TD Asset Management Inc. plans to terminate three mutual funds, the company said Friday.

Effective May 29, the funds will cease offering units for purchase and will be terminated on July 31.

“The decision to terminate the funds is due to reduced investment opportunities and decreased client demand resulting from changes to the tax-treatment of income trust securities,” TD says.

The funds that will be terminated are:

• TD Income Trust Capital Yield Fund;
• TD Private Income Trust Fund; and
• TD Income Trust Pool.

Unitholders may redeem or switch their holdings in the funds for settlement on or prior to the termination date.

TD says will sell each fund’s holdings at fair market value, determine distributions, and on July 31 distribute the net assets to remaining unitholders.

No fees or charges will be applied to unitholders upon redemption of their units or the termination of the funds, it adds.

IE