# Strange distribution from XRE on Feb 11



## pwm (Jan 19, 2012)

I noticed a different type of distribution from XRE in my TDW accounts today. In both TFSAs and in my non-registered account I see two large payouts. Both are in the same amount. One is a DRIP and the other is a TXPDDV which is normally what I see. None of my accounts is set up for DRIP from XRE. For a total of 4990 units I got $6,208.08 extra distribution. My account balance reflects the extra money. I've seen "notional distributions" before, but they never resulted in a cash payout before, so this looks like just another cash distribution of some sort. I'll attach pics of what I'm seeing. (Yesterday's payout, and the Jan 31 one which is a normal one). Question: If you hold XRE do you see the same thing?

View attachment 424

View attachment 425


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## Video_Frank (Aug 2, 2013)

I hold XRE with BMoIL. I'm only seeing the normal divvies on Jan 6/14 and Jan 31/14. Nothing else.


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## pwm (Jan 19, 2012)

I manage an account at BMOIL for a relative, which has XRE in it and it also did not show any activity, however in the past I've found the BMO account often takes an extra day to show distributions that are already in my TDW accounts, so I expect to see something there tomorrow. Take a look later today or tomorrow.


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## Video_Frank (Aug 2, 2013)

Will do. I'll let you know if anything shows up.


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## CanadianCapitalist (Mar 31, 2009)

That looks like reinvested distributions. XRE made a distribution of 0.62205 per unit in 2013. This distribution will be reinvested in XRE units automatically and the number of units you hold will eventually be the same. Details here:

http://ca.ishares.com/content/strea...r_2013_12_24_en2.pdf&mimeType=application/pdf


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## pwm (Jan 19, 2012)

Thanks CC. Interesting. I have 3900 units in my non-reg account, so 3900 * 0.62205 = $2426. I understand that would account for the annual distribution which you pointed out , but I see that number twice for a total distribution of $4852. My account balance went up by $4852.


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## pwm (Jan 19, 2012)

Exactly the same thing happened in both TFSAs. (Different numbers of course, but same transactions).


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## CanadianCapitalist (Mar 31, 2009)

It is strange that your cash balance went up... Perhaps, it will be rectify itself in a day or two?


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## pwm (Jan 19, 2012)

Yes, I'm thinking this might be a mistake. I'll be interested in seeing the BMO account activity.


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## Squash500 (May 16, 2009)

pwm said:


> I noticed a different type of distribution from XRE in my TDW accounts today. In both TFSAs and in my non-registered account I see two large payouts. Both are in the same amount. One is a DRIP and the other is a TXPDDV which is normally what I see. None of my accounts is set up for DRIP from XRE. For a total of 4990 units I got $6,208.08 extra distribution. My account balance reflects the extra money. I've seen "notional distributions" before, but they never resulted in a cash payout before, so this looks like just another cash distribution of some sort. I'll attach pics of what I'm seeing. (Yesterday's payout, and the Jan 31 one which is a normal one). Question: If you hold XRE do you see the same thing?
> 
> View attachment 424
> 
> View attachment 425


 I noticed the same thing in my accounts. TDDI acknowledged that they made a mistake with the XRE. They should have everything corrected by the end of the day.

It is a re-invested distribution that should have cancelled each other out. Example....Your account should have been $6208.08- $6208.08=0.

I believe the problem is just with the XRE. XDV (for example) is done correctly. IMHO TDDI better get this sorted out quickly before their clients spend the extra cash that was incorrectly credited to their XRE holdings.


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## pwm (Jan 19, 2012)

Yes, too bad I couldn't keep the money!


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## CPA Candidate (Dec 15, 2013)

Do reinvested distributions effectively increase the NAV of each existing ETF unit? I do not understand much about how ETFs are structured.


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## Squash500 (May 16, 2009)

pwm said:


> Yes, too bad I couldn't keep the money!


 Pwm .....my accounts are now back to normal--LOL. I knew TDDI would rush this through.


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## Squash500 (May 16, 2009)

CPA Candidate said:


> Do reinvested distributions effectively increase the NAV of each existing ETF unit? I do not understand much about how ETFs are structured.


 From what I understand....these reinvested distributions increase the ACB or book value of the ETF. So when you go to sell the ETF you won't have to pay as much capital gains tax as you normally would have to. The NAV of the ETF unit is not affected at all.

However you have to pay tax on this reinvested distribution on your 2013 tax return even though you didn't receive any extra units or cash. It's like you pay tax now yet save on your tax bill at a later date. In 2013, XRE and XDV were the two ETFS that seem to be affected the most. The XRE's re-invested distribution was so high because H and R bought Primaris.


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## pwm (Jan 19, 2012)

Yes, my account has also been corrected. There are a total of 4 transactions. I believe this is known as a "notional distribution". The account history now looks like this:

View attachment 426


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## Pluto (Sep 12, 2013)

And speaking of xre, when I held it I noticed that about 80-90 % of the distribution was Return of Capital. Anyone have any insight into that, good bad or indifferent? I assume the ROC part was not taxed as income.


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## pwm (Jan 19, 2012)

Interesting fact: I went back to Feb 2013 in eServices at TDW, and the same thing happened last year for XRE, CDZ and CBO. I couldn't remember ever seeing such transactions at BMO Investorline, so I looked at the February 2013 statement in their eDocuments, and there is no such transaction for XRE or CDZ which are also in that account. It would appear that BMO shields the customer from seeing these "behind the scenes" transactions, while TDW does not. No doubt it cuts down on the calls to the BMO service desk!


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