Leadership in Alternative Asset Management

Leadership in Alternative Asset Management Second Quarter Report, March 31, 2006

REPORT TO SHAREHOLDERS ( IAM or the Corporation ) is pleased to present to shareholders the financial results of the Corporation for the second quarter of fiscal 2006. Assets under management and committed capital ("AUM") remained unchanged at March 31, 2006 from year end (September 30, 2005) at $2.9 billion. No significant new assets were raised during the quarter however AUM are up approximately $0.2 billion since March 31, 2005. The Corporation's financial position at March 31, 2006 remained strong with $15.2 million in cash and $1.8 million in debt. Revenues for the three months ended March 31, 2006 were $9.0 million compared with $4.9 million in the same period of fiscal 2005. Included in the revenues are performance fees of $3.6 million compared with $0.1 million for the three months ended March 31, 2005. During the quarter, $3.2 million in performance fees were realized in respect of the value added to a 350,000 square foot, 10 storey building in central Toronto, which has been managed by Greiner-Pacaud/Hamilton Inc. for 8 years. The remaining $0.4 million of performance fees realized in the quarter were generated by the Hedge Funds operations of BluMont Capital. Core management fees increased from $4.7 million in the first quarter of fiscal 2005 to $5.0 million in the first quarter of fiscal 2006 due to increased activity at both the Asset Management and Hedge Funds operations of the Corporation. At BluMont, management fees increased approximately $0.1 million and at the Asset Management operations, management fees increased approximately $0.2 million. The Asset Management operations reported operating income of $0.6 million for the three months ended March 31, 2006 versus breakeven results in the comparable period of fiscal 2005. Without the net performance fees, the Asset Management operations would have reported an operating loss for the three-month period ended March 31, 2006 of $0.3 million. This operating loss is due to increased marketing expenses in two divisions and also no closing fees during the quarter in the private debt division. This is a matter of timing as approximately $65 million has already been deployed in the third quarter to date with committed closing fees received. The Hedge Funds operations reported an operating loss of $0.2 million for the three months ended March 31, 2006 versus an operating loss of $0.4 million in the comparable period of fiscal 2005, an improvement due to increased AUM. Two BluMont Man products were marketed during the quarter. The first, a prospectus based product, the BluMont Man Alternative Yield Fund closed in March raising $21.9 million. The second, the BluMont Man-IP 220 Series 3 Notes, closed on April 6, 2006 raising $52.3 million. BluMont intends to build on these successes and, with Man Investments, is considering launching a new note. In addition, BluMont has plans to offer a prospectus based hedge fund managed by some of the leading hedge fund managers in Canada. The Asset Management group's focus is on the deployment of committed capital in private debt and real estate and to the marketing of new funds in private equity. A semi-annual cash dividend of $0.025 per common share was paid to shareholders of record on January 17, 2006. We are pleased to announce that the Board of Directors has approved an increase in the annual dividend from $0.05 per common share to $0.07 per common share payable in cash semi-annually ($0.035 per common share). A cash dividend of $0.035 per common share will be made in late June. We thank you for your continued support.

