Diversified Alpha Fund II Completes Initial Public Offering

TORONTO, Nov. 17, 2011 /CNW/ - Diversified Alpha Fund II (the "Fund") is pleased to announce the closing of its initial public offering (the "Offering"). Pursuant to the Offering, the Fund issued 4.8 million of transferable trust units (the "Units") at $10 per Unit, for gross proceeds of $48.0 million. The Fund has granted the agents for the offering an over-allotment option to acquire up to an additional 15% of units issued at a price of $10 per share exercisable at any time during the next thirty days. The Units are listed on the Toronto Stock Exchange under the symbol AFT.UN.

The Fund will provide holders of Units ("Unitholders") exposure to a diversified portfolio of investments managed by GMP Investment Management ("GMPIM"). GMPIM will use its proprietary process of capital allocation and risk management to invest both long and short, across its four Core Asset Strategies of (i) equities; (ii) credit; (iii) quantitative (primarily options and futures contracts), and (iv) cash. The Fund is managed by Propel Capital Corporation ("Propel").

The Fund's investment objectives are to: (i) preserve capital; (ii) maximize risk adjusted absolute returns while minimizing down-side volatility; and (iii) provide Unitholders with quarterly, tax-advantaged distributions.

The distributions are initially targeted to be 6.0% per annum on the subscription price of $10.00 per Unit ($0.15 per Unit per quarter or $0.60 per annum). The Fund will not have a fixed distribution amount but will determine and announce in June and December of each year an indicative distribution amount for the following two quarters.

The syndicate of agents for this offering is being led by CIBC, GMP Securities L.P., and RBC Capital Markets, and includes BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd and Manulife Securities Incorporated.

This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from one of the above-noted agents. Investors should read the prospectus before making an investment decision.

SOURCE Diversified Alpha Fund II

For further information:

For further information, please call Raj Lala, President, Propel Capital at 416-572-2364 or visit www.propelcapital.ca

Profil de l'entreprise

Diversified Alpha Fund II

Renseignements sur cet organisme


Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .


Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.


Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.