A preliminary prospectus for Canadian Premium Select Income Fund has been filed with Canadian securities regulators, Oakville-based Harvest Portfolios Group Inc. reports.

The fund proposes to issue units priced at $12.00. Each unit consists of one transferable trust unit and one trust unit purchase warrant. The units will separate into trust units and warrants upon the earlier of the closing of the over-allotment option and the 30th day following the closing of the offering. Each warrant entitles the holder to purchase one trust unit for $12.00 at 17:00 ET on May 31, 2013.

The fund will invest in a diversified portfolio of equity securities of 15 Canadian issuers with a market capitalization of at least $1 billion, selected and rebalanced semi-annually on an equally weighted basis by investment manager Highstreet Asset Management Inc. from the S&P/TSX Composite Dividend Index. Highstreet will be responsible for the execution of the fund’s overall investment strategy, including managing the composition of the portfolio.

The investment objectives of the fund are to provide unitholders with monthly cash distributions; the opportunity for capital appreciation; and lower overall volatility of the portfolio returns than would otherwise be experienced by owning the equities held by the fund directly. Highstreet will sell call options on not more than 33% of the equity securities of each issuer held in the portfolio.

Harvest Portfolios says the indicative distribution amount is initially targeted to be $0.065 per trust ynit per month ($0.78 per year) representing an annual cash distribution of 6.5% based on the $12.00 per unit issue price.

The syndicate of agents is being led by CIBC and BMO Capital Markets, and includes RBC Capital Markets, Canaccord Genuity Corp., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Desjardins Securities Inc., Raymond James Ltd., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc., Dundee Securities Ltd. and Industrial Alliance Securities Inc.

IE