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## Management Report of Fund Performance 

This annual management report of fund performance contains the financial highlights for the year ended December 31, 2010 of Core Canadian Dividend Trust (the “Fund”). The annual financial statements of the Fund are attached. 

Copies of the Fund’s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure may be obtained by calling 1-800-725-7172 toll-free, or by writing to the Fund at Investor Relations, 121 King Street West, Suite 2600, Toronto, Ontario, M5H 3T9, or by visiting our website at www.mulvihill.com. 

## Investment Objectives and Strategies 

The Fund’s investment objectives are to: 

(i) provide unitholders with a stable stream of monthly distributions targeted to be 6.5 percent per annum on the net asset value (“NAV”) of the Fund; and 

(ii) preserve and grow the NAV per unit. 

The Fund invests in a blue chip portfolio consisting of fifteen high quality, large capitalization, dividend paying Canadian companies across multiple industry sectors that have an excellent long-term track record of dividend growth and share price appreciation. The Fund will generally invest not less than 4 percent and not more than 10 percent of the NAV in each security comprising the Core Canadian Dividend Portfolio, as well as, up to 15 percent in other securities listed on the Toronto Stock Exchange. 

To generate additional returns, the Fund may, from time to time, write covered call options in respect of all or part of the securities in the portfolio. In addition, the Fund may write cash covered put options in respect of securities in which the Fund is permitted to invest. 

## Risk 

Risks associated with an investment in the units of the Fund are discussed in the Fund’s 2010 annual information form, which is available on the Fund’s website at www.mulvihill.com or on SEDAR at www.sedar.com. There were no changes to the Fund over the year that materially affected the risks associated with an investment in the units of the Fund. 

## Summary of Investment Portfolio 

The composition of the portfolio may change due to ongoing portfolio transactions of the Fund. A quarterly update is available on our website at www.mulvihill.com. 

## Asset Mix 

December 31, 2010 

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