TORONTO, Dec. 20 /CNW/ - Jovian Capital Corporation ("Jovian") (JOV:TSX) and its subsidiary AlphaPro Management Inc. ("AlphaPro") are pleased to announce the closing of the initial public offering of 4.6 million Class A units and approximately 0.4 million Class F units of the Horizons Gold Yield Fund (the "Fund"), for gross proceeds of more than $50.3 million. The Class A units are listed for trading on the Toronto Stock Exchange ("TSX") under the symbol HGY.UN. The Fund has also granted the agents an over-allotment option to acquire additional Class A units exercisable at any time during the next thirty days.
The Fund is expected to automatically convert into an actively managed exchange traded fund ("ETF") by no later than July 30, 2012.
The Fund's investment objectives are to provide holders of Units with: (i) exposure to the price of gold bullion hedged to the Canadian dollar, less the Fund's fees and expenses; and (ii) tax-efficient monthly distributions, initially expected to be $0.0542 per Unit ($0.65 per annum to yield 6.5% on the issue price of $10.00 per Unit). It is initially expected that monthly distributions received by investors will consist primarily of return of capital.
The Fund was created to offer investors a low cost exposure to the price of gold bullion, while providing monthly, tax-efficient distributions. The Fund will seek to achieve its investment objectives by using the net proceeds of the offering to gain exposure to a portfolio consisting of securities and other instruments that provide exposure to the price of gold bullion (the "Gold Portfolio"). The Gold Portfolio will be managed by JovInvestment Management Inc. (the "Portfolio Manager"). The Portfolio Manager intends to write at-the-money covered call options on approximately, and not more than, 33% of the securities in the Gold Portfolio. The Portfolio Manager will not manage the call option writing strategy to achieve a specific target return, but will manage it to generate attractive option premiums that temper the volatility associated with owning a portfolio of securities that provide exposure to the price of gold bullion
"We are extremely pleased with the response to our latest offering from Horizons AlphaPro as we believe gold has been one of the best asset classes to be invested in over the last decade," said Ken McCord, President of AlphaPro. "The Horizons Gold Yield Fund offers a strategy that allows investors to receive the benefits of exposure to gold bullion, while at the same time earning a tax-efficient monthly yield."
AlphaPro is the manager and trustee of the Fund and its affiliate JovInvestment Management Inc. is the investment manager of the Fund, responsible for implementing the Fund's investment strategies.
The syndicate of agents for the offering is being led by BMO Capital Markets, CIBC and National Bank Financial Inc. and includes, RBC Capital Markets, Scotia Capital Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., GMP Securities L.P., Raymond James Ltd., Dundee Securities Corporation, Mackie Research Capital Corporation, Macquarie Private Wealth Inc., MGI Securities Inc., Rothenberg Capital Management Inc. and Wellington West Capital Markets Inc.
The Fund (HGY.UN:TSX) has closed the offering of its initial units and will begin trading on the Toronto Stock Exchange when the market opens this morning.
Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Fund. The Fund is not guaranteed, its value will change frequently and past performance may not be repeated. 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 the agents above. Investors should read the prospectus before making an investment decision.
About AlphaPro Management Inc. (www.HAPETFs.com)
AlphaPro is an innovative financial services company specializing in actively managed exchange traded funds with assets under management of approximately $475 million in AUM million as of November 30, 2010. AlphaPro is a subsidiary of BetaPro Management Inc. ("BetaPro"). BetaPro is Canada's largest provider of leveraged, inverse leveraged and inverse ETFs. BetaPro manages approximately $2.4 billion in assets as of November 30, 2010. BetaPro is a subsidiary of Jovian Capital Corporation.
About Jovian Capital Corporation
Jovian acquires, creates and grows financial services companies specializing in wealth and asset management. The Jovian group of companies (AlphaPro Management Inc., BetaPro Management Inc., Horizons Exchange Traded Funds Inc., Horizons Funds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI Financial Inc., MGI Securities Inc., MGI Securities (USA) Inc. and T.E. Wealth) manages approximately $12.5 billion of client assets ($7.5 billion in assets under management and $5 billion in assets under administration). Additional information is available at www.joviancapital.com and www.sedar.com.
For further information: For further information:
Philip Armstrong, Chief Executive Officer, Jovian Capital Corporation, (416) 933-5752; or
Don Sangster, Investor Relations, Jovian Capital Corporation, (416) 933-5744.