SCITI Trust Announces Unitholder Approval of Reorganization

    TORONTO, March 28 /CNW/ - SCITI Trust (the "Trust") announced today that
holders ("Unitholders") of SCITI Trust units ("Units") have approved a
proposal to reorganize the Trust that involves (i) the extension of the
originally scheduled redemption date to April 29, 2013, (ii) the creation of a
special retraction right on April 29, 2008 and (iii) an amendment to the
investment mandate of the Fund. The reorganization will become effective
provided holders of at least 2,500,000 Units retain their Units and do not
exercise the special retraction right.
    Unitholders who do not wish to continue their investment in the Trust
after April 29, 2008 must give notice that they wish to exercise the special
retraction right with respect to their Units on or prior to April 11, 2008.
Unitholders who retract their Units pursuant to such special retraction right
will be paid on April 29, 2008. Retracting Unitholders will receive their
share of the net realized proceeds from the sale of portfolio securities and
of other net assets together with any unpaid distributions in respect of such
Unit (payable to Unitholders of record on April 28, 2008).
    The reorganization will, if completed, change the Trust's investment
mandate. Under the proposed new investment mandate, the Fund's portfolio will
be based on a new index, the Scotia Capital High Yielding Equity Index (the
"Scotia HYE Index"), which will track the highest yielding equity securities
listed on the Toronto Stock Exchange without regard to corporate structure. In
order to be eligible for the Scotia HYE Index, potential constituents will
have to meet certain inclusion criteria including having a minimum market
capitalization of $300 million at the time of inclusion in the Scotia HYE
Index. The Trust's portfolio will comprise the top 50 highest yielding issuers
included in the Scotia HYE Index on an equal weight basis. Currently, the
Trust's portfolio consists of the 100 largest income funds (weighted on a
float capitalization basis) included in the Scotia Capital Income Trust Index
(the "SCITI"). The revised mandate of the Trust has been designed to provide
Unitholders with a well diversified, high yielding portfolio that will be
responsive to changes in the income trust market resulting from the tax
fairness plan introduced on October 31, 2006. It is expected that the revised
mandate will provide Unitholders with a higher yielding portfolio with greater
single name diversification and lower volatility than the current portfolio of
the Trust.

    About SCITI Trust

    The Trust is an investment trust which provides investors with a high
current yield and low cost diversification through a portfolio which until the
reorganization becomes effective consists of the 100 largest income funds
(approximately weighted on a float capitalization basis) included in the
    Unitholders are entitled to receive monthly distributions as declared by
the Trustee of the Trust. The Trustee generally intends to declare and pay
monthly distributions to the extent of forecasted distributions to be received
for a calendar quarter from the underlying income funds in the portfolio, less
the estimated operating expenses for the period. Any difference from the
forecast will be adjusted in the following quarter.
    The units of the Trust are listed for trading on The Toronto Stock
Exchange under the symbol SIN.UN.

    %SEDAR: 00019069E

For further information:

For further information: Investor Relations, SCITI Limited, Trustee of
SCITI Trust, (416) 945-4394, E-mail:, Web site:, 40 King Street West, 26th Floor, Toronto,
Ontario M5W 2X6, Tel: (416) 945-4394, Fax: (416) 863-7425

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