TD Asset Management Inc. today announced plans to streamline its mutual fund line-up by merging several funds with similar mandates.
TDAM says the mergers will increase the size and efficiency of the continuing funds, while simplifying choices for investors.
Unitholders will be asked to vote on these changes at a special meeting, scheduled for August 24 in Toronto.
“This re-organization will allow us to offer our customers a more cost efficient and streamlined fund line-up,” says Steve Geist, president of TD Mutual Funds.
“We continue to focus on the needs of our customers to ensure that we are providing the strongest possible line-up, and this proposed re-organization will further support that goal.”
The proposed mergers are as follows:
- TD Canadian Government Bond Index Fund to merge into TD Canadian Bond Index Fund;
- TD International Growth Fund to merge into TD International Equity Fund;
- TD Managed Index Income Portfolio to merge into TD Managed Index Income RSP Portfolio;
- TD Managed Index Income & Moderate Growth Portfolio to merge into TD Managed Index Income & Moderate Growth RSP Portfolio;
- TD Managed Index Balanced Growth Portfolio to merge into TD Managed Index Balanced Growth RSP Portfolio;
- TD Managed Index Aggressive Growth Portfolio to merge into TD Managed Index Aggressive Growth RSP Portfolio(*);
- TD Managed Index Maximum Equity Growth Portfolio to merge with TD Managed Index Maximum Equity Growth RSP Portfolio.
On the effective date of the mergers, the merged RSP funds will drop the term RSP. TD says this will not impact their eligibility for registered plans.
Once approved, the mergers will take
effect on October 7. Each unitholder’s investment in a terminating fund will be exchanged on a dollar-for-dollar basis for securities of the applicable continuing fund on a tax deferred basis. The terminating fund will then cease operation.