Fidelity makes changes to capital yield funds

Fidelity Investments Canada ULC said Monday it is taking steps to protect existing investors in its capital yield funds by closing the funds to additional investments. Changes proposed in the 2013 federal budget are expected to remove the tax advantages of mutual funds, such as capital yield funds, that employ character conversion transactions. Specifically, the budget noted that the returns produced under these structures will be treated as income, as early as 180 days following March 21. Budget 2013: Funds, ETFs take a hit Fideltiy notes that it has become clear that increasing the size of existing character conversion transactions is not permitted. Accordingly, as of end of business Tuesday, April 2, the company will be closing its capital yield funds to additional investments. The funds that will be closing to additional investments are: Fidelity Premium Fixed Income Capital Yield Private Pool Class Fidelity Premium Tactical Fixed Income Capital Yield Private Pool Fidelity Corporate Bond Capital Yield Class Fidelity U.S. Monthly Income Capital Yield Fund Fidelity American High Yield Capital Yield Fund Fidelity Tactical Fixed Income Capital Yield Fund Fidelity Canadian Bond Capital Yield Fund Fidelity completes capital yield fund mergers Sentry reopens corporate class fixed-income funds Invesco simplifies product offering Facebook LinkedIn Twitter Keywords Character conversionCompanies Fidelity Investments Canada ULC Share this article and your comments with peers on social media IE Staff Related news

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