Creststreet Mutual Funds Ltd. (CMFL) has terminated the Creststreet Managed Income Fund, a class of shares of CMFL.

Shares will be redeemed on October 24 for an amount equal to the net asset value of the Creststreet Managed Income Fund as determined on that date.

No new purchases of, or switches into, the Creststreet Managed Income Fund will be accepted.

CMFL also reports that it has filed an application with Canadian securities administrators to extend the period the Creststreet Resource Fund, another class of shares of CMFL, has to reduce the amount of private investments held by the fund to below 15% of the net assets of the fund by an additional 90 days from Aug. 20, 2008 to Nov. 18, 2008 as required by applicable securities legislation. There can be no assurance that such extension will be granted.

On May 23, Creststreet Resource Fund exceeded the 15% illiquid security threshold when it increased the mark-to-market valuation on a private company investment held by it based on a verified arm’s length third party transaction. Creststreet says Creststreet Resource Fund has been using reasonable commercial efforts to reduce its investments in private companies but, as of August 20, such investments remain in excess of the 15% limit on illiquid securities in the fund.

As at August 15, illiquid securities comprise 23.7% of the Creststreet Resource Fund’s net assets, of which 18.9% is securities of Athabasca Oil Sands Corp, a private Canadian oil sands development company. Creststreet says Creststreet Resource Fund is confident the illiquid security component of the fund’s portfolio can be reduced below the required 15% threshold within an additional 90 days.

Creststreet Resource Fund invests primarily in companies in the Canadian energy industry with a focus on Canadian natural gas producers, employing a value-oriented “bottom-up” approach with an emphasis on low-cost production, excellent reserve base and potential for exploration success.