Canadian Financial Income Fund has completed its initial public offering of 20,000,000 units at $10 per unit, for gross proceeds of $200 million.
The units began trading today on the Toronto Stock Exchange under the symbol FIE.UN.
The offering was made in each of the provinces and territories in Canada through a syndicate of investment dealers led by RBC Capital Markets and CIBC World Markets Inc., and including BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., First Associates Investments Inc., HSBC Securities Inc., Raymond James Ltd., Wellington West Capital Inc., Berkshire Securities, Inc. and McFarlane Gordon, Inc.
The fund will invest in a diversified and actively-managed portfolio comprised primarily of common shares, preferred shares and corporate bonds and income trust units of issuers in the Canadian financial sector.
The fund’s investment objectives are to:
- maximize total return for investors, consisting of distributions of capital appreciation; and
- provide investors with a stable stream of monthly cash distributions of $0.05 per unit (to yield 6.0% per annum on the original $10.00 issue price)
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The first distribution is scheduled to be paid to unitholders on September 30.
MFC Global Investment Management (Canada), a wholly owned subsidiary of Manulife Financial, is the fund’s investment advisor.
Claymore Investments, Inc. will be responsible for the management of the Fund. Claymore is a wholly owned subsidiary of Claymore Group, LLC, a financial services and asset management company based in the Chicago, Illinois area. Claymore Group entities provide supervision, management, servicing or distribution on approximately US$11.6 billion in assets as of July 31, 2005.