Barry Allan, President & Chief Investment OfficerWAISC PresentationSeptember 13-14, 2010

Who We Are

One of Canada’s largest independent managers of fixed income credit

Over $4.8 billion in AUM

$850 million in long/short strategies

9 experienced investment professionals

100% employee owned

Investment Landscape: 2010

US economic growth and S&P 500 earnings will be above consensus in H1 2010; H2 will be weaker but more “muddle through” than slowdown

High Yield attractive 8 3/8% yield, 700 bps spread and a 1% default rate

The Fed remains on hold and the 10 yr. Treasury yield stays low

S&P 500 trades in a 1000 - 1200 range with periods of high volatility

Coal and iron ore prices stay strong based on Chinese demand and stable global growth

Oil prices range bound at $70-$85

The world is nervous but have faith in central banks

Investment Landscape: 2011- 2014What To Do:

Short equities, high yield credit, commodities

Long 30 year Canada bonds and the Canadian dollar

Long high grade corporate debt, e.g. Microsoft, P&G, J&J, Berkshire Hathaway - Short US Treasuries - Spreads go negative

Gold and silver: ETFs and stocks in C$

Short CDX index swaps – counterparties important: JPM, DB, BNS

Marret High Yield Hedge Fund

Exploit valuation inconsistencies between debt and equity securities within an individual high yield issuer’s capital structure.

Focus on the less-efficient Canadian high yield corporate bond market Lower volatility strategy with yield cushion from the coupon. Long an issuer’s debt and short its common equity:

Long the inexpensive part of the company’s capital structure and short the expensive part

Yield harvesting

as of August 31, 2010

Cumulative Growth of $1000

800

1000

1200

1400

1600

1800

2000

2200

2400

2600

11/30/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009

Marret Master II S&P 500 US 10Yr Treasury

11.28%5.59%Standard Deviation

10.24%12.14%Annual Return

15.08%

3.52%

8.28%

5.80%

Marret Investment GradeHedge Fund

Invest long/short in Canadian & US investment grade corporate bonds Selective long/short investment in Canadian & US high yield bonds, up to 10% Full duration-weighted hedging using government bonds Ability to hedge credit risk using actively traded credit indices Fully currency hedge Tactical use of leverage with maximum 3x net leverage

Top 10 Sectors

Energy, 3.96%

Other, 8.1%

Capital Goods, 3.3%

Food & Drug Retail, 3.90%

Diversified Media, 8.0%

Government, 45.3%

Food/Beverage/Tobacco, 10.2%

Telecommunications, 6.7%

Insurance, 4.9%

Banking, 2.9%

Cable/Satellite TV, 2.8%

Calculated as a proportion of gross invested capital excluding cash

Historical Compound Annual Return to August 31, 2010

Fund/Index YTD Since Inception* Volatility*Marret High Grade Hedge 7.4% 44.9% 18.0%Merrill Lynch Canadian Corporate Index 7.0% 11.1% 3.7%S&P 500 Total Return -4.6% 14.3% 17.4%Performance from January 1, 2010 is for Marret High Grade Hedge LP; prior returns since July 1, 2009 are for the Marret High Grade Hedge Ltd.

PERFORMANCE (net of fees): Total Fund Assets $9.72 millionTotal Strategy Assets $437 million

$100 SinceJAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD Inception

2010 2.77 2.10 3.07 1.18 (4.07) 0.48 1.30 0.53 7.4% $ 154.54 2009 1.02 18.65 6.02 4.24 7.24 1.05 43.9% $ 143.88