Subject: DIV
Dynamic Funds announces non-cash distribution for Dynamic Active ETF
TORONTO, Nov. 20, 2023 /CNW/ - Dynamic Funds today announced a non-cash distribution for Dynamic Active U.S. Equity ETF ("the ETF") listed on the TSX Exchange. The non-cash distribution, as presented in the table below, will be made to all securityholders of record as at November 27, 2023 payable on November 30, 2023.
The ETF was considered a "financial institution" for purposes of the "mark-to-market" rules contained in the Income Tax Act (Canada). The 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, the 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 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.
The tax characteristics of the distributions will be reported to CDS Clearing and Depository Services Inc. in early 2024. Securityholders can contact their brokerage firm for this information.
The non-cash distribution amount per unit is:
Dynamic Active ETF name | Ticker symbol (TSX) | Non-cash distribution per unit ($) |
Dynamic Active U.S. Equity ETF | DXUS | 1.46336 |
For more information about these and the other Dynamic Active ETFs, please visit Dynamic.ca/ETF.
Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments, including ETFs. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
Dynamic Funds is a division of 1832 Asset Management L.P., which offers a range of wealth management solutions, including mutual funds, actively managed ETFs, and investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank. Dynamic Funds® is a registered trademark of The Bank of Nova Scotia, used under license by, and is a division of, 1832 Asset Management L.P.
© Copyright 2023 The Bank of Nova Scotia. All rights reserved.
Website: www.dynamic.ca | X (formerly Twitter):@DynamicFunds | LinkedIn: https://www.linkedin.com/company/dynamic-funds/
SOURCE Dynamic Funds
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