TD Asset Management Inc. (TDAM) on Friday announced proposed changes to several TD Private Funds.
To reduce duplication of mutual fund offerings that have similar investment objectives across its product lineup, TDAM plans to merge the following TD Private Funds and TD Mutual Funds:
- TD Private Canadian Bond Income Fund will merge into TD Short Term Bond Fund;
- TD Private Canadian Bond Return Fund will merge into TD Canadian Bond Fund;
- TD Private Canadian Equity Plus Fund will merge intoTD Canadian Equity Fund;
- TD Private U.S. Mid-Cap Equity Fund will merge into TD U.S. Mid-Cap Growth Fund;
- TD Private International Equity Fund will merge into Epoch International Equity Fund;
- TD Private Target Return Fund will merge into TD Target Return Conservative Fund; and
- TD Private Target Return Plus Fund will merge into TD Target Return Balanced Fund.
Effective Feb. 12, 2016, unitholders of each discontinuing TD Private Fund will receive the Private or Private-EM Series units of the corresponding continuing TD Mutual Fund on a dollar-for-dollar and tax-deferred basis. Each discontinuing TD Private Fund will be wound up following the mergers.
The proposed mergers have been approved by TDAM’s independent Review Committee, TDAM says in a statement.
Investors in the discontinuing TD Private Funds may redeem or switch their units up to the close of business on Feb. 11, 2016.
On Feb. 5, 2016, TDAM plans to terminate the operations of TD Private Canadian Strategic Opportunities Fund in order to streamline the TD Private Funds offering. Unitholders of the the fund may redeem or switch their holdings for settlement on or prior to the termination date.
Effective Feb.1, 2016, TDAM will cease charging a management fee for two TD Private Funds while the maximum management fee disclosed in the TD Private Funds’ prospectus remains unchanged. TDAM has chosen to cease charging a management fee on two TD Private Funds: TD Private International Stock Fund and
TD Private US Blue Chip Equity Currency Neutral Fund.