TORONTO, ONTARIO--(Marketwire - Feb. 28, 2013) -
NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.
First Asset Advantaged Morningstar U.S. Consumer Defensive Index Fund (the "Fund") announces that it has filed a final prospectus dated February 27, 2013 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 offering is scheduled to close on March 22, 2013. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Units under the symbol UCD.UN, subject to the fulfillment of TSX requirements.
The Fund's investment objectives are to provide holders of Units with:
- the opportunity for capital appreciation; and
- monthly tax-advantaged cash distributions.
The Fund has been created to obtain exposure to a portfolio (the "Portfolio") that is designed to replicate, to the extent possible, the performance of the Morningstar® Consumer Defensive Index™ (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 February 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.
Morningstar® is a registered trademark of Morningstar, Inc. ("Morningstar"). Consumer Defensive Index™ 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.