Core Canadian Dividend Trust [cdd.un] Management Report of Fund Performance Management Report of Fund Performance Investment Objectives and Strategies This annual management report of fund performance contains the financial highlights for the year ended December 31, 2010 of Core Canadian Dividend Trust (the “Fund”). The annual financial statements of the Fund are attached. Copies of the Fund’s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure may be obtained by calling 1-800-725-7172 toll-free, or by writing to the Fund at Investor Relations, 121 King Street West, Suite 2600, Toronto, Ontario, M5H 3T9, or by visiting our website at www.mulvihill.com. The Fund’s investment objectives are to: The Fund invests in a blue chip portfolio consisting of fifteen high quality, large capitalization, dividend paying Canadian companies across multiple industry sectors that have an excellent long-term track record of dividend growth and share price appreciation. The Fund will generally invest not less than 4 percent and not more than 10 percent of the NAV in each security comprising the Core Canadian Dividend Portfolio, as well as, up to 15 percent in other securities listed on the Toronto Stock Exchange. To generate additional returns, the Fund may, from time to time, write covered call options in respect of all or part of the securities in the portfolio. In addition, the Fund may write cash covered put options in respect of securities in which the Fund is permitted to invest. (i) provide unitholders with a stable stream of monthly distributions targeted to be 6.5 percent per annum on the net asset value (“NAV”) of the Fund; and (ii) preserve and grow the NAV per unit. Risk Summary of Investment Portfolio Risks associated with an investment in the units of the Fund are discussed in the Fund’s 2010 annual information form, which is available on the Fund’s website at www.mulvihill.com or on SEDAR at www.sedar.com. There were no changes to the Fund over the year that materially affected the risks associated with an investment in the units of the Fund. The composition of the portfolio may change due to ongoing portfolio transactions of the Fund. A quarterly update is available on our website at www.mulvihill.com. December 31, 2010 Asset Mix % OF NET ASSET VALUE Financials 47 % Energy 28 % Materials 13 % Cash and Short-Term Investments 12 % Industrials 8 % Utilities 8 % Telecommunication Services 7 % Consumer Discretionary 6 % Other Assets (Liabilities) (29)% 100 % Annual Report 2010 2