TORONTO, ONTARIO--(Marketwire - Nov. 9, 2012) - The Board of Directors of United Corporations Limited (TSX:UNC) (TSX:UNC.PR.A) (TSX:UNC.PR.B) (TSX:UNC.PR.C) ("United") announces, after careful consideration, that it plans to reduce United's exposure to Canadian equities and increase its exposure to global equities. Although both of United's external investment managers have a global equities mandate, Canadian equities have constituted approximately 30-35% of United's externally managed assets for many years. While that has served United well as a result of the outperformance of the Canadian equity market and the appreciation of the Canadian dollar, the Board believes that the objective of United, to earn an above-average rate of return through long-term capital appreciation and dividend income, will be better served in the future by investing all of its externally managed assets in global equities and reducing its concentration in Canadian equities.
As a consequence of this decision, approximately $282 million (market value as at September 30, 2012) of Canadian equities will be sold and exposure to global markets will be obtained through the purchase of exchange traded funds until such time as the funds are placed under active management. Following this reallocation, United's exposure to non-Canadian equities will be approximately 95% of United's investments.