TORONTO, March 12, 2013 /CNW/ - Middlefield Mutual Funds Limited (the "Mutual Fund") is pleased to announce that it has completed the rollover of MRF 2011 Resource Limited Partnership (the "Partnership") into the Income Plus Class (MID800) mutual fund. The Partnership was dissolved on March 12, 2013 and, due to a challenging resource market over the last several months, terminated with a net asset value of $10.89 per unit. This resulted in an after-tax total return on money at risk for the life of the Partnership of -32.8% for an Ontario investor subject to the highest marginal tax rate.
Partnership investors can determine their Income Plus Class shareholdings by multiplying the number of units they held in the Partnership by 0.67884041 Shares of Inco me Plus Class have now been credited to the accounts of beneficial holders of Partnership units. The adjusted cost base of the shares of the Income Plus Class distributed to Partnership investors is $16.33722718 per share. There are no fees charged on the rollover into the Mutual Fund, nor on redemptions of Mutual Fund shares.
The objective of Income Plus is to provide a stable level of income while emphasizing capital preservation. The Fund invests in a diversified portfolio of fixed-income and dividend paying equity securities. As at January 31, 2013, Income Plus (MID 800) generated annualized total returns for the one, three, five and ten year periods of 3.4%, 7.3%, 7.8% and 9.5%, respectively as well as an annualized total return of 9.8% since inception in September 2000. In addition, Income Plus received the 2012 Lipper Fund Award for the #1 neutral balanced mutual fund over the three and ten year periods.
The transfer to the Mutual Fund was a tax-free exchange which means that no disposition occurred and therefore no capital gains tax is payable as a result of the rollover. Investors can continue to defer the capital gains tax liability that arises upon disposition of their investment by retaining the shares of the Mutual Fund, which currently offers nine asset classes into which they can switch tax-free. These asset classes provide significant flexibility to suit numerous investment objectives including income, growth and safety of capital. In addition to Income Plus, the other classes currently offered are Groppe Tactical Energy, ActiveIndex REIT, Precious Metals, Canadian High Yield, Canadian Dividend Growth, Global Agriculture, Uranium Focused Metals and Short-Term Income. Investors should consult their advisors to determine the strategy that is most suitable for them for the achievement of their own personal needs and objectives.
In addition, Middlefield Group is pleased to announce the initial public offering of MRF 2013 Resource Limited Partnership units. The offering is being made in each of the provinces and territories of Canada and intends to close on March 26, 2013.
The indicated returns are annualized compound total returns based on net asset value for the periods ended January 31, 2013 and are unaudited. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements included in this press release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect Middlefield's 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. Forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
SOURCE: MRF 2011 Resource Limited Partnership
For further information:
For further information, please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.