Malachite Aggressive Preferred Fund (MAPF) has been established to achieve a long-term capital growth in addition to a high level of after-tax income through investment primarily in preferred shares and preferred securities listed on the Toronto Stock Exchange. The tax rates used by the fund in analyzing current and potential investments are based on the marginal rates for the highest tax bracket in Ontario, as advised by the auditors of the fund.
"Malachite" is a semi-precious stone, easily carved and polished for artistic pleasure. The fund is referred to as "aggressive" because the composition of the fund does not necessarily reflect the composition of its benchmark index: it may invest in preferred shares issued by Split Share Corporations, for instance, and is not required to hold such classes of shares as floating rate issues, which are expected to underperform for the foreseeable future.
Administrative History
Perhaps the greatest mistake of my professional life was accepting a position in November 2004 at Portus Alternative Asset Management. They needed Portfolio Managers - I needed salesmen. It seemed like a very good fit, until the roof fell in less than three months later! Click here for details regarding the legal status of the fund during that unpleasant episode.
Performance
The historical performance
of the fund (with a comparison to the Nesbitt Burns 50 index) is
available on a monthly and quarterly basis. Annual performance is available with March, June, September and December end-dates. Annualized performance is available with March, June, September and December end-dates.
Reporting
Unitholders receive
a monthly report from the Investment Manager, together with a statement
of their holdings. Commentaries may be downloaded from the monthly performance page. Additionally, fund statements are audited annually and semi-annual unaudited statements sent to unitholders. Currently available statements are:
June 29, 2001 (semi-annual, unaudited, PDF, 75 KB)
December 31, 2001 (annual, audited, PDF, 21 KB)
June 28, 2002 (semi-annual, unaudited, PDF, 98KB) (see also holdings and transactions)
December 31, 2002 (annual, audited, PDF, 73 KB)
June 30, 2003 (semi-annual, unaudited, PDF, 96KB) (see also holdings and transactions)
December 31, 2003 (annual, audited, PDF, 75 KB)
June 30, 2004 (semi-annual, unaudited, PDF, 96KB) (see also holdings (PDF, 25KB) and transactions (PDF, 45KB))
December 31, 2004 (annual, audited, PDF, 36KB)
June 30, 2005 (semi-annual, unaudited, PDF, 98KB) (see also holdings (PDF, 24KB) and transactions (PDF, 29KB))
December 31, 2005 (annual, audited, PDF, 29KB)
June 30, 2006 (semi-annual, unaudited, PDF, 82KB) (see also holdings (PDF, 24KB) and transactions (PDF, 30KB))
NOTE:You need Acrobat Reader to view PDF files. Click here to get a free version
Portfolio Transactions
In accordance with our
Fairness Policy (PDF, 63KB), we make available the fund's transactions within three months of trade execution:
Transactions in 2001 (PDF, 33KB)
Transactions in 2002 (PDF, 44KB)
Transactions in 2003 (PDF, 47KB)
Transactions in 2004 (PDF, 60KB)
Transactions in 2005 (PDF, 34KB)
Transactions in 2006 to August 31 (PDF, 27KB)
Holdings as of August 31, 2006, are also available (PDF, 24KB).
Purchasing the fund
This fund is sold to investors as a private placement, which therefore exempts it from issuing a prospectus, providing that the investor meets certain requirements. Accredited investors include:
certain institutions, including pension funds and registered charities.
companies and certain
limited partnerships and trusts that have net assets over $5 million
as shown on recent financial statements.
officers, directors or promoters of the issuer and certain of their family members
individuals who either
alone or jointly
with a spouse own financial assets with an aggregate net realizable
value (prior to taxes, but after related liabilities) of over
$1 million.
has net income before taxes exceeded $200,000 in each of the two most recent years, or, when combined with spouse, exceeded $300,000, in either case with reasonable expectation of this situation continuing.
those who will invest at least $150,000 in the fund.
Please contact
us for further information.
Some investors may not be in a position to invest in the fund, but still wish to have a professionally managed preferred share portfolio. Please note that the above conditions do not apply to segregated accounts.
The following documents are available for download:
NOTE:You need Acrobat Reader to view this file. Click here to get a free version.
Fees
Portfolio management fees are payable directly by the client to the Trustee. This structure has been used in order to give clients maximum tax benefits: fees paid in this manner are deductable from income, whereas if paid via the fund, more favourable dividend and capital gain income would be lost to the client. Note that the same favourable tax treatment may be obtained with less paperwork by arranging at the time of subscription to redeem sufficient units to pay the fees.
Fees are payable quarterly in arrears at the following annual rates:
1% annually on the first $500,000
0.75% annually on the next $500,000
0.50% annually on the balance.
The account value used for calculation is the arithmetic mean of the value at the three month-ends in the quarter.
|