Toronto-based Russell Investments Canada Ltd. has decided to close new and additional investments in Russell Fixed Income Class & Russell Global High Income Bond Class at the close of business April 12.
Russell said Monday it continues to assess the implications of the 2013 federal budget of that limits the use of forward contracts to effectively convert investment income to capital gains in investment funds, also referred to as “character conversion transactions”.
The caps are aimed at ensuring the two funds are being managed in a manner that achieves tax-efficiency for existing shareholders
Although Russell is seeking further clarification regarding the budget measures, it said that transactions in place prior to March 21, 2013 are expected to remain tax-efficient until their expiration dates.
The two funds are expected to provide tax-efficient exposure to their underlying portfolios until 2017 when the current forward transactions expire.