Low Volatility U.S. Equity Income Fund

TSX : LVU.UN


Low Volatility U.S. Equity Income Fund

March 21, 2014 16:03 ET

Low Volatility U.S. Equity Income Fund Announces Annual Results

TORONTO, ONTARIO--(Marketwired - March 21, 2014) - Low Volatility U.S. Equity Income Fund (the "Fund") (TSX:LVU.UN) announces results for the period ended December 31, 2013. Net increase in net assets from operations amounted to $4.3 million or $2.02 per unit. Net assets were $23.4 million or $10.97 per unit, net of distributions to unitholders in the amount of $0.8 million or $0.37 per unit.

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 achieves its investment objectives by actively investing in a conservative portfolio consisting of large capitalization equity securities selected from the S&P 100 Index 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 investment universe will be reconstituted annually.

The Fund employs a proprietary investment strategy, Strathbridge Selective Overwriting ("SSO"), to enhance the income generated by the portfolio and to reduce volatility. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.

The Fund's investment portfolio is managed by its investment manager, Strathbridge Asset Management Inc. The Fund's units are listed on the TSX under the symbol LVU.UN.

Selected Financial Information: ($ Millions)
Statement of Net Assets 2013
Assets $ 23.5
Liabilities (0.1 )
Net Assets (Unitholders' Equity) $ 23.4
Statement of Financial Operations
For the period from March 13, 2013 to December 31, 2013
Revenue $ 0.3
Expenses (0.5 )
Net Investment Loss $ (0.2 )
Net Gain on Investments 4.5
Net Increase in Net Assets from Operations $ 4.3

Aaron Ho, Vice, President, Finance

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.

A preliminary prospectus containing important information relating to the securities has been filed with the securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from the Manager at the address, telephone numbers, website and e-mail address set forth 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.

Contact Information