Connor, Clark & Lunn Capital Markets Inc. said Monday that the closing of the offering of units of Low Volatility Canadian Income Fund (is expected to take place in mid to late January.
CC&L says securities of exchange eligible issuers deposited according to the fund’s exchange option will not be acquired by the fund until the closing date at which time the exchange will be a taxable disposition, and not as of the deposit date in 2011.
The fund has been created to invest in an equally-weighted portfolio comprised of the 30 equity securities which have the lowest volatility of those securities included in the S&P/TSX Composite Index that have a minimum specified current yield at the time of investment.
The fund’s manager, CC&L, will write covered call options from time to time on up to 25% of the portfolio in order to seek to earn income from option premiums to supplement the dividends and distributions generated by the portfolio and to further decrease the overall volatility of returns associated with the portfolio securities.
The fund’s investment objectives are to provide investors with: stable monthly distributions; the opportunity for capital appreciation; and an investment in a portfolio of Canadian equity securities that exhibit low volatility of returns.
The units are being offered for sale by a syndicate of agents co-led by BMO Capital Markets, CIBC and RBC Capital Markets, and including TD Securities Inc., GMP Securities L.P., National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp. and Mackie Research Capital Corporation.