MONTREAL, July 4, 2014 /CNW Telbec/ - Global Diversified Investment Grade Income Trust ("Global DIGIT") announces that the net asset value ("NAV") per unit as at June 30, 2014 was estimated to be $9.35.
The NAV on a particular date is equal to the aggregate value of the assets of Global DIGIT less the aggregate value of its liabilities. Substantially all of the assets of Global DIGIT consist of cash and three credit default swaps entered into with Deutsche Bank A.G. and the related collateral.
As disclosed earlier, Global DIGIT will redeem all its outstanding units on September 9, 2014 (the "Termination Date"). The net income realized by Global DIGIT at the Termination Date, if any, and paid out to unitholders will be taxable as ordinary income. Unitholders should consult their tax advisors to determine how they are going to be affected by the redemption price at Termination Date, on the tax consequences arising from the sale of units on the secondary market prior to such redemption and the most appropriate option given their personal circumstances. Generally, unitholders who dispose of their units prior to the Termination Date will realize a capital gain or capital loss. In the absence of any default resulting in losses for Global DIGIT, it is expected that the redemption price on the Termination Date will be approximately $9.50 per unit. For a unitholder having purchased its units at the time of issue at a price of $10.00, who still owns these units at the Termination Date and based on revenues and expenses assumptions and save for losses affecting Global DIGIT, if any, it is expected that from the estimated amount of $9.50 per unit, approximately $4.75 will represent an attribution of taxable ordinary income and approximately $4.75, a non-taxable return of capital.
About Global DIGIT
Global DIGIT provides an economic interest in a mezzanine tranche of credit default swap agreements in respect of portfolios of synthetic corporate exposures, mortgage-backed securities, asset-backed securities and structured finance securities.
SOURCE: Global Diversified Investment Grade Income Trust
Louis Arteau : 514-394-7563, http://info.fbn.ca/trusts
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