TORONTO, May 13, 2021 (GLOBE NEWSWIRE) -- Core Canadian Dividend Trust (TSX: CDD.UN) ("CDD"), Top 10 Canadian Financial Trust (TSX: TCT.UN) ("TCT"), Canadian Utilities & Telecom Income Fund (TSX: UTE.UN) ("UTE") and U.S. Financials Income Fund (TSX: USF.UN) ("USF") announced today that the board of directors of Strathbridge Asset Management Inc., the manager of the funds (the "Manager"), has approved a proposal that would result in the merger of CDD, TCT, UTE, USF and Mulvihill Premium Yield Fund (TSX: MPY.UN) ("MPY") (the "Merger Proposal").
If the Merger Proposal is implemented, MPY will be the continuing fund and holders of units of CDD ("CDD Units"), TCT ("TCT Units") and UTE ("UTE Units") will become holders of Class A Units of MPY and holders of Class A units and Class U units of USF (collectively, "USF Units") will become holders of Class F Units of MPY. MPY is managed by the Manager and is an open ended non-listed public mutual fund.
MPY has been designed to provide unitholders with (i) high quarterly income on a tax efficient basis; (ii) long-term capital appreciation through investment in a portfolio of high quality equity securities; and (iii) lower overall portfolio volatility. MPY writes options to seek to earn tax efficient option premiums, reduce overall portfolio volatility and enhance the portfolio's total return. In order to achieve its investment objectives, MPY (i) invests in an actively managed portfolio comprised of securities from the S&P/TSX Composite Index and S&P 500 Index; and (ii) uses option writing strategies to generate an enhanced tax efficient yield.
The merger is expected to be beneficial to unitholders of CDD, TCT, UTE and USF for the following reasons:
If the Merger Proposal is implemented, unitholders of CDD, TCT, UTE and USF will have the opportunity to redeem their CDD Units, TCT Units, UTE Units and USF Units for a redemption price equal to the net asset value per CDD Unit, TCT Unit, UTE Unit and USF Unit, as applicable, if they choose not to participate going forward.
Special meetings of unitholders of the funds have been called and will be held on June 18, 2021 to consider and vote upon the Merger Proposal. In order for the Merger Proposal to become effective, it must be approved by a simple majority of unitholders of CDD, TCT, UTE and USF present in person or represented by proxy at the applicable special meeting. If approved, the Merger Proposal for CDD, TCT and USF unitholders is expected to be implemented on or about July 5, 2021, and for UTE unitholders, is expected to be implemented on or about July 6, 2021. Additionally, implementation of the Merger Proposal is subject to securities regulatory and stock exchange approvals.
Details of the Merger Proposal will be outlined in a joint management information circular to be sent to unitholders of each of the funds in connection with the special meetings. Copies of the circular will also be available on www.sedar.com and www.strathbridge.com.
For further information, please contact your financial advisor, call our investor relations line at 416.681.3966, toll free at 1.800.725.7172 or visit www.strathbridge.com.
John Germain, Senior Vice-President, CFO | Strathbridge Asset Management Inc. 121 King Street West Suite 2600 Toronto, Ontario, M5H 3T9 416.681.3966; 1.800.725.7172 www.strathbridge.com [email protected] |
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
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