On December 23, 2004, Connor, Clark & Lunn Conservative Income Fund (the Trust) completed an initial public offering in Canada of 14.375 million units of the Trust (Units), raising gross proceeds of approximately $144 million. The Trust’s investment objectives are to: (i) provide unitholders with a stable stream of monthly cash distributions targeted to be $0.0583 per Unit (representing approximately a 7.0 per cent per annum yield on the issue price of $10 per Unit); and (ii) preserve the net asset value per Unit in order to return at least the original issue price of Units ($10 per Unit) to unitholders on or about December 15, 2014 and provide to unitholders an opportunity for capital appreciation above the original issue price. Connor, Clark & Lunn Capital Markets Inc. (CC&L) manages the Trust.
In order to achieve the Trust’s investment objectives, Connor, Clark & Lunn Investment Management Ltd., the Trust’s investment manager, will invest the net proceeds of the offering, together with any borrowings under the Trust’s loan facility or other leverage transaction, in a portfolio consisting of income producing securities including Canadian business income trusts, real estate investment trusts, utility income trusts, corporate bonds and convertible bonds. The Trust’s portfolio will be managed to substantially replicate the CC&L Income Fund Composite, a strategy managed by the investment manager, which has similar investment objectives to those of the Trust.
CC&L and the Trust were represented by a team from McMillan Binch LLP that included Margaret McNee, Cindy Wan and Banu Unal (securities) and Mark Lobsinger and Carrie Aiken (tax).
Andrew Aziz, Rick Fullerton and Peter Simeon (securities) and Daniel MacIntosh and Timothy Hughes (tax) of Osler, Hoskin & Harcourt LLP represented the underwriting syndicate for the Trust led by Scotia Capital Inc., CIBC World Markets Inc. and RBC Capital Markets.