Canadian Fundamental 100 Income Fund today completed its $38 million initial public offering. The fund issued 3.8 million units at $10 per unit.
Claymore Investments, Inc. will be responsible for the management of the fund.
The units began trading today on the Toronto Stock Exchange under the symbol RFI.UN.
Research Affiliates, LLC will act as the fund’s investment advisor. The firm was established in 2002, and has since grown its assets under management to over US$10 billion.
The fund will invest in a diversified portfolio of the top ranked 100 Canadian equity securities, selected and weighted on the basis of Research Affiliates, fundamental index strategy. Fundamental indexation selects and weights its constituents based on four fundamental factors: total cash dividends, free cash flow, total sales and book equity value.
The fund’s investment objectives are to provide unitholders with:
- a stable stream of monthly cash distributions of 5¢ per unit (to yield 6% per year on the issue price of $10 per unit);
- and a total return that generally outperforms an investment in the S&P/TSX composite index.
.
The offering is being 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, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Desjardins Securities Inc., Raymond James Ltd., HSBC Securities Inc., Berkshire Securities, Inc., Blackmont Capital Inc., Canaccord Capital Corp., Dundee Securities Corp., McFarlane Gordon, Inc., Richardson Partners Financial Ltd. and Wellington West Capital Inc.
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$12.4 billion in assets.