Canadian Utilities & Telecom Income Fund Fact Sheet
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UTE.UN |
Fund Overview |
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Overview
The Fund is a closed-end investment trust that invests in the utilities and telecommunications sectors and utilizes Strathbridge’s proprietary SSO covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.
Rationale
These sectors typically demonstrate predictable cash flows, high and growing dividends and are generally viewed as defensive investments. The Fund is appropriate for those investors looking for exposure to the Canadian utility and telecommunications sectors while earning attractive distributions with lower volatility.
Distributions
Distributions are calculated and paid monthly based on 7.0% per annum of the net asset value of the Fund.
Portfolio
The portfolio will generally consist of 15-20 issuers with approximately 2/3 from the utility sector and 1/3 from the telecommunications sector.
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| Top 10 Holdings as of March 31, 2013 |
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| ROGERS COMMUNICATIONS INC-B |
6.95% |
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| BCE INC |
6.70% |
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| SHAW COMMUNICATIONS INC-B |
6.65% |
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| TELUS CORP |
6.62% |
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| ALTAGAS LTD |
6.58% |
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| KEYERA CORP |
6.51% |
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| GIBSON ENERGY INC |
6.16% |
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| ENBRIDGE INC |
6.06% |
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| ENBRIDGE INCOME FUND HOLDING |
5.96% |
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| TRANSCANADA CORP |
5.88% |
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| Sector Allocations |
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