CALGARY, Dec. 16, 2016 /CNW/ - Global Dividend
Growers Income Fund (the "Fund") announces that a special
distribution will be made to holders of record as at the close of
business on December 31, 2016.
Subject to a final review of the Fund's 2016 taxable income in
early 2017, it is expected that the special distribution will be
approximately $0.30 per unit. This
special distribution is in addition to the regular monthly
distributions of $0.055 per trust
unit. The distribution is expected to consist of (i) a cash
distribution estimated to be $0.10
per unit; and (ii) a distribution estimated to be $0.20 per unit that will be automatically
reinvested in additional units to be determined based on the net
asset value per unit as of December 31,
2016. The estimated amounts may change before year end
depending on transactions that may occur. Immediately following the
issuance, the units of the Fund will be automatically consolidated
such that the number of units will remain unchanged from the number
outstanding immediately prior to the special distribution. The
payment date for the cash distribution will be January 13, 2017.
The special distribution is the result of two factors. First,
the Fund's successful performance, with an annualized total return
of over 13% since its inception in March
2013, has been accompanied by realized capital gains.
Second, the Fund's Declaration of Trust requires that all taxable
income be allocated to unitholders prior to the end of its taxation
year.
A unitholder will be required to include the amount of the
special distribution in income, most of which will be in the form
of capital gains, and the amount of the distribution reinvested in
units will be added to the adjusted cost base of the units held by
such unitholder, thereby reducing taxable gains that may be
realized on future dispositions of the units.
Unitholders are reminded they may elect to automatically
reinvest cash distributions made by the Fund in additional units
through participation in the Fund's Distribution Reinvestment Plan
("DRIP"). Unitholders can enroll in the DRIP program by contacting
their investment advisor or Middlefield.
The Fund's units trade on the Toronto Stock Exchange under
the symbol GDG.UN.
This press release contains forward-looking
information. The forward-looking information contained in this
press release is based on historical information concerning
distributions and dividends paid on the securities of issuers
historically included in the portfolio of the Fund. Actual future
results, including the amount of distributions paid by the Fund,
may differ from the monthly distribution amount. Specifically, the
income from which distributions are paid may vary significantly due
to: changes in portfolio composition; changes in distributions and
dividends paid by issuers of securities included in the Fund's
portfolio from time to time; there being no assurance that those
issuers will pay distributions or dividends on their securities;
the declaration of distributions and dividends by issuers of
securities included in the portfolio will generally depend upon
various factors, including the financial condition of each issuer
and general economic and stock market conditions; the level of
borrowing by the Fund; and the uncertainty of realizing
capital gains. The risks, uncertainties and other factors
that could influence actual results are described under "Risk
Factors" in the Fund's prospectus dated March 12, 2014 and other documents filed by the
Fund with the Canadian securities regulatory authorities.
The forward-looking information contained in this press release
constitutes the Fund's current estimate, as of the date of this
press release, with respect to the matters covered hereby.
Investors and others should not assume that any forward-looking
statement contained in this press release represents the Fund's
estimate as of any date other than the date of this press
release.
SOURCE Global Dividend Growers Income Fund