Front Street Balanced Resource Income Fund

Front Street Balanced Resource Income Fund

April 10, 2012 09:14 ET

Front Street Announces Filing of Front Street Balanced Resource Income Fund Preliminary Prospectus

TORONTO, ONTARIO--(Marketwire - April 10, 2012) -


Front Street Capital is pleased to announce the filing of a preliminary prospectus dated April 3, 2012 for a proposed initial public offering of transferable convertible Class A Units and Class F Units (collectively, the "Units") of Front Street Balanced Resource Income Fund at $10.00 per Unit. Front Street Balanced Resource Income Fund's investment objectives are to provide holders of Units with (i) monthly cash distributions, and (ii) the potential for capital appreciation, through an investment in a balanced portfolio of equity and fixed income securities primarily issued by, or which provide exposure to, resource-focused issuers that operate in the North American energy, infrastructure, metals, mining, materials, refining and agricultural sectors and their service providers. Front Street Capital 2004, an Ontario general partnership, will act as the investment fund manager and promoter of the Fund and will manage and direct the business, operations and affairs of the Fund. Its affiliate, Front Street Investment Management Inc., will provide all portfolio management services required by the Fund.

The Fund intends to pay monthly distributions. The initial indicative distribution of the Fund is $0.05 per Unit per month ($0.60 per Unit per annum) representing a yield of 6.0% per annum based on the $10.00 per Unit issue price.

The proposed offering is being made through a syndicate of investment dealers led by BMO Nesbitt Burns Inc., and which also includes CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities Ltd., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Sherbrooke Street Capital (SSC) Inc. and Tuscarora Capital Inc.

A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from one of the dealers listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

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