Toronto, April 20, 2010: Brookfield Investment Management (Canada) Inc., today announced that its previously announced proposal to amend the existing investment strategy of the Brascan SoundVest Rising Distribution Split Trust (the “Fund”) (TSX: BSD.UN & BSD.PR.A) and change the Fund manager has been approved by the unitholders of the Fund at a meeting held today. The amendments and change of manager are expected to occur on or about April 30, 2010.
At the meeting of unitholders held today, unitholders showed strong support for the proposed changes with unitholders of Brascan SoundVest Rising Distribution Split Trust voting more than 95% of votes cast in favour.
The changes will result in the expansion of the Fund’s investment mandate to allow investment in a broader set of primarily high yielding equity securities. The Fund’s investment objectives will remain the same: with respect to the preferred securities, (i) to provide securityholders with fixed quarterly interest payments in the amount of $0.15 per preferred security ($0.60 per annum to yield 6% per annum on the original subscription price of $10.00); and (ii) to repay the original subscription price at maturity on March 31, 2015; and with respect to the capital units, (i) to provide unitholders with regular distributions and (ii) to maximize long-term total return with the Fund’s portfolio. The new manager of the Fund will be Brookfield Soundvest Capital Management Ltd., which will also continue to be the Investment Advisor to the Fund. Also, the Fund will be renamed “Brookfield Soundvest Split Trust”.
“We are pleased with the strong endorsement from unitholders. We believe that the changes to the Fund will result in several benefits to unitholders, including increased economies of scale, lower operating expenses, and an updated investment mandate. Expanding the investment flexibility of the 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 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.
Brookfield 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 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 Fund are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of the Fund to differ materially from those contemplated or implied by the statements in this news release include 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 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 Fund 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.