Presentation on theme: "DYNAMIC CORPORATE CLASS Name Tile Company DATE. 2 “Taxes have grown over the past 49 years to the point that government is now the largest expenditure."— Presentation transcript:
2 “Taxes have grown over the past 49 years to the point that government is now the largest expenditure facing a family” Niels Veldhuis, Fraser Institute senior economist and co-author of the Canadian Consumer Tax Index, 2011
3 TAXES VERSUS THE NECESSITIES OF LIFE THE AMOUNT CANADIANS PAY IN TAX HAS GROWN THE MOST Source: April 2011, Fraser Institute.
4 DYNAMIC CORPORATE CLASS When you invest in a corporate class mutual fund it is under the umbrella of the corporation Each mutual fund is a part – or a share – of the corporation
5 DYNAMIC CORPORATE CLASS WHAT IS DYNAMIC CORPORATE CLASS?
6 DYNAMIC CORPORATE CLASS Dynamic Corporate Class gives you 2 main benefits: Tax-free switching & rebalancing Tax-efficient distributions
7 TAX FREE SWITCHING SWITCHING TRIGGERS A TAXABLE EVENT SWITCHING DOES NOT TRIGGER A TAXABLE EVENT
8 TAX EFFICIENT DISTRIBUTIONS If you hold a mutual fund trust you may receive various forms of taxable distributions. They’re all taxed differently, some more heavily than others. Interest Income Capital Gains Dividend Income
9 TAX EFFICIENT DISTRIBUTIONS Corporate Class funds will never distribute Interest Income It will only pay return of capital, ordinary or capital gains dividends DIFFERENT LEVELS OF TAXATION
10 TAX EFFICIENT DISTRIBUTIONS HOW CORPORATE CLASS ACHIEVES TAX EFFICIENT DISTRIBUTIONS
11 TAX FREE SWITCHING + TAX EFFICIENT DISTRIBUTIONS = MORE GROWTH $89,624 or 29% more This hypothetical scenario assumes a $100,000 initial investment in portfolios consisting of 100% equity with both switching to 80% equity and 20% fixed income after five years, 65%/35% after ten years and 50%/50% after 15 years. Annual return of 8% on equity and 5% on fixed income for an average annual portfolio return of 7.3%. The fixed income portion of the traditional fund generated 2.5% annually of interest income. Zero distributions. Capital gain inclusion rate of 50% and a marginal tax rate of 46.41% with annual rebalancing. In this hypothetical situation, the Dynamic Corporate Class Funds accumulated $89,624 (28.6%) more than the traditional mutual fund trusts. INVESTMENT VALUE OVER A 20 YEAR PERIOD
12 WHY CHOOSE DYNAMIC CORPORATE CLASS? A broad lineup of investments From fixed income to balanced, to Canadian or global equity funds, Dynamic Corporate Class gives you choice; you have a broad range of investment options An award-winning portfolio management team With Dynamic Corporate Class, you benefit from the strength of industry-leading portfolio management
13 ABOUT DYNAMIC FUNDS Dynamic Funds began life as a small investment club in Montreal in 1957 and has since grown into an award- winning family of funds, encompassing more than 80 investment products with the loyal support of Financial Advisors and Investors nationwide We offer a comprehensive range of products and services that span every major sector, asset class, geographic region and investment discipline Today, Dynamic Funds is one of the largest fund families in Canada, bringing together some of the most astute investment professionals in the country
15 IMPORTANT INFORMATION Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of GCIC Ltd.