Carfinco Income Fund
EDMONTON, Sept. 11 /CNW/ - Carfinco Income Fund ("Carfinco" or the
"Fund") announces the Fund's Board of Trustees has unanimously approved to not
distribute any cash or units for the three-month period ending September 30,
2008. As previously announced on March 31, 2008, the Fund changed its
distribution policy from a monthly cash distribution to a quarterly "in-kind"
unit distribution, with the intention of distributing all, if any, of the
Fund's taxable income.
By implementing changes to both loan origination policies and collection
procedures, management has been actively addressing the challenges incurred
with higher fuel prices and lower auction values for used vehicles. In the
third quarter, management has been focused on slowing the growth in the
finance receivables during these uncertain economic times, thereby reducing
the requirement for increases to the allowance for credit losses. During the
first six months of 2008, the Fund added $4.4 million to the allowance for
credit losses, which is a non-cash expense on the income statement.
About Carfinco Income Fund
A growth-oriented income trust, Carfinco focuses on providing consumer
car loans to borrowers unable to obtain financing through traditional lending
sources. A network of select independent and franchise dealerships offer
Carfinco's payment plan to their customers who must, along with the vehicle,
meet Carfinco's underwriting guidelines.
The units of the Fund trade on The Toronto Stock Exchange under the
Caution Regarding Forward-Looking Statements - This news release contains
certain forward-looking statements, including statements regarding the
business and anticipated financial performance of the Fund. These statements
are subject to a number of risks and uncertainties. Actual results may differ
materially from results contemplated by the forward-looking statements. When
relying on forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties and
should not place undue reliance on such forward-looking statements.
For further information:
For further information: Mr. Tracy A. Graf, CEO & Trustee of Carfinco
Income Fund, Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail: