| Tax-Efficient Income |
| Depending on the
characteristics of income received by the Fund, unitholders may receive a
portion of the distributions as a return of capital under Canadian tax rules.
The return of capital component reduces the adjusted cost base of the Fund
units for purposes of calculating capital gains tax when the units are sold. A
portion of the distributions is deemed a return on capital and taxable as
income. |
| |
| Distribution Enhancement |
| The Fund can utilize
its loan facility when necessary to assist in earning distributable income, as
well as effecting market purchases of units, maintaining liquidity and funding
redemptions. The Fund can borrow up to an amount not exceeding 30% of the value
of the assets within the managed portfolio and 25% of the value of the total
assets of the Fund. |
| |
| Downside
Protection Through Capital Support Payment |
| The Fund has entered
into forward agreements with CIBC and RBC, pursuant to which CIBC and RBC will
make a capital support payment to the Fund of $5.00 per unit outstanding on the
termination date in exchange for delivery of equity securities acquired by the
Fund. For further information, please refer to the Fund's
prospectus. |
| |
| Liquidity |
| TSX Listing The
Fund's units can be bought and sold on the TSX under the symbol
STZ.un. |
| |
| Redemptions.
Units may be surrendered for redemption on any business day that is at least 20
business days prior to December 31 (monthly redemption available for all other
month ends excluding December 31, at a discount to net asset value of the
lesser of 4% and $0.40 per Unit) and will be redeemed on December 31 of such
year, subject to the Fund's right to suspend redemptions in certain
circumstances. A Unitholder who surrenders Units for redemption at least 20
business days prior to December 31 of any year will receive payment on or
before the 10th business day following December 31. Unitholders whose Units are
redeemed will be entitled to receive a redemption price per Unit calculated
with reference to the net asset value of the Fund (NAV) determined as of the
applicable December 31 date. Any unpaid distribution declared on or before
December 31 in respect of Units redeemed on such date will be paid to the
Unitholder redeeming such Units on the date on which such distribution is
payable to Unitholders. For further information, please refer to the Fund's
prospectus. |
| |
| Eligibility For Investment |
| The Fund's units are
considered Canadian property for RRSPs, RRIFs, DPSPs and RESPs. |
