Spectrum Canadian Investment focused on value: the fund invests in TSX large cap stocks that are undervalued relative to their peers

Money Digest, June, 2002

The Spectrum Canadian Investment fund aims to achieve long-term capital growth by investing primarily in shares of major Canadian corporations. To accomplish its objectives, the fund invests primarily in the securities of the largest (by market capitalization) 150 companies listed on the Toronto Stock Exchange.

Spectrum Canadian Investment Fund applies a disciplined value style for stock selection. The portfolio managers concentrate on companies that are estimated to be undervalued in relation to their future prospects and offer good absolute as well as relative value. The criteria used to arrive at value include characteristics such as lower-than-average price/book, lower price/earnings ratio, and higher-than-average dividend yield.

Although the fund suffered heavily during the technology sector downturn, it registered an impressive 18% return in 2000. This performance was followed by an 8.9% return in 2001, during the year when the TSE 300 index lost 12.6%.

The fund is suitable for conservative investors for several reasons:

* The fund is diversified in 10 sectors and so is less vulnerable to a downturn many one sector.

* The fund uses a disciplined, value-oriented approach to stock selection. (The fund has been co-managed by Kim Shannon and Gaelen Morphet since 1999.)

* The fund has a good performance record.

* The fund invests in solid, large capitalization companies, many of which are household names.

If you are a conservative investor looking for a value-oriented conservative fund, you may want to consider Spectrum Canadian Investment. For more information on the fund, visit the Spectrum Web site at www.spectrum.com.

Spectrum Canadian Invest.

MER                             2.53%
Load Fees                         F/B
1-year return                   14.5%
3-year return                   13.3%
5-year return                   12.2%
10-year return                  12.4%
RRSP Eligible                     Yes
Minimum Investment               $500
(returns as at April 30, 2002)
Top 10 Holdings

Magna International Inc-CI A  5.67%
Royal Bank of Canada          5.46%
Bank of Montreal              3.26%
EnCana Corp                   3.14%
Bank of Nova Scotia           2.77%
Imperial Oil Ltd              2.55%
Toronto-Dominion Bank         2.48%
Alcan Inc                     2.36%
Dofasco Inc.                  2.17%
National Bank of Canada       2.04%