Lawrence Payout Ratio Trust Announces Conversion into Open-Ended Mutual Fund and Broadening of Investment Mandate



    TSX Symbol: LPU.UN

    TORONTO, Aug. 7 /CNW/ - Lawrence Asset Management Inc., the Manager of
Lawrence Payout Ratio Trust (the "Fund"), a TSX-listed, closed-end investment
fund, is pleased to announce that Unitholders of the Fund approved a proposal
to convert the Fund into an open-ended mutual fund at Special Meeting of
Unitholders held today.
    The conversion of the Fund into an open-ended mutual fund was proposed to
provide Unitholders with enhanced liquidity and improved valuation. Units of
the Fund will no longer be listed and posted for trading on the TSX as of
August 24th, 2007, but instead will be redeemable at their net asset value on
a weekly basis. The first weekly redemption date will be August 31st, 2007.
The Fund will continue its objective to pay Unitholders monthly distributions
of $0.0583 per unit and the same low annual management fee of 0.45% will
apply. Upon conversion, the name of the Fund will change to Lawrence Income &
Growth Fund.
    As of the close of business on August 3rd, 2007, units of the Fund traded
at a discount of approximately 2.11% to their net asset value, however, the
historical discount to net asset value has typically been in the 5%-7% range.
The Net Asset Value of the Units on August 3rd, 2007 was $8.26. The TSX has
been the main source of liquidity for investors (in addition to the annual
redemption at net asset value each August) and investors wishing to dispose of
their units other than through the annual redemption have sold their units at
the trading price on the TSX at a discount to the net asset value. With the
conversion to an open-ended mutual fund approved, investors will be able to
redeem units at their net asset value on a weekly basis. In addition, client
account statements will begin reporting the net asset value per unit of the
Fund rather than the market price.
    In the future, all existing Unitholders will have the opportunity to
purchase additional units of the Fund at their net asset value on a weekly
basis (subject to qualifying such additional units for distribution by
simplified prospectus) at the same low annual management fee of 0.45%. This
will allow existing investors to further enjoy the low-cost nature of the
Fund.
    As part of the conversion, Unitholders of the Fund approved the creation
of a new class of units to be offered to new investors (subject to qualifying
the units for distribution by simplified prospectus). Similar to the existing
class of units, the new class of units is expected to be available for
purchases and redemptions on a weekly basis at the net asset value per unit
and Unitholders will receive monthly distributions. The annual management fee
for the new class is expected to be 1.00%.
    Unitholders also approved a broadening of the Fund's investment mandate
to permit investments in securities of Canadian income funds, convertible
bonds, debentures, high yield debt instruments, listed equity securities, cash
and cash equivalents and any other yield-based security or asset class that
develops over time.

    Lawrence Asset Management Inc. is a performance-oriented investment firm
that manages a growing family of alternative investment funds designed to
deliver a combination of capital appreciation and yield in a tax efficient
manner. The firm draws upon the experience of its partners and advisory board
to identify sectors and asset classes that will deliver returns to its
investors. Lawrence Payout Ratio Trust is managed by Lawrence Asset Management
Inc.

    %SEDAR: 00021336E




For further information:

For further information: Investor Relations, Catherine Stretch, (416)
362-6283, info@lawvest.com, www.lawrenceasset.com

Organization Profile

LAWRENCE PAYOUT RATIO TRUST

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890