INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE. NBI High Yield Bond Private Portfolio. For the period ended June 30, 2017

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1 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the period ended June 0, 07 Fixed Income Private Portfolios Notes on forward-looking statements This report may contain forward-looking statements concerning the Fund, its future performance, its strategies or prospects or about future events or circumstances. Such forward-looking statements include, among others, statements with respect to our beliefs, plans, expectations, estimates and intentions. The use of the expressions "foresee", "intend", "anticipate", "estimate", "assume", "believe" and "expect" and other similar terms and expressions indicate forward-looking statements. By their very nature, forward-looking statements imply the use of assumptions and necessarily involve inherent risks and uncertainties. Consequently, there is a significant risk that the explicit or implicit forecasts contained in these forward-looking statements might not materialize or that they may not prove to be accurate in the future. A number of factors could cause future results, conditions or events to differ materially from the objectives, expectations, estimates or intentions expressed in such forward-looking statements. Such differences might be caused by several factors, including changes in Canadian and worldwide economic and financial conditions (in particular interest and exchange rates and the prices of other financial instruments), market trends, new regulatory provisions, competition, changes in technology and the potential impact of conflicts and other international events. The foregoing list of factors is not exhaustive. Before making any investment decision, investors and others relying on our forward-looking statements should carefully consider the foregoing factors and other factors. We caution readers not to rely unduly on these forward-looking statements. We assume no obligation to update forward-looking statements in the light of new information, future events or other circumstances unless applicable legislation so provides. This interim management report of fund performance contains financial highlights, but does not contain the complete interim financial statements of the investment fund. You can get a copy of the interim financial statements at your request, and at no cost, by calling or , by writing to us at National Bank Investments Advisory Service, 500, Place d Armes, th floor, Montreal, Quebec, HY W, by visiting our website at by visiting SEDAR s website at or by contacting your advisor. You may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure.

2 Management Discussion of Fund Performance Results of Operations For the six-month period ended June 0, 07, the NBI High Yield Bond Private Portfolio s Series N units returned.89% compared to.7% for the Fund s benchmark, the Merrill Lynch High Yield (85% B, 5% C) Monthly Index (CAD hedged). Unlike the benchmark, the Fund s performance is calculated after fees and expenses. Please see the Past Performance section for the returns of all of the Fund s series, which may vary mainly because of fees and expenses. Certain series of the Fund, as applicable, may make distributions at a rate determined by the manager. This rate may change from time to time. If the aggregate amount of distributions in such series exceeds the portion of net income and net realized capital gains allocated to such series, the excess will constitute a return of capital. The manager does not believe that the return of capital distributions made by such series of the Portfolio have a meaningful impact on the Fund s ability to implement its investment strategy or to fulfill its investment objective. The Fund's net asset value rose by % over the period, from $598. million as at December, 06 to $676. million as at June 0, 07. The increase stemmed mainly from unit purchases by investors in the Fund. U.S. high-yield bonds figured among the best performing fixed income assets during the first half of the year after emerging bonds. While all sectors ended the period in positive territory, those related to Health Care, Transportation and Telecommunications contributed the most to the overall performance of this asset class by posting returns hovering around 7-8% (in U.S. dollars). The Energy and Retail sectors for their part, lagged with returns under % (in U.S. dollars). The performance of U.S. high-yield bonds was also propelled by lower quality issuers, as CCC s gained 7% vs..5% and.7% (in U.S. dollars) for B s and BB s. The rebound in risk assets following the surprising U.S. election results in the fourth quarter of 06 persisted relatively unabated into the new year, as optimism over the Trump administration s ability to successfully enact its pro-growth policy objectives continued to buoy stocks around the world. Strong U.S. economic data and the ongoing stability in oil also contributed to the positive backdrop across financial