Canadian Closed-End Funds Monitor

Transcription

1 Canadian Closed-End Funds Monitor May 2016 Daniel Arsenault, FRM, CFA Investment Strategy Group Christopher Antony Investment Strategy Group Inside This Issue 2 Canadian Closed-End Fund Updates Aston Hill Asset Management Inc. Aston Hill Advantage Oil & Gas Income Fund Aston Hill Advantage VIP Income Fund 3 CanBanc 8 Income Corp. & Can-Financials Income Corp. Canoe Canadian Diversified Income Fund 4 Canso Credit Income Fund & Canso Select Opportunities Fund 5 Convertible Debentures Income Fund Global Dividend Growers Income Fund NexC Partners Corp. 6 Ridgewood Canadian Investment Grade Bond Fund 7 U.S. Agency Mortgage-Backed REIT Advantaged Fund Canadian Split Share Updates Dividend Growth Split Corp. 9 Exhibits 18 Disclosures & Disclaimers Canadian Closed-End Funds Monitor highlights the key news items released during the previous month for the various Canadian closed-end funds and split-share corporations we monitor. Highlights in the closed-end fund and split-share markets contained in this edition include: Closed-End Funds Aston Hill Asset Management Inc. appoints Manitou Investment Management as exclusive sub-advisor for two additional funds. Aston Hill Advantage Oil & Gas Income Fund has renewed its normal course issuer bid. Aston Hill Advantage VIP Income Fund has renewed its normal course issuer bid. First Asset Management announced that shareholders Can-Financials Income Corp. and CanBanc 8 Income Corp. will each become shareholders of a separate ETF share class of a single mutual fund corporation to be known as First Asset Fund Corp. Canoe Financial LP announced that the merger of Canoe Canadian Diversified Income Fund (formerly O Leary Canadian Diversified Income Fund) into an open-end mutual fund became effective as of the close of business on April 22, Canoe Financial LP announced that the merger of the Convertible Debentures Income Fund into an open-end mutual fund became effective as of the close of business on April 22, Global Dividend Growers Income Fund announced that it has filed a notice with the TSX and received its approval to make a normal course issuer bid. NexC Partners Corp. has received approval for a normal course issuer bid and announced that it has appointed Vladimir Tasevski as Chief Executive Officer and a director of the company. Ridgewood Capital Asset Management Inc. announced that Ridgewood Canadian Investment Grade Bond Fund has completed its previously announced private placement of units. U.S. Agency Mortgage-Backed REIT Advantaged Fund announced the intention to terminate the fund. Split Share Corporations Dividend Growth Split Corp. announced that the company s previously announced treasury offering of class A and preferred shares has been priced at $6.95 per class A share and $10.00 per preferred share. The date shown in advance of each item in this report is the date that the news was announced. All funds are listed on the Toronto Stock Exchange (TSX) and are priced as of April 29, CIBC Wood Gundy is a division of CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Toronto, Canada M5J 2S8 (416)

2 Canadian Closed-End Fund Updates Aston Hill Asset Management Inc. April 29, Appoints Manitou Investment Management As Exclusive Sub-advisor For Two Additional Funds Aston Hill Asset Management Inc. announced it has appointed Manitou Investment Management Ltd. as exclusive sub-advisor to two additional funds. Effective May 1, 2016, Manitou will take over the portfolio management of two closed-end funds; the Aston Hill VIP Income Fund (VIP.UN) and the Aston Hill Advantage VIP Income Fund (AV.UN). Peter Hofstra will act as lead portfolio manager on the new assignments. Mr. Hofstra joined Manitou in 2010 as Managing Director of Investment Management and Research and has twenty years of industry experience. Aston Hill Advantage Oil & Gas Income Fund AOG.UN - $2.69 April 14, 2016 Renews Normal Course Issuer Bid Aston Hill Advantage Oil & Gas Income Fund has renewed its normal course issuer bid to purchase up to 328,044 units of the fund representing approximately 10% of the public float of 3,280,440 units. The fund may purchase up to 65,608 units in any 30 day period which is 2% of the 3,280,440 issued and outstanding units at April 6, As of April 6, 2016, the fund had not purchased any units under its previous normal course issuer bid. The units may be purchased for cancellation from April 18, 2016 to April 17, 2017 through the facilities of the TSX or alternative Canadian trading system and may only be purchased at a price per unit not exceeding the last published NAV per unit. Aston Hill Advantage VIP Income Fund AV.UN - $10.02 April 14, 2016 Renews Normal Course Issuer Bid Aston Hill Advantage VIP Income Fund has renewed its normal course issuer bid to purchase up to 826,462 units of the fund representing approximately 10% of the public float of 8,264,627 units. The fund may purchase up to 165,292 units in any 30 day period which is 2% of the 8,264,627 issued and outstanding units at April 6, As of April 6, 2016, the fund had not purchased any units under its previous normal course issuer bid. The units may be purchased for cancellation from April 18, 2016 to April 17, 2017 through the facilities of the TSX or alternative Canadian trading system and may only be purchased at a price per unit not exceeding the last published NAV per unit. 2 May 2016

