How might the buyback influence the Fund's dividend policy and its attractiveness to income-focused investors?

The one‑year NCIB will strip a steady stream of cash from the fund and apply it to buying its own units on the market. By reducing the share base, the fund can either keep the total dollar distribution unchanged and raise the dividend per unit (or per share), or it can preserve the per‑unit payout and let the absolute dividend amount drift lower while still boosting the on‑price yield because the market price is squeezed by the buy‑back‑driven demand. In practice most dividend‑focused funds keep the distribution ratio steady, so the net effect is a modest uplift to the per‑unit dividend and a tighter supply of units that tends to support a higher price‑to‑earnings (or price‑to‑distribution) multiple.

For income‑oriented investors, the NCIB therefore signals that the fund’s management believes cash flow is strong enough to service both a share repurchase and a maintained (or modestly increased) dividend. That confidence often translates into a more attractive yield profile, especially in a low‑rate environment, and can draw a fresh inflow of yield‑seekers willing to pay a premium for the upgraded payout. From a trading standpoint, the announcement creates a short‑term buying catalyst: open‑market demand for the units is likely to rise as institutional and retail investors position for the anticipated yield lift, while the reduced float can generate a technical “tight‑supply” bounce.

Actionable take‑away:

- Long‑duration exposure may be warranted if you are a yield‑focused investor; the fund’s dividend per unit could edge up as the NCIB progresses, enhancing total return.

- If you are already a holder, monitor the fund’s quarterly distribution announcements; a higher per‑unit dividend or a sustained yield on a rising price will validate the buy‑back’s upside.

- Short‑term traders can consider entering on the pull‑back after the NCIB announcement, targeting a technical bounce as the market digests the reduced share supply and the dividend‑enhancement narrative. Keep an eye on any change in the fund’s payout ratio, as a cut would quickly offset the attractiveness to income investors.