April 3, 2002

Dear Unitholders:

The net asset value of the Fund as of March 31, 2002 was $4,239.96 per unit. In Canadian dollars, this represents a 1.2% decrease for the quarter. In U.S. dollars, the Fund declined 1.3%.

The Fund's performance in the first quarter was lackluster, as it was for most of the broader market indexes listed above. Our peer group delivered simila r results with the average U.S. mid-cap fund declining 2.5%, according to the Lipper measuring organization. Our results do not come as too much of a surprise as significant strength in the fourth quarter (+28.5% U.S.) likely borrowed from the first quarter's performance.

During the quarter, telecom and technology stocks continued to hurt our performance. Additionally, on the negative side, a handful of stocks in the portfolio had significant declines as companies failed to deliver on earnings expectations. On the positive side, we had many successful stocks which mostly offset the losers.

March 2000 marked the beginning of the collapse of the internet bubble. Since that time, it has been a very difficult environment for growth stocks. Perhaps the NASDAQ best illustrates this with its 60% decline since then. We are excited about the potential for growth stocks because we know opportunity abounds when uncertainty and fear prevail.

We continue to maintain that companies which produce superior earnings growth purchased at reasonable prices will perform well over time. Moreover, small to mid cap companies have a comparatively easier time growing off their smaller base than larger cap companies. Additionally, in a slow growth or no growth economic environment (particularly with low inflation and interest rates) companies that grow rapidly should sell at higher multiples. As a result, we feel that the current environment is ideal for an active money manager picking individual stocks rather than indexing or top down investment approaches.

As of March 31st there are no realized capital gains. This year's unitholders' meeting (see attached) will be held on Monday the 13th of May. We hope to see you there!

Yours truly,