Ernst & Young - Letter to unitholders of Norbourg mutual funds and Evolution mutual funds
Decisions and Freeze and cease trade orders Securities
Montréal - As a result of the complete cessation of the operations of Norbourg Asset Management Inc. (NAM) on August 25, 2005, we are writing, in our role as Provisional Administrator, to provide you with information regarding the management of the Funds and the status ofyour investments in the Funds.
On August 25, 2005, Québec's financial regulator, the Autorité des marchés financiers, obtained from the Québec' s securities decision and review board, the Bureau de décision et de révision en valeurs mobilières (BDRVM), an Order suspending the right of NAM and Vincent Lacroix to carry out any financial transactions involving certain companies of the Norbourg group. Further, this suspension authorized the freezing of these companies' assets. This Order prohibits, in particular, any trading or transactions involving units of any of the Funds, as well as any transactions involving the said companies' own assets, as well as those of their clients and investors.
In addition, the Minister of Finance issued an Order appointing a Provisional Administrator pursuant to the mechanism set out in the Securities Act. Accordingly, on August 25, 2005, Richard Messier, of Ernst & Young Inc., was appointed Provisional Administrator of the Funds in which you are a registered unitholder.
This mandate first consists in taking reasonable means to avoid loss of the assets of NAM, and subsequently, in carrying out their valuation.
As a result of the Order freezing NAM's assets, it is unfortunately impossible for you, since August 25, 2005, to trade or sell your interest in any of the Funds. This situation will remain in place until we have all the necessary information conceming ail unitholders' accounts and have been able to verify the existence and value of the assets referred to by the Fund units listed on the account statements of ail clients.
Given that we assumed control of the assets and records of the Funds and the companies related to NAM only on August 25, 2005, we are unfortunately not yet able to communicate the value of your units or the date on which you will be able to carry out transactions involving any of the Funds or transfer them, as the case may be.
We will be contacting you shortly to obtain further information.
In the meantime, you can visit the Ernst & Young webpage www.ey.com/ca/norbourg to obtain public information regarding the Norbourg Funds and the Evolution Funds. Alternatively, you can leave us a voice message with your contact information at (514) 879-2677.
We regret the inconvenience and concerns that the current situation may cause. However, we wish to assure you that we are doing everything in our power to deal with this difficult and extraordinary situation as expeditiously as possible. Our role is to work in your interest to safeguard your rights and assets.
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Information :
Richard Messier, CA
Provisional Administrator
Ernst & Young Inc.
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