Utility Split Trust has been created to provide investors with exposure to a diversified investment in securities of utility issuers, utilizing the split security structure on a low cost basis. The investment advisor will select utility issuers which it believes offer attractive risk-adjusted return potential from stable distributions and dividends, and the opportunity for capital appreciation. Utility issuers include, among others, corporations or income trusts that generate, transmit and/or distribute electricity, water and/or natural gas, including, corporations or income trusts that supply the raw materials required for the generation of electricity.

The Trust’s investment objectives are:

• Preferred Securities: (a) to provide securityholders, in priority to any distributions on Capital Units, fixed quarterly interest payments equal to 6.0% per annum on the $10.00 principal amount; and (b) to repay to securityholders, on or about December 31, 2011 in priority to any return to holders of Capital Units, the original subscription price of $10.00. The Preferred Securities have been provisionally rated Pfd-2 (low) by Dominion Bond Rating Service Limited.
  
  

• Capital Units: (a) to pay tax efficient monthly distributions, initially expected to represent a yield of 7.25% per annum on the initial purchase price, based on the dividends and distributions that the Trust receives on the portfolio, and (b) to provide unitholders with the opportunity to participate in the performance of the portfolio on a leveraged basis and to benefit from any increase in the dividends or distributions paid by utility issuers held in the portfolio.