TORONTO, Oct. 16 /CNW/ - Charterhouse Preferred Share Index Corporation
(the "Company") is pleased to announce a return of capital distribution of
$0.2197 per PSI Preferred Share ("Share"). The distribution will be paid in
cash on October 31, 2008 to holders of record at the close of business on
October 29, 2008. This distribution covers the Company's fiscal first quarter
ending October 31, 2008 and equates to an annualized current yield of
approximately 5.11 % based on the closing price of the Shares of $17.20 on
October 15, 2008.
Distributions paid by the Company vary from quarter to quarter as a
result of changes in the make up and weighting of the securities underlying
the Index Portfolio, the actual income received from these securities and
borrowing costs. The current distribution is $0.0015 per Share (or 0.7%)
higher than the previous quarter.
The Company has previously announced that it will hold a special meeting
of its preferred shareholders on October 20, 2008. At the meeting,
shareholders will be asked to consider:
(i) merging the Company into a newly formed open-ended mutual fund
trust (the "Trust"). The proposal includes an amendment to the
articles of incorporation of the Company to permit suspension of
the retraction of preferred shares or payment of retraction
proceeds if the proposed merger is approved and to allow instead
the Company to redeem all outstanding preferred shares in exchange
for units of the Trust as part of the merger of the Company into
the Trust; and
(ii) amending the articles of incorporation of the Company to permit it
to suspend the annual retraction of preferred shares or payment of
retraction proceeds if, prior to the scheduled annual redemption
date, the board of directors elects to redeem all outstanding
preferred shares of the Company in connection with the orderly
liquidation of the Company.
The manager of the Company, JovFunds Management Inc. (the "Manager"), has
recommended that the preferred shareholders vote in favor of the proposals.
The merger will offer preferred shareholders exposure to an actively
managed portfolio of preferred securities, the benefit of a daily redemption
right at net asset value ("NAV"), and therefore daily liquidity, as well as
the ability to increase the assets of the fund by issuing additional
securities at NAV on a continuous basis. Merging the Company into a newly
formed open-ended mutual fund trust is viewed as by the Manager as a
preferential alternative to an orderly liquidation of assets of the Company in
the event of a wind up.
If the merger is approved, the Manager believes that the concurrent
suspension of the annual retraction of Preferred Shares is consistent with the
merger as preferred shareholders will benefit from a daily redemption right at
NAV upon completion of the merger.
In the event the merger proposal is not approved for any reason, it is
likely the Manager will recommend to the board of directors that the Company
be wound up. The approval of the second proposal and subsequent suspension of
the annual retraction, in the event the Company is being wound up, would
ensure that the liquidation of assets is done in an orderly manner.
For further information:
For further information: Kevin S. Beatson, Chief Executive Officer,
email@example.com, Web site: www.jovfunds.com