TORONTO, June 12, 2012 /CNW/ - Marret Asset Management Inc. ("Marret")
announces it is reducing the monthly distribution for the Marret High
Yield Strategies Fund (TSX Symbol: MHY.UN) (the "Fund") for the
upcoming quarter that will end on September 30, 2012 to $0.05 per unit
from the previous monthly distribution rate of $0.067 per unit. The
revised monthly distribution rate will take effect with the monthly
distribution payable to unitholders of record as of July 31, 2012. The
revised monthly distribution rate represents a current yield of 6.19%
per annum based on the closing price of the units on the TSX on June
The revised distribution rate will apply for the monthly payment dates
in the quarter ended September 30, 2012. In accordance with past
practice, the monthly distribution rates applicable in subsequent
quarters will be announced by Marret prior to the beginning of the
Marret has decided to reduce the distribution rate based on its outlook
for the high yield market and for markets generally. Marret has lowered
its return expectations for the near term as a result of the continued
risks associated with high levels of sovereign debt and the anticipated
effects of deleveraging on world economies. In addition, the current
high yield environment is not conducive to meeting a higher
distribution rate. As of June 11 2012, the credit spread on the Merrill
Lynch High Yield Master II Index was 690 basis points, translating into
a yield of 7.77%. By comparison, when the Fund was launched in June
2009, the credit spread was 1,136 basis points and yield was 13.81%.
"We think this is the right decision for the Fund", said Barry Allan,
Marret's President and CEO. "We have been in a capital preservation
mode, looking for strategic entry points to add exposure. Lowering the
distribution rate allows us to protect the net asset value in this
period of lower returns."
About Marret Asset Management Inc.
Marret Asset Management Inc. is an employee-owned firm based in Toronto
and has over $6 billion of assets under management. Marret and its
experienced team of investment professionals led by Barry Allan
specialize exclusively in fixed income and, particularly, in high yield
debt strategies. Barry Allan, the President and Chief Investment
Officer, founded Marret in 2000, following a career at Altamira,
Nesbitt Thomson and a Canadian chartered bank. Mr. Allan has over 30
years of experience in credit and fixed income markets.
This press release contains forward-looking statements and information
within the meaning of applicable securities legislation, including but
not limited to expectations regarding future distributions by the Fund.
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 Marret Asset Management Inc.'s current expectations
regarding future results or events and are based on information
currently available to management. 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.
Management believes that the expectations reflected in forward-looking
statements are based upon reasonable assumptions; however, management
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 Fund's current Annual
Information Form. 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 Asset Management Inc. and the Fund undertake 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
These forward-looking statements are made as of the date of this press
SOURCE Marret High Yield Strategies Fund
For further information:
For further information on the Fund, contact Marret Investor Relations at 416-214-5800 or firstname.lastname@example.org, or about Marret, go to www.marret.com