First Asset Canadian Dividend Opportunity Fund II

TSX : DVF.UN


First Asset Canadian Dividend Opportunity Fund II
First Asset



First Asset

January 13, 2014 17:30 ET

First Asset Canadian Dividend Opportunity Fund II Announces Conversion Details

TORONTO, ONTARIO--(Marketwired - Jan. 13, 2014) -

NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Further to its press release on December 23, 2013, First Asset Canadian Dividend Opportunity Fund II (TSX:DVF.UN) (the "Fund") wishes to provide the following details concerning its scheduled conversion into a mutual fund.

Subject to the receipt of all required regulatory and third party approvals (collectively, the "Approvals"), the Fund will implement the conversion by way of a tax-deferred merger with First Asset Canadian Dividend Opportunity Fund (the "Mutual Fund").

The Mutual Fund is an existing mutual fund managed by First Asset Investment Management Inc. (the "Manager") which also manages the Fund. The Mutual Fund's investment objectives are to provide unitholders with (i) monthly distributions; and (ii) the opportunity for capital appreciation, by investing in an actively managed portfolio comprised primarily of high-quality dividend paying Canadian equity securities of Canadian utility issuers, pipeline issuers and telecommunications issuers and select higher yielding equity securities. Unitholders may obtain more information about the Mutual Fund at www.firstasset.com.

Subject to the Approvals, the Manager anticipates implementing the merger on or about February 21, 2014. In order to facilitate the merger, units of the Fund will be delisted from the Toronto Stock Exchange prior to the Merger. Unitholders of the Fund will receive Class X units of the Mutual Fund in connection with the merger on a one-to-one basis, and the opening net asset value per Class X unit after the merger will be the same as the closing net asset value per unit of the Fund immediately prior to the Merger. Unitholders of the Fund are not required to take any action in order to be recognized as unitholders of the Mutual Fund.

Class X units of the Mutual Fund issued in connection with the merger will be redeemable daily. As set out in the Fund's original offering documents, the Class X units that are redeemed will receive an amount equal to the net asset value per Class X unit, less a redemption fee payable to the Manager from the amount otherwise receivable by the redeeming holder determined according to the following schedule:

  • Until February 28, 2015, a redemption fee of $0.20 per Class X unit;
  • Until February 29, 2016, a redemption fee of $0.15 per Class X unit;
  • Until February 28, 2017, a redemption fee of $0.10 per Class X unit; and
  • Effective March 1, 2017, no redemption fee. The Manager anticipates merging the remaining Class X Units outstanding at this time with the Mutual Fund's existing Class A Units (Initial Sales Charge).

Once all Approvals have been received, the Fund will confirm the specific details of the Merger, including timing. The Mutual Fund will file a simplified prospectus and annual information form with the Canadian securities regulators in order to qualify the Class X units for distribution in connection with the proposed merger.

If you have any questions concerning this matter, please contact your financial advisor or call us at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.

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