TORONTO, April 15 /CNW/ - O'Leary Funds Management LP is pleased to announce that on April 14, 2010, the O'Leary BrIC-Plus Income & Growth Fund (the "Fund") successfully issued an additional 160,592 Trust Units and 160,592 Warrants pursuant to the exercise by the Agents of their Over-Allotment Option. Total gross proceeds are now $175,927,104. The Units issued at closing, together with the Units issued pursuant to the Over-Allotment Option, have separated into Trust Units and Warrants and now trade on the Toronto Stock Exchange independently under the symbols: OBF.un and OBF.wt, respectively.
The initial monthly cash distribution of $0.05 per Trust Unit is anticipated to be payable on May 14, 2010 to Unitholders of record on April 30, 2010. Additionally, each Warrant entitles the holder to purchase one Trust Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on June 30, 2011.
The Fund has been created to invest in publicly-traded dividend-paying equity securities, preferred shares, convertible debt securities and corporate bonds of issuers having market capitalizations of at least $1 billion, and having significant operations or sales in major emerging markets such as Brazil, Russia, India and China, as well as other rapidly developing countries such as Taiwan, South Korea, Australia, Mexico and others.
Stanton Asset Management Inc. (the "Portfolio Advisor") believes that a shift in the leadership of the global economy is accelerating, with major developing economies outside the G-7 countries participating significantly in the current global economic recovery. Based on the IMF's world economic outlook, major emerging markets such as Brazil, Russia, India, Mexico and others are generally expected to experience superior economic growth relative to developed markets in North America, Europe and Japan. The Portfolio Advisor believes that investors should gain exposure to these markets through a balanced approach in order to maximize the potential for long-term gains while diversifying portfolio risk.
On or before April 1, 2012, the Fund will become an open-ended mutual fund, the Trust Units of the Fund will be delisted and the Trust Units will become redeemable at their net asset value per Trust Unit on a daily basis.
The Fund's investment objectives are to:
(i) maximize total return for holders of Trust Units ("Unitholders"),
consisting of distributions, interest and dividend income and
capital appreciation; and
(ii) provide Unitholders with monthly distributions initially targeted
to be $0.05 per Trust Unit ($0.60 per annum representing an annual
cash distribution of 5% based on the $12.00 per Unit issue price).
The syndicate of agents was co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, Scotia Capital Inc., National Bank Financial Inc., Canaccord Financial Ltd., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Dundee Securities Corporation, GMP Securities L.P., Raymond James Ltd., Wellington West Capital Markets Inc., Desjardins Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated, MGI Securities Inc. and Paradigm Capital Inc.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect O'Leary Funds Management LP'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 O'Leary Funds Management LP 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. O'Leary Funds Management LP 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.
All capitalized terms noted herein but not defined are as per the prospectus dated February 24, 2010.
SOURCE O'Leary Funds Management LP
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