A Message To Skyline Clean Energy Fund Investors From Rob Stein, President, Skyline Energy - Skyline Wealth

A Message To Skyline Clean Energy Fund Investors From Rob Stein, President, Skyline Energy

Dear valued Skyline Clean Energy Fund (SCEF) investor,

Thank you for your continued investment in SCEF (“the Fund”). The Fund has enjoyed a great start to 2020, with several accretive renewable energy assets under contract that we are working to close before the summer season, with the objective of maximizing solar generation.

At the same time, we recognize that we are all currently in the midst of public market and social turmoil, especially heightened with the global COVID-19 (coronavirus) pandemic. We want to explain the extent to which the Fund will be affected by these events and reassure you that regardless of the turbulent market environment, Skyline Energy’s1 team continues to spend 100% of its time optimizing and maximizing the Fund.

Every clean energy asset in SCEF’s portfolio is backed by the Ontario provincial government through the Independent Electricity System Operator (IESO). IESO is rated A (high) with a stable outlook by DBRS Morningstar, and Aa3 with a stable outlook by Moody’s, both global credit rating agencies that represent investment-grade ratings.

SCEF’s revenue is generated through fixed long-term government contracts where the only variables are downtime (due to general maintenance or equipment failure) and weather-related events. Neither of these variables are correlated in any way to public market performance.

The coronavirus outbreak has had a substantial impact on consumer habits. As consumers minimize their time in public places, they are spending less on both goods and services. The pandemic has also undoubtedly had a huge effect on the public markets, with governments implementing drastic monetary and fiscal policy measures across the globe (among which are cuts to interest rates). We have yet to see the virus’ impact on lagging macroeconomic indicators; this being said, falling interest rates are the only macroeconomic factor that could tangibly affect the Fund. In the case of the Fund, falling interest rates can be regarded as a positive, as this presents an opportunity to finance currently unleveraged assets, or even refinance currently leveraged assets at improved rates.

For now, the largest potential negative impact of coronavirus on the Fund would be from a delay in receiving materials (e.g. solar panels) from China and other countries. Delays in the delivery of materials could potentially delay our plans to optimize several assets in order to surface additional revenue, but by no means are we depending on these additional revenues to maintain our growth targets. In terms of general maintenance of the assets, SCEF has sufficient materials on hand through to the end of 2020.

With these very minimal factors causing a correlation between public market performance and your SCEF investment, Skyline Energy is confident that SCEF continues to be a safe and secure place for your investment. Growth is targeted at 7.5%+ year over year, with revenue tied to energy generation rather than market conditions. In other words, it’s “business as usual;” SCEF will continue to invest in accretive assets and ensure that they are operational when the sun is shining. As Jason Castellan, CEO of Skyline Group of Companies2 says, “We have to make hay when the sun is shining.” The sun continues to shine bright on SCEF.

Wishing you a happy and healthy spring,

Rob Stein

President, Skyline Energy

1. Skyline Energy is the legal trade name of Skyline Clean Energy Asset Management Inc.

2. Skyline Group of Companies is the umbrella term used to generally refer to all associated entities including Skyline Energy.

The information provided within this Website is for general information purposes only, and does not constitute an offer of, or solicitation for, the purchase and sale of any securities, or advice under any circumstances. Skyline Wealth Management Inc. (“Skyline Wealth”) is an Exempt Market Dealer registered in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Québec, and Saskatchewan. Important information with respect to the funds are set out in their confidential offering documents, which should be reviewed prior to investing, as they include important information on fees and risk factors. There is no active market through which the securities may be sold, and redemption requests may be subject to monthly redemption limits. Prospective investors must make an independent assessment of such matters in consultation with their own professional advisors. Sales of interests in any investments offered by Skyline Wealth are only made to certain eligible investors pursuant to regulatory requirements and available exemptions. Some of the investment products offered by Skyline Wealth are from related issuers. A full list of issuers related to Skyline Wealth and details of the relationship between them is available upon request. Information provided herein is current as at the date of publication and Skyline Wealth does not undertake to advise the reader of any changes.