Mutual Fund Trusts vs. Corporations
|
|
- Gregory Washington
- 8 years ago
- Views:
Transcription
1 Mutual Fund Trusts vs. Corporations May 2015 Most mutual funds in Canada are structured as mutual fund trusts. However, a number of managers offer funds under the umbrella of a mutual fund corporation. These structures are more commonly known as corporate class funds. Dimensional s investment process continually balances the tradeoffs between competing premiums, diversification, and costs. Although the structural choice between a trust and a corporation is outside the scope of the investment process, a mutual fund s structure may impact the net return to investors. Consequently, Dimensional has carefully considered the tradeoffs between these two alternatives. This paper describes some of these tradeoffs, explains why trusts are the preferred structure for Dimensional s Canadian-domiciled mutual funds, and highlights some areas where the costs and benefits of corporate class funds are often misconstrued. COMPARING THE STRUCTURES A mutual fund corporation is a single legal entity for tax purposes, with classes tracking the portfolios of securities that make up the various funds. Each fund is a class of shares in the corporation attributable to a portfolio of securities, and the tax positions and expenses of all funds When evaluating mutual fund structures, advisors should carefully weigh costs and benefits to determine which structure may best serve clients. under the corporate umbrella are rolled up and included in computing the corporation s overall taxable income. As a result, when determining the corporation s overall tax position, one fund s attributes (e.g., capital losses, fees in excess of taxable income, etc.) may be used to offset taxable income in the other funds. The board then declares and pays capital gains or ordinary dividends to shareholders of the various funds in a manner deemed fair and reasonable. Mutual fund trusts, on the other hand, are separate legal entities in which taxable income is determined on a fund by fund basis. This method is equitable, transparent, and does not rely on a board to determine what is fair and reasonable.
2 DIMENSIONAL FUND ADVISORS 2 THE MYTH OF TAX-FREE REBALANCING One of the primary benefits touted by managers of corporate class funds is that investors can rebalance tax free due to a specific tax act provision that deems switches between funds under the same corporate umbrella to not be a disposition of shares in the corporation. At best, the result of this provision is a tax deferral, not a tax savings, because tax on capital gains will be paid eventually, when shares of the corporation are sold. 1 Shares are considered sold when the investor redeems fund holdings rather than switching funds within the corporation. A tax deferral offers the ability to harness the time value of money on the amount deferred. Despite this benefit, a tax deferral is still worth significantly less than a tax savings. Moreover, when all sources of capital gains are considered as a whole, there may not even be a tax deferral. Mutual fund investors realize capital gains in two ways: (1) when the manager sells appreciated securities held in the fund and the related capital gains are distributed by way of capital gains dividends or capital gains distributions, and (2) when investors sell their appreciated fund shares or units. Mutual funds can rely on the capital gain refund mechanism (CGRM) to minimize the potential for double taxation that could arise from the combined effect of these two sources of capital gains. The rather complicated formula 2 aims to reduce the amount of capital gain that must be distributed from the fund (i.e., the first source) by the aggregate capital gains realized by all investors who sold their holdings of the fund itself (i.e., the second source). Exhibits 1 and 2 illustrate how these capital gain sources and the CGRM apply to mutual fund trusts and corporations. While both structures can use the CGRM, no capital gains refund is available when investors switch between funds under the same corporate umbrella. Consequently, the amount of capital gain that must be distributed from a mutual fund corporation increases by roughly the amount of capital gain that is otherwise deferred by tax-free switching between funds under the same corporate umbrella. 3 Ultimately, the aggregate amount of capital gain is more or less the same between the two structures. The difference EXHIBIT 1: CAPITAL GAINS TAX TREATMENT MUTUAL FUND TRUST FUND A Switches Taxable event CGRM applies FUND B Capital Gain Distribution Reduced by CGRM from switches and other redemptions from the fund. Capital Gain Distribution Reduced by CGRM from switches and other redemptions from the fund. Fund A Fund B
3 DIMENSIONAL FUND ADVISORS 3 EXHIBIT 2: CAPITAL GAINS TAX TREATMENT MUTUAL FUND CORPORATION FUND A Switches Non-taxable event CGRM does not apply FUND B Mutual Fund Corporation Capital Gain Dividend CGRM applies only to redemptions that are taxable events (i.e., a redemption of shares of the corporation), not to switches that are not taxable events. Allocation to Fund A and Fund B determined by the board of directors. Fund A Fund B When a mutual fund corporation rebalance into another fund under the same corporate umbrella, they defer realizing a capital gain on the sale of appreciated shares of the fund, but the CGRM does not reduce the capital gain dividends the board declares on shares of various funds within the corporation. may be in who gets the capital gain and how. For example, Exhibit 3 outlines the amount of CGRM available to each Dimensional fund as a percentage of average net assets in Hypothetically, the capital gain distributions from these funds would have increased by this amount had they been structured as share classes of the same corporation and had all of the redemptions been the result of tax-free switching into other funds. LET IT FLOW All types of income including interest, derivative income, foreign dividends, Canadian dividends, and capital gains flow through a mutual fund trust. In contrast, only capital gains and Canadian dividends flow through a mutual fund corporation. Capital gains flow through the corporation as a capital gains dividend that is taxed as such in the hands of shareholders, while Canadian dividends flow through the corporation as an ordinary dividend. Other types of income, such as interest, foreign dividends, and derivative income, are taxable in the corporation unless otherwise sheltered by deductible expenses or losses. The tax reduces the net asset value (NAV) by the amount of tax paid. A lower NAV is less visible than a mutual fund trust income distribution reported on a T3 for inclusion on the unitholder s tax return. The NAV reduction is also more opaque because the board of directors does not have to disclose the methodology used to allocate any tax payable within the corporation against the NAV of the various funds.
