Toronto-based First Asset Investment Management Inc. plans to scrap all advisor-class units from its ETFs lineup.
The decision to eliminate this class of ETF units, which includes a service fee paid to financial professionals, comes in the wake of anticipated changes to the regulatory environment, according to the firm’s news releases.
This change is expected to take effect April 28, at which time advisor-class units will cease to be issued or available for conversion from common-class to advisor-class units.
These units, which bear an identifying mark of “.A,” “.D” or “.V” after its ticker symbol, only make up less than 2% of the firm’s assets under management. First Asset expects demand for advisor class units to decline as new regulatory measures take shape.
As part of this move, First Asset intends to reduce the annual management fee on all the advisor class units and convert them to common-class units of the same ETF, on or about July 7.
No action on the part of unitholders is required to move forward with these changes.
A full list of all 28 advisor-class ETF units is available in the company’s news release.
Photo copyright: timbrk/123RF