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Monday, September 16, 2019

Unitholders Approve Conversions into Exchange-Traded Funds

CALGARY , May 17, 2019 /CNW/ - Middlefield Group is pleased to announce that the special meetings of unitholders of Middlefield Healthcare & Wellness Dividend Fund  ("Wellness") (TSX:HWF-UN.TO) and American Core Sectors Dividend Fund  ("Core") (TSX:ACZ-UN.TO) (each a "Fund" and collectively, the "Funds") were held today, at which approximately 98.8% of the unitholders of Wellness and 98.8% of the unitholders of Core present in person or represented by proxy voted in favour of respective resolutions authorizing the tax-free conversions of the Funds into exchange-traded funds, which are expected to occur in early June 2019 .

The conversions are expected to benefit unitholders of the Funds for the following reasons:

  • Reduced management fee : Upon completion of the conversions, Wellness and Core unitholders will see substantial management fee reductions from 1.1% to 0.85% and 0.75%, respectively.

  • Larger asset base improves liquidity and lowers costs : Since ETFs are in continuous distribution there is the potential for ongoing growth opportunities and the further reduction of expenses, as a percentage of assets, through greater scale.

  • Efficient trading : With a designated broker acting as a market maker, ETF units trade efficiently with tighter bid/ask spreads and closer to their net asset value.

  • Maintaining the attractive features of the Funds :  The conversions will not impact existing distributions to Unitholders and the investment strategies of the Funds will remain substantially similar following the conversions. In addition, both Funds will continue to be advised by Middlefield Capital Corporation's experienced portfolio management team.

  • Continuation of optional services :  The Funds will continue to offer optional services currently available to Unitholders, such as distribution reinvestments.

  • Tax-free conversions : No embedded gains or losses will be realized for income tax purposes by Unitholders due to the conversions.

Completion of the conversions is subject to the receipt of all necessary approvals and customary closing conditions.

SOURCE Middlefield Healthcare & Wellness Dividend Fund

View original content: http://www.newswire.ca/en/releases/archive/May2019/17/c0072.html

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