New Approach to ETF Special Distributions - First Asset ETFs Announce Revised Estimated 2014 Annual Special Distributions
TORONTO, December 17, 2014 - First Asset Investment Management Inc. ("First Asset") today announced special distributions in its First Asset exchange traded funds ("First Asset ETFs") which include a 25% cash portion intended to assist unitholders in satisfying any potential tax liability. The revised estimated annual special year-end distributions (the "Special Distributions") for the 2014 tax year for the First Asset ETFs are as noted in the table below.
"Advisors have told us that the tax liability associated with the annual special distributions in an ETF can require the selling of assets to generate cash. We are pleased to deliver the distributions in a manner that offers our investors a convenient and unique solution for this real-world investment need. Paying 25% of the special distribution in cash will cover most investors' potential tax liability." explains Rohit Mehta, Senior Vice President.
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, and immediately thereafter, 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 net asset value per unit of each First Asset ETF will decrease by an amount equal to the cash portion of the Special Distribution paid in respect of the First Asset ETF. Investors holding their units outside registered plans will have taxable amounts to report and an increase in the adjusted cost base of their investment attributable to the portion of the Special Distribution paid in units. In all cases, the Special Distributions will be paid on or before January 6, 2015, to unitholders of record on December 30, 2014. The ex-dividend date in each case is December 24, 2014.
|Fund Name||TSX Trading
|Estimated Special Distributions per Fund Unit as at December 15, 2014|
|In Cash||In Units|
|First Asset Morningstar Canada Dividend Target 30 Index ETF||DXM||$0.0383||$0.1148|
|First Asset Morningstar National Bank Québec Index ETF||QXM||$0.0845||$0.2535|
|First Asset Morningstar Canada Value Index ETF||FXM||$0.1145||$0.3435|
|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||$0.0840||$0.2520|
|First Asset MSCI Europe Low Risk Weighted ETF||RWE||$0.1678||$0.5033|
|First Asset MSCI World Low Risk Weighted ETF||RWW||$0.0965||$0.2895|
|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 estimated amounts are for the Special Distributions only and do not include the ongoing monthly or quarterly cash distribution amounts which were announced today in a separate press release. These estimates replace the previous estimates announced on December 5, 2014.
Possible Changes to Special Distribution per Unit Amounts
The per unit amounts shown above in respect of units of any of the First Asset ETFs could change if there is an increase or decrease in the number of outstanding units of such First Asset ETF as a result of subscriptions or redemptions prior to the December 30 record date. First Asset will issue a final press release on or about December 30, 2014 which will provide the final amounts.
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.
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.