These lines allow investors to compare the performance of the fund with the performance of a benchmark index and the fund's category.

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1 OVERVIEW TAB Growth of 10,000 The Growth of $10,000 graph shows a fund's performance based on how $10,000 invested in the fund would have grown over time. The returns used in the graph are not load-adjusted. The growth of $10,000 begins at the date of the fund's inception, or the first year listed on the graph, whichever is appropriate. Located alongside the fund's graph line is a line that represents the growth of $10,000 in the benchmark index for that fund's category. A third line represents the fund's category. These lines allow investors to compare the performance of the fund with the performance of a benchmark index and the fund's category. Performance Fund - Expressed in percentage terms, Morningstar's calculation of total return is determined each month by taking the change in monthly net asset value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAVPS. Reinvestments are made using the actual reinvestment NAV, and daily payoffs are reinvested monthly. +/- Index - A benchmark index gives the investor a point of reference for evaluating a fund's performance. In all cases where such comparisons are made, Morningstar selects a benchmark index which best reflects the investment guidelines of the majority of funds in that category. The figure indicates the amount by which a fund over- or underperformed its benchmark during a given calendar year. +/- Category - The CIFSC category gives the investor a point of reference for evaluating a fund's performance. The +/- (Calendar Year) figure indicates the amount by which a fund over- or underperformed its category during a given calendar year. % Rank in Cat - This is the fund's total-return percentile rank relative to all funds that have the same category for the same time period. The highest (or most favourable) percentile rank is 1, and the lowest (or least favourable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Top Holdings These are the top holdings in the fund's portfolio, based on market value and ranked by the percentage of the fund's weight. Top Sectors These are the best performing sectors for the fund that is being displayed. Morningstar uses its own global industry sector security classification system, which divides the stock universe into three major economic spheres or Super Sectors, Cyclical, Defensive and Sensitive. Within each of these Super Sectors, three groups for Defensive and four groups for Cyclical and Sensitive are defined for a total of 11 sectors. Industry groups and specific industries within each sector permit further analysis.

2 The result is a unified system that is applicable to stocks, funds and portfolios. It allows investors to quickly evaluate the similarities and differences of funds and portfolios by comparing exposure to the three Super Sectors, but also permits further examination of holdings at a very granular level. The combined weight of stocks that cannot be identified or classified is shown as "Unclassified". Cyclical Basic Materials: Companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing. Companies in this sector include ArcelorMittal, BHP Billiton and Rio Tinto. Consumer Cyclical: This sector includes retail stores, auto and auto parts manufacturers, companies engaged in residential construction, lodging facilities, restaurants and entertainment companies. Companies in this sector include Ford Motor Company, McDonald's and News Corporation. Financial Services: Companies that provide financial services which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. Companies in this sector include Allianz, J.P. Morgan Chase and Legg Mason. Real Estate: This sector includes mortgage companies, property management companies and REITs. Companies in this sector include Kimco Realty Corporation, Vornado Realty Trust and Westfield Group. Sensitive Communication Services: Companies that provide communication services using fixedline networks or those that provide wireless access and services. This sector also includes companies that provide internet services such as access, navigation and internet related software and services. Companies in this sector include AT&T, France Telecom and Verizon Communications. Energy: Companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal. Companies in this sector include BP, ExxonMobil and Royal Dutch Shell. Industrials: Companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms as well as companies engaged in transportations and logistic services. Companies in this sector include 3M, Boeing and Siemens. Technology: Companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services. Also includes companies engaged in the manufacturing of computer equipment, data storage products, networking products, semiconductors, and components. Companies in this sector include Apple, Google and Microsoft. Defensive Consumer Defensive: Companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education & training services. Companies in this sector include Philip Morris International, Procter & Gamble and Wal-Mart Stores. Healthcare: This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term care facilities, and medical equipment and supplies. Companies in this sector include Astra Zeneca, Pfizer and Roche Holding.

