Considering the significant economic and financial turmoil over the past 11 months, we were very pleased to see that all five ABC Funds produced positive investment performance for the month of May. In particular, it should be noted that both the ABC Fully-Managed and ABC Fundamental-Value Funds are now showing positive 2008 year-to-date returns of 5.67% and 2.25% respectively.

It is no secret that the past year has been most difficult not only for our ABC Funds, but also for most value managers. The value underperformance was largely due to the markets infatuation with momentum and growth stocks such as Research In Motion, Potash Corporation, BCE, Google, etc. Clearly, the conviction and stamina of deep-value managers was severely tested. Nonetheless, as difficult as it was, we stuck to our disciplines.

Fortunately, over the past two months, an important shift has occurred back toward value investing. Many fundamentally undervalued stocks have recovered. In fact, two ABC Funds holdings have become the object of takeovers including Saxon Energy Services and Endev Energy. Furthermore, other ABC Favourites such as Jo-Ann Stores and Fortress Paper have more than doubled from their mid-winter price lows. Clearly our patience is being rewarded.

In summation, we remain committed to our deep-value investment disciplines and are particularly optimistic for the balance of 2008.

Irwin A. Michael, CFA