Seven funds closing to additional investment
Two funds to close to new purchases
Move follows budget crackdown on character conversions
Ottawa to eliminate "character conversion transactions"
Fund manager reviewing impact to Desjardins Capital Yield Bond Fund
Company says it is waiting for further guidance from the federal government
The 2013 federal budget appears to be cracking down on conversion contracts, which convert what would otherwise be considered income into capital gains. Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth Management, discusses the impact of this crackdown on derivative forward gains and funds using these strategies. Golombek spoke from the Media Lock up government conference centre in Ottawa.
Changes will effect mutual funds that use these contracts to increase yields
TD Global High Yield Pool, TD Global High Yield Pool Trust to end Oct. 3