Harvest Sustainable Income Fund has filed a preliminary prospectus with Canadian securities regulators for an offering of units.

The fund, managed by Toronto-based Harvest Portfolios Group Inc., proposes to issue trust units at $12 per unit.

The fund aims to provide unitholders with monthly distributions initially targeted to be 6.5¢ per unit, or 78¢ per year, representing an annual cash distribution of 6.50% based on the $12 per unit issue price. It also aims to provide unitholders with long-term capital preservation while reducing volatility.

The net proceeds of the offering will be invested in an actively managed diversified portfolio of securities of primarily publicly- traded Canadian issuers in order to seek to provide investors with exposure to issuers that Harvest Portfolios and Avenue Investment Management Inc., the investment manager, believe offer sustainable income, capital preservation and reduced volatility.

Avenue Investment Management will be responsible for the execution of the fund’s overall investment strategy, including managing the composition of the portfolio of the fund.

The syndicate of agents is being co-led by BMO Nesbitt Burns Inc., CIBC and RBC Capital Markets and includes Scotia Capital Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp., Dundee Securities Corporation, Raymond James Ltd., Desjardins Securities Inc., Macquarie Private Wealth Inc., Wellington West Capital Markets Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

IE