The David Miner Communiqué—Spring 2007

Spring – At last!

The snow is gone. I thought it would last forever! As always, Dorinda and I took a ski holiday in early March, a post-RSP season ritual which this year took us back to Whistler, B.C. Later in March, I completed the 30 kilometer Around the Bay Race in Hamilton with friends. This event was a pleasant non-competitive run for us, with lots of stops to take pictures (see page 3). In May, I ran in the Sporting Life 10K and Mississauga Half-Marathon. No full marathons are planned for this spring, but will be on the agenda for this fall.

Wrap:
an important four letter word that means
much more than the latest fad in sandwiches.

The first investment wrap program arrived in Canada through Toronto- Dominion Bank in the late 1980's and was modeled off the young and growing wrap business in the United States. Very simply, wrap programs used technology to allow portfolio managers to manage model portfolios at the highest level. Security trades were done in bulk and security positions allocated across many individual accounts automatically. At the individual level, the client had at least the perception of a personal and privately managed portfolio; although, it was computer software that executed most of the detail work. In many ways, wrap programs emulated mutual funds, with the exception that investors held individual securities instead of mutual fund units.

Many wrap programs were subsequently introduced through the brokerage industry, but were expensive and not nearly as cost effective as mutual funds. Even to this day, some wrap programs just do not make good sense (despite successful marketing).

Over the last twenty years, wrap has evolved in many positive ways, including the introduction and refinement of mutual fund wraps. Some excellent and very cost effective mutual fund wrap solutions are now available. Many good firms are in the business and account minimums have dropped substantially. While some wrap programs still require minimums of $500,000 to $1 million, some mutual fund wraps allow entry for as little as $5,000. Technical efficiencies allow the mutual fund wrap programs to be offered at essentially the same management expense ratios as the underlying funds (i.e.; at virtually no additional cost in many cases).

The mutual fund wrap (or “fund of funds”) approach, oddly offers investors a number of advantages over direct investment in mutual funds, including:

1. With wrap programs, advisors access the portfolio managers’ expertise and sophisticated first-hand knowledge of financial markets to build a strategy that best fits investor objectives. Fund allocation in wrap programs is done by educated, trained, experienced, and focused portfolio managers skilled in risk management.
2. Most brokers and financial advisors are hesitant to put too many funds in portfolios. Exposure to important areas such as emerging markets or global small cap is often missed as even healthy allocations may be too small to bother. Even the most conservative portfolios deserve small allocation to these markets to both increase return and mitigate risk.
3. Fine tuning is done automatically by portfolio managers in wrap programs. In a portfolio of individual securities or funds, retail advisors can only get involved in client transactions (and portfolio tuning) if the amounts are large enough.
4. Mutual fund wraps offer exposure across many areas efficiently – domestic equity, global equity, small cap, income trusts, bonds, and more. Individual retail portfolios are often tilted and over-weighted in one area or another. Wrap is often the better way.

Mutual Fund Wrap programs can make sense for most investors for either 100% of their holdings or at least a significant core position of their investments. There are a number of selections of wrap programs available today from such well-known firms as Franklin Templeton (“Quotential”), AGF (“Elements”), TD (“MAP”), Fidelity, CI, and more. Each firm offers different wraps to fit different investment profiles. Many investors hold more than one wrap and may hold individual fund positions as well.

AGF Elements -- Wrap with a Difference

In this communiqué, we are pleased to give focus to AGF. AGF introduced Elements
about a year and a half ago and has experienced solid success with this wrap program
since. AGF has a good team of Canadian equity and fixed income managers. Through
AGF International Advisors, AGF capably also offers solid global equity management.
While many of the AGF funds have themselves performed well, at a higher level, the
asset allocation provided through Elements has been a critical factor in the success of
the Elements program.

There are three critical features that make the 5 AGF Elements Plans (i.e., the 5 AGF
funds of AGF funds) attractive.

1. At the highest level, fund and asset allocation is managed by an independent investment
   consulting firm called Wilshire and Associates, one of the largest such consulting
   firms in the world. Wilshire has a mandate to both optimize return and mitigate
   risk.
2. Each of the 5 AGF Elements Portfolios, from AGF Elements Balanced Portfolio
   to AGF Elements Global Portfolio, has a benchmark against which it is measured. At
   the end of three years, if the benchmark is not reached during that period, AGF will
   return up to 0.9% additional to investors, a unique benefit in the industry.
3. Notwithstanding the potential bonus of up to 0.9% every three years, the management expense ratios for Elements are attractive.

Of course, like all investment funds, we are pleased to offer all AGF Elements programs at 0% commission through David Miner and Associates. Here are the AGF Elements line up, with inception and one year returns to April 30, 2007:

For a full breakdown of funds within the Elements Portfolios, go to www.AGF.com. In the “AGF Product Finder”, click “Elements”, then go to “Financials and MRFPs”. To discuss Elements in greater detail, contact us at 905-949-3639 or 1-866-93- MINER or dminer@queensbury.com.

Here are a few things to keep in mind before you invest:

1. Let us guide you through the maze of choices that are available to you.
2. Do not pay commissions – front end or back end. Keep your transactions no load
   - maximize your returns, maintain your flexibility and minimize your costs.
3. Ensure that you have adequate exposure to global markets. Our Canadian stock
   market is relatively small --- too small to keep all of your savings.

Mutual Fund performance includes changes in share value and reinvestment of all dividends but do not take into account sales, redemption, distribution of optional charges or income takes which may have reduced returns. Fees and expenses are associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual funds are not insured by the Canada Deposit Insurance Corporation or any other deposit insurer and are not guaranteed.