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

The fund’s investment objective is to provide unitholders with monthly distributions initially targeted to be 9¢ per trust unit, or $1.08 annually, representing an annual cash distribution of 9% based on the $12 per unit issue price.

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

It 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.

The manager has appointed Stanton Asset Management Inc.to provide investment advisory services to the fund. Stanton will work with Savtrev Inc. (O’Leary) to identify securities providing income and the potential for capital appreciation.

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 a subscription price of $12 on or before 17:00 ET on Nov. 30, 2010.

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