Canoe Financial Reveals Special Non-Cash Distribution Amount

Canoe Financial Unveils Details of Special Non-Cash Distribution

Canoe Financial LP, a key player in Canada’s investment management sector, has recently made an important announcement regarding the Canoe EIT Income Fund. The Fund is set to provide unitholders with a special non-cash distribution intended to enhance the overall investment experience.

Details of the Special Distribution

For those unitholders recorded as of December 31, 2024, a special non-cash distribution amounting to $0.45 per unit will be allotted. It’s important to note that unlike cash distributions, there won’t be any physical payment involved in this distribution scheduled for January 15, 2025.

Understanding Non-Cash Distributions

The essence of such distributions lies in the Fund’s obligations to distribute its net income and any capital gains before the taxation year ends. This means that the distribution is primarily made up of the remaining net realized capital gains and net income that hadn’t been distributed previously. This approach ensures that unitholders benefit from their investments while keeping tax implications in check.

Reinvestment of Distributions

The unique aspect of this distribution is that it will not be issued in cash; instead, it will be reinvested into additional units of the Fund. Following this reinvestment, the newly acquired units will be immediately consolidated with the units already in circulation, ensuring a smooth transition without altering the total number of outstanding units. This method effectively increases each unitholder's adjusted cost base for the Fund.

Tax Reporting Information

In early 2025, brokers will receive reports concerning the actual taxable amounts of all distributions for the year 2024, detailing the tax characteristics of these distributions. This transparency helps investors to stay informed on the financial impacts of their holdings.

About the Canoe EIT Income Fund

Founded with the objective of maximizing monthly distributions and promoting capital growth, the Canoe EIT Income Fund stands as one of Canada’s largest closed-end investment funds. It is managed by Robert Taylor, who brings a wealth of experience to the role of Senior Vice President and Chief Investment Officer at Canoe Financial. The Fund is operated under the ticker symbol TSX: EIT.UN on the Toronto Stock Exchange.

Who is Canoe Financial?

Canoe Financial has emerged as one of Canada’s fastest-growing independent mutual fund companies, currently overseeing an impressive $19 billion in assets across a varied array of award-winning investment solutions. With its inception in 2008, the firm has diligently focused on empowering Canadians to build their financial wealth. Notably, Canoe Financial operates from multiple offices throughout Canada, including significant locations in Calgary, Toronto, and Montreal.

Further Inquiries

For those seeking more information about Canoe Financial or the EIT Income Fund, the Investor Relations team is available at 1–877–434–2796. They can also be reached through their online platform for any inquiries regarding this announcement.

Frequently Asked Questions

What is the special non-cash distribution amount for unitholders?

The special non-cash distribution amount is $0.45 per unit for unitholders recorded as of December 31, 2024.

When will the special non-cash distribution be paid?

The payment date for the special non-cash distribution is scheduled for January 15, 2025.

How will the distribution affect existing units?

The distribution will be reinvested in additional units, which will immediately consolidate with existing units, maintaining the total number of outstanding units.

What is the tax reporting process for these distributions?

Brokers will receive reports regarding the taxable amounts of all distributions for 2024 and their tax characteristics in early 2025.

What does Canoe Financial focus on?

Canoe Financial is dedicated to managing a diverse range of investment solutions to help Canadians build their financial wealth.

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