O'Leary Funds Management LP announces the filing of an application for exemptive relief of having to hold a unitholder meeting to effect a change in the fundamental investments objectives of O'Leary Global Bond Yield Advantaged Fund

MONTREAL, May 17, 2013 /CNW Telbec/ - O'Leary Funds Management LP, the manager (the "Manager") of O'Leary Global Bond Yield Advantaged Fund (the "Fund") announces that it will seek exemptive relief (the "Requested Relief") from the regulatory authorities of having to hold a unitholder meeting to effect a change in the fundamental investments objectives of the Fund (the "Change of Investment Objectives").

On March 21, 2013, the federal budget of the Government of Canada proposed amendments to the Income Tax Act (the "Tax Act") which are expected to eliminate the tax advantages of character conversion transactions employed by tax forward structures at the end of the term of the relevant forward contract.  The Fund's forward contract is set to expire on June 23, 2015 (the "Forward Contract").

The Government of Canada has given some guidance with respect to the interpretation of the budget proposals and the Manager's current understanding is that the Fund may continue to use the Forward Contract until the expiration of its term but that no new subscriptions in the Fund may be used to extend the size of the Forward Contract. The Manager is of the view that continuing to operate the Fund by using the Forward Contract to the end of its term is of significant value to the current investors. However, as new subscriptions into the Fund cannot be invested in the Forward Contract, the Fund must use an alternate strategy to invest "directly in publicly traded debt securities of global issuers with market capitalization of at least $1 billion" in order to most closely follow the original investment decision of investors.

The Manager proposes to amend the fundamental investment objectives of the Fund such that the Fund may continue to utilize the Forward Contract and also utilize the alternate investment strategy to the extent necessary.

The Manager proposes to further amend the fundamental investment objectives of the Fund, on or about June 23, 2015, to remove any reference in the investment objectives of the Fund to the Forward Contract and keep the alternate investment strategy as the fundamental investment objectives of the Fund.

The effect of the Change of Investment Objectives is that unitholders of the Fund would continue to have the tax advantage of the Forward Contract as long as possible.  Unitholders would also benefit from the alternate strategy, which would provide investors with continued exposure to a portfolio of publicly traded debt securities of global issuers, despite the proposed changes to the Tax Act.  The Change of Investment Objectives would also position the Fund to continue beyond the term of the Forward Contract.

Holding a unitholder Meeting with respect to the Change of Investment Objectives would be an unnecessary expense for the Fund, given that the Change of Investment Objectives is simply a change made in response to the recently proposed changes to the Tax Act and would allow the Fund to continue operating in the best interests of all unitholders of the Fund.

If the Requested Relief is granted, the Change of Investment Objectives will take effect on or about June 28, 2013.

Approval with respect to the Change of Investment Objectives has been obtained from the Board of Directors of the Manager, subject to receipt of the Requested Relief, and is being submitted to the Investment Review Committee of the Fund for approval as well.

O'Leary Funds Management LP is a Canadian investment fund manager of mutual funds and closed-end funds striving to provide Canadian investors with reliable and strategic income solutions. Based on our value-yield investment philosophy, Canadian and global investment opportunities are identified through a disciplined investment process. Our core principles, Income, Capital Appreciation and Capital Preservation, are driven by each portfolio's investment objectives. Our portfolios are diversified by sector, region and asset class. For more details about O'Leary Funds, visit www.olearyfunds.com.

SOURCE: O'Leary Funds Management LP

For further information:

for media inquiries or additional information, please contact Louise Anne Poirier, Investor Relations at info@olearyfunds.com or at 877-849-2004 or 514-849-1056

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O'Leary Funds Management LP

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O'Leary Global Bond Yield Advantaged Fund

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