Northern Rivers' first mutual fund celebrates one year anniversary by
increasing its tax efficient payout.
TORONTO, Oct. 30 /CNW/ - Investors in the Northern Rivers Monthly Income
and Capital Appreciation Fund (the Monthly Income Fund) received some good
news in the last few days: the fund will be increasing its monthly
distribution of tax-efficient income by 4 per cent. The increase in monthly
distribution will become effective on November 1st, 2007 and will equate to .5
of one cent per unit per month.
"A four per cent increase may not seem like a major achievement, but we
think it's very significant and we're very proud of it," said Robert Blakely,
President of Northern Rivers Capital Management Inc. "The Monthly Income Fund
was very innovative when we launched it a year ago, and was not immediately
understood by investors or advisors. Its sophisticated structure has delivered
exactly what it was designed to do - delivering $1.50 in distributions in its
first twelve months - all classified 100% as return of capital. In addition,
the fund's diversified structure has protected investors' principal, in spite
of the rising Canadian dollar and the sub-prime mortgage debacle."
The Monthly Income Fund was launched in September, 2006. It was one of
the first mutual funds in Canada to distribute income primarily as return of
capital and capital gains for tax purposes, while promising capital
appreciation in the long term. The fund is managed to generate sufficient
income to make consistent and increasing payouts over time.
"The fund has not only been able to generate the income required, but
now, will increase the payout," said Rob Cassels, President of Cassels
Investment Management Inc., which manages the portfolio for Northern Rivers.
"We haven't enjoyed the capital appreciation that we would have liked in
the first year, due to considerable volatility in financial markets. Over the
longer term, however, the fund is expected to grow enough to protect
investors' principal against inflation while producing reliable tax-efficient
income each and every month."
Since its launch, the Monthly Income Fund appears to have spawned several
imitators. A proliferation of fund structures has recently come to market with
the goal of offering the same tax benefits. Not all of these are actually
designed to generate enough income to fund the distributions, however, and
none can boast the combined talents of Cassels Investment Management Inc. and
Brookfield Investment Funds Management Inc.
The fund's returns are linked to investments in a diversified pool of
global, large capitalization, dividend-yielding equity securities, income
trusts and fixed income securities. Brookfield Investment Funds Management
Inc. acts as sub-advisor for the fixed income component of the portfolio -
which in itself is a unique selling proposition for the fund, as Brookfield
does not currently work with any other external mutual fund providers.
About Northern Rivers Capital Management Inc.
Northern Rivers Capital Management Inc. was established in 2001 to
provide financial products and services for high net worth investors. Its
current family of funds includes three mutual funds and four pooled funds for
For further information:
For further information: Robyn Graham, Vice President, Sales &
Marketing, Northern Rivers Capital Management Inc., Phone: (416) 597-3890,
Email: firstname.lastname@example.org, www.northernriversfunds.com