Investment Objective

The fund objective is to provide long-term capital appreciation through a portfolio of investments in U.S. stocks, both long and short positions, that are sufficiently diversified to minimize investment risk. The strategy seeks to outperform the S&P 500 by 2% over a full market cycle.

Growth of $1,000†

Industry Group Mix

Annual Returns to March 31 (%)
1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
—	—	—	—	—	—	—	—	-16.2	-23.6
Annualized Returns to March 31, 2009 (%)
Qtr*	6 mo*	1 yr	2 yr	3 yr	4 yr	5 yr	6 yr	7 yr	10 yr
-8.0	-15.3	-23.6	-20.0	—	—	—	—	—	—

Top Holdings (%) Long Positions** Exxon Mobil Corp. Microsoft Corp. Chevron Corp. Hewlett-Packard Co. Intel Corp. 5.0 3.4 3.0 3.0 2.6 Short Positions** Pitney Bowes Inc. Plains Exploration & Production Co. Lam Research Corp. International Rectifier Corp. Autozone Inc. 1.1 1.0 0.8 0.8 0.8

Industry Group Mix (%) Sector S&P 500 INTEGRA Long Short Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecommunication Services Utilities 13.0 3.3 9.7 8.8 12.8 15.3 10.8 18.0 4.0 4.3 13.2 3.0 7.7 6.9 15.1 16.0 8.8 21.9 3.9 3.5 16.3 4.1 10.9 10.7 15.5 18.2 17.7 27.8 4.5 4.1 3.1 1.1 3.2 3.8 0.4 2.2 8.9 5.9 0.6 0.6

†Growth is calculated based on compounded monthly returns.
*Performance for the quarter and 6 months to March 31 represent the actual total return of the funds for the period, and are not annualized.
**As a percentage of the total portfolio

Analytic Investors - Core Manager
Los Angeles, CA., founded 1970, managing $8.7 billion U.S.

The 130/30 Equity process is a core, “benchmark-oriented” strategy designed to add significant value through stock selection. Analytic Investors uses a 70-factor quantitative approach to identify stocks currently ‘in and out of favour’ and maintain volatility no greater than the S&P 500 Index. The strategy invests 130% long and 30% short, thereby fully utilizing Analytic’s ability to identify and execute on stocks expected to out/underperform.

The U.S. Equity strategies posted strong relative results during the quarter, benefiting primarily in January and February. Trends that began during the fourth quarter of 2008 persisted through January, February and the first nine days of March. In particular, higher-quality factors such as Interest Coverage Ratio and Asset Utilization added value during the period. As well, Leverage, the leading negative exposure in the model, added value, as investors continued to shy away from companies with this characteristic. Valuation factors, however, remained somewhat neutral to negative during the quarter. However, growth factors such as Return on Equity, Return on Assets, and Recent Earnings Growth, all with positive exposures in the model, performed well during January and February and contributed accordingly.

March painted a slightly different picture. Although many of the stock selection factors that added value during January and February continued to do so, reversals were also evident. The latter half of the month exhibited a flight to risk, as beaten-down companies, particularly in the financial sector, drove market returns. This junk rally helped factors such as Leverage rebound after the Fed announced intentions to bring liquidity back into the market.

All performance is presented in Canadian dollar terms, gross of investment management fees. Past performance is not indicative of future results.