TORONTO, Feb. 22 /CNW/ - SCITI Trust (the "Trust") announced today that
it is calling a meeting of holders of SCITI Trust units ("Unitholders") to
consider a proposal to reorganize the Trust. The reorganization will involve
(i) the extension of the originally scheduled redemption date to April 29,
2013, (ii) the creation of a special retraction right on April 29, 2008 and
(iii) an amendment to the investment mandate of the Fund.
The reorganization, if approved and completed, will change the Trust's
investment mandate. Under the proposed new investment mandate, the Fund's
portfolio will be based on a new index, created by Scotia Capital, which will
track the highest yielding equity securities listed on the Toronto Stock
Exchange without regard to corporate structure. In order to be eligible for
the new index, potential constituents will have to meet certain inclusion
criteria including having a minimum market capitalization of $300 million. The
Trust's portfolio will comprise the top 50 highest yielding issuers included
in the new index on an equal weight basis. Currently, the Trust's portfolio
consists of the 100 largest income funds (weighted on a float capitalization
basis) included in the Scotia Capital Income Trust Index (the "SCITI"). The
revised mandate has been designed to provide Unitholders with a well
diversified, high yielding portfolio that will be responsive to changes in the
income trust market resulting from the tax fairness plan introduced on October
31, 2006. It is expected that the revised mandate will provide Unitholders
with a higher yielding portfolio with greater single name diversification and
lower volatility than the current portfolio.
A special meeting of Unitholders has been called and will be held on
March 28, 2008 to consider and vote on the reorganization. Details of the
proposed reorganization will be outlined in an information circular to be
prepared and delivered to Unitholders in connection with the special meeting
and will be available on www.sedar.com. The reorganization will be subject to
receipt of all necessary regulatory approvals.
About SCITI Trust
The Trust is an investment trust which provides investors with a high
current yield and low cost diversification through a portfolio of the 100
largest income funds (approximately weighted on a float capitalization basis)
included in the SCITI.
Unitholders are entitled to receive monthly distributions as declared by
the Trustee of the Trust. The Trustee generally intends to declare and pay
equal monthly distributions to the extent of forecasted distributions to be
received for a calendar quarter from the underlying income funds in the
portfolio, less the estimated operating expenses for the period. Any
difference from the forecast will be adjusted in the following quarter.
The units of the Trust are listed for trading on The Toronto Stock
Exchange under the symbol SIN.UN.
For further information:
For further information: Investor Relations, SCITI Limited, Trustee of
SCITI Trust, (416) 945-4394, E-mail: email@example.com, Web site:
www.scotiamanagedcompanies.com, 40 King Street West, 26th Floor, Toronto,
Ontario, M5W 2X6, Tel: (416) 945-4394, Fax: (416) 863-7425