TORONTO, March 27, 2024 /CNW/ - Mackenzie Investments today announced a notional non-cash reinvested distribution (a "Notional Distribution") for Mackenzie All-Equity Allocation ETF (the "ETF").
A Notional Distribution occurs when a distribution is made in the form of units, which are then immediately consolidated with the units held prior to the distribution, so that the total number of units held after the distribution is identical to the number of units held prior to the distribution.
The Notional Distribution has been made to all unitholders of record of the ETF as indicated in the table below:
Mackenzie ETF |
Ticker |
Record |
Non-Cash |
Mackenzie All- |
MEQT |
February |
1.31968 |
As at the record date indicated above, the ETF did not qualify as a mutual fund trust under the Income Tax Act (Canada) (the "Tax Act") and more than 50% of its market value was held by one or more financial institutions, as such term is defined in the Tax Act. It was determined that as at the record date the ETF was considered a financial institution for purposes of the "mark-to-market" rules contained in the Tax Act.
The Tax Act contains special rules for deeming a tax year end when a taxpayer becomes or ceases to be a financial institution and for determining the income of financial institutions. This includes, but is not limited to, the realization and recognition on income account of all unrealized gains or losses on mark-to-market property held by the financial institution at the end of any given tax year when the "mark-to-market" rules apply. On the date following the record date indicated above, the ETF ceased to be a financial institution, as such term is defined under the Tax Act. As a result of this change of status, the ETF is required to recognize a deemed year-end for tax purposes and distribute any net income and net realized capital gains earned or realized as applicable by the ETF up until the deemed year end (reflected by the record date indicated above).
In early 2025, the tax characteristics of all distributions for 2024 for the ETF will be reported to brokers via the Canadian Depository for Securities (CDS).
Further information about Mackenzie ETFs can be found at mackenzieinvestments.com/etf.
Commissions, management fees, brokerage fees and expenses all may be associated with Exchange Traded Funds. Please read the prospectus before investing. Exchange Traded Funds are not guaranteed, their values change frequently and past performance may not be repeated.
The payment of distributions is not guaranteed and may fluctuate. The payment of distributions should not be confused with an Exchange Traded Fund's performance, rate of return or yield. If distributions paid by the Exchange Traded Fund are greater than the performance of the Exchange Traded Fund, your original investment will shrink. Distributions paid as a result of capital gains realized by an Exchange Traded Fund, and income and dividends earned by an Exchange Traded Fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero.
About Mackenzie Investments
Mackenzie Investments ("Mackenzie") is a leading investment management firm with $200.6 billion in assets under management as of February 29, 2024. Mackenzie provides investment solutions and related services to more than one million retail and institutional clients through multiple distribution channels. Founded in 1967, Mackenzie is a global asset manager with offices across Canada as well as in Boston, Dublin, London, Hong Kong and Beijing. Mackenzie is a member of IGM Financial Inc. (TSX: IGM), one of Canada's premier financial services companies with approximately $247 billion in total assets under management and advisement as of February 29, 2024. For more information, visit mackenzieinvestments.com.
SOURCE Mackenzie Financial Corporation
Hilary Bassett, 416-951-7558, [email protected]
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