CrestStreet

This Fund is not intended to be a complete investment program and may only be suitable if you:

• are seeking long-term capital appreciation;
• are seeking exposure to the high growth potential of emerging trends aimed to reduce global dependence on traditional energy sources;
• can withstand high volatility in the value of the Fund's securities; and
• can tolerate a high level of investment risk.

• The Fund will establish core-holdings by employing a GARP-based ("Growth at a Reasonable Price") approach with an emphasis on long-term commercial viability, growth and value creation. This will be achieved by following a "top-down" approach whereby macro-economic fundamental factors will be thoroughly analyzed to assess relative economics and determine emerging trends in alternative energy sub-sectors. The entire value chain and competitive landscape will be reviewed to identify companies best positioned to profit from those trends. Company specific investment decisions will be made on the basis of management, valuation, and financial strength including access to capital. Valuation criteria will emphasize EBIDTA and Sales multiples, as well as Discounted Cash Flow Analyses.
  
  
• Approximately 40% of the Fund's invested assets will be allocated to core-holdings as described above. The Fund will primarily employ a buy and hold approach to its core holdings, but may trade around these positions from time to time based on short term fluctuations in their market value. Up to 60% of the Fund's net assets may be more actively invested to enhance diversification and capture perceived short term momentum and market trends. In the event of high portfolio turnover, the Fund may deviate from its fundamental investment objectives as a result of adverse market, economic, political or other considerations.
  
  
• Portfolio holdings are typically concentrated within a limited number of companies, usually 15 to 30, to maintain awareness of corporate developments and communication with each company's management.
  
  
• The Fund may hold up to 70% of its net assets in cash or marketable securities to mitigate market exposure in unfavourable or uncertain environments. Due to the relatively high levels of uncertainty and thus volatility inherent in the emerging nature of the sector, the Fund may from time to time reduce market exposure while monitoring regulatory policy changes, sector wide access to capital, technological viability and other factors crucial to making informed and prudent investment decisions.
  
  
• The investment strategy follows strong disciplines with regard to diversification and relative values. The Fund will seek to take advantage of short term company specific value fluctuations to enhance its return but maintain an appropriate diversified core base of securities to seek both growth and preservation of capital. That approach is designed to provide an extra margin of safety, which in turn serves to reduce overall portfolio risk.
  
  
• The portfolio manager may decide to maintain a larger portion of the Fund's assets in larger, more liquid investments or in short-term fixed income securities during periods of high market valuations or volatility. This strategy may be undertaken to protect capital and enhance liquidity to take advantage of more favourable market conditions in the future.
  
  
• The Fund may sell foreign currencies to hedge exposure to fluctuations in that currency arising from a position in a security which is priced in that currency.
  
  
• The Fund may use derivative instruments, including debt-like securities, forward contracts, futures contracts, warrants, options or options on futures and swaps, as permitted by National Instrument 81-102. A derivative is an investment whose value is based on the performance of other investments or on the movement of interest rates, exchange rates or market indexes. Derivatives are often used for hedging against potential losses because of changes in interest rates or foreign exchange rates. There are many different kinds of derivatives, but they usually take the form of an agreement or security, the price, value or payment obligations of which are derived from or based on an underlying interest. For a description of the risks associated with the use of derivatives by the Fund, please see Derivatives risk above.
  
  
• The Fund may engage in short selling. The Fund is permitted to engage in short selling as a result of special relief it obtained from the Canadian securities regulators. This relief imposes limits and conditions on the Fund's short selling activities including that: (i) if the Fund is selling short an equity security, the Fund will short sell only securities of issuers that have a market capitalization of not less than $100 million of the security sold short at the time the short sale is made or that the investment advisor has pre-arranged to borrow for the purposes of such short sale, or the security is a bond, debenture or other evidence of indebtedness of or guaranteed by the Government of Canada or any province or territory of Canada or the Government of the U.S., (ii) the Fund will limit its short sale exposure to any single issuer to 5% of the Fund's net assets and its aggregate short sale exposure to 20% of its net assets, (iii) the Fund will place a "stop-loss" order with a dealer to immediately repurchase for the Fund the securities sold short if the trading price of the securities exceeds 120% (or a lower percentage determined by us) of the price at which the securities were sold short, (iv) the Fund will hold cash cover in an amount (including the Fund's assets deposited with lenders) that is at least 150% of the aggregate market value of all securities sold short, and (v) the Fund will deposit collateral only with lenders which fulfill certain criteria for creditworthiness. The Fund will engage in short selling as a complement to the Fund's current primary discipline of buying securities with the expectation that they will appreciate in market value. For a more detailed description of short selling and the limits within which the Fund may engage in short selling, please refer to "Investment Risks" in the first part of this document
  
  
• The Fund may invest in foreign securities up to a maximum of 50% of the Fund's NAV.