                                                            4.35      1 Dec 2009                 2,020        2,025               2,020

                                                                                                                                          Family Savings Plan        15
Canadian Scholarship Trust – Family Savings Plan
Audited Financial Statements

Government Grants (continued)
(Appendix I to Schedule I)
Statement of Investment Portfolio
As at October 31, 2009 (in thousands of dollars)
                                                                         Fair      Average
Security                            Par Value ($)                  Value ($)       Cost ($)

Bonds (continued)
Corporate – 24.3% (continued)
Toronto Community Housing Corporation
4.88%     11 May 2037              283                                       265       284
Toronto Dominion Bank
5.14      19 Nov 2012                             80                       86           86
4.85      13 Feb 2013                          3,400                    3,647        3,626
Transcanada Pipelines
5.65      15 Jan 2014                          4,050                    4,460        4,300
8.29       5 Feb 2026                          1,800                    2,278        2,253
Wells Fargo Finance Canada
3.60       28 Jun 2010                           375                      381          372
4.40       12 Dec 2012                         1,400                    1,454        1,377
                                                                     145,377       144,115
Total Fixed Income – 93.7%                                           559,611       553,631
Variable Rate Securities – 5.0%
Toronto-Dominion Bank S&P/TSX 60 Index Linked Note
          26 Oct 2010            5,000             4,984                             5,000
           19 Oct 2011           5,000             5,307                             5,000
           20 Oct 2011          15,000            14,703                            15,000
          26 Oct 2012            5,000             4,948                             5,000
                                                                       29,942       30,000
Total Fixed Income – 98.7%                                          589,553        583,631
Cash and Short-term Investments – 1.3%                                   7,789       7,789
Total Portfolio Assets – 100.0%                                      597,342       591,420
Government Grant Investments Allocation
Plan II                                                                  591           573
Founders’ Plan                                                        46,943        46,440
Group Savings Plan                                                   190,652       188,694
Group Savings Plan 2001                                              318,463       315,282
Family Savings Plan                                                   30,402        30,153
Individual Savings Plan                                                2,502         2,489
                                                                    589,553        583,631
Cash and Short-term Investments Allocation
Plan II                                                                    22           22
Founders’ Plan                                                            641          641
Group Savings Plan                                                      2,487        2,487
Group Savings Plan 2001                                                 4,299        4,299
Family Savings Plan                                                       323          323
Individual Savings Plan                                                    17           17
                                                                        7,789        7,789




The accompanying notes are an integral part of these financial statements.

16             Family Savings Plan
Canadian Scholarship Trust Plan
Sponsored by
Canadian Scholarship Trust Foundation
2225 Sheppard Avenue East, Suite 600
Toronto, Ontario M2J 5C2
1.877.333.RESP (7377)

Trustee
RBC Dexia Investor Services Trust
155 Wellington Street West, 7th Floor
Toronto, Ontario M5V 3L3

Legal Counsel
Heenan Blaikie LLP
P.O. Box 2900
Bay Adelaide Centre
333 Bay Street, Suite 2900
Toronto, Ontario M5H 2T4

Auditors
Deloitte & Touche LLP
Brookfield Place
181 Bay Street, Suite 1400
Toronto, Ontario M5J 2V1

Distributor
C.S.T. Consultants Inc.
2225 Sheppard Avenue East, Suite 600
Toronto, Ontario M2J 5C2

Bank
Royal Bank of Canada
Royal Bank Plaza
South Tower
200 Bay Street, 10th Floor
Toronto, Ontario M5J 2J5




For updates on your Plan account,
login to Online Services at www.cst.org



Canadian Scholarship Trust Plan is a trademark of the Canadian Scholarship Trust Foundation.   2003 M1-E (2009-10)

								
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