Covington Venture Fund Inc. – Series VI Honours Investment Objective by December 15, 2015 (the “Capital Repayment Date”)
Notice to all Shareholders: Covington Venture Fund Inc. - Series VI Honours Investment Objective by December 15, 2015 (the "Capital Repayment Date")
This communication is to notify you, as a holder of Class A Shares, Series VI of Covington Venture Fund Inc., formerly Venture Partners Balanced Fund Inc., (the “Fund”), that: (i) the Fund has met one of its objectives by being in a position to return investors’ capital in an amount equal to the subscription price paid for the Class A Shares of the Fund on or about the Capital Repayment Date; and (ii) the Fund has determined that the most efficient manner in which to effect the objective of returning the original subscription amount of your Class A Shares by the Capital Repayment Date of December 15, 2015 is through the Fund’s normal redemption process.
At the time of writing to you, the net asset value per share is $6.68. In order to preserve liquidity of the Covington Venture Fund, Class A Shares Series VI, both the Manager and Sponsor of the Fund have accrued but not collected fees since March 2004. These accrued fees are due and payable on demand and are reflected in the net asset value of the Class A Shares, Series VI. In order to honour the investment objective, a portion of these accrued fees will be waived in order to increase the net asset value of the Class A Share to the original subscription price of $10 per Share.
If investors wish to receive $10 per share by way of a return of their capital on or about the Capital Repayment Date, as was contemplated in the Fund’s prospectus dated December 18, 2002, they are now entitled to redeem that amount from their account. Investors wishing to redeem the full amount of their investment will be entitled to do so. The Fund anticipates that it will be in a position to maintain this share price, until March 31, 2016 after such time, any fee waivers shall cease.
In the event that an investor chooses not to redeem, or to redeem a portion of their investment, the Fund will continue to invest the remainder of their investment in accordance with its investment strategy.
This notice is being provided to you for informational purposes. You are not required to take any action due to the information described in this notice unless you wish to receive a return of your original investment amount on or about the Capital Repayment Date. If so, it is recommended that you contact your investment advisor.
Covington Capital Corporation