EDUCATION SAVINGS PLAN GUIDE

PROVIDINGa brighter

FUTUREFOR CHILDREN

TODAY

Education Funds International

2 ABOUT HERITAGE | ESP GUIDE

ABOUT HERITAGE

Heritage, the Education Savings Plan provider of choice

Heritage Education Funds International, LLC is a Canadian-based company and is one of the leading distributors of Education Savings Plans (ESPs) with over 30 years of experience.

Our network of Sales Representatives has been helping families save for their children’s/grandchildren’s post-secondary/tertiary education since 1983.

Heritage International Scholarship Trust Foundation is a not-for-profit corporation governed by its board of directors. The Foundation has over US$111.8 million in assets under management as at December 31, 2015.

As of December 31, 2015, the Foundation has paid out over US$138.4 million in savings and Educational Assistance Payments (ESPs) / “Scholarships” to subscribers and beneficiaries.

Our subscribers include parents, grandparents, aunts, uncles, and other family members and family friends throughout the Caribbean, with enrollment of over 55,000 children into the Heritage International Scholarship Trust Plan.

LOWER-RISKINVESTMENTS

OVER

30Y E A R S E X P E R I E N C E

OVER

US$138.4MILLION IN PAYOUTS1

1. These payouts consist of subscribers’ contributions (less applicable fees). Educational Assistance Payments/Scholarships (EAPs) consist of the beneficiary’s share of pooled income or self- determined income, and top ups of the EAPs. A top up of the EAP is a discretionary payment. Discretionary payments are not guaranteed. You should not count on receiving a discretionary payment. The Foundation decides if it will make a payment in any year and how much the payment will be.

OVER

55,000BENEFICIARIES ENROLLED

OVER

US$111.8MILLION IN ASSETS UNDER

MANAGEMENT

3ESP GUIDE | OUR KEY PARTNERS

HERITAGE INTERNATIONAL SCHOLARSHIP TRUST FOUNDATION

Heritage Education

Funds International, LLC.

EDUCATION SAVINGS PLANHeritage International Scholarship Trust Plan

FOUNDATION AND REGISTRAR

Heritage International Scholarship Trust Foundation

TRUSTEE AND CUSTODIAN

Butterfield Trust (Bermuda) Limited

DEPOSITORY

Bank of N.T., Butterfield & Son Limited

(Bermuda)

AUDITOR

KPMG LLP (Chartered Accountants)

PORTFOLIO ADVISORS

Scotia Asset Management L.P.(Member of Bank of Nova Scotia)

(Canada)

Fiera Capital Corporation

LEGAL COUNSEL

McMillan LLP (Canada)Appleby (Bermuda)

Myers, Fletcher & Gordon (Jamaica)

Higgs & Johnson (Bahamas)Deacons (Hong Kong)

HARNEYS (British Virgin Islands)

Heritage Education Funds

International (Jamaica) Limited

Heritage Agency

(Bermuda) Limited

Heritage Education Funds

International (Asia) Limited

Heritage International (Bahamas)

Limited

Mutual Insurance (BVI) Agency Limited

Heritage Education Funds International, LLC is currently working on adding othercountries to the distribution list.

Registered Representatives

4 THE COST | ESP GUIDE

HOW MUCH WILL IT COST?

It is estimated that the full cost of a 4-year post-secondary/tertiary education for international students could cost....

Year of Birth

Year of School Entrance

Canada1 Caribbean Region2

2018 2036 $167,232 $97,492

2017 2035 $159,269 $92,849

2016 2034 $151,685 $88,428

2015 2033 $144,461 $84,217

2014 2032 $137,582 $80,207

2013 2031 $131,031 $76,387

2012 2030 $124,791 $72,750

2011 2029 $118,849 $69,285

2010 2028 $113,189 $65,986

2009 2027 $107,799 $62,844

2008 2026 $102,666 $59,851

2007 2025 $97,777 $57,001

2006 2024 $93,121 $54,287

2005 2023 $88,687 $51,702

2004 2022 $84,464 $49,240

2003 2021 $80,442 $46,895

All currencies are converted to U.S. dollars.

