Private Asset Management

• Private Asset Management Service
• Private Asset Management Team
• Philosophy
• Approach
• Implementation

Canadian Equity and Income Funds

• Sceptre Money Market Fund
• Sceptre Bond Fund
• Sceptre High Income Fund
• Sceptre Income & Growth Fund
• Sceptre Canadian Equity Fund
• Sceptre Large Cap Canadian Equity Fund
• Sceptre Equity Growth Fund

• Foreign Equity Funds
• Private Client Fund Performance
• Market & Fund Commentaries

Sceptre High Income Fund

Investment Objective

The current investment objectives of the Fund are to provide a high level of income along with moderate capital growth by investing in a diversified portfolio of Canadian Royalty and income trusts. The proposed amendments in the investment objectives will increase the scope of the universe of investments to include fixed income securities and high-yielding equities.

These proposed amendments are a result of the announcement on October 31, 2006 by the Federal Government of proposed changes affecting the taxation of income trust distributions. The amendments will broaden the Fund’s investments and are considered necessary to ensure that the Fund can successfully achieve its objectives of providing a high level of income along with moderate capital growth. “We will continue to invest in high quality cashflow rich companies with good valuations”, says Portfolio Manager Matthew Baillie.

Concurrently, with the change in the investment objectives of the Fund, the name of the Fund will also be changed to Sceptre High Income Fund. It is anticipated that the proposed Fund changes will take effect on or about January 30, 2007.

Class O Returns for the Period ended: February 28, 2010¹

	1 Mth. %	3 Mth. %	Year to Date %	1 Yr. %	3 Yrs.2 %	5 Yrs.2 %	10 Yrs.2 %	Since Inception2 %
High Income Fund	2.3	4.4	-0.3	42.4	-1.6	N/A	N/A	2.0
60% S&P/TSX Cap Income Trust & 40% S&P/TSX Composite	5.3	7.0	2.5	58.6	2.6	6.7	12.6	4.4

Class O Returns for the One Year Periods ended: February 28

	2010 %	2009 %	2008 %	2007 %	2006 %
High Income Fund	42.4	-34.4	2.0	9.2	N/A
60% S&P/TSX Cap Income Trust & 40% S&P/TSX Composite	58.6	-36.8	7.9	2.5	25.1

¹ The rates of return are used only to illustrate the effects of the compound growth rate and are not intended to reflect future values of the mutual funds or returns on the investment in the mutual funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing.

² Sceptre Private Asset Management Fund Units are available for institutional and high net worth investors including other funds. Only investors who meet our discretionary account requirements and minimum investment levels will be eligible to purchase these Units.