One major Canadian player is winding up seven of its funds in an effort to create efficiencies by merging
TD Asset Management (TDAM), a member of TD Bank Group, and the manager of TD Funds and TD Managed Assets Program Portfolios, will be making significant changes to several of its mutual funds, including discontinuing five.
Between now and April 2016, changes will slowly be made as TDAM begins to streamline by merging seven of the mutual funds to larger bodies and terminating five of.
Although the changes will be subject to the approval of security holders, they have so far been deemed fair and reasonable by an independent review committee.
TD Canadian T-Bill Fund and TD Japanese Index Fund are among the five funds that could be discontinued. As of December 1, the five to-be-discontinued funds will no longer receive investments.
The seven funds to be merged cover areas such as energy, precious metals and Latin American growth. The TD Canadian Blue Chip Equity Fund will be integrated into TD Canadian Equity with other funds merging into the TD Resource Fund and TD Short Term Bond Fund.
Once fund changes receive approval from security holders, those affected by any discontinued will receive units of the equivalent series of the continuing fund, on a dollar-for-dollar and tax-deferred basis.
However, until that time, security holders are still able to redeem or switch their holdings in the funds and will not be required to pay any redemption fees, sales charges or other fees associated with the discontinuing funds.
Further changes to TD funds include an investment strategy alteration of the TD Resource fund, as of November 16, so that the fund may have more flexibility to invest its assets in securities anywhere in the world.
TDAM currently manages retail mutual fund assets on behalf of more than 1.9 million investors and claims to offer one of the most broadly diversified fund families in Canada.
Between now and April 2016, changes will slowly be made as TDAM begins to streamline by merging seven of the mutual funds to larger bodies and terminating five of.
Although the changes will be subject to the approval of security holders, they have so far been deemed fair and reasonable by an independent review committee.
TD Canadian T-Bill Fund and TD Japanese Index Fund are among the five funds that could be discontinued. As of December 1, the five to-be-discontinued funds will no longer receive investments.
The seven funds to be merged cover areas such as energy, precious metals and Latin American growth. The TD Canadian Blue Chip Equity Fund will be integrated into TD Canadian Equity with other funds merging into the TD Resource Fund and TD Short Term Bond Fund.
Once fund changes receive approval from security holders, those affected by any discontinued will receive units of the equivalent series of the continuing fund, on a dollar-for-dollar and tax-deferred basis.
However, until that time, security holders are still able to redeem or switch their holdings in the funds and will not be required to pay any redemption fees, sales charges or other fees associated with the discontinuing funds.
Further changes to TD funds include an investment strategy alteration of the TD Resource fund, as of November 16, so that the fund may have more flexibility to invest its assets in securities anywhere in the world.
TDAM currently manages retail mutual fund assets on behalf of more than 1.9 million investors and claims to offer one of the most broadly diversified fund families in Canada.
