Series T funds provide an option for investors looking for steady, tax-efficient cash flow with the potential for capital appreciation.
The benefit of choosing Series T: tax-efficient income
All Mackenzie Investments Series T funds pay either a 5% (Series T5) or 8% (Series T8) annualized distribution. They also distribute, in whole or in part, return of capital (ROC), which is not immediately taxable. Tax is deferred until fund units or shares are sold, or the investor’s capital is depleted. The adjusted cost base (ACB) is lowered by the amount of ROC and any capital gain (or loss) is realized when the investment is sold.
Combining Series T and Corporate Class Funds
Mackenzie Corporate Class Funds can provide more tax efficiency for investments held outside of registered plans such as RRSPs and TFSAs. Many Mackenzie Corporate Class Funds offer a Series T version, a combination that provides additional opportunities for tax-efficient growth and income. The taxable portion of the monthly distribution is minimized or eliminated in a Corporate Class Series T fund.
Flexible Payout Service
With Mackenzie Flexible Payout Service (FPS) you can fully customize the tax-efficient income you receive according to your needs.
Who should invest in Series T?
- Investors seeking tax-efficient income outside of their registered plans.
- Seniors who want to grow or receive income from their investments while preserving their Old Age Security (OAS)/Guaranteed Income Supplement (GIS).
- Personal corporations looking for tax-efficient income distributions.
The payment of distributions should not be confused with a fund’s performance, rate of return, or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero.
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.