4 DIMENSIONAL FUND ADVISORS 4 EXHIBIT 3: CAPITAL GAIN REFUND MECHANISM (CGRM) FOR DIMENSIONAL FUNDS IN 2014 Fund CGRM (% of Average Net Assets) DFA Canadian Core Equity Fund 0.74% DFA Canadian Vector Equity Fund 0.00% DFA US Core Equity Fund 4.35% DFA US Vector Equity Fund 5.31% DFA International Core Equity Fund 1.03% DFA International Vector Equity Fund 0.36% DFA Five-Year Global Fixed Income Fund 0.67% DFA Global Real Estate Securities Fund 2.76% DFA Global Investment Grade Fixed Income Fund 0.69% Source: Dimensional Fund Advisors. Paying tax on net income within the corporation may be more costly than receiving a distribution of net income from a trust since the latter reduces your unrealized gain on units of the fund by the amount of income distributed. On the other hand, tax payable within the corporation reduces the NAV of the fund to which it is allocated, and this reduction in NAV only reduces the unrealized gain on shares of the fund by the amount of tax paid on the net income. In effect, the after-tax amount of income in the corporation will increase the unrealized gain 4 on shares of the fund compared to how the income would flow through a trust. This leads to the potential for double taxation when the increased capital gain on the fund is realized upon redemption of shares of the corporation. Exhibits 4 and 5 highlight the difference in tax treatment for a trust vs. corporation, assuming $10 of income earned from interest, foreign dividends, or other sources. The calculations are net of expenses and assume only one fund. In this example, an investor with a marginal tax rate below 55% would be better off with the trust structure, 5 and the corporation would be particularly disadvantageous to non-taxable investors, such as RRSPs and other registered plans. The benefit of a trust increases as the spread widens EXHIBIT 4: TAX IMPACT ILLUSTRATION MUTUAL FUND TRUST Mutual Fund Trust Income from securities held by the fund = $10 Distribution of income to investors (i.e., T3) Tax paid within the fund (i.e., reduction in NAV) Unrealized gains on units of the fund $10 $0 Unrealized gain on units of the fund decreases by $10 income distribution, therefore, no double taxation $4.60 of income tax payable at 46% Effective Tax Rate: $4.60 $10 = 46%
5 DIMENSIONAL FUND ADVISORS 5 EXHIBIT 5: TAX IMPACT ILLUSTRATION MUTUAL FUND CORPORATION Mutual Fund Corporation Income from securities held by the fund = $10 Distribution of income to investors Tax paid within the fund (i.e., reduction in NAV) Unrealized gains on shares of the fund $0 $4.20 of tax payable at 42% Unrealized gain on shares of the fund decreases by $4.20 reduction in NAV Effective Tax Rate: ($ $1.33) $10 = 55.3% $1.33 tax payable at 23% on additional capital gain of $5.80 ($10.00 $4.20) upon redemption of shares of the corporation between the investor s marginal tax rate and effective tax rate (i.e., combining the two levels of tax) of the corporate structure. The benefit of a trust is moderated when the second level of tax from the increased capital gain of the corporate structure is deferred. It is very common for corporate class funds to be structured as a fund-of-funds whereby the investments made by the corporation are in units of the funds offered by the manager in trust form. For investors with low or zero marginal tax rates, this approach gives them the option to invest in the trust version of the fund. But the fund-of-funds approach also adds an additional layer of cost to the fund complex. In an effort to ensure a corporation does not have net income, many fund managers apply one or both of the following strategies: They try to reduce the amount of interest, foreign dividends, and other income generated by the underlying investments, or they charge fees and expenses that are high enough to deduct against all of the income from the funds under the corporate umbrella. The corporate structure is disadvantageous for Dimensional because low fees, combined with the foreign dividend and interest income-generating nature of our broadly diversified holdings, would almost always result in the corporation paying tax on its net income. Higher management expense ratios (MER), such as those typically found in the Canadian mutual funds, would offset some, if not all, of this income, but the reduction in tax would obviously be worth less than the increase in cost. GIVING CREDIT Dividends received from non-canadian companies are usually subject to foreign withholding taxes because most countries require tax to be withheld from dividend payments to foreign investors and remitted to the local government. Although withholding taxes vary by country, 15% is the most common rate. Taxable mutual fund trusts generally receive a credit 6 for the amount of foreign taxes paid (up to 15% of dividends), so the tax paid to foreign governments is substantially, if not completely, offset by a reduction in Canadian taxes. 7
6 DIMENSIONAL FUND ADVISORS 6 A little-known disadvantage of mutual fund corporations is they cannot make designations to shareholders with respect to foreign taxes paid, which would allow the shareholders to claim foreign tax credits. Mutual fund corporations can deduct the foreign taxes paid from the corporation s taxable income. 8 However, the benefit of a tax deduction is the amount deducted multiplied by the marginal tax rate, whereas the benefit of a tax credit is generally the full amount of the credit. Exhibit 6 shows foreign taxes paid as a percentage of average net assets in Dimensional s US and International equity funds for 2014 and compares the value of an investor claiming the amounts as a credit 9 and the value of a deduction from the corporation s taxable income. 