MONTREAL, Dec. 14 /CNW Telbec/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary Global Equity Income Fund (TSX: OGE.un) (the "Fund") is pleased to announce that, subject to regulatory and other approvals, the Fund will merge (the "Merger") with O'Leary Global Equity Yield Fund (the "Mutual Fund") which is an open-ended mutual fund managed by the Manager. The Merger will be effected in accordance with the "permitted merger" provisions set out in the declaration of trust of the Fund dated May 30, 2008.
The Manager will file all required amendments to the simplified prospectus and annual information form of the Mutual Fund in order to ensure that the Mutual Fund's investment objectives and strategies are similar to those of the Fund and to create a new series of units which will be exchanged for trust units of the Fund. Investors in the Fund will not experience any change in the management fee as a result of the Merger. After the Merger, the new series of the Mutual Fund will distribute initially $0.50 per annum representing an annual distribution of 5% based on the anticipated $10 per unit issue price, which corresponds to a regular monthly distribution of $0.0417 per unit.
Subject to regulatory and other approvals, the Merger will be implemented on a tax deferred basis after the expiry of the annual redemption notice period of the Fund (from December 15, 2010 to 5:00 p.m. on December 31, 2010). Unitholders of the Fund will receive units of the Mutual Fund in exchange for their units of the Fund. The exchange ratio will be determined by the Manager with reference to the NAV per unit of the Fund and the NAV per unit of the Mutual Fund.
The Manager believes that the Merger, which is expected to be implemented on or about February 15, 2011, 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 from their units into other series offered by the Mutual Fund and into other mutual funds offered by the Manager. More information about the Merger and the Mutual Fund's investment objectives, strategies, fees and expenses will be provided by the Manager in the coming weeks.
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