Global Dividend Growers Income Fund has filed a preliminary prospectus for an initial public offering, Calgary-based Middlefield Group said Friday.
The fund has been designed to provide investors with a low-cost investment in global issuers that have exhibited a history of strong dividend growth.
A portion of the fund’s assets will be invested in an equally-weighted passively managed portfolio consisting of the equity securities of the 20 largest publicly-listed issuers by market capitalization globally which have exhibited cumulative dividend growth of at least 10% over the last five years as well as an indicated dividend yield of at least 3%.
The remainder of the fund’s assets will be invested in an actively managed diversified portfolio primarily comprised of global issuers which have exhibited strong dividend growth.
The initial target distribution yield for the fund is 6.0% annually based on the original $10 subscription price, or $0.05 per unit per month or $0.60 per unit per year.
Prospective purchasers investing in the fund will have the option of paying for units in cash or by exchanging securities of issuers listed in the preliminary prospectus.
Middlefield Capital Corp. will act as the investment advisor to the fund.
The syndicate of agents is being co-led by CIBC and RBC Capital Markets and includes Scotiabank, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond James Ltd., GMP Securities L.P., Mackie Research Capital Corporation, Middlefield Capital Corporation and Dundee Securities Ltd.