Low Volatility U.S. Equity Income Fund

Low Volatility U.S. Equity Income Fund

March 28, 2013 10:42 ET

Low Volatility U.S. Equity Income Fund Completes Closing of Over-Allotment Option

TORONTO, ONTARIO--(Marketwire - March 28, 2013) - Strathbridge Asset Management Inc. ("Strathbridge" or the "Manager") is pleased to announce that Low Volatility U.S. Equity Income Fund (the "Fund") (TSX:LVU.UN) has completed an issuance of an additional 85,000 units ("Units") pursuant to the exercise of the over-allotment option granted to the Fund's agents in its recently completed initial public offering. Altogether, the Fund has raised gross proceeds of $21.3 million, including the proceeds from the over-allotment option. The Units trade on the Toronto Stock Exchange under the ticker symbol LVU.UN.

The Fund is designed to provide investors with an actively managed investment in the common shares of low volatility, large capitalization, U.S. companies while mitigating downside risk and paying a monthly cash distribution. The Fund's investment objectives are:

  1. to maximize risk adjusted returns for unitholders; and
  2. to pay unitholders monthly cash distributions in an amount targeted to be 5.0% per annum on the NAV per unit.

The Fund will seek to achieve its investment objectives by actively investing in a conservative portfolio consisting of large capitalization equity securities selected from the S&P 100 Index, a subset of the S&P 500 Index containing the largest issuers by market capitalization, with a beta of less than 1.0 (the "Investment Universe"). The Fund will utilize a selective covered call option writing strategy designed to enhance portfolio income and mitigate downside risk.

If the Investment Universe was established on February 21, 2013, it would have consisted of 48 securities screened from the S&P 100 Index, and which have a beta of less than 1.0. The Portfolio will generally consist of 20 to 30 equity securities of issuers selected from the Investment Universe.

The syndicate of agents for the offering was co-led by RBC Capital Markets and CIBC and included BMO Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd. and Mackie Research Capital Corporation.

For further information, please contact your financial advisor, call our investor relations line at 416.681.3966, toll free at 1.800.725.7172 or visit www.strathbridge.com.

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.

Contact Information