Low Volatility Canadian Equities Income Fund Closes Initial Public Offering
07 Feb, 2012, 09:00 ET
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Feb. 7, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce the closing of the initial public offering of Low Volatility Canadian Equities Income Fund (the "Fund"). The Fund raised gross proceeds of $30 million from the sale of 3 million Units at a price of $10.00 per Unit. The Fund has granted the agents an over-allotment option exercisable for a period of 30 days from the closing date to offer up to an additional 450,000 Units. The Units are listed on the Toronto Stock Exchange ("TSX") under the symbol LOW.UN.
The Fund has been created to invest in an equally-weighted portfolio comprised of the 30 equity securities which have the lowest volatility of those securities included in the S&P/TSX Composite Index that have a minimum specified current yield at the time of investment. The Manager will write covered call options from time to time on up to 25% of the Portfolio in order to seek to earn income from option premiums to supplement the dividends and distributions generated by the Portfolio and to further decrease the overall volatility of returns associated with the Portfolio Securities.
The Fund's investment objectives are to provide Unitholders with: (i) stable monthly distributions; (ii) the opportunity for capital appreciation; and (iii) an investment in a portfolio of Canadian equity securities that exhibit low volatility of returns. Based on current estimates and the assumptions set out in the final prospectus, the Fund's initial distribution target is expected to be $0.05 per Unit per month, representing an initial yield on the Unit issue price of 6.0% per annum.
Connor, Clark & Lunn Capital Markets Inc. will act as Manager of the Fund. The Manager is also the manager of a variety of funds and is part of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm.
The Units were offered for sale by a syndicate of agents co-led by BMO Capital Markets, CIBC and RBC Capital Markets, and including TD Securities Inc., GMP Securities L.P., National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp. and Mackie Research Capital Corporation.
Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
For further information:
For more 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
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