(October 25 – 16:20 ET) – The
RSP-eligible foreign investment
vehicle trend continues. The latest
entrant in the field is AmeriStar
RSP Income Trust.
The trust is brought to you by
Quadravest Capital Management
Inc., which will act as its
investment manager. These are the
same folks that launched the
American Income Trust in June and
the Income Financial Trust in
February, raising $172.5 million
and $103.5 million respectively.
AmeriStar will also be issued
at $25 per unit. It aims to
generate an 8.5% annual yield,
distributed monthly to unitholders.
The American Income Trust is
currently trading at $24 per
unit, and paying a 8.9% yield.
Quadravest will receive a 0.2%
administration fee; a basic 1%
management fee, with performance
incentives (it will receive 20% of
the amount the trust generates
beyond beating its benchmark by
15%). It will also pay
administrative expenses, expected
to be worth about 0.5%. Resulting
in expected annual costs of 1.7%.
The firm will hold Treasury
securities using forward contracts
and other derivatives .
The units are slated for
mandatory redemption on January 1,
2010. There are also ongoing
monthly and annual redemption
provisions.
The following firms are involved
in the deal: including, Merrill
Lynch Canada Inc., Nesbitt Burns
Inc., RBC Dominion Securities Inc.,
TD Securities Inc., CIBC World
Markets Inc., ScotiaMcLeod Inc.,
National Bank Financial Corp.,
HSBC Securities (Canada) Inc.,
Canaccord Capital Inc., Goepel
McDermid Inc. and Bieber
Securities Inc.
For more please see: