Toronto, September 12, 2018 - First Asset Investment Management Inc. ("First Asset") announces that special meetings (each, a "Meeting" and collectively, the "Meetings") of the unitholders of each of First Asset Diversified Convertible Debenture Fund (TSX: DCD.UN), First Asset Canadian Convertibles Fund (TSX: ADC.UN) and First Asset North American Convertibles Fund (TSX: NCD.UN) (each, a "Fund" and collectively, the "Funds") will be held on Monday, October 22, 2018. If required, adjourned meetings will be held on Thursday, November 1, 2018. Unitholders of record of each Fund at the close of business on September 4, 2018 will be entitled to receive notice of and to vote at the Meeting in respect of the applicable Fund. The Notice of Availability of Meeting Materials and Management Information Circular of each Fund, which details the matters to be considered at each Meeting, will be available on www.sedar.com and www.firstasset.com on or about September 21, 2018.
At the Meetings, unitholders of each Fund will be asked to approve a merger (each, a "Merger" and collectively, the "Mergers") of the applicable Fund into First Asset Canadian Convertible Bond ETF (the "Continuing Fund"), pursuant to which all unitholders of that Fund will become holders of common units of the Continuing Fund (the "ETF Units") (TSX: CXF). The completion of any Merger is not conditional upon the approval or completion of any other Merger.
First Asset, the manager of the Funds, believes that the existing unitholders of the Funds will benefit from the Mergers for the following reasons: (i) as an exchange-traded fund, the Continuing Fund offers greater market liquidity and the ETF Units are expected to trade at a market price approximately equal to their net asset value, (ii) there are potential benefits from economies of scale through the continuous offering of the ETF Units, and (iii) the Continuing Fund pays a lower management fee and a smaller share of its operating costs than any Fund, and (iv) continued exposure to a similar investment mandate.
In connection with the Mergers, First Asset will also propose amendments to each Fund's declaration of trust in order to provide unitholders of each Fund with an opportunity to redeem their units at net asset value if they do not wish to participate in a Merger.
If a Merger is approved by the unitholders of a Fund, First Asset anticipates implementing it in December 2018, subject to obtaining any required third party or regulatory approvals in order to effect the Merger.
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. You will usually pay brokerage fees to your dealer if you purchase or sell units of a Fund 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 a Fund and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of a Fund. A Fund must prepare disclosure documents that contain key information about the Fund. You can find more detailed information about the Fund in these documents. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions “seeks”, “expects”, “believes”, “anticipates”, “estimates”, “will”, “target” and similar expressions. 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.
The Funds are managed by First Asset, a subsidiary of First Asset Capital Corp. TMFirst Asset and its logo are trademarks of First Asset Capital Corp., a wholly-owned subsidiary of CI Financial Corp. which is listed on the Toronto Stock Exchange under the symbol "CIX". ®CI FINANCIAL is a registered trademark of CI Investments Inc., used under license.
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