3 CanBanc 8 Income Corp. & Can-Financials Income Corp. CBF - $10.18 ; FIC - $7.54 April 5, Update On Fund Amalgamation Transactions Further to its press release dated February 25, 2016, First Asset Investment Management Inc. announced that it has filed a final prospectus dated April 1, 2016 in connection with the pending amalgamations involving First Asset Fund Corp., First Asset Core Fund Corp., Can-Financials Income Corp. and CanBanc 8 Income Corp. First Asset anticipates implementing the amalgamations on or about April 25, 2016, subject to obtaining all necessary regulatory and third party approvals. On the effective date, shareholders of First Asset Core Canadian Equity Income ETF, Can-Financials Income Corp. and CanBanc 8 Income Corp. will each become shareholders of a separate ETF share class of a single mutual fund corporation to be known as First Asset Fund Corp. Each such share class of First Asset Fund Corp. will trade independently under its own TSX ticker symbol, will have its own specific investment objectives and strategies and will be referable to its own separate portfolio of investments as described below. Upon completion of the Amalgamations: 1. First Asset CanBanc Income ETF (CIC) will change its name to First Asset CanBanc Income Class ETF, with its investment objectives, strategies and restrictions unchanged; 2. First Asset Core Canadian Equity Income ETF (CSY) will change its name to First Asset Core Canadian Equity Income Class ETF, with its investment objectives, strategies and restrictions unchanged; 3. Shareholders of CanBanc 8 Income Corp. (CBF) will become shareholders of First Asset CanBanc Income Class ETF (CIC); and 4. Shareholders of Can-Financials Income Corp. (FIC) will become shareholders of First Asset MSCI Canada Quality Index ETF (FQC). This ETF s investment objective will be to replicate, to the extent possible, the performance of the MSCI Canada Quality Index (CAD), net of expenses. The index is based on the MSCI Canada Index, its parent index, which includes large and mid-cap stocks of the Canadian equity market. The index aims to capture the performance of quality growth stocks by identifying stocks with high quality scores based on three main fundamental variables: high ROE, stable year-overyear earnings growth and low financial leverage. In connection with the amalgamations, CanBanc 8 Income Corp. (CBF) will implement a special redemption right. Shareholders who wish to exercise the redemption right must provide notice by no later than 5 p.m. (EST) on April 15, First Asset advises shareholders to inform their advisor or other intermediary in advance of April 15, 2016 of their desire to redeem their shares as their advisor or other intermediary may have an earlier cut-off deadline. Shareholders who redeem their shares of CanBanc 8 Income Corp. will receive the NAV per share of the fund on April 18, The proceeds of the special redemption will be paid on or before April 22, Canoe Canadian Diversified Income Fund ODI.UN - $9.56 April 25, 2016 Announces Completion Of Canoe Canadian Diversified Income Fund Merger Canoe Financial LP announced that the merger of Canoe Canadian Diversified Income Fund (formerly O Leary Canadian Diversified Income Fund) into Canoe Equity Income 3 May 2016

4 Class, an open-end mutual fund managed by Canoe, became effective as of the close of business on April 22, The merger was approved by unitholders at a special meeting held on January 15, The unitholders of the Canoe Diversified Income Fund transferred their units to the continuing fund in exchange for series Z shares of the continuing fund. Pursuant to the merger, each unitholder of the fund received series Z shares of the continuing fund in exchange for each unit of the Canoe Diversified Income Fund. The exchange ratio was determined with reference to the NAV for each of the Canoe Diversified Income Fund and the continuing fund as at the close of business on April 22, The NAV per series Z of the continuing fund as of April 22, 2016 was $ Canso Credit Income Fund & Canso Select Opportunities Fund PBY.UN - $10.17 ; SCW.UN - $8.40 April 12, Announce Approval of Normal Course Issuer Bids Lysander Funds Limited announced that the TSX has approved the notice of intention of each of Canso Credit Income Fund and Canso Select Opportunities Fund to make a normal course issuer bid for their outstanding class A units. Purchases of units pursuant to the normal course issuer bids will be executed through the facilities of the TSX and/or alternative Canadian trading systems at market prices under the normal course issuer bid rules of the TSX. The actual number of units which may be purchased, and the timing of any such purchases, will be determined by the manager. All units purchased under the normal course issuer bids will be cancelled. The normal course issuer bid for each fund shall terminate on the earlier of April 14, 2017 and the date on which such fund has acquired the units sought under the normal course issuer bid. Canso Credit Income Fund Pursuant to its normal course issuer bid notice, Canso Credit Income Fund is entitled to purchase up to 1,984,868 units, representing 10% of its public float, during the twelve month period commencing April 15, 2016 and ending on April 14, As of March 31, 2016, there are 19,848,680 units of Canso Credit Income Fund issued and outstanding and the public float is 19,848,680 units. The fund is permitted to purchase, under the normal course issuer bid, up to 396,973 of its units in a given 30-day period. Canso Credit Income Fund will be purchasing units pursuant to the normal course issuer bid. Although, no purchases were made under the previous normal course issuer bid, the manager intends to purchase units. Canso Select Opportunities Fund Pursuant to its normal course issuer bid notice, Canso Select Opportunities Fund is entitled to purchase up to 822,773 units, representing 10% of its public float, during the twelve month period commencing April 15, 2016 and ending on April 14, As of March 31, 2016 there are currently 8,227,733 units of Canso Select Opportunities Fund issued and outstanding and the public float is 8,227,733 units. The fund is permitted to purchase, under the normal course issuer bid, up to 164,554 of its units in a given 30-day period. Under the previous normal course issuer bid period April 15, 2015 to April 14, 2016 the fund repurchased 192,000 class A units at weighted average price of $ Canso Select Opportunities Fund will be purchasing units pursuant to the normal course issuer bid. 4 May 2016

