Marret Asset Management Inc. Announces Rebalancing of the Underlying Portfolios of the Marret Multi-Strategy Income Fund

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TORONTO, June 29, 2012 /CNW/ - Marret Multi-Strategy Income Fund (TSX:MMF.UN) (the "Fund") is a closed-end trust that was created to provide investors with attractive, risk adjusted returns and tax advantaged distributions through exposure to actively managed investment portfolios consisting primarily of income generating securities (the "Underlying Portfolios") held by Marret MSIF Trust (the "Trust").  The Fund obtains exposure to the Underlying Portfolios of the Trust through a forward agreement.

Today, the Fund's manager, Marret Asset Management Inc. ("Marret") announced a rebalancing of the Underlying Portfolios of the Trust to take effect on August 1, 2012 or as soon as possible thereafter (the "Rebalancing Date").  As part of this rebalancing, Marret also announced that it has terminated the sub advisory agreement with RCM Partners Inc. effective July 31, 2012, which will mean that the RCM Special Situations Portfolio will no longer be one of the Underlying Portfolios.  In addition, the allocation to the East Coast Performance Portfolio will be reduced to 5% from 15% and the allocation to the WARATAH Income Portfolio will be increased to 30% from 10%.

The effect of the rebalancing will be to decrease the Trust's exposure to investment grade bonds (East Coast) and to increase it to more equity-oriented investments (WARATAH). On the most recent rebalancing in February 2012, the Trust's assets were allocated among the Underlying Portfolios as follows:

Underlying Portfolio  Allocated Percentage
   
Marret High Yield Hedge Portfolio 32.5%
Marret Investment Grade Hedge Portfolio 32.5%
East Coast Performance Portfolio 15%
WARATAH Income Portfolio 10%
RCM Special Situations Portfolio 10%
   
Total 100%

On the Rebalancing Date the Trust's assets will be allocated among the Underlying Portfolios as follows:

Underlying Portfolio  Allocated Percentage Change in Allocation
     
Marret High Yield Hedge Portfolio 32.5% No change
Marret Investment Grade Hedge Portfolio 32.5% No change
East Coast Performance Portfolio 5% Decrease by 10%
WARATAH Income Portfolio 30% Increase by 20%
RCM Special Situations Portfolio 0% Decrease by 10%
     
Total 100%  

"The rebalancing will result in an approximately equal asset allocation to High Yield Bonds, Investment Grade Bonds and Equities", said Barry Allan, Marret's CEO. "This is an ideal asset mix for the current market environment".

Marret has reported to the Independent Review Committee of the Fund and the Trust on the performance of the Underlying Portfolios and the proposed rebalancing set forth above. As described in the prospectus filed in connection with the Fund's initial public offering, the Independent Review Committee is required to determine if the rebalancing gives rise to a conflict of interest, and, if so, the Independent Review Committee will report its determination to Unitholders of the Trust and the Fund  in its annual report, which will be available on the Marret's website at www.marret.com, or at the Unitholder's request at no cost, by contacting Marret at 416-214-5800.

About Marret Asset Management Inc.

Marret Asset Management Inc. is an employee-owned firm based in Toronto and has approximately $6  billion of assets under management. Marret and its experienced team of investment professionals led by Barry Allan specialize exclusively in fixed income and, particularly, in high yield debt strategies. Barry Allan, the President and Chief Investment Officer, founded Marret in 2000, following a career at Altamira, Nesbitt Thomson and a Canadian chartered bank. Mr. Allan has over 30 years of experience in credit and fixed income markets.

This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions "seeks", "expects", "believes", "estimates", "will", "target" and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of Marret and the managers of the underlying portfolios regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements.

Marret believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Marret can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors" in the prospectus. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Marret undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws.

These forward-looking statements are made as of the date of this press release.

 

SOURCE Marret Multi-Strategy Income Fund

For further information:

For further information on the Fund, contact Peter Rizakos at 416.640.4256, prizakos@marret.com, or Marcus Spain at 416.306.3894, mspain@marret.com, or about Marret, go to www.marret.com.

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Marret Multi-Strategy Income Fund

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