MANAGEMENT'S DISCUSSION AND ANALYSIS This section provides management s discussion and analysis ("MD&A") of the financial condition of IAM as at March 31, 2006 compared with September 30, 2005, and the results of operations for the three months ended March 31, 2006 compared with the corresponding period in fiscal 2005. This MD&A should be read in conjunction with the MD&A in IAM s first quarter fiscal 2006 report and the 2005 Annual Report. This MD&A is prepared as of April 30, 2006. These reports and other filings by IAM are on SEDAR at www.sedar.com. IAM reports on two business segments: Asset Management and Hedge Funds. Hedge Funds comprise the operations of BluMont Capital Inc. ( BluMont ) in which IAM has a 46.1% ownership. BluMont is a TSX Venture Exchange listed company and information on BluMont, additional to that shown herein, can be accessed on SEDAR. This MD&A may contain forward-looking statements on the Corporation's business, strategies, opportunities and future financial results. These statements are not promises or guarantees and are based on assumptions and estimates which are subject to many different risks and uncertainties, any of which could cause actual results to be significantly different from those derived from the forward-looking statements. The reader should not place undue reliance on any such forward-looking statements, which are presented as of April 30, 2006. BUSINESS REVIEW IAM is an alternative asset investment management company offering high quality alternative asset class management to institutional, pension and private clients. The Corporation had assets under management, including committed capital ("AUM") of approximately $2.9 billion at March 31, 2006 which are represented by two business segments, Asset Management which had AUM of approximately $2.1 billion and Hedge Funds with approximately $0.8 billion in AUM. Asset Management Asset Management comprises our real estate investment management, private corporate debt, managed futures and private equity operations with an institutional and high net worth client base. The Corporation's products are mostly pools of assets managed by the Corporation for investors and the life of each pool of assets can range up to twelve years. Typically, the Corporation develops and structures each investment product and then markets for commitments over a number of years. For some types of pools, the Corporation receives fees only when the committed capital is deployed and assets are being managed whereas on other pools the Corporation receives fees on the committed capital. Generally, there is little or no liquidity for the investors during the term of a pool and the pool can be liquidated earlier than scheduled only in exceptional circumstances. Hedge Funds Hedge Funds comprise the retail hedge fund activities under BluMont in which IAM has a 46.1% ownership. BluMont provides hedge fund products to Canadian retail investors by its sales force distributing these products throughout Canada using an extensive financial advisor distribution network. BluMont's hedge fund products can be categorized between those products for which BluMont's investment management team manages all or some of the fund's AUM ("manufacturer") and those hedge fund products where the investment management team does not manage any of the fund's AUM ("distributor"). Manufactured AUM typically generate net fees to BluMont which are higher (as a percentage of AUM) than those that are generated when BluMont's role is principally that of distributor.

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) ASSETS UNDER MANAGEMENT, INCLUDING COMMITTED CAPITAL ("AUM") March 31, September 30, March 31, ($ millions) 2006 2005 2005 Asset Management $ 2,148.3 $ 2,088.2 $ 2,152.4 Hedge Funds 784.0 784.3 666.5 Total $ 2,932.3 $ 2,872.5 $ 2,818.9 AUM at March 31, 2006 remained relatively unchanged since September 30, 2005. BluMont had a net gain in AUM of approximately $32.6 million in the quarter including the closing of one BluMont Man product. A second BluMont Man product closed on April 6 raising $52.3 million which is not reflected in the table above. Included in AUM is approximately $0.7 billion of committed capital ($0.8 billion as at September 30, 2005) on which the Corporation does not currently earn revenue, but will do so provided this committed capital is deployed. RESULTS OF OPERATIONS Revenues were $8,951,991 for the three-month period ended March 31, 2006 compared with $4,944,971 in the same period of fiscal 2005 due to both higher management fees and performance fees realized in the latest quarter. There was an increase in management fees to $5,040,757 from $4,669,283 reported in the three months ended March 31, 2005. Performance fees were $3,550,150 in the quarter, of which $3.2 million were fees in respect of the value added from a 350,000 square foot, 10 storey building in central Toronto, which has been managed by Greiner- Pacaud/Hamilton Inc. for 8 years. The balance of performance fees realized in the quarter were generated by the Hedge Funds operations at BluMont.

