Gold Participation and Income Fund

Gold Participation and Income Fund

July 06, 2010 16:03 ET

Gold Participation and Income Fund Declares Monthly Distribution

TORONTO, ONTARIO--(Marketwire - July 6, 2010) - Gold Participation and Income Fund (the "Fund") (TSX:GPF.UN)(TSX:GPF.WT) has declared its monthly distribution of C$0.07307 per unit payable July 30, 2010 to Unitholders of record as of July 15, 2010.

The Fund's investment objectives are: (i) to maximize total returns for Unitholders including both long-term appreciation in net asset value ("NAV") per Unit and distributions; and (ii) to pay Unitholders monthly distributions in an amount targeted to be 6.5% per annum on the NAV of the Fund. The Fund achieves its objectives by investing its net assets in the gold sector –up to 50% in Shares of SPDR Gold Trust, an exchange-traded fund that seeks to track the price of gold by investing directly in gold bullion, and up to 75% in a portfolio (the "Managed Gold Portfolio") of equity securities selected from the S&P/TSX Global Gold Index, a dynamic international benchmark of the world's leading gold companies.

To generate additional returns above the dividend income earned on the Fund's investment portfolio, the Fund will, from time to time, write covered call options in respect of some or all of the securities in the portfolio. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.

The Fund's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The units and the warrants are listed on the Toronto Stock Exchange under the symbols GPF.UN and GPF.WT, respectively.

Each warrant of the Fund entitles its holder to purchase one unit of the Fund at a subscription price of $12.00 on November 6, 2009, February 5, 2010, May 7, 2010 or August 6, 2010 (each, an "Exercise Date"). Although the warrants may be tendered for exercise during the two-week period up to and including each Exercise Date, it is recommended that holders tender their warrants for exercise no later than two business days prior to the applicable Exercise Date.

Distribution Details :  
Distribution per Unit  $0.07307
Payable Date:  July 30, 2010
Record Date:  July 15, 2010
Ex-Dividend Date: July 13, 2010

A member of the Mulvihill Capital Management Inc. Group of Funds

Contact Information

  • Gold Participation and Income Fund
    Investor Relations
    416.681.3966 or Toll Free at 1.800.725.7172