Understanding the Maturity of TD's Bond Funds and ETFs

Author: Caleb Price Updated: 09-10-2025 02:18 PM

Overview of Maturing Bond Funds and ETFs

TD Asset Management Inc. (NASDAQ: TD) has made significant announcements regarding the upcoming maturity of the TD Target Maturity Bond ETFs and the Target Maturity Bond Funds. These financial products are designed uniquely, having a specified maturity date, unlike traditional funds which continue indefinitely. This article will delve into the details of the maturing funds, providing essential insights for current and prospective investors.

Details of Maturing Funds

Maturing ETFs

The maturing ETFs include:

TD Target 2025 Investment Grade Bond ETF (Ticker: TBCE)
TD Target 2025 U.S. Investment Grade Bond ETF (Ticker: TBUE.U)

These ETFs are structured to mature on or about November 21, 2025, aligning with the strategic investment plans of TDAM. When they reach maturity, the funds will be terminated, and unitholders will receive their net assets back based on their shares in the ETFs.

Maturing Mutual Funds

The following mutual funds are also scheduled for maturity:

TD Target 2025 Investment Grade Bond Fund
TD Target 2025 U.S. Investment Grade Bond Fund

Similar to their ETF counterparts, the mutual funds have a maturity date indicated in their prospectus, ensuring transparency for all investors.

Investment Strategy and Terms

From today, these funds will stop accepting additional purchases, including those through pre-authorized plans. Current unitholders can redeem or switch their holdings until market close on November 20, 2025, without incurring additional fees. This allows for a smooth transition as the funds approach their termination date.

Liquidation Process

As the maturity date approaches, TDAM will liquidate the assets of these funds to ensure that all obligations are met. They aim to convert the assets primarily into cash before distributing the net assets to unitholders on a pro-rata basis based on each fund's net asset value.

Conclusion and Future Updates

TD Asset Management will issue further communications detailing these changes as the maturity near. Unitholders will receive comprehensive updates at least 60 days before the maturity date, providing clarity and direction for their investments.

Frequently Asked Questions

1. What is the maturity date for the TD Maturity Funds?

The maturity date for the TD Target Maturity Bond ETFs and Mutual Funds is expected to be on or around November 21, 2025.

2. How can unitholders redeem their investments before maturity?

Unitholders can redeem or switch their holdings until market close on November 20, 2025, without incurring additional fees.

3. Will there be any fees associated with these transactions?

No, TD Asset Management will not impose short-term trading fees, sales charges, or other transaction fees related to the Maturing Mutual Funds.

4. How will the funds' assets be managed as they approach maturity?

TDAM plans to liquidate and convert fund assets to cash, ensuring that all liabilities are settled before distributing net assets to unitholders.

5. Where can I find more information on TD Asset Management and their funds?

For detailed information, unitholders can contact TDAM Client Services or visit their official site at TDAssetManagement.com.

About The Author

Hey there I'm Caleb Price, a writer and financial specialist who loves to assist others in understanding the financial world. Having years of practical experience and a solid background in finance, my area of expertise is converting difficult financial ideas into useful, doable insights for my blog and publications. My goal with my writing is to give readers the information and assurance they need to successfully negotiate their financial journeys.

My ability to interact with a wide range of people—from novices starting their investing journey to seasoned investors looking for new approaches—has come from contributing to several financial blogs. Making money approachable and understandable is my goal; this will enable you to make wise choices and realize your financial objectives. We appreciate you coming along on this path to success and financial empowerment on Investors Hangout.

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