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TORONTO, Dec. 23, 2016 /CNW/ - During 2016, Moneda Latam Corporate Bond Fund (the "Fund") realized a significant capital gain on the final settlement of the Forward Agreement. As a result, all of the Fund's cash distributions for 2016 will be characterized as capital gains.
To the extent the Fund has net income for tax purposes, including net realized capital gains, for 2016 in excess of cash distributions paid to Unitholders, the Fund's Declaration of Trust provides that a special distribution (the "Special Distribution") for the difference will automatically be allocated to Unitholders on the last day of the year. Based on the Fund's estimated net income for tax purposes, including net realized capital gains, for 2016 (including the capital gain realized on the final settlement of the Forward Agreement), the Special Distribution is estimated to be $1.10 per Class A Unit and US$1.10 per Class U Unit. As set out in the Declaration of Trust, the Special Distribution will not be paid in cash but will be paid in Units which will then be automatically consolidated, resulting in Unitholders of record on December 31, 2016 incurring a non-cash capital gain equal to the Special Distribution per Unit with a matching increase in their adjusted cost base per Unit.
The Fund is an investment fund established to provide holders of Units with investment exposure to a diversified portfolio of fixed income securities of companies located in, or with significant operations in, Latin America, primarily denominated in U.S. dollars. The Fund's investment objectives are to: (i) preserve and enhance the net asset value of the Fund; and (ii) provide Unitholders with quarterly distributions through exposure to the total return performance of the Moneda Deuda Latinoamericana Fondo de Inversion (the "Moneda Fund"), a Chilean listed investment fund established in 2000 which is actively managed by Moneda S.A. Administradora de Fondos de Inversion. Moneda Asset Management S.A., the parent company of the Portfolio Manager, was established in 1993 and is a leading independent asset manager headquartered in Santiago, Chile.
The Class A Units of the Fund are listed for trading on the Toronto Stock Exchange under the symbol MLD.UN.
SOURCE Moneda LatAm Corporate Bond Fund
For further information: Investor Relations, Moneda LatAm Corporate Bond Fund, Web site: www.scotiamanagedcompanies.com, Email: [email protected], 26th Floor, 40 King Street West, Toronto, Ontario M5W 2X6, Tel: (416) 945-4262, Fax: (416) 863-7425