TORONTO, Jan. 26, 2023 /CNW/ - TD Asset Management Inc. ("TDAM") today announced notional non-cash reinvested distributions (each, a "Notional Distribution") for the TD Global Carbon Credit Index ETF (the "TD ETF"). A Notional Distribution occurs when a distribution 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 the TD ETF as indicated in the table below:
|
Fund Name
|
Fund Ticker
Symbol
|
Record Date
|
Non-Cash
Distribution
Per Unit
|
|
TD Global Carbon Credit Index ETF
|
TCBN
|
November 30, 2022
|
$2.43591
|
|
TD Global Carbon Credit Index ETF
|
TCBN
|
December 30, 2022
|
$1.32027
|
Up until November 30, 2022, the TD ETF did not qualify as a mutual fund trust under the Income Tax Act (Canada) (the "Tax Act"). The TD ETF 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, and because more than 50% of the market value of the TD ETF was held by one or more financial institutions, it was determined that as at the record date indicated above and was now considered a financial institution, as such a term is defined 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, the TD ETF was required to recognize a deemed year-end for tax purposes and distribute any net income and net realized capital gains earned or realized by the TD ETF up until the deemed year end (reflected by the record date indicated above).
In early 2023, the tax characteristics of all distributions for 2022 for the TD ETF will be reported to brokers via the Canadian Depository for Securities (CDS).
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. The TD Global Carbon Credit Index ETF ("TD ETF") is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Solactive Global Carbon Credit TR CAD Hedged Index ("Index") and/or any trademark(s) associated with the Index or the price of the Index at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards TDAM, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the TD ETF. Neither publication of the Index by Solactive AG nor the licensing of the Index or any trademark(s) associated with the Index for the purpose of use in connection with the TD ETF constitutes a recommendation by Solactive AG to invest capital in said TD ETF nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this TD ETF.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
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About TD Asset Management Inc.
TD Asset Management Inc. ("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 $398 billion in assets. Aggregate statistics are as of September 30, 2022 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.
SOURCE TD Asset Management Inc.
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