High Income Fund Objective
The objective of the High Income Fund is to achieve a 6%+ cash-on-cash annual yield through investing in securities which offer high current income distributions. While the form of the distribution (interest, dividend, capital distribution) may vary by security type, the goal is to provide Fund owners an opportunity to earn high, stable income from opportunities unique to small capitalization securities.
The fund seeks high yielding securities irrespective of income of income type. While there is a bias to Preferred Share securities because of their tax efficiency, the Fund has no specific asset class guidelines. high yield and the stability/sustainability of that high yield are the primary investment criteria of the Fund, based on our valuation assessment of the company. As high yield securities are in many cases equity securities with yield, our investment decisions rely heavily on our assessment of management skill and industry outlook.
The Fund is less concentrated on its holdings, typically owning between 15-20 names. For liquidity purposes, no more than 40% of holdings (book value) may be in companies with market capitalizations under $500 million and no more than 50% may be in private or unlisted securities. From time to time the Fund may utilize short sales and/or options to protect capital and enhance income.
Subscriptions and redemptions are available monthly. Redemptions require a 30 day written notice to the fund manager (Commencing June 2008, new subscribers require minimum 2 year term for no penalty – 5% penalty for first 12 months, 4% penalty for 12 to 24 months, 3% penalty for 24 to 36 months, 2% penalty for 36 to 48 months, no penalty thereafter)
Fees include a 1.25% per annum management fee plus a 20% profit participation. All fees are paid quarterly.
Transfer Agent and Custodian
BMO Nesbitt Burns
Silver Gold Glatt Grosman
Baldwin Anka Sennecke Halman LLP
Equity Transfer Services