Front Street Balanced Resource Income Fund has filed a preliminary prospectus for a domestic initial public offering of transferable convertible class A and F units, Front Street Capital said Tuesday.
The fund’s investment objectives are to provide investors with monthly cash distributions, and the potential for capital appreciation, through an investment in a balanced portfolio of equity and fixed income securities that provide exposure to resource-focused issuers that operate in the North American energy, infrastructure, metals, mining, materials, refining and agricultural sectors and their service providers.
Front Street Capital 2004, an Ontario general partnership, will act as the investment fund manager and promoter of the fund and will manage and direct the business, operations and affairs of the fund. Its affiliate, Toronto-based Front Street Investment Management Inc., will provide all portfolio management services required by the fund.
The fund intends to pay monthly distributions. The initial distribution is expected to be $0.05 per unit per month, or $0.60 per unit per year. That represents a yield of 6.0% per year based on the $10 per unit issue price.
The proposed offering is being made through a syndicate of investment dealers led by BMO Nesbitt Burns Inc., and which also includes CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities Ltd., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Sherbrooke Street Capital (SSC) Inc. and Tuscarora Capital Inc.