5 Convertible Debentures Income Fund OCV.UN - Delisted April 25, 2016 Announces Completion of Convertible Debentures Income Fund Merger Canoe Financial LP announced that the merger of the Convertible Debentures Income Fund into Canoe Canadian Asset Allocation Class, an open-end mutual fund managed by Canoe, became effective as of the close of business on April 22, The merger was approved by unitholders at a special meeting held on January 15, The unitholders of the Convertible Debentures Income Fund transferred their units to the continuing fund in exchange for series Z shares of the continuing fund. Pursuant to the merger, each unitholder of the fund received series Z shares of the continuing fund in exchange for each unit of the Convertible Debentures Income Fund. The exchange ratio was determined with reference to the NAV for each of the Convertible Debentures Income Fund and the continuing fund as at the close of business on April 22, The NAV per series Z of the continuing fund as of April 22, 2016 was $ Global Dividend Growers Income Fund GDG.UN - $10.60 April 20, 2016 Announces Normal Course Issuer Bid Global Dividend Growers Income Fund announced that it has filed a notice with the TSX and received its approval to make a normal course issuer bid for its units through the facilities of the TSX. This normal course issuer bid will commence on April 23, 2016 and will terminate on April 22, In accordance with the declaration of trust by which the fund is governed, market purchases pursuant to its normal course issuer bid may be effected by the fund. The fund had 9,612,986 units issued and outstanding as at April 12, The fund may, during the 12 month period commencing April 23, 2016 purchase on the TSX up to 961,048 units, being 10% of the public float and may not, in any 30 day period, purchase more than 192,259 units, being 2% of the units issued and outstanding. The fund will hold in treasury for resale all units purchased pursuant to the bid. As at April 12, 2016 the fund had purchased 131,100 units at an average price of $11.86 per unit under its previously approved normal course issuer bid. NexC Partners Corp. NXC - $10.91 April 15, Receives Approval for Normal Course Issuer Bid NexC Partners Corp. has received approval for a normal course issuer bid to purchase up to 206,794 class A shares of the company, representing approximately 10% of the public float of 2,067,942 shares as of April 6, The company may purchase up to 41,369 shares in any 30 day period which is 2% of the 2,068,467 issued and outstanding shares at April 6, The shares may be purchased for cancellation from April 19, 2016 to April 18, 2017 through the facilities of the TSX or other alternative Canadian trading systems and may only be purchased at a price per share not exceeding the last published NAV per share. On April 6, 2015, the company announced that it was making a normal course issuer bid, which commenced April 8, 2015, to purchase up to 274,788 shares through the facilities of the TSX or other eligible alternative markets. The company repurchased 5 May 2016

6 183,000 shares at a weighted average price of $10.45 per share under the bid, which expired on April 7, April 18, Announces a Change to its Board of Directors The board of directors of NexC Partners Corp. announced that it has appointed Vladimir Tasevski as Chief Executive Officer and a director of the company. As a senior executive with Purpose Investments Inc., the manager of the company, Mr. Tasevski brings considerable experience and expertise to the company s board. In connection with the appointment of Mr. Tasevski to the board, Som Seif, founder, President, Chief Executive Officer and Chairman of the Board of Directors of Purpose, will step aside as a director and officer of NexC in order to continue to devote his time and energy to Purpose. There will be no changes to NexC s investment objectives and strategies and Breton Hill Capital Ltd. will continue in its capacity as an investment advisor to the company. Mr. Tasevski has held progressively responsible positions with Purpose since the company s establishment in Prior thereto he served as Vice President at BlackRock Investments Inc. (Toronto) which he joined following the acquisition of Claymore Investments, Inc. in March, At Claymore Investments, Inc. Mr. Tasevski spent 5 years in a generalist role where he gained broad experience in the areas of product development, operations and sales. He is a CFA charterholder and has a Bachelor of Commerce degree from the University of Toronto. Ridgewood Canadian Investment Grade Bond Fund RIB.UN - $14.25 April 15, Announces Private Placement Ridgewood Capital Asset Management Inc. announced that Ridgewood Canadian Investment Grade Bond Fund is undertaking a non-brokered private placement of 556,180 units of the fund at a price of $13.35 per unit, for gross proceeds of approximately $7.425 million. The offering price of the units is not dilutive to existing unitholders of the fund. Closing of the offering is expected to take place on or about April 21, The net proceeds of the offering will be used in furtherance of the fund s investment objectives, strategies and guidelines. The units sold pursuant to the offering will be subject to resale restrictions under applicable securities laws. The offering is subject to the approval of the TSX. April 8, 2016 Ridgewood Capital Asset Management Inc. Acquires Control Of Units Of Ridgewood Canadian Investment Grade Bond Fund Ridgewood Capital Asset Management Inc. announced that it acquired control over 452,778 trust units of Ridgewood Canadian Investment Grade Bond Fund pursuant to a series of transactions effected between December 30, 2015 and March 31, 2016, in its capacity as portfolio manager to certain managed accounts. The units over which control was acquired pursuant to the transactions represented approximately 7.6% of the units then outstanding. Immediately following the transactions, Ridgewood controlled on behalf of its managed accounts 1,306,576 units of the fund, which represented approximately 21.9% of the units then outstanding. Pursuant to the transactions, Ridgewood caused the managed accounts to acquire units for investment purposes. Depending on market conditions and other 6 May 2016

7 factors, Ridgewood expects that it may from time to time acquire additional units for its managed accounts or dispose of units held by its managed accounts, in each case for investment purposes only. Certain of the transactions were effected on the TSX at prevailing market prices and certain of the transactions were effected privately at prices per unit equal to the NAV per unit as at the applicable time. April 21, Completes Private Placement of Units Ridgewood Capital Asset Management Inc. announced that Ridgewood Canadian Investment Grade Bond Fund has completed its previously announced private placement of 556,180 units of the fund at a price of $13.35 per unit for gross proceeds of approximately $7.425 million. The offering has been conditionally approved by the TSX, subject to the satisfaction of the conditions of the TSX. U.S. Agency Mortgage-Backed REIT Advantaged Fund USM.UN - $5.00 April 28, Announces Termination Of Fund Aston Hill Capital Markets Inc., as manager of the U.S. Agency Mortgage-Backed REIT Advantaged Fund, announced the intention to terminate the fund. The decision was made to terminate the fund following receipt of the most recent annual redemption requests. As a result of redemptions, the net asset size of the fund has been reduced to a level below which, in the opinion of the manager, it is no longer economically feasible to continue the fund and it would be in the best interest of the unitholders to terminate the fund. The manager anticipates that the fund's termination will occur on or about June 30, The fund will distribute in cash the net assets of the fund to unitholders on a pro rata basis based on the NAV per unit on or about the termination date. Payment is expected to be made as soon as practicable following the termination date. Unitholders need not take any action to receive the payment. Unitholder redemption rights are not affected by the termination of the fund. Unitholders who properly surrendered units for redemption on or before March 31, 2016 will be paid the annual redemption amount (to be determined on April 28, 2016) on or about May 13, Canadian Split Share Updates Dividend Growth Split Corp. DGS - $6.80 DGS.PR.A - $5.60 April 26, 2016 Announces Treasury Offering Dividend Growth Split Corp. announced it has filed a preliminary short form base shelf prospectus, and is undertaking a treasury offering of class A and preferred shares. The final class A and preferred share offering prices will be determined so as to be nondilutive to the NAV per unit of the company as of the pricing date, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering. 7 May 2016

