Brascan SoundVest Diversified Income Fund

Brascan SoundVest Diversified Income Fund
Brascan SoundVest Total Return Fund

Brascan SoundVest Total Return Fund


November 04, 2009 08:00 ET

Proposed Combination of Brascan SoundVest Diversified Income Fund, Brascan SoundVest Total Return Fund, and Brascan SoundVest Focused Business Trust

TORONTO, ONTARIO--(Marketwire - Nov. 4, 2009) - Brookfield Investment Funds Management Inc., (the "Manager") today announced a proposal to combine three of its existing funds into one fund, to be named the Brookfield Soundvest Equity Fund. The funds to be combined include Brascan SoundVest Focused Business Trust (TSX:BSF.UN), Brascan SoundVest Total Return Fund (TSX:BST.UN), and Brascan SoundVest Diversified Income Fund (TSX:BSI.UN) (collectively, the "Funds"). The combination will also include amendments to the existing investment strategy and a change in fund manager.

The proposal, which requires approval by unitholders of each of the three Funds, will result in unitholders in each of Brascan SoundVest Total Return Fund and Brascan SoundVest Diversified Income Fund becoming unitholders in Brascan SoundVest Focused Business Trust (the "Continuing Fund"). It is proposed that the Continuing Fund will be renamed and its management fee will be reduced from 1.10% to 0.95%. It is also proposed that its investment mandate be expanded to allow investment in a broader set of primarily high yielding equity securities. The investment objectives will remain the same: to provide Unitholders with a stable stream of monthly distributions and to maximize long-term total return to Unitholders.

The Manager believes that the combination will result in several benefits to unitholders, including greater market capitalization and liquidity, lower administrative and regulatory costs, and an updated investment mandate. Expanding the investment flexibility of the Continuing Fund will permit it to invest in a broader range of securities to off-set the reduction in the number of income trust investments resulting from the Canadian Federal Government's decision announced on October 31, 2006 to change the way that income trusts are to be taxed, effective January 1, 2011.

Costs of the combination including the preparation of materials for and the holding of Unitholder meetings will be borne by the Manager. If the extraordinary resolutions are approved, then the Continuing Fund will bear any costs associated with repositioning its investment portfolio to reflect the amended investment strategies and restrictions.

The Manager has called a joint meeting of Fund unitholders for 10:00 a.m. on December 15, 2009 to consider the extraordinary resolutions to approve the proposed combination. It is expected that materials for this meeting, which will provide further details on the proposals, will be available no later than three weeks prior to the date of the meeting and will be delivered to investors who hold units in the Funds as of the official record date, which is November 6, 2009.

Subject to unitholder and regulatory approval, review by the Funds' independent review committee, and other closing conditions, the merger is expected to be completed by January 1, 2010.

Brascan Soundvest Funds are dedicated to providing high-quality investment funds to retail investors. The investment advisor and portfolio manager for the Funds is Brookfield Soundvest Capital Management Ltd., which is 50% owned by Brookfield Asset Management Inc. Brookfield Soundvest is an established investment advisor, providing investment management services to insurance companies, trusts, foundations and high net worth individuals.

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About Forward-looking Information

Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws. The words "proposed", "will", "believes", and other expressions, which are predictions of, or indicate, future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release include statements regarding the proposed combination of the Funds and other statements with respect the Manager's beliefs, outlooks, plans, expectations and intentions. Although the Manager believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of the Funds, on a stand alone or on a combined basis, are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of the Funds to differ materially from those contemplated or implied by the statements in this news release include whether unitholders of the respective Funds vote to approve the proposed combination, changes in legislation including tax laws and regulations and other risks and factors described in the documents filed by the Manager with the securities regulators in Canada including under the heading "Risk Factors" in the applicable Fund's prospectus and most recently filed Management Report of Fund Performance and Annual Information Form and other risks and factors described in the continuous disclosure documents of the Funds available at or Except as required by law, the Manager undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

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