Lawrence Payout Ratio Trust Announces Proposal to Convert into Open-Ended Mutual Fund

    TSX Symbol: LPU.UN

    TORONTO, June 28 /CNW/ - Lawrence Asset Management Inc., the Manager of
Lawrence Payout Ratio Trust (the "Fund"), a TSX-listed, closed-end investment
fund, announced that it has called a Special Meeting of unitholders of the
Fund to propose the conversion of the Fund into an open-ended mutual fund. The
record date for the Special Meeting is July 6, 2007 and the Special Meeting
will be held on August 7, 2007.
    The conversion of the Fund into an open-ended mutual fund is being
proposed to provide unitholders with enhanced liquidity and improved
valuation. If the conversion is approved, units of the Fund will no longer be
listed and posted for trading on the TSX, but instead will be redeemable at
their net asset value on a weekly basis. 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 June 27, 2007, units of the Fund traded at
a discount of approximately 4.66% to their net asset value, however, the
historical discount to net asset value has typically been in the 5%-7% range.
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. If the conversion to an open-ended mutual fund is 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.
    Lawrence Asset Management Inc. is also proposing to give all existing
unitholders 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.
    Over the past few months, investment advisors and retail investors have
expressed their desire for Lawrence Asset Management Inc. to create an
open-ended mutual fund available on a continuous basis to all investors. To
address this interest, as a part of the conversion, unitholders of the Fund
will be asked to approve 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 expect to receive monthly
distributions of $0.0583 per unit. The annual management fee for the new class
is expected to be 1.00%.

    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

    %SEDAR: 00021336E

For further information:

For further information: Investor Relations, Catherine Stretch, (416)

Organization Profile


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