A preliminary prospectus for the O’Leary Canadian Equity Income Fund has been filed with Canadian securities regulators, O’Leary Funds Management LP said Monday.

The fund’s investment objectives are: to maximize total return for unitholders, and to provide unitholders with monthly distributions initially targeted to be 8¢ per trust unit. That works out to 96¢ per year, representing an annual cash distribution of 8% based on the $12 per unit issue price, O’Leary says.

The fund has been created to invest in an actively managed portfolio comprised primarily of publicly traded securities of issuers domiciled in Canada providing investors with both income and potential for capital appreciation. It will initially invest primarily in income trust units and, to a lesser extent, dividend-paying equity securities, corporate bonds, convertible debt securities and preferred shares of such issuers.

O’Leary Funds Management 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.

Each fund unit consists of one transferable trust unit and one trust unit purchase 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 November 30. 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 Capital Markets, Scotia Capital Inc., National Bank Financial Inc., Blackmont Capital Inc., Canaccord Capital Corp., GMP Securities L.P., HSBC Securities (Canada) Inc., Wellington West Capital Markets Inc., Dundee Securities Corp., MGI Securities Inc., Raymond James Ltd., Desjardins Securities Corp., Manulife Securities Incorporated and Research Capital Corp.

IE