Toronto-based Harvest Portfolios Group Inc. repots that a preliminary prospectus for Brand Leaders Plus Income Fund has been filed with securities regulators authorities in each of the provinces and territories of Canada.
The closed-end fund proposes to issue Class A and Class U units priced at $10 per Class A Unit and US$10 per Class U unit.
The fund will invest in an equally-weighted portfolio of equity securities of 20 Brand Leaders from the Brand Leaders Investable Universe that have a market capitalization of at least US$10 billion at the time of investment and meet certain investment characteristics.
The fund’s investment objectives are to provide unitholders with (i) monthly cash distributions; (ii) the opportunity for capital appreciation; and (iii) lower overall volatility of portfolio returns than would otherwise be experienced by owning equity securities of Brand Leaders directly.
In order to seek to generate additional returns, Highstreet Asset Management Inc., the investment manager, will sell call options each month on equity securities held in the portfolio.
Highstreet will be responsible for the execution of the fund’s overall investment strategy, including managing the composition of the portfolio.
The fund’s distribution target is $0.0542 per Class A unit per month ($0.65 year representing an annual cash distribution of 6.5% based on the $10 per Class A unit issue price), or US$0.0542 per Class U unit per month (US$0.65 per year representing an annual cash distribution of 6.5% based on the US$10 per Class U unit issue price).
The syndicate of agents for the Offering is being co-led by CIBC, BMO Capital Markets and Scotia Capital Inc., and includes National Bank Financial Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., Raymond James Ltd., Dundee Securities Ltd., Global Securities Corporation, Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.