January 17th, 2014

Income Review

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