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Selected financial information Three-Month Period Six-Month Period Ended March 31, Ended March 31, 2006 2005 2006 2005 Revenues $ 8,951,991 $ 4,944,971 $ 20,697,716 $ 13,774,232 Performance fees, included in revenues above $ 3,550,150 $ 99,783 $ 10,248,352 $ 4,471,534 Net performance fees (1) $ 1,002,637 $ 37,833 $ 4,147,730 $ 1,881,447 Operating income (loss) (Note 7) (2) Asset Management $ 596,402 $ (12,154) $ 935,633 $ (16,386) Hedge Funds (180,268) (433,017) 1,591,409 1,083,161 416,134 (445,171) 2,527,042 1,066,775 Stock-based compensation (53,011) (211,705) (98,777) (305,058) Income (loss) before income taxes $ 363,123 $ (656,876) $ 2,428,265 $ 761,717 Net income (loss) $ 244,823 $ (259,910) $ 883,744 $ 264,160 Basic and diluted earnings (loss) per share $0.01 $(0.01) $0.04 $0.01 (1) Net performance fees are calculated as performance fees revenue less investment adviser, service fees and expenses paid relating to performance fees revenue earned. (2) Operating income is a non-gaap financial measure used by the Corporation. This measure is income before income taxes and the deduction of stock-based compensation which is further described in Note 3 of the interim consolidated financial statements. Performance fees are a very important part of the Corporation's revenues. Performance fees of the Asset Management operations are not realized on a regular basis as they are recognized generally towards the end of the life of the pool of assets being managed. Performance fees at the Hedge Funds operations are generally recognized on an annual or semi-annual basis (on June 30 and on December 31) and quarters ending December 31 typically have the highest level of performance fees. The impact on operating income of performance fees depends on the amount of the expenses associated with them. For the Asset Management operations, the net performance fees in the quarter approximated only $0.9 million as the management compensation in Greiner-Pacaud/Hamilton Inc. for the specific long-term project was set in 1998 expressly to provide a significant upside for management while keeping ongoing compensation low. Excluding the net performance fees, the Asset Management operations reported an operating loss of approximately $0.3 million. Marketing expenses were higher in the quarter as a number of new funds were being actively marketed. In addition, there were no closing and associated closing fees revenue in the private debt division during the quarter which affected profitability.

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) The Hedge Funds operations reported an operating loss of $180,268 in the three months ended March 31, 2006 as BluMont continued to operate at a loss (before reflecting net performance fees) on a day to day basis. These losses were lower than in the comparable quarter of fiscal 2005 as AUM have increased. Selling, general and administration expenses increased from $4,452,075 in the three months ended March 31, 2005 to $5,215,651 in the three months ended March 31, 2006. Compensation costs and the ongoing marketing of new private equity and managed futures funds contributed to the increase. Future income taxes increased to $145,953 for the three months ended March 31, 2006 from an income tax recovery of $200,618 in the quarter ending March 31, 2005 reflecting the increase in operating income in the current quarter. It is likely that the future tax liability on the Corporation's balance sheet of $1,255,544 will become a cash obligation of the Corporation payable on or before November 30, 2006. Over the past quarter, the financial outlook and the risks and uncertainties faced by the Corporation are similar to those described in the 2005 Annual Report updated by the comments in the MD&A of the first quarter of fiscal 2006.

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) CONSOLIDATED FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES Consolidated assets were $29.5 million compared with $30.2 million at September 30, 2005. Shareholders equity increased from $13.2 million at September 30, 2005 to $13.7 million at March 31, 2006. The Corporation s net working capital (excluding future income taxes) increased to $12.9 million at March 31, 2006 from $9.4 million at September 30, 2005 primarily as a result of the net performance fees of approximately $4.1 million realized in the first six months of fiscal 2006. In December 2004, BluMont arranged an advance payment of $1.0 million from Man Investments against future fees receivable by BluMont. This prepayment of fees is repayable to Man Investments over the next three years through a reduction of the quarterly fees payable to BluMont by Man Investments. At March 31, 2006, BluMont recorded a loan due to Man Investments of $572,702 as shown in Note 5 of the financial statements. As part of the amended and restated agreement between BluMont and Man Investments effective January 2006, BluMont has agreed to transfer to Man Investments the management contract relating to the BluMont Man Multi-Strategy Fund, which had AUM of approximately $18.9 million as at March 31, 2006. In return, Man Investments has agreed to relinquish its rights to amounts due to it after January 31, 2006 in respect of the advance payment of fees. This transaction is subject to receipt by Man Investments of all necessary regulatory approvals and certain other conditions. OUTSTANDING SHARE DATA (as at April 30, 2006) Common shares Issued and outstanding 21,624,366 Stock options 1,517,000 (1) Notes: (1) Stock options to acquire 1,517,000 common shares at prices ranging from $1.00 to $2.00 per common share. Notes 3 and 6 of the financial statements provide additional information on Outstanding Share Data.

