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O';Leary Funds Management LP announces details about the conversion of O';Leary Founder';s Series Income &; Growth Fund into op

^{Published on 2010-10-12 07:35:36 - Market Wire}
 

MONTREAL, Oct. 12 /CNW/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary Founder's Series Income & Growth Fund (TSX: OFS.un) (the "Fund") announces details about the conversion (the "Conversion") of the Fund into an open-end mutual fund on or about November 1, 2010 (the "Conversion Date").

The name, investment mandate and distribution policy of the Fund will not change as a result of the Conversion. The Conversion will be implemented on a tax deferred basis after the expiry of the annual redemption notice period of the Fund (from October 15, 2010 to October 29, 2010).

There will be no exchange ratio because this is a conversion of the existing closed-end fund into an open-end mutual fund and not a merger. On the Conversion Date:

• the Fund will become an open-end mutual fund;
• the trust units of the Fund will be delisted from the Toronto Stock Exchange;
• the trust units will become redeemable at their net asset value per trust unit on a daily basis;
• the trust units will be re-designated as the "Founder's series units" and
• the management fee will be reduced to 0.95% for the Founder's series units (plus an amount equal to the service fee of 1.0%)

An additional series of units (to be designated as series F), into which the Founder's series units may be exchanged, will also be created on or before the Conversion Date which will have the same attributes as the Founder's series units except that there will be no service fee.

Once all operational steps required to implement the Conversion are completed and a receipt for the final prospectus is received, subscriptions for additional investments and redemptions can be made via FundSERV. The Manager believes that the Conversion will provide investors with enhanced liquidity and pricing by providing them with the continuous right to subscribe for additional units or redeem units on a daily basis. Unitholders will also be able to switch their units into other series offered by the Fund and into Founder's series units or other series of units of other mutual funds offered by the Manager.

The Manager filed last week a combined preliminary and pro forma simplified prospectus and annual information form to qualify the Founder's series units.

Important information: Unitholder accounts which are deemed to be non-resident of a Canadian province will not be allowed to hold units of the Fund following the Conversion and accordingly, will be redeemed shortly after the Conversion is completed.