U.S. Financials Income Fund

U.S. Financials Income Fund

February 24, 2015 08:56 ET

U.S. Financials Income Fund Closes Initial Public Offering

TORONTO, ONTARIO--(Marketwired - Feb. 24, 2015) -

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

Strathbridge Asset Management Inc. (the "Manager") is pleased to announce that U.S. Financials Income Fund (the "Fund") has completed its initial public offering of 3,200,000 Class A units at a price of $10.00 per unit and 412,600 Class U units at a price of US$10.00 per unit, for gross proceeds of approximately $37 million. The Class A units will commence trading on the Toronto Stock Exchange under the ticker symbol USF.UN. Each unit initially pays a quarterly distribution of 5.0% annually of the issue price in their respective currencies.

The Fund's investment objectives are (i) to provide Unitholders with quarterly cash distributions; and (ii) to maximize total return through capital appreciation and distributions.

The Fund will seek to achieve its investment objectives by investing in an actively managed portfolio (the "Portfolio") generally consisting of 20 to 30 equity securities of U.S. financial issuers selected from the S&P 500 Index that are classified as "financials" by Standard & Poor's Global Industry Classification Standard and which have a market capitalization of at least US$10 billion and a credit rating issued by Standard & Poor's® Rating Services, a division of The McGraw-Hill Companies, Inc. of at least A- at the time of purchase ("U.S. Financials"). The Portfolio will also include U.S. publicly listed alterative asset management issuers which have a market capitalization of at least US$5 billion at the time of purchase ("Alternative Asset Managers"). U.S. Financial issuers may include, but are not limited to, issuers operating in the following financial industry sub-sectors: retail and commercial banking, investment banking, wealth management, insurance and real estate. Alternative Asset Manager issuers may include, but are not limited to, managers or investment advisors who structure, promote, sponsor or operate investment and other funds focused on non-traditional asset classes such as private equity, real estate, commodities and alternative investment strategies. The investment universe as determined by the criteria noted above consisted of 45 issuers as of January 22, 2015.

To generate additional income above the distributions earned on its equity securities, the Fund will from time to time write covered call options in respect of all or a portion of the securities in its Portfolio.

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

  • 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