Retrocom sets up review committee

The board of directors at Retrocom Growth Fund has established a special committee in an effort to protect the value of the fund’s shares.

The committee has a broad mandate, including strategic asset divestitures, a merger or privatization of the fund, or a wind-up of the fund.

Robert Blakely, Patrick Dillon, Robert Nash and James Henley have been appointed to the committee. Blakely also takes over as chair of the board, replacing Eryl Roberts, who has resigned as a director due to personal employment commitments.

“On behalf of the fund, I would like to thank Eryl Roberts for his tremendous leadership as chair for the past year and for his many contributions as a director since the fund’s inception in 1995,” said Blakely. “I look forward to continuing to serve the shareholders of Retrocom Growth Fund as its new chair.”

Earlier this month, Retrocom said its audited financial results for the last fiscal year would be delayed as the fund struggles with a decline in its value.

“It has come to the attention of the fund that a significant reduction to its net asset value will be required as a result of the annual independent valuation of the fund’s investments,” Retrocom said on January 19.

The labour sponsored fund said it was dealing with “very difficult circumstances,” including share redemption requests that amount to more than its liquid assets, the phasing out of the Ontario tax credit for investors in labour funds and an inability to raise new capital.

The audit is expected to be completed by the end of February, when the fund will release its adjusted net asset value.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com