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Aston Hill updates status of Corporate Class Funds under 2016 Federal Budget Proposals and in connection with the upcoming mutual fund mergers
Aston Hill updates status of Corporate Class Funds under 2016 Federal Budget Proposals and...
About this update from Flow Capital Corp.
[{"type":"text","content":"\n\n\n\nAston Hill updates status of Corporate Class Funds under 2016 Federal Budget Proposals and in connection with the upcoming mutual fund mergers\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nAston Hill updates status of Corporate Class Funds under 2016 Federal Budget Proposals and in connection with the upcoming mutual fund mergers\nCanada NewsWire\nTORONTO, May 3, 2016\n\n\n\nTORONTO, May 3, 2016 /CNW/ - Aston Hill Asset Management Inc. (\"Aston Hill\") confirmed today that the classes of Aston Hill Corporate Funds Inc. (\"Corporate Class Funds\") will remain open and will continue to operate in the same manner as prior to the budget proposal pending implementation of proposed changes to the tax free switching rules. The 2016 Federal Budget has proposed changes to the Income Tax Act (Canada) that will affect shareholders of all mutual fund corporations (the \"Budget Proposal\"), including the Corporate Class Funds. Notably, it was announced that corporate \"rollover\" rules, which allow an individual investor in one class of shares of a mutual fund corporation to switch to another class in the corporation without triggering a capital gain or loss, will change. The Budget Proposal states that after September 2016, switches between classes of a mutual fund corporation will be considered a disposition at fair market value for tax purposes, resulting in the recognition of capital gains or losses for investors. The Budget Proposal will not affect switches between Series A and Series F securities of the same class of Aston Hill's Corporate Class Funds.\n\n\"We want to give the shareholders of the Corporate Class Funds the full time-window under the legislation to position their investments in the most prudent and efficient way.\" said Aston Hill CEO James Werry. \"We want to mitigate the impact of these proposed changes to the greatest extent possible. To that end we will continue to monitor the situation closely and work with industry groups and other stakeholders to better understand the options and opportunities afforded investors over the coming months. Throu...