Consolidated Balance Sheets March 31 September 30 2006 2005 (Unaudited) (Audited) Assets Current Cash and cash equivalents $ 15,233,878 $ 14,668,356 Receivables 4,405,975 3,374,332 Prepaids 422,931 475,796 Future income taxes 337,521 159,165 20,400,305 18,677,649 Capital assets 630,320 716,863 Deferred sales commissions 2,096,459 2,366,045 Goodwill 2,194,717 2,194,717 Investments in funds managed by the Corporation 2,204,500 2,500,250 Other assets (Note 4) 1,329,372 2,386,688 Future income taxes 648,573 1,374,810 $ 29,504,246 $ 30,217,022 Liabilities Current Payables and accruals $ 6,435,624 $ 6,788,067 Deferred revenue 369,275 50,000 Current portion of capital lease obligations 14,810 21,707 Current portion of long-term debt (Note 5) 339,675 333,091 Income taxes payable 2,027 1,894,353 Future income taxes 1,255,544 924,974 8,416,955 10,012,192 Capital lease obligations 18,315 24,102 Long-term debt (Note 5) 1,454,274 1,551,254 9,889,544 11,587,548 Non-controlling interest 5,964,374 5,431,809 Shareholders' Equity Capital stock (Note 6) 8,975,862 8,940,862 Contributed surplus (Note 6) 598,578 524,925 Retained earnings 4,075,888 3,731,878 13,650,328 13,197,665 $ 29,504,246 $ 30,217,022 See accompanying notes to the consolidated financial statements.

Consolidated Statements of Operations and Retained Earnings (Unaudited) 3 Months 6 Months For the period ended March 31 2006 2005 2006 2005 Revenues Management fees, administration and redemption fees $ 5,040,757 $ 4,669,283 $ 9,796,547 $ 9,003,073 Performance fees 3,550,150 99,783 10,248,352 4,471,534 Interest and other income 361,084 175,905 652,817 299,625 8,951,991 4,944,971 20,697,716 13,774,232 Expenses Selling, general and administration 5,215,651 4,452,075 9,330,197 8,376,112 Stock-based compensation (Note 3) 53,011 211,705 98,777 305,058 Investment adviser fees 180,068 220,526 377,860 470,952 Service fees paid to dealers 311,190 333,030 728,213 648,549 Investment adviser, service fees and expenses paid relating to performance fees revenue earned 2,547,513 61,950 6,100,622 2,590,087 Depreciation of capital assets 60,994 62,967 121,635 124,025 Amortization of deferred sales commissions 162,843 146,778 319,838 289,575 Amortization of management contract establishment expenses (Note 4) - 47,027 1,075,455 78,553 Interest expense 57,598 65,789 116,854 129,604 8,588,868 5,601,847 18,269,451 13,012,515 Income (loss) before income taxes and minority interest (Note 7) 363,123 (656,876) 2,428,265 761,717 Income taxes (recovery) Current (1,823) 2,187 44,679 2,334 Future 145,953 (200,618) 878,452 220,087 144,130 (198,431) 923,131 222,421 Income (loss) before minority interest 218,993 (458,445) 1,505,134 539,296 Minority interest share of loss (income) 25,830 198,535 (621,390) (275,136) Net income (loss) $ 244,823 $ (259,910) $ 883,744 $ 264,160 Basic and diluted earnings (loss) per share $ 0.01 $ (0.01) $ 0.04 $ 0.01 Weighted average number of shares outstanding 21,612,699 21,331,866 21,601,033 21,215,616 Retained earnings, beginning of period $ 3,831,065 $ 1,124,057 $ 3,731,878 $ 852,293 Adoption of new accounting standard (Note 3) - - - (252,306) Net income (loss) 244,823 (259,910) 883,744 264,160 Dividends declared (Note 8) - - (539,734) - Retained earnings, end of period $ 4,075,888 $ 864,147 $ 4,075,888 $ 864,147 See accompanying notes to the consolidated financial statements.

