Business
Sprott Strategic Fixed Income Fund Announces Exercise of Over-Allotment Option
Total proceeds, including over-allotment option: $220,200,000 / NOT FOR DISTRIBUTION...
About this update from Sprott Inc.
[{"type":"text","content":"\n\n\n\n\n\nTotal proceeds, including over-allotment option: $220,200,000 \n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE\n UNITED STATES/\n\n\nTORONTO, Aug. 5, 2011 /CNW/ - Sprott Asset Management LP (\"Sprott\") is\n pleased to announce that the syndicate of agents for the initial public\n offering of Sprott Strategic Fixed Income Fund (the \"Fund\") has\n exercised part of its over-allotment option and acquired an additional\n 1,020,000 units of the Fund for gross proceeds of $10,200,000. In\n total, the Fund has issued 22,020,000 units (the \"Units\") at a price of\n $10.00 per Unit for total gross proceeds of $220,200,000. The Units are\n listed on the Toronto Stock Exchange under the symbol SFI.UN.\n\n\nThe Fund has been created to provide exposure, on a tax advantaged\n basis, to an actively managed portfolio (the \"Portfolio\") comprised\n primarily of long and short positions in fixed income securities from\n across the globe. In addition, Sprott will actively manage the\n Portfolio's currency exposure to both mitigate risk and enhance\n Portfolio returns. The Fund will obtain economic exposure to the\n Portfolio through a forward agreement. The individuals who will have\n primary responsibility for the execution of the Fund's investment\n strategy are Scott Colbourne and Michael Craig, as lead portfolio\n managers, and Ben Chim, as credit strategist.\n\n\nThe Fund seeks to achieve the following investment objectives:\n\n\n(i) Maximize absolute total returns to holders of Units (the\n \"Unitholders\") with low volatility relative to traditional, long-only\n bond funds; and\n\n\n(ii) Provide Unitholders with monthly tax-advantaged distributions,\n initially targeted to be 6% per annum on the original issue price of\n $10.00 per Unit.\n\n\nThe syndicate of agents for the offering was led by RBC Capital Markets\n and included CIBC, TD Securities Inc., BMO Capital Markets, National\n Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp., GMP\n Securities L.P., HSBC Securities (Canada) Inc., Wellington West Capital\n Markets Inc., Desjardins Securities Inc., Mackie Research Capital\n Corporation, Macquarie Private Wealth Inc., Manulife Securities\n Incorporated., Raymond James Ltd., and Rothenberg Capital Management\n Inc.\n\n\nAbout Sprott Asset Management LP\n\n\nSprott Asset Mana...