Middlefield Group is launching the INDEXPLUS 2 Income Fund, which offer investors an opportunity to beat the S&P/TSX Capped Income Trust Index.
The objectives of the fund are to provide unitholders with high levels of monthly distributions; to outperform the S&P/TSX Capped Income Trust Index on a total return basis over the life of the fund, and to return the original issue price of the units upon termination on Dec. 31, 2015.
Middelfield says the fund intends to achieve these objectives by investing at least 50% and up to 80% of its assets in a portfolio that will track the S&P/TSX Capped Income Trust Index.
The remainder of the fund’s assets will be actively managed within the income trust sector in order to enhance returns and mitigate the risks associated with indexing. As well, at least 50% of the total portfolio will be invested in business trusts.
Middlefield says unitholders will benefit from low management fees as well as the extensive investment management experience of Guardian Capital Inc. and Middlefield Securities Ltd., who will act as the co-advisors.
Investors will have the option of paying for units by exchanging units of certain specified income trusts, subject to the terms and conditions set forth in the prospectus.
Middlefield INDEXPLUS 2 Management Ltd., an affiliate of Middlefield Group, will provide administrative services to the Fund.
The syndicate of agents is being co-led by CIBC World Markets Inc. and RBC Capital Markets, and includes TD Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., First Associates Investments Inc., Raymond James Ltd., Wellington West Capital Inc., Acadian Securities Inc., Middlefield Securities Ltd. and Research Capital Corp.
The final prospectus of fund has been filed and closing is scheduled for November 18. The maximum amount of the offering will be $100 million.