(January 16 – 15:30 ET) – The team at Quadravest Capital Management Inc. is launching yet another Structured Target Repayment and Managed Securities (STREAMS) product.

The Capital Gains Income STREAMS Corp. is formally structured as a mutual fund corporation offering equity dividend shares and capital yield shares. The fund will be invested in a diversified portfolio of companies in the S&P/TSE 60 Index or the Standard & Poor’s 500 Index. The fund will be RRSP eligible as Canadian content. The firm will also engage in covered call option writing in an effort to produce higher returns.

The fund intends to provide holders of the equity dividend shares with fixed, cumulative monthly cash dividends of 14.58¢ per share to yield 7% per year, and to pay these dividends as capital gains dividends, with capital repayment due December 1, 2013.

For the capital yield shares, the fund hopes to provide holders with regular monthly cash dividends targeted to yield 10% per year. It also plans to provide a special cash dividend on the last day of November in each year equal to the amount by which the net realized capital gains, dividends and option premiums earned on the managed portfolio.
-IE Staff