TORONTO, June 4, 2014 /CNW/ - Marret Asset Management Inc. announced today that the Marret High Yield Strategies Fund (TSX: MHY.UN) will pay a distribution of $7.5403 per unit to unitholders of record on June 12, 2014 ("Distribution Record Date") with a payment date of June 16, 2014 (the "Payment Date"). In accordance with the applicable rules of the Toronto Stock Exchange ("TSX"), the "due bill" trading procedures of the TSX will apply to the distribution. The units of the fund will trade on a "due bill" basis from two trading days prior to the Distribution Record Date (i.e., June 10, 2014) to the Payment Date, inclusively (the "due bill period"). Any trades that are executed on the TSX during the due bill period will be identified to ensure purchasers of the fund's units receive the entitlement to the distribution.
The units will commence trading on an "ex-dividend" basis on June 17, 2014, as of which date purchases of units will no longer have an attaching entitlement to the distribution. The due bill redemption date will be June 19, 2014.
The distribution represents the liquid portion of the fund's portfolio, which accounted for 88.46% of the net asset value per unit of $8.5235 at May 30, 2014. As previously announced, the fund had been scheduled to terminate on May 30, 2014. Instead, the fund will continue in order to hold two private positions (the "Private Portfolio"). The TSX has confirmed that the fund will continue to be listed after the Distribution Record Date. Marret's intention is to distribute the net proceeds from the Private Portfolio when the holdings are sold and the proceeds are received by the fund. As of May 30, 2014, the Private Portfolio accounted for $0.9832 or 11.54% of the fund's net asset value per unit.
The Private Portfolio consists of bonds issued by Cline Mining Inc. and Data & Audio-Visual Enterprises Holdings Inc. (Mobilicity). Cline holds various mineral assets, including the Elk Coal Mine in Colorado, which has almost 620 million tons of in-place coal. The Cline bonds are secured and represented $0.7983 of the fund's net asset value per unit as at May 30, 2014.
Mobilicity owns a mobile communications network, including valuable wireless spectrum licences. The fund holds secured and unsecured bonds issued by Mobilicity accounting for $0.1849 of the fund's net asset value per unit as at May 30, 2014.
Marret intends to publish a net asset value for the units on a weekly basis on its website at www.marret.com and will provide updates on the status of the Private Portfolio as warranted. No ongoing management or other fees will be charged by Marret for overseeing the liquidation of the Private Portfolio and the winding up of the fund. Normal operating expenses of the fund payable to third parties (for audit, custody, transfer agency services, etc.) will be payable by the fund from the proceeds of the Private Portfolio.
Given that the Fund is maintaining its listing on the TSX, the trust units will be considered to be qualifying securities for registered plans. Unitholders who hold their units within a registered plan will not be subject to tax on the distribution. The fund anticipates that the majority of the distribution(s) received by unitholders who do not hold their units within a registered plan will be received as return of capital. The exact treatment will depend on the unitholder's own circumstances. Unitholders are encouraged to consult with their own tax advisors.
About Marret Asset Management Inc.
Marret Asset Management Inc. specializes in fixed income and particularly in high-yield debt strategies. The experienced team of investment professionals is led by Barry Allan, President and Chief Investment Officer. He founded Marret in 2000, following a career at Altamira, Nesbitt Thomson and a Canadian chartered bank, and has over 30 years of experience in credit and fixed-income markets. Marret is 65% owned by CI Financial Corp.
This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions "seeks", "expects", "believes", "estimates", "will", "target" and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of Marret and the managers of the underlying portfolios regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. Marret believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Marret can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors" in the prospectus. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Marret undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.
SOURCE: CI Investments Inc.
For further information:
Marret Investor Services
416-214-5800 or [email protected]