ETFs will be delisted from the TSX in June
TD Asset Management Inc. (TDAM) has announced its decision to terminate six of its exchange-traded funds (ETFs), effective June 26, 2024.
The Toronto-based giant, a subsidiary of The Toronto-Dominion Bank, plans to conclude offerings for the following ETFs: TD Income Builder ETF, TD Morningstar ESG Canada Equity Index ETF, TD Morningstar ESG U.S. Equity Index ETF, TD Morningstar ESG International Equity Index ETF, TD Morningstar ESG Canada Corporate Bond Index ETF, and TD Morningstar ESG U.S. Corporate Bond Index ETF.
Beginning April 15, 2024, TDAM will halt direct subscriptions for these ETFs from authorized participants, signaling the phase-out of these financial instruments. The ETFs will be delisted from the Toronto Stock Exchange (TSX) and removed from trading after June 21, 2024, leading up to a compulsory redemption for all remaining units on the set termination date.
In anticipation of this termination, TDAM aims to convert the ETFs' holdings into cash, addressing any liabilities and obligations prior to distributing the residual net assets pro rata to unitholders based on each ETF's net asset value per unit at the termination date. An ensuing press release near the termination date will provide further specifics of this process.
This strategic move is in line with TDAM's ongoing evaluation and optimization of its product lineup, the firm said.. "It is crucial for us to consistently review our offerings and adjust in response to the changing needs of our investors and market dynamics," a TDAM representative added in a statement.
Investors holding units in the terminating ETFs will be informed about the termination steps, including a notice dispatched at least two months before the termination date.
This announcement follows closely on the heels of TDAM’s expansion in its fixed income portfolio, introducing six new actively managed ETFs, namely the TD Target Maturity Bond ETFs (TD TMB ETFs).
The TD TMB ETF series encompasses: TD Target 2025, 2026, and 2027 Investment Grade Bond ETFs (TBCE, TBCF, TBCG) targeting Canadian bonds, along with TD Target 2025, 2026, and 2027 US Investment Grade Bond ETFs (TBUE.U, TBUF.U, TBUG.U) for American bonds.
As the year 2023 closed, TDAM disclosed it managed assets totalling $437 billion.
