(August 16) – Quadravest Capital Management Inc. has come up with an exchange-traded fund that plays the financial stocks — Financial Services Income STREAMS Corp.
The firm has filed a preliminary prospectus for the new offering that will be structured as a mutual fund corporation. It will invest in the shares of companies included in the TSE Financial Services Index, the Standard & Poor’s Financials Index or the Standard & Poor’s MidCap Financials Index. The portfolio will be actively managed by Quadravest. The fund will also write covered calls in an attempt to boost returns.
The offering consists of dividend shares and capital shares, referred to as Structured Target Repayment and Managed Securities, or STREAMS. Each type of share will be priced at $25, subject to a 100 share minimum.
The selling agents will receive a 3% commission for each dividend share sold and 6% for each capital share. Merrill Lynch, TD Securities, BMO Nesbitt Burns, CIBC World Markets, National Bank Financial, Baystreetdirect, Bieber Securities, Canaccord Capital Corp., Goepel McDermid and Yorkton Securities.
The company will pay the expenses incurred in connection with the offering. As manager of the fund Quadravest will receive an annual administration fee of 0.1% of net asset value. For the portfolio management, it will receive a base management fee of 1.0%, and it will be able to earn bonus annual fees based on its performance.
This new product is the latest in a niche that Quadravest is quickly developing for itself. The firm is already the investment manager of Income Financial Trust, Split Yield Corporation, Ameristar RSP Income Trust and American Income Trust. Quadravest is considered the offering’s promoter, too.
-IE Staff