Brascan Adjustable Rate Trust I Announces Change in Monthly Distribution & Conference Call.TORONTO -- Brascan Adjustable Rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. Trust I (the "Fund" or "BART") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BAO bao (pä·ö), n preciousness, one of the five virtues in Chinese medicine, for which po is responsible. See also po. BAO Basal Acid Output, see there .UN) today announced a change in the monthly distribution of the Fund to $0.1198 per trust unit from $0.145833, representing an annual yield of 5.75% based on the issue price of $25.00 per trust unit. The distribution will be payable on March 15, 2006 to unitholders of record on February 28, 2006. The reason for the change in the monthly distribution is the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. of the U.S. yield curve which has narrowed the spread between BART's cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. and the return on the Fund's investment portfolio. Since the inception of the Fund on August 17, 2005, the Federal Reserve Bank has increased short term interest rates by 100 basis points which caused funding costs to rise at a rate greater than the rise in yield on the Fund's investment portfolio. As a result, there is a reduction in BART's income available for distribution to Unitholders. "The market is currently pricing in the expectation that the Federal Funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. will increase to 4.75% in April, 2006 This has put further upward pressure on interest rates and the shape of the yield curve. We believe the Federal Reserve Bank is approaching the end of its tightening cycle and we expect interest rates to be lower and the yield curve to be steeper towards year-end. A steeper yield curve will increase the interest spread that the Fund earns, which in turn should result in higher distributions to unitholders" commented John Feeney, Managing Director of Hyperion Capital Management, Inc., the investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for the Fund. Brascan Adjustable Rate Trust I is an investment trust established to provide unitholders with exposure to a portfolio primarily consisting of mortgage backed securities (MBS See Mb/sec. MBS - mobile broadband services ) with an actual or implied AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. rating. Brascan Adjustable Rate Management Ltd., an indirect wholly-owned subsidiary of Brookfield Asset Management  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Inc., is responsible for the management of the Fund. The Fund is listed on the TSX under the symbol BAO.UN. For further information, please visit our website at: www.brascanfunds.com This news release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "will" and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Although Brascan Adjustable Rate Trust I believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements or information include: general economic conditions; changes in the Federal Reserve Bank's monetary policy; interest and exchange rates; and availability of mortgage backed securities for inclusion in the Fund's portfolio and other risks and factors described from time to time in the documents filed by the company with the securities regulators in Canada including Brascan Adjustable Rate Trust I Final Prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. under the section "Risk Factors" and in other sections of the Prospectus.
CONFERENCE CALL AND WEBCAST NOTICE FOR BROKERS AND
UNITHOLDERS
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Date: Wednesday, February 22, 2006
Time: 4:00 p.m. (ET)
You are invited to participate in Brascan Funds Conference Call & Webcast on Wednesday, February 22, 2006 at 4:00 p.m. (ET) to discuss the current market outlook and fund update with members of senior management and the investment manager for Brascan Adjustable Rate Trust I (TSX: BAO.UN). To participate in the Conference Call, please dial 1-800-766-6630 toll free in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. approximately 10 minutes prior to the call. For those unable to participate in the Conference Call, a taped rebroadcast will also be available until midnight March 22, 2006. To access this rebroadcast, please call 1-888-509-0081. The webcast will be hosted on www.brascanfunds.com. If you have any questions about the Conference Call, please contact Krista Matheson, Vice President, Structured Products at 416-359-8557 or by email at kmatheson@brookfield.com. Brascan Adjustable Rate Trust I (TSX:BAO.UN) |
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