ROI Capital Enters into New Forward Agreement for ROI Canadian Mortgage Income Fund

Oct 25, 2013, 10:17 ET from ROI Capital

TORONTO, Oct. 25, 2013 /CNW/ - Return On Innovation Advisors Ltd. ("ROI Capital"), announced today that ROI Canadian Mortgage Income Fund ("RIL.UN") has entered into a new forward agreement with a term of at least 30 days due to the upcoming expiration of its existing forward agreement. On July 11, 2013, the Department of Finance announced a proposal to extend the transition relief period for character conversion transactions, announced in the March 2013 federal budget, to December 31, 2014.  RIL.UN intends to enter into one or more forward agreements as outlined in the extension with a final valuation date of no later than December 31, 2014.

It is expected that the scheduled monthly distributions for RIL.UN will consist primarily of capital gains for taxable unitholders in 2013 and 2014. Following the settlement of the final forward contract on or about December 31, 2014, future scheduled monthly distributions are expected to consist principally of ordinary income.

About ROI Capital

Established in 2002, ROI Capital is a privately held Canadian investment firm that specializes in commercial mortgages, loans and private real estate. With a deep understanding of the fundamentals of the commercial real estate market, ROI Capital strives for capital preservation while seeking to deliver returns for investors. This is achieved by primarily focusing on income-producing properties in large urban markets. Today, ROI manages approximately $1.3 billion across 11 funds of which RIL.UN is listed on the Toronto Stock Exchange.

Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. 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 and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Return On Innovation Advisors Ltd. undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no guarantee that an investment in a Fund will earn any positive return in the short or long term nor is there any guarantee that a Fund's investment objectives will be achieved or that the net asset value per unit will appreciate or be preserved.