/NOT FOR DISSEMINATION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA./
TORONTO, Aug. 31, 2015 /CNW/ - Can-60 Income Corp. (the
"Fund") (TSX: CSY.UN) announces that a special meeting of
shareholders will be held on Wednesday,
September 30, 2015. If required, an adjourned meeting
will be held on Thursday, October 1,
2015.
At the meeting, shareholders will be asked to eliminate the
Fund's fixed termination date and to approve the conversion of the
Fund from a closed-end fund to an exchange traded fund (an
"ETF"), including changes to the investment objectives,
strategies and restrictions applicable to the ETF.
First Asset Investment Management Inc., the manager of the Fund,
believes that the Fund remains an attractive investment opportunity
for its shareholders and there is no reason to terminate the Fund
on October 31, 2015. The
elimination of the Fund's termination date will enable shareholders
to potentially defer any capital gains tax liability that otherwise
would have been realized on the termination of the Fund, and also
preserves valuable tax attributes of the Fund in the form of
capital losses and non-capital loss carry-forwards. If
this resolution is approved, shareholders who do not wish to remain
as investors in the Fund will be able to redeem their shares at net
asset value through a special redemption right on or about
October 31, 2015.
If the resolution eliminating the termination date is approved,
shareholders will also be asked to approve the conversion of the
Fund from a closed-end fund to an ETF, including changes to the
investment objectives, strategies and restrictions. The
manager believes that the conversion will benefit existing
shareholders through greater market liquidity and trading
efficiency, potential benefits from economies of scale through the
continuous offering of shares, and a reduction in the management
fee to 0.75% from 1.15% of NAV per share. In addition,
to the extent that in the future additional ETF classes of the Fund
are offered, including classes offering new mandates, shareholders
of the exchange-traded fund will have the ability to switch between
such classes on a tax-deferred basis.
In connection with the conversion, shareholders will also be
asked to approve changes to the investment objectives, strategies
and restrictions of the Fund. While keeping the Fund's focus
on larger capitalization issuers and lower overall volatility of
returns, the proposed changes to the investment objectives and
strategies offer, in the Manager's opinion, a better approach to
achieve superior risk adjusted returns.
Following the conversion, the fundamental investment objective
of the ETF will be to seek to provide shareholders with: (i) long
term capital appreciation with an attractive risk-adjusted rate of
return; and (ii) consistent dividend income; through investing the
ETF's portfolio to gain exposure to equity securities of primarily
large capitalization Canadian issuers. To achieve its
investment objective, the ETF will use a multi-factor portfolio
optimization strategy to allocate its assets to gain exposure to
equity securities of primarily large capitalization Canadian
issuers in order to try to create a well-diversified portfolio with
strong fundamentals, attractive levels of dividend income and a
historical risk adjusted rate of return greater than a broad
capitalization weighted Canadian equity fund. The ETF
may invest directly in equity securities and/or indirectly in such
securities through other ETFs, including those managed by the
manager.
The details of the meeting and the manager's proposals are
further described in a management information circular to be mailed
to shareholders on or about September 8,
2015.
First Asset - Smart SolutionsTM
First Asset is an independent investment firm, focused on
providing smart, low cost solutions that address the real-world
investment needs of Canadians - capital appreciation, income
generation and risk mitigation. 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.
This offering is made only by prospectus. The prospectus
contains important detailed information about the ETF and its
units. A copy of the prospectus may be obtained from your
investment advisor, First Asset or at www.sedar.com. Investors
should read the prospectus before making an investment decision.
Commissions, trailing fees, management fees and expenses all may be
associated with investments in the ETF. The ETF is managed by First
Asset Investment Management Inc.
SOURCE First Asset