Toronto, December 19, 2005 The Manager of Triax Diversified High-Yield Trust (TSX: TRH.UN) announces that at a special meeting of unitholders held earlier today, the unitholders approved the following amendments to the Trust Agreement:
- Extension of the termination date of the Trust from January 1, 2007 to January 1, 2017.
- Removal of percentage limitations on investments in foreign property, investments in rated debt securities having a rating less than the specified ratings and investments in any one industry or type of investment vehicle.
- Revising the investment strategy and investment restrictions concerning Canadian issuers and foreign property.
- Increasing the limit on investments in illiquid investments to 20% of the total assets of the Trust until January 1, 2015 and to 10% of the total assets of the Trust thereafter.
- Permitting the Trust to invest its funds in participations in loans to corporate borrowers offered by banks or other financial institutions, as well as to permit investments in dividend paying equity securities.
- Providing that the Trust only be required to provide Unitholders with such financial statements and other continuous disclosure documents as may be required by law.
- Removal of the requirement that a replacement trustee be a trust corporation incorporated under the laws of Canada or a province thereof, and to approve the appointment of the Manager as replacement trustee of the Trust.
- Addition of a monthly redemption right based on the market price of the Units, and a further redemption right designed to permit Unitholders to redeem their Units at 100% of net asset value from time to time in order to switch to other public investment vehicles sponsored or promoted by the Manager or an affiliate of the Manager. Further, commencing with the quarter ended March 31, 2007, the Trust will pay an amount for each Unit surrendered for quarterly redemptions equal to the net asset value per unit on the redemption date less an amount equal to any costs of funding the redemption, including commissions.
For more information, please call Triax at (416) 362-2929 or 1 (800) 407-0287, or visit www.triaxcapital.com.