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O';;Leary Funds Management LP announces details about the reorganizations of O';;Leary Canadian Equity Income Fun

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  Published in Business and Finance on Friday, September 30th 2011 at 16:47 GMT by Market Wire
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MONTREAL, Sept. 30, 2011 /CNW Telbec/ - O'Leary Funds Management LP, the manager and trustee (the "Manager") of O'Leary Canadian Equity Income Fund (TSX: OCZ.un) and O'Leary Canadian Income Opportunities Fund (TSX: OCY.un) announces details about the conversions and merger of both funds, subject to necessary approvals.

O'Leary Canadian Equity Income Fund Conversion

O'Leary Canadian Equity Income Fund ("OCZ") will convert into an open-end mutual fund on or about December 1, 2011 (the "OCZ Conversion Date"). The name, investment mandate and distribution policy of OCZ will not change as a result of the conversion. On the OCZ Conversion Date:

• OCZ will become an open-end mutual fund;
• the trust units of OCZ 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; and
• the aggregate management fee, which will include the current service fees payable by OCZ, will not change.

Once all operational steps required to implement the conversion of OCZ are completed, unitholders of OCZ will be able to redeem units on a daily basis at their net asset value via FundSERV.

O'Leary Canadian Income Opportunities Fund Conversion

O'Leary Canadian Income Opportunities Fund ("OCY") will convert into an open-end mutual fund on or about December 1, 2011 (the "OCY Conversion Date"). The name, investment mandate and distribution policy of OCY will not change as a result of the conversion. On the OCY Conversion Date:

• OCY will become an open-end mutual fund;
• the trust units will be redesignated as series X units;
• the trust units of OCY 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; and
• the aggregate management fee, which will include the current service fees payable by OCY, will not change.

Once all operational steps required to implement the conversion of OCY are completed and a receipt for the final simplified prospectus is received from the securities regulatory authorities, unitholders of OCY will be able to subscribe for additional units or redeem units on a daily basis at their net asset value via FundSERV. Unitholders will also be able to switch their units into other series offered by OCY or other series of units of other mutual funds offered by the Manager. More information will be available over the next few weeks once the Manager has filed the preliminary simplified prospectus and annual information form.

The conversions, in and of themselves, will not trigger tax consequences for the funds or their unitholders. However, non-residents who have their units redeemed as described below will have a disposition of those units for tax purposes.

Merger of OCZ into OCY

Subject to obtaining approval from the independent review committee of OCZ and OCY (the "IRC"), the Manager proposes to merge the mutual fund OCZ into the mutual fund OCY in February 2011 (the "Merger"). The Merger will be implemented pursuant to applicable exemptions from unitholder approval and regulatory approval requirements. Pursuant to the Merger, which will be implemented on a tax-deferred basis, unitholders of OCZ will receive series X units of OCY in exchange for their units of OCZ. The exchange ratio will be determined by the Manager with reference to the respective net asset value per unit of each fund as at the end of business on the day immediately preceding the date of the Merger. Upon obtaining IRC approval, the Manager will send written notice of the Merger to OCZ unitholders 60 days prior to the Merger effective date.

Important information for non-residents: unitholder accounts which are deemed to be non-resident of a Canadian province will not be allowed to hold units of OCZ or OCY following the conversions and accordingly, will be redeemed shortly after the conversions are completed.