JOINT PRESS RELEASE - ENERGY INDEXPLUS Dividend Fund to be merged into Middlefield Global Infrastructure Mutual Fund
CALGARY, April 10, 2015 /CNW/ - Middlefield is pleased to announce its intention to merge ENERGY INDEXPLUS Dividend Fund ("Energy Indexplus" or the "Fund") into Middlefield Global Infrastructure Mutual Fund ("Global Infrastructure Fund") effective on or about June 17, 2015, with Global Infrastructure Fund being the continuing fund (the "Merger"). Given the relative illiquidity of the Fund's units on the Toronto Stock Exchange ("TSX"), the Merger is expected to benefit the Fund's unitholders by providing an opportunity to hold units of Global Infrastructure Fund, a strong-performing mutual fund that offers daily redemptions at net asset value.
Completion of the Merger is expected to take place on or about June 17, 2015, (the date of completion being the "Effective Date"), and is subject to receipt of all necessary regulatory and other applicable approvals, including the approval of the Fund's unitholders, and customary closing conditions. The Merger will be effected at an exchange ratio calculated as the net asset value per unit of Energy Indexplus divided by the net asset value per Series A unit of Global Infrastructure Fund, determined as at the close of trading on the TSX on the business day immediately prior to the Effective Date.
A special meeting of unitholders for the purpose of considering the Merger will be held on June 10, 2015 commencing at 10:00 a.m. (Toronto time) at the offices of Fasken Martineau DuMoulin LLP, 333 Bay Street, Suite 2400, Bay Adelaide Centre, Toronto, ON, M5H 2T6. Details regarding the proposed Merger will be contained in an Information Circular which will be mailed to the Fund's unitholders. The record date for the special meeting is April 30, 2015. After considering the Information Circular and related meeting materials, unitholders of the Fund are encouraged to complete and return their proxy forms in order that their units can be voted at the meeting. The board of directors of the manager of the Fund has determined that the Merger is in the best interests of the Fund and, accordingly, recommends that unitholders vote in favour of the Merger.
Information about Global Infrastructure Fund
Investment Objective - The objective of Global Infrastructure Fund is to maximize long-term total return by investing in a diversified portfolio of companies that own, develop, maintain or are involved in the global infrastructure sector. Infrastructure assets provide a wide variety of essential services, such as electricity, water and transportation. Middlefield Capital Corporation (the "Advisor") believes that high barriers to entry and economies of scale often provide owners and operators with very attractive returns and a natural hedge against inflation. In addition, investing in global infrastructure securities provides unitholders with exposure to companies with visible and stable cash flows, while providing geographic diversification, transparency and liquidity.
Distribution - Global Infrastructure Fund currently provides its unitholders with a monthly distribution of $0.05/unit (5.0% of Series A net asset value on an annualized basis as at April 9, 2015).
Performance - As at March 31, 2015, Global Infrastructure Fund Series A had one-year and since inception returns of 6.5% and 15.9%, respectively, assuming the reinvestment of distributions.
ENERGY INDEXPLUS units trade under the symbol IDE.UN on the TSX.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the merger and expected completion thereof; the expected benefits of the merger; and the funds that are proposed to be merged. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, some of which are beyond the control of the funds.
SOURCE ENERGY INDEXPLUS Dividend Fund
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