TORONTO, ONTARIO--(Marketwired - April 3, 2013) - Star Portfolio Corp. (TSX:XYM) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
On March 21, 2013, the Minister of Finance announced proposed measures which would affect certain tax benefits of the distributions paid to taxable shareholders of investment funds, such as Star Yield Managers Class (the "Fund"), a class of shares of Star Portfolio Corp., that utilize forward purchase and sale agreements to obtain exposure to an underlying reference portfolio. The Fund is comprised of and/or exposed to three distinct portfolios managed by three Canadian investment managers and their teams: (1) the Dynamic Portfolio, which currently consists of units of the Dynamic Real Estate & Infrastructure Income Fund; (2) the Signature Portfolio, which currently consists of units of the Signature Diversified Yield Fund; and (3) the IA Clarington/Aston Hill Portfolio, which is currently comprised of global high yield securities and other income-producing securities. The latter two portfolios both utilize forward purchase and sale agreements to obtain exposure to an underlying reference portfolio. Based on its review to date, BMO Nesbitt Burns Inc., the administrator of the Fund (the "Administrator"), believes that the Fund and the tax characterization of distributions received by shareholders will be unaffected until the expiration of the forward agreements currently utilized in connection with the Signature Portfolio (which, based on guidance received by the Administrator from the manager of that fund, are scheduled to expire in January 2014 and December 2014, respectively) and the IA Clarington/Aston Hill Portfolio (which is scheduled to expire in October 2015). However, as the tax proposals in the Federal Budget impacting such forward agreements are currently only in draft form and the scope of "grandfathering" provisions in respect of such proposals is uncertain at this time, no assurances can be provided in this regard. The Administrator awaits further guidance from the Federal Government on the implementation of the budget proposals and will provide additional details as soon as it is in a position to do so.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available under Star Portfolio Corp.'s profile from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this news release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Such forward-looking statements reflect the Administrator's current beliefs with respect to future events and are based on information currently available to the Administrator. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may impact the actual results, performance or achievements expressed or implied by such forward-looking statements. The opinions contained in this news release are solely those of the Administrator and are subject to change without notice. The reference information was obtained from publicly available sources, and although the Administrator believes that these independent sources are generally reliable, the accuracy and completeness of such information is not guaranteed and has not been independently verified. The Administrator assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information and expressly disclaim liability for an errors or omissions of this information. The Administrator does not assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances.
Contact Information:
1.866.864.7760