Skylon Growth & Income Trust Completes IPO

On March 3, 2004, Skylon Growth & Income Trust completed an initial public offering in Canada of an aggregate of 20.53 million units, raising gross cash proceeds of $205.3 million.

The trust’s investment objectives are to provide holders of units with monthly distributions, preserve capital throughout the life of the trust and enhance the long-term total return of a diversified portfolio of securities consisting primarily of units of income funds, high yield debt and common shares. The portfolio of securities will be actively managed by the Signature Group of CI Mutual Funds Inc. (CI), the investment advisor of the trust. Skylon Advisors Inc. (Skylon), the manager of the trust, is an indirect wholly owned subsidiary of CI Fund Management Inc.

To meet its investment objectives, the trust invested the net proceeds of the offering in a portfolio of securities of income funds, high yield debt, dividend paying common shares, other common shares, other securities and cash and installment receipts or other rights to acquire any of the foregoing. CI will employ an asset allocation investment approach whereby CI will diversify the trust’s investments among the various asset classes comprising the portfolio of securities.

Skylon, the trust and CI were represented in-house by Michael Killeen, senior vice-president and general counsel, CI; and by McCarthy Tétrault LLP, with a team that included John Kruk, Katherine Gurney and Carmen Coccimiglio (securities) and James Morand (tax). The agent syndicate, led by TD Securities Inc. and CIBC World Markets Inc., was represented by McMillan Binch LLP, with a team that included Margaret McNee and Felicia Chen (securities) and Mark Lobsinger and Laura Stoddard (tax).

Lawyer(s)

John Kruk Mark W. Lobsinger Margaret C. McNee James G. Morand Felicia C.W. Chen Katherine M. Gurney