Faircourt Split Trust to Undergo Wind-Up Process
Faircourt Asset Management Inc., the manager and trustee of Faircourt Split Trust (NEO: FCS.UN), has announced its decision to terminate the trust on November 30, 2023, or as soon as possible thereafter. The termination is deemed to be in the best interests of the trust's unitholders due to the limited liquidity of the trust's units resulting from annual redemptions over the past decade.
Termination Process and Distribution
In accordance with the trust's second amended and restated declaration of trust, the manager has the discretion to terminate the trust without the approval of unitholders if it deems it to be in their best interests. Following the conversion of the trust's assets to cash and the settlement of all known liabilities and obligations, the proceeds will be distributed among the unitholders on a pro rata basis. Any remaining securities or property that cannot be liquidated prior to the termination date will be distributed to unitholders in specie, subject to compliance with applicable securities laws.
For more information on the Faircourt Split Trust and other Faircourt Funds, please visit www.faircourtassetmgt.com or contact 1-800-831-0304.
In conclusion, the decision to wind up the Faircourt Split Trust reflects the manager's assessment of the trust's limited liquidity and the best interests of its unitholders. The termination process will involve the conversion of assets to cash and the equitable distribution of proceeds among unitholders.
Implications of Faircourt Split Trust's Wind-Up Process for New Businesses
The decision by Faircourt Asset Management Inc. to terminate the Faircourt Split Trust could have significant implications for new businesses, particularly those in the financial sector.
Understanding Market Liquidity
The termination, driven by the limited liquidity of the trust's units due to annual redemptions over the past decade, underscores the importance of understanding and managing market liquidity. For new businesses, particularly those dealing with financial instruments, this serves as a crucial reminder of the potential risks associated with limited liquidity and the need for effective risk management strategies.
Learning from the Termination Process
The termination process also offers valuable insights into asset management and distribution. The conversion of assets to cash, settlement of liabilities, and distribution of proceeds among unitholders are all critical steps that new businesses, especially in the financial sector, can learn from.
In conclusion, while the wind-up of the Faircourt Split Trust is a specific event, it provides broader lessons for new businesses. Understanding the dynamics of market liquidity and the complexities of asset management can help these businesses navigate potential challenges and build more robust operations.