April 3, 2003

Dear Unitholders:

The net asset value of the Fund as of March 31, 2003 was $2,424.20 per unit. In Canadian dollars, this represents an 11.8% decrease for the quarter, driven in large part by significant weakness in the U.S. dollar. The Fund declined 5.1% in U.S. dollars.

The Fund's performance in U.S. dollars was essentially in line with the stock market indexes listed above. Although we may be seeing the very early signs of a recovery (the Fund is up 12% since the start of the Iraq war), we remain disappointed with our results. Frankly, given the length and depth of the declines since the market top, we would have expected to see a stronger recovery by now. Unfortunately, the post bubble, bear market remains mired in negative geopolitical events that weigh heavily on an already fragile world economy.

For quite some time now, we have been in an environment in which everyone seems to be waiting on the sidelines. Investors are waiting for clarity on the situation in Iraq while CEO's and companies are waiting to hire, spend new capital or make acquisitions. Overall, confidence is low which leads to an unrewarding landscape for near term results. For us as portfolio managers, it is frustrating to watch good companies mostly meet expectations and not see this performance reflected in stock prices due to macro concerns.

The uncertain times that we are living through today can try any investor's patience and conviction, including long-term investors like ourselves. Investors are desperately seeking certainty in their investment strategies and are currently preoccupied with how to either eliminate or at least mitigate risk. These obsessions always return to the same foregone conclusion----risk free returns are negligible. Our own feeling on the subject is that worrying about risk at this late stage is tantamount to closing the barn door after the horses have fled.

Nevertheless, in the short term, there are those who feel that money market or bond market returns are better than continued stock declines. The problem with this logic is that upward moves in stock prices come in fast, sharp bursts and to fully participate on the upside you need to be on the field for the turn. It is very difficult to rapidly reverse a conservative investment posture in order to capture a market reversal.

While we clearly don't have all the answers, we do have a set of beliefs that have withstood the test of time for over 42 years and that continue to guide us today. We believe in America. We believe in the way U.S. growth is reflected in the stock market. We believe that the past is a guide to the future and that wars, recessions and bear markets of the past have ultimately been followed by recovery and growth. And finally, we believe in the fundamentals of the companies we hold in the portfolio and in our abilities to continue to identify emerging growth stocks. At some point in the not too distant future, investors will have to look through the haze of wars and bubbles to focus once again on companies and their fundamentals. At this time, the raw emotion of traders dominating today's market will be replaced by objective calculations of rational investors. This type of investment climate is our sweet spot.

As of March 31st there are no realized capital gains. This year's unitholders' meeting (see attached) will be held on Thursday the 22nd of May. We hope to see you there!

Yours truly,

*NOTICE OF ANNUAL UNITHOLDERS' MEETING*

Date: Thursday May 22nd, 2003

Place: THE ATWATER CLUB
(Formerly The Montreal Badminton and Squash Club)
3505 Atwater Street
Montreal, Quebec

Time: 5:00-7:00pm