CALGARY, ALBERTA--(Marketwired - April 11, 2016) - The 2016 Federal Budget has proposed changes to Canadian tax law that will impact the tax treatment of investors holding shares of mutual fund corporations, including Norrep Opportunities Corp. and Norrep Core Portfolios Ltd. The Federal Budget proposes to amend the Income Tax Act (Canada) so that an exchange of shares of a mutual fund corporation that results in the investor switching between mutual funds will be considered to be a disposition at fair market value for tax purposes.
Currently, shareholders of mutual funds that are classes of a mutual fund corporation may switch their shares of one mutual fund for shares of another mutual fund that is a class of the same corporation without triggering a taxable disposition. However, if these proposed changes are implemented, switches between mutual funds that are classes of Norrep Opportunities Corp. or Norrep Core Portfolios Ltd. that occur on or after October 1, 2016 will be taxable transactions for shareholders. The proposed changes are not expected to impact switches that occur between different series of the same mutual fund.
Investors should consult with their financial advisor on how this proposal may impact their investment plans. Norrep Capital Management Ltd., the manager of Norrep Investments, continues to assess and evaluate this proposal and its potential impact on the Funds.
This proposal affects a number of mutual fund corporations across the industry, including the following Norrep Investment funds (the "Funds"):
| Norrep Opportunities Corp. | Norrep Core Portfolios Ltd. |
| Norrep II Class | Norrep Core Global Pool |
| Norrep Canadian Equity Class | Norrep Core Canadian Pool |
| Norrep Income Growth Class | Norrep Premium Growth Class |
| Norrep US Dividend Plus Class | |
| Norrep Global Class | |
| Norrep Energy Class | |
| Norrep Entrepreneurs Class | |
| Norrep Global Income Growth Class | |
| Norrep High Yield Class | |
| Norrep Tactical Opportunities Class |
Until this change is implemented, the Funds will continue to operate in the same manner as prior to the budget announcement.
Norrep Capital Management Ltd. is an independent Canadian investment firm with offices in Calgary and Toronto. Please visit www.norrep.com for more details about Norrep and its investment products. For the complete disclosure record of Norrep Investments, please visit www.sedar.com.
Contact Information:
Leila Li
Dealer & Client Services
1-877-431-1407
info@norrep.com
www.norrep.com