CrestStreet

Investment objectives

• The Fund’s objective is to provide the potential for long-term growth of capital and, to a lesser extent, production of income.
• The Fund invests primarily in equity securities of Canadian resource issuers.
• The Fund may also invest in foreign securities.

Investment strategies

• To meet its objectives the Fund will invest primarily in a diversified portfolio of equity securities of natural resource companies involved in the production, development and/or exploration of Energy related commodities, Basic Materials, Precious Metals and Chemicals & Fertilizers.
• The Fund initially employs a "top down" approach, reviewing economic data, market trends, monetary policies and other macro economic data globally to identify business cycle trends with a focus on the implication for global commodities.
• The Fund will tend to overweight the resource sub sectors based on the top down analysis that demonstrate the strongest relative potential. The Fund will remain diversified to avoid exposing the Fund to undue sub-sector risk.
• The Fund also employs a "bottom up" analysis to select the investments with the best risk adjusted potential within the resource sub sectors. The Fund reviews financial information of potential investments to identify attractively priced companies, those with improving fundamentals and those that have the most potential for price appreciation.
• Qualitative analysis, including interviewing management and attending periodic site visits is used to identify potential shorter and longer term catalysts.
• The portfolio manager manages investment partnerships on behalf of its clients and assets of these entities may be acquired by the Fund in the future on a tax-deferred basis.
• 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 choose to deviate from its investment objectives by temporarily investing most or all of its assets in cash or fixed income securities during periods of market downturn or for other reasons.
• The Fund may invest in foreign securities up to a maximum of 50% of the Fund’s NAV.
• The Fund anticipates a portfolio turnover rate in excess of 70%. The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of the Fund.

• 2011 December - Manager Commentary
• 2011 November - Manager Commentary
• 2011 October - Manager Commentary
• 2011 September - Manager Commentary
• 2011 August - Manager Commentary
• 2011 July - Manager Commentary
• 2011 June - Manager Commentary
• 2011 May - Manager Commentary
• 2011 April Newsletter
• 2011 March Newsletter
• 2011 February Newsletter
• 2011 January Newsletter
• 2010 December Newsletter
• 2010 November Newsletter
• 2010 October Newsletter
• 2010 September Newsletter
• 2010 August Newsletter
• 2010 July Newsletter
• 2010 June Newsletter
• 2010 May Newsletter
• 2010 April Newsletter
• 2010 March Newsletter
• 2010 February Newsletter
• 2009 October Newsletter
• 2009 September Newsletter
• 2009 August Newsletter
• 2009 July Newsletter
• 2009 June Newsletter
• 2009 May Newsletter
• 2009 April Newsletter
• 2009 March Newsletter
• 2009 February Newsletter
• 2009 January Newsletter
• 2008 December Newsletter

Investor Tax Information - 2011

Investor's T5 Tax Slips for distributions paid in the 2011 tax year will be mailed to investors on or before February 28, 2012.

The ACB Table below ONLY relates to those series of Resource Fund shares acquired from the rollover of a Creststreet Limited Partnership.

The ACB for other series of the Resource Fund will be based upon an investor’s original purchase price and any subsequent purchases and/or distributions.

• Resource Fund - Series A shares (English)
• Resource Fund - Series A shares (French)
  
  
• Resource Fund - Series B shares (English)
• Resource Fund - Series B shares (French)
  
  
• Resource Fund - Series F shares (English)
• Resource Fund - Series F shares (French)
  
  
• Resource Fund - Series 2012N shares (English)
• Resource Fund - Series 2012N shares (French)
• Resource Fund - Series 2012Q shares (English)
• Resource Fund - Series 2012Q shares (French)

Corporate Information

Officers & Directors				Position with the Fund		Principal Occupation
Robert J. Toole Toronto, Ontario		|		Chief Executive Officer and Director		Chairman, Chief Executive Officer, Chief Investment Officer and a director of Creststreet
Kevin A. Wood Toronto, Ontario		|		President		President of Creststreet
Jeffrey S. Boyce1 Calgary, Alberta		|		Director		President, Chief Executive Officer and Director of SURE Energy Inc.
Stuart P. Hensman1 Toronto, Ontario		|		Director		Member of the Board of Governors of the mutual funds managed by CI Investments and a director of Rifco Inc. and Brazalta Resources Corp.
John E. Thompson1 Calgary, Alberta		|		Director		President, Chief Executive Officer and a director of Sirius Energy Inc.
Donna E. Shea Toronto, Ontario		|		Senior Vice President, Finance and Chief Financial Officer		Senior Vice President, Finance, Chief Financial Officer and a director of Creststreet
Sheryl J. Chiddenton Toronto, Ontario		|		Vice President, Secretary-Treasurer		Vice President, Compliance and Investment Services, Secretary-Treasurer and a director of Creststreet

¹ (Independent Director and Member of the IRC)