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The Algonquin Power Venture Fund aims to provide investors
with potential for predictable yield and long-term capital appreciation
by investing up to 75% of the Fund’s assets (the “Venture Portfolio
Assets”) in a diverse group of small and medium-size Canadian
businesses primarily engaged in electric power generation, distribution
and infrastructure. The Venture Portfolio Assets will be invested
in liquid securities while the Manager is actively searching
for suitable investments in small and medium-size Canadian businesses.
In addition, the Algonquin Power Venture Fund will maintain
at least 20% (at the last day of the preceding financial year)
of the net asset value of the Fund in liquid securities. This
portion of the portfolio will provide liquidity that would not
be available in a portfolio comprised entirely of investments
in small and medium-size Canadian businesses.
The Manager will ensure the Algonquin Power Venture Fund is
provided with cash reserves management services in accordance
with the cash management and investment guidelines adopted by
the Board of the Algonquin Power Venture Fund.
Management believe that the cash management and investment
guidelines adopted by the Board of Directors of the Algonquin
Power Venture Fund will stipulate that:
The liquid portion of the portfolio will be invested in an effort
to:
- Achieve a rate of return higher than 5 year GICs;
- Generate a constant income for the Algonquin Power Venture
Fund;
- Comply with Provincial undertakings; and
- Minimize capital tax.
To meet these objectives the liquid portion of the portfolio
will be invested as follows:
- Government and corporate fixed income securities with a
minimum investment grade of Single A – Low (at time of purchase);
and
- No more than 5% exposure to any one issuer.
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