Merrill Lynch Investment Managers Canada Inc. is proposing to expand the investment objectives of the Merrill Lynch Internet Strategies Fund and the Merrill Lynch Canadian Income Trust Fund.

Regarding the Merrill Lynch Internet Strategies Fund, the proposal is to expand the Fund’s mandate beyond the Internet sector to include a broad range of technology stocks that would provide increased flexibility to the Portfolio Managers. This is a response to the narrowing of the internet sector that has taken place over the past year, says Merrill, and the reduced number of pure internet stocks. If the change in investment objectives is approved by Unitholders, the Fund will be renamed Merrill Lynch Global Technology Fund, in order to reflect its broader mandate.

Paul Meeks, will remain manager of the fund. He is a CFA with more than 11 years of investment experience, particularly in technology stocks. He joined Merrill Lynch Investment Managers in 1998, and currently manages various technology related mutual funds for Merrill Lynch globally.

As for the Merrill Lynch Canadian Income Trust Fund, the firm proposes to broaden the mandate of this Fund to allow the Portfolio Managers to invest a portion of the portfolio in non-Trust securities. The reasons for this change, says Merrill, are to provide greater flexibility and liquidity to the Portfolio Managers to allow them to more effectively respond to volatility in income trust valuations. No name change is being considered for the Fund.

Lead portfolio managers on the Fund, Kim Shannon and Gaelen Morphet, will remain the same. Kim Shannon joined Merrill in 1999, and she has an 18-year career. She is a CFA and holds an MBA from the University of Toronto. Gaelen Morphet also joined Merrill in 1999, and has a 17-year career. Morphet is also a CFA.

Unitholders of the Merrill Lynch Internet Strategies Fund and Merrill Lynch Canadian Income Trust Fund will be asked to approve these changes at special meetings to be held October 25, 2001. If approved the changes will take effect after the close of business on or about October 30, 2001.