FEATURED PRO: Deb Abbey is president and portfolio manager of Real Assets Investment Management (www.realassets.ca). The Vancouver firm was the first investment management company in Canada to focus exclusively on social investing.

Fund Form: The Social Leaders Fund has returned 3.4 per cent since its inception in September of 2003 and the Social Impact Balanced Fund (Class A) has returned seven per cent since its inception in September of 2003.

Management Expense Ratios: Social Leaders Fund, 2.9 per cent; Social Impact Balance, 2.6 per cent.

Abbey's Perspective: "Lacklustre performance from bonds and equities in the first quarter clearly points to markets that are in a transition, and we can expect lower returns in the future. The sweet spot of the market's cycle, where markets perform very positively and there are few concerns, is now past.

Deb Abbey

"Because most developed economies are near their capacity to grow, monetary policy is becoming less accommodative and economic growth is starting to slow. Interest rates are slowly climbing instead of falling at the hint of some inflation pressure. Corporate profits clearly can't grow as fast as they did in the two years immediately following the low posted after the high-tech bubble.

"Overall, it's still not a bad environment and, despite what may still be described as a 'Goldilocks' environment, valuations are still quite reasonable and as long as investors continue to worry, we should be ok."

First Star

* United Natural Foods Inc. (Nasdaq: UNFI)

* Recent Price: $26.80 US.

* 52-Week Range: $18.89-$34.87.

* Snapshot: United Natural Foods is the largest wholesaler and distributor of organic and natural food products in the U.S.

* CEO: Steven Townsend.

* Head Office: Dayville, Conn.

* Vital Stats (U.S. dollars): Price/Earnings Ratio, 29.8; Revenue (last 12 mos), $1.9 billion; 5-Yr Revenue Growth, 14.9 per cent; Earnings (last 12 mos), $37.3 million; Market Cap, 1.1 billion; Shares Outstanding, 40.9 million.

* Abbey's View: "Consumer interest in a healthier lifestyle is increasing exponentially and this company is well positioned to benefit from long-term growth trends in this food category. The company enjoys a significant competitive advantage mainly due to its extensive and considerably more efficient supply and distribution networks, resulting in the broadest product offering in its segment.

"While margins are characteristically low in distribution, stellar management execution has produced steady revenue and earnings growth, and attractive mid to high teens (percentage) returns on equity and capital. Future earnings growth seems reasonably assured and free-cash generation is increasing. In comparison to Whole Foods Market (Nasdaq: WFMI), United is a much cheaper, better diversified and safer play on the organics/natural food industry."

* Abbey's Risk Rating: Medium.

* Web Watch: www.unfi.com

Second Star

* Church & Dwight Co. (NYSE: CHD)

* Recent Price: $36.02 US.

* 52-Week Range: $26.85-$37.19.

* Snapshot: Church & Dwight is the world's largest producer of baking soda and also produces a broad range of other consumer and specialty products under the Arm & Hammer brand.

* CEO: James Craigie.

* Head Office: Princeton, N.J.

* Vital Stats (U.S. dollars): Current Price/Earnings Ratio, 26.5; Revenue (last 12 mos), $1.5 billion; 5-Yr Revenue Growth, 13.1 per cent; Earnings (last 12 mos), $88.8 million; 5-Yr Earnings Growth, 18.2 per cent; Market Cap, $2.28 billion; Shares Outstanding, 63.4 million; Dividend Yield, 0.70 per cent.

* Abbey's View: "This company has been environmentally conscious since its inception in 1846. Baking soda is used in place of chemicals and harsh detergents in all kinds of applications. Of over 300 chemicals that are regulated in the U.S., this company uses only four.

"This is a mature, well-managed company that has a long history of delivering excellent financial results to its shareholders. Its deliberate growth strategy and brilliant execution bodes well for continued and above-average returns at a very reasonable price."

* Abbey's Risk Rating: Low.

* Web Watch: www.armhammer.com

Third Star

* Canadian Hydro Developer (TSX: KHD)

* Recent Price: $4.10.

* 52-Week Range: $2.35-$4.

* Snapshot: Canadian Hydro develops low-impact renewable energy sources including wind, run-of-river hydro and biomass facilities.

* CEO: John Keating.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 67.83; Revenue (last 12 mos), $23.7 million; 5-Yr Revenue Growth, 16.9 per cent; Earnings (last 12 mos), $4.2 million; Market Cap, $306.2 million; Shares Outstanding, 74.7 million.

* Abbey's View: "This company is in the forefront of developing clean sustainable energy sources in Canada. Increased environmental awareness from consumers as well as government commitments and utility targets for renewable energy are creating a new and expanding market for low-impact power generation.

"This company is well positioned to benefit from growing demand. With its long and successful track record of developing projects and accelerating growth rate, the installed generation base will double by the end of 2006 and is projected to increase fivefold by 2009. While the growth seems relatively assured, project delays could have short-term impacts on valuation. This is an early- to mid-stage growth/development situation and therefore has high multiples on traditional metrics (ie. price/earnings ratio), which may deter all but bona fide growth investors."

* Abbey's Risk Rating: High.

* Web Watch: www.canhydro.com

Abbey's Edge Record (past 12 mos): +4.1 per cent. Best Pick: Azure Dynamics (TSX: AZD) +43.8 per cent. Worst Pick: Interface (Nasdaq: IFSIA) -38.6 per cent.

Disclosure: The featured stocks are held in the Real Assets Social Leaders Fund. Abbey owns shares in those funds.

NOTE: This feature is presented for information purposes. Investors are advised to do their own research or consult a qualified investment professional before making investment decisions.