Investment Objective
The investment objective of the Fund is to generate income with low interest rate risk and with moderate risk of principal loss. The
Fund aims to achieve this strategy through exposure on a leveraged basis to the performance of an actively managed portfolio
principally comprised of adjustable rate senior secured loans (the “Floating Rate Portfolio”). While the Floating Rate Portfolio will
generally be invested in U.S. dollar denominated assets, it is intended that at all times at least 90% of the net asset value of the shares
will be hedged back to the Canadian dollar. The annual returns are expected to be approximately LIBOR plus 2-4% (Hedged).
The Sub-Advisor
Churchill Pacific Asset Management LLC (formerly known as Centre Pacific, LLC) is an experienced syndicated loan and
high-yield manager, specializing in the management and administration of non-investment grade and structured products.
It currently has assets under management of approximately U.S. $3.5 billion.
Historical Default Rate of Senior Loan Portfolios Managed by the Sub-Advisor
Q1 2008
2007
2006
2005
2004
2003
2002
2001
Sub-Advisor—Floating Rate Portfolio Default Rate
0.13%
0.08%
0.04%
0.12%
0.00%
0.00%
1.26%
0.66%
Moody's Leveraged Loan Default Rate
1.51%
0.14%
0.62%
1.75%
1.63%
3.68%
5.75%
6.17%
Net Historical Performance
1-year
Month:
Apr-08
Mar-08
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
-27.58%
Return:
14.92%
-2.67%
-13.46%
-13.02%
-0.36%
-6.29%
1.61%
4.46%
-1.19%
-12.38%
-0.55%
Universe of Senior Loans by Industry
Comparative Total Return Performance
Note: The underlying data has been obtained from sources considered to be reliable but its accuracy and completeness cannot be assured. This evaluation is for informational purposes only and is not intended to be an offer,
solicitation, or recommendation with respect to the purchase or sale of any security or a recommendation of the services supplied by any money management organization. Past performance is not a guarantee of future results.
