TORONTO, Dec. 17, 2013 /CNW/ - Return On Innovation Advisors Ltd. (the "Manager") announced today that a monthly cash distribution of $0.042 per unit will be paid on January 15, 2014 to unitholders of ROI Canadian Mortgage Income Fund (TSX: RIL.UN) (the "Fund") of record as of December 31, 2013.
The Manager also announced today that a special non-cash distribution of $0.066 per unit will be paid on December 31, 2013 to unitholders of RIL.UN of record as of December 30, 2013. The special distribution, consisting of capital gains, is a result of taxable income of the Fund exceeding the aggregate of the cash distributions made during the year.
The units of the Fund that are issued for the non-cash portion of the distribution will be consolidated immediately with all other units of the Fund outstanding, so that thereafter, in most cases, a unitholder of the Fund will hold the same number of units as were held before the issue of such units. The additional units would be issued at a value equal to the closing trading price on December 30, 2013, being the last trading day on the Toronto Stock Exchange ("TSX") before the payment date of the distribution. A non-resident unitholder of the Fund may have fewer units after the consolidation by reason of withholding tax requirements in respect of the distribution to be satisfied by the issue of units.
The investment objective of ROI Canadian Mortgage Income Fund is to provide unitholders with attractive risk adjusted, monthly, tax advantaged cash distributions, a nominal after-tax current yield, long-term capital appreciation and preservation of capital by investing primarily, directly or indirectly in, or by obtaining economic exposure through the forward agreement to, an actively managed diversified portfolio of commercial mortgages, loans secured by, or that provide a participating interest in, real property or ownership interests in real property.
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Return On Innovation Advisors Ltd. undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no guarantee that an investment in the Fund will earn any positive return in the short or long term nor is there any guarantee that the Fund's investment objectives will be achieved or that the net asset value per unit will appreciate or be preserved.
SOURCE: ROI Canadian Mortgage Income Fund
For further information:
Wilfred Vos, Bcs, FMA, CIM, CFP, FCSI, DMS, CBV, MBA, CFA
President and Founding Partner