3 Utilities: Electric, gas, and water utilities. Companies in this sector include Electricité de France, Exelon and PG&E Corporation. Dividend and Capital Gains Distributions NAVPS - A fund's Net Asset Value per Share (NAVPS) represents the assets under management divided by the number of shares or units held by its investors. Distribution Total - The total per unit payment for the most recent calendar year made to investors. In this case the total consists of any or all of the following distribution types: Capital Gains, Interest Income, Canadian Dividends, Return of Capital and Foreign Income. Capital Gains This figure is the difference between the buy and sell price of an asset - the profit gained. Interest Income The interest earned on cash and short-term investments. Canadian Dividend The amount of dividends paid out to the shareholders in the form of cash or additional shares. Return of Capital This figure is all, or a portion of, the distribution income as a return of capital (tax-deferred) payment. This distribution income can have its taxes postponed until a later date. Foreign Income This is income gained outside Canada. Style Map Equity Style Box Morningstar's Equity Style Box is a nine-square grid that reflects your portfolio's management style and the size of the companies in which it invests. Each square of the grid has a number that represents the percentage of securities in the portfolio that is allocated to the applicable style and company size. Combining these two variables offers a broad view of a portfolio's holdings and risk. The Equity style box comprises two components: market capitalization on the vertical axis which is divided into three size categories--small, Mid and Large. Large-cap stocks are those that together account for the top 70% of the capitalization of each style zone; mid-cap stocks represent the next 20%; and small-cap stocks represent the balance. The market caps that correspond to these breakpoints are flexible and may shift from month to month as the market changes. The second component is valuation on the horizontal axis, which is divided into three categories-- Value, Blend and Growth. Each component of the matrix then represents a combination of these two components. The nine possible values are: Small-Cap Value, Small-Cap Blend, Small-Cap Growth, Mid-Cap Value, Mid-Cap Blend, Mid-Cap Growth, Large-Cap Value, Large-Cap Blend and Large-Cap Growth. Generally, a growth-oriented portfolio will mostly contain companies that its portfolio manager believes have the potential to increase earnings faster than the rest of the market. A value orientation, on the other hand, focuses on stocks that the manager thinks are currently undervalued at the time of purchase and believes will eventually see their worth recognized in the market.

4 A blend portfolio will mix the two philosophies: the portfolio may contain growth stocks and value stocks, or it may contain stocks that exhibit both characteristics. Because size and style are not absolute measures, Morningstar defines these characteristics for stocks relative to each stock's regional peer group. Equities are first divided into seven regions based on their country of domicile: Canada, United States, Latin America, Greater Europe, Australia/New Zealand, Japan, and Asia ex-japan. A stock's style is determined relative to all the other stocks in its region that share its size or cap band. The model treats value and growth as distinct concepts. As such, they are estimated using separate fundamental factors, five for value and five for growth. Fixed Income Style Box The model for the fixed income style box is based on the two pillars of fixed-income performance: interest rate sensitivity and credit quality. Interest rate sensitivity, as measured by effective duration, gives some indication of how the value of the bonds will react to increases or decreases in interest rates. The three interest sensitivity groups are limited, moderate and extensive. Credit quality gives an indication of the likelihood that the issuers of the bonds will default on the payment of coupons or the repayment of the principal of the bonds, and the possibility of added volatility in the value of the bonds due to the likelihood of default. The three credit quality groups are high, medium and low Horizontal Axis: Interest Rate Sensitivity) The horizontal axis focuses on interest rate sensitivity. The interest rate sensitivity of the portfolio s bonds is assessed using duration. Duration measures the price sensitivity of a fixed-income security to an interest rate change of 1%, or 100 basis points. Effective duration is used to take into consideration all mortgage prepayments, puts and adjustable coupons, and to take into account that expected cash flows will fluctuate as interest rates change. Bonds with an effective duration of less than 3.5 years are assigned to the low interest rate sensitivity sections of the style box; those with an effective duration of greater or equal to 6 years to the high interest rate sensitivity sections; and the remainder to the intermediate areas. Limited: <= 3.5 years Moderate: > 3.5 and <= 6 years Extensive: > 6 years Vertical Axis: Credit Quality The vertical axis focuses on credit quality, and is divided, from top to bottom, into high, medium and low. Credit quality assignments are based on bond ratings provided by Standard & Poor s. Bonds for which a rating has not been provided by S&P are not classified in the style box. Bonds with a rating of AAA or AA are assigned to the high quality sections of the style box; those with A or BBB ratings to the medium quality sections, and those with ratings of below BBB to the low quality sections. Each section of the matrix then represents a combination of these two components. The nine possible values are: high quality-low sensitivity, high quality-medium sensitivity, high quality-high sensitivity, medium quality-low sensitivity, medium quality-medium sensitivity, medium quality-high sensitivity, low quality-low sensitivity, low quality-medium sensitivity, and low quality-high sensitivity. Morningstar Style Box: Ownership Zone The ownership zone provides more detail by showing the range of stock sizes and styles represented in the portfolio. Because investment styles often have different levels of risk and return, it is crucial that investors have a tool to measure their style exposure and construct truly diversified

