Dynamic Funds

Dynamic Funds
diversiYield(TM) Income Fund

October 19, 2006 14:43 ET

diversiYield'TM' Income Fund Announces Issuer Bid

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2006) - Goodman & Company, Investment Counsel Ltd. ("Goodman & Company"), the manager of diversiYield™ Income Fund (TSX:DYI.UN) (the "Fund"), announces a normal course issuer bid. In accordance with the terms of its initial public offering, the Fund intends to purchase, through the facilities of the Toronto Stock Exchange ("TSX"), up to 1,111,044 trust units of the Fund (the "Trust Units") representing approximately 10% of the public float. The public float of the Fund as of October 12, 2006 was 11,110,436 Trust Units.

The Trust Units may be purchased for cancellation commencing on October 23, 2006 through to October 22, 2007 through the facilities of the TSX and may be purchased when the net asset value per Trust Unit exceeds its trading price. A Notice of Intention to Make a Normal Course Issuer Bid has been accepted by the TSX effective as of October 19, 2006.

The purpose of the normal course issuer bid is to provide the Fund with a mechanism to decrease the potential spread between the net asset value per Trust Unit and the market price of the Trust Units. The Fund had 11,263,567 Trust Units issued and outstanding as of October 12, 2006. For the period October 21, 2005 to October 12, 2006, 577,900 Trust Units were purchased by the Fund under its normal course issuer bid at an average trading price of $9.33 per Trust Unit (excluding commission charges).

The Fund is a TSX-listed closed-end investment trust which seeks to provide a stable monthly distribution through investment in a diversified portfolio comprised primarily of business, resource, real estate and utility trusts, high yield debt securities as well as other securities. As of October 12, 2006 the net asset value was $9.69 per Trust Unit and the closing trading price was $9.43 per Trust Unit (representing a discount of 2.68% when measured against the net asset value per Trust Unit).

Goodman & Company, the manager of the Fund, is a leader in the income trust market managing a broad range of core and specialized income trust funds, including: Dynamic Focus+ Diversified Income Trust Fund, Dynamic Focus+ Energy Income Trust Fund and Dynamic Focus+ Small Business Fund. Goodman & Company also manages diversiTrust™ Income Fund (DTF.UN), diversiTrust™ Stable Income Fund (DTS.UN), diversiTrust™ Income+ Fund (DTP.UN), diversiTrust™ Energy Income Fund (DTN.UN) and diversiGlobal™ Dividend Value Fund (DGD.UN), other TSX-listed closed-end investment trusts. Barry Allan of Marret Asset Management Inc. is sub-advisor for the diversiYield™ Income Fund and a leader in the high-yield debt market.

Goodman & Company is a leading Canadian investment firm tracing its portfolio management roots back nearly 50 years, with more than $20 billion in assets under management. Goodman & Company, including Dynamic Funds™ and its affiliates, offers a wide range of wealth management solutions through registered financial advisors, including mutual funds, fee-based programs (Viscount and Marquis), limited partnerships (CMP and Canada Dominion), a labour-sponsored fund, hedge funds and high net-worth investment counsel (Goodman Private Wealth Management). Goodman & Company is a subsidiary of Dundee Wealth Management Inc. (TSX:DW).

Contact Information

  • Goodman & Company, Investment Counsel Ltd.
    Customer Relations Centre
    Website: www.diversifunds.com
    Goodman & Company, Investment Counsel Ltd.
    Trevor Hampden
    Media Relations
    (416) 365-5002