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Analysis: This fund was a long-time underachiever but it has looked much better in recent years. Although the 10-year numbers are only average for the Natural Resources category, returns from one to five years are well above the peer group norms. The average annual compound rate of return for the three years to June 30/07 was 35.4%, more than five percentage points better than the average for the category. The fund invests in growth stocks of all capitalizations – small, mid, and large. As of June 2007, the portfolio was weighted towards energy, with almost a third of the assets in oil and gas, although that was down slightly from the previous autumn. The metals sector was next with a 23.3% weighting. Interestingly, gold exposure has been significantly decreased in recent months dropping from 21.6% last fall to 16.5% at the time of writing. Top holdings include Cameco, FNX Mining, Canadian Natural Resources, and Nexen. The risk element in this fund is on the high side for its type, and very high when compared to an ordinary Canadian equity fund. Therefore, we advise against holding it in a registered plan.