First Asset Morningstar U.S. Consumer Defensive Index Fund has Filed an Amended and Restated Final Prospectus
TORONTO, March 26, 2013 - First Asset Morningstar U.S. Consumer Defensive Index Fund (formerly First Asset Advantaged Morningstar U.S. Consumer Defensive Index Fund) (the "Fund") announced today that it has filed and obtained a receipt for an amended and restated final prospectus. The closing of the offering will occur on April 3, 2013.
The federal budget released on March 21, 2013 announced, with effect on and after March 21, 2013, proposed measures that would preclude the use of a forward agreement in the manner described in the final prospectus of the Fund dated February 27, 2013.
The Manager has determined that, since the distributions paid by the Fund will continue to be comprised primarily of returns of capital and capital gains if the Fund invests directly in the Portfolio, the offering will proceed without a forward agreement. Aside from the elimination of the forward agreement and consequential changes to the Fund's objectives, strategy and investment restrictions, the offering remains unchanged. The Fund's investment objectives are to provide holders of Units with:
- the opportunity for capital appreciation; and
- monthly cash distributions.
The Fund has been created to invest in a portfolio (the "Portfolio") that is designed to replicate, to the extent possible, the performance of the Morningstar® Consumer Defensive IndexTM (the "Index"), net of expenses. The Portfolio will invest in the securities of the issuers comprising the Index in the same proportion as these constituents represent in the Index and accordingly the composition of the Portfolio will vary from time to time based on the composition of the Index. The Index is comprised of highly liquid, U.S. domiciled companies that trade on one of the three major U.S. exchanges and that are engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco and also includes companies that provide services such as education and training services.
The distributions are initially targeted to be 6% per annum on the subscription price of $10.00 per Unit ($0.05 per Unit per month or $0.60 per annum) for the period from closing to December 31, 2013. Thereafter, the annual distribution rate will be determined pursuant to a formula which incorporates historical levels of distributions paid, the rate of inflation, and performance of the Fund, and which will not be less than 4%, or more than 7% per annum based on the net asset value per Unit as at the end of the preceding calendar year.
The manager of the Fund is First Asset Investment Management Inc., a Canadian wealth management company that manages and administers approximately $2.65 billion in assets, as of March 15, 2013.
The syndicate of agents for this offering is being led by CIBC, co-led by National Bank Financial Inc. and RBC Capital Markets, and includes BMO Capital Markets, Scotiabank, TD Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., GMP Securities L.P., Desjardins Securities Inc., Macquarie Private Wealth Inc., Dundee Securities Ltd. and Manulife Securities Incorporated.
For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.
Morningstar® is a registered trademark of Morningstar, Inc. ("Morningstar"). Consumer Defensive IndexTM> is a trademark of Morningstar. These trademarks have been licensed for use for certain purposes by First Asset Investment Management Inc. The Units are not in any way sponsored, endorsed, sold or promoted by Morningstar or any of its affiliates, and Morningstar makes no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in the Fund particularly.
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