Convertible & Yield Advantage Trust is an investment trust established in August 2003 with the objective of providing investors with a stable stream of monthly distributions amounting to a yield of 7.0% or $1.75 per unit annually, and returning at least the original subscription price of the units to unitholders on the termination date in 2013.

The trust provides investors with exposure to three yield generating asset classes – convertible securities, high yield securities and income trust securities – which are leveraged to equity market recovery and have low correlation to one another.

• Convertible securities offer enhanced yield, downside protection and capital gains potential.
  
• High Yield securities offer attractive risk/return characteristics, with low correlation to fixed income investments or equity investments, typically mirror the relative strength or weakness in the economy as a whole and should outperform in a risking interest rate environment.
  
• Income Trust securities offer enhanced yield, stable and frequent cash flows along with the potential for capital appreciation.

The initial asset allocation will be: 40% convertible securities, 30% high yield securities and 30% income trust securities.

HIGHLIGHTS:

10-year instrument with tax-effective monthly distributions – target 7.0% per annum

• Significant portion of the distribution will consist of capital gains, resulting in tax-effectiveness without the expense of a forward agreement.
  
• Targeted monthly distribution is expected to be supportable on underlying yield alone.
  
• Any additional net income or net realized gains will be paid out as a special distribution at the end of any year.
  

First-class portfolio management and active asset allocation

• MFC Global Investment Management is a division of Elliott & Page Limited, a Manulife company.
  
• The portfolio will be actively managed among the three asset classes with a team of nine experienced and dedicated professionals.
  
• Senior portfolio managers Terry Carr and Alan Wicks have over 30 years of combined investment management experience.
• Security selection will be driven by bottom-up research and overlaid with a quantitative risk assessment strategy.
  

Liquidity

• Listing on the TSX, market purchase programs and annual redemptions at NAV.
  

RRSP eligibility

• The trust is eligible for RRSPs as foreign content.