TORONTO, Oct. 22, 2014 /CNW/ - Marret Asset Management Inc. announced today that Marret Investment Grade Bond Fund (TSX: MIG.UN) will pay a non-cash special distribution of $1.45 per unit in the form of reinvested distributions on or before November 14, 2014 to unitholders of record at the close of trading on October 31, 2014.
The special distribution is part of the previously announced continuation of the fund for an additional five-year term (the "Continuation"), which was approved by unitholders at a special meeting held on October 2, 2014, and arises from the scheduled termination of the forward agreement of the fund on October 31, 2014. In connection with the termination of the forward agreement, the fund will dispose of the common share portfolio delivered in accordance with the forward agreement, triggering a realization of any accrued capital gains, which are generally subject to tax in the hands of taxable unitholders when distributed to them.
Following the payment of the special distribution, the additional units of the fund will be immediately consolidated with the previously outstanding units such that the number of outstanding units following the special distribution will equal the number of units outstanding prior to the special distribution.
In addition, the fund will pay its regular distribution of $0.05 per unit on or before November 14, 2014, to unitholders of record at the close of trading on the Toronto Stock Exchange on October 31, 2014.
On October 31, 2014, as previously announced, certain additional changes to the fund will be implemented in connection with the Continuation. Pursuant to these changes, the fund's monthly distribution policy commencing in November will be $0.045 per unit.
Accordingly, the fund will pay a distribution in the amount of $0.045 per unit on or before December 12, 2014 and January 15, 2015 to unitholders of record on November 28, 2014 and December 31, 2014, respectively. Further information relating to these changes can be found in the press release issued by the fund on October 2, 2014 and filed on SEDAR.
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.
This press release contains forward-looking statements and information within the meaning of applicable securities legislation, including but not limited to expectations regarding future distributions by the Fund. 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 Marret Asset Management Inc.'s current expectations regarding future results or events and are based on information currently available to management. 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.
Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, management 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 Fund's current Annual Information Form. 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 Asset Management Inc. and the Fund undertake 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 Asset Management Inc.
For further information: Marret Investor Relations, 416-214-5800 or [email protected]