Management Report of Fund Performance Core Canadian Dividend Trust [cdd.un] Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance from its inception on November 16, 2006. Since 2007 the net assets per unit presented in the financial statements differs from the net asset value per unit calculated weekly, primarily as a result of investments being valued at bid prices for financial statements purposes and at closing prices for weekly net asset value purposes. Years ended December 31 (1) Net assets per unit is the difference between the aggregate value of the assets of the Fund and the aggregate value of the liabilities on that date date and including the valuation of securities at bid prices divided by the number of units then outstanding. For years prior to 2007, securities were valued at closing prices. (2) Total increase (decrease) from operations consists of interest and dividend revenue, realized and unrealized gains (losses), less expenses and is calculated based on the weighted average number of units outstanding during the year. The schedule is not intended to total to the ending net assets as calculations are based on the weighted average number of units outstanding during the year. (3) Distributions to unitholders are based on the number of units outstanding on the record date for each distribution and were paid in cash. (4) For the period from inception on November 16, 2006 to December 31, 2006. (5) Net of agent fees and initial issue costs. 2010 2009 2008 2007 2006 (4) THE FUND’S NET ASSETS PER UNIT Net Assets, beginning of period (based on bid prices) $^{(1)}$$ 7.39 $ 6.38 $ 8.77 $ 9.66 $ 9.38 (5) INCREASE (DECREASE) FROM OPERATIONS Total revenue 0.26 0.23 0.27 0.29 0.05 Total expenses (0.22) (0.24) (0.18) (0.19) (0.03) Realized gain (loss) for the period 0.20 (1.15) (0.57) 0.28 – Unrealized gain (loss) for the period 0.47 2.60 (1.38) (0.66) 0.32 Total Increase (Decrease) from Operations (2) 0.71 1.44 (1.86) (0.28) 0.34 DISTRIBUTIONS Non-taxable distributions (0.48) (0.43) (0.53) (0.62) (0.05) Total Annual Distributions (3) (0.48) (0.43) (0.53) (0.62) (0.05) Net Assets, as at December 31 (based on bid prices) (1) $ 7.61 $ 7.39 $ 6.38 $ 8.77 $ 9.66 Net Asset Value ($millions) (1) $ 13.96 $ 17.29 $ 18.84 $ 37.33 $ 57.93 Number of units outstanding (1) 1,831,294 2,335,451 2,949,146 4,248,271 6,000,000 Management expense ratio ($millions) (2) 2.64% 3.21% 2.08% 1.95% 1.86% (5) Portfolio turnover rate (3) 164.67% 117.23% 75.04% 59.91% 1.82% Trading expense ratio (4) 0.35% 0.36% 0.15% 0.10% 0.87% (5) Net Asset Value per unit (6) $ 7.63 $ 7.40 $ 6.39 $ 8.79 $ 9.67 Closing market price $ 7.15 $ 6.98 $ 5.25 $ 8.05 $ 9.95 RATIOS/SUPPLEMENTAL DATA (1) This information is provided as at December 31. (2) The management expense ratio (“MER”) is the sum of all fees and expenses, including federal and provincial sales taxes and excluding transaction fees charged to the Fund divided by the average net asset value. The MER for 2010 includes the warrant exercise fees. The MER for 2010 excluding the warrant exercise fees is 2.63%. The MER for 2009 includes the warrant offering costs. The MER for 2009 excluding the warrant offering costs is 2.42%. (3) Portfolio turnover rate is calculated based on the lesser of purchases or sales of investments, excluding short-term investments, divided by the average value of the portfolio securities. The Fund employs an option overlay strategy which can result in higher portfolio turnover by virtue of option exercises, when compared to a conventional equity mutual fund. (4) Trading expense ratio represents total commissions expressed as a percentage of the daily average net asset value during the period. (5) Annualized. (6) Net asset value per unit is the difference between the aggregate value of the assets of the Fund and the aggregate value of the liabilities and including the valuation of securities at closing prices divided by the number of units then outstanding. Mulvihill Fund Services Inc. (the “Manager” or “Mulvihill”) amalgamated with Mulvihill Capital Management Inc. (the “Investment Manager” or “MCM”) on September 1, 2010. As successor, MCM became the Manager of the Fund. MCM is entitled to fees under the Investment Management Agreement calculated monthly as 1/12 of 1.00 percent of the net asset value of the Fund at each month end. Services received under the Investment Management Agreement include the making of all investment decisions and writing of covered call options in accordance with the investment objectives, strategy and criteria of the Fund. MCM also makes all decisions as to the purchase and sale of securities in the Fund’s portfolio and as to the execution of all portfolio and other transactions. MCM, as the Manager, is entitled to fees under the Trust Agreement calculated monthly as 1/12 of 0.10 percent of the net asset value of the Fund at each month end. Services received under the Trust Agreement include providing or arranging for required administrative services to the Fund. Management Fees 4 Annual Report 2010