Dan Hallett

From Our Canadian Bureau: iUnits Distributions

Barclays Global Investors (BGI) announced this week estimated distributions for its Canadian based exchange-traded funds (ETFs), known as iUnits. Unitholders of record as of June 27, 2001 will receive the distribution on June 28.

iUnits Fund TSE Ticker Per Unit Distribution 6/19/2001 NAV Distribution (% of NAV) Distribution Frequency S&P/TSE 60 XIU $0.18 $44.37 0.42% Quarterly S&P/TSE 60 Capped XIC $0.20 $49.06 0.40% Quarterly S&P/TSE Canadian MidCap XMD $0.05 $47.88 0.10% Quarterly S&P/TSE Canadian Gold XGD $0.01 $32.09 0.03% Quarterly S&P/TSE Canadian Financial XFN $0.07 $27.31 0.25% Quarterly Government of Canada 5-year Bond XGV $0.92 $26.85 3.44% Semi-Annually Government of Canada 10-year Bond XGX $0.79 $25.53 3.11% Semiannually Source: Barclays Global Investors All iUnits distribute capital gains, if any, once annually at year's end. All equity iUnits pay dividends quarterly, while bond iUnits distribute interest semi-annually. Hence, the distributions noted in the above table are for income only.

For Canadian tax purposes, exchange-traded funds are treated the same as other pooled investment funds or "flow-through entities." Remember that commissions incurred to buy or sell iUnits are added to the investor's adjusted cost base (ACB), and are not deductible in the year paid. Click here for more information on how income tax affects Canadians holding investment funds.

Dan Hallett, B.Comm., CFP is Senior Investment Analyst with Sterling Mutuals Inc. Sterling Mutuals Inc. is registered as a Canadian mutual fund dealer in Ontario, British Columbia and Manitoba.