MONTREAL, Feb. 15 /CNW Telbec/ - O'Leary Funds Management LP, the
manager and trustee (the "Manager") of O'Leary Global Equity Income
Fund (TSX: OGE.un) (the "Fund") announces that, subject to regulatory
approval, the Fund will merge (the "Merger") on March 4, 2011 with
O'Leary Global Equity Yield Fund (the "Mutual Fund") which is an
open-ended mutual fund trust managed by the Manager.
Once all operational steps required to implement the Merger are
completed subscriptions for additional investments and redemptions can
be made via FundSERV (series A units of the Mutual Fund are also
available under the low-load purchase option).
The Manager has filed amendments to the simplified prospectus and annual
information form of the Mutual Fund in order to ensure that the Mutual
Fund's investment objectives and strategies are similar to those of the
Fund and to create a new series of units which will be exchanged for
trust units of the Fund.
Performance of the Fund provided +6.57% greater annual compound rate of
return than the MSCI World Index, since inception in June 2008 through
January 31, 2010, as the Fund generated +4.05% while the MSCI World
Index which returned -2.52% over the same period. In addition to
providing a greater return, the Fund provided relative stability, with
a standard deviation since inception of 16.8%, proving to be 59% less
volatile than the MSCI World Index. The Fund's actively managed
portfolio has provided stable monthly income and long-term capital
appreciation and is currency-hedged to the Canadian dollar. The Fund
has invested primarily in common and preferred shares of global
companies with a market capitalization of more than $1.0 billion.
Subject to regulatory approval, the Merger will be implemented on a tax
deferred basis. Unitholders of the Fund will receive series X units of
the Mutual Fund in exchange for their units of the Fund. The exchange
ratio will be determined by the Manager with reference to the NAV per
unit of the Fund and the NAV per unit of the Mutual Fund. Investors in
the Fund holding series X units will not experience any change in the
management fee as a result of the Merger. After the Merger, the new
series of the Mutual Fund will distribute initially $0.50 per annum
representing an annual distribution of 5% based on the anticipated $10
per unit issue price, which corresponds to a regular monthly
distribution of $0.0417 per series X unit.
Units of the Fund will be halted at the opening and delisted at the
close of the Toronto Stock Exchange on March 3, 2011.
Important information: Unitholder accounts which are deemed to be
non-resident of a Canadian province will not be allowed to hold units
of the Mutual Fund following the Merger and accordingly, will be
redeemed shortly after the Merger is completed.
This information does not reflect the expected performance of the
fund(s) and is provided only to illustrate the experience and historic
investment results obtained by O'Leary Funds Management LP. This
information is not, and should not be construed as, indicative of the
future performance of the securities or amounts which may be
distributed by the fund(s). This information is provided solely for
illustrative purposes, and should not be construed as a forecast or
projection. Past performance does not guarantee future investment
SOURCE O'LEARY FUNDS MANAGEMENT LP
For further information:
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