February 18, 2005

Retrocom changes up how dealers are compensated for sale of shares

By Grant Cameron

staff writer

Retrocom Growth Fund Inc. has announced changes to the manner in which registered dealers are compensated for the sale of two types of shares.

The changes are effective immediately and affect the way commissions are paid on the sale of Class A Series I and Class A Series V shares of the fund.

Retrocom Investment Management Inc., the manager of the fund, will pay all upfront sales commissions on behalf of the fund on the sale of the shares.

Previously, the commissions were paid to registered dealers directly by the fund.

Eryl Roberts, chairman of the fund and executive vice-president of the Electrical Contractors Association of Ontario, says the change is a good one for investors.

“We believe this to be a very positive change for investors in the fund as it preserves the cost structure to which shareholders have become accustomed.”

The management firm will receive a fee from the fund for services relating to the payment of sales commissions paid on the two types of shares.

The fee will be equal to the sales commissions paid by the management firm on the issue of the shares minus any applicable redemption fees.

Retrocom says the changes will be described in more detail in an amended and restated prospectus that is expected to be filed soon by the fund.

Retrocom is a labour sponsored investment fund corporation established in 1995.

The Retrocom Growth Fund currently has assets of more than $70 million invested in the commercial and residential construction, resort condominium, sports entertainment and facilities management and tourism sectors.

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