Global Convertibles Short Duration Fund to launch IPO of trust units

By Jennifer Chiou

New York, Jan. 30 - The Global Convertibles Short Duration Fund announced that it has filed a preliminary prospectus for its initial public offering of transferable trust class A units in all Canadian provinces and territories.

The units will sell at C$10.00 apiece, and the fund's distributions are initially targeted to be 6% per year.

According to a press release, the fund will invest in an actively managed portfolio consisting primarily of convertible securities and other fixed-income and equity securities of global issuers. It will seek to reduce the risk of rising interest rates by maintaining a weighted average portfolio duration of below three years.

Propel Capital Corp. is the manager and promoter of the fund, and Credit Suisse AG will provide portfolio management services.

CIBC and RBC Capital Markets will lead the syndicate of agents, which includes National Bank Financial Inc., Scotiabank, TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd. and Manulife Securities Inc.

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