the global real estate securities market is inefficient relative to that of the direct real estate or broader equitiesmarkets. Managed by a specialized real estate manager, the Fund’s investment strategy has been designed tocapitalize on these pricing inefficiencies in order to deliver a stable income stream acquired at a price that theManager believes does not reflect the long-term value of the underlying assets. Furthermore, FSX Securities CanadaInc. (the
“Global Investment Advisor”
) believes that current pricing in global equity markets provides the Fundwith the opportunity to assemble a global portfolio of prime real estate securities at prices that generate attractive,stable yields with the potential for capital appreciation.The net proceeds of the Offerings will be invested in a globally diversified Portfolio of securities issued inrespect of real estate situated primarily in the world’s industrialized economies. While the Fund intends to investprimarily in publicly traded real estate securities, up to 20% of the Fund’s Total Assets (as hereinafter defined) maybe invested directly in Canadian real estate or mortgages secured by Canadian real estate (collectively,
“Direct RealEstate Investments”
) where the Global Investment Advisor believes it is the most efficient way to access desiredreal estate. The Fund builds upon the Manager’s history of investing in real estate that offers secure and growingdividend yields while limiting volatility and protecting capital.
Timbercreek Asset Management Ltd. provides fund management services to the Fund. The Manager, awholly owned subsidiary of Timbercreek Asset Management Inc. (“
”), is an investment managementcompany that employs a conservative and risk-averse approach to real estate based investments. The Manager andits affiliates currently manage approximately $1.4 billion in real estate related assets, including direct ownership andmortgages. The Manager acts as trustee and manager of the Fund and provides, or arranges for the provision of, alladministrative services required by the Fund. See “Organization and Management Details of the Investment Fund”.
Global Investment Advisor
The Manager has engaged the Global Investment Advisor to provide portfolio management services to theFund, with Corrado Russo acting as lead portfolio manager (the “
”). The Global InvestmentAdvisor is a wholly owned subsidiary of Forum Securities Limited (“
”), which is an affiliate of Forum Partners Investment Management LLC (“
”). Forum Securities provides a platform for investment in global public real estate securities with over $900 million in assets under management as at December 31, 2010. Since inception, Forum Securities has demonstrated the ability to continually beat its benchmark whileemploying similar investment strategies to the Fund. On June 30, 2009, the Global Real Estate Securities team atCiti joined Forum Partners and created Forum Securities. Forum Securities and Forum Partners shall provide theGlobal Investment Advisor with such individuals and resources as are necessary to assist the Global InvestmentAdvisor in discharging its obligations to the Fund. See “Organization and Management Details of the InvestmentFund”.
The Fund intends to continue to make quarterly distributions to Unitholders of record on the last BusinessDay of each calendar quarter (each, a “
Distribution Record Date
”). Distributions will be paid on a Business Daydesignated by the Manager that will be no later than the 15th day of the following month (each, a “
”). The quarterly distributions are currently targeted to be $0.21 per Unit ($0.84 per annum). TheFund does not have a fixed quarterly distribution but annually determines the expected distribution amount in Marchof each year. However, in respect of the March 2011 determination, in light of the Offerings, the Fund hasdetermined that it intends to maintain a quarterly distribution of $0.21 per Unit ($0.84 per annum) until the nextannual determination in March 2012. In addition, the Fund will allocate the next quarterly distribution as follows:Unitholders of record on February 28, 2011 will be entitled to receive a distribution of $0.14 per Class AUnit or Class B Unit, as applicable, to be paid on or about March 15, 2011 (the “
”);the Advanced Distribution is equivalent to two-thirds of the quarterly distribution per Class A Unit and Class BUnit, respectively. A further first quarter distribution will be paid on April 15, 2011 to Unitholders of record onMarch 31, 2011 of $0.07 per Class A Unit or Class B Unit, as applicable. This is equivalent to one-third of thetargeted quarterly distribution per Class A Unit and Class B Unit, respectively.