Passive Foreign Investment Company Statements | Mackenzie Investments

Passive Foreign Investment Company Statements

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