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Scotia Global Asset Management announces non-cash distribution for the Scotia Index Tracker ETFs

TORONTO, Jan. 22, 2021 /CNW/ - Scotia Global Asset Management today announced a non-cash distribution for certain Scotia Index Tracker ETFs listed on the NEO Exchange. The non-cash distribution, as presented in the table below, will be made to all securityholders of record as at January 29, 2021 payable on February 5, 2021.

Each of the ETFs was considered a "financial institution" for purposes of the "mark-to-market" rules contained in the Income Tax Act (Canada). Each ETF ceased to be a financial institution when not more than 50% of the ETF was held by one or more financial institutions, which resulted in a deemed year-end for tax purposes. Accordingly, each ETF is required to distribute the net income earned and arising from the realization of gains on mark-to-market property held by the ETF at such time to securityholders.  

The distribution will be paid in the form of additional units of the respective ETF. The additional units will be immediately consolidated so that the number of units outstanding following the distribution will equal the number of units outstanding prior to the distribution. Accordingly, each securityholder's aggregate adjusted cost base of units of the ETF will increase. This non-cash distribution does not include any regular monthly cash distributions that may be payable by these ETFs.

The tax characteristics of the distributions will be reported to CDS Clearing and Depository Services Inc. in early 2022. Securityholders can contact their brokerage firm for this information.

The non-cash distributions amount per unit are:

Scotia Index Tracker ETF name

Ticker symbol
(NEO)

Non-cash distribution
per unit ($)

Scotia Canadian Bond Index ETF Tracker

SITB

0.000

Scotia Canadian Large Cap Equity Index Tracker ETF

SITC

0.058

Scotia International Equity Index Tracker ETF

SITI

0.614

For more information on the Scotia Index Tracker ETFs, please visit here.

Commissions, management fees and expenses all may be associated with investments in exchange-traded funds (ETFs). Please read the prospectus before investing. The securities held by the ETFs can change at any time without notice. Investments in ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

About Scotia Global Asset Management
Scotia Global Asset Management is a business name used by 1832 Asset Management L.P., a limited partnership, the general partner of which is wholly owned by Scotiabank. Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, and investment solutions for private clients, institutional clients and managed asset programs.

About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of over 90,000 employees and assets of approximately $1.1 trillion (as at October 31, 2020), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.

SOURCE Scotiabank

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