O’Leary Funds announces details of proposed mergers

Subject to regulatory approvals, O’Leary Canadian Income Opportunities Fund 2 (TSX: OCH.un) will merge with open-ended mutual fund O’Leary Canadian High Income Fund. The merger has been approved by the Investment Review Committee, and will be effected on December 14, in accordance with the “permitted merger” provisions set out in the declaration of trust of the close-end fund.

O’Leary Funds says the mutual fund’s investment objectives and strategies are similar to those of the closed-end fund. It adds that merger will provide investors with enhanced liquidity and pricing by providing them with the continuous right to subscribe for additional units or redeem units on a daily basis. Unitholders will also be able to switch their units into other series offered by the mutual fund and into other mutual funds offered by O’Leary Funds.

The firm will file amendments to the simplified prospectus and annual information form of the mutual fund in order to create a new series of units (Series Y) that will be exchanged for the trust units of the closed-end fund.

After the merger, the new series of the mutual fund will initially distribute approximately $0.72 per year representing an annual distribution of 7.1% based on a NAV per unit (as at October 9) of $10.05, which corresponds to a regular monthly distribution of $0.06 per unit.

Once all operational steps required to implement the merger are completed, unitholders will be able to redeem their Series Y on a daily basis at their net asset value.

Subject to regulatory approval, the merger will be implemented on a tax-deferred basis

Merger of O’Leary Global Yield Opportunities Fund and O’Leary Strategic Yield Plus Fund

O’Leary Funds says, subject to regulatory approval, O’Leary Global Yield Opportunities Fund (OGO) will merge into O’Leary Strategic Yield Plus Fund (OFS) on December 14.

The Investment Review Committee has approved the merger of the two open-ended mutual funds.

O’Leary Funds says OFS’s investment objectives and strategies are similar to those of OGO.

The firm will file all required amendments to the simplified prospectus and annual information form of OFS in order to create a new series of units (Series X).

In the merger, which will be implemented on a taxable basis, unitholders of OGO will receive corresponding units of OFS, in exchange for their units of OGO. For all series, except for Series X, the exchange will be based on a ratio determined by O’Leary Funds based on the respective net asset value per unit of each fund as at the end of business on the day immediately preceding the date of the merger.

Series X will initially distribute approximately $0.60 per year representing an annual distribution of 6.7% based on a NAV per unit (as at October 10) of $8.91, which corresponds to a regular monthly distribution of $0.05 per unit.