Claymore Investments Inc. announced Friday that its Claymore Equal Weight Banc & Lifeco Trust will now be traded as an exchange-traded fund, effective February 6.
The advisor class units will now trade on the TSX under the ticker symbol CEW.A. In addition, common units of the fund have been listed for trading on the TSX under the ticker CEW.
The company says the conversion to an ETF will not change the investment objectives, investment strategy, or investment restrictions of the fund. By converting to an ETF, Claymore is aiming to provide unitholders with benefits such as greater market liquidity, greater portfolio transparency and more efficient trading as the market price of the fund’s units on the TSX should be closer to its intrinsic net asset value, it said in a release.
The fund was a closed-end fund and its advisor class units were offered to the public under a prospectus and issued at the closing of its initial public offering. The prospectus noted that the Fund would automatically convert to an ETF if, after November 15, 2007, the daily weighted average trading price of the advisor class units was greater than a discount of 2% of NAV per unit for a period of 10 consecutive trading days.
The fund has passed this conversion test and has now converted to an ETF. The fund also changed its name from Claymore Equal Weight Banc & Lifeco Trust to Claymore Equal Weight Banc & Lifeco ETF. The required regulatory notice has been provided.
The fund invests, on an equally weighted basis, in common shares of the largest Canadian banks and Canadian life insurance companies.
Cash distributions on advisor class units are expected to be made monthly and are targeted at $0.04167 (or 50¢ per annum), according to Claymore. Cash distributions on common units are expected to be made quarterly based on any dividends received by the fund on the CEW Portfolio, less expenses. As well, these distributions may include capital gains dividends and returns of capital.
Claymore announces fund conversion
Bank and life insurance fund now trading as ETF
- By: IE Staff
- February 10, 2008 February 10, 2008
- 12:25