O’Leary Funds Management LP is poised to launch a new closed-end fund offering investors exposure to major emerging markets such as Brazil, Russia, India and China (BRIC), as well as other rapidly developing countries.
A preliminary prospectus for O’Leary BRIC-Plus Income & Growth Fund has been filed with regulatory authorities, O’Leary Funds Management LP said Thursday.
The fund has been created to invest globally primarily in publicly-traded dividend-paying equity securities, preferred shares, convertible debt securities and corporate bonds of issuers having market capitalizations of at least $1 billion, and having significant operations or sales in BRIC countries, as well as other rapidly developing countries such as Taiwan, South Korea, Australia, Mexico and others.
O’Leary Funds Management LP has appointed Stanton Asset Management Inc. to provide investment advisory services to the fund. Stanton will work with Savtrev, Inc. to identify securities providing income and the potential for capital appreciation.
The fund’s investment objectives are to maximize total return for unitholders, consisting of distributions, interest and dividend income and capitalized appreciation; and to provide unitholders with monthly distributions initially targeted to be 5¢ per trust unit (or 60¢ a year, representing an annual cash distribution of 5% based on the $12 per unit issue price).
The fund proposes to issue units at a price of $12 per unit. Each Unit consists of one transferable trust unit and one warrant. The units will separate into trust units and warrants upon the earlier of the closing of the over-allotment option and the 30th day following the closing of the offering.
Each warrant entitles the holder to purchase one trust unit at a subscription price of $12 on or before 17:00 ET on June 30, 2011. Warrants not exercised by then will be void and of no value.
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Nesbitt Burns Inc., Scotia Capital Inc., National Bank Financial Inc., Canaccord Adams, HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Dundee Securities Corp., GMP Securities L.P., Raymond James Ltd., Wellington West Capital Markets Inc., Desjardins Securities Inc., Manulife Securities Inc., MGI Securities Inc., Paradigm Capital Inc. and Research Capital Corp.
IE
O’Leary BRIC-Plus Income & Growth Fund files preliminary prospectus
Fund targeting an annual cash distribution of 5%
- By: IE Staff
- January 28, 2010 January 28, 2010
- 11:31