View
5
Download
0
Category
Preview:
Citation preview
1
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
Fortress Caribbean High Interest Fund
Annual Report 2002
DIRECTORS
Mr. Geoffrey Cave C.B.E. – ChairmanMr. David BynoeMr Ken EmerySir Fred Gollop K.A., J.P. Mr. Roger Cave – Investment Manager
INDEPENDENT AUDITORS
PricewaterhouseCoopersChartered AccountantsThe Financial Services CentreBishop’s Court HillSt. MichaelBarbados
SECRETARY
Corporate Services LimitedThe Financial Services CentreBishop’s Court HillSt. MichaelBarbados
CUSTODIAN
FirstCaribbean International BankTrustee BranchBroad StreetBridgetownBarbados
REGISTERED OFFICE
1st Floor, Carlisle HouseHincks StreetBridgetownBarbados
INVESTMENT MANAGER & ADMINSTRATOR
Fortress Fund Managers Limited1st Floor Carlisle HouseHincks StreetBridgetownBarbados
Tel: (246) 431 2198Fax: (246) 431 0514Internet: www.fortressfund.comEmail: invest@fortressfund.com
ATTORNEY AT LAW
Sir Henry Forde K.A., Q.C., MA, LLM (Cantab)Juris ChambersFidelity HouseWildey Business ParkSt. Michael
2
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
3
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
4
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
INVESTMENT OBJECTIVES AND FUND DETAILS
The Fortress Caribbean High Interest Fund aims to achieve thehighest level of income compatible with the preservation of capi-tal by investing in medium to high grade debt and equity securi-ties issued by corporate and government entities with a short tomedium term maturity profile principally in the Caribbean Region.
The Fund issues two classes of shares to the public –Accumulation shares and Distribution shares. Holders of the dis-tribution shares will receive dividends every six months. The firstdividend will be paid on November 30, 2002.
Fortress Caribbean High Interest Fund
May 17, 2002
$1.00 per share
$500.00$100.00 for subsequent investments$100.00 for monthly savings plan
$1.0204$1.0204
$ 17,268,610$ 2,405,457
0.75% per annum of the net assets of the Fund0.20% on the first $30 million in net assets0.175% on the next $50 million in net assets0.15% on amounts over $80 million in net assets
Nil
Up to 2% on amount placed less than 6 monthsUp to 1% on amount placed less than 2 yearsNil on funds placed after 2 years
Fortress Fund Managers Limited
FirstCaribbean International Bank
Weekly on Fridays
Internet: www.fortressfund.comLocal Barbados newspapers
FUND NAME:
LAUNCH DATE:
LAUNCH PRICE:
MINIMUM INVESTMENT:
NET ASSET VALUE PER SHARE: AccumulationDistribution
NET ASSETS: AccumulationDistribution
MANAGEMENT EXPENSES:Investment Manager & Administrator
Custodian
INITIAL CHARGES:
REDEMPTION CHARGES:
INVESTMENT MANAGER & ADMINISTRATOR:
CUSTODIAN:
FUND VALUATIONS:
NAV QUOTATIONS:
INVESTMENT PERFORMANCE
During the year ended September 30, 2002, the increase inthe value of the Fortress Caribbean High Interest Fund shareswas 2.04%.
INVESTMENT PORTFOLIO:
5
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
DIRECTORS’ REPORT
The Fortress Caribbean High Interest Fund was launched in May
2002. The objective of this Fund is to provide investors with the
highest level of income while seeking to preserve the principal
value of their investment by investing in bonds and fixed income
securities. The Fund is uniquely structured with two classes of
shares to meet the needs of different investors. The
"Distribution" shares pay dividends twice per year while the
"Accumulation" shares do not pay dividends but reinvest the
income with the returns being reflected in the share price.
