TORONTO, April 29 /CNW/ - Marquest Canadian Equity Income Fund (the "Fund") announces that it has filed a final prospectus dated April 28, 2011
with the securities regulatory authorities of each of the Canadian
provinces and territories for an initial public offering (the
"Offering") of up to 10,000,000 units (the "Units") at a price of
$10.00 per Unit, for a maximum offering size of $100 million. The
Offering is scheduled to close on May 9, 2011. The Toronto Stock
Exchange (the "TSX") has conditionally approved the listing of the
Units under the symbol "MIF", subject to the fulfillment of TSX
The Fund's investment objectives are to provide holders with:
monthly distributions; and
the opportunity for long-term capital appreciation.
In order to achieve the Fund's investment objectives, the Fund will
invest in a broadly diversified portfolio (the "Portfolio") of the
securities (the "Portfolio Securities") comprising the S&P/TSX Equity
Income Index (the "Index") in approximately the same weightings as in
the Index and may sell covered call options on the Portfolio Securities
from time to time in order to enhance returns and lower the overall
volatility of the Portfolio.
The Fund's initially monthly distribution is expected to be $0.0583 per
Unit (approximately $0.70 per annum, representing an annual cash
distribution of 7.00% based upon the $10.00 per Unit issue price).
The Index is market capitalization weighted and is comprised of 50 to 75
of the highest yielding securities selected from the S&P/TSX Composite
Index with each constituent being capped at 5% of the Index and each
Global Industrial Classification Standard sector being capped at 30% of
the Index. The manager of the Fund, Marquest Asset Management Inc.
("Marquest"), believes that the Index will become the new benchmark for
equity income mandates in Canada and that the securities comprising the
Index will benefit from the positive outlook for the Canadian economy,
which is being driven by the improving prospects of the global economic
Marquest is a private Canadian investment management firm which offers a
diverse range of quality equity and fixed income investment products to
retail and institutional investors.
The syndicate of agents for this offering is being led by Scotia Capital
Inc., CIBC World Markets Inc., and RBC Capital Markets, and includes
BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity
Corp., GMP Securities L.P., HSBC Securities (Canada) Inc., Macquarie
Private Wealth Inc., Raymond James Ltd., Mackie Research Capital
Corporation, Wellington West Capital Markets Inc., Dundee Securities
Ltd., and Union Securities Ltd.
The Offering is made by way of a prospectus dated April 28, 2011. The
prospectus contains important information relating to the Units.
Copies of the prospectus may be obtained from any of the Agents.
Investors should read the prospectus before making an investment
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities of the Fund in the United
"Standard & Poor's®" and "S&P®" are trademarks of Standard & Poor's
("S&P") and have been licensed for use by the Fund. "TSX®" is a
trademark of the TSX, Inc. and has been licensed for use by S&P. The
Fund is not sponsored, endorsed, sold or promoted by S&P or the TSX,
Inc. and neither S&P nor the TSX, Inc. make any representation
regarding the advisability of investing in the Fund.
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "targeted", "may", "will" and similar
expressions to the extent they relate to the Fund. The forward-looking
statements are not historical facts but reflect Marquest's current
expectations regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from current
expectations. Although Marquest believes that the assumptions inherent
in the forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and, accordingly,
readers are cautioned not to place undue reliance on such statements
due to the inherent uncertainty therein. Marquest undertakes no
obligation to update publicly or otherwise revise any forward-looking
statement or information whether as a result of new information, future
events or other such factors which affect this information, except as
required by law.
SOURCE Marquest Asset Management Inc.
For further information:
please call Andrew A. McKay, President, Marquest at 416-777-7312 or Andrew Bentley, Executive Vice President, Marquest at 416-777-7352 or 1-877-777-1451 or visit www.marquest.ca.