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TORONTO, March 30 /CNW/ - Faircourt Asset Management Inc., the Manager of
Faircourt Income & Growth Split Trust, formerly Income & Growth Split Trust
(TSX: FIG.UN; FIG.PR.A) (the "Trust"), is pleased to announce the annual
audited financial results for the Trust for the year ended December 31, 2006.
The Trust's net assets amounted to $48.66 million as at December 31,
2006. Net investment income for the year ended December 31, 2006 amounted to
$3.21 million, or $0.74 per Trust Unit. During the year, the Trust realized
$9.68 million of capital gains, or $2.23 per Trust Unit, while unrealized
gains decreased by $19.98 million, or $4.60 per Trust Unit. As a result, the
NAV began the year at $18.80 and ended the year at a level of $15.35 on
December 31, 2006. Closed end trusts may trade above, at or below their NAV
per unit. At December 31, 2006, the Trust Units were trading at a discount of
9.9% to the underlying NAV.
Subsequent to year-end, Faircourt Income Split Trust, Faircourt Split
Five Trust and Faircourt Split Seven Trust were merged into Income & Growth
Split Trust (and renamed Faircourt Income & Growth Split Trust). The merged
entity has total assets of approximately $330.0 million.
At the core of the Trust's investment strategy is to select securities
that, due to the nature of the businesses selected exhibit a strong
combination of visible cash flows, attractive yields, and superior growth
prospects relative to other business and industrial funds. As at December 31,
2006, the Trust maintained a diversified portfolio of 51 positions. Business
and industrial funds comprised 26.2% of the market value of the Trust's
investment portfolio; commodity-based and energy services trusts comprised
34.3%; pipelines and power generation funds comprised 12.9%; REITs comprised
8.8%; and North American dividend paying equities comprised 17.8%.
As at December 31, 2006, the Trust had 5,545,000 Preferred Securities
outstanding representing a total liability of $55.45 million, unchanged from
December 31, 2005. The Preferred Securities of the Trust continued to provide
an attractive annualized yield of 6.25% on the original subscription price,
and a stable alternative to other fixed income securities. At December 31,
2006, the Preferred Securities were trading at $9.85 per Preferred Security, a
discount to issue price of 1.50%.
The Investment Advisor to the Trust is Acuity Investment Management Inc
("Acuity"). Acuity has assets under management of $8.7 billion, with over
$2.6 billion in income trust investments.
For further information:
For further information: on Faircourt Income & Growth Split Trust,
please visit www.faircourtassetmgt.com or contact: Charles Taerk, President,
or Douglas Waterson, CFO, at (416) 364-8989 or 1-800-831-0304