TORONTO, May 7, 2014 /CNW/ - Marret Asset Management Inc. today
announced that Marret High Yield Strategies Fund (TSX: MHY.UN) will
terminate as scheduled on May 30, 2014 (the "Termination Date") and the
net assets of the fund will be distributed to unitholders of record on
the Termination Date.
The distribution will take place in stages. The fund currently holds two
private positions (the "Private Portfolio"), which accounted for 13.5%
of the fund as at April 30, 2014. The fund will make a distribution of
the liquid portion of the portfolio (the "Liquid Portfolio") on June
16, 2014 and will distribute the net proceeds from the Private
Portfolio (net of any expenses associated with its disposal) when
proceeds are received by the fund. As of April 30, 2014, $7.57 or 86.5%
of the fund's net asset value per unit of $8.75 was attributable to the
value of the Liquid Portfolio, and $1.18 of the fund's net asset value
per unit was attributable to the value of the Private Portfolio.
The fund will continue until such time as the Private Portfolio is sold.
No ongoing management or other fees will be charged by Marret for
overseeing the liquidation of the Private Portfolio and the winding up
of the fund. It is Marret's current intention to maintain the listing
of the units of the fund on the Toronto Stock Exchange after the
Termination Date. Marret also intends to publish a NAV for the units on
a weekly basis on its website at www.marret.com.
The Private Portfolio consists of bonds issued by:
Cline Mining Inc., a Canadian resource development company with mineral interests that
include assets in coal, gold, iron ore, oil and gas and uranium.
Cline's principal asset is the New Elk Coal Mine, based in Trinidad,
Colorado, which is a fully permitted metallurgical coal project with a
measured and indicated coal resource of almost 620 million tons of
Data & Audio-Visual Enterprises Holdings Inc., which owns and operates a
mobile communications network under the Mobilicity name. It owns
valuable wireless spectrum licences that are necessary for wireless
operators to meet the increasing demand for wireless data services.
Canadian federal income tax considerations
The following is a general discussion of the relevant tax considerations
in respect of the units and the termination of the fund. Unitholders
should consult their own tax advisors with respect to their particular
A unitholder who is resident in Canada will generally be required to
include in computing income for a taxation year that part of the net
income of the fund, including net realized taxable capital gains, that
is paid or becomes payable to the unitholder by the fund in the year.
To the extent that amounts payable to a unitholder are designated by
the fund as the taxable portion of net realized capital gains, those
amounts will retain their character and be treated as such in the hands
of the unitholder.
Distributions to a unitholder in excess of the unitholder's share of the
fund's net income and net realized capital gains will generally not
result in an income inclusion, but will reduce the adjusted cost base
of the unitholder's units. To the extent that the adjusted cost base of
a unit held as capital property would otherwise be less than zero, the
unitholder will be deemed to have realized a capital gain equal to such
negative amount and the adjusted cost base to the unitholder will be
increased by the amount of such deemed capital gain.
The fund anticipates that the majority of the distribution(s) received
by unitholders in connection with the termination of the fund will be
received as return of capital. The exact treatment will depend on the
unitholder's own circumstances.
About Marret Asset Management Inc.
Marret Asset Management Inc. specializes in fixed income and
particularly in high-yield debt strategies. The experienced team of
investment professionals is led by Barry Allan, President and Chief
Investment Officer. He founded Marret in 2000, following a career at
Altamira, Nesbitt Thomson and a Canadian chartered bank, and has over
30 years of experience in credit and fixed-income markets. Marret is
65% owned by CI Financial Corp.
This press release contains forward-looking statements and information
within the meaning of applicable securities legislation.
Forward-looking statements can be identified by the expressions
"seeks", "expects", "believes", "estimates", "will", "target" and
similar expressions. The forward-looking statements are not historical
facts but reflect the current expectations of Marret and the managers
of the underlying portfolios regarding future results or events and are
based on information currently available to them. Certain material
factors and assumptions were applied in providing these forward-looking
statements. All forward-looking statements in this press release are
qualified by these cautionary statements. Marret believes that the
expectations reflected in forward-looking statements are based upon
reasonable assumptions; however, Marret can give no assurance that the
actual results or developments will be realized. 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, including the matters discussed under "Risks Factors" in
the prospectus. Readers, therefore, should not place undue reliance on
any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is made.
Marret undertakes no obligation to publicly update any such statement
or to reflect new information or the occurrence of future events or
circumstances except as required by securities laws. These
forward-looking statements are made as of the date of this press
SOURCE: CI Investments Inc.
For further information:
Marret Investor Services
416-214-5800 or firstname.lastname@example.org