FA NORTH AMERICAN COVERTIBLES FUND T.NCD.UN

RE: when these warrants expire....

[Zien]

According to the NCE Diversified Web Site, the fully diluted Net Asset Value as of Feb.1/2001 was $4.33. At to-day's unit market price, that indicates that you would still be paying 15% less than if you were to buy the underlying Trusts seperately. I started attempting my own research of Trusts a couple of years ago. Royal Host seemed to have very poor management and was not attractive even when it went to $4.90. Last month's CIBC World Markets Review of REITs recommended every one of them as a buy except that the recommendation for Royal Host was "sell." Analyzing Trusts individually is a full-time job. NCE's recent record of picks and discards seem very good, to be faulted, perhaps, only by being over-conservative. For months, the short positions in the units and the selling of units and purchasing of warrants by a few Investment Houses indicates that they are using the warrants to protect their selling short into any demand instigated by individuals or NCE. This should end after the warrant's expiry date. Enervest Diversified Income Trust (an almost undiscriminating portfolio basket approach is one of its drawbacks) has been selling at as little as a 3% discount to NAV.