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Press release from Business Wire

Vanguard Announces Changes to Cash Distribution Frequency for the Vanguard ETFs

Wednesday, February 29, 2012

Vanguard Announces Changes to Cash Distribution Frequency for the Vanguard ETFs09:00 EST Wednesday, February 29, 2012 TORONTO (Business Wire) -- Vanguard Investments Canada Inc. today announced that effective September 2012, the cash distributions of certain Vanguard exchange-traded funds (ETFs) listed on Toronto Stock Exchange (TSX) will be paid out quarterly instead of annually. Details of the changes are as follows:               Vanguard ETF   TSXTickerSymbol   Current CashDistributionFrequency   Cash DistributionFrequency effectiveSeptember 2012 Vanguard MSCI EAFE Index ETF (CAD-hedged)   VEF   Annual   Quarterly Vanguard MSCI Emerging Markets Index ETF   VEE   Annual   Quarterly       “The switch to quarterly distributions from annual distributions for the funds is intended to reduce the market impact—and associated transaction costs—to the funds that may result from paying distributions annually,” says Atul Tiwari, Managing Director of Vanguard Investments Canada Inc. The September cash distribution payment will include income from the first through third quarters of 2012. The fourth quarter cash distribution will be paid in December 2012. The funds will hold dividend payments on foreign currency appreciation (if any) and unrealized gains on passive foreign investment companies (if any) until the December dividend payment. The funds' objectives and investment strategies have not changed as a result of the dividend frequency change. To learn more about the TSX-listed Vanguard ETFs, please visit www.vanguardcanada.ca About Vanguard Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. Vanguard is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages CAD $1.8 trillion in global assets. Vanguard offers more than 170 funds to U.S. investors and more than 70 additional funds in non-U.S. markets. For more information, please visit www.vanguardcanada.ca. All asset figures are as of December 31, 2011 unless otherwise noted. Commissions, management fees, and expenses all may be associated with the Vanguard ETFs. This offering is only made by prospectus.The prospectus contains important detailed information about the securities being offered.Copies are available from Vanguard Investments Canada Inc. at www.vanguardcanada.ca.Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. The Vanguard ETFs are not sponsored, endorsed, sold or promoted by Barclays Capital. Barclays Capital does not make any representation regarding the advisability of the Vanguard ETFs or the advisability of investing in securities generally. Barclays Capital's only relationship with Vanguard is the licensing of the indices which are determined, composed and calculated by Barclays Capital without regard to Vanguard or the Vanguard ETFs. Barclays Capital has no obligation to take the needs of Vanguard or the owners of the Vanguard ETFs into consideration in determining, composing or calculating the indices. Barclays Capital has no obligation or liability in connection with administration, marketing or trading of the Vanguard ETFs. The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. The prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds. For more information, contact Vanguard Public Relations at 610-669-5002