Financial Services Income Streams

Financial Services Income Streams

September 28, 2005 12:26 ET

Financial Services Income STREAMS: Financial Results For The Six Months Ending July 31, 2005

TORONTO, ONTARIO--(CCNMatthews - Sept. 28, 2005) - Financial Services Income STREAMS Corporation ("FSI STREAMS") (TSX:STR)(TSX:STR.E) reports financial results for the six months ending July 31, 2005.

The net asset value per unit (1 Equity Dividend share and 1 Capital Yield share) was $43.85 as at July 31, 2005. The Managed Portfolio per unit was $23.46 as at July 31, 2005.

During the six month period, Equity Dividend shareholders received distributions at the annual target rate of 7%. Capital Yield shareholders did not receive a distribution during the six months as per the variable distribution program. Since inception of Financial Services Income STREAMS in October 2000 to July 31, 2005, Equity Dividend Shareholders have received a total of $8.40 per share and the Capital Yield Shareholders have received a total of $4.25 per share.

FSI STREAMS is a mutual fund corporation that invests in a diversified portfolio consisting of common shares issued by companies included in the TSE Financial Services Index, the S&P Financials Index or the S&P Midcap Financials Index. FSI STREAMS was launched on October 11, 2000 and its investment portfolio is actively managed by Quadravest Capital Management.

FSI STREAMS' investment objectives are to provide holders of Equity Dividend shares with; (i) monthly cash dividends in the amount of $0.1458 per share to yield 7.0% per annum, and (ii) to return the original issue price of $25.00 at termination (February 1, 2011). The objectives for holders of Capital Yield shares are to provide; (i) monthly dividends of $0.2083 per share to yield 10.0% per annum, and (ii) to return the original issue price of $25.00 at termination (February 1, 2011) by way of a forward agreement with TD Global Finance (a guaranteed subsidiary of the TD Bank). Capital Yield Shareholders will also receive on termination date, the pro rata share of the balance, if any, of the Managed Portfolio after paying the holders of the Equity Dividend Shares $25.00 per Equity Dividend share.

Selected Financial Information from the Annual Statement of
Financial Operations:

For the Six Months Ending July 31 ($ Millions)

2005 2004
$ $

Income 0.419 0.395

Expenses 0.525 0.529
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Net investment income (0.106) (0.134)

Realized option premiums and gain on
sale of investments 0.557 0.780

Change in unrealized appreciation on
investments/forward agreements 1.755 (2.357)
------- -------

Increase (decrease) in net assets from
operations before distributions 2.206 (1.711)

Contact Information

  • Quadravest Capital Management
    Wayne Finch
    Chairman & Chief Investment Officer
    (416) 304-4443
    Quadravest Capital Management
    Laura Johnson
    Vice President
    (416) 304-4443
    Quadravest Capital Management
    Peter Cruickshank
    Chief Financial Officer
    (416) 304-4443