O’Leary Funds Management LP is proposing to merge one of its closed-end funds with an open-ended mutual fund, the company said Friday.

Subject to regulatory and other approvals, O’Leary Global Income Opportunities Fund (TSX: OGO.un) will merge with O’Leary Global Yield Opportunities Fund. The merger is expected to be implemented on August 16.

Unitholders of OGO will exchange their units for units of O’Leary Global Yield Opportunities Fund.

O’Leary Funds believes that the merger will provide OGO 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 of O’Leary Global Yield Opportunities Fund will also be able to switch from their units into other series offered by the fund and into other mutual funds offered by the O’Leary.

The merger will be effected in accordance with the fund’s “permitted merger” provisions, O’Leary Funds says.

OGO investors will not experience any change in the management fee as a result of the merger, O’Leary Funds adds.

After the merger, O’Leary Global Yield Opportunities Fund will distribute $0.60 per year, representing an annual distribution of 6% based on the anticipated $10 per unit issue price, which corresponds to a regular monthly distribution of $0.05 per unit.

More information about the exchange ratio, investment objectives, strategies, fees and expenses will be provided by the O’Leary Funds in the coming weeks.

IE