North American Preferred Share Fund (formerly North American Preferred Share Advantaged Fund) has filed a final prospectus with Canadian securities regulatory authorities of for an initial public offering of transferable trust units. The offering price is $25 per unit.
The closed-end fund has been created to invest in an actively managed portfolio consisting principally of Canadian and U.S. preferred shares. The fund’s investment objectives are to provide unitholders with stable monthly cash distributions and preservation of capital.
The fund’s distributions are initially targeted to be 5.5% per year on the subscription price of $25 ($0.1146 per unit per month or $1.375 per year).
Toronto-based Propel Capital Crop. is the manager and promoter of the fund. Propel has retained Montreal-based Fiera Capital Corp. (TSX:FSZ) to provide portfolio management services. Fiera is one of the largest independent money managers in Canada with over $58 billion in assets under management, including approximately $1.75 billion in preferred securities.
The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc., and RBC Capital Markets, and includes BMO Capital Markets, GMP Securities L.P., Scotiabank, TD Securities Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Corporation, and Manulife Securities Inc.