Canadian Advantaged Convertibles Fund has filed a preliminary prospectus with the Canadian securities regulators for an initial public offering of trust units at $10 per unit.

The fund has been created to obtain exposure to a diversified portfolio of convertible debentures of Canadian issuers. The fund will be managed by Toronto-based First Asset Investment Management Inc.

The fund’s objectives are to provide investors with: quarterly tax-advantaged distributions; and the opportunity for capital appreciation.

The distributions are initially targeted to be 6% per year on the subscription price of $10.00 per unit ($0.15 per unit per quarter or $0.60 per year). The fund will not have a fixed distribution amount. The amount of quarterly distributions will be based on First Asset’s estimate of distributable cash flow of the fund for the period.

First Asset manages and administers in excess of $2 billion in assets, as of November 5, 2010, including approximately $450 million in convertible debentures.

The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and includes, BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Private Wealth Inc. and Mackie Research Capital Corporation.

IE