Exchange Bulletin
First Asset Morningstar International Value Index ET (VXM, VXM.A, VXM.B, V) To Trade On Toronto Stock Exchange
First Asset Morningstar International Value Index ETF (the "ETF") - An application has been granted for the original listing in the Industrial category of 40,000 common units (the "Common Units"), 10,000 advisor class units (the "Advisor Class Units"), 40,000 unhedged common units (the "Unhedged Common Units"), and 10,000 unhedged advisor class units (the "Unhedged Advisor Class Units", and together with the Common Units, the Advisor Class Units, and the Unhedged Common Units, collectively the "Units") of the ETF, all of which will be issued and outstanding, upon the completion of an initial public offering (the "Offering").
Listing of the Units will become effective at 5:01 p.m. on Monday, November 17, 2014 in anticipation of the offering closing prior to the opening of trading on Tuesday, November 18, 2014. The Units will be posted for trading at the opening on November 18, 2014, upon confirmation of the closing of the Offering.
The ETF is authorized to issue an unlimited number of Units of each of the Common Units, Advisor Class Units, Unhedged Common Units, and Unhedged Advisor Class Units, each of which represents an undivided interest in the net assets of the ETF. Units of the ETF are being offered for sale on a continuous basis and there is no maximum number of Units of the ETF that may be issued.
Registration of interests in, and transfers of, Units of the ETF will be made only through the book-entry only system of CDS Clearing and Depository Services Inc. ("CDS"). Units of the ETF must be purchased, transferred and surrendered for redemption only through a CDS Participant. Upon buying Units of the ETF, the owner will receive only the customary confirmation.
Additional information on the Units may be found in the final prospectus of the ETF dated October 20, 2014 (the "Prospectus") which is available at www.SEDAR.com. Capitalized terms not otherwise defined below are as defined in the Prospectus.
Common Units
| Stock Symbol: "VXM" | CUSIP: 31864Y 10 5 | Trading Currency: CDN$ |
Advisor Class Units
| Stock Symbol: "VXM.A" | CUSIP: 31864Y 20 4 | Trading Currency: CDN$ |
Unhedged Common Units
| Stock Symbol: "VXM.B" | CUSIP: 31864Y 30 3 | Trading Currency: CDN$ |
Unhedged Advisor Class Units
| Stock Symbol: "VXM.D" | CUSIP: 31864Y 40 2 | Trading Currency: CDN$ |
| Designated Market Maker: | RBC Capital Markets |
| Other Markets: | None |
| Head Office Address: | 95 Wellington Street West Suite 1400 Toronto, ON M5J 2N7 |
| Email: | info@firstasset.com |
| Website: | www.firstasset.com |
| Head Office Telephone Number: | (416) 642-1289 |
| Fax Number: | (416) 362-2199 |
| Investor Relations: | Z. Edward Akkawi (416) 640-4938 eakkawi@firstasset.com |
| Manager: | First Asset Investment Management Inc. |
| Transfer Agent & Registrar: | Computershare Trust Company of Canada at its principal office in Toronto. |
| Chief Financial Officer: | Karen Wagman |
| Corporate Secretary: | Z. Edward Akkawi |
| Fiscal Year End: | December 31 |
| Incorporation: | The ETF is an unincorporated open-ended mutual fund trust established on October 20, 2014 under the laws of the Province of Ontario by an amended and restated Declaration of Trust. |
| Unhedged Units: | The primary difference between the currency hedged Units and the Unhedged Units, of the ETF is that the exposure in relation to the Unhedged Units of the ETF to currencies other than the Canadian dollar will not be hedged back to the Canadian dollar. |
| Nature of Business: | The ETF has been designed to replicate, to the extent possible, the performance of the Morningstar® Developed Markets ex-North America Target Value Index™, net of expenses. The ETF invests in equity securities of the largest and most liquid issuers from countries classified by Morningstar as emerging markets, based on proprietary research generated by Morningstar, and is designed to provide diversified exposure emerging markets issuers, which are considered to be "good value" based on characteristics like low price to earnings and low price to cash flow ratios. |
| Conversion of Units: | Unitholders may convert Units of any class of the First Asset ETF (the "Converting Units") into whole Units of any other class of the ETF (the "Converted Units") in any month. To do so, the Converting Units must be surrendered and the Unitholder's CDS Participant must deliver to CDS (at its office in the City of Toronto) on behalf of the Unitholder a written notice of the Unitholder's intention to convert during the period from the first day of a month until 5:00 p.m. (Toronto time) on the last business day prior to the 16th day of such month. Converting Units surrendered for conversion will be converted on the last Trading Day of that month (the "Monthly Conversion Date"). For a Unitholder's Converting Units so converted, the Unitholder will receive a number of whole Converted Units equal to the net asset value per Converting Unit as of the Monthly Conversion Date, multiplied by the number of Converting Units so converted divided by the net asset value per Converted Unit as of the Monthly Conversion Date. As no fractional Units will be issued upon conversion, any remaining fraction of a Converting Unit will be redeemed at its net asset value. |
| Distributions: | Any cash distributions of income on Units of the ETF are expected to be made at least quarterly. If, in any taxation year, after the regular distributions, there would remain in the ETF additional net income or net realized capital gains, the ETF will, after December 15 but on or before December 31 of that year, be required to pay or make payable such net income or net realized capital gains as one or more special year-end distributions in such year to Unitholders as is necessary to ensure that the ETF will not be liable for income tax on such amounts under Part I of the Tax Act (after taking into account all available deductions, credits and refunds). Such special distributions may be paid in the form of Units of the relevant class of the ETF and/or cash. Any special distributions payable in Units of the relevant class of the ETF will increase the aggregate adjusted cost base of a Unitholder's Units of that class. Immediately following payment of such a special distribution in Units, the number of Units of that class outstanding will be automatically consolidated such that the number of Units of that class outstanding after such distribution will be equal to the number of Units of that class outstanding immediately prior to such distribution, except in the case of a non-resident Unitholder to the extent tax is required to be withheld in respect of the distribution. |
| Initial Issuance of Units: | Pursuant to the Prospectus, 40,000 Common Units, 10,000 Advisor Class Units, 40,000 Unhedged Common Units and 10,000 Unhedged Advisor Class Units of the ETF will be initially issued at a subscription price of $20.00 per Unit. Units of the ETF are being issued and sold on a continuous distribution basis. |
