Manulife Investments has filed a preliminary prospectus for a closed-end investment fund, the Manulife Global Healthcare Trust.
In a statement released on Oct. 23, Manulife said the fund's actively managed portfolio will be made up of equity securities of global healthcare companies that are developing and commercializing drugs, therapeutic solutions, and/or medical devices. The fund aims to provide investors with both the opportunity for capital appreciation as well as monthly cash distributions.
The Class A and Class U units of the fund will be available in all Canadian provinces and territories at a price of $10.00 in the initial public offering, and the target monthly distribution amount is $0.0416 per Class A unit (or $0.50 per annum), and US$0.0416 per Class U unit (or US$0.50 per annum), representing an annual yield of 5% on the issue price.
To supplement the dividend income generated by the fund, Manulife says it has retained Sherpa Asset Management to write covered call options on various securities from time to time, up to maximum of 25% of the value of the portfolio.