Financial Planning Assumptions – (Market Capitalization Weighted Portfolio)

This guide is intended to provide Canadian financial planners with our best estimates of future asset
class returns and volatilities to produce financial projections for their clients. Throughout this document,
it is assumed that investors hold a broadly diversified portfolio of publicly traded Canadian fixed
income securities and global equity, the latter including both developed and emerging markets. These
estimates are valid uniquely in the context of an investor who purposely avoids concentration in one
or a few securities or sectors. Our investment horizon is 30 years. A comprehensive description of our
methodology is also available. For users of the Naviplan financial planning software, key inputs are
highlighted in green. We have added an appendix to provide users of Naviplan with data presented in
a more compatible format.

We have made a few changes from the winter 2022 edition. The “Global Equity – Standard” portfolio
replaces the “Global Equity 33-33-33” portfolio. While the previous portfolio was equally-weighted
across Canadian, US and international equities, this new portfolio has weights of 1/3 for Canadian
equity, while all other regions are market cap weighted. We have also launched a separate report for
portfolios with factor-tilts.