markets over the first portion of the year while the prospect of additional Federal Reserve (Fed) rate hikes weighed on global interest rates. The constructive tone remained largely intact until early March, when a number of high profile catalysts forced investors to pause and reassess their near-to-medium term outlooks, including the first of several important national European elections, a 5 basis points rate hike by the Fed, and the attempted passing of the GOP s Obamacare replacement - the American Health Care Act (AHCA). The first two events proved relatively inconsequential, as a market-friendly, anti-populist result in the Dutch elections helped assuage concerns for a repeat of European-induced volatility this year while the rate hike was basically a foregone conclusion and had already been priced in by the time of the Federal Open Market Committee meeting. However, the failure to pass the AHCA amongst Republicans was decidedly more difficult for investors to accept. This was the first major piece of legislation put forth by President Trump and its failing has significantly increased the skepticism surrounding his other fiscal priorities, namely tax reform and infrastructure spending. The demand for risk assets throughout much of the year s first three months persisted into the second quarter of 07, as optimism over the Trump administration s ability to enact some form of fiscal stimulus continues to buoy stocks around the world. Positive sentiment towards Europe also acted as a tailwind during the period, as the continent s various anti-globalization movements appear to be waning, and local economic data remains strong. A relatively large move lower in oil due to rising output from Libya, Nigeria and Iraq, along with U.S. shale producers, has forced investors to curb their enthusiasm somewhat, but geopolitical tensions surrounding Qatar have thus far kept the commodity from selling off too aggressively. China remains a wildcard too as recent government actions would suggest a desire to tighten credit conditions going forward, which is having a negative impact on their growth outlook. Under these circumstances, the Fund underperformed the benchmark. During the period, performance was most notably impacted by a significant loss within the banking sector. The Fund s Banco Popular Additional Tier ( AT ) position was cancelled when a run on deposits forced regulators to qualify the bank as failing or likely to fail. Holdings within the Capital Goods and Energy sectors also detracted from performance while the Financials and Utilities sectors proved the largest positive contributors. Recent Developments During the period, the portfolio manager pared back several positions whose valuations began to stretch relative to similar securities and made minor adjustments to the Fund s holdings in the Energy sector. The portfolio manager also exhibited an interest in a number of attractive new issues that have performed well and contributed positively to performance. Among some of the Fund s purchases were First Quantum, Gateway Casinos, Intesa San Paolo, Evova International and Parc Aerospace Holdings. In contrast, positions in Tenet Health Care, AMC Entertainment and Calpine Corp were just a few of the names sold. Meanwhile, Oasis Petroleum and Banco Santander were some of the securities that were partially liquidated while Rite and Corp and Viking Cruises were some of the Fund s existing positions that were increased during the period. From a sector perspective, the Fund maintains an overweight position in Financials, Telecommunications and Utilities while upholding an underweight position in Real Estate, Health Care and Energy. Regarding credit quality, the Fund maintains an overweight position in B rated bonds and an underweight position in bonds with ratings inferior to B. Other smaller positions are undertaken in AA and BBB rated bonds. The high yield market is expected to remain volatile in 07, with potential for additional widening of credit spreads in the near-term. This is the case as uncertainty still remains surrounding the pace of Fed monetary policy tightening, U.S. economic outlook and the Trump administration s ability to execute its expansionary fiscal agenda. Related Party Transactions National Bank of Canada ( the Bank ) and its affiliated companies roles and responsibilities related to the Fund are as follows: Trustee National Bank Trust Inc. ("NBT"), a wholly-owned indirect subsidiary of the Bank, is the Fund s trustee. In this capacity, it is the legal owner of the Fund s investments. Custodian and Registrar Natcan Trust Company ("NTC") acts as registrar for the Fund s securities and the names of securityholders. NTC also acts as the Fund s custodian. The fees for NTC s custodial services are based on the standard rates in effect at NTC. Agent for securities lending transactions NTC acts as the agent for securities lending transactions acts on behalf of the Fund in administering securities lending transactions entered into by the Fund. NTC is an affiliate of the Manager.

