Diversified Alpha Fund II Comment on Recent Federal Budget Provisions

TORONTO, April 24, 2013 /CNW/ - Diversified Alpha Fund II (the "Fund") (AFT.UN) responded today to the recent Federal Budget provisions with respect to character conversion transactions. On March 21, 2013, the Minister of Finance announced proposed measures (the "Measures") which would affect certain tax benefits gained by taxable Canadian unitholders of investment funds, such as the Fund, that utilize forward agreements. The Fund's forward agreement provides unitholders with tax-advantaged distributions that are generally return of capital and capital gains.

Based on our current understanding of the budget announcement, these benefits will no longer be available for forward agreements that are entered into or amended after March 20, 2013. Propel Capital Corporation, the manager of the Fund (the "Manager"), believes that the Fund and the tax characterization of distributions received by unitholders will be unaffected by the Measures until the expiration of the Fund's forward agreement. As a result, there should be no impact to the distributions paid by the Fund until the scheduled expiration of its forward agreement in November, 2021. The Manager continues to review the implications of the Measures to determine what actions, if any, are required. The Manager will advise investors of any actions material to investors that it intends to take in response to the Measures as soon as decisions are made in this regard, or as circumstances otherwise warrant.

SOURCE: Diversified Alpha Fund II

please call Raj Lala, President, Propel Capital at 416-572-2364 or visit  www.propelcapital.ca