The Manager believes that European Focused Dividend unitholders will benefit from the Merger for the following reasons:
- Reduced management fee: Upon completion of the Merger, European Focused Dividend unitholders will see a substantial management fee reduction from 1.1% to 0.85%.
- Geographic diversification: Global Dividend Growers’ investment strategy includes, but is not limited to, investing in European securities.
- Larger asset base improves liquidity and lowers costs: The Merger is expected to result in a fund with a larger market capitalization, increased trading liquidity and lower operating costs on a per unit basis than European Focused Dividend.
About | |||||||||
Inception Date | 1-Year | 3-Year | 5-Year | Since Inception | |||||
-6.4% | 2.1% | 4.1% | 8.6% | ||||||
S&P/TSX Composite Index | -14.2% | -1.9% | 0.9% | 3.8% | |||||
MSCI World Index | -9.9% | 2.5% | 3.9% | 6.4% | |||||
Annualized total returns including reinvestment of distributions and net of fees as at | |||||||||
Source: Bloomberg and Middlefield. | |||||||||
The Merger will be effected on a tax-deferred roll-over basis and accordingly,
The Merger will be effected at an exchange ratio calculated as the net asset value per unit of European Focused Dividend divided by the net asset value per unit of
The unitholders of European Focused Dividend who do not wish to participate in the Merger can sell their units in the market or tender them for the regular annual redemption prior to the Merger. However, unitholders should be aware that by tendering units for redemption they will be exposed to pricing risk for the 20 days between the deadline to tender units and the effective date of the redemption, and that the redemption proceeds will be paid sometime in June. The deadline to tender units under this election has been extended to
In addition, European Focused Dividend is pleased to announce the remaining distributions for the second quarter of 2020 will be payable to unitholders as follows:
Record Date | Payable Date | Distribution Per Trust Unit | |
$0.05 | |||
$0.05 |
After the Merger, European Focused Dividend unitholders will receive Global Dividend Growers’ monthly distribution, which is currently targeted at
The Merger remains subject to the satisfaction of all regulatory requirements and customary closing conditions.
Units of European Focused Dividend and
For further information on either of European Focused Dividend or
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the Merger; the expected benefits of the Merger; and the funds that are proposed to be merged. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation and the performance of each fund. There are no assurances the funds can fulfill such forward-looking statements and the funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the funds, some of which are beyond the control of the funds.
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