Company Details

Directors and Officers

The following are the names, office(s) held and principal occupations of the directors and officers of the Trustee:

Brian D. McChesney
President, Chief Executive Officer and Director
(Corporate Director)

Stephen D. Pearce
Chief Financial Officer and Director
(Director, Scotia Capital Inc.)

Douglas Derry
Director
(Corporate Director)

Terry Jackson
Director
(Corporate Director)

D. Anthony Ross
Director
(Chair of the Board of Infrastructure Ontario)

Robert Hall
Director
(Managing Director, Scotia Capital Inc.)


Profile

The Fund has been established to provide investors with investment exposure, on a tax-advantaged basis, to an actively managed and diversified portfolio consisting primarily of U.S. dollar denominated high yield fixed income securities of companies in Latin America. The Fund's investment objectives are to: (i) preserve and enhance the net asset value of the Fund and; (ii) provide Unitholders with quarterly tax-advantaged distributions consisting primarily of returns of capital.

General Information

Distribution Policy

The Fund intends to make quarterly cash distributions to Unitholders of record on the last business day of each calendar quarter through the partial settlement of the Forward Agreement. The Fund does not have a fixed distribution but targets quarterly distributions through pre-settlements of the forward agreement based on the actual and expected returns on the portfolio less actual and expected expenses of the Fund. Based on current estimates, the quarterly cash distributions estimated to be $0.1375 per Class A Unit and US$0.1375 per Class U Unit ($0.55 and US$0.55 per annum, respectively) . For historical distribution amounts, please see distribution information.

Redemption

Commencing in 2013, Units may be redeemed on the second last business day in November (the "Annual Redemption Date") in any year. Units properly surrendered for redemption at least 45 days prior to an Annual Redemption Date will be redeemed on such Annual Redemption Date and the Unitholder will receive payment within 15 days of the Annual Redemption Date, subject to the Fund's right to suspend redemptions in certain circumstances. Unitholders will be entitled to receive a redemption price per Unit equal to the Net Assets per Unit as of such date, less any costs and expenses incurred by the Fund in connection with funding the redemption.

Monthly Redemption

In addition to the annual redemption right, Unitholders may choose to redeem Units on the second last Business Day in a month (a "Monthly Redemption Date"), subject to certain conditions. In order to effect such a redemption, the Units must be surrendered by no later than 5:00 p.m. (Toronto time) on the date which is the last Business Day of the month preceding the Monthly Redemption Date. Payment of the redemption price will be made on or before the 30th day following such Monthly Redemption Date, subject to the Manager's right to suspend redemptions in certain circumstances. Concurrently with the payment of the redemption price, the Fund may pay to the redeeming Unitholder a cash distribution in the amount of the net realized capital gains or income of the Fund incurred by it to fund the payment of the redemption price.

Unitholders surrendering a Class A Unit for redemption on a Monthly Redemption Date will receive a redemption price equal to the lesser of (a) 90% of the "weighted average trading price" of the Class A Units on the principal market on which the Class A Units are quoted for trading during the 15 trading days preceding the applicable Monthly Redemption Date; and (b) the "closing market price" of the Class A Units on the principal market on which the Class A Units are quoted for trading on the applicable Monthly Redemption Date less, in each case, any costs associated with the redemption, including brokerage costs (the "Monthly Redemption Amount").

Unitholders surrendering a Class U Unit for redemption on a Monthly Redemption Date will receive in U.S. dollars an amount equal to the U.S. dollar equivalent of the product of (i) the Monthly Redemption Amount and (ii) a fraction, the numerator of which is the most recently calculated Net Asset Value per Unit of a Class U Unit and the denominator of which is the most recently calculated Net Asset Value per Unit of a Class A Unit. For such purpose, the Fund will utilize the Bank of Canada Rate current at, or as nearly as practicable to, the Monthly Redemption Date in respect of a monthly redemption of Class U Units.

Termination

The Fund does not have a fixed termination date but may be terminated by a two-thirds majority vote at a meeting of Unitholders called for that purpose.

Taxation

It is expected that the quarterly distributions received by Unitholders will be characterized primarily as returns of capital and capital gains for tax purposes. Amounts distributed on the units that are characterized as return of capital are generally non-taxable to a Unitholder but reduce the Unitholder's adjusted cost base on the units for tax purposes.