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Annual report 2013 PAST PERFORMANCE How the Fund has performed in the past does not necessarily indicate how it will perform in the future. Year-by-Year Returns & Target Yield Operational Summary The following column chart documents the Fund's performance for the period shown as an internal rate of return and as against the Fund's target yield. In percentage terms, the total of each column shows how much an investment made on the first day of the financial period would have grown or decreased by the last day of the financial period assuming that all distributions made by the Fund in the period shown were reinvested in additional securities of the Fund. The chart further documents the composition of each period's return between the target yield and the actual return. The following chart documents the key monthly portfolio activity in the Fund since its inception. On the left axis, the columns depict the investment cash flows (deployment and return of principal) and the shaded area represents aggregate deployed capital. On the right axis, the number of individual mortgages comprising the portfolio is presented as a linear data series. The Fund's target yield is a proxy for the market rate of return on an investment with a similar risk profile to that of the Fund, and is calculated by adding the average Government of Canada 2 year benchmark bond yield1 for the period shown and a premium of 5.50%. Performance • Target Yield • 1 20 Bond series V122538.