Canada-based CIBC Asset Management has said that it is intending to offer the Renaissance Corporate Bond Fund for sale as of 26 August 2013.
The Fund benefits from the research-driven approach of the experienced CIBC Global Asset Management Fixed Income Team. The Fund has a track record of strong returns by investing in a portfolio of corporate bonds that have passed rigorous, internal credit analysis.
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Since November 18, 2009 , the Fund has been the underlying Reference Fund for the Renaissance Corporate Bond Capital Yield Fund. CIBC Asset Management also announced that, effective as of the close of business August 23, 2013 , it will cease to allow new purchases and switches into the Renaissance Corporate Bond Capital Yield Fund.
This is in response to the July 11, 2013 Department of Finance announcement on proposed transitional rules for the character conversion transactions announced in the 2013 Federal Budget.
The March 2013 Federal Budget proposed changes to eliminate "character conversion transactions" that use forward contracts to convert ordinary income to capital gains for tax purposes. The July 11, 2013 announcement proposed to extend the transition period in respect of forward agreements that were entered into before March 21, 2013 until the end of 2014. Given the proposed extension, CIBC Asset Management has determined it is in the best interest of existing unitholders to cap the Renaissance Corporate Bond Capital Yield Fund at this time.
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