A preliminary prospectus for Canadian 50 Advantaged Preferred Share Fund has been filed with Canadian regulators for an initial public offering, Connor, Clark & Lunn Capital Markets Inc., the fund’s manager, said Thursday.
The closed-end investment fund proposes to offer class A and F units at a price of $25 per unit.
CC&L says the fund’s investment objectives are to provide tax-advantaged quarterly cash distributions consisting primarily of returns of capital; and low-cost exposure to the total return approximating that of the BMO Capital Markets 50 Preferred Share Index. The fund’s initial distribution target is expected to be $0.3125 per unit per quarter representing an initial yield on the unit issue price of 5% per year, consisting primarily of returns of capital.
The Preferred Share 50 Index is a market value weighted index created in 1992 to provide a benchmark representing the Canadian preferred share market and includes 50 Canadian preferred share issues listed on the Toronto Stock Exchange.
CC&L will act as manager and portfolio manager of the fund. BMO Asset Management Inc. will be retained to manage the portfolio.
The units are being offered for sale by a syndicate of agents co-led by BMO Capital Markets, CIBC and RBC Capital Markets, and including Scotiabank, TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Macquarie Private Wealth Inc., Canaccord Genuity Corp., Raymond James Ltd. and Mackie Research Capital Corp.