MONTREAL, March 20, 2013 /CNW Telbec/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary U.S. Strategic Yield Advantaged Fund (TSX: OUY.u OUY.un) (the "Fund") announces details about the conversion (the "Conversion") of the Fund into an open-end mutual fund on or about May 24, 2013 (the "Conversion Date").
The investment mandate of the Fund will not change as a result of the Conversion. The Conversion will be implemented on a tax deferred basis. Class A units and Class U units may be surrendered for redemption during the month of April, 2013 prior to 5:00 p.m. (Toronto time) on the last business day in April, 2013. Units surrendered for redemption during this period will be redeemed on April 30, 2013 and Unitholders will receive payment on or before the 15th day following April 30, 2013.
Unitholders of record, as at April 30, 2013, will receive the final monthly distribution of $0.06 CAD per Class A unit and $0.06 USD per Class U unit. This represents the final distribution as a closed-end fund and is expected to be paid on or before May 15, 2013.
On the Conversion Date:
- The Class A units and the Class U units will be delisted from the Toronto Stock Exchange at the close of business on or about May 24, 2013;
- The Fund will become an open-end mutual fund;
- The trust units of the Fund will become redeemable at their net asset value per Class A and Class U unit on a daily basis;
- The class A units will be exchanged for Series X hedged units and the Class U units will be exchanged for Series X unhedged units;
- The fee paid to the Manager will be reduced from 1.50% to 1.30% and the fee paid to the Manager for service fees payable to dealers will be increased from 0.40% to 0.60% for an aggregate management fee of 1.90% for the Series X hedged units and the Series X unhedged units.
Once all operational steps required to implement the Conversion are completed and a receipt for the final simplified prospectus is received from the securities regulatory authorities, subscriptions for additional investments and redemptions can be made via FUNDSERV. The Manager believes that the Conversion will provide investors with enhanced liquidity and pricing by providing them with the continuous rights to subscribe for additional units or redeem units on a daily basis at their net asset value. Unitholders will also be able to switch their units into other series offered by the Fund and into Series X units of other mutual funds offered by the Manager.
Important information for non-residents: Unitholder accounts which are deemed to be non-resident of a Canadian province will not be allowed to hold units of the Fund following the Conversion and accordingly, will be redeemed shortly after the Conversion is completed.
O'Leary Funds Management LP is a Canadian investment fund manager of mutual funds and closed-end funds striving to provide Canadian investors with reliable and strategic income solutions. Based on our value-yield investment philosophy, Canadian and global investment opportunities are identified through a disciplined investment process. Our core principles, Income, Capital Appreciation and Capital Preservation, are driven by each portfolios investment objectives. Our portfolios are diversified by sector, region and asset class. For more details about O'Leary Funds, visit www.olearyfunds.com.
SOURCE: O'Leary Funds Management LP
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