Canadian Convertibles Income Plus Fund Files Preliminary Prospectus

TORONTO, Jan. 27 /CNW/ - Canadian Convertibles Income Plus Fund (the "Fund") announces that it has filed a preliminary prospectus dated January 26, 2011 with the securities regulatory authorities of all of the Canadian provinces and territories for an initial public offering of transferable trust units (the "Units") of the Fund at $10 per Unit.  The offering will be limited to a maximum of 7,500,000 Units ($75 million).

The Fund will obtain exposure to an actively managed diversified portfolio comprised primarily of convertible debentures of Canadian issuers. The Fund will be managed by Propel Capital Corporation ("Propel"). The Fund's portfolio manager will be Fiera Sceptre Inc. ("Fiera").

The Fund's investment objectives are to provide holders of Units with:

i. quarterly tax-advantaged distributions;
ii. preservation of capital; and
iii. the opportunity for capital appreciation.

The distributions are initially targeted to be 6.25% per annum on the subscription price of $10.00 per Unit ($0.15625 per Unit per quarter or $0.625 per annum). The Fund will not have a fixed distribution amount. The amount of quarterly distributions will be based on Propel and Fiera's assessment of anticipated cash flow from time to time.

Propel is responsible for creating, structuring, managing, and promoting the Fund. Propel will retain Fiera to provide portfolio management services to the Fund. Fiera is one of the largest independent money managers in Canada with over $28 billion in assets under management, including approximately $18 billion in fixed income assets.

The syndicate of agents for this offering is being led by BMO Capital Markets, CIBC and RBC Capital Markets, and includes National Bank Financial Inc., GMP Securities L.P.,  Scotia Capital Inc., HSBC Securities (Canada) Inc.,  Wellington West Capital Markets Inc., Desjardins Securities Inc., Macquarie Private Wealth Inc., Dundee Securities Corporation, Laurentian Bank Securities Inc. and Manulife Securities Incorporated.

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 agents noted 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.

SOURCE Canadian Convertibles Income Plus Fund

For further information:

please call Raj Lala, President, Propel Capital at 416-572-2364 or visit www.propelcapital.ca

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Canadian Convertibles Income Plus Fund

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