- Mutual Funds
- Corporate Class
Canoe Corporate Class Funds offer the potential for growth and income, combined with enhanced tax efficiencies.
Benefits of Canoe Corporate Class Funds
There are different ways you can earn income on an investment: through interest income, dividends, capital gains, and return of capital. Each type of income is taxed differently. Corporate Class dividends are in the form of capital gains or dividend income - currently the most tax-efficient sources of income.
Working with your financial advisor or tax professional, you can take advantage of the opportunity to use capital losses in some Corporate Class mutual funds to offset gains in other Corporate Class funds.
Tax-efficient cash flow:
Canoe Series T6 funds offer investors the ability to access tax-efficient cash flow from Canoe Corporate Class funds as it is treated as return of capital.
In the 2016 Budget, effective January 2017 the tax-deferred switching of shares of one mutual fund for shares of another mutual fund where both mutual funds are part of the same mutual fund corporation (corporate class structure), has been eliminated. However, switches between series of the same mutual fund are still allowed on a tax-deferred basis. Note: this change will have no impact when corporate class funds are held in a registered plan.
Why is tax-efficiency important?
Of the three potential investment impacts - taxes, management expense ratios (MERs) and inflation - taxes represent the biggest impediment to wealth accumulation.*
This chart demonstrates the benefits of an investment taxed at a corporate tax rate versus an investment taxed at a dividend tax rate or interest tax rate.
Tax-efficient Growth of $10,000 Invested**
*Source: The Canadian Securities Institute.
**Assumptions: For all scenarios, we have assumed a pre-tax rate of return of 6.5% and all income reinvested. For the corporate class scenario, we have assumed a reinvested annual capital gains dividend of 5%, taxed at an effective rate of 26.8%. The dividend-paying scenario assumes eligible dividends are received and taxed annually at 39.3% . The interest-paying scenario assumes interest is taxed annually at 56.5%. Taxable dividends may also be paid to investors. We have assumed 2016 Ontario provincial tax rates for the purpose of this document. The tax rate applicable to an investor will vary based on the provincial tax rate applicable to them.
For illustrative purposes only.
Corporate Class Funds
|Canoe Bond Advantage Class||GOC703||GOC701||GOC702||-||-||-|
|Canoe Global Income Class||GOC1203||GOC1201||GOC1202||-||-||-|
|Canoe Enhanced Income Class||GOC903||GOC901||GOC902||-||-||-|
|Canoe Strategic High Yield Class||GOC5003||GOC5001||GOC5002||-||-||-|
|Canoe Canadian Monthly Income Class||GOC203||GOC201||GOC202||GOC204||GOC205||GOC2036|
|Canoe North American Monthly Income Class||GOC6003||GOC6001||GOC6002||-||-||-|
|Canoe Canadian Asset Allocation Class||GOC303||GOC301||GOC302||GOC304||GOC305||GOC3036|
|Canoe Equity Income Class||GOC1003||GOC1001||GOC1002||-||-||-|
|Canoe Equity Class||GOC403||GOC401||GOC402||GOC404||GOC405||GOC4036|
|Canoe U.S. Equity Income Class||GOC1103||GOC1101||GOC1102||-||-||-|
|Canoe U.S. Equity Income Class
(USD Purchase Option)
|Canoe Global Equity Income Class||GOC9003||GOC9001||GOC9002||-||-||-|
|Canoe Energy Income Class||GOC2003||GOC2001||GOC2002||-||-||-|
|Canoe Energy Class||GOC503||GOC501||GOC502||-||-||-|
The information contained in this report is designed to provide you with general information related to investment alternatives and strategies available as of the date indicated and is not intended to be comprehensive investment advice applicable to the circumstances of the individual and should not be considered as personal investment advice or an offer or solicitation to buy or sell securities. This document may contain forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated, and should not be unduly relied upon. Canoe does not undertake any obligation to publicly update or revise any forward-looking statements. Market conditions may change and the manager accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained herein. We strongly recommend you to consult with a financial advisor prior to making any investment decisions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Simplified Prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.