In response to amendments to the Income Tax Act (Canada) introduced in the 2013 Federal Budget, Fidelity Investments Canada ULC has made mergers and changes to the investment objectives of its capital yield funds.
The amendments to the Tax Act will eliminate the tax-related benefits associated with the character conversion transactions, currently used by capital yield funds, from 31 December 2014.
Accordingly, Fidelity Investments cannot continue to manage these funds in the same tax-efficient way from that date. Fidelity Investments has determined that it will be merging some funds and changing the investment objectives and names of the remaining funds.
The company has received the appropriate regulatory permissions to conduct the mergers and make these investment objective changes without the approval of security-holders, subject to other approvals and conditions.
The capital yield funds were generally closed to new purchases on 2 April 2013.
Full details of the mergers, investment objectives and name changes will be outlined in a separate notice to security-holders that will be circulated at least 60 days before the effective date of the mergers. No action is required by security-holders.