TORONTO, ONTARIO--(Marketwired - April 10, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Media Titans Growth & Income Fund (the "Fund") is pleased to announce that it has obtained a receipt for its amended and restated preliminary prospectus for the initial public offering (the "Offering") of the Fund's Units ("Units"). Units are being offered for $10.00 per Unit.
The Fund has been created to provide investors with an investment in the dominant participants in the U.S. media sector.
The investment objectives of the Fund are to provide holders of Units ("Unitholders") with: (i) the opportunity for capital appreciation; (ii) monthly distributions; and (iii) lower overall volatility of portfolio returns than would be experienced by owning securities of Media Titans (defined below) directly.
The gross proceeds of the Offering will be invested in a portfolio (the "Portfolio") of listed equity securities of 6 of the largest media companies in the U.S. that are engaged in the production, distribution and delivery of media content across a variety of traditional and emerging platforms ("Media Titans"): The Walt Disney Company, Comcast Corporation, Twenty-First Century Fox, Inc., Time Warner Inc., Viacom Inc. and CBS Corporation. The Portfolio will be equally weighted at the time of initial investment and will be rebalanced semi-annually.
BMO Nesbitt Burns Inc., the manager of the Fund, will pay all fees and expenses of the Offering. As a result, the Fund will receive the total gross proceeds of the Offering and the net asset value per Unit immediately following the closing of the Offering will be $10.00.
To earn income from option premiums to supplement the dividends generated by the Portfolio and to lower the overall volatility of returns associated with the securities held by the Portfolio, Aston Hill Capital Markets Inc. (the "Portfolio Manager") will write covered call options from time to time on up to 25% of the Portfolio as selected by the Portfolio Manager from time to time.
The Fund intends to pay monthly distributions to Unitholders. Distributions are initially targeted to be $0.0416 per Unit per month ($0.50 per Unit per annum) representing a yield of 5.0% per annum based on the original issue price of $10.00 per Unit.
Aston Hill Capital Markets Inc. has been retained as the portfolio manager of the Fund and will be responsible for implementing the Fund's investment strategies including executing and maintaining the Fund's option writing activities. The Portfolio Manager is a leading provider of investment products having raised over $2.5 billion in assets. The Portfolio Manager is part of Aston Hill Financial Inc., a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. Aston Hill Financial has offices in Calgary, Toronto and Halifax. As at December 31, 2013, Aston Hill Financial Inc. had over $7.8 billion in assets under management.
BMO Nesbitt Burns Inc. is the promoter of the Fund, one of the agents in connection with the Offering and will act as the manager of the Fund.
The syndicate of agents for the Offering is being led by BMO Capital Markets, CIBC and Scotiabank and includes National Bank Financial Inc., TD Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., Burgeonvest Bick Securities Limited, Mackie Research Capital Corporation, Manulife Securities Incorporated, Dundee Securities Ltd., Industrial Alliance Securities Inc. and Laurentian Bank Securities Inc.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities of the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
An amended and restated 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 amended and restated preliminary prospectus is still subject to completion or amendment. Copies of the amended and restated preliminary prospectus may be obtained from any of the agents listed 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.