Low Volatility Canadian Equities Income Fund To Trade On Toronto Stock Exchange
Low Volatility Canadian Equities Income Fund (the "Fund") – An application has been granted for the original listing in the Industrial category of up to a maximum of 11,500,000 transferable, redeemable units ("Units") of the Fund, of which up to 10,000,000 Units will be issued and outstanding and up to 1,500,000 Units will be reserved for issuance upon completion of a public offering (the "Offering").
Listing of the Units will become effective at 5:01 p.m. on Monday, February 6, 2012 in anticipation of the Offering closing on Tuesday, February 7, 2012. The Units, other than those which have not been distributed to the public, will be posted for trading at the opening on February 7, 2012.
Registration of interests in and transfers of the Units will be made only through the book-entry only system maintained by CDS Clearing and Depository Services Inc. ("CDS"). Units must be purchased, transferred and surrendered for redemption through a CDS Participant. Upon the purchase of Units, the owner will receive only a customer confirmation.
Additional information on the Units may be found in the Fund's prospectus dated January 25, 2012 (the "Prospectus"), which is available at www.SEDAR.com. Capitalized terms not otherwise defined are as defined in the Prospectus.
Stock Symbol: "LOW.UN" CUSIP: 54750T 10 5 Trading Currency: CDN$
Market Maker: Canaccord Genuity Corp.
Other Markets: None
Telephone Number: 888-276-2258
Fax Number: (416) 363-2089
Chief Financial Officer: Darren N. Cabral
Corporate Secretary W. Neil Murdoch
Investor Relations: W. Neil Murdoch
Darren N. Cabral
Manager: Connor, Clark & Lunn Capital Markets Inc.
Incorporation: The Fund is a closed-end investment fund established under the laws of the Province of Ontario pursuant to a trust agreement dated as of January 25, 2012.
Fiscal Year End: October 31
Nature of Business: The Fund has been created to invest in an equally-weighted portfolio comprised of the 30 equity securities which have the lowest volatility of those securities included in the S&P/TSX Composite Index that have a minimum specified current yield at the time of investment. The Manager will write covered call options from time to time on up to 25% of the Portfolio in order to seek to earn income from option premiums to supplement the dividends and distributions generated by the Portfolio and to further decrease the overall volatility of returns associated with the Portfolio Securities.
Transfer Agent &
Registrar: Computershare Investor Services Inc. at its principal office in Toronto.
Distributions: The Fund will not have a fixed distribution policy, but intends to make monthly distributions based on the actual and expected returns on the Portfolio. Based on current estimates and the assumptions set out in the Prospectus, the Fund's initial distribution target is expected to be $0.05 per Unit per month, representing an initial yield on the Unit issue price of 6.0% per annum. The initial monthly distribution will be payable to Unitholders of record on March 30, 2012 and will be paid no later than April 16, 2012. The first distribution will be pro-rated to reflect the period from the Closing Date to March 30, 2012.
Public Offering: Pursuant to the terms of the Prospectus, up to a maximum of 10,000,000 Units are being offered to the public by BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., GMP Securities L.P., National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp. and Mackie Research Capital Corporation, as agents, at a price of $10 per Unit.