TORONTO, September 5, 2018 - First Asset Investment Management Inc. ("First Asset") announces that First Asset MSCI USA Low Risk Weighted ETF (the "Fund") will pay a special distribution on its hedged units (TSX: RWU) and unhedged units (TSX: RWU.B) in the amounts estimated in the table below (the "Special Distribution"). The Special Distribution will be paid in cash and will be paid on or about September 28, 2018 to unitholders of record on September 14, 2018.
|Fund Name||TSX Trading Symbol||Estimated Special Distribution per Fund Unit as at August 31, 2018|
|First Asset MSCI USA Low Risk Weighted ETF||RWU (Hedged)||$0.0760|
The Special Distribution arises as a result of the upcoming merger (the "Merger") of First Asset Morningstar U.S. Consumer Defensive Index Fund (TSX: UCD.UN) with the Fund currently scheduled for September 14, 2018. The Fund is required to distribute any net income and capital gains that it has earned for the year to date period immediately prior to the Merger. The Special Distribution will generally consist of capital gains and/or any excess net income at year end. Investors holding their units outside registered plans will have taxable amounts to report and an increase in the adjusted cost base of their investment.
The Special Distribution will be the only distribution made by the Fund for the quarter-ended September 30, 2018. The Fund will resume regular quarterly cash distributions in December 2018.
Please note that these are estimated amount is calculated as of August 31, 2018 and includes certain forward-looking information which may cause the estimated Special Distribution to change before the record date of September 14, 2018. First Asset is providing this estimated Special Distribution value for information purposes only. These estimates are not intended to be, nor should they be construed to be, legal or tax advice to any particular person.
First Asset expects to announce the final, confirmed Special Distribution amount (subject to any further revisions to per unit amounts resulting from subscription and redemption activity prior to the record date) on or about September 14, 2018. The actual taxable amounts of the Special Distribution, including the tax characteristics of the distributions, will be reported to brokers (through CDS Clearing and Depository Services Inc. or "CDS") and will be posted on the First Asset website in early 2019.
This press release contains forward-looking statements with respect to the estimated Special Distribution for the Fund. By their nature, these forward-looking statements involve certain risks and uncertainties that could cause the actual distributions to differ materially from those contemplated by the forward-looking statements. Material factors that could cause the actual Special Distribution to differ from the estimated Special Distribution between now and the Merger date include, without limitation: the actual amount of dividends received by the Fund; the actual amount of capital gains generated from sales of securities; and subscription and redemption activity in the Fund.
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For further information, please call 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 ("ETFs"). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. The forward-looking statements are not historical facts but reflect the current expectations of First Asset regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. First Asset believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, First Asset can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. First Asset undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.
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