5 portfolios. The ownership zone is derived by plotting each stock in the portfolio within the style box. Morningstar often uses a five-by-five box grid for the ownership zone to illustrate the full range of stock sizes (from giant-cap to micro-cap) and styles (from deep value to high growth). The blue centroid in the middle of the ownership zone represents the weighted average of all the holdings. The shaded area represents 75% of the assets in the portfolio and indicates the level of concentration in the holdings. A fund that is concentrated will have a small ownership zone relative to the area of the style box, and a broadly diversified fund will have an ownership zone that stretches across many sizes and styles. Investors can use the ownership zone to differentiate between funds in the same Morningstar Category or to model how multiple funds complement each other in a portfolio. Avg Eff Duration Average effective duration is a measure of a portfolio s interest-rate sensitivity - the longer a fund's duration, the more sensitive the portfolio is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while shorter maturities and higher coupons shorten duration. Avg Eff Maturity - Average effective maturity is a weighted average of all the maturities of the bonds in a portfolio, computed by weighting each bond s effective maturity by the market value of the security. Avg Credit Quality - Average credit quality gives a snapshot of the portfolio's overall credit quality. It is an average of each bond's credit rating, adjusted for its relative weighting in the portfolio. Asset Allocation The pie chart displays the division of investments among different kinds of asset categories, such as cash, stocks, bonds, real estate and other, to optimize the risk/reward trade-off based on an individual's or institutions specific situation and goals. Minimum Investments Initial The smallest investment amount accepted for establishing a new account. Additional The minimum amount required to deposit into an existing account. Closed to All Investors Mutual funds that do not accept investments from new investors and existing investors. Closed to New Investors Mutual funds that do not accept investments from those who are not already existing investors in those particular funds. While these funds are closed to new investors, they may allow existing investors to add to their holdings.

6 PERFORMANCE TAB Trailing Total Returns All references to total return represent a fund's gains over a specified period of time. Total return includes both income (in the form of dividends or interest payments) and capital gains or losses (the increase or decrease in the value of a security). Morningstar calculates total return by taking the change in a fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV. Unless marked as load-adjusted total returns, Morningstar does not adjust total return for sales charges or for redemption fees. (Morningstar Return, Morningstar Risk-Adjusted Ratings, and the load-adjusted returns do incorporate those fees.) Total returns do account for management and administrative fees and other costs automatically deducted from fund assets. Quarterly & Monthly Returns Quarterly returns break out a fund's performance over successive quarters of the calendar year. This can be useful in examining how volatile a fund has been over fairly short time periods.

