Business & Finance
Business and Finance
Business and Finance
Fri, March 23, 2012 Canadian Utilities &;; Telecom Income Fund Announces Year End Results
March 23, 2012 09:29 ET
Canadian Utilities & Telecom Income Fund Announces Year End Results
TORONTO, ONTARIO--(Marketwire - March 23, 2012) - Canadian Utilities & Telecom Income Fund (the "Fund") (TSX:UTE.UN) announces results for the period ended December 31, 2011. The net increase in net assets from operations amounted to $10.2 million or $2.01 per unit. Net assets were $62.8 million or $12.40 per unit, net of distributions to unitholders in the amount of $4.2 million or $0.84 per unit.
The Fund's investment objectives are (i) to pay unitholders monthly distributions in an amount targeted to be 7.0% per annum on the net asset value ("NAV") of the Fund; and (ii) to preserve and enhance the Fund's NAV while reducing portfolio volatility.
The Fund achieves its investment objectives by investing in a portfolio consisting principally of equity securities of large capitalization (over $1 billion) Utilities and, to a lesser degree, Telecommunications issuers listed on the Toronto Stock Exchange ("TSX"). Issuers selected for inclusion in the portfolio must have a minimum distribution yield of 2.0% per annum.
The Fund may also invest up to 20% of the Fund's NAV in equity securities of other Utilities and Telecommunications issuers listed on a North American stock exchange, subject to a minimum market capitalization of $250 million and a minimum distribution yield of 2.0% per annum.
The Fund employs a proprietary investment strategy, Strathbridge Selective Overwriting ("SSO"), to enhance the income generated by the portfolio and to reduce volatility. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.
The Fund's investment portfolio is managed by its investment manager, Strathbridge Asset Management Inc. The Fund's units are listed on TSX under the symbol UTE.UN.
| Selected Financial Information : ($ Millions) | |||
| Statement of Net Assets | 2011 | ||
| Assets | $ | 63.0 | |
| Liabilities | (0.2 | ) | |
| Net Assets (Unitholders' Equity) | $ | 62.8 | |
| Statement of Financial Operations | |||
| Revenue | $ | 2.8 | |
| Expenses | (1.3 | ) | |
| Net Investment Income | $ | 1.5 | |
| Net Gain on Investments | 8.7 | ||
| Net Increase in Net Assets from Operations | $ | 10.2 | |
For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit [ www.strathbridge.com ].
