CIFP Annual National Conference 2004

2. GGOF Guardian Group of Funds Established in 1962 $3.9 billion in assets under management Global investment management expertise through 9 leading organizations: Guardian Capital Inc. (GCI) manages our existing Canadian Funds, using the �growth at reasonable prices� (GARP) discipline. Greystone is a �growth� manager, and their addition now provides us with growth style coverage in Canada. On the international front, Lazard Asset Management of New York manages our two American Funds, the foreign content portion of our Canadian Balanced Fund, and our Emerging Markets Fund using a �value� approach. Dresdner RCM Global Investors manages our remaining international Funds using a �growth� style. Investors now look to large mutual fund complexes such as Guardian Group of Funds to provide a full product line, diversified along asset class, geography, and style lines. Over the last two years, we�ve introduced a number of new Funds to round out our product line and provide this diversification. The relationship with Greystone and the launch of the Alexandria Mutual Funds line represents the latest step in this strategy of providing style diversification. Style diversification is becoming increasingly important and several of our competitors have already begun providing this diversification. This is the reason why we�ve chosen to emphasize this new product line. Guardian Capital Inc. (GCI) manages our existing Canadian Funds, using the �growth at reasonable prices� (GARP) discipline. Greystone is a �growth� manager, and their addition now provides us with growth style coverage in Canada. On the international front, Lazard Asset Management of New York manages our two American Funds, the foreign content portion of our Canadian Balanced Fund, and our Emerging Markets Fund using a �value� approach. Dresdner RCM Global Investors manages our remaining international Funds using a �growth� style. Investors now look to large mutual fund complexes such as Guardian Group of Funds to provide a full product line, diversified along asset class, geography, and style lines. Over the last two years, we�ve introduced a number of new Funds to round out our product line and provide this diversification. The relationship with Greystone and the launch of the Alexandria Mutual Funds line represents the latest step in this strategy of providing style diversification. Style diversification is becoming increasingly important and several of our competitors have already begun providing this diversification. This is the reason why we�ve chosen to emphasize this new product line.

3. A New Era of Single-Digit Returns Moderate growth and inflation looking forward Single-digit return expectations for most Canadian asset classes in the next few years Stock market leadership requires powerful earnings momentum Current income a much larger portion of total returns

7. Why would anyone buy government bonds today? Either in Canada�.

8. Why would anyone buy government bonds today? �.or in the U.S.?

9. Investors have received equity type returns in bonds over the last 3 years

10. Reasons to Consider �Non-Traditional� Income Alternatives Coupon returns for traditional income products Promising outlook for income products with equity-like characteristics Well-developed markets now for �non-traditional� income products Value of low or non-correlated asset classes

11. Non-traditional Income Alternatives Preferred shares High yield bonds Income trusts Dividend-paying common shares

12. Preferred Shares Exchangeable, retractable and floating rate preferred shares provide: stable, tax-effective income low volatility $1.00 of dividend income and $1.25 - $1.30 of interest income both produce the same after-tax income Dividends provide yield support, which contributes to price stability High quality (P1/P2) preferred share market shrinking Be careful: Know what you are buying because issue features vary greatly

13. What are High Yield Bonds?

17. High Yield Bonds Dual nature helps performance in all market environments Interest-sensitive nature causes price appreciation when interest rates fall Stronger economies that produce rising rates also benefit high yield issuer companies Low correlation with other asset classes provides diversification benefits Total returns driven by income, not capital gains Keys are credit analysis and issuer knowledge Fund eliminates most of the single issuer risk

18. Income Trusts Power and Pipeline Trusts utility type income Real Estate Investment Trusts (REITs) produce rental income Royalty Trust Units (RTUs) produce resource royalty income Business Trust Units (BTUs) produce business income Return of Capital (ROC) is very tax-efficient Tax liability is deferred Ultimately paid at lower capital gains rate Can act as an inflation hedge Low correlation with other asset classes provides diversification

27. In an era of modest equity returns, dividends are an important component of total return. $1.00 of dividend income and $1.25 - $1.30 of interest income both produce the same after-tax income Dividend yield provides greater stability than non dividend-paying shares Good companies with skilled management and dominant industry positions create capital and dividend growth

28. Fund Structure

29. Fund Benefits Provides tax-advantaged monthly income of 3.5 cents Comprised of four separate asset classes � 25% in each asset class Asset classes show little correlation with each other, ensuring superior diversification benefits Provides an easy, convenient way to invest in one product based on 4 successful GGOF funds Managers among the best in Canada John Priestman/Kevin Hall (Guardian Capital) Steve Kearns (Guardian Capital) Michael Stanley (Jones Heward)

33. ASIA The Case for Asia

39. US Imports from Asia

40. Private Sector Development

41. China�s Growing Consumer Demand

42. Boom in Foreign Direct Investment

44. Fund Performance