Bruno Roy

CN Investment Division invests the assets of the Canadian Railway Co. in a variety of asset classes including: (1) cash and short-term investments (2) bonds (3) equities (4) real estate and (5) oil & gas assets. On an annual basis, the CN Board of Directors reviews and confirms or amends the Statement of Investment Policies and Procedures (SIPP) which includes the plans long-term asset class mix and related benchmark indices. This Policy is based on a long-term forward-looking view of the world economy, the dynamics of the plans benefit liabilities, the market return expectations of each asset class and the current state of the financial markets.Also on an annual basis, CN Investment Division develops a short-term asset mix target for the upcoming year. The asset mix may differ from the SIPP due to current economic and market conditions and expectations. The CN Investment Committee of the Board regularly compares the actual asset mix to the SIPP and CN Investment Division's asset mix target and evaluates the actual performance of the trust funds relative to the performance of the SIPP. This is calculated using the SIPP asset mix and the performance of the benchmark indices. The Board's approval is required for all major investments in illiquid securities. The SIPP allows for the use of derivative financial instruments to implement strategies or to hedge or adjust existing or anticipated exposures. The SIPP prohibits investments in securities of the Canadian National Railway Co. or their subsidiaries.All major investments in illiquid securities must be approved by the CN Investment Committee. The use of derivative financial instruments to implement strategies or to hedge or adjust existing or anticipated exposures is allowed by the SIPP. Investments in the securities of the Canadian Railway Co. or its subsidiaries are prohibited.In general, CN Investment Division typically allocates the assets as follows: approximately 50% to 55% to equities, approximately 38% to 40% to bonds, approximately 3% to 5% to real estate, approximately 2% to 5% to oil and gas assets and approximately 1% to 5% to cash.Annually, the CN Investment Division, a division of the Company created to invest and administer the assets of the plans, proposes a short-term asset mix target (Strategy) for the coming year, which is expected to differ from the Policy, because of current economic and market conditions and expectations. The Committees approval is required for all major investments in illiquid securities. The SIPP allows for the use of derivative financial instruments to implement strategies or to hedge or adjust existing or anticipated exposures. The SIPP prohibits investments in securities of the Company or its subsidiaries.