CALGARY, April 21 /CNW/ - Aston Hill Financial Inc. ("Aston Hill") through its wholly owned subsidiary, Catapult Financial Management Inc. ("Catapult" or the "Advisor") in conjunction with IA Clarington Investments Inc. (the "Manager") is pleased to announce that IA Clarington Aston Hill Tactical Yield Fund (the "Fund") has completed its initial public offering (the "Offering") of 10 million Units at a price of $10.00 per Unit for aggregate gross proceeds of $100 million.
The Fund portfolio will be actively managed by Aston Hill through its wholly owned subsidiary, Catapult. Ben Cheng, President and Chief Investment Officer of Aston Hill will be the lead portfolio manager responsible for selecting investments in the Fund's portfolio.
The Fund is an investment trust governed by the laws of the Province of Ontario. Each Unit consists of one transferable trust unit (a "Trust Unit") and one Trust Unit purchase warrant (a "Warrant"). The Units will separate into Trust Units and Warrants upon the 30th day following the closing of the Offering. Each Warrant entitles the holder to purchase one Trust Unit at the subscription price of $10.00 per Trust Unit on or before 5:00 p.m. (Toronto time) on April 29, 2011.
The Fund's investment objectives are:
- to provide unitholders with monthly cash distributions, initially
targeted to be 6.0% per Trust Unit per annum on the original offering
price of $10.00 per Unit ($0.05 per Trust Unit per month or $0.60 per
Trust Unit per annum); and
- to maximize total returns for unitholders, consisting of both cash
distributions and capital appreciation, while reducing risk and
The Fund's investment strategy is to invest in an actively managed, diversified portfolio comprised of:
- Canadian common and preferred equity securities and income trust units
that provide a consistent and stable source of current income; and
- fixed income securities, including high yield corporate debt
securities, cash and cash equivalents.
Each of the equity portion and the fixed income portion generally will represent between one-third and two-thirds of the portfolio, with the allocation at any time being determined by the portfolio manager based on its view of market opportunities at the time of investment.
On or before April 30, 2012, the Fund will automatically either:
- convert to an open-ended mutual fund, or
- merge with an open-ended mutual fund on a tax-deferred basis, to be
managed by the Manager or an affiliate of the Manager.
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Financial Ltd., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Industrial Alliance Securities Inc. and Rothenberg Capital Management Inc.
Aston Hill Financial Inc.
Aston Hill is an asset management company with expertise in income products, energy, oil and gas property management and private equity and has offices in Calgary and Toronto. As at April 20, 2010, Aston Hill had over $1.9 billion in assets under management. Revenues of Aston Hill for Q1 2010 are estimated to be $1.6 million representing a 106% increase over revenues in Q1 2009 of $775,000. Aston Hill is listed on the TSX Venture Exchange under "AHF". Catapult Financial Management Inc. is a wholly-owned subsidiary of Aston Hill.
About IA Clarington Investments Inc.
IA Clarington Investments Inc., a subsidiary of Industrial Alliance Insurance and Financial Services Inc., markets a wide range of investment products, including mutual funds and segregated funds managed by leading portfolio advisors. IA Clarington managed more than $8.2 billion in assets as at March 31, 2010.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
Forward-Looking Statements: This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
For a detailed description of the risks and uncertainties facing Aston Hill and its business and affairs, readers should refer to Aston Hill's interim and annual financial statements and management discussion and analysis which are available at www.sedar.com. Aston Hill undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE Aston Hill Financial Inc.
For further information: For further information: Eric Tremblay, Chief Executive Officer, Aston Hill Financial Inc., (403) 770-4817; Ben Cheng, President, Aston Hill Financial Inc., (416) 861-9152