TORONTO, April 8, 2013 /CNW/ - Further to the Federal Government's announcement on March 21, 2013 regarding the proposed elimination of tax benefits associated with character conversion transactions, NEI Investments today announced the temporary closing of three funds, effective April 12, 2013:
- NEI Income Corporate Class
- NEI Northwest Tactical Yield Corporate Class
- NEI Northwest Specialty Global High Yield Bond Corporate Class
The implementation of this temporary cap allows us to protect the interests of existing investors and recognizes that discussions between the industry and the government are still ongoing and may result in additional considerations for fund companies in the coming weeks.
These three NEI funds currently use forward contracts as part of their investment strategies in order to convert ordinary interest income into tax-efficient capital gains. The current budget proposal permits funds currently utilizing such arrangements to continue taking advantage of them for a period of approximately 180 days following the next maturity. As this timing coincides with the September year-end of NEI's Corporate Class, these funds will retain the tax benefits of the forwards for the entire 2013 tax year.
ABOUT NEI INVESTMENTS
NEI Investments is a national investment firm with approximately $5 billion in assets under management. In simple terms, NEI Investments' mission is to provide high quality, unique investment solutions. The Northwest Funds and Ethical Funds product suites provide investors with a full range of fund management styles as well as conventional and sustainable investment choices.
NEI Investments is owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group, united in their focus to strengthen and serve the cooperative financial movement across Canada. This backing of experience and vast resources provides economies of scale and allows NEI Investments to actively support business growth in these networks as well as independent advisor channels.
NEI Investments has offices in Toronto, Vancouver and Montreal.
SOURCE: NEI Investments
Media Contact:
Laurie Smith
Maverick Public Relations
E-mail: [email protected]
Phone: 416 640-5525 ext 244
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