First Asset DEX Government Bond Barbell Index ETF To Trade On Toronto Stock Exchange
First Asset DEX Government Bond Barbell Index ETF (the "ETF") – An application has been granted for the original listing in the Industrial category of 200,000 common units (the "Common Units") and 50,000 advisor class units (the "Advisor Class Units") of the ETF (collectively, the "Units"), all of which will be issued and outstanding, upon the completion of an initial public offering.
Listing of the Units will become effective at 5:01 p.m. on Monday, July 9, 2012 in anticipation of the offering closing prior to the opening of trading on Tuesday, July 10, 2012. The Units will be posted for trading at the opening on July 10, 2012.
The ETF is authorized to issue an unlimited number of redeemable, transferable Units of each of the Common Units and the Advisor Class Units, each of which represents an undivided interest in the net assets of the ETF. Units of the ETF are being offered for sale on a continuous basis and there is no maximum number of Units of the ETF that may be issued.
Registration of interests in, and transfers of, Units of the ETF will be made only through the book-entry only system of CDS Clearing and Depository Services Inc. ("CDS"). Units of the ETF must be purchased, transferred and surrendered for redemption only through a CDS Participant. Upon buying Units of the ETF, the owner will receive only the customary confirmation.
Additional information on the Units may be found in the final prospectus of the ETF dated June 7, 2012 (the "Prospectus") which is available at www.SEDAR.com. Capitalized terms not otherwise defined below are as defined in the Prospectus.
Stock Symbol: GXF CUSIP: 31863E 10 0 Currency: CDN$
Advisor Class Units
Stock Symbol: GXF.A CUSIP: 31863E 20 9 Currency: CDN$
Market Maker: TD Securities Inc.
Other Markets: None
Head Office: 95 Wellington Street West
Toronto, Ontario M5J 2N7
Email Address: firstname.lastname@example.org
Website Address: www.firstasset.com
Telephone Number: (416) 642-1289
Fax Number: (416) 362-2199
Investor Relations: Rob MacNiven
Manager: First Asset Investment Management Inc.
& Registrar: Computershare Investor Services Inc. at its principal office in Toronto.
Chief Financial Officer: Karen Wagman
Corporate Secretary: Z. Edward Akkawi
Fiscal Year End: December 31
Incorporation: The ETF is an unincorporated open-ended mutual fund trust established on June 6, 2012 under the laws of the Province of Ontario by an amended and restated Declaration of Trust.
Nature of Business: The ETF has been designed to replicate, to the extent possible, the performance of the DEX Government Bond Barbell Index, net of expenses. The investment strategy of the ETF is to invest in and hold Constituent Securities of the DEX Government Bond Barbell Index
Advisor Class: The only difference between Common Units and Advisor Class Units is the Management Fee payable by the ETF due to the service fee payable by the Manager in respect of the Advisor Class Units. Accordingly, the net asset value per Unit of each class will not be the same as a result of the different fees allocable to each class of Units. Each Class of the ETF will pay annual management fees to the Manager equal to an annual percentage of the net asset value ("NAV") of that class, calculated daily and payable monthly in arrears, plus, in respect of the Advisor Class Units, an additional amount calculated daily and paid as soon as practicable after the end of each calendar quarter, based on the NAV per Advisor Class Unit of the ETF, in each case, plus applicable taxes. The annual management fee is 0.20% of NAV of the ETF and the additional amount applicable to Advisor Class Units is 0.50% of NAV per Advisor Class Unit (total 0.70%).
Conversion of Units: Unitholders of the ETF may convert Advisor Class Units into Common Units or Common Units into Advisor Class Units in any month. To do so, Units must be surrendered and the Unitholder's CDS Participant must deliver to CDS (at its office in the City of Toronto) on behalf of the Unitholder a written notice of the Unitholder's intention to convert during the period from the first day of a month until 5:00 p.m. (Toronto time) on the last business day prior to the 16th day of such month. Units surrendered for conversion will be converted on the last Trading Day of that month. For a Unitholder's Advisor Class Units so converted, the Unitholder will receive a number of whole Common Units equal to the net asset value per Advisor Class Unit as of the Advisor Monthly Conversion Date divided by the net asset value per Common Unit as of the Advisor Monthly Conversion Date. As no fractional Units will be issued upon conversion, any remaining fraction of an Advisor Class Unit will be redeemed at its net asset value. For a Unitholder's Common Units so converted, the Unitholder will receive a number of whole Advisor Class Units equal to the net asset value per Common Unit as of the Common Monthly Conversion Date divided by the net asset value per Advisor Class Unit as of the Common Monthly Conversion Date. As no fractional Units will be issued upon conversion, any remaining fraction of a Common Unit will be redeemed at its net asset value.
Distributions: Any cash distributions of income on Units of a First Asset ETF are expected to be made monthly. As a result of the higher management fees on the Advisor Class Units, any such cash distributions on the Advisor Class Units are expected to be less than the distributions payable on the Common Units.
Initial Issuance of Units: Pursuant to the Prospectus, 200,000 Common Units and 50,000 Advisor Class Units of the ETF will be initially issued at a subscription price of $10.00 per Unit. Units of the ETF are being issued and sold on a continuous distribution basis.