European Premium Dividend Fund

September 18, 2008 16:13 ET

European Premium Dividend Fund-Distribution, September 2008

BURLINGTON, ONTARIO--(Marketwire - Sept. 18, 2008) - European Premium Dividend Fund (TSX:EPD.UN) (the "Fund") today announced that in accordance with its declaration of trust, it will suspend payment of monthly distributions on its Trust Units effective immediately in order to protect the Fund's Net Asset Value and to preserve its ability to rebuild and meet its investment objectives in the long term.

The Fund's portfolio of securities comprised primarily of European dividend-paying companies has experienced a sharp decline resulting in a reduction in the Fund's net asset value. As stated in the declaration of trust of the Fund, Copernican Capital Corp. (the "Manager") may suspend distributions on the Trust Units if the Net Asset Value per Trust Unit would be less than $7.50 after giving effect to such distributions, other than any distributions required so that the Fund will not be liable for income tax under the Income Tax Act. Due to the recent and sharp decline in the Net Asset Value of the Fund, no distribution will be paid to unitholders of record as of September 30, 2008. A re-evaluation will be conducted next month to determine whether the distribution can be reinstated for unitholders of record as of October 31, 2008.

A unitholder that has continually held units since inception will have received a total of $0.62 per unit as of payment date.

Contact Information

  • Copernican Capital Corp.
    Client Service Department