FAQs

General

• What are the Fund’s objectives?

  EIT’s investment objectives are to maximize distributions and Net Asset Value while managing risk for Unitholders through an actively managed, high yielding diversified portfolio of income-generating and capital-growth oriented securities.

• Who is the Portfolio Manager for this fund?

  Effective November 15, 2010, Bob Haber of Haber Trilix Advisors, LP assumed the portfolio management responsibilities for EIT.UN.  For more information on Mr. Haber please click here.

• How do I purchase units of EIT and what kinds of costs are associated?

  EIT.UN trades on the Toronto Stock Exchange as a common stock under the symbol EIT.UN, and has a market price.  To purchase units of EIT, you require an account with an investment advisory firm.  Commissions are paid to your investment advisor and/or brokerage firm when you purchase or sell any units. 

• What is the Management Expense Ratio?

  The Management Expense Ratio (MER) consists of management fees, the general and administrative expenses relating to the operation of EIT.UN, and interest on the credit facility.

  MER (December 31, 2011):
  1.47% excluding issue costs and interest
  1.78% including issue costs and interest

• What is the termination date for the EnerVest Diversified Income Trust?

  EIT has a dissolution date of December 31, 2050, subject to any extension approved by the Unitholders or earlier termination as described in the Annual Information Form.

• Is the Fund able to use leverage? If so, how much?

  Pursuant to the Declaration of Trust, EIT.UN is able to borrow up to 20% of the value of the total assets of the fund after giving effect to the borrowing. 

• How does the Fund determine and support the distribution?

  The distribution is designed to be funded primarily by portfolio income and topped off with realized capital gains.  Although the Declaration of Trust requires that the Fund pay out 100% of income earned and 100% of realized capital gains, these levels are anticipated in advance and the distribution is set appropriately to provide a smooth monthly payout.  The distribution level is reviewed on a regular basis and a number of key factors are considered when making the monthly distribution decision.  The primary objective is to maintain a stable monthly distribution for Unitholders, while ensuring asset value is maximized, risk is minimized and the Fund is sustainable for the long term.

• What is the redemption feature and how does it work?

  The EnerVest Diversified Income Trust has a voluntary annual capped redemption feature whereby unitholders may redeem up to 10% of the aggregate outstanding units of the fund at 95% of the average net asset value, based on the three trading days prior to the redemption date, less direct costs.

  For further information regarding EIT.UN’s redemption Privilege, please click here or go to the Annual Information Form.

• What is the ex-Distribution Date?

  The ex-distribution date refers to the day on or after which new units purchased will not receive that month’s distribution.  As the record date for each distribution is the last trading day of each month, the ex-distribution date is two days prior to the record date.  This is in line with trade settlement rules, which require trade plus three days to become an actual unitholder.  Investors are encouraged to consult with their investment advisor for a full understanding of trade settlements.

• Do you provide an estimate on my tax breakdown, including return of capital?

  As we need to wait until all of the relevant tax data is received from the portfolio companies and a tax analysis is performed, Canoe is unable to provide an estimate prior to releasing the full information. Canoe issues a news release in early March containing the full tax breakdown of distributions for that year.  To view historical tax information, please click here.

• What is my adjusted cost base for tax purposes?

  Canoe is not able to calculate this information for investors.  Please consult with your investment advisor or go to ACB Tracking, a fee based service provider that can help.

• I am a non-resident of Canada – how much withholding tax will be deducted?

  Canadian domestic law requires 25% tax to be withheld on payments made to non-residents.  In certain circumstances this 25% withholding rate may be reduced by Canada’s bilateral tax treaties for certain kinds of payments to residents of those countries with a bilateral tax treaty.  Investment advisors are responsible for assessing the withholding tax requirements on distributions from the funds based upon the residency of the recipient.

• What is EIT’s Value Enhancement Plan (VEP)?

  The VEP is a series of strategic and operating initiatives for EIT designed to increase long-term, sustainable value for the benefit of all EIT unitholders.

  The initiatives are:

  • The addition of the voluntary annual capped redemption feature to provide additional flexibility to unitholders by offering an alternative method of disposing of units in addition to selling them on the TSX.
  • The ability for EIT to split or consolidate units, which occurred in April 2009 on a three for one basis, to allow the Manager flexibility to ensure that the trading price per unit of EIT is optimal in the market for unitholders to make purchases.
  • To amend investment management restrictions, to provide additional flexibility for EIT to meet its overall investment objectives by allowing it to invest in a broader range of investments and utilize other investment opportunities.

  The VEP was announced in February 2009 and a Special Meeting was held whereat Unitholders overwhelmingly voted in favour of all resolutions.

DRIP

• What is the Distribution Reinvestment Plan (DRIP) and Optional Cash Purchase Program (OCPP)?

  Unitholders of the EnerVest Diversified Income Trust may elect to have their monthly cash distributions automatically reinvested into new units of the Fund by participating in the Distribution Reinvestment Plan (DRIP).  Participants are also eligible to make additional purchases of up to $1,000 per month under the Optional Cash Purchase Program (OCPP).  Participants do not pay any costs associated with these features.  Both the DRIP and OCPP allow unitholders to dollar cost average their investment in the Fund which should improve their total return.

  Highlights of the Plans

  • No brokerage fees or commissions;
  • Monthly purchases allow for dollar cost averaging of your investment;
  • Ease and benefits of automatic reinvestment compounding;
  • Unitholders will receive statements for their account each quarter.

  Units of the Fund purchased pursuant to the DRIP or OCPP may be purchased from the TSX or from treasury. Units purchased from treasury will be at a price equal to the lesser of the weighted average price and the net asset value on the relevant distribution date, and will be credited to the participant’s account.  Registered unitholders, those who hold a physical unit certificate in their name, should contact Alliance Trust Company at 403-237-6111 to participate.  Any non-registered unitholder wishing to participate in the DRIP or OCPP should contact their investment advisor.

• When will I see new units in my account from the DRIP distribution?

  If you hold your units in your brokerage account, please consult with your investment advisor for full details on when your account should reflect these new units.  It is expected, however, that DRIP units should be credited to your account usually about the 15th day of the month.