Government Strip Bond Trust

Government Strip Bond Trust

August 25, 2006 16:03 ET

Government Strip Bond Trust: Announces Semi-Annual Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 25, 2006) - Government Strip Bond (the "Trust")(TSX:GSB.UN) announces results for six months ended June 30, 2006. Net realized income before distributions amounted to $10.7 million or $1.53 per unit. Net assets were $130.6 million or $20.22 per unit.

The Fund's investment objectives are to return at a minimum the original issue price of the units ($25.00) to unitholders upon termination of the Fund and to preserve the value of the Fund's Managed Portfolio.

On May 23, 2006, the unitholders of the Trust approved a proposal to reposition the Trust. The Trust's investment objectives are: (i) to return at least the original issue price of the Units ($25.00 per Unit) to Unitholders upon termination of the Trust; (ii) to provide Unitholders with a stable stream of monthly distributions targeted to be at least $0.1823 per Unit ($2.1875) per annum or 8.75% on the original issue price); and (iii) to preserve the value of the Trust's managed portfolio (the Managed Portfolio described below), which will provide Unitholders with capital appreciation above the original issue price. The Trust intends to achieve its investment objectives by investing in a diversified portfolio (the "Managed Portfolio") consisting principally of equity securities of companies selected from the S&P/TSE 60 Index and of companies with a market capitalization in excess of US$5.0 billion selected from the S&P 500 Index.

The Trust's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. Fund Units are listed on The Toronto Stock Exchange under the symbol GSB.UN.

Selected Financial Information: ($ Millions)

Statement of Financial Operations
for the six months ended June 30, 2006

Revenue $0.8
Net Realized Gains 11.2

Less: Expenses (1.3)

Net Realized Income Before Distributions $10.7

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

Contact Information

  • Mulvihill Structured Products
    John Mulvihill
    President & CEO
    (416) 681-3966 or (800) 725-7172
    Mulvihill Structured Products
    Don Biggs
    Senior Vice President
    (416) 681-3966 or (800) 725-7172