Excel Funds Management Inc. today announced that a preliminary prospectus for the initial public offering of units of Excel India Trust, at a price of $10 per unit, has been filed with the securities regulatory authorities across Canada.
The trust is designed to provide investors with exposure to an actively managed portfolio consisting primarily of equity securities of Indian companies. This exposure will be achieved through a structure designed to minimize Indian withholding taxes on capital gains and avoid certain investment restrictions that would otherwise apply to foreign investors investing in India.
The portfolio will be managed by Birla Sun Life Asset Management Company Ltd., a Mumbai-based investment manager that will employ a long-term approach to investing which is based on identifying companies in India that have sound creditworthiness, quality management, are fundamentally strong and have suitable risk controls.
The trust’s investment objectives are: to provide unitholders with quarterly distributions (initially targeted to be 12.5¢ a Unit per quarter, or 5% per year based on the offering price of $10 per unit); and long-term capital appreciation.
The syndicate of agents for this offering is being co-led by CIBC World Markets Inc. and RBC Dominion Securities Inc., and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corp., Dundee Securities Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Desjardins Securities Inc., Berkshire Securities Inc., Blackmont Capital Inc., IPC Securities Corp., Richardson Partners Financial Limited and Wellington West Capital Inc.
Excel Funds Management Inc. is a specialized fund management company that focuses exclusively on investment opportunities in emerging markets.