MONTREAL, Oct. 30, 2020 /CNW Telbec/ - Desjardins Global
Asset Management Inc. (DGAM), acting as manager and portfolio
advisor of the Desjardins Exchange Traded Funds (ETFs), announces
that all previously undistributed net realized capital gains and
net income of Desjardins 1-5 year Laddered Canadian Corporate Bond
Index ETF (TSX : DCC) and Desjardins RI USA - Low
CO2 Index ETF (TSX : DRMU) as of September 30, including such gains and income for
the period December 31, 2019 to
September 30, 2020, became payable to
Unitholders as of September 30, 2020,
except to the extent of net realized capital gains in respect of
which the tax payable by DCC and DRMU would be refunded as a
"capital gains refund". Accordingly, DGAM announces the following
additional reinvested distributions of DCC and DRMU.
Prior to September 30, 2020, DCC
and DRMU were considered a "financial institution" for purposes of
the "mark-to-market" rules in the Income Tax Act
(Canada), since (i) more than 50%
of the fair market value of all interests in each ETF were held by
one or more such financial institutions and (ii) DCC and DRMU did
not qualify as "mutual fund trusts" for purposes of the Income
Tax Act (Canada). It was
determined that DCC and DRMU qualified as "mutual fund trusts" as
of September 30, 2020 and ceased to
be "financial institutions" as at such date for these purposes,
therefore they were deemed to have taxation year-end immediately
before that time. As a result, Unitholders of record on
September 30, 2020 became entitled to
the reinvested distributions, which were payable on September 30, 2020. These distributions were not
paid in cash and instead were automatically reinvested in
additional units. Those additional units were immediately
consolidated, so the number of units held by each investor, except
in the case of a non-resident Unitholder to the extent tax was
required to be withheld in respect of the distribution, did not
change as a result of the distribution. In addition, the net asset
value of the ETFs did not change as a result of the distribution.
Investors holding their units outside registered plans will have
taxable amounts to report and an increase in the adjusted cost base
of their units.
Below is the reinvested distributions paid per unit for each
ETF:
Exchange Traded
Funds (ETF)
|
Ticker symbol
(TSX)
|
Income as
reinvested
distribution per unit ($)
|
Desjardins 1-5 year
Laddered Canadian Corporate Bond
Index ETF
|
DCC
|
0.4454
|
Desjardins RI USA -
Low CO2 Index ETF
|
DRMU
|
3.0228
|
To obtain additional information about the Desjardins ETFs,
visit the manager's website
at www.desjardinsETF.com.
About Desjardins Group
Desjardins Group is the
leading cooperative financial group in Canada and the sixth largest in the world,
with assets of $349.9 billion.
It has been rated one of Canada's
Top 100 Employers by Mediacorp. To meet the diverse needs of its
members and clients, Desjardins offers a full range of products and
services to individuals and businesses through its extensive
distribution network, online platforms and subsidiaries across
Canada. Ranked among the World's
Strongest Banks according to The Banker magazine, Desjardins
has one of the highest capital ratios and credit ratings in the
industry.
The Desjardins Exchange Traded Funds are not guaranteed,
their value fluctuates frequently and their past performance is not
indicative of their future returns. Commissions, management fees
and expenses all may be associated with an investment in exchange
traded funds. Please read the prospectus before investing.
Desjardins Global Asset Management Inc. is the manager and
portfolio manager of the Desjardins Exchange Traded Funds. The
Desjardins Exchange Traded Funds are offered by registered
dealers.
SOURCE Desjardins Group