/NOT FOR DISSEMINATION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA./
TORONTO, Sept. 12, 2018 /CNW/ - 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.
First Asset – Smart SolutionsTM
First
Asset, a CI Financial Company, is a Canadian investment firm
delivering a comprehensive suite of smart ETF solutions. 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.
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.
SOURCE First Asset