EDMONTON, Feb. 9 /CNW/ - Carfinco Income Fund ("Carfinco" or the "Fund") announces the Board of Trustees intention to continue with distributions/dividends on an after tax basis in 2011.
As per the Fund's Deed of Trust, all taxable income for 2010 will be distributed to Unitholders. To the extent that the Fund generates taxable income in excess of the monthly cash distributions for any quarter, all or a portion of the excess taxable income will be distributed to Unitholders in the form of quarterly special distributions.
The Board has recently increased the monthly cash distribution to 2 cents per unit. Carfinco believes it is well positioned to maintain its current level of cash distributions to Unitholders through 2011 and beyond, despite becoming a taxable entity.
It is also important to note that once Carfinco becomes a taxable entity in 2011, cash distributions to Unitholders will receive a more favorable personal tax treatment than is currently the case. Distributions paid after January 1, 2011 will be treated as eligible Canadian dividends for tax purposes, resulting in a lower effective tax rate in the hands of a taxable investor.
Investors should be advised that income tax rates are subject to future legislative changes, and Unitholders are advised to consult their own tax advisors regarding tax-related matters.
About Carfinco Income Fund
Carfinco focuses on providing consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plan to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The units of the Fund trade on The Toronto Stock Exchange under the symbol "CFN.UN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Fund. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
SOURCE Carfinco Financial Group Inc.
For further information: For further information: Mr. Tracy A. Graf, CEO & Trustee of Carfinco Income Fund, Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail: firstname.lastname@example.org; OR The Howard Group Inc., Jeff Walker, Bob Beaty, Investor Relations, Telephone: 1-888-221-0915, Telephone: (403) 221-0915, E-mail: Info@howardgroupinc.com, Website: www.howardgroupinc.com