8 The company invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Currently, the portfolio consists of common shares of the following 20 companies: Great-West Lifeco Bank of Nova Scotia CI Financial Shaw Communications Industrial Alliance Insurance and Financial Services CIBC IGM Financial TELUS Manulife Financial National Bank of Canada Power Corporation of Canada Canadian Utilities Sun Life Financial Royal Bank of Canada BCE Enbridge Bank of Montreal Toronto-Dominion Bank Rogers Communications TransCanada Corporation The investment objectives for the class A shares are to provide holders with regular monthly cash distributions targeted to be $0.10 per class A share and to provide the opportunity for growth in the NAV per class A share. The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of $ per preferred share, representing a yield on the original issue price of 5.25% per annum, and to return the original issue price to holders of preferred shares on the company s maturity date (November 28, 2019). The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC and Scotiabank. April 28, 2016 Announces Pricing And Sixing Of Treasury Offering Dividend Growth Split Corp. announced that the company s treasury offering of class A and preferred shares has been priced at $6.95 per class A share and $10.00 per preferred share. The final class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated NAV per unit of the company, as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering, and voluntary payment of certain costs of the offering by the manager. Gross proceeds of the offering are expected to be approximately $23 million. The company invests in a portfolio of common shares of high quality, large capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. The company intends to file a final short form base shelf prospectus along with a prospectus supplement to such final short form base shelf prospectus in each of the provinces and territories of Canada in connection with the offering. The offering is expected to close on or about May 6, 2016 and is subject to customary closing conditions including approvals of applicable securities regulatory authorities and the TSX. The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC and Scotiabank and includes TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation. 8 May 2016

9 Exhibit 1. Canadian Closed-End Fund Universe Sorted Alphabetically Issue Symbol NAV Date NAV Market Price1 Premium (Discount) to NAV1 Indicated Yield (%) Market Cap ($MM) Aberdeen Asia-Pacific Income Investment Co Ltd FAP 04/29/ % ACTIVEnergy Income Fund AEU.UN 04/28/ % Advantaged Canadian High Yield Bond Fund AHY.UN 04/29/ % Advantaged Preferred Share Trust PFR.UN 04/27/ % American Core Sectors Dividend Fund ACZ.UN 04/29/ % Aston Hill Advantage Bond Fund MBB.UN 04/28/ % Aston Hill Advantage Oil & Gas Income Fund AOG.UN 04/28/ % Aston Hill Advantage VIP Income Fund AV.UN 04/28/ % Aston Hill VIP Income Fund VIP.UN 04/28/ % Australian Banc Income Fund AUI.UN 04/29/ % Australian REIT Income Fund HRR.UN 04/29/ % Bloom Select Income Fund BLB.UN 04/28/ % Bloom US Income & Growth Fund BUA.UN 04/29/ % Blue Ribbon Income Fund RBN.UN 04/28/ % Brand Leaders Income Fund HBL.UN 04/29/ % Brand Leaders Plus Income Fund HBF.UN 04/29/ % Brookfield High Yield Strategic Income Fund BHY.UN 04/29/ % Brookfield Global Infrastructure Securities Income Fund BGI.UN 04/29/ % Brookfield Select Opportunities Income Fund BSO.UN 04/29/ % Brookfield Soundvest Equity Fund BSE.UN 04/29/ % Caldwell US Dividend Advantage Fund UDA.UN 04/29/ % Canadian 50 Advantaged Preferred Share Fund CPF.UN 04/29/ % First Asset Canadian Convertibles Fund ADC.UN 04/29/ % Canadian Convertibles Plus Fund CCI.UN 04/29/ % Canadian General Investments Ltd CGI 04/29/ % Canadian High Income Equity Fund CIQ.UN 04/28/ % Canadian High Yield Focus Fund CAH.UN 04/29/ % Canadian Preferred Share Trust PFT.UN 04/29/ % Canadian Resources Income Trust RTU.UN 04/29/ % Canadian Utilities & Telecom Income Fund UTE.UN 04/29/ % Canadian World Fund Ltd CWF 04/29/ % CanBanc 8 Income Corp CBF 04/29/ % - - Can-Financials Income Corp FIC 04/29/ % - - Canoe EIT Income Fund EIT.UN 04/29/ % Canso Select Opportunities Fund SCW.UN 04/29/ % Canso Credit Income Fund PBY.UN 04/29/ % Central Fund of Canada Ltd CEF/A 04/29/ % Citadel Income Fund CTF.UN 04/29/ % COMPASS Income Fund/Canada CMZ.UN 04/28/ % Core Canadian Dividend Trust CDD.UN 04/29/ % Coxe Commodity Strategy Fund COX.UN 04/29/ % Coxe Global Agribusiness Income Fund CAG.UN 04/29/ % Cymbria Corp CYB 04/29/ % DDJ High Yield Fund HYB.UN 04/29/ % Dividend Select 15 Corp DS 04/29/ % DoubleLine Income Solutions Trust DSL.UN 04/29/ % East Coast Investment Grade Income Fund ECF.UN 04/28/ % Economic Investment Trust Ltd EVT 04/28/ % Eclipse Residential Mortgage Investment Corp ERM 04/28/ % Energy Credit Opportunities Income Fund PCF.UN 04/29/ % May 2016

