Claymore Investments has announced that Claymore Equal Weight Banc & Lifeco Trust will now be traded as an exchange-traded fund effective.
Claymore Investments has announced that Claymore Equal Weight Banc & Lifeco Trust will now be traded as an exchange-traded fund effective. The Advisor Class units will now trade on the Toronto Stock Exchange.
The fund was a closed-end fund, the Advisor Class units of which were offered to the public under a prospectus and issued at the closing of its initial public offering. As set out in such prospectus the fund would automatically convert to an ETF if, commencing after November 15, 2007, the daily weighted average trading price of the Advisor Class units was greater than a discount of 2 per cent of NAV per unit for a period of 10 consecutive trading days. The conversion test has been met and the fund has now converted to an ETF.
The fund has changed its name from Claymore Equal Weight Banc & Lifeco Trust to Claymore Equal Weight Banc & Lifeco ETF.
By converting to an ETF, the fund is expected to provide unit holders with several important benefits including more efficient trading as the market price of the fund’s units on the TSX should be closer to its intrinsic net asset value, as well as greater market liquidity and greater portfolio transparency. The conversion to an ETF will not change the investment objectives, investment strategy, or investment restrictions of the fund.
The fund has been created to provide investors with a diversified equal weighted investment in a portfolio of Canadian banks and life insurance companies. The fund invests, equally weighted, in common shares of the largest Canadian banks and Canadian life insurance companies.
Cash distributions on Advisor Class units are expected to be made monthly and are targeted at USD0.04167 per Advisor Class unit (or USD0.50 per annum). Cash distributions on common units are expected to be made quarterly based on any dividends received by the fund less expenses. Such distributions may also include capital gains dividends and returns of capital.
Claymore Investments is responsible for the administration and management of the ETFs. Claymore is a wholly-owned subsidiary of Claymore Group, a financial services and asset management company based in the Chicago, Illinois. As of December 31, 2007, Claymore has provided supervision, management, servicing or distribution on approximately USD18.5bn in assets through ETFs, closed-end funds, unit investment trusts, mutual funds, and separately managed accounts. Claymore Advisors, an affiliate of Claymore Securities, serves as investment adviser to the funds.
