Northern Rivers announces proposed changes to its mutual funds

    TORONTO, Feb. 19 /CNW/ - In its capacity as Manager of the Northern
Rivers Funds, Northern Rivers Capital Management Inc. ("Northern Rivers")
announced today plans to seek unitholder approval for changes to three of its
mutual funds:

    1.  To approve a change in the Manager of the Northern Rivers Monthly
        Income and Capital Appreciation Fund ("Monthly Income Fund") and the
        Northern Rivers Monthly Income and Capital Appreciation Trust Pool
        ("Monthly Income Pool") to Mavrix Fund Management Inc. ("Mavrix").

    2.  To approve merging the assets of the Northern Rivers Evolution Fund
        ("Evolution Fund") into the Northern Rivers Conservative Growth Fund
        ("Conservative Growth Fund").

    In the opinion of Northern Rivers these proposals are in the best
interests of all unitholders in each fund. To meet regulatory requirements,
each proposal requires the approval of the Independent Review Committee of the
funds, which was granted on February 4, 2009, and also requires approvals from
unitholders, regulators, and certain other parties. A Notice and Management
Information Circular for the proposals will be sent to affected unitholders in
the near future.

    Northern Rivers Monthly Income and Capital Appreciation Fund
    Northern Rivers Monthly Income and Capital Appreciation Trust Pool

    Mavrix is a Toronto based, publicly listed investment management firm
offering a broad range of mutual funds and other investment vehicles through
the advisor channel across Canada. Northern Rivers believes that Mavrix'
significant distribution network will allow for greater sales exposure for the
Fund, thus increasing assets under management and spreading costs over a
larger asset base. "The Fund's sophisticated structure will benefit from
greater economies of scale" commented Robyn Graham, Vice President Sales &
Marketing. "Cost synergies and broader exposure with the Mavrix family of
funds will allow the Fund to thrive going forward, and we're confident
unitholders will be best served by this decision." Upon approval, the Monthly
Income Fund's name will be changed to the Mavrix Tax Deferred Income Fund.
    Importantly, the Investment Manager of the Monthly Income Fund and the
Monthly Income Pool, Cassels Investment Management Inc., will not change with
the proposed change in fund management. "We are excited about our new
relationship with Mavrix", Rob Cassels said, "and look forward to the
opportunity of working with their marketing team and the large network of
advisors supporting their funds." Northern Rivers and Mavrix will work closely
together to ensure a seamless transition of the fund to its new manager.

    Northern Rivers Evolution Fund

    Northern Rivers is asking unitholders of the Evolution Fund to approve
the merger of the Evolution Fund into the Northern Rivers Conservative Growth
Fund. Effective February 23, 2009, the Evolution Fund will be closed to new
    Northern Rivers is proposing the merger due to the small size of the
Evolution Fund and the associated costs of maintaining smaller funds. The
funds share similar growth objectives, with the Conservative Growth Fund
offering greater diversification by sector and capitalization to help dampen
volatility. Merging the assets of the two funds should result in a lower
management expense ratio for the Conservative Growth Fund post merger, as
costs of the fund will be spread over a larger asset base.
    Alex Ruus, MBA, P.Eng, CFA is currently co-portfolio manager of the
Evolution Fund with Hugh Cleland, CFA. Mr. Ruus will remain manager of the
Conservative Growth Fund post merger. Mr. Ruus also manages the Northern
Rivers Conservative Growth Fund LP and the Northern Rivers Global Energy Fund
LP. Mr. Cleland will focus his energies on Northern Rivers' flagship
Innovation mandate to which Northern Rivers remains committed for continued
growth and improved returns. Both managers will continue to work closely
together to generate investment ideas for all of the Northern Rivers Funds.
    "We are enthusiastic about the prospects for our funds." Messrs. Ruus and
Cleland said. "We have conviction in our holdings and believe that these moves
best position our funds and our investors for the future."

For further information:

For further information: Robyn Graham, Vice President, Sales &
Marketing, Northern Rivers Capital Management Inc., Phone: (416) 597-1226 ext.
1 or 1-866-902-7060 ext. 1

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