Global Portfolio July 15, 2007:

No changes to the portfolio at this time the portfolio utilizes Exchange Traded Funds (ETF’s) as an efficient low cost method of diversifying in to global markets. The Canadian equity section remains focused on energy, metals and gold. The concentration in commodity related stocks has helped the portfolio out perform the TSX composite.

When the next market correction takes place which will likely be sometime this summer or early fall I will be adding a new ETF which is focused on the Canadian oil sands sector. The increase in crude oil to over $72.00 a barrel has reignited interest in the energy sector. The world is watching the development of the Canadian energy sector and the US economy is becoming more dependent on Canadian crude. The US now imports more oil from Canada than any other nation; although most Americans would point to Saudi Arabia and get the answer wrong. The numbers are quite interesting and you will be able to win a number of bets at summer BBQ’s with this information.

According to the Energy Information Administration (EIA) which issues the official US Government energy statistics America imports average 13.2 million barrels per day, OPEC nations account for 5.67 million (43%) which includes the 1.414 million from Saudi Arabia (10.7%) and 1.299 million from Venezuela (9.8%), the total from the Persian Gulf States is 2.112 million or 15% of global imports. The US imports 2.452 million barrels of oil daily from Canada or 18.56% of total global imports, more than all the Gulf States combined and nearly double the amount from Saudi Arabia or Venezuela. (Bet big, no one will know the numbers)

The increased global interest in Canadian crude will continue as the political uncertainty escalates in the Middle East and as other leaders follow the likes of Hugo Chavez in Venezuela and move to nationalize the energy sector. The political stability in Canada will attract investment diverted from these other more volatile regions.

Oil sands development will become a key component of the Canadian energy sector as reserves in stable countries increase in value. The ability of the Canadian energy sector to attract the capital required for this development will become much easier as the depletion of reserves from traditional low cost, light crude regions such as the Persian Gulf and Mexico becomes more severe. The vast reserves in the tar sands put Canada in the position of being a strategic supplier of energy products. The companies involved in the development of the oil sands have a strategic long term asset that will see demand continue to grow over the long term.

Investors looking for a low cost diversified holding in this sector will be well served by the Claymore Oil Sands Sector ETF (CLO-T). The ETF was launched October 26, 2006 at $20.00 per unit. The fund currently holds 17 companies that are focused on oil sands development and increasing production over the next ten years. The units trade on the TSX and have a relatively low Management Expense Ratio (MER) of only 0.60%. These units could form part of the long term core holdings in a well diversified growth oriented portfolio.

Global Portfolio July 15, 2007:

Original invested capital April 15, 2004: $100,252.00 CAN

ETF Profiles:

XIU:  S&P/TSX 60 Index Fund holds the 60 largest companies by market capitalization in Canada, all of the main sectors of the economy are represented. The unit pays an annual Dividend of $0.87 per unit, current yield is 1.65%. The units are very liquid there are currently 105 million outstanding.

XMA: Materials Sector Index Fund holds 60 companies in four main sectors Gold (45%), Basic Materials (39%), Metals & Minerals (10%) and Forestry (4.5%). The unit has a current dividend of 1% and the MER is only 0.55% of the net asset value.

XEG: Energy Index Fund holds 28 Canadian energy companies involved in the production, service and integrated sectors of the OIL& Gas sector. The unit pays a small annual dividend of $0.50 per unit, current yield is 0.89%.

XGD: Gold Index Fund holds 19 Canadian companies involved in Gold production. The unit is dominated by two companies Barrick Gold and Placer Dome which combined account for 48% of the units’ value.

ILF: S&P Latin America 40 Index Fund holds a diversified portfolio of 40 large companies for the four largest economies in the region, Mexico, Brazil, Argentina and Chile.

EWJ: MSCI Japan Index Fund holds a corresponding position to the Index. Top ten holdings, Toyota, Canon, Takeda Pharmaceutical, Mitsubishi Financial, Honda Motor, Mizuho Financial, Sony, NTT DoCoMo, Matsushita Electric and Sumitomo Mitsui Financial.

EPP: MSCI Pacific Index Fund ex: Japan. Holds companies from Australia, Hong Kong, New Zealand and Singapore. Top ten holdings, BHP Billiton, National Bank of Australia, Commonwealth Bank of Australia, Australia & New Zealand Banking Corp, Westpac Banking Corp, Hutchison Whampoa, Westfield Group, Cheung Kong, Sun Hung Kai Properties and Woolworths.