E-Delivery

2015 ANNUAL REPORT For the fiscal year ended the last day of February Class B preferred share 2015 2014 2013 2012 2011 Per share equity, beginning of period $ 10.00 $ 10.00 $ 10.00 $ - $ - Increase (decrease) from operations: Total income 1.05 1.07 1.12 - - Total expenses (0.21) (0.22) (0.25) - - Profit per share: Basic and diluted 0.84 0.85 0.87 - - Distributions: From income (0.84) (0.85) (0.87) - - - - - - - Per share equity, end of period $ 10.00 $ 10.00 $ 10.00 $ - $ - Ratios and supplemental data: Total share equity (1) $ 20,098,298 $ 12,847,921 $ 1,271,298 $ - $ - Number of shares outstanding (1) 2,009,830 1,284,792 127,172 - - Management expense ratio (2) 2.10 % 2.21 % 2.66 % - - Portfolio turnover rate (3) 0.80 0.61 1.03 - - Payout ratio (4) 100.00 % 100.00 % 98.58 % - - Redemption price $ 10.00 $ 10.00 $ 10.00 $ - $ - (3) The Fund's portfolio turnover rate is calculated according to the following formula: [mortgage loan principal repayments received] / [daily weighted average size of the mortgage portfolio]. The portfolio turnover rate indicates how quickly the portfolio's mortgage principal is being repaid. A portfolio turnover rate of 1.00 is equivalent to the Fund receiving repayments of all mortgage investments once in the course of the year. There is not necessarily a relationship between a high turnover rate and the performance of the Fund. (4) Payout ratio is calculated according to the following formula: [dividends declared to holders of all classes of preferred shares] / [net income and comprehensive income attributable to all classes of preferred shares]. 32

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