TORONTO, Nov. 12, 2015 /CNW/ - Aston Hill Capital Markets Inc. (the "Manager") announces that it is holding separate special unitholder meetings (the "Meetings") of Australian Banc Capital Securities Trust ("AB Fund"), Canadian Banc Capital Securities Trust ("CB Fund"), Euro Banc Capital Securities Trust ("EB Fund"), HBanc Capital Securities Trust ("HB Fund"), and North American Financials Capital Securities Trust ("NA Fund" and, collectively, the "Funds") to be held on December 17, 2015 commencing at 8:30 a.m. (Toronto time) at 77 King Street West, Suite 2110, Toronto-Dominion Centre, Toronto, Ontario to consider and vote upon an extraordinary resolution to approve a merger of the Funds and all related transactions (the "Merger"), resulting in NA Fund being the continuing fund and AB Fund, CB Fund, EB Fund and HB Fund being the terminating funds (collectively the "Terminating Funds"). It is intended that the Merger will become effective in January 2016.
Each of the Funds were established to provide unitholders with exposure to capital securities ("Capital Securities") which are subordinated capital instruments (excluding common equity) issued by financial institutions that are designed to meet the regulatory capital requirements of the issuer's regulator. The Manager is proposing the Merger as NA Fund and CB Fund currently have the same investment mandate which is the direct investment in, and active management of, a portfolio comprised of Capital Securities issued by Canadian and non-Canadian financial institutions. The mandate of NA Fund is global in scope with a focus on North America. EB Fund has a similar investment mandate focused on Capital Securities issued by European financial institutions that have an investment grade issuer rating. Given the relatively small size of each Fund, the Manager believes that unitholders would benefit from the additional liquidity and scale of a larger fund. The Manager also believes that EB Unitholders would benefit from a broader investment universe and lower fee structure of NA Fund. HB Fund and AB Fund are scheduled to terminate in December 2015 and January 2016, respectively, and including them in the Merger will allow unitholders of those Funds to have an investment in a fund focused on Capital Securities chosen from a broad investment universe. The Merger will apply only to the Class A Units of HB Fund. Class U Units of HB Fund will be redeemed as scheduled on December 30, 2015 and will not be included in the Merger as NA Fund does not offer a U.S. Dollar denominated class of units.
NA Fund will be the continuing fund which means that unitholders of the Funds wishing to participate in the Merger will have an investment in an actively managed global portfolio of Capital Securities with a focus on North America. Upon completion of the Merger, NA Fund will be renamed Global Capital Securities Trust. Connor, Clark & Lunn Investment Management Ltd. ("CC&L") is the portfolio manager of NA Fund. CC&L was founded in 1982 and has approximately $40 billion in assets under management with offices in Vancouver and Toronto. CC&L is part of the Connor, Clark & Lunn Financial Group Ltd. whose affiliates collectively manage approximately $62 billion in financial assets on behalf of institutional and retail clients. The management fee is 0.50% per annum of the applicable net asset value together with a service fee equal to 0.40% per annum of the net asset value attributable to the Class A Units of NA Fund only.
If the Merger is approved by unitholders of the Funds at the Meetings, unitholders who do not wish to be part of the Merger will have the option of redeeming for cash their investment at net asset value as part of a special redemption right which will be granted as part of the Merger. Unitholders can wait until after the results of the Meetings are announced before choosing to exercise the special redemption right. Finally, the Merger is being effected on a tax-deferred rollover basis at the net asset value of each Fund. The Merger is conditional upon the approval of unitholders of the Funds, the Toronto Stock Exchange ("TSX") and applicable securities regulatory authorities for each of the Terminating Funds.
Details regarding the proposed Merger will be contained in a joint management information circular which will be mailed to unitholders of each Fund. The circular will also be posted on the Manager's website and to www.sedar.com.
The Class A Units of Australian Banc Capital Securities Trust are listed on the TSX under the symbol AUZ.UN. The Class A Units of Canadian Banc Capital Securities Trust are listed on the TSX under the symbol CSB.UN. The Units of Euro Banc Capital Securities Trust are listed on the TSX under the symbol EBT.UN. The Class A, Series 1 Units of HBanc Capital Securities Trust are listed on the TSX under the symbol HSC.UN. The Class A Units of North American Financials Capital Securities Trust are listed on the TSX under the symbol NAF.UN.
Aston Hill Capital Markets Inc. is a leading Canadian structured financial products investment firm focused on creating and managing high quality investment vehicles. The Manager is a subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and segregated institutional funds. Aston Hill Financial has offices in Toronto and Halifax.
SOURCE Aston Hill Capital Markets Inc.
For further information: Please contact your financial advisor, call Aston Hill's Sales and Marketing support line at 416-583-2300 (toll-free at 1-800-513-3868), or visit our website at www.astonhill.ca.