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TORONTO, May 18, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce the closing of the initial public offering of Canadian 50 Advantaged Preferred Share Fund (the "Fund"). The Fund raised total gross proceeds of $65,043,700 from the sale of 2.4 million Class A Units and 201,748 Class F Units, each at a price of $25.00 per Unit. The Fund has granted to the agents an over-allotment option, exercisable for a period of 30 days from the closing date, to purchase an additional 360,000 Class A Units. The Class A Units are listed on the Toronto Stock Exchange ("TSX") under the symbol CPF.UN. Class F Units will not be listed but may be converted into Class A Units on a weekly basis.
The Fund's investment objectives are to provide (i) tax-advantaged quarterly cash distributions consisting primarily of returns of capital; and (ii) low-cost exposure to the total return approximating that of the BMO Capital Markets 50 Preferred Share Index (the "Preferred Share 50 Index"). Based on current estimates and the assumptions set out in the prospectus, the Fund's initial distribution target is expected to be $0.3125 per Unit per quarter representing an initial yield on the Unit issue price of 5.0% 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.
The Preferred Share 50 Index is a market value weighted index created in 1992 to provide a benchmark representing the Canadian preferred share market and includes 50 Canadian preferred share issues that are listed on the TSX which satisfy specific inclusion criteria. Since its inception, the Preferred Share 50 Index has generated an annualized return of 5.62% per year to April 30, 2012.
Connor, Clark & Lunn Capital Markets Inc. will act as manager and portfolio manager of the Fund. The Manager is part of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm. BMO Asset Management Inc. has been retained to manage the Portfolio and is an indirect, wholly-owned subsidiary of the Bank of Montreal.
The Units were offered for sale by a syndicate of agents co-led by BMO Capital Markets, CIBC and RBC Capital Markets, and including Scotiabank, TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Macquarie Private Wealth Inc., Canaccord Genuity Corp., Raymond James Ltd. and Mackie Research Capital Corporation.
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.
please visit www.cclcapitalmarkets.com or contact:
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258