Mulvihill Pro-AMS RSP Split Share Corp.

Mulvihill Pro-AMS RSP Split Share Corp.

March 30, 2005 09:00 ET

Mulvihill Pro-AMS RSP Split Share Announces Year End Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MULVIHILL PRO-AMS RSP SPLIT SHARE CORP.

TSX SYMBOL: SPL.A
TSX SYMBOL: SPL.B

MARCH 30, 2005 - 09:00 ET

Mulvihill Pro-AMS RSP Split Share Announces Year End
Results

TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) - Mulvihill Pro-AMS RSP
Split Share (TSX:SPL.A)(TSX:SPL.B) (the "Fund") announces results for
the year ended December 31, 2004. Net realized income before
distributions amounted to $2.9 million or $0.86 per unit. Net assets
were $23.45 per unit net of distributions to shareholders in the amounts
of $0.65 per Class A Share, and $1.29 per Class B Share.

The Fund's investment objectives for the Class A Shares are to provide
Class A Shareholders with fixed cumulative preferential monthly cash
distributions in the amount of $0.05417 per Class A Share (6.5% per
annum on the original issue price) and to pay such Shareholders $10.00
for each Class A Share held on redemption on December 31, 2013 (the
"Termination Date").

The Fund's investment objectives with respect to the Class B Shares are
to pay Class B Shareholders $20.00 for each Class B Share held on the
redemption of the Class B Shares on the Termination Date; and on the
Termination Date, to provide holders of Class B Shares with the balance
of the value of the Fund's Managed Portfolio (described below) after
paying Class A Shareholders $10.00 per Class A Share.

To further enhance the Fund's ability to return the original issue price
of Class A Shares on termination, the Fund contributes, every six months
(commencing September 30, 2002) an amount targeted to be a minimum of
$0.43 per Class A Share outstanding representing 1/23rd of the issue
price of a Class A Share, to an account (the "Class A Share Forward
Account") which will be used to acquire Canadian equity securities. The
Fund, at each such time, enters into a forward purchase and sale
agreement (each a "Class A Share Forward Agreement") with Royal Bank of
Canada ("RBC") until the forward price that would be payable to the Fund
under the Class A Share Forward Agreements on the Termination Date
equals the Class A share issue price ($10.00) multiplied by the number
of Class A Shares outstanding.

To provide the Fund with the means to return the original issue price of
the Class B Shares on termination, the Fund has entered into a forward
purchase and sale agreement with RBC pursuant to which RBC will agree to
pay to the Fund an amount equal to $20.00 in respect to each Class B
Share outstanding on the Termination Date in exchange for the Fund
agreeing to deliver to RBC equity securities (the "Fixed Portfolio").
The balance of the net proceeds of the offering (i) have been invested
by the Fund in a diversified portfolio consisting principally of
Canadian and U.S. equity securities that are listed on a major North
American stock exchange or market whose issues have a market
capitalization in excess of U.S. $5.0 billion if listed solely in the
United States or a market capitalization in excess of Cdn. $1 billion if
listed in Canada and (ii) will also be used to enter into the Class A
Shares Forward Agreements (collectively, the "Managed Portfolio").

The Fund may, from time to time, write covered call options in respect
of all or part of the securities in the Managed Portfolio. In addition,
the Fund may write cash covered put options in respect of securities in
which the Fund is permitted to invest.

The Class A Shares trade under the symbol SPL.A, and the Class B Shares
trade under the symbol SPL.B on the Toronto Stock Exchange.



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Selected Financial Information : ($ Millions)
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Statement of Net Assets 2004
--------
Assets $73.7
Liabilities 37.1
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Net Assets (Unitholders Equity) $36.6

Statement of Financial Operations (from inception)
Income $(0.2)
Expenses (1.7)
Special Resolution Expense (0.2)
--------
Net Investment Loss $(2.1)

Net Gain on Investments 5.0
--------
Net Realized Income Before Distributions $2.9
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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Mulvihill Structured Products
    John Mulvihill
    President & CEO
    (416) 681-3966 or (800) 725-7172
    or
    Mulvihill Structured Products
    Bruce Graham
    Vice President
    (416) 681-3966 or (800) 725-7172
    hybrid@mulvihill.com
    www.mulvihill.com
    A member of the Mulvihill Capital Management Inc. Group of Funds