Company Details

Directors and Officers

The following are the names, office(s) held and principal occupations of the directors and officers of the Company:

Brian D. McChesney
President, Chief Executive Officer and Director
(Corporate Director)

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

Douglas Derry
Director
(Corporate Director)

Terry Jackson
Director
(Corporate Director)

D. Anthony Ross
Director
(Chair of the Board of Infrastructure Ontario)

Robert Hall
Director
(Managing Director, Scotia Capital Inc.)


Profile

High Rock Canadian High Yield Bond Fund was created to provide investors with exposure to an actively managed and diversified portfolio (the "Portfolio") consisting primarily of high yield bonds of Canadian corporate issuers denominated in Canadian dollars. The Portfolio is managed by High Rock Capital Management Inc.

General Information

Distribution Policy

The Fund does not have a fixed distribution but targets quarterly distributions based on the estimated annual cash available to the Fund from the income on the portfolio reduced by the expenses of the Fund for the period. For historical distribution amounts, please see distribution information.

Redemption of Units

The following provides a summary of the redemption rights available to Unitholders. Please refer to the prospectus for complete details.

Unlike most mutual funds the Units are listed allowing holders to exit by selling their Units. In addition, they are also redeemable at any time. Because of the manner in which the redemption prices are calculated, investors are almost always better off selling their Units on the market rather than redeeming them. It should be noted that all the redemptions listed below constitute a taxable disposition of the Units at the time of the redemption whether the redemption is received in the form of cash or portfolio shares.

Monthly Redemption

Units may be surrendered for redempion at least 10 business days prior to the last business day of each month for payment on or before the 15th day of the following month. Unitholders are entitled to receive a redemption price equal to the lesser of (a) 95% of the weighted average trading price of the Class A Units on the TSX during the 15 trading days preceding the applicable monthly retraction date, and (b) the "closing market price" of the Class A Units on the principal market on which the Class A Units are quoted for trading on the applicable monthly redemption date less, in each case, any costs associated with the redemption, including brokerage costs and less any net realized capital gains of the Fund that are distributed to a Unitholder concurrently with the proceeds of disposition on redemption.

Annual Redemption

Commencing in 2015, Units may be redeemed on December 15th (the "Annual Redemption Date") in any year. Units must be surrendered for redemption by a Unitholder prior to 5:00 p.m. (Toronto time) on November 15th of each year. Unitholders whose Units are redeemed on the Annual Redemption Date will be entitled to receive a redemption price per Unit (the "Unit Redemption Price") equal to 100% of the Net Asset Value per Unit as of the Annual Redemption Date, as applicable, less any costs and expenses incurred by the Fund in connection with funding the redemption, and less any net realized capital gains of the Fund that are distributed to a Unitholder concurrently with the proceeds of disposition on redemption. Unitholders who redeem Units will receive the Unit Redemption Price on or before December 31st of such year, subject to the Fund's right to suspend redemptions in certain circumstances. Payment of the proceeds of redemption will be made within 10 business days following the redemption date, subject to the Fund's right to suspend redemptions in certain circumstances. Concurrently with the payment of the Unit Redemption Price, the Fund may pay to the redeeming Unitholder a cash distribution in the amount of any net realized capital gainsof the Fund for the taxation year of the Fund in which the redemption occurs.

Taxation

A Unitholder will generally be required to include in computing income for a taxation year the amount of the Trust's net income, including net realized taxable capital gains, paid or payable to the Unitholder in the taxation year. The non-taxable portion of the Trust's net realized capital gains paid or payable (whether in cash or in Units) to a Unitholder in a taxation year will not be included in the Unitholder's income for the year.

On the disposition or deemed disposition of a Unit, the Unitholder will realize a capital gain (or capital loss) to the extent that the Unitholder's proceeds of disposition, net of any reasonable costs of disposition, exceed (or are less than) the adjusted cost base of the Units. For the purpose of determining the adjusted cost base to a Unitholder, when a Unit is acquired, the cost of the newly acquired Units will be averaged with the adjusted cost base of all Units owned by the Unitholder as capital property before that time.