Get income the tax-efficient way

Most of our funds are available in Series T, which we’ve designed to provide regular, tax-efficient cash flow from your non-registered savings.

Series T is most likely to benefit you when you need to draw income from your investments in retirement. In the early years of your retirement, Series T will pay you a distribution made up of a combination of the income earned within the fund and a portion of your original investment. By doing this, you may be able to receive some of the gains you accumulated in those early years on a tax-deferred basis. The portion of the distribution that is drawn from your original investment is known as a return of capital or ROC.

Since the money you originally paid for the investment is being returned to you, the tax cost of your investments (your “adjusted cost base” or ACB) is reduced. Later on, after the tax cost of your investments has been totally returned to you, subsequent excess distributions will represent capital gains, which are taxed more favourably than other types of investment income. And by this time, you may also be in a lower tax bracket, resulting in even less tax.