The Fund's objective is to provide long-term growth of capital and may invest up to 70% of its portfolio in units of the S&P/TSX 60 Index Fund ("I60s"). The remaining portion of the portfolio will be actively managed to enhance diversification.

The active component of the Fund may be comprised of common shares and convertible debentures of large capitalization Canadian and international companies as well as index units of U.S. and other foreign stock exchanges and will focus on those areas of the market which the Manager deems to have significant capital appreciation potential. The Manager is currently positive on the gold and energy sectors. Strong long-term demand is expected to support gold prices as investors seek a safe haven from volatile markets, weakening world currencies and the risk of inflation. In addition, key supply challenges such as the difficulty of finding new material deposits, environmental opposition and the threat of nationalization in some of the most promising regions for resource development should support gold prices in the future. Assisted by the research of Groppe, Long and Littell, an advisor to Middlefield that specializes in oil and gas supply, demand and price forecasting, we remain positive on the long-term outlook for the oil and gas sector and continue to be of the view that global oil and North American natural gas production have peaked.

The Fund generated a return of 17.1% in 2009, 3.1% in 2010 and a compound annual return of 1.2% during the past ten years.