Benvest New Look Income Fund

Benvest New Look Income Fund

August 07, 2008 17:08 ET

Benvest New Look Income Fund Announces an Increase in its Monthly Distribution Commencing With August 2008

MONTREAL, QUEBEC--(Marketwire - Aug. 7, 2008) - Benvest New Look Income Fund (TSX:BCI.UN) (the "Fund") today announced that a cash distribution of $0.0542 per unit has been declared for the period of August 1st through August 31st, 2008. The distribution will be paid on September 19th, 2008 to unitholders of record at the close of business on August 31st, 2008. This raises the annualized amount of distribution to $0.65 per unit from $0.625 previously (4% increase). Since becoming an income fund in May 2005, this is the fifth increase in distributions and the new distribution rate represents a 44% increase over the initial distribution rate. The distribution of $0.0542 per unit includes for tax purposes a portion of $0.0186 as "eligible dividend", the difference being "other income".

The Fund's operating subsidiary, New Look Eyewear Inc., has also declared a dividend for August 2008 on its exchangeable shares of $0.0423 per exchangeable share, payable on September 19th, 2008 to the holders of exchangeable shares of record as at the close of business on August 31st, 2008. In accordance with requirements of Canada Revenue Agency, the corporation notifies its shareholders that the dividend on exchangeable shares is an "eligible dividend" for tax purposes, i.e. a dividend entitling shareholders who are Canadian resident individuals to a higher dividend tax credit. The exchangeable shares, which are not freely tradable, have been exchangeable on a one-for-one basis into units of the Fund since May 1st, 2006.

On May 1, 2005, Benvest Capital Inc. was converted into an income trust named the Benvest New Look Income Fund, the purpose of which is to hold securities of New Look Eyewear Inc. This subsidiary is a leading enterprise in the eye care industry in Eastern Canada, with growth opportunities based on demographic trends and the consolidation of the industry in Canada. As of July 31st, 2008, 5,862,830 units of the Fund were issued and outstanding. In addition, 3,870,404 exchangeable shares (on a consolidated basis) of the subsidiary were also issued and outstanding.

This press release may contain certain forward-looking statements that reflect the current views and / or expectations of Benvest New Look Income Fund with respect to its performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions. Actual results and events may vary. The statements contained in this release are not to be construed as tax advice and holders of units and exchangeable shares should seek their own independent tax advice.

Contact Information

  • Lise Melanson
    514-877-4299, ext. 2234