Asset managers move two CEFs, citing cost-savings as one of the main reasons
Faircourt Asset Management has credited cost-savings among the reasons for switching two closed-end funds from the TSX to the NEO Exchange.
The Faircourt Split Trust, including both units (FCS.UN) and preferred securities (FCS.PR.C) and the Faircourt Gold Income Corp (FGX), were delisted from the TSX on December 20 and will begin trading today on the NEO. Following the migration, Faircourt anticipates cost-savings from the move, which they intend to pass on to security holders.
The company becomes the 12th issuer to have products on the NEO and the fourth to migrate products from the TSX to NEO.
Charles Taerk, president and CEO of Faircourt Asset Management, said: “When we launched these Funds over 10 years ago, there was only one exchange for us to list on. Today, we have options because of NEO and their efforts to bring competition to the Canadian capital market.
“We look forward to migrating our funds to NEO later this week and begin realizing costs savings with our listing fees. We are committed to pass along these savings to our security holders.”
When the funds complete their migration, Faircourt will become the 12th and newest fund provider to list products on NEO. The Exchange is home to eight corporate listings, more than 65 fund listings from 11 Canadian providers and consistently facilitates approximately 22% of all Canadian ETF trading volume.
“We are pleased to welcome Faircourt to NEO and are proud to see yet another fund company realize the positive impact and cost-savings we can enable for investors,” said Jos Schmitt, President and CEO, NEO.
“We created our exchange to meet the needs of long-term investors and capital-raising companies. The listing fees we charge for closed-end funds are based on our work-effort, not exaggerated by being the ‘only place’ where you can list.
“This is competition at its best and it can easily be leveraged by all close-end fund providers, to the direct and immediate benefit of their investors. The process to change a fund’s listing venue is simple and straightforward, with typically less than a month from application to migration.”
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