An anonymous director reports

MONEDA LATAM CORPORATE BOND FUND ANNOUNCES THE MATURITY OF ITS FORWARD AGREEMENT AND PROPOSED CHANGES TO ITS STRUCTURE

As a result of changes to the Income Tax Act (Canada), Moneda LatAm Corporate Bond Fund's forward agreement will be settled on Nov. 3, 2016, the scheduled maturity date of the forward agreement. Following this, it is proposed that the fund will invest directly in the securities of Moneda Deuda Latinoamericana Fondo de Inversion, a $1.1-billion (U.S.) (as at June 30, 2016) Chilean-listed investment fund, which is the notional portfolio that the forward agreement references. After the forward date, distributions made by the fund will no longer have the same tax-advantaged nature.

For distributions declared after the forward date, the fund is proposing to initially set its targeted distributions at 60 cents per Class A unit and 60 U.S. cents per Class U unit, per annum, representing an approximate annual yield of 6.38 per cent and 6.34 per cent on the Class A units and Class U units, respectively, based on the net asset value per unit as at July 18, 2016. Following the forward date, distributions paid by the fund are no longer expected to be characterized primarily as capital gains or returns of capital, and, instead, all or a portion of the distributions will be characterized as ordinary income, although the fund may still distribute capital gains or returns of capital in the future. The maturity of the forward agreement will not affect the status of the fund as a mutual fund trust under the Income Tax Act.

Subject to regulatory approval, the manager, Scotia Managed Companies Administration Inc., proposes to amend the declaration of trust of the fund to remove the words tax-advantaged and references to the forward agreement from its investment objectives. The investment objectives of the fund after the proposed amendments will be to: (i) preserve and enhance the net asset value of the fund, and (ii) provide unitholders with quarterly distributions through investment in the Moneda fund.

On or about the forward date, the manager expects that the fund will amend its declaration of trust and other ancillary documents as required to reflect the maturity of the forward agreement, changes to the investment objectives of the fund and delete the references to the exposure to the Moneda fund through the forward agreement. There will be no change to the aggregate management fees received by the manager after the forward date.

We seek Safe Harbor.