10 The difference would have been 15 to 23 basis points of additional cost to taxable investors if the funds were corporations deducting foreign taxes instead of trusts in which investors can claim foreign tax credits. This assumes the corporation has taxable income, which it may not have for reasons explained in the section Let It Flow. In that case, the deduction has no value, and the difference would have equaled the full amount of the foreign tax credit (i.e., 25 to 40 basis points). This additional cost is often overlooked because investors feel the impact of lost tax credits when they file a tax return but may not realize they lost tax credits that would have been applied if they had invested in a mutual fund trust. EXHIBIT 6: VALUE OF A FOREIGN TAX CREDIT VS. TAX DEDUCTION IN DIMENSIONAL FUNDS, 2014 (PERCENT OF NET ASSETS) Fund Foreign Taxes Paid Value of Foreign Tax Credit Value of Foreign Tax Deduction* Difference between Foreign Tax Credit and Deduction DFA US Core Equity Fund 0.26% 0.26% 0.11% 0.15% DFA US Vector Equity Fund 0.25% 0.25% 0.11% 0.15% DFA International Core Equity Fund 0.40% 0.40% 0.17% 0.23% DFA International Vector Equity Fund 0.38% 0.38% 0.16% 0.22% *Deduction x Marginal Tax Rate. Assumes a 42% marginal tax rate. Source: Dimensional Fund Advisors. SUMMARY Mutual fund trusts are Dimensional s preferred option for the following reasons: 1. Low fees and expenses compared to the interest and foreign dividends expected from our investment strategies would result in a corporation paying tax on the remaining net income. 2. Deducting foreign taxes paid from a corporation s taxable income instead of enabling a trust to claim foreign tax credits would cost taxable US and International equity funds approximately basis points, depending on the dividend yield and the extent to which the corporation would have had taxable income. 3. The highly touted benefit of tax-free rebalancing is dubious when considering how the capital gain refund mechanism is applied. The aggregate amount of capital gain is more or less the same between the two structures. The difference may be how and to whom the capital gain is applied. 4. The accounting method for trusts is equitable, transparent, and does not rely on a board to determine what is fair and reasonable without disclosure. Corporate class funds have been heavily promoted in recent years, although proponents have emphasized the potential benefit without much regard for the potential cost. When evaluating mutual fund structures, advisors should carefully weigh costs and benefits to determine which structure may best serve clients.
7 DIMENSIONAL FUND ADVISORS 7 1. Assuming shares of the fund have appreciated prior to being sold. 2. CGRM formula: A/B x (C + D), where A = total of all amounts paid by the corporation in the year on the redemption of shares of its capital stock, B = total of the fair market value at the end of the year of all the issued shares of its capital stock and the amount determined for A in respect of the corporation for the year, C = 100/14 of the corporation refundable capital gains tax on hand at the end of the year, and D = amount determined by the following formula: D = (K + L) (M + N), where K = amount of the fair market value at the end of the year of all the issued shares of the corporation capital stock, L = total of all amounts each of which is the amount of any debt owing by the corporation, or of any other obligation of the corporation to pay an amount, that was outstanding at that time, M = total of the cost amounts to the corporation at that time of all its properties, and N = amount of any money of the corporation on hand at that time. 3. A CGRM balance cannot be carried forward, so this assumes the full amount of CGRM could have been used (i.e., net realized capitals gains CGRM) had the switches been considered a redemption (i.e., taxable event) like they are for trusts. It is prudent for managers to monitor their CGRM balances compared to realized capital gains and to harvest gains, in effect increasing the cost basis, prior to year-end so that the CGRM can be fully utilized. 4. Or reduce the unrealized loss. 5. Assuming a redemption of shares of the corporation in the current year. 6. Provided the fund makes the appropriate designation. 7. Withholding tax rates vary by country (i.e., some are more and some are less than the typical 15% rate). A maximum foreign tax credit of 15% is applied at the portfolio level, not by country, but if the weighted average withholding tax rate exceeds 15%, then the full amount would not be recovered and some withholding tax would apply. 8. A mutual fund corporation can claim a foreign tax credit or take a deduction, but most take the deduction because calculating the tax credit has the administrative burden of obtaining detailed information on a country-by-country basis. 9. Assumes the credit is the amount of the investor s tax payable. 10. The deduction (or credit, if applicable) only has value to the extent that the corporation has taxable income and many do not for reasons explained under Let it Flow. If the corporation has no taxable income then the deduction has no value. FOR ADVISOR AND DEALER USE ONLY. NOT FOR PUBLIC USE. DO NOT DISTRIBUTE. These materials are by Dimensional Fund Advisors Canada ULC (DFA Canada) for educational purposes only and should not be construed as investment advice or an offer of any security for sale. The material in this publication is provided solely as background information for registered investment advisors and dealers and is not intended for public use. This material is not a sales communication and should not be distributed to clients of DFA Canada, to unitholders of mutual funds managed by DFA Canada or to potential mutual funds managed by DFA Canada. Unauthorized copying, reproducing, duplicating, or transmitting of this material is prohibited.
