North American Equity Income Securities

North American Equity Income Securities are income-producing equities that are traded on a North American exchange. These securities typically produce high levels of current income and offer capital appreciation potential. The businesses that make up this sector usually exhibit a low to moderate growth profile but can generate attractive levels of free cash flow.

Stonebridge has expertise in three types of North American Equity Income Securities:

CANADIAN INCOME TRUSTS

Canadian Income Trusts are equity securities that distribute the free cash flow produced by an underlying business to investors in a tax-efficient manner. The advantages of Income Trust ownership include:

• High level of current income
• Tax-advantaged income
• Superior risk-adjusted returns
• Uncorrelated returns
• Diversified industry exposure and cash flow stream

It is important to note that in June 2007, the Canadian Government enacted legislation which will effectively tax Income Trusts at the rate of 31.5% commencing in 2011.

U.S. MASTER LIMITED PARTNERSHIPS (MLPs)

MLPs are publicly-traded partnerships that distribute the free cash flow produced by an underlying business to investors in a tax-efficient manner. MLPs are not subject to federal or state income taxes and typically operate businesses in the midstream portion of the energy value chain. There are two types of partners in an MLP:

Limited Partners - Passive investors who provide capital for the partnership and are entitled to receive partnership distributions.

General Partner - Manages and operates the business of the partnership and is also entitled to its pro rata share of partnership distributions along with incentive distributions rights for delivering growth in partnership distributions.

Advantages of MLP Ownership Include:

• High level of current income
• Tax-advantaged income
• Superior risk-adjusted returns
• Uncorrelated returns

NORTH AMERICAN HIGH DIVIDEND EQUITIES

These securities consist of corporations with high relative dividend levels and high dividend growth rates. Generally, high-dividend paying corporations have historically outperformed their non-dividend paying peer group.

PORTFOLIO MANAGEMENT

Stonebridge has the capability to manage North American Equity Income Securities for:

• High Net-Worth Individuals
• Closed-End Funds
• Institutional Accounts
  • Charitable Foundations and Endowments
  • Corporations
  • Pension and Retirement Systems