Taxation of liquidating distribution of Marrett High Yield Strategies.

[rukawa]

I own shares of MHY.UN (Marret High Yield Fund Strategies). This company announced several distributions as follows:

 

https://webfiles.thecse.com/MHY_Distribution_Announcement_Dec_2021_FINAL.pdf?2XyIz5vWnFSPsoFQN4Sq_c2cvareJ3AU

 

Quote

Marret Asset Management Inc. (“Marret”) announces that Marret High Yield Strategies Fund (“MHY”) (CSE: MHY.UN) will pay a distribution in the amount of $0.0952 per unit on December 31, 2021 to unitholders of record on December 23, 2021. This distribution is in connection with the termination and continued liquidation of the Private Portfolios.

 

How is this viewed by the CRA for tax purposes. Is this a dividend or return of capital? If its a return of capital I'm assuming I reduce by acb to zero until I register a capital gain. I'm not sure what MHY.UN is. It calls it itself a fund but its exchange traded. I'm assuming I treat as mutual fund which is return capital back to unit holders. But I'm confused. 

[MikeL]

found this file for you, on page 26, it has some tax info, check it out.

2203251228560223.pdf

[rukawa]

Thanks. Very helpful.

[rukawa]

Where did you find it?

 

EDIT: Nevermind...found it at sedar. Surprised this isn't on their investor website.

Edited April 26, 2022 by rukawa