Investment Objective

The objective of this fund is to achieve long-term investment returns through a portfolio of U.S. equities that are sufficiently diversified to minimize investment risk. The fund may hold an aggregate of up to 5% in cash or cash equivalents.

Fund Details

• Fund Inception: November 1, 2001
• Net Assets: $69.1 million
• Primary Investments: Mid to large cap U.S. stocks
• Distributions: Monthly as required
• Not RRSP eligible

Growth of $1,000*‡

Industry Group Mix

Annual Returns to September 30 (%)*
1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
—	—	—	—	14.1	18.1	8.5	8.9	2.1	-22.0
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
-10.3	-12.5	-22.0	-10.8	-4.7	-1.6	2.1	4.0	—	—

Top 10 Equity Holdings (%) (As a percentage of the total portfolio) J.P. Morgan Chase & Co. Apache Corp. CA Inc. Viacom Inc. Microsoft Corp. Noble Energy Inc. Pitney Bowes Inc. Wells Fargo & Co. AngloGold Ashanti Ltd. ADR Raytheon Co. 5.0 4.9 4.8 4.2 4.0 3.8 3.8 3.5 3.1 3.0

Industry Group Mix (%) Sector Russell 1000 Index INTEGRA Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecommunication Services Utilities 12.9 3.8 11.3 9.1 11.3 13.0 15.9 15.8 3.0 3.9 13.5 9.4 15.8 8.6 9.4 6.2 18.6 12.5 4.4 1.6

†This fund is no longer offered by way of prospectus and is only available for accredited investors or members of an employer-sponsored pension plan, other than a Group RRSP or a DPSP.
*Pursuant to securities legislation the fund cannot disclose performance returns prior to the date it commenced offering its units to the public by way of a prospectus.
‡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.

NWQ Investment Management - Value Manager
Los Angeles, CA., founded 1982, managing $14.5 billion U.S.

NWQ invests in undervalued companies with perceived catalysts to improve profitability and unlock value.

The U.S. stock market declined significantly during the third quarter of 2008. Conditions in the credit markets deteriorated significantly and liquidity for many companies virtually evaporated. The strains became so severe that several of the largest financial companies in the U.S. collapsed or were acquired. These changes in the financial landscape are the most dramatic since the Great Depression and occurred in about four weeks. The Treasury and the U.S. Federal Reserve have taken unprecedented actions to try and stabilize the credit markets. In the midst of the current turmoil the Treasury proposed a $700 billion financial bailout program, which was recently approved by the U.S. Congress. This program could help stabilize the financial markets and improve badly needed liquidity. While this aggressive response should avert a collapse in the U.S. financial system, it will not keep the U.S. economy from falling into recession. While the weakness in the economy will create further challenges for the markets, easing inflationary pressures, and greater clarity regarding the election, regulation and fiscal policy could create a favourable environment for financial assets in 2009.

The Fund’s exposure to financials, oil and natural-gas exploration and production companies, as well as gold stocks were the main contributors to the underperformance. The Fund benefited from its exposure to defence companies, healthcare, and a less-than-benchmark weighting in utilities.

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