While we are pleased with our five ABC Funds' investment performance for 2010 our financial returns were neither straight-line nor a slam dunk. In fact, 2010 was not an easy year; it was a stock picker's market and quite volatile.

Looking back, the first four months of 2010 were quite productive for common stocks followed by two absolutely awful months of May and June. This negativity was primarily due to the spreading alarm of a serious double-dip U.S. economic recession. Fortunately, this scare was very much overblown and the second half of 2010 provided for a remarkable North American stock market recovery. Our 2010 forecast had been one of a volatile sawtooth-like upward movement in both an economic recovery and a stock market trajectory. In all candour, we expect a continuation of this trend through 2011. We believe that 2011 should provide for improving economic prospects with gradually declining unemployment, healthy corporate profits and, similar to 2010, a sawtooth-like stock market advance. We expect 2011 to again be a stock picker's market and, as a result, we will continue to pursue mispriced and undervalued common shares.

In summation, we would like to thank our loyal clients for their continued patience and understanding. We are very proud of our five ABC Funds and, rest assured, we will continue to strive toward our goal of investment excellence for 2011 and beyond.

Irwin A. Michael, CFA