3 Fund Manager The Fund is managed by National Bank Investments Inc. ( NBII ), which is a wholly-owned subsidiary of the Bank. Therefore, NBII provides or ensures the provision of all general management and administrative services required by the Fund s current operations, including investment consulting, the arrangement of brokerage contracts for the purchase and sale of the investment portfolio, bookkeeping and other administrative services required by the Fund. The Manager pays the operating expenses of the Fund other than its Fund costs (defined below) (the variable operating expenses ), in exchange for the Fund s payment to the Manager of annual fixed-rate administration fees with respect to each series of the Fund. The administration fees are equal to a specified percentage of the net asset value of each series of the Fund, calculated and paid in the same manner as the Fund s management fees. The variable operating expenses payable by the Manager include, but are not limited to: transfer agency and recordkeeping costs; custodial costs; accounting and valuation fees; audit fees and legal fees; costs of preparing and distributing financial reports, simplified prospectuses, annual information forms, Fund Facts, continuous disclosure material and other securityholder communications; and costs of trustee services relating to registered tax plans, as applicable. In addition to administration fees, the Fund shall also pay certain Fund costs, namely: taxes (including, but not limited to, GST/HST and income taxes); costs of compliance with any changes to existing governmental or regulatory requirements introduced after August, 0; costs of compliance with any new governmental or regulatory requirements, including any new fees introduced after August, 0; interest and borrowing costs; costs related to external services that were not commonly charged in the Canadian mutual fund industry as at August, 0; Independent Review Committee costs, including compensation paid to IRC members, travel expenses, insurance premiums and costs associated with their continuing education; and variable operating expenses incurred outside of the normal course of business of the Fund. The Manager may, from time to time and at its sole discretion, decide to absorb a portion of a series management fees, administration fees or Fund costs. As described under the heading Management Fees, the Fund pays annual management fees to NBII as consideration for its services. Distribution and Dealer Compensation NBII acts as principal distributor for the Fund. Trailing commissions are covered by NBI Private Wealth Management s service fees, which are paid directly by investors. Independent Review Committee Approvals and Recommendations The Fund followed the standing instructions of its Independent Review Committee with respect to one or more of the following transactions: a) Purchasing or holding the securities of a related issuer, in particular, those of National Bank of Canada; b) Investing in the securities of an issuer when an entity related to the manager acts as an underwriter for the placement or at any time during the 60-day period after the end of the placement; c) Purchasing or selling securities to another investment Fund managed by the manager or a company in the same group; d) Purchasing or selling debt securities on the secondary market, through related brokers that are main brokers in the Canadian debt securities market (in accordance with an exemption received from the Canadian Securities Administrators); e) Entering into foreign exchange transactions (including both spot transactions and forward transactions) with National Bank of Canada. The Manager has implemented policies and procedures to make sure that the conditions applicable to each of the above transactions are met. The applicable standing instructions require that these transactions be carried out in accordance with NBII policies, which specify, in particular, that investment decisions pertaining to these related party transactions must be made free from any influence by an entity related to NBII and without taking into account any consideration relevant to an entity related to NBII. Furthermore, the investment decisions must represent the business judgment of the securities advisor, uninfluenced by considerations other than the best interest of the Fund and must achieve a fair and reasonable result for the Fund. Registered Plan Trust Services NBT receives a fixed amount per registered account for services provided as trustee for registered plans. Administrative and Operating Services The provision of certain services was delegated by the Fund Manager, NBII, to National Bank Trust Inc. ("NBT"), a wholly-owned indirect subsidiary of the Bank. These include accounting, reporting and portfolio valuation services. The fees incurred for these services are paid to NBT by the Fund manager. Management Fees The Fund pays annual management fees to the Fund manager for its management services. The fees are calculated based on a percentage of the Fund s daily net asset value before applicable taxes and are paid on a monthly basis. The management fees paid by the Fund only cover management of fund investments, i.e. the fees related to management of fund portfolios constituting the profiles of the NBI Private Wealth Management service ("PWM"). General administration services, trailer fees and sale commissions paid to brokers are covered by the PWM s service fees, which are paid directly by investors. The breakdown of major services provided in consideration of the management fees, expressed as an approximate percentage of the management fees is as follows: Series Management Fees Distribution Others Series N and Series NR 0.5% 00.00% ( ) Includes all costs related to management, investment advisory services, general administration and profit. Past Performance The performance of each series of the Fund is presented below and calculated as at December of each year. It assumes that all distributions made in the periods shown were reinvested in additional securities and does not take into account sales, redemption charges, distributions, or optional charges that would have reduced returns. Past performance of a series of a Fund does not necessarily indicate how it will perform in the future.