Consolidated Statements of Cash Flows (Unaudited) 3 Months 6 Months For the period ended March 31 2006 2005 2006 2005 Increase (decrease) in cash and cash equivalents Operating activities Net income (loss) $ 244,823 $ (259,910) $ 883,744 $ 264,160 Add (subtract) non-cash items: Stock-based compensation (Note 3) 53,011 211,705 98,777 305,058 Depreciation of capital assets 60,994 62,967 121,635 124,025 Amortization of deferred sales commissions 162,843 146,778 319,838 289,575 Amortization of management contract establishment expenses (Note 4) - 47,027 1,075,455 78,553 Future income tax expense (recovery) 145,953 (200,618) 878,452 220,087 Minority interest share of income (loss) (25,830) (198,535) 621,390 275,136 Other 9,683 17,309 38,304 55,770 651,477 (173,277) 4,037,595 1,612,364 Net change in non-cash working capital balances relating to operations 6,313,625 1,216,225 (2,904,273) (804,322) Cash provided by operating activities 6,965,102 1,042,948 1,133,322 808,042 Financing activities Issuance of common shares on exercise of stock options 35,000 534,750 35,000 534,750 Issuance of common shares of subsidiaries, net of issue costs 20,250 68,280 20,250 68,280 Issuance of long-term debt - - - 1,000,000 Repayment of long-term debt (27,594) (157,086) (109,413) (157,086) Dividends paid to shareholders (539,734) - (539,734) - Distributions paid to minority interests (124,867) - (124,867) - Repayment of capital lease obligations (5,364) (11,531) (12,684) (22,384) Repayment of management loans 12,929 10,227 76,889 26,116 Repayment of notes payable - (103,011) - (139,916) Cash provided by (used in) financing activities (629,380) 341,629 (654,559) 1,309,760 Investing activities Payment of sales commissions - (169,635) (50,254) (326,306) Investment in funds managed by the Corporation - (161,722) - (161,722) Distributions from funds managed by the Corporation 295,750-295,750 - Payment of management contract establishment expenses - (356,515) - (954,879) Purchase of capital assets (17,526) (118,205) (36,547) (152,830) Purchase of other assets (122,190) - (122,190) - Mutual fund future income stream - 35,005-173,597 Cash provided by (used in) investing activities 156,034 (771,072) 86,759 (1,422,140) Increase in cash and cash equivalents 6,491,756 613,505 565,522 695,662 Cash and cash equivalents, beginning of period 8,742,122 3,342,278 14,668,356 3,260,121 Cash and cash equivalents, end of period $ 15,233,878 $ 3,955,783 $ 15,233,878 $ 3,955,783 See accompanying notes to the consolidated financial statements.