The Mechanics of Corporate Class
The Mechanics of Corporate Class How Corporate Class works Whether your clients have investments in their corporate accounts, non-registered investments or both, the tax efficiency of their investments
More informationUnderstanding the Tax Implications of Exchange-Traded Funds
Understanding the Tax Implications of Exchange-Traded Funds 11/21/2003 1 Forward Barclays Global Investors Canada Limited (Barclays Canada) is pleased to present "Understanding the Tax Implications of
More informationSeries of Shares B, B-6, E, F, F-6, O B, E, F, O O A, B
No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. The Funds and their securities offered under this Annual Information Form are
More informationIRAs: Four Facts You Should Know
IRAs: Four Facts You Should Know Overview: The decision between contributing to a traditional 2007 IRA and a Roth IRA depends on many factors. The following discusses some of the key concepts to consider
More informationThe Corporate Investment Shelter. Corporate investments
September 2012 The Corporate Investment Shelter Many successful business owners retire with more assets than they need to live well. With that realization, their focus can shift from providing retirement
More informationTAXES AND INVESTING IN MUTUAL FUNDS
TAXES AND INVESTING IN MUTUAL FUNDS Contents Why Understanding Taxes Is Important 1 What Is a Mutual Fund? 2 When Do I Pay Taxes on My Mutual Fund Investment? 2 Principles Related to Taxes and Investing
More informationTAX ASPECTS OF MUTUAL FUND INVESTING
Tax Guide for 2015 TAX ASPECTS OF MUTUAL FUND INVESTING INTRODUCTION I. Mutual Fund Distributions A. Distributions From All Mutual Funds 1. Net Investment Income and Short-Term Capital Gain Distributions
More informationUnderstanding the taxability of investments
Understanding the taxability of investments Managing your portfolio to help control your tax bill Investors need to consider many factors in the process of choosing investments. One at the top of many
More informationINCORPORATING YOUR BUSINESS
INCORPORATING YOUR BUSINESS REFERENCE GUIDE If you are carrying on a business through a sole proprietorship or a partnership, it may at some point be appropriate to use a corporation to carry on the business.
More informationCross Border Tax Issues
Cross Border Tax Issues By Reinhold G. Krahn December 2000 This is a general overview of the subject matter and should not be relied upon as legal advice or opinion. For specific legal advice on the information
More informationTHE TAX-FREE SAVINGS ACCOUNT
THE TAX-FREE SAVINGS ACCOUNT The 2008 federal budget introduced the Tax-Free Savings Account (TFSA) for individuals beginning in 2009. The TFSA allows you to set money aside without paying tax on the income
More informationSimplified Prospectus
Simplified Prospectus April 3, 2014 BMO Security Funds BMO Money Market Fund (series A, F, I, Advisor Series and Premium Series) BMO Income Funds BMO Bond Fund (series A, F, D, I, NBA, NBF and Advisor
More informationChoosing tax-efficient investments
Choosing tax-efficient investments Managing your portfolio to help control your tax bill Investors need to consider many factors in the process of choosing investments. One at the top of many investors
More informationSegregated funds or mutual funds
Segregated funds or mutual funds Do you know the differences? Although there are many similarities between these two investment products, there are also some important ways in which they differ. One important
More information>Most investors spend the majority of their time thinking and planning
Generating Retirement Income using a Systematic Withdrawal Plan SPECIAL REPORT >Most investors spend the majority of their time thinking and planning around how best to save for retirement. But once you
More informationINVESTMENT HOLDING COMPANIES
INVESTMENT HOLDING COMPANIES > RBC DOMINION SECURITIES INC. FINANCIAL PLANNING PUBLICATIONS At RBC Dominion Securities Inc., we have been helping clients achieve their financial goals since 1901. Today,
More informationMIDDLEFIELD RESOURCE FUNDS. Understanding Tax Advantaged Investments
MIDDLEFIELD RESOURCE FUNDS Understanding Tax Advantaged Investments Middlefield Group profile Since its inception in 1979, the Middlefield Group, with over $3.0 billion in assets under management, has
More informationNon-Financial Assets Tax and Other Special Rules
Wealth Strategy Report Non-Financial Assets Tax and Other Special Rules OVERVIEW Because unique attributes distinguish them from other asset classes, nonfinancial assets may offer you valuable financial
More informationUnderstanding mutual fund share classes, fees and certain risk considerations
Disclosure Understanding mutual fund share classes, fees and certain risk considerations Highlights Mutual funds may offer different share classes most commonly in retail brokerage accounts, Class A, B
More informationIncorporating your farm. Is it right for you?
