Fund Continues To Build On Positive Performance Record
TORONTO, Jan. 12 /CNW/ - Covington Capital Corporation ("Covington") is
pleased to announce that its technology focused fund - Covington Strategic
Capital Fund Inc. (the "Fund") completed its second portfolio exit of calendar
2008. The Fund, launched in 2003, has provided investors with positive annual
performance figures since inception and has become one of the most notable
performers in the retail venture capital fund asset class as well as within
the mutual fund domain.
The acquisition of Cyence International Inc. ("Cyence"), by Davis +
Henderson Income Fund's (TSX: DHF.UN) Filogix Segment. ("Filogix") for $38
million, follows the Fund's first portfolio exit which occurred earlier this
year. PlateSpin Ltd. was acquired by Novell, Inc. for $205 million in March of
2008. "We are extremely proud of the fact that despite current economic
conditions, Covington has completed its second successful portfolio exit in
less than a year," states Scott Clark, Managing Director, Covington.
"We believe that the Cyence transaction in the Covington Strategic
Capital Fund further emphasizes the strength of the Fund's investment
portfolio and demonstrates that, given the right management strategy and
portfolio company, exit opportunities are achievable even in these turbulent
markets," adds Phil Reddon, Managing Director, Covington.
What makes Strategic Capital stand out is the amount of success it has
had in such a short period of time. It is not often that a venture fund,
launched less than five years ago, would have been able to achieve two very
successful exits so early on. As one of the top performers in the retail
venture asset class, the Fund has provided investors with positive performance
since inception with returns of: 1 Year 28.95%, 3 Year 11.87%, and Inception
of 7.84% - over and above the 30% tax credits investors receive with their
annual purchase. These returns compare favourably with those of the TSX
Composite Index which has posted returns of -32.95%, -5.17%, 3.62%, and 7.04%
on a 1, 3, 5, and since inception basis respectively. (Source: globefund.com
Covington has employed a very conservative, managed approach to the Fund
that includes a steady fund raise and highly selective investment criteria
that has resulted in a smaller, highly managed investment portfolio. "We
believe that our structured, equity-style investment approach is the primary
reason that the Fund has performed well over the long-term and continues to
out-perform the TSX index," adds Clark.
About Covington Group of Funds
Founded in 1995, Covington Group of Funds (www.covingtonfunds.com) is one
of Canada's largest and most experienced venture capital fund providers.
Covington Group of Funds manages approximately $300 million in venture capital
assets on behalf of institutional and retail investors. These funds invest in
small-and-medium businesses throughout many industry sectors. The Covington
Group of Funds, headquartered in Toronto, is an affiliate of Affiliated
Managers Group, Inc. AMG is an asset management company with equity
investments in a diverse group of boutique investment management firms.
Important information about Covington Funds is contained in their
prospectus. Commissions, trailing commissions, management fees and expenses
all may be associated with this investment. Covington's Funds are not
guaranteed, their value changes frequently and past performance may not be
repeated. The indicated rates of return are the historical annual compounded
total returns, including changes in value and do not take into account sales,
redemption or optional charges or income taxes payable by any shareholder that
would have reduced returns. Inception date for Covington Strategic Capital
Fund January 2004.
For further information:
For further information: Fiona Robertson, EVP Sales and Marketing,
Covington Group of Funds, (416) 365-9155, firstname.lastname@example.org