First Asset Investment Management, the manager and trustee of First Asset Global Financial Sector ETF (FSF), intends to consolidate the units of the exchange traded fund.
After the close of trading on the Toronto Stock Exchange (TSX) on 15 July 2016, the units of the First Asset ETF will be consolidated on the basis of one post-consolidation unit for every two pre-consolidation units (the consolidation ratio), and such units will begin trading on a post-consolidated basis on 18 July 2016.
Following the consolidation, the net asset value per unit will be increased by the same ratio as the consolidation ratio, such that the consolidation will have no impact on the value of an investor's aggregate holding of units. Similarly, an investor's cost per unit is also increased by the same ratio as the consolidation ratio, however investors will hold fewer units, so the aggregate cost of an investor's units will remain the same.
No fractional units will be issued in the consolidation. Where the consolidation would result in a fractional unit, the number of post-consolidation units will be rounded down to the nearest whole post-consolidation unit in the case of a fractional interest that is less than 0.5, or rounded up to the nearest whole post-consolidation unit, in the case of a fractional interest that is 0.5 or greater.
Unitholders are not required to take any action in connection with the consolidation.
