Changes ahead for First Asset ETFs

Changes ahead for First Asset ETFs

Changes ahead for First Asset ETFs First Asset Investment Management has announced the termination of the following funds from its menu:
 
Fund Name TSX Ticker(s)
First Asset Provincial Bond Index ETF PXF, PXF.A
First Asset Core Balanced ETF CBB, CBB.A
First Asset Global Momentum Class ETF – Unhedged and CAD Hedged Classes FGL, FGM
First Asset Global Value Class ETF – Unhedged and CAD Hedged Classes FGU, FGV
 
According to a statement from the firm, the funds will terminate on or around Jan. 16, 2017.

First Asset that units or shares of each fund be de-listed from the TSX on or about Jan. 13, 2017. Until then, units or shares of each fund will be listed and tradeable on the TSX. The net assets will be liquidated at the soonest possible time following the termination date, with the proceeds being distributed pro rata among holders of each fund.

In the same release, the firm issued a reminder that holders of First Asset Global Momentum Class ETF (FGL), First Asset Global Momentum Class (CAD Hedged) ETF (FGM), First Asset Global Value Class ETF (FGU), and First Asset Global Value Class (CAD Hedged) ETF (FGV) – all of which are corporate class funds – may switch to any one or more of the remaining share classes of First Asset Fund Corp. on a tax-deferred basis prior to Jan. 1, 2017.

Certain proposals in the 2016 Canadian Federal Budget  are set to impact the Income Tax Act (Canada) beginning Jan. 1, 2017, making an exchange of shares of one corporate class fund for shares of another a “deemed disposition for income tax purposes,” according to the statement.


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