New Approach to ETF Special Distributions - First Asset ETFs Announce Revised Estimated 2014 Annual Special Distributions

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TORONTO, Dec. 17, 2014 /CNW/ - First Asset Investment Management Inc. ("First Asset") today announced special distributions in its First Asset exchange traded funds ("First Asset ETFs") which include a 25% cash portion intended to assist unitholders in satisfying any potential tax liability.  The revised estimated annual special year-end distributions (the "Special Distributions") for the 2014 tax year for the First Asset ETFs are as noted in the table below.

"Advisors have told us that the tax liability associated with the annual special distributions in an ETF can require the selling of assets to generate cash.  We are pleased to deliver the distributions in a manner that offers our investors a convenient and unique solution for this real-world investment need.  Paying 25% of the special distribution in cash will cover most investors' potential tax liability." explains Rohit Mehta, Senior Vice President.

One-quarter of each Special Distribution will be paid in cash and the balance of each Special Distribution will be paid by the issuance of units of the applicable First Asset ETF, and immediately thereafter, the issued and outstanding capital of the First Asset ETF will be consolidated such that the number of issued and outstanding units of the First Asset ETF does not change.

The net asset value per unit of each First Asset ETF will decrease by an amount equal to the cash portion of the Special Distribution paid in respect of the First Asset ETF.  Investors holding their units outside registered plans will have taxable amounts to report and an increase in the adjusted cost base of their investment attributable to the portion of the Special Distribution paid in units. In all cases, the Special Distributions will be paid on or before January 6, 2015, to unitholders of record on December 30, 2014.  The ex-dividend date in each case is December 24, 2014.

Fund Name	TSX Trading Symbol	Estimated Special Distributions per Fund Unit as at December 15, 2014
		In Cash	In Units
First Asset Morningstar Canada Dividend Target 30 Index ETF	DXM	$0.0383	$0.1148
	DXM.A	$0.0428	$0.1283
First Asset Morningstar National Bank Québec Index ETF	QXM	$0.0845	$0.2535
	QXM.A	$0.0820	$0.2460
First Asset Morningstar Canada Value Index ETF	FXM	$0.1145	$0.3435
	FXM.A	$0.0993	$0.2978
First Asset Morningstar Canada Momentum Index ETF	WXM	$0.0293	$0.0878
	WXM.A	$0.0043	$0.0128
First Asset Morningstar US Value Index ETF	XXM	$0.0000	$0.0000
	XXM.A	$0.0000	$0.0000
	XXM.B	$0.0638	$0.1913
	XXM.D	$0.0608	$0.1823
First Asset Morningstar International Value Index ETF	VXM	$0.0235	$0.0705
	VXM.A	$0.0433	$0.1298
	VXM.B	$0.0000	$0.0000
	VXM.D	$0.0000	$0.0000
First Asset Morningstar International Momentum Index ETF	ZXM	$0.0265	$0.0795
	ZXM.A	$0.0610	$0.1830
	ZXM.B	$0.0000	$0.0000
	ZXM.D	$0.0000	$0.0000
First Asset MSCI Canada Low Risk Weighted ETF	RWC	$0.0528	$0.1583
	RWC.A	$0.0535	$0.1605
First Asset MSCI USA Low Risk Weighted ETF	RWU	$0.0840	$0.2520
	RWU.A	$0.0648	$0.1943
	RWU.B	$0.0878	$0.2633
	RWU.D	$0.0940	$0.2820
First Asset MSCI Europe Low Risk Weighted ETF	RWE	$0.1678	$0.5033
	RWE.A	$0.2463	$0.7388
	RWE.B	$0.0218	$0.0653
	RWE.D	$0.0543	$0.1628
First Asset MSCI World Low Risk Weighted ETF	RWW	$0.0965	$0.2895
	RWW.A	$0.1688	$0.5063
	RWW.B	$0.1223	$0.3668
	RWW.D	$0.1240	$0.3720
First Asset Can-60 Covered Call ETF	LXF	$0.0000
	LXF.A	$0.0000
First Asset Can-Energy Covered Call ETF	OXF	$0.0000
	OXF.A	$0.0000
First Asset Can-Financials Covered Call ETF	FXF	$0.0000
	FXF.A	$0.0000
First Asset Can-Materials Covered Call ETF	MXF	$0.0000
	MXF.A	$0.0000
First Asset Canadian Convertible Bond ETF	CXF	$0.0000
	CXF.A	$0.0000
First Asset Tech Giants Covered Call ETF	TXF	$0.0000
	TXF.A	$0.0000
First Asset Morningstar US Dividend Target 50 Index ETF	UXM	$0.0000
	UXM.A	$0.0000
	UXM.B	$0.0000
	UXM.D	$0.0000
First Asset Morningstar US Momentum Index ETF	YXM	$0.0000
	YXM.A	$0.0000
	YXM.B	$0.0000
	YXM.D	$0.0000
First Asset Hamilton Capital European Bank ETF	FHB	$0.0000
	FHB.A	$0.0000
First Asset U.S. & Canada Lifeco Income ETF	FLI	$0.0000
	FLI.A	$0.0000
First Asset Active Canadian Dividend ETF	FDV	$0.0000
	FDV.A	$0.0000
First Asset Active Canadian REIT ETF	FRF	$0.0000
	FRF.A	$0.0000
First Asset Government Bond Barbell Index ETF	GXF	$0.0000
	GXF.A	$0.0000
First Asset Corporate Bond Barbell Index ETF	KXF	$0.0000
	KXF.A	$0.0000
First Asset All Canada Bond Barbell Index ETF	AXF	$0.0000
	AXF.A	$0.0000
First Asset Provincial Bond Index ETF	PXF	$0.0000
	PXF.A	$0.0000
First Asset 1-5 Year Laddered Government Strip Bond Index ETF	BXF	$0.0000
	BXF.A	$0.0000
First Asset Morningstar Emerging Markets Composite Bond Index ETF	EXM	$0.0000
	EXM.A	$0.0000

 

 

These estimated amounts are for the Special Distributions only and do not include the ongoing monthly or quarterly cash distribution amounts which were announced today in a separate press release.  These estimates replace the previous estimates announced on December 5, 2014. 

Possible Changes to Special Distribution per Unit Amounts
The per unit amounts shown above in respect of units of any of the First Asset ETFs could change if there is an increase or decrease in the number of outstanding units of such First Asset ETF as a result of subscriptions or redemptions prior to the December 30 record date.  First Asset will issue a final press release on or about December 30, 2014 which will provide the final amounts.

The actual taxable amounts of all distributions (cash and reinvested) for 2014, including the tax characteristics of the distributions, will be reported to brokers (through CDS Clearing and Depository Services Inc. or "CDS") in early 2015.

Supporting Investors' Needs
Stay in the market, minimize costs, and take advantage of a smart, simple and efficient feature designed to support investors' needs.  First Asset Distribution Reinvestment Plan (DRIP) will automatically reinvest First Asset ETF cash distributions into the First Asset ETF making the distribution.  Contact your advisor for more information.  All of the cash distributions indicated in the table above will be paid in cash unless the unitholder has enrolled in the applicable DRIP of the respective ETF. A copy of the Distribution Reinvestment Plan is available at www.firstasset.com.

This communication is intended for informational purposes only. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated.

SOURCE First Asset Exchange Traded Funds

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