TD Asset Management Inc., the manager of TD Mutual Funds, has announced plans to streamline its mutual fund line-up, subject to applicable unitholder and regulatory approvals. The restructuring will simplify investment choices for unitholders and continue to ensure a high-quality fund family, says TDAM.
TDAM is proposing a reorganization that will eliminate overlap by merging Funds with similar mandates. This reorganization also includes the termination of four funds and a change to the investment objective of the TD EuroGrowth RSP Fund. “The mandate for TD EuroGrowth RSP Fund will be changed from a passive to an active management style, which utilizes the expertise of our in-house investment management team,” says TDAM.
The proposed fund mergers are as follows:
| Discontinuing Funds | Continuing Funds |
| TD Money Market Plus Fund | TD Canadian Money Market Fund |
| TD Short Term Bond Fund | TD Short Term Monthly Income Fund |
| TD Global Government Bond Fund | TD Global RSP Bond Fund |
| TD Canadian Stock Fund | TD Canadian Equity Fund |
| TD Canadian Small-Cap Equity Fund | TD Special Equity Fund |
| TD North American Equity Fund | TD U.S. Equity Fund |
| TD GlobalGrowth RSP Fund | TD Global Select RSP Fund |
| TD Global Biotechnology Fund | TD Health Sciences Fund |
| TD Global Biotechnology RSP Fund | TD Health Sciences RSP Fund |
Each of the proposed mergers will proceed in accordance with the mutual fund merger rules of the Income Tax Act, which requires that each discontinuing fund transfer its assets to a continuing fund, says TDAM. Distribution of year-to-date income and capital gains, if any, will occur for both discontinuing and continuing funds. Each unitholder’s investment in a discontinuing fund will be exchanged on a dollar-for-dollar basis for securities of the Continuing Fund on a tax- deferred basis. The discontinuing fund would then cease operation.
Effective immediately, the following funds offered in an Advisor / F Series will cease distribution of their units and will be terminated on, or about, September 6, 2002. Currently, the fixed costs of the funds are shared by a relatively small number of unitholders and TDAM is of the view that it is in the best interests of the unitholders that the funds be terminated. The terminating funds include: TD Global e-Business Fund, TD Global e-Business RSP Fund, TD Global Wireless & Telecom Fund, TD Global Wireless & Telecom RSP Fund.
Unitholders may redeem or switch their holdings in the Funds until the termination date. All sales charges and fees associated with the termination of the Funds will be borne by TDAM.