Lawrence Asset Management Inc., the manager of Lawrence Payout Ratio Trust, a TSX-listed, closed-end investment fund, announced that unitholders of the fund approved a proposal to convert the fund into an open-ended mutual fund at special meeting held today.

The conversion was proposed to provide unitholders with enhanced liquidity and improved valuation. Units of the fund will no longer be listed and posted for trading on the TSX as of August 24, but instead will be redeemable at their net asset value on a weekly basis. The first weekly redemption date will be August 31.

The fund will continue its objective to pay unitholders monthly distributions of 5.83¢ per unit and the same low annual management fee of 0.45% will apply.

Upon conversion, the name of the fund will change to Lawrence Income & Growth Fund.

As of the close of business on August 3, units of the fund traded at a discount of approximately 2.11% to their net asset value, however, the historical discount to net asset value has typically been in the 5%-7% range. The NAV of the units on August was $8.26. With the conversion to an open-ended mutual fund approved, investors will be able to redeem units at their net asset value on a weekly basis. In addition, client account statements will begin reporting the net asset value per unit of the fund rather than the market price.

In the future, all existing unitholders will have the opportunity to purchase additional units of the fund at their net asset value on a weekly basis (subject to qualifying such additional units for distribution by simplified prospectus) at the same low annual management fee of 0.45%.

As part of the conversion, unitholders of the fund approved the creation of a new class of units to be offered to new investors (subject to qualifying the units for distribution by simplified prospectus). Similar to the existing class of units, the new class of units is expected to be available for purchases and redemptions on a weekly basis at the net asset value per unit and unitholders will receive monthly distributions. The annual management fee for the new class is expected to be 1%.

Unitholders also approved a broadening of the fund’s investment mandate to permit investments in securities of Canadian income funds, convertible bonds, debentures, high yield debt instruments, listed equity securities, cash and cash equivalents and any other yield-based security or asset class that develops over time.

Lawrence Asset Management Inc. is a performance-oriented investment firm that manages a growing family of alternative investment funds designed to deliver a combination of capital appreciation and yield in a tax efficient manner.