10 Exhibit 1. Canadian Closed-End Fund Universe Sorted Alphabetically Issue Symbol NAV Date NAV Market Price1 Premium (Discount) to NAV1 Indicated Yield (%) Market Cap ($MM) Energy Income Fund ENI.UN 04/28/ % Energy Leaders Income Fund HEN.UN 04/29/ % Energy Leaders Plus Income Fund HPF.UN 04/29/ % Europe Blue-Chip Dividend & Growth Fund EBC.UN 04/29/ % European Strategic Balanced Fund EBF.UN 04/29/ % Faircourt Gold Income Corp FGX 04/29/ % First Asset Diversified Convertible Debenture Fund DCD.UN 04/29/ % First Asset Energy & Resource Fund TRF.UN 04/29/ % First Asset Advantaged Morningstar U.S. Consumer Defensive Index UCD.UN 04/29/ % First National Mortgage Investment Fund FNM.UN 04/29/ % First Trust Global DividendSeeker Fund FDS.UN 04/29/ % Flaherty & Crumrine Investment Grade Fixed Income Fund FFI.UN 04/29/ % Floating Rate Income Fund OFR.UN 04/29/ % Global Advantaged Telecom & Utilities Income Fund HGI.UN 04/29/ % Global Diversified Investment Grade Income Trust II GII.UN 04/29/ % Global Dividend Growers Income Fund GDG.UN 04/29/ % Global Healthcare Dividend Fund GHC.UN 04/29/ % Global Infrastructure Dividend Fund GIF.UN 04/29/ % Global Real Estate Dividend Growers Corp GRL 04/29/ % Global Water Solutions Fund HTO.UN 04/29/ % Goldman Sachs U.S. Income Builder Trust GSB.UN 04/29/ % Goodman Gold Trust GGT.UN 04/29/ % Healthcare Leaders Income Fund HHL.UN 04/29/ % Healthcare Special Opportunities Fund MDS.UN 04/26/ % High Rock Canadian High Yield Bond Fund HHY.UN 04/29/ % Income Financial Trust INC.UN 04/29/ % Indexplus Income Fund IDX.UN 04/28/ % Voya Diversified Floating Rate Senior Loan Fund IFL.UN 04/29/ % Voya Floating Rate Senior Loan Fund ISL.UN 04/29/ % Voya High Income Floating Rate Fund IHL.UN 04/29/ % Investment Grade Infrastructure Bond Fund IFB.UN 04/29/ % JFT Strategies Fund JFS.UN 04/29/ % Limited Duration Investment Grade Preferred Securities Fund PFD.UN 04/29/ % Low Volatility Canadian Equities Income Fund LOW.UN 04/29/ % Low Volatility US Equity Income Fund LVU.UN 04/29/ % Macquarie Emerging Markets Infrastructure Income Fund MQA.UN 04/29/ % Macquarie Global Infrastructure Income Fund MQI.UN 04/29/ % Manulife Floating Rate Senior Loan Fund MFR.UN 04/29/ % Manulife US Regional Bank Trust MBK.UN 04/29/ % Marquest Canadian Equity Income Fund MIF.UN 04/29/ % Marret High Yield Strategies Fund MHY.UN 04/28/ % Marret Investment Grade Bond Fund MIG.UN 04/28/ % Marret Multi-Strategy Income Fund MMF.UN 04/29/ % MBN Corp MBN 04/28/ % Middlefield Can-Global REIT Income Fund RCO.UN 04/29/ % MINT Income Fund MID.UN 04/28/ % Moneda LatAm Growth Fund MLE.UN 04/29/ % Moneda LatAm Fixed Income Fund MLF.UN 04/29/ % NDX Growth & Income Fund NGI.UN 04/29/ % NexC Partners Corp NXC 04/29/ % May 2016

