Canoe Financial is enhancing our Corporate Class structure. Many corporate class structures in the investment industry continue to be capped, or merged into trusts. Our new Portfolio Class maintains the benefits that you have come to expect from corporate class; tax-efficient income and tax-efficient growth.
A recent study has shown that taxes have grown faster than the other expenditures for the average Canadian family to become their largest expense. Additionally, the cost of taxes have grown faster than their income and also inflation.
Data Source: Frasier Institute, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, 2017 edition.
1. Tax-efficient Growth
The less taxes you pay, means more money remains invested to keep compounding and growing.
Source: Caone Financial. Hypothetical $10,000 in Portfolio Class vs Mutual Fund Trust in balance porfolio comprised of 60% Equities and 40% Fixed Incomes. Assumes highest marginal tax rate of Ontario of 53.53% Marginal Tax Rate on Income, 26.77% Marginal Tax Rate for Capital Gains.
2. Tax-efficient Income
Different forms of income have different tax rates. Canoe Portfolio Class aims to distribute the more tax efficient forms of income. Additionally, Canoe Portfolio Class Series T options for income distributes Return of Capital. This form of income is tax deferred, therefore no taxes will be paid on the income you receive until the capital is fully depleted.
Source: EY 2018 Personal Tax Calculator. Assumes Ontario highest marginal tax rate for income, which is a marginal tax rate of 53.53% on income paying investments.
Minimizing Taxes in Your Portfolio
Taxes are your largest expense, learn how they may be minimized in your portfolio.
Portfolio Class Fund Codes
Download the complete Portfolio Class line-up.
Portfolio Class Enhancements
Learn how Canoe is innovating its corporate class structure.
