The O’Leary Advantaged Tactical Global Corporate Bond Fund has closed its initial public offering of 9 million units, O’Leary Funds Management LP announced on Friday.

With units issued at a price of $12.00 each, aggregate gross proceeds of the offering totalled $108 million. Each unit consists of one transferable trust unit and one trust unit purchase warrant.

The fund is an investment trust with objectives to: (i) preserve capital; and (ii) provide unit holders with tax advantaged monthly distributions initially targeted to be $0.06 per trust unit, representing an annual yield of 6% based on the $12.00 per unit issue price.

The fund was created to provide investors with the opportunity to reallocate their Canadian fixed income investments into a portfolio comprised of corporate fixed-rate and floating-rate debt, corporate fixed-to-floating-rate debt, and convertible debt offered by global issuers that

Stanton Asset Management Inc., which provides investment advisory services to the fund, believes the portfolio will provide investors with attractive yield to maturity; more stability than a portfolio of global equity securities; and capital preservation in a period of rising interest rates and gradual economic recovery.

The fund has granted the agents an over-allotment option exercisable for a period of 30 days to acquire up to an additional 1.35 million units.

IE