Incorporating your farm Is it right for you? RBC Royal Bank Incorporating your farm 2 The following article was written by RBC Wealth Management Services If you have considered incorporating your farm,
More informationINCOME TAX AND CAPITAL GAINS INFORMATION
AGF & ACUITY MUTUAL FUNDS 2014 INCOME TAX AND CAPITAL GAINS INFORMATION This booklet covers income tax reporting information relating to your AGF investments and capital gains. As always, we recommend
More informationHSBC Mutual Funds Annual Information Form
HSBC Mutual Funds Annual Information Form June 8, 2015 HSBC Global Corporate Bond Fund HSBC Global Equity Volatility Focused Fund Investor Series, Advisor Series, Premium Series, Manager Series and Institutional
More informationSeries A shares, Series F shares, Series I shares, Series D shares, Series XA shares, Series XF shares, Series XUA shares and Series XUF shares
A copy of this annual information form has been filed with the securities authorities in each of the provinces and territories of Canada but has not yet become final for the purpose of a distribution.
More informationWill Exchange-Traded Funds Replace Conventional Mutual Funds? Presentation by Gary L. Gastineau
Will Exchange-Traded Funds Replace Conventional Mutual Funds? Presentation by Gary L. Gastineau The Merrill Lynch Center for the Study of International Financial Services and Markets Hofstra University
More informationThe single source for all your executive benefit needs. A Primer on. Nonqualified Deferred
M Benefit Solutions The single source for all your executive benefit needs A Primer on Nonqualified Deferred Compensation Plans DISCLOSURE INFORMATION This material is intended for informational purposes
More informationCOLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION
1. EMPLOYEE INFORMATION (Please print) COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION Name: Address: Social Security No.: Birth Date: City: State: Zip: Termination
More informationMany individuals hold investment portfolios in
BMO NESBITT BURNS Understanding Personal Holding Companies Many individuals hold investment portfolios in a personal holding company. It is important for these investors to understand the various tax implications
More informationCORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY
CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE *Advisor USE ONLY TABLE OF CONTENTS Introduction to the corporate retirement strategy...2 Identify the opportunity - target markets... 3 Policy ownership: corporate
More informationUnit Investment Trusts
a guide to Unit Investment Trusts A unit investment trust (UIT) is a registered investment company that buys and holds a generally fixed portfolio of stocks, bonds, or other securities. Table of Contents
More informationTAXES & INVESTING IN MUTUAL FUNDS. What you need to know
TAXES & INVESTING IN MUTUAL FUNDS What you need to know CONTENTS Overview 1 nwhy understanding taxes is important 1 nwhat is a mutual fund? 1 nwhen do I pay taxes on my mutual fund investments? 1 nprinciples
More informationMid-Cap Value Fund I Class
PROSPECTUS TRMIX May 1, 2016 T. Rowe Price Mid-Cap Value Fund I Class A fund seeking long-term capital appreciation through investments in stocks of midcap companies that appear to be undervalued. This
More informationREADING 11: TAXES AND PRIVATE WEALTH MANAGEMENT IN A GLOBAL CONTEXT
READING 11: TAXES AND PRIVATE WEALTH MANAGEMENT IN A GLOBAL CONTEXT Introduction Taxes have a significant impact on net performance and affect an adviser s understanding of risk for the taxable investor.
More informationEQUITY COMPENSATION OVERVIEW OPTIONS, RESTRICTED STOCK AND PROFITS INTERESTS
EQUITY COMPENSATION OVERVIEW OPTIONS, RESTRICTED STOCK AND PROFITS INTERESTS There are many equity compensation techniques, and they of course have varying tax implications. This memo discusses three widely
More informationHow To Sell Shares Of A Fund
Continuous Offering November 1, 2012 ACORN DISCIPLINED CORE FUND Series C and Series I Units Offering Memorandum This Offering Memorandum constitutes an offering of the securities described herein only
More informationCapital Appreciation Fund I Class
PROSPECTUS TRAIX May 1, 2016 T. Rowe Price Capital Appreciation Fund I Class A relatively conservative stock fund seeking long-term capital appreciation through common stocks as well as fixed income securities.
More informationThe Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund.
The Pinnacle Funds Simplified Prospectus December 11, 2009 Class A and Class F units and Class I units where noted Money Market Fund Pinnacle Short Term Income Fund Bond Funds Pinnacle Income Fund Pinnacle
More informationTMX TRADING SIMULATOR QUICK GUIDE. Reshaping Canada s Equities Trading Landscape
TMX TRADING SIMULATOR QUICK GUIDE Reshaping Canada s Equities Trading Landscape OCTOBER 2014 Markets Hours All market data in the simulator is delayed by 15 minutes (except in special situations as the
More informationUnderstanding the 2013 Year-End Distributions Table
Understanding the 2013 Year-End Distributions Table Year-end distribution overview Q. What is Fidelity doing this year with regard to providing information on mutual fund distributions to Fidelity fund
More informationTax-smart ways to save and invest. TIAA-CREF Financial Essentials
Tax-smart ways to save and invest TIAA-CREF Financial Essentials Today s agenda: 1. Finding funds for saving 2. Tax law provisions promoting saving 3. TIAA-CREF savings opportunities 4. TIAA-CREF can help
More informationDFA INVESTMENT DIMENSIONS GROUP INC.
