TD Asset Management Inc. Announces Notional TD Exchange Traded Fund (ETF) Distribution
3 minute read
TORONTO, Sept. 13, 2024 /CNW/ - TD Asset Management Inc. ("TDAM") today announced notional non-cash reinvested distribution ("Notional Distribution") for TD Active U.S. Enhanced Dividend CAD Hedged ETF ("TUEX"). 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 Distribution has been made to all TUEX unitholders of record as indicated in the table below:
Fund Name | Ticker | Record Date | Non-Cash |
TD Active U.S. Enhanced Dividend CAD Hedged ETF | TUEX | May 31, 2024 | $4.30513 |
Up until May 31, 2024, the TD Active U.S. Enhanced Dividend CAD Hedged ETF did not qualify as a mutual fund trust under the Income Tax Act (Canada) (the "Tax Act"). TUEX was considered a unit trust, 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 TUEX was held by one or more financial institutions, TUEX was considered a financial institution for the purposes of the Tax Act. As of May 31, 2024, TUEX qualifies as a mutual fund trust under the Tax Act.
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, TUEX was required to recognize a deemed year-end for tax purposes and distribute any net income and net realized capital gains earned or realized up until the deemed year end (reflected by the record date indicated above).
In early 2025, the tax characteristics of all 2024 distributions for TUEX will be reported to brokers via the Canadian Depository for Securities ("CDS").
For more information regarding TD ETFs, visit TDAssetManagement.com.
About TD Asset Management Inc.
TD Asset Management (TDAM), a member of TD Bank Group, is a North American investment management firm. 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 $461 billion in assets. Aggregate statistics are as of June 30, 2024 for TDAM and Epoch Investment Partners, Inc. TDAM operates in Canada and Epoch Investment Partners, Inc. operates in the United States. Both entities are affiliates and are wholly-owned subsidiaries of The Toronto-Dominion Bank.
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.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
® The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
SOURCE TD Asset Management Inc.
