TORONTO, June 4, 2019 /CNW/ - Scotia Global Asset Management today announced a non-cash distribution for the Scotia Strategic Fixed Income ETF Portfolio listed on the TSX. The non-cash distribution, as presented in the table below, will be made to all securityholders of record as at May 31, 2019, payable on June 7, 2019.
The portfolio was considered a "financial institution" for purposes of the "mark-to-market" rules contained in the Income Tax Act (Canada). The portfolio ceased to be a financial institution when not more than 50% of the portfolio was held by one or more financial institutions which resulted in a deemed year-end for tax purposes. Accordingly, the portfolio is required to distribute the net income earned and arising from the realization of gains on mark-to-market property held by the portfolio at such time to securityholders.
The distribution will be paid in the form of additional units of the portfolio. 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 portfolio will increase. This non-cash distribution does not include the regular monthly cash distributions paid by the portfolio.
The tax characteristics of the distributions will be reported to CDS Clearing and Depository Services Inc. in early 2020. Securityholders can contact their brokerage firm for this information.
The non-cash distribution amount per unit is:
Scotia Strategic ETF Portfolio name
Scotia Strategic Fixed Income ETF Portfolio
For more information on the Scotia Strategic ETF Portfolios, please visit scotiabank.com/ETF.
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.
Scotiabank is Canada's international bank and a leading financial services provider in the Americas. We are dedicated to helping our more than 25 million customers become better off 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 more than 99,000 employees and assets of over $1 trillion (as at April 30, 2019), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankViews.