Dynamic Funds announces completion of fund changes, and July 2025 cash distributions for Dynamic Active ETFs and ETF series units
MWN-AI** Summary
Dynamic Funds, managed by 1832 Asset Management L.P., has officially completed significant changes to its fund offerings, including the termination of the Dynamic Active Energy Evolution ETF and the merger of the Dynamic Active Retirement Income ETF into the Dynamic Retirement Income Fund. The Dynamic Active Energy Evolution ETF was delisted from the Toronto Stock Exchange (TSX) on July 15, 2025, with termination effects effective July 18, 2025. Unitholders will receive cash payments from the final liquidation of assets on or around July 23, 2025, totaling $18.83448 per unit, which includes a final distribution of $0.04208.
As for the merger, the Dynamic Active Retirement Income ETF was absorbed into the Dynamic Retirement Income Fund on the same date. Unitholders saw their units exchanged on a one-for-one basis, facilitating a smooth transition as both funds maintain their investment objectives and management teams while now offering both mutual fund series units and ETF units under common ticker symbols on the TSX.
In addition to these changes, Dynamic Funds announced the cash distributions for July 2025 for its active ETFs and ETF Units. Unitholders of record on July 28, 2025 will receive monthly cash distributions on July 31, 2025, across several funds including the Dynamic Active Bond ETF (DXBB) with $0.070 per unit and the Dynamic Active U.S. Investment Grade Corporate Bond ETF (DXBU) at $0.101 per unit.
Overall, these actions reflect Dynamic Funds’ commitment to managing its products responsively while providing ongoing value to its investment community.
MWN-AI** Analysis
Dynamic Funds' recent announcements regarding the completion of fund changes, such as the termination of the Dynamic Active Energy Evolution ETF and the merger of the Dynamic Active Retirement Income ETF into the Dynamic Retirement Income Fund, suggest a strategic pivot aimed at optimizing their offerings in response to market demands. Investors should carefully assess how these changes will affect their portfolios and overall investment strategy.
The termination of the Energy ETF, while potentially disappointing for some, highlights the fund manager’s proactive approach to reallocating resources towards more sustainable and profitable options. The merger consolidates assets and refines the fund structure, potentially enhancing liquidity and performance for investors in the Continuing Fund. With no action required from unitholders, the transition appears seamless, but investors should evaluate the underlying strategies of the merged entities to ensure alignment with their financial goals.
The recent cash distribution announcements for July 2025 for various Dynamic Active ETFs are an encouraging sign for income-focused investors. Monthly distributions ranging from CAD 0.050 to CAD 0.162 across different ETF options provide a steady income stream, making these funds attractive for those looking to enhance their cash flow. The Enhanced Yield Covered Options ETF, in particular, stands out with a higher distribution rate, warranting further investigation into its strategy and risk profile.
Investors should continue to monitor Dynamic Funds' performance post-merger and distributions closely. Given the volatile market conditions, this could be an opportune moment to reassess asset allocation and ensure diversification across their investment portfolios. In summary, with Dynamic Funds' strategic shifts, it may be prudent for investors to evaluate their investment choices to align with both current market trends and long-term financial objectives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
TORONTO , July 21, 2025 /CNW/ - 1832 Asset Management L.P., as manager of Dynamic Funds (the " Manager "), today announced it has terminated Dynamic Active Energy Evolution ETF and completed the merger of Dynamic Active Retirement Income ETF into Dynamic Retirement Income Fund.
Termination of Dynamic Active Energy Evolution ETF
On March 18, 2025 , the Manager announced its intention to terminate Dynamic Active Energy Evolution ETF. The ETF was delisted from the Toronto Stock Exchange (" TSX ") following market close on July 15, 2025 , and subsequently terminated effective July 18, 2025 (the " Termination Date ").
Unitholders of record on the Termination Date will receive final payments from the liquidation of the assets of the ETF, net of all liabilities and expenses, on or about July 23, 2025 , without any further action required by those unitholders. The proceeds will consist of the final cash distribution payable to unitholders immediately prior to the termination of the ETF and the final proceeds on the redemption of units held by unitholders.
The final distribution and proceeds per unit of the ETF are as follows:
ETF Name | Ticker Symbol (TSX) | Final Distribution per Unit () | Final Proceeds per Unit () | Total NAV per Unit () |
Dynamic Active Energy Evolution ETF | DXET | 0.04208 | 18.79240 | 18.83448 |
Merger of Dynamic Active Retirement Income ETF into Dynamic Retirement Income Fund
On March 18, 2025 , the Manager announced the merger of Dynamic Active Retirement Income ETF (the " Terminating ETF ") into Dynamic Retirement Income Fund (the " Continuing Fund "). The merger was completed after the close of business on July 18, 2025 (the " Merger Date ").
The units of the Terminating ETF were exchanged for ETF series units (" ETF Units ") of the Continuing Fund and the units of the Terminating ETF were delisted from the TSX following market close on July 18, 2025 . Today, the ETF Units of the Continuing Fund will be substitutionally listed on the TSX under the same ticker.