PROSPECTUS February 28, 2014 Please carefully read the important information it contains before investing. DFA INVESTMENT DIMENSIONS GROUP INC. PORTFOLIOS FOR LONG-TERM INVESTORS SEEKING TO INVEST IN:
More informationTax-Efficient Investing for Charitable Remainder Unitrusts
Tax-Efficient Investing for Charitable Remainder Unitrusts Higher taxes raise the stakes High net worth individuals have faced growing challenges with the impact of higher taxes on ordinary income and
More informationMUTUAL FUND TAX GUIDE. For your 2013 Tax Return
MUTUAL FUND TAX GUIDE For your 2013 Tax Return LESS = MORE THE LESS TAX YOU PAY, THE MORE YOUR INVESTMENTS WILL EARN February 2014 Did you know that taxes are probably the biggest expense you ll face over
More informationSimplified Prospectus. July 23, 2015
Simplified Prospectus July 23, 2015 Marquest Money Market Fund Marquest Short Term Income Fund (Corporate Class*) Marquest Canadian Bond Fund Marquest Canadian Fixed Income Fund Marquest Monthly Pay Fund
More informationCharitable Donations of Securities
The Navigator RBC WEALTH MANAGEMENT SERVICES Charitable Donations of Securities Gifting shares instead of cash could enhance your tax benefit To encourage individuals to increase their charitable giving,
More informationSunFlex Retirement Income
SunFlex Retirement Income PERFORMANCE-LINKED INVESTMENT OPTIONS BOOKLET Life s brighter under the sun Contents Investment options Sun Life Granite Managed Solutions Sun Life Granite Conservative Portfolio...
More informationShort-Term Bond Fund
PROSPECTUS PRWBX October 1, 2015 T. Rowe Price Short-Term Bond Fund A bond fund seeking income with minimal fluctuations in principal value through investments in shorter-term investment-grade bonds. The
More informationINVESTMENT STRATEGIES. 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future
INVESTMENT STRATEGIES 10 Tax-Wise Strategies That May Reduce Your Taxes in the Future 10 TAX-WISE STRATEGIES 1. Make tax-deferred investments Take full advantage of tax-deferred investment opportunities,
More informationEXPLANATION OF DIRECT ROLLOVER OPTION
EXPLANATION OF DIRECT ROLLOVER OPTION You have the right to consider the decision whether or not to elect a direct rollover for at least 30 days after this Explanation is provided to you. This notice explains
More informationHigh Yield Fund PRHYX. T. Rowe Price PROSPECTUS
PROSPECTUS PRHYX October 1, 2015 T. Rowe Price High Yield Fund A higher-risk bond fund seeking income and capital appreciation through investments in below investment-grade bonds. The Securities and Exchange
More informationH.T. BAILEY INSURANCE GROUP 401(k) PLAN Case # 943-80987. ELECTION OF PAYMENT METHOD (Please Print Clearly)
H.T. BAILEY INSURANCE GROUP 401(k) PLAN Case # 943-80987 ELECTION OF PAYMENT METHOD (Please Print Clearly) PARTICIPANT NAME: DATE OF BIRTH: SOCIAL SECURITY NUMBER: DATE OF HIRE: DATE OF TERMINATION: DO
More informationHealth Sciences Fund PRHSX. T. Rowe Price PROSPECTUS
PROSPECTUS PRHSX May 1, 2015 T. Rowe Price Health Sciences Fund An aggressive stock fund seeking long-term capital appreciation through investments in stocks of companies involved in the health care, medicine,
More informationHardship distributions. A hardship distribution is not eligible for rollover.
SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS 1 (Alternative to IRS Safe Harbor Notice - For Participant) This notice explains how you can continue to defer federal income tax on your retirement plan savings
More informationSPDR S&P 500 ETF Trust ( SPY or the Trust ) (A Unit Investment Trust)
SPDR S&P 500 ETF Trust ( SPY or the Trust ) (A Unit Investment Trust) Principal U.S. Listing Exchange for SPDR S&P 500 ETF Trust: NYSE Arca, Inc. under the symbol SPY Prospectus Dated January 23, 2013
More informationA GUIDE TO MUTUAL FUND INVESTING
Many investors turn to mutual funds to meet their long-term financial goals. They offer the benefits of diversification and professional management and are seen as an easy and efficient way to invest.