Conversion rates as reported on June 1, 2016

at www.bloomberg.com:

$1 CAD = USD$0.7645

$1 GBP = USD$1.4413

$1 JMD = USD$0.0080

The costs are for international students (except Caribbean Region) and are averaged based on the university and the program of study selected. British Overseas Territory students are exempt from International student rates under certain conditions.

1 Canada - www.university.ca

2 Caribbean Region - www.utechjamaica.edu.jm www.mona.uwi.edu

3 United Kingdom - www.topuniversities.com www.internationalstudent.com/study_uk

4 United States - www.collegeboard.org

Amounts can and will vary based on currency exchange rate fluctuations and the type of program selected.

United Kingdom3

U.S.A4

$248,064 $388,515

$236,251 $370,014

$225,001 $352,394

$214,287 $335,613

$204,083 $319,632

$194,365 $304,411

$185,109 $289,916

$176,294 $276,110

$167,900 $262,962

$159,904 $250,440

$152,290 $238,514

$145,038 $227,156

$138,131 $216,339

$131,554 $206,038

$125,289 $196,226

$119,323 $186,882

5ESP GUIDE | THE SOLUTION

HOW YOU WILL PAY FOR IT? To fund a child’s post-secondary/tertiary education, families may have to:

1 Depending on your region, interest rates may vary from 7% to 11.75% per annum. The loan repayments are calculated over a 10-year period at an average rate of 9% per annum2 Educational Assistance Payment is calculated based on payments to students who received all three EAPs (2013-2015). Past performance is not indicative of future returns.

A loan of US$26,000 could result in repayment

of approximately US$39,5231.

US $26,000 Loan

US $13,523 Interest1

ESP contribution of US$83/month for a new born child for 18 years

covers approx. US$26,0002

ESP contribution of US$286/month for a new

born child for 18 years covers approx. US$93,0002

The amount of monthly contribution in a Heritage ESP for a newborn child for 18 years could result in savings

and educational assistance payments (EAPs)2 as illustrated above.

US$83/m US$286/m

YOU ALREADY KNOW

WHAT YOUR OPTIONS ARE

Start saving in an ESP

Withdraw funds from their

personal savings, retirement

funds or investments

Mortgage their home

Borrow the money

Let their child earn the money or depend

on student loans

Pay-as-you-go

LOANS MAY BE AVAILABLE, BUT WILL YOU QUALIFY?

By contributing to a Heritage ESP you may significantly lessen the financial burden of post-secondary education funding. Knowing what your best options are and being prepared are the key elements of successful financial planning.

A loan of US$92,860 could result in repayment

of approximately US$141,3701.

US $93,000 Loan

US $48,370 Interest1

6

THE EARLIER your child is enrolled in an ESP,

THE LONGER your savings have time to grow.

START EARLY. SAVE OFTEN. STAY INVESTED.1

1 This illustration is based on annual contributions of $2,500 and excludes fees. The income that would be earned is assumed to be 5.20% gross per annum, compounded monthly, over 18 years. This assumption

is based on the 15 year return of the Merrill Lynch Corporate Government Bond Index as at December 31, 2015, which is an index comparable to the investments made by the Heritage Plan. Individual

circumstances and actual results may vary.

ESP contributions

Income earned on ESP contributions

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Newborn 2 4 6 8 10

AGE AT WHICH CONTRIBUTIONS BEGIN

ESP GUIDE | THE SOLUTION

Start saving today and benefit from the POWER OF COMPOUND GROWTH.

7THE SOLUTION | ESP GUIDE

There is a difference in education savings plans. Parents who know the facts choose the Heritage International Scholarship Trust Plan.

HELPING FAMILIES SAVE & INVEST FOR THEIR CHILDREN’S FUTURE POST-SECONDARY/TERTIARY EDUCATION

Some reasons why the Heritage International Scholarship Trust Plan

is the SOLUTION

• Sponsored by the NOT-FOR-PROFIT Heritage International Scholarship Trust Foundation.

