TD Asset Management Inc has received unitholder approval for the proposed changes to several funds within the TD Mutual Funds family. As part a reorganization TDAM is merging funds with similar mandates and changing the investment objective of the TD EuroGrowth RSP Fund.
Unitholders approved the changes at meeting held in Toronto on Thursday.
“We are pleased that on average, over 90% of the respondents voted in favour of the reorganization,” said Steve Geist, president, TD Mutual Funds.
Fund Mergers
The merging funds are as follows:
- TD Money Market Plus Fund to be merged intoTD Canadian Money Market Fund;
- TD Short Term Bond Fund to be merged into TD Short Term Monthly Income Fund;
- TD Global Government Bond Fund to be merged into TD Global RSP Bond Fund;
- TD Canadian Stock Fund to be merged into TD Canadian Equity Fund;
- TD Canadian Small-Cap Equity Fund to be merged into TD Special Equity Fund;
- TD North American Equity Fund to be merged into TD U.S. Equity Fund;
- TD GlobalGrowth RSP Fund to be merged intoTD Global Select RSP Fund; and
- TD Global Biotechnology RSP Fund to be merged into TD Health Sciences RSP Fund.
The mergers are expected to be implemented after the close of business on September 6.
Each of the approved 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 its respective continuing fund. Distribution of year-to-date income and capital gains, if any, will occur for both discontinuing and continuing funds with the mergers.
Investments in a discontinuing fund will be exchanged on a dollar-for-dollar basis for securities of the continuing fund on a tax-deferred basis.
Unitholders also approved the proposal to change the investment objective of the TD EuroGrowth RSP Fund, which effective the close of business on September 6 will become an RSP-clone version of the TD European Growth Fund.