TORONTO, Dec. 9 /CNW/ - Goodman & Company, Investment Counsel Ltd. ("Goodman & Company" or the "Manager"), manager of Dynamic Funds(TM), announces that it will seek unitholder approval for the following mergers:
- diversiGlobal(TM) Dividend Value Fund with Dynamic Global Dividend
- diversiTrust(TM) Energy Income Fund with Dynamic Focus+ Energy Income
Trust Fund; and
- each of diversiTrust(TM) Income Fund, diversiTrust(TM) Stable Income
Fund, diversiTrust(TM) Income+ Fund and diversiYield(TM) Income Fund
with Dynamic Strategic Yield Fund.
diversiGlobal Dividend Value Fund, diversiTrust Energy Income Fund, diversiTrust Income Fund, diversiTrust Stable Income Fund, diversiTrust Income+ Fund and diversiYield Income Fund are referred to as the "Terminating Funds", and Dynamic Global Dividend Value Fund, Dynamic Focus+ Energy Income Trust Fund and Dynamic Strategic Yield Fund are referred to as the "Continuing Funds". Each of the Terminating Funds is a closed-end investment trust listed on the Toronto Stock Exchange, and each of the Continuing Funds is an open-end mutual fund.
For each merger that is approved, the applicable Terminating Fund will transfer all of its assets to the applicable Continuing Fund in exchange for Series A units of the Continuing Fund. In addition, the Continuing Fund will absorb all the liabilities of the Terminating Fund. The Terminating Fund will then wind up and each unitholder of the Terminating Fund will receive Series A units of the applicable Continuing Fund having the same aggregate net asset value as the units held by the unitholder in the Terminating Fund.
Each merger will require approval by two-thirds of the votes cast by unitholders of each of the applicable Terminating Funds at a special meeting of such unitholders, expected to be held jointly on or about March 2, 2010 (the "Special Meetings"). The record date for the purpose of determining which unitholders are entitled to receive notice and vote at the Special Meetings will be the close of business on or about January 15, 2010. The information circular containing a complete description of the matters to be considered at the Special Meetings will be sent to unitholders shortly thereafter.
The proposed mergers have been approved by the Independent Review Committee of each Terminating Fund and Continuing Fund, but remain subject to regulatory approval.
Rationale for the Mergers
The Manager believes that the mergers will be beneficial to the unitholders of the Terminating Funds for the following reasons:
1. Each Continuing Fund has a larger portfolio and broader investment
mandate than the applicable Terminating Fund that is merging with it,
and so should offer improved portfolio diversification to unitholders
of the Terminating Funds;
2. Unitholders of each Terminating Fund should benefit from increased
economies of scale and lower proportionate fund operating expenses as
unitholders of the applicable Continuing Fund;
3. Series A units of each of the Continuing Funds will have greater
liquidity than units of the applicable Terminating Fund that is
merging with it, and the mergers will eliminate the discount to net
asset value for each Terminating Fund; and
4. Changes to the tax treatment of income trusts have resulted in a
reduction in the number of income trusts in which the Terminating
Funds can invest due to merger and acquisition activity and
conversions back into corporations, and it is anticipated that this
trend will continue. The Manager believes that the interests of the
unitholders of each Terminating Fund will be better served by being
invested in a larger Continuing Fund with a more flexible mandate.
About Goodman & Company
Goodman & Company is a leading Canadian asset management company tracing its roots back more than 50 years. Goodman & Company offers a wide range of wealth management solutions through financial advisors. These include the mutual funds, hedge funds and closed-end investment trusts of Dynamic FundsTM, the portfolio solutions of the Marquis Investment Program, the flow-through limited partnerships of CMP(TM) and Canada Dominion and the high-net worth investment counsel of Goodman Private Wealth Management. Goodman & Company is a wholly owned subsidiary of DundeeWealth Inc. (TSX: DW).
Caution regarding forward-looking statements
Certain portions of this news release may contain forward-looking statements about the Terminating Funds and Continuing Funds (each, a "Fund"). Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar forward-looking expressions or negative versions thereof. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date.
Forward-looking statements are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, failure to receive unitholder approval of the mergers at the Special Meetings or failure to receive all required regulatory approvals to implement the mergers should they be approved by unitholders at the Special Meetings. We stress that the above mentioned list of important factors is not exhaustive.
We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing any undue reliance on forward-looking statements. Further, you should be aware of the fact that none of the Funds has any specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. For a complete disclosure record for each of the Funds, please visit their respective profiles at www.sedar.com. Unitholders are encouraged to consult with their own tax advisors for advice with respect to the tax consequences of the proposed mergers having regard to their own particular circumstances.
SOURCE DIVERSIGLOBAL(TM) DIVIDEND VALUE FUND
For further information: For further information: Customer Relations Centre, Goodman & Company, Investment Counsel Ltd., 1-800-268-8186 or www.dynamic.ca; Myra Reisler, Media Relations, (416) 365-5370