TORONTO, April 16, 2014 /CNW/ - Middlefield Mutual Funds Limited (the "Mutual Fund") is pleased to announce that it has completed the rollover of MRF 2012 Resource Limited Partnership (the "Partnership") into the Groppe Tactical Energy Class (MID125) mutual fund. The Partnership was dissolved on April 15, 2014, at which time the net asset value was $20.08 per unit. As a result, the after-tax total return on money at risk for the life of the Partnership was approximately 23.4% for an Ontario investor subject to the highest marginal tax rate.
For those investors looking for tax shelter in 2014, please be advised that MRF 2014 Resource Limited Partnership is currently available for investment.
Partnership investors can determine their Groppe Tactical Energy shareholdings by multiplying the number of units they held in the Partnership by 1.03380744. Shares of Groppe Tactical Energy have now been credited to the accounts of beneficial holders of Partnership units. There are no fees charged on the rollover into the Mutual Fund, nor on redemptions of Mutual Fund shares.
The objective of Groppe Tactical Energy is to maximize long-term return by investing in equity and fixed income securities of issuers that operate in or have exposure to the oil and gas industry. As at March 31, 2014, Groppe Tactical Energy (MID 125) generated annualized total returns for the year-to-date, one and three year periods of 20.7%, 39.1% and 6.2%, respectively as well as an annualized total return of 13.6% since inception in July 2009.
The transfer to the Mutual Fund was a tax-free exchange which means that no disposition occurred and therefore no capital gains tax is payable as a result of the rollover. Investors can continue to defer the capital gains tax liability that arises upon disposition of their investment by retaining the shares of the Mutual Fund, which currently offers nine asset classes into which they can switch tax-free. These asset classes provide significant flexibility to suit numerous investment objectives including income, growth and safety of capital. In addition to Groppe Tactical Energy, the other classes currently offered are Income Plus, ActiveIndex REIT, Precious Metals, Canadian High Yield, Canadian Dividend Growth, Global Agriculture, Uranium Focused Metals and Short-Term Income. Investors should consult their advisors to determine the strategy that is most suitable for them.
SOURCE: MRF 2012 Resource Limited Partnership
For further information:
please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.
Calgary: 812 Memorial Drive NW, Calgary, Alberta T2N 3C8
Toronto: First Canadian Place, 58th Floor, P.O. Box 192, Toronto, Ontario M5X 1A6