Barry Allan, President & Chief Investment Officer WAISC Presentation September 13-14, 2010

Who We Are One of Canada’s largest independent managers of fixed income credit Over $4.8 billion in AUM $850 million in long/short strategies 9 experienced investment professionals 100% employee owned

Investment Landscape: 2010 US economic growth and S&P 500 earnings will be above consensus in H1 2010; H2 will be weaker but more “muddle through” than slowdown High Yield attractive 8 3/8% yield, 700 bps spread and a 1% default rate The Fed remains on hold and the 10 yr. Treasury yield stays low S&P 500 trades in a range with periods of high volatility Coal and iron ore prices stay strong based on Chinese demand and stable global growth Oil prices range bound at $70-$85 The world is nervous but have faith in central banks

Investment Landscape: What To Do: Short equities, high yield credit, commodities Long 30 year Canada bonds and the Canadian dollar Long high grade corporate debt, e.g. Microsoft, P&G, J&J, Berkshire Hathaway - Short US Treasuries - Spreads go negative Gold and silver: ETFs and stocks in C$ Short CDX index swaps – counterparties important: JPM, DB, BNS

Marret High Yield Hedge Fund Exploit valuation inconsistencies between debt and equity securities within an individual high yield issuer’s capital structure. Focus on the less-efficient Canadian high yield corporate bond market Lower volatility strategy with yield cushion from the coupon. Long an issuer’s debt and short its common equity:  Long the inexpensive part of the company’s capital structure and short the expensive part  Yield harvesting

Marret Investment Grade Hedge Fund Invest long/short in Canadian & US investment grade corporate bonds Selective long/short investment in Canadian & US high yield bonds, up to 10% Full duration-weighted hedging using government bonds Ability to hedge credit risk using actively traded credit indices Fully currency hedge Tactical use of leverage with maximum 3x net leverage