Toronto-based JovFinancial Solutions Inc., the manager of Jov Leon Frazer Enhanced Opportunities Fund Inc., said Friday that the fund will no longer accept further subscriptions in light of the phase out of the tax credits available to investors in labour-sponsored investment funds proposed by the 2013 federal budget.
Redemptions are unaffected by the decision, JovFinancial said.
“The board of directors of the fund continues to assess the budget proposal and its potential impact and will be making a submission to the federal government requesting relief from the claw-back of tax credits that applies when an investment in a labour-sponsored fund is redeemed early,” JovFinancial said in a release.
“Once all of the details are known, the board of directors of the fund will determine the best long-term course of action for the fund.”
JovFinancial also announced that, effective May 15, Steven Hawkins, president and CEO of the Fund, will be replaced by Philip Armstrong.
Effective May 15, Hawkins is also resigning as a director of the fund.
Julie McMaster, chief financial officer of the fund, has also been replaced by Jason Mackey.
Hawkins and McMaster are employees of Horizons ETFs Management (Canada) Inc., a former affiliate of JovFinancial, and their services have been provided to the fund according to a transition services agreement between Horizons and Jovian Capital Corp., the parent company of JovFinancial, that expires on May 15.
Armstrong is the CEO and a director of Jovian and is a financial services veteran with over 40 years’ experience. Mackey is the CFO of Jovian and has worked in the financial industry for over 20 years.