Jov Leon Frazer Dividend Fund

ABOUT LEON FRAZER & ASSOCIATES

• Over a half century of Navigating Volatile Markets – Established in 1939

• Oldest Independent Investment Manager in Ontario • Second Oldest in Canada

– Offices in Toronto and Vancouver– $1.5 Billion under Management

• Value style

• Investment strategy focused on stocks with history and prospects of increasing and paying out dividends. – Dividend Increases drive growth in Capital & Income– Provides style diversification to traditional other equity holdings– Protects capital in volatile markets

JOV LEON FRAZER DIVIDEND FUND

• Achieve long-term total returns consisting of regular dividend income and modest long-term capital growth

• Fund invests primarily in common shares and equity securities of major North American companies with above average dividend yields

• Benchmark: S&P/TSX Total Return Index• Inception: April 2007• Capacity $2-$4B

JOV LEON FRAZER DIVIDEND FUND

SUMMARY OF INVESTMENT PROCESS

ESSENTIAL THEMES

Volatility occurs in all asset classes, even Money Market funds

• Shift from accumulating wealth to payout of wealth• Need for income as investors move away from full-time

employment• “Protect what I have” mentality• Looking for solutions, not products

ALL RISKS ARE NOT OBVIOUS

• Market Value Risk priced everyday– Inflation Risk is priced in cost of gas at the pump, food prices

and vacation travel– Taxes erode income from salaries and investments

• Key is to protect after-tax, after-inflation buying power

LONG-TERM EFFECTS OF INFLATION

IMPACT OF INFLATION ON HOUSEHOLD PRICES

Sources: www.1960sflashback.com; www.zfacts.com; www.today.com; www.econmagic.com; www.akdart.com/postrate.html.All figures are in US prices.

GUARANTEED INVESTMENT CERTIFICATES (GICs)

• Protect capital value• Fully taxed as earned income rate• Illiquid• Fixed rate investment• Assuming 50% tax rate and 5% inflation rate: 6% GIC = -

1.6% real return

DIVIDEND-FOCUSED STRATEGY BOOSTS RETURNS

• Dividends can provide a consistent source of income, especially to aging investors

• High quality, dividend-paying companies offer tax-advantaged income, growth potential and diversification

BENEFITS OF DIVIDEND INVESTING

Income and Capital Appreciation:• During the 80 year period ending 2006, an impressive 40% of

stocks’ total return came from dividends*• Stocks with rising dividends have easily outperformed the market

over the past 10 years**• Dividend income is taxed at lower rate than wage and interest

income• Dividends provide cash flow for reinvestment

*Source: Goldman Sachs U.S. Portfolio Strategy, September 25, 2006**Source: George Vasic, UBS Investment Research Report, August 2006

DIVIDENDS CONTRIBUTE TO GROWTH

Increasing dividends contribute to growth in a company’s stock price*

FUND IS IDEAL FOR:

• Clients who want to protect their capital from inflation

• Clients who desire monthly tax-efficient distributions

• Clients who are looking to access institutional style money managers

• Clients who are looking for a growth type vehicle to add to their portfolio

FUND DETAILS

Portfolio Sub-Advisor: Leon Frazer & Associates

Fund Code: JOV105JOV 205 (DSC)JOV 305 (F Class)

Minimum Investment: $1,000Minimum Subsequent: $500Minimum Pre-Authorized Payment: $50Minimum Automatic Withdrawal Plan: $50Currency: CADDistributions: MonthlyCommissions: Up to 5%Management Fee: 2%Trailer: 1% (0.50% on DSC)

DISCLAIMER

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rate(s) of return is (are) the historical annual compounded total return(s) including changes in (share or unit) value and reinvestment of all (dividends or distributions) and does (do) not take into account sales, redemptions, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

APPENDIX

DSC SCHEDULE

• 5.00% sales commission on the amount invested

• 50bps trailer paid quarterly

• Each year the investor is allowed to redeem up to 10% of the number of units they held on December 31 of the previous year without being charged the early redemption fee

• The 10% free redemption rate will be reduced by the distribution rate of the fund during the previous calendar year

Redeems During:

Client Pays:

Year 1 5.5%

Year 2 5.5%

Year 3 5.0%

Year 4 4.5%

Year 5 4.0%

Year 6 3.0%

Year 7 2.0%

Thereafter 0%