Investment Management has unveiled plans to eliminate all advisor-class units of its ETFs. Such units, which offer a service fee for advisors who purchase them on behalf of clients, are currently denoted by “.A”, “.D”, or “.V” after the ticker symbol of selected First Asset
By April 28, advisor-class units will no longer be issued, and conversions from common-class to advisor-class units will no longer be done.
On or around July 7, current unitholders will benefit from a reduction in the annual management fee in the advisor-class units they own, with the reduction being equal to the advisor service fee currently applied. Either concurrently or after a reasonable amount of time, outstanding advisor-class units will be converted into common-class units of the same ETF, pending all applicable regulatory and third-party approvals. The aggregate net asset value (NAV) of the common-class units will be the same as the aggregate NAV of the advisor-class units held prior to conversion.
Advisor-class units are currently available for twenty-seven First Asset
ETFs, including the First Asset
Canadian Convertible Bond ETF (CXF.A); the First Asset
Energy Giants Covered Call ETF (NXF.A, NXF.D); the First Asset
Morningstar Canada Value Index ETF (FXM.A); and the First Asset
Active Credit ETF (FAO.A, FAO.V).
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