O’Leary Funds Management LP announced Tuesday that it has obtained regulatory approval to proceed with the merger of O’Leary Global Infrastructure Fund (TSX:OGN.un) with O’Leary Global Infrastructure Yield Fund, which is an open-ended mutual fund.

The fund’s “permitted merger” provisions allow the withdrawal of any redemption election with respect to Class A trust units of the fund submitted by a unitholder during the most recent annual redemption notice period.

The deadline to submit a withdrawal notice in writing is 15:00 ET, Friday, May 7, 2010, O’Leary Funds says. Unitholders who wish to withdraw their redemption election should contact their investment advisor.

The objectives of O’Leary Global Infrastructure Yield Fund are to generate income and long-term capital growth by investing primarily in common equity and fixed income securities issued by global infrastructure issuers. O’Leary Funds notes that the fund is not limited to how much it can invest or keep invested in a country or sector. This will vary according to market conditions.

For the merger, unitholders of the O’Leary Global Infrastructure Fund will receive series X units of the O’Leary Global Infrastructure Yield Fund in exchange. Series X units of O’Leary Global Infrastructure Yield Fund pay an annual management fee of up to 1.5% to the O’Leary Funds (annual rate of trailing commission of up to 0.40%). Similar to the O’Leary Global Infrastructure Fund, the O’Leary Global Infrastructure Yield Fund will pay unitholders monthly distributions of $0.06 per series X unit.

The merger will be implemented on a tax deferred basis, O’Leary Funds says. Units of O’Leary Global Infrastructure Fund are expected to be delisted from the Toronto Stock Exchange at the end of business on May 4.

Once the merger is completed on June 1, subscriptions for additional investments and redemptions of O’Leary Global Infrastructure Yield Fund will be made via FundSERV. Determination by O’Leary Funds of the exchange ratio with reference to NAV per unit of O’Leary Global Infrastructure Fund and NAV per unit of the O’Leary Global Infrastructure Yield Fund will be made as at the close of business on May 31

O’Leary Funds believes that the merger will provide investors with enhanced liquidity and pricing by providing them with the continuous right to redeem their units on a daily basis. Unitholders of O’Leary Global Infrastructure Yeld Fund will also be able to switch from their series X units into other series offered by the fund.

IE