TORONTO, June 18, 2013 /CNW/ - Return On Innovation Advisors Ltd. ("ROI Capital"), the manager of ROI Canadian High Income Mortgage Fund (TSX: RIH.UN)
(the "Fund"), announced today that a monthly cash distribution of $0.050 per unit
will be paid on July 15, 2013 to unitholders of record of the Fund on
June 28, 2013.
As previously announced, the March 2013 federal budget included proposed
changes to eliminate character conversion transactions using forward
agreements, affecting many funds in Canada that pursue tax advantaged
distribution strategies, including the Fund whose units are traded on
the Toronto Stock Exchange.
The Fund previously disclosed that while the current forward agreement
remains in place, the tax advantaged treatment of the monthly scheduled
cash distributions will continue until the Fund's forward agreement
matures on January 16, 2017. After the expiry of its current forward
agreement, all scheduled distributions by the Fund are expected to
consist principally of ordinary income.
"Doing what is best for our unitholders is our paramount consideration.
We have communicated openly, consistently and transparently about the
Fund's value and holdings and we will continue to do so," said ROI
Capital President and Founding Partner, Wilfred Vos. "The investments
in the Fund remain sound and the portfolio continues to perform as
expected and is well positioned to meet our distribution targets for
the rest of the year."
ROI Capital does not anticipate at this time that the Fund's current
forward agreement would be settled in whole prior to its scheduled
maturity on January 16, 2017. The capital gains in the Fund's forward
agreement as of May 31, 2013, net of any current capital tax loss
carry-forwards on a per unit basis, are approximately $1.70 per unit.
Whether the Fund will realize a capital gain of this size on the
settlement in whole of the Fund's forward agreement when such
settlement actually occurs, or as a result of other portfolio activity
from time to time, is uncertain and will depend on a number of factors,
including the performance of the Fund's investments.
ROI Capital is continuing to work with its lawyers and tax advisors to
assess the consequences for the Fund and its unitholders of the
proposed changes for forward agreements under the March 2013 federal
budget. ROI Capital will continue to examine the potential implications
of the proposed changes in the budget for the Fund and its unitholders
and possible changes for the Fund resulting from such implications and
will continue to act in the best interest of unitholders in addressing
the new circumstances.
Certain statements included in this news release constitute
forward-looking statements. The forward-looking statements are not
historical facts but reflect current expectations regarding future
results or events. 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 and, accordingly,
readers are cautioned not to place undue reliance on such statements
due to the inherent uncertainty therein. ROI Capital undertakes no
obligation to update publicly or otherwise revise any forward looking
statement whether as a result of new information, future events or
other such factors which affect this information, except as required by
law. Investment funds are not covered by the Canada Deposit Insurance
Corporation or by any other government deposit insurer. There is no
guarantee that an investment in the Fund will earn any positive return
in the short or long term nor is there any guarantee that the Fund's
investment objectives will be achieved or that the net asset value per
unit will appreciate or be preserved.
SOURCE: ROI Capital
For further information:
Wilfred Vos Bcs, FMA, CIM, CFP, FCSI, DMS, CBV, MBA, CFA
President & Founding Partner