TD Asset Management Inc. Announces Intention to Cap Sales of the TD Private Bond Capital Yield Fund
TORONTO, April 3, 2013 /CNW/ - The March 21, 2013 federal budget
included measures that would eliminate certain tax benefits in
investment funds that use forward contracts to convert income to
capital gains for tax purposes. The budget describes this structure as
"character conversion transactions."
Because the TD Private Bond Capital Yield Fund employs these
transactions, TD Asset Management Inc. (TDAM) has made the decision to
protect existing unitholders and no longer accept additional
investments to this Fund as of the close of business Friday, April 5,
2013.
Although TDAM is seeking further clarification from the federal
government regarding the budget measures, it appears that increasing
the size of existing character conversion transactions is not
permitted. For existing unitholders we believe there will be no change
in tax treatment for a minimum of 180 days from March 21, 2013 and as a
result of this change there is no reason to redeem their units.
About TD Asset Management Inc.
TD Asset Management Inc. (TDAM) is a fully integrated North American
investment manager, with CDN$211 billion in assets under management as
of January 31, 2013. TDAM offers investment solutions to corporations,
pension funds, endowments, foundations and high net worth individuals.
A cornerstone of the success of TDAM's investment strategies has been
the firm's disciplined and risk-controlled approach to investment,
along with its ability to innovate progressive solutions that meet
clients' changing needs and objectives.
Under TD Private Funds, TDAM manages approximately CDN$8 billion in
assets, as of February 28, 2013. TD Waterhouse Private Investment
Counsel Inc. is one of Canada's largest private client money management
firms. TD Waterhouse Private Investment Counsel's extensive network of
professional portfolio managers provide discretionary investment
management services to high net worth individuals and their families,
small and mid-size corporations, charitable organizations and
foundations, and executors and trustees from coast to coast.
SOURCE: TD Asset Management Inc.
For media inquiries, please contact:
Amanda Tran
TD Bank Group
416-983-7212
amanda.tran@td.com