MG Dividend & Income Fund has filed a preliminary prospectus in relation to the initial public offering of units of the fund.

The initial indicative yield is 7.5% per annum based upon the original issue price of $10 per unit.

The fund has been designed to provide investors with an attractive level of stable monthly distributions as well as the potential for capital appreciation by investing in a broadly-diversified portfolio of income producing equity securities.

The portfolio is initially expected to be constructed with a 75% allocation to income trusts and a 25% allocation to common shares. The income trust component is focused on the highest quality oil and gas royalty trust, business trust and real estate investment trust issuers, the vast majority of whom have been included in the S&P/TSX Composite Index. The common share component includes those issuers who exhibit strong fundamentals and the potential for an increase in dividend payments.

The objectives of the fund are to pay monthly distributions to unitholders and to enhance the initial value of units through capital appreciation of the Portfolio.

Individuals investing in the fund will have the option of paying for units by exchanging securities of certain specified issuers, subject to the terms and conditions set forth in the prospectus.

Guardian Capital LP and Middlefield Capital Corp. will act as the co-advisors responsible for managing the income trust component of the portfolio, including asset mix and security selection.

Middelfield will determine the asset allocation for the portfolio between income trusts and common stock securities and will be responsible for the selection of common stocks.

With approximately $17.4 billion in assets under management, Guardian provides domestic and global investment management services to mutual funds and institutional investors.

Groppe, Long & Littell, a Houston, Texas based oil and gas consulting firm, will be a special advisor to the fund providing it with an analysis of the global economic and political forces impacting the prices of oil and natural gas. Henry Groppe, the founder of the Special Advisor, will be the individual primarily involved in providing services to the fund. He has over 50 years of experience in the oil, natural gas and petrochemical industries.

The syndicate of agents is being co-led by CIBC World Markets Inc. and RBC Capital Markets, and includes BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corp., Wellington West Capital Inc., Blackmont Capital Inc., Desjardins Securities Inc., Dundee Securities Corp., Raymond James Ltd., Acadian Securities Inc., Berkshire Securities Inc., Middlefield Capital Corp. and Research Capital Corp.

A preliminary prospectus relating to these securities has been filed with securities commissions or similar authorities in all of the provinces of Canada and the Yukon Territory.