TD Asset Management Inc. Monday announced plans to terminate the operations of TD Global High Yield Pool and TD Global High Yield Pool Trust on October 3.
The decision to terminate the pools was made as a result of measures announced in the federal budget in March 2013 regarding the elimination of tax benefits for investment funds that use forward contracts to convert income to capital gains for tax purposes. The budget describes this structure as “character conversion transactions”.
The pools are part of the character conversion transactions employed by TD Global High Yield Capital Class and were not available for investment by individual investors. As part of the recently announced termination of TD Global High Yield Capital Class on or about October 3, 2014, the pools will also be closed.
TD Global High Yield Pool Trust has only been available for purchase by TD Global High Yield Capital Class and has been closed to additional investments since April 12, 2013.