Mr. Rohit Mehta reports
NEW APPROACH TO ETF SPECIAL DISTRIBUTIONS - FIRST ASSET ETFS ANNOUNCE REVISED ESTIMATED 2014 ANNUAL SPECIAL DISTRIBUTIONS
First Asset Investment Management Inc. has revised special distributions in its First Asset exchange-traded funds, which include a 25-per-cent cash portion intended to assist unitholders in satisfying any potential tax liability. The revised estimated annual special year-end distributions for the 2014 tax year for the First Asset ETFs are as noted in the attached table.
"Advisers have told us that the tax liability associated with the annual special distributions in an ETF can require the selling of assets to generate cash. We are pleased to deliver the distributions in a manner that offers our investors a convenient and unique solution for this real-world investment need. Paying 25 per cent of the special distribution in cash will cover most investors' potential tax liability," explained Rohit Mehta, senior vice-president.
One-quarter of each special distribution will be paid in cash, and the balance of each special distribution will be paid by the issuance of units of the applicable First Asset ETF, and, immediately thereafter, the issued and outstanding capital of the First Asset ETF will be consolidated such that the number of issued and outstanding units of the First Asset ETF does not change.
The net asset value per unit of each First Asset ETF will decrease by an amount equal to the cash portion of the special distribution paid in respect of the First Asset ETF. Investors holding their units outside registered plans will have taxable amounts to report and an increase in the adjusted cost base of their investment attributable to the portion of the special distribution paid in units. In all cases, the special distributions will be paid on or before Jan. 6, 2015, to unitholders of record on Dec. 30, 2014. The ex dividend date in each case is Dec. 24, 2014.
Fund name TSX trading Estimated special distributions
symbol per fund unit as at Dec. 15, 2014
In cash In units
First Asset Morningstar Canada Dividend Target 30 Index ETF DXM $0.0383 $0.1148
DXM.A $0.0428 $0.1283
First Asset Morningstar National Bank Quebec Index ETF QXM $0.0845 $0.2535
QXM.A $0.0820 $0.2460
First Asset Morningstar Canada Value Index ETF FXM $0.1145 $0.3435
FXM.A $0.0993 $0.2978
First Asset Morningstar Canada Momentum Index ETF WXM $0.0293 $0.0878
WXM.A $0.0043 $0.0128
First Asset Morningstar U.S. Value Index ETF XXM $0.0000 $0.0000
XXM.A $0.0000 $0.0000
XXM.B $0.0638 $0.1913
XXM.D $0.0608 $0.1823
First Asset Morningstar International Value Index ETF VXM $0.0235 $0.0705
VXM.A $0.0433 $0.1298
VXM.B $0.0000 $0.0000
VXM.D $0.0000 $0.0000
First Asset Morningstar International Momentum Index ETF ZXM $0.0265 $0.0795
ZXM.A $0.0610 $0.1830
ZXM.B $0.0000 $0.0000
ZXM.D $0.0000 $0.0000
First Asset MSCI Canada Low Risk Weighted ETF RWC $0.0528 $0.1583
RWC.A $0.0535 $0.1605
First Asset MSCI USA Low Risk Weighted ETF RWU $0.0840 $0.2520
RWU.A $0.0648 $0.1943
RWU.B $0.0878 $0.2633
RWU.D $0.0940 $0.2820
First Asset MSCI Europe Low Risk Weighted ETF RWE $0.1678 $0.5033
RWE.A $0.2463 $0.7388
RWE.B $0.0218 $0.0653
RWE.D $0.0543 $0.1628
First Asset MSCI World Low Risk Weighted ETF RWW $0.0965 $0.2895
RWW.A $0.1688 $0.5063
RWW.B $0.1223 $0.3668
RWW.D $0.1240 $0.3720
First Asset Can-60 Covered Call ETF LXF $0.0000
LXF.A $0.0000
First Asset Can-Energy Covered Call ETF OXF $0.0000
OXF.A $0.0000
First Asset Can-Financials Covered Call ETF FXF $0.0000
FXF.A $0.0000
First Asset Can-Materials Covered Call ETF MXF $0.0000
MXF.A $0.0000
First Asset Canadian Convertible Bond ETF CXF $0.0000
CXF.A $0.0000
First Asset Tech Giants Covered Call ETF TXF $0.0000
TXF.A $0.0000
First Asset Morningstar U.S. Dividend Target 50 Index ETF UXM $0.0000
UXM.A $0.0000
UXM.B $0.0000
UXM.D $0.0000
First Asset Morningstar U.S. Momentum Index ETF YXM $0.0000
YXM.A $0.0000
YXM.B $0.0000
YXM.D $0.0000
First Asset Hamilton Capital European Bank ETF FHB $0.0000
FHB.A $0.0000
First Asset U.S. & Canada Lifeco Income ETF FLI $0.0000
FLI.A $0.0000
First Asset Active Canadian Dividend ETF FDV $0.0000
FDV.A $0.0000
First Asset Active Canadian REIT ETF FRF $0.0000
FRF.A $0.0000
First Asset Government Bond Barbell Index ETF GXF $0.0000
GXF.A $0.0000
First Asset Corporate Bond Barbell Index ETF KXF $0.0000
KXF.A $0.0000
First Asset All Canada Bond Barbell Index ETF AXF $0.0000
AXF.A $0.0000
First Asset Provincial Bond Index ETF PXF $0.0000
PXF.A $0.0000
First Asset 1-5 Year Laddered Government Strip Bond Index ETF BXF $0.0000
BXF.A $0.0000
First Asset Morningstar Emerging Markets Composite Bond Index ETF EXM $0.0000
EXM.A $0.0000
These estimated amounts are for the special distributions only and do not include the continuing monthly or quarterly cash distribution amounts, which were announced in a separate press release. These estimates replace the previous estimates announced on Dec. 5, 2014.
Possible changes to special-distribution-per-unit amounts
The per-unit amounts shown in the attached table in respect of units of any of the First Asset ETFs could change if there is an increase or decrease in the number of outstanding units of such First Asset ETF as a result of subscriptions or redemptions prior to the Dec. 30, 2014, record date. First Asset will issue a final press release on or about Dec. 30, 2014, which will provide the final amounts.
The actual taxable amounts of all distributions (cash and reinvested) for 2014, including the tax characteristics of the distributions, will be reported to brokers (through CDS Clearing and Depository Services Inc.) in early 2015.
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