Distributions from the Fund have significant tax benefits which results in higher after-tax cash flow than if the income had been earned as interest income. Many of the issuers of the securities in which the Fund invests are entitled to tax deductions relating to the nature of their assets, with the result that their cash distributions are anticipated to exceed the amount required to be included in the income of the recipients. As a result, cash distributions received by unitholders from the Fund in a year are generally expected to exceed the amount required to be included in their income for tax purposes thereby deferring the tax payable on that excess amount.

The impact of the tax deferral is that the amount of the distribution that is tax deferred will reduce the adjusted cost base of the unitholder's trust units. The reduction in the adjusted cost base of the units is ultimately taxed as a capital gain when the units are sold for investors who hold their units as capital property.

The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March as soon as possible following receipt of the information from the Fund's individual holdings. This information will also be posted on the website as soon as it is available.

2005 Tax Allocation

Brompton MVP Income 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, Other Taxable Income in Box 26, Capital Gains in Box 21, Dividend Income in Box 23 and Return of Capital in Box 42. Dividend income will be subject to the standard gross up and federal dividend tax credit rules and is now reported on the T3 supplementary slips in Box 39.

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 2005200420032002 on a per unit basis.