The Terminating ETF transferred all of its net assets to the Continuing Fund in exchange for ETF Units of the Continuing Fund having an aggregate net asset value equal to the value of the assets transferred to the Continuing Fund. Immediately thereafter, the Terminating ETF redeemed all of its outstanding units in exchange for ETF Units of the Continuing Fund on a one-for-one basis. This resulted in each unitholder of the Terminating ETF receiving the exact same number of ETF Units of the Continuing Fund it held in the Terminating ETF prior to the merger. The merger occurred on a tax-deferred basis.
Terminating ETF | Continuing Fund | Ticker Symbol(TSX) | ExchangeRatio |
Dynamic Active Retirement Income ETF | Dynamic Retirement Income Fund | DXR | 1:1 |
As a result of the merger, the Continuing Fund now offers both mutual fund series units and ETF Units. The investment objective, risk rating, and the portfolio management team for the Continuing Fund remain unchanged. No actions are required by unitholders.
Related distributions
In connection with the merger, unitholders of record in the Terminating ETF on July 18, 2025 received the final distributions shown in the following table. The final distributions were reinvested in additional units of the Terminating ETF and do not include any cash distribution amounts. The additional units were immediately consolidated so that the number of units held by each unitholder following the distribution will equal the number of units held by the unitholder prior to the distribution.
Terminating ETF | Ticker Symbol (TSX) | Final Reinvested Distribution per Unit () |
Dynamic Active Retirement Income ETF | DXR | $0.04324 |
July 2025 cash distributions for Dynamic Active ETFs and ETF Units
Dynamic Funds today announced the July 2025 cash distributions for the Dynamic Active ETFs and ETF Units of certain Dynamic Funds listed on the TSX, which pay on a monthly basis. Unitholders of record on July 28, 2025 will receive cash distributions for the respective Dynamic Active ETFs and ETF Units payable on July 31, 2025. The details of the cash distribution amounts per unit are as follows:
Dynamic Active ETF | Ticker symbol (TSX) | Cash distribution per unit () | Distribution frequency |
Dynamic Active Bond ETF | DXBB | 0.070 | Monthly |
Dynamic Active Canadian Bond ETF | DXBC | 0.065 | Monthly |
Dynamic Active Canadian Dividend ETF | DXC | 0.082 | Monthly |
Dynamic Active Corporate Bond ETF | DXCB | 0.077 | Monthly |
Dynamic Active Crossover Bond ETF | DXO | 0.091 | Monthly |
Dynamic Active Discount Bond ETF | DXDB | 0.075 | Monthly |
Dynamic Active Enhanced Yield Covered Options ETF | DXQ | 0.162 | Monthly |
Dynamic Active Global Equity Income ETF | DXGE | 0.050 | Monthly |
Dynamic Active International Dividend ETF | DXW | 0.054 | Monthly |
Dynamic Active Ultra Short Term Bond ETF | DXV | 0.053 | Monthly |
Dynamic Active Preferred Shares ETF | DXP | 0.097 | Monthly |
Dynamic Active Tactical Bond ETF | DXB | 0.064 | Monthly |
Dynamic Active U.S. Investment Grade Corporate Bond ETF | DXBU | 0.101 | Monthly |
Dynamic Credit Opportunities Fund | DXCO | 0.127 | Monthly |
Dynamic Global Fixed Income Fund | DXBG | 0.085 | Monthly |
Dynamic Retirement Income Fund | DXR | 0.087 | Monthly |
Dynamic Short Term Credit PLUS Fund | DXCP | 0.095 | Monthly |
Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments, including exchange-traded funds (ETFs). Please read the prospectus before investing. The securities held by an ETF can change at any time without notice. Mutual funds and ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. For more information about Dynamic Funds, please visit the Dynamic Funds
About Dynamic Funds
Dynamic Funds is a division of 1832 Asset Management L.P., which offers a range of wealth management solutions, including mutual funds, actively managed ETFs, liquid alternative mutual funds and investment solutions for private clients, institutions and managed asset programs. 1832 Asset Management L.P. is a limited partnership, the general partner of which is wholly owned by Scotiabank. Dynamic Funds® is a registered trademark of The Bank of Nova Scotia , used under license by 1832 Asset Management L.P
© Copyright 2025 The Bank of Nova Scotia. All rights reserved.
Website: www.dynamic.ca |Twitter: @DynamicFunds | LinkedIn: https://www.linkedin.com/company/dynamic-funds/
SOURCE Dynamic Funds
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FAQ**
How will the termination of the Dynamic Active Energy Evolution ETF (DXET:CC) impact current unitholders in terms of final payments from the liquidation of assets post-termination?
Can you clarify the tax implications for investors following the merger of the Dynamic Active Retirement Income ETF into the Dynamic Retirement Income Fund, especially for those holding units in the Dynamic Active Energy Evolution ETF (DXET:CC)?
What factors contributed to the decision to terminate the Dynamic Active Energy Evolution ETF (DXET:CC) and merge the retirement income ETF into another fund?
How does the cash distribution structure for the ongoing Dynamic Active ETFs differ from that of the terminated Dynamic Active Energy Evolution ETF (DXET:CC), particularly concerning investor expectations and payout frequency?
**MWN-AI FAQ is based on asking OpenAI questions about Dynamic Active Tactical Bond Etf (TSXC: DXB:CC).
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