Marret Fund will convert from a forward sale fund to a conventional bond fund

The Marret Investment Grade Bond Fund currently achieves deferral and capital gains treatment on an underlying portfolio of mostly foreign bonds by having entered into a forward agreement for the sale of TSX-listed companies at prices reflecting the performance of the portfolio held in other hands.  This arrangement will cease to be grandfathered from the character conversion (a.k.a. derivative forward agreement) rules if the maturity date of the forward agreement of October 31, 2014 is extended.

Accordingly, the forward agreement will be settled, the resulting net capital gain will be distributed to the unitholders and the Fund will continue on investing in the underlying portfolio directly.

There will be more transactions like this.

Neal Armstrong.  Summary of Marret Investment Grade Bond Fund Circular under Other – Conversions – Forward Sale Fund to Conventional Fund.