AlphaPro Management Inc. Tuesday announced the closing of the initial public offering of 2.9 million Class A units and approximately 0.14 million Class F units of the Horizons AlphaPro Fiera Tactical Bond Fund, for gross proceeds of more than $30.4 million.

The Class A units are listed for trading on the Toronto Stock Exchange under the symbol HAF.UN.

The fund is expected to automatically convert into an actively managed exchange traded fund after June 30, 2010 and, in any event, no later than Dec. 31, 2010.

The fund has been created to provide investors with a stable stream of tax-efficient monthly distributions and the opportunity for capital appreciation through exposure to the investment strategies of Candian independent money manager Fiera Capital Inc.

“We are delighted with the response to this third fund offering from Horizons AlphaPro,” said Howard Atkinson, president of AlphaPro, in a release.

“This fund combines exposure to the expertise of Fiera Capital, one of the best fixed income managers in Canada and, after conversion, the benefits of an ETF structure – low cost, intraday liquidity and diversification, as well as the opportunity for stable income,” he added.

The net proceeds of the offering will be used to gain exposure to an actively managed portfolio of exchange traded fund investments that Fiera’s asset allocation team believes will provide the greatest opportunity for generating stable risk-adjusted returns. This will occur through exposure to global fixed income markets, including government treasury securities, corporate bonds and high yield debt securities. Using its proprietary tactical asset allocation process, Fiera will seek to actively manage the duration, credit exposure and risk in the portfolio through its selection of investments from a universe of more than 80 global fixed income ETFs.

“The portfolio will provide risk-adjusted, broad, fixed income diversification in a low cost structure,” said Francois Bourdon, senior v.p., asset allocation and structured fixed income, Fiera Capital Inc.

AlphaPro is the manager and trustee of the fund and its affiliate JovInvestment Management Inc. is the investment manager of the fund, responsible for implementing the fund’s investment strategies. JovInvestment will also engage the services of Fiera.

The syndicate of agents for the offerings was being led by BMO Nesbitt Burns Inc. and CIBC World Markets Inc. and includes National Bank Financial Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., Canaccord Capital Corp., Dundee Securities Corp., Raymond James Ltd., Wellington West Capital Markets Inc., Blackmont Capital Inc., Laurentian Bank Securities Inc., MGI Securities Inc. and Research Capital Corp.

The fund has granted the agents an over-allotment option to acquire additional units exercisable at any time during the next 30 days.

IE