Connor, Clark & Lunn Capital Markets Inc. Comments on Federal Budget Announcement

TORONTO, March 27, 2013 /CNW/ - The recently announced federal budget proposed measures with respect to certain financial arrangements, commonly known as forward purchase and sale agreements, that would eliminate certain tax benefits for taxable unitholders of investment funds that utilize forward agreements.  The budget announcement states that these changes apply only to forward agreements entered into on or after March 21, 2013 ("Budget Day").

Several funds (the "Funds") managed by Connor, Clark & Lunn Capital Markets Inc. utilize forward agreements.  Each of these agreements was entered into prior to Budget Day.  Based on our current understanding of the budget announcement and our discussions with tax counsel, distributions paid by these funds are expected to continue to be treated as capital gains and return of capital for tax purposes until such time as their respective forward agreements reach their scheduled termination dates.  For funds with termination dates, their respective forward agreements are scheduled to terminate on the same date as the fund's termination date.  For funds without termination dates, their respective forward agreements are scheduled to terminate approximately five years from their inception date.  The budget announcement has not yet been enacted and there is no assurance that the proposals will not be changed from the proposals announced.

Funds	TSX Symbol	Fund Scheduled Termination Date	Forward Scheduled Termination Date
Australian Banc Capital Securities Trust	AUZ.UN	June 29, 2016	June 29, 2016
Build America Investment Grade Bond Fund	BAB.UN	February 27, 2015	February 27, 2015
Canadian 50 Advantaged Preferred Share Income Fund	CPF.UN	n/a	May 18, 2017
Canadian Banc Capital Securities Trust	CSB.UN	June 30, 2014	June 30, 2014
HBanc Capital Securities Trust	HSC.UN	May 30, 2015	May 30, 2015
ING Diversified Floating Rate Senior Loan Fund	IFL.UN	n/a	February 28, 2018
ING Floating Rate Senior Loan Fund	ISL.UN	n/a	June 30, 2016
North American Financials Capital Securities Trust	NAF.UN	November 30, 2014	November 30, 2014
U.S. Agency Mortgage-Backed REIT Advantaged Fund	USM.UN	n/a	October 23, 2017

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the Funds and anticipated distributions, events or results and may include statements regarding the future financial performance of the Funds. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

SOURCE: Australian Banc Capital Securities Trust

For more information on funds managed by Connor, Clark & Lunn Capital Markets Inc., please visit www.cclcapitalmarkets.com or contact:

Darren Cabral
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
[phone] or 1 [phone]
[email protected]