Caldwell U.S. Dividend Advantage Fund Launches ETF Series and Declares Distributions for Q2 2020
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, March 16, 2020 (GLOBE NEWSWIRE) — Caldwell Investment Management Ltd. (“CIM”), the manager of Caldwell U.S. Dividend Advantage Fund (the “Fund”) is pleased to announce the successful launch of an actively managed exchange traded series of the Fund (the “ETF Series”). The ETF Series commenced trading on the Toronto Stock Exchange (“TSX”) today under the ticker symbol UDA.
The annual management fee on the ETF Series is 0.75% of net assets, which is equivalent to the fee charged on the Series F units of the Fund. CIM may waive or reduce the management fee and may also absorb operating expenses otherwise payable by the Fund with the intention of managing the Fund’s management expense ratio (“MER”). Accordingly, CIM does not anticipate the MER in 2020 to exceed 0.85% for the ETF Series.In addition, the Fund is pleased to announce the payment of distributions on the ETF Series to unitholders of record as indicated below. The monthly distribution rate of CAD$0.038 per unit of the ETF Series represents an attractive annualized yield on net assets of approximately 4%.ETF Series unitholders also have the option to participate in the distribution reinvestment plan (“DRIP”) offered by the Fund, which provides investors with the ability to automatically reinvest distributions and realize the benefits of compounded growth. Unitholders can enroll in the DRIP program by contacting their investment advisor.Since its inception on June 19, 2015 to February 29, 2020, the Fund has paid unitholders cumulative distributions of $2.52 per unit.The ETF Series of Caldwell U.S. Dividend Advantage Fund trades on the TSX under the ticker symbol UDA.For further information, please visit our website at www.caldwellinvestment.com or contact us at 416-593-1798 or 1-800-256-2441.The Fund was first offered to the public as a closed-end investment (May 28, 2015) and with effect from November 15, 2018 was converted into an open-end mutual fund, with all outstanding units predesignated as Series F units. Performance of the Fund prior to the conversion date would have differed had the Fund been subject to the same investment restrictions and practices of the current open-end mutual fund. Further, the Fund reduced its management fees by 1% (October 17,2019) resulting in fees of 1.75% for Series A units and 0.75% for Series F units. Further, MERs for 2020 are expected to not exceed 1.85% for Series A units and 0.85% for Series F and ETF Series units.