TORONTO, May 15, 2015 /CNW/ - First Asset Investment Management Inc. (the "Manager"), the manager of First Asset Diversified Convertible Debenture Fund (the "Fund") (TSX: DCD.UN), announces that the Fund will not renew its forward agreements (collectively, the "Forward Agreement") when they expire on or about July 15, 2015 (the "Termination Date"). After the Termination Date, the Fund will continue to pursue the same investment objectives through direct exposure to a portfolio consisting primarily of convertible debentures, instead of indirect exposure through the use of the Forward Agreement.
Unitholders do not have to take any steps in connection with the matters described above.
Following the expiry of the Forward Agreement, a greater portion of the distributions made to Unitholders may be taxable as ordinary income. However, it is anticipated that the Fund, and therefore Unitholders, will save approximately 0.75% of net asset value per annum by not employing the Forward Agreement.
The Fund's Declaration of Trust will be amended in accordance with its terms in order to reflect the termination of the Forward Agreement and other necessary amendments associated with the change. Such amendments will not affect the Fund's investment objectives which remain the same.
The Fund does not expect that the termination of the Forward Agreement will result in any net taxable capital gain for Unitholders.
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For further information, please contact Investor Relations, First Asset Investment Management Inc. at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.
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