/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Sept. 5, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc.
(the "Manager") is pleased to announce that a preliminary prospectus
for U.S. Agency Mortgage-Backed REIT Advantaged 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 $10.00 per Unit.
The Fund will obtain exposure to a portfolio of the 10 largest publicly
traded U.S. Agency Mortgage REITs by market capitalization. U.S. Agency
Mortgage REITs are REITs which invest primarily in mortgage-backed
securities that are issued or guaranteed by the U.S. government or a
government-sponsored enterprise thereby minimizing their credit risk
associated with the underlying mortgages. U.S. Agency Mortgage REITs
comprising the Portfolio will be weighted based on their market
capitalization, subject to a limit of 25% of the Portfolio being
invested in any one Agency Mortgage REIT, at the time of investment or
rebalancing. The Portfolio will be rebalanced at least semi-annually.
The Fund's investment objectives are to (i) provide tax-advantaged
quarterly cash distributions consisting primarily of returns of
capital; and (ii) provide low-cost exposure to the Portfolio. Based on
current estimates and the assumptions set in the preliminary
prospectus, the Fund's initial distribution target is expected to be
$0.20 per Unit per quarter, representing an initial yield on the Unit
issue price of 8% 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.
Connor, Clark & Lunn Capital Markets Inc. will act as Manager of the
Fund. The Manager is part of the Connor, Clark & Lunn Financial Group,
a multi-boutique asset management firm.
The Units are being offered for sale by a syndicate of agents co-led by
BMO Capital Markets and CIBC, and including Scotiabank, Raymond James
Ltd., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private
Wealth Inc. 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.
SOURCE: U.S. Agency Mortgage-Backed REIT Advantaged Fund
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