Aurion Capital Management is an independent, institutional investment management firm. Aurion currently has over $2.8 billion of assets under management in Canadian equities, Canadian fixed income, real return bonds, derivative-based international equity mandates and real estate advisory services. Total assets within the pension fund outsourcing product were $2.2 billion. Aurion currently offers the following institutional and portfolio management products:

Canadian Equities
Aurion believes that value can be added by constructing an Index-relative portfolio with amodest growth bias and by active trading around established equity positions. For the 10-year period ended December 31, 2003, Aurion’s composite return of 11.1% perannum exceeded the S&P/TSX Index by 250 basis points per annum.

Canadian Core Fixed Income
Aurion uses the four main value added strategies for bond portfolio management: duration, curve positioning, sector allocation and security selection. For the 10-year period ended December 31, 2003, Aurion’s composite return of 7.9% per annum exceeded a customized benchmark1 by 22 basis points per annum.

Canadian Corporate Fixed Income
Aurion offers a corporate bond product that uses the four main value added strategies forbond portfolio management, being duration, curve positioning, sector allocation and security selection. The value added target for corporate bond management relative to the SC Corporate Bond Index is 50 basis points per annum over four rolling periods.

Canadian Real Return Bonds
Aurion offers an active real return bond strategy that we believe is unique in Canada. Thestrategy uses three value added levers:

• Active duration management against the SC RRB Index;
• Arbitrage trading with currency-hedged investments in US Treasury Inflation-indexed Securities (referred to as ‘US TIPS’); and
• Break-even trading between real return bonds and long nominal Canada bonds.

As at December 31, 2003, Aurion managed about $400 million in active real return bonds. The value added target for active real return bond management is client specific.

Real Estate Advisory
Aurion offers real estate advisory services to institutional investors. The Company takes a unique approach, by focusing on portfolio management services, which include strategic portfolio planning, investment policy formulation and portfolio advisory services. Aurion manages about $130 million in real estate advisory services. The value added target for active management is client-specific. For the 10 year period ended December 31, 2003, Aurion’s composite return for real estate of 8.5% per annum exceeded a client-specific benchmark of CPI + 5% by 170 basis points per annum.

Pension Fund Outsourcing
Aurion has developed a comprehensive pension fund outsourcing solution. This solution is designed to help corporate pension fund executives and investment officers manage defined benefit and defined contribution pension plans. Under the outsourcing solution, Aurion can customize the array of services provided. In the most comprehensive form, outsourcing would include the management of all activities other than benefit and plan design, for a single all-inclusive fee. In other structures, outsourcing could include various facets of the investment management program from the development of an Investment Policy and asset mix to manager performance assessment and fund reporting with an unbundled fee arrangement.

Taylor-DeJongh (TDJ) is an independent specialist merchant banking firm with offices in Washington, D.C. and London, England. TDJ has a 20 year track record in providing capital structuring advice combined with successful transactional structuring and arranging of financings for major corporations in the industries of power generation; oil and gas; petrochemicals; pipelines; LNG; metals and mining; telecommunications; water and wastewater treatment; transportation; and infrastructure. TDJ has arranged financings with virtually all major international banks, and have expertise placing debt and equity with institutional investors and trading companies worldwide. Taylor-DeJongh has ranked consistently in the top 10 Financial Advisors globally since 1995. In 2003, Infrastructure Journal's year-end league table ranked TDJ as the #1 Oil and Gas advisor and #1 Power advisor globally. TDJ was also named "2003 Oil & Gas Financial Advisor of the Year". In 2002, TDJ also ranked in the top four for total number of mandates won by number and value. In addition, TDJ ranked in the top four advisors in every regional market in the league tables.