|
The Trust's original investment objectives were to pay monthly distributions and to return the original issue price of $25.00 to unitholders on termination date of December 31, 2012. As of May 2006, the new fund objective is to return at least $25.75 per unit to unitholders on termination date of December 31, 2012.
|
In May 2006, unitholders approved a proposal to provide further certainty to the net asset value at Termination. The forward agreement was settled and the proceeds were used to purchase a portfolio of zero coupon debt securities issued by the Government of Canada or Canadian provincial governments. Accordingly, the investment strategy has been changed to invest in zero coupon bonds, as well as, sufficient cash and cash equivalents to cover all costs and expenses of the Trust until Termination Date (December 31, 2012).
|
- Net Asset Value at quarter end June 30, 2010 was $25.40 versus $25.06 on March 31, 2010.
- The Bank of Canada took the lead of the G7 countries by raising rates in the second quarter. On June 1, the key leading rate was raised by 25 basis points to 0.75% after more than a year at 0.50%. This had minimal effect of the value of the portfolio.
- The trading price on June 30, 2010 was $24.61, up from the March 31st trading price of $24.49.
- The June 30th trading price of $24.61 represents a discount to NAV of $0.79 per unit or –3.11% of the $25.40 NAV.
- Investors are reminded that this product has two sources of liquidity: exchange trading and through a redemption facility provided by the manager:
- Units may be submitted for redemption through your broker and must be received at least 5 business days before month end.
- Monthly redemptions provide for proceeds of 96.0% of month end NAV and the annual (in December) redemption feature provides for proceeds of 100.0% of NAV.
|
