MONTREAL, March 16 /CNW/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary Global Infrastructure Fund (TSX: OGN.un) (the "Fund") is pleased to announce that, subject to regulatory approval, the Fund will merge (the "Merger") with O'Leary Global Infrastructure Yield Fund (the "Mutual Fund") which is an open-ended mutual fund trust 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 October 29, 2008.
The Mutual Fund's objectives are to generate income and long-term capital growth by investing primarily in common equity and fixed income securities issued by global infrastructure issuers. The Mutual Fund is not limited to how much it can invest or keep invested in a country or sector. This will vary according to market conditions. Pursuant to the Merger, unitholders of the Fund will receive series X units of the Mutual Fund in exchange for their units of the Fund. Series X units of the Mutual Fund pay an annual management fee of up to 1.50% to the Manager (annual rate of trailing commission of up to 0.40%). Similar to the Fund, the Mutual Fund will pay unitholders monthly distributions of $0.06 per series X unit.
Subject to regulatory approval, the Merger will be implemented on a tax deferred basis after the expiry of the annual redemption notice period of the Fund (from April 15, 2010 to 5:00 p.m. on April 30, 2010). As of the end of business on May 4, 2010, units of the Fund are expected to be delisted from the Toronto Stock Exchange. Once the Merger is completed on or about June 1, 2010, subscriptions for additional investments and redemptions of the Mutual Fund will be made via FundSERV. Determination by the Manager of the exchange ratio with reference to NAV per unit of the Fund and NAV per unit of the Mutual Fund will be made as at the close of business on May 31, 2010.
The Manager believes that the Merger will provide investors with enhanced liquidity and pricing by providing them with the continuous right to redeem their units on a daily basis. Unitholders of the Mutual Fund will also be able to switch from their series X units into other series offered by the Mutual Fund. More information about the Mutual Fund's investment strategies and fees and expenses is set out in the Mutual Fund's simplified prospectus which is available on SEDAR and the Manager's website www.olearyfunds.com.
SOURCE O'LEARY GLOBAL INFRASTRUCTURE FUND
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