The First Trust Canadian Capital Strength Portfolio is to convert from a mutual fund into an exchange-traded fund (ETF).
FT Portfolios, the manager of the fund, believes the conversion should provide investors with several benefits, including lower management fees.
The units of the fund are expected to trade on a stock exchange and will have secondary market liquidity. The manager expects to be able to increase the asset base of the fund as a result of the increased marketability and the trading liquidity of the fund as an ETF.
The fund has called and will hold a special meeting of its unitholders on 20 September to consider and vote upon the proposal.
A management information circular is being prepared and will be mailed to the unitholders of the fund. It will also be available on at www.sedar.com and www.firsttrust.ca.
Implementation of the conversion is subject to all required regulatory approvals. If approved, the conversion is expected to be implemented in early November.
