Yield Advantage Income Trust is an investment trust established in March 2005 with the objective of:

• Providing unitholders with tax-efficient monthly distributions consisting primarily of capital gains and return of capital initially targeted at 7%.
• Preserving and enhancing the Trust's net asset value in order to return at least the original subscription price of $10.00 per unit upon termination on December, 31, 2015.

The Trust is designed to achieve its objectives through exposure to an actively managed portfolio of income trusts, high-yield debt and other securities.

• Under normal market conditions, the portfolio will consist primarily of securities of income trusts and high-yield debt.
• Up to 20% of the net asset value may be invested in other securities, including common shares, preferred shares, convertible debentures and bonds to provide a desired level of diversification, stability and growth potential.

The Trust intends to pay monthly distributions. The Trust will annually determine and announce each March an Indicative Distribution amount for the following 12 months based upon the prevailing market conditions and the Manager's estimate of distributable cash flow for the year. The Indicative Distribution for the first 12 months is $0.70 per Unit representing a yield of 7.0% based on the $10.00 per Unit issue price.

Highlights:

Ten-year instrument with tax-effective monthly distributions - target 7.0% per annum

• Indicative distribution for the first 12 months will represent a yield of 7.0%, paid monthly.
• Tax-efficient monthly distributions through the use of a forward structure for exposure to the portfolio, which results in capital gains or return of capital treatment.

First-class Portfolio Management and Proven Fund Managers

The investment strategy involves an active asset allocation investment approach focused primarily on income funds and high yield debt, along with other securities, including common shares, preferred shares, convertible debentures and bonds to provide a desired level of diversification, stability and growth potential.

Eric Bushell

• Eric
• Bushell is a Senior Vice-President, Portfolio Management and Chief Investment Officer at Signature Funds Group.
• Mr. Bushell has over 10 years of investment experience and was a finalist for Fund Manager of the Year at the 2001 Canadian Mutual Fund Awards.
• He manages the Signature Select Canadian Fund, which had assets in excess of $1.6 billion at December 31, 2003. This fund invests primarily in common shares, preferred shares that pay regular income, and convertible securities of Canadian companies.
• Signature Select Canadian Fund has performed strongly in recent years.

Disclaimer
Please read important information about the trust.