University Avenue Management Ltd. today announced plans to wind up the University Avenue Canadian Small Cap Fund as soon as December 1, depending on the ability of the fund to liquidate its positions.

The fund is not currently able to redeem Units as it has no liquid assets available to it.

The fund was initially formed to invest primarily in common shares and other equity investments of Canadian issuers with small capitalization. The fund has not issued Units since December 2001 and ceased offering in July 2002.

Through attrition due to net redemptions and the deterioration of investee company web-based businesses, all of the fund’s investments at this period of time are illiquid and the fund is not in a financial position to satisfy redemption requests made by its unitholders.

Michael Spengemann, the fund’s portfolio manager said in a news release that; “Every effort is being made to liquidate the remaining positions in the fund and we are confident that value will be recouped from these negotiations. We estimate that within 60 days there will be liquid assets available for distribution to the unitholders.”

University Avenue has determined that it is in the best interests of the remaining unitholders to wind up the fund, to liquidate the balance of its assets as soon as possible, and to distribute the realizable assets to unitholders without any further redemptions.

The firm will seek unitholder approval for the termination of the fund at a special meeting to be held on or about October 18, in Toronto.

According to the firm, all of the costs associated with the termination of the fund will be borne by the manager. No management fees are being charged to the fund at this time. Investors are encouraged to speak with their financial advisors to review their investment portfolios in order to ensure appropriate asset allocation is maintained.