Select Capital Corp. announced on Friday that Sentry Select China Fund has closed its initial public offering.
At the closing, the fund issued eight million units for total gross proceeds of $80 million. The agents have been granted an over-allotment option to purchase up to 1.2 million units at any time during the next 30 days.
The fund units began trading on the Toronto Stock Exchange n Friday under the symbol CHZ.UN. It has been designed to provide investors with an actively managed, diversified portfolio of equity securities of companies that carry on the majority of their business in China.
The fund’s investment objectives are to provide a total return for unitholders and to pay quarterly cash distributions (initially, expected to be $0.125 per quarter, or 5% per annum based on the original price of $10.00 per unit).
The fund will employ an active investment management strategy. HSBC Investments (Canada) Ltd. will be the investment advisor to the fund. The investment advisor will appoint its affiliate, Halbis Capital Management (Hong Kong) Ltd. as the fund’s sub-advisor.
The HSBC sub-advisor will use a combination of “top-down” economic and “bottom-up” stock-selection driven investment approaches in combination with sector research, economic fundamental analysis and other global resources exclusively available to the HSBC sub-advisor.
On May 1, 2009, the fund will become an open-end mutual fund, and the units will be de-listed and become redeemable at the net asset value per unit on a daily basis.
The fund will offer a distribution reinvestment plan whereby unitholders may elect to have their cash distributions (net of any applicable withholding tax in the case of a non-resident unitholder) reinvested in additional units of the Fund. After the conversion to an open-end mutual fund, all distributions will automatically be reinvested in units, unless the unitholder requests to receive cash.
The syndicate of agents was co-led by TD Securities Inc., CIBC World Markets Inc. and RBC Capital Markets, and included HSBC Securities (Canada) Inc., BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Canaccord Capital Corporation, Raymond James Ltd., Blackmont Capital Inc., Dundee Securities Corporation, Berkshire Securities Inc., Desjardins Securities Inc., IPC Securities Corporation, Research Capital Corporation and Wellington West Capital Inc.
Sentry Select Capital Corp. closes offering for China fund
At the closing, the fund issued eight million units for total gross proceeds of $80 Million
- By: IE Staff
- April 27, 2007 April 27, 2007
- 09:21