TORONTO, ONTARIO–(Marketwired – March 22, 2017) – Low Volatility U.S. Equity Income Fund (the “Fund”) (TSX:LVU.UN) announces results of operations for the year ended December 31, 2016. Decrease in net assets attributable to equity holders amounted to $0.27 million or $0.33 per unit. As at December 31, 2016, net assets attributable to equity holders were $6.62 million or $10.16 per unit. Cash distributions to equity holders totaling $0.45 million or $0.57 per unit were paid during the year.
The Fund’s investment objectives are (i) to maximize risk adjusted returns for unitholders; and (ii) to pay unitholders monthly cash distributions in an amount targeted to be 5.0% per annum on the NAV per unit.
The Fund achieves its investment objectives by investing in a conservative portfolio consisting principally of large capitalization equity securities selected from the S&P 100 Index with a beta of less than 1.0. Beta is a financial term used as a measure of a security’s or a portfolio’s return in relation to the market. A beta of less than 1.0 indicates that the price of a security will generally vary to a lesser extent than the movement of the market and a beta of greater than 1.0 indicates that the price of a security will generally vary to a greater extent than the movement of the market. In addition, up to 25% of the NAV of the Fund may be invested in securities of other issuers included in the S&P 100 Index.
The Fund employs a proprietary investment strategy, Strathbridge Selective Overwriting (SSO), to enhance the income generated by the portfolio and to reduce volatility. The Fund may also from time to time write cash covered put options in respect of securities in which it is permitted to invest.
The Fund’s investment portfolio is managed by its investment manager, Strathbridge Asset Management Inc. The Fund’s units are listed on the TSX under the symbol LVU.UN.
| Selected Financial Information: ($ Millions) | |||
| Statement of Financial Position | 2016 | ||
| As at December 31 | |||
| Assets | $ | 6.71 | |
| Liabilities | (0.09 | ) | |
| Net Assets Attributable to Equity Holders | $ | 6.62 | |
| Statement of Comprehensive Income | |||
| For the year ended December 31 | |||
| Income (including Net Loss on Investments) | $ | 0.11 | |
| Expenses | (0.38 | ) | |
| Decrease in Net Assets Attributable to Equity Holders | $ | (0.27 | ) |
For further information, please contact your financial advisor, call our investor relations line at 416.681.3966, toll free at 1.800.725.7172 or visit www.strathbridge.com.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Aaron Ho
Vice President, Finance
Strathbridge Asset Management Inc.
121 King Street West, Suite 2600
Toronto, Ontario, M5H 3T9
416.681.3966; 1.800.725.7172
info@strathbridge.com
www.strathbridge.com