Presentation on theme: "Tax-Efficient Cash Flow with. Agenda Market opportunity What is T-Class? How does T-Class work? Sales process Competitive overview."— Presentation transcript:
Tax-Efficient Cash Flow with
Agenda Market opportunity What is T-Class? How does T-Class work? Sales process Competitive overview
Market opportunity Retirees and pre-retirees looking for a stable income that also provides: Capital preservation Growth potential Tax minimization To overcome A low-yield environment Reduced dividends Disappearing income trusts Market volatility
What is T-Class? A new series available for more than 25 funds –Income, balanced, equity or managed solutions Regular, steady, tax-deferred cash flow stream with choice of two annual target distribution levels – 5% and 8% (paid monthly) At no additional cost
Cash Flow with T-Class
Tax Efficiency 1 Assumes a top marginal tax rate for Ontario of 46.4% for The difference in the after-tax value of $10,000 in income from interest, dividends, capital gains and return of capital 1
$1 million investment in an income mandate: Trust version income: Assumes 5% interest income and no capital growth 5.0% T-Class distribution: Assumes no capital growth 1 Assumes a top marginal tax rate for Ontario of 46.4% for Same Gross Income
T-Class Corporate Class Advantage T-Class is built on the tax-efficiency of CI’s Corporate Class, which ensures: Distributions will be ROC Flexibility to move between T-Class and all CI Corporate Class funds, without triggering a taxable event
T-Class Investment Lineup
T-Class Competitive Advantage
How Does T-Class Work?
Calculation of Monthly Payments T-Class distribution is adjusted based on previous year’s performance.
T-Class in a Rising Market
T-Class in a Falling Market
Sales Process Identify target markets Select investment that fits your clients’ objectives and risk tolerance Choose from two target distributions: 5% or 8% –or adjust to fit your clients’ income needs Consider a conservative leveraged strategy
Target Markets Non-registered investors looking for a tax-efficient source of income Retirees seeking income, without triggering OAS clawbacks Investors who may be suitable for a strategy using leverage, so that the investment pays the costs of the loan
Select Funds Growth of $10,000
Key Benefits Flexible to provide cash flow tailored to meet your clients’ needs Stable, sustainable monthly income Tax efficiency Provides income without sacrificing growth
T-Class and Portfolio Series *Includes distributions from inception until June 30, 2007.
T-Class Competitive Position CI’s Corporate Class tax-efficient platform: –convert, switch, defer –ROC certainty Most of industry – mutual fund trusts –switches trigger taxable distributions –ROC is “top-up” CI offers largest group of funds: –CI’s most popular funds, Portfolio Select Series and Portfolio Series (balanced and growth mandates)
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All charts and illustrations in this guide are for illustrative purposes only. They are not intended to predict or project investment results. ® CI Investments and the CI Investments design are registered trademarks of CI Investments Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise indicated and except for returns for periods less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data assume reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.