June 30th, 2013

Income Review

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.