Canoe EIT Income Fund Plans Enhanced Cash Redemption for 2024

Canoe EIT Income Fund Enhances Cash Redemption Process for 2024

Canoe EIT Income Fund, one of the leading closed-end investment funds in Canada, has recently unveiled its plans for a voluntary cash redemption for the year 2024. The Fund seeks to provide an attractive opportunity for its unitholders to manage their investments flexibly.

Details of the Annual Voluntary Cash Redemption

The Fund’s annual voluntary cash redemption is scheduled for December 6, 2024. Unitholders wishing to redeem their units can do so at a price of 95% of the Average Net Asset Value (NAV) based on the three trading days leading up to the redemption date. This approach reduces direct costs, which are expected to be minimal, potentially below 1% of the transaction value.

To ensure fairness, in cases where redemption requests surpass 10% of the total outstanding units by November 15, 2024, redemptions will be processed on a pro-rata basis. This means that if the volume exceeds the threshold, the Fund will proportionally allocate the redemption amount based on each request.

Unitholders intending to redeem are advised to notify their investment advisors or brokerage firms by November 15, 2024. It’s essential to consult with these firms as they may enforce earlier deadlines for processing these requests.

Key Dates for Redemption Requests

Unitholders should pay attention to the following important dates related to the redemption process:

• **October 8 - November 15, 2024:** Unitholders can tender units for redemption during this period.
• **December 3, 4, 5, 2024:** The redemption price will be ascertained using the average NAV from trading days within this window.
• **December 6, 2024:** This is the official redemption date.
• **On or before December 31, 2024:** Payments for accepted redemption requests will be issued.

Unitholder Considerations

For registered unitholders, who possess physical share certificates in their names, contacting the Fund's transfer agent, Alliance Trust Company, will be necessary. They can reach out at 1-877-537-6111 to initiate the redemption process.

It’s important for unitholders residing outside the country to be aware that their redemption requests may be subjected to withholding taxes, which could affect the net amount received upon redemption. This is a critical point for non-resident unitholders to consider.

Understanding Canoe EIT Income Fund

Canoe EIT Income Fund stands as one of Canada’s largest entities in the closed-end investment sector. Its strategic focus is on maximizing monthly distributions and capital appreciation through investments in a diverse portfolio of high-quality securities. It trades on the Toronto Stock Exchange (TSX) under the ticker EIT.UN.

The management of the Fund is led by Robert Taylor, Senior Vice President and Chief Investment Officer at Canoe Financial, a firm recognized for its innovative approach to fund management and investment solutions.

About Canoe Financial

Canoe Financial, established in 2008, is among Canada’s rapidly expanding independent mutual fund companies, overseeing approximately $18.0 billion in assets. The firm prides itself on constructing a broad spectrum of award-winning investment solutions tailored to foster financial growth for Canadians.

With a substantial presence throughout Canada, including offices in major cities like Calgary, Toronto, and Montreal, Canoe Financial positions itself effectively to respond to the diverse needs of investors across the nation.

Get in Touch

If you need more information, you can contact Investor Relations at Canoe Financial by calling 1–877–434–2796. Alternatively, inquiries can be directed to info@canoefinancial.com.

Frequently Asked Questions

What is the purpose of the voluntary cash redemption?

The redemption allows unitholders to convert their investment units into cash at a predetermined price, enhancing liquidity.

How is the redemption price established?

The price is set at 95% of the Average Net Asset Value calculated from specific trading days before the redemption date.

What are the important dates I should remember?

Key dates include October 8-November 15 for tendering units, December 3-5 for NAV calculations, December 6 for the redemption date, and payments by December 31.

Who can I contact for help regarding redemptions?

Registered unitholders should contact the Fund's transfer agent, Alliance Trust, or their respective investment advisor for guidance.

Are there tax implications for non-resident unitholders?

Yes, redemption requests from non-residents may incur withholding taxes, potentially impacting the final cash received.

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