Brompton Advantaged Equal Weight Oil & Gas Income Fund has filed a preliminary prospectus for an initial public offering of trust units.

The investment objectives of the fund’s are to provide unitholders with the benefits of high monthly tax advantaged cash distributions and low management fees together with the opportunity for capital appreciation based on the performance of an equally weighted diversified portfolio of oil and gas income trusts held on a passive basis.

The manager of the fund, Brompton AOG Management Ltd., says the fund will enter into a forward agreement with the result that it is estimated that a significant portion of the Fund’s distributions will be a return of capital for tax purposes.

According to Brompton, fund’s return will be dependent upon a portfolio which will comprise an equal dollar amount of each oil and gas income trust listed on the TSX having a market capitalization of at least $500 million. As at January 18, there were 23 qualifying income trusts which represented approximately 93% of the market capitalization of all oil and gas income trusts listed on the TSX. As a result of the equal weight approach, each oil and gas income trust would constitute approximately 4.35% of the portfolio.

The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC World Markets Inc. and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corp., Desjardins Securities Inc., First Associates Investments Inc., Raymond James Ltd., Dundee Securities Corp., IPC Securities Corp., Wellington West Capital Inc., Acadian Securities Incorporated, Newport Securities Inc., and Research Capital Corp.