Advantaged Canadian High Yield Bond Fund Announces Special Meeting of Unitholders
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TORONTO, Jan. 25, 2013 /CNW/ - Scotia Managed Companies Administration Inc. (the "Manager"), the manager of the Advantaged Canadian High Yield Bond Fund (the "Fund"), a closed-end investment trust listed on the Toronto Stock Exchange (TSX: AHY.UN), announced today that CHY Management Ltd. (the "Trustee"), the trustee of the Fund, has called a special meeting (the "Meeting") of holders ("Unitholders") of units ("Units") of the Fund to consider the Manager's proposal for the continuation of the Fund as a closed-end fund. The Meeting will be held on March 8, 2013 and the record date for determining Unitholders entitled to receive notice of and vote at the Meeting is February 1, 2013.
When the Fund was formed in early 2011, it was contemplated that the Fund would delist the Units from the TSX and convert to an open-end mutual fund on or about March 31, 2013. The Manager has determined that it would be in the best interests of the Unitholders if the Fund were to continue as a closed-end fund following March 31, 2013. Under this proposal, the Fund would continue to be listed on the TSX and Unitholders would have an annual right to redeem their Units at net asset value in December of each year.
By remaining as a closed-end fund, the Fund will have lower annual expenses and the portfolio will be able continue its use of leverage which is expected to allow the Fund to maintain its current level of distributions on the Units. In addition, the Manager believes the closed-end structure will allow for more efficient management of the portfolio and reduce transaction costs.
The Fund's declaration of trust currently provides that Unitholders have a one-time right to redeem their Units at net asset value on March 15, 2013, provided Unitholders tender their Units for redemption no later than February 15, 2013 in accordance with the redemption procedures specified in the Fund's declaration of trust. The Manager is proposing that the declaration of trust be amended to provide an annual redemption right.
A management information circular setting forth further information about the Meeting, the recommendation of the board of directors of the Trustee and the matters Unitholders will be asked to approve is expected to be mailed to Unitholders and posted to SEDAR on or about February 15, 2013. The proposal requires approval by holders of two-thirds of the outstanding Units represented in person or by proxy at the Meeting.
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. Scotia Managed Companies Administration Inc. 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 assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholders investment in the Fund will be returned.
SOURCE: Advantaged Canadian High Yield Bond Fund
Investor Relations
Advantaged Canadian High Yield Bond Fund
Tel: (416) 945-5353
Web site: www.scotiamanagedcompanies.com
Email: [email protected]
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