In the coming year, we expect that the performance of global equity markets will continue to be a key factor influencing our financial performance. However, with new sources of revenue now established, we have put some insulation in place against these elements and laid the groundwork to benefit from a market rebound.

We believe industry consolidation will continue apace and that AGF is well-positioned to meet these challenges. We will maintain our commitment to build our brand, to intensify control over costs, and ensure the best in customer service and insight. Our global platforms in Ireland, U.K., Singapore and Japan should also prove to have above-average growth potential.

Consistent with falling equity markets, AGF Class B shares returned weaker performance this year. At the same time, dividend payments in 2002 increased 15.9 per cent to allow shareholders to benefit from the strong free cash flow, bringing the rate of dividend increases to 16.9 per cent per year over the last six years.

AGF Class B shares over the long-term have generated exceptional shareholder value. Over five years, AGF Class B shares have returned a strong 10.3 per cent compounded annual growth rate. Over 20 years the results are even more impressive. According to a recent listing in National Post Business magazine, AGF Class B shares rank an impressive number one for the best performance on the S&P/TSX Composite Index over the last 20 years. In other words, $10,000 invested on December 31, 1982, was worth $560,714 on December 31, 2002 - a total share price growth of 5,500 per cent. This is a testament to AGF's consistency and innovation.

Many people contribute to our on-going growth and success. I want to recognize our employees whose commitment and energy give AGF a special kind of vitality that pushes us to achieve excellence. The directors of the company and the directors of the funds have once again demonstrated their wisdom and professional guidance. Most importantly, I want to thank all the investment advisors who work with us for their trust and commitment. These relationships are truly at the heart of our success.

Thank you,

Blake C. Goldring, CFA
President and Chief Executive Officer