The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Connor, Clark & Lunn Capital Markets Inc. Comments on Federal Budget Announcement

Wednesday, March 27, 2013

Connor, Clark & Lunn Capital Markets Inc. Comments on Federal Budget Announcement15:31 EDT Wednesday, March 27, 2013TORONTO, March 27, 2013 /CNW/ - The recently announced federal budget proposed measures with respect to certain financial arrangements, commonly known as forward purchase and sale agreements, that would eliminate certain tax benefits for taxable unitholders of investment funds that utilize forward agreements.  The budget announcement states that these changes apply only to forward agreements entered into on or after March 21, 2013 ("Budget Day").Several funds (the "Funds") managed by Connor, Clark & Lunn Capital Markets Inc. utilize forward agreements.  Each of these agreements was entered into prior to Budget Day.  Based on our current understanding of the budget announcement and our discussions with tax counsel, distributions paid by these funds are expected to continue to be treated as capital gains and return of capital for tax purposes until such time as their respective forward agreements reach their scheduled termination dates.  For funds with termination dates, their respective forward agreements are scheduled to terminate on the same date as the fund's termination date.  For funds without termination dates, their respective forward agreements are scheduled to terminate approximately five years from their inception date.  The budget announcement has not yet been enacted and there is no assurance that the proposals will not be changed from the proposals announced.    FundsTSX SymbolFund ScheduledTermination DateForward ScheduledTermination DateAustralian Banc Capital Securities TrustAUZ.UNJune 29, 2016June 29, 2016Build America Investment Grade Bond FundBAB.UNFebruary 27, 2015February 27, 2015Canadian 50 Advantaged Preferred Share Income FundCPF.UNn/aMay 18, 2017Canadian Banc Capital Securities TrustCSB.UNJune 30, 2014June 30, 2014HBanc Capital Securities TrustHSC.UNMay 30, 2015May 30, 2015ING Diversified Floating Rate Senior Loan FundIFL.UNn/aFebruary 28, 2018ING Floating Rate Senior Loan FundISL.UNn/aJune 30, 2016North American Financials Capital Securities TrustNAF.UNNovember 30, 2014November 30, 2014U.S. Agency Mortgage-Backed REIT Advantaged FundUSM.UNn/aOctober 23, 2017Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the Funds and anticipated distributions, events or results and may include statements regarding the future financial performance of the Funds. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.SOURCE: Australian Banc Capital Securities TrustFor further information: For more information on funds managed by Connor, Clark & Lunn Capital Markets Inc., please visit www.cclcapitalmarkets.com or contact: Darren Cabral Vice President & CFO Connor, Clark & Lunn Capital Markets Inc. (416) 214-6182 or 1 (888) 276-2258 cclcapitalmarkets@cclgroup.com