Mulvihill Pro-AMS RSP

Mulvihill Pro-AMS RSP
Mulvihill Capital Management Inc.

Mulvihill Capital Management Inc.

May 04, 2005 16:03 ET

Mulvihill Pro-AMS RSP Fund Suspends Monthly Distribution


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MULVIHILL PRO-AMS RSP

TSX SYMBOL: PR.UN

MAY 4, 2005 - 16:03 ET

Mulvihill Pro-AMS RSP Fund Suspends Monthly
Distribution

TORONTO, ONTARIO--(CCNMatthews - May 4, 2005) - Mulvihill Pro-AMS RSP
(TSX:PR.UN) (the "Fund") has announced a suspension of its monthly
distribution to unitholders. Further to a press release on April 4, 2005
the manager has determined that $2.40 is the required minimum level of
the managed portfolio to continue paying distributions to unitholders.
The current level of the managed portfolio is $2.23. Consequently
distributions have been suspended.

The Fund's investment objectives are to return at a minimum the original
issue price of the units ($25.00) to unitholders upon termination of the
Fund and to preserve the value of the Fund's Managed Portfolio.

The forward purchase and sale agreement remains in force with Royal Bank
of Canada ("RBC") pursuant to which RBC will agree to pay to the Fund an
amount equal to the original issue price of C$25.00 for each unit
outstanding on the Termination Date on December 31, 2012, in exchange
for the Fund agreeing to deliver to RBC equity securities, known as the
Fixed Portfolio. The Managed Portfolio consists principally of equity
securities of companies selected from the S&P/TSX 60 Index and of
companies with a market capitalization in excess of US$5.0 billion
selected from the S&P 500 Index. The Fund may from time to time, write
covered call options in respect of all or part of the securities in the
Managed Portfolio. In addition, the Fund may write cash covered put
options in respect of securities in which the Fund is permitted to
invest.

The Fund's investment portfolio is managed by its investment manager,
Mulvihill Capital Management Inc. Fund units are listed on The Toronto
Stock Exchange under the symbol PR.UN.



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Distribution Details :
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Distribution per Unit: $nil
Payable Date: May 31, 2005
Record Date: May 16, 2005
Ex-Dividend Date: May 12, 2005

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Mulvihill Structured Products
    John Mulvihill
    President & CEO
    (416) 681-3966 or (800) 725-7172
    or
    Mulvihill Structured Products
    Bruce Graham
    Vice President
    (416) 681-3966 or (800) 725-7172
    hybrid@mulvihill.com
    www.mulvihill.com
    A member of the Mulvihill Capital Management Inc. Group of Funds