TORONTO, March 24, 2011 - North American Advantaged Convertibles Fund (the "Fund") announces that it has filed a preliminary prospectus dated March 23, 2011 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 an actively managed, diversified portfolio (the "Portfolio") comprised primarily of convertible debentures of Canadian, U.S. and global issuers and to seek to provide a good risk-adjusted way to invest in the Canadian, U.S. and global markets, through a combination of stable current income, security of principal and the opportunity for capital appreciation. Initially, it is expected that the Portfolio will be comprised of approximately 45% Canadian issuers, 45% U.S. issuers and 10% global 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 5% per annum on the subscription price of $10.00 per Unit ($0.125 per Unit per quarter or $0.50 per annum). The Fund will not have a fixed distribution amount but intends to set periodic distribution targets 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 approximately $2.5 billion in assets, as of March 21, 2011, including approximately $600 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., GMP Securities L.P., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Mackie Research Capital Corporation, Macquarie Private Wealth Inc. and Wellington West Capital Markets Inc.
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 contact Rob MacNiven, Investor Relations at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.