Distributions from the Fund may have been primarily return of capital which offers tax benefits which result in higher after-tax cash flow than if the income had been earned as interest income.

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 actual breakdown of capital units distributions for tax purposes will be provided to unitholders annually in March. 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

The following information is applicable to holders who, for the purpose of the Income Tax Act (Canada), are resident in Canada and hold Fund units as capital property outside of an RRSP, RRIF or DPSP. Unitholders should receive a T3 slip from their investment dealer providing this information.

T3 supplementary slips for holdings of the Fund will indicate Foreign Non-Business Income in Box 25, Other Taxable Income in Box 26, Capital Gains in Box 21 and Dividend Income in Box 49. Dividend income is 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 Fund units and is reported on the T3 supplementary slips in Box 42.

The following table outlines the breakdown of the Fund's distributions declared in 2007 on a per unit basis.

Please select year to display the breakdown of the cash distributions payable in 2007200620052004200320022001 on a per unit basis.

For years prior to 2006 tax information is for YEARS Trust. Historical information for YEARS U.S. Trust.

Select year to display tax information history 2007200620052004200320022001 on a per unit basis.

Note (1): Distribution was paid in US dollars, but T3 slips were issued in Canadian dollars. The columns reflects the exchange rate that was applied.