MONTREAL, Oct. 12, 2012 /CNW Telbec/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary Canadian Income Opportunities Fund 2 (TSX: OCH.un) (the "Fund") is pleased to announce that, subject to regulatory approvals, the Fund will merge (the "Merger") with O'Leary Canadian High Income Fund (the "Mutual Fund") which is an open-ended mutual fund managed by the Manager. The Merger has been approved by the Investment Review Committee and by the Manager, as trustee of both funds. The Merger will be effected on or about December 14, 2012, in accordance with the "permitted merger" provisions set out in the declaration of trust of the Fund, dated November 26, 2010, and with the applicable regulations.
The Mutual Fund's investment objectives and strategies are similar to those of the Fund. The Manager will file all required amendments to the simplified prospectus and annual information form of the Mutual Fund in order to create a new series of units ("Series Y") which will be exchanged for the trust units of the Fund. Pursuant to the Merger, unitholders of the Fund will receive units of Series Y, in exchange for their trust units of the Fund. Upon completion of the Merger, the Fund will be terminated.
After the Merger, the new series of the Mutual Fund will initially distribute approximately $0.72 per annum representing an annual distribution of 7.1% based on a NAV per unit (as at October 9, 2012) of $10.05, which corresponds to a regular monthly distribution of $0.06 per unit.
Once all operational steps required to implement the Merger are completed, former unitholders of the Fund will be able to redeem their Series Y on a daily basis at their net asset value via FundSERV.
Subject to regulatory and other approvals, the Merger will be implemented on a tax deferred basis. The Manager believes that the Merger, which is expected to be implemented on or about December 14, 2012, will provide investors with enhanced liquidity and pricing by providing them with the continuous right to subscribe for additional units or redeem units on a daily basis. Unitholders of the Mutual Fund will also be able to switch their units into other series offered by the Mutual Fund and into 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 Mutual Fund following the conversions and accordingly, will be redeemed shortly after the merger is complete.
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 unique income solutions. Focused 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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