Sentry Select Capital Corp. has filed a preliminary prospectus across Canada qualifying units to be issued for MBS Adjustable Rate Income Fund.

The fund is designed to provide unitholders with a tax-efficient stream of monthly cash distributions.

In a release, the company said distributions in any year are targeted to approximate the average 10-year U.S. Treasury Note yield for that year plus 3%.

In order to meet its investment objectives, the fund intends to obtain exposure to the performance of Mortgage-Backed Securities Limited Partnership. The partnership invests in a portfolio consisting primarily of AAA rated mortgage-backed securities issued by the U.S. agencies commonly known as Ginnie Mae, Fannie Mae and Freddie Mac.

Fixed Income Discount Advisory Co is the investment manager to the partnership.

The Agents on the offering are CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., BMO Nesbitt Burns Inc., TD Securities Inc., Canaccord Capital Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., First Associates Investments Inc., Berkshire Securities Inc., Desjardins Securities Inc. and Wellington West Capital Inc.

The fund is an investment trust established under the laws of the Province of Ontario.