A Proven Track Record

Table of Contents

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100% foreign content RRSP’s



Since December of 1998 I have been advising clients with RRSP’s to roll-them over to Segregated Funds. For another couple of years segregated funds will continue to enjoy significant advantage over Mutual Funds. In response to pressure from the insurance industry, Federal Finance Minister, Paul Martin, has agreed to wait until January 1rst, 2001 before applying the 20 percent maximum foreign consent rule to segregated funds. This has already been postponed twice before. So what are some of the results so far – see advertisement. One of the funds we use for this is 100 percent foreign content RRSP is the Maxxum American Equity Segregated Fund which is managed by the Janus Group out of Denver. This does not show the huge jump in Fund value since the federal interest hike. The TSE redounded about 2.7 percent that week while the Nasdaq was up 7.5 percent – this fund invests heavily in the Nasdaq as pep top 10 portfolio holdings.



The indicated rates of return are the historical annual compounded total returns for the period ending June 30, 1999, including changes in the unit value and reinvestment of all distributions, and do not take into account sales or other charges payable by the unit holder which would have reduced rates.


Performance data are provided for illustrative purposes only and represent past performance, which is not necessarily indicative of future performance.


Make your investment decision wisely. Important information about MAXXUM Group of Funds is contained in the funds simplified prospectus. You can obtain a copy from Dan Tiffin or by calling MAXXUM Fund Management Inc. at 1-888-4-MAXXUM (1-888-462-9986). Please read the simplified prospectus carefully before investing. Unit values and investment returns will fluctuate.


MAXXUM, MAXXUM and design, MAXXUM Group of Funds and Design, Arch designs are trademarks of MAXXUM Fund Management Inc.


MAXXUM AMERICAN EQUITY FUND


MAXXUM American Equity Fund is designed to achieve long-term growth of capital by investing primarily in common stocks of large, well-established U.S companies as well as select international companies. The fund sub-advisor is Warren Lammert of Janus Capital Corporation.


1 year%

3-year%

5-year%

10 year%

56.3

40.8

n/a

n/a



FUND PROFILE


Date of inception

January 5, 1999

Fund Type

American Equity

Primary Objective

Growth

Assets in fund

$95,094,469

Management fee

2.25%

Distribution frequency

Annually

RRSP eligible

Yes**

Minimum initial investment

$500

Minimum subsequent investment

$100

Minimum subsequent systematic investment

$50

**Subject to 20% foreign content limit


PORTFOLIO DETAILS

Top 10 portfolio holdings


Amazon.com Inc

6.5%

Nokia Corp. ADRA

6.0%

AT&T Corp


Liberty Media Group Classes

4.6%

Time Warner Inc.

4.0%

Level 3 Communications Inc.

3.8%

Cisco Systems Inc.

3.7%

Enron Corp

3.5%

Tyco International Ltd.

3.5%

Medtronic Inc

3.4%

eBay Inc

3.2%


PERFORMANCE


$10,000 invested at fund inception (January 1995) would now be worth $45,261. This includes changes in unit value and reinvestment of all distributions, and doesn’t take into account sales or other charges payable by the unit holder, which would have reduced returns.

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