Strathbridge Asset Management
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Core Canadian Dividend Trust

 

CDD.UN

Fund Features

Objectives

The Fund’s investment objectives are:

  1. to provide Unitholders of the Fund with monthly cash distributions targeted to be 6.5% per annum on the NAV of the Fund; and
  2. to preserve and grow the NAV per Unit.

Investment Strategy

The Fund invests in a blue chip portfolio consisting of 15 high quality, large capitalization, dividend paying Canadian companies across multiple industry sectors that have an excellent long-term track record of dividend growth and share price appreciation. The Fund will generally invest not less than 4% and not more than 10% of the NAV in each security comprising the Core Canadian Dividend Portfolio, as well as, up to 25 percent in other securities listed on the Toronto Stock Exchange.

To generate additional returns, the Fund may, from time to time, write covered call options in respect of all or part of the securities in the portfolio. In addition, the Fund may write cash covered put options and may invest up to 10% of net assets to purchase call options, both in respect of securities in which the Fund is permitted to invest.

Option Strategy

The Fund employs Strathbridge’s proprietary SSO option strategy to generate additional returns above the distributions earned on its equity securities.

Click here for a detailed review of the Strathbridge Selective Overwriting (“SSO”) strategy.

Distributions

Distributions are calculated and paid monthly based on 6.5% per annum of the net asset value of the Fund.

Click here for a complete distribution history including the historical tax allocation.

Redemptions

The Fund is redeemable annually in December of each year at the option of the unitholder and monthly at a discount to market price.

Click to expand Redemption Details:

Redemption Deadlines
Units may be surrendered at any time for redemption, but will be redeemed only on a Redemption Date, being the last business day of any month. Units surrendered for redemption by a Unitholder at least twenty business days prior to the last day in December (the “Annual Redemption Date”) will be redeemed on such Annual Redemption Date. Units surrendered for redemption by a Unitholder at least ten business days prior to the last day of any other month (a “Monthly Redemption Date”), will be redeemed on such Monthly Redemption Date. Unitholders will receive payment for the Units on or before the 15th day following any such Redemption Date. If a Unitholder surrenders Units after 5:00 p.m. (EST) on the applicable cut-off date, the Units will be redeemed on the following Redemption Date. Redemption notices must be delivered to the Fund by an investor’s advisory form in sufficient time to meet the deadline.

Annual Redemption
Units surrendered for redemption at least 20 business days prior to the last day of December will be redeemed at 100% of net asset value, valued on the last business day of December being the redemption day. Payment will be received on or before the 15th day following the redemption day.

Monthly Redemption
For Unitholders whose Units are redeemed on any other Redemption Date, the redemption price per Unit will be equal to the lesser of:
  1. 95% of the Market Price. For such purposes, “Market Price” means the weighted average trading price of the Units on the principal stock exchange on which the Units are listed for the ten trading days immediately preceding the applicable Redemption Date, and
  2. 100% of the Closing Market Price of the Units on the applicable Redemption Date, minus an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio. For such purposes, the “Closing Market Price” means the closing price of the Units on the principal stock exchange on which the Units are listed (or, if the Units are not listed on any stock exchange, on the principal market on which the Units are quoted for trading) or, if there was no trade on the relevant date, the average of the last bid and the last asking prices of the Units on the principal stock exchange on which the Units are listed (or, if the Units are not listed on any stock exchange, on the principal market on which the Units are quoted for trading).

Any unpaid distribution payable on or before the applicable Redemption Date in respect of Units tendered for redemption on such Redemption Date will also be paid on the applicable Redemption Payment Date.


Leverage

The Fund does not employ leverage.

Termination

There is no fixed termination date as units may be sold daily on the TSX or redeemed annually at net asset value per unit.

CUSIP ISIN

CUSIP – 21867N107
ISIN - CA 21867N1078

Eligibility

RRSPs, DPSPs, RRIFs, RESPs and TFSAs

Issuer Bid

The Fund may purchase up to 10% of its outstanding units at prices up to net asset value per unit.

Management Fees

The Fund pays a management fee of 1.10% of net asset value annually to Strathbridge Asset Management for acting as the Manager and the Investment Manager.

Service Fee

A service fee of 0.40% of NAV per unit per annum is paid quarterly to Investment Advisors.

MER

The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value.

Inception Date

11-16-2006

Manager

Strathbridge Asset Management