/NOT FOR DISSEMINATION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA./
TORONTO, Jan. 28, 2016 /CNW/ - First Asset Investment
Management Inc. announces that it has called special meetings of
the shareholders of First Asset Core Canadian Equity Income
ETF (TSX: CSY), Can-Financials Income Corp. (TSX:
FIC.UN) and CanBanc 8 Income Corp. (TSX: CBF) (collectively,
the "Funds"). The meetings will be held jointly on
Wednesday February 24, 2016. If
required, an adjourned meeting will be held on Thursday, February 25, 2016.
At the meeting, shareholders of the Funds will be asked to
approve a variety of changes which will result, through a corporate
amalgamation with First Asset Fund Corp., in shareholders of each
Fund becoming shareholders of an exchange traded fund
("ETF") under an umbrella known as a "Corporate
Class". Each Fund will be a separate share class of a single
mutual fund corporation but will trade independently under its own
ETF ticker symbol, with its own specific investment objectives and
referable to a separate portfolio of investments; all as further
described in a joint management information circular to be mailed
to shareholders on or about January 28,
2016 (the "Circular").
As detailed in the Circular, the amalgamation will result in
several benefits to shareholders of all the Funds. These
benefits include: tax deferral advantages afforded by the ability
to switch between funds inside the Corporate Class structure,
pooled use of available tax-loss carry-forwards, broader investment
choices, as well as continued low costs and economies of scale.
In addition to the merger, shareholders of Can-Financials Income
Corp. are being asked to approve a change in investment objectives
in order to pursue a broader, more diversified and lower cost
strategy.
If the proposed transactions are approved, the following will
occur:
- First Asset Core Canadian Equity Income ETF will become part of
the Corporate Class structure, with its investment objectives,
strategies and restrictions unchanged.
- CanBanc 8 Income Corp. will become part of the Corporate Class
structure by merging into First Asset CanBanc Income ETF, an ETF
with substantially similar investment objectives and
strategies. As it is currently a closed-end fund, holders of
equity shares of CanBanc 8 Income Corp. will have the right to
redeem their investments prior to the implementation of the changes
even if they vote in favour of the proposed transactions.
- Can-Financials Income Corp. will no longer have a final
redemption date on or about February 28,
2016, but will instead become part of the Corporate Class
structure by merging into a newly formed ETF called First Asset
MSCI Canada Quality Index ETF, which will have the investment
objectives, strategies and restrictions described in the Circular.
As it is currently a closed end fund, holders of equity shares of
Can-Financials Income Corp. will have the right to redeem their
investments prior to the implementation of the changes even if they
vote in favour of the proposed transactions.
If shareholders approve the changes necessary to accomplish the
results above (all as further described in the Circular), the
manager (First Asset Investment Management Inc.) anticipates
implementing the amalgamations on or about March 31, 2016, subject to obtaining all
necessary regulatory and third party approvals.
Shareholders are encouraged to review the Circular for further
details regarding the meeting and the proposed
transactions.
First Asset – Smart SolutionsTM
First
Asset, a CI Financial Company, is a Canadian investment firm
delivering a comprehensive suite of smart ETF solutions. Rooted in
strong fundamentals, First Asset's smart solutions strive to
deliver better risk-adjusted returns than the broad market, while
helping investors achieve their personal financial goals.
TMFirst Asset and its logo are trademarks of First
Asset Capital Corp., a wholly-owned subsidiary of CI Financial
Corp. which is listed on the Toronto Stock Exchange under the
symbol "CIX". ®CI FINANCIAL is a registered trademark of CI
Investment Inc., used under license.
SOURCE First Asset