FUND DESCRIPTION::
diversiTrust Stable Income Fund is a closed-end
trust that will invest in a diversified portfolio of high
income securities, primarily business, utility, real estate
and resource trusts. It has received an SR-1 stability
rating from Standard & Poor's ("S&P").
INVESTMENT OBJECTIVES::- provide unitholders with monthly cash
distributions of $0.0625 per trust unit (approximately
7.5% per annum on the original issue price of $10.00);
- maintain a Standard & Poor's
SR-1 stability rating;
- return the original issue price upon
termination which includes the opportunity for capital
appreciation.
FUND FEATURES ::
SR-1 Rating - an SR-1 rating,
S&P's highest available rating for income trusts signifies
S7P's assessment that the trust units have the highest level
of distribution sustainability and the lowest level of distribution
variability relative to other Canadian rated income trusts.
Leverage
- the Fund will utilize a prudent
level of leverage in order to enhance the Fund's total return.
Management Fee - the Manager of the Fund will reinvest the
management fee in units of the Fund for at least the first
three years.
Distribution Reinvestment
- unitholders have the option to reinvest distributions
received by the Fund on a monthly basis.
Mandatory Purchase Program
- the Fund will purchase units in the market if prices
are less than 95% of the latest NAV per trust unit
Liquidity - units of the
Fund can be sold on the Toronto Stock Exchange or commencing
in September 2004 (and on an annual basis thereafter) redeemed
at 100% of NAV per trust unit as of the date of redemption.
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