Sprott Flatiron Canadian Convertible Strategies Trust has filed a preliminary prospectus in connection with its offering of trust units, Toronto-based Sprott Asset Management LP said Wednesday.
Receipt for the preliminary prospectus has been issued by the securities commissions and regulatory authorities in each of the provinces and territories of Canada.
The closed-end fund has been created to provide exposure, on tax-advantaged basis, to an actively managed diversified portfolio designed to be equity market neutral and focused primarily on convertible debentures and warrants of Canadian issuers.
The fund’s investment objectives are: to provide attractive risk-adjusted returns with low correlation to traditional equity and fixed-income indices; and to provide monthly tax-advantaged distributions.
The portfolio will be co-managed by Steve Duenkler and Parm Kalirai, co-founders of Toronto-based Flatiron Capital Management Partners, which will act as sub-advisor to the fund. Duenkler and Kalirai have been successfully managing convertible arbitrage strategies for more than 12 years.
The offering is being made through a syndicate of agents led by RBC Capital Markets and CIBC and including TD Securities Inc., GMP Securities Ltd., National Bank Financial, BMO Capital Markets, Canaccord Genuity Corp., Macquarie Private Wealth Ltd., Raymond James Ltd., Scotiabank, Desjardins Securities Inc. and Mackie Research Capital Corporation.
Sprott Asset Management and Flatiron Capital Management are both affliated with Toronto-based Sprott Inc. (TSX:SII).