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TORONTO, May 17, 2013 /CNW/ - Scotia Managed Companies Administration Inc. is pleased to announce that Moneda LatAm Growth Fund (the "Fund") has completed an initial public offering (the "Offering") of 3,200,000 Class A Units of the Fund at a price of Cdn.$10.00 per Class A Unit for gross proceeds of Cdn.$32,000,000. The Fund has granted the Agents (as defined below) an over-allotment option to offer up to 15% additional Class A Units on the same terms exercisable in whole or in part at any time during the next thirty days. The Class A Units of the Fund are listed and posted for trading under the symbol MLE.UN.
The Fund is a closed-end investment fund established as a trust under the laws of the Province of Ontario. The Fund's investment objectives are to: (i) provide holders of Units ("Unitholders") with the opportunity for capital appreciation; and (ii) provide Unitholders with stable quarterly distributions, in each case by investing in a diversified portfolio (the "Portfolio") primarily consisting of publicly-listed equity securities, and including up to 20% in fixed income securities, of companies in Latin America ("LatAm").
The Portfolio will be actively managed by Moneda International Inc. (''Moneda'') with a view to generating capital appreciation and income for Unitholders of the Fund. The Portfolio will generally be invested in a diversified portfolio primarily consisting of publicly-listed equity securities of companies Moneda expects to benefit from the consumer, industrial and financial services growth in LatAm, with an initial focus on Brazil, Chile, Colombia, Mexico and Peru. Moneda's primary investment strategy is to perform research-driven, fundamental, bottom-up company analysis supplemented with top-down macroeconomic analysis of Latin American countries and their industry sectors. Using its bottom-up analysis, Moneda selects the companies it considers to be the most attractive risk-adjusted investments in the Latin American region. Based on its macroeconomic views, Moneda will make investment decisions and diversify the Portfolio between countries and industries that it believes will outperform across LatAm.
The Fund has established a distribution policy to pay quarterly cash distributions approximately equal to ¼ of 3% of net asset value ("NAV"), provided the NAV following such distribution would still be in excess of $10.00 per Unit.
The syndicate of agents for the Offering was co-led by Scotiabank, CIBC and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Burgeonvest Bick Securities Limited, Dundee Securities Ltd. and Manulife Securities Incorporated (the "Agents").
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Scotia Managed Companies Administration Inc. undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a Unitholder's investment in the Fund will be returned. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
SOURCE: Moneda LatAm Growth Fund
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