How the Fund is Managed *

• The Fund was created to provide investors with exposure to some of the world’s leading dividend-paying issuers based outside North America.
• The portfolio management team invests in issuers they believe have progressive dividend policies, typified by strong dividend growth rates, attractive and sustainable dividend payout ratios and currently attractive dividend yields.
• The Fund’s focus will be on:
  1. Absolute returns although it will also be benchmarked against the MSCI EAFE (Total Return) Index and the Dow Jones EPAC Select Dividend (Total Return) Index; and
  2. Tax-efficient monthly distributions (see below).
• The Fund will be actively risk-managed with a view to reducing volatility via exposure to all or most of the 10 key industry sectors and will seek to achieve a weighted average dividend yield 50% above the dividend yield on the MSCI EAFE (Total Return) Index.
• Active currency hedging – at least 50% of Fund’s non-Canadian dollar exposure.
• Selective use of options to generate additional returns and improve tax efficiency of distributions.
• Weighted average credit rating of issuers in Fund equivalent to at least Standard & Poor’s “A” rating.

* Underlying fund