4 Annual Returns The bar charts indicate the performance for each the Fund's series in existence greater than one year during the years shown, and illustrate how the performance has changed from year to year. They show, in percentage terms, how much an investment made on January (or made commencing from the start of the series) would have grown or decreased by December of that year, or by June 0, as applicable. 0% Series N 0% 5.6 0%.89 0% -0% % Series NR 0% 5.5 0%.97 0% -0% Returns for the period from October 0, 05 (commencement of operations) to December, 05. Returns for the period from January, 07 to June 0, 07.

5 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the accounting periods shown. Series N Net Assets per Unit () Accounting Period Ended June 0 December December (6 days) $ $ $ Net Assets, Beginning of Accounting Period Shown () Increase (Decrease) from Operations Total revenue Total expenses (0.0) (0.0) (0.0) Realized gains (losses) (0.9) Unrealized gains (losses) (0.09) 0. (0.07) Total Increase (Decrease) from Operations () (0.5) Distributions From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual Distributions () Net Assets, End of Accounting Period Shown () This information is derived from the Fund's Annual Audited Financial Statements and Interim Unaudited Financial Statements. The net assets per unit presented in the financial statements might differ from the net asset value calculated for fund pricing purposes. The differences are explained in the notes to the financial statements. Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase or decrease from operations is based on the average number of units outstanding over the accounting period. Distributions were paid in cash or reinvested in additional units of the Fund, or both. The net assets are calculated in accordance with IFRS. Ratios and Supplemental Data Accounting Period Ended June 0 December December (6 days) Total net asset value (000's of $) () 69,7 6,5 7,68 Number of units outstanding (),999,0 0,57,78,5,707 Management expense ratio (%) () Management expense ratio before waivers or absorptions (%) Trading expense ratio (%) () Portfolio turnover rate (%) () Net asset value per unit ($) This information is provided as at the last day of the accounting period shown. Management expense ratio is based on total expenses including sales taxes for the accounting period indicated (excluding commission, other portfolio transaction costs and withholding taxes) and is expressed as an annualized percentage of daily average net value during the accounting period. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the accounting period. The higher a Fund's portfolio turnover rate in an accounting period, the greater the trading costs payable by the Fund in the accounting period, and the greater the chance of an investor receiving taxable capital gains in the accounting period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund.

6 Financial Highlights Series NR Net Assets per Unit () Accounting Period Ended June 0 December December (6 days) $ $ $ Net Assets, Beginning of Accounting Period Shown () Increase (Decrease) from Operations Total revenue Total expenses (0.0) (0.0) (0.0) Realized gains (losses) (0.7) Unrealized gains (losses) (0.08) 0. (0.8) Total Increase (Decrease) from Operations () (0.) Distributions From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual Distributions () Net Assets, End of Accounting Period Shown () This information is derived from the Fund's Annual Audited Financial Statements and Interim Unaudited Financial Statements. The net assets per unit presented in the financial statements might differ from the net asset value calculated for fund pricing purposes. The differences are explained in the notes to the financial statements. Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase or decrease from operations is based on the average number of units outstanding over the accounting period. Distributions were paid in cash or reinvested in additional units of the Fund, or both. The net assets are calculated in accordance with IFRS. Ratios and Supplemental Data Accounting Period Ended June 0 December December (6 days) Total net asset value (000's of $) () 7,587 6,68,795 Number of units outstanding () 7,77 6, 95,68 Management expense ratio (%) () Management expense ratio before waivers or absorptions (%) Trading expense ratio (%) () Portfolio turnover rate (%) () Net asset value per unit ($) This information is provided as at the last day of the accounting period shown. Management expense ratio is based on total expenses including sales taxes for the accounting period indicated (excluding commission, other portfolio transaction costs and withholding taxes) and is expressed as an annualized percentage of daily average net value during the accounting period. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the accounting period. The higher a Fund's portfolio turnover rate in an accounting period, the greater the trading costs payable by the Fund in the accounting period, and the greater the chance of an investor receiving taxable capital gains in the accounting period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund. * The management expense ratio before waivers or absorptions as at December, 05 has been adjusted to reflect a non-material correction related to a programming error in the ratio calculation.