This Fund is very different to the Growth Fund in that the "High
Interest Fund" will be investing in conservative bond and inter-
est bearing securities seeking higher income yields, while the
Growth fund invests in equity securities with the objective of
growth and capital appreciation over the long term. Investors
should expect that the High Interest Fund should provide
returns, which are slightly higher than local long-term govern-
ment bond rates. We expect that the Fund should have less
volatility than the average equity or balanced fund but there is
still price risk resulting from movements in interest rates and
from the potential risk from issuers (Governments and
Companies) to default on their debt obligations.
At the end of September, the Fund had net assets of $19.67
million and had produced return of 2 % after four months. We
expect that the Fund will produce a return of about 6% for the
1st year which, is slightly below our initial target of 7%.
This is primarily due to excess cash in the Fund as two
expected bond investments did not materialize.
The Fund was launched in a period of extremely low interest
rates (40 year lows), in an environment of very high excess liq-
uidity in a country with exchange controls and the absence of
an active secondary market for fixed income securities. The chal-
lenges are further compounded by our country going through a
recession, which has resulted in a reduction in overall corporate
borrowing for expansion. This environment presents both
opportunities and challenges for this type of product. The
opportunity is that deposit rates in commercial banks have
reached the lowest levels ever in Barbados of 2.5 % which will
create strong demand for investment products offering higher
returns, the challenge is that there are very limited opportunities
in terms of new bond issues to invest these funds.
For the reasons listed above, the Directors had capped the size
of the Fund initially to $20m, which was approximately the level
of bond investments, which we had been able to accumulate
prior to the launch of the Fund. The Fund has remained tem-
porarily closed to new investment since it started in an effort to
protect the investors yield, despite receiving strong demand,
simply because there have just been no opportunities which
have met our risk and return objectives.
The Directors are aware that it is going to take time for our pri-
mary and secondary bond markets in Barbados to develop and
we will have to be patient in the development of this Fund, in
taking the opportunities as they arise. We thank you, our share-
holders for your support in helping us to start this new Fund and
we look forward to helping further develop the capital markets
in Barbados and the region.
Geoffrey Cave
Chairman
6
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
INVESTMENT MANAGER’S REPORT
The Fortress Caribbean High Interest Fund has produced a
return of 2.04 % (6.12 %) annualized for the first four months
to September 30th 2002.
The Fund has invested primarily in medium term bonds issued by
Caribbean governments. The bonds in the portfolio have a
maturity mix of 18 % less than 1 year, 68 % between 1 and 5
years and 14 % longer than 5 years. Over 70 % of the invest-
ments are sovereign bonds issued by Caribbean governments,
the majority of which are in US dollars, which significantly
reduces the currency risk.
The Fund has been temporarily closed to new subscriptions
since June 1st 2002 in an effort to preserve the yield. Interest
rates are at 40 year lows which is extremely challenging for the
management of this type of Fund in an environment where the
secondary debt market is virtually non-existent. Governments
and to a lesser extent corporations are using the opportunity to
price very long maturity instruments at extremely low rates. We
have been careful in avoiding these bonds because of the
potential for the bonds to drop significantly in value should
interest rates begin to rise again. There are very few traded
instruments available in the region to hedge against the interest
rate risk and therefore we have been focusing our attention on
medium term Caribbean debt and short-term repurchase agree-
ments for the reinvestment of interest income and bonds that
have matured.
Since the end of the year, we have reduced our exposure to
Jamaica government bonds and we have invested in short-term
repurchase agreements, with the plan to diversify the portfolio
further through an overseas manager.
This fund is well positioned to take advantage of the continued
development of the debt markets in Barbados and the wider
Caribbean. The Fund’s investment opportunities are much more
restricted because of exchange controls in Barbados where the
cross-border mechanism for shares listed on regional exchanges
does not apply to sovereign bonds issued by Caribbean govern-
ments. Interest rates are much lower in Barbados than in other
Caribbean islands and there are very few local corporate bond
issues as most companies still rely on bank overdraft financing.
