CI Corporate Class look inside Overview1 Equity Funds CI American Equity Corporate Class 2
DYNAMIC CORPORATE CLASS
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Transcript of DYNAMIC CORPORATE CLASS
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DYNAMICCORPORATE CLASS
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“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
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TAXES VERSUS THE NECESSITIES OF LIFE
THE AMOUNT CANADIANS PAY IN TAX HAS GROWN THE MOST
Source: April 2011, Fraser Institute.
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AverageConsumer Price
Index
Clothing Food Shelter Average CashIncome
Consumer TaxIndex
Percentage Increase Since 1961
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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
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DYNAMIC CORPORATE CLASS
WHAT IS DYNAMIC CORPORATE CLASS?
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DYNAMIC CORPORATE CLASS
Dynamic Corporate Class gives you 2 main benefits:
Tax-free switching & rebalancing Tax-efficient distributions
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TAX FREE SWITCHING
SWITCHING TRIGGERS A TAXABLE EVENT
SWITCHING DOES NOT TRIGGER A TAXABLE EVENT
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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
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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
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TAX EFFICIENT DISTRIBUTIONS
HOW CORPORATE CLASS ACHIEVES TAX EFFICIENT DISTRIBUTIONS
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TAX FREE SWITCHING + TAX EFFICIENT DISTRIBUTIONS = MORE GROWTH
$89,624or29% 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
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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
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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
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THANK YOU!
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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.