TORONTO, December 30, 2014 - First Asset Investment Management Inc. ("First Asset") today announced the final annual special distributions (the "Special Distributions") for its First Asset exchange traded funds ("First Asset ETFs").
New this year, and unique in the ETF industry, is a 25% cash portion intended to assist unitholders in satisfying potential tax liability associated with the Special Distribution. 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. Traditionally, special distributions are paid by Canadian ETFs entirely through the distribution of units, which can create tax liabilities for investors in non-registered accounts. In response to concerns voiced by the advisor community on behalf of clients, we introduced this change to the composition of our Special Distributions in order to address the immediate cash needs in respect of these tax liabilities.
With respect to the portion of each Special Distribution paid by the issuance of units, as is standard in the industry, immediately after the issuance of the units, 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 Special Distributions for the 2014 tax year for the First Asset ETFs are set out in the table below. In all cases, the Special Distributions will be paid on or before January 6, 2015, to unitholders of record on December 30, 2014.
|Fund Name||TSX Trading Symbol||Confirmed Special Distributions per Fund Unit|
|In Cash||In Units|
|First Asset Morningstar Canada Dividend Target 30 Index ETF||DXM||$0.0408||$0.1223|
|First Asset Morningstar National Bank Québec Index ETF||QXM||$0.0845||$0.2535|
|First Asset Morningstar Canada Value Index ETF||FXM||$0.1160||$0.3480|
|First Asset Morningstar Canada Momentum Index ETF||WXM||$0.0293||$0.0878|
|First Asset Morningstar US Value Index ETF||XXM||$0.0000||$0.0000|
|First Asset Morningstar International Value Index ETF||VXM||$0.0235||$0.0705|
|First Asset Morningstar International Momentum Index ETF||ZXM||$0.0265||$0.0795|
|First Asset MSCI Canada Low Risk Weighted ETF||RWC||$0.0528||$0.1583|
|First Asset MSCI USA Low Risk Weighted ETF||RWU||$0.0850||$0.2550|
|First Asset MSCI Europe Low Risk Weighted ETF||RWE||$0.1678||$0.5033|
|First Asset MSCI World Low Risk Weighted ETF||RWW||$0.0950||$0.2850|
|First Asset Can-60 Covered Call ETF||LXF||$0.0000|
|First Asset Can-Energy Covered Call ETF||OXF||$0.0000|
|First Asset Can-Financials Covered Call ETF||FXF||$0.0000|
|First Asset Can-Materials Covered Call ETF||MXF||$0.0000|
|First Asset Canadian Convertible Bond ETF||CXF||$0.0000|
|First Asset Tech Giants Covered Call ETF||TXF||$0.0000|
|First Asset Morningstar US Dividend Target 50 Index ETF||UXM||$0.0000|
|First Asset Morningstar US Momentum Index ETF||YXM||$0.0000|
|First Asset Hamilton Capital European Bank ETF||FHB||$0.0000|
|First Asset U.S. & Canada Lifeco Income ETF||FLI||$0.0000|
|First Asset Active Canadian Dividend ETF||FDV||$0.0000|
|First Asset Active Canadian REIT ETF||FRF||$0.0000|
|First Asset Government Bond Barbell Index ETF||GXF||$0.0000|
|First Asset Corporate Bond Barbell Index ETF||KXF||$0.0000|
|First Asset All Canada Bond Barbell Index ETF||AXF||$0.0000|
|First Asset Provincial Bond Index ETF||PXF||$0.0000|
|First Asset 1-5 Year Laddered Government Strip Bond Index ETF||BXF||$0.0000|
|First Asset Morningstar Emerging Markets Composite Bond Index ETF||EXM||$0.0000|
These final amounts are for the Special Distributions only and do not include the ongoing monthly or quarterly cash distribution amounts which were announced on December 17, 2014, in a separate press release. These final Special Distribution amounts replace the previous estimates announced on December 5, 2014 and December 17, 2014, respectively.
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. or "CDS") in early 2015.
Supporting Investors' Needs
Stay in the market, minimize costs, and take advantage of a smart, simple and efficient feature designed to support investors' needs. First Asset Distribution Reinvestment Plan (DRIP) will automatically reinvest First Asset ETF cash distributions into the First Asset ETF making the distribution. Contact your advisor for more information. All of the cash distributions indicated in the table above will be paid in cash unless the unitholder has enrolled in the applicable DRIP of the respective ETF. A copy of the Distribution Reinvestment Plan is available at www.firstasset.com.
First Asset - Smart SolutionsTM
First Asset is an independent investment firm focused on providing smart, low cost solutions that address the real-world investment needs of Canadians - capital appreciation, income generation and risk mitigation. 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.
For further information, please contact Investor Relations, First Asset at 416-642-1289 or 1?877?642?1289 or visit www.firstasset.com.
This communication is intended for informational purposes only. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated.
Not for dissemination to U.S. newswire services or for dissemination to the United States of America.