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February 2002

Standard & Poor's and the Toronto Stock Exchange announced on Wednesday January 30, 2002 significant changes in the rules of the TSE 300. The revisions to the index, which will be renamed the S&P/TSE Composite Index, represent the first major change to the TSE 300 since 1977. The changes, which will be implemented on May 1, 2002, come after extensive consultation by Standard & Poor's and TSE with the marketplace of index users in Canada.

Among the key changes announced is a set of new criteria for inclusion and maintenance of public companies in the index. There will no longer be a requirement for the index to have exactly 300 constituents. Company size and liquidity will be the chief attributes determining index membership.

Under the new rules the number of stocks making up the index will vary over time. All stocks that qualify for inclusion during quarterly reviews will be automatically included in the index. There will be two basic standards by which companies will be evaluated - size and liquidity. Size measurements will be based on minimum price and market capitalization. Liquidity measurements will be based on trading activity on the Toronto Stock Exchange.

As of the cut off of December 31, 2001, member stocks will have to have an index weighting of at least 0.025 percent.

By imposing this restriction to the current TSE 300 Index we find 35 companies that are highly probable for deletion. None of those names are currently in the Hillsdale Canadian Aggressive Hedged Fund. Only one name is currently in the Canadian Market Neutral Equity - Short Portfolio (Mosaid Technologies).

Hillsdale's Canadian hedge funds continue to maintain liquidity and capitalization limits appropriate for their size and future capacity. Hillsdale's assets under administration currently stand in excess of $80 million. All existing and potential fund holdings are continuously monitored for all factors, including those that may affect our ability to exit on a timely basis.

Possible deletions from the TSE 300 Index:

Acetex Aaktion Altagas Anormed Bakbone BPO Properties Burntsand Certciom Co-Steel Dundee Realty Echo Bay Mines Elk Point Resources

FPI GT Group Telecom Heroux Devtek Hollinger Inflazyme Int'l Forest Products Ketch Energy Lions Gate Lorus MDC Corp Microcell

Mosaid O&Y Properties Proprietary Industries Slater Steel Sleeman Breweries Southward Energy Stratos Global Surefire Commerce TLC Laser Trojan Tech. Vector Aerospace Wi-Lan

For more information, please contact:
John Motherwell, MBA, VP Institutional Marketing
Tel: (416) 429-4538
Email: jmotherwell@hillsdaleinv.com