The primary objective of the Independence Canadian Income Growth Portfolio is to produce above-average after-tax income

Portfolio Objective

• Produce income after tax and after fees of 6% to 7% over a 3-5 year period.
• Approximately half the return will come from dividend and interest and the other half from after-tax capital gains.

Portfolio Composition

• 0% - 40% bond and closed-end income trusts.
• 20% - 80% Canadian dividend-paying stocks chosen from Nick Majendie's 60 blue chip company universe.
• 0% - 30% Reverse Participation Notes
• Maximum cash position of 50%

Portfolio Management

• The portfolio will be managed using a carefully controlled strategy that allows the pre-tax compounding of capital gains.
• The manager will seek to have over half of the stock portion of the portfolio in companies with decent prospects for dividend growth.
• The manager makes the assumption that capital gains will accrue in proportion to the underlying long-term earnings growth rate of the companies in the portfolio (this will normally be in the 5% - 15% range).

Performance

• The Independence Canadian Income Growth Portfolio has a total return of
  235.5% ** from inception of March 2000 to May 31, 2008. It has outperformed the benchmark by 155.8%