TORONTO, Dec. 16 2021 (GLOBE NEWSWIRE) – Middlefield Group is pleased to announce a series of product enhancements to better meet the needs of financial advisors and investors. As shown below, we will merge and convert several of our leading closed-end fund strategies to create a simpler, more profitable ETF platform. The manager believes that these conversions and mergers will benefit unitholders as they create larger and more liquid investments, resulting in tighter bid-ask spreads, lower expense ratios and unit prices that trade closer to their value. liquidation.
|Actively managed equity income funds|
|In keeping with our goal of providing value-added solutions that align with Middlefield’s areas of expertise and focus on equity income, these additions to our actively managed global ETF platform represent unique income-generating strategies that , in our opinion, investors would find it difficult to reproduce with investment products.|
|For a detailed illustration of the proposed changes, please visit:
Conversions and name change
The manager is pleased to announce the proposed conversions to ETFs of Global Innovation Dividend Fund (the âInnovation Fundâ) (TSX: BL.UN), Sustainable Infrastructure Dividend Fund (the âSustainable Infrastructure Fundâ) (TSX: INF.UN) and Global Dividend Growers Income Funds (the âDividend Growers Fundâ and collectively the âConversion Fundsâ) (TSX: GDG.UN), collectively referred to as the âConversionsâ. In addition, the manager of Middlefield REIT INDEXPLUS ETF (âREIT INDEXPLUSâ) (TSX: IDR) proposes to change the name of REIT INDEXPLUS to Middlefield Real Estate Dividend ETF and to modify the investment objectives of the fund as well as to make changes. ‘other modifications (the âREIT Modificationsâ).
Special meetings for the conversion funds and REIT INDEXPLUS will be held on March 1, 2022, at which unitholders of record for each of the respective funds on January 11, 2022 will be invited to approve the conversion of the applicable fund to an ETF or the modifications. of the REIT. Further details of the meetings and proposals of Middlefield Limited, manager of the Funds (the âManagerâ) will be provided in a joint information circular to Unitholders.
If approved, the Manager expects to implement the conversions by mid-March 2022. All costs of conversions and REIT modifications, including the cost of meetings, will be borne by the Manager. Following the REIT conversions and modifications, the funds will continue to be actively managed by Middlefield’s experienced and award-winning portfolio management team. Each of the funds in conversion and REIT INDEXPLUS will continue to trade on the TSX under their respective current ticker symbol until conversion. Conversions to ETFs and changes relating to REITs will not be taxable events for unitholders of the funds.
The manager is also pleased to announce that Digital Consumer Dividend Fund (“Digital consumer”) (TSX: MDC.UN) and Global Real Estate & E-Commerce Dividend Fund (âReal Estate and Electronic Commerceâ) (TSX: GEC.UN) will merge with the Innovation Fund. In addition, Middlefield Can-Global REIT Income Fund (âCan-Globalâ) (TSX: RCO.UN) will merge with REIT INDEXPLUS (each a âMergerâ and together âthe Mergersâ). The mergers are expected to be completed on or around February 15, 2022 (the âEffective Dateâ), with the Innovation Fund and REIT INDEXPLUS being the entities continued after the mergers. As described in more detail above, the Innovation Fund is expected to undertake a conversion (as defined above) into an exchange-traded fund named Middlefield Innovation Dividend ETF (the âETFâ) later in March 2022, and as such, Digital Consumer and Real Estate & E-Commerce Unitholders would become ETF unitholders shortly after the Merger.
The mergers will be carried out on a tax-deferred basis and, therefore, unitholders of the funds to be merged will not realize any capital gains or losses as a result of the mergers. The Manager has determined that the mergers would be in the best interests of the unitholders of the funds to be merged. All costs and expenses directly associated with the Mergers will be borne by the Manager and not by the merged funds.
Mergers will be effected at an exchange ratio calculated as the net asset value per unit of the merged funds divided by the net asset value per unit of the Innovation Fund and REIT INDEXPLUS, respectively, determined at the close of trading on the TSX on the preceding business day. immediately on the effective date. Pursuant to the Mergers, Innovation Fund and REIT INDEXPLUS will assume the liabilities of the respective merged funds and issue units of Innovation Fund and REIT INDEXPLUS in settlement of the purchase price of all property of the respective merged funds.
Unitholders of the merged funds who do not wish to participate in the mergers may sell their units in the market or deposit them for a special redemption of each merged fund prior to the mergers. However, unitholders should be aware that by offering units for redemption they will be exposed to price risk for the 16 days between the deadline for depositing units and the effective date of redemption, and that the proceeds of the redemption redemption will be paid in early February. The deadline for depositing units under this election is January 12, 2022 and the surrendered units will be redeemed as of January 28, 2022 at a price equal to the net asset value per unit of each of the respective merged funds on that date. Redemptions can be considered a disposition for the purposes of computing taxable income.
The Mergers remain subject to the satisfaction of all regulatory requirements and customary closing conditions.
Formed in 1979, Middlefield creates equity income mandates designed to balance risk and return to meet the demanding demands of financial advisors and their clients. These financial products include IPOs and ETFs listed on the Toronto Stock Exchange, mutual funds, fractional corporations, flow-through limited partnerships, and real estate investment funds and partnerships.
For more information, please visit our website at www.middlefield.com or contact Nancy Tham from our sales and marketing department at 1.888.890.1868.
Commissions, trailing commissions, management fees and expenses all may be associated with investing in ETFs. Please read the prospectus before investing. The rates of return shown are historical annual compound total returns, including unit value changes and the reinvestment of all distributions and do not take into account any sales, redemptions, distributions or optional charges or income taxes. payable by any holder of securities which would have reduced returns. ETFs are not guaranteed, their values ââchange frequently, and past performance may not be repeated.
Certain statements contained in this press release may be considered as forward-looking statements. Any statement that expresses or involves discussions regarding predictions, expectations, beliefs, plans, intentions, projections, goals, assumptions or future events or performance (often, but not always, using words or expressions such as “expects”, “is”, “anticipates”, “anticipates”, “considers” or “intends” (or negative or grammatical variations thereof), or asserting that certain actions , events or results (“may”, “could”, “would”, “could” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. may constitute forward-looking statements relating to: the proposed timing of conversions and their completion; the benefits of conversions; and the funds proposed to be converted. Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in forward-looking statements, including due to changes in the general economic and political environment, changes in applicable law, and the performance of each fund. There can be no assurance that the funds can fulfill these forward-looking statements and the funds do not undertake any obligation to update these statements. These forward-looking statements are only predictions; actual events or results may differ materially due to the risks facing one or more of the funds, many of which are beyond the control of the funds.