TORONTO, May 16, 2014 /CNW/ - Marret Asset Management Inc. today issued
an update on Marret High Yield Strategies Fund (TSX: MHY.UN).
The majority of the net assets of the fund will be distributed to
unitholders of record on June 12, 2014 ("Distribution Record Date").
The fund had been scheduled to terminate on May 30, 2014. Instead, the
fund will continue in order to hold two private positions (the "Private
Portfolio"). The Toronto Stock Exchange has confirmed that the fund
will continue to be listed after the Distribution Record Date. Marret's
intention is to distribute the net proceeds from the Private Portfolio
when the holdings are sold and the proceeds are received by the fund.
As of April 30, 2014, the Private Portfolio accounted for $1.18 of the
fund's net asset value per unit of $8.75 or 13.5%. The remainder of the
fund, which accounted for 86.5% or $7.57 of the net asset value per
unit at April 30, 2014, is the liquid portion of the portfolio (the
"Liquid Portfolio") and will be distributed on June 16, 2014 to the
fund's unitholders. The actual distribution per unit will be based on
the net asset value of the fund and the value of the Liquid Portfolio
on May 30, 2014, which will be announced on or about June 2, 2014.
As previously disclosed, the Private Portfolio consists of bonds issued
by Cline Mining Inc. and Data & Audio-Visual Enterprises Holdings Inc.
(Mobilicity). Cline holds various mineral assets, including the Elk
Coal Mine in Colorado, which has almost 620 million tons of in-place
coal. The Cline bonds are secured and represented $0.83 of the fund's
net asset value per unit as at April 30, 2014.
Mobilicity owns a mobile communications network, including valuable
wireless spectrum licences. The fund holds secured and unsecured bonds
issued by Mobilicity accounting for $0.29 and $0.06, respectively, of
the fund's net asset value per unit as at April 30, 2014.
Marret intends to publish a net asset value for the units on a weekly
basis on its website at www.marret.com and will provide updates on the status of the Private Portfolio as
warranted. No ongoing management or other fees will be charged by
Marret for overseeing the liquidation of the Private Portfolio and the
winding up of the fund. Normal operating expenses of the fund payable
to third parties (for audit, custody, transfer agency services, etc.)
will be payable by the fund from the proceeds of the Private Portfolio.
Given that the Fund is maintaining its listing on the TSX, the trust
units will be considered to be qualifying securities for registered
plans. Unitholders who hold their units within a registered plan will
not be subject to tax on the distribution. The fund anticipates that
the majority of the distribution(s) received by unitholders who do not
hold their units within a registered plan will be received as return of
capital. The exact treatment will depend on the unitholder's own
circumstances. Unitholders are encouraged to consult with their own tax
advisors.
About Marret Asset Management Inc.
Marret Asset Management Inc. specializes in fixed income and
particularly in high-yield debt strategies. The experienced team of
investment professionals is led by Barry Allan, President and Chief
Investment Officer. He founded Marret in 2000, following a career at
Altamira, Nesbitt Thomson and a Canadian chartered bank, and has over
30 years of experience in credit and fixed-income markets. Marret is
65% owned by CI Financial Corp.
This press release contains forward-looking statements and information
within the meaning of applicable securities legislation.
Forward-looking statements can be identified by the expressions
"seeks", "expects", "believes", "estimates", "will", "target" and
similar expressions. The forward-looking statements are not historical
facts but reflect the current expectations of Marret and the managers
of the underlying portfolios regarding future results or events and are
based on information currently available to them. Certain material
factors and assumptions were applied in providing these forward-looking
statements. All forward-looking statements in this press release are
qualified by these cautionary statements. Marret believes that the
expectations reflected in forward-looking statements are based upon
reasonable assumptions; however, Marret can give no assurance that the
actual results or developments will be realized. 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, including the matters discussed under "Risks Factors" in
the prospectus. Readers, therefore, should not place undue reliance on
any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is made.
Marret undertakes no obligation to publicly update any such statement
or to reflect new information or the occurrence of future events or
circumstances except as required by securities laws. These
forward-looking statements are made as of the date of this press
release.
SOURCE CI Investments Inc.
