Desjardins announces reinvested distributions for a Desjardins ETF

MONTREAL, April 23, 2021 /CNW Telbec/ - Desjardins Global Asset Management Inc. (DGAM), acting as manager and portfolio advisor of the Desjardins Exchange Traded Funds (ETFs), announces that all previously undistributed net realized capital gains and net income of Desjardins RI Canada Multifactor - Low CO2 ETF (TSX: DRFC) as of March 31, 2021, including such gains and income for the period December 31, 2020 to March 31, 2021, became payable to Unitholders as of March 31, 2021, except to the extent of net realized capital gains in respect of which the tax payable by DRFC would be refunded as a "capital gains refund".  Accordingly, DGAM announces the following additional reinvested distributions of DRFC.

Desjardins logo (CNW Group/Desjardins Group)

Prior to March 31, 2021, DRFC was considered a "financial institution" for purposes of the "mark-to-market" rules in the Income Tax Act (Canada), since (i) more than 50% of the fair market value of all interests in DRFC were held by one or more such financial institutions and (ii) DRFC did not qualify as a "mutual fund trust" for purposes of the Income Tax Act (Canada). It was determined that DRFC qualifies as a "mutual fund trust" as of March 31, 2021 and ceased to be a "financial institution" as at such date for these purposes, therefore DRFC was deemed to have taxation year-end immediately before that time.  As a result, Unitholders of record on March 31, 2021 became entitled to the reinvested distributions, which were payable on March 31, 2021. These distributions were not paid in cash and instead were automatically reinvested in additional units. Those additional units were immediately consolidated, so the number of units held by each investor, except in the case of a non-resident Unitholder to the extent tax was required to be withheld in respect of the distribution, did not change as a result of the distribution. In addition, the net asset value of the ETF did not change as a result of the distribution. Investors holding their units outside registered plans will have taxable amounts to report and an increase in the adjusted cost base of their units.

Below is the reinvested distributions paid per unit:

Exchange Traded Funds (ETF)

Ticker symbol
(TSX)

Income as reinvested
distribution per unit ($)

Desjardins RI Canada Multifactor - Low CO2 ETF

DRFC

1.7612

To obtain additional information about the Desjardins ETFs, visit the manager's website at www.desjardinsETF.com.

About Desjardins Group
Desjardins Group is the largest cooperative financial group in North America and the fifth largest cooperative financial group in the world, with assets of $362.0 billion. In 2020 it was ranked as one of the world's Top 100 Employers by Forbes magazine. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the world's strongest banks according to The Banker magazine, Desjardins has one of the highest capital ratios and credit ratings in the industry.

The Desjardins Exchange Traded Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, management fees and expenses all may be associated with an investment in exchange traded funds. Please read the prospectus before investing. Desjardins Global Asset Management Inc. is the manager and portfolio manager of the Desjardins Exchange Traded Funds. The Desjardins Exchange Traded Funds are offered by registered dealers.

SOURCE Desjardins Group

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