YIELDPLUS Income Fund invests in a diversified portfolio comprised primarily of equity income securities and remains focused on enhancing long-term total return through capital appreciation.

Over several decades, dividends have benefited investors by accounting for approximately two-thirds of total equity returns and dampening the volatility associated with investing in equities. In addition, dividends from Canadian corporations have become increasingly tax efficient and are now taxed at a lower rate than interest income. We continue to believe that companies offering high levels of sustainable income will attract significant investor interest and receive premium valuations, especially within an environment of relatively low interest rates and a Canadian market with few alternatives for investors seeking yield.

Assisted by the research of our Special Advisor, Groppe, Long and Littell of Houston, Texas, we remain very positive on the oil and gas sector and continue to hold the view that global oil and North American natural gas production are peaking. The Fund is invested in oil and gas companies that possess high quality assets, attractive yields, low payout ratios, modest levels of third party debt, proven management teams and the ability to build value through internal operations. In addition, in order to enhance the stability and tax efficiency of distributions, the Fund has also had a core weighting in real estate investment trusts.