Toronto, December 15, 2009 – Brookfield Investment Funds Management Inc., today announced that its previously announced proposal to combine three of its existing Funds into one Fund, to be named the Brookfield Soundvest Equity Fund, has been approved by the unitholders of each of the Funds at a joint meeting held today. The Funds to be combined are Brascan SoundVest Focused Business Trust (TSX:BSF.UN), Brascan SoundVest Total Return Fund (TSX:BST.UN), and Brascan SoundVest Diversified Income Fund (TSX:BSI.UN). The combination will also include amendments to the existing investment strategy and a change in Fund manager. The combination, amendments and change of manager are expected to occur on or about January 1, 2010.
At the joint meeting of unitholders held today, unitholders showed strong support for the proposed combination with unitholders of Brascan SoundVest Diversified Income Fund, Brascan SoundVest Total Return Fund, and Brascan SoundVest Focused Business Trust each voting in excess of 95% of votes cast in favour.
The combination will result in unitholders in each of Brascan SoundVest Total Return Fund and Brascan SoundVest Diversified Income Fund becoming unitholders in Brascan SoundVest Focused Business Trust, which will be renamed “Brookfield Soundvest Equity Fund” and its management fee will be reduced from 1.10% to 0.95%. The continuing Fund’s investment mandate will be expanded to allow investment in a broader set of primarily high yielding equity securities. The Fund’s investment objectives will remain the same: to provide unitholders with a stable stream of monthly distributions and to maximize long-term total return to unitholders. The new manager of the continuing Fund will be Brookfield Soundvest Capital Management Ltd., which will also continue to be the Investment Advisor to Brookfield Soundvest Equity Fund.
“We are pleased with the strong endorsement from unitholders. We believe that the combination of these Funds will result in several benefits to unitholders, including greater market capitalization and liquidity, lower administrative and regulatory costs, and an updated investment mandate. Expanding the investment flexibility of the continuing Fund will permit it to invest in a broader range of securities to off-set the reduction in the number of income trust investments resulting from the Canadian Federal Government’s decision announced on - 2 - October 31, 2006 to change the way that income trusts are to be taxed, effective January 1, 2011,” commented Kevin Charlebois, President of Brookfield Soundvest Capital Management Ltd.
Brascan SoundVest Funds are dedicated to providing high-quality investment funds to retail investors. The investment advisor and portfolio manager for the Funds is Brookfield Soundvest Capital Management Ltd., which is 50% owned by Brookfield Asset Management Inc. Brookfield Soundvest is an established investment advisor, providing investment management services to insurance companies, trusts, foundations and high net worth individuals.
For further information please visit our website at www.brookfieldfunds.com or contact:
Investor Relations
Tel: (888) 777-4019
Email: inquiries@brookfieldfunds.com
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About Forward-looking Information
Note: This news release contains forward-looking information within the meaning of Canadian
provincial securities laws. The words “proposed”, “will”, “believes”, and other expressions, which are
predictions of, or indicate, future events, trends or prospects and which do not relate to historical
matters, identify the above mentioned and other forward-looking statements. Forward-looking
statements in this news release include statements regarding the proposed combination of the Funds
and other statements with respect the Manager’s beliefs, outlooks, plans, expectations and intentions.
Although the Manager believes that these forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not place undue reliance on them, or any
other forward-looking statements or information in this news release. The future performance and
prospects of the Funds, on a stand alone or on a combined basis, are subject to a number of known
and unknown risks and uncertainties. Factors that could cause actual results of the Funds to differ
materially from those contemplated or implied by the statements in this news release include whether
unitholders of the respective Funds vote to approve the proposed combination, changes in legislation
including tax laws and regulations and other risks and factors described in the documents filed by the
Manager with the securities regulators in Canada including under the heading “Risk Factors” in the
applicable Fund’s prospectus and most recently filed Management Report of Fund Performance and
Annual Information Form and other risks and factors described in the continuous disclosure documents
of the Funds available at www.sedar.com or www.brookfieldfunds.com. Except as required by law,
the Manager undertakes no obligation to publicly update or revise any forward-looking statements or
information, whether as a result of new information, future events or otherwise.