Distribution Policy

The Fund’s policy is to make distributions of our available cash to the maximum extent possible to Unitholders. The Fund intends to make cash distributions to Unitholders of record on the last business day of each month, less amounts that are estimated to be required for expenses, cash redemptions or repurchases of Units, any tax liability, other Fund obligations and any reasonable reserves established by the Fund’s Trustees.

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Tax Treatment of Cash Distributions

A component of the cash distribution of the Fund is taxable in the hands of the unitholder, unless held in a tax deferred account. The annual income characterization of distributions paid per unit to unitholders is summarized in the following table: 

For most unitholders, the return of capital amount will reduce the cost base of each unit for purposes of calculating the capital gains amount upon disposition of the units.

Distributions paid in 2006 and 2007 are deemed “Eligible Dividends” for tax purposes.

Subordination Feature

The Fund has a subordination feature whereby distributions to the previous owners (representing a 20% non-controlling or retained interest) are subordinated to those of public unitholders, with 100% of distributable cash available in priority to make monthly distributions of $0.0854 per unit to the public unitholders.

Distributions to the non-controlling interest’s units are paid quarterly in arrears. Distributions to the non-controlling interest are made only if public unitholders have received their priority monthly distribution of $0.0854 per unit. Any missed distributions to the non-controlling interest may be paid to them for a period of twelve months following the missed distribution, to the extent there is sufficient distributable cash available after paying the public unitholders. Monthly distributions to the public unitholders cannot be increased above $0.0854 per unit during any month in which a suspension of distributions has been in effect to the non-controlling interest in a preceding twelve month period.

The retained interest is subordinated until the EBITDA and distributable cash tests established at the time of the Fund’s initial public offering are met. The terms of the EBITDA and distributable cash tests are described in the notes to the financial statements of the Fund.

Complete Distributions History