7 PORTFOLIO TAB Style Details Equity Style Summary Avg Market Cap CAD - The average market capitalization of a fund's equity portfolio gives you a measure of the size of the companies in which the fund invests. Market capitalization is calculated by multiplying the number of a company's shares outstanding by its price per share. At Morningstar we calculate this figure by taking the geometric mean of the market capitalizations of the stocks a fund owns. Benchmark Market Cap CAD The benchmark is used as a comparison against which you can compare the returns. Comparing against a benchmark allows you to accurately gauge the actual performance of your portfolio. Value & Growth Measures Price/Prospective Earnings The prospective earnings yield for a fund is the assetweighted average of the prospective earnings yields of all the domestic stocks in the fund's portfolio as of the date of the portfolio. It is calculated by dividing the company's estimated earnings per share for the current fiscal year by the company's month-end share price as of the portfolio date. Price/Book - The book value yield for a fund is the asset-weighted average of the prospective book value yields of all the domestic stocks in the fund's portfolio as of the date of the portfolio. It is calculated by dividing the company's estimated shareholders' equity per share for the current fiscal year by the company's month-end stock price as of the portfolio date. Price/Sales The sales yield for a fund is the asset-weighted average of the prospective sales yields of all the domestic stocks in the fund's portfolio as of the date of the portfolio. It is calculated by dividing the estimated sales per share for the current fiscal year by the company's month-end stock price as of the portfolio date. Price/Cash Flow - The cash flow yield for a fund is the asset-weighted average of the prospective cash flow yields of all the domestic stocks in the fund's portfolio as of the date of the portfolio. It is calculated by dividing estimated cash flow per share for operations for the current fiscal year by the company's month-end stock price as of the portfolio date. Dividend Yield % - The dividend yield for a fund is the asset-weighted average of the prospective dividend yields of all the domestic stocks in the fund's portfolio as of the date of the portfolio. A stock's prospective dividend yield is calculated by dividing estimated annual regular dividends per share for the current fiscal year by the company's monthend stock price as of the portfolio date. Long-Term Earnings % - The long-term prospective earnings growth rate for a fund is the asset-weighted average of the long-term prospective earnings growth rates of all the domestic stocks in the fund's portfolio as of the date of the portfolio. A third-party stock data vendor provides long-term prospective earnings growth rates for stocks.

8 Historical Earnings % - The historical earnings growth rate for a fund measures the share-weighted cumulative earnings growth for all domestic stocks in the fund's current portfolio. This is more accurate than (and not necessarily the same as) the assetweighted average EPS growth for the individual stocks in the fund's current portfolio. Sales Growth % - This measures the share-weighted cumulative revenue growth for all domestic stocks in the fund's current portfolio; this is more accurate than (and not necessarily the same as) the asset-weighted average revenue growth for the individual stocks in the fund's current portfolio. Cash-Flow Growth % - This measures the growth of the share-weighted cumulative cash flow per share for all domestic stocks in the fund's current portfolio; this is more accurate than (and not necessarily the same as) the asset-weighted average cash flow growth for individual stocks in the fund's portfolio. Book-Value Growth % - This datapoint measures the share-weighted cumulative book value growth for all domestic stocks in the fund's current portfolio. This is more accurate than (and not necessarily the same as) the asset-weighted average book value growth for the individual stocks in the fund's current portfolio. Investment Style History (Morningstar Style Box) The Morningstar Style Box is a nine-square grid that provides a graphical representation of the investment style of stocks and funds. For stocks and stock funds, it classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis). Fixedincome funds are classified according to credit quality (the vertical axis) and sensitivity to changes in interest rates (the horizontal axis). Fixed Income Style Summary Style Summary The data focus on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality. Morningstar splits fixed-income funds into three duration groups (Limited, <3.5 years; Moderate, >3.5 to 6 years; and Extensive, > 6 years) and three credit-quality groups (High, AAA or AA; Medium, A or BBB; and Low, BB and below). These groupings display a portfolio s effective duration and credit quality to provide an overall representation of the fund s risk, given the length and quality of bonds in its portfolio. As with equity funds, nine possible combinations exist, ranging from short duration/high quality for the safest funds to long duration/low quality for the riskiest. Bond Statistics Average Effective Duration: A measure of a fund's interest-rate sensitivity the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. The relationship between funds with different durations is straightforward: A fund with duration of 10 years is twice as volatile as a fund with five-year duration. Morningstar prints an average effective duration statistic that incorporates call, put, and prepayment possibilities. Average Effective Maturity: Average effective maturity takes into consideration all mortgage prepayments, puts, calls, and adjustable coupons, and other features of individual bonds. The number listed is a weighted average of all the maturities of the bonds in the portfolio, computed by weighing each maturity date (the date the security comes due) by the market value of the security.

