Arrow Capital Confirms Tax-Advantaged Distributions To Continue

Middle Content: 

TORONTO, ON, March 26, 2013


Press Release: 

The federal budget tabled on March 21, 2013 contains a proposed amendment to Canada’s Income Tax Act (the “Character Conversion Amendment”) which would affect certain tax benefits gained by taxable unitholders of investment funds, such as the East Coast Investment Grade Income Fund and the Raven Rock Strategic Income Fund (the “Funds”), that utilize forward sale agreements to obtain exposure to an underlying reference portfolio. The Funds’ forward sale agreements currently allow unitholders to receive tax-advantaged distributions of return of capital. Based on its review to date, Arrow Capital Management Inc., the manager of the Funds, believes that the Funds and the tax characterization of distributions received by unitholders will be unaffected by the Character Conversion Amendment until the expiration of the forward agreements in May 2017 and November 2017, respectively. The manager awaits further guidance from the Federal Government on the implementation of the budget proposals and will provide additional details as soon as it is in a position to do so.

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