Marret Bond Fund -- summary under Forward Fund to Conventional Fund

Overview

The Manager (Marret Asset Management Inc.) is seeking the approval of unitholders to approve extending the termination date of the Fund by five years to October 31, 2019 (the "Continuation"), and amending the Fund's investment objectives and management fee provisions.

Requirement to change current structure

Currently, exposure of the Fund to the Portfolio (comprised primarily of U.S., Canadian and European investment grade bonds and term loans of an underlying investment fund) is gained through a forward agreement for the sale of shares of TSX-listed public issuers (the "Forward Agreement") which will terminate no later than October 31, 2014. As a result of the character conversion rules introduced on March 21, 2013, the Forward Agreement cannot be extended past its termination date and the investment structure of the Fund must be modified to reflect direct investments in assets comprising the Portfolio (i.e., following the Continuation, the Fund will invest directly in portfolio securities which will include mainly investment grade debt securities and term loan.)

Annual redemption

Units may be surrendered for redemption during the month of May in each year for the duration of the extended term of the Fund…on the last business day of May of such year (the "Redemption Date"). Redeeming unitholders will be entitled to receive a redemption price per unit equal to the net asset value per unit determined as of the Redemption Date, less applicable expenses incurred by the Fund.

Monthly redemption

Units may be redeemed at the option of unitholders on the second last business day of each month (the "Monthly Redemption Date"), other than May for a redemption price equal to the lesser of (A) 94% of the weighted average trading price of the units on the TSX for the 10 trading days immediately preceding the Monthly Redemption Date; and (B) 100% ofthe closing price of units on the TSX on such Monthly Redemption Date.

Canadian Tax Consequences

On or before the Continuation date:

the Fund will dispose of all of its assets that are subject to the Forward Agreement. This will trigger a realization of all accrued capital gains and losses in the Fund. The Fund is expected to realize net capital gains as a result of such dispositions under the Forward Agreement. On or before the date of the Continuation, the Fund will distribute an amount to unitholders that would be sufficient to result in the Fund not being subject to tax if it earned no further income and realized no further capital gains or losses in its taxation year in which the Continuation occurs (taking into account amounts already distributed in 2014, and capital gains refunds that may arise for redemptions that occur in connection with the Continuation). Unitholders will have to include in their income for 2014 the portion of such distribution received by them as is paid from the Fund's net income or net taxable capital gains; and any remaining portion of the distribution will be a return of capital which will not have to be included in income but will reduce the adjusted cost base of the unitholders' units.