March 31, 2006 Notes to the Consolidated Financial Statements (Unaudited) 1. Organization (the "Corporation" or "IAM") was incorporated under the laws of Ontario and its common shares are listed on the TSX Venture Exchange. The Corporation's principal business is alternative asset investment management. 2. Basis of Presentation The unaudited consolidated financial statements of the Corporation have been prepared by management in accordance with Canadian generally accepted accounting principles. These financial statements have not been reviewed by the Corporation's external auditors. The accounting policies used in the preparation of these unaudited interim consolidated financial statements conform with those presented in Note 2 to the Corporation's September 30, 2005 audited annual consolidated financial statements. These interim consolidated financial statements do not include all of the disclosures included in the annual audited consolidated financial statements and accordingly should be read in conjunction with the annual audited consolidated financial statements. 3. Stock-Based Compensation and Other Stock-Based Payments The Corporation has established an incentive stock option plan for the executives, key employees, directors and consultants to the Corporation. As at March 31, 2006 and April 30, 2006, there were 1,517,000 common shares (September 30, 2005-1,472,000 common shares) reserved for issuance on exercise of stock options. Prior to fiscal year 2005, the Corporation did not recognize any compensation cost for its stock option plan in the consolidated statements of operations and retained earnings. Beginning in fiscal 2005, the Corporation recognized compensation costs for its stock option plan in respect of awards granted on or after October 1, 2002 on a retroactive basis without restatement of prior periods. The stock-based compensation cost in respect of fiscal years 2003 and 2004 totalled $252,306 and has been reflected as a prior period adjustment in fiscal 2005 reducing retained earnings and as a corresponding increase in contributed surplus.

March 31, 2006 Notes to the Consolidated Financial Statements (Unaudited) 3. Stock-Based Compensation and Other Stock-Based Payments - (continued) These options expire in 2006 through 2011 and may be exercised at prices ranging from $1.00 to $2.00 per common share with a total exercisable value of $1,627,000 (September 30, 2005 - $1,502,000). Number of Number of Exercise Expiry Options Options Vested Price Date 405,000 405,000 $ 1.00 2007 80,000 80,000 $ 1.00 2008 752,000 501,333 $ 1.00 2010 80,000 26,667 $ 2.00 2011 200,000 200,000 $ 1.15 2006 1,517,000 1,213,000 The changes in the stock options are as follows: Number Of Options Weighted Average Exercise Price Balance, September 30, 2005 1,472,000 $ 1.02 Granted 80,000 2.00 Exercised (35,000) 1.00 Balance, March 31, 2006 and April 30, 2006 1,517,000 $ 1.07 4. Other Assets March 31 September 30 2006 2005 (Unaudited) (Audited) Management contract establishment expenses (a) $ - $ 1,075,455 Management loans 503,882 580,771 Other 825,490 730,462 $ 1,329,372 $ 2,386,688 (a) For financial statement presentation under Canadian generally accepted accounting principles, the amortization of this asset was accelerated beginning in the fourth quarter of fiscal 2005, such that the asset was fully amortized as at December 31, 2005.

March 31, 2006 Notes to the Consolidated Financial Statements (Unaudited) 5. Long-term Debt March 31 September 30 2006 2005 (Unaudited) (Audited) Convertible debenture, in subsidiary company (a) $ 1,221,247 $ 1,202,230 Man Investments payments (b) 572,702 682,115 1,793,949 1,884,345 Less: amount due within one year included in current liabilities (339,675) (333,091) $ 1,454,274 $ 1,551,254 (a) (b) The convertible debenture of $1,300,000 matures on December 31, 2007 and in accordance with Canadian generally accepted accounting principles, BluMont has classified the convertible debenture into its respective debt and equity components on BluMont's financial statements. For the purposes of these consolidated financial statements, the equity component is included in minority interest of the Corporation. Unless the convertible debenture is converted into common shares of BluMont or principal payments are made, the debt component will increase in future periods to an amount of $1,300,000 as at December 31, 2007. During the quarter ended December 31, 2004, BluMont received a payment of $1,000,000 in respect of an advance of future fees from Man Investments Inc. ("Man Investments"), a company with which BluMont has a strategic relationship. The amount of $1,000,000 is repayable in equal quarterly amounts of principal and interest over three years out of future fees payable by Man Investments to BluMont and is unsecured. The effective interest rate on the advance is 4.7%. Effective January 31, 2006, BluMont and Man Investments agreed to change the repayment terms of the outstanding amount owing as at January 31, 2006 subject to certain conditions. BluMont has agreed to transfer to Man Investments the management contract of the BluMont Man Multi-Strategy Fund (the "Fund") subject to certain conditions applicable to Man Investments being met. On these conditions being met, the management contract of the Fund will be transferred to Man Investments and BluMont will receive consideration from Man Investments by its relinquishing its rights to the amounts due to it as at January 31, 2006 which approximate $573,000. If these conditions are not met by December 31, 2006, the management contract of the Fund will not be transferred and the terms and conditions applicable to the Man Investments payments will revert back to those in effect prior to January 31, 2006 and will be applied retroactively to that date. These financial statements show the amount outstanding at January 31, 2006 as long-term debt, however no interest expense has been accrued for the period subsequent to January 31, 2006.