More informationTOWN OF NATICK OBRA 457 DEFERRED COMPENSATION GOVERNMENTAL PLAN DISTRIBUTION FORM
TOWN OF NATICK OBRA 457 DEFERRED COMPENSATION GOVERNMENTAL PLAN DISTRIBUTION FORM PARTICIPANT/ ALTERNATE PAYEE INFORMATION DISTRIBUTION REASON PAYMENT METHOD SPOUSE S CONSENT TO DISTRIBUTION (not applicable
More informationSpin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009
Spin-Off of Time Warner Cable Inc. Tax Information Statement As of March 19, 2009 On March 12, 2009, Time Warner Inc. ( Time Warner ) completed the spin-off (the Spin-Off ) of Time Warner s ownership interest
More informationTAX PLANNING FOR THE SALE OF YOUR BUSINESS
TAX PLANNING FOR THE SALE OF YOUR BUSINESS REFERENCE GUIDE If you own a corporation that carries on an active business, you may be in a position at some point to consider the sale of your business. This
More informationFIRSTSERVICE CORPORATION NOTICE OF REDEMPTION & CONVERSION TO ALL REGISTERED HOLDERS OF OUTSTANDING 7% CUMULATIVE PREFERENCE SHARES, SERIES 1
FIRSTSERVICE CORPORATION NOTICE OF REDEMPTION & CONVERSION TO ALL REGISTERED HOLDERS OF OUTSTANDING 7% CUMULATIVE PREFERENCE SHARES, SERIES 1 To: All Registered Holders of Outstanding 7% Cumulative Preference
More informationP. O. Box 2069 Woburn, MA 01801-1721 (781) 938-6559 NOTICE TO PARTICIPANTS SEPARATED FROM SERVICE
P. O. Box 2069 Woburn, MA 01801-1721 (781) 938-6559 NOTICE TO PARTICIPANTS SEPARATED FROM SERVICE Under the terms of the SBERA 401 (k) Plan, you may now elect to withdraw your total account balance. Your
More informationGUARDIAN CAPITAL FUNDS
GUARDIAN CAPITAL FUNDS SIMPLIFIED PROSPECTUS DATED APRIL 20, 2015 Offering Series W and Series I units Guardian Balanced Fund Guardian Balanced Income Fund Guardian Canadian Bond Fund Guardian Canadian
More informationINSTRUCTIONS FOR COMPLETING INSURANCE COMPANY FINANCIAL STATEMENTS
INSTRUCTIONS FOR COMPLETING INSURANCE COMPANY "DRAFT VERSION FOR FIRST REVIEW ONLY" Submitted to: Minstry of Finance and Economy Head of Insurance Department Republic of Armenia Submitted by: BearingPoint
More informationSPECIAL TAX NOTICE REGARDING PLAN PAYMENTS (Alternative to IRS Safe Harbor Notice - For Participant)
SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS (Alternative to IRS Safe Harbor Notice - For Participant) This notice explains how you can continue to defer federal income tax on your retirement plan savings
More informationA. TYPES OF PLAN DISTRIBUTIONS
SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS 1 (Alternative to IRS Safe Harbor Notice - For Participant) This notice explains how you can continue to defer federal income tax on your retirement plan savings
More informationManaging Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA
Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA About the Author Ray Meadows is the president of Berkeley Investment Advisors, a real estate brokerage and investment advisory firm. He
More informationGUIDE TO TAX-EFFICIENT INVESTING
LONGEVITY INCOME VOLATILITY ESTATE INFLATION TAXES GUIDE TO TAX-EFFICIENT INVESTING CORPORATE CLASS FUNDS SERIES T SHARES Tax efficiency is an important consideration when building wealth outside of registered
More informationT h e R e t i r e m e n t S a v i n g s D e b a t e...
T h e R e t i r e m e n t S a v i n g s D e b a t e............. I n s i d e o r o u t s i d e t h e R R S P s t r u c t u r e? RRSPs have traditionally been viewed as the most efficient, self-funding
More informationOverseas Stock Fund I Class
PROSPECTUS TROIX March 1, 2016 T. Rowe Price Overseas Stock Fund I Class A fund seeking long-term growth of capital through investments in common stocks of non-u.s. companies and a core approach to stock
More informationEquity Income Fund PRFDX. T. Rowe Price PROSPECTUS
PROSPECTUS PRFDX May 1, 2015 T. Rowe Price Equity Income Fund A fund seeking a high level of dividend income and long-term capital growth through investments in large-capitalization stocks of companies
More informationCatalyst Insider Buying Fund CLASS A: INSAX CLASS C: INSCX CLASS I: INSIX SUMMARY PROSPECTUS NOVEMBER 1, 2014
Catalyst Insider Buying Fund CLASS A: INSAX CLASS C: INSCX CLASS I: INSIX SUMMARY PROSPECTUS NOVEMBER 1, 2014 Before you invest, you may want to review the Fund s complete prospectus, which contains more
More informationTax Aspects of Buy-Sells
Tax Aspects of Buy-Sells By Charles A. Wry, Jr. mbbp.com Business Technology & IP Employment & Immigration Taxation 781-622-5930 Reservoir Place 1601 Trapelo Road, Suite 205 Waltham, MA 02451 781-622-5930
More informationVirginia Tax-Free Bond Fund
PROSPECTUS PRVAX July 1, 2015 T. Rowe Price Virginia Tax-Free Bond Fund A longer-term bond fund seeking income exempt from federal and Virginia state income taxes. The Securities and Exchange Commission
More informationThe IRA Rollover. Making Sense Out of Your Retirement Plan Distribution
The IRA Rollover Making Sense Out of Your Retirement Plan Distribution Expecting a Distribution? You have been a participant in your employer s retirement plan for a number of years, and you have earned
More informationHSBC Mutual Funds. Simplified Prospectus June 8, 2015
HSBC Mutual Funds Simplified Prospectus June 8, 2015 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: HSBC Global Corporate
More informationInsurance Corporate Insured Retirement Plan
Advisor Guide The BMO Insurance Corporate Insured Retirement Plan Because successful businesses need security and income Table of Contents Introduction to The BMO Insurance Corporate Insured Retirement
More informationSPECIAL TAX NOTICE REGARDING PLAN PAYMENTS
SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS This notice explains how you can continue to defer federal income tax on your retirement savings and contains important information you will need before you decide
More informationPROSPECTUS. First Asset Canadian REIT ETF 1 (the First Asset ETF )
No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. This prospectus constitutes a public offering of these securities only in those
More informationTaxation of stock options and restricted stock: the basics and beyond. by G. Edgar Adkins, Jr.*
Taxation of stock options and restricted stock: the basics and beyond by G. Edgar Adkins, Jr.* Taxation of stock options and restricted stock: the basics and beyond 1 Contents Page Introduction 2 Incentive
More informationHSBC Mutual Funds. Simplified Prospectus June 15, 2016
HSBC Mutual Funds Simplified Prospectus June 15, 2016 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: Cash and Money Market
More informationB.E.S.T. TOTAL RETURN FUND INC.
