Income Portfolio March 15, 2008:

I have not made any changes to the portfolio over the past few months due to the extreme volatility in the credit markets. The portfolio is designed to offer a variety of ideas for income rather than capital appreciation and tends to be positioned conservatively for that reason.

Original Cost: April 15, 2004: $200,663.00

Bond holdings:

Canadian Housing Trust 3.55% March 15, 2009, purchased April 15, 2005 at $100.66 to yield 3.40%

Government of Canada 4.25% September 24, 2009, 5.25 year bond issued by the Government of Canada. Original cost $101.80 to yield 3.91%

Preferred Shares:

Bank of Nova Scotia preferred series 12, straight preferred redeemable @$25.00 on October 29, 2013. original cost: $26.90 to yield 4.87%

PNG.PR.A: Pacific Northern Gas series A, straight preferred callable on 30 days notice @ $26.00. Original cost; $26.26 to yield 6.44%

ENB.PR.A: Enbridge preferred series A, straight preferred callable @ $25.00 on 30days notice. Original cost $25.05 to Yield: 5.49%

W.PR.H: WestCoast Energy preferred series 7, straight preferred redeemable on October 15, 2013 @ $25.00, original cost $26.71 to yield 5.17%

CPD: Claymore S&P/TSX CDN Preferred Share ETF: Holds 52 individual preferred shares with 63% of the issues from Banks and Insurance companies. MER 0.45%, Dividend yield 4.86%

Income Trust:

AW.UN: A&W Revenue Royalties Income Fund. Units receive 3% of the revenue for A&W restaurants. Original cost $11.60 to Yield: 9.3%

NPI.UN: Northland Power Income Fund owns a cogeneration power plant at Iroquois Falls Ontario. Sell power to Ontario Hydro. Original cost $11.70 to Yield: 8.62%

YLO.UN: Yellow Pages Income Fund printing and publishing of Telephone directories across Canada. Original cost $13.28 to yield 8.21%

PIF.UN: Pembina Pipeline Income Fund operates an OIL & Gas pipeline transporting from Western Canada to Eastern markets. Original cost $12.27 to Yield: 8.56%.