TORONTO, March 28, 2022 /CNW/ – TD Asset Management Inc. (“TDAM”) today announced its intention to consolidate the units of TD Canadian Long Federal Bond ETF (TCLB) and U.S. Treasury Bond ETF into TD Long Term Equity (TULB) (each, a “TD ETF” and collectively, the “TD ETFs”).
Groupings of units
After market close on Thursday, March 31, 2022, TDAM will consolidate on the Toronto Stock Exchange (the “TSX”) the Units of each TD ETF at the ratio of 1 new Unit for every 6 existing Units. TD ETFs will begin trading on a post-consolidated basis on Friday, April 1, 2022the effective date of the unit combinations.
During a unit consolidation, the net asset value per unit is increased by the same ratio as the unit consolidation so that the unit consolidation has no impact on the value of the unitholder’s total position in units. . The unit cost for the unitholder is also increased by the same ratio as the consolidation of the units, although their total cost remains unchanged.
No fractional unit will be issued. Where the consolidation results in a fractional Unit, the post-consolidation number of Units will be rounded down to the nearest whole unit and the cash value of the fractional Unit will be paid to the Unitholder of the TD ETF.
TDAM reserves the right to cancel or modify the above corporate action as it deems appropriate prior to the effective date of Friday, April 1, 2022.
Unitholders of each TD ETF do not need to take any action to effect the unit consolidations. Unitholders will have their brokerage accounts automatically updated to reflect unit consolidations. A Unitholder’s broker may take several days to reflect consolidations of Units in the Unitholder’s account (the “Settlement Period”). However, the Unitholder is still able to trade the securities of the Consolidated TD ETFs during this period. If desired, TDAM recommends that Unitholders contact their broker by telephone during the Settlement Period to trade the post-consolidation Units of the TD ETFs.
For more information on TD ETFs, visit TDAssetManagement.com.
Commissions, management fees and expenses all may be associated with investing in exchange-traded funds (ETFs). Please read the prospectus and ETF Facts before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. ETF shares are bought and sold at market price on the stock exchange and brokerage commissions will reduce returns.
TD ETFs are managed by TD Asset Management Inc., a wholly owned subsidiary of The Toronto-Dominion Bank.
®The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
About TD Asset Management Inc.
TD Asset Management Inc. (“TDAM”), a member of TD Bank Group, is a North American investment management company. TDAM offers investment solutions to corporations, pension funds, endowments, foundations and individual investors. Additionally, TDAM manages assets on behalf of nearly 2 million retail investors and offers a broadly diversified range of investment solutions, including mutual funds, exchange-traded funds, professionally managed portfolios and corporate class funds. Asset Management Firms at TD Management $453 billion in assets. Aggregate statistics are from December 31, 2021 for TDAM and Epoch Investment Partners, Inc. TDAM operates in Canada and Epoch Investment Partners, Inc. operates in United States. Both entities are affiliates and wholly owned subsidiaries of The Toronto-Dominion Bank.
SOURCE TD Asset Management Inc.
For further information: Sarah Sartaj, TD Bank Group, [email protected]