The fund, based on the 30th April valuation, rose by 3.1% to USD 994.18 in April. This figure includes all initial investment costs (some of them high in our smaller stocks), as well as set up and other costs. The Merrill Lynch International Gold and General Fund (USD) was down by 0.8% and the FTSE Gold Mines Index (USD) down by 1.05% over the same period. We are ahead of this, a leading fund in the sector, and the FTSE Gold Index, by over 10% since inception. Gold and Silver were up by 1% and 5% respectively. Since the month end, gold mining stocks have been running. We are starting to make good money for our investors. This, after all, is the long term objective of the fund; as we said before, one cannot spend "relative dollars."

As at 30/4/03, the fund was 90% invested. Since then we have become fully invested. We will continue to hold a diversified portfolio of major, medium sized and junior gold and mining company shares in North America (47%), Australasia (12%) Africa (19%) and other countries (3%). In mid April, we put 10% of the fund into physical silver at USD 4.48. We are already showing a nice profit. It has paid to wait. We sold the Cameco position and added to Golden Star and Cambior. There were no other changes.

Baker Steel, the advisers to the fund, believes that we are now well placed to take advantage of the opportunities in the sector. We remain convinced that this sector offers a generational opportunity to produce excellent returns.