We expect that this will change over time as the spreads
between savings rates and borrowing rates are still very high,
which will offer opportunities for the creation of more corporate
bonds and other types of asset-backed securities.
Overall, we expect to be patient in protecting the investors yield,
taking only selected local opportunities as they arise and to
grow our regional and overseas portfolios when we can obtain
US funds.
Roger Cave
Manager
7
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
8
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
GENERAL INFORMATION
Fortress Caribbean High Interest Fund ("the Fund") is an openended investment company which was incorporated on May9th, 2002 under the provisions of the Mutual Funds Act ofBarbados. The company maintains its registered office at 1stFloor, Carlisle House, Hincks Street, Bridgetown, Barbados. Theprincipal activity of the Fund is investment holdings in domestic,regional and international fixed income markets.
The Fund aims to achieve the highest level of income compati-ble with the preservation of capital by investing in medium tohigh grade debt and equity securities issued by corporate andgovernment entities with a short to medium term maturity pro-file principally in the Caribbean.
9
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
10
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDBalance Sheet
As of September 30, 2002
(Expressed in Barbados dollars)
Notes
$
Assets
Cash and bank balances 738,265
Accrued Interest 241,142
Available-for-sale securities 5 18,713,935
Total Assets 19,693,342
Current Liabilities
Accounts payable and accrued expenses 18,275
Total assets less liabilities 19,675,067
Issued capital and reserves
Share capital 6 19,193,060
Retained earnings 482,007
Total shareholders’ funds 19,675,067
Net asset value per Accumulation share 6 1.02
Net asset value per Distribution share 6 1.02
11
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDIncome statement
For the period from May 9, 2002, the date of incorporation, to September 30, 2002
(Expressed in Barbados dollars)
Notes
$
Revenue
Interest income 375,634
Amortization of discounts 80,103
Unrealised gain on available-for-sale securities 5 109,413
Total investment income 565,150
Expenditure
Management fees 4 49,264
Custodian’s fees 13,137
Audit fees 15,000
Other fees 5,742
Operating expenditure 83,143
Net profit on ordinary activities 482,007
Earnings per share 0.024
12
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDStatement of Changes in Shareholders’ Equity
For the period May 9, 2002, the date of incorporation, to September 30, 2002
(Expressed in Barbados dollars)
Share Retained TotalCapital Earnings
$ $ $
Issue of shares at inception (June 1, 2002) 18,689,530 - 18,689,530
Redemption of shares (1,761,734) - (1,761,734)
Issue of shares 2,265,264 - 2,265,264
Net Income for the period - 482,007 482,007
Balance as at September 30, 2002 19,193,060 482,007 19,675,067
13
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDStatement of Cash Flows
For the period from May 9, 2002, the date of incorporation, to September 30, 2002
(Expressed in Barbados dollars)
$
Net profit on ordinary activities 482,007
Adjustment for:
Amortization of discounts (80,103)
Unrealised gain on available-for-sale securities (109,413)
Operating profit before working capital changes 292,491
Net increase in acrued interest (241,142)
Net increase in accounts payable and accrued expenses 18,275
Net cash from operating activities 69,624
Cash flows used in investing activities
Purchase of available-for-sale securities (18,524,419)
Cash flows from financing Activities
Issue of Mutual Fund shares 20,954,794
Redemption of Mutual Fund shares (1,761,734)
Net cash from financing activities 19,193,060
Net increase in cash and cash equivalents 738,265
Cash and cash equivalents - beginning of period -
Cash and cash equivalents - end of period 738,265
14
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
1. INCORPORATION AND PRINCIPAL ACTIVITY
The company was incorporated in Barbados on May 9th, 2002
under the Companies Act of Barbados and is licensed under the
Mutual Funds Act 1998-45 of Barbados as an authorised mutual
fund. The company maintains its registered office at 1st Floor,
Carlisle House, Hincks Street, Bridgetown, Barbados. On May 31,
2002 the Fund was closed to new subscriptions in an effort to
protect the existing shareholders.
2. ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of
the financial statements are set out below:
a). BASIS OF PRESENTATION
The financial statements are prepared in accordance with
International Accounting Standards. The financial statements are
prepared in accordance with the historical cost convention as
modified by the fair valuation of available-for-sale securities.
(b). USE OF ESTIMATES
The preparation of financial statements in conformity with
International Accounting Standards requires management to
make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the
reporting period.
(c). FOREIGN CURRENCY TRANSLATION
Assets and liabilities expressed in foreign currencies are translated
at the rates of exchange ruling at the balance sheet date.
Transactions arising during the period involving foreign currencies
are translated and recorded at the rates of exchange prevailing on
the dates of the transactions. Differences arising from fluctua-
tions in exchange rates are included in the Income Statement.
(d). INVESTMENT INCOME
Interest income is recognised in the income statement for all inter-
est bearing instruments on an accrual basis using the effective
yield method. Interest income relates to coupons earned on fixed
income investments.
(e). AVAILABLE-FOR-SALE SECURITIES
The Fund’s investments have been classified as available-for-sale in
accordance with International Accounting Standard 39 (IAS 39),
Financial Instruments: Recognition and Measurement.
All available-for-sale securities are initially recognised at cost and
are subsequently carried at fair value based on quoted bid prices
where available. In the absence of quoted bid prices, the quoted
offer price is used. In the absence of a quoted price on a recog-
nised stock exchange, the security is valued at amortised cost,
which is considered to be a close approximation of the fair value.
Gains and losses arising from changes in the fair value of securi-
ties classified as available-for-sale are recognised in the income
statement as they arise. Average cost is used to compute realised
and unrealised gains on investments.
All purchases and sales of available-for-sale securities are
recognised at trade date, which is the date on which the Fund
commits to purchase or sell the asset.
(f). CASH AND CASH EQUIVALENTS
Cash comprises cash on hand and demand deposits. Cash equiv-
alents are short term, highly liquid investments that are readily
convertible to known amounts of cash which are subject to
insignificant changes in value.
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
15
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
(g). EXPENSES
Expenses are accounted for on an accrual basis. Expenses are
charged to the income statement except for expenses incurred on
the acquisition of an investment, which are included in the cost of
that investment. Expenses arising on the disposal of investments
are deducted from the disposal proceeds.
(h). NET ASSET VALUE PER REDEEMABLE MUTUAL FUND SHARE
The net asset value per each class of redeemable mutual fund
share is calculated by dividing the net assets attributable to the
individual class of share at the valuation date by the number of
redeemable shares in issue of that class at the valuation date.
(i). TAXATION
The Fund is licensed as an authorised mutual fund under the
Mutual Funds Act, 1998-45 of Barbados. In calculating the
assessable income of the Fund for tax purposes, the Income Tax
Act provides for a deduction of up to a 100% of the income that
is designated to be the income of the Fund shareholders. All of
the profits of the Fund are designated to the Fund’s Class "A’
shareholders and consequently the Fund has no taxable income.
3. USE OF FINANCIAL INSTRUMENTS
The objective of the Fund is to achieve the highest level of
income compatible with the preservation of capital by invest-
ing in medium to high grade debt and equity securities issued
by corporate and government entities with a short to medium
term maturity profile primarily in the Caribbean.
The Fund is exposed to market price risk, interest rate risk,
credit risk, liquidity risk and currency risk from the financial
instruments it holds. The risk management policies employed
by the Fund to manage these risks are discussed below:
Fair Value
Available-for-sale securities are carried at their market value as
disclosed in note 2E. The carrying value of the other financial
assets and liabilities are considered reasonable estimates of
their fair value.
Market Price Risk
The Fund’s interest rate securities, are susceptible to market
price risk arising from uncertainties about future prices of the
instruments.
