An anonymous trustee reports
DYNAMIC FUNDS ANNOUNCES NON-CASH DISTRIBUTION FOR DYNAMIC ACTIVE ETF
Dynamic Funds has declared a non-cash distribution for Dynamic Active U.S. Equity ETF listed on the Toronto Stock Exchange. The non-cash distribution, as presented in the attached table, will be made to all securityholders of record as at Nov. 27, 2023, payable on Nov. 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 per cent 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
as shown in the attached table.
Dynamic Active ETF name Ticker symbol (TSX) Non-cash distribution per unit ($)
Dynamic Active U.S. Equity ETF DXUS 1.46336
About Dynamic Funds
Dynamic Funds is a division of 1832 Asset Management LP, which offers a range of wealth management solutions, including mutual funds, actively managed exchange-traded funds and investment solutions for private clients, institutional clients and managed asset programs. 1832 Asset Management LP 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 licence by, and is a division of, 1832 Asset Management LP.
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