FUND DESCRIPTION::
diversiYield Income Fund is a closed-end trust that will invest in an actively managed portfolio comprised primarily of Income Trusts and High Yield Debt Securities.

INVESTMENT OBJECTIVES::
(i)Monthly Distributions: to provide Unitholders with a stable stream of monthly cash distributions initially targeted to be $0.0604 per Trust Unit (approximately 7.25% per annum on the original issue price of $10.00 per Trust Unit);


(ii)Capital Repayment: to return the original issue price of the Trust Units to Unitholders upon termination of the Fund on December 31, 2015 (the ‘‘Termination Date’’); and

(iii)Capital Appreciation: to provide Unitholders with an opportunity for capital appreciation

FUND FEATURES ::
Attractive Asset Classes
- income trusts and high yield bonds represent high yielding asset classes that have in the past typically demonstrated attractive risk-return profiles and low correlations to one another. Effective allocation between these two asset classes may result in diminished volatility over the term of the Fund.
Risk Control Mechanism
-the Fund will have the ability to use derivatives to hedge the portfolio against various risks, including interest rates, commodity prices and credit risks as well as exchange rate changes (with at least 50% of the Fund's foreign currency exposure hedged to the Canadian dollar). The Fund may also engage in short selling, limited to 10% of total assets, of securities that the Manager and the Sub-Advisor consider to be overvalued.
Leverage
- the Fund will utilize a prudent level of leverage in order to enhance the Fund's total return.
Mandatory Purchase Program
- the Fund will purchase units in the market if prices that are less than 95% of the latest NAV per trust unit (see prospectus for more details).
Liquidity
-units of the Fund can be sold on the Toronto Stock Exchange or commencing in November of 2006, redeemed at 100% of NAV per trust unit as of the date of redemption