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Analysis: This fund has struggled recently and as a result its returns over all times frames have slipped. However, some caution is warrented when comparing results. It the recent shake-up of fund categories, this one was reclassified as a Canadian Focused Small/Mid-Cap Equity fund. However, it is actually a balanced fund, which at the moment is weighted towards stocks. When you compare the returns of this fund to the averages of the Canadian Equity Balanced category, where we think it more properly belongs, the returns for five years and more look much better by comparison. The five-year average annual compound rate of return to Aug. 31/07 was 9.7% compared to 9.2% for the Canadian Equity Balanced category. The equity side of the portfolio is very compact so Michael takes relatively large bets (the position in Nexen accounted for over 6% of the assets in the first half of 2007). That might suggest an undue amount of risk, but the fund has recorded very few losing years, the last being in 1998 when it was down 2%. However, it risks ending 2007 in the red, as it was off 2.2% year-to-date to the end of August. We are reducing the rating a notch to $$$ for now as a result.