Catapult Financial Offering Actively-Managed Preferred Share Trust

Catapult Financial, a wholly owned subsidiary of Aston Hill has announced that:

Preferred Share Investment Trust (the “Trust”) announces that it has filed a preliminary prospectus with the securities regulatory authorities of all of the Canadian provinces for an initial public offering of trust units (the “Units”).

The Trust has been created to invest in an actively managed portfolio (the “Portfolio”) comprised primarily of investment grade preferred shares and to a lesser extent investment grade corporate debt and convertible bonds in order to provide Unitholders with the opportunity for growth of their investment value through any capital appreciation of the Portfolio and quarterly distributions.

The Portfolio will be actively managed by Catapult Financial Management Inc., a subsidiary of Aston Hill Financial Inc. Mr. Ben Cheng will be the lead portfolio manager responsible for the Portfolio. First Asset Investment Management Inc. will act as the manager of the Trust.

The Trust’s investment objectives are:

(a) to provide Unitholders with quarterly distributions, estimated to initially be $0.175 per Unit ($0.70 per annum representing an annual yield of 7.0% based on the original issue price of a Unit of $10.00); and

(b) to provide Unitholders with the opportunity for capital appreciation from the performance of the Portfolio.

This entry was posted on Monday, February 9th, 2009 at 7:21 pm and is filed under Miscellaneous News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Catapult Financial Offering Actively-Managed Preferred Share Trust”

  1. jiHymas says:
    February 11, 2009 at 1:24 am

    On an unrelated thread, Assiduous Reader pugwash commented:

    Hello Mr Hymas,

    Your sage views on this instrument would be appreciated- I tried to understand it from the prospectus but got confused. How does it differ from the Malachite Fund?

    Well … there’s a lot of differences.

    • I manage Malachite Fund, but the Catapult Fund will be managed by Mr. Cheng
    • Catapult has a prospectus, while Malachite is sold via Offering Memorandum
    • Catapult is a new fund; Malachite will celebrate the completion of its eighth year at the end of March
    • Malachite invests only in preferred shares trading on the Toronto Stock Exchange; Catapult’s indicative portfolio is 32% bonds, 6% convertible bonds
    • Catapult may take hedges in derivatives to decrease interest rate risk; MAPF can’t.
    • MAPF has fees on a sliding scale, topping at 1%, as well as expenses currently capped at 0.50%; Catapult has a management fee of 2.1%, Servicing Fee of 0.4%, normal expenses and repayment of issue expenses of 5.25%
    • Catapult intends to lever up the portfolio 1.5:1; Malachite can lever up to 1.25:1 but this leverage is used only to facilitate trading.

    Those are the main differences I see.

  2. PSF.UN: Unusual Benchmarking! « PrefBlog says:
    April 21, 2011 at 7:35 pm

    […] Share Investment Trust was mentioned previously on PrefBlog, in the post Catapult Financial Offering Actively-Managed Preferred Share Trust. I haven’t paid much attention to it since, because the name is something of a misnomer […]

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