Investment Objective

The objective of this fund is to provide long-term capital appreciation through a portfolio of non-North American equities that is sufficiently diversified to minimize investment risk.

Fund Details

• Fund Inception: December 1, 1996
• Net Assets: $59.8 million
• Primary Investments: Non-North American stocks
• Distributions: Monthly as required
• RRSP eligible

Growth of $1,000†

Regional Mix

Annual Returns to September 30 (%)
1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
28.1	4.7	-20.2	-12.5	5.0	17.3	18.1	11.1	13.2	-21.7
Annualized Returns to September 30, 2008 (%)
Qtr*	6 mo*	1 yr	2 yr	3 yr	4 yr	5 yr	6 yr	7 yr	10 yr
-20.0	-20.2	-21.7	-5.9	-0.5	3.8	6.4	6.2	3.3	3.0

Top 10 Equity Holdings (%) (As a percentage of the total portfolio) Nestlé S.A. Unilever N.V. Roche Holding AG Vodafone Group PLC Petroleo Brasileiro S.A. ADR Standard Chartered PLC Jardine Matheson Holdings Ltd. Cable & Wireless Pub Ltd. Co. Japan Tobacco Inc. Novartis AG 2.9 2.7 2.5 2.5 2.2 2.1 2.0 1.9 1.9 1.8

Regional Mix (%) Region MSCI-EAFE Index INTEGRA U.K. Europe Japan Pacific Basin Emerging Markets 21.7 46.5 22.1 9.7 — 18.9 41.8 19.2 8.3 11.8

†Growth is calculated based on compounded monthly returns.
*Performance for the quarter and 6 months to September 30 represent the actual total return of the funds for the period, and are not annualized.

Newton Capital Management - Global Thematic Core
London, England, founded 1978, managing $75.3 billion.

Newton’s approach recognizes that no economy, industrial sector or company should be seen in isolation when there is a global market for goods and services.

The third quarter has been a very challenging period for global equity markets, with the ramifications of Fannie Mae, Freddie Mac, Lehmans, AIG, Merrill Lynch and Wachovia being worked through and felt around the globe. Europe has also had its fair share of problems with the Benelux countries rescuing Fortis and Dexia, and the UK Government attempting to force HBOS into the arms of Lloyds TSB. In addition, the news has continued to deteriorate from an economic standpoint, and it is clear that the world economy is going through a very difficult period. The uncertainty created has lead to a sell-off across markets, and in particular an aggressive sell-off in perceived risk assets, namely commodities and developing economies.

Stock selection has suffered across most sectors. In particular the broadly positive stance towards the commodity and developing economy areas has been a negative. We focused on those economies which we believe to be well placed, and is invested on a stock by stock basis. The same can be said for the resources sectors, where we retain an allocation to the energy, mining and agricultural sectors, where we continue to believe that the longer term fundamentals are strong.

A further disappointment has come from holdings in the more defensive sectors of the market; stock selection has been negative in healthcare and consumer staples, two of the better performing sectors, where we are overweight. However, of particular disappointment has been the very poor returns from the telecom sector, which has thus far proved not to be resilient in the market sell off. We expect there to be a reversal in this sector performance, and the outperformance of consumer staples and healthcare to continue, and within that the returns from our stocks to improve.

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