/Not for Distribution to U.S. Newswire Services or for Dissemination in the United States of America./
TORONTO, July 6, 2012 /CNW/ - Scotia Managed Companies Administration Inc. is pleased to announce that Moneda LatAm Fixed Income Fund (TSX: MLF.UN) (the "Fund") has completed the issuance of 280,000 Class A Units of the Fund for gross proceeds of Cdn.$2,800,000. The issuance was pursuant to the exercise of the over-allotment option granted to the agents in connection with the Fund's recently completed treasury offering. With the exercise of the over-allotment option, total gross proceeds raised by the Fund are Cdn.$46,300,000 and U.S.$4,409,700.
The Fund is a closed-end investment fund established as a trust under the laws of the Province of Ontario. The Fund's investment objectives are to: (i) preserve and enhance the net asset value of the Fund; and (ii) provide Unitholders with quarterly tax-advantaged distributions consisting primarily of returns of capital, in each case through exposure by virtue of a forward agreement to a diversified portfolio ("Portfolio") consisting primarily of U.S. dollar-denominated high yield fixed income securities of companies in Latin America ("LatAm").
The Portfolio will be actively managed by Moneda International Inc. (''Moneda'') who will seek both income and capital appreciation for the Portfolio. Moneda's primary investment strategy is to perform bottom-up company analysis supplemented with top-down macroeconomic analysis of Latin American countries and their industry sectors. Using its bottom-up analysis, Moneda selects the companies it considers to be the most attractive risk-adjusted investments in the LatAm region. Based on its macroeconomic views, Moneda will make investment decisions and diversify the Portfolio between countries and industries that it believes will outperform across Latin America.
The Fund intends to make quarterly cash distributions to Unitholders initially estimated to be Cdn.$0.1875 per Class A Unit and U.S.$0.1875 per Class U Unit (Cdn.$0.75 and U.S.$0.75 per annum, respectively) representing an annual yield of 7.50% on the issue price. It is expected that the quarterly distributions received by Unitholders will be characterized primarily as returns of capital and capital gains for tax purposes. The initial cash distribution is anticipated to be payable on October 15, 2012, to Unitholders of record on September 28, 2012.
The syndicate of agents for the offering was co-led by Scotiabank, CIBC and RBC Capital Markets and includes National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Dundee Securities Ltd., Manulife Securities Incorporated and Union Securities Ltd. (the "Agents").
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect 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 and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Scotia Managed Companies Administration Inc. undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholders investment in the Fund will be returned. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. The press release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.