MONTREAL, Jan. 19, 2012 /CNW Telbec/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of the open-end mutual funds O'Leary Canadian Equity Income Fund ("Equity") and O'Leary Canadian Income Opportunities Fund ("Opportunities") is pleased to announce that the independent review committee ("IRC") of both funds has approved the merger of Equity into Opportunities (the "Merger"). The Merger will be completed on a tax-deferred basis and, now that IRC approval has been obtained, will be effected pursuant to applicable statutory exemptions from unitholder and regulatory approval requirements.
Pursuant to the Merger, which will be implemented on March 26, 2012 (the "Merger Effective Date"), unitholders of Equity will receive the corresponding series of units of Opportunities in exchange for their series A, series F, series H, series I, series M or series X units of Equity outstanding on the Merger Effective Date. The exchange ratio will be determined by the Manager with reference to the respective net asset value per unit of each fund as at the end of business on the day immediately preceding the Merger Effective Date. The Manager will send written notice of the Merger to Equity unitholders on January 25, 2012 being 60 days prior to the Merger Effective Date. Units of Equity will continue to be offered and unitholders will continue to be able to redeem units of Equity up to the day immediately preceding the Merger Effective Date.
The Manager also announces that the target distribution rates of series X units of each of Equity and Opportunities, as stated in the simplified prospectus of these funds, have been changed. Commencing January 2012 and until reset in the future, each of Equity and Opportunities will seek to provide unitholders of series X units with monthly distributions in cash on the basis of a target distribution of $0.72 per annum, representing an annual distribution of 6% based on a $12.00 per unit issue price, which corresponds to a regular monthly distribution of $0.06 per series X unit. There can be no assurance that either fund will be able to achieve its monthly distribution objectives.
The Manager has also decided to changed the name of O'Leary Canadian Income Opportunities Fund to O'Leary Canadian High Income Fund.
More information about O'Leary Canadian Equity Income Fund and O'Leary Canadian High Income Fund (formerly O'Leary Canadian Income Opportunities Fund) is set out in their simplified prospectus which is available on SEDAR at www.sedar.com and the Manager's website at www.olearyfunds.com.
Important information for non-residents: unitholder accounts which are deemed to be non-resident of a Canadian province are not allowed to hold units of Equity or Opportunities and, accordingly, will be redeemed.
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For media inquiries or additional information, please contact Investor Relations at [email protected] or at 877-849-2004 x226.