TORONTO , Feb. 10, 2021 /CNW/ - Fidelity Investments Canada ULC, one of Canada's top investment management firms, today announced that it intends to subdivide the units (the Units ) of the exchange-traded funds (the ETFs ) listed below.
Each subdivision will be effective after the close of trading on March 3, 2021 for unitholders of record on March 2, 2021 .
Units will trade on a "due bill" basis, as described below, on the TSX from March 1, 2021 to March 3, 2021 . The Units will trade on a split-adjusted basis as of March 4, 2021 .
Each " Split Ratio " shown below indicates the number of Units that a unitholder of the applicable ETF will hold after the subdivision in relation to the number of Units held by the unitholder before the subdivision. Unitholders of an ETF with a Split Ratio of 2:1 will be entitled to receive one additional Unit of that ETF for every Unit they own as of the record date. Unitholders of an ETF with a Split Ratio of 3:1 will be entitled to receive two additional Units of that ETF for every Unit they own as of the record date.
|
ETF
|
Ticker
|
Split Ratio
|
|
Fidelity Canadian Monthly High Income ETF
|
FCMI
|
2:1
|
|
Fidelity Canadian Momentum Index ETF
|
FCCM
|
3:1
|
|
Fidelity Canadian Value Index ETF
|
FCCV
|
3:1
|
|
Fidelity Global Monthly High Income ETF
|
FCGI
|
2:1
|
|
Fidelity International Momentum Index ETF
|
FCIM
|
3:1
|
|
Fidelity U.S. Momentum Currency Neutral Index ETF
|
FCMH
|
3:1
|
|
Fidelity U.S. Momentum Index ETF
|
FCMO
|
3:1
|
|
Fidelity U.S. Value Currency Neutral Index ETF
|
FCVH
|
3:1
|
|
Fidelity U.S. Value Index ETF
|
FCUV
|
3:1
|
When the subdivision of the Units of an ETF occurs, the net asset value per Unit will decrease by the applicable Split Ratio, so that the subdivision has no impact on the value of the unitholder's total position. The unitholder's cost per Unit will also decrease by the same Split Ratio, although their total cost will remain unchanged.
The "due bill" trading procedures of the TSX will apply to the Unit subdivisions. A due bill is an entitlement attached to listed securities undergoing a corporate action, such as a Unit subdivision. Any trades that are executed on the TSX during the due bill period will be identified to ensure purchasers of the Units receive the entitlement to the Unit subdivision.
The mandates of the ETFs remain unchanged and there will be no impact to unitholders. Unitholders are not required to take any action, as their brokerage accounts will automatically be updated to reflect the Unit subdivisions after the effective date. A unitholder's broker may take several days to reflect the Unit subdivisions in the unitholder's account (the Settlement Period ). Unitholders are encouraged to speak to their broker during the Settlement Period should they wish to trade any Units of the ETFs in question.
For more information, please visit www.fidelity.ca .
About Fidelity Investments Canada ULC
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals.
As a privately-owned company, our people and world class resources are committed to doing what is right for investors and their long-term success. Our clients have entrusted us with $178 billion in assets under management (as at February 3, 2021 ) and they include individuals, financial advisors, pension plans, endowments, foundations and more.
We are proud to provide investors a full range of investment solutions through mutual funds and exchange-traded funds, including domestic, international and global equity, income-oriented strategies, asset allocation solutions, managed portfolios, sustainable investing and our high net worth program. Fidelity Funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies.
Read a fund's prospectus and consult your financial advisor before investing. Exchange-traded funds are not guaranteed, their values change frequently, and past performance may not be repeated. Commissions, management fees, brokerage fees and expenses may all be associated with investments in exchange-traded funds and investors and may experience a gain or loss.
Find us on social media @FidelityCanada
SOURCE Fidelity Investments Canada ULC
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2021/10/c0637.html