for total gross proceeds of $103 million as the Over-Allotment
Option is exercised by the Agents
TORONTO, April 30, 2010 - IA Clarington
Investments Inc. (the "Manager") is pleased to announce that IA
Clarington Aston Hill Tactical Yield Fund (the "Fund") successfully
issued an additional 300,000 Trust Units and 300,000 Warrants
pursuant to the exercise by the Agents of their Over-Allotment
Option. Total gross proceeds are now $103 million. The Units issued
at closing of the initial public offering on April 19, 2010
together with the Units issued pursuant to the Over-Allotment
Option, have separated into Trust Units and Warrants and now trade
on the Toronto Stock Exchange independently under the symbols
TYF.UN and TYF.WT, respectively.
The initial monthly cash distribution of $0.025 per Trust Unit
is anticipated to be payable on May 14, 2010 to Unitholders of
record on April 30, 2010. Additionally, each Warrant entitles the
holder to purchase one Trust Unit at the subscription price of
$10.00 per Trust Unit on or before 5:00 p.m. (Toronto time) on
April 29, 2011. The Fund's investment objectives are:
- to provide unitholders with monthly cash distributions,
initially targeted to be 6.0% per Trust Unit per annum on the
original offering price of $10.00 per Unit ($0.05 per Trust Unit
per month or $0.60 per Trust Unit per annum); and
- to maximize total returns for unitholders, consisting of both
cash distributions and capital appreciation, while reducing risk
and preserving capital.
The Fund's investment strategy is to invest in an actively
managed, diversified portfolio comprised primarily of:
- Canadian common and preferred equity securities and income
trust units that provide a consistent and stable source of current
- fixed income securities, including high yield corporate debt
securities, cash and cash equivalents.
Each of the equity portion and the fixed income portion
generally will represent between one-third and two-thirds of the
portfolio, with the allocation at any time being determined by the
portfolio manager based on its view of market opportunities at the
time of investment.
The Fund will be actively managed by Catapult Financial
Management Inc., and Ben Cheng will be the lead portfolio manager
responsible for the Fund. On or before April 30, 2012, the Fund
- convert to an open-ended mutual fund, or
- merge on a tax-deferred basis with an open-ended mutual fund to
be managed by the Manager or an affiliate of the Manager.
The syndicate of agents was co-led by CIBC World Markets Inc.
and RBC Capital Markets and included BMO Capital Markets, National
Bank Financial Inc., Scotia Capital Inc., TD Securities Inc.,
Canaccord Financial Ltd., Desjardins Securities Inc., HSBC
Securities (Canada) Inc., Raymond James Ltd., Wellington West
Capital Markets Inc., Dundee Securities Corporation, Macquarie
Capital Markets Canada Ltd., Industrial Alliance Securities Inc.
and Rothenberg Capital Management Inc.
About IA Clarington Investments Inc.
IA Clarington Investments Inc., a subsidiary of Industrial
Alliance Insurance and Financial Services Inc., markets a wide
range of investment products, including mutual funds and segregated
funds managed by leading portfolio advisors. IA Clarington managed
more than $8.2 billion in assets as at March 31, 2010.
Catapult Financial Management Inc.
Catapult is a wholly-owned subsidiary of Aston Hill Financial
Inc. ("Aston Hill"), which is listed on the TSX Venture Exchange
under "AHF". As at March 31, 2010, Aston Hill had approximately
$1.8 billion in assets under management.
For more information contact:
Senior Vice-President, Product and Business Development
IA Clarington Investments Inc.
The IA Clarington Funds and IA Clarington Target Click Funds are
managed by IA Clarington Investments Inc. IA Clarington and the IA
Clarington logo are trademarks of Industrial Alliance Insurance and
Financial Services Inc. and are used under license.
All capitalized terms used in this news release but not defined
have the meanings attributed to such terms in the prospectus of the
Fund dated March 29, 2010.