Matrix capping two funds

Matrix Funds Management is capping Matrix Tax Deferred Income Fund and Matrix Tax Deferred Income Trust Pool in response to the proposed changes to Canadian tax laws contained in the recent federal budget announced on March 21.

The budget proposes new rules that would eliminate tax advantages associated with the use of forward agreements to achieve capital gains treatment on income that would otherwise be treated as ordinary income and is generally described as “character conversion transactions”. While definitive legislation has not yet been finalized, Matrix believes that further increases to the size of character conversions will not be permitted.