Magna High Income Fund

The investment objectives of the Magna High Income Fund will be to deliver consistent, long term income by investing in and actively managing a portfolio a number of alternative fixed income pools located inside and outside of Canada. The portfolio of the Magna High Income Fund may include mortgage investment corporations, life settlement funds, medical receivables, asset based lending and other secured financing arrangements. Earnings will be primarily interest income. The Magna High Income Fund may hedge investments denominated in non-Canadian currencies. As its portfolio grows, the Magna High Income Fund will need to be rebalanced and restructured from time to time in order to optimize its investment returns.

The Magna High Income Fund may borrow funds on a secured or unsecured basis for the purpose of purchasing currency hedging instruments. The Magna High Income Fund may also borrow funds on a secured or unsecured basis for the purpose of funding redemptions of the Units. There is no restriction on the amount of leveraging that the Magna High Income Fund may undertake at any given time, although it is the intention of the Investment Manager to never exceed leveraging in excess of 50% of the net asset value of the Magna High Income Fund. The Magna High Income Fund may invest in fixed income pools which use leverage within their structure.

Given the possibility that some of the underlying assets of the Magna High Income Fund may be in securities denominated in US dollars or other currencies, the Magna High Income Fund may engage in currency hedging transactions. The Investment Manager does not intend to use derivatives other than in connection with currency hedging.