TORONTO, April 9, 2013 /CNW/ - CIBC (CM: TSX) (CM: NYSE) The 2013 federal budget included proposed changes to eliminate character
conversion transactions using forward contracts. Certain mutual funds
use these forwards to convert ordinary income to capital gains for tax
purposes. The budget provided a transition period of at least 180 days.
The proposed changes will impact capital yield funds across the
financial services industry, including the Renaissance Corporate Bond
Capital Yield Fund (the Fund). Existing assets in the Fund will
continue to benefit from the forward contracts during the transition
period. CIBC Asset Management continues to work with legal counsel to
determine the transitional approach for the Fund.
It is our expectation that once the government's proposed changes are
implemented, the Fund's 2013 taxation year distributions will be
comprised primarily of capital gains, with a smaller portion as
After the transition period, it is our intention to continue to offer
the Fund with the same underlying investment focus. The Renaissance
Corporate Bond Capital Yield Fund has been one of the strongest fixed
income funds in Canada, independent of the tax structure.
CIBC Asset Management will continue to examine the potential
implications of the government's budget proposals and act in the best
interest of unitholders.
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the Renaissance
Investments family of funds simplified prospectus before investing.
Mutual funds are not guaranteed; their values change frequently and
past performance may not be repeated.
CIBC Asset Management Inc., the asset management division of CIBC, is
responsible for the CIBC and Renaissance Investments families of mutual
funds, Imperial Pools, Frontiers Pools and the CIBC family of managed
portfolio solutions - Axiom Portfolios, CIBC Managed Portfolio Services
and CIBC Personal Portfolio Services. CIBC Asset Management manages
more than $60 billion in assets.
For further information:
Media contact: Kevin Dove, Head, External Communications and Media Relations, at 416-980-8835 or e-mail: firstname.lastname@example.org.
Product inquiries: Renaissance Investments Client Services at 1-888-888-FUND (3863).