Tuesday, 9 February 2010

Carfinco Drives Distributions Into 2011

Carfinco Income Fund (TSX: CFN.UN)
Units issued basic 23.9 million
Units issued fully diluted 24 million
Current monthly distribution: $0.02
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Carfinco Income Fund today addressed an issue that was on many investors minds, what happens to monthly distributions once Carfinco becomes a taxable entity at year end?

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The answer is that the company will distribute cash on a monthly basis as a dividend instead of a distribution once it converts back to a corporation. Carfinco is convinced that it can maintain its current level of $0.02 per unit in monthly distributions throughout 2010 and then into 2011 once the trust is dissolved. Investors should receive a monthly dividend at $0.02 per share or better in 2011 which offers the benefit of a lower effective tax rate to the investor.

The Board of Trustees also announced that a portion of or all excess income from the fund that is not distributed monthly will be offered as a special distribution on a quarterly basis instead of at year end as it has in the past.

See full news release here...........