Sentry Select Capital Corp. today announced that Sentry Select Lazard Global Listed Infrastructure Fund has closed its initial public offering.
At the closing, the fund issued 13.5 million units for total gross proceeds of $135 million. The agents have been granted an over-allotment option to purchase up to 2,025,000 units at any time during the next 30 days.
The fund units began trading on the Toronto Stock Exchange today under the symbol GLS.UN.
The fund will be actively managed by Lazard Asset Management LLC and will seek long-term, defensive, low-volatility returns by investing in a globally diversified portfolio of publicly listed global infrastructure companies.
As of September 30, 2006, the Lazard had approximately 173 investment professionals overseeing approximately US$87.7 billion in assets under management, including over US$200 million invested in infrastructure.
The fund\u2019s investment objectives are to: provide a total return for unitholders consisting of interest, dividend income and capital appreciation that will outperform inflation, as measured by the Canadian Consumer Price Index, by 5% per year over rolling five-year periods; pay quarterly cash distributions (initially, expected to be 12.5\u00a2 per quarter, or 5% per year based on the original price of $10 per unit).
From the universe of publicly listed global infrastructure companies, Lazard focuses on a sub-sector it calls \u201cPreferred Infrastructure\u201d, which is comprised of approximately 70 to 100 companies. Lazard believes Preferred Infrastructure companies have the ability to generate higher revenue and profit confidence with lower volatility as these companies typically have the following characteristics: a monopolistic position, a captive customer base, pricing power, high operating margins and low volatility of cash flows. Lazard expects that the portfolio will be made up of 25 to 50 Preferred Infrastructure companies.
On April 1, 2009 the fund will become an open-ended mutual fund, and the units will be delisted and become redeemable at the net asset value per unit on a daily basis.
The fund will offer a distribution reinvestment plan whereby residents of Canada may elect to have their cash distributions reinvested in additional units of the fund. After the conversion to an open-end mutual fund, all distributions will automatically be re-invested in units of the mutual fund, unless the unitholder requests to receive cash.
A syndicate of agents co-led by RBC Dominion Securities Inc. and CIBC World Markets Inc. included: BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., Desjardins Securities Inc., Berkshire Securities Inc., IPC Securities Corporation, Jory Capital Inc., Research Capital Corporation and Wellington West Capital Inc.
As of Jan. 31, 2007, Sentry Select had approximately $8 billion in gross assets under management.<\/p>\n","protected":false},"excerpt":{"rendered":"
IPO raises $135 million<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2318],"tags":[2647],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/301515"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=301515"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/301515\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=301515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=301515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=301515"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=301515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}