9 Average Credit Quality: An average of each bond s credit rating, adjusted for its relative weighting in the portfolio. Average Weighted Coupon: This figure is calculated by weighting each bond's coupon by its relative size in the portfolio. This figure indicates whether the underlying fund owns more high- or low-coupon bonds. Average Weighted Price: Credit Quality A bond's credit quality gives an indication of the likelihood that the issuers of the bond will default on the payment of coupons or the repayment of the principal of the bond, and the possibility of added volatility in the bond's value due to the likelihood of default. Credit quality assignments in the Morningstar Fixed Income Style Box are based on bond ratings provided by Standard & Poor s. Bonds for which a rating has not been provided by S&P are not classified in the style box. Bonds with a rating of AAA or AA are assigned to the high quality sections of the style box; those with A or BBB ratings to the medium quality sections, and those with ratings of below BBB to the low quality sections. World Regions Country Breakdown The structure of Morningstar s regions is a single unified scheme with some countries at its base. These countries are classified into geographic regions. The regions are then folded into three super geographic regions of the Americas, Greater Europe and Greater Asia. They are based on the following three criteria: Common economic/currency denominator Sufficient population of publicly traded equities Logistics and geography These super regions alongside Morningstar s new Economic Spheres are meant to provide quick, easy to understand and unified portfolio construction and asset allocation tool. Morningstar Super Regions The Americas: This super region includes North America (the U.S. and Canada) and Emerging Central & Latin America. Within this super region, we include the following regions: North America: the U.S. and Canada Emerging Central & Latin America: Mexico and all of Central and South America Greater Europe: This super region includes the United Kingdom, continental Europe (Western and Eastern Europe, Russia) and Africa. Within this super region, we include the following regions: United Kingdom Western Europe: Europe ex U.K.; Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain Emerging Europe: Russia and other Eastern European countries Africa Greater Asia: This super region includes the Middle East and all other Asian countries In addition to stand alone countries, or sub-regions such as Japan and Australasia (Australia and New Zealand). Within this super region, we include the following regions:

10 Japan Australasia: Australia and New Zealand Emerging 4 Tigers: Hong Kong, Singapore, South Korea, Taiwan Emerging Asia: Asia ex 4 Tigers; Near East, Middle East, Far East

