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## Letter to Unitholders 

We are pleased to present the 2010 annual report containing the management report of fund performance and the financial statements for Core Canadian Dividend Trust (the “Fund”). 

The Fund is a closed-end investment trust designed to 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 to preserve and grow the NAV. The units are listed on the Toronto Stock Exchange (“TSX”) under the ticker symbol CDD.UN. To accomplish its objectives the Fund invests in a blue chip portfolio consisting of fifteen high quality, large capitalization, and 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 TSX. To generate additional returns above the dividend income earned on the Fund’s investment portfolio, the Fund may, from time to time, write covered call options in respect of some or all of the securities in the portfolio. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest. 

During the fiscal year ended 2010, the annual total return of the Fund, including reinvestment of distributions, was 9.9 percent. Distributions of $0.48 per unit were paid to unitholders during the year and the NAV increased from $7.40 per unit as at December 31, 2009 to $7.63 per unit as at December 31, 2010. For a more detailed review of the operations of the Fund, please see the Results of Operations and the Portfolio Manager Report sections. 

We thank all unitholders for their continued support and encourage unitholders to review the more detailed information contained within the annual report. 

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