Income Portfolio March 15, 2006 :

The Bank of Canada recently increased interest rates by 0.25% as expected and it appears that there will likely be another increase before summer. If the Canadian dollar remains above 86 cents US that will likely be the end of interest rate hikes for this cycle.

The Bank of Canada has indicated that it is concerned about the impact of the higher Canadian currency on the economy. The indications are that the Bank will stop increasing due to the negative impact on the manufacturing and export industries which has traditionally been the engine of growth in the Canadian economy.

Investors should be ready to increase term in anticipation of lower interest rates later this year.

Income Portfolio as at March 15, 2006 :

Bond holdings:

Farm Credit Corp 3.5% April 15, 2007 , 3 year bond issued by a Federal Government crown corporation. This bond is a direct obligation of the Federal Government. Original cost $101.26 to yield 3.07%.

Farm Credit Corporation 3.25% April 15, 2008 , a crown corporation and direct obligation of the Federal Government purchased April 15, 2005 at $100.20 to yield 3.21%

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:

BCE.PR.C: BCE Inc preferred series AC, callable March 2008 may be exchanged for a floating rate preferred or rolled to a new fixed rate preferred at that time. Original cost

$ 26.65 to Yield: 5.20%

NRD.PR.G: Noranda Inc preferred series G, callable November 1, 2006 can be exchanged for a floating rate preferred or a new fixed rate preferred at that time. Original cost $25.75 to Yield: 5.90%

NRD.PR.H: Noranda Inc Preferred series H, retractable June 30, 2008 @ $25.00, issuer has the right to settle retraction obligation with common shares. Original cost $26.50 to Yield: 6.12%

ENB.PR.A: Enbridge preferred series A, straight preferred callable @ $25.00 annually December 1 st until 2005 then on 30days notice thereafter. Original cost $25.05 to Yield: 5.49%

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%

NIF.UN: Noranda Income Fund owns and operates a Zinc processing facility, Original cost $11.60 to Yield: 8.88%

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%