East Coast Investment Grade Income Fund has filed a preliminary prospectus with Canadian securities regulators in connection with its offering of trust units, Toronto-based Arrow Capital Management said Thursday

Arrow says the closed-end fund has been created to provide exposure, on a tax-advantaged basis, to a diversified portfolio of Canadian investment grade corporate bonds, while seeking to eliminate the interest rate risk associated with such bonds.

The fund will seek to maximize total returns investors while reducing risk, and is intended to “provide unitholders with attractive monthly tax-advantaged cash distributions,” Arrow says.

The fund will be advised by Toronto-based East Coast Fund Management Inc. The investment and trading team will be led by Mike MacBain, who is a fixed income specialist with over 25 years of experience in fixed income, money markets, derivatives and foreign exchange as the former president of TD Securities and head of global FIC (fixed income, cash, derivatives and currencies) at RBC Capital Markets.

The offering is being made through a syndicate of agents led by RBC Capital Markets and including CIBC, TD Securities Inc., BMO Capital Markets, Scotiabank, Canaccord Genuity Corp., GMP Securities LP, Macquarie Private Wealth Inc., Raymond James Ltd. and Manulife Securities Inc.