/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, March 29, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce that a preliminary prospectus for Canadian 50 Advantaged Preferred Share Fund (the "Fund") has been filed with the securities regulatory authorities of all the Canadian provinces and territories for an initial public offering of Class A Units and Class F Units (the "Units") of the Fund. The Fund is a closed-end investment fund established under the laws of the Province of Ontario which proposes to offer Units at a price of $25.00 per Unit.
The Fund's investment objectives are to provide (i) tax-advantaged quarterly cash distributions consisting primarily of returns of capital; and (ii) low-cost exposure to the total return approximating that of the BMO Capital Markets 50 Preferred Share Index (the "Preferred Share 50 Index"). Based on current estimates and the assumptions set out in the preliminary prospectus, the Fund's initial distribution target is expected to be $0.3125 per Unit per quarter representing an initial yield on the Unit issue price of 5.0% per annum, consisting primarily of returns of capital which are not immediately taxable but which reduce a Unitholder's adjusted cost base of its Units.
The Preferred Share 50 Index is a market value weighted index created in 1992 to provide a benchmark representing the Canadian preferred share market and includes 50 Canadian preferred share issues that are listed on the Toronto Stock Exchange which satisfy specific inclusion criteria.
Connor, Clark & Lunn Capital Markets Inc. will act as manager and portfolio manager of the Fund. The Manager is part of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm. BMO Asset Management Inc. will be retained to manage the Portfolio and is an indirect, wholly-owned subsidiary of the Bank of Montreal.
Prospective purchasers may purchase Units either by (i) cash payment or (ii) an exchange of freely tradeable securities of any Exchange Eligible Issuer. Prospective purchasers under the Exchange Option are required to deposit securities of Exchange Eligible Issuers prior to 5:00 p.m. (Toronto time) on April 24, 2012, such deposits to be made through CDS. However, CDS Participants may have an earlier deadline for receiving instructions from their clients to deposit securities into the Exchange Option.
The Units are being offered for sale by a syndicate of agents co-led by BMO Capital Markets, CIBC and RBC Capital Markets, and including Scotiabank, TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Macquarie Private Wealth Inc., Canaccord Genuity Corp., Raymond James Ltd. and Mackie Research Capital Corporation.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the above-mentioned agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
For further information:
please visit www.cclcapitalmarkets.com or contact:
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258