TORONTO, ON - March 30, 2016 /CNW/ -  The 2016 Federal Budget has proposed changes to Canadian tax law that will impact the tax treatment of investors holding shares of mutual fund corporations, including Scotia Corporate Class Inc. The Federal Budget proposes to amend the Income Tax Act (Canada) so that an exchange of shares of a mutual fund corporation that results in the investor switching between mutual funds will be considered to be a disposition at fair market value for tax purposes.

Currently, shareholders of mutual funds that are classes of a mutual fund corporation may switch their shares of one mutual fund for shares of another mutual fund that is a class of the same corporation without triggering a taxable disposition. However, if these proposed changes are implemented, switches between mutual funds that are classes of Scotia Corporate Class Inc. that occur on or after October 1, 2016 will be taxable transactions for shareholders.

Investors should consult with their financial advisor on how this proposal may impact their investment plans. 1832 Asset Management L.P., the manager of the ScotiaFunds, continues to assess and evaluate this proposal and its potential impact on the Funds.

The ScotiaFunds affected by the proposed changes to Canadian tax law are:

About 1832 Asset Management L.P.

1832 Asset Management L.P. offers a range of wealth management solutions, including mutual funds, and investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank.

About Scotiabank

Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. We are dedicated to helping our 23 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 89,000 employees and assets of $920 billion (as at January 31, 2016), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using CNW. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankViews.