Income & Equity Index Participation Fund
TSX : IEP.UN

Income & Equity Index Participation Fund

March 30, 2006 09:30 ET

Income & Equity Index Participation Fund Announces Result of Special Meeting

CALGARY, ALBERTA--(CCNMatthews - March 30, 2006) - Income & Equity Index Participation Fund (TSX:IEP.UN) (the "Fund") today announced that the special meeting of Unitholders of the Fund scheduled for March 30, 2006 was not held as a result of the withdrawal by management of the resolution proposed to be put forward to Unitholders at the special meeting.

Management had proposed a resolution that would have authorized the administrator of the Fund to:

(a) sell the equity call options currently held by the Fund back to the issuing Canadian financial institutions or to any other financial institution;

(b) amend the declaration of trust of the Fund to permit the purchase by the Fund of new equity call options from one or more financial institutions;

(c) purchase from one or more financial institutions one or more new equity call options having substantially similar attributes as the existing equity call options held by the Fund, including being based on the S&P/TSX 60 Index, being capped at 30% appreciation and having a 5 year term; and

(d) amend the declaration of trust of the Fund to extend the termination date of the Fund from June 30, 2009 to September 30, 2011 to coincide with the renewed 5 year term of the new equity call options.

The proposed resolution would have allowed the Fund to realize upon the substantial gains accrued in the Fund's equity call options, while still providing Unitholders with the opportunity to realize further gains from the general equity markets and at the same time providing the Fund with the ability to annual increase distributions by as much as 47%.

Unitholders however have indicated their preference to maintain the current structure of the Fund intact, and accordingly management elected to withdraw the proposed resolution of Unitholders prior to the holding of the scheduled special meeting. As a result the Fund will continue to hold the existing capped equity call options until their maturity in 2009.

At this time, management does not intend to propose any further changes to the structure of the Fund or to the current level of the Fund's monthly distribution.

Contact Information

  • Income & Equity Index Participation Fund
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    1-877-261-9674
    Website: www.citadelfunds.com