Quadrus corporate class           1
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Quadrus corporate class fundsQuadrus corporate class funds offer a collection of multi-manager and individual funds from s...
The tax advantages in detail1. The ability to switch or rebalance among                                        Keep more m...
Benefits of corporate                                    Taking an incomeclass funds                                      ...
Transition from saving to taking an incomeEven though you may be growing your assets                The benefits of D seri...
A look at the fundsComplement a portfolio with exclusive investment opportunitiesThese three funds offer you unique invest...
Build portfolios with asset class funds at the coreThese six funds offer you a diversified portfolio within each asset cla...
Portfolio sub-advisor           Strategy                                               Target                             ...
Portfolio sub-advisor           Strategy                                             Target                               ...
Quadrus Group of Funds brings together the expertise of these prominent investment managers                      from arou...
Commissions, trailing commissions, management fees and                                                                  ex...
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Corporate Class Funds

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Corporate Class Funds

  1. 1. Quadrus corporate class 1
  2. 2. 2
  3. 3. Quadrus corporate class fundsQuadrus corporate class funds offer a collection of multi-manager and individual funds from some of theworld’s leading investment managers.Each multi-manager equity fund is engineered to minimize risk and was created based on rigorousselection criteria and subjected to extensive portfolio testing. This process helps ensure each fund offersminimal volatility for the level of expected return.The single-manager funds work well as a complement to other corporate class funds, giving you a unique,tax-efficient portfolio that’s diversified across investment management style, asset class and geographic region. A tax-efficient way to invest Corporate class funds can help you reduce the income tax you pay in three ways: 1. Rebalancing or switching among funds in your account does not trigger immediate capital gains. 2. There is the potential to receive lower taxable income. 3. If there is taxable income, you pay less tax on it because of the type of income (capital gains and/or dividend income). These opportunities to reduce the amount of tax payable exist because in the corporate mutual fund structure, each fund in the family is actually a different class of shares within a single corporation. 3
  4. 4. The tax advantages in detail1. The ability to switch or rebalance among Keep more money after tax the funds without immediately triggering Not all investment income is taxed at the same taxable gains or losses rate. Corporate class funds distribute capitalWhen you sell one fund to acquire another gains and dividends, which are taxed at lowerwithin this selection of corporate class funds, rates than interest income, allowing you to keepcapital gains are not immediately triggered.* more of what you earn.2. Potentially lower distributions in any $1,000 given year $800The corporate structure allows the funds withinthe corporation to pool all income and expenses $600for income tax purposes, potentially reducing thetaxable distributions to investors in any given year. $400 $2003. Tax-effective incomeYou receive tax-preferred capital gains or $0dividend distributions – even from the Interest Eligible Capital dividends gainsfixed income and cash management classes.Corporations, including corporate class mutual After-tax incomefunds, may only pass income on to clients inthe form of capital gains or ordinary dividends.These forms of income are more tax efficientthan interest income you may earn through Assumptionsother investments. $1,000 investment incomeAn increase in the volume of switching activity may increase or accelerate* Tax rates:capital gains earned in the classes, potentially increasing capital gains orordinary dividends paid to investors. • Interest income – 46.41% • Eligible dividends – 26.57% • Capital gains – 23.2% Source: Ernst & Young 2010 tax calculator. This illustration considers the amount of income only and does not consider how much capital would have been required to create each type of income. These tax rates are based on the highest marginal tax rate for residents of Ontario. Residents of other provinces may be taxed at different rates. These rates are current as of June 15, 2010. They may change at any time. 4
  5. 5. Benefits of corporate Taking an incomeclass funds Your goal: Maximize after-tax cash flow by reducing tax paid today. When you are ready to take an income, D seriesSaving corporate class funds can help you generate a tax-deferred income stream from yourYour goal: Maximize the growth of your non-registered investments. A diversified portfolioinvestments, reduce taxable income and defer tax of D series corporate class funds allows you to:as long as possible.During the years you’re actively saving, corporateclass funds can help you achieve your goals Manage portfolio driftbecause a diversified portfolio of corporate class Withdrawing income from your investments canfunds allows you to: accelerate portfolio drift. Investing in D series corporate class funds gives you the ability to rebalance your investments without immediately