Company Details

Directors and Officers

The following are the names, office(s) held and principal occupations of the directors and officers of Scotia Managed Companies Administration Inc.:

Stephen D. Pearce
Chief Financial Officer, Secretary and Director
(Director, Scotia Capital Inc.)

Robert Hall
President, Chief Executive Officer and Director
(Managing Director, Scotia Capital Inc.)

Roberta Carano
Director
(Director, Scotia Capital Inc.)

The following are the members of the Independent Review Committee:

Timothy Spark
Chairman

Louise Morwick

James Mountain


Profile

The Anchor Managed Funds are a family of three mutual funds providing investors with professionally managed solutions designed to suit their investment profile. The Anchor Managed Funds offer Class A and Verus Class A units and Class F and Verus Class F units. The classes have different management fees and are intended for different investors. Class A units are available to all investors. Class F units are generally available only to investors who have fee-based accounts with authorized brokers or dealers, including ScotiaMcLeod, a division of Scotia Capital Inc.

The Verus Class A units and Verus Class F units are only available to clients of Verus Wealth Management, a division of ScotiaMcLeod. The Verus Class A units are available to all Verus Wealth Management clients. The Verus Class F units are generally available only to Verus Wealth Management clients who have fee-based accounts with authorized brokers or dealers, including ScotiaMcLeod, a division of Scotia Capital Inc.

Anchor Managed Dividend Growth Fund

The fund's objectives are to provide stable quarterly cash distributions and potential for consistent, long term capital appreciation. The fund invests primarily in a portfolio of high dividend-yielding equities of large TSX listed Canadian companies and REITs and at certain times, may invest in Canadian preferred shares and debt securities.

The Portfolio Advisor

SMCAI has retained ScotiaMcLeod (a division of Scotia Capital Inc.) as portfolio advisor. Mr. Nicholas L. Majendie of Vancouver, British Columbia will provide investment advice to the funds. Mr. Majendie is employed by ScotiaMcLeod. Scotia Capital Inc. is the 100% owner of SMCAI. Mr. Majendie has the authority, subject to the direction of SMCAI, to give instructions to purchase and sell securities on behalf of the funds in accordance with their respective investment objectives and restrictions.

Born in England and educated at Winchester College and Oxford University, Mr. Majendie came to Canada in 1964, became a C.A. with Price Waterhouse in 1967 and in 1969 entered the investment business as a research analyst.

Subsequently, Mr. Majendie headed Research and Institutional Sales departments with several different brokerage houses including Crang and Ostiguy in Montreal and FH Deacon Hodgson in Toronto before moving to Vancouver, where, in 1984, he formed Majendie Securities, which over 13 years grew from 2 to 120 staff.

After Mr. Majendie sold his interest in Majendie Securities, he headed the Independence Department, Canaccord's Discretionary Managed Portfolio Program. He worked both as the firm's Portfolio Strategist and as Chief Portfolio Manager of the Independence Portfolios, which grew to over $700 million and boasted a solid performance track record.

In 2009, Mr. Majendie joined ScotiaMcLeod as Director of Wealth Management, Majendie Wealth Management where he continues to manage assets, including the Anchor Managed Funds.

General Information

Distribution Policy

The fund intends to make a distribution by the last business day of each calendar quarter that may consist of net income, net realized capital gains and/or return of capital. The amount of the quarterly distribution may be adjusted throughout the year as market conditions change. Any additional distributions of income and capital gains will be made in December of each calendar year. If the fund does not earn enough income and capital gains to meet the quarterly distribution, it may return capital to make up the difference. A return of capital will reduce the adjusted cost base of your units.

Distributions on units held in registered plans and nonregistered accounts are reinvested in additional units of the fund, unless you tell your mutual fund representative that you want to receive cash distributions.

Redemption

Units are redeemable on a weekly basis at a price equal to the NAV per Unit applicable to the class of Units as at the Valuation Date upon which the Units are redeemed, subject to the Fund's right to suspend redemptions in certain circumstances. Unitholders will receive the Redemption Price within ten business days of the applicable Redemption Date.

Taxation

Dividends received by individual Class A and Class F Unitholders will be subject to the normal gross-up and dividend tax credit rules applicable to dividends received on shares of a taxable Canadian corporation. The amount of any capital gains dividend received by a holder of Class A Units or Class F Units will be considered to be a capital gain in the taxation year in which the capital gain dividend is received. Amounts received as a return of capital are not taxable but must be used to reduce the adjusted cost base of an investor's Units.