East Coast Investment Grade Income Fund Announces Unitholder Approval of Fund Extension and Announces Distributions For 2nd Quarter

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TORONTO, April 13, 2017 /CNW/ - Arrow Capital Management ("Arrow"), as manager of East Coast Investment Grade Fund (the "Fund") (TSX: ECF.UN), announced the results of the Fund's special meeting held today and the Fund's second quarter distributions for 2017.

Unitholder Approval of Fund Extension

Arrow is pleased to announce that at a special meeting of holders ("Unitholders") of the Fund's units ("Units") held today, Unitholders overwhelmingly approved an extraordinary resolution to implement certain amendments to the Fund's declaration of trust to allow Unitholders to maintain their investment in the Fund beyond the scheduled termination date of May 18, 2017, to approve changes to the Fund's investment structure in response to amendments to tax laws and to approve changes to the Fund's fee structure designed to improve the economics for Unitholders (collectively, the "Extension"). The approval of the Extension will, among other things, enable the Fund to effect certain amendments to its declaration of trust to:

(i)

extend the scheduled termination date of the Fund to May 31, 2022;



(ii)

amend the investment objectives, investment strategies and investment restrictions of the Fund to reflect generally the current investment objectives, investment strategies and investment restrictions of ECIGIF Trust, being the underlying investment fund that the Fund has obtained exposure to through a forward purchase and sale agreement (the "Forward Agreement") with The Bank of Nova Scotia, as counterparty, to allow the Fund to hold a diversified portfolio comprised primarily of investment grade debt securities (both long and short positions) of Canadian corporate and government issuers that are rated BBB- or higher by Standard & Poor's, or a similar rating from a qualified rating agency directly following the termination of the Forward Agreement;



(iii)

amend the management agreement between the Fund and Arrow in order to: (1) change the structure of the management fees payable by the Fund such that the Fund is subject to a single management fee of 1.25% per annum on the net asset value of the Fund; (2) remove the 0.40% service fee payable to registered advisors; and (3) change the structure of the Fund's performance fee;



(iv)

provide Unitholders who do not wish to continue their investment with a special redemption right to enable such Unitholders to redeem their Units on May 18, 2017 on effectively the same terms as annual redemptions under the Fund's declaration of trust;



(v)

amend the annual redemption date to the last business day of May of each year beginning in May 31, 2018;



(vi)

remove the requirement to call a meeting to seek approval of Unitholders if the Manager appoints a new auditor;



(vii)

remove the requirement to call a meeting to seek Unitholder approval to enter into a permitted merger; and



(viii)

make certain other amendments consequential to the foregoing.

Unitholders who do not wish to continue their investment in the Fund have the option of redeeming their Units on May 18, 2017 by giving written notice no later than 5:00 p.m. (Toronto time) on April 28, 2017. Unitholders wishing to exercise such right should contact their broker or intermediary in order to arrange for submission of such notice.

Arrow expects to implement the amendments to the Fund's declaration of trust and to terminate the Forward Agreement on or around April 17, 2017.

Distributions for 2nd Quarter

Arrow also announced that the Fund will pay a distribution in the amount of $0.05 per unit on or before May 15, 2017 to unitholders of record on April 28, 2017.

A distribution will also be paid in the amount $0.05 per unit on or before each of June 15, 2017 and July 14, 2017 to unitholders of record on May 31, 2017 and June 30, 2017 respectively.

About Arrow Capital Management Inc.

Arrow is an employee-owned company, founded in 1999. Arrow's expertise in active portfolio management and manager selection is evident in its strong, diverse platform, which provides clients with access to a global selection of actively managed investment funds. Arrow is committed to continuously providing investors with access to a wide range of investment solutions. With over 15 years of service, Arrow is well respected as a Canadian alternative investment company.

About East Coast Fund Management Inc.

East Coast Fund Management Inc. ("East Coast") was founded in 2009 with the aim of providing high net worth individuals the ability to maximize risk-adjusted returns of investment grade credit while removing exposure to interest rates. The portfolio management team at East Coast has over 100 years of financial services experience. East Coast has been a sub-advisor to Arrow since 2010.

Forward-Looking Statements

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "will", "estimates" and similar expressions to the extent that they relate to the Fund. The forward-looking statements are not historical facts but reflect Arrow's current expectations regarding future results or events. 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. Although Arrow believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Arrow does not undertake any obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

SOURCE Arrow Capital Management Inc.

For further information: Arrow Capital Management Inc., please visit www.arrow-capital.com or contact us at (416) 323-0477 / (877) 327-6048 or contact your financial advisor.

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