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## Credit Risk 

The Fund is subject to the credit risk that its counterparty (whether a clearing corporation, in the case of exchange traded instruments, or other third party, in the case of over-the-counter instruments) may be unable to meet its obligations. The Fund manages these risks through the use of various risk limits and trading strategies. 

The credit risk is mitigated by dealing with counterparties that have a credit rating that is not below the level of approved credit ratings as set out in National Instrument 81-102. 

The following are the credit ratings for the counterparties to derivative financial instruments that the Fund dealt with during the current and prior year, based on Standard & Poor's credit ratings as of December 31, 2010 and 2009: 

<img src='content_image/263545.jpg'>

The following is the credit rating for short-term investments held by the Fund based on Standard & Poor’s credit ratings as of December 31, 2010 and 2009: 

<img src='content_image/263546.jpg'>

The carrying amount of these investments represents their maximum credit risk exposure, as they will be settled in the short-term. 

12. Future Accounting Policy Changes 

The Fund was required to adopt International Financial Reporting Standards (“IFRS”) for the year beginning on January 1, 2011. However, the Canadian Accounting Standards Board approved a two year deferral from IFRS adoption for investment companies applying Accounting Guideline 18 - Investment Companies (“AcG-18”). As a result, the Fund will adopt IFRS for the year beginning on January 1, 2013 and will issue its initial statements on a comparative basis for the interim period ending June 30, 2013. 

## 18 

## Annual Report 2010 

