TORONTO, Dec. 29 /CNW/ - Middlefield Group, on behalf of INDEXPLUS Dividend Fund ("INDEXPLUS" or the "Fund"), is pleased to announce that it has filed a preliminary prospectus in relation to an initial public offering of Units at a price of $12.00 per Unit.
INDEXPLUS Dividend Fund has been designed to provide investors with low-cost exposure to the Canadian equity income sector through a combination of indexing and active portfolio management. At least 50% and up to 80% of the Fund's assets will be invested in a diversified portfolio of securities which is designed to track, to the extent practicable, the newly created S&P(R)/TSXTM Equity Income Index and the remainder of the Fund's assets will be invested in an actively managed diversified portfolio of high-dividend paying common shares, convertible debentures, preferred shares and other securities.
The Fund's investment objectives are to:
(i) provide holders of Units with high levels of monthly cash
distributions, initially targeted to be 6.5% per Unit per annum
based on the original subscription price (or $0.065 per Unit per
month or $0.78 per Unit per annum); and
(ii) outperform the S&P(R)/TSXTM Equity Income Index on a total return
On a pre-tax equivalent basis, the Fund's yield to investors in 2011 equates to approximately 8.7%, which assumes 100% of distributions to Unitholders are characterized as eligible dividends.
Middlefield Capital Corporation will act as the investment advisor to the Fund and the individuals who will be primarily responsible for managing the portfolio will be Dean Orrico and Robert Lauzon. Dean Orrico is President and Chief Investment Officer of Middlefield Capital Corporation. Robert Lauzon is Managing Director, Western Canada and a Senior Portfolio Manager of Middlefield Capital Corporation.
Individuals investing in INDEXPLUS will have the option of paying for Units by cash or by exchanging securities of issuers listed in the preliminary prospectus. Prospective purchasers under the Exchange Option will be required to deposit their eligible exchange securities prior to 5:00 p.m. (Toronto time) on January 27, 2011 in the manner described in the preliminary prospectus.
The syndicate of agents is being co-led by CIBC World Markets Inc. and RBC Dominion Securities Inc. and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Macquarie Private Wealth Inc., Middlefield Capital Corporation and Wellington West Capital Markets Inc.
S&P and the TSX have not sponsored, endorsed, sold or promoted the Units or the Fund and neither S&P nor the TSX make any representation regarding the advisability of investing in Units of the Fund. S&P has no relationship to the Fund, but the manager of the Fund (or an affiliate thereof) intends prior to closing of this offering to enter into an agreement with S&P relating to the licensing by the Fund of certain trademarks and trade names of S&P and the TSX.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the agents named above. There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
SOURCE INDEXPLUS DIVIDEND FUND
For further information: For further information: please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or at 1.888.890.1868