11 Exhibit 1. Canadian Closed-End Fund Universe Sorted Alphabetically Issue Symbol NAV Date NAV Market Price1 Premium (Discount) to NAV1 Indicated Yield (%) Market Cap ($MM) First Asset North American Convertibles Fund NCD.UN 04/29/ % Global Capital Securities Trust NAF.UN 04/29/ % North American Preferred Share Fund NPF.UN 04/29/ % North American REIT Income Fund NRF.UN 04/29/ % OCP Credit Strategy Fund OCS.UN 04/29/ % OCP Senior Credit Fund OSL.UN 04/29/ % Oil Sands Sector Fund OSF.UN 04/28/ % Canoe Canadian Diversified Income Fund ODI.UN 04/19/ % - - Canoe U.S. Strategic Yield Advantaged Fund OUY.UN 04/29/ % Pathfinder Income Fund PCD.UN 04/29/ % Picton Mahoney Tactical Income Fund PMB.UN 04/28/ % PIMCO Global Income Opportunities Fund PGI.UN 04/29/ % PineBridge Investment Grade Preferred Securities Fund PRF.UN 04/29/ % Precious Metals & Mining Trust MMP.UN 04/28/ % Precious Metals Bullion Trust PBU.UN 04/29/ % Preferred Share Investment Trust PSF.UN 04/29/ % Ravensource Fund RAV.UN 04/21/ % Real Asset Income and Growth Fund RAI.UN 04/29/ % REIT INDEXPLUS Income Fund IDR.UN 04/29/ % Ridgewood Canadian Investment Grade Bond Fund RIB.UN 04/28/ % SCITI Trust SIN.UN 04/29/ % Senior Secured Floating Rate Loan Fund FRL.UN 04/29/ % Sentry Select Primary Metals Corp PME 04/28/ % Skylon Growth & Income Trust SKG.UN 04/29/ % Sprott Physical Gold Trust PHY/U 04/29/ % Sprott Physical Silver Trust PHS/U 04/29/ % Star Portfolio Corp XYM.UN 04/29/ % Strategic Income Allocation Fund SIF.UN 04/29/ % Symphony Floating Rate Senior Loan Fund SSF.UN 04/29/ % Taylor North American Equity Opportunities Fund TOF.UN 04/29/ % Tech Achievers Growth & Income Fund HTA.UN 04/29/ % Tech Leaders Income Fund TLF.UN 04/29/ % Timbercreek Global Real Estate Fund TGF.UN 04/29/ % Top 10 Canadian Financial Trust TCT.UN 04/29/ % Top 20 Dividend Trust TTY.UN 04/29/ % Top 20 Europe Dividend Trust TTE.UN 04/29/ % Top 20 US Dividend Trust TUT.UN 04/29/ % Triax Diversified High-Yield Trust TRH.UN 04/29/ % Trident Performance Corp TCP 04/29/ % Trident Performance Corp II TCZ 04/29/ % United Corporations Ltd UNC 04/28/ % US Agency Mortgage-Backed REIT Advantaged Fund USM.UN 04/29/ % US Buyback Leaders Fund HUL.UN 04/29/ % US Dividend Growers Income Corp US 04/29/ % US Housing Recovery Fund USH.UN 04/29/ % US Financials Income Fund USF.UN 04/29/ % Utility Corp UTC/C 04/29/ % Voya Global Income Solutions Fund VGI.UN 04/29/ % YIELDPLUS Income Fund YP.UN 04/28/ % Average -6.48% 11 May 2016

12 Notes: 1. Market price is the last traded price as of close on the NAV date -- denotes that the output was not meaningful Net Asset Value = Net Asset Value per share Source: Company Reports, Bloomberg 12 May 2016

13 Exhibit 2. Canadian Closed-End Fund Universe Sorted By Discount To Net Asset Value Issue Symbol NAV Date NAV Market Price1 Premium (Discount) to NAV1 Indicated Yield (%) Market Cap ($MM) Marret High Yield Strategies Fund MHY.UN 04/28/ % Marret Multi-Strategy Income Fund MMF.UN 04/29/ % Global Diversified Investment Grade Income Trust II GII.UN 04/29/ % Canadian World Fund Ltd CWF 04/29/ % MBN Corp MBN 04/28/ % Canadian General Investments Ltd CGI 04/29/ % Citadel Income Fund CTF.UN 04/29/ % Economic Investment Trust Ltd EVT 04/28/ % Energy Income Fund ENI.UN 04/28/ % United Corporations Ltd UNC 04/28/ % Canoe EIT Income Fund EIT.UN 04/29/ % US Agency Mortgage-Backed REIT Advantaged Fund USM.UN 04/29/ % Canadian High Yield Focus Fund CAH.UN 04/29/ % Core Canadian Dividend Trust CDD.UN 04/29/ % Caldwell US Dividend Advantage Fund UDA.UN 04/29/ % Energy Credit Opportunities Income Fund PCF.UN 04/29/ % Faircourt Gold Income Corp FGX 04/29/ % Coxe Commodity Strategy Fund COX.UN 04/29/ % First Asset Energy & Resource Fund TRF.UN 04/29/ % Moneda LatAm Growth Fund MLE.UN 04/29/ % Healthcare Special Opportunities Fund MDS.UN 04/26/ % DDJ High Yield Fund HYB.UN 04/29/ % Trident Performance Corp TCP 04/29/ % Star Portfolio Corp XYM.UN 04/29/ % Trident Performance Corp II TCZ 04/29/ % Energy Leaders Income Fund HEN.UN 04/29/ % Picton Mahoney Tactical Income Fund PMB.UN 04/28/ % Advantaged Canadian High Yield Bond Fund AHY.UN 04/29/ % Manulife US Regional Bank Trust MBK.UN 04/29/ % Aberdeen Asia-Pacific Income Investment Co Ltd FAP 04/29/ % High Rock Canadian High Yield Bond Fund HHY.UN 04/29/ % European Strategic Balanced Fund EBF.UN 04/29/ % Moneda LatAm Fixed Income Fund MLF.UN 04/29/ % First National Mortgage Investment Fund FNM.UN 04/29/ % Global Capital Securities Trust NAF.UN 04/29/ % First Asset North American Convertibles Fund NCD.UN 04/29/ % NDX Growth & Income Fund NGI.UN 04/29/ % Real Asset Income and Growth Fund RAI.UN 04/29/ % Central Fund of Canada Ltd CEF/A 04/29/ % Macquarie Emerging Markets Infrastructure Income Fund MQA.UN 04/29/ % Taylor North American Equity Opportunities Fund TOF.UN 04/29/ % Voya High Income Floating Rate Fund IHL.UN 04/29/ % Pathfinder Income Fund PCD.UN 04/29/ % Australian REIT Income Fund HRR.UN 04/29/ % Limited Duration Investment Grade Preferred Securities Fund PFD.UN 04/29/ % Brookfield Soundvest Equity Fund BSE.UN 04/29/ % Bloom Select Income Fund BLB.UN 04/28/ % NexC Partners Corp NXC 04/29/ % Precious Metals & Mining Trust MMP.UN 04/28/ % Tech Achievers Growth & Income Fund HTA.UN 04/29/ % May 2016

