TORONTO, Aug. 15, 2017 /CNW/ - Top 20 U.S. Dividend Trust (the "Fund") announced today that it is calling a meeting of its unitholders to consider a proposal to extend the term of the Fund for an additional five years.
The Fund currently uses a forward agreement to obtain tax-advantaged exposure to an equally-weighted portfolio (the "Portfolio") comprised of the 20 highest yielding equity securities included in the Dow Jones Industrial Average. The Portfolio currently is held by TTU Trust. Following the scheduled maturity of the forward agreement on October 10, 2017, TTU Trust will be terminated and the Fund will commence holding the Portfolio directly.
The extension will involve, among other matters, (i) extending the term of the Fund to permit unitholders to continue to hold their investment until October 31, 2022, (ii) the Fund adopting the current investment objectives, strategies and restrictions of TTU Trust, (iii) combining the aggregate management fees currently charged to the Fund and TTU Trust into a single, consolidated management fee, and (iv) creating a special retraction right to provide unitholders who do not wish to extend their investment with the option of retracting their units for cash equal to their net asset value per unit on October 31, 2017.
A special meeting of unitholders will be held on October 5, 2017 to consider and vote on the extension. September 1, 2017 will be the record date for determining the unitholders entitled to receive notice of and vote at the special meeting. Details of the proposed extension will be outlined in an information circular to be prepared and delivered to unitholders in connection with the special meeting and which will be available on www.sedar.com. The extension is subject to receipt of all necessary regulatory approvals.
About the Fund
The Fund's current investment objectives are to provide unitholders with stable monthly tax-advantaged distributions and the opportunity for capital appreciation through exposure to the Portfolio by virtue of its forward agreement. The Class A Units of the Fund are listed for trading on the Toronto Stock Exchange under the symbol TUT.UN.
SOURCE Top 20 U.S. Dividend Trust
For further information: Investor Relations, Top 20 U.S. Dividend Trust, (416) 945-4173, E-mail: [email protected], Website: www.scotiamanagedcompanies.com