The following are the names, office(s) held and principal occupations of the directors and officers of the Company:
Brian D. McChesney
President, Chief Executive Officer and Director
Stephen D. Pearce
Chief Financial Officer and Director
(Director, Scotia Capital Inc.)
(Managing Director, Scotia Capital Inc.)
James P. Bowland
Director and Chair of the IRC
(Senior Advisor, Alexander Capital Group and Corporate Director)
Thomas A. Pippy
Director and Chair of the Audit Committee
(Professor, Conestoga College)
Director and Chair of the Board
|Net Asset Value (NAV) per Unit||$8.39|
|Market Price (TSX)||$8.01|
|Trailing 12-Month Distribution||$0.5375|
The Fund intends to make quarterly cash distributions to unitholders of record on the last business day of each calendar quarter. The Trust does not have a fixed distribution but generally intends to make quarterly distributions through pre-settlements of the forward agreement, based on the dividends and other distributions received on the underlying portfolio and premiums realized by the Trust pursuant to its option writing strategy less the operating expenses. 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 represent returns of capital are generally non-taxable to a Unitholder but reduce the Unitholder's adjusted cost base of the Units for tax purposes. For historical distribution amounts, please see distribution information.
The following provides a summary of the redemption rights available to Unitholders. Please refer to the prospectus for complete details.
Unlike most mutual funds the Units are listed allowing holders to exit by selling their Units. In addition, they are also redeemable at any time. Because of the manner in which the redemption prices are calculated, investors are almost always better off selling their Units on the market rather than redeeming them. It should be noted that all the redemptions listed below constitute a taxable disposition of the Units at the time of the redemption.
Units may be surrendered for redemption on the second last business day in a month other than a month in which the Annual Redemption Date occurs (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 pm on the date which is the last business day of the month preceding the Monthly Redemption Date. Payment of the proceeds of redemption will be made on or before the 15th day following such Monthly Redemption Date, subject to the Manager's right to suspend redemptions in certain circumstances.Unitholders surrendering a Unit for redemption on a Monthly Redemption Date will receive a redemption price equal to the lesser of (a) 95% of the "weighted average trading price" of the Units on the principal market on which the Units are quoted for trading (currently anticipated to be the TSX) during the 15 trading days preceding the applicable Monthly Redemption Date; and (b) the "closing market price" of the Units on the principal market on which the 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").
Commencing in 2014, Units may be redeemed on the second last business day of December (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 100% of the Net Asset Value per Unit as of such date, less any costs and expenses incurred by the Fund in connection with funding the redemption.
Mandatory Market Purchase Program
Pursuant to the Declaration of Trust, the Fund will undertake a mandatory market purchase program pursuant to which the Fund will offer to purchase any Units offered in the market at a price that is less than 98% of the latest NAV per Class A Unit. The Fund will publish this price on the Manager's website at www.scotiamanagedcompanies.com each day on which the TSX is open for business. Please refer to the prospectus for complete details.Taxation
A Unitholder will generally be required to include in computing income for a taxation year the amount of the Trust's net income, including net realized taxable capital gains, paid or payable to the Unitholder in the taxation year. The non-taxable portion of the Trust's net realized capital gains paid or payable (whether in cash or in Units) to a Unitholder in a taxation year will not be included in the Unitholder's income for the year.
On the disposition or deemed disposition of a Unit, the Unitholder will realize a capital gain (or capital loss) to the extent that the Unitholder's proceeds of disposition, net of any reasonable costs of disposition, exceed (or are less than) the adjusted cost base of the Units. For the purpose of determining the adjusted cost base to a Unitholder, when a Unit is acquired, the cost of the newly acquired Units will be averaged with the adjusted cost base of all Units owned by the Unitholder as capital property before that time.