High Yield & Mortgage Plus Trust is an investment trust established in November 2003 with the objective of providing investors with a stable stream of tax efficient monthly distributions amounting to 7.5% or $1.875 per unit annually, and returning at least the original subscription price of the units to unitholders on the termination date of December 31, 2014. The return to the trust and its investors will be dependent upon the return on the High Yield and Mortgage Portfolio by virtue of a forward agreement. The High Yield and Mortgage Portfolio will consist primarily of an actively managed portfolio of high yield debt instruments, including corporate bonds, bank loans and Canadian commercial mortgage backed securities. It is expected that initially between 10% and 20% of the High Yield and Mortgage Portfolio will consist of Canadian commercial mortgage backed securities, and that at any time up to 30% of the High Yield and Mortgage Portfolio may consist of Canadian commercial mortgage backed securities.

The High Yield and Mortgage Portfolio will be diversified by company, industry, geography and rating category. Canadian or U.S. government debt and/or cash equivalents may be held from time to time as market conditions dictate. Securities in the High Yield & Mortgage Portfolio are selected based on, among other criteria, their expected return relative to risk characteristics, taking into consideration factors such as maturity, duration, industry, credit rating and currency risks.

HIGHLIGHTS:

11-year instrument with tax-effective monthly distributions - target 7.5% per annum

• Significant portion of the distributions will consist of capital gains and/or return of capital, resulting in tax-effectiveness.



• Targeted monthly distribution is expected to be supportable on underlying yield alone.



• Any additional net income or net realized gains will be paid out as a special distribution at the end of any year.
  

First-class portfolio management

• Marret Asset Management Inc. is the Investment Advisor for t he High Yield & Mortgage Plus Trust.



• The portfolio manager of the Investment Advisor who will be primarily responsible for the High Yield & Mortgage Portfolio will be Mr. Barry Allan. Mr. Allan is the founder, President, Chief Executive Officer, Chief Investment Officer and a Director of the Investment Advisor. Mr. Allan has over 24 years of experience in the investment field including six years as a manager of fixed income securities at Altamira Management Ltd.



• The due diligence on the real estate backing the Commercial Mortgage-Backed Securities investments will be provided by ACM Advisors Ltd., a Vancouver-based firm retained by the Investment Advisor and specializing in making real estate and mortgage investments for high net worth and institutional pension investors since 1994, and in an associated entity since 1992.
  
• The ACM group (which includes ACM) was co-founded in 1987 by Messrs. Gordon Allan and Allan Collings. Mr. Allan has been involved in real estate financing, consulting and management services for more than 27 years and leads a group of seven investment professionals at ACM who have over 100 years of combined experience.
  

Liquidity

• Listing on the TSX (HYM.UN), market purchase programs and annual redemptions at NAV.