TORONTO, Aug. 3, 2021 /CNW/ - TD Asset Management
Inc. ("TDAM") today announced notional non-cash reinvested
distributions (each, a "Notional Distribution") for the TD
Exchange-Traded Funds listed below (collectively, the "TD ETFs"). A
Notional Distribution occurs when a distribution from a TD ETF is
made in the form of units, and then immediately consolidated with
the units held prior to the distribution, so that the total number
of units held after the distribution is identical to the number of
units held prior to the distribution.
The Notional Distributions have been made to all unitholders of
record of each TD ETF as at June 30,
2021:
Fund
Name
|
Ticker
Symbol
|
Non-Cash
Distribution
Per Unit
|
TD Morningstar ESG
U.S. Equity Index ETF
|
TMEU
|
1.32587
|
TD Morningstar ESG
International Equity Index ETF
|
TMEI
|
0.66307
|
Up until the record date, each TD ETF did not qualify as a
mutual fund trust under the Income Tax Act (Canada) (the "Tax Act"). Each TD ETF was
considered a financial institution, as such term is defined under
the Tax Act, for purposes of the "mark-to-market" rules contained
in the Tax Act because more than 50% of the market value of each TD
ETF was held by one or more financial institutions. It was
determined that, as at the record date indicated above, the TD ETFs
no longer had more than 50% of its market value held by one or more
financial institutions and was no longer considered a financial
institution.
The Tax Act contains special rules for determining the income of
financial institutions, including, but not limited to, the
realization of all unrealized gains or losses on mark-to-market
property held by the financial institution on income account at the
end of any given tax year. In acknowledging this change of status,
the TD ETFs were required to recognize a deemed year-end for tax
purposes and distribute any net income and net realized capital
gains earned or realized by each TD ETF up until the deemed year-
end (reflected by the record date indicated above).
In early 2022, the tax characteristics of all distributions for
2021 for the TD ETFs will be reported to brokers via the Canadian
Depository for Securities (CDS).
TDAM also announced a revision to a Notional Distribution for
the TD Morningstar ESG Canada Equity Index ETF (TMEC) previously
reported on May 28, 2021.
Unitholders of record as at April 30, 2021, will receive a
Notional Distribution for the 2021 tax year as set out below.
Details of the revised per unit reinvested distribution are as
follows:
Fund
Name
|
Fund
Ticker
|
Previous
Non-Cash
Distribution per unit (C$)
|
Revised
Non-Cash
Distribution per unit (C$)
|
TD Morningstar ESG
Canada Equity Index ETF
|
TMEC
|
0.23489
|
0.82648
|
For more information regarding TD ETFs, visit
TDAssetManagement.com
Commissions, management fees and expenses all may be associated
with investments in exchange-traded funds (ETFs). Please read the
prospectus and ETF Facts before investing. ETFs are not guaranteed,
their values change frequently and past performance may not be
repeated. ETF units are bought and sold at market price on a stock
exchange and brokerage commissions will reduce returns.
Morningstar® US Sustainability Extended
IndexSM, Morningstar® Developed Markets
ex-North America Sustainability Extended
IndexSM and Morningstar® Canada
Sustainability Extended IndexSM are service marks
of Morningstar, Inc. and have been licensed for use for certain
purposes by TD Asset Management Inc. The TD Morningstar ESG U.S.
Equity Index ETF, TD Morningstar ESG International Equity Index ETF
and TD Morningstar ESG Canada Equity Index ETF (collectively, the
"TD ETFs") are not sponsored, endorsed, sold or promoted by
Morningstar Research Inc. ("Morningstar"), and Morningstar makes no
representation regarding the advisability of investing in the TD
ETFs.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned
subsidiary of The Toronto-Dominion Bank.
All trademarks are the property of their respective owners.
® The TD logo and other trademarks are the property
of The Toronto-Dominion Bank or its subsidiaries.
About TD Asset Management Inc.
TD Asset Management (TDAM), a member of TD Bank Group, is a
North American investment management firm. Operating through TD
Asset Management Inc. in Canada
and TDAM USA Inc. in the U.S.,
TDAM brings new thinking to investors' most important challenges.
TDAM offers investment solutions to corporations, pension funds,
endowments, foundations and individual investors. Additionally,
TDAM manages assets on behalf of almost 2 million retail investors
and offers a broadly diversified suite of investment solutions
including mutual funds, professionally managed portfolios and
corporate class funds. Asset management businesses at TD manage
$428 billion in assets as at
June 30, 2021. Assets under
management include TD Asset Management Inc., TDAM USA Inc. and Epoch Investment Partners Inc.
All entities are wholly-owned subsidiaries of The Toronto-Dominion
Bank.
SOURCE TD Asset Management Inc.