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Press release from CNW Group

Connor, Clark & Lunn Capital Markets Inc. Declares Distribution for Australian Banc Capital Securities Trust

Tuesday, July 23, 2013

Connor, Clark & Lunn Capital Markets Inc. Declares Distribution for Australian Banc Capital Securities Trust

19:11 EDT Tuesday, July 23, 2013

TORONTO, July 23, 2013 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. today declared a cash distribution for Australian Banc Capital Securities Trust (the "Fund"):

Fund Trading
Symbol
Distribution
Amount
(per Unit)
Record
Date
Payable
Date
Distribution
Amount
Annualized
TSX Trading
Price Per Unit
as of
Jul. 22, 2013
Current
Yield
Australian Banc Capital
Securities Trust (Class A Units
and Class F Units)*
AUZ.UN $0.14 Jul. 31, 2013 Aug. 15, 2013 $0.56 $9.20 6.1%

*Distributions are expected to be characterized as 100% return of capital.

The quarterly distribution rate for the Fund has been lowered from $0.15 to $0.14 per Unit ($0.60 to $0.56 annually).  A significant proportion of the portfolio is invested in Australian bank bonds that float based upon BBSW, the Australian equivalent to LIBOR.  Since the beginning of 2012, the Reserve Bank of Australia (RBA) has decreased their base lending rate on five occasions for a total drop of 1.5%.  The actual rate has gone from 4.25% to 2.75%.

We have made some changes to the composition of the Fund's investment portfolio.  The RBA has given guidance that they will continue to have an accommodative stance toward monetary policy, in part due to a desire to see the Australian dollar drop further in value against other major currencies.  In order to protect against further drops in BBSW and the Australian dollar, we have lowered the Fund's exposure to floating rate bonds from about 42% at the end of the first quarter to 21% currently.  We have also lowered the Fund's exposure to Australian dollar denominated assets from approximately 48% at the end of the first quarter to 28% today.  The rest of the portfolio is invested in US dollar and British Pound denominated bonds issued by Australian banks with currency hedged back to the Canadian dollar.

Connor, Clark & Lunn Capital Markets Inc. (CC&L Capital Markets) is a leading Canadian structured financial products investment firm that is focused on creating and managing high quality investment vehicles that will stand the test of time and ultimately allow our clients to achieve their personal financial goals. Formed in 2001, CC&L Capital Markets has designed, launched and currently manages sixteen investment vehicles, raising more than $2 billion in assets.

CC&L Capital Markets is a part of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm whose affiliate companies are collectively responsible for the management of approximately $46 billion in assets.

 

SOURCE Connor, Clark & Lunn Capital Markets Inc.

For further information:

please visit www.cclcapitalmarkets.com or contact:

Darren Cabral
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
416-214-6182
Toll Free: 1-888-276-2258
cclcapitalmarkets@cclgroup.com

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