March 31, 2006 Notes to the Consolidated Financial Statements (Unaudited) 6. Share Capital and Contributed Surplus Authorized: The Corporation is authorized to issue an unlimited number of common shares. Issued: Share Capital Number of Contributed Common Shares Amount Surplus Balance, September 30, 2005 21,589,366 $ 8,940,862 $ 524,925 Issuance of common shares on exercise of incentive stock options 35,000 35,000 - Stock-based compensation (a) - - 73,653 Balance, March 31, 2006 and April 30, 2006 21,624,366 $ 8,975,862 $ 598,578 (a) The amount of $73,653 credited to Contributed Surplus represents the stock-based compensation expense of $98,777 for stock options granted by both the Corporation and BluMont as shown on the consolidated statement of operations, less an amount of $25,124 representing the minority interest portion of BluMont's stock compensation expense.

March 31, 2006 Notes to the Consolidated Financial Statements (Unaudited) 7. Segmented Information The following table discloses information about the Corporation's reportable segments: Three months Asset Hedge ended March 31, 2006 Management Funds Eliminations Total Segment operating income (loss) $ 596,402 $ (180,268) $ - $ 416,134 Stock-based compensation (Note 3) 26,574 26,437-53,011 Income (loss) before income taxes $ 569,828 $ (206,705) $ - $ 363,123 Revenue $ 6,384,639 $ 2,668,405 $ (101,053) $ 8,951,991 Interest and other income 207,397 153,687-361,084 Interest expense 6,431 51,167-57,598 Amortization and depreciation 34,819 189,018-223,837 Assets 19,253,521 11,658,301 (1,407,576) 29,504,246 Three months ended March 31, 2005 Segment operating loss $ (12,154) $ (433,017) $ - $ (445,171) Stock-based compensation (Note 3) 91,213 120,492-211,705 Loss before income taxes $ (103,367) $ (553,509) $ - $ (656,876) Revenue $ 2,820,848 $ 2,174,123 $ (50,000) $ 4,944,971 Interest and other income 107,069 68,836-175,905 Interest expense 9,304 56,485-65,789 Amortization and depreciation 36,871 219,901-256,772 Assets 11,822,423 10,613,141 (1,375,114) 21,060,450

March 31, 2006 Notes to the Consolidated Financial Statements (Unaudited) 7. Segmented Information - (continued) Six months Asset Hedge ended March 31, 2006 Management Funds Eliminations Total Segment operating income $ 935,633 $ 1,591,409 $ - $ 2,527,042 Stock-based compensation (Note 3) 52,163 46,614-98,777 Income before income taxes $ 883,470 $ 1,544,795 $ - $ 2,428,265 Revenue $ 9,286,968 $ 11,684,372 $ (273,624) $ 20,697,716 Interest and other income 346,048 306,769-652,817 Interest expense 12,324 104,530-116,854 Amortization and depreciation 69,285 1,447,643-1,516,928 Six months ended March 31, 2005 Segment operating income (loss) $ (16,386) $ 1,083,161 $ - $ 1,066,775 Stock-based compensation (Note 3) 91,751 213,307-305,058 Income (loss) before income taxes $ (108,137) $ 869,854 $ - $ 761,717 Revenue $ 5,307,849 $ 8,566,383 $ (100,000) $ 13,774,232 Interest and other income 182,046 117,579-299,625 Interest expense 16,371 113,233-129,604 Amortization and depreciation 71,833 420,320-492,153 8. Dividend The Corporation paid a regular cash dividend of $0.025 per common share to shareholders of record on January 17, 2006.

