The Fund is an unincorporated open-ended trust established in 2002, when it completed its initial public offering. The proceeds were used to fund the purchase of the rental portfolio from Direct Energy Marketing Limited, a utility subsidiary. Direct Energy continues to provide service to the rental portfolio and receives 35% of aggregate rental revenues for its co-ownership interest in certain water heater related assets. The Fund owns and receives the remaining 65%. The Fund has no investment interest in Direct Energy's services business or operations.
Direct Energy will be responsible for originating and servicing the commercial water heaters on substantially the same terms as the existing residential business.
In fiscal year 2004, the Fund reported earnings of $15.7 million on total revenue of $142.9 million compared with a loss of $37.1 million and total revenues of $138.7 million in 2003.