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TORONTO, Nov. 4, 2013 /CNW/ – Strathbridge Asset Management Inc. (the “Manager”) is pleased to announce that NDX Growth & Income Fund (the “Fund”) has filed a preliminary prospectus for a public offering of units.
The Fund’s investment objectives are to provide Unitholders with (i) stable quarterly cash distributions; and (ii) the opportunity for capital appreciation.
The Fund will seek to achieve its investment objectives by investing in a portfolio consisting primarily of the top 20 highest yielding constituents of the NASDAQ-100 IndexSM. The NASDAQ 100 includes 100 of the largest U.S. domestic and international non-financial securities listed on The NASDAQ Stock Market based on market capitalization. Each top 20 security held in the portfolio shall at the time of purchase have a weighting of between 3% and 7% of the fund’s Net Asset Value. The portfolio will be reconstituted annually to include the then top 20 highest yielding securities of the NASDAQ 100.
The Manager intends to strategically write covered call options from time to time, in respect of not more than 33% of the securities in the portfolio, in order to enhance the Fund’s total return and reduce the overall volatility of the portfolio.
The following table lists the top 20 highest yielding constituents of the NASDAQ 100 that would have been included in the portfolio if it had been established on October 17, 2013.
|Analog Devices Inc.||Kraft Foods Group Inc.||Seagate Technology|
|Apple Inc.||Linear Technology Corp.||Staples Inc.|
|CA Inc.||Mattel Inc.||Symantec Corp.|
|Cisco Systems Inc.||Maxim Integrated Products||Texas Instruments Inc.|
|Garmin Ltd.||Microchip Technology Inc.||Vodafone Group PLC – ADR|
|Intel Corp.||Microsoft Corp.||Wynn Resorts Ltd.|
|KLA-Tencor Corporation||Paychex Inc.|
Two classes of units are being offered; Class A units at a price of $10.00 per unit, which will be hedged to the Canadian dollar and Class U units at US$10.00 per unit, which will be convertible into Class A units and redeemable in U.S. dollars.
Initially, both classes of units will pay a quarterly distribution of 6.0% per annum of the issue price on the last business day of the months of March, June, September and December.
The syndicate of agents for the offering is being co-led by Scotiabank, CIBC and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Corporation and Mackie Research Capital Corporation.
David Roode, President, Fund Services
The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities legislation and they may not be offered or sold in the United States or to or for the account of a person in the United States or a U.S. person except in transactions exempt from the registration requirements of the 1933 Act and applicable state securities legislation.
A preliminary long form prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each Province of Canada. The preliminary long form prospectus is still subject to completion or amendment. Copies of the preliminary long form prospectus may be obtained from Scotiabank or any other member of the syndicate. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final long form prospectus has been issued.
SOURCE NDX Growth & Income Fund
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.