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ABC FUNDAMENTAL-VALUE FUND OVERVIEW
OBJECTIVE
ABC Fundamental-Value Fund seeks out fundamentally undervalued Canadian equities. Our extensive “value research” style attempts to ferret out overlooked and out of favour Canadian equities. With these discerning selections we cobble a diversified portfolio of small, medium and large capitalization Canadian value stocks. When fully invested and having discovered new, fundamentally attractive securities, our sell discipline forces us to cull our portfolios to liquidate the most expensive holdings.

ABC Fundamental Value Fund's
Top Ten Stock List

Pioneer Natural Resources Co.
Addax Petroleum Corp., sub receipts
Nexen Inc., common
Seaspan Corporation , common
Unum Provident Corp., common
Saxon Energy Services Inc.
Talisman Energy Inc.
Precision Drilling Trust, units
Polaris Minerals Corp.
Hudbay Minerals Inc., common
as at March 31, 2008

updated quarterly
SECTOR ALLOCATION
Sector allocation
PERFORMANCE
ABC Fundamental-Value Fund Annual Returns
Year ABC FVF (%) TSXTR (%)
1990 -1.98 -14.80
1991 22.92 12.02
1992 4.26 -1.43
1993 121.75 32.80
1994 3.03 -0.63
1995 11.08 14.83
1996 31.75 28.35
1997 20.35 14.98
1998 -13.81 -1.58
1999 16.25 31.71
2000 7.51 7.41
2001 26.06 -12.57
2002 7.62 -12.44
2003 23.55 26.72
2004 21.42 14.48
2005 16.62 24.13
2006 19.13 17.26
2007 -7.86 9.83
TSXTR = S&P/TSX Composite Total Return Index
as at December 31, 2007 updated annually
Compounded Annual Rates of Return
  ABC FVF (%) TSXTR (%)
1 year -15.11 4.00
2 year -1.90 7.65
3 year 4.65 14.17
5 year 14.45 18.49
10 year 9.30 7.81
15 year 15.72 11.27
Compounded Since Inception:
(March 20th, 1989) 		 15.67 9.66
TSXTR = S&P/TSX Composite Total Return Index
as at March 31, 2008 updated quarterly
VALUE OF $1000 INVESTED AT INCEPTION
Chart of $1000 invested at inception
PORTFOLIO
All dollar amounts in thousands (CDN$), Exchange rate used is 0.9869524
No. of Shares Description Total Cost ($) Market Value ($)
CASH -- 8.83%      
1,661,360 C$ Cash 1,661 1,661
149,449 U$ Cash 147 147
669,083 RT CAP Cash In Action Fund 66,908 66,908
21,002 RT CAP U$ Cash Mgmt Fund 2,073 2,073
  TOTAL CASH 70,790 70,790
COMMON STOCKS -- 91.17%      
REAL ESTATE -- 3.77%
2,950,000 Huntingdon Real Estate Inv. Trust 7,858 6,785
600,000 Morguard Corp., common 12,351 23,460
  TOTAL 20,208 30,245
INDUSTRIAL PRODUCTS -- 0.55%
3,253,300 Magellan Aerospace Corp. 9,703 4,392
  TOTAL 9,703 4,392
FINANCIAL SERVICES -- 2.50%
35,550 E-L Financial Corp. 9,591 20,086
  TOTAL 9,591 20,086
OIL & GAS -- 28.23%
775,000 Addax Petroleum Corp. 20,385 33,286
3,000,000 Anderson Energy Ltd., common 19,268 8,640
1,750,000 Avenir Diversified Income Trust 11,855 13,545
2,500,000 Bow Valley Energy 3,725 15,750
1,750,000 Essential Energy Services Trust 14,452 5,390
4,705,000 Gentry Resources Ltd., common 18,703 10,774
5,050,000 Geocan Energy Inc. 9,343 1,515
2,929,200 Ithaca Energy Inc. 6,940 9,290
4,500,000 Midnight Oil Exploration  16,398 4,860
1,000,000 Nexen Inc. 8,028 32,100
3,280,000 Pearl Exploration  15,835 8,528
1,000,000 Precision Drilling Trust units 27,211 15,090
4,500,000 Saxon Energy Services Inc. 17,317 22,950
22,500,000 Stratic Energy Corp. 27,989 19,800
1,350,000 Talisman Energy 8,136 24,827
  TOTAL 225,583 226,345
MERCHANDISING -- 0.63%
500,000 Danier Leather Inc. 5,018 5,045
  TOTAL 5,018 5,045
COMMUNICATION -- 2.24%
2,500,000 CanWest Global Communications  24,337 18,000
  TOTAL 24,337 18,000
MINING/PRECIOUS METALS -- 14.05%
400,000 Franco Nevada Corporation 6,080 6,060
1,250,000 Hudbay Minerals Inc. 3,463 24,375
9,630,100 Ivernia Inc. 15,202 16,660
2,000,000 Polaris Minerals Corp. 9,600 22,820
1,925,000 Richmont Mines 9,433 6,045
6,250,000 Western Goldfield Inc., common 13,668 23,813
1,200,000 Whitemud Resources 9,608 12,900
  TOTAL 67,055 112,673
PAPER & FOREST PRODUCTS -- 3.47%
3,500,000 Norbord Inc. 31,432 27,860
  TOTAL 31,432 27,860
CONSUMER PRODUCTS -- 2.85%
1,095,000 Andrew Peller Ltd., common 4,497 10,282
400,000 Arbor Memorial Services "B" 5,339 12,600
  TOTAL 9,836 22,882
U.S. STOCKS -- 28.68%
125,000 Amer. Nat. Ins. Co. 14,057 14,957
1,075,000 Babcock & Brown Air Ltd. ADS 24,646 19,320
725,000 Blackstone Group 17,538 15,835
1,470,111 Flagstar Bancorp Inc., common 20,113 10,113
250,000 General Motors Corp. 14,238 6,141
900,000 Jo-Ann Stores Inc. 17,438 11,618
385,000 Kansas City Life Insurance Co. 21,852 16,563
1,858,990 Meridian Resources Corp. 6,907 3,321
750,000 Pioneer Natural Resources Co. 34,379 36,152
900,000 Presidential Life Corp. 21,231 15,553
1,000,000 Seaspan Corporation 25,212 24,170
750,000 Superior Industries International 17,700 13,450
1,000,000 The Phoenix Companies 17,648 13,440
1,250,000 Unum Provident Corp., common 25,148 29,349
  TOTAL 278,107 229,982
FOREIGN STOCKS -- 4.19%
4,500,000 McGuigan Simeon Wines Ltd. 8,942 8,774
5,000,000 Standard Life PLC, common 28,582 24,833
  TOTAL 37,525 33,607
TOTAL COMMON STOCK   718,395 731,117
TOTAL PORTFOLIO   789,185 801,907
as at December 31, 2007 updated quarterly    
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Managed by I.A. Michael Investment Counsel Ltd.