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Strata Income Fund Archive
Features & Benefits
Capital Units
    Tax-Efficient Income
  A significant percentage of the distributions received by Capital unitholders will be classified as return of capital under Canadian tax rules. The return of capital component reduces the adjusted cost base of the units for purposes of calculating capital gains tax when the units are sold.
   
  Potential for Increased Returns
  Capital unitholders will directly benefit from any capital appreciation or increase in distributions paid by COMPASS Income Fund, the fund in which STRATA will invest.
   
Preferred Securities
  High Quality
  With a term to maturity of less than six years, the Preferred Securities represent a short term, fixed yield investment providing a 6% per annum return, paid quarterly. The Preferred Securities rank senior to the Capital Units in respect of both distributions and capital repayment. The Securities are rated Pfd-2 (low) by DBRS.
   
Liquidity
  TSX Listing
The Capital Units and Preferred Securities can be bought and sold on the TSX under the following symbols:
Capital Units: STW.UN
Preferred Securities: STW.PR.A
   
  Low Fee Structure
There are no management fees or administration fees charged to STRATA since the assets of this fund are invested entirely in COMPASS Income Fund, a fund which is co-advised by Guardian Capital and Middlefield.
   
  Redemptions
Effective April 27, 2006, as a result of the two-for-one split of capital units, a unitholder must surrender for redemption at least two capital units (or a multiple of two). Capital units and preferred securities may be surrendered for redemption on any business day that is at least 25 business days prior to a valuation date. Unitholders may redeem capital units on the November 30th valuation date of each year at a redemption price which is based on the net asset value (NAV) per capital unit, aggregated for the two capital units so surrendered. A Unitholder who surrenders units for redemption at least 25 business days prior to November 30 of any year will receive payment on or before the 15th business day following November 30. Unitholders whose capital units are redeemed will be entitled to receive a redemption price per unit calculated with reference to the NAV of the Fund determined as of the applicable November 30 date less any costs associated with the redemption, including commissions. If a preferred security is not surrendered for redemption in conjunction with two capital units, the excess paid by the Fund to repurchase a preferred security will reduce the aggregated NAV of the two capital units. Any unpaid distribution declared on or before November 30 in respect of units redeemed on such date will be paid to the unitholder redeeming such units on the date on which the distribution is payable to the unitholders. For further information, please refer to the Fund's declaration of trust.
   
Eligibility For Investment
  Capital Units and Preferred Securities are considered Canadian property for RRSPs, RRIFs, DPSPs and RESPs.
 
     
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