A final prospectus has been filed for an initial public offering of units for IA Clarington Aston Hill Tactical Yield Fund, IA Clarington Investments Inc. announced Wednesday.
The offering is expected to close on or about April 19.
The fund aims to provide unitholders with monthly cash distributions, initially targeted to be 6.0% per trust unit per year on the original offering price of $10.00 per unit. That works out to 5 cents per trust unit per month, or 60 cents per trust unit per year.
The fund will be actively managed by Catapult Financial Management Inc., and Ben Cheng will be the lead portfolio manager.
Catapult is a wholly owned subsidiary of Aston Hill Financial Inc. (TSXV: AHF). As at March 1, 2010, Aston Hill had approximately $1.7 billion in assets under management.
The fund’s investment strategy is to invest primarily in Canadian common and preferred equity securities and income trust units and fixed income securities.
Each of the equity portion and the fixed income portion generally will represent between one-third and two-thirds of the portfolio, with the allocation at any time being determined by the portfolio manager based on its view of market opportunities at the time of investment.
The fund’s prospectus qualifies the issuance of units of the Fund at a price of $10.00 per unit. Each unit consists of one transferable trust unit and one trust unit purchase warrant.
The units will separate into trust units and warrants upon the earlier of the closing of the over-allotment option and the 30th day following the closing of the offering.
Each warrant entitles the holder to purchase one trust unit for $10.00 on or before 17:00 ET on April 29, 2011. Warrants not exercised by that date will be void and of no value.
On or before April 30, 2012, the fund will automatically either convert to an open-ended mutual fund, or merge with an open-ended mutual fund on a tax-deferred basis, to be managed by IA Clarington or an affiliate.
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Financial Ltd., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Industrial Alliance Securities Inc. and Rothenberg Capital Management Inc.
IA Clarington Investments Inc. is a subsidiary of Industrial Alliance Insurance and Financial Services Inc.
IE