Mississauga, Ont.-based Excel Funds Management Inc. said Friday Excel Latin America Bond Fund II has completed its domestic initial public offering for gross proceeds of approximately $50.4 million.

The Class A units began trading Friday on the Toronto Stock Exchange (TSX:ELB.UN).

Class F units are available for fee-based accounts, and Class U units are available for investors wishing to make their investment in U.S. dollars. The Class F and U units will not be listed on a stock exchange but will be convertible into Class A units on a monthly basis.

The fund will invest in a diversified portfolio consisting mainly of U.S. dollar denominated high yield fixed income securities issued by companies located in Latin America. It will hedge substantially all of the value of the portfolio attributable to the Class A and F units to the Canadian dollar.

The fund intends to make monthly distributions to unitholders; the distributions are initially targeted to be 7.80% per unit per year ($0.78 per year for Class A and Class F units, and US$0.78 for Class U units).

Excel Funds, the fund’s manager, and Excel Investment Counsel Inc., the fund’s portfolio manager, are part of the Excel Funds group, a Canadian pioneer in emerging market mutual fund investing, which manages 12 other investment funds focused on the emerging markets.

Brazil-based BTG Pactual will act as sub-advisor in connection with the selection, purchase and sale of portfolio securities and other assets of the portfolio. BTG Pactual is one of Latin America’s leading independent asset managers and had over U.S.$65 billion in assets under management.

The syndicate of agents for the offering was co-led by BMO Capital Markets, CIBC and RBC Capital Markets and included National Bank Financial Inc., Raymond James Ltd., TD Securities Inc., Desjardins Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Dundee Securities Ltd., Mackie Research Capital Corporation, Macquarie Private Wealth Inc., Manulife Securities Inc., Industrial Alliance Securities Inc. and Sherbrooke Street Capital (SSC) Inc.

The fund has granted the agents an over-allotment option to acquire up to 15% of the Class A units for $10 per unit at any time during the next 30 days.