Brascan SoundVest Rising Distribution Split Trust has announced (April 20, Material Change Report, via SEDAR):
On April 20, 2010, at an extraordinary meeting of unitholders of the Fund (the “Meeting”), the unitholders of the Fund approved resolutions with respect to a proposal (the “Proposal”) to amend the existing investment strategy and to change the fund manager for the Fund. The amendments and change of Manager included in the Proposal are expected to be completed on or about April 30, 2010.
At the Meeting on April 20, 2010, unitholders of Brascan SoundVest Rising Distribution Split Trust approved the Proposal by approximately 95%. Pursuant to the Proposal, the manager of the Fund will change to Brookfield Soundvest Capital Management Ltd. on or about April 30, 2010 (the “Effective Date”). Also on the Effective Date, the investment mandate of the Fund will be expanded to allow investment in a broader set of primarily high yielding equity securities. The 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. Further amendments to be made to the declaration of trust of the Fund on the Effective Date include eliminating the fixed termination date of the Fund, and permitting the manager, in its sole discretion to wind-up the Fund should its net asset value fall below $15 million, subject to compliance with the trust indenture between the Fund and CIBC Mellon Trust Company dated March 16, 2005 governing the 6% Preferred Securities.
According to the press release, Kevin Charlebois (who has overseen the vapourization of client money in the fund) is the new president of the new manager.
BSD.PR.A was last mentioned on PrefBlog when the extraordinary resolution paperwork was mailed. BSD.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.
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