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EnerVest Diversified Income Trust Announces March 2012 Distribution & Confirms Distribution for 2012

CALGARY, ALBERTA – March 20, 2012 – EnerVest Diversified Income Trust (“EnerVest” or the “Fund”) (TSX - EIT.UN) announces the March 2012 distribution of $0.10 per unit.  The distribution will be paid on April 13, 2012 to unitholders of record on March 30, 2012.  The ex-distribution date for this payment is March 28, 2012.  

2012 Distribution Confirmation
For the remainder of 2012, the Fund intends to pay a $0.10 per unit monthly distribution.  Record, payment and ex-distribution dates for each distribution will continue to be provided via news release on a monthly basis. 

About the Distribution
The Fund’s objective is to deliver a consistent, high-yield, monthly cash distribution from a portfolio of income-generating and capital growth oriented securities.

Distribution Maintenance Strategy
Since inception, the distribution has been funded from a variety of investment sources, including portfolio dividends, interest and realized capital gains.  The Fund has more recently undertaken a covered call option strategy to generate additional income through the receipt of call option premiums. This strategy allows us to hold a security in anticipation of future capital appreciation while ‘writing’, or selling, a call option on a portion of the security in order to generate additional income.  Call options are short-term, typically less than 30 days, retaining medium to long-term capital appreciation opportunities for the Fund.  

The portfolio manager will use this strategy opportunistically, particularly during times when the market is flat or downward trending.  During weaker markets, our covered call option strategy will generally provide higher returns and lower volatility for the Fund compared to a portfolio that does not utilize this strategy.  We believe this strategy will help sustain the distribution in such markets.  During stronger markets, the portfolio manager may continue to use this strategy and may also rely on realized capital gains to fund distributions. 

This strategy provides the portfolio manager and the Manager added confidence in re-affirming the distribution for the remainder of the year, despite volatility in the capital markets.

Historical Fund Performance
Cumulative Compound Returns (February 28, 2002 to February 29, 2012)
 
1 mo.
3 mo.
6 mo.
YTD
1 yr.
2 yr.
3 yr.
5 yr.
10 yr.
EIT.UN
3.0
5.4
5.5
6.6
(3.2)
9.9
26.2
5.9
10.8
Benchmark*
1.7
4.3
0.4
6.1
(8.2)
7.1
19.2
2.2
7.7
*S&P/TSX Total Return Index

 

Warrant Offering
On November 1, 2011, EnerVest announced that a final prospectus had been filed for an offering of warrants to unitholders of the Fund.  Each unitholder of record on November 11, 2011 was entitled to receive one-quarter of a warrant for each EnerVest unit held.  Anytime prior to the expiry date of 5:00 pm (Calgary time) on April 30, 2012 each whole warrant will entitle the holder to subscribe for one unit of EnerVest upon payment of the subscription price of $13.99. 

The Fund will pay an exercise fee of $0.30 per warrant to the investment advisor of the CDS participant whose client is exercising the warrant at the time the warrant is exercised.

The warrants are not qualified for distribution in the United States of America.  For further details, please consult the final prospectus and your investment advisor.  A copy of the final prospectus can be found on SEDAR at www.sedar.com and on the Canoe website at www.canoefinancial.com or you can contact us at 1-877-434-2796.

About the Fund
The Fund is one of Canada's largest, diversified closed-end investment funds and is listed on the TSX under the symbol EIT.UN.  The Fund is actively managed and invests in a diversified portfolio of income-generating and capital-growth oriented securities listed primarily on the TSX.  The Fund is designed to maximize distributions and net asset value for the benefit of its Unitholders.  Bob Haber is the portfolio manager of the Fund.

About Canoe Financial LP
Canoe Financial is the Registered Portfolio Manager and Manager of the Fund. Canoe Financial is an investment management firm focused on building financial wealth for Canadians through investing in Canada. Its ‘GO CANADA!’ investment thesis reflects Canoe’s strategic confidence in Canada as a place to invest. With continued global urbanization, increasing worldwide demand for resources, and Canada’s sound fiscal structure, Canoe believes this country provides long-term growth potential for investors. 

Canoe is one of Canada’s fastest-growing investment fund companies and currently manages approximately    $1.7 billion in assets through its investment products. To learn more about Canoe Financial, visit www.canoefinancial.com.


For further information, please contact:
Investor Relations
Canoe Financial LP
1–877–434–2796
www.canoefinancial.com
info@canoefinancial.com

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States of America.

Bob Haber is the Chief Executive Officer and Chief Investment Officer of Haber Trilix Advisors, LP, who is a sub-advisor to Canoe Financial LP.  Canoe is the registered Portfolio Manager and Manager of the Fund.

Forward Looking Statement: Certain statements included in this news release constitute forward looking statements which reflect Canoe Financial’s current expectations regarding future results or events. Words such as “may,” “will,” “should,” “could,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “potential,” “continue” and similar expressions have been used to identify these forward-looking statements. Forward-looking statements involve significant risks and uncertainties and a number of factors could cause actual results to materially differ from expectations discussed in the forward looking statements including, but not limited to, changes in general economic and market conditions and other risk factors. Although the forward-looking statements are based on what Canoe Financial believes to be reasonable assumptions, we cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the current date and we assume no obligation to update or revise them to reflect new events or circumstances.

This communication is not to be construed as a public offering to sell, or a solicitation of an offer to buy securities.  Such an offer can only be made by way of a prospectus or other applicable offering document and should be read carefully before making any investment.   This release is for information purposes only. Investors should consult their Investment Advisor for details and risk factors regarding specific strategies and various investment products.

The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns.