CALGARY, Jan. 25, 2013 /CNW/ - Middlefield Group, on behalf of Global Dividend Growers Income Fund (the "Fund"), is pleased to announce that it has filed a preliminary prospectus in relation to an initial public offering of units at a price of $10.00 per unit.
Global Dividend Growers Income Fund has been designed to provide investors with a low-cost investment in global issuers that have exhibited a history of strong dividend growth.
A portion of the Fund's assets will be invested in an equally-weighted passively managed portfolio consisting of the equity securities of the 20 largest publicly-listed issuers by market capitalization globally which have exhibited cumulative dividend growth of at least 10% over the last five years as well as an indicated dividend yield of at least 3%. The remainder of the Fund's assets will be invested in an actively managed diversified portfolio primarily comprised of global issuers which have exhibited strong dividend growth.
According to Ned Davis Research Inc., between January 1972 through December 2012, dividend growers in the S&P 500 Index have achieved a higher annualized total return of 9.5%, versus 1.6% from non-dividend payers.
The Fund's investment objectives are to:
(i) provide holders of units with stable monthly cash distributions and to grow distributions over time, and
(ii) enhance long-term total return through capital appreciation of the Fund's investment portfolio,
through an investment strategy which combines passive and active portfolio management and entails investing primarily in securities of global, including Canadian and U.S., issuers which have exhibited strong dividend growth.
The initial target distribution yield for the Fund is 6.0% per annum based on the original subscription price (or $0.05 per unit per month or $0.60 per unit per annum).
Prospective purchasers investing in Global Dividend Growers Income Fund will have the option of paying for units in cash or by exchanging securities of issuers listed in the preliminary prospectus. Prospective purchasers under the exchange option will be required to deposit their exchange eligible securities prior to 5:00 p.m. (Toronto time) on February 21, 2013 in the manner described in the preliminary prospectus.
Middlefield Capital Corporation will act as the investment advisor to the Fund.
The syndicate of agents is being co-led by CIBC and RBC Capital Markets and includes Scotiabank, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond James Ltd., GMP Securities L.P., Mackie Research Capital Corporation, Middlefield Capital Corporation and Dundee Securities Ltd.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in all jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the agents named above. 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.
SOURCE: Global Dividend Growers Income Fund
For further information:
Please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or 1.888.890.1868.