11 TAX ANALYSIS TAB Tax Analysis Pre-tax Return - The pre-tax return is simply the average annual compound (annualized) rate of return the fund has earned before accounting for any taxes. It assumes re-investment of any dividend or interest income, but does not reflect the taxes owed on those distributions. It can be calculated for virtually any period, but is typically reported for the one-, three-, five- and 10-year periods. Morningstar shows the pre-tax return in its tax analysis simply for convenient comparison to tax-adjusted returns. Tax-adjusted Return - An investor that holds a fund outside a tax-sheltered account such as an RRSP must pay tax on any interest income, dividend or capital gain distributions from the fund. Tax-adjusted return is the portion of a fund s pre-tax return that a hypothetical taxable investor was able to keep after paying taxes on the fund s distributions. The methodology assumes that taxes are paid out of the distributions and that the amounts remaining are reinvested into the fund at the prevailing price (the fund s NAVPS). This is a preliquidation calculation; it assumes that the investor retains his/her position in the fund at the end of the reporting period. In other words, the tax-adjusted return indicates the return an investor received after paying taxes on the fund s distributions, but without paying taxes on any capital gain the investor might have received due to price appreciation of the fund since the time of purchase. Tax-adjusted return is calculated using the top marginal tax rates that were in effect at the time of each distribution. Morningstar uses the highest marginal tax rates paid by any Canadian in any province or territory at any point in time for each type of distribution. That is, for each time period and for each type of distribution (interest income, dividends and capital gains), the tax rate that is applied is the maximum of the various top marginal tax rates from the different jurisdictions. For instance, in 2003, Newfoundland s top marginal tax rates on each of interest, dividends and capital gains were higher than for any other province or territory. On the other hand, in 1998, B.C. had the maximum top marginal tax rate on both interest income and capital gains, while Quebec had the highest rate on dividends. The use of top marginal tax rates means a fund s tax-adjusted returns, together with its pre-tax returns, should form a bounded range in which investors true returns will fall. Investors in taxsheltered accounts will receive the pre-tax return, while those in taxable accounts will receive an after-tax return that depends on the jurisdiction and tax bracket in which they pay tax, but this amount should be no lower than the funds reported tax-adjusted return. Tax Cost Ratio - The Morningstar Tax Cost Ratio measures how much a fund's annualized return is reduced by the taxes investors pay on distributions. Mutual funds regularly distribute stock dividends, bond dividends and capital gains to their shareholders. Investors then must pay taxes on those distributions during the year they were received. Like an expense ratio, the tax cost ratio is a measure of how one factor can negatively impact performance. Also like an expense ratio, it is usually concentrated in the range of 0-5%. 0% indicates that the fund had no taxable distributions and 5% indicates that the fund was less tax efficient. For example, if a fund had a 2% tax cost ratio for the three-year time period, it means that on average each year, investors in that fund lost 2% of their assets to taxes. If the fund had a threeyear annualized pre-tax return of 10%, an investor in the fund took home about 8% on an after-tax basis. (Because the returns are compounded, the after-tax return is actually 7.8 %.)

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13 RATINGS & RISK TAB Morningstar Risk & Rating Statistics Morningstar Return - is a measure of a fund s annualized historical excess return (excess is measured relative to a risk-free investment in Canadian government treasury bills) adjusted for the fund s historical risk. Morningstar Risk - is measured as the difference between a fund s three, five or ten year annualized return, unadjusted for risk, and its MRAR for the same period. Morningstar Rating - The Morningstar Risk-Adjusted Rating, commonly referred to as the Star Rating, relates the risk-adjusted performance of a fund to that of its category peers. Morningstar calculates ratings only for categories with at least five funds. To determine a fund s rating, the fund and its peers are ranked by their Morningstar Risk-Adjusted Returns. If a fund scores in the top 10% of its fund category, it receives five stars (High); if it falls in the next 22.5%, it receives four stars (Above Average); a place in the middle 35% earns a fund three stars (Neutral or Average); those in the next 22.5% receive two stars (Below Average); and the lowest 10% get one star (Low). Morningstar also accounts for instances where a fund is sold in multiple versions (corporate class, trust, F-class, etc.) In order to prevent one fund from unfairly taking up many places in a portion of the ratings scale, Morningstar treats multiple versions of a fund as "fractional funds". The multiple versions of a fund are all rated, but they collectively count as one and so leave more room for other deserving funds. Also, Morningstar calculates Star Ratings within separate universes for mutual funds and segregated funds. This enables investors to make more relevant comparisons within the two groups of funds. Segregated funds include an insurance component, which adds to their costs. That translates into higher management expense ratios, which reduce investment returns. The overall Star Rating for a fund is a weighted combination of its three, five, and 10 year ratings. If a fund has less than three years performance history, it is not rated. If it has at least three but less than five years history, its overall rating is equal to its three-year rating. If it has at least five but less than 10 years history, its overall rating is equal to 60% five-year rating and 40% three-year rating. If it has at least 10 years history, its overall rating is equal to 50% 10-year rating, 30% five-year rating and 20% three-year rating. Morningstar Risk-Adjusted Ratings are recalculated monthly. MPT Statistics (Modern Portfolio Theory) vs. Best-fit Index An R-squared of 100 means that all movements of a fund are completely explained by movements in the index. In this instance, the benchmark index is the best-fit index. To obtain the best-fit index, Morningstar regresses the fund's monthly excess returns against monthly excess returns of several well-known market indexes. Best fit signifies the index that provides the highest R-squared. R-Squared R-Squared is the measure of correlation between a fund and the market (benchmark). It is calculated by regressing the fund against an appropriate index over time. Values range between 0 and 1. The higher the value of R-Square, the greater the correlation between the two. R-Squared is calculated over the last three-, five-, 10- and 15-year periods. Canadian Equity fund R-Squared is typically calculated relative to members of the S&P/TSX Composite family of

