Private Asset Management

Canadian Equity and Income Funds

Sceptre Income & Growth Fund

Investment Objective

The objective of the Sceptre Income & Growth Fund is to achieve, over the long term, the highest possible return that is consistent with a fundamental investment philosophy. Emphasizing broad diversification across all major security classes, the Fund invests in Canadian and foreign equities as well as fixed income securities.

Investment Strategy

The Fund employs an asset mix strategy as well as individual security selection in both equity and fixed income components to achieve the highest possible return at a moderate level of risk.

Asset mix decisions reflect the return outlook for the various asset classes under expected economic and market conditions.

The equity component is managed utilizing a globally integrated approach. In depth stock and industry analysis is conducted by a team of investment professionals and is supplemented with quantitative value/growth and financial quality screens to monitor a large universe of companies world-wide. Our team includes individuals with specific sector expertise which facilitates original in-house research and an ability to integrate Canadian and foreign holdings. We invest in high quality companies with valuations and growth profiles that compare favourably on a world-wide basis.

Along with stock selection, equity portfolio construction is extremely important. We consider each security based on its own investment merits as well as its potential effect on the overall risk/reward profile of the Fund. Economic factors, industry exposures and geography are carefully considered and reviewed in constructing the portfolio. Weightings are a reflection of our bottom-up stock selection process and our portfolio risk analysis.

The objective of the fixed income component is to provide safety of capital and high current income primarily through investment in Canadian income securities. These may include short and long term debt securities issued or guaranteed by Federal, Provincial and Municipal governments, as well as those issued by Canadian companies. Investments in foreign income producing securities may also be made to allowable limits.

We employ a three pronged strategy to enhance value. We invest in Canadian corporate and municipal bonds to obtain higher yields, government securities to adjust the overall bond mix and duration call, and global bonds for foreign currency and rate exposure.

Allocation between the various sectors, as well as security selection, is influenced by various factors including: interest rate movements, inflation, economic developments and credit/quality ratings.

Class O Returns for the Period ended: June 30, 2010¹

	1 Mth. %	3 Mth. %	Year to Date %	1 Yr. %	3 Yrs.² %	5 Yrs.² %	10 Yrs.² %	Since Inception² %
Income & Growth Fund	-1.9	-4.0	-2.3	6.8	-1.5	4.1	N/A	4.6
Benchmark*	-1.3	-2.9	-1.1	7.7	-0.9	4.0	N/A	5.0

Class O Returns for the One Year Periods ended: June 30

	2010 %	2009 %	2008 %	2007 %	2006 %
Income & Growth Fund	6.8	-13.1	3.0	15.3	10.7
Benchmark*	7.7	-11.8	2.4	14.6	9.0

* Benchmark (5% -91day T-Bills, 35% SC Bond Universe, 40% S&P/TSX Composite, 20% MSCI World)

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.