TORONTO, July 23, 2013 /CNW/ - Connor, Clark & Lunn Capital Markets Inc.
today declared a cash distribution for Australian Banc Capital
Securities Trust (the "Fund"):
Price Per Unit
Jul. 22, 2013
Australian Banc Capital
Securities Trust (Class A Units
and Class F Units)*
Jul. 31, 2013
Aug. 15, 2013
*Distributions are expected to be characterized as 100% return of
The quarterly distribution rate for the Fund has been lowered from $0.15
to $0.14 per Unit ($0.60 to $0.56 annually). A significant proportion
of the portfolio is invested in Australian bank bonds that float based
upon BBSW, the Australian equivalent to LIBOR. Since the beginning of
2012, the Reserve Bank of Australia (RBA) has decreased their base
lending rate on five occasions for a total drop of 1.5%. The actual
rate has gone from 4.25% to 2.75%.
We have made some changes to the composition of the Fund's investment
portfolio. The RBA has given guidance that they will continue to have
an accommodative stance toward monetary policy, in part due to a desire
to see the Australian dollar drop further in value against other major
currencies. In order to protect against further drops in BBSW and the
Australian dollar, we have lowered the Fund's exposure to floating rate
bonds from about 42% at the end of the first quarter to 21% currently.
We have also lowered the Fund's exposure to Australian dollar
denominated assets from approximately 48% at the end of the first
quarter to 28% today. The rest of the portfolio is invested in US
dollar and British Pound denominated bonds issued by Australian banks
with currency hedged back to the Canadian dollar.
Connor, Clark & Lunn Capital Markets Inc. (CC&L Capital Markets) is a
leading Canadian structured financial products investment firm that is
focused on creating and managing high quality investment vehicles that
will stand the test of time and ultimately allow our clients to achieve
their personal financial goals. Formed in 2001, CC&L Capital Markets
has designed, launched and currently manages sixteen investment
vehicles, raising more than $2 billion in assets.
CC&L Capital Markets is a part of the Connor, Clark & Lunn Financial
Group, a multi-boutique asset management firm whose affiliate companies
are collectively responsible for the management of approximately $46
billion in assets.
SOURCE: Connor, Clark & Lunn Capital Markets Inc.
For further information:
please visit www.cclcapitalmarkets.com or contact:
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
Toll Free: 1-888-276-2258