Capital Gains Income Streams

Capital Gains Income Streams

March 18, 2005 09:00 ET

Capital Gains Income STREAMS: Monthly Distribution Declared For Equity Dividend Share




MARCH 18, 2005 - 09:00 ET

Capital Gains Income STREAMS: Monthly Distribution
Declared For Equity Dividend Share

TORONTO, ONTARIO--(CCNMatthews - March 18, 2005) - The Board of
Directors of Capital Gains Income STREAMS (TSX:CGQ)(TSX:CGQ.E) ("CG
STREAMS") declares its regular monthly distribution of $0.0875 per
Equity Dividend Share (TSX:CGQ.E). In accordance with the distribution
program described below, there will be no distribution to the Capital
Yield Shareholders for the month of March 2005. The Equity Dividend
Share distribution will be payable April 8, 2005 to shareholders of
record as of March 31, 2005.

Holders of Equity Dividend shares continue to receive their regular
cumulative monthly fixed distribution of $0.0875 per share. To date
Equity Dividend shareholders have received 49 monthly distributions for
a total of $4.27 per share inclusive of this distribution.

The Board of Directors implemented a variable distribution program in
July 2002 based on equity market conditions at that time in order to
preserve its asset base over the long term. As market conditions have
improved and stabilized, the Board expects, effective July 2003, to
declare distributions going forward based on the size of the mid-month
managed portfolio of the corporation as follows:

Managed Portfolio Capital Yield
per unit Share Distribution
Mid month (net of Payment Annual Capital Yield Share
distributions) Rate Monthly Payment

Over $20.00 $ 2.50 $ 0.2083
$19.50 to $20.00 $ 2.00 $ 0.1667
$19.00 to $19.49 $ 1.50 $ 0.1250
$18.50 to $18.99 $ 1.25 $ 0.1042
$18.00 to $18.49 $ 1.00 $ 0.0833
Under $18 Nil Nil

The managed portfolio as of March 15, 2005 was $16.51 therefore the
March 31, 2005 distribution for the Capital Yield Share will be set at
nil per share. Elimination of the Capital Yield Share distribution when
the Managed Portfolio per unit declines below $18.00 (net of Capital
Yield Share distribution) is compliant with the requirements of the
initial prospectus dated February 23, 2001. The Board believes this is a
prudent decision and in the best interest of both classes of
shareholders over the long term. Based on the current market conditions,
the Board expects the above distribution policy to continue. To date,
Capital Yield shares have received a total of 23 monthly distributions
for a total of $4.17 per share.

The capital repayment forward agreement remains in force with Merrill
Lynch and TD Global Finance, a guaranteed subsidiary of TD Bank. This
will provide Capital Yield shareholders with a payment of $25.00 on
December 1, 2013. In addition, Capital Yield shareholders are entitled
to an additional payment equal to the value of the Managed Portfolio at
wind-up, if any, after payment to satisfy Equity Dividend Share
obligations of $15.00 per share.

The managed portfolio (the managed portion of the assets of CG STREAMS
not subject to the Capital Yield share repayment forward contract) is
invested primarily in a diversified portfolio of companies included in
the S&P 500 and the S&P/TSX 60. To provide additional returns above the
dividend and interest income earned on the managed portfolio, a covered
call writing program generates option premium income on stocks held in
the portfolio.

CG STREAMS top holdings include Royal Bank of Canada, CIBC, BCE, Bank of
America, Citigroup, Toronto-Dominion Bank, Bank of Montreal, Merrill
Lynch, FedEx and J.P. Morgan as of March 15, 2005. The economic exposure
will vary according to the level of option premiums written against the
underlying holdings. The list of holdings is subject to change as the
portfolio is actively managed.

Quadravest Capital Management Inc., the investment manager of CG
STREAMS, is focused on the creation and management of enhanced yield
products for retail investors.

Distribution Details:

Distribution per Capital Yield Share (CGQ): $ Nil
Distribution per Equity Dividend Share (CGQ.E) $ 0.0875
Ex-Dividend Date: March 29, 2005
Record Date: March 31, 2005
Payable Date: April 8, 2005


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