Joint Press Release - Merger of Funds into Acuity Growth & Income Trust



    TORONTO, Nov. 16 /CNW/ - Acuity Funds Ltd. ("Acuity") is pleased to
announce further specifics of the proposed merger (the "Merger"), announced
October 31, 2007, of Acuity All Cap & Income Trust ("All Cap") (TSX: AAI.UN),
Acuity Diversified Total Return Trust ("Diversified") (TSX: ADF.UN), Acuity
Multi-Cap Total Return Trust ("Multi-Cap") (TSX: ART.UN) (collectively, the
"Terminating Funds") with Acuity Growth & Income Trust (the "Continuing Fund")
(TSX: AIG.UN) (collectively, the "Funds"). All four Funds are managed by
Acuity Funds Ltd. The purpose of the Merger is to provide unitholders of all
Funds with the opportunity to hold units of the Continuing Fund that offers a
larger market capitalization, increased trading liquidity and lower operating
costs on a per unit basis.
    Completion of the Merger is expected to take place on or about
December 28, 2007 (the "Effective Date") and is subject to unitholder
approval, and all regulatory requirements and customary closing conditions
being satisfied. The Merger will be effected at an exchange ratio calculated
as the net asset value per unit of each Fund divided by the net asset value
per unit of the Continuing Fund, each determined as at the close of trading on
the Toronto Stock Exchange on the Effective Date.
    Following the successful completion of the Merger, the Continuing Fund
intends to increase its monthly indicative distribution amount to $0.08 per
unit. The first monthly distribution of $0.08 per unit will be payable on
January 15, 2008 to unitholders of record of the Continuing Fund on
December 31, 2007. The new indicative distribution amount is equal to $0.96
per unit per annum, and will be the Continuing Fund's indicative distribution
amount for the following 12 months upon the successful completion of the
Merger.
    Unitholders of the Terminating Funds who do not wish to participate in
the Merger and become unitholders of the Continuing Fund will have the
opportunity to redeem their units of the respective Terminating Funds before
the Merger occurs. In order to provide unitholders of all of the Terminating
Funds with an equal opportunity to choose not to participate in the Merger, a
redemption date for each of the Terminating Funds has been set at December 20,
2007 with a redemption payment date of December 27, 2007. To allow unitholders
of the Terminating Funds to participate in the redemption, the Manager of the
Terminating Funds has set the redemption notice period from December 1, 2007
to 5:00 p.m. on December 12, 2007. Unitholders should use the same notice
procedure as set out for annual redemptions in the respective Terminating
Fund's declaration of trust. Surrendered units will be redeemed at a price
calculated with reference to the net asset value per unit in accordance with
the respective Terminating Fund's declaration of trust.
    The planned merger is subject to any required regulatory or exchange
approval.
    The Continuing Fund trades under the symbol AIG.UN on the Toronto Stock
Exchange.

    Certain statements in this press release may be viewed as forward-looking
statements. Any statements that express or involve discussions with respect to
predictions, expectations, belief, plans, intentions, projections, objectives,
assumptions or future events or performance (often, but not always, using
words or phrases such as "expects", "is expected", "anticipates", "plans",
"estimates" or "intends" (or negative or grammatical variations thereof), or
stating that certain actions, events or results "may, "could", "would",
"might" or "will" be taken occur or be achieved) are not statements of
historical fact and may be forward-looking statements Statements which may
constitute forward-looking statements relate to: the proposed timing of the
merger and expected completion thereof; the expected benefits of the merger
and future distributions; and the Funds that are proposed to be merged.
Forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in
the forward-looking statements including as a result of changes in the general
economic and political environment, changes in applicable legislation, and the
performance of each Fund. There are no assurances the Funds can fulfill such
forward-looking statements and the Funds do not undertake any obligations to
update such statements. Such forward-looking statements are only predictions:
actual events or results may differ materially as a result of risks facing one
or more of the Funds, some of which are beyond the control of the Funds.

    %SEDAR: 00020507E




For further information:

For further information: please contact George Henry, Chief Financial
Officer, at (416) 366-9933

Organization Profile

ACUITY FUNDS LTD.

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ACUITY ALL CAP & INCOME TRUST

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