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TD Asset Management Inc. Announces Two New Notional TD ETF Distributions and a Revision to the Notional TD ETF Distribution for the TD Morningstar ESG Canada Equity Index ETF
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:
TD Morningstar ESG U.S. Equity Index ETF
TD Morningstar ESG International Equity Index ETF
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:
TD Morningstar ESG Canada Equity Index ETF
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.
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® 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.
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