MONTREAL, March 27, 2013 /CNW Telbec/ - Desjardins Investments Inc., the
Manager of Desjardins Funds, has received the recent Federal Budget.
Some provisions of the budget could have an impact on the Desjardins
Capital Yield Bond Fund's trading. These provisions concern the
character conversion transactions carried out by the Fund.
Under the new rules provided in the budget, the gain realized on the
close-out of certain derivative forward agreements would be treated as
ordinary income rather than capital gain. This measure would apply to
forward agreements entered into after March 21, 2013.
Desjardins Investments is reviewing the proposed changes in order to
determine the potential impact they could have on the Fund's trading.
The investment strategy of the Fund uses forward agreements to create a
tax-efficient distribution for its unitholders. As details are limited
at this point, the Manager will await further guidance from the Federal
Government on the implementation of the new changes and will make
further announcements as necessary.
The Fund is included in the Chorus II Corporate Class Portfolios, held
in non-registered accounts, which are the largest investors in the
Fund. Based on additional information expected from the Federal
Government, we will undertake a thorough analysis and make the
necessary changes to the portfolios in order to ensure a tax-efficient
solution for our unitholders.
This material change will be reflected in the Desjardins Funds
Simplified Prospectus filed with the Canadian Securities
About Desjardins Group
Desjardins Group is the leading cooperative financial group in Canada with assets of
nearly $200 billion. Drawing on the strength of its caisse network in
Québec and Ontario and its subsidiaries across Canada, it offers a full
range of financial products and services to its members and clients.
Desjardins specializes in Wealth Management and Life and Health
Insurance, in Property and Casualty Insurance, in Personal Services, in
Business and Institutional Services. Best Corporate Citizen in Canada for 2012 and among Canada's Top 100 Employers, Desjardins is supported by the skills of its 44,942 employees and the
commitment of 5,268 elected officers. Desjardins members and the
general public are invited to visit Desjardins Group's education and
cooperation program website at www.desjardins.com/co-opme.
SOURCE: DESJARDINS GROUP
For further information:
(for journalists only):
Media Relations, Desjardins Group
514-281-7229 or 1-866-866-7000, ext. 7229