Asset Allocation June 15, 2005

The Growth Portfolio has benefited from a focused but diversified strategy. The focus has been on the Canadian commodity sector including energy, base metals and gold. The addition of financial services, transportation and industrial stocks has given the portfolio added stability being less volatile than a highly concentrated portfolio.

CN Rail recently announced a 2:1 stock split by way of a stock dividend the portfolio reflects that change now showing 300 shares with an average cost of $36.13.

Last month Cameco announced a 2:1 stock split as well and that has been reflected in the portfolio showing 400 shares with an average cost of $28.00 per share.

Those are the only changes to the growth portfolio for this month.

Growth portfolio as at March 15, 2006:

Global Portfolio:

The Global Portfolio attempts to follow the asset allocation model and has made the changes as suggested by selling the SPDR Trust (S&P 500) unit and replaced that with the S&P Latin America 40 index Fund which is an exchange traded fund trading under the exchange symbol ILF.

The Latin America 40 Index is made up of 40 large companies from the four largest economies in the region, Mexico , Brazil , Argentina and Chile . The top ten holdings in the fund are, America Movila SA de CV, Petroleo Brasileiro SA ADR, Cemex SA de CV, Companhia Vale do Rio Doce, Banco Bradesco SA, Telefonos de Mexico, Comapnhia Vale do Rio Doce ADR, Banco Ltau Holding Financiera, Wal-Mart de Mexico SA, Companhia De Bedidas das Americas.

This well diversified unit is a low cost way to invest in the region with a very low management expense ratio of only 0.5%.

Canadian dollar exchange rate: 1.1558

Investment profiles:

Inco (N):

Inco is a well known name in Canada is the second largest nickel producer in the world and also produces copper, gold and nickel products as well. The company has mining operations in Sudbury , Thompson Manitoba and Indonesia . Inco is currently developing two properties the Voisey's Bay property in Labrador which is scheduled to be in production in early 2006 and the Goro property in New Caledonia which is expected to start producing in the fall of 2007

Inco is expected to produce approximately 500 million pounds of nickel and 260 million pounds of copper and 400,000 ounces of platinum group metals in 2004. The company is on track to produce more nickel this year than at any time since 1974. Inco is in an excellent position to increase production over the next 2-3 years and take advantage of the increase in demand from Asia . Inco has submitted a take over offer for Falconbridge if this offer is successful Inco will be the world's largest nickel producer and a major copper producer as well.

Target price: $65.00

Aur Resources (AUR):

A Canadian copper producer and small enough to be a potential take over candidate. The company operates a number of mines in Quebec and Chile . The company is developing a number of properties in North and South America as well.

Target price: has been increased to $15.00 due to the ongoing strength in copper and the stop loss is set at $10.00.

Cameco (CCO):

Cameco is the worlds lowest cost producer of uranium and supplies approximately 20% of the world's production. The company has total proven and probable reserves of 550 million pounds of uranium. The company operates three mines in Northern Saskatchewan , McArthur River , Key Lake , and Rabbit Lake along with two properties in the US , Smith Ranch-Highland in Wyoming and Crow Butte in Nebraska . Cameco also owns 31.6% of Bruce Power which is a joint venture with TransCanada Corp and BPC Generation Infrastructure Trust. Bruce Power has leased eight Candu reactors located in Ontario , six of which are operational, the six reactors can produce 4,700megawatts of electricity enough to supply approximately 20% of the provinces power requirements. Cameco produced 20.56 million pounds of uranium in 2004, 2 million pounds more than in 2003, generating revenue of $1.04 bill ion and earnings of $278.8 million or $1.56 per diluted share. The company recently split the shares 3:1 and increased the annual dividend by 20% to a post split $0.24 per share.

Target price: $100.00

TD Bank (TD):

TD is one of the five largest banks in Canada offering a wide array of financial services. The retail market is serviced by over 1300 TD Canada Trust locations, TD Securities offers investment banking. The fundamentals in the financial services industry have improved over the last year with loan loss provisions declining, the equity market activity improving and a very active housing market creating an attractive mortgage market. As the economy continues to improve so should the profitability at the TD. The chart shows a strong uptrend in place going back to the fall of 2003.

