Connor, Clark & Lunn Capital Class Inc., Natural Resources Class Shares and Connor, Clark & Lunn Capital Class Inc., Balanced
Connor, Clark & Lunn Capital Class Inc., Natural Resources Class Shares and Connor, Clark & Lunn Capital Class Inc., Balanced Portfolio Class Shares, Series 1 Announce Special Meeting
TORONTO, Nov. 12, 2012 /CNW/ - Connor, Clark & Lunn Capital Class Inc., Natural Resources Class Shares ("NR") and Connor, Clark & Lunn Capital Class Inc., Balanced Portfolio Class Shares, Series 1 ("BP") announced today that the board of directors of Connor, Clark & Lunn Capital Markets Inc., the manager of the funds, has approved a proposal that would result in the merger of each of NR and BP, with Connor, Clark & Lunn Core Income and Growth Fund ("CIGF") (the "Merger Proposal").
CIGF will be the continuing fund and, as a result, shareholders of NR and BP would become holders of CIGF Series A Units. The objectives of the Merger Proposal are to: (i) lower the administrative costs by establishing a larger fund; (ii) lower the management fees borne by NR and BP shareholders; and (iii) benefit from gaining access to a broader asset pool and more balanced income producing investment portfolio.
The investment objectives of CIGF, as the continuing fund, are to provide unitholders with (i) an attractive yield through receipt of monthly distributions initially targeted to yield approximately 6% of net asset value per annum; (ii) downside protection through diversification across multiple asset classes and a conservative approach to security selection; and (iii) growth that outpaces inflation by investing in securities that provide both a high yield and capital appreciation potential. The investment strategy of CIGF is to invest in an actively managed diversified portfolio of high income investments across a broad range of income-oriented securities, which may include equities, income trusts, limited partnerships, real estate investment trusts, corporate bonds, convertible bonds, preferred shares, other income funds and other investments.
Shareholders of NR and BP will have the opportunity to redeem their NR and BP shares at net asset value per share until the day before the effective date of the merger if they choose not to participate going forward. In order for the Merger Proposal to become effective with respect to a fund, it must be approved by a two-thirds majority of the shareholders of such fund present in person or represented by proxy at the Meetings. The Merger Proposal is also subject to the receipt of all necessary regulatory approvals. If approved, the special resolutions are expected to be implemented on or about January 8, 2013.
Special meetings of holders of Natural Resources Class Shares and Balanced Portfolio Class Shares, Series 1 will be held at 8:30 a.m. (Toronto time) on December 20, 2012 at 1 First Canadian Place, Suite 6300, 100 King Street West, Toronto, Ontario. Details of the Merger Proposal will be outlined in a joint information circular (the "Circular") to be sent to shareholders of NR and BP in connection with the special meetings.
For more information, please visit www.cclcapitalmarkets.com or contact:
Neil Murdoch President & CEO Connor, Clark & Lunn Capital Markets Inc. (416) 364-2389 email@example.com
Darren Cabral Vice President & CFO Connor, Clark & Lunn Capital Markets Inc. (416) 214-6182 or 1 (888) 276-2258 firstname.lastname@example.org
SOURCE: Connor, Clark & Lunn Capital Class Inc.
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CO: Connor, Clark & Lunn Core Income and Growth Fund ST: Ontario NI: FIN FND FLOWS MNA
-0- Nov/12/2012 18:59 GMT