(January 12 – 12:15 ET) — YMG Capital Management Inc. filed a preliminary prospectus for the launch of the U.S. Technology Gorilla RSP Fund as a closed-end trust.
As the name implies the fund will invest in large cap U.S.-based tech companies, but will not count as foreign property. It will use derivatives to focus its strategy on the Internet infrastructure, e-commerce, hardware and software, telecom equipment and semiconductors. It expects to hold 20 to 30 names in the portfolio, which will be managed by YMG, with R.N. Croft Financial Group Inc. of Toronto adding covered call option writing to attempt to reduce risk and boost returns.
The fund hopes to return 8.5% in annual yield. Units will cost $25 each and the trust will be wound up in 2010. YMG will charge a 1.25% management fee, the fund will pay its expenses and a further 50 basis points is expected to be charged in transaction costs.
The underwriting commission rate is not revealed in the prospectus, but would also be charged against the initial investment. The deal is being handled by Charles Schwab Canada Co., CIBC World Markets Inc., HSBC Securities (Canada) Inc., Canaccord Capital Inc., Yorkton Securities Inc. and Research Capital Corp.
IE Staff