/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Nov. 18, 2011 /CNW/ - Connor, Clark & Lunn Capital Markets Inc.
(the "Manager") is pleased to announce that a preliminary prospectus
for Low Volatility Canadian Income Fund (the "Fund") has been filed
with the securities regulatory authorities of all the Canadian
provinces and territories for an initial public offering of Units of
the Fund. The Fund is a closed-end investment fund established under
the laws of the Province of Ontario which proposes to offer Units at a
price of $10.00 per Unit.
The Fund has been created to invest in an equally-weighted portfolio
comprised of the 30 equity securities which have the lowest volatility
of those securities included in the S&P/TSX Composite Index that have a
minimum specified current yield at the time of investment. The Manager
will write covered call options from time to time on up to 25% of the
Portfolio in order to seek to earn income from option premiums to
supplement the dividends and distributions generated by the Portfolio
and to further decrease the overall volatility of returns associated
with the Portfolio Securities.
The Fund's investment objectives are to provide Unitholders with: (i)
stable monthly distributions; (ii) the opportunity for capital
appreciation; and (iii) an investment in a portfolio of Canadian equity
securities that exhibit low volatility of returns. Based on current
estimates and the assumptions set out in the preliminary prospectus,
the Fund's initial distribution target is expected to be $0.05 per Unit
per month, representing an initial yield on the Unit issue price of
6.0% per annum.
Connor, Clark & Lunn Capital Markets Inc. will act as Manager of the
Fund. The Manager is also the manager of a variety of funds and is part
of the Connor, Clark & Lunn Financial Group, a multi-boutique asset
Prospective purchasers may purchase Units either by (i) cash payment, or
(ii) an exchange of freely tradeable securities of any Exchange
Eligible Issuer. Prospective purchasers under the Exchange Option are
required to deposit securities of Exchange Eligible Issuers prior to
5:00 p.m. (Toronto time) on December 6, 2011.
The Units are being offered for sale by a syndicate of agents co-led by
BMO Capital Markets, CIBC and RBC Capital Markets, and including TD
Securities Inc., GMP Securities L.P., National Bank Financial Inc.,
Scotia Capital Inc., HSBC Securities (Canada) Inc., Macquarie Private
Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp. and Mackie
Research Capital Corporation.
A preliminary prospectus containing important information relating to
these securities has been filed with securities commissions or similar
authorities in each of the provinces and territories of Canada. The
preliminary prospectus is still subject to completion or amendment.
Copies of the preliminary prospectus may be obtained from any of the
above-mentioned agents. There will not be any sale or any acceptance of
an offer to buy the securities until a receipt for the final prospectus
has been issued.
SOURCE Low Volatility Canadian Income Fund
For further information:
For more information, please visit www.cclcapitalmarkets.com or contact:
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258