14 Exhibit 2. Canadian Closed-End Fund Universe Sorted By Discount To Net Asset Value Issue Symbol NAV Date NAV Market Price1 Premium (Discount) to NAV1 Indicated Yield (%) Market Cap ($MM) Preferred Share Investment Trust PSF.UN 04/29/ % OCP Senior Credit Fund OSL.UN 04/29/ % Aston Hill Advantage Oil & Gas Income Fund AOG.UN 04/28/ % OCP Credit Strategy Fund OCS.UN 04/29/ % Voya Floating Rate Senior Loan Fund ISL.UN 04/29/ % Skylon Growth & Income Trust SKG.UN 04/29/ % Brookfield Global Infrastructure Securities Income Fund BGI.UN 04/29/ % Top 20 Europe Dividend Trust TTE.UN 04/29/ % North American Preferred Share Fund NPF.UN 04/29/ % Canso Select Opportunities Fund SCW.UN 04/29/ % Blue Ribbon Income Fund RBN.UN 04/28/ % Marquest Canadian Equity Income Fund MIF.UN 04/29/ % Voya Global Income Solutions Fund VGI.UN 04/29/ % SCITI Trust SIN.UN 04/29/ % Canadian 50 Advantaged Preferred Share Fund CPF.UN 04/29/ % Brand Leaders Income Fund HBL.UN 04/29/ % Strategic Income Allocation Fund SIF.UN 04/29/ % Eclipse Residential Mortgage Investment Corp ERM 04/28/ % Top 20 Dividend Trust TTY.UN 04/29/ % East Coast Investment Grade Income Fund ECF.UN 04/28/ % Global Healthcare Dividend Fund GHC.UN 04/29/ % Precious Metals Bullion Trust PBU.UN 04/29/ % Investment Grade Infrastructure Bond Fund IFB.UN 04/29/ % Canoe U.S. Strategic Yield Advantaged Fund OUY.UN 04/29/ % Top 10 Canadian Financial Trust TCT.UN 04/29/ % Canadian Convertibles Plus Fund CCI.UN 04/29/ % US Financials Income Fund USF.UN 04/29/ % First Asset Advantaged Morningstar U.S. Consumer Defensive Index UCD.UN 04/29/ % Europe Blue-Chip Dividend & Growth Fund EBC.UN 04/29/ % PineBridge Investment Grade Preferred Securities Fund PRF.UN 04/29/ % Manulife Floating Rate Senior Loan Fund MFR.UN 04/29/ % Dividend Select 15 Corp DS 04/29/ % Canadian Resources Income Trust RTU.UN 04/29/ % Goldman Sachs U.S. Income Builder Trust GSB.UN 04/29/ % Low Volatility US Equity Income Fund LVU.UN 04/29/ % Canso Credit Income Fund PBY.UN 04/29/ % PIMCO Global Income Opportunities Fund PGI.UN 04/29/ % REIT INDEXPLUS Income Fund IDR.UN 04/29/ % Indexplus Income Fund IDX.UN 04/28/ % Floating Rate Income Fund OFR.UN 04/29/ % Middlefield Can-Global REIT Income Fund RCO.UN 04/29/ % Ravensource Fund RAV.UN 04/21/ % Senior Secured Floating Rate Loan Fund FRL.UN 04/29/ % First Asset Canadian Convertibles Fund ADC.UN 04/29/ % Brookfield Select Opportunities Income Fund BSO.UN 04/29/ % Canadian Preferred Share Trust PFT.UN 04/29/ % MINT Income Fund MID.UN 04/28/ % US Buyback Leaders Fund HUL.UN 04/29/ % Aston Hill Advantage VIP Income Fund AV.UN 04/28/ % ACTIVEnergy Income Fund AEU.UN 04/28/ % May 2016

15 Exhibit 2. Canadian Closed-End Fund Universe Sorted By Discount To Net Asset Value Issue Symbol NAV Date NAV Market Price1 Premium (Discount) to NAV1 Indicated Yield (%) Market Cap ($MM) Oil Sands Sector Fund OSF.UN 04/28/ % Global Real Estate Dividend Growers Corp GRL 04/29/ % Top 20 US Dividend Trust TUT.UN 04/29/ % Voya Diversified Floating Rate Senior Loan Fund IFL.UN 04/29/ % COMPASS Income Fund/Canada CMZ.UN 04/28/ % Global Dividend Growers Income Fund GDG.UN 04/29/ % Brookfield High Yield Strategic Income Fund BHY.UN 04/29/ % Aston Hill VIP Income Fund VIP.UN 04/28/ % Symphony Floating Rate Senior Loan Fund SSF.UN 04/29/ % Bloom US Income & Growth Fund BUA.UN 04/29/ % YIELDPLUS Income Fund YP.UN 04/28/ % Australian Banc Income Fund AUI.UN 04/29/ % Macquarie Global Infrastructure Income Fund MQI.UN 04/29/ % Canadian High Income Equity Fund CIQ.UN 04/28/ % Global Water Solutions Fund HTO.UN 04/29/ % Global Infrastructure Dividend Fund GIF.UN 04/29/ % Low Volatility Canadian Equities Income Fund LOW.UN 04/29/ % Tech Leaders Income Fund TLF.UN 04/29/ % DoubleLine Income Solutions Trust DSL.UN 04/29/ % North American REIT Income Fund NRF.UN 04/29/ % American Core Sectors Dividend Fund ACZ.UN 04/29/ % Canadian Utilities & Telecom Income Fund UTE.UN 04/29/ % Goodman Gold Trust GGT.UN 04/29/ % Marret Investment Grade Bond Fund MIG.UN 04/28/ % US Housing Recovery Fund USH.UN 04/29/ % Advantaged Preferred Share Trust PFR.UN 04/27/ % First Asset Diversified Convertible Debenture Fund DCD.UN 04/29/ % Coxe Global Agribusiness Income Fund CAG.UN 04/29/ % Can-Financials Income Corp FIC 04/29/ % - - CanBanc 8 Income Corp CBF 04/29/ % - - Global Advantaged Telecom & Utilities Income Fund HGI.UN 04/29/ % Canoe Canadian Diversified Income Fund ODI.UN 04/19/ % - - First Trust Global DividendSeeker Fund FDS.UN 04/29/ % Healthcare Leaders Income Fund HHL.UN 04/29/ % US Dividend Growers Income Corp US 04/29/ % Sentry Select Primary Metals Corp PME 04/28/ % Aston Hill Advantage Bond Fund MBB.UN 04/28/ % Triax Diversified High-Yield Trust TRH.UN 04/29/ % Timbercreek Global Real Estate Fund TGF.UN 04/29/ % Sprott Physical Silver Trust PHS/U 04/29/ % Cymbria Corp CYB 04/29/ % Brand Leaders Plus Income Fund HBF.UN 04/29/ % Sprott Physical Gold Trust PHY/U 04/29/ % Flaherty & Crumrine Investment Grade Fixed Income Fund FFI.UN 04/29/ % Energy Leaders Plus Income Fund HPF.UN 04/29/ % Utility Corp UTC/C 04/29/ % JFT Strategies Fund JFS.UN 04/29/ % Ridgewood Canadian Investment Grade Bond Fund RIB.UN 04/28/ % Income Financial Trust INC.UN 04/29/ % Average -6.48% 15 May 2016

