TORONTO, June 5, 2013 /CNW/ - Aston Hill Asset Management Inc. (the "Manager") is pleased to announce the launch of a new fund called Aston Hill Strategic Yield II Fund ("SY II Fund"). SY II Fund was created to provide a new option for investors looking to access the high yield portfolio managed by Mr. Sandy Liang after Aston Hill Strategic Yield Fund ("SY Fund") was closed for new purchases earlier this year as a result of the Federal Budget changes announced in March. Specifically, the Federal Budget ended the use of a forward purchase or sale agreement (a "Forward Agreement") if entered into or extended on or after March 21, 2013. Forward Agreements have been used by investment funds to obtain exposure to a reference portfolio or asset on a more tax-efficient basis than directly holding the reference portfolio or asset. SY Fund currently has in place a Forward Agreement which provides exposure to the investment returns of Aston Hill Strategic Yield Trust ("SY Trust"). This Forward Agreement was entered into prior to the date of the Budget and will therefore continue to offer current unitholders tax-efficiency until the end of its term on December 9, 2014. For more information on the impact of the Federal Budget, please view our communication released on April 3, 2013 titled Impact of the Federal Budget on Aston Hill Funds Currently Utilizing Forward Agreements.
The newly launched SY II Fund has the same investment objective as SY Fund. Similarly to SY Fund, SY II Fund's investment strategy is to obtain exposure to SY Trust by investing directly in units of SY Trust, but without the use of a Forward Agreement. As both SY Fund and SY II Fund seek to achieve their objective by obtaining exposure to SY Trust, the Manager expects the returns for these two funds to be similar; however, it is important to note that future returns will not be identical as there are different fees and expenses associated with each fund, one of which is the cost of the Forward Agreement utilized by SY Fund.
"Mr. Liang has done an impressive job generating low volatility returns for current investors and, as a result, the Strategic Yield strategy continues to garner significant interest. We are pleased to have launched Aston Hill Strategic Yield II Fund in order to continue to provide investors with access to Mr. Liang's portfolio management expertise," said Michael J. Killeen, President of Aston Hill Asset Management Inc. "Aston Hill currently is managing approximately $2 billion in high yield corporate debt assets and I look forward to being able to provide investors with access to this market," said Mr. Liang.
About Aston Hill
The Manager is a wholly-owned subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. Aston Hill Financial is also engaged in the administration of Argent Energy Trust (TSX: AET.UN). Aston Hill Financial has offices in Calgary, Toronto and Halifax.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
SOURCE: Aston Hill Asset Management Inc.
For further information:
Sales & Marketing Department
Aston Hill Asset Management Inc.