CALGARY, June 3, 2015 /CNW/ - Middlefield Group, on behalf of Global Infrastructure Dividend Fund (the "TSX-Listed Fund"), is pleased to announce that, as described in its initial public offering final prospectus dated June 27, 2014, the TSX-Listed Fund intends to merge with Middlefield Global Infrastructure Fund (the "Mutual Fund"), on or about August 15, 2016.
The objective of the Mutual Fund is to maximize long-term total return by investing primarily in equity and fixed income securities of global issuers with a strategy that focuses on issuers offering exposure to the infrastructure sector. The Mutual Fund has a successful track record, having generated total annualized returns for its unitholders as at April 30, 2015 of 7.8% and 15.6% for the one year and since inception periods, respectively. Following the Merger, all Fund unitholders will have the additional benefit of daily purchases and redemptions of the Mutual Fund units at net asset value.
Global Infrastructure Dividend Fund units trade under the TSX symbol "GIF.UN".
The Merger will be effected on a "tax-deferred rollover" basis, at an exchange ratio calculated as the net asset value per TSX-Listed Fund unit divided by the net asset value per series A unit of the Mutual Fund, determined as at the close of trading on the Toronto Stock Exchange the business day immediately prior to the effective date of the Merger. The Merger will be effected without a vote of unitholders of the TSX-Listed Fund as described in the TSX-Listed Fund's prospectus. The management fee payable by unitholders of the TSX-Listed Fund may increase upon completion of the Merger to 2.0% per annum of the net asset value of the Mutual Fund's Series A units. Holders of TSX-Listed Fund units who do not wish to participate in the Merger to receive series A units of the Mutual Fund will have the opportunity to redeem their TSX-Listed Fund units on July 30, 2015 as described in the prospectus. Surrendered TSX-Listed Fund units will be redeemed in accordance with the declaration of trust of the TSX-Listed Fund and redemption proceeds will be payable on or before August 15, 2015.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the merger and expected completion thereof; the expected benefits of the merger; and the funds that are proposed to be merged. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, some of which are beyond the control of the funds.
SOURCE Global Infrastructure Dividend Fund
For further information: For further information, please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.