TORONTO, April 12, 2013 /CNW/ - Man Investments Canada Corp. ("Man Canada") has announced that, effective as of the close of business on April 12, 2013, it will no longer accept new or additional investments into the Man Canada DP Investment Fund and the GLG EM Income Fund (the "Funds"). This decision follows the Federal Government's budget announcement on March 21, 2013, which included proposed measures that will treat the profit from certain forward agreements as fully taxable ordinary income. Investment funds, including the Funds, have used such forward agreements to obtain exposure to an underlying reference portfolio. The budget describes this use of forward agreements as "character conversion transactions".
After consulting with external counsel, Man Canada is of the understanding that the Department of Finance has expressed concern if investment funds increase the size of existing character conversion transactions subsequent to the release of the budget. Based upon the text published in the budget, Man Canada believes that there will be no change in the tax treatment for existing unitholders until the expiration of existing forward agreements, for Man Canada DP Investment Fund in January, 2016 and for GLG EM Income Fund in June, 2015.
Man Canada continues to assess the budget proposal and its potential impact. At this time, it is believed to be in the best interest of existing investors in the Funds to suspend further purchases until there is greater guidance from the Federal Government regarding this proposal. Once all of the details are known, Man Canada will determine the best long-term course of action for these Funds.
Investors are encouraged to speak with their financial advisor and/or tax advisor about their options regarding the Funds.
Notes to editors:
Man is a world-leading alternative investment management business. It has expertise in a wide range of liquid investment styles including managed futures, equity, credit and convertibles, emerging markets, global macro and multi-manager, combined with powerful product structuring, distribution and client service capabilities. As at December 31, 2012, Man managed US$57.0 billion.
The original business was founded in 1783. Today, Man is listed on the London Stock Exchange and is a member of the FTSE 250 Index.
Man is a signatory to the United Nations Principles for Responsible Investment (PRI) and a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsoring the Man Booker literary prizes and the Man Asian Literary Prize. Further information can be found at www.man.com.
Notice to readers:
Nothing in this announcement should be construed as or is intended to be a solicitation for or an offer to provide investment services.
Not for release, publication or distribution, in whole or in part, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.
SOURCE: Man Investments Canada Corp.
For further information:
CEO, Man Investments Canada Corp.
Please contact Man Canada toll-free at 1 877 860-1080 or 416 775-3600.