The Fund’s market price risk is managed through diversification of
the investment portfolio. A summary of the overall balance sheet
market exposures at September 30, 2002 is disclosed in note 5.
Interest Rate Risk
Differences between expected contractual repricing or maturity
dates and changes in market interest rates may expose the fund
to interest rate risk. The company’s exposure to interest rate risk
on its financial assets, is disclosed in note 5.
Credit Risk
Credit risk is the risk that an issuer or counterparty will be unable
or unwilling to meet a commitment entered into with the Fund.
All transactions in listed securities are settled / paid for upon deliv-
ery using approved brokers. The risk of default is considered min-
imal since delivery of securities sold is only made once the bro-
ker has delivered payment. On a purchase, payment is made
once the securities have been received by the broker. If either
party fails to meet their obligation, the trade will fail.
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
16
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
Liquidity Risk
The Fund is exposed to liquidity risk due to the relatively unde-
veloped nature of the secondary market for fixed income secu-
rities in the Caribbean.
Currency Risk
The Fund holds assets denominated in currencies other than
Barbados dollars, the measurement currency of the Fund.
Consequently, except where assets are denominated in United
States dollars or Barbados dollars, the Fund is exposed to cur-
rency risk since the value of the securities denominated in other
currencies will fluctuate due to changes in exchange rates. The
Fund’s policy is not to enter into any hedging transactions.
4. RELATED PARTIES
Parties are considered to be related if one party has the ability
to control the other party or exercise significant influence over
the other party in making financial or operational decisions.
Fortress Fund Managers Limited serves as manager and registrar
of the Fund. As a result of providing investment advisory, man-
agement and registrar services, Fortress Fund Managers Limited
receives a weekly management fee based on the actual net
asset value of the Fund, calculated weekly and payable in
arrears, at the rate of 1.75% per annum. During the year man-
agement fees paid to Fortress Fund Managers Limited amount-
ed to $49,264.
On June 1, 2002 bonds amounting to $3,108,895 and
$8,993,843 were purchased from the Fortress Mutual
Fund and Fortress Caribbean Property Fund respectively
at their carrying value, in exchange for units in the fund
of an equivalent amount. (See note 5)
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
17
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
5. AVAILABLE-FOR-SALE SECURITIES
Cost Estimated Market Value$ $
Due within one year 3,337,515 3,375,169
Due after one year but within five years 12,527,014 12,684,436
Due after 5 years 2,659,890 2,654,330
18,524,419 18,713,935
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
The company believes that there are no significant concentrations of credit risk associated with its investments. The detailed port-folio of available-for-sale securities is as follows:
Security Maturity Coupon Cost Market Value Holding %$
Barbados
BET Building JV Cert. - Series 5 1/30/03 - 122,201 125,152 0.67%BET Building JV Cert. - Series 7 7/30/03 - 609,053 624,255 3.34%BET Building JV Cert. - Series 9 1/30/04 - 619,002 634,901 3.39%BET Building JV Cert. - Series 10 4/30/04 - 128,685 132,043 0.71%BET Building JV Cert. - Series 12 10/30/04 - 194,905 200,253 1.07%BET Building JV Cert. - Series 15 7/30/05 - 430,193 442,827 2.37%Government of Barbados Bond 12/31/12 8.00% 1,000 1,000 0.01%Government of Barbados Bond 12/31/06 7.00% 9,000 9,000 0.05%
2,114,039 2,169,431 11.59%
Jamaica
