Business & Finance
Business and Finance
Business and Finance
Wed, April 6, 2011 CONNOR, CLARK &; LUNN CONSERVATIVE INCOME &; GROWTH FUND FILES PRELIMINARY PROSPECTUS FOR WARRANT OFFERING
TORONTO, April 6 /CNW/ - (TSX: CCP.UN) - Connor, Clark & Lunn Conservative Income & Growth Fund (the "Fund") is pleased to announce that it has filed a preliminary short form prospectus relating to an offering of warrants ("Warrants") to holders ("Unitholders") of its units ("Units"). Each Unitholder of record on a date (the "Record Date") to be established prior to filing the final short form prospectus will receive one Warrant for each Unit held.
Each Warrant will entitle its holder to acquire one Unit upon payment of the subscription price. The Record Date and the subscription price will be determined at the time the Fund files its final prospectus for the offering. The Fund has applied to list the Warrants and the Units issuable upon the exercise thereof on the Toronto Stock Exchange.
The exercise of Warrants by holders will provide the Fund with additional capital that can be used to take advantage of attractive investment opportunities and is also expected to increase the trading liquidity of the Units and to reduce the management expense ratio of the Fund.
The Fund's investment objectives are to provide holder of Units ("Unitholders") with: (i) an attractive yield through receipt of monthly distributions initially targeted to yield approximately 6.0% of net asset value ("NAV") per annum; (ii) downside protection through diversification across multiple asset classes and a conservative approach to security selection; and (iii) growth that outpaces inflation by investing in securities that provide both a high yield and capital appreciation potential.
The Fund seeks to achieve its investment objectives by diligently selecting and actively managing a diversified portfolio of high income investments across a broad range of income-oriented securities. These may include equities, income trusts, limited partnerships, REITS, corporate bonds, convertible bonds, preferred shares, other income funds and other investments, in accordance with the investment objectives and investment strategy.
