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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