About Amalgamated
Amalgamated Income Limited Partnership (“Amalgamated” or the “Partnership”) is a publicly traded limited partnership (AI.UN on the TSX) whose business is to capitalize on market inefficiencies in the mutual fund limited partnership (“MFLP”), financial services, and real estate limited partnership (“RELP”) sectors in order to provide its limited partners with a diversified income stream.
- MFLPs were issued between 1990 and 1997 and Amalgamated was originally formed to consolidate these. MFLPs are declining royalty streams of income based on the assets under management of various mutual funds. Amalgamated is the only consolidator in this industry. MFLPs include both public and private entities and Amalgamated purchases them through the public market, mini-tenders, or through formal takeover bids;
- Financial Services include mortgages and loans to companies that cannot obtain traditional bank lending but have sufficient assets to secure against. Amalgamated’s focus is on short-term and bridge loans to maximize returns and minimize risk; and
Amalgamated is similar to an investment fund, but Amalgamated is fundamentally different as it takes an active role in its investments in attempting to enhance value by seeking to control or influence management when appropriate.
Additional information on the Partnership and its investments is available on the Amalgamated website at www.aiun.ca. For additional information on Amalgamated, including recent press releases, the Annual Information Form (AIF), annual financial statements, and interim financial statements please go to the Partnership’s profile on SEDAR at www.sedar.com or the Partnership’s website at www.aiun.ca.
Limited Partners are reminded that due to the nature of Amalgamated as defined by the partnership agreement, limited partners are not allocated income for tax purposes on the amount of distributions actually received during the year. Allocations for tax purposes are made based on whether or not they are limited partners at December 31. Any distribution received will represent a decrease in the adjusted cost base of any partnership units held and a potential capital gain (or loss) if the unit is sold prior to December 31. For tax purposes, a limited partner at December 31 will receive an allocation of the Partnership’s income, dividends, and capital losses or gains if held outside a tax deferred plan such as an RRSP, RRIF, or RESP.
Amalgamated’s Advantages
Amalgamated’s strength and a significant part of its growth model is in consolidating illiquid partnerships through cash purchases and unit exchanges. Investors in illiquid partnerships may obtain significant benefits when exchanging their units in various limited partnership units for Amalgamated. Some of the benefits of exchanging for
Amalgamated units include:
- Exchange of limited partnership units can be done on a tax deferred basis;
- Amalgamated units are RRSP eligible and can be margined against;
- Increased frequency of distributions. Currently Amalgamated is paying $0.06 per month.
- Although distributions are received monthly income is only allocated to the holders of record on December 31st, every year.
LIQUIDITY
Through the active management of Amalgamated over the past three years, the following significant events have occurred:
- Market capitalization has increased from approximately $8 million to approximately $15 million;
- Daily trading volume has increased from approximately $9,000 in 2004 to approximately $36,000 in 2007.
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