Navina Capital Corp. has filed a preliminary prospectus for Navina/Lazard U.S. High Yield Bond Fund, the company said Thursday.

The fund plans a domestic offering of two classes of units at a price of $10 a unit.

The fund’s investment objectives are to provide unitholders with monthly tax-efficient distributions initially targeted to be 5.8¢ per unit, or 70¢ annually, to yield 7%, and the opportunity for capital appreciation.

Navina say the fund will obtain exposure to a portfolio comprised primarily of U.S. dollar denominated high yield corporate bonds actively managed by Lazard Asset Management (Canada), Inc. which will appoint Lazard Asset Management LLC as its sub-advisor.

Generally, at least 90% of the value of the portfolio’s U.S. dollar currency exposure will be hedged back to the Canadian dollar, subject to the fund’s investment restrictions.

The fund does not intend to list the units on any stock exchange. To provide investors with liquidity, commencing 30 days following closing of the offerings, units of each class may be redeemed on the last business day of each week, for a redemption price equal to the net asset value per unit of that class on that date less certain costs.

The offering is being made through a syndicate of agents led by BMO Nesbitt Burns Inc. and CIBC World Markets Inc. that includes National Bank Financial Inc., Scotia Capital Inc., Canaccord Capital Corp., Dundee Securities Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., Richardson Partners Financial Limited, Wellington West Capital Markets Inc., Desjardins Securities Inc., Manulife Securities Incorporated, Research Capital Corp. and Rothenberg Capital Management Inc.

IE