16 Notes: 1. Market price is the last traded price as of close on the NAV date -- denotes that the output was not meaningful Net Asset Value = Net Asset Value per share Source: Company Reports, Bloomberg 16 May 2016

17 Exhibit 3. Capital Share Leverage Evaluation Sorted Alphabetically Issue Capital Share Symbol NAV Date Unit NAV Preferred Par Value Capital Shares Intrinsic NAV Capital Shares MV (As at NAV Date) Capital Shares' Premium (Discount) Intrinsic Value Change for Capital Shares for Each 1% Change in NAV Indicated Yield (%) Market Cap ($MM) 5Banc Split Inc FBS/B 04/28/ % 1.41% Allbanc Split Corp ABK/A 04/29/ % 1.57% Allbanc Split Corp II ALB 04/29/ % 3.12% Big 8 Split Inc BIG/D 04/28/ % 1.73% Big Bank Big Oil Split Corp BBO 04/29/ % 2.63% BNS Split Corp II BSC 04/29/ % 3.02% Brompton Lifeco Split Corp LCS 04/28/ % 3.04% Brompton Oil Split Corp OSP 04/29/ % 2.10% Brompton Split Banc Corp SBC 04/28/ % 1.77% Brookfield Soundvest Split Trust BSD 04/29/ % 7.99% Canadian Banc Corp BK 04/29/ % 1.87% Canadian Life Cos Split Corp LFE 04/29/ % 3.48% Commerce Split Corp YCM 04/29/ % 8.30% Dividend 15 Split Corp DFN 04/29/ % 2.19% Dividend 15 Split Corp II DF 04/29/ % 2.93% Dividend Growth Split Corp DGS 04/28/ % 2.59% Faircourt Split Trust FCS 04/29/ % 2.94% Financial 15 Split Corp FTN 04/29/ % 2.80% North American Financial 15 Split FFN 04/29/ % 3.00% Life & Banc Split Corp LBS 04/28/ % 2.29% M Split Corp XMF/A NewGrowth Corp NEW/A 04/29/ % 1.39% Premium Income Corp PIC/A 04/29/ % 3.59% Prime Dividend Corp PDV 04/29/ % 2.59% R Split III Corp RBS 04/29/ % 1.71% S Split Corp SBN 04/29/ % 2.40% TDb Split Corp XTD 04/29/ % 3.48% Top 10 Split Trust TXT 04/29/ % 4.64% US Financial 15 Split Corp FTU Utility Split Trust UST 04/29/ % 1.60% World Financial Split Corp WFS 04/29/ % 4.62% Notes: 1. The par value may be more or less than the current market value of the issue -- denotes that the output was not meaningful Net Asset Value = Net Asset Value per share Source: Company Reports, Bloomberg 17 May 2016

18 Disclosures and Disclaimers The authors of this report hold no positions in the issuers discussed in this report CIBC Wood Gundy is a division of CIBC World Markets Inc., a member of the IDA and CIPF. This report is issued and approved for distribution to clients in Canada by registered representatives of CIBC Wood Gundy, a division of CIBC World Markets Inc., Member CIPF, and by its affiliates via their registered representatives. This report is not authorized for distribution in the United States. This document and any of the products and information contained herein are not intended for the use of private investors in the United Kingdom. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. The securities mentioned in this report may not be suitable for all types of investors. This report does not take into account the investment objectives, financial situation or specific needs of any particular client of CIBC Wood Gundy. Recipients should consider this report as only a single factor in making an investment decision and should not rely solely on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of the merits and risks of investments. CIBC Wood Gundy suggests that, prior to making an investment decision with respect to any security recommended in this report, the recipient should contact one of our client advisers in the recipient s jurisdiction to discuss the recipient s particular circumstances. Non-client recipients of this report should consult with an independent financial advisor prior to making any investment decision based on this report or for any necessary explanation of its contents. CIBC Wood Gundy will not treat non-client recipients as its clients by virtue of their receiving this report. Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance of any security mentioned in this report. Information, opinions and statistical data contained in this report were obtained or derived from sources believed to be reliable, but CIBC Wood Gundy does not represent that any such information, opinion or statistical data is accurate or complete (with the exception of information contained in the Important Disclosures section of this report provided by CIBC World Markets or individual research analysts), and they should not be relied upon as such. All estimates, opinions and recommendations expressed herein constitute judgments as of the date of this report and are subject to change without notice CIBC World Markets Inc. All rights reserved. Unauthorized use, distribution, duplication or disclosure without the prior written permission of CIBC World Markets is prohibited by law and may result in prosecution. 18 May 2016