U.S. Financials Income Fund

U.S. Financials Income Fund

March 09, 2015 10:02 ET

U.S. Financials Income Fund Completes Closing of Over-Allotment Option

TORONTO, ONTARIO--(Marketwired - March 9, 2015) -


Strathbridge Asset Management Inc. (the "Manager") is pleased to announce that U.S. Financials Income Fund (the "Fund") (TSX:USF.UN) has completed an issuance of an additional 175,000 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 $38.9 million, including the proceeds from the over-allotment option and the proceeds from the issuance of Class U units on the initial public offering. The Class A units trade 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 seeks 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 also includes U.S. publicly listed alternative 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.

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.

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