Veterans of the investment fund business today announced the launch of ROI Fund, which offers a first-ever compensation structure that ensures investors are paid dividends first before the fund manager receives any performance bonus.

The ROI Fund will invest in stable businesses with established customer bases, strong management teams and cash flow in the manufacturing, health services and financial services sectors. The fund will only invest using debt.

“Investors have had enough volatility,” says John Sterling, chief executive officer of ROI Fund. “People want regular returns, ways to reduce taxes, and they want to know the people managing their money are rewarded if they do a good job. We’ve designed the ROI Fund to respond to these investor concerns.

The fund is targetting Canadian companies with revenues of between $10 to $50 million, assets up to $50 million and less than 500 employees. As a result, investors in the fund qualify for provincial and federal tax credits associated with promoting growth in Canadian businesses.”

ROI Fund is eligible for RRSPs and is available in Ontario through financial planners and brokers. Investments of up to $5,000 are eligible for federal and provincial tax credits.