Front Street Capital

Fund Managers

Eric Dzuba
Prakash Hariharan

Front Street Yield Opportunities Fund

This income yielding Fund is designed to manage risk in the income trust market, achieving better risk-adjusted returns by utilizing sophisticated investment methods including long/short investments, pairs trading, and other arbitrage strategies, as available.

The Fund seeks to generate 5% income per annum (payable quarterly) while achieving positive absolute rates of return, investing in a diversified portfolio of income trust units and other securities including equities, bonds and other financial instruments. The Fund is an eligible investment for Canadian residents and may be purchased in registered plans.

RRSP-eligible, and provides “Switchability” with other FS Opportunity Funds.

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Target Investor

Canadian Investors
RRSP

Asset Class

Long/Short Income Fund

Assets Under Management (AUM)

(CDN Millions) $44.5

Inception Date

05.2005

Minimum Initial Investment

$5,000

Investment Sector

Income
NAVs*

Value Added Monthly Index (VAMI) Since Inception

Returns 07.31.08*
1 month 6 months Year-to-Date CAGR
1 year
-1.7% 3.1% -0.5% 5.8% -4.6%

Sector Allocation

as at 06/30/08

Top Ten Holdings

as at 03/31/08; listed alphabetically

AGRIUM INC
BAYTEX ENERGY
DISCOVER FINL SVCS
FAIRFAX FINL HOLDNGS
HOLLOWAY LODG REIT
NEW BRUNSWICK PROV
PEMBINA PIPEL INCOME
POST PPTYS INC
TIMBERWEST FOREST
WHITEHORSE CDO

* Performance and NAV information provided is unaudited, and net of all fees and expenses.