March 31, 2006 Board of Directors Victor Koloshuk Chairman, President and Chief Executive Officer, G.E.A. Pacaud Chairman, Greiner-Pacaud Management Associates and Vice Chairman, David Atkins (1) (2) Chairman, Swiss Re Group Companies of Canada (1) (2) George Elliott Chairman, Titanium Corporation George Engman President and Chief Executive Officer, Integrated Partners Veronika Hirsch Chief Investment Officer, BluMont Capital Corporation Stephen Johnson (3) Chief Financial Officer, Michel LeBel (1) (2) (4) Chairman and President, EBITD Financial Advisory Corporation Donald Lowe (1) (2) Corporate Director David Mather Executive Vice President, John Robertson President and Chief Executive Officer, Integrated Private Debt Corp. (1) Member of the Audit Committee (2) Member of the Compensation and Governance Committee (3) Secretary of the Corporation (4) Lead Director

March 31, 2006 Principal Officers Integrated Asset Greiner-Pacaud Darton Property Advisors & Management Corp. Management Associates Managers Inc. Victor Koloshuk David Warkentin Gary Hudson Chairman, President and Vice President, Investments President Chief Executive Officer Robert Burns Steven Harris G.E.A. Pacaud Chief Financial Officer Senior Vice President Vice Chairman Frank Bartello Siobhan Kenny Stephen Johnson Director, Acquisitions Vice President, Leasing Chief Financial Officer David Becket Susan Russell David Mather Director, Asset and Vice President, Finance Executive Vice President Property Management Michael Staresinic Greiner-Pacaud/ Hamilton BluMont Capital Corporate Controller Management Inc. Thomas Simpson Robert Hamilton Chairman Quebec Representative President Joseph Benarrosh Stephen Kangas Directeur, Quebec Integrated Private Debt Corp. President John Robertson Integrated Partners President and Chief Executive Officer Veronika Hirsch Victor Koloshuk Chief Investment Officer Chairman Ben Bacigalupi Managing Director Stephen Johnson George Engman Chief Financial Officer President and Chief Donald Bangay Executive Officer Managing Director Pierre Novak Managing Director Stephen Johnson Frank Duffy Senior Vice President Managing Director David Scobie Managing Director James Ridout Michael LeClair Vice President Managing Director Integrated Managed Futures Corp. Greiner-Pacaud Philip Robson Stephen Johnson Management Associates Managing Director Chairman G.E.A. Pacaud Chairman Douglas Zinkiewich Roland Austrup Managing Director President and Chief Brent Chapman Executive Officer President David Mather Rick Zagrodny Vice President Senior Vice President Asset Management

March 31, 2006 Corporate Information Auditors: Grant Thornton LLP Transfer Agent: CIBC Mellon Trust Company Stock Listing: TSX Venture Exchange - "IAM" Corporate Headquarters: 130 Adelaide Street West Suite 2200 Toronto, Ontario Canada M5H 3P5 Phone: (416) 360.7667 Fax: (416) 360.7446 www.iamgroup.ca Subsidiary websites: www.gpma.ca www.dartonproperty.com www.blumontcapital.com www.imfc.ca BluMont Capital Inc. is a TSX Venture Exchange listed company ("BCC") and financial information regarding the company is available through SEDAR (www.sedar.com) or by contacting: BluMont Capital Corporation 220 Bay Street Suite 1500, P.O. Box 23 Toronto, Ontario Canada M5J 2W4 Phone (416) 216.3566 Fax: (416) 216.3559 Toll-Free: (866) 473.7376