Cumberland Income Fund First Quarter 2014 Review and Outlook

The Cumberland Income Fund gained +2.1% during the first quarter of 2014 compared to the gain of +2.8% posted by the FTSE TMX Canada Universe Bond Index during the same period. On a year over year basis, the Fund has gained +4.7% while the FTSE TMX Index has gained +0.8%. There was a “flight to safety” tone in the bond market during the quarter, triggered by weaker than expected economic data and geopolitical concerns, resulting in declining interest rates (bond yields) and consequently higher bond prices. These concerns were partially offset by a signal from the U.S. Federal Reserve that the interest rate tightening cycle may start earlier than expected. At Cumberland, we continue to maintain our view that bond yields will drift higher over the medium term putting downward pressure on bond prices, brought about by a gradually improving global economy and the Federal Reserve’s gradual exit from its bond buying program (Quantitative Easing or QE). Consistent with our strategy in recent quarters we have maintained our focus on preserving capital by keeping the Fund’s duration low (thereby keeping the sensitivity of bond price changes due to changes in interest rates low). Moreover, the Fund continues to generate income by holding higher-yielding corporate bonds, preferred shares, and dividend-paying common equities that have attractive risk/reward characteristics, in our view.

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Cumberland Income Fund 2013 Year End Review and Outlook

The Cumberland Income Fund gained +1.7% during the fourth quarter of 2013 compared to the gain of +0.4% posted by the DEX Universe Bond Index during the same period. Forthe year ended 2013,the Fund gained +4.5% while the DEXdeclined -1.2%. Erratic economic data and changes to both U.S. fiscal and monetary policy contributed to another quarter of heightened volatility in bond yields. But ultimately, it was the U.S. Federal Reserve’s pre-Christmas announcement of the muchspeculated reduction of its bond purchase program (the “taper”) that drove up bond yields to levels not seen for two-and-a-half years. The change in U.S. monetary policy caused investors to sell government bonds, driving bond prices lower. During the quarter, Cumberland maintained its focus on preservation of capital in anticipation of the likely inevitable rise in interest rates. The Income Fund’s strategy has been to keep duration low (lower sensitivity to changes in bond prices due to changes in interestrates) and to selectively allocate to higher yielding corporate bonds, preferred shares, and dividend-payin

Cumberland Income Fund 3rd Quarter 2013 Review and Outlook

The Cumberland Income Fund gained +1.1% during the third quarter of 2013 compared to the gain of +0.1% posted by the DEX Universe Bond Index during the same period. The Fund has gained +2.8% year to date and +4.0% year over year, while the DEX has declined -1.6% yearto date and -1.3% year over year. The bond market’s heightened volatility that began last quarter spilled over into Q3 in earnest as interest rates continued on an upward trajectory. The Fund was able to dampen much of the volatility by continuing to keep duration (bond price sensitivity to interest rate movements) low, maintaining the weighting in floating rate notes (FRNs) relatively high (23% of the Fund), and ensuring that the portfolio remained diversified by holding securities that offer attractive risk / reward characteristics, in our view.

Cumberland Income Fund Second Quarter 2013 Review and Outlook

The Cumberland Income Fund declined -0.17% during the second quarter of 2013 compared to the decline of -2.36% posted by the DEX Universe Bond Index during the same period. The Fund has gained +1.65% year to date and +4.7% year over year, while the DEX has declined -1.68% year to date and -0.2% year over year. Comments made by U.S. Federal Reserve Chairman Ben Bernanke along with Japan’s outrageously aggressive monetary policy of doubling their money supply overthe next two years caused a significant pickup in volatility in global bond markets during the second quarter. The Fund’s short duration, floating rate note (FRN) holdings, and cash position shielded the Fund from a quarter that was generally characterized by declining bond prices and rising yields.

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Cumberland Income Fund First Quarter 2013 Review and Outlook

Cumberland Private Wealth Management Inc. 99 Yorkville Avenue, Suite 300, Toronto, Ontario, Canada M5R 3K5 The Cumberland Income Fund generated a return of +1.8% for the first quarter of 2013. By comparison, the DEX Universe Bond Index generated a return of +0.7% overthe same period. The Fund’s dividend paying equity allocation and income generated from the higher yielding corporate bonds were the main contributors to the performance this quarter.To a lesser extent,the Fund was also a beneficiary of the slight decline in Canadian interest rates that occurred during the quarter.

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