• Lower risk investments: Your contributions are placed primarily in U.S. dollar GOVERNMENT ISSUED, GUARANTEED AND FIXED-INCOME INVESTMENTS. Income earned on contributions may be invested in equities to maximize returns.

• We offer a SELF-DETERMINED OPTION which allows you to receive all of your OWN INTEREST even if your child does not attend a post-secondary institution.1

• You may TRANSFER your plan to another beneficiary of your choice (up to age 22). IT’S YOUR RIGHT TO DO SO.1

• We provide a plan that includes a SELF-COMPLETION FEATURE1 for death and disability of a subscriber, at no extra cost.

• Educational Assistance Payments “Scholarships” are awarded for attendance at all recognized or accredited post-secondary educational institutions ANYWHERE IN THE WORLD. All that is required is proof of full-time or part-time registration.

• Flexible long-term savings plan tailored to your individual financial situation.

1 Some conditions apply. See prospectus for full details.

8 THE HERITAGE PLAN | ESP GUIDE

HOW DOES THE HERITAGE PLAN WORK?

Years

Acceptance of enrollment

Contribution period

MATURITY

Pay-out option selection180 days prior to maturity

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

1 Recommended if beneficiary is not pursuing post-secondary studies or if he/she is pursuing a program of less than two years.

There is a $110 per unit ONE TIME Membership Fee deducted from early contributions, which is not returned. An annual Depository Fee is deducted each year based on the number of units purchased and the contributions mode selected, to a maximum of $50.00 per year, per plan.

SCHOLARSHIP OPTION (Pooled ESP)

PAYMENT OF THREE EAPs/SCHOLARSHIPS IN THE 2ND, 3RD, 4TH YEAR OF POST-SECONDARY/TERTIARY STUDIES.

Allows up to 4 one-year programs of study in different educational institutions including full-time or part-time distance education or correspondence courses.

SELF-DETERMINED OPTION1

(Individual ESP)

LESS THAN A 2-YEAR PROGRAM

9ESP GUIDE | THE HERITAGE PLAN ESP

SELF-DETERMINED OPTION1

Your contributions (less fees and insurance premiums, if applicable) and all of your interest earned on your Plan only.

3RD SCHOLARSHIP2

Scholarship Cheque to Student

to help fund the 4th year of

full-time or part-time studies

• Your contributions (less fees) are returned at maturity, usually in the year the beneficiary turns 18 years old.

• Each EAP/Scholarship consists of an income earned on contributions (less fees), attrition3 and enhancement4.

PAY-OUT OPTIONS

You select the pay-out

option that meets your

requirements.

SCHOLARSHIP OPTION

Used to fund 2nd, 3rd and 4th years of post-secondary education. Paid to the student.

YOUR CONTRIBUTIONS (LESS FEES AND

INSURANCE PREMIUMS, IF

APPLICABLE) ARE RETURNED TO YOUAT THE MATURITY

OF YOUR PLAN.

Payable to the Subscriber(s) and may be used to fund 1st year of post-secondary

education.

1 Recommended if beneficiary is not pursuing post-secondary studies or if he/she is pursuing a program of less than two years.

2 Certain conditions apply. See prospectus for full details.

3 Attrition is the term that applies to the share of pooled income that remains in an ESP after beneficiaries in the same group as your beneficiary do not qualify for EAPs. See prospectus for full details.

4 Enhancements are discretionary payments. Discretionary payments are not guaranteed. You should not count on receiving a discretionary payment. The Foundation decides if it will make a payment in any given

year and how much that payment will be.

2ND

SCHOLARSHIP2

Scholarship Cheque to Student

to help fund the 3rd year of

full-time or part-time studies

1ST

SCHOLARSHIP2

Scholarship Cheque to Student

to help fund the 2nd year of

full-time or part-time studies

UNDER THE SCHOLARSHIP OPTION:

ALL SUBSCRIBERS’SAVINGS

10

Subscribers’ contributions are pooled and conservatively invested in various lower-risk investments that earn a stable and a competitive return, including:

• US-Federal Bonds

• US-Corporate Bonds

• Canadian-Corporate Bonds

The income earned in the Plan may be invested in a diversified portfolio of Canadian and US equities and

corporate bonds with the investment strategy of increasing returns through diversification of products and

market exposure.

