Skylon Advisors Inc., manager of Saxon Diversified Value Trust has filed a preliminary prospectus with all securities regulators in all provinces for an initial public offering of units of the trust.
Trust units will be priced at $25 per unit with a minimum investment of $2,500 from registered investment dealers across Canada.
According to Skylon, the trust will expose unitholders to the returns on a diversified portfolio of ongoing business trusts by way of one or more forward purchase and sale agreements and to the returns on a diversified portfolio of real estate investment trusts, oil and gas trusts, and energy infrastructure funds.
The trust is a 10-year instrument (terminating Dec. 31, 2012) with a conservative tax effective annual yield target of 8%. There is also the potential for annual special distributions in excess of the 8% target yield.
The Trust’s investment objectives are:
- to provide unitholders with a stable stream of tax efficient monthly distributions consisting primarily of capital gains and return of capital; and
- to preserve and enhance the net asset value of the trust to return at least the original subscription price of the units to unitholders on or about December 31, 2012.
The trust’s investment advisor is Howson Tattersall Investment Counsel Ltd., manager of the Saxon Mutual Funds. Richard Howson, executive vice president and CFO, will have primary responsibility for actively managing the portfolios. Howson uses a value style of investment management.
An application will be made to list the units on the Toronto Stock Exchange. Units of the trust are 100% RRSP, RRIF and RESP eligible.