Faircourt Asset Management Inc. has announced:
that in accordance with the terms of the Trust Indenture governing the Preferred Securities and the maintenance of a minimum 1.4 times asset coverage to be maintained by the Trust, dated November 17, 2004, the monthly distribution on the Trust Unit (TSX: FIG.UN) will be suspended until further notice. The Trust’s ability to continue variable distributions, as announced on April 19, 2010, is dependent on market conditions, the results of the annual redemption, and the Trust’s asset coverage levels and would be evaluated by the Manager on a monthly basis.
This announcement does not affect the quarterly distributions related to the Preferred Securities of either Trust (TSX: FIG.PR.A).
Faircourt Income & Growth Split Trust is designed to provide levered exposure to a portfolio comprised of Income Trusts, North American Dividend Paying Equities, as well as other income generating securities.
Acuity Investment Management Inc. is the Investment Advisor for Faircourt Income & Growth Split Trust.
Acuity is best known for holding income trusts in “Acuity Fixed Income Fund”, but the performance of FIG.UN (-15.24% p.a. annualized since inception, vs. a benchmark of +6.96%) is also worthy of note.
FIG.PR.A was last mentioned on PrefBlog when it was announced that warrant exercise in June was minimal. FIG.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.
[…] was last mentioned on PrefBlog when distributions to the Capital Unitholders were suspended. FIG.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index due to credit […]