MONTREAL, March 18, 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 Canadian Universe Bond Index ETF (TSX:
DCU) as of February 24, 2020,
including such gains and income for the period December 31, 2019 to February 24, 2020, became payable to Unitholders
as of February 24, 2020, except to
the extent of net realized capital gains in respect of which the
tax payable by DCU would be refunded as a "capital gains
refund". Accordingly, DGAM announces the following additional
reinvested distributions of DCU.
Prior to February 24, 2020, DCU
was 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 DCU were held by one or more such
financial institutions and (ii) DCU did not qualify as a "mutual
fund trust" for purposes of the Income Tax Act (Canada). It was determined that DCU qualifies
as a "mutual fund trust" as of February 24,
2020 and ceased to be a "financial institution" as at such
date for these purposes, therefore DCU was deemed to have taxation
year-end immediately before that time. As a result,
Unitholders of record on February 24,
2020 became entitled to the reinvested distributions, which
were payable on February 24, 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 ETF 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:
|
Exchange Traded
Funds (ETF)
|
Ticker symbol
(TSX)
|
Income as
reinvested
distribution per unit ($)
|
Desjardins Canadian
Universe Bond Index ETF
|
DCU
|
0.6753
|
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 fifth largest in the world,
with assets of $313.0 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