Will Horizons Gold Yield Fund (HGY.UN) ever be paying any dividend?

When I first decided to invest in Horizons Gold Yield Fund (HGY.UN), I did it for 2 reasons: because it's a gold investment and also because Horizons had announced, at the time of the public offering, that Horizons Gold Yield Fund (HGY.UN) was going to pay dividend.

I don't know if any Quebeckers of the like of Brian Mulroney are under the management of Horizons Gold Yield Fund (HGY.UN), but it's seemed like Horizons Gold Yield Fund (HGY.UN) had broked their dividend payment promised.

I had invested in Horizons Gold Yield Fund (HGY.UN) using funds available in my margin account. For that specific reason, it's extremely important for me to be able to earn dividend from this investment. The dividend income earn need to exceed the interest own on the money borrowed through margin. My margin interest rate is currently of 4.25%.

Back in November 2010, AlphaPro Management Inc. announced the public offering of Horizons Gold Yield Fund (HGY.UN). This is part of the information provided by AlphaPro Management Inc. in their November 2010 press release:

"TORONTO, Nov. 1 /CNW/ - Horizons Gold Yield Fund (the "Fund") is pleased to announce the filing of a preliminary prospectus in respect to the initial public offering of its Class A and Class F Units (the "Units") at $10.00 per Unit.The Fund's investment objectives are to provide holders of Units with: (i) exposure to the price of gold bullion hedged to the Canadian dollar, less the Fund's fees and expenses; and (ii) tax-efficient monthly distributions, initially expected to be $0.0542 per Unit ($0.65 per annum to yield 6.5% on the issue price of $10.00 per Unit). It is initially expected that monthly distributions received by investors will consist primarily of return of capital.

The Fund was created to offer investors a low cost exposure to the price of gold bullion, while providing monthly tax-efficient distributions. The Fund will seek to achieve its investment objectives by gaining exposure to a portfolio consisting of securities and other instruments that provide exposure to the price of gold bullion (the "Gold Portfolio"). The Gold Portfolio will be managed by JovInvestment Management Inc. (the "Portfolio Manager"). The Portfolio Manager intends to write at-the-money covered call options on approximately, and not more than, 33% of the securities in the Gold Portfolio. The Portfolio Manager will not manage the call option writing strategy to achieve a specific target return, but will manage it to generate attractive option premiums that temper the volatility associated with owning the Gold Portfolio.

The Fund is expected to automatically convert into an ETF by no later than July 30, 2012."

Back in November 2010, Horizons Gold Yield Fund (HGY.UN) had promised a monthly dividend distribution of $0.0542 per unit. This distribution represents a yield of 6.5%, which I find pretty good.

Since Horizons Gold Yield Fund (HGY.UN) completed it's public offering in December 2010, nothing had been announced at dividend distribution. So what's going on? I did my search of course. I took a look here and here. But no trace of Horizons Gold Yield Fund (HGY.UN). So what does it mean?

Different answers are available:

-Some Quebeckers are being the management of Horizons Gold Yield Fund (HGY.UN);

-The dividend will be paid only when Horizons Gold Yield Fund (HGY.UN) will convert into an ETF in July 2012;

and/or
-Horizons Gold Yield Fund (HGY.UN) decided not to pay any dividend at all.

I don't know what to think about Horizons Gold Yield Fund (HGY.UN). I am just getting frustrated about Horizons Gold Yield Fund (HGY.UN) dividend payment situation.