Flaherty & Crumrine Investment Grade Fixed Income Fund provided earnings guidance for the year ending December 31, 2012. For the year ending December 31, 2012, the Fund estimates that it will generate income of approximately $0.08 per unit in excess of its previously announced distributions for the year.

As a result, the Fund announced a special distribution estimated to be $0.08 per unit to unit holders of record at the close of business on December 31, 2012. The distribution consists of (i) a cash distribution in the amount of $0.04 per unit which approximates the income taxes payable (by taxable holders of the Fund) on the special distribution of income based on the highest marginal Ontario tax rate; and (ii) a distribution estimated to be $0.04 per unit that will be automatically reinvested in additional units to be determined based on the net asset value per unit as of December 31, 2012. The estimated amount of $0.04 per unit of automatic reinvestment may change depending on any other transactions occurring before year end. Immediately following issuance, the units of the Fund will be automatically consolidated and as a result, unit holders will hold the same number of units after the distribution as they held before it. The adjusted cost base of a holder's units will be increased by the amount of the distribution reinvested in units as of December 31, 2012. The payment date for the cash distribution will be January 15, 2013.