PFR.UN Quietly Files Preliminary Long Form Prospectus

SEDAR has a copy of this – there has been no news release. I have an interest in this vehicle having written about it, so thought I’d point out the prospectus.

It contains the paragraph:

In addition, if the call or redemption price of a Notional Security is less than the Traded Price upon its inclusion in the Notional Preferred Portfolio, and that Notional Security is redeemed, NAV will be negatively impacted. 20% of the Notional Securities are callable at par prior to the Termination Date, and the weighted average Trading Price premium above par for these securities (as of , 2007) is approximately %. As a result, if all such Notional Securities are called prior to the Termination Date, all else being held constant, the NAV would decrease by approximately 

Why shouldn’t they issue more units? The Globe and Mail reports that the NAV is $24.00 compared to a market price of $25.50.

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