Distributions from the Fund may have tax benefits which result in higher after-tax cash flow than if the income had been earned as interest income. The Fund's distributions are expected to consist primarily of a return of capital and to a lesser extent capital gains for income tax purposes.

A return of capital results in a deferral of a unitholder's income tax as it is not included in their income but rather it reduces the adjusted cost base of their holdings of the Fund. The reduction in the adjusted cost base of the units are ultimately taxed as a capital gain when the units are sold for investors who hold their units as capital property.

The Fund is structured to transform distributions on the portfolio into more tax efficient return of capital. This is accomplished through the use of a Forward Agreement with one or more counterparties.

The actual breakdown of distributions for tax purposes will be provided to unitholders annually in February. This information will also be posted on the website as soon as it is available.

This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.

2007 Tax Allocation

BG Advantaged S&P/TSX Income Trust Index Fund is pleased to provide the following information to assist its unitholders in the preparation of their Income Tax Returns. This information is applicable to holders who, for the purposes of the Income Tax Act (Canada), are resident in Canada and hold trust units as capital property. If this is not the case, a tax advisor should be consulted.

Holders of trust units outside of a registered retirement savings plan, registered retirement income fund or deferred profit sharing plan should expect to receive a T3 slip from their investment dealer. T3 supplementary slips will indicate Foreign Non-Business Income in Box 25, Investment in Box 26, Capital Gains in Box 21, Dividend Income in Box 23 and Box 49 and Return of Capital in Box 42. Dividend income will be subject to the standard gross up and federal dividend tax credit rules.

The return of capital component is a non-taxable amount that serves to reduce the adjusted cost base of the fund units.

Please select year to display the breakdown of the cash distributions payable in 20072006200520042003 on a per unit basis.