CIBC Asset Management Assesses Changes Related to Forward Contracts
TORONTO, April 9, 2013 /CNW/ - CIBC (CM: TSX) (CM: NYSE) The 2013 federal
budget included proposed changes to eliminate character conversion
transactions using forward contracts. Certain mutual funds use these forwards
to convert ordinary income to capital gains for tax purposes. The budget
provided a transition period of at least 180 days.
The proposed changes will impact capital yield funds across the financial
services industry, including the Renaissance Corporate Bond Capital Yield Fund
(the Fund). Existing assets in the Fund will continue to benefit from the
forward contracts during the transition period. CIBC Asset Management
continues to work with legal counsel to determine the transitional approach
for the Fund.
It is our expectation that once the government's proposed changes are
implemented, the Fund's 2013 taxation year distributions will be comprised
primarily of capital gains, with a smaller portion as ordinary income.
After the transition period, it is our intention to continue to offer the Fund
with the same underlying investment focus. The Renaissance Corporate Bond
Capital Yield Fund has been one of the strongest fixed income funds in Canada,
independent of the tax structure.
CIBC Asset Management will continue to examine the potential implications of
the government's budget proposals and act in the best interest of unitholders.
Commissions, trailing commissions, management fees and expenses all may be
associated with mutual fund investments. Please read the Renaissance
Investments family of funds simplified prospectus before investing. Mutual
funds are not guaranteed; their values change frequently and past performance
may not be repeated.
CIBC Asset Management Inc., the asset management division of CIBC, is
responsible for the CIBC and Renaissance Investments families of mutual funds,
Imperial Pools, Frontiers Pools and the CIBC family of managed portfolio
solutions - Axiom Portfolios, CIBC Managed Portfolio Services and CIBC
Personal Portfolio Services. CIBC Asset Management manages more than $60
billion in assets.
Media contact: Kevin Dove, Head, External Communications and Media Relations,
at 416-980-8835 or e-mail:firstname.lastname@example.org.
Product inquiries: Renaissance Investments Client Services at 1-888-888-FUND
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-0- Apr/09/2013 18:45 GMT
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