Toronto-based Bloom Investment Counsel, Inc. Thursday announced that Bloom U.S. Advantaged Income & Growth Fund has filed a preliminary prospectus for a public offering of Class A and Class U units at $10 per unit.
Class U units are designed for investors wishing to make their investment in U.S. dollars.
Bloom says the fund’s investment objectives are to provide investors with: exposure through a forward agreement to an actively managed portfolio comprised primarily of publicly traded high dividend paying U.S. common equity securities, including REITs; stable monthly tax-advantaged cash distributions; and the opportunity for capital appreciation.
The initial distribution target for the fund is expected to be $0.05 per Class A unit per month and US$0.05 per Class U unit per month representing a yield of 6% per year on the issue price.
Substantially all of the U.S. dollar value of the investment portfolio attributable to the Class A units will be hedged back to the Canadian dollar. The Class U units will not be hedged.
The syndicate of agents for the offering is being co-led by BMO Capital Markets, CIBC and RBC Capital Markets and includes National Bank Financial Inc., Raymond James Ltd., Scotiabank, TD Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., Mackie Research Capital Corp., Macquarie Private Wealth Inc., Dundee Securities Ltd., Industrial Alliance Securities Inc. and Manulife Securities Inc.