Target Price: $65.00

Sunlife Financial (SLF):

SLF is an international financial services company offering life, health, pension and retirement services. SLF also owns MFS one of the top ten mutual fund companies in the US , along with a 34% ownership in CI Fund Management Inc. gives SLF a diversified position in the wealth management business in North America . The fundamentals in both of these businesses has been improving the stock trades with a P/E of 17.5 and the chart shows an uptrend in place which started in the summer of 2003 and the shares going to new highs into uncharted territory.

Target Price: $50.00

Shell Canada Ltd (SHC):

Shell is a well positioned integrated oil and gas producer that also has refining capacity. The current lack of refining capacity in North America will mean that any refineries currently operating will be in a very good position to expand profitability. Shell is also a major natural gas producer and with natural gas near all time highs and production reduced due to hurricanes Katrina and Rita this winter will see gas prices remain high.

Initial target price is $45.00 and the stop loss set at $32.00 the 200 day moving average.

Suncor (SU):

Suncor Energy Inc. is an integrated oil & gas company with operations focused in the Alberta oil sands, one of the world's largest petroleum reserves, which represents 85% of current production.

The company has operations concentrated in the oil sands areas near Fort McMurray , Alberta , mining bitumen and upgrading it into refinery feedstock and diesel fuel. Natural gas is produced in Western Canada and managed from Calgary , Alberta most of the natural gas is produced for internal use in the recovery process in the oil sands operations. The company operates a refinery in Sarnia , Ontario and products are marketed in Ontario , Quebec and northeastern United States . Suncor operates 500 service stations in Ontario and recently acquired 43 Phillips 66 service stations along with a refinery in Denver Colorado .

The company has huge potential reserves the oil sands estimated at 10 bill ion barrels of oil. This positions Suncor as a long term supplier of petroleum products. Target price: $80.00

CN Rail (CNR):

Canadian National Railway Company is a leading North American railway, after acquiring Illinois Central in 1999 and Great Lakes Transportation in 2004 along with the partnership agreement with BC Rail in 2004. The company has 19,560 miles of track in Canada and the US operating from coast to coast and down to the Gulf of Mexico serving the ports of Vancouver , Prince Rupert , Montreal , Halifax , New Orleans and Mobile Alabama .

CN transports a variety of products including petroleum, chemicals, grain, fertilizers, coal, metals, forest products and autos. The company generates revenue from the US (56%), Canada (25%) and international traffic (19%). CN has seen a substantial increase in fourth quarter revenue from the commodity sector metal (37%), forest products (22%), coal (20%) and chemicals (9%). CN recently announced a 28% increase in the dividend per share from $0.78 to $1.00 annually the shares now yield 1.37%.

Target Price: $100.00

Finning (FTT):

Based in Vancouver is a distributor for Caterpillar equipment in Western Canada , the UK and South America . Finning supplies equipment to the resource and construction industry both of which have been much stronger over the past year.

The UK operation recently granted the distribution rights for Perkins Engines which should add $50 million annually in revenue. Target Price: $40.00

Kinross Gold (K):

A Canadian gold producer with 11 mines operating in The US, Canada , South America , Africa and Russia which produce 1.6 million ounces of gold annually. The company is a now one of the ten largest gold producers in the world. Kinross is a low cost producer of gold with a cash cost of production of only $265.00 an ounce. The company is well managed and well positioned to take advantage of the current high price of gold. One year target price: $15.00 initial stop loss $10.00.

Canadian Natural Resources (CNQ):

One of the larger natural gas producers in Canada CNQ also has conventional oil production and is in the process of establishing a production facility in the tars sands in the Fort McMurry area. This is a well managed well diversified Canadian oil and gas company. Target price $65.00. Stop loss $55.00.

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.

XFN: Financials Index Fund holds 26 Canadian financial companies encompassing Banking, Life Insurance, and Investment Management. The unit pays an annual Dividend of $0.80 per unit, current yield is 2.03%.

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.