Hillsdale Canadian

Performance Equity

Fund Investment Objectives

The investment objective of the strategy is to provide a rate of return on capital in excess of the S&P/TSX Small Cap Index with volatility equal to or less than the Index. The Fund is an open-end investment trust formed pursuant to the laws of Ontario. The Fund invests a minimum of 75% of its assets in a diversified selection of small cap Canadian corporations and unit trusts trading on major Canadian exchanges. No single equity position exceeds 5% of the Fund's assets. The Fund limits its purchases of securities of corporations and unit trusts in the S&P/TSX Composite Index so that the aggregate S&P/TSX Composite Index market weight, determined at the time of purchase, of these securities will not exceed 10%. Hillsdale has received approval from the Canada Revenue Agency that the Fund qualifies as a registered investment under the Income Tax Act (Canada), so that Units of the Fund are qualified investments for trusts governed by registered retirement savings plans, registered retirement income funds or deferred profit sharing plans (Tax-Deferred Plans) and are not foreign property for such plans and for registered pension plans.