TD Mutual Funds Launches New Corporate Class – Increased Tax Efficiency For Non-Registered Investments

Sep 7, 2010 | Corporate Member News

 

TD Mutual Funds also introduces Premium Series units on its leading fixed income funds and the new TD Ultra Short Term Bond Fund

Canadians looking for tax efficient investment solutions beyond RSPs and TFSAs now have a new tax-advantaged option that offers the potential for long term growth by investing in equities. Building on its track record of offering industry-leading products, TD Asset Management Inc. (TDAM), the manager of TD Mutual Funds, today introduced TD Mutual Funds Corporate Class. This investment solution currently provides access to some of TD Mutual Funds’ best-in-class equity offerings and the opportunity for long term growth coupled with potential tax advantages.

“TD Mutual Funds Corporate Class fills the gaps which can exist in the retirement plans of many Canadians who may have reached their RSP or TFSA contribution limits,” said Thomas Dyck, President TD Mutual Funds. “We listened to advisors and clients when they told us they wanted a way to grow non-registered investments in a tax-advantaged way, with no contribution or age limits. We’ve launched a solution backed by the strength of TD Mutual Funds to meet those needs.”

With TD Mutual Funds Corporate Class, investors can build their portfolios faster by deferring taxes when switching between classes, reduce taxes by receiving tax advantaged types of distributions, and manage taxes by having more flexibility in deciding when to trigger a capital gain or loss.

How TD Mutual Funds Corporate Class Works:

TD Mutual Funds Corporate Class is a mutual fund family set up within a corporate structure. Each fund is offered as a different class of shares in the corporation. Investors can switch between classes – or funds – within the corporation without any capital gains or losses being realized. The payment of taxes on any capital gains from growth of investments is deferred until money is withdrawn or redeemed from the corporation.

“Investors have the freedom to rebalance or switch between classes within the corporation to maintain their investment strategies without triggering an immediate taxable event,” said Dyck. “Moreover, the money they would have had to pay in taxes would be available for investment.”

The TD Mutual Funds Approach:

“A disciplined and methodical approach to investing, including TDAM’s world class team of portfolio managers, is the foundation of TD Mutual Funds’ success,” said Dyck. “Two examples of the best-in-class underlying funds currently offered through TD Mutual Funds Corporate Class includes the TD Dividend Growth Fund and the TD Canadian Equity Fund.”

“Canadian investors now have access to a full offering of Canadian, Foreign and U.S. Equity funds while benefiting from the tax efficiency qualities offered through TD Mutual Funds Corporate Class.”

Premium Series on Fixed Income Funds Introduced

TDAM, the manager of TD Mutual Funds, also announced today that it now offers a Premium series option on several of its leading fixed income funds. With a minimum investment of $100,000 per fund, the Premium series option offers lower management fees which can result in better returns for investors.

“With the introduction of Premium series for these funds, we are pleased to provide advisors and investors the opportunity to experience the benefits of our leading fixed income line-up, which includes our 2010 Lipper Award winning TD Corporate Bond Capital Yield Fund and TD Income Advantage Portfolio,” said Dyck.

TD Ultra Short Term Bond Fund Introduced

Also announced today by TDAM, the manager of TD Mutual Funds, is the introduction of the new TD Ultra Short Term Bond Fund. This new fund offers an investment option that seeks to deliver a higher potential return than money market funds and lower sensitivity to interest rate changes than longer term bond funds. “We are proud to introduce what we believe is a unique offering to Canadian fixed income investors with this addition to our exceptional fixed income lineup,” added Dyck.

About TD Mutual Funds

Under the TD Mutual Funds name, TDAM provides a diverse range of over 70 mutual funds and 25 professionally managed portfolios. TDAM manages retail mutual fund assets on behalf of more than 1.4 million investors and TD Mutual Funds is one of the most broadly diversified fund families in Canada. Funds are available at TD Canada Trust branches (through TD Investment Services Inc. representatives), TD Waterhouse Discount Brokerage, Financial Planning and Private Investment Advice, as well as leading investment dealers, independent brokers, advisors and financial planners. As of August 31, 2010, TDAM was the fourth largest mutual fund company in Canada, with $56.9 billion invested in TD Mutual Funds.

The Lipper Fund Awards are awarded to winning funds based on a fund’s performance over a 1-, 3-, 5- and 10-year period ending November of the respective evaluation year. The TD Corporate Bond Capital Yield Fund was the winner of the 2010 Lipper Award in the Canadian Fixed Income category over the 1-year period and TD Income Advantage Portfolio was the winner of the 2010 Lipper Fund Award in the Canadian Fixed Income Balanced category over a 5-year time frame. Lipper Inc. is a Thomson Reuters company. For greater detail on the awarding of the Lipper Awards, see http://www.lipperweb.com/.

The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community. The Thomson Reuters Awards for Excellence recognize the world’s top funds, fund management firms, sell-side firms, research analysts, and investor relations teams. The Thomson Reuters Awards for Excellence also include the Extel Survey Awards, the StarMine Analyst Awards, and the StarMine Broker Rankings. For more information, please contact [email protected] or visit excellence.thomsonreuters.com.

TD Mutual Funds Corporate Class is issued by TD Mutual Funds Corporate Class Ltd.

For further information: Steve Presant, Paradigm Public Relations, 416-203-2223 ext. 257, [email protected]; Maria Saros Leung, TD Bank Financial Group, 416-983-4093, [email protected]

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