Press release from Marketwire
Front Street Strategic Yield Fund Ltd. Tax-Advantaged Distributions to Continue
Thursday, April 04, 2013
Front Street Strategic Yield Fund Ltd. Tax-Advantaged Distributions to Continue18:22 EDT Thursday, April 04, 2013
TORONTO, ONTARIO--(Marketwired - April 4, 2013) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES
On March 21, 2013, the Minister of Finance announced proposed measures (the "Character Conversion Budget Measures") which would affect certain tax consequences to many investors in investment funds, such as Front Street Strategic Yield Fund Ltd. (the "Fund") (TSX:FSS), that utilize forward purchase and sale agreements to obtain exposure to an underlying reference portfolio. Based on its review to date, Front Street Capital 2004 (the "Manager"), the investment fund manager of the Fund, believes that the Fund and the tax characterization of distributions received by shareholders will be unaffected by the Character Conversion Budget Measures until the expiration of the Fund's forward agreement in May 30, 2020, such expiration subject to the merger of the Fund described in the paragraph below.
The Manager is considering the implications of the proposed merger of the Fund and Front Street U.S. MLP Income Fund Ltd. previously announced on February 13, 2013, with respect to the Character Conversion Budget Measures. The Manager awaits further guidance from the Federal Government and the Minister of Finance on the implementation of the budget proposals and will provide additional details as soon as it is in a position to do so.
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 tax characterization of distributions received by shareholders until the expiration of the forward agreements; and the announcement of further details on the implementation of the budget proposals. 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 the Fund. There are no assurances the Fund can fulfill such forward-looking statements and the Fund does 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 the Fund, some of which are beyond the control of the Fund. Past performance is not a guarantee of future results.
FOR FURTHER INFORMATION PLEASE CONTACT:
Front Street Capital