Conversion to Open-End Fund Details:

Effective June 26, 2009, Focused 40 Income Fund converted from a closed-end fund to an open-end mutual fund. Units of the fund were converted to units of the IA Clarington Tactical Income Fund (formerly the IA Clarington Diversified Income Fund) open-end fund having the same net asset value. This was a taxable event. The cost of units of the IA Clarington Tactical Income Fund received were their fair market value at the time of the merger.