News Releases
TORONTO, May 22, 2008 – The Coxe Commodity Strategy Fund today completed its previously announced initial public offering of 25,000,000 Class A Combined Units and 1,000,000 Class F Combined Units at a price of $10.00 per Combined Unit for gross proceeds of $260 million.
If the over-allotment option granted to the agents is exercised within the next 30 days then the total proceeds from the offering will equal $297.5 million.
The focus of the Fund is to provide retail and institutional investors with long-term capital growth by executing the commodity investment strategies of Donald G.M. Coxe.
Mr. Coxe, BMO's Global Portfolio Strategist, is highly regarded for his unique and insightful analysis of global trends and themes that are driving the global economy. Mr. Coxe will act as the Fund's Portfolio Consultant allowing investors the first opportunity to gain direct exposure to Mr. Coxe's well-publicized views on the commodity super cycle. Harris Investment Management, Inc., a wholly-owned subsidiary of BMO, is the Investment Manager and will be responsible for implementing the Fund's investment strategy.
“I am extremely pleased to be actively taking part in what I believe is going to be the biggest commodity story of all,” said Mr. Coxe. “The continued strong demand for commodities can be expected to be driven by the needs of a growing middle class in emerging nations, as they acquire dwellings with both basic and modern amenities and automobiles, and consume a higher protein diet,” he added.
The Class A Combined Units are listed on the Toronto Stock Exchange under the symbol “COX.A”. The Class A Combined Units will separate into Class A Units and Class A Warrants on the earlier of the closing of the over-allotment option and 30 days post closing. After separating, the Class A Units and Class A Warrants will trade under the symbols “COX.UN” and “COX.WT”, respectively.
The Combined Units were offered for sale by a syndicate of agents led by BMO Capital Markets and included National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Berkshire Securities Inc., Blackmont Capital Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Richardson Partners Financial Limited and Wellington West Capital Inc.
“This deal represents an enormous success for BMO Capital Markets, bringing together multiple areas of expertise, and creating a unique opportunity for investors,” said Luke Seabrook, Executive Managing Director and Head of Financial Products, BMO Capital Markets. “This transaction also represents BMO's commitment to continuing to be a market leader in creating investment opportunities for our investing clients.”
About the Fund's Investment Strategy:
The net proceeds of the offering will be invested in an actively managed portfolio consisting primarily of equity securities. The Fund will provide exposures to commodity-related securities with the approximate target weightings established for the Fund by Mr. Coxe in the agriculture, base metals, steel, energy, and precious metals sectors. The portfolio is expected to be well diversified within these sectors and to consist primarily of exchange-traded equities, but may contain debt securities, cash and/or cash equivalents.
To obtain further details about the Coxe Commodity Strategy Fund including investment risks refer to the final prospectus. Copies of the final prospectus may be obtained from your IDA registered financial advisor or by visiting: www.bmosp.com/coxecommodity/
The final prospectus is available only to residents of Canada. Please contact your IDA registered financial advisor for further information.
About Donald Coxe:
With 36 years of institutional investing and money management experience in Canada and the United States, Donald Coxe has a unique background in North American and global capital markets. As Global Portfolio Strategist for BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (NYSE, TSX: BMO), he publishes a monthly institutional portfolio strategy journal, Basic Points, which is distributed in North America and Europe.
Last month, Mr. Coxe was recognized as this year's Top Analyst by the National Post and StarMine, an independent consulting firm that measures the performance of individual research analysts.
This press release is not for distribution in the United States.
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