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Tax-Efficient
Income |
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A significant
percentage of the distributions received by Capital unitholders will be
classified as return of capital under Canadian tax rules. The return of capital
component reduces the adjusted cost base of the units for purposes of
calculating capital gains tax when the units are sold. |
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Potential
for Increased Returns |
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Capital unitholders
will directly benefit from any capital appreciation or increase in
distributions paid by COMPASS Income Fund, the fund in which STRATA will
invest. |
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High
Quality |
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With a term to maturity
of less than six years, the Preferred Securities represent a short term, fixed
yield investment providing a 6% per annum return, paid quarterly. The Preferred
Securities rank senior to the Capital Units in respect of both distributions
and capital repayment. The Securities are rated Pfd-2 (low) by
DBRS. |
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| Liquidity |
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TSX Listing
The Capital Units and Preferred Securities can be bought and sold on the
TSX under the following symbols:
Capital Units: STW.UN
Preferred
Securities: STW.PR.A |
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Low Fee
Structure
There are no management fees or administration fees charged
to STRATA since the assets of this fund are invested entirely in COMPASS Income
Fund, a fund which is co-advised by Guardian Capital and
Middlefield. |
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Redemptions
Effective April 27, 2006, as a result of the two-for-one split of capital
units, a unitholder must surrender for redemption at least two capital units
(or a multiple of two). Capital units and preferred securities may be
surrendered for redemption on any business day that is at least 25 business
days prior to a valuation date. Unitholders may redeem capital units on the
November 30th valuation date of each year at a redemption price which is based
on the net asset value (NAV) per capital unit, aggregated for the two capital
units so surrendered. A Unitholder who surrenders units for redemption at least
25 business days prior to November 30 of any year will receive payment on or
before the 15th business day following November 30. Unitholders whose capital
units are redeemed will be entitled to receive a redemption price per unit
calculated with reference to the NAV of the Fund determined as of the
applicable November 30 date less any costs associated with the redemption,
including commissions. If a preferred security is not surrendered for
redemption in conjunction with two capital units, the excess paid by the Fund
to repurchase a preferred security will reduce the aggregated NAV of the two
capital units. Any unpaid distribution declared on or before November 30 in
respect of units redeemed on such date will be paid to the unitholder redeeming
such units on the date on which the distribution is payable to the unitholders.
For further information, please refer to the Fund's declaration of trust.
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| Eligibility For Investment |
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Capital Units and
Preferred Securities are considered Canadian property for RRSPs, RRIFs, DPSPs
and RESPs. |