Government of Jamaica Bond 6/12/05 10.875% 1,480,125 1,522,950 8.14%Government of Jamaica Bond 6/12/05 10.875% 1,269,910 1,286,520 6.87%Government of Jamaica Bond 6/12/05 10.875% 1,512,000 1,491,000 7.97%Government of Jamaica Bond 9/30/03 11.75% 600,000 619,500 3.31%Government of Jamaica Bond 6/12/05 10.875% 1,532,526 1,511,661 8.08%Government of Jamaica Bond 6/20/17 10.625% 301,500 294,750 1.57%
6,696,061 6,726,381 35.94%
-7.63%-7.70%
-7.80%
-7.85%-8.10%
-8.40%
18
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
The detailed portfolio of available-for-sale securities is as follows:Security Maturity Coupon Cost Market Value Holding %
$ $
OECS
St. Kitts/Nevis Government Cert. – Series 6 1/24/05 - 1,438,566 1,478,654 7.90%
St. Kitts/Nevis Government Cert. – Series 7 7/24/05 - 1,026,640 1,056,218 5.64%
St. Kitts/Nevis Government Cert. - Series 12 1/24/08 - 885,381 916,853 4.90%
Government of St. Lucia Bond 1/31/03 7.25% 2,006,262 2,006,262 10.72%
5,356,849 5,457,987 29.17%
Belize
Government of Belize Bond 8/15/12 9.50% 2,357,390 2,358,580 12.60%
2,357,390 2,358,580 12.60%
International
Lehman Brothers Callable Bond 7/24/05 9.125% 2,000,080 2,001,556 10.70%
2,000,080 2,001,556 10.70%
Total Portfolio 18,524,419 18,713,935 100.00%
The unrealised gain on the available-for-sale securities of $109,413 has been recorded in the income statement.
-7.65%
-7.95%
-8.70%
19
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
6. SHARE CAPITALNo. of Shares $
Common Shares
Authorised and Issued
A maximum number of Common Shares 1,000 1,000
Redeemable Accumulation Shares Authorised
An unlimited number of "Redeemable Accumulation Shares"
Balance – issued on inception 16,360,081 16,360,081
Issued during the period 2,236,609 2,245,238
Redeemed during the period (1,738,369) (1,761,734)
Accumulation Shares – end of period 16,858,321 16,843,585
Redeemable Distribution Shares Authorised
An unlimited number of "Redeemable Distribution Shares"
Balance – issued on inception 2,328,449 2,328,449
Issued during the period 19,836 20,026
Distribution shares – end of period 2,348,285 2,348,475
Total Share Capital 19,207,606 19,193,060
20
For
tres
s C
arib
bean
Hig
h In
tere
st F
und
6. SHARE CAPITAL CONTINUED
Class of Shares Shares Increase in Total value Total no. Net asset Share Issued Redeemed Net Assets of shares of shares Value
$ $ $ $ $
Accumulation 18,605,319 (1,761,734) 423,025 17,266,610 16,858,321 1.02
Distribution 2,348,475 - 58,982 2,407,457 2,348,285 1.02
Total 20,953,794 (1,761,734) 482,007 19,674,067 19,206,606
Common SharesThe 1,000 common shares held by the Fund Manager, carry full voting rights, but do not share in the profits of the Fund. Onwinding up of the Fund, the shares would be repaid at par.
Redeemable Mutual Fund SharesEach class of Fund shares is entitled to share in the net income and net capital gains of the Fund. Fund shareholders shall not beentitled to vote at meetings of shareholders of the Fund save and except as permitted under the Companies Act CAP 308 and ofthe following:
(i) Disposal of the assets of the Fund(ii) Any change or abrogation of the rights attached to the shares or any variation affecting the rights attached to the Fund shares(iii) Any proposed amalgamation of the Fund with another company or any amalgamation of the Fund with another Mutual Fund(iv) Any proposed liquidation or dissolution of the Fund.
Redeemable Distribution SharesThis class of shares will distribute substantially all of its income accruing to the investors in the form of dividends, which will bepaid semi-annually. No dividends have been distributed during the year.
Redeemable Accumulation SharesThis class of shares will not pay dividends but will retain all of its income accruing to the benefit of the net asset value of theshareholders of this class.
FORTRESS CARIBBEAN HIGH INTEREST FUND LIMITEDNotes to the Financial Statements
For the Period Ended September 30, 2002
Recommended