TORONTO, March 12, 2013 /CNW/ - Middlefield Mutual Funds Limited (the "Mutual Fund") is pleased to announce that it has completed the
rollover of MRF 2011 Resource Limited Partnership (the "Partnership") into the Income Plus Class (MID800) mutual fund.
The Partnership was dissolved on March 12, 2013 and, due to a
challenging resource market over the last several months, terminated
with a net asset value of $10.89 per unit. This resulted in an
after-tax total return on money at risk for the life of the Partnership
of -32.8% for an Ontario investor subject to the highest marginal tax
Partnership investors can determine their Income Plus Class
shareholdings by multiplying the number of units they held in the
Partnership by 0.67884041 Shares of Inco me Plus Class have now been
credited to the accounts of beneficial holders of Partnership units.
The adjusted cost base of the shares of the Income Plus Class
distributed to Partnership investors is $16.33722718 per share. There
are no fees charged on the rollover into the Mutual Fund, nor on
redemptions of Mutual Fund shares.
The objective of Income Plus is to provide a stable level of income
while emphasizing capital preservation. The Fund invests in a
diversified portfolio of fixed-income and dividend paying equity
securities. As at January 31, 2013, Income Plus (MID 800) generated annualized total
returns for the one, three, five and ten year periods of 3.4%, 7.3%,
7.8% and 9.5%, respectively as well as an annualized total return of
9.8% since inception in September 2000. In addition, Income Plus
received the 2012 Lipper Fund Award for the #1 neutral balanced mutual
fund over the three and ten year periods.
The transfer to the Mutual Fund was a tax-free exchange which means that
no disposition occurred and therefore no capital gains tax is payable
as a result of the rollover. Investors can continue to defer the
capital gains tax liability that arises upon disposition of their
investment by retaining the shares of the Mutual Fund, which currently
offers nine asset classes into which they can switch tax-free. These
asset classes provide significant flexibility to suit numerous
investment objectives including income, growth and safety of capital.
In addition to Income Plus, the other classes currently offered are
Groppe Tactical Energy, ActiveIndex REIT, Precious Metals, Canadian
High Yield, Canadian Dividend Growth, Global Agriculture, Uranium
Focused Metals and Short-Term Income. Investors should consult their
advisors to determine the strategy that is most suitable for them for
the achievement of their own personal needs and objectives.
In addition, Middlefield Group is pleased to announce the initial public
offering of MRF 2013 Resource Limited Partnership units. The offering
is being made in each of the provinces and territories of Canada and
intends to close on March 26, 2013.
The indicated returns are annualized compound total returns based on net
asset value for the periods ended January 31, 2013 and are unaudited.
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus
before investing. Mutual funds are not guaranteed, their values change
frequently and past performance may not be repeated.
Certain statements included in this press release constitute
forward-looking statements. The forward-looking statements are not
historical facts but reflect Middlefield's current expectations
regarding future results or events. These forward-looking statements
are subject to a number of risks and uncertainties that could cause
actual results or events to differ materially from current
expectations. Forward-looking statements are not guarantees of future
performance and, accordingly, readers are cautioned not to place undue
reliance on such statements due to the inherent uncertainty therein.
SOURCE: MRF 2011 Resource Limited Partnership