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O';Leary Funds Management LP announces that the merger of O';Leary Global Equity Income Fund with its open-ended mutual fund O'

^{Published on 2011-02-15 15:00:23 - Market Wire}
 

MONTREAL, Feb. 15 /CNW Telbec/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary Global Equity Income Fund (TSX: OGE.un) (the "Fund") announces that, subject to regulatory approval, the Fund will merge (the "Merger") on March 4, 2011 with O'Leary Global Equity Yield Fund (the "Mutual Fund") which is an open-ended mutual fund trust managed by the Manager.

Once all operational steps required to implement the Merger are completed subscriptions for additional investments and redemptions can be made via FundSERV (series A units of the Mutual Fund are also available under the low-load purchase option).

The Manager has filed amendments to the simplified prospectus and annual information form of the Mutual Fund in order to ensure that the Mutual Fund's investment objectives and strategies are similar to those of the Fund and to create a new series of units which will be exchanged for trust units of the Fund.

Performance of the Fund provided +6.57% greater annual compound rate of return than the MSCI World Index, since inception in June 2008 through January 31, 2010, as the Fund generated +4.05% while the MSCI World Index which returned -2.52% over the same period. In addition to providing a greater return, the Fund provided relative stability, with a standard deviation since inception of 16.8%, proving to be 59% less volatile than the MSCI World Index. The Fund's actively managed portfolio has provided stable monthly income and long-term capital appreciation and is currency-hedged to the Canadian dollar. The Fund has invested primarily in common and preferred shares of global companies with a market capitalization of more than $1.0 billion.

Subject to regulatory approval, the Merger will be implemented on a tax deferred basis. Unitholders of the Fund will receive series X units of the Mutual Fund in exchange for their units of the Fund. The exchange ratio will be determined by the Manager with reference to the NAV per unit of the Fund and the NAV per unit of the Mutual Fund. Investors in the Fund holding series X units will not experience any change in the management fee as a result of the Merger. After the Merger, the new series of the Mutual Fund will distribute initially $0.50 per annum representing an annual distribution of 5% based on the anticipated $10 per unit issue price, which corresponds to a regular monthly distribution of $0.0417 per series X unit.

Units of the Fund will be halted at the opening and delisted at the close of the Toronto Stock Exchange on March 3, 2011.

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

This information does not reflect the expected performance of the fund(s) and is provided only to illustrate the experience and historic investment results obtained by O'Leary Funds Management LP. This information is not, and should not be construed as, indicative of the future performance of the securities or amounts which may be distributed by the fund(s). This information is provided solely for illustrative purposes, and should not be construed as a forecast or projection. Past performance does not guarantee future investment results.