Royalty Trusts

• Potential Index constituents are Canadian royalty trusts that are listed on the TSX.

• Currently there are over 30 royalty trusts listed on the TSX that are classified as oil and gas producers.

• The potential Index constituents are then narrowed to a universe of companies that have a minimum market capitalization of $500 million and whose shares have traded an average of $2 million per day in value over the last 100 trading days, three years history of profit growth and an annual income distribution yield of 3% or higher.

• The Index constituents are weighted according to a proprietary formula that accounts for historical profit growth, income yield, market capitalization and liquidity. For instance, a royalty trust with a strong track record of profit growth, high current yield and a large market capitalization and liquidity will have a substantial weighting in the Index. The factors with the most influence on the Index weightings are historical profit growth and yield.

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