Toronto, January 27, 2005 – Brascan Asset Management Inc. announced the filing of a preliminary prospectus on January 26, 2005 with the provincial securities regulators across Canada for the initial public offering of trust units (the “Capital Units”) and preferred securities (the “Preferred Securities”) of Brascan SoundVest Rising Distribution Split Trust (the “Trust”).
The Trust expects to actively invest in a diversified portfolio of 30 to 40 select income trusts with a focus on income trusts that the Investment Advisor believes have the greatest potential to increase annual distributions. The Trust will have a dual security structure, consisting of Capital Units and Preferred Securities. The Trust proposes to offer its Capital Units at a price of $15.00 per unit and its Preferred Securities at a price of $10.00 per security. The Capital Units and Preferred Securities are being offered separately, but will be issued only on the basis that an equal number of Capital Units and Preferred Securities will be outstanding at the closing of this offering. This dual structure offers investors flexibility to select the type of security and tax character for distributions best suited to their investment needs.
The Trust's Preferred Securities will bear interest at 6% per annum, on the original subscription price of $10.00, with interest payable quarterly. The Preferred Securities have been provisionally rated Pfd-2 by Dominion Bond Rating Service Limited.
The Trust's Capital Units target an initial annual yield of 9% for the period ending December 31, 2005, with distributions payable monthly. The Capital Units are intended to provide unitholders with a tax efficient participation in the returns of the portfolio, and the benefit of any distribution increases and capital appreciation of the portfolio.
The Trust will be managed by Brascan Rising Distribution Management Ltd., a subsidiary of Brascan Asset Management. SoundVest Capital Management Ltd., which is 50% owned by Brascan Asset Management, will act as the investment advisor and portfolio manager of the Trust.
The offering will be co-led by RBC Capital Markets and CIBC World Markets Inc. and includes a syndicate of underwriters including BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Raymond James Ltd., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Trilon Securities Corporation, First Associates Investments Inc., and Wellington West Capital Inc. A copy of the preliminary prospectus may be obtained through www.sedar.com .
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Brascan Asset Management is a leading North American asset manager focused primarily on alternative investments. Brascan Asset Management invests in industry sectors in which it is able to realize superior risk-adjusted returns by leveraging the industry and operational expertise of Brascan and capitalizing on the synergies across its various funds. With $7 billion of assets under management, its clients include pension funds, life insurance companies, financial institutions, corporations and high net-worth individuals.
For further information please contact:
Mr. Bruce Robertson
President and Chief Executive Officer
Brascan Rising Distribution Management Ltd.
Tel: 416-363-0061
Email: brobertson@brascanam.com
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Note: This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “expect”, “anticipate”, “intend”, “estimate” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
