Toronto-Dominion Bank's investment management unit said it plans to terminate three mutual funds, citing reduced investment opportunities and falling client demand due to changes to the tax-treatment of income trust securities.
Effective May 29, the funds -- TD Income Trust Capital Yield Fund, TD Private Income Trust Fund and TD Income Trust Pool -- will cease offering units for purchase and will be terminated on or about July 31, the company said in a statement.
TD Asset Management said unit holders may redeem or switch their holdings in the funds for settlement on or prior to the termination date.
The company said it will sell each fund's holdings at fair market value and distribute the net assets to remaining unit holders by July 31.
No fees or charges will be applied to unit holders upon redemption of their units or the termination of the funds, it added.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Anil D'Silva)