Brookfield Soundvest Funds Announce Monthly Distributions

Brookfield Soundvest Funds Announce Monthly Distributions

Toronto, December 17, 2010: Brookfield Soundvest Funds today announced monthly distributions for the following funds:

 Fund

Ticker
(TSX)

Distribution
(per unit)

Record Date

Payable Date

Brookfield Soundvest Equity Fund

 BSE.UN

 $0.025

 December 31, 2010

 January 14, 2011

Brookfield Soundvest Split Trust

 BSD.UN

 $nil

 See below

 See below

The monthly distribution on the Capital Units of the Brookfield Soundvest Split Trust (the “Trust”) has been suspended for the current month. The Trust will continue to monitor its net asset value to determine when it will be able to make future distributions on its Capital Units. The quarterly distributions payable on the Trust’s Preferred Securities continue to be unaffected by these announcements.

In addition, and as previously disclosed, the annual redemption rights attributable to the Capital Units and the Combined Securities of the Trust have been temporarily suspended until such time that the Trust is able to maintain a 1.4 times asset coverage ratio. The Trust continues to monitor its net asset value to determine when redemption privileges may be reinstated. When it appears that the Combined Value determined as of a specified redemption date will, after giving effect to the redemptions, be greater than 1.4 times the Repayment Price determined as of that same date, the suspension will be lifted and a specific redemption date will be announced. Such specified redemption date, if announced, would replace the annual redemption provisions of the Trust which are currently suspended.


Commenting on the outlook for 2011, Kevin Charlebois, President and CEO of Brookfield Soundvest Capital Management Ltd., said, “The federal government’s October 31, 2006 decision to tax income trusts fully applies in 2011. In response to this decision, most income trusts have converted to a corporate structure and will pay income taxes and distribute after tax earnings as dividends. A number of these new corporations will lower their monthly distributions to reflect this tax effect and the monthly distributions planned for Brookfield Soundvest Equity Fund (the “Fund”) have been reduced accordingly. Dividends are taxed at a lower effective rate than distributions of regular income by income trusts so the impact will be mitigated for taxable unitholders. We believe this new rate reflects the income generating ability of the Fund’s portfolio and we will closely monitor events in 2011 as the full impact of income trust conversions develops.”


Targeted 2011 Distributions (per unit)

 Fund

Monthly

Annualized

Annualized Yield at Dec. 16, 2010 (Based on targeted 2011 distributions)

Brookfield Soundvest Equity Fund

 $0.02

 $0.24

 4.5%


The new monthly distribution rate will be effective with the January 2011 distribution payable in February 2011.

Brookfield Soundvest Funds give investors access to tax-advantaged distributions while focusing on capital preservation and long-term total return. The manager and investment advisor and portfolio manager for the Funds is Brookfield Soundvest Capital Management Ltd. (the “Manager”), an established investment advisor, providing investment management services to trusts, foundations, corporations and high net worth individuals.

For further information please visit www.brookfieldsoundvest.com, www.brookfieldfunds.com or contact:

Investor Relations
Tel: 888-777-4019
Email: inquiries@brookfieldsoundvest.com

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Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws. The words “may”, “will”, “continue”, “resume”, “targeted” and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release include statements regarding resumption of the temporarily suspended annual redemption privilege in respect of the Trust and payment of future monthly distributions in respect of Capital Units of the Trust. Although the Manager believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward looking statements or information in this news release. The future performance and prospects of the Trust are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of the Trust to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in Canada and elsewhere, changes in legislation including tax laws and regulations and other risks and factors described in the documents filed by the Manager with the securities regulators in Canada including under “Risk Factors” and other risks and factors described in the Trust’s prospectus and the Trust’s most recently filed Management Report of Fund Performance, Annual Information Form and other continuous disclosure documents available at www.sedar.com or www.brookfieldfunds.com. Except as required by law, the Manager undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

© 2017 Brookfield Soundvest Capital Management Ltd.