Current Income Shares to Combine Into HighMark Bond Fund.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Aug. 9, 2001 Current Income Shares Inc. (NYSE NYSE See: New York Stock Exchange : CUR), a $46 million closed-end closed-end adj. Issuing a fixed number of shares that can be traded publicly but are not redeemable by the issuer: a closed-end investment company. bond fund managed by HighMark Capital Management Inc. today entered into a non-binding letter of intent agreeing in principle to combine into the HighMark Bond Fund, an open-end fund Open-End Fund A mutual fund that continues to sell shares to investors, and will buy back shares when investors wish to sell. Notes: Open-end funds have no limit to the number of shares they can issue. The majority of mutual funds are open end. with assets of approximately $550 million. HighMark Bond Fund is part of HighMark Funds, a $10 billion mutual fund group also managed by HighMark Capital Management Inc. If the combination occurs as described in the letter of intent, the shareholders of Current Income Shares will receive Class A Shares of the HighMark Bond Fund in exchange for their shares of Current Income Shares, valued on a relative net asset value basis at the time of the exchange. The transaction is expected to be completed in the first quarter of 2002 and is subject to the negotiation and execution of a definitive agreement and plan of reorganization, approval by shareholders of Current Income Shares and other conditions. As a closed-end fund Closed-end fund An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-end fund. , shares of Current Income Shares have traded at a discount to their net asset value (52-week average of approximately 10 percent). If completed, the transaction would immediately eliminate any discount to net asset value. Further, in combining Current Income Shares with the much larger HighMark Bond Fund, the transaction would offer shareholders greater diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , lower expenses and a broader range of investment options through the HighMark Funds family. |
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