The Company's owns, directly or indirectly, long-term investments in the common shares of some publicly traded Canadian companies and a managed diversified portfolio of common shares of publicly traded global companies. As of December 31, 2010 the long-term investments comprised approximately 57.3% (2009 - 52.5%) of the Company's investment portfolio.

The long-term investments consist primarily of common shares of E-L Financial Corporation Limited ("E-L Financial") (42.3% (2009 - 38.8%) of total investments), Algoma Central Corporation ("Algoma") (5.3% (2009 - 4.7%) of total investments) and The Bank of Nova Scotia (8.3% (2009 - 7.8%) of total investments). E-L Financial, Algoma and the Company can be significantly influenced by the same party. Further related party information is provided in Note 8 to the financial statements and in the statement of investments.

The global investment portfolio is managed by Sanford C. Bernstein & Co. LLC ("Bernstein"), a global investment manager based in New York that commenced operations in 1967. As of December 31, 2010 approximately 96.8% (2009 - 98.8%) of the global portfolio was made up of non-Canadian companies. As part of its mandate, Bernstein may hedge the foreign currency exposure of any non-Canadian investment that it manages.

The Company faces a broad range of risks and uncertainties in managing a global equity portfolio. Risks of investing in Economic include concentration risk, market risk, liquidity risk, discount risk and securities lending risk. These risks are described in the Risk Factors section of the Company's 2010 Annual Information Form which may be found on SEDAR at www.sedar.com.