TD Asset Management Inc., the manager
of TD Mutual Funds, today announced plans to terminate its RSP clone funds.
TD’s plan calls for each RSP clone fund’s unitholders to effectively exchange their units on a dollar-for-dollar basis for units of the relevant underlying fund, eliminating the costs of forward contracts.
“The elimination of the 30% foreign content limit is good news for Canadians investors,” says Steve Geist, president of TD Mutual Funds.
“This change will allow us to provide an even more efficient and streamlined product line-up to help meet the needs of our customers.”
The RSP clone funds affected by the plans are:
- TD U.S. Blue Chip Equity RSP Fund;
TD Asset Management has begun the process by terminating the forward contracts used by these RSP clone funds. On October 31, unitholders of each RSP clone fund will effectively exchange their units on a dollar-for-dollar basis for units of the relevant underlying fund.
Unitholders are not required to take any action as a result of this change. The effective exchange of units will be considered a disposition by each unitholder at the applicable net asset value at the time of the exchange.
For non-registered unitholders, this disposition may trigger a gain or loss for tax purposes.