ClaringtonFunds Inc. today introduced the Clarington Income Trust Fund. The new fund will invest in a diversified portfolio of income trusts including pipelines and power, oil and gas, real estate, and diversified business trusts.

Institutional money managers KBSH Capital Management Inc. will manage the fund. KBSH has 23 years of broad experience assessing and valuing investment opportunities for their clients through both equity and fixed-income portfolios. Of the $7 billion KBSH currently manages, $2.5 billion is in fixed-income securities.

The fund is designed to provide a monthly distribution of 7ยข per unit and will be launched with a net asset value of $10 per unit. Any additional income generated in the portfolio will be distributed annually each December.

It is expected that a portion of the distribution will be made up of capital gains, income, dividends and/or a return of capital, which would provide greater tax efficiency to investors.

“The Clarington Income Trust Fund will complement traditional income portfolios by providing investors with the enhanced yield and added diversification offered by income trusts,” says Eric Frape, Clarington’s VP of product management.