A golden year for Golden Opportunities.

When Grant Kook, CEO and chairman of Golden Opportunities Fund, launched the province's first labour sponsored investment fund in March of 1999, it's quite unlikely that even a visionary like he could have imagined that in just more than five years, his fund would be the benchmark for labour sponsored funds in Canada. But that's exactly what has transpired, as Golden Opportunities Fund was chosen as the 2004 labour sponsored investment fund of the year at the 2004 Canadian Investment Awards in December.

Every year, the investment community comes together to select and recognize leading performers at the Canadian Investment Awards. The 2004 Awards were held at the Roy Thomson Hall located in downtown Toronto. The black-tie event was attended by the financial industry's top performers and analysts.

The annual awards program, sponsored by key industry organizations including Morningstar Canada, CGI Inc., Canadian Business and Money Sense, celebrates the growth and achievements of the Canadian investment industry. Finalists and winners were chosen by teams of analysts and independent juries, including well-known investment author Gordon Pape.

When accepting the award, Kook said he did so "on behalf of the thousands of shareholders who believed that investing in Saskatchewan works, the investment management team who has committed to a solid investment strategy and above standard transparency, and the board of directors."

Making the honour even more distinctive is that the award was presented for the first time as a new award category. A stringent set of financial and qualitative criteria assisted the selection committee in determining the winner of this prestigious award.

These criteria included the fund's past performance, liquidity, changes in assets, fee structure, redemption rate, management quality, job creation record, social responsibility, clarity of reporting, and marketing initiatives.

"Golden Opportunities is the first choice because of its consistent performance and the role it plays raising money in its province," said the Canadian Investment Awards selection committee, when presenting the award.

The inclusion of labour funds at the Canadian Investment Awards reflects their growing significance and their popularity among investors. Over the years, Canadians have invested over $9 billion into 122 Labour Funds. Labour sponsored investment funds provide opportunities for the average investor to invest in venture capital investments.

Such investments are eligible for RRSPs and offer a tax credit of 15 per cent from the federal government and 20 per cent from the Saskatchewan government on the first $5,000 invested annually. Therefore, a $5,000 RRSP investment for an individual in a 44 per cent marginal tax bracket would generate total tax savings of $3,950 for a net cost of only $1,050.

"When we began, the story was really the opportunity to participate in the 35 per cent tax credit on your investment," Kook concedes. "Now we have a proven track record of providing returns to our shareholders over and above the tax credit. The story now is really the investment opportunities available in Saskatchewan."

Since Golden Opportunities Fund's launch, it has raised more than $45 million in investment capital due to the support of more than 8,000 shareholders. Raising the money is only the first part; venture capital funds don't make money unless they make good investments. Golden Opportunities Fund has maintained a solid investment pace in Saskatchewan.

Indeed when Golden Opportunities Fund was created in March 1999, it adhered to three main objectives, which still are intrinsic to the fund today:

* to provide venture capital for Saskatchewan small and medium-sized businesses to grow and expand, thereby creating new job opportunities at home;

* to provide Saskatchewan investors an investment vehicle where they can invest their money at home; and

* to maximize shareholder returns.

The fund has invested $38 million into 35 of Saskatchewan's top companies. In the past year the fund doubled its investment activity in any previous year by investing $18.2 million in 18 investment transactions.

"Macdonald and Associates has been tracking the venture capital market in Canada for the past 15 years," says Mary Macdonald, president and CEO of Macdonald and Associates Limited, and one of the venture capital industry's most highly respected voices. "We've watched Golden Opportunities Fund strengthen its presence in Saskatchewan since its inception in 1999 and now recognize it to be one of the largest VC investors in the province of Saskatchewan. Congratulations on your impact."

[ILLUSTRATION OMITTED]

"To receive this prestigious inaugural award as Canadian Labour Fund of the Year is truly a perfect ending to a tremendous year at Golden Opportunities Fund," says Kook. "To have the fund recognized for its work and performance across Canada, coast to coast, is confirmation that Golden Opportunities is making an impact on Saskatchewan."

In the past five years the fund has grown to become the top-selling labour fund in the province of Saskatchewan. This kind of activity is jump-starting the province's economy. While venture capital investment across Canada has decreased by almost 60 per cent since 2001, Golden Opportunities Fund's investment activity, during that same time period, increased by more than 300 per cent.

The impact of Golden Opportunities Fund has been felt across the province. Venture capital is important to Saskatchewan as it allows companies to keep economic benefits and jobs here at home and ensures this province's future.

To date, one in every 75 Saskatchewan taxpayers is a Golden Opportunities Fund shareholder. These shareholders have received the benefit of almost $16 million in tax credits on their investment. Golden Opportunities Fund's investee companies generate more than $50 million in economic activity on an annual basis in Saskatchewan, and have supported approximately 1,500 jobs in both urban and smaller rural communities across the province.

"The investment climate within Saskatchewan could be characterized as 'conservative to pessimistic' at best," says Brent Zettl, president and CEO of Prairie Plant Systems Inc., a Golden Opportunities Fund investee company.

"The investment made by Golden Opportunities Fund has encouraged our company that venture capital financing is plausible today," he adds. "Investment into small companies like Prairie Plant Systems is critical to realize new opportunities presented by the combination of advancing technologies and new markets."

Golden Opportunities Fund has been the province's No. 1-selling labour sponsored fund for the past three years. In 2004, there were more sales of Golden Opportunities Fund than all other labour funds in Saskatchewan combined.

"Golden Opportunities Fund has received the highest rating from Fundata based on strong, consistent performance and low volatility," confirms Chris Adair, General Manager, Fundata Canada Inc., "not only indicating that its returns are in the top 20 per cent but that it has consistently outperformed the benchmark in its industry."

Globefund.com, the Globe and Mail's independent rating service reports "Golden Opportunities Fund is the top-performing fund of its type in Canada based on both three-year and five-year returns."

Golden Opportunities Fund's portfolio is diversified across 25 companies in 10 strategic industry sectors that drive the Saskatchewan economy including value-added processing, oil and gas, biotechnology, health care and agriculture. Golden Opportunities invests in leading companies within each respective industry.

Philom Bios is a mature biotechnology company in which Golden Opportunities Fund is the major shareholder. The company posted revenue gains of 29 per cent in 2004 and is projecting another strong year in 2005 as North America's leading producer of inoculants.

Big Quill Resources is Canada's largest manufacturer of potassium sulphate. The company has expanded five times since inception in 1991, increasing its production capacity by 17 times. Golden Opportunities' investment will help fund the most recent expansion that will double production capacity.

Trinidad Energy Services is an oil and gas income trust that is one of the top performing of its kind in Canada. The fund has seen significant gains on its investments in the oil and gas industry.

Golden Opportunities Fund and its investment team are making a difference in Saskatchewan as a major supplier of venture capital to strategic growth companies. Golden Opportunities Fund is delivering outstanding value to shareholders in our province, while creating jobs and economic activity through its investments.

Receiving the Canadian Labour Sponsored Investment Fund of the Year award is a true recognition of Golden Opportunities Fund's solid performance.

Kook is hopeful that national recognition of the Fund's performance will increase Saskatchewan's presence in the eyes of the Canadian investment community, attracting additional venture capital investment to the province.

Written by Keith Moen

Photo by Stuart Kasdorf Photographics