Manage portfolio drift with rebalancing triggering capital gains while receiving an income.Some portions of your portfolio will grow fasterthan others, causing your asset mix to becomeout of line with your risk tolerance. Corporate Reduce taxable income – return of capitalclass funds give you the ability to rebalance your and lower distributionsinvestments by switching between the funds The potential for lower taxable distributionswithout immediately triggering capital gains. and monthly cash flow (from your D series investment) that is comprised mostly of return of capital, allows you to reduce the taxes you pay Reduce taxable income – lower distributions now and maximize the after-tax cash flow fromThe potential for lower distributions from your your investments. Taxable income may also beinvestments during your peak earning years, reduced because dividends and capitals gains arewhen you’re likely in a higher tax bracket, taxed at a lower rate than interest income on theallows you to minimize the taxes you pay now fixed income and cash management classes.and maximize the growth of your investments.Taxable income is also reduced because dividendsand capital gains are taxed at a lower rate than Manage your income needsinterest income on the fixed income and cash Although you planned carefully for the incomemanagement classes. years, your needs may change over time. If that happens, you can switch between a five and eight per cent distribution rate as required to meet your changing needs. Manage your risk toleranceAs your risk tolerance changes, you can switch between the corporate class funds to reflect this withoutimmediately triggering capital gains. 5
  6. 6. Transition from saving to taking an incomeEven though you may be growing your assets The benefits of D seriesat this stage of your life, now is also the time toplan for the transition from saving to taking corporate classan income. One of the biggest challenges of Provides tax-efficient monthly cash flowthis transition is how to reduce or defer tax soyou can keep more of your hard-earned money. Defers taxes and reduces taxable income nowCorporate class funds can help. Switch into other corporate class funds withoutYou can grow your assets by investing in immediately triggering a taxable dispositioncorporate class funds now, then when you are Corporate class funds provide options to helpready to take an income from your investments, meet your needs in both phases and makes theyou can switch into D series corporate class transition from saving to taking an incomewithout triggering a taxable disposition. seamless and tax efficient.D series provides you with tax-efficientmonthly cash flow, most of which is returnof capital, which isn’t taxed immediatelywhen it is received.Instead, your adjusted cost base (ACB) isreduced, allowing you to defer taxes until somepoint in the future. Once your ACB reacheszero, any further return of capital is taxed as acapital gain, of which only 50 per cent is taxable.This strategy allows you to tax-efficiently growyour non-registered assets and then beginwithdrawing income from them when needed –all while reducing or deferring taxable income. 6
  7. 7. A look at the fundsComplement a portfolio with exclusive investment opportunitiesThese three funds offer you unique investment opportunities that are available exclusively throughQuadrus Group of Funds. Use them to complement your other corporate class fund holdings. Portfolio sub-advisor Strategy Target allocation* Quadrus Sionna Canadian Value Corporate Class Pursues long-term capital appreciation by investing primarily in equity securities of Canadian corporations. The fund is managed Sionna Investment using a relative value approach to bottom-up 100% Managers Ltd. stock selection using a disciplined research process to identify undervalued, high-quality companies. Quadrus Eaton Vance U.S. Value Corporate Class Class Provides long-term capital growth appreciation by investing primarily in equity securities of U.S. corporations. Eaton Vance uses a Eaton Vance Managed value-oriented, research-driven and risk- 100% Investments averse investment approach that results in a well-diversified portfolio of large-capitalization value stocks. Quadrus Setanta Global Dividend Corporate Class Seeks to achieve long-term investment returns through capital growth and dividend yield by Setanta Asset Management Ltd. investing primarily in common and preferred 100% shares of companies anywhere in the world. *Subject to change without notice 7
  8. 8. Build portfolios with asset class funds at the coreThese six funds offer you a diversified portfolio within each asset class. Use them to build a completeportfolio and enjoy the potential tax advantages, or to complement your existing holdings and expandyour exposure to one or more particular asset classes. Portfolio sub-advisor Strategy Target allocation* Quadrus Cash Management Corporate Class Invest in Canadian money market securities Laketon Investment such as commercial paper and federal and 100% Management Ltd. provincial treasury bills. Quadrus Fixed Income Corporate Class Invest directly or indirectly in a range of fixed income investments such as traditional fixed-rate, investment-grade Canadian London Capital government and corporate bonds, variable 100% Management Ltd. rate bonds, real return bonds, high-yield bonds, structured investments, foreign bonds and money market securities. Quadrus Canadian Equity Corporate Class Bisset Investment Direct investment in Bissett Canadian Equity Fund 10-20% Management The focus is on