TORONTO, November 22, 2010 - Canadian Advantaged Convertibles Fund (the "Fund") announces that it has filed a preliminary prospectus dated November 18, 2010 with the securities regulatory authorities of all of the Canadian provinces and territories for an initial public offering of trust units (the "Units") at $10 per Unit.
The Fund has been created to obtain exposure to a diversified portfolio (the "Portfolio") comprised primarily of convertible debentures of Canadian issuers. The Fund will be managed by First Asset Investment Management Inc. ("First Asset").
The Fund's investment objectives are to provide holders of Units with:
- quarterly tax-advantaged distributions; and
- the opportunity for capital appreciation.
The distributions are initially targeted to be 6% per annum on the subscription price of $10.00 per Unit ($0.15 per Unit per quarter or $0.60 per annum). The Fund will not have a fixed distribution amount. The amount of quarterly distributions will be based on First Asset's estimate of distributable cash flow of the Fund for the period.
First Asset is a Canadian wealth management company that manages and administers in excess of $2 billion in assets, as of November 5, 2010, including approximately $450 million in convertible debentures.
The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and includes, BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Private Wealth Inc. and Mackie Research Capital Corporation.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from one of the dealers noted above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
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.