NDX Growth & Income Fund
TSX : NGI.UN

NDX Growth & Income Fund

January 15, 2014 09:47 ET

NDX Growth & Income Fund Completes Closing of Over-Allotment Option

TORONTO, ONTARIO--(Marketwired - Jan. 15, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Strathbridge Asset Management Inc. (the "Manager") is pleased to announce that NDX Growth & Income Fund (the "Fund") (TSX:NGI.UN) has completed an issuance of an additional 200,000 Class A 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 approximately $33.0 million, including the proceeds from the over-allotment option and the proceeds from the issuance of Class A units and Class U units on the initial public offering. The Class A units trade on the Toronto Stock Exchange under the ticker symbol NGI.UN. The Fund initially intends to pay a quarterly distribution of 6.0% annually of the issue price (the Class A Units in Canadian dollars and the Class U Units in U.S. dollars).

The Fund's investment objectives are to provide Unitholders with (i) stable quarterly cash distributions; and (ii) the opportunity for capital appreciation.

The Fund will seek to achieve its investment objectives by investing in a portfolio consisting primarily of the top 20 highest yielding constituents of the NASDAQ-100 Index(SM). The NASDAQ 100 includes 100 of the largest U.S. domestic and international non-financial securities listed on The NASDAQ Stock Market based on market capitalization. Each top 20 security held in the portfolio shall at the time of purchase have a weighting of between 3% and 7% of the Fund's Net Asset Value and will continue to be held in the portfolio until it is reconstituted. The portfolio will be reconstituted annually (portfolio constituents selected) on December 31 of each year to include the then top 20 highest yielding securities of the NASDAQ 100.

The Manager intends to strategically write covered call options from time to time, in respect of not more than 33% of the securities in the portfolio, in order to generate additional income above the distributions earned on the equity securities and to reduce the overall volatility of the portfolio.

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

The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities legislation and they may not be offered or sold in the United States or to or for the account of a person in the United States or a U.S. person except in transactions exempt from the registration requirements of the 1933 Act and applicable state securities legislation.

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

  • Strathbridge Asset Management Inc.
    David Roode
    President, Fund Services
    416.681.3966 or 1.800.725.7172

    Strathbridge Asset Management Inc.
    121 King Street West, Suite 2600
    Toronto, Ontario, M5H 3T9
    416.681.3966 or 1.800.725.7172
    info@strathbridge.com
    www.strathbridge.com