Toronto-base Scotia Managed Companies Administration Inc. said Friday that Moneda LatAm Fixed Income Fund has filed a final prospectus in connection with a follow-on public offering of units with a maximum offering size of $75 million.
The fund is offering Class A units (TSX:MLF.UN) at $10.61 per unit and Class U units US$10.58 per unit.
The offering is expected to close on February 6, 2013.
Class A units trade on the Toronto Stock Exchange under the symbol MLF.UN. Class U units are for investors making their investment in U.S. dollars and are not listed but may be converted into Class A units on a weekly basis.
The closed-end investment fund’s aims to provide unitholders with quarterly tax-advantaged distributions consisting primarily of returns of capital, in each case through exposure by virtue of a forward agreement to a diversified portfolio consisting primarily of U.S. dollar-denominated high yield fixed income securities of companies in Latin America.
The portfolio is actively managed by Chilean money manager Moneda International Inc. Moneda’s primary investment strategy is to perform bottom-up company analysis supplemented with top-down macroeconomic analysis of Latin American countries and their industry sectors.
The fund’s current quarterly distribution target is 0.1875 per Class A unit and US$0.1875 per Class U unit ($0.75 and US$0.75 per year, respectively) representing an annual yield of 7.07% on Class A units and 7.09% on the Class U units.
The syndicate of agents for the Offering is being co-led by Scotiabank, CIBC and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Burgeonvest Bick Securities Ltd., Dundee Securities Ltd. and Manulife Securities Inc.