Chou Europe Fund

• The Fund's objective is to provide conservation of principal and income production with capital appreciation as a secondary consideration.
• The Fund invests primarily in Canadian and US bonds. These bonds include, but are not limited to Government of Canada, provincial municipal and corporate issues, including convertibles and high yield bonds. Investments may be made in bonds outside of Canada and U.S.
• Unitholder approval is required in order to change the fundamental investment objectives of the Fund.

The Fund seeks to achieve its investment objectives by investing in securities that it believes are undervalued. The Fund will generally be fully invested. A combination of investment strategies will be utilized in managing the portfolio including relative value trades, yield enhancement strategies and interest rate anticipation traces. The Fund will primarily invest in securities issued by governments, municipalities, provinces and corporations in Canada and the United States but can invest anywhere in the world. The Fund may invest in a wide variety of fixed income instruments including government bonds, corporate bonds (both investment grade and non-investment grade), preferred securities, income trusts, bank debt, commercial paper, repurchase agreements, mortgage backed securities, convertible securities and credit default swaps. No more than 35% of the net assets of the Fund, at the time of purchase, will be invested in bonds outside of Canada and U.S.