Benvest New Look Income Fund

Benvest New Look Income Fund

October 19, 2006 15:35 ET

Benvest New Look Income Fund Announces the Third Increase in its Monthly Distribution Commencing with October 2006

MONTREAL, QUEBEC--(CCNMatthews - Oct. 19, 2006) - Benvest New Look Income Fund (TSX:BCI.UN) (the "Fund") today announced that a cash distribution of $0.05 per unit has been declared for the period of October 1st through October 31st, 2006. The distribution will be paid to unitholders of record at the close of business on October 31st, 2006 and will be paid on November 20th, 2006. This raises the annualized distribution to $0.60 per unit from $0.55 per unit previously (a 9.1% increase). Since becoming an income fund in May 2005, this is the third increase in distributions and the new distribution rate represents a 33.3% increase over the initial distribution rate.

The Fund's operating subsidiary, New Look Eyewear Inc., has also declared an increased dividend for October 2006 on its exchangeable shares of $0.0384 per exchangeable share, payable on November 20th, 2006 to the holders of exchangeable shares of record as at the close of business on October 31st, 2006. These shares, which are not freely tradable, have been exchangeable on a one-for-one basis into units of the Fund since May 1st, 2006. The increase in New Look Eyewear Inc. dividends is equivalent to the increase in distributions to unitholders by the Fund, after taking into account income tax considerations.

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 September 30th, 2006, 5,496,395 units of the Fund were issued and outstanding. In addition, 4,153,804 exchangeable shares 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.

Contact Information

  • Benvest New Look Income Fund
    Lise Melanson
    514-877-4299, ext. 2234