14 indexes, Canadian Bond fund R-Squared is typically calculated relative to the BofAML Canada Broad Market TR, and US Equity fund R-Squared is typically calculated relative to the S&P 500 index. An R-squared of 1 means that all movements of a fund are completely explained by movements in the index. Thus, index funds that invest only in S&P/TSX Composite Index stocks will have an R- squared very close to 1. Conversely, a low R-squared indicates that very few of the fund's movements are explained by movements in its benchmark index. An R-squared measure of 0.35, for example, means that only 35% of the fund's movements can be explained by movements in its benchmark index. Therefore, R-squared can be used to ascertain the significance of a particular beta or alpha. Generally, a higher R-squared will indicate a more useful beta figure. If the R- squared is lower, then the beta is less relevant to the fund's performance. Beta - Beta is a measure of fund performance volatility (risk relative to a market index) over time. It is also referred to as the measure of the "systematic market risk". Beta uses regression analysis to compare the historical price volatility of a security relative to an appropriate benchmark. The actual mathematical formula of beta can be expressed as: Beta = (Covariance between an investment and the market) / (variance of the market) One of the most practical ways investors use beta is to determine how volatile a stock or mutual fund is relative to the broader market or an otherwise appropriate benchmark. A beta of 1.0 indicates that a stock has been equally volatile as its benchmark. A beta of 1.25 means it has been 25% more volatile than the market, whereas a beta of 0.75 means it's been 25% less volatile. Betas are calculated by Morningstar over the last three-, five-, 10- and 15-year periods. Canadian Equity fund betas are typically calculated relative to members of the S&P/TSX Composite family of indexes, Canadian Bond fund betas are typically calculated relative to the ML Canada Broad Market, and U.S. Equity fund betas are typically calculated relative to the S&P 500 index. Alpha - measures the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates a fund has underperformed, given the expectations established by the fund's beta. Some investors see alpha as a measurement of the value added or subtracted by a fund's manager. Treynor - The Treynor measure is very similar to the Sharpe ratio except that rather than using standard deviation as the denominator in the equation, Treynor substitutes beta, thereby introducing volatility relative to an index rather than just looking at the volatility of the fund. Treynor is therefore more appropriate for a portfolio that is quite diversified relative to the market within which it operates. The formula for the Treynor measure is the fund s annualized average monthly excess return divided by its beta, over the last n years. Note: n is three, five, 10 or 15 years. Volatilty Measures Standard Deviation - Standard Deviation is an annualized statistical measure of the dispersion of a fund's or portfolio's performance around its average. When a fund has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility and potentially higher risk. It is calculated based on a fund's or portfolio's monthly returns, and is reported over periods of three, five or ten years. By definition, approximately 67% of the time, the total returns of any given fund are expected to differ from its mean total return by no more than plus or minus the standard deviation figure. Ninety-five percent of the time, a fund's total returns should be within a range of plus or minus two times the standard deviation from its mean. These ranges assume that a fund's returns fall in a typical bell-shaped distribution.

