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Overview

Overview. Unique closed-end alternative Broad-based global equity fund Value-oriented, dividend growth strategy Currency hedging Investment objectives Maximize long-term capital appreciation Monthly distributions initially targeted to be 5% per annum based on $10.00 issue price

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Overview

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  1. Overview • Unique closed-end alternative • Broad-based global equity fund • Value-oriented, dividend growth strategy • Currency hedging • Investment objectives • Maximize long-term capital appreciation • Monthly distributions initially targeted to be 5% per annum based on $10.00 issue price • Leading investment manager • Goodman & Company: David Fingold, David Taylor • Manager of Dynamic Funds • more than $20 billion AUM • awarded “Analysts’ Choice Fund Company of the Year”

  2. Investment highlights • High quality portfolio • Focused on undervalued, dividend-paying companies • Average market cap of indicative portfolio U$70 Bn • Access to global equity market • Greater number of investment opportunities • Enhanced geographic and sector diversification • Effective risk control mechanisms • Focus on large-cap companies • Actively-managed foreign currency exposure

  3. Exchange option • Diversified alternative to holding individual stocks with full 2.8% commission and 40 bps trailer • 5% initial payout comparable to/greater than individual bank or utility stock dividends • Eligible issuers include S&P/TSX Equity 60 Index names • Deadline: 5:00 p.m. EST, May 25, 2006

  4. Investment strategy • Conservative value-oriented investment approach • Strict fundamentals-based, bottom-up analysis • Capitalize on global market opportunities • Target companies with the ability to increase dividends • Foreign currency hedging at all times • At least 80% initially • minimum 50% at all times Value-based, global investment strategy

  5. Value-oriented approach • Fundamentally sound companies trading at a discount to intrinsic value • Undervalued assets • Unrecognized growth potential • Attractive long-term potential but reporting disappointing short-term results • Negative media coverage • Out-of-favour sectors or countries Targeting undervalued, high quality companies

  6. Fundamental bottom-up analysis • Rigorous in-depth research • Preliminary screens to identify attractive businesses • General evaluation of specific industry and its competitive environment • Thorough financial statement analysis • Detailed assessment of management team • Discounted cash flow valuation Disciplined, bottom-up analytical approach

  7. Proven track record • Strong performance of open-end funds with similar mandate • Dividend growth funds • Utilize foreign content

  8. An example: BMW AG • Following years of investment-intensive modernizing of factories BMW is now in a position to increase its dividend: • Significant cash position • Growing their business • Improving product mix Source: Bloomberg

  9. An example: Sandvik • Production and technology leader in cemented carbide tools, underground mining equipment and corrosion resistant seamless tube • “Razor and blades” business model - consumables form significant component of revenues • Growing business with stable business model • History of consistently returning capital to shareholders Source: Bloomberg

  10. Benefits of global investing • Canada represents just 3% of the global equity market US MSCIEAFE Canada Increased range of investment opportunities

  11. Benefits of global investing • Low correlation of Canadian and world markets • Broader sector diversification • Enhances investors’ risk/return profile

  12. Benefits of a dividend-paying equities • Key indicator of a company’s health • Help to reduce volatility and provide downside protection in weak markets • Historically outperformed non-dividend paying stocks

  13. Benefits of a dividend growth strategy • Dividend payers outperformed non-dividend paying stocks Outperformance of S&P 500 dividend paying stocks CAGRs 11.5% 10.8% 2.9% Dividend growers outperform by a wider margin Source: Ned Davis Research Inc.

  14. diversiGlobal Dividend Value Fund High quality, diversified, global portfolio

  15. diversiGlobal Dividend Value Fund Indicative portfolio by region Geographically diversified

  16. diversiGlobal Dividend Value Fund Indicative portfolio by Sector Broad mix of industry sectors

  17. Terms of the offering Price: $10.00 per Unit Minimum purchase: $1,000 (100 Units) Target yield: 5.00% per annum, paid monthly Loan facility: up to 25% of total assets Termination of the fund: June 30, 2016 Eligibility: RRSPs, RRIFs, RESPs, DPSPs Liquidity features: Annual redemption at NAV, TSX listing; market purchase program Management fee: 1.10% of NAV per annum Timing: Sizing late May; closing mid-June, expected Selling concession: 2.80% per Unit Trailer fee: 0.40% per annum of NAV, payable quarterly

  18. Summary • High quality, global portfolio • Value-based investment approach • Proven track record - Goodman & Company • Stable monthly distributions (5% initially) • Foreign currency hedging • Exchange option for S&P/TSX 60 stocks

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