No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. PROSPECTUS CONTINUOUS OFFERING December 17, 2013 www.bestfunds.ca B.E.S.T. TOTAL
More informationCANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1
CANADIAN CORPORATE TAXATION A General Guide January 31, 2011 TABLE OF CONTENTS PART A PAGE INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 POTENTIAL DISADVANTAGES OF INCORPORATION
More informationEffective Tax Policy for Managing Investment Accounts. A Pinnacle Advisory Group White Paper
Effective Tax Policy for Managing Investment Accounts A Pinnacle Advisory Group White Paper Page www.pinnacleadvisory.com Executive Summary Pinnacle s goal is to maximize the net after-tax accumulation
More informationACTIONABLE STRATEGIES FOR REDUCING MEDICARE TAXES
ACTIONABLE STRATEGIES FOR REDUCING MEDICARE TAXES Medicare taxes increased in 2013 for high-income earners. Timely action can help reduce the impact of higher taxes. KEY TAKEAWAYS High-income taxpayers
More informationScotiaFunds. Annual Information Form. May 12, 2014
ScotiaFunds Annual Information Form May 12, 2014 Scotia Short Term Yield Class (Series M shares) Scotia Conservative Government Bond Capital Yield Class (Series A and M shares) Scotia Canadian Corporate
More informationCassell Consulting Ltd. Mark Caster Susan Elliott
A presentation designed for: Cassell Consulting Ltd. and Mark Caster Susan Elliott Prepared by: Sun Life Sample Table of Contents This presentation contains 8 sections as follows: 1. Problem Description
More informationMoss Adams Introduction to ESOPs
Moss Adams Introduction to ESOPs Looking for an exit strategy Have you considered an ESOP? Since 1984, we have performed over 2,000 Employee Stock Ownership Plan (ESOP) valuations for companies with as
More informationCOMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION
COMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION COMMENTARY ON ARTICLE 1 CONCERNING THE PERSONS COVERED BY THE CONVENTION 1. Whereas the earliest conventions in general were applicable to citizens
More informationHARDSHIP WITHDRAWAL ELECTION. To the Plan Administrator of., Participant.
HARDSHIP WITHDRAWAL ELECTION To the Plan Administrator of Re: ( Plan ):, Participant. 1. Withdrawal Election. As permitted by the Plan, I elect to withdraw the following portion of my Vested Account Balance
More informationTAX PLANNING FOR CANADIAN FARMERS
April 2014 CONTENTS Annual tax planning issues Income tax deferral Incorporating your farming business Long-term planning issues Taxation of capital gains Maximizing your capital gains exemption claims
More informationFederal Tax and Capital Gains: Rates Over Time
Preparing for a World of Higher Taxes Are You Ready? Presented by: Matt Sommer, CFP, CPWA, AIF Director and Senior Retirement Specialist, Retirement Strategy Group C-0610-114 4-30-11 Federal Tax and Capital
More informationGUIDE TO BUYING MUTUAL FUNDS. What you should know before you buy
GUIDE TO BUYING MUTUAL FUNDS What you should know before you buy A Guide to Mutual Fund Investing at HD Vest When you buy shares of a mutual fund from your HD Vest Advisor, you may choose from a number
More informationManaging Tax Accounting Requirements for Investments
Managing Tax Accounting Requirements for Investments ARF Program Track, Session #106 Speakers: Dave Knight, VP, Product Manager, State Street Global Exchange Drew Westall, Senior Manager, Johnson Lambert
More informationTERMINATION FORM - 206
TERMINATION FORM - 206 Participant must be provided with the Special Tax Notice Regarding Plan Payments. I INSTRUCTIONS The Termination Form is used to process all types of plan distributions due to termination
More informationYour Rollover Options For Payments Not From a Designated Roth Account
This document combines two Rollover Options notices. The first notice describes the rollover and other tax rules that apply to payments from the Plan that are not from a designated Roth account. The second
More informationDecember 2014. Tax-Efficient Investing Through Asset Location. John Wyckoff, CPA/PFS, CFP
John Wyckoff, CPA/PFS, CFP Your investment priorities are likely to evolve over time, but one goal will remain constant: to maximize your investment returns. Not all returns are created equal, however.
More informationINSTRUCTIONS TO EMPLOYER. What to do when an active participant requests a hardship or other in-service withdrawal
INSTRUCTIONS TO EMPLOYER What to do when an active participant requests a hardship or other in-service withdrawal 1. Print the following withdrawal forms and give them to the participant. The required
More informationNo securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise.
No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. PROSPECTUS Continuous Offering October 23, 2015 This prospectus qualifies the
More information