A preliminary prospectus for Tech Achievers Growth & Income Fund has been filed with Canadian securities regulators, Toronto-based Harvest Portfolios Group Inc. announced this week.
The fund’s investment objectives are to provide unitholders with: the opportunity for capital appreciation; monthly cash distributions; and lower overall volatility of portfolio returns than would otherwise be experienced by owning equity securities of technology achievers directly.
The fund will invest in an equally-weighted portfolio of equities of 20 technology issuers, which are issuers listed on a North American stock exchange that are included in the information technology, health care equipment, health care technology, wireless telecommunication services or electrical components and equipment sub-sectors, have a market capitalization of at least US$10 billion, and have options in respect of their equity securities listed on a recognized options exchange.
In order to seek to generate additional returns, Highstreet Asset Management Inc. (the options advisor) may sell call options each month on up to 33% of each of the equity securities held in the portfolio.
Harvest will be responsible for the execution of the fund’s overall investment strategy, including managing the composition of the portfolio.
The distribution amount will be $0.0583 per unit per month ($0.70 per year), representing an annual cash distribution of 7% based on the $10.00 per unit issue price, Harvest says.
The syndicate of agents for the offering is being co-led by BMO Capital Markets, CIBC and Scotiabank, and includes National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Dundee Securities Ltd., PI Financial Corp., Desjardins Securities Inc., Global Securities Corp. and Industrial Alliance Securities Inc.