Connor, Clark & Lunn Capital Markets Inc. reports that a preliminary prospectus for Connor, Clark & Lunn Risk-Managed Energy Fund has been filed with the Canadian securities regulatory authorities for an initial public offering of Class A and F units of the fund.

The Fund’s investment objectives are to: preserve and enhance the net asset value per unit of the fund; and to provide unitholders with a stable stream of monthly cash distributions initially targeted to be 3.3¢ per unit (representing a yield of approximately 4% per year on the issue price of $10 per unit).

The net proceeds of the offering will be invested in an energy portfolio of equity securities of the 12 largest issuers by market capitalization included in the S&P/TSX capped energy index.

The fund will employ a risk management strategy designed to protect the net asset value of the fund from a significant decline in value while allowing the fund to benefit to a significant degree from the capital gains potential of these securities. The risk management strategy involves purchasing put options and selling call options on the energy portfolio and selling call options on the individual securities held in the energy portfolio.

Connor, Clark & Lunn Capital Markets Inc. has been retained to act as manager of the fund and is responsible for the management and administration of the fund. The CC&L Capital Markets has managed option writing strategies since 2001 and has acted as an investment advisor for funds that have raised over $750 million through the use of such strategies.

The units are being offered for sale by a syndicate of agents led by CIBC World Markets Inc., Scotia Capital Inc., and RBC Dominion Securities Inc. and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Richardson Partners Financial Limited, HSBC Securities (Canada) Inc., Wellington West Capital Inc., Berkshire Securities Inc., Dundee Securities Corp., GMP Securities L.P., Raymond James Ltd., Blackmont Capital Inc., Canaccord Capital Corp. and Desjardins Securities Inc.