Connor, Clark & Lunn Capital Markets Inc. Friday annnounced the closing of the domestic initial public offering of North American Financials Capital Securities Trust.

The fund raised gross proceeds of $50,821,500 from the issue of 2 million class A units and 32,860 class F units, at a price of $25.00 per unit.

The fund has granted to the agents of the offering an over-allotment option to acquire an additional 183,340 class A units during the next 30 days. If the over-allotment is exercised in full, the gross proceeds from the offering will be $55,405,000.

The class A units will be listed on the Toronto Stock Exchange under the symbol of NAF.UN. Class F units will not be listed on a stock exchange but may be converted into class A units on a weekly basis.

The fund’s investment objectives are to provide unitholders with attractive tax-advantaged quarterly cash distributions, and return the original issue price of the units upon termination of the fund on Nov. 30, 2014.

Distributions are initially targeted to be $1.50 a year per unit, consisting primarily of returns of capital, yielding a 6% annual return on the unit issue price.

Connor, Clark & Lunn Investment Management Ltd. acts as portfolio manager to the fund.

“The fund will seek to achieve its investment objectives through exposure to an actively managed portfolio consisting primarily of Investment Grade Capital Securities of the six largest Canadian banks, large Canadian insurance companies and U.S. financial institutions with a minimum issuer rating of “A” by S&P,” CC&L said in a release.

The units were offered for sale by a syndicate of agents led by BMO Capital Markets and Scotia Capital Inc., and includes CIBC World Markets Inc., RBC Capital Markets, National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Blackmont Capital Inc., Canaccord Capital Corp., Dundee Securities Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Research Capital Corp. and Wellington West Capital Markets Inc.

IE