Investment Mandates Offered

Fixed Income: Rules Based

US Investment Grade Preferred Shares

• Minimum rating investment grade Moody’s or S&P
• NYSE listed; fixed rate
• Minimum issue size $200 million
• Not callable for three years
• Equal dollar weight US$; semi annual re-balance
• Running yield (January 2007): 6.3%
• Sample size: 10%

Canadian Preferred Shares (private client only)

• Listed TSX fixed rate preferred shares with a minimum rating of P2.
• Minimum series size $150 million
• Equal dollar weighting C$
• no set rebalance
• New purchases cannot be redeemable within one year of purchase

Income Trusts Portfolio

• TSX listed income trusts with a minimum float market cap of $200 million
• Paying a distribution.
• Equal dollar weight; semi-annual re-balance.
• +100 constituents
• TSX listed instruments: IEP.UN, EQW.UN
• Sample size: +80% of asset class
• Running yield (February 2007): 9.7%

SR-1 Income Trust Portfolio

• Portfolio of TSX listed income trusts which meet S&P Stability Rating 1 guidelines regarding rated constituents, single issuer risk, energy issuer exposure and other criteria
• 45 constituents, average market cap $1.7 billion
• Equal dollar weight; semi-annual re-balance.
• Sector weightings are approximately: oil & gas 10.8%, utilities 21.7%, REITs 19.5%
• Running yield (February 2007): 8.2%

Common Share: Rules Based

US Heavyweight

• largest US stocks held in S&P 100
• Equal dollar weight US$; semi annual rebalance
• Benchmarked to S&P 100
• Sample size 85% S&P 100

International Heavyweight

• largest ADR and global shares of BNY Developed Markets 100 ADR Index.
• Equal dollar basis in US$; semi annual rebalance
• Benchmarked to BNY and MSCI EAFE
• Sample size: 77% BNY ADR Index, 38% MSCI EAFE

Global Heavyweight

• 50% International Heavyweight
• 50% US Heavyweight
• Benchmarked to S&P Global 100

Canadian Heavyweight

• largest TSX listed Canadian common stocks measured by float market cap
• Equal dollar weight C$; semi annual rebalance
• Benchmarked to TSX 60
• Sample size 78% TSX Composite

Global Gold Heavyweights

• US listed gold miners with minimum market cap of $500 million US
• Constituents held on an equal dollar basis in US$
• Annual Rebalance : Benchmarked to Philadelphia Gold & Silver Index

Global Utilities Heavyweight

• Global utilities and multi-utilities, ADRs or global shares
• Minimum market cap of $10.0 billion US
• Approximately 25 constituents, leading US and European utilities
• Constituents held on an equal dollar basis in US$
• Semi-annual rebalance: Benchmarked to S&P Global Utility Index

Balanced Portfolios: Active Asset Allocation

Global Total Return Portfolio

• Active asset allocation using ETFs for specific asset categories
• Portfolio Constraint : Min stocks/fixed income: 30%
• Benchmark portfolio: 60% equities and 40% fixed income
• Semi annual Rebalance
• Performance benchmark SEI balanced/ Globe Investor Global Balanced Fund median

Mutual and Closed End Funds & Future Mandates

Mutual and Closed-End Funds

• Galileo Funds: sub-advisor to the Global Active/Passive and Canadian Active/Passive Mutual Funds, launched December 2006.
• Citadel Group of Funds: re-balancing advisor for IEP.UN –T, EQW.UN-T (income trust instruments) and FPR.PR.A – T (US Preferred shares instrument).

Hedged Balanced Portfolios

• - Heavyweight portfolios with level 1 US options

© Shaunessy Investment Counsel Inc. 2003-2008