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TORONTO, Jan. 13, 2014 /CNW/ - Marret Multi-Strategy Income Fund (TSX: MMF.UN) (the "Fund") is a closed-end trust that was created to provide investors with attractive, risk adjusted returns and tax advantaged distributions through exposure to actively managed investment portfolios consisting primarily of income generating securities (the "Underlying Portfolios") held by Marret MSIF Trust (the "Trust"). The Fund obtains exposure to the Underlying Portfolios of the Trust through a forward agreement.
As described in the Fund's prospectus dated February 25, 2011 in connection with the Fund's initial public offering (the "Prospectus"), Marret is required to rebalance the Trust's exposure to the Underlying Portfolios at least annually and as frequently as necessary to comply with the Trust's investment restrictions. On any such rebalancing, the Trust's exposure to each of the Underlying Portfolios will be adjusted such that the exposure to each of the Underlying Portfolios will be allocated among such portfolios in the Manager's discretion and without regard to equal weighting.
Today, the Fund's manager, Marret Asset Management Inc. ("Marret") announced a rebalancing of the Underlying Portfolios of the Trust to take effect immediately.
The effect of the rebalancing will be to increase the Trust's exposure to high yield and resource yield bonds and decrease the exposure to investment grade bonds and equity-oriented investments. Prior to this rebalancing the Trust's assets were allocated among the Underlying Portfolios as follows:
|Underlying Portfolio||Allocated Percentage|
|Marret High Yield Hedge Portfolio||22.5%|
|Marret Investment Grade Hedge Portfolio||32.5%|
|WARATAH Income Portfolio||30%|
|Marret Resource Yield Portfolio||15%|
On the rebalancing the Trust's assets will be allocated among the Underlying Portfolios as follows:
|Underlying Portfolio||Allocated Percentage||Change in Allocation|
|Marret High Yield Hedge Portfolio||30%||Increase by 7.5%|
|Marret Investment Grade Hedge Portfolio||20%||Decrease by 12.5%|
|WARATAH Income Portfolio||20%||Decrease by 10%|
|Marret Resource Yield Portfolio||30%||Increase by 15%|
Marret has reported to the Independent Review Committee of the Fund and the Trust on the performance of the Underlying Portfolios and the rebalancing set forth above. As described in the Prospectus, the Independent Review Committee is required to determine if the rebalancing gives rise to a conflict of interest, and, if so, the Independent Review Committee will report its determination to Unitholders of the Trust and the Fund in its annual report, which will be available on the Marret's website at www.marret.com, or at the Unitholder's request at no cost, by contacting Marret at 416-214-5800.
About Marret Asset Management Inc.
Marret Asset Management Inc. is the manager of the Fund and is 65% owned by CI Financial Corp. Marret and its experienced team of investment professionals led by Barry Allan specialize exclusively in fixed income and, particularly, in high yield debt strategies. Barry Allan, the President and Chief Investment Officer, founded Marret in 2000, following a career at Altamira, Nesbitt Thomson and a Canadian chartered bank. Mr. Allan has over 30 years of experience in credit and fixed income markets.
About CI Financial Corp.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.cifinancial.com.
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: Marret Multi-Strategy Income Fund
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