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Purpose High Interest Savings Fund (PSA)
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CI High Interest Savings ETF (CSAV)
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Horizons High Interest Savings ETF (CASH)
Q: Hello, the distribution paid by these ETFs is starting to come down, even before the new rules becoming effective Jan 31th. Distributions will also follow the BoC rate when it starts going down as well. What would happen if shareholders start selling PSA, CSAV or CASH en masse? Is there some sort of marketmaker for these ETFs that, no matter what, will keep the share price close to NAV? Thanks.
5i Research Answer:
There is a market maker, which can help with liquidity. But the underlying assets are very liquid, and can be easily redeemed or sold. We would not expect big issues here, barring some sort of 'panic' event in the market which cannot be predicted. But even in such a case redemptions could be controlled or trading halted to allow for a more orderly exit.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PSA.