Total proceeds, including over-allotment option: $220,200,000
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TORONTO, Aug. 5, 2011 /CNW/ - Sprott Asset Management LP ("Sprott") is pleased to announce that the syndicate of agents for the initial public offering of Sprott Strategic Fixed Income Fund (the "Fund") has exercised part of its over-allotment option and acquired an additional 1,020,000 units of the Fund for gross proceeds of $10,200,000. In total, the Fund has issued 22,020,000 units (the "Units") at a price of $10.00 per Unit for total gross proceeds of $220,200,000. The Units are listed on the Toronto Stock Exchange under the symbol SFI.UN.
The Fund has been created to provide exposure, on a tax advantaged basis, to an actively managed portfolio (the "Portfolio") comprised primarily of long and short positions in fixed income securities from across the globe. In addition, Sprott will actively manage the Portfolio's currency exposure to both mitigate risk and enhance Portfolio returns. The Fund will obtain economic exposure to the Portfolio through a forward agreement. The individuals who will have primary responsibility for the execution of the Fund's investment strategy are Scott Colbourne and Michael Craig, as lead portfolio managers, and Ben Chim, as credit strategist.
The Fund seeks to achieve the following investment objectives:
(i) Maximize absolute total returns to holders of Units (the "Unitholders") with low volatility relative to traditional, long-only bond funds; and
(ii) Provide Unitholders with monthly tax-advantaged distributions, initially targeted to be 6% per annum on the original issue price of $10.00 per Unit.
The syndicate of agents for the offering was led by RBC Capital Markets and included CIBC, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp., GMP Securities L.P., HSBC Securities (Canada) Inc., Wellington West Capital Markets Inc., Desjardins Securities Inc., Mackie Research Capital Corporation, Macquarie Private Wealth Inc., Manulife Securities Incorporated., Raymond James Ltd., and Rothenberg Capital Management Inc.
About Sprott Asset Management LP
Sprott Asset Management LP (www.sprott.com), one of Canada's leading investment firms based in Toronto and a wholly owned subsidiary of Sprott Inc. (www.sprottinc.com), is a fund company dedicated to achieving superior returns for its investors over time. Sprott currently manages over $8 billion in assets divided among mutual funds, hedge funds, publicly traded companies and structured vehicles.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ''expect,'' ''intend,'' "will" and similar expressions to the extent that they relate to the Fund. The forward-looking statements are not historical facts but reflect Sprott's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sprott believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sprott does not undertake any obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.