TORONTO, ONTARIO — (Marketwire) — 03/23/12 — Canadian Utilities & Telecom Income Fund (the “Fund”) (TSX: UTE.UN) announces results for the period ended December 31, 2011. The net increase in net assets from operations amounted to $10.2 million or $2.01 per unit. Net assets were $62.8 million or $12.40 per unit, net of distributions to unitholders in the amount of $4.2 million or $0.84 per unit.
The Fund-s investment objectives are (i) to pay unitholders monthly distributions in an amount targeted to be 7.0% per annum on the net asset value (“NAV”) of the Fund; and (ii) to preserve and enhance the Fund-s NAV while reducing portfolio volatility.
The Fund achieves its investment objectives by investing in a portfolio consisting principally of equity securities of large capitalization (over $1 billion) Utilities and, to a lesser degree, Telecommunications issuers listed on the Toronto Stock Exchange (“TSX”). Issuers selected for inclusion in the portfolio must have a minimum distribution yield of 2.0% per annum.
The Fund may also invest up to 20% of the Fund-s NAV in equity securities of other Utilities and Telecommunications issuers listed on a North American stock exchange, subject to a minimum market capitalization of $250 million and a minimum distribution yield of 2.0% per annum.
The Fund employs a proprietary investment strategy, Strathbridge Selective Overwriting (“SSO”), to enhance the income generated by the portfolio and to reduce volatility. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.
The Fund-s investment portfolio is managed by its investment manager, Strathbridge Asset Management Inc. The Fund-s units are listed on TSX under the symbol UTE.UN.
For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit .
Contacts:
Strathbridge Asset Management Inc.
Aaron Ho
Vice-President, Finance
416.681.3966 or 1.800.725.7172
Strathbridge Asset Management Inc.
121 King Street West
Suite 2600
Toronto, Ontario, M5H 3T9