TORONTO, May 3, 2016 /CNW/ - Aston Hill Asset Management Inc. ("Aston Hill") confirmed today that the classes of Aston Hill Corporate Funds Inc. ("Corporate Class Funds") will remain open and will continue to operate in the same manner as prior to the budget proposal pending implementation of proposed changes to the tax free switching rules. The 2016 Federal Budget has proposed changes to the Income Tax Act (Canada) that will affect shareholders of all mutual fund corporations (the "Budget Proposal"), including the Corporate Class Funds. Notably, it was announced that corporate "rollover" rules, which allow an individual investor in one class of shares of a mutual fund corporation to switch to another class in the corporation without triggering a capital gain or loss, will change. The Budget Proposal states that after September 2016, switches between classes of a mutual fund corporation will be considered a disposition at fair market value for tax purposes, resulting in the recognition of capital gains or losses for investors. The Budget Proposal will not affect switches between Series A and Series F securities of the same class of Aston Hill's Corporate Class Funds.
"We want to give the shareholders of the Corporate Class Funds the full time-window under the legislation to position their investments in the most prudent and efficient way." said Aston Hill CEO James Werry. "We want to mitigate the impact of these proposed changes to the greatest extent possible. To that end we will continue to monitor the situation closely and work with industry groups and other stakeholders to better understand the options and opportunities afforded investors over the coming months. Through all that, it is business as usual."
In light of this, Aston Hill also clarifies that with respect to the upcoming merger of its mutual funds, previously announced on March 14, 2016, that shares of the Corporate Class Funds will continue to be distributed and shareholders will continue to be able to switch between classes. This includes Aston Hill High Income Class, being the continuing class following the merger, which will continue to be distributed under a prospectus.
Further updates will be provided as more details on the proposal emerge. Until then, there will be no change to the Aston Hill's plans to continue to offer corporate class funds. Investors should contact their financial advisor to learn how the budget proposal may impact their investment plans and their investment options regarding funds that are classes of a mutual fund corporation.
About Aston Hill
Aston Hill is a wholly-owned subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and segregated institutional funds. Aston Hill Financial is headquartered in Toronto.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
SOURCE Aston Hill Asset Management Inc.
For further information: James Werry, Chief Executive Officer, Aston Hill Asset Management Inc., (416) 583-2300, [email protected]; Derek Slemko, President, Aston Hill Asset Management Inc., (416) 583-2300, [email protected]