HOW IS MY MONEY INVESTED?

1 Source: Heritage International Scholarship Trust Foundation, as at December 31, 2015.

2 The effective rate of return is calculated as the sum of EAPs for beneficiaries whose plans matured in 2012, and who received all three EAPs (2013-2015). Past performance is not indicative of future results.

Heritage International Scholarship Trust Plan, Asset Weightings for the period ending December 31, 20151

The Value of Long-Term Savings

Beneficiaries of the Heritage Plan received:

Sector Allocations

US-Federal Bonds

US-Corporate Bonds

Equities

Canadian-Corporate Bonds

7.0% which is the effective rate of return over the total life of the plan2.

47.4%

ESP GUIDE | HERITAGE PORTFOLIO

25.6%

25.2% 1.8%

11

THE HERITAGE INTERNATIONAL SCHOLARSHIP TRUST PLAN ADVANTAGESNo other education savings plan, life insurance product, bank, mutual fund or financial planning program can offer all of these advantages:

1 Certain conditions apply. See prospectus for full details.

OUTSTANDING PERFORMANCE

WORLDWIDE CHOICE

SELF-COMPLETION FEATURE1

CONVERSION PRIVILEGE1

SUBSTITUTION OF A CHILD (BENEFICIARY)1

FLEXIBLE MATURITY OPTIONS

SELF-DETERMINED OPTION1

ENROLLMENT AT A RECOGNIZED INSTITUTION

We have, over the past decade, consistently maintained a competitive rate of return on investments.Three years of Scholarships paid to Qualified Students (2013-2015) received a 7.0% average total return on their investment.

The child may receive Educational Assistance Payments to attend a recognized post-secondary/tertiary institution anywhere in the world.

In the event of your premature death or disability, the Self-Completion Feature ensures the return of your Contributions (less fees and insurance premiums, if applicable) based on the amount accumulated in the Plan at the time of your death or disability. It also ensures your child’s three years of Educational Assistance Payments are fully paid.

If you contribute monthly or annually, you may have a fully paid up Plan by exercising your conversion privilege.

You may transfer your Plan to any other beneficiary. If the present beneficiary and the new beneficiary are both under age 14, then an older child may be substituted. Substitution may occur after maturity if both beneficiaries are under the age of 22 and the new beneficiary is not older than the original beneficiary and no Educational Assistance Payments have been released.

This Scholarship Option1 is recommended if your child plans to attend a post-secondary/tertiary

educational institution (minimum 2 years).

Must be selected no later than 60 days prior to Maturity. If your child chooses a shorter program or decides not to attend at all, you may choose the Self-Determined Option. If selected, you may withdraw your savings and interest earned, less fees, at any time after Maturity.

(Proof Required)

Educational Assistance Payments are not awarded on the basis of exceptional grades. Students only need to be enrolled full-time or part-time at any recognized post-secondary/tertiary institution. All students will have the opportunity to pursue their own interests based on their own abilities and choices.

OUR ADVANTAGES | ESP GUIDE

12

Investment in an Education Savings Plan is considered a long term commitment and, as in any relationship, it is important to communicate and keep each other informed.

Heritage provides you with various documents (regular mail or electronically) to keep you well informed about your plan:

IMPORTANCE OF TWO WAY COMMUNICATION

If you’re looking for more ways to conserve the environment and save yourself time and money, receiving and viewing your documentation online can really make a difference.

You can always access your Statement of Account and all publications at HeritageESP.com.

Keep Heritage up to date should your personal and/or financial information change.

Stay informed and ask questions about your plan.

Stay on top of your investments by reviewing all reports, statements and materials we send to you.

A WELCOME PACKAGE: includes a trade

confirmation and is issued upon enrollment.

The Heritage International Scholarship Trust Foundation

ANNUAL REPORT: delivered annually and is made

available anytime through online access.