7 Financial Highlights PW Series* *Please note that this Series is offered by way of private placement. Net Assets per Unit () Accounting Period Ended June 0 December December (6 days) $ $ $ Net Assets, Beginning of Accounting Period Shown () Increase (Decrease) from Operations Total revenue Total expenses (0.0) (0.0) (0.0) Realized gains (losses) (0.77) Unrealized gains (losses) (0.05) 0. (0.) Total Increase (Decrease) from Operations () (0.5) Distributions From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual Distributions () Net Assets, End of Accounting Period Shown () This information is derived from the Fund's Annual Audited Financial Statements and Interim Unaudited Financial Statements. The net assets per unit presented in the financial statements might differ from the net asset value calculated for fund pricing purposes. The differences are explained in the notes to the financial statements. Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase or decrease from operations is based on the average number of units outstanding over the accounting period. Distributions were paid in cash or reinvested in additional units of the Fund, or both. The net assets are calculated in accordance with IFRS. Ratios and Supplemental Data Accounting Period Ended June 0 December December (6 days) Total net asset value (000's of $) () 78,777,889 9,9 Number of units outstanding (),,60 5,80,0,,9 Management expense ratio (%) () Management expense ratio before waivers or absorptions (%) Trading expense ratio (%) () Portfolio turnover rate (%) () Net asset value per unit ($) This information is provided as at the last day of the accounting period shown. Management expense ratio is based on total expenses including sales taxes for the accounting period indicated (excluding commission, other portfolio transaction costs and withholding taxes) and is expressed as an annualized percentage of daily average net value during the accounting period. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the accounting period. The higher a Fund's portfolio turnover rate in an accounting period, the greater the trading costs payable by the Fund in the accounting period, and the greater the chance of an investor receiving taxable capital gains in the accounting period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund.

8 Financial Highlights PWO Series* *Please note that this Series is offered by way of private placement. Net Assets per Unit () Accounting Period Ended June 0 December December (6 days) $ $ $ Net Assets, Beginning of Accounting Period Shown () Increase (Decrease) from Operations Total revenue Total expenses (0.0) (0.0) (0.0) Realized gains (losses) (.00) Unrealized gains (losses) (0.08) 0.0 (0.) Total Increase (Decrease) from Operations () 0..8 (0.5) Distributions From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual Distributions () Net Assets, End of Accounting Period Shown () This information is derived from the Fund's Annual Audited Financial Statements and Interim Unaudited Financial Statements. The net assets per unit presented in the financial statements might differ from the net asset value calculated for fund pricing purposes. The differences are explained in the notes to the financial statements. Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase or decrease from operations is based on the average number of units outstanding over the accounting period. Distributions were paid in cash or reinvested in additional units of the Fund, or both. The net assets are calculated in accordance with IFRS. Ratios and Supplemental Data Accounting Period Ended June 0 December December (6 days) Total net asset value (000's of $) (),6,8 5,55 Number of units outstanding () 0,95,8,987,08 6,06,599 Management expense ratio (%) () Management expense ratio before waivers or absorptions (%) Trading expense ratio (%) () Portfolio turnover rate (%) () Net asset value per unit ($) This information is provided as at the last day of the accounting period shown. Management expense ratio is based on total expenses including sales taxes for the accounting period indicated (excluding commission, other portfolio transaction costs and withholding taxes) and is expressed as an annualized percentage of daily average net value during the accounting period. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the accounting period. The higher a Fund's portfolio turnover rate in an accounting period, the greater the trading costs payable by the Fund in the accounting period, and the greater the chance of an investor receiving taxable capital gains in the accounting period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund.

