2022-23 SGI CANADA Annual Report

The Corporation's portfolio market-based return was 1.7% in 2023, compared to a 1.6% return in 2022. The 2023 returns were driven by positive global equity, mortgage and real estate returns. The following table illustrates the investment portfolio's actual performance by asset class for 2023 compared to the index and 2022 returns. Annual Returns (%) Actual Index Actual Asset Class Benchmark Index 2023 2023 2022 Short-term bonds FTSE TMX Short-term Bond 0.8 0.7 -2.6 Mortgages Canadian equities Global equities FTSE TMX Short & Mid-term Bonds 3.6 1.0 1.9 S&P/TSX Composite -4.6 -5.2 19.7 MSCI ACWI ($C) 4.8 0.3 9.4 Global small cap equities MSCI ACWSCI ($C) 0.3 -0.2 -6.0 Real estate Investment Property Databank 2.6 4.4 16.8 Consolidated Statement of Cash Flows Operating activities Investing activities Financing activities Net cash flow (thousands of $) 2023 2022 Change 107,422 176,610 (69,188) (110,450) (80,961) (29,489) (7,398) (91,648) 84,250 (10,426) 4,001 (14,427) Operating activities Cash flows provided by operating activities remained positive in 2023, with the Corporation's positive cash flow used to fund investment purchases. Investing activities The Corporation's excess cash from operating activities is invested in its investment portfolios. The investment managers actively trade each investment portfolio in the capital markets following the restrictions set out in each legal entity's Statement of Investment Policies and Goals. During 2023, $1,046.1 million was received through investment sales and $1,172.7 million was used to purchase investments. The additional funds used to purchase investments during the year were from cash generated from operations. Financing activities Financing activities relate to dividend payments made to the Corporation's parent and payments made on building leases. 2022-23 SGI CANADA Annual Report 19

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