Payout Performers Income Fund Announces Proposal To Merge Into First Asset/BlackRock North American Dividend Achievers Trust
TORONTO, August 1, 2007 - First Asset Funds Inc., the Manager and Trustee of Payout Performers® Income Fund ("PPF") (TSX: PPF.UN), announces its intention to merge PPF into First Asset/BlackRock North American Dividend AchieversTM Trust ("BDA") (TSX: BDA.UN). Upon completion of the planned merger, former unitholders of PPF will become unitholders of BDA.
In addition to sharing similar investment objectives, both trusts currently share a similar investment methodology which is focused on investing in securities of issuers that have a track record of increasing dividends and distributions. Combining the two trusts is an opportunity to create a single larger trust which will increase the on-going liquidity of the units, and also promote improved operational efficiencies and enhanced economical viability for remaining trust. Administrative cost savings will also be realized through eliminating the duplication of certain third party costs associated with operating and administering the trusts. The merger will be completed in accordance with the permitted merger guidelines of the trusts.
Unitholders of PPF who do not wish to become unitholders of BDA may sell their units prior to the merger or avail themselves of their right to redeem their units in August, 2007. The Valuation Date for the redemption is August 30, 2007 and the Cut-Off Date for receipt of redemption requests by PPF is August 16, 2007, although unitholders should consult with their financial advisors as some may have an earlier internal cut-off date. Unitholders of PPF who redeem will receive Net Asset Value per Unit on August 30, 2007, less any expenses associated with the redemption.
The merger will not be effected until shortly after September 24, 2007, and will be subject to obtaining all required regulatory and third party approvals, and the Manager has the authority to delay or terminate the proposed merger if it determines that it would be necessary or desirable to do so. Once all necessary approvals have been obtained, a press release will be issued confirming the effective date of the merger.
First Asset/BlackRock North American Dividend AchieversTM Trust
First Asset/BlackRock North American Dividend AchieversTM Trust's investment objectives are to provide unitholders with monthly cash distributions of 6% per year on the issue price of $10), and to maximize total returns for unitholders. BDA is actively managed by BlackRock Financial Management, Inc. BDA's portfolio consists primarily of common stocks selected from a universe of Canadian and U.S. issuers known as "Dividend AchieversTM" as compiled by Mergent®, Inc., a leading provider of global business and financial information on publicly traded companies. "Dividend AchieversTM" are those companies that have a long track record (10 years in the case of U.S. companies and 5 years for Canadian companies) of consecutively increasing their annual regular cash dividends. No leverage is used in the management of BDA BDA as at July 16, 2007:
Net Asset Value/Unit: $10.28
Current Yield: 6.2%
Performance based on opening NAV, including distributions:
1 month 0.7%
Year to date 4.1%
1 year 18.4%
Since inception 12.6% (compound annual)
For further information, please contact Rob MacNiven, Investor Relations, First Asset Funds Inc. at 416-642-1289 or 1-877-642-1289, or visit www.firstasset.com.
Dividend AchieversTM is a trademark of Mergent, Inc. and has been licensed for use by BDA. The product is not sponsored, endorsed, sold or promoted by Mergent and Mergent makes no representation regarding the advisability of investing in BDA.