2011 Report - Fortress Mutual Fund Ltd

Fortress Mutual Fund LimitedNotes to Consolidated Financial StatementsSeptember 30, 2011(expressed in Barbados dollars)9 Cash and cash equivalents2011$2010$Cash at bank 48,262,596 28,782,227Short term deposits and money market funds 6,610,607 3,009,250The effective yield on cash and cash equivalents is 0.21% (2010- 0.04%).10 Interest income54,873,203 31,791,4772011$2010$Loans and receivables 395,043 1,004,552Debt securities at fair value through profit or loss 76,360 469,304Cash and cash equivalents 119,719 266,21711 Related party transactions591,122 1,740,073Parties are considered to be related if one party has the ability to control the other party or exercise significantinfluence over the other party in making financial or operational decisions.Fortress Fund Managers Limited serves as manager, registrar and administrator of the Fund. As a result ofproviding investment advisory, management, registrar and administrator services, Fortress Fund ManagersLimited receives a weekly management and administration fee based on the actual net asset value of the Fund,calculated weekly and payable in arrears. The gross management fee amounted to $5,687,018 (2010-$5,147,217) for the year. The administrator fees amounted to $287,628 (2010- $261,887) for the year.Management fees of $208,267 (2010- $187,344) were refunded by Fortress Fund Managers Limited being0.75% - 0.90% of the net asset values of Fortress Caribbean Property Fund Limited, Fortress Caribbean HighInterest Fund and Fortress Global Value Fund shares held by the Fund during the year. This is to avoid doublecharging of management fees on assets invested in related Funds which have the same Manager.The Fund holds 1,559,796 (2010-1,372,654) shares in the Fortress Caribbean Property Fund.The Fund holds 11,059,827 (2010-11,059,827) shares in the Fortress Global Value Fund.Included in investments is a deposit of $900,322 (2010- $900,322) held with Fortress St. Lucia Limited.Interest is payable quarterly based on 3 month LIBOR plus 2.75%. At year end the interest rate on the depositwas 3.12% (2010- 3.04%).(22)