A final prospectus for the initial public offering of the O’Leary Canadian Income Opportunities Fund has been filed with Canadian securities regulatory authorities, O’Leary Funds Management said Friday.

The fund has been created to invest in an actively managed portfolio comprised primarily of publicly traded securities of Canadian mid- and large-cap issuers providing investors with both income and potential for capital appreciation.

The fund will invest primarily in corporate bonds, convertible debt securities, preferred shares, as well as income trust units and dividend-paying equity securities of such issuers.

Stanton Asset Management Inc., the portfolio Advisor, believes that market conditions have become attractive for investing in income-generating securities of Canadian mid- and large-cap issuers, including securities that are senior to common equities and securities of income trusts.

The portfolio advisor and O’Leary believe that a portfolio of primarily Canadian corporate bonds, convertible debt securities, preferred shares, income trust units and dividend-paying equities, will provide investors with the opportunity to earn attractive total returns and income, while diversifying risk.

The offering is expected to close on May 27 at 12:00 ET.

The fund proposes to issue units at a price of $12 per unit. Each 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 $12 on or before 17:00 ET on Nov. 30, 2010.

The fund’s investment objectives are: to maximize total return for unitholders, and to provide unitholders with monthly distributions initially targeted to be 9¢ per trust unit ($1.08 per year representing an annual cash distribution of 9% based on the $12 per unit issue price).

The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Blackmont Capital Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Capital Corp., Dundee Securities Corp. and Wellington West Capital Markets Inc.

IE