Your STATEMENT OF ACCOUNT1:

provided annually by the end of the 1st quarter, which

covers the following key areas:

• Annual and lifetime activity of the plan

• Plan review and illustration of benefits

• Delivery options of plan documentation

TAKE ACTION AND STAY INFORMED ABOUT YOUR INVESTMENT!

GO BEYOND RECYCLING TO KEEP OUR PLANET GREEN.

KEEP IN TOUCH | ESP GUIDE

1 May be viewed online any time at your convenience.

13

OUR BENEFICIARIES AND SUBSCRIBERS

told us how much having a Heritage ESP impacted their lives:

“My parents have been the greatest supporters of my dreams, even when these same dreams seemed out of reach financially. I have always worked hard, but I also needed the financial support provided by my Heritage scholarships to realize my college dreams. Without my supportive parents and without Heritage, I would never have been able to pursue an undergraduate degree in Environmental Engineering at my dream college, Princeton University. Thank you, Mom, Dad and Heritage for this amazing opportunity!”

MARISSA WEBBER, Beneficiary

“We have always thought that a legacy enriched with a solid educational background would be the most enduring and lasting gift that any parent could give a child. The Heritage Plan must be the most ingenious, creative and rewarding form of investment any parent could make on behalf of their children. Not only does the Plan return to parents their invested sum, but also “Scholarships” when it matters most. We have one regret and that this is not starting the Plan earlier. We therefore say to parents, please do not let your regret be similar to ours. Saving in the Heritage Plan should begin at the birth of your child.”

LEON AND AUDREY FORTE, Subscribers

ESP GUIDE | WHAT OUR CLIENTS SAY

14 KEEP IN TOUCH | ESP GUIDE

OUR BENEFICIARIES AND SUBSCRIBERS

told us how much having a Heritage ESP impacted their lives:

“When I was introduced to the Heritage International Scholarship Trust Plan, I immediately enrolled my three children. Having persevered through the years, steering the course in saving for my children’s post-secondary education, it has brought me a great deal of satisfaction in knowing that two of my children are attending university as a result of this exceptional Savings Plan. I do not have to worry about tuition for my third when that time comes. I do, wholeheartedly, recommend the Heritage Plan to all parents, grandparents, aunts and uncles and anyone who wishes to provide a sound financial base for a child’s post-secondary education, anywhere in the world. Enroll your child immediately, if not sooner; you will not regret it!”

DR. ROBERT ROBINSON, Subscriber

“I have invested into the Heritage Plan for my children over the years. Because of illness and life’s eventualities, I have had to stop my contributions. As soon as there was job security again, I resumed my savings into the Plan. The flexibility of the Plan allowed me options to make up the contributions for lost time. I received the maturity refunds when my children graduated high school and the scholarships started kicking in the year after. I was very happy that I could play my part in allowing them to realize their dreams of attending university. The Heritage Plan delivered when everything else failed.”

MICHELLE A. NEITA, Subscriber

“Education Savings Plans have worked and continue to work for me. My children benefitted and now I have all of my grandchildren enrolled in Heritage International Savings Plans. Heritage International provides me with peace of mind knowing that my funds are in a secure savings with a good return on investment for education.”

DAVID DODWELL, Subscriber

“EDUCATION IS THE MOST POWERFUL WEAPON WHICH YOU

CAN USE TO CHANGE THE WORLD.” — NELSON MANDELA

A University or College education may be the most

important advantage you’ll ever give your child.

Start saving now for the

GREATEST GIFTyour child will ever receive,

his/her future education.

One day they will thank youfor this most important gift.

For more information contact:Heritage Education Funds International, LLC.

Home Office:2005 Sheppard Ave. E., Suite 700, Toronto, ON, Canada M2J 5B4. Phone: 416. 502. 2500. Fax: 416.502.2555. Email: CustomerCare@HeritageESP.com.

Distributors: Heritage Education Funds International, LLC Heritage Education Funds International (Asia) Limited Heritage Education Funds International (Jamaica) Limited Heritage Agency (Bermuda) Limited Heritage International (Bahamas) LimitedMutual Insurance (BVI) Agency Limited

© 2016, Heritage Education Funds International, LLC

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Education Funds International