G.I.

Alternative Income Strategy June 2011

www.gicapital.ca

G.I. Capital Corp.

G.I. Capital Corp. (GI) is a wealth management firm specializing in developing customized investment solutions for its clients. We are a boutique firm focused on managing our clients portfolios, offering a high level of research and service to a limited number of clients. Our client base consists of professionals, executives and business owners.

G.I. Alternative Income Strategy

The Alternative Income Strategy is an alternative to traditional bond funds that trade in publicly traded securities, which although carry very low credit risk, currently have minimal return. The Alternative Income Strategy seeks to invest in alternative income strategies like private mortgages and asset backed loans that offer higher returns, while still providing reasonable security to cover the loans. The strategys objectives are to preserve capital, minimize volatility, have a low or zero correlation with stock and bond markets, and achieve an annualized return of 8-10% net of all fees.

Year 2010 2011

Jan -0.63%

Feb -0.68%

Mar -1.33%

Portfolio Performance for Alternative Income Strategy Apr May Jun Jul Aug Sep Oct ---0.84% 0.78% 0.87% 0.80% 0.91% 0.72% 1.91%

Nov 0.83%

Dec 0.54%

YTD 4.75% 6.33%

Portfolio Breakdown by Allocation

Security Type First Mortgage Subordinated First Second Mortgage Real Estate Equity Asset Backed Loans Cash Percentage Weighting 9.3% 41.4% 24.4% 17.1% 8.3% -0.5% 100.0% 64% 60% 74% n.a. 50% 0% Loan To Value Ratio Average Expected Maturity (Months) 18 40 5 47 6 0 Average Expected Yield 11.3% 12.7% 11.6% 10.0% 13.0% 0.0% 11.3%

Fund Stats Weighted Average Yield 11.35% G.I. Capital Corp. Mark Irwin, CFA
Managing Director and Portfolio Manager

Weighted Average LTV Ratio 57.45%

E-mail: Tel: Web:

Weighted Average Maturity (Months) 28

mark.irwin@gicapital.ca 647-776-4028 www.gicapital.ca

This monthly update does not constitute or purport to constitute a complete description of the G.I. Capital Corp. Alternative Investment Strategy and is in all respects subject to the more detailed provisions found in the fund's declaration of trust. The Alternative Income Strategy is only available to GI clients who have engaged GI to manage their account under the alternative income mandate as outlined in their investment policy statement. The returns above are net of all fees, other than management fees. The references to the target rates of return are provided for illustrative purposes only and there can be no assurance that the fund will be able to achieve the targeted rates of return.