Toronto-based TD Asset Management Inc. Wednesday announced its intention to cap sales of certain of its funds.
The move follows the March 21, 2013 federal budget, which 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 following funds employ these transactions, TD Asset Management Inc. (TDAM) has made the decision to protect existing unitholders and no longer accept additional investments to these funds as of the close of business Friday, April 5:
- TD Corporate Bond Capital Yield Fund
- TD Fixed Income Capital Yield Pool Class
- TD Global High Yield Capital Class
- TD Private Bond Capital Yield Fund