Aston Hill Capital Markets Inc has held the closing of the initial public offering of Voya Global Income Solutions Fund with gross proceeds of approximately USD22 million.
That total includes USD20,000,000 from the sale of 2,000,000 Class A Units and US USD2,040,000 from the sale of 204,000 Class U Units. The Fund has granted the agents an over-allotment option, exercisable for a period of 30 days from today's date, to purchase an additional 300,000 Class A Units. The Class A Units are listed on the Toronto Stock Exchange ("TSX") under the symbol VGI.UN.
The Fund's investment objectives are to (i) provide monthly cash distributions; (ii) preserve capital and provide the opportunity for capital appreciation; and (iii) generate increased returns in the event that short-term market interest rates rise and through dividend growth, in each case, through an investment, direct or indirect, in a diversified portfolio (the "Portfolio") consisting primarily of secured, senior floating rate loans (Senior Loans) of non-investment grade North American borrowers and global dividend paying equities (Global Equities), actively managed by Voya Investment Management Co LLC (formerly ING Investment Management Co. LLC) (the "Sub-Advisor"). The Sub-Advisor will actively allocate between these asset classes based upon its analysis of the outlook for global credit and equity markets, and the valuation and prospects of Senior Loans and Global Equities.
The Fund will not have a fixed distribution policy, but intends to make monthly distributions based on the actual and expected returns on the Portfolio. Given that a significant portion of the Portfolio will be invested in Senior Loans which are floating rate, returns may vary with changes in interest rates. Based on current estimates and the assumptions set out in the final prospectus dated November 18, 2014, the Fund's initial distribution target is expected to be USD0.0416 per Class A Unit per month (US USD0.0416 in the case of the Class U Units), representing an initial yield on the Unit issue price of 5.0% per annum.
Voya Investment Management Co. LLC will act as the sub-advisor to the Fund in connection with the selection, purchase and sale of Senior Loans, Global Equities and other assets of the Portfolio. The Sub-Advisor is part of Voya Investment Management (formerly ING US Investment Management) (Voya IM), a leading US-based asset management firm and wholly-owned subsidiary of Voya Financial, Inc. (formerly ING US, Inc.) (NYSE: VOYA). Voya IM is a leading US-based active asset management firm. As of June 30, 2014, Voya IM managed approximately USD214 billion for both institutions and individual investors. The Sub-Advisor will manage the Portfolio using the input of its Multi-Asset, Senior Loan and Global Equity Teams.
Aston Hill Capital Markets Inc. will act as manager of the Fund. The Manager is a leading provider of investment products having raised over USD2.5 billion in assets. The Manager is part of Aston Hill Financial Inc., a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. Aston Hill Financial Inc. has offices in Calgary, Toronto and Halifax. As of 30 September, 2014, Aston Hill Financial Inc. had approximately USD7.1 billion in assets under management.
The Units are being offered for sale by a syndicate of agents co-led by BMO Capital Markets and Scotiabank and including CIBC, RBC Capital Markets, National Bank Financial Inc., GMP Securities LP, Canaccord Genuity Corp, Raymond James Ltd, Burgeonvest Bick Securities Limited, Desjardins Securities Inc, Dundee Securities Ltd., Mackie Research Capital Corporation and Manulife Securities Incorporated.