Investment Approach

Investment objectives for the Preferred Shares

1. To provide their holders with quarterly, fixed cumulative distributions equal to $0.10625 per Preferred Share ($0.425 per year or 4.25% of the Preferred Share offering price); and

2. to repay the original issue price of $10.00 per Preferred Share on redemption of the Preferred Shares on January 31, 2012.

Investment objectives for the Class A Shares

To provide their holders with:

1. tax-efficient regular monthly distributions, expected to be primarily returns of capital;

2. the opportunity for capital appreciation and dividend growth on a leveraged basis; and

3. low management fees.

The holders of Class A Shares will be entitled to all dividends and distributions received on the Portfolio (net of operating expenses and the Preferred Share distributions). On termination, the Class A Shares will be entitled to the value of the Company in excess of the value of the Preferred Shares. Assuming an offering size of $50 million, the Class A Shares would have a yield of approximately 1.81% per annum as at January 16, 2007 based on the Company pursuing its noted investment objectives, the current Portfolio dividend and distribution levels and other assumptions described in the prospectus under ''Description of Share Capital - Certain Provisions of the Class A Shares''. The yield has been calculated on the basis that the Manager and RBC Dominion Securities Inc. (the Leverage Agent) elect to receive their fees in Units.

To the extent necessary to achieve the current estimated distribution of 1.81% per annum as at January 16, 2007 on the Class A Shares, the Manager and the Leverage Agent will elect to receive their fees in Units. The level of distributions paid on the Class A Shares will depend on the dividends and distributions received on the Portfolio Securities and therefore is expected to fluctuate from month to month.

Investment Strategy

The net proceeds of the offering will be invested in the equity securities of the six largest Canadian banks listed below, in the Canadian utilities and pipeline issuers and in the Canadian non-bank financial issuers listed below (the ''Portfolio Securities'').

The information in the following table is based on publicly available information, is historical and is not intended to be, and should not be construed as, an indication of the future levels of market value or yield on the Portfolio Securities.