The investment objective is to achieve income and long-term capital growth. The manager achieves this by investing primarily in a diversified portfolio of convertible debentures and preferred shares issued by companies located around the world. These financial instruments are convertible into equity instruments on predetermined conditions. The companies may be chosen from within any industry sector and may be of all capitalization. The manager assesses the financial parameters of a company and evaluates its management capabilities. In addition, the manager reviews the company's role in its industry, as well as the economic state of the industry itself. The manager also assesses general economic factors including monetary and credit market conditions and the yield curve.

Asset manager:
Michael McHugh (Started: Jul 18, 2006)

Advisor Company:
GCIC Ltd.

	1 year	3 years	5 years	10 years
Alpha*	1.97	-	-	-
Beta*	0.60	-	-	-
Mean annual return	0.28	-	-	-
R-squared*	85.00	-	-	-
Standard deviation	1.77	-	-	-
Sharpe ratio	1.35	-	-	-
* Against standard index

Security	Net Assets
Dynamic High Yield Bond	9.65%
Canada Govt 1.5%	4.44%
Hydro Que Medium Term Nts	2.64%
Ontario Prov Cda 4%	2.28%
Province Of Ontario 3.15%	2.24%
Markit Credit Derivatives Index North America Investment Grade 19 Swap, Dec	2.12%
Markit Credit Derivatives Index North America Investment Grade 19 Swap, Dec	2.11%
Markit Credit Derivatives Index North America Investment Grade 19 Swap, Dec	2.05%
Markit Credit Derivatives Index North America Investment Grade 19 Swap, Dec	2.04%
Canada Govt 4.25%	2.01%