Thursday, 4 February 2010

Unit Holders Receive 33% Gain In Monthly Distributions

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 unit holders may have been biting their nails this morning as trading was temporarily halted but it was all for the good. It soon became clear as trading resumed with the news that monthly distributions had been increased from $0.015 to $0.02 per unit for February.

The market reacted accordingly as the units moved from $2.19 to $2.60 as of this writing.

In the words of CEO Tracy Graf, "we are pleased to report to our Unitholders that Carfinco has returned to the levels of financial performance achieved by the Fund prior to the economic downturn. In August 2009, when we first reinstated monthly cash distributions, our Board indicated that it would continue to act prudently in determining the amount of cash allocated to distributions in future months".

Based on the current trading price, the increased distribution equates to a 9.2% annualized yield, which is outstanding in a super low interest rate environment. Those who were wise and bought the units just a week ago in the low $2 range would be looking at an annualized yield approaching 12%.

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