Mackenzie Investments is pleased to provide Passive Foreign Investment Company (PFIC) annual information statements to unitholders of Mackenzie exchange traded funds (ETFs) who are considered U.S. Persons for U.S. tax purposes. We strongly recommend you consult with a U.S. tax professional with regard to U.S. tax rules around PFIC and implications of PFIC reporting to you.
For unitholders of Mackenzie funds (excluding ETFs), please speak with your financial advisor about obtaining an individualized copy of your PFIC statements.
1. What is a PFIC?
A passive foreign investment company (PFIC) is defined as a non-U.S. corporation which has at least 75% of its gross income considered passive income, or at least 50% of its assets produce, or held to produce, passive income. Passive income includes, but is not limited to earned interest, dividends, and capital gains. Canadian mutual funds and exchanged-traded funds (ETFs) are typically classified as PFICs for U.S. tax purposes.
2. Whom do PFIC rules impact?
Investors who hold units of Canadian mutual funds or ETFs and file U.S. tax returns, or are otherwise considered “U.S. Persons” for U.S. tax purposes, may benefit from PFIC reporting.
We recommend unitholders of Mackenzie ETFs speak with a U.S. tax professional to determine whether they are “U.S. Persons” for tax purposes.
3. What are PFIC Annual Information Statements (AIS)?
PFIC Annual Information Statements (AIS) contain information that enables investors classified as “U.S. Persons”, if they choose, to elect to treat each Mackenzie ETF as a Qualified Electing Fund (QEF) on IRS Form 8621 on an annual basis. The QEF election allows investors to defer taxes on unrealized capital gains and receive the more favorable capital gains tax rates on any realized capital gains. Whether the QEF election is appropriate for an investor may depend on his or her individual circumstances. We therefore strongly recommend that investors speak with their financial advisor and/or tax advisor to discuss PFIC reporting and its consequences.
4. How do investors access PFIC statements for Mackenzie ETFs?
The PFIC statements for Mackenzie ETFs (both English and French versions) are posted on the Mackenzie Investments website. These statements are not mailed to individual investors.
5. When are PFIC statements for Mackenzie ETFs made available on Mackenzie’s website?
The PFIC statements for Mackenzie ETFs for each taxation year will be posted on Mackenzie’s website on or before March 31st of the following year.
6. Which Mackenzie ETFs provide PFIC reporting?
Currently PFIC statements are available for all Mackenzie ETFs. This may be subject to change without further notice.
|PFIC Annual Information Statements (AIS) Download|
|Mackenzie Canadian Aggregate Bond Index ETF||QBB|
|Mackenzie Canadian All Corporate Bond Index ETF||QCB|
|Mackenzie Canadian Equity Index ETF||QCN|
|Mackenzie Canadian Large Cap Equity Index ETF||QCE|
|Mackenzie Canadian Short-Term Bond Index ETF||QSB|
|Mackenzie Canadian Short-Term Fixed Income ETF||MCSB|
|Mackenzie China A-Shares CSI 300 Index ETF||QCH|
|Mackenzie Core Plus Canadian Fixed Income ETF||MKB|
|Mackenzie Core Plus Global Fixed Income ETF||MGB|
|Mackenzie Floating Rate Income ETF||MFT|
|Mackenzie Global High Yield Fixed Income ETF||MHYB|
|Mackenzie Global Leadership Impact ETF||MWMN|
|Mackenzie International Equity Index ETF||QDX|
|Mackenzie International Equity Index ETF (CAD-Hedged)||QDXH|
|Mackenzie Ivy Global Equity ETF||MIVG|
|Mackenzie Maximum Diversification All World Developed ex North America Index ETF||MXU|
|Mackenzie Maximum Diversification All World Developed Index ETF||MWD|
|Mackenzie Maximum Diversification Canada Index ETF||MKC|
|Mackenzie Maximum Diversification Developed Europe Index ETF||MEU|
|Mackenzie Maximum Diversification Emerging Markets Index ETF||MEE|
|Mackenzie Maximum Diversification US Index ETF||MUS|
|Mackenzie Portfolio Completion ETF||MPCF|
|Mackenzie Unconstrained Bond ETF||MUB|
|Mackenzie US High Yield Bond Index ETF (CAD-Hedged)||QHY|
|Mackenzie US Investment Grade Corporate Bond Index ETF (CAD-Hedged)||QUIG|
|Mackenzie US TIPS Index ETF (CAD-Hedged)||QTIP|
|Mackenzie US Large Cap Equity Index ETF||QUU|
|Mackenzie US Large Cap Equity Index ETF (CAD-Hedged)||QAH|