O’Leary Funds Management LP, the manager and trustee of O’Leary Global Infrastructure Fund (TSX: OGN.un) has announced plans to merge the fund with O’Leary Global Infrastructure Yield Fund, an open-ended mutual fund trust.

The merger, which is subject to regulatory approval, will provide investors with enhanced liquidity and pricing by providing them with the continuous right to redeem their units on a daily basis, according to O’Leary.

The O’Leary Global Infrastructure Yield Fund’s objectives are to generate income and long-term capital growth by investing primarily in common equity and fixed income securities issued by global infrastructure issuers.

As part of the merger, unitholders of the Global Infrastructure Fund would receive series X units of the mutual fund in exchange for their units of the fund. The Series X units pay an annual management fee of up to 1.5%, with an annual rate of trailing commission of up to 0.40%. The mutual fund pays unitholders monthly distributions of $0.06 per series X unit.

Unitholders will be able to switch from their series X units into other series offered by the mutual fund, O’Leary said.

If the merger is approved, O’Leary expects units of the Global Infrastructure Fund to be delisted from the Toronto Stock Exchange as of the end of business on May 4. Once the merger is completed on or about June 1, subscriptions for additional investments and redemptions of the mutual fund will be made via FundSERV.

IE