9 Financial Highlights Private Series* *Please note that this Series is offered by way of private placement. Net Assets per Unit () Accounting Period Ended June 0 December (6 days) $ $ Net Assets, Beginning of Accounting Period Shown () Increase (Decrease) from Operations Total revenue Total expenses (0.0) Realized gains (losses) Unrealized gains (losses) (0.08) 0.0 Total Increase (Decrease) from Operations () Distributions From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual Distributions () Net Assets, End of Accounting Period Shown () This information is derived from the Fund's Annual Audited Financial Statements and Interim Unaudited Financial Statements. The net assets per unit presented in the financial statements might differ from the net asset value calculated for fund pricing purposes. The differences are explained in the notes to the financial statements. Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase or decrease from operations is based on the average number of units outstanding over the accounting period. Distributions were paid in cash or reinvested in additional units of the Fund, or both. The net assets are calculated in accordance with IFRS. Ratios and Supplemental Data Accounting Period Ended June 0 December (6 days) Total net asset value (000's of $) () 6, 6,67 Number of units outstanding () 596,78 657,090 Management expense ratio (%) () Management expense ratio before waivers or absorptions (%) Trading expense ratio (%) () Portfolio turnover rate (%) () Net asset value per unit ($) This information is provided as at the last day of the accounting period shown. Management expense ratio is based on total expenses including sales taxes for the accounting period indicated (excluding commission, other portfolio transaction costs and withholding taxes) and is expressed as an annualized percentage of daily average net value during the accounting period. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the accounting period. The higher a Fund's portfolio turnover rate in an accounting period, the greater the trading costs payable by the Fund in the accounting period, and the greater the chance of an investor receiving taxable capital gains in the accounting period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund.

10 Summary of Investment Portfolio As of June 0, 07 Portfolio Top Holdings % of Net Asset Value Cash, Money Market and Other Net Assets 5.6 NBI Money Market Fund, Series O.9 Sprint Nextel Corp., 6.00%, due November 5, 0.7 MGM Resorts International, 7.75%, due March 5, 0.5 T-Mobile US Inc., 6.6%, due April, 0.5 DISH DBS Corp., 5.88%, due July 5, 0. HCA Inc., 5.88%, due March 5, 0. Sprint Corp., 7.6%, due February 5, 05. SLM Corp., 6.%, due March 5, 0. Frontier Communications Corp., 8.75%, due April 5, 0. ishares, iboxx $ High Yield Corporate Bond ETF. Reynolds Group Issuer Inc, 5.75%, due October 5, 00. CCO Holdings Capital Corp., 5.%, due February 5, 0.0 EP Energy LLC / Everest Acquisition Finance Inc., 9.8%, due May, 00.0 Genworth Financial Inc., 7.6%, due September, 0.0 Great Canadian Gaming Corp., 6.6%, due July 5, 0.0 XPO Logistics Inc., 6.50%, due June 5, 0.0 Altice SA, 7.75%, due May 5, Enel SpA, Floating, due September, First Quantum Minerals Ltd., 7.5%, due April, IASIS Healthcare LLC / IASIS Capital Corp., 8.8%, due May 5, Level Financing Inc., 5.%, due May, Prime BRW Finance, 9.5%, due May 5, Viking Cruises Ltd., 8.50%, due October 5, ILFC E-Capital Trust II, Floating, due December, Asset Mix % of Net Asset Value Foreign Bonds 78.8 Corporate Bonds.8 Exchange Traded Funds. Common Shares 0. Cash, Money Market and Other Net Assets 7. Net asset value $676,8,78 The above table shows the top 5 positions held by the Fund. In the case of a Fund with fewer than 5 positions, all positions are indicated. The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the investment Fund. A quarterly update is available. Please consult our Web site at