Toronto-based First Asset Management Inc. announced on Friday that it has obtained approval to convert CanBanc Income Corp. into an exchange-traded fund (ETF) while First Asset Canadian REIT Income Fund’s conversion into an ETF will be completed next week.

Specifically, shareholders of CanBanc Income have approved the elimination of the fund’s fixed termination date and its conversion into an ETF, which is subject to certain third-party and regulatory approvals, although First Asset anticipates it will be implemented in September, according to a statement from the asset-management firm.

“The ETF conversion will provide shareholders with all of the benefits that ETFs offer, while also preserving valuable tax attributes of the fund and allowing existing shareholders the ability to continue to defer any existing capital gains,” says Barry Gordon, president and CEO of First Asset, in a statement. “The fund delivered on its investment objectives and, as an ETF, will continue to provide an excellent choice for investors to obtain exposure to Canada’s largest banks while earning higher distributions from option premiums earned through the systematic 25% covered call overlay.”

Shareholders of CanBanc Income will not be required to take any action in connection with the fund’s conversion into an ETF unless they do not wish to remain investors in the fund. First Asset is implementing a special redemption right for those who prefer to no longer invest in the fund as long as they provide notice no later than 5 p.m. EST on Aug. 17. Shareholders who work with an advisor or other intermediary are encouraged to provide notification even sooner as advisors may have an earlier deadline.

Shareholders who redeem their shares will receive the net asset value per share of the fund on Aug. 31 and the proceeds of that special redemption will be paid on or before Sept. 22, the firm’s announcement states.

First Asset also announced in a separate statement that it has filed a final prospectus with the securities regulators of all Canadian provinces and territories in connection with the conversion of First Asset Canadian REIT Income Fund into an ETF, which will occur automatically on July 14.

Corresponding changes include a new name for the fund, which will be First Asset Canadian REIT ETF; that its units will be redesignated as common units of the ETF; and that the ticker symbol will change to RIT from RIT.UN.

First Asset Canadian REIT Income Fund unitholders are not required to take any action. Further information is available through the management information circular mailed to unitholders in June.