TORONTO, ONTARIO -- (Marketwire) -- 02/27/13 -- Strathbridge Asset Management Inc. ("Strathbridge" or the "Manager") is pleased to announce that the Low Volatility U.S. Equity Income Fund (the "Fund") has filed and received a receipt for its final prospectus from the securities regulatory authority in each province of Canada for a maximum offering size of $50 million. The Fund is offering trust units at a price of $10.00 per unit. The TSX has conditionally approved the listing of the units under the ticker symbol LVU.UN.
The Fund is designed to provide investors with an actively managed investment in the common shares of low volatility, large capitalization, U.S. companies while mitigating downside risk and paying a monthly cash distribution. The Fund's investment objectives are:
(i) to maximize risk adjusted returns for unitholders; and (ii) to pay unitholders monthly cash distributions in an amount targeted to be 5.0% per annum on the NAV per unit.
The Fund will seek to achieve its investment objectives by actively investing in a conservative portfolio consisting of large capitalization equity securities selected from the S&P 100 Index, a subset of the S&P 500 Index containing the largest issuers by market capitalization, with a beta of less than 1.0. Beta is a financial term used as a measure of a security's or a portfolio's return in relation to the market. A beta of less than 1.0 indicates that the price of a security will generally vary to a lesser extent than the movement of the market and a beta of greater than 1.0 indicates that the price of a security will generally vary to a greater extent than the movement of the market. The Fund will utilize a selective covered call option writing strategy designed to enhance portfolio income and mitigate downside risk.
If the Investment Universe was established on February 21, 2013, it would have consisted of 48 securities screened from the S&P 100 Index, and which have a beta of less than 1.0. The Portfolio will generally consist of 20 to 30 equity securities of issuers selected from the Investment Universe.
The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC and includes BMO Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P. Macquarie Private Wealth Inc., Raymond James Ltd., and Mackie Research Capital Corporation.
For further information, please contact your financial advisor, call our investor relations line at 416.681.3966, toll free at 1.800.725.7172 or visit www.strathbridge.com.
The offering is only made by prospectus. A final prospectus containing important detailed information about the securities being offered has been filed. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Strathbridge Asset Management Inc.
President, Fund Services
416.681.3966 or Toll Free: 1.800.725.7172