Government Strip Bond Trust

Historic Net Asset Value Per Unit

The Fund calculates the net asset value (“NAV”) per share on a weekly basis as of the close of business on Thursday and generally posts the amount at the close of business on Friday. If the last day of a month falls during the week on a day other than Thursday, the NAVs per share are calculated as of the last day of the month for that week and the regular weekly calculation on Thursdays is resumed the following week.

 

 

Portfolio Manager Updates

 

Fund Features

Objectives

The Fund’s investment objective is to return at least $25.75 per unit to unitholders upon termination of the Fund on December 31, 2012.

 

Investment Strategy

The Fund invests in a portfolio of zero coupon bonds issued by Canadian provincial governments and/or the Government of Canada.

 

Distributions

The Fund does not pay distributions since its reorganization pursuant to a unitholder vote in May 2006.

 

Redemptions

The Fund is redeemable annually at net asset value in December of each year at the option of the unitholder and monthly at a discount to net asset value.

 

Leverage

The Fund does not employ leverage.

 

Termination

The Fund is scheduled to terminate on December 31, 2012

 

CUSIP ISIN

CUSIP – 383749108
ISIN - CA 3837491081

 

Eligibility

RRSPs, DPSPs, RRIFs, RESPs and TFSAs

 

Management Fees

The Fund pays a management fee of 0.50% of net asset value annually to Mulvihill Capital Management for acting as the Manager and the Investment Manager.

 

MER

The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value. For the year ended December 31, 2011, the Fund’s MER was 1.02%.

 

Inception Date

03/02/2001

 

Manager

Mulvihill Capital Management Inc.

 

Documentation

Note:

Prior to May 26, 2006 this fund operated as Mulvihill Pro-AMS RSP Fund - PR.UN. See press release of May 24, 2006 for more information.

Administration & Governance

Introduction

Mulvihill Capital Managent Inc. serves as the Manager and the Investment Manager of the Fund.

 

Manager

The Manager is responsible for providing or arranging for the provision of administrative services to the Fund including but not limited to:

• authorizing the payment of operating expenses incurred on behalf of the Fund,
• preparing financial statements and other accounting information,
• ensuring that unitholders are provided with annual and semi-annual reports and other reports as required by applicable law;
• ensuring the Fund complies with regulatory requirements and applicable stock exchange listing requirements;
• providing the Trustee with information and reports as required;
• calculating and arranging for the payment of distributions;
• negotiating any contractual agreements with third-party providers of services to the Fund, including auditors, printers, registrar and transfer agent
• Overseeing and paying monthly and annual redemptions;
• Managing the issuer bid;
• Maintaining the website and ongoing communication with investors.

The Management fee payable to the Manager includes any amount payable to the Investment Manager.

 

Investment Manager

The Investment Manager is responsible for making all investment decisions and managing the call option writing program in accordance with the investment objectives, strategies and restrictions of the Fund. Fees for the provision of investment management services are included in the management fee.

The Investment Manager has an asset mix committee consisting of senior members of the firm. The investment process for the Fund begins at the asset mix committee. Members of this committee meet monthly to examine macro-economic variables and relationships among dominant economic factors. This process culminates in an outlook for the various capital markets around the world and provides the Fundamental basis for Mulvihill’s long-term market outlook. These views are integrated into the investment decision making process at the portfolio management level. The asset mix committee of Mulvihill oversees investment decisions made by the portfolio managers of the Fund.

 

Independent Review Committee

The Fund has established an Independent Review Committee (“IRC”) in accordance with National Instrument 81-107 – Independent Review Committee for Investment Funds (“NI 81-107”) which is comprised of three members who are independent of the Manager. The mandate of the IRC is to review and provide its decisions to the Manager regarding any conflict of interest matters relating to its management of the Fund that the Manager has identified and brought to the committee.

A conflict of interest matter is a situation where a reasonable person would consider the Manager or an entity related to it to have an interest that may conflict with the Manager’s ability to act in good faith and in the best interests of the Funds and Securityholders. Click here for the IRC Report to Securityholders.

Click here to review members of the IRC.

 

Advisory Board

The Fund has established an Advisory Board to assist the Fund in the provision of services by the Manager and the Investment Manager and to provide oversight of these activities. The Advisory Board consists of five members, three of whom are independent of the Manager and Investment Manager. The three independent members of the Advisory Board are also members of the Independent Review Committee. The Advisory Board includes an audit committee whose mandate is to review the annual and semi-annual financial statements and discuss any issues with the auditors.

 

Trustee and Custodian

RBC Investor & Treasury Services

 

Registrar and Transfer Agent

Computershare Investor Services Inc.

 

Legal Counsel

Osler Hoskin & Harcourt LLP

 

Auditors

Deloitte & Touche LLP