Fiera caps Tactical Bond Yield Fund

Montreal-based Fiera Capital Corp. (TSX:FSZ) said Friday it will no longer accept new or additional investments to Fiera Tactical Bond Yield Fund as of the close of business, April 8, because of measures in the recent federal budget.

The fund uses forward contracts to convert income to capital gains for tax purposes. The 2013 budget included measures that would eliminate certain tax benefits of these "character conversion transactions". These measures apply to a forward contract entered into on or after March 21.

Based on the text of the budget, Fiera believes that there will be no change in tax treatment for existing unitholders up to the forward termination date, Aug. 17, 2016.