NEI Investments to cap three corporate class funds

Sentry reopens corporate class fixed-income funds Invesco simplifies product offering IE Staff In response to the 2013 federal budget’s proposed elimination of tax benefits associated with character conversion transactions, NEI Investments Monday announced the temporary capping of three funds, effective April 12. The three funds are: NEI Income Corporate Class; NEI Northwest Tactical Yield Corporate Class; and NEI Northwest Specialty Global High Yield Bond Corporate Class. Facebook LinkedIn Twitter Fidelity completes capital yield fund mergers Share this article and your comments with peers on social media Keywords Character conversionCompanies NEI Investments NEI says the temporary cap allows it 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. The 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. NEI Investments is owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group. Related news

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