Manulife Financial Corporation has announced:
that the Funds’ boards of directors have approved a proposal for each Fund to, among other things, grant securityholders an additional option to allow them to continue their investment in each Fund beyond the currently scheduled termination date of December 2, 2013.
By approving the proposal for each Fund, securityholders will have the opportunity to benefit from a recovering market backdrop. The proposal for each Fund will include, among other things, the following:
- The term of Copernican World Banks Split Inc. and Copernican International Financial Split Corp. may be extended for an additional term of five years. In addition, the termination date of the Funds may be extended further for successive terms of five years thereafter, as determined by the Board; and
- Current redemption rights of the Class A shareholders and Preferred shareholders will remain unchanged and securityholders will be provided with an additional special retraction right providing an option to retract either Preferred shares or Class A shares at the end of the term (and each successive term thereafter) and receive a retraction price that is calculated in the same way that such price would be calculated if the Fund were to terminate on December 2nd, 2013.
A special meeting of securityholders of the Funds has been called and will be held on or about November 15, 2013 to consider and vote upon the proposal for each Fund and any ancillary matters (the “Special Meetings”). Securityholders of record of the Funds at the close of business on or about September 18, 2013 are entitled to receive notice of and vote at the Special Meetings, with respect to their Fund. Further details of the proposal for each Fund will be outlined in a management information circular that will be delivered to securityholders in connection with the Special Meetings.
The proposal for each Fund remains subject to review by the Funds independent review committee.
As of July 31, 2013, CBW had a NAVPU of $4.55 compared to its par value of $10. The latter link also notes:
Pursuant to the terms of the Management Agreement, the Manager is entitled to a fee of 1.95% per annum of the NAV calculated daily and payable monthly plus an amount calculated daily and payable quarterly by the Company equal to the service fee (the “Service Fee”) payable to the registered dealers, plus applicable taxes, including Harmonized Sales Tax. The Manager is responsible for the payment of the Portfolio Advisor’s and the Sub-Advisor’s fees.
…
The Manager calculates and pays to registered dealers whose clients hold Class A Shares a Service Fee calculated daily and payable quarterly in arrears at an annual rate equal to 0.40% annually of the value of the Class A Shares held by clients of the sales representatives of such registered dealers, plus applicable taxes, if any. For these purposes, the value of a Class A Share on any given business day will be the NAV per Unit less $10.00 and less the amount of any accrued and unpaid distributions on a Preferred
Share.
On the other hand, the former link notes:
MER: 2.76%
Expenses can be expensive for a small public fund!
I must, of course, reserve judgement on a voting recommendation until I have seen the proposal. But I cannot imagine anything the company could do to convince a rational investor to vote in favour of their proposal. Other than cut fees to the bone. Ha-ha.
However, at least Manulife is allowing a special retraction this time, so a positive vote can be effectively vetoed by individual holders.
CBW.PR.A is not tracked by HIMIPref™. The last mention of it on PrefBlog occurred when DBRS discontinued the rating in 2009.
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