TORONTO, Nov. 17, 2011 /CNW/ - Diversified Alpha Fund II (the "Fund") is
pleased to announce the closing of its initial public offering (the
"Offering"). Pursuant to the Offering, the Fund issued 4.8 million of
transferable trust units (the "Units") at $10 per Unit, for gross
proceeds of $48.0 million. The Fund has granted the agents for the
offering an over-allotment option to acquire up to an additional 15% of
units issued at a price of $10 per share exercisable at any time during
the next thirty days. The Units are listed on the Toronto Stock
Exchange under the symbol AFT.UN.
The Fund will provide holders of Units ("Unitholders") exposure to a
diversified portfolio of investments managed by GMP Investment
Management ("GMPIM"). GMPIM will use its proprietary process of capital
allocation and risk management to invest both long and short, across
its four Core Asset Strategies of (i) equities; (ii) credit; (iii)
quantitative (primarily options and futures contracts), and (iv) cash.
The Fund is managed by Propel Capital Corporation ("Propel").
The Fund's investment objectives are to: (i) preserve capital; (ii)
maximize risk adjusted absolute returns while minimizing down-side
volatility; and (iii) provide Unitholders with quarterly,
The distributions are initially targeted to be 6.0% per annum on the
subscription price of $10.00 per Unit ($0.15 per Unit per quarter or
$0.60 per annum). The Fund will not have a fixed distribution amount
but will determine and announce in June and December of each year an
indicative distribution amount for the following two quarters.
The syndicate of agents for this offering is being led by CIBC, GMP
Securities L.P., and RBC Capital Markets, and includes BMO Capital
Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Genuity
Corp., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc.,
Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd
and Manulife Securities Incorporated.
This offering is only made by prospectus. The prospectus contains
important detailed information about the securities being offered.
Copies of the prospectus may be obtained from one of the above-noted
agents. Investors should read the prospectus before making an
SOURCE Diversified Alpha Fund II
For further information:
For further information, please call Raj Lala, President, Propel Capital at 416-572-2364 or visit www.propelcapital.ca