Canadian Convertibles Income Plus Fund to offer C$75 million units

By Susanna Moon

Chicago, Jan. 27 - Canadian Convertibles Income Plus Fund said it filed a preliminary prospectus with Canadian securities regulatory authorities to sell up to C$75 million transferable trust units at C$10 each in an initial public offering.

The fund will obtain exposure to an actively managed diversified portfolio comprising primarily convertible debentures of Canadian issuers, according to a press release.

The fund's portfolio manager will be Fiera Sceptre Inc. It will be managed by Toronto-based Propel Capital Corp.

The investment objectives are to provide holders with quarterly tax-advantaged distributions, preservation of capital and opportunity for capital appreciation.

The distributions are initially targeted at 6.25% per year on the subscription price of C$10 per unit. The fund will not have a fixed distribution amount. The amount of quarterly distributions will be based on Propel and Fiera's assessment of anticipated cash flow from time to time.

The syndicate of agents is being led by BMO Capital Markets, CIBC and RBC Capital Markets and includes National Bank Financial Inc., GMP Securities LP, Scotia Capital Inc., HSBC Securities (Canada) Inc., Wellington West Capital Markets Inc., Desjardins Securities Inc., Macquarie Private Wealth Inc., Dundee Securities Corp., Laurentian Bank Securities Inc. and Manulife Securities Inc.

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