15 In any case, the greater the standard deviation, the greater the fund's volatility. For example, an investor can compare two funds with the same average annualized return of 5% over the last threeyear period, but with different standard deviations. The first fund has an annualized three-year standard deviation of 2.0, which means that its range of annualized returns for the past three-year period has typically remained between 1% and 9%. On the other hand, assume that the second fund has a standard deviation of 4.0 for the same period. This higher standard deviation indicates that this fund has experienced annualized returns fluctuating between minus 3% and 13%. The second fund has experienced greater volatility, and an investor might consider it more likely to also do so in the future. Mean - The mean represents the annualized average monthly return from which the standard deviation is calculated. The mean will not be exactly the same as the annualized trailing, three-year return figure for the same year. (Technically, the mean is an annualized arithmetic average while the total return figure is an annualized geometric average.) Sharpe Ratio - The Sharpe ratio is a risk-adjusted measure developed by Nobel Laureate William F. Sharpe. It is calculated using standard deviation and excess return to determine reward per unit of risk. First, the average monthly return of the 91-day Treasury bill (over a 36-month period) is subtracted from the fund's average monthly return. The difference in total return represents the fund's excess return beyond that of the 91-day Treasury bill, a risk-free investment. An arithmetic annualized excess return is then calculated by multiplying this monthly return by 12. To show a relationship between excess return and risk, this number is then divided by the standard deviation of the fund's annualized excess returns. The higher the Sharpe ratio, the better the fund's historical risk-adjusted performance. Sortino Ratio - The Sortino ratio, a variation of the Sharpe ratio, differentiates harmful volatility from volatility in general by using a value for downside deviation. The Sortino ratio is the excess return over the risk-free rate divided by the downside semi-variance, and so it measures the return to "bad" volatility. (Volatility caused by negative returns is considered bad or undesirable by an investor, while volatility caused by positive returns is good or acceptable.) In this way, the Sortino ratio can help an investor assess risk in a better manner than simply looking at excess returns to total volatility, as such a measure does not consider how often returns are positive as opposed to how often they're negative. Bear Market Percentile Rank - This statistic enables investors to gauge a fund's performance during a bear market. As a standard measure, Morningstar compares all equity funds against the S&P 500 index and all fixed-income funds against the BofAML Canada Broad Market Index. We add together a fund's performance during each bear-market month over the past five years to reach a cumulative bear-market return. Based on these returns, equity funds are compared with other equity funds and bond funds are compared with other bond funds. They are then assigned a percentile ranking where the 10% of funds with the worst performance receive a ranking of 10, and the 10% of funds with the best performance receive a ranking of 1. Because Morningstar employs the trailing five-year time period for this statistic, only funds with five years of history are given a bear-market percentile ranking.

16 EXPENSE TAB The table in this section shows the fund's net annual report expense ratios for each of the past five years as well as the average expense ratio for its Morningstar category and for the median fund within its fee-level comparison group. Fund share classes are first grouped together in comparison groups according to similar investment styles or asset classes. Fund share classes are first grouped together in comparison groups according to similar investment styles or asset classes as noted in the bulleted points below. Comparison groups are further determined according to one of the following five profiles to allow for an apples-to-apples comparison of fund share classes with similar distribution channels and expense structures: Deferred Load Front Load No Load (You can find a fund's comparison group for the fee level statistic right above the table.) The bar chart provides a visual depiction of the trend in a fund's expenses as well as how they compare with expenses of funds that invest in a similar manner.