selecting stocks that GWL Investment achieve strong earnings momentum, 10-20% Management Ltd. especially driven by revenue growth. Howson Tattersall Investment Direct investment in Mackenzie Saxon Stock Fund 10-20% Counsel Ltd. The focus is on growth-oriented Laketon Investment companies with proven and sustainable 10-20% Management Ltd. earnings potential. Investment will be in higher-yielding, dividend- paying companies and income trusts that, Laketon Investment historically, have share values that fluctuate 10-20% Management Ltd. less than the market because of their yield cushion. Stock selection focuses on corporations with London Capital strong and improving earnings growth profiles, but that are trading at reasonable values 10-20% Management Ltd relative to their growth. Direct investment in Mackenzie Maxxum Mackenzie Financial Corporation Canadian Equity Growth Fund 10-20% *Subject to change without notice 8
  9. 9. Portfolio sub-advisor Strategy Target allocation*Quadrus North American Specialty Corporate ClassFidelity Investments Direct investment in Fidelity Canadian Opportunities Fund 10-20%Canada ULCFidelity Investments Direct investment in Fidelity Northstar® Fund 10-20%Canada ULC Investment will be primarily in NorthGWL Investment American equity securities in the small and middle capitalization range that have an 15-25%Management Ltd. above-average growth potential.Howson Tattersall Investment Direct investment in Mackenzie Saxon Microcap Fund 0-5%Counsel Ltd.Howson Tattersall Investment Direct investment in Mackenzie Saxon Small Cap Fund 5-15%Counsel Ltd.Mackenzie Cundill Investment Direct investment in Mackenzie Cundill Canadian Security Class 10-20%Management Ltd.Mackenzie Financial Direct investment in Mackenzie Ivy Enterprise Class 10-20%CorporationMackenzie Financial Direct investment in Mackenzie Universal 5-15%Corporation Canadian Resource FundQuadrus U.S. and International Equity Corporate ClassFidelity Investments Direct investment in Fidelity American Disciplined Equity® Fund 12-22%Canada ULC Direct investment in AIM GlobalInvesco Trimark Ltd. Growth Class Fund 12-22% Investment will be primarily in publiclyLondon Capital traded securities of mid-to-large capitalization 12-22%Management Ltd. U.S. companies.Mackenzie Cundill Investment Direct investment in Mackenzie Cundill International Class 12-22%Management Ltd.Mackenzie Financial Direct investment in Mackenzie Ivy Foreign Equity Class 12-22%Corporation Investment will be made in securities of companies located in Europe, the Far EastSetanta Asset and the Pacific Basin. Emphasis is on qualityManagement Ltd. 12-22% companies that trade at an attractive valuation. *Subject to change without notice 9
  10. 10. Portfolio sub-advisor Strategy Target allocation*Quadrus U.S. and International Specialty Corporate ClassFortis Investment Direct investment in Mackenzie Universal World Real Estate Class 0-10%Management Canada Ltd.Franklin Templeton Direct investment in Templeton Global Smaller Companies Fund 5-15%Investments Corp. Direct investment in Trimark U.S. SmallInvesco Trimark Ltd. Companies Class 5-15%Ivy Investment Direct investment in Mackenzie Universal U.S. Emerging Growth Class 5-15%Management CompanyMackenzie Cundill Investment Direct investment in Mackenzie Cundill Recovery Fund 0-10%Management Ltd.Mackenzie Cundill Investment Direct investment in Mackenzie Cundill Emerging Markets Value Class 0-10%Management Ltd.Mackenzie Financial Direct investment in Mackenzie Universal Emerging Markets Class 7-17%CorporationMackenzie Financial Direct investment in Mackenzie Universal World Precious Metals Class. 0-10%CorporationMackenzie Financial Direct investment in Mackenzie Universal World Resource Class 0-10%CorporationMackenzie Financial Direct investment in Mackenzie Universal Technology Class 0-10%CorporationMackenzie Financial Direct investment in Mackenzie Universal Health Sciences Class 0-10%CorporationMackenzie Financial Direct investment in Mackenzie Universal Global Infrastructure Fund 0-10%CorporationMackenzie Financial Direct investment in Mackenzie Universal Gold Bullion Class 0-10%CorporationTempleton Asset Direct investment in Templeton BRIC Corporate Class 7-17%Management Ltd. *Subject to change without notice 10
  11. 11. Quadrus Group of Funds brings together the expertise of these prominent investment managers from around the world to manage your money. 11
  12. 12. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated. Overall, while corporate class funds provide tax-deferral advantages, taxes may still be payable in the future,as these funds only delay realizing a taxable capital gain.Corporate class funds don’t allow you to avoid incurring tax liabilities. When clients redeem funds from the corporate class fund family a capital gain or loss is created. Funds may realize capital gains from trading activity (switches) that may potentially increase capital gains dividends distributed to investors. The information provided is accurate to the best of our knowledge as of the date of publication, but rules and interpretations may change. This information is general in nature, and is intended for educational purposes only. For specific situations you should consult the appropriate legal, accounting or tax expert. 12Quadrus Investment Services Ltd. and design, Quadrus Group of Funds and Fusion are trademarks of Quadrus Investment Services Ltd. In Quebec,Quadrus Investment Services Ltd. is a firm in financial planning and a mutual fund dealer firm. 46-4381-7/10

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