Special & Year End Income Distributions
Toronto, December 15, 2000: First Premium U.S. Income Trust [FPU.UN] has declared a regular quarterly income distribution of C$0.50 per Unit and a special distribution of C$0.25 per Unit payable December 29, 2000 to holders of record on such date. The special distribution will ensure that the Trust distributes sufficient of its net income and net realized capital gains for 2000 so that it will not be liable for tax. The amount of the distribution may therefore be subject to minor adjustment.
The total distribution for Unitholders for the year ending December 31, 2000 should therefore be $2.75 per Unit (including special distributions during the year of $0.75) equivalent to an 11% annual distribution yield on the original issue price of $25.00.
Unitholders of First Premium U.S. Income Trust may elect to have their distributions re-invested into additional units by enrolling in the TrustÕs Distribution Reinvestment Plan. In order to take advantage of distribution reinvestment, Unitholders should contact their broker or the Plan Agent (Computershare) as soon as possible to enroll in the plan.
The TrustÕs investment objectives are to provide Unitholders with a stable stream of quarterly distributions of at least $0.50 per Unit. The Trust intends to achieve its investment objectives by investing in a diversified portfolio consisting primarily of common shares issued by corporations that rank in the top 50 of the Standard & PoorÕs 100 Index. In order to generate returns above the dividend income generated by the portfolio, the Trust will write covered call options in respect of all or part of the securities in the portfolio. In addition, the Trust may write cash covered put options in respect of securities in which the Trust is permitted to invest.
The TrustÕs investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. Trust Units are listed on The Toronto Stock Exchange under the symbol FPU.un